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9chapter
Business Essentials, 7th EditionEbert/Griffin
© 2009 Pearson Education, Inc.
Leadership and decision-making
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College
Instructor Lecture PowerPoints
The Nature of Leadership
• What Is Leadership?– The processes and behaviors used by someone,
such as a manager, to motivate, inspire, and influence the behaviors of others.
• Are Leadership and Management the Same?– No. A person can be a manager, a leader, both, or
neither.
© 2009 Pearson Education, Inc.
Source: The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from A Force for Change: How Leadership Differs from Management, by John P. Kotter, 1990. Copyright 1990 by John P. Kotter, Inc.
TABLE 9.1 Kotter’s Distinctions Between Management and Leadership
© 2009 Pearson Education, Inc.
Early Approaches to Leadership
• Trait Approaches to Leadership– Focused on identifying essential leadership traits
• Intelligence, dominance, self-confidence, energy, activity (versus passivity), and knowledge about the job
• Physical traits (height, body shape, handwriting)
– Yielded inconsistent results– Recent research has focused on a limited set
of traits• Emotional intelligence, mental intelligence, drive, motivation,
honesty and integrity, self-confidence, knowledge of the business, and charisma
© 2009 Pearson Education, Inc.
Early Approaches to Leadership (cont’d)
• Behavioral Approaches to Leadership– Focused on the behaviors of effective leaders
versus ineffective leaders– Assumed that the behaviors of effective leaders
would be the same across all situations• Task-focused leader behaviors related to increasing
the performance of employees• Employee-focused leader behaviors related to job
satisfaction, motivation, and well-being of employees
© 2009 Pearson Education, Inc.
The Situational Approach to Leadership
• Situational Approach– Assumes that appropriate leader behavior varies
from one situation to another– Continuum of leadership behavior
• Considers influences of the characteristics of the leader, subordinates, and the situation
• Continuum ranges from having the leader make decisions alone (i.e., task-focused) to having employees make decisions with only minimal guidance from the leader
© 2009 Pearson Education, Inc.
Source: Harvard Business Review. An exhibit from “How to Choose a Leadership Pattern” by Robert Tannenbaum and Warren Schmidt (May-June 1973). Copyright 1973 by the President and Fellows of Harvard College; all rights reserved.
FIGURE 9.1 The Leadership Continuum
© 2009 Pearson Education, Inc.
Leadership Through the Eyes of Followers
• Transformational Leadership– The set of abilities that allows a leader to
recognize the need for change, to create a vision to guide that change, and to execute the change effectively
• Transactional Leadership– Basic management involving routine, regimented
activities (leading during a period of stability)
© 2009 Pearson Education, Inc.
Leadership Through the Eyes of Followers (cont’d)
• Charisma– Charisma: A form of interpersonal attraction that inspires
support and acceptance
• Charismatic Leadership– Influence based on the leader’s personal charisma
© 2009 Pearson Education, Inc.
Special Issues in Leadership
• Leadership Substitutes– Individual, task, and organizational characteristics
that tend to outweigh the need for a leader to initiate or direct employee performance
• Leadership Neutralizers– Various factors that neutralize leadership
behaviors or render them ineffective• The norms of strongly cohesive groups• Elements of the job• Organizational factors
© 2009 Pearson Education, Inc.
The Changing Nature of Leadership• Leader as Coach
– From directive overseer to mentor
• Gender– Understanding the differences and dynamics in the
approaches of women and men to leadership
• Cross-Cultural Leadership– The effects of an individual’s native culture on his or
her approach to leadership when functioning in another culture
• Collectivism versus individualism
© 2009 Pearson Education, Inc.
Emerging Issues in Leadership
• Strategic Leadership– Leader’s ability to understand the complexities of the
organization and its environment and lead change so as to enhance organizational competitiveness
• Ethical Leadership– Leader’s ability to maintain high ethical standards for
personal conduct, unfailingly exhibit ethical behavior, and hold others to the same standards
• Virtual Leadership– Leading through effective communication and
maintaining collaborative relationships at a distance
© 2009 Pearson Education, Inc.
Leadership, Management, and Decision-Making
• Rational decision-making– Recognizing and defining the decision situation– Identifying alternatives– Evaluating alternatives– Selecting the best alternative– Implementing the chosen alternative– Following up and evaluating the results
© 2009 Pearson Education, Inc.
Behavioral Aspects of Decision-Making• Political Forces in Decision-Making
– Coalition: An informal alliance of individuals or groups formed to achieve a common goal
• Intuition– An innate belief about something, often without conscious
consideration
• Escalation of Commitment– Staying with a chosen course of action, even when it
appears to have been wrong
• Risk Propensity– The extent to which a decision-maker is willing to gamble
when making a decision© 2009 Pearson Education, Inc.