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Chapter 2

Leadership and Management: A Framework for


Action

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accessible website, in whole or in part.
Objectives (1 of 2)
• After completing this chapter, you will be able to:
– Differentiate between leadership and management
– Define leadership as a relational concept
– Describe the evolution of leadership theory from trait theory to
contingency theory
– Describe contemporary conceptions in leadership theory

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Objectives (2 of 2)
– Solve problems according to the 8-Step Strategic Problem Solving
Method
– Appreciate current research findings in leadership literature
– Understand how to sustain successful leadership

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accessible website, in whole or in part.
Purpose
• Define and distinguish concepts of leadership and management
• Identify theoretical traditions
• Consider role of organizational culture
• Explain larger set of roles leaders play in health care organizations
• Summarize recent research on healthcare and leadership

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accessible website, in whole or in part.
Introduction
• Managers often expected to exhibit leadership via directing others
• Understanding leadership extends beyond understanding of
traditional managers
– Leadership includes additional skills and responsibilities than
management alone
– Leadership can be demonstrated by individuals in non-management
positions

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accessible website, in whole or in part.
Leadership versus Management
• Leadership
– Process in which one engages others to set and achieve a common
goal
• Management
– Process of accomplishing predetermined objectives through the
effective use of human, financial, and technical resources
• Leadership and management functions may overlap

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accessible website, in whole or in part.
Leadership in Organizations
• Front-line managers directly supervise care providers
• Middle managers responsible for entire units within healthcare
organization
– Make up majority of managers
• Top managers responsible for managing entire organization
– Often referred to as C-suite

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accessible website, in whole or in part.
Theories of Leadership
• Those in leadership roles evoke images of larger than life
personalities
• Important to examine range of leaders, both successful and not
successful
• Leadership theories:
– Trait theories
– Behavioral theories
– Contingency theories

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accessible website, in whole or in part.
Contemporary Theories of Leadership

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accessible website, in whole or in part.
Leadership Roles
• Goal setting:
– Goals
• Larger aspirations of organization
– Objectives
• Subordinate goals that must be accomplished to meet larger aspirations
– “Management by Objectives”
• Method of using goals and objectives to align organizational action toward
achieving organizational goals

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accessible website, in whole or in part.
Strategic Problem Solving (1 of 7)
• Approach to integrating strategic function of leadership
– Involves goal and objective setting with subsequent organizational action
required to achieve objectives
• Strategic problem solving uses an 8-step approach

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accessible website, in whole or in part.
Strategic Problem Solving (2 of 7)

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accessible website, in whole or in part.
Strategic Problem Solving (3 of 7)

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accessible website, in whole or in part.
Strategic Problem Solving (4 of 7)

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accessible website, in whole or in part.
Strategic Problem Solving (5 of 7)

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accessible website, in whole or in part.
Strategic Problem Solving (6 of 7)

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accessible website, in whole or in part.
Strategic Problem Solving (7 of 7)

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Managing External Stakeholders
• Key role of C-Suite is to interact with key external stakeholders
• Rules for making communication with external stakeholders smooth:
– Performance cannot be reduced to profits
– External stakeholders do not have same incentives to contribute to
performance
– External stakeholders must be viewed as champions of organization
within community

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accessible website, in whole or in part.
Managing the Internal Workforce: Leadership
and Followership
• Leadership: influence a group of people towards achievement of a
goal
• Followership: share common purpose with leader, believe in
organization, and want success for leader and organization
• Effectiveness of leaders
– Measured by ability to leverage and manage capacities and motivation of
followerships

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accessible website, in whole or in part.
Influencing Organizational Culture
• Leaders must understand and influence organizational culture
– Organizational culture: deepest level of basic and shared assumptions
and beliefs shared by members of organization
– Artifacts: signs of physical, psychological, or social environment
– Values: what groups and individuals think ought to be, distinct from what
does exist

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Leadership in Health Care Organizations:
Evidence from Research
• Overview: five research questions:
– Does leadership matter in health care?
– Are there individual or setting characteristics that predict leadership
effectiveness?
– What competencies are required for leaders?
– What are the primary challenges of leaders?
– What role does leadership play in successful organizational change?

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Leadership and Performance
• Performance outcomes:
– Patient-related
• Leadership style highly correlated with key indicators of quality of care
– Staff-related
• Significant link between leadership style and staff-related outcomes
– Management-related
• People-oriented leadership associated with management-related outcomes

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accessible website, in whole or in part.
Predicting Leadership Effectiveness
• Three sets of factors predict leadership effectiveness:
– Leader traits and characteristics
– Leader behavior and practices
– Context or practice setting

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accessible website, in whole or in part.
Competencies for Leadership in Health Care
• Competencies: knowledge, skills and abilities
• Four competency areas for effective leadership:
– Knowledge of health care industry
– Technical skills
– Analytic/conceptual skills
– Interpersonal/communication skills

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Leadership’s Role in Organizational Change
• Transformational leadership is important, but insufficient
• Supportive leadership is critical to success
• Successful change requires administrative and clinical leadership
– Administrative leadership: support provided by those in senior positions
– Clinical leadership: support provided by those who hold clinical positions

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Sustaining Leadership
• Succession planning:
– Not limited to replacing individual
– Should include review and codification of organizational cultural
elements, work practices, and job design
• Self-care
– Leadership roles confer personal stress
– Key approaches to managing oneself involve recognition, analysis, and
processing

© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.

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