chapter 14 copyright ©2007 by south-western, a division of thomson learning. all rights reserved 1...

1

Chapter 14Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved

Chapter 14

Prepared byDeborah Baker

Texas Christian University

Management4th Edition

Chuck Williams

Leadership

2


What Would You Do?

The new CEO of Tyco is faced with $28 billion in debt, and the possibilities of bankruptcy

Dennis Kozlowski’s reign as CEO is still embarrassing, when he used funds as his personal piggy bank

43rd Floor, Tyco Headquarters, New York City.

How can you get people to see that with sound management, Tyco can be an exceptional company?

3


What Is Leadership?

After reading these sections, you should be able to:

1. explain what leadership is.

2. describe who leaders are and what effectiveleaders do.

4


Leadership

DifferencesBetween

Leaders andManagers

DifferencesBetween

Leaders andManagers

Substitutesfor

Leadership

Substitutesfor

Leadership

11

5


Leaders versus Managers

MANAGERS

Do things rightStatus quoShort-term

MeansBuilders

Problem solving

MANAGERS

Do things rightStatus quoShort-term

MeansBuilders

Problem solving

LEADERS

Do the right thingChange

Long-termEnds

ArchitectsInspiring & motivating

LEADERS

Do the right thingChange

Long-termEnds

ArchitectsInspiring & motivating

Adapted from Exhibit 14.1

1.11.1

6


Leaders versus Managers

1.11.1

American organizations (and probably those in much of the rest of the industrialized world) are under led

and over managed. They do not pay enoughattention to doing the right thing, while theypay too much attention to doing things right.

--Warren Bennis

American organizations (and probably those in much of the rest of the industrialized world) are under led

and over managed. They do not pay enoughattention to doing the right thing, while theypay too much attention to doing things right.

--Warren Bennis

7


Doing the Right Thing

1.11.1

The Three M’s: Mission, Mentor, and Mirror

Business leaders can develop personal ethics by focusing on their mission, a mentor, and the mirror

1. Develop a personal mission statement.

2. Take care in choosing a mentor.

3. Stand in front of the mirror to assess yourethical performance as a business leader.

The Three M’s: Mission, Mentor, and Mirror

Business leaders can develop personal ethics by focusing on their mission, a mentor, and the mirror

1. Develop a personal mission statement.

2. Take care in choosing a mentor.

3. Stand in front of the mirror to assess yourethical performance as a business leader.

8


Substitutes for Leadership

Leadership substitutes subordinate, task, or organizational characteristics

that make leaders redundant or unnecessary

Leadership neutralizers subordinate, task, or organizational characteristics

that interfere with a leader’s actions

Leaders don’t always matter Poor leadership is not the cause of every

organizational crisis

1.21.2

9


Leadership Substitutes and Neutralizers


1.21.2

Characteristic People-RelatedLeadership Behaviors

Task-RelatedLeadership Behaviors

Subordinate Characteristics Ability, experience, training, knowledge Need for independence Professional orientation Indifference toward organizational rewards

NeutralizeNeutralizeSubstitute, NeutralizeNeutralize

Substitute, NeutralizeNeutralizeSubstitute, NeutralizeNeutralize

Task Characteristics Unambiguous and routine tasks Performance feedback provided by the

work itself Intrinsically satisfying work

No effectNo effect

Substitute, Neutralize

Substitute, NeutralizeSubstitute, Neutralize

Neutralize

Organizational Characteristics Formalization, meaning specific plans,

goals, and areas of responsibility Inflexibility, meaning rigid, unbending rules

and procedures Highly specified staff functions Cohesive work groups Organizational rewards beyond a leader's

control Spatial distance between supervisors and

subordinates

No effect

No effect

No effectSubstitute, NeutralizeNeutralize

Neutralize

Neutralize

Neutralize

NeutralizeSubstitute, NeutralizeNeutralize

Neutralize

10


Who Leaders Are and What Leaders Do

Leadership Traits

Leadership Traits

LeadershipBehavior

LeadershipBehavior

22

11


Leadership Traits

LeadershipTraits

Desireto Lead

Honestyand

Integrity

Drive Self-Confidence

EmotionalStability

CognitiveAbility

Knowledgeof the

Business

2.12.1


12


What Really Works: Leadership Traits

Intelligence10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

probability of success 75%

Dominance10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Extroversion10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Traits and Perceptionsof Leadership Effectiveness

2.12.1

13


What Really Works: Leadership Traits

Charisma and Performance10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Charisma and Perceived Leadership Effectiveness10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Charisma and Leader Satisfaction10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Charisma and Leadership Effectiveness

2.12.1

14


Leadership Behaviors

2.22.2

Initiating Structure

The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks.

Consideration

The extent to which a leader is friendly, approachable, and supportive and shows concern for employees.

15


Blake/Moulton Leadership Grid

1,91,9 Country Club Country Club ManagementManagement

9,9 9,9 Team Team ManagementManagement

1,11,1Impoverished Impoverished ManagementManagement 9,19,1

Authority-Authority-ComplianceCompliance

5,55,5Middle of theMiddle of the

RoadRoad5,55,5

1 2 3 4 5 6 7 8 91

2

3

4

5

6

7

8

9


2.22.2

Co

nce

rn f

or

Peo

ple

Concern for Production

High

Low

Low High

16


Situational Approaches to Leadership

After reading these sections, you should be able to:

3. explain Fiedler’s contingency theory.

4. describe how path-goal theory works.

5. discuss Hersey and Blanchard’s Situational Leadership theory.

6. explain the normative decision theory.

17


Putting Leaders in the Right Situation:Fiedler’s Contingency Theory

33

GroupPerformance

GroupPerformance =

LeadershipStyle

LeadershipStyle

SituationalFavorableness

SituationalFavorableness

18


Putting Leaders in the Right Situation:Fiedler’s Contingency Theory

Least Preferred CoworkerLeast Preferred Coworker

Situational FavorablenessSituational Favorableness

Matching Leadership Stylesto Situations

Matching Leadership Stylesto Situations

33

19


Leadership Style:Least Preferred Coworker

Leadership style is the way a leader generally behaves toward followers seen as stable and difficult to change

Style is measured by the Least Preferred Co-worker scale (LPC) relationship-oriented task-oriented

3.13.1

20


Leadership Style:Least Preferred Coworker Scale

3.13.1

21


Situational Favorableness

3.23.2


The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members.

Three factors: Leader-member relations Task structure Position power

22



Exhibit 14.7

3.23.2

23


Matching Leadership Styles to Situations

Exhibit 14.8

3.33.3

24


Path-Goal Theory

44

Path-Goal Theory

A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.

25


Basic Assumptions of Path-Goal Theory

Adapted From Figure 14.9

44

Clarify paths to goalsClarify paths to goals

Clear paths to goals by solving problems and removing roadblocks

Clear paths to goals by solving problems and removing roadblocks

Increase the number and kinds of rewardsavailable for goal attainment

Increase the number and kinds of rewardsavailable for goal attainment

Do things that satisfy followers today or will lead to future rewards or satisfaction

Do things that satisfy followers today or will lead to future rewards or satisfaction

Offer followers something unique and valuablebeyond what they’re experiencing

Offer followers something unique and valuablebeyond what they’re experiencing

26


Path-Goal Theory

Adapted From Figure 14.10

Subordinate Contingencies•Perceived Ability•Locus of Control•Experience

Subordinate Contingencies•Perceived Ability•Locus of Control•Experience

Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group

Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group

Outcomes•Subordinate satisfaction•Subordinate performance

Outcomes•Subordinate satisfaction•Subordinate performance

Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented

Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented

44

27


Adapting Leader Behavior:Path-Goal Theory

LeadershipStyles

LeadershipStyles

Subordinateand

EnvironmentalContingencies

Subordinateand

EnvironmentalContingencies

OutcomesOutcomes

44

28


Leadership Styles

Directive clarifying expectations and guidelines

Supportive being friendly and approachable

Participative allowing input on decisions

Achievement-Oriented setting challenging goals

4.14.1

29


Leadership Styles

Martin Winterkorn of Audi uses a directive style. His employees know exactly what is expected of them.

30


Subordinate and Environmental Contingencies

Perceived ability

Locus of control

Experience

Perceived ability

Locus of control

Experience

Subordinate Environmental

Task structure

Formal authority system

Primary work group

4.24.2

31


Path Goal Theory:When to Use Leadership Styles

Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of

control Unclear formal authority system

Structured, simple, repetitive tasks

Stressful, frustrating tasks When workers lack confidence Clear formal authority system

Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived ability Workers with internal locus of

control Workers not satisfied with rewards Complex tasks

Unchallenging tasks

Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of

control Unclear formal authority system

Structured, simple, repetitive tasks

Stressful, frustrating tasks When workers lack confidence Clear formal authority system

Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived ability Workers with internal locus of

control Workers not satisfied with rewards Complex tasks

Unchallenging tasks


4.24.2

32


Adapting Leadership Behavior

WorkerReadiness

WorkerReadiness

LeadershipStyles

LeadershipStyles

55

Hersey and Blanchard’s Situational Leadership Theory

33


Worker Readiness

The ability and willingness to take responsibility for directing one’s behavior at work

Components of worker readiness: Job readiness Psychological readiness

5.15.1

34


Worker Readiness

R4R4

R3R3

R2 R2

R1R1

confidentwilling able

confidentwilling able

insecurenot willingable

insecurenot willingable

confidentwilling not able

confidentwilling not able

insecure not able not willing

insecure not able not willing

5.15.1

35


Leadership Styles

Telling(R1)

Telling(R1)

Selling(R2)

Selling(R2)

Participating(R3)

Participating(R3)

Delegating(R4)

Delegating(R4)

high task behaviorlow relationship behavior

high task behaviorlow relationship behavior

high task behaviorhigh relationship behavior

high task behaviorhigh relationship behavior

low task behaviorhigh relationship behavior

low task behaviorhigh relationship behavior

low task behaviorlow relationship behavior

low task behaviorlow relationship behavior

5.25.2

36


Normative Decision Theory

DecisionStyles

DecisionStyles

Decision Quality and Acceptance


66

37


Decision Styles


6.16.1

Solve the problem yourself

Solve the problem yourself

Obtain information.Select a solutionyourself.

Obtain information.Select a solutionyourself.

Share problem,get ideas fromindividuals.Select asolution yourself.

Share problem,get ideas fromindividuals.Select asolution yourself.

AI AII CI

Share problemwith group,get ideas.Make decision,which may ormay not reflectinput.

Share problemwith group,get ideas.Make decision,which may ormay not reflectinput.

Share problemwith group.Together triesto reach a solution. Leader acts asfacilitator.

Share problemwith group.Together triesto reach a solution. Leader acts asfacilitator.

CII GII

Leader solves the problemor makes the decision

Leader accepts any decisionsupported by the entire group

38



Using the right amount of employee participation: improves decision quality improves acceptance

Decision tree helps leader identify

optimal level of participation

6.26.2

39


Quality RuleQuality Rule If the quality of the decision is important, then don't use

an autocratic decision style

Leader Information RuleLeader Information Rule If the quality of the decision is important, and if the leader

doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style

Subordinate Information RuleSubordinate Information Rule If the quality of the decision is important, and if the

subordinates don't have enough information to make the decision themselves, then don't use a group decision style

6.26.2

Normative Theory Decision Rulesto Increase Decision Quality

40


Normative Theory Decision Rulesto Increase Decision Quality

Goal Congruence RuleGoal Congruence Rule If the quality of the decision is important, and

subordinates' goals are different from the organization's goals, then don't use a group decision style

Problem Structure RuleProblem Structure Rule If the quality of the decision is important, the leader

doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style

6.26.2

41


Normative Theory Decision Rulesto Increase Decision Acceptance

Commitment Probability RuleCommitment Probability Rule If having subordinates accept and commit to the decision

is important, then don't use an autocratic decision style

Subordinate Conflict RuleSubordinate Conflict Rule If having subordinates accept the decision is important

and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style

Commitment Requirement RuleCommitment Requirement Rule If having subordinates accept the decision is absolutely

required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style

6.26.2

42


Strategic Leadership

After reading this section, you should be able to:

7. explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership.

43


Visionary Leadership

CharismaticLeadership

CharismaticLeadership

TransformationalLeadership

TransformationalLeadership

77

44


Charismatic Leadership

Creates an exceptionally strong relationship between leader and follower

Charismatic leaders: articulate a clear vision, based on values model values consistently with vision communicate high performance expectations display confidence in followers’ abilities

7.17.1

45


Kinds of Charismatic Leaders

Ethical Charismatics provide developmental opportunities open to positive and negative feedback recognize others’ contributions share information concerned with the interests of the group

Unethical Charismatics control and manipulate followers do what is best for themselves only want positive feedback motivated by self-interest

7.17.1

46


Ethical and Unethical Charismatic Leaders

Exercising Power Power is used to serve others

Creating the vision Followers help develop the vision

Communicating with followers

Two-way communication

Accepting feedback Open to feedback

Want followers to think and to questions the status quo

Stimulating followers

Developing followers Focus on developing followers

Living by moral standards

Three virtues: courage, sense of fairness, integrity

Charismatic Leader Charismatic Leader BehaviorsBehaviors

Ethical CharismaticsEthical Charismatics

7.17.1


47


Ethical and Unethical Charismatic Leaders

Charismatic Leader Charismatic Leader BehaviorsBehaviors

Unethical CharismaticsUnethical Charismatics

Exercising Power Power is used to dominate others

Creating the vision Vision comes solely from the leader

Communicating with followers

One-way communication, not open to input from others

Accepting feedback Prefer yes-men, punish candid feedback

Don’t want followers to think, prefer uncritical acceptance of own ideas

Stimulating followers

Developing followers Insensitive to followers’ needs

Living by moral standards

Follow standards only if they satisfy immediate self interests

7.17.1


48


Reducing Risks of Unethical Charismatics

1. Have a clearly written code of conduct

2. Recruit, select, and promote managers with high ethical standards

3. Train leaders how to value, seek, and used diverse points of view

4. Celebrate and reward those who exhibit ethical behaviors

7.17.1

49


Transformational Leadership

Generates awareness and acceptance of group’s purpose and mission

Gets followers to accomplish more than they intended or thought possible

7.27.2

50


Components of Transformational Leadership

1. Charisma or idealized influence

2. Inspirational motivation

3. Intellectual stimulation

4. Individualized consideration

7.27.2

chapter 14 copyright ©2007 by south-western, a division of thomson learning. all rights reserved 1...

Documents

division of thomson

poor leadership

leadership differences

leadership traits charisma

leadership traits desire

leadership traits intelligence

mirror business leaders

motivating leaders