Chapter 11cgfggf

8/13/2019 Chapter 11cgfggf

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BUSINESS MANAGEMENT

CHAPTER 11

LEADERSHIPS AND DECISION MAKING


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What s


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What Is Leadership?

leadership is about influencing,

motivating, and enabling others to

contribute toward the effectiveness and

success of the organizations of which they

are members. Leaders also arrange the work environment

such as allocating resources and altering

communication patternsso that employees can

achieve organizational objectives more easily.


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SharedLeadershipThe view that leadership is broadly distributed, rather

than assigned to one person, such that people within

the team and organization lead each other.

Shared leadership flourishes in organizations where

the formal leaders are willing to delegate power andencourage employees to take initiative and risks

without fear of failure (i.e., a learning orientation

culture).


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LeadershipTheories


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Competencies of

Effective LeadersLeadership competencies Description

Personality The leaders higher levels of extroversion (outgoing,

talkative, sociable, and assertive) and conscientiousness

(careful, dependable, and self-disciplined).

Self-concept The leaders self-beliefs and positive self-evaluation about his

or her own leadership skills and ability to achieve objectives.

Drive The leaders inner motivation to pursue goals.

Integrity The leaders truthfulness and tendency to translate words

into deeds.

Leadership motivation The leaders need for socialized power to accomplish team

or organizational goals.

Knowledge of the business The leaders tacit and explicit knowledge about the companys

environment, enabling the leader to make more

intuitive decisions.

Cognitive and practical intelligence The leaders above-average cognitive ability to process

information (cognitive intelligence) and ability to solve

real-world problems by adapting to, shaping, or selecting

appropriate environments (practical intelligence).

Emotional intelligence The leaders ability to monitor his or her own and others

emotions, discriminate among them, and use the information

to guide his or her thoughts and actions.


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Behavioral Perspective of

Leadership

What behaviors make leaders effective?

Task- versus People-Oriented Leadership


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Task- versus People-Oriented

Leadership

Task-oriented leaders

assign employees to specific

tasks, clarify their work duties

and procedures, ensure that they

follow company rules, and pushthem to reach their performance

capacity.

They establish stretch goals and

challenge employees to push

beyond those high standards.

people-oriented leaders

includes behaviors such as

showing mutual trust and respect

for subordinates, demonstrating a

genuine concern for their needs,and having a desire to look out

for their welfare.

Leaders with a strong people-

oriented style listen to employee

suggestions, do personal favorsfor employees, support their

interests when required, and treat

employees as equals.


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Path-Goal Leadership

The study of how leader behaviors

influence employee perceptions of

expectancies (paths) between employee

effort and performance (goals).


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The four path-goal leadership

styles

Directive Supportive Participative

Achievement-

oriented


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Transformational Perspective of

Leadership

A leadership perspective that explains how leaders

change teams or organizations by creating,

communicating, and modeling a vision for the

organization or work unit and inspiring employees to

strive for that vision.

Transformational leaders such as Anne Sweeney, Herb

Kelleher(Southwest Airlines), A. G. Lafley (Procter &

Gamble), Carlos Ghosn (Renault/Nissan), and Richard

Branson (Virgin) dot the corporate landscape.

These leaders are agents of change. They create,

communicate, and model a shared vision for the team or

organization, and they inspire followers to strive for that

vision.


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Transformational Leadership

Transactional Leadership:

helping organizations achieve their current objectives more

efficiently, such as by linking job performance to valued rewards

and ensuring that employees have the resources needed to get the

job done. focus on leader behaviors that improve employee performance and

satisfaction. Transactional leadership is considered by some writers

as managing or doing things right because leaders concentrate

on improving employee performance and well-being.

In contrast, transformational leadership is about

leadingchanging the organizations strategies and culture

so that they have a better fit with the surrounding

environment.


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Charismatic Leadership

Charisma is a personal trait or relational quality

that provides referent power over followers,

whereas transformational leadership is a set

of behaviors that people use to lead the change

process.

Charismatic leaders might be transformational

leaders; indeed, their personal power through

charisma is a tool to change the behavior of

followers.

However, some research points out that

charismatic or heroic leaders easily build

commitment in followers but do not necessarily

change the organization.


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Elements of Transformational

LeadershipCreate a Strategic Vision

Transformational leaders establish a vision of the company's future

state that engages employees to achieve objectives they didn't think

possible.

Communicate the vision

the most important leadership quality is being able to build and share

their vision for the organization. leaders communicate meaning and elevate the importance of the

visionary goal to employees.

Model the vision

Transformational leaders not only talk about a vision; they enact it .

They walk the talk by stepping outside the executive suite and doing

things that symbolize the vision.

Build commitment to the vision

Transformational leaders build this commitment in several ways.

Their words, symbols, and stories build a contagious enthusiasm that

energizes people to adopt the vision as their own.

Leaders demonstrate a can do attitudeby enacting their vision and

staying on course. Their persistence and consistency reflect an image

of honesty, trust, and integrity.

Finally, leaders build commitment by involving employees in the

process of shaping the organizations vision.


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The leadership styles of women

and men.


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and men.

Women are more likely to describe their jobsas transformational, getting subordinates totransform their own self-interest into the interestof the group through concern for a broader goal.

Men are more likely to describe their jobs as

transactional, a series of transactions withsubordinates. They exchange rewards forservices rendered or punishment for inadequate

performance.


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and men.

Women tend to see their power as comingfrom personal character isticssuch as charisma,interpersonal skills, hard work, or personal

contacts.

Men tend to see their power as coming from

theirorganizational positionand formalauthority.


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and men.

Women tend to score higher in orientation

towards production (strong pursuit of

achievement, holding high expectations for selfand others) and the attainment of results.

Men tend to score higher on scales assessingan orientationtowards strategic planning and

organizational vision.


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and men.

Women tend to score higher on people-

oriented leadership skills.

Men tend to score higher on business-

oriented leadershipskills.


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Behavioral Aspects of Decision-

Making

Political Forces in Decision-Making

Coalition: An informal alliance of individuals or groups formed toachieve a common goal

Intuition An innate belief about something, often without conscious

consideration

Escalation of Commitment

Staying with a chosen course of action, even when it appears to have

been wrong

Risk Propensity

The extent to which a decision-maker is willing to gamble whenmaking a decision

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