1. Leadership “I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep.” (Talleyrand)

2. What Is Leadership? Leadership – The ability to influence a group toward the achievement of goals. Management – Use of authority inherent in designated formal rank to obtain compliance from organizational members. Both are necessary for organizational success. © 2009 Prentice-Hall Inc. All rights reserved. 12-2

3. What Managers Do Planning. Organizing. Leading. Controlling. Who is superior: a leader or a manger??

4. Leadership Theories Trait theories. Behavioural theories. Contingency theories. Leader-member exchange (LMX) theories.

5. Trait Theories of Leadership Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non- leaders. Leadership Traits – Intelligence. – Toughness. – Determination and Vision. – Emotional Intelligence. Traits can predict leadership, but they are better at predicting leader emergence than effectiveness © 2009 Prentice-Hall Inc. All rights reserved. 12-5

6. Emotional Intelligence (EI) Components of EI: Self-Awareness: -Know your weaknesses and don’t be afraid to talk about them. Self regulation: Able to control their impulses and channel them for good purposes. Motivation: A passion for achievement for its own sake “not stimulated by incentives”. Empathy: Taking into accounts feeling of others when making decisions. Social skills: The ability to build rapport with others. “managers who simply try to be social while lacking the other components of EI are likely to fail”.

7. Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from non-leaders Differences between theories of leadership: – Trait theory: leadership is inherent, so we must identify the leader based on his or her traits. – Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders. © 2009 Prentice-Hall Inc. All rights reserved. 12-7

8. Important Behavioral Studies Ohio State University – Found two key dimensions of leader behavior: Initiating structure – the defining and structuring of roles Consideration – job relationships that reflect trust and respect Both are important University of Michigan – Also found two key dimensions of leader behavior: Employee-oriented – emphasize interpersonal relationships and is the most powerful dimension Production-oriented – emphasize the technical aspects of the job – The dimensions of the two studies are very similar © 2009 Prentice-Hall Inc. All rights reserved. 12-8

9. Contingency Theories While trait and behavior theories do help us understand leadership, an important component is missing: the environment in which the leader exists. Contingency Theory deals with this additional aspect of leadership effectiveness studies. Three key theories: – Fielder’s Model – Hersey and Blanchard’s Situational Leadership Theory – Path-Goal Theory © 2009 Prentice-Hall Inc. All rights reserved. 12-9

10. Fiedler Model Effective group performance depends on the proper match between leadership style and the situation Considers Three Situational Factors: – Leader-member relations: degree of confidence and trust in the leader – Task structure: degree of structure in the jobs – Position power: leader’s ability to hire, fire, and reward For effective leadership: must change to a leader who fits the situation or change the situational variables to fit the current leader © 2009 Prentice-Hall Inc. All rights reserved. 12-10

11. Fiedler’s Cognitive Resource Theory A refinement of Fielder’s original model: – Focuses on stress as the enemy of rationality and creator of unfavorable conditions – A leader’s intelligence and experience influence his or her reaction to that stress Stress Levels: – Low Stress: Intellectual abilities are effective – High Stress: Leader experiences are effective Research is supporting the theory © 2009 Prentice-Hall Inc. All rights reserved. 12-11

12. Hersey & Blanchard’s Situational Leadership A model that focuses on follower “readiness” – Followers can accept or reject the leader – Effectiveness depends on the followers’ response to the leader’s actions – “Readiness” is the extent to which people have the ability and willingness to accomplish a specific task A paternal model: – As the child matures, the adult releases more and more control over the situation – As the workers become more ready, the leader becomes more laissez-faire An intuitive model that does not get much support from the research findings © 2009 Prentice-Hall Inc. All rights reserved. 12-12

13. House’s Path-Goal Theory The Theory: – Leaders provide followers with information, support, and resources to help them achieve their goals – Leaders help clarify the “path” to the worker’s goals – Leaders can display multiple leadership types Four types of leaders: – Directive: focuses on the work to be done – Supportive: focuses on the well-being of the worker – Participative: consults with employees in decision-making – Achievement-Oriented: sets challenging goals © 2009 Prentice-Hall Inc. All rights reserved. 12-13

14. Leader-Member Exchange (LMX) Theory A response to the failing of contingency theories to account for followers and heterogeneous leadership approaches to individual workers LMX Premise: – Because of time pressures, leaders form a special relationship with a small group of followers: the “in-group” – This in-group is trusted and gets more time and attention from the leader (more “exchanges”) – All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer “exchanges”) – Leaders pick group members early in the relationship © 2009 Prentice-Hall Inc. All rights reserved. 12-14

15. LMX Model How groups are assigned is unclear – Follower characteristics determine group membership Leaders control by keeping favorites close Research has been generally supportive Exhibit 12-3 © 2009 Prentice-Hall Inc. All rights reserved. 12-15

16. Global Implications These leadership theories are primarily studied in English-speaking countries GLOBE does have some country-specific insights – Brazilian teams prefer leaders who are high in consideration & participative. – French workers want a leader who is high on initiating structure and task-oriented. – Chinese workers may favor a moderately participative style Leaders should take culture into account © 2009 Prentice-Hall Inc. All rights reserved. 12-16

17. Summary and Managerial Implications Leadership is central to understanding group behavior as the leader provides the direction Intelligence, determination, and openness all show consistent relationships to leadership Behavioral approaches have narrowed leadership down into two usable dimensions Need to take into account the situational variables, especially the impact of followers. © 2009 Prentice-Hall Inc. All rights reserved. 12-17