Leaders and Leadership Chapter Ten Mc GrawHillIrwin Copyright

Leaders and Leadership Chapter Ten Mc. Graw-Hill/Irwin Copyright © 2011 by the Mc. Graw-Hill Companies, Inc. All rights reserved.

Learning Objectives LO 1 Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders LO 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 3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations LO 4 Describe what transformational leadership is, and explain how managers can engage in it LO 5 Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness. 10 -3

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

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 10 -6

The Nature of Leadership • Servant leaders – leader who has a strong desire to serve and work for the benefit of others – shares power with followers – 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 – 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 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 • Legitimate Power – The authority that a manager has by virtue of his or her position in an organizational hierarchy • Reward Power – The ability of a manager to give or withhold tangible and intangible rewards 10 -12

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 a leader possesses 10 -13

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. 10 -14

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 10 -15

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

Leadership Models • 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. 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 • Behavioral Model – Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates 10 -19

The Behavior Model • Consideration – behavior indicating that a manager trusts, respects, and cares about subordinates • Initiating structure – 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 • Contingency Models – 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 • Fiedler’s Model – Personal characteristics can influence leader effectiveness – Leader style is the manager’s characteristic approach to leadership 10 -22

Contingency Models of Leadership • 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 and focus on task accomplishment 10 -23

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 10 -24

Fiedler’s Model • Task structure – 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 • Position Power – the amount of legitimate, reward, and coercive power leaders have by virtue of their position – When positional power is strong, leadership opportunity becomes more favorable 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 • Directive behaviors – set goals, assign tasks, show to do things • Supportive behavior – look out for the worker’s best interest 10 -28

House’s Path-Goal Theory • Participative behavior – give subordinates a say in matters that affect them • Achievementoriented behavior – Setting very challenging goals, believing in worker’s abilities 10 -29

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 10 -30

The Leader Substitutes Model • 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. 10 -31

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 10 -32

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

Intellectual Stimulation • 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 10 -34

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

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

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. 10 -37

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

Emotional Intelligence and Leadership • 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 10 -39

Video Case: Google Extends Charitable Giving • Are Google co-founders Brin and Page servant leaders? How about Larry Brilliant? • What would you say is the biggest source of Larry Brilliant’s power as a leader? • How does google. org illustrate empowerment at Google? 10 -40