Chapter 17

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  • 1. Chapter 17 Leadership
  • 2. What Is Leadership? After reading these sections, you should be able to:
    • explain what leadership is.
    • describe who leaders are and what effective leaders do.
  • 3. Leadership Substitutes for Leadership Differences Between Leaders and Managers 1.1
  • 4. Leaders versus Managers MANAGERS Do things right Status quo Short-term Means Builders Problem solving LEADERS Do the right thing Change Long-term Ends Architects Inspiring & motivating Adapted from Exhibit 17.1 1.1
  • 5. Substitutes for Leadership
    • Leadership substitutes
      • subordinate, task, or organizational characteristics that make leaders redundant or unnecessary
    • Leadership neutralizers
      • subordinate, task, or organizational characteristics that interfere with a leader’s actions
    • Leaders don’t always matter
      • Poor leadership is not the cause of every organizational crisis
    1.2
  • 6. Leadership Substitutes and Neutralizers Characteristic People-Related Leadership Behaviors Task-Related Leadership Behaviors Subordinate Characteristics Ability, experience, training, knowledge Need for independence Professional orientation Indifference toward organizational rewards Neutralize Neutralize Substitute, Neutralize Neutralize Substitute, Neutralize Neutralize Substitute, Neutralize Neutralize Task Characteristics Unambiguous and routine tasks Performance feedback provided by the work itself Intrinsically satisfying work No effect No effect Substitute, Neutralize Substitute, Neutralize Substitute, Neutralize Neutralize Organizational Characteristics Formalization, meaning specific plans, goals, and areas of responsibility Inflexibility, meaning rigid, unbending rules and procedures Highly specified staff functions Cohesive work groups Organizational rewards beyond a leader's control Spatial distance between supervisors and subordinates No effect No effect No effect Substitute, Neutralize Neutralize Neutralize Neutralize Neutralize Neutralize Substitute, Neutralize Neutralize Neutralize
  • 7. Who Leaders Are and What Leaders Do Leadership Traits Leadership Behavior 2
  • 8. Leadership Traits Adapted from Exhibit 17.3 2.1 Leadership Traits Desire to Lead Honesty and Integrity Drive Self- Confidence Emotional Stability Cognitive Ability Knowledge of the Business
  • 9. Leadership Behaviors 2.2 Initiating Structure The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. Consideration The extent to which a leader is friendly, approachable, and supportive and shows concern for employees.
  • 10. Blake/Moulton Leadership Grid Adapted from Exhibit 17.4 2.2 1,9 Country Club Management 9,9 Team Management 1,1 Impoverished Management 9,1 Authority-Compliance 5,5 Middle of the Road 5,5 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 Concern for People Concern for Production High Low Low High
  • 11. Situational Approaches to Leadership After reading these sections, you should be able to:
    • explain Fiedler’s contingency theory.
    • describe how path-goal theory works.
    • discuss Hersey and Blanchard’s Situational Leadership theory.
    • explain the normative decision theory.
  • 12. Putting Leaders in the Right Situation: Fiedler’s Contingency Theory 3 Group Performance = Leadership Style Situational Favorableness
  • 13. Putting Leaders in the Right Situation: Fiedler’s Contingency Theory Least Preferred Coworker Situational Favorableness Matching Leadership Styles to Situations 3
  • 14. Leadership Style: Least Preferred Coworker
    • Leadership style is the way a leader generally behaves toward followers
      • seen as stable and difficult to change
    • Style is measured by the Least Preferred Co-worker scale (LPC)
      • relationship-oriented
      • task-oriented
    3.1
  • 15. Leadership Style: Least Preferred Coworker Scale Adapted From Exhibit 17.6 3.1
  • 16. Situational Favorableness 3.2
    • Situational Favorableness
    • The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members.
    • Three factors:
      • Leader-member relations
      • Task structure
      • Position power
  • 17. Situational Favorableness Adapted from Exhibit 14.7 3.2
  • 18. Matching Leadership Styles to Situations Adapted from Exhibit 14.8 3.3
  • 19. Path-Goal Theory 4 Path-Goal Theory A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.
  • 20. Basic Assumptions of Path-Goal Theory Adapted From Figure 17.9 4 Clarify paths to goals Clear paths to goals by solving problems and removing roadblocks Increase the number and kinds of rewards available for goal attainment Do things that satisfy followers today or will lead to future rewards or satisfaction Offer followers something unique and valuable beyond what they’re experiencing
  • 21. Path-Goal Theory Adapted From Figure 17.10 4
    • Subordinate Contingencies
    • Perceived Ability
    • Locus of Control
    • Experience
    • Environmental Contingencies
    • Task Structure
    • Formal Authority System
    • Primary Work Group
    • Outcomes
    • Subordinate satisfaction
    • Subordinate performance
    • Leadership Styles
    • Directive
    • Supportive
    • Participative
    • Achievement-Oriented
  • 22. Adapting Leader Behavior: Path-Goal Theory 4 Leadership Styles Subordinate and Environmental Contingencies Outcomes
  • 23. Leadership Styles
    • Directive
      • clarifying expectations and guidelines
    • Supportive
      • being friendly and approachable
    • Participative
      • allowing input on decisions
    • Achievement-Oriented
      • setting challenging goals
    4.1
  • 24. Subordinate and Environmental Contingencies
    • Task structure
    • Formal authority system
    • Primary work group
    4.2
    • Perceived ability
    • Locus of control
    • Experience
    Subordinate Environmental
  • 25. Path Goal Theory: When to Use Leadership Styles Adapted from Exhibit 17.11 4.2
  • 26. Adapting Leadership Behavior Worker Readiness Leadership Styles Hersey and Blanchard’s Situational Leadership Theory 5
  • 27. Worker Readiness
    • The ability and willingness to take responsibility for directing one’s behavior at work
    • Components of worker readiness:
      • Job readiness
      • Psychological readiness
    5.1
  • 28. Worker Readiness 5.1 R4 R3 R2 R1 Confident Willing Able Insecure not willing Able Confident Willing Not able Insecure Not able Not willing
  • 29. Leadership Styles 5.2 Telling (R1) Selling (R2) Participating (R3) Delegating (R4) high task behavior low relationship behavior high task behavior high relationship behavior low task behavior high relationship behavior low task behavior low relationship behavior
  • 30. Normative Decision Theory Decision Styles Decision Quality and Acceptance 6
  • 31. Decision Styles Adapted from Exhibit 17.12 6.1 Solve the problem yourself Obtain information. Select a solution yourself. Share problem, get ideas from individuals. Select a solution yourself. AI AII CI Share problem with group, get ideas. Make decision, which may or may not reflect input. Share problem with group. Together tries to reach a solution. Leader acts as facilitator. CII GII Leader solves the problem or makes the decision Leader accepts any decision supported by the entire group
  • 32. Decision Quality and Acceptance
    • Using the right amount of employee participation:
      • improves decision quality
      • improves acceptance
    • Decision tree helps leader identify optimal level of participation
    6.2
  • 33.
    • Quality Rule
      • If the quality of the decision is important, then don't use an autocratic decision style
    • Leader Information Rule
      • If the quality of the decision is important, and if the leader doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style
    • Subordinate Information Rule
      • If the quality of the decision is important, and if the subordinates don't have enough information to make the decision themselves, then don't use a group decision style
    Normative Theory Decision Rules to Increase Decision Quality 6.2
  • 34.
    • Goal Congruence Rule
      • If the quality of the decision is important, and subordinates' goals are different from the organization's goals, then don't use a group decision style
    • Problem Structure Rule
      • If the quality of the decision is important, the leader doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style
    Normative Theory Decision Rules to Increase Decision Quality 6.2
  • 35.
    • Commitment Probability Rule
      • If having subordinates accept and commit to the decision is important, then don't use an autocratic decision style
    • Subordinate Conflict Rule
      • If having subordinates accept the decision is important and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style
    • Commitment Requirement Rule
      • If having subordinates accept the decision is absolutely required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style
    Normative Theory Decision Rules to Increase Decision Acceptance 6.2
  • 36. Strategic Leadership After reading this section, you should be able to:
    • explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership.
  • 37. Visionary Leadership Charismatic Leadership Transformational Leadership 7
  • 38. Charismatic Leadership
    • Creates an exceptionally strong relationship between leader and follower
    • Charismatic leaders:
      • articulate a clear vision, based on values
      • model values consistently with vision
      • communicate high performance expectations
      • display confidence in followers’ abilities
    7.1
  • 39. Kinds of Charismatic Leaders
    • Ethical Charismatics
      • provide developmental opportunities
      • open to positive and negative feedback
      • recognize others’ contributions
      • share information
      • concerned with the interests of the group
    • Unethical Charismatics
      • control and manipulate followers
      • do what is best for themselves
      • only want positive feedback
      • motivated by self-interest
    7.1
  • 40. Ethical and Unethical Charismatic Leaders Adapted from Exhibit 17.15 7.1 Exercising Power Power is used to serve others Creating the vision Followers help develop the vision Communicating with followers Two-way communication Accepting feedback Open to feedback Want followers to think and to questions the status quo Stimulating followers Developing followers Focus on developing followers Living by moral standards Three virtues: courage, sense of fairness, integrity Charismatic Leader Behaviors Ethical Charismatics
  • 41. Ethical and Unethical Charismatic Leaders Adapted from Exhibit 17.15 7.1 Charismatic Leader Behaviors Unethical Charismatics Exercising Power Power is used to dominate others Creating the vision Vision comes solely from the leader Communicating with followers One-way communication, not open to input from others Accepting feedback Prefer yes-men, punish candid feedback Don’t want followers to think, prefer uncritical acceptance of own ideas Stimulating followers Developing followers Insensitive to followers’ needs Living by moral standards Follow standards only if they satisfy immediate self interests
  • 42. Reducing Risks of Unethical Charismatics
    • Have a clearly written code of conduct
    • Recruit, select, and promote managers with high ethical standards
    • Train leaders how to value, seek, and used diverse points of view
    • Celebrate and reward those who exhibit ethical behaviors
    7.1
  • 43. Transformational Leadership
    • Generates awareness and acceptance of group’s purpose and mission
    • Gets followers to accomplish more than they intended or thought possible
    7.2
  • 44. Components of Transformational Leadership
    • Charisma or idealized influence
    • Inspirational motivation
    • Intellectual stimulation
    • Individualized consideration
    7.2