Chapter 14 Leadership © 2015 Cengage Learning MGMT7

© 2015 Cengage Learning 14-1 explain what leadership is 14-2 describe who leaders are and what effective leaders do 14-3 explain Fiedler’s contingency theory 14-4 describe how path-goal theory works 14-5 explain the normative decision theory 14-6 explain how visionary leadership (i.e., charismatic or transformational leadership) helps leaders achieve strategic leadership

Leaders vs. Managers © 2015 Cengage Learning Doing the right thing “What should we be doing?” Vision, mission, goals, objectives Challenge the status quo Long-term view Expand people’s options and choices Inspire and motivate people to find their own solutions Concerned with ends, what gets done Doing things right “How can we do what we’re already doing better?” Productivity and efficiency Preservers of status quo Short-term view Limit others’ choices Sole problems so that others can do their work More concerned with means, how things get done 14-1

Leadership Traits Trait theory – effective leaders possess a similar set of traits or characteristics Leaders are different from followers in: – drive – desire to lead – honest/integrity – self-confidence – emotional stability – cognitive ability – knowledge of the business © 2015 Cengage Learning 14-2

Leadership Behaviors Initiating structure Consideration © 2015 Cengage Learning 14-2

Blake/Mouton Leadership Grid 14-2 © 2015 Cengage Learning

Fiedler’s Contingency Theory In order to maximize work group performance, leaders must be matched to the right leadership situation. Leaders are effective when the work group they lead performs well. Leaders are generally unable to change their leadership styles, and they will be more effective when their styles are matched to the proper situation. The favorableness of a situation permits the leader to influence the behavior of group members. © 2015 Cengage Learning 14-3

Least Preferred Coworker Leadership style = the way that leaders generally behave toward their followers. Leadership styles are tied to leaders’ underlying needs and personalities. Relationship-oriented Task-oriented © 2015 Cengage Learning 14-3

Situational Favorableness © 2015 Cengage Learning The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. Leader-member relations Task structure Position power 14-3

Situational Favorableness © 2015 Cengage Learning 14-3

Matching Leadership Styles to Situations 14-3 © 2015 Cengage Learning

Leaders and Situations Fiedler assumes leaders to be incapable of changing their leadership styles. The key − matching leaders to situations… …or teaching leaders how to change situational favorableness © 2015 Cengage Learning 14-3

Path-Goal Theory Leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment. © 2015 Cengage Learning 14-4

Path-Goal Theory 14-4 © 2015 Cengage Learning

Leadership Styles Directive Supportive Participative Achievement-oriented © 2015 Cengage Learning 14-4

Subordinate Contingencies Perceived ability Experience Locus of control – internals vs. externals © 2015 Cengage Learning 14-4

Environmental Contingencies Task structure Formal authority system Primary work group © 2015 Cengage Learning 14-4

Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership 14-4 © 2015 Cengage Learning

Normative Decision Theory Helps leaders decide how much employee participation (from none to letting employees make the entire decision) should be used when making decisions. © 2015 Cengage Learning 14-5

Normative Theory, Decisions Styles, and Levels of Employee Participation 14-5 © 2015 Cengage Learning

Normative Theory Decision Rules 14-5 © 2015 Cengage Learning

Normative Decision Theory Tree for Determining the Level of Participation in Decision Making 14-5 © 2015 Cengage Learning

Visionary Leadership Creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting. © 2015 Cengage Learning 14-6

Charismatic Leadership The behavioral tendencies and personal characteristics of leaders that create an exceptionally strong relationship with followers. Articulate a clear vision for the future that is based on strongly held values or morals Model those values by acting in a way consistent with the vision Communicate high performance expectations to followers Display confidence in followers’ abilities to achieve the vision © 2015 Cengage Learning 14-6

Ethical and Unethical Charismatics 14-6 © 2015 Cengage Learning

Transformational Leadership Generates awareness and acceptance of a group’s purpose and mission and gets employees to see beyond their own needs and self interests for the good of the group. © 2015 Cengage Learning 14-6

Components of Transformational Leadership Charismatic leadership or idealized influence Inspirational motivation Intellectual stimulation Individualized consideration © 2015 Cengage Learning 14-6

Transactional Leadership Based on an exchange process in which followers are rewarded for good performance and punished for poor performance. © 2015 Cengage Learning 14-6

Camp Bow Wow 1.Does Camp Bow Wow CEO Heidi Ganahl possess qualities associated with contemporary leadership? 2.In what way is Heidi Ganahl’s leadership charismatic and visionary? Give examples. 3.Where does Heidi Ganahl’s leadership fall on the Leader-ship Grid discussed in the chapter? Explain. © 2015 Cengage Learning