CHAPTER 13

1. CHAPTER 13 Leading in a Dynamic Environment

2. Learning Objectives slide 1 of 2 • Define leadership and explain its significance to an organization. • Differentiate between the different leader-centered approaches to leadership. • Describe the various types of power leaders use. • Explain what is meant by self-leadership and why it is important to the organization. • Characterize how leadership substitutes work.

3. Learning Objectives slide 2 of 2 • Identify and define the variables in the situational leadership model. • Clarify how empowerment can increase the power and autonomy of organizational members. • Explain transformational leadership. • Discuss the changing role of women as leaders.

4. The Significance of Leadership • Leadership is a social influence process. • Leadership isn’t a position, title, or privilege, it is a responsibility and a process. • Leadership is an observable, understandable, learnable set of skills and practices available to everyone, anywhere in the organization. • Leadership is the indirect ability to influence people by inspiring them to pursue goals for the benefit of the organization.

5. Leadership and Vision • Leadership involves: • Creating a vision of the future. • Devising strategy for achieve that vision. • Communicating the vision so that everyone understands and believes in it.

6. Leader-Centered Approaches • Leader-centered approaches focus on traits, leader behaviors, and power. • They include: • Trait focus • Behavior focus • Power focus

7. Trait Focus Approach • The trait focus approach assumes that some people are endowed with certain characteristics making them effective leaders. • Physical characteristics (such as height and appearance) • Personality (such as self-esteem, dominance and emotional stability) • Aptitudes (general intelligence, verbal fluency and creativity)

8. Traits of Successful Leaders • Drive • Achievement, sense of responsibility, ambition, energy, tenacity and initiative. • Motivation • Especially power. • Honesty and integrity • Self confidence • Persuasive, diplomatic and socially skilled. • Conceptual ability • Business knowledge

9. Leader-Centered Approaches • Leader-centered approaches focus on traits, leader behaviors, and power. • They include: • Trait focus • Behavior focus • Power focus

10. Behavior Focus • Examines what effective leaders do rather than what effective leaders are. • Behavioral models define a leader’s effectiveness based on two orientations: • Task orientation: Setting performance goals, planning and scheduling work, coordinating activities, giving directions, setting standards, providing resources, and supervising performance. • Relations orientation: Behavior that shows empathy for concerns and feelings, supportive of needs, showing trust, and similar attributes.

11. Leadership Behaviors • Effective leaders use a range of behaviors. • These behaviors can be learned. • An important characteristic of effective leaders is their ability change and adapt to organizational settings in which they manage.

12. Leader-Centered Approaches • Leader-centered approaches focus on traits, leader behaviors, and power. • They include: • Trait focus • Behavior focus • Power focus

13. Power Focus • Power • The ability to use human, informational, or material resources to get something done. • The ability to get results. • Authority • The officially sanctioned right to get something done.

14. Two Categories of Power • Position power • Power derived from the opportunities inherent in a person’s position in an organization. • Personal power • Power derived from the interpersonal relationships between leaders and followers.

15. Position Power • Legitimate power • Stems from formal authority. • Coercive power • The power to discipline, punish and withhold rewards. • Reward power • Control over tangible benefits such as a promotion, a better job, a better work schedule, a larger operating budget, and increased expense account. • Information power • Control over information.

16. Personal Power • Expert power • The power influence another person because of expert knowledge and competence. • Referent power • The ability to influence others based on personal liking, charisma and reputation.

17. 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.

18. Follower-Centered Approaches • Leader-centered approaches are used to identify traits of behaviors leaders use to be effective but is focused only on the leader in isolation. • Self-leadership focus: Sometimes referred to as followership, is a paradigm founded on creating an organization of leaders who are ready to lead themselves. • Leadership substitutes: Variables such as individual, task and organizational characteristics.

19. Characteristics of Self-Leaders slide 1 of 2 • The capacity to motivate themselves and stay focused on tasks. • Integrity that demands both loyalty to the organization and the willingness to act according to beliefs. • Understanding of the organization and their contributions to it. • Willingness to take the initiative to deal with problems.

20. Characteristics of Self-Leaders slide 2 of 2 • Versatility, skillfulness and flexibility to adapt to a changing environment. • Responsibility for their careers, actions and development.

21. Leadership Substitutes • Variables such as individual, task, and organizational characteristics that tend to outweigh the leader’s ability to affect subordinate satisfaction and performance. • These are known as neutralizers. • A neutralizers is a condition that counteracts leader behavior and/or prevents the leader from having an effect on a follower or a specific situation.

22. Leadership Substitutes Individual Characteristics Task Characteristics Organizational Characteristics • Experience • Training • Ability • Professional orientation • Indifference to organizational rewards • Degree of intrinsic satisfaction • Degree of repetitiveness • Degree of structure or feedback • Degree of formality • Degree of flexibility • Amount of cohesiveness • Independence of reward structure • Degree of spatial distance from manager

23. 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

24. Situational Leadership Model slide 1 or 2 • Examines the interaction between leadership behavior, the situation, and the follower’s 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.

25. Situational Leadership Model slide 2 or 2 • 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 subordinates with few task or relations behaviors.

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

27. Transformational Leadership • A leader’s ability to influence employees to achieve more than was originally expected, or thought possible. • Transformational leaders are able to generate feelings of trust, admiration, loyalty and respect from followers. • There are four primary dimensions: • Idealized influence • Inspirational motivation • Intellectual stimulation • Individualized considerations

28. Primary Dimensionsof Transformational Leadership slide 1 of 2

29. Primary Dimensionsof Transformational Leadership slide 2 of 2

30. A New Model of Leadership • The Three C’s Model • Competence • Character • Community

31. Competence • Leaders need to have knowledge about how organizations work. • They need to know how to develop a vision and mission that not only is correct for the industry but one that also is inspiring to the people in the organization. • They need to know how to analyze financial statements and how to make sure the organization does achieve its strategy. • Leaders need to know how to interact with people. They need to know how to communicate well and understand what influences people.

32. Character • Character refers to the leadership values and behaviors that are essential for an organization to achieve its mission. • Trust • Commitment • Followership

33. Community • The result of competency and character will be a vibrant, healthy community within the organization • The concept of community applied outside of the organization will build strong positive ties between the organization and its external community. • Customers • Employees • Overall healthy economic conditions

34. Women as Leaders • The number of women in leadership positions has increased steadily since 1970. • Women are 51 percent of the population but occupy only slightly over 25 percent of the supervisory positions in U.S. industry. • Women occupy just 11 percent of senior executive positions in Fortune 500 companies.

35. Implications for Leaders: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. • Do not avoid risks. • Believe in yourself. • Take the offense rather than the defense.

36. Implications for Leaders:Leadership Effectiveness slide 2 of 2 • Know the ways of disagreement and the means of compromise. • Be a good follower.