1. Management, 7e Schermerhorn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc

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3. Schermerhorn - Chapter 133 Chapter 13 Leading  Planning ahead—study questions – What is the nature of leadership? –What are the important leadership traits and behaviors? –What are the contingency theories of leadership? –What are current issues in leadership development?

4. Schermerhorn - Chapter 134 What is the nature of leadership?  Leadership, vision, and visionary leadership –Leadership The process of inspiring others to work hard to accomplish important tasks. –Vision A future that one hopes to create or achieve in order to improve upon the present state of affairs. –Visionary leadership A leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully.

5. Schermerhorn - Chapter 135 What is the nature of leadership?  Meeting the challenges of visionary leadership: – Challenge the process – Show enthusiasm – Help others to act – Set the example – Celebrate achievements

6. Schermerhorn - Chapter 136 What is the nature of leadership?  Power –Ability to get someone else to do something you want or make things happen the way you want.  Sources of position power –Reward power –Coercive power –Legitimate power  Sources of personal power –Expert power –Referent power

7. Schermerhorn - Chapter 137 What is the nature of leadership?  Turning power into influence … – Successful leadership relies on acquiring and using all sources of power. – Use of reward power or legitimate power produces temporary compliance. – Use of coercive power produces, at best, temporary compliance accompanied by resistance. – Use of expert power or referent power generates commitment.

8. Schermerhorn - Chapter 138 What is the nature of leadership?  Turning power into influence –Keys to developing personal power: There is no substitute for expertise. Likable personal qualities are very important. Effort and hard work breed respect. Personal behavior must support expressed values.

9. Schermerhorn - Chapter 139 What is the nature of leadership?  Turning power into influence – Keys to developing position power: Centrality—establishing a broad network of contacts and getting involved in important information flows. Criticality—taking good care of others. Visibility—becoming known as an influential person.

10. Schermerhorn - Chapter 1310 What is the nature of leadership?  Acceptance theory of authority –For a leader to achieve influence, the other person must: Truly understand the directive. Feel capable of carrying out the directive. Believe the directive is in the organization’s best interests. Believe the directive is consistent with personal values.

11. Schermerhorn - Chapter 1311 What is the nature of leadership?  Leadership and empowerment –Empowerment The process through which managers enable and help others to gain power and achieve influence. –Effective leaders empower others by providing them with: Information Responsibility Authority Trust

12. Schermerhorn - Chapter 1312 What is the nature of leadership?  How leaders can empower others … –Involve others is selecting their work assignments and task methods. –Create an environment of cooperation, information sharing, discussion, and shared ownership of goals. –Encourage others to take initiative, make decisions, and use their knowledge. –Find out what others think and let them help design solutions. –Give others the freedom to put their ideas and solutions into practice. –Recognize successes and encourage high performance.

13. Schermerhorn - Chapter 1313 What are the important leadership traits and behaviors?  Traits that are important for leadership success: –Drive –Self-confidence –Creativity –Cognitive ability –Business knowledge –Motivation –Flexibility –Honesty and integrity

14. Schermerhorn - Chapter 1314 What are the important leadership traits and behaviors?  Task concerns –Plans and defines work to be done –Assigns task responsibilities –Sets clear work standards –Urges task completion –Monitors performance results  People concerns –Acts warm and supportive toward followers –Develops social rapport with followers –Respects the feelings of followers –Is sensitive to followers’ needs –Shows trust in followers

15. Schermerhorn - Chapter 1315 What are the important leadership traits and behaviors?  Blake and Mouton Leadership Grid  –Team management High task concern; high people concern –Authority-obedience management High task concern; low people concern –Country club management High people concern; low task concern –Impoverished management Low task concern; low people concern. –Middle of the road management Non-committal for both task concern and people concern

16. Schermerhorn - Chapter 1316 What are the contingency theories of leadership?  Fiedler’s contingency model –Good leadership depends on a match between leadership and situational demands. –Determining leadership style: Task-motivated leaders Relationship-motivated leaders –Diagnosing situational control: Quality of leader-member relations (good or poor) Degree of task structure (high or low) Amount of position power (strong or weak)

17. Schermerhorn - Chapter 1317 What are the contingency theories of leadership?  Fiedler’s contingency model –Matching leadership style and situational control: Task-oriented leaders are most successful in –Very favorable (high control) situations. –Very unfavorable (low control) situation. Relationship-oriented leaders are most successful in –Situations of moderate control.

18. Schermerhorn - Chapter 1318 What are the contingency theories of leadership?  Hersey-Blanchard situational leadership model –Leaders adjust their styles depending on the readiness of their followers to perform in a given situation. Readiness—how able, willing and confident followers are in performing tasks.

19. Schermerhorn - Chapter 1319 What are the contingency theories of leadership?  Hersey-Blanchard leadership styles –Delegating Low-task, low-relationship style Works best in high readiness-situations –Participating Low-task, high-relationship style Works best in low- to moderate-readiness situations

20. Schermerhorn - Chapter 1320 What are the contingency theories of leadership?  Hersey-Blanchard leadership styles – Selling High-task, high-relationship style Work best in moderate- to high-readiness situations –Telling High-task, low-relationship style Work best in low-readiness situations

21. Schermerhorn - Chapter 1321 What are the contingency theories of leadership?  House’s path-goal leadership theory – Effective leadership deals with the paths through which followers can achieve goals. – Leadership styles for dealing with path-goal relationships: Directive leadership Supportive leadership Achievement-oriented leadership Participative leadership

22. Schermerhorn - Chapter 1322 What are the contingency theories of leadership?  House’s path-goal leadership theory – Use directive leadership when job assignments are ambiguous. –Use supportive leadership when worker self- confidence is low. –Use participative leadership when performance incentives are poor. –Use achievement-oriented leadership when task challenge is insufficient.

23. Schermerhorn - Chapter 1323 What are the contingency theories of leadership?  Substitutes for leadership – Aspects of the work setting and the people involved that can reduce the need for a leader’s personal involvement. – Possible leadership substitutes: Subordinate characteristics Task characteristics Organizational characteristics

24. Schermerhorn - Chapter 1324 What are the contingency theories of leadership?  Vroom-Jago leader-participation theory –Helps leaders choose the method of decision making that best fits the nature of the problem situation. –Alternative decision-making methods Authority decision Consultative decision Group decision

25. Schermerhorn - Chapter 1325 What are the contingency theories of leadership?  Vroom-Jago leader-participation theory –Use group-oriented and participative decision- making methods when … The leader lacks sufficient information to solve a problem by himself/herself. The problem is unclear and help is needed to clarify the situation. Acceptance of the decision by others is important. Adequate time is available for true participation.

26. Schermerhorn - Chapter 1326 What are the contingency theories of leadership?  Vroom-Jago leader-participation theory –Use authority-oriented decision-making methods when … The leader has greater expertise to solve a problem. The leader is confident and capable of acting alone. Others are likely to accept the decision. Little or no time is available for discussion.

27. Schermerhorn - Chapter 1327 What are current issues in leadership development?  Charismatic leaders – Develop special leader-follower relationships and inspire others in extraordinary ways.  Transformational leadership –Someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments.  Transactional leadership –Someone who is methodical as a leader and keeps others focused on progressing toward goal accomplishment.

28. Schermerhorn - Chapter 1328 What are current issues in leadership development?  Characteristics of transformational leaders –Vision –Charisma –Symbolism –Empowerment –Intellectual stimulation –Integrity

29. Schermerhorn - Chapter 1329 What are current issues in leadership development?  Emotional intelligence – The ability of people to manage themselves and their relationships effectively. – Components of emotional intelligence: Self-awareness Self-regulation Motivation Empathy Social skill

30. Schermerhorn - Chapter 1330 What are current issues in leadership development?  Gender and leadership –Women tend to use interactive leadership. A style that shares qualities with transformational leadership. Behaviors. –Men tend to use transactional leadership. –Interactive leadership provides a good fit with the demands of a diverse workforce and the new workplace. –Future leadership success will depend on a person’s capacity to lead through positive relationships and empowerment.

31. Schermerhorn - Chapter 1331 What are current issues in leadership development?  Drucker’s “old-fashioned” leadership –Leadership is more than charisma; it is “good old-fashioned” hard work. –Essentials of “old-fashioned” leadership: Defining and establishing a sense of mission. Accepting leadership as responsibility rather than rank. Earning and keeping the trust of others.

32. Schermerhorn - Chapter 1332 What are current issues in leadership development?  Ethical aspects of leadership –Integrity … The leader’s honesty, credibility, and consistency in putting values into action. Crucial for transformational leadership and good old-fashioned leadership. –Moral obligation to awaken people’s potential. –Moral leaders instill high expectations and let others do their best.