Leadership in Organizations: Defining, Differentiating, and Improving

1. m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r Chapter 9: Leadership

2. Learning Objectives After studying this chapter, you should be able to: • Define leadership and be able to discuss its significance in organizations • Compare managing and leading and differentiate between them • Analyze a leader’s sources of power and issues in using power effectively • Describe and contrast the roles of the leader, followers, and the situation in the overall leadership process

3. Learning Objectives • Discuss the extent to which national cultures create differences in effective leadership behaviors from one country to another • Explain the conditions that can substitute for, or neutralize, effective leadership • Plan how to improve your own leadership capabilities

4. What is Leadership? Organizational leadership • Social influence process • Attempts to influence other people in attaining some goal Leadership behavior: • Can be shown by anyone • Is expected of most managers • Could be demonstrated more

5. What is Leadership? Effective leadership • Influence that assists an organization to meet its goals and perform successfully Effective leaders: • Enable people to accomplish more than if there had been no such leadership • Unlock other people’s potential

6. Leaders Create vision for organizations and units Promote major changes in goals and procedures Set and communicate new directions Inspire subordinates Managers Deal with interpersonal conflict Plan Organize Implement goals set by others (the leaders) Leading and Managing: The Same or Different?

7. Leaders and Managers Leaders Managers Adapted from Exhibit 9.1 Leading and Managing: The Same or Different? • Managing ought to involve most of the activities thought of as leading • Organizations need their managers to incorporate leadership roles into their behavior

8. Leadership Across Different National Cultures Examples of leader attributes universally viewed as negative Examples of leader attributes viewed as positive or negative depending on the culture Examples of leader attributes universally viewed as positive + + Trustworthy + Encouraging + Honest + Decisive + Communicative + Dependable - - Noncooperative - Irritable - Dictatorial - Ruthless - Egocentric - Asocial +/- +/- Ambitious +/- Individualistic +/- Cunning +/- Cautious +/- Class Conscious +/- Evasive Adapted from Exhibit 9.2

9. Leadership and Power Power • The capacity or ability to influence Power can: • Lead to greater capacity to influence • Be used to overcome resistance • Be abused and lead to undesirable consequences • Produce positive outcomes if used skillfully

10. Types of Power Position Power • Based on a manager's rank in an organizational structure and given to the manager by superiors • Based on a person's individual characteristics; stay with the individual regardless of his or her position in the organizational structure Personal Power

11. Types of Power Position Power Legitimate—How much authority does the organization give to your position? Reward—Are you able to give others the rewards they want? Coercive—Are you able to punish others or withhold rewards? Personal Power Expert—Do you have knowledge that others need? Referent—Do others respect you and want to be like you? Adapted from Exhibit 9.3

12. Four Key Issues in Using Power How much power should be used? Should power be shared? Which types of power should be used? How can power be put to use? Adapted from Exhibit 9.4 Adapted from Exhibit 10.2: Four Key Issues in Using Power

13. Types of Influence Tactics Rational Persuasion Uses logical arguments and factual evidence to show a proposal or request is feasible and relevant for attaining important task objectives Apprising Explains how carrying out a request or supporting a proposal will benefit the target personally or help advance the target person’s career Inspirational Appeals Makes an appeal to values and ideals or seeks to arouse the target person’s emotions to gain commitment for a request or proposal Consultation Encourages the target to suggest improvements in a proposal or to help plan an activity or change for which the target person’s support and assistance are desired Adapted from Exhibit 9.5

14. Types of Influence Tactics (cont.) Exchange Offers an incentive, suggests an exchange of favors, or indicates willingness to reciprocate at a later time if the target will do what the agent requests Collaboration Offers to provide relevant resources and assistance if the target will carry out a request or approve a proposed change Personal Appeals Asks the target to carry out a request or support a proposal out of friendship, or asks for a personal favor before saying what it is Ingratiation Uses praise and flattery before or during an influence attempt or expresses confidence in the target’s ability to carry out a difficult request Adapted from Exhibit 9.5

15. Types of Influence Tactics (cont.) Legitimating Tactics Seeks to establish the legitimacy of a request or to verify authority to make it by referring to rules, formal policies, or official documents Pressure Uses demands, threats, frequent checking, or persistent reminders to influence the target person Coalition Tactics Seeks the aid of others to persuade the target to do something or uses the support of others as a reason for the target to agree Adapted from Exhibit 9.5

16. Locus of Leadership Three leadership variables: • The leader • The situation • The followers Locus of leadership: • Where the three variables intersect Locus of Leadership Adapted from Exhibit 9.6

17. Drive Achievement, ambition, energy, tenacity, initiative Emotional maturity Even tempered, calm under stress, unself-centered, nondefensive Motivation to Lead Desire to influence others, comfortable using power Honesty and Integrity Trustworthy, open, forthright Self-confidence Set high goals for self and others, optimistic about overcoming obstacles (if taken to extreme, can lead to arrogance and sense of infallibility) Leaders’ Traits Leader Adapted from Exhibit 9.7

18. Charismatic Leadership Charismatic leadership • Is a strong form of referent power • Is based on individual inspirational qualities rather than formal power • Generates followers who identify with charismatic leaders because of these exceptional qualities • Is rare; very few people are considered truly “charismatic”

19. Attributes of Charismatic Leaders Adapted from Exhibit 9.8 Adapted from Exhibit 11.10: Attributes of the Charismatic Leader

20. Leaders’ Skills TECHNICAL SKILLS Specialized knowledge INTERPERSONAL SKILLS Sensitivity, persuasiveness, empathy CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities

21. Leaders’ Skills TECHNICAL SKILLS Specialized knowledge INTERPERSONAL SKILLS Sensitivity, persuasiveness, empathy CONCEPTUAL SKILLS Logical reasoning, judgment, analytical abilities EMOTIONAL INTELLIGENCE Self-awareness, self-regulation, motivation, empathy and social skill SOCIAL INTELLIGENCE Ability to “read” other people Adapted from Exhibit 9.9

22. Task Behaviors Specifies roles and tasks Schedules work Sets performance standards Develops procedures People Behaviors Is friendly Is supportive Shows trust and confidence in subordinates Shows concern for subordinates’ welfare Gives recognition to subordinates for accomplishments Leaders’ Behaviors Adapted from Exhibit 9.10

23. Leadership Approaches Approaches Based on Leaders’ Behavior BLAKE & MOUTON: MANAGERIAL GRID Best managers are both task- and people-oriented TRANSFORMATIONAL LEADERSHIP Leaders who inspire followers to make major changes or to achieve at very high levels TRANSACTIONAL LEADERSHIP Emphasizes the exchange of rewards for followers’ compliance AUTHENTIC LEADERSHIP Model self-awareness and regulation and motivate followers to act more authentically too

24. 9 High 8 7 6 5 4 3 2 Low 1 7 1 2 3 4 5 6 8 9 Low High Managerial Grid • Focuses on two leadership behaviors: concern for people and concern for results • Leaders can be • High in both • Low in both • In the middle on both • High in one, low in the other Good Leaders Mediocre Leaders Concern for People Poor Leaders Concern for Results

25. Transformational Leadership Transformational leaders • Empower and coach followers • Motivate followers to: • Ignore self-interest • Work for the larger good of the organization • Achieve significant accomplishments • Make major changes

26. Transactional Leadership Transactional leadership • Is more passive • Emphasizes exchange or rewards or benefits for compliance with leader’s requests • Appeals to followers’ self-interests to motivate their performance

27. Transformational Versus Transactional Leadership Leader gains subordinates’ compliance by: Transformational Leadership Transactional Leadership Inspiring, empowering, and coaching followers Exchange of rewards and benefits Organizational and “common good” interests Self-interest Appeals focus on: Type of planned change: Major organizational change Routine changes Adapted from Exhibit 9.11 Adapted from Exhibit 11.11: Transformation versus Transactional Leadership

28. Guidelines for Transformational Leadership • Develop a clear and appealing vision • Develop a strategy for attaining the vision • Articulate and promote the vision • Act confident and optimistic • Express confidence in followers • Use early success in small steps to build confidence • Celebrate successes • Use dramatic, symbolic actions to emphasize key values • Lead by example Adapted from Exhibit 9.12

29. Followers’ Behaviors Important points about followers: • They may be as informed as leaders • They may share power with leaders • Usually have lower formal authority, though power differences have decreased • They affect the leader’s style and success

30. Leadership Approaches Approaches Based on Followers’ Behavior HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP MODEL Focuses followers’ “readiness” to engage in learning new tasks LEADER-MEMBER EXCHANGE THEORY Focuses on types of relationships between a leader and a follower

31. Situational Leadership Model • Leadership behaviors depend on “readiness” of followers • Ability in a specific task • Motivation to undertake the new task • Leadership behaviors • Supportiveness (people orientation) • Directiveness (task orientation)

32. Leader-Member Exchange Theory • Quality of the leader-member relationship can influence behavior of subordinates • Leader should build strong, mutually beneficial relationship • Relationship goes through stages: • Stranger • Acquaintance • Maturity

33. Leader-Member Relationships Relationship characteristics Relationship stage Stranger Acquaintance Maturity Relationship- building phase Quality of leader- member exchange Amounts of reciprocal Influence Focus of interest Role- Finding Low None Self Role- Making Medium Limited Role- Implementation High Almost Unlimited Team Time Adapted from Exhibit 9.13

34. The Situation Situational variables affecting leadership are: • Tasks to be performed • If task changes, leadership style changes • Unstructured task done by experts  supportive leadership • Structured task done by inexperienced people  directive leadership • Organizational context • Immediate work group + larger organization • Organizational culture dictates leadership style

35. Leadership Approaches Approaches Based on Situation FIEDLER: CONTINTENCY LEADERSHIP MODEL Focuses on type of leader and the degree of favorability of the situation HOUSE: PATH-GOAL THEORY Use leadership approach based on both subordinate skills and situation

36. Leadership Contingency Theory Premise: Leadership effectiveness depends on 1) favorability of situation and 2) type of leader • FAVORABLE SITUATION • Good subordinate relationships • Highly structured task • High amount of position power • UNFAVORABLE SITUATION • Poor subordinate relationships • Unstructured task • Leader lacks position power • TASK-ORIENTED LEADERS • Do best when the situation is either: • Highly favorable, or • Highly unfavorable • PEOPLE-ORIENTED LEADERS • Do best when the situation is either: • Moderately favorable, or • Moderately unfavorable

37. Path-Goal Theory • Leader’s job is to increase subordinate satisfaction and effort • Assumes that: • One leadership approach will work better in some task situations than others • Leaders can modify their styles to suit the situation • Two basic leadership behaviors: • Supportive • Directive

38. Path-Goal Theory IF The task is: Frustrating, boring, stressful, structured, and routine Supportive Leadership Style (Person oriented) AND Subordinates are: Highly experienced and competent Goal (i.e., increased performance) IF The task is: Interesting but ambiguous, nonstressful, unstructured, varied Directive Leadership Style (Task oriented) AND Subordinates are: inexperienced Adapted from Exhibit 9.14

39. Substitutes for Leadership Adapted from Exhibit 9.14 Adapted from Exhibit 5.2: Factors of Moral Intensity