9 chapter

Leadership and decisionmaking

Business Essentials, 7th Edition Ebert/Griffin

Instructor Lecture PowerPoints

PowerPoint Presentation prepared by

2009 Pearson Education, Inc.

Carol Vollmer Pope Alverno College

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.

TABLE 9.1 Kotters Distinctions Between Management and Leadership

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.

2009 Pearson Education, Inc.

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.

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 leaders would be the same across all situations
Task-focused leader behaviors related to increasing the performance of employees Employee-focused leader behaviors related to job satisfaction, motivation, and well-being of employees

2009 Pearson Education, Inc.

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.

FIGURE 9.1 The Leadership Continuum

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.

2009 Pearson Education, Inc.

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, regimented activities (leading during a period of stability)

2009 Pearson Education, Inc.

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.

Special Issues in Leadership

Leadership Substitutes
Individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance

Leadership Neutralizers
Various factors that neutralize leadership behaviors or render them ineffective
The norms of strongly cohesive groups Elements of the job Organizational factors

2009 Pearson Education, Inc.

TABLE 9.2 Leadership Substitutes and Neutralizers

2009 Pearson Education, Inc.

The Changing Nature of Leadership

Leader as Coach
From directive overseer to mentor

Gender
Understanding the differences and dynamics in the approaches of women and men to leadership

Cross-Cultural Leadership
The effects of an individuals native culture on his or her approach to leadership when functioning in another culture
Collectivism versus individualism
2009 Pearson Education, Inc.

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.

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.

FIGURE 9.2 Steps in the Rational Decision-Making Process

2009 Pearson Education, Inc.

Behavioral Aspects of Decision-Making

Political Forces in Decision-Making
Coalition: An informal alliance of individuals or groups formed to achieve a common goal

Intuition
An innate belief about something, often without conscious consideration

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 gamble when making a decision
2009 Pearson Education, Inc.