Leadership - Chapter 1 Notes

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Management and Organizational Studies
Management and Organizational Studies 1021A/B
Ian Dunn

The Nature and Importance of Leadership The Meaning of Leadership  Characteristics of leaders: Energizing employees, be a spokesperson for the organization, be personable, and have good negotiating skills.  Leadership: The ability to inspire confidence and support among the people who are needed to achieve organizational goals.  Other definitions of leadership:  Interpersonal influence, directed through communication toward goal attainment  Influential increment over and above mechanical compliance with directions and orders  Act that causes others to act or respond in a shared direction  Art of influencing people by persuasion or example to follow a line of action  Principal dynamic force that motivates and coordinates the organization in the accomplishment of its objectives  Willingness to take the blame  Figuring out what’s right, then explaining it to people  Leadership is needed at all levels in an organization.  Change needs to come from leaders at lower levels, rather than relying exclusively on leadership from the top.  The ability to lead others effectively is a rare quality, and is even rarer at the highest levels in an organization because the complexity of the positions requires a vast range of leadership skills.  Firms in search of new leadership seek out a select group of brand-name executives with proven track records, and also why companies emphasize leadership T&D to create a new supply of leaders throughout the firm. Leadership as a Partnership  A partnership is a long-term relationship between leaders and group members; the power between them is approximately balanced.  Opposite of parenting and occurs when control shifts from leader to group member.  Empowerment and team building.  4 things are necessary for a valid partnership to exist: a) Exchange of purpose: every worker is responsible for defining vision and values. b) A right to say no. A person can lose an argument but never a voice. c) Joint accountability. Each person is responsible for outcomes and the current situation. d) Absolute honesty. Not telling the truth is an act of betrayal. With the distribution of power, people tell the truth because they feel less vulnerable. Page 1 of 5 Leadership versus Management  Leading is part of a manager’s job, but a manager must also plan, organize, and control.  Leadership deals with the interpersonal aspects of a manager’s job, whereas planning, organizing, and controlling deal with the administrative aspects. Leadership Management Produces change and adaptability to new Produces order, consistency, and predictability. products, markets, competitors, customers, and work processes. Involves having a vision of the future and Manages or maintains organizations. mobilizing people to accomplish it. Elicits cooperation and teamwork from people Chooses the means to achieve the end that the and keeps them motivated. leader formulates. Deals with change, inspiration, motivation, and influence. Transforms organizations. Creates a vision to direct the organization. The Positive Impact of Leadership on Organizational Performance  Transactional leadership is not significantly related to performance.  Charismatic leadership showed a slight positive relationship with performance.  Given an uncertain environment, charismatic leadership is more strongly related to performance.  A leader is responsible for 15-45% of a firm’s performance.  Likeability of the leader and rewards for good performance are major correlations of performance.  Attribution theory: Theory of how we explain the causes of events.  Most organizational successes are attributed to heroic leaders. The Negligible Impact of Leadership on Organizational Performance  Substitutes for leadership exist when leadership is of little consequence to the performance and satisfaction of team members. (e.g. factors in the environment that provide guidance and incentives to perform, making the leader’s role superfluous)  Closely knit teams of highly trained individuals require minimal leadership.  Intrinsic satisfaction in employees makes them require minimal leadership.  Computer technology is a substitute of leadership.  Professional norms incorporated into workers make them require little leadership.  The substitutes of leadership concept reflect naiveté because self-management requires delegation by a higher authority that provides guidance, encouragement, and support. Page 2 of 5  Leadership is irrelevant to most organizational outcomes because factors outside the leader’s control have a larger impact on outcomes than leadership actions.  High-level leaders have unilateral control over only a few resources, which is further limited by obligations to stakeholders.  Firms choose new leaders whose values are compatible with those of the firm, who act in similar ways of previous leaders.  Modern leadership means widespread collaboration in obtaining ideas, rather than the leader doing all the innovating. ( = shared power and self-leadership)  Greater value as a leadership constraint theory, stating that there are constraints but still room to influence others.  Complexity theory states that organizations are complex systems that cannot be explained by the usual rules of nature.  Leaders and managers can do little to alter the course of the complex organizational system.  Forces outside the leader/manager’s control determine a company’s fate. Leadership Roles  Most basic role of corporate l
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