1. Chapter © 2008The McGraw-Hill Companies, Inc. All rights reserved. Leadership 16 McGraw-Hill/IrwinCopyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

2. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. So what is Leadership? Some researchers define leadership in terms of personality and physical traits. Some researchers believe leadership is represented by a set of prescribed behaviors. Some researchers define leadership in terms of power relationships between leaders and followers. Some researchers define leadership in terms of accomplishment of goals. Some researchers define leadership from a skill-set perspective. 16-2

3. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-3 Leaders and Managers p. 469 Inspire & Motivate Manage People Are Decisive Create a Vision Managers who are also leaders Leaders Managers Are Accountable Execute Manage Resources Plan, organize, direct, control

4. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-4 Leadership A leader is someone influences a group of individuals to achieve a common goal. 4 commonalities for all definitions of leadership include: 1.Leadership is a process between leaders and followers 2.Leadership involves social influence 3.Leadership occurs at various levels in an organization Individual level, team level, organization level 4.Leadership focuses on goal accomplishment

5. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-5 Approaches to Studying Leadership p. 468 Trait approaches - research in early 1900s Behavioral approaches - research of the 1950s & 1960s Contingency approaches - research of the 1960s & 1970s Transformational Approaches - research of the 1980s Emerging Approaches - most current research of the new millennium

6. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-6 Trait Approach to Leadership p. 471 http://www.life.com/gallery/36522/image/57191791/15-great-leaders-through- history#index/1 “Great Man” theory Leaders are born with innate ability to lead Martin Luther King, Jr. Abraham Lincoln A “Great Man” had leader traits Physical or personality characteristics that differentiated him from his followers Studies conducted to determine “traits” for leaders Stogdill and Mann, Kouzes and Posner, Goleman, Judge, Kellerman

7. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-7 Key Positive Leadership Traits p. 474 Intelligence – greatest correlation to effective leadership Self-confidence Determination Credibility = Honesty/Integrity Sociability Extroversion – great correlation to leadership emergence and effectiveness Conscientiousness Problem solving skills

8. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-8 Ineffective Leadership Traits p. 473 Incompetent Rigid Intemperate Callous Corrupt Insular Evil

9. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Behavioral Styles Theory Idea that leaders can be made; leaders are not born. Post WWII, the military was very interested in this research! Many believed that behavior, not personality, better explains how leaders directly affect work group effectiveness. Leadership styles, based on behavior, were identified through Ohio State studies. 2 basic dimensions of behavior: Consideration – leader fostering mutual trust and respect Initiating – leader behavior that maximizes worker output 16-9

10. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-10 Four Leadership Styles p. 475 Seeks input from others before taking action; gets consensus High Low Showing Consideration Initiating Structure Passive, noncommittal, low impact on followers Takes charge, structures employees tasks Emphasizes reaching the goal while welcoming suggestions and encouraging consensus

11. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-11 Drucker’s 9 Behaviors to Improve Leadership Effectiveness p. 477 1.Determine what needs to be done. 2.Determine the right thing to do for the welfare of the entire enterprise. 3.Develop action plans. 4.Take responsibility for decisions. 5.Take responsibility for communicating action plans. 6.Focus on opportunities rather than problems. 7.Run productive meetings. 8.Think and say “we” rather than “I”. 9.Listen first, speak last.

12. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Question for Today By expressing your own opinion, tell me if you think leaders are born or made? 16-12

13. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Approaches to Studying Leadership 1.Trait approaches 2.Behavioral approaches 3.Contingency approaches 4.Transformational Approaches 5.Emerging Approaches

14. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Fiedler’s Contingency Theory There must be a match between the leader’s style and the demands of the situation for the leader to be effective. Leadership style does not change. If a mismatch occurs between style and the situation, change the situation. Leadership styles are task-motivated or relationship - motivated. Contingency Approaches to Leadership

15. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Path Goal Theory 1.Theory has 8 categories of leader behavior (in the modified version) and the categories depend greatly on employee characteristic and environmental factors. 2.Leaders are expected to spend more effort fostering intrinsic motivation through empowerment. 3.Leadership is not limited to people in managerial roles; leadership should be shared by all people in an organization.

16. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. House’s Revised Path-Goal Theory Leader Behaviors  Path-goal clarifying  Achievement oriented  Work facilitation  Supportive  Interaction facilitation  Group oriented- decision making  Representation and networking  Value based Employee Characteristics  Locus of control  Task ability  Need for achievement  Experience  Need for clarity Environmental Factors  Task structure  Work group dynamics  Employee motivation  Employee satisfaction  Employee performance  Leader acceptance  Work-unit performance Leader Behaviors Leadership Effectiveness Environmental Factors Employee Characteristics

17. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Transformational Approaches Transactional Leadership focuses on clarifying employees’ roles and providing rewards contingent on performance Appeals to what followers want (rewards) Self-interest is important in this approach Transformational Leadership transforms employees to pursue organizational goals over self-interest Appeals to followers’ values, beliefs, self-concept Organizational interest overrides self-interest

18. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Emerging Approaches Leader-Member Exchange (LMX ): Leaders treat all employees differently, based entirely upon one-on-one relationship. Shared Leadership exchange: simultaneous, ongoing, mutual influence process in which individuals share responsibility for leading, regardless of their formal roles and titles. Servant-Leadership: Great leaders act as servants, putting the needs of others, including employees, customers, and community, as their first priority. Follower Perspective: Followers must understand themselves and their leaders, build on mutual strengths, and accommodate their leader’s style.

19. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-19 Servant Leadership Characteristics Very self-aware of their strengths and limitations 4)Awareness Strive to make themselves and others whole in the face of failure or suffering 3)Healing Try to empathize with others’ feelings and emotions 2)Empathy Focus on listening to identify and clarify the needs and desires of the group 1)Listening Description Servant-Leadership Characteristics Rely on persuasion when making decisions and trying to influence others 5)Persuasion Table 16-7

20. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-20 Servant Leadership Characteristics Assume they are stewards of the people and resources they manage 8)Stewardship Have ability to foresee future outcomes associated with a current course of action or situation 7)Foresight Seek the appropriate balance between a short-term, day-to-day focus, and a long-term, conceptual orientation 6)Conceptualization Description Servant-Leadership Characteristics Table 16-7

21. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 16-21 Servant Leadership Characteristics Strive to create a sense of community both within and outside the work organization 10)Building community Committed to people beyond their immediate work role 9)Commitment to the growth of people Description Servant-Leadership Characteristics Table 16-7

22. © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Question for Today 16-22 Pretend that you work for a medium-sized movie theater, which has about 50 locations covering 10 states, the southeast region of the United States. Identify some activity in which your organization could engage in servant-leadership. This method should demonstrate leadership to the community, or to your company’s geographic region. t should build trust with people (not just customers), should engage all levels of the organization, and should solve some important need in the area.