Managing Leadership - NSCC Online Learning Homeaccess.nscc.ca/Business/Filestore/MGMT2020_1125/MGMT2000_PPT_… · Describe the early trait and behavioural theories of leadership

Essentials of Contemporary Management, 3Ce Copyright ©2010 The McGraw-HillCompanies, Inc. All rights reserved

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ManagingLeadership

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1. Describe what leadership is and on what bases of power leaders influence others.

2. Describe the early trait and behavioural theories of leadership and their limitations.

3. Describe the contingency theories of leadership.

4. Compare and contrast transactional and transformational leadership.

5. Explain how gender, culture, and emotional intelligence affect leadership.

Learning Objectives


9-3LeadershipLeadership is the process by which 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: Is the person exerting the influence over other people.

• 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.


9-4Figure 9.1 | Sources of Managerial Power

RewardPower

LegitimatePower

CoercivePower

ExpertPower

ReferentPower

Enable managers to beleaders & influence

subordinates to achieve goals


9-5Sources of Power

• Used to affect others’ behaviour and get them to act in given ways.– Legitimate Power: manager’s authority resulting

by their management position in the firm.• Can be power to hire/fire workers, assign work.

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

• Pay raises, bonuses, verbal praise.• Effective managers use reward power to signal employees

they are doing a good job.


9-6Sources of Power

– Coercive Power: based in ability to punish others.• Ranges from verbal reprimand to pay cuts to firing.• Can have serious negative side effects.

– Expert Power: based on special skills of leader.• First & middle managers have most expert power.• Often found in technical ability.

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

• Usually held by likable managers who are concerned about their workers.


9-7Empowerment• Process of giving employees authority to

make decisions and the responsibility for their outcomes. Empowerment helps managers:

Get workers involved in the decisions!

– Increase worker commitment and motivation.

– To focus on other issues.

• Effective managers usually empower substantial authority to workers.


9-8Trait Models of Leadership

Trait Model: sought to identify personal characteristics responsible for effective leadership.

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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Trait DescriptionIntelligence Helps managers understand complex issues and solve

problems

Knowledge and expertise Helps managers make good decisions and discover ways to increase efficiency and effectiveness

Dominance Helps managers influence their subordinates to achieve organizational goals

Self-confidence Contributes to managers’ effectively influencing subordinates and persisting when faced with obstacles or difficulties

High energy Helps managers deal with the many demands they face

Tolerance for stress Helps managers deal with uncertainty and make difficult decisions

Integrity and honesty Helps managers behave ethically and earn their subordinates’ trust and confidence

Maturity Helps managers avoid acting selfishly, control their feelings, and admit when they have made a mistake

Table 9.1 | Trait and Personal Characteristics


9-10Behavioural Model of Leadership

Behavioural Model: Identifies types of behaviour.

Consideration or employee-centered behaviour:leaders show care, trust and respect toward workers.

Initiating Structure or task–oriented behaviours:managers take steps to make sure work is done. Subordinates perform their job and the organization is efficient and effective.


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Model Focus Key ContingenciesFiedler’s Contingency Model

Hersey Blanchard’s Situational Leadership Theory

Describes two leader styles, relationship-oriented and task-oriented, and the kinds of situations in which each kind of leader will be most effective

Describes how leaders adjust their styles to match their followers’ ability and motivation.

Whether or not a relationship-oriented or a task-oriented leader is effective is contingent upon the situation.

The styles that managers should use are contingent on the ability and motivation of subordinates.

Table 9.2 | Contingency Models of Leadership


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Model Focus Key ContingenciesHouse’s Path-Goal Theory

Leader Substitutes Model

Describes how effective leaders motivate their followers

Describes when leadership is unnecessary

The behaviours that managers should engage in to be effective leaders are contingent on the nature of the subordinates and the work they do.

Whether or not leadership is necessary for subordinates to perform highly is contingent on characteristics of the subordinates and the situation.

Table 9.2 | Contingency Models of Leadership(cont’d)


9-13Contingency Models of Leadership

Leadership that takes into account the variables in the situation and the context when leadership occurs.

Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation.

• Relationship-oriented: concerned with developing good relations with workers.

• Task-oriented: concerned that workers perform so the job gets done.


9-14Fiedler’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.


9-15Figure 9.3 | Fiedler’s Contingency Model

(adapted)

GOOD POOR

HIGH LO W HIGH LOW

S W S W S W S W

Leader-MemberRelations

TaskStructure

Position

PowerKinds of

LeadershipSituations Very

favourablesituation

VeryUnfavourable

situation

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.

Situ

atio

nal C

hara

cter

istic

s


9-16Using Fiedler’s ModelCan combine leader-member relations, task

structure, and position power to identify leadership situations.

• Identifies situations where given types of managers might perform best.

• Seen in Figure 9.3.

– Leader style is a characteristic managers cannot change. Thus, managers will be most effective when:

1) They are placed in leadership situations that suit their style.2) The situation can be changed to fit the manager.


9-17Hersey-Blanchard’s

Situational Leadership Theory (SLT)

• Situational leadership Model which focuses on followers readiness.– Leader should match behaviours to

employees’ ability and motivation• Unable and unwilling: give clear and specific directions• Unable but willing: high task orientation and high

relationship orientation• Able but unwilling: supportive and participative style• Able and willing: laissez-faire approach will work


9-18Path-Goal Theory

– 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.– Based on Expectancy Theory.


9-19Steps to Path-Goal

1) Determine the outcomes your subordinates are trying to obtain.

• Can range from pay to job security or interesting work.– Once outcomes determined, manager needs to be sure they have

the reward power to provide these.

2) Reward subordinates for high-performance and goal attainment with the desired outcomes.

3) Clarify the paths to goal attainment for workers, remove obstacles to performance, and express confidence in worker’s ability.


9-20Motivating with Path-goal

– Path-goal identifies four behaviours leaders can use:

1) Directive behaviours: set goals, assign tasks, show how to do things.

2) Supportive behaviour: look out for the worker’s best interest.3) Participative behaviour: give subordinates a say in matters

that affect them.4) Achievement-oriented behaviour: Setting very challenging

goals, believing in worker’s abilities.

– Which behaviour should be used depends on the worker and the tasks.


9-21Leader Substitute Model

– Leadership substitute: characteristics of subordinates or characteristics of the situation 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 teamsreduce leadership needs.

– Managers need to be aware that they do not always need to directly exert influence over workers.


9-22Transactional Leadership

Transactional leadership occurs when managers guide or motivate their subordinates in the direction of established goals. – Results

• Employees generally meet, but do not exceed performance goals

• Discourages innovation and initiative


9-23Transactional Leaders

Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.

Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.

Management by Exception (passive): Intervenes only if standards are not met.

Laissez Faire: Abdicates responsibilities, avoids making decisions.


9-24Transformational Leadership

– 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.


9-25Transformational Leaders

– Transformational leaders are charismaticand have a vision of how good things can be.

• They are excited and clearly communicate this to subordinates.

– Transformational leaders openly share information with workers.

• Everyone is aware of problems and the need for change. • Empowers workers to help with solutions.

– Transformational leaders engage in development of workers.

• Manager works hard to help them build skills.


9-26Transformational Leaders

Charisma: Provides vision and sense of mission, instills pride, gains respect and trust.

Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.

Intellectual Stimulation: Promotes intelligence, rationality, and careful problem-solving.

Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises.


9-27Table 9.4 | Transformational Leadership

Transformational Managers_________________________

• Are charismatic

• Intellectually stimulate subordinates

• Engage in developing consideration

Subordinates of Transformational Managers___________

• Have increased awareness of the importance of their jobs and high performance

• Are aware of their own needs for growth, development, and accomplishment

• Work for the good of the organization and not just their own personal benefit


9-28Table 9.5 | Key Characteristics of Charismatic Leaders

• Vision and articulation. Has a vision--expressed as an idealized goal -- that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others.

• Personal risk. Willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve the vision.

• Environmental sensitivity. Able to make realistic assessments of the environmental constraints and resources needed to bring about change.

• Sensitivity to follower needs. Perceptive of others' abilities and responsive to their needs and feelings.

• Unconventional behaviour. Engages in behaviours that are perceived as novel and counter to norms.


9-29Gender 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 tend to be more participative than men.


9-30Leadership 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.

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

Documents

Managing Leadership - NSCC Online Learning Homeaccess.nscc.ca/Business/Filestore/MGMT2020_1125/MGMT2000_PPT_… · Describe the early trait and behavioural theories of leadership