Chapter 9 Business Leadership (Leadership)

Leadership

Process of inspiring others to work hard to accomplish important tasks

What is a contemporary leadership challenge related to time frames?

Shorter time frames for accomplishing things

What is an expectation for success in contemporary leadership?

Expectations for success on the first attempt

What type of problems do contemporary leaders face?

Complex, ambiguous, and multidimensional problems

What is a contemporary leadership challenge regarding time perspective?

Taking a long-term view while meeting short-term demands

Power

- Ability to get someone else to do something you want done or make things happen in the way you want

What are the two sources of managerial power

position power and personal power

Position Power

Based on a manager's official status in the organization's hierarchy of authority

Sources of position power

- Reward power
- Coercive power
- Legitimate power
- Personal power

What is reward power?

Capable of offering something of value.

What is coercive power?

Capable of delivering punishment or withholding positive outcomes.

What is legitimate power?

Organizational position or status confers the right to control those in subordinate positions.

What is Personal Power?

Based on the unique personal qualities that a person brings to a leadership situation

Sources of personal power

- Expert power
- Referent power

What is Expert power?

Capacity to influence others because of one's knowledge and skills

What is Referent power?

Capacity to influence others because they admire you and want to identify positively with you

What is Relational power?

Power gained from the types of networks to which an individual belongs

Vision

A future that one hopes to create or achieve in order to improve upon the present state of affairs

Visionary Leadership

A leader who brings a clear and compelling sense of the future to any situation, as well as an understanding of the actions needed to get there successfully

Meeting the challenges of visionary leadership

-Challenge the process
-Show enthusiasm
-Help others to act
-Set the example
-Celebrate achievements

What is a key commitment of servant leadership?

Commitment to serving others

In servant leadership, who is considered more important?

Followers are more important than the leader

How is servant leadership characterized in terms of focus?

"Other centered" not "self-centered"

How is power viewed in servant leadership?

Power is not a "zero-sum" quantity

What does servant leadership focus on instead of power?

Focuses on empowerment, not power

Servant Leadership and Empowerment

Effective leaders empower others

What is Empowerment?

The way in which managers are enable and help others to gain power and achieve influence

What do effective leaders who empower others provide them with?

- Info
- Responsibility
- Authority
- Trust

Leadership Traits

- Drive
- Self-confidence
- Creativity
- Cognitive ability
- Business knowledge
- Motivation
- Flexibility
- Honesty and Integrity

What do leadership behaviour theories focus on?

How leaders behave when working with followers

What are leadership styles?

Recurring patterns of behaviours exhibited by leaders

What are the basic dimensions of leadership behaviours?

Concern for the task to be accomplished and concern for the people doing the work

Two dimensions of Leadership

Task Concerns, People concerns

What are Task Concerns:

- Plans and defines work to be done
- Assigns task responsibilities
- Sets clear work standards
- Urge task completion
- Monitors performance results

What are People Concerns:

- Acts warm and supportive toward followers
- Develops social rapport with followers
- Respects the feelings of followers
- Is sensitive to follower's needs
- Shows trust in followers

What is the Team Management style in the Blake and Mouton Leadership Grid?

High task concern; high people concern

What is the Authority-Obedience Management style in the Blake and Mouton Leadership Grid?

High task concern; low people concern

What is the Country Club Management style in the Blake and Mouton Leadership Grid?

High people concern; low task concern

What is the Impoverished Management style in the Blake and Mouton Leadership Grid?

Low task concern; low people concern

What is the Middle of the Road Management style in the Blake and Mouton Leadership Grid?

Non-committal for both task concern and people concern

Classical leadership styles

- Autocratic style
- Human relations style
- Laissez-faire style
- Democratic style

Autocratic style

Emphasizes work over people, keeps authority and information within the leader's tight control, and acts in a unilateral command-and-control fashion

Human relations style

Emphasizes people over work

Laissez-faire style

Shows little concern for task at hand, lets the group make decisions, and acts with a "do the best you can and don't bother me" attitude

Democratic style

Committed to tasks and people, getting things done while sharing information, encouraging participation in decision-making, and helping people develop skills and competencies

Fiedler's Contingency Model

Good leadership depends on a match between leadership and situational demands

Determining leadership style

- Low LPC: task-motivated leaders
- High LPC: relationship-motivated leaders

What are the three factors used to diagnose situational control in Fiedler's contingency model?

Quality of leader-member relations (good or poor), degree of task structure (high or low) , amount of position power (strong or weak)

In Fiedler's contingency model, in which situations are task-oriented leaders most successful?

Very favourable (high control) situations and very unfavourable (low control) situations

In Fiedler's contingency model, in which situations are relationship-oriented leaders most successful?

Situations of moderate control

The Hersey-Blanchard situational leadership model

Leaders adjust their styles depending on the readiness of their followers to perform in a given situation

Readiness

how able, willing and confident followers are in performing tasks

What is the delegating leadership style in the Hersey-Blanchard model?

Low-task, low-relationship style; works best in high readiness situations.

What is the participating leadership style in the Hersey-Blanchard model?

Low-task, high-relationship style; works best in low- to moderate-readiness situations.

What is the selling leadership style in the Hersey-Blanchard model?

High-task, high-relationship style; works best in moderate- to high-readiness situations.

What is the telling leadership style in the Hersey-Blanchard model?

High-task, low-relationship style; works best in low-readiness situations.

What does House's path-goal leadership theory focus on?

Effective leadership deals with the paths through which followers can achieve goals

Leadership styles for dealing with path-goal relationships

- Directive leadership
- Supportive leadership
- Achievement-oriented leadership
- Participative leadership

Directive leadership

- Communicate expectations
- Give directions
- Schedule work
- Maintain performance standards
- Clarify leader's role

Supportive leadership

- Make work pleasant
- Treat group members as equals
- Be friendly and approachable
- Show concern for subordinates' well being

Achievement-oriented leadership

- Set challenging goals
- Expect high performance levels
- Emphasize continuous improvement
- Display confidence in meeting high standards

Participative leadership

- Involve subordinates in decision making
- Consult with subordinates
- Ask for subordinate's suggestions
- Use subordinate's suggestions

When to use directive leadership

When job assignments are ambiguous

When to use supportive leadership

When worker self-confidence is low

When to use participative leadership

When performance incentives are poor

When to use achievement-oriented leadership

when task challenge is insufficient

What does Leader Member Exchange Theory (LMX) suggest about leader treatment of individuals?

Not all people are treated the same by leaders in leadership situations.

What is meant by 'In groups' in Leader Member Exchange Theory?

High LMX

What is meant by 'Out groups' in Leader Member Exchange Theory?

Low LMX

High LMX relationship

- favourable personality
- competency
- compatibility

Low LMX relationship

- unfavourable personality
- low competency
- low compatibility

What does the Vroom-Jago leader-participation theory help leaders with?

It helps leaders choose the method of decision making that best fits the nature of the problem situation.

What are the basic decision-making choices in the Vroom-Jago leader-participation theory?

Authority decision, Consultative decision, Group decision.

The Vroom-Jago leader-participation theory scale

<- Leader - Who has info and espertise? - Followers ->
<- No - Acceptance and commitment critical for implementation? -
<- High - Time pressure for decision making? - Low ->
Legend / Key:
<- Authority decisions - Consultative decisions - Group decisions ->

DECISION-MAKING OPTIONS IN THE VROOM-JAGO LEADER-PARTICIPATION THEORY

- Decide alone
- Consult individually
- Consult with group
- Facilitate
- Delegate

Contingency factors in the Vroom-Jago leader-participation theory - Decision Quality:

Who has the information needed for problem solving?

Contingency factors in the Vroom-Jago leader-participation theory - Decision acceptance:

What is the importance of subordinate acceptance to eventual implementation?

Contingency factors in the Vroom-Jago leader-participation theory - Decision Time

Is there enough time available to make and implement the decision?

WHAT ARE THE CONTINGENCY APPROACHES TO LEADERSHIP?

a leader should use authority-oriented decision methods when - they have greater expertise to solve a problem
- are confident and capable of acting alone
- when others are likely to accept and implement the decision - - when there is little or no time available for discussion

According to Vroom-Jago leader-participation theory, a leader should use group-oriented and participative decision methods when:

- leader lacks info to solve problem by themselves
- problem is unclear and clarification is needed
- acceptance of decision and commitment by others is necessary
- adequate time is available

Benefits of participative decision methods

- Help improve decision quality
- Help improve decision acceptance
- Helps develop leadership potential

Potential disadvantages of participative decision methods

- Lost efficiency
- Not particularly useful when problems must be solved immediately

Superleaders

Persons whose vision and strength of personality have an extraordinary impact on others

Charismatic leaders

Develop special leader-follower relationships and inspire others in extraordinary ways

Transactional leadership:

Someone who directs the efforts of others through tasks, rewards, and structures

Transformational leadership:

Someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments

Characteristics of transformational leaders:

- Vision
- Charisma
- Symbolism
- Empowerment
- Intellectual Stimulation
- Integrity

What type of leadership do women tend to use?

Interactive leadership

interactive leadership

- Interactive leadership provides a good fit with the demands of a diverse workforce and the new workplace
- Shares qualities of a diverse workforce and the new workplace

What type of leadership do men tend to use?

Transactional leadership

Future leadership success will depend on a person's capacity to

- Be open
- Have positive relationships
- Be supportive
- Be empowering

Moral Leadership

- ethical leadership
- long term, sustainable leadership requires ethics
- integrity (honesty, credibility, consistency)

- Leaders have a moral obligation to

build performance capacities by awakening people's potential

Authentic leadership activates performance through

the positive psychological states of confidence, hope, optimism, and resilience

Authentic leadership helps in

clearly framing and responding to moral dilemmas, and serving as an ethical role model

Drucker's "Old-fashioned" Leadership

Leadership is more than charisma; it is "good old-fashioned" hard work

Essentials of "old-fashioned" leadership

- Defining and establishing a sense of mission
- Accepting leadership as a "responsibility" rather than a rank
- Earning and keeping the trust of others