Chapter 14 Leadership

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Chapter 14Leadership
Designed Prepared byB-books, Ltd.
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What Is Leadership?
After reading these sections, you should be able
to

• explain what leadership is.
• describe who leaders are and what
  effectiveleaders do.

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Leadership
DifferencesbetweenLeaders andManagers
SubstitutesforLeadership
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Leaders versus Managers
MANAGERS Do things right Status
quo Short-term Means Builders Problem solving
LEADERS Do the right thing Change Long-ter
m Ends Architects Inspiring motivating
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Leaders versus Managers
American organizations (and probably those in
much of the rest of the industrialized world)
are under led and over managed. They do not pay
enoughattention to doing the right thing, while
theypay too much attention to doing things
right. - Warren Bennis
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Substitutes for Leadership
Beyond the Book

• Leadership substitutes
• subordinate, task, or organizational
  characteristics that make leaders redundant or
  unnecessary
• Leadership neutralizers
• subordinate, task, or organizational
  characteristics that interfere with a leaders
  actions
• Leaders dont always matter
• Poor leadership is not the cause of every
  organizational crisis

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Leadership Substitutes and Neutralizers
Beyond the Book
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Who Leaders Are and What Leaders Do
Leadership Traits
Leadership Behavior
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Biz Flix U-571
Beyond the Book
Take Two Video Click
Are the traits or behaviors depicted in the clip
right for this situation? Why or why not?
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Leadership Behaviors
2.2
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Blake/Moulton Leadership Grid
High
Middle of theRoad5,5
5,5
Concern for People
Low
Concern for Production
Low
High
2.2
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Situational Approaches to Leadership
After reading these sections, you should be able
to

• explain Fiedlers contingency theory.
• describe how path-goal theory works.
• explain the normative decision theory.

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Putting Leaders in the Right SituationFiedlers
Contingency Theory
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Putting Leaders in the Right SituationFiedlers
Contingency Theory
Least Preferred Coworker
Situational Favorableness
Matching Leadership Stylesto Situations
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Leadership StyleLeast Preferred Coworker

• Leadership style is the way a leader generally
  behaves toward followers
• seen as stable and difficult to change
• Style is measured by the Least Preferred
  Co-worker scale (LPC)
• relationship-oriented
• task-oriented

3.1
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Leadership StyleLeast Preferred Coworker Scale
3.1
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Situational Favorableness
3.2
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Situational Favorableness
3.2
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Matching Leadership Styles to Situations
3.3
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WellPoint CEO Adopts New Leadership Style
Beyond the Book

• The new WellPoint CEO Angela Braly had to manage
  the dismissal of finance chief David Colby, who
  violated company policy.
• Braly has taken a different approach to messy
  executive dismissals such as this by being open
  and up front about what occurred in order to
  quell rumors.

Source V. Fuhrmans and C. Hymowitz, WellPoints
CEO Takes the Reins, Facing Challenge, The Wall
Street Journal, 6 June 2007, B1.
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Path-Goal Theory
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Basic Assumptions of Path-Goal Theory
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Path-Goal Theory
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Adapting Leader BehaviorPath-Goal Theory
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Leadership Styles

• Directive
• clarifying expectations and guidelines
• Supportive
• being friendly and approachable
• Participative
• allowing input on decisions
• Achievement-Oriented
• setting challenging goals

4.1
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Sue Nokes LeadershipStyle Translates into
CustomerSatisfaction
Beyond the Book

• Sue Nokes, in charge of sales and customer
  service at T-Mobile, is charged with making sure
  customers are happy with their service.
• She does this by making sure customer service
  reps at T-Mobile call centers are happy at their
  jobs. Happy, motivated employees will, in turn,
  serve customers better.
• Some of her techniques showing up at local call
  centers to support employees, listening to
  employee complaints and wishes, creating freedom
  for employees to give honest feedback.
• Source J. Reingold, You Got Served,
  Fortune, 1 October 2007, 55-58.

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Subordinate and Environmental Contingencies

• Task structure
• Formal authority system
• Primary work group

4.2
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Path Goal TheoryWhen to Use Leadership Styles
4.2
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Adapting Leadership Behavior
Beyond the Book
Hersey and Blanchards Situational Leadership
Theory
WorkerReadiness
Leadership Styles
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Worker Readiness
Beyond the Book

• The ability and willingness to take
  responsibility for directing ones behavior at
  work
• Components of worker readiness
• Job readiness
• Psychological readiness

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Worker Readiness
Beyond the Book
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Leadership Styles
Beyond the Book
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Normative Decision Theory
DecisionStyles
Decision Quality and Acceptance
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Decision Styles
5.1
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Outside Pressure on GMRestructuring
Beyond the Book

• Fall 2008 saw the Detroit-based auto industry
  looking to the U.S. government for a bailout to
  keep companies like General Motors from declaring
  bankruptcy.
• Along with a potential 15 billion package,
  government officials exerted outside pressure on
  GM to change its leadership, with some calling
  for the resignation of CEO Rick Wagoner.
• Change in leadership is common during
  retrenchment, whether pressed from inside or
  outside. The problem here? Failure of the
  industry to keep up with consumer preferences and
  innovate.
• Source J. D. Stoll and G. Hitt, Outside
  Pressure Grows for GM to Oust Wagoner, The Wall
  Street Journal, 8 December 2008. A16.

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Decision Quality and Acceptance

• Using the right amount of employee participation
• improves decision quality
• improves acceptance
• Decision tree helps leader identify
• optimal level of participation

5.2
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Normative Theory Decision Rulesto Increase
Decision Quality

• Quality Rule
• If the quality of the decision is important, then
  don't use an autocratic decision style.
• Leader Information Rule
• If the quality of the decision is important, and
  if the leader doesn't have enough information to
  make the decision on his or her own, then don't
  use an autocratic decision style.
• Subordinate Information Rule
• If the quality of the decision is important, and
  if the subordinates don't have enough information
  to make the decision themselves, then don't use a
  group decision style.

5.2
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Normative Theory Decision Rulesto Increase
Decision Quality

• Goal Congruence Rule
• If the quality of the decision is important, and
  subordinates' goals are different from the
  organization's goals, then don't use a group
  decision style.
• Problem Structure Rule
• If the quality of the decision is important, the
  leader doesn't have enough information to make
  the decision on his or her own, and the problem
  is unstructured, then don't use an autocratic
  decision style.

5.2
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Normative Theory Decision Rulesto Increase
Decision Acceptance

• Commitment Probability Rule
• If having subordinates accept and commit to the
  decision is important, then don't use an
  autocratic decision style
• Subordinate Conflict Rule
• If having subordinates accept the decision is
  important and critical to successful
  implementation, and if subordinates are likely to
  disagree or end up in conflict over the decision,
  then don't use an autocratic or consultative
  decision style
• Commitment Requirement Rule
• If having subordinates accept the decision is
  absolutely required for successful
  implementation, and if subordinates share the
  organization's goals, then don't use an
  autocratic or consultative style

5.2
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Strategic Leadership
After reading this section, you should be able
to

• explain how visionary leadership (i.e.,
  charismatic and transformational leadership)
  helps leaders achieve strategic leadership.

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Visionary Leadership
CharismaticLeadership
TransformationalLeadership
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Charismatic Leadership

• Creates an exceptionally strong relationship
  between leader and follower
• Charismatic leaders
• articulate a clear vision based on values
• model values consistent with vision
• communicate high performance expectations
• display confidence in followers abilities

6.1
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Kinds of Charismatic Leaders

• Ethical Charismatics
• provide developmental opportunities
• are open to positive and negative feedback
• recognize others contributions
• share information
• show concern for the interests of the group
• Unethical Charismatics
• control and manipulate followers
• do what is best for themselves
• only want positive feedback
• motivated by self-interest

6.1
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Ethical and Unethical Charismatic Leaders
6.1
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Ethical and Unethical Charismatic Leaders
Use power to dominate others
Exercising Power
Sole provider of vision
Creating the vision
Communicating with followers
Engage in one-way communication, not open to
input from others
Accepting feedback
Prefer yes-men, punish candid feedback
Dont want followers to think, prefer uncritical
acceptance of own ideas
Stimulating followers
Developing followers
Insensitive to followers needs
Living by moral standards
Follow standards only if they satisfy immediate
self interests
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Reducing Risks of Unethical Charismatics

• Have a clearly written code of conduct
• Recruit, select, and promote managers with high
  ethical standards
• Train leaders how to value, seek, and used
  diverse points of view
• Celebrate and reward those who exhibit ethical
  behaviors

6.1
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Transformational Leadership

• Generates awareness and acceptance of groups
  purpose and mission
• Gets followers to accomplish more than they
  intended or thought possible

6.2
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Components of Transformational Leadership

• Charisma or idealized influence
• Inspirational motivation
• Intellectual stimulation
• Individualized consideration

6.2
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The Mindset of a Growth Leader
Beyond the Book

• Growth leaders are people within a company who
  generate organic growth and create value for
  customers, sometimes in spite of formal company
  leadership.
• Growth leaders tend to view life as a journey.
  They not only embrace change but seek
  opportunities for it.
• They tend to see customers as people, manage risk
  by taking action, and place small bets quickly.
• Source S. D. Carr, J. M. Liedtka, R. Rosen, and
  R. E. Wiltbank, In Search of Growth Leaders,
  The Wall Street Journal, 7 July 2008, R4.