Ltb Mid-Terms Notes

Chapter 1

What is a Leader

Definitions

1. Manager – formal title and designated authority
2. Leader – a manager or non-manager with influence
3. Follower – person influenced by a leader

Power – Leader’s potential influence over followers

1. Position – derived from management
2. Personal – derived from followers based on leader’s wbehavior

Types of Power

1. Legitimate – Based on user’s position power, given by organization

1. Appropriate use – employees agree to comply with management authority in return for benefits of membership or day-to-day manager-employee interactions, rational persuasion

5 Elements of Leadership

1. Leaders-Followers

1. Influencing process between leaders and followers (good followers perform leadership roles when needed

1. Influence

1. Process of a leader communicating ideas, gaining acceptance of them and motivating followers to support and implement the idea through change.

1. Organizational Objectives

1. Effective leaders influence followers to think of their own interest as well as the organization’s interest through as shared vision

1. Change

1. Influencing and setting objectives for organizations to adapt to the rapidly changing global environment

1. People

1. Leadership is about leading people and getting along with them (treating people as assets)

Managerial Leadership Skills

1. Technical Skills (Business Skills)

1. Ability to use methods and techniques to perform a task

1. Methods, processes, procedures, techniques and ability to use tools and equipment to perform a task

1. Technology – Microsoft Excel

1. Easiest to develop

1. Interpersonal Skills (Human, People and Soft Skills)

1. Ability to understand, communicate and work well with individuals and groups through developing effective relationships

1. Communicating, teamwork, power, politics, negotiating, networking, motivating, conflict, diversity and ethical skills.

1. Decision Making Skills (Conceptual Skills)

1. Ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities

1. Conceptual, diagnostic, analytical, critical-thinking, quantitative reasoning, time management skills, creative, perceive trends, anticipate changes and recognize problems and opportunities

1. Decision Making > Interpersonal Skills > Technical Skills (Last)

Managerial Leadership Roles

1. Interpersonal Roles

1. Figurehead Role – represent the organization or department in legal, social, ceremonial and symbolic activities (top level managers)

1. Signing official documents (expense authorization, checks, vouchers, contracts)
2. Entertaining clients or customers as official representatives
3. Receiving or escorting official visitors
4. Attending outside meetings as an organizational representative
5. Presiding at meetings or ceremonial events (awards ceremonies)

1. Leader Role – Performing the management functions to effectively operate the managers’ organizational unit.

1. Hiring, training, giving instructions, coaching and evaluating performance

1. Liaison Role – interact with people outside organizational unit

1. Networking to develop or maintain relationship that lead to power and influence (connections)
2. Serving on committees with members from outies the organizational unit
3. Attending professional/trade association meetings, calling and meeting with people to keep in touch

1. Informational Roles

1. Monitor Role – gathering information to analyze and discover problems and opportunities, in and outside the organization

1. Reading memos, reports, professional trade publications, newspapers

1. Disseminator Role – sending and translating information from higher management to employees (knowledge management)

1. Orally through voice mail, one-on-one discussions and group meetings or emails

1. Spokesperson Role – provide information to people outside the organization whom will report to their boss (BOD, owners, managers) and outside the organizational unit (other departments, customers, suppliers)

1. Meeting with the Boss to discuss performance, with the budget officer to discuss the unit budget, answer letters and reporting information to the government (IRS, OSHA)

1. Decisional Roles

1. Entrepreneur Role – innovating and initiating improvements through monitoring role

1. Develop new or improved products and service, new ways to process products or purchasing new equipment

1. Disturbance-Handler Role – take corrective action during crisis or conflict situations (priority)

1. Resolving union strike, breakdown of machines or equipment, materials arriving late or and even meeting a tight schedule

1. Resource-Allocator Role – schedule, request authorization and perform budgeting activities.

1. Deciding what is done now, done later and not done (time management and priorities)
2. Who gets overtime or a merit raise (budgeting)
3. Scheduling when employees will use materials or equipment

1. Negotiator Role – Representing organization during routine and non-routine transaction that do not include set boundaries (no one price or term of a sale)

1. Pay and benefit package for a new professional employee or manager, labor union contracts or contract with customer or supplier (purchase)

Relationship Between Levels of Leadership Analysis

1. Individual (Dyadic Process) – Focuses on the relationship between leader and individual followers

1. Followers will influence leaders behavior at work, vice versa

1. Group (Group Process) – Relationship between leader and a collective group of followers

1. Leaders contribution to group effectiveness

1. Organizational (Organizational Process) – Individuals and team contribution to organizational success

1. Organizational performance in the long run depends on effective adaptation to environment and acquiring enough resources to survive and is dependent on an effective transformation process to produce products and services
2. Top-level managers’ influence on organizational performance

Types of Leadership Theories

1. Trait Theory (1930 to 1940s) – attempt to explain distinctive characteristics accounting for leadership effectiveness.

1. Assumption that leaders are born, not made

1. Behavioral Leadership Theory (1950s) – attempt to explain distinctive styles used by effective leaders or to define the nature of their work.

1. Assumption that leadership skills can be learned

1. Contingency Leadership Theory (1960s) – attempts to explain the appropriate leadership style based on the leader, followers and situations

1. No one size fit all for best leadership style in all situation, and it depends on situations

1. Integrative Leadership Theory (1970s) – attempts to combine trait, behavioral and contingency theories to explain successful, influencing leader-follower relationship.

Major Similarity and Difference Between the Trait and Behavioral Leadership Theories

1. Similarity: Both are universal theories or seek the best leadership styles for all situations
2. Difference: Approach to determining leadership effectiveness. Trait Theory attempts to explain personal characteristics of effective leaders but Behavioral Theory attempts to explain what leaders actually do on the job

Interrelationships between Trait and Behavioral Leadership Theories and Contingency Theories

Contingency Theory is interrelated with the Trait and Behavioral Leadership Theories as it uses the two theories as the foundation for determining which leadership style is most appropriate based on the leader, follower and situation