CHAPTER 17 LEADERSHIP. Leadership is a process of influencing a group to achieve goals

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1 CHAPTER 17 LEADERSHIP Leadership is a process of influencing a group to achieve goals

2 Early Leadership Theories Trait Theories (1920s -1930s) Research focused on identifying personal characteristics that differentiated leaders from nonleaders was unsuccessful. Later research on the leadership process identified seven traits associated with successful leadership: Drive, the desire to lead, honesty and integrity, selfconfidence, intelligence, job-relevant knowledge, and extraversion

3 Exhibit 17-1: Seven Traits Associated with Leadership

4 Early Leadership Theories Behavioral Theories University of Iowa Studies (Kurt Lewin) Identified three leadership styles: Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez faire style: hands-off management Research findings: mixed results No specific style was consistently better for producing better performance. Employees were more satisfied under a democratic leader than under an autocratic leader.

5 The Managerial Grid Appraises leadership styles using two dimensions: Concern for people Concern for production Places managerial styles in five categories: Impoverished management Task management Middle-of-the-road management Country club management Team management

6 Managerial Grid by Blake & Mouton

7 Exhibit 17-2: Behavioral Theories of Leadership (cont.)

8 Contemporary Views of Leadership transactional vs. transformational leadership Transactional Leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational Leaders inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements. Transactional leaders guide or motivate followers to work toward established goals by exchanging rewards for their productivity. Transformational leaders stimulate and inspire followers to achieve extraordinary outcomes. They pay attention to the concerns and developmental needs of individual followers they change followers awareness of issues by helping those followers look at old problems in new ways. They are able to excite, arouse and inspire followers to exert effort to achieve group goals. Transformational leadership develops from transactional leadership. It produces levels of employee effort and performance that go beyond what would occur with a transactional approach alone. Moreover transformational leadership is more than charisma as it instils followers the ability to question not only established views but views held by the leader. Research shows that transformational leaders were evaluated as more effective, higher performers, mote interpersonally sensitive an hence more promotable than their transactional counterparts. They are also strongly correlated with lower turnover rates an higher levels of productivity, employee satisfaction, creativity, goal attainment and follower well-being.

9 Distinguishing Leadership from Management Management 1. Engages in day-to-day caretaker activities: Maintains and allocates resources 2. Exhibits supervisory behaviour: Acts to make others maintain standard job behaviour 3. Administers subsystems within organizations 4. Asks how and when to engage in standard practice 5. Acts within established culture of the organization 6. Uses transactional influence: Induces compliance in manifest behaviour using rewards,. sanctions, and formal authority 7. Relies on control strategies to get things done by subordinates 8. Status quo supporter and stabilizer Leadership 1. Formulates long-term objectives for reforming the system: Plans strategy and tactics 2. Exhibits leading behaviour: Acts to bring about change in others congruent with longterm objectives 3. Innovates for the entire organization 4. Asks what and why to change standard practice 5. Creates vision and meaning for the organization 6. Uses transformational influence: Induces change in values, attitudes, and behaviour using personal examples and expertise 7. Uses empowering strategies to make followers internalize values 8. Status quo challenger and change creator