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LeadershipLeadership

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Learning ObjectivesLearning Objectives

After studying the chapter, you should be able to: Explain what leadership is, when leaders are

effective and ineffective, and the sources of power that enable managers to be effective leaders.

Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership.

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Learning ObjectivesLearning Objectives

Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.

Describe what transformational leadership is, and explain how managers can engage in it.

Characterize the relationship between gender leadership.

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The Nature of LeadershipThe Nature of Leadership

Leadership The process by which a person exerts influence

over others and inspires, motivates and directs their activities to achieve group or organizational goals. Effective leadership increases the firm’s ability to meet

new challenges.

Leader An individual who is able to exert influence over

other people to help achieve group or organizational goals

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The Nature of LeadershipThe Nature of Leadership

Personal Leadership Style The specific ways in which a manager chooses to

influence others shapes the way that manager approaches the other tasks of management. Leaders may delegate and support subordinates, while

others are very authoritarian. The challenge is for managers

at all levels to develop an effective personal management style.

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Leadership Across CulturesLeadership Across Cultures

Leadership styles may vary among different countries or cultures. European managers tend to be more

people-oriented than American or Japanese managers.

Japanese managers are group-oriented, while U.S managers focuses more on profitability.

Time horizons also are affected by cultures.

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Sources of Managerial PowerSources of Managerial Power

Figure 14.1

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Power: The Key to LeadershipPower: The Key to Leadership

Legitimate Power The authority that a manager has by virtue of his or

her position in the firm. Example: the power to hire or fire employees.

Reward Power The ability of a manager to give or withhold

tangible and intangible rewards. Example: awarding pay raises or providing verbal praise

for good performance. Effective managers use reward power to signal to

employees that they are doing a good job.

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Power: The Key to LeadershipPower: The Key to Leadership

Coercive Power The ability of a manager to punish others.

Examples: verbal reprimand, pay cuts, and dismissal Limited in effectiveness and application; can have serious

negative side effects.

Expert Power Power that is based on special knowledge, skills,

and expertise that the leader possesses. First-line and middle managers have the most expert

power; most often consists of technical ability.

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Power: The Key to LeadershipPower: The Key to Leadership

Referent Power Power that comes from subordinates’ and

coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration.

Usually held by and available for use by likable managers who are concerned about their workers.

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Empowerment: An Ingredient in Modern Management

Empowerment: An Ingredient in Modern Management

Empowerment The process of giving workers at all levels

more authority to make decisions and the

responsibility for their outcomes.

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Empowerment: An Ingredient in Modern Management

Empowerment: An Ingredient in Modern Management

Empowerment helps managers:Get workers involved in the decisions.Increase worker commitment and motivation.Have time to focus on other issues.

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Leadership ModelsLeadership Models

Trait Model Attempted to identify personal

characteristics that cause for effective leadership.Research shows that certain personal

characteristics do appear to be connected to effective leadership.

Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.

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Leadership ModelsLeadership Models

Behavioral Model Identifies the two basic types of behavior

that many leaders engaged in to influence their subordinates

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Leadership ModelsLeadership Models

Behavioral ModelConsideration: employee-centered leadership

behavior indicating that a manager trusts, respects, and cares about subordinates

Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.

Both behaviors are independent; managers can be high or low on both behaviors.

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Contingency Models of Leadership Contingency Models of Leadership

Fiedler’s Model Effective leadership is contingent on both the

characteristics of the leader and of the situation. Leader style is the enduring, characteristic

approach to leadership that a manager uses and does not readily change. Relationship-oriented style: leaders concerned with

developing good relations with their subordinates and to be liked by them.

Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done.

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Fiedler’s Model Fiedler’s Model

Situation Characteristics How favorable a situation is for leading to occur. Leader-member relations—determines how much

workers like and trust their leader. Task structure—the extent to which workers tasks

are clear-cut; clear issues make a situation favorable for leadership.

Position Power—the amount of legitimate, reward, and coercive power leaders have due to their position. When positional power is strong, leadership opportunity becomes more favorable.

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Fiedler’s Contingency Theory of Leadership

Fiedler’s Contingency Theory of Leadership

Figure 14.2

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Fiedler’s Model in ApplicationFiedler’s Model in Application

Combines considerations of leader-member relations, task structure, and position power to identify leadership situations. Identifies situations where given types of

managers might perform best. Leader style is a characteristic managers cannot

change; managers will be most effective when: they are placed in situations that suit their leader style. the situation can be changed to fit the manager’s leader

style.

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House’s Path-Goal TheoryHouse’s Path-Goal Theory

A contingency model of leadership proposing the effective leaders can motivate subordinates by:

1. Clearly identifying the outcomes workers are trying to obtain from their jobs.

2. Rewarding workers for high-performance and goal attainment with the outcomes they desire

3. Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability.

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Motivating with Path-GoalMotivating with Path-Goal

Path-Goal identifies four leadership behaviors: Directive behaviors: set goals, assign tasks, show

how to do things. Supportive behavior: look out for the worker’s best

interest. Participative behavior: give subordinates a say in

matters that affect them. Achievement-oriented behavior: Setting very

challenging goals, believing in worker’s abilities.

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Motivating with Path-GoalMotivating with Path-Goal

Which behavior to be used depends on the nature of the subordinates and the tasks.

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The Leader Substitutes ModelThe Leader Substitutes Model

Leadership Substitute Acts in the place of a leader and makes leadership

unnecessary. Possible substitutes can be found in: Characteristics of the subordinates: their skills,

experience, motivation. Characteristics of context: the extent to which work is

interesting and fun. Worker empowerment or self-managed work

teams reduce leadership needs. Managers should be aware that they do not always

need to directly exert influence over workers.

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Transformational LeadershipTransformational Leadership

Leadership that: Makes subordinates aware of the importance of

their jobs and performance to the organization by providing feedback to the worker.

Makes subordinates aware of their own needs for personal growth and development.

Motivates workers to work for the good of the organization, not just themselves.

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Being a Charismatic LeaderBeing a Charismatic Leader

Charismatic Leader An enthusiastic, self-confident transformational

leader able to clearly communicate his or her vision of how good things could be by: Being excited and clearly communicating excitement to

subordinates. Openly sharing information with employees so that

everyone is aware of problems and the need for change. Empowering workers to help with solutions. Engaging in the development of employees by working

hard to help them build skills.

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Transactional LeadershipTransactional Leadership

Transactional Leaders Use their reward and coercive powers to

encourage high performance—they exchange rewards for performance and punish failure.

Push subordinates to change but do not seem to change themselves.

Do not have the “vision” of the transformational leader.

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Intellectual StimulationIntellectual Stimulation

Behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader’s vision.

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Developmental ConsiderationDevelopmental Consideration

Behavior a leader engages in to support and encourage followers and help them develop and grow on the job.

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Gender and LeadershipGender and Leadership

The number of women managers is rising but is still relatively low in the top levels of management. Stereotypes suggest women are supportive and

concerned with interpersonal relations. Similarly, men are seen as task-focused. Research indicates that actually there is no gender-based

difference in leadership effectiveness. Women are seen to be more participative than men

because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills.

14-30© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Emotional Intelligence and Leadership

Emotional Intelligence and Leadership

The Moods of Leaders: Affect their behavior and effectiveness as leaders. Affect the performance of their subordinates.

Emotional Intelligence Helps leaders develop a vision for their firm. Helps motivate subordinates to commit to the

vision. Energizes subordinates to work to achieve the

vision.

14-31© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Movie Example: The Patriot Movie Example: The Patriot

How many ways does Benjamin Martin (Gibson) show leadership? What type of leader is he?