Chapter 17: Leadership

1. Chapter 17:Leadership

2. Chapter Objectives • Definition of leadership • Difference between leaders and managers • Sources of power • Evolution of leadership theories • Behavioral theories • Situational theories • Cutting-edge approaches to leadership • Becoming an effective leader

3. Before We Begin… • What famous leaders can you think of?

4. Adventure Neil Armstrong Amelia Earhardt Wright Brothers Political Winston Churchil Ben Franklin Thomas Jefferson John Kennedy Nelson Mandella Martin Luther King Science Albert Einstein Spiritual Daili Lama Mother Teresa Sports Muhammud Ali Michael Jordan John Wooden Tiger Woods Examples of Leaders from Various Fields

5. 2004 World's Most Respected Leaders(according to PriceWaterhouse Coopers & Financial Times study) • Bill Gates (Microsoft) • Jack Welch (GE) • Carlos Ghosn (Nissan) • Warren Buffett (Berkshire Hathaway) • Michael Dell (Dell Computer) • Hiroshi Okuda (Toyota) • Jeff Immelt (GE) • Carly Fiorina (HP) • Steve Jobs (Apple) • Fujio Mitarai (Canon) According to the survey, the qualities most often cited in successful business leaders are: leadership, motivation, genius, inspiration, vision, innovation and boosting shareholder value.

6. Questions About Leadership • What is leadership? • What’s the difference between managers and leaders? • Should all managers be leaders? • Should all leaders be managers?

7. ManagersVersus Leaders Managers Leaders • Appointed • Have formal authority • Ability to influence based on formal authority • Can be appointed or emerge • Ability to influence goes beyond formal authority

8. Sources of Power Legitimate Coercive Reward Expert Referent Which do leaders use?

9. = Leaders = Managers = Managers & Leaders Relationship Between Managers & Leaders 4

10. Evolution of Leadership Theories • Honesty • Integrity • Confidence • Intelligence Trait Behavioral Situational • Autocratic (task) • Democratic (people) • Numerous variables!

11. Seven Traits Associated with Leadership • Drive • Desire to lead • Honesty and integrity • Self-confidence • Intelligence • Job-relevant knowledge • Extraversion

12. Behavioral Theories of Leadership 1) Autocratic 2) Democratic 3) Laissez-faire 1) Initiation 2) Consideration 1) Production-oriented 2) Employee-oriented 1) Concern for production 2) Concern for people Kurt Lewin (University of Iowa) Ohio State University of Michigan Managerial Grid

13. The Managerial Grid Exhibit 17.3

14. Fiedler Model Variables Task-oriented Leadership Style (fixed) Relationship-oriented G Leader-member relations P H Task structure Situation L Position power S W

15. Findings of the Fiedler Model Exhibit 17.4

16. Leadership Participation Model • Says leader’s DM style should be based on various contingencies: • Decision significance • Importance of commitment • Leader expertise • Likelihood of commitment • Group support • Group expertise • Team competence

17. Leadership Decision-Making Styles • Decide: Leader makes the decision alone and either announces or sells it to group. • Consult Individually: Leader presents the problem to group members individually, gets their suggestions, and then makes the decision. • Consult Group: Leader presents the problem to group members in a meeting, gets their suggestions, and then makes the decision. • Facilitate: Leader presents the problem to the group in a meeting and, acting as facilitator, defines the problem and the boundaries within which a decision must be made. • Delegate: Leader permits the group to make the decision within prescribed limits. Exhibit 17.6

18. Leader Participation Model Source:Adapted from V. Vroom, “Leadership and the Decision-Making Process,” Organizational Dynamics, vol. 28, no. 4 (2000), p. 87. Exhibit 17.7

19. Path-Goal Theory Environmental contingency factors • Task structure • Formal authority system • Work group Leader behavior Outcomes • Directive • Supportive • Participative • Achievement- • oriented • Performance • Satisfaction Subordinate contingency factors • Locus of control • Experience • Perceived ability

20. Examples of Hypotheses from Path-Goal Theory • When tasks are ambiguous and stressful, subordinates will prefer directive leadership; when tasks are highly-structured and well-laid out, subordinates will prefer supportive leadership • When subordinates have high ability and considerable experience, directive leadership will be perceived as redundant • Subordinates with an internal locus of control will be more satisfied with a participate style

21. Factors that Affect Choice of Leadership Style • Relationship between leader and subordinates • Position power • Leader’s information • Subordinates’ info • Task structure • Dynamics of work group • Importance of subordinate commitment • Subordinate’s locus of control • Subordinate’s experience • Subordinate’s ability • Relationship between leaders and subordinates

22. Summary of Contingency Models of Leadership

23. Other Types of Leadership Visionary Charismatic Transformational Team

24. What is a Visionary Leader? • Someone who can create and articulate a realistic, credible, and attractive vision of the future that improves on the present situation

25. What is a Charismatic Leader? • An enthusiastic, self-confident leader whose strong personality and actions influence people to behave in certain ways. Often visionary. Will often take risks to achieve vision, and exhibit behavior that is out of the ordinary.

26. What is a Transformational Leader? • Someone Who: • Inspires others to transcend their own self-interests and work for the larger good of the organization. • Articulates a vision that convinces subordinates to make major changes. • Possesses charisma. • Can have a profound belief on followers’ beliefs and values – actually change you (goes beyond charisma)

27. Examples of Transformational Leaders • Bill Gates (Microsoft) • Steve Jobs (Apple) • Michael Dell (Dell Computer) • Jeff Bezos (Amazon.com) • Lou Gerstner (IBM) • Jack Welch (GE)

28. Can Leadership Be Taught? • Leadership training is big business! • Most successful with high “self-monitors” • Highly motivated individuals more successful at leadership training • People can be taught how to: • Be “charismatic” (eye contact, gesture, voice) • Analyze situations and learn about different leadership styles • Implement • Build trust • Mentor • But hard to “teach”: • Visioning, strong personality, passion, walk the talk, risk-taking

29. A Delicate Situation • You are the new manager of customer service operations at Preferred Bank Card, Inc., a credit card issuer with offices throughout California. Your predecessor, who was very popular with the customer service representatives and who is still with the company, concealed from your team how far behind they are on their goals this quarter. As a result, your team members are looking forward to a promised day off that they are not entitled to and will not be getting. It’s your job to tell them the bad news. How will you do it? • Form small groups of no more than four people. Discuss this situation and how you would handle it. Then, create a role-playing situation that illustrates your group’s proposed approach. Be ready to do your role play in front of the class. Also, be prepared to provide the rest of the class with the specific steps that your group suggested be used in this situation.