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Chapter 8. Leadership. Michael A. Hitt C. Chet Miller Adrienne Colella. Knowledge Objectives. Define leadership and distinguish between formal and informal leaders. Explain the trait concept of leadership.

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leadership

Chapter 8

Leadership

Michael A. Hitt

C. Chet Miller

Adrienne Colella

knowledge objectives
Knowledge Objectives
  • Define leadership and distinguish between formal and informal leaders.
  • Explain the trait concept of leadership.
  • Describe major behavioral theories of leadership and their similarities and differences.
  • Understand contingency theories of leadership and how they relate leadership effectiveness to situational factors.
knowledge objectives3
Knowledge Objectives
  • Describe the differences between transactional and transformational leaders.
  • Discuss what factors can act as substitutes for leadership and why.
  • Compare how men and women lead and discuss possible reasons for any similarities or differences between their leadership styles.
  • Explain the similarities and differences in effective leadership styles across various clusters of countries.
the nature of leadership
The Nature of Leadership
  • The process of providing direction and influencing individuals or groups to achieve goals
  • Effective leaders are concerned with doing the “right things”
    • Create and communicate a vision of what the organization should be
    • Communicate with and gain the support of multiple constituencies
    • Persist in the desired direction even under bad conditions
    • Create the appropriate culture and to obtain the desired results
trait theories of leadership

Exhibit 8-1

Common Traits Associated with Leadership

Trait Theories of Leadership

Energy Insightfulness

Appearance Integrity

Intelligence Persistence

Judgment Self-confidence

Verbal fluency Sense of humor

Achievement drive Tolerance for stress

Adaptability Interpersonal skills

Aggressiveness Prestige

Enthusiasm Socioeconomic position

Extroversion Tact

Initiative

Adapted from Exhibit 8-1: Common Traits Associated with Leadership

six core traits of leadership
Six Core Traits of Leadership
  • Drive
    • Ambition
    • Achievement motivation
    • Persistence
    • Tenacity
    • Initiative
  • Leadership motivation
    • Desire to lead, influence others, assume responsibility, and gain power
      • Socialized power motive
      • Personalized power motive
six core traits of leadership7
Six Core Traits of Leadership
  • Honesty and integrity
    • Truthful
    • Maintain consistency between what they say and what they do
  • Self-confidence
    • Confident in their actions and show that confidence to others
    • Learn from their mistakes
    • React positively to stress
    • Even-tempered
    • Display appropriate emotions
six core traits of leadership8
Six Core Traits of Leadership
  • Cognitive ability
    • High degree of intelligence
      • Process complex information
      • Deal with changing environments
  • Knowledge of business
    • Knowledge of business in which they are engaged
      • Make better decisions
      • Anticipate future problems
      • Understand implications of their actions
behavioral theories of leadership
Behavioral Theories of Leadership
  • University of Michigan studies
    • Job-centered leadership style
      • A leadership behavioral style that emphasizes employee tasks and the methods used to accomplish them
    • Employee-centered leadership style
      • A leadership behavioral style that emphasizes employees’ personal needs and the development of interpersonal relationships
behavioral theories of leadership10
Behavioral Theories of Leadership

Job-Centered Style

Employee-Centered Style

High

A

D

Consideration

B

C

Low

Low

High

Initiating Structure

Adapted from Exhibit 8-2: Comparison of Employee-Centered and Job-Centered Concepts with Consideration and Initiating Structure

behavioral theories of leadership11
Behavioral Theories of Leadership
  • Ohio State University studies
    • Consideration
      • A leadership behavioral style demonstrated by leaders who express friendship, develop mutual trust and respect, and have strong interpersonal relationships with subordinates
    • Initiating structure
      • A leadership behavioral style demonstrated by leaders who establish well-defined interpersonal relationships with patterns of organization and communication, define procedures, and delineate their relationships with subordinates
behavioral theories of leadership12
Behavioral Theories of Leadership
  • The Managerial Grid
    • Concern for people
      • One of the two dimensions of leadership behavior of the managerial grid; similar to the behavioral styles of consideration and employee-centered leadership
    • Concern for production
      • One of the two dimensions of leadership behavior of the managerial grid; similar to the behavioral styles of initiating structure and job-centered leadership
the managerial grid

High Concern

Concern for People

The “Best” Leadership style

Low Concern

Low Concern

High Concern

Concern for Production

The Managerial Grid

9

8

7

6

5

4

3

2

1

8, 7 style

2, 6 style

4,3 style

1 2 3 4 5 6 7 8 9

Adapted from Exhibit 8-3: Blake and Mouton’s Managerial Grid

contingency theories of leadership
Contingency Theories of Leadership
  • Fiedler’s contingency theory of leadership effectiveness
    • Leader effectiveness depends on the interaction of
      • Leader’s behavioral style
      • Favorableness of the leadership situation
    • Leader style measured by the LPC (least preferred coworker) scale
    • Situational favorableness assessed by three factors
fiedler s contingency theory of leadership effectiveness

___:___:___:___:___:___:___:___

Cooperative

Uncooperative

8 7 6 5 4 3 2 1

___:___:___:___:___:___:___:___

Friendly

Unfriendly

8 7 6 5 4 3 2 1

Fiedler’s Contingency Theory of Leadership Effectiveness
  • Leader style
    • Esteem for the Least Preferred Co-worker (Bipolar adjectives scale)
  • Low LPC score
    • Negative adjectives
    • Task-oriented leader (task achievement needs first)
  • High LPC score
    • More positive adjectives
    • Relationship-oriented leader (interpersonal relationship needs first)
fiedler s contingency theory of leadership effectiveness16
Fiedler’s Contingency Theory of Leadership Effectiveness
  • Situation favorableness measured by three situational characteristics
    • Leader-member relations
      • Amount of respect subordinates have for the leader
    • Task structure
      • Degree to which tasks are simplified and easy for followers to understand
    • Position power
      • Degree to which the leader can reward, punish, promote or demote employees in the group
fiedler s contingency theory of leadership effectiveness17
Fiedler’s Contingency Theory of Leadership Effectiveness

Adapted from Exhibit 8-4: Fiedler’s Contingency Model of Leadership Effectiveness

path goal leadership theory
Path-Goal Leadership Theory
  • Leader effectiveness depends on the degree to which a leader can enhance the performance expectancies and valences of her subordinates by:
    • Assigning individuals to tasks for which they have high valences (valence)
    • Supporting employees’ efforts to achieve task goals (effort → performance expectancy)
      • Encouragement
      • Training
      • Technical support
    • Tying extrinsic rewards (pay raise, recognition, promotion) to accomplishment of task goals (performance→reward instrumentality)
path goal leadership theory19
Path-Goal Leadership Theory
  • Leader behaviors
    • Directive leadership
    • Supportive leadership
    • Achievement-oriented leadership
    • Participative leadership
    • Upward-influencing leadership
  • Situational factors
    • Subordinates’ characteristics
    • Characteristics of the work environment
leader behavior and situations
Leader Behavior and Situations

Situational Factors

Effective Leader Behaviors

Subordinate Characteristics

Characteristics of the Work Environment

High need for affiliation

Supportive

High need for security

Directive

Internal locus of control

Participative

External locus of control

Directive

Structured task

Directive

Unstructured task

Supportive

Complex task

Participative/ Achievement oriented

High growth need strength

Adapted from Exhibit 8-5: Interaction of Leader Behavior and Situational Factors

leader behavior and situations21
Leader Behavior and Situations

Situational Factors

Effective Leader Behaviors

Subordinate Characteristics

Characteristics of the Work Environment

Low growth need strength

Complex task

Directive

High growth need strength

Simple task

Supportive

Low growth need strength

Simple task

Supportive

Low willingness to leave, less anxiety, and high satisfaction

High role clarity and low role conflict

Upward influencing and contingent

Adapted from Exhibit 8-5: Interaction of Leader Behavior and Situational Factors

transactional leadership
Transactional Leadership
  • Transactional leaders
    • Display active management-by-exception behavior
    • Display contingent reward behavior
      • Understand what followers want to receive from their work, and attempt to give them what they desire, contingent on performance
      • Clarify links between performance and reward
      • Exchange rewards and promises of rewards for specified performance levels
      • Respond to the interests of followers only if the followers are performing satisfactorily
transformational leadership
Transformational Leadership
  • Transformational leaders
    • Motivate followers to
      • Do more than expected (organizational vision and outcomes)
      • Continuously develop and grow
      • Increase their level of self-confidence
      • Place the interests of the team or organization before their own
    • Display charisma
    • Intellectually stimulate their subordinates
    • Provide individual consideration of subordinates
transformational leadership24

Intellectual stimulation

Transformational Leader

Charisma

  • Articulate clear and appealing vision
  • Communicate the vision
  • Delegate significant authority and responsibility
  • Eliminate unnecessary bureaucratic restraints
  • Promote cooperation and teamwork
  • Encourage open sharing of ideas and concerns
  • Encourage participative decision making
  • Provide coaching, training and other developmental experiences
  • Modify structure to promote key values and objectives

Individual consideration

Transformational Leadership

Leader Behaviors

Leader Behaviors

substitutes for leadership

Substitutes for Leadership

Characteristics of Associates

Task Characteristics

Organizational Characteristics

Substitutes for Leadership

High in competitiveness

High in need for independence

Professional orientation

Routineness

Feedback

Intrinsic satisfaction

  • Highly formalized
    • Rules
    • Norms
    • Policies
  • Group cohesion
gender effects on leadership
Gender Effects on Leadership
  • Do women lead differently than men?
    • Structural-cultural model of leader behavior
      • Often experience lack of power, lack of respect, and stereotypic expectations
      • Thus will develop leadership styles different from those of men
    • Socialization model
      • All have been selected and socialized by the same organization
      • Thus, men and women will display similar leadership styles
    • Both women and men may be effective leaders when style matches the situation
global differences in leadership
Global Differences in Leadership
  • Anglo cluster (ideal leader)
    • Charismatic influence and inspiration, encouraging participation
    • Diplomatic, delegating authority, allowing everyone to have their say
  • Arabic cluster (ideal leader)
    • Need to balance paradoxical set of expectations
      • Expected not to differentiate themselves from others and have modest styles
      • Expected to have great deal of power and control, and to direct most decisions and actions
global differences in leadership28
Global Differences in Leadership
  • Germanic cluster (ideal leader)
    • Charismatic
    • Highly team-oriented
    • Participative
  • Southern Asia cluster (ideal leader)
    • Humane, participative, and charismatic
    • Expected to be benevolent while maintaining a strong position of authority