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9chapter
Business Essentials, 7th Edition
Ebert/Griffin
2009 Pearson Education, Inc.
Leadership and decision-making
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College
Instructor LecturePowerPoints
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The Nature of Leadership
What Is Leadership?
The processes and behaviors used by someone,
such as a manager, to motivate, inspire, and
influence the behaviors of others.
Are Leadership and Management the Same?
No. A person can be a manager, a leader, both, or
neither.
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Source: The Free Press, an imprint of Simon & Schuster Adult Publishing Group, from A Force for Change:
How Leadership Differs from Management, by John P. Kotter, 1990. Copyright 1990 by John P. Kotter, Inc.
TABLE 9.1 Kotters Distinctions Between Management
and Leadership
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Early Approaches to Leadership
Trait Approaches to Leadership
Focused on identifying essential leadership traits
Intelligence, dominance, self-confidence, energy, activity (versus
passivity), and knowledge about the job
Physical traits (height, body shape, handwriting)
Yielded inconsistent results
Recent research has focused on a limited set
of traits
Emotional intelligence, mental intelligence, drive, motivation,
honesty and integrity, self-confidence, knowledge of the business,and charisma
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Early Approaches to Leadership (contd)
Behavioral Approaches to Leadership Focused on the behaviors of effective leaders
versus ineffective leaders
Assumed that the behaviors of effective leaderswould be the same across all situations
Task-focused leader behaviors related to increasing theperformance of employees
Employee-focused leader behaviors related to job
satisfaction, motivation, and well-being of employees
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The Situational Approach to Leadership
Situational Approach
Assumes that appropriate leader behavior varies
from one situation to another
Continuum of leadership behavior
Considers influences of the characteristics of the leader,
subordinates, and the situation
Continuum ranges from having the leader make
decisions alone (i.e., task-focused) to having employees
make decisions with only minimal guidance from the
leader
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Source: Harvard Business Review. An exhibit from How to Choose a Leadership Pattern by Robert Tannenbaum and
Warren Schmidt (May-June 1973). Copyright 1973 by the President and Fellows of Harvard College; all rights reserved.
FIGURE 9.1 The Leadership Continuum
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Leadership Through the Eyes of Followers
Transformational Leadership
The set of abilities that allows a leader to
recognize the need for change, to create a vision
to guide that change, and to execute the change
effectively
Transactional Leadership
Basic management involving routine, regimentedactivities (leading during a period of stability)
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Leadership Through the Eyes of Followers (contd)
Charisma
Charisma: A form of interpersonal attraction that inspires
support and acceptance
Charismatic Leadership Influence based on the leaders personal charisma
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Special Issues in Leadership
Leadership Substitutes Individual, task, and organizational characteristics
that tend to outweigh the need for a leader toinitiate or direct employee performance
Leadership Neutralizers
Various factors that neutralize leadershipbehaviors or render them ineffective
The norms of strongly cohesive groups Elements of the job
Organizational factors
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TABLE 9.2 Leadership Substitutes and Neutralizers
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The Changing Nature of Leadership
Leader as Coach From directive overseer to mentor
Gender
Understanding the differences and dynamics inthe approaches of women and men to leadership
Cross-Cultural Leadership
The effects of an individuals native culture on hisor her approach to leadership when functioning in
another culture
Collectivism versus individualism
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Emerging Issues in Leadership
Strategic Leadership
Leaders ability to understand the complexities of the
organization and its environment and lead change so as
to enhance organizational competitiveness
Ethical Leadership
Leaders ability to maintain high ethical standards for
personal conduct, unfailingly exhibit ethical behavior,
and hold others to the same standards
Virtual Leadership
Leading through effective communication and
maintaining collaborative relationships at a distance
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Leadership, Management,
and Decision-Making
Rational decision-making
Recognizing and defining the decision situation
Identifying alternatives Evaluating alternatives
Selecting the best alternative
Implementing the chosen alternative
Following up and evaluating the results
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FIGURE 9.2 Steps in the Rational Decision-Making
Process
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Behavioral Aspects of Decision-Making
Political Forces in Decision-Making
Coalition: An informal alliance of individuals or groupsformed to achieve a common goal
Intuition
An innate belief about something, often without consciousconsideration
Escalation of Commitment
Staying with a chosen course of action, even when it
appears to have been wrong
Risk Propensity
The extent to which a decision-maker is willing to gamblewhen making a decision
2009 Pearson Education, Inc.
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