M360

Leadership
2
The Meaning of Leadership
Leadership is an
influence relationship
among leaders and
followers who strive for
real change and
outcomes that reflect
their shared purposes.
Leader and Manager Qualities
3
4
How Followers Respond to the Influence Tactics of
Leaders
(adapted from Figure 15.1)
Commitment: Followers are
enthusiastic to achieve the leaders
objectives, and they accept the
objectives as their own
Compliance: Followers do what
they are told, but without any
enthusiasm.
Resistance: Followers may appear
to respond but not actually do so.
Or they may get angry and even
sabotage the leaders plan
Most Likely Response
Of Followers
Type of Influence
Tactic Used by Leaders
Charisma
Reward
Coercion
Formal
Position
Expertise
5
Leadership Behaviors (cont.)
Robert Blake and Jane Mouton developed the
managerial grid. The managerial grid is more
complex and identifies five leadership styles
that combine different degrees of concern for
production and concern for people.
6
7
Telling Selling
Participating
Delegating
8
Transactional
Clarify tasks
Initiate structure
Provide awards
Improve productivity
Hard working
Tolerant and fair
minded
Focus on management
Transformational
Innovative
Recognize follower
needs
Inspire followers
Create a better future
Promote significant
change
9
Foundations of Control
Control involves the processes for ensuring that
behaviors and performance conform to an organizations
standards, including rules, procedures, and goals.
Preventive controls are mechanisms intended to reduce
errors and thereby minimize the need for corrective
action.
Corrective controls are mechanisms intended to reduce
or eliminate unwanted behaviors or results and thereby
achieve conformity with the organizations regulations
and standards.
Controls should be linked to the strategic goals of the
organization.

10
Examples of Different Sources and Types of Control
(adapted from Table 10.1)
Types of Control
Source of control Preventive Corrective

Stakeholders Maintaining quotas for hiring Changing recruitment policies
personnel in protected class to attract qualified personnel

Organization Using budgets to guide Disciplining an employee for
expenditures violating a No Smoking
safety regulation in a
hazardous area

Group Advising a new employee about Harassing and socially
the groups norm in relation to isolating a worker who doesnt
expected level of output conform to group norms

Individual Deciding to skip lunch in order Revising a report you have
to complete a project on time written because you are
dissatisfied with it
11
Corrective Control Model
(adapted from Figure 10.2)
1. Define the
System
5. Make
Comparisons
If okay
continue
2. Identify Key
Characteristics
3. Set
Standards
4. Collect
Information
If deviations
6. Diagnose
And Correct
Problems
Copyright 2005 by South-
Western, a division of Thomson
Learning
All rights reserved
12
Primary Organizational Control
Methods
(adapted from Figure 10.3)
Mechanistic
And Organic
Control
Organizational
Control
Market
Control
Financial and
Accounting
Controls
Automation-
Based
Control
13
Mechanistic and Organic Control Methods
(adapted from Table 10.2)
Mechanistic Control Methods

Use of detailed rules and procedures
whenever possible
Top-down authority, with emphasis on
positional power
Activity-based job descriptions that
prescribe day-to-day behaviors
Emphasis on extrinsic rewards (wages,
pensions, status symbols)
Distrust of teams, based on an assumption
that team goals conflict with
organizational goals
Organic Methods

Use of detailed rules and procedures only
when necessary
Flexible authority, with emphasis on expert
power and networks of influence
Results-based job descriptions that
emphasize goals to be achieved
Emphasis on both extrinsic and intrinsic
rewards (meaningful work)
Use of team, based on an assumption that
team goals and norms assist in
achieving organizational goals
14
Market Control
Market control involves the collection of data related to
sales, prices, costs, and profits for guiding decisions and
evaluating results.
Marketing control requires that:
the costs of the resources used in producing outputs be measured
monetarily,
the value of the goods and services produced be defined clearly and
priced monetarily, and
the prices of the goods and services produced be set competitively
Two control mechanisms that meet these requirements are:
Profit-Sharing Plans
Customer Monitoring
15
Financial and Accounting Controls
Financial control includes the mechanisms for
preventing or correcting the misallocation of
resources.
Comparative financial analysis is the
evaluation of a firms financial condition for
two or more time periods.

Copyright 2005 by South-
Western, a division of Thomson
Learning
All rights reserved
16
Automation-Based Control
Automation involves the use of self-regulating
devices and processes that operate
independently of people.
Machine control utilizes self-regulating
instruments or devices to prevent and correct
deviations from preset standards.
Copyright 2005 by South-
Western, a division of Thomson
Learning
All rights reserved
17
Corporate Governance
A corporation is a government-approved form
of organization that allows different parties to
contribute capital, expertise, and labor for the
benefit of all of them.
Corporate governance is the pattern of
relations and controls between the
stockholders, the board of directors, and the
top management of a company.
Copyright 2005 by South-
Western, a division of Thomson
Learning
All rights reserved
18
Corporate Governance (cont.)
External control mechanisms
Sarbanes-Oxley Act
Criminal Accountability
Whistleblower Protection
Internal control mechanisms
Board of Directors
Independent
Self-Assessment
Executive Compensation
Evaluation of CEO
Resource Allocation
Fiduciary Responsibility and Control
19
Feedback Control Model