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LEADERSHIP
Chapter 14
Generosa, Morales, Sia, Pineda
WHAT IS LEADERSHIP?
The process of influencing others to
achieve group or organizational goals.
LEADERS VERSUS MANAGERS
Leaders
• Are concerned with doing
the right thing.

Managers
• Are concerned with doing
things right.

• Focus on vision, mission,
goals, and objectives.

• Focus on productivity and
efficiency.

• Take a long term view.

• Have a relatively shortterm perspective.
LEADERS VERSUS MANAGERS
Leaders
• Concerned with
expanding people’s
choice and options.

Managers
• Concerned with control
and limiting the choice of
others.

• Inspire and motivate
others to find their own
solutions.

• Solve problems so that
others can do their work.

• More concerned with
ends, what gets done.

• More concerned with
means, how things done.
MANAGERS are critical to
getting out the day-to day work.
LEADERS are critical to inspiring
employees and setting the
organization’s long term
direction.
Leadership Traits
• A leadership theory that holds that
effective leaders possess a similar set of
traits or characteristics.
• Is also known as the “great person”
theory.
• TRAITS - a relatively stable characteristics
such as abilities, psychological motives,
and consistent patterns of behavior.
LEADERS are different from NONLEADERS
in the following traits:
Drive
The desire to lead
Honesty/integrity
Self-confidence
Emotional stability
Cognitive ability
Knowledge of the business
DRIVE
Refers to a high level of effort and is
characterized by achievement,
motivation, initiative, energy, and tenacity.
DESIRE TO LEAD
They want to be in charge and think
about ways to influence or convince
others.
HONESTY/ INTEGRITY
HONESTY being truthful with others, is a
cornerstone of leadership.
INTEGRITY is the extent to which leaders
do what they say or they will do.
SELF-CONFIDENCE
Believing in one’s abilities
Are more decisive and assertive.
EMOTIONAL STABILITY
Refers to the state of being able to
have the appropriate feelings about
the common experiences and being
able to act in a rational manner.
COGNITIVE STABILITY
Refers to the individual’s capacity to
think, reason, and problem solved.
KNOWLEDGE OF THE
BUSINESS
Understand the key technological
decisions and concerns facing
their companies.
LEADERSHIP BEHAVIORS
INITIATING STRUCTURE
The degree to which a leader structures
the role of followers by setting goals,
giving directions, setting deadlines, and
assigning tasks.
CONSIDERATION
The extent to which a leader is friendly,
approachable, and supportive and show
concerns for employees.
Specific leader consideration
behaviors include:
 Listening to employees’ problems and
concerns.
 Consulting with employees before making
decisions.
 Treating employees as equals.
FIEDLER’S
CONTIGENCY THEORY
shows the relationship between
the leader’s orientation or style
and group performance under
differing situational conditions.
Fiedler assumes that..
Leaders style is fixed and can be
measured by the least preferred
co-worker (LPC) questionnaire
Least Preferred Co-Worker
(LPC) Questionnaire
High Score
• Relationship
Oriented

Low Score
• Task Oriented
RELATIONSHIP ORIENTED
Are better leaders under
favorable situations.
TASK ORIENTED
Are better leaders in highly
favorable and unfavorable
situations.
Situational Favorableness
 LEADER-MEMBER RELATIONS
Which refers to how well and there is a
friendly work atmosphere
 TASK STRUCTURE
Is the degree to which the requirements of a
subordinate’s tasks are clearly specified
Situational Favorableness
 POSITION POWER
The degree to which leaders are able to
hire, fire, reward and punish workers.
PATH GOAL THEORY :
ADAPTING LEADER
BEHAVIOR
• States that leaders can increase
subordinate satisfaction and performance
by clarifying & clearing the paths to goals
and by increasing the number and kinds of
rewards available for goal attainment.
Leaders have to meet 2 conditions
1. The leaders behavior must be a source of
immediate or future satisfaction for
followers.
2. While providing the coaching, guidance
and all, they must also compliment and
not duplicate the characteristics of
follower’s work environment
4 kinds of leadership styles
1. Directive leadership – a style in which the
leader lets employees know precisely
what is expected of them, gives them
specific guidelines for performing tasks,
schedules work, sets standards of
performance & makes sure that people
follow rules and regulations.
2. Supportive leadership – a style in which the
leader is friendly and approachable, shows
concern for employees and their welfare,
treats them as equals and creates a friendly
climate.
3. Participative leadership – a style in which the
leader consults employees for their
suggestions and input before making
decisions.
4. Achievement – oriented leadership – style
in which the leader sets challenging goals,
has high expectations of employees and
displays confidence that employees will
assume responsibility and put forth
extraordinary effect.
Subordinate & Environmental
Contingencies
3 kinds of subordinate
contingencies
1. Perceived ability – simply how much
ability subordinates believe they have for
doing their job well.
2. Experience – experienced employees are
likely to react in a similar way.
3. Locus of control – is a personality
measure that indicates the extent to which
people believe that they have control over
what happens to them in life.
• Internals – believe that what happens to
them, good or bad, is largely a result of
their choices and actions.
• Externals – believe that what happens to
them is caused by external forces beyond
their control.
3 kinds of environmental
contingencies
1. Task structure – the degree to which the
requirements of a subordinate’s tasks are
clearly specified.
2. Formal Authority System – is an
organization’s set of procedures, rules
and policies.
3. Primary work group – refers to the
amount of work-oriented participation or
emotional support that is provided by an
employee’s immediate work group.
HOW TO APPLY PATH-GOAL
THEORY
• Clarify paths to goals.
• Clear paths to goals by solving problems and
removing roadblocks.
• Increase the number and kinds of rewards
available for goal attainment.
• Do things that satisfy followers today or will
lead to future rewards or satisfaction.
• Offer followers something unique and
valuable beyond what they’re experiencing or
can already do for themselves.
When to use Directive, Supportive, Participative
or Achievement-Oriented Leadership
DIRECTIVE

SUPPORTIVE

PARTICIPATIVE

Unstructured tasks

Structured, simple,
repetitive tasks;
stressful,
frustrating tasks

Complex tasks

Workers with
external locus of
control

Workers lack
confidence

Workers with
internal locus of
control

Unclear formal
authority system

Clear formal
authority system

Workers not
satisfied with
rewards

Inexperienced
workers

Experienced
workers

Workers with low
perceived ability

Workers with high
perceived ability

ACHIEVEMENTORIENTED
Unchallenging taks
Subordinate Contingencies
•Perceived Ability
•Locus of Control
•Experience
Leadership Styles
•Directive
•Supportive
•Participative
•Achievement- Oriented

Outcomes
•Subordinate Satisfaction
•Subordinate Performance

Environmental
Contingencies
•Task Structure
•Formal Authority System
•Primary Work Group
NORMATIVE DECISION
THEORY
It helps leaders decide how much
employee participation should be
used when making decisions.
DECISION STYLES
• Using information available at the time, the
leader solves the problem or makes the
decision.
• The leader obtains necessary information
from employees and then selects a
solution to the problem. When asked to
share information, employees may or may
not be told what the problem is.
• The leader shares the problem and gets
ideas and suggestions from relevant
employees on an individual basis.
Individuals are not together as a group so
the leader makes the decision.
• The leader shares the problem with
employees as a group, obtains their ideas
and suggestions, and then makes the
decision.
• The leader shares the problem with
employees as a group, acts as a facilitator
and does not try to influence the group
and is willing to accept and implement any
solution that has the support of the entire
group.
DECISION RULES TO INCREASE
DECISION QUALITY
•
•
•
•
•

Quality Rule
Leader Information Rule
Subordinate Information Rule
Goal Congruence Rule
Problem Structure Rule
DECISION RULES TO INCREASE
DECISION ACCEPTANCE
• Commitment Probability Rule
• Subordinate Conflict Rule
• Commitment Requirement Rule
VISIONARY LEADERSHIP
Creates a positive image of the future that
motivates organizational members and
provides direction for future planning and
goal setting.
Two Kinds of Visionary leadership:
 CHARISMATIC LEADERSHIP
TRANSFORMATIONAL LEADERSHIP
Two Kinds of Visionary leadership:
 CHARISMATIC LEADERSHIP
Charisma is a Greek word meaning “divine gift”.
The behavioral tendencies and personal
characteristics
of
leaders
that
create
exceptionally strong relationships between them
and their followers.
Two Kinds of Visionary leadership:
 CHARISMATIC LEADERSHIP
Charismatic leaders have strong, confident,
dynamic personalities that attracts
followers and enable the leaders to create
strong bond with their followers.
Charismatic leaders also:
Articulate clear visions for the future that
are base on strongly held values or morals
Model those values by acting in ways
consistent with their visions
Communicate high performance
expectations to followers
Display confidence in followers’ abilities to
achieve visions
Two Kinds of Charismatic Leaders:
 ETHICAL CHARISMATICS
UNETHICAL CHARISMATICS
ETHICAL CHARISMATIC

UNETHICAL CHARISMATIC

 Provide developmental
opportunities for
followers,
 Are open to positive and
negative feedback,
 Recognize others’
contributions,
 share information,
 Has moral standards that
emphasize the larger
interests of the group,
organization, or society.

 Control and manipulate
followers,
 Do what is the best for
themselves instead of
their organizations,
 Wants to hear only
positive feedback,
 Share only information
that is beneficial to
themselves,
 Have moral standards
that put their interests
before everyone else’s
TRANSFORMATIONAL
LEADERSHIP
Goes further by generating awareness and
acceptance of a group's purpose and mission
and by getting employees to see beyond their
own needs and self-interest for the good of the
group.
Four Components of
transformational leadership:
CHARISMATIC LEADERSHIP OR
IDEALIZED INFLUENCE
INSPIRATIONAL MOTIVATION
INTELLECTUAL STIMULATION
INDIVIDUALIZED CONSIDERATION
Charismatic Leadership or
Idealized Influence
Means that transformational
leaders act as role models for
their followers.
INSPIRATIONAL STIMULATION
Means that transformational leaders
motivate and inspire followers by
providing meaning and challenge to
their work.
INTELLECTUAL STIMULATION
Means that transformational leaders
encourage followers to be creative and
innovative, to question assumptions, and
to look at problems and stimulations in
new ways even if their ideas are different
from the leaders.
INDIVIDUALIZED
CONSIDERATION
Means that transformational leaders pay
special attention to followers; individual
needs by creating learning opportunities,
accepting and tolerating individual
differences,
encouraging
two-way
communication,
and
being
good
listeners.
TRANSACTIONAL
LEADERSHIP
Leadership based on an exchange
process, in which followers are rewarded
for good performance and punished for
poor performance.
NORMATIVE DECISION
THEORY
It helps leaders decide how much
employee participation should be
used when making decisions.
Decision Styles
• Using information available at the time, the
leader solves the problem or makes the
decision.
• The leader obtains necessary information
from employees and then selects a
solution to the problem. When asked to
share information, employees may or may
not be told what the problem is.
• The leader shares the problem and gets
ideas and suggestions from relevant
employees on an individual basis.
Individuals are not together as a group so
the leader makes the decision.
• The leader shares the problem with
employees as a group, obtains their ideas
and suggestions, and then makes the
decision.
• The leader shares the problem with
employees as a group, acts as a facilitator
and does not try to influence the group
and is willing to accept and implement any
solution that has the support of the entire
group.

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Leadership

  • 2. WHAT IS LEADERSHIP? The process of influencing others to achieve group or organizational goals.
  • 3. LEADERS VERSUS MANAGERS Leaders • Are concerned with doing the right thing. Managers • Are concerned with doing things right. • Focus on vision, mission, goals, and objectives. • Focus on productivity and efficiency. • Take a long term view. • Have a relatively shortterm perspective.
  • 4. LEADERS VERSUS MANAGERS Leaders • Concerned with expanding people’s choice and options. Managers • Concerned with control and limiting the choice of others. • Inspire and motivate others to find their own solutions. • Solve problems so that others can do their work. • More concerned with ends, what gets done. • More concerned with means, how things done.
  • 5. MANAGERS are critical to getting out the day-to day work. LEADERS are critical to inspiring employees and setting the organization’s long term direction.
  • 7. • A leadership theory that holds that effective leaders possess a similar set of traits or characteristics. • Is also known as the “great person” theory. • TRAITS - a relatively stable characteristics such as abilities, psychological motives, and consistent patterns of behavior.
  • 8. LEADERS are different from NONLEADERS in the following traits: Drive The desire to lead Honesty/integrity Self-confidence Emotional stability Cognitive ability Knowledge of the business
  • 9. DRIVE Refers to a high level of effort and is characterized by achievement, motivation, initiative, energy, and tenacity.
  • 10. DESIRE TO LEAD They want to be in charge and think about ways to influence or convince others.
  • 11. HONESTY/ INTEGRITY HONESTY being truthful with others, is a cornerstone of leadership. INTEGRITY is the extent to which leaders do what they say or they will do.
  • 12. SELF-CONFIDENCE Believing in one’s abilities Are more decisive and assertive.
  • 13. EMOTIONAL STABILITY Refers to the state of being able to have the appropriate feelings about the common experiences and being able to act in a rational manner.
  • 14. COGNITIVE STABILITY Refers to the individual’s capacity to think, reason, and problem solved.
  • 15. KNOWLEDGE OF THE BUSINESS Understand the key technological decisions and concerns facing their companies.
  • 17. INITIATING STRUCTURE The degree to which a leader structures the role of followers by setting goals, giving directions, setting deadlines, and assigning tasks.
  • 18. CONSIDERATION The extent to which a leader is friendly, approachable, and supportive and show concerns for employees.
  • 19. Specific leader consideration behaviors include:  Listening to employees’ problems and concerns.  Consulting with employees before making decisions.  Treating employees as equals.
  • 20. FIEDLER’S CONTIGENCY THEORY shows the relationship between the leader’s orientation or style and group performance under differing situational conditions.
  • 21. Fiedler assumes that.. Leaders style is fixed and can be measured by the least preferred co-worker (LPC) questionnaire
  • 23. High Score • Relationship Oriented Low Score • Task Oriented
  • 24. RELATIONSHIP ORIENTED Are better leaders under favorable situations.
  • 25. TASK ORIENTED Are better leaders in highly favorable and unfavorable situations.
  • 26. Situational Favorableness  LEADER-MEMBER RELATIONS Which refers to how well and there is a friendly work atmosphere  TASK STRUCTURE Is the degree to which the requirements of a subordinate’s tasks are clearly specified
  • 27. Situational Favorableness  POSITION POWER The degree to which leaders are able to hire, fire, reward and punish workers.
  • 28. PATH GOAL THEORY : ADAPTING LEADER BEHAVIOR
  • 29. • States that leaders can increase subordinate satisfaction and performance by clarifying & clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.
  • 30. Leaders have to meet 2 conditions 1. The leaders behavior must be a source of immediate or future satisfaction for followers. 2. While providing the coaching, guidance and all, they must also compliment and not duplicate the characteristics of follower’s work environment
  • 31. 4 kinds of leadership styles 1. Directive leadership – a style in which the leader lets employees know precisely what is expected of them, gives them specific guidelines for performing tasks, schedules work, sets standards of performance & makes sure that people follow rules and regulations.
  • 32. 2. Supportive leadership – a style in which the leader is friendly and approachable, shows concern for employees and their welfare, treats them as equals and creates a friendly climate. 3. Participative leadership – a style in which the leader consults employees for their suggestions and input before making decisions.
  • 33. 4. Achievement – oriented leadership – style in which the leader sets challenging goals, has high expectations of employees and displays confidence that employees will assume responsibility and put forth extraordinary effect.
  • 35. 3 kinds of subordinate contingencies 1. Perceived ability – simply how much ability subordinates believe they have for doing their job well. 2. Experience – experienced employees are likely to react in a similar way.
  • 36. 3. Locus of control – is a personality measure that indicates the extent to which people believe that they have control over what happens to them in life.
  • 37. • Internals – believe that what happens to them, good or bad, is largely a result of their choices and actions. • Externals – believe that what happens to them is caused by external forces beyond their control.
  • 38. 3 kinds of environmental contingencies 1. Task structure – the degree to which the requirements of a subordinate’s tasks are clearly specified. 2. Formal Authority System – is an organization’s set of procedures, rules and policies.
  • 39. 3. Primary work group – refers to the amount of work-oriented participation or emotional support that is provided by an employee’s immediate work group.
  • 40. HOW TO APPLY PATH-GOAL THEORY • Clarify paths to goals. • Clear paths to goals by solving problems and removing roadblocks. • Increase the number and kinds of rewards available for goal attainment. • Do things that satisfy followers today or will lead to future rewards or satisfaction. • Offer followers something unique and valuable beyond what they’re experiencing or can already do for themselves.
  • 41. When to use Directive, Supportive, Participative or Achievement-Oriented Leadership DIRECTIVE SUPPORTIVE PARTICIPATIVE Unstructured tasks Structured, simple, repetitive tasks; stressful, frustrating tasks Complex tasks Workers with external locus of control Workers lack confidence Workers with internal locus of control Unclear formal authority system Clear formal authority system Workers not satisfied with rewards Inexperienced workers Experienced workers Workers with low perceived ability Workers with high perceived ability ACHIEVEMENTORIENTED Unchallenging taks
  • 42. Subordinate Contingencies •Perceived Ability •Locus of Control •Experience Leadership Styles •Directive •Supportive •Participative •Achievement- Oriented Outcomes •Subordinate Satisfaction •Subordinate Performance Environmental Contingencies •Task Structure •Formal Authority System •Primary Work Group
  • 43. NORMATIVE DECISION THEORY It helps leaders decide how much employee participation should be used when making decisions.
  • 44. DECISION STYLES • Using information available at the time, the leader solves the problem or makes the decision. • The leader obtains necessary information from employees and then selects a solution to the problem. When asked to share information, employees may or may not be told what the problem is.
  • 45. • The leader shares the problem and gets ideas and suggestions from relevant employees on an individual basis. Individuals are not together as a group so the leader makes the decision. • The leader shares the problem with employees as a group, obtains their ideas and suggestions, and then makes the decision.
  • 46. • The leader shares the problem with employees as a group, acts as a facilitator and does not try to influence the group and is willing to accept and implement any solution that has the support of the entire group.
  • 47. DECISION RULES TO INCREASE DECISION QUALITY • • • • • Quality Rule Leader Information Rule Subordinate Information Rule Goal Congruence Rule Problem Structure Rule
  • 48. DECISION RULES TO INCREASE DECISION ACCEPTANCE • Commitment Probability Rule • Subordinate Conflict Rule • Commitment Requirement Rule
  • 49. VISIONARY LEADERSHIP Creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting.
  • 50. Two Kinds of Visionary leadership:  CHARISMATIC LEADERSHIP TRANSFORMATIONAL LEADERSHIP
  • 51. Two Kinds of Visionary leadership:  CHARISMATIC LEADERSHIP Charisma is a Greek word meaning “divine gift”. The behavioral tendencies and personal characteristics of leaders that create exceptionally strong relationships between them and their followers.
  • 52. Two Kinds of Visionary leadership:  CHARISMATIC LEADERSHIP Charismatic leaders have strong, confident, dynamic personalities that attracts followers and enable the leaders to create strong bond with their followers.
  • 53. Charismatic leaders also: Articulate clear visions for the future that are base on strongly held values or morals Model those values by acting in ways consistent with their visions Communicate high performance expectations to followers Display confidence in followers’ abilities to achieve visions
  • 54. Two Kinds of Charismatic Leaders:  ETHICAL CHARISMATICS UNETHICAL CHARISMATICS
  • 55. ETHICAL CHARISMATIC UNETHICAL CHARISMATIC  Provide developmental opportunities for followers,  Are open to positive and negative feedback,  Recognize others’ contributions,  share information,  Has moral standards that emphasize the larger interests of the group, organization, or society.  Control and manipulate followers,  Do what is the best for themselves instead of their organizations,  Wants to hear only positive feedback,  Share only information that is beneficial to themselves,  Have moral standards that put their interests before everyone else’s
  • 56. TRANSFORMATIONAL LEADERSHIP Goes further by generating awareness and acceptance of a group's purpose and mission and by getting employees to see beyond their own needs and self-interest for the good of the group.
  • 57. Four Components of transformational leadership: CHARISMATIC LEADERSHIP OR IDEALIZED INFLUENCE INSPIRATIONAL MOTIVATION INTELLECTUAL STIMULATION INDIVIDUALIZED CONSIDERATION
  • 58. Charismatic Leadership or Idealized Influence Means that transformational leaders act as role models for their followers.
  • 59. INSPIRATIONAL STIMULATION Means that transformational leaders motivate and inspire followers by providing meaning and challenge to their work.
  • 60. INTELLECTUAL STIMULATION Means that transformational leaders encourage followers to be creative and innovative, to question assumptions, and to look at problems and stimulations in new ways even if their ideas are different from the leaders.
  • 61. INDIVIDUALIZED CONSIDERATION Means that transformational leaders pay special attention to followers; individual needs by creating learning opportunities, accepting and tolerating individual differences, encouraging two-way communication, and being good listeners.
  • 62. TRANSACTIONAL LEADERSHIP Leadership based on an exchange process, in which followers are rewarded for good performance and punished for poor performance.
  • 63. NORMATIVE DECISION THEORY It helps leaders decide how much employee participation should be used when making decisions.
  • 64. Decision Styles • Using information available at the time, the leader solves the problem or makes the decision. • The leader obtains necessary information from employees and then selects a solution to the problem. When asked to share information, employees may or may not be told what the problem is.
  • 65. • The leader shares the problem and gets ideas and suggestions from relevant employees on an individual basis. Individuals are not together as a group so the leader makes the decision. • The leader shares the problem with employees as a group, obtains their ideas and suggestions, and then makes the decision.
  • 66. • The leader shares the problem with employees as a group, acts as a facilitator and does not try to influence the group and is willing to accept and implement any solution that has the support of the entire group.