MANAGEMENT ASSIGNMENT

SUMMARY OF CHAPTER 14
(Power, Influence, and Leadership)

Arranged By :
A. A. Ayu Mas Radha Rani Dewi
(1807521063)

FACULTY OF ECONOMICS AND BUSINESS

UDAYANA UNIVERSITY
2018
A. THE NATURE OF LEADERSHIP: WIELDING INFLUENCE
Leadership is the ability to influence employees to voluntarily pursue
organizational goals.

1. Managers & Leaders

Managers:
 Do planning, organizing, directing, and control
 Implement company’s vision and strategic plan
Leaders:
 Inspire, encourage, and rally others to achieve great goals
 Create and articulate that vision and plan

2. Managerial Leadership
Managerial leadership is the process of influencing others to understand and
agree about what needs to be done and the process of facilitating individual and
collective efforts to accomplish shared objectives. The “influencing” part is
leadership and the “facilitating” part is management.

3. Coping With Complexity Versus Coping With Change

a. Being a Manager: Coping with Complexity
According to Kotter, companies manage complexity in three ways:
 Determining what needs to be done – planning and budgeting
 Creating arrangement of people to accomplish an agenda – organizing and
staffing
 Ensuring people do their jobs – controlling and problem solving

b. Being a Leader: Coping with Change

Leadership copes with change in three ways:
 Determining what needs to be done – setting a direction
 Creating arrangements of people to accomplish an agenda – aligning
people
 Ensuring people do their jobs – motivating and inspiring

4. Five Sources Of Power

Authority is the right to perform or command; it comes with the jobs. Power is
the extent to which a person is able to influence others so they respond to orders.
 Personalized power is a power directed at helping oneself
 Socialized power is a power directed at helping others
Five sources of power leaders may draw on within organization:
a. Legitimate Power
A power in which all managers have, resulting from manager’s formal
positions within the organization
b. Reward Power
A power in which all managers have, resulting from managers’ authority to
reward their subordinates
c. Coercive Power
A power in which all managers have, resulting from managers’ authority to
punish their subordinates
 d. Expert Power
Power resulting from one’s specialized information or expertise
e. Referent Power
Power deriving from one’s personal attraction

5. Leadership & Influence

Nine tactics to influence others:
a. Rational Persuasion
Trying to convince someone by using reason, logics, or facts
b. Inspirational Appeals
Trying to build enthusiasm or confidence by appealing to others emotions,
ideals, or values
c. Consultation
Getting others to participate in a decision or change
d. Ingratiating Tactics
Acting humble or friendly or making someone feel good or feel important
before making a request
e. Personal Appeals
Referring to friendship and loyalty while making a request
f. Exchange Tactics
Reminding someone of past favors or offering to trade favors
g. Coalition Tactics
Getting others to support your effort to persuade someone
h. Pressure Tactics
Using demands, threats, or intimidation to gain compliance
i. Legitimating Tactics
Basing a request on one’s authority or right, organizational rules or policies,
or express or implied support from superiors

6. Five Approaches To Leadership

a. Trait Approaches
b. Behavioral Approach
c. Situational Approach
d. Transformational Leadership Approach
e. Three Additional Perspective (leader, e-leadership, followers)

B. TRAIT APPROACHES
Trait Approaches to Leadership attempt to identify distinctive characteristics that
account for the effectiveness of leaders

1. “Dark Side” Traits

a. Narcissism
Defined as having “a self-centered perspective, feelings of superiority, and a
drive for personal power and glory”
b. Machiavellianism
Displays a cynical view of human nature and condones opportunistic and
unethical ways of manipulating people, putting results over principles.
c. Psychopathy
Characterized by lack of concern for others, impulsive behavior, and a
dearth of remorse when the psychopath’s actions harm others.
 2. Desirable Traits In Which Woman Excel
 Women were found to be better at teamwork and partnering, and better at
producing quality works
 Women have been found to display more social leadership
 Women executives, when rated by their peers, managers, and direct reports
scored higher than their male counterparts

3. The Lack of Women at The Top

Why there aren’t more women in positions of leadership
 Unwillingness to compete or sacrifice
 Modesty
 Lack of mentor
 Starting out lower, and more likely to quit
C. BEHAVIORAL APPROACHES
Behavioral Leadership Approach which attempt to determine the unique behaviors
displayed by effective leaders

1. Task-Oriented Leader Behavior

The purpose of this approach is to ensure that people, equipment, and other
resources are used in an efficient way to accomplish the mission of a group or
organization.
 Initiating-Structure Leadership
Leader behavior that organizes and defines—that is, “initiates the
structure for”—what employees should be doing to maximize output
 Transactional Leadership
Focusing on clarifying employees’ roles and task requirements and
providing rewards and punishments contingent on performance

2. Relationship-Oriented Leader Behavior

Relationship-oriented leadership Primarily concerned with the leader’s
interactions with his or her people.
 Consideration
Leader behavior that is concerned with group members’ needs and
desires and that is directed at creating mutual respect or trust.
 Empowering leadership
Represents the extent to which a leader creates perceptions of
psychological empowerment in others.
a. Leading for meaningfulness: inspiring and modeling desirable
behaviors
b. Leading for self-determination: delegating meaningful tasks
c. Leading for competence: supporting and coaching employees
 Servant leadership
Focuses on providing increased service to others—meeting the goals of
both followers and the organization—rather than to oneself.

3. Passive Leadership
Passive leadership is form of leadership behavior characterized by a lack of
 leadership skills. Another type of passive type is laissez-faire leadership which
is a form of “leadership” characterized by general failure to take responsibility
for leading.

D. SITUATIONAL APPROACHES
Situational Approach (or contingency approach) to leadership, who believe that
effective leadership behavior depends on the situation at hand. Relationship-Oriented
Leader Behavior

1. Contingency Leadership Model

Determines if a leader's style is task oriented or relationship oriented and if that
style is effective for the situation at hand.

The Three Dimensions of Situational Control

a. Leader-member relations – “Do my subordinates accept me as a
leader?”
Reflects the extent to which a leader has or doesn’t have the support,
loyalty, and trust of the work group
b. Task structure – “Do my subordinates perform unambiguous easily
understood tasks?”
Refers to the extent to which task are routine, unambiguous, and easily
understood
c. Position power – “Do I have power to reward and punish?”
Refers to how much power a leader has to make work assignments and
reward and punish.

2. Path-Goal Leadership Model

Which holds that effective leader makes available to followers desirable
rewards in the workplace and increases their motivation by clarifying the paths
or behavior that will help them achieve those goals and providing them with
support
a. Consideration
Leader behavior that is concerned with group members’ needs and
desires and that is directed at creating mutual respect or trust.
b. Empowering leadership
Represents the extent to which a leader creates perceptions of
psychological empowerment in others.
 Leading for meaningfulness: inspiring and modeling desirable
behaviors
 Leading for self-determination: delegating meaningful tasks
 Leading for competence: supporting and coaching employees
c. Servant leadership
Focuses on providing increased service to others—meeting

What Determines Leadership Effectiveness

 Employee characteristics
 Environment factors
 Leader behaviors

Eight Leadership Styles of the Revised Path Goal Theory

 a. Path-goal clarifying
b. Achievement oriented
c. Work facilitation
d. Supportive
e. Interaction facilitation
f. Group-oriented decision making
g. Representative and networking
h. Value-based

Three Important Implication for Managers

 Use more leadership style
 Help employee achieve their goals

E. THE USES OF TRANSFORMATIONAL LEADERSHIP

According to Bernard Bass and Bruce Avolio, full range leadership suggests that
leadership behavior varies along a full range of leadership styles, from passive
leadership, through transactional leadership, to transformational leadership.

1. Transformational Leaders
Transformational leadership transforms employees to pursue organizational
goals over self-interests. These are influenced by two factors:
 Individual characteristics
The personalities of such leaders tend to be more extroverted,
agreeable, proactive, and open to change than transformational leaders.
 Organizational culture
Adaptive, flexible organizational cultures are more likely than are rigid,
bureaucratic cultures to foster transformational leadership.

2. Four Key Behavior of Transformational Leaders

a. Inspirational Motivation
Transformational leaders have charisma, a form of interpersonal
attraction that inspires acceptance and support
b. Idealized Influence
Transformational leaders are able to inspire trust in their followers
because they express their integrity by being consistent, single-minded,
and persistent in pursuit the goal.
c. Individualized Consideration
Transformational leaders don’t just express concern for subordinates’
well-being. They actively encourage them to grow and to excel by
giving them challenging work, more responsibility, empowerment, and
one-on-one mentoring.
d. Intellectual Stimulation
These leaders are gifted at communicating the organization’s strengths,
weakness, opportunities, and threats so that subordinates develop a new
sense of purpose.

3. Implications of Transformational Leadership for Managers

a. It can improve results for both individuals & groups
b. It can be used to train employees at any level
 c. It requires ethical leaders

F. THREE ADDITIONAL PERSPECTIVES

1. Leader-Member Exchange Leadership

Leader-Member Exchange Leadership emphasizes that leaders have different
sorts of relationships with different subordinates

In-Group Exchange versus Out-Group Exchange

 In-group exchange: trust and respect
 Out-group exchange: lack of trust and respect

2. E-Leadership
E-leadership can involve one to one, one to many, within-group and between-
group, and collective interactions via information technology

3. Followers
What Do Followers Want in Their Leaders?
 Significance
 Community
 Excitement

What Do Leaders Want in Their Followers?

Followers that are productive, reliable, honest, cooperative, proactive, and
flexible