The new CEO of Tyco is faced with $28 billion in debt, and the possibilities of bankruptcy
Dennis Kozlowski’s reign as CEO is still embarrassing, when he used funds as his personal piggy bank
43 rd Floor, Tyco Headquarters, New York City. How can you get people to see that with sound management, Tyco can be an exceptional company?
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.
Leadership Differences Between Leaders and Managers Substitutes for Leadership 1
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 14.1 1.1
Leaders versus Managers 1.1 American organizations (and probably those in much of the rest of the industrialized world) are under led and over managed. They do not pay enough attention to doing the right thing, while they pay too much attention to doing things right. --Warren Bennis
subordinate, task, or organizational characteristics that make leaders redundant or unnecessary
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
Leadership Substitutes and Neutralizers Adapted from Exhibit 14.2 1.2
Who Leaders Are and What Leaders Do Leadership Traits Leadership Behavior 2
Leadership Traits 2.1 Adapted from Exhibit 14.3 Leadership Traits Desire to Lead Honesty and Integrity Drive Self- Confidence Emotional Stability Cognitive Ability Knowledge of the Business
What Really Works: Leadership Traits 2.1 Intelligence 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 75% Dominance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 57% Extroversion 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 63% Traits and Perceptions of Leadership Effectiveness
What Really Works: Leadership Traits 2.1 Charisma and Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 72% Charisma and Perceived Leadership Effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 89% Charisma and Leader Satisfaction 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 90% Charisma and Leadership Effectiveness
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.
Blake/Moulton Leadership Grid 5,5 Middle of the Road 5,5 Adapted from Exhibit 14.4 2.2 Concern for People Concern for Production High Low Low High 1,9 Country Club Management 9,9 Team Management 1,1 Impoverished Management 9,1 Authority-Compliance 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
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.
Putting Leaders in the Right Situation: Fiedler’s Contingency Theory 3 Group Performance = Leadership Style Situational Favorableness
Putting Leaders in the Right Situation: Fiedler’s Contingency Theory Least Preferred Coworker Situational Favorableness Matching Leadership Styles to Situations 3
Matching Leadership Styles to Situations Exhibit 14.8 3.3
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.
Basic Assumptions of Path-Goal Theory Adapted From Figure 14.9 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
The ability and willingness to take responsibility for directing one’s behavior at work
Components of worker readiness:
Worker Readiness 5.1 R4 R3 R2 R1 confident willing able insecure not willing able confident willing not able insecure not able not willing
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
Normative Decision Theory Decision Styles Decision Quality and Acceptance 6
Decision Styles Adapted from Exhibit 14.12 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
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
Normative Theory Decision Rules to Increase Decision Quality
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 Acceptance
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
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.
Ethical and Unethical Charismatic Leaders 7.1 Adapted from Exhibit 14.15 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
Ethical and Unethical Charismatic Leaders 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 7.1 Adapted from Exhibit 14.15 Charismatic Leader Behaviors Unethical Charismatics