Chapter 17
description
Transcript of Chapter 17
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Chapter 17
Leadership
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What Would You Do? Leadership: Dealing with Tragedy Sandler O’Neill & Partners, L.P. is Investment
banking firm located in World Trade Center on September 11
Top leaders are lost in the tragedy Can new leadership help the firm survive this
catastrophic event?
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After discussing this section, you should be able to:
Learning ObjectivesWhat Is Leadership?
1. explain what leadership is 2. describe who leaders are and what effective
leaders do
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Leadership
Leaders versus ManagersLeaders versus Managers
Substitutes for LeadershipSubstitutes for Leadership
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Managers versus Leaders
• Do things right• Status quo• Short-term• Means• Builders• Problem solving
• Do the right thing• Change• Long-term• Ends• Architects• Inspiring & motivating
Managers Leaders
Adapted from Exhibit 17.1
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Substitutes for Leadership: Do Leaders Always Matter? 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
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Leadership Substitutes & NeutralizersCharacteristic People-Related
Leadership BehaviorsTask-Related
Leadership BehaviorsSubordinate Characteristics Ability, experience, training, knowledge Need for independence Professional orientation Indifference toward organizational rewards
NeutralizeNeutralizeSubstitute, NeutralizeNeutralize
Substitute, NeutralizeNeutralizeSubstitute, NeutralizeNeutralize
Task Characteristics Unambiguous and routine tasks Performance feedback provided by the
work itself Intrinsically satisfying work
No effectNo effect
Substitute, Neutralize
Substitute, NeutralizeSubstitute, Neutralize
NeutralizeOrganizational Characteristics Formalization, meaning specific plans,
goals, and areas of responsibility Inflexibility, meaning rigid, unbending rules
and procedures Highly specified staff functions Cohesive work groups Organizational rewards beyond a leader's
control Spatial distance between supervisors and
subordinates
No effect
No effect
No effectSubstitute, NeutralizeNeutralize
Neutralize
Neutralize
Neutralize
NeutralizeSubstitute, NeutralizeNeutralize
Neutralize
Adapted from Exhibit 17.2
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Who Leaders Are and What Leaders Do
LeadershipLeadershipBehaviorBehavior
LeadershipLeadershipTraitsTraits
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Leadership Traits
Desire toLead
CognitiveAbility
EmotionalStability
Drive
Honesty/Integrity
Self-confidence
Knowledgeof the
Business
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What Really Works?
Dominance10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success 57%
Probability of success 63%
Extroversion
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Probability of success 75%
Traits & Perceptions of Leadership Effectiveness
Intelligence
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What Really Works? (cont’d)
Charisma & Perceived Leader Effectiveness10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success 89%
Probability of success 90%
Charisma & Leader Satisfaction
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Probability of success 72%
Charisma & Leadership Effectiveness
Performance & Charisma
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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
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Blake/Mouton Leadership Grid 1,91,9 Country Club Country Club
ManagementManagement9,9 9,9 Team Team
ManagementManagement
1,11,1Impoverished Impoverished ManagementManagement 9,19,1
Authority-Authority-ComplianceCompliance
5,55,5
Middle of theMiddle of the
RoadRoad
1 2 3 4 5 6 7 8 91
2
3
4
5
6
7
8
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Concern for ProductionConcern for Production
Con
cern
for P
eopl
eC
once
rn fo
r Peo
ple
Adapted from Exhibit 17.4
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After discussing this section, you should be able to:
Learning ObjectivesSituational Leadership
3. explain Fiedler’s contingency theory. 4. describe how path-goal theory works.5. explain the normative decision theory
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Putting Leaders in the Right Situation: Fiedler’s Contingency TheoryLeadership Style:Leadership Style:
Least PreferredLeast PreferredCo-workerCo-worker
SituationalSituationalFavorablenessFavorableness
Matching LeadershipMatching LeadershipStyles toStyles to
SituationsSituations
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Fiedler’s Contingency Theory
GroupGroupPerformancePerformance
=
SituationalSituationalFavorablenessFavorableness
Leadership StyleLeadership Style
Adapted from Exhibit 17.5
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Leadership Style: Least Preferred Co-Worker 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
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Situational Favorableness
How a particular situation affects a leader’s ability to lead
Three factors Leader-member relations Task structure Position power
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Situational Favorableness
Leader-MemberRelations
Good Good Good Good Poor Poor Poor
TaskStructure
High High Low Low High High Low
PositionPower
Strong Weak Strong Weak Strong Weak Strong
Situation I II III IV V VI VIIFavorable Moderately Favorable Unfavorable
Adapted From Exhibit 17.7
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Leader-MemberRelations
Good Good Good Good Poor Poor Poor
TaskStructure
High High Low Low High High Low
PositionPower
Strong Weak Strong Weak Strong Weak Strong
Situation I II III IV V VI VIIFavorable Moderately Favorable Unfavorable
Matching Leadership Styles to Situations
GoodTask-OrientedLeaders
PoorRelationship-OrientedLeaders
Adapted From Exhibit 17.8
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Adapting Leader Behavior: Path-Goal Theory
Four LeadershipFour LeadershipStylesStyles
SubordinateSubordinateandand
EnvironmentalEnvironmentalContingenciesContingencies
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Path-Goal Theory
Leadership Styles• Directive• Supportive• Participative• Achievement-Oriented
Adapted From Figure 17.10
Environmental Contingencies• Task Structure• Formal Authority System• Primary Work Group
Subordinate Contingencies• Perceived Ability• Locus of Control• Experience
Outcomes• Subordinate Satisfaction• Subordinate Performance
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Leadership Styles Directive
clarifying expectations and guidelines Supportive
being friendly and approachable Participative
allowing input on decisions Achievement-Oriented
setting challenging goals
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Subordinate & Environmental ContingenciesSubordinate Perceived ability Locus of control Experience
Environmental Task structure Formal authority
system Primary work group
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When to Use Each of the Four Leadership Styles
Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of
control Unclear formal authority system
Structured, simple, repetitivetasks
Stressful, frustrating tasks When workers lack confidence Clear formal authority system
Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived
ability Workers with internal locus of
control Workers not satisfied with rewards Complex tasks
Unchallenging tasks
Adapted from Exhibit 17.11
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Adapting Leader Behavior: Normative Decision Theory
DecisionDecisionStylesStyles DecisionDecision
Quality andQuality andAcceptanceAcceptance
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StyleStyle Explanation Explanation
AI - AutocraticAI - Autocratic Solve the problem yourself using the information Solve the problem yourself using the information you have.you have.
AII - Less autocraticAII - Less autocratic Obtain the needed information from workers; then Obtain the needed information from workers; then solve the problem yourself. Workers provide solve the problem yourself. Workers provide information but not alternatives.information but not alternatives.
C1- ConsultativeC1- Consultative Share the problem with workers individuallyShare the problem with workers individually(but not as a group), seeking suggestions &(but not as a group), seeking suggestions &possible alternatives. Solve the problem yourself.possible alternatives. Solve the problem yourself.
CII - More consultativeCII - More consultative Share the problem with workers as a group, seeking Share the problem with workers as a group, seeking suggestions & possible alternatives. Solve yourself.suggestions & possible alternatives. Solve yourself.
GII - Group decisionGII - Group decision Share the problem with workers as a group,Share the problem with workers as a group,seeking suggestions & possible alternatives.seeking suggestions & possible alternatives.Attempt to reach a consensus & be willing to Attempt to reach a consensus & be willing to accept & implement the workers’ solution.accept & implement the workers’ solution.
Decision Styles
Adapted from Exhibit 17.12
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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
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Decision Rules to Increase Decision Quality
Quality RuleQuality Rule If the quality of the decision is important, then don't use
an autocratic decision style Leader Information RuleLeader 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 RuleSubordinate 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
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Decision Rules to Increase Decision Quality (cont’d) Goal Congruence RuleGoal 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 RuleProblem 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
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Decision Rules to Increase Decision Acceptance
Commitment Probability RuleCommitment Probability Rule If having subordinates accept and commit to the
decision is important, then don't use an autocratic decision style
Subordinate Conflict RuleSubordinate 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
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Decision Rules to Increase Decision Acceptance (cont’d) Commitment Requirement RuleCommitment 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
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After discussing this section, you should be able to:
Learning ObjectivesStrategic Leadership
6. explain how visionary leadership (i.e. charismatic and transformational leadership) helps leaders achieve strategic leadership.
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Visionary Leadership
CharismaticCharismaticLeadershipLeadership
TransformationalTransformationalLeadershipLeadership
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Charismatic Leadership
Creates an exceptionally strong relationship between leader and follower
Lead by: articulating a clear vision, based on values role modeling values communicating high performance expectations displaying confidence in followers
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Been There, Done That
Content employees produce happy customers
Keeps offices at 50 people Encourages and rewards risk taking and
creativity
Richard Branson: Charisma without Hot Air
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Types 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
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Ethical and Unethical CharismaticsExercising Power Power is used to serve othersCreating the vision Followers help develop the visionCommunicating with followers
Two-way communication
Accepting feedback Open to feedbackWant followers to think and to questions the status quo
Stimulating followers
Developing followers Focus on developing followersLiving by moral standards
Three virtues: courage, sense of fairness, integrity
Charismatic Leader Charismatic Leader BehaviorsBehaviors
Ethical CharismaticsEthical Charismatics
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Ethical and Unethical CharismaticsExercising Power Power is used to dominate othersCreating the vision Vision comes solely from the leaderCommunicating with followers
One-way communication, not open to input from others
Accepting feedback Prefer yes-men, punish candid feedbackDon’t want followers to think, prefer uncritical acceptance of own ideas
Stimulating followers
Developing followers Insensitive to followers’ needsLiving by moral standards
Follow standards only if they satisfy immediate self interests
Charismatic Leader Charismatic Leader BehaviorsBehaviors
Unethical CharismaticsUnethical Charismatics
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Transformational Leadership
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
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Transformational Leadership Components Charismatic leadership/idealized influence Inspirational motivation Intellectual stimulation Individualized consideration
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What Really Happened? Leadership: Dealing with Tragedy Deceased employees’ families
given pay check for the rest of the year insurance coverage for five years
Jimmy Dunne became manager and provided leadership that led to strong financial recovery developed new skills in negoti- ation,
calmness, patience, sup- port, while maintaining strong business focus