1. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

2. 13 Chapter Leadership McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3. Learning Objectives After reading this chapter, you should be able to: Distinguish between management and leadership. Recognize how leaders use different power bases to exercise influence. Differentiate effective from ineffective leaders. Identify and apply the major theories of leadership. Identify organizational characteristics that determine the need for and importance of leadership. Strengthen the values and ethics of an organization through leadership. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

4. What Makes A Leader Effective? Ability to influence other people Has a vision – ideas or objectives that clarify to others where they should be headed “Sells” the vision by articulating it in a compelling and persuasive manner Encourages followers to establish appropriate implementation activities to support the accomplishment of the vision McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

5. LeadershipManagementCompareContrast McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

6. Practices Associated with Leadership by Managers Planning and organizing Problem solving Clarifying Informing Monitoring Motivating Consulting Recognizing Planning and organizing Problem solving Clarifying Informing Monitoring Motivating Consulting Recognizing Supporting Managing conflict and team building Networking Delegating Developing and mentoring Rewarding Supporting Managing conflict and team building Networking Delegating Developing and mentoring Rewarding McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

7. Power Coercive Power Reward Power Legitimate Power Expert Power Referent Power McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

8. Leadership: Traditional Explanations Person-based Theories Situational Theories Dispersed Theories Exchange Theories McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

9. Trait Theory Ambition and Energy Ambition Desire to Lead Desire Self-ConfidenceSelf-Confidence Honesty and Integrity Honesty IntelligenceIntelligence “Can-Do”Attitude“Can-Do”Attitude McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

10. Behavioral Theories Ohio State Employee-OrientationEmployee-Orientation Production-OrientationProduction-Orientation University of Michigan Michigan Initiating Structure ConsiderationConsideration McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

11. The Managerial Grid Concern for Production 123456789 1 2 34 5 6 7 89 Concern for People (1,9) (1,1) (5,5) (9,9) (9,1) McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

12. Findings of the Fiedler Model Category Leader-Member Leader-Member Relations Relations Task Structure Task Structure Position Power Position PowerIGoodHighStrongIIGoodHighWeakIIIGoodLowStrongIVGoodHighWeakVPoorHighStrongVIPoorHighWeakVIIPoorLowStrongVIIIPoorLowWeak Good Poor Performance Relationship-Oriented Task-Oriented FavorableModerateUnfavorable McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

13. The Path-Goal Framework EnvironmentalContingenciesEnvironmentalContingencies OutcomesOutcomesLeaderBehaviorLeaderBehavior SubordinateContingenciesSubordinateContingencies McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

14. Dispersed Theories Substitute Leadership:attempts to identify workplace characteristics that can substitute for leadership or neutralize efforts made by a leader Self-Leadership: leadership that stresses the individual responsibility of employees to develop their own work priorities aligned with organizational goals McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

15. Characteristics of Traditional and Self-Managing Behaviors: Traditional Leader BehaviorsSelf-Managing Leader Behaviors Organization – Structures own and subordinates work Encourages self-reward Domination – Restricts or limits the discretion of individuals or groups Encourages self-observation Production – Sets standards for task performance Encourages self-goal setting Recognition – Expresses approval or disapproval of behavior Encourages self-criticism Integration – Promotes group cohesion and reduces group conflict Encourages self-rehearsal Communication – Provides, seeks, and exchanges information with group members Acts as a role model by exhibiting appropriate behavior Fosters the development of a culture that nourishes and supports self-leadership McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

16. Exchange Theories Transactional Leadership: leaders who use legitimate, coercive, or reward powers to elicit obedience and attempt to instill in followers the ability to question standard modes of operation Transformational Leadership: leaders who revitalize organizations by instilling in followers the ability to question standard modes of operation Authentic leadership: An approach that emphasizes the importance of a positive directive force, particularly in an environment of increasing complexity, change, and uncertainty McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

17. Characteristics of Transactional and Transformational Leaders Transactional Leader Contingent reward Management by exception (active) Management by exception (passive) Laissez-Faire Transactional Leader Contingent reward Management by exception (active) Management by exception (passive) Laissez-Faire Transformational Leader Charisma Inspiration Intellectual stimulation Individualized consideration Transformational Leader Charisma Inspiration Intellectual stimulation Individualized consideration McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

18. Applications of Management Perspectives — For the Manager Managers should identify the theories that best fit them and their situations:  Some situations call for a strong person to guide the organization through change  Other situations may call for the dispersed leadership  Uncertainties and difficult times may best match authentic leadership Both management and leadership skills can be positive for employees and the organization; they will also bode well for your own career. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

19. Applications of Management Perspectives — For Managing Teams Effective teams have a shared vision and a common purpose that comes from leaders. Leadership may come from inside the team itself. The increasing prevalence of empowerment and self-leadership underscores the importance of team members understanding and developing leadership skills. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

20. Applications of Management Perspectives — For Individuals Employees are more likely to succeed if they can manage themselves without relying on others to motivate them and define their tasks. Employees can become self-leaders by:  Finding opportunities in their work environment.  Showing initiative.  Encouraging others to do their best.  Generating enthusiasm for the tasks at hand. Individuals can apply these leadership theories to the work environments and improve performance, as well as their potential for advancement. McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.