1. LEADERSHIP AND DECISION-MAKING9
LEADERSHIP AND DECISION-MAKING
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2. After reading this chapter, you should be able to:
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to:
Define leadership and distinguish it from management.
Summarize early approaches to the study of leadership.
Discuss the concept of situational approaches to leadership.
Describe transformational and charismatic perspectives on leadership.
Identify and discuss leadership substitutes and neutralizers.
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3. L E A R N I N G O B J E C T I V E S (cont’d)
After reading this chapter, you should be able to:
Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.
Describe strategic leadership, ethical leadership, and virtual leadership.
Relate leadership to decision making and discuss both rational and behavioral perspectives on decision making
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4. What’s in It for Me? Why does understanding leadership matter to you?
By mastering the material in this chapter, you’ll benefit in two ways:
You’ll better understand how you can more effectively function as a leader
You’ll have more insight into how your manager or boss strives to motivate you through his or her own leadership
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5. The Nature of Leadership
What Is Leadership?
The processes and behaviors used by someone, such as a manager, to motivate, inspire, and influence the behaviors of others.
Are Leadership and Management the Same?
No. A person can be a manager, a leader, both, or neither.
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6. TABLE 9.1 Kotter’s Distinctions Between Management and Leadership
Source: The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from A Force for Change: How Leadership Differs from Management, by John P. Kotter, Copyright 1990 by John P. Kotter, Inc.
© 2007 Prentice Hall, Inc. All rights reserved.

7. Early Approaches to Leadership
Trait Approaches to Leadership
Focused on identifying essential leadership traits
Intelligence, dominance, self-confidence, energy, activity (versus passivity), and knowledge about the job
Physical traits (height, body shape, handwriting)
Yielded inconsistent results
Recent research has focused on a limited set of traits
Emotional intelligence, mental intelligence, drive, motivation, honesty and integrity, self-confidence, knowledge of the business, and charisma
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8. Early Approaches to Leadership (cont’d)
Behavioral Approaches to Leadership
Focused on the behaviors of effective leaders versus ineffective leaders
Assumed that the behaviors of effective leaders would be the same across all situations
Task-focused leader behaviors related to increasing the performance of employees
Employee-focused leader behaviors related to job satisfaction, motivation, and well-being of employees
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9. The Situational Approach to Leadership
Assumes that appropriate leader behavior varies from one situation to another
Continuum of leadership behavior
Considers influences of the characteristics of the leader, subordinates, and the situation
Continuum ranges from having the leader make decisions alone (i.e., task-focused) to having employees make decisions with only minimal guidance from the leader
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10. FIGURE 9.1 The Leadership Continuum
Source: Harvard Business Review. An exhibit from “How to Choose a Leadership Pattern” by Robert Tannenbaum and Warren Schmidt (May-June 1973). Copyright 1973 by the President and Fellows of Harvard College; all rights reserved.
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11. Leadership Through the Eyes of Followers
Transformational Leadership
The set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change effectively
Transactional Leadership
Basic management involving routine, regimented activities (leading during a period of stability)
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12. Leadership Through the Eyes of Followers (cont’d)
Charisma
Charisma: A form of interpersonal attraction that inspires support and acceptance
Charismatic Leadership
Influence based on the leader’s personal charisma
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13. Special Issues in Leadership
Leadership Substitutes
Individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance
Leadership Neutralizers
Various factors that neutralize leadership behaviors or render them ineffective
The norms of strongly cohesive groups
Elements of the job
Organizational factors
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14. TABLE 9.2 Leadership Substitutes and Neutralizers
Individual Factors
Individual professionalism
Individual ability, knowledge, and motivation
Individual experience and training
Indifference to rewards
Job Factors
Structured/automated
Highly controlled
Intrinsically satisfying
Embedded feedback
Organization Factors
Explicit plans and goals
Rigid rules and procedures
Rigid reward system not tied to performance
Physical distance between supervisor and subordinate
Group Factors
Group performance norms
High level of group cohesiveness
Group interdependence
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15. The Changing Nature of Leadership
Leader as Coaches
From directive overseer to mentor
Gender
Understanding the differences and dynamics in the approaches of women and men to leadership
Cross-Cultural Leadership
The effects of an individual’s native culture on his or her approach to leadership when functioning in another culture
Collectivism versus individualism
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16. Emerging Issues in Leadership
Strategic Leadership
Leader’s ability to understand the complexities of the organization and its environment and lead change so as to enhance organizational competitiveness
Ethical Leadership
Leader’s ability to maintain high ethical standards for personal conduct, unfailingly exhibit ethical behavior, and hold others to the same standards
Virtual Leadership
Leading through effective communication and maintaining collaborative relationships at a distance
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17. Leadership, Management, and Decision Making
Rational Decision Making
Recognizing and defining the decision situation
Identifying alternatives
Evaluating alternatives
Selecting the best alternative
Implementing the chosen alternative
Following up and evaluating the results
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18. Behavioral Aspects of Decision Making
Political Forces in Decision Making
Coalition: An informal alliance of individuals or groups formed to achieve a common goal
Intuition
An innate belief about something, often without conscious consideration
Escalation of Commitment
Staying with a chosen course of action even when it appears to have been wrong
Risk Propensity
The extent to which a decision maker is willing to gamble when making a decision
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19. K E Y T E R M S behavioral approach to leadership
charismatic leadership
coalition
decision making
employee-focused leader behavior
escalation of commitment
ethical leadership
intuition
leadership
leadership neutralizers
leadership substitutes
risk propensity
situational approach to leadership
strategic leadership
task-focused leader behavior
trait approach to leadership
transactional leadership
transformational leadership
virtual leadership
© 2007 Prentice Hall, Inc. All rights reserved.