Bài giảng Principles of Management - Chapter 16 Effective Leadership

chapter 16Effective LeadershipMcGraw-Hill/IrwinPrinciples of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.Learning ObjectivesExplain why good leadership is critical for success as a manager.Summarize the main theoretical approaches to leadership.Identify the behaviors and skills that are commonly associated with effective leadership.Explain how the right approach to leadership might be influenced by important contingencies.Discuss the differences between transformational and transactional leadership.Managing & Leading Leaders Managers“Doing the right things”“Doing things right”Focuses on preserving the status quoFocus on vision, mission, and goalsCEO PayAVERAGE annual CEO pay is $10.5 million, 369 times average worker pay of $28,310. In 1970, before the big run-up, the multiple was 28:1, a ratio that would make today’s average worker pay $374,800.Put another way: If CEO pay were frozen now, it would take workers 66 years of 4% annual raises to get back to 1/28th of what the boss makes.Source: Business Week, October 30, 2006Question All manager are leaders and all leaders are managers. Do you agree? Explain.Organizational Challenges The challenges facing organizations and leaders are becoming increasingly complex. An internet survey by the Center for Creative Leadership revealed the following:Type of ChallengeFrequency PercentageTechnical Challenge43%Adaptive Challenge37%Critical Challenge10%Source: Changing Nature of Leadership Research Report, The Center for Creative LeadershipPerspectives on LeadershipEffective LeadershipPower-influence perspectiveTrait (competency) perspectiveBehavior perspectiveContingency perspectiveTransformational perspectivePerspectives of LeadershipPower-influence approach – attempts to explain leadership effectiveness in terms of the amount of power possessed by a leader.Trait/competency perspective – identifies the traits and competencies of effective leadersBehavior approach – asserts that certain behaviors are related to leadership effectivenessPerspectives of LeadershipContingency perspective – argues that the appropriate behaviors for a leader to adopt depend on context, and that will work in some situations will not work in othersTransformational perspective – suggests that effective leaders “transform” organizations through their visionThe Power-Influence PerspectiveEffective leaders rely on:the personal power that flows from expertisea network of alliesindividual attributes power flowing from their positionWhat Makes Leaders Great?Self-awarenessPersonal convictionCourageCreativityCuriosityAbility to inspireAbility to listenAbility to innovateEagerness to experienceWillingness to reflectSource: Biz Ed, September/October, 2005Skill Sets Required by Academic LeadersSource: Biz Ed, March/April, 2002Selling, marketing, and public relations 69%Global business understanding 67% Human resource and staffing 57%Risk, cost, and financial management 51%Project management 48%E-business and IT knowledge 42%Negotiation and employment law 27%Skill set % of Respondents indicating as ImportantCompetency PerspectiveTraits that can be acquired through learningStrategic ThinkingEmotional IntelligenceCharismaPower MotivationAchievement MotivationEmotional IntelligenceSelf-awarenessSelf-regulationMotivationEmpathySocial skillsLimitations & Implications of Competency PerspectiveNot all of the traits are equally importantNot all great leaders demonstrate all traitsImportance of traits is context dependentBehavior PerspectiveAssumption: Certain leadership behaviors result in greater commitment on the part of subordinates and hence higher performance in pursuit of organization goalsPeople-oriented behavior – A leadership style that includes showing mutual trust and respect for subordinates, demonstrating genuine concern for their needsTask-oriented behavior – The style of leaders who assign employees to specific tasks, clarify their work duties and procedures, ensure that they follow company rules, and push them to reach their performance capacityFiedler’s Leadership TheoryLeadership style *People-oriented *Task-orientedOutcomes *Team, unit, or organization performanceContingencies *Leader-member relations *Task structure *Position powerPredictions of Fiedler’s TheoryGoodPoorLeadership effectivenessFavorable Moderately favorable Unfavorable Situation Situation SituationTask-oriented leadersPeople-oriented leadersWeaknesses of Fiedler’s TheorySimplisticClassification into two broad types seems an unwarranted generalizationDivision into people-oriented and task-oriented ignores the fact that some leaders can exhibit bothUnrealistic to “reward” an effective leader by removing himAssumes that leaders cannot change their stylePath-Goal TheoryClarify path Clear path Offer rewardsLeadership styles *Directive *Supportive *Participative *Achievement-orientedNature of work environment *Task structure *Team dynamics *Formal powerPersonal characteristics of subordinates *Skills *Needs *MotivationsEmployee goalsPath to goal attainmentOutcomes (goal attainment)Question As a manager, Caitlyn always sets high goals for her subordinates, has high expectations for their performance, and displays confidence in them, encouraging and helping them to take on greater responsibilities. According to the Path-Goal theory, Caitlyn exhibits which of these leadership styles?Achievement-oriented leadershipSupportive leadershipDirective leadershipParticipativePath-Goal PredictionsIf followers lack confidence, supportive leadership will increase subordinates’ confidence that they can achieve goals, which raises performanceIf the task of subordinates is ambiguous, directive leadership may be preferred because it helps clarify the path subordinates must follow, which again increases performancePath-Goal PredictionsIf the task of subordinates is standardized and dull, achievement-oriented leadership can motivate subordinates by setting high goals and expressing confidence in their abilitiesIf the rewards offered to the employees are inappropriate, participative leadership may allow the leader to clarify the needs of subordinates and change rewards to improve performanceLimitations of Path-Goal Theory The implicit assumption that a leader can adopt only one style at a time seems simplisticThere is still no strong empirical consensus that path-goal theory does a good job of explaining what is required for effective leadershipIt has a narrow definition of leadership effectivenessOther potentially important factors of the leadership process are ignoredIt provides only a partial definitionBehaviors of Transformational LeadersTransformational LeadershipCreating an enduring organizationModeling desired behaviorsEmpowering employeesLeading with integrityMeaningful changes in strategy and organizationEnvisioning a new futureCommunicating persistentlyGender Differences in LeadershipWomen: have more people-oriented, participative leadershipare more relationship-oriented, cooperative, nurturing, and emotional in their leadership rolesGenerally, studies have shown that men and women do not differ in either task-oriented or people-oriented leadershipHowever, women do adopt a participative style more readilyOverall, subordinates have expectations from their leaders as to how they should act, and if the leader deviates from this belief negative evaluations may occurGlass Ceiling Proportion of Female CEO’s, 2000 to 2016:200020062010 (est.)2016 (est.)0.06%2%4.90%6.20%Source: Business Week, December 4, 2006