Principles of Management - Leadership PDF

Principles of Management Leadership Module Learning Outcomes Recognize good and poor leadership and the varieties of leadership 10.1: Differentiate between leadership and management 10.2: Identify the traits, dimensions, and styles of effective leaders 10.3: Compare examples...

Principles of Management Leadership Module Learning Outcomes Recognize good and poor leadership and the varieties of leadership 10.1: Differentiate between leadership and management 10.2: Identify the traits, dimensions, and styles of effective leaders 10.3: Compare examples of effective and poor leadership 10.4: Summarize the situational theories of leadership 10.5: Summarize transformational and transactional theories of leadership Leadership Learning Outcomes: Leadership 10.1: Differentiate between leadership and management 10.1.1: Differentiate between leadership and management What Is Leadership? Leadership is about establishing a direction and influencing others to follow Management is successfully administering the many complex details involved in business’s operation Both are necessary skills that often overlap Some differences include: Leadership: influencing, change, direction, vision, creating, etc. Management: planning, organizing, controlling, stability, etc. Formal vs. Informal Leadership Not all leadership based on official position Individuals who are assigned titles and positions of authority are expected to provide leadership- formal leadership Plenty of people who have formal leadership positions but don’t provide strong leadership (can leave organization lacking direction/purpose) Individuals who don’t have official positions of leadership but exhibit leadership qualities and help create vision of company- informal What Makes an Effective Leader Learning Outcomes: What Makes an Effective Leader 10.2: Identify the traits, dimensions, and styles of effective leaders 10.2.1: Identify the traits of effective leaders 10.2.2: Differentiate between task-centered and employee-centered leadership behavior 10.2.3: Differentiate between autocratic, democratic, and laissez-faire styles of leadership Leadership Traits Drive: highly motivated individuals Desire to Lead: want to have leadership roles and functions Honesty/Integrity: essential to inspiring confidence and trust from followers Self Esteem/Self-Confidence: lack of these creates doubts and insecurities Open-Mindedness: recognize innovation is valuable and are open to other ideas Intelligence: cognitive ability as well as relational and emotional intelligence Extraversion: outgoing and social in personalities Not all good leaders have to be extraverts (Bill Gates, Mark Zuckerberg) Knowledge of the Business and Styles of Leadership Lack of knowledge and experience is almost impossible to overcome Trait-based analysis of leaders is common approach and analyzing leadership styles Task-Centered or Employee- Centered Task: focus on giving instructions to group members to reach achievement Employee: focus less on objective actions and more on building relationships between followers Autocratic, Democratic, or Laissez-faire Autocratic: makes decisions without employee involvement- authoritarian Democratic: involves employee team in decision-making Laissez-faire: hands-off approach to leadership- employees make own decisions “A good leader inspires people to have confidence in the leader. A great leader inspires people to have confidence in themselves.” —Eleanor Roosevelt Practice Question 2 Which style of leadership lends itself best with a task-centered style? 1. Autocratic. 2. Democratic. 3. Laissez-faire. Effective vs. Poor Leadership Learning Outcomes: Effective vs. Poor Leadership 10.3: Compare examples of effective and poor leadership 10.3.1: Compare examples of effective and poor leadership Understanding Effective vs. Poor Leadership Compare examples of effective and poor leadership What do these traits and styles look like in practice? Will be looking at real-world examples of good and bad leadership to help deepen understanding Looking at individuals with positive and negative leadership qualities in next slides Warren Buffett, Berkshire Hathaway One of the wealthiest men in the world through leadership of investment company Thousands travel to hear his meetings and has become very successful Work is to identify companies for purchase he believes are well- managed for success Presents a vision, stands firmly behind it, and inspires others Always truthful and an optimist Rosalind Brewer, Starbucks Current COO at Starbucks, the first woman and the first African-American in this role Former CEO of Sam’s Club Forward-thinking initiatives at Sam's Clubs, doubling the amount of organic products offered and advancing online ordering Emphasis on diversity of hiring and implementation of racial bias training Navigated Starbucks through negative public opinion after racially charged arrests at one of their locations Ginni Rometty, IBM IBM is successful tech company for over 100 years Much of its legacy is in field of computer hardware systems Overseen significant shift of focus for company Democratic, soft-spoken leadership style enabled her to be successful Situational Theories of Leadership Learning Outcomes: Situational Theories of Leadership 10.4: Summarize the situational theories of leadership 10.4.1: Summarize the situational theories of leadership Understanding Situational Theories of Leadership Work on the assumption that the most effective style of leadership changes from situation to situation Leader must be able to adapt his style and approach to different circumstances Example: some employees function better under leader who is more autocratic while others prefer leader to step back and give others chance Not all industries require same skills and leadership traits- many theories developed Goleman’s Model of Situational Leadership Theory incorporates development of the concept of “emotional intelligence” Pacesetting: sets aggressive goals and standards for each employee Authoritative: provides direction and goals and expects team to follow lead Affiliative: praises and encourages employees refraining from criticism Coaching: focuses on helping individuals build skills and develop talents Democratic: involves followers in process by seeking their opinion Coercive: ultimate authority and demands immediate compliance Practice Question 3 What do all of the leadership theories we have just reviewed have in common? 1. They reflect the democratic style of leadership. 2. They require industry knowledge. 3. They match leadership style with the environment. 4. They incorporate the concept of emotional intelligence. Transformational and Transactional Theories of Leadership Learning Outcomes: Transformational and Transactional Theories of Leadership 10.5: Summarize transformational and transactional theories of leadership 10.5.1: Summarize transformational theories of leadership 10.5.2: Summarize transactional theories of leadership Transformational and Transactional Theories of Leadership Transformational Transactional Leadership Leadership Motivation is derived from an Assume that the desires of the arrangement whereby employees leader and the follower are not the are rewarded for accomplishing same- must provide motivation goals set for them Four categories: When sales representatives are paid idealized influence on commission or given bonuses inspirational motivation intellectual stimulation individualized consideration Class Discussion: What makes a leader? Are leaders born and not made? Review the list of leadership traits and discuss which of them you think can be learned versus those that are inherent in one’s personality make-up. What about management traits/duties? Are these learned versus inherent? Quick Review How does one differentiate between leadership and management? Can you identify the traits of effective leaders? Are you able to differentiate between task-centered and employee- centered leadership and behavior? Between autocratic, democratic, laissez-faire, relationship-oriented, task-oriented, and people-oriented styles of leadership? Are you able to compare examples of effective and poor leadership? Please summarize the situational theories of leadership. Can you summarize transformational and transactional leadership theories?