Leadership Notes.docx

42 Pages

Business Administration
Course Code
Business Administration 3323K
Eric Sloat

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Leadership Leadership Conceptualizations Leadership is often conceptualized as; - A process – resides in the context and can be learned - A trait – born with it, it’s in you - An ability – natural or learned - A skill – a competency that can be learned or developed - A behaviour – observable task and or process behaviours - A relationship – a process of communication and collaboration Leadership Defined “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.” Northouse, page 3 - An interactive event between leaders and followers - Not just the role of the formally designated leader in a group “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.” Northouse, page 3 - How the leader affect followers - Without the ability to influence, leadership cannot exist “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.” Northouse, page 3 - Leaders cannot influence unless there are people around to influence - It is a social activity “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.” Northouse, page 3 - There must be a direction; something to achieve/attain Leadership Described Trait versus Process Leadership - Give some examples of qualities people are BORN with that make them leaders - Extraversion, IQ, charisma Assigned versus Emergent Leadership - Give an example of an instance in which you “emerged” as a leader. Explain how your communication might have facilitated your emergence as leader How the Concept of POWER differs from Leadership Power: The ability to influence (related to leadership as part of the influence process) - Referent Power form of personal power - Expert Power form of personal power - Legitimate Power form of positional power - Reward Power form of positional power - Coercive Power form of positional power Leadership versus Management Management Leadership Function: to provide order and Function: to produce change and consistency movement To manage means to accomplish To lead means to influence others and activities and master routines create visions for change Is a unidirectional authority relationship Is a multidirectional influence – directed toward coordinating activities relationship – process of developing in order to get a job done, join forces to mutual purposes, working together to sell goods and services create real change Managers are reactive and prefer to Leaders are emotionally active and work with people to solve problems but involved, seek to shape ideas and expand do so with low emotional involvement options to solve long-standing problems and limited choices by changing the way people think about what is possible Different but overlapping constructs! All leaders manage, but not all managers are leaders. Universal Leadership Attributes Negative Leader Attributes Positive Leader Attributes Loner Trustworthy Irritable Foresighted Ruthless Positive Asocial Builds confidence Nonexplicit Intelligent Dictatorial Win-win problem solver Uncooperative Excellence oriented Egocentric Just Plans ahead Dynamic Motivational Decisive Communicative Coordinator Honest Encouraging motivator Dependable Effective bargainer Informed Team builder Knowing Yourself - The best leaders really know themselves; o Their values o Their goals o Their boundaries o Their strengths and weaknesses - As part of this course, we will embark on some self-discovery missions to help you really learn about yourself and your leadership - Be prepared to share what you lean about yourself as, only by seeing differences can we really understand ourselves What is Leadership? Ownership Power A leader’s 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 - The New Golden Rule states that the person who holds the gold, rules - The Platinum rule is: do unto others what they want done unto them Dependency Power - An organization requires a continuing flow of human resources, money, customers and clients, technological inputs, and materials to continue to function - Organization subunits or individuals who can provide these key resources accrue power - The power resides implicitly in the other’s dependency on the resource - So – volunteer to learn new jobs, especially ones that others do not like as much to gain more power Power from Capitalizing on Opportunity - Power can be derived from being in the right place at the right time and taking the appropriate action - An individual or business unit may discover the opportunity by careful analysis and strategic planning, or by serendipity - Either way, an individual or business unit must act appropriately to capitalize on the opportunity Power from Managing Critical Aspects of the Business - Known as the strategic contingency theory - Units best able to cope with the firm’s critical problems and uncertainties acquire relatively large amounts of power - A subunit can acquire power by virtue of its centrality - Centrality is the extent to which a unit’s activities are linked into the system of organizational activities 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 firm’s hierarchy, the more power it possesses - Acquiring power alone does not make great leadership - Acquiring power takes ambition, but ambition can lead to unethical behaviour Psychological Definition of Empowerment - Meaning – if the work Is meaningful to individuals they will feel empowered - Competence – if the workers feel competent they will feel empowered - Self-determination – if the workers feel they have choices they will feel empowered - Impact – if the workers feel they can influence outcomes they will feel empowered - Internal Commitment – if the workers commit to a goal or vision on a personal level they will feel empowered Effective Empowering Practices Leadership Practices Effective empowerment 1. Foster initiative and responsibility 2. Link work activities to - Meaning to work - Competence organizational goals 3. Provide ample information - Self-efficacy 4. Allow group members to choose - Self-determination methods - Impact 5. Encourage self-leadership - Internal 6. Establish limits to empowerment commitment 7. Take into account cultural differences Effective Delegation of Empowerment - Commonly used tactic to increase worker empowerment - More narrow than empowerment - Refers to a specific task or responsibility, not the mental state of feeling empowered - Can be motivational and effective if done well Organizational Politics - Gaining power through means other than merit or luck - Regarded as emphasizing self-interest at the expense of others - Sometime called “kissing up” - Trend now is a more positive view - Seen as political skill combining social awareness and the ability to communicate Ethical Political Tactics and Strategies - Behaviours aimed at accruing power - Behaviours aimed at building relationships - Behaviours aimed at avoiding political blunders Tactics and Strategies to Accrue Power - Develop power contacts - Control vital information - Control lines of communication - Do what the political environment demands - Bring in outside experts - Make a quick showing - Remember the expectation of payback - Be politically correct - Be the first to accept reasonable changes Strategies to Build Relationship - 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 Avoid 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 company dress code Unethical Political Tactics - Backstabbing - Embrace or demolish - Setting a person up for failure - Divide and rule - Playing territorial games - Creating and then resolving a false catastrophe Exercising Control Over Dysfunctional Politics - Be aware of its causes and techniques - Avoid favouritism - 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 Summary - Organizational power may be derived from position, personal characteristics, ownership, managing critical problems, resources, capitalizing upon opportunity, and being close to power - Full-fledged empowerment includes meaning, competence, self-determination, impact, and internal commitment - Delegation is an important part of empowerment - To acquire and retain power, a leader must skillfully use organizational politics - Political tactics and strategies may be either ethical or unethical - Carried to the extreme, organizational politics can hurt an organization and its members History of Leadership Historically, leadership is male-dominated. Just like animals… - Chimpanzees, lions, wolves, etc. unite behind the dominant male of the land - Most accounts of leadership over the past few millennia (since the creation of Christian religions) are through the perspective of a patriarchal society But not all animals! - Elephants, meerkats, bonobos are matriarchal - Current customs are a recent invention in human history and our original method of familial practices were more women based - The fundamental assumption that has been built into 90% of the world’s countries is that man is the “natural” biological predisposition of the homo sapiens o Widespread oppression of women in all of those countries, but in varying degrees Similarly… - Leadership studies routinely define leadership as either standing out in a crowd or occupying a senior position in an organization - Very little emphasis historically on how the followers affect leadership Leadership discussions… Are almost as old as recorded history; - Can be found in o Greek and Latin classics o The Old and New Testaments o The writings of the ancient Chinese philosophers o In the early Icelandic sagas The Leadership Trail Formal leadership studies only began in the late 1920’s, but most have occurred since the (1970’s?, I think). 3 Broad Categories: - Instrumental theories - Inspirational theories - Informal theories The Trail Continued Theories trace (though not sequentially) the following path: - Trait Theory -> Behavioural and Style Theories -> Situational and Contingency theories - Functional Theory (1962) - Transactional and Transformational Theories (1978), Charismatic, Visionary - Environmental Theories The Management Trail… - 1770s – Industrial Revolution (machines emerge) AND Adam Smith’s division of Labor AND Eli Whitney’s interchangeable parts - 1900s – Frederick W. Taylor – Scientific Management (via time studies) - 1930s – 1960s – Hawthorne Studies and HR Management - 1940s – 1960s – Management Science/OR - 1960s – Computer Age - 1970s – Environmental Issues - 1980s – JIT, TQM, BRE, Global Competition - 1990s – Flexibility, Time-based Competition, SCM - 2000s – E-Comm, B-Comm, Outsourcing Leadership Studies Evolve - As times change and society changes and as researchers develop new researching tools, leadership studies evolve, too. - Seek to understand “what” leadership is AND “how” it is. (casual, variance, research versus process, understanding research) - Shifting from efficiency to effectiveness considerations, “great man = great leader” to “great leader = motivated followers that improve society” thinking The Still Unknown - Most research very North American o Individualistic vs. Collectivistic o Oriented towards self-interest rather than duty o Oriented towards rules and procedures rather than norms o Emphasizing assumptions of rationality rather than aesthetics, religion, or superstition o Assumes centrality of work and a democratic value orientation - Many cultures do not share these assumptions - Still little theory or evidence regarding: o Management selection o The introduction of change o Resolution of conflict o The exercise of upward influence o How leaders exercise political influence in organizations o Load of situational variables that enhance, constrain, or substitute for leadership Modern Views of Leadership: Traits and Skills Approaches The Trait Approach - Traits: defined as habitual patterns of behaviour, thought, and emotion o Relatively stable over time o Differ among individuals o Influence behaviour Which Traits Matter? - The list is long! - Which traits are essential for leaders? o 6 key traits identified: intelligence, confidence, charisma, determination, sociability, integrity - In truth, nearly all of the traits are probably related to effective leadership The Big Five (FFM) - In contemporary psychology, the “Big Five” factors of personality are five broad dimensions of personality which have been scientifically discovered to define human personality - Represent the basic structure behind all personality traits - The Big Five Factors and their component traits can be summarized as follows (think “CANOE”): - Conscientiousness: a tendency to show self-discipline, act dutifully, and aim for achievement; planned rather than spontaneous behaviour - Agreeableness – a tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others - Neuroticism – a tendency to experience unpleasant emotions easily, such as anger, anxiety, depression, or vulnerability; sometimes called emotional instability (Sensitive to situations) - Openness – appreciation for art, emotion, adventure, unusual ideas, curiosity, and variety of experience - Extraversion – energy, positive emotions, urgency, and the tendency to seek stimulation in the company of others - Which ones really matter to leadership? Emotional Intelligence - Trait EI refers to an individual’s self-perceptions of their emotional abilities: people who are more sensitive to their emotions and the impact of their emotions on others are more effective leaders - Very new avenue of inquiry (early 1990’s) and still emerging (varied definitions, measures, inconsistent research findings) BUT it does appear to make a difference Traits INFLUENCE Behaviour 3 approaches have been defined that explain how personality traits are “freed/constrained”… Dispositional - individuals behave according to their personality Situational – individuals behave according to context Eg. Scared of dogs, attacked by a dog when younger Interactionist – individuals behave according to both their personality and the context Skills Approach - Skills and abilities: can be learned and developed (as opposed to simply what you “are”) - This perspective emerged in 1955 (-ish) but was largely ignored due to a focus on trait research - However, since 2000 has become a MAJOR focus of study (hence the rise of leadership courses!) Three-Skill Approach (Katz) - Leadership depends on 3 basic personal skills: o Technical  Specific knowledge o Human  Knowledge about and ability to work with people o Conceptual  Ability to work with ideas and concepts - Importance of each depends on where you are in the management structure Skills Model (Mumford et al.) - Examines the relationship between a leaders’ capabilities and the leaders’ performance - Emphasizes the capabilities that make effective leadership possible - Describes five components of leader performance Individual Attributes Competencies Leadership General Cognitive Problem-Solving Outcomes Ability Skills Effective Crystallized Cognitive Social Judgement Problem Ability Skills Solving Motivation Knowledge Performance Personality Career Influences Environmental Influences Katz versus Mumford et al. - Katz suggest the importance of skills varies depending on hierarchical position - Mumford et al. describe how leadership outcomes are impacted by individual attributes, competencies, and external forces - Together, provide a map to help reach effective leadership in organizations Trait Approach: Strengths and Weaknesses Strength Weakness Very straightforward, measureable Focuses solely on leaders Helpful for personal awareness/development Huge list of traits Consistent with perception Doesn’t take situations into account Strong research behind it Very subjective because it is so broad Highlights the leader component Doesn’t relate to outcomes Gives benchmarks for what to look for in a leader Doesn’t help with teaching – you are or you aren’t Skills Approach: Strengths and Weaknesses Strength Weakness Stresses skills development Extends beyond the boundaries of leadership: general versus precise Intuitively appealing Weak in predictive value (no variability accounted for) Complex picture of leadership Not a strictly skills approach (includes traits!) Helps create a structure for education and development programs Style Approach Describes leadership as being comprised of two general kinds of behaviours: - Task Behaviours o Facilitate goal accomplishment: help group members achieve objectives - Relationship Behaviours o Help subordinates feel comfortable with themselves, each other, and the situation - Part of the Leadership Grid: o Paternalism/Maternalism  The “benevolent dictator”; acts gracious for purpose of goal accomplishment  Reward and approval are bestowed on people in return for loyalty and obedience; failure to comply leads to punishment o Opportunism  People adapt and shift to any grid style needed for gain maximum personal advantage  Leader usually has a dominant grid style used in most situations and a backup style that is reverted to when under pressure Three Original Styles - Authoritarian/Autocratic o Provide clear expectations o Clear division between leader and follower o Leader makes decisions - Participative/democratic o Leader offers guidance o Leader participates in group o Leader consults before deciding - Laissez-faire/Free reign o Leader offers little or no guidance o Group has few defined roles o Decision making is left to group Authoritarian / Autocratic - Ideal Conditions o Information is known o Short on time o Employees well motivated - Strengths o Control over group maintained o Communication is pronounced - Weaknesses o Less effective as trust builder o Connotation of “bullying” o Low on employee input Participative / Democratic - Ideal Conditions o Leader has partial information o Employees are knowledgeable or skilled - Strengths o Extracts strengths from group members o Members become well informed o Recognizes achievement - Weaknesses o Poor when group members  Don’t work well together  Procrastinate  Are free-riders Laissez-Faire - Ideal conditions o Creativity and freedom required - Strengths o In some situation, some people thrive on freedom - Weaknesses o “non-leadership” o Little is accomplished o Chaos o Unmotivated, disheartened employees result in productivity going down Delegative / Free Reign - Ideal Conditions o Employees can problem solve o Leader overwhelmed on other matters - Strengths o Frees up leader o Leader training for members - Weaknesses o At the mercy of employees o Group can wander from goal Style  Performance - Good Leaders use all 3 styles, with one of them normally dominant o Can “change suits” - Bad leaders tend to stick with one style Six Emotional Leadership Styles - Visionary o Moves people towards a shared vision - Coaching o Connects wants to organizational goals - Affiliative o Creates in-group connections / harmony - Democratic o Acts to value commitment via participation - Pacesetting o Builds challenge and exciting goals - Commanding o Gives clear directions by her powerful stance Charismatic vs. Quiet Styles Charismatic Leaders - Inspire others and encourage them to be their best - Followers want to impress a charismatic leader, so they work hard and strive to succeed Quiet Leaders - Actions speak louder than words - Not motivated to take credit Negative Styles - Post-hoc management o a poor, but common style - micromanagement o controls every detail - seagull management o flying in, pooping on you and flying off again - mushroom management o drop them in compost and keep them in the dark - Kipper management o Two-faced approach Situational Leadership Perspective Centred on two ideas: 1. Subordinates meander along the developmental continuum of competence and commitment 2. Leaders can match their style to the competence and commitment of subordinates - Focuses on leadership in situations - Emphasizes adapting style: different situations demand different kinds of leadership Dimensions Leaders evaluate employees’ competence and commitment to perform a given task Directive Behaviour Method: Help group members in goal achievement via one-way communication - Giving directions - Establishing goals and how to achieve them - Methods of evaluation and timelines - Defining roles Supportive Behaviour Method: Help group members in feeling comfortable with themselves, co-workers, and situation via two-way communication - Asking for input - Problem solving - Praising, listening Style S1 Main attention: goal achievement Minimum attention: supportive behaviours S1 is also called directing style. - High direction - Low support Style S2 Main attention: goal achievement and followers social and emotional needs S2 is also called coaching. - High direction - High support Style S3 Main attention: followers’ social and emotional needs Delegates day-to-day decision making S3 is also called Supportive. - Low direction - High support Style S4 Minimum attention: task and social support Delegates day-to-day decision making. S4 is also called Delegating. - Low direction - Low support Situational Approach 1 Task 2 Task Diagnose the Situation Adapt their Style - Identify the developmental level of - Leadership style must correspond to the employee employee’s development level Self-Efficacy is A person's belief Dimensions about his or her ability and capacity Leaders evaluate employees’ competence and to accomplish a task or to deal with commitment to perform a given task. the challenges of life. Supportive behaviour is based on self-efficacy, Read more: commitment, motivation, etc. http://www.businessdictionary.com/ Directive behaviour is based on task competency. definition/self- How Does the Situational Approach efficacy.html#ixzz2CgsUSKNt Work? Employees Developmental Needs Leader’s Leadership Style D1 – Focus on S1 – Directing Low-Medium Competence High Directive – Low supportive D2 – Focus on both S2 – Coaching Low-Medium Competence and Low-Medium Self- High Directive – High Supportive efficacy D3 – Focus on S3 – Supporting Low- Medium Self-Efficacy High Supportive – Low Directive D4 – Minimum Focus Required S4 – Delegating Low Supportive – Low Directive Leader Effectiveness Requires leaders to demonstrate a strong degree of flexibility. Leader Effectiveness depends on: Assessing subordinate’s developmental position, and adapting his/her leadership style to match subordinate developmental level. Model Strengths - Credible Training Model o General market approval - Practical o Easily understood and applied in various settings - Prescriptive o Clear “should” and “Should not” - Leader Flexibility o Gives value to leaders with the ability to change their style - Differential Treatment o Recognizes subordinates have unique needs Model Weaknesses Empirical isderived from or guided by - Empirical issues experience or experiment o Mixed empirical support o D1, D2, D3, D4 are conceptually but not empirically grounded - Theoretical issues o Conceptualization of “commitment” is unclear – depends on whether questions raise motivation, self-efficacy, emotional, etc. connotations o Does not account for how demographics influence the leader-subordinate prescriptions o Fails to adequately address the issue of one-to-one versus group leadership Warning Follow up on the notion of favouritism. - Model will generate issues if: o A leader’s assessment of the follower is different than the follower’s assessment of him or herself o A follower’s assessment of him or herself aligns with the leader’s assessment, but yet the employee wants a different treatment o A follower’s assessment of another follower’s needs differs from the assessment made by the leader o A leader delivers a style to suit the majority leaving followers with different needs to adopt to the style presented Contingency Theory Review: Leadership Theories Leader Focus: Great Man Theory - Leadership traits Behavioural Theory - Leadership skills / competency - Leadership style Leader-Follower Interaction Focus Situational Approach - Adapt leadership to situations Contingency Theory Approach Perspective Centred on two ideas 1. The primary contextual issues to consider are relations, task, and power related 2. Leaders with a style that matches the context can be selected Effectiveness depends on how well the leader’s style is suited to fit the context Contends that leaders should not expect to be effective in every situation st 1 Task Diagnose the Situation 1. Identify the Leader-Member Relations 2. Identify the Task Structure 3. Identify the Power Position Leader-Member Relations Subjective Rating Situational Factor #1 Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader Good Group Atmosphere - High degree of subordinate trust - High degree of liking - Positive relationship - Positive dynamics Poor Group Atmosphere - Little or no subordinate trust - Friction exists - Unfriendly / hostile - Negative dynamics Leader-Member Relations Good Poor Situational Factor #2 The degree to which requirements of a task are clear and spelled out. High Task Structure (Structured) - Requirements / rules: clear, stated, known - Path to accomplish: few alternative - Task completion: clear, verifiable - Limited number of correct solutions exist Low Task Structure (Unstructured) - Requirement / rules: unclear, unstated, unknown - Path to accomplish: many alternative - Task completion: not clear or verifiable - Unlimited number of correct solutions exist Task structure Structured Unstructured Objective Rating Situational Factor #3 Designates the amount of authority a leader has to reward or punish followers. Strong Power - Authority to hire or fire - Authority to give raises in rank or pay Weak Power - No authority to hire or fire - No authority to give raises in rank or pay Power Position Strong Weak Situation Favourableness The Sum of 3 Situational Factors Favourableness High Low Leader- Member Good Poor Relations Task Structures Structured Unstructured Structured Unstructured Power Position Strong Weak Strong Weak Strong Weak Strong Weak I II III IV V VI VII VIII Contingency Theory Approach 1 Task 2 Task Diagnose the Situation Select a Leader Style 1. Identify the leader member relations 1. Identify best Leader Style 2. Identify the Task Structure 2. Select Leader 3. Identify the Power Position a) Existing or, b) New Leadership Styles Questionnaire Based Rating Based on Leader’s Motivation Task-Motivated (Low LPCs) - Primary need: reaching goal - Secondary Need: developing close interpersonal relationships Relationship-Motivated (High LPCs) - Primary Need: developing close interpersonal relationships - Secondary Need: Reaching a goal Preferred Leadership Style Low LPCS High LPCs LPC Questionnaire LPC = Least Preferred Co-worker Measures Leader Orientation - Measure of a leader’s description of past “Least Preferred Co-worker (LPC)”
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