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Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1
Chapter OneChapter One
Definition and Significance Definition and Significance of Leadershipof Leadership
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 2
Learning Objectives Learning Objectives
Define leadership and leadership effectiveness.
Explain why people need leadership.
Discuss the major obstacles to effective leadership.
Compare and contrast leadership and management.
List the roles and functions of leaders and managers.
Summarize the debate over the role and impact of leadership in organizations.
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 3
Some Famous Quotes Some Famous Quotes
“His ambition was a little engine that knew no rest” Abraham Lincoln’s law partner
“Those who stand for nothing fall for anything.” Alexander Hamilton
“If civilization is to survive, we must cultivate the science of human relationships—the ability of all people, of all kinds, to live together, in the same world at peace.” FDR
“Any fool can keep a rule. God gave him a brain to know when to break the rule.” General Willard W. Scott
“If you don’t know where you are going, you will probably end up somewhere else.” David Campbell, The Center for Creative Leadership
Myths that Hinder Leadership Development
• Good leadership is all common sense– “Common sense is the collection of
prejudices acquired by age 18.” – Albert Einstein
• Leaders are born, not made• The only school you learn leadership
from is the school of hard knocks.
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Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 5
Definition of LeadershipDefinition of Leadership
A leader is any person who influences individuals and groups within an organization, helps them in the establishment of goals, and guides them toward achievement of those goals, thereby allowing them to be effective
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Key Elements of the Key Elements of the Definition of LeadershipDefinition of Leadership
Leadership is a group phenomenon
Leadership is goal-oriented; leaders guide and influence others
Leadership involves some form of hierarchy in groups
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 7
Critical ThinkingCritical Thinking
Who comes to mind as a leader?
Do these individuals have anything in common?
What made them effective?
Were there situations at that time that were instrumental in their emergence?
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Key Elements of Key Elements of EffectivenessEffectiveness
The group achieves its goals
Financial goals, quality products)
The group functions well together; there are smooth internal processes
Group cohesion, follower satis
The group can adapt well to external changes
Effective vs. Successful ManagersEffective vs. Successful Managers
Effective Managers Satisfied followers Productive Focus on
communication Active conflict
management Motivate, train and
develop employees
Successful Managers Quick promotions Focus on networking Interact with outsiders Socialize Active in office politics
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Effectiveness
• Affective subordinate reactions (e.g., satisfaction with and/or commitment to leader)
• Objective subordinate reactions (absenteeism, turnover)
• Group dynamics (e.g., cohesion, collaboration, cooperation)
• Performance – Objective (e.g., ROI, sales increase, stock,
profits)– Subjective
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Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 11
Why Do We Need Why Do We Need Leaders?Leaders?
To keep groups orderly
To keep focus on group goals
To accomplish complex tasks
To help make sense of the world by providing validation
As a romantic ideal
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Obstacles to Effective Obstacles to Effective LeadershipLeadership
Environmental uncertainty
Organizational rigidity
Fall back on old ideas and simplistic solutions
Established organizational culture
Inaccessible research
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Leadership and Leadership and ManagementManagement
Managers
Focus on the present
Maintain status quo
Implement policy
Maintain structure
Remain aloof and objective
Use position power
Leaders
Focus on the future
Create change
Initiate policy
Create culture and structure
Establish emotional link with followers
Use personal power
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 14
Managerial RolesManagerial Roles
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance
handler
Resource allocator
Negotiator
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Gender Differences in Gender Differences in RolesRolesMale Managers Work at unrelenting
pace Wide variety of
tasks Frequent
interruptions Little time to
communicate Few non-work
activities Feeling of isolation Identity tied to work Complex network Prefer face-to face
Female Managers Calm steady pace Frequent breaks Did not perceive
interruptions Scheduled time for
communication Many non-work
activities Not isolated Multi-faceted
identity Complex network Prefer face to face
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 16
Leader’s Function in Leader’s Function in Shaping CultureShaping Culture
LEADERLEADER
OrganizationalCulture
OrganizationalCulture
Role Model
Reward System
Hiring Decisions
Strategy &Structure
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Impact of Leadership: Impact of Leadership: Leadership Is Leadership Is InsignificantInsignificant Outside environmental factors affect
organizations more than leadership
Internal structure and strategy determine the course organizations take
Leadership accounts for only between 7% to 15% of performance
Leaders have little discretion to really make an impact
Leadership is a romantic myth rather than a real organizational factor
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 18
Impact of Leadership: Impact of Leadership: Leadership Is Leadership Is SignificantSignificant Leadership is one of many important
factors
Leadership is key to providing vision and direction
Leadership is critical in orchestrating change
Leadership can account for up to 44% of a firm’s profitability
Leadership is critical in orchestrating change
Leadership’s impact is moderated by situational factors
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 19
The Impact of The Impact of LeadershipLeadership
Leadership is one of many factors
Leadership is significant in providing vision and direction
Situations are key to understanding the impact of leadership
Followers are also key to success
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New Roles for LeadersNew Roles for Leaders
Leader assumes responsibility
Plan
Lead
Control
DoResults
Control-oriented Leadership Result-oriented Leadership
Lead
ControlPlan
Do
ResultsResults
Leader and followerassume responsibility
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Factors Fueling ChangeFactors Fueling Change
Changes in Organizations
and Leadership
WorldwidePolitical Changes
Demographic
Changes Employee
Expectations
Increased
Globalization
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Diversity in U.S. Diversity in U.S. PopulationPopulation
75.1%
12.3%
2.4%5.5%0.1%
3.6%0.9%
White alone
Black alone
American Indian andAlaska Native alone
Asian alone
Native Hawaiian and otherPacific Islander alone
Some other race alone
Two or more races
Source: U.S. Census Bureau, Census 2000 http://www.census.gov/population/
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 23
U.S. Demographic U.S. Demographic TrendsTrends In 2000, 13% of population spoke a
language other than English
Women and minorities make up over half of the workforce
By 2016, minorities will be one third of the population
By 2025, Hispanics will outnumber African Americans
By 2025, the average age will be 40
By 2050, the average U.S. resident will be non-European
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Barriers to ChangeBarriers to Change Perceived financial pressures
Short-term orientation
Top management still focused on one person
Traditional hierarchies
Employee input not fully considered
Focus on individual performance
Traditional management
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 25
Leadership ChallengeLeadership Challenge Challenges for new leaders
• Learning new duties
• New roles
• Maintaining relationships Actions that can help
• Training
• Clear message Actions to avoid
• Over managing - taking charge
• Trying to remain “one of the boys”
Chapter 1 Leadership Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 26
Leadership in Action:Leadership in Action:David NeelemanDavid Neeleman Quickly expanding airline
Small size; young fleet
Focus on treating people well
Neeleman provides vision and actively listens to followers
Focus on creativity and use of technology
Nimble and able to change
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Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall