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Chapter

Chapter

LeadershipLeadership

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McGraw-Hill/IrwinMcGraw-Hill/IrwinManagement, 7/eManagement, 7/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2007 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. What people want and organizations from leaders. 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. The many types of opportunities to be a leader in

an organization. How to further your own leadership development.

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What Do We Want from Our Leaders?

They want help in achieving their goals; which includes Support for their development Clearing obstacles so they can perform at high

levels Treatment that is respectful, fair and ethical This is not only about pay and promotions

Leaders throughout the organization are needed to do the things that their people want, but also to help create and implement strategic direction

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Key Leadership Behaviors

According to James Kouzes and Barry Posner, the best leaders: Challenge the process – they challenge conventional

beliefs and practices, and they create change Inspire a shared vision – they appeal to people’s values

and motivate them to care about an important mission Enable others to act – they give people access to

information and give them the power to perform to their full potential

Model the way – they are living examples of the ideals they believe in

Encourage the heart – they show appreciation, provide rewards and use various approaches to motivate people in positive ways

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Vision

Vision is a mental image of a possible and desirable future state of the organization It expresses the leader’s ambitions for the

organization Vision is necessary for effective leadership A person or team can develop a vision for

any job, work unit, or organization Many people who do not develop into

strong leaders, do not develop a clear vision

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Vision

Visions must be clear so that people know what they are working toward

Visions can fail for a number of reasons An inappropriate vision

may reflect merely the leader’s personal needs

An inappropriate vision may ignore stakeholder needs

The vision may not take environmental changes into account

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Leading and Managing

Management will deal with the ongoing day-

to-day complexities of organizations

Plan and budget routines Structure the

organization, staff it with capable people, and monitor activities

Leaders will Effectively orchestrating

important change Set the direction for the

firm Inspire people to attain

the vision Keep people focused on

moving the organization toward its ideal future, motivating them to overcome whatever obstacles lie in the way

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Leading and Managing

Highlighting the need for leadership is not to minimize the importance of management or manager Leadership involves unique processes that are

distinguishable from basic management process Just because they involve different processes

does not mean that they require different, separate people

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Leading and Managing

Rather than try to distinguish between management and leadership it might be more effect to discuss strategic and supervisory leadership Supervisory leadership is behavior that provides

guidance, support, and corrective feedback for day-today activities

Strategic leadership gives purpose and meaning to organizations

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Leading and Following

Organizations succeed or fail not only because of how well they are led but because of how well followers follow

Good followers help produce good leaders The most effective followers are capable

of independent thinking and at the same time are actively committed to organizational goals

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Power and Leadership

Central to effective leadership is power Power is the ability influence others

Leaders have five important potential sources of power Legitimate power means that the leader has the right, or

authority to tell others what to do Reward power means the leader influences others because

she controls valued rewards Coercive power means the leader has control over

punishments Referent Power means the leader has personal

characteristics that appeal to others Expert Power means the leader has certain expertise or

knowledge

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Sources of Power

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Traditional Approaches to Understanding Leadership

There are three traditional approaches to studying leadership Trait approach is a perspective that attempts to

determine the personal characteristics that great leaders share

Behavioral approach is a perspective that attempts to identify what good leaders do – that is what behaviors they exhibit

Situational approach is a perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation

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Leader Traits

Drive – this refers to a set of characteristics that reflect a high level of effort; it includes high need for achievement, striving for improvement, ambition, energy tenacity, and initiative

Leadership motivation – refers to the fact that great leaders no only have drive they also want to lead; extraversion is considered important for this area

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Leader Traits

Integrity – refers to the correspondence between actions and words; honesty and credibility are especially important for leaders

Self-confidence – this allows a leader to overcome obstacles, make decisions despite uncertainty, and instill confidence in others

Knowledge of the business – effective leaders have a high level of knowledge about their industries, companies, and technical matters

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Leader Behaviors

Task performance – actions taken to ensure that the work group or organization reaches its goals

Group maintenance – actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group

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Leader Behaviors

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Participation in Decision Making

Participation in decision making describes how managers perform in involving their employees in making decisions Autocratic leadership – a form of leadership

in which the leader makes decisions on his or her own and then announces those decisions to the group

Democratic leadership – a form of leadership in which the leader solicits input from subordinates

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The Effects of Leader Behavior

Decision styles – a democratic approach resulted in the most positive attitudes, whereas an autocratic approach resulted n somewhat higher performance

Performance and Maintenance Behaviors Maintenance behaviors (consideration) lead

to fewer grievances and less turnover Performance behavior (initiating structure)

tends to lead to more grievances and higher turnover rates

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Situational Approaches to Leadership

Proponents of this approach believe that effective leader behaviors vary from situation to situation The leader should

first analyze the situation and then decide what to do

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Situational Factors for Problem Analysis

Decision significance: The significance of the decision to the success of the project

Importance of commitment: The importance of team members’ commitment to the decision

Leader’s expertise: Your knowledge or expertise in relation to this problem

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Situational Factors for Problem Analysis

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

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Vroom Model of Leadership

The Vroom model emphasizes the participative dimension of leadership

There are five leader decision styles Decide: the leader makes the decision alone Consult individually: The leader presents the

problem to the group members individually for suggestions and then makes the decision

Consult the group: the leader presents the problem to the group members in a meeting for suggestions and then makes the decision

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Vroom Model of Leadership

The five leader decision styles continued Facilitate – the leader presents the problem

to the group in a meeting and then acts as a facilitator to define the problem to be solved

Delegate: The leader permits the group to make the decision within prescribed limits

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Path-Goal Theory

Key situational factors are Personal characteristics of followers Environmental pressures and demands with

which followers must cope to attain their work goals

Four pertinent leadership behaviors Directive leadership – a form of task

performance-oriented behavior Supportive leadership - a form of group

maintenance-oriented behavior Participative leadership Achievement-oriented leadership – behaviors

geared toward motivating people

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Path-Goal Theory

Three follower characteristics Authoritarianism – the degree to which individuals respect,

admire, and defer to authority Locus of control – the extent to which individuals see the

environment as responsive to their own behavior Ability – an individuals belief about their own ability to do an

assigned job

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Charismatic Leadership

Charismatic leaders are people who are dominate, self-confident, convinced of the moral righteousness of their beliefs, and able to arouse a sense of excitement and adventure in followers

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Transformational Leadership

The transformational leader motivates people to transcend their personal interests for the good of the group

The transformational process moves beyond the more traditional transactional approach to leadership Transactional leaders manage through

transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered

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Transformational Leadership

Transformational leaders generate excitement through their charisma, giving followers individualized attention, and being intellectually stimulating

At least four skills or strategies contribute to transformational leadership Having a vision Communicating the vision Building trust Having a positive self-regard

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Transformational Leadership

Transformation leaders have a positive impact on followers’ personal development

Level 5 leadership is considered, by some, the ultimate leadership style It is a combination of strong professional will

and humility that builds enduring greatness It requires that the leader exhibit a

combination of transactional and transformational styles

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Authenticity

Authentic leadership is rooted in the ancient Greek philosophy ‘To thine own self be true’

Authentic leaders strive for authenticity in the form of honesty, genuineness, reliability, integrity, and trustworthiness

Authentic transformational leaders care about public interests not just own

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Opportunities for Leaders

The leader’s job is to create an environment in which each person can figure out what needs to be done and then do it well

This perspective creates a number of nontraditional leadership roles Servant leaders are those who serve others’

needs while strengthening the organization Bride leaders are those who bridge

conflicting value systems or different cultures

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Opportunities for Leaders

Nontraditional leadership roles continued Shared leadership occurs when people rotate

through the leadership role based on which person has the most relevant skills at a particular time

Lateral leadership is a style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving

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A Note on Courage

Acts of courage required to fulfill your vision will include: Seeing things as they are and facing them

head-on Saying what needs to be said to those who

need to hear it Persisting despite resistance, criticism,

abuse, and setbacks

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Developing Your Leadership Skills

How did great leaders develop leadership skills? ‘By taking risks, trying, and learning from my mistakes.’ ‘Lots of practice.’ ‘By making mistakes myself and trying a different approach.’ ‘By purposely engaging with others to get things done.’

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How Do I Start?

Think about your potential employer and look at how it develops leadership talent

Seek developmental experiences like: Assignments to build something from nothing

or to turn around a failing operation Have exposure to positive role models and

work with people of divers backgrounds Hardships will teach you numerous things,

what can you learn from current hardships Other developmental events include formal

courses, job experiences, and supervision experiences

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What Are the Keys?

The most effective developmental experiences have three components Assessment – where you are now, your

strengths, leadership effectiveness, and primary development needs

Challenge – they will stretch you by challenging the way you think and behave

Support – others will value your efforts to learn and grow

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Looking Ahead

Chapter 13 Motivating for Performance The kinds of behaviors managers need to

motivate in people. How to set challenging, motivating goals. How to reward good performance properly. The key beliefs that affect people’s motivation. The ways in which people’s individual needs

affect their behavior. How to create a motivating, empowering job. How people assess fairness and how to achieve

fairness. The causes and consequences of a satisfied

workforce.