1. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 14 C H A P T E R: F O U R T E E N Leadership in Organizational Settings

2. 2 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Leadership at Lakeport Beverages Teresa Cascioli’s leadership has transformed Hamilton- based Lakeport Beverage Corp. into a major competitor in Ontario’s take-home beer market. Courtesy of Lakeport Beverages Corp.

3. 3 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e What is Leadership? Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members. Courtesy of Lakeport Beverages Corp.

4. 4 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e LeadershipPerspectives CompetencyPerspective BehaviouralPerspective ContingencyPerspective ImplicitLeadershipPerspective TransformationalPerspective Perspectives of Leadership

5. 5 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Integrity Drive Truthfulness Translates words into deeds Inner motivation to pursue goals Need for achievement, quest to learn Leadership Motivation High need for socialized power to accomplish team’s or firm’s goals Emotional Intelligence Perceiving, assimilating, understanding, and regulating emotions Seven Leadership Competencies more

6. 6 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Intelligence Above average cognitive ability Can analyze problems/opportunities Knowledge of the Business Familiar with business environment Aids intuitive decision making Self-Confidence High self-efficacy regarding ability to lead others Seven Leadership Competencies (con’t)

7. 7 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e In Search of Leader Integrity Studies say integrity is the most important leadership characteristic Also called “authentic leadership”  Individual acts with sincerity  Has a higher moral capacity to judge dilemmas Yet, most people think business leaders lack integrity:  73% say CEOs of large firms can’t be trusted (US)  Nearly 40% do not trust their immediate boss (UK)  Approx 50% say business wrongdoing has undermined their trust in employers (Australia)

8. 8 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Competency Perspective Limitations Implies a universal approach  But some competencies might not be valuable in all situations Alternative combinations of competencies might work just as well  Not necessarily the same set needed Some traits are subjective  Supports implicit leadership theory Several competencies indicate leadership potential, not actual leadership

9. 9 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Leader Behaviour Perspective People-oriented behaviours  Showing mutual trust and respect  Concern for employee needs  Desire to look out for employee welfare Task-oriented behaviours  Assign specific tasks  Ensure employees follow rules  Set “stretch goals” to achieve performance capacity

10. 10 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Path-Goal Leadership Styles Directive  Task-oriented behaviours Supportive  People-oriented behaviours Participative  Encouraging employee involvement Achievement-oriented  Using goal setting and positive self- fulfilling prophecy

11. 11 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Path-Goal Leadership Model EmployeeContingencies EnvironmentalContingencies LeaderBehaviours DirectiveDirective SupportiveSupportive ParticipativeParticipative Achievement- orientedAchievement- oriented LeaderEffectiveness Employee motivationEmployee motivation Employee satisfactionEmployee satisfaction Leader acceptanceLeader acceptance

12. 12 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e DirectiveSupportiveParticipativeAchievementEmployeeContingencies Path-Goal Contingencies Skill/Experience lowlowhighhigh Locus of Control externalexternalinternalinternal Task Structure nonroutineroutinenonroutine? Team Dynamics –ve norms low cohesion+ve norms?EnvironmentalContingencies DirectiveSupportiveParticipativeAchievement

13. 13 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Other Contingency Leader Theories Situational Leadership Model (Hersey/Blanchard)  Effective leaders vary style with follower “readiness”  Leader styles – telling, selling, participating, and delegating Fiedler’s Contingency Model  Leadership style is stable --based on personality  Best style depends on situational control -- leader-member relations, task structure, position power

14. 14 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Leadership Substitutes Contingencies that limit a leader’s influence or make a particular leadership style unnecessary. Examples:  Training and experience replace task-oriented leadership  Cohesive team replaces supportive leadership  Self-leadership replaces achievement-oriented leadership Evidence suggests that substitutes might help, but don’t completely substitute for real leadership

15. 15 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Ray Young Transforms GM Brazil Ray G. Young, the Canadian executive who now leads General Motors’ operations in Brazil, is making an impact in that highly competitive market. “He has brought a sense of purpose to General Motors that they didn’t seem to have before,” says industry consultant Ricardo Durazzo. Paul Fridman for the New York Times

16. 16 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Transformational v. Transactional Leaders Transformational leaders  Leading -- changing the organization to fit environment  Change agents Transactional leaders  Managing -- linking job performance to rewards  Ensure employees have necessary resources  Apply contingency leadership Paul Fridman for the New York Times

17. 17 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Transformational v. Charismatic Leaders Is charismatic leadership essential for transformational leadership? Some experts say yes, but emerging view is that:  Charisma is distinct from transformational leadership  A personal trait that might help transform, or might just help the leader  Charismatic leadership might have opposite effect -- creates dependence, not empowerment Paul Fridman for the New York Times

18. 18 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e TransformationalLeadership Communicating the Vision Modelling Creating a Strategic Vision BuildingCommitment Transformational Leadership Elements

19. 19 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Evaluating Transformational Leadership Transformational leadership is important  Higher employee satisfaction, performance, org citizenship, creativity Transformational leadership limitations  Circular research Transformational leaders identified by their success  Universal theory Need a contingency-oriented theory Recognize differences across cultures

20. 20 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Implicit Leadership Perspective Attributing Leadership StereotypingLeadership Need for SituationalControl Implicit Leadership Perspective

21. 21 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Ubuntu Leadership Ubuntu is “that profound African sense that each of us is human through the humanity of other human beings,” explains former South African president Nelson Mandela (shown here). The ubuntu value system provides a framework for leading others in Africa. ©EPA Photo/EPA/ Kim Ludbrook/Corbis

22. 22 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Cultural Issues in Leadership Societal cultural values and practices affect leaders:  Shape leader’s values/norms  Influence decisions and actions Some leadership styles are universal, others differ across cultures  “Charismatic visionary” seems to be universal  Participative leadership works better in some cultures than others ©EPA Photo/EPA/ Kim Ludbrook/Corbis

23. 23 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Gender Issues in Leadership Male and female leaders have similar task- and people-oriented leadership. Participative leadership style is used more often by female leaders.

24. 24 © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Canadian OB 6e Evaluating Female Leaders Past evidence  Women rated less favourably than equivalent male leaders due to stereotyping Recent evidence  Women rated more favourably than men, particularly on emerging leadership styles (coaching, teamwork)

25. © 2006 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill Ryerson 14 C H A P T E R: F O U R T E E N Leadership in Organizational Settings