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Chapter

12
Leadership

McGraw-Hill/Irwin
Management, 7/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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Learning Objectives
 After Studying Chapter 12, You will Know
 What it means to be a leader.
 What people want and organizations from leaders.
 How a good vision helps you be a better leader.
 How to understand and use power.
 The personal traits and skills of effective leaders.
 The behaviors that will make you a better leader.
 What it means to be a charismatic and
transformational leader.
 The many types of opportunities to be a leader in an
organization.
 How to further your own leadership development.
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What Do We Want from Our Leaders?

 They want help in achieving their goals; which
includes
 Support for their development
 Clearing obstacles so they can perform at high
levels
 Treatment that is respectful, fair and ethical
 This is not only about pay and promotions
 Leaders throughout the organization are needed
to do the things that their people want, but also
to help create and implement strategic direction
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Key Leadership Behaviors

 According to James Kouzes and Barry Posner, the best
leaders:
 Challenge the process – they challenge conventional
beliefs and practices, and they create change
 Inspire a shared vision – they appeal to people’s values
and motivate them to care about an important mission
 Enable others to act – they give people access to
information and give them the power to perform to their
full potential
 Model the way – they are living examples of the ideals
they believe in
 Encourage the heart – they show appreciation, provide
rewards and use various approaches to motivate people
in positive ways
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Vision
 Vision is a mental image of a possible and
desirable future state of the organization
 It expresses the leader’s ambitions for the
organization
 Vision is necessary for effective leadership
 A person or team can develop a vision for any
job, work unit, or organization
 Many people who do not develop into strong
leaders, do not develop a clear vision
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Vision
 Visions must be clear so
that people know what
they are working toward
 Visions can fail for a
number of reasons
 An inappropriate vision
may reflect merely the
leader’s personal needs
 An inappropriate vision
may ignore stakeholder
needs
 The vision may not take
environmental changes
into account
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Leading and Managing

 Management will  Leaders will
 deal with the ongoing  Effectively orchestrating
day-to-day complexities important change
of organizations  Set the direction for the
 Plan and budget firm
routines  Inspire people to attain
 Structure the the vision
organization, staff it  Keep people focused on
with capable people, moving the organization
and monitor activities toward its ideal future,
motivating them to
overcome whatever
obstacles lie in the way
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Leading and Managing

 Highlighting the need for leadership is not to
minimize the importance of management or
manager
 Leadership involves unique processes that are
distinguishable from basic management
process
 Just because they involve different processes
does not mean that they require different,
separate people
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Leading and Managing

 Rather than try to distinguish between
management and leadership it might be more
effect to discuss strategic and supervisory
leadership
 Supervisory leadership is behavior that
provides guidance, support, and corrective
feedback for day-today activities
 Strategic leadership gives purpose and
meaning to organizations
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Leading and Following

 Organizations succeed or fail not only
because of how well they are led but because
of how well followers follow
 Good followers help produce good leaders
 The most effective followers are capable of
independent thinking and at the same time
are actively committed to organizational
goals
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Power and Leadership

 Central to effective leadership is power
 Power is the ability influence others
 Leaders have five important potential sources of power
 Legitimate power means that the leader has the right, or
authority to tell others what to do
 Reward power means the leader influences others
because she controls valued rewards
 Coercive power means the leader has control over
punishments
 Referent Power means the leader has personal
characteristics that appeal to others
 Expert Power means the leader has certain expertise or
knowledge
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Traditional Approaches to Understanding

Leadership
 There are three traditional approaches to
studying leadership
 Trait approach is a perspective that attempts to
determine the personal characteristics that great
leaders share
 Behavioral approach is a perspective that attempts
to identify what good leaders do – that is what
behaviors they exhibit
 Situational approach is a perspective proposing
that universally important traits and behaviors do
not exist, and that effective leadership behavior
varies from situation to situation
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Leader Traits
 Drive – this refers to a set of characteristics
that reflect a high level of effort; it includes
high need for achievement, striving for
improvement, ambition, energy tenacity, and
initiative
 Leadership motivation – refers to the fact
that great leaders no only have drive they
also want to lead; extraversion is considered
important for this area
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Leader Traits
 Integrity – refers to the correspondence
between actions and words; honesty and
credibility are especially important for
leaders
 Self-confidence – this allows a leader to
overcome obstacles, make decisions despite
uncertainty, and instill confidence in others
 Knowledge of the business – effective leaders
have a high level of knowledge about their
industries, companies, and technical matters
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Leader Behaviors
 Task performance – actions taken to ensure
that the work group or organization reaches
its goals
 Group maintenance – actions taken to ensure
the satisfaction of group members, develop
and maintain harmonious work relationships,
and preserve the social stability of the group
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Participation in Decision Making

 Participation in decision making describes
how managers perform in involving their
employees in making decisions
 Autocratic leadership – a form of leadership in
which the leader makes decisions on his or her
own and then announces those decisions to
the group
 Democratic leadership – a form of leadership
in which the leader solicits input from
subordinates
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The Effects of Leader Behavior

 Decision styles – a democratic approach
resulted in the most positive attitudes,
whereas an autocratic approach resulted n
somewhat higher performance
 Performance and Maintenance Behaviors
 Maintenance behaviors (consideration) lead to
fewer grievances and less turnover
 Performance behavior (initiating structure)
tends to lead to more grievances and higher
turnover rates
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Situational Approaches to Leadership

 Proponents of this
approach believe
that effective leader
behaviors vary from
situation to situation
 The leader should
first analyze the
situation and then
decide what to do
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Situational Factors for Problem Analysis

 Decision significance: The significance of the

decision to the success of the project
 Importance of commitment: The importance
of team members’ commitment to the
decision
 Leader’s expertise: Your knowledge or
expertise in relation to this problem
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Situational Factors for Problem Analysis

 Likelihood of commitment: the likelihood
that the team would commit itself to a
decision that you might make on your own
 Group support for objectives: The degree to
which the team supports the organization’s
objectives at stake in this problem
 Group expertise: Team Members’ knowledge
or expertise in relation to this problem
 Team competence: The ability of team
members to work together in solving
problems
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Vroom Model of Leadership

 The Vroom model emphasizes the
participative dimension of leadership
 There are five leader decision styles
 Decide: the leader makes the decision alone
 Consult individually: The leader presents the
problem to the group members individually for
suggestions and then makes the decision
 Consult the group: the leader presents the
problem to the group members in a meeting
for suggestions and then makes the decision
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Vroom Model of Leadership

 The five leader decision styles continued
 Facilitate – the leader presents the problem to
the group in a meeting and then acts as a
facilitator to define the problem to be solved
 Delegate: The leader permits the group to
make the decision within prescribed limits
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Path-Goal Theory
 Key situational factors are
 Personal characteristics of followers
 Environmental pressures and demands with which
followers must cope to attain their work goals
 Four pertinent leadership behaviors
 Directive leadership – a form of task performance-
oriented behavior
 Supportive leadership - a form of group
maintenance-oriented behavior
 Participative leadership
 Achievement-oriented leadership – behaviors
geared toward motivating people
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Path-Goal Theory

 Three follower characteristics

 Authoritarianism – the degree to which individuals
respect, admire, and defer to authority
 Locus of control – the extent to which individuals see
the environment as responsive to their own behavior
 Ability – an individuals belief about their own ability to
do an assigned job
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Charismatic Leadership
 Charismatic leaders are
people who are
dominate, self-
confident, convinced of
the moral
righteousness of their
beliefs, and able to
arouse a sense of
excitement and
adventure in followers
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Transformational Leadership
 The transformational leader motivates people
to transcend their personal interests for the
good of the group
 The transformational process moves beyond
the more traditional transactional approach
to leadership
 Transactional leaders manage through
transactions, using their legitimate, reward,
and coercive powers to give commands and
exchange rewards for services rendered
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Transformational Leadership
 Transformational leaders generate excitement
through their charisma, giving followers
individualized attention, and being intellectually
stimulating
 At least four skills or strategies contribute to
transformational leadership
 Having a vision
 Communicating the vision
 Building trust
 Having a positive self-regard
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Transformational Leadership
 Transformation leaders have a positive
impact on followers’ personal development
 Level 5 leadership is considered, by some, the
ultimate leadership style
 It is a combination of strong professional will
and humility that builds enduring greatness
 It requires that the leader exhibit a
combination of transactional and
transformational styles
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Authenticity
 Authentic leadership is rooted in the ancient
Greek philosophy ‘To thine own self be true’
 Authentic leaders strive for authenticity in
the form of honesty, genuineness, reliability,
integrity, and trustworthiness
 Authentic transformational leaders care about
public interests not just own
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Opportunities for Leaders

 The leader’s job is to create an environment
in which each person can figure out what
needs to be done and then do it well
 This perspective creates a number of
nontraditional leadership roles
 Servant leaders are those who serve others’
needs while strengthening the organization
 Bride leaders are those who bridge conflicting
value systems or different cultures
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Opportunities for Leaders

 Nontraditional leadership roles continued
 Shared leadership occurs when people rotate
through the leadership role based on which
person has the most relevant skills at a
particular time
 Lateral leadership is a style in which
colleagues at the same hierarchical level are
invited to collaborate and facilitate joint
problem solving
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A Note on Courage
 Acts of courage required to fulfill your vision
will include:
 Seeing things as they are and facing them
head-on
 Saying what needs to be said to those who
need to hear it
 Persisting despite resistance, criticism, abuse,
and setbacks
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Developing Your Leadership Skills

 How did great leaders develop leadership skills?
 ‘By taking risks, trying, and learning from my mistakes.’
 ‘Lots of practice.’
 ‘By making mistakes myself and trying a different
approach.’
 ‘By purposely engaging with others to get things done.’
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How Do I Start?
 Think about your potential employer and look at
how it develops leadership talent
 Seek developmental experiences like:
 Assignments to build something from nothing or to
turn around a failing operation
 Have exposure to positive role models and work
with people of divers backgrounds
 Hardships will teach you numerous things, what
can you learn from current hardships
 Other developmental events include formal
courses, job experiences, and supervision
experiences
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What Are the Keys?

 The most effective developmental
experiences have three components
 Assessment – where you are now, your
strengths, leadership effectiveness, and
primary development needs
 Challenge – they will stretch you by
challenging the way you think and behave
 Support – others will value your efforts to
learn and grow
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Looking Ahead
 Chapter 13 Motivating for Performance
 The kinds of behaviors managers need to
motivate in people.
 How to set challenging, motivating goals.
 How to reward good performance properly.
 The key beliefs that affect people’s motivation.
 The ways in which people’s individual needs
affect their behavior.
 How to create a motivating, empowering job.
 How people assess fairness and how to achieve
fairness.
 The causes and consequences of a satisfied
workforce.