PLANNING

ORGANIZING

LEADING / DIRECTING

CONTROLLING

Recap from the last lecture:

ORGANIZATION and STRUCTURE

The definition of Organizing

The Levels of Management
Organizational Structure
Departmentalization
Organizational Authority
Job Design

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This lecture is all about

LEADERSHIP

The definition of LEADING and

LEADERSHIP
The differences between Leaders and
Managers
The 3 Ms of a business leader
Leadership traits and behavior
Factors of Leadership
Theories on Leadership
Principles of Leadership

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LEADING

Leading is influencing people's behavior

through
motivation,
effective
communication,
group
dynamics,
effective use of powers and discipline.

The purpose of leading or directing is to

channel the behavior of all personnel to
accomplish the organization's mission
and objectives while simultaneously
helping them accomplish their own career
objectives.

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Copyright 2007 by South-Western, a division of Thomson Learning. All rights reserved

LEADERSHIP

Leadership is the power of persuasion

of one person over others to inspire
actions towards achieving the goals of
the company.

Those in the leadership role must be

able to influence/motivate workers to
an
elevated
goal
and
direct
themselves
to
the
duties
or
responsibilities assigned during the
planning process

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LEADERSHIP

Leadership involves the interpersonal

characteristic of a manager's position
that includes communication and
close contact with team members.

"A leader can be a manager, but a

manager is not necessarily a leader,"
says Gemmy Allen (1998).

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Leaders versus Managers

MANAGERS

LEADERS

Do things right
Status quo
Short-term
Means
Builders
Problem solving

Do the right thing

Change
Long-term
Ends
Architects
Inspiring & motivating

Doing the Right Thing

The Three Ms: Mission, Mentor, and Mirror
Business leaders can develop personal ethics by
focusing on their mission, a mentor, and the mirror
1. Develop a personal mission statement.
2. Take care in choosing a mentor.

3. Stand in front of the mirror to assess your

ethical performance as a business leader.
8

Who Leaders Are and What Leaders Do

Leadership
Traits

Leadership
Behavior

Leadership Traits
Desire
to Lead

Honesty
and
Integrity

Drive

SelfLeadership Confidence
Traits
Knowledge
Emotional
of the
Stability
Business
Cognitive
Ability
10

Leadership Behaviors
Initiating Structure
The degree to which a leader structures the
roles of followers by setting goals, giving
directions, setting deadlines, and assigning
tasks.

Consideration
The extent to which a leader is friendly,
approachable, and supportive and shows
concern for employees.

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12

Factors of Leadership
1. Leader - You must have an honest
understanding of who you are, what
you know, and what you can do.
2. Followers - You must know your
people, you
must have clear
understand
the
subordinates'
personalities, values, attitudes, and
emotions.
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13

Factors of Leadership
3. Communication - You lead through twoway communication . Much of it is
nonverbal.
What
and
how
you
communicate either builds or harms the
relationship between you and your
employees.
4. Situation - What you do in one situation will
not always work in another. You must use
your judgment to decide the best course of
action and the leadership style needed for
each situation.
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14

Theories on Leadership
Bass' Theory of
Leadership

Fiedlers
Contingency Theory

Path-Goal Theory
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15

A. Bass' Theory of Leadership

Bass' theory of leadership
states that there are three
basic ways to explain how
people become leaders

1. Some personality traits may lead people

naturally into leadership roles. This is the
Trait Theory.
16

A. Bass' Theory of Leadership

2. A crisis or important event may cause a
person to rise to the occasion, which brings
out extraordinary leadership qualities in an
ordinary person.
3. People can choose to become leaders.
People can learn leadership skills.

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17

B. Fiedlers Contingency Theory

Fiedler's contingency theory states that in order
to maximize work group performance, leaders
must be matched to the right leadership situation
Situational
Favorableness

Group
Performance

=
Leadership
Style

18

B. Fiedlers Contingency Theory

Leadership Style:
Least Preferred Coworker
Situational Favorableness

19

Leadership Style:
Least Preferred Coworker

Leadership style is the way a leader

generally behaves toward followers
seen as stable and difficult to change

Style is measured by the Least Preferred

Co-worker scale (LPC)
relationship-oriented
task-oriented
<LPC Scale Questionnaire>
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Situational Favorableness
Situational Favorableness
The degree to which a particular
situation either permits or denies a
leader the chance to influence the
behavior of group members.
Three factors:
Leader-member relations
Task structure
Position power
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Path-Goal Theory
Path-Goal Theory
A leadership theory that
states that leaders can
increase
subordinate
satisfaction
and
performance by clarifying and
clearing the paths to goals
and by increasing the
number
and
kinds
of
rewards available for goal
attainment.

22

Basic Assumptions of Path-Goal Theory

Clarify paths to goals

Clear paths to goals by solving problems

and removing roadblocks
Increase the number and kinds of rewards
available for goal attainment
Do things that satisfy followers today or will
lead to future rewards or satisfaction

Offer followers something unique and

valuable beyond what theyre experiencing
23

Path-Goal Theory
Subordinate Contingencies
Perceived Ability
Locus of Control
Experience

Leadership Styles
Directive
Supportive
Participative
Achievement-Oriented

Outcomes
Subordinate satisfaction
Subordinate performance

Environmental Contingencies
Task Structure
Formal Authority System
Primary Work Group

24

Adapting Leader Behavior:

Path-Goal Theory

Leadership
Styles

Subordinate
and
Environmental
Contingencies

Outcomes

25

Leadership Styles

Directive

clarifying expectations and guidelines

Supportive

being friendly and approachable

Participative

allowing input on decisions

Achievement-Oriented

setting challenging goals

26

Path Goal Theory:

When to Use Leadership Styles

Directive Leadership
Unstructured tasks
Inexperienced workers
Workers with low perceived ability
Workers with external locus of
control
Unclear formal authority system

Supportive Leadership
Structured, simple, repetitive
tasks
Stressful, frustrating tasks
When workers lack confidence
Clear formal authority system

Participative Leadership
Achievement-Oriented Leadership
Experienced workers
Unchallenging tasks
Workers with high perceived ability
Workers with internal locus of
control
Workers not satisfied with rewards
Complex tasks
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Subordinate and
Environmental Contingencies
Subordinate

Environmental

Perceived ability

Task structure

Locus of control

Formal authority system

Experience

Primary work group

28

Effective Leadership
The Two Important Keys to Effective Leadership
1. Trust and Confidence
2. Effective communication
Helping employees understand the company's
overall business strategy.
Helping employees understand how they
contribute to achieving key business objectives.
Sharing information with employees on both how
the company is doing and how an employee's own
division is doing relative to strategic business
objectives.
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29

Principles of Leadership
1. Know yourself and seek self-improvement

2. Be technically proficient
3. Seek responsibility and take responsibility for your

actions
4. Set the example
5. Make sound and timely decisions
6. Know your people and look out for their well-being
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30

Principles of Leadership
7. Keep your workers informed

8. Ensure that tasks are understood,

supervised, and accomplished
9. Develop a sense of responsibility in your
workers
10.Train as a team

11.Use the full capabilities of your organization

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31

END OF LECTURE.

NEXT TOPIC:

CONTROLLING AND
COORDINATING

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