Leadership in Organization

Leadership in Organization - Leadership in Organization...

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Unformatted text preview: Leadership in Organization Leadership in Organization Chapter 16 The Nature of Leadership There is probably no topic more important to business success today than leadership. Among all the ideas and writings about leadership , three aspects stand out – people, influence , and people, goals. goals. Leadership occurs among people, involves the use of influence, and goals. Influence means that the relationship among people is not passive. Leadership – the ability to influence people toward the Leadership attainment of organizational goals. attainment Leadership versus Management Because management power comes from organizational structure, it promotes stability, order, and problem solving within the structure. Leadership power, on the other hand , comes from personal sources, promotes vision, creativity, and change in the organization. It is important to remember that some people can exhibit a combination of leader/manager qualities. One of the major differences between the leader and the manager relates to their source of power and the level of compliance it engenders within followers Different qualities attributed to leaders and managers LEADER LEADER Manager Soul Mind Visionary Courageous Rational Consulting Passionate Imaginative Persistent Analytical Creative Experimental Structured Deliberate Flexible Initiates change Tough­minded Stabilizing Inspiring Innovative Authoritative Personal power Position power Position Power The manager’s position gives him the power to reward, or punish subordinates in order to influence their behavior. Legitimate power, reward power, and coercive power are all forms of position power used by managers to change employee behavior. Legitimate power – the power that stems from a formal management position in an organization and the authority granted to it. Position Power Reward Power – the power that results from the authority to reward others/pay increases, promotions, praise, attention, recognition/ Coercive power – the power that stems from the authority to punish or recommend punishment. Managers have coercive power when they have the right to fire or to demote employees, criticize,or withdraw pay increases. Coercive power most often generates resistance. Personal Power In contrast to the external sources of position power, personal power most often comes from internal sources, such as a person’s special knowledge or personality characteristics. Subordinates follow a leader because of the respect, admiration , or caring they feel for the individual and his ideas. Two types of personal power are expert power and referent power Personal Power Expert power­ the power that stems from special knowledge of or skill in the tasks performed by subordinates. Leaders at supervisory levels often have experience in the production process. At top management levels, however , leaders may lack expert power because subordinates know more about technical details than they do. Personal Power Referent power­ the power that results from characteristics that command subordinates’ identification with, respect and admiration for, and desire to emulate the leader. When workers admire a supervisor because of the way he deals with them , the influence is based on referent power Leadership Traits Traits are the distinguishing personal characteristics of a leader, such as intelligence, values, and appearance. Generally, research found only a weak relationship between personal traits and leader success. The appropriateness of a trait or set of traits depends on the leadership situation.The same traits do not apply to every organization or situation Personal characteristics of Leaders Physical characteristics. Activity; Energy Social background. Mobility Intelligence and ability. Judgment,decisiveness; Knowledge; Fluency of speech Personality. Alertness; Originality,creativity; Personal integrity, ethical conduct;Self­confidence Work­related characteristics. Achievement drive,desire to excel; Drive for responsibility;Task orientation Social characteristics. Ability to enlist cooperation; Popularity, prestige; Sociability;Tact, diplomacy Autocratic versus Democratic Leaders An Autocratic leader is one who tends to centralize authority and rely on legitimate, reward, and coercive power. A Democratic leader delegates authority to others , encourages participation , and relies on expert and referent power to influence subordinates. One leader might be autocratic/ boss centered/,another democratic / subordinate centered/, and a third a mix of two styles. Leaders may adjust their styles depending on the situation. Behavioral Approaches The autocratic and democratic styles suggest that it is the “behavior” of the leader rather than a personality trait that determines leadership effectiveness. Researchers at Ohio State University identified two major behaviors: 1. Consideration – the extent of which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust 2. Initiating structure – the extent to which the leader is task oriented and directs subordinate work activities toward goal attainment. Behavioral Approaches Michigan Studies. The most effective supervisors were those who focused on the subordinates’ human needs in order to “ build effective work groups with high performance goals.” The Michigan researches used the term employeecentered leaders for leaders who established high performance goals and displayed supportive behavior toward subordinates. The less effective leaders were called job-centered job-centered leaders; these tended to be less concerned with goal leaders achievement and human needs in favor of meeting schedules, keeping costs low, and achieving production efficiency. Fielder’s Contingency Theory The basic idea is simple: Match the leader’s style with Match the situation most favorable for his success. By the diagnosing leadership style and the organizational situation , the correct fit can be arranged. Leadership Styles. A relationship­oriented leader is concerned with people, as in the consideration style described earlier. A task –oriented leader is primarily motivated by task accomplishment, which is similar to the initiating structure style described earlier Fielder’s Contingency Theory Situations. 1. Leader-member relations refers to group atmosphere and members’ attitude toward and acceptance of the leader /good, poor/.When subordinates trust, respect, and have confidence in the leader, leader –member relations are considered good. When subordinates distrust, do not respect, and have little confidence in the leader, leader­member relations are poor. Fielder’s Contingency Theory 2. Task structure refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear , explicit goals /high, low/.Routine, well defined tasks, such as those of assembly­line workers, have a high degree of structure. Creative tasks have a low degree of structure. When task structure is high, the situation is considered favorable to the leader; when low, the situation is less favorable. Fielder’s Contingency Theory 3. Position power is the extent to which the leader has formal authority over subordinates / strong, weak/. Position power is strong when the leader has the power to plan and direct the work of subordinates, evaluate it, and reward or punish them. When position power is strong, the situation is considered favorable for the leader; when weak, the situation is unfavorable. Fielder’s Contingency Theory Combining the three situational characteristics yields a list of some leadership situations. Most favorable situation ­ leader­member relations are good, task structure is high, and leader position power is strong. Fielder’s Contingency Theory Most unfavorable situation – leader­member relations are poor , task structure is low, and leader position power is weak. All other situations represent intermediate intermediate degrees of favorableness for the leader /e.g., degrees good –low­strong; poor­high­weak, etc/ Fielder’s Contingency Theory Task oriented leaders are more effective when the situation is either highly favorable or highly unfavorable Relationship­oriented leaders are more effective in situations of moderate favorability The task­oriented leader excels in the favorable situation because everyone gets along, the task is clear,and the leader has power; similarly, if the situation is highly unfavorable to the leader, a great deal of structure and task direction is needed. A strong leader defines task structure and can establish authority over subordinates. Path­Goal Theory Another contingency approach to leadership is called the path-goal theory.According to the path­goal theory , the leader’s responsibility is to increase subordinates’ motivation to attain personal and organizational goals. The leader increases their motivation by either (1) clarifying the subordinates’ path to the rewards that are available or (2) increasing the rewards that the subordinates value and desire. The path­goal theory suggests a fourfold classification of leader behaviors: Path­Goal Theory 1. Supportive leadership involves leader behavior that shows concern for subordinates’ well­being and personal needs. Leadership behavior is open, friendly, and approachable. Supportive leadership is similar to the consideration leadership described earlier 2. Directive leadership occurs when the leader tells subordinates exactly what they are supposed to do. Directive leadership behavior is similar to the initiating­structure leadership style described earlier. Path­Goal Theory Participative leadership means that the leader consults with his subordinates about decisions.Leader behavior includes asking for opinions and suggestions, encouraging participation in decision making, and meeting with subordinates in their workplaces. Achievement­oriented leadership occurs when the leader sets clear and challenging goals for subordinates. Leader behavior stresses high­quality performance and improvement over current performance. The four types of leader behavior are not considered ingrained personality traits as in the Fielder theory; rather , they reflect types of behavior that every Change Leadership What kind of people can lead an organization through major changes? Two types of leadership that can Two have a substantial impact are charismatic and transformational. These types of leadership are best understood in comparison to transactional leadership. Transactional leaders clarify the role and task Transactional requirements of subordinates , initiate structure, provide appropriate rewards , and try to be considerate to and meet the social needs of subordinates.The transactional leader’s ability to satisfy subordinates may improve productivity. They are hardworking, tolerant, and fair minded. Change Leadership Charismatic leaders. Charismatic leadership goes beyond transactional leadership techniques. Charisma Charisma has been referred to as has “ a fire that ignites followers’ energy and commitment, producing results above and beyond the call of duty”. producing The charismatic leader has the ability to inspire and motivate people to do more than they would normally do,despite obstacles and personal sacrifice. Charismatic leaders have an emotional impact on subordinates. Charismatic leaders include Mother Theresa,Martin Luther King, Adolf Hitler, Stalin… Charismatic Leaders Charisma can be used for self­serving purposes that lead to deception, manipulation,and exploitation of others. When charismatic leaders respond to organizational problems in terms of the needs of the entire group rather than their own emotional needs , they can have a powerful , positive influence on organizational performance. Charismatic leaders tend to be less predictable than transactional leaders. Transformational Leaders Transformational leaders are similar to charismatic Transformational leaders, but are distinguished by their special ability to bring about innovation and change. bring They have the ability to lead changes in the organization’s mission, strategy, structure, and culture, as well as to promote innovation in products and technologies. They do not rely solely on tangible rules and incentives. They focus also on intangible qualities such as vision, shared values, and ideas to build relationships, and find common ground to enlist followers in the change process Leading the Learning Organization Leadership is the only means by which a Leadership company can change into a learning organization. Leaders in a learning organization organization. have three distinct roles: 1. Create a shared vision. A shared vision is a picture of an ideal future for the organization. The vision includes what the organization will look like, performance outcomes, and underlying values. Leading the Learning Organization 2. Design structure. The leader puts in place an organizational structure, including policies, strategies, and formats that support the learning organization. The leader helps people understand that organization is continuous, with people taking on new roles and learning new skills. 3. Servant leadership is a leader who works to 3. Servant fulfill subordinates’ needs and goals as well as to achieve the organization’s larger mission. Learning organizations are built by servant leaders who devote themselves to others and to the organization’s mission. ...
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This note was uploaded on 06/05/2011 for the course MANAGMENT 25 taught by Professor Fu during the Spring '11 term at Asbury.

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