Chapter 11Leadership inOrganizationsPowerPoint Presentation by Charlie CookCopyright 2005 South-Western. All rights reserved. Learning ObjectivesAfter reading and studying this chapter and doing the exercises, you should be able to:1.Differentiate between leadership and management.2.Describe key leadership traits, styles, and behaviors.3.Explain the basics of four different contingency theories of leadership.4.Present an overview of transformational and charismatic leadership.5.Explain how 360-degree feedback is used to improve leadership effectiveness.6.Identify forces that can sometimes decrease the importance of leadership.2Copyright 2005 South-Western. All rights reserved. The Nature of LeadershipLeadershipIs defined as the ability inspire confidence and support among the people on whose competence and commitment performance depends.Involves influencing others to achieve objectives important to them and the organization.Contributes to organizational effectiveness through the use of desirable personal attributes to achieve good results.vEffective Leadership = Attributes x Results3Copyright 2005 South-Western. All rights reserved. Leaders versus ManagersEXHIBIT 11-1Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review (March 1994): 12. Copyright 1994 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http:/www. amanet.org.4Copyright 2005 South-Western. All rights reserved. Leadership Traits and CharacteristicsCognitive skillsMental abilities and knowledgeProblem-solving skillsImagination ,creativity, and a willingness to experimentTechnical and profession competence (knowledge of the business)Personality traitsEnthusiasmSelf-awarenessSelf-confidenceTrustworthinessEmotional intelligenceNeeds for power and achievementA sense of humor5Copyright 2005 South-Western. All rights reserved. Leadership Styles and BehaviorBehavioral approach to leadershipAttempts to specify how the behaviors of effective leaders differs from less-effective leaders.Assumes that leaders are relatively consistent in how they attempt to influence group members.Key concept is “leadership style”the consistent pattern of behavior that characterizes a leader.Recognizes that some leaders modify their leadership style as the situation requires.6Copyright 2005 South-Western. All rights reserved. Studies on Leadership DimensionsOhio State UniversityInitiating structurevThe degree to which the leader establishes structure for group members: assigning task, specifying procedures, scheduling work, and clarifying expectations.ConsiderationvThe degree to which the leader creates an environment of emotion support, warmth, friendliness, and trust.7Copyright 2005 South-Western. All rights reserved. Leadership Dimensions (contd)Ohio State UniversityResearch findings:vHigh consideration in leaders was associated with low turnover and high job satisfaction.vLeaders high on initiating structure were rated highly by their superiors and had higher-producing work groups.8Copyright 2005 South-Western. All rights reserved. Leadership Styles Based on a Combination of Initiating Structure and ConsiderationEXHIBIT 11-29Copyright 2005 South-Western. All rights reserved. Studies on Leadership Dimensions (contd)University of MichiganProduction-centered managersvSet tight work standards, organized tasks carefully, prescribed work methods, and supervised closely.Employee-centered managersvEncouraged participative goal setting and decision-making, fostered high performance by engendering trust and mutual respect.10Copyright 2005 South-Western. All rights reserved. Studies on Leadership DimensionsUniversity of MichiganResearch findings:vEmployee-centered managers had the most productive work groups.vThe most effective leaders had supportive relationships with employees, used group decision making and encouraged employee goal setting.11Copyright 2005 South-Western. All rights reserved. Managing PolaritiesPeter Koestenbaum on leadershipThe central attribute of leadership is the ability to manage polarity extremes of positions and interests.12Copyright 2005 South-Western. All rights reserved. The Leadership GridThe Leadership GridDescribes leadership style as concerns (attitudes) rather than actual behavior.vConcern for production includes results, bottom-line performance, profits, and mission.vConcern for people includes group members and coworkers.Assumes that opportunistic leaders shift to any Grid style to achieve personal gain and self-promotion.vBest style is team managementat 9,9 on the Grid (high concern for both production and people).13Copyright 2005 South-Western. All rights reserved. The LeadershipGrid Figure*Impoverished Management:Exertion of minimum effort to getrequired work done is appropriate tosustain organization membership.Country Club Management:Thoughtful attention to the needs ofthe people for satisfying relationshipsleads to a comfortable, friendlyorganization atmosphere and worktempo.Team Management:Work accomplishment is fromcommitted people; interdependencethrough a common stake inorganization purpose leads torelationships of trust and respect.Authority-Compliance Management:Efficiency in operations results fromarranging conditions of work in such away that human elements interfere to aminimum degree.Middle of the Road Management:Adequate organization performance is possible throughbalancing the necessity to get work out while maintainingmorale of people at a satisfactory level.9,11,91,19,95,59876543211LowHighHighLowConcern for ResultsConcern for Results23485679*Formerly the Managerial Grid by Robert R. Blake and Jane S. Mouton.Source: Robert R. Blake and Anne Adams McCarse, Leadership DukennasGrid Solutions, Houston: Gulf Publishing Company, Grid figure: p. 29, Paternalism/ Materialism figure: p. 30, Opportunism figure: p. 31. Copyright 1991 by Scientific Methods, Inc. Reproduced by permission of the owners. 14Copyright 2005 South-Western. All rights reserved. The Leadership Grid Figure*9,11,99 + 99 + 9 Paternalism/MaternalismRewards and approval are bestowed topeople in return for loyalty and obedience;failure to comply leads to punishment.Opportunism1,19,15,51,99,9In Opportunistic Management, people adapt and shift to any Gridstyle needed to gain the maximum advantage. Performance occursaccording to a system of selfish gain. Effort is given only for anadvantage for personal gain.9,11,99 + 9*Formerly the Managerial Grid by Robert R. Blake and Jane S. Mouton.Source: Robert R. Blake and Anne Adams McCarse, Leadership DukennasGrid Solutions, Houston: Gulf Publishing Company, Grid figure: p. 29, Paternalism/Materialism figure: p. 30, Opportunism figure: p. 31. Copyright 1991 by Scientific Methods, Inc. Reproduced by permission of the owners. 15Copyright 2005 South-Western. All rights reserved. The Leader-Member Exchange Model (LMX) (contd)Leaders do not relate to each group member in the same manner.Leaders develop unique working relationships with each group member.vIn-groups are given additional rewards, responsibilities, and trust in exchange for their loyalty and performance.vOut-groups have a more formal (traditional) superior-subordinate relationship with the leader.16Copyright 2005 South-Western. All rights reserved. The Leader-Member Exchange Model (LMX) (contd)Leaders do not relate to each group member in the same manner.Research findings:vIn-group membership is beneficial to its members.vHigh-quality leader-member exchanges improve delegation.vSupervisors are not overly influenced by the exchanges.17Copyright 2005 South-Western. All rights reserved. Contingency Theories of LeadershipContingency (Situational) leadershipAttempts to specify the conditions under which various leadership styles would lead to the best results. Assumes the best style of leadership depends on:vThe leaders relations with subordinatesvCharacteristics of the subordinatesvFactors in the work setting.18Copyright 2005 South-Western. All rights reserved. Contingency Theories (contd)Fiedlers Contingency Theory of LeadershipAssumes the best style of leadership is determined by the leaders work situation.Uses the least-preferred coworker (LPC) scale to measure the leaders style.vMeasures a managers relationship to a referent (least-preferred) coworker.vPositive LPC descriptions indicate relationship-oriented management styles.vNegative LPC descriptions indicate task-oriented management styles.19Copyright 2005 South-Western. All rights reserved. Contingency Theories (contd)Fiedlers Contingency Theory of LeadershipSituational controlvThe degree to which the leader can control and influence the outcomes of group effort.Measurements of situational control are based on:vLeader-member relations (good to bad)vTask structure (well to ill-defined)vPosition power (the leaders ability to reward and control)20Copyright 2005 South-Western. All rights reserved. Summary of Findings from Fiedlers Contingency TheoryEXHIBIT 11-321Copyright 2005 South-Western. All rights reserved. Implications of Fielders theory:Leader effectiveness can be increased by:Improving relationships with group members.Enhancing task structure by providing more guidelines and instructions.Requesting more position power from the organization.22Copyright 2005 South-Western. All rights reserved. Contingency Theories (contd)The Path-Goal Theory of LeadershipSpecifies what a leader must do to achieve high morale and productivity in a given situation.vFocuses on helping employees find the right path to goal attainment.vAssumes that the leader will choose the right leadership style to match the contingencies of a particular situation.vIs based on expectancy theory (motivation, satisfaction, and performance).23Copyright 2005 South-Western. All rights reserved. Path-Goal Theory (contd)Leadership styles to meet situational demands:Directive: initiating structure, setting guidelines on standards, and conveying expectations.Supportive leadership: showing concern for the well-being of group members and developing mutually satisfying relationships.Participation: consulting with group members and then using this input for decision making.Achievement-oriented leadership: setting challenging goals, promoting work improvement, setting high expectations, and expecting group members to assume responsibility.24Copyright 2005 South-Western. All rights reserved. The PathGoal Theory of LeadershipEXHIBIT 11-425Copyright 2005 South-Western. All rights reserved. Contingency Relationships in PathGoal LeadershipEXHIBIT 11-5Leadership Style Situation in which Appropriate Directive Positively affects satisfaction and expectancies of subordinates working on ambiguous tasks. Negatively affects satisfaction and expectancies of subordinates working on clearly defined tasks. Supportive Positively affects satisfaction of subordinates working on dissatisfying, stressful, or frustrating tasks. ParticipativePositively affects satisfaction of subordinates who are ego-involved with nonrepetitive tasks. Achievement-oriented Positively affects confidence that effort will lead to effective performance of subordinates working on ambiguous and nonrepetitive tasks.26Copyright 2005 South-Western. All rights reserved. Contingency Theories (contd)The Situational Leadership ModelExplains how a leader chooses a leadership style that is appropriate to the readiness of group members.Readiness: the extent to which a group member has the ability and willingness or confidence to accomplish a task.vAs the readiness of group members increases, a leader should rely more on relationship-related leadership behaviors and less on task-related leadership behaviors.27Copyright 2005 South-Western. All rights reserved. Contingency Theories (contd)The Normative Decision Model (formerly the Leader-Participation Model)Leadership is a decision-making process in which the leader examines the situation and chooses the most effective decision-making style for the situation.28Copyright 2005 South-Western. All rights reserved. The Normative Decision ModelFive styles of decision-making:Decide (manager alone)Consult (members individually)Consult (group advises)Facilitate (decide together)Delegate (group decides)29Copyright 2005 South-Western. All rights reserved. The Normative Decision ModelFor time-driven group problems, the decision-making style chosen depends on:Decision significance to the success of the project.Importance of commitment of team members.Leaders expertise in relation to the problem.Likelihood of commitment by team to a solo decision.Group support (team) for the organizations objectives.Team competence in working together to solve the problem.30Copyright 2005 South-Western. All rights reserved. The Time-Driven ModelEXHIBIT 11-7Source: Victor H. Vrooms Time-Driven Model reproduced from A Model of Leadership Style, copyright 1998.31Copyright 2005 South-Western. All rights reserved. Transformational LeadershipTransformational leaderHelps organizations and people make positive changes in the way they conduct their activities.Is closely linked to strategic leadership.Is involved in sweeping positive changes.32Copyright 2005 South-Western. All rights reserved. Transformational Leadership (contd)Transformations:Raising peoples level of consciousness.Getting people to transcend their self-interests.Focusing people on the quest for self-fulfillment.Helping to develop a long-range perspective.Helping people understand the need for change.Investing managers with a sense of urgency.Committing to greatness.33Copyright 2005 South-Western. All rights reserved. Dimensions and Corresponding Behaviors of Transformational LeadershipVision:Communicates a clear and positive vision of the futureStaff Development :Treats staff as individuals; supports and encourages their developmentSupportive leadership:Gives encouragement and recognition to staffEmpowerment:Fosters trust, involvement, and cooperation among team membersInnovative Thinking:Encourages thinking about problems in new ways and questions assumptionsLead by Example:Is clear about his or her values, and practices what he or she preachesCharisma:Instills pride and respect in others and inspires me by being highly competentEXHIBIT 11-8Source: Sally A. Carless, Alexander J. Wearing, and Leon Mann, “A Short Measure of Transformational Leadership,” Journal of Business and Psychology, Spring 2000, p. 396.34Copyright 2005 South-Western. All rights reserved. Charismatic LeadershipCharismaThe ability to lead others based on personal charm, magnetism, inspiration, and emotion.vCharisma is in the eyes of the beholder.Key characteristics of charismatics:They have vision.They are masterful communicators.They inspire trust.They are energetic.They manage their impressions.35Copyright 2005 South-Western. All rights reserved. 360-Degree Feedback for Improving Leadership Effectiveness360-Degree feedbackIs a formal evaluation system for use in improving leadership effectiveness.Input is in the form of a 360-degree survey of people who work for and with the supervisor.Self-ratings are compared to ratings of others.vDifferences in the two ratings indicate performance area opportunities for improvement.36Copyright 2005 South-Western. All rights reserved. Substitutes for LeadershipLeadership may unnecessary, detrimental or of no consequence in certain circumstances.Substitutes for Leadership:Group member characteristicsvHighly capable persons or groups (followers) can function with less leadership.vEffective followers are self-managers, are committed, have competence and focus, and possess courage.37Copyright 2005 South-Western. All rights reserved. Substitutes for Leadership (contd)Substitutes for leadership:Task CharacteristicsvHighly standardized tasks that provide feedback and are intrinsically satisfying can substitute for leadership.Organizational factorsvExplicit plans with well-defined goals that are carried out by cohesive groups reduce the need for leadership.38Copyright 2005 South-Western. All rights reserved. Review: Approaches to LeadershipDeveloping the right traitsInitiating structure and consideration dimensions of leadershipThe Leadership GridThe leadermember exchange (LMX) modelFiedlers contingency theory of leadershipThe pathgoal theory of leadership The situational leadership modelThe normative decision modelTransformational leadershipCharismatic leadership360-degree feedbackSubstitutes for leadership39Copyright 2005 South-Western. All rights reserved. Choosing an Appropriate Leadership Model1.Carefully diagnose the situation.2.Choose a leadership approach that best fits the situational deficiencies or opportunities.3.Observe the people to be led; come to understand their interests, goals, and concerns.4.Apply the chosen leadership approach.40Copyright 2005 South-Western. All rights reserved.