Management and Leadership: What do you think? Groups 1. Describe a “good” leader. Describe “behaviors” of a good leader. 2. Give an example(s) of a “good” leader? 3. How are management and leadership related?

The Organization

Leadership and Organizational Effectiveness Individual Effectiveness Group Effectiveness Organizational Effectiveness

Leadership and Organizational Effectiveness Individual Effectiveness Pi=f (A i, Mi) Group Effectiveness PG = Sum Pi +  Organizational Effectiveness

Leadership and Organizational Effectiveness Process Losses: Differences in values and norms; Structure; Unclear Roles; Norms; Leadership;

Effective Leadership: What do we know? Definition: An attempt to use non-coercive types of influence to motivate individuals to accomplish some goal. Five power bases: Reward, Expert, Referent Legitimate, Coercive

What is power? Power is the ability to … Influence is … Get someone to do something you want done. Make things happen in the way you want. Influence is … What you have when you exercise power. Expressed by others’ behavioral response to your exercise of power.

What is power? Position power. Derives from organizational sources. Types of position power. Reward power. Coercive power. Legitimate power. Process power. Information power. Representative power.

What is power? Process power. The control over methods of production and analysis. Places an individual in the position of: Influencing how inputs are transformed into outputs. Controlling the analytical process used to make choices.

What is power? Information power. The access to and/or control of information. May complement legitimate hierarchical power. May be granted to specialists and managers in the middle of the information system. People may “protect” information in order to increase their power.

What is power? Representative power. The formal right conferred by the firm to speak as a representative for a potentially important group composed of individuals across departments or outside the firm. Helps complex organizations deal with a variety of constituencies.

What is power? Personal power. Derives from individual sources. Types of personal power. Expert power. Rational persuasion. Referent power.

What is power? Expert power. The ability to control another person’s behavior through the possession of knowledge, experience, or judgment that the other person needs but does not have. Is relative, not absolute.

What is power? Rational persuasion. The ability to control another person’s behavior by convincing the other person of the desirability of a goal and a reasonable way of achieving it. Much of a supervisor’s daily activity involves rational persuasion.

What is power? Referent power. The ability to control another’s behavior because the person wants to identify with the power source. Can be enhanced by linking to morality and ethics and long-term vision.

How do managers acquire the power needed for leadership? Managers increase the visibility of their job performance by: Expanding contacts with senior people. Making oral presentations of written work. Participating in problem-solving task forces. Sending out notices of accomplishment. Seeking opportunities to increase name recognition.

How do managers acquire the power needed for leadership? Obedience and the acceptance of authority For a directive to be accepted as authoritative, the subordinate: Can and must understand it. Must feel mentally and physically capable of carrying it out. Must believe that it is consistent with the organization’s purpose. Must believe that it is consistent with his or her personal interests.

What is empowerment, and how can managers empower others? The process by which managers help others to acquire and use the power needed to make decisions affecting themselves and their work. Considers power to be something that can be shared by everyone working in flatter and more collegial organizations. Provides the foundation for self-managing work teams and other employee involvement groups.

What is empowerment, and how can managers empower others? Power as an expanding pie. With empowerment, employees must be trained to expand their power and their new influence potential. Empowerment changes the dynamics between supervisors and subordinates.

What is empowerment, and how can managers empower others? Ways to expand power. Clearly define roles and responsibilities. Provide opportunities for creative problem solving coupled with the discretion to act. Emphasize different ways of exercising influence. Provide support to individuals so they become comfortable with developing their power. Expand inducements for thinking and acting, not just obeying.

Effective Leadership: What do we know? Trait Theories of Leadership Intelligence: judgment, decisiveness, knowledge, fluency of speech Personality: Adaptability, alertness, creativity, personal integrity, self-confidence Abilities: Ability to enlist cooperation, interpersonal skills, tact, diplomacy Which traits? Comprehensiveness?

What are the trait and behavioral leadership perspectives? Identifiable characteristics of leaders. Energetic. Operate on an even keel. Seek power as a means of achieving a vision or goal. Ambitious. High need for achievement. Recognize their own strengths and weaknesses. Oriented toward self-improvement.

What are the trait and behavioral leadership perspectives? Identifiable characteristics of leaders — cont. Integrity. Not easily discouraged. Deals well with large amounts of information. Above-average intelligence. Good understanding of their social setting. Possess specific knowledge concerning their industry, firm, and job.

What do we know about leadership? Leader Behaviors - One best way Employee-centered, job-centered leaders Consideration, initiating structure The “Hi-Hi Hypothesis” Contingency Approach to Leadership Fiedler; Vroom and Yetton

What are the trait and behavioral leadership perspectives? Behavioral theories. Assume that leader behaviors are crucial for explaining performance and other organizational outcomes. Major behavioral theories. Michigan leadership studies. Ohio State leadership studies. Leadership Grid.

What are the trait and behavioral leadership perspectives? Michigan leadership studies. Employee-centered supervisors. Place strong emphasis on subordinate’s welfare. Production-centered supervisors. Place strong emphasis on getting the work done. Employee-centered supervisors have more productive work groups than production-centered supervisors.

What are the trait and behavioral leadership perspectives? Ohio State leadership studies. Consideration. Concerned with people’s feelings and making things pleasant for the followers. Initiating structure. Concerned with defining task requirements and other aspects of the work agenda. Effective leaders should be high on both consideration and initiating structure.

What are the trait and behavioral leadership perspectives? Leadership Grid. Developed by Robert Blake and Jane Mouton. Built on dual emphasis of consideration and initiating structure. A 9 x 9 Grid (matrix) reflecting levels of concern for people and concern for task. 1 reflects minimum concern. 9 reflects maximum concern.

What are the situational or contingency leadership approaches? Leader traits and behaviors can act in conjunction with situational contingencies. The effects of leader traits are enhanced by their relevance to situational contingencies. Major situational contingency theories. Fiedler’s leadership contingency theory. Vroom - Yetton House’s path-goal theory of leadership. Hersey and Blanchard’s situational leadership model.

What are the situational or contingency leadership approaches? Fiedler’s leadership contingency theory. Initiated the situational contingency approach in the mid-1960s. Fiedler’s approach emphasized that group effectiveness depends on an appropriate match between the leader’s style and situational demands.

What are the situational or contingency leadership approaches? Key variables in Fiedler’s contingency model. Situational control. The extent to which a leader can determine what his or her group is going to do as well as the outcomes of the group’s actions and decisions. Is a function of: Leader-member relations. Task structure. Position power.

What are the situational or contingency leadership approaches? Key variables in Fiedler’s contingency model — cont. Least preferred co-worker (LPC) score reflects a person’s leadership style. High-LPC leaders have a relationship-motivated style. Low-LPC leaders have a task-motivated style.

What are the situational or contingency leadership approaches? Implications of Fiedler’s contingency model. Task-motivated leaders have more effective groups under conditions of low or high situational control. Relationship-motivated leaders have more effective groups under conditions of moderate situational control.

Leadership Styles Authoritative/ Authoritarian Democratic Laissez-faire OR Autocratic Participative Group based

Vroom Yetton/ Vroom Jago Prescriptive or normative 7 situational factors Importance of technical quality of decision Information Problem structure Acceptance Likely acceptance Goal sharing Likelihood of conflict 5 styles AI and II, CI and II, GII Matching style to situation

Kouzes and Posner: The Leadership Challenge - Five Leadership Practices Definition: The art of mobilizing others to want to struggle for shared aspirations Observation of people with leadership responsibilities - 3,000 cases Purpose: “Liberate the leader in everyone” - leadership development and self-improvement Data based on “personal best leadership experience” - consistent pattern of leader behavior that created extraordinary results

Five Leadership Practices Five “sets of behavior” 1. Challenging the process Searching for opportunities - grow, innovate, improve Experimenting and taking risks – mistakes, failures = learn 2. Inspiring a shared vision Envisioning the future Enlisting others - appealing to values, interest, hopes 3. Enabling others to act Fostering collaboration-mutual respect Strengthening others - make feel powerful and capable

Five Leadership Practices 4. Modeling the way Setting the example - establish principles Achieving small wins - interim goals, unravel bureaucracy 5. Encouraging the heart Recognizing individual contributions Celebrating team accomplishments

What are the situational or contingency leadership approaches? House’s path-goal theory of leadership. Emphasizes how a leader influences subordinates’ perceptions of both work goals and personal goals and the links, or paths, found between these two sets of goals. The theory assumes that a leader’s key function is to adjust his/her behavior to complement situational contingencies.

What are the situational or contingency leadership approaches? House’s path-goal theory of leadership — cont. Leader behaviors. Directive leadership. Supportive leadership. Achievement-oriented leadership. Participative leadership.

What are the situational or contingency leadership approaches? House’s path-goal theory of leadership — cont. Situational contingency variables. Subordinate attributes — authoritarianism, internal-external orientation, and ability. Work setting attributes — task, formal authority system, and primary work group.

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding directive leadership. Positive impact on subordinates when task is clear; negative impact when task is ambiguous. More directiveness is needed when ambiguous tasks are performed by highly authoritarian and closed-minded subordinates.

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding supportive leadership. Increases satisfaction of subordinates working on highly repetitive, unpleasant, stressful, or frustrating tasks.

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding achievement-oriented leadership. Encourages subordinates to strive for higher performance standards and to have more confidence in their ability to meet challenging goals. Increases effort-performance expectancies for subordinates working in ambiguous, nonrepetitive tasks.

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding participative leadership. Promotes satisfaction on nonrepetitive tasks that allow for subordinates’ ego involvement. Promotes satisfaction for open-minded or nonauthoritarian subordinates working on repetitive tasks.

What are the situational or contingency leadership approaches? Hersey and Blanchard’s situational leadership model. Emphasizes the situational contingency of maturity, or “readiness,” of followers. Readiness is the extent to which people have the ability and willingness to accomplish a specific task.

What are the situational or contingency leadership approaches? Hersey and Blanchard’s situational leadership model — cont. Leader style and follower readiness. A telling style is best for low readiness. A selling style is best for low to moderate readiness. A participating style is best for moderate to high readiness. A delegating style is best for high readiness.

What are the situational or contingency leadership approaches? Substitutes for leadership. Sometimes hierarchical leadership makes essentially no difference. Substitutes for leadership make a leader’s influence either unnecessary or redundant.

What are the situational or contingency leadership approaches? Examples of leadership substitutes. Individuals’ experience, ability, and training. Individuals’ professional orientation. Highly structured/routine jobs. Intrinsically satisfying jobs. Cohesive work group.

What are the new leadership perspectives? Transactional leadership. Involves leader-follower exchanges necessary for achieving routine performance agreed upon between leaders and followers. Leader-follower exchanges involve: Use of contingent rewards. Active management by exception. Passive management by exception. Abdicating responsibilities and avoiding decisions.

What are the new leadership perspectives? Dimensions of transformational leadership. Charisma. Provides vision and a sense of mission; and instills pride, respect, and trust in followers. Inspiration. Communicates high expectations, uses symbols to focus efforts; expresses important purposes in simple ways.

What are the new leadership perspectives? Dimensions of transformational leadership — cont. Intellectual stimulation. Promotes intelligence, rationality, and careful problem solving. Individualized consideration. Provides personal attention, treats each employee individually, and coaches and advises.

new leadership perspectives Transformational leadership is likely to be strongest at the top-management level. Transformational leadership is found through the organization. Transformational leadership operates in combination with transactional leadership.

Leadership Relevance Power Bases Traits Behaviors Contingencies New Perspectives