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    9chapter

    Business Essentials, 7th Edition

    Ebert/Griffin

    2009 Pearson Education, Inc.

    Leadership and decision-making

    PowerPoint Presentation prepared by

    Carol Vollmer Pope Alverno College

    Instructor LecturePowerPoints

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    The Nature of Leadership

    What Is Leadership?

    The processes and behaviors used by someone,

    such as a manager, to motivate, inspire, and

    influence the behaviors of others.

    Are Leadership and Management the Same?

    No. A person can be a manager, a leader, both, or

    neither.

    2009 Pearson Education, Inc.

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    Source: The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from A Force for Change:

    How Leadership Differs from Management, by John P. Kotter, 1990. Copyright 1990 by John P. Kotter, Inc.

    TABLE 9.1 Kotters Distinctions Between Management

    and Leadership

    2009 Pearson Education, Inc.

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    Early Approaches to Leadership

    Trait Approaches to Leadership

    Focused on identifying essential leadership traits

    Intelligence, dominance, self-confidence, energy, activity (versus

    passivity), and knowledge about the job

    Physical traits (height, body shape, handwriting)

    Yielded inconsistent results

    Recent research has focused on a limited set

    of traits

    Emotional intelligence, mental intelligence, drive, motivation,

    honesty and integrity, self-confidence, knowledge of the business,and charisma

    2009 Pearson Education, Inc.

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    Early Approaches to Leadership (contd)

    Behavioral Approaches to Leadership Focused on the behaviors of effective leaders

    versus ineffective leaders

    Assumed that the behaviors of effective leaderswould be the same across all situations

    Task-focused leader behaviors related to increasing theperformance of employees

    Employee-focused leader behaviors related to job

    satisfaction, motivation, and well-being of employees

    2009 Pearson Education, Inc.

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    The Situational Approach to Leadership

    Situational Approach

    Assumes that appropriate leader behavior varies

    from one situation to another

    Continuum of leadership behavior

    Considers influences of the characteristics of the leader,

    subordinates, and the situation

    Continuum ranges from having the leader make

    decisions alone (i.e., task-focused) to having employees

    make decisions with only minimal guidance from the

    leader

    2009 Pearson Education, Inc.

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    Source: Harvard Business Review. An exhibit from How to Choose a Leadership Pattern by Robert Tannenbaum and

    Warren Schmidt (May-June 1973). Copyright 1973 by the President and Fellows of Harvard College; all rights reserved.

    FIGURE 9.1 The Leadership Continuum

    2009 Pearson Education, Inc.

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    Leadership Through the Eyes of Followers

    Transformational Leadership

    The set of abilities that allows a leader to

    recognize the need for change, to create a vision

    to guide that change, and to execute the change

    effectively

    Transactional Leadership

    Basic management involving routine, regimentedactivities (leading during a period of stability)

    2009 Pearson Education, Inc.

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    Leadership Through the Eyes of Followers (contd)

    Charisma

    Charisma: A form of interpersonal attraction that inspires

    support and acceptance

    Charismatic Leadership Influence based on the leaders personal charisma

    2009 Pearson Education, Inc.

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    Special Issues in Leadership

    Leadership Substitutes Individual, task, and organizational characteristics

    that tend to outweigh the need for a leader toinitiate or direct employee performance

    Leadership Neutralizers

    Various factors that neutralize leadershipbehaviors or render them ineffective

    The norms of strongly cohesive groups Elements of the job

    Organizational factors

    2009 Pearson Education, Inc.

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    TABLE 9.2 Leadership Substitutes and Neutralizers

    2009 Pearson Education, Inc.

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    The Changing Nature of Leadership

    Leader as Coach From directive overseer to mentor

    Gender

    Understanding the differences and dynamics inthe approaches of women and men to leadership

    Cross-Cultural Leadership

    The effects of an individuals native culture on hisor her approach to leadership when functioning in

    another culture

    Collectivism versus individualism

    2009 Pearson Education, Inc.

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    Emerging Issues in Leadership

    Strategic Leadership

    Leaders ability to understand the complexities of the

    organization and its environment and lead change so as

    to enhance organizational competitiveness

    Ethical Leadership

    Leaders ability to maintain high ethical standards for

    personal conduct, unfailingly exhibit ethical behavior,

    and hold others to the same standards

    Virtual Leadership

    Leading through effective communication and

    maintaining collaborative relationships at a distance

    2009 Pearson Education, Inc.

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    Leadership, Management,

    and Decision-Making

    Rational decision-making

    Recognizing and defining the decision situation

    Identifying alternatives Evaluating alternatives

    Selecting the best alternative

    Implementing the chosen alternative

    Following up and evaluating the results

    2009 Pearson Education, Inc.

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    FIGURE 9.2 Steps in the Rational Decision-Making

    Process

    2009 Pearson Education, Inc.

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    Behavioral Aspects of Decision-Making

    Political Forces in Decision-Making

    Coalition: An informal alliance of individuals or groupsformed to achieve a common goal

    Intuition

    An innate belief about something, often without consciousconsideration

    Escalation of Commitment

    Staying with a chosen course of action, even when it

    appears to have been wrong

    Risk Propensity

    The extent to which a decision-maker is willing to gamblewhen making a decision

    2009 Pearson Education, Inc.