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Chapter 11

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Global Management Studies
GMS 200
Masoomeh Moharrer

What is the nature of leadership? 4/11/2013 8:35:00 PM 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 short-term demands. Figure 11.1 Leading viewed in relationship to the other management functions. LEADERSHIP + POWER 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. 2 sources of managerial power: POSITION power. Based on a manager’s official status in the organization’s hierarchy of authority. 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. PERSONAL power. Based on the unique personal qualities that a person brings to the leadership situation. Expert power. capacity to influence others because of one’s knowledge and skills. Referent power. capacity to influence others because they admire you and want to identify positively with you. Figure 11.2 Sources of position power and personal power used by managers. LEADERSHIP + VISION Vision A future that one hopes to create or achieve in order to improve upon the present state of affairs. Visionary leadership brings to the situation a clear and compelling sense of the future as well as an understanding of how to get there. Meeting the challenges of visionary leadership:  Challenge the process.  Show enthusiasm.  Help others to act.  Set the example.  Celebrate achievements. LEADERSHIP AS SERVICE Servant leadership follower-centered and committed to helping others w. their work  ―Others centered‖ not ―self-centered‖.  Power not a ―zero-sum‖ quantity.  Focuses on empowerment, not power. Empowerment 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. What are the important leadership traits and behaviours? 4/11/2013 8:35:00 PM Traits that are important for leadership success:  Drive  Self-confidence  Creativity  Cognitive ability  Business knowledge  Motivation  Flexibility  Honesty and integrity Leadership behaviour theories focus on how leaders behave when working with followers.  Leadership styles are recurring patterns of behaviours exhibited by leaders. Basic dimensions of leadership behaviours:  Concern for the task to be accomplished.  Concern for the people doing the work. Task Concerns People Concerns  Plans and defines work to be done.  Acts warm and supportive toward  Assigns task responsibilities. followers.  Sets clear work standards.  Develops social rapport with followers.  Urges task completion.  Respects the feelings of followers.  Monitors performance results.  Is sensitive to followers’ needs.  Shows trust in followers. BLAKE AND MOUTON LEADERSHIP GRID: Team management. High task concern; high people concern. Authority-obedience management. High task concern; low people concern. Country club management. High people concern; low task concern. Impoverished management. Low task concern; low people concern. Middle of the road management. Non-committal for both task concern and people concern. Figure 11.3 Managerial styles in Blake and Mouton’s Leadership Grid. CLASSIC LEADERSHIP STYLES: Autocratic style. Emphasizes task over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command-and-control fashion. Human relations style Emphasizes people over work Laissez-faire style. Shows little concern for task, lets the group make decisions, and acts with a ―do the best you can and don’t 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. What are the contingency approaches to leadership? 4/11/2013 8:35:00 PM FIEDLER’S CONTINGENCY MODEL Good leadership depends on a match between leadership and situational demands. Determining leadership style:  Low LPC  task-motivated leaders.  High LPC  relationship-motivated leaders. Leadership is part of one’s personality, and therefore relatively enduring and difficult to change. Leadership style must be fit to the situation. Diagnosing situational control:  Quality of leader-member relations (good or poor) The degree to which the group supports the leader.  Degree of task structure (high or low)The extent to which task goals, procedures, and guidelines are clearly spelled out.  Amount of position power (strong or weak)The degree to which the position gives the leader power to reward and punish subordinates. TASK ORIENTED LEADERS are most successful in:  Very favourable (high control) situations.  Very unfavourable (low control) situations. RELATIONSHIP-ORIENTED LEADERS are most successful in:  Situations of moderate control. Figure 11.4 Matching leadership style and situation: summary predictions from Fiedler’s contingency theory. 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. Figure 11.5 Leadership implications of the Hersey-Blanchard situational leadership model. Hersey-Blanchard leadership styles: Delegating. Participating.  Low-task, low-relationship style.  Low-task, high-relationship style.  Works best in high readiness-situations  Works best in low- to moderate- readiness situations. Selling Telling.  High-task, high-relationship style.  High-task, low-relationship style.  Work best in moderate- to high-  Work best in low-readiness situations. readiness situations. HOUSE’S PATH-GOAL LEADERSHIP THEORY Effective leadership deals with the paths through which followers can achieve goals. Leadership styles for dealing with path-goal relationships:  Directive leadership.  Supportive leadership.  Achievement-oriented leadership.  Participative leadership. Figure 11.6 Contingency relationships in the path-goal leadership theory. House’s leadership styles: Directive leadership. Supportive leadership.  Communicate expectations.  Make work pleasant.  Give directions.  Treat group members as equals.  Schedule work.  Be friendly and approachable.  Maintain performance standards.  Show concern for subordinates’ well-  Clarify leader’s role. being. Achievement-oriented leadership Participative leadership  Set challenging goals.  Involve subordinates in decision making.  Expect high performance levels.  Consult with subordinates.  Emphasize continuous improvement.  Ask for subordinates’ suggestions.  Display confidence in meeting high  Use subordinates’ suggestions. standards. When to use House’s 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. Leader-Member Exchange Theory (LMX) Not all people are treated the same by leaders in leadership situations  ―In groups‖ (High LMX)  ―Out groups‖ (Low LMX)  Nature of the exchange is based on presumed characteristics by the leader High LMX relationship:  favourable personality  competency  compatibility Low LMX relationship:  low competency  unfavourable personality  low compatibility Figure 11.7 Elements of leader-member exchange theory. 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: the leader makes the decision alone and then communicates it to the work group.  Consultative decision: the leader makes the decision after asking group members for information, advice, or opinions.  Group decision: all members participate in making a decision and work together to achieve a consensus regarding the preferred course of action. According to Vroom-Jago leader-participation 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. 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. Figure 11.8 Leadership implications of Vroom-Jago leader-participation model. Decision-making options in the Vroom-Jago leader-pa
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