Business Leadership- BOH4M

Unit 3 KEY TERMS (Leading)

Leadership The process of inspiring others to work hard to accomplish important tasks.
Vision Refers to a future that one hopes to create or achieve in order to improve upon the
present state of affairs.
Visionary leadership Describes a leader who brings to the situation a clear and compelling sense of the future
as well as an understanding of the actions needed to get there successfully.
Power The ability to get someone else to do something you want done or to make things
happen the way you want.
Referent power The capacity to influence the behaviour of other people because they admire you and
want to identify positively with you.
Reward power The capability to offer something of value –– a positive outcome –– as a means of
influencing the behaviour of other people.
Coercive power The capability to punish or withhold positive outcomes as a means of influencing the
behaviour of other people.
Legitimate power The right by virtue of one’s organizational position or status to exercise control over
persons in subordinate positions.
Expert power The capacity to influence the behaviour of other people because of one’s knowledge and
skills.
Leadership style The recurring pattern of behaviours exhibited by a leader.
Democratic style Is committed to both task and people, getting things done while sharing information,
encouraging participation in decision making, and helping people develop their skills
and competencies.
Laissez-faire style Shows little concern for task, lets the group make decisions, and acts with a “do the best
you can and don’t bother me” attitude.
Autocratic style Emphasizes task over people, keeps authority and information within the leader’s tight
control, and acts in a unilateral command-and-control fashion.
Transactional Describes someone who directs the efforts of others through tasks, rewards, and
leadership structures.
Transformational Describes someone who is truly inspirational as a leader and who arouses others to seek
leadership extraordinary performance accomplishments.
Charismatic leader A leader who develops special leader-follower relationships and inspires others in
extraordinary ways.
Emotional intelligence The ability of people to manage themselves and their relationships effectively.
Ethical leadership Adheres to moral standards that meet the ethical test of being “good” rather than “bad”
and “right” rather than “wrong.”
Integrity Involves the leader’s honesty, credibility, and consistency in putting values into action.
Servant leadership Leadership based on a commitment to serving others – to helping people use their
relents to full potential while working together for organizations that benefit society