1. Exploring Management
Chapter 11
Leadership

2. Chapter 11 Understand the foundations for effective leadership.
Identify insights of the contingency leadership theories.
Discuss current issues and directions in leadership development.
We will see that leadership and management, although not the same, have a lot in common.

3. 11.1 Foundations of Leadership
Leadership is one of the four functions of management
Leaders use position power to achieve influence
Leaders use personal power to achieve influence
Leaders bring vision to leadership situations
Leaders display different traits in the quest for leadership effectiveness
Leaders display different styles in the quest for leadership effectiveness
Leadership traits and styles are a lot like effective manager’s traits and styles. However managers tend to rely more on position power.

4. FOUNDATIONS OF LEADERSHIP The Leadership Function
Leading builds commitments and enthusiasm and turns plans into action
It is true that leadership is one of the 4 functions of management but that does not mean that all managers are effective leaders. Students tend to have plenty of examples of mangers who are really poor leaders.

5. FOUNDATIONS OF LEADERSHIP Power
Power is the ability to get others to do what needs to be done
Position Power
Personal Power
Management Power
Position power should be used sparingly. Personal power, though more difficult to obtain, is more effective in the long term.

6. FOUNDATIONS OF LEADERSHIP Power
Position power –what an individual can do based on position in the organization
Reward power
“you can have this if you do this”
Coercive power
“do this or I’ll take this away”
Legitimate power
“do it because I’m your boss”
Position power is pretty limited by how effective the rewards or coercive power are in influencing behavior. If the rewards or punishments aren’t persuasive, the manager doesn’t have much to go on.

7. FOUNDATIONS OF LEADERSHIP Power
Personal Power – how the leader is perceived as a person
Expert power
Special skill or knowledge that influences behavior
Referent power
Admirable and likeable qualities that influence behavior
Position power grows with the relationship between manager (leader) and employee (follower). Respect is a big factor.

8. FOUNDATIONS OF LEADERSHIP Vision
Vision is a clear sense of the future
Visionary leadership is the ability to communicate the vision and how to accomplish the vision
Leaders must also be able to convince followers that their vision is attainable and their effort is necessary.

9. FOUNDATIONS OF LEADERSHIP Leadership Traits
People want leaders who are
Honest
Competent
Forward-looking
Inspiring
Credible
Of course, not all effective leaders have all these traits but, then again, the more of these traits a leader has, the more effective he/she is likely to be.

10. FOUNDATIONS OF LEADERSHIP Leadership Styles
Leadership styles are a pattern of behavior
Autocratic
Acts in a “command and control” fashion
Human relations
Emphasizes people over tasks
Democratic
Participative with a strong emphasis on people and task
Laissez-faire
Little concern for people or tasks
A manager that is low on concern for tasks and people is unlikely to do much for the organization.

11. FOUNDATIONS OF LEADERSHIP Leadership Styles
A manager that is low on concern for tasks and people is unlikely to do much for the organization.

12. 11.2 Contingency Leadership Theories
Fiedler’s contingency model matches leadership styles with situational differences
The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers
House’s path-goal theory matches leadership styles with task and follower characteristics
Leader-member exchange theory describes how leaders treat in-group and out-group followers
The Vroom-Jago model describes a leader’s choice of alternative decision-making methods
There is no “one best way” to lead or manage.

13. CONTINGENCY THEORIES Contingency Leadership
Successful leadership varies by the circumstances, task, leader and followers
Understanding your personal style is a start. Emulating the style of others may or may not be appropriate.

14. CONTINGENCY THEORIES Contingency Leadership
Fiedler’s contingency model
Leadership style depends on the situation
Least Preferred Co-worker Scale (LPC)
Fiedler not only believed but conducted studies to show that effective leadership style is situational. His Task-motivated leader would be similar to the classical/mechanistic style of management while his Relationship-motivated style would be similar to the humanistic/organic management style.

15. CONTINGENCY THEORIES Hersey-Blanchard
Hersey-Blanchard situational model matches leadership style with maturity of followers
Like Fiedler, Hersey and Blanchard understood that leaders must adjust their style according to the situation. In their example, the maturity of the follower made the difference.

16. CONTINGENCY THEORIES Path-Goal Theory
House’s Path-Goal theory
Help followers move along paths to achieve work and personal goals
Four leadership styles
Directive leader
Supportive leader
Achievement oriented leader
Participative leader
Each person has different professional and personal needs. An effective leader needs to recognize this and to adjust his style depending on the situation and the individual that he/she is leading.

17. CONTINGENCY THEORIES Leader-Member Exchange
Leader-member exchange (LMX)
In-groups
Out-groups
In-groups are perceived as the best workers and receive more information and privileges.
Out-groups receive less information and fewer privileges and often resent the in-group.

18. CONTINGENCY THEORIES Vroom-Jago
is made by the leader and communicated to the group
Authority decision
is made by a leader after receiving input from the group
Consultative decision
is made by the group themselves
Group decision
Vroom-Jago model describes decision-making methods
Vroom-Jago also suggest that the quality of the decision, level of necessary acceptance and time constraints make a difference.

19. 11.3 Current Issues in Leadership
Transformational leadership inspires enthusiasm and extraordinary performance
Emotionally intelligent leadership handles emotions and relationships well
Interactive leadership emphasizes communication, listening and participation
Moral leadership builds trust from a foundation of personal integrity
Servant leadership is follower centered and empowering
Many of these issues demonstrate theory Y management characteristics.

20. CURRENT ISSUES Transformational Leadership
Charismatic leadership
Inspires others, creates enthusiasm and leads to extraordinary performance
Transformational leaders tend to build long term effective organizations.

21. CURRENT ISSUES Transformational Leadership
Transactional leadership
Directs through tasks, rewards, and structures
Transactional leaders are generally good at short term crisis or stable situations

22. CURRENT ISSUES Emotional Intelligence
Emotional Intelligence (EI)
Ability to manage emotions in relationships
Emotional intelligence is thought by some to be more important IQ.

23. CURRENT ISSUES Interactive Leadership
Emphasizes communication, listening and participation
Gender similarities
Men and women are similar in terms of psychological properties
Although men and women are similar intellectually, perception of their management styles varies widely.

24. CURRENT ISSUES Moral Leadership
Builds trust through integrity
Ethical leadership
Leaders with high ethical standards build ethical cultures
Integrity
Honest, credible and consistent behavior that puts values into action and earns trust
Given the corporate fraud of recent years, it is obvious that some very large corporations have not followed these trends

25. CURRENT ISSUES Servant Leadership
Commitment to others
Other-centered rather than self-centered
Empowerment
Give others freedom to gain power, make decisions and achievement influence
Servant leadership is consistent with the philosophies of Peter Drucker.