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Bateman
Snell
Management
Competing
in the
New Era
5th
Edition
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
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Part Four
Chapter 12 - Leadership
Chapter Outline
Vision
Leading and Managing
Leading and Following
Power and Leadership
Traditional Approaches to Understanding
Leadership
Contemporary Perspectives on Leadership
Developing Your Leadership Skills
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives
After
studying Chapter 12, you will know:
 what
it means to be a leader
 how a good vision helps you be a better leader
 how to understand and use power
 the personal traits and skills of effective leaders
 the behaviors that will make you a better leader
 what it means to be a charismatic and transformational leader
 how to further your own leadership development
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Vision
Vision
a
mental image of a possible and desirable future state of the
organization
 having a vision and communicating it to others are essential
components of great leadership
 the best visions are both:
ideal
- communicates a standard of excellence and clear choice
of positive values
unique - communicates and inspires pride in being different
from other organizations
 can
exist throughout all organizational levels
 visions can be inappropriate
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Leading And Managing
Ability
to lead effectively sets excellent managers apart
from average ones
 managers
deal with ongoing organizational activities
planning
 leadership
creating
and budgeting routines, structuring the organization
includes orchestrating organizational change
a vision for the firm and inspiring people to attain it
 management
and leadership are both vitally important
 supervisory leadership - provides guidance, support, and
corrective feedback for day-to-day activities of work unit
members
 strategic leadership - gives purpose and meaning to
organizations
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Leading And Following
Organizations
succeed or fail because of how well
followers follow
 effective
followers:
are
capable of independent thinking
are actively committed to organizational goals
are enthusiastic about ideas and purposes beyond their own self
interest
master skills that are useful to the organization
hold performance standards that are higher than required
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Power And Leadership
Power
 ability
Sources
to influence other people
of power
 legitimate
power - leader has organizational authority
 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 leader’s
approval
 expert power - leader has knowledge that others feel will be
of benefit to them
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Sources Of Power
Authority
Control over
rewards
Expertise
Power
Appealing
personal
characteristics
Control over
punishments
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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 - desire 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 one’s
behavior accordingly
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Traditional Approaches To
Understanding Leadership (cont.)
Leader
behaviors
 behavioral
approach - sought to identify what behaviors
good leaders exhibit
 Task performance - leader’s efforts to ensure that the work
unit reaches its goals
focus
on work speed, quality and quantity of output, and rules
 Group
maintenance - ensure the satisfaction of group
members
develop
and maintain harmonious work relationships
Leader-Member Exchange (LMX) theory - focuses on the
leader’s behavior toward individuals

maintenance behaviors
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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
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Traditional Approaches To
Understanding Leadership (cont.)
Leader
 The
behaviors (cont.)
effects of leader behavior
decision
styles - characteristics of the situation, leader, and the
follower determine the appropriate decision-making style

laissez-faire - leadership philosophy characterized by an absence of
managerial decision making
performance
and maintenance behavior - are independent of
each other

Ohio State studies - grievances and turnover
 were lower when supervisor was high on maintenance behavior
 were higher when supervisor was high on task performance
behavior
 when leader must be high on performance-oriented behavior,
s/he should also be maintenance-oriented
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Traditional Approaches To
Understanding Leadership (cont.)
Leader
 The
behaviors (cont.)
effects of leader behavior (cont.)
performance
and maintenance behavior (cont.)
Michigan studies - most effective managers were task oriented
 effective managers also were relationship oriented
 taken together, Ohio State and Michigan research suggested that
the ideal leader is always both performance and maintenance
oriented
 Blake and Mouton’s 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

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The Leadership Grid
High
Country Club
Management
(1,9)
Team
Management
(9,9)
Middle of the Road
Management
(5,5)
Low
Impoverished
Management
(1,1)
1
Low
2
3
4
AuthorityCompliance
(9,1)
5
6
7
Concern for Production
8
9
High
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Traditional Approaches To
Understanding Leadership (cont.)
Situational
approaches to leadership
 leadership
perspective 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
forces in the manager
 forces in the subordinate
 forces in the situation

arguments
remain valid today
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Traditional Approaches To
Understanding Leadership (cont.)
Situational
approaches to leadership (cont.)
 Vroom-Yetton-Jago
model - focuses on how leaders go about
making decisions
seven
situational factors used to analyze problems
each based on a problem attribute
 scored as either high or low

answering
a series of questions about the problem attributes
leads one to 14 possible endpoints of the analysis
each endpoint recommends one of five decision styles
 decision styles indicate that there are several shades of
participation

use
of model ensures that important situational factors are
considered
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Vroom’s 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
LEADER’S 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
organization’s 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
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
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Figure 12.3
The Vroom-Yetton-Jago model
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Figure 12.3
The Vroom-Yetton-Jago model
Instructions: The Matrix operates like a
funnel. You start at the left with a
specific decisions 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.
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Vroom’s 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
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Traditional Approaches To
Understanding Leadership (cont.)
Situational
approaches to leadership (cont.)
 Path-goal
theory - concerns how leaders influence
subordinates’ perceptions of their work goals and the paths
they follow toward attainment of those goals
factors
that determine appropriate leader behavior include:
personal characteristics of the followers
 authoritarianism
 locus of control
 ability
 environmental pressures with which followers must cope
 people’s tasks
 formal authority system of the organization
 primary work group

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Traditional Approaches To
Understanding Leadership (cont.)
Situational
 Path-goal
four
approaches to leadership (cont.)
theory (cont.)
pertinent leadership behaviors
directive leadership
 supportive leadership
 participative leadership
 achievement-oriented leadership

theory
suggests that the leader should:
make the path to work goals easier to travel by providing coaching
and direction
 reduce frustrating barriers to goal attainment
 increase opportunities for personal satisfaction by increasing
payoffs to people for achieving performance goals

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The Path-Goal Framework
Characteristics
of followers
Appropriateness of
1. Directive,
determine 2. Supportive,
3. Participative, or
4. Achievement
leader behaviors
leading to
Followers’
goals and
performance
Environmental
factors
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Traditional Approaches To
Understanding Leadership (cont.)
Situational
approaches to leadership (cont.)
 Substitutes
for leadership - factors in the workplace that can
exert the same influence on employees that leaders would
provide
certain
follower, task, and organizational factors are substitutes
for task performance-oriented and group maintenance-oriented
leader behaviors
practical implication of this idea
create situations in which substitutes for leadership operate
 leader will require less time in attempts to influence people

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Contemporary Perspectives On
Leadership
Charismatic
leadership
 dominant
and exceptionally self-confident, and have a strong
conviction in the moral righteousness of their beliefs
 articulates ideological goals
 inspire their followers trust, confidence, acceptance,
obedience, emotional involvement, affection, admiration, and
higher performance
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Contemporary Perspectives On
Leadership (cont.)
Transactional
leadership
 traditional
management through business transactions in
which leaders use 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
leadership
 moves
beyond transactional leadership
 a leader who transforms a vision into reality and motivates
people to transcend their personal interests for the good of
the group
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Contemporary Perspectives On
Leadership (cont.)
Transformational
 Generating
leadership (cont.)
excitement - three ways
they
are charismatic
provide individualized attention
they are intellectually stimulating
 Skills
and strategies - rely on four
have
a vision
communicate their vision
build trust
have a positive self-regard
 Transforming
leaders - training available to stimulate
transformational leadership
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Contemporary Perspectives On
Leadership (cont.)
Post-heroic
 even
leadership
great top executives can’t solve all problems on their
own
 effective leadership must permeate the organization
leader
must spread leadership abilities throughout the firm
make heroes out of those who figure out what needs to be done
and then do it
A note
 need
on courage
courage to:
create
and execute a vision
take reasonable risks
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Classic Contingency Models Of
Leadership
Fiedler’s
 leader
the
contingency model
effectiveness depends on two factors
personal style of the leader
task-motivated - primary emphasis on completing the task
 low Least Preferred Coworker (LPC)
 relationship-motivated - emphasizes maintaining good
interpersonal relationships
 high LPC

degree
to which the situation gives the leader power, control,
and influence over the situation

different situations dictate different leadership styles
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Fiedler’s Analysis Of Situations
Leadermember
relations
Task
structure
Leader
position
power
Good
Structured
High
Low
Poor
Unstructured
High
Low
Structured
High
Low
Favorable
for leader
Most
effective
leader
in the
situation
Unstructured
High
Low
Unfavorable
for leader
Taskmotivated
Taskmotivated
Taskmotivated
Relationshipmotivated
Relationshipmotivated
Relationshipmotivated
Relationshipmotivated
Taskmotivated
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Classic Contingency Models Of
Leadership (cont.)
Hersey
and Blanchard’s situational theory
 manager
should consider an employee’s psychological and
job maturity
maturity - level of the follower’s skills and technical
knowledge relative to the task performed
psychological maturity - follower’s self-confidence and selfrespect
job
 determines
the degree to which task performance or
maintenance behaviors are important
maintenance
behaviors are not important with followers of low
or high levels of maturity
performance behaviors important for followers with low
maturity
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.