MME 3113 Engineering ManagementLecture 7 Leadership*

Dr. Mustafizul KarimProfessor

INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA *Adopted from Gareth R. Jones and Jennifer M. George Contemporary Management 4th Edition

Learning ObjectivesWhen you complete this chapter, you should be able to :Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders.

Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership.

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Learning ObjectivesWhen you complete this chapter, you should be able to :Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.

Describe what transformational leadership is, and explain how managers can engage in it.

Characterize the relationship between gender and leadership.

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The Nature of LeadershipLeadershipThe process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals.Effective leadership increases the firms ability to meet new challenges.LeaderAn individual who is able to exert influence over other people to help achieve group or organizational goals

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The Nature of LeadershipPersonal Leadership StyleThe specific ways in which a manager chooses to influence others - shapes the way that manager approaches the other tasks of management (organizing, planning, and controlling).

Some leaders may delegate and support subordinates, while others are very authoritarian.

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The Nature of LeadershipPersonal Leadership StyleRead John Mackeys personal leadership style in the Management Snapshot. (P-355, Essentials of Contemporary Management, 2nd ed, Jones and George)He is casual and informalPromotes ethical valuesPuts the interests of customers and employees before the interests of shareholdersTakes active steps to promote interests of Whole Foods multiple stakeholders.*

Personal Leadership Styleand managerial Tasks An exampleMichael Kraus owner and manager of a dry cleaning store.He takes hands-on approach to leadershipHas sole authority for determining work schedules and job assignments for the 15 employees (an organizing task)Makes all important decisions by himself (a planning task)Monitors his employees performance and rewards top performers with pay increases (a control task)

Personal Leadership Styleand managerial Tasks An exampleKraus personal leadership style is effective in his organization. His employees are generally motivated, perform well, and are satisfied, and his store is highly profitable.

Personal Leadership Styleand managerial TasksThe challenge is for managers at all levels to develop an effective personal management style.This challenge is often exacerbated (exacerbate - make worse) when times are tough due, for example, to an economic downturn or a decline in customer demand.

Personal Leadership Styleand managerial TasksManagers and leaders (a distinction often made)Managers are often engaged in establishing and implementing procedures and processes while Leaders look to the future, attract, retain, motivate, inspire, and develop relationships with employees based on trust and mutual respect.

Leadership Across CulturesLeadership styles vary not only among individuals but also vary among different countries or cultures.European managers tend to be more people-oriented than American or Japanese managers.Japanese managers are group-oriented, while U.S managers focuses more on profitability.Time horizons are also affected by cultures.US Organizations tend to have a short-run profit while Japanese tend to have a long-term growth orientation.*

Sources of Managerial Power The key to leadership*No matter what ones leadership style, a key component of effective leadership is found in the power the leader has to affect other peoples behavior and get them to act in certain ways. There are several types of power : legitimate, reward, coercive, expert, and referent power. (Figure, next slide)

Sources of Managerial Power The key to leadership*

Power: The Key to Leadership*Legitimate PowerThe authority that a manager has by virtue of his or her position in the firm.Example: the power to hire or fire employees.Reward PowerThe ability of a manager to give or withhold tangible and intangible rewards.Example: awarding pay raises or providing verbal praise for good performance.Effective managers use reward power to signal to employees that they are doing a good job.

Power: The Key to Leadership*Coercive PowerThe ability of a manager to punish others.Examples: verbal reprimand (scold), pay cuts, and dismissal Limited in effectiveness and application; can have serious negative side effects.Expert PowerPower that is based on special knowledge, skills, and expertise that the leader possesses.First-line and middle managers have the most expert power; most often consists of technical ability.

Power: The Key to Leadership*Referent PowerPower that comes from subordinates and coworkers respect for the personal characteristics of a leader which earns their loyalty and admiration.Usually held by and available for use by likable managers who are concerned about their workers.

Empowerment: An Ingredient in Modern ManagementEmpowermentThe process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes.Empowerment helps managers:Get workers involved in the decisions.Increase worker commitment and motivation.Have time to focus on other issues.

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Leadership ModelsTrait and Behavioral ModelsThese models are early approaches to leadership.

Sought to determine what effective leaders are like as people and what they do that makes them so effective.

The Trait Model focused on identifying personal characteristics that cause effective leadership.

It is established that certain personal characteristics do appear to be associated with effective leadership. *

Leadership ModelsThe traits and personal characteristics related to effective leadership areIntelligence, Knowledge and expertise, Dominance, Self-confidence, High Energy, Tolerance to stress, Integrity and honesty, Maturity

Leadership ModelsAre these traits alone can guarantee effective leadership?Answer is No. This led to search for new explanations for effective leadership.

Leadership ModelsBehavioral ModelRather than focusing on what effective leaders are like (the traits they possess), attention was diverted to what effective leaders actually do (i.e. their behaviors)

Result is behavioral model.

Two basic kinds of leader behaviors were identified consideration and initiating structure.

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Behavioral modelConsideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates.

Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.

Behavioral modelExample - Michael Teckel, manager of shoe store, uses bothInitiating structure when he establishes weekly work, lunch, and break schedules to ensure that store has enough salespeople on the floor

Behavioral modelConsideration when he encourages his staff to provide high-quality customer service and to avoid a hard-sell approach.

Both behaviors (initiating structure and consideration) are independent; managers can be high on both, low on both, or high on one and low on the other.

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