chapter fourteen

Leadership

McGraw-Hill/Irwin
Contemporary Management, 5/e

Copyright 2008 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.

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Learning Objectives
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.

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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.

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Question?
What is an individual who is able to exert
influence over other people to help
achieve group or organizational goals?
A. Manager
B. Leader
C. Chief
D. Organizer

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The Nature of Leadership

Leader
An individual who is able to exert influence
over other people to help achieve group or
organizational goals

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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.

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The Nature of Leadership

Distinction between managers and leaders
Managers establish and implement
procedures to ensure smooth functioning
Leaders look to the future and chart the
course for the organization

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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 14.1
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Power: The Key to Leadership

Legitimate Power
The authority that a manager has by virtue
of his or her position in the firm.

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Power: The Key to Leadership

Reward Power
The ability of a manager to give or withhold
tangible and intangible rewards.
Effective managers use reward power to
signal to employees that they are doing a
good job.

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Power: The Key to Leadership

Coercive Power
The ability of a manager to punish others.
Examples: verbal reprimand, pay cuts,
and dismissal
Limited in effectiveness and application;
can have serious negative side effects.

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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

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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

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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

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Empowerment: An Ingredient in
Modern Management
Empowerment increases a managers
ability to get things done
Empowerment increases workers
involvement, motivation, and commitment
Empowerment gives managers more time
to concentrate on their pressing concerns

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Leadership Models
Trait Model
Attempt to identify personal characteristics
that cause for effective leadership.
Research shows that certain personal
characteristics do 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 these traits.
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Leadership Models
Behavioral Model
Identifies the two basic types of behavior
that many leaders engaged in to influence
their subordinates

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Leadership Models
Behavioral Model
Consideration: leaders show subordinates they
trust, respect, and care about them
Managers look out for the well-being of their
subordinates
Do what they can to help subordinates feel
good and enjoy the work they perform

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Leadership Models
Behavioral Model
Initiating structure: leaders take steps to
make sure that work gets done,
subordinates perform their work acceptably,
and the organization is efficient and
effective
Managers assign tasks to groups and let
subordinates know what is expected of
them
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Contingency Models of Leadership

Contingency Models
What makes a manager an effective leader
in one situation is not necessarily what that
manager needs to be equally effective in
another situation

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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

Fiedlers 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.

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Contingency Models of Leadership

Fiedlers 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.

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Fiedlers Model
Situation Characteristics
Leader-member relations extent to which
followers like, trust, and are loyal to their
leader
Task structure extent to which the work to
be performed is clear-cut so that a leaders
subordinates know what needs to be
accomplished and how to go about doing it

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Fiedlers 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.

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Fiedlers Contingency Theory of

Leadership

Figure 14.2

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Houses Path-Goal Theory

A contingency model of leadership proposing that
effective leaders can motivate subordinates to
achieve goals by:
1. Clearly identifying the outcomes that
subordinates are trying to obtain from their
jobs.
2. Rewarding subordinates with these
outcomes for high-performance and
attainment of work goals
3. Clarifying the paths leading to the attainment
of work goals
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Question?
Which leadership behavior gives
subordinates a say in matters that
affect them?
A. Directive behavior
B. Supportive behavior
C. Participative behavior
D. Achievement-oriented behavior

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Motivating with Path-Goal

Path-Goal identifies four leadership
behaviors:
Directive behaviors: set goals, assign tasks,
show how to do things.
Supportive behavior: look out for the workers
best interest.

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Motivating with Path-Goal

Path-Goal identifies four leadership
behaviors:
Participative behavior: give subordinates a
say in matters that affect them.
Achievement-oriented behavior: Setting
very challenging goals, believing in workers
abilities.

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Motivating with Path-Goal

Which behavior to
be used depends
on the nature of
the subordinates
and the kind of
work they do

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Discussion Question
Which leadership model is the most
effective?
A. Trait model
B. Behavior model
C. Fiedlers model
D. Path-goal theory

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The Leader Substitutes Model

Leadership Substitute
Acts in the place of a leader and makes
leadership unnecessary.
Worker empowerment or self-managed
work teams reduce leadership needs.

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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.

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Transformational Leadership
Leadership that:
1. 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

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Transformational Leadership
2. Makes subordinates aware of their own
needs for personal growth,
development, and accomplishment
3. Motivates workers to work for the good
of the organization, not just for their
own personal gain or benefit

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Being a Charismatic Leader

Charismatic Leader
An enthusiastic, self-confident
transformational leader able to clearly
communicate his vision of how good things
could be

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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.
Empowering workers to help with solutions.
Engaging in the development of employees
by working hard to help them build skills.
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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

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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

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Transactional Leadership
Transactional Leaders
Use their reward and coercive powers to
encourage high performancethey
exchange rewards for performance and
punish failure.
Push subordinates to change but do not
seem to change themselves.

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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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Gender and Leadership

Research indicates that actually there is
no gender-based difference in leadership
effectiveness.
Women are seen to be more
participative than men because they
adopt the participative approach to
overcome subordinate resistance to
them as managers and they have better
interpersonal skills.
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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

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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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Movie Example: The Fugitive

What type of
leader is Gerard?

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