1. CHAPTER 17 Managing Leadership and Influence Processes Managing Leadership and Influence Processes Copyright © by Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook

2. Copyright © by Houghton Mifflin Company. All rights reserved. 17–2 Learning Objectives After studying this chapter, you should be able to: –Describe the nature of leadership and distinguish leadership from management. –Discuss and evaluate the trait approach to leadership. –Discuss and evaluate models of leadership, focusing on behaviors. –Identify and describe the major situational approaches to leadership. –Identify and describe three related perspectives on leadership. –Discuss political behavior in organizations and how it can be managed. After studying this chapter, you should be able to: –Describe the nature of leadership and distinguish leadership from management. –Discuss and evaluate the trait approach to leadership. –Discuss and evaluate models of leadership, focusing on behaviors. –Identify and describe the major situational approaches to leadership. –Identify and describe three related perspectives on leadership. –Discuss political behavior in organizations and how it can be managed.

3. Copyright © by Houghton Mifflin Company. All rights reserved. 17–3 Chapter Outline The Nature of Leadership –The Meaning of Leadership –Leadership Versus Management –Power and Leadership The Search for Leadership Traits Leadership Behaviors –Michigan Studies –Ohio State Studies –Managerial Grid Situational Approaches to Leadership –LPC Theory –Path-Goal Theory –Vroom’s Decision Tree –The Leader-Member Exchange The Nature of Leadership –The Meaning of Leadership –Leadership Versus Management –Power and Leadership The Search for Leadership Traits Leadership Behaviors –Michigan Studies –Ohio State Studies –Managerial Grid Situational Approaches to Leadership –LPC Theory –Path-Goal Theory –Vroom’s Decision Tree –The Leader-Member Exchange Related Perspectives on Leadership –Substitutes for Leadership –Charismatic Leadership –Transformational Leadership Political Behavior in Organizations –Common Political Behaviors –Managing Political Behaviors

4. Copyright © by Houghton Mifflin Company. All rights reserved. 17–4 The Nature of Leadership The Meaning of Leadership –Process: what leaders actually do. Using noncoercive influence to shape the group’s or organization’s goals. Motivating others’ behavior toward goals. Helping to define organizational culture. –Property: who leaders are. The set of characteristics attributed to individuals perceived to be leaders. –Leaders People who can influence the behaviors of others without having to rely on force. People who are accepted as leaders by others. The Meaning of Leadership –Process: what leaders actually do. Using noncoercive influence to shape the group’s or organization’s goals. Motivating others’ behavior toward goals. Helping to define organizational culture. –Property: who leaders are. The set of characteristics attributed to individuals perceived to be leaders. –Leaders People who can influence the behaviors of others without having to rely on force. People who are accepted as leaders by others.

5. Copyright © by Houghton Mifflin Company. All rights reserved. 17–5 The Nature of Leadership (cont’d) Leadership Versus Management Source: Adapted from A Force for Change: How Leadership Differs from Management by John P. Kotter. Copyright © 1990 by John P. Kotter, Inc. Reprinted with permission of The Free Press, a division of Simon & Schuster Inc. Table 17.1

6. Copyright © by Houghton Mifflin Company. All rights reserved. 17–6 The Nature of Leadership (cont’d) Power and Leadership –Power is the ability to affect the behavior of others. Legitimate power is granted through the organizational hierarchy. Reward power is the power to give or withhold rewards. Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat. Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma. Expert power is derived from the possession of information or expertise. Power and Leadership –Power is the ability to affect the behavior of others. Legitimate power is granted through the organizational hierarchy. Reward power is the power to give or withhold rewards. Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat. Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma. Expert power is derived from the possession of information or expertise.

7. Copyright © by Houghton Mifflin Company. All rights reserved. 17–7 The Nature of Leadership (cont’d) Using Power –Legitimate request Compliance by a subordinate with a manager’s request because the organization has given the manager the right to make the request. –Instrumental compliance A subordinate complies with a manager’s request to get the rewards that the manager controls. –Coercion Threatening to fire, punish, or reprimand subordinates if they do not do something. –Rational persuasion Convincing subordinates that compliance is in their own best interest. Using Power –Legitimate request Compliance by a subordinate with a manager’s request because the organization has given the manager the right to make the request. –Instrumental compliance A subordinate complies with a manager’s request to get the rewards that the manager controls. –Coercion Threatening to fire, punish, or reprimand subordinates if they do not do something. –Rational persuasion Convincing subordinates that compliance is in their own best interest.

8. Copyright © by Houghton Mifflin Company. All rights reserved. 17–8 The Nature of Leadership (cont’d) Using Power (cont’d) –Personal identification Using the referent power of a superior’s desired behaviors to shape the behavior of a subordinate. –Inspirational appeal Influencing a subordinate’s behavior through an appeal to a set of higher ideals or values (e.g., loyalty). –Information distortion Withholding or distorting information (which may create an unethical situation) to influence subordinates’ behavior. –Personal identification Using the superior’s referent power over a subordinate to shape his behavior. Using Power (cont’d) –Personal identification Using the referent power of a superior’s desired behaviors to shape the behavior of a subordinate. –Inspirational appeal Influencing a subordinate’s behavior through an appeal to a set of higher ideals or values (e.g., loyalty). –Information distortion Withholding or distorting information (which may create an unethical situation) to influence subordinates’ behavior. –Personal identification Using the superior’s referent power over a subordinate to shape his behavior.

9. Copyright © by Houghton Mifflin Company. All rights reserved. 17–9 The Search for Leadership Traits Traits Approach to Leadership –Assumed that a basic set of personal traits that differentiated leaders from nonleaders could be used to identify leaders and as a tool for predicting who would become leaders. –The trait approach was unsuccessful in establishing empirical relationships between traits and persons regarded as leaders. Traits Approach to Leadership –Assumed that a basic set of personal traits that differentiated leaders from nonleaders could be used to identify leaders and as a tool for predicting who would become leaders. –The trait approach was unsuccessful in establishing empirical relationships between traits and persons regarded as leaders.

10. Copyright © by Houghton Mifflin Company. All rights reserved. 17–10 Leadership Behaviors Michigan Studies (Rensis Likert) –Identified two forms of leader behavior Job-centered behavior—managers who pay close attention to subordinates’ work, explain work procedures, and are keenly interested in performance. Employee-centered behavior—managers who focus on the development of cohesive work groups and employee satisfaction. These two forms of leader behaviors were considered to be at opposite ends of the same continuum and similar to (respectively) Likert’s System 1 and System 4 of organizational design. Michigan Studies (Rensis Likert) –Identified two forms of leader behavior Job-centered behavior—managers who pay close attention to subordinates’ work, explain work procedures, and are keenly interested in performance. Employee-centered behavior—managers who focus on the development of cohesive work groups and employee satisfaction. These two forms of leader behaviors were considered to be at opposite ends of the same continuum and similar to (respectively) Likert’s System 1 and System 4 of organizational design.

11. Copyright © by Houghton Mifflin Company. All rights reserved. 17–11 Leadership Behaviors (cont’d) Ohio State Studies –The studies did not interpret leader behavior as being one- dimensional as did the Michigan State studies. –Identified two basic leadership styles that can be exhibited simultaneously: Initiating-structure behavior—the leader clearly defines the leader-subordinate role expectations, formalizes communications, and sets the working agenda. Consideration behavior—the leader shows concern for subordinates and attempts to establish a friendly and supportive climate. Ohio State Studies –The studies did not interpret leader behavior as being one- dimensional as did the Michigan State studies. –Identified two basic leadership styles that can be exhibited simultaneously: Initiating-structure behavior—the leader clearly defines the leader-subordinate role expectations, formalizes communications, and sets the working agenda. Consideration behavior—the leader shows concern for subordinates and attempts to establish a friendly and supportive climate.

12. Copyright © by Houghton Mifflin Company. All rights reserved. 17–12 Leadership Behaviors (cont’d) Ohio State Studies (cont’d) –Initial assumption of the research was that leaders who exhibit high levels of both behaviors would be most effective leaders. Subsequent research indicated that: Employees of supervisors ranked highly on initiating structure were high performers, although they expressed low levels of satisfaction and had higher absenteeism. Employees of supervisors ranked highly on consideration had low- performance ratings, but they had high levels of satisfaction and had less absenteeism. Other situational variables were making consistent leader behavior predictions difficult. There is no universal or “one best way” model of leadership. Ohio State Studies (cont’d) –Initial assumption of the research was that leaders who exhibit high levels of both behaviors would be most effective leaders. Subsequent research indicated that: Employees of supervisors ranked highly on initiating structure were high performers, although they expressed low levels of satisfaction and had higher absenteeism. Employees of supervisors ranked highly on consideration had low- performance ratings, but they had high levels of satisfaction and had less absenteeism. Other situational variables were making consistent leader behavior predictions difficult. There is no universal or “one best way” model of leadership.

13. Copyright © by Houghton Mifflin Company. All rights reserved. 17–13 Leadership Grid The Leadership Grid® is a method of evaluating leadership styles. The Grid® is used to train managers so that they are simultaneously more concerned for people and for production (9,9 style on the Grid®). Source: From Leadership Dilemmas— Grid Solutions by Robert R. Blake and Anne Adams McCanse. (Formerly the Managerial Grid by Robert R. Blake and Jane S. Mouton.) Houston: Gulf Publishing Company, p. 29. Copyright © 1991 by Scientific Methods, Inc. Reproduced by permission of the owners. Figure 17.1

14. Copyright © by Houghton Mifflin Company. All rights reserved. 17–14 Situational Approaches to Leadership Situational Models of Leader Behavior –Assume that: Appropriate leader behavior varies from one situation to another. Key situational factors that are interacting to determine appropriate leader behavior can be identified. Leadership Continuum (Tannenbaum and Schmidt) –Variables influencing the decision-making continuum: Leader’s characteristics—value system, confidence in subordinates, personal inclinations, and feelings of security. Subordinates’ characteristics—independence needs, readiness for responsibility, tolerance of ambiguity, interest in the problem, understanding goals, knowledge, experience, and expectations. Situational Characteristics—type of organization, group effectiveness, the problem itself, and time pressures. Situational Models of Leader Behavior –Assume that: Appropriate leader behavior varies from one situation to another. Key situational factors that are interacting to determine appropriate leader behavior can be identified. Leadership Continuum (Tannenbaum and Schmidt) –Variables influencing the decision-making continuum: Leader’s characteristics—value system, confidence in subordinates, personal inclinations, and feelings of security. Subordinates’ characteristics—independence needs, readiness for responsibility, tolerance of ambiguity, interest in the problem, understanding goals, knowledge, experience, and expectations. Situational Characteristics—type of organization, group effectiveness, the problem itself, and time pressures.

15. Copyright © by Houghton Mifflin Company. All rights reserved. 17–15 Situational Approaches to Leadership (cont’d) Tannenbaum and Schmidt’s Leadership Continuum Use of Authority by Manager Boss-centered leadership Manager makes decision and announces it Manager permits subordinates to function within limits defined by superior Manager defines limits, asks group to make decision Manager presents problem, gets suggestions, makes decision Manager presents tentative decision subject to change Manager presents ideas and invites questions Manager “sells” decision Area of Freedom for Subordinates Subordinate-centered leadership Source: Reprinted by permission of the Harvard Business Review. An exhibit from “How to Choose a Leadership Pattern” by Robert Tannenbaum and Warren Schmidt (May–June 1973). Copyright © by the President and Fellows of Harvard College; all rights reserved. Figure 17.2

16. Copyright © by Houghton Mifflin Company. All rights reserved. 17–16 Situational Approaches to Leadership (cont’d) Least-Preferred Coworker Theory (Fiedler) –The appropriate style of leadership varies with situational favorableness (from the leader’s viewpoint). –Least preferred coworker (LPC) The measuring scale that asks leaders to describe the person with whom they are least able to work well. High LPC scale scores indicate a relationship orientation; low LPC scores indicate a task orientation on the part of the leader. –Contingency variables determining situational favorableness: Leader-member relations—the nature of the relationship between the leader and the work group. Task structure—the degree to which the group’s task is defined. Position Power—the power vested in the leader’s position. Least-Preferred Coworker Theory (Fiedler) –The appropriate style of leadership varies with situational favorableness (from the leader’s viewpoint). –Least preferred coworker (LPC) The measuring scale that asks leaders to describe the person with whom they are least able to work well. High LPC scale scores indicate a relationship orientation; low LPC scores indicate a task orientation on the part of the leader. –Contingency variables determining situational favorableness: Leader-member relations—the nature of the relationship between the leader and the work group. Task structure—the degree to which the group’s task is defined. Position Power—the power vested in the leader’s position.

17. Copyright © by Houghton Mifflin Company. All rights reserved. 17–17 Situational Approaches to Leadership (cont’d) The Least-Preferred Coworker Theory of Leadership Contingency FactorsSituations Leader-member relationsGood Task structureHigh Position powerStrong Bad LowHighLow WeakStrongWeakStrongWeakStrongWeak Favorableness of Situation Appropriate Leader Behavior Most favorableModerately favorableMost unfavorable Task-oriented Relationship-oriented Figure 17.3

18. Copyright © by Houghton Mifflin Company. All rights reserved. 17–18 Situational Approaches to Leadership (cont’d) Path-Goal Theory (Evans and House) –The primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards. –Leader Behaviors: Directive leader behavior—letting subordinates know what is expected of them, giving guidance and direction, and scheduling work. Supportive leader behavior—being friendly and approachable, having concern for subordinate welfare, and treating subordinates as equals. Participative leader behavior—consulting with subordinates, soliciting suggestions, and allowing participation in decision making. Achievement-oriented leader behavior—setting challenging goals, expecting subordinates to perform at high levels, encouraging and showing confidence in subordinates. Path-Goal Theory (Evans and House) –The primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards. –Leader Behaviors: Directive leader behavior—letting subordinates know what is expected of them, giving guidance and direction, and scheduling work. Supportive leader behavior—being friendly and approachable, having concern for subordinate welfare, and treating subordinates as equals. Participative leader behavior—consulting with subordinates, soliciting suggestions, and allowing participation in decision making. Achievement-oriented leader behavior—setting challenging goals, expecting subordinates to perform at high levels, encouraging and showing confidence in subordinates.

19. Copyright © by Houghton Mifflin Company. All rights reserved. 17–19 The Path-Goal Theory Situational Factors: Work Situation Follower lacks self- confidence Supportive Achievement- oriented Participative Directive Leadership Style Impact on Followers Expected Results Lack of job challenge Improper procedures and poor decisions Ambiguous job Increases self- confidence to complete task Encourages setting high but attainable goals Clarifies follower need for making suggestions and involvement Clarifies path to get rewards Increased effort. job satisfaction, and performance; fewer grievances Improved performance and greater job satisfaction Improved performance and greater satisfaction; less turnover Improved performance and job satisfaction

20. Copyright © by Houghton Mifflin Company. All rights reserved. 17–20 Path Goal Theory to Leadership (cont’d) The Path-Goal Framework Subordinates’ personal characteristics Perceived ability Locus of control Leader behaviors Directive Supportive Participative Achievement- oriented Environmental characteristics Task structure Work group Subordinates’ motivation to perform Figure 17.4

21. Copyright © by Houghton Mifflin Company. All rights reserved. 17–21 Situational Approaches to Leadership (cont’d) Vroom Decision Tree Approach –Attempts to prescribe a leadership style appropriate to a given situation. –Basic Premises The degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. No one decision-making process is best for all situations. After evaluating the different problem attributes, a leader can choose a decision path on one of two decision trees that determines the decision style and specifies the amount of employee participation. –Decision significance—the degree to which the decision will have an impact on the organization. Subordinates are involved when decision significance is high. –Decision Timeliness—the degree of time pressure for making a decision in a timely basis; may preclude involving subordinates. Vroom Decision Tree Approach –Attempts to prescribe a leadership style appropriate to a given situation. –Basic Premises The degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. No one decision-making process is best for all situations. After evaluating the different problem attributes, a leader can choose a decision path on one of two decision trees that determines the decision style and specifies the amount of employee participation. –Decision significance—the degree to which the decision will have an impact on the organization. Subordinates are involved when decision significance is high. –Decision Timeliness—the degree of time pressure for making a decision in a timely basis; may preclude involving subordinates.

22. Copyright © by Houghton Mifflin Company. All rights reserved. 17–22 Situational Approaches to Leadership (cont’d) Vroom Decision Tree Approach (cont’d) –Decision-Making Styles Decide—manager makes decision alone and then announces or “sells” it to the group. Consult (individually)—manager presents program to group members individually, obtains their suggestions, then makes the decision. Consult (group)—manager presents problem to group at a meeting, gets their suggestions, then makes the decision. Facilitate—manager presents the problem to the group, defines the problem and its boundaries, and then facilitates group member discussion as they make the decision. Delegate—manager allows the group to define for itself the exact nature and parameters of the problem and then develop a solution. Vroom Decision Tree Approach (cont’d) –Decision-Making Styles Decide—manager makes decision alone and then announces or “sells” it to the group. Consult (individually)—manager presents program to group members individually, obtains their suggestions, then makes the decision. Consult (group)—manager presents problem to group at a meeting, gets their suggestions, then makes the decision. Facilitate—manager presents the problem to the group, defines the problem and its boundaries, and then facilitates group member discussion as they make the decision. Delegate—manager allows the group to define for itself the exact nature and parameters of the problem and then develop a solution.

23. Copyright © by Houghton Mifflin Company. All rights reserved. 17–23 Vroom’s Time-Driven Decision Tree Source: Victor Vroom’s Time-Driven Model from A Model of Leadership Style, copyright Vroom, 1998. Figure 17.5

24. Copyright © by Houghton Mifflin Company. All rights reserved. 17–24 Source: Victor Vroom’s Development-Driven Model from A Model of Leadership Style, copyright Vroom, 1998. Vroom’s Development-Driven Decision Tree Figure 17.6

25. Copyright © by Houghton Mifflin Company. All rights reserved. 17–25 Situational Approaches to Leadership (cont’d) The Leader-Member Exchange (LMX) Approach –Stresses the importance of variable relationships between supervisors and each of their subordinates. –Leaders form unique independent relationships (“vertical dyads”) with each subordinate in which the subordinate becomes a member of the leader’s out-group or in-group. The Leader-Member Exchange (LMX) Approach –Stresses the importance of variable relationships between supervisors and each of their subordinates. –Leaders form unique independent relationships (“vertical dyads”) with each subordinate in which the subordinate becomes a member of the leader’s out-group or in-group. Leader Subordinate 1 2 3 4 5 Out-Group In-Group Figure 17.7

26. Copyright © by Houghton Mifflin Company. All rights reserved. 17–26 Related Perspectives on Leadership Substitutes for Leadership –A concept that identifies situations in which leader behavior is neutralized or replaced by characteristics of subordinates, the task, and the organization. Substitutes for Leadership –A concept that identifies situations in which leader behavior is neutralized or replaced by characteristics of subordinates, the task, and the organization.

27. Copyright © by Houghton Mifflin Company. All rights reserved. 17–27 Related Perspectives on Leadership (cont’d) Charismatic Leadership (House) –Charisma, an interpersonal attraction that inspires support and acceptance, is an individual characteristic of a leader. –Charismatic persons are more successful than noncharismatic persons. –Charismatic leaders are self-confident, have a firm conviction in their belief and ideals, and possess a strong need to influence people. Charismatic Leadership (House) –Charisma, an interpersonal attraction that inspires support and acceptance, is an individual characteristic of a leader. –Charismatic persons are more successful than noncharismatic persons. –Charismatic leaders are self-confident, have a firm conviction in their belief and ideals, and possess a strong need to influence people.

28. Copyright © by Houghton Mifflin Company. All rights reserved. 17–28 Related Perspectives on Leadership (cont’d) Charismatic Leadership (cont’d) –Charismatic leaders in organizations must be able to: envision the future, set high expectations, and model behaviors consistent with expectations. energize others through a demonstration of excitement, personal confidence, and patterns of success. enable others by supporting them, by empathizing with them, and by expressing confidence in them. Charismatic Leadership (cont’d) –Charismatic leaders in organizations must be able to: envision the future, set high expectations, and model behaviors consistent with expectations. energize others through a demonstration of excitement, personal confidence, and patterns of success. enable others by supporting them, by empathizing with them, and by expressing confidence in them.

29. Copyright © by Houghton Mifflin Company. All rights reserved. 17–29 Related Perspectives on Leadership (cont’d) Transformational Leadership –Leadership that goes beyond ordinary expectations, by transmitting a sense of mission, stimulating learning, and inspiring new ways of thinking. –Seven keys to successful leadership Trusting in one’s subordinates Developing a vision Keeping cool Encouraging risk Being an expert Inviting dissent Simplifying things Transformational Leadership –Leadership that goes beyond ordinary expectations, by transmitting a sense of mission, stimulating learning, and inspiring new ways of thinking. –Seven keys to successful leadership Trusting in one’s subordinates Developing a vision Keeping cool Encouraging risk Being an expert Inviting dissent Simplifying things

30. Copyright © by Houghton Mifflin Company. All rights reserved. 17–30 Political Behavior in Organizations Political Behavior –The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes. –Common Political Behaviors Inducement—offering to give something to someone else in return for that person’s support. Persuasion—persuading others to support a goal on grounds that are objective and logical as well as subjective and personal. Creation of an obligation—providing support for another person’s position that obliges that person to return the favor at a future date. Coercion—using force to get one’s way. Impression management—making a direct and intentional effort to enhance one’s image in the eyes of others. Political Behavior –The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes. –Common Political Behaviors Inducement—offering to give something to someone else in return for that person’s support. Persuasion—persuading others to support a goal on grounds that are objective and logical as well as subjective and personal. Creation of an obligation—providing support for another person’s position that obliges that person to return the favor at a future date. Coercion—using force to get one’s way. Impression management—making a direct and intentional effort to enhance one’s image in the eyes of others.

31. Copyright © by Houghton Mifflin Company. All rights reserved. 17–31 Political Behavior in Organizations (cont’d) Managing Political Behavior –Be aware that even if actions are not politically motivated, others may assume that they are. –Reduce the likelihood of subordinates engaging in political behavior by providing them with autonomy, responsibility, challenge, and feedback. –Avoid using power to avoid charges of political motivation. –Get disagreements and conflicts out in the open so that subordinates have less opportunity to engage in political behavior. –Avoid covert behaviors that give the impression of political intent even if none exists. Managing Political Behavior –Be aware that even if actions are not politically motivated, others may assume that they are. –Reduce the likelihood of subordinates engaging in political behavior by providing them with autonomy, responsibility, challenge, and feedback. –Avoid using power to avoid charges of political motivation. –Get disagreements and conflicts out in the open so that subordinates have less opportunity to engage in political behavior. –Avoid covert behaviors that give the impression of political intent even if none exists.