1. 12-
Bateman Snell
Management
Competing in the New Era
5th
Edition

2. Part Four Chapter 12 - Leadership Chapter Outline Vision
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Part Four
Chapter 12 - Leadership
Chapter Outline
Vision
Leading and Managing
Leading and Following
Power and Leadership
Traditional Approaches to Understanding Leadership
Contemporary Perspectives on Leadership
Developing Your Leadership Skills

3. Learning Objectives After studying Chapter 12, you will know:
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Learning Objectives
After studying Chapter 12, you will know:
what it means to be a leader
how a good vision helps you be a better leader
how to understand and use power
the personal traits and skills of effective leaders
the behaviors that will make you a better leader
what it means to be a charismatic and transformational leader
how to further your own leadership development

4. 12-
Vision
Vision
a mental image of a possible and desirable future state of the organization
having a vision and communicating it to others are essential components of great leadership
the best visions are both:
ideal - communicates a standard of excellence and clear choice of positive values
unique - communicates and inspires pride in being different from other organizations
can exist throughout all organizational levels
visions can be inappropriate

5. 12-
Leading And Managing
Ability to lead effectively sets excellent managers apart from average ones
managers deal with ongoing organizational activities
planning and budgeting routines, structuring the organization
leadership includes orchestrating organizational change
creating a vision for the firm and inspiring people to attain it
management and leadership are both vitally important
supervisory leadership - provides guidance, support, and corrective feedback for day-to-day activities of work unit members
strategic leadership - gives purpose and meaning to organizations

6. 12-
Leading And Following
Organizations succeed or fail because of how well followers follow
effective followers:
are capable of independent thinking
are actively committed to organizational goals
are enthusiastic about ideas and purposes beyond their own self interest
master skills that are useful to the organization
hold performance standards that are higher than required

7. Power And Leadership Power Sources of power
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Power And Leadership
Power
ability to influence other people
Sources of power
legitimate power - leader has organizational authority
reward power - leader has control over valued rewards
coercive power - leader has control over punishments
referent power - leader has personal characteristics that appeal to others and make them desirous of the leader’s approval
expert power - leader has knowledge that others feel will be of benefit to them

8. Sources Of Power Power Authority Control over Expertise rewards
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Sources Of Power
Authority
Expertise
Control over
rewards
Power
Appealing
personal
characteristics
Control over
punishments

9. Traditional Approaches To Understanding Leadership
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Traditional Approaches To Understanding Leadership
Leader traits
trait approach - focussed on individual leaders to determine the personal characteristics that great leaders share
characteristics that distinguish effective leaders
drive - characteristics that reflect a high level of effort
leadership motivation - desire to lead
integrity - actions correspond to words
self-confidence - expectation that one is able to overcome obstacles and make good decisions in the face of uncertainty
knowledge of the business - ability to interpret information
ability to perceive the needs of others and to adjust one’s behavior accordingly

10. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Leader behaviors
behavioral approach - sought to identify what behaviors good leaders exhibit
Task performance - leader’s efforts to ensure that the work unit reaches its goals
focus on work speed, quality and quantity of output, and rules
Group maintenance - ensure the satisfaction of group members
develop and maintain harmonious work relationships
Leader-Member Exchange (LMX) theory - focuses on the leader’s behavior toward individuals
maintenance behaviors

11. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Leader behaviors (cont.)
Participation in decision making - leader behaviors that managers perform in involving their employees in making decisions
autocratic leadership - makes decisions and then announces them to the group
democratic leadership - solicits input from others
uses consensus or majority vote to make the final choice

12. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Leader behaviors (cont.)
The effects of leader behavior
decision styles - characteristics of the situation, leader, and the follower determine the appropriate decision-making style
laissez-faire - leadership philosophy characterized by an absence of managerial decision making
performance and maintenance behavior - are independent of each other
Ohio State studies - grievances and turnover
were lower when supervisor was high on maintenance behavior
were higher when supervisor was high on task performance behavior
when leader must be high on performance-oriented behavior, s/he should also be maintenance-oriented

13. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Leader behaviors (cont.)
The effects of leader behavior (cont.)
performance and maintenance behavior (cont.)
Michigan studies - most effective managers were task oriented
effective managers also were relationship oriented
taken together, Ohio State and Michigan research suggested that the ideal leader is always both performance and maintenance oriented
Blake and Mouton’s Leadership Grid
described a wide range of leadership styles
recommended a 9,9 style that is high on concern for people and high on concern for production
ignores the effect of the situation

14. Concern for Production
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The Leadership Grid
Concern for People
High
Low
Country Club
Management
(1,9)
Team
Management
(9,9)
Middle of the Road
Management
(5,5)
Impoverished
Management
(1,1)
Authority-
Compliance
(9,1)
Concern for Production
High
Low

15. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Situational approaches to leadership
leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation
requires the leader to first analyze the situation and then decide what to do
Tannenbaum and Schmidt - three factors must be considered
forces in the manager
forces in the subordinate
forces in the situation
arguments remain valid today

16. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
Vroom-Yetton-Jago model - focuses on how leaders go about making decisions
seven situational factors used to analyze problems
each based on a problem attribute
scored as either high or low
answering a series of questions about the problem attributes leads one to 14 possible endpoints of the analysis
each endpoint recommends one of five decision styles
decision styles indicate that there are several shades of participation
use of model ensures that important situational factors are considered

17. Vroom’s Situational Factors For Problem Analysis
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Vroom’s Situational Factors For Problem Analysis
DECISION SIGNIFICANCE
IMPORTANCE OF
COMMITMENT
LEADER’S EXPERTISE
LIKELIHOOD OF
GROUP SUPPORT FOR
OBJECTIVES
GROUP EXPERTISE
TEAM COMPETENCE
The significance of the decision to the success
of the project or organization
The importance of team members’ commitment
to the decision
Your knowledge or expertise in relation to this
problem
The likelihood that the team would commit itself
to a decision that you might make on your own
The degree to which the team supports the
organization’s objectives at stake in this problem
Team members’ knowledge or expertise in
relation to this problem
The ability of team members to work together
in solving problems

18. Figure 12.3 The Vroom-Yetton-Jago model
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Figure The Vroom-Yetton-Jago model
Team Competence
Group Expertise
Group Support
Decision Significance
Importance of Commitment
Leader Expertise
Likelihood of Commitment

19. Figure 12.3 The Vroom-Yetton-Jago model
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Figure The Vroom-Yetton-Jago model
Instructions: The Matrix operates like a funnel. You start at the left with a specific decisions problem in mind. The column headings denote situational factors which may or may not be present in that problem. You progress by selecting High or Low (H or L) for each relevant situational factor. Proceed down from the funnel, judging only those situational factors for which a judgment is called for, until you reach the recommended process.

20. Vroom’s Leader Decision Styles
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Vroom’s Leader Decision Styles
Decide
Consult
Individually
Consult Group
Facilitate
Delegate 5 10 3 7
Area of freedom
for subordinates
Use of authority
by manager

21. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
Path-goal theory - concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals
factors that determine appropriate leader behavior include:
personal characteristics of the followers
authoritarianism
locus of control
ability
environmental pressures with which followers must cope
people’s tasks
formal authority system of the organization
primary work group

22. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
Path-goal theory (cont.)
four pertinent leadership behaviors
directive leadership
supportive leadership
participative leadership
achievement-oriented leadership
theory suggests that the leader should:
make the path to work goals easier to travel by providing coaching and direction
reduce frustrating barriers to goal attainment
increase opportunities for personal satisfaction by increasing payoffs to people for achieving performance goals

23. The Path-Goal Framework
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The Path-Goal Framework
Characteristics
of followers
Environmental
factors
Appropriateness of
Directive,
Supportive,
Participative, or
Achievement
leader behaviors
Followers’
goals and
performance
determine
leading to

24. Traditional Approaches To Understanding Leadership (cont.)
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Traditional Approaches To Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
Substitutes for leadership - factors in the workplace that can exert the same influence on employees that leaders would provide
certain follower, task, and organizational factors are substitutes for task performance-oriented and group maintenance-oriented leader behaviors
practical implication of this idea
create situations in which substitutes for leadership operate
leader will require less time in attempts to influence people

25. Contemporary Perspectives On Leadership
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Contemporary Perspectives On Leadership
Charismatic leadership
dominant and exceptionally self-confident, and have a strong conviction in the moral righteousness of their beliefs
articulates ideological goals
inspire their followers trust, confidence, acceptance, obedience, emotional involvement, affection, admiration, and higher performance

26. Contemporary Perspectives On Leadership (cont.)
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Contemporary Perspectives On Leadership (cont.)
Transactional leadership
traditional management through business transactions in which leaders use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered
dispassionate leadership that does not inspire people to focus on the interests of the organization
Transformational leadership
moves beyond transactional leadership
a leader who transforms a vision into reality and motivates people to transcend their personal interests for the good of the group

27. Contemporary Perspectives On Leadership (cont.)
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Contemporary Perspectives On Leadership (cont.)
Transformational leadership (cont.)
Generating excitement - three ways
they are charismatic
provide individualized attention
they are intellectually stimulating
Skills and strategies - rely on four
have a vision
communicate their vision
build trust
have a positive self-regard
Transforming leaders - training available to stimulate transformational leadership

28. Contemporary Perspectives On Leadership (cont.)
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Contemporary Perspectives On Leadership (cont.)
Post-heroic leadership
even great top executives can’t solve all problems on their own
effective leadership must permeate the organization
leader must spread leadership abilities throughout the firm
make heroes out of those who figure out what needs to be done and then do it
A note on courage
need courage to:
create and execute a vision
take reasonable risks

29. Classic Contingency Models Of Leadership
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Classic Contingency Models Of Leadership
Fiedler’s contingency model
leader effectiveness depends on two factors
the personal style of the leader
task-motivated - primary emphasis on completing the task
low Least Preferred Coworker (LPC)
relationship-motivated - emphasizes maintaining good interpersonal relationships
high LPC
degree to which the situation gives the leader power, control, and influence over the situation
different situations dictate different leadership styles

30. Fiedler’s Analysis Of Situations
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Fiedler’s Analysis Of Situations
Poor
Good
Leader-
member
relations
Structured
Unstructured
Task
structure
High
Low
Leader
position
power
Favorable
for leader
Unfavorable
Task-
motivated
Relation-
ship-
Most
effective
leader
in the
situation

31. Classic Contingency Models Of Leadership (cont.)
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Classic Contingency Models Of Leadership (cont.)
Hersey and Blanchard’s situational theory
manager should consider an employee’s psychological and job maturity
job maturity - level of the follower’s skills and technical knowledge relative to the task performed
psychological maturity - follower’s self-confidence and self-respect
determines the degree to which task performance or maintenance behaviors are important
maintenance behaviors are not important with followers of low or high levels of maturity
performance behaviors important for followers with low maturity