Lecture management a pacific rim focus chapter 13 leadership

CHAPTER 13
LEADERSHIP

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint

1


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

2


Leadership
Process of influencing others to achieve
organisational goals.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint

3


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

4


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

5


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

6

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

7


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

8

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

9


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

9

(9, 9) Team

Management

Management

Concern for people
1 2 3 4 5 6 7

(1, 9) Country Club

8

Leadership grid

(5, 5) Middle of the
Road Management

(1, 1) Impoverished

(9, 1) Authority–

Management

compliance

1

2

3

4

5

6

7

8

9

Concern for production

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint

11


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