Management and Behavioural Processes

Management and Behavioural Processes

Course 08MBA11December 16, 2008

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Reflections

– Are leaders always needed? Only when there is competition and conflict?

– Find people and assign work OR find work and assign people?

– Are dictators leaders?

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Chapter 13Leading

– What is the nature of leadership?– What are the important leadership traits and

behaviors?– What are current issues in leadership

development?– What are the contingency theories of leadership?

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FIGURE 13-1 Leading viewed in relationship the other management functions.

Schermerhorn/Management, 7eChapter 13, Figure 13-01

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vs.

• Complexity• Planning & Budgeting

Targets/Goals• Organizing & Staffing• Controlling & Problem

Solving

• Change• Setting Direction -- Visions• Aligning People• Motivating

“Inspiring/Moving”

Rational Intuitive

Kotter

Managers Leaders

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What is the nature of leadership?

Leadership, vision, and visionary leadership– Leadership

• The process of inspiring others to work hard to accomplish important tasks.

– Vision• A future that one hopes to create or achieve in order to improve

upon the present state of affairs.

– Visionary leadership• A leader who brings to the situation a clear and compelling sense

of the future as well as an understanding of the actions needed to get there successfully.

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Meeting the challenges of visionary leadership:– Challenge the process– Show enthusiasm– Help others to act– Set the example– Celebrate achievements

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Managerial Power Equation

ManagerialPower = Position

PowerPersonal

Power+• Rewards• Punishments• Legitimacy

• Expertise• Reference

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Power– Ability to get someone else to do something you want or

make things happen the way you want. Sources of position power {tends to be formal}– Reward power (positive reinforcement)– Coercive power (negative reinforcement)– Legitimate power (“is what it is”)

Sources of personal power {tends to be informal}– Expert power (knowledge – human capital)– Referent power (networks – social capital)

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FIGURE 13-2 Sources of position power and personal power used by managers.


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Turning power into influence …– Successful leadership relies on acquiring and using all sources of

power.– Use of reward power or legitimate power produces temporary

compliance.– Use of coercive power produces, at best, temporary compliance

accompanied by resistance.– Use of expert power or referent power generates commitment.– NOTE: enduring may not always be good ….

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Turning power into influence, through integrity

– Keys to developing personal power:

• There is no substitute for expertise (respect)

• Likable personal qualities are very important (trust)

• Effort and hard work breed respect (respect)

• Personal behavior must support expressed values

(trust)

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Turning power into influence– Keys to developing position power:

• Centrality—establishing a broad network of contacts and

getting involved in important information flows

– Can influence ever be exerted from outside without force or

violence?

• Criticality—taking good care of dependencies by/on others

• Visibility—becoming known as an influential person

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Acceptance theory of authority– For a leader to achieve influence, the other

person must:• Truly understand the directive.• Feel capable of carrying out the directive.• Believe the directive is in the organization’s best

interests.• Believe the directive is consistent with personal values.

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Leadership and empowerment– Empowerment

• The process through which managers enable and help others to gain power and achieve influence.

– Effective leaders empower others by providing them with:• Information• Responsibility• Authority• Trust

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How leaders can empower others …– Involve others is selecting their work assignments and task methods.– Create an environment of cooperation, information sharing,

discussion, and shared ownership of goals.– Encourage others to take initiative, make decisions, and use their

knowledge.– Find out what others think and let them help design solutions.– Give others the freedom to put their ideas and solutions into practice.– Recognize successes and encourage high performance.

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What are the important leadership traits and behaviors?

Traits that are important for leadership success:– Drive– Self-confidence– Creativity– Cognitive ability– Business knowledge– Motivation– Flexibility– Honesty and integrity

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Task concerns– Plans and defines work to be

done– Assigns task responsibilities– Sets clear work standards– Urges task completion– Monitors performance results

People concerns– Acts warm and supportive

toward followers– Develops social rapport with

followers– Respects the feelings of

followers– Is sensitive to followers’

needs– Shows trust in followers

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Blake and Mouton Leadership Grid– Team management

• High task concern; high people concern– Authority-obedience management

• High task concern; low people concern– Country club management

• High people concern; low task concern– Impoverished management

• Low task concern; low people concern.– Middle of the road management

• Non-committal for both task concern and people concern

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Blake & Mouton’s Leadership Grid

Autocraticleader

“High-High” Democratic

leader

Laissez-faireleader

Human relationsleader

ConcernforTask

High

LowLow HighConcern for People

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FIGURE 13-3 Managerial styles in Blake & Mouton’sLeadership Grid.


Four systems of management

Rensis Likert

• System 1 – Exploitive-authoritive

• System 2 – Benevolent-authoritive

• System 3 – Consultative

• System 4 - Participative


System 1 – Exploitive-authoritive

– Manager makes all work-related decisions and orders the subordinates to carry out the orders

– Managers have little trust of employees and set rigid standards – failure means punishment

– Subordinates fear management – Generally productivity is poor


System 2 – Benevolent-authoritive

– Manager will still make all work-related decisions, however subordinates can comment and have flexibility to carry out the orders

– Managers and subordinates are cautious of each other

– Rewards are available for the subordinates – Production is satisfactory


System 3 – Consultative

– Goals are set and orders are passed down to subordinates after there has been a discussion

– Teamwork is encouraged– Management generally trusts their

subordinates– Rewards and not threats are used as

motivation tools


System 4 – Participative

– Goals and work related decisions are made by a group– Full participation and commitment to the organization’s

goals– Managers motivate by economic rewards, and also

make subordinates feel important and needed– Good communications– Excellent productivity, very low absenteeism and labor

turnover

– This is the most favored style of management

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What are current issues in leadership development?

Charismatic leaders– Develop special leader-follower relationships and

inspire others in extraordinary ways. Transformational leadership– Someone who is truly inspirational as a leader and

who arouses others to seek extraordinary performance accomplishments.

Transactional leadership– Someone who is methodical as a leader and keeps

others focused on progressing toward goal accomplishment.

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Characteristics of transformational leaders– Vision– Charisma– Symbolism– Empowerment– Intellectual stimulation– Integrity

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Emotional intelligence– The ability of people to manage themselves

and their relationships effectively.– Components of emotional intelligence:

• Self-awareness• Self-regulation• Motivation• Empathy• Social skill

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Gender and leadership– Women tend to use interactive leadership.

• A style that shares qualities with transformational leadership. Behaviors.

– Men tend to use transactional leadership.– Interactive leadership provides a good fit with the

demands of a diverse workforce and the new workplace.

– Future leadership success will depend on a person’s capacity to lead through positive relationships and empowerment.

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Drucker’s “old-fashioned” leadership– Leadership is more than charisma; it is “good old-

fashioned” hard work.– Essentials of “old-fashioned” leadership:• Defining and establishing a sense of mission.• Accepting leadership as responsibility rather than rank.• Earning and keeping the trust of others.

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Ethical aspects of leadership– Integrity …• The leader’s honesty, credibility, and consistency in

putting values into action.• Crucial for transformational leadership and good old-

fashioned leadership.– Moral obligation to awaken people’s potential.– Moral leaders instill high expectations and let

others do their best.

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WHAT LEADERS DO...• Recruits, doesn’t just hire• Breathes vision into people• Models positive behavior• Challenges, provokes • Is intellectually stimulating• Doesn’t interfere, has courage to let it happen• Discovers talents• Builds the habitat for creativity• Instills ownership

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What are the contingency theories of leadership?

Fiedler’s contingency model– Good leadership depends on a match between

leadership and situational demands.– Determining leadership style:

• Task-motivated leaders• Relationship-motivated leaders

– Diagnosing situational control:• Quality of leader-member relations (good or poor)• Degree of task structure (high or low)• Amount of position power (strong or weak)

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Fiedler’s contingency model– Matching leadership style and situational

control:• Task-oriented leaders are most successful in

– Very favorable (high control) situations.

– Very unfavorable (low control) situation.

• Relationship-oriented leaders are most successful in – Situations of moderate control.

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FIGURE 13-4 Matching leadership style and situation: summary predictions from Fiedler’s contingency theory.


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Hersey-Blanchard situational leadership model– Leaders adjust their styles depending on the

readiness of their followers to perform in a given situation.• Readiness—how able, willing and confident followers

are in performing tasks.

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Hersey-Blanchard leadership styles– Delegating• Low-task, low-relationship style

• Works best in high readiness-situations

– Participating• Low-task, high-relationship style

• Works best in low- to moderate-readiness situations

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Hersey-Blanchard leadership styles– Selling

• High-task, high-relationship style

• Work best in moderate- to high-readiness situations

– Telling• High-task, low-relationship style

• Work best in low-readiness situations

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FIGURE 13-5 Leadership implications of the Hersey-Blanchard situational leadership model.


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House’s path-goal leadership theory– Effective leadership deals with the paths through

which followers can achieve goals.– Leadership styles for dealing with path-goal

relationships:• Directive leadership• Supportive leadership• Achievement-oriented leadership• Participative leadership

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House’s path-goal leadership theory– Use directive leadership when job assignments

are ambiguous.– Use supportive leadership when worker self-

confidence is low.– Use participative leadership when performance

incentives are poor.– Use achievement-oriented leadership when task

challenge is insufficient.

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FIGURE 13-6 Contingency relationships in the path-goal leadership theory.


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Substitutes for leadership– Aspects of the work setting and the people

involved that can reduce the need for a leader’s personal involvement.

– Possible leadership substitutes:• Subordinate characteristics• Task characteristics• Organizational characteristics

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Vroom-Jago leader-participation theory– Helps leaders choose the method of decision

making that best fits the nature of the problem situation.

– Alternative decision-making methods• Authority decision• Consultative decision• Group decision

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Vroom-Jago leader-participation theory– Use group-oriented and participative decision-

making methods when …• The leader lacks sufficient information to solve a

problem by himself/herself.• The problem is unclear and help is needed to clarify the

situation.• Acceptance of the decision by others is important.• Adequate time is available for true participation.

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Vroom-Jago leader-participation theory

– Use authority-oriented decision-making methods

when …

• The leader has greater expertise to solve a problem.

• The leader is confident and capable of acting alone.

• Others are likely to accept the decision.

• Little or no time is available for discussion.

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FIGURE 13-7 Leadership implications of Vroom-Jagoleader-participation model.


Management and Behavioural Processes

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