CHAPTER 8: LEADING
There are times when in spite of great
difficulties, jobs are needed to be done,
projects are needed to be finished on time,
and services are needed to be provided.
• Employees in the production line
complaining about delayed resources.
• Workers complain about hard jobs and
tasks.
• Wage hike for workers needed in response
of a calamity.
These are scenarios that require effective
leadership.
Companies that have leadership skill
requirements are:
• Warner-Lambert Philippines
• Shell
• Fuji-Xerox
• Daewoo
What is Leading?
Leading is that management function which
involves influencing others to engage in the
work behaviors necessary to reach
organizational goals.
How Leaders Influence Others?
Engineer Managers are required to perform
leadership roles. Leaders are said to be able
to influence others because of the power they
possess
Power refers to the ability of a leader to exert
force on another.
ENGINEERING MANAGEMENT – CHAPTER 8: LEADING
Bases of Power:
• Legitimate Power
A person who occupies a higher position
has legitimate power over persons in
lower positions within the organization.
• Reward Power
When a person can give rewards to
anybody who follows orders or requests,
he is said to have reward power.
a. Material Rewards- tangible
materials
b. Psychic Rewards- recognition,
praises
• Coercive Power
When a person compels another to
comply with orders through threats or
punishment, he is said to possess coercive
power.
Punishment – demotion, dismissal,
withholding of promotion etc.
• Referent Power
When a person can get compliance from
another because the latter would want to
be identified with the former, that person
is said to have referent power
• Expert Power
Experts provide specialized information
regarding their specific lines of expertise.
This influence, called expert power, is
possessed by people with great skills in
technology.
Nature of Leadership
Leadership may be referred to as:
“The process of influencing and supporting
others to work enthusiastically toward
achieving objectives”
One cannot expect a unit or division to
achieve objectives in the absence of effective
leadership.
Even if a leader Is present, but if he is not
functioning properly, no unit or division
objectives can be expected to be achieved.
Traits of Effective Leaders
1. Personal Drive
Persons with drive are those identified as
willing to accept responsibility, possess
vigor, initiative, persistence, and health.
If a chosen way to reach a goal is not
successful, a leader finds another way to
reach it, even if it precedes a succession of
failed attempts.
Polo Medriatico
Plant director of Polo plant of San Miguel
Corporation between 1992 and 1994.
He was instrumental in radically changing
the problem-riddled Polo plant to a world-
class brewery with modern technology
and a work force with a new attitude.
2. Desire to Lead
Leaders with a desire to lead will always
have a reservoir of extra efforts which can
be used whenever needed.
ENGINEERING MANAGEMENT – CHAPTER 8: LEADING
3. Personal Integrity
Integrity means and includes honesty,
honor, incorruptibility, rectitude,
righteousness, uprightness, and similar
virtues.
4. Self-Confidence
The activities of leaders require moves
that will produce the needed outputs. The
steps of conceptualizing, organizing, and
implementing will be completed if
sustained efforts are made. For the moves
to be continuous and precise, self-
confidence is necessary.
According to Wess Roberts:
“A chieftain cannot win if he loses his
nerve. He should be self-confident and
self-reliant and even if he does not win,
he will know he has done his best.”
5. Analytical Ability
The ability to analyze is one desirable trait
that a leader can use to tide him over many
challenging aspects of leadership.
A leader with sufficient skill to determine
the root cause of the problem may be able
to help the subordinate to improve his
production.
6. Knowledge of the Company, Industry
or Technology
A leader who is well-informed about his
company, the industry where the
company belongs, and the technology
utilized by the industry, will be in a
better position to provide directions to
his unit.
7. Charisma
When a person has a sufficient personal
magnetism that leads people to follow his
directives, this person is said to have
charisma.
When used properly, charisma will help
the leader in achieving his goals.
Persons who Possess Charisma:
✓ Napoleon Bonaparte
✓ Julius Caesar
✓ Adolf Hitler
✓ George Washington
✓ Elvis Presley
8. Creativity
Creativity is the ability to combine
existing data, experience, and
preconditions from various sources in
such a way that the results will be
subjectively regarded as new, valuable,
and innovative, and as a direct solution to
an identified problem situation.
2. Human Skills
✓ Ability of a leader to deal with people,
both inside and outside the
organization.
✓ Good leaders must know how to get
along with people, motivate them, and
inspire them.
✓ Human skills also include coaching,
communicating, morale building,
training and development, help and
supportiveness, and delegating.
3. Conceptual Skills
✓ Ability to think in abstract terms, to
see how parts fit together to form the
whole.
✓ A clear and well-expressed
presentation of what must be done.
Leadership Skills and Their Use at
Various Management Levels

9. Flexibility
People differ in the way they do their
work. One will adapt a different method
from another person's method. A leader
who allows this situation as long as the
required outputs are produced, is said to
be flexible.
Leadership Skills
1. Technical Skills
✓ To understand and make decisions
about work processes, activities, and Behavioral Approaches to Leadership
technology Styles
✓ Specialized knowledge needed to
Leadership Style - a pattern of behavior
perform a job
exhibit by leaders that is unique and
✓ Leader can be more confident in
different from other patterns
performing his functions
✓ To maintain a motivated work force

ENGINEERING MANAGEMENT – CHAPTER 8: LEADING

Approaches used in classifying leadership
styles:
✓ According to the ways leaders
approach people to motivate them.
✓ According to the way the leader uses
power.
✓ According to the leader's orientation
towards task and people.
Ways Leaders Approach Members to
Motivate Them
1. Positive Leadership
Leadership approach emphasizes
rewards.
Rewards may be:
✓ Economic like an increase in monthly
salary
✓ Noneconomic like membership in an
advisory community
2. Negative Leadership
Leader’s approach emphasizes
punishment. The punishment may take
the form of:
✓ Reprimand, suspension, or dismissal
Leaders, sometimes, alternately use positive
and negative leadership depending on the
characteristics of the individual subordinates.
Ways Leaders Using Power
1. Autocratic
This leadership occurs when only the
leader makes all the decisions by
themselves, without consulting their
subordinates.
ENGINEERING MANAGEMENT – CHAPTER 8: LEADING
Advantages:
✓ This leadership is effective in
emergencies.
✓ Some workers need strong directions.
Disadvantages:
✓ Subordinates may feel demotivated.
✓ The leader receives minimal ideas
from their subordinates.
2. Participative
This leadership happens when the leader
openly encourage their people to
cooperate in the decision-making.
Advantages:
✓ Collects huge sum of good ideas.
✓ Subordinates perform well even when
the leader is absent.
✓ Team feels engaged in the process of
making the decision
Disadvantages:
✓ Time consuming.
3. Free-Rein
In this type of leadership, the leader set a
certain objective and lets it subordinate
do whatever they see fit to do the job
efficiently.
Advantages:
✓ Results in optimum utilization of time
and resources.
✓ High level motivation
Disadvantages:
✓ Lacks managerial control.
✓ Difficulty in cooperation.
✓ High degree of risk.
Leader’s Orientation Toward Tasks and 2. Hersey And Blanchard Situational
People Leadership Model
1. Employee Oriented
Maturity has two Components:
When the leader considers employees as
✓ Job skills and knowledge
human being of “Intrinsic importance and
✓ Psychological Maturity
with individual and personal needs” to
satisfy. Development Stage of Subordinates and
Recommended Leadership Style
2. Task Oriented
DEVELOPMENT RECOMMENDED
When the leader places stress on STAGE STYLE
production and the technical aspects of
the job, and the employees are viewed as 1. Low ability + low Style 1 – DIRECTING –
means of getting the work done. willingness Structure, Control, and
supervise.

Contingency Approach to Leadership 2. Low ability + high Style 2 – COACHING –

willingness Direct and Support
Style
An effort to determine through research 3. High ability + low Style 3 – SUPPORTING –
willingness Praise, Listen, and Facilitate
which managerial practices and techniques
are appropriate in specific situations.
4. High ability + High Style 4 – DELEGATING –
willingness Turn over responsibility for
1. Fiedler Contingency Model
day-to-day decision-making
Leadership is effective when the leader
style is appropriate to the situation

Three Principal Factors: 3. Path-Goal Model of Leadership

✓ The relations between leaders and Leadership can be made effective
followers. because leaders can influence
✓ The structure of the task subordinate’s perceptions of their work
✓ The power inherent in the leader’s goals, personal goals and paths to goals
position. attainment.

If the leader is not fit on the situation, the Effective leaders can enhance
following may be tried: subordinate motivation by:
✓ Change the leader’s trait or behavior. ✓ Clarifying the subordinate’s
✓ Select leaders who have traits or perception of work goals.
behaviors fitting the situation. ✓ Linking meaningful rewards with
✓ More leaders around in the goal attainment.
organization until they are in position ✓ Explaining how goals and desired
that fit them. rewards can be achieved.
✓ Change the situation.

ENGINEERING MANAGEMENT – CHAPTER 8: LEADING

Path-Goal Process
Leader identifies
employee needs
Appropriate goals are
estabished
Leader connects rewards
with goals
Leader provides assistance
on employee path towards
goal
Employee becomes
satisfied and motivated
and they accept the leader
Effective performance
occurs
Both employment and
organization better reach
their goals.
Leadership Styles:
1. Directive Leadership
Leader focuses on clear task assignments,
standards of successful performance, and
work schedules.
2. Supportive Leadership
Subordinates are treated as equals in a
friendly manner while striving to improve
their well-being.
ENGINEERING MANAGEMENT – CHAPTER 8: LEADING
3. Participative Leadership
Leader consults with subordinates to seek
their suggestions and then considers those
suggestions when making decisions.
4. Achievement-Oriented Leadership
Leaders set challenging goals, emphasize
excellence, and seek continuous
improvement while maintaining a high
degree of confidence that subordinates
will meet difficult challenges in a
responsible manner.
Vroom’s Decision Making Model
One that prescribes the proper leadership
style for various situations, focusing on the
appropriate degrees of delegation of
decision-making authority.
Alternative Decision Making Styles in the
Vroom Model
SYMBOL DECISION-MAKING DEGREE OF
STYLE SUBORDINATE
PARTICIPATION
AUTHOCRATIC LEADER
Leader solves the problem
or makes the decision
A-1 himself using available None
information
Leader obtains necessary
information from
A-2 subordinates, then decides. Low
CONSULTATIVE LEADER
Leader approaches
subordinates individually
C-1 getting their ideas then Moderate
makes decisions.
Leader shares the problem
with subordinates as a
C-2 group, obtaining their Moderate
collective ideas and
suggestions, then decides.
GROUP DIRECTED
Leader shares the problem
with subordinates as a
G-2 group. Let the group High
generate alternative
solutions, then decides.