Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1 Chapter 7 Other Leadership...

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1

Chapter 7

Other Leadership Perspectives: Upper Echelon and Leadership of Non-Profits


Learning Objectives

Differentiate between micro and upper-echelon leadership

Describe the domain and roles of strategic leaders in the management of an organization

Identify the external and internal factors that impact strategic leaders’ discretion

List the individual characteristics of strategic leaders and their impact on leadership style

Contrast the four strategic leadership types and discuss the role of culture and gender in strategic leadership

Explain the processes through which strategic leaders manage their organization

Review issues of executive compensation and accountability

Describe the characteristics and challenges of leadership in nonprofit organizations


Factors that Differentiate Micro and Macro Leadership

Who the leader is

Scope of responsibility

Focus

Effectiveness criteria


The Domain of Strategic Leaders

Structure

Environment

Strategy

Leadership

Technology Culture

StrategicLeadership


Dual Role of Strategic Leaders

LeaderStrategy

FormulationStrategy

Implementation

Performance

ModeratingFactors


Moderators of Executive Discretion

External Factors

Uncertainty

Type of industry

Market growth

Legal constraints

Internal Factors

Stability

Size and structure

Culture

Stage of organizational development

TMT


Characteristics of Upper Echelon Leaders: Themes

Challenge Seeking

Risk taking

Openness to change

Willingness to innovate

Future orientation

Need for Control

Delegation

Centralization

Uniformity of practices

Focus on process


Four Strategic Leadership Types

Desire for ControlHigh Control Low Control

ChallengeSeeking

High Challenge Seeking

LowChallenge Seeking

High-Control Innovator (HCI)

Challenge-seeking leader who maintains

tight control of the organization

Participative Innovator (PI)

Challenge-seeking leader who delegates

control of the organization

Status Quo Guardian (SQG)

Challenge-averse leader who maintains tight

control of the organizations

Process Manager (PM)Challenge-averse leader who delegates control of

the organization


Culture and Gender

Culture Different countries have different implicit

leadership theories

Gender Little research on role of gender in

upper echelon Fewer women in executive leadership

positions


How Executives Affect their Organization

Leadership

• Direct decisions• Allocation of

resources• Reward systems• Selection of other

leaders• Promotions• Role modeling

Environment

Strategy

Structure

Technology

Culture


Direct Decisions

Vision

Mission

Strategy

Structure

Organizational culture

Selection of other leaders


Allocation of Resources and Reward System

Decisions regarding funding and budgets

Allocation of resources to support goals

Formal rewards such as salary and bonuses

Informal rewards such as recognition

Promotion of other leaders and managers


Setting the Norm and Role Modeling

Setting decision criteria and rules by which others make decisions

Active or subtle role modeling of wanted behaviors and style


Responsibilities of Strategic Leaders

Organizational performance

Internal health – organizational culture

Accountability to internal and external constituents

Ethical behavior and role modeling


Factors that Affect Executives’ Salaries

Size of organization

Industry competition

CEO power and discretion

Internationalization

High stress and instability


Characteristics of Nonprofits

Operate without profit

Funds reinvested inside the organization

Public service mission

Voluntary board of directors

Funded through various private and public contributions


Role of Leaders in Nonprofit Organizations

Donors

Individual donorsMembers

FoundationsGovernment

grantsOther contributors

Recipients

IndividualsMembers

CommunitiesOther

organizations

LEADER


Leadership Challenges in Nonprofits

Leaders must rely on participatory leadership to build consensus

Strong ethical requirements

Motivating and retaining employees

Finding and training future leaders


Leadership Challenge

CEO involvement in nomination of board members helps assure that members with the right skills and expertise are selected

Those nominated by CEO may have a conflict of interest and a positive bias towards the CEO

Creation of a balance of members nominated by different stakeholders is essential


Leading Change: Ramdas

CEO of the Global Fund for Women

Strong social mission to help women become independent

Tireless and passionate advocate

Strong presence and persuasive skills

Organization is tied to her own identity


Leadership in Action: Leadership at P&G

P&G is well established in a highly competitive global market

Lafley and McDonald are both insider

Both focused on leadership development

McDonald is heavily invested in value-based leadership with emphasis on positive leadership and integrity

List of 10 leadership lessons

Focus on “changing people’s lives”


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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1 Chapter 7 Other Leadership...

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