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ch11_-_effective_leadership.pptx

Chapter 11

Effective Leadership

in the Organization

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Leadership is the process of influencing the activities of an individual or a group toward the achievement of a goal.

While leadership involves inspiring and motivating change in people through a shared vision, management involves organizing processes logically to achieve goals by adding stability.

In short, management influences the brain, while leadership encourages the heart and the spirit.

The Nature of Leadership

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Power is a person’s capacity to influence the behavior and attitudes of others.

Leaders can use several sources of power to gain commitment and/or compliance from followers:

Legitimate power

Reward power

Coercive power

Expert power

Referent power

Charisma

Information power

Affiliative power

Sources of Power

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© 2015 YOLO Learning Solutions

Managers and leaders exercise power to garner an appropriate response from subordinates.

Responses to power from subordinates fall into three major categories:

Commitment―The subordinate does what the leader wants because he or she really wants to.

Compliance―The subordinate does only what is required and nothing more.

Resistance―This can take many forms, from the subtle (such as working slowly) to the obvious and extreme (such as destroying products).

The Use of Power

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Empowerment is the process of providing employees with the ability to contribute input and take on responsibilities for organizational decisions.

Research suggests that employee empowerment and effective communication from managers leads to greater employee satisfaction.

To create employee empowerment, leaders must establish a transparent workplace where employees feel encouraged to contribute ideas and communicate with managers.

Empowerment

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Leadership traits fall into six core-trait categories:

Drive―Leaders desire to achieve and are ambitious.

Motivation―Leaders want to lead; they possess a socialized or positive need for power and are willing to take charge.

Honesty and integrity―The best leaders are honest and truthful, and they do what they say they will do.

Self-confidence―Leaders project their confidence by being assertive and decisive and taking risks.

Cognitive ability―Leaders tend to be intelligent, perceptive, and conceptually skilled, but are not necessarily geniuses.

Business knowledge―Leaders tend to have technical expertise in their businesses.

Trait Approach to Leadership

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Emotional intelligence also appears to be an important characteristic of leaders.

The trait approach has not fully died out, but the focus has shifted more to what leaders do to be successful, rather than on what kinds of personalities or physiques they might have.

Trait Approach to Leadership (continued)

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© 2015 YOLO Learning Solutions

The behavioral theories of leadership all include two major dimensions of leadership behaviors:

One dimension involves getting the job done by directing employees; by scheduling, monitoring, and controlling work; and by providing resources.

The other dimension involves maintaining good leader-subordinate relationships, employee commitment, and satisfaction by listening, supporting, praising, and involving subordinates in work decisions.

Behavioral Models of Leadership

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The Ohio State studies labeled these two dimensions “initiating structure” and “consideration,” respectively, while the Michigan studies called them “task-oriented behaviors” and “relationship-oriented behaviors.”

The leadership grid grew out of the two-dimensional behavioral approach to leadership and describes a leader’s style as a position on a continuum between concern for operations and concern for people.

The trick for managers is to balance these two extremes to consider both people and operations.

Behavioral Models of Leadership (continued)

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© 2015 YOLO Learning Solutions

Situational leadership theory, Fiedler’s contingency theory, and path-goal theory all maintain that the appropriate leadership style is contingent on certain characteristics of the situation.

Situational Leadership Theory

Situational leadership theory contends that a leader’s style should be contingent on subordinates’ skills and dedication.

The biggest takeaway of this theory is that management styles depend on where employees are at in their development.

Contingency Theories of Leadership

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© 2015 YOLO Learning Solutions

Fiedler’s contingency theory suggests that successful leadership requires matching leaders with primarily stable leadership styles to the demands of the situation.

Whether a leader is successful depends on the favorability of the situation, as defined by:

The quality of leader-member relations

The level of task structure

The position power of the leader

Fiedler’s contingency theory was one of the first to recognize the importance of the situation to leadership effectiveness.

Fiedler’s Contingency Theory

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Path-goal theory is concerned with how leaders affect subordinates’ perceptions of their personal and work goals and the paths to goal attainment.

Path-goal theory recognizes four major types of behavior:

Directive leadership―Giving task guidance, scheduling work, maintaining standards, and clarifying expectations

Supportive leadership―Being approachable and showing concern for employees’ well-being

Participative leadership―Consulting with subordinates, soliciting suggestions, and seriously considering others’ input

Achievement-oriented leadership―Setting challenging goals, expecting high performance, and seeking improvement

Path-Goal Theory

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© 2015 YOLO Learning Solutions

Path-goal theory proposes that two classes of situational factors affect what leadership behaviors are appropriate:

Employees’ personal characteristics, such as locus of control

Environmental pressures and demands, including the nature of the task structure, the formal authority of the situation, and the nature of primary work groups

Path-Goal Theory (continued)

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Although the contingency approach is still used, a number of other approaches to the study of leadership have been introduced in recent years.

Leadership Substitutes Theory

Leadership substitutes are aspects of the task, subordinates, or organization that act in place of leader behavior and thus render it unnecessary.

Leadership neutralizers are aspects of the task, subordinates, or organization that paralyze, destroy, or counteract the effect of a leadership behavior.

Current Trends in the Study and Practice of Leadership

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Leadership enhancers are aspects of the task, subordinates, or organization that amplify a leader’s impact on employees.

Understanding how substitutes, neutralizers, and enhancers influence the effectiveness of leadership behavior can help an organization when a leader cannot be changed for political, financial, ethical, or other practical reasons.

Leadership Substitutes Theory (continued)

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The Leader-Member Exchange (LMX) Theory describes how leaders develop “unique” working relationships with each of their subordinates, based on the nature of their social exchanges.

Leaders tend to develop in-groups—those subordinates who are part of their “team”—and out-groups—those who are not.

Research has found that in-group members perform better, have higher levels of satisfaction, are promoted more quickly, and have lower turnover rates.

Leader-Member Exchange Theory

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Charismatic leaders inspire followers to a higher level of performance, instill confidence in themselves and other leaders, empower employees and subordinates, and generate tremendous devotion and obedience.

Charismatic leaders tend to:

Promote causes that deviate greatly from the status quo

Take personal risks that often appear heroic

Engage in unconventional behavior to achieve changes

Assess the environment realistically

Exert personal power (expert and referent) that may involve elitist, entrepreneurial, and exemplary behaviors

Maintain intensely personal relationships with their followers

Charismatic Leadership

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© 2015 YOLO Learning Solutions

Authentic leaders are passionate about company objectives, model corporate values in the workplace, and form strong relationships with stakeholders.

In other words, authentic leaders “practice what they preach.”

Other characteristics of authentic leaders include self-awareness, a drive to achieve the company’s mission, strong connections with stakeholders, and the ability to adopt a long-term perspective.

Authentic Leadership

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Servant leadership is not mutually exclusive of authentic leadership, as servant leaders also lead by example and form strong relationships with employees.

In an organization, a servant leader does not measure success solely by productivity but also by how employees are growing in their skills, well-being, and career opportunities.

Servant leaders model servant leadership for their followers, are people-centric, treat others with respect and integrity, demonstrate humility, and remain vigilant and disciplined.

Servant Leadership

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Transactional leadership is more traditional, with managers engaging in both task- and consideration-oriented behaviors in an exchange manner.

Transformational leadership inspires employees to look beyond their own self-interests and generates awareness and acceptance of the group’s purposes and mission.

Transactional versus Transformational Leadership

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A number of characteristics distinguish transformational leaders from the more traditional transactional leaders:

Charisma

Inspiration

Intellectual stimulation and empowerment

Individual consideration

Change facilitation

Integrity

Transactional versus Transformational Leadership (continued)

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© 2015 YOLO Learning Solutions

Numerous studies over the years have shown that while male and female leaders may have different leadership styles, overall both are equally effective in leading others.

Recent studies show that female leaders actually score higher on many leadership dimensions, such as interpersonal skills, teamwork, empathy, and mentoring.

Despite the equal leadership effectiveness of the two genders, women remain underrepresented in leadership roles.

Gender and Leadership

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Good leaders:

Challenge the process

Inspire a shared vision in followers

Enable others to act by fostering collaboration and empowering others

Model the way by epitomizing the values they encourage in others

Encourage the hearts of their followers by recognizing their contributions and celebrating their accomplishments

The Leadership Challenge

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© 2015 YOLO Learning Solutions