1. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 1 Leadership MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University

2. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 2 learning objectives 1. Discuss leadership traits, skills, and behaviors 2. Differentiate between management and leadership 3. Describe the five sources of power leaders may possess 4. Differentiate between positive and negative motivation 5. Describe the three decision-making styles used by leaders

3. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 3 learning objectives (continued) 6. Explain the two primary approaches leaders can take: task centered and people centered 7. Describe the three theories of situational leadership 8. Discuss the three challenges facing leaders

4. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 4 Leading. Establishing values, culture, and climate. Defining a mission. Identifying core competencies. Scanning environments. Sensing the need for change. Creating a vision for the future. Enlisting cooperation and support for the vision. Keeping people and processes focused on satisfying various customers. Unleashing the full potential from human resources

5. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 5 Those Who Practice Leadership…DirectCounsel Inspire others Persuade Guide Coach

6. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 6 Leadership and Influence Leadership The process of influencing individuals and groups to set and achieve goals Influence The power to sway people to one’s will or views

7. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 7 Leadership Variables The leader Those being led The circumstances and situations they are facing

8. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 8 Leadership Traits 1 1TraitsTraits Adaptable Alert to social environment Ambitious & achievement-oriented Assertive Cooperative Decisive Dependable Dominant Energetic Persistent Self-confident Tolerant of stress Willing to assume responsibilitySkillsSkills Cleverness (intelligence) Conceptual ability Creativity Diplomacy and tact Fluency in speaking Knowledge about the group task Organizational ability Persuasiveness Social ability

9. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 9 Leadership Behaviors 1 1 Yukl’s Leadership Behaviors 1.Performance emphasis 2.Consideration 3.Inspiration 4.Praise-recognition 5.Structuring reward contingencies 6.Decision participation 7.Autonomy-delegation 8.Role clarification 9.Goal setting 10.Training-coaching 11.Information dissemination 12.Problem solving 13.Planning 14.Coordinating 15.Work facilitation 16.Representation 17.Interaction facilitation 18.Conflict management 19.Criticism-discipline

10. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 10 Management versus Leadership 2 2 LeadershipAbility ManagementAbility People Who Have Both Leadership Ability and Management Ability People Who Have Leadership Ability but Are Not Managers People Who Have Management Ability but Are Not Leaders

11. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 11 Management versus Leadership 2 2ManagementManagementLeadershipLeadership Planning and budgeting Organizing and staffing Controlling and problem solving Establishing direction Aligning people Motivating and inspiring

12. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 12 The Five Sources of Power 3 3 Legitimate Coercive Referent Reward Expert

13. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 13 The Five Sources of Power 3 3. Legitimate Power – derives from their positions in their organizations. Coercive Power – result of the exercise of legitimate power. Reward Power – the right to promise or grant rewards, such as raises and promotions, is often the result of exercising legitimate power. Expert Power – a person’s abilities, skills, knowledge, and experience can exert influence when others value them. Referent Power – related to the kind of personality or personal attractiveness

14. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 14 Motivation Continuum 4 4 Opportunities for Advancement Responsibility Recognition Financial Rewards Praise Status Threats Reprimands Financial Penalties Suspension Termination Positive Motivation Negative Motivation

15. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 15 Which style a manager chooses should relate to the situation encountered. Decision-Making Styles 5 5 Free-Rein Style Participative Style Autocratic Style

16. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 16 Leadership Styles and the Distribution of Decision-Making Authority 5 5 Autocratic Style Manager makes decision, announces it, and seeks feedback Participative Style Manager makes decision with input from subordinates Free-Rein Style Subordinate makes decision subject to limits set by boss Subordinates’ Share of Decision-Making Authority Manager’s Exercise of Authority

17. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 17 Autocratic Style 5 5  Managers must: Know what needs to be done Possess expert power Face issues that they are best equipped to solve Create solutions in which implementation does not depend on others Desire to communicate through orders and instructions  Managers must: Know what needs to be done Possess expert power Face issues that they are best equipped to solve Create solutions in which implementation does not depend on others Desire to communicate through orders and instructions

18. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 18 Participative Style 5 5  Managers: Share decision-making authority with subordinates Involves others and lets them bring their viewpoints, talents, and experiences to bear on an issue Use to resolve issues that affect more than just the manager  Managers: Share decision-making authority with subordinates Involves others and lets them bring their viewpoints, talents, and experiences to bear on an issue Use to resolve issues that affect more than just the manager

19. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 19 Free-Rein Style 5 5  Managers: Rely heavily on delegation of authority Set limits and remain available for consultation Hold participants accountable for their actions  Managers: Rely heavily on delegation of authority Set limits and remain available for consultation Hold participants accountable for their actions

20. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 20 Emphasis of Task Orientation 6 6 TechnologyTechnology ProgramsPrograms MethodsMethods PlansPlans GoalsGoals DeadlinesDeadlines Getting the work out

21. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 21 Emphasis of People Orientation 6 6 RelationshipsRelationshipsTeamworkTeamworkMutualTrustMutualTrust

22. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 22 The Leadership Grid ® 6 6 Source: This image is an adaptation of The Leadership Grid ® figure as it appears in The Power to Change, Rachel McKee and Bruce Carlson (Austin: Grid International, Inc.), p. 16. Copyright © 1999 by Grid International, Inc. Reproduced by permission of the owners.

23. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 23 Theories of Situational Leadership 7 7 Life-Cycle Theory Life-Cycle Theory Path–Goal Theory Contingency Model

24. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 24 Fielder’s Contingency Model 7 7

25. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 25 House & Mitchell’s Path–Goal Theory 7 7 Leadership style is effective on the basis of how successfully leaders support their subordinates’ perceptions of:. Goals that need to be achieved. Rewards for successful performance. Behaviors that lead to successful performance

26. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 26 House & Mitchell’s Path–Goal Theory 7 7 Leaders can influence subordinates’ motivation by: 1. Teaching employees competencies needed 2. Tailoring rewards to meet employees’ needs 3. Acting to support subordinates’ efforts

27. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 27 Assumptions of Path–Goal Theory 7 7 1. A leader’s behavior is acceptable and satisfying to subordinates to the extent that they view it as either an immediate source of satisfaction or as an instrument to some future satisfaction. 2. A leader’s behavior will increase subordinates’ efforts if it links satisfaction of their needs to effective performance and supports their efforts to achieve goals.

28. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 28 Path–Goal Theory Leadership Behavior 7 7 Instrumental behavior (task-oriented) Instrumental behavior (task-oriented) Supportive behavior (employee-oriented) Supportive behavior (employee-oriented) Achievement-oriented behavior (employee-oriented) Participative behavior (employee-oriented)

29. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 29 Path–Goal Theory Situational Factors 7 7 Personal characteristics of subordinates Work environment

30. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 30 Path–Goal Theory Situational Factors 7 7 Personal Characteristics of Subordinates Abilities Self-Confidence Personal Needs and Motivations Perception of Leaders

31. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 31 Path–Goal Theory Situational Factors 7 7 Work Environment Exercise of Power Culture and Subculture Policies and Rules Structure of Tasks Structure of Tasks Management Philosophy

32. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 32 Hersey & Blanchard’s Life-Cycle Theory 7 7 Life-Cycle Theory Life-Cycle Theory A view of management that asserts that a leader’s behavior toward a subordinate should relate to the subordinate’s maturity level. The focus on tasks and relationships should vary as the subordinate matures.

33. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 33 Hersey & Blanchard’s Life-Cycle Theory 7 7 New Employees Experienced Employees AutocraticParticipativeFree-Rein

34. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Chapter 15 34 Leadership Challenges 8 8. Leadership must be exerted throughout an organization. Leadership must respond rapidly. Leadership must make difficult decisions