1. MANAGEMENT Stephanie Andriani Chapter 17 “LEADERSHIP”
Thieu Thi Anh Tuyet
Marvella
Mi Hao
Stephanie Will
Novita Elisa

2. L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.
Who are Leaders and What is Leadership?
Define leaders and leadership
Explain why managers should be leader
Early Leadership Theories
Discuss what research has shown about leadership traits.
Contrast the findings of the four behavioral leadership theories.
Explain the dual nature of a leader’s behavior.
Contingency Theories of Leadership
Explain how Fiedler’s theory of leadership is a contingency model.
Contrast situational leadership and the leader participation model.
Discuss how path-goal theory explains leadership.

3. L E A R N I N G O U T L I N E (Cont’d) Follow this Learning Outline as you read and study this chapter.
Cutting Edge Approaches to Leadership
Differentiate between transactional and transformational leaders.
Describe charismatic and visionary leadership.
Leadership Issues in the Twenty-First Century
Tell the five sources of leader’s power.
Discuss the issues today’s leaders face.
Explain why leadership is sometimes irrelevant.

4. Who are Leaders and What is Leadership?
Leaders: Someone who can influence others and who has managerial authority.
Leadership: the process of influencing a group to achieve goals.
Leader is not born. Leader is learned!

5. Early Theory

6. Early Leadership Theories
Trait Theories (1920s–1930s)
Research in the 1920s and 1930s, focused on leader traits with the intent to isolate one or more traits that leaders possessed, but that nonleaders did not.
Seven traits associated with effective leadership: Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion.
Research in the 1920s and 1930s focused basically on leader traits with the intent to isolate one or more traits that leaders possessed, but that nonleaders did not.
Identifying a set of traits that would always differentiate leaders from nonleaders proved impossible.
Seven traits associated with effective leadership are described in Exhibit 12.2.
Management

7. Exhibit 17-1 Seven Traits Associated with Leadership
Drive:leader exhibit a high effort level.
Desire to lead: Leaders have a strong desire to influence and lead others.
Honesty and integrity
Self-confidence: Followers look to leaders for an absence of self doubt.
Intelligence: Large information, to create visions, solve problems.
Job-relevant knowledge
Extraversion: Leaders are energetic, lively people.
1. Drive. Leaders exhibit a high effort level. They have a relatively high desire for achievement; they are ambitious; they have a lot of energy; they are tirelessly persistent in their activities; and they show initiative.
2. Desire to lead. Leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility.
3. Honesty and integrity. Leaders build trusting relationships between themselves and followers by being truthful or nondeceitful and by showing high consistency between word and deed.
4. Self-confidence. Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions.
5. Intelligence. Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information, and they need to be able to create visions, solve problems, and make correct decisions.
6. Job-relevant knowledge. Effective leaders have a high degree of knowledge about the company, industry, and technical matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions.
7. Extraversion. Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or withdrawn.
Management

8. Early Leadership Theories (Cont’d)
Behavioral Theory
University of Iowa Studies (Kurt Lewin)
Identified three leadership styles:
Autocratic style: centralized authority, low participation
Democratic style: involvement, high participation, feedback
Laissez-faire style: hands-off management
Research findings: mixed results
No specific style was consistently better for producing better performance
Employees were more satisfied under a democratic leader than an autocratic leader
Behavioural Theories
1. If behaviour studies turned up critical behavioural determinants of leadership, people could be trained to be leaders.
2. Four main leader behaviour studies (see Exhibit 12.3):
A. University of Iowa Studies—Kurt Lewin and associates—studied three leadership styles: autocratic, democratic, and laissez-faire.
Thieu thi anh tuyet

9. Early Leadership Theories (Cont’d)
Behavioral Theory (Cont’d)
Ohio State Studies
Identified two dimensions of leader behaviour
Initiating structure: the role of the leader in defining his or her role and the roles of group members
Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings
Research findings: mixed results
High-high leaders generally, but not always, achieved high group task performance and satisfaction
Evidence indicated that situational factors appeared to strongly influence leadership effectiveness
B. The Ohio State Studies identified two important dimensions of leader behaviour—initiating structure and consideration. A leader who was high in both initiating structure and consideration behaviours (a high-high leader) achieved high group task performance and satisfaction more frequently than one who rated low on either dimension or both.
Management

10. Early Leadership Theories (Cont’d)
Behavioral Theory (Cont’d)
University of Michigan Studies
Identified two dimensions of leader behaviour
Employee oriented: emphasizing personal relationships
Production oriented: emphasizing task accomplishment
Research findings:
Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction
C. University of Michigan Studies identified two dimensions of leader behaviour—employee oriented and production oriented.
Management

11. Early Leadership Theories (Cont’d)
Behavioral Theory (Cont’d)
Managerial Grid
Appraises leadership styles using two dimensions:
Concern for people
Concern for production
D. The managerial grid is a two-dimensional grid for appraising leadership styles using “concern for people” and “concern for production” as dimensions (see Exhibit 12.4).
Leaders can theoretically have one of 81 styles, but the grid identifies five main ones:
Places managerial styles in five categories:
Impoverished management (low on concern for people, low on concern for production)
Task management (low on concern for people, high on concern for production)
Middle-of-the-road management (medium on concern for people, medium on concern for production)
Country club management (high on concern for people, low on concern for production)
Team management (high on concern for people, high on concern for production)
Management

12. Exhibit 17.2 The Managerial Grid
Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.
The managerial grid is a two-dimensional grid for appraising leadership styles using “concern for people” and “concern for production” as dimensions (see Exhibit 12.4).
Management

13. Contingency Theories of Leadership

14. Contingency Theories The Fiedler Model
Hersey and Blanchard’s Situational Leadership Theory (SLT)
Leader Participation Model
Path-Goal Model

15. Contingency Theories (Cont’d)
The Fiedler Model
The effective group performance depends upon the proper match between the leader’s style interacting with the followers.
To define leadership styles and different types of situations and then to identify the appropriate combinations of style and situation.
Use The Least-Preferred Co-worker (LPC) Questionnaire
A questionnaire that measured whether a
leader as task-oriented or relationship-oriented.

16. Contingency Theories (Cont’d)
The Fiedler Model (Cont’d)
Three Contigency Dimensions
Leader-member relations
rated as either good or poor.
Task structure
rated as either high or low.
Position power
rated as either strong or weak.

17. Exhibit 17.3 - Fiedler Model

18. Contingency Theories (Cont’d)
Hersey and Blanchard’s SLT
A leadership contingency theory that focuses on the follower’s readiness.
Four Leadership Styles
Telling (high task-low relationship)
Selling (high task-high relationship)
Participating (low task-high relationship)
Delegating (low task-low relationship)

19. Contingency Theories (Cont’d)
Hersey and Blanchard’s SLT (Cont’d)
Four Stages of Follower Readiness
R1: unable and unwilling.
R2: unable but willing.
R3: able but unwilling.
R4: able and willing.

20. Exhibit 17.4 - Hersey and Blanchard’s SLT Model

21. Contingency Theories (Cont’d)
Leader Participant Model
A leadership contingency model that related leadership behavior and participation in decision making.
Developed by Victor Vroom and Phillip Yetton
Leadership Style in Vroom Leader Participant Model
Decide: decision maker.
Consult individually: ask suggestions from group members individually.
Consult group: ask suggestions from group members in a meeting.
Facilitate: Facilitator, defines problems and boundaries.
Delegate: Group makes the decision within prescribed limits.

22. Contingency Theories (Cont’d)
Path Goal Model
Leader must assist the followers in attaining their goals and to provide the direction needed to ensure that their goals are compatible with the objectives.
House’s Leadership Behaviors:
Directives Leader
Supportive Leader
Participated Leader
Achievement-oriented Leader

23. Exhibit 17.5 – Path Goal Model

24. Contemporary Views on Leadership

25. Transformational-Transactional Leadership
What are transactional leaders?
Leader who guide and motivate their followers in the direction of set goals by clarifying role and task requirement.
What is a transformational leader?
Leaders who inspires followers to transcend their own self-interests for the good of the organization, and who is capable of having an important effect on his followers.
Distinguish transactional and transformational leadership.
Transformational leadership is built on top of transactional leadership.

26. Charismatic-Visionary Leadership
What is charismatic-leadership?
The skills do charismatic leader’s exhibit?
Enthusiastic
Self Confidence
Action influence people to behave in certain ways
What is visionary leadership?
What skills do visionary leader’s exhibit?
Ability to explain the vision to others.
Ability to express the vision not just verbally but through behavior.
Ability to extend to apply the vision to different leadership contexts.

27. Team Leadership What is team leadership?
How to become an effective team leader?
Have the patience to share information
Being able to trust other to give up authority
Understanding when to intervene
Have mastered the difficulties balancing act of knowing when to leave and involve their team
Some priorities entail four specific leadership roles
Liaisons with external constituencies
Troubleshooters
Conflict managers
Coaches

28. LEADERSHIP IN 21ST CENTURY

29. LEADERSHIP ISSUE IN 21ST CENTURY
Managing Power
Legitimate power
The power a leader has as a result of his or her position.
Coercive power
The power a leader has to punish or control.
Reward power
The power to give positive benefits or rewards.
Expert power
The influence a leader can exert as a result of his or her expertise, skills, or knowledge.
Referent power
The power of a leader that arise because of a person’s desirable resources or admired personal traits.

30. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)
Developing Credibility and Trust
Credibility
The assessment of a leader’s honesty, competence, and ability to inspire by his or her followers
Trust
The belief of followers and others in the integrity, character, and ability of a leader.
Dimensions of trust: integrity, competence, consistency, loyalty, and openness.
Trust is related to increases in job performance, organizational citizenship behaviors, job satisfaction, and organization commitment.

31. Exhibit 17-6 Suggestion for Building Trust
Practice openness. Be fair. Speak your feelings. Tell the truth. Show consistency. Fulfill your promises. Maintain confidences. Demonstrate competence.

32. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)
Providing Ethical Leadership
Ethics are part of leadership when leaders attempt to:
Foster moral virtue through changes in attitudes and behaviors.
Use their charisma in socially constructive ways.
Promote ethical behavior by exhibiting their personal traits of honesty and integrity.
Moral leadership:
Involves addressing the means that a leader uses to achieve goals as well as the moral content of those goals.

33. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)
Providing Online Leadership
Focusing on managing virtual teams using the development of technology.
There are also challenges in providing online leadership : communication, performance management and trust.

34. Challenges in Providing Online Leadership
Communication
leader may need to learn new communication skills because the communication by using technology is different from using face to face communication
Managing Performance
It can be done by defining, facilitating and encouraging it.
Define : direct the employees
Facilitate : reducing or eliminating obstacles to successful performance and providing adequate resources to get the job done
Encouraging : providing sufficient rewards that virtual employees really value

35. Challenges in Providing Online Leadership
Trust issue
Whether the system is being used to monitor and evaluate employees
It is more important to create a culture where trust among all participants is expected and required
The five dimensions of trust is integrity, competence, consistency, loyalty and openness

36. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)
Empowerment
Involves increasing the decision-making discretion of workers such that teams can make key operating decisions in develop budgets, scheduling workloads, controlling inventories, and solving quality problems.
Why empower employees?
Quicker responses problems and faster decisions.
Address the problem of increased spans of control in relieving managers to work on other problems.

37. “An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success.”
Stephen R. Covey, Principle-centered Leadership

38. LEADERSHIP ISSUES IN 21st CENTURY (con’t)
Cross-Cultural Leadership
Leadership style based on national culture
The universal appeal of these transformational leader characteristics is due to pressure toward common technologies and management practices as a result of global competitiveness and multinational influences

39. LEADERSHIP ISSUES IN 21st CENTURY (con’t)
Gender Differences and Leadership
“Do males and females lead differently? ” accurately characterized as a purely academic issue interesting but not relevant.
A number of studies focusing on gender and leadership style have been conducted in recent years.

40. LEADERSHIP ISSUES IN 21st CENTURY (con’t)
Gender Differences in Leadership Styles
Women tend to adopt a more democratic or participative style and a less autocratic or directive style than men do
Women are more like encourage participation, share power ad information and attempt to enhance followers self worth
Men are more likely to use a directive command and control styles
Men rely on the formal authority of their position for their influence base
Men use transactional leadership, handing
out rewards for good work and punishment
for bad

41. Exhibit 17-11 Where Female Managers Do Better: A Scorecard
Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November , p. 75.
None
of the five studies set out to find gender differences. They stumbled on them while
compiling and analyzing performance evaluations.
Skill
(Each check mark denotes which group
scored higher on the respective studies)
* In one study, women’s and men’s scores in these categories were statistically even.
MEN
WOMEN
Motivating Others
Fostering Communication
Producing High-Quality Work
Strategic Planning
Listening to Others
Analyzing Issues *
Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, Personnel
Decisions International Inc., Advanced Teamware Inc.

42. LEADERSHIP ISSUES IN 21st CENTURY (con’t)
The Demise of Celebrity Leadership
Business leader seem to be losing their luster.
Demise have two factors :
That obviously has contributed to this shift of opinion is the publicity from ongoing ethical ad financial scandals at both for profit and nonprofit organizations around the world.
The controversy surrounding executive pay.

43. Example of a CEO Mr. Sudhamek Agoeng Wospodo Soejoto,
CEO of Garuda Food Company

44. Some suggestions CEO need to back to the basics of what it means to be a Leader
Give people a reason to come to work.
Be loyal to the organization’s people
Spend time with people who do the real work for the organization.
Be more open and more candid about what business practices are acceptable and proper and how the unacceptable ones should be fixed.

45. LEADERSHIP ISSUES IN 21st CENTURY (con’t)
Substitutes for Leadership
Some situations, any behaviors a leader exhibits are irrelevant.

46. Becoming a Manager
As you interact with various organizations, note the different styles used by the leaders in those organizations.
Thinks of people that you would consider effective leaders and try to determine why they’re effective.
If you have the opportunity, take the leadership development course.
Practice building trust in relationship that you have with others.
Read the books on great leaders (not just business leaders) and on leadership development topics

48. Terms to Know Leader Visionary leader Jargon Leadership
Charismatic leadership
Gender Differences and Leadership
Traits Theory
Team leadership
The Demise of Celebrity Leadership
Behavioral Theory
Legitimate Power
Managerial Grid
Coercive Power
Substitutes for a Leadership
Fiedler Model
Reward Power
LPC Questionnaire
Expert Power
SLT
Referent Power
Leader Participant Model
Credibility
Trust
Path-Goal Model
Ethical leadership
Transformational leadership
Moral leadership
Online Leadership
Transactional leadership
Abbreviation
Emoticons

49. Starring ~THANK YOU~ Teacher Class Captain Speakers Class
T. Manivasugen Hafid Pradipta Thieu Thi Anh Tuyet Marvella Mi Hao Stephanie Andriani Stephanie Will Novita Elisa Management Class 1
~THANK YOU~