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Chapter 14 Leadership

Leadership Revised

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JonesMcGraw-Hill/Irwin
Overview
What effective leadership is and the sources of power that enable managers to be effective leaders.
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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Leadership
Exact definition is difficult because it can be relative. Methods and manners can vary with circumstances and culture (both national and corporate). The situation can define the style that will succeed and context evolves (e.g., the rise of team structure and its effect on leadership style).
Using position, power, personality and persuasion to inspire, motivate and direct others to achieve group goals.
“Whatever makes others follow.”
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Personal Leadership Style
The specific ways managers choose to influence others reflects their personality and management style.
Managers at all levels need
to consciously develop
an effective leadership
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Leadership styles MAY vary among different countries or cultures.
European managers tend to be more people-oriented than American or Japanese managers.
Japanese managers are group-oriented and stress process control while U.S managers focus more directly on performance and goal-achievement.
Time horizons (short versus long) also are affected by cultures.
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Legitimate Power
The authority managers have by virtue of their position in the firm (hiring and firing)
Reward Power
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Coercive Power
Examples: verbal reprimand, pay cuts, dismissal
Limited effectiveness; can have negative side effects.
Expert Power
Power based on special knowledge, skills, and expertise.
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Referent Power
Power and loyalty that comes from subordinates’ and coworkers’ respect and admiration for a leader’s capability and personal characteristics
Usually gained by likable managers concerned about their workers as well as getting the job done properly
The most effective form of leadership
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Empowerment
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Frees managers to focus on other issues by delegating responsibility.
Usually delivers better results.
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Attempts to identify personal characteristics that cause effective leadership.
Research shows that certain personal characteristics appear to be connected to effective leadership.
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Consideration: 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 (example: forming a team)
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Fiedler’s Model
Effective leadership is contingent on both the characteristics of the leader and of the situation.
Leader style is the enduring, characteristic approach to leadership that a manager uses and does not readily change.
Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them.
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How favorable a situation is for leading to occur.
Leader-member relations—determines how much workers like and trust their leader.
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Combines considerations of leader-member relations, task structure, and position power to identify leadership situations.
Identifies situations where given types of managers might perform best.
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Cognitive Resource theory
Fiedler reconceptualized the original theory by initiating the role of stress.
Heresy and Blanchard Situational Theory: which focuses on the followers:
Readiness and willingness
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House’s Path-Goal Theory
A contingency model of leadership proposing that effective leaders can motivate subordinates by:
Clearly identifying the outcomes workers are trying to obtain from their jobs.
Rewarding workers with their desired outcomes in return for high performance and goal attainment
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Path-Goal identifies four leadership behaviors:
Directive behaviors: set goals, assign tasks, show how to do things.
Supportive behavior: look out for the worker’s best interest.
Participative behavior: give subordinates a say in matters that affect them.
Achievement-oriented behavior: setting challenging goals and believing in worker’s abilities.
Which to use depends on the nature of the
subordinates and the task.
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Leader member exchange theory
Theory that supports leaders creation of in groups and out groups: subordinates with in group status will; have higher performance ratings less turnover and greater job satisfaction.
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Relates leader behavior and participation in decision making based on contingency variables:
IMPORTANCE OF DECISION
INFORMATION HELD BY LEADER
WHETHER FOLLOWERS BUY INTO THE ORGANISATION GOLS
WHETHER AN AUTOCRATIC DECISION WOULD RECEIVE FOLLOWER COMMITMNET
WHETHER THERE IS LIKELY TO BE CONFLICT AMONG FOLLOWERS OVER SOLUTION ALTERNATIVES
WHETHER THE FOLLOWERS HAVE NECESSARY INFORMATION TO MAKE GOOD DECISION
TIME CONSTRAINT ON THE LEADER THAT MAY LIMIT FOLLOWER INVOLVEMENT
WHETHER COST TO BRING GEOGRAPHICALLY DISPERSED MEMBER IS JUSTIFIED
IMPORTANCE OF THE LEADER OF MINIMISING THE TIME IT TAKES TO MAKE DECISION
IMPORTANCE OF USING PARTICIPATION AS A TOOL FOR DEVELOPING FOLLOWER DECISION MAKING SKILL
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SWEDEN AND FINLAND:TEAM SPIRIT.
GERMANY AND AUSTRIA: AUTHORITY BASED LEADERS
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ASIAN PERSPECTIVE
INDIA: HIGH SCORE OF 77 IN TERMS OF POWER DISTANCE (56.5)
LONG TERM ORIENATATION: 61(48)
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FRANCE: BUREAUCRATIC)
CHINA: HIGH PERFORMANCE ORIENTATION,POLITE CONSIDERATE AND UNSELFISH
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Leadership Substitute
Acts in place of a leader, making leadership unnecessary. Possible substitutes can be found in skilled, motivated subordinates or the extent to which work is interesting and fun.
Worker empowerment or self-managed work teams reduce leadership needs.
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Transformational Leadership
Leadership that:
Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback.
Makes subordinates aware of their own needs for personal growth and development.
Motivates workers to work for the good of the organization, not just themselves.
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An enthusiastic, self-confident transformational leader able to paint a vision of how good things could be by:
Clearly communicating excitement to subordinates.
Openly sharing information so that everyone is aware of problems and the need for change.
Empowering workers to help with solutions.
Developing employees by helping them build skills.
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Transactional Leadership
Transactional Leaders
Use their reward and coercive powers to exchange rewards for performance and punish failure.
Push subordinates to change, but do not seem to change themselves.
Do not have the “vision” of a transformational leader.
Can be effective, but not the best way.
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Developmental Consideration
Behavior a leader engages in to support and encourage followers and help them develop and
grow on the job.
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Gender and Leadership
The number of top-level women managers is rising but still relatively low
Stereotypes (and some recent research) suggest women are more supportive and concerned with interpersonal relations while men are more task-focused.
Women may be perceived as more participative than men because they adopt a participative approach to overcome resistance to them as managers.
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Trust
Is a positive expectation that another will not act opportunistically
Key Dimension( Integrity, competence, conistenency,loyalty)
Three type of trust: