Download Contingency models of leadership

Chapter 6
Managing leadership
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-1
Learning objectives
After studying the chapter, you should be able to:
• Describe what leadership is, when leaders are
effective and ineffective and the sources of power
that enable managers to be effective leaders
• Identify the traits that show the strongest
relationship to leadership, the behaviours leaders
engage in, and the limitations of the trait and
behaviour models of leadership
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-2
Learning objectives (cont.)
• Explain how contingency models of leadership
enhance our understanding of effective leadership
and management in organisations
• Describe what transformational leadership is, and
explain how managers can engage in it
• Characterise the relationship between gender and
leadership
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-3
Overview
• Leading is one of the four primary management
tasks
• Effective leadership is a key ingredient for success
• Leadership capacity of managers can be improved
• Trait, behaviour, contingency and transformational
models of leadership are aspects to consider
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-4
The nature of leadership
• Leadership
– The process by which a person exerts influence over
others and inspires, motivates and directs their activities to
achieve group or organisational goals
 Effective leadership increases the firm’s ability to meet
new challenges
• Leader
– An individual who is able to exert influence over other
people to help achieve group or organisational goals
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-5
The nature of leadership (cont.)
• Personal leadership style
– The specific ways in which a manager chooses to
influence others shapes the way that manager
approaches the other tasks of management
 Leaders may delegate and support subordinates, while
others are very authoritarian
– The challenge is for managers
at all levels to develop an
effective personal management
style
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-6
Leadership styles across cultures
• Leadership styles may vary among different
countries or cultures
– European managers tend to be more people-oriented
than managers in the United States (US) or Japan
– Japanese managers are group-oriented, while US
managers focus more on profitability
– Australia and Europe have a more individualistic
orientation than Japan
– Time horizons also are affected by cultures, with the US
(and now Australia) more short term and Japanese longer
term
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-7
Sources of managerial power
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-8
Power: the key to leadership
• Legitimate power
– The authority that a manager has by virtue of his or her
position in the firm
 Example: the power to hire or fire employees
• Reward power
– The ability of a manager to give or withhold tangible and
intangible rewards
 Example: awarding pay raises or providing verbal praise for
good performance
– Effective managers use reward power to signal to
employees that they are doing a good job
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-9
Power: the key to leadership
(cont.)
• Coercive power
– The ability of a manager to punish others
 Examples: verbal reprimand, pay cuts, dismissal
 Limited in effectiveness and application; can have
serious negative side effects
• Expert power
– Power that is based on special knowledge, skills and
expertise that the leader possesses
 First-line and middle managers have the most expert
power; most often consists of technical ability
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-10
Power: the key to leadership
(cont.)
• Referent power
– Power that comes from subordinates’ and coworkers’
respect for the personal characteristics of a leader which
earns their respect, loyalty and admiration
– Usually held by and available for use by likable managers
who are concerned about their workers
• Information power
– Similar to expert power, it is based on controlling the
information needed by others in order to reach an
important decision
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-11
Using different power gets
different results
• French & Raven, pioneer power researchers
• Suggested that use of power from different sources
produces different outcomes
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-12
Empowerment: an ingredient in
modern management
• Empowerment
– The process of giving workers at all levels more authority
to make decisions and the responsibility for their
outcomes
– Helps managers
 get workers involved in the decisions
 increase worker commitment and motivation
 have time to focus on other issues
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-13
Leadership models
• Trait model
– Attempted to identify personal characteristics that
cause effective leadership
 Research shows that certain personal characteristics
do appear to be connected to effective leadership
 Many ‘traits’ are the result of skills and knowledge and
effective leaders do not necessarily possess all of
these traits
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-14
Leadership models (cont.)
• Behavioural model
– Identifies the two basic types of behaviour that many
leaders engaged in to influence their subordinates
 Consideration: employee-centred leadership
behaviour indicating that a manager trusts, respects
and cares about subordinates
 Initiating structure: job-oriented leadership behaviour
that managers engage in to ensure that work gets
done, subordinates perform their jobs acceptably and
the organisation is efficient and effective
– Both behaviours are independent; managers can be high
or low on both behaviours
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-15
Contingency models of leadership
• Fiedler’s model
– Effective leadership is contingent on both the
characteristics of the leader and of the situation
– Leader style is the enduring, characteristic approach to
leadership that a manager uses and does not readily
change
 Relationship-oriented style: leaders concerned with
developing good relations with their subordinates and
to be liked by them
 Task-oriented style: leaders whose primary concern is
to ensure that subordinates perform at a high level so
the job gets done
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-16
Fiedler’s model
• Situation characteristics
– How favourable a situation is for leading to occur
– Leader–member relations: determines how much workers
like and trust their leader
– Task structure: the extent to which workers’ tasks are
clear-cut; clear issues make a situation favourable for
leadership
– Position power: the amount of legitimate, reward and
coercive power leaders have due to their position; when
positional power is strong, leadership opportunity
becomes more favourable
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-17
Fiedler’s contingency theory of
leadership
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-18
Fiedler’s model in application
• Combines considerations of leader–member
relations, task structure and position power to identify
leadership situations
– Identifies situations where given types of managers might
perform best
– Leader style is a characteristic managers cannot change;
managers will be most effective when
 they are placed in situations that suit their leader style
 the situation can be changed to fit the manager’s
leader style
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-19
House’s path–goal theory
A contingency model of leadership proposing that
effective leaders can motivate subordinates by
1. clearly identifying the outcomes workers are trying to
obtain from their jobs
2. rewarding workers for high performance and goal
attainment with the outcomes they desire
3. clarifying the paths to the attainment of the goals,
removing obstacles to performance and expressing
confidence in the ability of workers
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-20
Motivating with path-goal
Path-Goal identifies four leadership behaviours
1. Directive behaviours: set goals, assign tasks, show how
to do things
2. Supportive behaviour: look out for the worker’s best
interest
3. Participative behaviour: give subordinates a say in
matters that affect them
4. Achievement-oriented behaviour: setting very
challenging goals, believing in worker’s abilities
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-21
Motivating with path–goal
(cont.)
• Which behaviour to use depends on the nature of
the subordinates and the tasks
• It is contingent on the nature of subordinates and
the kind of work they do
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-22
Comparing contingency models
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-23
Transformational leadership
• Leadership that
– makes subordinates aware of the importance of their
jobs and performance to the organisation by providing
feedback to the worker
– makes subordinates aware of their own needs for
personal growth and development
– motivates workers to work for the good of the
organisation, not just themselves
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-24
Charismatic leaders
• Enthusiastic, self-confident, transformational leaders
able to clearly communicate their vision of how good
things could be by
– being excited and clearly communicating excitement to
subordinates
– openly sharing information with employees so that
everyone is aware of problems and the need for change
– empowering workers to help with solutions
– engaging in the development of employees by working
hard to help them build skills
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-25
Transactional leadership
• Transactional leaders
– Use their reward and coercive powers to encourage
high performance—they exchange rewards for
performance and punish failure
– Push subordinates to change but do not seem to
change themselves
– Do not have the ‘vision’ of the transformational leader
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-26
Intellectual stimulation
• Behaviour a leader engages in to make followers
aware of problems and get them to view these
problems in new ways, consistent with the leader’s
vision
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-27
Developmental consideration
• Behaviour a leader engages in to support and
encourage followers and help them develop and
grow on the job
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-28
Gender and leadership
• The number of women managers is rising but
seriously under-represented in senior levels
• Stereotypes suggest women are supportive and
concerned with interpersonal relations
• Similarly, men are seen as task-focused
– Research indicates that actually there is no genderbased difference in leadership effectiveness
– Women are seen to be more participative than men
because they adopt the participative approach to
overcome subordinate resistance to them as managers
and they have better interpersonal skills
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-29
Emotional intelligence and
leadership
• The moods of leaders
– Affect their behaviour and effectiveness as leaders
– Affect the performance of their subordinates
• Emotional Intelligence (EI)
– Helps leaders develop a vision for their firm
– Helps motivate subordinates to commit to the vision
– Energises subordinates to work to achieve the vision
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-30
Summary
• Leadership is a process of influence that inspires,
motivates and directs activities to achieve goals
• Leaders have five types of power available to them
• Managers use empowerment as a tool to increase
effectiveness
• Trait model describes personal characteristics
contributing to effective leadership
• Behaviour model describes two leader behaviours:
consideration and initiating structure
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-31
Summary (cont.)
• Fiedler’s contingency model helps explain why leaders
can be effective or ineffective in different situations
• House’s path–goal theory describes how goal setting is
motivatory
• Transformational leadership inspires and energises
subordinates
• Transformational leaders may become charismatic
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Contemporary Management by Waddell, Devine, Jones & George
By John Dugas
6-32