BBA 1564 Principles of Management PDF

ninth edition BBA 1564 STEPHEN P. ROBBINS MARY COULTER PRINCIPLES OF MANAGEMENT 1PowerPoint Presentation by Charlie Cook The University of West Alabama BBA 1564...

ninth edition BBA 1564 STEPHEN P. ROBBINS MARY COULTER PRINCIPLES OF MANAGEMENT 1PowerPoint Presentation by Charlie Cook The University of West Alabama BBA 1564 ninth edition STEPHEN P. ROBBINS MARY COULTER Leadership and Trust TOPIC 7 PowerPoint Presentation by Charlie Cook The University of West Alabama  Chapter 7: Leadership and Trust Learning Outcomes Successful students will be able to: - Define leader and leadership. - Describe the types of different leadership styles. - Describe modern views of leadership and the issues facing today’s leaders. 2005V1.0 MGT104 3  Defining Leadership The process of inspiring others to work hard to accomplish important tasks. Leadership is “a process whereby an individual influences a group of individuals to achieve a common goal” (Northouse, 2010, p. 3) MGT104 2005V1.0 4  Leadership Contemporary leadership challenges: Shorter time frames for accomplishing things. Expectations for success on the first attempt. Complex, ambiguous, and multidimensional problems. Taking a long-term view while meeting short-term demands. 2005V1.0 MGT104 5 Leading Viewed in Relationship to the Other Management Functions 2005V1.0 MGT104 7  Early Leadership Theories o Great Man Theory o Trait Theory o Behavioural Theory - The Managerial Grid o Contingency Theories - The Fiedler Model - Hersey and Blanchard’s Situational Leadership Theory o Path-Goal Model 2005V1.0 MGT104 8  Contemporary Leadership Theories o Transformational- Transactional Leadership o Charismatic-Visionary Leadership o Servant Leadership o Team Leadership 2005V1.0 MGT104 9  Great MAN Theory Possess special traits. Traits responsible for assuming power and authority positions. 2005V1.0 MGT104 10  Traits Theory  The trait theory takes the position that physical and psychological characteristics has a bearing on effective leadership.  The trait theory essentially considers traits such as personality, physical, social, and intellectual traits in differentiating leaders from non-leaders.  The trait theory takes the view that people who have certain inherited qualities and traits make them better leader.  They have common traits such as intelligence, attractiveness, determination, self-confidence, sociability, creativity, and integrity.  The trait theory was the beginning of the modern study of leadership.  Characteristics That Determine a Leader  Traits that are important for leadership success: – Drive – Self-confidence – Creativity – Cognitive ability – Business knowledge – Motivation – Flexibility – Honesty and integrity 2005V1.0 MGT104 12  Behaviour Theory The behavioural theories were largely influenced by Douglas McGregor’s writings which emphasised human relationships. The behavioural theory was also known as the style approach. The three leadership styles that were studied: autocratic, democratic, and leissez-faire. The behavioural approach assumed that leaders could be made rather than born hence it implies that leaders can be trained.  Behaviour Theory o Leadership behavior … – Leadership behavior theories focus on how leaders behave when working with followers. – Leadership styles are recurring patterns of behaviors exhibited by leaders. – Basic dimensions of leadership behaviors: Concern for the task to be accomplished. Concern for the people doing the work. Behaviour Theory  Contingency Theory o It was the Austrian psychologist, Fred Edward Fiedler, who proposed the contingency theory of leadership. o Good leadership depends on a match between leadership and situational demands. o The central core teachings of the contingency models are the recognition that different situational variables require different style or approach to leadership to achieve the desired outcomes. o The theory assumed the idea that there was no one approach of leadership and leadership practice must match the situation. o Leadership style must be fit to the situation.  Contingency Theory 2005V1.0 MGT104 17  Matching leadership style and situation: summary predictions from Fiedler’s contingency theory  HB Situational Leadership Model  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. Leadership Implications of the Hersey- Blanchard Situational Leadership House’s Path-goal Leadership Theory  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  House’s Path-goal Leadership Theory  When to use House’s leadership styles: – 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.  The Nature of Leadership  Visionary leadership – Vision A future that one hopes to create or achieve in order to improve upon the present situation. – 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.  The Nature of Leadership Visionary Leaders ( cont’d…)  What skills do visionary leaders have?  The ability to explain the vision to others.  The ability to express the vision, not only verbally, but also through behavior.  The ability to extend or apply the vision to different leadership contexts.  The key properties of a vision are that it has inspirational possibilities that are value centered, are realizable, have superior imagery, and are well articulated. 2005V1.0 MGT104 24  The Nature of Leadership Visionary Leaders ( cont’d…)  If the vision is properly selected and implemented, it can energize individuals to use their skills, talents, and resources to fulfill the vision.  A vision differs from other forms of organizational direction in that it uses compelling imagery, taps into individuals’ emotions and energy, and creates the enthusiasm that people need to bring energy and commitment to the workplace. 2005V1.0 MGT104 25  The Nature of Leadership  Meeting the challenges of visionary leadership: – Challenge the process – Show enthusiasm – Help others to act – Set the example – Celebrate achievements  The Nature of Leadership  Transactional leadership – Someone who directs the efforts of others through tasks, rewards, and structures.  What is Transformational Leadership?  Transformational leadership – Someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments.  What is Transformational Leadership?  Characteristics of transformational leaders: – Vision – Charisma – Symbolism – Empowerment – Intellectual stimulation – Integrity  Dimensions of Transformational Leadership 2005V1.0 MGT104 30  Dimensions of Transformational Leaders 2005V1.0 MGT104 31  What is Charismatic Leadership Charismatic Leaders – Develop special leader-follower relationships and inspire others in extraordinary ways.  Five personal characteristics of charismatic leaders have been identified. Charismatic leaders:  a. Have a vision.  b. Are able to articulate that vision.  c. Are willing to take risks to achieve that vision  d. Are sensitive to both environmental constraints and follower needs.  e. Exhibit behaviors that are out of the ordinary. 2005V1.0 MGT104 32  What is Charismatic Leadership Charismatic Leaders ( cont’d…)  Research shows impressive correlations between charismatic leadership and high performance and satisfaction among followers.  Most experts think that individuals can be trained to exhibit charismatic behaviors.  Charismatic leadership may not always be needed to achieve high levels of employee performance. This type of leadership may be most appropriate when an employee’s job has a significant amount of ideological content. 2005V1.0 MGT104 33  Servant Leadership 2005V1.0 MGT104 34  Team Leadership As work teams become more prevalent in the workplace, the role of team leader becomes increasingly important.  The existence of work teams necessitates that managers learn how to become effective team leaders.  Skillful team leaders master the difficult balancing act of knowing when to leave their teams alone and when to become involved. 2005V1.0 MGT104 35  Team Leadership A team leader has two priorities:  Managing the team’s external boundaries.  Facilitating the team process. These two priorities can be broken down into four specific leadership roles:  Liaisons with external constituencies  Troubleshooters  Conflict managers  Coaches 2005V1.0 MGT104 36  Team Leadership 2005V1.0 MGT104 37  Current Issues in Leadership Development?  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 Current Issues in Leadership Development?  Gender differences and leadership – Both women and men can be effective leaders. – Women tend to use interactive leadership. A style that shares qualities with transformational leadership. – Men tend to use transactional leadership. – Interactive leadership provides a good fit with the demands of a diverse workforce and the new  Current Issues in Leadership Development?  Gender and leadership (cont.) – Future leadership success will depend on a person’s capacity to lead through : Openness Positive relationships Support Empowerment  Where Female Managers Do Better: A Scorecard Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75. 2005V1.0 MGT104 41  Current Issues in Leadership Development?  Moral leadership – Ethical leadership adheres to moral standards meeting the test of “good” rather than “bad” and “right” rather than “wrong.” – All leaders are expected to maintain high ethical standards. – Long-term, sustainable success requires ethical behavior. – Integrity involves the leader’s honesty, credibility, and consistency in putting values into action.  Current Issues in Leadership Development?  Moral leadership (cont.) – Leaders with integrity earn the trust of their followers. – Leaders have a moral obligation to build performance capacities by awakening people’s potential. – Authentic leadership activates performance through the positive psychological states of confidence, hope, optimism, and resilience. – Authentic leadership helps in clearly framing and responding to moral dilemmas and serving as ethical role models.  Suggestions for Building Trust Research has identified five dimensions that make up the concept of trust: a. Integrity (honesty and truthfulness). b. Competence (technical and interpersonal knowledge and skills). c. Consistency (reliability, predictability, and good judgment in handling situations). d. Loyalty (willingness to protect a person, physically and emotionally). e. Openness (willingness to share ideas and information 2005V1.0 MGT104 44 freely).  Selected Cross-Cultural Leadership Findings Korean leaders are expected to be paternalistic toward employees. Arab leaders who show kindness or generosity without being asked to do so are seen by other Arabs as weak. Japanese leaders are expected to be humble and speak infrequently. Scandinavian and Dutch leaders who single out individuals with public praise are likely to embarrass, not energize, those individuals. Effective leaders in Malaysia are expected to show compassion while using more of an autocratic than a participative style. Effective German leaders are characterized by high performance orientation, low compassion, low self-protection, low team orientation, high autonomy, and high participation. Source: Based on J. C. Kennedy, “Leadership in Malaysia: Traditional Values, International Outlook,” Academy of Management Executive, August 2002, pp. 15– 17; F.C. Brodbeck, M. Frese, and M. Javidan, “Leadership Made in Germany: Low on Compassion, High on Performance,” Academy of Management Executive, February 2002, pp. 16–29; M. F. Peterson and J. G. Hunt, “International Perspectives on International Leadership,” Leadership Quarterly, Fall 1997, pp. 203–31; R. J. House and R. N. Aditya, “The Social Scientific Study of Leadership: Quo Vadis?” Journal of Management, vol. 23, no. 3, (1997), p. 463; and R. J. House, “Leadership in the Twenty-First Century,” in A. Howard (ed.), The Changing Nature of Work (San Francisco: Jossey-Bass, 1995), p. 442. 2005V1.0 MGT104 45 Leadership experts cite the following reasons why leaders fail: arrogant, distant, eccentric, impulsive, interpersonal insensitivity, perfectionist, volatile, argumentative, and cautious. Why do you think these factors might lead to leadership failure? What could leaders do to avoid these?  The factors listed above are symptoms of an individual who has not fully matured in a leadership role. Effective leaders have learned to consider the well-being of their employees as a number one priority. Workers tend to treat customers and clients as they themselves have been treated by managers. Wise managers know that one of the best means of attaining success and to gaining satisfied, loyal customers is to treat employees with dignity and respect.  Leaders should imagine themselves in the shoes of their employees and other stakeholders. Simply by following The Golden Rule (“Do unto others as you would have them do unto you”), managers could avoid many undesirable characteristics, such as the qualities listed above. 2005V1.0 MGT104 46