1. 1 Chapter 14 Leadership Dr. Ellen A. Drost

2. 2 What Is Leadership? Objectives: explain what leadership is. describe who leaders are and what effective leaders do. Theories of Leadership Traits Behavior Situational Approaches Strategic Leadership

3. 3 Leadership Differences between Leaders and Managers 1 1

4. 4 Leaders versus Managers MANAGERS Do things right Status quo Short-term Means Builders Problem solving MANAGERS Do things right Status quo Short-term Means Builders Problem solving LEADERS Do the right thing Change Long-term Ends Architects Inspiring & motivating LEADERS Do the right thing Change Long-term Ends Architects Inspiring & motivating

5. 5 Leaders versus Managers American organizations (and probably those in much of the rest of the industrialized world) are under led and over managed. They do not pay enough attention to doing the right thing, while they pay too much attention to doing things right. --Warren Bennis American organizations (and probably those in much of the rest of the industrialized world) are under led and over managed. They do not pay enough attention to doing the right thing, while they pay too much attention to doing things right. --Warren Bennis

6. 6 Who Leaders Are and What Leaders Do Leadership Traits Leadership Traits Leadership Behavior Leadership Behavior

7. 7 Leadership Traits Desire to Lead Drive Knowledge of the Business Cognitive Ability Emotional Stability Self-Confidence Honesty and Integrity

8. 8 Leadership Behaviors Initiating Structure or Task-Related Behavior The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. Consideration or Relationship-Related Behavior The extent to which a leader is friendly, approachable, and supportive and shows concern for employees.

9. 9 Situational Approaches to Leadership All situational approaches to leadership assume that the effectiveness of any leadership style, the way a leader generally behaves toward followers, depends on the situation

10. 10 Path-Goal Theory A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.

11. 11 Basic Assumptions of Path-Goal Theory Clarify paths to goals Clear paths to goals by solving problems and removing roadblocks Increase the number and kinds of rewards available for goal attainment Do things that satisfy followers today or will lead to future rewards or satisfaction Offer followers something unique and Valuable beyond what they’re experiencing Offer followers something unique and Valuable beyond what they’re experiencing

12. 12 Path-Goal Theory Subordinate Contingencies Perceived Ability Locus of Control Experience Subordinate Contingencies Perceived Ability Locus of Control Experience Environmental Contingencies Task Structure Formal Authority System Primary Work Group Environmental Contingencies Task Structure Formal Authority System Primary Work Group Outcomes Subordinate satisfaction Subordinate performance Outcomes Subordinate satisfaction Subordinate performance Leadership Styles Directive Supportive Participative Achievement-Oriented Leadership Styles Directive Supportive Participative Achievement-Oriented

13. 13 Adapting Leader Behavior: Path-Goal Theory Leadership Styles Leadership Styles Subordinate and Environmental Contingencies Subordinate and Environmental Contingencies Outcomes

14. 14 Leadership Styles Directive –clarifying expectations and guidelines Supportive –being friendly and approachable Participative –allowing input on decisions Achievement-Oriented –setting challenging goals

15. 15 Path Goal Theory: Leadership Styles

16. 16 Visionary Leadership Charismatic Leadership Transformational Leadership

17. 17 Charismatic Leadership Creates an exceptionally strong relationship between leader and follower Charismatic leaders: –articulate a clear vision, based on values –model values consistently with vision –communicate high performance expectations –display confidence in followers’ abilities

18. 18 Kinds of Charismatic Leaders Ethical Charismatics –provide developmental opportunities –open to positive and negative feedback –recognize others’ contributions –share information –concerned with the interests of the group Unethical Charismatics –control and manipulate followers –do what is best for themselves –only want positive feedback –motivated by self-interest

19. 19 Ethical and Unethical Charismatic Leaders Charismatic Behaviors Unethical Charismatics Exercising Power Power is used to dominate others Creating the vision Vision comes solely from the leader Communicating with followers One-way communication, not open to input from others Accepting feedbackPrefer yes-men, punish candid feedback Don’t want followers to think, prefer uncritical acceptance of own ideas Stimulating followers Developing followersInsensitive to followers’ needs Living by moral standards Follow standards only if they satisfy immediate self interests

20. 20 Reducing Risks of Unethical Charismatics 1.Have a clearly written code of conduct 2.Recruit, select, and promote managers with high ethical standards 3.Train leaders how to value, seek, and used diverse points of view 4.Celebrate and reward those who exhibit ethical behaviors

21. 21 Transformational Leadership Generates awareness and acceptance of group’s purpose and mission Gets followers to accomplish more than they intended or thought possible

22. 22 Components of Transformational Leadership 1.Charisma or idealized influence 2.Inspirational motivation 3.Intellectual stimulation 4.Individualized consideration 6.2

23. 23 Leaders Need Peer Support, Just Like Their Employees CEOs say it’s tough to get advice they can trust: –consultants are too vague and interested in their contracts –lower-level executives are too deferential Some CEOs are starting to form peer groups to share advice and provide a sounding board for each other. As long as participants adhere to the SEC’s regulations, members can bring all kinds of issues before the group – and do. Source: P. Dvorak, “Do-It-Yourself Consulting: CEOs Gather to Swap Tips,” Wall Street Journal, 26 July 2007, A1.