1. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. THE LEADERSHIP IMPERATIVE: IT’S UP TO YOU Chapter 2 2–1

2. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter 2: The Leadership Imperative 1.Recognize why everyone needs to learn how to lead today. 2.Understand the characteristics of effective leadership. 3.Understand the characteristics of influential leadership. 4.Understand the characteristics of responsible leadership. 5.Assess theories and models of management and leadership. 6.Determine the necessity of transformational leadership. 2–2

3. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter 2: The Leadership Imperative 7.Describe HR’s role in supporting and fostering excellent and ethical leadership. 8.Describe the steps one must take to become a great leader. 2–3

4. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Great Opportunities, Greater Challenges  Enhanced Leadership Needed  Use Power Responsibly  Apply Skills  Live by Values and Ethics Introduction 1. Leadership: Whose Responsibility Is It? 2–4 We All Need to Become Great Leaders

5. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Three Secrets of an Outstanding Leader  Emotional and Social Competence Effective Leadership  Power Influential Leadership  Ethics Responsible Leadership Leadership Is Learned 1. Leadership: Whose Responsibility Is It? 2–5 Leaders are not born—they are made.

6. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 1. Leadership: Whose Responsibility Is It?  Why does organizational success depend on everyone assuming some leadership responsibilities? Discussion Questions 2–6

7. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  What Are Competencies?  Capabilities or Abilities  Intent and Action  Linked to Performance  Competencies in Social and Emotional Intelligence  Difference between Great and Average Leadership Mastering Competencies 2–7

8. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Motives  Traits  Self-Concept  Knowledge  Skills Competency components 2–8

9. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Differentiating competencies 2. What Is the Secret to Effective Leadership?  Threshold Competencies  Basic Expertise  Differentiating Competencies  Enhances Performance Threshold and Differentiating Competencies 2–9 Have become expected of almost everyone at work Threshold competencies

10. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Technical Competencies  Tools and Processes  Cognitive Competencies  “Big Picture”  Relational Competencies  Working with Colleagues/Customers Technical, Cognitive, and Relational Competencies 2–10 Cognitive comp. Relational comp. Technical comp.

11. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Set of Job-Specific Competencies  Numerous  Needed to Be Effective Competency Models 2–11

12. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Social and Emotional Intelligence  Self-Awareness  Self-Management  Social Awareness  Relationship Management Social and Emotional Competencies and Resonant Leadership 2–12

13. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Emotional Intelligence  Resonant Organizations  Resonant Leaders  Critical for Application Social and Emotional Competencies and Resonant Leadership 2–13 Source: Adapted from Boyatzis, Richard E. 2008. Competencies in the 21st century (Guest Editorial). Journal of Management Development 27(1): 9.

14. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Emotional Intelligence  Empathy  Limbic Resonance  Emotions Are Contagious Emotional Intelligence and Limbic Resonance 2–14  Self-Awareness  Ability to Notice  Ability to Understand  At the Heart of Emotional Intelligence Self-Awareness: The Foundation of Social and Emotional Intelligence

15. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2. What Is the Secret to Effective Leadership?  Think about an individual you know and respect at school or at work. What technical, cognitive, and relational competencies does the person have that you admire? Why do you admire these competencies?  Have you ever “caught” someone else’s emotions? If so, how could you have utilized self-awareness and self-control to protect yourself from taking on the negative emotions of others? Discussion Questions 2–15

16. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. The Opportunity …The Challenge …  If you have a clear idea about how power is used in organizations, you will be more likely to make ethical decisions, influence others, and deal well with destructive organizational politics.  Many people are uncomfortable with the idea of exercising power with the idea that others might use power to influence them.  The common view of ‘power’ is that with it come victims.  It is linked closely to culture. Different cultures view, use and distribute power differently. 3. What Is the Secret to Influential Leadership?  Power  Organizational Politics Introduction 2–16

17. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. What Is the Secret to Influential Leadership?  Legitimate Power  Reward Power  Coercive Power  Expert Power  Referent Power Sources of Power Exist in Different Forms 2–17

18. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Managerial power  Obtaining, maintaining, and using power are essential to influencing the behavior of people in organizational setting.  “Power is all perception. Its non-use is its most powerful use. The trick is to use the least amount of power to create the maximum amount of change. Someone who has elegance can apply power selectively, like a laser, and carefully, almost unobtrusively, so that you don’t feel you’re being overpowered. You feel you’re being motivated.”  Peter Gruber, quoted by Diane K. Shah in New York Times Magazine. 14-18

19. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Sources of Managerial Power

20. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Power: The Key to Leadership Legitimate Power – The authority that a manager has by virtue of his or her position in the firm. Reward Power – The ability of a manager to give or withhold tangible and intangible rewards. Coercive Power – The ability of a manager to punish others. Examples: verbal reprimand, pay cuts, and dismissal 14-20

21. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Power: The Key to Leadership  Expert Power  Power that is based on special knowledge, skills, and expertise that the leader possesses.  Referent Power  Power that comes from personal characteristics that people value and want to emulate and that cause people to feel respect or admiration. 14-21

22. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. What Is the Secret to Influential Leadership?  Making Decisions  Taking Responsibility  Democratic Participation  Self-Governance  Voicing Concerns  Contributing Ideas Empowerment 2–22

23. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. What Is the Secret to Influential Leadership? Empowered Employees and Organizations 2–23 Empowered Employees Have a say in how things get done Point out problems and improve work processes Empowering Organizations Systems and processes that encourage employee involvement Support programs that enable employees to deal directly with conflicts Are more engaged and committed, which drives them to surpass average performance Compensation programs that support collaboration and quality and discourage micromanagement

24. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. What Is the Secret to Influential Leadership? Empowerment and Theories X, Y, and Z 2–24 NameDefinition Theory X A belief system that holds that the average employee is inclined to be lazy, without ambition, and irresponsible. Theory Y A belief system that holds that workers are inherently ambitious, responsible, and industrious, and that they will work hard to help an organization reach its goals. Theory Z A theory stating that organizations have strong, relational cultures, that employees have discretionary freedom in local decision making and are trusted to work autonomously. Developed by Douglas McGregor. Developed by William Ouichi.

25. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. What Is the Secret to Influential Leadership?  “Flatter” Organizations  “Leaner” Organizations  Better Decisions  Changing Nature of Employment The Empowerment Movement Today 2–25

26. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3. What Is the Secret to Influential Leadership?  Discuss a situation from your experience in which power was abused. How was it abused, and what were the consequences for you personally and for others?  Drawing on your own experience at work and in school, discuss the pros and cons of an empowered workforce. Discussion Questions 2–26

27. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Ethics  Values  Terminal Values  Instrumental Values Developing Values and Ethics 2–27 How we lead is determined by what we value. How we lead is determined by what we value.

28. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Terminal and Instrumental Values 3-28

29. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Individual Ethics  Professional (or Occupational) Ethics  Organizational Ethics  Societal Ethics Levels of Ethics 2–29

30. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Individual Ethics  Social Environment  Professional (or Occupational) Ethics  Company Specific  Occupation Specific.  Extremely Controversial  Jobs Come with Ethical Code Levels of Ethics 2–30

31. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Organizational Ethics  Permeate a Company (runs deep)  Reflect How Employees, and other stakeholders are to be treated  Societal Ethics  Related to Culture  Heated Debates Signal Change Levels of Ethics 2–31

32. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Stakeholder Perspective  Shifting Value Systems  “Irreducible” Culture Differences Business Ethics: It’s Complicated 2–32

33. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Role of Law in Conflicting Global Ethical Views  New Laws Often Follow Ethical Violations  Laws Apply to Both Organizations and Their Leaders Ethics in Business and the Role of Law 2–33

34. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Ethical Dilemmas  Best Solutions Found by People Who Are in dialogue with one another Think deeply about what is best for all Dealing with Ethical Dilemmas at Work 2–34

35. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  The Slippery Slope  Find Your Own “Line in the Sand”  Rationalizing Unethical Behavior  Once in a While  Not Illegal; Not Unethical  “Pluralistic Ignorance” How to Handle Everyday Decisions Ethically 4.What Is the Secret to Responsible Leadership? 2–35 When all is said and done, ethical behavior is up to You!

36. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is the Secret to Responsible Leadership?  Have you ever rationalized unethical behavior (yours or someone else’s)? Why and how did you do this? Discussion Questions 2–36

37. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Major Theories  Trait Theories of Leadership.  Behavior Models and Approaches to Leadership.  Contingency Approaches to Leadership.  Limitations of Major Theories Introduction 2–37

38. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Enduring and Distinguishing Personal Characteristics  Prominent in the Early 1900s  Limitations  Seriously Flawed Studies Traits Theories of Leadership 2–38 Leadership Traits Identified in Research Personality Physical Characteristics Intelligence and Ability Social Background Work-Related Characteristics Social Characteristics

39. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Beyond Personal Characteristics and Traits  Focus on Actual Behaviors  Draw on Sociology, Psychology, and Anthropology Behavior Models and Approaches to Leadership 2–39

40. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Ohio State Studies  Two Major Dimensions of Behaviors Consideration-leaders engage in consideration when they show their subordinates that they trust, respect and care about them. Initiating structure-leaders engage in initiating structure when they make sure that work gets done, and the organization is effective and efficient. Behavior Models and Approaches to Leadership 2–40

41. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Leadership Grid  Robert Blake and Jane Mouton of the University of Texas  Managerial Behaviors Plotted on two axes Concern for production Concern for people Grouped into styles Behavior Models and Approaches to Leadership 2–41

42. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  One Size Does Not Fit All  Leader Behavior and Organizational Situation  Fiedler’s Contingency Theory  Situational Leadership Theory  Path-Goal Theory  Leader Substitutes Model Contingency Approaches to Leadership 2–42

43. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Fiedler’s Contingency Theory  Dependent on Leader and Situation Relationship-oriented Task-oriented  Difficult to Change Leadership Style  Match Leader to Situation Contingency Approaches to Leadership 2–43 Relationship- oriented leaders Emphasize good relationships and being liked by employees. Task-oriented leaders Focus on accomplishments and seek to ensure that employees perform well on the job.

44. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Situational Leadership Theory  Developed by Paul Hersey and Ken Blanchard  Links Leader with Followers  “Readiness” Leadership style adapts to each employee Contingency Approaches to Leadership 2–44 Telling styleSelling styleParticipating styleDelegating style Followers are unable, unwilling, or insecure Employees are unable to complete tasks but are willing and/or confident Employees are able but unwilling or insecure Employees are able, willing, or confident

45. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Path-Goal Theory of Leadership  Leader Responsible for Motivating Employees  Effective Leaders Boost Employee Motivation  Leader Substitutes Model  Certain Characteristics Make Direct Leadership Unnecessary Contingency Approaches to Leadership 2–45 It challenges the traditional idea that people have to be managed and led, and that if they are not, they will avoid work entirely or not work to their full potential.

46. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  If we can better understand how to guide, direct, and influence people, organizations will be more effective and probably more enjoyable places to work. Summary 2–46

47. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 5.How Do Theories and Models Explain Management and Leadership?  Study the common leadership traits in Exhibit 2.10 in the text. Which of these traits do you believe are most important to leadership? Why? Which of these traits do you possess? What traits can you adopt to become a more effective leader?  Choose two theories of leadership you have studied in this book. Explain why you think they are relevant for today’s business environment.  Consider a situation where you were expected to lead. Using contingency theories, describe your approach to leadership. Also, explain the reaction of your followers. How did you influence their abilities and willingness to work on the task at hand? Discussion Questions 2–47

48. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 6.Is It Time to Take a Stand for Transformational Leadership?  Transformational Leaders-value people and focus on employees' needs for appreciation, inspiration, meaningful work, and personal growth  Transactional Leaders-people who follow traditional approach to management in which leader leads and subordinate follows (You do the work I assign to you, and I will reward you for your effort). Introduction 2–48

49. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 6.Is It Time to Take a Stand for Transformational Leadership?  Describe the difference between transactional and transformational leadership.  How important is it for a leader to be transformational? Why? Use your experience to support your position.  Think about your leadership abilities, especially your social and emotional intelligence and your methods for inspiring people. Which emotional intelligence skills do you need to develop in order to become a more effective leader? Why did you choose these skills? Discussion Questions 2–49

50. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 7.What Is HR’s Role in Supporting Excellent and Ethical Leadership?  Role Is “Support”  Takes a Variety of Forms HR’s Leadership Roles 2–50

51. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 7.What Is HR’s Role in Supporting Excellent and Ethical Leadership?  Coach  Strategic Business Partner  Change Agent  Leadership Development Architect HR’s Leadership Roles 2–51

52. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 7.What Is HR’s Role in Supporting Excellent and Ethical Leadership?  HR Obligation to Ethical Leadership  Clarify the Organization's Code of Ethics  Programs Relevant to employee’s experiences Focused on developing good judgment Focused on reflection and dialogue Fully and visibly supported by management Ethical Leadership Development 2–52

53. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 7.What Is HR’s Role in Supporting Excellent and Ethical Leadership?  Think of an ethical dilemma in which you stood up for— or failed to stand up for—your beliefs. What are some of the factors that prompted you to respond in this way?  What is HR’s role in ensuring consistent leadership in the organization? Think of an example from an organization you belong to. How does that organization prepare people for leadership roles?  How do you think HR can help build an ethical organizational culture? How does this differ from the traditional “personnel” and “back office” functions HR professionals have filled in the past? Discussion Questions 2–53

54. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 8.What Can We All Do to Become Great Leaders?  Authenticity  Trust  Integrity  Courage 2–54

55. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 8.What Can You Do to Become a Great Leader?  Sometimes we think about self-awareness as understanding our mind (intellect), body (physical self), heart (emotions), and spirit (values). For each of these areas, discuss two or three things that you believe define who you are as a person.  Think of a situation in which you assumed a leadership role. How did you support others socially and emotionally? Were you always authentic in these interactions? How did your self- awareness inspire trust in others?  Discuss the role of integrity in college life, both inside the classroom and outside it. How do you maintain your personal integrity? What do you think contributes to the failure to maintain integrity? Discussion Questions 2–55

56. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 9.A Final Word on Leadership  Everyone Is a Leader  Everyone Can Become a Leader  Learn to Evaluate Leadership Theory  Develop Your Competencies 2–56

57. 2–57