1. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-1 Chapter Seventeen Effective Leadership Processes

2. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-2 Learning Objectives Define leadership Present the background and classic studies of leadership Discuss the traditional theories of leadership, including the trait, group and exchange, contingency, and path- goal approaches Identify modern theoretical processes for leadership, such as charismatic, transformational, social cognitive, and substitutes for leadership

3. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-3 Some Characteristics Of Managers Versus Leaders In The Twenty-First Century Manager Characteristics Leader Characteristics Administers A copy Maintains Focuses on systems and structures Relies on control Short-range view Asks how and when Eye on the bottom line Imitates Accepts the status quo Classic good soldier Does things right Innovates An original Develops Focuses on people Inspires trust Long-range perspective Asks what and why Eye on the horizon Originates Challenges the status quo Own person Does the right thing

4. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-4 Summary Of The Three Domains Of Leadership What is leadership? Appropriate behavior of the person in leader role Ability and motivation to manage one’s own performance Trust, respect, and mutual obligation that generates influence between parties What behaviors constitute leadership? Establishing and communicating vision; inspiring, instilling pride Empowering, coaching, facilitating, giving up control Building strong relation- ships with followers; mutual learning and accommodation AdvantagesLeader as rallying point for organization; com- mon understanding of mission and values; can initiate wholesale change Makes the most of follower capabilities; frees up leaders for other responsibilities Accommodates differing needs of subordinates; can elicit superior work from different types of people Leader-BasedRelationship-BasedFollower-Based

5. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-5 Summary Of The Three Domains Of Leadership (cont.) DisadvantagesHighly dependent on leader; problems if leader changes or is pursuing inappropriate vision Highly dependent on follower initiative and ability Time-consuming; relies on long-term relation- ship between specific leaders and members When appropriate? Fundamental change; charismatic leader in place; limited diversity among followers Highly capable and task-committed followers Continuous improvement of teamwork; substan- tial diversity and sta- bility among followers; network building Where most effective? Structured tasks; strong leader position power; member acceptance of leader Unstructured tasks; weak position power; member nonaccept- ance of leader Situation favorability for leader between two extremes Leader-BasedRelationship-BasedFollower-Based

6. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-6 Style of leadership UnfavorableFavorable Very Unfavorable Very Favorable +- Favorableness of the Situation Task- directed Human- oriented, democratic Fiedler’s Contingency Model Of Leadership

7. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-7 A Summary Of Path-Goal Relationships LEADER BEHAVIOR/STYLES Directive Supportive Participative Achievement-oriented SUBORDINATE Perceptions Motivation OUTCOMES Satisfaction Role clarity Goal clarity Performance SUBORDINATE CHARACTERISTICS Locus of control and/or ability ENVIRONMENTAL FORCES Task characteristics Formal authority system Primary work group

8. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-8 Ethical And Unethical Characteristics Of Charismatic Leaders Ethical Charismatic LeaderUnethical Charismatic Leader Uses power to serve others Aligns vision with followers’ needs and aspirations Considers and learns from criticism Stimulates followers to think independently and to question the leader’s view Open, two-way communication Coaches, develops, and supports followers; shares recognition with others Relies on internal moral standards to satisfy organizational and societal interests Uses power only for personal gain or impact Promotes own personal vision Censures critical or opposing views Demands own decisions be accepted without question One-way communication Insensitive to followers’ needs Relies on convenient, external moral standards to satisfy self-interest

9. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 17-9 A Social Cognitive Approach To Leadership LEADER (includes cognition) LEADER BEHAVIORENVIRONMENT (includes subordinates and organizational variables)