1. PowerPoint Presentation by Charlie Cook The University of West Alabama © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

2. 17–2 The Nature of Leadership The Meaning of LeadershipThe Meaning of Leadership  Leadership as a Process: what leaders actually do.  Using noncoercive influence to shape the group’s or organization’s goals.  Motivating others’ behavior toward goals.  Helping to define organizational culture.  Leaders are people who can influence the behaviors of others without having to rely on force.  Leadership as a Property: who leaders are.  Characteristics attributed to individuals perceived as leaders.  Leaders are people who are accepted as leaders by others.

3. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–3 Leadership Versus Management LeadershipActivityManagement Establishing direction and vision for the organization Creating an agendaPlanning and budgeting, allocating resources Aligning people through communications and actions that provide direction Developing a human network for achieving the agenda Organizing and staffing, structuring and monitoring implementation Motivating and inspiring by satisfying needs Executing plansControlling and problem solving Produces useful change and new approaches to challenges OutcomesProduces predictability and order and attains results

4. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–4 17.1 Distinctions Between Management and Leadership ActivityManagementLeadership Creating an agendaPlanning and budgeting: Establishing detailed steps and timetables for achieving needed results; allocating the resources necessary to make those needed results happen Establishing direction: Developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision Developing a human network for achieving the agenda Organizing and staffing: Establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation Aligning people: Communicating the direction by words and deeds to everyone whose cooperation may be needed to influence the creation of teams and coalitions that understand the visions and strategies and accept their validity Executing plansControlling and problem solving: Monitoring results versus planning in some detail, identifying deviations, and then planning and organizing to solve these problems Motivating and inspiring: Energizing people to overcome major political, bureaucratic, and resource barriers by satisfying very basic, but often unfulfilled, human needs OutcomesProduces a degree of predictability and order and has the potential to produce consistently major results expected by various stakeholders (for example, for customers, always being on time; or, for stockholders, being on budget) Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (for example, new products that customers want, or new approaches to labor relations that help make a firm more competitive)

5. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–5 Management Challenge Question Based on what you learned about motivation in the previous chapter, is the statement— “management is functional, leadership is motivational”—defensible or are leaders really just practicing a higher form of management?Based on what you learned about motivation in the previous chapter, is the statement— “management is functional, leadership is motivational”—defensible or are leaders really just practicing a higher form of management?

6. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–6 The Nature of Leadership (cont’d) Legitimate power Coercive power Referent power Expert power Reward power Types of Power

7. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–7 Leadership and Power Power is the ability to affect the behavior of others.Power is the ability to affect the behavior of others.  Legitimate power is granted through the organizational hierarchy.  Reward power is the power to give or withhold rewards.  Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat.  Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma.  Expert power is derived from the possession of information or expertise.

8. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–8 Power and Leadership Legitimate request Coercion Personal identification Information distortion Inspirational appeal Rational persuasion Instrumental compliance Uses of Power by Leaders

9. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–9 Using Power Legitimate RequestLegitimate Request  A subordinate’s compliance with a manager’s request because the organization has given the manager the right to make the request. Instrumental ComplianceInstrumental Compliance  A subordinate complies with a manager’s request to get the rewards that the manager controls. CoercionCoercion  Threatening to fire, punish, or reprimand subordinates if they do not do something.

10. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–10 Using Power (cont’d) Rational PersuasionRational Persuasion  Convincing subordinates compliance is in their best interest. Personal IdentificationPersonal Identification  Using the superior’s referent power to shape a subordinate’s behavior. Inspirational AppealInspirational Appeal  Influencing a subordinate’s behavior through an appeal to a set of higher ideals or values (e.g., loyalty). Information DistortionInformation Distortion  Withholding or distorting information (which may create an unethical situation) to influence subordinates’ behavior.

11. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–11 Management Challenge Question How would you rank the effectiveness of the forms of power that are used by managers when their subordinates are your age?How would you rank the effectiveness of the forms of power that are used by managers when their subordinates are your age?  Which type of power is most effective? Why?  Which type of power is the least effective? Why?  What does your ranking reveal about how the use of power by managers is changing (or must change) in today’s organization?

12. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–12 Generic Approaches to Leadership Leadership Traits ApproachLeadership Traits Approach  Assumed that a basic set of personal traits that differentiated leaders from nonleaders could be used to identify leaders and as a tool for predicting who would become leaders.  The trait approach did not establish empirical relationships between traits and persons regarded as leaders.

13. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–13 Approaches to Leadership Job-centered behavior Employee-centered behavior Initiating-structure behavior Consideration behavior Leadership Behaviors Studies Michigan StudiesOhio State Studies

14. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–14 Leadership Behaviors Michigan Studies (Rensis Likert)Michigan Studies (Rensis Likert)  Identified two forms of leader behavior  Job-centered leader behavior  Employee-centered leader behavior  The two forms of leader behaviors were considered to be at opposite ends of the same continuum and similar to (respectively) Likert’s System 1 and System 4 of organizational design.

15. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–15 Leadership Behaviors (cont’d) Ohio State StudiesOhio State Studies  Did not interpret leader behavior as being one- dimensional as did the Michigan State studies.  Initial research assumption: leaders who exhibit high levels of both behaviors would be most effective leaders.  Identified two basic leadership styles that can be exhibited simultaneously:  Initiating-structure behavior  Consideration behavior

16. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–16 Leadership Behaviors (cont’d) Ohio State Studies (cont’d)Ohio State Studies (cont’d)  Subsequent research indicated that:  Employees of supervisors ranked high on initiating structure were high performers, but had low levels of satisfaction and had higher absenteeism.  Employees of supervisors ranked high on consideration had low- performance ratings, but had high levels of satisfaction and had less absenteeism.  Other situational variables make consistent leader behavior predictions difficult.

17. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–17 Situational Approaches to Leadership Situational Models of Leader BehaviorSituational Models of Leader Behavior  Assume that:  Appropriate leader behavior depends on the situation.  Situational factors that determine appropriate leader behavior can be identified. Situational Leadership Theories:Situational Leadership Theories:  Leadership behavior continuum  Least preferred coworker theory  Path-goal theory  Decision tree approach  Leader-member exchange approach

18. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–18 Situational Approaches to Leadership Leadership Continuum (Tannenbaum and Schmidt)Leadership Continuum (Tannenbaum and Schmidt)  Continuum identifies a range of levels of leadership from boss-centered to subordinate-centered leadership  Variables influencing the decision-making continuum:  Leader’s characteristics  Subordinates’ characteristics  Situational characteristics

19. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–19 17.2 Tannenbaum and Schmidt’s Leadership Continuum

20. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–20 Situational Approaches… (cont’d) Least Preferred Coworker (LPC)Least Preferred Coworker (LPC)  Assumed that leadership style is fixed and situation must be changed to favor leader.  Appropriate leadership style varies with situational favorableness (from the leader’s viewpoint).  LPC scale asks leaders to describe the person with whom they are least able to work well.  High scale scores indicate a relationship orientation; low scores indicate a task orientation on the part of the leader.  Situational favorableness is determined by:  Leader-member relations  Task structure  Position power

21. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–21 17.3 The Least-Preferred Coworker Theory of Leadership

22. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–22 Situational Approaches… (cont’d) Path-Goal Theory (Evans and House)Path-Goal Theory (Evans and House)  The primary functions of a leader are:  To make valued or desired rewards available in the workplace  To clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards  Leader Behaviors:  Directive leader behavior  Supportive leader behavior  Participative leader behavior  Achievement-oriented leader behavior

23. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–23 The Path-Goal Theory Situational Factors:Situational Factors: Work SituationLeadership StyleImpact on FollowersExpected Results Follower lacks self-confidence SupportiveIncreases self- confidence to complete task Increased effort. job satisfaction, and performance; fewer grievances Lack of job challenge Achievement- oriented Encourages setting high but attainable goals Improved performance and greater job satisfaction Improper procedures and poor decisions ParticipativeClarifies follower need for making suggestions and involvement Improved performance and greater satisfaction; less turnover Ambiguous jobDirectiveClarifies path to get rewards Improved performance and job satisfaction

24. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–24 17.4 The Path-Goal Framework

25. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–25 Situational Approaches… (cont’d) Vroom’s Decision Tree ApproachVroom’s Decision Tree Approach  Attempts to prescribe a leadership style appropriate to a given situation.  Basic premises:  Subordinate participation in decision making depends on the characteristics of the situation.  No one decision-making process is best for all situations.  After evaluating problem attributes, a leader chooses a path on the decision trees that determines the decision style and specifies the amount of employee participation. –Decision significance –Decision timeliness

26. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–26 Situational Approaches… (cont’d) Vroom’s Decision Tree Approach (cont’d)Vroom’s Decision Tree Approach (cont’d) Decide (alone) Consult (individually) Consult (group) Facilitate Decision-Making Styles Delegate

27. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–27 17.5 Vroom’s Time-driven Decision Tree

28. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–28 17.6 Vroom’s Development-driven Decision Tree

29. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–29 Situational Approaches (cont’d) The Leader-Member Exchange (LMX) ApproachThe Leader-Member Exchange (LMX) Approach  Stresses the importance of variable relationships between supervisors and each of their subordinates.  Vertical dyads  Leaders form unique independent relationships with each subordinate (dyads) in which the subordinate becomes a member of the leader’s out-group or in-group.

30. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–30 17.7 The Leader-Member Exchange (LMX) Model Leader Subordinate 1 2 3 4 5 Out-Group In-Group

31. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–31 Management Challenge Question Out of the loop? What effects does a dyadic relationship with a leader have on a subordinate’s participation in decision-making processes?Out of the loop? What effects does a dyadic relationship with a leader have on a subordinate’s participation in decision-making processes?

32. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–32 Related Approaches to Leadership Substitutes for LeadershipSubstitutes for Leadership  A concept that identifies situations in which leader behavior is neutralized or replaced by characteristics of subordinates, the task, and the organization. Subordinates Ability Experience Need for independence Professional orientation Indifference towards organizational goals Task Routineness The availability of feedback Intrinsic satisfaction Organization Formalization Group cohesion Inflexibility A rigid reward structure Characteristics that Substitute for Leadership

33. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–33 Charismatic Leadership (House) CharismaCharisma  Is an interpersonal attraction that inspires support and acceptance  Is an individual characteristic of a leader. Charismatic persons are more successful than non-charismatic persons.Charismatic persons are more successful than non-charismatic persons. Charismatic leaders are:Charismatic leaders are:  Self-confident  Have a firm conviction in their belief and ideals  Possess a strong need to influence people

34. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–34 Related Approaches… (cont’d) Charismatic Leadership (cont’d)Charismatic Leadership (cont’d)  Charismatic leaders in organizations must be able to:  envision the future, set high expectations, and model behaviors consistent with expectations.  energize others through a demonstration of excitement, personal confidence, and patterns of success.  enable others by supporting them, by empathizing with them, and by expressing confidence in them.

35. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–35 Related Approaches… (cont’d) Transformational LeadershipTransformational Leadership  goes beyond ordinary expectations by:  transmitting a sense of mission  stimulating learning  inspiring new ways of thinking

36. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–36 Keys to Successful Leadership Trusting in subordinate s Keeping cool Being an expert Simplifying things Inviting dissent Encouraging risk Developing a vision Successful Leadership

37. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–37 The Future of Leadership Strategic Leadership Cross-Cultural Leadership Ethical Leadership Emerging Approaches to Leadership

38. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–38 Political Behavior in Organizations Political BehaviorPolitical Behavior  The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes. Inducement Creation of an obligation Coercion Impression management Persuasion Common Political Behaviors

39. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–39 Management Challenge Questions How could managers use impression management to increase their referent and expert powers?How could managers use impression management to increase their referent and expert powers? How could impression management conflict with ethical leadership?How could impression management conflict with ethical leadership?

40. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.17–40 Managing Political Behavior Be aware that even if actions are not politically motivated, others may assume that they are.Be aware that even if actions are not politically motivated, others may assume that they are. Reduce the likelihood of subordinates engaging in political behavior by providing them with autonomy, responsibility, challenge, and feedback.Reduce the likelihood of subordinates engaging in political behavior by providing them with autonomy, responsibility, challenge, and feedback. Avoid using power to avoid charges of political motivation.Avoid using power to avoid charges of political motivation. Get disagreements and conflicts out in the open so that subordinates have less opportunity to engage in political behavior.Get disagreements and conflicts out in the open so that subordinates have less opportunity to engage in political behavior. Avoid covert behaviors that give the impression of political intent even if none exists.Avoid covert behaviors that give the impression of political intent even if none exists.