Chapter 14 - Leadership - Contemporary Management

Because learning changes everything. ® Chapter 14 Leadership © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.  Learning Obj...

Because learning changes everything. ® Chapter 14 Leadership © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.  Learning Objectives 1 1. Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. 2. Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership. 3. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations. © McGraw Hill 2  Learning Objectives 2 4. Describe what transformational leadership is, and explain how managers can engage in it. 5. Characterize the relationship between gender and leadership, and explain how emotional intelligence may contribute to leadership effectiveness. © McGraw Hill 3  The Nature of Leadership 1 Leadership: The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. © McGraw Hill 4  The Nature of Leadership 2 Leader: An individual who is able to exert influence over other people to help achieve group or organizational goals. Effective leadership increases an organization’s ability to meet all contemporary challenges, including the need to obtain a competitive advantage, the need to foster ethical behavior, and the need to manage a diverse workforce fairly and equitably. © McGraw Hill 5  The Nature of Leadership 2 Leader: Distinction between managers and leaders: Managers establish and implement procedures to ensure smooth functioning. Leaders look to the future and chart the course for the organization. Leaders may delegate and support employees, while others are very authoritarian. The challenge is for managers at all levels to develop an effective personal management style. © McGraw Hill 6  Figure 14.1 Sources of Managerial Power © McGraw Hill 7  Power: The Key to Leadership 1 Legitimate power: The authority that a manager has by virtue of his or her position in an organization’s hierarchy. Legitimate power allows a manager to hire and fire employees. © McGraw Hill 8  Power: The Key to Leadership 1 Reward power: The ability of a manager to give or withhold tangible and (pay raises, bonuses, and choice job assignments) as well as intangible rewards. (verbal praise, a pat on back, or respect.) Effective managers use their reward power to show appreciation for employees’ good work and effort. Ineffective managers use rewards in a more controlling manner that signals to subordinates that the manager has the upper hand. © McGraw Hill 9  Power: The Key to Leadership 2 Coercive power: Coercive power is the ability of a manager to punish others. Overuse of coercive power can even result in dangerous working conditions. Examples of punishment include verbal reprimand, pay cuts, and dismissal. Managers who rely heavily on coercive power tend to be ineffective as leaders, and sometimes even get fired themselves. © McGraw Hill 10  Power: The Key to Leadership 3 Expert power: Power that is based on special knowledge, skills, and expertise that the leader possesses. Tends to be used in a guiding or coaching manner. The nature of expert power varies, depending on the leader’s level in the hierarchy. First-level and middle managers often have technical expertise relevant to the tasks their employees perform. Their expert power gives them considerable influence over employees. © McGraw Hill 11  Power: The Key to Leadership 4 Referent power: Power that comes from employees’ and coworkers’ respect, admiration, and loyalty. Possessed by managers who are likable and whom employees wish to use as a role model. Managers can increase their referent power by taking time to get to know their employees and showing interest in them. © McGraw Hill 12  Trait and Behavior Models of Leadership 1 Early approaches to leadership, the trait model and the behavior model, sought to determine what effective leaders are like as people, and what they do that makes them so effective. Trait model: Focused on identifying personal characteristics that produce effective leadership. Leader’s skills, abilities, knowledge, and expertise. © McGraw Hill 13  Table 14.1 Traits Related to Effective Leadership Trait Description Intelligence Helps managers understand complex issues and solve problems Knowledge and Help managers make good decisions and discover ways to expertise increase efficiency and effectiveness Dominance Helps managers influence their subordinates to achieve organizational goals Self-confidence Contributes to managers effectively influencing subordinates and persisting when faced with obstacles or difficulties High energy Helps managers deal with the many demands they face Tolerance for stress Helps managers deal with uncertainty and make difficult decisions Integrity and Help managers behave ethically and earn their subordinates’ trust honesty and confidence Maturity Helps managers to avoid acting selfishly, control their feelings, and admit when they have made a mistake. © McGraw Hill 14  Trait and Behavior Models of Leadership 2 Behavioral model: Identifies the two basic types of behavior that many leaders engaged in to influence their employees. Consideration and initiating structure. Costco’s consideration: “Take Care of Our Employees.” Costco ranked #4 in Forbes’ 2019 America’s Best Large Employers list. © McGraw Hill 15  The Behavior Model Consideration: Behavior indicating that a manager trusts, respects, and cares about employees. Managers look out for the well-being of their employees. Managers do what they can to help employees feel good and enjoy the work they perform. © McGraw Hill 16  The Behavior Model Initiating structure: Behavior that managers engage in to ensure that work gets done, employees perform their jobs acceptably, and the organization is efficient and effective. Examples of initiating structure include: Assigning tasks to individuals or work groups. Letting subordinates know what is expected of them. Deciding how work should be done. Making schedules. Encouraging adherence to rules and regulations. Motivating subordinates to do a good job. © McGraw Hill 17  The Behavior Model Leadership researchers at the University of Michigan have identified leader behaviors similar to consideration and initiating structure: employee-centered behaviors and job-oriented behaviors. Blake and Mouton’s Managerial Grid: concern for people and concern for production. Hersey and Blanchard: supportive behavior and task-oriented behavior. © McGraw Hill 18  Situational Approaches: An approach to leadership advocating that leaders understand their own behavior, behavior of subordinates, and situation before utilizing a particular leadership style. It suggests that leadership effectiveness is a function of various aspects of leadership situations. Example: Situational Leadership model: Leader must properly judge or know followers’ maturity level and then use a leadership style that fits their readiness level. © McGraw Hill 19 20 Situational Leadership model: Readiness level: the ability & willingness of people (followers) to take responsibility for directing their own behavior. Two types of readiness: Job: a person high in job readiness has knowledge &abilities to perform the job without a manager structuring or directing the work. Psychological: a person high in psychological readiness has self-motivation and desire to do high-quality work., has little need for direct supervision. © McGraw Hill 20 © McGraw Hill 21 22 Situational Leadership model: Hersey and Blanchard used Ohio State Studies to develop four leadership styles available to managers: 1. Telling: leader defines roles needed to do the job & tells followers what, where, how and when to do the tasks. (instruction, close supervision) 2. Selling: leader provides followers with structured instructions but is also supportive. (explain, clarify), 3. Participating: leader and followers share in decisions about how best to complete high quality job. (share ideas, facilitate D.M) 4. Delegating :leader provides little specific close direction or personal support to followers (turn over responsibility, little direction) Choice depend on the readiness of followers, you select leadership style that fits maturity of followers. (Unable, unwilling --- Unable, willing --- Able, unwilling --- able, willing). By determining followers’ readiness level through discussion, observations, field surveys, interviews, manager can choose from among four leadership styles. © McGraw Hill 22  Contingency Models of Leadership 1 Contingency models: Whether or not a manager is an effective leader is the result of the interplay between what CONTEXT the manager is like, what he does, and the situation in which leadership takes place. © McGraw Hill 23  Empowerment: An Ingredient in Modern Management Empowerment: Empowerment increases a manager’s ability to get The process of things done. giving employees at Empowerment increases all levels the workers’ involvement, authority to make motivation, and commitment. decisions, be responsible for their Empowerment gives outcomes, improve managers more time to concentrate on their quality, and cut pressing concerns. costs. © McGraw Hill 24  Gender and Leadership Although there are more women in management positions today than there were 10 years ago, there are still relatively few women in top management and, in some organizations, even in middle management. Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused. © McGraw Hill 25  Gender and Leadership - Research indicates that there is no gender-based difference in leadership effectiveness. - When women do advance to top management positions, special attention is often focused on the fact that they are women. - Research suggests that male and female managers in leadership positions behave in similar ways. Women do not engage in more consideration than men, and men do not engage in more initiating structure than women. © McGraw Hill 26  Gender and Leadership However, research does suggest that men and women may differ in leadership style. ❑ Women tend to be more participative than men, involving subordinates in decision-making and seeking their input. ❑ Male managers tend to be less participative than are female managers, making more decisions on their own and wanting to do things their own way. ❑ Research suggests that men tend to be harsher when they punish their subordinates than women. © McGraw Hill 27  Gender and Leadership There are at least two reasons why women leaders are more participative than male leaders: ❑ Women must sometimes work harder to overcome the resistance to their leadership and encourage subordinates’ trust and respect. ❑ They sometimes possess stronger interpersonal skills. The key finding from research on leader behaviors is that male and female managers do not differ significantly in their propensities to perform different leader behaviors. Also, across different kinds of organizational settings, male and female managers tend to be equally effective as leaders. © McGraw Hill 28