What is Leadership? Organizational Leadership An interpersonal process that involves attempts to influence other people in attaining organizational goals Leadership behavior: Can be shown by anyone Is expected of most managers Is part of effective management

What is Leadership? Effective leadership Influence that assists an organization to meet its goals and perform successfully Effective leaders: Enable people to accomplish more than if there had been no such leadership Unlock other people’s potential

Leading and Managing: The Same or Different? Managers Adapted from Exhibit 9.1 Leaders Leaders and Managers Managing ought to involve most of the activities thought of as leading Organizations need their managers to incorporate leadership roles into their behavior

Does Leadership Differ Across National Cultures? Some leader attributes are universally viewed as being either positive or negative Some leader attributes are viewed as positive or negative depending on the culture No best way to lead Must take into account the characteristics of the leader, followers, and situation Adapted from Exhibit 9.2

Leadership and Power Power The capacity or ability to influence Power can: Lead to greater capacity to influence Be used to overcome resistance Be abused and lead to undesirable consequences Produce positive outcomes if used skillfully

Types of Power Position Power Personal Power Legitimate—How much authority does the organization give to your position? Reward—Are you able to give others the rewards they want? Coercive—Are you able to punish others or withhold rewards? Personal Power Expert—Do you have knowledge that others need? Referent—Do others respect you and want to be like you? Adapted from Exhibit 9.3

Four Key Issues in Using Power How much power should be used? Should power be shared? Which types of power should be used? How can power be put to use?

The Leadership Process and the Locus of Leadership Three leadership variables: The leader The situation The followers Locus of leadership: Where the three variables intersect Locus of Leadership

Traits of Effective Leadership Drive Achievement, ambition, energy, tenacity, initiative Emotional maturity Even tempered, calm under stress, unself-centered, nondefensive Motivation to Lead Desire to influence others, comfortable using power Honesty and Integrity Trustworthy, open, forthright Leader Self-confidence Set high goals for self and others, optimistic about overcoming obstacles (if taken to extreme, can lead to arrogance and sense of infallibility) Adapted from Exhibit 9.7

Charismatic Leadership Is a strong form of referent power Is based on individual inspirational qualities rather than formal power Generates followers who identify with charismatic leaders because of these exceptional qualities Is rare; very few people are considered truly “charismatic”

Leaders’ Skills TECHNICAL SKILLS Specialized knowledge INTERPERSONAL SKILLS Sensitivity, persuasiveness, empathy CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities EMOTIONAL INTELLIGENCE Self-awareness, self-regulation, motivation, empathy and social skill SOCIAL INTELLIGENCE Ability to “read” other people Adapted from Exhibit 9.9

Two fundamental types of leader behaviors Leaders’ Behaviors Two fundamental types of leader behaviors Task Behaviors Specifies roles and tasks Schedules work Sets performance standards Develops procedures People Behaviors Is friendly and supportive Shows trust and confidence in subordinates Shows concern for subordinates’ welfare Gives recognition to subordinates for accomplishments

Leadership Approaches Based on Leader’s Behavior BLAKE & MOUTON: MANAGERIAL GRID Best managers are both task- and people-oriented TRANSFORMATIONAL LEADERSHIP Leaders who inspire followers to make major changes or to achieve at very high levels TRANSACTIONAL LEADERSHIP Emphasizes the exchange of rewards for followers’ compliance

Managerial Grid Focuses on two leadership behaviors: concern for people and concern for results Leaders can be High in both Low in both In the middle on both High in one, low in the other Low High 9 8 7 6 5 4 3 2 1 Good Leaders Mediocre Leaders Concern for People Poor Leaders 1 2 3 4 5 6 7 8 9 Low High Concern for Results

Transformational Leadership Empower and coach followers Motivate followers to: Ignore self-interest Work for the larger good of the organization Achieve significant accomplishments Make major changes

Transactional Leadership Is more passive Emphasizes exchange or rewards or benefits for compliance with leader’s requests Appeals to followers’ self-interests to motivate their performance Routine changes

The Leadership Process and Followers’ Behaviors Important points about followers: They can impact a leader’s success They can affect the leader’s style and success They may be as informed as leaders and may share power with them Usually have lower formal authority Leaders are usually followers of someone else They have implicit leadership theories

Leadership Approaches Based on Follower’s Behavior HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP MODEL Focuses on followers’ “readiness” to engage in learning new tasks LEADER-MEMBER EXCHANGE (LMX) THEORY Focuses on types of relationships between a leader and a follower

Situational Leadership Model Leadership behaviors depend on “readiness” of followers Ability in a new task Willingness to undertake the new task Leadership behaviors Supportiveness (people orientation) Directiveness (task orientation)

Leader-Member Exchange Theory Quality of the leader-member relationship can influence behavior of subordinates Leader should build a strong, mutually beneficial relationship Relationship goes through stages: Stranger Acquaintance Maturity

Leader-Member Relationships stage Relationship Characteristics Stranger Acquaintance Maturity Relationship- building phase Quality of leader- member exchange Amounts of reciprocal Influence Focus of interest Role- Finding Low None Self Role- Making Medium Limited Role- Implementation High Almost Unlimited Team Time

The Situation Situational variables affecting leadership are: Tasks to be performed If task changes, leadership style changes Unstructured task done by experts  supportive leadership Structured task done by inexperienced people  directive leadership Organizational context Immediate work group + larger organization Organizational culture influences leadership style Also strategy, structure, HR practices, controls

Leadership Approaches Based on Situation FIEDLER: CONTINTENCY LEADERSHIP MODEL Focuses on type of leader and the degree of favorability of the situation HOUSE: PATH-GOAL THEORY Use leadership approach based on both subordinate skills and situation

Leadership Contingency Theory Premise: Leadership effectiveness depends on 1) favorability of situation and 2) type of leader FAVORABLE SITUATION Good subordinate relationships Highly structured task High amount of position power UNFAVORABLE SITUATION Poor subordinate relationships Unstructured task Leader lacks position power TASK-ORIENTED LEADERS Do best when the situation is either: Highly favorable, or Highly unfavorable PEOPLE-ORIENTED LEADERS Do best when the situation is either: Moderately favorable, or Moderately unfavorable

Path-Goal Theory Leader’s job is to increase subordinate satisfaction and effort Assumes that: One leadership approach will work better in some task situations than others Leaders can modify their styles to suit the situation Two basic leadership behaviors: Supportive Directive

Path-Goal Theory IF AND IF AND The task is: Frustrating, boring, stressful, structured, and routine Supportive Leadership Style (Person oriented) AND Subordinates are: Highly experienced and competent Goal (i.e., increased performance) IF The task is: Interesting but ambiguous, nonstressful, unstructured, varied Directive Leadership Style (Task oriented) AND Subordinates are: inexperienced Adapted from Exhibit 9.14

Substitutes for Leadership