Managment Organization

-Using a standard outline format, outline the chapter.

-Prepare a written definition of the chapter’s key terms listed at the end of the PowerPoint slides, not the chapter

each task in a separate file.  

Chapter 14 – Leadership

Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Leadership

14

1

Explain what leadership is

Describe who leaders are and what effective leaders do

Explain Fiedler’s contingency theory

Describe how path-goal theory works

Explain the normative decision theory

Explain how visionary (that is, charismatic or transformational) leadership helps leaders achieve strategic leadership

Learning Outcomes

LEARNING OUTCOMES

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2

Leaders versus Managers

Leaders

Focus on vision, mission, goals, and objectives

Encourage creativity and risk taking

Have a long-term perspective

Concerned with ends

Managers

Focus on productivity and efficiency

Preservers of status quo

Have a short-term perspective

Concerned with means

LO 1

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Leadership Traits: Trait Theory

Effective leaders possess a similar set of traits or characteristics

Traits: Relatively stable characteristics, such as abilities, psychological motives, or consistent patterns of behavior

LO 2

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4

Leadership Traits: Trait Theory (continued)

Leaders differ from nonleaders based on the following traits:​

Drive

Desire to lead​

Honesty/integrity​

Self-confidence​

Emotional stability​

Cognitive ability and knowledge of the business​

LO 2

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Leadership Behaviors

Initiating structure: Degree to which a leader structures the roles of his or her followers by:

Setting goals

Giving directions

Setting deadlines

Assigning tasks

A leader’s ability to initiate structure affects subordinates’ job performance

LO 2

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6

Leadership Behaviors (continued)

Consideration: Extent to which a leader is friendly, approachable, and supportive and shows concern for employees

Affects subordinates’ job satisfaction

LO 2

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14.1 Blake/Mouton Leadership Grid

LO 2

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Exhibit

8

Situational Approach to Leadership

Assumes that the effectiveness of any leadership style depends on the situation

Fiedler’s contingency theory

Performance can be maximized by matching leaders to the situations that best fit their leadership styles

LO 3

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9

Fiedler’s Contingency Theory

Assumptions

Leaders are effective when their work groups perform well

Leaders are unable to change their leadership styles

LO 3

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Fiedler’s Contingency Theory (continued)

Least Preferred Coworker (LPC)

Questionnaire used to measure leadership style

Score above 64 – Relationship-oriented style

Score 57 or below – Task-oriented style

Score from 58 to 63 – Flexible style

LO 3

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11

Situational Favorableness

Degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members

Factors that determine situational favorableness

Leader-member relations

Task structure

Position power

LO 3

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14.3 Matching Leadership Styles to Situations

LO 3

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Exhibit

Hersey and Blanchard’s Situational Theory

States that leaders need to adjust their leadership styles to match followers’ readiness

Performance readiness: Ability and willingness to take responsibility for directing one’s behavior at work

LO 4

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Hersey and Blanchard’s Situational Theory (continued 1)

Components of readiness – Job readiness and psychological readiness

Combined to produce four different levels of readiness

R1 – Represents insecure people who are neither willing nor able to take responsibility for guiding their own work

LO 4

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Hersey and Blanchard’s Situational Theory (continued 2)

R2 – Represents people who are confident and are willing but not able to take responsibility for guiding their own work

R3 – Represents people who are insecure and are able but not willing to take responsibility for guiding their own work

R4 – Represents people who are confident and willing and able to take responsibility for guiding their own work

LO 4

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Leadership Styles

Telling – Based on the R1 level of readiness

Selling – Based on the R2 level of readiness

Participating style – Based on the R3 level of readiness

Delegating style – Based on the R4 level of readiness

LO 4

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Path-Goal Theory

Leaders can increase subordinate satisfaction and performance by:

Clarifying and clearing the paths to goals

Increasing the number and kinds of rewards available for goal attainment

LO 5

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18

Path-Goal Theory (continued)

Conditions for path clarification, path clearing, and rewards

Leader behavior must be a source of immediate or future satisfaction for followers

Leader behavior must offer something unique and valuable to followers while providing the coaching, guidance, support, and rewards necessary for effective work performance

LO 5

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14.5 Path-Goal Theory

LO 5

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Exhibit

14.6 Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership

Directive LeadershipSupportive LeadershipParticipative LeadershipAchievement-Oriented Leadership
Unstructured tasksStructured, simple, repetitive tasks Stressful, frustrating tasksComplex tasksUnchallenging tasks
Workers with external locus of controlWorkers lack confidenceWorkers with internal locus of control

LO 5

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Exhibit

14.6 Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership (continued)

Directive LeadershipSupportive LeadershipParticipative LeadershipAchievement-Oriented Leadership
Unclear formal authority systemClear formal authority systemWorkers not satisfied with rewards
Inexperienced workersWorkers lack confidenceExperienced workers
Workers with low perceived abilityWorkers with high perceived ability

LO 5

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Exhibit

Normative Decision Theory

Helps leaders determine an appropriate amount of employee participation when making decisions

Decision styles

Autocratic (AI or AII), consultative (CI or CII), and group (GII) decisions

LO 6

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23

Normative Decision Theory (continued)

Right degree of employee participation improves:

Quality of decisions

Extent to which employees accept and are committed to decisions

LO 6

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14.7 Normative Theory, Decision Styles, and Levels of Employee Participation

LO 6

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Exhibit

Normative Theory Decision Rules

Decision rules to increase decision quality

Quality

Leader information

Subordinate information

Goal congruence

Problem structure

LO 6

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Normative Theory Decision Rules (continued)

Rules to increase employee acceptance and commitment to decisions

Commitment probability

Subordinate conflict

Commitment requirement

LO 6

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Visionary Leadership

Creates a positive image of the future that:

Motivates organizational members

Provides direction for future planning and goal setting

Types

Charismatic leadership

Transformational leadership

LO 7

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28

Types of Charismatic Leadership

Ethical charismatics

Charismatic leaders:

Provide developmental opportunities for followers and recognize others’ contributions

Are open to positive and negative feedback

Have moral standards that emphasize the larger interests of the organization or society

Unethical charismatics

Charismatic leaders:

Control and manipulate followers

Do what is best for themselves

Have moral standards that put their interests before everyone else’s

LO 7

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29

Transformational Leadership

Generates awareness and acceptance of a group’s purpose and mission

Gets employees to see beyond their own needs and self-interests

Components

Charismatic leadership or idealized influence

Inspirational motivation

Intellectual stimulation

Individualized consideration

LO 7

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30

Transactional Leadership

Based on an exchange process

Followers are rewarded for good performance and punished for poor performance

Relies heavily on discipline or threats to bring performance up to standards

LO 7

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Key Terms

Leadership

Trait theory

Traits

Initiating structure

Consideration

Leadership style

Contingency theory

Situational favorableness

Leader-member relations

Task structure

Position power

Situational theory

Performance readiness

Path-goal theory

Directive leadership

Supportive leadership

Participative leadership

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KEY TERMS

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Key terms

Achievement-oriented leadership

Normative decision theory

Strategic leadership

Visionary leadership

Charismatic leadership

Ethical charismatics

Unethical charismatics

Transformational leadership

Transactional leadership

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HIST4 | CH6

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KEY TERMS (continued)

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Summary

Leadership is the process of influencing others to achieve group or organizational goals

Situational approaches to leadership include Fiedler’s contingency theory, Hersey and Blanchard’s situational leadership theory, path-goal theory, and normative decision theory

Visionary leadership includes charismatic and transformational

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HIST4 | CH6

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SUMMARY

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Chapter 14

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