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Chapter 1

Definition and Significance of

Leadership

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 Learning Objectives
• Define leadership and leadership effectiveness
• Discuss the major obstacles to effective leadership
• Compare and contrast leadership and management
• List the roles and functions of leaders and
managers
• Explain the changes in organizations and how they
affect leaders
• Summarize the debate over the role and impact of
leadership in organizations
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 Definition of Leadership

A leader is any person 1. who influences

individuals and groups within an
organization, helps them 2. establish
goals, and guides them toward
achievement of those goals, thereby
allowing them to be effective.

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Key Elements of Leadership

• Group/social phenomenon
• Interpersonal influence
• Goal and action oriented
• Assumes hierarchy in a group

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 Definition of Effectiveness

Leaders are effective when their followers

achieve their goals, can function well
together, and can adapt to changing
demands from external forces.

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Key Elements of Effectiveness

1. Goal achievement
2. Smooth internal processes
3. External adaptability

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 Effectiveness vs. Success (Fred
Luthans, 1989)

Effective leaders Successful leaders

• Focus on the work • Focus on politics and
• Focus on networking
employees/followers • Promoted quickly
• Satisfied and productive • Network with
employees outsiders
• Take care of • Take care of
employees/followers supervisor

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 The Leadership Question

The first step to leadership development

is self-awareness

Some leaders are focused on getting things done

while others put taking care of their followers first.
Some look at the big picture
and others focus on the details.

Is one approach better than the other? Which one do

you prefer?
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 The Leadership Question
Revisited

• Leadership involves the tasks, people, big

picture, details, etc.
• What works depends on the leader, the
followers, and the situation
• Many styles and approaches can work
• Understanding the situation is key

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Why Do We Need Leaders?

• To keep groups orderly

• To keep focus on group goals
• To accomplish complex tasks
• To help make sense of the world by
providing validation
• As a romantic ideal

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 Why Leaders Matter
• Leadership is one of many factors that affect the performance of
organizations
• Leadership can indirectly impact other performance factors
• Leadership is essential in providing vision and direction
• Identifying the situations in which leadership matters is essential
• The combination of leaders with followers and other organizational
factors
• Makes an impact

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 Obstacles to Effective Leadership

• Environmental uncertainty
• Organizational rigidity
• Falling back on old ideas and simplistic
solutions
• Established organizational culture

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 Leadership and Management

Managers Leaders
• Focus on the present • Focus on the future
• Maintain the status quo • Create change
• Implement policy • Initiate policy
• Maintain existing culture • Create new culture and
and structure structure
• Remain aloof and • Establish emotional
objective bonds with followers
• Use position power • Use personal power

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 Leader’s Role in Shaping
Organizational Culture

Leader
Vision and Strategy
mission Hiring and structure
Role
modeling Reward decisions
system

Organizational
culture

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 New Roles for Leaders
Control-oriented leadership Result-oriented leadership
Plan Lead Plan
and
Organize Control organize

Lead
Do
Control
Results
Do
Leader assumes responsibility
Follower assumes responsibility
Results
Follower assumes responsibility

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Factors Fueling Change

Increased
global and local
competition De
w i de mo
orld cal cha grap
W l it i e s ng hic
po ang es
ch

Changes in organizations
and their leadership

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 What Do You Do?

You have started on a new job, and based on the

interview and discussion with people prior to accepting
the job, you were led to believe that the company
strongly believes in employee participation, engagement,
and flexibility. After a couple of months of working
with your new boss, however, all you see is command-
and-control, with little opportunity for you to provide
any input.

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