FUNDAMENTALS OF MANAGEMENT

PLANNING ORGANIZING
CONTROLLING

LEADING / DIRECTING

LEADING

Leading is influencing people's behavior through motivation, effective communication, group dynamics, effective use of powers and discipline. The purpose of or leading or directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives.

LEADERSHIP

Leadership is the power of persuasion of one person over others to inspire actions towards achieving the goals of the company.

Those in the leadership role must be able to influence/motivate workers to an elevated goal and direct themselves to the duties or responsibilities assigned during the planning process

LEADERSHIP

Leadership involves the interpersonal characteristic of a manager's position that includes communication and close contact with team members. "A leader can be a manager, but a manager is not necessarily a leader," says Gemmy Allen (1998).

Leaders versus Managers

MANAGERS Do things right Status quo Short-term Means Builders Problem solving

LEADERS
Do the right thing Change Long-term Ends Architects Inspiring & motivating

Adapted from Exhibit 14.1

Doing the Right Thing

The Three Ms: Mission, Mentor, and Mirror
Business leaders can develop personal ethics by focusing on their mission, a mentor, and the mirror 1. Develop a personal mission statement.

2. Take care in choosing a mentor.

3. Stand in front of the mirror to assess your ethical performance as a business leader.

Who Leaders Are and What Leaders Do

Leadership Traits

Leadership Behavior

Leadership Traits
Honesty and Integrity

Desire to Lead

Drive Leadership Traits Knowledge of the Business Cognitive Ability

SelfConfidence

Emotional Stability

Adapted from Exhibit 14.3

Leadership Behaviors
Initiating Structure
The degree to which a leader structures the roles 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 shows concern for employees.

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Factors of Leadership
1. Leader - You must have an honest understanding of who you are, what you know, and what you can do.
2. Followers - You must know your people, you must have clear understand the subordinates' personalities, values, attitudes, and emotions.
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Factors of Leadership
3. Communication - You lead through twoway communication . Much of it is nonverbal. What and how you communicate either builds or harms the relationship between you and your employees.

4. Situation - What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation.
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Theories on Leadership
Fiedlers Contingency Theory Bass' Theory of Leadership

Path-Goal Theory
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Bass' Theory of Leadership

Bass' theory of leadership states that there are three basic ways to explain how people become leaders

1. Some personality traits may lead people naturally into leadership roles. This is the Trait Theory.
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Bass' Theory of Leadership

2. A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person.

3. People can choose to become leaders. People can learn leadership skills.

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Fiedlers Contingency Theory

Fiedler's contingency theory states that in order to maximize work group performance, leaders must be matched to the right leadership situation
Situational Favorableness

Group Performance

=
Leadership Style

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Fiedlers Contingency Theory

Least Preferred Coworker

Situational Favorableness
Matching Leadership Styles to Situations

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Leadership Style: Least Preferred Coworker

Leadership style is the way a leader generally behaves toward followers

seen as stable and difficult to change

Style is measured by the Least Preferred Coworker scale (LPC)

relationship-oriented task-oriented

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Situational Favorableness
Situational Favorableness
The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. Three factors: Leader-member relations Task structure Position power

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Path-Goal Theory
Path-Goal Theory
A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.

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Basic Assumptions of 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 theyre experiencing
Adapted From Figure 14.9

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Path-Goal Theory
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

Adapted From Figure 14.10

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Adapting Leader Behavior: Path-Goal Theory

Leadership Styles

Subordinate and Environmental Contingencies

Outcomes

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Leadership Styles

Directive
clarifying expectations and guidelines

Supportive
being friendly and approachable

Participative
allowing input on decisions

Achievement-Oriented
setting challenging goals

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Path Goal Theory: When to Use Leadership Styles

Directive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of control Unclear formal authority system Supportive Leadership Structured, simple, repetitive tasks Stressful, frustrating tasks When workers lack confidence Clear formal authority system

Participative Leadership Achievement-Oriented Leadership Experienced workers Unchallenging tasks Workers with high perceived ability Workers with internal locus of control Workers not satisfied with rewards Complex tasks

Adapted from Exhibit 14.11

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Subordinate and Environmental Contingencies

Subordinate Perceived ability Environmental Task structure

Locus of control Experience

Formal authority system Primary work group

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Effective Leadership
The Two Important Keys to Effective Leadership 1. Trust and Confidence 2. Effective communication
Helping employees understand the company's overall business strategy. Helping employees understand how they contribute to achieving key business objectives. Sharing information with employees on both how the company is doing and how an employee's own division is doing relative to strategic business objectives.
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Principles of Leadership
1. Know yourself and seek self-improvement

2. Be technically proficient 3. Seek responsibility and take responsibility for your actions 4. Set the example 5. Make sound and timely decisions 6. Know your people and look out for their well-being
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Principles of Leadership
7. Keep your workers informed

8. Ensure that tasks are understood, supervised, and accomplished 9. Develop a sense of responsibility in your workers 10. Train as a team 11. Use the full capabilities of your organization
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