Leaders and Leadership Chapter 10 Leaders and Leadership

Learning Objectives Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavior models of leadership

Learning Objectives Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations Describe what transformational leadership is, and explain how managers can engage in it Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness

The Nature of Leadership Leadership: Process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals Leader: An individual who is able to exert influence over other people to help achieve group or organizational goals

The Nature of Leadership Personal leadership style Specific ways in which a manager chooses to influence others Shapes the way that manager approaches the other tasks of management Challenge is for managers at all levels to develop an effective personal management style Leaders look to the future, chart the course for the organization, and attract, retain, motivate, inspire, and develop relationships with employees

The Nature of Leadership Servant leaders: Have a strong desire to serve and work for the benefit of others Share power with followers Strive to ensure that followers’ most important needs are met

Question What culture has the most effective leadership style? A. Japanese B. European C. United States D. Middle Eastern There is no one correct answer. This will give students an opportunity to discuss the differences in leadership styles in different cultures.

Leadership Styles Across Cultures Leadership styles may vary among different countries or cultures European managers tend to be more people- oriented than American or Japanese managers In Japan the prime emphasis is on a group rather that an individual Organizations in the United States tend to be very profit-oriented and thus tend to downplay the importance of individuals Cross-cultural difference occur in time horizons

Figure 10.1 - Sources of Managerial Power

Question What type of power is the ability of a manager to give or withhold tangible and intangible rewards? A. Reward B. Coercive C. Expert D. Legitimate The correct answer is “A” – reward power.

Power: The Key to Leadership A key component of effective leadership is found in the power the leader has Legitimate power: Authority that a manager has by virtue of his or her position in an organizational hierarchy Reward power: Ability of a manager to give or withhold tangible and intangible rewards Effective managers use their reward power to show appreciation for subordinates’ good work and efforts Ineffective managers use rewards in a controlling manner

Power: The Key to Leadership Coercive power: Ability of a manager to punish others Excessive use of coercive power seldom produces high performance and is questionable ethically Expert power: Is based on special knowledge, skills, and expertise that a leader possesses Expert power tends to be best used in a guiding or coaching manner

Power: The Key to Leadership Referent power: Comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration Managers can take steps to increase their referent power Spending time to get to know their subordinates, showing concern for them

Empowerment: An Ingredient in Modern Management Empowerment: Expansion of employees’ knowledge, tasks, and decision making responsibilities Empowerment contributes to effective leadership by: Increasing a manager’s ability to get things done with the support and help of subordinates Increasing workers’ involvement, motivation, and commitment Enabling managers can spend less time on daily supervision activities

Leadership Models Trait model Focuses on identifying personal characteristics that cause effective leadership Identifies traits like the leader's skills, abilities, intelligence, knowledge, expertise, dominance, integrity and honesty Some effective leaders do not possess all these traits, and some leaders who possess them are not effective in their leadership roles

Question? Which leadership model identifies the two basic types of behavior that many leaders engaged in to influence their subordinates? A. Fiedler B. Path-goal C. Behavioral D. Trait The correct answer is “C” – behavioral model.

The Behavior Model Behavioral model: Identifies the two basic types of behavior that many leaders engage in to influence their subordinates—consideration and initiating structure Consideration: Behavior indicating that a manager trusts, respects, and cares about subordinates Initiating structure: Behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective

Contingency Models of Leadership Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he does, and the situation in which leadership takes place Effectiveness of a leader with certain traits is contingent on the situation or context in which he performs

Contingency Models of Leadership Fiedler’s model Personal characteristics can influence leader effectiveness Leader style is the manager’s characteristic approach to leadership Identifies two basic leader styles: Relationship- oriented and task-oriented

Relationship-oriented style Contingency Models of Leadership Relationship-oriented style Leaders concerned with developing good relations with their subordinates and to be liked by them Task-oriented style Leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment

Fiedler’s Model Situation characteristics Leadership style is an enduring characteristic Three important situational characteristics determine how favorable a situation is for leading Leader–member relations Task structure Position power

Fiedler’s Model Leader–member relations: Extent to which followers like, trust, and are loyal to their leader Task structure: Extent to which workers tasks are clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it Position power: Amount of legitimate, reward, and coercive power leaders have by virtue of their position

Figure 10.2 - Fiedler’s Contingency Theory of Leadership

House’s Path-Goal Theory A contingency model of leadership proposing the effective leaders can motivate subordinates by: Clearly identifying the outcomes workers are trying to obtain from their jobs Rewarding workers for high-performance and goal attainment with the outcomes they desire Clarifying for subordinates the paths leading to the attainment of work goals

House’s Path-Goal Theory Directive behaviors include setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance Supportive behaviors include expressing concern for subordinates and looking out for their best interests Participative behaviors give subordinates a say in matters and decisions that affect them Achievement-oriented behaviors motivate subordinates to perform at the highest level possible

The Leader Substitutes Model Leadership substitute: A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary Characteristics of subordinates—such as their skills, abilities, experience, knowledge, and motivation Characteristics of the situation or context —such as the extent to which the work is interesting and enjoyable

Transformational Leadership Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback to the worker Makes subordinates aware of their own needs for personal growth and development Motivates workers to work for the good of the organization, not just themselves

Being a Charismatic Leader Charismatic leader: Enthusiastic, self-confident leader who is able to clearly communicate his or her vision of how good things could be Their vision usually entails improvements in the organization’s structure, culture, strategy, decision making, and other critical processes

Intellectual Stimulation Behavior a leader engages in to make followers be aware of problems and view those problems in new ways, consistent with the leader’s vision

Developmental Consideration Behavior a leader engages in to support and encourage followers and help them develop and grow on the job

Transactional Leadership Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance Many transformational leaders engage in transactional leadership Reward subordinates for a job well done and notice and respond to substandard performance When leaders engage in transformational leadership, their subordinates tend to have higher levels of job satisfaction and performance

Gender and Leadership The number of women managers is rising but is still relatively low in the top levels of management Stereotypes suggest women are supportive and concerned with interpersonal relations while men are seen as task-focused Key research outcomes Male and female managers do not differ significantly in their propensities to perform different leader behaviors Male and female managers tend to be equally effective as leaders

Emotional Intelligence and Leadership A leader’s level of emotional intelligence plays a particularly important role in leadership effectiveness Emotional intelligence may enable leaders to: Motivate their subordinates to commit to their vision Develop a significant identity for their organization and instill high levels of trust and cooperation throughout the organization Respond appropriately when they realize they have made a mistake