1. © Copyright 2004 McGraw-Hill. All rights reserved.10–1 The Nature of Leadership LeadershipLeadership  The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. Effective leadership increases the firm’s ability to meet new challenges.Effective leadership increases the firm’s ability to meet new challenges. LeaderLeader  An individual who is able to exert influence over other people to help achieve group or organizational goals.

2. © Copyright 2004 McGraw-Hill. All rights reserved.10–2 Sources of Managerial Power Figure 10.1

3. © Copyright 2004 McGraw-Hill. All rights reserved.10–3 Empowerment: An Ingredient in Modern Management EmpowermentEmpowerment  The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes.  Empowerment helps managers: Get workers involved in the decisions.Get workers involved in the decisions. Increase worker commitment and motivation.Increase worker commitment and motivation. Have time to focus on other issues.Have time to focus on other issues. Effective managers usually empower substantial authority to workers.Effective managers usually empower substantial authority to workers.

4. © Copyright 2004 McGraw-Hill. All rights reserved.10–4 Leadership Models Trait ModelTrait Model  An attempt to identify personal characteristics that are the causes for effective leadership. Research shows that certain personal “traits” do appear to be connected to effective leadership.Research shows that certain personal “traits” 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.Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.

5. © Copyright 2004 McGraw-Hill. All rights reserved.10–5 Traits and Personal Characteristics Related to Effective Leadership IntelligenceIntelligence DominanceDominance Self-confidenceSelf-confidence High energyHigh energy Tolerance for stressTolerance for stress Integrity and honestyIntegrity and honesty MaturityMaturity

6. © Copyright 2004 McGraw-Hill. All rights reserved.10–6 Leadership Models (cont’d) Behavioral ModelBehavioral Model  Identifies two basic types of behavior leaders engaged in to influence their subordinates: Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates.Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates. Initiating structure: job-oriented leadership behavior that managers use to ensure that work gets done, subordinates perform acceptably, and the organization is efficient and effective.Initiating structure: job-oriented leadership behavior that managers use to ensure that work gets done, subordinates perform acceptably, and the organization is efficient and effective. Both behaviors are independent; managers can be high or low on both behaviors.Both behaviors are independent; managers can be high or low on both behaviors.

7. © Copyright 2004 McGraw-Hill. All rights reserved.10–7 Contingency Models of Leadership Fiedler’s ModelFiedler’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. Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them.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.Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done.

8. © Copyright 2004 McGraw-Hill. All rights reserved.10–8 House’s Path-Goal Theory A contingency model of leadership proposing the effective leaders can motivate subordinates by: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, removing obstacles to performance, and expressing confidence in worker’s ability.

9. © Copyright 2004 McGraw-Hill. All rights reserved.10–9 The Leader Substitutes Model Leadership SubstituteLeadership Substitute  Acts in the place of a leader and makes leadership unnecessary. Possible substitutes can be found in: Characteristics of the subordinates—their skills, experience, motivation.Characteristics of the subordinates—their skills, experience, motivation. Characteristics of context—the extent to which work is interesting and fun.Characteristics of context—the extent to which work is interesting and fun.  Worker empowerment or self-managed work teams reduce leadership needs.  Managers should be aware that they do not always need to directly exert influence over workers.

10. © Copyright 2004 McGraw-Hill. All rights reserved.10–10 Transformational Leadership Leadership that: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.

11. © Copyright 2004 McGraw-Hill. All rights reserved.10–11 Being a Charismatic Leader Charismatic LeaderCharismatic Leader  An enthusiastic, self-confident transformational leader able to clearly communicate his or her vision of how good things could be by: Being excited and clearly communicating excitement to subordinates.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.Openly sharing information with employees so that everyone is aware of problems and the need for change. Empowering workers to help with solutions.Empowering workers to help with solutions. Engaging in the development of employees by working hard to help them build skills.Engaging in the development of employees by working hard to help them build skills.

12. © Copyright 2004 McGraw-Hill. All rights reserved.10–12 Transactional Leadership Transactional LeadershipTransactional Leadership  Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance. Transactional leaders “exchange” rewards for performance and punish failure.Transactional leaders “exchange” rewards for performance and punish failure. Transactional leaders push subordinates to change but do not seem to change themselves.Transactional leaders push subordinates to change but do not seem to change themselves. Transactional leaders do not have the “vision” of the transformational leader.Transactional leaders do not have the “vision” of the transformational leader.

13. © Copyright 2004 McGraw-Hill. All rights reserved.10–13 Gender and Leadership The number of women managers is rising but is still low in the top levels of management.The number of women managers is rising but is still low in the top levels of management.  Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused. Research indicates that there is no gender-based difference in leadership effectiveness.Research indicates that there is no gender-based difference in leadership effectiveness. Women are more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills.Women are more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills.