Fundamental of Management Chap 16

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Management, 10/e
John R. Schermerhorn, Jr.

Chapter 16:
Essentials of Leadership

Prepared by: Jim LoPresti


University of Colorado, Boulder
Published by: John Wiley & Sons, Inc.

Planning Ahead Chapter 16 Study Questions

What is the nature of leadership?


What are the important leadership
traits and behaviors?
What are the contingency
approaches to leadership?
What are some current issues in
leadership development?

Management 10/e - Chapter 16

Study Question 1: What is the nature of leadership?

Leadership.

The process of inspiring others to work hard to


accomplish important tasks.

Contemporary leadership challenges:

Shorter time frames for accomplishing things.


Expectations for success on the first attempt.
Complex, ambiguous, and multidimensional
problems.
Taking a long-term view while meeting shortterm demands.

Management 10/e - Chapter 16

Figure 16.1 Leading viewed in relationship to the


other management functions.

Management 10/e - Chapter 16

Study Question 1: What is the nature of leadership?

Power.

Ability to get someone else to do something


you want done or make things happen the way
you want.

Power should be used to influence and


control others for the common good
rather seeking to exercise control for
personal satisfaction.
Two sources of managerial power:

Position power.
Personal power.
Management 10/e - Chapter 16

Study Question 1: What is the nature of leadership?

Position power.

Based on a managers official status in the


organizations hierarchy of authority.

Sources of position power:

Reward power.
Capability to offer something of value.
Coercive power.
Capability to punish or withhold positive
outcomes.
Legitimate power.
Organizational position or status confers the
right to control those in subordinate positions.
Management 10/e - Chapter 16

Study Question 1: What is the nature of leadership?

Personal power.

Based on the unique personal qualities that a


person brings to the leadership situation.

Sources of personal power:

Expert power.
Capacity to influence others because of ones
knowledge and skills.
Referent power.
Capacity to influence others because they
admire you and want to identify positively
with you.

Management 10/e - Chapter 16

Figure 16.2 Sources of position power and personal


power used by managers.

Management 10/e - Chapter 16

Study Question 1: What is the nature of leadership?

Visionary leadership.
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 to the situation a


clear and compelling sense of the future
as well as an understanding of the actions
needed to get there successfully.

Management 10/e - Chapter 16

Study Question 1: What is the nature of leadership?

Meeting the challenges of visionary


leadership:
Challenge
Show
Help
Set

the process.

enthusiasm.

others to act.

the example.

Celebrate

achievements.

Management 10/e - Chapter 16

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Study Question 1: What is the nature of leadership?

Servant leadership
Commitment
Followers
Other
Power

to serving others.

more important than leader.

centered not self-centered.


not a zero-sum quantity.

Focuses

on empowerment, not power.

Management 10/e - Chapter 16

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Study Question 1: What is the nature of leadership?

Servant Leadership and


empowerment.

Empowerment.
The process through which managers enable
and help others to gain power and achieve
influence.
Effective leaders empower others by providing
them with:
Information.
Responsibility.
Authority.
Trust.
Management 10/e - Chapter 16

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Study Question 2: What are the important leadership


traits and behaviors?

Traits that are important for


leadership success:

Drive
Self-confidence
Creativity
Cognitive ability
Business knowledge
Motivation
Flexibility
Honesty and integrity
Management 10/e - Chapter 16

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Study Question 2: What are the important leadership


traits and behaviors?

Leadership behavior

Leadership behavior theories focus on how


leaders behave when working with followers.

Leadership styles are recurring patterns of


behaviors exhibited by leaders.

Basic dimensions of leadership behaviors:

Concern for the task to be accomplished.

Concern for the people doing the work.

Management 10/e - Chapter 16

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Study Question 2: What are the important leadership


traits and behaviors?

Task concerns

Plans and defines


work to be done.
Assigns task
responsibilities.
Sets clear work
standards.
Urges task
completion.
Monitors
performance
results.

People concerns

Management 10/e - Chapter 16

Acts warm and


supportive toward
followers.
Develops social
rapport with
followers.
Respects the feelings
of followers.
Is sensitive to
followers needs.
Shows trust in
followers.

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Study Question 2: What are the important leadership


traits and behaviors?

Blake and Mouton Leadership Grid

Team management.

Authority-obedience management.

High people concern; low task concern.

Impoverished management.

High task concern; low people concern.

Country club management.

High task concern; high people concern.

Low task concern; low people concern.

Middle of the road management.

Non-committal for both task concern and people


concern.

Management 10/e - Chapter 16

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Figure 16.3 Managerial styles in Blake and Moutons


Leadership Grid.

Management 10/e - Chapter 16

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Study Question 2: What are the important leadership


traits and behaviors?

Classic leadership styles:

Autocratic style.

Laissez-faire style.

Emphasizes task over people, keeps authority and


information within the leaders tight control, and acts in
a unilateral command-and-control fashion.
Shows little concern for task, lets the group make
decisions, and acts with a do the best you can and
dont bother me attitude.

Democratic style.

Committed to task and people, getting things done


while sharing information, encouraging participation in
decision making, and helping people develop skills and
competencies.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Fiedlers Contingency Model.

Good leadership depends on a match between


leadership and situational demands.

Determining leadership style:

Low LPC

High LPC

task-motivated leaders.
relationship-motivated leaders.

Leadership is part of ones personality, and


therefore relatively enduring and difficult to
change.

Leadership style must be fit to the situation.


Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Fiedlers contingency model (cont.).

Diagnosing situational control:


Quality of leader-member relations (good or
poor).
Degree of task structure (high or low).
Amount of position power (strong or weak).
Task oriented leaders are most successful in:
Very favorable (high control) situations.
Very unfavorable (low control) situations.
Relationship-oriented leaders are most
successful in:
Situations of moderate control.
Management 10/e - Chapter 16

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Figure 16.4 Matching leadership style and situation:


summary predictions from Fiedlers contingency theory.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

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.

Management 10/e - Chapter 16

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Figure 16.5 Leadership implications of the HerseyBlanchard situational leadership model.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Hersey-Blanchard leadership styles:


Delegating.

Low-task, low-relationship style.

Works best in high readiness-situations

Participating.

Low-task, high-relationship style.

Works best in low- to moderate-readiness


situations.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


theories of leadership?

Hersey-Blanchard leadership styles:


Selling.

High-task, high-relationship style.

Work best in moderate- to high-readiness


situations.

Telling.

High-task, low-relationship style.

Work best in low-readiness situations.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Houses path-goal leadership theory.


Effective

leadership deals with the


paths through which followers can
achieve goals.
Leadership styles for dealing with pathgoal relationships:
Directive leadership.
Supportive leadership.
Achievement-oriented leadership.
Participative leadership.

Management 10/e - Chapter 16

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Figure 16.6 Contingency relationships in the pathgoal leadership theory.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Houses leadership styles:

Directive leadership.

Communicate expectations.
Give directions.
Schedule work.
Maintain performance standards.
Clarify leaders role.

Supportive leadership.

Make work pleasant.


Treat group members as equals.
Be friendly and approachable.
Show concern for subordinates well-being.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Houses leadership styles:

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 subordinates suggestions.
Use subordinates suggestions.
Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

When to use Houses leadership


styles:
Use

directive leadership when job


assignments are ambiguous.
Use supportive leadership when worker
self-confidence is low.
Use participative leadership when
performance incentives are poor.
Use achievement-oriented leadership
when task challenge is insufficient.
Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Leader-Member Exchange Theory


(LMX)

Not all people are treated the same by


leaders in leadership situations
In

groups

High
Out

LMX

groups

Low

LMX

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Leader-Member Exchange Theory (LMX)


Nature of the exchange is based on presumed
characteristics by the leader

High LMX relationship:

favorable personality

competency

compatibility

Low LMX relationship:

low competency

unfavorable personality

low compatibility
Management 10/e - Chapter 16

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Figure 16.7 Elements of leader exchange theory.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Vroom-Jago leader-participation
theory.
Helps

leaders choose the method of


decision making that best fits the
nature of the problem situation.

Basic

decision-making choices:

Authority

decision.

Consultative
Group

decision.

decision.

Management 10/e - Chapter 16

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Figure 16.8 Leadership implications of Vroom-Jago


leader-participation model.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Decision-making options in the


Vroom-Jago leader-participation
theory:
Decide

alone.

Consult

individually.

Consult

with group.

Facilitate.
Delegate.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

Contingency factors in the VroomJago leader-participation theory:

Decision quality.

Decision acceptance.

Who has the information needed for problem


solving.
Importance of subordinate acceptance to
eventual implementation.

Decision time.

Time available to make and implement the


decision.
Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

According to Vroom-Jago leaderparticipation theory, a leader should


use authority-oriented decision
methods when

The leader has greater expertise to solve a


problem.
The leader is confident and capable of acting
alone.
Others are likely to accept and implement the
decision.
Little or no time is available for discussion.
Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

According to Vroom-Jago leaderparticipation theory, a leader should


use group-oriented and participative
decision methods when

the leader lacks sufficient information to solve a


problem by himself/herself.
the problem is unclear and help is needed to
clarify the situation.
acceptance of the decision and commitment by
others is necessary for implementation.
adequate time is available for true participation.

Management 10/e - Chapter 16

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Study Question 3: What are the contingency


approaches to leadership?

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.
Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

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.
Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

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.
Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Characteristics of transformational
leaders:
Vision.
Charisma.
Symbolism.
Empowerment.
Intellectual

stimulation.

Integrity.

Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Emotional intelligence.
The

ability of people to manage


themselves and their relationships
effectively.
Components of emotional intelligence:
Self-awareness.
Self-regulation.
Motivation.
Empathy.
Social skill.
Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Gender and leadership.


Both

women and men can be effective


leaders.
Women tend to use interactive
leadership.
A style that shares qualities with
transformational leadership.
Men tend to use transactional
leadership.
Interactive leadership provides a good
fit with the demands of a diverse
workforce and the new workplace.
Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Gender and leadership


Future

leadership success will depend


on a persons capacity to lead through:
Openness.
Positive relationships.
Support.
Empowerment.

Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Druckers 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.

Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Moral leadership.

Ethical leadership adheres to moral standards


meeting the test of good rather than bad
and right rather than wrong.
All leaders are expected to maintain high
ethical standards.
Long-term, sustainable success requires ethical
behavior.
Integrity involves the leaders honesty,
credibility, and consistency in putting values
into action.

Management 10/e - Chapter 16

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Study Question 4: What are current issues in


leadership development?

Moral leadership

Leaders with integrity earn the trust of their


followers.
Leaders have a moral obligation to build
performance capacities by awakening peoples
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 ethical role models.

Management 10/e - Chapter 16

49

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