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LeadershipLeadership

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LeadershipLeadership Leadership is the process where a person

exerts influence over others and inspires, motivates and directs their activities to achieve goals.

Effective leadership increases the firm’s ability to meet new challenges.

Leader: The person exerting the influence. Personal Leadership Style: the ways leaders choose to

influence others. Some leaders delegate and support subordinates, others

are very authoritarian. Managers at all levels have their own leadership style.

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Leadership Across CulturesLeadership Across Cultures

Leadership styles may vary over different cultures. European managers tend to be more people-oriented than

American or Japanese managers. Japanese culture is very collective oriented, while

American focuses more on profitability. Time horizons also are affected by cultures.

U.S. firms often focus on short-run efforts. Japanese firms take a longer-term outlook.

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Sources of PowerSources of Power

RewardPower

RewardPower

LegitimatePower

LegitimatePower

CoercivePower

CoercivePower

ExpertPower

ExpertPower Referent

Power

ReferentPower

Enable managers to beleaders & influence

subordinates to achieve goals

Enable managers to beleaders & influence

subordinates to achieve goals

Figure 13.1

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Sources of PowerSources of Power

Used to affect other’s behavior and get them to act in given ways. Legitimate Power: manager’s authority resulting by their

management position in the firm. Can be power to hire/fire workers, assign work.

Reward Power: based on the manager’s ability to give or withhold rewards. Pay raises, bonuses, verbal praise. Effective managers use reward power to signal

employees they are doing a good job.

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Sources of PowerSources of Power Coercive Power: based in ability to punish others.

Ranges from verbal reprimand to pay cuts to firing. Can have serious negative side effects.

Expert Power: based on special skills of leader. First & middle managers have most expert power. Often found in technical ability.

Referent Power: results from personal characteristics of the leader which earn worker’s respect, loyalty and admiration. Usually held by likable managers who are concerned

about their workers.

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EmpowermentEmpowermentProcess of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers:

Get workers involved in the decisions. Increase worker commitment and motivation. To focus on other issues.

Effective managers usually empower substantial authority to workers.

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Leadership ModelsLeadership Models– Trait Model: sought to identify personal characteristics

responsible for effective leadership. Research shows that traits do appear to be connected to

effective leadership.– Many “traits” are the result of skills and knowledge.– Not all effective leaders possess all these traits.

– Behavioral Model: Identifies types of behavior. Consideration: leaders show care toward workers.

– Employee-centered. Initiating Structure: managers take steps to make sure

work is done. – Done by assigning work, setting goals, etc.– Job-oriented.

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ConsiderationConsideration Initiating StructureInitiating Structure

Consideration & Initiating StructureConsideration & Initiating Structure

Is friendly, approachable

Do little things to make it funto be a member of group

Give advance notice of changes

Willing to make changes

Treats group members as equals

Is friendly, approachable

Do little things to make it funto be a member of group

Give advance notice of changes

Willing to make changes

Treats group members as equals

Tries out ideas in the group

Lets group members know what is expected

Assigns workers to tasks

Schedules work to be done

Maintains standardsof performance

Tries out ideas in the group

Lets group members know what is expected

Assigns workers to tasks

Schedules work to be done

Maintains standardsof performance

Rate manager from 1 (never does) to 5 (always does)NOTE: for full survey, see Figure 13.2 in text

Figure 13.2

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Theories of Leadership

Trait theories:Is there a set of characteristics

that determine a good leader? Personality? Dominance and personal presence? Charisma? Self confidence? Achievement? Ability to formulate a clear vision?

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Theories of Leadership

Trait theories: Are such characteristics

inherently gender biased? Do such characteristics

produce good leaders? Is leadership more than

just bringing about change? Does this imply that leaders are born not bred?

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Theories of Leadership

Behavioural:Imply that leaders can be trained – focus on the way

of doing things Structure based behavioural theories – focus on the leader

instituting structures – task orientated Relationship based behavioural theories – focus on the

development and maintenance of relationships – process orientated

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Contingency Models Contingency Models

Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. Leader style: the enduring, characteristic approach to

leadership a manager uses. Relationship-oriented: concerned with developing good

relations with workers. Task-oriented: concerned that workers perform so the

job gets done.

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Fiedler’s Model Fiedler’s Model Situation characteristic: how favorable a given situation

is for leading to occur. Leader-member relations: determines how much

workers like and trust their leader. Task structure: extent to which workers tasks are clear-

cut. Clear issues make a situation favorable for leadership.

Position Power: amount of legitimate, reward, & coercive power a leader has due to their position. When positional power is strong, leadership opportunity

becomes more favorable.

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Fiedler’s Contingency ModelFiedler’s Contingency Model

GOOD POOR

HIGH LO W HIGH LOW

S W S W S W S W

Leader-MemberRelations

TaskStructure

PositionPower

Kinds ofLeadershipSituations

VeryFavorable

VeryUnfavorable

I II III IV V VI VII VIII1

Relationship-oriented managers most effective in IV, V, VI, VII.Task-oriented managers most effective in I, II, III or VIII.

Figure 13.3

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Using Fiedler’s ModelUsing Fiedler’s Model

Can combine leader-member relations, task structure, and position power to identify leadership situations.

Identifies situations where given types of managers might perform best.

Seen in Figure 13.4. Leader style is a characteristic managers cannot change.

Thus, managers will be most effective when:1) They are placed in leadership situations that suit their

style.

2) The situation can be changed to fit the manager.

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House’s Path-Goal ModelHouse’s Path-Goal Model

Model suggests that effective leaders motivate workers to achieve by:1) Clearly identifying the outcomes workers are trying to

achieve.

2) Reward workers for high-performance and attainment.

3) Clarifying the paths to the attainment of the goals. Path-Goal is a contingency model since it proposes the

steps managers should take to motivate their workers. Based on Expectancy Theory.

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Steps to Path-GoalSteps to Path-Goal

1) Determine the outcomes your subordinates are trying to obtain. Can range from pay to job security or interesting work.

Once outcomes determined, manager needs to be sure they have the reward power to provide these.

2) Reward subordinates for high-performance and goal attainment with the desired outcomes.

3) Clarify the paths to goal attainment for workers, remove obstacles to performance, and express confidence in worker’s ability.

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Motivating with Path-goalMotivating with Path-goal Path-goal identifies four behaviors leaders can use:

1) Directive behaviors: set goals, assign tasks, show how to do things.

2) Supportive behavior: look out for the worker’s best interest.

3) Participative behavior: give subordinates a say in matters that affect them.

4) Achievement-oriented behavior: Setting very challenging goals, believing in worker’s abilities.

Which behavior should be used depends on the worker and the tasks.

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Behavioral Approach to Leadership

Theory X (Authoritarian)Most employees dislike work and will avoid it whenever possible.

Because most people dislike work, they have to be pushed, closely supervised, and

threatened with punishment to get them to help achieve the objectives of the organization.

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Behavioral Approach to Leadership

THEORY Y ( DEMOCRATIC) Most people find work as natural as play or rest, and their attitude toward work is related to their experiences with it.

People don’t have to be threatened with punishment to be motivated to assist an organization to accomplish its goal.

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Michigan & Ohio Studies

MICHIGAN STUDIES

OHIO STUDIESHIGH CONSIDERATION

EMPLOYEE CENTEREDJOB CENTRED

INITIATING STRUCTURE

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Managerial Grid

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Situational leadership

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HERSEY AND BLANCHARD SITUATIONAL LEADERSHIP THEORY

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Leader-Substitute ModelLeader-Substitute Model Leadership substitute: acts in the place of a leader and

makes leadership unnecessary. Possible substitutes can be found: Characteristics of Subordinates: their skills,

experience, motivation. Characteristics of context: the extent to which work is

interesting and fun. Worker empowerment or Self-managed work teams

reduce leadership needs. Managers need to be aware that they do not always need

to directly exert influence over workers.

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Transformational LeadershipTransformational Leadership

Started with von Pierer, CEO of Siemens, and allows dramatic improvements in management effectiveness.

Transformational managers: Make subordinates aware of how important their jobs

are by providing feedback to the worker. Make subordinates aware of their own need for

personal growth and development. Empowerment of workers, added training help.

Motivate workers to work for the good of the organization, not just themselves.

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Transformational LeadersTransformational Leaders Transformational leaders are charismatic and have a

vision of how good things can be. They are excited and clearly communicate this to

subordinates. Transformational leaders openly share information with

workers. Everyone is aware of problems and the need for change. Empowers workers to help with solutions.

Transformational leaders engage in development of workers. Manager works hard to help them build skills.

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Transactional LeadershipTransactional LeadershipInvolves managers using the reward and coercive power to encourage high performance.

Managers who push subordinates to change but do not seem to change themselves are transactional.

The transactional manager does not have the “vision” of the Transformational leader.

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Gender and LeadershipGender and Leadership

The number of women managers is rising but still relatively low in top levels.

Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused. Research indicates that actually there is no gender-based

difference in leadership effectiveness. However, women are seen to be more participative than

men.