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    Chapter

    12 Leadership

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    Learning ObjectivesLearning Objectives

    Af ter studying Chapter 12, you will know:what it means to be a leader how a good vision helps you be a better leader how to understand and use power the personal traits and skills o f eff ective leadersthe behaviors that will make you a better leader

    what it means to be a charismatic and transf ormational leader

    how to f urther your own leadership development

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    VisionVision

    Visiona mental image o f a possible and desirable f uture state o f theorganization

    having a vision and communicating it to others are essentialcomponents o f great leadershipthe best visions are both:

    ideal - communicates a standard o f excellence and clear choice

    of

    positive valuesun iqu e - communicates and inspires pride in being di ff erentf rom other organizations

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    Vision (cont.)Vision (cont.)

    I mportant points about visionsa vision is necessary f or e ff ective leadershipa person or team can develop a vision f or any job

    many people, including managers who do not develop intostrong leaders, do not develop a clear vision

    Visions can be inappropriatemay re f lect merely the leaders personal needsmay ignore stakeholders needsthe vision must change when circumstances change

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    Leading A nd ManagingLeading A nd Managing

    A bility to lead e ff ectively sets excellent managers apartf rom average ones

    managers deal with ongoing organizational activities

    planning and budgeting routines, structuring the organizationleadership includes orchestrating organizational change

    creating a vision f or the f irm and inspiring people to attain it

    management and leadership are both vitally important

    s up ervi so ry leader sh i p - provides guidance, support, andcorrective f eedback f or day-to-day activities o f work unitmembersst ra t egic leader sh i p - gives purpose and meaning to

    organizations

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    Leading A nd FollowingLeading A nd Following

    Organizations succeed or f ail because o f how well f ollowersf ollow

    eff ective f ollowers:are capable o f independent thinkingare actively committed to organizational goalsare enthusiastic about ideas and purposes beyond their own sel f interest

    master skills that are use f ul to the organizationhold per f ormance standards that are higher than required

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    Power A nd LeadershipPower A nd Leadership

    Power ability to in f luence other people

    Sources o f power legi t ima t e p ow er - leader has organizational authority

    employees are obligated to comply with legitimate orders

    re w ard p ow er - leader has control over valued rewardsco ercive p ow er - leader has control over punishmentsrefere n t p ow er - leader has personal characteristics that appealto others and make them desirous o f the leaders approvalex p er t p ow er - leader has knowledge that others f eel will be o f

    bene f it to them

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    Sources O f Power Sources O f Power

    Control over punishments

    A ppealing personal

    characteristics

    A uthority

    Power

    Control over rewards

    Expertise

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    12 - 10Traditional A pproaches ToTraditional A pproaches ToUnderstanding LeadershipUnderstanding Leadership

    Leader traitst rai t a pp r o ac h - f ocussed on individual leaders to determinethe personal characteristics that great leaders share

    characteristics that distinguish e ff ective leadersdrive - characteristics that re f lect a high level o f eff ortleader sh i p m ot iva t i o n - they w a n t to lead i n t egri t y - actions correspond to words

    s elf-c o n fide n ce - expectation that one is able to overcomeobstacles and make good decisions in the f ace o f uncertaintyk n ow ledge o f th e b u s i n ess - ability to interpret in f ormationabili t y to p erceive th e n eed s o f oth er s a n d to adj u st o n e s beh avi o r acc o rdi n gly

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    12 - 11Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Leader behaviorsbe h avi o ral a pp r o ac h - sought to identi f y what behaviors goodleaders exhibit

    t a s k p erf o rma n ce - leaders e ff orts to ensure that the work unit reaches its goals

    f ocus on work speed, quality and quantity o f output, and rules

    gr o up mai n t en a n ce - actions taken to ensure satis f action

    develop and maintain harmonious work relationshipsleader-member exc h a n ge th eo ry - f ocuses on the leaders

    behavior toward individualsf ocus is primarily on group maintenance behaviors

    potential f or cross-cultural di ff erences

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    12 - 12Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Leader behaviors (cont.)p ar t ici p a t i o n i n deci s i o n ma k i n g - leader behaviors thatmanagers per f orm in involving their employees in making

    decisionsa u to cra t ic leader sh i p - makes decisions and then announcesthem to the groupdem o cra t ic leader sh i p - solicits input f rom others

    uses consensus or majority vote to make thef inal choice

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    12 - 13Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Leader behaviors (cont.)effec ts o f leader be h avi o r

    deci s i o n st yle s

    democratic approach resulted in the most positive attitudesautocratic approach resulted in somewhat higher per f ormancelai ss ez-faire - leadership philosophy characterized by an absence o f managerial decision makingcharacteristics o f the situation, leader, and the f ollower determine theappropriate decision-making style

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    12 - 15Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Leader behaviors (cont.)effec ts o f leader be h avi o r (cont.)

    p erf o rma n ce a n d mai n t en a n ce be h avi o r (cont.)

    Michigan studies - most e ff ective managers were task orientedeff ective managers also were relationship oriented

    taken together, Ohio State and Michigan research suggested that theideal leader is always both per f ormance and maintenance orientedB la k e a n d M o u to n s Leader sh i p Grid

    described a wide range o f leadership stylesrecommended a 9,9 style that is high on concern f or people andhigh on concern f or productionignores the e ff ect o f the situation

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    1 2 3 4 5 6 7 8 9

    C o n cer n f o r Pr o d u ct i o nHighLow

    High

    Low

    The Leadership GridThe Leadership Grid

    TeamMana gement

    (9,9)

    M iddl e of the Ro adMana gement

    (5,5)

    Imp over ish edMana gement

    (1,1)

    Cou ntry ClubMana gement

    (1,9)

    Au tho r ity-Co mp liance

    (9,1)

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    12 - 17Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Situational approaches to leadershipleadership perspectives proposing that universally importanttraits and behaviors do not exist, and that e ff ective leadership

    behavior varies f rom situation to situationreq u ire s th e leader to fir st a n alyze th e s i t u a t i o n a n d th en decidewh a t to d o

    Tannenbaum and Schmidt - three f actors must be considered be f ore deciding how to lead

    f orces in the manager f orces in the subordinatef orces in the situation

    arguments remain valid today

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    12 - 18Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Situational approaches to leadership (cont.)Vroom model - f ocuses on how leaders go about makingdecisions

    seven situational f actors used to analyze problemseach based on a problem attributescored as either high or low

    answering a series o f questions about the problem attributesleads one to 14 possible endpoints o f the analysis

    each endpoint recommends one o f f ive decision stylesdecision styles indicate that there are several shades o f

    participation

    use o f the model ensures that important situational f actors are

    considered

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    12 - 19Vrooms Situational Factors For Vrooms Situational Factors For Problem A nalysisProblem A nalysis

    DE CISION SIGNIFICANC E

    IMP OR TANC E OFCO MM ITM E NT

    L E ADE RS EX P E R T IS E

    LIK E LIHOO D OFCO MM ITM E NT

    GROUP

    SUPP

    OR T

    FOR OBJ E C T IV E S

    GROU P EX P E R T IS E

    T E AM CO MP E T E NC E

    The sign ificance of the dec isio n to the su cce ssof the pr oj ect or or gan izat ion

    The imp ortance of team mem ber s comm itmentto the dec isio n

    You r k n owl edg e or expert ise in re lat ion to thispr obl em

    The lik elihood that the team would comm it itself to a dec isio n that you m igh t ma k e on you r ow n

    The degree to whi ch the team su pp ort s theor gan izat ion s obj ect ives at sta k e in this pr obl em

    Team mem ber s k n owl edg e or expert ise inre lat ion to this pr obl em

    The abili ty of team mem ber s to wo r k toget herin solvi n g pr obl em s

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    Vrooms Model O f Leadership StyleVrooms Model O f Leadership Style

    TeamCompetence

    Group Expertise

    Group Support

    Likelihood o f CommitmentLeader Expertise

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    Use o f authority by manager

    A rea o f f reedomf or subordinates

    DecideConsult

    Individually Consult Group Facilitate Delegate

    50 103 7

    Vrooms Leader Decision StylesVrooms Leader Decision Styles

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    12 - 23Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Situational approaches to leadership (cont.)p a th -g o al th eo ry - concerns how leaders in f luencesubordinates perceptions o f their work goals and the paths

    they f ollow toward attainment o f those goalsf our pertinent leadership behaviors

    direc t ive leader sh i p - task per f ormance-oriented behavior s upp o r t ive leader sh i p - group maintenance-oriented behavior p ar t ici p a t ive leader sh i p - decision styleac h ieveme n t -o rie n t ed leader sh i p - behavior geared towardmotivating people

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    12 - 24Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Situational approaches to leadership (cont.)p a th -g o al th eo ry (cont.)

    f actors that determine appropriate leader behavior include:

    personal characteristics of

    thef ollowers

    a u tho ri t aria n i s m - degree to which individuals see theenvironment as responsive to their own behavior l o cu s o f c o n t r o l - extent to which individuals see the environmentas responsive to their own behavior

    - i n t er n al - believe that what happens to them is their owndoing- ex t er n al - believe that luck or f ate controls their lives

    abili t y - belie f s about their own abilities to do their assigned jobs

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    A ppropriateness o f 1. Directive,2. Supportive,3. Participative, or 4. A chievement

    leader behaviors

    Characteristicsof f ollowers

    Environmentalf actors

    determine Followersgoals and

    per f ormance

    leading to

    The PathThe Path--Goal Framework Goal Framework

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    12 - 27Traditional A pproaches ToTraditional A pproaches ToUnderstanding Leadership (cont.)Understanding Leadership (cont.)

    Situational approaches to leadership (cont.)s u bst i t u t es f o r leader sh i p - f actors in the workplace that canexert the same in f luence on employees that leaders would

    providecertain f ollower, task, and organizational f actors are substitutesf or task per f ormance-oriented and group maintenance-orientedleader behaviors

    practical implication o f this ideacreate situations in which substitutes f or leadership operateleader will require less time in attempts to in f luence people

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    12 - 28Contemporary Perspectives OnContemporary Perspectives OnLeadershipLeadership

    Charismatic leadershipdominant and exceptionally sel f -con f ident, with a strongconviction in the moral righteousness o f their belie f s

    communicate high expectations f or and con f idence inf ollowersarticulates ideological goalsinspire their f ollowers trust, con f idence, acceptance,

    obedience, emotional involvement, a ff ection, admiration, andhigher per f ormance

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    12 - 29Contemporary Perspectives OnContemporary Perspectives OnLeadership (cont.)Leadership (cont.)

    Transactional leadershiptraditional management through business transactionsleaders who manage through using their legitimate, reward,

    and coercive powers to give commands and exchange rewardsf or services rendereddispassionate leadership that does not inspire people to f ocuson the interests o f the organization

    Trans f ormational leadershipmoves beyond transactional leadershiptrans f orms a vision into reality and motivates people totranscend their personal interests f or the good o f the group

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    12 - 30Contemporary Perspectives OnContemporary Perspectives OnLeadership (cont.)Leadership (cont.)

    Trans f ormational leadership (cont.) ge n era t i n g exci t eme n t - three ways

    they are ch ari s ma t ic

    provide i n divid u alized a tt en t i o n - do not treat everyone alikeassign challenging work to deserving people

    provide one-on-one mentoring to develop their people

    they are i n t ellec t u ally st im u la t i n g - arouse an awareness o f problems and potential solutions

    articulate the organizations opportunities, threats, strengths, andweaknessesstir the imagination and generate insights

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    Trans f ormational leadership (cont.)s k ill s a n d st ra t egie s - rely on f our

    h ave a vi s i o n

    co mm un ica t e th eir vi s i o nbu ild t r u st h ave a p os i t ive s elf-regard

    recognize their personal strengths and compensate f or weaknessesknow how to learn f rom f ailure

    t ra n s f o rmi n g leader s - training available to stimulatetrans f ormational leadership

    research indicates that about hal f of trainees becometrans f ormational

    Contemporary Perspectives OnContemporary Perspectives OnLeadership (cont.)Leadership (cont.)

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    12 - 32Contemporary Perspectives OnContemporary Perspectives OnLeadership (cont.)Leadership (cont.)

    Post-heroic leadershipeven great top executives cant solve all problems on their own

    eff ective leadership must permeate the organizationleader must spread leadership abilities throughout the f irmmake heroes out o f those who f igure out what needs to be doneand then do it

    Anote on courageneed courage to:

    create and execute a vision o f greatness f or your unittake reasonable risks

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    12 - 34Classic Contingency Models O f Classic Contingency Models O f LeadershipLeadership

    Fiedlers contingency modelleader e ff ectiveness depends on two f actors

    the personal style o f the leader

    t a s k -m ot iva t ed - primary emphasis on completing the task low lea st p referred c owo r k er (LPC)

    rela t i o n sh i p -m ot iva t ed - emphasizes maintaining good interpersonalrelationships

    high LPC

    degree to which the situation gives the leader power, control, andin f luence over the situation

    diff erent situations dictate di ff erent leadership styles

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    Fiedlers A nalysis O f SituationsFiedlers A nalysis O f Situations

    Poor GoodLeader-member relations

    Structured Unstructured Structured UnstructuredTask

    structure

    High Low High Low High Low High LowLeader

    position power

    Ta sk -m otivate d

    Ta sk -m otivate d

    Ta sk -m otivate d

    R elat ion-shi p-

    m otivate d

    R elat ion-shi p-

    m otivate d

    R elat ion-shi p-

    m otivate d

    R elat ion-shi p-

    m otivate d

    Ta sk -m otivate d

    Mosteff ective

    leader in the

    situation

    Favorablef or leader

    Un f avorablef or leader

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    12 - 36Classic Contingency Models O f Classic Contingency Models O f Leadership (cont.)Leadership (cont.)

    Hersey and Blanchards situational theorymanager should consider an employees psychological and jobmaturity

    j o b ma t u ri t y - level of

    thef ollowers skills and technicalknowledge relative to the task per f ormed

    p s ycho l o gical ma t u ri t y - f ollowers sel f -con f idence and sel f -respect

    determines the degree to which task per f ormance or maintenance behaviors are important

    maintenance behaviors are not important with f ollowers o f low or high levels o f maturity

    per f ormance behaviors important f or f ollowers with low maturity