Because learning changes everything.

CHAPTER 14
POWER, INFLUENCE, AND
LEADERSHIP
From Becoming a Manager
to Becoming a Leader

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 LEARNING OBJECTIVES

14-1 Describe managers’ appropriate use of power and

influence.
14-2 Identify traits and characteristics of successful leaders.
14-3 Identify behaviors of successful leaders.
14-4 Describe situational leadership.
14-5 Describe transactional and transformational leadership.
14-6 Describe contemporary leadership perspectives and
concepts.
14-7 Explain how to develop the career readiness
competency of self-awareness.
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 THE NATURE OF LEADERSHIP: THE ROLE OF POWER AND
INFLUENCE

What Is the Difference between Leading and Managing?

Leadership is the ability to influence employees to voluntarily pursue
organizational goals.
Leadership coaching is the process of enhancing the skills and abilities
that a leader needs in order to help the organization achieve its goals.

Managerial Leadership: Can You Be Both a Manager and

a Leader?
Six Sources of Power
Common Influence Tactics
How to Use the Tactics to Influence Outcomes

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 WHAT IS THE DIFFERENCE BETWEEN LEADING AND
MANAGING?
BEING A MANAGER MEANS... BEING A LEADER MEANS…
Planning, organizing, directing, controlling Being visionary

Executing plans and delivering goods and services Being inspiring, setting the tone, and articulating
the vision
Managing resources Managing people

Being conscientious Being inspirational (charismatic)

Acting responsibly Acting decisively

Putting customers first—responding to and acting
for customers
Mistakes can happen when managers don’t
appreciate people are the key resource, underlead
by treating people like other resources, or fail to be
held accountable
Putting people first—responding to and acting for
followers
Mistakes can happen when leaders choose the
wrong goal, direction, or inspiration; overlead; or fail
to implement the vision

Coping with complexity—complex organizations are Coping with change—organizations need

chaotic without good management leadership to direct the constant change necessary
for survival in today’s dynamic business landscape

Table 14.1 Characteristics of Managers and Leaders.

Sources: Adapted from the following sources: P. Lorenzi, “Managing for the Common Good: Prosocial Leadership,” Organizational Dynamics, Vol. 33, No. 3 (2004), p. 286; J. P.
Kotter, ”What Leaders Really Do,” Harvard Business Review, December 2001, pp. 85–96; the role of leadership within organizational change is discussed in J. P. Kotter, Leading
Change (Boston: Harvard Business School Press, 1996); managing in the world of complexity is discussed in G. Sargut and R. G. McGrath, “Learning to Live with Complexity,”
Harvard Business Review, September 2011, pp. 68–76; M. J. Mauboussin, “Embracing Complexity,” Harvard Business Review, September 2011, pp. 88–92.

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 MANAGERIAL LEADERSHIP: CAN YOU BE BOTH A
MANAGER AND A LEADER?

• Managerial leadership includes:

• Influencing followers to internalize,
• Committing to a set of shared goals, and facilitating the
group and individual work that is needed to accomplish
those goals.
• Managerial leadership may be demonstrated by
managers and also by those who exercise
leadership on a daily basis.

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 SIX SOURCES OF POWER

Legitimate Power: Influencing Behavior Because of One’s Formal Position.

-Legitimate power, which all managers have, is power that results from managers’ formal positions within
the organization.
- All managers have legitimate power over their employees, deriving from their position, whether it’s a
construction boss, ad account supervisor, sales manager, or CEO.

Reward Power: Influencing Behavior by Promising or Giving Rewards.

- Reward power, which all managers have, is a power that results from managers’ authority to reward
their subordinates.
• Rewards can range from praise to pay raises, from recognition to promotions.

Coercive Power: Influencing Behavior by Threatening or Giving Punishment.

- Coercive power, which all managers have, results from managers’ authority to punish their
subordinates.
- Punishment can range from verbal or written reprimands to demotions to terminations. In some lines of
work, fines and suspensions may be used

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 SIX SOURCES OF POWER

Expert Power: Influencing Behavior Because of One’s Expertise.

- Expert power is power resulting from one’s specialized information or expertise.
- Expertise, or special knowledge, can be mundane, such as knowing the work schedules
and assignments of the people who report to you.

Referent Power: Influencing Behavior Because of One’s Personal Attraction.

- Referent power is power deriving from one’s personal attraction.
- Referent power may be associated with managers, but it is more likely to be characteristic of leaders.

Informational Power: Influencing Behavior Because of the Logical and/or Valuable

Information One Communicates.
- Informational power is power deriving from one’s access to information.
- Although not included as a separate source of power in the original research on power bases in
organizations, later research added informational power to the typology.

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 TRAIT APPROACHES: DO LEADERS HAVE
DISTINCTIVE TRAITS AND PERSONAL
CHARACTERISTICS?

Positive Task-Oriented Traits and Positive/Negative

Interpersonal Attributes

What Do We Know about Gender and Leadership?

Are Knowledge and Skills Important?

So What Do We Know about Leadership Traits?

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 POSITIVE TASK-ORIENTED TRAITS AND POSITIVE/NEGATIVE
INTERPERSONAL ATTRIBUTES

Table 14.3 Key Task-Oriented Traits and Interpersonal Attributes

POSITIVE TASK-ORIENTED POSITIVE INTERPERSONAL NEGATIVE INTERPERSONAL
TRAITS ATTRIBUTES ATTRIBUTES

• Intelligence • Extraversion • Narcissism

• Conscientiousness • Agreeableness • Machiavellianism

• Open to experience • Emotional intelligence • Psychopathy

• Emotional stability

• Positive affect

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 WHAT DO WE KNOW ABOUT GENDER AND LEADERSHIP?

• Are Women Represented in Leadership Positions? Women

make up more than half the workforce and more than half of all
college students in the United States, but they are still fighting
to achieve gender parity in leadership.
• Do Men and Women Vary in Terms of Leadership?
Researchers have studied gender and leadership in terms of
whether women and men are equally likely to emerge as
leaders, whether they engage in different leader behaviors or
use different styles of leadership, and whether they vary in
terms of their effectiveness as leaders.
• Are There Social Forces Working against Women Leaders?
Women’s representation in leadership is increasing, but
nowhere do their numbers approach their proportion in the
overall population.

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 ARE KNOWLEDGE AND SKILLS IMPORTANT?

• Cognitive abilities to identify problems and their

causes in rapidly changing situations
• Interpersonal skills to influence and persuade
others
• Business skills to maximize the use of
organizational assets
• Conceptual skills to draft an organization’s
mission, vision, strategies, and implementation
plans

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 TABLE 14.4 FOUR BASIC SKILLS FOR LEADERS

WHAT LEADERS NEED AND WHY

Cognitive abilities to identify
problems and their causes in
rapidly changing situations
Interpersonal skills to
influence and persuade others
Leaders must sometimes devise effective solutions in short time
spans with limited information, and this requires strong cognitive
abilities.
Leaders need to work well with diverse people.

Business skills to maximize Leaders increasingly need business skills as they advance up
the use of organizational through an organization.
assets

Conceptual skills to draft an Conceptual skills matter most for individuals in the top ranks in an
organization’s mission, vision, organization. Entrepreneurs may have their conceptual skills tested
strategies, and implementation on a regular basis.
plans

Source: Adapted from T. V. Mumford, M. A. Campion, and F. P. Morgeson, “Leadership Skills Strataplex: Leadership Skill
Requirements across Organizational Levels,” Leadership Quarterly, 2007, pp. 154–166.

© McGraw Hill
 SO WHAT DO WE KNOW ABOUT LEADERSHIP TRAITS?
• We cannot ignore the implications of leadership
traits.
• The positive and “dark triad” traits suggest the
qualities that are conducive and detrimental to
success in leadership roles.
According to expert scholars, narcissistic leaders often have
groundbreaking ideas but fail to execute them successfully.
• Organizations may want to include personality
and trait assessments in their selection and
evaluation processes.
• Cross-cultural competency is an increasingly
valued task-oriented trait.
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 BEHAVIORAL APPROACHES: DO LEADERS SHOW
DISTINCTIVE PATTERNS OF BEHAVIOR?
Behavioral leadership approaches try to determine unique behaviors
displayed by effective leaders. These approaches can be divided into two
categories: (1) task-oriented behavior and (2) relationship-oriented behavior.
Task-Oriented Leader Behaviors is to ensure that human, physical, and other
resources are deployed efficiently and effectively to accomplish the group’s or
organization’s goals.
Relationship-Oriented Leader Behavior leadership is primarily
concerned with the leader’s interactions with his or her people.
• The emphasis is on enhancing employees’ skills and
creating positive work relationships among co-workers and
between the leader and the led.
So What Do We Know about the Behavioral Approaches? Two key conclusions
we may take away from the behavioral approaches are the following:
1. A leader’s behavior is more important than his or her traits.
2. There is no type of leader behavior that is best suited for all situations.
Effective leaders learn how to match their behavior to the situation at hand.

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 SITUATIONAL APPROACHES: DOES LEADERSHIP VARY
WITH THE SITUATION?

The Contingency Leadership Model: Fiedler’s

Approach
The Path–Goal Leadership Model: House’s
Approach
So What Do We Know about the Situational
Approaches?
Effective leadership behavior depends on the situation at
hand, say believers in two contingency approaches: Fiedler’s
contingency leadership model and House’s path–goal
leadership model.

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 THE CONTINGENCY LEADERSHIP MODEL: FIEDLER’S APPROACH
The contingency leadership model determines if a leader’s style is (1) task-
oriented or (2) relationship-oriented and whether that style is effective for the
situation at hand.
• There are two leadership styles in Fiedler’s model: (1) task-oriented and
(2) relationship-oriented.
• Three Dimensions of Situational Control
 Leader-member relations—“Do my subordinates accept me as a leader?”
This dimension, the most important component of situational control,
reflects the extent to which a leader has or doesn’t have the support,
loyalty, and trust of the work group
 Task structure—“Do my subordinates perform clearly, easily understood
tasks?” This dimension refers to the extent to which tasks are routine,
unambiguous, and easily understood. The more structured the jobs, the
more influence a leader has.
 Position power—“Do I have power to reward and punish?
• Which Style Is Most Effective? Neither leadership style is effective all the
time, rather, each is better suited for certain situations.

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 THE PATH–GOAL LEADERSHIP MODEL: HOUSE’S
APPROACH

• The path–goal leadership model, which holds that the

effective leader makes available to followers desirable
rewards in the workplace and increases their motivation by
clarifying the paths, or behaviors, that will help them achieve
those goals and providing them with support.
• What Determines Leadership Effectiveness:
Employee Characteristics and Environmental Factors Affect
Leader Behavior.
• Five employee characteristics are locus of control , task ability,
need for achievement, experience, and need for path–goal clarity.
• Environmental factors: Two environmental factors are task
structure (independent versus interdependent tasks) and work
group dynamics.

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 TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP

Transactional Leadership
• Transactional leadership focuses on clarifying employees’ roles
and task requirements and providing rewards and punishments
contingent on performance.
Transformational Leadership
• Transformational leadership transforms employees to pursue
organizational goals over self-interests.
Transformational leadership is influenced by two factors:

• Individual characteristics: The personalities of such leaders tend to be more

extroverted, agreeable, proactive, and open to change than nontransformational
leaders. (Female leaders tend to use transformational leadership more than male
leaders do.)

• Organizational culture: Adaptive, flexible organizational cultures are more likely than
rigid, bureaucratic cultures to foster transformational leadership.

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 THE BEST LEADERS ARE BOTH TRANSACTIONAL AND
TRANSFORMATIONAL

• Transactional leadership is an essential

prerequisite to effective leadership, and the best
leaders learn to display both transactional and
transformational styles of leadership.
• Transformational leadership leads to superior
performance when it adds to transactional
leadership.

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 FOUR KEY BEHAVIORS OF TRANSFORMATIONAL LEADERS

1. Inspirational Motivation: “Let me share a vision

that transcends us all.”

2. Idealized Influence: “We are here to do the right

thing.”

3. Individualized Consideration: “You have the

opportunity here to grow and excel.”

4. Intellectual Stimulation: “Let me describe the

great challenges we can conquer together.”
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 SO WHAT DO WE KNOW ABOUT TRANSFORMATIONAL
LEADERSHIP?

1.It Can Be Used to Train Employees at Any Level.

• Not just top managers but employees at any level can be trained to be more
transformational.
• It is best to couple this training with developmental coaching and job challenges.
2.You Can Prepare and Practice Being Transformational.
• The simplest way to practice is to write down ideas for exhibiting the four key
behaviors of transformational leadership—inspirational motivation, idealized
influence, individualized consideration, and intellectual stimulation—the next
time you attend a team meeting at school or work.
3.It Should be Used for Ethical Reasons.
• While ethical transformational leaders enable employees to enhance their
self-concepts, unethical ones select or produce obedient, dependent, and
compliant followers.
• Without honesty and trust, even trans-formational leaders lose credibility—
not only with employees but also with investors, customers, and the public.

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 CONTEMPORARY PERSPECTIVES AND CONCEPTS 1

Contemporary leadership perspectives explore relationships

between leaders and followers and consider changing views
about leaders’ roles. Contemporary concepts in leadership
include humility, empowerment, ethics, followership, and
abusive supervision.

Leader–Member Exchange Leadership: Having Different Relationships

with Different Subordinates.

Servant Leadership

The Power of Humility

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 LEADER–MEMBER EXCHANGE LEADERSHIP: HAVING
DIFFERENT RELATIONSHIPS WITH DIFFERENT SUBORDINATES

• The leader–member exchange (LMX) model of

leadership emphasizes that leaders have
different sorts of relationships with different
subordinates.
1. LMX focuses on relationships between managers
and subordinates not on the behaviors or traits of
leaders or followers.
2. LMX assumes that leaders have distinctive
relationships with each follower. Their relationship is
unique.

© McGraw Hill
 SERVANT LEADERSHIP

• Servant Leadership: “I want to serve others and

the organization, not myself.”
• Servant leadership focuses on providing
increased service to others—meeting the goals
of both followers and the organization—rather
than to yourself.

© McGraw Hill
 TABLE 14.6 TEN CHARACTERISTICS AND BEHAVIORS OF
SERVANT LEADERS
Ten Characteristics and behaviors of Servant Leaders

1. Focus on listening.

2. Ability to empathize with others’ feelings.

3. Focus on healing suffering.

4. Self-awareness of strengths and weaknesses.

5. Use of persuasion rather than positional authority to influence others.

6. Broad-based conceptual thinking.

7. Ability to foresee future outcomes.

8. Believe they are stewards of their employees and resources.

9. Commitment to the growth of people.

10. Drive to build community within and outside the organization.

Source: From L. C. Spears, “Introduction: Servant-Leadership and the Greenleaf Legacy,” in L. C. Spears (ed.),
Reflections on Leadership: How Robert K. Greenleaf’s Theory of Servant-Leadership Influenced Today’s Top
Management (New York: John Wiley & Sons, 1995), pp. 1–14.
© McGraw Hill
 THE POWER OF HUMILITY

Humility is a relatively stable trait grounded in the

belief that “something greater than the self exists.”
Humble leaders tend to display five key qualities
that employees value:
1. High self-awareness
2. Openness to feedback
3. Appreciation of others
4. Low self-focus
5. Appreciation of the greater good

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 CONTEMPORARY PERSPECTIVES AND CONCEPTS 2

Empowering Leadership

Ethical Leadership

Followers: What Do They Want, How Can They

Help?

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 EMPOWERING LEADERSHIP

• Empowering Leadership: “I want my employees

to feel they have control over their work.”
• Empowering leadership represents the extent to
which a leader creates perceptions of
psychological empowerment in others.
• Psychological empowerment is employees’ belief
that they have control over their work.

© McGraw Hill
 ETHICAL LEADERSHIP

• Ethical Leadership: “I am ready to do the right

thing.”
• Ethical leadership includes communicating
ethical values to others, rewarding ethical
behavior, and treating followers with care and
concern.

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 FOLLOWERS: WHAT DO THEY WANT, HOW CAN THEY
HELP?

What do followers want in their leaders?

• Significance. Such leaders make followers feel that what
they do at work is important and meaningful.
• Community. These leaders create a sense of unity that
encourages followers to treat others with respect and to
work together in pursuit of organizational goals.
• Excitement. The leaders make people feel energetic and
engaged at work

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 CAREER CORNER: MODEL OF CAREER READINESS

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 CAREER CORNER: BECOMING MORE SELF-AWARE

• Take the time to reflect.

• Write down your priorities.
• Learn your strengths and weaknesses.
• Avoid the Dunning-Kruger effect.

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