Mgmt Leadership

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Chapter 1 Leadership

Chapter One

Definition and Significance of Leadership

Chapter 1 Leadership

Learning Objectives

Define leadership and leadership effectiveness.

Explain why people need 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.

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Key Elements of the Definition of Leadership

The various definitions of leadership share 3 common elements:

Leadership is a group phenomenon;there can be no leaders without followers. As such, leadership always involves interpersonal influence or persuasion.
Leadership is goal-oriented; leaders guide and influence others through a certain course of action or the achievement of certain goals.
Leadership involves some form of hierarchy in groups:in some cases, the hierarchy is formal and well defined, with the leader at the top;in other cases, its is informal and flexible

Chapter 1 Leadership

Definition 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

Chapter 1 Leadership

Definition of Leadership Effectiveness

Leaders are effective when their followers achieve their goals, can function well together, and can adapt to the changing demands from external forces

Chapter 1 Leadership

Key Elements of Effectiveness

Goal achievement, which includes meeting financial goals,producing quality products or services, addressing the needs of customers..
Smooth internal processes, including group cohesion, follower satisfaction and efficient operations.
External adaptability, which refers to a group’s ability to change and evolve successfully.

Chapter 1 Leadership

Why Do We Need Leaders?

To keep groups orderly:The existence of groups requires some form of organization and hierarchy.Whereas, individual group members may have common goals, they also have individual needs and aspirations. Leaders are needed to pull the individuals together, organize and coordinate their efforts.
To accomplish complex tasks: Groups allow us to accomplish tasks that individuals alone could not undertake or complete.leaders are needed to facilitate that accomplishment, to provide goals and directions and coordinate activities.Leaders are the instrument of goal achievement

Chapter 1 Leadership

To help make sense of the world by providing validation:Leaders help us make sense of the world, establish social reality, and assign meaning to events and situations that may be ambiguous.
As a romantic ideal: Leadership is needed to fulfill our desire for mythical or romantic figures who represent us and symbolize our own and culture’s ideals and accomplishments.

Chapter 1 Leadership

Leadership and Management

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

Managerial Roles

Figurehead
Leader
Liaison
Monitor
Disseminator

Spokesperson
Entrepreneur
Disturbance handler
Resource allocator
Negotiator

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Leader’s Function in Shaping Culture

LEADER

Organizational

Culture

Role

Model

Reward

System

Hiring

Decisions

Strategy &

Structure

Chapter 1 Leadership

Functions of the leader: creation and maintenance of an organizational culture

Organizations often comes to mirror their founders 'personalities.The founder style or the founder’s family has an impact on the culture of an organization.If the founder is workaholic and control oriented, the organization is likely to push for fast-paced decision making and be centralized. If the founder is participative and team oriented, the organization will be decentralized and open.

Leaders are role models for other organizational members. Followers take their cues from the leaders on what behaviors are and are not acceptable.A key function of leaders is to manage the emotions of group members. Followers observe their leaders’ emotional reactions and take their cue from them to determine appropriate reactions.

Chapter 1 Leadership

Functions of the leader: creation and maintenance of an organizational culture

Other means through which the leader shapes culture are by decisions regarding the reward system and by controlling decisions standards. In one organization, rewards (financial and nonfinancial) go to only the highest contributors to the bottom line. In another, accomplishments such as contribution to cultural diversity or the degree of social responsibility are also valued and rewarded.

The power of a leader to make decisions for the organization about structure and strategy is another effective means of shaping culture. A highly decentralized and organic structure is likely to be the result of an open and participative culture, whereas a highly centralized structure will go hand in hand with a mechanistic/bureaucratic culture.

Chapter 1 Leadership

New Roles for Leaders

Leader

assumes

responsibility

Control-oriented Leadership

Result-oriented Leadership

Leader and follower

assume

responsibility

Plan

Lead

Control

Results

Lead

Control

Plan

Results

Chapter 1 Leadership

New Roles for leadership

Employees in traditional organizations are responsible only for production; The planning, leading, and controlling functions, as well as the responsibility for results, fall on the manager. An increasing number of organizations, however, are shifting the activities and responsibilities typically associated with managers to employees. Managers are expected to provide the vision, get the needed resources to employees, act as support persons, and get out of employees way

The employees in turn learn about the strategic and financial issues related to their job, plan their own activities, set production goals, and take responsibility for their results.

Researchers found that in the most admired companies, the key priorities were teamwork, customer focus, fair treatment of employees, initiative, and innovation

Chapter 1 Leadership

Factors Fueling Change

Changes in

Organizations

and Leadership

Worldwide

Political

Changes

Demographic

Changes

Employee

Expectations

Increased

Globalization

Chapter 1 Leadership

Factors fueling changes
A number of external and internal organizational factors are driving the changes in our organizations and in the role of leaders and managers.

First, political changes worldwide are leading to more openness and democracy

Second, with increasing global and local competition and complex and fast-changing technologies, numerous organizations struggle for their survival and to justify their existence. Many are forced to reconsider how they provide goods and services to their customers.

Another key factor fueling changes in leadership are the demographic changes in a lot of countries. These demographic changes lead to increased diversity in the various groups and organizations.

Chapter 1 Leadership

Additionally, employees attain increased levels of education today, and the younger generation enters the workplace with expectations of participation and autonomy. The younger generations entering the workforce expect fast promotions, challenging learning opportunities, training, and worklife-balance

Chapter 1 Leadership

Diversity in U.S. Population

Source: U.S. Census Bureau, Census 2000 http://www.census.gov/population/

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Barriers to Change

Perceived financial pressures
Top management still focused on one person
Traditional hierarchies
Employee input not fully considered
Focus on individual performance
Traditional management

75.1%

12.3%

2.4%

5.5%

0.1%

3.6%

0.9%

White alone

Black alone

American Indian and

Alaska Native alone

Asian alone

Native Hawaiian and other

Pacific Islander alone

Some other race alone

Two or more races