1. Contemporary Management NEW ERA OF MANAGEMENT LECTURE6 Dr. Mohamed Hesham Mansour

2. Leadership Chapter 15

3. Copyright © 2008. All rights reserved. 3

4. 4 Leadership Leadership definition Differences in leadership and management Theories of leadership effectiveness Charismatic and transformational leadership How leaders use power and influence to get things done New leadership approaches for today’s turbulent environment Different leaders behave in different ways – style, need, situation Topics Chapter 15

5. Leadership “From Boss To Supervisory Leader” The supervisory leader of the future is, indeed, going to have to move from the old style boss, to a leadership position in the organization, and that’s the big bottom line for today. In order to do that you need to make some changes in the way that you supervise and lead people.

6. Copyright © 2008. All rights reserved. 6 Nature of Leadership The ability to influence people toward the attainment of organizational goals. Leadership is reciprocal, occurring among people. Leadership is a “people” activity, distinct from administrative paper shuffling or problem-solving activities. Leadership is dynamic and involves the use of power. travel the globe solving problems

7. Copyright © 2008. All rights reserved. 7 Sources of Power  Legitimate Power: power coming from a formal management position.  Reward Power: stems from the authority to bestow rewards on other people.  Coercive Power: the authority to punish or recommend punishment.  Expert Power: leader’s special knowledge or skill regarding the tasks performed by followers.  Referent Power: personality characteristics that command subordinates’ identification, respect, and admiration so they wish to emulate the leader

8. Copyright © 2008. All rights reserved. 8 Leadership versus Management Management Promotes stability, order and problem solving within existing organizational structure and systems Leadership Promotes vision, creativity, and change M L Takes care of where you are Meets current commitments Takes you to a new place Moves into the future

9. Situational Leadership Supervisory LeadersBosses Personal power Position power Collaboration Control Proactive Reactive Align and innovate Comply and maintain Lead empowered teams Manage work groups

10. Copyright © 2008. All rights reserved. 10 Leader versus Manager Qualities Manager QualitiesLeader Qualities SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal power MIND Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing Position power

11. Copyright © 2008. All rights reserved. 11 Leadership Traits Traits - early efforts to understand leadership success focused on leader’s personal characteristics Great man approach - early research focused on leaders who had achieved a level of greatness – Find out what made them great – Find people with same traits Traits = personal characteristics

12. Copyright © 2008. All rights reserved. 12 Personal Characteristics of Leaders Physical Characteristics Energy Physical stamina Social Background Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Personality Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy

13. Copyright © 2008. All rights reserved. 13 Behavioral Approaches Ohio State Studies Consideration: - people-oriented behavior – Is mindful of subordinates – Establishes mutual trust – Provides open communication – Develops teamwork Initiating Structure: task-oriented behavior – Directs subordinate work activities toward goal attainment – Typically gives instructions, spends time planning, and emphasizes deadlines – Provides explicit schedules of work activities

14. Copyright © 2008. All rights reserved. 14 Behavioral Approaches Michigan Studies University of Michigan compared the behavior of effective and ineffective supervisors Employee-centered leaders Job-centered leaders At about the same time as Ohio State Studies

15. Copyright © 2008. All rights reserved. 15 The Leadership Grid Two-dimensional leadership theory that measures the leader’s concern for people and for production Builds on the work of Ohio State and Michigan studies Blake and Mouton

16. Task and People Orientation Task-oriented managers People-oriented managers 9,91,9 5,5 9,11,1 Managerial Grid High Low High People Task Country ClubTeam Status Quo IndifferentControlling Leadership

17. Copyright © 2008. All rights reserved. 17 Leadership Grid High Low Concern for Production Concern for People 1,9 Country Club Management Thoughtful attention to the needs of people for satisfying relationships leads to a com- fortable, friendly organization atmosphere and work tempo. Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. 1,1 9,9 Team Management Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect. 5,5 Middle-of-the-Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. Authority-Compliance Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 9,1 The Leadership Grid 5,5

18. Copyright © 2008. All rights reserved. 18 Contingency Approaches Fiedler’s Contingency Theory Hersey and Blanchard Situational Theory Evans and House Path Goal Theory Relationship between leadership style and situation

19. Copyright © 2008. All rights reserved. 19 Fiedler’s Classification of Situation Favorableness Leaders needs to know  Whether they have a relationship- or task-oriented style  Should diagnose the situation and determine the favorableness of the following three areas

20. Copyright © 2008. All rights reserved. Findings from Fiedler Model

21. Use of authority by the manager Area for freedom for subordinates Boss centered leadershipSub-ordinate centered leadership Manager permits people to act in limits defined by superior Manager defines limits. Asks group to make decision Manager presents problem, gets suggestions makes decision Manager presents tentative decision subject to change Manager presents ideas and invites questions Manager sells decision Manager makes decision and announces it D e c i d e C o n s u l t FacilitateDelegate Leadership Styles

22. Copyright © 2008. All rights reserved. 22 Hersey-Blanchard’s Situational Leadership Theory Links leader’s behavioral style with subordinates’ task readiness Very High Readiness Level High Readiness Level Moderate Readiness Level Low Readiness Level Follower CharacteristicsAppropriate Leader Style Telling Selling Participating Delegating

23. Situational Leadership High Task High Relation-ship S2S3 High Relation- ship Low Task S1 High Task Low Relation- ship Low Relation- ship Low Task S4 Task Behavior LowModerateHigh M1M2M3M4 Delegating Participating Selling Telling Relationship behavior High Low Style of leader Effective Styles (Low) (High) Mature Immature Maturity of followers

24. Copyright © 2008. All rights reserved. 24 Path Goal Theory Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), 26-40. EVANS & HOUSE

25. Copyright © 2008. All rights reserved. 25 Path-Goal Theory Leader Behaviors  Supportive leadership: - Leader behavior that shows concern for subordinates - Open, friendly, and approachable - Creates a team climate - Treats subordinates as equals  Directive leadership: - Tells subordinates exactly what they are supposed to do - Planning, making schedules, setting performance goals, and behavior standards Classification of (4) leader behaviors

26. Copyright © 2008. All rights reserved. 26 Path-Goal Theory Leaders Behaviors  Participative leadership: … Consults with his or her subordinates about decisions  Achievement-oriented leadership: … Sets clear and challenging goals for subordinates … Behavior stresses high-quality performance Classification of (4) leader behaviors

27. Copyright © 2008. All rights reserved. 27 Path-Goal Situational Contingencies  Personal characteristics of group members  The work environment  Degree of task structure  Nature of formal authority system  Work group itself

28. Copyright © 2008. All rights reserved. 28 Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.

29. Copyright © 2008. All rights reserved. 29 Substitutes for Leadership Substitute = situational variable that makes a leadership style unnecessary or redundant Neutralizer = situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors

30. Copyright © 2008. All rights reserved. 30 Leading Change Transactional Leaders  Clarify the role and task requirements of subordinates  Initiate structure  Provide appropriate rewards  Display consideration for subordinates  Meet the social needs of subordinates

31. Copyright © 2008. All rights reserved. 31 Leading Change Charismatic Leaders  The ability to inspire  Motivate people to do more than they would normally do  Tend to be less predictable than transactional leaders  Create an atmosphere of change  May be obsessed by visionary ideas

32. Copyright © 2008. All rights reserved. 32 Leading Change Transformational Leader  Similar to charismatic leaders  Distinguished by their special ability to bring about innovation and change by  Recognizing followers’ needs and concerns  Helping them look at old problems in new ways  Encouraging them to question the status quo

33. Copyright © 2008. All rights reserved. 33 Interpersonal Influence Tactics 1. Use rational persuasion 2. Make people like you 3. Rely on the rule of reciprocity 4. Develop allies 5. Be assertive 6. Make use of higher authority 7. Reward the behavior you want

34. Copyright © 2008. All rights reserved. 34 Post-Heroic Leadership for Turbulent Times The turbulence and uncertainty of the environment in which most organizations are operating is a significant influence on leadership styles Post-heroic leader’s major characteristic is humility

35. Copyright © 2008. All rights reserved. 35 Leadership in Turbulent Times The concept and practice of leadership continues to grow and change Post-heroic approach Servant leadership Level 5 leadership Interactive leadership E-leadership Moral leadership

36. Copyright © 2008. All rights reserved. 36 THANK YOU