9 chapter Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Leadership and decision- making PowerPoint Presentation prepared.

9chapter

Business Essentials, 7th EditionEbert/Griffin

© 2009 Pearson Education, Inc.

Leadership and decision-making

PowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College

Instructor Lecture PowerPoints

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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After reading this chapter, you should be able to:1. Define leadership and distinguish it from management.

2. Summarize early approaches to the study of leadership.

3. Discuss the concept of situational approaches to leadership.

4. Describe transformational and charismatic perspectives on leadership.

5. Identify and discuss leadership substitutes and neutralizers.

L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S

© 2009 Pearson Education, Inc.

After reading this chapter, you should be able to:

6. Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.

7. Describe strategic leadership, ethical leadership, and virtual leadership.

8. Relate leadership to decision-making and discuss both rational and behavioral perspectives on decision-making

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L E A R N I N G O B J E C T I V E S (cont’d)L E A R N I N G O B J E C T I V E S (cont’d)

What’s in It for Me?

• Why does understanding leadership matter to you?– By mastering the material in this chapter, you’ll

benefit in two ways:1. You’ll better understand how you can more

effectively function as a leader

2. You’ll have more insight into how your manager or boss strives to motivate you through his or her own leadership

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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.

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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.

TABLE 9.1 Kotter’s Distinctions Between Management and Leadership

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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

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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

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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

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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.

FIGURE 9.1 The Leadership Continuum

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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)

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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

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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

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TABLE 9.2 Leadership Substitutes and Neutralizers

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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

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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

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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

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FIGURE 9.2 Steps in the Rational Decision-Making Process

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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.

Key Terms

behavioral approach to leadershipcharismatic leadershipcoalitiondecision-makingemployee-focused leader behaviorescalation of commitmentethical leadershipintuitionleadershipleadership neutralizersleadership substitutesrisk propensity

situational approach to leadershipstrategic leadershiptask-focused leader behaviortrait approach to leadershiptransactional leadershiptransformational leadershipvirtual leadership

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