managment organization
Chapter 14 - Leadership
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Leadership
14
1
Explain what leadership is
Describe who leaders are and what effective leaders do
Explain Fiedler’s contingency theory
Describe how path-goal theory works
Explain the normative decision theory
Explain how visionary (that is, charismatic or transformational) leadership helps leaders achieve strategic leadership
Learning Outcomes
LEARNING OUTCOMES
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11| CH14
2
Leaders versus Managers
Leaders
Focus on vision, mission, goals, and objectives
Encourage creativity and risk taking
Have a long-term perspective
Concerned with ends
Managers
Focus on productivity and efficiency
Preservers of status quo
Have a short-term perspective
Concerned with means
LO 1
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Leadership Traits: Trait Theory
Effective leaders possess a similar set of traits or characteristics
Traits: Relatively stable characteristics, such as abilities, psychological motives, or consistent patterns of behavior
LO 2
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4
Leadership Traits: Trait Theory (continued)
Leaders differ from nonleaders based on the following traits:
Drive
Desire to lead
Honesty/integrity
Self-confidence
Emotional stability
Cognitive ability and knowledge of the business
LO 2
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Leadership Behaviors
Initiating structure: Degree to which a leader structures the roles of his or her followers by:
Setting goals
Giving directions
Setting deadlines
Assigning tasks
A leader’s ability to initiate structure affects subordinates’ job performance
LO 2
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6
Leadership Behaviors (continued)
Consideration: Extent to which a leader is friendly, approachable, and supportive and shows concern for employees
Affects subordinates’ job satisfaction
LO 2
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14.1 Blake/Mouton Leadership Grid
LO 2
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14
Exhibit
8
Situational Approach to Leadership
Assumes that the effectiveness of any leadership style depends on the situation
Fiedler’s contingency theory
Performance can be maximized by matching leaders to the situations that best fit their leadership styles
LO 3
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
9
Fiedler’s Contingency Theory
Assumptions
Leaders are effective when their work groups perform well
Leaders are unable to change their leadership styles
LO 3
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Fiedler’s Contingency Theory (continued)
Least Preferred Coworker (LPC)
Questionnaire used to measure leadership style
Score above 64 - Relationship-oriented style
Score 57 or below - Task-oriented style
Score from 58 to 63 - Flexible style
LO 3
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
11
Situational Favorableness
Degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members
Factors that determine situational favorableness
Leader-member relations
Task structure
Position power
LO 3
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14.3 Matching Leadership Styles to Situations
LO 3
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14
Exhibit
Hersey and Blanchard’s Situational Theory
States that leaders need to adjust their leadership styles to match followers’ readiness
Performance readiness: Ability and willingness to take responsibility for directing one’s behavior at work
LO 4
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Hersey and Blanchard’s Situational Theory (continued 1)
Components of readiness - Job readiness and psychological readiness
Combined to produce four different levels of readiness
R1 - Represents insecure people who are neither willing nor able to take responsibility for guiding their own work
LO 4
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Hersey and Blanchard’s Situational Theory (continued 2)
R2 - Represents people who are confident and are willing but not able to take responsibility for guiding their own work
R3 - Represents people who are insecure and are able but not willing to take responsibility for guiding their own work
R4 – Represents people who are confident and willing and able to take responsibility for guiding their own work
LO 4
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Leadership Styles
Telling - Based on the R1 level of readiness
Selling - Based on the R2 level of readiness
Participating style - Based on the R3 level of readiness
Delegating style - Based on the R4 level of readiness
LO 4
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Path-Goal Theory
Leaders can increase subordinate satisfaction and performance by:
Clarifying and clearing the paths to goals
Increasing the number and kinds of rewards available for goal attainment
LO 5
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
18
Path-Goal Theory (continued)
Conditions for path clarification, path clearing, and rewards
Leader behavior must be a source of immediate or future satisfaction for followers
Leader behavior must offer something unique and valuable to followers while providing the coaching, guidance, support, and rewards necessary for effective work performance
LO 5
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14.5 Path-Goal Theory
LO 5
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14
Exhibit
14.6 Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership
| Directive Leadership | Supportive Leadership | Participative Leadership | Achievement-Oriented Leadership |
| Unstructured tasks | Structured, simple, repetitive tasks Stressful, frustrating tasks | Complex tasks | Unchallenging tasks |
| Workers with external locus of control | Workers lack confidence | Workers with internal locus of control |
LO 5
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14
Exhibit
14.6 Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership (continued)
| Directive Leadership | Supportive Leadership | Participative Leadership | Achievement-Oriented Leadership |
| Unclear formal authority system | Clear formal authority system | Workers not satisfied with rewards | |
| Inexperienced workers | Workers lack confidence | Experienced workers | |
| Workers with low perceived ability | Workers with high perceived ability |
LO 5
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14
Exhibit
Normative Decision Theory
Helps leaders determine an appropriate amount of employee participation when making decisions
Decision styles
Autocratic (AI or AII), consultative (CI or CII), and group (GII) decisions
LO 6
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
23
Normative Decision Theory (continued)
Right degree of employee participation improves:
Quality of decisions
Extent to which employees accept and are committed to decisions
LO 6
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14.7 Normative Theory, Decision Styles, and Levels of Employee Participation
LO 6
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14
Exhibit
Normative Theory Decision Rules
Decision rules to increase decision quality
Quality
Leader information
Subordinate information
Goal congruence
Problem structure
LO 6
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Normative Theory Decision Rules (continued)
Rules to increase employee acceptance and commitment to decisions
Commitment probability
Subordinate conflict
Commitment requirement
LO 6
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Visionary Leadership
Creates a positive image of the future that:
Motivates organizational members
Provides direction for future planning and goal setting
Types
Charismatic leadership
Transformational leadership
LO 7
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
28
Types of Charismatic Leadership
Ethical charismatics
Charismatic leaders:
Provide developmental opportunities for followers and recognize others’ contributions
Are open to positive and negative feedback
Have moral standards that emphasize the larger interests of the organization or society
Unethical charismatics
Charismatic leaders:
Control and manipulate followers
Do what is best for themselves
Have moral standards that put their interests before everyone else’s
LO 7
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
29
Transformational Leadership
Generates awareness and acceptance of a group’s purpose and mission
Gets employees to see beyond their own needs and self-interests
Components
Charismatic leadership or idealized influence
Inspirational motivation
Intellectual stimulation
Individualized consideration
LO 7
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
30
Transactional Leadership
Based on an exchange process
Followers are rewarded for good performance and punished for poor performance
Relies heavily on discipline or threats to bring performance up to standards
LO 7
‹#›
MGMT11 | CH14
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Terms
Leadership
Trait theory
Traits
Initiating structure
Consideration
Leadership style
Contingency theory
Situational favorableness
Leader-member relations
Task structure
Position power
Situational theory
Performance readiness
Path-goal theory
Directive leadership
Supportive leadership
Participative leadership
‹#›
MGMT11 | CH14
‹#›
KEY TERMS
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
‹#›
Key terms
Achievement-oriented leadership
Normative decision theory
Strategic leadership
Visionary leadership
Charismatic leadership
Ethical charismatics
Unethical charismatics
Transformational leadership
Transactional leadership
‹#›
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
HIST4 | CH6
‹#›
MGMT11 | CH14
‹#›
KEY TERMS (continued)
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
‹#›
Summary
Leadership is the process of influencing others to achieve group or organizational goals
Situational approaches to leadership include Fiedler’s contingency theory, Hersey and Blanchard’s situational leadership theory, path-goal theory, and normative decision theory
Visionary leadership includes charismatic and transformational
‹#›
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
HIST4 | CH6
‹#›
MGMT11 | CH14
‹#›
SUMMARY
Copyright ©2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
‹#›
Chapter 14
‹#›
Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
MGMT11 | CH14