13-2 Defining Leadership

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13-2 Defining Leadership

• The ability to influence through communication
  the activities of others, individually or as a
  group, toward the accomplishment of worthwhile,
  meaningful, and challenging goals.
• It is a general concept that applies in many
  different social contexts.
• The traits and behaviors that are necessary for
  leaders of large organizations are different from
  those that are required for leaders of
  entrepreneurial ventures.

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Alternate Definitions Of Leadership

• The act of providing direction, energizing
  others, and obtaining their voluntary commitment
  to the leaders vision.
• The process of influencing a group toward the
  achievement of goals

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13-1 Introduction (cont.)

• Research has determined that many entrepreneurs
  are effective in creating and running a company
  on their own.
• However growth requires additional employees,
  when the entrepreneur hasnt the necessary skills
  to motivate and inspire followers.
• Efforts to analyze effective entrepreneurial
  leadership have focused on three general areas
• The personal traits of leaders
• The behavior of leaders
• The situations in which leadership develops
• There is agreement that traits and behaviors
  necessary for being an effective leader vary
  depending on situation.

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13-2a The Core of Leadership Influence

• Leaders use influence as their primary tool to
  move the venture toward its goals.
• Seven influence strategies proposed as vital for
  entrepreneurial leadership roles
• Reason
• Friendliness
• Coalition
• Bargaining
• Assertiveness
• Higher authority
• Sanctions
• Research indicates that employees demonstrate
  higher levels of motivation if theyre allowed to
  influence the way the organization works.

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Exhibit 13-2 The Management-Leadership Continuum
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13-3 Foundations Of Entrepreneurial Leadership

• The three main approaches at the center of the
  debate surrounding the foundations of leadership
  are
• Trait theory
• Behavioral theory
• Contingency theory
• Over the years, each of these approaches has been
  refined and various dimensions have been added.

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13-3a The Trait Theory of Leadership (cont.)

• Although the trait theory has identified a number
  of personality characteristics that have been
  linked to leadership, none have been determined
  to be essential in all places and under all
  circumstances.
• Studies have produced a lengthy list of possible
  traits essential to leadership, which are grouped
  into six categories
• Physical traits
• Background characteristics
• Intelligence
• Personality
• Task-related characteristics
• Social characteristics

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13-3b The Behavioral Theory of Leadership (cont.)

• Task-oriented leadership
• Techniques emphasize the need for leaders to plan
  each workers job tasks and job outcomes.
• Leaders try to ensure that each task is performed
  according to the business plan.
• Terms used to refer to task-oriented leadership
  behaviors include directive, production-oriented,
  autocratic, and initiating structure.
• Many modern leaders still believe that
  task-oriented behavior is the most effective for
  obtaining performance.

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13-3b The Behavioral Theory of Leadership (cont.)

• Person-oriented leadership
• This perspective holds that the way leaders get
  things done through others has implications for
  the long-term health and prosperity of a venture.
  
• Another way of understanding the distinction
  between task-oriented and person-oriented
  leadership is through two leadership theories.
• Theory X assumptions
• Theory Y assumptions

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Exhibit 13-3 Behaviors of Effective Leaders
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McGregors Assumptions (about employees)

• Theory X Employees
• Irresponsible
• Lack ambition
• Dislike work
• Avoid responsibility
• Are motivated by extrinsic rewards/punishments

• Theory Y Employees
• Goal seeking
• Creative
• Like work
• Accept responsibility
• Are motivated by intrinsic rewards

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13-3b The Behavioral Theory of Leadership (cont.)

• Combining Task-Oriented and Person-Oriented
  Leadership
• Contrasting perspectives make it appear that
  entrepreneurial leaders must choose one or the
  other, but not both.
• If so, then aspiring leaders need only develop a
  narrow range of skills that are either task- or
  person-oriented.
• If the most effective leaders are task-oriented,
  then leaders need skills only in the technical
  aspects of planning and organizing the work of
  others.
• If the most effective leaders are
  person-oriented, then human relations and
  interpersonal skills are required.

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13-3b The Behavioral Theory of Leadership (cont.)

• The idea that effective leadership requires a
  balance between task- and person-oriented
  behaviors has considerable appeal.
• Two approaches to this idea have become well
  known in the theory and practice of leadership
• Two-dimensional theory
• Managerial grid theory

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13-3c The Contingency Theory of Leadership

• Current popular idea is that effective leadership
  behavior is contingent on the situation in which
  leaders finds themselves.
• The theory is considerably more complex than
  either the trait or the behavioral approach.
• Effective leadership depends on the interaction
  of
• The leaders personal characteristics
• The leaders behavior
• Factors in the leadership situation
• A recurring theme is the concept of participation
  by subordinates in organizational decision
  making.
• At the extremes of this continuum are
  boss-centered leadership and subordinate-centered
  leadership.

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13-3c The Contingency Theory of Leadership
(cont.)

• Whether a leader should make the decision and
  announce it or share the problem with
  subordinates and seek group consensus depends on
  the interaction of factors related to the problem
  and to the subordinates.
• Factors related to the problem are
• Likelihood that one solution to the problem is
  more effective than another
• Extent to which the leader has sufficient
  information to make a high-quality decision
• Extent to which alternative solutions are known
  with some certainty

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13-3c The Contingency Theory of Leadership
(cont.)

• Factors related to subordinates are
• Likelihood that effective implementation of the
  solution depends on subordinates accepting it as
  appropriate
• Likelihood that if the leader makes the decision,
  the subordinates will accept it
• Extent to which subordinates recognize and accept
  the organizational objectives to be attained by
  the solution
• Likelihood that conflict among subordinates will
  result if the preferred solution is adopted
• Combining these seven factors creates different
  situations.