Chapter 15 Leadership Leadership Different leaders behave in different ways – style, need, situation  There is probably no topic more important to business success today than leadership leadership involves is occurs among people the use of influence used to attain goals Manager’s Challenge: Aramark Corp Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leadership Topics Chapter 15 Different leaders behave in different ways – style, need, situation  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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Nature of Leadership travel the globe solving problems  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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leadership versus Management Management Promotes stability, order and problem solving within existing organizational structure and systems Leadership Promotes vision, creativity, and change Takes care of where you are L M Takes you to a new place Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leader versus Manager Qualities Leader Qualities Manager Qualities 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 Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leadership Traits Traits = personal characteristics  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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Personal Characteristics of Leaders Physical Characteristics Personality Self-confidence Energy Honesty & integrity Physical stamina Enthusiasm Desire to lead Social Background Independence Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity 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 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 Behavioral Approaches Michigan Studies At about the same time as Ohio State Studies  University of Michigan compared the behavior of effective and ineffective supervisors Employee-centered leaders Job-centered leaders 10 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Contingency Approaches Relationship between leadership style and situation Fiedler’s Contingency Theory  Hersey and Blanchard Situational Theory  Evans and House Path Goal Theory  13 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Fiedler’s Classification of Situation Favorableness 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 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 14 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Hersey-Blanchard’s Situational Leadership Theory Links leader’s behavioral style with subordinates’ task readiness Follower Characteristics Low Readiness Level 15 Appropriate Leader Style Low Readiness Level Telling Moderate Readiness Level Selling High Readiness Level Participating Very High Readiness Level Delegating Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Path Goal Theory Source: Based on Bernard M Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), 26-40 16 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Path-Goal Theory Leader Behaviors Classification of (4) leader behaviors   - 17 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 Planning, making schedules, setting performance goals, and behavior standards Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Path-Goal Theory Leaders Behaviors Classification of (4) leader behaviors  …  … … 18 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 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Path-Goal Situational Contingencies  Personal characteristics of group members  The work environment Degree of task structure  Nature of formal authority system  Work group itself  19 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152 20 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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 21 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 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  22 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leading Change Charismatic Leaders  The ability to inspire  Motivate people to more than they would normally  Tend to be less predictable than transactional leaders  Create an atmosphere of change  May be obsessed by visionary ideas 23 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leading Change  Transformational   24 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 Sources of Power      25 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 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? 26 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved Leadership in Turbulent Times  The concept and practice of leadership continues to grow and change  Post-heroic approach  Servant leadership  Level leadership  Interactive leadership  E-leadership  Moral leadership 27 Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved ... 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... 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... Leadership versus Management Management Promotes stability, order and problem solving within existing organizational structure and systems Leadership Promotes vision, creativity, and change Takes