Leadership Chapter 15 MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 1 learning objectives 1. Discuss leadership traits, skills, and behaviors 2. Differentiate between management and leadership 3. Describe the five sources of power leaders may possess 4. Differentiate between positive and negative motivation 5. Describe the three decision-making styles used Chapter 15 by leaders Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 learning objectives (continued) 6. Explain the two primary approaches leaders can take: task centered and people centered 7. Describe the three theories of situational leadership Chapter 15 8. Discuss the three challenges facing leaders Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 Leading Establishing values, culture, and climate Defining a mission Identifying core competencies Scanning environments Sensing the need for change Creating a vision for the future Enlisting cooperation and support for the vision Keeping people and processes focused on satisfying various customers Chapter 15 Unleashing the full potential from human resources Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 Those Who Practice Leadership… Guide Direct Counsel Coach Chapter 15 Persuade Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Inspire others 5 Leadership and Influence Leadership Chapter 15 Influence The process of influencing individuals and groups to set and achieve goals The power to sway people to one’s will or views Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 Leadership Variables The leader Those being led Chapter 15 The circumstances and situations they are facing Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 Leadership Traits Chapter 15 1 Traits Skills Adaptable Alert to social environment Ambitious & achievement-oriented Assertive Cooperative Decisive Dependable Dominant Energetic Persistent Self-confident Tolerant of stress Willing to assume responsibility Cleverness (intelligence) Conceptual ability Creativity Diplomacy and tact Fluency in speaking Knowledge about the group task Organizational ability Persuasiveness Social ability Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 Leadership Behaviors 1 Yukl’s Leadership Behaviors Performance emphasis Consideration Inspiration Praise-recognition Structuring reward contingencies 6. Decision participation 7. Autonomy-delegation 8. Role clarification 9. Goal setting 10. Training-coaching 11. Information dissemination Chapter 15 1. 2. 3. 4. 5. 12. 13. 14. 15. 16. 17. 18. 19. Problem solving Planning Coordinating Work facilitation Representation Interaction facilitation Conflict management Criticism-discipline Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 2 Management versus Leadership People Who Have Both Leadership Ability and Management Ability Chapter 15 Leadership Ability Management Ability People Who Have Leadership Ability but Are Not Managers Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved People Who Have Management Ability but Are Not Leaders 10 Chapter 15 2 Management versus Leadership Management Leadership Planning and budgeting Establishing direction Organizing and staffing Aligning people Controlling and problem solving Motivating and inspiring Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 3 The Five Sources of Power Legitimate Chapter 15 Reward Coercive Expert Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Referent 12 3 The Five Sources of Power Legitimate Power – derives from their positions in their organizations Coercive Power – result of the exercise of legitimate power Reward Power – the right to promise or grant rewards, such as raises and promotions, is often the result of exercising legitimate power Expert Power – a person’s abilities, skills, knowledge, and experience can exert influence when others value them Referent Power – related to the kind of personality Chapter 15 or personal attractiveness Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 4 Motivation Continuum Opportunities for Advancement Responsibility Positive Motivation Recognition Financial Rewards Praise Status Threats Negative Motivation Reprimands Financial Penalties Chapter 15 Suspension Termination Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 5 Decision-Making Styles Autocratic Style Participative Style Free-Rein Style Chapter 15 Which style a manager chooses should relate to the situation encountered. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 5 Leadership Styles and the Distribution of Decision-Making Authority Manager’s Exercise of Authority Subordinates’ Share of Decision-Making Authority Autocratic Style Chapter 15 Manager makes decision, announces it, and seeks feedback Participative Style Manager makes decision with input from subordinates Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Free-Rein Style Subordinate makes decision subject to limits set by boss 16 5 Autocratic Style Managers must: Know what needs to be done Possess expert power Face issues that they are best equipped to solve Create solutions in which implementation does not depend on others Chapter 15 Desire to communicate through orders and instructions Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 Participative Style 5 Managers: Share decision-making authority with subordinates Involves others and lets them bring their viewpoints, talents, and experiences to bear on an issue Chapter 15 Use to resolve issues that affect more than just the manager Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 Free-Rein Style 5 Managers: Rely heavily on delegation of authority Set limits and remain available for consultation Chapter 15 Hold participants accountable for their actions Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 6 Emphasis of Task Orientation Technology Plans Programs Goals Chapter 15 Methods Deadlines Getting the work out Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 6 Emphasis of People Orientation Chapter 15 Teamwork Relationships Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Mutual Trust 21 Chapter 15 6 The Leadership Grid® Source: This image is an adaptation of The Leadership Grid ® figure as it appears in The Power to Change, Rachel McKee and Bruce Carlson (Austin: Grid International, Inc.), p. 16. Copyright © 1999 by Grid International, Inc. Reproduced by permission of the owners. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 22 7 Theories of Situational Leadership Contingency Model Chapter 15 Path–Goal Theory Life-Cycle Theory Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 23 Chapter 15 7 Fielder’s Contingency Model Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 24 7 House & Mitchell’s Path–Goal Theory Leadership style is effective on the basis of how successfully leaders support their subordinates’ perceptions of: Chapter 15 Goals that need to be achieved Rewards for successful performance Behaviors that lead to successful performance Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 25 7 House & Mitchell’s Path–Goal Theory Leaders can influence subordinates’ motivation by: 1. Teaching employees competencies needed 2. Tailoring rewards to meet employees’ needs Chapter 15 3. Acting to support subordinates’ efforts Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 26 7 Assumptions of Path–Goal Theory 1. A leader’s behavior is acceptable and satisfying to subordinates to the extent that they view it as either an immediate source of satisfaction or as an instrument to some future satisfaction. Chapter 15 2. A leader’s behavior will increase subordinates’ efforts if it links satisfaction of their needs to effective performance and supports their efforts to achieve goals. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 27 7 Path–Goal Theory Leadership Behavior Instrumental behavior (task-oriented) Supportive behavior (employee-oriented) Participative behavior (employee-oriented) Chapter 15 Achievement-oriented behavior (employee-oriented) Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 28 7 Path–Goal Theory Situational Factors Personal characteristics of subordinates Chapter 15 Work environment Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 29 7 Path–Goal Theory Situational Factors Personal Characteristics of Subordinates Abilities Personal Needs and Motivations Self-Confidence Chapter 15 Perception of Leaders Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 30 7 Path–Goal Theory Situational Factors Work Environment Culture and Subculture Management Philosophy Chapter 15 Policies and Rules Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Exercise of Power Structure of Tasks 31 7 Hersey & Blanchard’s Life-Cycle Theory Chapter 15 Life-Cycle Theory A view of management that asserts that a leader’s behavior toward a subordinate should relate to the subordinate’s maturity level. The focus on tasks and relationships should vary as the subordinate matures. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 32 7 Hersey & Blanchard’s Life-Cycle Theory Autocratic Participative Chapter 15 New Employees Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Free-Rein Experienced Employees 33 8 Leadership Challenges Leadership must be exerted throughout an organization Leadership must respond rapidly Leadership must make difficult Chapter 15 decisions Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 34