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Management, 3rd edition Hitt/Black/Porter

Owner/Operator Shoppes at Bridgestone

Village Arlington, TX

Managerial Challenges: From the front line

8-3

Taylor Ridout Gray

First job: Events coordinator for a trading-card company

Motto: Trust your instincts Think, execute, and balance

Do the right thing

Management

Style: Firm, but friendly

Key Topics

 Leadership—a process of influence

• Where—any level, managerial position offer more opportunities

• Critical issue—convert potential into actual, effective leadership

• Fundamental elements—leaders, followers, and situations

 Leaders—traits, competencies, skills, behaviors

 Managing vs. leading

 Power—position and personal

Learning Objectives

After studying this chapter, you should be able to:

 Define leadership and be able to discuss its significance in organizations

 Compare managing and leading and differentiate between them

 Analyze a leader’s sources of power and issues in using power effectively

 Describe and contrast the roles of the leader, followers, and the situation in the overall leadership process

 Discuss the extent to which national cultures create differences in effective leadership behaviors from one country to another

 Explain the conditions that can substitute for, or neutralize, effective leadership

 Plan how to improve your own leadership capabilities

Organizational leadership

 Interpersonal process

 Attempts to influence other people to attain a goal

Leadership behavior  Can be shown by anyone

 Is expected of most managers

 Could be demonstrated more

What Is Leadership?

8-6

Leadership

Position

Deliberate

Goal

Compliance

Less Agreement  Refer only to

those in designated leader position

 Influence exercised  Deliberately  Specific goal

attainment

 Compliance must be voluntary

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What Is Leadership?

Agreement Leadership is an influence process

Leadership

Position

Deliberate

Goal

Compliance

Position  Anyone can exhibit

acts of leadership  Distributed leadership

 Goal + Deliberate  Act as leaders for

many reasons  Motives are seldom

single-focused  Not necessarily specific

goal attainment

 Compliance  More voluntary,

more effective

8-8

What is Leadership?

Effective leadership  Influence that assists an

organization to meet its goals and perform successfully

Effective leaders  Enable people to accomplish

more than if there had been no such leadership

 Unlock other people’s potential

What Is Effective Leadership?

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Managers—task-oriented  Deal with interpersonal conflict

 Plan and organize

 Implement goals set by others (the leaders)

Leaders—future-directed •Create vision for organizations/units

• Promote, set, and communicate new directional goals and procedures

• Inspire subordinates

•Foster innovation and creativity

•Improve organization’s performance

Leading and Managing: Overlapping Roles

Leading and Managing: The Same or Different?

 Managing ought to involve most of the activities thought of as leading

• Organizations need their managers

to incorporate

leadership roles into

their behavior

Exhibit 8.1

Effect of Culture on Attitudes Toward Leaders’ Attributes

Exhibit 8.2

 Formerly she was ◦ the Managing Director of

MTV Greater China ◦ Executive Vice President of

MTV Networks Asia ◦ Chief Representative of

Viacom China

 Smart, confident, and female ◦ Yifei Li has had to take a

different approach to dealing with male business people in that country, particularly as a woman in China



Yifei Li made The Asian Wall Street Journal’s “Ten Women to Watch in Asia” list in 2005 and 2006

Yifei Li—high-level executive, Publicis Groupe in China

You have to be a little bit softer, and humble

Leadership and Power

Power  The capacity or ability to influence

Power can  Lead to greater capacity to influence

 Be used to

◦ overcome resistance

◦ get people to do things they would not otherwise do

 Be abused and lead to undesirable consequences

 Produce positive outcomes if used skillfully

Types and Sources of Power

• Based on a manager's rank in an organizational structure

• Given to the manager by superiors

Position Power

• Based on a person's individual characteristics

• Stay with the individual regardless of his or her position in the organizational structure

Personal Power

Types of Power

Exhibit 8.3

Four Key Issues in Using Power

Exhibit 8.4

Power • Provides basis for

influence

• Must be converted into actual leader behaviors

• Skillful use can be developed by anyone

• Resource that can expand/shrink over time

How to Use Power?

8-18

Influence Tactics

• Specific behavior—can affect •Behavior of other people

•Attitudes of other people

Types of Influence

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Type What agent does How/why

Rational Persuasion

Uses logical arguments and factual evidence

To show a proposal/request is feasible and relevant for attaining important task objectives

Apprising Explains how to carry out a request or supporting a proposal

Will benefit the target personally or help advance the target person’s career

Inspirational Appeals

Makes an appeal to values and ideals or seeks to arouse the target person’s emotions

To gain commitment for a request or proposal

Consultation Encourages target to suggest improvements in a proposal or to help plan an activity or change

Target person’s support or assistance is desired

Exhibit 8.5

Types of Influence

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Type What agent does How/why

Exchange Offers incentive, suggests exchange of favors, indicates willingness to reciprocate

If target will do what the agent requests

Collaboration Offers to provide relevant resources and assistance

If target will carry out a request or approve a proposed change

Personal Appeals

Uses friendship or asks for a favor

Asks target to carry out request or support proposal

Ingratiation Uses praise and flattery; expresses confidence in target’s ability

For target to carry out a difficult task

Exhibit 8.5 continued

Types of Influence

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Type What agent does How/why

Legitimating Tactics

Refers to rules, formal policies, or official documents

Seeks to establish legitimacy of a request or to verify authority to make it

Pressure Uses demands, threats, frequent checking, or persistent reminders

To influence the target person

Coalition Tactics

Seeks aid of others; uses the support of others

Persuade target to do something; as a reason for the target to agree

Exhibit 8.5 continued

Should power be shared?

 Where • Firm-wide basis • An individual manager/leader also can do it

 How • Delegating more formal authority to make specified

decisions

• Offering increased training opportunities to develop expertise/self-confidence

• Providing more resources/access to information to implement decisions

• Not rescinding the shared power at the first sign of trouble

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Empowerment

8-23

 Sharing power with others, especially to decision making

 Key leadership practice • Help organizations perform at

high levels

• Cope successfully with major changes

• Facilitate organizational commitment, learning, and innovation

Locus of Leadership

Three leadership variables

 The leader

 The situation

 The followers

Locus of leadership  Where the three

variables intersect

8-24

Exhibit 8.6

Leaders’ Traits

8-25

Exhibit 8.7

Special Case of Charisma

 Charismatic Leader Traits • Strong need for power

• High levels of self-confidence

• Strong belief in their own ideas

• Charismatic Leaders likely • Model desired behaviors

• Communicate high expectations for followers’ performance

• Concerned with and try to influence the impressions of others

• Emphasize ideals, values, and lofty goals

8-26

Attributes of Charismatic Leaders

8-27

Exhibit 8.8

Downside of Charismatic Leadership

 Relatively few people are charismatic

 Do not always suit the requirements of the situation

 Can be used for harmful ends as well as good

8-28

Set of traits that confer

special power, but does

not guarantee it always

will be used for

worthy goals

Skills:

Leaders’ Skills and Competencies

8-29

Competencies:

●Emotional Intelligence ●Social Intelligence

Emotional and Social Intelligence

Emotional Intelligence

• Self Awareness

• Self Regulation

• Motivation

• Empathy

• Social Skills

Social Intelligence

• Social Perceptiveness

• Behavioral Flexibility

• Savvy

8-30

Adapted from Exhibit 8.9

Leaders’ Behaviors

8-31

Exhibit 8.10

Leadership Approaches: Based on Leaders’ Behavior

AUTHENTIC LEADERSHIP

Model self-awareness and regulation and motivate followers to act more authentically too

TRANSFORMATIONAL LEADERS

Leaders who inspire followers to make major changes or to achieve at very high levels

TRANSACTIONAL LEADERSHIP

Emphasizes the exchange of rewards for followers’ compliance

BLAKE & MOUTON: MANAGERIAL GRID

Best managers are both task- and people-oriented

8-32









 Focus—two leadership behaviors • Concern for people

• Concern for results `

 Approach—one universal “best” type of leader • Leader = heavy emphasis

• Follower and situation = little emphasis

• Results—Leaders high on one dimension but low on the other are viewed as lacking in one of the two critical skills needed for leadership success

Low High

Low

High

Concern for Results Task-oriented

C o

n c e rn

f o

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e o

p le

P e o

p le

-o ri

e n

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1 2 3 4 5 6 7 8 9

9.9

Team

Management

1.1

Impoverished

Management

5.5

Organization Man Mgt

9.1

Authority

Obedience

1.9

Country Club

Management

 Managerial Grid—People vs. Tasks

Transformational Leaders

 Motivate followers to…

• Ignore self-interest

• Work for the larger good of the organization

• Achieve significant accomplishments

• Make major changes

8-34

Empower and

coach followers

Study: Transformational Leaders

 Viewed themselves as agents of change

 Were thoughtful risk takers

 Were sensitive to people’s needs

 Stated a set of core values to rally around

 Were flexible and open to learning

 Had good analytical skills

 Had considerable confidence in their vision for the organization

8-35

Empower and

coach followers

Transactional Leadership

Transactional leadership

 Is more passive

 Emphasizes exchange or rewards or benefits for compliance with leader’s requests

 Appeals to followers’ self-interests to motivate their performance

8-36

Transformational vs. Transactional

8-37

Exhibit 8.11

Guidelines for Transformational Leadership

8-38

Exhibit 8.12

Authentic Leadership

Authentic Leadership Development Theory

8-39

Authentic leaders • Earn designation from others

• Have high self-awareness

• Have high self-regulation

• Develop follower’s trust

• Motivate followers to act more

authentically

Leadership—Followers

Followers have • Personality traits

• Past experiences

• Beliefs and attitudes

• Skills and abilities

• Lower position power than leaders

• Every leader is also a follower of someone

8-40

 The first year at the U.S. Military Academy at West Point is used to teach cadets to be good followers

 and in so doing to demonstrate to them what makes an effective leader.

8-41

Good Followers Make Effective Leaders

Leadership Approaches: Based on Followers

LEADER-FOLLOWER RELATIONSHIP

Leader-Member Exchange (LMX)

HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP

Focus: Followers’ readiness to engage in learning new tasks

8-42

Situational Leadership

 Leadership behaviors depend on “readiness” of followers

◦ Ability in a specific task

◦ Motivation to undertake the new task

 Leadership behaviors

◦ Supportive—people orientation

◦ Directive—task orientation

8-43

Leader-Member Relationships Over Time

8-44

Exhibit 8.13

Leader-Member Exchange Theory

8-45

•Quality of the leader-member

relationship can influence

behavior of subordinates

•Leader should build strong,

mutually beneficial and

satisfying relationship

•Relationship goes through

stages:

•Stranger

•Acquaintance

•Maturity

Leadership: Types of Situations

ORGANIZATIONAL CONTEXT

Culture of organization + structure + HR policies +

pattern of controls

TASKS: Nature of the Work

Structured/unstructured tasks + high/low worker discretion

8-46

Leadership: Approaches Based on Situational Contingencies

HOUSE: PATH-GOAL THEORY

Focus: Use leadership approach based on

both subordinate skills and situation

FIEDLER: CONTINTENCY

LEADERSHIP MODEL

Focus: Type of leader and the degree of favorability of the situation

8-47





Contingency Leadership Model

Premise: Leadership effectiveness depends on combination of

1. Type of leader • Task oriented • Person oriented

2. Favorability of situation for the leader • Favorable situation • Unfavorable situation

8-48

Conditions

Favorable situation for leader

 Relations with

subordinates are good

 Task is highly structured

 Leader has considerable

position power

Contingency Leadership Model

8-49

• Good subordinate relationships

• Highly structured task

• High amount of position power

Situation Favorable

• Poor subordinate relationships

• Unstructured task

• Leader lacks position power

Situation Unfavorable

Contingency Leadership Model

8-50

• Do best when the situation is either:

• Highly favorable, or

• Highly unfavorable

TASK-ORIENTED LEADERS

• Do best when the situation is either:

• Moderately favorable, or

• Moderately unfavorable

PEOPLE-ORIENTED LEADERS

Path-Goal Theory of Leadership

Primary value

Helping potential leaders to think systematically

about what types of behavior might work best in what types of situations

8-51

Leader’s job Increase subordinate satisfaction and effort

Assumption

One leadership approach will work better in some task situations than others

Leaders can modify their styles to suit the situation

Leadership behaviors

Supportive—person oriented

Directive—task oriented

Path-Goal Theory of Leadership

8-52

Exhibit 8.14

Locus of Leadership

8-53

Substitutes for

Leadership

Professional orientation

Advisory or staff support

Cohesive work group

Direct feedback from task

Intrinsically satisfying

task

Ability, experience,

training

Exhibit 8.15 adaptation

Summary: Key Topics

 Leadership—a process of influence

• Where—any level, managerial positions offer more opportunities

• Critical issue—convert potential into actual, effective leadership

• Fundamental elements—leaders, followers, and situations

 Leaders—traits, competencies, skills, behaviors

 Managing vs. leading

 Power—position and personal

Owner/Operator Shoppes at Bridgestone

Village Arlington, TX

Managerial Challenges: Rest of the Story From the front line

8-55

Taylor Ridout Gray

Learning: Not everybody can be friends

Change: Need to have clear job descriptions and expectations

Empower employees to get job done

Responsible for meeting jobs’ objectives

Result: Complex fully leased Honor—40 [achievers] under 40

No. Question

1 Which traits, skills, and behaviors associated with successful leaders does Grace possess? Are there characteristics she could enhance to improve her leadership ability?

2 Why did Grace have problems making changes and maintaining discipline when she first was promoted to a position that required leadership?

3 Analyze Grace’s leadership situation in terms of her sources of power: Are there types of power she could not or should not use? What types of power could she draw on, and how could she use these types to greater effect?

4 Are there substitutes for leadership present in this situation? What neutralizers must Grace overcome to be an effective leader?

Closing Case: The New Supervisor

5-56