12-1

Bateman Snell

Management Competing
in the
New Era

5th
Edition
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-2

Part Four
Chapter 12 - Leadership

Chapter Outline
Vision
Leading and Managing
Leading and Following
Power and Leadership
Traditional Approaches to Understanding
Leadership
Contemporary Perspectives on Leadership
Developing Your Leadership Skills

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Learning Objectives
After studying Chapter 12, you will know:
 what it means to be a leader
 how a good vision helps you be a better leader

 how to understand and use power

 the personal traits and skills of effective leaders

 the behaviors that will make you a better leader

 what it means to be a charismatic and transformational leader

 how to further your own leadership development

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Vision
Vision
a mental image of a possible and desirable future state of the
organization
 having a vision and communicating it to others are essential

components of great leadership

 the best visions are both:

ideal- communicates a standard of excellence and clear choice

of positive values
unique - communicates and inspires pride in being different

from other organizations

 can exist throughout all organizational levels
 visions can be inappropriate
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12-5

Leading And Managing

Abilityto lead effectively sets excellent managers apart
from average ones
 managers deal with ongoing organizational activities
planning and budgeting routines, structuring the organization
 leadership includes orchestrating organizational change
creating a vision for the firm and inspiring people to attain it
 management and leadership are both vitally important
 supervisory leadership - provides guidance, support, and

corrective feedback for day-to-day activities of work unit

members
 strategic leadership - gives purpose and meaning to

organizations
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12-6

Leading And Following

Organizations succeed or fail because of how well
followers follow
 effective followers:
are capable of independent thinking
are actively committed to organizational goals

are enthusiastic about ideas and purposes beyond their own self

interest
master skills that are useful to the organization

hold performance standards that are higher than required

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Power And Leadership

Power
 ability to influence other people
Sources of power
 legitimate power - leader has organizational authority
 reward power - leader has control over valued rewards

 coercive power - leader has control over punishments

 referent power - leader has personal characteristics that

appeal to others and make them desirous of the leader’s

approval
 expert power - leader has knowledge that others feel will be

of benefit to them
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-8

Sources Of Power

Authority

Control over
Expertise
rewards
Power

Appealing Control over

personal punishments
characteristics
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Traditional Approaches To
Understanding Leadership
Leader traits
 traitapproach - focussed on individual leaders to determine
the personal characteristics that great leaders share
 characteristics that distinguish effective leaders

drive - characteristics that reflect a high level of effort

leadership motivation - desire to lead

integrity - actions correspond to words

self-confidence - expectation that one is able to overcome

obstacles and make good decisions in the face of uncertainty

knowledge of the business - ability to interpret information

ability to perceive the needs of others and to adjust one’s

behavior accordingly
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-10

Traditional Approaches To
Understanding Leadership (cont.)
Leader behaviors
 behavioral approach - sought to identify what behaviors
good leaders exhibit
 Task performance - leader’s efforts to ensure that the work

unit reaches its goals

focus on work speed, quality and quantity of output, and rules
 Group
maintenance - ensure the satisfaction of group
members
develop and maintain harmonious work relationships
Leader-Member Exchange (LMX) theory - focuses on the

leader’s behavior toward individuals

 maintenance behaviors
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-11

Traditional Approaches To
Understanding Leadership (cont.)
Leader behaviors (cont.)
 Participation
in decision making - leader behaviors that
managers perform in involving their employees in making
decisions
autocratic leadership - makes decisions and then announces
them to the group
democratic leadership - solicits input from others

 uses consensus or majority vote to make the final choice

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To
Understanding Leadership (cont.)
Leader behaviors (cont.)
 The effects of leader behavior
decision styles - characteristics of the situation, leader, and the
follower determine the appropriate decision-making style
 laissez-faire - leadership philosophy characterized by an absence of
managerial decision making
performance and maintenance behavior - are independent of
each other
 Ohio State studies - grievances and turnover
 were lower when supervisor was high on maintenance behavior

 were higher when supervisor was high on task performance

behavior
 when leader must be high on performance-oriented behavior,

s/he should also be maintenance-oriented

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-13

Traditional Approaches To
Understanding Leadership (cont.)
Leader behaviors (cont.)
 The effects of leader behavior (cont.)
performance and maintenance behavior (cont.)
 Michigan studies - most effective managers were task oriented
 effective managers also were relationship oriented

 taken together, Ohio State and Michigan research suggested that

the ideal leader is always both performance and maintenance

oriented
 Blake and Mouton’s Leadership Grid

 described a wide range of leadership styles

 recommended a 9,9 style that is high on concern for people and

high on concern for production

 ignores the effect of the situation
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-14

The Leadership Grid

Country Club Team

9
High
Management Management

8
Concern for People (1,9) (9,9)
7
6
Middle of the Road
Management
4 5

(5,5)

Impoverished Authority-
3

Management Compliance
1 2

Low (1,1) (9,1)

1 2 3 4 5 6 7 8 9
Low High
Concern for Production
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-15

Traditional Approaches To
Understanding Leadership (cont.)
Situational approaches to leadership
 leadership perspective proposing that universally important
traits and behaviors do not exist, and that effective leadership
behavior varies from situation to situation
requires the leader to first analyze the situation and then decide
what to do
 Tannenbaum and Schmidt - three factors must be considered
 forces in the manager
 forces in the subordinate

 forces in the situation

arguments remain valid today

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Traditional Approaches To
Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
 Vroom-Yetton-Jago model - focuses on how leaders go
about making decisions
seven situational factors used to analyze problems
 each based on a problem attribute
 scored as either high or low

answering a series of questions about the problem attributes

leads one to 14 possible endpoints of the analysis
 each endpoint recommends one of five decision styles
 decision styles indicate that there are several shades of

participation
useof model ensures that important situational factors are
considered
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-17

Vroom’s Situational Factors For

Problem Analysis
DECISION SIGNIFICANCE The significance of the decision to the success
of the project or organization
IMPORTANCE OF The importance of team members’ commitment
COMMITMENT to the decision

LEADER’S EXPERTISE Your knowledge or expertise in relation to this

problem
LIKELIHOOD OF The likelihood that the team would commit itself
COMMITMENT to a decision that you might make on your own

GROUP SUPPORT FOR The degree to which the team supports the
OBJECTIVES organization’s objectives at stake in this problem

GROUP EXPERTISE Team members’ knowledge or expertise in

relation to this problem
TEAM COMPETENCE The ability of team members to work together
in solving problems
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-18

Figure 12.3
The Vroom-Yetton-Jago model
Team
Competence

Group
Expertise

Group
Support

Decision Importance of Leader Likelihood of

Significance Commitment Expertise Commitment
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-19

Figure 12.3
The Vroom-Yetton-Jago model

Instructions: The Matrix operates like a

funnel. You start at the left with a
specific decisions problem in mind. The
column headings denote situational
factors which may or may not be present
in that problem. You progress by
selecting High or Low (H or L) for each
relevant situational factor. Proceed down
from the funnel, judging only those
situational factors for which a judgment is
called for, until you reach the
recommended process.
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-20

Vroom’s Leader Decision Styles

Consult
Decide Individually Consult Group Facilitate Delegate
0 3 5 7 10

Area of freedom
for subordinates

Use of authority
by manager

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-21

Traditional Approaches To
Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
 Path-goal theory - concerns how leaders influence
subordinates’ perceptions of their work goals and the paths
they follow toward attainment of those goals
factors that determine appropriate leader behavior include:
 personal characteristics of the followers
 authoritarianism

 locus of control

 ability

 environmental pressures with which followers must cope

 people’s tasks

 formal authority system of the organization

 primary work group

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-22

Traditional Approaches To
Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
 Path-goal theory (cont.)
four pertinent leadership behaviors
 directive leadership
 supportive leadership

 participative leadership

 achievement-oriented leadership

theory suggests that the leader should:

 make the path to work goals easier to travel by providing coaching
and direction
 reduce frustrating barriers to goal attainment

 increase opportunities for personal satisfaction by increasing

payoffs to people for achieving performance goals

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-23

The Path-Goal Framework

Characteristics
of followers

Appropriateness of
3. Directive,
determine 4. Supportive, leading to Followers’
goals and
5. Participative, or
performance
6. Achievement
leader behaviors

Environmental
factors

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-24

Traditional Approaches To
Understanding Leadership (cont.)
Situational approaches to leadership (cont.)
 Substitutesfor leadership - factors in the workplace that can
exert the same influence on employees that leaders would
provide
certain follower, task, and organizational factors are substitutes
for task performance-oriented and group maintenance-oriented
leader behaviors
practical implication of this idea

 create situations in which substitutes for leadership operate

 leader will require less time in attempts to influence people

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-25

Contemporary Perspectives On
Leadership
Charismatic leadership
 dominant and exceptionally self-confident, and have a strong
conviction in the moral righteousness of their beliefs
 articulates ideological goals

 inspire their followers trust, confidence, acceptance,

obedience, emotional involvement, affection, admiration, and

higher performance

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-26

Contemporary Perspectives On
Leadership (cont.)
Transactional leadership
 traditionalmanagement through business transactions in
which leaders use their legitimate, reward, and coercive
powers to give commands and exchange rewards for services
rendered
 dispassionate leadership that does not inspire people to focus

on the interests of the organization

Transformational leadership
 moves beyond transactional leadership
 a leader who transforms a vision into reality and motivates

people to transcend their personal interests for the good of

the group
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-27

Contemporary Perspectives On
Leadership (cont.)
Transformational leadership (cont.)
 Generating excitement - three ways
they are charismatic
provide individualized attention

they are intellectually stimulating

 Skills and strategies - rely on four

have a vision
communicate their vision

build trust

have a positive self-regard

 Transforming leaders - training available to stimulate

transformational leadership Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-28

Contemporary Perspectives On
Leadership (cont.)
Post-heroic leadership
 even great top executives can’t solve all problems on their
own
 effective leadership must permeate the organization

leader must spread leadership abilities throughout the firm

make heroes out of those who figure out what needs to be done

and then do it
A note on courage
 need courage to:
create and execute a vision
take reasonable risks

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-29

Classic Contingency Models Of

Leadership
Fiedler’s contingency model
 leader effectiveness depends on two factors
the personal style of the leader
 task-motivated - primary emphasis on completing the task
 low Least Preferred Coworker (LPC)

 relationship-motivated - emphasizes maintaining good

interpersonal relationships
 high LPC

degree to which the situation gives the leader power, control,

and influence over the situation
 different situations dictate different leadership styles

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

12-30

Fiedler’s Analysis Of Situations

Leader-
member Good Poor
relations

Task
structure Structured Unstructured Structured Unstructured

Leader
position High Low High Low High Low High Low
power

Favorable Unfavorable
for leader for leader
Most
Relation- Relation- Relation- Relation-
effective Task- Task- Task-
ship- ship- ship- ship-
Task-
motivated motivated motivated motivated
leader motivated motivated motivated motivated
in the
situation Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
12-31

Classic Contingency Models Of

Leadership (cont.)
Hersey and Blanchard’s situational theory
 managershould consider an employee’s psychological and
job maturity
job maturity - level of the follower’s skills and technical
knowledge relative to the task performed
psychological maturity - follower’s self-confidence and self-

respect
 determines
the degree to which task performance or
maintenance behaviors are important
maintenance behaviors are not important with followers of low
or high levels of maturity
performance behaviors important for followers with low

maturity Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.