Chapter 1:
Leaders and Leadership
The 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.
• Leader – An individual who is able to exert influence over other people to help achieve group or organizational goals 2
The 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. – The challenge is for managers at all levels to develop an effective personal management style. 3
Leadership Across Cultures • Leadership styles may vary among different countries or cultures. – European managers tend to be more peopleoriented 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. 4
Power: The Key to Leadership • Legitimate Power – The authority that a manager has by virtue of his or her position in the firm.
• Reward Power – The ability of a manager to give or withhold tangible and intangible rewards. – Effective managers use reward power to signal to employees that they are doing a good job. 5
Power: The Key to Leadership • Coercive Power – The ability of a manager to punish others.
• Expert Power – Power that is based on special knowledge, skills, and expertise that the leader possesses.
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Power: 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.
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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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Leadership 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 Models • Behavioral Model – Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates
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Leadership Models • Behavioral Model – Consideration: • 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. 11
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.
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Contingency Models of Leadership • Fiedler’s Model – 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 • Situation Characteristics – How favorable a situation is for leading to occur. – Leader-member relations—determines how much workers like and trust their leader.
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Fiedler’s Model – 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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House’s Path-Goal Theory • A contingency model of leadership proposing the effective leaders can motivate subordinates by: – Clearly identifying the outcomes workers are trying to obtain from their jobs. – Rewarding workers for high-performance and goal attainment with the outcomes they desire – Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability. 16
Motivating 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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The Leader Substitutes Model • Leadership Substitute – A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary
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Transformational 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. 19
Being 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
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Intellectual 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 Consideration • Behavior a leader engages in to support and encourage followers and help them develop and grow on the job.
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Transactional Leadership • Transactional Leaders – Leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance
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Gender 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.
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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.
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