MANAGEMENT Thieu Thi Anh Tuyet Marvella Mi Hao Stephanie Will Novita Elisa Chapter 17 “LEADERSHIP” LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. Who are Leaders and What is Leadership? • Define leaders and leadership • Explain why managers should be leader Early Leadership Theories • Discuss what research has shown about leadership traits. • Contrast the findings of the four behavioral leadership theories. • Explain the dual nature of a leader’s behavior. Contingency Theories of Leadership • Explain how Fiedler’s theory of leadership is a contingency model. • Contrast situational leadership and the leader participation model. • Discuss how path-goal theory explains leadership. L E A R N I N G O U T L I N E (Cont’d) Follow this Learning Outline as you read and study this chapter. Cutting Edge Approaches to Leadership • Differentiate between transactional and transformational leaders. • Describe charismatic and visionary leadership. Leadership Issues in the Twenty-First Century • Tell the five sources of leader’s power. • Discuss the issues today’s leaders face. • Explain why leadership is sometimes irrelevant. Who are Leaders and What is Leadership? Leaders: Someone who can influence others and who has managerial authority. Leadership: the process of influencing a group to achieve goals. EARLY THEORY Early Leadership Theories Trait Theories (1920s–1930s) Research in the 1920s and 1930s, focused on leader traits with the intent to isolate one or more traits that leaders possessed, but that nonleaders did not. Seven traits associated with effective leadership: Drive, the desire to lead, honesty and integrity, selfconfidence, intelligence, job-relevant knowledge, and extraversion. Management 6 Exhibit 17-1 Seven Traits Associated with Leadership • Drive:leader exhibit a high effort level. • Desire to lead: Leaders have a strong desire to influence and lead others. • Honesty and integrity • Self-confidence: Followers look to leaders for an absence of self doubt. • Intelligence: Large information, to create visions, solve problems. • Job-relevant knowledge • Extraversion: Leaders are energetic, lively people. Management 7 Early Leadership Theories (Cont’d) Behavioral Theory University of Iowa Studies (Kurt Lewin) – Identified three leadership styles: • Autocratic style: centralized authority, low participation • Democratic style: involvement, high participation, feedback • Laissez-faire style: hands-off management – Research findings: mixed results • No specific style was consistently better for producing better performance • Employees were more satisfied under a democratic leader than an autocratic leader Thieu thi anh tuyet 8 Early Leadership Theories (Cont’d) Behavioral Theory (Cont’d) Ohio State Studies – Identified two dimensions of leader behaviour • Initiating structure: the role of the leader in defining his or her role and the roles of group members • Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings – Research findings: mixed results • High-high leaders generally, but not always, achieved high group task performance and satisfaction • Evidence indicated that situational factors appeared to strongly influence leadership effectiveness Management 9 Early Leadership Theories (Cont’d) Behavioral Theory (Cont’d) University of Michigan Studies – Identified two dimensions of leader behaviour • Employee oriented: emphasizing personal relationships • Production oriented: emphasizing task accomplishment – Research findings: • Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction Management 10 Early Leadership Theories (Cont’d) Behavioral Theory (Cont’d) Managerial Grid – Appraises leadership styles using two dimensions: • Concern for people • Concern for production Management 11 Exhibit 17.2 The Managerial Grid Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved. Management 12 Contingency Theories of Leadership Contingency Theories The Fiedler Model Hersey and Blanchard’s Situational Leadership Theory (SLT) Leader Participation Model Path-Goal Model Contingency Theories (Cont’d) The Fiedler Model The effective group performance depends upon the proper match between the leader’s style interacting with the followers. To define leadership styles and different types of situations and then to identify the appropriate combinations of style and situation. Use The Least-Preferred Co-worker (LPC) Questionnaire A questionnaire that measured whether a leader as task-oriented or relationship-oriented. Contingency Theories (Cont’d) The Fiedler Model (Cont’d) Three Contigency Dimensions – Leader-member relations • rated as either good or poor. – Task structure • rated as either high or low. – Position power • rated as either strong or weak. Exhibit 17.3 - Fiedler Model Contingency Theories (Cont’d) Hersey and Blanchard’s SLT A leadership contingency theory that focuses on the follower’s readiness. Four Leadership Styles – Telling (high task-low relationship) – Selling (high task-high relationship) – Participating (low task-high relationship) – Delegating (low task-low relationship) Contingency Theories (Cont’d) Hersey and Blanchard’s SLT (Cont’d) Four Stages of Follower Readiness – R1: unable and unwilling. – R2: unable but willing. – R3: able but unwilling. – R4: able and willing. Exhibit 17.4 - Hersey and Blanchard’s SLT Model Contingency Theories (Cont’d) Leader Participant Model A leadership contingency model that related leadership behavior and participation in decision making. Developed by Victor Vroom and Phillip Yetton Leadership Style in Vroom Leader Participant Model – Decide: decision maker. – Consult individually: ask suggestions from group members individually. – Consult group: ask suggestions from group members in a meeting. – Facilitate: Facilitator, defines problems and boundaries. – Delegate: Group makes the decision within prescribed limits. Contingency Theories (Cont’d) Path Goal Model Leader must assist the followers in attaining their goals and to provide the direction needed to ensure that their goals are compatible with the objectives. House’s Leadership Behaviors: – Directives Leader – Supportive Leader – Participated Leader – Achievement-oriented Leader Exhibit 17.5 – Path Goal Model Contemporary Views on Leadership Transformational-Transactional Leadership What are transactional leaders? • Leader who guide and motivate their followers in the direction of set goals by clarifying role and task requirement. What is a transformational leader? Leaders who inspires followers to transcend their own self-interests for the good of the organization, and who is capable of having an important effect on his followers. Distinguish transactional and transformational leadership. Transformational leadership is built on top of transactional leadership. Charismatic-Visionary Leadership • What is charismatic-leadership? • The skills do charismatic leader’s exhibit? – Enthusiastic – Self Confidence – Action influence people to behave in certain ways • What is visionary leadership? • What skills do visionary leader’s exhibit? – – – Ability to explain the vision to others. Ability to express the vision not just verbally but through behavior. Ability to extend to apply the vision to different leadership contexts. Team Leadership What is team leadership? How to become an effective team leader? Have the patience to share information Being able to trust other to give up authority Understanding when to intervene Have mastered the difficulties balancing act of knowing when to leave and involve their team Some priorities entail four specific leadership roles Liaisons with external constituencies Troubleshooters Conflict managers Coaches LEADERSHIP IN CENTURY ST 21 LEADERSHIP ISSUE IN 21ST CENTURY Managing Power – Legitimate power • The power a leader has as a result of his or her position. – Coercive power • The power a leader has to punish or control. – Reward power • The power to give positive benefits or rewards. – Expert power • The influence a leader can exert as a result of his or her expertise, skills, or knowledge. – Referent power • The power of a leader that arise because of a person’s desirable resources or admired personal traits. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d) Developing Credibility and Trust – Credibility • The assessment of a leader’s honesty, competence, and ability to inspire by his or her followers – Trust • The belief of followers and others in the integrity, character, and ability of a leader. • Dimensions of trust: integrity, competence, consistency, loyalty, and openness. • Trust is related to increases in job performance, organizational citizenship behaviors, job satisfaction, and organization commitment. Exhibit 17-6 Suggestion for Building Trust Practice openness. Be fair. Speak your feelings. Tell the truth. Show consistency. Fulfill your promises. Maintain confidences. Demonstrate competence. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d) Providing Ethical Leadership – Ethics are part of leadership when leaders attempt to: • Foster moral virtue through changes in attitudes and behaviors. • Use their charisma in socially constructive ways. • Promote ethical behavior by exhibiting their personal traits of honesty and integrity. – Moral leadership: • Involves addressing the means that a leader uses to achieve goals as well as the moral content of those goals. LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d) Providing Online Leadership • Focusing on managing virtual teams using the development of technology. • There are also challenges in providing online leadership : communication, performance management and trust. –Challenges in Providing Online Leadership • Communication – leader may need to learn new communication skills because the communication by using technology is different from using face to face communication • Managing Performance – It can be done by defining, facilitating and encouraging it. – Define : direct the employees – Facilitate : reducing or eliminating obstacles to successful performance and providing adequate resources to get the job done – Encouraging : providing sufficient rewards that virtual employees really value –Challenges in Providing Online Leadership • Trust issue – Whether the system is being used to monitor and evaluate employees – It is more important to create a culture where trust among all participants is expected and required – The five dimensions of trust is integrity, competence, consistency, loyalty and openness LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d) Empowerment – Involves increasing the decisionmaking discretion of workers such that teams can make key operating decisions in develop budgets, scheduling workloads, controlling inventories, and solving quality problems. – Why empower employees? • Quicker responses problems and faster decisions. • Address the problem of increased spans of control in relieving managers to work on other problems. Stephen R. Covey, Principle-centered Leadership LEADERSHIP ISSUES IN 21st CENTURY (con’t) Cross-Cultural Leadership • Leadership style based on national culture • The universal appeal of these transformational leader characteristics is due to pressure toward common technologies and management practices as a result of global competitiveness and multinational influences LEADERSHIP ISSUES IN 21st CENTURY (con’t) • Gender Differences and Leadership “Do males and females lead differently? ” accurately characterized as a purely academic issue interesting but not relevant. A number of studies focusing on gender and leadership style have been conducted in recent years. LEADERSHIP ISSUES IN 21st CENTURY (con’t) • Gender Differences in Leadership Styles – Women tend to adopt a more democratic or participative style and a less autocratic or directive style than men do – Women are more like encourage participation, share power ad information and attempt to enhance followers self worth – Men are more likely to use a directive command and control styles – Men rely on the formal authority of their position for their influence base – Men use transactional leadership, handing out rewards for good work and punishment for bad Exhibit 17-11 Where Female Managers Do Better: A Scorecard None of the five studies set out to find gender differences. They stumbled on them while compiling and analyzing performance evaluations. Skill (Each check mark denotes which group scored higher on the respective studies) MEN WOMEN Motivating Others Fostering Communication * Producing High-Quality Work Strategic Planning * Listening to Others Analyzing Issues * In one study, women’s and men’s scores in these categories were statistically even. Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, Personnel Decisions International Inc., Advanced Teamware Inc. Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75. * LEADERSHIP ISSUES IN 21st CENTURY (con’t) • The Demise of Celebrity Leadership Business leader seem to be losing their luster. Demise have two factors : • That obviously has contributed to this shift of opinion is the publicity from ongoing ethical ad financial scandals at both for profit and nonprofit organizations around the world. • The controversy surrounding executive pay. Example of a CEO Mr. Sudhamek Agoeng Wospodo Soejoto, CEO of Garuda Food Company Some suggestions CEO need to back to the basics of what it means to be a Leader • Give people a reason to come to work. • Be loyal to the organization’s people • Spend time with people who do the real work for the organization. • Be more open and more candid about what business practices are acceptable and proper and how the unacceptable ones should be fixed. LEADERSHIP ISSUES IN 21st CENTURY (con’t) • Substitutes for Leadership Some situations, any behaviors a leader exhibits are irrelevant. Becoming a Manager As you interact with various organizations, note the different styles used by the leaders in those organizations. Thinks of people that you would consider effective leaders and try to determine why they’re effective. If you have the opportunity, take the leadership development course. Practice building trust in relationship that you have with others. Read the books on great leaders (not just business leaders) and on leadership development topics Terms to Know • • • • • • • • • Leader Leadership Traits Theory Behavioral Theory Managerial Grid Fiedler Model LPC Questionnaire SLT Leader Participant Model • Path-Goal Model • Transformational leadership • Transactional leadership • • • • • • • • • • • • • • • Visionary leader • Charismatic leadership • Team leadership • Legitimate Power Coercive Power • Reward Power Expert Power Referent Power Credibility Trust Ethical leadership Moral leadership Online Leadership Abbreviation Emoticons Jargon Gender Differences and Leadership The Demise of Celebrity Leadership Substitutes for a Leadership Starring Teacher T. Manivasugen Class Captain Hafid Pradipta Speakers Thieu Thi Anh Tuyet Marvella Mi Hao Stephanie Andriani Stephanie Will Novita Elisa Class Management Class 1