DISCUSSION MAN2021

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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.

2. 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.

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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.

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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.

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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.

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Types of Managerial Power Figure 10.1

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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.

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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.

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Power: The Key to Leadership 3

Referent Power:

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

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Topics for Discussion 1

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

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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.

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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.

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The Behavior Model 1

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

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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.

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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]

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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 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.

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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]

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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.

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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.

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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.

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Fiedler’s Contingency Theory of Leadership

Figure 10.2

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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.

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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.

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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.

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Topics for Discussion 4

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

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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.

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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.

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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.

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Transactional Leadership

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

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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.

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Topics for Discussion 5

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

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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.

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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.

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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.

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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.

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

Male and female tend to be equally effective leaders.

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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.

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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.

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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]

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