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PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama Leading in a Leading in a Dynamic Dynamic Environment Environment Chapter Chapter 12 12 Part 4 Leadership Challenges in the 21st Part 4 Leadership Challenges in the 21st Century Century

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PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Leading in a Leading in a Dynamic Dynamic EnvironmentEnvironment

ChapterChapter

1212

Part 4 Leadership Challenges in the 21st CenturyPart 4 Leadership Challenges in the 21st Century

Leadership DefinedLeadership Defined

A responsibility and a process that is an A responsibility and a process that is an observable, understandable, learnable set of observable, understandable, learnable set of skills and practices available to everyone, skills and practices available to everyone, anywhere in the organization.anywhere in the organization.

What is leadership

The process of directing and influencing the The process of directing and influencing the task-related activities of group memberstask-related activities of group members

12–2

Implications of leadershipImplications of leadership

1.1. Leadership involve other peopleLeadership involve other people2.2. Leadership involve an unequal distribution Leadership involve an unequal distribution

of powerof power3.3. Leaders can influence subordinates in a Leaders can influence subordinates in a

variety of waysvariety of ways

12–3

12–4

Leadership SignificanceLeadership Significance

• Leadership is:Leadership is:

A social influence process.A social influence process.

A A responsibility responsibility and a and a processprocess; it’s not a position, title, ; it’s not a position, title, or privilege.or privilege.

An observable, understandable, learnable set of skills An observable, understandable, learnable set of skills and practices available to everyone, anywhere in the and practices available to everyone, anywhere in the organization.organization.

The indirect ability to influence people by inspiring The indirect ability to influence people by inspiring them to pursue goals for the benefit of the them to pursue goals for the benefit of the organization.organization.

12–5

Leadership and VisionLeadership and Vision

• Leadership involves:Leadership involves:

Creating a vision of the future.Creating a vision of the future.

Devising strategy for achieve that vision.Devising strategy for achieve that vision.

Communicating the vision so that everyone Communicating the vision so that everyone understands and believes in it.understands and believes in it.

There are four important points of There are four important points of leadership:-leadership:-1.1. Leadership involves other peopleLeadership involves other people

2.2. Leadership involves unequal distribution of Leadership involves unequal distribution of powerpower

3.3. Leadership is the ability to use the different Leadership is the ability to use the different forms of power forms of power

4.4. Leadership is about valuesLeadership is about values

12–6

The importance leadershipThe importance leadership

1.1. To direct and supervise To direct and supervise subordinatessubordinates

2.2. To influence and motivates To influence and motivates subordinatessubordinates

3.3. To encourage teamworkTo encourage teamwork4.4. To enhance cooperationTo enhance cooperation5.5. To accomplish org objectivesTo accomplish org objectives

12–7

Approaches to the study on leadershipApproaches to the study on leadership

1. Leader centered approach

2. Follower centered approach

3. Interactive approach

12–8

12–9

Leader-Centered ApproachesLeader-Centered Approaches

• Leadership Traits and Skills FocusLeadership Traits and Skills Focus The assumption that some people are born with The assumption that some people are born with

certain physical characteristics, aspects of certain physical characteristics, aspects of personality, and aptitudes that make them successful personality, and aptitudes that make them successful leaders.leaders.Physical characteristics:Physical characteristics: height and appearance height and appearancePersonality:Personality: self-esteem, dominance and emotional self-esteem, dominance and emotional

stabilitystabilityAptitudes:Aptitudes: general intelligence, verbal fluency and general intelligence, verbal fluency and

creativitycreativity

The Trait Approach To LeadershipThe Trait Approach To Leadership

1.1. Assumed that leaders were born and not Assumed that leaders were born and not made.made.

2.2. Researchers took two approaches :Researchers took two approaches :I.I. Compare the traits of leaders and non leadersCompare the traits of leaders and non leaders

II.II. Compare the traits of effective leaders and Compare the traits of effective leaders and ineffective leadersineffective leaders

3.3. Examples of desirable traits include wisdom, Examples of desirable traits include wisdom, courage, honesty and sincerity.courage, honesty and sincerity.

4.4. Examples of traits compared include physical Examples of traits compared include physical characteristics, mental ability, charisma, characteristics, mental ability, charisma, attitudeattitude

5.5. However the trait theory is inconclusive However the trait theory is inconclusive because of many conflicting evidence. because of many conflicting evidence. 12–10

12–11

Traits of Successful LeadersTraits of Successful Leaders

• DriveDrive Achievement, sense of responsibility, ambition, Achievement, sense of responsibility, ambition,

energy, tenacity and initiative.energy, tenacity and initiative.

• MotivationMotivation Especially power.Especially power.

• Honesty and integrityHonesty and integrity• Self confidenceSelf confidence

Persuasive, diplomatic and socially skilled.Persuasive, diplomatic and socially skilled.

• Conceptual abilityConceptual ability• Business knowledgeBusiness knowledge

12–12

Table 12.Table 12.1 1 The 25 Most Influential Leaders of Our TimesThe 25 Most Influential Leaders of Our Times

1. Mary Kay Ash, founder of Mary Kay Cosmetics

2. Jeff Bezos, CEO of Amazon.com

3. John Bogle, founder of The Vanguard Group

4. Richard Branson, CEO of Virgin Group

5. Warren Buffett, CEO of Berkshire Hathaway

6. James Burke, former CEO of Johnson & Johnson

7. Michael Dell, CEO of Dell Computers

8. Peter Drucker, educator and author

9. Bill Gates, chair of Microsoft

10.William George, former CEO of Medtronics

11.Louis Gerstner, former CEO of IBM

12.Alan Greenspan, chair, U.S. Federal Reserve

13.Andy Grove, former chair of Intel

14. Lee Iacocca, former CEO of Chrysler

15. Steven Jobs, CEO of Apple Computers

16. Herb Kelleher, CEO of Southwest Airlines

17. Peter Lynch, former manager of Fidelity’s Magellan Fund

18. Charles Schwab, founder of Charles Schwab Inc.

19. Frederick Smith, CEO of Federal Express

20. George Soros, founder and chair of Open Society Institute

21. Ted Turner, founder of CNN

22. Sam Walton, founder of Wal-Mart

23. Jack Welch, former CEO of General Electric

24. Oprah Winfrey, chair of the Harpo group of companies

25. Mohammed Yunus, founder of Grameen Bank.

To celebrate the 25th anniversary of the Nightly Business Report (NBR), Wharton and NBR worked to identify the 25 most influential business leaders of the past 25 years. Their goal was to find business leaders who created new and profitable ideas; affected political, civic or social change through achievement in the business/economic world; created new business opportunities or more fully exploited existing ones; caused or influenced dramatic change in a company or industry; and/or inspired and transformed others.

12–13

Leader-Centered Approaches (cont’d)Leader-Centered Approaches (cont’d)

• Leadership Behavior FocusLeadership Behavior Focus Examines what effective leaders do rather than what Examines what effective leaders do rather than what

effective leaders are.effective leaders are. Defines a leader’s effectiveness based on two Defines a leader’s effectiveness based on two

orientations:orientations:Task orientationTask orientation

– Setting performance goals, planning and scheduling work, Setting performance goals, planning and scheduling work, coordinating activities, giving directions, setting standards, coordinating activities, giving directions, setting standards, providing resources, and supervising performance.providing resources, and supervising performance.

Relations orientationRelations orientation– Behavior that shows empathy for concerns and feelings, Behavior that shows empathy for concerns and feelings,

supportive of needs, showing trust, and similar attributes.supportive of needs, showing trust, and similar attributes.

The Behavioral Approach The Behavioral Approach To LeadershipTo Leadership

• Assumes that leadership can Assumes that leadership can be learnedbe learned

• Focused on two aspect of Focused on two aspect of leadership behavior :leadership behavior :

1.1. Leadership functionLeadership function

2.2. Leadership style Leadership style

12–14

Behavioral ApproachBehavioral ApproachLeadership FunctionLeadership FunctionA leader performs two major functions:A leader performs two major functions:

1.1. Task related or problem solving functionsTask related or problem solving functions

2.2. Group maintenance or social functions.Group maintenance or social functions.

Examines what effective leaders do rather than Examines what effective leaders do rather than what effective leaders are.what effective leaders are.

Defines a leader’s effectiveness based on two Defines a leader’s effectiveness based on two orientations:orientations:

12–15

12–16

II.II. Behavioral ApproachBehavioral ApproachTask orientation or job centered styleTask orientation or job centered style

– focus on closely supervise subordinatesfocus on closely supervise subordinates– Setting performance goals, giving directions, and Setting performance goals, giving directions, and

supervising performance.supervising performance.– More concerned with getting the job done to his More concerned with getting the job done to his

satisfactionsatisfaction

Employee orientation or people centered styleEmployee orientation or people centered style– Focus on motivating rather than controlling subordinatesFocus on motivating rather than controlling subordinates– Behavior that shows empathy for concerns and feelings, Behavior that shows empathy for concerns and feelings,

supportive of needs, and showing trust.supportive of needs, and showing trust.– Friendly and respectful relationship with employees, would Friendly and respectful relationship with employees, would

try to motivate subordinates rather than to control them.try to motivate subordinates rather than to control them.

12–17

The behavioral approach is supported by below The behavioral approach is supported by below studies:studies:

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

The Managerial Grid (by The Managerial Grid (by Robert Blake and Jane Robert Blake and Jane

Mouton)Mouton)

The Managerial Grid (by The Managerial Grid (by Robert Blake and Jane Robert Blake and Jane

Mouton)Mouton)

The Ohio State The Ohio State University (OSU studies)University (OSU studies)

The Ohio State The Ohio State University (OSU studies)University (OSU studies)

Behavioral Behavioral ApproachApproach

Behavioral Behavioral ApproachApproach

The University of Michigan The University of Michigan (Michigan studies)(Michigan studies)

The University of Michigan The University of Michigan (Michigan studies)(Michigan studies)

12–18

OSU studies concluded that leaders exhibit two main OSU studies concluded that leaders exhibit two main types of behavior:types of behavior:

I.I. Structure Behavior (task-oriented)Structure Behavior (task-oriented) The leadership activity that establishes The leadership activity that establishes

procedures that employees should follow in procedures that employees should follow in performing their tasks or jobs.performing their tasks or jobs.

II.II. Consideration Behavior (employee-oriented)Consideration Behavior (employee-oriented) The leadership behavior that shows friendship, The leadership behavior that shows friendship,

trust, respect and warmth in the relationship trust, respect and warmth in the relationship between leaders and employees.between leaders and employees.

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

The Ohio State University (OSU studies)The Ohio State University (OSU studies)The Ohio State University (OSU studies)The Ohio State University (OSU studies)

II. II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

They found that the most effective leadership They found that the most effective leadership styles is High considerationstyles is High consideration..

However the researchers also found that However the researchers also found that effective leadership style also depend on effective leadership style also depend on situational factors. For example Air force situational factors. For example Air force commanders who were rated high on commanders who were rated high on consideration were less effectiveconsideration were less effective

12–19

The Ohio State University (OSU studies)The Ohio State University (OSU studies)The Ohio State University (OSU studies)The Ohio State University (OSU studies)

12–20

OSU studies resulted in a model OSU studies resulted in a model that shows four leadership styles.that shows four leadership styles.

i.e. A high structure/low consideration leadership style emphasizes on structure behavior and place less attention to consideration behavior.

Low structure/high consideration Low structure/high consideration – highest employee satisfaction, – highest employee satisfaction, lowest turnover rateslowest turnover rates

High structure/low consideration High structure/low consideration – had high grievance, high – had high grievance, high turnover ratesturnover rates

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

•Distinguished between Production Distinguished between Production centered (Job Centered) and centered (Job Centered) and Employee centered managersEmployee centered managers

12–21

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

The University of Michigan (Michigan studies)The University of Michigan (Michigan studies)The University of Michigan (Michigan studies)The University of Michigan (Michigan studies)

12–22

Michigan studies concluded two types of leader behavior:Michigan studies concluded two types of leader behavior:

I.I. Job-centered Behavior Job-centered Behavior Interested in the job that subordinate is doing and how Interested in the job that subordinate is doing and how

well the subordinate performs the job.well the subordinate performs the job. Leaders set rigid work standards, prescribe work methods Leaders set rigid work standards, prescribe work methods

to be followed, and closely supervise subordinate work.to be followed, and closely supervise subordinate work.

II.II. Employee-centered BehaviorEmployee-centered Behavior Interested to the personal needs of subordinates and build Interested to the personal needs of subordinates and build

cooperative work teams that are satisfying to cooperative work teams that are satisfying to subordinates.subordinates.

Leaders encourage subordinates participation and inspire Leaders encourage subordinates participation and inspire trust and respect among subordinates. trust and respect among subordinates.

The most productive work groups have leaders who were The most productive work groups have leaders who were employee-centered rather than job-centered.employee-centered rather than job-centered.

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

The University of Michigan (Michigan studies)The University of Michigan (Michigan studies)The University of Michigan (Michigan studies)The University of Michigan (Michigan studies)

12–23

Managerial Grid identifies five leadership behaviors Managerial Grid identifies five leadership behaviors based on task-oriented and employee-oriented styles. based on task-oriented and employee-oriented styles.

The grid identifies a range of management behaviors The grid identifies a range of management behaviors based on the various ways that task-oriented and based on the various ways that task-oriented and employee-oriented styles can interact with one another employee-oriented styles can interact with one another (each expressed on a scale of 1 to 9).(each expressed on a scale of 1 to 9).

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

The Managerial Grid (Robert Blake & Jane Mouton)The Managerial Grid (Robert Blake & Jane Mouton)The Managerial Grid (Robert Blake & Jane Mouton)The Managerial Grid (Robert Blake & Jane Mouton)

• Developed by Robert Blake and Jane MoutonDeveloped by Robert Blake and Jane Mouton

• Identifies five types of leadership styles :Identifies five types of leadership styles :Style 1,1-Style 1,1- Impoverished mgt. Low concern for both people Impoverished mgt. Low concern for both people

and production. Also known as Laissez-faire management.and production. Also known as Laissez-faire management.Style 1,9Style 1,9 - Country club mgt. High concern employees but - Country club mgt. High concern employees but

low concern for productionlow concern for productionStyle 5,5Style 5,5 - Middle of the road mgt - Middle of the road mgt Intermediate concern for both production and employeesIntermediate concern for both production and employees..Style 9,1Style 9,1 - Autocratic mgt. High concern for production but - Autocratic mgt. High concern for production but

low concern for people.low concern for people.Style 9,9Style 9,9 -Team or democratic mgt. High concern for both -Team or democratic mgt. High concern for both

production and employees. This is the most effective style.production and employees. This is the most effective style.

12–24

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * *

12–25

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * * The five leadership styles practiced by managers.The five leadership styles practiced by managers.

Point 1,1 – Impoverished ManagementPoint 1,1 – Impoverished Management↓ ↓ concern for people, ↓ concern for concern for people, ↓ concern for tasks, leader does not play his tasks, leader does not play his leadership role, makes minimum effort leadership role, makes minimum effort to get work done, also known as to get work done, also known as laissez-faire management laissez-faire management

Point 1,9 – Country Club ManagementPoint 1,9 – Country Club Management↑ ↑ concern for people, ↓ concern for concern for people, ↓ concern for tasks, this leadership style believes tasks, this leadership style believes that giving attention to people’s needs that giving attention to people’s needs will lead to a comfortable and friendly will lead to a comfortable and friendly organizational atmosphereorganizational atmosphere

12–26

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * * The five leadership styles practiced by managers.The five leadership styles practiced by managers.

Point 5,5 – Point 5,5 – Middle-of-the-Road/Organization Man Middle-of-the-Road/Organization Man ManagementManagementconcern for people = concern for tasks, concern for people = concern for tasks, adequate organization performance is adequate organization performance is possible through balancing work and possible through balancing work and maintaining morale of employees at a maintaining morale of employees at a satisfying levelsatisfying level

Point 9,1 – Task/Authoritarian/Autocratic Point 9,1 – Task/Authoritarian/Autocratic Management Management ↓ ↓ concern for people, ↑ concern for concern for people, ↑ concern for tasks, manager stresses on operating tasks, manager stresses on operating efficiently through controls, wants work efficiently through controls, wants work schedule to be followed, least concern schedule to be followed, least concern about employees welfareabout employees welfare

12–27

II.II. Behavioral Approach (cont’d)Behavioral Approach (cont’d) * * The five leadership styles practiced by managers.The five leadership styles practiced by managers.

Point 9,9 – Team / Democratic / Point 9,9 – Team / Democratic / Participative/ Supportive ManagementParticipative/ Supportive Management↑ ↑ concern for people, ↑ concern for concern for people, ↑ concern for tasks, work accomplishment is from tasks, work accomplishment is from committed people, interdependence committed people, interdependence through common interests as well as through common interests as well as relationship of trust and respectrelationship of trust and respect

Style 9,9 is the most effective Style 9,9 is the most effective management style - improved management style - improved performance, low absenteeism and performance, low absenteeism and turnover, and high employee turnover, and high employee satisfaction.satisfaction.

12–28

III.III. Contingency ApproachContingency Approach * *

Formulated by Martin G. Evans and Robert J. House.Formulated by Martin G. Evans and Robert J. House. Based on expectancy model, which states employee’s Based on expectancy model, which states employee’s

motivation depends on his expectation of reward or motivation depends on his expectation of reward or the attractiveness of the reward.the attractiveness of the reward.

Managers determine the availability of “goals” Managers determine the availability of “goals” (rewards) and the “paths” that will earn those rewards.(rewards) and the “paths” that will earn those rewards.

Leader can increase employee effort and productivity Leader can increase employee effort and productivity by clarifying performance goals and the path to be by clarifying performance goals and the path to be taken to achieve those goals.taken to achieve those goals.

1.1. Path-Goal ApproachPath-Goal Approach1.1. Path-Goal ApproachPath-Goal Approach

12–29

III.III. Contingency Approach (cont’d)Contingency Approach (cont’d) * *

According to Path-Goal theory of leadership, leaders According to Path-Goal theory of leadership, leaders show four primary types of behavior:show four primary types of behavior:

I.I. Directive behaviorDirective behavior Telling followers what to do and how to do it, Telling followers what to do and how to do it,

leader indicates what performance goals exist leader indicates what performance goals exist and what must be done to achieve it.and what must be done to achieve it.

II.II. Supportive behaviorSupportive behavior Being friendly with followers and showing interest Being friendly with followers and showing interest

in them as human beings. Leader shows in them as human beings. Leader shows sensitivity to the personal needs of followers.sensitivity to the personal needs of followers.

12–30

III.III. Contingency Approach (cont’d)Contingency Approach (cont’d) * *

III.III. Participative behaviorParticipative behavior Seeking suggestions from followers regarding Seeking suggestions from followers regarding

business operations, followers involve in decision business operations, followers involve in decision making, help to determine rewards available and making, help to determine rewards available and what they must do to earn those rewards.what they must do to earn those rewards.

IV.IV. Achievement behaviorAchievement behavior Aimed at setting challenging goals for followers to Aimed at setting challenging goals for followers to

reach and expressing confidence that they will face reach and expressing confidence that they will face up to the challenge. Leader focuses on making up to the challenge. Leader focuses on making challenging goals for employees to achieve.challenging goals for employees to achieve.

Path-goal theory explains why a particular leadership Path-goal theory explains why a particular leadership style is more effective in one situation than in another style is more effective in one situation than in another and it recommends flexibility in dealing with different and it recommends flexibility in dealing with different employee problems and situations.employee problems and situations.

12–31

III.III. Contingency Approach (cont’d)Contingency Approach (cont’d) * *

2.2. Life Cycle or Situational ApproachLife Cycle or Situational Approach2.2. Life Cycle or Situational ApproachLife Cycle or Situational Approach

Developed by Hersey and Blanchard.Developed by Hersey and Blanchard.

Leadership styles should reflect primarily on the Leadership styles should reflect primarily on the maturity level of the followers.maturity level of the followers.

Maturity Maturity is the ability of followers to perform their job is the ability of followers to perform their job independently, the education/experience and skills a follower independently, the education/experience and skills a follower has relevant to particular tasks, to assume additional has relevant to particular tasks, to assume additional responsibility and to desire to achieve success.responsibility and to desire to achieve success.

Describes how leaders should adjust leadership style Describes how leaders should adjust leadership style in response to their subordinates’ desire for in response to their subordinates’ desire for achievement, experience, ability and willingness to achievement, experience, ability and willingness to accept responsibility.accept responsibility.

12–32

III.III. Contingency Approach (cont’d)Contingency Approach (cont’d) * *

Phases in Life-Cycle ApproachPhases in Life-Cycle Approach

Phase 1 (HT/LR)Phase 1 (HT/LR)Telling style:Telling style: the leader the leader provides specific instructions provides specific instructions and closely supervises and closely supervises performance.performance.

Phase 2 (HT/HR)Phase 2 (HT/HR)Selling style:Selling style: the leader the leader explains decisions and explains decisions and provides opportunities for provides opportunities for clarification.clarification.

PHASE 1

PHASE 2PHASE 3

PHASE 4

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III.III. Contingency Approach (cont’d)Contingency Approach (cont’d) * *

Phases in Life-Cycle ApproachPhases in Life-Cycle Approach

Phase 3 (LT/HR)Phase 3 (LT/HR)Participating style:Participating style: the leader the leader shares ideas and maintains shares ideas and maintains two-way communication to two-way communication to encourage and support the encourage and support the skills subordinates have skills subordinates have developed.developed.

Phase 4 (LT/LR)Phase 4 (LT/LR)Delegating style:Delegating style: the leader the leader provides subordinates with provides subordinates with few task or relations few task or relations behaviors.behaviors.

PHASE 1

PHASE 2PHASE 3

PHASE 4

Likert System Four Likert System Four ManagementManagementDeveloped by Rensis LikertDeveloped by Rensis Likert

1.1. Proposed that there are four types of Proposed that there are four types of management stylemanagement style1. 1. Autocratic authoritative - - Mgt make all decisions. Subordinates do not have Mgt make all decisions. Subordinates do not have any rights to contribute ideas.any rights to contribute ideas.

2.2. 2.Benevolent Authoritative2.Benevolent Authoritative - Subordinates are - Subordinates are given some latitude to contribute ideas but mgt given some latitude to contribute ideas but mgt still makes the final decisions.still makes the final decisions.

3.3. 3.Consultative3.Consultative- Subordinates contributions are - Subordinates contributions are encourage.encourage.

4.4. 4.Participative -4.Participative - Team or democratic styles Team or democratic styles

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12–35

Leader-Centered Approaches (cont’d)Leader-Centered Approaches (cont’d)

• Leadership Power FocusLeadership Power Focus Power:Power: the ability to use human, informational, or the ability to use human, informational, or

material resources to get something donematerial resources to get something done——to get to get results.results.

Authority:Authority: the officially (organizationally) sanctioned the officially (organizationally) sanctioned right to get something done.right to get something done.

12–36

PowerPower

• Categories of PowerCategories of Power Position powerPosition power

Power derived from the Power derived from the opportunities inherent in a opportunities inherent in a person’s position in an person’s position in an organization.organization.

Personal powerPersonal powerPower derived from the Power derived from the

interpersonal relationships interpersonal relationships between leaders and followers.between leaders and followers.

12–37

Types of Position PowerTypes of Position Power• Legitimate powerLegitimate power

Stems from formal authority.Stems from formal authority. Some people accept this power, as long as it is not Some people accept this power, as long as it is not

abused, because they attribute legitimacy to the abused, because they attribute legitimacy to the formal position and to the person who holds that formal position and to the person who holds that position.position.

• Coercive powerCoercive power The power to discipline, punish and withhold rewards.The power to discipline, punish and withhold rewards. Coercive power is important largely as a potential, Coercive power is important largely as a potential,

rather than an actual, influence.rather than an actual, influence. For example, the threat of being disciplined for not For example, the threat of being disciplined for not

getting to work on time may be effective in changing getting to work on time may be effective in changing an employee’s behavior.an employee’s behavior.

Types of Position PowerTypes of Position Power

• Reward powerReward power Control over tangible benefits, such as a promotion, a Control over tangible benefits, such as a promotion, a

better job, a better work schedule, or some form of better job, a better work schedule, or some form of recognition.recognition.

For reward power to be influential, the employee must For reward power to be influential, the employee must value the rewards.value the rewards.

• Information powerInformation power Control over information Control over information that involves the leader’s that involves the leader’s

power to access and distribute information that is power to access and distribute information that is either desired or vital to others.either desired or vital to others.

12–38

12–39

Types of Personal PowerTypes of Personal Power

• Expert powerExpert power The power influence another person because of expert knowledge The power influence another person because of expert knowledge

and competence.and competence. Computer specialists often have substantial expert power in Computer specialists often have substantial expert power in

organizations because they have technical knowledge that others organizations because they have technical knowledge that others need.need.

• Referent powerReferent power The ability to influence others based The ability to influence others based

on personal liking, charisma and on personal liking, charisma and reputation.reputation.

Much of the power wielded by Much of the power wielded by strong political leaders, professional strong political leaders, professional athletics, musicians, and artists is athletics, musicians, and artists is referent power.referent power.

12–40

Power OrientationPower Orientation

• Personalized Power OrientationPersonalized Power Orientation Associated with a strong need for esteem and status; Associated with a strong need for esteem and status;

power is often used impulsively.power is often used impulsively.

• Socialized Power OrientationSocialized Power Orientation The use of power for the benefit of others to make The use of power for the benefit of others to make

subordinates feel strong and responsible.subordinates feel strong and responsible.

12–41

Follower-Centered ApproachesFollower-Centered Approaches

• Self-leadership (Followership) FocusSelf-leadership (Followership) Focus A paradigm founded on creating an organization of A paradigm founded on creating an organization of

leaders who are ready to lead themselves.leaders who are ready to lead themselves. Requires each employee to be accountable for his or Requires each employee to be accountable for his or

her own behavior.her own behavior. Views individual, task and organizational Views individual, task and organizational

characteristics as possible leadership substitutes.characteristics as possible leadership substitutes.

12–42

Characteristics of Self-LeadersCharacteristics of Self-Leaders

• The capacity to motivate themselves and stay focused The capacity to motivate themselves and stay focused on tasks.on tasks.

• Integrity that demands both loyalty to the organization Integrity that demands both loyalty to the organization and the willingness to act according to beliefs.and the willingness to act according to beliefs.

• Understanding of the organization and their contributions Understanding of the organization and their contributions to it.to it.

• Willingness to take the initiative to deal with problems.Willingness to take the initiative to deal with problems.

• Versatility, skillfulness and flexibility to adapt to a Versatility, skillfulness and flexibility to adapt to a changing environment.changing environment.

• Responsibility for their careers, actions and Responsibility for their careers, actions and development.development.

Leadership substitutesLeadership substitutes

• Variables that tend to outweigh or prevent the Variables that tend to outweigh or prevent the leader from having an effect on a follower leader from having an effect on a follower performance.performance.

• Also known as Neutralizer. Also known as Neutralizer.

12–43

12–44

Figure 12.Figure 12.3 3 Leadership SubstitutesLeadership Substitutes

12–45

Interactive ApproachesInteractive Approaches

• Another method of examining leadership Another method of examining leadership effectiveness is to look at how leaders interact effectiveness is to look at how leaders interact with their followers.with their followers.

• Interactive Approaches:Interactive Approaches:

Situational leadership modelSituational leadership model

EmpowermentEmpowerment

Transformational leadershipTransformational leadership

12–46

Interactive Approaches (cont’d)Interactive Approaches (cont’d)

• Situational Leadership ModelSituational Leadership Model

Examines the interaction between leadership Examines the interaction between leadership behavior, the situation, and the follower’s readiness.behavior, the situation, and the follower’s readiness.

Readiness:Readiness: the extent to which a subordinate the extent to which a subordinate possesses the ability and willingness to complete a possesses the ability and willingness to complete a specific task.specific task.

Task behavior:Task behavior: the extent to which a leader the extent to which a leader organizes and defines the role of followers by organizes and defines the role of followers by explaining what each person must do and when, explaining what each person must do and when, where, and how tasks are to be accomplished.where, and how tasks are to be accomplished.

12–47

Interactive Approaches (cont’d)Interactive Approaches (cont’d)

• 4 Styles of Situational Leadership Behavior4 Styles of Situational Leadership Behavior

Telling style:Telling style: the leader provides specific instructions the leader provides specific instructions and closely supervises performance.and closely supervises performance.

Selling style:Selling style: the leader explains decisions and the leader explains decisions and provides opportunities for clarification.provides opportunities for clarification.

Participating style:Participating style: the leader shares ideas and the leader shares ideas and maintains two-way communication to encourage and maintains two-way communication to encourage and support the skills subordinates have developed.support the skills subordinates have developed.

Delegating style:Delegating style: the leader provides subordinates the leader provides subordinates with few task or relations behaviors.with few task or relations behaviors.

Hersey and Blanchard’s Situational Hersey and Blanchard’s Situational leadership theory(life-cycle theory)leadership theory(life-cycle theory)

Formulated by Paul Hersey and Kenneth Formulated by Paul Hersey and Kenneth BlanchardBlanchard

1.1.Hold that the most effective leadership style Hold that the most effective leadership style varies with the “maturity” of subordinates.varies with the “maturity” of subordinates.

2.2.Maturity is not define in terms of age or Maturity is not define in terms of age or emotional stability but a desire for achievement, emotional stability but a desire for achievement, etc.etc.

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Stage 1 - Telling StageStage 1 - Telling Stage• High TaskHigh Task – A directive leadership is needed. – A directive leadership is needed.

A non directive leader will create anxiety and A non directive leader will create anxiety and confusions among new workersconfusions among new workers

• Low relationshipLow relationship – Managers and – Managers and subordinates are in the process of knowing subordinates are in the process of knowing each other. each other.

Stage 2 - Selling StageStage 2 - Selling Stage• High TaskHigh Task – Detail instructions is still essential – Detail instructions is still essential

because subordinates are not yet able to because subordinates are not yet able to function without the structurefunction without the structure

• High RelationshipHigh Relationship – Subordinate need the – Subordinate need the support and encouragement from the leader support and encouragement from the leader

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Stage 3 - Participating StageStage 3 - Participating Stage

• Low TaskLow Task - Subordinates have more - Subordinates have more ability.Therefore the leader will no longer need ability.Therefore the leader will no longer need to be as directive.to be as directive.

• High RelationshipHigh Relationship – The leader will still have to – The leader will still have to be supportivebe supportive..

Stage 4 - Delegating Stage 4 - Delegating StageStage

• Low Task, Low RelationshipLow Task, Low Relationship• Subordinates become more confident, self Subordinates become more confident, self

directing and experienced.directing and experienced.• Followers no longer need direction.They are Followers no longer need direction.They are

on their own.on their own.12–50

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Interactive Approaches (cont’d)Interactive Approaches (cont’d)

• EmpowermentEmpowerment

The interaction of the leader giving away or sharing The interaction of the leader giving away or sharing power with those who use it to become involved and power with those who use it to become involved and committed to independent, high-quality performance.committed to independent, high-quality performance.

Successful empowerment means that everyone has Successful empowerment means that everyone has been convinced that he or she makes a difference to been convinced that he or she makes a difference to the success of the organization. the success of the organization.

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Interactive Approaches (cont’d)Interactive Approaches (cont’d)

• Transformational LeadershipTransformational Leadership Is a leader’s ability to influence employees to achieve Is a leader’s ability to influence employees to achieve

more than was originally expected, or thought more than was originally expected, or thought possible.possible.

Generates feelings of trust, admiration, loyalty and Generates feelings of trust, admiration, loyalty and respect from followers through:respect from followers through: Idealized influenceIdealized influence

Inspirational motivationInspirational motivation

Intellectual stimulationIntellectual stimulation

Individualized considerationsIndividualized considerations

e.g Leaders promotes innovation and creativity and e.g Leaders promotes innovation and creativity and subordinates should try new approachessubordinates should try new approaches

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Table 12.Table 12.2 2 Primary Dimensions of Transformational LeadershipPrimary Dimensions of Transformational Leadership

Dimension

Individualizedconsideration

Intellectualstimulation

Inspirationalmotivation

Idealizedinfluence

Leader’s Specific Behavior

Acts as mentor; is attentive to achievement and growth needs.

Promotes innovation and creativity; reframes problems.

Provides meaning and challenge through prosocial, collective action.

Shares risks; is considerate of others over own needs; is ethical and moral.

Follower’s Behavior

Is motivated; feels valued.

Is encouraged to be novel and try new approaches.

Is motivated by team spirit; enthusiastic; optimistic.

Shows admiration; respect; trust.

What is the situational What is the situational approaches to approaches to leadership?leadership?The situational approaches to The situational approaches to

leadership focuses on the situational leadership focuses on the situational factors influencing managerial style.factors influencing managerial style.

It assumes that there is no one best It assumes that there is no one best leadership style i.e. effective leadership leadership style i.e. effective leadership depends on situational factors depends on situational factors

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Situational Factors in Situational Factors in Leadership EffectivenessLeadership Effectiveness

• 1.The leader’s personality, past experiences 1.The leader’s personality, past experiences and expectations.and expectations.

• 2.The expectations and behavior of superiors2.The expectations and behavior of superiors

• 3.Subordinate’s characteristic, expectations 3.Subordinate’s characteristic, expectations and behaviorsand behaviors

• 4.Task requirements4.Task requirements

• 5.Organizational culture and policies5.Organizational culture and policies

• 6.Peers expectation and behavior6.Peers expectation and behavior

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Current Perspectives on LeadershipCurrent Perspectives on Leadership

• Emotional Intelligence (EI)Emotional Intelligence (EI) The capacity to effectively manage ourselves and our The capacity to effectively manage ourselves and our

relationships.relationships. Components of EI:Components of EI:

Personal competence:Personal competence: the ability to understand the ability to understand your own feelings, emotions, and their impact and your own feelings, emotions, and their impact and to understand your strengths and weaknesses to understand your strengths and weaknesses (based on the concept of self-awareness).(based on the concept of self-awareness).

Social competence:Social competence: the ability to understand what the ability to understand what others are feeling (the concept of social others are feeling (the concept of social awareness) and having the skills to work effectively awareness) and having the skills to work effectively with others (based on social skill).with others (based on social skill).

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Table 12.Table 12.33 The Emotional Intelligence Competency FrameworkThe Emotional Intelligence Competency Framework

Social CompetenceSocial awareness

Empathy and insight

Political awareness

Service orientation

Social skill

Developing others

Visionary leadership

Influence

Communication

Change catalyst

Conflict management

Building bonds

Teamwork and collaboration

Synergy in teamwork

Sources: D. Goleman, R. Boyatzis, and A. McKee, Primal Leadership: Realizing the Power of Emotional Intelligence (Boston: Harvard Business School Press, 2003); D. Goleman “Leadership That Gets Results,” Harvard Business Review (March/April 2000): 78–90.

Personal CompetenceSelf-management

Self-control

Trustworthiness

Conscientiousness Adaptability

Achievement orientation

Initiative

Self-awareness

Emotional self-awareness

Accurate self-assessment

Self-confidence

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Current Perspectives on Leadership Current Perspectives on Leadership (cont’d)(cont’d)• Gender and LeadershipGender and Leadership

Female leaders are more empathic, persuasive, Female leaders are more empathic, persuasive, better listeners and more willing to consider others’ better listeners and more willing to consider others’ points of view.points of view.

Male leaders show higher levels of resilience and Male leaders show higher levels of resilience and thoroughness than women leaders.thoroughness than women leaders.

Both men and women executives believe that women Both men and women executives believe that women have to be exceptional to succeed in business.have to be exceptional to succeed in business.

Women leaders feel they must struggle harder than Women leaders feel they must struggle harder than men to succeed.men to succeed.

Women are more likely to use behaviors that are Women are more likely to use behaviors that are associated with transformational leadership.associated with transformational leadership.