1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–1 CHAPTER 13 LEADERSHIP

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–2 LEADERSHIP Process of influencing others to achieve organisational goals Process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firm’s ability to meet new challenges

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–3 Sources of Power RewardPowerRewardPower LegitimatePowerLegitimatePower CoercivePowerCoercivePower ExpertPowerExpertPower ReferentPowerReferentPower Enable managers to be leaders & influence subordinates to achieve goals Enable managers to be leaders & influence subordinates to achieve goals Figure 13.1

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–4 HOW LEADERS INFLUENCE OTHERS Empowerment supports leadership: Increases manager’s ability to elicit support from subordinates Increase in worker motivation & commitment Decrease in supervisory effort Increase in time spent on non-supervisory management activities

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–5 HOW LEADERS INFLUENCE OTHERS Likely reaction to use of power: = Resistance = Compliance = Commitment Referent expert Legitimate information reward Coercion

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–6 LEADERSHIP TRAITS Distinctive internal qualities or characteristics of an individual, such as physical and personality characteristics, skills, abilities and social factors Early research identified no common leadership traits Current research is inconclusive Many believe that leadership is about what leaders do rather than about their personal traits

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–7 Iowa & Michigan studies: Iowa: Looked at leadership styles (autocratic, democratic, laissez faire) Authoritarian – leader makes decisions alone and then tells subordinates Democratic – leader actively involves subordinates in process of decision making; encourages an exchange of ideas; most desirable style that promotes job satisfaction, creativity, morale, and better relationships with leader (works during leader absence) Laissiez Faire – leader avoids making decisions; lets subordinates make and act on decision without any input and direction; if decisions carry a high level responsibility and consequences, this can be source of psychological stress to the subordinate. Workers preferred democratic style but this was not best for performance Michigan: Employee-centred leaders superior to job-centred leaders

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–8 LEADERSHIP BEHAVIOUR Ohio State studies: Suggested that the ideal was for leaders to combine job-centreness with an ability to build mutual trust with subordinates Two key behaviors identified: Initiating structure: Degree to which a leader defines their own role and that of subordinates in terms of achieving unit goals Consideration: Degree to which a leader builds mutual trust with subordinates, respects their ideas and shows concern for their feelings

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–9 LEADERSHIP BEHAVIOUR Gender & cultural differences: Gender: There are few substantial differences between male and female leaders. Culture: Japanese: group focus, long-term, humanistic European: individual focus, more humanistic than USA USA: individual focus

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–10 DEVELOPING SITUATIONAL THEORY Situational theory: Theories of leadership taking into consideration important situational factors

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–11 DEVELOPING SITUATIONAL THEORY Fiedler’s contingency theory Effective groups depend on match between a leader’s style of relating with subordinates & the extent to which the situation gives control to the leader. Leader’s style: High member relations leader is concerned with people Task-structure leader reduces ambiguity—‘Do I know what I am supposed to do?’ Position power—how well supported is the leader by his/her superiors?

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–12 DEVELOPING SITUATIONAL THEORY Normative leadership model: Model that assists leaders assess critical situational factors that affect the extent to which they should involve subordinates in particular decisions.

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–13 DEVELOPING SITUATIONAL THEORY Situational leadership model: Theory based on the premise that leaders need to alter their behaviours depending on one major situational factor—the readiness of followers.

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–14 DEVELOPING SITUATIONAL THEORY Situational leadership model High RELATIONSHIPRELATIONSHIP Low High Task High relationship and low task High task and high relationship Low relationship and low task High task and low relationship Selling Telling Delegating Participating

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–15 DEVELOPING LEADERSHIP THEORY Path–goal theory: Theory attempting to explain how leader behaviour can positively influence the motivation and job satisfaction of subordinates

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–16 DEVELOPING LEADERSHIP THEORY Path–goal theory Leader behaviors Directive leader behavior Supportive leader behavior Participative leader behavior Achievement-oriented leader behavior Situational factors Subordinate characteristics Context characteristics Choosing leader behavior to fit above

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–17 DEVELOPING LEADERSHIP THEORY Path–goal theory: Leader behaviour Directive Supportive Participative Achievement Leader behaviour Directive Supportive Participative Achievement Environmental contingency factors Task structure, formal authority, work groups Environmental contingency factors Task structure, formal authority, work groups Subordinate contingency factors Personality, experience, abilities, needs Subordinate contingency factors Personality, experience, abilities, needs Outcomes: Performance Satisfaction Outcomes: Performance Satisfaction

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–18 PROMOTING INNOVATION: TRANSFORMATIONAL LEADERSHIP Transformational leaders Motivate individuals to perform beyond normal expectations by inspiring subordinates to focus on broader missions transcending their own self-interests

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–19 TRANSFORMATIONAL LEADERSHIP Charisma Leadership factor comprising the leader’s ability to inspire pride, faith and respect; to recognise what is really important; and to articulate effectively a sense of mission, or vision, to inspire followers.

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–20 TRANSFORMATIONAL LEADERSHIP Motivate others Vision beyond self-interest Seek intrinsic higher-level goals Seek performance beyond expectations Have charisma Key characteristics of transformational leaders Key characteristics of transformational leaders

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–21 ARE LEADERS NECESSARY? Some argue that leadership’s importance is overrated and in many contexts makes little difference. (Yukl 1989)

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–22 ARE LEADERS NECESSARY? Neutralisers: Situational factors preventing leader behaviour from influencing subordinate performance/satisfaction THESE INCLUDE: Subordinate high need for independence Low subordinate valence for available rewards Physical distance of leader from subordinates

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–23 ARE LEADERS NECESSARY? Substitutes: Situational factors making the impact of leadership impossible or unnecessary THESE INCLUDE: Satisfying work Able and experienced subordinates Professional orientation of subordinates Routine work, clearly specified methods/feedback