1. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 1 CHAPTER 13 LEADERSHIP

2. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 2 Lecture outline How leaders influence others Searching for leadership traits Identifying leadership behaviour Developing situational theory Transformational leadership Are leaders necessary?

3. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 3 Leadership Process of influencing others to achieve organisational goals.

4. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 4 How leaders influence others Sources of leadership power: Legitimate power Power stemming from a position’s placement in the managerial hierarchy. Reward power Power based on the capacity to provide valued rewards to others. Coercive power Power based on the ability to punish others.

5. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 5 How leaders influence others Sources of leadership power: Expert power Power based on the possession of expertise valued by others. Information power Power based on access and control over the distribution of information. Referent power Power resulting from being liked, admired or identified with.

6. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 6 Sources of leadership power Coercive powerReward power Legitimate power/ formal authority Expert power Referent power Information power

7. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 7 Effective use of power Likely reaction to use of power: = Resistance = Compliance = Commitment Referent Expert Legitimate Information Reward Coercion

8. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 8 Leadership traits Distinctive internal qualities or characteristics of an individual, such as physical and personality characteristics, skills, abilities and social factors. Early research identified no common leadership traits. Current research is inconclusive.

9. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 9 Leadership behaviour Theoretical approach based on the idea that specific behaviours may make some leaders more effective than others.

10. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 10 Leadership behaviour Iowa, Michigan & Ohio studies: Iowa Looked at leadership styles (autocratic, democratic, laissez faire) Workers preferred democratic style but this not best for performance. Michigan Employee centred leaders superior to Job centred leaders. Ohio Suggested that the ideal was for leaders to combine job-centred-ness with an ability to build mutual trust with subordinates.

11. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 11 Leadership grid 1 2 3 4 5 6 7 8 9 Concern for production Concern for people

12. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 12 Gender & cultural differences Gender There are few substantial differences between male and female leaders. Culture Japanese: group focus, long-term, humanistic. European: individual focus, more humanistic than US. USA: individual focus.

13. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 13 Developing situational theory Situational theory: Theories of leadership taking into consideration important situational factors.

14. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 14 Developing situational theory Fiedler’s contingency theory Theory: Effective groups depend on match between a leader’s style of relating with subordinates & the extent to which the situation gives control to the leader. Leader’s style: High member relations leader is concerned with people Task-structure leader reduces ambiguity — ‘Do I know what I am supposed to do?’ Position power — how well supported is the leader by his/her superiors?

15. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 15 Developing situational theory Normative leadership model: Model that assists leadership assess critical situational factors that affect the extent to which they involve subordinates in particular decisions. Range of options is from: A1: autocratic decision making - G11: democratic decision making

16. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 16 Developing leadership theory Situational leadership model Theory based on the premise that leaders need to alter their behaviours depending on one major situational factor—the readiness of followers.

17. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 17 Developing situational theory Situational leadership model High RELATIONSHIPRELATIONSHIP Low High Task High relationship and low task High task and high relationship Low relationship and low task High task and low relationship Selling Telling Delegating Participating

18. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 18 Developing leadership theory Path–goal theory Theory attempting to explain how leader behaviour can positively influence the motivation and job satisfaction of subordinates.

19. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 19 Developing leadership theory Path–goal theory : Leader behaviour Directive Supportive Participative Achievement Leader behaviour Directive Supportive Participative Achievement Environmental contingency factors Task structure, formal authority, work groups Environmental contingency factors Task structure, formal authority, work groups Subordinate contingency factors Personality, experience, abilities, needs Subordinate contingency factors Personality, experience, abilities, needs Outcomes: Performance Satisfaction Outcomes: Performance Satisfaction

20. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 20 Transformational leadership Transformational leaders Leaders who motivate individuals to perform beyond normal expectations by inspiring subordinates to focus on broader missions transcending their own self-interests.

21. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 21 Transformational leadership Motivate others Vision beyond self-interest Seek intrinsic higher level goals Seek performance beyond expectations Have charisma Key characteristics of transformational leaders Key characteristics of transformational leaders

22. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 22 Are leaders necessary? Neutralisers: Situational factors preventing leader behaviour from influencing subordinate performance/satisfaction. These include: Subordinate high need for independence. Low subordinate valence for available rewards. Physical distance of leader from subordinates.

23. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 23 Are leaders necessary? Substitutes: Situational factors making the impact of leadership impossible or unnecessary. These include: Satisfying work. Able and experienced subordinates. Professional orientation of subordinates. Routine work, clearly specified methods/feedback.

24. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 24 Leadership & the organisational cycle Entrepreneurial Collectivity Formalisation & control Formalisation & control Elaboration of structure Elaboration of structure Transformational Transactional Transformationa l

25. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 25 Lecture summary How leaders influence others –Sources of power –Use of power Searching for leadership traits – Inconclusive results Identifying leadership behaviour –Iowa, Michigan, Ohio studies –Leadership styles, employee versus job- centredness

26. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 26 Lecture summary Developing situational theory Fiedler Contingency model, Normative model, Situational leadership model, Path–Goal theory Transformational leadership Charisma, Individual consideration & Intellectual stimulation Are leaders necessary? Neutralisers, substitutes