Management

1. Management Leadership

2. Useful vocabulary • leader • leadership • trait • behavioural theories • autocratic style • democratic style • laissez-faire style • initiating structure • consideration • managerial grid • Fiedler contingency model • leader-member relations • task structure • position power • situational leadership theory (SLT) • leader participation model • path-goal theory • transactional leaders • transformational leaders

3. Today’s lecture We will: • Define leader and leadership • Compare and contrast early theories of leadership • Describe the three major contingency theories of leadership • Describe contemporary views of leadership • Discuss contemporary issues affecting leadership

4. Who are leaders and what is leadership? • Leader - Someone who can influence others and who has managerial authority. • Leadership - What leaders do; the process of influencing a group to achieve goals. • Ideally, all managers should be leaders.

5. Leadership and management Leadership • The ability to influence a group toward the achievement of goals Management • Use of authority inherent in designated formal rank to obtain compliance from organisational members Both are necessary for organisational success

6. Are leaders born or made? • Trait theory: leadership is inherent, so we must identify the leader based on his or her traits • Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders

7. What qualities should a leader have? • What qualities do you think are essential in a good leader? • Think about leaders you know and respect. • What is a follower?

8. Early leadership theories Trait and Behavioural theories

9. Early leadership theories (1) • Trait Theories (1920s -1930s) • Research focused on identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful. • Later research on the leadership process identified seven traits associated with successful leadership: • Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion

10. Seven leadership traits

11. Kurt Lewin – Iowa studies • University of Iowa Studies (Kurt Lewin) • Identified three leadership styles: • Autocratic style: centralized authority, low employee participation • Democratic style: involvement, high employee participation, feedback • Laissez faire style: hands-off management, group make decisions • Research findings: mixed results • No specific style was consistently better for producing better performance. • Employees were more satisfied under a democratic leader than under an autocratic leader.

12. Ohio State studies • Ohio State Studies • Identified two dimensions of leader behaviour: • Initiating structure: the role of the leader in defining his or her role and the roles of group members. • Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings.

13. Ohio State research results • High consideration/high structure leaders generally, but not always, achieved high scores on group task performance and satisfaction. • Evidence indicated that situational factors appeared to strongly influence leadership effectiveness.

14. Michigan studies University of Michigan • Identified two dimensions of leader behaviour: • Employee oriented: emphasising personal relationships • Production oriented: emphasising task accomplishment • Research findings: • Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction.

15. Managerial grid (1) • The Managerial Grid • Appraises leadership styles using two dimensions: • Concern for people • Concern for production • Team management considered best style of leadership but little evidence to back this up

16. Managerial grid (2) Places managerial styles in five categories: • Impoverished management (1,1 - low concern for production, low concern for people) • Task management (9,1 – high concern for production, low concern for people) • Middle-of-the-road management (5,5 – medium concern for production, medium concern for people) • Country club management (1,9 – low concern for production, high concern for people) • Team management (9,9 – high concern for production, high concern for people)

17. Behavioural theories diagram 1

18. Behavioural theories diagram 2

19. Early leadership theories Contingency theories

20. Contingency theory of leadership • While trait and behavior theories do help us understand leadership, an important component is missing: the environment in which the leader exists • Contingency theory adds this additional aspect to our understanding leadership effectiveness studies • Four key theories: • Fiedler’s Model • Situational Leadership Theory • Path-Goal Theory • Leader Participation

21. Contingency Theories of Leadership • The Fiedler Model • Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence.

22. Fiedler Model • Assumes that leadership style is fixed • For effective leadership: must change to a leader who fits the situation or change the situational variables to fit the current leader • Considers three situational factors: • Leader-member relations: degree of confidence and trust in the leader • Task structure: degree of structure in the jobs • Position power: leader’s ability to hire, fire, and reward

23. The Fiedler Model (cont.) • Least-preferred co-worker (LPC) questionnaire • Determines leadership style by measuring responses to 18 pairs of contrasting adjectives • If you got a high score, you have a relationship-oriented leadership style • If you got a low score, you have a task-oriented leadership style • This combined with the three situational factors, created a model with situations that are favourableor unfavourable for that type of manager.

24. The Fiedler Model

25. The Fiedler model As leadership type is fixed in this model, if a situation is unfavourable for a leader, the only 2 options are: • get another leader • change the situation Criticisms of this model: • Leaders can change style • LPC not practical

26. Situational leadership theory • Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness • Acceptance: leadership effectiveness depends on whether followers accept or reject a leader • Readiness: the extent to which followers have the ability and willingness to accomplish a specific task • Leaders must relinquish control over and contact with followers as they become more competent.

27. Situational leadership theory • Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions: • Telling: high task-low relationship leadership • Selling: high task-high relationship leadership • Participating: low task-high relationship leadership • Delegating: low task-low relationship leadership

28. Situational leadership theory • Followers can accept or reject the leader • Effectiveness depends on the followers’ response to the leader’s actions • “Readiness” is the extent to which people have the ability and willingness to accomplish a specific task

29. Path-Goal Theory • Leaders provide followers with information, support, and resources to help them achieve their goals • Leaders help clarify the “path” to the worker’s goals • Leaders can display multiple leadership types Four types of leaders: • Directive: focuses on the work to be done • Supportive: focuses on the well-being of the worker • Participative: consults with employees in decision making • Achievement-Oriented: sets challenging goals

30. Path-Goal model (p468)

31. Contemporary theories

32. Comtemporary leadership theories There are many but we will look at: • Transactional • Transformational • Charismatic • Visionary • Team

33. Transactional and transformational leaders • Transactional Leadership • Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. • Transformational Leadership • Leaders who inspire followers to transcend their own self-interests for the good of the organisation by clarifying role and task requirements.

34. Charismatic leaders Charismatic leadership • An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways. • Characteristics of charismatic leaders: • Have a vision • Are able to articulate the vision • Are willing to take risks to achieve the vision • Are sensitive to the environment and follower needs • Exhibit behaviours that are out of the ordinary

35. Charismatic leaders influence by…

36. Visionary leaders • Visionary leadership • A leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation. • Visionary leaders have the ability to: • Explain the vision to others • Express the vision not just verbally but through behaviour • Extend or apply the vision to different leadership contexts

37. Charismatic or visionary leaders • List as many charismatic or visionary leaders as you can. • Is there a pattern to the situations they appear in? If yes, what is it?

38. Team leaders • Team leadership characteristics: • Having patience to share information • Being able to trust others and to give up authority • Understanding when to intervene • Team leader’s job • Managing the team’s external boundary • Facilitating the team process which includescoaching, facilitating, handling disciplinary problems, reviewing team and individual performance, training, and communication

39. Team leadership roles diagram

40. Leadership for 21st Century

41. What style of leader are you? • Look at your Myers-Briggs and your Belbin results • Think about your experiences of when you have taken the lead in an activity • What style of leadership suits you best?

42. Managing Power • Legitimate power • The power a leader has as a result of his or her position. • Coercive power • The power a leader has to punish or control. • Reward power • The power to give positive benefits or rewards. • Expert power • The influence a leader can exert as a result of his or her expertise, skills, or knowledge. • Referent power • The power of a leader that arises because of a person’s desirable resources or admired personal traits.

43. Trust • Trust is a psychological state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out.

44. Developing trust • Credibility (of a leader) • The assessment of a leader’s honesty, competence, and ability to inspire by his or her followers • Trust • The belief of followers (and others) in the integrity, character, and ability of a leader • Is related to increases in job performance, organisational citizenship behaviours, job satisfaction, and organisation commitment

45. How is trust developed? If you want people to trust you, you need demonstrate: • Integrity • Competence • Consistency • Loyalty • Openness

46. How to build trust

47. Empowering employees Empowerment • Increasing the decision-making discretion of workers such that teams can make key operating decisions in developing budgets, scheduling workloads, controlling inventories, and solving quality problems.

48. Why empower employees? • Quicker responses to problems and faster decisions • Addresses the problem of increased spans of control in relieving managers so they can address other problems

49. Other factors • Authenticity • Authentic leaders know who they are, what they believe in and value, and act upon those values and beliefs. • Ethics • Leadership is not free from values. When we assess leadership, we must assess not just the goals themselves but also the means by which those goals are achieved.

50. Cross-cultural leadership • Universal elements of effective leadership • Vision • Foresight • Providing encouragement • Trustworthiness • Dynamism • Positivity • Pro-activeness