Leaders and

Leadership

Chapter Ten

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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

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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.

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The Nature of Leadership

• 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

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The Nature of Leadership

• Leaders– Exert influence over

other people to help achieve group or organizational goals

– Look to the future– Provide meaning and

purpose

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• Managers– Organizational

members who establish and implement procedures and processes

– Accountable for goal accomplishment

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

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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

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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

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Sources of Managerial Power

Figure 10.110-9

Power: The Key to Leadership

1. Legitimate Power– The authority that a manager has by virtue of his

or her position in an organizational hierarchy

2. Reward Power– The ability of a manager to give or withhold

tangible and intangible rewards

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Power: The Key to Leadership

3. Coercive Power– The ability of a manager to punish others

4. Expert Power– Power that is based on special knowledge, skills,

and expertise that a leader possesses

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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.

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Empowerment: An Ingredient in Modern Management

• Empowerment– The process of giving workers at all levels more

authority to make decisions and the responsibility for their outcomes

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Empowerment: An Ingredient in Modern Management

Empowerment:• 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

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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.

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The Behavior Model

• Behavior Model– Identifies the two basic types of behavior that

many leaders engaged in to influence their subordinates

1. Consideration: Respect2. Initiating Structure: Organizing

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The Behavior Model

• Consideration– Behavior indicating

that a manager trusts, respectsand 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

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Contingency Models of Leadership

• Contingency Models– 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

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Contingency Models of Leadership

• Fiedler’s Model– Personal characteristics can influence leader

effectiveness – Leader style is the manager’s characteristic

approach to leadership

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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

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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

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Fiedler’s Model

• Task structure– 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

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Fiedler’s Contingency Theory of Leadership

Figure 10.2 10-23

House’s Path-Goal Theory

A contingency model of leadership proposing the effective leaders can motivate subordinates by:1.Identifying (clearly) the outcomes workers are

trying to obtain from their jobs.2.Rewarding workers for high-performance and goal

attainment with the outcomes they desire3.Clarifying the paths to the attainment of the goals,

remove obstacles to performance, and express confidence in worker’s ability.

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House’s Path-Goal Theory

1. Directive behaviors– Set goals, assign

tasks, show how to do things

2. Supportive behaviors– Looking out for the

worker’s best interests

3. Participative behaviors– Give subordinates a

say in matters that affect them

4. Achievement-oriented behaviors– Setting challenging

goals and believing in worker’s abilities

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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

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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

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Being a Charismatic Leader

• 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

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Transactional Leadership

• Transactional Leaders– Leaders that motivate subordinates by rewarding

them for high performance and reprimanding them for low performance

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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.

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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?”

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Emotional Intelligence and Leadership

• Emotional Intelligence– Helps leaders develop a vision for their firm– Helps motivate subordinates to commit to

the vision– Energizes subordinates to work to achieve

the vision

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