Chap 012

12-1

Bateman

Snell

Management Competing in the New Era

5th Edition Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Part Four Chapter 12 - Leadership Chapter Outline Vision Leading and Managing Leading and Following Power and Leadership Traditional Approaches to Understanding Leadership Contemporary Perspectives on Leadership Developing Your Leadership Skills Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Learning Objectives After

studying Chapter 12, you will know:

 what

it means to be a leader  how a good vision helps you be a better leader  how to understand and use power  the personal traits and skills of effective leaders  the behaviors that will make you a better leader  what it means to be a charismatic and transformational leader  how to further your own leadership development

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Vision Vision a

mental image of a possible and desirable future state of the organization  having a vision and communicating it to others are essential components of great leadership  the best visions are both: ideal

- communicates a standard of excellence and clear choice of positive values unique - communicates and inspires pride in being different from other organizations  can

exist throughout all organizational levels  visions can be inappropriate

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Leading And Managing Ability

to lead effectively sets excellent managers apart from average ones  managers

deal with ongoing organizational activities

planning

 leadership creating

and budgeting routines, structuring the organization

includes orchestrating organizational change a vision for the firm and inspiring people to attain it

 management

and leadership are both vitally important  supervisory leadership - provides guidance, support, and corrective feedback for day-to-day activities of work unit members  strategic leadership - gives purpose and meaning to organizations

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Leading And Following Organizations

succeed or fail because of how well followers follow  effective

followers:

are

capable of independent thinking are actively committed to organizational goals are enthusiastic about ideas and purposes beyond their own self interest master skills that are useful to the organization hold performance standards that are higher than required

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Power And Leadership Power  ability

Sources

to influence other people

of power

 legitimate

power - leader has organizational authority  reward power - leader has control over valued rewards  coercive power - leader has control over punishments  referent power - leader has personal characteristics that appeal to others and make them desirous of the leader’s approval  expert power - leader has knowledge that others feel will be of benefit to them Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Sources Of Power Authority

Control over rewards

Expertise

Power

Appealing personal characteristics

Control over punishments Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To Understanding Leadership Leader

traits

 trait

approach - focussed on individual leaders to determine the personal characteristics that great leaders share  characteristics that distinguish effective leaders drive

- characteristics that reflect a high level of effort leadership motivation - desire to lead integrity - actions correspond to words self-confidence - expectation that one is able to overcome obstacles and make good decisions in the face of uncertainty knowledge of the business - ability to interpret information ability to perceive the needs of others and to adjust one’s behavior accordingly Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To Understanding Leadership (cont.) Leader

behaviors

 behavioral

approach - sought to identify what behaviors good leaders exhibit  Task performance - leader’s efforts to ensure that the work unit reaches its goals focus

on work speed, quality and quantity of output, and rules

 Group

maintenance - ensure the satisfaction of group members develop

and maintain harmonious work relationships Leader-Member Exchange (LMX) theory - focuses on the leader’s behavior toward individuals 

maintenance behaviors Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To Understanding Leadership (cont.) Leader

behaviors (cont.)

 Participation

in decision making - leader behaviors that managers perform in involving their employees in making decisions autocratic

leadership - makes decisions and then announces them to the group democratic leadership - solicits input from others 

uses consensus or majority vote to make the final choice

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-12

Traditional Approaches To Understanding Leadership (cont.)

Leader  The

behaviors (cont.)

effects of leader behavior

decision

styles - characteristics of the situation, leader, and the follower determine the appropriate decision-making style 

laissez-faire - leadership philosophy characterized by an absence of managerial decision making

performance

and maintenance behavior - are independent of

each other 

Ohio State studies - grievances and turnover  were lower when supervisor was high on maintenance behavior  were higher when supervisor was high on task performance behavior  when leader must be high on performance-oriented behavior, s/he should also be maintenance-oriented Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To Understanding Leadership (cont.) Leader  The

behaviors (cont.)

effects of leader behavior (cont.)

performance

and maintenance behavior (cont.)

Michigan studies - most effective managers were task oriented  effective managers also were relationship oriented  taken together, Ohio State and Michigan research suggested that the ideal leader is always both performance and maintenance oriented  Blake and Mouton’s Leadership Grid  described a wide range of leadership styles  recommended a 9,9 style that is high on concern for people and high on concern for production  ignores the effect of the situation 

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Country Club Management (1,9)

Team Management (9,9)

6

7

Concern for People

8

High

9

The Leadership Grid

1 2

3

4 5

Middle of the Road Management (5,5)

Low

Impoverished Management (1,1) 1

Low

2

3

4

AuthorityCompliance (9,1) 5

6

7

Concern for Production

8

9

High

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-15

Traditional Approaches To Understanding Leadership (cont.) Situational

approaches to leadership

 leadership

perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation requires

the leader to first analyze the situation and then decide what to do

 Tannenbaum

and Schmidt - three factors must be considered

forces in the manager  forces in the subordinate  forces in the situation 

arguments

remain valid today Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To Understanding Leadership (cont.) Situational

approaches to leadership (cont.)

 Vroom-Yetton-Jago

model - focuses on how leaders go about making decisions seven

situational factors used to analyze problems

each based on a problem attribute  scored as either high or low 

answering

a series of questions about the problem attributes leads one to 14 possible endpoints of the analysis each endpoint recommends one of five decision styles  decision styles indicate that there are several shades of participation 

use

of model ensures that important situational factors are considered Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Vroom’s Situational Factors For Problem Analysis

DECISION SIGNIFICANCE

The significance of the decision to the success of the project or organization

IMPORTANCE OF COMMITMENT

The importance of team members’ commitment to the decision

LEADER’S EXPERTISE

Your knowledge or expertise in relation to this problem

LIKELIHOOD OF COMMITMENT

The likelihood that the team would commit itself to a decision that you might make on your own

GROUP SUPPORT FOR OBJECTIVES

The degree to which the team supports the organization’s objectives at stake in this problem

GROUP EXPERTISE

Team members’ knowledge or expertise in relation to this problem

TEAM COMPETENCE

The ability of team members to work together in solving problems Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Figure 12.3 The Vroom-Yetton-Jago model Team Competence Group Expertise Group Support Decision Significance

Importance of Commitment

Leader Expertise

Likelihood of Commitment

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Figure 12.3 The Vroom-Yetton-Jago model Instructions: The Matrix operates like a funnel. You start at the left with a specific decisions problem in mind. The column headings denote situational factors which may or may not be present in that problem. You progress by selecting High or Low (H or L) for each relevant situational factor. Proceed down from the funnel, judging only those situational factors for which a judgment is called for, until you reach the recommended process. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Vroom’s Leader Decision Styles

Decide 0

Consult Individually 3

Consult Group 5

Facilitate 7

Delegate 10

Area of freedom for subordinates

Use of authority by manager

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-21

Traditional Approaches To Understanding Leadership (cont.) Situational

approaches to leadership (cont.)

 Path-goal

theory - concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals factors

that determine appropriate leader behavior include:

personal characteristics of the followers  authoritarianism  locus of control  ability  environmental pressures with which followers must cope  people’s tasks  formal authority system of the organization  primary work group 

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-22

Traditional Approaches To Understanding Leadership (cont.) Situational  Path-goal four

approaches to leadership (cont.) theory (cont.)

pertinent leadership behaviors

directive leadership  supportive leadership  participative leadership  achievement-oriented leadership 

theory

suggests that the leader should:

make the path to work goals easier to travel by providing coaching and direction  reduce frustrating barriers to goal attainment  increase opportunities for personal satisfaction by increasing payoffs to people for achieving performance goals 

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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The Path-Goal Framework Characteristics of followers Appropriateness of 3. Directive, determine 4. Supportive, 5. Participative, or 6. Achievement leader behaviors

leading to

Followers’ goals and performance

Environmental factors

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-24

Traditional Approaches To Understanding Leadership (cont.) Situational

approaches to leadership (cont.)

 Substitutes

for leadership - factors in the workplace that can exert the same influence on employees that leaders would provide certain

follower, task, and organizational factors are substitutes for task performance-oriented and group maintenance-oriented leader behaviors practical implication of this idea create situations in which substitutes for leadership operate  leader will require less time in attempts to influence people 

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-25

Contemporary Perspectives On Leadership Charismatic

leadership

 dominant

and exceptionally self-confident, and have a strong conviction in the moral righteousness of their beliefs  articulates ideological goals  inspire their followers trust, confidence, acceptance, obedience, emotional involvement, affection, admiration, and higher performance

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-26

Contemporary Perspectives On Leadership (cont.) Transactional

leadership

 traditional

management through business transactions in which leaders use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered  dispassionate leadership that does not inspire people to focus on the interests of the organization Transformational

leadership

 moves

beyond transactional leadership  a leader who transforms a vision into reality and motivates people to transcend their personal interests for the good of the group Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Contemporary Perspectives On Leadership (cont.) Transformational  Generating

leadership (cont.)

excitement - three ways

they

are charismatic provide individualized attention they are intellectually stimulating  Skills

and strategies - rely on four

have

a vision communicate their vision build trust have a positive self-regard  Transforming

leaders - training available to stimulate transformational leadership Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Contemporary Perspectives On Leadership (cont.) Post-heroic  even

leadership

great top executives can’t solve all problems on their

own  effective leadership must permeate the organization leader

must spread leadership abilities throughout the firm make heroes out of those who figure out what needs to be done and then do it A

note on courage

 need

courage to:

create

and execute a vision take reasonable risks Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-29

Classic Contingency Models Of Leadership Fiedler’s  leader the

contingency model

effectiveness depends on two factors

personal style of the leader

task-motivated - primary emphasis on completing the task  low Least Preferred Coworker (LPC)  relationship-motivated - emphasizes maintaining good interpersonal relationships  high LPC 

degree

to which the situation gives the leader power, control, and influence over the situation 

different situations dictate different leadership styles

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Fiedler’s Analysis Of Situations Leadermember relations Task structure Leader position power

Good Structured High

Low

Poor

Unstructured High

Low

Structured High

Low

Favorable for leader Most effective leader in the situation

Unstructured High

Low Unfavorable for leader

Taskmotivated

Taskmotivated

Taskmotivated

Relationshipmotivated

Relationshipmotivated

Relationshipmotivated

Relationshipmotivated

Taskmotivated

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-31

Classic Contingency Models Of Leadership (cont.) Hersey

and Blanchard’s situational theory

 manager

should consider an employee’s psychological and job maturity job

maturity - level of the follower’s skills and technical knowledge relative to the task performed psychological maturity - follower’s self-confidence and selfrespect  determines

the degree to which task performance or maintenance behaviors are important maintenance

behaviors are not important with followers of low or high levels of maturity performance behaviors important for followers with low maturity Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.