BMGT364 Final Study Guide Management Vs Leadership Leadership The process of influencing others to mobilize and facilitate individual and collective efforts towards the accomplishment of goals or objectives Management The process of working with and through others to achieve organizational objectives Central to this process is the efficient and effective use of limited resources Management Essential to ensure efficient progress given a steady course Copes with complexity brings order and stability to unpredictable situations Plans and budgets Organizes and staffs sets up systems to ensure that plans are implemented precisely and efficiently Exercises control and solves problems Leadership Essential to envision and stimulate necessary changes and longer term survival Anticipates and produces change enables adaption to new circumstances Aligns people with vision gets them to believe in an alternative future Motivates and inspires people Sets direction and course Leader Traits most involve traits and skills Pre 1950 s Intelligence Ambition and passion Physical appearance Integrity Desire to lead Self confidence Recent Research Self confidence Strong internal locus of control High energy level and tolerance for stress Personal integrity Emotional and social intelligence Ability to learn Dominance Extraversion conscientiousness openness to experience Self monitoring 2 Key Types of Leader Behavior 1 Consideration Relations oriented behavior Acts in friendly supportive manner shows concern for subordinates Treats subordinates in supportive way builds and maintains their sense of Shows trust and confidence acts considerately self worth 2 Initiating Structure Task oriented behavior Defines and structures own goals and those of subordinates Coordinates activities and criticizes poor performance Conducts effective planning and scheduling Guides subordinates in setting high but realistic performance goals Effective leaders can both guide and facilitate task objectives while also building and maintaining relationships Blake and Mouton s Managerial Grid Impoverished Management Country Club Management Team Management Four Dimensions of Leadership Concern for Relationships Low Concern for Tasks Low Concern for Relationships High Concern for Tasks Low Concern for Tasks High Concern for Relationships High Concern for Tasks High Authority Compliance Management Concern for Relationships Low Task Oriented Organizing tasks and developing structures Relations Oriented Building relationships and developing networks Transformational Envisioning and inspiring people Transactional Negotiating and building reward systems Transactional Leaders Guide and motivate followers in the direction of established goals Use contingent rewards exchange rewards with meeting leader s expectations Corrective actions search for and react to deviations from standards Transformational Leaders Create the vision and environment that motivates employees o To achieve performance beyond existing goals and expectations o To consider new ways of performing their tasks and creating new ideas Characteristics of Transactional and Transformational Leaders Transactional Leader Contingent Reward Contracts exchange of rewards for effort promises rewards for good performance recognizes accomplishments Management by Exception Active Watches and searches for deviations from rules and standards takes correct action Management by Exception Passive Intervenes only if standards are not met Laissez Faire Abdicates responsibilities avoids making decisions Transformational Leader Idealized Influence Provides vision and sense of mission instills pride gains respect and trust Inspirational Motivation Communicates high expectations uses symbols to focus efforts expresses important purposes in simple ways Intellectual Stimulation Promotes intelligence rationality and careful problem solving Individualized Consideration Gives personal attention treats each employee individually coaches advises Characteristics of Transformational Leaders Charisma Inspiration Intellectual stimulation Individualized consideration Charisma Idealized Influence Take actions based on deeply held values ethics and or principles Model self leadership and project self confidence Create a sense of pride energy and mission Profound impact on followers values and beliefs Gandhi JFK Martin Luther King Effect on Followers Trust in leader s ideology Unquestioning acceptance Affection towards leader Obedience Identification with leader Increased confidence Show passion and optimism What makes a leader inspirational Articulate a strong vision which captures the imagination of others Empower others to act Motivate others to engage in extra effort Instill courage in others to step up to the risks of change Language of Inspirational Leadership Framing presenting the message defining the purpose in a meaningful way Rhetorical crafting using symbolic language to give emotional power to the message Intellectual Stimulation Provoke rethinking and reexamination of assumptions beliefs and values Encourage a new look at old work methods and work procedures Help others to bring new perspectives and innovative thinking to solving problems Produce innovative and synergistic solutions and breakthrough outcomes Individualized Consideration Give personal attention to others Understand others unique skills capabilities and developmental needs Act as a coach or mentor and maintain on going meaningful communications Demonstrate trust and respect for others Make each person feel valued and develop higher levels of his her potential Research on Transformational Leadership Transformational leadership isn t equally effective in all situations Greater impact on the bottom line in smaller organizations More effective when leaders can directly interact with the workforce and make decisions compared to reporting to an external board of directors Contingency Theory of Leadership Leadership depends on situation Fiedler s Situational Evaluators Three situational considerations Leader member relations Confidence and trust members have in leader Task structure Is the task structured or unstructured Position power How much power does the leader have over hiring firing Leader Member Exchange LMX Because of limited resources leaders form close relationship with small number of followers the in group Everyone else falls into the out group Quality of relations depends whether the follower is in group or out group Power
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