MGT100 Organization and Management Topic VIII

Leadership and Managing People Content Leadership and trust Human resource management Summary Refer to chapter 6 and chapter 11

Leadership and Trust Managers versus leaders Theoretical background of leadership Contemporary leadership issues Leadership: the ability to influence people toward the attainment of organizational goals. Refer textbook p310

Managers Compared to Leaders Are appointed to their position Are appointed or emerge from within a work group Can influence people only to the extent of the formal authority of their position Can influence other people and have managerial authority Do not necessarily have the skills and capabilities to be leaders Do not necessarily have the skills and capabilities to be managers Name two historical figures; one who might be classified as a manager and the other as a leader. Leadership is the process of influencing a group toward the achievement of goals.

Theoretical Background of Leadership Trait theories of leadership Behavioral theories of leadership Contingency theories of leadership Emerging Approaches to Leadership

Trait Theories of Leadership Research focused on identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful Later research on the leadership process identified six traits associated with successful leadership Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and Six traits of differentiate leadership from nonleadership: add an ‘extraversion’, refer to p311 Traits: distinguishing personal characteristics, such as intelligence, values, and appearance.

Behavioral Theories of Leadership University of Iowa Studies The Ohio State studies The leadership dimensions of the university of Michigan studies Two-dimensional leadership theory of the University of Texas studies Refer to pp311-315

Behavioral Theories of Leadership The Managerial Grid Appraises leadership styles using two dimensions Concern for People Concern for production Places managerial styles in five categories Impoverished management Task management Middle-of-the-road management Country club management Team management

Behavioral Theories of Leadership Managerial Grid Refer to p314

Contingency Theories of Leadership Fiedler model: LPC The Path-Goal theory The leader-participation model The situational leadership

Contingency Theories of Leadership Fiedler Model Assumptions A certain leadership style should be most effective in different types of situations Leaders do not readily change leadership styles Matching the leader to the situation or changing the situation to make it favorable to the leader is required Fiedler model: Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence

Contingency Theories of Leadership Findings of the Fiedler Model Refer to p317 Least-preferred co-worker (LPC) questionnaire Determines leadership style by measuring responses to 18 pairs of contrasting adjectives. High score: a relationship-oriented leadership style Low score: a task-oriented leadership style Situational factors in matching leader to the situation: Leader-member relations Task structure Position power

Contingency Theories of Leadership The Path-Goal theory Environmental contingency factors: Task structure Formal authority Work groups Path-goal theory Path-goal theory was developed by Robert House. In path-goal theory, a leader’s behaviour is acceptable to subordinates insofar as they view it as a source of either immediate or future satisfaction. Path-goal theory extracts key elements of both the Ohio State studies and the expectancy theory of motivation. Key elements of path-goal theory Motivational leadership The leader’s actions are motivational to the degree that they (1) make subordinate need-satisfaction contingent on effective performance and (2) provide the coaching, guidance, support, and rewards necessary for effective performance. Four leadership behaviours The directive leader lets subordinates know what is expected of them, schedules work to be done, and give specific guidance as to how to accomplish tasks. The supportive leader is friendly and shows concern for the needs of subordinates. The participative leader consults with subordinates and uses their suggestions before making a decision. The achievement-oriented leader set challenging goals and expect subordinates to perform at their highest level. In contrast to Fiedler, House believes that leadership style is flexible. Two classes of situational or contingency variables The leadership-outcome relationship is additionally moderated by situational factors. Those in the environment (task structure, formal authority system, work group) are outside of the control of the subordinate. Environmental factors determine the type of leader behaviour required if subordinate outcomes are to be maximised. Characteristics of the subordinate (locus of control, experience, and perceived ability) determine how the leader’s behaviour will be interpreted. Leader behaviour: Directive Supportive Participative Achievement: Outcomes: Performance Satisfaction Subordinate contingency factors: Locus of control Experience Perceived ability

Contingency Theories of Leadership The leader-participation model Developed by Vroom and Yetton Posits that leader behavior must be adjusted to reflect the task structure—whether it is routine, non-routine, or in between—based on a sequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation Leadership theory that says it is a leader’s job to assist followers and to provide direction and support that are needed to attain goals Refer to p318 exhibit 11-5 Contingency variables refer to p320

Contingency Theories of Leadership The situational leadership Developed by Hersey and Blanchard An appropriate leadership style is contingent on followers’ readiness using two leadership dimensions Task behavior Relationship behavior Leaders evaluate subordinates and adopt an appropriate style Hersey and Blanchard’s Situational Leadership Theory (SLT) Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness. Acceptance: leadership effectiveness depends on whether followers accept or reject a leader. Readiness: the extent to which followers have the ability and willingness to accomplish a specific task. Leaders must relinquish control over and contact with followers as they become more competent.

Contingency Theories of Leadership The situational leadership Hersey and Blanchard’s Situational Leadership Theory (SLT) Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions: Telling: high task-low relationship leadership Selling: high task-high relationship leadership Participating: low task-high relationship leadership Delegating: low task-low relationship leadership Posits four stages follower readiness: R1: followers are unable and unwilling R2: followers are unable but willing R3: followers are able but unwilling R4: followers are able and willing

Emerging Approaches to Leadership Charismatic leadership theory Visionary leadership Transactional leaders versus transformational leaders Charismatic leadership refer to pp321-322 An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways Visionary leadership refer to pp323-324 The ability to create and articulate a realistic, credible, attractive vision of the future that improves upon the present.

Emerging Approaches to Leadership Transactional leaders Guiding or motivating their followers in the direction of established goals by clarifying role and task requirements Transformational leaders Providing individualized consideration and intellectual stimulation, and possess charisma. Transaction vs transformation refer to pp324-325

Contemporary Leadership Issues Team leadership Gender differences and leadership Leaders and power Refer to pp328-329 The effect of national culture on leadership The effect of emotional intelligence on leadership

Team Leadership Refer to pp325-327

Gender Differences and Leadership Research findings Males and females use different styles Women tend to adopt a more democratic or participative style unless in a male-dominated job Women tend to use transformational leadership Men tend to use transactional leadership

Gender Differences and Leadership

Leaders and Power Leadership power refers to the capacity Power and authority Leaders and Power Leadership power refers to the capacity of a leader to influence work actions or decisions Because leadership is about the process of influence, we need to examine how leaders acquire power. Power increases as one moves up the vertical hierarchy but may also increase by moving horizontally toward the power centre of the organisation. Psychologists French and Raven identify five sources or bases of power: Coercive power is based upon fear. Reward power is based upon the ability to control resources others value. Legitimate power is based upon one’s formal position in the hierarchy. Expert power is based upon expertise, special skill, or knowledge. Referent power is based upon identification with one who has desirable personal traits. Span of control Classical writers refer to the number of subordinates managers can direct efficiently and effectively, usually about six. Contemporary writers advocate wider spans of control over better trained more independent subordinates. Five Sources of Power Choose which source of power would have the strongest long term influence. Explain your choice. Coercive Reward Legitimate Expert Referent

Leaders and Power Managing Power Legitimate power: The power a leader has as a result of his or her position Coercive power: The power a leader has to punish or control Reward power: The power to give positive benefits or rewards Expert power: The influence a leader can exert as a result of his or her expertise, skills, or knowledge. Referent power: The power of a leader that arises because of their desirable resources or admired personal traits

Human Resource Management Definition HRM activities The role of HRM in effective management Refer to chapter 6 and pay attention to issues on study guide

Summary Effective managers are usually people who are successful leaders or are able to manage the leadership role in their organization Developing successful leaders enhances worker and organizational performance, while ineffective leadership can be disastrous