The Manager as Leader 3.1 The Importance of Leadership CHAPTER 3 The Manager as Leader 3.1 The Importance of Leadership 3.2 Developing Leadership Skills 3.3 Leadership Styles 3.4 Employee Issues and Work Rules

3.1 The Importance of Leadership GOALS Recognize the importance of leadership and human relations. Identify important leadership characteristics and types of power. Describe four types of power available to leaders. CHAPTER 3

The Importance of Leadership Leadership in business Leader: earns the respect and cooperation of employees to effectively accomplish the work of the organization. Leadership: the ability to influence individuals and groups to cooperatively achieve common goals. Human relations: refers to how well people get along with each other when working together. CHAPTER 3

The Importance of Leadership Developing as a leader Not every manager is currently an effective leader, but leadership skills can be developed. A leader not only demonstrates effective human relation skills but also helps others to develop these skills. Leaders must take responsibility for the work of the group they lead, so they need to demonstrate and develop positive human relation skills. CHAPTER 3

Leadership Characteristics Intelligence Judgment Objectivity Initiative Dependability Cooperation Honesty Courage Confidence Stability Understanding CHAPTER 3

Leadership Characteristics Intelligence Leaders use their intelligence to study, learn, and improve their management skills. They also help the people they work with to develop new skills. Leaders must use their intelligence effectively. Judgment Leaders must make many decisions. Consider facts carefully Gather new information Apply knowledge and experience. CHAPTER 3

Leadership Characteristics Objectivity Leaders must be able to look at all sides of a problem and not make biased judgments or statements. Gather information and do not rush into actions before considering the possible results. Value individual differences, and try to avoid reacting to stereotypes or first impressions. Initiative Leaders have ambition and persistence in reaching goals. Self-starters who plan what they want to do and then do it. Have drive and are highly motivated. Encourage others to be involved, take actions, and make decisions when appropriate. CHAPTER 3

Leadership Characteristics Dependability Those who lead are consistent in their actions, and others can rely on them. Do not make promises that cannot be fulfilled. Make a commitment, follow through, and have same expectations for others. Can be counted on! Cooperation Leaders understand the importance of the other people and enjoy being with them. Strive to work well with others. Understand that people working together can accomplish more that the same people working alone. Devote time and effort to building cooperative relations. CHAPTER 3

Leadership Characteristics Honesty Leaders are honest. High standards of personal integrity. Ethical in decisions and treatment of others. Courage Make unpopular decisions and try new approaches in solving problems. Willing to take risks to support others. Confidence Leaders have a great deal of self-confidence. Attempt to make the best decisions possible and trust their own judgment. Respect others and expect quality work. CHAPTER 3

Leadership Characteristics Stability Leaders are not highly emotional. You can depend on their reactions. They work with others to solve problems and reduce conflicts. Understanding Recognize that the feelings and ideas of others are important. Try to understand the people they work with. Encourage others to share their ideas, experiences, and opinions and show that each person is a valuable member of the organization. CHAPTER 3

Influencing People Management power Position power Reward power The manager’s position in the organization. Reward power The manager’s control of rewards/punishments. Expert power The manager’s knowledge and skill. Identity power The employee’s perception of the manager. CHAPTER 3

Influencing People - Using Power Effectively Position/Reward Power Comes from manager’s position in the company. If manager only has position/reward power, employees may do the requested work but may not do it willingly or well. Expert/Identity Power Comes from employees, not position in the company. Employees grant these kinds of power to managers they believe deserve it. Employees consider the manager an expert, they will seek advice and help. Employees want the approval or positive recognition of the manager, they will work cooperatively and support the requests of the manager. CHAPTER 3

3.2 Developing Leadership Skills GOALS Discuss why businesses value leadership skills of managers and employees. Identify and define five important human relations skills. CHAPTER 3

Leadership in Business Developing leadership qualities Leadership skills for managers Leadership skills for employees CHAPTER 3

Human Relations Self-understanding Understanding others Communication Team building Developing job satisfaction CHAPTER 3

3.3 Leadership Styles GOALS Describe three views of employees that affect the type and amount of management supervision. Differentiate among three leadership styles. CHAPTER 3

Management Views of Employees Close management Some managers believe employees will not perform their work well unless they are closely managed. Limited management Managers who believe employees are interested in their work because the job meets many of their personal needs. Flexible management Flexibility in managers’ views of employees permits flexibility in their treatment. Employees tend to prefer managers who are flexible enough to increase or decrease the amount of supervision as needed. CHAPTER 3

Leadership Styles Autocratic leadership Democratic leadership Open leadership Situational leadership CHAPTER 3

Leadership Styles Autocratic Leader Gives direct, clear, and precise orders with detailed instructions as to what, when, and how work is to be done. Employees do not make decisions about the work they perform. Efficiency is one of the reasons for using the autocratic style. Disadvantage is it discourages employees ffrom thinking about better ways of doing their work. CHAPTER 3

Leadership Styles Democratic Leader One who encourages workers to share in making decisions about their work and work-related problems. Managers communicate openly with employees and discuss problems and solutions even though manager still makes final decision. Encourages employees to participate in planning work, solving work problems, and making decisions. Disadvantage is that not all employees like to help make decisions. Planning and discussions are time consuming. CHAPTER 3

Leadership Styles Open Leader Gives little or no direction to employees. Employees are expected to understand the work that needs to be done and details/decisions are left to employees or teams. Works best with experienced workers and where few changes occur. Disadvantages are employees not being confident, confused or having lack of direction. CHAPTER 3

Leadership Styles Situational Leader Understands employees and job requirements and matches actions and decisions to the circumstances. Most effective managers. Employees have different expectations of managers and want to work for an effective manager who understands tem and their needs. Understands the four management functions, demonstrates leadership, uses human relations skills, and chooses the most appropriate style. CHAPTER 3

3.4 Employee Issues and Work Rules GOALS Understand the manager’s role in recognizing and dealing with employees’ personal issues. Describe the importance of establishing and enforcing work rules. CHAPTER 3

Managing Personal Issues Balancing work and personal life Handling difficult personal problems CHAPTER 3

The Need for Work Rules Developing work rules Responding to rules violations CHAPTER 3

Assignment http://www.fastcompany.com/magazine/98/ope,n_3ways-list.html Who are the greatest business leaders in U.S. history? Two Harvard business professors surveyed 7,000 executives to answer that question. The people who made the final list had to have changed the American way of life in some significant way. Review the list of the top 50 business leaders identified through the link above and select one. Use the Internet to learn more about that person and prepare a two-page summary about his or her unique contributions, including a works cited page (so 3 pages total: 2 pg summary with conclusion, 1 works cited). Based on your research, would you agree the person is one of the greatest business leaders in U.S. history? The written summary should present important information about the person selected and the contributions made to business and society. Conclusions should reflect student views of what makes a great business leader. Drop essays to me using the drop it to me link on my webpage. Remember to save your document as period, last name, leader. CHAPTER 3