Determining How to Make Decisions as a Leader

According to Tannenbaum and Schmidt, the three primary factors, or forces, that influence a
manager’s determination of which leadership behavior to use in making decisions are as follows:

Forces in the Manager—Managers should be aware of four forces within themselves that influence
their determination of how to make decisions as a leader. The first force is the manager’s values,
such as the relative importance to the manager of organizational efficiency, personal growth, the
growth of subordinates, and company profits.

The second influencing force is level of confidence in subordinates. The second influencing force is
level of confidence in subordinates. In general, the more confidence a manager has in his or her
subordinates, the more likely it is that the manager’s decision-making style will be democratic, or
subordinate-centered. The reverse is also true: The less confidence a manager has in subordinates,
the more likely it is that the manager’s decision-making style will be autocratic, or boss-centered.

The third influencing force within the manager is personal leadership strengths. The third
influencing force within the manager is personal leadership strengths. Some managers are more
effective at issuing orders than leading group discussions, and vice versa. Managers must be able to
recognize their own leadership strengths and capitalize on them.

The fourth influencing force within the manager is tolerance for ambiguity. The fourth influencing
force within the manager is tolerance for ambiguity. The move from a boss-centered style to a
subordinate-centered style means some loss of certainty about how problems will be solved. A
manager who is disturbed by this loss of certainty will find it extremely difficult to be successful as a
subordinate-centered leader.

Forces in Subordinates

managers can increase their leadership success by allowing subordinates more freedom in making
decisions when: r The subordinates have a relatively high need for independence (people differ
greatly in the amount of direction they desire). r They have a readiness to assume responsibility for
decision making (some see additional responsibility as a tribute to their abilities; others see it as
someone above them “passing the buck”). r They have a relatively high tolerance for ambiguity
(some employees prefer to be given clear-cut directives; others crave a greater degree of freedom). r
They are interested in the problem and believe solving it is important. r They understand and
identify with the organization’s goals. r They have the necessary knowledge and experience to deal
with the problem. r They have learned to expect to share in decision making (people who have come
to expect strong leadership and then are suddenly told to participate more fully in decision making
are often upset by this new experience; conversely, people who have enjoyed a considerable
amount of freedom usually resent the boss who assumes full decisionmaking powers)
Forces in the Situation

The first such situational force is the type of organization in which the leader works. Organizational
factors, including the size of working groups and their geographic distribution, are especially
important influences on leadership style. Extremely large work groups or wide geographic
separations of work groups, for example, could make a subordinate-centered leadership style
impractical. The second situational force is the effectiveness of a group. To gauge this force,
managers should evaluate such issues as the experience of group members in working together and
the degree of confidence they have in their abilities to solve problems as a group. As a general rule,
managers should assign decision-making responsibilities only to effective work groups. The third
situational force is the problem to be solved. Before deciding to act as a subordinate-centered
leader, a manager should be sure the group has the expertise necessary to make a decision about
the problem in question. If it does not, the manager should move toward more boss-centered
leadership. The fourth situational force is the time available to make a decision. As a general
guideline, the less time available, the more impractical it is to assign decision making to a group
because a group typically takes more time than an individual to reach a decision.

Controlling the resources and optimizing the process (manager) This can be done with people or
without people.

Leader is someone who empower the people Not working in isolation.

A manager makes sure that a job gets done, and a leader cares about and focuses on the people who
do the job.

People vs. Systems:

 Leader: Puts emphasis on people, their growth, development, and well-being.
Leaders are often empathetic and understand the strengths and weaknesses
of their team members.
 Manager: Focuses on systems, processes, and procedures to ensure efficiency
and effectiveness. They allocate resources, assign tasks, and monitor progress.
Long-term vs. Short-term:
 Leader: Thinks long-term and is focused on the future direction of the
organization. They prioritize long-term goals and sustainable growth.
 Manager: Deals with short-term goals and tasks, ensuring that day-to-day
operations run smoothly and immediate objectives are achieved.
Relationships vs. Authority:
 Leader: Builds strong relationships based on trust, respect, and mutual
understanding. Leaders influence through relationships rather than authority.
 Manager: Exercises authority and power to ensure tasks are completed and
goals are achieved. Their influence often stems from their position within the
organizational hierarchy.
Risk-taking and Decision-making:
 Leader: Willing to take calculated risks and make bold decisions, often guided
by a broader vision and intuition.
 Manager: Tends to make decisions based on established protocols,
minimizing risks and ensuring stability in operations.
Communication and Influence:
 Leader: Communicates the vision clearly, engages in active listening, and
influences others through persuasion and inspiration.
 Manager: Communicates directives and instructions clearly, ensuring tasks are
understood and executed effectively.
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A servant leader shares power, puts the needs of the employees first and helps people develop and
perform as highly as possible. servant leaders place high value on service to others over their own
self-interests53 and see their main responsibility as caring for the human resources of the
organizations.

characteristics, servant leaders are

good listeners

persuasive

aware of their surroundings.

Empathetic

Stewards

Authentic leadership:

Level 5 leadership is an approach to leadership that blends personal humility with an intense will to
build long-range organizational success.

Transformational leadership is defined as a leadership approach that causes change in individuals

and social systems. This style of leadership creates a sense of duty within an organization,
encourages new ways of handling problems, and promotes learning for all organization members.

LEADERS CHANGING ORGANIZATIONS

Perhaps transformational leadership is receiving more attention nowadays because of the dramatic
changes many organizations are going through and the critical importance of transformational
leadership in successfully “transforming” or changing organizations

The Tasks of Transformational Leaders:

Transformational leaders perform several important tasks. First, they raise followers’ awareness of
organizational issues and their consequences. Organization members must understand an
organization’s high-priority issues and what will happen if those issues are not successfully resolved.
Second, transformational leaders create a vision of what the organization should be, build
commitment to that vision throughout the organization, and facilitate organizational changes that
support the vision. In sum, transformational leadership is consistent with the strategy developed
through an organization’s strategic management process.