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Leadership In Organizations

  1. 1. LEADERSHIP IN ORGANIZATIONS MANAGEMENT 6 th Ed. By: Richard Daft Prepared by: GREGAR DONAVEN E. VALDEHUEZA, MBA Lourdes College Instructor
  2. 2. Learning Objectives <ul><li>Define leadership and explain its importance for organizations. </li></ul><ul><li>Identify personal characteristics associated with effective leaders. </li></ul><ul><li>Explain the five sources of power and how each causes different subordinate behavior. </li></ul><ul><li>Describe the leader behaviors of initiating structure and consideration and when they should be used. </li></ul><ul><li>Describe Hersey and Blanchard’s situational theory and its application to subordinate participation. </li></ul><ul><li>Explain the path-goal model of leadership. </li></ul><ul><li>Discuss how leadership fits the organizational situation and how organizational characteristics can substitute for leadership behaviors. </li></ul><ul><li>Describe transformational leadership and when it should be used. Explain innovative approaches to leadership in the new workplace. </li></ul>
  3. 3. The Nature of Leadership <ul><li>Leadership occurs among people , involves the use of influence , and is used to attain goals . </li></ul><ul><li>Leadership : </li></ul><ul><li>the ability to influence people toward the attainment of goals. </li></ul>
  4. 4. Leadership versus Management <ul><li>Leader qualities </li></ul><ul><li>SOUL </li></ul><ul><li>Visionary </li></ul><ul><li>Passionate </li></ul><ul><li>Creative </li></ul><ul><li>Flexible </li></ul><ul><li>Inspiring </li></ul><ul><li>Innovative </li></ul><ul><li>Courageous </li></ul><ul><li>Imaginative </li></ul><ul><li>Experimental </li></ul><ul><li>Initiates change </li></ul><ul><li>Personal power </li></ul><ul><li>Manager qualities </li></ul><ul><li>MIND </li></ul><ul><li>Rational </li></ul><ul><li>Consulting </li></ul><ul><li>Persistent </li></ul><ul><li>Problem solving </li></ul><ul><li>Tough-minded </li></ul><ul><li>Analytical </li></ul><ul><li>Structured </li></ul><ul><li>Deliberate </li></ul><ul><li>Authoritative </li></ul><ul><li>Stabilizing </li></ul><ul><li>Position power </li></ul>
  5. 5. <ul><li>Major differences between manager and leader qualities relates to the source of power and the level of compliance it engenders within followers. </li></ul>Power : the potential ability to influence others’ behavior.
  6. 6. Position Power <ul><li>Legitimate Power </li></ul><ul><ul><ul><li>Power that stems from a formal management position in an organization and the authority granted to it. </li></ul></ul></ul><ul><li>Reward Power </li></ul><ul><ul><ul><li>Power that results from the authority to bestow rewards on other people. </li></ul></ul></ul><ul><li>Coercive Power </li></ul><ul><ul><ul><li>Power that stems from the authority to punish or recommend punishment. </li></ul></ul></ul>
  7. 7. Personal Power <ul><li>Expert Power </li></ul><ul><ul><ul><li>Power that stems from special knowledge of or skill in the tasks performed by subordinates. </li></ul></ul></ul><ul><li>Referent Power </li></ul><ul><ul><ul><li>Power that results from characteristics that command subordinates’ identification with, respect and admiration for, and desire to emulate the leader. </li></ul></ul></ul>
  8. 8. Empowerment <ul><ul><li>the giving or delegation of power; authority ( www.freedictionary.com ) </li></ul></ul><ul><ul><li>Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways. ( humanresources.about.com ) </li></ul></ul><ul><li>Empowering employees works because total power in the organization seems to increase. Everyone has to say and hence contributes more to organizational goals. </li></ul>
  9. 9. Leadership Traits <ul><li>Traits : </li></ul><ul><li>the distinguishing personal characteristics of a leader, such as intelligence, values, and appearance. </li></ul>
  10. 10. Personal Characteristics of Leaders <ul><li>Physical Characteristics: </li></ul><ul><ul><li>Energy </li></ul></ul><ul><ul><li>Physical stamina </li></ul></ul><ul><li>Intelligence & Ability: </li></ul><ul><ul><li>Intelligence, cognitive ability </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul><ul><ul><li>Judgment, decisiveness </li></ul></ul><ul><li>Personality: </li></ul><ul><ul><li>Self-confidence </li></ul></ul><ul><ul><li>Honesty & integrity </li></ul></ul><ul><ul><li>Enthusiasm </li></ul></ul><ul><ul><li>Desire to lead </li></ul></ul><ul><ul><li>Independence </li></ul></ul><ul><li>Social Characteristics: </li></ul><ul><ul><li>Sociability, interpersonal skills </li></ul></ul><ul><ul><li>Cooperativeness </li></ul></ul><ul><ul><li>Ability to enlist cooperation </li></ul></ul><ul><ul><li>Tact, diplomacy </li></ul></ul><ul><li>Work Related Characteristics: </li></ul><ul><ul><li>Achievement drive, desire to excel </li></ul></ul><ul><ul><li>Conscientiousness in pursuit of goals </li></ul></ul><ul><ul><li>Persistence against obstacles, tenacity </li></ul></ul><ul><li>Social Background: </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Mobility </li></ul></ul>
  11. 11. Autocratic versus Democratic Leaders <ul><li>Autocratic leader </li></ul><ul><ul><li>Leader who tends to centralize authority and rely on legitimate, reward, and coercive power to manage subordinates. </li></ul></ul><ul><li>Democratic leader </li></ul><ul><ul><li>Leader who delegates authority to others, encourages participation, and relies on expert and referent power to influence subordinates. </li></ul></ul>
  12. 12. Leadership Continuum Boss-Centered Leadership Manager presents problem, gets suggestions, makes decision Manager defines limits, asks group to make decision Manager makes decision and announces it Manager “sells” decision Manager presents ideas and invites questions Manager presents tentative decision subject to change Manager permits subordinates to function within limits defined by superior Subordinate-Centered Leadership Area of freedom for subordinates Use of authority by managers
  13. 13. Behavioral Approaches <ul><li>Ohio State Studies </li></ul><ul><li>2 major behaviors: </li></ul><ul><ul><ul><ul><li>Consideration </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The type of behavior that describes the extent to which the leader is sensitive to subordinates, respects their ideas and feelings, and establishes mutual trust. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Initiating structure </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A type of leader behavior that describes the extent to which the leader is task oriented and directs subordinates work activities toward goal attainment. </li></ul></ul></ul></ul></ul>
  14. 14. <ul><li>A leader may have any of four styles: </li></ul><ul><ul><ul><li>high initiating structure – low consideration </li></ul></ul></ul><ul><ul><ul><li>high initiating structure – high consideration </li></ul></ul></ul><ul><ul><ul><li>low initiating structure – low consideration </li></ul></ul></ul><ul><ul><ul><li>low initiating structure – high consideration </li></ul></ul></ul>
  15. 15. <ul><li>Michigan Studies </li></ul><ul><li>Employee-centered leaders: </li></ul><ul><ul><ul><ul><li>Established high performance goals and displayed supportive behavior toward subordinates. </li></ul></ul></ul></ul><ul><li>Job-centered leaders: </li></ul><ul><ul><ul><ul><li>Less concerned with goal achievement and human needs in favor of meeting schedules, keeping costs low, and achieving production efficiency. </li></ul></ul></ul></ul>
  16. 16. <ul><li>The Leadership Grid </li></ul><ul><ul><ul><li>A two-dimensional leadership theory that measures leader’s concern for people and concern for production. </li></ul></ul></ul>
  17. 17. Leadership Grid Figure 9 7 6 5 4 3 2 1 8 1 2 3 4 5 6 7 8 9 Team Management (9,9) Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect. Country Club Management (1,9) Thoughtful attention to the needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo. Middle-of-the-Road Management (5,5) Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. Impoverished Management (1,1) Exertion of minimum effort to get required work done is appropriate to sustain organization membership. Authority-Compliance (9,1) Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree C O N C E R N F O R P R O D U C T I O N C O N C E R N F O R P E O P L E
  18. 18. Contingency Approaches <ul><ul><ul><li>A model of leadership that describes the relationship between leadership styles and specific organizational situations. </li></ul></ul></ul>
  19. 19. <ul><li>Fiedler’s Contingency Theory </li></ul><ul><li>Leadership Style: </li></ul><ul><ul><ul><ul><li>Relationship-oriented leader – concerned with people, as in the consideration style. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Task-oriented leader – primarily motivated by task accomplishment, which is similar to the initiating structure style. </li></ul></ul></ul></ul>
  20. 20. <ul><li>Leadership style was measured with a questionnaire known as the Least Preferred Coworker (LPC) scale. </li></ul><ul><li>example: </li></ul>open - - - - - - - - guarded quarrelsome - - - - - - - - harmonious efficient - - - - - - - - inefficient
  21. 21. <ul><li>Situation: </li></ul><ul><li>Leadership situations can be analyzed in terms of three elements. </li></ul><ul><ul><ul><ul><ul><li>Leader-member relations – refers to group atmosphere and members’ attitude toward and acceptance of the leader. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Task structure – refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Position power – is the extent to which the leader has formal authority over subordinates. </li></ul></ul></ul></ul></ul>
  22. 22. How Leader Style Fits the Situation
  23. 23. <ul><li>A leader needs to know two things in order to use Fiedler’s Contingency Theory: </li></ul><ul><ul><ul><li>The leader should know whether he/she has a relationship- or task-oriented style. </li></ul></ul></ul><ul><ul><ul><li>The leader should diagnose the situation and determine whether leader-member relations, task structure, and position power are favorable or unfavorable. </li></ul></ul></ul>
  24. 24. <ul><li>Hersey and Blanchard’s Situational Theory </li></ul><ul><li>Situational Theory </li></ul><ul><ul><ul><ul><li>A contingency approach to leadership that links the leader’s behavioral style with the task readiness of subordinates. </li></ul></ul></ul></ul>
  25. 25. <ul><li>Four leadership styles: </li></ul><ul><ul><ul><li>Telling style – reflects a high concern for production and a low concern for people. (Directive style) </li></ul></ul></ul><ul><ul><ul><li>Selling style – based on a high concern for both people and production. </li></ul></ul></ul><ul><ul><ul><li>Participating style – based on a combination of high concern for people and low concern for production. </li></ul></ul></ul><ul><ul><ul><li>Delegating style – reflects a low concern for both people and production. </li></ul></ul></ul>
  26. 26. <ul><li>Low Readiness Level  Telling Style </li></ul><ul><li>Moderate Readiness Level  Selling Style </li></ul><ul><li>High Readiness Level  Participating Style </li></ul><ul><li>Very High Readiness Level  Delegating Style </li></ul>
  27. 27. Hersey-Blanchard’s Situational Theory of Leadership
  28. 28. <ul><li>Path-Goal Theory </li></ul><ul><ul><ul><li>A contingency approach to leadership specifying that the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards. </li></ul></ul></ul><ul><li>This model is called a contingency theory because it consists of three sets of contingencies ( leader behavior and style , situational contingencies , and the use of rewards to meet subordinates’ needs .) </li></ul><ul><li>Fiedler Theory assumption would be to switch leaders as situations change . In Path-Goal Theory, leaders switch their behaviors to match the situation . </li></ul>
  29. 29. Leader Roles in the Path-Goal Theory
  30. 30. <ul><li>Fourfold classification of leader behaviors: </li></ul><ul><ul><ul><li>Supportive leadership – involves leader behavior that shows concern for subordinates’ well-being and personal needs. This is similar to the consideration leadership. </li></ul></ul></ul><ul><ul><ul><li>Directive leadership – occurs when the leader tells subordinates exactly what they are supposed to do. This is similar to the initiating-structure leadership. </li></ul></ul></ul><ul><ul><ul><li>Participative leadership – the leader consults with his/her subordinates about decisions. </li></ul></ul></ul><ul><ul><ul><li>Achievement-oriented leadership – occurs when the leader sets clear and challenging goals for subordinates. </li></ul></ul></ul>
  31. 31. <ul><li>Two important situational contingencies are: </li></ul><ul><ul><ul><li>The personal characteristics of group members. </li></ul></ul></ul><ul><ul><ul><li>Include such factors: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Ability </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Skills </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Needs </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Motivations </li></ul></ul></ul></ul></ul><ul><ul><ul><li>The work environment. </li></ul></ul></ul><ul><ul><ul><li>Include such factors: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Degree of task structure – the extent task are well-defined and have explicit descriptions and work procedures. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Nature of formal authority system – the amount of legitimate power used by managers and the extent to which policies and rules constrain employees’ behavior. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The work group – the educational level of subordinates and the quality of relationships among them. </li></ul></ul></ul></ul></ul>
  32. 32. Path-Goal Situations & Preferred Leader Behavior
  33. 33. <ul><li>Substitute for Leadership </li></ul><ul><li>The final contingency approach suggests that situational variables can be so powerful that they actually substitute for or neutralize the need for leadership. </li></ul><ul><ul><li>Substitute – a situational variable that makes a leadership style unnecessary or redundant. </li></ul></ul><ul><ul><li>Neutralizer – a situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors. </li></ul></ul>
  34. 34. Substitute and Neutralizers for Leadership No effect on Substitute for Training/experience Substitute for Substitute for Professionalism Group characteristics: Substitute for No effect on Intrinsic satisfaction No effect on Substitute for Automatic feedback No effect on Substitute for Highly structured task Task characteristics: Neutralizes Neutralizes Physical separation Neutralizes Neutralizes Low positional power No effect on Neutralizes Inflexibility No effect on Substitute for Formalization Substitute for Substitute for Group cohesiveness Organizational variables: People-Oriented Leadership Task-Oriented Leadership Variable
  35. 35. Change Leadership <ul><li>Transactional Leader </li></ul><ul><ul><ul><li>Leader who clarifies the role and task requirements of subordinates, initiate structure, provide appropriate rewards, and try to be considerate to and meet the social needs of subordinates. </li></ul></ul></ul><ul><li>Charismatic Leader </li></ul><ul><ul><ul><li>Leader who has the ability to motivate subordinates to transcend their expected performance. </li></ul></ul></ul>
  36. 36. <ul><li>Impact of charismatic leaders is normally from: </li></ul><ul><ul><li>Stating a lofty vision of an imagined future that employees identify with. </li></ul></ul><ul><ul><ul><ul><li>Vision – an attractive, ideal future that is credible yet not readily attainable. </li></ul></ul></ul></ul><ul><ul><li>Shaping a corporate value system for which everyone stands. </li></ul></ul><ul><ul><li>Trusting subordinates and earning their complete trust in return. </li></ul></ul>
  37. 37. <ul><ul><ul><li>Charismatic leaders tend to be less predictable than transactional leaders. They create an atmosphere of change , and they may be obsessed by visionary ideas that excite, stimulate, and drive other people to work hard. </li></ul></ul></ul><ul><li>Transformational Leader </li></ul><ul><ul><ul><li>A leader distinguished by a special ability to bring about innovation and change by recognizing followers’ needs and concerns, helping them look at old problems in new ways, and encouraging them to question the status quo. </li></ul></ul></ul>
  38. 38. <ul><li>Leading the New Workplace </li></ul><ul><li>Four areas of particular interest for leadership in the new workplace are a new concept referred to as: </li></ul><ul><ul><ul><li>Level 5 leadership </li></ul></ul></ul><ul><ul><ul><li>Women’s ways of leading </li></ul></ul></ul><ul><ul><ul><li>Virtual leadership </li></ul></ul></ul><ul><ul><ul><li>Servant leadership </li></ul></ul></ul>
  39. 39. The Level 5 Leadership Hierarchy Level 2: Contributing Team Member Contributes to the achievement of team goals; works effectively with others in a group. Level 1: Highly Capable Individual Productive contributor; offers talent, knowledge, skills, and good work habits as an individual employee. Level 3: Competent Manager Sets plans and organizes people for the efficient and effective pursuit of objectives. Level 4: The Effective Executive Builds widespread commitment to a clear and compelling vision; stimulates people to high performance. Level 5: The Level 5 Leader Builds an enduring great organization through a combination of personal humility and professional resolve.
  40. 40. <ul><li>Leading the New Workplace </li></ul><ul><li>Four areas of particular interest for leadership in the new workplace are a new concept referred to as: </li></ul><ul><ul><ul><li>Level 5 leadership </li></ul></ul></ul><ul><ul><ul><li>Women’s ways of leading </li></ul></ul></ul><ul><ul><ul><li>Virtual leadership </li></ul></ul></ul><ul><ul><ul><li>Servant leadership </li></ul></ul></ul>
  41. 41. <ul><li>Recent research indicates that women’s style of leadership is particularly suited to today’s organizations. </li></ul><ul><li>Female managers score significantly higher than men on abilities such as motivating others, fostering communication, and listening. </li></ul><ul><li>Interactive leadership </li></ul><ul><ul><ul><li>A leadership style characterized by values such as inclusion, collaboration, relationship building, and caring. </li></ul></ul></ul>
  42. 42. <ul><li>Leading the New Workplace </li></ul><ul><li>Four areas of particular interest for leadership in the new workplace are a new concept referred to as: </li></ul><ul><ul><ul><li>Level 5 leadership </li></ul></ul></ul><ul><ul><ul><li>Women’s ways of leading </li></ul></ul></ul><ul><ul><ul><li>Virtual leadership </li></ul></ul></ul><ul><ul><ul><li>Servant leadership </li></ul></ul></ul>
  43. 43. <ul><li>People who excel as virtual leaders tend to be open-minded and flexible, exhibit positive attitudes that focus on solutions rather than problems, and have superb communication, coaching, and relationship-building skills. </li></ul><ul><li>Essentials in virtual environment: </li></ul><ul><ul><ul><ul><li>Building trust </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Maintaining open lines of communication </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Caring about people </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Being open to subtle cues from others </li></ul></ul></ul></ul>
  44. 44. <ul><li>Leading the New Workplace </li></ul><ul><li>Four areas of particular interest for leadership in the new workplace are a new concept referred to as: </li></ul><ul><ul><ul><li>Level 5 leadership </li></ul></ul></ul><ul><ul><ul><li>Women’s ways of leading </li></ul></ul></ul><ul><ul><ul><li>Virtual leadership </li></ul></ul></ul><ul><ul><ul><li>Servant leadership </li></ul></ul></ul>
  45. 45. <ul><li>Servant leadership, first described by Robert Greenleaf, is leadership upside down because leaders transcend self-interest to serve others and the organization. </li></ul><ul><li>Servant leader </li></ul><ul><ul><ul><li>A leader who works to fulfill subordinates’ needs and goals as well as to achieve the organization’s larger mission. </li></ul></ul></ul>
  46. 46. END <ul><li>Questions? </li></ul><ul><li>Suggestions? </li></ul><ul><li>Clarifications? </li></ul><ul><li>Violent reactions? </li></ul><ul><li>Everything’s clear? </li></ul><ul><li>HAVE A GOOD DAY!!!  </li></ul>