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13 Leadership Chapter McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives After reading this chapter, you should be able to:
Distinguish between management and leadership. Recognize how leaders use different power bases to exercise influence. Differentiate effective from ineffective leaders. Identify and apply the major theories of leadership. Identify organizational characteristics that determine the need for and importance of leadership. Strengthen the values and ethics of an organization through leadership. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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What Makes A Leader Effective?
Ability to influence other people Has a vision – ideas or objectives that clarify to others where they should be headed “Sells” the vision by articulating it in a compelling and persuasive manner Encourages followers to establish appropriate implementation activities to support the accomplishment of the vision McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Compare Contrast Leadership Management McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved. 3
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Practices Associated with Leadership by Managers
Planning and organizing Problem solving Clarifying Informing Monitoring Motivating Consulting Recognizing Supporting Managing conflict and team building Networking Delegating Developing and mentoring Rewarding McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Management and Leadership
Control Implementation Narrow Consistency Measurement Get the job done Leadership Inspiration Strategy Breadth Change Establish direction Changing the job
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Power Coercive Power Reward Power Legitimate Power Referent Power
Expert Power McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 3
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Sources of Power Organizational Sources
Formal position – legitimate power – acceptance of power because of position, includes elements of reward and coercive power Flows of information in the organization – anywhere in the hierarchy Control over important resources – supplies, process requests Social relations – being in the right place at the right time Individual Sources Expertise – expert power Interest and tenure Personal characteristics – referent/charismatic power Group Sources Coalitions
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Leadership: Traditional Explanations
Person-based Theories Situational Theories Dispersed Theories Exchange Theories McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Trait Theory “Can-Do” Attitude Desire to Lead Self- Confidence Honesty
and Integrity Intelligence Ambition and Energy McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Behavioral Theories Ohio State University of Michigan
Initiating Structure Ohio State Consideration Employee-Orientation University of Michigan Production-Orientation McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Considerate versus Initiating Structure
Considerate – help with personal problems, consult subordinates, treat as equals – results in higher satisfaction, cooperation, low turnover Initiating Structure – set deadlines, insist procedures be carefully followed, “needle” for greater effort – can lead to higher turnover, lower satisfaction Results concerning the effect of these styles on productivity were mixed and inconsistent
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The Managerial Grid Model
15.5 The Managerial Grid Model High (1,9) (9,9) 9 8 7 6 5 4 3 2 1 Concern for people Country club style Supportive Considerate Team style Super Manager (5,5) Middle-of-the-road style Production pusher Instrumental Impoverished style Laissez-faire Source: R. R. Blake, J. S. Mouton, and L. E. Greiner. Breakthrough in organization development. Harvard Business Review. November-December 1964 (1,1) (9,1) Low Low High Concern for production Adapted from Figure 15.2
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Findings of the Fiedler Model
Good Relationship-Oriented Task-Oriented Performance Poor Favorable Moderate Unfavorable Category Leader-Member Relations Task Structure Position Power I Good High Strong II Weak III Low IV V Poor VI VII VIII McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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The Path-Goal Framework
Environmental Contingencies Leader Behavior Outcomes Subordinate Contingencies McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Path-Goal Model Based partly on the expectancy model – leader should establish clear expectations, goals clarified and defined, satisfaction of employee’s needs contingent on performance, leader as a source of positive outcomes Key Situational Variables Characteristics of the subordinates – internals vs. externals, needs, abilities Task structure – highly structures versus loosely structured
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Path-Goal Model Leadership Styles
Supportive – leader as source of rewards – use where tasks are routine and structured and subordinates are bored and lacking rewards from job Participative – planning, organizing done as a group – use where tasks are ambiguous and subordinates want to interact and be involved Directive/instrumental – planning, controlling, clarification from leader – use where tasks are ambiguous and subordinates expect direction from leader Achievement-oriented – encourage goal setting and planning by individuals – use were tasks are ambiguous, involving, challenging and subordinates are capable and achievement-oriented
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The Managerial Grid Model
15.5 The Managerial Grid Model High (9,9) (1,9) (5,9) Participative 9 8 7 6 5 4 3 2 1 Concern for people Supportive (9,5) Achievement- Oriented (5,5) Instrumental Source: R. R. Blake, J. S. Mouton, and L. E. Greiner. Breakthrough in organization development. Harvard Business Review. November-December 1964 (1,1) (9,1) Low Low High Concern for production Adapted from Figure 15.2
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Dispersed Theories Substitute Leadership:attempts to identify workplace characteristics that can substitute for leadership or neutralize efforts made by a leader Self-Leadership: leadership that stresses the individual responsibility of employees to develop their own work priorities aligned with organizational goals McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Characteristics of Traditional and Self-Managing Behaviors:
Traditional Leader Behaviors Self-Managing Leader Behaviors Organization – Structures own and subordinates work Encourages self-reward Domination – Restricts or limits the discretion of individuals or groups Encourages self-observation Production – Sets standards for task performance Encourages self-goal setting Recognition – Expresses approval or disapproval of behavior Encourages self-criticism Integration – Promotes group cohesion and reduces group conflict Encourages self-rehearsal Communication – Provides, seeks, and exchanges information with group members Acts as a role model by exhibiting appropriate behavior Fosters the development of a culture that nourishes and supports self-leadership McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Exchange Theories Transactional Leadership: leaders who use legitimate, coercive, or reward powers to elicit obedience and attempt to instill in followers the ability to question standard modes of operation Transformational Leadership: leaders who revitalize organizations by instilling in followers the ability to question standard modes of operation Authentic leadership: An approach that emphasizes the importance of a positive directive force, particularly in an environment of increasing complexity, change, and uncertainty McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Characteristics of Transactional and Transformational Leaders
Transactional Leader Contingent reward Management by exception (active) Management by exception (passive) Laissez-Faire Transformational Leader Charisma Inspiration Intellectual stimulation Individualized consideration McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Applications of Management Perspectives—For the Manager
Managers should identify the theories that best fit them and their situations: Some situations call for a strong person to guide the organization through change Other situations may call for the dispersed leadership Uncertainties and difficult times may best match authentic leadership Both management and leadership skills can be positive for employees and the organization; they will also bode well for your own career. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Applications of Management Perspectives—For Managing Teams
Effective teams have a shared vision and a common purpose that comes from leaders. Leadership may come from inside the team itself. The increasing prevalence of empowerment and self-leadership underscores the importance of team members understanding and developing leadership skills. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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Applications of Management Perspectives—For Individuals
Employees are more likely to succeed if they can manage themselves without relying on others to motivate them and define their tasks. Employees can become self-leaders by: Finding opportunities in their work environment. Showing initiative. Encouraging others to do their best. Generating enthusiasm for the tasks at hand. Individuals can apply these leadership theories to the work environments and improve performance, as well as their potential for advancement. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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