1. Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leadership Chapter 15

2. 15-2 Learning Objectives ■ Define the term leadership ■ Discuss the trait approach to leadership ■ Describe two major behavior approaches to leadership ■ Explain what situational approaches are and describe several significant ones ■ Identify a number of substitutes for leadership

3. 15-3 Introduction Research focuses on two key leadership issues Why some organizational members become leaders, while others do not Why some leaders are successful, while others are not

4. 15-4 What is Leadership? There is no consensus on what leadership is ■ Leadership qualities important in one situation may not be required in another Variables with which every leader must deal ■ The people who are being led ■ The task the people are performing ■ The environment in which the people and task exist

5. 15-5 What is Leadership? The process of influencing others to facilitate the attainment of the organization’s goals A formal leadership position is not needed to exert leadership behavior Informal leaders can be just as important to a group’s success as is the formal leader

6. 15-6 What is Leadership? Virtually all leaders of effective groups ■ Provide direction and meaning to followers ■ Generate trust ■ Favor action and risk taking ■ Are purveyors of hope

7. 15-7 Is Leadership Important? Leaders can make a difference in end results ■ The specific behaviors used to do this are ambiguous ■ Evidence of the effect of leadership on performance is modest Even at the highest levels, leaders do not have unilateral control over resources and external factors

8. 15-8 Is Leadership Important? Self-managing teams Empowerment teams Bosses are often replaced with teams, but no successful team is without leadership Autonomous work groups No successful team is without leadership

9. 15-9 Trait Approaches The trait theory of leadership ■ An attempt to identify specific characteristics associated with leadership success ■ Characteristics can be physical, mental, or personality

10. 15-10 Trait Approaches Intelligence Physical Characteristics Personality Supervisory Ability

11. 15-11 Trait Approaches Trait test scores aren’t consistently predictive of leader effectiveness Leadership traits don’t operate singly, but in combination The list of important traits is endless Patterns of effective behavior depend largely on the situation Reasons For Trait Theory Contradictory Research Findings

12. 15-12 Behavioral Approaches Employee-centered Leaders Focus on the people doing the work Delegate decision making Satisfy employee needs Creative a supportive work environment Job-centered Leaders Focus on completing the task Use close supervision to ensure subordinates perform tasks using specified procedures

13. 15-13 Initiating Structure and Consideration Initiating structure ■ The leader organizes and defines relationships in the group ■ Establishes well-defined patterns and channels of communication ■ Spells out ways of getting the job done Consideration ■ Behavior indicating friendship, trust, respect, warmth, and rapport between leaders and followers

14. 15-14 Initiating Structure and Consideration The linkage between consideration and initiating structure is complex ■ Those scoring high on initiating structure had more employee grievances, but received higher proficiency ratings ■ Those with a high consideration score received lower proficiency ratings, but had fewer subordinate absences

15. 15-15 Trait and Behavioral Approaches Behaviors and characteristics, helpful or essential in some situation, are unimportant in others These approaches fail to consider the interaction among people, tasks, and environments Trait and behavioral approach shortcomings

16. 15-16 Situational Approaches Each model has its advocates Each tries to identify the leader behaviors most appropriate for a series of situations Each tries to identify the leader-situation patterns or interactions for effective leadership Situational theories suggest that leadership effectiveness is a function of the situation

17. 15-17 Situational Approaches Contingency Leadership Model (Fiedler) ■ Group performance depends on the interaction between leadership style and situational favorableness ■ Leadership style measured by the Least- Preferred Coworker Scale (LPC) Situational favorableness ■ Leader-member relations ■ Task structure ■ Position Power

18. 15-18 Summary of Fielder’s Variables & Styles

19. 15-19 Leadership Actions to Change Situations To modify leader-member relations ■ Request particular people for work in the group ■ Transfer subordinates out of the unit ■ Volunteer to direct difficult or troublesome subordinates To modify task structure ■ Introduce new or unusual tasks/problems ■ Break jobs down into smaller subtasks that can be more highly structured

20. 15-20 Leadership Actions to Change Situations To modify position power Show subordinates who is boss by exercising fully the authority you have Make sure that information to the group gets channeled through you Let subordinates participate in planning and decision making

21. 15-21 Vroom-Jago Leadership Model Vroom and Yetton assumptions ■ The model should help managers determine which leadership style to use in various situations ■ No single style is applicable to all situations ■ Focus should be on the problem to be solved and the situation in which it occurs ■ The leadership style used in one situation should not constrain the styles used in other situations ■ Social processes influence the amount of participation by subordinates in problem solving

22. 15-22 Vroom-Jago Leadership Model Key Components of the Vroom-Jago Model Specifies the criteria by which decision effectiveness is judged Framework for describing specific leader behaviors or styles Diagnostic variables that describe key aspects of the leadership situation

23. 15-23 Vroom-Jago Leadership Model Decision effectiveness is based on decision quality and subordinate commitment ■ Decision quality: the extent to which the decision impacts job performance ■ Subordinate commitment: how important it is that subordinates be committed to or accept the decision ■ May also be influenced by time constraints

24. 15-24 Vroom-Jago Decision Styles DelegatedAutocratic Group Consultative

25. 15-25 Vroom-Jago Diagnostic Procedure Perform a situational diagnosis by asking a series of questions ■ How important is the technical quality of the decision? ■ How important is subordinate commitment to the decision? ■ Do you have sufficient information to make a good decision? ■ Is the problem well structured? ■ And so on…

26. 15-26 Path-Goal Leadership Model Leaders are effective because of their positive impact on followers’ ■ Motivation, ability to perform, and satisfaction Leaders influence followers’ perceptions of ■ Work goals ■ Self-development goals ■ Paths to goal attainment

27. 15-27 Path-Goal Leadership Model Leader Behavior ■ Directive ■ Supportive ■ Participative ■ Achievement- oriented Leader Behavior ■ Directive ■ Supportive ■ Participative ■ Achievement- oriented Situational Variables ■ Personal characteristics of subordinates ■ Environmental pressures and demands Situational Variables ■ Personal characteristics of subordinates ■ Environmental pressures and demands

28. 15-28 Revised Path-Goal Leadership Perspective

29. 15-29 Situational Leadership Theory Hersey and Blanchard developed an appealing situational leadership theory ■ Advocates that managers understand their own behavior ■ Emphasizes followers and their level of maturity Leaders must use a leadership style that matches the followers’ maturity level ■ Job readiness ■ Psychological readiness

30. 15-30 Situational Leadership Theory Proposed Leadership Styles Telling SellingParticipating Delegating

31. 15-31 Situational Leadership Theory

32. 15-32 Comparing Situational Approaches Similarities between the situational leadership models ■ All focus on the dynamics of leadership ■ All have stimulated research on leadership ■ All remain controversial because of measurement problems, limited research testing, or contradictory research results

33. 15-33 Comparing Situational Approaches

34. 15-34 Other Perspectives, Concepts, Issues of Leadership Charismatic Leaders ■ John F. Kennedy, Winston Churchill, Sam Walton, and Walt Disney were charismatic leaders Charisma enables leaders to motivate followers to achieve outstanding performance ■ People who take on hero qualities gain charisma ■ A charismatic leader creates motivation based on an emotional commitment to, and identity with, his/her vision, philosophy, and style

35. 15-35 Defining Charismatic Leadership Charisma Greek word meaning “gift” Combination of charm and personal magnetism

36. 15-36 Two Types of Charismatic Leaders Visionary Through communication ability, links followers’ needs and goals to job or organizational long-term goals and possibilities Crisis-Based Focus is on the short-term Has an impact in situations where existing resources, knowledge, and procedures are inadequate

37. 15-37 Transactional Leadership Helps followers identify what must be done to achieve desired results Takes followers’ self-concept and esteem needs into consideration Uses path-goal concepts Relies on contingent rewards and management by exception

38. 15-38 Transactional Leadership Transactional leadership is not often found in organizational settings ■ The majority of workers do not feel that good pay is contingent on good performance Leaders must learn to… ■ Understand what employees want ■ Administer rewards in a timely manner ■ Emphasize the pay-performance link

39. 15-39 Transactional Leadership

40. 15-40 The Transformational Leader Goals instead of short-term self-interest Achievement and self-actualization instead of security Motivates followers to work for… The employees’ reward is internal

41. 15-41 The Transformational Leader To achieve their vision, transformational leaders make major changes in the ■ Mission ■ Way of doing business ■ Human resource management ■ Philosophy, system, and culture of an organization

42. 15-42 The Transformational Leader Bass identified five factors that describe transformational leaders ■ Charisma (transformational) ■ Individual attention (transformational) ■ Intellectual stimulation (transformational) ■ Contingent reward (transactional) ■ Management by exception (transactional)

43. 15-43 Coaching Everyday interaction of helping another employee improve his or her understanding of the work in order to improve performance

44. 15-44 Coaches Comes in all varieties Knows reward- performance feedback Leader skills, experience, abilities Aren’t always linked to seniority Talent for observing and decision making Nonjudgmental Exceptional communication ability

45. 15-45 Coaching Coaching hints ■ Observe the detail ■ Develop the person’s strengths ■ Work to improve people, not change them ■ Require continual improvement ■ Pace the person ■ Believe you can be the best

46. 15-46 Recommended Coaching Techniques Practice active listening Support learning with action & reflection Move from easy to hard skills Set goals Provide tactful feedback, positive and negative

47. 15-47 Servant Leadership The servant leader ■ Emphasizes employee growth and service to others as worthwhile ends in and of themselves ■ Places other’s needs in front of their own

48. 15-48 Multicultural Leadership A leader’s personality, efforts, or style may conflict with the context of the environment ■ Bass found that leadership attributes linked with effective leadership vary across cultures ■ Employees who rank high on power distance prefer an autocratic leader ■ Employees low in power distance prefer a participative style of leadership

49. 15-49 Factors Linked to Leadership Effectiveness ■ Preferred awareness ■ Actual awareness ■ Submissiveness to rules and authority ■ Reliance on others ■ Favoring of group decision making ■ Concern for human relations ■ Cooperative peer relations

50. 15-50 Multicultural Leadership The complexity of a global environment requires the careful study of ■ The culture ■ History ■ Expectations ■ Working environments

51. 15-51 Substitutes for Leadership Substitute variables tend to negate the leader’s ability to either increase or decrease followers’ satisfaction or performance Task, organizational, or subordinate characteristics can render leadership impossible or unnecessary (leadership neutralizer)

52. 15-52 Substitutes for Leadership Cohesive work groups Intrinsically satisfying tasks High levels of subordinate ability, experience, and knowledge