Because learning changes everything.

Chapter 14
Leadership

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Learning Objectives 1

 The Nature of Leadership

 Power: The Key to Leadership
 Empowerment
 Traits and Behavior Models ofLeadership
 Contingency Model of Leadership
 Fiedler’s ContingencyModel
 House’s Path-Goal Theory
 The Leader Substitutes Model
 Transformational Leadership
 Being a Charismatic Leader
 Stimulating Subordinates Intellectually
 The Distinction between Transformational and Transactional

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 The Nature of Leadership 1

Leadership:
• The process by which a person exerts influence
over others and inspires, motivates and directs
their activities to achieve group or organizational
goals.

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 The Nature of Leadership 2

Leader:
• An individual who is able to exert influence over
other people to help achieve group or
organizational goals.

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 Figure 14.1 Sources of Managerial Power

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 Power: The Key to Leadership 1

Legitimate power:
• The authority that a manager has by virtue of his or her
position in an organization’s hierarchy.

Reward power:
• The ability of a manager to give or withhold tangible and
intangible rewards.

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 Power: The Key to Leadership 2

Coercive power:
• Coercive power is the ability of a manager to punish
others.
• Overuse of coercive power can even result in dangerous
working conditions.
• Examples include verbal reprimand, pay cuts, and
dismissal.

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 Power: The Key to Leadership 3

Expert power:
• Power that is based on special knowledge, skills, and
expertise that the leader possesses.
• Tends to be used in a guiding or coaching manner.

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 Power: The Key to Leadership 4

Referent power:
• Power that comes from employees’ and coworkers’
respect, admiration, and loyalty.
• Possessed by managers who are likable and whom
employees wish to use as a role model.

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 Empowerment: An Ingredient in Modern
Management
Empowerment: Empowerment increases a
manager’s ability to get
• The process of things done.
giving employees at
Empowerment increases
all levels the
workers’ involvement,
authority to make motivation, and commitment.
decisions, be
responsible for their Empowerment gives
outcomes, improve managers more time to
concentrate on their
quality, and cut
pressing concerns.
costs.

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 Trait and Behavior Models of Leadership 1

Trait model:
• Focused on identifying personal characteristics
that produce effective leadership.
• Leader’s skills, abilities, knowledge, and expertise.

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 Table 14.1 Traits Related to Effective
Leadership
Trait Description
Intelligence Helps managers understand complex issues and solve problems
Knowledge and Help managers make good decisions and discover ways to
expertise increase efficiency and effectiveness
Dominance Helps managers influence their subordinates to achieve
organizational goals
Self-confidence Contributes to managers effectively influencing subordinates and
persisting when faced with obstacles or difficulties
High energy Helps managers deal with the many demands they face
Tolerance for stress Helps managers deal with uncertainty and make difficult decisions
Integrity and Help managers behave ethically and earn their subordinates’ trust
honesty and confidence
Maturity Helps managers to avoid acting selfishly, control their feelings,
and admit when they have made a mistake.

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 Trait and Behavior Models of Leadership 2

Behavioral model:
Identifies the two basic types of behavior that many
leaders engaged in to influence their employees.
• Consideration and initiating structure.

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 The Behavior Model
Consideration:
• Behavior indicating that a manager trusts, respects, and
cares about employees.

Initiating structure:
• Behavior that managers engage in to ensure that work
gets done, employees perform their jobs acceptably, and
the organization is efficient and effective.

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 Contingency Models of Leadership 1

Contingency models:
• Whether or not a
manager is an effective
leader is the result of the
interplay between what CONTEXT
the manager is like,
what he does, and the
situation in which
leadership takes place.

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 Contingency Models of Leadership 2

Fiedler’s model:
Effective leadership is contingent on both the
characteristics of the leader and the situation.
Leader style is a manager’s characteristic approach
to leadership.
Two basic leadership styles:
• Relationship-oriented.
• Task-oriented.

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 Fiedler’s Contingency Model
(watch the video)
Relationship-oriented style:
• Leaders concerned with developing good relations
with their employees and being liked by them.

Task-oriented style:
• Leaders whose primary concern is to ensure that
employees perform at a high level so the job gets
done.

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 Fiedler’s Model Situation Characteristics 1

Leader-member relations:
• Extent to which followers like, trust, and are loyal
to their leader.

Task structure:
• Extent to which the work to be performed is clear-
cut so that a leader’s employees know what needs
to be accomplished and how to accomplish it.

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 Fiedler’s Model Situation Characteristics 2

Position power:
• Amount of legitimate, reward, and coercive power
that a leader has by virtue of his or her position in
an organization.
• Determinant of how favorable a situation is for
leading.

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 Figure 14.2 Fiedler’s Contingency
Theory of Leadership

Access the text alternative for slide images.

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 https://www.youtube.com/watch?v=ubGRWYpXxUM

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 House’s Path-Goal Theory
A contingency model of leadership
proposing that effective leaders can motivate
employees to achieve goals by:
1. Clearly identifying the outcomes that employees are
trying to obtain from their jobs.
2. Rewarding employees with these outcomes for high-
performance and attainment of work goals.
3. Clarifying the paths leading to the attainment of work
goals.

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 Path-Goal Leadership Behaviors 1

Directive behaviors:
• Setting goals, assigning tasks, showing
employees how to complete tasks, and taking
concrete steps to improve performance.

Supportive behavior:
• Expressing concern for employees and looking out
for their best interests.

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 Path-Goal Leadership Behaviors 2

Participative behaviors:
• Give employees a say in matters and decisions
that affect them.

Achievement-oriented behavior:
• Setting challenging goals, expecting that they be
met, and believing in employees’ capabilities.

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 The Leader Substitutes Model(watch the video) 1

Leadership
substitute: Members of an
• It is characteristic of an organization can
employee or of a sometimes perform
situation or context that well without a
acts in place of the manager exerting
influence of a leader influence over
and makes leadership them.
unnecessary.

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 The Leader Substitutes Model 2

Possible substitutes can be found in:

Characteristics of the employees:
• Skills, experience, motivation.

Characteristics of context:
• Extent to which work is interesting and fun.

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 https://www.youtube.com/watch?v=xnxoiV
QfePI

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 Table 14.2 Contingency Models of
Leadership
Model Focus Key Contingencies
Fiedler’s Describes two leader styles, Whether a relationship-oriented
contingency relationship-oriented and or a task-oriented leader is
model task-oriented, and the kinds effective is contingent on the
of situations in which each situation.
kind of leader will be most
effective.
House’s path- Describes how effective The behaviors that managers
goal theory leaders motivate their should engage in to be effective
followers. leaders are contingent on the
nature of the employees and the
work they do.
Leader Describes when leadership Whether leadership is necessary
substitutes is unnecessary. for employees to perform highly
model is contingent on characteristics of
the employees and the situation.

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 Transformational Leadership
A transformational leader makes employees aware of how
important their jobs are for the organization and how
necessary it is for them to perform those jobs as best they
can so that the organization can attain its goals.

A transformational leader makes employees aware of their

own needs for personal growth, development, and
accomplishment.

A transformational leader motivates workers to work for the

good of the organization, not just for their own personal gain
or benefit.

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 Being a Charismatic Leader
Charismatic leader:
• An enthusiastic, self-confident transformational leader able
to clearly communicate his vision of how good things could
be.
• Being excited and clearly communicating excitement to
employees.
• Openly sharing information with employees so that
everyone is aware of problems and the need for change.

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 Stimulating Employees Intellectually

Intellectual stimulation:
• Behavior a leader engages in to make employees aware of
problems and make them view these problems in new
ways, consistent with the leader’s vision.

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 Engaging in Developmental Consideration

Developmental consideration:
• Manager supports and encourages employees, giving
them opportunities to enhance their skills and capabilities
and to grow and excel on the job.

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 The Distinction between Transformational
and Transactional Leadership
Transactional leaders:
• Leadership that motivates employees by rewarding them
for high performance and reprimanding them for low
performance.

Transformational leaders:
• May use transactional leadership as a tool, but see bigger
picture.
• Employees tend to have more job satisfaction and a high
level of performance, trust in leaders, and they feel fairly
treated.

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 End of Main Content

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© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No
reproduction or further distribution permitted without the prior written consent of McGraw Hill.