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MGHB02H3 (269)
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Chapter 9

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Management (MGH)
Anna Nagy

MGTB27 Chapter 9: Leadership Leadership: the influence that particular individuals exert on the goal achievement of others in an organizational context  Enhance productivity, innovation, satisfaction, commitment Strategic Leadership: ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization  Sustaining competitive advantage  Open and honest in leaders’ interactions Any organizational member can exert influence on other members, thus engaging in leadership Managers, executive, supervisor, department head expected to influence others, and they are given specific authority to direct employees Research on Leadership Traits Traits: individual characteristics such as physical attributes, intellectual ability, and personality Traits associated with leadership effectiveness: intelligence, energy, self-confident, dominance, motivation to lead, emotional stability, honesty and integrity, need for achievement Limitations of the Trait Approach  Difficult to determine trait  dominance  Little information about how to train and develop leaders and no way to diagnose failures of leadership  Failure to take into account the situation in which leadership occurs  Possessing the appropriate traits for leadership makes it possible and certain actions will be taken and will be successful The Behaviour of Leaders Consideration: the extent to which a leader is approachable and shows personal concern and respect for employees Initiating Structure: the degree to which a leader concentrates on group goal attainment The Consequences of Consideration and Structure  Contribute positively to employees’ motivation, job satisfaction, leader effectiveness  Depend on characteristics of the task, the employee, and the setting in which work is performed Leader Reward Behaviour: the leader’s use of compliments, tangible benefits, and deserved special treatment  Contingent on performance  Understand positive outcomes if they achieve expectations Leader Punishment Behaviour: the leader’s use of reprimands or unfavourable task assignments and the active withholding of rewards  React negatively with great dissatisfaction Situational Theories of Leadership Fiedler’s Contingency Theory  States that association between leadership orientation and group effectiveness is contingent on how favourable the situation is for exerting influence MGTB27 Least Preferred Co-Worker (LPC)  A current or past co-worker with whom a leader has had a difficult time accomplishing a task  High LPC  motivated to maintain interpersonal relations  Low LPC  motivated to accomplish the task  LPC scores is an attitude of the leader toward work relationships Situational Favourableness  Leader-member relations o Leader is in favourable situation to exert influence  Task structure o Leader able to exert considerable influence on the group o Set performance standards and hold employees responsible  Position power o Formal authority granted to the leader by the organization to assign task  The situation is most favourable for leadership when leader-member relations are good, the task is structured, and the leader has strong position power Research Evidence  Major source of many inconsistent findings regarding Contingency Theory  Task leadership in octant II (good relations, structured task, weak position power) contradicted by the evidence Cognitive Resources Theory  Focuses on the conditions in which a leader’s cognitive resources (intelligence, expertise, and experience) contribute to effective leadership  Importance of intelligence for leadership effectiveness depends on: o Directiveness of the leader o Group support for the leader o Stressfulness of the situation House’s Path-Goal Theory  Concerned with the situation under which various leader behaviours (directive, supportive, participative, achievement-oriented) are most effective  The effective leader forms a connection between employee goals and organizational goals Leader Behaviour Situation Factors  Directive  Employee characteristics  Supportive  Environmental factors  Participative Employee Outcomes  Achievement-oriented  Job satisfaction  Acceptance of leader  Effort Effective Leadership should take advantage of the motivating and satisfying aspects of jobs while offsetting or compensating for those job aspects that demotivate or dissatisfy. Participative Leadership  Involving employees in making work-related decisions  “area of freedom” increase  leader behave in participative manner  Determining vacation schedules, arranging for phone coverage during lunch hour, deciding scarce resources allocation MGTB27 Potential Advantages of Participative Leadership  Motivation  Quality  Acceptance Potential Problems for Participative Leadership  Time and energy  Loss of power  Lack of receptivity or knowledge Vroom and Jago’s Situational Model of Participation  Leader’s goal should be to make high quality decisions  employees commit without delay  Commitment requirement is likely to be high if employees are very concerned about which alternative is chosen if they will have to actually implement the decisions 
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