8. leadership

Leadership

McGraw-Hill/IrwinContemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

chapter fourteen

Learning Objectives

• 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 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 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.

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Question?

What is an individual who is able to exert influence over other people to help achieve group or organizational goals?

A. ManagerB. LeaderC. ChiefD. Organizer

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The Nature of Leadership

• Leader– An individual who is able to exert influence over

other people to help achieve group or organizational goals

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 principal tasks of management.

– The challenge is for managers at all levels to develop an effective personal management style.

The Nature of Leadership• Distinction between managers and leaders– Managers establish and implement procedures to

ensure smooth functioning– Leaders look to the future and chart the course

for the organization

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Leadership 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 Power

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Power: The Key to Leadership

• Legitimate Power– The authority that a manager has by virtue of

his or her position in the firm.

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Power: The Key to Leadership• 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.

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• 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.

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• 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

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• 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

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Empowerment: An Ingredient in Modern Management

• 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

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Empowerment: An Ingredient in Modern Management

• Empowerment increases a manager’s ability to get things done

• Empowerment increases workers’ involvement, motivation, and commitment

• Empowerment gives managers more time to concentrate on their pressing concerns

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Leadership Models

• Trait Model– Attempt 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: leaders show subordinates they

trust, respect, and care about them– Managers look out for the well-being of their

subordinates– Do what they can to help subordinates feel good

and enjoy the work they perform

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Leadership Models

• Behavioral Model– Initiating structure: leaders take steps to make

sure that work gets done, subordinates perform their work acceptably, and the organization is efficient and effective

– Managers assign tasks to groups and let subordinates know what is expected of them

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Contingency Models of Leadership

• Contingency Models– What makes a manager an effective leader in one

situation is not necessarily what that manager needs to be equally effective in another situation

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• 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

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• 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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• 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– 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

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Fiedler’s Model

• 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.

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Fiedler’s Contingency Theory of Leadership

14-28Figure 14.2

House’s Path-Goal TheoryA 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 goals3. Clarifying the paths leading to the attainment of

work goals

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Question?

Which leadership behavior gives subordinates a say in matters that affect them?

A. Directive behaviorB. Supportive behaviorC. Participative behaviorD. Achievement-oriented behavior

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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.

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• Path-Goal identifies four leadership behaviors:– 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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Which behavior to be used depends on the nature of the subordinates and the kind of work they do

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The Leader Substitutes Model

• Leadership Substitute– Acts in the place of a leader and makes

leadership unnecessary. – Worker empowerment or self-managed work

teams reduce leadership needs.

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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.

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Transformational Leadership

Leadership that:1. Makes subordinates aware of the importance of

their jobs are 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

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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

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Being a Charismatic Leader

• Charismatic Leader– An enthusiastic, self-confident transformational

leader able to clearly communicate his vision of how good things could be

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Being a Charismatic Leader

• Charismatic Leader– 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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Intellectual Stimulation

• 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

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Developmental Consideration

• Developmental Consideration – Manager supports and encourages subordinates,

giving them opportunities to enhance their skills and capabilities and to grow and excel on the job

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Transactional 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.

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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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Gender and Leadership

• 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.

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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

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.

Recap of lecture

• Leading people• Influencing people• Commanding people• Guiding people

• Leader by the position achieved• Leader by personality, charisma • Leader by moral example• Leader by power held• Intellectual leader• Leader because of ability to accomplish

things

Managers vs. Leaders

Managers• Focus on things• Do things right• Plan• Organize• Direct• Control• Follows the rules

Leaders• Focus on people• Do the right things• Inspire• Influence• Motivate• Build • Shape entities

• Common activities• Planning • Organizing• Directing • Controlling

Leadership Traits• Intelligence– More intelligent

than non-leaders– Scholarship– Knowledge– Being able to get

things done• Physical– Doesn’t see to be

correlated

• Personality – Verbal facility – Honesty – Initiative– Aggressive– Self-confident– Ambitious– Originality– Sociability– Adaptability

Leadership Styles• Delegating– Low relationship/ low

task– Responsibility– Willing employees

• Participating– High relationship/ low

task– Facilitate decisions– Able but unwilling

• Selling – High task/high

relationship– Explain decisions– Willing but unable

• Telling– High Task/Low

relationship– Provide instruction– Closely supervise

New Leaders Take Note

• General Advice– Take advantage of

the transition period– Get advice and

counsel– Show empathy to

predecessor– Learn leadership

• Challenges– Need knowledge quickly– Establish new relationships– Expectations– Personal equilibrium

New Leader Traps

• Not learning quickly• Isolation• Know-it-all• Keeping existing team• Taking on too much

• Captured by wrong people

• Successor syndrome

Core Tasks

• Create Momentum• Master technologies of

learning, visioning, and coalition building

• Manage oneself

Create Momentum

• Foundation for change– Vision of how the

organization will look

– Build political base to support change

– Modify culture to fit vision

• Learn and know about company

• Securing early wins

– First set short term goals

– When achieved make a big deal

– Should fit long term strategy

Create Momentum

• Build credibility– Demanding but can

be satisfied– Accessible but not

too familiar– Focused but flexible– Active– Can make tough

calls but humane

Manage Oneself

• Be self-aware• Define your leadership style• Get advice and counsel– Advice is from expert to leader– Counsel is insight

• Types of help– Technical– Political– Personal

• Advisor traits– Competent– Trustworthy– Enhance your status

•END

8. leadership

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