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Chapter 15

Chapter 15. Leadership. What Would You Do? Leadership at Microsoft. Growing bureaucracy Where is the company going? What makes a good leader? How should leaders behave?. Learning Objectives What is Leadership?. explain what leadership is

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Chapter 15

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  1. Chapter 15 Leadership

  2. What Would You Do?Leadership at Microsoft • Growing bureaucracy • Where is the company going? • What makes a good leader? • How should leaders behave?

  3. Learning ObjectivesWhat is Leadership? • explain whatleadership is • describe who leaders are and what effective leaders do After discussing this section, you should be able to:

  4. Leadership Leaders versus Managers Substitutes for Leadership

  5. Managers versus Leaders Managers Leaders • Do things right • Status quo • Short-term • Means • Builders • Problem solving • Do the right thing • Change • Long-term • Ends • Architects • Inspiring & motivating

  6. Substitutes for Leadership: Do Leaders Always Matter? • Leadership substitutes • subordinate, task, or organizational characteristics • make leaders redundant or unnecessary • Leadership neutralizers • subordinate, task, or organizational characteristics • interfere with a leader’s actions • Leaders don’t always matter

  7. Leadership Substitutes & Neutralizers Adapted Table 15.1

  8. Who Leaders Are and What Leaders Do Leadership Behaviors Leadership Traits

  9. Drive Leadership Traits Desire to Lead Self- confidence Honesty/ Integrity Knowledge of the Business Emotional Stability Cognitive Ability

  10. What Really Works? Traits & Perceptions of Leadership Effectiveness Intelligence 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 75% Dominance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 57% Extroversion 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 63%

  11. What Really Works? (cont’d) Charisma & Leadership Effectiveness Performance & Charisma 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 72% Charisma & Perceived Leader Effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 89% Charisma & Leader Satisfaction 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 90%

  12. Leadership Behaviors • Initiating structure • clarifies follower roles and duties • job-centered or concern for production • Consideration • creating a supportive environment • employee-centered or concern for people

  13. Behavioral Theories

  14. 9 8 7 6 5 4 3 2 1 1,9 Country Club Management Thoughtful attention to needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere & work tempo. 9,9 Team Management Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust & respect. High 5,5 Middle of the Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. Concern for People 9,1 Authority-Compliance Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 1,1 Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. Low 1 2 3 4 5 6 7 8 9 Concern for Production Low High Blake/Mouton LeadershipGrid Adopted from Figure 15.2

  15. Learning ObjectivesSituational Leadership After discussing this section, you should be able to: • explain Fiedler’s contingency theory. • describe how path-goal theory works. • discuss Hersey & Blanchard’s situational theory. • use the normative decision model when deciding just how you will make decisions as a leader.

  16. Putting Leaders in the Right Situtation: Fiedler’s Contingency Theory Leadership Style: Least Preferred Co-worker Situational Favorableness Matching Leadership Styles to Situations

  17. Situational Favorableness Leadership Style Fiedler’s Contingency Theory Group Performance =

  18. Leadership Style: Least Preferred Co-Worker • Leadership style is the way a leader generally behaves towards followers • stable and difficult to change • Measured by the Least Preferred Co-worker scale • relationship-oriented • task-oriented

  19. Situational Favorableness • How a particular situation affects a leader’s ability to lead • Three factors • Leader-member relations • Task structure • Position power

  20. Situational Favorableness Adapted From Figure 15.5

  21. Task- Oriented Leaders Good Relationship- Oriented Leaders Bad Matching Leadership Styles to Situations Adapted From Figure 15.6

  22. Adapting Leader Behavior: Path-Goal Theory Four Leadership Styles Subordinate and Environmental Contingencies

  23. Path-Goal Theory • Subordinate Contingencies • Perceived Ability • Locus of Control • Experience • Outcomes • Subordinate Satisfaction • Subordinate Performance • Leadership Styles • Directive • Supportive • Participative • Achievement-Oriented • Environmental Contingencies • Task Structure • Formal Authority System • Primary Work Group Adapted From Figure 15.7

  24. Leadership Styles • Directive • clarifying expectations and guidelines • Supportive • being friendly and approachable • Participative • allowing input on decisions • Achievement-Oriented • setting challenging goals

  25. Subordinate Perceived ability Locus of control Experience Environmental Task structure Formal authority system Primary work group Subordinate & Environmental Contingencies

  26. When to Use Each of the Four Leadership Styles

  27. Adapting Leader Behavior: Hersey & Blanchard’s Situational Theory Worker Maturity Leadership Styles

  28. Worker Maturity • Ability and willingness to take responsibility for one’s own work behavior • Job maturity • amount of knowledge, skill, ability, and experience people possess • Psychological maturity • a person’s feeling of self-confidence or self-respect

  29. Telling high task & low relationship one-way communication Selling high task and high relationship two-way communication and psychological support Participating low task and high relationship two-way communication and shared decision making Delegating low task and low relationship employees on their own Leadership Styles

  30. Adapting Leader Behavior: Normative Decision Theory Decision Styles Decision Quality and Acceptance

  31. Decision Styles Style Explanation AI - Autocratic Solve the problem yourself using the information you have. AII - Less autocratic Obtain the needed information from workers; then solve the problem yourself. Workers provide information but not alternatives. C1- Consultative Share the problem with workers individually (but not as a group), seeking suggestions & possible alternatives. Solve the problem yourself. CII - More consultative Share the problem with workers as a group, seeking suggestions & possible alternatives. Solve yourself. GII - Group decision Share the problem with workers as a group, seeking suggestions & possible alternatives. Attempt to reach a consensus & be willing to accept & implement the workers’ solution.

  32. Decision Quality and Acceptance • Using the right amount of employee participation: • improves decision quality • improves acceptance • Decision tree helps leader identify optimal level of participation

  33. Quality Rule If the quality of the decision is important, then don't use an autocratic decision style Leader Information Rule If the quality of the decision is important, and if the leader doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style Subordinate Information Rule If the quality of the decision is important, and if the subordinates don't have enough information to make the decision themselves, then don't use a group decision style Decision Rules to Increase Decision Quality

  34. Decision Rules to Increase Decision Quality (cont’d) • Goal Congruence Rule • If the quality of the decision is important, and subordinates' goals are different from the organization's goals, then don't use a group decision style • Problem Structure Rule • If the quality of the decision is important, the leader doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style

  35. Decision Rules to Increase Decision Acceptance • Commitment Probability Rule • If having subordinates accept and commit to the decision is important, then don't use an autocratic decision style • Subordinate Conflict Rule • If having subordinates accept the decision is important and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style

  36. Decision Rules to Increase Decision Acceptance (cont’d) • Commitment Requirement Rule • If having subordinates accept the decision is absolutely required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style

  37. The Decision Tree N AI Y AI Y N N GII N AI Y GII AI Y Y Y Y N CII N Y N Y Y CI Y N N N AII AII Y N Y CII N Y GII N CII N CII Adapted From Figure 15.9

  38. Learning ObjectivesStrategic Leadership • explain how visionary leadership (i.e. charismatic and transformational leadership) helps leaders achieve strategic leadership. After discussing this section, you should be able to:

  39. Visionary Leadership Charismatic Leadership Transformational Leadership

  40. Charismatic Leadership • Creates an exceptionally strong relationship between leader and follower • Lead by: • articulating a clear vision, based on values • role modeling values • communicating high performance expectations • displaying confidence in followers

  41. Types of Charismatic Leaders • Ethical Charismatics • provide developmental opportunities • recognize follower contributions • concerned with the interests of the group • Unethical Charismatics • control and manipulate followers • want positive feedback • motivated by self-interest

  42. Transformational Leadership • Generates awareness and acceptance of group’s purpose and mission • Gets employees to see beyond their own needs and self-interest • Goes beyond charismatic leadership • Different than transactional leadership

  43. Transformational Leadership Components • Charismatic leadership/idealized influence • Inspirational motivation • Intellectual stimulation • Individualized consideration

  44. What Really Happened?Leadership at Microsoft • Balmer “mellows-out” • Exhibits more considerate behaviors • Becoming a “leader of leaders” • Strategy and vision are important

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