Management Principles WEEK 7 Leadership Part IV: Leading L E A R N I N G O U T C O M E S Chapter 16: Leadership 1. Define leader and explain the difference between managers and leaders. 2. Summarize the conclusions of trait theories of leadership. 3. Describe the Fiedler contingency model. 4. Summarize the path-goal model of leadership. 5. Explain Situational Leadership. 6. Identify the qualities that characterize charismatic leaders. 7. Describe the skills that visionary leaders exhibit. 11 2 1
L E A R N I N G O U T C O M E S (cont d) After reading this chapter, you will be able to: 8. Explain the four specific roles of effective team leaders. 9. Identify the five dimensions of trust. 11 3 Course outline Definition Behavioral theory Fiedler Contingency theory Situational leadership Charismatic leadership Visionary leadership Emotional intelligence 11 4 2
DEFINITION 11 5 Managers Versus Leaders Not all leaders are managers, nor are all managers leaders. Managers Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish. Leaders Persons with managerial and personal power who can influence others to perform actions beyond those that could be dictated by those persons formal (position) authority alone. 11 6 3
Defining Leadership Leader Versus Manager Managing Broader in scope Focuses on non-behavioral issues Leading Emphasizes behavioral issues Leadership Today 4
Leadership mistakes from the Empire 11 9 Trait Theories Of Leadership Trait Theories of Leadership Theories that attempt to isolate characteristics that differentiate leaders from nonleaders Attempts to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed. Attempts to identify traits consistently associated with leadership have been more successful. 11 10 5
EXHIBIT 11 1 Six Traits That Differentiate Leaders from Nonleaders 1. Drive 2. Desire to lead 3. Honesty and integrity 4. Self-confidence 5. Intelligence 6. Job-relevant knowledge Source: Reprinted from Leadership: Do Traits Really Matter? by S. A. Kirkpatrick and E. A. Locke by permission of Academy of Management Executive, May 1991, pp. 48 60. 1991 by Academy of Management Executive. 11 11 Exercise Name a GOOD leader in a movie you saw Why is he/she a good leader? Name a BAD leader Why is he/she a bad leader? 2008 Prentice Hall, Inc. All rights reserved. 11 12 6
BEHAVIORAL THEORY 11 13 Behavioral Theories Of Leadership Behavioral Theories of Leadership Attempt to isolate behaviors that differentiate effective leaders from ineffective leaders. Behavioral studies focus on identifying critical behavioral determinants of leadership that, in turn, could be used to train people to become leaders. 11 14 7
Identifiable Leadership Behaviors Autocratic Style of Leadership Centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation. Democratic Style of Leadership Involves employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback. A democratic-consultative leader seeks input and hears the concerns and issues of employees but makes the final decision him or herself. A democratic-participative leader often allows employees to have a say in what s decided. 11 15 Identifiable Leadership Behaviors (cont d) Laissez-Faire Style of Leadership Gives employees complete freedom to make decisions and to decide on work methods Conclusions about Leadership Styles The laissez-faire leadership style is ineffective. Quantity of work is equal under authoritarian and democratic leadership styles. Quality of work and satisfaction is higher under democratic leadership. 11 16 8
The Situational Approach to Leadership: A Focus on Leader Behavior Leadership Situations and Decisions The Tannenbaum and Schmidt Leadership Continuum The manager: 1. Makes the decision and announces it 2. Sells the decision 3. Presents ideas and invites questions 4. Presents a tentative decision that is subject to change 5. Presents the problem, gets suggestions, and then makes the decision 6. Defines the limits and asks the group to make a decision 7. Permits the group to make decisions within prescribed limits EXHIBIT 11 2 Continuum of Leader Behavior Source: Adapted and reprinted by permission of the Harvard Business Review. An exhibit from How to Choose a Leadership Pattern by R. Tannenbaum and W. Schmidt, May June 1973. Copyright 1973 by the President and Fellows of Harvard College; all rights reserved. 11 18 9
The Ohio State Studies Studies that sought to identify independent dimensions of leader behavior Initiating structure The extent to which a leader defines and structures his or her role and the roles of employees to attain goals Consideration The extent to which a leader has job relationships characterized by mutual trust, respect for employees ideas, and regard for their feelings 11 19 The University Of Michigan Studies Studies that sought to identify the behavioral characteristics of leaders related to performance effectiveness Employee oriented leader Emphasizes interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences. Production oriented leader Emphasizes technical or task aspects of a job, is concerned mainly with accomplishing tasks, and regards group members as a means to accomplishing goals. 11 20 10
CONTINGENCY THEORY 11 21 Contingency Theories Of Leadership The Fiedler Contingency Leadership Model Effective group performance depends on the proper match between the leader s style of interacting with employees and the degree to which the situation gives control and influence to the leader Uses Least-preferred co-worker (LPC) questionnaire, to measure the leader s task or relationship orientation. Identified three situational criteria leader member relations, task structure, and position power that could be manipulated match an inflexible (fixed) leadership style. 11 22 11
Contingency Theories (cont d) Path-Goal Theory (House) It is a leader s job to assist followers in attaining their goals and to provide the necessary direction and support A leader s motivational behavior: Makes employee need satisfaction contingent on effective performance. Provides the coaching, guidance, support, and rewards necessary for effective performance. Assumes that the leader s style is flexible and can be changed to adapt to the situation at hand. 11 23 Path-Goal Leadership Behaviors Directive leader Lets employees know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. Supportive leader Is friendly and shows concern for the needs of employees. Participative leader Consults with employees and uses their suggestions before making a decision. Achievement-oriented leader Sets challenging goals and expects employees to perform at their highest levels. 11 24 12
EXHIBIT 11 5 Path-Goal Theory 11 25 Contingency Leadership Models Leader-Participation Model (Vroom, Yetton and Jago) Provides a sequential set of rules for determining the form and amount of participation a leader should exercise in decision making according to different types of situations. The model is a decision tree incorporating seven contingencies (whose relevance can be identified by making yes or no choices) and five alternative leader ship styles. Assumes an adaptable leadership style. 11 26 13
EXHIBIT 11 6 Contingency Variables in the Revised Leader-Participation Model QR: Quality Requirement CR: Commitment Requirement LI: Leader Information ST: Problem Structure CP: Commitment Probability GC: Goal Congruence CO: Employee Conflict SI: Employee Information TC: Time Constraint GD: Geographical Dispersion MT: Motivation Time MD: Motivation Development Source: V. H. Vroom and A. G. Jago, The New Leadership: Managing Participation in Organizations (Upper Saddle River, NJ: Prentice Hall, 1988), pp. 111 12. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey. 11 27 SITUATIONAL LEADERSHIP 11 28 14
Situational Leadership Situational Leadership Theory (SLT) Leaders should adjust their leadership styles telling, selling, participating, and delegating in accordance with the readiness of their followers. Acceptance: Leader effectiveness reflects the reality that it is the followers who accept or reject the leader. Readiness: a follower s ability and willingness to perform. At higher levels of readiness, leaders respond by reducing control over and involvement with employees. 11 29 EXHIBIT 11 6 Contingency Variables in the Revised Leader-Participation Model 11 30 15
CHARISMATIC LEADERSHIP 11 31 Emerging Approaches To Leadership Charismatic Leadership Theory Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. People working for charismatic leaders are motivated to exert extra work effort and, because they like and respect their leaders, express greater satisfaction. Charisma leadership appears to be most appropriate when the followers task has an ideological component or when the environment involves a high degree of stress and uncertainty. 11 32 16
EXHIBIT 11 8 Key Characteristics of Charismatic Leaders 1. Self-confidence 2. Vision 3. Ability to articulate the vision 4. Strong convictions about the vision 5. Behavior that is out of the ordinary 6. Appearance as a change agent 7. Environmental sensitivity Source: Based on J. A. Conger and R. N. Kanungo, Behavioral Dimensions of Charismatic Leadership, in J. A. Conger and R. N. Kanungo, Charismatic Leadership (San Francisco: Jossey-Bass, 1988), p. 91. 11 33 What is a leader? 11 34 17
VISIONARY LEADERSHIP 11 35 Visionary Leadership A vision should create enthusiasm, bringing energy and commitment to the organization. The key properties of a vision are inspirational possibilities that are value centered, realizable, and have superior imagery and articulation. Visionary Leadership Is the ability to create and articulate a realistic, credible, attractive vision of the future that grows out of and improves upon the present 11 36 18
Skills of Visionary Leaders The ability to explain the vision to others. Make the vision clear in terms of required actions and aims through clear oral and written communication. The ability to express the vision not just verbally but through the leader s behavior. Behaving in ways that continually convey and reinforce the vision. The ability to extend the vision to different leadership contexts. Sequencing activities so the vision can be applied in a variety of situations. 11 37 Transactional Leaders versus Transformational Leaders Transactional Leaders Guide or motivate their followers toward established goals by clarifying role and task requirements. Transformational Leaders Inspire followers to transcend their own self-interests for the good of the organization and are capable of having a profound and extraordinary effect on followers. 11 38 19
The Challenge of Team Leadership Becoming an effective team leader requires: Learning to share information. Developing the ability to trust others. Learning to give up authority. Knowing when to leave their teams alone and when to intercede. New roles that team leaders take on: Managing the team s external boundary. Facilitating the team process. 11 39 EXHIBIT 11 9 Team Leader Roles 11 40 20
Other Leadership Variables National Culture Leadership styles reflect the cultural conditions that followers have come to expect. Leadership theories developed in the United States have an American bias. Power distance varies among cultures and affects participative management s effectiveness High power distance = autocratic leadership style Low power distance = participative leadership style 11 41 EMOTIONAL INTELLIGENCE 11 42 21
Six leadership styles 11 43 Other Leadership Variables (cont d) Emotional Intelligence (EI) Considered to be the trait difference that makes an individual into a star performer. Is an essential element of effective leadership. Components of EI Self-awareness Self-management Self-motivation Empathy Social skills 11 44 22
Emotional Intelligence From a scientific (rather than a popular) standpoint, emotional intelligence is the ability to accurately perceive your own and others emotions; to understand the signals that emotions send about relationships; and to manage your own and others emotions. It doesn t necessarily include the qualities (like optimism, initiative, and self-confidence) that some popular definitions ascribe to it. John D. Mayer Harvard Business Review 2004 2008 Prentice Hall, Inc. All rights reserved. 11 45 Steps in Building Trust 1. Practice openness. 2. Be fair. 3. Speak your feelings. 4. Tell the truth. 5. Be consistent. 6. Fulfill your promises. 7. Maintain confidences. 8. Demonstrate confidence. 11 47 23
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