2. 12 Leadership McGraw-Hill/Irwin Management, 7/e
Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

3. Learning Objectives After Studying Chapter 12, You will Know
What it means to be a leader.
What people want and organizations from leaders.
How a good vision helps you be a better leader.
How to understand and use power.
The personal traits and skills of effective leaders.
The behaviors that will make you a better leader.
What it means to be a charismatic and transformational leader.
The many types of opportunities to be a leader in an organization.
How to further your own leadership development.

4. What Do We Want from Our Leaders?
They want help in achieving their goals; which includes
Support for their development
Clearing obstacles so they can perform at high levels
Treatment that is respectful, fair and ethical
This is not only about pay and promotions
Leaders throughout the organization are needed to do the things that their people want, but also to help create and implement strategic direction

5. Key Leadership Behaviors
According to James Kouzes and Barry Posner, the best leaders:
Challenge the process – they challenge conventional beliefs and practices, and they create change
Inspire a shared vision – they appeal to people’s values and motivate them to care about an important mission
Enable others to act – they give people access to information and give them the power to perform to their full potential
Model the way – they are living examples of the ideals they believe in
Encourage the heart – they show appreciation, provide rewards and use various approaches to motivate people in positive ways

6. Vision
Vision is a mental image of a possible and desirable future state of the organization
It expresses the leader’s ambitions for the organization
Vision is necessary for effective leadership
A person or team can develop a vision for any job, work unit, or organization
Many people who do not develop into strong leaders, do not develop a clear vision

7. Vision
Visions must be clear so that people know what they are working toward
Visions can fail for a number of reasons
An inappropriate vision may reflect merely the leader’s personal needs
An inappropriate vision may ignore stakeholder needs
The vision may not take environmental changes into account
A metaphor reinforces the important concept of vision. Putting a jigsaw puzzle together is much easier if you have the picture on the box cover in front of you. Without the picture, or vision, the lack of direction is likely to result in frustration and failure. That is what communicating a vision is all about: making it clear where you are heading.

8. Leading and Managing Management will Leaders will
deal with the ongoing day-to-day complexities of organizations
Plan and budget routines
Structure the organization, staff it with capable people, and monitor activities
Leaders will
Effectively orchestrating important change
Set the direction for the firm
Inspire people to attain the vision
Keep people focused on moving the organization toward its ideal future, motivating them to overcome whatever obstacles lie in the way
Effective managers are not necessarily true leaders. Many administrators, supervisors, and even top executives execute their responsibilities successfully without being great leaders. But these positions afford opportunity for leadership. The ability to lead effectively, then, will set the excellent managers apart from the average ones.

9. Leading and Managing
Highlighting the need for leadership is not to minimize the importance of management or manager
Leadership involves unique processes that are distinguishable from basic management process
Just because they involve different processes does not mean that they require different, separate people

10. Leading and Managing
Rather than try to distinguish between management and leadership it might be more effect to discuss strategic and supervisory leadership
Supervisory leadership is behavior that provides guidance, support, and corrective feedback for day-today activities
Strategic leadership gives purpose and meaning to organizations

11. Leading and Following
Organizations succeed or fail not only because of how well they are led but because of how well followers follow
Good followers help produce good leaders
The most effective followers are capable of independent thinking and at the same time are actively committed to organizational goals
Good followership doesn’t mean merely obeying orders (although some bosses may view it that way). Effective followers also distinguish themselves from ineffective ones by their enthusiasm and commitment to the organization and to a person or purpose—an idea, a product—other than themselves or their own interests. They master skills that are useful to their organizations, and they hold performance standards that are higher than required. Effective followers may not get the glory, but they know their contributions to the organization are valuable. And as they make those contributions, they study leaders in preparation for their own leadership roles.

12. Power and Leadership Central to effective leadership is power
Power is the ability influence others
Leaders have five important potential sources of power
Legitimate power means that the leader has the right, or authority to tell others what to do
Reward power means the leader influences others because she controls valued rewards
Coercive power means the leader has control over punishments
Referent Power means the leader has personal characteristics that appeal to others
Expert Power means the leader has certain expertise or knowledge

13. Sources of Power

14. Traditional Approaches to Understanding Leadership
There are three traditional approaches to studying leadership
Trait approach is a perspective that attempts to determine the personal characteristics that great leaders share
Behavioral approach is a perspective that attempts to identify what good leaders do – that is what behaviors they exhibit
Situational approach is a perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation

15. Leader Traits
Drive – this refers to a set of characteristics that reflect a high level of effort; it includes high need for achievement, striving for improvement, ambition, energy tenacity, and initiative
Leadership motivation – refers to the fact that great leaders no only have drive they also want to lead; extraversion is considered important for this area
The trait approach is the oldest leadership perspective; it focuses on individual leaders and attempts to determine the personal characteristics (traits) that great leaders share. What set Winston Churchill, Alexander the Great, Gandhi, and Martin Luther King apart from the crowd? The trait approach assumes the existence of a leadership personality and assumes that leaders are born, not made.

16. Leader Traits
Integrity – refers to the correspondence between actions and words; honesty and credibility are especially important for leaders
Self-confidence – this allows a leader to overcome obstacles, make decisions despite uncertainty, and instill confidence in others
Knowledge of the business – effective leaders have a high level of knowledge about their industries, companies, and technical matters

17. Leader Behaviors
Task performance – actions taken to ensure that the work group or organization reaches its goals
Group maintenance – actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group
The behavioral approach to leadership attemps to identify what good leaders do.
Should leaders focus on getting the job done or on keeping their followers happy?
Should they make decisions autocratically or democratically? In the behavioral approach, personal characteristics are considered less important than the actual behaviors leaders exhibit. Three general categories of leadership behavior have received particular attention: behaviors related to task performance, group maintenance, and employee participation in decision making.

18. Leader Behaviors

19. Participation in Decision Making
Participation in decision making describes how managers perform in involving their employees in making decisions
Autocratic leadership – a form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group
Democratic leadership – a form of leadership in which the leader solicits input from subordinates

20. The Effects of Leader Behavior
Decision styles – a democratic approach resulted in the most positive attitudes, whereas an autocratic approach resulted n somewhat higher performance
Performance and Maintenance Behaviors
Maintenance behaviors (consideration) lead to fewer grievances and less turnover
Performance behavior (initiating structure) tends to lead to more grievances and higher turnover rates
How the leader behaves influences people’s attitudes and performance. Studies of these effects focus on autocratic versus democratic decision styles or on performance- versus maintenance-oriented behaviors.

21. Situational Approaches to Leadership
Proponents of this approach believe that effective leader behaviors vary from situation to situation
The leader should first analyze the situation and then decide what to do
A head nurse in a hospital described her situational approach to leadership: “My leadership style is a mix of all styles. In this environment I normally let people participate. But in a code blue situation where a patient is dying I automatically become very autocratic: ‘You do this; you do that; you, out of the room; you all better be quiet; you, get Dr. Mansfield.’ The staff tell me that’s the only time they see me like that. In an emergency like that, you don’t have time to vote, talk a lot, or yell at each other. It’s time for someone to set up the order. “I remember one time, one person saying, ‘Wait a minute, I want to do this.’ He wanted to do the mouth to- mouth resuscitation. I knew the person behind him did it better, so I said, ‘No, he does it.’ This fellow told me later that I hurt him so badly to yell that in front of all the staff and doctors. It was like he wasn’t good enough. So I explained it to him: that’s the way it is. A life was on the line. I couldn’t give you warm fuzzies. I couldn’t make you look good because you didn’t have the skills to give the very best to that patient who wasn’t breathing anymore.”

22. Situational Factors for Problem Analysis
Decision significance: The significance of the decision to the success of the project
Importance of commitment: The importance of team members’ commitment to the decision
Leader’s expertise: Your knowledge or expertise in relation to this problem

23. Situational Factors for Problem Analysis
Likelihood of commitment: the likelihood that the team would commit itself to a decision that you might make on your own
Group support for objectives: The degree to which the team supports the organization’s objectives at stake in this problem
Group expertise: Team Members’ knowledge or expertise in relation to this problem
Team competence: The ability of team members to work together in solving problems

24. Vroom Model of Leadership
The Vroom model emphasizes the participative dimension of leadership
There are five leader decision styles
Decide: the leader makes the decision alone
Consult individually: The leader presents the problem to the group members individually for suggestions and then makes the decision
Consult the group: the leader presents the problem to the group members in a meeting for suggestions and then makes the decision

25. Vroom Model of Leadership
The five leader decision styles continued
Facilitate – the leader presents the problem to the group in a meeting and then acts as a facilitator to define the problem to be solved
Delegate: The leader permits the group to make the decision within prescribed limits

26. Path-Goal Theory Key situational factors are
Personal characteristics of followers
Environmental pressures and demands with which followers must cope to attain their work goals
Four pertinent leadership behaviors
Directive leadership – a form of task performance-oriented behavior
Supportive leadership - a form of group maintenance-oriented behavior
Participative leadership
Achievement-oriented leadership – behaviors geared toward motivating people
Perhaps the most comprehensive and generally useful situational model of leadership effectiveness is path-goal theory. Developed by Robert House, path-goal theory gets its name from its concern with how leaders influence followers’ perceptions of their work goals and the paths they follow toward goal attainment. These situational factors and leader behaviors are merged and shown on the next slide. As you can see, appropriate leader behaviors—as determined by characteristics of followers and the work environment—lead to effective performance.

27. Path-Goal Theory Three follower characteristics
Authoritarianism – the degree to which individuals respect, admire, and defer to authority
Locus of control – the extent to which individuals see the environment as responsive to their own behavior
Ability – an individuals belief about their own ability to do an assigned job
The theory also specifies which follower and environmental characteristics are important. There are three key follower characteristics.

28. Charismatic Leadership
Charismatic leaders are people who are dominate, self-confident, convinced of the moral righteousness of their beliefs, and able to arouse a sense of excitement and adventure in followers
Martin Luther King had a dream for a better world, and John F. Kennedy spoke of landing a human on the moon. In other words, such leaders have a compelling vision. The charismatic leader also arouses a sense of excitement and adventure. He or she is an eloquent speaker who exhibits superior verbal skills, which helps communicate the vision and motivate followers. Walt Disney mesmerized people with his storytelling, had enormous creative talent, and instilled in his organization strong values of good taste, risk taking, and innovation.

29. Transformational Leadership
The transformational leader motivates people to transcend their personal interests for the good of the group
The transformational process moves beyond the more traditional transactional approach to leadership
Transactional leaders manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered

30. Transformational Leadership
Transformational leaders generate excitement through their charisma, giving followers individualized attention, and being intellectually stimulating
At least four skills or strategies contribute to transformational leadership
Having a vision
Communicating the vision
Building trust
Having a positive self-regard

31. Transformational Leadership
Transformation leaders have a positive impact on followers’ personal development
Level 5 leadership is considered, by some, the ultimate leadership style
It is a combination of strong professional will and humility that builds enduring greatness
It requires that the leader exhibit a combination of transactional and transformational styles

32. Authenticity
Authentic leadership is rooted in the ancient Greek philosophy ‘To thine own self be true’
Authentic leaders strive for authenticity in the form of honesty, genuineness, reliability, integrity, and trustworthiness
Authentic transformational leaders care about public interests not just own

33. Opportunities for Leaders
The leader’s job is to create an environment in which each person can figure out what needs to be done and then do it well
This perspective creates a number of nontraditional leadership roles
Servant leaders are those who serve others’ needs while strengthening the organization
Bride leaders are those who bridge conflicting value systems or different cultures
A common view of leaders is that they are heroes. Phenomenally talented, they step forward in difficult times and save the day. But in these complex times, it is foolhardy to assume that a great top executive can solve all problems alone. Arnold Schwarzenegger isn’t going to step in and make things right. Effective leadership must permeate the organization, not reside in one or two superstars at the top.

34. Opportunities for Leaders
Nontraditional leadership roles continued
Shared leadership occurs when people rotate through the leadership role based on which person has the most relevant skills at a particular time
Lateral leadership is a style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving

35. A Note on Courage
Acts of courage required to fulfill your vision will include:
Seeing things as they are and facing them head-on
Saying what needs to be said to those who need to hear it
Persisting despite resistance, criticism, abuse, and setbacks
To be a good leader, you need the courage to create a vision of greatness for your unit; identify and manage allies, adversaries, and fence sitters; and execute your vision, often against opposition. This does not mean you should commit career suicide by alienating too many powerful people; it does mean taking reasonable risks, with the good of the firm at heart, in order to produce constructive change.

36. Developing Your Leadership Skills
How did great leaders develop leadership skills?
‘By taking risks, trying, and learning from my mistakes.’
‘Lots of practice.’
‘By making mistakes myself and trying a different approach.’
‘By purposely engaging with others to get things done.’
As with other things, you must work at developing your leadership abilities. Great musicians and great athletes don’t become great on natural gifts alone. They also pay their dues by practicing, learning, and sacrificing. Leaders in a variety of fields, when asked how they became the best leader possible, offered the following comments on this slide. The picture is of contestant from the TV Show the Apprentice. Do they possess the leadership skills to make it?

37. How Do I Start?
Think about your potential employer and look at how it develops leadership talent
Seek developmental experiences like:
Assignments to build something from nothing or to turn around a failing operation
Have exposure to positive role models and work with people of divers backgrounds
Hardships will teach you numerous things, what can you learn from current hardships
Other developmental events include formal courses, job experiences, and supervision experiences

38. What Are the Keys?
The most effective developmental experiences have three components
Assessment – where you are now, your strengths, leadership effectiveness, and primary development needs
Challenge – they will stretch you by challenging the way you think and behave
Support – others will value your efforts to learn and grow

39. Looking Ahead Chapter 13 Motivating for Performance
The kinds of behaviors managers need to motivate in people.
How to set challenging, motivating goals.
How to reward good performance properly.
The key beliefs that affect people’s motivation.
The ways in which people’s individual needs affect their behavior.
How to create a motivating, empowering job.
How people assess fairness and how to achieve fairness.
The causes and consequences of a satisfied workforce.