LEADERSHIPChapter 14

Generosa, Morales, Sia, Pineda

WHAT IS LEADERSHIP?

The process of influencing others to achieve group or organizational goals.

LEADERS VERSUS MANAGERS

Leaders

• Are concerned with doing the right thing.

• Focus on vision, mission, goals, and objectives.

• Take a long term view.

Managers

• Are concerned with doing things right.

• Focus on productivity and efficiency.

• Have a relatively short-term perspective.

LEADERS VERSUS MANAGERS

Leaders

• Concerned with expanding people’s choice and options.

• Inspire and motivate others to find their own solutions.

• More concerned with ends, what gets done.

Managers

• Concerned with control and limiting the choice of others.

• Solve problems so that others can do their work.

• More concerned with means, how things done.

MANAGERS are critical to getting out the day-to day work.

LEADERS are critical to inspiring employees and setting the organization’s long term

direction.

Leadership Traits

• A leadership theory that holds that effective leaders possess a similar set of traits or characteristics.

• Is also known as the “great person” theory.

• TRAITS - a relatively stable characteristics such as abilities, psychological motives, and consistent patterns of behavior.

LEADERS are different from NONLEADERS in the following traits:

DriveThe desire to leadHonesty/integritySelf-confidence

Emotional stabilityCognitive ability

Knowledge of the business

DRIVERefers to a high level of effort and is

characterized by achievement, motivation, initiative, energy, and tenacity.

DESIRE TO LEAD

They want to be in charge and think about ways to influence or convince others.

HONESTY/ INTEGRITY

HONESTY being truthful with others, is a cornerstone of leadership.

INTEGRITY is the extent to which leaders do what they say or they will do.

SELF-CONFIDENCE

Believing in one’s abilities

Are more decisive and assertive.

EMOTIONAL STABILITY

Refers to the state of being able to have the appropriate feelings about the common experiences

and being able to act in a rational manner.

COGNITIVE STABILITY

Refers to the individual’s capacity to think, reason, and problem solved.

KNOWLEDGE OF THE BUSINESS

Understand the key technological decisions and concerns facing their

companies.

LEADERSHIP BEHAVIORS

INITIATING STRUCTURE

The degree to which a leader structures the role of followers by setting goals, giving directions,

setting deadlines, and assigning tasks.

CONSIDERATION

The extent to which a leader is friendly, approachable, and supportive and show

concerns for employees.

Specific leader consideration behaviors include:

Listening to employees’ problems and concerns.

Consulting with employees before making decisions.

Treating employees as equals.

FIEDLER’S CONTIGENCY THEORY

shows the relationship between the leader’s orientation or style and group performance under differing situational conditions.

Fiedler assumes that..

Leaders style is fixed and can be measured by the least preferred co-worker (LPC) questionnaire

Least Preferred Co-Worker (LPC) Questionnaire

High Score• Relationship

Oriented

Low Score• Task Oriented

RELATIONSHIP ORIENTED

Are better leaders under favorable situations.

TASK ORIENTED

Are better leaders in highly favorable and unfavorable

situations.

Situational Favorableness

LEADER-MEMBER RELATIONS

Which refers to how well and there is a friendly work atmosphere

TASK STRUCTURE

Is the degree to which the requirements of a subordinate’s tasks are clearly specified

Situational Favorableness

POSITION POWER

The degree to which leaders are able to hire, fire, reward and punish workers.

PATH GOAL THEORY : ADAPTING LEADER

BEHAVIOR

• States that leaders can increase subordinate satisfaction and performance by clarifying & clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.

Leaders have to meet 2 conditions

1. The leaders behavior must be a source of immediate or future satisfaction for followers.

2. While providing the coaching, guidance and all, they must also compliment and not duplicate the characteristics of follower’s work environment

4 kinds of leadership styles

1. Directive leadership – a style in which the leader lets employees know precisely what is expected of them, gives them specific guidelines for performing tasks, schedules work, sets standards of performance & makes sure that people follow rules and regulations.

2. Supportive leadership – a style in which the leader is friendly and approachable, shows concern for employees and their welfare, treats them as equals and creates a friendly climate.

3. Participative leadership – a style in which the leader consults employees for their suggestions and input before making decisions.

4. Achievement – oriented leadership – style in which the leader sets challenging goals, has high expectations of employees and displays confidence that employees will assume responsibility and put forth extraordinary effect.

Subordinate & Environmental Contingencies

3 kinds of subordinate contingencies

1. Perceived ability – simply how much ability subordinates believe they have for doing their job well.

2. Experience – experienced employees are likely to react in a similar way.

3. Locus of control – is a personality measure that indicates the extent to which people believe that they have control over what happens to them in life.

• Internals – believe that what happens to them, good or bad, is largely a result of their choices and actions.

• Externals – believe that what happens to them is caused by external forces beyond their control.

3 kinds of environmental contingencies

1. Task structure – the degree to which the requirements of a subordinate’s tasks are clearly specified.

2. Formal Authority System – is an organization’s set of procedures, rules and policies.

3. Primary work group – refers to the amount of work-oriented participation or emotional support that is provided by an employee’s immediate work group.

HOW TO APPLY PATH-GOAL THEORY

• Clarify paths to goals.• Clear paths to goals by solving problems and

removing roadblocks.• Increase the number and kinds of rewards

available for goal attainment.• Do things that satisfy followers today or will

lead to future rewards or satisfaction.• Offer followers something unique and

valuable beyond what they’re experiencing or can already do for themselves.

When to use Directive, Supportive, Participative or Achievement-Oriented Leadership

DIRECTIVE SUPPORTIVE PARTICIPATIVE ACHIEVEMENT-ORIENTED

Unstructured tasks Structured, simple, repetitive tasks; stressful, frustrating tasks

Complex tasks Unchallenging taks

Workers with external locus of control

Workers lack confidence

Workers with internal locus of control

Unclear formal authority system

Clear formal authority system

Workers not satisfied with rewards

Inexperienced workers

Experienced workers

Workers with low perceived ability

Workers with high perceived ability

Subordinate Contingencies•Perceived Ability•Locus of Control

•Experience

Leadership Styles•Directive

•Supportive•Participative

•Achievement- Oriented

Outcomes•Subordinate Satisfaction

•Subordinate Performance

Environmental Contingencies•Task Structure

•Formal Authority System•Primary Work Group

NORMATIVE DECISION THEORY

It helps leaders decide how much employee participation should be

used when making decisions.

DECISION STYLES

• Using information available at the time, the leader solves the problem or makes the decision.

• The leader obtains necessary information from employees and then selects a solution to the problem. When asked to share information, employees may or may not be told what the problem is.

• The leader shares the problem and gets ideas and suggestions from relevant employees on an individual basis. Individuals are not together as a group so the leader makes the decision.

• The leader shares the problem with employees as a group, obtains their ideas and suggestions, and then makes the decision.

• The leader shares the problem with employees as a group, acts as a facilitator and does not try to influence the group and is willing to accept and implement any solution that has the support of the entire group.

DECISION RULES TO INCREASE DECISION QUALITY

• Quality Rule

• Leader Information Rule

• Subordinate Information Rule

• Goal Congruence Rule

• Problem Structure Rule

DECISION RULES TO INCREASE DECISION ACCEPTANCE

• Commitment Probability Rule

• Subordinate Conflict Rule

• Commitment Requirement Rule

VISIONARY LEADERSHIP

Creates a positive image of the future that motivates organizational members and provides

direction for future planning and goal setting.

Two Kinds of Visionary leadership:

CHARISMATIC LEADERSHIP

TRANSFORMATIONAL LEADERSHIP

Two Kinds of Visionary leadership:

CHARISMATIC LEADERSHIPCharisma is a Greek word meaning “divine gift”.

The behavioral tendencies and personal characteristics of leaders that create exceptionally strong relationships between them and their followers.

Two Kinds of Visionary leadership:

CHARISMATIC LEADERSHIPCharismatic leaders have strong, confident,

dynamic personalities that attracts followers and enable the leaders to create strong bond with their followers.

Charismatic leaders also:

Articulate clear visions for the future that are base on strongly held values or morals

Model those values by acting in ways consistent with their visions

Communicate high performance expectations to followers

Display confidence in followers’ abilities to achieve visions

Two Kinds of Charismatic Leaders:

ETHICAL CHARISMATICS

UNETHICAL CHARISMATICS

ETHICAL CHARISMATIC

Provide developmental opportunities for followers,

Are open to positive and negative feedback,

Recognize others’ contributions,

share information, Has moral standards that

emphasize the larger interests of the group, organization, or society.

UNETHICAL CHARISMATIC

Control and manipulate followers,

Do what is the best for themselves instead of their organizations,

Wants to hear only positive feedback,

Share only information that is beneficial to themselves,

Have moral standards that put their interests before everyone else’s

TRANSFORMATIONAL LEADERSHIP

Goes further by generating awareness and acceptance of a group's purpose and mission and by getting employees

to see beyond their own needs and self-interest for the good of the group.

Four Components of transformational leadership:

CHARISMATIC LEADERSHIP OR IDEALIZED INFLUENCE

INSPIRATIONAL MOTIVATIONINTELLECTUAL STIMULATIONINDIVIDUALIZED CONSIDERATION

Charismatic Leadership or Idealized Influence

Means that transformational leaders act as role models for

their followers.

INSPIRATIONAL STIMULATIONMeans that transformational leaders

motivate and inspire followers by providing meaning and challenge to

their work.

INTELLECTUAL STIMULATION

Means that transformational leaders encourage followers to be creative and

innovative, to question assumptions, and to look at problems and stimulations in

new ways even if their ideas are different from the leaders.

INDIVIDUALIZED CONSIDERATION

Means that transformational leaders pay special attention to followers; individual needs by creating learning opportunities, accepting and tolerating individual differences, encouraging two-way communication, and being good listeners.

TRANSACTIONAL LEADERSHIP

Leadership based on an exchange process, in which followers are rewarded for good performance and punished for

poor performance.

NORMATIVE DECISION THEORY

It helps leaders decide how much employee participation should be

used when making decisions.

Decision Styles

• Using information available at the time, the leader solves the problem or makes the decision.

• The leader obtains necessary information from employees and then selects a solution to the problem. When asked to share information, employees may or may not be told what the problem is.

• The leader shares the problem and gets ideas and suggestions from relevant employees on an individual basis. Individuals are not together as a group so the leader makes the decision.

• The leader shares the problem with employees as a group, obtains their ideas and suggestions, and then makes the decision.

• The leader shares the problem with employees as a group, acts as a facilitator and does not try to influence the group and is willing to accept and implement any solution that has the support of the entire group.