Leadership

1. Leadership � of all businesses fail in first two years 60-75% of Americans say worst thing about work is their boss!

2. Changing Views of Leadership in Business Scientific Management/Theory X: people are lazy, stupid, and dislike work. Workers are extensions of the machines that they are operating. Bureaucracy. Human Relations Approach/Theory Y: regards employee needs as a legitimate corporate responsibility. People are industrious and seek challenges. Democratic style of organization.

3. Trait Theories of Leadership Original explanations of leadership Most often believed by royalty, elite classes, and older siblings Years of research � inconclusive results Bird found four general traits (intelligence, initiative, sense of humor, extraversion) But, these traits don�t ensure a good leader

4. Two Frequently Studied Traits Charisma: inspire followers to be passionately devoted to them Extraordinary vision Persuasive speakers Practical leadership skills (alleviates stress of followers) Machiavellianism Believe that people are weak, gullible, and untrustworthy People are there to be used and manipulated No emotional, moral or ideological attachments Sane

5. Social Determinism The �great� leader only plays a unique and decisive role when the historical situation permits major alternative paths of development In other words, leaders simply play out roles designed for them by broad social forces

6. Modern Theories of Leadership Focus on interaction of Traits and behaviors of leaders Characteristics of their followers Nature of the situation

7. Contingency Theory Created by Fred Fiedler Leader effectiveness determined by interaction of leader characteristics and aspects of the situation Person-oriented Leader: more effective in moderately favorable situations Task-oriented Leader: more effective in extremely favorable or unfavorable situations

8. Cognitive Resource Theory Fiedler�s expansion of Contingency Theory Interaction of leader�s cognitive abilities (e.g., intelligence, job-related knowledge), job performance, and stress Must keep stress at a minimum for leader to be successful

9. Path Goal Theory Focuses on kinds of behaviors leaders should use to allow their subordinates to achieve personal and organizational goals. Directive Leadership Supportive Leadership Participative Leadership: workers have input Achievement Oriented: set challenging goals and emphasize high level of performance Requires a flexible leader

10. Normative Decision Theory Concerned with extent to which leaders allow subordinates to participate in decisions Ranges from autocratic to complete participation Factors to consider include Importance of decision Degree to which it is accepted by subordinates Time required to make the decision

11. Leader Member Exchange Deals with the way the leader-follower relationship effects the leadership process. Every follower is different Ingroup vs. Outgroup subordinates Supervision/formal authority vs. leadership/persuasion Get leader to like you treats you better You work harder

12. Leadership Styles Authoritarian vs. Democratic 60% of workers prefer democratic styles However, job performance only increased in 22% of studies (56% showed no difference) Transactional: behavior depends on what followers think of them. Bribery. Transformational: Challenge and inspire workers High Energy, willing to risk Individualized consideration Intellectual stimulation

13. The Role of Power Types of Power Reward: pay raises, promotions Coercive: punishment (downsize, demote) Legitimate: hierarchy of control (formal structure) Referent: degree to which employees identify with leader and leader�s goals Expert: does leader have necessary skills? If yes, more supportive subordinates

14. Examples of Influence Tactics Rational Persuasion Inspirational Appeals Consultation: seeks target participation Ingratiation Personal Appeals: loyalty and friendship Exchange Coalition Tactics Legitimating Tactics: based upon hierarchical authority or organizational policy Pressure: threats and persistent reminders

15. Effects of Power Legitimate, referent, and expert: correlate with job satisfaction, satisfaction with superior�s technical skills, satisfaction with superior�s human relations skills, organizational commitment Reward: correlates with all but organizational commitment

16. Need for Power? High level executives and mid-level managers often have a high need for power Effective managers have a higher need for power than less effective managers However, power is not for personal gain

17. Role of Leader Expectations Pygmalion Effect: positive self-fulfilling prophecy Golem Effect: negative self-fulfilling prophecy

18. Women in Management Female managers have risen from 24% to 40%. But, only 5% of women employed outside the home hold senior management positions 74 cents to the $ Glass ceiling Leadership and gender stereotypes: women use more transformational leadership Attributions for success