Read “When to stand on your head and other tips from the top”, p The leader’s life – what’s it like? Create an adjective list: Are leaders sometimes overwhelmed with information? How do you handle information overload? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Chapter Learning Objectives After studying this chapter you should be able to: Describe the nature of leadership and relate leadership to management. Discuss and evaluate the three generic approaches to leadership – traits, behaviors, situations. Identify and describe a major situational approaches to leadership. Describe three emerging approaches to leadership. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Nature of Leadership People who can influence the behaviors of others without having to rely on force. People who are accepted as leaders by others. Process: what leaders actually do. Use noncoercive influence to shape the group’s or organization’s goals. Motivate others’ behavior toward goals. Help to define organizational culture. Property: who leaders are. The set of characteristics attributed to individuals perceived to be leaders. Who is a LEADER to you personally? Why? What’s the difference between LEADERSHIP And MANAGEMENT? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Distinctions Between Management and Leadership Activity Management Establishing direction and vision for the organization Creating an agenda Planning and budgeting, allocating resources Aligning people through communications and actions that provide direction Developing a human network for achieving the agenda Organizing and staffing, structuring and monitoring implementation Motivating and inspiring by satisfying needs Executing plans Controlling and problem solving Produces useful change and new approaches to challenges Outcomes Produces predictability and order and attains results © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Distinctions between Management and Leadership Table 11.1 Distinctions between Management and Leadership Activity Management Leadership Creating an agenda Planning and budgeting: Establishing detailed steps and timetables for achieving needed results; allocating the resources necessary to make those needed results happen Establishing direction: Developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision Developing a human network for achieving the agenda Organizing and staffing: Establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation Aligning people: Communicating the direction by words and deeds to everyone whose cooperation may be needed to influence the creation of teams and coalitions that understand the visions and strategies and accept their validity Executing plans Controlling and problem solving: Monitoring results versus planning in some detail, identifying deviations, and then planning and organizing to solve these problems Motivating and inspiring: Energizing people to overcome major political, bureaucratic, and resource barriers by satisfying very basic, but often unfulfilled, human needs Outcomes Produces a degree of predictability and order and has the potential to produce consistently major results expected by various stakeholders (for example, for customers, always being on time; or, for stockholders, being on budget) Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (for example, new products that customers want, or new approaches to labor relations that help make a firm more competitive) © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Management vs. Leadership The major differences between the leader and the manager relate to their source of power and level of compliance. Management Power: Comes from organizational structure. Promotes stability, order, and problem solving within the structure. Leadership Power: Comes from personal sources, such as personal interests, goals, and values. Promotes vision, creativity, and change.

Types of Power in Organizations Legitimate Reward Coercive Expert Referent © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Power is the ability to affect the behavior of others. Power and Leadership Power is the ability to affect the behavior of others. Legitimate power Power granted through the organizational hierarchy. Reward power The power to give or withhold rewards. Coercive power The capability to force compliance by means of psychological, emotional, or physical threat. Referent power The personal power that accrues to someone based on identification, imitation, loyalty, or charisma. Expert power Power derived from the possession of information or expertise. Which types of power are related to your POSITION? Which types of power are PERSONAL? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Consequences of Power Commitment Compliance Resistance Reward Power Legitimate Power Coercive Power Expert Referent Resistance Compliance Sources of Power Consequences of Power

What form of power?

What form of power?

What form of power?

What form of power?

What form of power?

Management Challenge Question How would you rank the effectiveness of the forms of power that are used by managers when their subordinates are the same age as you are now? Which type of power is most effective? Why? Which type of power is the least effective? Why? What does your ranking reveal about how the use of power by managers is changing (or must change) in today’s organization? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Generic Approaches to Leadership Leadership Traits Approach Assumed that a basic set of personal traits that differentiated leaders from nonleaders could be used to identify and predict who would become leaders. Could not establish empirical relationships between traits and persons regarded as leaders. Leadership Behaviors Approach Assumed that effective leaders somehow behaved differently from ineffective leaders. Was intended to develop a fuller understanding of leadership behaviors. Situational Approach © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Leadership Traits Physical characteristics Energy Physical stamina Physical characteristics Energy Physical stamina Personality Self-confidence Honesty and integrity Enthusiasm Desire to lead Independence Work-related characteristics Achievement drive, desire to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Social background Education Mobility Intelligence and ability Judgment, cognitive ability Knowledge Judgment, decisiveness Social characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomatic

Approaches to Leadership Job-centered behavior Employee-centered behavior Initiating-structure behavior Consideration behavior Leadership Behaviors Studies Michigan Studies Ohio State Studies © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Michigan Studies (Rensis Likert) Identified two forms of leader behavior Job-centered behavior Managers who pay close attention to subordinates’ work, explain work procedures, and are keenly interested in performance. Employee-centered behavior Managers who focus on the development of cohesive work groups and employee satisfaction. The two forms of leader behaviors were considered to be at opposite ends of the same continuum. Can you really be only one or the other? Job- centered? Or employee centered? Do you know people who are one or the other? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Ohio State Studies Identified two basic leadership styles that can be exhibited simultaneously: Initiating-structure behavior The leader defines leader-subordinate role expectations, formalizes communications, and sets working agenda. Consideration behavior The leader shows concern for subordinates and attempts to establish a friendly and supportive climate. Initial assumption was that the most effective leaders exhibit high levels of both behaviors. Can people really be BOTH? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Blake and Mouton’s Managerial Grid FIGURE 11.1 The Managerial Grid Blake and Mouton’s Managerial Grid What two behaviors are on the axes? What style of Management did they conclude was BEST leadership? Were their conclusions correct? So…..what’s the BEST style of leadership? © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Situational Approaches to Leadership Assumptions: Appropriate leader behavior varies from one situation to another. Situational factors that determine appropriate leader behavior can be identified. Situational Theories of Leadership: Least preferred coworker theory Path-goal theory Decision tree approach Leader-member exchange approach Hersey and Blanchard’s Situational Leadership © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Hersey and Blanchard’s Situational Theory Hersey and Blanchard’s Situational Theory A contingency approach to leadership that links the leader’s behavioral style with the task readiness of subordinates. Levels of readiness: Low = Telling Moderate = Selling High = Participating Very high = Delegating © 2006 by South-Western, a division of Thomson Learning. All rights reserved.

© 2006 by South-Western, a division of Thomson Learning © 2006 by South-Western, a division of Thomson Learning. All rights reserved.

Related Approaches to Leadership Substitutes for Leadership A concept that identifies situations in which leader behavior is neutralized or replaced by characteristics of subordinates, the task, and the organization. Characteristics that Substitute for Leadership Subordinate Task Organization Ability Experience Need for independence Professional orientation Indifference towards organizational goals Routineness The availability of feedback Intrinsic satisfaction Formalization Group cohesion Inflexibility A rigid reward structure © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Charismatic Leadership An interpersonal attraction that inspires support and acceptance, is an individual characteristic of a leader. Charismatics Are more successful than noncharismatic persons. Are self-confident leaders Have a firm conviction in their beliefs and ideals Possess a strong need to influence people. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Charismatic Leadership (cont’d) Charismatic leaders must be able to: Envision the future, set high expectations, and model behaviors consistent with those expectations. Energize others through a demonstration of excitement, personal confidence, and patterns of success. Enable others by supporting them, by empathizing with them, and by expressing confidence in them. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Transformational Leadership Goes beyond ordinary expectations by: transmitting a sense of mission stimulating learning inspiring new ways of thinking © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Keys to Successful Leadership Trusting in subordinates Keeping cool Being an expert Simplifying things Inviting dissent Encouraging risk Developing a vision Successful Leadership © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Future of Leadership Strategic Leadership Cross-Cultural Leadership Ethical Leadership Emerging Approaches to Leadership © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Emerging Approaches to Leadership Strategic Leadership Depends on top management’s capabilities: To understand the complexities of both the organization and its environment. To lead change in the organization in order to achieve and maintain a superior alignment between the organization and its environment. Cross-Cultural Leadership The capability to provide purpose and direction that encompasses both international and diversity-based cultural differences in the organization. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Emerging Approaches to Leadership (cont’d) Ethical Leadership Involves providing a strong corporate governance model to the organization that reflects the high ethical standards of its leaders. Requires holding those who lead the organization accountable for their actions and the consequences of their actions. © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Political Behavior in Organizations The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes. Inducement Creation of an obligation Coercion Impression management Persuasion Common Political Behaviors © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Why does Leadership matter? Why do organizations need Leadership? How do we get Leadership? How do we become Leaders? Is LEADERSHIP a job title? Can you develop LEADERSHIP without a formal job title? What sources of power should you use to do so?