1. Leaders and Leadership
Chapter 10
Leaders and Leadership

2. 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

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

4. The Nature of Leadership
Leadership: Process by which a person 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

5. The Nature of Leadership
Personal leadership style
Specific ways in which a manager chooses to influence others
Shapes the way that manager approaches the other tasks of management
Challenge is for managers at all levels to develop an effective personal management style
Leaders look to the future, chart the course for the organization, and attract, retain, motivate, inspire, and develop relationships with employees

6. The Nature of Leadership
Servant leaders: Have a strong desire to serve and work for the benefit of others
Share power with followers
Strive to ensure that followers’ most important needs are met

7. Question What culture has the most effective leadership style?
A. Japanese
B. European
C. United States
D. Middle Eastern
There is no one correct answer. This will give students an opportunity to discuss the differences in leadership styles in different cultures.

8. Leadership Styles Across Cultures
Leadership styles may vary among different countries or cultures
European managers tend to be more people- oriented than American or Japanese managers
In Japan the prime emphasis is on a group rather that an individual
Organizations in the United States tend to be very profit-oriented and thus tend to downplay the importance of individuals
Cross-cultural difference occur in time horizons

9. Figure 10.1 - Sources of Managerial Power

10. Question
What type of power is the ability of a manager to give or withhold tangible and intangible rewards?
A. Reward
B. Coercive
C. Expert
D. Legitimate
The correct answer is “A” – reward power.

11. Power: The Key to Leadership
A key component of effective leadership is found in the power the leader has
Legitimate power: Authority that a manager has by virtue of his or her position in an organizational hierarchy
Reward power: Ability of a manager to give or withhold tangible and intangible rewards
Effective managers use their reward power to show appreciation for subordinates’ good work and efforts
Ineffective managers use rewards in a controlling manner

12. Power: The Key to Leadership
Coercive power: Ability of a manager to punish others
Excessive use of coercive power seldom produces high performance and is questionable ethically
Expert power: Is based on special knowledge, skills, and expertise that a leader possesses
Expert power tends to be best used in a guiding or coaching manner

13. Power: The Key to Leadership
Referent power: Comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration
Managers can take steps to increase their referent power
Spending time to get to know their subordinates, showing concern for them

14. Empowerment: An Ingredient in Modern Management
Empowerment: Expansion of employees’ knowledge, tasks, and decision making responsibilities
Empowerment contributes to effective leadership by:
Increasing a manager’s ability to get things done with the support and help of subordinates
Increasing workers’ involvement, motivation, and commitment
Enabling managers can spend less time on daily supervision activities

15. Leadership Models Trait model
Focuses on identifying personal characteristics that cause effective leadership
Identifies traits like the leader's skills, abilities, intelligence, knowledge, expertise, dominance, integrity and honesty
Some effective leaders do not possess all these traits, and some leaders who possess them are not effective in their leadership roles

16. Question?
Which leadership model identifies the two basic types of behavior that many leaders engaged in to influence their subordinates?
A. Fiedler
B. Path-goal
C. Behavioral
D. Trait
The correct answer is “C” – behavioral model.

17. The Behavior Model
Behavioral model: Identifies the two basic types of behavior that many leaders engage in to influence their subordinates—consideration and initiating structure
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

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
Effectiveness of a leader with certain traits is contingent on the situation or context in which he performs

19. Contingency Models of Leadership
Fiedler’s model
Personal characteristics can influence leader effectiveness
Leader style is the manager’s characteristic approach to leadership
Identifies two basic leader styles: Relationship- oriented and task-oriented

20. Relationship-oriented style
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 primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment

21. Fiedler’s Model Situation characteristics
Leadership style is an enduring characteristic
Three important situational characteristics determine how favorable a situation is for leading
Leader–member relations
Task structure
Position power

22. Fiedler’s Model
Leader–member relations: Extent to which followers like, trust, and are loyal to their leader
Task structure: 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: Amount of legitimate, reward, and coercive power leaders have by virtue of their position

23. Figure 10.2 - Fiedler’s Contingency Theory of Leadership

24. House’s Path-Goal Theory
A contingency model of leadership proposing the effective leaders can motivate subordinates by:
Clearly identifying the outcomes workers are trying to obtain from their jobs
Rewarding workers for high-performance and goal attainment with the outcomes they desire
Clarifying for subordinates the paths leading to the attainment of work goals

25. House’s Path-Goal Theory
Directive behaviors include setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance
Supportive behaviors include expressing concern for subordinates and looking out for their best interests
Participative behaviors give subordinates a say in matters and decisions that affect them
Achievement-oriented behaviors motivate subordinates to perform at the highest level possible

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
Characteristics of subordinates—such as their skills, abilities, experience, knowledge, and motivation
Characteristics of the situation or context —such as the extent to which the work is interesting and enjoyable

27. Transformational Leadership
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

28. Being a Charismatic Leader
Charismatic leader: Enthusiastic, self-confident leader who is able to clearly communicate his or her vision of how good things could be
Their vision usually entails improvements in the organization’s structure, culture, strategy, decision making, and other critical processes

29. Intellectual Stimulation
Behavior a leader engages in to make followers be aware of problems and view those problems in new ways, consistent with the leader’s vision

30. Developmental Consideration
Behavior a leader engages in to support and encourage followers and help them develop and grow on the job

31. Transactional Leadership
Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance
Many transformational leaders engage in transactional leadership
Reward subordinates for a job well done and notice and respond to substandard performance
When leaders engage in transformational leadership, their subordinates tend to have higher levels of job satisfaction and performance

32. 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 while men are seen as task-focused
Key research outcomes
Male and female managers do not differ significantly in their propensities to perform different leader behaviors
Male and female managers tend to be equally effective as leaders

33. Emotional Intelligence and Leadership
A leader’s level of emotional intelligence plays a particularly important role in leadership effectiveness
Emotional intelligence may enable leaders to:
Motivate their subordinates to commit to their vision
Develop a significant identity for their organization and instill high levels of trust and cooperation throughout the organization
Respond appropriately when they realize they have made a mistake