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MGMT5

© 2012 Cengage Learning

Leadership14

© 2012 Cengage Learning

1. explain what leadership is2. describe who leaders are and what effective

leaders do3. explain Fiedler’s contingency theory4. describe how path-goal theory works5. explain the normative decision theory6. explain how visionary leadership (i.e.,

charismatic or transformational leadership) helps leaders achieve strategic leadership

© 2012 Cengage Learning

What is Leadership?

1. explain what leadership is

2. describe who leaders are and what effective leaders do

© 2012 Cengage Learning

Leaders vs. Managers

• Doing the right thing• “What should we be doing?”• Vision, mission, goals,

objectives• Challenge the status quo• Long-term view• Expand people’s options and

choices• Inspire and motivate people

to find their own solutions• Concerned with ends, what

gets done

• Doing things right• “How can we do what we’re

already doing better?” • Productivity and efficiency• Preservers of status quo• Short-term view• Limit others’ choices• Sole problems so that others

can do their work• More concerned with means,

how things get done

© 2012 Cengage Learning

Leadership Traits

• Trait theory– effective leaders possess a similar set of traits or

characteristics

• Leaders are different from followers in:– drive– desire to lead– honest/integrity– self-confidence– emotional stability– cognitive ability– knowledge of the business

© 2012 Cengage Learning

Leadership Behaviors

• Initiating structure

• Consideration

© 2012 Cengage Learning

Blake/Mouton Leadership Grid

© 2012 Cengage Learning

Situational Approaches to Leadership

3. explain Fiedler’s contingency theory

4. describe how path-goal theory works

5. explain the normative decision theory

© 2012 Cengage Learning

Fiedler’s Contingency Theory

In order to maximize work group performance, leaders must be matched to the

right leadership situation.

•Leaders are effective when the work group they lead performs well. •Leaders are generally unable to change their leadership styles, and they will be more effective when their styles are matched to the proper situation. •The favorableness of a situation permits the leader to influence the behavior of group members.

© 2012 Cengage Learning

Least Preferred Coworker

• Leadership style = the way that leaders generally behave toward their followers.

• Leadership styles are tied to leaders’ underlying needs and personalities.

• Relationship-oriented

• Task-oriented

© 2012 Cengage Learning

Situational Favorableness

The degree to which a particular situation either permits or denies a leader the chance to influence the

behavior of group members.

•Leader-member relations

•Task structure

•Position power

© 2012 Cengage Learning

Situational Favorableness

© 2012 Cengage Learning

Matching Leadership Styles to Situations

© 2012 Cengage Learning

Leaders and Situations

• Fiedler assumes leaders to be incapable of changing their leadership styles.

• The key − matching leaders to situations…

• …or teaching leaders how to change situational favorableness

© 2012 Cengage Learning

Path-Goal Theory

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.

•Leader behavior must be a source of immediate or future satisfaction for followers.

•Leaders must complement, not duplicate the characteristics of followers’ work environments.

© 2012 Cengage Learning

Path-Goal Theory

© 2012 Cengage Learning

Leadership Styles

• Directive

• Supportive

• Participative

• Achievement-oriented

© 2012 Cengage Learning

Subordinate Contingencies

• Perceived ability

• Experience

• Locus of control– internals vs. externals

© 2012 Cengage Learning

Environmental Contingencies

• Task structure

• Formal authority system

• Primary work group

© 2012 Cengage Learning

Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership

© 2012 Cengage Learning

Normative Decision Theory

Helps leaders decide how much employee participation (from none to letting

employees make the entire decision) should be used when making decisions.

© 2012 Cengage Learning

Normative Theory, Decision Styles, and Levels of Employee Participation

© 2012 Cengage Learning

Normative Theory Decision Rules

© 2012 Cengage Learning

Normative Decision Theory Tree for Determining Level of Participation in Decision Making

© 2012 Cengage Learning

Strategic Leadership

6. explain how visionary leadership (i.e., charismatic and transformational leadership) helps achieve strategic leadership

© 2012 Cengage Learning

Visionary Leadership

Creates a positive image of the future that motivates organizational members and

provides direction for future planning and goal setting.

© 2012 Cengage Learning

Charismatic Leadership

The behavioral tendencies and personal characteristics of leaders that create an

exceptionally strong relationship with followers.

•Articulate a clear vision for the future that is based on strongly held values or morals•Model those values by acting in a way consistent with the vision•Communicate high performance expectations to followers•Display confidence in followers’ abilities to achieve the vision

© 2012 Cengage Learning

Ethical and Unethical Charismatics

© 2012 Cengage Learning

Transformational Leadership

Generates awareness and acceptance of a group’s purpose and mission and gets

employees to see beyond their own needs and self interests for the good of the group.

© 2012 Cengage Learning

Components of Transformational Leadership

• Charismatic leadership or idealized influence

• Inspirational motivation

• Intellectual stimulation

• Individualized consideration

© 2012 Cengage Learning

Transactional Leadership

Based on an exchange process in which followers are rewarded for good

performance and punished for poor performance.

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REELTOREAL

© 2012 Cengage Learning

Doomsday

1. Assess the behavior of both Major Sinclair and Michael Canaris. Which leadership traits does their behavior show?

2. Does this film sequence show any aspects of charismatic and transformational leadership? Draw some examples from the sequence.

<click screenshot for video>

REELTOREAL

© 2012 Cengage Learning

Camp Bow Wow

1. Does Camp Bow Wow CEO Heidi Ganahl possess qualities associated with contemporary leadership?

2. In what way is Heidi Ganahl’s leadership charismatic and visionary? Give examples.

3. Where does Heidi Ganahl’s leadership fall on the Leader-ship Grid discussed in the chapter? Explain.

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