Leadership

1. Leadership CHAPTER SEVENTEEN Management 3rd Edition Chuck Williams Prepared byDeborah BakerTexas Christian University

2. What Would You Do? You have been asked to accept the job as Xerox’s new CEO… • But, there couldn’t be a worsetime to take over • Xerox is in its worst shape in its history • You don’t know if you have what it takes What would you do as a leader? Can the company be turned around?

3. After reading the next two sections, you should be able to: • explain what leadership is. • describe who leaders are and what effectiveleaders do. What Is Leadership?

4. Leadership DifferencesBetweenLeaders andManagers SubstitutesforLeadership 1

5. MANAGERS Do things right Status quo Short-term Means Builders Problem solving LEADERS Do the right thing Change Long-term Ends Architects Inspiring & motivating Leaders versus Managers 1.1 Adapted from Exhibit 17.1

6. Substitutes for Leadership • Leadership substitutes • subordinate, task, or organizational characteristics that make leaders redundant or unnecessary • professional orientation, intrinsically satisfying work, cohesive work group, etc. • Leadership neutralizers • subordinate, task, or organizational characteristics that interfere with a leader’s actions • subordinate skills, abilities, unambiguous and routing tasks, intrinsically satisfying work, rewards not controlled by supervisor, etc. • Leaders don’t always matter 1.2

7. Leadership Substitutes and Neutralizers 1.2 Adapted from Exhibit 17.2

8. Who Leaders Are andWhat Leaders Do Leadership Traits Leadership Behavior 2

9. Desireto Lead HonestyandIntegrity Drive Knowledgeof theBusiness Leadership Self-Confidence EmotionalStability CognitiveAbility Leadership Traits 2.1

10. Traits and Perceptionsof Leadership Effectiveness Intelligence 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 75% Dominance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 57% Extroversion 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 63% What Really WorksLeadership Traits 2.1

11. Charisma and Leadership Effectiveness Charisma and Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 72% Charisma and Perceived Leadership Effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 89% Charisma and Leader Satisfaction 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 90% What Really WorksLeadership Traits 2.1

12. Leadership Behaviors • Initiating structure • clarifies follower roles and duties • job-centered or concern for production • Consideration • creating a supportive environment • employee-centered or concern for people 2.2

13. Been There Done That David Gergen discusses the role that leadership traits played in the success of U.S. presidents… • Trust is even more relevant for leaders now, and personal integrity is the bedrock • Leader and followers unite around a shared vision • Humility that conveys absolute assurance but acknowledges a leader’s equality can be inspiring

14. 9 1,9 Country Club Management Team Management 9,9 8 7 Middle of the 6 Concern for People 5,5 5 Road 4 3 2 Impoverished Management Authority-Compliance 1,1 9,1 1 1 2 3 4 5 6 7 8 9 Concern for Production Blake/Moulton Leadership Grid 2.2 Adapted from Exhibit 17.4

15. Situational Approaches to Leadership After discussing this section, you should be able to: • explain Fiedler’s contingency theory. • describe how path-goal theory works. • discuss Hersey and Blanchard’s Situational Leadership theory. • explain the normative decision theory.

16. GroupPerformance LeadershipStyle Situational Favorableness = Putting Leaders in the Right Situation:Fiedler’s Contingency Theory 3

17. Putting Leaders in the Right Situation:Fiedler’s Contingency Theory Least Preferred Coworker Situational Favorableness Matching Leadership Stylesto Situations 3

18. Leadership Style:Least Preferred Coworker • Leadership style is the way a leader generally behaves toward followers • seen as stable and difficult to change • Style is measured by the Least Preferred Co-worker scale (LPC) • relationship-oriented • task-oriented 3.1

19. Situational Favorableness • How a particular situation affects a leader’s ability to lead • Three factors • Leader-member relations • Task structure • Position power 3.2

20. Situational Favorableness 3.2 Adapted From Exhibit 17.7

21. Task- Oriented Leaders Good Relationship- Oriented Leaders Poor Matching Leadership Styles to Situations 3.3 Adapted From Exhibit 17.8

22. 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 Path-Goal Theory 4 Adapted From Figure 17.10

23. Leadership Styles Subordinate andEnvironmental Contingencies Outcomes Adapting Leader Behavior:Path-Goal Theory 4

24. Leadership Styles • Directive • clarifying expectations and guidelines • Supportive • being friendly and approachable • Participative • allowing input on decisions • Achievement-Oriented • setting challenging goals 4.1

25. Subordinate Environmental • Perceived ability • Locus of control • Experience Subordinate and Environmental Contingencies • Task structure • Formal authority system • Primary work group 4.2

26. Path Goal Theory:When to Use Leadership Styles 4.2 Adapted from Exhibit 17.11

27. Adapting Leadership Behavior:Hersey and Blanchard’s Situational Leadership Theory WorkerReadiness Leadership Styles 5

28. Worker Readiness • The ability and willingness to take responsibility for directing one’s behavior at work • Components of worker readiness: • Job readiness • Psychological readiness 5.1

29. R4 confident willing able R3 insecure not willing able R2 confidentwilling not able R1 insecure not able not willing Worker Readiness 5.1

30. Leadership Styles Telling(R1) high task behavior low relationship behavior Selling(R2) high task behavior high relationship behavior Participating(R3) low task behaviorhigh relationship behavior Delegating(R4) low task behaviorlow relationship behavior 5.2

31. Adapting Leader Behavior:Normative Decision Theory DecisionStyles Decision Quality and Acceptance 6

32. AI AII CI CII GII Share problem with group, get ideas. Make decision, which may or may not reflect input. Share problem, get ideas from individuals. Select a solution yourself. Share problem with group. Together tries to reach a solution. Leader acts as facilitator. Solve the problem yourself Obtain information. Select a solution yourself. Decision Styles 6.1 Adapted from Exhibit 17.12

33. Decision Quality and Acceptance • Using the right amount of employee participation: • improves decision quality • improves acceptance • Decision tree helps leader identify optimal level of participation 6.2

34. Normative Theory Decision Rules • Quality Rule • If the quality of the decision is important, then don't use an autocratic decision style • Leader Information Rule • If the quality of the decision is important, and if the leader doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style • Subordinate Information Rule • If the quality of the decision is important, and if the subordinates don't have enough information to make the decision themselves, then don't use a group decision style More 6.2

35. Normative Theory Decision Rules • Goal Congruence Rule • If the quality of the decision is important, and subordinates' goals are different from the organization's goals, then don't use a group decision style • Problem Structure Rule • If the quality of the decision is important, the leader doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style More 6.2

36. Normative Theory Decision Rules • Commitment Probability Rule • If having subordinates accept and commit to the decision is important, then don't use an autocratic decision style • Subordinate Conflict Rule • If having subordinates accept the decision is important and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style More 6.2

37. Normative Theory Decision Rules • Commitment Requirement Rule • If having subordinates accept the decision is absolutely required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style 6.2

38. Strategic Leadership After reading the next section, you should be able to: • explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership.

39. CharismaticLeadership TransformationalLeadership Visionary Leadership 7

40. 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 7.1

41. 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 • only want positive feedback • motivated by self-interest 7.1

42. Charismatic Leader Behaviors Unethical Charismatics Ethical and Unethical Charismatic Leaders Power is used to dominate others Exercising Power Vision comes solely from the leader Creating the vision Communicating with followers One-way communication, not open to input from others Accepting feedback Prefer yes-men, punish candid feedback Stimulating followers Don’t want followers to think, prefer uncritical acceptance of own ideas Developing followers Insensitive to followers’ needs Living by moral standards Follow standards only if they satisfy immediate self interests 7.1

43. Reducing Risks of Unethical Charismatics • Have a clearly written code of conduct • Recruit, select, and promote managers with high ethical standards • Train leaders how to value, seek, and usediverse points of view • Celebrate and reward those who exhibit ethical behaviors 7.1

44. Generates awareness and acceptance of group’s purpose and mission Gets employees to see beyond their own needs and self-interest Goes beyond charismatic leadership Different than transactional leadership Transformational Leadership Transformational

45. Transactional Leadership Transactional • Based on exchange process • Uses rewards and punishment for motivation • Relies too heavily on discipline and threats to improve performance • Not as effective as transformational leadership

46. Components of Transformational Leadership • Charismatic leadership or idealized influence • Inspirational motivation • Intellectual stimulation • Individualized consideration 7.2

47. What Would You Do—II? You are the CEO of Unique Restaurant… • Your success is based on your reputation and your staff • But, business is down and employee benefits expenses are increasing • You have three options: eliminate health benefits, find a cheaper plan, or pass the cost to the employee How can you best make the tough decision?How involved should your employees be in making it?