CHAPTER 13 LEADERSHIP © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Lecture outline • • • • • • How leaders influence others Searching for leadership traits Identifying leadership behaviour Developing situational theory Transformational leadership Are leaders necessary? © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Leadership Process of influencing others to achieve organisational goals © 2003 McGraw-Hill Australia Pty Ltd PowerPoint How leaders influence others Sources of leadership power: • Legitimate power Power stemming from a position’s placement in the managerial hierarchy • Reward power Power based on the capacity to provide valued rewards to others • Coercive power Power based on the ability to punish others © 2003 McGraw-Hill Australia Pty Ltd PowerPoint How leaders influence others Sources of leadership power: • Expert power Power based on the possession of expertise valued by others • Information power Power based on access and control over the distribution of information • Referent power Power resulting from being liked, admired or identified with © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Sources of leadership power Legitimate power/ formal authority Reward power Coercive power Expert power Information power Referent power © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Effective use of power Likely reaction to use of power: = Resistance Coercion Legitimate Information Reward Referent Expert = Compliance = Commitment © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Leadership traits Distinctive internal qualities or characteristics of an individual, such as physical and personality characteristics, skills, abilities and social factors • Early research identified no common leadership traits • Current research is inconclusive © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Leadership behaviour Theoretical approach based on the idea that specific behaviours may make some leaders more effective than others © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Leadership behaviour Iowa, Michigan & Ohio studies: • Iowa Looked at leadership styles (autocratic, democratic, laissez faire) Workers preferred democratic style but this not best for performance • Michigan Employee centred leaders superior to Job centred leaders • Ohio Suggested that the ideal was for leaders to combine job-centred-ness with an ability to build mutual trust with subordinates © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 10 Gender & cultural differences • Gender There are few substantial differences between male and female leaders • Culture Japanese: group focus, long-term, humanistic European: individual focus, more humanistic than US USA: individual focus © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 Developing situational theory Situational theory: Theories of leadership taking into consideration important situational factors © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 Developing situational theory Fiedler’s contingency theory Theory: Effective groups depend on match between a leader’s style of relating with subordinates & the extent to which the situation gives control to the leader Leader’s style: • High member relations leader is concerned with people • Task-structure leader reduces ambiguity — ‘Do I know what I am supposed to do?’ • Position power — how well supported is the leader by his/her superiors? © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Developing situational theory Normative leadership model: Model that assists leadership assess critical situational factors that affect the extent to which they involve subordinates in particular decisions Range of options is from: A1: autocratic decision making G11: democratic decision making © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 Developing leadership theory Situational leadership model Theory based on the premise that leaders need to alter their behaviours depending on one major situational factor—the readiness of followers © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 Developing situational theory Situational leadership model High High R E L A T I O N S H I P Low relationship and low task Delegating Delegating Low Low Selling Selling Participating Participating High relationship and low task High task and low relationship High task and high relationship Task Task © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Telling Telling High High 17 Developing leadership theory Path–goal theory Theory attempting to explain how leader behaviour can positively influence the motivation and job satisfaction of subordinates © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 Developing leadership theory Path–goal theory: Environmental Environmentalcontingency contingencyfactors factors ••Task Taskstructure, structure, formal formalauthority, authority, work workgroups groups Leader Leaderbehaviour behaviour ••Directive Directive ••Supportive Supportive ••Participative Participative ••Achievement Achievement Outcomes: Outcomes: ••Performance Performance ••Satisfaction Satisfaction Subordinate Subordinatecontingency contingencyfactors factors ••Personality, Personality,experience, experience,abilities, abilities,needs needs © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 19 Transformational leadership Transformational leaders Leaders who motivate individuals to perform beyond normal expectations by inspiring subordinates to focus on broader missions transcending their own self-interests © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 20 Transformational leadership Motivate Motivateothers others Vision Visionbeyond beyondself-interest self-interest Seek Seekintrinsic intrinsichigher higherlevel levelgoals goals Seek Seekperformance performancebeyond beyondexpectations expectations Key Key characteristics characteristics of of transformational transformational leaders leaders Have Havecharisma charisma © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 21 Are leaders necessary? Neutralisers: Situational factors preventing leader behaviour from influencing subordinate performance/satisfaction These include: • Subordinate high need for independence • Low subordinate valence for available rewards • Physical distance of leader from subordinates © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 22 Are leaders necessary? Substitutes: Situational factors making the impact of leadership impossible or unnecessary These include: • • • • Satisfying work Able and experienced subordinates Professional orientation of subordinates Routine work, clearly specified methods/feedback © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 23 Leadership & the organisational cycle Entrepreneurial Entrepreneurial Transformational Transformational Collectivity Collectivity Transactional Transactional Formalisation Formalisation&& control control Transactional Transactional Elaboration Elaborationof of structure structure Transformationa Transformationall © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 24 Lecture summary • How leaders influence others – Sources of power – Use of power • Searching for leadership traits – Inconclusive results • Identifying leadership behaviour – Iowa, Michigan, Ohio studies – Leadership styles, employee versus jobcentredness © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 25 Lecture summary • Developing situational theory Fiedler Contingency model, Normative model, Situational leadership model, Path–Goal theory • Transformational leadership Charisma, Individual consideration & Intellectual stimulation • Are leaders necessary? Neutralisers, substitutes © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 26 [...]... Transactional Formalisation Formalisation&& control control Transactional Transactional Elaboration Elaborationof of structure structure Transformationa Transformationall © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 24 Lecture summary • How leaders influence others – Sources of power – Use of power • Searching for leadership traits – Inconclusive results • Identifying leadership behaviour – Iowa,... situational theory Normative leadership model: Model that assists leadership assess critical situational factors that affect the extent to which they involve subordinates in particular decisions Range of options is from: A1 : autocratic decision making G11: democratic decision making © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 Developing leadership theory Situational leadership model Theory based... Transformational leadership Motivate Motivateothers others Vision Visionbeyond beyondself-interest self-interest Seek Seekintrinsic intrinsichigher higherlevel levelgoals goals Seek Seekperformance performancebeyond beyondexpectations expectations Key Key characteristics characteristics of of transformational transformational leaders leaders Have Havecharisma charisma © 2003 McGraw-Hill Australia Pty... 21 Are leaders necessary? Neutralisers: Situational factors preventing leader behaviour from influencing subordinate performance/satisfaction These include: • Subordinate high need for independence • Low subordinate valence for available rewards • Physical distance of leader from subordinates © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 22 Are leaders necessary? Substitutes: Situational factors making... leaders • Culture Japanese: group focus, long-term, humanistic European: individual focus, more humanistic than US USA: individual focus © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 Developing situational theory Situational theory: Theories of leadership taking into consideration important situational factors © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 Developing situational theory Fiedler’s... that leaders need to alter their behaviours depending on one major situational factor—the readiness of followers © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 Developing situational theory Situational leadership model High High R E L A T I O N S H I P Low relationship and low task Delegating Delegating Low Low Selling Selling Participating Participating High relationship and low task High task and... impact of leadership impossible or unnecessary These include: • • • • Satisfying work Able and experienced subordinates Professional orientation of subordinates Routine work, clearly specified methods/feedback © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 23 Leadership & the organisational cycle Entrepreneurial Entrepreneurial Transformational Transformational Collectivity Collectivity Transactional... Iowa, Michigan, Ohio studies – Leadership styles, employee versus jobcentredness © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 25 Lecture summary • Developing situational theory Fiedler Contingency model, Normative model, Situational leadership model, Path–Goal theory • Transformational leadership Charisma, Individual consideration & Intellectual stimulation • Are leaders necessary? Neutralisers, substitutes... contingencyfactors factors ••Personality, Personality,experience, experience,abilities, abilities,needs needs © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 19 Transformational leadership Transformational leaders Leaders who motivate individuals to perform beyond normal expectations by inspiring subordinates to focus on broader missions transcending their own self-interests © 2003 McGraw-Hill Australia Pty... low relationship High task and high relationship Task Task © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Telling Telling High High 17 Developing leadership theory Path–goal theory Theory attempting to explain how leader behaviour can positively influence the motivation and job satisfaction of subordinates © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 Developing leadership theory Path–goal theory: