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Leaders and Leadership

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1 Leaders and Leadership
Chapter Ten McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

2 Learning Objectives LO1 Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders LO2 Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership 10-2

3 Learning Objectives (cont.)
LO3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations LO4 Describe what transformational leadership is, and explain how managers can engage in it LO5 Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness. 10-3

4 The Nature of Leadership
The process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals Effective leadership increases the firm’s ability to meet new challenges. 10-4

5 The Nature of Leadership
Exert influence over other people to help achieve group or organizational goals Look to the future Provide meaning and purpose Managers Organizational members who establish and implement procedures and processes Accountable for goal accomplishment 10-5

6 The Nature of Leadership
Personal Leadership Style The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management. The challenge is for managers at all levels to develop an effective personal management style Leaders may delegate and support subordinates, while others are very authoritarian. 10-6

7 The Nature of Leadership
Servant leaders Leader who has a strong desire to serve and work for the benefit of others Shares power with followers Strives to ensure that followers’ most important needs are met 10-7

8 Leadership Across Cultures
Leadership styles may vary among different countries or cultures European managers tend to be more people-oriented than American or Japanese managers Japanese managers are group-oriented, while U.S managers focuses more on profitability Time horizons also are affected by cultures 10-8

9 Sources of Managerial Power
Figure 10.1 10-9

10 Power: The Key to Leadership
Legitimate Power The authority that a manager has by virtue of his or her position in an organizational hierarchy Reward Power The ability of a manager to give or withhold tangible and intangible rewards Legitimate Power The authority that a manager has by virtue of his or her position in the firm. Example: the power to hire or fire employees. Reward Power The ability of a manager to give or withhold tangible and intangible rewards. Example: awarding pay raises or providing verbal praise for good performance. Effective managers use reward power to signal to employees that they are doing a good job. 10-10

11 Power: The Key to Leadership
Coercive Power The ability of a manager to punish others Expert Power Power that is based on special knowledge, skills, and expertise that a leader possesses Coercive Power The ability of a manager to punish others. Examples: verbal reprimand, pay cuts, and dismissal Limited in effectiveness and application; can have serious negative side effects. Expert Power Power that is based on special knowledge, skills, and expertise that the leader possesses. First-line and middle managers have the most expert power; most often consists of technical ability. 10-11

12 Power: The Key to Leadership
Referent Power Power that comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration. Usually held by and available for use by likable managers who are concerned about their workers. 10-12

13 Empowerment: An Ingredient in Modern Management
The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes 10-13

14 Empowerment: An Ingredient in Modern Management
Increases a manager’s ability to get things done Increases workers’ involvement, motivation, and commitment Gives managers more time to concentrate on their pressing concerns 10-14

15 Leadership Models Trait Model
Focused on identifying personal characteristics that cause effective leadership. Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits. Research shows that certain personal characteristics do appear to be connected to effective leadership. 10-15

16 The Behavior Model Behavior Model
Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates 1. Consideration: Respect 2. Initiating Structure: Organizing 10-16

17 The Behavior Model Consideration
Behavior indicating that a manager trusts, respects and cares about subordinates Initiating structure Behavior that managers use to get work done. Used to insure that others perform their jobs and the organization is efficient and effective Behavioral Model Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective. Both behaviors are independent; managers can be high or low on both behaviors. 10-17

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 Contingency Models What makes a manager an effective leader in one situation is not necessarily what that manager needs to be equally effective in another situation 10-18

19 Contingency Models of Leadership
Fiedler’s Model Personal characteristics can influence leader effectiveness Leader style is the manager’s characteristic approach to leadership 10-19

20 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 main concern is to ensure that subordinates perform at a high level and focus on task accomplishment 10-20

21 Fiedler’s Model Situation Characteristics
How favorable a situation is for leading to occur Leader-member relations—determines how much workers like and trust their leader 10-21

22 Fiedler’s Model Task structure Position Power
the 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 the amount of legitimate, reward, and coercive power leaders have by virtue of their position When positional power is strong, leadership opportunity becomes more favorable 10-22

23 Fiedler’s Contingency Theory of Leadership
Figure 10.2 10-23

24 House’s Path-Goal Theory
A contingency model of leadership proposing the effective leaders can motivate subordinates by: Identifying (clearly) the outcomes workers are trying to obtain from their jobs. Rewarding workers for high-performance and goal attainment with the outcomes they desire Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability. 10-24

25 House’s Path-Goal Theory
Directive behaviors Set goals, assign tasks, show how to do things Supportive behaviors Looking out for the worker’s best interests Participative behaviors Give subordinates a say in matters that affect them Achievement-oriented behaviors Setting challenging goals and believing in worker’s abilities 10-25

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 Possible substitutes can be found in: Characteristics of the subordinates: their skills, experience, motivation Characteristics of context: the extent to which work is interesting and fun 10-26

27 Transformational Leadership
Leadership that: 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 10-27

28 Being a Charismatic Leader
An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be Intellectual Stimulation Behavior a transformational or charismatic leader engages in to make followers aware of problems and view these problems in new ways, consistent with the leader’s vision Charismatic Leader An enthusiastic, self-confident transformational leader able to clearly communicate his or her vision of how good things could be by: Being excited and clearly communicating excitement to subordinates. Openly sharing information with employees so that everyone is aware of problems and the need for change. Empowering workers to help with solutions. Engaging in the development of employees by working hard to help them build skills. 10-28

29 Transactional Leadership
Leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance 10-29

30 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. Similarly, men are seen as task-focused. Research indicates that actually there is no gender-based difference in leadership effectiveness. Women are seen to be more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills. 10-30

31 Emotional Intelligence and Leadership
The Moods of Leaders: Groups whose leaders experienced positive moods had better coordination Groups whose leaders experienced negative moods exerted more effort “Whose fault is it?” 10-31

32 Emotional Intelligence and Leadership
Helps leaders develop a vision for their firm Helps motivate subordinates to commit to the vision Energizes subordinates to work to achieve the vision The Moods of Leaders: Affect their behavior and effectiveness as leaders Affect the performance of their subordinates 10-32

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