Download Leader Effectiveness

Management &
Organisational
Behaviour 2e
Chapter 14
Leadership
©The McGraw-Hill Companies, 2005
Learning Outcomes
After studying this chapter, students will be
able to:
• Distinguish between the art of
leadership and the practice of
management.
• Understand the role of personality traits
in leadership.
• Contrast group-centred leadership
theories based on cognitive styles and
observable behaviours.
• Apply emotional intelligence when
1
McGraw-Hill Companies, 2005
choosing appropriate leader©Thestyles.
Learning Outcomes (cont.)
•
•
•
Explain why most current theories of
leadership are based on situational
contingencies.
Diagnose when transformational and
transactional leadership are appropriate.
Show why leadership is not necessary
for all organisational circumstances.
2
©The McGraw-Hill Companies, 2005
Leadership is both a process and
a set of characteristic behaviours
• Process – use of non-coercive influence to
direct and energize others to behaviourally
commit to the leader’s goals.
• Characteristic Behaviours – the creation of
vision and goals and the motivating of others
to obtain voluntary commitment.
3
©The McGraw-Hill Companies, 2005
Managers versus Leaders
•
•
•
•
•
Managers have authority to be in charge.
Leaders influence others to follow.
Managers do things right.
Leaders do the right things.
Managing means to bring about, to
accomplish, to have responsibility for, to
conduct.
• Leading is influencing, guiding in
direction, course, action, opinion.
4
©The McGraw-Hill Companies, 2005
Exhibit 14-1: Kotter’s Distinction
Between Managers and Leaders
3 Basic
Tasks
Managers
Leaders
Coping with complexity
Coping with change
Deciding
what needs
to be done
Planning and budgeting
(deductively producing
orderly results)
Setting a direction
(inductively creating a vision
and strategies to provide
focus for planning)
Creating
networks
and
relationships
Organising and staffing
(structuring jobs and
reporting relationships to
efficiently implement plans)
Aligning people to the vision
(emphasising communication,
credibility, and
Empowerment)
Ensuring
people do
the job
Controlling and problem
solving (comparing behavior
with plan, taking action to
correct deviations)
Motivating people (creating
Involvement, emphasising
values, building informal
networks of relationships)
5
Trait Approach
Focused on identifying characteristics
or traits that distinguish leaders from
followers. Examples:
•
•
•
•
Business knowledge
Self-confidence
Intelligence
Credibility (honesty, competence,
forward-looking, inspirational)
• Desire to lead
• Drive
6
©The McGraw-Hill Companies, 2005
Exhibit 14-2:
Traits that Distinguish Leaders
•
•
•
•
•
•
Drive
Leadership motivation
Honesty and integrity
Self-confidence
Cognitive ability
Knowledge of the business
7
©The McGraw-Hill Companies, 2005
Leader Behaviours
Low Consideration
Behaviour
High Consideration
Behaviour
Low Initiating
Structure Behaviour
High Initiating
Structure Behaviour
8
©The McGraw-Hill Companies, 2005
Showing Consideration
Leader Behaviours and Decision
Styles
High
Human
Relations
Democratic
Laissezfaire
Autocratic
Low
Low
High
Initiating Structure
9
©The McGraw-Hill Companies, 2005
Blake & Mouton’s Leadership Grid
Blake & Mouton’s Leadership Grid
High
Concern for people
Country Club
Management
1,9
Low
Team
Management
9,9
Middle-of-the-Road
Management
5,5
Impoverished
Management
1,1
0
Low
1
2
3
Authority
Compliance
9,1
4
5
6
7
8
Concern for production
9
High
©The McGraw-Hill Companies, 2005
Contingency Approaches
• Examines the impact of the leader’s
style and the situation on desired
outcomes.
• All contingency theories define:
– Leader’s behaviour or style
– The situation
– Outcome(s)
11
©The McGraw-Hill Companies, 2005
Four-Factor Model
Leader Style
Motives/concerns
Knowledge/beliefs
Personality
Perceptions
Affects Perceptions
of
Situational Variables
Tasks/strategies
Technology/time
Organisation/Policies
People (followers)
Leader Behaviour
Task structuring
Showing Consideration
Decision Making
Using Power
Restricts Choices
About
Influence
Creates Pressures
for
Influence
Followers’ Behaviour
Acceptance/rejection
Productive/unproductive
Development/decline
Satisfaction/
dissatisfaction
Influence
12
©The McGraw-Hill Companies, 2005
Fiedler Contingency Theory of
Leadership Effectiveness
Premise: There must be a match
between the leader’s style and the
demands of the situation for the leader
to be effective.
13
©The McGraw-Hill Companies, 2005
Fiedler Contingency Theory of
Leadership Effectiveness (cont.)
Assumption: Leadership style does
not change. If a mismatch occurs
between style and the situation,
change the situation.
14
©The McGraw-Hill Companies, 2005
Fiedler Contingency Theory of
Leadership Effectiveness (cont.)
Leadership is defined by the primary
source of motivation for the leader as
determined by responses to a survey
called the Least Preferred Co-worker
Scale (LPC):
15
©The McGraw-Hill Companies, 2005
Fiedler Contingency Theory of
Leadership Effectiveness
(cont.)
Relationship-motivated leader (high LPC)
– Task-motivated leader (low LPC)
– Independence motivated leader
(middle LPC)
16
©The McGraw-Hill Companies, 2005
Situation defined in terms of
three variables
1: Leader-Member Relations
2: Subordinate Task Structure
3: Position Power
17
©The McGraw-Hill Companies, 2005
Leader-Member Relations
• Acceptance of leader by subordinates
• Acceptance of leader by peers
• Support from superiors
18
©The McGraw-Hill Companies, 2005
Subordinate Task Structure
• Is the goal of the task clearly stated or
known?
• Is there only one way to accomplish the task?
• Is there only one correct answer or solution?
• Is it easy to check whether the job was done
right?
• Leader experience increases task structure.
19
©The McGraw-Hill Companies, 2005
Position Power
The extent to which the leader
possesses reward, punishment, and/or
legitimate power.
20
©The McGraw-Hill Companies, 2005
Leader Effectiveness
• Leader Effectiveness –
performance of the group in relation
to other similar groups.
• Occurs if there is a match between
the leader’s style and the situational
determinants, the leader will be
effective.
21
©The McGraw-Hill Companies, 2005
Hersey & Blanchard’s Situational
Leadership Theory
• Premise: The leader should assess
follower needs and adapt the style to
those needs.
• Assumption: Leaders are
diagnosticians and are capable of
changing their style.
22
©The McGraw-Hill Companies, 2005
Situational Leadership Model
(High)
High Task and
High Relationship
RELATIONSHIP BEHAVIOR
High Relationship
and Low Task
Low Relationship
and Low Task
High Task and
Low Relationship
(Low)
(Low)
Able and
Willing
(Low)
TASK BEHAVIOR
Able but
Unwilling
Unable but
Willing
Follower Readiness
23
(High)
Unable and
Unwilling
(High)
©The McGraw-Hill Companies, 2005
Path-Goal Theory
• Premise: The leader’s responsibility is
to clarify the path that subordinates
need to take to obtain work-related
goals.
• Assumption: Leaders can change
styles and are astute in assessing
situational contingencies.
24
©The McGraw-Hill Companies, 2005
Leader Styles in Path-Goal
Theory
• Leadership is defined in terms of four
styles that emerge from two broad
categories of leader behaviour:
• Instrumental (task-oriented) and
• Supportive (people/feelings oriented)
behaviours.
25
©The McGraw-Hill Companies, 2005
Leader Styles in Path-Goal
Theory (cont.)
– Directive - gives directions
– Supportive - shows concern
– Achievement - emphasises
excellence
– Participative - involves subordinates
26
©The McGraw-Hill Companies, 2005
Situational Variables in
Path Goal Theory
• Subordinate Attributes:
– Authoritarianism
– Internal-external orientation
– Ability
• Work-Setting Attributes:
– Task
– Formal authority system
– Primary work group
27
©The McGraw-Hill Companies, 2005
Effective Leadership Style
Outcomes in Path Goal Theory
•Job Satisfaction
•Acceptance of Leader
•Motivational Behaviour
Desired outcomes can be obtained if the
leader correctly matches style with the
situation.
28
©The McGraw-Hill Companies, 2005
Emotional Intelligence and
Leadership Styles
•
•
•
•
•
•
Coercive leaders
Authoritative leaders
Affiliative leaders
Democratic leaders
Pacesetting leaders
Coaching leaders
29
©The McGraw-Hill Companies, 2005
Transformational Leadership
Premise: Implementing organisational
change is the major challenge that
present and future leaders face in the
rapidly changing global business
environment.
30
©The McGraw-Hill Companies, 2005
Transformational Leadership
Process
• Broadens and elevates the interests of
their employees.
• Generates awareness and acceptance
of the purposes and mission of the
group.
• Stirs employees to look beyond their
own self-interest for the good of the
group.
31
©The McGraw-Hill Companies, 2005
Transformational Leader
Strategies
– Creates and articulates a vision
– Mobilise commitment
– Institutionalise change
32
©The McGraw-Hill Companies, 2005
How Leaders Get Extraordinary
Things Done
•
•
•
•
•
They
They
They
They
They
challenge the process.
inspire a shared vision.
enable others to act.
model the way.
encourage the heart.
33
©The McGraw-Hill Companies, 2005
Three Substitutes for
Leadership
• Individual job expertise.
• Intrinsic task satisfaction.
• Formalised rules and procedures.
34
©The McGraw-Hill Companies, 2005
Summary
• Managers carry out a broader set of functions than
do leaders. Managers focus on using their authority
to cope with complexity, see that things are done
right, and assure resources are used efficiently.
• Leaders emphasise change and continuous
improvement, and they seek to visualise the right
thing to do by questioning practices and
possibilities.
• Leaders seek to influence followers so they will
want to work toward the leader’s goals. Leaders
also appear to have certain traits in common that
help others to have confidence in their credibility, a
phenomenon explained by social-cognitive theory.
35
©The McGraw-Hill Companies, 2005
Summary
continued 1
• Several streams of research have focused
on the leader’s style or behaviour as he or
she interacts directly with the group to be
influenced.
• Because predictions of effectiveness based
solely on the leader’s behaviour or style
have generated inconsistent results, most
contemporary models incorporate one or
more situational variables. These are called
contingency theories.
36
©The McGraw-Hill Companies, 2005
Summary
continued 2
• Fiedler equates effectiveness to task versus
relationship styles in combination with three
contingency variables.
• Hersey and Blanchard pay attention to how
the leader’s task and/or relationship
behaviours are adapted to followers’ job
maturity competencies.
• House and Mitchell view the leader’s
behaviour as clarifying goals and showing
the path to them.
37
©The McGraw-Hill Companies, 2005
Summary
continued 2
• Vroom and Yetton consider leadership effectiveness
options by working through a decision tree of group
and situational factors.
• A different form of leadership is necessary at the
level of the larger organisation, where the leader
acts as a visionary pathfinder and a transformer of
organisational strategies and practices. At this level,
leaders must learn the skills of creating a vision,
mobilising commitment, and institutionalising
change. They get extraordinary things done by
being dedicated to continuous improvement and
enabling others to act.
38
©The McGraw-Hill Companies, 2005
Summary
continued 3
• Some research suggests that there are times when
leadership is not necessary or may even get in the
way. There are even conditions that may be
substitutes for leadership.
• Women and ethnic minorities face the dilemma that
while they have more obstacles to overcome to
break into responsible leadership positions, many
who do succeed find the experience less than
fulfilling. They choose to downsize the complexities
in their lives by breaking away from big
organisations to follow other more personal
pursuits.
39
©The McGraw-Hill Companies, 2005