Chapter 11 Leadership Exploring Management Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Leadership

Chapter 11 “I have a dream,” said Martin Luther King, Jr, and his voice traveled across generations. Visionary leaders communicate shared dreams and inspire others to pursue lofty goals. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

Learning Objectives Chapter 11 Understand the foundations for effective leadership. (11.1) Identify insights of the contingency leadership theories.(11.2) Discuss current issues and directions in leadership development. (11.3) Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Takeaway – answers to come Leadership is one of the four functions of management. Leaders use position power to achieve influence. Leaders use personal power to achieve influence. Leaders bring vision to leadership situations. Leaders display different traits in the quest for leadership effectiveness. Leaders display different styles in the quest for leadership effectiveness. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 The Leadership Function Leading builds commitments and enthusiasm and turns plans into action. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Figure 11.1

FOUNDATIONS OF LEADERSHIP 11.1 Power Power is the ability to get others to do what needs to be done. Position Power Personal Power Management Power Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Power Position power – what an individual can do based on position in the organization Reward power “you can have this if you do this” Coercive power “do this or I’ll take this away” Legitimate power “do it because I’m your boss” Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Power Personal Power – how the leader is perceived as a person Expert power special skill or knowledge that influences behavior Referent power admirable and likeable qualities that influence behavior Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Vision Vision is a clear sense of the future. Visionary leadership is the ability to communicate the vision and how to accomplish the vision. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Leadership Traits People want leaders who are honest competent forward-looking inspiring credible Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Leadership Styles Leadership styles are a pattern of behavior Autocratic Acts in a “command and control” fashion Human relations Emphasizes people over tasks Democratic Participative with a strong emphasis on people and task Laissez-faire Little concern for people or tasks Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. See Figure 11.2 in the text.

FOUNDATIONS OF LEADERSHIP 11.1 Leadership Styles Traits Often Shared by Effective Leaders Drive Self-confidence Creativity Cognitive Ability Business Knowledge Motivation Flexibility Honesty and Integrity Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. See Table 11.1 in the text

FOUNDATIONS OF LEADERSHIP 11.1 Study Guide for 11.1 Rapid Review: Leadership, as one of the management functions, is the process of inspiring others to work hard to accomplish important tasks. Leaders use power from two primary sources: position power—which includes rewards, coercion, and legitimacy, and personal power—which includes expertise and reference. The ability to communicate a vision or clear sense of the future is considered essential to effective leadership. Personal characteristics associated with leadership success include honesty, competency, drive, integrity, and self-confidence. Research on leader behaviors focused attention on concerns for task and concerns for people, with the leader high on both and using a democratic style considered most effective. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Study Guide for 11.1 Questions for Discussion: When, if ever, is a leader justified in using coercive power? How can a young college graduate gain personal power when moving into a new job as team leader? Why might a leader with a human relations style have difficulty getting things done in an organization? Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

FOUNDATIONS OF LEADERSHIP 11.1 Be Sure You Can…for 11.1 illustrate how managers use position and personal power. define vision and give an example of visionary leadership. list five traits of successful leaders. describe alternative leadership styles based on concern for task and concern for people. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Takeaway – answers to come Fiedler’s contingency model matches leadership styles with situational differences. The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers. House’s path-goal theory matches leadership styles with task and follower characteristics. Leader-member exchange theory describes how leaders treat in-group and out-group followers. The Vroom-Jago model describes a leader’s choice of alternative decision-making methods. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Contingency Leadership Successful leadership varies by the circumstances, task, leader and followers. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Contingency Leadership Fiedler’s contingency model Leadership style depends on the situation. Least Preferred Co-worker Scale (LPC) Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Figure 11.3

CONTINGENCY THEORIES 11.2 Hersey-Blanchard Hersey-Blanchard situational model matches leadership style with maturity of followers. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Figure 11.4

CONTINGENCY THEORIES 11.2 Path-Goal Theory House’s Path-Goal theory Help followers move along paths to achieve work and personal goals Four leadership styles Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Directive leader Supportive leader Achievement oriented leader Participative leader

CONTINGENCY THEORIES 11.2 Leader-Member Exchange Leader-member exchange (LMX) In-groups Out-groups Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Vroom-Jago is made by the leader and communicated to the group Authority decision is made by a leader after receiving input from the group Consultative decision is made by the group themselves Group decision Vroom-Jago model describes decision-making methods Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Study Guide for 11.2 Rapid Review: Fiedler’s contingency model describes how situational differences in task structure, position power, and leader–member relations may influence the success of task-motivated and relationship-motivated leaders. The Hersey-Blanchard situational model recommends using task-oriented and people-oriented behaviors, depending on the “maturity” levels of followers. House’s path-goal theory describes how leaders add value to situations by using supportive, directive, achievement-oriented, and/or participative styles as needed. Leader–member exchange theory recognizes that leaders respond differently to followers in their in-groups and out-groups. The Vroom-Jago leader-participation theory advises leaders to choose decision-making methods—authority, consultative, group—that best fit the problems to be solved. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Study Guide for 11.2 Questions for Discussion: What are the potential career development lessons of Fiedler’s contingency leadership model? What are the implications of follower maturity for leaders trying to follow the Hersey-Blanchard situational leadership model? Is it wrong for a team leader to allow the formation of in-groups and out-groups in his or her relationships with team members? Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CONTINGENCY THEORIES 11.2 Be Sure You Can…for 11.2 explain Fiedler’s contingency model for matching leadership style and situation. identify the three variables used to assess situational favorableness in Fiedler’s model. identify the four leadership styles in the Hersey-Blanchard situational leadership model. explain the importance of follower “maturity” in the Hersey-Blanchard model. describe the best use of directive, supportive, achievement-oriented, and participative leadership styles in House’s path-goal theory. explain how leader–member exchange theory deals with in-groups and out-groups among a leader’s followers Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Takeaway – answers to come Transformational leadership inspires enthusiasm and extraordinary performance. Emotionally intelligent leadership handles emotions and relationships well. Interactive leadership emphasizes communication, listening, and participation. Moral leadership builds trust from a foundation of personal integrity. Servant leadership is follower-centered and empowering. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Transformational Leadership Charismatic leadership Inspires others, creates enthusiasm, and leads to extraordinary performance Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Transformational Leadership Transactional leadership directs the efforts of others through tasks, rewards, and structures. Transformational leadership inspirational and arouses extraordinary effort and performance. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Transformational Leadership Transformational leaders raise the confidence, aspirations, and performance of followers through these special qualities.34 Vision Charisma Symbolism Empowerment Intellectual Stimulation Integrity Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Emotional Intelligence Emotional Intelligence (EI) Ability to manage emotions in relationships Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Interactive Leadership Emphasizes communication, listening and participation Gender similarities Men and women are similar in terms of psychological properties Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Moral Leadership Builds trust through integrity Ethical leadership Leaders with high ethical standards build ethical cultures Integrity Honest, credible, and consistent behavior that puts values into action and earns trust Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Servant Leadership Commitment to others Other-centered rather than self-centered Empowerment Give others freedom to gain power, make decisions, and achievement influence Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Study Guide for 11.3 Rapid Review: Transformational leaders use charisma and emotion to inspire others toward extraordinary efforts to achieve performance excellence. Emotional intelligence, the ability to manage our emotions and relationships effectively, is an important leadership capability. The interactive leadership style, sometimes associated with women, emphasizes communication, involvement, and interpersonal respect. Moral or ethical leadership is built from a foundation of personal integrity, creating a basis for trust and respect between leaders and followers. A servant leader is follower-centered, not self-centered, and empowers others to unlock their personal talents in the quest for goals and accomplishments that help society. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Study Guide for 11.3 Questions for Discussion: Should all managers be expected to excel at transformational leadership? Do women lead differently than men? Is servant leadership inevitably moral leadership? Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

DIRECTION IN LEADERSHIP DEVELOPMENT 11.3 Be Sure You Can…for 11.3 differentiate transformational and transactional leadership. list the personal qualities of transformational leaders. explain how emotional intelligence contributes to leadership success. discuss research findings on interactive leadership. explain the role of integrity as a foundation for moral leadership. explain the concept of servant leadership. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.