Chapter 10 Leaders and Leadership

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 behavior models of leadership. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations. Describe what transformational leadership is, and explain how mangers can engage in it. Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness.

The nature of leadership Leadership: the process by which an individual exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals. Leader: an individual who is able to exert influence over other people to help achieve group or organizational goals.

Personal leadership style: the specific ways in which a manager chooses to influence other people shapes how that manager approaches planning, organizing, and controlling(the other principle of managing). Servant leader: a leader who has a strong desire to serve and work for the benefit of others. Leadership styles across cultures: the US is short them performance and Japan is long term performance, Who cares more about individual growth?

Power: the key to leadership The power the leader has to affect other people’s behavior and get them to act in certain ways Legitimate power: the authority that a manager has by virtue of his or her position in an organization’s hierarchy 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 Expert power: power that is based on the special knowledge, skills, and expertise that a leader possesses. Referent power: power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty. Empowerment: the expansion of employees’ knowledge, tasks, and decision making responsibilities.

Traits and Behavior Models of Leadership Description Intelligence Helps managers understand complex and solve problems Knowledge and expertise Help managers make good decisions and discover ways to increase efficiency and effectiveness Dominance Helps managers influence their subordinates to achieve organizational goals Self confidence Contributes to managers’ effectively influencing subordinates and persisting when faced with obstacles or difficulties High energy Helps managers deal with the many demands they face Tolerance for stress Helps managers deal with uncertainty and make difficult decisions Integrity and honesty Help managers behave ethically and earn their subordinates’ trust and confidence Maturity Helps mangers avoid acting selfishly, control their feelings, and admit when they have made a mistake.

Behavior Model Model to successfully influence subordinates Consideration: behavior indicating that a manager trusts, respects, and cares about subordinates Initiating structure: behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective

Contingency Models of Leadership Takes into account the situation or context within which leadership occurs.

Contingency Models of Leadership – Fred Fiedler Leader style: Relationship oriented leaders: leaders whose primary concern is to develop good relationships with their subordinates and to be liked by them. Task oriented leaders: leaders whose primary concern is to ensure that subordinates perform at a high level. Situational characteristics: Leader member relations: the extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading. Task structure: the 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; a determinant of how favorable a situation is for leading. Position power: the amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization; a determinant of how favorable a situation is for leading

Contingency Models of Leadership: House’s Path-Goal Theory Path-goal theory: A contingency model of leadership proposing that leaders can motivate subordinates by identifying their desired outcomes, rewarding them for high performance and the attainment of work goals with these desired outcomes, and clarifying for them the paths leading to the attainment of work goals. Directive behaviors: similar to initiating structure, goal setting, assigning tasks, demonstrating how to complete tasks, and taking concrete steps to improve performance. Good when employee is having difficulty completing task Supportive behaviors: similar to consideration and includes expressing concern for subordinates and looking out for their best interests. Good when employees experiencing stress Participative behaviors: give subordinates a say in matters and decisions that affect them. Good when you need subordinates’ support of decision Achievement oriented behaviors: motivate subordinates to perform at the highest level possible, Best to increase motivation levels of capable employees that have too few challenges

Contingency Models of Leadership Leadership Substitutes Model: a characteristic of a subordinate or of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary. SOMETIMES you don’t need a boss.

Transformational Leadership TL: leadership that makes subordinates aware of the importance of their jobs and performance to the organization and aware of their own needs for personal growth and that motivates subordinates to work for the good of the organization. Transformational managers are: Charismatic Intellectually stimulate subordinates Engage in developmental consideration Subordinates of transformational managers: Have increased awareness of the importance of their jobs and high performance Are aware of their own needs for growth, development, and accomplishment Work for the good of the organization and not just their own personal benefit

Contingency Models of Leadership Charismatic leaders: an enthusiastic, self confident leader who is able to clearly communicate his or her vision of how good things could be. Intellectual stimulation: behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader’s vision Developmental consideration: behavior a leader engages in to support and encourage followers and help them develop and grow on the job Transactional leadership: leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance.

Gender and leadership: women tend to be more relationship oriented and men more task oriented Emotional intelligence: the moods and emotions of a leader can influence their effectiveness as leaders.