Leadership Chapter 16 McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. © 2008The McGraw-Hill Companies, Inc. All rights reserved. Ch. 16 Learning Objectives 1. Define the term leadership and explain the difference between leading and managing. 2. Review trait theory research and the takeaways from this theoretical perspective. 3. Explain behavioral styles theory and its takeaways. 4. Explain, according to Fiedler’s contingency model, how leadership style interacts with situational control, and discuss the takeaways from this model. 5. Discuss House’s revised path-goal theory and its practical takeaways. 16-2 Ch. 16 Learning Objectives 6. Describe the difference between laissez-faire, transactional, and transformational leadership. 7. Discuss how transformational leadership transforms followers and work groups. 8. Explain the leader-member exchange model of leadership. 9. Review the concept of shared leadership and the principles of servant-leadership. 10. Describe the follower’s role in the leadership process. 16-3 A Leader Is Someone Who… …influences a group of individuals to achieve a common goal. Key aspects of leadership include… • Creating and communicating a vision • Influencing others through use of power • Motivating task behavior in pursuit of shared objectives • Establishing and maintaining group culture • Empowering others • Clarifying roles and niche in marketplace • Making tough decisions with limited information 16-4 Approaches to Studying Leadership Trait approaches Behavioral approaches Contingency approaches Transformational Approaches Emerging Approaches 16-5 Leaders & Managers 16-6 Leaders and Managers Leaders • • • • Inspire & Motivate Manage People Are Decisive Create a Vision Managers • • • • Are Accountable Execute Manage Resources Plan, organize, direct, control Managers who are also leaders 16-7 Trait Approach to Leadership “Great Man” approach • Attempt to identify relatively stable, enduring dispositional attributes that leaders possess Implicit Leadership Theory • Beliefs about how leaders should behave and should do for their followers Emotional Intelligence • Ability to manage oneself and one’s relationships in mature and constructive ways. 16-8 Key Positive Leadership Traits Intelligence Self-confidence Determination Honesty/Integrity Sociability Extroversion Conscientiousness Problem solving skills 16-9 Ineffective Leadership Traits Incompetent Rigid Intemperate Callous Corrupt Insular Evil 16-10 Practical Implication: Trait Theories Personal Implications • Predispositions: Personality tests and other trait assessments will reveal predispositions • Development Plans: However, targeted plans aimed at adapting and learning new behaviors can be effective ways to develop leadership talent Organizational Implications: • Use valid measures of job-related traits to select employees • Create management development programs 16-11 Behavioral Styles Theory Ohio State Studies Low Consideration Behavior High Consideration Behavior Low Initiating Structure Behavior High Initiating Structure Behavior 16-12 Four Leadership Styles Showing Consideration High Low Seeks input from others before taking action; gets consensus Emphasizes reaching the goal while welcoming suggestions and encouraging consensus Passive, noncommittal, low impact on followers Takes charge, structures employees tasks Low High Initiating Structure 16-13 Drucker’s Leadership Effectiveness Tips 1. Determine what needs to be done. 2. Determine the right thing to do for the welfare of the entire enterprise 3. Develop action plans 4. Take responsibility for decisions. 5. Take responsibility for communicating action plans 6. Focus on opportunities rather than problems. 7. Run productive meetings 8. Think and say “we” rather than “I”. 9. Listen first, speak last. 16-14 Test Your Knowledge Natalia tends to ensure her team is on board with any decision she makes. The productivity of her team is below the level of other teams in her business unit. Based on the Ohio State leadership studies Natalia is probably: a. b. c. d. High on consideration, high on initiating structure High on consideration, low on initiating structure Low on consideration, low on initiating structure Low on consideration, high on initiating structure 16-15 Behavioral Styles: Key Takeaways Challenged assumption that leaders are born, not made Defined “leadership” in actual behaviors There is no one best style of leadership – depends on the situation An “effective” leader behavior can be misused and have negative consequences for employees 16-16 Contingency Approaches to Leadership Effective traits and behaviors depend on the situation Fiedler’s Contingency Theory • Premise: There must be a match between the leader’s style and the demands of the situation for the leader to be effective. • Assumption: Leadership style does not change. If a mismatch occurs between style and the situation, change the situation. 16-17 Fiedler’s Contingency Theory Situation depends on three variables: 1: Leader-Member Relations 2: Task Structure 3: Position Power 16-18 Your Experience Have you been in a situation where, as a leader, one of these situational factors were not in your favor? A=Yes, B=No If Yes, was it more practical to _________ in response to the situation a. change the situation b. change your behaviors Do you agree that leaders have one dominant style? A=Yes, B=No 16-19 Representation of Fiedler’s Contingency Model Situational Control High Control Situations Moderate Control Situations Low Control Situations Leader-member relations Good Good Good Good Poor Poor Poor Poor Task Structure High High Low Low High High Low Low Position Power Strong Weak Strong Weak Strong Weak Strong Weak Situation I II III IV V VI VII VIII Optimal Leadership Style Task-motivated Leadership RelationshipMotivated Leadership TaskMotivated Leadership 16-20 Fiedler’s Model: Key Takeaways Leadership effectiveness is comprised of: • Traits, • Behaviors, and • Situational factors Organization implications • Give some consideration to the situational context when placing people in leadership roles • Poor leadership in one context may not mean poor leadership in a different situation • Organization’s should provide training/mentoring to increase leaders’ adaptability 16-21 House’s Revised Path-Goal Theory Employee Characteristics Locus of control Leader Behaviors Task ability Need for achievement Path-goal clarifying Experience Achievement oriented Need for clarity Leadership Effectiveness Work facilitation Employee motivation Supportive Employee satisfaction Interaction facilitation Employee performance Group oriented- Leader acceptance decision making Representation and networking Value based Environmental Factors Work-unit performance Task structure Work group dynamics 16-22 Path Goal: Key Takeaways Effective leaders possess and use more than one style of leadership •Managers should try new behaviors based on situational demands Leaders should clarify paths to goal accomplishment and remove obstacles Employee and environmental characteristics impact the type of leadership style that will be most effective 16-23 Applying Situational Theories Identify important outcomes • What are you trying to achieve? Identify relevant leadership types/behaviors. • What types of behaviors may be appropriate for this situation? Select one or two best ones. Identify situational conditions. • What are the practical considerations that affect your leadership approach? 16-24 Applying Situational Theories Match leadership to the conditions at hand. • Do your best to determine the leadership behavior to use given the situation. Determine how to make the match. • Change the leader or change the leader’s style? 16-25 Transactional Vs. Transformational Leadership Transactional Leadership focuses on clarifying employees’ roles and providing rewards contingent on performance Appeals to what followers want (rewards) Transformational transforms employees to pursue organizational goals over self-interest Appeals to followers’ values, beliefs, selfconcept 16-26 Transformational Model of Leadership Ind. & Org. characteristics Leader behavior Traits Inspirational motivation Life Experiences Organizational Culture Idealized influence Individualized consideration Intellectual stimulation Effects on followers and work groups Outcomes Increased intrinsic motivation, achievement orientation, and goal pursuit Personal commitment to leader and vision Increased identification with the leader Self-sacrificial behavior Increased cohesion among workgroup members Organizational commitment 16-27 The Leader-Member Exchange (LMX Model) Assumption: Leaders do not treat all employees in the same way – it is based on their one-on-one relationship. • In-group exchange: a partnership characterized by mutual trust, respect and liking • Out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking 16-28 Shared Leadership … a dynamic interactive influence process among individuals in groups for which the objective is to lead one another to the achievement of group or organizational goals or both. 16-29 Shared Leadership 16-30 Servant Leadership Servant Leadership focuses on increased service to others rather than to oneself 16-31 Servant Leadership Characteristics Servant-Leadership Characteristics Description 1) Listening Focus on listening to identify and clarify the needs and desires of the group 2) Empathy 3) Healing Try to empathize with others’ feelings and emotions Strive to make themselves and others whole in the face of failure or suffering 4) Awareness 5) Persuasion Very self-aware of their strengths and limitations Rely on persuasion when making decisions and trying to influence others 16-32 Servant Leadership Characteristics Servant-Leadership Characteristics Description 6) Conceptualization Seek the appropriate balance between a short-term, day-to-day focus, and a long-term, conceptual orientation 7) Foresight Have ability to foresee future outcomes associated with a current course of action or situation 8) Stewardship Assume they are stewards of the people and resources they manage 16-33 Servant Leadership Characteristics Servant-Leadership Characteristics 9) 10) Commitment to the growth of people Building community Description Committed to people beyond their immediate work role Strive to create a sense of community both within and outside the work organization 16-34 Followers Significance • Emphasize the meaningfulness of the work one does Community • Provide a sense of unity and encourage people to treat others with respect and dignity Excitement • Promote feelings of engagement and energy 16-35 Test Your Knowledge Which of the following is true? a. A leader is responsible for the quality of the relationships with his/her subordinates. b. Followers who protect their leaders from bad news are appreciated. c. Followers should focus on doing a good job and not try to learn about their manager’s style, strengths or weaknesses. d. Followers should build on mutual strengths and adjust to accommodate the leader’s style, goals, expectations and weaknesses. 16-36