MANAGEMENT RICHARD L. DAFT Leadership CHAPTER 16 chapter14 • • • • • • • • • • Learning Outcomes Define leadership and explain its importance for organizations. Describe how leadership is changing in today’s organizations. Identify personal characteristics associated with effective leaders. Define task-oriented behavior and people-oriented behavior and explain how these categories are used to evaluate and adapt leadership style. Describe Hershey and Blanchard's situational theory and its application to subordinate participation. Discuss how leadership fits the organizational situation and how organizational characteristics can substitute for leadership behaviors. Describe transformational leadership and when it should be used. Explain how followership is related to effective leadership. Identify sources of leader power and the tactics leaders use to influence others. Explain servant leadership and moral leadership and their importance in contemporary organizations. 3 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 What’s Your Personal Style? • Some of the most attitudes and behaviors in an organization are those of its leaders • There are many variations to leadership • Ideas about leadership change over time • Leadership depends on organization and situation • Leadership is one of the most widely researched and discussed topics Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 4 chapter14 The Nature of Leadership • An organization is only as good as its leadership • There are three key variables to leadership: 1. People 2. Influence 3. Goals 5 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Contemporary Leadership Leadership evolves with time… Level 5 Leadership – Defined in book Good to Great – Complete lack of ego – Focus on organization & results Interactive Leadership – Minimizing personal ambition and developing others – Favors consensual and collaborative processes – Grew from observation of male vs. female leaders 6 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 The Level 5 Leadership Hierarchy 7 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. From Management to Leadership chapter14 Good management is essential Leadership is required Distinct qualities Leadership cannot replace management, it should be in addition to management 8 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Personal Characteristics of Leaders 9 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. Behavioral Approaches to Leadership chapter14 • Ohio State Studies – Consideration: people-oriented behavior – Initiating structure: task-behavior that directs work activities • Michigan Studies – Employee-centered leaders: focused on subordinates human needs – Job-centered leaders: meeting schedules, keeping costs low and achieving productivity • The Leadership Grid – Built on both Ohio State and Michigan Studies – Two-dimensional grid w/ five major management styles 10 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 The Leadership Grid 11 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Contingency Approaches Hersey and Blanchard’s Situational Theory – Characteristics of followers and determining appropriate leadership behavior – Adopt one of four leadership styles Fiedler’s Contingency Theory – Apply leader’s style to organizational situation – Is situation favorable on unfavorable to the leader’s style 12 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Situational Theory: Hersey & Blanchard 13 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 How Leader Style Fits the Situation 14 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. Substitutes and Neutralizers chapter14 for Leadership 15 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Charismatic Leadership • Leadership can inspire and motivate people • Charismatic Leaders Lofty visions Ability to understand and empathize Empowering and trusting subordinates • Charismatic leaders are less predictable and create an environment of change 16 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Transformational vs. Transactional Leadership • Transformational leaders drive innovation and change – Recognize needs of followers – Inspire others to believe in themselves • Different than transactional leadership – Initiate structure, provide rewards – Excel in management functions • Transformational leaders have positive impact on followers Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 17 chapter14 Followership Leaders can develop understanding of followers Good followers have leadership traits Effective followers are independent, critical thinkers 18 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. chapter14 Power • Position Power – Legitimate Power: formal position – Reward Power: authority to reward others Power and influence are not the same. – Coercive Power: authority to punish or recommend • Personal Power – Expert Power: knowledge and skills – Referent Power: personal characteristics • Other Source of Power – Personal Effort: initiative – Network of Relationships: cultivated people resources – Information: access to information 19 Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. Interpersonal Influence Tactics chapter14 Use rational persuasion Make people like you Rely on the rule of reciprocity Develop allies Ask for what you want Make use of higher authority Reward the behaviors you want Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 20 chapter14 Leadership as Servant Servant Servant Leadership Leadership – Leaders who transcend self-interest to serve others in the organization – Servant leaders give away their power, information, ideas, recognition Moral Moral Leadership Leadership – Business is about values, not just economic performance – Focus on right from wrong and choosing to do the right thing Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 21