Chapter One

The Nature and Importance of Leadership

The Meaning of Leadership

Leadership is the ability to inspire confidence and support among the people who are needed to achieve organizational goals

Leadership Defined
Interpersonal influence directed through communication toward goal attainment An act that causes others to act or respond in a shared direction The principle dynamic force that motivates and coordinates the organization in the accomplishment of its objectives A willingness to take blame (as defined by legendary
football quarterback Joe Montana)

Leadership as a Partnership

Leadership is regarded as a long-term relationship, or partnership, where the leader and the group members are connected in such a way that the power between them is balanced

Four Things Are Needed

Exchange of purpose A right to say no Joint accountability Absolute honesty

Management
Management is more formal and scientific than leadership Management relies on universal skills Management is a set of explicit tools and techniques Management is based on reasoning and testing Management involves the functional or administrative aspects of planning, organizing, directing, and controlling

Leadership
Leadership deals with the interpersonal aspects of a managers job Leadership involves having a vision of what an organization can become Leadership requires eliciting cooperation and teamwork Leadership produces change, often to a dramatic degree A leader creates a vision to direct the organization

Leader
Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Independent Shares Knowledge

Manager
Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberative Authoritative Stabilizing Centralizes knowledge

Leadership Matters
The results of one study showed
transactional leadership was not significantly related to performance charismatic leadership was slightly, positively related to performance in an uncertain environment, charismatic leadership was more strongly related to performance

The Impact of Leadership

Leadership does make a difference
Research from Michael Maccoby Southwest Airlines Studies of senior managers Attribution theory the process of attributing causality to events

The Impact of Leadership

Formal leadership does not make a difference
Leadership has a smaller impact on outcomes than do forces in the situation There are three major arguments against the importance of leadership
substitutes for leadership leadership irrelevance complexity theory

Substitutes for Leadership

Closely knit teams of highly trained individuals Intrinsic satisfaction Computer technology Professional norms

Substitutes for leadership and leadership function

Leader Irrelevance
Factors outside the leaders control have a larger impact on business than do leadership actions Leaders have unilateral control over a only a few resources Firms choose leaders whose values are compatible with those of the firm

Complexity Theory
Holds that organizations are complex systems that cannot be explained by the usual rules of nature Leaders and managers can do little to change the course of the system Managers cannot predict which business strategies or product mixes will survive Managers can only scramble or innovate in order to adapt to outside forces

Leadership Roles
Research has identified nine roles that can be classified as part of the leadership function of management:
Figurehead Spokesperson Negotiator Entrepreneur Technical Problem Solver Team Builder Team Player Coach Strategic Planner

Satisfactions of Leaders
A feeling of power and prestige A chance to help others grow and develop High income Respect and status A feeling of being in on things An opportunity to control money and other resources

Dissatisfactions and Frustrations of Leaders

Too much uncompensated overtime Too many headaches Not enough authority Loneliness Too many problems involving people Too much organizational politics The pursuit of conflicting goals

A Framework for Understanding Leadership

The leadership framework can be expressed in terms of a simple formula:

L = f (l, gm, s)
The formula shows that the leadership process is a function of the leader, group members, and other situational variables

SOURCE: Managing Today! by Stephen P. Robbins, 1997 Reprinted by permission of Prentice-Hall, Inc., Upper Saddle River, N.J.

Leadership Effectiveness
Leadership effectiveness refers to attaining desirable outcomes such as productivity, quality, and satisfaction in a given situation Whether or not the leader is effective depends on four sets of variables

Skill Development in Leadership

Leadership skills are in high demand Leadership skills are listed as the top attributes executives are seeking in candidates for management jobs Developing leadership skills is more complex than developing structured skills and can be acquired, using a general learning model

Essential Qualities of Effective Followers

Self-management Commitment Competence and focus Courage

Chapter Two
Traits, Motives, and Characteristics of Leaders

Universal Theory of Leadership

Certain leadership traits are universally important; that is, they apply in all situations

Leadership Characteristics Categories

Personality traits Motives Cognitive factors

Personality Traits of Effective Leaders

General personality traits Task-related personality traits

Strengths and Limitations of the Trait Approach

STRENGHTS Leaders possess personal characteristics that differ from non leaders. Concentrate on selecting leaders with certain characteristics. LIMITATIONS Does not tell us which traits are needed in which situation. Do not know how much of a trait is the right amount.

General personality traits

General Personality Traits of Effective Leaders

Task-Related personality traits

Emotional Intelligence
refers to the ability to do such things as understand ones feelings, have empathy for others, and regulate ones emotions to enhance ones quality of life.

Leadership Motives

Cognitive Factors and Leadership

The WICS Model of Leadership in Organizations

This model of leadership encompasses and synthesizes
wisdom intelligence, and creativity

to explain leadership effectiveness

The Influence of Heredity and Environment on Leadership

Does heredity or environment contribute more to leadership effectiveness? Are leaders born or made? Do you have to have the right stuff to be a leader?

Nature versus Nurture

Are leaders born or are they made? Both. Individuals inherit a basic capacity to develop personality traits and mental ability that sets an outer limit on how extensively these traits can be developed Environmental influences, in turn, determine how much of an individuals potential will be developed

Summary
The universal theory of leadership asserts that certain personality traits, leader motives, and cognitive factors contribute to leadership effectiveness Personality traits include both general traits and task-related traits Leaders can often be distinguished by their needs or motives

Summary (contd)
Mental ability is important for leadership success Traits, motives, and characteristics required for leadership are a combination of heredity and environment Traits do appear to distinguish leaders from nonleaders and effective leaders from lesseffective leaders

Chapter Three

Charismatic and Transformational Leadership

Charisma Defined
Charisma has been defined various ways Charisma is a Greek word meaning divinely inspired gift In leadership, charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others

Charisma: A Relationship Between the Leader and Group Members

Key to charismatic leadership is the interaction between leader and group members Charismatic qualities must be attributed to the leader by group members Charismatic leaders use impression management to cultivate their relationships with group members

The Effects of Charisma

Group members
trust the leaders beliefs have beliefs similar to those of the leader accept the leader unquestioningly have affection for the leader willingly obey the leader identify with and attempt to emulate the leader

The Effects of Charisma (contd)

Group members
have emotional involvement in the mission have heightened goals feel that they will be able to accomplish, or to contribute to the accomplishment of the mission

Halperts Dimensions of Charisma

Types of Charismatic Leaders (contd)

Office-holder charismatics attain their charisma from the position they hold Personal charismatics gain esteem from others faith in them as people Divine charismatics are endowed with a gift of divine grace

Characteristics of Charismatic Leaders

Visionary Masterful communication skills Ability to inspire trust Able to make group members feel capable Energy and action orientation Emotional expressiveness and warmth Romanticize risk Unconventional strategies Self-promoting personality Dramatic and unique

Vision in Charismatic Leadership

Vision is the ability to imagine different and better conditions and ways to achieve them A vision is a lofty, long-term goal Charismatic leaders inspire others with their vision

Communication
Management by Inspiration
Using metaphors and analogies to appeal to the intellect, imagination, and values of group members Gearing language to different audiences

Management by Anecdote
Inspiring and instructing team members by telling fascinating stories

Techniques for Developing Charisma

Create visions for others Be enthusiastic, optimistic, and energetic Be sensibly persistent Remember names of people Make an impressive appearance Be candid Display an in-your-face attitude

The Development of Charisma

Developing some of the traits, characteristics, and behaviors of charismatic people, a person can increase his or her charisma, such as: Create visions for others Be enthusiastic Being persistent Remember names of people

Development of Charisma
Make an Impressive Appearance Being candid Display an In-Your-Face Attitude

Transformational Leadership
Investing managers with a sense of urgency Committing to greatness Adopting a long-range perspective and concurrently observing organizational issues from a broad rather than a narrow perspective.

How Transformations Take Place

Attributes of Transformational Leaders

Charismatic Create a vision Encourage the personal development of their staff Provide supportive leadership Practice empowerment Innovative thinking Lead by example

Four qualities of a Transformational Leader

Charismatic Inspirational leadership Intellectual stimulation Individualized consideration

Transformational Leadership
The transformational leader helps bring about major, positive changes Transformational leaders move group members beyond their self-interests for the good of the group, organization, or society

Charismatic and Transformational Leadership

Achieve a comprehensive understanding of the meaning and types of charismatic leaders. Describe many of the traits and behaviors of charismatic leaders. Explain the communication style of charismatic leaders.

Concerns About Charismatic Leadership

According to the concept of leadership polarity, leaders are often either revered or vastly unpopular Charisma may not be necessary for leadership effectiveness Charismatic leadership has a dark side Some charismatic and transformational leaders neglect their social responsibility

Summary
Charisma is a special quality of some leaders that differentiates them from others Charismatic leaders often contribute to group members attributions of their charismatic qualities through impression management The effects of charismatic leadership can be organized into three dimensions: referent power, expert power, and job involvement

Summary (contd)
There are five types of charismatic leaders: socialized, personalized, office-holder, personal, and divine Charismatic and transformational leaders are able to articulate a vision in such a way as to inspire others Charisma can be developed There may be a dark side to charismatic leadership

Chapter Four
Leadership Behaviors, Attitudes, and Styles

Ohio State University Studies

Edwin A. Fleishman

Leader Behavior Description Questionnaire

Identified Two dimensions
Initiating

Structure Consideration

Consideration
Consideration is the degree to which the

leader creates an environment of emotional support, warmth, friendliness, and trust.

Consideration
The leader creates an environment by: Being friendly and approachable Looking out for the personal welfare of the group Keeping the group abreast of new developments Doing small favors for the group

Consideration
Leaders who score high on the

consideration factor are friendly, trustful, earn respect, and have a warm relationship with team members. Leaders with low scores on the consideration factor typically are authoritarian and impersonal in their relationships with group members.

Consideration
Five questionnaire items measuring the

consideration factor are as follows:

Do personal favors for people in the work group. Treat all people in the work group as your equal. Be willing to make changes. Back up what people under you do. Do little things to make it pleasant to be a member of the staff.

Initiating Structure & Consideration

An important output of research on

initiating structure and consideration is to categorize leaders with respect to how much emphasis they place on the two dimensions. The two dimensions are not mutually exclusive. A leader can achieve high or low status on both dimensions.

Initiating Structure
Initiating structure is the degree to

which the leader organizes and defines relationships in the group. Activities include assigning specific tasks, specifying procedures to be followed, scheduling work, and clarifying expectations of team members.

Initiating Structure
Self-assessment items measuring

initiating structure are as follows:

Try out your own new ideas in the work group. Encourage the slow-working people in the group to work harder. Emphasize meeting deadlines. Meet with the group at regularly scheduled times. See to it that people in the work group are working up to capacity.

Initiating Structure
Leaders who score high on the initiating

structure dimension:
Define the relationship between themselves and their staff members. Define the role that they expect each staff member to assume.

Such leaders also endeavor to establish

well-defined channels of communication and ways of getting the job done.

Initiating Structure & Consideration

High
Low Structure High Consideration
High Structure

High Consideration

Low
Low Structure Low Consideration

High
High Structure Low Consideration

Low------------------------------------ High

University of Michigan Studies

Rensis Likert

Contrasted High & Low Producing Units

Two Key Approaches Production Centered Leaders Employee Centered Leaders

Production Centered Leaders

Production-centered leaders set tight work

standards, organized tasks carefully, and prescribed the work methods to be followed. They also closely supervised the work of group members.

Employee Centered Leaders

Employee-centered leaders encouraged

subordinate participation in goal setting and in other work decisions. They also helped to ensure high performance by engendering trust and mutual respect.

Task-Related Attitudes & Behaviors

Adaptability reflects a contingency viewpoint.

A tactic is chosen based on the unique

circumstances at hand. A leader who was responsible for psychologically immature group members would find it necessary to supervise them closely. If the group members were mature and self-reliant, they would require less supervision. Adaptability is a leadership behavior that includes attention to both task and interpersonal factors.

Task-Related Attitudes & Behaviors

Since the function of leadership is to

produce change, the leader must set the direction of that change. Setting the direction goes beyond planning, which is a management process designed to produce orderly results rather than change. Direction setting is part of creating a vision and strategy. The strategy describes a feasible way of achieving the vision.

Task-Related Attitudes & Behaviors

Effective leaders consistently hold group

members to high standards of performance. Setting such standards increases productivity. People tend to live up to the expectations set for them by superiors. This is called the Pygmalion effect, and it works in a subtle, almost unconscious way When a managerial leader believes that a group member will succeed, the manager communicates this belief without realizing it. Conversely, when a leader expects a group member to fail, that person will not disappoint the manager.

An Effective Leader
is one who helps group members attain productivity, including high quality and customer satisfaction.

Task-Related Attitudes & Behaviors

Combined with risk taking, a bias for

action is also an important leadership behavior. To bring about constructive change, the leader must take risks and be willing to implement these risky decisions.

Task-Related Attitudes & Behaviors

The leader who provides hands-on

guidance helps the group accomplish important tasks and, at the same time, group members learn important skills. Too much guidance of this nature, however, can be a symptom of poor delegation and micromanagement.

Task-Related Attitudes & Behaviors

Giving group members frequent feedback

on their performance is another vital leadership behavior. The leader can rarely influence the actions of group members without appropriate performance feedback. Feedback of this nature has two aspects.
Group members are informed how well they are doing so that they can take corrective action if needed. Positive feedback serves as a reinforcer that prompts group members to continue favorable activities.

Task-Related Attitudes & Behaviors

Stability of Performance: Effective leaders are

steady performers, even under heavy workloads and uncertain conditions. Remaining steady under conditions of uncertainty contributes to effectiveness because it helps team members cope with the situation. When the leader remains calm, group members are reassured. Stability is helpful because it helps the managerial leader appear professional and cool under pressure.

Task-Related Attitudes & Behaviors

A tough question is one that makes a

person or group stop and think about why they are doing or not doing something. Group members are forced to think about the effectiveness of their activities. The beauty of a tough question is that it encourages people to ask themselves, Why didn't I think of that? It seems so obvious.

Task-Related Attitudes & Behaviors

A strong customer orientation is natural in a

consumer products business but can be equally important for an industrial company. Effective leaders are strongly interested in satisfying the needs of customers, clients, or constituents. This approach helps inspire employees to satisfy customers.

Relationship-Oriented Attitudes & Behaviors

Alignment and Mobilization of People

Getting people pulling in the same direction and

working together smoothly is more of a communications challenge than a problem of organization design. To get people pulling together, it is necessary to talk to more people than would be required in organizing. Alignment enables people to have a clear sense of direction because they are pursuing a vision.

Relationship-Oriented Attitudes & Behaviors

A new concept of the leader's role, concert

building, involves both aligning and mobilizing. The concert builder functions as an orchestra leader. His or her goal is to produce a system that is self-evaluating, self-correcting, self-renewing, and ongoing. The system can be thought of as a large modern orchestra. Professionals play quite different instruments and perform separate, and often very difficult, tasks. The work of each must be integrated with the work of others to make up the whole.

Relationship-Oriented Attitudes & Behaviors

Inspiration Based on surveys and focus groups, the

Forum Group has identified five inspiring practices:

Promoting the development of people's talents Recognizing the contribution of others Enabling others to feel like leaders Stimulating others' thinking Building enthusiasm about projects and assignments

Being inspired is an emotional process that is

triggered by a variety of behaviors on the part of a leader.

Relationship-Oriented Attitudes & Behaviors

Satisfaction of Human Needs To inspire people, effective leaders motivate

people by satisfying higher-level needs. Motivation and inspiration energize people by satisfying needs for achievement, a sense of belonging, recognition, self-esteem, and a feeling of control over one's life. A strictly managerial rather than leadershipapproach would be to push people in the right direction through control mechanisms. An example would be suspending people who did not achieve work quotas.

Relationship-Oriented Attitudes & Behaviors

A major approach to making meaningful

work for people is to formulate the right vision and strategy. Formulating a vision and strategy helps involve group members in goal accomplishment. Employees can also find meaning in their work if the leader employs a basic tactic such as explaining how a particular job helps the company or society.

Relationship-Oriented Attitudes & Behaviors

Emotional Support & Encouragement

Supportive behavior toward team members

usually increases leadership effectiveness. A supportive leader gives frequent encouragement and praise. One of the many work-related ways of encouraging people is to allow them to participate in decision making. Emotional support generally improves morale and sometimes improves productivity.

Relationship-Oriented Attitudes & Behaviors

Leader's help promote values and principles that

contribute to the welfare of individuals and organizations.

These deal directly with the emotions and

attitudes of people, and indirectly with the task. Steven Covey, who is widely quoted for his uplifting messages, advises that an organization's mission statement must be for all good causes. Leaders who believe in these good causes will then espouse principles and values that lead people toward good deeds in the workplace.

Relationship-Oriented Attitudes & Behaviors

A servant leader serves constituents by

working on their behalf to help them achieve their goals, not the leader's own goals. The idea behind servant leadership, as formulated by Robert K. Greenleaf, is that leadership derives naturally from a commitment to service. Serving others, including employees, customers, and community, is the primary motivation for the servant leader.

Relationship-Oriented Attitudes & Behaviors

A servant

leader is a moral leader.

Place service before self-interest. Listen first to express confidence in others. Inspire trust by being trustworthy. Focus on what is feasible to accomplish. Lend a hand.

360-Degree Feedback
In 360-degree feedback, a formal evaluation

of superiors is based on input from people who work for and with them. Three hundred and sixty-degree feedback is also referred to as multisource feedback or multirater feedback. Three hundred and sixty-degree feedback is more frequently used for leadership and management development than for performance evaluation.

360-Degree Feedback

Leadership Style
The relatively consistent pattern of behavior that characterizes a leader Often based on the dimensions of initiating structure and consideration Examples: Hes a real command-andcontrol type, shes a consensus leader.

Participative Leadership
Participative leaders share decision making with group members (trickle-up leadership) Three subtypes:
Consultative leaders confer with group members Consensus leaders strive for consensus among group members Democratic leaders confer final authority to the group

Leadership Grid Styles

The Leadership Grid is a framework for specifying the extent of a leaders concern for production and people Benchmark Leadership Grid styles include:
Authority-Compliance (9,1) Country Club Management (1,9) Impoverished Management (1,1) Middle-of-the-Road Management (5,5) Team Management (9,9)

The Managerial Grid

1,9 pattern Country club environment 9,9 pattern Team managementthe ideal style

(high)
9

Concern for People

8
7 6 5 5,5 pattern Middle-of-the-road management

4
3 2

1,1 pattern impoverished management

1 (low) 1 2 3 4 5 6 7 8

9,1 pattern Task management

Concern for Production

9 (high)

Entrepreneurial Leadership Characteristics

Strong achievement drive and sensible risktaking High degrees of enthusiasm and creativity Tendency to act quickly when opportunity arises Constant hurry combined with impatience Visionary perspective

Entrepreneurial Leadership Characteristics (contd)

Dislike of hierarchy and bureaucracy Preference for dealing with external customers Eye on the future

Gender Differences in Leadership Style

One researcher concluded that men tended toward a command-and-control style. In contrast, women tended toward a transformational style, relying heavily on interpersonal skills. While researchers found leadership style differences between men and women, on the dimension of overall effectiveness, the sexes were perceived the same.

Chapter Five
Contingency and Situational Leadership

Contingency Approach
Leaders are most effective when they make their behavior contingent on situational forces, including group member characteristics.

Fiedlers Contingency Theory

The best style of leadership is determined by situational factors Leadership style may be relationshipmotivated or task-motivated Leadership style is relatively enduring and difficult to change Leaders should be matched to situations according to their style

Figure 5-1 Summary of Findings From Fiedlers Contingency Theory

Fiedler's Contingency Theory of Leadership Effectiveness

This model holds that the best style of leadership is determined by the situation in which the leader is working. Classifies a manager's leadership style as relationship-motivated, task-motivated, or intermediate style (semi-independent). Once leaders understand their particular leadership style, they should work in situations that match their style.

Measuring Leadership Style: The Least Preferred Coworker Scale

LPC scale measures the degree to which a leader describes favorably or unfavorably their least preferred coworker (could work the least well with).

Self Assessment Quiz 5-1

Measuring Leadership Situation

Theory classifies situations as high, moderate and low control. More control exercised by the leader, the more favorable the situation is for them. Control Classifications: Leader-member relations Task Structure Position Power

The Leader-Match Concept and Overall Findings

The effectiveness of leadership depends on matching leaders to situations in which they can exercise more control. Task-motivated leaders: perform best in situations of high and low control. These leaders perform best in situations highly favorable for exercising control since they can work on relationships and not the task.

The Leader-Match Concept and Overall Findings

Relationship-motivated: perform best in situations of moderate control. They can work well on relationships and not get involved in overmanaging. **Participative Leaders are needed in the presence of a situation with an unclear task, or dealing with unmotivated or an uncooperative group.

Making the Situation More Favorable for the Leader

Implication of theory is that the leader should modify situations to best match their leadership style; increasing their chances of being effective.

Path Goal Theory of Leadership Effectiveness

Developed by House, Robert: specifies what the leader must do to achieve high productivity and morals in a given situation. A leader attempts to clarify the path to a goal for a group member so that they receive personal payoffs. Job satisfaction and performance increase.

Path Goal Theory of Leadership

Characteristics of Group Member
(Contingency Factors)

Leadership Style Directive Supportive Participative Achievement Oriented

Outcomes Productivity Morale

(Contingency Factors)

Demands of the Task

Matching the Leadership Style to the Situation

Leader chooses among four different leadership styles to achieve optimum results in a given situation. Two sets of contingency factors: types of subordinates and type of work they perform.
Leadership Style
Directive Supportive Participative Achievement Oriented

Environmental Factors: factors that are not within the control of group members but that influence satisfaction and task accomplishment.

How The Leader Influences Performance

Recognize or activate group members needs over which the leader has control.
Increase personal payoffs to team members for attaining work goals. Make the path to rewards easier by coaching and providing direction. Help group members clarify expectations of how effort will lead to good performance and how performance leads to rewards.

How The Leader Influences Performance Continued

Reduce frustrating barriers to reaching goals. Dont irritate people by instructing them on things they know. Provide structure if missing and supply rewards contingent on adequate performance.

Increase opportunity for personal satisfaction if group member performs effectively.

The Hersey-Blanchard Situational Leadership Model

The situational leadership model of Paul Hersey and Kenneth H. Blanchard explains how to match the leadership style to the readiness of the group members.

Leadership style classified according to amount task and relationship behavior the leader engages in.

Situational Leadership II (SLII) Developed by Kenneth H. Blanchard and others

Explains how to match leadership style to the capabilities of group members on a given task SLII is designed to increase the frequency and quality of conversations about performance and professional development between managers and group members so that competence is developed, commitment takes place, and turnover among talented workers is reduced

Basics Of The Model

Task behavior is the extent in which the leader spells out the duties and responsibilities of an individual or group; includes giving directions and setting goals.

Relationship behavior is the extent to which the leader engages in two-way or multiway communication.

Style 1
High task and low relationship
The "telling" style is very directive because the leader produces a lot of input but a minimum amount of relationship behavior. An autocratic leader would fit here.

Style 2- High Task and High Relationship

The "selling" style is very directive, but in a more persuasive, guiding manner.

The leader provides considerable input about task accomplishment but also emphasizes human relations.

Style 3- High Relationship and Low Task

In the "participating" leadership style, there is less direction and more collaboration between leader and group members. The consultative and consensus subtypes of participative leader generally fit into this quadrant.

Style 4- Low Relationship, Low Task

In the "delegating" leadership style, the leader delegates responsibility for a task to a group member and is simply kept informed of progress. If carried to an extreme, this style would be classified as free-rein.

Hersey and Blanchards Situational Leadership Theory

Leader: decreasing need for support and supervision

Situational Leadership Theory

Readiness of Followers
Unable and Unwilling

Behavior of Leaders
Clear, Specific Directions High Task Orientation

Unable and Willing

Able and Unwilling Able and Willing
Prentice Hall, 2001 Chapter 11

Support & Participation

Let Followers Perform
135

High
Relationship Behavior (amount of support required)

Participating Supporting
Able/Unwilling

Selling Coaching
Unable/Willing

Delegating
Able/Willing

Telling Directing
Unable/Unwilling

Low Low (able to do job) High (unable to do job)

Task Behavior (amount of guidance required)

High S3 Share Ideas and Facilitate in Decision Making: Participating

High Relationship, Low Task
Relationship

S2
Explain decisions and provide opportunity for clarification: Selling
High Relationship, High Task Low Relationship, High Task

Low Relationship,Low Task

Behavior

Turn over responsibility for decisions and implementation: Delegating

Provide specific instructions and closely supervise performance: Telling

S4
Low

S1
Task Behavior High

Follower Readiness

High

Moderate
R2 Unable but willing

Low
R1 Unable and unwilling

R4 R3 Able Able but and unwilling Willing Follower Directed

Leader Directed

High

Leadership Guidelines

R3 Relationship-Low Task: Able but Unwilling

Relationship Behavior High Relationship, Low task Low Relationship,Low Task

R2 RelationshipSelling: Unable but Willing

High Relationship, High Task
Low Relationship, High Task

R4 Delegating Able and R1 Directive-autocratic: Willing Unable and Unwilling

Low

Task Behavior

High

Evaluation of Situational Model

Builds on other explanations of leadership that emphasize the role of task and relationship behaviors. Utilizes common sense and is intuitively appealing. In reality, leadership situations are less clear than 4 quadrants. Research evidence is mixed; model may hold for only certain types of employees.

Normative Decision Model

Published by Vroom, Yetton, and Jago in 1973 and 1988. Views leadership as a decision making process and specifies type of leadership for a given situation.

Normative Decision Model

Proper decision making style is determined using a decision tree analysis. Styles determined from analysis are: Autocratic I,II (decision by leader alone or with some info from group) Consultative I,II (decision by leader with input from one member or all members) Group II (group makes decision)

Normative Decision Model

Decision tree nodes prompt the following questions, in the order given: Is it an important decision (quality)? Is group commitment important? Do I have enough information? Is the problem structured (well-defined)? Can I make the decision alone and get buy-in? Does the group share same goals (goal congruence? Is group member conflict an issue? Does the group have enough info to make a decision?

Cognitive Resource Model

Published in 1987 by Fred Fiedler and Joseph Garcia. Theory relating stress and leaders intelligence/experience.

Cognitive Resource Model

Leader experience more important in high stress situation. Low-stress situation: intelligence and innovation are more valuable trait in leaders. Intellectual leaders more effective if directive. And the obvious: Complex problems best suited for intellectual leaders.

Research: How Top Level Executives Lead

Farkas, Backer, and Wetlaufer published in 1996.
Interviewed 163 top executives worldwide; 12,000 pgs. of interviews.

Research: How Top Level Executives Lead

Conclusion: CEOs usually utilize all approaches, however usually have one dominant approach. Situation determines best approach.

Crisis Leadership Attributes

Be decisive Lead with compassion Reestablish the usual work routine Avoid a circle-the-wagons mentality Display optimism Be a transformational leader

Summary
Hersey-Blanchard: Practical in that group members are diagnosed prior to choosing best style. Relatively easy concepts to interpret and use (leader behavior and follower readiness). Best choice of five!

Chapter Six
Leadership Ethics and Social Responsibility

Ethics and Morals

Ethics is the study of moral obligations, or of separating right from wrong Ethics can also mean the accepted guidelines of behavior for groups or institutions Morals are an individuals determination of what is right or wrong and are influenced by an individuals values

Ethical Leadership Behaviors

1. Be honest and trustworthy and have integrity in dealing with others 2. Pay attention to all stakeholders 3. Build community 4. Respect the individual 5. Accomplish silent victories

Factors Contributing to Ethical Differences

Leaders level of greed, gluttony, and avarice Leaders level of moral development
Preconventional level Conventional level Postconventional level

Sense of entitlement Situation Character

Evaluating Ethics of a Decision Guidelines

Is it right? Is it fair? Who gets hurt? Would you be comfortable if the details of your decision or actions were made public? What would you tell your child, sibling, or young relatives to do? How does it smell?

Examples of Unethical Leaders (From Table 6-2)

Frank P. Quattrone, former investment banker at CSFB Sanjay Kumar, former CEO of Computer Associates International, Inc. Jeffrey Greenberg, CEO of Marsh & McClellan Companies Kenneth Lay, former chairman and CEO of Enron

Social Responsibility
Having obligations to society beyond the companys economic obligations to owners or stockholders and also beyond those prescribed by law or contract Relates to an organizations impact on society and goes beyond doing what is ethical

Examples of Socially Responsible Actions

Creating a pleasant workplace Guarding the environment Engaging in philanthropy Working with suppliers to improve working conditions

Ethical Guidelines for Political Behavior

Unethical Ethical Question 3 Is the political activity fair and equitable?
Yes Yes

Question 1 Is the action motivated by self-serving interests which exclude the goals of the organization?

Yes

No

No

Unethical Question 2 Does the political action respect individual rights?

No

Unethical

Copyright Houghton Mifflin Company. All rights reserved.Chapter

6160

Creating an Ethical and Socially Responsible Culture

Providing strategic leadership of ethics and social responsibility Establishing written codes of ethical conduct Developing formal mechanisms for dealing with ethical problems Accepting whistleblowers Providing training in ethics and social responsibility Placing company interests over personal interests

Ethics and Performance

High ethics and social responsibility are related to good financial performance The relationship between social responsibility and financial performance may be a virtuous circle. Corporate social responsibility and corporate financial performance may feed and reinforce each other

Summary
Key principles of ethical leadership include having honesty and integrity, paying attention to all stakeholders, building community, respecting the individual, and accomplishing silent victories

Summary (contd)
Three factors responsible for differences in ethics and morality include the leaders level of greed, gluttony, and avarice, the leaders level of moral development, and the situation

Summary (contd)
A leader or manager should seek answers to a series of important questions before reaching a decision about an issue that is not clearly ethical or unethical Unethical behaviors have had detrimental effects on many companies

Summary (contd)
A leader can encourage ethical behavior by promoting social responsibility Ethical behavior is related to financial performance

Chapter Seven

Power, Politics, and Leadership

Power, Empowerment, and Delegation

Power is the potential or ability to influence decisions and control resources.

Four Bases of Position Power

Legitimate power is the lawful right to make a decision and expect compliance Reward power stems from having the authority to give employees rewards for compliance Coercive power is the power to punish for noncompliance Information power stems from formal control over the information people need

Sources of Personal Power

Expert power is the ability to influence others through specialized knowledge, skills, or abilities Referent power is the ability to influence others through desirable traits and characteristics Prestige power is power stemming from ones status and reputation

Sources and Types of Power

Position Power Personal Power Power Stemming from Ownership Power Stemming from Providing Resources Power Derived from Capitalizing on Opportunity Power Stemming from Managing Critical Problems Power Stemming from being close to Power

Ownership Power

A leaders strength of ownership power depends on

how closely the leader is linked to shareholders and board members how much money he or she has invested in the firm

Power From Capitalizing on Opportunity

Power can be derived from being in the right place at the right time and taking the appropriate action It pays to be where the action is.

Power from Being Close to Power

The closer a person is to power, the greater power he or she exerts The higher a unit reports in a firms hierarchy, the more power it possesses

Empowerment refers to passing decisionmaking authority and responsibility from management to group members. Delegation is the assignment of formal authority and responsibility for accomplishing a specific task to another person.

Empowerment
refers to passing decision-making authority and responsibility from managers to group members. Almost any form of participative management, shared decision making, and delegation can be regarded as empowerment.

Effective Empowering Practices

Tactics for becoming an Empowering Leader

Foster Initiative and Responsibility Link work Activities to the Goals of the Organization Provide Ample Information Allow Group Members to Choose Methods Encourage Self-Leadership Implement Team-Based HR Policies Establish Limits to Empowerment Continue to lead.

Guidelines For Effective Delegation

Assign duties to the right people Delegate the whole task Give as much info as needed Retain some important tasks for yourself Obtain feedback Delegate both pleasant and unpleasant tasks Step back from the details Evaluate and reward performance

Contributing Factors to Organizational Politics

Pyramid-shaped Organization Structure Subjective standards of performance Environmental uncertainty and turbulence Emotional insecurities Machiavellian tendencies Disagreements that prevent rational decision making

Ethical Political Tactics and Strategies

Gaining Power Building Relationships for Political Power Avoiding Political Blunders

Power-Gaining Strategies

Develop power contacts Control vital information Stay informed Control lines of communication Bring in outside experts Make a quick showing Remember that everyone expects to be paid back Be the first to accept reasonable changes

Relationship-Building Strategies

Display loyalty Manage your impression Ask satisfied customers to contact your boss Be courteous, pleasant, and positive Ask advice Send thank-you notes to large numbers of people Flatter others sensibly

Potential Political Blunders

Criticizing the boss in a public forum Bypassing the boss Declining an offer from top management Putting your foot in your mouth Not conforming to the company dress code

Unethical Political Tactics and Strategies

Back Stabbing Embrace or Demolish Setting a Person Up for Failure Divide and Rule Playing Territorial Games Creating and Resolving a False Catastrophe

Exercising Control Over Dysfunctional Politics

Be aware of its causes and techniques Avoid favoritism Set good examples at the top of the organization Encourage goal congruence Threaten to discuss questionable information in a public forum Hire people with integrity