MGT1FOM: Foundations of Management

LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1.
define leadership and explain its importance for organisations
2.
describe how contemporary leadership is changing in today’s organisations, including Level 5
leadership, servant leadership and authentic leadership
3.
identify personal characteristics associated with effective leaders and discuss how women’s
style of leading is typically different from men’s
4.
define task oriented behaviour and people oriented behaviour and explain how these categories
are used to evaluate and adapt leadership style
5.
describe the situational model of leadership, application to subordinate participation and discuss
how organisational characteristics can substitute for leadership behaviours
6.
describe transformational leadership and explain when it should be used
7.
explain how followership is related to effective leadership
8.
identify sources of leader power and the tactics that leaders use to influence others
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LEADERSHIP
LEADERSHIP

Is one of the most widely discussed and researched Is one of the most widely discussed and researched topics in managementtopics in management

Leadership is a key factor in organisational successLeadership is a key factor in organisational success

There is no one best style of leadershipThere is no one best style of leadership
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THE NATURE OF LEADERSHIP
THE NATURE OF LEADERSHIP

Three key aspects of leadership:Three key aspects of leadership:

–PeoplePeople

–InfluenceInfluence

–GoalsGoals

LeadershipLeadershiprefers to the ability to influence people refers to the ability to influence people towards the attainment of organisational goalstowards the attainment of organisational goals
5
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CONTEMPORARY LEADERSHIP
CONTEMPORARY LEADERSHIP

Different factors affect the best style of leadershipDifferent factors affect the best style of leadership

4 approaches to leadership:4 approaches to leadership:

Level 5 leadershipLevel 5 leadership

Servant leadershipServant leadership

Authentic leadershipAuthentic leadership

Interactive leadership Interactive leadership
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LEVEL 5 LEADERSHIP
LEVEL 5 LEADERSHIP

Originator: Jim CollinsOriginator: Jim Collins

Leadership perceived as reflecting a hierarchy of Leadership perceived as reflecting a hierarchy of manager capabilitiesmanager capabilities

Level 5 leadership:Level 5 leadership:

–Demonstrates almost complete lack of egoDemonstrates almost complete lack of ego

–Coupled with a fierce resolve to do what is best for the Coupled with a fierce resolve to do what is best for the organisationorganisation
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LEVEL 5 HIERARCHY
LEVEL 5 HIERARCHY
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SERVANT LEADERSHIP
SERVANT LEADERSHIP

Occurs when a leader transcends selfOccurs when a leader transcends self–interest to serve interest to serve others, the organisation and societyothers, the organisation and society

Operate on two levels:Operate on two levels:

–To fulfil subordinates’ goals and needsTo fulfil subordinates’ goals and needs

–For the realisation of the larger purpose or mission of For the realisation of the larger purpose or mission of their organisationtheir organisation
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SERVANT LEADERSHIP
SERVANT LEADERSHIP

Servant leaders Servant leaders give away:give away:

–PowerPower

–IdeasIdeas

–InformationInformation

–RecognitionRecognition

–Credit for accomplishmentCredit for accomplishment
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AUTHENTIC LEADERSHIP
AUTHENTIC LEADERSHIP
Refers to the behaviour of leaders who:
Refers to the behaviour of leaders who:

Know and understand themselves Know and understand themselves

Espouse and act consistently with higherEspouse and act consistently with higher–order ethical order ethical valuesvalues

Empower and inspire others with their openness and Empower and inspire others with their openness and authenticity (contd.)authenticity (contd.)
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AUTHENTIC LEADERS CONTD.
AUTHENTIC LEADERS CONTD.
Authentic
Authenticleaders:leaders:

•Pursue their purpose with passionPursue their purpose with passion

•Practise solid valuesPractise solid values

•Lead with their hearts as well as their headsLead with their hearts as well as their heads

•Establish connected relationshipsEstablish connected relationships

•Demonstrate selfDemonstrate self–disciplinediscipline
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COMPONENTS OF AUTHENTIC LEADERSHIP
COMPONENTS OF AUTHENTIC LEADERSHIP
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GENDER DIFFERENCES
GENDER DIFFERENCES

Suggests female and male leaders reflect different Suggests female and male leaders reflect different leadership qualitiesleadership qualities

Female leaders are associated with Female leaders are associated with interactive interactive leadership leadership which focus more on:which focus more on:

–Relationships rather than position power and formal Relationships rather than position power and formal authorityauthority
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FROM MANAGEMENT TO
FROM MANAGEMENT TO LEADERSHIPLEADERSHIP

Reflect two different sets of qualities and skillsReflect two different sets of qualities and skills

But qualities and skills may overlapBut qualities and skills may overlap
15
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LEADERSHIP TRAITS
LEADERSHIP TRAITS

Traits Traits are distinguishing personal characteristics, such are distinguishing personal characteristics, such as intelligence, values and appearanceas intelligence, values and appearance

Past research focused on great leaders (examine traits)Past research focused on great leaders (examine traits)

More interest in this theory in recent yearsMore interest in this theory in recent years
16
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BEHAVIOURAL APPROACHES
BEHAVIOURAL APPROACHES

Focus on leadership behaviour and how it might Focus on leadership behaviour and how it might contribute to leadership success or failurecontribute to leadership success or failure

Two key behaviours:Two key behaviours:

–Attention to Attention to tasktaskor taskor task–oriented behaviouroriented behaviour

–Attention to Attention to people people or peopleor people–oriented behaviour oriented behaviour (contd.)(contd.)
17
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BEHAVIOURAL APPROACHES
BEHAVIOURAL APPROACHES CONTD.CONTD.

Ohio State researchers identified 2 major behaviours Ohio State researchers identified 2 major behaviours they termed:they termed:

–ConsiderationConsideration

The extent to which a leader is mindful of subordinates, The extent to which a leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual respects their ideas and feelings, and establishes mutual trust.trust.

–Initiating structureInitiating structure

The degree of task behaviourThe degree of task behaviour

•The extent to which the leader is taskThe extent to which the leader is task–oriented and oriented and directs subordinate work activities towards goal directs subordinate work activities towards goal 18
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BEHAVIOURAL APPROACHES
BEHAVIOURAL APPROACHES

Michigan studiesMichigan studies

–EmployeeEmployee–centred leaderscentred leaders

Effective supervisors focused on employees’ human needs.Effective supervisors focused on employees’ human needs.

Build effective work groups with high performance goals.Build effective work groups with high performance goals.

–JobJob–centred leaderscentred leaders

Meeting schedules, keeping costs low, achieving production efficiency.Meeting schedules, keeping costs low, achieving production efficiency.
19
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THE LEADERSHIP GRID
THE LEADERSHIP GRID

Another behavioural approach to leadershipAnother behavioural approach to leadership

Two dimensionsTwo dimensions

–Concern for productionConcern for production

–Concern for peopleConcern for people

5 management styles5 management styles
20
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THE LEADERSHIP GRID FIGURE
THE LEADERSHIP GRID FIGURE
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CONTINGENCY APPROACHES
CONTINGENCY APPROACHES

A leadership model that describes the A leadership model that describes the relationship between leadership styles and relationship between leadership styles and specific organisational situationsspecific organisational situations
22
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THE SITUATIONAL MODEL OF
THE SITUATIONAL MODEL OF LEADERSHIPLEADERSHIP

Originator: Hersey and BlanchardOriginator: Hersey and Blanchard

Links the leader’s behavioural style with the task readiness of employeesLinks the leader’s behavioural style with the task readiness of employees

Effective leaders adapt style according to the readiness level of subordinatesEffective leaders adapt style according to the readiness level of subordinates

4 4 styles of leadershipstyles of leadership::

–Directing styleDirecting style

–Coaching styleCoaching style

–Supporting styleSupporting style

–Entrusting styleEntrusting style
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THE SITUATION MODEL OF LEADERSHIP
THE SITUATION MODEL OF LEADERSHIP
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SITUATIONAL SUBSTITUTES FOR LEADERSHIP
SITUATIONAL SUBSTITUTES FOR LEADERSHIP

Substitute for leadershipSubstitute for leadership

–A situational variable that makes a leadership style A situational variable that makes a leadership style redundant or unnecessary redundant or unnecessary

e.g. High level of professional knowledge substitutes for e.g. High level of professional knowledge substitutes for initiating structure leadership.initiating structure leadership.

Neutralisers Neutralisers

–A situational variable that counteracts a leadership style A situational variable that counteracts a leadership style and prevents the leader from displaying certain behavioursand prevents the leader from displaying certain behaviours

e.g. No position power, or physically removed from e.g. No position power, or physically removed from employeesemployees
25
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CHARISMATIC LEADERSHIP
CHARISMATIC LEADERSHIP

Charisma refers to a ‘Charisma refers to a ‘fire that ignites followersfire that ignites followers’ energy ’ energy and commitmentand commitment

–Produces results over and beyond the call of dutyProduces results over and beyond the call of duty

A A charismatic leader charismatic leader is a leader who has the ability to is a leader who has the ability to motivate employees to transcend their expected motivate employees to transcend their expected performanceperformance
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TRANSFORMATIONAL VERSUS
TRANSFORMATIONAL VERSUS TRANSACTIONAL LEADERSHIPTRANSACTIONAL LEADERSHIP

TransformationalTransformationalleadersleaders

–Are distinguished by a special ability to bring about Are distinguished by a special ability to bring about innovation and changeinnovation and change

TransactionalTransactionalleadersleaders

–Are leaders who clarify employees’ role and task Are leaders who clarify employees’ role and task requirements, initiate structure, provide rewards, and requirements, initiate structure, provide rewards, and display consideration for employeesdisplay consideration for employees
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latrobe.edu.au
FOLLOWERSHIP
FOLLOWERSHIP

No organisation can survive without followersNo organisation can survive without followers

Top 5 qualities of leaders and followers Top 5 qualities of leaders and followers
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POWER AND INFLUENCE
POWER AND INFLUENCE

PowerPower

–Refers to the potential ability to influence the Refers to the potential ability to influence the behaviour of othersbehaviour of others

InfluenceInfluence

–Refers to the effect that a person’s actions have on the Refers to the effect that a person’s actions have on the attitudes, values, beliefs or behaviour of othersattitudes, values, beliefs or behaviour of others
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DIFFERENT TYPES OF POWER
DIFFERENT TYPES OF POWER

Position powerPosition power

–Legitimate powerLegitimate power

–Reward powerReward power

–Coercive powerCoercive power

Personal powerPersonal power

–Expert powerExpert power

–Referent powerReferent power
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latrobe.edu.au
DIFFERENT TYPES OF POWER
DIFFERENT TYPES OF POWER

Other sources of powerOther sources of power

–Personal effortPersonal effort

–Network of relationshipsNetwork of relationships

–Information Information
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LEADERSHIP OF SUSTAINABLE
LEADERSHIP OF SUSTAINABLE DEVELOPMENTDEVELOPMENT

The intent to pursue a sustainability strategy needs to be The intent to pursue a sustainability strategy needs to be authorised from the top of the organisation.authorised from the top of the organisation.

–Leaders can then use the tools of management, meaning Leaders can then use the tools of management, meaning goals, measures, objectives and plans to lead and goals, measures, objectives and plans to lead and influence staff and external stakeholders to move up the influence staff and external stakeholders to move up the sustainability maturitysustainability maturitycurve.curve.

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