Chapter 17 Managers as a Leades.pptx

Managers as a Overview of Leadership in Business Management Leader and Leadership Leader is someone who can influence others and who has managerial authority. Leadership is what leaders do. It’s a process of leading a group and influencing that group to achieve its goals. Table of contents &...

Managers as a Overview of Leadership in Business Management Leader and Leadership Leader is someone who can influence others and who has managerial authority. Leadership is what leaders do. It’s a process of leading a group and influencing that group to achieve its goals. Table of contents & Learning Objectives Contemporary views Early Theories Describe contemporary views of Compare and contrast early theories of leadership. leadership. Contingency theories Contemporary Issues Describe the three major contingency Discuss contemporary issues theories of leadership. affecting leadership. Early Theories a) Leadership Trait Theories b) Leadership Behaviour Theories 1. University of Iowa (Leadership Styles) 2. The Ohio State Studies 3. University of Michigan Studies 4. The Managerial Grid Leadership Trait Theories Drive Desire to lead Honesty and integrity Leaders exhibit a high eff ort Leaders have a strong desire to Leaders build trusting relationships with level. They have a relatively high influence and lead others. They followers by being truthful or non- desire for achievement, they are demonstrate the willingness to deceitful and by showing high ambitious, they have a lot of take responsibility. consistency between word and deed. energy, they are tirelessly persistent in their activities, and they show initiative. Leadership Trait Theories Self-confidence Intelligence Followers look to leaders for an absence of Leaders need to be intelligent enough to self-doubt. Leaders, therefore, need to gather, synthesize, and interpret large show self-confidence to convince followers amounts of information, and they need of the rightness of their goals and to be able to create visions, solve decisions. problems, and make correct decisions. Job-relevant knowledge Extraversion Effective leaders have a high degree of Leaders are energetic, lively people. knowledge about the company, industry, They are sociable, assertive, and rarely and technical matters. In-depth knowledge silent or withdrawn. allows leaders to make well-informed decisions and to understand the implications of those decisions. Leadership Behavior Theories 1- University of Iowa (Leadership Styles) Democratic style of leadership Autocratic Democratic Laissez-faire was most effective, although later studies showed mixed results Dictating work methods, Involving subordinates, Giving group freedom to centralizing decision delegating authority, and make decisions and making, and limiting encouraging participation complete work participation Do (X) or (Y), Do (X) Which is Better (X) as you like? or (Y) ? Leadership Behavior Theories 2- Ohio State Consideration: being considerate of followers’ ideas and feelings Initiating structure: structuring work and work relationships to meet job goals High–high leader achieved high subordinate performance and satisfaction, but not in all situations Leadership Behavior Theories 3- Michigan University Employee oriented: emphasized interpersonal relationships and taking care of employees’ needs Production oriented: emphasized technical or task aspects of job Employee-oriented leaders were associated with high group productivity and higher job satisfaction. Leadership Behavior Theories 4- Managerial Grid Concern for people: measured leader’s concern for subordinates on a scale of 1 to 9 (low to high) Concern for production: measured leader’s concern for getting job done on a scale 1 to 9 (low to high) Leaders performed best with a 9,9 style (high concern for production and high concern for people). Contingency theories a) The Fiedler Model b) Situational Leadership Theory (SLT) c) Path-Goal Model The Fiedler Model Leadership Style Task Oriented Task Relationship Oriented Oriented Situational factors Relationship Oriented Leader–member Good Poor relations High Low Task Structure Position Power Strong Weak Situational Leadership Theory (SLT) a) Telling (high task–low relationship): The leader defines roles and tells people what, how, when, and where to do various tasks. b) Selling (high task–high relationship): The leader provides both directive and supportive behavior. c) Participating (low task–high relationship): The leader and followers share in decision making; the main role of the leader is facilitating and communicating. d) Delegating (low task–low relationship): The leader provides little direction or support. Path-Goal Model Participative Directive Let subordinates know what’s Consults with group members expected of them, schedules and uses their suggestions work to be done and gives before making a decision. specific guidance on how to accomplish tasks. Achievement Oriented Supportive Sets challenging goals and Shows concern for the needs expects followers to perform of followers and is friendly at their highest level.  effective leaders Must adapt their behavior to meet the specific needs of their followers, guiding them along the path to success. By doing so, a leader can significantly enhance their team's motivation, satisfaction, and overall performance Contemporary views a) Leader–Member Exchange (LMX) Theory b) Transformational-Transactional Leadership c) Charismatic-Visionary Leadership d) Team Leadership Leader–Member Exchange (LMX) Theory Leader–member exchange theory (LMX) says that leaders create in-groups and out-groups and those in the in-group will have higher performance ratings, less turnover, and greater job satisfaction. It’s not exactly clear how a leader chooses who falls into each category, but evidence shows that in-group members have: o Similarities with the leader (demographic, attitude, personality, and even gender) o higher-level of competence than out-group members. Transformational-Transactional Leadership Transformational Leader Transactional Leader leader who led primarily by using social Stimulates and inspires (transforms) followers exchanges (or transactions). to achieve extraordinary outcomes. Transactional leaders guide or motivate They pay attention to the concerns and followers to work toward established goals by developmental needs of individual followers exchanging rewards for their productivity. They are able to excite, arouse, and inspire followers to exert extra effort to achieve goals  Charismatic-Visionary Leadership Is an enthusiastic, self-confident leader whose Is a leader how has ability to create and personality and actions influence people to behave in articulate a realistic, credible, and certain ways. attractive vision of the future that improves upon the present situation The most comprehensive analysis identified five such characteristics: There are many traits that visionary o they have a vision leaders possess to varying degrees. For o the ability to articulate that vision example, they are big-picture thinkers o a willingness to take risks to achieve that that are enthusiastic and able to inspire vision others to share their goals. o a sensitivity to both environmental constraints and follower needs o behaviors that are out of the ordinary. Charismatic leader Visionary leader Team Leadership The challenge for many managers is learning how to become an effective team leader. They must learn skills such as: patiently sharing information being able to trust others and to give up authority. understanding when to intervene. And eff ective team leaders have mastered the diffi cult balancing act of knowing when to leave their teams alone and when to get involved. Contemporary Issues a) Managing Power b) Leading Across Cultures c) Developing Trust d) Empowering Employees e) Becoming an Effective Leader Manageing Power Expert power Legitimate power Reward power is power that’s based on expertise, special skills, or is the power to give positive knowledge. Legitimate power have the rewards. Expert Power is the same meaning of Authority. A reward can be anything that capabilities That gives this Legitimate power is the power a person values such as person influencing power. a leader has because of his or money, favorable performance her position. appraisals. Referent power Coercive power It is the power that arises because of a person’s desirable is the power a leader has to resources or personal traits. punish or control. Referent power develops out of Followers react to this power admiration of another and a out of fear of the negative desire to be like that person. results that might occur if they don’t comply Leading Across Cultures National culture affects leadership style because it influences how followers will respond. Leaders can’t (and shouldn’t) just choose their styles randomly. They’re constrained by the cultural conditions their followers have come to expect. Developing Trust Integrity: honesty and truthfulness Competence: technical and interpersonal knowledge and skills Credibility: in terms of his or her honesty, competence, and ability to inspire. Consistency: reliability, predictability, and good judgment Trust: is defined as the belief in the integrity, in handling situations character, and ability of a leader. Loyalty: willingness to protect a person, physically and Research has identified five dimensions that emotionally make up the concept of trust: Openness: willingness to share ideas and information freely Empowering Employees Managers are increasingly leading by empowering their employees. o One reason more companies are empowering employees is the need for quick decisions by those people. o Another reason is that organizational downsizings left many managers with larger spans of control. Empowerment can be beneficial when employees have the knowledge, skills, and experience to do their jobs competently Becoming an Effective Leader Leader Training Leadership Substitutes Organizations around the globe spend Certain individual, job, and organizational billions on leadership training and variables can act as “substitutes for development. leadership,” For instance, evidence indicates that For instance, follower characteristics such leadership training is more likely to be as experience, training, professional successful with individuals who are high orientation, or need for independence can self-monitors than with low self-monitors. neutralize the eff ect of leadership. These characteristics can replace the employee’s need for a leader’s support or ability to create structure and reduce task ambiguity.