1. Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Zulema Seguel © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. CHAPTER 13 Leading in a Dynamic Environment

2. 236 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Learning Objectives slide 1 of 2 1.Define leadership and explain its significance to an organization. 2.Differentiate between the different leader- centered approaches to leadership. 3.Describe the various types of power leaders use. 4.Explain what is meant by self-leadership and why it is important to the organization. 5.Characterize how leadership substitutes work.

3. 336 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Learning Objectives slide 2 of 2 6.Identify and define the variables in the situational leadership model. 7.Clarify how empowerment can increase the power and autonomy of organizational members. 8.Explain transformational leadership. 9.Discuss the changing role of women as leaders.

4. 436 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. The Significance of Leadership Leadership is a social influence process. Leadership isn’t a position, title, or privilege, it is a responsibility and a process. Leadership is an observable, understandable, learnable set of skills and practices available to everyone, anywhere in the organization. Leadership is the indirect ability to influence people by inspiring them to pursue goals for the benefit of the organization.

5. 536 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Leadership involves: –Creating a vision of the future. –Devising strategy for achieve that vision. –Communicating the vision so that everyone understands and believes in it. Leadership and Vision

6. 636 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Leader-Centered Approaches Leader-centered approaches focus on traits, leader behaviors, and power. They include: –Trait focus –Behavior focus –Power focus

7. 736 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Trait Focus Approach The trait focus approach assumes that some people are endowed with certain characteristics making them effective leaders. –Physical characteristics (such as height and appearance) –Personality (such as self-esteem, dominance and emotional stability) –Aptitudes (general intelligence, verbal fluency and creativity)

8. 836 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Traits of Successful Leaders Drive –Achievement, sense of responsibility, ambition, energy, tenacity and initiative. Motivation –Especially power. Honesty and integrity Self confidence –Persuasive, diplomatic and socially skilled. Conceptual ability Business knowledge

9. 936 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Leader-centered approaches focus on traits, leader behaviors, and power. They include: –Trait focus –Behavior focus –Power focus Leader-Centered Approaches

10. 1036 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Behavior Focus Examines what effective leaders do rather than what effective leaders are. Behavioral models define a leader’s effectiveness based on two orientations: –Task orientation: Setting performance goals, planning and scheduling work, coordinating activities, giving directions, setting standards, providing resources, and supervising performance. –Relations orientation: Behavior that shows empathy for concerns and feelings, supportive of needs, showing trust, and similar attributes.

11. 1136 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Leadership Behaviors Effective leaders use a range of behaviors. These behaviors can be learned. An important characteristic of effective leaders is their ability change and adapt to organizational settings in which they manage.

12. 1236 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Leader-centered approaches focus on traits, leader behaviors, and power. They include: –Trait focus –Behavior focus –Power focus Leader-Centered Approaches

13. 1336 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Power Focus Power –The ability to use human, informational, or material resources to get something done. –The ability to get results. Authority –The officially sanctioned right to get something done.

14. 1436 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Two Categories of Power Position power –Power derived from the opportunities inherent in a person’s position in an organization. Personal power –Power derived from the interpersonal relationships between leaders and followers.

15. 1536 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Position Power Legitimate power –Stems from formal authority. Coercive power –The power to discipline, punish and withhold rewards. Reward power –Control over tangible benefits such as a promotion, a better job, a better work schedule, a larger operating budget, and increased expense account. Information power –Control over information.

16. 1636 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Personal Power Expert power –The power influence another person because of expert knowledge and competence. Referent power –The ability to influence others based on personal liking, charisma and reputation.

17. 1736 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Personalized Power Orientation –Associated with a strong need for esteem and status; power is often used impulsively. Socialized Power Orientation –The use of power for the benefit of others to make subordinates feel strong and responsible. Power Orientation

18. 1836 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Follower-Centered Approaches Leader-centered approaches are used to identify traits of behaviors leaders use to be effective but is focused only on the leader in isolation. –Self-leadership focus: Sometimes referred to as followership, is a paradigm founded on creating an organization of leaders who are ready to lead themselves. –Leadership substitutes: Variables such as individual, task and organizational characteristics.

19. 1936 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Characteristics of Self-Leaders slide 1 of 2 The capacity to motivate themselves and stay focused on tasks. Integrity that demands both loyalty to the organization and the willingness to act according to beliefs. Understanding of the organization and their contributions to it. Willingness to take the initiative to deal with problems.

20. 2036 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Characteristics of Self-Leaders slide 2 of 2 Versatility, skillfulness and flexibility to adapt to a changing environment. Responsibility for their careers, actions and development.

21. 2136 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Leadership Substitutes Variables such as individual, task, and organizational characteristics that tend to outweigh the leader’s ability to affect subordinate satisfaction and performance. These are known as neutralizers. –A neutralizers is a condition that counteracts leader behavior and/or prevents the leader from having an effect on a follower or a specific situation.

22. 2236 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Degree of formality Degree of flexibility Amount of cohesiveness Independence of reward structure Degree of spatial distance from manager Degree of intrinsic satisfaction Degree of repetitiveness Degree of structure or feedback Experience Training Ability Professional orientation Indifference to organizational rewards Organizational Characteristics Task Characteristics Individual Characteristics Leadership Substitutes

23. 2336 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Interactive Approaches Another method of examining leadership effectiveness is to look at how leaders interact with their followers. The three approaches covered: –Situational leadership model –Empowerment –Transformational leadership

24. 2436 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Situational Leadership Model slide 1 or 2 Examines the interaction between leadership behavior, the situation, and the follower’s readiness. –Readiness: The extent to which a subordinate possesses the ability and willingness to complete a specific task. –Task behavior: The extent to which a leader organizes and defines the role of followers by explaining what each person must do and when, where, and how tasks are to be accomplished.

25. 2536 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Situational Leadership Model slide 2 or 2 Four styles of leadership behavior: –Telling style: The leader provides specific instructions and closely supervises performance. –Selling style: The leader explains decisions and provides opportunities for clarification. –Participating style: The leader shares ideas and maintains two-way communication to encourage and support the skills subordinates have developed. –Delegating style: The leader provides subordinates with few task or relations behaviors.

26. 2636 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Empowerment The interaction of the leader giving away or sharing power with those who use it to become involved and committed to independent, high-quality performance. Successful empowerment means that everyone has been convinced that he or she makes a difference to the success of the organization.

27. 2736 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Transformational Leadership A leader’s ability to influence employees to achieve more than was originally expected, or thought possible. Transformational leaders are able to generate feelings of trust, admiration, loyalty and respect from followers. There are four primary dimensions: –Idealized influence –Inspirational motivation –Intellectual stimulation –Individualized considerations

28. 2836 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. DimensionLeader’s BehaviorFollower’s Behavior Individual Consideration Acts as mentor Is attentive to achievement and growth needs Is motivated Feels valued Intellectual Stimulation Promotes innovation and creativity Reframes problems Is encouraged to be novel and try new approaches Primary Dimensions of Transformational Leadership slide 1 of 2

29. 2936 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. DimensionLeader’s BehaviorFollower’s Behavior Inspirational Motivation Provides meaning and challenge through pro-social, collective action. Is motivated by team spirit Enthusiastic Optimistic Idealized Influence Shares risks Is considerate of others over own needs Is ethical and moral Shows admiration Respect Trust Primary Dimensions of Transformational Leadership slide 2 of 2

30. 3036 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. A New Model of Leadership The Three C’s Model –Competence –Character –Community

31. 3136 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Competence Leaders need to have knowledge about how organizations work. They need to know how to develop a vision and mission that not only is correct for the industry but one that also is inspiring to the people in the organization. They need to know how to analyze financial statements and how to make sure the organization does achieve its strategy. Leaders need to know how to interact with people. They need to know how to communicate well and understand what influences people.

32. 3236 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Character refers to the leadership values and behaviors that are essential for an organization to achieve its mission. –Trust –Commitment –Followership Character

33. 3336 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Community The result of competency and character will be a vibrant, healthy community within the organization The concept of community applied outside of the organization will build strong positive ties between the organization and its external community. –Customers –Employees –Overall healthy economic conditions

34. 3436 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Women as Leaders The number of women in leadership positions has increased steadily since 1970. Women are 51 percent of the population but occupy only slightly over 25 percent of the supervisory positions in U.S. industry. Women occupy just 11 percent of senior executive positions in Fortune 500 companies.

35. 3536 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Implications for Leaders: Leadership Effectiveness slide 1 of 2 Know yourself. Be a role model. Learn to communicate with your ears open and your mouth shut. Know your team and be a team player. Be honest with yourself as well as to others. Do not avoid risks. Believe in yourself. Take the offense rather than the defense.

36. 36 © Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved. Implications for Leaders: Leadership Effectiveness slide 2 of 2 Know the ways of disagreement and the means of compromise. Be a good follower.