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Leadership
Chapter
15
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
2
Leadership
 There is probably no topic more
important to business success
today than leadership
leadership occurs among people
involves the use of influence
is used to attain goals
Manager’s Challenge: Aramark Corp.
Different leaders behave in different ways – style, need, situation
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
3
Leadership
 Leadership definition
 Differences in leadership and management
 Theories of leadership effectiveness
 Charismatic and transformational leadership
 How leaders use power and influence to get
things done
 New leadership approaches for today’s
turbulent environment
Different leaders behave in different ways – style, need, situation
Topics
Chapter 15
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
4
Nature of Leadership
 The ability to influence people toward the attainment
of organizational goals.
 Leadership is reciprocal, occurring among people.
 Leadership is a “people” activity, distinct from
administrative paper shuffling or problem-solving
activities.
 Leadership is dynamic and involves the use of
power.
travel the globe solving
problems
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
5
Leadership versus Management
Management
Promotes
stability, order
and problem
solving within
existing
organizational
structure and
systems
Leadership
Promotes
vision,
creativity, and
change
M L
Takes care of where you are Takes you to a new place
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
6
Leader versus Manager Qualities
Manager Qualities
Leader Qualities
Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12
SOUL
Visionary
Passionate
Creative
Flexible
Inspiring
Innovative
Courageous
Imaginative
Experimental
Initiates change
Personal power
MIND
Rational
Consulting
Persistent
Problem solving
Tough-minded
Analytical
Structured
Deliberate
Authoritative
Stabilizing
Position power
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
7
Leadership Traits
 Traits - early efforts to understand
leadership success focused on leader’s
personal characteristics
 Great man approach - early research
focused on leaders who had achieved a level
of greatness
– Find out what made them great
– Find people with same traits
Traits = personal characteristics
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
8
Personal Characteristics of Leaders
Physical Characteristics
Energy
Physical stamina
Social Background
Education
Mobility
Intelligence and Ability
Judgment,
decisiveness
Knowledge
Intelligence, cognitive
ability
Personality
Self-confidence
Honesty & integrity
Enthusiasm
Desire to lead
Independence
Work-related Characteristics
Achievement drive
Drive to excel
Conscientiousness in pursuit of goals
Persistence against obstacles, tenacity
Social Characteristics
Sociability, interpersonal skills
Cooperativeness
Ability to enlist cooperation
Tact, diplomacy
Source: Adapted from Bernard M. Bass, Stogdill’s Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75-76. This adaptation appeared in R. Albanese and D. D. Van Fleet,
Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
9
Behavioral Approaches
Ohio State Studies
Consideration: - people-oriented behavior
– Is mindful of subordinates
– Establishes mutual trust
– Provides open communication
– Develops teamwork
Initiating Structure: task-oriented behavior
– Directs subordinate work activities toward goal attainment
– Typically gives instructions, spends time planning, and
emphasizes deadlines
– Provides explicit schedules of work activities
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
10
Behavioral Approaches
Michigan Studies
 University of Michigan compared the
behavior of effective and ineffective
supervisors
 Employee-centered leaders
 Job-centered leaders
At about the same time as Ohio State Studies
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
11
The Leadership Grid
 Two-dimensional leadership theory that
measures the leader’s concern for people
and for production
 Builds on the work of Ohio State and
Michigan studies
Blake and Mouton
Experiential Exercise: T-P Leadership Questionnaire
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
12
Leadership Grid
High
High
Low
Low
Concern for Production
Concern
for
People
Source: The Leadership Grid Figure from Robert R. Blake and Anne Adams McCanse, Leadership Dilemmas-Grid Solutions (Houston: Gulf, 1991), 29.
Copyright 1991, by Scientific Methods, Inc. Reproduced by permission of the owners.
1,9
Country Club Management
Thoughtful attention to the
needs of people for satisfying
relationships leads to a com-
fortable, friendly organization
atmosphere and work tempo.
Impoverished
Management
Exertion of minimum effort
to get required work done
is appropriate to sustain
organization membership.
1,1
9,9
Team Management
Work accomplishment is from
committed people; interdependence
through a “common stake” in
organization purpose leads to
relationships of trust and respect.
5,5
Middle-of-the-Road Management
Adequate organization performance is
possible through balancing the necessity
to get out work with maintaining morale of
people at a satisfactory level.
Authority-Compliance
Efficiency in operations results
from arranging conditions of
work in such a way that
human elements interfere to a
minimum degree.
9,1
The Leadership Grid
5,5
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
13
Contingency Approaches
 Fiedler’s Contingency
Theory
 Hersey and Blanchard
Situational Theory
 Evans and House Path
Goal Theory
Relationship between leadership style and situation
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
14
Fiedler’s Classification of
Situation Favorableness
Source: Fred E. Fiedler, “The Effects of Leadership Training and Experience: A Contingency Model Interpretation,” Administrative Science Quarterly 17 (1972), 455. Reprinted by permission
of Administrative Science Quarterly.
Leaders needs to know
Whether they have a relationship- or task-oriented style
Should diagnose the situation and determine the favorableness
of the following three areas
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
15
Hersey-Blanchard’s Situational
Leadership Theory
Links leader’s behavioral style with subordinates’ task readiness
Low Readiness Level
Very High Readiness Level
High Readiness Level
Moderate Readiness Level
Low Readiness Level
Follower Characteristics Appropriate Leader Style
Telling
Selling
Participating
Delegating
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
16
Path Goal Theory
Source: Based on Bernard M. Bass, “Leadership:
Good, Better, Best,” Organizational Dynamics 13
(Winter 1985), 26-40.
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
17
Path-Goal Theory
Leader Behaviors
 Supportive leadership:
- Leader behavior that shows concern for subordinates
- Open, friendly, and approachable
- Creates a team climate
- Treats subordinates as equals
 Directive leadership:
- Tells subordinates exactly what they are supposed to
do
- Planning, making schedules, setting performance
goals, and behavior standards
Classification of (4) leader behaviors
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
18
Path-Goal Theory
Leaders Behaviors
 Participative leadership:
… Consults with his or her subordinates about decisions
 Achievement-oriented leadership:
… Sets clear and challenging goals for subordinates
… Behavior stresses high-quality performance
Classification of (4) leader behaviors
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
19
Path-Goal
Situational Contingencies
 Personal characteristics of group
members
 The work environment
 Degree of task structure
 Nature of formal authority system
 Work group itself
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
20
Path-Goal Situations &
Preferred Leader Behavior
Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
21
Substitutes for Leadership
 Substitute = situational variable that makes
a leadership style unnecessary or redundant
 Neutralizer = situational variable that
counteracts a leadership style and prevents
the leader from displaying certain behaviors
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
22
Leading Change
Transactional Leaders
 Clarify the role and task requirements of
subordinates
 Initiate structure
 Provide appropriate rewards
 Display consideration for subordinates
 Meet the social needs of subordinates
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
23
Leading Change
Charismatic Leaders
 The ability to inspire
 Motivate people to do more than they would
normally do
 Tend to be less predictable than transactional
leaders
 Create an atmosphere of change
 May be obsessed by visionary ideas
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
24
Leading Change
 Transformational Leader
 Similar to charismatic leaders
 Distinguished by their special ability to bring about
innovation and change by
 Recognizing followers’ needs and concerns
 Helping them look at old problems in new ways
 Encouraging them to question the status quo
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
25
Sources of Power
 Legitimate Power: power coming from a formal
management position.
 Reward Power: stems from the authority to bestow
rewards on other people.
 Coercive Power: the authority to punish or
recommend punishment.
 Expert Power: leader’s special knowledge or skill
regarding the tasks performed by followers.
 Referent Power: personality characteristics that
command subordinates’ identification, respect, and
admiration so they wish to emulate the leader
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
26
Post-Heroic Leadership
for Turbulent Times
 The turbulence and uncertainty of the
environment in which most organizations are
operating is a significant influence on
leadership styles
 Post-heroic leader’s major characteristic is
humility
Ethical Dilemma: Does Wage Reform Start at the Top?
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
27
Leadership in Turbulent Times
 The concept and practice of leadership
continues to grow and change
 Post-heroic approach
 Servant leadership
 Level 5 leadership
 Interactive leadership
 E-leadership
 Moral leadership

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Leadership.ppt

  • 2. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 Leadership  There is probably no topic more important to business success today than leadership leadership occurs among people involves the use of influence is used to attain goals Manager’s Challenge: Aramark Corp. Different leaders behave in different ways – style, need, situation
  • 3. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 3 Leadership  Leadership definition  Differences in leadership and management  Theories of leadership effectiveness  Charismatic and transformational leadership  How leaders use power and influence to get things done  New leadership approaches for today’s turbulent environment Different leaders behave in different ways – style, need, situation Topics Chapter 15
  • 4. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 4 Nature of Leadership  The ability to influence people toward the attainment of organizational goals.  Leadership is reciprocal, occurring among people.  Leadership is a “people” activity, distinct from administrative paper shuffling or problem-solving activities.  Leadership is dynamic and involves the use of power. travel the globe solving problems
  • 5. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 5 Leadership versus Management Management Promotes stability, order and problem solving within existing organizational structure and systems Leadership Promotes vision, creativity, and change M L Takes care of where you are Takes you to a new place
  • 6. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 6 Leader versus Manager Qualities Manager Qualities Leader Qualities Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12 SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal power MIND Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing Position power
  • 7. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 7 Leadership Traits  Traits - early efforts to understand leadership success focused on leader’s personal characteristics  Great man approach - early research focused on leaders who had achieved a level of greatness – Find out what made them great – Find people with same traits Traits = personal characteristics
  • 8. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 8 Personal Characteristics of Leaders Physical Characteristics Energy Physical stamina Social Background Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Personality Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy Source: Adapted from Bernard M. Bass, Stogdill’s Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75-76. This adaptation appeared in R. Albanese and D. D. Van Fleet, Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).
  • 9. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 9 Behavioral Approaches Ohio State Studies Consideration: - people-oriented behavior – Is mindful of subordinates – Establishes mutual trust – Provides open communication – Develops teamwork Initiating Structure: task-oriented behavior – Directs subordinate work activities toward goal attainment – Typically gives instructions, spends time planning, and emphasizes deadlines – Provides explicit schedules of work activities
  • 10. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 10 Behavioral Approaches Michigan Studies  University of Michigan compared the behavior of effective and ineffective supervisors  Employee-centered leaders  Job-centered leaders At about the same time as Ohio State Studies
  • 11. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 11 The Leadership Grid  Two-dimensional leadership theory that measures the leader’s concern for people and for production  Builds on the work of Ohio State and Michigan studies Blake and Mouton Experiential Exercise: T-P Leadership Questionnaire
  • 12. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 12 Leadership Grid High High Low Low Concern for Production Concern for People Source: The Leadership Grid Figure from Robert R. Blake and Anne Adams McCanse, Leadership Dilemmas-Grid Solutions (Houston: Gulf, 1991), 29. Copyright 1991, by Scientific Methods, Inc. Reproduced by permission of the owners. 1,9 Country Club Management Thoughtful attention to the needs of people for satisfying relationships leads to a com- fortable, friendly organization atmosphere and work tempo. Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. 1,1 9,9 Team Management Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect. 5,5 Middle-of-the-Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. Authority-Compliance Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 9,1 The Leadership Grid 5,5
  • 13. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 13 Contingency Approaches  Fiedler’s Contingency Theory  Hersey and Blanchard Situational Theory  Evans and House Path Goal Theory Relationship between leadership style and situation
  • 14. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 14 Fiedler’s Classification of Situation Favorableness Source: Fred E. Fiedler, “The Effects of Leadership Training and Experience: A Contingency Model Interpretation,” Administrative Science Quarterly 17 (1972), 455. Reprinted by permission of Administrative Science Quarterly. Leaders needs to know Whether they have a relationship- or task-oriented style Should diagnose the situation and determine the favorableness of the following three areas
  • 15. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 15 Hersey-Blanchard’s Situational Leadership Theory Links leader’s behavioral style with subordinates’ task readiness Low Readiness Level Very High Readiness Level High Readiness Level Moderate Readiness Level Low Readiness Level Follower Characteristics Appropriate Leader Style Telling Selling Participating Delegating
  • 16. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 16 Path Goal Theory Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), 26-40.
  • 17. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 17 Path-Goal Theory Leader Behaviors  Supportive leadership: - Leader behavior that shows concern for subordinates - Open, friendly, and approachable - Creates a team climate - Treats subordinates as equals  Directive leadership: - Tells subordinates exactly what they are supposed to do - Planning, making schedules, setting performance goals, and behavior standards Classification of (4) leader behaviors
  • 18. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 18 Path-Goal Theory Leaders Behaviors  Participative leadership: … Consults with his or her subordinates about decisions  Achievement-oriented leadership: … Sets clear and challenging goals for subordinates … Behavior stresses high-quality performance Classification of (4) leader behaviors
  • 19. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 19 Path-Goal Situational Contingencies  Personal characteristics of group members  The work environment  Degree of task structure  Nature of formal authority system  Work group itself
  • 20. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 20 Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.
  • 21. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 21 Substitutes for Leadership  Substitute = situational variable that makes a leadership style unnecessary or redundant  Neutralizer = situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors
  • 22. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 22 Leading Change Transactional Leaders  Clarify the role and task requirements of subordinates  Initiate structure  Provide appropriate rewards  Display consideration for subordinates  Meet the social needs of subordinates
  • 23. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 23 Leading Change Charismatic Leaders  The ability to inspire  Motivate people to do more than they would normally do  Tend to be less predictable than transactional leaders  Create an atmosphere of change  May be obsessed by visionary ideas
  • 24. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 24 Leading Change  Transformational Leader  Similar to charismatic leaders  Distinguished by their special ability to bring about innovation and change by  Recognizing followers’ needs and concerns  Helping them look at old problems in new ways  Encouraging them to question the status quo
  • 25. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 25 Sources of Power  Legitimate Power: power coming from a formal management position.  Reward Power: stems from the authority to bestow rewards on other people.  Coercive Power: the authority to punish or recommend punishment.  Expert Power: leader’s special knowledge or skill regarding the tasks performed by followers.  Referent Power: personality characteristics that command subordinates’ identification, respect, and admiration so they wish to emulate the leader
  • 26. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 26 Post-Heroic Leadership for Turbulent Times  The turbulence and uncertainty of the environment in which most organizations are operating is a significant influence on leadership styles  Post-heroic leader’s major characteristic is humility Ethical Dilemma: Does Wage Reform Start at the Top?
  • 27. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 27 Leadership in Turbulent Times  The concept and practice of leadership continues to grow and change  Post-heroic approach  Servant leadership  Level 5 leadership  Interactive leadership  E-leadership  Moral leadership