Principles of Management Leadership in Organizations Nature of Leadership • Leadership – The ability to influence and to motivate others to achieve organizational goals. – The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. • Effective leadership increases the firm’s ability to meet new challenges. • Leader – Someone who advances organizational goals by influencing the attitudes and actions of others. – An individual who is able to exert influence over other people to help achieve group or organizational goals. Nature of Power • Power – The capacity to affect the decisions, attitudes and behaviour of others • Legitimate Power – Power derived from a specific position in the organizations structure and the formal authority vested in it • Reward Power – Power derived from the ability to provide valued rewards to others • Coercive Power – Power derived from the ability to penalize others • Informational Power – Power derived from the ability to control access to important information • Expert Power – Power derived from the manager’s personal skills, technical knowledge and experience • Referent Power – Power derived from the ability to inspire respect, admiration and loyalty Sources of Power Empowerment • Empowerment – The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes. • Organizational Politics – The pursuit, protection, and use of power to achieve individual or group goals not necessarily directly related to organizational goals. Theories of Leadership • Personal Leadership Style – The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management. • Leaders may delegate and support subordinates, while others are very authoritarian. – The challenge is for managers at all levels to develop an effective personal management style. • Leadership styles may vary among different countries or cultures. – European managers tend to be more people-oriented than American or Japanese managers. – Japanese managers are group-oriented, while U.S managers focuses more on profitability. – Time horizons also are affected by cultures. Theories of Leadership • Trait Theories • Behavioural Theories • Contingency Theories Trait Theories • Traits – An individual’s personal characteristics • Trait Model – Attempted to identify personal characteristics that cause for effective leadership. • Research shows that certain personal characteristics do appear to be connected to effective leadership. • Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits. Behavioural Theories • Behavioral Model – Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates • Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates • Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective. • Both behaviors are independent; managers can be high or low on both behaviors. • Autocratic Leader – A manager who tends to centralize authority and to make unilateral decisions. • Democratic Leader – A manager who tends to delegate authority and to encourage participation in decision making. Behavioural Theories • The Michigan Studies – Employee-Centered Leader Behaviour – Job-Centered Leader Behaviour • The Ohio State Studies – Initiating Structure – Consideration • Blake and Mouton’s Managerial Grid – A method developed to analyze leader behaviour using a grid with two axes – concern for people and concern for production. Contingency Theories • The Fielder Contingency Model • Path-Goal Theory • The Vroom-Yetton-Jago Model • Hersey-Blanchard Situational Leadership Theory • Substitutes for Leadership Theories Fiedler’s Model • Effective leadership is contingent on both the characteristics of the leader and of the situation. • Leader style is the enduring, characteristic approach to leadership that a manager uses and does not readily change. • Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them. • Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done. • Least Preferred Co-worker Scale – A questionnaire that scores managers’ description of the one person they have least enjoyed working with. House’s Path-Goal Theory • A contingency model which hold that the leader effectiveness depends on the ability to motivate and to satisfy employees to they will perform • Proposing the effective leaders can motivate subordinates by: 1. Clearly identifying the outcomes workers are trying to obtain from their jobs. 2. Rewarding workers for high-performance and goal attainment with the outcomes they desire 3. Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability. Vroom-Yetton-Jago Model • A contingency theory of leadership that examines how situational factors affect the degree of employee participation in decision making. • Four types of situational factors that affect decision: – Decision Quality – Decision Acceptance – Concern for Employee Development – Concern for Time Hersey-Blanchard Situational Theory • A contingency theory of leadership that contends that leader behaviour should be altered according to the employees’ readiness to perform tasks. • Leader Styles: – Telling – Selling – Participating – Delegating The Leader Substitutes Model • Substitutes – Situational variables that make leader behaviour unnecessary or redundant. • Neutralizers – Situational variables that negate leader behaviour or prevent leaders from exhibiting particular behaviours. • Leadership Substitute – Acts in the place of a leader and makes leadership unnecessary. Possible substitutes can be found in: • Characteristics of the subordinates: their skills, experience, motivation. • Characteristics of context: the extent to which work is interesting and fun. – Worker empowerment or self-managed work teams reduce leadership needs. – Managers should be aware that they do not always need to directly exert influence over workers. Current Trends in Leadership • Transactional Leadership – An approach in which managers motivate employees to perform as expected by clarifying task requirements and by providing rewards in return for employee efforts to achieve the goals. – Use their reward and coercive powers to encourage high performance— they exchange rewards for performance and punish failure. – Push subordinates to change but do not seem to change themselves. – Do not have the “vision” of the transformational leader. • Transformational Leadership – Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback to the worker. – Makes subordinates aware of their own needs for personal growth and development. – Motivates workers to work for the good of the organization, not just themselves. Gender and Leadership The number of women managers is rising but is still relatively low in the top levels of management. – Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused. • Research indicates that actually there is no gender-based difference in leadership effectiveness. • Women are seen to be more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills. Emotional Intelligence and Leadership • The Moods of Leaders: – Affect their behavior and effectiveness as leaders. – Affect the performance of their subordinates. • Emotional Intelligence – Helps leaders develop a vision for their firm. – Helps motivate subordinates to commit to the vision. – Energizes subordinates to work to achieve the vision.
Pages to are hidden for
"Management Lecture 17 Leadership"Please download to view full document