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CHAPTER 13

Leading in a
Dynamic Environment

Pamela S. Lewis
Stephen H. Goodman
Patricia M. Fandt
Copyright 2004 by South-Western, a division of Thomson Learning.
All rights reserved.

Slides Prepared by
Zulema Seguel

Learning Objectives

slide 1 of 2

1. Define leadership and explain its significance


to an organization.
2. Differentiate between the different leadercentered approaches to leadership.
3. Describe the various types of power leaders
use.
4. Explain what is meant by self-leadership and
why it is important to the organization.
5. Characterize how leadership substitutes work.
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36

Learning Objectives

slide 2 of 2

6. Identify and define the variables in the


situational leadership model.
7. Clarify how empowerment can increase the
power and autonomy of organizational
members.
8. Explain transformational leadership.
9. Discuss the changing role of women as
leaders.

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36

The Significance of Leadership


Leadership is a social influence process.
Leadership isnt a position, title, or privilege, it
is a responsibility and a process.
Leadership is an observable, understandable,
learnable set of skills and practices available to
everyone, anywhere in the organization.
Leadership is the indirect ability to influence
people by inspiring them to pursue goals for the
benefit of the organization.
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Leadership and Vision


Leadership involves:
Creating a vision of the future.
Devising strategy for achieve
that vision.
Communicating the vision so that everyone
understands and believes in it.

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Leader-Centered Approaches
Leader-centered approaches focus on
traits, leader behaviors, and power.
They include:
Trait focus
Behavior focus
Power focus
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36

Trait Focus Approach


The trait focus approach assumes that some
people are endowed with certain
characteristics making them effective
leaders.
Physical characteristics (such as height and
appearance)
Personality (such as self-esteem, dominance
and emotional stability)
Aptitudes (general intelligence, verbal
fluency and creativity)
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36

Traits of Successful Leaders


Drive
Achievement, sense of responsibility, ambition,
energy, tenacity and initiative.

Motivation
Especially power.

Honesty and integrity


Self confidence
Persuasive, diplomatic and socially skilled.

Conceptual ability
Business knowledge
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36

Leader-Centered Approaches
Leader-centered approaches focus on
traits, leader behaviors, and power.
They include:
Trait focus
Behavior focus
Power focus
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36

Behavior Focus
Examines what effective leaders do rather than
what effective leaders are.
Behavioral models define a leaders effectiveness
based on two orientations:
Task orientation: Setting performance goals,
planning and scheduling work, coordinating
activities, giving directions, setting standards,
providing resources, and supervising performance.
Relations orientation: Behavior that shows
empathy for concerns and feelings, supportive of
needs, showing trust, and similar attributes.
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Leadership Behaviors
Effective leaders use a range
of behaviors.
These behaviors can be
learned.
An important characteristic
of effective leaders is their
ability change and adapt to
organizational settings in
which they manage.
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Leader-Centered Approaches
Leader-centered approaches focus on
traits, leader behaviors, and power.
They include:
Trait focus
Behavior focus
Power focus
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Power Focus
Power
The ability to use human, informational, or
material resources to get something done.
The ability to get results.

Authority
The officially sanctioned right to get
something done.

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Two Categories of Power


Position power
Power derived from the opportunities
inherent in a persons position in an
organization.

Personal power
Power derived from the interpersonal
relationships between leaders and followers.

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Position Power
Legitimate power
Stems from formal authority.

Coercive power
The power to discipline, punish
and withhold rewards.

Reward power
Control over tangible benefits such as a promotion,
a better job, a better work schedule, a larger
operating budget, and increased expense account.

Information power
Control over information.

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Personal Power
Expert power
The power influence another person because
of expert knowledge and competence.

Referent power
The ability to influence others based on
personal liking, charisma and reputation.

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Power Orientation
Personalized Power Orientation
Associated with a strong need for
esteem and status; power is often
used impulsively.

Socialized Power Orientation


The use of power for the benefit
of others to make subordinates
feel strong and responsible.

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17 36

Follower-Centered Approaches
Leader-centered approaches are used to
identify traits of behaviors leaders use to be
effective but is focused only on the leader in
isolation.
Self-leadership focus: Sometimes referred
to as followership, is a paradigm founded on
creating an organization of leaders who are
ready to lead themselves.
Leadership substitutes: Variables such as
individual, task and organizational
characteristics.
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Characteristics of Self-Leaders

slide 1 of 2

The capacity to motivate themselves and stay


focused on tasks.
Integrity that demands both loyalty to the
organization and the willingness to act according
to beliefs.
Understanding of the organization and their
contributions to it.
Willingness to take the initiative to deal with
problems.
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Characteristics of Self-Leaders

slide 2 of 2

Versatility, skillfulness and flexibility to adapt to


a changing environment.
Responsibility for their careers, actions and
development.

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Leadership Substitutes
Variables such as individual, task, and
organizational characteristics that tend to
outweigh the leaders ability to affect
subordinate satisfaction and performance.
These are known as neutralizers.
A neutralizers is a condition that counteracts
leader behavior and/or prevents the leader
from having an effect on a follower or a
specific situation.
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21 36

Leadership Substitutes
Individual
Characteristics
Experience
Training
Ability
Professional
orientation
Indifference to
organizational
rewards

Task
Characteristics

Organizational
Characteristics

Degree of intrinsic
satisfaction
Degree of
repetitiveness
Degree of structure
or feedback

Degree of formality

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Degree of flexibility
Amount of
cohesiveness
Independence of
reward structure
Degree of spatial
distance from
manager

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Interactive Approaches
Another method of examining leadership
effectiveness is to look at how leaders
interact with their followers.
The three approaches covered:
Situational leadership model
Empowerment
Transformational leadership

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23 36

Situational Leadership Model

slide 1 or 2

Examines the interaction between leadership


behavior, the situation, and the followers
readiness.
Readiness: The extent to which a subordinate
possesses the ability and willingness to complete
a specific task.
Task behavior: The extent to which a leader
organizes and defines the role of followers by
explaining what each person must do and when,
where, and how tasks are to be accomplished.
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24 36

Situational Leadership Model

slide 2 or 2

Four styles of leadership behavior:


Telling style: The leader provides specific
instructions and closely supervises performance.
Selling style: The leader explains decisions and
provides opportunities for clarification.
Participating style: The leader shares ideas and
maintains two-way communication to encourage
and support the skills subordinates have
developed.
Delegating style: The leader provides
subordinates with few task or relations behaviors.
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Empowerment
The interaction of the leader
giving away or sharing power
with those who use it to become
involved and committed to
independent, high-quality
performance.
Successful empowerment means
that everyone has been
convinced that he or she makes a
difference to the success of the
organization.
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Transformational Leadership
A leaders ability to influence employees to
achieve more than was originally expected, or
thought possible.
Transformational leaders are able to generate
feelings of trust, admiration, loyalty and respect
from followers.
There are four primary dimensions:

Idealized influence
Inspirational motivation
Intellectual stimulation
Individualized considerations

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Primary Dimensions
of Transformational Leadership
Dimension

Leaders Behavior

Acts as mentor
Individual
Is attentive to
Consideration achievement and
growth needs
Intellectual
Stimulation

slide 1 of 2

Followers Behavior
Is motivated
Feels valued

Promotes innovation Is encouraged to be


and creativity
novel and try new
approaches
Reframes problems

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28 36

Primary Dimensions
of Transformational Leadership

slide 2 of 2

Dimension

Leaders Behavior

Followers Behavior

Inspirational
Motivation

Provides meaning
and challenge
through pro-social,
collective action.

Is motivated by team
spirit
Enthusiastic
Optimistic

Idealized
Influence

Shares risks
Is considerate of
others over own
needs
Is ethical and moral

Shows admiration
Respect
Trust

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A New Model of Leadership


The Three Cs Model
Competence
Character
Community

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Competence
Leaders need to have knowledge about how
organizations work.
They need to know how to develop a vision and
mission that not only is correct for the industry but
one that also is inspiring to the people in the
organization.
They need to know how to analyze financial
statements and how to make sure the organization
does achieve its strategy.
Leaders need to know how to interact with people.
They need to know how to communicate well and
understand what influences people.
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Character
Character refers to the leadership values
and behaviors that are essential for an
organization to achieve its mission.
Trust
Commitment
Followership

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Community
The result of competency and character will be a
vibrant, healthy community within the
organization
The concept of community applied outside of
the organization will build strong positive ties
between the organization and its external
community.
Customers
Employees
Overall healthy economic conditions
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Women as Leaders
The number of women in
leadership positions has
increased steadily since 1970.
Women are 51 percent of the
population but occupy only
slightly over 25 percent of the
supervisory positions in U.S.
industry.
Women occupy just 11 percent
of senior executive positions in
Fortune 500 companies.
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Implications for Leaders:


Leadership Effectiveness

slide 1 of 2

Know yourself.
Be a role model.
Learn to communicate with your ears open and
your mouth shut.
Know your team and be a team player.
Be honest with yourself as well as to others.
Do not avoid risks.
Believe in yourself.
Take the offense rather than the defense.
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Implications for Leaders:


Leadership Effectiveness

slide 2 of 2

Know the ways of disagreement and the means


of compromise.
Be a good follower.

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