Strategic Management

Chapter 17

Leadership

Who are leaders and what is leadership?

Leaders: people who can influence others and who have managerial authority

Leadership: Process of influencing a group to achieve goals All managers should be leaders

What do early Leadership theories tell us?

Trait Theorieso Tried to identify traits that would differentiate leaders

from non-leaders Impossible to identify one set of traits that would

always differentiate leaders Seven traits associated with leadership Drive Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge Extraversion

Behavioural theorieso Looked for behaviours that differentiated effective

leaders from ineffective leaders University of Iowa Studies identified styles of

leadership Autocratic Democratic Laissez-faire

Ohio State Studies identified structural behaviours Consideration Structure Behaviours Initiation Structure Behaviours

University of Michigan studies identified employee-orientated and production-orientated behaviours

Managerial Grid Identified concern for people and concern

for production behaviours

Emphasised 5 Styles of Leadershipo Impoverishedo Tasko Middle of the Roado Country Clubo Team

Effective leader behaviour for all situations could not be determined

What do contingency theories of leadership say?

Each theory looks at defining leadership style and the situation Each theory also answers ‘If-then contingencies’

o Fiedler’s contingency model Measured leader style using least preferred co-

worker questionnaire Relationship orientated Task oriented Assumed leader’s style was fixed

Measured 3 contingency dimensions Leader-member relations Task structure Position power

Task-oriented leaders performed best in very favourable situations

Relationship-oriented leaders performed best in moderately favourable situations

o Hersey’s Situational Leadership Model Focussed on followers’ readiness

Their ability and willingness to accomplish a specific task

Four specific leadership styles: Telling (high task – low relationship) Selling (high task – high relationship) Participating (low task – high relationship) Delegating (low task – low relationship)

Four stages of readiness Unable and unwilling (telling) Unable but willing (selling) Able but Unwilling (Participating) Able and willing (delegating)

o Leader Participation Model Developed by Vroom and Yetton Related leadership style to decision making

o Path-Goal Theory (developed by Robert House) Four leadership behaviours:

Directive Supportive

Participative Achievement-orientated ***Assumes that leader can and should be

able to use any of these styles**** Two situational contingency variables:

Environmental Follower

Summarised as: leader should provide direction and support as needed

What are the contemporary views on leadership?

Transactional o Leaders exchange rewards for productivity

Transformationalo Leaders stimulate and inspire followers to achieve goals

Charismatic and visionary leaders Team Leadership

What are the main leadership issues today?

Leaders and Powero Legitimateo Coerciveo Rewardo Experto Referent

Developing trust: o Belief in the integrityo Character and ability of leader

Five dimensions of trust Integrity Competence Consistency Loyalty Openness

Providing ethical leadership Empowering Employees Demise of celebrity leaders Sustainability initiatives and ethical transformational leaders

Becoming an effective leader

Leadership training Cross-cultural leadership Gender differences in leadership

Substitutes for leadership