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Chapter

12

Leadership

What is Leadership

Who is a Leader

What is the difference between a


Manager and a Leader

MANAGING AND LEADING


Leadership is

The process of directing, controlling, motivating, and


inspiring staff toward the realization of stated
organizational goals

A leader is one who

Influences others to attain goals.


Challenge the process
Inspire a shared vision etc.
Facilitates or guides the followers as a coach and
mentor so they may turn into leaders themselves.

Sources Of Power

Authority

Control over
rewards

Expertise
Power

Appealing
personal
characteristics

Control over
punishments

Power And Leadership


Power
Power

is central to effective leadership. It is the ability to


influence other people

Sources

of power

legitimate

power - leader has organizational authority

employees are obligated to comply with legitimate orders

reward

power - leader has control over valued rewards


coercive power - leader has control over punishments
referent power - leader has personal characteristics that appeal
to others and make them desirous of the leaders approval
expert power - leader has knowledge that others feel will be of
benefit to them

Traditional Approaches To
Understanding Leadership
Trait

theories assume certain measurable


characteristics exist that are unique to leaders

Behavioural

theories attend only to observable


behaviours and how leaders act

Situational

and contingency approaches emphasize


contextual factors as key to leadership
effectiveness

Traditional Approaches To
Understanding Leadership
Leader

traits

trait

approach - focussed on individual leaders to determine


the personal characteristics that great leaders share
characteristics that distinguish effective leaders
drive - characteristics that reflect a high level of effort
leadership motivation - they want to lead
integrity - actions correspond to words
self-confidence - expectation that one is able to overcome
obstacles and make good decisions in the face of uncertainty
knowledge of the business - ability to interpret information
ability to perceive the needs of others and to adjust ones
behavior accordingly

Traditional Approaches To
Understanding Leadership (cont.)
Leader

behaviors (behavioral approach) - sought to


identify what behaviors good leaders exhibit
task

performance - leaders efforts to ensure that the work unit


reaches its goals

focus on work speed, quality and quantity of output, and rules

group

maintenance - actions taken to ensure satisfaction of


the group members
develop and maintain harmonious work relationships
leader-member exchange theory - focuses on the leaders
behavior toward individuals on a personal basis

focus is primarily on group maintenance behaviors (e.g., trust, open


communication, mutual respect, mutual loyalty etc.)

Traditional Approaches To
Understanding Leadership (cont.)
Leader

behaviors (cont.)

participation

in decision making - leader behaviors that


managers perform in involving their employees in making
decisions
autocratic leadership - makes decisions and then announces
them to the group
democratic leadership - solicits input from others

uses consensus or majority vote to make the final choice

Traditional Approaches To
Understanding Leadership (cont.)
Leader

behaviors (cont.)

Blake and Moutons Leadership Grid


described a wide range of leadership styles
recommended a 9,9 style that is high on concern for people and
high on concern for production
ignores the effect of the situation

Low

Team
Management
(9,9)

Country Club
Management
(1,9)

Middle of the Road


Management
(5,5)

4
1

Concern for People

High

The Leadership Grid

Impoverished
Management
(1,1)
1
Low

AuthorityCompliance
(9,1)
4

Concern for Production

9
High

Traditional Approaches To
Understanding Leadership (cont.)
Situational approaches to leadership
leadership

perspectives proposing that universally important


traits and behaviors do not exist, and that effective leadership
behavior varies from situation to situation

requires the leader to first analyze the situation and then decide
what to do

Tannenbaum

and Schmidt - three factors must be considered


before deciding how to lead

Forces in the manager (managers personal values, inclinations, feeling


of security and confidence in subordinates etc.)
Forces in the subordinate (knowledge, experience, interest in the task,
understanding and acceptance of organizational goals.)
Forces in the situation (nature of problem, information needed to solve
this, time available, group coherence etc. )

arguments remain valid today

Traditional Approaches To
Understanding Leadership (cont.)
Situational

approaches to leadership (cont.)

Vroom

model - focuses on how leaders go about making


decisions

seven situational factors used to analyze problems

answering a series of questions about the problem attributes


leads one to 14 possible endpoints of the analysis

each based on a problem attribute


scored as either high or low

each endpoint recommends one of five decision styles


decision styles indicate that there are several shades of
participation

use of the model ensures that important situational factors are


considered

Vrooms Situational Factors For


Problem Analysis
DECISION SIGNIFICANCE

The significance of the decision to the success


of the project or organization

IMPORTANCE OF
COMMITMENT

The importance of team members commitment


to the decision

LEADERS EXPERTISE

Your knowledge or expertise in relation to this


problem

LIKELIHOOD OF
COMMITMENT

The likelihood that the team would commit itself


to a decision that you might make on your own

GROUP SUPPORT FOR


OBJECTIVES

The degree to which the team supports the


organizations objectives at stake in this problem

GROUP EXPERTISE

Team members knowledge or expertise in


relation to this problem

TEAM COMPETENCE

The ability of team members to work together


in solving problems

Vrooms Leader Decision Styles

Decide
0

Consult
Individually
3

Consult Group
5

Facilitate
7

Delegate
10

Area of freedom
for subordinates
Use of authority
by manager

Vrooms Model Of Leadership Style

Team
Competence

Group Expertise

Group Support

Decision
Significance

Importance of
Commitment

Leader Expertise

Likelihood of
Commitment

Vrooms Model Of Leadership Style

Instructions: The Matrix operates like a


funnel. You start at the left with a
specific decision problem in mind. The
column headings denote situational
factors which may or may not be present
in that problem. You progress by
selecting High or Low (H or L) for each
relevant situational factor. Proceed down
from the funnel, judging only those
situational factors for which a judgment is
called for, until you reach the
recommended process.

Vrooms Leader Decision Styles

Decide
0

Consult
Individually
3

Consult Group
5

Facilitate
7

Delegate
10

Area of freedom
for subordinates
Use of authority
by manager

Contemporary Perspectives On
Leadership
Charismatic
dominant

leadership

and exceptionally self-confident, with a strong


conviction in the moral righteousness of their beliefs
communicate high expectations for and confidence in
followers
articulates ideological goals
inspire their followers trust, confidence, acceptance,
obedience, emotional involvement, affection, admiration, and
higher performance

Contemporary Perspectives On
Leadership (cont.)
Transactional

leadership

traditional

management through business transactions


leaders who manage through using their legitimate, reward,
and coercive powers to give commands and exchange rewards
for services rendered
dispassionate leadership that does not inspire people to focus
on the interests of the organization
Transformational
moves

leadership

beyond transactional leadership


transforms a vision into reality and motivates people to
transcend their personal interests for the good of the group

Contemporary Perspectives On
Leadership (cont.)
Transformational
generating

leadership (cont.)

excitement - three ways

they are charismatic


provide individualized attention - do not treat everyone alike

assign challenging work to deserving people


provide one-on-one mentoring to develop their people

they are intellectually stimulating - arouse an awareness of


problems and potential solutions

articulate the organizations opportunities, threats, strengths, and


weaknesses
stir the imagination and generate insights

Thank You

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