Chapter Seven Other Leadership Perspectives: Upper Echelon and Leadership of Nonprofits

Factors that Differentiate Micro and Macro Leadership Who the leader is Scope of responsibility Focus Effectiveness criteria

The Domain of Strategic Leaders Structure Technology Leadership Strategy Strategic Leaders Culture Environment

Dual Role of Strategic Leaders Moderating Factors Strategy Formulation Strategy Implementation Leader PERFORMANCE

Moderators of Executive Discretion External Factors Uncertainty Type of industry Market growth Legal constraints Internal Factors Stability Size and structure Culture Stage of organizational development TMT and BOD

Strategic Leadership Types High challenge- seeking Low challenge- CHALLENGE- SEEKING HIGH-CONTROL INNOVATOR (HCI) Challenge-seeker who maintains tight control over organization PARTICIPATIVE INNOVATOR (PI) Challenge-seeker who delegates control of organization STATUS QUO GUARDIAN (SQG) Challenge-averse who maintains tight control over organization PROCESS MANAGER (PM) Challenge-averse who delegates control of organization NEED FOR CONTROL High control Low control

How Executives Affect their Organizations Environment Strategy Direct Decisions Allocation of resources Reward system Selection of other leaders Promotions Role modeling Culture Leader Structure Technology Leadership

Direct Decisions Vision Mission Strategy Structure Organizational culture - ? Selection of other leaders

Allocation of Resources and Reward System Decisions regarding funding and budgets; Allocation of resources to support goals Formal rewards such as salary and bonuses Informal rewards such as recognition Promotion of other leaders and managers

Setting the Norm and Role Modeling Setting decision criteria and rules by which others make decisions Active or subtle role modeling of behaviors and styles

Factors that Affect Executives’ Salaries Firm size Industry competition CEO power and discretion Internationalization High stress and instability

Characteristics of Nonprofits Operate without profit Funds reinvested inside the organization Public service mission Voluntary board of directors Funded through contributions

Leadership Challenges in Nonprofits Leaders must rely on participatory leadership to build consensus Strong ethical requirements Motivating and retaining employees Finding and training future leaders