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Introduction to ManagementIntroduction to ManagementWeek 5Week 5

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TopicsTopics

What do we want from leaders?What do we want from leaders?Leading/ManagingLeading/Managing

LeadershipLeadershipSources of PowerSources of Power

Approaches to leadershipApproaches to leadershipTraitsTraitsStylesStyles

Skills and StrategiesSkills and StrategiesTransformational LeadershipTransformational Leadership

MotivatingMotivatingMaslow’s Need HierarchyMaslow’s Need Hierarchy

Types of MotivationTypes of MotivationEmpowermentEmpowermentJob SatisfactionJob Satisfaction

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What do we want from leaders?What do we want from leaders?

1. Those who challenge conventional beliefs and practices, and they create change

2. They appeal to people’s values and motivate them to care about an important mission

3. They give people access to information and give them the power to perform their full potential

4. They don’t just tell people what to do; they are living examples of the ideals they believe in

5. They show appreciation, provide rewards, and use various approaches to motivate people in positive way

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VisionVision

Mental image of a possible and desirable future

state of the organization.

Expresses the leader’s ambitions for the

organization.

Creates high performance aspirations, the nature

of corporate or business strategy, or the kind

of workplace.

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VisionVision

1. Necessary for effective leadership

2. Can be developed for any job, work unit or organization

3. Managers who do not develop into strong leaders, fail to develop a clear vision

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Leading and ManagingLeading and Managing

Leading-setting the direction for the

firm-inspiring people to attain

the vision-keep people focused on

moving the organization toward its ideal future, motivating people to overcome any obstacles

Managing-deal with ongoing day-to-

day complexities-requires planning and

budgeting routines-requires structuring the

organization, staffing it with capable people, and monitoring activities

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LeadershipLeadership

Supervisory Leadership: provides guidance, support and corrective feedback for day-to-day activities

Strategic Leadership: gives purpose and meaning to organizations by anticipating and envisioning a viable future for the organization and working with others to initiate changes that create such a future

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Sources of Sources of PowerPower

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Sources of PowerSources of Power

1. Legitimate power – right or authority to tell others what to do

2. Reward power – influences others because of control over rewards

3. Coercive power – has control over punishment

4. Referent power – personal characteristics that appeal to others

5. Expert power – expertise or knowledge that others believe that can learn from or gain from

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Traditional Approaches to LeadershipTraditional Approaches to Leadership

1. Trait approach – focuses on individual leaders and tries to determine the personal characteristics that great leaders share

2. Behavioral approach – attempts to identify what good leaders do (i.e., what behaviors they exhibit)

3. Situational approach – proposes that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation

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Important Traits for LeadersImportant Traits for Leaders

Drive: characteristics that reflect a high level of effort, including high need for achievement, constant striving for improvement, ambition, energy, tenacity, and initiative.

Leadership motivation: extraverted, high need for power. Integrity: Correspondence between actions and words,

honesty, and credibility. Self-confidence: ability to overcome obstacles, make

decisions despite uncertainty, and instill confidence in others.

Knowledge of the business: high level of knowledge about their industries, companies, and technical matters, intelligence to interpret vast quantities of information, and acquired expertise in matters relevant to the organization

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Decision StylesDecision Styles

Autocratic leadership: a form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group

Democratic leadership: a form of leadership in which the leader solicits input subordinates

Laissez-faire: leader essentially made no decisions, led to more negative attitudes and lower performance.

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Situational ApproachSituational Approach

Universally important traits and behaviors do not exit, and that effective leadership behavior varies from situation to situation.

Leader should analyze the situation then decide what to do.

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Substitutes for LeadershipSubstitutes for Leadership

Factors in the workplace that can exert the same influence on employees as leaders would provide.

Group maintenance substitutes – closely knit groups, job is inherently satisfying

Task performance substitutes – people have a lot of experience and ability, rules and procedures are rigid

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Contemporary PerspectivesContemporary Perspectives

Charismatic leader – dominant, exceptionally self-confident, and have a strong conviction of moral righteousness

Transformational leader – motivates people to transcend their personal interests for the good of the group

Transactional leader – manage through transactions, using their legitimate, reward and coercive powers to give commands and exchange rewards for services rendered

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Generating excitement…Generating excitement…

Transformational leaders generate

excitement by:

◦ Charisma◦ Individualized attention◦ Intellectually stimulation

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Skills and Strategies of Transformation Skills and Strategies of Transformation LeadersLeaders

1. Having a vision – leaders have a goal, an agenda, or a results orientation that grabs attention

2. Communicating their vision – through words, manner, or symbolism, leaders relate a compelling image of the ultimate goal

3. Building trust – being consistent, dependable, and persistent, leaders position themselves clearly by choosing a direction and staying with it, thus projecting integrity

4. Having positive self-regard – leaders do not feel self-important or complacent, but rather recognize their personal strengths, compensate for their weaknesses, nurture and continually develop their talents, and know how to learn from failure.

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Types of Transformational LeadershipTypes of Transformational Leadership

Level 5 leadership: a combination of strong professional will and personal humility that builds enduring greatness.

Authentic leadership: a style in which the leader is true to himself or herself while leading.

Psuedotransformational leadership: leaders who talk about positive change but allow their self-interest to take precedence over followers’ needs.

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Nontraditional Leadership RolesNontraditional Leadership Roles

Servant leader - a leader who serves others’ needs while strengthening the organization.

Bridge leader – a leader who bridges conflicting value systems or different cultures.

Shared leadership – rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time

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Good leaders Need CourageGood leaders Need Courage

Seeing things as they are and facing them head-on, making no excuses and harboring no wishful illusions

Saying what needs to be said to those who need to hear it Persisting despite resistance, criticism, abuse, and setbacks

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Motivating for PerformanceMotivating for Performance

Motivation – forces that energize, direct and sustain a person’s efforts.

Organizations want to motivate people to:◦ Join the organization◦ Remain in the organization◦ Come to work regularly◦ Work hard to achieve high output and high quality◦ Exhibit good citizenship by being committed and performing

above and beyond the call of duty to help the company

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Key Consequences of BehaviorKey Consequences of Behavior

1. Positive reinforcement - applying a consequence that increases the likelihood that the person will repeat the behavior that led to it.

2. Negative reinforcement - removing or withholding an undesirable consequence.

3. Punishment - administering an aversive consequence.

4. Extinction - withdrawing or failing to provide a reinforcing consequence.

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What do you want to reinforce?What do you want to reinforce?

Solid solutions instead of quick fixes Risk taking instead of risk avoiding Applied creativity instead of mindless conformity Decision action instead of paralysis of analysis Smart work instead of busywork Simplification instead of needless complication Quietly effective behavior instead of squeaky

wheels Quality work instead of fast work Loyalty instead of turnover Working together instead of working against

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RewardsRewards

Should support the firm’s strategy Should relate people’s performance in relation to strategic

objectives Can be nonmonetary (intellectual challenge, greater

responsibility, autonomy, recognition, flexible benefits, and greater influence over decisions)

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Maslow’s Need HierarchyMaslow’s Need Hierarchy

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Maslow’s Need HierarchyMaslow’s Need Hierarchy

1. Physiological – food, water, sex, and shelter

2. Safety – protection against threat and deprivation

3. Social – friendship, affection, belonging, and love

4. Ego – independence, achievement, freedom, status, recognition, and self-esteem

5. Self-actualization – realizing one’s full potential, becoming everything one is capable of being

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Types of MotivationTypes of Motivation

Extrinsic motivation – rewards given to a person by the boss, the company or some other person

Intrinsic motivation – rewards a worker derives directly from performing the job itself

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Designing Motivating JobsDesigning Motivating Jobs

Job rotation: changing from one routine task to another to alleviate boredom

Job enlargement: Giving people additional tasks at the same time to alleviate boredom

Job enrichment: Changing a task to make it inherently more rewarding, motivating, and satisfying

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What is empowerment?What is empowerment?

The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization.

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Why empowerment encourages Why empowerment encourages employees?employees?

They perceive meaning in their work; their jobs with skill They feel competent, or capable of performing their jobs with

skill They have a sense of self-determination, of having some

choice in regard to the tasks, methods, and pace of their work They have an impact – that is, they have some influence over

important outcomes

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Job SatisfactionJob Satisfaction

Job dissatisfaction leads to: higher turnover, higher absenteeism, less good citizenship among employees, etc.

Dissatisfied workers negatively impact organizations, especially relationship-oriented service organizations

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