MAN2021 DISCUSSION

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CHAPTER 10

Leaders and Leadership

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Learning Objectives

1. 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 behavioral models of leadership.

3. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.

4. Describe what transformational leadership is and explain how managers can engage in it.

5. Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness.

1. 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 behavioral models of leadership.

3. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.

4. Describe what transformational leadership is and explain how managers can engage in it.

5. Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness.

The Nature of Leadership 2

Leader:

An individual who exerts influence over other people to help achieve group or organizational goals.

Leadership:

The process by which a person (the leader) exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals.

An ineffective leader’s influence can detract from achieving a company’s goals.

The Nature of Leadership 3

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.

The text uses the example of Michael Kraus, owner and manager of a dry-cleaning store in the northeastern United States, to describe a hands-on approach to leadership.

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.

Japanese managers are group-oriented.

U.S managers focus more on short-term profitability.

Time horizons also are affected by cultures.

Time horizon differences: The United States focuses on short-term profit orientation unlike in Japan where their leadership styles emphasize long-term performance.

Types of Managerial Power

Figure 10.1

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.

Reward Power:

The ability of a manager to give or withhold tangible and intangible rewards.

The text uses the example of Carol Loray to describe legitimate power. Reward power is common in sales departments where commissions are disbursed based on sales or quality of customer service.

Power: The Key to Leadership 2

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 includes frequent verbal criticisms, personal attacks, and manipulation. The text uses the example of William J. Fife who was fired from Giddings and Lewis Inc. for this type of behavior.

Power: The Key to Leadership 3

Referent Power:

Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty.

When a manager is revered, respected, or produces a feeling of affection from subordinates, it is more likely employees will be motivated. The text gives the example of Sally Carruthers and her ability to project a warm and caring nature, making each of her subordinates feel special.

Topics for Discussion 1

Describe the steps managers can take to increase their power and ability to be effective leaders. [LO 10-1]

A manager should ensure that he or she has sufficient levels of power. For example, in order to use their legitimate power they must be given the authority or necessary responsibilities within the organization. The other sources of power that help a manager to be an effective leader include reward power, coercive power, expert power, and referent power. A manager needs to use the power that he or she has in beneficial ways and not abuse it. For example, when using reward power, managers need to give or withhold tangible and intangible rewards to their subordinates. When using coercive power, they need to punish employees when necessary. This would include verbal reprimands, reductions in pay or working hours, or actual dismissal. When using their expert power, managers must show that they have gained significant knowledge from their experience. And to maintain or increase referent power, a manager should behave in ways that encourage respect, admiration and loyalty from subordinates and coworkers.

Empowerment: An Ingredient in Modern Management

Empowerment gives employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs.

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.

Trait and Behavior Models of Leadership

Trait Model:

This model focuses 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.

Traits including energetic, charismatic, confident, having integrity, high intellect, honest, etc.

Research shows that certain personal characteristics do appear to be connected to effective leadership.

The Behavior Model 1

Identifies the two basic types of behavior that many leaders engage in to influence their subordinates: consideration and initiating structure.

Ohio State University studies (1940s and 1950s).

The Behavior Model 2

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.

The text uses the example of Michael Teckel, a manager of an upscale shoe store, to describe consideration behavior and an initiating structure.

Topics for Discussion 2

Think of specific situations in which it might be especially important for a manager to engage in consideration and initiating structure. [LO 10-2]

Leaders engage in consideration when they show their subordinates that they trust, respect, and care about them. A manager is performing consideration behaviors when he or she takes steps that will benefit the well-being of his or her subordinates. It is always important for managers to show their subordinates respect, an example of consideration behavior. Due to the increasing importance of customer service, organizations are beginning to realize that if they are considerate and respectful to their employees, their employees in turn will be considerate and respectful to their customers.

Leaders engage in initiating structure when they take steps to make sure that the work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective. Delegating responsibilities is an example of initiating structure. When a manager assigns projects to subordinates or schedules their working hours and break times, he or she is initiating structure in the organization.

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 or she does, and the situation in which leadership takes place.

Fiedler’s Model:

Personal characteristics can influence leader effectiveness.

Leader style is the manager’s characteristic approach to leadership.

Fred E. Fiedler—1960s:

A manager might be effective in one situation and ineffective in another. This model helps explain why that might be.

Topics for Discussion 3

Discuss why managers might want to change the behaviors they engage in, given their situation, their subordinates, and the nature of the work being done. Do you think managers are able to readily change their leadership behaviors? Why or why not? [LO 10-3]

Because different types of leading behaviors work best in different situations, the manager must understand of the nature of the situation. Subordinates are people with varied personalities, and people respond differently to different leadership behaviors and styles. A manager must also be cognizant of the different types of tasks performed by his or her subordinates. Some leadership behaviors are more appropriate for certain tasks more so than for others. It is very important for managers to develop a way for determining what kinds of leader behaviors are likely to work in different situations in order to be effective and efficient managers.

Contingency Models of Leadership 3

Relationship-Oriented Leaders:

Leaders whose primary concern is to develop good relations with their subordinates and to be liked by them.

Task-Oriented Leaders:

Leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment.

Fiedler’s Model 1

Leader–Member Relations:

The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading.

Task Structure:

The extent to which work is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it.

The text uses the example of Geraldine Laybourne of Nickelodeon to discuss task structure. Being in an industry that is in flux (children’s tastes) or is creative in its nature, might prove to have low task structure.

Fiedler’s Model 2

Position Power:

The amount of legitimate, reward, and coercive power leaders have by virtue of their position.

Leadership situations more favorable for leading when position power is strong.

Research suggests that Fiedler’s model needs some modifications. What does the LPC scale really measure? Is it true that leaders cannot alter their styles?

Fiedler’s Contingency Theory of Leadership

Figure 10.2

Access the text alternative for slide image.

House’s Path-Goal Theory 1

Path-Goal Theory states that effective leaders motivate subordinates to achieve goals by:

Clearly identifying the outcomes that subordinates are trying to obtain.

Rewarding workers with these outcomes for high-performance and goal attainment.

Clarifying the paths to the attainment of the goals.

This theory is contingent upon the nature of subordinates and the nature of their work.

House’s Path-Goal Theory 2

Directive Behaviors:

Setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance.

Supportive Behavior:

Expressing concern for subordinates and looking out for their best interests.

Directive behaviors:

Beneficial when employees having difficulty completing assigned tasks.

Detrimental if employees are independent or creative.

Supportive behaviors:

Beneficial when high levels of stress are present.

House’s Path-Goal Theory 3

Participative Behavior:

Giving subordinates a say in matters that affect them.

Achievement-Oriented Behavior:

Setting very challenging goals, believing in workers’ abilities.

Stockbyte/Getty Images

Participative behaviors:

Beneficial when subordinates’ support of a decision is required.

Achievement-oriented behaviors:

Beneficial when motivation is needed to spur subordinates with challenges.

Detrimental if subordinates are already pushed to their limit.

Topics for Discussion 4

Discuss why substitutes for leadership can contribute to organizational effectiveness. [LO 10-3]

A leadership substitute is something that acts in place of the influence of a leader and makes leadership unnecessary. An organization may be fortunate to have extremely motivated employees who are able to perform the majority of their responsibilities without guidance from their managers. If employees are not in need of constant leadership then those who usually perform these functions are then able to spend their time doing other things required to increase the effectiveness of the organization.

The Leader Substitutes Model 1

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. A high degree of self-direction on the part of the subordinate is required.

It is possible for some employees to perform at high levels without the influence of a manager.

The Leader Substitutes Model 2

Possible substitutes can be found in:

Characteristics of the subordinates:

Skills, experience, motivation.

Characteristics of context:

The extent to which work is interesting and fun.

At times it might be necessary for a manager to have the time and space to work on new developments or processes to increase efficiency and effectiveness. Substitutes for leadership would be beneficial in these circumstances.

Transformational Leadership

Makes subordinates aware of the importance of their jobs and performance to the organization.

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.

The text uses the example of Sue Nokes of T-Mobile as a transformation leader. Nokes dramatically turned around sales and customer service for T-Mobile.

Transactional Leadership

Transactional leaders motivate subordinates by rewarding them for high performance and reprimanding them for low performance.

Often transformational leaders and transactional leadership are closely linked. While envisioning a better future, a transformational leader will reward employees for good performance, as well as responding to substandard work.

Servant Leadership

Servant Leader:

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.

The text uses the example of Robert Greenleaf, who founded a nonprofit organization called the Greenleaf Center for Servant Leadership.

Topics for Discussion 5

Describe what transformational leadership is and explain how managers can engage in it. [LO 10-4]

Transformational leadership occurs when a manager has an extremely dramatic effect on his or her subordinates and/or organizations. Transformational leadership occurs when managers change, or transform, their subordinates in three important ways:

The manager makes subordinates aware of how important their jobs are for the organization and how important it is that they perform them as best as they can, so that the organization can obtain its goals.

The manager makes their subordinates aware of the subordinates’ own needs for personal growth, development, and accomplishment.

The manager motivates their subordinates to work for the good of the organization, not just for their own personal gain or benefit.

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.

A charismatic leader is able to see beyond the usual and envision a better future. The process to achieve this future might include dramatic changes in an organization’s structure, culture, strategy, decision making, and other critical processes and factors.

Stimulating Employees Intellectually

Intellectual Stimulation:

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

Transformational managers can help subordinates see things differently by supplying them with the needed information that helps them focus on the problem and the need for change.

Engaging in Developmental Consideration

Developmental Consideration:

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

The text uses the example of Nokes at T-Mobile, relating how she was able to inspire employees to make desired changes to propel their departments to success.

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.

Men are stereotypically viewed as being directive and focused on task accomplishment.

Male and female tend to be equally effective leaders.

nd3000/Shutterstock

There is no difference between men and women when it comes to effectiveness in leading.

Women tend to be more participative than men and have better interpersonal skills.

Emotional Intelligence and Leadership 1

The Moods of Leaders:

Groups whose leaders experienced positive moods had better coordination.

Groups whose leaders experienced negative moods exerted more effort.

If the manager at your local Wendy’s has a positive mood, it is likely that the experience you have with the person at the counter will also be pleasant.

Emotional Intelligence and Leadership 2

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.

High emotional intelligence:

An understanding of emotions involved in creative actions.

Ability to awaken and support subordinates.

Able to foster a flourishing creativity.

Topics for Discussion 6

Imagine that, upon graduation, you are working in an organization in an entry-level position and have come up with what you think is a great idea for improving a critical process in the organization that relates to your job. In what ways might your supervisor encourage you to implement your idea? How might your supervisor discourage you from even sharing your idea with others? [LO 10-4, 10-5]

Effectively managing workers with creative ideas is quite challenging for some leaders. A supportive, uncritical leadership style that offers positive feedback will encourage a creative worker to implement his or her idea. Too much initiating structure often inhibits creativity and has the opposite effect.

BE THE MANAGER

What are you going to do to improve the performance and effectiveness of your company?

The manager could adapt the transformational leadership approach. The managers should make the subordinates aware of how important their jobs are for the organization and how necessary it is for them to perform those jobs as best they can so the organization can attain its goals. Transformational managers make their subordinates aware of the subordinates’ own needs for personal growth, development, and accomplishment. Transformational managers motivate their subordinates to work for the good of the organization as a whole, not just for their own personal gain or benefit.

As a manager one should not sit on the sidelines; it appears that nothing will change. The current leadership strength has been in the area of initiating structure, demonstrated by the implementation of the new action plans. But now, the manager must focus on transforming his subordinates. He can also work on engaging in developmental consideration by going out of his way to support and encourage subordinates and giving them opportunities to enhance their skills and grow and excel on the job.

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Appendix: Image Descriptions for Unsighted Students

Fiedler’s Contingency Theory of Leadership, Text Alternative

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The graphic displays Fiedler's Contingency Theory of Leadership by dividing it into leader-member relations, task structure, and position power. The graphic measures these categories to determine favorable or unfavorable situations for relationship-oriented leaders and task-oriented leaders. Relationship-oriented leaders are most effective in moderately favorable situations for leading. For example, good leader-member relations have a high task structure and a strong position power. Very unfavorable situations have poor leader-member relations, low task structure, and a weak position power.

Return to slide containing image.