Chapter 9 Leadership And Decision-making

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 Kotter’s 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 (cont’d) • 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 (cont’d) • Charisma – Charisma: A form of interpersonal attraction that inspires support and acceptance

• Charismatic Leadership – Influence based on the leader’s 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 individual’s 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 – Leader’s ability to understand the complexities of the organization and its environment and lead change so as to enhance organizational competitiveness • Ethical Leadership – Leader’s 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.