1. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Chapter 13 Leadership

2. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 2 Learning Objectives After reading this chapter, you should be able to: Distinguish between management and leadership. Recognize how leaders use different power bases to exercise influence. Identify effective leader characteristics based on person- based theories and recognize the limitations of these approaches. Recognize how different contexts call for different leadership qualities, using situational theories of leadership. Identify ways to engender leadership through organizational characteristics or employees by applying dispersed theories of leadership. Understand, through the exchange theories, how to implement leadership through relationships with others. Describe and apply the concept of authentic leadership.

3. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 3 What Makes a Leader Effective? Ability to influence other people Have a vision – ideas or objectives that clarify to others where they should be headed “Sell” the vision by articulating it in a compelling and persuasive manner Encourage followers to establish appropriate implementation activities to support the accomplishment of the vision

4. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 4LeadershipManagementCompareContrast

5. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 5 Practices Associated with Leadership by Managers Planning and organizing Problem solving Clarifying Informing Monitoring Motivating Consulting Recognizing Planning and organizing Problem solving Clarifying Informing Monitoring Motivating Consulting Recognizing Supporting Managing conflict and team building Networking Delegating Developing and mentoring Rewarding Supporting Managing conflict and team building Networking Delegating Developing and mentoring Rewarding

6. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 6 Power Coercive Power Reward Power Legitimate Power Expert Power Referent Power

7. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 7 Leadership: Traditional Explanations Person-based Theories Situational Theories Dispersed Theories Exchange Theories

8. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 8 Trait Theory Ambition and Energy Ambition Desire to Lead Desire Self-ConfidenceSelf-Confidence Honesty and Integrity Honesty IntelligenceIntelligence “Can-Do”Attitude“Can-Do”Attitude

9. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 9 Behavioral Theories Ohio State Employee-OrientationEmployee-Orientation Production-OrientationProduction-Orientation University of Michigan Michigan Initiating Structure ConsiderationConsideration

10. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 10 The Managerial Grid Concern for Production 123456789 1 2 34 5 6 7 89 Concern for People (1,9) (1,1) (5,5) (9,9) (9,1)

11. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 11 Findings of the Fiedler Model Category Leader-Member Leader-Member Relations Relations Task Structure Task Structure Position Power Position PowerIGoodHighStrongIIGoodHighWeakIIIGoodLowStrongIVGoodHighWeakVPoorHighStrongVIPoorHighWeakVIIPoorLowStrongVIIIPoorLowWeak Good Poor Performance Relationship-Oriented Task-Oriented FavorableModerateUnfavorable

12. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 12 The Path-Goal Framework EnvironmentalContingenciesEnvironmentalContingencies OutcomesOutcomesLeaderBehaviorLeaderBehavior SubordinateContingenciesSubordinateContingencies

13. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 13 Dispersed Theories Substitute Leadership:attempts to identify workplace characteristics that can substitute for leadership or neutralize efforts made by a leader Self-Leadership: leadership that stresses the individual responsibility of employees to develop their own work priorities aligned with organizational goals

14. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 14 Characteristics of Traditional and Self-Managing Behaviors: Traditional Leader BehaviorsSelf-Managing Leader Behaviors Organization – Structures own and subordinates work Encourages self-reward Domination – Restricts or limits the discretion of individuals or groups Encourages self-observation Production – Sets standards for task performance Encourages self-goal setting Recognition – Expresses approval or disapproval of behavior Encourages self-criticism Integration – Promotes group cohesion and reduces group conflict Encourages self-rehearsal Communication – Provides, seeks, and exchanges information with group members Acts as a role model by exhibiting appropriate behavior Fosters the development of a culture that nourishes and supports self-leadership

15. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 15 Exchange Theories Transactional Leadership: leaders who use legitimate, coercive, or reward powers to elicit obedience and attempt to instill in followers the ability to question standard modes of operation Transformational Leadership: leaders who revitalize organizations by instilling in followers the ability to question standard modes of operation Authentic leadership: An approach that emphasizes the importance of a positive directive force, particularly in an environment of increasing complexity, change, and uncertainty

16. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 16 Characteristics of Transactional and Transformational Leaders Transactional Leader Contingent reward Management by exception (active) Management by exception (passive) Laissez-Faire Transactional Leader Contingent reward Management by exception (active) Management by exception (passive) Laissez-Faire Transformational Leader Charisma Inspiration Intellectual stimulation Individualized consideration Transformational Leader Charisma Inspiration Intellectual stimulation Individualized consideration

17. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 17 Characteristics of Authentic Leaders Value Driven No Gap between Internal Values and Actions Transparent Influence by Inspiration Developmental Focus Moral Capacity

18. Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Slide 18 Applications of Management Perspectives — For the Manager Managers should identify the theories that best fit them and their situations:  Some situations call for a strong person to guide the organization through change  Other situations may call for the dispersed leadership  Uncertainties and difficult times may best match authentic leadership Both management and leadership skills can be positive for employees and the organization; they will also bode well for your own career.