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Not as highly developed as leadership theories . Transformational Leader Brings about innovation and change . Inspire

Newer Leadership Concepts. Not as highly developed as leadership theories . Transformational Leader Brings about innovation and change . Inspires followers to work toward a vision . Traditional theories viewed as emphasizing Transactional leadership. Transformational Leadership.

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Not as highly developed as leadership theories . Transformational Leader Brings about innovation and change . Inspire

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  1. Newer Leadership Concepts Not as highly developed as leadership theories. • Transformational Leader • Brings about innovation and change. • Inspires followers to work toward a vision. • Traditional theories viewed as emphasizing Transactional leadership.

  2. Transformational Leadership • Compared to Transactional • Higher productivity • Higher employee satisfaction • Less employee stress • Lower turnover • Best leaders both Transformational and Transactional (provide order, consistency, attention to detail).

  3. Charismatic Leader • Leader whose personality motivates subordinates to achieve the leader’s vision. • Charismatic Leader may or may not be successful in bringing about change, but a Transformational leader is likely to be charismatic.

  4. Kinds of Charismatic Leaders • Unethical Charismatics • motivated by self-interest • control and manipulate followers • Ethical Charismatics • concerned with the interests of the group • recognize others’ contributions

  5. Substitutes for Leadership • “Substitutes” accomplish by other means what leaders do Formalization Highly structured tasks Automatic feedback Intrinsic satisfaction Training/experience Professionalism Group cohesiveness

  6. Yes People Effective Followers High Sheep Alienated Followers Low Lo TYPES OF FOLLOWERS Employee Activity/ Initiative Survivors High Employee Critical Thinking

  7. How can you improve leadership? • Change your leadership style • How much you guide followers in the task • How much challenge you provide • How much you effort you put into building relationships • How much you permit followers to participate • Use Reward Power effectively • Increase Referent (Charisma) and Expert Power • Develop a Vision of the future and inspire followers

  8. Organizational Structure • Division of Labor (Differentiation) • Coordination (Integration)

  9. Differentiation and Integration • Lawrence and Lorsch • Differentiation (Division of Labor) • The more complex the environment, the more differentiation needed • Integration (Coordination) • The more differentiation, the more difficult integration is • Superior integration correlates with economic success

  10. Integrating Involves: VERTICAL STRUCTURE Coordination from Top to Bottom HORIZONTAL STRUCTURE Departmentalization (to divide labor and coordinate across functions)

  11. Vertical Structure Decisions Chain of Command Number ofLevels in Hierarchy Span of Management (Control)

  12. Mechanistic Organic • High formalization • Narrow span of mgmt. • High centralization • Low formalization • Wide span of mgmt. • Low centralization Mechanistic vs. Organic Structures

  13. Mechanistic vs. Organic Structures • Burns and Stalker • FROM most Mechanistic TO most Organic: • Textile Mill • Electrical Engineering Firm • Radio and Television Manufacturing • Electronics Development • The more unstable the environment the more organic (flexible) the organization’s structure should be.

  14. Departmentalization Types Who works together? • Internal Operations Oriented • Functional • Output Oriented • Divisional • Product • Geographic • Customer / Market • Team • Combinations • Hybrid (different types at different places in an org.) • Matrix (different types simultaneously at the same places in an org.)

  15. Internal Ops. Orient. Advantages: Efficient use of resources Economies of Scale In-depth skill specialization Output Orientation Advantages: Quicker changes in an unstable environment More in touch with customers Internal Operations vs. Output Orientation

  16. Departmentalization by Customer

  17. Engineering Manager Marketing Manager Software Manager Matrix Structure Employees are assigned to a specific project team and have a permanent functional unit President Project A Manager Project B Manager Project C Manager

  18. Matrix Structure - Why? • To get the advantages of two structures (e.g., Functional for high specialization and Product for decentralized decision making) • Often used with sophisticated technology, fast-changing environment • Geographic and Product often combined in Multi-national firms

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