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Leadership
Introduction
What is leadership?the process of exerting influence over others
Leadership = management?managers care about processleaders care about outcomes
Leader identificationHow do we find them?
Power & Leadership
Formal Vs. Informal LeadersLeaders must possess and be willing to use
powerfollowers are those with power who refuse to
use itupward acceptance
Evolution of Leadership
The Strong ManThe TransactorThe Visionary HeroThe SuperLeader
emphasis on partnershipemphasis on follower development
Trait Theory of Leadership
Emergence Vs. effectivenessEmergent traits
intellegience height attractiveness self-confidence
Effectiveness traits charisma
Contingency Theories
FiedlerPath-Goal TheoryVroom-Yetten
Fiedler's Contingency Theory
Leaders are oriented to a particular stylestyle is stable & not easy to changeeither task or relationship orientedmeasured by Least Preferred Coworker (LPC)
scale High LPC leaders were people oriented Low LPC leaders were task oriented
Leader-member relationshow well do followers and leader get along
Task structurehow clearly are jobs specified
Position powerthe amount of legitimate, reward, & coercive
power
Situational Factors
Low LPC leaders do best in the most and least favorable of situations
High LPC leaders do best in situations of moderate favorableness
Change situations to match leader style
Leader Effectiveness
Path-goal Theory
Based on expectancy theoryprovide desired rewardsclarify the path needed to attain rewards
Leader behaviors and situational factors
Four leader behaviors
Directiveclarify goals and expectationsexplain job and procedures
Supportiveconcern and supportlisten and advise
Participativeseek ideas and inputhelp make decisions
Achievementsetting high goalsgetting goal commitment
leader must be able to do each of these behaviors
Four leader behaviors (cont’d)
Situational Factors
Subordinate characteristicsability, authoritarianism, & locus of control
(LOC)
Environmental factorstask, formal authority structure, organizational
and group norms
Must analyze the situational factors and apply the proper behavior
high ability achievement
external LOC directive
lots of rules supportive
clear task participative
Proper matching leads to:employee satisfactiongreater quality
Path Goal (cont’d)
Vroom-Jago Model
Helps determine appropriate level of employee participation
Very practical means of assessing the situation
Five styles
Leader Styles
AI - AutocraticSolve the problem yourselfusing the information you have.
AII - Lessautocratic
Obtain the needed informationfrom workers; then solve theproblem yourself. Workersprovide information but notalternatives.
C1- Consultative
Share the problem with workersindividually (but not as a group),seeking suggestions & possiblealternatives. Solve the problemyourself.
Styles (cont’d)
CCIIII -- MMoorreeccoonnssuullttaattiivvee
SShhaarree tthhee pprroobblleemm wwiitthh wwoorrkkeerrssaass aa ggrroouupp,, sseeeekkiinngg ssuuggggeessttiioonnss&& ppoossssiibbllee aalltteerrnnaattiivveess.. SSoollvveeyyoouurrsseellff..
GGIIII -- GGrroouuppddeecciissiioonn
SShhaarree tthhee pprroobblleemm wwiitthh wwoorrkkeerrssaass aa ggrroouupp,, sseeeekkiinngg ssuuggggeessttiioonnss&& ppoossssiibbllee aalltteerrnnaattiivveess.. AAtttteemmppttttoo rreeaacchh aa ccoonnsseennssuuss && bbeewwiilllliinngg ttoo aacccceepptt && iimmpplleemmeenntttthhee wwoorrkkeerrss’’ ssoolluuttiioonn..
Seven analysis questions
A -Is there a quality standard that makes one alternative superior to another
B -Do I have enough information to make a good decisionC -Is the problem structured?D - Must workers accept my decision if they are to
implement it effectively?E - If I make the decision alone, are workers likely to accept
my decision?F - Do workers share the firm’s goals?
G - Is conflict among workers likely among preferred solutions?
A B C D E F G
N
N
NN
N
N N
NN
NN
N
N
N
Y YYYY
YY
YY
Y
Y
Y
YY
AIAI
AIAI
GII
GII
GII
AII
CII
CII
CIICII
CI
AII
Transformational Leadership
Transactional leadershipthe leadership style of managersrelies on extrinsic rewards for controlconcentrate on processcreates bureaucratic behavior
Elements of Transformational Leadership
The leader transforms and motivates followers by:making them more aware of the importance of
task outcomesinducing them to transcend their own self-
interest for the sake of the organization or teamactivating their higher-order needs
Attributes of Effective Transformational Leaders
See themselves as change agentsBelieve in people and are sensitive to their
needsAble to articulate a set of core values which
guide their behaviorAre flexible and open to learning from
experienceAre visionaries who trust their intuition
Transformational Leadership Skills
These skills can be learnedDevelop a Clear VisionDevelop Commitment & TrustUtilize Symbolic Action
Develop a Clear Vision
Recognize the need for change and help others understand this need
Vision must be attractive & inspirationalListen to followers, incorporate their
dreams and valuesGuides behaviors
Develop Commitment and Trust
No trust, no commitmentdon’t play gamesbe honest and open
Express confidence in employeesidentify strengthsdeal with weaknesses
Communication skills are very important
Utilize Symbolic Action
Use stories, colorful and emotional language, metaphors, symbols, and slogans
Lead by exampleyour actions and words are symbolicact in accordance with the vision
Use rites and ceremonies
Empower Employees
Move away from authoritarianism and paternalismcurtail hierarchical myopiacommand and controlentitlements
Create “fully participating partners”Vision guides behavior
Empowerment Principles
Creation and use of knowledgeClarification of decision rightsInvest in employee developmentReward and reinforce appropriate actions
Creation and Use of Knowledge“Knowledge Factors”
Dispersed knowledgemuch knowledge is localdifficult to collect
Tacit knowledgedifficult to articulate and communicate
Knowledge is often untestedhow to deal with new ideasinnovations often discouraged
Implications
Management information systemsManagers do not have complete informationEmployees are an important source of
informationCommand and control structure stifles
creativity and innovation
Clarification of Decision Rights“The Tragedy of the Commons”
Public or common property is that which is owned by a collective
No ownership--no accountability--no incentive to conserve and protect it
It is neglected and/or abusedOften there are too many common goods in
organizations
Clarify Roles and Responsibilities
Create ownershipfor every action, activity, and resultnot just objective
Different than job descriptionConsistent with vision/missionFluid and responsive to changesProcess for resolving disputes
Allocation of Decision Rights
Based on tacit knowledgego with those who know
Decentralize based on knowledgemanagers don’t always know best
Ownership ensures accountabilityCorporate entrepreneursExpand based on demonstrated judgment
Invest in Employee Development
Human resources not labor coststraining and education are investments
Performance =f (Ability x Motivation x Opportunity)
Builds self-efficacy and self-confidenceexpress their tacit knowledgeadd value to companyalert to opportunity and threats
Employee Development (cont’d)
Purpose of knowledge is to ask better questionsMust be allowed to practice and use knowledgeLeaders as mentors and coachesChanging vision may require “remedial”
trainingto over-come old methodsunlearn bad habits
Reward & Reinforce Appropriate Actions
“Rules of Just Conduct”
Clearly expressed values and expectationsPermeate every facet of organizational lifeIntegrate with visionLinked to net present value
ethics and long-term successover-come short-term mind set
Incentive Principles
You get what you pay forconcentrate on objectivesubjective often ignored
Rewards are symbolic“tell” employees what is really importantconsistent with vision & rules of conduct?
Includes both intrinsic and extrinsic
Effective Incentives
Ensure alignment with vision and rules what are you really rewarding
Don’t punish failurelearning experiencesthis kills innovation and creativity
Be creativeRestore vigor and “fun”