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

2. Learning Objectives
LO1 Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders
LO2 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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3. Learning Objectives (cont.)
LO3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations
LO4 Describe what transformational leadership is, and explain how managers can engage in it
LO5 Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness.
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4. The Nature of 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
Effective leadership increases the firm’s ability to meet new challenges.
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5. The Nature of Leadership
Exert influence over other people to help achieve group or organizational goals
Look to the future
Provide meaning and purpose
Managers
Organizational members who establish and implement procedures and processes
Accountable for goal accomplishment
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6. 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
Leaders may delegate and support subordinates, while others are very authoritarian.
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7. 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
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8. 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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9. Sources of Managerial Power
Figure 10.1
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10. 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
Legitimate Power
The authority that a manager has by virtue of his or her position in the firm.
Example: the power to hire or fire employees.
Reward Power
The ability of a manager to give or withhold tangible and intangible rewards.
Example: awarding pay raises or providing verbal praise for good performance.
Effective managers use reward power to signal to employees that they are doing a good job.
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11. 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
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.
Expert Power
Power that is based on special knowledge, skills, and expertise that the leader possesses.
First-line and middle managers have the most expert power; most often consists of technical ability.
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12. 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.
Usually held by and available for use by likable managers who are concerned about their workers.
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13. Empowerment: An Ingredient in Modern Management
The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes
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14. Empowerment: An Ingredient in Modern Management
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
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15. 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.
Research shows that certain personal characteristics do appear to be connected to effective leadership.
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16. The Behavior Model Behavior Model
Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates
1. Consideration: Respect
2. Initiating Structure: Organizing
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17. The Behavior Model Consideration
Behavior indicating that a manager trusts, respects and cares about subordinates
Initiating structure
Behavior that managers use to get work done. Used to insure that others perform their jobs and the organization is efficient and effective
Behavioral Model
Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates
Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.
Both behaviors are independent; managers can be high or low on both behaviors.
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18. Contingency Models of Leadership
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
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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19. Contingency Models of Leadership
Fiedler’s Model
Personal characteristics can influence leader effectiveness
Leader style is the manager’s characteristic approach to leadership
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20. 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 main concern is to ensure that subordinates perform at a high level and focus on task accomplishment
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21. 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
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22. Fiedler’s Model Task structure Position Power
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
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23. Fiedler’s Contingency Theory of Leadership
Figure 10.2
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24. House’s Path-Goal Theory
A contingency model of leadership proposing the effective leaders can motivate subordinates by:
Identifying (clearly) the outcomes workers are trying to obtain from their jobs.
Rewarding workers for high-performance and goal attainment with the outcomes they desire
Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability.
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25. House’s Path-Goal Theory
Directive behaviors
Set goals, assign tasks, show how to do things
Supportive behaviors
Looking out for the worker’s best interests
Participative behaviors
Give subordinates a say in matters that affect them
Achievement-oriented behaviors
Setting challenging goals and believing in worker’s abilities
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26. 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
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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27. 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
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28. Being a Charismatic Leader
An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be
Intellectual Stimulation
Behavior a transformational or charismatic leader engages in to make followers aware of problems and view these problems in new ways, consistent with the leader’s vision
Charismatic 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.
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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29. Transactional Leadership
Leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance
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30. 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.
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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31. 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
“Whose fault is it?”
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32. Emotional Intelligence and Leadership
Helps leaders develop a vision for their firm
Helps motivate subordinates to commit to the vision
Energizes subordinates to work to achieve the vision
The Moods of Leaders:
Affect their behavior and effectiveness as leaders
Affect the performance of their subordinates
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