1. Leadership: What Makes an Effective Leader?
ECFC CHAPTER 4
7/3/2001
Chapter 9
Leadership: What Makes an Effective Leader?

2. ECFC CHAPTER 4
7/3/2001
Chapter 9 Objectives
Describe the roles of leaders, managers, and followers.
Discuss leadership theories over time.
Identify leadership styles.
List skills required of leaders at different organizational levels.
Name basic characteristics and behaviors of effective leaders.
Explain leadership needs for the future.
Chapter 9 Leadership: What Makes an Effective Leader?

3. Understanding Leadership
Every group will have a leader.
The leader contributes to the success or failure of whatever effort he or she is leading.
There is currently a need for leaders who can restore confidence and reassure people of the integrity and quality of organizations.
Chapter 9 Leadership: What Makes an Effective Leader?

4. Understanding Leadership (cont.)
Becoming a Manager or a Leader
The terms leadership and management may be used interchangeably.
But a person can be a leader without being in an officially appointed management or supervisory position.
And a person can be a manager without being a leader.
Chapter 9 Leadership: What Makes an Effective Leader?

5. Understanding Leadership (cont.)
Becoming a Manager or a Leader (cont.)
Management is the use of resources, including human resources, to accomplish a goal.
Managers can be leaders only if employees allow them to influence their attitudes and behaviors.
Influence is the ability to change the attitude or behavior of an individual or group. This ability is the result of power.
Chapter 9 Leadership: What Makes an Effective Leader?

6. Understanding Leadership (cont.)
Becoming a Manager or a Leader (cont.)
Leadership is the process of influencing the activities of individuals or organized groups so they follow and willingly do what the leader wants them to do.
Leadership involves:
Dealing with people and developing rapport with them
Applying appropriate persuasion
Inspiring people
Influencing people to cooperate in pursuing your goals and vision
Chapter 9 Leadership: What Makes an Effective Leader?

7. Understanding Leadership (cont.)
Evolving Roles of Managers and Leaders
Changes in today’s business environment have created the need for a different kind of manager.
Challenges include:
Wider generational workforce
Rapid transitions in technology
Changing concept of what constitutes a business workplace
Chapter 9 Leadership: What Makes an Effective Leader?

8. Understanding Leadership (cont.)
Evolving Roles of Managers and Leaders (cont.)
Managers have to adapt their styles and techniques to deal with changing times.
New management styles encourage:
Creativity
Risk taking
Healthy conflict
Learning from errors
Chapter 9 Leadership: What Makes an Effective Leader?

9. Figure 9.1 Levels of Management within a Typical Hierarchy
Executives
Managers
Supervisors
Workers
Top
Management
Middle-Level
Management
First-Level
Supervision
Chapter 9 Leadership: What Makes an Effective Leader?

10. Understanding Leadership (cont.)
Follow the Leader
Success as a leader may depend on how well you develop your followers.
Take the opportunity to develop leadership talent among followers so they can take the initiative.
A valuable part of becoming a leader is being an effective follower.
Learning effective methods of following will improve opportunities for demonstrating leadership capabilities.
Chapter 9 Leadership: What Makes an Effective Leader?

11. The Evolution of Leadership Theories
The great man theory—certain people are born to become leaders and will eventually emerge in that role
Today, we know people can learn to be leaders.
Modern theories of leadership fall into three categories:
Trait theories
Behavioral theories
Situational theories
Chapter 9 Leadership: What Makes an Effective Leader?

12. The Evolution of Leadership Theories (cont.)
Do Common Leadership Traits Exist?
Researchers studied physical, personality, and intelligence traits of prominent leaders in various fields.
They found no conclusive common traits.
This led to the belief that the success of leaders is based on behavior rather than traits.
Chapter 9 Leadership: What Makes an Effective Leader?

13. The Evolution of Leadership Theories (cont.)
Behavioral Theories
Behavioral theorists believed that successful leaders could be identified by what they do rather than what they have.
Researchers measured typical leader behaviors:
Degree of control or authority
Flexibility
Concern about getting job done (task accomplishment)
Concerns for subordinates or others
Chapter 9 Leadership: What Makes an Effective Leader?

14. The Evolution of Leadership Theories (cont.)
Behavioral Theories (cont.)
McGregor suggested that leaders treat followers according to assumptions about what motivates those followers.
Theory X says people inherently avoid responsibility and dislike work—leadership should be strict and controlling.
Theory Y says people are eager to work and capable of doing a good job—leadership should be supportive and participative.
Chapter 9 Leadership: What Makes an Effective Leader?

15. The Evolution of Leadership Theories (cont.)
Behavioral Theories (cont.)
In the two-dimensional Managerial Grid® theory, a grid is used to plot the degree to which leaders
Show concern for people
Show concern for production (getting the job done)
The coordinates indicate a leadership style.
Chapter 9 Leadership: What Makes an Effective Leader?

16. The Evolution of Leadership Theories (cont.)
Situational or Contingency Theories
Fiedler suggested that some leaders function best in highly directive situations while others are more permissive.
Organizations should consider each situation before assigning leaders because the same person may be effective in one situation but not in another.
Chapter 9 Leadership: What Makes an Effective Leader?

17. The Evolution of Leadership Theories (cont.)
Situational or Contingency Theories (cont.)
Hersey and Blanchard developed a blend of the ideas of Blake and Mouton and Fiedler.
Their model says that leadership style used with followers will vary, depending on:
The job to be done
Where it’s to be done
How it’s to be done
When it’s to be done (job situation)
Chapter 9 Leadership: What Makes an Effective Leader?

18. Leadership Styles
A leadership style is a leader’s pattern of behavior.
Autocratic leadership style:
Authoritarian and directive
Democratic leadership style:
Participative and easy-going; preferred by managers and employees
Free-rein leaders:
Integrative; employees lead themselves
Chapter 9 Leadership: What Makes an Effective Leader?

19. Effective Leadership Skills
Technical skills:
Skills required to perform a particular task
Conceptual skills:
Administrative, problem solving, and “big picture” skills
Human relations skills:
Ability to deal effectively with people
Chapter 9 Leadership: What Makes an Effective Leader?

20. Effective Leadership Skills (cont.)
Leadership skills can be acquired or developed through observation, education, and experience.
You may acquire skills through:
Leadership training classes
Starting a learning library
Coaching and mentoring
Chapter 9 Leadership: What Makes an Effective Leader?

21. Characteristics and Behaviors of Leaders
Functional Abilities
Gulick’s acronym for identifying the basic functions of business leadership: PODSCORB
Planning
Organizing
Directing
Staffing
Coordinating
Reporting
Budgeting
Chapter 9 Leadership: What Makes an Effective Leader?

22. Characteristics and Behaviors of Leaders (cont.)
Key characteristics of effective leaders:
Communication
Good decision making
Taking risks
Motivation
Delegation
Chapter 9 Leadership: What Makes an Effective Leader?

23. Characteristics and Behaviors of Leaders (cont.)
Attitude and Behaviors
Most expected and respected behaviors of an effective leader include:
Being passionate
Being open-minded
Being enthusiastic
Being empathetic
Being ethical
Being competent
Being courteous
Being considerate
Being fair
Being honest
Being trustworthy
Chapter 9 Leadership: What Makes an Effective Leader?

24. Leadership Today Transactional Leadership
Transactional leadership requires that leaders:
Determine what followers need to achieve their own and organizational goals
Classify those needs
Help followers gain confidence that they can reach their objectives
It involves hierarchies and structures and followers directed by leaders.
Chapter 9 Leadership: What Makes an Effective Leader?

25. Leadership Today (cont.)
Transformational Leadership
Transformational leadership motivates followers to do more by raising the perceived value of the task and by getting them to:
Transcend self-interest for the sake of the group goal
Make positive changes
Strive toward self-actualization
This leadership style encourages more and better everything for the greater good of the group.
Chapter 9 Leadership: What Makes an Effective Leader?

26. Leadership Today (cont.)
Servant Leadership
The servant leader believes his or her mission is to serve the needs of others.
Servant leaders have qualities such as honesty, good listening skills, patience, and gratitude.
They are more concerned about the needs of others than their own.
They use their talents to benefit the group.
Chapter 9 Leadership: What Makes an Effective Leader?

27. Leadership Today (cont.)
Leadership with Emotional Intelligence
Effective leaders have a high degree of emotional intelligence.
They understand and manage their own feelings and have empathy for others.
They have a passion to work and pursue goals with energy and persistence.
They’re good at managing relationships and building networks and are skilled at finding common ground and building rapport.
Chapter 9 Leadership: What Makes an Effective Leader?

28. Leadership Today (cont.)
Leadership Differences in Men and Women
Men and women may be perceived as acting differently in leadership positions:
Men may be more task oriented.
Women may be more relationship oriented.
Some management thinkers believe the similarities between male and female leaders outweigh the differences.
Chapter 9 Leadership: What Makes an Effective Leader?

29. Key Terms Influence Leadership Great man theory Theory X Theory Y
Managerial Grid®
Autocratic leadership
Democratic leadership
Free-rein leadership
Technical skills
Conceptual skills
Human relations skills
PODSCORB
Delegation
Transactional leadership
Transformational leadership
Chapter 9 Leadership: What Makes an Effective Leader?