MGT 521: Week 4 (Chapter 14 & 17)

-Leadership is the process of motivating employees and teams to accomplish stated objectives
-While leading is one of the functions of management, not all managers are leaders and vice versa

-Attempted to identify certain that all leaders have
-Were largely discarded in favor of leadership behavior theories

1.University of Iowa (3 leadership styles and effectiveness)
2. Ohio State (2 behavioral dimensions: initiating structure and consideration)
3. University of Michigan Studies (2 behavioral dimensions: employee vs production oriented)
4. Managerial Grid

3 leadership styles and their effectiveness
-autocratic style: dictates work methods, centralizes decision making, limit participation among employees/subordinates
-democratic style: involves others in decision making, does not hesitate to delegate authority, allows for and encourages feedback
-laissez-faire style: maintains hands off leadership style, allows team to make its own decisions

*Inconclusive regarding leadership style and performance; employee satisfaction indicated that employees prefer democratic leaders

2 Behavioral Dimensions
-Initiating structure: how a leader defines their role and the roles of group members to reach goals
-Consideration: how a leader trusts and respects group members and vice versa

*Leadership high in both initiating structure and consideration sometimes high performance and satisfaction, but not always

2 Behavior Dimensions
-Employee oriented: emphasize interpersonal relationships
-Production oriented: emphasize task aspect of job

*Studies concluded that leaders with high employee orientation generally achieved high group performance and employee satisfaction

*Managerial grid constructed based on University of Iowa, Ohio State, and University of Michigan studies

2 Behavior Dimensions
-Concern for people
-Concern for production

*5 styles of leadership were named, correspondingly high and low on these 2 dimensions. Grid concluded most effective managers were high on both dimensions

1. Fiedler Contingency Model (effective group performance based on leader's style and effectiveness)
2. Situational Leadership Theory (Hersey and Blanchard ranking and leadership styles)
3. Path-Goal Model (leadership behaviors change based on situational contingency variables)

2 Factors of Effective Group Performance
-Leader's Style
-Amount of control and influence in the situation

*Model is based on the idea that different types of situations call for different leadership styles

2 Basic Leadership Styles
-Task Oriented
-Relationship Oriented

*Model assumed that a leader's style could not be changed

3 Key Situational Factors in Leader Effectiveness
-Leader-member relations
-Task Structure
-Position Power

*Focuses on the followers' readiness, which refers to the extent to which employees can and wish to complete a specific objective

2 Leadership Dimensions
(Hersey and Blanchard Ranking and 4 Leadership Styles)
-Telling: high task-low relationship
-Selling: high task-high relationship
-Participating: low task-high relationship
-Delegating: low task-low relationship

*As followers reach higher levels of readiness, the leader should decrease management of their activities and also decrease relationship behaviors

Path-Goal Theory
-Leader's job to guide followers as they strive to accomplish their goals
-Leader's job to ensure individual follower goals are compatible with the organization

4 Leadership Behaviors
-Directive
-Supportive
-Participative
-Achievement Oriented

*Assumes that leaders are flexible and can change their leadership style and behaviors to suit a specific situation

2 Situational Contingency Variables
-Environment: outside follower's control
-Follower's personal characteristics

1. Leader-Member Exchange Theory
2. Transformational-Transactional Leadership
3. Charismatic-Visionary Leadership
4. Team Leadership

-Leader-member exchange theory states that leaders establish in-groups and out-groups ammong employees early on in a leader's interaction with a follower
-Employees in the in-group will generally be more favored and measurements like turnover and job satisfaction will reflect this
-Leaders will reward employees in the in-group and punish those in the out-group

-Transactional leaders lead primarily by exchanging rewards for performance in an attempt to motivate employees
-Transformational leaders inspire followers to aachieve outcomes above and beyond the norm
-Research indicates that transformational leaders were seen as more effective and more promotable, and therefore tend to increase satisfaction and reduce turnover among their followers

*Charismatic leader is a self-motivated individual who has a large personality and can influence an individual's behaviors

5 Charismatic Leaders Personal Characteristic
-Visionary
-Ability to articulate that vision
-Willingness to take risks to achieve that vision
-Sensitivity to both environmental constraints and follower needs
-Behaviors that are out of the ordinary