Contemporary Management Chapter 14 Leadership - PDF

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...

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. © McGraw Hill 5  Personal Leadership Style and Managerial Tasks 1 Personal leadership style: Specific ways in which a manager chooses to influence others. Shapes the way the manager approaches the other principal tasks of management. Abby Woods, of a Chicago tea shop takes a hands-on approach. She organizes, plans, and controls. Employees perform highly, are satisfied, and the shop is profitable. © McGraw Hill 6  Personal Leadership Style and Managerial Tasks 2 Servant leader: A leader who has a strong desire work for the benefit of others. Robert Greenleaf of AT&T founded Greenleaf Center for Servant Leadership. © McGraw Hill 7  Leadership across Cultures European managers tend to be more people- oriented than American or Japanese managers. Japanese managers are group-oriented, while U.S managers focuses more on profitability. Time horizons also are affected by cultures. © McGraw Hill 8  Figure 14.1 Sources of Managerial Power © McGraw Hill 9  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. Reward power: The ability of a manager to give or withhold tangible and intangible rewards. © McGraw Hill 10  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 include verbal reprimand, pay cuts, and dismissal. © McGraw Hill 11  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. © McGraw Hill 12  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. © McGraw Hill 13  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 14  Trait and Behavior Models of Leadership 1 Trait model: Focused on identifying personal characteristics that produce effective leadership. Leader’s skills, abilities, knowledge, and expertise. © McGraw Hill 15  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 16  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 17  The Behavior Model Consideration: Behavior indicating that a manager trusts, respects, and cares about employees. 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. © McGraw Hill 18  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 19  Contingency Models of Leadership 2 Fiedler’s model: Effective leadership is contingent on both the characteristics of the leader and the situation. Leader style is a manager’s characteristic approach to leadership. Two basic leadership styles: Relationship-oriented. Task-oriented. © McGraw Hill 20  Fiedler’s Contingency Model Relationship-oriented style: Leaders concerned with developing good relations with their employees and being liked by them. Task-oriented style: Leaders whose primary concern is to ensure that employees perform at a high level so the job gets done. © McGraw Hill 21  Fiedler’s Model Situation Characteristics 1 Leader-member relations: Extent to which followers like, trust, and are loyal to their leader. Task structure: Extent to which the work to be performed is clear- cut so that a leader’s employees know what needs to be accomplished and how to accomplish it. © McGraw Hill 22  Fiedler’s Model Situation Characteristics 2 Position power: Amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization. Determinant of how favorable a situation is for leading. © McGraw Hill 23  Figure 14.2 Fiedler’s Contingency Theory of Leadership Access the text alternative for slide images. © McGraw Hill 24  House’s Path-Goal Theory A contingency model of leadership proposing that effective leaders can motivate employees to achieve goals by: 1. Clearly identifying the outcomes that employees are trying to obtain from their jobs. 2. Rewarding employees with these outcomes for high- performance and attainment of work goals. 3. Clarifying the paths leading to the attainment of work goals. © McGraw Hill 25  Path-Goal Leadership Behaviors 1 Directive behaviors: Setting goals, assigning tasks, showing employees how to complete tasks, and taking concrete steps to improve performance. Supportive behavior: Expressing concern for employees and looking out for their best interests. © McGraw Hill 26  Path-Goal Leadership Behaviors 2 Participative behaviors: Give employees a say in matters and decisions that affect them. Achievement-oriented behavior: Setting challenging goals, expecting that they be met, and believing in employees’ capabilities. © McGraw Hill 27  The Leader Substitutes Model 1 Leadership substitute: Members of an It is characteristic of an organization can employee or of a sometimes perform situation or context that well without a acts in place of the manager exerting influence of a leader influence over and makes leadership them. unnecessary. © McGraw Hill 28  The Leader Substitutes Model 2 Possible substitutes can be found in: Characteristics of the employees: Skills, experience, motivation. Characteristics of context: Extent to which work is interesting and fun. © McGraw Hill 29  Table 14.2 Contingency Models of Leadership Model Focus Key Contingencies Fiedler’s Describes two leader styles, Whether a relationship-oriented contingency relationship-oriented and or a task-oriented leader is model task-oriented, and the kinds effective is contingent on the of situations in which each situation. kind of leader will be most effective. House’s path- Describes how effective The behaviors that managers goal theory leaders motivate their should engage in to be effective followers. leaders are contingent on the nature of the employees and the work they do. Leader Describes when leadership Whether leadership is necessary substitutes is unnecessary. for employees to perform highly model is contingent on characteristics of the employees and the situation. © McGraw Hill 30  Transformational Leadership A transformational leader makes employees aware of how important their jobs are for the organization and how necessary it is for them to perform those jobs as best they can so that the organization can attain its goals. A transformational leader makes employees aware of their own needs for personal growth, development, and accomplishment. A transformational leader motivates workers to work for the good of the organization, not just for their own personal gain or benefit. © McGraw Hill 31  Being a Charismatic Leader Charismatic leader: An enthusiastic, self-confident transformational leader able to clearly communicate his vision of how good things could be. Being excited and clearly communicating excitement to employees. Openly sharing information with employees so that everyone is aware of problems and the need for change. © McGraw Hill 32  Stimulating Employees Intellectually Intellectual stimulation: Behavior a leader engages in to make employees aware of problems and make them view these problems in new ways, consistent with the leader’s vision. © McGraw Hill 33  Engaging in Developmental Consideration Developmental consideration: Manager supports and encourages employees, giving them opportunities to enhance their skills and capabilities and to grow and excel on the job. © McGraw Hill 34  The Distinction between Transformational and Transactional Leadership Transactional leaders: Leadership that motivates employees by rewarding them for high performance and reprimanding them for low performance. Transformational leaders: May use transactional leadership as a tool, but see bigger picture. Employees tend to have more job satisfaction and a high level of performance, trust in leaders, and they feel fairly treated. © McGraw Hill 35  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 36  Emotional Intelligence and Leadership 1 Groups whose What behaviors should leaders experienced a manager practice in positive moods had order to lead with better coordination. emotional intelligence Groups whose (EQ)? leaders experienced Empathy. negative moods Communication exerted more effort. skills. Manage emotions. © McGraw Hill 37  Emotional Intelligence and Leadership 2 Emotional intelligence: Helps leaders develop a vision for their firm. Helps motivate employees to commit to the vision. Energizes employees to work to achieve the vision. © McGraw Hill 38  Example: Coach Roy Williams Roy Williams is the men’s basketball coach at the University of North Carolina – Chapel Hill. He has three guiding principles of leadership: 1. Everyone on the team must focus on the same goal. “It's my job to effectively communicate those goals to the team.” 2. Emphasize those goals every day. 3. Understand that although everyone has a common goal, individuals also have goals, needs, and dreams that must be cared for. © McGraw Hill 39  End of Main Content Because learning changes everything. ® www.mheducation.com © 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.