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Chapter 10

Chapter 10- Effective Leadership.docx

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Dave Swanston

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November 8, 2013 Chapter 10- Effective Leadership  Leadership- The process of motivating, influencing, and directing others in the organization to work productively in pursuit of organization goals Managing and Leading  Leaders = doing the right things and managers = doing things right  Leaders = focus on vision/mission/goals and managers = focuses on preserving the status quo  All managers are also leaders and must perform the leadership function effectively to excel at the other management functions- strategizing, planning, organizing, controlling  Management and leadership are not two different tasks that require different skills; same thing  Good leadership is important to the performance of an organization because a change in CEOs should explain some of the variance in enterprise profitability MEANING that leadership changes at the top of the organization can have substantial impact on the subsequent performance of an enterprise What Makes an Effective Leader?  Effective Leadership- The ability of a leader to get high performance from his/her subordinates  What makes leaders great? 1. Self awareness 2. Personal conviction 3. Courage 4. Creativity 5. Curiosity 6. Ability to inspire 7. Ability to listen 8. Ability to innovate 9. Eagerness to experience 10. Willingness to reflect  5 Perspectives on leadership explaining the nature of effective leadership (5 perspectives together give complete portrait of what it takes to be an effective leader): 1. The Power Influence Perspectives  Explains leadership effectiveness in terms of the amount of power possessed by a leader, the type of power possessed, and how that power is used to influence others within the organization  Effective leaders combine their hierarchical power, expertise, network of allies, and personal power to achieve their goals; skilled organizational politicians 2. The Competency (Trait) Perspective  Identifies the traits and competencies of effective leaders; traits that can be learned  Certain personality traits (intelligence, motivation, drive, self confidence, and desire for power) might be associated with effective leadership November 8, 2013  Several traits that are important predictors of effective leadership:  Strategic Thinking o Strategic Thinking- The cognitive ability to analyze a complex situation, abstract from it, and draw conclusions about the best strategy for the firm to follow o Intelligence (natural) + reasoning skills (can be learned) = seeing the big picture  Achievement Motivation o Achievement Motivation- The unconscious concern for achieving excellence in accomplishments through one’s individual efforts o Set challenging goals for themselves, assume personal responsibility for goal accomplishment, are persistent in pursuing those goals, take calculated risks to achieve their goals, and actively use information for feedback o Intrinsic Drive- goal driven individuals  Power Motivation o Power Motivation- The unconscious drive to acquire status and power and to have an impact on others o Necessary because getting things done in organizations requires individuals to accumulate power and use it to influence others o Requires ability to use that power that earns the respect and commitment of followers  Charisma o Charisma- The ability of some people to charm or influence others o Have high self confidence, strength of conviction, and assertiveness o Charisma can also work against effective leadership; getting people to do things that defy rational logic  Emotional Intelligence o Emotional Intelligence- The ability to monitor one’s own and others’ feelings and emotions, to discriminate among them, and to use this information to guide one’s thinking and actions; key components include:  Self Awareness- The ability to understand one’s own moods, emotions, and drives, as well as their effect on others  Self Regulation- The ability to control or redirect disruptive impulses or moods and to think before acting  Motivation- A passion for work that goes beyond money/status and a propensity to pursue goals with energy and persistence  Empathy- Understanding the feelings and viewpoints of subordinates and taking those into account when making decisions  Social Skills- Friendliness with a purpose o Self regulation of emotions contribute to leadership effectiveness  Limitations and Implications  Not all traits are equally important, some traits are more critical in certain situations than others are  Not all great leaders demonstrate all traits  What works for one situations might not work in another  Importance of traits is context dependent 3. The Behaviour Perspective  Asserts that certain behaviours are related to leadership effectiveness November 8, 2013  Assumption: Certain leadership behaviours result in greater commitment on the part of subordinates and hence higher performance in pursuit of organization goals  Two clusters of leadership behaviours: 1. People Oriented Behaviour- A leadership style that includes showing mutual trust and respect for subordinates, demonstrating genuine concern for their needs, and having a desire to look out for their welfare (high degree of emotional intelligence)  Lack of this behaviour = ineffective leader 2. Task Oriented Behaviour- The style of leaders who assign employees to specific tasks, clarify their work duties and procedures ensure that they follow company rules, and push them to reach their performance capacity  Problems with this perspective:  Two clusters are not mutually exclusive  Two categories are broad generalizations that mask specific behaviours within each category and the specific behaviours may be more important than the broad form  Appropriate behaviours may be context dependent 4. The Contingency Perspective  Appropriate behaviours for a leader to adopt depend on context, and that what works in some situations will not in others  Three contingency perspectives: 1. Fiedler’s Contingency Theory  Effectiveness of a leader should be measured by how the team, group, or organization under the leader performed; effectiveness o f two leadership styles (task oriented and people oriented) depends on 3 factors: o Leader-Member Relations- How well followers respect, trust, and like their leaders (good = favourable and poor = unfavourable) o Task Structure- The degree to which the jobs of subordinates are highly structured with clear work responsibilities, well defined tasks, explicit goals, a
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