MGT2900

Principles of Management
Ch14: Power, Influence, &
Leadership
Nature of Leadership: Wielding Influence

Leadership
The ability to influence employees to voluntarily
pursue organizational goals.

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 The Thoughts of John Kotter
Being a Manager:
Coping with Complexity
• Determining what needs to
be done - planning and budg
eting
• Creating arrangements of pe
ople to accomplish an agend
a - organizing and staffing
• Ensuring people do their job
s - controlling and problem s
olving
Being a Leader:
Coping with Change
• Determining what needs t
o be done - setting a direc
tion
• Creating arrangements of
people to accomplish an a
genda - aligning people
• Ensuring people do their j
obs - motivating and inspi
ring
Nature of Leadership
Authority
The right to perform or command; it comes with the job
Power
The extent to which a person is able to influence others so
they respond to orders
Consists of two types:
1) Personalized power - Power directed at helping
oneself
2) Socialized power (or Institutional power) - Power
directed at helping others

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 Five Sources of Power
Legitimate Power
results from managers’
formal positions within
the organization

Reward Power results

Referent Power from managers’
derives from one’s authority to reward
personal attraction their subordinates

Expert Power results Coercive Power results

from one’s specialized from managers’
information or authority to punish
expertise their subordinates

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Do Women Have Traits that Make Th
em Better Leaders?
Traits in which women excel:
• Studies show that women executives score higher than
their male counterparts on a variety of measures - from
producing high quality work to goal-setting to mentorin
g employees.
• Women were found to be better at teamwork and partn
ering, being more collaborative, seeking less personal gl
ory, being motivated less by self-interest than in what th
ey can do for the company, being more stable, and bein
g less turf conscious.
Do Women Have Traits that Make
Them Better Leaders?
The Lack of Women at the Top:
1. Unwillingness to compete or sacrifice: Though hard wo
rking, many women simply aren’t willing to compete as
hard as most men are or are not willing to make the req
uired personal sacrifices.

2. Modesty: Women are a tendency to be overly modest a

nd to give credits to others rather than taking it for the
mselves, which can undermine opportunities for promo
tions and raises.
Do Women Have Traits that Make
Them Better Leaders?
The Lack of Women at the Top:
3. Lack of mentor: Women are less likely to hav
e access to a supportive mentor.

4. Starting out lower, and more likely to quit:

Higher quit rates can deprive women from o
btaining promotions and experiences needed
for career advancement.
Approaches to Leadership

1. Trait Approaches
2. Behavioral Approaches
3. Contingency Approaches
4. Full-range Approaches

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 1. Trait Approaches
Attempt to identify distinctive characteristics that account for
the effectiveness of leaders.

Ralph Stogdill in 1948 concluded that the following five traits

were typical to successful leaders:
1. Dominance
2. Intelligence
3. Self-confidence
4. High energy
5. Task-relevant knowledge

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 Behavioral

2. Behavioral Approaches Theories

Behavioral leadership approaches

Attempt to determine the distinctive styles used by
effective leaders
University of Michigan & Ohio State models
Michigan model: two leadership styles
1) Job-centered (or Production-oriented)
2) Employee-centered (or Employee-oriented)
Ohio State model: two dimensions
1) Initiating-structure behavior
2) Consideration behavior

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2. Behavioral Approaches
Some Practical Implications of Trait
& Behavioral Approaches.
• A leader’s behavior is more important than
his or her traits. It is important to train mana
gers on the various forms of task and relatio
nship leadership.
• There is no one best style (behavior) of lead
ership. How effective a particular leadership
behavior depends on the situation at hand.

MGT2900 Principles of Management

3. Contingency Approaches
The Situational Leadership Theory: Hersey’s
Approach (SLT)
Consists of four leadership styles: telling, selling,
participating and delegating
Consists of four stages of follower readiness:
R1, R2, R3 and R4

The House’s Path-Goal Leadership Model

 Consists of four leadership styles: directive,
supportive, participative and achievement-oriented

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Situational Leadership Theory (SLT)
Proposed by “Paul Hersey and Kenneth Blanchard”
Also known as “Hersey and Blanchard’s Situational
Leadership Theory (or SLT Theory)”
Leadership behavior reflects how leaders should
adjust their leadership style according to the
readiness of the followers
Acceptance: leadership effectiveness depends on
whether followers accept or reject a leader.
Readiness: the extent to which followers have the
ability and willingness to accomplish a specific task.

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Situational Leadership Theory (SLT)
SLT posits four stages of follower readiness:
R1: followers are unable and unwilling
R2: followers are unable but willing
R3: followers are able but unwilling
R4: followers are able and willing

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Situational Leadership Theory (SLT)

SLT creates four specific leadership styles:

S1 = Telling: leader defines roles and tells people what, how,

when, and where
S2 = Selling: The leader provides both directive and
supportive behavior.
S3 = Participating: The leader and follower share in decision-
making about how best to complete a high-quality job
S4 = Delegating: The leader provides little close direction,
little specific, and little personal support to followers.

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 SLT Model
Degree of follower’s readiness to assume personal responsibility
R1 R2 R3 R4

Unable Unable Able Able

Unwilling Willing Unwilling Willing

S1 S2 S3 S4
Telling: Selling: Participating: Delegating:
Instructing & Explaining & Sharing & Coaching &
Supervising Clarifying Facilitating Assisting
Leadership behavior appropriate to the situation
 The Path-Goal Leadership Model
The 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.
Obstacles

Subordinates Path Goals

Directive leader
Supportive leader
Participative leader
Achievement-oriented leader
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Leadership Styles in Path Goal Theory
1. Directive Leadership:
provides clear directions and specific guidance of performance
to subordinates.
2. Supportive Leadership:
treats everyone equally, shows concern for well-being and
needs, be friendly and approachable.
3. Participative Leadership:
encourages members to participate in decision making,
involves knowledgeable employees in decision making.
4. Achievement-oriented Leadership:
sets challenging goals, emphasizes excellence, demonstrates
confidence in employee abilities.

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4. The Full-Range Model
Proposed by “Bernard Bass and Bruce Avolio”
Also known as “Full-Range Leadership”
Suggests that leadership behavior varies along a full range
of leadership styles, from take-no-responsibility (laissez-
faire) “leadership” at one extreme, through transactional
leadership, to transformational leadership at the other
extreme
There are three types of leaders:
1. Laissez-faire leader
2. Transactional leader
3. Transformational leader

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2. Transactional Leader
Focus on clarifying employees’ roles and task
requirements and providing rewards and
punishments contingent on performance.
The manager tells the subordinate what to do, and
the subordinate does this not because they are a
blind robot, but because they have been promised
a reward (at minimum their salary) for doing so.
Assumption: People are motivated by
reward and punishment.

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3. Transformational Leader
Focus on transforming employees to pursue
organizational goals over self-interest.
Leaders who inspire followers to transcend their
own self-interests for the good of the organization
by clarifying role and task requirements.
Leaders who also are capable of having a profound
and extraordinary effect on their followers.
Assumption: People will follow a person
who inspires them.

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Key Components of Transformational Leaders

Inspirational Motivation (IM)

Idealized Influence (II)

Individualized Consideration (IC)

Intellectual Stimulation (IS)

Inspirational Motivation (IM)
 IM leader inspires motivation by offering a
vision for the organization.
 “Let me share a vision that transcends us all
.”

MGT2900 Principles of Management

Idealized Influence (II)
II leaders display high ethical standards and
act as models of desirable values.
 They are also able to make sacrifices for the
good of the group.
 “We are here to do the right thing.”

MGT2900 Principles of Management

Individualized Consideration (IC)
IC leaders actively encourage followers to gr
ow and excel by giving them challenging wo
rk, more responsibility, empowerment and o
ne-on-one mentoring.
“You have the opportunity here to grow and
excel.”

MGT2900 Principles of Management

Intellectual Stimulation (IS)
 IS leaders are gifted at communicating the o
rganization’s strengths, weaknesses, opport
unities and threats so that subordinates dev
elop a new sense of purpose.
 Employees take responsibility for overcomi
ng problems and seeking creative solutions.
 “Let me describe the great challenges we c
an conquer together.”
MGT2900 Principles of Management
Any Questions?

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