Chapter 17: Leadership Creating Effective Organizations Fatal Flaws: Reasons for Derailment of Top Management Rank the following in order of importance. Choose 1 for the reason you feel is most important, 2 for next most important, etc. a) b) c) d) e) f) g) h) i) j) Betrayal of Trust—failure to meet commitments Cold, aloof, arrogant Overdependence on one’s boss or mentor Insensitive to others: abrasive, intimidating Overmanaging: unable to delegate or build a team Unable to think broadly or strategically—too much attention to detail and minor technical problems Unable to adapt to a boss with a different style Unable to select and develop an effective staff Overly ambitious—plays politics, pushes too hard to get ahead Failure to handle specific performance problems—failure to handle problems then not admit the problem, try to cover up or shift blame Source: “What Makes a Top Executive” by McCall and Lombardo, Psychology Today, February 1983 Career Progression and Skill Mix Top Management Conceptual and Human Relations Skills Skill Mix for Success Technical Skills Entry Level Characteristics of Transactional Leadership Establishes goals and objectives Designs work flow and delegates task assignments Negotiates exchange of rewards for effort Rewards performance and recognizes accomplishments Searches for deviations from standards and takes corrective actions Characteristics of Transformational Leadership Charismatic: Provides vision and a sense of mission, gains respect and trust, instills pride Individualized consideration: Gives personal attention, and treats each person individually, coaches Intellectually stimulating: Promotes learning, encourages rationality, uses careful problem solving Inspirational: Communicates high performance expectations, uses symbols to focus efforts, distills essential purposes Theories of Leadership 1. 2. 3. 4. Traits Effectiveness Power Effectiveness Behavior Effectiveness Contingency/Situational Theories Leader Traits Behavior Situations 5. Role Theories Effectiveness. Personality Factors Most Frequently Associated with Effective Leadership Capacity Achievement Responsibility Participation Status Intelligence Scholarship Honesty Activity Socioeconomic position Alertness Knowledge Dependability Sociability Popularity Verbal facility Athletic accomplishment Initiative Cooperation Originality Personality adjustment Persistence Adaptability Aggressiveness Humor Judgment Self-confidence Desire to excel Managerial Grid 9 (1,9) (9,9) Concern for Task 8 7 6 (5,5) 5 4 3 2 (1,1) 1 (9,1) 0 0 1 2 3 4 5 Concern for People 6 7 8 9 Leadership Styles Likert’s System Four – – – – System I—Exploitive Autocratic System II—Benevolent Autocratic System III—Consultative System IV—Participative Group High Source: Hersey and Blanchard. Management of Organizational Behavior: Utilizing Human Resources, 4th ed., ©1982, p. 152. Adapted by permission of Prentice-Hall, Inc., Englewood Cliffs, NJ. Relationship Behavior Hersey and Blanchard’s Situational Leadership Theory Model: Defining Maturity and Four Leadership Styles High relationship Low task High task High relationship S3 S2 S4 S1 Style of Leader Low High task relationship Low Low task relationship Low Mature High M4 High Task Behavior Moderate Low Immature M3 M2 M1 Maturity of Followers A great deal Quite a bit 4 3 Ability Willingness Some 2 Job maturity Usually 4 Often 3 Little 1 On occasion Seldom 2 1 Psychological maturity This person is able (has the necessary knowledge and skill) This person is willing (has the necessary confidence and commitment) Roles of Effective Leaders 1. 2. 3. 4. 5. Systems Thinkers Organization Designers Stewards (Share vision and purpose) Creators of Creative Tension Teachers Source: Peter Senge, 1990 Key Findings from Leadership Theory Transformational leaders inspire higher performance than do transactional leaders Effective leaders must be concerned about accomplishing the task and relationships Effective leaders know when to tell, sell, participate, or delegate Effective leaders understand mission and strategy, know how to implement change, motivate employees to high performance, and teach effectively Effective leaders lead by example and are honest