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1
Chapter 14Leadership
Dr. Ellen A. Drost
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What Is Leadership?Objectives:
•explain what leadership is.
•describe who leaders are and what effectiveleaders do.
•Theories of Leadership
• Traits
• Behavior
• Situational Approaches
• Strategic Leadership
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Leadership
Differencesbetween
Leaders andManagers
Differencesbetween
Leaders andManagers
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Leaders versus Managers
MANAGERS
Do things rightStatus quoShort-term
MeansBuilders
Problem solving
MANAGERS
Do things rightStatus quoShort-term
MeansBuilders
Problem solving
LEADERS
Do the right thingChange
Long-termEnds
ArchitectsInspiring & motivating
LEADERS
Do the right thingChange
Long-termEnds
ArchitectsInspiring & motivating
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Leaders versus Managers
American organizations (and probably those in much of the rest of the
industrialized world) are under led and over managed.
They do not pay enough attention to doing the right thing, while they pay
too much attention to doing things right.
--Warren Bennis
American organizations (and probably those in much of the rest of the
industrialized world) are under led and over managed.
They do not pay enough attention to doing the right thing, while they pay
too much attention to doing things right.
--Warren Bennis
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Who Leaders Are and What Leaders Do
Leadership Traits
Leadership Traits
LeadershipBehavior
LeadershipBehavior
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Leadership TraitsDesire to Lead
Drive
Knowledge of the Business
Cognitive Ability
Emotional Stability
Self-Confidence
Honesty and Integrity
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Leadership BehaviorsInitiating Structure or Task-Related Behavior
The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks.
Consideration or Relationship-Related Behavior
The extent to which a leader is friendly, approachable, and supportive and shows concern for employees.
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Situational Approaches to Leadership
All situational approaches to leadership assume that the effectiveness of any leadership style, the way a leader generally behaves toward followers, depends on the situation
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Path-Goal TheoryPath-Goal Theory
A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.
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Basic Assumptions of Path-Goal Theory
Clarify paths to goalsClarify paths to goals
Clear paths to goals by solving problems and removing roadblocksClear paths to goals by solving problems and removing roadblocks
Increase the number and kinds of rewardsavailable for goal attainmentIncrease the number and kinds of rewardsavailable for goal attainment
Do things that satisfy followers today or will lead to future rewards or satisfactionDo things that satisfy followers today or will lead to future rewards or satisfaction
Offer followers something unique and Valuable beyond what they’re experiencingOffer followers something unique and Valuable beyond what they’re experiencing
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Path-Goal TheorySubordinate Contingencies•Perceived Ability•Locus of Control•Experience
Subordinate Contingencies•Perceived Ability•Locus of Control•Experience
Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group
Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group
Outcomes•Subordinate satisfaction•Subordinate performance
Outcomes•Subordinate satisfaction•Subordinate performance
Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented
Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented
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Adapting Leader Behavior:Path-Goal Theory
LeadershipStyles
LeadershipStyles
Subordinateand
EnvironmentalContingencies
Subordinateand
EnvironmentalContingencies
OutcomesOutcomes
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Leadership Styles• Directive
– clarifying expectations and guidelines• Supportive
– being friendly and approachable• Participative
– allowing input on decisions• Achievement-Oriented
– setting challenging goals
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Path Goal Theory: Leadership StylesDirective Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of control Unclear formal authority system
Structured, simple, repetitive tasks
Stressful, frustrating tasks When workers lack confidence Clear formal authority system
Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived
ability Workers with internal locus of
control Workers not satisfied with
rewards Complex tasks
Unchallenging tasks
Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of control Unclear formal authority system
Structured, simple, repetitive tasks
Stressful, frustrating tasks When workers lack confidence Clear formal authority system
Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived
ability Workers with internal locus of
control Workers not satisfied with
rewards Complex tasks
Unchallenging tasks
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Visionary Leadership
CharismaticLeadership
CharismaticLeadership
TransformationalLeadership
TransformationalLeadership
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Charismatic Leadership• Creates an exceptionally strong
relationship between leader and follower• Charismatic leaders:
– articulate a clear vision, based on values– model values consistently with vision– communicate high performance
expectations– display confidence in followers’ abilities
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Kinds of Charismatic Leaders• Ethical Charismatics
– provide developmental opportunities– open to positive and negative feedback– recognize others’ contributions– share information– concerned with the interests of the group
• Unethical Charismatics– control and manipulate followers– do what is best for themselves– only want positive feedback– motivated by self-interest
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Ethical and Unethical Charismatic Leaders
Charismatic BehaviorsCharismatic Behaviors Unethical CharismaticsUnethical Charismatics
Exercising Power Power is used to dominate others
Creating the vision Vision comes solely from the leader
Communicating with followers
One-way communication, not open to input from others
Accepting feedback Prefer yes-men, punish candid feedback
Don’t want followers to think, prefer uncritical acceptance of own ideas
Stimulating followers
Developing followers Insensitive to followers’ needs
Living by moral standards
Follow standards only if they satisfy immediate self interests
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Reducing Risks of Unethical Charismatics
1. Have a clearly written code of conduct2. Recruit, select, and promote managers
with high ethical standards3. Train leaders how to value, seek, and
used diverse points of view4. Celebrate and reward those who
exhibit ethical behaviors
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Transformational Leadership
• Generates awareness and acceptance of group’s purpose and mission
• Gets followers to accomplish more than they intended or thought possible
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Components of Transformational Leadership
1. Charisma or idealized influence
2. Inspirational motivation
3. Intellectual stimulation
4. Individualized consideration
6.26.2
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Leaders Need Peer Support, Just Like Their Employees
• CEOs say it’s tough to get advice they can trust:– consultants are too vague and interested in
their contracts– lower-level executives are too deferential
• Some CEOs are starting to form peer groups to share advice and provide a sounding board for each other.
• As long as participants adhere to the SEC’s regulations, members can bring all kinds of issues before the group – and do.
Source: P. Dvorak, “Do-It-Yourself Consulting: CEOs Gather to Swap Tips,” Wall Street Journal, 26 July 2007, A1.