Week 14 – Leadership

1. Principles of Management Week 14 – Leadership

2. Definition • What is a leader? • A leader is someone who can influence others and has managerial authority • 7 theories of leadership

3. Organizational leadership

4. Establish organizational mission Formulate strategy for implementing that mission Increase people’s commitment and effort toward the mission and strategy Implement organizational strategy through others Manager’s role Leader’s role Leaders Versus Managers Leaders - primary functionis to create the essential purpose or mission; cope with change Managers - primary function is to implement the leader’s vision - create plans and monitor results Distinguishing Leader’s and Manager’s Roles

5. What is Leadership?

6. Trait Theories 1 • What are the characteristics that differentiate leaders from nonleaders? • Drive to succeed • Desire to lead • Honesty and integrity • Self-confidence • Intelligence • Job relevant knowledge • Extraversion • Limited support

7. Behavioral Theories 2 • What do leaders do? • University of Iowa Studies • Autocratic, democratic, & lassez-faire leader • Democratic style seems to relate to subordinates’ job satisfaction • The Ohio State Studies • Initiating structure (defining roles for subordinates) • Consideration (trusting & respect subordinates) • University of Michigan Studies • Employee-oriented • Production-oriented (accomplishing goals)

8. Person-Oriented and Production-Oriented Leaders High Consideration Low High Initiating Structure Low Behavioral Theories 2 Low concern for production and High concern for people High concern for production and High concern for people Low concern for production and Low concern for people High concern for production and Low concern for people

9. LPC Fiedler Contingency Model 3 • Effective leadership requires a match between leader’s style of interaction and the situation Leader’s style • Relationship-oriented (High LPC) vs. Task-oriented (Low LPC) • Least-preferred coworker questionnaire • http://oak.cats.ohiou.edu/~sa165699/esp/page03.htm Situation • Leader-member relations (members’ trust & confidence?) • task structure (subordinates’ jobs formalized?) • position power (supervisor has how much power?)

10. LPC Fiedler Contingency Model 3 • Assumptions: • A certain leadership style should be most effective in different types of situations. • Leaders do not readily change leadership styles. • Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

11. Findings of the Fiedler Model

12. Path-Goal Model 4 • A leader’s job is to assist his or her followers in attaining their goals and to provide direction or support to ensure their goals are compatible with organizational goals. • Directive leader • Supportive leader • Participative leader • Achievement oriented leader

13. Path-Goal Theory

14. Leader Out-Group In-Group Raised Morale, Commitment, and Job Performance Lowered Morale, Commitment, and Job Performance Leader-Member Exchange Model (LMX) 5 Leaders form different relations with various subordinates and the nature of such dyadic exchanges can affect subordinates’ performance and satisfaction In-group - receive inflated performance ratings, have positive job attitudes, and less likely to resign from their jobs Out-group - subordinates disfavored by leaders

15. Transactional vs. Transformational leadership 6 • Transactional leaders • Guide or motivate their followers in the direction of established goals by clarifying role and task requirements • Like making a transaction with the subordinate • Transformational leaders • Transforming followers by inspiring them to put out extra effort to achieve group goals • Provide individualized consideration and intellectual stimulation • Possesses charisma

16. Charismatic (charming) Leadership 7 • An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways • More specifically, 5 attributes • Vision, articulate the vision, willing to take risks to achieve that vision, sensitive to envt constraints and followers’ needs, and exhibit behaviors that are out of ordinary • Charismatic leaders can be trained

17. “I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character” • Vision • (e.g., Dr. Martin Luther King – racial equality) • Articulate the vision • (e.g., I envision a playground where children of all races are playing harmoniously) • Willing to take risks to achieve that vision • Demonstrates commitment to the vision to subordinates • Sensitive to envt constraints and followers’ needs • Demonstrates awareness of factors that affect the likelihood of achieving the vision • Exhibit behaviors that are out of ordinary • Followers think that you are special & unique

18. Cross-Cultural Leadership • Universal Elements of Effective Leadership • Vision • Foresight • Providing encouragement • Trustworthiness • Dynamism • Positiveness • Proactiveness

19. Selected Cross-Cultural Leadership Findings • Korean leaders are expected to be paternalistic toward employees. • Arab leaders who show kindness or generosity without being asked to do so are seen by other Arabs as weak. • Japanese leaders are expected to be humble and speak frequently. • Scandinavian and Dutch leaders who single out individuals with public praise are likely to embarrass, not energize, those individuals. • Effective leaders in Malaysia are expected to show compassion while using more of an autocratic than a participative style. • Effective German leaders are characterized by high performance orientation, low compassion, low self-protection, low team orientation, high autonomy, and high participation.