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After studying this chapter, you will be able to:

Define leadership and leadership effectiveness

Explain why people need leadership

Discuss the major obstacles to effective leadership

Compare and contrast leadership and management

List the roles and functions of leaders and managers

Summarize the debate over the role and impact of leadership in organizations.


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 of leadership effectiveness should consider all different roles and functions that a leader performs. In fact, organizations often fall back on simplistic measures, regardless of how satisfied the company’s employees are. Stockholders and financials consider a CEO to be effective if company stock prices keep increasing. Politicians are effective if the polls indicate their popularity is high and if they are reelected. A football coach is effective when the team is winning. Students’ scores on standardized tests determine a school principal’s effectiveness. What is effectiveness? The common thread in all these examples of effectiveness is the focus on outcome. To judge their effectiveness, we look at the results of what leaders accomplish. Process issues, such as employees’ satisfaction, are important but are rarely the primary indicator of effectiveness. What is effectiveness? The definition of leadership effectiveness, therefore, should contain 3 elements: Goals achievement: meeting financial goals, producing quality products or services, addressing the needs of customers… Smooth internal process: group cohesion, followers’ satisfaction, and efficient operations. External adaptability: group’s ability to change and evolve successfully When is a leader effective? Leaders are effective when their followers achieve their goals, can function well together, and can adapt to changing demands from external forces. Why do we need leaders? To keep group orderly and focused. The existence of groups require some form of organization and hierarchy. Leaders are needed to pull the individuals together, organize and coordinate their efforts. To accomplish tasks. Groups allow us to accomplish tasks that individuals alone could not undertake or complete. Leaders are needed to facilitate that accomplishment, to provide goals and directions, and coordinate activities. To make sense of the world. Groups and their leaders provide individuals with a perceptual check. Leaders help us make sense of the world, establish social reality, and assign meaning to events and situations that may be ambiguous. To be romantic ideals. Leadership is needed to fulfill our desire for mythical or romantic figures who represent us and symbolize our own and our culture’s ideals and accomplishments. Chapter 1 1.2- Obstacles to Effective Leadership Obstacles To Effective Leadership Organizations face considerable uncertainty that creates pressure for quick responses and solutions. Implementing new methods of leadership would make dealing with complexity and uncertainty easier in the long run. The lack of learning and experimentation causes the continuation of the crises, which makes unavailable the time needed to learn and practice innovative behaviors. Organizations are often rigid and unforgiving. In the push for short-term and immediate performance, organizations do not allow any room for mistake and experimentation. Such rigidity and reward systems discourage endeavors. Obstacles To Effective Leadership Organizations fall back on old ideas about effective leadership, and therefore, rely on simplistic solutions that do not fit new and complex problems. Organizations develop a particular culture that strongly influences how things are done and what is considered acceptable behavior. As leaders try to implement new ideas and experiment with new methods, they may face resistance generated by the established culture. The difficulty involved in understanding and applying the findings of academic research. Chapter 1 1.3- Leadership and Management Leadership and Management Leadership and Management Chapter 1 1.4- Roles and Functions of a Leader Managerial Roles Roles: are sets of expected behaviors ascribed to leaders/ managers by virtue of their leadership position. Basic managerial functions: planning, organizing, staffing, directing and controlling Internal functions: to provide their groups or organizations with a sense of vision and mission Department managers need to plan and organize their department’s activities and assign various people to perform tasks, monitor their employees’ performance and correct employee's actions when needed. Strategic and external functions. Managers negotiate with their boss and other department managers for resources and coordinate decisions and activities with them. Additionally, they must participate in strategic planning and the development of their own mission. Functions of the leader One of the major functions of leaders is the creation and development of a culture and climate for their groups or organizations (Nahavandi and Malekzadeh, 1993a; Schein, 2004). Functions of the leader Leaders are models for other organizational members. They establish and grant the status symbols that are the main artifacts of organizational culture. Followers take their cues from the leaders on what behaviors are and are not acceptable. Leaders are to manage the emotions of group members (Hemphrey, 2002; Kellett, Humphrey, and Sleeth, 2002) to maintaining followers' positive outlook in uncertain and ambiguous situations. Followers observe their leaders’ emotional reactions and take their cues from them to determine appropriate reactions (Pescosolido, 2002): teamwork, globalization, challenge to retain valued employees. Functions of the leader Leaders, particularly founders, leave an almost-indelible mark on the assumptions that are passed down from one generation to the next. In fact, organizations often come to mirror their founders’ personalities. Founders’ style (or founders’ family history): If the founder is workaholic and control oriented, the organization is likely to push for fast-paced decision making and be centralized. If the founder is participative and team oriented, the organization will be decentralized. Functions of the leader Leaders are to accept responsibility for one’s action. With the power and status afforded to leaders, comes the obligation of accepting responsibility for their own decisions and the organization's impact on others. Leaders are to make decisions regarding the reward system (Kerr and Slocum, 1987) and the control over decision standards. Rewards: financial and non financial Accomplishments: contribution to cultural diversity or the degree of social responsibility. Leaders are in charge of selecting other leaders and managers for the organizations. Those selected are likely to fit the existing leader’s ideal model and, therefore, fit the culture. Functions of the leader Leaders are to make decisions for the organization about structure and strategy, by determining the hierarchy, span of control, reporting relationship, and degree of formularization and specialization. A highly decentralized and organic structure  open and participative culture A highly centralized structure  mechanistic/ bureaucratic culture. The structure of an organization limits or encourage interaction, and by doing so, affects the assumptions shared by members of the organizations. The strategy selected by the leaders or top management team will be determined by the culture of the organization. A proactive growth strategy that require innovation and risk taking vs.. a strategy of retrenchment. Does Leadership Make a Difference Reconciling the Differences Leadership is one of many factors that influence the performance of a group or an organization. The leader's contribution, although not always tangible, is often significant in providing a vision and direction for followers and in integrating their activities. About the leader's power and discretion, the key is to identify situations where the leader's power and discretion over the group and organization are limited. The potential lack of impact of leaders in some situations further emphasizes the importance of followers in the success of leadership and the need to understand organizations as broad systems. The 2 views (against and for the impact of leadership) complement each other and should be fully integrated (Osborn, Hunt, and Jauch, 2002). Chapter 1 1.5- Changes in Organizations and Expectations of Leaders Control versus Result-Oriented Leadership Roles of leaders in organizations Factors fueling changes External and internal organizational factors are driving the changes in organizations and in the role of leaders and managers. Political changes worldwide  more openness and democracy. Global and local competition, and complex and fast changing technologies  reconsider how to provide goods and services to customers Global competition associated with consumer demands for improved quality in products and services  need for flexibility and creativity on the part of organizations Factors fueling changes Demographic changes  increased diversity (age, gender, ethnic background, women in the workforce…) in groups and organizations leaders must consider this diversity when making decisions younger generation enters the workplace with expectation of participation and autonomy, fast promotions, challenging learning opportunities, training, and work life balance Increase in service jobs (vs. traditional manufacturing jobs)  employees be in direct contact with customers, use judgment and make quick decisions (that previously reserved for management) Barriers to Change Autocratic leaders whose goals are clearly, not employee motivation and loyalty. Cost-cutting strategies  widespread layoffs. Focus on short-term and quick results cannot create the motivation necessary for the innovation and superior service. Top management still remains a one-person show. Old cultures in the reward system (for individual performance), more bureaucracy, lower autonomy, low responsibility. Employees are not willing or able to accept their new roles as partners and decision makers, even when such roles are offered to them. Even when organizations encourage change, leaders find giving up control difficulty (because of years of traditional training, of personality characteristics…) Questions ? 

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