Dan C. Lungescu, PhD, assistant professor2015-2016

ManagementPart IV: Leading

Ch. 13. Leadership

Course outline

Part I: Introduction

Part II: Planning

Part III: Organizing

Part IV: Leading

Part V: Controlling

Management

Part IV outline

Part IV: Leading

Management

Ch. 12. Motivation

Ch. 13. Leadership

Ch. 14. Communication

Ch. 15. Managing groups

Learning objectives

After studying this chapter, you should:

Define power and review the bases of individual power. Discuss the concept of empowerment. Define and discuss the role of formal and emergent

leadership. Explain and evaluate the trait approach to leadership. Explain the task function and social-emotional function of

emergent leadership and the concepts of considerationand initiating structure.

Describe and evaluate Fiedler’s contingency theory and other situational theories.

Chapter 13 outline

A. Power in organizations

B. What is a leader?

C. The nature of leadership

D. Leadership traits

E. Leadership styles

F. Contingent leadership

A. Power in organizations

Outline » A. Power in organizations

The capacity to influence others who are in a state of dependence.

Power

Power is only the capacity – it is not always exercised.

Power is only the possibility, not the right to influence.

Power can flow in any direction in an organization.

This broad concept applies to both individuals and groups.

The fact that the target of power is dependent on the power holderdoes not imply that a poor relationship exists between the two.

The bases of individual power

Outline » A. Power in organizations » The bases of individual power

Personal power

Referent power. Expert power. Information power. Connection power.

Positional power

Legitimate power. Reward power. Coercive power. Resource power.

John French and Bertram Raven:

I. Positional power

Outline » A. Power in organizations » The bases of individual power » I. Positional power

it bakes up legitimate power

it bakes up legitimate power

Derived from the right to allocate resources and to control others’access to those resources.

4. Resource power

Derived from a person’s position or job in an organization.

1. Legitimate power (formal power, authority)

Derived from the ability to provide positive outcomes and preventnegative outcomes.

2. Reward power

Derived from the use of punishment and threat.

3. Coercive power

II. Personal power

Outline » A. Power in organizations » The bases of individual power » II. Personal power

Derived from being well liked by others.It stems from identification with the power holder.

1. Referent power

Derived from having special information or expertise that is valuedby an organization.It corresponds to difficulty of replacement.

2. Expert power

Derived from having access to non-professional information.

3. Information power

Derived from being able to use links to other influential people tosupport the more direct power of the power holder.

4. Connection power

Empowerment

Outline » A. Power in organizations » Empowerment

Giving people the authority, opportunity, and motivation to takeinitiative and solve organizational problems.» putting power where it is needed.

Empowerment

Authority to solve an organizational problem (legitimate power) might beincluded in a job description, or a boss might delegate it to a subordinate.

1. Authority

Having opportunity usually means freedom from bureaucratic barriers andother system problems that block initiative.

2. Opportunity

Hiring people who will be intrinsically motivated by power and opportunity;aligning extrinsic rewards with successful performance; expressingconfidence in subordinates’ abilities.

3. Motivation

Power and performance

Outline » A. Power in organizations » Power and performance

Power

Perf

orm

ance

Inadequate Sufficient Excessive

Ineffective

Effective

B. What is a leader?

Outline » B. What is a leader?

What is a leader? (2)

Outline » B. What is a leader? (2)

Someone situated in front of a group. A person who conducts, guides, or inspires others. The person exerting the influence. Head, boss, chief, director, conductor, ruler, strongman. Anybody who makes people do what he/she wants them to do,

even if they do not wish to do so.

Leader

Person or function (rank) that holds a dominant or superior positionwithin its field, and is able to exercise a high degree of control orinfluence over others.

Leader

The one who has followers.

Leader

Types of leaders

Outline » B. What is a leader? » Types of leaders

Formal leader(manager)

Officially in front of his/her group.

Followed because of his/her position.

Informal leader(emergent leader)

Accepted as leaders by his/her followers.

Followed because of his/her personality.

Leader’s roles

Outline » B. What is a leader? » Leader’s roles

Create an inspiring vision and lead by example.

Empower, inspire and energize people.

Build and lead a team.

C. The nature of leadership

Outline » C. The nature of leadership

The influence that particular individuals exert on the goalachievement of others in an organizational context.

Leadership

Leadership is a relationship between those who aspire to lead andthose who choose to follow.

1. Relationship

Leadership is a process whereby an individual influences a group ofindividuals to achieve a common goal.

2. Process

Leadership is the ability of an individual to influence, motivate, andenable others to contribute toward the effectiveness and success ofthe organization.

3. Ability

Three major points in leadership

Outline » C. The nature of leadership » Three major points in leadership

Leadership

Follower

Leader

Situation

Major issues in leadership

Outline » C. The nature of leadership » Major issues in leadership

Are leaders born or made?

Leadership traits

Leader’s behavior (style)

Contingency theories

Modern leadership

D. Leadership traits

Outline » D. Leadership traits

Distinctive internal qualities or characteristics of an individual, suchas physical characteristics, personality characteristics, skills andabilities, and social factors.

Leadership traits

Traits usually associated with leadership effectiveness:Intelligence

Energy

Self-confidence

Dominance

Motivation to lead

Emotional stability

Honesty and integrity

Need for achievement

Traits associated with individuals identified as leaders:intelligence, dominance, aggressiveness, decisiveness.

E. Leadership styles

Outline » E. Leadership styles

Decision-making styles (authoritarianism)

II. Iowa studies

III. The leadership continuum

Concern for structure vs. people

IV. Ohio State studies

V. Michigan studies

I. Theories X and Y [see Chapter 2]

VI. Leadership grid

II. Iowa studies

Outline » E. Leadership styles » II. Iowa studies

Kurt Lewin [1890-1947](followed by Lippitt and White) » leader styles.

1. Autocratic

1.a. Directive autocrat

1.b. Permissive autocrat

1+. Paternalistic

2. Democratic

2.a. Directive democrat

2.b. Permissive democrat

3. Laissez-faire

Iowa studies (2)

Outline » E. Leadership styles » II. Iowa studies (2)

The leader makes unilateral decisions, dictates work methods, limits workerknowledge about goals to just the next step to be performed, andsometimes gives feedback that is punitive.

1. Autocratic

The leader is a dictator; however, when making decisions he/she takes intoaccount the best interests of the subordinates.

1+. Paternalistic

The leader involves the group in decision making, lets the group determinework methods, makes overall goals known, and uses feedback as anopportunity for helpful coaching.

2. Democratic

The leader generally gives the group complete freedom, provides necessarymaterials, participates only to answer questions, and avoids givingfeedback.

3. Laissez-faire

III. The leadership continuum

1. Tells: Manager makes decision and announces it.2. Sells: Manager sells decision.3. Suggests: Manager presents ideas and invites questions.4. Consults: Manager presents tentative decision subject to change.5. Joins: Manager presents problem, gets suggestions, makes decision.6. Delegates: Manager defines limits; asks group to make decision.7. Abdicates: Manager permits subordinates to function within limits

defined by superior.

Outline » E. Leadership styles » III. The leadership continuum

Robert Tannenbaum & Warren Schmidt» a continuum of leadership behaviors.

Subordinate-centeredleadership

Boss-centeredleadership

Area offreedom for subordinates

Use of authority by the manager

1 2 3 4 5 6 7

IV. Ohio State studies

Outline » E. Leadership styles » IV. Ohio State studies

The degree to which a leader defines his/her own role and the rolesof subordinates in terms of achieving unit goals.

1. Initiating structure

The degree to which a leader builds mutual trust with subordinates,respects their ideas, and shows concern for their feelings.

2. Consideration

The two most important dimensions in leadership:

These characteristics could be either high or low.They were independent of one another.

V. Michigan studies

Outline » E. Leadership styles » V. Michigan studies

Two types of leaders:

2. Employee centered

1. Job centered

Three critical characteristics of effective leaders:

1. Task oriented behavior

2. Relationship-oriented behavior

3. Participative leadership

VI. Leadership grid

Outline » E. Leadership styles » VI. Leadership grid

Robert Blake&

Jane Mouton

Original name: managerial grid.

Concern for production

Conc

ern

for p

eopl

e

1 2 3 4 5 6 7 98

9

8

7

6

5

4

3

2

1

1,9Country club management

9,9Team

management

1,1Impoverished management

9,1Authority-obedience

5,5Organization

man management

Leadership grid (2)

Outline » E. Leadership styles » VI. Leadership grid (2)

Efficiency in operations results from arranging conditions of work in such away that human elements interfere to a minimum degree.

9,1 – Authority-obedience

Thoughtful attention to needs of people for satisfying relationships leads toa comfortable friendly organization atmosphere and work tempo.

1,9 – Country club management

Exertion of minimum effort to get required work done is appropriate tosustain organization membership.

1,1 – Impoverished management

Work accomplishment is from committed people; interdependence through acommon stake in organization purpose leads to relations of trust and respect.

9,9 – Team management

Adequate organization performance is possible through balancing the necessityto get out work with maintaining morale of people at a satisfactory level.

5,5 – Organization man management

F. Contingent leadership

Outline » F. Contingent leadership

Theories of leadership that take into consideration importantsituational factors.

Contingent leadership (situational theories)

The most important situational theories:

I. Situational leadership theory

II. Feadler’s contingency model

III. Normative leadership model

IV. Path-goal theory

I. Situational leadership theory

Outline » F. Contingent leadership » I. Situational leadership theory

A theory based on the premise that leaders need to alter theirbehaviors depending on one major situational factor – thereadiness of followers (their organizational maturity).

Situational leadership theory

Authors: Paul Hersey & Ken Blanchard.

Follower readiness:

1. Very high: able and willing or confident

2. High: able but unwilling or insecure

3. Low: unable but willing or confident

4. Very low: unable and unwilling or insecure

Leadership styles

Outline » F. Contingent leadership » I. Situational leadership theory » Leadership styles

Four leadership quadrants prescribes theappropriate leadership style for a given level of readiness:

Giving individuals specific directions on what to do and how to do it.

1. Telling style

Giving specific directions, but it is also supportive of the individual’swillingness and enthusiasm.

2. Selling style

Supportive style, in which the leader emphasizes two-waycommunication and collaboration.

3. Participating style

Little support or direction.

4. Delegating style

Choosing a leadership style

Outline » F. Contingent leadership » I. Situational leadership theory » Choosing a style

Follower readiness

Task behavior(Guidance)

Relationship behavior(Supportive behavior)

veryhigh high low

verylow

delegating

participating selling

telling

II. Fiedler’s contingency model

Outline » F. Contingent leadership » II. Fiedler’s contingency model

A situational approach that posits that leaders differ in the degreesof their orientation toward the task versus that toward the people –it identifies the types of situations in which each kind of leader islikely to do best.

Fiedler’s contingency model

The leader is asked to describe the person with whom he/she canwork least well by rating the person on a range of 1 to 8 points foreach set.

LPC testLPC = least preferred coworker

A personality trait indicating the extent to which an individualplaces a higher priority or value on personal relationships than ontask accomplishment.

LPC orientation

LPC test (sample items)

Outline » F. Contingent leadership » II. Fiedler’s contingency model » LPC test (sample items)

Unpleasant 1 2 3 4 5 6 7 8 PleasantUnfriendly 1 2 3 4 5 6 7 8 Friendly

Rejecting 1 2 3 4 5 6 7 8 AcceptingTense 1 2 3 4 5 6 7 8 Relaxed

Distant 1 2 3 4 5 6 7 8 CloseCold 1 2 3 4 5 6 7 8 Warm

Hostile 1 2 3 4 5 6 7 8 SupportiveBoring 1 2 3 4 5 6 7 8 Interesting

Quarrelsome 1 2 3 4 5 6 7 8 Harmonious

LPC test (sample items) (2)

Outline » F. Contingent leadership » II. Fiedler’s contingency model » LPC test (sample items) (2)

Gloomy 1 2 3 4 5 6 7 8 CheerfulClosed 1 2 3 4 5 6 7 8 Open

Backbiting 1 2 3 4 5 6 7 8 LoyalUntrustworthy 1 2 3 4 5 6 7 8 TrustworthyInconsiderate 1 2 3 4 5 6 7 8 Considerate

Nasty 1 2 3 4 5 6 7 8 NiceDisagreeable 1 2 3 4 5 6 7 8 Agreeable

Insincere 1 2 3 4 5 6 7 8 SincereUnkind 1 2 3 4 5 6 7 8 Kind

Assessing the situation

Outline » F. Contingent leadership » II. Fiedler’s contingency model » Assessing the situation

Three situational factors that affect the degree offavorability (the degree of situational control)for a leader:

The extent to which a leader has the support of group members.

1. Leader-member relations

The extent to which a task is clearly specified with regard togoals, methods, and standards of performance.

2. Task structure

The amount of power that the organization gives the leader toaccomplish necessary tasks.

3. Position power

Matching style and situation

Outline » F. Contingent leadership » II. Fiedler’s contingency model » Matching style and situation

strong weak strong weak strong weak strong weak

high low

good poor

high low

Leader-member relations

Task structure

Position power

Correlations between LPC orientation

and performance

0

1

-1

Situational favorability/control

Relationship-motivated leaders perform better

Task-motivated leaders perform better

III. Normative leadership model

Outline » F. Contingent leadership » III. Normative leadership model

A model that helps leaders assess critical situational factors thataffect the extent to which they should involve subordinates inparticular decisions.

Normative leadership model

Author: Victor Vroom.

Critical situational factors (questions)

Decision styles (leadership styles)

Choosing one leadership style

Critical situational factors1. QR – quality requirement: how important is the technical

quality of this decision?2. CR – commitment requirement: how important is subordinate

commitment to the decision?3. LI – leader’s information: do you have sufficient information to

make a high-quality decision?4. ST – problem structure: is the problem well-structured?5. CP – commitment probability: if you were to make that decision

by yourself, is it reasonably certain that your subordinate(s) would be committed to the decision?

6. GC – goal congruence: do subordinates share the organization goals to be attained in solving this problem?

7. CO – subordinate conflict: is conflict among subordinates over preferred solutions likely?

8. SI – subordinate information: do subordinates have sufficient information to make a high-quality decision?

Outline » F. Contingent leadership » III. Normative leadership model » Critical situational factors

Decision styles

A1 – you solve the problem or make the decision yourself using the information available to you at the present time.A2 – you obtain any necessary information from subordinates, then decide on a solution yourself.C1 – you share the problem with the relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group. Then you make the decision.C2 – you share the problem with your subordinates in a group meeting. In this meeting you obtain their ideas and suggestions. Then you make the decision.P – you share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach agreement (consensus) on a solution.

Outline » F. Contingent leadership » III. Normative leadership model » Decision styles

Choosing one leadership style

Outline » F. Contingent leadership » III. Normative leadership model » Choosing one decision style

QR CR LI ST CP GC CO SI

yesno

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A1

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A2

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A1

Dan C. Lungescu, PhD, assistant professor2015-2016