1. POWER, AUTHORITY, AND LEADERSHIP
Unit 6: Leadership Skills
(Textbook: Business Management: Real World Applications and Connections, Glencoe/McGraw-Hill. Woodland Hills, CA.)

2. What is power?
Power is the ability to make other people act in certain ways. Example: Bill Gates is not only powerful because he has the power to fire employees, but also because he is a well-respected computer software expert.

3. What is authority?
Authority is the right to issue directives and expend resources. Example: An advisor to the President of the United States may have no authority to make decisions. However, if the person has influence over the President, he or she may have significant power.

4. What is leadership?
Leadership is the ability to influence people. Leaders must have a vision for the future, develop strategies for achieving that vision, and motivate employees to implement them. They must also have a leadership style.

5. Leadership Styles
Autocratic leaders are leaders who do not listen to other people but make all decisions themselves.
Laissez-Faire leaders choose not to lead. They are usually thrust unexpectedly into a leadership position. Sometimes they lack confidence and allow others in the group to take the lead.
Democratic leaders listen to other people’s opinions and encourage the exchange of ideas. They are usually the best kind of leaders.

6. Good Leadership Skills (continued)
5. Build a team. Good leaders see themselves as team captains and inspire confidence in team members by striving for excellence and encouraging others to contribute.
6. Set an example: Good leaders strive to set a good example. They treat others with respect, listen to other people’s views, meet deadlines, and remain cool under pressure.
7. Share credit with subordinates. Good leaders accept full responsibility when things go wrong and share credit with others when things go right.

7. Good Leadership Skills
To become effective leaders, managers need to master the following sets of skills:
Detailed in developing plans of action
Become a teacher to help employees learn good problem-solving skills.
Delegate. Managers need to delegate responsibility.
Encourage independent thinking. Good leaders encourage their subordinates to come to them with problems and solutions.