MGT100 Organization and Management

Topic VIIITopic VIII

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Leadership and Managing People

• ContentContent– Leadership and trustLeadership and trust– Human resource managementHuman resource management– SummarySummary

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Leadership and Trust

• Managers versus leadersManagers versus leaders• Theoretical background of Theoretical background of

leadershipleadership• Contemporary leadership issuesContemporary leadership issues

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Managers Compared to Leaders

Leadership is the process of influencing a group toward the achievement of goals.

ManagersManagers LeadersLeaders

Are appointed to their Are appointed to their positionposition

Are appointed or emerge Are appointed or emerge from within a work groupfrom within a work group

Can influence people only to Can influence people only to the extent of the formal the extent of the formal authority of their positionauthority of their position

Can influence other people Can influence other people and have managerial and have managerial authorityauthority

Do not Do not necessarily have the necessarily have the skills and capabilities to be skills and capabilities to be leadersleaders

Do not necessarily have Do not necessarily have the skills and capabilities to the skills and capabilities to be managersbe managers

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Theoretical Backgroundof Leadership

• Trait theories of leadershipTrait theories of leadership• Behavioral theories of leadershipBehavioral theories of leadership• Contingency theories of leadershipContingency theories of leadership• Emerging Approaches to LeadershipEmerging Approaches to Leadership

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Trait Theories of Leadership• Research focused on identifying Research focused on identifying

personal characteristics that personal characteristics that differentiated leaders from non-differentiated leaders from non-leaders was unsuccessfulleaders was unsuccessful

• Later research on the leadership Later research on the leadership process identified sprocess identified sixix traits traits associated with successful associated with successful leadershipleadership – Drive, the desire to lead, honesty and Drive, the desire to lead, honesty and

integrity, self-confidence, intelligence, integrity, self-confidence, intelligence, job-relevant knowledge, andjob-relevant knowledge, and

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Behavioral Theories of Leadership

• University of Iowa StudiesUniversity of Iowa Studies• The Ohio State studiesThe Ohio State studies• The leadership dimensions of the univThe leadership dimensions of the univ

ersity of Michigan studiesersity of Michigan studies• Two-dimensional leadership theory of Two-dimensional leadership theory of

the University of Texas studies the University of Texas studies

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Behavioral Theories of Leadership

• The Managerial Grid– Appraises leadership styles using two

dimensions• Concern for People• Concern for production

– Places managerial styles in five categories• Impoverished management• Task management• Middle-of-the-road management• Country club management• Team management

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Behavioral Theories of Leadership

Managerial Grid

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Contingency Theories of Leadership

• Fiedler model: LPCFiedler model: LPC• The Path-Goal theoryThe Path-Goal theory• The leader-participation modelThe leader-participation model• The situational leadershipThe situational leadership

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Contingency Theories of Leadership Fiedler Model

• Assumptions– A certain leadership style should be

most effective in different types of situations

– Leaders do not readily change leadership styles• Matching the leader to the situation or

changing the situation to make it favorable to the leader is required

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Contingency Theories of Leadership Findings of the Fiedler Model

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Environmental contingency factors:Environmental contingency factors:• Task structureTask structure• Formal authorityFormal authority• Work groupsWork groups

Environmental contingency factors:Environmental contingency factors:• Task structureTask structure• Formal authorityFormal authority• Work groupsWork groups

Subordinate contingency factors:Subordinate contingency factors:• Locus of controlLocus of control• ExperienceExperience• Perceived abilityPerceived ability

Subordinate contingency factors:Subordinate contingency factors:• Locus of controlLocus of control• ExperienceExperience• Perceived abilityPerceived ability

Outcomes:Outcomes:• PerformancePerformance• SatisfactionSatisfaction

Outcomes:Outcomes:• PerformancePerformance• SatisfactionSatisfaction

Leader behaviour:Leader behaviour:• DirectiveDirective• SupportiveSupportive• ParticipativeParticipative• Achievement:Achievement:

Contingency Theories of Leadership The Path-Goal theory

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• Developed by Developed by Vroom and YettonVroom and Yetton– Posits that leader behavior must be Posits that leader behavior must be

adjusted to reflect the task structureadjusted to reflect the task structure—whether it is routine, non-routine, or —whether it is routine, non-routine, or in between—based on a sequential in between—based on a sequential set of rules (contingencies) for set of rules (contingencies) for determining the form and amount of determining the form and amount of follower participation in decision follower participation in decision making in a given situationmaking in a given situation

Contingency Theories of Leadership The leader-participation model

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• Developed by Developed by Hersey and BlanchardHersey and Blanchard – An appropriate leadership style is An appropriate leadership style is

contingent on followers’ readiness contingent on followers’ readiness using two leadership dimensionsusing two leadership dimensions•Task behaviorTask behavior•Relationship behaviorRelationship behavior

• Leaders evaluate subordinates and Leaders evaluate subordinates and adopt an appropriate styleadopt an appropriate style

Contingency Theories of Leadership The situational leadership

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Contingency Theories of Leadership The situational leadership

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Emerging Approaches to Leadership

• Charismatic leadership theoryCharismatic leadership theory• Visionary leadershipVisionary leadership• Transactional leaders versus transfTransactional leaders versus transf

ormational leadersormational leaders

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Emerging Approaches to Leadership

• Transactional leadersTransactional leaders– GuidGuiding ing or motivator motivatinging their followers their followers

in the direction of established goals in the direction of established goals by clarifying role and task by clarifying role and task requirementsrequirements

• Transformational leadersTransformational leaders– ProvidProvidinging individualized individualized

consideration and intellectual consideration and intellectual stimulation, and possess charisma.stimulation, and possess charisma.

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Contemporary Leadership Issues

• Team leadershipTeam leadership• Gender differences and leadershipGender differences and leadership• Leaders and powerLeaders and power

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Team Leadership

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Gender Differences and Leadership

• Research findingsResearch findings– Males and females use different Males and females use different

stylesstyles

•Women tend to adopt a more Women tend to adopt a more democratic or participative style democratic or participative style unless in a male-dominated jobunless in a male-dominated job

•Women tend to use Women tend to use transformational leadershiptransformational leadership

•Men tend to use transactional Men tend to use transactional leadershipleadership

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Gender Differences and Leadership

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Five Sources of PowerFive Sources of PowerFive Sources of PowerFive Sources of Power

CoerciveCoerciveCoerciveCoercive RewardRewardRewardReward LegitimateLegitimateLegitimateLegitimate ExpertExpertExpertExpert ReferentReferentReferentReferent

Leadership power refers to the capacity Leadership power refers to the capacity of a leader to influence work actions orof a leader to influence work actions or decisionsdecisions

Leaders and Power

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Managing PowerManaging PowerLegitimate power:Legitimate power: The power a leader has as a result The power a leader has as a result

of his or her positionof his or her position

Coercive power:Coercive power: The power a leader has to punish The power a leader has to punish or controlor control

Reward power:Reward power: The power to give positive The power to give positive benefits or rewardsbenefits or rewards

Expert power:Expert power: The influence a leader can exert The influence a leader can exert as a result of his or her expertise, as a result of his or her expertise, skills, or knowledge.skills, or knowledge.

Referent power:Referent power: The power of a leader that arises The power of a leader that arises because of their desirable because of their desirable resources or admired personal resources or admired personal traitstraits

Leaders and Power

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Human Resource Management

• DefinitionDefinition• HRM activitiesHRM activities• The role of HRM in effective The role of HRM in effective

managementmanagement

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Summary

• Effective managers are usually Effective managers are usually people who are successful leaders people who are successful leaders or are able to manage the or are able to manage the leadership role in their organizationleadership role in their organization

• Developing successful leaders Developing successful leaders enhances worker and organizational enhances worker and organizational performance, while ineffective performance, while ineffective leadership can be disastrousleadership can be disastrous