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Chapter Seven Other Leadership Perspectives: Upper Echelon and Leadership of Nonprofits.

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Presentation on theme: "Chapter Seven Other Leadership Perspectives: Upper Echelon and Leadership of Nonprofits."— Presentation transcript:

1 Chapter Seven Other Leadership Perspectives: Upper Echelon and Leadership of Nonprofits

2 Factors that Differentiate Micro and Macro Leadership
Who the leader is Scope of responsibility Focus Effectiveness criteria

3 The Domain of Strategic Leaders
Structure Technology Leadership Strategy Strategic Leaders Culture Environment

4 Dual Role of Strategic Leaders
Moderating Factors Strategy Formulation Strategy Implementation Leader PERFORMANCE

5 Moderators of Executive Discretion
External Factors Uncertainty Type of industry Market growth Legal constraints Internal Factors Stability Size and structure Culture Stage of organizational development TMT and BOD

6 Strategic Leadership Types
High challenge- seeking Low challenge- CHALLENGE- SEEKING HIGH-CONTROL INNOVATOR (HCI) Challenge-seeker who maintains tight control over organization PARTICIPATIVE INNOVATOR (PI) Challenge-seeker who delegates control of organization STATUS QUO GUARDIAN (SQG) Challenge-averse who maintains tight control over organization PROCESS MANAGER (PM) Challenge-averse who delegates control of organization NEED FOR CONTROL High control Low control

7 How Executives Affect their Organizations
Environment Strategy Direct Decisions Allocation of resources Reward system Selection of other leaders Promotions Role modeling Culture Leader Structure Technology Leadership

8 Direct Decisions Vision Mission Strategy Structure
Organizational culture - ? Selection of other leaders

9 Allocation of Resources and Reward System
Decisions regarding funding and budgets; Allocation of resources to support goals Formal rewards such as salary and bonuses Informal rewards such as recognition Promotion of other leaders and managers

10 Setting the Norm and Role Modeling
Setting decision criteria and rules by which others make decisions Active or subtle role modeling of behaviors and styles

11 Factors that Affect Executives’ Salaries
Firm size Industry competition CEO power and discretion Internationalization High stress and instability

12 Characteristics of Nonprofits
Operate without profit Funds reinvested inside the organization Public service mission Voluntary board of directors Funded through contributions

13 Leadership Challenges in Nonprofits
Leaders must rely on participatory leadership to build consensus Strong ethical requirements Motivating and retaining employees Finding and training future leaders


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