Chapter Fourteen Leadership Mc GrawHillIrwin Copyright 2009 by

The Nature of Leadership Ø Leadership ≈ The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. 14 -2

The Nature of Leadership Ø Personal Leadership Style ≈ The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other principal tasks of management. ≈ The challenge is for managers at all levels to develop an effective personal management style. 14 -3

Leadership Across Cultures Ø European managers tend to be more people-oriented than American or Japanese managers. Ø Japanese managers are group-oriented, while U. S managers focuses more on profitability. Ø Time horizons also are affected by cultures. 14 -4

Power: The Key to Leadership Ø Legitimate Power ≈ The authority that a manager has by virtue of his or her position in the firm. Ø Reward Power ≈ The ability of a manager to give or withhold tangible and intangible rewards. 14 -5

Power: The Key to Leadership Ø Coercive Power ≈ The ability of a manager to punish others ≈ Limited in effectiveness and application; can have serious negative side effects ≈ Examples: verbal reprimand, pay cuts, and dismissal 14 -6

Power: The Key to Leadership Ø Expert Power ≈ Power that is based on special knowledge, skills, and expertise that the leader possesses. ≈ Tends to be used in a guiding or coaching manner 14 -7

Power: The Key to Leadership Ø Referent Power ≈ Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty ≈ Possessed by managers who are likable and whom subordinates wish to use as a role model 14 -8

Empowerment: An Ingredient in Modern Management Ø Empowerment ≈ The process of giving employees at all levels in the organization the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs 14 -9

Leadership Models Ø Trait Model ≈ Focused on identifying personal characteristics that cause effective leadership. ≈ Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits. 14 -10

Leadership Models Ø Behavioral Model ≈ Identifies the two basic types of behavior that many leaders engage in to influence their subordinates ≈ Consideration, initiating structure ≈ Impact on leader effectiveness not clear-cut 14 -11

Discussion Question Ø Consider your favorite teacher. What peopleoriented and task-oriented leadership behaviors did s/he use effectively? In general, do you think students prefer an instructor who is more people-oriented or task -oriented? ≈ Identify ‘critical incidents’ § Research has found that college students apparently value task-oriented instructors because they want clear course objectives and well-prepared lectures that address learning objectives 14 -12

Contingency Models of Leadership Ø Contingency Models ≈ Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what she does, and the situation in which leadership takes place 14 -13

Contingency Models of Leadership Ø Fiedler’s Model ≈ Effective leadership is contingent on both the characteristics of the leader and of the situation. ≈ Leader style is a manager’s characteristic approach to leadership (enduring, managers not able to change) 14 -14

Contingency Models of Leadership Ø 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. 14 -15

Fiedler’s Model Ø Situation Characteristics ≈ Leader-member relations – extent to which followers like, trust, and are loyal to their leader ≈ Task structure – extent to which the work to be performed is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it 14 -16

Fiedler’s Model Ø Situation Characteristics ≈ 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. 14 -17

Fiedler’s Contingency Theory of Leadership Figure 14. 2 14 -18

House’s Path-Goal Theory A contingency model of leadership proposing that effective leaders can motivate subordinates to achieve goals by: 1. Clearly identifying the outcomes that subordinates are trying to obtain from their jobs. 2. Rewarding subordinates with these outcomes for high-performance and attainment of work goals 3. Clarifying the paths leading to the attainment of work goals 14 -19

Path-Goal Leadership Behaviors Ø Directive behaviors ≈ set goals, assign tasks, show to do things. Ø Supportive behavior ≈ look out for the worker’s best interest. 14 -20

Path-Goal Leadership Behaviors Ø Participative behavior ≈ give subordinates a say in matters that affect them. Ø Achievement-oriented behavior ≈ Setting very challenging goals, believing in worker’s abilities. Ø Most appropriate behavior depends on nature of subordinates and kind of work done 14 -21

The Leader Substitutes Model Ø Leadership Substitute ≈ Acts in the place of a leader and makes leadership unnecessary. ≈ Members of an organization sometimes can perform highly without a manager exerting influence over them 14 -22

The Leader Substitutes Model Ø 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. ≈ Characteristics of work design: e. g. , the use of self-managed teams. 14 -23

Transformational Leadership that: 1. Makes subordinates aware of the importance of their jobs for the organization and how necessary it is for them to perform those jobs as best they can so that the organization can attain its goals 14 -24

Transformational Leadership 2. Makes subordinates aware of their own needs for personal growth, development, and accomplishment 3. Motivates workers to work for the good of the organization, not just for their own personal gain or benefit 14 -25

Being a Charismatic Leader Ø Charismatic Leader ≈ An enthusiastic, self-confident transformational leader able to clearly communicate vision of how good things could be ≈ Openly sharing information with employees so that everyone is aware of problems and the need for change. 14 -26

Intellectual Stimulation Ø Intellectual Stimulation ≈ Manager leads subordinates to view problems as challenges that they can and will meet and conquer ≈ Manager engages and empowers subordinates to take personal responsibility for helping to solve problems 14 -27

Developmental Consideration Ø Developmental Consideration ≈ Manager supports and encourages subordinates, giving them opportunities to enhance their skills and capabilities and to grow and excel on the job 14 -28

Transactional Leadership Ø 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. 14 -29

Gender and Leadership Ø The number of women managers is rising but is still relatively low in the top levels of management. Ø Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused. Ø Men and women do not differ significantly in propensity to engage in different leader behaviors, effectiveness. 14 -30

Emotional Intelligence and Leadership Ø 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

Evaluating Leadership Ø Importance of leadership may be exaggerated in explaining organizational performance ≈ Attributing leadership § Organizational success (or failure) attributed to leader, whereas environmental factors may have been significant ≈ Stereotyping leadership § Leader behaviors may be consistent w/ stereotypes • Do they look and act like leaders? (Reinforces trait and behavioral approaches) ≈ Need for situational control § People want to believe leaders make a difference Ø Implication: Potential leaders must understand what followers expect and act accordingly 14 -32