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Chapter 5Organizational Factors
Leadership Styles, power bases and Structure
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Role of Leadership Leadership is the ability or authority to guide and
direct others toward achievement of a goal.
Important leaders
CEOs and topmanagement
Boards of Directors
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The Role of Leadership in
Corporate Culture
Leadership is the ability orauthority to guide and directothers toward achievement ofa goal.
Leaders are key to influencingan organizations corporateculture and ethical posture.
Leadership styles influencemany aspects of organizationalbehavior, including employeesacceptance of and adherence toorganizational norms andvalues.
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Leadership Styles
Coercive leaders
Visionary leaders
Affiliative leaders
Democratic leaders
Pacesetting leaders
Coaching leaders
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Leadership styles by Daniel Goleman
Coercive Visionary Affiliative
The leader's Characteristic - Demands immediate
compliance
- threatening, tight control,
drives away talent
Mobilizes people towards a
vision
- Creates harmony and
builds emotional bonds
- Creates harmony by
connecting people to
each other
The style in a phrase: Do what I tell you come with me People come first
When the style works best: In a crisis, to kick start a
turnaround, or with
problem employeesSoothes fear by giving
direction in emergency
When changes require a
new vision or a clear
direction is needed
To heal rifts in a team or to
motivate people during
stressful circumstances
Overall impact on climate: Negative Most strongly positive positive
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Democratic Pacesetting Coaching
The leader's modus
operandi:-Forges consensus through
participation-Superb listener, team
leader-Values input and gets
commitment through
participation
-Sets high standard of
performance
-builds challenge and exciting
goals for people-low on guidance, expecting
people to know what to
do.
Develops people for the
future
-helping people find
strengths and
weaknesses
-good at delegating
challenging
assignments,
The style in a phrase: What do you think? Do as I do, now Try this
When the style works best: To build buy-in or
consensus, or to get
input from valuable
employees
To get quick results from a
highly motivated and
competent team
To help employee improve
performance or develop
long-term strengths
Overall impact on climate: Positive Negative Positive
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Leadership
The most successful leaders do not rely on onestyle of leadership but alternate their techniquebased on the characteristics of the situation.
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Power bases
Power-ability to influence the behavior/attitudeof another
Exerting power is one way to influence ethicaldecision making framework
Power in itself is neither ethical or unethical, its
use can raise ethical issues
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Coercive Use of threats/actual punishment to influence
others Penalize actions Beneficial in changing behavior in short run Overuse may result in de-motivation,
breakdown of relationships, resistance
Reward Influence behavior by offering something
desirable
E.g. money, promotion, non monetary rewards Rigid reliance on rewards may force employees
to indulge in unethical practices
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Legitimate Right to exercise authority
Position related Strong affiliation to legitimate power may lead to
employees unethical behavior
Expert Derived from having high level of knowledge,specialized skill
Power may be accorded on basis of greaterknowledge, years of experience, education, honours
received Creates ethical problems when knowledge is used
to manipulate others
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Referent
Function of respect and esteem accorded to anindividual by virtue of personal attributes withwhich others identify
Can be used to create an atmosphere whichmotivates workers and improves productivity
effective: when empathy and trust exist betweenboss and employee
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Centralized Structure
- If organization is very bureaucratic, employeesbehave according to letter of law rather than spirit
- Ethical concerns arise due to little upwardcommunication. Top managers are seldom aware ofproblems and unethical activity. E.g. sweatshops
- Blame shifting or scapegoating because due to high
specialization there is a lack of connectedness due towhich employees fail to understand affect of actionson the overall organization
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Due to strict formalization and adherence torules they tend to be more ethical in their
practices
Can exert more influence on employees due topolicies and codes of ethical conduct
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Decentralized
-Different value systems may evolve in differentsub units
-Difficulty in responding quickly to changes inpolicy and procedure made by top management
+Can avoid ethical dilemma by tailoring their
decisions to specific situations, laws and valuesof a particular community
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