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PowerPoint slides by
Susan A. Peterson, Scottsdale Community College
PowerPoint slides by
Susan A. Peterson, Scottsdale Community College
Chapter 9:
Leadership
Chapter 9:
Leadership
m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r
m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r
© 2008 Prentice-Hall Business Publishing 2
Learning ObjectivesLearning Objectives
After studying this chapter, you should be able to:
Define leadership and be able to discuss its significance in organizations
Compare managing and leading and differentiate between them
Analyze a leader’s sources of power and issues in using power effectively
Describe and contrast the roles of the leader, followers, and the situation in the overall leadership process
After studying this chapter, you should be able to:
Define leadership and be able to discuss its significance in organizations
Compare managing and leading and differentiate between them
Analyze a leader’s sources of power and issues in using power effectively
Describe and contrast the roles of the leader, followers, and the situation in the overall leadership process
© 2008 Prentice-Hall Business Publishing 3
Learning ObjectivesLearning Objectives
Discuss the extent to which national cultures create differences in effective leadership behaviors from one country to another
Explain the conditions that can substitute for, or neutralize, effective leadership
Plan how to improve your own leadership capabilities
Discuss the extent to which national cultures create differences in effective leadership behaviors from one country to another
Explain the conditions that can substitute for, or neutralize, effective leadership
Plan how to improve your own leadership capabilities
© 2008 Prentice-Hall Business Publishing 4
What is Leadership?What is Leadership?
Organizational leadership
Social influence process
Attempts to influence other people in attaining some goal
Leadership behavior:
Can be shown by anyone
Is expected of most managers
Could be demonstrated more
Organizational leadership
Social influence process
Attempts to influence other people in attaining some goal
Leadership behavior:
Can be shown by anyone
Is expected of most managers
Could be demonstrated more
© 2008 Prentice-Hall Business Publishing 5
What is Leadership?What is Leadership?
Effective leadership
Influence that assists an organization to meet its goals and perform successfully
Effective leaders:
Enable people to accomplish more than if there had been no such leadership
Unlock other people’s potential
Effective leadership
Influence that assists an organization to meet its goals and perform successfully
Effective leaders:
Enable people to accomplish more than if there had been no such leadership
Unlock other people’s potential
© 2008 Prentice-Hall Business Publishing 6
Leading and Managing: The Same or Different?Leading and Managing: The Same or Different?
Leaders
Create vision for organizations and units
Promote major changes in goals and procedures
Set and communicate new directions
Inspire subordinates
Leaders
Create vision for organizations and units
Promote major changes in goals and procedures
Set and communicate new directions
Inspire subordinates
Managers
Deal with interpersonal conflict
Plan
Organize
Implement goals set by others (the leaders)
Managers
Deal with interpersonal conflict
Plan
Organize
Implement goals set by others (the leaders)
© 2008 Prentice-Hall Business Publishing 7
Leading and Managing: The Same or Different?Leading and Managing: The Same or Different?
Managing ought to involve most of the activities thought of as leading
Organizations need their managers to incorporate leadership roles into their behavior
Managing ought to involve most of the activities thought of as leading
Organizations need their managers to incorporate leadership roles into their behavior
Managers
Adapted from Exhibit 9.1
LeadersLeaders
and Managers
© 2008 Prentice-Hall Business Publishing 8
Leadership Across Different National CulturesLeadership Across Different National Cultures
Examples of leader attributes universally viewed as positive
Examples of leader attributes universally viewed as positive
++ Trustworthy+ Encouraging+ Honest+ Decisive+ Communicative+ Dependable
++ Trustworthy+ Encouraging+ Honest+ Decisive+ Communicative+ Dependable
Adapted from Exhibit 9.2
Examples of leader attributes universally viewed as negative
Examples of leader attributes universally viewed as negative
-- Noncooperative- Irritable- Dictatorial- Ruthless- Egocentric- Asocial
-- Noncooperative- Irritable- Dictatorial- Ruthless- Egocentric- Asocial
Examples of leader attributes viewed as positive or negative depending on the culture
Examples of leader attributes viewed as positive or negative depending on the culture
+/-+/- Ambitious+/- Individualistic+/- Cunning+/- Cautious+/- Class Conscious+/- Evasive
+/-+/- Ambitious+/- Individualistic+/- Cunning+/- Cautious+/- Class Conscious+/- Evasive
© 2008 Prentice-Hall Business Publishing 9
Leadership and PowerLeadership and Power
Power
The capacity or ability to influence
Power can:
Lead to greater capacity to influence
Be used to overcome resistance
Be abused and lead to undesirable consequences
Produce positive outcomes if used skillfully
Power
The capacity or ability to influence
Power can:
Lead to greater capacity to influence
Be used to overcome resistance
Be abused and lead to undesirable consequences
Produce positive outcomes if used skillfully
© 2008 Prentice-Hall Business Publishing 10
Types of PowerTypes of Power
Based on a manager's rank in an organizational structure and given to the manager by superiors
Based on a manager's rank in an organizational structure and given to the manager by superiors
Based on a person's individual characteristics; stay with the individual regardless of his or her position in the organizational structure
Based on a person's individual characteristics; stay with the individual regardless of his or her position in the organizational structure
PositionPower
PositionPower
PersonalPower
PersonalPower
© 2008 Prentice-Hall Business Publishing 11
Types of PowerTypes of Power
Legitimate—How much authority does the organization give to your position?Legitimate—How much authority does the organization give to your position?
Reward—Are you able to give others the rewards they want?Reward—Are you able to give others the rewards they want?
Coercive—Are you able to punish others or withhold rewards?Coercive—Are you able to punish others or withhold rewards?
Expert—Do you have knowledge that others need?Expert—Do you have knowledge that others need?
Referent—Do others respect you and want to be like you?Referent—Do others respect you and want to be like you?
PositionPower
PositionPower
PersonalPower
PersonalPower
Adapted from Exhibit 9.3
© 2008 Prentice-Hall Business Publishing 12
Four Key Issues in Using PowerFour Key Issues in Using Power
How much power should be used?
How can powerbe put to use?
Which types of power should be used?
Should powerbe shared?
Adapted from Exhibit 10.2: Four Key Issues in Using PowerAdapted from Exhibit 9.4
© 2008 Prentice-Hall Business Publishing 13
Types of Influence TacticsTypes of Influence Tactics
RationalPersuasionRationalPersuasion
Uses logical arguments and factual evidence to show a
proposal or request is feasible and relevant for attaining
important task objectives
Uses logical arguments and factual evidence to show a
proposal or request is feasible and relevant for attaining
important task objectives
ApprisingApprisingExplains how carrying out a request or supporting a
proposal will benefit the target personally or help
advance the target person’s career
Explains how carrying out a request or supporting a
proposal will benefit the target personally or help
advance the target person’s career
InspirationalAppealsInspirationalAppeals
Makes an appeal to values and ideals or seeks to
arouse the target person’s emotions to gain
commitment for a request or proposal
Makes an appeal to values and ideals or seeks to
arouse the target person’s emotions to gain
commitment for a request or proposal
ConsultationConsultationEncourages the target to suggest improvements in a
proposal or to help plan an activity or change for which
the target person’s support and assistance are desired
Encourages the target to suggest improvements in a
proposal or to help plan an activity or change for which
the target person’s support and assistance are desired
Adapted from Exhibit 9.5
© 2008 Prentice-Hall Business Publishing 14
Types of Influence Tactics (cont.)Types of Influence Tactics (cont.)
ExchangeExchangeOffers an incentive, suggests an exchange of favors, or
indicates willingness to reciprocate at a later time if the
target will do what the agent requests
Offers an incentive, suggests an exchange of favors, or
indicates willingness to reciprocate at a later time if the
target will do what the agent requests
CollaborationCollaborationOffers to provide relevant resources and assistance if
the target will carry out a request or approve a proposed
change
Offers to provide relevant resources and assistance if
the target will carry out a request or approve a proposed
change
PersonalAppealsPersonalAppeals
Asks the target to carry out a request or support a
proposal out of friendship, or asks for a personal favor
before saying what it is
Asks the target to carry out a request or support a
proposal out of friendship, or asks for a personal favor
before saying what it is
IngratiationIngratiationUses praise and flattery before or during an influence
attempt or expresses confidence in the target’s ability
to carry out a difficult request
Uses praise and flattery before or during an influence
attempt or expresses confidence in the target’s ability
to carry out a difficult request
Adapted from Exhibit 9.5
© 2008 Prentice-Hall Business Publishing 15
Types of Influence Tactics (cont.)Types of Influence Tactics (cont.)
LegitimatingTacticsLegitimatingTactics
Seeks to establish the legitimacy of a request or to
verify authority to make it by referring to rules, formal
policies, or official documents
Seeks to establish the legitimacy of a request or to
verify authority to make it by referring to rules, formal
policies, or official documents
PressurePressure Uses demands, threats, frequent checking, or persistent reminders to influence the target personUses demands, threats, frequent checking, or persistent reminders to influence the target person
CoalitionTacticsCoalitionTactics
Seeks the aid of others to persuade the target to do something or uses the support of others as a reason for the target to agree
Seeks the aid of others to persuade the target to do something or uses the support of others as a reason for the target to agree
Adapted from Exhibit 9.5
© 2008 Prentice-Hall Business Publishing 16
Locus of LeadershipLocus of Leadership
Three leadership variables:
The leader
The situation
The followers
Locus of leadership:
Where the three variables intersect
Three leadership variables:
The leader
The situation
The followers
Locus of leadership:
Where the three variables intersect
LeaderLeader
SituationSituationFollowersFollowers
Locus ofLeadership
Adapted from Exhibit 9.6
© 2008 Prentice-Hall Business Publishing 17
Leaders’ TraitsLeaders’ Traits
DriveAchievement, ambition,
energy, tenacity, initiative
DriveAchievement, ambition,
energy, tenacity, initiative
Emotional maturityEven tempered, calm under
stress, unself-centered, nondefensive
Emotional maturityEven tempered, calm under
stress, unself-centered, nondefensive
Self-confidenceSet high goals for self and others, optimistic about overcoming obstacles
(if taken to extreme, can lead to arrogance and sense of infallibility)
Self-confidenceSet high goals for self and others, optimistic about overcoming obstacles
(if taken to extreme, can lead to arrogance and sense of infallibility)
Motivation to LeadDesire to influence others, comfortable
using power
Motivation to LeadDesire to influence others, comfortable
using power
Honesty and IntegrityTrustworthy, open,
forthright
Honesty and IntegrityTrustworthy, open,
forthrightLeaderLeader
Adapted from Exhibit 9.7
© 2008 Prentice-Hall Business Publishing 18
Charismatic LeadershipCharismatic Leadership
Charismatic leadership
Is a strong form of referent power
Is based on individual inspirational qualities rather than formal power
Generates followers who identify with charismatic leaders because of these exceptional qualities
Is rare; very few people are considered truly “charismatic”
Charismatic leadership
Is a strong form of referent power
Is based on individual inspirational qualities rather than formal power
Generates followers who identify with charismatic leaders because of these exceptional qualities
Is rare; very few people are considered truly “charismatic”
© 2008 Prentice-Hall Business Publishing 19
Attributes of Charismatic LeadersAttributes of Charismatic Leaders
Adapted from Exhibit 11.10: Attributes of the Charismatic LeaderAdapted from Exhibit 9.8
© 2008 Prentice-Hall Business Publishing 20
Leaders’ SkillsLeaders’ Skills
TECHNICAL SKILLSSpecialized knowledgeTECHNICAL SKILLSSpecialized knowledge
INTERPERSONAL SKILLSSensitivity, persuasiveness, empathyINTERPERSONAL SKILLSSensitivity, persuasiveness, empathy
CONCEPTUAL SKILLSLogical reasoning, judgment, analytical abilities
CONCEPTUAL SKILLSLogical reasoning, judgment, analytical abilities
© 2008 Prentice-Hall Business Publishing 21
Leaders’ SkillsLeaders’ Skills
TECHNICAL SKILLSSpecialized knowledgeTECHNICAL SKILLSSpecialized knowledge
INTERPERSONAL SKILLSSensitivity, persuasiveness, empathyINTERPERSONAL SKILLSSensitivity, persuasiveness, empathy
CONCEPTUAL SKILLSLogical reasoning, judgment, analytical abilities
CONCEPTUAL SKILLSLogical reasoning, judgment, analytical abilities
EMOTIONAL INTELLIGENCESelf-awareness, self-regulation, motivation, empathy and social skill
EMOTIONAL INTELLIGENCESelf-awareness, self-regulation, motivation, empathy and social skill
SOCIAL INTELLIGENCEAbility to “read” other peopleSOCIAL INTELLIGENCEAbility to “read” other people
Adapted from Exhibit 9.9
© 2008 Prentice-Hall Business Publishing 22
Leaders’ BehaviorsLeaders’ Behaviors
Task Behaviors
Specifies roles and tasks
Schedules work
Sets performance standards
Develops procedures
Task Behaviors
Specifies roles and tasks
Schedules work
Sets performance standards
Develops procedures
People Behaviors
Is friendly
Is supportive
Shows trust and confidence in subordinates
Shows concern for subordinates’ welfare
Gives recognition to subordinates for accomplishments
People Behaviors
Is friendly
Is supportive
Shows trust and confidence in subordinates
Shows concern for subordinates’ welfare
Gives recognition to subordinates for accomplishments
Adapted from Exhibit 9.10
© 2008 Prentice-Hall Business Publishing 23
Approaches Based on Leaders’ BehaviorApproaches Based on Leaders’ Behavior
BLAKE & MOUTON: MANAGERIAL GRID
Best managers are bothtask- and people-oriented
BLAKE & MOUTON: MANAGERIAL GRID
Best managers are bothtask- and people-oriented
TRANSFORMATIONAL LEADERSHIP
Leaders who inspire followers to make major changes or to achieve
at very high levels
TRANSFORMATIONAL LEADERSHIP
Leaders who inspire followers to make major changes or to achieve
at very high levels
TRANSACTIONAL LEADERSHIP
Emphasizes the exchange of rewards for followers’ compliance
TRANSACTIONAL LEADERSHIP
Emphasizes the exchange of rewards for followers’ compliance
AUTHENTIC LEADERSHIP
Model self-awareness and regulation and motivate followers to act
more authentically too
AUTHENTIC LEADERSHIP
Model self-awareness and regulation and motivate followers to act
more authentically too
Leadership ApproachesLeadership Approaches
© 2008 Prentice-Hall Business Publishing 24
Managerial GridManagerial Grid
Focuses on two leadership behaviors: concern for people and concern for results
Leaders can be
- High in both
- Low in both
- In the middle on both
- High in one, low in the other
Focuses on two leadership behaviors: concern for people and concern for results
Leaders can be
- High in both
- Low in both
- In the middle on both
- High in one, low in the other Low High
Low
High
Concern for Results
Co
nce
rn f
or
Peo
ple
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
GoodLeaders
PoorLeaders
MediocreLeaders
© 2008 Prentice-Hall Business Publishing 25
Transformational LeadershipTransformational Leadership
Transformational leaders
Empower and coach followers
Motivate followers to:
- Ignore self-interest
- Work for the larger good of the organization
- Achieve significant accomplishments
- Make major changes
Transformational leaders
Empower and coach followers
Motivate followers to:
- Ignore self-interest
- Work for the larger good of the organization
- Achieve significant accomplishments
- Make major changes
© 2008 Prentice-Hall Business Publishing 26
Transactional LeadershipTransactional Leadership
Transactional leadership
Is more passive
Emphasizes exchange or rewards or benefits for compliance with leader’s requests
Appeals to followers’ self-interests to motivate their performance
Transactional leadership
Is more passive
Emphasizes exchange or rewards or benefits for compliance with leader’s requests
Appeals to followers’ self-interests to motivate their performance
© 2008 Prentice-Hall Business Publishing 27Adapted from Exhibit 11.11: Transformation versus Transactional Leadership
Transformational Leadership
Transformational Leadership
Transactional Leadership
Transactional Leadership
Leader gains subordinates’ compliance by:
Leader gains subordinates’ compliance by:
Appeals focus on:Appeals focus on:
Type of planned change:Type of planned change:
Transformational Versus Transactional LeadershipTransformational Versus Transactional Leadership
Inspiring, empowering, and
coaching followers
Inspiring, empowering, and
coaching followers
Exchange of rewards and
benefits
Exchange of rewards and
benefits
Organizational and “common good”
interests
Organizational and “common good”
interestsSelf-interestSelf-interest
Major organizational
change
Major organizational
changeRoutine changesRoutine changes
Adapted from Exhibit 9.11
© 2008 Prentice-Hall Business Publishing 28
Guidelines for Transformational LeadershipGuidelines for Transformational Leadership
Develop a clear and appealing vision
Develop a strategy for attaining the vision
Articulate and promote the vision
Act confident and optimistic
Express confidence in followers
Use early success in small steps to build confidence
Celebrate successes
Use dramatic, symbolic actions to emphasize key values
Lead by example
Develop a clear and appealing vision
Develop a strategy for attaining the vision
Articulate and promote the vision
Act confident and optimistic
Express confidence in followers
Use early success in small steps to build confidence
Celebrate successes
Use dramatic, symbolic actions to emphasize key values
Lead by example
Adapted from Exhibit 9.12
© 2008 Prentice-Hall Business Publishing 29
Followers’ BehaviorsFollowers’ Behaviors
Important points about followers:
They may be as informed as leaders
They may share power with leaders
Usually have lower formal authority, though power differences have decreased
They affect the leader’s style and success
Important points about followers:
They may be as informed as leaders
They may share power with leaders
Usually have lower formal authority, though power differences have decreased
They affect the leader’s style and success
© 2008 Prentice-Hall Business Publishing 30
Approaches Based on Followers’ BehaviorApproaches Based on Followers’ Behavior
HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP MODEL
Focuses followers’ “readiness” to engage in learning new tasks
HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP MODEL
Focuses followers’ “readiness” to engage in learning new tasks
LEADER-MEMBER EXCHANGE THEORY
Focuses on types of relationships between a leader and a follower
LEADER-MEMBER EXCHANGE THEORY
Focuses on types of relationships between a leader and a follower
Leadership ApproachesLeadership Approaches
© 2008 Prentice-Hall Business Publishing 31
Situational Leadership ModelSituational Leadership Model
Leadership behaviors depend on “readiness” of followers
- Ability in a specific task
- Motivation to undertake the new task
Leadership behaviors
- Supportiveness (people orientation)
- Directiveness (task orientation)
Leadership behaviors depend on “readiness” of followers
- Ability in a specific task
- Motivation to undertake the new task
Leadership behaviors
- Supportiveness (people orientation)
- Directiveness (task orientation)
© 2008 Prentice-Hall Business Publishing 32
Leader-Member Exchange TheoryLeader-Member Exchange Theory
Quality of the leader-member relationship can influence behavior of subordinates
Leader should build strong, mutually beneficial relationship
Relationship goes through stages:- Stranger- Acquaintance- Maturity
Quality of the leader-member relationship can influence behavior of subordinates
Leader should build strong, mutually beneficial relationship
Relationship goes through stages:- Stranger- Acquaintance- Maturity
© 2008 Prentice-Hall Business Publishing 33
Role-Implementation
High
AlmostUnlimited
Team
Leader-Member RelationshipsLeader-Member Relationships
Role-Making
Medium
Limited
Role-Finding
Low
None
Self
Relationship-building phase
Quality of leader-member exchange
Amounts ofreciprocal Influence
Focus of interest
Stranger
Relationship characteristicsRelationship
characteristicsRelationship
stageRelationship
stage
Maturity
Time
Acquaintance
Adapted from Exhibit 9.13
© 2008 Prentice-Hall Business Publishing 34
The SituationThe Situation
Situational variables affecting leadership are:
Tasks to be performed- If task changes, leadership style changes- Unstructured task done by experts supportive
leadership- Structured task done by inexperienced people
directive leadership
Organizational context- Immediate work group + larger organization- Organizational culture dictates leadership style
Situational variables affecting leadership are:
Tasks to be performed- If task changes, leadership style changes- Unstructured task done by experts supportive
leadership- Structured task done by inexperienced people
directive leadership
Organizational context- Immediate work group + larger organization- Organizational culture dictates leadership style
© 2008 Prentice-Hall Business Publishing 35
Approaches Based on SituationApproaches Based on Situation
FIEDLER: CONTINTENCYLEADERSHIP MODEL
Focuses on type of leader and the degree of favorability of the situation
FIEDLER: CONTINTENCYLEADERSHIP MODEL
Focuses on type of leader and the degree of favorability of the situation
HOUSE: PATH-GOAL THEORY
Use leadership approach based onboth subordinate skills and situation
HOUSE: PATH-GOAL THEORY
Use leadership approach based onboth subordinate skills and situation
Leadership ApproachesLeadership Approaches
© 2008 Prentice-Hall Business Publishing 36
Leadership Contingency TheoryLeadership Contingency Theory
Premise: Leadership effectiveness depends on 1) favorability of situation and 2) type of leaderPremise: Leadership effectiveness depends on 1) favorability of situation and 2) type of leader
FAVORABLE SITUATION
• Good subordinate relationships• Highly structured task• High amount of position power
UNFAVORABLE SITUATION
• Poor subordinate relationships• Unstructured task• Leader lacks position power
TASK-ORIENTED LEADERS
Do best when the situation is either:• Highly favorable, or• Highly unfavorable
PEOPLE-ORIENTED LEADERS
Do best when the situation is either:• Moderately favorable, or• Moderately unfavorable
© 2008 Prentice-Hall Business Publishing 37
Leader’s job is to increase subordinate satisfaction and effort
Assumes that:
- One leadership approach will work better in some task situations than others
- Leaders can modify their styles to suit the situation
Two basic leadership behaviors:
- Supportive
- Directive
Leader’s job is to increase subordinate satisfaction and effort
Assumes that:
- One leadership approach will work better in some task situations than others
- Leaders can modify their styles to suit the situation
Two basic leadership behaviors:
- Supportive
- Directive
Path-Goal TheoryPath-Goal Theory
© 2008 Prentice-Hall Business Publishing 38
The task is:Frustrating, boring, stressful,
structured, and routine
Subordinates are:Highly experienced and
competent
The task is:Interesting but ambiguous, nonstressful, unstructured,
varied
Subordinates are:inexperienced
Directive Leadership Style(Task oriented)
Supportive Leadership Style(Person oriented)
Goal(i.e., increased performance)
IF
AND
IF
AND
Path-Goal TheoryPath-Goal Theory
Adapted from Exhibit 9.14
© 2008 Prentice-Hall Business Publishing 39
Substitutes for LeadershipSubstitutes for Leadership
Adapted from Exhibit 5.2: Factors of Moral Intensity
Direct Feedbackfrom Task
Direct Feedbackfrom Task
Cohesive workgroup
Cohesive workgroup
Advisory orStaff SupportAdvisory or
Staff Support
IntrinsicallySatisfying Task
IntrinsicallySatisfying Task
Ability,Experience,
Training
Ability,Experience,
Training
ProfessionalOrientation
ProfessionalOrientation
Substitutesfor Leadership
Substitutesfor Leadership
Adapted from Exhibit 9.14