Managers as Leaders

2 Who Are Leaders and What Is Leadership?

Leader - Someone who can influence others and who has managerial authority.Leadership -
What leaders do; the process of influencing a group to achieve goals.Ideally, all managers
should be leaders.Let’s begin by clarifying who leaders are and what leadership is. Our
definition of a leader is someone who can influence others and who has managerial authority.
Leadership is a process of leading a group and influencing that group to achieve its goals. It’s
what leaders do.Are all managers leaders? Because leading is one of the four management
functions, yes, ideally, all managers should be leaders. Thus, we’re going to study leaders and
leadership from a managerial perspective.

3 Early Leadership Theories

Trait Theories (1920s -1930s)Research focused on identifying personal characteristics that
differentiated leaders from non-leaders was unsuccessful.It proved impossible to identify a set
of traits that would always differentiate a leader (the person) from a nonleader.Leadership
research in the 1920s and 1930s focused on isolating leader traits— that is, characteristics—
that would differentiate leaders from nonleaders. Some of the traits studied included physical
stature, appearance, social class, emotional stability, fluency of speech, and sociability. Despite
the best efforts of researchers, it proved impossible to identify a set of traits that would always
differentiate a leader (the person)from a nonleader.

4 Eight Traits Associated with Leadership

The eight traits shown to be associated with effective leadership are described briefly in Exhibit
18-1.

5 Eight Traits Associated with Leadership

The eight traits shown to be associated with effective leadership are described briefly in Exhibit
18-1.

6 Early Leadership Theories (cont.)

Behavioral theories - leadership theories that identify behaviors that differentiated effective
leaders from ineffective leaders.University of Iowa StudiesIdentified three leadership
stylesAutocraticDemocraticLaissez-faireResearchers hoped that the behavioral theories
approach would provide more definitive answers about the nature of leadership than did the
trait theories.The University of Iowa studies explored three leadership styles to find which was
the most effective.

7 University of Iowa Studies (cont.)

Autocratic style - A leader who dictates work methods, makes unilateral decisions, and limits
employee participationDemocratic style - A leader who involves employees in decision
making, delegates authority, and uses feedback as an opportunity for coaching
employeesLaissez-faire style - A leader who lets the group make decisions and complete the
work in whatever way it sees fitThe autocratic style described a leader who dictated work
methods, made unilateral decisions, and limited employee participation. The democratic style
described a leader who involved employees in decision making, delegated authority, and used
feedback as an opportunity for coaching employees. Finally, the laissez-faire style leader let
the group make decisions and complete the work in whatever way it saw fit. The researchers’
results seemed to indicate that the democratic style contributed to both good quantity and
quality of work.
8 Early Leadership Theories (cont.)
The Ohio State studies identified two dimensions of leader behavior: Initiating structure: the
role of the leader in defining his or her role and the roles of group members. Consideration: the
leader’s mutual trust and respect for group members’ ideas and feelings. The Ohio State studies
identified two important dimensions of leader behavior. The first was called initiating structure,
which referred to the extent to which a leader defined his or her role and the roles of group
members in attaining goals. It included behavior that involved attempts to organize work, work
relationships, and goals. The second was called consideration, which was defined as the extent
to which a leader had work relationships characterized by mutual trust and respect for group
members’ ideas and feelings. A leader who was high in consideration helped group members
with personal problems, was friendly and approachable, and treated all group members as
equals. He or she showed concern for (was considerate of) his or her followers’ comfort, well-
being, status, and satisfaction.

9 Results of Ohio State Studies

High consideration/high structure leaders generally, but not always, achieved high scores on
group task performance and satisfaction. Evidence indicated that situational factors appeared
to strongly influence leadership effectiveness. The research found that a leader who was high
in both initiating structure and consideration (a high–high leader) sometimes achieved high
group task performance and high group member satisfaction, but not always.

10 University of Michigan Studies

Identified two dimensions of leader behavior: Employee oriented: emphasizing personal
relationships oriented: emphasizing task accomplishment Research findings: Leaders who are
employee oriented are strongly associated with high group productivity and high job
satisfaction. Leadership studies conducted at the University of Michigan at about the same time
as those done at Ohio State also hoped to identify behavioral characteristics of leaders that were
related to performance effectiveness. The Michigan group also came up with two dimensions
of leadership behavior, which they labeled employee-oriented and production-oriented.
Leaders who were employee-oriented were described as emphasizing interpersonal
relationships. The production-oriented leaders, in contrast, tended to emphasize the task aspects
of the job. Unlike the other studies, the Michigan researchers concluded that leaders who were
employee-oriented were able to get high group productivity and high group member
satisfaction.

11 The Managerial Grid Managerial grid - a two-dimensional grid for appraising leadership
stylesPlaces managerial styles in five categories: Impoverished management management
management club management team management behavioral dimensions from these early
leadership studies provided the basis for the development of a two-dimensional grid for
appraising leadership styles. This managerial grid used the behavioral dimensions “concern for
people” (the vertical part of the grid) and “concern for production” (the horizontal part of the
grid) and evaluated a leader’s use of these behaviors, ranking them on a scale from 1 (low) to
9 (high). Although the grid had 81 potential categories into which a leader’s behavioral style
might fall, only five styles were named: impoverished management (1,1 or low concern for
production, low concern for people), task management (9,1 or high concern for production,
low concern for people), middle-of-the-road management (5,5 or medium concern for
production, medium concern for people), country club management (1,9 or low concern for
production, high concern for people), and team management (9,9 or high concern for
production, high concernfor people). Of these five styles, the researchers concluded that
managers performed best when using a 9,9 style.
12 Behavioral Theories of Leadership
The four main leader behavior studies are summarized in Exhibit 18-2.

13 Behavioral Theories of Leadership

14 Behavioral Theories of Leadership

15 Building Trust Given the importance of trust to effective leadership, how can leaders build
trust? Exhibit 18-6 lists some suggestions. (Also, see the Building Your Skill exercise in
Chapter 5.)

16 Leadership Issues in the Twenty-First Century (cont.)

Empowering Employees Empowerment - increasing the decision-making discretion of workers
such that teams can make key operating decisions in developing budgets, scheduling
workloads, controlling inventories, and solving quality problems. As we’ve described in
different places throughout the text, managers are increasingly leading by empowering their
employees. As we’ve said before, empowerment involves increasing the decision-making
discretion of workers. Millions of individual employees and employee teams are making the
key operating decisions that directly affect their work. They’re developing budgets, scheduling
workloads, controlling inventories, solving quality problems, and engaging in similar activities
that until very recently were viewed exclusively as part of the manager’s job.

17 Leadership Issues in the Twenty-First Century (cont.)

Leading Across Cultures Effective leaders do not use a single style. They adjust their style to
the situation. National culture is certainly an important situational variable in determining
which leadership style will be most effective general conclusion that surfaces from leadership
research is that effective leaders do not use a single style. They adjust their style to the situation.
Although not mentioned explicitly, national culture is certainly an important situational
variable in determining which leadership style will be most effective. What works in China
isn’t likely to be effective in France or Canada. For instance, one study of Asian leadership
styles revealed that Asian managers preferred leaders who were competent decision-makers,
effective communicators, and supportive of employees. National culture affects leadership
style because it influences how followers will respond. Leaders can’t (and shouldn’t) just
choose their styles randomly. They’re constrained by the cultural conditions their followers
have come to expect.

18 Cross-Cultural Leadership
Exhibits 18-7 provide some findings from selected examples of cross-cultural leadership
studies. Because most leadership theories were developed in the United States, they have an
American bias.

19 Becoming an Effective Leader

Leader Training is more likely to be successful with individuals who are high self-monitors
than those who are low self-monitors. Individuals with higher levels of motivation to lead are
more receptive to leadership development opportunities. Evidence indicates that leadership
training is more likely to be successful with individuals who are high self-monitors than with
low self-monitors. Such individuals have the flexibility to change their behavior as different
situations may require. In addition, organizations may find that individuals with higher levels
of a trait called motivation to lead are more receptive to leadership development opportunities.
LEADERSHIP STYLES

2 Think of a leader that you worked for or observed…

Defining a Leader…Think of a leader that you worked for or observed…What does this person
do and what qualities does this person have that make you admire him or her as a leader?This
is basically a brainstorming question to allow the group to think about what makes good
leaders. This allows the group to start thinking about leadership styles.

3 Leadership Styles Autocratic (Authoritarian) Bureaucratic Democratic

CoerciveTransactionalTransformationalLaissez-FaireAs the study of Leadership has gone
through various paradigm shifts from a historical viewpoint, the study and perspectives of
Leadership styles have evolved as well. The first historical style that is often referenced is
Charismatic. This was most likely used because of a lack of true understanding of leadership
styles. Since then, leadership has evolved to describe many, many types.These are the seven
most referenced leadership styles. The first six listed are active type styles while the seventh
(Laissez-Faire) is more of an inactive type. It is also important to consider when and how the
styles were studies to understand how they evolved and based on what beliefs and
assumptions.The study of leadership is almost as old as mankind, but only in the past couple
of centuries has the study of leadership styles, traits, and behaviors really been studies,
documented, and theorized.In 1939, Kurt Lewin, a renowned social scientist identified three
different styles of leadership, including Authoritarian, Democratic and Laissez-Faire. His
results indicated that the democratic style is superior to the other two styles. (click mouse for
the three styles to be highlighted.)Daniel Goleman is also notorious for his article, “Leadership
that Gets Results,” where he targets six leadership styles, including Authoritative, Democratic,
and Coercive. (click mouse)Probably most recently, there has been a significant emphasis
placed on examining the differences between Transactional and Transformational Leadership
ideas. (click mouse)What is interesting and important to know about leadership is that
paradigms continue to shift. As society changes, leadership changes, so naturally the study and
theories about leadership change as well. Fifty years from now, it is likely that new leadership
styles will have evolved, or society might possible return to adopting old ideas and leadership
styles. Go to any bookstore and you will find numerous attempts of scholars and writers trying
to capture the “essence” and “answers” to the intriguing field that has yet to be and probably
never will be “nailed-down.”The following slides will attempt to capture the ideas of each of
these seven recognizable leadership styles.

4 Autocratic (Authoritarian)
Manager retains power (classical approach)Manager is decision-making authorityManager
does not consult employees for inputSubordinates expected to obey orders without
explanationsMotivation provided through structured rewards and punishmentsAutocratic
Leadership is often considered the “classical approach,” but this leadership style has been
greatly criticized during the past 30 years. Often referred to as the Authoritative Style, or
Directive Style, it relies heavily on old ideas and beliefs. Put simply, the style
communications….”the leaders is the boss.”Often, people tend to think of this style as a vehicle
for yelling, using demeaning language, and leading by threats and abuse of power. Those ideas
are not the authoritative style, but the structure and limited follower participation leaves one
not to be surprised by those accusations. The main ideas that circulate around Autocratic
Leadership are:It uses the classical approach where the manager retains as much power and
decision-making authority as possible.The manager does not consult employees, nor are they
allowed to give any input. There is a one-way flow of communication.Subordinates are
generally expected to obey orders without any explanations.The motivational environment is
produced by creating a structured set of rewards and punishments.Notice that the description
of Autocratic Leaders use the term, managers. Autocratic Leadership fits nicely in to the ideas
of management where it is expected that subordinate obedience results from orders and
expectations set by the leader. On the flip-side, the term subordinate is used—showing that the
relationship between leaders and followers is strictly business.Some studies say that
organizations with many autocratic leaders have higher turnover and absenteeism than other
organizations. Certainly Gen X employees have proven to be highly resistant to this
management style.These studies say that autocratic leaders:--Rely on threats and punishment
to influence employees--Do not trust employees--Do not allow for employee inputYet,
autocratic leadership is not all bad. Sometimes it is the most effective style to use.

5 When to use Autocratic New, untrained employees

Employees are motivatedEmployees do not respond to any other leadership styleHigh-volume
production needsLimited time for decision makingManager’s power is challenged by an
employeeIn reality, the Autocratic style should normally only be used on rare occasions.
Having said that, there are always situations where a quick and confident decision is needed.
In other situations, there may be factors such as the follower’s development level, knowledge
level, and skill level that leave leaders with few other choices than to use the style.The
autocratic leadership style should NOT be used when:--Employees become tense, fearful, or
resentful--Employees expect to have their opinions heard--Employees begin depending on their
manager to make all their decisions--There is low employee morale, high turnover and
absenteeism and work stoppageLets look at some examples of where Autocratic Leadership
might be used…

6 Who are Autocratic Leaders?

Can you think of some Autocratic Leaders?SchoolsParentsWhere are some
places/organizations where we might need Autocratic Leaders?Many military leaders are
considered Autocratic Leaders.Why would it be advantageous to use an Autocratic Style in the
military?Prison systems almost have to use an autocratic style, along with other places where
it is too risky to leave anything questionable and unanswered.Factories often require high
volume production on a daily basis—we often see autocratic leadership styles used to increase
efficiency

7 Bureaucratic Manager manages “by the book¨

Everything must be done according to procedure or policyIf it isn’t covered by the book, the
manager refers to the next level above him or herPolice officer more than leaderYou want your
organization to keep their “nose out of trouble?”....find a Bureaucratic Leader!Bureaucratic
leadership is where the manager manages “by the book.” Everything must fall according to
procedure or policy. I it is not covered by the book, the manager refers to the next level above
him or her.When considering leadership traits, Integrity is often listed as one of the most
valuable traits a leader could possess. Bureaucratic leaders demonstrate the meaning of
integrity beautifully. When do we need leaders with an abundance of integrity and when do we
want Bureaucratic Leaders?....

8 When to use Bureaucratic

Performing routine tasksNeed for standards/proceduresUse of dangerous or delicate
equipmentSafety or security training being conductedTasks that require handling cashThe
bureaucratic style is most effective when there is a need to be concerned about procedure,
safety, and specific, technical tasks.This style is ineffective when:--Work habits form that are
hard to break, especially if they are no longer useful.--Employees lose their interest in their
jobs and in their fellow workers.--Employees do only what is expected of them and no more.

9 Who are Bureaucratic Leaders?

Can you think of some Bureaucratic Leaders?Police were already mentionedAdministrative
positionsWhere are some places/organizations where we might need Bureaucratic
Leaders?Law enforcement absolutely needs bureaucratic leaders. In their professions, law
enforcers do not have room to “wiggle their toes,” and they must be sure to dot their I’s and
cross their T’s.It is important to consider how important it is for organizations that are funded
by state tax dollars to have some bureaucratic leaders to monitor and lead others to be efficient
and effective.Anytime there is an exchange of money, or someone is required to manage
money, we hope to have bureaucratic leaders, or people with bureaucratic skills in those
positions.On a side note, what kind of connections might there be between bureaucratic
leadership and stress management?!

10 Democratic Often referred to as participative style

Keeps employees informedShares decision making and problem solving
responsibilities“Coach” who has the final say, but…Gathers information from staff members
before making decisionsLike the other styles, the democratic style is not always appropriate,
but it has many valuable benefits.It is most successful when used with highly skilled or
experienced employees or when implementing operational changes or resolving individual or
group problems.Because a democratic leader welcomes team input and facilitates group
discussion, it is often referred to as a participative leadership styleDemocratic leaders are
constantly keeping employees informed about matters that affect them. They are consistently
sharing plans with the group and offering multiple options for group consideration.Even though
the Democratic leader still makes the final decision, they use a coaching style to encourage
followers to take part in influencing and guiding decision making process. Generally before
making a final decision, the leader will consult followers and gather information from
them.There are so many great qualities about the democratic leadership style…that the list goes
on…

11 Democratic Continued Help employees evaluate their own performance

Allows employees to establish goalsEncourages employees to grow on the job and be
promotedRecognizes and encourages achievementCan produce high quality and high quantity
work for long periods of timeOne of the interesting ideas about Democratic Leadership is the
use of a “coach” style of leadership. Not only is the leader concerned about being effective and
efficient, but they are also concerned about the development of their followers through the
tasks.Democratic leaders commonly works with followers to help them set goals, not only for
their organization, but personal achievement goals as well.Democratic leaders encourage
growth in employees/followers by encouraging them to work freely with each other and leave
division of tasks to the group—allowing more sharing and collaboration among followers or
group members.In order to continuously encourage growth, democratic leaders make it a point
to praise and offer constructive criticism. In addition, they will join in group activities without
over-participating.Let’s begin thinking about when we might value a democratic leadership
style….

12 When to use Democratic To keep employees informed

To encourage employees to share in decision-making and problem-solvingTo provide
opportunities for employees to develop a high sense of personal growth and job
satisfactionComplex problems that require a lots of inputTo encourage team building and
participation.A democratic leadership style allows for multiple viewpoints, inputs, and
participation, while still maintaining control and the leadership role. A quality democratic
leader will recognize each member’s strengths and effectively encourage the best from each
member. It is important for the leader to be able to recognize those strengths and focus on the
needs of the group’s members.On the other hand, it is sometimes a challenge for democratic
leaders to recognize that not all tasks need to be handled by the group, and that sometimes the
leader should appropriately address some issues along.Democratic leadership should not be
used when:--There is not enough time to get everyone’s input.--It’s easier and more cost-
effective for the manager to make the decision.--The business can’t afford mistakes.--The
manager feels threatened by this type of leadership.--Employee safety is a critical concern.

13 Who are Democratic Leaders?

Obviously, our country was founded out of democratic ideas. Our government acts as a
democracy that encourages involvement and allows every American to actively participate and
voice their concerns, if they choose to do so.Does this mean that all of our political leaders are
democratic leaders?A democratic leadership style is also commonly used in situation where
the leader needs too and wants to encourage team building. There is no better way to encourage
true team collaboration than allowing the members to be actively involved in a group processes
and decisions.

14 The ear of the leader must ring with the voices of the people.
Woodrow Wilson

15 Coercive Power from a person’s authority to punish

Most obvious types of power a leader has.Good leaders use coercive power only as a last
resort:In today’s sophisticated and complex workplace, excessive use of coercive power
unleashes unpredictable and destabilizing forces which can ultimately undermine the leader
using it.The coercive leadership style, focuses on the use, and possibly abuse of power. While
coercive power can produce results in the short term, it relies on intimidation to do so and will
backfire badly if used as the sole base for exerting influence.At first glance, most people
incorrectly assume that a leader can only be effective if he or she has access to the formal
“levers of power”: Legitimate Power, which comes from the position a person holds; Reward
Power, which comes from his or her ability to give rewards; Information Power, which comes
from exclusive access to information; and Coercive Power. The best leaders rely on more
subtle forms of power:Expert Power: Where followers do what they’re asked because they
respect the leader’s knowledge and expertise and, because of such, trust him or her to give the
best guidance; andReferent Power: Where followers admire and seek to emulate the leader,
and want to receive his or her approval.Good leaders use coercive power only as a last resort
because coercion reduces employees’ satisfaction with their jobs, leading to lack of
commitment and general employee withdrawal. Think about how you feel when you get
“coerced” into doing something. How would you like to be led that way?...

16 When to use Coercive To meet very short term goals

When left with no other choiceIn times of crisisObviously, by the shortness of the list on this
slide, coercive leadership is not highly desirable, nor is it commonly used. However, there are
still times when a coercive style could be valuable…In times of economic crisis or threats to
the survival of the organization at large, coercion may come to the forefront. Coercive power
may also materialize as organizations attempt to streamline their operations for efficiency. In
those types of situations, it employees must be fired, those who fail to conform to the
organizational goals for survival will be most likely candidates for termination.The threat of
termination for failure to comply, in turn, is coercive power.Where might we see coercive
power used today?.....

17 Who are Coercive Leaders?

Coercive leaders are not nearly as recognizable as others, probably because it is not the most
highly desirable leadership style to exemplify.The first illustration represents chaos and crisis.
We know that there have been many instances where crisis has occurred. For example, think
about the New Orleans situation when Hurricane Katrina hit last summer. Considering the state
of emergency those Americans were in, do you think it was valuable to have coercive leaders
present?Although Donald Trump may not be a coercive leader, the phrase he is most famous
for demonstrates the ideas of a coercive leader, “You’re Fired!” Unfortunately, there are times
when the need to take action arise—in those times, we may need coercive leadership styles
present to get it done.You’re Fired!

18 TransactionalMotivate followers by appealing to their own self-interestMotivate by the

exchange process.EX: business owners exchange status and wages for the work effort of the
employee.Focuses on the accomplishment of tasks & good worker relationships in exchange
for desirable rewards.Encourage leader to adapt their style and behavior to meet expectations
of followersSome researchers added to Burns original theory and it is thought by many today
that transactional leadership can encompass four types of behavior.1. Contingent Reward – To
influence behavior, the leader clarifies the work needed to be accomplished. The leader uses
rewards or incentives to achieve results when expectations are met.2. Passive Management by
Exception - To influence behavior, the leader uses correction or punishment as a response to
unacceptable performance or deviation from the accepted standards.3. Active Management by
Exception - To influence behavior, the leader actively monitors the work performed and uses
corrective methods to ensure the work is completed to meet accepted standards.4. Laissez-
Faire Leadership – The leader is indifferent and has a “hands-off” approach toward the workers
and their performance. This leader ignores the needs of others, does not respond to problems
or does not monitor performance.Transactional leadership behavior is used to one degree or
another by most leaders. However, as the old saying goes, “if the only tool in your workbox is
a hammer…you will perceive every problem as a nail”. A leader should not exclusively or
primarily practice transactional leadership behavior to influence others! Here are a few
common problems of those who do so. Some use transactional leadership behavior as a tool to
manipulate others for selfish personal gain. It can place too much emphasis on the “bottom
line” and by its very nature is short-term oriented with the goal of simply maximizing efficiency
and profits. The leader can pressure others to engage in unethical or amoral practices by
offering strong rewards or punishments. Transactional leadership seeks to influence others by
exchanging work for wages, but it does not build on the worker’s need for meaningful work or
tap into their creativity. If utilized as the primary behavior by a leader it can lead to an
environment permeated by position, power, perks and politics. The most effective and
beneficial leadership behavior to achieve long-term success and improved performance is
transformational leadership.

19 When to use Transactional

Leader wants to be in controlWhen there are approaching deadlines that must be
metRelationship is short term“If I do this for you…what can you do for me?”Music to your
ears? Probably not!, but it is something you might hear from a Transactional Leader!So, when
would we want to hear those words?Most of the consideration of when the style would be used
is based on the leader themselves. Since the transactional leader views the leader-follower
relationship as a process of exchange, they would choose to use it in situations where
relationships are of little importance and are short-lived.You might be noticing a trend among
some of the leadership styles by now. The Transactional leadership style closely parallels some
of the ideas, pertaining to relationships, as the autocratic, bureaucratic, and coercive
styles.Let’s look now at the other style, often studied in conjunction with Transactional
Leaders…Transformational…

20 A Result of the Leadership We Knew...

“We made workers into robots; we made them into machines…This quote illustrates the ideas
of transactional leadership and the effects it has on individuals and organizations…

21 Jack Smith, CEO, General Motors

...Now, we want them to become a different kind of person: to come up with new ideas.”Jack
Smith, CEO, General MotorsHow interesting! With new expectations, new demands, and new
paradigms in leadership, the next leadership style offers a lot to the current and maybe futuristic
views of leadership studies….

22 Transformational Charismatic and visionary

Inspire followers to transcend their self-interest for the organizationAppeal to followers' ideals
and valuesInspire followers to think about problems in new or different waysCommon
strategies used to influence followers include vision and framingTransformational leadership
is about hearts and minds, about empowering people not controlling them. 4 theories of
Transformational Leadership included: Management by Command — Unsophisticated
management in which subordinates are told what to do and have little say in what and
when. Management by Objectives — Process management in which subordinates are given
goals and decide how to achieve them. Management by Communication — Sophisticated
organizations in which skilled subordinates deduce their own goals by learning about the needs
of the organization. 4. Management by Vision — In which management is about inspiring
people to achieve what only they know they can achieve by concentrating on what is
possible. Transformational leaders are more visionary and inspirational in approach. They tend
to communicate a clear and acceptable vision and goals, with which employees can identify
and tend to engender intense emotion in their followers. Rather than exchanging rewards for
performance, transformational leaders attempt to build ownership on the part of group
members, by involving the group in the decision process. When transformational leaders are
successful, they are able to move followers from external to internal control.Research indicates
that transformational leadership is more strongly correlated with lower turnover rates, higher
productivity, and higher employee satisfaction.

23 Transformational cont.
Instils feelings of confidence, admiration and commitmentStimulates followers intellectually,
arousing them to develop new ways to think about problems.Uses contingent rewards to
positively reinforce desirable performancesFlexible and innovative.While it is important to
have leaders with the appropriate orientation defining tasks and managing interrelationships, it
is even more important to have leaders who can bring organizations into futures they have not
yet imagined. Transformational leadership is the essence of creating and sustaining competitive
advantage.

24 When to use Transformational

When leaders want members to be an active part of the organization and have ownership to
itWhen leaders are building a sense of purposeWhen the organization has a long term
planWhen people need to be motivatedToday, the phrase, “the only constant is change,” seems
truer and truer. Change is inevitable, therefore, we should seek leadership and use leadership
styles that embrace change.Changing organizations to be motivational when members are
resistant, to be purposeful when members are not directed, and to be visionary for long term
goals. Transformational leadership can be one of the best resources for organizational
change.Because it lends itself to successful change, the latest paradigm shift has directed
scholars toward focusing on transformational leadership more than they ever have.

25 (Comment by President John Adams about George Washington)

"(He) possessed the gift of silence." (Comment by President John Adams about George
Washington)

26 Laissez-Faire Also known as the “hands-off¨ style

Little or no directionGives followers as much freedom as possibleAll authority or power is
given to the followersFollowers must determine goals, make decisions, and resolve problems
on their own.A successful laissez-faire leader is often popular, even charismatic, and inspires
people rather than directs them. They believe people know what to do and will do it without
too much direction.The laissez-faire leadership style is also know as the “hands-off” style. It is
one in which the manager provides little or no direction and gives employees as much freedom
as possible. The authority of power is given to the employees and they must determine goals,
make decisions, and resolve problems on their own.

27 When to use Laissez-Faire

Employees are highly skilled, experienced, and educatedEmployees have pride in their work
and the drive to do it successfully on their ownOutside experts, such as staff specialists or
consultants are being usedEmployees are trustworthy and experiencedThis is an effective style
to use when:--Employees are highly skilled, experienced, and educated.--Employees have
pride in their work and the drive to do it successfully on their own.--Outside experts, such as
staff specialists or consultants are being used--Employees are trustworthy and
experienced.This style should not be used when:--It makes employees feel insecure at the
unavailability of a manager.--The manager cannot provide regular feedback to let employees
know how well they are doing.--Managers are unable to thank employees for their good work.-
-The manager doesn’t understand his or her responsibilities and is hoping the employees can
cover for him or her.Some risks are involved with Laissez-Faire Leadership. Followers may
like them, but some people find events around them confusing and chaotic. They also may feel
that the leader does not respect their time and energy. Most importantly, they may not see where
their contribution fits and slowly become less committed and enthusiastic.

28 Other Referenced Theories

Theory X and Theory YTheory X and Theory Y each represent different ways in which leaders
view employees.Theory X is the traditional view of direction and control by managers.Theory
Y is the view that individual and organizational goals can be integrated.Douglas McGregor
described Theory X and Theory Y in his book, The Human Side of Enterprise.Theory X
managers believe that employees are motivated mainly by money, are lazy, uncooperative, and
have poor work habits. Theory Y managers believe that subordinates work hard, are
cooperative, and have positive attitudes.

29 Tight control, lots of rules, no freedom

Management/LeaderTight control, lots of rules, no freedomTheory X is the traditional view of
direction and control by managers.1. The average human being has an inherent dislike of work
and will avoid if he or she can. 2. Because of this human characteristic of dislike of work, most
people must be controlled, directed, and threatened with punishment to get them to put forth
adequate effort toward the achievement of organizational objectives. 3. The average human
being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants
security above all.Theory X leads naturally to an emphasis on the tactics of control - to
procedures and techniques for telling people what to do, for determining whether they are doing
it, and for administering rewards and punishment. Theory X explains the consequences of a
particular managerial strategy. Because its assumptions are so unnecessarily limiting, it
prevents managers from seeing the possibilities inherent in other managerial strategies. As long
as the assumptions of Theory X influence managerial strategy, organizations will fail to
discover, let alone utilize, the potentialities of the average human being.Staff/FollowersAlan
Chapmen

30 Lots of freedom, creativity & responsibility

Staff/FollowersLots of freedom, creativity & responsibilityTheory Y is the view that individual
and organizational goals can be integrated.1. The expenditures of physical and mental effort in
work are as natural as play or rest. 2. External control and the threat of punishment are not the
only means for bringing out effort toward organizational objectives. 3. Commitment to
objectives is a function of the rewards associated with their achievement. 4. The average human
being learns, under proper conditions, not only to accept but also to seek responsibility. 5. The
capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the
solution of organizational problems in widely, not narrowly, distributed in the population. 6.
Under the condition of modern industrial life, the intellectual potentialities of the average
human being are only partially utilized.Theory Y's purpose is to encourage integration, to create
a situation in which an employee can achieve his or her own goals best by directing his or her
efforts toward the objectives of the organization. It is a deliberate attempt to link improvement
in managerial competence with the satisfaction of higher-level ego and self-actualization needs.
Theory Y leads to a preoccupation with the nature of relationships, with the creation of an
environment which will encourage commitment to organizational objectives and which will
provide opportunities for the maximum exercise of initiative, ingenuity, and self-direction in
achieving them.Management/LeaderAlan Chapmen

31 Other Referenced Theories

Hersey-BlanchardSituational LeadershipBased on the amount of direction (task-behavior) and
amount of socio-emotional support (relationship-behavior) a leader must provide given the
situation and the "level of maturity" of the followers.

32 Hersey-Blanchard Situational Leadership

To determine the appropriate leadership style to use in a given situation, the leader must first
determine the maturity level of the followers in relation to the specific task that the leader is
attempting to accomplish through the effort of the followers. As the level of followers' maturity
increases, the leader should begin to reduce his or her task behavior and increase relationship
behavior until the followers reach a moderate level of maturity. As the followers begin to move
into an above average level of maturity, the leader should decrease not only task behavior but
also relationship behavior.Once the maturity level is identified, the appropriate leadership style
can be determined. The four leadership styles are telling, selling, participating, and delegating.
High task/low relationship behavior (S1) is referred to as "telling." The leader provides clear
instructions and specific direction. Telling style is best matched with a low follower readiness
level. High task/high relationship behavior (S2) is referred to as "selling." The leader
encourages two-way communication and helps build confidence and motivation on the part of
the employee, although the leader still has responsibility and controls decision making. Selling
style is best matched with a moderate follower readiness level. High relationship/low task
behavior (S3) is referred to as "participating." With this style, the leader and followers share
decision making and no longer need or expect the relationship to be directive. Participating
style is best matched with a moderate follower readiness level. Low relationship/low task
behavior (S4) is labelled "delegating." This style is appropriate for leaders whose followers are
ready to accomplish a particular task and are both competent and motivated to take full
responsibility. Delegating style is best matched with a high follower readiness level.

33 Selecting a Style Some people are motivated by reward

Some people are motivated by punishment social systems work best with a chain of command
when people have agreed to do a job, a part of the deal is that they cede authority to their leader
Managerial Grid

2 Concept ConceptionAt the end of World War II, management theorists began to embrace a
serious paradigm shift away from the more traditional autocratic approaches to
management.Studies were created and conducted to explore the development of leadership
styles that measured business management’s approach to the individuals working for them
about the performance results of the business manager.

3 Concept ConceptionThe treatment of task orientation and people orientation as two

independent dimensions was a major step in leadership studies.Many of the leadership studies
conducted in the 1950s at the University of Michigan and the Ohio State University focused
on these two dimensions.

4 Managerial Grid : A brief Insight

Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of leadership styles
through a managerial grid (sometimes called leadership grid).The grid depicted two dimensions
of leader behavior, concern for people on y-axis and concern for production on x-axis, both
ranging from low (1) to high (9), thus creating 81 different positions in which the leader’s style
may fall.

6 Managerial Grid : A brief Insight

“The Grid” is offered as a model of scientifically verified principles to be learned for effective
managerial behaviour.The Managerial Grid fundamentally asserts that managers have two
central motivations:The desire to obtain one’s own goalThe desire to use the organizational
hierarchy best in an effort to maximize production with and through interpersonal relationships

7 Styles Of ManagementBy mapping these two primary concerns upon the Grid, five discrete
styles of management behaviour result:Impoverished Management (1, 1):Managers with this
approach are low on both the dimensions and exercise minimum effort to get the work done
from subordinates.The leader has low concern for employee satisfaction and work deadlines
and as a result disharmony and disorganization prevail within the organization.The leaders are
termed ineffective wherein their action is merely aimed at preserving job and seniority.

8 Styles Of Management Task management (9, 1):

Also called dictatorial or perish style. Here leaders are more concerned about production and
have less concern for people.The style is based on theory X of McGregor. The employees’
needs are not taken care of and they are simply a means to an end.The leader believes that
efficiency can result only through proper organization of work systems and through elimination
of people wherever possible.Such a style can definitely increase the output of organization in
short run but due to the strict policies and procedures, high labor turnover is inevitable.

9 Styles Of Management Middle-of-the-Road (5, 5):

This is basically a compromising style wherein the leader tries to maintain a balance between
goals of company and the needs of people.The leader does not push the boundaries of
achievement resulting in average performance for organization.Here neither employee nor
production needs are fully met.

10 Styles Of Management Country Club (1, 9):

This is a collegial style characterized by low task and high people orientation where the leader
gives thoughtful attention to the needs of people thus providing them with a friendly and
comfortable environment.The leader feels that such a treatment with employees will lead to
self-motivation and will find people working hard on their own.However, a low focus on tasks
can hamper production and lead to questionable results.

11 Styles Of ManagementTeam Management (9, 9):Characterized by high people and task

focus, the style is based on the theory Y of McGregor and has been termed as most effective
style according to Blake and Mouton.The leader feels that empowerment, commitment, trust,
and respect are the key elements in creating a team atmosphere which will automatically result
in high employee satisfaction and production.Each style is defined by two numbers separated
with a comma, with the first number indicating the production concerns of the supervisor, and
the second number representing that particular manager’s concern for people.

12 Advantages & Limitations

The Managerial or Leadership Grid is used to help managers analyze their own leadership
styles through a technique known as grid training.This is done by administering a questionnaire
that helps managers identify how they stand with respect to their concern for production and
people.The training is aimed at basically helping leaders reach to the ideal state of 9,
9.Limitations:The model ignores the importance of internal and external limits, matter and
scenario.Also, there are some more aspects of leadership that can be covered but are not.
 CHAPTER 13 MANAGERIAL COMMUNICATION
Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus
4e by Bartol, Tein, Matthews, Martin

2 LECTURE OUTLINE Nature of managerial communication

Influences on individual communication & interpersonal processesGroup communication
networksOrganisational communication channelsPage 430Copyright © 2005 McGraw-Hill
Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews,
Martin

3 MANAGERIAL COMMUNICATION
Nature of communication:Exchange of messages between people to achieve common
meanings.Unless meanings are shared, managers cannot influence others.Therefore
communication is critical to a manager’s job.Managers spend up to 85% of their time
communicating.Good organisational communication and interpersonal processes are crucial to
organisational effectiveness.Effective communication is vital to all major management
functions; it is especially important to the leading function as it is the channel for interaction
with and impact upon others.Further discussion can be found on pagesCopyright © 2005
McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein,
Matthews, Martin

4 MANAGERIAL COMMUNICATION
Types of communication:Verbal:Written or oral use of words to communicateNon-
verbal:Communication by means of elements and behaviours that are not coded into wordsPage
433Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim
Focus 4e by Bartol, Tein, Matthews, Martin

5 MANAGERIAL COMMUNICATION
Written (verbal) communication:FormsLetters, memos, reports, newsletters,
manualsAdvantagesProvides a record, easily circulated, time to consider
contentDisadvantagesCost, poor writing skills, unintended effect, impersonalityDespite its
advantages, written communication costs are high; the cost of producing a single memo is
estimated to be $81.90!Given the advantages and disadvantages of written and oral
communication, it is not surprising that managers use both types.Further discussion can be
found on page 433.Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management:
A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

6 MANAGERIAL COMMUNICATION
Non-verbal communication:Kinesic behaviour (body language)Proxemics (proximity &
space)Paralanguage (vocal aspects)Object language (use of objects to
communicate)PagesCopyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management:
A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

7 MANAGERIAL COMMUNICATION
Managers spend much time communicating in some form. Studies show that they prefer oral
to written communication, largely because oral communication is more informal and timely.
Managers serve as communication centres through the managerial roles such as monitor,
disseminator and spokesperson.Further discussion can be found on page 434.Copyright © 2005
McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein,
Matthews, Martin
8 MANAGERIAL COMMUNICATION
Components of
communication:SenderEncodingMessageReceiverDecodingNoiseFeedbackPagesCopyright ©
2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol,
Tein, Matthews, Martin

9 MANAGERIAL COMMUNICATION
Sender/receiverNoiseNoiseEncoding messageFeedbackMediumFeedbackAs well as the
normal communication difficulties of encoding, decoding, noise and subordinate reluctance to
give negative information, situational stresses may cause communication breakdown.Further
discussion can be found on pagesDecoding messageNoiseSender/receiverNoiseCopyright ©
2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol,
Tein, Matthews, Martin

10 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Perceptual processesAttribution processesSemanticsCultural contextCommunication
skillsPage 436Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A
Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

11 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Perceptual processes:Processes individuals use to acquire and make sense out of information
from the environmentThree stages:Selecting, organising, interpretingDistortions:Stereotyping,
halo effect, projection, perceptual defenceHow is it that some people get a particular
communication and others do not? While miscommunications may be caused by misdirected
mail and lost messages, they may also result from individual factors influencing organisational
communication.Further discussion can be found on pagesCopyright © 2005 McGraw-Hill
Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews,
Martin

12 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Three stages of perception:SelectingFiltering of stimuli so that only some information gets our
attentionOrganisingPatterning of information to match familiar patternsInterpretingGiving
meaning to selected and organised informationPagesCopyright © 2005 McGraw-Hill Australia
Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

13 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Distortions:StereotypingTendency to attribute characteristics to an individual on the basis of
an assessment of the group to which they belongHalo effectTendency to use a general
impression based on one or a few characteristics of an individualPage 437Copyright © 2005
McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein,
Matthews, Martin

14 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Distortions:ProjectionTendency of an individual to assume others share their thoughts, feelings
and characteristicsPerceptual defenceTendency to block out or distort information one finds
threateningPage 437Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management:
A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

15 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Attribution processTheory attempting to explain how individuals make judgments or
attributions about the cause of another’s, or their own, behaviourFundamental attribution
error:Tendency to underestimate situational influences & to overestimate dispositional
influences.Self-serving bias:Attributing oneself as responsible for successes & others for
failures.Attribution theory is one way to understand how perceptions influence managerial
communication and interpersonal processes. It explains how people make judgments or
attributions about causes of the behaviour of another or themselves. These judgments form a
basis for later actions.Further discussion can be found on pagesCopyright © 2005 McGraw-
Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein,
Matthews, Martin

16 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

SemanticsSemantic netNetwork of words and word meanings a given individual has available
for recallSemantic blocksBlockages or communication difficulties arising from word
choicesWords are symbols, so their meanings differ for everyone. Semantics is the study of
meanings and word choice.Within organisations, a common cause of semantic blocks is the
use of professional jargon, or language related to a specific profession but unfamiliar to
outsiders.Further discussion can be found on pagesCopyright © 2005 McGraw-Hill Australia
Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

17 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Cultural contextCulture also influences communication and interpersonal processes.High-
context culturesEmphasis in communication is the establishment & strengthening of
relationshipsLow-context culturesEmphasis is on exchanging informationOne means of
cultural influence is the importance of the communication context. Context includes situational
factors such as participants’ roles, existing relationships, and non-verbal
communication.Further discussion can be found on pagesCopyright © 2005 McGraw-Hill
Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews,
Martin

18 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Low- Germany USA S. America Asia High-context contextcultures Australia France Saudi
China culturesArabiaPage 441Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a
Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

19 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Communication skillsListening skillsActive listeningFeedbackGiving & receivingPositive &
negative feedbackPage 441Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a
Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

20 INDIVIDUAL COMMUNICATION & INTERPERSONAL PROCESSES

Communication skills:Active listening: ‘…listeneractively participates inattempting to grasp
facts &the speaker’s feelings’EffectivecommunicationFeedback: both giving &receiving is
important.Deal with ‘…specific,observable behaviour,not generalities.’Importance of
seekingcustomer feedbackPage 441Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs
t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

21 GROUP COMMUNICATION NETWORKS

Pattern of information flow among task-group membersCentralised networksDecentralised
networksWhen tasks need several people’s input, managers must look at the communication
network, the information flow patterns among task group members.Further discussion can be
found on pagesCopyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A
Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

22 GROUP COMMUNICATION NETWORKS

CentralisedXChainY X Y XWheelAll-channelDecentralisedCircleThree networks are fairly
centralised, as most messages pass through one person. The last two networks are decentralised
since communication flows readily between members.For simple, routine tasks, centralised
networks are faster and more accurate.For complex tasks, decentralised networks are faster and
more accurate.It is interesting to note that morale was found to be higher in decentralised
networks, regardless of task type.Further discussion can be found on pagesCopyright © 2005
McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein,
Matthews, Martin

23 ORGANISATIONAL COMMUNICATION CHANNELS

Patterns of organisational communication flow representing potential established conduits
through which managers and other organisation members can send and receive
informationVertical communicationHorizontal communicationInformal communicationWhen
information does not reach individuals needing it, effectiveness and efficiency problems
emerge. Organisational communication patterns are called channels as they are ways managers
and other members can send and receive information.Further discussion can be found on page
444.Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim
Focus 4e by Bartol, Tein, Matthews, Martin

24 ORGANISATIONAL COMMUNICATION CHANNELS

Vertical communication:Message exchange between two or more levels of the organisational
hierarchy.Page 445Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management:
A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

25 ORGANISATIONAL COMMUNICATION CHANNELS

Vertical communication:Downward communicationCan be distorted by faulty message due to
sender errorManagers overuse downward communicationFiltering (deliberate or
accidental)Upward communicationCan be distorted by ‘only’ favourable messages going
upManagers don’t encourage upward flowPage 445Copyright © 2005 McGraw-Hill Australia
Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

26 ORGANISATIONAL COMMUNICATION CHANNELS

Horizontal communication:Lateral or diagonal message exchange within work-unit
boundaries, involving peers reporting to the same supervisor, or across work-unit boundaries,
involving individuals who report to different supervisors.Impeding factors:RivalryIndifference
to work of othersLow motivation due to discouragement of horizontal communicationPage
446Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim
Focus 4e by Bartol, Tein, Matthews, Martin

27 ORGANISATIONAL COMMUNICATION CHANNELS

Informal communication (grapevine):Communication which takes place without regard to
hierarchical or task requirementsProblems:Can carry gossip/distorted
informationBenefits:Valuable tool for continuation/propagation of cultureVertical and
horizontal communication patterns are formal patterns that follow hierarchy and structure. In
contrast, informal communication, or the grapevine, occurs without reference to hierarchy or
task requirements; i.e. it relates to personal, not positional, issues.All organisations have
grapevines and the patterns can be both vertical and horizontal.Overall, grapevines are fast,
carry large amounts of information, and yield data that is between 50 and 90 per cent
accurate.Further discussion can be found on page 448.Copyright © 2005 McGraw-Hill
Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews,
Martin

28 ORGANISATIONAL COMMUNICATION CHANNELS

Using electronics to communicate:Electronic mail systemsVoice
mailTeleconferencingVideoconferencingPage 450Copyright © 2005 McGraw-Hill Australia
Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

29 ORGANISATIONAL COMMUNICATION CHANNELS

Electronic mailGroupwareElectroniccommunicationInternetElectronic advances have given
managers new communication methods, channels and concerns. Anyone with a computer
terminal can write and send a message to anyone else with a computer mailbox. In an early
study, managers said they saved about seven hours a week, as their electronic mail system
increased decision-making speed.Further discussion can be found on page 450.Voice
mailVideoconferencingTeleconferencingCopyright © 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin

30 LECTURE SUMMARY Nature of managerial communication

Verbal, non-verbalIndividual communication & interpersonal processesAttribution
processSemanticsCultural contextCommunication skillsPage 454Copyright © 2005 McGraw-
Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein,
Matthews, Martin

31 LECTURE SUMMARY Group communication

NetworksOrganisational communication channelsVerticalHorizontalInformalPage
454Copyright © 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim
Focus 4e by Bartol, Tein, Matthews, Martin