Management Part IV: Leading Ch. 13. Leadership Dan C. Lungescu, PhD, assistant professor 2015-2016
Course outline Management Part I: Introduction Part II: Planning Part III: Organizing Part IV: Leading Part V: Controlling
Part IV outline Management Part IV: Leading Ch. 12. Motivation Ch. 13. Leadership Ch. 14. Communication Ch. 15. Managing groups
Learning objectives After studying this chapter, you should: Define power and review the bases of individual power. Discuss the concept of empowerment. Define and discuss the role of formal and emergent leadership. Explain and evaluate the trait approach to leadership. Explain the task function and social-emotional function of emergent leadership and the concepts of consideration and initiating structure. Describe and evaluate Fiedler s contingency theory and other situational theories.
Chapter 13 outline A. Power in organizations B. What is a leader? C. The nature of leadership D. Leadership traits E. Leadership styles F. Contingent leadership
A. Power in organizations Power The capacity to influence others who are in a state of dependence. Power is only the capacity it is not always exercised. Power is only the possibility, not the right to influence. Power can flow in any direction in an organization. This broad concept applies to both individuals and groups. The fact that the target of power is dependent on the power holder does not imply that a poor relationship exists between the two. Outline» A. Power in organizations
The bases of individual power John French and Bertram Raven: Positional power Legitimate power. Reward power. Coercive power. Resource power. Personal power Referent power. Expert power. Information power. Connection power. Outline» A. Power in organizations» The bases of individual power
I. Positional power 1. Legitimate power (formal power, authority) Derived from a person s position or job in an organization. 2. Reward power Derived from the ability to provide positive outcomes and prevent negative outcomes. 3. Coercive power Derived from the use of punishment and threat. 4. Resource power it bakes up legitimate power it bakes up legitimate power Derived from the right to allocate resources and to control others access to those resources. Outline» A. Power in organizations» The bases of individual power» I. Positional power
II. Personal power 1. Referent power Derived from being well liked by others. It stems from identification with the power holder. 2. Expert power Derived from having special information or expertise that is valued by an organization. It corresponds to difficulty of replacement. 3. Information power Derived from having access to non-professional information. 4. Connection power Derived from being able to use links to other influential people to support the more direct power of the power holder. Outline» A. Power in organizations» The bases of individual power» II. Personal power
Empowerment Empowerment Giving people the authority, opportunity, and motivation to take initiative and solve organizational problems.» putting power where it is needed. 1. Authority Authority to solve an organizational problem (legitimate power) might be included in a job description, or a boss might delegate it to a subordinate. 2. Opportunity Having opportunity usually means freedom from bureaucratic barriers and other system problems that block initiative. 3. Motivation Hiring people who will be intrinsically motivated by power and opportunity; aligning extrinsic rewards with successful performance; expressing confidence in subordinates abilities. Outline» A. Power in organizations» Empowerment
Power and performance Effective Performance Ineffective Inadequate Sufficient Excessive Power Outline» A. Power in organizations» Power and performance
B. What is a leader? Outline» B. What is a leader?
What is a leader? (2) Leader Someone situated in front of a group. A person who conducts, guides, or inspires others. The person exerting the influence. Head, boss, chief, director, conductor, ruler, strongman. Anybody who makes people do what he/she wants them to do, even if they do not wish to do so. Leader Person or function (rank) that holds a dominant or superior position within its field, and is able to exercise a high degree of control or influence over others. Leader The one who has followers. Outline» B. What is a leader? (2)
Types of leaders Formal leader (manager) Officially in front of his/her group. Followed because of his/her position. Informal leader (emergent leader) Accepted as leaders by his/her followers. Followed because of his/her personality. Outline» B. What is a leader?» Types of leaders
Leader s roles Create an inspiring vision and lead by example. Empower, inspire and energize people. Build and lead a team. Outline» B. What is a leader?» Leader s roles
C. The nature of leadership Leadership The influence that particular individuals exert on the goal achievement of others in an organizational context. 1. Relationship Leadership is a relationship between those who aspire to lead and those who choose to follow. 2. Process Leadership is a process whereby an individual influences a group of individuals to achieve a common goal. 3. Ability Leadership is the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organization. Outline» C. The nature of leadership
Three major points in leadership Follower Leader Leadership Situation Outline» C. The nature of leadership» Three major points in leadership
Major issues in leadership Are leaders born or made? Leadership traits Leader s behavior (style) Contingency theories Modern leadership Outline» C. The nature of leadership» Major issues in leadership
D. Leadership traits Leadership traits Distinctive internal qualities or characteristics of an individual, such as physical characteristics, personality characteristics, skills and abilities, and social factors. Traits usually associated with leadership effectiveness: Intelligence Energy Self-confidence Dominance Motivation to lead Emotional stability Honesty and integrity Need for achievement Traits associated with individuals identified as leaders: intelligence, dominance, aggressiveness, decisiveness. Outline» D. Leadership traits
E. Leadership styles Decision-making styles (authoritarianism) I. Theories X and Y [see Chapter 2] II. Iowa studies III. The leadership continuum Concern for structure vs. people IV. Ohio State studies V. Michigan studies VI. Leadership grid Outline» E. Leadership styles
II. Iowa studies Kurt Lewin [1890-1947] (followed by Lippitt and White)» leader styles. 1. Autocratic 1.a. Directive autocrat 1.b. Permissive autocrat 1+. Paternalistic 2. Democratic 2.a. Directive democrat 2.b. Permissive democrat 3. Laissez-faire Outline» E. Leadership styles» II. Iowa studies
Iowa studies (2) 1. Autocratic The leader makes unilateral decisions, dictates work methods, limits worker knowledge about goals to just the next step to be performed, and sometimes gives feedback that is punitive. 1+. Paternalistic The leader is a dictator; however, when making decisions he/she takes into account the best interests of the subordinates. 2. Democratic The leader involves the group in decision making, lets the group determine work methods, makes overall goals known, and uses feedback as an opportunity for helpful coaching. 3. Laissez-faire The leader generally gives the group complete freedom, provides necessary materials, participates only to answer questions, and avoids giving feedback. Outline» E. Leadership styles» II. Iowa studies (2)
III. The leadership continuum Robert Tannenbaum & Warren Schmidt» a continuum of leadership behaviors. Boss-centered leadership Use of authority by the manager 1. Tells: Manager makes decision and announces it. 2. Sells: Manager sells decision. 3. Suggests: Manager presents ideas and invites questions. 4. Consults: Manager presents tentative decision subject to change. 5. Joins: Manager presents problem, gets suggestions, makes decision. 6. Delegates: Manager defines limits; asks group to make decision. 7. Abdicates: Manager permits subordinates to function within limits defined by superior. Outline» E. Leadership styles» III. The leadership continuum Subordinate-centered leadership Area of freedom for subordinates 1 2 3 4 5 6 7
IV. Ohio State studies The two most important dimensions in leadership: 1. Initiating structure The degree to which a leader defines his/her own role and the roles of subordinates in terms of achieving unit goals. 2. Consideration The degree to which a leader builds mutual trust with subordinates, respects their ideas, and shows concern for their feelings. These characteristics could be either high or low. They were independent of one another. Outline» E. Leadership styles» IV. Ohio State studies
V. Michigan studies Two types of leaders: 1. Job centered 2. Employee centered Three critical characteristics of effective leaders: 1. Task oriented behavior 2. Relationship-oriented behavior 3. Participative leadership Outline» E. Leadership styles» V. Michigan studies
VI. Leadership grid Concern for people 9 8 7 6 5 4 3 2 1 1,9 Country club management 1,1 Impoverished management 5,5 Organization man management 9,9 Team management 9,1 Authorityobedience Robert Blake & Jane Mouton Original name: managerial grid. 1 2 3 4 5 6 7 8 9 Concern for production Outline» E. Leadership styles» VI. Leadership grid
Leadership grid (2) 9,1 Authority-obedience Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 1,9 Country club management Thoughtful attention to needs of people for satisfying relationships leads to a comfortable friendly organization atmosphere and work tempo. 1,1 Impoverished management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. 9,9 Team management Work accomplishment is from committed people; interdependence through a common stake in organization purpose leads to relations of trust and respect. 5,5 Organization man management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. Outline» E. Leadership styles» VI. Leadership grid (2)
F. Contingent leadership Contingent leadership (situational theories) Theories of leadership that take into consideration important situational factors. The most important situational theories: I. Situational leadership theory II. Feadler s contingency model III. Normative leadership model IV. Path-goal theory Outline» F. Contingent leadership
I. Situational leadership theory Situational leadership theory A theory based on the premise that leaders need to alter their behaviors depending on one major situational factor the readiness of followers (their organizational maturity). Authors: Paul Hersey & Ken Blanchard. Follower readiness: 1. Very high: able and willing or confident 2. High: able but unwilling or insecure 3. Low: unable but willing or confident 4. Very low: unable and unwilling or insecure Outline» F. Contingent leadership» I. Situational leadership theory
Leadership styles Four leadership quadrants prescribes the appropriate leadership style for a given level of readiness: 1. Telling style Giving individuals specific directions on what to do and how to do it. 2. Selling style Giving specific directions, but it is also supportive of the individual s willingness and enthusiasm. 3. Participating style Supportive style, in which the leader emphasizes two-way communication and collaboration. 4. Delegating style Little support or direction. Outline» F. Contingent leadership» I. Situational leadership theory» Leadership styles
Choosing a leadership style Relationship behavior (Supportive behavior) participating selling delegating telling Task behavior (Guidance) very high high low very low Follower readiness Outline» F. Contingent leadership» I. Situational leadership theory» Choosing a style
II. Fiedler s contingency model Fiedler s contingency model A situational approach that posits that leaders differ in the degrees of their orientation toward the task versus that toward the people it identifies the types of situations in which each kind of leader is likely to do best. LPC orientation A personality trait indicating the extent to which an individual places a higher priority or value on personal relationships than on task accomplishment. LPC test The leader is asked to describe the person with whom he/she can work least well by rating the person on a range of 1 to 8 points for each set. Outline» F. Contingent leadership» II. Fiedler s contingency model LPC = least preferred coworker
LPC test (sample items) Unpleasant 1 2 3 4 5 6 7 8 Pleasant Unfriendly 1 2 3 4 5 6 7 8 Friendly Rejecting 1 2 3 4 5 6 7 8 Accepting Tense 1 2 3 4 5 6 7 8 Relaxed Distant 1 2 3 4 5 6 7 8 Close Cold 1 2 3 4 5 6 7 8 Warm Hostile 1 2 3 4 5 6 7 8 Supportive Boring 1 2 3 4 5 6 7 8 Interesting Quarrelsome 1 2 3 4 5 6 7 8 Harmonious Outline» F. Contingent leadership» II. Fiedler s contingency model» LPC test (sample items)
LPC test (sample items) (2) Gloomy 1 2 3 4 5 6 7 8 Cheerful Closed 1 2 3 4 5 6 7 8 Open Backbiting 1 2 3 4 5 6 7 8 Loyal Untrustworthy 1 2 3 4 5 6 7 8 Trustworthy Inconsiderate 1 2 3 4 5 6 7 8 Considerate Nasty 1 2 3 4 5 6 7 8 Nice Disagreeable 1 2 3 4 5 6 7 8 Agreeable Insincere 1 2 3 4 5 6 7 8 Sincere Unkind 1 2 3 4 5 6 7 8 Kind Outline» F. Contingent leadership» II. Fiedler s contingency model» LPC test (sample items) (2)
Assessing the situation Three situational factors that affect the degree of favorability (the degree of situational control) for a leader: 1. Leader-member relations The extent to which a leader has the support of group members. 2. Task structure The extent to which a task is clearly specified with regard to goals, methods, and standards of performance. 3. Position power The amount of power that the organization gives the leader to accomplish necessary tasks. Outline» F. Contingent leadership» II. Fiedler s contingency model» Assessing the situation
Matching style and situation Correlations between LPC orientation and performance 1 0 Relationship-motivated leaders perform better -1 Position power Task-motivated leaders perform better strong weak strong weak strong weak strong weak Task structure high low high low Leader-member relations good poor Situational favorability/control Outline» F. Contingent leadership» II. Fiedler s contingency model» Matching style and situation
III. Normative leadership model Normative leadership model A model that helps leaders assess critical situational factors that affect the extent to which they should involve subordinates in particular decisions. Author: Victor Vroom. Critical situational factors (questions) Decision styles (leadership styles) Choosing one leadership style Outline» F. Contingent leadership» III. Normative leadership model
Critical situational factors 1. QR quality requirement: how important is the technical quality of this decision? 2. CR commitment requirement: how important is subordinate commitment to the decision? 3. LI leader s information: do you have sufficient information to make a high-quality decision? 4. ST problem structure: is the problem well-structured? 5. CP commitment probability: if you were to make that decision by yourself, is it reasonably certain that your subordinate(s) would be committed to the decision? 6. GC goal congruence: do subordinates share the organization goals to be attained in solving this problem? 7. CO subordinate conflict: is conflict among subordinates over preferred solutions likely? 8. SI subordinate information: do subordinates have sufficient information to make a high-quality decision? Outline» F. Contingent leadership» III. Normative leadership model» Critical situational factors
Decision styles A 1 you solve the problem or make the decision yourself using the information available to you at the present time. A 2 you obtain any necessary information from subordinates, then decide on a solution yourself. C 1 you share the problem with the relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group. Then you make the decision. C 2 you share the problem with your subordinates in a group meeting. In this meeting you obtain their ideas and suggestions. Then you make the decision. P you share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach agreement (consensus) on a solution. Outline» F. Contingent leadership» III. Normative leadership model» Decision styles
Choosing one leadership style QR CR LI ST CP GC CO SI yes no? A 1?? P?????? C 2 P????????? C 2 C 2 A 2 C 1? P A 1 Outline» F. Contingent leadership» III. Normative leadership model» Choosing one decision style
Dan C. Lungescu, PhD, assistant professor 2015-2016