What is Leadership?

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Chapter 15
Leadership
Effective Management, by Williams
South-Western College Publishing
Copyright © 2002
2
What Would You Do?
Leadership at Microsoft
Growing bureaucracy
Where is the company going?
What makes a good leader?
How should leaders behave?
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South-Western College Publishing
Copyright © 2002
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Learning Objectives
What is Leadership?
After discussing this section,
you should be able to:
explain what leadership is
describe who leaders are and what effective
leaders do
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South-Western College Publishing
Copyright © 2002
4
Leadership
Leaders versus Managers
Substitutes for Leadership
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Managers versus Leaders
Managers
•
•
•
•
•
•
Do things right
Status quo
Short-term
Means
Builders
Problem solving
Leaders
•
•
•
•
•
•
Do the right thing
Change
Long-term
Ends
Architects
Inspiring & motivating
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Substitutes for Leadership: Do
Leaders Always Matter?
Leadership substitutes
subordinate, task, or organizational
characteristics
make leaders redundant or unnecessary
Leadership neutralizers
subordinate, task, or organizational
characteristics
interfere with a leader’s actions
Leaders don’t always matter
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7
Leadership Substitutes & Neutralizers
Characteristic
Subordinate Characteristics
 Ability, experience, training, knowledge
 Need for independence
 Professional orientation
 Indifference toward organizational rewards
Task Characteristics
 Unambiguous and routine tasks
 Performance feedback provided by the
work itself
 Intrinsically satisfying work
Organizational Characteristics
 Formalization, meaning specific plans,
goals, and areas of responsibility
 Inflexibility, meaning rigid, unbending rules
and procedures
 Highly specified staff functions
 Cohesive work groups
 Organizational rewards beyond a leader's
control
 Spatial distance between supervisors and
subordinates
Adapted Table 15.1
People-Related
Leadership Behaviors
Task-Related
Leadership Behaviors
Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Substitute, Neutralize
Neutralize
No effect
No effect
Substitute, Neutralize
Substitute, Neutralize
Substitute, Neutralize
Neutralize
No effect
Neutralize
No effect
Neutralize
No effect
Substitute, Neutralize
Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Neutralize
Neutralize
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Who Leaders Are and What Leaders
Do
Leadership
Behaviors
Leadership
Traits
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9
Leadership Traits
Drive
Desire to
Lead
Honesty/
Integrity
Emotional
Stability
Cognitive
Ability
Selfconfidence
Knowledge
of the
Business
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What Really Works?
Traits & Perceptions of Leadership Effectiveness
Intelligence
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success
75%
Dominance
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success 57%
Extroversion
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success
63%
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What Really Works? (cont’d)
11
Charisma & Leadership Effectiveness
Performance & Charisma
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success
72%
Charisma & Perceived Leader Effectiveness
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success
89%
Charisma & Leader Satisfaction
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success
90%
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Leadership Behaviors
Initiating structure
clarifies follower roles and duties
job-centered or concern for production
Consideration
creating a supportive environment
employee-centered or concern for people
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Behavioral Theories
Study
Initiating Structure Consideration
Michigan
X
Texas
X
X
Ohio State
X
X
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Blake/Mouton Leadership Grid
High
9
1,9 Country Club Management
9,9 Team Management
Thoughtful attention to needs of
people for satisfying relationships
leads to a comfortable, friendly
organization atmosphere &
work tempo.
Work accomplishment is from
committed people; interdependence
through a “common stake” in
organization purpose leads to
relationships of trust & respect.
Concern for People
8
Low
7
6
5,5 Middle of the Road Management
Adequate organization
performance is possible through
balancing the necessity to get out
work with maintaining morale of
people at a satisfactory level.
5
4
9,1 Authority-Compliance
1,1
3 Impoverished Management
Exertion of minimum effort
to get required work done is
appropriate to sustain
organization membership.
2
1
1
Adopted from Figure 15.2
Low
2
3
4
5
Efficiency in operations results
from arranging conditions of
work in such a way that
human elements interfere to a
minimum degree.
6
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High
Concern for Production
15
Learning Objectives
Situational Leadership
After discussing this section,
you should be able to:
explain Fiedler’s contingency theory.
describe how path-goal theory works.
discuss Hersey & Blanchard’s situational theory.
use the normative decision model when deciding
just how you will make decisions as a leader.
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Putting Leaders in the Right Situtation:
Fiedler’s Contingency Theory
Leadership Style:
Least Preferred
Co-worker
16
Situational
Favorableness
Matching Leadership
Styles to
Situations
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Fiedler’s Contingency Theory
Situational
Favorableness
Group
Performance
=
Leadership Style
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Leadership Style: Least Preferred
Co-Worker
18
Leadership style is the way a leader
generally behaves towards followers
stable and difficult to change
Measured by the Least Preferred Coworker scale
relationship-oriented
task-oriented
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Situational Favorableness
How a particular situation affects a
leader’s ability to lead
Three factors
Leader-member relations
Task structure
Position power
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Situational Favorableness
LeaderMember
Relations
Task
Structure
Position
Power
Situation
Adapted From Figure 15.5
Good
Good
Good
Good
Poor
Poor
Poor
High
High
Low
Low
High
High
Low
Strong
Weak Strong Weak Strong Weak
I
II
Favorable
III
IV
V
Moderately Favorable
Strong
VI
VII
Unfavorable
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Copyright © 2002
Matching Leadership Styles to
Situations
Good
Bad
LeaderMember
Relations
Task
Structure
Position
Power
Situation
Adapted From Figure 15.6
Good
Good Good Good
Poor
Poor
Poor
High
High
High
High
Low
Low
Low
Strong Weak Strong Weak Strong Weak Strong
I
II
Favorable
III
IV
V
Moderately Favorable
VI
VII
Unfavorable
21
TaskOriented
Leaders
RelationshipOriented
Leaders
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Adapting Leader Behavior:
Path-Goal Theory
Four Leadership
Styles
Subordinate
and
Environmental
Contingencies
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Path-Goal Theory
Subordinate Contingencies
• Perceived Ability
• Locus of Control
• Experience
Leadership Styles
•
•
•
•
Directive
Supportive
Participative
Achievement-Oriented
Outcomes
• Subordinate Satisfaction
• Subordinate Performance
Environmental Contingencies
Adapted From Figure 15.7
• Task Structure
• Formal Authority System
• Primary Work Group
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Leadership Styles
Directive
clarifying expectations and guidelines
Supportive
being friendly and approachable
Participative
allowing input on decisions
Achievement-Oriented
setting challenging goals
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Subordinate & Environmental
Contingencies
Subordinate
Perceived ability
Locus of control
Experience
25
Environmental
Task structure
Formal authority
system
Primary work group
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When to Use Each of the Four
Leadership Styles










Directive Leadership
Unstructured tasks
Inexperienced workers
Workers with low perceived ability
Workers with external locus of
control
Unclear formal authority system




26
Supportive Leadership
Structured, simple, repetitive
tasks
Stressful, frustrating tasks
When workers lack confidence
Clear formal authority system
Participative Leadership
Achievement-Oriented Leadership
Experienced workers
 Unchallenging tasks
Workers with high perceived
ability
Workers with internal locus of
control
Workers not satisfied with rewards
Complex tasks
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Adapting Leader Behavior:
Hersey & Blanchard’s Situational Theory
Worker
Maturity
Leadership
Styles
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Worker Maturity
Ability and willingness to take
responsibility for one’s own work behavior
Job maturity
amount of knowledge, skill, ability, and
experience people possess
Psychological maturity
a person’s feeling of self-confidence or selfrespect
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Leadership Styles
Telling
 high task & low
relationship
 one-way
communication
Selling
 high task and high
relationship
 two-way
communication and
psychological support
Participating
 low task and high
relationship
 two-way
communication and
shared decision
making
Delegating
 low task and low
relationship
 employees on their
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Adapting Leader Behavior:
Normative Decision Theory
Decision
Styles
Decision
Quality and
Acceptance
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Decision Styles
Style
AI - Autocratic
AII - Less autocratic
C1- Consultative
CII - More consultative
GII - Group decision
Explanation
Solve the problem yourself using the information
you have.
Obtain the needed information from workers; then
solve the problem yourself. Workers provide
information but not alternatives.
Share the problem with workers individually
(but not as a group), seeking suggestions &
possible alternatives. Solve the problem yourself.
Share the problem with workers as a group, seeking
suggestions & possible alternatives. Solve yourself.
Share the problem with workers as a group,
seeking suggestions & possible alternatives.
Attempt to reach a consensus & be willing to
accept & implement the workers’ solution.
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Decision Quality and Acceptance
Using the right amount of employee
participation:
 improves decision quality
improves acceptance
Decision tree helps leader identify optimal
level of participation
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Decision Rules to Increase Decision
Quality
33
Quality Rule
 If the quality of the decision is important, then don't
use an autocratic decision style
Leader Information Rule
 If the quality of the decision is important, and if the
leader doesn't have enough information to make the
decision on his or her own, then don't use an
autocratic decision style
Subordinate Information Rule
 If the quality of the decision is important, and if the
subordinates don't have enough information to
make the decision themselves, then don't use a
group decision style
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Copyright © 2002
Decision Rules to Increase Decision
Quality (cont’d)
34
Goal Congruence Rule
 If the quality of the decision is important, and
subordinates' goals are different from the
organization's goals, then don't use a group decision
style
Problem Structure Rule
 If the quality of the decision is important, the leader
doesn't have enough information to make the
decision on his or her own, and the problem is
unstructured, then don't use an autocratic decision
style
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South-Western College Publishing
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Decision Rules to Increase Decision
Acceptance
35
Commitment Probability Rule
If having subordinates accept and commit to
the decision is important, then don't use an
autocratic decision style
Subordinate Conflict Rule
If having subordinates accept the decision is
important and critical to successful
implementation and subordinates are likely
to disagree or end up in conflict over the
decision, then don't use an autocratic or
consultative decision style
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South-Western College Publishing
Copyright © 2002
Decision Rules to Increase Decision
Acceptance (cont’d)
36
Commitment Requirement Rule
If having subordinates accept the decision is
absolutely required for successful
implementation and subordinates share the
organization's goals, then don't use an
autocratic or consultative style
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The Decision Tree
N
Y
N
N
Y
AI
Y
Y
Y
GII
AI
N
Y
N
Y
N
AII
N
Y
AI
N
Y
N
AI Y
N
Y
N
CII
Y
N
AII
CII
GII
Y CII
N CI
Y
GII
N
CII
Adapted From Figure 15.9
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Learning Objectives
Strategic Leadership
After discussing this section,
you should be able to:
explain how visionary leadership (i.e. charismatic
and transformational leadership) helps leaders
achieve strategic leadership.
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Visionary Leadership
Charismatic
Leadership
Transformational
Leadership
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Charismatic Leadership
Creates an exceptionally strong
relationship between leader and follower
Lead by:
articulating a clear vision, based on values
role modeling values
communicating high performance
expectations
displaying confidence in followers
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Types of Charismatic Leaders
Ethical Charismatics
provide developmental opportunities
recognize follower contributions
concerned with the interests of the group
Unethical Charismatics
control and manipulate followers
want positive feedback
motivated by self-interest
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Transformational Leadership
Generates awareness and acceptance of
group’s purpose and mission
Gets employees to see beyond their own
needs and self-interest
Goes beyond charismatic leadership
Different than transactional leadership
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Transformational Leadership
Components
Charismatic leadership/idealized
influence
Inspirational motivation
Intellectual stimulation
Individualized consideration
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What Really Happened?
Leadership at Microsoft
Balmer “mellows-out”
Exhibits more considerate behaviors
Becoming a “leader of leaders”
Strategy and vision are important
Effective Management, by Williams
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Copyright © 2002
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