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Chapter One The Nature and Importance of Leadership.

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2 Chapter One The Nature and Importance of Leadership

3 The Meaning of Leadership Leadership is the ability to inspire confidence and support among the people who are needed to achieve organizational goals


5 Leadership Defined Interpersonal influence directed through communication toward goal attainment An act that causes others to act or respond in a shared direction The principle dynamic force that motivates and coordinates the organization in the accomplishment of its objectives A willingness to take blame (as defined by legendary football quarterback Joe Montana)

6 Leadership as a Partnership Leadership is regarded as a long-term relationship, or partnership, where the leader and the group members are connected in such a way that the power between them is balanced

7 Four Things Are Needed Exchange of purpose A right to say no Joint accountability Absolute honesty

8 Management Management is more formal and scientific than leadership Management relies on universal skills Management is a set of explicit tools and techniques Management is based on reasoning and testing Management involves the functional or administrative aspects of planning, organizing, directing, and controlling

9 Leadership Leadership deals with the interpersonal aspects of a manager’s job Leadership involves having a vision of what an organization can become Leadership requires eliciting cooperation and teamwork Leadership produces change, often to a dramatic degree A leader creates a vision to direct the organization

10 Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Independent Shares Knowledge Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberative Authoritative Stabilizing Centralizes knowledge LeaderManager

11 Leadership Matters The results of one study showed –transactional leadership was not significantly related to performance –charismatic leadership was slightly, positively related to performance –in an uncertain environment, charismatic leadership was more strongly related to performance


13 The Impact of Leadership Leadership does make a difference –Research from Michael Maccoby –Southwest Airlines –Studies of senior managers –Attribution theory – the process of attributing causality to events

14 The Impact of Leadership Formal leadership does not make a difference –Leadership has a smaller impact on outcomes than do forces in the situation –There are three major arguments against the importance of leadership substitutes for leadership leadership irrelevance complexity theory

15 Closely knit teams of highly trained individuals Intrinsic satisfaction Computer technology Professional norms Closely knit teams of highly trained individuals Intrinsic satisfaction Computer technology Professional norms Substitutes for leadership and leadership function Substitutes for leadership and leadership function Substitutes for Leadership

16 Leader Irrelevance Factors outside the leader’s control have a larger impact on business than do leadership actions Leaders have unilateral control over a only a few resources Firms choose leaders whose values are compatible with those of the firm

17 Complexity Theory Holds that organizations are complex systems that cannot be explained by the usual rules of nature Leaders and managers can do little to change the course of the system Managers cannot predict which business strategies or product mixes will survive Managers can only scramble or innovate in order to adapt to outside forces

18 Leadership Roles Research has identified nine roles that can be classified as part of the leadership function of management: FigureheadTeam Builder SpokespersonTeam Player NegotiatorCoach EntrepreneurStrategic Planner Technical Problem Solver

19 Satisfactions of Leaders A feeling of power and prestige A chance to help others grow and develop High income Respect and status A feeling of “being in on” things An opportunity to control money and other resources

20 Dissatisfactions and Frustrations of Leaders Too much uncompensated overtime Too many “headaches” Not enough authority Loneliness Too many problems involving people Too much organizational politics The pursuit of conflicting goals

21 A Framework for Understanding Leadership The leadership framework can be expressed in terms of a simple formula: L = f (l, gm, s) The formula shows that the leadership process is a function of the leader, group members, and other situational variables

22 SOURCE: Managing Today! by Stephen P. Robbins, © 1997 Reprinted by permission of Prentice-Hall, Inc., Upper Saddle River, N.J.

23 Leadership Effectiveness Leadership effectiveness refers to attaining desirable outcomes such as productivity, quality, and satisfaction in a given situation Whether or not the leader is effective depends on four sets of variables

24 Skill Development in Leadership Leadership skills are in high demand Leadership skills are listed as the top attributes executives are seeking in candidates for management jobs Developing leadership skills is more complex than developing structured skills and can be acquired, using a general learning model

25 Essential Qualities of Effective Followers Self-management Commitment Competence and focus Courage

26 Chapter Two Traits, Motives, and Characteristics of Leaders

27 Certain leadership traits are universally important; that is, they apply in all situations Universal Theory of Leadership


29 Leadership Characteristics Categories Personality traits Motives Cognitive factors

30 Personality Traits of Effective Leaders General personality traits Task-related personality traits

31 Strengths and Limitations of the Trait Approach STRENGHTS Leaders possess personal characteristics that differ from non leaders. Concentrate on selecting leaders with certain characteristics. LIMITATIONS Does not tell us which traits are needed in which situation. Do not know how much of a trait is the right amount.

32 General personality traits

33 General Personality Traits of Effective Leaders

34 Task-Related personality traits

35 Emotional Intelligence … refers to the ability to do such things as understand one’s feelings, have empathy for others, and regulate one’s emotions to enhance one’s quality of life.


37 Leadership Motives

38 Cognitive Factors and Leadership

39 The WICS Model of Leadership in Organizations This model of leadership encompasses and synthesizes –wisdom –intelligence, and –creativity to explain leadership effectiveness

40 The Influence of Heredity and Environment on Leadership Does heredity or environment contribute more to leadership effectiveness? Are leaders born or made? Do you have to have the right stuff to be a leader?

41 Nature versus Nurture Are leaders born or are they made? Both. Individuals inherit a basic capacity to develop personality traits and mental ability that sets an outer limit on how extensively these traits can be developed Environmental influences, in turn, determine how much of an individual’s potential will be developed

42 Summary The universal theory of leadership asserts that certain personality traits, leader motives, and cognitive factors contribute to leadership effectiveness Personality traits include both general traits and task-related traits Leaders can often be distinguished by their needs or motives

43 Summary (cont’d) Mental ability is important for leadership success Traits, motives, and characteristics required for leadership are a combination of heredity and environment Traits do appear to distinguish leaders from nonleaders and effective leaders from less- effective leaders

44 Chapter Three Charismatic and Transformational Leadership

45 Charisma Defined Charisma has been defined various ways Charisma is a Greek word meaning “divinely inspired gift” In leadership, charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others


47 Charisma: A Relationship Between the Leader and Group Members Key to charismatic leadership is the interaction between leader and group members Charismatic qualities must be attributed to the leader by group members Charismatic leaders use impression management to cultivate their relationships with group members

48 The Effects of Charisma Group members –trust the leader’s beliefs –have beliefs similar to those of the leader –accept the leader unquestioningly –have affection for the leader –willingly obey the leader –identify with and attempt to emulate the leader

49 The Effects of Charisma (cont’d) Group members –have emotional involvement in the mission –have heightened goals –feel that they will be able to accomplish, or to contribute to the accomplishment of the mission

50 Halpert’s Dimensions of Charisma

51 Types of Charismatic Leaders (cont’d) Office-holder charismatics attain their charisma from the position they hold Personal charismatics gain esteem from others’ faith in them as people Divine charismatics are endowed with a gift of divine grace

52 Characteristics of Charismatic Leaders Visionary Masterful communication skills Ability to inspire trust Able to make group members feel capable Energy and action orientation Emotional expressiveness and warmth Romanticize risk Unconventional strategies Self-promoting personality Dramatic and unique

53 Vision in Charismatic Leadership Vision is the ability to imagine different and better conditions and ways to achieve them A vision is a lofty, long-term goal Charismatic leaders inspire others with their vision

54 Communication Management by Inspiration –Using metaphors and analogies to appeal to the intellect, imagination, and values of group members –Gearing language to different audiences Management by Anecdote –Inspiring and instructing team members by telling fascinating stories

55 Techniques for Developing Charisma Create visions for others Be enthusiastic, optimistic, and energetic Be sensibly persistent Remember names of people Make an impressive appearance Be candid Display an in-your-face attitude

56 The Development of Charisma Developing some of the traits, characteristics, and behaviors of charismatic people, a person can increase his or her charisma, such as: Create visions for others Be enthusiastic Being persistent Remember names of people

57 Development of Charisma Make an Impressive Appearance Being candid Display an In-Your-Face Attitude

58 Transformational Leadership Investing managers with a sense of urgency Committing to greatness Adopting a long-range perspective and concurrently observing organizational issues from a broad rather than a narrow perspective.

59 How Transformations Take Place

60 Attributes of Transformational Leaders Charismatic Create a vision Encourage the personal development of their staff Provide supportive leadership Practice empowerment Innovative thinking Lead by example

61 Four qualities of a Transformational Leader Charismatic Inspirational leadership Intellectual stimulation Individualized consideration

62 Transformational Leadership The transformational leader helps bring about major, positive changes Transformational leaders move group members beyond their self-interests for the good of the group, organization, or society

63 Charismatic and Transformational Leadership Achieve a comprehensive understanding of the meaning and types of charismatic leaders. Describe many of the traits and behaviors of charismatic leaders. Explain the communication style of charismatic leaders.

64 Concerns About Charismatic Leadership According to the concept of leadership polarity, leaders are often either revered or vastly unpopular Charisma may not be necessary for leadership effectiveness Charismatic leadership has a dark side Some charismatic and transformational leaders neglect their social responsibility

65 Summary Charisma is a special quality of some leaders that differentiates them from others Charismatic leaders often contribute to group members’ attributions of their charismatic qualities through impression management The effects of charismatic leadership can be organized into three dimensions: referent power, expert power, and job involvement

66 Summary (cont’d) There are five types of charismatic leaders: socialized, personalized, office-holder, personal, and divine Charismatic and transformational leaders are able to articulate a vision in such a way as to inspire others Charisma can be developed There may be a dark side to charismatic leadership

67 Chapter Four Leadership Behaviors, Attitudes, and Styles

68 Ohio State University Studies  Edwin A. Fleishman  Leader Behavior Description Questionnaire  Identified Two dimensions  Initiating Structure  Consideration

69 Consideration  Consideration is the degree to which the leader creates an environment of emotional support, warmth, friendliness, and trust.

70 Consideration  The leader creates an environment by:  Being friendly and approachable  Looking out for the personal welfare of the group  Keeping the group abreast of new developments  Doing small favors for the group

71 Consideration  Leaders who score high on the consideration factor are friendly, trustful, earn respect, and have a warm relationship with team members.  Leaders with low scores on the consideration factor typically are authoritarian and impersonal in their relationships with group members.

72 Consideration  Five questionnaire items measuring the consideration factor are as follows:  Do personal favors for people in the work group.  Treat all people in the work group as your equal.  Be willing to make changes.  Back up what people under you do.  Do little things to make it pleasant to be a member of the staff.

73 Initiating Structure & Consideration  An important output of research on initiating structure and consideration is to categorize leaders with respect to how much emphasis they place on the two dimensions.  The two dimensions are not mutually exclusive.  A leader can achieve high or low status on both dimensions.

74 Initiating Structure  Initiating structure is the degree to which the leader organizes and defines relationships in the group.  Activities include assigning specific tasks, specifying procedures to be followed, scheduling work, and clarifying expectations of team members.

75 Initiating Structure  Self-assessment items measuring initiating structure are as follows:  Try out your own new ideas in the work group.  Encourage the slow-working people in the group to work harder.  Emphasize meeting deadlines.  Meet with the group at regularly scheduled times.  See to it that people in the work group are working up to capacity.

76 Initiating Structure  Leaders who score high on the initiating structure dimension:  Define the relationship between themselves and their staff members.  Define the role that they expect each staff member to assume.  Such leaders also endeavor to establish well-defined channels of communication and ways of getting the job done.

77 Initiating Structure & Consideration

78 6 High Low High Low High Low Structure High Consideration High Structure High Consideration High Structure Low Consideration Low Structure Low Consideration

79 University of Michigan Studies  Rensis Likert  Contrasted High & Low Producing Units  Two Key Approaches  Production Centered Leaders  Employee Centered Leaders

80 Production Centered Leaders  Production-centered leaders set tight work standards, organized tasks carefully, and prescribed the work methods to be followed.  They also closely supervised the work of group members.

81 Employee Centered Leaders  Employee-centered leaders encouraged subordinate participation in goal setting and in other work decisions.  They also helped to ensure high performance by engendering trust and mutual respect.

82 Task-Related Attitudes & Behaviors  Adaptability reflects a contingency viewpoint.  A tactic is chosen based on the unique circumstances at hand.  A leader who was responsible for psychologically immature group members would find it necessary to supervise them closely.  If the group members were mature and self-reliant, they would require less supervision.  Adaptability is a leadership behavior that includes attention to both task and interpersonal factors.

83 Task-Related Attitudes & Behaviors  Since the function of leadership is to produce change, the leader must set the direction of that change.  Setting the direction goes beyond planning, which is a management process designed to produce orderly results rather than change.  Direction setting is part of creating a vision and strategy.  The strategy describes a feasible way of achieving the vision.

84 Task-Related Attitudes & Behaviors  Effective leaders consistently hold group members to high standards of performance.  Setting such standards increases productivity.  People tend to live up to the expectations set for them by superiors.  This is called the Pygmalion effect, and it works in a subtle, almost unconscious way  When a managerial leader believes that a group member will succeed, the manager communicates this belief without realizing it.  Conversely, when a leader expects a group member to fail, that person will not disappoint the manager.

85 … is one who helps group members attain productivity, including high quality and customer satisfaction. An Effective Leader


87 Task-Related Attitudes & Behaviors  Combined with risk taking, a bias for action is also an important leadership behavior.  To bring about constructive change, the leader must take risks and be willing to implement these risky decisions.

88 Task-Related Attitudes & Behaviors  The leader who provides hands-on guidance helps the group accomplish important tasks and, at the same time, group members learn important skills.  Too much guidance of this nature, however, can be a symptom of poor delegation and micromanagement.

89 Task-Related Attitudes & Behaviors  Giving group members frequent feedback on their performance is another vital leadership behavior.  The leader can rarely influence the actions of group members without appropriate performance feedback.  Feedback of this nature has two aspects.  Group members are informed how well they are doing so that they can take corrective action if needed.  Positive feedback serves as a reinforcer that prompts group members to continue favorable activities.

90 Task-Related Attitudes & Behaviors  Stability of Performance: Effective leaders are steady performers, even under heavy workloads and uncertain conditions.  Remaining steady under conditions of uncertainty contributes to effectiveness because it helps team members cope with the situation.  When the leader remains calm, group members are reassured.  Stability is helpful because it helps the managerial leader appear professional and cool under pressure.

91 Task-Related Attitudes & Behaviors  A tough question is one that makes a person or group stop and think about why they are doing or not doing something.  Group members are forced to think about the effectiveness of their activities.  The beauty of a tough question is that it encourages people to ask themselves, “Why didn't I think of that? It seems so obvious.”

92 Task-Related Attitudes & Behaviors  A strong customer orientation is natural in a consumer products business but can be equally important for an industrial company.  Effective leaders are strongly interested in satisfying the needs of customers, clients, or constituents.  This approach helps inspire employees to satisfy customers.

93 Relationship-Oriented Attitudes & Behaviors  Alignment and Mobilization of People  Getting people pulling in the same direction and working together smoothly is more of a communications challenge than a problem of organization design.  To get people pulling together, it is necessary to talk to more people than would be required in organizing.  Alignment enables people to have a clear sense of direction because they are pursuing a vision.

94 Relationship-Oriented Attitudes & Behaviors  A new concept of the leader's role, concert building, involves both aligning and mobilizing.  The concert builder functions as an orchestra leader. His or her goal is to produce a system that is self-evaluating, self-correcting, self-renewing, and ongoing.  The system can be thought of as a large modern orchestra.  Professionals play quite different instruments and perform separate, and often very difficult, tasks.  The work of each must be integrated with the work of others to make up the whole.

95 Relationship-Oriented Attitudes & Behaviors  Inspiration  Based on surveys and focus groups, the Forum Group has identified five inspiring practices:  Promoting the development of people's talents  Recognizing the contribution of others  Enabling others to feel like leaders  Stimulating others' thinking  Building enthusiasm about projects and assignments  Being inspired is an emotional process that is triggered by a variety of behaviors on the part of a leader.

96 Relationship-Oriented Attitudes & Behaviors  Satisfaction of Human Needs  To inspire people, effective leaders motivate people by satisfying higher-level needs.  Motivation and inspiration energize people by satisfying needs for achievement, a sense of belonging, recognition, self-esteem, and a feeling of control over one's life.  A strictly managerial rather than leadership- approach would be to push people in the right direction through control mechanisms.  An example would be suspending people who did not achieve work quotas.

97 Relationship-Oriented Attitudes & Behaviors  A major approach to making meaningful work for people is to formulate the right vision and strategy.  Formulating a vision and strategy helps involve group members in goal accomplishment.  Employees can also find meaning in their work if the leader employs a basic tactic such as explaining how a particular job helps the company or society.

98 Relationship-Oriented Attitudes & Behaviors  Emotional Support & Encouragement  Supportive behavior toward team members usually increases leadership effectiveness.  A supportive leader gives frequent encouragement and praise.  One of the many work-related ways of encouraging people is to allow them to participate in decision making.  Emotional support generally improves morale and sometimes improves productivity.

99 Relationship-Oriented Attitudes & Behaviors  Leader's help promote values and principles that contribute to the welfare of individuals and organizations.  These deal directly with the emotions and attitudes of people, and indirectly with the task.  Steven Covey, who is widely quoted for his uplifting messages, advises that an organization's mission statement must be for all good causes.  Leaders who believe in these good causes will then espouse principles and values that lead people toward good deeds in the workplace.

100 Relationship-Oriented Attitudes & Behaviors  A servant leader serves constituents by working on their behalf to help them achieve their goals, not the leader's own goals.  The idea behind servant leadership, as formulated by Robert K. Greenleaf, is that leadership derives naturally from a commitment to service.  Serving others, including employees, customers, and community, is the primary motivation for the servant leader.

101 Relationship-Oriented Attitudes & Behaviors  A servant leader is a moral leader.  Place service before self-interest.  Listen first to express confidence in others.  Inspire trust by being trustworthy.  Focus on what is feasible to accomplish.  Lend a hand.

102 360-Degree Feedback  In 360-degree feedback, a formal evaluation of superiors is based on input from people who work for and with them.  Three hundred and sixty-degree feedback is also referred to as multisource feedback or multirater feedback.  Three hundred and sixty-degree feedback is more frequently used for leadership and management development than for performance evaluation.

103 360-Degree Feedback

104 Leadership Style The relatively consistent pattern of behavior that characterizes a leader Often based on the dimensions of initiating structure and consideration Examples: “He’s a real command-and- control type,” “she’s a consensus leader.”

105 Participative Leadership Participative leaders share decision making with group members (“trickle-up leadership”) Three subtypes: –Consultative leaders confer with group members –Consensus leaders strive for consensus among group members –Democratic leaders confer final authority to the group

106 Leadership Grid Styles The Leadership Grid is a framework for specifying the extent of a leader’s concern for production and people Benchmark Leadership Grid styles include: –Authority-Compliance (9,1) –Country Club Management (1,9) –Impoverished Management (1,1) –Middle-of-the-Road Management (5,5) –Team Management (9,9)

107 9,9 pattern Team management- the ideal style 1,9 pattern “Country club” environment Concern for People Concern for Production (low) (high) The Managerial Grid 1,1 pattern impoverished management 9,1 pattern Task management 5,5 pattern Middle-of-the-road management

108 Entrepreneurial Leadership Characteristics Strong achievement drive and sensible risk- taking High degrees of enthusiasm and creativity Tendency to act quickly when opportunity arises Constant hurry combined with impatience Visionary perspective

109 Entrepreneurial Leadership Characteristics (cont’d) Dislike of hierarchy and bureaucracy Preference for dealing with external customers Eye on the future

110 Gender Differences in Leadership Style One researcher concluded that men tended toward a command-and-control style. In contrast, women tended toward a transformational style, relying heavily on interpersonal skills. While researchers found leadership style differences between men and women, on the dimension of overall effectiveness, the sexes were perceived the same.

111 Chapter Five Contingency and Situational Leadership

112 Leaders are most effective when they make their behavior contingent on situational forces, including group member characteristics. Contingency Approach


114 Fiedler’s Contingency Theory The best style of leadership is determined by situational factors Leadership style may be relationship- motivated or task-motivated Leadership style is relatively enduring and difficult to change Leaders should be matched to situations according to their style

115 Figure 5-1 Summary of Findings From Fiedler’s Contingency Theory

116 Fiedler's Contingency Theory of Leadership Effectiveness This model holds that the best style of leadership is determined by the situation in which the leader is working. Classifies a manager's leadership style as relationship-motivated, task-motivated, or intermediate style (semi-independent). Once leaders understand their particular leadership style, they should work in situations that match their style.

117 Measuring Leadership Style: The Least Preferred Coworker Scale LPC scale measures the degree to which a leader describes favorably or unfavorably their least preferred coworker (could work the least well with). Self Assessment Quiz 5-1

118 Measuring Leadership Situation Theory classifies situations as high, moderate and low control. More control exercised by the leader, the more favorable the situation is for them. Control Classifications: –Leader-member relations –Task Structure –Position Power


120 The Leader-Match Concept and Overall Findings The effectiveness of leadership depends on matching leaders to situations in which they can exercise more control. Task-motivated leaders: perform best in situations of high and low control. These leaders perform best in situations highly favorable for exercising control since they can work on relationships and not the task.

121 The Leader-Match Concept and Overall Findings Relationship-motivated: perform best in situations of moderate control. They can work well on relationships and not get involved in overmanaging. **Participative Leaders are needed in the presence of a situation with an unclear task, or dealing with unmotivated or an uncooperative group.

122 Making the Situation More Favorable for the Leader Implication of theory is that the leader should modify situations to best match their leadership style; increasing their chances of being effective.

123 Path Goal Theory of Leadership Effectiveness Developed by House, Robert: specifies what the leader must do to achieve high productivity and morals in a given situation. A leader attempts to clarify the path to a goal for a group member so that they receive personal payoffs. Job satisfaction and performance increase.

124 Path Goal Theory of Leadership Leadership Style Directive Supportive Participative Achievement Oriented Characteristics of Group Member Outcomes Productivity Morale Demands of the Task (Contingency Factors)

125 Matching the Leadership Style to the Situation Leader chooses among four different leadership styles to achieve optimum results in a given situation. Two sets of contingency factors: types of subordinates and type of work they perform. Leadership Style Directive Supportive Participative Achievement Oriented Environmental Factors: factors that are not within the control of group members but that influence satisfaction and task accomplishment.

126 How The Leader Influences Performance Recognize or activate group members needs over which the leader has control. Increase personal payoffs to team members for attaining work goals. Make the path to rewards easier by coaching and providing direction. Help group members clarify expectations of how effort will lead to good performance and how performance leads to rewards.

127 How The Leader Influences Performance Continued Reduce frustrating barriers to reaching goals. Increase opportunity for personal satisfaction if group member performs effectively. Don’t irritate people by instructing them on things they know. Provide structure if missing and supply rewards contingent on adequate performance.

128 The Hersey-Blanchard Situational Leadership Model The situational leadership model of Paul Hersey and Kenneth H. Blanchard explains how to match the leadership style to the readiness of the group members. Leadership style classified according to amount task and relationship behavior the leader engages in.

129 Situational Leadership II (SLII) Developed by Kenneth H. Blanchard and others Explains how to match leadership style to the capabilities of group members on a given task SLII is designed to increase the frequency and quality of conversations about performance and professional development between managers and group members so that competence is developed, commitment takes place, and turnover among talented workers is reduced

130 Basics Of The Model Task behavior is the extent in which the leader spells out the duties and responsibilities of an individual or group; includes giving directions and setting goals. Relationship behavior is the extent to which the leader engages in two-way or multiway communication.

131 Style 1 High task and low relationship –The "telling" style is very directive because the leader produces a lot of input but a minimum amount of relationship behavior. –An autocratic leader would fit here.

132 Style 2- High Task and High Relationship The "selling" style is very directive, but in a more persuasive, guiding manner. The leader provides considerable input about task accomplishment but also emphasizes human relations.

133 Style 3- High Relationship and Low Task In the "participating" leadership style, there is less direction and more collaboration between leader and group members. The consultative and consensus subtypes of participative leader generally fit into this quadrant.

134 Style 4- Low Relationship, Low Task In the "delegating" leadership style, the leader delegates responsibility for a task to a group member and is simply kept informed of progress. If carried to an extreme, this style would be classified as free-rein.

135 Hersey and Blanchard’s Situational Leadership Theory Follower readiness: ability and willingness Leader: decreasing need for support and supervision

136 Prentice Hall, 2001Chapter Situational Leadership Theory Able and WillingLet Followers Perform Able and Unwilling Support & Participation Unable and Willing High Task Orientation Unable and UnwillingClear, Specific Directions Readiness of Followers Behavior of Leaders

137 High Relationship Behavior (amount of support required ) ) Task Behavior (amount of guidance required) Low (able to do job ) High (unable to do job) Participating Supporting Able/Unwilling Selling Coaching Unable/Willing Delegating Able/Willing Telling Directing Unable/Unwilling Low

138 Low Task Behavior High S3 Share Ideas and Facilitate in Decision Making: Participating High Relationship, Low Task S2 Explain decisions and provide opportunity for clarification: Selling High Relationship, High Task Low Relationship,Low Task Turn over responsibility for decisions and implementation: Delegating S4 Low Relationship, High Task Provide specific instructions and closely supervise performance: Telling S1 High Relationship Behavior

139 Follower Readiness HighModerateLow R4 Able and Willing R3 Able but unwilling R2 Unable but willing R1 Unable and unwilling Follower DirectedLeader Directed

140 Low Task Behavior High R3 Relationship-Low Task: Able but Unwilling High Relationship, Low task R2 Relationship- Selling: Unable but Willing High Relationship, High Task Low Relationship,Low Task R4 Delegating Able and Willing Low Relationship, High Task R1 Directive-autocratic: Unable and Unwilling High Relationship Behavior Leadership Guidelines

141 Evaluation of Situational Model Builds on other explanations of leadership that emphasize the role of task and relationship behaviors. Utilizes common sense and is intuitively appealing. In reality, leadership situations are less clear than 4 quadrants. Research evidence is mixed; model may hold for only certain types of employees.

142 Normative Decision Model Published by Vroom, Yetton, and Jago in 1973 and Views leadership as a decision making process and specifies type of leadership for a given situation.

143 Normative Decision Model Proper decision making style is determined using a decision tree analysis. Styles determined from analysis are: Autocratic I,II (decision by leader alone or with some info from group) Consultative I,II (decision by leader with input from one member or all members) Group II (group makes decision)

144 Normative Decision Model Decision tree nodes prompt the following questions, in the order given: Is it an important decision (quality)? Is group commitment important? Do I have enough information? Is the problem structured (well-defined)? Can I make the decision alone and get ‘buy-in”? Does the group share same goals (goal congruence? Is group member conflict an issue? Does the group have enough info to make a decision?

145 Cognitive Resource Model Published in 1987 by Fred Fiedler and Joseph Garcia. Theory relating stress and leader’s intelligence/experience.

146 Cognitive Resource Model Leader experience more important in high stress situation. Low-stress situation: intelligence and innovation are more valuable trait in leaders. Intellectual leaders more effective if directive. And the obvious: Complex problems best suited for intellectual leaders.

147 Research: How Top Level Executives Lead Farkas, Backer, and Wetlaufer published in Interviewed 163 top executives worldwide; 12,000 pgs. of interviews.

148 Research: How Top Level Executives Lead Conclusion: CEO’s usually utilize all approaches, however usually have one dominant approach. Situation determines best approach.

149 Crisis Leadership Attributes Be decisive Lead with compassion Reestablish the usual work routine Avoid a circle-the-wagons mentality Display optimism Be a transformational leader

150 Summary Hersey-Blanchard: Practical in that group members are ‘diagnosed’ prior to choosing best style. Relatively easy concepts to interpret and use (leader behavior and follower readiness). Best choice of five!

151 Chapter Six Leadership Ethics and Social Responsibility

152 Ethics and Morals Ethics is the study of moral obligations, or of separating right from wrong Ethics can also mean the accepted guidelines of behavior for groups or institutions Morals are an individual’s determination of what is right or wrong and are influenced by an individual’s values

153 Ethical Leadership Behaviors 1.Be honest and trustworthy and have integrity in dealing with others 2.Pay attention to all stakeholders 3.Build community 4.Respect the individual 5.Accomplish silent victories


155 Factors Contributing to Ethical Differences Leader’s level of greed, gluttony, and avarice Leader’s level of moral development –Preconventional level –Conventional level –Postconventional level Sense of entitlement Situation Character

156 Evaluating Ethics of a Decision Guidelines Is it right? Is it fair? Who gets hurt? Would you be comfortable if the details of your decision or actions were made public? What would you tell your child, sibling, or young relatives to do? How does it smell?

157 Examples of Unethical Leaders (From Table 6-2) Frank P. Quattrone, former investment banker at CSFB Sanjay Kumar, former CEO of Computer Associates International, Inc. Jeffrey Greenberg, CEO of Marsh & McClellan Companies Kenneth Lay, former chairman and CEO of Enron

158 Social Responsibility Having obligations to society beyond the company’s economic obligations to owners or stockholders and also beyond those prescribed by law or contract Relates to an organization’s impact on society and goes beyond doing what is ethical

159 Examples of Socially Responsible Actions Creating a pleasant workplace Guarding the environment Engaging in philanthropy Working with suppliers to improve working conditions


161 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 12 6–160 Ethical Guidelines for Political Behavior Question 1 Is the action motivated by self-serving interests which exclude the goals of the organization? Question 2 Does the political action respect individual rights? Question 3 Is the political activity fair and equitable? Yes No Yes No Yes No Unethical Unethical Unethical Ethical

162 Creating an Ethical and Socially Responsible Culture Providing strategic leadership of ethics and social responsibility Establishing written codes of ethical conduct Developing formal mechanisms for dealing with ethical problems Accepting whistleblowers Providing training in ethics and social responsibility Placing company interests over personal interests

163 Ethics and Performance High ethics and social responsibility are related to good financial performance The relationship between social responsibility and financial performance may be a virtuous circle. Corporate social responsibility and corporate financial performance may feed and reinforce each other

164 Summary Key principles of ethical leadership include having honesty and integrity, paying attention to all stakeholders, building community, respecting the individual, and accomplishing silent victories

165 Summary (cont’d) Three factors responsible for differences in ethics and morality include the leader’s level of greed, gluttony, and avarice, the leader’s level of moral development, and the situation

166 Summary (cont’d) A leader or manager should seek answers to a series of important questions before reaching a decision about an issue that is not clearly ethical or unethical Unethical behaviors have had detrimental effects on many companies

167 Summary (cont’d) A leader can encourage ethical behavior by promoting social responsibility Ethical behavior is related to financial performance

168 Chapter Seven Power, Politics, and Leadership

169 Power, Empowerment, and Delegation Power is the potential or ability to influence decisions and control resources. Power is the potential or ability to influence decisions and control resources.

170 Four Bases of Position Power Legitimate power is the lawful right to make a decision and expect compliance Legitimate power is the lawful right to make a decision and expect compliance Reward power stems from having the authority to give employees rewards for compliance Reward power stems from having the authority to give employees rewards for compliance Coercive power is the power to punish for noncompliance Coercive power is the power to punish for noncompliance Information power stems from formal control over the information people need Information power stems from formal control over the information people need

171 Sources of Personal Power Expert power is the ability to influence others through specialized knowledge, skills, or abilities Expert power is the ability to influence others through specialized knowledge, skills, or abilities Referent power is the ability to influence others through desirable traits and characteristics Referent power is the ability to influence others through desirable traits and characteristics Prestige power is power stemming from one’s status and reputation Prestige power is power stemming from one’s status and reputation

172 Sources and Types of Power Position Power Position Power Personal Power Personal Power Power Stemming from Ownership Power Stemming from Ownership Power Stemming from Providing Resources Power Stemming from Providing Resources Power Derived from Capitalizing on Opportunity Power Derived from Capitalizing on Opportunity Power Stemming from Managing Critical Problems Power Stemming from Managing Critical Problems Power Stemming from being close to Power Power Stemming from being close to Power

173 Ownership Power A leader’s strength of ownership power depends on A leader’s strength of ownership power depends on –how closely the leader is linked to shareholders and board members –how much money he or she has invested in the firm

174 Power From Capitalizing on Opportunity Power can be derived from being in the right place at the right time and taking the appropriate action Power can be derived from being in the right place at the right time and taking the appropriate action It pays to be “where the action is.” It pays to be “where the action is.”

175 Power from Being Close to Power The closer a person is to power, the greater power he or she exerts The closer a person is to power, the greater power he or she exerts The higher a unit reports in a firm’s hierarchy, the more power it possesses The higher a unit reports in a firm’s hierarchy, the more power it possesses

176 Empowerment refers to passing decision- making authority and responsibility from management to group members. Delegation is the assignment of formal authority and responsibility for accomplishing a specific task to another person.

177 Empowerment … refers to passing decision-making authority and responsibility from managers to group members. Almost any form of participative management, shared decision making, and delegation can be regarded as empowerment.

178 Effective Empowering Practices

179 Tactics for becoming an Empowering Leader Foster Initiative and Responsibility Foster Initiative and Responsibility Link work Activities to the Goals of the Organization Link work Activities to the Goals of the Organization Provide Ample Information Provide Ample Information Allow Group Members to Choose Methods Allow Group Members to Choose Methods Encourage Self-Leadership Encourage Self-Leadership Implement Team-Based HR Policies Implement Team-Based HR Policies Establish Limits to Empowerment Establish Limits to Empowerment Continue to lead. Continue to lead.

180 Guidelines For Effective Delegation Assign duties to the right people Assign duties to the right people Delegate the whole task Delegate the whole task Give as much info as needed Give as much info as needed Retain some important tasks for yourself Retain some important tasks for yourself Obtain feedback Obtain feedback Delegate both pleasant and unpleasant tasks Delegate both pleasant and unpleasant tasks Step back from the details Step back from the details Evaluate and reward performance Evaluate and reward performance

181 Contributing Factors to Organizational Politics Pyramid-shaped Organization Structure Pyramid-shaped Organization Structure Subjective standards of performance Subjective standards of performance Environmental uncertainty and turbulence Environmental uncertainty and turbulence Emotional insecurities Emotional insecurities Machiavellian tendencies Machiavellian tendencies Disagreements that prevent rational decision making Disagreements that prevent rational decision making

182 Ethical Political Tactics and Strategies Gaining Power Gaining Power Building Relationships for Political Power Building Relationships for Political Power Avoiding Political Blunders Avoiding Political Blunders

183 Power-Gaining Strategies Develop power contacts Develop power contacts Control vital information Control vital information Stay informed Stay informed Control lines of communication Control lines of communication Bring in outside experts Bring in outside experts Make a quick showing Make a quick showing Remember that everyone expects to be paid back Remember that everyone expects to be paid back Be the first to accept reasonable changes Be the first to accept reasonable changes


185 Relationship-Building Strategies Display loyalty Display loyalty Manage your impression Manage your impression Ask satisfied customers to contact your boss Ask satisfied customers to contact your boss Be courteous, pleasant, and positive Be courteous, pleasant, and positive Ask advice Ask advice Send thank-you notes to large numbers of people Send thank-you notes to large numbers of people Flatter others sensibly Flatter others sensibly

186 Potential Political Blunders Criticizing the boss in a public forum Criticizing the boss in a public forum Bypassing the boss Bypassing the boss Declining an offer from top management Declining an offer from top management Putting your foot in your mouth Putting your foot in your mouth Not conforming to the company dress code Not conforming to the company dress code

187 Unethical Political Tactics and Strategies Back Stabbing Back Stabbing Embrace or Demolish Embrace or Demolish Setting a Person Up for Failure Setting a Person Up for Failure Divide and Rule Divide and Rule Playing Territorial Games Playing Territorial Games Creating and Resolving a False Catastrophe Creating and Resolving a False Catastrophe


189 Exercising Control Over Dysfunctional Politics Be aware of its causes and techniques Be aware of its causes and techniques Avoid favoritism Avoid favoritism Set good examples at the top of the organization Set good examples at the top of the organization Encourage goal congruence Encourage goal congruence Threaten to discuss questionable information in a public forum Threaten to discuss questionable information in a public forum Hire people with integrity Hire people with integrity

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