1

Chapter 14Leadership

Dr. Ellen A. Drost

2

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

3

Leadership

Differencesbetween

Leaders andManagers

1

4

Leaders versus Managers

MANAGERS

Do things rightStatus quoShort-term

MeansBuilders

Problem solving

LEADERS

Do the right thingChange

Long-termEnds

ArchitectsInspiring & motivating

5

Leaders versus ManagersAmerican 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

6

Who Leaders Are and What Leaders Do

Leadership Traits

LeadershipBehavior

7

Leadership TraitsDesire to LeadDriveKnowledge of the BusinessCognitive AbilityEmotional StabilitySelf-ConfidenceHonesty and Integrity

8

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.

9

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

10

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.

11

Basic Assumptions of Path-Goal Theory

Clarify paths to goalsClear paths to goals by solving problems and removing roadblocksIncrease the number and kinds of rewardsavailable for goal attainmentDo things that satisfy followers today or will lead to future rewards or satisfactionOffer followers something unique and Valuable beyond what they’re experiencing

12

Path-Goal TheorySubordinate Contingencies•Perceived Ability•Locus of Control•Experience

Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group

Outcomes•Subordinate satisfaction•Subordinate performance

Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented

13

Adapting Leader Behavior:Path-Goal Theory

LeadershipStyles

Subordinateand

EnvironmentalContingencies

Outcomes

14

Leadership Styles• Directive

–clarifying expectations and guidelines• Supportive

–being friendly and approachable• Participative

–allowing input on decisions• Achievement-Oriented

–setting challenging goals

15

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

16

Visionary Leadership

CharismaticLeadership

TransformationalLeadership

17

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

18

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

19

Ethical and Unethical Charismatic Leaders

Charismatic BehaviorsCharismatic Behaviors Unethical CharismaticsUnethical CharismaticsExercising 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

20

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

21

Transformational Leadership

• Generates awareness and acceptance of group’s purpose and mission

• Gets followers to accomplish more than they intended or thought possible

22

Components of Transformational Leadership

1. Charisma or idealized influence2. Inspirational motivation3. Intellectual stimulation4. Individualized consideration

6.2

23

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.