Part 4 Leadership Challenges in the 21st Century

Chapter

12
Leadership: Leading in a Dynamic Environment

PowerPoint Presentation by Charlie Cook The University of West Alabama 2007 Thomson/South-Western. All rights reserved.

LEARNING OBJECTIVES
When you have finished studying this chapter, you should be able to:

Managers versus leaders Leadership perspectives Team leadership

2007 Thomson/South-Western. All rights reserved.

122

Managers Versus Leaders

Not all leaders are managers, nor are all managers leaders. Managers
Persons whose influence on others is limited to the

appointed managerial authority of their positions to reward and punish.

Leaders
Persons with managerial and personal power who

can influence others to perform actions beyond those that could be dictated by those persons formal (position) authority alone.
2007 Thomson/South-Western. All rights reserved. 123

Leadership Significance
Leadership is:
A social influence process. A responsibility and a process; its not a position, title,

or privilege.
An observable, understandable, learnable set of skills

and practices available to everyone, anywhere in the organization.

The indirect ability to influence people by inspiring

them to pursue goals for the benefit of the organization.

2007 Thomson/South-Western. All rights reserved.

124

Leadership and Vision

Leadership involves:
Creating a vision of the future. Devising strategy for achieve that vision. Communicating the vision so that everyone

understands and believes in it.

2007 Thomson/South-Western. All rights reserved.

125

Figure 12.1

Three Categories of Leader Approaches

2007 Thomson/South-Western. All rights reserved.

126

1. Leader-Centered Approaches
Leadership Traits and Skills Focus
The assumption that some people are born with

certain physical characteristics, aspects of personality, and aptitudes that make them successful leaders. Physical characteristics: height and appearance Personality: self-esteem, dominance and emotional stability Aptitudes: general intelligence, verbal fluency and creativity

2007 Thomson/South-Western. All rights reserved.

127

Traits of Successful Leaders

Drive
Achievement, sense of responsibility, ambition,

energy, tenacity and initiative.

Motivation
Especially power.

Honesty and integrity Self confidence

Persuasive, diplomatic and socially skilled.

Conceptual ability Business knowledge

2007 Thomson/South-Western. All rights reserved. 128

Table 12.1

The 25 Most Influential Leaders of Our Times

To celebrate the 25th anniversary of the Nightly Business Report (NBR), Wharton and NBR worked to identify the 25 most influential business leaders of the past 25 years. Their goal was to find business leaders who created new and profitable ideas; affected political, civic or social change through achievement in the business/economic world; created new business opportunities or more fully exploited existing ones; caused or influenced dramatic change in a company or industry; and/or inspired and transformed others.
1. Mary Kay Ash, founder of Mary Kay Cosmetics 2. Jeff Bezos, CEO of Amazon.com 3. John Bogle, founder of The Vanguard Group 4. Richard Branson, CEO of Virgin Group 5. Warren Buffett, CEO of Berkshire Hathaway 6. James Burke, former CEO of Johnson & Johnson 7. Michael Dell, CEO of Dell Computers 8. Peter Drucker, educator and author 9. Bill Gates, chair of Microsoft 10. William George, former CEO of Medtronics 14. Lee Iacocca, former CEO of Chrysler 15. Steven Jobs, CEO of Apple Computers 16. Herb Kelleher, CEO of Southwest Airlines 17. Peter Lynch, former manager of Fidelitys Magellan Fund

18. Charles Schwab, founder of Charles Schwab Inc.

19. Frederick Smith, CEO of Federal Express 20. George Soros, founder and chair of Open Society Institute 21. Ted Turner, founder of CNN 22. Sam Walton, founder of Wal-Mart 23. Jack Welch, former CEO of General Electric 24. Oprah Winfrey, chair of the Harpo group of companies 25. Mohammed Yunus, founder of Grameen Bank.

11. Louis Gerstner, former CEO of IBM

12. Alan Greenspan, chair, U.S. Federal Reserve 13. Andy Grove, former chair of Intel

2007 Thomson/South-Western. All rights reserved.

129

Leader-Centered Approaches (contd)

Leadership Behavior Focus
Examines what effective leaders do rather than what

effective leaders are. Defines a leaders effectiveness based on two orientations: Task orientation
Setting performance goals, planning and scheduling work, coordinating activities, giving directions, setting standards, providing resources, and supervising performance.
Relations

orientation

Behavior that shows empathy for concerns and feelings, supportive of needs, showing trust, and similar attributes.

2007 Thomson/South-Western. All rights reserved.

1210

Leadership Behavior Conclusions

Effective leaders use a range of behaviors. Leadership behaviors can be learned. Effective leaders have the ability to change and adapt to organizational settings in which they manage. It is still not obvious which behaviors are most effective because numerous other factors can influence performance and success.

2007 Thomson/South-Western. All rights reserved.

1211

Leader-Centered Approaches (contd)

Leadership Power Focus
Power: the ability to use human, informational, or

material resources to get something doneto get results. Authority: the officially (organizationally) sanctioned right to get something done.

2007 Thomson/South-Western. All rights reserved.

1212

Types of Position Power

1. Legitimate power
Stems from formal authority.

2. Coercive power
The power to discipline, punish and withhold rewards.

3. Reward power
Control over tangible benefits.

4. Information power
Control over information.

2007 Thomson/South-Western. All rights reserved.

1213

Types of Personal Power

5. Expert power
The power influence another person because of

expert knowledge and competence.

6. Referent power
The ability to influence others

based on personal liking, charisma and reputation.

2007 Thomson/South-Western. All rights reserved.

1214

Power Orientation
Personalized Power Orientation
Associated with a strong need for esteem and status;

power is often used impulsively.

Socialized Power Orientation

The use of power for the benefit of others to make

subordinates feel strong and responsible.

2007 Thomson/South-Western. All rights reserved.

1215

2. Follower-Centered Approaches
Self-leadership (Followership) Focus
A paradigm founded on creating an organization of

leaders who are ready to lead themselves. Requires each employee to be accountable for his or her own behavior. Employees feel valued by the company and are loyal.

2007 Thomson/South-Western. All rights reserved.

1216

Figure 12.2

Essential Strategies for Self-Leadership

2007 Thomson/South-Western. All rights reserved.

1217

Characteristics of Self-Leaders
The capacity to motivate themselves and stay focused on tasks.

Integrity that demands both loyalty to the organization and the willingness to act according to beliefs.
Understanding of the organization and their contributions to it. Willingness to take the initiative to deal with problems. Versatility, skillfulness and flexibility to adapt to a changing environment. Responsibility for their careers, actions and development.
2007 Thomson/South-Western. All rights reserved. 1218

Leadership Substitutes
Variables such as individual, task, and organizational characteristics that tend to outweigh the leaders ability to affect subordinate satisfaction and performance. Also known as neutralizers:
A condition that counteracts leader behavior and/or

prevents the leader from having an effect on a follower or a specific situation.

2007 Thomson/South-Western. All rights reserved.

1219

Figure 12.3

Leadership Substitutes

2007 Thomson/South-Western. All rights reserved.

1220

3. Interactive Approaches
Another method of examining leadership effectiveness is to look at how leaders interact with their followers. Interactive Approaches:
Situational leadership model
Empowerment Transformational leadership

2007 Thomson/South-Western. All rights reserved.

1221

Interactive Approaches (contd)

Situational Leadership Model
Examines the interaction between leadership

behavior, the situation, and the followers readiness.

Leadership

behavior: based on the concern for the task and the concern for the employee. To maximize employee performance, leadership behavior must use a style appropriate to employees development or readiness. the extent to which a subordinate possesses the ability and willingness to complete a specific task.
1222

Readiness:

2007 Thomson/South-Western. All rights reserved.

Interactive Approaches (contd)

Styles of Situational Leadership Behavior
Telling style: the leader provides specific instructions

and closely supervises performance.

Selling style: the leader explains decisions and

provides opportunities for clarification.

Participating style: the leader shares ideas and

maintains two-way communication to encourage and support the skills subordinates have developed.
Delegating style: the leader provides subordinates

with few task or relations behaviors.

2007 Thomson/South-Western. All rights reserved.

1223

Interactive Approaches (contd)

Empowerment
The interaction of the leader giving away or sharing

power with those who use it to become involved and committed to independent, high-quality performance.
Successful empowerment means that everyone has

been convinced that he or she makes a difference to the success of the organization.

2007 Thomson/South-Western. All rights reserved.

1224

Interactive Approaches (contd)

Transformational Leadership
Is a leaders ability to influence employees to achieve

more than was originally expected, or thought possible.

Generates feelings of trust, admiration, loyalty and

respect from followers through:

Idealized influence Inspirational motivation Intellectual stimulation Individualized considerations

2007 Thomson/South-Western. All rights reserved.

1225

Table 12.2

Primary Dimensions of Transformational Leadership Leaders Specific Behavior

Acts as mentor; is attentive to achievement and growth needs.

Dimension
Individualized consideration

Followers Behavior
Is motivated; feels valued.

Intellectual stimulation

Promotes innovation and creativity; reframes problems.

Is encouraged to be novel and try new approaches.

Inspirational motivation

Provides meaning and challenge through prosocial, collective action.

Is motivated by team spirit; enthusiastic; optimistic.

Idealized influence

Shares risks; is considerate of others over own needs; is ethical and moral.

Shows admiration; respect; trust.

2007 Thomson/South-Western. All rights reserved.

1226

Current Perspectives on Leadership

Emotional Intelligence (EI)
The capacity to effectively manage ourselves and our

relationships. Components of EI: Personal competence: the ability to understand your own feelings, emotions, and their impact and to understand your strengths and weaknesses (based on the concept of self-awareness). Social competence: the ability to understand what others are feeling (the concept of social awareness) and having the skills to work effectively with others (based on social skill).
2007 Thomson/South-Western. All rights reserved. 1227

Table 12.3

The Emotional Intelligence Competency Framework

Personal Competence
Self-management Self-control Trustworthiness Conscientiousness Adaptability Achievement orientation Initiative Self-awareness Emotional self-awareness Accurate self-assessment Self-confidence

Social Competence
Social awareness Empathy and insight Political awareness Service orientation Social skill Developing others Visionary leadership Influence Communication Change catalyst Conflict management Building bonds Teamwork and collaboration Synergy in teamwork
1228

Sources: D. Goleman, R. Boyatzis, and A. McKee, Primal Leadership: Realizing the Power of Emotional Intelligence (Boston: Harvard Business School Press, 2003); D. Goleman Leadership That Gets Results, Harvard Business Review (March/April 2000): 7890. 2007 Thomson/South-Western. All rights reserved.

Current Perspectives on Leadership (contd)

Gender and Leadership
Female leaders are more empathic, persuasive,

better listeners and more willing to consider others points of view. Male leaders show higher levels of resilience and thoroughness than women leaders. Both men and women executives believe that women have to be exceptional to succeed in business. Women leaders feel they must struggle harder than men to succeed. Women are more likely to use behaviors that are associated with transformational leadership.
2007 Thomson/South-Western. All rights reserved. 1229

Current Perspectives on Leadership (contd)

Leaders of the future will:
Be challenged to manage relationships with a

diversity of partners, stakeholders, and other businesses in the larger context of differing cultures. Need to align their leadership vision, core values, and everyday actions to produce desired results in all aspects of their lives. Promote leadership development and encourage workers to assume leadership roles.
Be innovative and creative, a continuous learner,

have values (especially integrity), and in charge of their own careers.

2007 Thomson/South-Western. All rights reserved. 1230

The Challenge of Team Leadership

Becoming an effective team leader requires:
Learning to share information. Developing the ability to trust others. Learning to give up authority. Knowing when to leave their teams alone and

when to intercede.

New roles that team leaders take on or to focus on:

Managing the teams external boundary
Facilitating the team process

2007 Thomson/South-Western. All rights reserved.

1231

Team Leader Roles

Exhibit 11.9
2007 Thomson/South-Western. All rights reserved. 1232

Five Dimensions of Trust

A positive expectation that another will not act opportunistically Integrity
Honesty, conscientiousness and truthfulness

Competence
Technical and interpersonal knowledge and skills

Consistency
Reliability, predictability, and good judgment

Loyalty
Willingness to protect and save face for a person

Openness
Willingness to share ideas and information freely

Source: Adapted and reproduced with permission of publisher from J. K. Butler Jr. and R. S. Cantrell, A Behavioral Decision Theory Approach to Modeling Dyadic Trust in Superiors and Subordinates. 2007 Thomson/South-Western. All rights reserved.

Exhibit 11.10
1233

Types Of Trust
Deterrence-based trust
Trust based on fear of reprisal/punishment if the trust is

violated Eg. New manager-employee relationship

Knowledge-based trust
Trust based on the behavioral predictability that comes from a

history of interaction Rely on information Eg. Manager-employee relationship

Identification-based trust
Trust based on an emotional

connection between the parties Eg. Happy marriage

2007 Thomson/South-Western. All rights reserved.

1234

Thank You

2007 Thomson/South-Western. All rights reserved.

1235