2. Learning Outcomes Define leadership, power and authority
Discuss leadership as it relates to management
Explain leadership attitudes

3. Learning Outcomes
4. Describe the differences between a Theory X and Theory Y manager.
5. Explain the differences between transactional, transformational and charismatic leadership styles.
6. Identify strategies for effectively managing corporate culture.

4. Power, Authority and Leadership
A measure of a person’s potential to get others to do what he or she wants them to do
Also to avoid being forced by others to do what he or she does not want to do

5. Power, Authority and Leadership
Sources of Power
Organizational
Ability to reward or punish
Comes from position
Personal
Expert: skills, knowledge
Referent: personal characteristics

6. Power, Authority and Leadership
The right to issue directives and expend resources
Related to power but is narrower in scope
Function of position

7. Power, Authority and Leadership
A person can have power without formal authority
Authority decreases if coercive power and reward power decreases

8. Leadership
The ability to influence people to willingly follow Informal leader: combine referent and expert power

9. Leadership vs. Management
Not the same, but not entirely different
Leadership means creating a vision of the future and enlisting support from employees
Management is the process of planning, organizing, staffing, motivating and controlling through formal authority

10. Leader Attitudes Douglas McGregor Theory X Theory Y
Authoritarian style of leadership
Theory Y
Democratic or laissez-faire style of leadership
Self-fulfilling prophecy
The idea that you get what you expect
If manager’s expectations are high, they may get better results; if expectations are low, productivity is likely to be low

11. Classifying Leader Types
Study leadership as traits or behaviors
Trait theory
Refers to the characteristics the leader possesses
Research is not consistent
Behaviors refer to what the leader does

12. Leadership Styles Autocratic Laissez-faire Democratic
Makes most of the decisions for the group
Laissez-faire
Allows people within the group to make all of the decisions
Democratic
Guides and encourages the group to make decisions

13. Ohio State Studies Study to determine what a successful leader does
Created the Leader Behavior Description Questionnaire
Questionnaire created based on this question
Shows that consideration (showing concern) and initiating structure (directing group toward goals) were the two most important behaviors
Leaders who score high on consideration have happier employees
Relationship between consideration and leader effectiveness depends on the type of group

14. University of Michigan Studies
Tried to discover principles that contributed to productivity of group and member satisfaction
The manager characteristics of a high producing group:
General rather than close supervision
Employees have some authority and responsibility
Managers spend more time supervising
Employee-oriented rather than production- oriented

15. More Leadership Studies: Renesis Likert Study
Four styles of leadership
Exploitative authoritative
Benevolent authoritative
Consultative
Participative

16. Managerial Grid Developed by Robert Blake and Jane Mouton
Ratings from a questionnaire are based on level of concern of employee and concern for production
Identified the following styles:
Authority-obedience
Country club management
Team management
Impoverished management

17. Contingency Approach: Fred Fiedler
The study of use of different styles in different situations
Task- or relationship-oriented leader
Considerations in knowing which style to use
Leader member relations: degree that others trust and respect the leader
Task structure: how structured is the job task
Position power: influence associated with the job

18. Path-Goal Theory of Leadership
Attempts to define the relationships between a leader’s behavior and the subordinates’ performance and work activities
Leader’s behavior falls into types:
Role classification leadership
Supportive leadership
Participative leadership
Autocratic leadership
Each leadership behavior results in different levels of performance and satisfaction

19. Situational Leadership Theory: Paul Henry & Kenneth Blanchard
Maturity of followers should be a consideration in leadership style
The amount of structure should be related to the amount of experience the employee has

20. Classifying Leader Types
Transactional
Leaders tell employees what to do, take corrective action if they don’t do it
Transformational
Cultivating employee acceptance of the group mission
Encouragement
Inspiration

21. Classifying Leader Types
Charismatic
Leaders and followers develop a relationship based on personality of leader
Usually involves heroic feats on the part of the leader

22. Lessons from Leadership Studies
The selection process can’t be developed to accurately predict successful leaders
Complications: changing nature of managerial roles
Most leadership training assumes 1 best way to lead
In reality, leadership is situational
Range of techniques are needed

23. Managing Corporate Culture
Culture definition: The set of important understandings that members of a community share in common
Corporate culture: The way things are done, often unspoken/written

24. Culture Components History Environment Staffing
The way things have always been done
Environment
The mission and goals created and how imbedded they are into the way things are done
Staffing
The values and personalities of those who are hired influence culture
How do people “fit”

25. Culture Components Entry socialization Strong and weak cultures
A new employee is most likely to challenge the culture
Refers to how well a new employee is accepting of the culture
Strong and weak cultures
A strong culture is clearly defined
In a weak culture, individuals act in ways that are inconsistent with the company values

26. Corporate Culture Characteristics of corporate culture
Individual autonomy
Structure
Support
Identification
Performance reward
Conflict tolerance
Risk tolerance

27. Types of Cultures Tough person, macho culture
Individualists who take high risks and get quick feedback
Not much cooperation
Don’t learn from mistakes
Competition

28. Types of Cultures Work hard, play hard culture
Activity is key to success
Rewards accrue to persistence and ability to find a need and fill it
Value volume and people who are outgoing thrive

29. Types of Cultures Bet your company culture
Requires big-stakes decisions
Lots of time passes before results are known
Pressure to make the right decision always present

30. Types of Cultures Process culture Subcultures
Low risk with little feedback
Employees focus on how things are done rather than outcomes
Subcultures
Exist in every organization
Global companies have a variety of subcultures

31. Cultural Change Takes 6-15 years Change is needed if:
Organization has strong values that do not fit in the changing environment
Competitive industry
Organization is mediocre
If the company is joining the ranks of a very large company
The organization is small but growing rapidly
Time and money involved in changing culture