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Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 Chapter 14 Prepared by Deborah Baker Texas Christian.

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Presentation on theme: "Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 Chapter 14 Prepared by Deborah Baker Texas Christian."— Presentation transcript:

1 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 Chapter 14 Prepared by Deborah Baker Texas Christian University Management 4th Edition Chuck Williams Leadership

2 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 2 What Would You Do?  The new CEO of Tyco is faced with $28 billion in debt, and the possibilities of bankruptcy  Dennis Kozlowski’s reign as CEO is still embarrassing, when he used funds as his personal piggy bank 43 rd Floor, Tyco Headquarters, New York City. How can you get people to see that with sound management, Tyco can be an exceptional company?

3 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 3 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.

4 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 4 Leadership Differences Between Leaders and Managers Substitutes for Leadership 1 1

5 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 5 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 Adapted from Exhibit

6 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 6 Leaders versus Managers 1.1 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

7 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 7 Doing the Right Thing 1.1 The Three M’s: Mission, Mentor, and Mirror  Business leaders can develop personal ethics by focusing on their mission, a mentor, and the mirror 1.Develop a personal mission statement. 2.Take care in choosing a mentor. 3.Stand in front of the mirror to assess your ethical performance as a business leader. The Three M’s: Mission, Mentor, and Mirror  Business leaders can develop personal ethics by focusing on their mission, a mentor, and the mirror 1.Develop a personal mission statement. 2.Take care in choosing a mentor. 3.Stand in front of the mirror to assess your ethical performance as a business leader.

8 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 8 Substitutes for Leadership  Leadership substitutes  subordinate, task, or organizational characteristics that make leaders redundant or unnecessary  Leadership neutralizers  subordinate, task, or organizational characteristics that interfere with a leader’s actions  Leaders don’t always matter  Poor leadership is not the cause of every organizational crisis 1.2

9 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 9 Leadership Substitutes and Neutralizers Adapted from Exhibit

10 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 10 Who Leaders Are and What Leaders Do Leadership Traits Leadership Traits Leadership Behavior Leadership Behavior 2 2

11 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 11 Leadership Traits Desire to Lead Honesty and Integrity Drive Self- Confidence Emotional Stability Cognitive Ability Knowledge of the Business 2.1 Adapted from Exhibit 14.3

12 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 12 What Really Works: Leadership Traits Intelligence 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success75% Dominance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success57% Extroversion 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success63% Traits and Perceptions of Leadership Effectiveness 2.1

13 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 13 What Really Works: Leadership Traits Charisma and Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success72% Charisma and Perceived Leadership Effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success89% Charisma and Leader Satisfaction 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success90% Charisma and Leadership Effectiveness 2.1

14 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 14 Leadership Behaviors 2.2 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.

15 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 15 Blake/Moulton Leadership Grid 1,9 Country Club Management 9,9 Team Management 1,1 Impoverished Management 9,1 Authority- Compliance 5,5 Middle of the Road 5, Adapted from Exhibit Concern for People Concern for Production High Low High

16 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 16 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. discuss Hersey and Blanchard’s Situational Leadership theory. 6. explain the normative decision theory.

17 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 17 Putting Leaders in the Right Situation: Fiedler’s Contingency Theory 3 3 Group Performance = Leadership Style Situational Favorableness Situational Favorableness

18 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 18 Putting Leaders in the Right Situation: Fiedler’s Contingency Theory Least Preferred Coworker Situational Favorableness Matching Leadership Styles to Situations 3 3

19 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 19 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

20 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 20 Leadership Style: Least Preferred Coworker Scale 3.1

21 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 21 Situational Favorableness 3.2 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

22 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 22 Situational Favorableness Exhibit

23 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 23 Matching Leadership Styles to Situations Exhibit

24 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 24 Path-Goal Theory 4 4 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.

25 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 25 Basic Assumptions of Path-Goal Theory Adapted From Figure 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

26 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 26 Path-Goal Theory Adapted From Figure Subordinate Contingencies Perceived Ability Locus of Control Experience Subordinate Contingencies Perceived Ability Locus of Control Experience Environmental Contingencies Task Structure Formal Authority System Primary Work Group Environmental Contingencies Task Structure Formal Authority System Primary Work Group Outcomes Subordinate satisfaction Subordinate performance Outcomes Subordinate satisfaction Subordinate performance Leadership Styles Directive Supportive Participative Achievement-Oriented Leadership Styles Directive Supportive Participative Achievement-Oriented 4 4

27 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 27 Adapting Leader Behavior: Path-Goal Theory Leadership Styles Leadership Styles Subordinate and Environmental Contingencies Subordinate and Environmental Contingencies Outcomes 4 4

28 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 28 Leadership Styles  Directive  clarifying expectations and guidelines  Supportive  being friendly and approachable  Participative  allowing input on decisions  Achievement-Oriented  setting challenging goals 4.1

29 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 29 Leadership Styles  Martin Winterkorn of Audi uses a directive style. His employees know exactly what is expected of them.

30 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 30 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

31 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 31 Path Goal Theory: When to Use Leadership Styles Adapted from Exhibit

32 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 32 Adapting Leadership Behavior Worker Readiness Leadership Styles Leadership Styles 5 5 Hersey and Blanchard’s Situational Leadership Theory

33 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 33 Worker Readiness  The ability and willingness to take responsibility for directing one’s behavior at work  Components of worker readiness:  Job readiness  Psychological readiness 5.1

34 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 34 Worker Readiness R4 R3 R2 R1 confident willing able confident willing able insecure not willing able insecure not willing able confident willing not able insecure not able not willing 5.1

35 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 35 Leadership Styles Telling (R1) Selling (R2) Participating (R3) Delegating (R4) high task behavior low relationship behavior high task behavior low relationship behavior high task behavior high relationship behavior high task behavior high relationship behavior low task behavior high relationship behavior low task behavior low relationship behavior 5.2

36 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 36 Normative Decision Theory Decision Styles Decision Quality and Acceptance 6 6

37 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 37 Decision Styles Adapted from Exhibit 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 tries to reach a solution. Leader acts as facilitator. Share problem with group. Together tries 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

38 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 38 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 6.2

39 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 39  Quality Rule  If the quality of the decision is important, then don't use an autocratic decision style  Leader Information Rule  If the quality of the decision is important, and if the leader doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style  Subordinate Information Rule  If the quality of the decision is important, and if the subordinates don't have enough information to make the decision themselves, then don't use a group decision style 6.2 Normative Theory Decision Rules to Increase Decision Quality

40 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 40 Normative Theory Decision Rules to Increase Decision Quality  Goal Congruence Rule  If the quality of the decision is important, and subordinates' goals are different from the organization's goals, then don't use a group decision style  Problem Structure Rule  If the quality of the decision is important, the leader doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style 6.2

41 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 41 Normative Theory Decision Rules to Increase Decision Acceptance  Commitment Probability Rule  If having subordinates accept and commit to the decision is important, then don't use an autocratic decision style  Subordinate Conflict Rule  If having subordinates accept the decision is important and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style  Commitment Requirement Rule  If having subordinates accept the decision is absolutely required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style 6.2

42 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 42 Strategic Leadership After reading this section, you should be able to: 7. explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership.

43 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 43 Visionary Leadership Charismatic Leadership Transformational Leadership 7 7

44 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 44 Charismatic Leadership  Creates an exceptionally strong relationship between leader and follower  Charismatic leaders:  articulate a clear vision, based on values  model values consistently with vision  communicate high performance expectations  display confidence in followers’ abilities 7.1

45 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 45 Kinds of Charismatic Leaders  Ethical Charismatics  provide developmental opportunities  open to positive and negative feedback  recognize others’ contributions  share information  concerned with 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 7.1

46 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 46 Ethical and Unethical Charismatic Leaders Exercising Power Power is used to serve others Creating the vision Followers help develop the vision Communicating with followers Two-way communication Accepting feedbackOpen to feedback Want followers to think and to questions the status quo Stimulating followers Developing followersFocus on developing followers Living by moral standards Three virtues: courage, sense of fairness, integrity Charismatic Leader Behaviors Ethical Charismatics 7.1 Adapted from Exhibit 14.15

47 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 47 Ethical and Unethical Charismatic Leaders Charismatic Leader Behaviors Unethical Charismatics Exercising Power Power is used to dominate others Creating the vision Vision comes solely from the leader Communicating with followers 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 7.1 Adapted from Exhibit 14.15

48 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 48 Reducing Risks of Unethical Charismatics 1. Have a clearly written code of conduct 2. Recruit, select, and promote managers with high ethical standards 3. Train leaders how to value, seek, and used diverse points of view 4. Celebrate and reward those who exhibit ethical behaviors 7.1

49 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 49 Transformational Leadership  Generates awareness and acceptance of group’s purpose and mission  Gets followers to accomplish more than they intended or thought possible 7.2

50 Chapter 14 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 50 Components of Transformational Leadership 1. Charisma or idealized influence 2. Inspirational motivation 3. Intellectual stimulation 4. Individualized consideration 7.2


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