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 12 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 LECTURE OUTLINE How leaders influence others Searching for leadership traits Identifying leader behaviours Developing situational theories Promoting innovation: Transformational leadership Are leaders necessary?

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–3 LEADERSHIP Process of influencing others to achieve organisational goals.

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 Sources of leadership power: Legitimate power Power stemming from a position’s placement in the managerial hierarchy Reward power Power based on the capacity to provide valued rewards to others Coercive power Power based on the ability to punish others

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 Sources of leadership power (cont.): Expert power Power based on the possession of expertise valued by others Information power Power based on access and control over the distribution of information Referent power Power resulting from being liked, admired or identified with

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–6 HOW LEADERS INFLUENCE OTHERS Coercive powerReward power Legitimate power/ formal authority Expert power Referent power Information power

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–7 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

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–8 HOW LEADERS INFLUENCE OTHERS Likely reaction to use of power: = Resistance = Compliance = Commitment Referent expert Legitimate information reward Coercion

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 TRAITS Distinctive internal qualities or characteristics of an individual, such as physical and personality characteristics, skills, abilities and social factors

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–10 LEADERSHIP TRAITS 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

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–11 LEADERSHIP BEHAVIOUR Theoretical approach based on the idea that specific behaviours may make some leaders more effective than others.

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–12 LEADERSHIP BEHAVIOUR Iowa & Michigan studies: Iowa Looked at leadership styles (autocratic, democratic, laissez faire) Workers preferred democratic style but this was not best for performance Michigan Employee-centred leaders superior to job-centred leaders

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–13 LEADERSHIP BEHAVIOUR Ohio State studies: Suggested that the ideal was for leaders to combine job-centredness with an ability to build mutual trust with subordinates

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–14 LEADERSHIP BEHAVIOUR Ohio State studies: Two key behaviours 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

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–15 LEADERSHIP GRID 1 2 3 4 5 6 7 8 9 Concern for production Concern for people

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–16 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

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 SITUATIONAL THEORY Situational theory: Theories of leadership taking into consideration important situational factors

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–18 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?

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–19 DEVELOPING SITUATIONAL THEORY Fiedler’s contingency theory LPC orientation Assessing the situation Matching leadership style to situation

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–20 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. Range of options is from: A1: autocratic decision making to G11: democratic decision making

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–21 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.

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–22 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

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–23 DEVELOPING LEADERSHIP THEORY Path–goal theory Theory attempting to explain how leader behaviour can positively influence the motivation and job satisfaction of subordinates

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–24 DEVELOPING LEADERSHIP THEORY Path–goal theory Leader behaviours Directive leader behaviour Supportive leader behaviour Participative leader behaviour Achievement-oriented leader behaviour Situational factors Subordinate characteristics Context characteristics Choosing leader behaviour to fit above

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–25 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

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–26 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

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–27 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.

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–28 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

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–29 ARE LEADERS NECESSARY? Some argue that leadership’s importance is overrated and in many contexts makes little difference. (Yukl 1989)

30. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–30 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

31. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–31 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

32. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–32 LEADERSHIP & THE ORGANISATIONAL CYCLE Entrepreneurial Collectivity Formalisation & control Formalisation & control Elaboration of structure Elaboration of structure Transformational Transactional Transformational

33. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–33 LECTURE SUMMARY How leaders influence others – Sources of power – Use of power Searching for leadership traits – Inconclusive results Identifying leadership behaviour – Iowa, Michigan, Ohio studies – Leadership styles, employee versus job- centredness

34. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 12–34 LECTURE SUMMARY Developing situational theory Fiedler’s contingency model, Normative model, Situational leadership model, Path–goal theory Transformational leadership Charisma, individual consideration & intellectual stimulation Are leaders necessary? Neutralisers, substitutes