1. MGT100 Organization and Management
Topic VIII

2. Leadership and Managing People
Content
Leadership and trust
Human resource management
Summary
Refer to chapter 6 and chapter 11

3. Leadership and Trust Managers versus leaders
Theoretical background of leadership
Contemporary leadership issues
Leadership: the ability to influence people toward the attainment of organizational goals. Refer textbook p310

4. Managers Compared to Leaders
Are appointed to their position
Are appointed or emerge from within a work group
Can influence people only to the extent of the formal authority of their position
Can influence other people and have managerial authority
Do not necessarily have the skills and capabilities to be leaders
Do not necessarily have the skills and capabilities to be managers
Name two historical figures; one who might be classified as a manager and the other as a leader.
Leadership is the process of influencing a group toward the achievement of goals.

5. Theoretical Background of Leadership
Trait theories of leadership
Behavioral theories of leadership
Contingency theories of leadership
Emerging Approaches to Leadership

6. Trait Theories of Leadership
Research focused on identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful
Later research on the leadership process identified six traits associated with successful leadership
Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and
Six traits of differentiate leadership from nonleadership: add an ‘extraversion’, refer to p311
Traits: distinguishing personal characteristics, such as intelligence, values, and appearance.

7. Behavioral Theories of Leadership
University of Iowa Studies
The Ohio State studies
The leadership dimensions of the university of Michigan studies
Two-dimensional leadership theory of the University of Texas studies
Refer to pp

8. Behavioral Theories of Leadership
The Managerial Grid
Appraises leadership styles using two dimensions
Concern for People
Concern for production
Places managerial styles in five categories
Impoverished management
Task management
Middle-of-the-road management
Country club management
Team management

9. Behavioral Theories of Leadership Managerial Grid
Refer to p314

10. Contingency Theories of Leadership
Fiedler model: LPC
The Path-Goal theory
The leader-participation model
The situational leadership

11. Contingency Theories of Leadership Fiedler Model
Assumptions
A certain leadership style should be most effective in different types of situations
Leaders do not readily change leadership styles
Matching the leader to the situation or changing the situation to make it favorable to the leader is required
Fiedler model: Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence

12. Contingency Theories of Leadership Findings of the Fiedler Model
Refer to p317
Least-preferred co-worker (LPC) questionnaire
Determines leadership style by measuring responses to 18 pairs of contrasting adjectives.
High score: a relationship-oriented leadership style
Low score: a task-oriented leadership style
Situational factors in matching leader to the situation:
Leader-member relations
Task structure
Position power

13. Contingency Theories of Leadership The Path-Goal theory
Environmental contingency factors:
Task structure
Formal authority
Work groups
Path-goal theory
Path-goal theory was developed by Robert House. In path-goal theory, a leader’s behaviour is acceptable to subordinates insofar as they view it as a source of either immediate or future satisfaction. Path-goal theory extracts key elements of both the Ohio State studies and the expectancy theory of motivation.
Key elements of path-goal theory
Motivational leadership The leader’s actions are motivational to the degree that they (1) make subordinate need-satisfaction contingent on effective performance and (2) provide the coaching, guidance, support, and rewards necessary for effective performance.
Four leadership behaviours The directive leader lets subordinates know what is expected of them, schedules work to be done, and give specific guidance as to how to accomplish tasks. The supportive leader is friendly and shows concern for the needs of subordinates. The participative leader consults with subordinates and uses their suggestions before making a decision. The achievement-oriented leader set challenging goals and expect subordinates to perform at their highest level. In contrast to Fiedler, House believes that leadership style is flexible.
Two classes of situational or contingency variables The leadership-outcome relationship is additionally moderated by situational factors. Those in the environment (task structure, formal authority system, work group) are outside of the control of the subordinate. Environmental factors determine the type of leader behaviour required if subordinate outcomes are to be maximised. Characteristics of the subordinate (locus of control, experience, and perceived ability) determine how the leader’s behaviour will be interpreted.
Leader behaviour:
Directive
Supportive
Participative
Achievement:
Outcomes:
Performance
Satisfaction
Subordinate contingency factors:
Locus of control
Experience
Perceived ability

14. Contingency Theories of Leadership The leader-participation model
Developed by Vroom and Yetton
Posits that leader behavior must be adjusted to reflect the task structure—whether it is routine, non-routine, or in between—based on a sequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation
Leadership theory that says it is a leader’s job to assist followers and to provide direction and support that are needed to attain goals
Refer to p318 exhibit 11-5
Contingency variables refer to p320

15. Contingency Theories of Leadership The situational leadership
Developed by Hersey and Blanchard
An appropriate leadership style is contingent on followers’ readiness using two leadership dimensions
Task behavior
Relationship behavior
Leaders evaluate subordinates and adopt an appropriate style
Hersey and Blanchard’s Situational Leadership Theory (SLT)
Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness.
Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.
Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.
Leaders must relinquish control over and contact with followers as they become more competent.

16. Contingency Theories of Leadership The situational leadership
Hersey and Blanchard’s Situational Leadership Theory (SLT)
Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions:
Telling: high task-low relationship leadership
Selling: high task-high relationship leadership
Participating: low task-high relationship leadership
Delegating: low task-low relationship leadership
Posits four stages follower readiness:
R1: followers are unable and unwilling
R2: followers are unable but willing
R3: followers are able but unwilling
R4: followers are able and willing

17. Emerging Approaches to Leadership
Charismatic leadership theory
Visionary leadership
Transactional leaders versus transformational leaders
Charismatic leadership refer to pp
An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways
Visionary leadership refer to pp
The ability to create and articulate a realistic, credible, attractive vision of the future that improves upon the present.

18. Emerging Approaches to Leadership
Transactional leaders
Guiding or motivating their followers in the direction of established goals by clarifying role and task requirements
Transformational leaders
Providing individualized consideration and intellectual stimulation, and possess charisma.
Transaction vs transformation refer to pp

19. Contemporary Leadership Issues
Team leadership
Gender differences and leadership
Leaders and power
Refer to pp
The effect of national culture on leadership
The effect of emotional intelligence on leadership

20. Team Leadership
Refer to pp

21. Gender Differences and Leadership
Research findings
Males and females use different styles
Women tend to adopt a more democratic or participative style unless in a male-dominated job
Women tend to use transformational leadership
Men tend to use transactional leadership

22. Gender Differences and Leadership

23. Leaders and Power Leadership power refers to the capacity
Power and authority
Leaders and Power
Leadership power refers to the capacity
of a leader to influence work actions or decisions
Because leadership is about the process of influence, we need to examine how leaders acquire power.
Power increases as one moves up the vertical hierarchy but may also increase by moving horizontally toward the power centre of the organisation.
Psychologists French and Raven identify five sources or bases of power:
Coercive power is based upon fear.
Reward power is based upon the ability to control resources others value.
Legitimate power is based upon one’s formal position in the hierarchy.
Expert power is based upon expertise, special skill, or knowledge.
Referent power is based upon identification with one who has desirable personal traits.
Span of control Classical writers refer to the number of subordinates managers can direct efficiently and effectively, usually about six. Contemporary writers advocate wider spans of control over better trained more independent subordinates.
Five Sources of Power
Choose which source of power would have the strongest long term influence. Explain your choice.
Coercive
Reward
Legitimate
Expert
Referent

24. Leaders and Power Managing Power Legitimate power:
The power a leader has as a result of his or her position
Coercive power:
The power a leader has to punish or control
Reward power:
The power to give positive benefits or rewards
Expert power:
The influence a leader can exert as a result of his or her expertise, skills, or knowledge.
Referent power:
The power of a leader that arises because of their desirable resources or admired personal traits

25. Human Resource Management
Definition
HRM activities
The role of HRM in effective management
Refer to chapter 6 and pay attention to issues on study guide

26. Summary
Effective managers are usually people who are successful leaders or are able to manage the leadership role in their organization
Developing successful leaders enhances worker and organizational performance, while ineffective leadership can be disastrous