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In corporate America, sometimes good employees leave a company because a manager did not help them achieve their personal goals, or they are a part of very productive teams where managers integrate both the employees personal goals and corporate goals. Organizations need leaders not only to implement corporate strategies but also to help employees grow, so they can contribute and operate at high levels within the organization to achieve goals. 3
In terms of leadership behavior, a leader should 1) model the way, 2) inspire a vision, 3) challenge the process, 4) enable others to act, and 5) encourage the heart (Kouzes & Posner, 2007). 4
Traditional approaches to leadership theory started with the trait approach, understanding the leader s personal characteristics such as drive, leadership motivation, integrity, selfconfidence, and knowledge of the business. Other theories include the behavioral approach that focuses on behavioral traits and leader member exchange, involving a focus on group maintenance and individual behaviors. 5
The next phase of leadership theory is the autocratic style with a clear difference between leaders and workers, and where people at the top make decisions without regard to the lower level employees. Conversely, the bureaucratic style involves employees in decision making, but the leader typically makes the final decision. 6
Democratic and participative styles are the same. Leaders encourage employees to provide feedback and make suggestions, whereas charismatic leaders are confident and very passionate about their goals. Bill Clinton, Barack Obama, and Martin Luther King, Jr. are charismatic leaders. 7
Blanchard s (2008) situational leadership theory proposes that leaders change their leadership style based on the situation and the followers job maturity and psychological theory. This style includes directing, coaching, supporting, and delegating. Transactional leaders use bargaining power to achieve goals. This style motivates employees with raises and promotions. However, transformational leaders seek to change and develop employees. These leaders are naturally charismatic and committed to innovation, social responsibility, and motivating and engaging their followers. Transformational leaders are good role models with a tendency to shape culture. 8
Decision making in today s organizations is about shared leadership where executives share positions with two or more people, and distributed leadership is where an executive is in place, but lower level employees in the organization make the decisions. Characteristics of these models include decreased bureaucracies, high levels of trust and transparency, investments in learning, values, and buy in and commitment to the process. Great leaders have people skills, character, and build intellectual capital; they generate ideas and invite others to participate (Bennis, 2000). Mentoring and succession planning will ensure future leaders as decision makers and the future success of an organization. We also see self managed leaders, yet they make decisions based on a project team or the stakeholder group. The team might include a chief information officer (CIO), managers, supervisors, executives, and other team members with different forms of expertise. These teams may consist of a host of leadership styles. To solve problems or to implement a strategy, these leaders need skills in collaboration, communications, and problem solving. Great leaders know how to handle challenging decisions by balancing emotional intelligence and reason to make decisions that benefit stakeholders, employees, and customers (Goleman, Boyatzis, & McKee, 2002). 9
The global scope of leadership is cross functional across geographies and departments, such as supply chain management, sales management, product management, financial management, and marketing structures. Globalization, customers, and competition have made organizations flatter, more fluid, and more virtual. These complex structures include managing diverse cultures, networking, collaboration, team building, adapting to dynamic change, and worldwide awareness (Andrews, 2004). Continuous learning and up to date technology is imperative to achieve productivity, to accomplish strategic development and implementation, and to achieve business success. Organizations desire employee and customer satisfaction, skills of innovation, creativity, productivity, return on investments, and continuous learning in implementing the right technology to accomplish goals. 10
The next few slides consist of self check questions for you to test your knowledge regarding the content covered in this unit. The correct answer will be indicated on the next slide. True or False: In leadership theory, the autocratic style involves employees in decision making, but the leader typically makes the final decision. 11
The answer is False! The bureaucratic style involves employees in decision making, but the leader typically makes the final decision. The autocratic style is where people at the top make decisions without regard to the lower level employees. 12
True or False: Democratic and participative styles are the same. 13
True! Democratic and participative styles are the same. Leaders encourage employees to provide feedback and make suggestions, whereas charismatic leaders are confident and very passionate about their goals. 14
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