Leadership

Introduction

What is leadership?the process of exerting influence over others

Leadership = management?managers care about processleaders care about outcomes

Leader identificationHow do we find them?

Power & Leadership

Formal Vs. Informal LeadersLeaders must possess and be willing to use

powerfollowers are those with power who refuse to

use itupward acceptance

Evolution of Leadership

The Strong ManThe TransactorThe Visionary HeroThe SuperLeader

emphasis on partnershipemphasis on follower development

Trait Theory of Leadership

Emergence Vs. effectivenessEmergent traits

intellegience height attractiveness self-confidence

Effectiveness traits charisma

Contingency Theories

FiedlerPath-Goal TheoryVroom-Yetten

Fiedler's Contingency Theory

Leaders are oriented to a particular stylestyle is stable & not easy to changeeither task or relationship orientedmeasured by Least Preferred Coworker (LPC)

scale High LPC leaders were people oriented Low LPC leaders were task oriented

Leader-member relationshow well do followers and leader get along

Task structurehow clearly are jobs specified

Position powerthe amount of legitimate, reward, & coercive

power

Situational Factors

Low LPC leaders do best in the most and least favorable of situations

High LPC leaders do best in situations of moderate favorableness

Change situations to match leader style

Leader Effectiveness

Path-goal Theory

Based on expectancy theoryprovide desired rewardsclarify the path needed to attain rewards

Leader behaviors and situational factors

Four leader behaviors

Directiveclarify goals and expectationsexplain job and procedures

Supportiveconcern and supportlisten and advise

Participativeseek ideas and inputhelp make decisions

Achievementsetting high goalsgetting goal commitment

leader must be able to do each of these behaviors

Four leader behaviors (cont’d)

Situational Factors

Subordinate characteristicsability, authoritarianism, & locus of control

(LOC)

Environmental factorstask, formal authority structure, organizational

and group norms

Must analyze the situational factors and apply the proper behavior

high ability achievement

external LOC directive

lots of rules supportive

clear task participative

Proper matching leads to:employee satisfactiongreater quality

Path Goal (cont’d)

Vroom-Jago Model

Helps determine appropriate level of employee participation

Very practical means of assessing the situation

Five styles

Leader Styles

AI - AutocraticSolve the problem yourselfusing the information you have.

AII - Lessautocratic

Obtain the needed informationfrom workers; then solve theproblem yourself. Workersprovide information but notalternatives.

C1- Consultative

Share the problem with workersindividually (but not as a group),seeking suggestions & possiblealternatives. Solve the problemyourself.

Styles (cont’d)

CCIIII -- MMoorreeccoonnssuullttaattiivvee

SShhaarree tthhee pprroobblleemm wwiitthh wwoorrkkeerrssaass aa ggrroouupp,, sseeeekkiinngg ssuuggggeessttiioonnss&& ppoossssiibbllee aalltteerrnnaattiivveess.. SSoollvveeyyoouurrsseellff..

GGIIII -- GGrroouuppddeecciissiioonn

SShhaarree tthhee pprroobblleemm wwiitthh wwoorrkkeerrssaass aa ggrroouupp,, sseeeekkiinngg ssuuggggeessttiioonnss&& ppoossssiibbllee aalltteerrnnaattiivveess.. AAtttteemmppttttoo rreeaacchh aa ccoonnsseennssuuss && bbeewwiilllliinngg ttoo aacccceepptt && iimmpplleemmeenntttthhee wwoorrkkeerrss’’ ssoolluuttiioonn..

Seven analysis questions

A -Is there a quality standard that makes one alternative superior to another

B -Do I have enough information to make a good decisionC -Is the problem structured?D - Must workers accept my decision if they are to

implement it effectively?E - If I make the decision alone, are workers likely to accept

my decision?F - Do workers share the firm’s goals?

G - Is conflict among workers likely among preferred solutions?

A B C D E F G

N

N

NN

N

N N

NN

NN

N

N

N

Y YYYY

YY

YY

Y

Y

Y

YY

AIAI

AIAI

GII

GII

GII

AII

CII

CII

CIICII

CI

AII

Transformational Leadership

Transactional leadershipthe leadership style of managersrelies on extrinsic rewards for controlconcentrate on processcreates bureaucratic behavior

Elements of Transformational Leadership

The leader transforms and motivates followers by:making them more aware of the importance of

task outcomesinducing them to transcend their own self-

interest for the sake of the organization or teamactivating their higher-order needs

Attributes of Effective Transformational Leaders

See themselves as change agentsBelieve in people and are sensitive to their

needsAble to articulate a set of core values which

guide their behaviorAre flexible and open to learning from

experienceAre visionaries who trust their intuition

Transformational Leadership Skills

These skills can be learnedDevelop a Clear VisionDevelop Commitment & TrustUtilize Symbolic Action

Develop a Clear Vision

Recognize the need for change and help others understand this need

Vision must be attractive & inspirationalListen to followers, incorporate their

dreams and valuesGuides behaviors

Develop Commitment and Trust

No trust, no commitmentdon’t play gamesbe honest and open

Express confidence in employeesidentify strengthsdeal with weaknesses

Communication skills are very important

Utilize Symbolic Action

Use stories, colorful and emotional language, metaphors, symbols, and slogans

Lead by exampleyour actions and words are symbolicact in accordance with the vision

Use rites and ceremonies

Empower Employees

Move away from authoritarianism and paternalismcurtail hierarchical myopiacommand and controlentitlements

Create “fully participating partners”Vision guides behavior

Empowerment Principles

Creation and use of knowledgeClarification of decision rightsInvest in employee developmentReward and reinforce appropriate actions

Creation and Use of Knowledge“Knowledge Factors”

Dispersed knowledgemuch knowledge is localdifficult to collect

Tacit knowledgedifficult to articulate and communicate

Knowledge is often untestedhow to deal with new ideasinnovations often discouraged

Implications

Management information systemsManagers do not have complete informationEmployees are an important source of

informationCommand and control structure stifles

creativity and innovation

Clarification of Decision Rights“The Tragedy of the Commons”

Public or common property is that which is owned by a collective

No ownership--no accountability--no incentive to conserve and protect it

It is neglected and/or abusedOften there are too many common goods in

organizations

Clarify Roles and Responsibilities

Create ownershipfor every action, activity, and resultnot just objective

Different than job descriptionConsistent with vision/missionFluid and responsive to changesProcess for resolving disputes

Allocation of Decision Rights

Based on tacit knowledgego with those who know

Decentralize based on knowledgemanagers don’t always know best

Ownership ensures accountabilityCorporate entrepreneursExpand based on demonstrated judgment

Invest in Employee Development

Human resources not labor coststraining and education are investments

Performance =f (Ability x Motivation x Opportunity)

Builds self-efficacy and self-confidenceexpress their tacit knowledgeadd value to companyalert to opportunity and threats

Employee Development (cont’d)

Purpose of knowledge is to ask better questionsMust be allowed to practice and use knowledgeLeaders as mentors and coachesChanging vision may require “remedial”

trainingto over-come old methodsunlearn bad habits

Reward & Reinforce Appropriate Actions

“Rules of Just Conduct”

Clearly expressed values and expectationsPermeate every facet of organizational lifeIntegrate with visionLinked to net present value

ethics and long-term successover-come short-term mind set

Incentive Principles

You get what you pay forconcentrate on objectivesubjective often ignored

Rewards are symbolic“tell” employees what is really importantconsistent with vision & rules of conduct?

Includes both intrinsic and extrinsic

Effective Incentives

Ensure alignment with vision and rules what are you really rewarding

Don’t punish failurelearning experiencesthis kills innovation and creativity

Be creativeRestore vigor and “fun”