Chapter 7

1. Chapter 7 Leading Effectively

2. Steve Jobs The Challenge of Leadership • Steve Jobs has been called “a classic comeback kid” and “the Lazarus of the PC world.” Jobs and his friend, Steve Wozniak, founded Apple Computer in Jobs’ father’s garage in the 1970s. • Jobs had a passionate vision, but had no management training, no business skills, and his style wasn’t suited to building a stable corporation; he was ousted from Apple in 1985, his reputation apparently forever tarnished. • Since then, Jobs founded NeXT, bought Pixar Animation Studies and made it a powerhouse, and is again CEO of Apple. Some still wonder if Jobs is what Apple needs now. • The realization that some leaders -- like Steve Jobs -- have bounced back and forth between success and failure illustrates the difficulty of defining what makes a leader successful.

3. What is Leadership? Leadership is the ability to influence others toward the achievement of goals

4. Leadership and Management • Leadership may sound like another name for management, but the terms are generally viewed as distinct. • Management aims to give consistency and order to organizations; leadership seeks to provide constructive and adaptive change. • Management is directed toward coordinating activities in order to get the job done; leadership is concerned with the process of developing mutual purposes. • Management relies more on a one-way authority relationship, while leadership relies more on a multidirectional influence relationship. • “Managers are people who do things right and leaders are people who do the right things.”

5. “Old Look” “New Look” Traits Behaviors Universal Situational One-Way Influence Reciprocal Influence Uniform Dyadic Leading Subordinates Leading Everyone Transactional Transformational The Changing Look of Leadership(Figure 7-1)

6. Emerging Perspectives on Leadership • While early leadership approaches emphasized the traits of successful leaders -- who they are -- newer approaches ask how successful leaders behave -- what they do. • Early approaches to leadership tended to take a universalistic perspective, asking, “What works?” Newer approaches, recognizing that characteristics of the situation, such as followers’ needs and skills and various aspects of the task must be considered, ask, “What works when?” • Early approaches considered primarily one-way influence, how a leader influences followers. Newer approaches recognize that the influence process is reciprocal -- just as leaders are influencing followers, followers are influencing leaders.

7. Emerging Perspectives on Leadership (Continued) • While early approaches tended to assume that leaders treat their various followers in similar ways, more recent approaches recognize that leaders may -- for good or bad reasons -- treat different followers differently. • While leadership approaches initially focused on the relationship of leaders to their subordinates, modern views are more inclusive; the “others” whom leaders influence may sometimes be team members or even hierarchical superiors. • Most early approaches to leadership tended to consider how a leader might influence others through a series of transactions. Newer approaches look more broadly at how leaders take actions to transform followers and organizations.

8. Lighten Up: The Link to Links • A recent study of golfing and leader effectiveness conducted by the New York Times compared golf handicaps of corporate heads to their companies’ stock market performance over three years. • The lower (better) the leader’s golf handicap, the better his or her company’s performance. • Perhaps natural leaders also tend to be natural athletes. • Perhaps perseverance and high need for achievement pay off in both golf and business. • Perhaps early life experiences -- such as caddying for executives -- build business skills while providing exposure to business banter.

9. Web Wise: The 20 Most InfluentialLeaders of the 20th Century • With the coming of the new millennium, Time magazine selected and profiled “100 remarkable people … who -- for better or worse -- most influenced the last 100 years.” • They were considered in their fields of endeavor. For the profiles of the 20 most influential leaders and revolutionaries, go to: • http://www.time.com/time/time100/

10. Leader Traits • The earliest approach to the study of leadership was to try to identify characteristics, or traits, of successful leaders. • Literally thousands of studies have now explored leadership traits. • Of the traits, activity, intelligence, knowledge, dominance, and self-confidence are most often found to be linked to leader success. • Unfortunately, most reviews of studies relating to leadership traits have concluded that the trait approach has not been fruitful. • Very few traits show up consistently across studies. • Also, since traits are relatively stable, it is unlikely that leaders can develop them through training. • So, attention has shifted from what successful leaders are to what they do.

11. Leaders aren’t born, they are made. And they are made just like anything else, through hard work.”-- Vince Lombardi

12. Developing and Using Power Bases • We defined leadership as the ability to influence others toward the achievement of goals. • But what exactly is influence? • How does influence relate to things such as authority, power, and control? • How does a leader gain the ability to influence?

13. Defining Terms • Authority: The right to influence (that is, exert force on) others. It is conferred by the organization. • Power: The ability to influence others. People in organizations may have power without authority, and authority without power. • Influence: The exertion of force on others. Influence is power put into action; power is latent influence. • Control: The exertion of enough force to change others’ behaviors. We may have a lot of power and exert a lot of influence without getting people to do what we want.

14. The Nature of Power • Latent. Power is something that people have and may or may not choose to use. It is a weapon or tool; it may never be used, and just having it may makes its use unnecessary. • Relative. The power one person has over another depends largely on things such as the expertise of one person relative to another and the hierarchical level of one relative to the other; a manager may have considerable power relative to one person and little or none relative to another. • Perceived. Power is based on one person’s belief that another has certain characteristics. If I believe you have power over me, you’ve got it! • Dynamic. Power relationships evolve over time as individuals gain or lose certain types of power relative to others.

15. Uses of Power • Power over: This is power used to make another person act in a certain way; it may be called dominance. • Power to: This is power that gives others the means to act more freely themselves; it is sometimes called empowerment. • Power from: This is power that protects us from the power of others; it may be called resistance.

16. Forms of Compliance to Power • Coercive power involves forcing someone to comply with our wishes. • With utilitarian power, compliance results from desires for rewards. • Normative power rests on the employees’ belief that the organization has the right to govern their behavior.

17. Bases of Power • If we’re going to use power, we first have to get it. • Traditionally, a distinction has been made between how people get power (termed interpersonal power bases) and how organizational subunits get power (termed subunit power bases). • We’ll retain this distinction for now. However, the distinction is murky: people may use the so-called subunit power bases, and groups or subunits may use the so-called interpersonal power bases.

18. Interpersonal Power Bases • Legitimate: Based on one person’s belief that it is legitimate, or right, for another to give orders or otherwise exert force. • Reward: Based on one person’s perception that another can influence the rewards s/he receives. • Coercive: Based on one person’s perception that another can influence the punishments s/he receives. • Referent: Based on a feeling of identity, or oneness, that one person has for another, or the desire for such identity. • Expert: Based on one person’s perception that another has needed expertise in a given area.

19. COERCIVE POWER REFERENT POWER REWARD POWER EXPERT POWER LEGIT. POWER Interaction of Bases of Power

20. Guidelines for Ethically Attaining and Using Interpersonal Power (From Figure 7-2)

21. Resource Dependence Approach • One source of subunit power is the ability to control the supply of important resources required by other subunits. • According to the resource dependence approach, those subunits that obtain the most critical and hard-to-get resources acquire the most power because of the dependencies that are developed.

22. Strategic Contingencies Approach According to the strategic contingencies approach, a unit’s power is based on three things: • The ability to cope with uncertainty. • Centrality in the flow of information and work between units. Units are more central if they have an immediate effect on the organization or an impact on most other units. • Nonsubstitutability. The harder it is for another unit to perform the activities of this unit, the more power this unit has.

23. Ability to Reduce Uncertainty Organizational Centrality Degree to Which Activities are Nonsubstitutable The Strategic Contingencies Model(Figure 7-3) Subunit Power

24. Signs of Power Some signs of power include the abilities to: • intercede favorably on behalf of someone in trouble • get a good placement for a subordinate • get approval for expenditures beyond the budget • get above-average salary increases for subordinates • get items on the agenda at policy meetings • get fast access to top decision makers • get regular, frequent access to top decision makers • get early information about decisions and policy shifts

25. Global Perspectives:Signs of Power in Japan • Signs of power may vary from one nation to another. • For example, in Japanese organizations the appearance of equality is an important cultural value. • Because of this, salary, rank, and office space may have little to do with power. • Instead, power can be gauged by studying patterns of interaction. • Power flows from expertise, and those with power can be identified because others consult with them.

26. Social Influence Approaches • Social influence is the use of power in social relationships. • People use a remarkable variety of tactics when attempting to influence others. • Managers like to use participation, rational persuasion, and inspirational appeals to influence others. • Tactics such as use of pressure and formation of coalitions are less popular. • Promising something in return for compliance is an influence tactic of last resort; it’s costly and may create expectations that there will always be rewards for compliance.

27. Social Influence Tactics(Figure 7-4)

28. Rational Persuasion • One way to get what you want is to make a compelling, persuasive argument. • Persuasive communicators are well liked and eloquent and have high credibility. • They gain credibility by their apparent expertise and by giving the impression that their motives are honorable. • Persuasive messages are clear and are moderately inconsistent with the message receiver’s attitudes; a message that is entirely consistent with the receiver’s attitudes makes no difference, while a message that is totally inconsistent is likely to be rejected out of hand.

29. Liking and Ingratiation • We’re more willing to do something for people we like. • Liking may be based on such things as: • physical attractiveness • compliments and flattery • contact and cooperation • association with other positive things • social similarity • Because people like others who are similar to them, there may be resulting, unconscious bias against people who are different.

30. Emotional Appeals • Friendly emotions are a useful influence approach. • Negative or unpleasant emotions can also be tools of social influence, especially when the person displaying the emotions has more power than the target of the influence. • Emotional contrast can be helpful; the presence of a nasty person makes a warm and friendly person seem even warmer and friendlier, and makes compliance with this person’s requests more likely.

31. Social Proof • Another way to get people to take some action is by convincing them that others are taking the same action; this is called social proof. • The fact that others are doing something suggests that it is appropriate and socially acceptable. • Bartenders who salt tip jars with a few dollar bills at the beginning of the evening and producers of charity telethons who spend much of their time listing viewers who have already contributed are exploiting social proof.

32. Choosing from Among Social Influence Approaches • People prefer some influence approaches, such as participation, to others, such as promising something in return for compliance. • People also select influence approaches to fit the situation. • Individuals responding to authoritarian managers tend to use approaches such as blocking and ingratiation, while those responding to participative managers are more likely to rely on rational persuasion. • Employees also use different influence approaches with their superiors depending on the goals they are seeking. When they are trying to secure personal benefits they tend to use ingratiation, and when they are trying to secure organizational goals they use a broader array of influence tactics.

33. Social Influence and Type of Involvement • Compliance occurs when people do something because they don’t want to bear the costs of not doing it. • Identification results when influence flows from a person’s attractiveness. • Internalization takes place when we do something because we believe it is “the right thing to do.”

34. Black Elk Washakie Sitting Bull Web Wise: Native American Leaders • The website of the Indigenous Peoples’ Literature includes profiles of many native American great chiefs and leaders. The profiles provide rich insights into the wide range of traits, behaviors, and motivations of those leaders. • http://www.indians.org/welker/leaders.htm

35. Lower Degree of Participation Autocratic Autocratic Democratic Autocratic and Democratic Styles(Figure 7-5)

36. Autocratic and Democratic Styles • Autocratic leaders make decisions themselves, without inputs from subordinates. Democratic leaders let subordinates participate in decision making. • Democratic style is consistently linked to higher levels of subordinate satisfaction. • Democratic style is usually positively, but weakly, related to productivity. • This weak link of democratic style to performance may be because many factors determine whether a democratic style is appropriate, including the nature of the tasks and the characteristics of subordinates.

37. Autocratic and Democratic Styles(Continued) • When tasks are simple and repetitive, participation has little effect, because “there is little to participate about.” • When subordinates are intelligent and desire independence, participation is especially important. • Participation is empowering and satisfying, and it generates enthusiasm for the decisions that are reached. • Participation takes time, and people sometimes don’t like to participate, especially if they care little about the decision. • Since leaders may give more productive followers more responsibility, the relationship between democratic style and performance could be due to the impact of performance on style rather than vice versa.

38. Consideration and Initiating Structure • Effective leaders show concern for both the task and the people they leader. Without concern for task, the job won’t get done. Without concern for people, satisfaction, motivation, and team spirit will suffer and performance will ultimately suffer. • Two sets of leader behaviors -- consideration and initiating structure -- address these concerns. • Consideration and initiating structure are not conflicting sets of behaviors. Skillful leaders should be able to exhibit both sets of behaviors, and they should use those behaviors as needed.

39. Consideration and Initiating Structure(Continued) • Consideration is behavior that shows friendship, mutual trust, respect, and warmth. Considerate leaders are friendly and approachable, look out for the personal welfare of team members, back up the members in their actions, and find time to listen to them. • Initiating structure is behavior that helps clarify the task and get the job done. Initiating leaders provide definite standards of performance, set goals, organize work, emphasize meeting deadlines, and coordinate the work of team members.

40. Consideration Treats all work unit members as his or her equal Is friendly and approachable Does little things to make work pleasant Puts suggestions made by the work unit into operation Looks out for personal welfare of work unit members Initiating Structure Lets work unit members know what is expected of them Schedules the work to be done Encourages the use of uniform procedures Assigns work unit members to particular tasks Makes his or her attitudes clear to the group Sample Items To Measure Considerationand Initiating Structure

41. High Consideration Low Initiating Structure Low High Consideration and Initiating Structure(Figure 7-6)

42. Focus on Management: Recycling Peopleat Omni Computer Products • Gerald Chamales is founder, President, and CEO of Omni Computer Products. • Chamales provides an example of a leader who cares about his employees as well as profit. • A college dropout and recovering drug and alcohol abuser who spent six months in a psychiatric facility and then bottomed out as a homeless youth 25 years ago, Chamales now recycles both people and laser cartridges. • A full third of his 250 employees, including managers, are drawn from the welfare rolls and halfway houses of Los Angeles. • Chamales demands that those with drug or alcohol problems have 30 days of sobriety in a treatment program, and he then gives them training, motivational seminars, mentoring, and even loans.

43. Lighten Up: Bosses from Hell • In his Dilbert cartoons, Scott Adams lambastes “pointy-headed” bosses who are amazingly insensitive, unqualified, vindictive, fail to deliver on promises, or are simply clueless. • Here are some actual bad bosses from”best boss/worst boss” contests: • An elderly engineer passed away at his desk at approximately 3 o’clock. The boss told office workers not to call 911 until 5 o’clock because it would disrupt the routine and be unproductive. • A boss told a programmer, “Give me a list of the unknown bugs in this system.” • A supervisor for a Fortune 500 chemical manufacturer would announce at 3 p.m. that he was leaving early, say his good nights, and leave, only to sneak up the back stairway to hide in the supply closet with the lights off to spy on employees for two hours.

44. Path-Goal Theory • The theory is called path-goal because its major concern is how the leader influences the followers’ perceptions of their work goals, personal goals, and paths to goal attainment. • The theory suggests that a leader’s behavior is motivating or satisfying to the degree that the behavior increases follower goal attainment and clarifies the paths to these goals.

45. Leader Motivational Functions in Path-Goal Theory • The leader can increase valences associated with work-goal attainment. • The leader can increase instrumentalities of work-goal attainment for the acquisition of personal outcomes. • The leader can increase the expectancy that effort will result in work-goal attainment.

46. Some Contingency Factors in the Path-Goal Theory • Some task contingency variables: • degree of structure • degree to which the task is intrinsically satisfying • degree to which the task provides feedback concerning accomplishment • Some follower contingency variables: • need for independence • ability, experience, training • “professional” orientation

47. Subordinate Characteristics • Clarification of • Paths to Goals • Increased Goal • Attainment • Subordinate • Responses: • Motivation • Performance • Satisfaction Task Characteristics Elements of Path-Goal Theory(Figure 7-7) • Leader Behaviors: • Directive • Supportive • Participative • Achievement- • Oriented

48. Identify Task and Employee Needs Match Appropriate Leader Behavior to the Situation If This Does Not Work, Replace the Leader If This Does Not Work, Train the Leader to Change His/Her Behavior Change Leader Behavior If It Does Not Match the Situation The Bottom Line:Applying Path-Goal Theory Assess the Situation

49. Some Leadership Substitutes and Neutralizers(From Figure 7-8)

50. http://www.nwlink.com/-donclark/leader/leader.html Web Wise: Big Dog’s Leadership Page • Big Dog’s Leadership Page is part of the website called Big Dog’s Bowl of Biscuits. • The Bowl of Biscuits site contains information on training, leadership, and performance, as well as Big Dog’s Library and other information. • The Leadership Page provides information “for new supervisors, managers, leads, and anyone wishing to move up through the ranks as a leader.”