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LEADERSHIP IN ORGANIZATIONS
MANAGEMENT 6th Ed.
By: Richard Daft
Prepared by: GREGAR DONAVEN E. VALDEHUEZA, MBA
Lourdes College Instructor
Learning Objectives Define leadership and explain its importance for organizations. Identify personal characteristics associated with effective
leaders. Explain the five sources of power and how each causes different
subordinate behavior. Describe the leader behaviors of initiating structure and
consideration and when they should be used. Describe Hersey and Blanchard’s situational theory and its
application to subordinate participation. Explain the path-goal model of leadership. Discuss how leadership fits the organizational situation and how
organizational characteristics can substitute for leadership behaviors.
Describe transformational leadership and when it should be used. Explain innovative approaches to leadership in the new workplace.
The Nature of Leadership
Leadership occurs among people, involves the use of influence, and is used to attain goals.
Leadership:
the ability to influence people toward the attainment of goals.
Leadership versus Management
Leader qualities
SOULVisionary
PassionateCreativeFlexibleInspiring
InnovativeCourageousImaginative
ExperimentalInitiates changePersonal power
Manager qualities
MINDRational
ConsultingPersistent
Problem solvingTough-minded
AnalyticalStructuredDeliberate
AuthoritativeStabilizing
Position power
Major differences between manager and leader qualities relates to the source of power and the level of compliance it engenders within followers.
Power:
the potential ability to influence others’ behavior.
Position Power
Legitimate Power Power that stems from a formal management
position in an organization and the authority granted to it.
Reward Power Power that results from the authority to bestow
rewards on other people.
Coercive Power Power that stems from the authority to punish or
recommend punishment.
Personal Power
Expert Power Power that stems from special knowledge of or
skill in the tasks performed by subordinates.
Referent Power Power that results from characteristics that
command subordinates’ identification with, respect and admiration for, and desire to emulate the leader.
Empowerment
the giving or delegation of power; authority (www.freedictionary.com)
Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways. (humanresources.about.com)
Empowering employees works because total power in the organization seems to increase. Everyone has to say and hence contributes more to organizational goals.
Leadership Traits
Traits:
the distinguishing personal characteristics of a leader, such as intelligence, values, and appearance.
Personal Characteristics of Leaders
Physical Characteristics: Energy Physical stamina
Intelligence & Ability: Intelligence, cognitive ability Knowledge Judgment, decisiveness
Personality: Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence
Social Characteristics: Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy
Work Related Characteristics: Achievement drive, desire to
excel Conscientiousness in pursuit of
goals Persistence against obstacles,
tenacitySocial Background:
Education Mobility
Autocratic versus Democratic Leaders
Autocratic leader Leader who tends to centralize authority and
rely on legitimate, reward, and coercive power to manage subordinates.
Democratic leader Leader who delegates authority to others,
encourages participation, and relies on expert and referent power to influence subordinates.
Leadership Continuum
Manager presents problem, gets suggestions, makes decision
Manager defines limits, asks group to make decision
Manager makes decision and announces it
Manager “sells” decision
Manager presents ideas and invites questions
Manager presents tentative decision subject to change
Manager permits subordinates to function within limits defined by superior
Subordinate-Centered Leadership
Area of freedom for subordinates
Use of authority by managers
Boss-Centered Leadership
Behavioral Approaches
Ohio State Studies2 major behaviors: Consideration
- The type of behavior that describes the extent to which the leader is sensitive to subordinates, respects their ideas and feelings, and establishes mutual trust.
Initiating structure- A type of leader behavior that describes
the extent to which the leader is task oriented and directs subordinates work activities toward goal attainment.
A leader may have any of four styles:
high initiating structure – low consideration high initiating structure – high consideration low initiating structure – low consideration low initiating structure – high consideration
Michigan Studies
Employee-centered leaders: Established high performance goals and
displayed supportive behavior toward subordinates.
Job-centered leaders: Less concerned with goal achievement and
human needs in favor of meeting schedules, keeping costs low, and achieving production efficiency.
The Leadership Grid
A two-dimensional leadership theory that measures leader’s concern for people and concern for production.
Leadership Grid Figure9
7
6
5
4
3
2
1
8
1 2 3 4 5 6 7 8 9
Team Management (9,9)Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect.
Country Club Management (1,9)Thoughtful attention to the needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo.
Middle-of-the-Road Management (5,5)Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level.
Impoverished Management (1,1)Exertion of minimum effort to get required work done is appropriate to sustain organization membership.
Authority-Compliance (9,1)Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree
C O N C E R N F O R P R O D U C T I O N
CONCERN
FOR
PEOPLE
Contingency Approaches
A model of leadership that describes the relationship between leadership styles and specific organizational situations.
Fiedler’s Contingency Theory
Leadership Style: Relationship-oriented leader – concerned
with people, as in the consideration style. Task-oriented leader – primarily motivated
by task accomplishment, which is similar to the initiating structure style.
Leadership style was measured with a questionnaire known as the Least Preferred Coworker (LPC) scale.
example:
open - - - - - - - - guarded
quarrelsome - - - - - - - - harmonious
efficient - - - - - - - - inefficient
Situation:
Leadership situations can be analyzed in terms of three elements.
1. Leader-member relations – refers to group atmosphere and members’ attitude toward and acceptance of the leader.
2. Task structure – refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals.
3. Position power – is the extent to which the leader has formal authority over subordinates.
How Leader Style Fits the Situation
A leader needs to know two things in order to use Fiedler’s Contingency Theory:
The leader should know whether he/she has a relationship- or task-oriented style.
The leader should diagnose the situation and determine whether leader-member relations, task structure, and position power are favorable or unfavorable.
Hersey and Blanchard’s Situational Theory
Situational Theory A contingency approach to leadership that links
the leader’s behavioral style with the task readiness of subordinates.
Four leadership styles:
1. Telling style – reflects a high concern for production and a low concern for people. (Directive style)
2. Selling style – based on a high concern for both people and production.
3. Participating style – based on a combination of high concern for people and low concern for production.
4. Delegating style – reflects a low concern for both people and production.
Low Readiness Level Telling Style
Moderate Readiness Level Selling Style
High Readiness Level Participating Style
Very High Readiness Level Delegating Style
Hersey-Blanchard’s Situational Theory of Leadership
Path-Goal Theory A contingency approach to leadership
specifying that the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards.
This model is called a contingency theory because it consists of three sets of contingencies (leader behavior and style, situational contingencies, and the use of rewards to meet subordinates’ needs.)
Fiedler Theory assumption would be to switch leaders as situations change. In Path-Goal Theory, leaders switch their behaviors to match the situation.
Leader Roles in the Path-Goal Theory
Fourfold classification of leader behaviors:
1. Supportive leadership – involves leader behavior that shows concern for subordinates’ well-being and personal needs. This is similar to the consideration leadership.
2. Directive leadership – occurs when the leader tells subordinates exactly what they are supposed to do. This is similar to the initiating-structure leadership.
3. Participative leadership – the leader consults with his/her subordinates about decisions.
4. Achievement-oriented leadership – occurs when the leader sets clear and challenging goals for subordinates.
Two important situational contingencies are:
1. The personal characteristics of group members.Include such factors:
Ability Skills Needs Motivations
2. The work environment.Include such factors:
Degree of task structure – the extent task are well-defined and have explicit descriptions and work procedures.
Nature of formal authority system – the amount of legitimate power used by managers and the extent to which policies and rules constrain employees’ behavior.
The work group – the educational level of subordinates and the quality of relationships among them.
Path-Goal Situations & Preferred Leader Behavior
Substitute for Leadership
The final contingency approach suggests that situational variables can be so powerful that
they actually substitute for or neutralize the need for leadership.
Substitute – a situational variable that makes a leadership style unnecessary or redundant.
Neutralizer – a situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors.
Substitute and Neutralizers for Leadership
Variable Task-OrientedLeadership
People-OrientedLeadership
Organizational variables: Group cohesiveness Substitute for Substitute for
Formalization Substitute for No effect on
Inflexibility Neutralizes No effect on
Low positional power Neutralizes Neutralizes
Physical separation Neutralizes Neutralizes
Task characteristics: Highly structured task Substitute for No effect on
Automatic feedback Substitute for No effect on
Intrinsic satisfaction No effect on Substitute for
Group characteristics: Professionalism Substitute for Substitute for
Training/experience Substitute for No effect on
Change Leadership
Transactional Leader Leader who clarifies the role and task
requirements of subordinates, initiate structure, provide appropriate rewards, and try to be considerate to and meet the social needs of subordinates.
Charismatic Leader Leader who has the ability to motivate
subordinates to transcend their expected performance.
Impact of charismatic leaders is normally from:
1. Stating a lofty vision of an imagined future that employees identify with.
Vision – an attractive, ideal future that is credible yet not readily attainable.
2. Shaping a corporate value system for which everyone stands.
3. Trusting subordinates and earning their complete trust in return.
Charismatic leaders tend to be less predictable than transactional leaders. They create an atmosphere of change , and they may be obsessed by visionary ideas that excite, stimulate, and drive other people to work hard.
Transformational Leader A leader distinguished by a special ability to bring
about innovation and change by recognizing followers’ needs and concerns, helping them look at old problems in new ways, and encouraging them to question the status quo.
Leading the New Workplace
Four areas of particular interest for leadership in the new workplace are a new concept referred to as:
Level 5 leadership
Women’s ways of leading
Virtual leadership
Servant leadership
Level 2: Contributing Team MemberContributes to the achievement of team goals; works effectively with others in a group.
Level 1: Highly Capable IndividualProductive contributor; offers talent, knowledge, skills, and good work habits as an individual employee.
Level 3: Competent ManagerSets plans and organizes people for the efficient and effective pursuit of objectives.
Level 4: The Effective ExecutiveBuilds widespread commitment to a clear and compelling vision; stimulates people to high performance.
Level 5: The Level 5 LeaderBuilds an enduring great organization through a combination of personal humility and professional resolve.
The Level 5 Leadership Hierarchy
Leading the New Workplace
Four areas of particular interest for leadership in the new workplace are a new concept referred to as:
Level 5 leadership
Women’s ways of leading
Virtual leadership
Servant leadership
Recent research indicates that women’s style of leadership is particularly suited to today’s organizations.
Female managers score significantly higher than men on abilities such as motivating others, fostering communication, and listening.
Interactive leadership A leadership style characterized by values such as
inclusion, collaboration, relationship building, and caring.
Leading the New Workplace
Four areas of particular interest for leadership in the new workplace are a new concept referred to as:
Level 5 leadership
Women’s ways of leading
Virtual leadership
Servant leadership
People who excel as virtual leaders tend to be open-minded and flexible, exhibit positive attitudes that focus on solutions rather than problems, and have superb communication, coaching, and relationship-building skills.
Essentials in virtual environment: Building trust Maintaining open lines of communication Caring about people Being open to subtle cues from others
Leading the New Workplace
Four areas of particular interest for leadership in the new workplace are a new concept referred to as:
Level 5 leadership
Women’s ways of leading
Virtual leadership
Servant leadership
Servant leadership, first described by Robert Greenleaf, is leadership upside down because leaders transcend self-interest to serve others and the organization.
Servant leader A leader who works to fulfill subordinates’ needs
and goals as well as to achieve the organization’s larger mission.
END
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