Leaders and Leadership Chapter Ten Copyright 2015 Mc

Leaders and Leadership Chapter Ten Copyright © 2015 Mc. Graw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of Mc. Graw-Hill Education.

Learning Objectives LO 10 -1 Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. LO 10 -2 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 10 -2

Learning Objectives (cont. ) LO 10 -3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations LO 10 -4 Describe what transformational leadership is, and explain how managers can engage in it LO 10 -5 Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness. 10 -3

The Nature of Leadership ªLeadership 9 The process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals 10 -4

The Nature of Leadership ªLeader 9 An individual who is able to exert influence over other people to help achieve group or organizational goals 10 -5

The Nature of Leadership ªPersonal Leadership Style 9 The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management. 9 The challenge is for managers at all levels to develop an effective personal management style 10 -6

The Nature of Leadership ªServant leaders 9 leader who has a strong desire to serve and work for the benefit of others 9 shares power with followers 9 strives to ensure that followers’ most important needs are met 10 -7

Discussion Question What culture has the most effective leadership style? A. Japanese B. European C. United States D. Middle Eastern 10 -8

Leadership Across Cultures Leadership styles may vary among different countries or cultures 9 European managers tend to be more peopleoriented than American or Japanese managers 9 Japanese managers are group-oriented, while U. S managers focuses more on profitability 9 Time horizons also are affected by cultures 10 -9

Sources of Managerial Power Figure 10. 1 10 -10

Question? What type of power is the ability of a manager to give or withhold tangible and intangible rewards? A. Reward B. Coercive C. Expert D. Legitimate 10 -11

Power: The Key to Leadership ªLegitimate Power 9 The authority that a manager has by virtue of his or her position in an organizational hierarchy ªReward Power 9 The ability of a manager to give or withhold tangible and intangible rewards 10 -12

Power: The Key to Leadership ªCoercive Power 9 The ability of a manager to punish others ªExpert Power 9 Power that is based on special knowledge, skills, and expertise that a leader possesses 10 -13

Power: The Key to Leadership ªReferent Power 9 Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty. 10 -14

Empowerment: An Ingredient in Modern Management ªEmpowerment 9 the process of giving employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs 10 -15

Empowerment: An Ingredient in Modern Management Empowerment: ª Increases a manager’s ability to get things done ª Increases workers’ involvement, motivation, and commitment ª Gives managers more time to concentrate on their pressing concerns 10 -16

Leadership Models ªTrait Model 9 Focused on identifying personal characteristics that cause effective leadership. 9 Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits. 10 -17

Question? Which leadership model identifies the two basic types of behavior that many leaders engaged in to influence their subordinates? A. Fiedler B. Path-Goal C. Behavioral D. Trait 10 -18

The Behavior Model ªBehavioral Model 9 Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates 10 -19

The Behavior Model ªConsideration 9 behavior indicating that a manager trusts, respects, and cares about subordinates ªInitiating structure 9 behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective 10 -20

Contingency Models of Leadership ªContingency Models 9 Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he does, and the situation in which leadership takes place 10 -21

Contingency Models of Leadership ªFiedler’s Model 9 Personal characteristics can influence leader effectiveness 9 Leader style is the manager’s characteristic approach to leadership 10 -22

Contingency Models of Leadership ªRelationship- oriented style 9 leaders concerned with developing good relations with their subordinates and to be liked by them. ªTask-oriented style 9 leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment 10 -23

Fiedler’s Model ªLeader–member relations 9 The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading. ª Task structure 9 the extent to which workers tasks are clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it 10 -24

Fiedler’s Model ªPosition Power 9 the amount of legitimate, reward, and coercive power leaders have by virtue of their position 9 Leadership situations are more favorable for leading when position power is strong. 10 -25

Fiedler’s Contingency Theory of Leadership Figure 10. 2 10 -26

House’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. 10 -27

House’s Path-Goal Theory ª Directive behaviors 9 setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance ª Supportive behavior 9 expressing concern for subordinates and looking out for their best interests 10 -28

House’s Path-Goal Theory ªParticipative behavior 9 giving subordinates a say in matters that affect them ªAchievement- oriented behavior 9 Setting very challenging goals, believing in worker’s abilities 10 -29

The Leader Substitutes Model ªLeadership Substitute 9 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 10 -30

The Leader Substitutes Model ªPossible substitutes can be found in: 9 Characteristics of the subordinates: their skills, experience, motivation. 9 Characteristics of context: the extent to which work is interesting and fun. 10 -31

Transformational Leadership ªTransformational leadership 9 Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback to the worker 9 Makes subordinates aware of their own needs for personal growth and development 9 Motivates workers to work for the good of the organization, not just themselves 10 -32

Being a Charismatic Leader ªCharismatic Leader 9 An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be 10 -33

Stimulating Subordinates Intellectually ªIntellectual Stimulation 9 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 10 -34

Engaging in Developmental Consideration ªDevelopmental Consideration 9 Behavior a leader engages in to support and encourage followers and help them develop and grow on the job 10 -35

Transactional Leadership ªTransactional Leaders 9 Leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance 10 -36

Gender and Leadership ª The number of women managers is rising but is still relatively low in the top levels of management. ª Stereotypes suggest women are supportive and concerned with interpersonal relations. ª Men are stereotypically viewed as being directive and focused on task accomplishment. 10 -37

Emotional Intelligence and Leadership ªThe Moods of Leaders: 9 Groups whose leaders experienced positive moods had better coordination 9 Groups whose leaders experienced negative moods exerted more effort 10 -38

Emotional Intelligence and Leadership ªEmotional Intelligence 9 Helps leaders develop a vision for their firm 9 Helps motivate subordinates to commit to the vision 9 Energizes subordinates to work to achieve the vision 10 -39

Video: Japan CEO ªWhy does the CEO of Japan Airlines take a bus to work? ªWhat style of leadership does, CEO Naruka Nishimatsu, exhibit to his employees? 10 -40