MANAGEMENT Chapter 17 “LEADERSHIP” Thieu Thi Anh Tuyet Marvella Mi Hao Stephanie Will Novita...

MANAGEMENTChapter 17

“LEADERSHIP”

Stephanie AndrianiThieu Thi Anh Tuyet

Marvella

Mi Hao

Stephanie Will

Novita Elisa

L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this

chapter.Who are Leaders and What is Leadership?• Define leaders and leadership• Explain why managers should be leader

Early Leadership Theories• Discuss what research has shown about leadership traits.• Contrast the findings of the four behavioral leadership theories.• Explain the dual nature of a leader’s behavior.

Contingency Theories of Leadership• Explain how Fiedler’s theory of leadership is a contingency model.• Contrast situational leadership and the leader participation model.• Discuss how path-goal theory explains leadership.

L E A R N I N G O U T L I N E (Cont’d) Follow this Learning Outline as you read and study this chapter.

Cutting Edge Approaches to Leadership• Differentiate between transactional and transformational leaders.• Describe charismatic and visionary leadership.

Leadership Issues in the Twenty-First Century• Tell the five sources of leader’s power.• Discuss the issues today’s leaders face.• Explain why leadership is sometimes irrelevant.

Who are Leaders and What is Leadership?

Leaders: Someone who can influence others and who has managerial authority.

Leadership: the process of influencing a group to achieve goals.

Leader is not born. Leader is learned!

EARLY

THEORY

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Early Leadership Theories

Trait Theories (1920s–1930s)Research in the 1920s and 1930s, focused on leader traits with the intent to isolate one or more traits that leaders possessed, but that nonleaders did not.

Seven traits associated with effective leadership: Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion.

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Exhibit 17-1Seven Traits Associated with Leadership

• Drive:leader exhibit a high effort level.• Desire to lead: Leaders have a strong desire to influence and

lead others.• Honesty and integrity• Self-confidence: Followers look to leaders for an absence of

self doubt.• Intelligence: Large information, to create visions, solve

problems.• Job-relevant knowledge• Extraversion: Leaders are energetic, lively people.

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Early Leadership Theories (Cont’d)

Thieu thi anh tuyet

Behavioral TheoryUniversity of Iowa Studies (Kurt Lewin)

– Identified three leadership styles:• Autocratic style: centralized authority, low

participation• Democratic style: involvement, high

participation, feedback• Laissez-faire style: hands-off management

– Research findings: mixed results• No specific style was consistently better for

producing better performance• Employees were more satisfied under a

democratic leader than an autocratic leader

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Early Leadership Theories (Cont’d)Behavioral Theory (Cont’d)

Ohio State Studies– Identified two dimensions of leader behaviour

• Initiating structure: the role of the leader in defining his or her role and the roles of group members

• Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings

– Research findings: mixed results• High-high leaders generally, but not always, achieved high

group task performance and satisfaction• Evidence indicated that situational factors appeared to

strongly influence leadership effectiveness

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Early Leadership Theories (Cont’d)

Management

Behavioral Theory (Cont’d)University of Michigan Studies

– Identified two dimensions of leader behaviour

• Employee oriented: emphasizing personal relationships

• Production oriented: emphasizing task accomplishment

– Research findings:• Leaders who are employee oriented are

strongly associated with high group productivity and high job satisfaction

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Early Leadership Theories (Cont’d)

Management

Behavioral Theory (Cont’d)Managerial Grid

– Appraises leadership styles using two dimensions:• Concern for people• Concern for production

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Exhibit 17.2 The Managerial Grid

Management

Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.

Contingency Theories of Leadership

Contingency Theories

The Fiedler Model

Hersey and Blanchard’s Situational Leadership

Theory (SLT)

Leader Participation Model

Path-Goal Model

Contingency Theories (Cont’d)The Fiedler Model

The effective group performance depends upon the proper match between the leader’s style interacting with the followers.To define leadership styles and different types of situations and then to identify the appropriate combinations of style and situation.Use The Least-Preferred Co-worker (LPC) Questionnaire

A questionnaire that measured whether aleader as task-oriented or relationship-oriented.

Contingency Theories (Cont’d)

The Fiedler Model (Cont’d)Three Contigency Dimensions

– Leader-member relations• rated as either good or poor.

– Task structure • rated as either high or low.

– Position power• rated as either strong or weak.

Exhibit 17.3 - Fiedler Model

Hersey and Blanchard’s SLTA leadership contingency theory that focuses on the follower’s readiness. Four Leadership Styles

– Telling (high task-low relationship)

– Selling (high task-high relationship)

– Participating (low task-high relationship)

– Delegating (low task-low relationship)

Contingency Theories (Cont’d)

Contingency Theories (Cont’d)

Hersey and Blanchard’s SLT (Cont’d)

Four Stages of Follower Readiness

– R1: unable and unwilling.

– R2: unable but willing.

– R3: able but unwilling.

– R4: able and willing.

Exhibit 17.4 - Hersey and Blanchard’s SLT Model

Contingency Theories (Cont’d)Leader Participant Model

A leadership contingency model that related leadership behavior and participation in decision making.Developed by Victor Vroom and Phillip YettonLeadership Style in Vroom Leader Participant Model

– Decide: decision maker.– Consult individually: ask suggestions from group members

individually.– Consult group: ask suggestions from group members in a

meeting.– Facilitate: Facilitator, defines problems and boundaries.– Delegate: Group makes the decision within prescribed limits.

Contingency Theories (Cont’d)Path Goal Model

Leader must assist the followers in attaining their goals and to provide the direction needed to ensure that their goals are compatible with the objectives.

House’s Leadership Behaviors:– Directives Leader

– Supportive Leader

– Participated Leader

– Achievement-oriented Leader

Exhibit 17.5 – Path Goal Model

Contemporary Views on Leadership

Transformational-Transactional LeadershipWhat are transactional leaders? • Leader who guide and motivate their

followers in the direction of set goals by clarifying role and task requirement.

What is a transformational leader? Leaders who inspires followers to

transcend their own self-interests for the good of the organization, and who is capable of having an important effect on his followers.

Distinguish transactional and transformational leadership. Transformational leadership is built on top

of transactional leadership.

Charismatic-Visionary Leadership• What is charismatic-leadership?• The skills do charismatic leader’s exhibit?

– Enthusiastic– Self Confidence– Action influence people to behave in certain ways

• What is visionary leadership?• What skills do visionary leader’s exhibit?

– Ability to explain the vision to others. – Ability to express the vision not just verbally but

through behavior. – Ability to extend to apply the vision to different

leadership contexts.

Team LeadershipWhat is team leadership?How to become an effective team leader?

Have the patience to share informationBeing able to trust other to give up authorityUnderstanding when to interveneHave mastered the difficulties balancing act of knowing when to leave and involve their team

Some priorities entail four specific leadership rolesLiaisons with external constituencies Troubleshooters Conflict managersCoaches

LEADERSHIP IN 21ST CENTURY

LEADERSHIP ISSUE IN 21ST CENTURY

Managing Power– Legitimate power

• The power a leader has as a result of his or her position.

– Coercive power• The power a leader has to punish or

control.– Reward power

• The power to give positive benefits or rewards.

– Expert power• The influence a leader can exert as a result of

his or her expertise, skills, or knowledge.

– Referent power• The power of a leader that arise because of a

person’s desirable resources or admired personal traits.

LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)

Developing Credibility and Trust– Credibility

• The assessment of a leader’s honesty, competence, and ability to inspire by his or her followers

– Trust• The belief of followers and others in the

integrity, character, and ability of a leader.• Dimensions of trust: integrity, competence,

consistency, loyalty, and openness.• Trust is related to increases in job

performance, organizational citizenship behaviors, job satisfaction, and organization commitment.

Exhibit 17-6 Suggestion for Building Trust

Practice openness.Be fair.

Speak your feelings.Tell the truth.

Show consistency.Fulfill your promises.

Maintain confidences.Demonstrate competence.

LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)

Providing Ethical Leadership– Ethics are part of leadership when

leaders attempt to:• Foster moral virtue through changes in

attitudes and behaviors.• Use their charisma in socially

constructive ways.• Promote ethical behavior by exhibiting

their personal traits of honesty and integrity.

– Moral leadership:• Involves addressing the means that a

leader uses to achieve goals as well as the moral content of those goals.

LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)

Providing Online Leadership• Focusing on managing virtual teams

using the development of technology.

• There are also challenges in providing online leadership : communication, performance management and trust.

–Challenges in Providing Online Leadership• Communication

– leader may need to learn new communication skills because the communication by using technology is different from using face to face communication

• Managing Performance– It can be done by defining, facilitating and encouraging it.– Define : direct the employees– Facilitate : reducing or eliminating obstacles to successful

performance and providing adequate resources to get the job done

– Encouraging : providing sufficient rewards that virtual employees really value

–Challenges in Providing Online Leadership

• Trust issue– Whether the system is being used to monitor and evaluate

employees– It is more important to create a culture where trust

among all participants is expected and required– The five dimensions of trust is integrity, competence,

consistency, loyalty and openness

LEADERSHIP ISSUE IN 21ST CENTURY (Cont’d)

Empowerment– Involves increasing the decision-

making discretion of workers such that teams can make key operating decisions in develop budgets, scheduling workloads, controlling inventories, and solving quality problems.

– Why empower employees?• Quicker responses problems and faster

decisions.

• Address the problem of increased spans of control in relieving managers to work on other problems.

“AN EMPOWERED ORGANIZATION IS ONE IN WHICH INDIVIDUALS HAVE THE KNOWLEDGE, SKILL, DESIRE, AND OPPORTUNITY TO PERSONALLY SUCCEED IN A WAY THAT LEADS TO COLLECTIVE ORGANIZATIONAL SUCCESS.”

Stephen R. Covey, Principle-centered Leadership

LEADERSHIP ISSUES IN 21st CENTURY (con’t)

Cross-Cultural Leadership• Leadership style based on national culture• The universal appeal of these transformational

leader characteristics is due to pressure toward common technologies and management practices as a result of global competitiveness and multinational influences

LEADERSHIP ISSUES IN 21st CENTURY (con’t)

• Gender Differences and Leadership

“Do males and females lead differently? ” accurately

characterized as a purely academic issue interesting but

not relevant.

A number of studies focusing on gender and leadership

style have been conducted in recent years.

LEADERSHIP ISSUES IN 21st CENTURY (con’t)

• Gender Differences in Leadership Styles– Women tend to adopt a more democratic or participative

style and a less autocratic or directive style than men do– Women are more like encourage participation, share

power ad information and attempt to enhance followers self worth

– Men are more likely to use a directive command and control styles

– Men rely on the formal authority of their position for their influence base

– Men use transactional leadership, handing

out rewards for good work and punishment

for bad

Exhibit 17-11 Where Female Managers Do Better: A Scorecard

Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75.

Noneof the five studies set out to find gender differences. They stumbled on them while

compiling and analyzing performance evaluations.

Skill (Each check mark denotes which group

scored higher on the respective studies)

* In one study, women’s and men’s scores in these categories were statistically even.

MEN WOMEN

Motivating Others

Fostering Communication

Producing High-Quality Work

Strategic Planning

Listening to Others

Analyzing Issues

*

*

*

Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, Personnel

Decisions International Inc., Advanced Teamware Inc.

LEADERSHIP ISSUES IN 21st CENTURY (con’t)

• The Demise of Celebrity Leadership

Business leader seem to be losing their luster.

Demise have two factors :

• That obviously has contributed to this shift of opinion

is the publicity from ongoing ethical ad financial

scandals at both for profit and nonprofit organizations

around the world.

• The controversy surrounding executive pay.

Example of a CEO

Mr. Sudhamek Agoeng Wospodo Soejoto, CEO of Garuda Food Company

Some suggestions CEO need to back to the basics of what it means to be a Leader

• Give people a reason to come to work.• Be loyal to the organization’s people• Spend time with people who do the real

work for the organization.• Be more open and more candid about

what business practices are acceptable and proper and how the unacceptable ones should be fixed.

LEADERSHIP ISSUES IN 21st CENTURY (con’t)

• Substitutes for Leadership Some situations, any behaviors a leader exhibits are

irrelevant.

Becoming a Manager

As you interact with various organizations, note the different styles used by the leaders in those organizations.

Thinks of people that you would consider effective leaders and try to determine why they’re effective.

If you have the opportunity, take the leadership development course.

Practice building trust in relationship that you have with others.

Read the books on great leaders (not just business leaders) and on leadership development topics

Terms to Know• Leader• Leadership• Traits Theory• Behavioral Theory• Managerial Grid • Fiedler Model• LPC Questionnaire• SLT• Leader Participant

Model• Path-Goal Model• Transformational

leadership• Transactional

leadership• Visionary leader

• Charismatic leadership• Team leadership• Legitimate Power• Coercive Power• Reward Power• Expert Power• Referent Power• Credibility• Trust• Ethical leadership• Moral leadership• Online Leadership• Abbreviation• Emoticons• Jargon

• Gender Differences and Leadership

• The Demise of Celebrity Leadership

• Substitutes for a Leadership

Starring

TeacherClass Captain

Speakers

Class

T. ManivasugenHafid PradiptaThieu Thi Anh TuyetMarvellaMi HaoStephanie AndrianiStephanie WillNovita ElisaManagement Class 1