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9 chapter Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Leadership and decision- making PowerPoint Presentation prepared by Carol Vollmer Pope Alverno College Instructor Lecture PowerPoints
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. © 2009 Pearson Education, Inc.2
After reading this chapter, you should be able to: 1.Define leadership and distinguish it from management. 2.Summarize early approaches to the study of leadership. 3.Discuss the concept of situational approaches to leadership. 4.Describe transformational and charismatic perspectives on leadership. 5.Identify and discuss leadership substitutes and neutralizers. L E A R N I N G O B J E C T I V E S © 2009 Pearson Education, Inc.
After reading this chapter, you should be able to: 6.Discuss leaders as coaches and examine gender and cross-cultural issues in leadership. 7.Describe strategic leadership, ethical leadership, and virtual leadership. 8.Relate leadership to decision-making and discuss both rational and behavioral perspectives on decision-making © 2009 Pearson Education, Inc.
Whats in It for Me? Why does understanding leadership matter to you? – By mastering the material in this chapter, youll benefit in two ways: 1.Youll better understand how you can more effectively function as a leader 2.Youll have more insight into how your manager or boss strives to motivate you through his or her own leadership © 2009 Pearson Education, Inc.
The Nature of Leadership What Is Leadership? – The processes and behaviors used by someone, such as a manager, to motivate, inspire, and influence the behaviors of others. Are Leadership and Management the Same? – No. A person can be a manager, a leader, both, or neither. © 2009 Pearson Education, Inc.
Source: The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from A Force for Change: How Leadership Differs from Management, by John P. Kotter, Copyright 1990 by John P. Kotter, Inc. TABLE 9.1 Kotters Distinctions Between Management and Leadership © 2009 Pearson Education, Inc.
Early Approaches to Leadership Trait Approaches to Leadership – Focused on identifying essential leadership traits Intelligence, dominance, self-confidence, energy, activity (versus passivity), and knowledge about the job Physical traits (height, body shape, handwriting) – Yielded inconsistent results – Recent research has focused on a limited set of traits Emotional intelligence, mental intelligence, drive, motivation, honesty and integrity, self-confidence, knowledge of the business, and charisma © 2009 Pearson Education, Inc.
Early Approaches to Leadership (contd) Behavioral Approaches to Leadership – Focused on the behaviors of effective leaders versus ineffective leaders – Assumed that the behaviors of effective leaders would be the same across all situations Task-focused leader behaviors related to increasing the performance of employees Employee-focused leader behaviors related to job satisfaction, motivation, and well-being of employees © 2009 Pearson Education, Inc.
The Situational Approach to Leadership Situational Approach – Assumes that appropriate leader behavior varies from one situation to another – Continuum of leadership behavior Considers influences of the characteristics of the leader, subordinates, and the situation Continuum ranges from having the leader make decisions alone (i.e., task-focused) to having employees make decisions with only minimal guidance from the leader © 2009 Pearson Education, Inc.
Source: Harvard Business Review. An exhibit from How to Choose a Leadership Pattern by Robert Tannenbaum and Warren Schmidt (May-June 1973). Copyright 1973 by the President and Fellows of Harvard College; all rights reserved. FIGURE 9.1 The Leadership Continuum © 2009 Pearson Education, Inc.
Leadership Through the Eyes of Followers Transformational Leadership – The set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively Transactional Leadership – Basic management involving routine, regimented activities (leading during a period of stability) © 2009 Pearson Education, Inc.
Leadership Through the Eyes of Followers (contd) Charisma – Charisma: A form of interpersonal attraction that inspires support and acceptance Charismatic Leadership – Influence based on the leaders personal charisma © 2009 Pearson Education, Inc.
Special Issues in Leadership Leadership Substitutes – Individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance Leadership Neutralizers – Various factors that neutralize leadership behaviors or render them ineffective The norms of strongly cohesive groups Elements of the job Organizational factors © 2009 Pearson Education, Inc.
TABLE 9.2 Leadership Substitutes and Neutralizers © 2009 Pearson Education, Inc.
The Changing Nature of Leadership Leader as Coach – From directive overseer to mentor Gender – Understanding the differences and dynamics in the approaches of women and men to leadership Cross-Cultural Leadership – The effects of an individuals native culture on his or her approach to leadership when functioning in another culture Collectivism versus individualism © 2009 Pearson Education, Inc.
Emerging Issues in Leadership Strategic Leadership – Leaders ability to understand the complexities of the organization and its environment and lead change so as to enhance organizational competitiveness Ethical Leadership – Leaders ability to maintain high ethical standards for personal conduct, unfailingly exhibit ethical behavior, and hold others to the same standards Virtual Leadership – Leading through effective communication and maintaining collaborative relationships at a distance © 2009 Pearson Education, Inc.
Leadership, Management, and Decision-Making Rational decision-making – Recognizing and defining the decision situation – Identifying alternatives – Evaluating alternatives – Selecting the best alternative – Implementing the chosen alternative – Following up and evaluating the results © 2009 Pearson Education, Inc.
FIGURE 9.2 Steps in the Rational Decision-Making Process © 2009 Pearson Education, Inc.
Behavioral Aspects of Decision-Making Political Forces in Decision-Making – Coalition: An informal alliance of individuals or groups formed to achieve a common goal Intuition – An innate belief about something, often without conscious consideration Escalation of Commitment – Staying with a chosen course of action, even when it appears to have been wrong Risk Propensity – The extent to which a decision-maker is willing to gamble when making a decision © 2009 Pearson Education, Inc.
Key Terms behavioral approach to leadership charismatic leadership coalition decision-making employee-focused leader behavior escalation of commitment ethical leadership intuition leadership leadership neutralizers leadership substitutes risk propensity situational approach to leadership strategic leadership task-focused leader behavior trait approach to leadership transactional leadership transformational leadership virtual leadership © 2009 Pearson Education, Inc.
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