Lesson 6 Leadership Styles for Decision Making 1

Purpose to understand a range of leadership styles for decision making to determine how to choose a leadership style to decide who the leader involves in making a decision 2

Which of the following leadership styles is better? “I put most problems into my team’s hands and leave it to them to carry the ball from there.” “I believe in getting things done. Someone has to call the shots around here, and I think it should be me.” 3

Do all leaders use the same style? Do all effective leaders use the same style? 4 Leadership Styles

Mutual – leader allows group to reach whatever decision it chooses within limits. Consult – leader receives input, makes final decision Test – leader presents tentative decision subject to change Sell – leader sells a decision already made Tell –leader announces decision already made 5

Planning the Company Picnic Mutual - We need to plan our annual picnic. Set a time and place. Your only constraint is that it must take place within 10 miles of our location and be held some time in July or August. Consult - I would like your suggestions on when and where to have our picnic and I will then make a decision. Test - What do you think of having our picnic at Clearbrook Park, on Saturday, July 15th? Sell - We will have our picnic at Clearbrook Park on Saturday, July 15th because everyone liked going there last year. Tell - We will have our picnic at Clearbrook Park on Saturday, July 15th. 6

7 greater freedom of the followers greater use of authority by the leader Tell Sell Test Consult Mutual Leadership Behavior

No one style is best for all circumstances. Effective leaders use whatever style is most appropriate. Is one leadership style better than another? 8

How does a leader choose a style? time technical quality of the decision and skill level of participants degree of commitment required availability of the fewest number of people who should be involved leader’s willingness to be influenced 9

Who does a leader involve? decision-makers technical experts people who need to be informed about the decision person not directly involved but who maintains veto power 10

Teams function best when the leader chooses the proper decision making style for the particular situation. Teams are less effective when the leader chooses an inappropriate style. Teams function especially poorly when team members believe leaders are in one style, but are in reality in another. Observations 11

What About You?! 12

Frequency of Use Least Frequently Most Frequently 13 Position the five styles according to how often you employ them

Style and Comfort of Use People tend to use the leadership style with which they are most comfortable. 14

Observation When leaders use the most appropriate leadership style, followers are more likely to move up the scale of possible responses. 15

Which of the following styles is better? “ I put most problems into my team’s hands and leave it to them to carry the ball from there.” “I believe in getting things done. Someone has to call the shots around here, and I think it should be me.” 16

Implications for Leaders Leaders are typically unaware of the leadership styles they use. Awareness will result in choosing the right style. As followers increase their knowledge and skills they can more fully participate in the decision-making process. By making everyone aware of this process, collective learning is enhanced. This tool is a key to creating exceptional organizations. 17

Summary There are five leadership styles: tell, sell, test, consult, and mutual. The leader needs to choose the right style for the particular situation. The leader needs to involve the appropriate people in a decision. Teams function best when the leader uses the right style. 18

Bibliography Tannenbaum, Robert and Warren H. Schmidt. “How to Choose a Leadership Patter,” Harvard Business Review. Boston: Harvard Business School Publishing Division, March-April

This lesson is a modified excerpt from the book, Compass – Creating Exceptional Organizations: A Leader’s Guide, written by William F. Brandt, Jr., cofounder and former CEO of American Woodmark Corporation – the third largest producer of kitchen cabinets in America. Copyright 2013 William F. Brandt, Jr. This lesson may be copied, presented and/or distributed to up to five people. Distribution beyond five is subject to a user fee as described in the website: CompassCEO.com The book and related materials are also available from the website: CompassCEO.com 20