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Chapter 11

Chapter 11 - Leading and Leadership Development.doc

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Global Management Studies
GMS 200
Sui Sui

C HAPTER 11 – L EADING AND LEADERSHIP DEVELOPMENT THE NATURE OF L EADERSHIP - Leadership: is the process of inspiring others to work hard to accomplish important tasks - Leading: builds the commitments and enthusiasm for people to apply their talents to help accomplish plans and controlling makes sure things turn out right Management Functions - Planning – to set the direction and objectives - Organizing – to create structures o Brings together resources to turn plans into actions - Leading – to inspire effort o Communicate the vision o Build enthusiasm o Activate commitment, hard work - Controlling – to ensure results and things turn out right ⋅ Leadership and Power - Power: is the ability to get someone else to do something you want done or to making things happen the way you want - Power vs. influence o Power of the POSITION – based on things managers can offer to others o Power of the PERSON – based on how managers are viewed by others - Source of Position Power o Three bases of position power a o Reward Power: is the capacity to offer something of value as a means of influencing other people  If you do what I ask, I’ll give you a reward o Coercive Power: is the capacity to punish or withhold positive outcomes as a means of influencing other people  If you don’t I’ll take away your vacation pay o Legitimate Power: is the capacity to influence other people by virtue of formal authority, or the rights of office  I’m the boss so you have to listen to me - Sources of Personal Power o Two bases of personal power o Expert Power: is the capacity to influence other people because of specialized knowledge  You should do what I want because of my special knowledge o Referent Power: is the capacity to influence other people because of their desire to identify personally with you  You should do what I want in order to maintain a positive relationship with me ⋅ Leadership and Vision - Vision: is a clear sense of the future - Visionary Leadership: brings to the situation a clear sense of the future and an understanding of how to get there - Ex. Vision board o Vision – a world-class engineering enterprise committed to enhancing stakeholder value o Mission – to be an Indian multinational engineering enterprise providing. ⋅ Leadership as Service - Servant leadership: based on commitment to serving others – to help people use their talents to the full potential while working together for organizations that benefit society o Followers are more important than leader o Focuses on empowerment, not power - Empowerment: enables others to gain and use decision-making power - Effective leaders empower others by providing them with the information, responsibility, authority, and trust to make decisions and act independently o Ex. Empower your employees  James Kinnear, former chief executive of Texaco, trained the best Texaco’s Saudi local employees, and pushed them up the corporate ladder Leadership Traits and Behaviours ⋅ Leadership Traits - Great Person Theory: the notion to identify successful leaders and then determine what made them great - Shelly Kirkpatrick and Edwin Locke identify these personal traits as being common among successful leaders: o Drive: high energy, display initiative, and are tenacious (persistent) o Self-Confidence: trust themselves and have confidence in their abilities o Creativity: are creative and original in their thinking o Cognitive Ability: have the intelligence to integrate and interpret information o Business Knowledge: know their industry and its technical foundations o Motivation: enjoy influencing others to achieve shared goals o Flexibility: adapt to fit the needs of followers and demands of situations o Honesty and Integrity: are trustworthy; they are honest, predictable, and dependable ⋅ Leadership Behaviours - Leadership Styles: is the recurring pattern of behaviours exhibited by a leader - Most leader-behaviour research focused on two dimensions of leadership style: 1. Concern for the task to be accomplished 2. Concern for the people doing the work - Leader high in concern for task plans and defines work to be done, assigns tasks responsibilities, set clear work standards, urges task completion, and monitors performance results - Leader high in concern for people is warm and supportive towards followers, maintains good social relations with them, respects their feelings, is sensitive to their needs and shows trust in them - A training program is designed to help shift the person’s style in the preferred direction of becoming strong on both dimensions, Blake and Mouton called this preferred style team management - Country club manager – high concern for people, low concern for production o Focuses on people’s needs, building relationships - Team manager – high concern for production and people o Focuses on building participation and support for a shared purpose - Impoverished manager – low concern for people and production o Focuses on min. effort to get work done - Authority-obedience manager – high concern for production, low for people o Focuses on efficiency of tasks and operations - Middle-of-road manager – focuses on balancing work output and morale ⋅ Classic Leadership Styles - Autocratic Style: acts in unilateral command-and-control fashion – emphasizes task over people - Laissez-faire Style: lets the group make decisions o This leader displays a “do the best you can and don’t bother me” attitude - Democratic style: committed to both task and people - Human relations style – emphasizes people over tasks Contingency Approaches to Leadership - The following contingency approaches were developed, which share the goal of understanding the conditions for leadership success in different situations ⋅ Fiedler’s Contingency Model - Fred Fiedler proposed that good leadership depends on a match between leadership style and situational demands - Leadership style is measured on the least-preferred co-worker scale known as the LPC scale o Part of one’s personality o Must be fit to the situation o Relatively enduring and difficult to change o Task-motivated and relationship-motivated o Position power, task structure, and leader-member relations - Low LPC – task motivated leaders - High LPC – relationship-motivated leaders - Understanding Leadership Situations o Three contingency variables are used to diagnose situational control  Quality of leader-member relations (good or poor) measures the degree to which the group supports the leader  Degree of task structure (high or low) measures the extent to which task goals, procedures, and guidelines are clearly spelled out  Amount of position power (strong or weak) measures the degree to which the position gives the leader power to reward and punish subordinates - Matching Leadership Style and Situation o Neither task-oriented nor the relationship-oriented leadership style is effective all the time; each style appears to work best when used in the right situation, the results can be stated as two propositions  Proposition 1: is that a task-oriented leader will be most successful in either very favourable (high-control) or very unfavourable (low-control) situations  Proposition 2: is that a relationship-oriented leader will be most successful in situations of moderate control ⋅ Hersey-Blanchard Situational Leadership Model - His model suggests that successful leaders do adjust their styles and they do so based on the maturity of followers indicated by their readiness to perform in a given situation - Possible leadership styles that result from different combinations of task-oriented and relationship-oriented behaviours are as follows: o Delegating – allowing the group to take responsibility for task decisions; a low-task, low-relationship style  Works best in high-readiness situations of able and willing or confident followers o Participating – emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style  Is recommended for low-to-moderate readiness (followers able but unwilling or insecure) o Selling – explaining task directions in a supportive and persuasive way; a high-task, high-relationship style  For moderate-to-high readiness (followers unable but willing or confident) o Telling - giving specific task directions and closely supervising work; a high- task, low-relationship style  Works best at the low extreme of low readiness, where followers are unable and unwilling or insecure - Figure 11.5, Leadership Implication of Hersey, pg. 325 - Hersey believed that leadership styles should be adjusted as followers change over time - The model implies that if the correct styles are used in the lower-readiness situations followers will “mature” and grow in ability, willingness, and confidence, this allows the leader to become less directive as followers mature ⋅ House’s Path-Goal Leadership Theory - Theory suggests that an effective leader is one who clarifies paths through which followers can achieve both task-related and personal goals - Best leaders help followers move along these paths by clarifying goals, removing barriers and providing valued rewards for goal accomplishments o Directive leadership – letting subordinates know what is expected; giving directions on what to do and how; scheduling work to be done; maintaining definite standards of performance; clarifying the leader’s role in the group o Supportive leadership – doing things to make work more pleasant; treating group members as equals; being friendly and approachable; showing concern for the well-being of subordinates o Achievement-oriented leadership – setting challenging goals; expecting the highest levels of performance; displaying confidence in meeting high standards o Participative leadership – involvin
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