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LeadershipLeadership

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LeadershipLeadership Leadership is the process where a person

exerts influence over others and inspires, motivates and directs their activities to achieve goals.

Effective leadership increases the firm’s ability to meet new challenges.

Leader: The person exerting the influence.Personal Leadership Style: the ways leaders choose to

influence others. Some leaders delegate and support subordinates, others are

very authoritarian. Managers at all levels have their own leadership style.

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Leaders are people who are able to influence others and who possess managerial authority.

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Leadership Across CulturesLeadership Across Cultures

Leadership styles may vary over different cultures. European managers tend to be more people-oriented than

American or Japanese managers.Japanese culture is very collective oriented, while

American focuses more on profitability. Time horizons also are affected by cultures.

U.S. firms often focus on short-run efforts.Japanese firms take a longer-term outlook.

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Sources of PowerSources of Power

RewardRewardPowerPower

RewardRewardPowerPower

LegitimateLegitimatePowerPower

LegitimateLegitimatePowerPower

CoerciveCoercivePowerPower

CoerciveCoercivePowerPower

ExpertExpertPowerPower

ExpertExpertPowerPower ReferentReferent

PowerPower

ReferentReferentPowerPower

Enable managers to beEnable managers to beleaders & influenceleaders & influence

subordinates to subordinates to achieve goalsachieve goals

Enable managers to beEnable managers to beleaders & influenceleaders & influence

subordinates to subordinates to achieve goalsachieve goals

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Sources of PowerSources of Power

Used to affect other’s behavior and get them to act in given ways. Legitimate Power: manager’s authority resulting by their

management position in the firm.

Reward Power: based on the manager’s ability to give or withhold rewards.

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Sources of PowerSources of Power Coercive Power: based in ability to punish others.

Expert Power: based on special skills of leader.

Referent Power: results from personal characteristics of the leader which earn worker’s respect, loyalty and admiration.

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EmpowermentEmpowermentProcess of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers:

Get workers involved in the decisions.

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The Styles of Leadership

Autocratic style of leadershipDemocratic style of leadershipLaissez-faire style of leadership

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Autocratic style of leadership : The term used to describe a leader who centralizes authority, dictates work method, makes unilateral decisions, and limits employee participation.

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Democratic style of leadership: The term used to describe a leader who involves employees in decision making delegates authority, encourages participation in deciding work methods and goals, and uses feedback to coach employees.

This style can be further classified in two ways: consultative and participative

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Laissez-faire style of leadership:

The term used to describe a leader who gives employees complete freedom to make decisions and to decide on work method.

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Leadership ModelsLeadership Models– Trait Model: sought to identify personal characteristics responsible for effective leadership.– Ralph Stogdill, one of the leading authorities in this field has stated that a leader is a person who has got–A strong drive for responsibility and task completion–Vigor and persistence–Venturesome–Drive to exercise initiative in social situations–Self confidence and a sense of personal identity–Readiness to absorb interpersonal stress–Willingness tolerate frustration and delay –Willingness to accept consequences of decision and action

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Research shows that traits do appear to be connected to effective leadership.Many “traits” are the result of skills and knowledge.Not all effective leaders possess all these traits.

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Great Man Theory

Major changes in the history of an organization or society as the result of innovative efforts of a few superior individuals, the giants of their time

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Likerts Four Systems Theory

1961, Rensis Likert- Univ of MichiganIdentified and labeled these styles as followsSystem 1: Exploitative Authoritative- Attempts to exploit

subordinatesSystem 2:Benevolent Authoritative-Authoritarian but

paternalistic in natureSystem 3: Participative-Consultative- Requests and

receives inputs from subordinatesSystem 4: Participative-Democratic- Decisions are made

by consensus and majority based on total participation

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Two Dimensions of Leader Behaviors

Ohio state university’s research:

Initiating structure: the extent to which a leader defines and structures his or her role and the roles of employees to attain goals.

Consideration: the extent to which a leader has job relationships characterized by mutual trust, respect for employees’ ideas, and regard for their feelings.

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ConsiderationConsideration Initiating StructureInitiating Structure

Consideration & Initiating StructureConsideration & Initiating Structure

Is friendly, approachable

Do little things to make it funto be a member of group

Give advance notice of changes

Willing to make changes

Treats group members as equals

Is friendly, approachable

Do little things to make it funto be a member of group

Give advance notice of changes

Willing to make changes

Treats group members as equals

Tries out ideas in the group

Lets group members know what is expected

Assigns workers to tasks

Schedules work to be done

Maintains standardsof performance

Tries out ideas in the group

Lets group members know what is expected

Assigns workers to tasks

Schedules work to be done

Maintains standardsof performance

Rate manager from 1 (never does) to 5 (always does)

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The Managerial Grid: Employee oriented: leaders emphasize

interpersonal relations, take a personal interest in the needs of employees, and accept individual difference.

Production oriented: leaders emphasize the technical or task aspects of a job, are concerned mainly with accomplishing tasks, and regards group members as a means to accomplishing goals.

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1 2 3 4 5 6 7 8 9

1

2

3

4

5

6

7

8

9

Concern for production

Con

cern

for

peop

le

The Managerial Grid

1,9 country club management

1,1 impoverished management

9,1 task management

9,9 team management

5,5 middle of the road management

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Contingency Theories of Leadership

Fiedler modelPath-goal theorySituational leadership

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LPC(least-preferred coworker questionnaire)

This is a questionnaire that measures whether a person is task or relationship oriented.

Three situational factors Matching the leader’s style with the situations

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Contingency Models Contingency Models

Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. Leader style: the enduring, characteristic approach to

leadership a manager uses.Relationship-oriented: concerned with developing good

relations with workers.Task-oriented: concerned that workers perform so the

job gets done.

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Fiedler’s Model Fiedler’s Model Situation characteristic: how favorable a given situation

is for leading to occur.Leader-member relations: determines how much

workers like and trust their leader.Task structure: extent to which workers tasks are clear-

cut. Clear issues make a situation favorable for leadership.

Position Power: amount of legitimate, reward, & coercive power a leader has due to their position. When positional power is strong, leadership opportunity

becomes more favorable.

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Fiedler’s Contingency ModelFiedler’s Contingency Model

GOOD POORGOOD POOR

HIGH LO W HIGH LOW HIGH LO W HIGH LOW

SS WW SS WW SS WW SS WW

Leader-MemberRelations

TaskStructure

PositionPower

Kinds ofLeadershipSituations

VeryFavorable

VeryUnfavorable

I II III IV V VI VII VIII1

Relationship-oriented managers most effective in IV, V, VI, VII.Task-oriented managers most effective in I, II, III or VIII.

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House’s Path-Goal ModelHouse’s Path-Goal Model

Model suggests that effective leaders motivate workers to achieve by:

1) Clearly identifying the outcomes workers are trying to achieve.

2) Reward workers for high-performance and attainment.

3) Clarifying the paths to the attainment of the goals.Path-Goal is a contingency model since it proposes the

steps managers should take to motivate their workers.

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Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000Path-goal Theory

Leader behavior• Directive•Supportive•Participative•Achievement oriented

Outcomes•Performance•Satisfaction

Environmental contingency factors•Task structure•Formal authority system•Work group

Employee contingency factors•Locus of control •Experience•Perceived ability

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High R

elat

ion

ship

b

ehav

ior

Task behavior High Low

R4 R3 R2 R1

Able and

willingAbleand

unwilling

Unable and

willing Unableand

unwillingHigh Low Moderate

Follower readiness

S4 S1

S2S3

Telling

SellingParticipating

Delegating

S1: high task and low relationship

S2: high task and high relationship

S3: high relationship and low task

S4: low relationship and low task

Readiness refers to the extend which people have the ability

and the willingness to accomplish a specific task

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Leader-Substitute ModelLeader-Substitute Model Leadership substitute: acts in the place of a leader and

makes leadership unnecessary. Possible substitutes can be found:Characteristics of 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 need to be aware that they do not always need

to directly exert influence over workers.

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Transformational LeadershipTransformational Leadership

Started with Von Pierre, CEO of Siemens, and allows dramatic improvements in management effectiveness.

Transformational managers:Make subordinates aware of how important their jobs

are by providing feedback to the worker.Make subordinates aware of their own need for

personal growth and development. Empowerment of workers, added training help.

Motivate workers to work for the good of the organization, not just themselves.

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Transformational LeadersTransformational Leaders Transformational leaders are charismatic and have a

vision of how good things can be.

Transformational leaders openly share information with workers.

Transformational leaders engage in development of workers.

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Transactional LeadershipTransactional LeadershipInvolves managers using the reward and coercive power to encourage high performance.

Managers who push subordinates to change but do not seem to change themselves are transactional.

The transactional manager does not have the “vision” of the Transformational leader.

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Gender and LeadershipGender and Leadership

The number of women managers is rising but still relatively low in top levels.

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. However, women are seen to be more participative than

men.