1 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition. 14 F O U R T E E N Leadership in Organizational Settings C H A P T E R

2 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Emerging View of Leadership “A great leader is one who has vision, perseverance and the capacity to inspire others,” says Cynthia Trudell, the Canadian executive who is president of Brunswick Corp.’s Sea Ray Group CP/Nina Long

3 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition What is Leadership? Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members CP/Nina Long

4 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition LeadershipPerspectives CompetencyPerspective BehaviourPerspective ContingencyPerspective ImplicitLeadershipPerspective TransformationalPerspective Perspectives of Leadership

5 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Integrity Drive Truthfulness Translates words into deeds Inner motivation to pursue goals Need for achievement, quest to learn Leadership Motivation High need for socialized power to accomplish team’s or firm’s goals Emotional Intelligence Perceiving, assimilating, understanding, and regulating emotions Seven Leadership Competencies more

6 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Intelligence Above average cognitive ability Can analyze problems/opportunities Knowledge of the Business Familiar with business environment Aids intuitive decision making Self-Confidence High self-efficacy regariing ability to lead others Seven Leadership Competencies (con’t)

7 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Competency Perspective Limitations Leadership potential, not performance –Still need to develop leader skills from these competencies Implies a universal approach –But some competencies might not be valuable in all situations Some traits are subjective –Supports implicit leadership theory

8 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Leader Behavioural Perspective People-oriented behaviours –Showing mutual trust and respect –Concern for employee needs –Desire to look out for employee welfare Task-oriented behaviours –Assign specific tasks –Ensure employees follow rules –Set “stretch goals” to achieve performance capacity

9 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Path-Goal Leadership Styles Directive –Task-oriented behaviours Supportive –People-oriented behaviours Participative –Encouraging employee involvement Achievement-oriented –Using goal setting and positive self- fulfilling prophecy

10 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Path-Goal Leadership Model EmployeeContingencies EnvironmentalContingencies LeaderBehaviours DirectiveDirective SupportiveSupportive ParticipativeParticipative Achievement- orientedAchievement- oriented LeaderEffectiveness Employee motivationEmployee motivation Employee satisfactionEmployee satisfaction Leader acceptanceLeader acceptance

11 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition DirectiveSupportiveParticipativeAchievementEmployeeContingencies Path-Goal Contingencies Skill/Experience lowlowhighhigh Locus of Control externalexternalinternalinternal Task Structure nonroutineroutinenonroutine? Team Dynamics –ve norms low cohesion+ve norms?EnvironmentalContingencies DirectiveSupportiveParticipativeAchievement

12 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Other Contingency Leadership Theories Situational Leadership Model (Hersey/Blanchard) –Effective leaders vary style with follower “readiness” –Leader styles – telling, selling, participating, and delegating Fiedler’s Contingency Model –Leadership style is stable --based on personality –Best style depends on situational control -- leader- member relations, task structure, position power

13 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Leader Substitutes at Pursue Assoc. Fortunato Restagno (front) and his associates use leadership substitutes more than direct leadership to get their work done. These substitutes likely include common values, rewards, training, and guidance from coworkers. Kitchener-Waterloo Record

14 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Leadership Substitutes Contingencies that limit a leader’s influence or make a particular leadership style unnecessary. Examples: –Training and experience replace task-oriented leadership –Cohesive team replaces supportive leadership –Self-leadership replaces achievement-oriented leadership Kitchener-Waterloo Record

15 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Transformational Leadership at Suncor Rick George, CEO, is a transformational leader. Through his vision and actions, he transformed Suncor Energy into one of the leaders in Canada ’ s oil industry. Courtesy of Suncor Energy Inc.

16 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Transformational v. Transactional Leaders Transformational leaders –Leading -- changing the organization to fit environment –Change agents Transactional leaders –Managing -- linking job performance to rewards –Ensure employees have necessary resources –Apply contingency leadership Courtesy of Suncor Energy Inc.

17 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition TransformationalLeadership Communicating the Vision Modelling Creating a Strategic Vision BuildingCommitment Transformational Leadership Elements

18 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Implicit Leadership Perspective Attributing Leadership StereotypingLeadership Need for SituationalControl Implicit Leadership Perspective

19 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Cultural Issues in Leadership Societal cultural values and practices affect leaders: –Shape the leader’s values and norms –Influence decisions and actions Some features of leadership are universal, others differ across cultures –“Charismatic visionary” seems to be universal –Participative leadership works better in some cultures than others

20 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Gender Issues in Leadership Male and female leaders have similar task- and people-oriented leadership. Participative leadership style is used more often by female leaders.

21 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition Evaluating Female Leaders Past evidence – women rated less favourably than equivalent male leaders due to stereotyping Recent evidence – women rated more favourably than men, particularly on emerging leadership styles (coaching, teamwork)

22 Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.McShane 5th Canadian Edition. 14 F O U R T E E N Leadership in Organizational Settings C H A P T E R