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Learning Outcomes Define leadership, power and authority

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2 Learning Outcomes Define leadership, power and authority
Discuss leadership as it relates to management Explain leadership attitudes

3 Learning Outcomes 4. Describe the differences between a Theory X and Theory Y manager. 5. Explain the differences between transactional, transformational and charismatic leadership styles. 6. Identify strategies for effectively managing corporate culture.

4 Power, Authority and Leadership
A measure of a person’s potential to get others to do what he or she wants them to do Also to avoid being forced by others to do what he or she does not want to do

5 Power, Authority and Leadership
Sources of Power Organizational Ability to reward or punish Comes from position Personal Expert: skills, knowledge Referent: personal characteristics

6 Power, Authority and Leadership
The right to issue directives and expend resources Related to power but is narrower in scope Function of position

7 Power, Authority and Leadership
A person can have power without formal authority Authority decreases if coercive power and reward power decreases

8 Leadership The ability to influence people to willingly follow Informal leader: combine referent and expert power

9 Leadership vs. Management
Not the same, but not entirely different Leadership means creating a vision of the future and enlisting support from employees Management is the process of planning, organizing, staffing, motivating and controlling through formal authority

10 Leader Attitudes Douglas McGregor Theory X Theory Y
Authoritarian style of leadership Theory Y Democratic or laissez-faire style of leadership Self-fulfilling prophecy The idea that you get what you expect If manager’s expectations are high, they may get better results; if expectations are low, productivity is likely to be low

11 Classifying Leader Types
Study leadership as traits or behaviors Trait theory Refers to the characteristics the leader possesses Research is not consistent Behaviors refer to what the leader does

12 Leadership Styles Autocratic Laissez-faire Democratic
Makes most of the decisions for the group Laissez-faire Allows people within the group to make all of the decisions Democratic Guides and encourages the group to make decisions

13 Ohio State Studies Study to determine what a successful leader does
Created the Leader Behavior Description Questionnaire Questionnaire created based on this question Shows that consideration (showing concern) and initiating structure (directing group toward goals) were the two most important behaviors Leaders who score high on consideration have happier employees Relationship between consideration and leader effectiveness depends on the type of group

14 University of Michigan Studies
Tried to discover principles that contributed to productivity of group and member satisfaction The manager characteristics of a high producing group: General rather than close supervision Employees have some authority and responsibility Managers spend more time supervising Employee-oriented rather than production- oriented

15 More Leadership Studies: Renesis Likert Study
Four styles of leadership Exploitative authoritative Benevolent authoritative Consultative Participative

16 Managerial Grid Developed by Robert Blake and Jane Mouton
Ratings from a questionnaire are based on level of concern of employee and concern for production Identified the following styles: Authority-obedience Country club management Team management Impoverished management

17 Contingency Approach: Fred Fiedler
The study of use of different styles in different situations Task- or relationship-oriented leader Considerations in knowing which style to use Leader member relations: degree that others trust and respect the leader Task structure: how structured is the job task Position power: influence associated with the job

18 Path-Goal Theory of Leadership
Attempts to define the relationships between a leader’s behavior and the subordinates’ performance and work activities Leader’s behavior falls into types: Role classification leadership Supportive leadership Participative leadership Autocratic leadership Each leadership behavior results in different levels of performance and satisfaction

19 Situational Leadership Theory: Paul Henry & Kenneth Blanchard
Maturity of followers should be a consideration in leadership style The amount of structure should be related to the amount of experience the employee has

20 Classifying Leader Types
Transactional Leaders tell employees what to do, take corrective action if they don’t do it Transformational Cultivating employee acceptance of the group mission Encouragement Inspiration

21 Classifying Leader Types
Charismatic Leaders and followers develop a relationship based on personality of leader Usually involves heroic feats on the part of the leader

22 Lessons from Leadership Studies
The selection process can’t be developed to accurately predict successful leaders Complications: changing nature of managerial roles Most leadership training assumes 1 best way to lead In reality, leadership is situational Range of techniques are needed

23 Managing Corporate Culture
Culture definition: The set of important understandings that members of a community share in common Corporate culture: The way things are done, often unspoken/written

24 Culture Components History Environment Staffing
The way things have always been done Environment The mission and goals created and how imbedded they are into the way things are done Staffing The values and personalities of those who are hired influence culture How do people “fit”

25 Culture Components Entry socialization Strong and weak cultures
A new employee is most likely to challenge the culture Refers to how well a new employee is accepting of the culture Strong and weak cultures A strong culture is clearly defined In a weak culture, individuals act in ways that are inconsistent with the company values

26 Corporate Culture Characteristics of corporate culture
Individual autonomy Structure Support Identification Performance reward Conflict tolerance Risk tolerance

27 Types of Cultures Tough person, macho culture
Individualists who take high risks and get quick feedback Not much cooperation Don’t learn from mistakes Competition

28 Types of Cultures Work hard, play hard culture
Activity is key to success Rewards accrue to persistence and ability to find a need and fill it Value volume and people who are outgoing thrive

29 Types of Cultures Bet your company culture
Requires big-stakes decisions Lots of time passes before results are known Pressure to make the right decision always present

30 Types of Cultures Process culture Subcultures
Low risk with little feedback Employees focus on how things are done rather than outcomes Subcultures Exist in every organization Global companies have a variety of subcultures

31 Cultural Change Takes 6-15 years Change is needed if:
Organization has strong values that do not fit in the changing environment Competitive industry Organization is mediocre If the company is joining the ranks of a very large company The organization is small but growing rapidly Time and money involved in changing culture

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