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Strategic Business Program

Business Leadership and Conflict Management

Class 1

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Leadership

The ability to influence a group toward the achievement of goals

Management

Use of authority inherent in designated formal rank to obtain compliance from organizational members

Leadership

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Distinguishing Leadership from Management

Management1. Engages in day-to-day caretaker

activities: Maintains and allocates resources

2. Supervisory behaviour: Acts to make others maintain standard job behaviour

3. Administers subsystems within organizations

4. Asks how and when to engage in standard practice

5. Acts within established culture of the organization

6. Uses transactional influence: Induces compliance in manifest behaviour using rewards, sanctions, and formal authority

7. Relies on control strategies to get things done by subordinates

8. Status quo supporter and stabilizer

Leadership1. Formulates long-term objectives for

reforming the system: Plans strategy and tactics

2. Leading behaviour: Acts to bring about change in others congruent with long-term objectives

3. Innovates for the entire organization

4. Asks what and why to change standard practice

5. Creates vision and meaning for the organization

6. Uses transformational influence: Induces change in values, attitudes, and behaviour using personal examples and expertise

7. Uses empowering strategies to make followers internalize values

8. Status quo challenger and change creator

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Leadership as Supervision

Three general questions: Is there a particular set of traits that all

leaders have, making them different from non-leaders?

Are there particular behaviors that make for better leaders?

How much impact does the situation have on leaders?

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Trait Theories

Traits are characteristics of the person: Physical characteristics Abilities Personality traits

Traits consistently associated with leadership: Ambition and energy The desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge

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Myers-Briggs Model Personality Types

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What CEOs Identify as Key Leadership Traits

Quality

Communication skills

Ability to motivate people

Honesty

Ability to listen

Team-building expertise

Analytical skills

Aggressiveness in business

CEOs Rating It Most Important (%)

52

47

34

25

24

19

10

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Behavioral Theories of Leadership

Propose that specific behaviors differentiate leaders from non-leaders

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Research Findings for Behavioral Theories When subordinates experience a lot of pressure because

of deadlines or unclear tasks, leaders who are people oriented will increase employee satisfaction and performance.

When the task is interesting or satisfying, there is less need for leaders to be people oriented.

When it’s clear how to perform the task and what the goals are, leaders who are people oriented will increase employee satisfaction, while those who are task oriented will increase dissatisfaction.

When people don’t know what to do, or individuals don’t have the knowledge or skills to do the job, it’s more important for leaders to be production oriented than people oriented.

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Contingency or Situational Leadership Theories

Fiedler Contingency ModelHersey and Blanchard’s Situational

TheoryPath-Goal TheorySubstitutes for Leadership

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Fiedler Contingency Model

Effective group performance depends upon the proper match between the leader’s style and the degree to which the situation gives control to the leader.

Least preferred co-worker (LPC) questionnaire determines whether individuals were primarily interested in: good personal relations with co-workers, and thus

relationship oriented, or productivity, and thus task oriented.

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Hersey and Blanchard’s Situational Theory Follower: unable and unwilling Follower: unable but willing Follower: able but unwilling Follower: both able and willing

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Situational Leadership Theory (SLT)

A contingency theory that focuses on followers’ readiness; the more “ready” the followers (the more willing and able) the less the need for leader support and supervision.

LOW Amount of Follower Readiness HIGH

Amount of Leader Support &

Supervision Required HIGH LOW

Hersey and Blanchard’s Situational Theory

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Path-Goal Theory of Leadership

A theory that says it’s the leader’s job to assist followers in reaching their goals and to provide the necessary direction and/or support to ensure that their individual goals are compatible with the overall goals.

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Path-Goal Leadership Styles

Directive Informs subordinates of expectations, gives

guidance, shows how to do tasks. Supportive

Friendly and approachable, shows concern for status, well-being, and needs of subordinates.

Participative Consults with subordinates, solicits

suggestions, takes suggestions into consideration.

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Can You Be a Better Follower?

Ineffective followers may be more of a handicap to an organization than ineffective leaders.

What qualities do effective followers have? They manage themselves well. They are committed to a purpose outside

themselves. They build their competence and focus their efforts

for maximum impact. They are courageous, honest, and credible.

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Transactional vs. Transformational Leadership Transactional leaders

Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

Transformational leaders Leaders who inspire followers to go beyond

their own self-interests for the good of the organization, and have a profound and extraordinary effect on their followers.

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Full Range of Leadership Model

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Charismatic Leadership Theory

Leadership that critically examines the status quo with a view to developing and articulating future strategic goals or vision for the organization, and then leading organizational members to achieve these goals through empowerment strategies.

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Dispersed Leadership

Mentoring Providing Team Leadership

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Mentoring

Many leaders create mentoring relationships. A mentor is often a senior employee who

sponsors and supports a less-experienced employee (a protégé).

The mentoring role includes: Coaching Counseling Sponsorship

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Team Leaders

Team leaders need to focus on two priorities: Managing the team’s external boundary Facilitating the team process

Four specific roles: Liaisons with external constituencies. Troubleshooters Conflict managers Coaches

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Factors Calling for Self-Leadership

Reduced levels of supervision Offices in the home Teamwork Growth in service and professional

employment where individuals are often required to make decisions on the spot

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Benefits of Leading Without Authority Latitude for creative deviance

Easier to raise questions. Issue focus

Freedom to focus on single issue, rather than many issues.

Frontline information Often closer to the people who have the

information.

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Contemporary Issues in Leadership

Moral Leadership Gender and Leadership Online Leadership

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The Moral Foundation of Leadership Truth telling Promise keeping Fairness Respect for the individual

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Trust

A positive expectation that another will not—through words, actions, or decisions—act opportunistically

Trust is a history-dependent process based on relevant but limited samples of experience

Trust: The Foundation of Leadership

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Leadership Styles

Autocratic Democratic Bureaucratic

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Men’s and Women’s Leadership Styles In general, women fall back on a democratic

leadership style: Encourage participation Share power and information Attempt to enhance followers’ self-worth Prefer to lead through inclusion

Men feel more comfortable with a directive command-and-control style: Rely on formal authority

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Qualities Attributed to Leaders

• Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious.

• Effective leaders are perceived as consistent and unwavering in their decisions.

• Effective leaders project the appearance of being a leader.

Qualities Attributed to Leaders

• Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious.

• Effective leaders are perceived as consistent and unwavering in their decisions.

• Effective leaders project the appearance of being a leader.

Attribution Theory of Leadership

The idea that leadership is merely an attribution that people make about other individuals

Challenges to the Leadership Construct