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					      Chapter 8
   Leadership


  Michael A. Hitt
  C. Chet Miller
 Adrienne Colella

Slides by Ralph R. Braithwaite
                          8-1
               Cathy Benko at Deloitte
                     Consulting
Cathy Benko   • What are your reactions to Cathy Benko’s
                story?
              • What are your thoughts about her quote at
                the end of the section?
                “Life is not fair. Not everybody starts at the
                same place or has the same opportunities
                and support someone else might have.
                Don’t spend time wondering why you’re in
                the position you’re in. Just get out there and
                do as well as you can …”


          Exploring Behavior in Action                      8-2
   The Strategic Importance of
           Leadership
• Is there a link between leadership and
 organizational performance?
• Do organizations do enough to develop
 leadership skills?
• Strategic leadership involves developing a
 vision, empowering associates, building
 relationships, and building and maintaining a
 high-involvement, high-performance
 workforce.

                                                 8-3
        Knowledge Objectives
1. Define leadership and distinguish between formal and
   informal leaders.
2. Explain the trait concept of leadership.
3. Describe major behavioral theories of leadership and
   compare and contrast them.
4. Explain contingency theories of leadership and how
   they relate leadership effectiveness to situational
   factors.
5. Describe transformational leaders.
6. Discuss topics of current relevance, including leader-
   member exchange, servant leadership, gender effects
   on leadership, and global differences in leadership.

                                                       8-4
    The Nature of Leadership
The process of providing general direction and
influencing individuals or groups to achieve
goals.




                                                 8-5
                     Effective Leaders
                Effective leaders are concerned with
                “doing the right things” rather than
                “doing things right.” The right things
Warren Bennis
                are:
                • Creating and communicating a vision
                  of what the organization should be
                • Communicating with and gaining
                  support of multiple constituencies
                • Persisting in the desired direction
                • Creating the appropriate culture and
                  obtaining the desired results
                                                         8-6
    Trait Theory of Leadership
Concept that certain traits help make people
effective leaders. Early research suggested that
the traits fell into three categories:

     Physical
   Characteristics

    Personality
   Characteristics
                             Some Criticism


       Abilities
                                               8-7
             Traits Associated with
                   Leadership
        Energy                                    Insightfulness
        Appearance                                Integrity
        Intelligence                              Persistence
        Judgment                                  Self-confidence
        Verbal fluency                            Sense of humor
        Achievement drive                         Tolerance for stress
        Adaptability                              Interpersonal skills
        Aggressiveness                            Prestige
        Enthusiasm
        Extroversion                              Tact
        Initiative

Adapted from Exhibit 8-1: Common Traits Associated with Leadership       8-8
Six Core Traits of Leadership

             Leadership
  Drive                    Integrity
             Motivation




                          Knowledge
  Self-      Cognitive
                            of the
Confidence    Ability
                           Domain

                                       8-9
  Reforming a “Rotten Apple”
What are your thoughts regarding the leadership
traits of Police Commissioner William Bratton?
What are your thoughts regarding the changes he
made that earned him the “Police Executive of the
20th Century” award and his face on the cover of
Time?




                                              8-10
                                          Charismatic
                                        leaders inspire
                                      their followers to
                                   change their needs and
John F. Kennedy                 Winston Churchill Eleanor quests,
                  Adolf Hitler values, follow visionary Roosevelt
                                      and sacrifice their
                      Charisma     own personal interests
                                        for the good of
                                           the cause.




   Martin Luther King, Jr. Ronald Reagan    Barbara Jordan
                                                             8-11
   Behavioral Theories of
       Leadership

 University of        Ohio State
Michigan Studies   University Studies




                                        8-12
University of Michigan Studies
• Job-Centered Leadership Style
  • Employee tasks
  • Methods for accomplishment
• Employee-Centered Leadership Style
  • Employees’ personal needs             Rensis Likert

  • Development of interpersonal relationships




            Daniel Katz     Robert Kahn             8-13
  Ohio State University Studies
• Consideration
   • Leaders express friendship
   • Develop mutual trust and respect
   • Strong interpersonal relationships with staff
• Initiating Structure
   • Well defined patterns of organization and
      communication
  •   Define procedures                               Ralph Stogdill
  •   Delineate relationships with staff
  •   Emphasize goals and deadlines
  •   Assign tasks and identify performance
      expectations
                                                     Edwin Fleishman
                                                               8-14
                   Behavioral Theories of
                       Leadership
 High


                            A                                        D
 Consideration




                 (Employee-Centered Style)




                            B                                        C
                                                       (Job-Centered Style)

     Low                                                                                 High
                                     Initiating Structure


Adapted from Exhibit 8-2: Comparison of Consideration and Initiating Structure with Employee- 8-15
Centered and Job-Centered Concepts
 Contingency Theories of
       Leadership

Fiedler’s Theory   Path-Goal Theory




                                      8-16
  Fiedler’s Contingency
  Theory of Leadership
• Effectiveness depends on leader’s          Fred Fiedler
  behavioral style and the situation
• Leader style measured by the LPC (least preferred
  co-worker) scale
• Situational favorableness assessed by three
  things:

  Leader-member
                    Task structure    Position power
     relations


                                                    8-17
             Fiedler’s LPC Scale
• Esteem for Least Preferred Co-Worker
   Cooperative
                 ___:___:___:___:___:___:___:___   Uncooperative
                  8   7   6   5   4   3   2   1

      Friendly
                 ___:___:___:___:___:___:___:___   Unfriendly
                  8   7   6   5   4   3   2   1


• Low LPC Score
  • Negative adjectives
  • Task-oriented leader (task achievement needs first)
• High LPC Score
  • More positive adjectives
  • Relationship-oriented leader (interpersonal
    relationship needs first)
                                                                8-18
   Situational Characteristics
• Leader-Member Relations
  • The degree to which a leader is respected,
   accepted, and had friendly interpersonal
   relationships with followers
• Task Structure
  • The degree to which tasks are broken down into
   easily understood steps or parts
• Position Power
  • The degree to which a leader can reward, punish,
   promote, or demote individuals in the unit or
   organization

                                                   8-19
   Fiedler’s Contingency Theory
    of Leadership Effectiveness




Adapted from Exhibit 8-3: Fiedler’s Contingency Model of Leadership Effectiveness   8-20
 Path-Goal Leadership Theory

Leadership            Contingency
                                            Outcomes
   Style                Factors




             Martin Evans    Robert House         8-21
        Leader Effectiveness
Leadership can effect employees’ expectancies
and valences in several ways:
• Assign tasks that have high value (valence)
• Support employees’ efforts (effort → performance
  expectancy)
• Tie rewards to goal accomplishment
  (performance→reward instrumentality)




                                                8-22
    Path-Goal Leadership Theory
    Leader Behaviors             Situational Factors

• Directive Leadership         • Subordinate
• Supportive Leadership          Characteristics
• Achievement-Oriented         • Work Environment
    Leadership                   Characteristics
•   Participative Leadership       Effectiveness of
                                   leader behavior
                                   depends on
                                   these situational
                                   factors

                                                       8-23
Interaction of Leader Behavior
    and Situational Factors

 Locus of        Need for      Need for
 Control         Affiliation   Security




  Participative, Directive     Need for
  or Supportive Leaders        Growth

                                          8-24
  Interaction of Leader Behavior
      and Situational Factors
                  Situational Factors
                                                                        Effective Leader
     Subordinate                   Characteristics of the                  Behaviors
    Characteristics                 Work Environment
Internal locus of control                                            Participative
External locus of control                                            Directive
High need for affiliation                                            Supportive
High need for security                                               Directive
                                    Structured task                  Supportive
 Strengths                          Unstructured task                Directive
High growth need                    Complex task                     Participative/
                                                                     Achievement oriented
Low growth need                     Complex task                     Directive
High growth need                    Simple task                      Supportive
Low growth need                     Simple task                      Supportive
                                                                                       8-25
Adapted from Exhibit 8-4: Interaction of Leader Behavior and Situational Factors
                        Phil Jackson and
Managerial
                       Leadership Success
Advice             In terms of leadership, this means treating everyone
                   with the same care and respect you give yourself –
                   and trying to understand their reality without judgment.
                   When we can do that, we begin to see that we all
                   share human struggles, desires, and dreams.
               • What are your thoughts about this quote?
               • Have you ever worked for a leader who
                    approached the job like this?
               •    Does the leadership style one uses need to
Phil Jackson        change based on each situation? Why?
               • When would a leader want to be “invisible”?
                                                                       8-26
    Transactional Leadership
A leadership approach that is based on the
exchange relationship between followers and
leaders. It is characterized by contingent
behavior and active management-by-exception
behavior.
It is the degree to which leaders provide what
followers want in response to good performance.




                                              8-27
      Four Characteristics of
      Transactional Leaders
• Understand what followers want to receive
 from their work, and attempt to give them what
 they desire, contingent on performance
• Clarify links between performance and reward
• Exchange rewards and promises of rewards
 for specified performance levels
• Respond to the interests of followers only if
 the followers are performing satisfactorily


                                                  8-28
    Transactional Leadership
Contingent Reward Behavior
• Clarify performance expectations
• Reward followers when expectations are met
Active Management-by-Exception Behavior
• Clarifies minimal performance standards
• Punishes when standards are not met

              Consistently Monitors
                 Performance

                                               8-29
 Transformational Leadership
A leadership approach that involves motivating
followers to do more than expected, to
continuously develop and grow, to increase self-
confidence, and to place the interests of the unit
or organization before their own.
Involves charisma, intellectual stimulation, and
individual consideration.




                                                8-30
Transformational Leaders Do
       Three Things
    Increase followers awareness of the
    importance of pursuing a vision or mission
    and the strategy required
    Encourage followers to place the interests
    of the unit, organization, or larger collective
    before their own personal interests
    Raise followers’ aspirations so they
    continuously try to develop and improve
    themselves while striving for higher levels
    of accomplishment
                                                8-31
   Characteristics
           Intellectual
           Stimulation



                      Individual
Charisma             Consideration




                                     8-32
           Charismatic Leaders
•   Inspire emotion and passion in followers
•   Get followers to identify with the leader
•   Display confidence
•   Communicate and live up to organizational values
•   Optimistic and enthusiastic




                                                   8-33
       Charisma
   Intellectual
   Stimulation           Intellectual
                         Stimulation


• Increase the followers’ focus on problems and
  develop new ways to solve them
• Reexamine assumptions
• Seek out different views
• Work to be innovative


                                                  8-34
     Individual Consideration
• Support and develop followers to improve self-
  confidence and a desire to improve performance
• Provide individualized attention to followers
• Focus on followers’ strengths
• Act as teachers and coaches




                                     Individual
                                                8-35
                                    Consideration
            Common Behaviors
•   Articulate clear, appealing vision
•   Communicate the vision
•   Delegate significant authority and responsibility
•   Eliminate unnecessary bureaucratic restraints
•   Provide coaching, training and developmental
    experiences
•   Encourage open sharing of ideas and concerns
•   Encourage participative decision making
•   Promote cooperation and teamwork
•   Modify structure to promote key values and objectives


                                                        8-36
       Laissez-Faire Leadership
•   Opposite approach to transformational leadership
•   Not proactive
•   React only to failures or chronic problems
•   Avoid making decisions
•   Often absent or uninvolved in followers’ activities
•   Typically do not have positive outcomes




                                                          8-37
           Commander Abrashoff
                       •   Demonstrated confidence
                       •   Focused on the vision
                       •   Linked tasks to the vision
                       •   Went beyond self-interest
                       •   Created intellectual stimulation
                       •   Displayed individual consideration
D. Michael Abrashoff
                       • Would you want to work for someone
                           like Abrashoff? Why or why not?
                       •   Would his approach work in most work
                           environments? Why or why not?


   USS Benfold                                                  8-38
         Some Conclusions
• Leaders can be trained to exhibit
 transformational leadership behaviors
• Leaders can display both transformational and
 transactional leadership styles
• Both transformational and transactional
 leadership can be positive




                                             8-39
                               The Effects
      Transformational
         Leadership
Charisma
Intellectual Stimulation
Individual Consideration                                               Outcomes

                                                          Individual Outcomes
        Transactional
                                                          Unit/Organization Outcomes
         Leadership
Contingent Reward Behavior
Active Management by
 Exception
                                               Dynamism of the
                                              task/organizational
                                                 environment

Adapted from Exhibit 8-5: The Effects of Transformational and Transactional Leadership   8-40
Ethical Leadership? Authentic
         Leadership!
                     Thoughts?




Dennis Kozlowski




  Experiencing                   8-41
  Strategic OB
Ethical Leadership? Authentic
         Leadership!



Thoughts?
                Ken Lay   Jeff Skilling Andrew Fastow




 Experiencing                                     8-42
 Strategic OB
Ethical Leadership? Authentic
         Leadership!


                Thoughts?            Thoughts?


 Samuel Waksal                        Ryan Brant
                    Martha Stewart




 Experiencing                                      8-43
 Strategic OB
       Authentic Leaders                  Thoughts?
• Guided by values that focus on doing
    what’s right for their constituencies
•   Try to act in accordance with their values
•   Remain transparent
•   “Walk the talk”
•   Place equal weight on getting the task
    accomplished and developing associates
•   Continuously develop themselves
•   Have developed values and personal strengths
    they need to deal with ambiguous ethical issues

      Experiencing                                    8-44
      Strategic OB
Leader-Member Exchange (LMX)
• Different relationships with different followers
    – not all are treated the same
•   High level of contribution is a factor
•   Similarity to the leader is a factor
•   Two groups - an In-group and an Out-group
•   Mutual trust and support
•   Levels of satisfaction




                                                 8-45
Leader-Member Exchange (LMX)
     In Group



    Leader


                Exchange

                           Follower



                             Out Group
                                         8-46
           Servant Leadership
•   Valuing individuals
•   Developing people
•   Building community
•   Conceptualizing
•   Exhibiting foresight
                              Max De Pree
•   Displaying wisdom        Former CEO of
•   Desire to serve others   Herman Miller




                                             8-47
Gender Effects on Leadership
Do women lead differently than men?


        Structural-cultural model of leader behavior



        Socialization model


        Both women and men may be effective
        leaders when style matches the situation

                                                   8-48
   Global Differences
• Anglo cluster (ideal leader)
  • Charismatic influence and inspiration,
    encouraging participation
  • Diplomatic, delegating authority, allowing
    everyone to have their say
• Arabic cluster (ideal leader)
  • Need to balance paradoxical set of expectations
    • Expected not to differentiate themselves from
        others and have modest styles and
    •   Expected to have great deal of power and control,
        and to direct most decisions and actions
                                                       8-49
      Global Differences
• Germanic cluster (ideal leader)
  • Charismatic
  • Highly team-oriented
  • Participative
• Southern Asia cluster (ideal leader)
  • Humane, participative, and charismatic
  • Expected to be benevolent while maintaining a
    strong position of authority



                                                    8-50
          The Strategic Lens
• How should leaders approach individuals,
 units, and organizations suffering from poor
 performance?
• Why is ethical leadership often of utmost
 importance to various shareholders?
• Should women and men lead in different ways?




                                                8-51
Questions




            8-52

				
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