Week 8 (a) Leadership - Part I 2023 PDF

( topic 6) CHAPTER 10...

( topic 6) CHAPTER 10 Leaders and Leadership ( part 1 ) ©McGraw-Hill Education. 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 Education.  Learning Objectives (1 of 2) 10-1. Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. 10-2. 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. ©McGraw-Hill Education.  Learning Objectives (2 of 2) 10-3. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations. 10-4. Describe what transformational leadership is, and explain how managers can engage in it. ©McGraw-Hill Education.  The Nature of Leadership (1 of 4) Leadership The process by which a person use influence over other people and inspires (encourage), motivates and directs their activities to help achieve group or organisational goals simple explanation : when someone guides and helps a group of people to work together towards a common goal ©McGraw-Hill Education.  The Nature of Leadership (2 of 4) Leader An individual who is able to exert influence over other people to help achieve group or organisational goals ©McGraw-Hill Education.  Leadership Styles across Cultures Leadership styles may different among different countries or cultures. European managers tend to be more people-oriented than American or Japanese managers. Japanese managers are group- oriented. Akio Toyoda U.S managers focus more on short-term profitability. Managers in different time horizons also are affected by ©McGraw-Hill Education.  US companies typically give laid-off employees just hours to pack up. For example, workers at Tesla – which laid off 7% of its employees in 2019 – 5 minutes to leave While laid-off employees in the US typically pack up and leave immediately, Europe gives workers a few weeks to finish up projects and start their job search. ©McGraw-Hill Education.  Power Power : the key to leadership No matter what one’s leadership style, a key component of effective leadership is found in the power the leader has to affect other people’s behavior and to get them to act in certain ways. There are several types of power : legitimate , reward, coercive , expert, and referent power. Effective leaders take steps to ensure that they have sufficient level of each type and that they use their power in beneficial ©McGraw-Hill Education.  Sources of Managerial Power Figure 10.1 ©McGraw-Hill Education. Bases of Power: The Key to Leadership (1 of 3) Legitimate Power a leader has power due to his position in the organisation. He has power to reward and punish employees. E.g. Daniel Zhang, the CEO of Alibaba Group have legitimate power because of their position in the company. CEO of Alibaba Group ©McGraw-Hill Education.  Power: The Key to Leadership (1 of 3) Reward Power a leader has power due to his ability to give or withhold reward. Eg: promotion, increase salary Manager of Honda dealership often use their reward power (i.e. commission, increment and bonus) to motivate their workers. ©McGraw-Hill Education.  Power: The Key to Leadership (2 of 3) Coercive Power a leader has power due to his ability to punish employees. Eg: warning letter, scold, lower bonus Netflix CEO Reed Hastings reportedly routinely performs a ‘keeper test’ — and used it to fire his product chief and longtime friend after 18 years - managers felt pressured into firing people or “risk looking soft.” ©McGraw-Hill Education. Expert Power a leader has power due to he has certain knowledge or skill that is important to the company. At Harvard, he had already achieved a "reputation as a programming prodigy" -Studied psychology & computer science Facebook founder, Mark Zuckerberg -Software develop Fixing programming code himself - Facebook ©McGraw-Hill Education.  Power: The Key to Leadership (3 of 3) Referent Power a leader has power because the employees admire and respect him mostly due to his personality. Elon Musk has referent power. The followers that work for him are proud to do so, and share his core value ©McGraw-Hill Education. of using technology for © Paul Sancya/AP Images  Trait and Behavior Models of Leadership Trait Model to identify what are the trait (personal characteristics) that make a person become effective leaders. Eg: of these traits are confidence, clever, can be ©McGraw-Hill Education. traits description Intelligence ( clever ) Helps managers understand complex issues and solve problems Knowledge and expertise Help managers make good decisions and discover ways to increase efficiency and effectiveness. Dominance ( action of taking control Helps managers influences their of other people) subordinates to achieve organisational goals. Self -confidence Contributes to managers ‘ effectively influencing subordinates and persisting when faced with difficulties. High energy Helps managers deal with the many demands they face Tolerances for stress Helps managers deal with uncertainty and make difficulty decisions. Integrity and honesty Helps managers behave ethically and earn their subordinates’ trust and ©McGraw-Hill Education.  The Behavior Model (1 of 2) Behavior Model Identifies the two basic types of behavior that many leaders engage in to influence their subordinates: (1)Relationship oriented (consideration) and (2)Task oriented (initiating ©McGraw-Hill Education.  The Behavior Model (2 of 2) 1.Relationship oriented 2.Task oriented (Consideration) (Initiating Structure) Behavior that a manager Behaviour that manager want employees to show trusts, respects, and good performance and _care____ about achieve goal, manager will employees set _goal___ , give clear instruction ©McGraw-Hill Education.  Contingency Models of Leadership (1 of 3) Contingency Models The effectiveness of leadership is based on __situation_______. In different situation different leadership behavior is more effective ©McGraw-Hill Education.  Contingency Models of Leadership (2 of 3) Fiedler’s Model (one of the contingency model) The _situation that a leaders is facing (eg whether employees support him or not, whether the job instruction is clear or not) and the Leaders’ behavior (task oriented and relationship oriented) will affect whether leadership is effective or not Eg in situation that employees support him , leadership is more ©McGraw-Hill Education.  Contingency Models of Leadership (3 of 3) Relationship- Task-Oriented Oriented Leaders(use Leaders (use back the same back the same explanation as explanation as initiating str consideration) Leaders whose Leaders whose primary primary concern is to concern is to ensure develop good that subordinates relations with their perform at a high level subordinates and to be and focus on task liked by them accomplishment ©McGraw-Hill Education.  Situational characteristics According to Fieldler, leadership style is an enduring characteristic ; managers cannot change their style, nor can they adopt different styles in different kinds of situations. With this in mind, Fieldler identified three situational characteristics that are important determinants of how favorable a situation is for leading: leader-member relations, task structure, and position power. When a situation is favorable for leading , it is relatively easy for a manager to influence subordinates so they perform at a high level and contribute to organization efficiently and effectiveness. In a situation unfavorable for leading , it is much more difficult for a manager to exert influence. ©McGraw-Hill Education. 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 Education. 3 situational characteristics in Fiedler’s Model (1 of 2) Leader–Member Relations The extend to which followers _support____, trust, and are loyal to their leader Task Structure The extent to which work is _clear cut ______ so that employees knows what to be achieve and how to do the work ©McGraw-Hill Education.  3 situational characteristics in Fiedler’s Model Position Power The amount of __power___ that a leaders has base on his position in the company. If leader has strong position power, more effective ©McGraw-Hill Education.  Fiedler’s Contingency Theory of Leadership Figure 10.2 Jump to Appendix 1 long image description. ©McGraw-Hill Education.  House’s Path-Goal Theory Path-Goal Theory states that effective leaders motivate followers to achieve goals by: Clearly let employees know that what _goal____ they need to achieve If employees can achieve these goals, _reward____ them __show___ them the way how to achieve the goal ©McGraw-Hill Education.  House’s Path-Goal Theory (2 of 3) Path goal theory identified 4 kinds of leadership behavior that motivate subordinates : Directive Behaviors (use same explanation as task oriented behavior) Setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete (visible)steps to improve performance ( leader give you clear instructions on what to do and how to do it ) Supportive Behavior (use same explanation as relationship oriented ) Expressing concern for followers and looking out for their best interests ( leader offered you encouragement , a helping hand ) ©McGraw-Hill Education.  House’s Path-Goal Theory (3 of 3) Participative Behavior Let employees involve in decision making process ( leader ask for input, listen to ideas, and make decision together ) Achievement-Oriented Behavior ©McGraw-Hill Education. © Stockbyte/Getty Images RF Leadership behavior Situation (Kind of work they do) Directive => workers have difficulty completing task Supportive => workers faced high level of stress Participative => worker’s support of a decision is required Achievement => highly capable workers ©McGraw-Hill Education.