Chapter 1 LeadershipCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1 Chapter...

Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1

Chapter OneChapter One

Definition and Significance Definition and Significance of Leadershipof Leadership


Learning Objectives Learning Objectives

Define leadership and leadership effectiveness.

Explain why people need leadership.

Discuss the major obstacles to effective leadership.

Compare and contrast leadership and management.

List the roles and functions of leaders and managers.

Summarize the debate over the role and impact of leadership in organizations.


Some Famous Quotes Some Famous Quotes

“His ambition was a little engine that knew no rest” Abraham Lincoln’s law partner

“Those who stand for nothing fall for anything.” Alexander Hamilton

“If civilization is to survive, we must cultivate the science of human relationships—the ability of all people, of all kinds, to live together, in the same world at peace.” FDR

“Any fool can keep a rule. God gave him a brain to know when to break the rule.” General Willard W. Scott

“If you don’t know where you are going, you will probably end up somewhere else.” David Campbell, The Center for Creative Leadership

Myths that Hinder Leadership Development

• Good leadership is all common sense– “Common sense is the collection of

prejudices acquired by age 18.” – Albert Einstein

• Leaders are born, not made• The only school you learn leadership

from is the school of hard knocks.



Definition of LeadershipDefinition of Leadership

A leader is any person who influences individuals and groups within an organization, helps them in the establishment of goals, and guides them toward achievement of those goals, thereby allowing them to be effective


Key Elements of the Key Elements of the Definition of LeadershipDefinition of Leadership

Leadership is a group phenomenon

Leadership is goal-oriented; leaders guide and influence others

Leadership involves some form of hierarchy in groups


Critical ThinkingCritical Thinking

Who comes to mind as a leader?

Do these individuals have anything in common?

What made them effective?

Were there situations at that time that were instrumental in their emergence?


Key Elements of Key Elements of EffectivenessEffectiveness

The group achieves its goals

Financial goals, quality products)

The group functions well together; there are smooth internal processes

Group cohesion, follower satis

The group can adapt well to external changes

Effective vs. Successful ManagersEffective vs. Successful Managers

Effective Managers Satisfied followers Productive Focus on

communication Active conflict

management Motivate, train and

develop employees

Successful Managers Quick promotions Focus on networking Interact with outsiders Socialize Active in office politics


Effectiveness

• Affective subordinate reactions (e.g., satisfaction with and/or commitment to leader)

• Objective subordinate reactions (absenteeism, turnover)

• Group dynamics (e.g., cohesion, collaboration, cooperation)

• Performance – Objective (e.g., ROI, sales increase, stock,

profits)– Subjective



Why Do We Need Why Do We Need Leaders?Leaders?

To keep groups orderly

To keep focus on group goals

To accomplish complex tasks

To help make sense of the world by providing validation

As a romantic ideal


Obstacles to Effective Obstacles to Effective LeadershipLeadership

Environmental uncertainty

Organizational rigidity

Fall back on old ideas and simplistic solutions

Established organizational culture

Inaccessible research


Leadership and Leadership and ManagementManagement

Managers

Focus on the present

Maintain status quo

Implement policy

Maintain structure

Remain aloof and objective

Use position power

Leaders

Focus on the future

Create change

Initiate policy

Create culture and structure

Establish emotional link with followers

Use personal power


Managerial RolesManagerial Roles

Figurehead

Leader

Liaison

Monitor

Disseminator

Spokesperson

Entrepreneur

Disturbance

handler

Resource allocator

Negotiator


Gender Differences in Gender Differences in RolesRolesMale Managers Work at unrelenting

pace Wide variety of

tasks Frequent

interruptions Little time to

communicate Few non-work

activities Feeling of isolation Identity tied to work Complex network Prefer face-to face

Female Managers Calm steady pace Frequent breaks Did not perceive

interruptions Scheduled time for

communication Many non-work

activities Not isolated Multi-faceted

identity Complex network Prefer face to face


Leader’s Function in Leader’s Function in Shaping CultureShaping Culture

LEADERLEADER

OrganizationalCulture

OrganizationalCulture

Role Model

Reward System

Hiring Decisions

Strategy &Structure


Impact of Leadership: Impact of Leadership: Leadership Is Leadership Is InsignificantInsignificant Outside environmental factors affect

organizations more than leadership

Internal structure and strategy determine the course organizations take

Leadership accounts for only between 7% to 15% of performance

Leaders have little discretion to really make an impact

Leadership is a romantic myth rather than a real organizational factor


Impact of Leadership: Impact of Leadership: Leadership Is Leadership Is SignificantSignificant Leadership is one of many important

factors

Leadership is key to providing vision and direction

Leadership is critical in orchestrating change

Leadership can account for up to 44% of a firm’s profitability

Leadership is critical in orchestrating change

Leadership’s impact is moderated by situational factors


The Impact of The Impact of LeadershipLeadership

Leadership is one of many factors

Leadership is significant in providing vision and direction

Situations are key to understanding the impact of leadership

Followers are also key to success


New Roles for LeadersNew Roles for Leaders

Leader assumes responsibility

Plan

Lead

Control

DoResults

Control-oriented Leadership Result-oriented Leadership

Lead

ControlPlan

Do

ResultsResults

Leader and followerassume responsibility


Factors Fueling ChangeFactors Fueling Change

Changes in Organizations

and Leadership

WorldwidePolitical Changes

Demographic

Changes Employee

Expectations

Increased

Globalization


Diversity in U.S. Diversity in U.S. PopulationPopulation

75.1%

12.3%

2.4%5.5%0.1%

3.6%0.9%

White alone

Black alone

American Indian andAlaska Native alone

Asian alone

Native Hawaiian and otherPacific Islander alone

Some other race alone

Two or more races

Source: U.S. Census Bureau, Census 2000 http://www.census.gov/population/

http://www.census.gov/population/


U.S. Demographic U.S. Demographic TrendsTrends In 2000, 13% of population spoke a

language other than English

Women and minorities make up over half of the workforce

By 2016, minorities will be one third of the population

By 2025, Hispanics will outnumber African Americans

By 2025, the average age will be 40

By 2050, the average U.S. resident will be non-European


Barriers to ChangeBarriers to Change Perceived financial pressures

Short-term orientation

Top management still focused on one person

Traditional hierarchies

Employee input not fully considered

Focus on individual performance

Traditional management


Leadership ChallengeLeadership Challenge Challenges for new leaders

• Learning new duties

• New roles

• Maintaining relationships Actions that can help

• Training

• Clear message Actions to avoid

• Over managing - taking charge

• Trying to remain “one of the boys”


Leadership in Action:Leadership in Action:David NeelemanDavid Neeleman Quickly expanding airline

Small size; young fleet

Focus on treating people well

Neeleman provides vision and actively listens to followers

Focus on creativity and use of technology

Nimble and able to change


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Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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