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Leadership in Organizational Settings

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					C H A P T E R: F O U R T E E N



                 Leadership in
                 Organizational
                 Settings


                                 14
Leadership at Lakeport Beverages

                                              Teresa Cascioli’s
                                              leadership has
                                              transformed Hamilton-
                                              based Lakeport Beverage
                                              Corp. into a major
                                              competitor in Ontario’s
                                              take-home beer market.

       Courtesy of Lakeport Beverages Corp.




                                         2
What is Leadership?

                                             Leadership is the ability
                                             to influence, motivate,
                                             and enable others to
                                             contribute toward the
                                             effectiveness of the
                                             organizations of which
                                             they are members.

      Courtesy of Lakeport Beverages Corp.




                                        3
Perspectives of Leadership

                   Competency
                   Perspective


   Implicit                         Behavioural
 Leadership       Leadership        Perspective
 Perspective
                 Perspectives

     Transformational        Contingency
       Perspective           Perspective




                        4
Seven Leadership Competencies

    Emotional     • Perceiving, assimilating, understanding,
   Intelligence     and regulating emotions


                  • Truthfulness
    Integrity
                  • Translates words into deeds


                  • Inner motivation to pursue goals
      Drive
                  • Need for achievement, quest to learn


   Leadership     • High need for socialized power to
   Motivation       accomplish team’s or firm’s goals

                                                        more

                       5
Seven Leadership Competencies (con’t)


                  • High self-efficacy regarding ability to
Self-Confidence
                    lead others


                  • Above average cognitive ability
  Intelligence
                  • Can analyze problems/opportunities


 Knowledge of     • Familiar with business environment
 the Business     • Aids intuitive decision making




                        6
In Search of Leader Integrity

Studies say integrity is the most important leadership
characteristic
Also called “authentic leadership”
    Individual acts with sincerity
    Has a higher moral capacity to judge dilemmas

Yet, most people think business leaders lack
integrity:
    73% say CEOs of large firms can’t be trusted (US)
    Nearly 40% do not trust their immediate boss (UK)
    Approx 50% say business wrongdoing has undermined
     their trust in employers (Australia)



                           7
Competency Perspective Limitations

Implies a universal approach
    But some competencies might not be valuable in all
     situations

Alternative combinations of competencies might work
just as well
    Not necessarily the same set needed

Some traits are subjective
    Supports implicit leadership theory

Several competencies indicate leadership potential,
not actual leadership



                            8
Leader Behaviour Perspective

People-oriented behaviours
  Showing mutual trust and respect
  Concern for employee needs
  Desire to look out for employee welfare

Task-oriented behaviours
  Assign specific tasks
  Ensure employees follow rules
  Set “stretch goals” to achieve performance capacity



                          9
Path-Goal Leadership Styles

 Directive
   Task-oriented behaviours
 Supportive
   People-oriented behaviours
 Participative
   Encouraging employee involvement
 Achievement-oriented
   Using goal setting and positive self-
    fulfilling prophecy



                          10
Path-Goal Leadership Model

                     Employee
                    Contingencies
       Leader                            Leader
     Behaviours                       Effectiveness
•   Directive                       • Employee
                                      motivation
•   Supportive
                                    • Employee
•   Participative                     satisfaction
•   Achievement-                    • Leader
    oriented                          acceptance

                    Environmental
                    Contingencies


                       11
 Path-Goal Contingencies

Employee
Contingencies      Directive Supportive Participative Achievement

Skill/Experience     low           low          high         high

Locus of Control     external      external     internal     internal




Environmental
Contingencies      Directive Supportive Participative Achievement

Task Structure      nonroutine   routine        nonroutine      ?

Team Dynamics       –ve norms    low cohesion   +ve norms       ?




                            12
  Other Contingency Leader Theories

Situational Leadership Model (Hersey/Blanchard)
    Effective leaders vary style with follower “readiness”
    Leader styles – telling, selling, participating, and delegating

Fiedler’s Contingency Model
    Leadership style is stable --based on personality
    Best style depends on situational control -- leader-member
     relations, task structure, position power




                              13
Leadership Substitutes

Contingencies that limit a leader’s influence or make
a particular leadership style unnecessary.

Examples:
  Training and experience replace task-oriented leadership
  Cohesive team replaces supportive leadership
  Self-leadership replaces achievement-oriented leadership
Evidence suggests that substitutes might help, but
don’t completely substitute for real leadership




                          14
Ray Young Transforms GM Brazil

Ray G. Young, the Canadian
executive who now leads General
Motors’ operations in Brazil, is making
an impact in that highly competitive
market. “He has brought a sense of
purpose to General Motors that they
didn’t seem to have before,” says
industry consultant Ricardo Durazzo.



                                          Paul Fridman for the New York Times




                         15
Transformational v. Transactional Leaders


Transformational leaders
  Leading -- changing the organization
   to fit environment
  Change agents

Transactional leaders
  Managing -- linking job performance to
   rewards
  Ensure employees have necessary
   resources
  Apply contingency leadership

                                            Paul Fridman for the New York Times




                          16
Transformational v. Charismatic Leaders


Is charismatic leadership essential
for transformational leadership?
Some experts say yes, but
emerging view is that:
  Charisma is distinct from
   transformational leadership
  A personal trait that might help
   transform, or might just help the leader
  Charismatic leadership might have
   opposite effect -- creates dependence,
   not empowerment
                                              Paul Fridman for the New York Times




                            17
Transformational Leadership Elements


   Creating
                         Communicating
  a Strategic
                           the Vision
    Vision

            Transformational
               Leadership

   Building                Modelling
 Commitment                the Vision




                 18
Evaluating Transformational Leadership


Transformational leadership is important
  Higher employee satisfaction, performance, org
   citizenship, creativity

Transformational leadership limitations
  Circular research
    • Transformational leaders identified by their success
  Universal theory
    • Need a contingency-oriented theory
    • Recognize differences across cultures




                          19
Implicit Leadership Perspective


                    Attributing
                    Leadership




                  Implicit
                Leadership
                Perspective
       Need for                   Stereotyping
      Situational
       Control                     Leadership

                     20
Ubuntu Leadership

                                           Ubuntu is “that profound African
                                           sense that each of us is human
                                           through the humanity of other
                                           human beings,” explains former
                                           South African president Nelson
                                           Mandela (shown here). The
                                           ubuntu value system provides a
                                           framework for leading others in
                                           Africa.
    ©EPA Photo/EPA/ Kim Ludbrook/Corbis




                                          21
Cultural Issues in Leadership
                                          Societal cultural values and
                                          practices affect leaders:
                                              Shape leader’s values/norms
                                              Influence decisions and actions

                                          Some leadership styles are
                                          universal, others differ across
                                          cultures
                                              “Charismatic visionary” seems to
                                               be universal
                                              Participative leadership works
                                               better in some cultures than
    ©EPA Photo/EPA/ Kim Ludbrook/Corbis        others



                                          22
Gender Issues in Leadership

Male and female leaders have
similar task- and people-oriented
leadership.
Participative leadership style is used
more often by female leaders.




                   23
Evaluating Female Leaders

 Past evidence
     Women rated less favourably than equivalent
      male leaders due to stereotyping

 Recent evidence
     Women rated more favourably than men,
      particularly on emerging leadership styles
      (coaching, teamwork)




                         24
C H A P T E R: F O U R T E E N



                 Leadership in
                 Organizational
                 Settings


                                 14

				
DOCUMENT INFO
Description: Prof Rushen's notes for MBA / BBA students