1. Introduction to Management
Welcome to MT140
Introduction to Management
Unit 5 Seminar – Leading

2. Agenda General Questions and Announcements Introduction
What People Want from Leaders / Q & A
Charismatic versus Transformational Leaders / Q & A
Leadership Traits /Q & A
Conclusion of Seminar 2

3. Unit 5 Objectives During this unit we will:
Designate conclusions to management issues
Discuss the difference between managing and leading
Identify aspects of employee motivation

4. Key Concepts
Leading is one of the four primary functions of management.
Effective leaders are talented in combining strategy and interpersonal skills to formulate plans and implement strategies that create positive results.
There are key similarities and differences between leading and managing.
Managers can employ practical, effective techniques for increasing people’s effort and performance.

5. Scenario:
Steve Jobs went back to work at Apple after a long absence in June of 2009.
What kind of leadership does he provide his company?
What differences does he make in the success of the company?
See his presentation at Mac world conference in 60 seconds!

6. What People Want From Their Leaders
Vision: A mental image of a possible and desirable future state of the organization.
Leadership:
Supervisory Leadership: Behavior that provides day-to-day guidance, support, and corrective feedback.
Strategic Leadership: Gives purpose and meaning to organizations by anticipating and envisioning a viable future for the organization and working with others to initiate changes that create such a future.

7. What People Want From Their Leaders (Continued)
Power: Five Sources:
1) Legitimate Power: right and authority
2) Reward Power: controls rewards
3) Coercive Power: punishment control
4) Referent Power: motivational-
1.One in which the leader has the right, or the authority, to tell others what to do. Employees are obligated to comply with legitimate orders.2. One in which the leader has control of valued rewards. People comply with the leader’s wishes to receive these rewards.3. One in which the leader has control over punishments. 4. One in which the leader possesses personal characteristics that motivate others to want to follow this leader or gain this leader’s approval.

8. What People Want From Their Leaders (Continued)
Power: Five Sources:
Expert Power: One in which the leader has certain expertise or knowledge that influences others to follow in order to gain this knowledge or expertise.

9. Charismatic vs. Transformational Leaders
Charismatic Leaders: Leaders who are dominant, self-confident, convinced of the righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers.
Transformational Leaders: Leaders who motivate people to transcend their personal interests for the good of the group.
Transactional Leaders: Leaders who manage through their transactions, using their legitimate reward, and coercive powers to give commands and exchange rewards for services rendered.

10. Leadership Traits
Drive: Refers to a high level of effort, high need for achievement, energy, tenacity, and persistence.
Motivation: Refers to the desire to lead. Related to extroversion and a high need for power. This influences the leader to attempt to influence others and retains the leader’s interest in leadership.
Integrity: Refers to the correspondence of actions with words. It denotes honesty and credibility. These traits inspire confidence in others.
Self-Confidence: Refers to the ability to overcome setbacks and defeats, to make decisions under uncertainty and to instill confidence in others.
Knowledge of Business: Refers to the ability to accurately interpret vast quantities of information relative to the business at hand.

11. Any questions ?

12. “A leader lives in each of us”
LEADERSHIP
“A leader lives in each of us”
What are the foundations for effective leadership?
What are current issues and directions in leadership development?
We will see that leadership and management, although not the same, have a lot in common.

13. LEADERSHIP Foundations For Effective Leadership
Leadership is one of the four functions of management.
Leadership relies on use of position power and personal power.
Leadership traits and styles can influence leadership effectiveness.
Fiedler’s contingency model matches leadership styles with situational differences.
House’s path-goal theory matches leadership styles with task and follower characteristics.
Leadership traits and styles are a lot like effective manager’s traits and styles. However manager’s tend to rely more on position power.

14. LEADERSHIP Foundations For Effective Leadership
Leadership is one of the four functions of management.
It is true that leadership is one of the 4 functions of management but that does not mean that all managers are effective leaders.

15. LEADERSHIP Foundations For Effective Leadership
Power
the ability to get others to do what you want them to do
Reward Power
The capacity to offer something of value as a means of influencing other people
Coercive Power
The capacity to punish or withhold positive outcomes as a means of influencing other people.
Legitimate Power
The capacity to influence other people by virtue of formal authority or the rights of office.
Expert Power
The capacity to influence other people by virtue of specialized knowledge.
Referent Power
The capacity to influence other people because of their desire to identify personally with you
Reward power and Coercive power, the authority to reward and punish, are a part of legitimate power.

16. LEADERSHIP Foundations For Effective Leadership
Managerial Power = Position Power + Personal Power
Power of the POSITION:
Based on things managers can offer to others.
Rewards: "If you do what I ask, I'll give you a reward."
Coercion: "If you don't do what I ask, I'll punish you."
Legitimacy: "Because I am the boss; you must do as I ask."
Power of the PERSON:
Based on how managers are viewed by others.
Expertise—as a source of special knowledge and
information.
Reference—as a person with whom others like
to identify.
Position power should be used sparingly. Personal power, though more difficult to obtain, is more effective in the long term.

17. FOUNDATIONS FOR EFFECTIVE LEADERSHIP Leadership Styles
The recurring pattern of behaviors exhibited by a leader
Autocratic Style
Acts in unilateral command and control fashion
Human Relation Style
Emphasizes people over tasks
Democratic Style
Encourages participation with an emphasis on both task accomplishments and development of people
Lassize-faire Style
Is low on both tasks and people
A manager that is low on risks and people is unlikely to do much for the organization.

18. FOUNDATIONS FOR EFFECTIVE LEADERSHIP Leadership Styles
Traits Often Shared by Effective Leaders
Drive
Successful leaders have high energy, display initiative, and are tenacious.
Self-confidence
Successful leaders trust themselves and have confidence in their abilities.
Creativity
Successful leaders are creative and original in their thinking.
Cognitive ability
Successful leaders have the intelligence to integrate and interpret information.
Business knowledge
Successful leaders know their industry and its technical foundations.
Motivation
Successful leaders enjoy influencing others to achieve shared goals.
Flexibility
Successful leaders adapt to fit the needs of followers and demands of situations.
Honesty and integrity
Successful leaders are trustworthy; they are honest, predictable, and dependable.
Of course, not all effective leaders have all these traits but, then again, the more of these traits a leader has, the more effective he/she is likely to be.

19. FOUNDATIONS FOR EFFECTIVE LEADERSHIP Leadership Styles
Fiedler’s Contingency Theory
Suggests that the best leadership style depends on the situation
Fiedler not only believed but conducted studies to show that effective leadership style is situational. His Task-motivated leader would be similar to the classical/mechanistic style of management while his Relationship-motivated style would be similar to the humanistic/organic management style.

20. FOUNDATIONS FOR EFFECTIVE LEADERSHIP Leadership Styles
In the end, Fiddler's Contingency Theory can be summed up as “When it comes to the most effective leadership style, it all depends on the situation.”
Fiedler believes that leadership success requires the right style–situation match. He classifies leadership styles as either task-motivated or relationship motivated, and views them as strongly rooted in our individual personalities. He describes situations according to the leader’s position power, quality of leader–member relations, and amount of task structure. In situations that are most favorable and unfavorable for leaders, his research shows the task-motivated style as a best fit. In more intermediate situations, the relationship-motivated style provides the best fit.

21. FOUNDATIONS FOR EFFECTIVE LEADERSHIP Leadership Styles
House’s Path Goal Theory
Leaders are most effective when they help followers move along paths through which they can achieve both professional and personal goals
House’s Four Path-Goal Leadership Styles
1. “Directive leader” lets others know what is expected; gives
directions, maintains standards.
2. “Supportive leader” makes work more pleasant; treats
others as equals, acts friendly, shows concern.
3. “Achievement-oriented leader” sets challenging goals;
expects high performance, shows confidence.
4. “Participative leader” involves others in decision making;
asks for and uses suggestions.
Each person has different professional and personal needs. An effective leader needs to recognize this and to adjust his style depending on the situation and the individual that he/she is leading.

22. LEADERSHIP Trends In Leadership Development MODULE 16.2
• Transformational leadership inspires enthusiasm and extraordinary performance.
• Emotionally intelligent leadership handles emotions and relationships well.
• Interactive leadership emphasizes communication, listening, and participation.
• Moral leadership builds trust from a foundation of personal integrity.
• Servant leadership is follower centered and empowering.
Just as there are many types of management, there are many types of leaders.

23. Transformational Leadership
Research has shown that transformational leadership leads to improved performance in the industrial, military, business, and government environments and transforms organizations to meet these new demands (Avolio and Bass, 1991; Lowe, Kroeck, and Sivasubramanium, 1996; Lowe and Gardner, 2000).

24. Full Range of Leadership Model
Full Range Leadership model that examines a full range of leadership styles from the passive avoidant leadership style represented by laissez-faire leadership to the fully engaged transformational leadership style.

25. Full Range of Leadership
Laissez Faire
Transactional
Transformational

26. Transformational Leader
The transformational leader is one who elevates and aligns their followers’ goals and objectives with their own, while articulating a positive vision of the future
Burns went on to say that transformational leadership seeks to satisfy higher needs in terms of Maslow’s (1954) need hierarchy. Burns (1978) theory of transformational leadership placed a strong emphasis on followers’ needs, values, and morals.

27. Transactional Leadership
Burns (1978) stated that transactional leadership is the exchange of one thing for another comprising the majority of leadership relationship in organizations.

28. Full Range of Leadership Model
Bass (1985) proposed a model for the relationship between transformational and transactional leadership and discovered the augmenting effects of transformational leadership on transactional leadership.

29. Bass discovered that transformational leadership augments transactional leadership in predicting the effects on associates’ satisfaction and other outcome measures. When used in combination transformational leadership improved on the results of transactional leadership in these studies. This augmentation effect is accountable for variances in the ratings of performance that is greater than accounted for by transactional leadership alone (Avolio and Bass, 2004).

30. Augmentation
Waldman, Bass, and Yammarino (1988) confirmed this augmentation effect when outcome was unit performance. In addition, a greater amount of Extra Effort, Effectiveness, and Satisfaction is possible from employees by augmenting transactional with transformational leadership (Bass and Avolio, 2004).

31. Augmentation
He discovered that transformational leadership augments transactional leadership in predicting the effects on associates’ satisfaction and other outcome measures. When used in combination transformational leadership improved on the results of transactional leadership in these studies. This augmentation effect is accountable for variances in the ratings of performance that is greater than accounted for by transactional leadership alone (Avolio and Bass, 2004).

32. LEADERSHIP Trends In Leadership Development
Leadership surveys of U.S. workers report:
• 39% believe leaders most often act in best interest of organization.
• 22% see leaders as ready to admit mistakes.
• 46% believe their organizations give them freedom to do their jobs.
• 25% of women and 16% of men believe their organizations pick the best people for leadership.
• 33% of managers are perceived as “strong leaders.”
By this data, workers do not have a very high opinion of their managers / leaders and its true. Employee confidence in management has been steadily decreasing for more than a decade.

33. LEADERSHIP Trends In Leadership Development MODULE 16.2
Charismatic Leader
develops special leader–follower relationships and inspires followers in extraordinary ways.
Transactional Leader
directs the efforts of others through tasks, rewards, and structures.
Transformational Leader
Inspires Enthusiasm and Extraordinary Performance
Transactional leaders are generally good at short term crisis or stable situations. Transformational leaders tend to build long term effective organizations.

34. LEADERSHIP Trends In Leadership Development
Characteristics of a Transformational Leader
Vision Has ideas and a clear sense of direction; communicates them to others; develops excitement about accomplishing shared “dreams.”
Charisma Uses power of personal reference and emotion to arouse others’ enthusiasm, faith, loyalty, pride, and trust in themselves.
Symbolism Identifies “heroes” and holds spontaneous and planned ceremonies to celebrate excellence and high achievement.
Empowerment Helps others grow and develop by removing performance obstacles, sharing responsibilities, and delegating truly challenging work.
Intellectual stimulation Gains the involvement of others by creating awareness of problems and stirring their imaginations.
Integrity Is honest and credible; acts consistently and out of personal conviction; follows through on commitments.
Notice the similarity between effective managers and transformational leaders.

35. LEADERSHIP Trends In Leadership Development
Interactive Leadership
is strong on motivating, communicating, listening, and relating positively to others.
Emotional Intelligence (EI)
is the ability to manage our emotions in social relationships.
Emotional intelligence is thought by some to be more important IQ.

36. LEADERSHIP Trends In Leadership Development
Peter Drucker – One of the most influential management consultants of the 20th century.
Peter Drucker’s “Good Old-Fashioned Leadership”
Good leaders have integrity; they mean what they say, earning
and keeping the trust of followers.
Good leaders define and establish a sense of mission; they set
goals, priorities and standards.
Good leaders accept leadership as responsibility, not a
rank; they surround themselves with talented people.
Peter Drucker also had good old fashion common sense.

37. MORE DRUCKER • Management is about human beings.
Why Peter Drucker’s leadership advice still matters
When Peter Drucker died at the age of 95 in the year 2005, the former CEO of GE, Jack Welch, said: “The world knows he was the greatest management thinker of the last century." That could be an understatement. Drucker was renowned worldwide for his many books, consultancies, newspaper columns, and sage advice on matters of management, organizations, business and society, and executive leadership. Here’s a sampler of his enduring advice:
• Management is about human beings.
• Don’t ever think or say “I.” Think and say “We.”
• Attracting and holding talent have become two of the central tasks of management.
• Every decision is risky.
• Levels of management should be kept to the minimum.
• Effective organizations exist not to satisfy themselves but to fill a customer need.
• I’m not going to give you any answers I’m going to give you the questions you should ask.
These statements cover the essence of what management is supposed to be.

38. LEADERSHIP Trends In Leadership Development
Moral Leadership
Builds trust from a foundation of personal integrity
Ethical Leadership
Has integrity and appears to others as “good” and “right” by moral standards
Integrity
In leadership is honesty, credibility and consistency in putting values into action
Servant Leadership
Means serving others, helping them use their talents to help organizations best serve society
Empowerment
Gives employees job freedom and power to influence affairs in the organization
Given the corporate fraud of recent years, it is obvious that some very large corporations have not followed these trends.

39. See you next week!
After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

40. Thank You for Joining Me This Evening!
Good Night All!