Robbins, Coulter, Sidani, Jamali: Management: Second Arab World Edition

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Management: Second Arab World Edition

Robbins, Coulter, Sidani, Jamali

Chapter 16: Managers As Leaders

Lecturer: [Dr.Hebat Allah Mamdouh]


Define Leaders
and Leadership

1. Explain who leaders are and what leadership is.

2. Explain why managers should be leaders.

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Who Are Leaders and What Is Leadership

Leader
 Someone who can influence others and who has managerial
authority

Leadership (what the leaders do)


 It is the process of leading a group and influencing that
group to achieve its goals.
 Because leading is one of the 4 management functions-
ideally all mangers should be leaders.

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Quick Learning Review

A leader is someone who:


a. Manages solely by virtue of his position
b. Is able to force his opinion on others
c. Dictates rules
d. Is able to influence others

Ideally, all managers:


a. Should be leaders
b. Should be followers
c. Should only be concerned about being rewarded
d. None of the above

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Early leadership theories

The 20th century witnessed a growing interest in the study of


leadership. These early leadership theories focused on the leader
(trait theories) and how the leader interacted with his or her group
members (behavioral theories).

There are 2 theories and they are:

•Trait theories
•Behavioral theories

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Early leadership theories cont’d – Trait theory

• Researchers eventually recognized that traits alone were not


sufficient for identifying effective leaders because explanations
based solely on traits ignored the interactions of leaders and their
group members as well as situational factors.
• Possessing the appropriate traits only made it more likely that an
individual would be an effective leader.
• Therefore, leadership research from the late 1940’s to the mid
1960’s concentrated on the preferred behavioral styles that leaders
demonstrated.

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Early leadership theories cont’d – Trait theory

Trait theories

• Leadership research in the 1920s and the 1930s focused on


isolating leader traits, that is characteristics that would differentiate
leaders from non leaders.

• Some of the traits studied included physical state, appearance,


social class, emotional stability, fluency speech and sociability.

• Despite the best efforts of researchers, it proved impossible to


identify a set of traits that would always differentiate a leader from
a non-leader.

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Early leadership theories cont’d – Trait theory

• There are 8 traits to be associated with the effective leadership


are described:

1. Drive. Leaders show a high effort level. They have a relatively high
desire for achievement, they are ambitious, they have a lot of energy.

2. Desire to lead. Leaders have a strong desire to influence and lead


others.

3. Honesty and integrity. Leaders build trusting relationships with


followers by being truthful by showing high consistency between word
and deed.

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Early leadership theories cont’d – Trait theory

4. Self-confidence. followers look to leaders for an absence of self-


doubt. Leaders, therefore, need to show self-confidence in order to
convince followers of the rightness of their goals decisions.

5. Intelligence. Leaders build trusting relationships enough to


gather, and interpret large amounts of information, and they need to
be able to create visions, solve problems, and make correct decisions.

6. Job relevant knowledge. Effective leaders have a high degree of


knowledge about the company, industry, and technical matters.

7. Extraversion. Leaders are energetic, lively people. They are


sociable, assertive, and rarely silent or withdrawn.

8. Proneness to guilt. Guilt proneness is positively related to


leadership effectiveness because it produces a strong sense of
responsibility for others.

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Compare and Contrast Early
Leadership Theories

1. Discuss what research has shown about leadership traits.

2. Contrast the findings of the four behavioral leadership


theories.

3. Explain the dual nature of a leader’s behavior.

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Early leadership theories cont’d – Behavioral theory

• Behavioral theories are leadership theories that identify behaviors that


differentiate effective leaders from ineffective leaders.

There are 4 main leader behavioral studies and they are:

• University of Iowa
• Ohio state
• University of Michigan
• Managerial Grid

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Behavioral Theories (cont’d)
University of Iowa Studies (Kurt Lewin)
• Identified three leadership styles:
– Autocratic style: described a leader who dictated work methods, made
unilateral decisions.
– Democratic style: described a leader who involved employees in decision
making, delegated authority, and used feedback as an opportunity for
coaching employees.
– Laissez faire style: described a leader who let the group make decisions
and complete the work in whatever way it saw fit.

– The researchers’ results seemed to indicate that the democratic


style contributed to both good quantity and quality of work as group
members were more satisfied under a democratic leader.

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Behavioral Theories (cont’d)

Ohio State Studies


• Identified two dimensions of leader behavior:
– Initiating structure: referred to the extent to which a leader defined his or
her role, and the roles of group members, in attaining goals.
– It includes behaviors that involved attempts to organize work, work
relationships and goals.
– Consideration: was defined as the extent to which a leader had work
relationships characterized by mutual trust and respect for group members
ideas and feelings (e.g. helping them in solving their problems, treating all
members as equals).

• Research found that a leader who was high in both initiating


structure and consideration ( a high-high leader) sometimes achieved
high group task performance and high group member satisfaction.
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Behavioral Theories (cont’d)

University of Michigan Studies


• Identified two dimensions of leader behavior:
– Employee oriented: leaders emphasizing interpersonal
relationships.
– Production oriented: leaders tend to emphasize task aspects of
the job.

• Research findings concluded that leaders who were employee


oriented were able to get high group productivity and high group
member satisfaction.

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Behavioral Theories (cont’d)
The Managerial Grid
• Appraises leadership styles using two dimensions: concern for people
and concern for production and evaluated a leader’s use of these
behavior’s, ranking them on a scale from 1 (low) to 9 (high)
This grid places managerial styles in five categories:
• Impoverished management (1,1)
• Task management (9,1)
• Middle-of-the-road management (5,5)
• Country club management (1,9)
• Team management (9,9)
- It was concluded that managers performed best when using
(9,9) style.

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Exhibit 16–3
The
Managerial
Grid

Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton,
Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.

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Exhibit 16–2 Behavioral Theories of Leadership

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Quick Learning Review

Leaders who get high group productivity and high group


member satisfaction are:
a. Production-oriented
b. Employee oriented
c. a and b
d. None of the above

A leader’s behavior has a dual nature if there is:


a. A focus on the task and the production
b. A focus on the people and structure
c. A focus on the task and people
d. None of the above

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Describe the Three Major
Contingency Theories of
Leadership

1. Explain Fiedler’s contingency model of leadership.

2. Describe situational leadership theory.

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The Fiedler Model

Fielder Contingency Model

Proposes that effective group performance depended on properly


matching the leader’s style and the amount of control and influence in
the situation.
The keys were to

(1) Define those leadership styles and the different types of situations
and then
(2) Identify the appropriate combinations of style and situation.

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The Fiedler Model (cont’d)

• Leadership styles:

• Fiedler proposed that a key factor in leadership success was an


individual's basic leadership style, either task oriented;the leader focuses
on the tasks that need to be performed in order to meet certain goals, or
relationship oriented; focuses on relationships required to keep employees
satisfied with their work.

• Fiedler assumed that a person’s leadership style was fixed, regardless of the
situation.

• In other word’s if you were a relationship-oriented leader, you would always


be one, and if you were a task-oriented leader, you would always be one.

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The Fiedler Model (cont’d)

The different types of situations


There are 3 Situational factors in leader effectiveness:
• Leader–member relations: the degree of confidence, trust, and
respect employees had for their leader, rated as either good or
poor.
• Task structure: the degree to which job assignments were
formalized and structured, rated as either high or low.
• Position power: the degree of influence a leader had over
activities such as hiring, firing, promotions, and salary increases
rated as either strong or weak.

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The Fiedler Model (cont’d)

• Once Fielder had described the leader variables and the situational
variables, he had everything he needed to define the specific
contingencies for leadership effectiveness.

• He concluded that task oriented leaders performed better in very


favorable situations and in very unfavorable situations.

• On the other hand, relationship-oriented leaders performed better
in moderately favorable situations.

• In Exhibit 16-4 performance is shown on the vertical axis and


situation favorableness is shown on the horizontal axis.

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The Fiedler Model (cont’d)

• Because fielder treated individual's leadership style as fixed, there


were only 2 ways to improve leader effectiveness:

• 1st you could bring in a new leader whose style better fits the
situation. For instance, if the group situation was highly unfavorable
but was led by a relationship-oriented leader, the group’s
performance could be improved by replacing that person with task-
oriented leader.

• The 2nd alternative was to change the situation to fit the leader. This
could be done by restructuring tasks, by increasing or decreasing
the power that the leader had over factors such as salary increases,
and promotions, or by improving the leader-member relations

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Exhibit 16–4 The Fiedler Model

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Hersey and Blanchard’s Situational
Leadership Theory (SLT)
They developed a leadership theory that has gained a strong following
among management development specialists. This model is called
Situation leadership theory (SLT).

•It’s
a contingency theory that focuses on followers’ readiness. Before
we proceed, there are 2 points we need to clarify: why a leadership
theory focuses on the followers and what is meant by term
readiness.

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Hersey and Blanchard’s Situational Leadership
Theory (SLT) (cont’d)

• Regardless of what the leader does, the group’s effectiveness


depends on the actions of the followers. This is an important
dimension that most leadership theories have overlooked.

• Readiness, as defined by Hersey and Blanchard, refers to the


extent to which people have the ability and willingness to
accomplish a specific task.

• SLT uses the same 2 leadership dimensions that Fiedler identified:


task and relationship behavior along with the stages of the
followers readiness.

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Hersey and Blanchard’s Situational
Leadership Theory (SLT) (cont’d)
• Creates four specific leadership styles incorporating Fiedler’s two
leadership dimensions:

• Telling: high task–low relationship leadership; the leader defines roles


and tells people what, how, when and where, to do various tasks.
• Selling: high task–high relationship leadership: the leader provides
both directive and supportive behavior.
• Participating: low task–high relationship leadership: the leader and
the followers share in decision making, the main role of the leader is
facilitating and communicating
• Delegating: low task–low relationship leadership: the leader provides
little direction or support.

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Hersey and Blanchard’s Situational
Leadership Theory (SLT) (cont’d)
• The four stages for follower readiness:

• R1: followers are both unable and unwilling to take


responsibility for doing something. Followers are not competent
or confident.
• R2: followers are unable but willing to do the necessary job
tasks. Followers are motivated but lack the appropriate skills.
• R3: followers are able but unwilling to do what the leader
wants. Followers are competent but do not want to do
something.
• R4: followers are able and willing to do what is asked of them.

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Hersey and Blanchard’s Situational Leadership
Theory (SLT) (cont’d)

• SLT essentially views the leader-follower relationship as like that of


a parent and a child. Just as a parent needs to relinquish (give up)
control when a child becomes more mature and responsible, so too,
should leaders.

• As followers reach higher levels of readiness, the leader responds


not only by decreasing control over their activities but also by
decreasing relationship behavior.

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Hersey and Blanchard’s Situational Leadership Theory (SLT)
• The SLT says if followers are at R1 ( unable and unwilling to do a task), the
leader needs to use the telling style (high task-low relationship) and give
clear and specific directions.
• If followers are at R2 ( unable and willing) , the leader needs to use the selling
style (high task-high relationship) and display high task orientation to
compensate for the followers’ lack of ability, and high relationship orientation to
get followers to “buy into” the leaders desires.

• If the followers are at R3 (able and unwilling), the leader needs to use the
participating style (low task-high relationship) to gain their support.

• If employees are at R4 ( both able and willing), the leader does not need to do
much and should use the delegating style (low task-low relationship).

• SLT has an advantage. It acknowledges the importance of followers and builds


on the logic that leaders can compensate for ability and motivational limitations
in their followers.

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Describe Contemporary
Views of Leadership

There are 2 types of the latest views of leadership and


they are:

1. Differentiate between transactional and transformational


leaders.

2. Explain Leader-Member Exchange (LMX) theory.

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Transactional-Transformational Leadership
Transactional Leader
•Transactionalleaders guide or motivate followers to work toward established
goals by exchanging rewards for their productivity.
•Theyfocus on organization, supervision and group performance through using
motivation (rewards and punishment).
Transformational Leader
•Transformational leader is a leader who stimulates and inspires (transforms)
followers to achieve extraordinary outcomes.
•Transformational leaders are charismatic leaders . A charismatic leader is a
self-confident leader whose personality and actions influence people to behave
in certain ways.
•Transformational leadership goes beyond just being charismatic, leaders are
perceived by their followers to be inspirational.

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Transactional-Transformational Leadership cont’d
• Transactional and transformational leadership should not be viewed as opposing
approaches to getting things done.

• Transformational leadership develops from transactional leadership.

• Transformational leadership is more than charisma because a transformational leader


attempts to instill in followers the ability to question not only established views held
by the leader.

• Transformational leaders were evaluated as more effective, higher performers, more


promotable than their transactional counterparts, and more interpersonally sensitive.

• Evidence indicates that transformational leadership is strongly correlated with lower


turnover rates and higher levels of productivity, employee satisfaction, creativity, goal
attainment, and follower well-being.

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Leader-member Exchange (LMX) Theory

• Have you ever been in a group in which the leader had “ favorites”
who made up his or her in-group? If so you have experienced the
premise behind leader-member exchange theory ( LMX)

• LMX theory says that leaders create in-groups and out-groups and
those in-groups will have higher performance ratings, lower
turnover, and greater employee satisfaction.

• LMX theory suggests that early on the relationship between a


leader and a given follower, a leader will categorize a follower as an
“in” or as an “out”. That relationship tends to remain stable
overtime.

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Leader-member Exchange (LMX) Theory cont’d

• Leaders also encourage LMX by rewarding those employees with


whom they want a closer linkage.

• Research on LMX has been greatly supportive. It appears that


leaders differentiate among followers: that these disparities are not
random; and followers with in-group status will have higher
performance ratings, engage in more helping or “citizenship”
behaviors at work, and report greater satisfaction.

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Most important Leadership issues in the 21st century
Twenty first century leaders deal with some important
leadership issues; Managing Power and Developing Trust.
•Managing Power
•Where do leaders get their power; that is, their capacity to influence
work actions or decisions?

•5 sources of leader power have been identified:


- Legitimate power

- Coercive power

- Reward power

- Expert power

- Referent power

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Managing Power cont’d

legitimate power:

•Legitimate power represents the power a leader has a result of his or her
position in the organization.
•Legitimate power is broader than the power to persuasion and control.

Coercive power:

•It is the power a leader has to punish or control


•Followersreact to this power out of fear of the negative results that
might occur if they do not comply.
•Managers typically have some coercive power, such as being able to
suspend or demote employees or to assign them work they find
unpleasant or undesirable.

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Managing Power cont’d

Reward power:

• Reward power is the power to give positive rewards.


• These can be anything that a person values, such as money, favorable
performance appraisals, promotions, interesting work assignments,
friendly colleagues, and preferred work shifts or sales territories.

Expert Power:

• Expert power is power based on expertise, special skills, or knowledge.


• If an employee has skills, knowledge, or expertise that is critical to a
work group.
• That person’s expert power enhanced.

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Managing Power cont’d

Referent power:

• Referent power is the power that arises because of a person’s


desirable personal traits.

• If you are admired and people want to be associated with you,


you can exercise power over others because they want to
please you.

• Referent power develops out admiration for another and a


desire to be like that person.

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Managing Power cont’d

• For example, the commanding officer of Australia’s state-of-


the art submarines, employs different types of power in
managing his crew and equipment.

• He gives orders to the crew (legitimate) praises them (reward), and


disciplines those who commit infractions (coercive). As an effective
leader, he also strives to have expert power ( based on his
expertise and knowledge) and referent power (based on his being
admired) to influence crew.

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Developing Trust

• In today’s uncertain environment, an important consideration for


leaders is building trust and credibility.

• Trust is defined as the belief in the integrity, character and ability


of a leader.

• Followers who trust a leader are willing to be affected by leader’s


actions because they are confident that their rights and interests
will not be abused.

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Developing Trust cont’d

• Research has identified 5 dimensions that make up the concept of


trust:

 Integrity: honesty and truthfulness.


 Competence: Technical and interpersonal knowledge and skills.
 Consistency: Reliability, predictability, and good judgment in
handling situations.
 Loyalty: willingness to protect a person, physically and
emotionally.
 Openness: willingness to share ideas and information freely.

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