Topic 7

Understanding Leadership in a Dynamic Environment

Leadership

2001 South-Western Publishing

Transparency 13-2

Learning Objectives
Slide 1 of 2

1. Define leadership and explain its significance to an organization. 2. Differentiate between the different leadercentered approaches to leadership. 3. Describe the various types of power leaders use. 4. Explain what is meant by self-leadership and why it is important to the organization.
2001 South-Western Publishing Transparency 13-3

Learning Objectives
Slide 2 of 2

5. Characterize how leadership substitutes work. 6. Identify and define the variables in the situational leadership model. 7. Clarify how empowerment can increase the power and autonomy of organizational members.

2001 South-Western Publishing

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Leadership Defined
A responsibility and a process that is an observable, understandable, learnable set of skills and practices available to everyone, anywhere in the organization.

2001 South-Western Publishing

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What is leadership
The process of directing and influencing the task-related activities of group members

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Leadership Defined
A responsibility and a process that is an observable, understandable, learnable set of skills and practices available to everyone, anywhere in the organization.

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Implications of leadership
1.Leadership involve other people 2.Leadership involve an unequal distribution of power 3.Leaders can influence subordinates in a variety of ways

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The importance leadership

1.To direct and supervise subordinates 2.To influence and motivates subordinates 3.To encourage teamwork 4.To enhance cooperation 5.To accomplish org objectives

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Approaches to the study on leadership

1. Leader centered approach

2. Follower centered approach

3. Interactive approach

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Leader-Centered Approaches
Slide 1 of 4

Leader-Centered Approaches
Trait focus Behavior focus Power focus

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Leader-Centered Approaches
Slide 1 of 4

Trait Focus
The assumption that some people are endowed with certain physical characteristics (e.g., height, appearance), aspects of personality (e.g., self-esteem, dominance, emotional stability), and aptitudes (e.g., general intelligence, creativity).

2001 South-Western Publishing

Transparency 13-12

The Trait Approach To Leadership

1.Assumed that leaders were born and not made. 2.Researchers took two approaches : i) Compare the traits of leaders and non leaders ii) Compare the traits of effective leaders and ineffective leaders
Transparency 13-13

2001 South-Western Publishing

The Trait Approach To Leadership

3.Examples of desirable traits include wisdom, courage, honesty and sincerity. 4.Examples of traits compared include physical characteristics, mental ability, charisma, attitude

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The Trait Approach To Leadership

5.However the trait theory is inconclusive because of many conflicting evidence.

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Leader-Centered Approaches
Slide 2 of 4

Behavior Focus
Examines what effective leaders do rather than what effective leaders are.

2001 South-Western Publishing

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Leader-Centered Approaches
Slide 3 of 4

Behavioral Models
Define 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 worker performance. Relations orientation - A behavior that shows empathy for concerns and feelings, being supportive of needs, showing trust, and similar attributes.

2001 South-Western Publishing

Transparency 13-17

The Behavioral Approach To Leadership

Assumes that leadership can be learned Focused on two aspect of leadership behavior : i) Leadership function ii) Leadership style
2001 South-Western Publishing Transparency 13-18

Leadership Function
A leader performs two major functions: a) Task related or problem solving functions b) Group maintenance or social functions.
2001 South-Western Publishing Transparency 13-19

Leadership styles
a) Task oriented styles - focus on closely supervise subordinates b) Employee oriented styles Focus on motivating rather than controlling subordinates

2001 South-Western Publishing

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Types Of Behavioral Leadership Theories

1.The Ohio State University studies 2.The University of Michigan studies 3.The Managerial Grid 4.Likert System 4 Management

2001 South-Western Publishing

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The Ohio State University Studies

Researchers at OSU uses two variables: a) Initiating structure b) Consideration
They found that the most effective leadership styles is High consideration.

2001 South-Western Publishing

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OSU Studies
2/2

High Low structure High consideration High structure High consideration

Consideration
Low structure Low consideration High Structure Low consideration

Low

Low Structure
2001 South-Western Publishing

High

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The Ohio State University Studies

However the researchers also found that effective leadership style also depend on situational factors. For example Air force commanders who were rated high on consideration were less effective

2001 South-Western Publishing

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University Of Michigan Studies

Distinguished between Production centered and Employee centered managers Found that the most effective leadership style is the Employee centered.

2001 South-Western Publishing

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The Managerial Grid

Developed by Robert Blake and Jane Mouton Identifies five types of leadership styles :
1. Style 1,1- Impoverished mgt. Low concern for both people and production. Also known as Laissez-faire management.

2001 South-Western Publishing Transparency 13-26

The Managerial Grid

2.Style 1,9 - Country club mgt.High concern employees but low concern for production 3.Style 5,5 - Middle of the road mgt Intermediate concern for both production and employees.

2001 South-Western Publishing

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The Managerial Grid

4.Style 9,1 - Autocratic mgt. High concern for production but low concern for people. 5.Style 9,9 -Team or democratic mgt. High concern for both production and employees.This is the most effective style.
2001 South-Western Publishing Transparency 13-28

The Diagram
2/3

C O N C E R N

9 8 7 6

1,9

9,9

F O R
P E O P L E

5
4 3

5,5

2
1 1

1,1

9,1

9
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2001 South-Western Publishing

CONCERN FOR PRODUCTION

Likert System Four Management

Developed by Rensis Likert Proposed that there are four types of management styles: 1. Autocratic authoritative - Mgt make all decisions. Subordinates do not have any rights to contribute ideas.

2001 South-Western Publishing

Transparency 13-30

Likert System Four Management

2.Benevolent Authoritative - Subordinates are given some latitude to contribute ideas but mgt still makes the final decisions. 3.Consultative- Subordinates contributions are encourage. 4.Participative - Team or democratic styles

2001 South-Western Publishing

Transparency 13-31

Leader-Centered Approaches
Slide 4 of 4

Power Focus
The ability to marshal human, informational, or material resources to get something done.

Two Categories of Power

Position power: Power derived from the opportunities inherent in a persons position in an organization. Personal power: Power derived from the interpersonal relationships between leaders and followers.
2001 South-Western Publishing Transparency 13-32

Forms of Position Power

Slide 1 of 4

Legitimate Power
Power that stems from formal authority. Some people accept this power, as long as it is not abused, because they attribute legitimacy to the formal position and to the person who holds that position.

2001 South-Western Publishing

Transparency 13-33

Forms of Position Power

Slide 2 of 4

Coercive Power
The power to discipline, punish, and withhold rewards. Coercive power is important largely as a potential, rather than an actual, influence. For example, the threat of being disciplined for not getting to work on time may be effective in changing an employees behavior.

2001 South-Western Publishing

Transparency 13-34

Forms of Position Power

Slide 3 of 4

Reward Power
Derived from control over tangible benefits, such as a promotion, a better job, a better work schedule, or some form of recognition. For reward power to be influential, the employee must value the rewards.

2001 South-Western Publishing

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Forms of Position Power

Slide 4 of 4

Information Power
Control over information that involves the leaders power to access and distribute information that is either desired or vital to others.

2001 South-Western Publishing

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Forms of Personal Power

Slide 1 of 2

Expert Power
The power to influence another person because of expert knowledge and competence. Computer specialists often have substantial expert power in organizations because they have technical knowledge that others need.

2001 South-Western Publishing

Transparency 13-37

Forms of Personal Power

Slide 2 of 2

Referent Power
The ability to influence others based on personal liking, charisma, and reputation. It is manifested through imitation or emulation. Much of the power wielded by strong political leaders, professional athletics, musicians, and artists is referent power.

2001 South-Western Publishing

Transparency 13-38

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.

2001 South-Western Publishing

Transparency 13-39

Follower-Centered Approaches
Slide 1 of 5

1.Self-Leadership Focus 2.Leadership substitutes

2001 South-Western Publishing

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Follower-Centered Approaches
Slide 1 of 5

Self-Leadership Focus
Self-leadership, sometimes referred to as followership, is a paradigm founded on creating an organization of leaders who are ready to lead themselves.

2001 South-Western Publishing

Transparency 13-41

Characteristics of self-leadership
1.Capacity to motivate themselves 2.Loyalty to the organization 3.Stay focus on tasks 4.Understanding of the org 5.Willingness to take the initiative 6.Skilfulness and flexibility 7.Responsible for their actions

2001 South-Western Publishing

Transparency 13-42

Leadership substitutes
Variables that tend to outweigh or prevents the leader from having an effect on a follower performance. Also known as Neutralizer.

2001 South-Western Publishing

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Three major variables of Leadership substitutes

1. Individual characteristics 2.Task characteristics 3.Organizational characteristics.

2001 South-Western Publishing

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Follower-Centered Approaches
Slide 3 of 5

Leadership Substitutes Individual characteristics Experience

Training
Ability Professional orientation

Indifference to organizational rewards

2001 South-Western Publishing

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Follower-Centered Approaches
Slide 4 of 5

Leadership Substitutes Task characteristics Degree of intrinsic satisfaction

Degree of repetitiveness
Degree of structure or feedback

2001 South-Western Publishing

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Follower-Centered Approaches
Slide 5 of 5

Leadership Substitutes Organizational characteristics Degree of formality

Degree of flexibility
Amount of cohesiveness Independence of reward structure

Degree of spatial distance from manager

2001 South-Western Publishing Transparency 13-47

Interactive Approaches
Slide 1 of 7

Interactive Approaches
Another method of examining leadership effectiveness is to look at how leaders interact with their followers.

The three approaches covered: Situational leadership model Empowerment Transformational leadership

2001 South-Western Publishing

Transparency 13-48

Interactive Approaches
Slide 2 of 7

Situational Leadership Model

Examines the interaction between leadership behavior, the situation, and the followers readiness.
Readiness - The extent to which a subordinate possesses the ability and willingness to complete a specific task. Task behavior - The extent to which a leader organizes and defines the role of followers by explaining what each person must do and when, where, and how tasks are to be accomplished.
2001 South-Western Publishing Transparency 13-49

Interactive Approaches
Slide 3 of 7

Situational Leadership Model

Four styles of 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 the subordinates with few task or relations behaviors.
2001 South-Western Publishing Transparency 13-50

The Diagram
HIGH PHASE 3 High Relationship Low Task PHASE 2 High Task Low Relationship

Relationship behavior
PHASE 4 Low Task Low Relationship LOW HIGH (Maturity)
2001 South-Western Publishing

PHASE 1 High Task Low Relationship

TASK BEHAVIOR

LOW (Immaturity)
Transparency 13-51

Hersey and Blanchards Situational leadership theory(life-cycle theory)

1.Formulated by Paul Hersey and Kenneth Blanchard 2.Hold that the most effective leadership style varies with the maturity of subordinates. 3.Maturity is not define in terms of age or emotional stability but a desire for achievement, etc
2001 South-Western Publishing Transparency 13-52

Four Stages in The Situational leadership theory(life-cycle theory)

Stage 1 - Telling Stage Stage 2 - Selling Stage Stage 3 - Participating Stage Stage 4 - Delegating Stage

2001 South-Western Publishing

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Stage 1 - Telling Stage

High Task A directive leadership is needed. A non directive leader will create anxiety and confusions among new workers Low relationship Managers and subordinates are in the process of knowing each other.
2001 South-Western Publishing Transparency 13-54

Stage 2 - Selling Stage

High Task Detail instructions is still essential because subordinates are not yet able to function without the structure High Relationship Subordinate need the support and encouragement from the leader

2001 South-Western Publishing

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Stage 3 - Participating Stage

Low Task - Subordinates have more ability.Therefore the leader will no longer need to be as directive. High Relationship The leader will still have to be supportive.

2001 South-Western Publishing

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Stage 4 - Delegating Stage

Low Task, Low Relationship Subordinates become more confident, self directing and experienced. Followers no longer need direction.They are on their own.
2001 South-Western Publishing Transparency 13-57

Interactive Approaches
Slide 4 of 7

Empowerment
The interaction of the leader giving away or sharing power with those who use it to become involved and committed to independent, highquality performance. Successful empowerment means that everyone has been convinced that he or she makes a difference to the success of the organization.

2001 South-Western Publishing

Transparency 13-58

Interactive Approaches
Slide 5 of 7

Transformational Leadership
The interaction process of the leaders behavior and attitudes with the attitudes and behaviors of followers.

e.g Leaders promotes innovation and creativity and subordinates should try new approaches.

2001 South-Western Publishing

Transparency 13-59

The Path-Goal Approach To Leadership

1.Formulated by Martin Evans and Robert House 2.Based on the Expectancy Model 3.Focuses on the leader as a source of rewards.I.e Managers must clarify the availability of rewards and what subordinates must do to earn them.

2001 South-Western Publishing

Transparency 13-60

Four Leadership Styles Based On The Path Goal Theory

1.Directive- Provide detail instructions and guidelines 2.Supportive- Show concern for the needs of subordinates
3.Participative 4.Achievement oriented influence subordinates to have a strong need for success
2001 South-Western Publishing Transparency 13-61

What is the situational approaches to leadership?

The situational approaches to leadership focuses on the situational factors influencing managerial style. It assumes that there is no one best leadership style .I.e effective leadership depends on situational factors
2001 South-Western Publishing Transparency 13-62

Situational Factors in Leadership Effectiveness

1.The leaders personality, past experiences and expectations. 2.The expectations and behavior of superiors 3.Subordinates characteristic, expectations and behaviors

2001 South-Western Publishing

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Situational Factors in Leadership Effectiveness

4.Task requirements 5.Organizational culture and policies 6.Peers expectation and behavior

2001 South-Western Publishing

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Interactive Approaches
Slide 6 of 7

Primary Dimensions of Transformational Leadership

Dimension Individualize Consideration Leaders Specific Behavior Mentors; is attentive to achievement and growth needs Followers Behavior Is motivated, feels valued

Intellectual Stimulation

Promotes innovation and creativity; reframes problems

Is encouraged to be novel and try new approaches

2001 South-Western Publishing

Transparency 13-65

Interactive Approaches
Slide 7 of 7

Primary Dimensions of Transformational Leadership

Dimension Inspirational Motivation Leaders Specific Behavior Provides meaning and challenge through prosocial, collective action Followers Behavior Is aroused by team spirit; enthusiastic; optimistic

Idealized Influence

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

Shows admiration; respect; trust

2001 South-Western Publishing

Transparency 13-66

Leader-Centered Approaches
Slide 1 of 4

Leader-Centered Approaches
Focus on traits, leader behaviors, and power.

Trait Focus
The assumption that some people are endowed with certain physical characteristics (e.g., height, appearance), aspects of personality (e.g., self-esteem, dominance, emotional stability), and aptitudes (e.g., general intelligence, creativity).

2001 South-Western Publishing

Transparency 13-67

Leader-Centered Approaches
Slide 2 of 4

Trait Focus (cont.)

According to trait focused research, successful leaders tend to possess the following traits:
Drive, motivation, honesty and integrity, selfconfidence, conceptual ability, and business knowledge.

Behavior Focus
Examines what effective leaders do rather than what effective leaders are.
2001 South-Western Publishing Transparency 13-68

Leader-Centered Approaches
Slide 3 of 4

Behavioral Models
Define 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 worker performance. Relations orientation - A behavior that shows empathy for concerns and feelings, being supportive of needs, showing trust, and similar attributes.

2001 South-Western Publishing

Transparency 13-69

Leader-Centered Approaches
Slide 4 of 4

Power Focus
The ability to marshal human, informational, or material resources to get something done.

Two Categories of Power

Position power: Power derived from the opportunities inherent in a persons position in an organization. Personal power: Power derived from the interpersonal relationships between leaders and followers.
2001 South-Western Publishing Transparency 13-70

Forms of Position Power

Slide 1 of 4

Legitimate Power
Power that stems from formal authority. Some people accept this power, as long as it is not abused, because they attribute legitimacy to the formal position and to the person who holds that position.

Company CEO
2001 South-Western Publishing Transparency 13-71

Forms of Position Power

Slide 2 of 4

Coercive Power
The power to discipline, punish, and withhold rewards. Coercive power is important largely as a potential, rather than an actual, influence. For example, the threat of being disciplined for not getting to work on time may be effective in changing an employees behavior.

2001 South-Western Publishing

Transparency 13-72

Forms of Position Power

Slide 3 of 4

Reward Power
Derived from control over tangible benefits, such as a promotion, a better job, a better work schedule, or some form of recognition. For reward power to be influential, the employee must value the rewards.

2001 South-Western Publishing

Transparency 13-73

Forms of Position Power

Slide 4 of 4

Information Power
Control over information that involves the leaders power to access and distribute information that is either desired or vital to others.

2001 South-Western Publishing

Transparency 13-74

Forms of Personal Power

Slide 1 of 2

Expert Power
The power to influence another person because of expert knowledge and competence. Computer specialists often have substantial expert power in organizations because they have technical knowledge that others need.

2001 South-Western Publishing

Transparency 13-75

Forms of Personal Power

Slide 2 of 2

Referent Power
The ability to influence others based on personal liking, charisma, and reputation. It is manifested through imitation or emulation. Much of the power wielded by strong political leaders, professional athletics, musicians, and artists is referent power.

2001 South-Western Publishing

Transparency 13-76

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.

2001 South-Western Publishing

Transparency 13-77

Follower-Centered Approaches
Slide 1 of 5

Self-Leadership Focus
Self-leadership, sometimes referred to as followership, is a paradigm founded on creating an organization of leaders who are ready to lead themselves.

2001 South-Western Publishing

Transparency 13-78

Follower-Centered Approaches
Slide 2 of 5

Leadership Substitutes
Variables such as individual, task, and organizational characteristics. Neutralizer
A condition that counteracts leader behavior and/or prevents the leader from having an effect on a follower or a specific situation.

2001 South-Western Publishing

Transparency 13-79

Interactive Approaches
Slide 1 of 7

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

2001 South-Western Publishing

Transparency 13-80

Interactive Approaches
Slide 2 of 7

Situational Leadership Model

Examines the interaction between leadership behavior, the situation, and the followers readiness.
Readiness - The extent to which a subordinate possesses the ability and willingness to complete a specific task. Task behavior - The extent to which a leader organizes and defines the role of followers by explaining what each person must do and when, where, and how tasks are to be accomplished.
2001 South-Western Publishing Transparency 13-81

Interactive Approaches
Slide 3 of 7

Situational Leadership Model

Four styles of 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 the subordinates with few task or relations behaviors.
2001 South-Western Publishing Transparency 13-82

Interactive Approaches
Slide 4 of 7

Empowerment
The interaction of the leader giving away or sharing power with those who use it to become involved and committed to independent, highquality performance. Successful empowerment means that everyone has been convinced that he or she makes a difference to the success of the organization.

2001 South-Western Publishing

Transparency 13-83

Interactive Approaches
Slide 5 of 7

Transformational Leadership
The interaction process of the leaders behavior and attitudes with the attitudes and behaviors of followers. There are four primary dimensions of transformational leadership: idealized influence, inspirational motivation, intellectual stimulation, and individual consideration.

2001 South-Western Publishing

Transparency 13-84

Interactive Approaches
Slide 6 of 7

Primary Dimensions of Transformational Leadership

Dimension
Individualize Consideration

Leaders Specific Behavior

Mentors; is attentive to achievement and growth needs

Followers Behavior
Is motivated, feels valued

Intellectual Stimulation

Promotes innovation and creativity; reframes problems

Is encouraged to be novel and try new approaches

2001 South-Western Publishing

Transparency 13-85

Interactive Approaches
Slide 7 of 7

Primary Dimensions of Transformational Leadership

Dimension
Inspirational Motivation

Leaders Specific Behavior

Provides meaning and challenge through prosocial, collective action

Followers Behavior
Is aroused by team spirit; enthusiastic; optimistic

Idealized Influence

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

Shows admiration; respect; trust

2001 South-Western Publishing

Transparency 13-86

Women as Leaders
The number of women in leadership positions has increased steadily since 1970. Women occupy slightly over 25 percent of the supervisory positions in U.S. industry and just 11 percent of senior executive positions in Fortune 500 companies, although they represented 51% of the population in 1999.

2001 South-Western Publishing

Transparency 13-87

Principles of Leadership Effectiveness

Slide 1 of 2

Know yourself. Be a role model. Learn to communicate with your ears open and your mouth shut. Know your team and be a team player. Be honest with yourself as well as to others.

2001 South-Western Publishing

Transparency 13-88

Principles of Leadership Effectiveness

Slide 2 of 2

Do not avoid risks. Believe in yourself. Take the offense rather than the defense. Know the ways of disagreement and the means of compromise. Be a good follower.

2001 South-Western Publishing

Transparency 13-89