Ch

apte

r

11

Ch

apte

r

1414

LeadershipLeadership

14-2© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

OverviewOverview

What effective leadership is and the sources of power that enable managers to be effective leaders.

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.

14-3© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

The Nature of LeadershipThe Nature of Leadership

Leadership Exact definition is difficult because it can be

relative. Methods and manners can vary with circumstances and culture (both national and corporate). The situation can define the style that will succeed and context evolves (e.g., the rise of team structure and its effect on leadership style).

Using position, power, personality and persuasion to inspire, motivate and direct others to achieve group goals.

“Whatever makes others follow.”

14-4© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

The Nature of LeadershipThe Nature of Leadership

Personal Leadership Style The specific ways managers choose to

influence others reflects their personality and management style.

Managers at all levels need

to consciously develop

an effective leadership

style.

14-5© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Leadership Across CulturesLeadership 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 and stress

process control while U.S managers focus more directly on performance and goal-achievement.

Time horizons (short versus long) also are affected by cultures.

But be careful about assuming cultural influence because experience in other cultures can change people.

14-6© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Power: The Key to LeadershipPower: The Key to Leadership

Legitimate Power The authority managers have by virtue of their

position in the firm (hiring and firing)Reward Power

A manager’s ability to give or withhold tangible and intangible rewards (pay raises, at-a-girls) that signal employees they are doing a good/bad job.

14-7© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Power: The Key to LeadershipPower: The Key to Leadership

Coercive Power A manager’s ability to punish others.

Examples: verbal reprimand, pay cuts, dismissal Limited effectiveness; can have negative side effects.

Expert Power Power based on special knowledge, skills, and

expertise. First-line and middle managers have the most expert

power; most often consists of technical ability.

14-8© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Power: The Key to LeadershipPower: The Key to Leadership

Referent Power Power and loyalty that comes from

subordinates’ and coworkers’ respect and admiration for a leader’s capability and personal characteristics

Usually gained by likable managers concerned about their workers as well as getting the job done properly

The most effective form of leadership

14-9© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Empowerment: An Ingredient in Modern Management

Empowerment: An Ingredient in Modern Management

Empowerment The process of giving workers at all levels

more knowledge and authority to make decisions and to take responsibility for their outcomes.

14-10© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Empowerment: An Ingredient in Modern Management

Empowerment: An Ingredient in Modern Management

Empowerment: Involves workers in decisions. Increases worker commitment and motivation. Frees managers to focus on other issues by delegating

responsibility. Usually delivers better results.

14-11© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Leadership ModelsLeadership Models

Trait Model Attempts to identify personal characteristics

that cause effective leadership.Research shows that certain personal

characteristics appear to be connected to effective leadership.

Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of them.

14-12© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Leadership ModelsLeadership Models

Behavioral ModelConsideration: 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 (example: forming a team)

Both behaviors are independent and managers can be high or low on either.

14-13© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Contingency Models of Leadership Contingency Models of Leadership

Fiedler’s Model Effective leadership is contingent on both the

characteristics of the leader and of the situation. Leader style is the enduring, characteristic

approach to leadership that a manager uses and does not readily change. 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 so the job gets done.

14-14© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Fiedler’s Model 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. Task structure—the extent to which workers’ tasks

are clear-cut; clear issues make a situation favorable for leadership.

Position Power—the amount of legitimate, reward, and coercive power leaders have due to their position. When positional power is strong, leading is easier.

14-15© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Fiedler’s Model in ApplicationFiedler’s Model in Application

Combines considerations of leader-member relations, task structure, and position power to identify leadership situations. Identifies situations where given types of

managers might perform best. Leadership style is a characteristic most managers

cannot change; managers will be most effective when placed in situations that suit their leadership style or that can be changed to suit their style.

14-16© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

House’s Path-Goal TheoryHouse’s Path-Goal Theory

A contingency model of leadership proposing that effective leaders can motivate subordinates by:

1. Clearly identifying the outcomes workers are trying to obtain from their jobs.

2. Rewarding workers with their desired outcomes in return for high performance and goal attainment

3. Clarifying the paths to goal attainment, removing obstacles, and expressing confidence in workers’ ability.

14-17© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Motivating with Path-GoalMotivating with Path-Goal

Path-Goal identifies four leadership behaviors:1. Directive behaviors: set goals, assign tasks,

show how to do things.2. Supportive behavior: look out for the worker’s

best interest.3. Participative behavior: give subordinates a say in

matters that affect them.4. Achievement-oriented behavior: setting

challenging goals and believing in worker’s abilities.

Which to use depends on the nature of thesubordinates and the task.

14-18© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

The Leader Substitutes ModelThe Leader Substitutes Model

Leadership Substitute Acts in place of a leader, making leadership

unnecessary. Possible substitutes can be found in skilled, motivated subordinates or the extent to which work is interesting and fun.

Worker empowerment or self-managed work teams reduce leadership needs.

Managers should be aware that they do not always need to exert direct influence over workers. (DON’T MICRO-MANAGE). A good leader is always trying to work himself out of leadership and his people into it.

14-19© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Transformational LeadershipTransformational Leadership

Leadership that: Makes subordinates aware of the importance of

their jobs and performance to the organization by providing feedback.

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.

INSPIRES WORKERS TO ACHIEVE MORE THAN THEY THINK THEY CAN.

14-20© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Being a Charismatic LeaderBeing a Charismatic Leader

Charismatic Leader An enthusiastic, self-confident transformational

leader able to paint a vision of how good things could be by: Clearly communicating excitement to subordinates. Openly sharing information so that everyone is aware of

problems and the need for change. Empowering workers to help with solutions. Developing employees by helping them build skills.

14-21© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Transactional LeadershipTransactional Leadership

Transactional Leaders Use their reward and coercive powers to

exchange rewards for performance and punish failure.

Push subordinates to change, but do not seem to change themselves.

Do not have the “vision” of a transformational leader.

Can be effective, but not the best way.

14-22© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Developmental ConsiderationDevelopmental Consideration

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

“Follow me and you will have anopportunity to growwith the company.”

14-23© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Gender and LeadershipGender and Leadership

The number of top-level women managers is rising but still relatively low Stereotypes (and some recent research) suggest

women are more supportive and concerned with interpersonal relations while men are more task-focused. Women may be perceived as more participative than men

because they adopt a participative approach to overcome resistance to them as managers.

ALTHOUGH STYLE MAY BE SOMEWHAT GENDER-RELATED, LEADERSHIP ITSELF IS NOT! SOME OF MY MOST EFFECTIVE LEADERS WERE WOMEN.