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McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Chapter 7
Leadership
McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.
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THE NATURE OF LEADERSHIP
Do you have leadership qualities? Yes? No?
Can you influence people to perform task?
Do you support others to work enthusiastically toward achieving a goal?
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THE NATURE OF LEADERSHIP
Leadership
A process of influencing and supporting others to work enthusiastically toward achieving objectives.
Without a leader an organization would only be a set of confused people and machines
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THE NATURE OF LEADERSHIP
Warren Buffett
Sergey Brin & Larry Page
Jerry Yang and David Filo
Jeff Bezos
Bill Gates and Paul Allen
Steve Jobs & Steve Wozniak
Berkshire Hathaway
Yahoo
Amazon
Microsoft
Apple
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THE NATURE OF LEADERSHIP
Ultimate Test of Leadership
The degree to which a leader can identify, develop, channel and enrich the potential that is already in an organization and its people
- and then sustains it across both good and bad times.
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THE NATURE OF LEADERSHIP
WHAT IS YOUR
LEADERSHIP STYLE?
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THE NATURE OF LEADERSHIP
Difference between Management and Leadership
Can you be an effective manager but bad in leadership?
Can you be an effective leader but bad in managing?
Management - is the function that coordinates the efforts of people to accomplish goals and objectives using available
resources efficiently and effectively.
Leadership - a process of influencing and supporting others to work enthusiastically toward achieving objectives.
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THE NATURE OF LEADERSHIP
Traits of Effective Leaders
Traits are your physical, intellectual, and personality attributes.
•Separates the leaders and non-leaders
•Successful and unsuccessful leaders
Physical – height, body size, shape, personal attractiveness
Intellectual – Intelligent, smart, cognitive
Personality – ambitious, aggressive, determine,
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THE NATURE OF LEADERSHIP
Positive Leadership Traits
Primary Positive Traits
Honesty & Integrity – Ethics, authenticity
Personal Drive & Energy – Determination, will power,
Desire to Lead – Motivation to influence others
Self-Confidence – Optimism and belief in self efficacy
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THE NATURE OF LEADERSHIP
Positive Leadership Traits
Secondary Positive Traits
Cognitive (analytical) abilities – conscious, intellectual activity, thinking, reasoning, remembering, understanding, learning
These cognitive abilities are:
•Charisma
•Flexibility
•Adoptive ness
•Warmth
•Creativity
•Originality
•Knowledge of Business
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THE NATURE OF LEADERSHIP
Traits
Do not necessarily guarantee successful leadership
-Viewed as personal competencies or resources that may or may not be developed and used
-Some have capabilities to be effective leaders, but choose not to demonstrate the traits they have
-Others may have necessary traits and the desire to use them, but the opportunity to do so never arises.
Do you like to challenge these statements?
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THE NATURE OF LEADERSHIP
Negative Traits of Some Leaders
Narcissism = are the Alpha Dogs in the Corporate World
If not controlled, becomes self-deceptive “Bilib sa sarili”
Worst scenario, produce leaders who are dangerously over confident, power-seeking persons who are always desperate to feed their egos.
Characteristics:
Ruthless, intimidate others (bullies), wants personal control
Result: Tension, stress, volatile
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THE NATURE OF LEADERSHIP
Leadership Behavior
Successful leadership depends more on appropriate behavior, skills and actions – less on personal traits
(Physical, intellectual, personality)
But traits releases skills, actions, appropriate behavior
These are the expression of your traits.
They can be learned and changed.
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THE NATURE OF LEADERSHIP
Three Types of Skills:
Technical Skills
Ex. Skills learned by accountants, engineers, lawyers, etc. Sometimes as they become leaders have less use of technical skills and uses their subordinates instead.
Person’s knowledge of, and ability in, any type of process or technique.
It’s the distinguishing feature of job performance at the operating and professional level (person’s OS)
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THE NATURE OF LEADERSHIP
Three Types of Skills:
Human Skills
Ex. Can easily come up to people, gives handshakes, smiles, expresses appreciation, enthusiasm, warmth, listen attentively, solicit inputs, develop teamwork
Ability to work effectively with people and to build teamwork.
Behaviors are: Energize people, gives feedbacks, coaches, care-givers, empathize, sensitive, show compassion, & support others who need it.
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THE NATURE OF LEADERSHIP
Three Types of Skills:
Conceptual Skills
Ex. Managers who can see the interrelationships between its divisions, and to understand how the firm fits into and affects its overall environment.
Ability to think in terms of models, framework, and broad relationships such as long-range plans.
Deals with ideas, and can integrate it ideas into processes.
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THE NATURE OF LEADERSHIP
Leadership is Situational
Key: Recognize different situations and adapt to them on a conscious basis.
Action A maybe best today, then Action B might be better depending on a situation.
Ex. Aggressive and constant interaction will not guarantee successful result – at times you have to pull back to the background and keep the pressure off the group.
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THE NATURE OF LEADERSHIP
Fellowship in Leadership
Leaders are also Followers. True or not?
They may also report to someone else, or at least to some degree.
Being an effective follower, as a leader (dynamic subordinancy) is a requirement for good leadership.
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THE NATURE OF LEADERSHIP
Fellowship in Leadership
Positive Fellowship Behaviors includes:
•Being loyal and supportive, a team player
•Actively engage in pursuing dialogues and generating suggestions
•Constructively confronts the leader’s ideas, ethical values, actions
•Anticipate potential problems and prevents them
Negative Fellowship Behaviors Includes:
•Competition (opposing the leader to be in the limelight)
•Uncritical (“yes” man)
•Rebellion (opposes good leader, or support bad ones)
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BEHAVIORAL APPROACHES TO LEADERSHIP STYLE
Leadership Style
Positive Leadership – Supportive, rewards, coaches
Negative Leadership – Threatens, harshness, intimidates, penalize, use fear
Autocratic Leadership – Centralize power and decision makingand does not allow people to think for themselves
Consultative Leadership – Solicits employee’s opinions and inputprior making a decision
Participative Leadership – Decentralize authority, decision are not done on undertakings by the leader only but use the inputs from followers
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BEHAVIORAL APPROACHES TO LEADERSHIP STYLE
Leaders Use of Consideration and Structure
Consideration Leadership or Employee Orientation – concern about the human needs of their employees
- build teamwork, provide psychological support, help personal problems of employees
Structural leadership or Task Orientation – Get result by keeping people constantly busy
- Closely monitoring employee actions, urging them to produce at ever higher levels, ignores personal issues/emotions of employees
Best when combined together in one persons
Relate to Gender: Women tend to be more consideration Leaders
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BEHAVIORAL APPROACHES TO LEADERSHIP STYLE
Figure 7-3Blake and Mouton’s
Managerial Grid
Con
cern
for
peo
ple
Concern for production
1,9 Thoughtful attention toneeds of people for satisfyingrelationships leads to acomfortable, friendly organizationatmosphere and work tempo.
9,9 Work accomplishment is from committed people. Interdependence through a “common stake” in organization purpose leads torelationships of trust and respect.
5,5 Adequate organization performanceis possible through balancing the necessityto get out work with maintaining morale ofpeople at a satisfactory level.
1,1 Exertion of minimumeffort to get work done isappropriate to sustainorganization membership.
9,1 Efficiency in operations resultsfrom arranging conditions of work in such a way that human elementsinterfere to a minimum degree.
A tool in identifying
a manager’s
own leadership
style
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Contingency or Exception Approaches Models
Fiedler’s Contingency Model Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker (LPC) Scale.
First, you determine the "situational favorableness" of your particular situation. This depends on three distinct variables that relate to the followers, the task, and the organization.
•Leader-Member Relations – This is the level of trust and confidence that your team has in you. A leader who is more trusted and has more influence with the group is in a more favorable situation than a leader who is not trusted.
•Task Structure – This refers to the type of task you're doing: clear and structured, or vague and unstructured. Unstructured tasks, or tasks where the team and leader have little knowledge of how to achieve them, are viewed unfavorably.
•Leader's Position Power – This is the amount of power you have to direct the group, and provide reward or punishment. The more power you have, the more favorable your situation. Fiedler identifies power as being either strong or weak.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Fiedler’s Contingency Model
The scale asks you to think about the person who you've least enjoyed working with.
You then rate how you feel about this person for each factor, and add up your scores. If your total score is high, you're likely to be a relationship-orientated leader. If your total score is low, you're more likely to be task-orientated leader.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Fiedler’s Contingency Model
The model says that task-oriented leaders usually view their LPCs more negatively, resulting in a lower score. Fiedler called these low LPC-leaders. He said that low LPCs are very effective at completing tasks. They're quick to organize a group to get tasks and projects done. Relationship-building is therefore considered a low priority.
However, relationship-oriented leaders usually view their LPCs more positively, giving them a higher score. These are high-LPC leaders. High LPCs focus more on personal connections, and they're good at avoiding and managing conflict. They're better able to make complex decisions.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Fiedler’s Contingency Model
Figure 2 shows a breakdown of all of the factors we've covered: Leader-
Member Relations, Task Structure, and Leader's Position Power. The final
column identifies the type of leader that Fiedler believed would be most
effective in each situation.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Fiedler’s Contingency Model
For instance, imagine that you've just started working at a new company, replacing a much-loved leader who recently retired. You're leading a team who views you with distrust (so your Leader-Member Relations are poor). The task you're all doing together is well defined (structured), and your position of power is high because you're the boss, and you're able to offer reward or punishment to the group. The most effective leader in this situation would be high LPC – that is, a leader who can focus on building relationships first.
Or, imagine that you're leading a team who likes and respects you (so your Leader-Member relations are good). The project you're working on together is highly creative (unstructured) and your position of power is high since, again, you're in a management position of strength. In this situation a task-focused leadership style would be most effective.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Hersey & Blanchards Situational Leadership Model
You've just finished training the newest member of your team.
Now that he's ready to start working, you give him the data he needs to enter into the company's database, and you hurry off to a meeting.
When you return later that afternoon, you find that he hasn't done anything. He didn't know what to do, and he didn't have the confidence to ask for help. As a result, hours have been lost, and you have to rush to enter the data on time. Although you may want to blame the worker, the truth is that you're as much to blame as he is.
How can you avoid situations like this?
Management experts Paul Hersey and Ken Blanchard argue that these things happen because leaders don't match their style of leadership to the maturity of the people they're leading. When style and maturity aren't matched, failure is the result.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Hersey & Blanchards Situational Leadership Model
The theory states that instead of using just one style, successful leaders should change their leadership styles based on the maturity of the people they're leading and the details of the task. Using this theory, leaders should be able to place more or less emphasis on the task, and more or less emphasis on the relationships with the people they're leading, depending on what's needed to get the job done successfully.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Hersey & Blanchards Situational Leadership Model
According to Hersey and Blanchard, there are four main leadership styles:
•Telling (S1) – Leaders tell their people what to do and how to do it.
•Selling (S2) – Leaders provide information and direction, but there's more communication with followers. Leaders "sell" their message to get people on board.
•Participating (S3) – Leaders focus more on the relationship and less on direction. The leader works with the team, and shares decision-making responsibilities.
•Delegating (S4) – Leaders pass most of the responsibility onto the follower or group. The leaders still monitor progress, but they're less involved in decisions.
As you can see, styles S1 and S2 are focused on getting the task done. Styles S3 and S4 are more concerned with developing team members' abilities to work independently.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Figure 7-5 Situational leadership recommendations for leadership style to be used with each development level
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership ModelImagine that your boss has just assigned a major project to your new team.
There are some very talented people within the team, but you've worked with them in the past, and it wasn't a pleasant experience...
You've always felt that the best way to manage a fast-paced, expert team is to set objectives, and then let team members work out how they'll deliver for themselves.
You don't want to interfere with what they're doing, so you rarely have meetings with individuals or with the group.
The problem is that the team hasn't responded well to this approach. So what else should you do? Would daily meetings waste your people's time? And would they be annoyed if you involved yourself more in decision-making, or gave them more guidance on the project?
When thinking about the best way to lead a team, we have to consider several different factors, and it's easy choose the wrong approach. When this happens, morale, effectiveness, and productivity can suffer.
Path-Goal Theory helps you identify an effective approach to leadership, based on what your people want and your current situation.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model
The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy.
In particular, leaders:
•Clarify the path so subordinates know which way to go.
•Remove roadblocks that are stopping them going there.
•Increasing the rewards along the route.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model
Leaders need to provide a balance of bath Task and Psychological support for their employees:
•Task Support – When leaders help assemble the resource budgets, power, and other elements that are essential to get the job done.
•Psychological Support – Leaders must stimulate people to want to do the job and attend to their emotional needs.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model
Style to use to direct people:
•Directive Leadership - This includes giving them schedules of specific work to be done at specific times. Rewards may also be increased as needed and role ambiguity decreased (by telling them what they should be doing).
•Supportive Leadership – This includes increasing the follower's self-esteem and making the job more interesting. This approach is best when the work is stressful, boring or hazardous.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model
Style to use to direct people:
•Achievement Oriented LeadershipAchievement Oriented Leadership - Setting challenging goals, both in work and in self-improvement (and often together). High standards are demonstrated and expected. The leader shows faith in the capabilities of the follower to succeed. This approach is best when the task is complex.
•Participative Leadership - This approach is best when the followers are expert and their advice is both needed and they expect to be able to give it.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model –
Leaders must assess three significant variables in each employees:
•Locus of Control
•Willingness to accept the influence of other
•Self-perceived task ability
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model –
As the environment around you changes, you can either attribute success and failure to things you have control over, or to forces outside your influence. Which orientation you choose has a bearing on your long-term success.
This orientation is known as your "locus of control." Its study dates back to the 1960s, with Julian Rotter's investigation into how people's behaviors and attitudes affected the outcomes of their lives.
Locus of control describes the degree to which individuals perceive that outcomes result from their own behaviors, or from forces that are external to themselves. This produces a continuum (see figure 1) with external control at one end and internal control at the other.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model – Contigency Factors
People who develop an internal locus of control believe that they are responsible for their own success. Those with an external locus of control believe that external forces, like luck, determine their outcomes.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Path-Goal Leadership Model –
Willingness to accept the influence of others – If this variable is high, a directive approach will be mores successful, it it is low, a participative style is more appropriate
Self-perceived Task Ability – Employees who have high confidence in their potential will react most favorably to a supportive leader. While those lacking in perception of their own task ability will more likely embrace an achievement-oriented leader
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Vroom Decision-Making Model – Provides useful framework for identifying the best leadership style to adopt for the situation you are inUnderstanding the Model
When you sit down to make a decision, your style, and the degree of participation you need to get from your team, are affected by three main factors:
•Decision Quality – how important is it to come up with the "right" solution? The higher the quality of the decision needed, the more you should involve other people in the decision.
•Subordinate Commitment – how important is it that your team and others buy into the decision? When teammates need to embrace the decision you should increase the participation levels.
•Time Constraints – How much time do you have to make the decision? The more time you have, the more you have the luxury of including others, and of using the decision as an opportunity for teambuilding.
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CONTINGENCY APPROACHES TO LEADERSHIP STYLE
Specific Leadership Styles
Vroom distinguishes three styles of leadership, and five different processes of decision-making that you can consider using
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EMERGING APPROACHES TO LEADERSHIP
Emerging Approach to Leadership – Special additional perspective of new ways of looking at leadership
Substitutes
Are variables that make leadership unnecessary for subordinates and reduce the extent to which subordinates rely on their leader
Enhancers
Are variables that serve to strengthen leader influence on subordinate outcomes
Neutralizers
Are variables which serve to weaken, or block leader influence on subordinate outcomes
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EMERGING APPROACHES TO LEADERSHIP
Emerging Approach to Leadership – Special additional perspective of new ways of looking at leadership
Coaching
A process that enables learning and development to occur and thus performance to improve.
To be a successful a Coach requires a knowledge and understanding of process as well as the variety of styles, skills and techniques that are appropriate to the context in which the coaching takes place
It provides positive support, feedback and advice to an individual or group basis to improve their personal effectiveness in the business setting.
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EMERGING APPROACHES TO LEADERSHIP
Emerging Approach to Leadership – Special additional perspective of new ways of looking at leadership
Charismatic Leadership
Emphasizes the ability of a leader to communicate new visions of an organization to its followers and to raise follower awareness of the importance and core value of goals, often getting people to exceed their own interests.
Characteristics:
Charismatic Leaders are dominant, able to express their vision, are exceptionally self-confident, have a high need for power, and have a strong conviction in the moral “righteousness” of their beliefs.
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EMERGING APPROACHES TO LEADERSHIP
Emerging Approach to Leadership – Special additional perspective of new ways of looking at leadership
Transformational Leadership
Transformational leaders are those who transform their followers into becoming leaders themselves.
They create valuable and positive change in the followers. A transformational leader focuses on "transforming" others to help each other, to look out for each other, to be encouraging and harmonious, and to look out for the organization as a whole.
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Questions
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Reference Sources:
http://www.mindtools.com/pages/article/newTED_91.htm
http://en.wikipedia.org/wiki/Path%E2%80%93goal_theory
http://changingminds.org/disciplines/leadership/styles/path_goal_leadership.htm
http://www.mindtools.com/pages/article/fiedler.htm
http://www.mindtools.com/pages/article/newLDR_73.htm
http://www.mindtools.com/pages/article/newCDV_90.htm
http://en.wikipedia.org/wiki/Substitutes_for_Leadership_Theory