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1 Chapter 14 Leadership Designed & Prepared by B-books, Ltd. MGMT Chuck Williams.

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1 1 Chapter 14 Leadership Designed & Prepared by B-books, Ltd. MGMT Chuck Williams

2 2 What Is Leadership? After reading these sections, you should be able to: 1.explain what leadership is. 2.describe who leaders are and what effective leaders do.

3 3 Leadership Differences between Leaders and Managers 1 1

4 4 Leaders versus Managers MANAGERS Do things right Status quo Short-term Means Builders Problem solving MANAGERS Do things right Status quo Short-term Means Builders Problem solving LEADERS Do the right thing Change Long-term Ends Architects Inspiring & motivating LEADERS Do the right thing Change Long-term Ends Architects Inspiring & motivating 1 1

5 5 Leaders versus Managers American organizations (and probably those in much of the rest of the industrialized world) are under led and over managed. They do not pay enough attention to doing the right thing, while they pay too much attention to doing things right. - Warren Bennis American organizations (and probably those in much of the rest of the industrialized world) are under led and over managed. They do not pay enough attention to doing the right thing, while they pay too much attention to doing things right. - Warren Bennis 1 1

6 6 Who Leaders Are and What Leaders Do Leadership Traits Leadership Traits Leadership Behavior Leadership Behavior 2 2

7 7 Leadership Traits 2 2 DriveStrong desire to leadHonestyIntegritySelf-confidenceEmotional stabilityCognitive AbilityKnowledge of Business Leaders differ from non-leaders:

8 8 Leadership Behaviors Initiating Structure The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. Consideration The extent to which a leader is friendly, approachable, and supportive and shows concern for employees. 2.2

9 9 Blake/Moulton Leadership Grid1,9 Country Club Management 9,9 Team Management 1,1 Impoverished Management 9,1 Authority- Compliance 5,5 Middle of the Road 5,5 123456789 1 2 3 4 5 6 7 8 9 Concern for People Concern for Production High Low High 2.2

10 10 Situational Approaches to Leadership After reading these sections, you should be able to: 3.explain Fiedler’s contingency theory. 4.describe how path-goal theory works. 5.explain the normative decision theory.

11 11 Putting Leaders in the Right Situation: Fiedler’s Contingency Theory Group Performance = Leadership Style Situational Favorableness Situational Favorableness 3 3

12 12 Putting Leaders in the Right Situation: Fiedler’s Contingency Theory Workgroups They Lead Perform Well Matching Leadership Styles to Situations 3 3 Degree to Which the Situation Permits the Leader to Influence Behavior of Group Members

13 13 Leadership Style: Least Preferred Coworker Leadership style is the way a leader generally behaves toward followers –seen as stable and difficult to change Style is measured by the Least Preferred Co-worker scale (LPC) –relationship-oriented –task-oriented 3.1

14 14 Leadership Style: Least Preferred Coworker Scale 3.1

15 15 Situational Favorableness The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. Three factors:  Leader-member relations  Task structure  Position power 3.2

16 16 Situational Favorableness 3.2

17 17 Matching Leadership Styles to Situations 3.3

18 18 Path-Goal Theory A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment. 4 4

19 19 Basic Assumptions of Path-Goal Theory Clarify paths to goals Clear paths to goals by solving problems and removing roadblocks Increase the number and kinds of rewards available for goal attainment Do things that satisfy followers today or will lead to future rewards or satisfaction Offer followers something unique and valuable beyond what they’re experiencing 4 4

20 20 Adapting Leader Behavior: Path-Goal Theory Leadership Styles Leadership Styles Subordinate and Environmental Contingencies Subordinate and Environmental Contingencies Outcomes 4 4

21 21 Leadership Styles Directive –clarifying expectations and guidelines Supportive –being friendly and approachable Participative –allowing input on decisions Achievement-Oriented –setting challenging goals 4.1

22 22 Subordinate and Environmental Contingencies Perceived ability Locus of control Experience Perceived ability Locus of control Experience SubordinateEnvironmental Task structure Formal authority system Primary work group 4.2

23 23 Path Goal Theory: When to Use Leadership Styles 4.2

24 24 Normative Decision Theory Decision Styles Decision Quality and Acceptance 5 5

25 25 Decision Styles Solve the problem yourself Solve the problem yourself Obtain information. Select a solution yourself. Obtain information. Select a solution yourself. Share problem, get ideas from individuals. Select a solution yourself. Share problem, get ideas from individuals. Select a solution yourself. AIAIICI Share problem with group, get ideas. Make decision, which may or may not reflect input. Share problem with group, get ideas. Make decision, which may or may not reflect input. Share problem with group. Together try to reach a solution. Leader acts as facilitator. Share problem with group. Together try to reach a solution. Leader acts as facilitator. CIIGII Leader solves the problem or makes the decision Leader accepts any decision supported by the entire group 5.1

26 26 Decision Quality and Acceptance Using the right amount of employee participation: –improves decision quality –improves acceptance Decision tree helps leader identify optimal level of participation 5.2

27 27 Strategic Leadership After reading this section, you should be able to: 6.explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership.

28 28 Visionary Leadership Charismatic Leadership Transformational Leadership 6 6

29 29 Charismatic Leadership Creates an exceptionally strong relationship between leader and follower Charismatic leaders: –articulate a clear vision based on values –model values consistent with vision –communicate high performance expectations –display confidence in followers’ abilities 6.1

30 30 Kinds of Charismatic Leaders Ethical Charismatics –provide developmental opportunities –are open to positive and negative feedback –recognize others’ contributions –share information –show concern for the interests of the group Unethical Charismatics –control and manipulate followers –do what is best for themselves –only want positive feedback –motivated by self-interest 6.1

31 31 Ethical and Unethical Charismatic Leaders Exercising Power Use power to serve others Creating the vision Ask followers to help develop the vision Communicating with followers Engage in two-way communication Accepting feedbackAre open to feedback Want followers to think and to question the status quo Stimulating followers Developing followersFocus on developing followers Living by moral standards Exhibit three virtues: courage, sense of fairness, integrity Charismatic Leader Behaviors Ethical Charismatics 6.1

32 32 Ethical and Unethical Charismatic Leaders Charismatic Leader Behaviors Unethical Charismatics Exercising Power Use power to dominate others Creating the vision Sole provider of vision Communicating with followers Engage in one-way communication, not open to input from others Accepting feedbackPrefer yes-men, punish candid feedback Don’t want followers to think, prefer uncritical acceptance of own ideas Stimulating followers Developing followersInsensitive to followers’ needs Living by moral standards Follow standards only if they satisfy immediate self interests 6.1

33 33 Transformational Leadership Generates awareness and acceptance of group’s purpose and mission Gets followers to accomplish more than they intended or thought possible 6.2

34 34 Components of Transformational Leadership 1.Charisma or idealized influence 2.Inspirational motivation 3.Intellectual stimulation 4.Individualized consideration 6.2


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