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Leadership

Chapter

14
1

Overview
What

effective leadership is and the


sources of power that enable managers
to be effective leaders.
The traits that show the strongest
relationship to leadership, the behaviors
leaders engage in, and the limitations of
the trait and behavioral models of
leadership.
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The Nature of Leadership


Leadership

Exact definition is difficult because it can be


relative. Methods and manners can vary with
circumstances and culture (both national and
corporate). The situation can define the style that
will succeed and context evolves (e.g., the rise of
team structure and its effect on leadership style).
Using position, power, personality and persuasion
to inspire, motivate and direct others to achieve
group goals.
Whatever makes others follow.
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The Nature of Leadership


Personal Leadership Style

The specific ways managers choose to


influence others reflects their personality
and management style.
Managers at all levels need
to consciously develop
an effective leadership
style.
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Leadership Across Cultures


Leadership styles MAY vary among different
countries or cultures.

European managers tend to be more peopleoriented than American or Japanese managers.


Japanese managers are group-oriented and stress
process control while U.S managers focus more
directly on performance and goal-achievement.
Time horizons (short versus long) also are affected
by cultures.
But be careful about assuming cultural influence
because experience in other cultures can change
people.
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Power: The Key to Leadership


Legitimate

The authority managers have by virtue of their


position in the firm (hiring and firing)

Reward

Power

Power

A managers ability to give or withhold tangible and


intangible rewards (pay raises, at-a-girls) that
signal employees they are doing a good/bad job.

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Power: The Key to Leadership


Coercive

Power

A managers ability to punish others.


Examples:

verbal reprimand, pay cuts, dismissal


Limited effectiveness; can have negative side effects.
Expert

Power

Power based on special knowledge, skills, and


expertise.
First-line

and middle managers have the most expert


power; most often consists of technical ability.
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Power: The Key to Leadership


Referent Power

Power and loyalty that comes from


subordinates and coworkers respect and
admiration for a leaders capability and
personal characteristics
Usually gained by likable managers
concerned about their workers as well as
getting the job done properly
The most effective form of leadership
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Empowerment: An Ingredient in
Modern Management
Empowerment

The process of giving workers at all levels


more knowledge and authority
to make decisions and to
take responsibility
for their outcomes.

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Empowerment: An Ingredient in
Modern Management

Empowerment:
Involves

workers in decisions.
Increases worker commitment and motivation.
Frees managers to focus on other issues by delegating
responsibility.
Usually delivers better results.

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Leadership Models
Trait Model

Attempts to identify personal characteristics


that cause effective leadership.
Research

shows that certain personal


characteristics appear to be connected to
effective leadership.
Many traits are the result of skills and
knowledge and effective leaders do not
necessarily possess all of them.
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Leadership Models
Behavioral Model(Ohio State Studies)
Consideration:

employee-centered leadership
behavior indicating that a manager trusts,
respects and cares about subordinates
Initiating structure: job-oriented leadership
behavior that managers engage in to ensure that
work gets done, subordinates perform their jobs
acceptably, and the organization is efficient and
effective (example: forming a team)
Both behaviors are independent and managers
can be high or low on either.
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Contingency Models of Leadership


Fiedlers Model

Effective leadership is contingent on both the


characteristics of the leader and of the situation.
Leader style is the enduring, characteristic
approach to leadership that a manager uses and
does not readily change.
Relationship-oriented

style: leaders concerned with


developing good relations with their subordinates and to be
liked by them.
Task-oriented style: leaders whose primary concern is to
ensure that subordinates perform at a high level so the job
gets done.
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Fiedlers Model
Situation Characteristics

How favorable a situation is for leading to occur.


Leader-member relationsdetermines how much
workers like and trust their leader.
Task structurethe extent to which workers tasks
are clear-cut; clear issues make a situation
favorable for leadership.
Position Powerthe amount of legitimate, reward,
and coercive power leaders have due to their
position. When positional power is strong, leading is
easier.
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Fiedlers Model in Application


Combines considerations of leader-member
relations, task structure, and position power
to identify leadership situations.

Identifies situations where given types of


managers might perform best.
Leadership style is a characteristic most managers
cannot change; managers will be most effective
when placed in situations that suit their leadership
style or that can be changed to suit their style.
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Cognitive Resource theory


Fiedler

reconceptualized the original


theory by initiating the role of stress.
Heresy and Blanchard Situational
Theory: which focuses on the
followers:
Readiness and willingness
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Houses Path-Goal Theory


A contingency model of leadership proposing
that effective leaders can motivate
subordinates by:
1.

2.

3.

Clearly identifying the outcomes workers are


trying to obtain from their jobs.
Rewarding workers with their desired outcomes in
return for high performance and goal attainment
Clarifying the paths to goal attainment, removing
obstacles, and expressing confidence in workers
ability.
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Motivating with Path-Goal


Path-Goal identifies four leadership behaviors:
Directive behaviors: set goals, assign tasks,
show how to do things.
2.
Supportive behavior: look out for the workers
best interest.
3.
Participative behavior: give subordinates a say in
matters that affect them.
4.
Achievement-oriented behavior: setting
challenging goals and believing in workers
abilities.
Which to use depends on the nature of the
subordinates and the task.
1.

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Path goal theory

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Leader member exchange theory


Theory

that supports leaders creation


of in groups and out groups:
subordinates with in group status will;
have higher performance ratings less
turnover and greater job satisfaction.

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Decision theory: Vroom and Yettons


leader participation model
Relates

leader behavior and


participation in decision making based
on contingency variables:

IMPORTANCE OF DECISION
IMPRTANCE OF OBTAINING FOLLOWER COMMITMNET TO THE DEICISON
INFORMATION HELD BY LEADER
DEGREE OF STRUCTURE IN PROBLEM
WHETHER FOLLOWERS BUY INTO THE ORGANISATION GOLS
WHETHER AN AUTOCRATIC DECISION WOULD RECEIVE FOLLOWER COMMITMNET
WHETHER THERE IS LIKELY TO BE CONFLICT AMONG FOLLOWERS OVER SOLUTION ALTERNATIVES
WHETHER THE FOLLOWERS HAVE NECESSARY INFORMATION TO MAKE GOOD DECISION
TIME CONSTRAINT ON THE LEADER THAT MAY LIMIT FOLLOWER INVOLVEMENT
WHETHER COST TO BRING GEOGRAPHICALLY DISPERSED MEMBER IS JUSTIFIED
IMPORTANCE OF THE LEADER OF MINIMISING THE TIME IT TAKES TO MAKE DECISION
IMPORTANCE OF USING PARTICIPATION AS A TOOL FOR DEVELOPING FOLLOWER DECISION MAKING SKILL

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GLOBAL implications
EUROPEAN

LEADERSHIP STYLE:

UK.IRELAND AND SPAIN( SELF MOTIVATED AND HIGHLY


CHARISMATIC.
SWEDEN AND FINLAND:TEAM SPIRIT.

FRENCE: STRATEGIC THINKERS,PURSUE PERSONAL AGENDAS

GERMANY AND AUSTRIA: AUTHORITY BASED LEADERS

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ASIAN PERSPECTIVE
INDIA:

HIGH SCORE OF 77 IN TERMS OF


POWER DISTANCE (56.5)
LONG TERM ORIENATATION: 61(48)
UNCERTANITY AVOIDANCE: 40(65)
INDIVIDUALISIM( 48 AGAINST WORLD 40.
KARTA, AUTHORITIAN LEADERSHIP IS
OPTIMUM
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LEADERSHIP ACROSS THE


GLOBE
BRAZIL:

TEAM ORIENTED,PARTCIPATIVE
AND HUMANE( HIGH LPC SCORE)
FRANCE: BUREAUCRATIC)
EGYPT: TEAM ORIENTED AND
PARTICIPATIVE
CHINA: HIGH PERFORMANCE
ORIENTATION,POLITE CONSIDERATE AND
UNSELFISH
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The Leader Substitutes Model


Leadership Substitute

Acts in place of a leader, making leadership


unnecessary. Possible substitutes can be found in
skilled, motivated subordinates or the extent to
which work is interesting and fun.
Worker empowerment or self-managed work
teams reduce leadership needs.
Managers should be aware that they do not always
need to exert direct influence over workers.
(DONT MICRO-MANAGE). A good leader is
always trying to work himself out of leadership and
his people into it.
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Transformational Leadership
Leadership that:

Makes subordinates aware of the importance of


their jobs and performance to the organization by
providing feedback.
Makes subordinates aware of their own needs for
personal growth and development.
Motivates workers to work for the good of the
organization, not just themselves.
INSPIRES WORKERS TO ACHIEVE MORE THAN
THEY THINK THEY CAN.
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Being a Charismatic Leader


Charismatic Leader

An enthusiastic, self-confident transformational


leader able to paint a vision of how good things
could be by:
Clearly

communicating excitement to subordinates.


Openly sharing information so that everyone is aware of
problems and the need for change.
Empowering workers to help with solutions.
Developing employees by helping them build skills.

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Transactional Leadership
Transactional Leaders

Use their reward and coercive powers to


exchange rewards for performance and
punish failure.
Push subordinates to change, but do not
seem to change themselves.
Do not have the vision of a
transformational leader.
Can be effective, but not the best way.
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Transactional Vs
Transformational
Transactional
Contingent reward
Management By
Exception:
active/passive
Laissez Free

Transformational
Idealized Influence
Inspirational Motivation
Intellectual; Stimulation
Individualized
Consideration

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Developmental Consideration
Behavior a leader engages in to support
and encourage followers and help them
develop and
grow on the job.
Follow me and
you will have an
opportunity to grow
with the company.
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Gender and Leadership


The number of top-level women managers is
rising but still relatively low

Stereotypes (and some recent research) suggest


women are more supportive and concerned with
interpersonal relations while men are more taskfocused.
Women

may be perceived as more participative than men


because they adopt a participative approach to overcome
resistance to them as managers.
ALTHOUGH STYLE MAY BE SOMEWHAT GENDERRELATED, LEADERSHIP ITSELF IS NOT! SOME OF MY
MOST EFFECTIVE LEADERS WERE WOMEN.
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Contemporary Leadership Roles


Career

Functions:
Lobbying
Coaching
Assisting
Protecting
Sponsoring
Psychological Functions:
Counseling
Sharing personal experience
Friend
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Trust
Is

a positive expectation that another will not


act opportunistically
Key Dimension( Integrity, competence,
conistenency,loyalty)
Three type of trust:
Deterrence Based Trust
Knowledge based trust
Identification based trust
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