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

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.

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

© 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.

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)

© 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

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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

© 2009 Pearson Education, Inc.

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

© 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.