Integrative Case Study
Chapter Fourteen
Leadership
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
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.
Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.
Describe what transformational leadership is, and explain how managers can engage in it.
Characterize the relationship between gender leadership.
The Nature of Leadership
Leadership
The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals.
Question?
What is an individual who is able to exert
influence over other people to help achieve
group or organizational goals?
Manager
Leader
Chief
Organizer
The correct answer is “B” – leader. See next slide
The Nature of Leadership
Leader
An individual who is able to exert influence over other people to help achieve group or organizational goals
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 principal tasks of management.
The challenge is for managers at all levels to develop an effective personal management style.
Leadership Across 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.
Sources of Managerial Power
Figure 14.1
Power: The Key to Leadership
Legitimate Power
The authority that a manager has by virtue of his or her position in the firm.
Reward Power
The ability of a manager to give or withhold tangible and intangible rewards.
Power: The Key to Leadership
Coercive Power
The ability of a manager to punish others
Limited in effectiveness and application; can have serious negative side effects
Examples: verbal reprimand, pay cuts, and dismissal
Power: The Key to Leadership
Expert Power
Power that is based on special knowledge, skills, and expertise that the leader possesses.
Tends to be used in a guiding or coaching manner
Power: The Key to Leadership
Referent Power
Power that comes from subordinates’ and coworkers’ respect , admiration, and loyalty
Possessed by managers who are likable and whom subordinates wish to use as a role model
Empowerment: An Ingredient in Modern Management
Empowerment
The process of giving employees at all levels in the organization the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs
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.
Leadership Models
Behavioral Model
Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates
Consideration, initiating structure
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
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 a manager’s characteristic approach to leadership
Contingency Models of Leadership
Fiedler’s Model
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.
Fiedler’s Model
Situation Characteristics
Leader-member relations – extent to which staff like, trust, and are loyal to their leader
Task structure – extent to which the work to be performed is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it
Fiedler’s Model
Situation Characteristics
Position Power - the amount of legitimate, reward, and coercive power leaders have due to their position. When positional power is strong, leadership opportunity becomes more favorable.
Fiedler’s Contingency Theory of Leadership
Figure 14.2
House’s Path-Goal Theory
A contingency model of leadership proposing that
effective leaders can motivate subordinates to
achieve goals by:
Clearly identifying the outcomes that subordinates are trying to obtain from their jobs.
Rewarding subordinates with these outcomes for high-performance and attainment of work goals
Clarifying the paths leading to the attainment of work goals
Question?
Which leadership behavior gives
subordinates a say in matters that affect
them?
Directive behavior
Supportive behavior
Participative behavior
Achievement-oriented behavior
The correct answer is “C” – participative behavior. See slide 14-25
Path-Goal Leadership Behaviors
Directive behaviors
set goals, assign tasks, show how to do things.
Supportive behavior
look out for the worker’s best interest.
Path-Goal Leadership Behaviors
Participative behavior
give subordinates a say in matters that affect them.
Achievement-oriented behavior
Setting very challenging goals, believing in worker’s abilities.
Discussion Question
Which leadership model is the most
effective?
Trait model
Behavior model
Fiedler’s model
Path-goal theory
There is no one best answer. Students should be able to discuss the differences and appropriateness of the different models.
The Leader Substitutes Model
Leadership Substitute
Acts in the place of a leader and makes leadership unnecessary.
Staff of an organization sometimes can perform highly without a manager exerting influence over them
The Leader Substitutes Model
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.
Transformational Leadership
Leadership that:
Makes subordinates aware of the importance of their jobs are for the organization and how necessary it is for them to perform those jobs as best they can so that the organization can attain its goals
Transformational Leadership
Makes subordinates aware of their own needs for personal growth, development, and accomplishment
Motivates workers 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 able to clearly communicate his vision of how good things could be
Being a Charismatic Leader
Charismatic Leader
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.
Intellectual Stimulation
Intellectual Stimulation
Manager leads subordinates to view problems as challenges that they can and will meet and conquer
Manager engages and empowers subordinates to take personal responsibility for helping to solve problems
Developmental Consideration
Developmental Consideration
Manager supports and encourages subordinates, giving them opportunities to enhance their skills and capabilities and to grow and excel on the job
Transactional Leadership
Transactional Leaders
Use their reward and coercive powers to encourage high performance—they exchange rewards for performance and punish failure.
Push subordinates to change but do not seem to change themselves.
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.
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
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.