MOS 1021B - Leadership.docx

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Management and Organizational Studies
Management and Organizational Studies 1021A/B
Kevin Thompson

MOS 1021B The Nature and Importance of Leadership Meaning of leadership  Ability to inspire  Stimulate others to achieve worthwhile goals  Ability to inspire confidence and support among the people who are needed to achieve organizational goals  Interpersonal influence; through communication toward goals attainment  Influential increment over and above mechanical compliance with directions/orders  Influencing people by persuasion  Principal dynamic force that motivates and coordinates the organization in accomplishing objectives  Willingness to take blame  Needed at all levels of organization  Ability to lead effectively is a rare quality Leadership as partnership  Long-term relationship, or partnership, between leaders and group members  Leader and group members connected in a way that power between them is balanced  From authoritarianism to shared decision making  4 things necessary for partnership o Exchange of purpose  Defining vision and values at every level o A right to say no  Expressing contrary opinions are not wrong o Joint Accountability  Taking accountability for successes and failures o Absolute honesty  Tell the truth as power is distributed Leadership as a Relationship  A relationship between leader and people being led  Something you do with them, not to them  A major success factor for the three top positions in large organizations  Web of people > web of technology Leadership versus management  Deals with interpersonal aspects of a manager’s job  Deals with change, inspiration, motivation and influence  Managers must know how to lead as well as manage  Key distinctions between management and leadership o Management produces order, consistency, and predictability o Leadership produces change and adaptability to new products, new markets, new competitotrs, new customers and new work processes o Leadership involves having a vision of what the organization can become and mobilizing people to accomplish it o Leadership – eliciting cooperation and teamwork from people; keeping people motivated by using persuasion o Leadership produces change; management more likely to produce degree of predictability and order o Top level leaders transform organizations, top-level managers manage organizations o Leader creates vision to direct organization; manager implements the vision  Effective leaders have to be good managers themselves; or supported by effective managers  Effective leaders also manage, and effective managers also lead The impact of leadership on Organizational performance  Leadership DOES make a difference o Measuring impact of transactional (routine) ad charismatic (inspirational) leadership on financial performance o Results were  Transactional leadership not significantly related to performance  Charismatic leadership showed slight positive relationship with performance  In an uncertain environment, charismatic leadership is more related to performance o CEOs influence 15 percent of total influence factors in a company’s profitability or total return to shareholders o Choice of CEO leader is as important as the choice of whether to remain in the same industry or enter a different one o Importance of enthusiasm, leadership and ability to work with people o “You are required to have a vision of what the business can be, and communicate that vision to the company officers and franchisees” o Changes in leadership are followed by changes in company performance o Leaders might be responsible for between 15 and 45 percent of a firm’s performance o Attribution theory – attributing causality to leaders (successes and failures)  Leadership DOES NOT make a difference 1. Substitutes for leadership - factors in the work environment that provide guidance and incentives to perform as substitutes for leaders; BUT usually requires delegation by higher authority, guidance, encouragement and support. a. Closely knit teams of highly trained individuals i. Directive leadership is seemingly unimportant ii. When danger is highest, groups rely more on each other b. Intrinsic satisfaction i. Employees finding work strongly self-motivation or intrinsically satisfying requires a minimum of leadership c. Computer technology i. Computer aided monitoring and computer networking takes over leadership functions ii. Productivity and quality data iii.Directions for tasks iv. Error detection, goal setting d. Professional norms i. Incorporation of strong professional norms often require a minimum of leadership 2. Leadership Irrelevance a. Prefer analysis of situation than presence of leader b. Factors outside leader’s control have a larger impact on business outcomes than do leadership actions c. High-level leaders have control over only a few resources d. Modern organization – effective leadership means widespread collaboration in obtaining ideas; authority and power are shared, people lead themselves e. Contrasted with leader constraint theory 3. Complexity Theory a. Organizations are complex systems that cannot be explained by the usual rules of nature b. Little can be done by leaders to alter course of complex organizational system c. Outside forces determine a company’s fate d. System dominates Leadership Roles  Role – an expected set of activities or behaviors stemming from one’s job  A subset of the managerial roles 1. Figurehead a. Entertain clients or customers as official representative b. Making oneself available to outsiders as rep c. Serving as an official rep of organization at gatherings outside the organization d. Escorting official visitors 2. Spokesperson a. Answering letters/inquiries; formally reporting to individuals and groups outside manager’s direct organizational unit b. Keeps five groups of people informed i. Upper level management ii. Clients/customers iii.Other important outsiders e.g. labour unions iv. Professional colleagues v. General public 3. Negotiator a. Making deals with others for needed resources b. Bargaining with superiors for funds, facilities, equipment etc. c. Bargaining with other units in organization for use of staff, facilities, equipment etc. d. Bargaining with suppliers and vendors for services, schedules, and delivery times 4. Coach and motivator a. Takes time to coach and motivate team members b. Inspire large groups of people inside organization c. Informally recognize team member’s achievements d. Provide feedback concerning ineffective performance e. Inform members of steps to improve performance f. Implementing rewards and punishments to encourage and sustain good performance g. Inspiring people and being highly ethical 5. Team builder a. Ensure team members are recognized for their accomplishments b. Initiating activities contributing to morale c. Holding periodic staff meetings to encourage team members to talk about accomplishments, problems, concerns 6. Team player a. Display appropriate personal conduct b. Cooperating with other units in the organization c. Displaying loyalty to superiors by supporting plans/decisions 7. Technical problem solver a. Serving as technical expert or adviser b. Performing individual contributor tasks on a regular basis, such as making sales calls or repairing machinery 8. Entrepreneur a. Suggesting innovative ideas or furthering business aspects of the firm
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