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2. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 2 Leadership - Key Terms Leadership: The exercise of influence by one member of a group or organization over other members to help the group or organization achieve its goals. Leader: An individual who is able to influence group or organizational members to help the group or organization achieve its goals.

3. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 3 Leadership - Key Terms Formal Leader: A member of an organization who is given authority to influence other organizational members to achieve organizational goals. Informal Leader: An organizational member with no formal authority to influence others, but who has special skills or talents to influence others.

4. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 4 Approaches to Understanding Effective Leadership Trait Approach Behavior Approach Fiedler’s Contingency Model Path-Goal Theory Vroom and Yetton Model Leader-Member Exchange Theory

5. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 5 Trait Theory Intelligence Task-Relevant Knowledge Dominance Self-Confidence Energy/Activity Levels Tolerance for Stress Integrity and Honesty Emotional Maturity

6. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 6 Trait Theory - Criticisms For at least some traits, it is not clear which comes first, being in a leadership position or possessing the trait in question. The trait approach provides little guidance concerning what advice or training to give current or soon-to-be leaders.

7. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 7 The Behavior Approach Consideration: Behavior indicating that a leader trusts, respects, and values good relationships with his or her followers. Initiating Structure: Behavior that a leader engages in to make sure that work gets done and subordinates perform their jobs acceptably.

8. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 8 The Behavior Approach Leader Reward Behavior: A leader’s positive reinforcement of subordinates’ desirable behavior. Leader Punishing Behavior: A leader’s negative response to subordinates’ undesired behavior.

9. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 9 The Behavior Approach - Criticisms The relationship between leader behaviors and subordinate performance and satisfaction are not necessarily clear-cut. The Behavior Approach ignores the situation in which leadership takes place.

10. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 10 Advice to Managers Make sure you know and understand the work that your subordinates perform. Also make sure any subordinates who are leaders have the appropriate task-relevant knowledge.

11. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 11 Advice to Managers Seek outside help, perhaps from an executive coach, if you are having trouble relating to your subordinates. Signs of trouble include frequent conflicts or disagreements or your subordinates avoiding you, withholding information from you, or acting fearful in your presence.

12. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 12 Advice to Managers Vary your leadership behavior according to the situation, and instruct any subordinates who are leaders to do the same. Do not require them to always engage in certain leadership behaviors such as initiating structure or consideration.

13. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 13 Advice to Managers Whenever possible, use reward behavior instead of punishing behavior, and instruct your subordinates who are leaders to do the same.

14. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 14 Fiedler’s Contingency Theory The theory that leader effectiveness is determined by both the personal characteristics of leaders and by the situation in which leaders find themselves.

15. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 15 Fiedler's’ Situational Characteristics Leader-Member Relations - The relationship between a leader and his or her followers. Task Structure - The extent to which the work to be performed by a group is clearly defined. Position Power - The amount of formal authority a leader has.

16. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 16 Fiedler’s Theory An evaluation of the three situational characteristics will suggest that either a relationship-oriented leadership style or a task-oriented leadership style is best.

17. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 17 FIGURE 12.2 Favorability of Situations for Leading Source: Adapted from F. E. Fiedler, A Theory of Leadership Effectiveness (New York: McGraw-Hill, 1967). Reprinted with permission.

18. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 18 Relationship-Oriented Leadership Style Best in situations where the first priority is to develop good relationships with subordinates and the second priority is to get the job done.

19. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 19 Task-Oriented Leadership Style Best in situations where the first priority is getting the job done and the second priority is developing good relationships with subordinates.

20. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 20 Advice to Managers Do not expect leaders to change their leader style from task-oriented to relationship- oriented or vice versa. Assign task-oriented leaders to very unfavorable or to very favorable situations. Assign relationship-oriented leaders to moderately favorable situations.

21. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 21 Advice to Managers If you or one of your subordinates is a relationship-oriented leader in a very unfavorable situation, try to increase the favorability of the situation by improving leader-member relations, increasing task structure by clarifying goals or ways to achieve goals, or raising levels of position power.

22. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 22 Path-Goal Theory A theory which describes how leaders can motivate their followers to achieve group and organizational goals and the kinds of behaviors leaders can engage in to motivate followers.

23. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 23 Path-Goal Theory Effective leaders motivate their followers to achieve group and organizational goals. Effective leaders make sure that they have control over outcomes their subordinates desire.

24. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 24 Path-Goal Theory Effective leaders reward subordinates for performing at a high level or achieving their work goals by giving them desired outcomes. Effective leaders raise their subordinates’ beliefs about their ability to achieve their work goals and perform at a high level.

25. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 25 Path-Goal Theory In determining how to treat their subordinates and what behaviors to engage in, effective leaders take into account their subordinates’ characteristics and the type of work they do.

26. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 26 Path-Goal Theory Directive Behavior Supportive Behavior Participative Behavior Achievement-Oriented Behavior

27. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 27 Vroom and Yetton Model A model that describes the different ways in which leaders can make decisions and guides leaders in determining the extent to which subordinates should participate in decision making.

28. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 28 Vroom and Yetton Model Autocratic (A) - The leader makes the decision without input from subordinates. Consultative (C) - Subordinates have some input, but the leader makes the decision. Group (G) - The group makes the decision; the leader is just another group member.

29. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 29 Vroom and Yetton Model Delegated (D) - The leader gives exclusive responsibility to subordinates.

30. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 30 Leader-Member Exchange Theory A theory that describes the different kinds of relationships that may develop between a leader and a follower and what the leader and the follower give to and receive back from the relationship.

31. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 31 FIGURE 12.4 Leader-Member Exchange Theory

32. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 32 Advice to Managers Determine what outcomes your followers are trying to obtain from their jobs, and make sure that you have as much control as possible over those outcomes. Distribute desired outcomes to your subordinates when they attain their work goals and perform at a high level.

33. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 33 Advice to Managers Raise your followers’ expectations by clarifying how they can attain their work goals, removing obstacles that hamper goal attainment and high performance, and expressing confidence in their ability to succeed. Tailor your leadership behaviors to the characteristics of your subordinates and to the situation.

34. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 34 Advice to Managers When determining how much to allow your subordinates to participate in decision making, consider the decision to be made, the subordinates involved, and the information you need to make a good decision.

35. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 35 Advice to Managers Realize that participation in decision making can contribute to your subordinates’ growth and development on the job but can also be time-consuming. Develop high-quality relationships with as many of your subordinates as possible - that is, have a big in-group and a small out- group.

36. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 36 New Topics in Leadership Research Transformational Leadership Charismatic Leader Transactional Leadership Leader Mood Gender and Leadership

37. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 37 Transformational Leadership Leadership that inspires followers to trust the leader, perform behaviors that contribute to the achievement of organizational goals, and perform at a high level.

38. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 38 FIGURE 12.5 Transformational Leadership

39. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 39 Charismatic Leader A self-confident, enthusiastic leader able to win followers’ respect and support for his or her vision of how good things could be.

40. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 40 Transactional Leadership Leadership that motivates followers by exchanging rewards for high performance and noticing and reprimanding subordinates for mistakes and substandard performance.

41. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 41 Advice to Managers Let your subordinates know how important the work they do is for their work groups and for the organization as a whole. Convey to your subordinates that it is important for them to grow and develop on the job and to feel that they are accomplishing something.

42. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 42 Advice to Managers Show your subordinates that you are concerned about them, and give them the opportunity to learn new things and acquire new skills. Have your own vision of how good things could be in the groups you manage and in your whole organization, and convey your vision to your subordinates.

43. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 43 Advice to Managers Be enthusiastic and excited about your vision. Discuss with your subordinates problems you are facing, and show them how these problems can be solved if everyone works to achieve your vision.

44. CHAPTER 12 Leadership Copyright © 1999 Addison Wesley Longman 44 Advice to Managers Use managers who are especially good at involving subordinates in decision making to help other managers who have trouble being participative improve their interpersonal skills.