Chapter 13 BOH4M Business Leadership LEADING Chapter 13 BOH4M Business Leadership

The nature 0f leadership Leadership – is the process of inspiring others to work hard to accomplish important tasks. Vision – is a clear sense of the future. Visionary leadership – brings to the situation a clear sense of the future and an understanding of how to get there.

The nature of leadership Figure 13.1 Leading viewed in relationship to the other management functions. Leading… to inspire effort Planning… to set the direction Organizing… to create structures Controlling… to ensure results

The five principles for meeting the challenges of visionary leadership 1. Be the example – provide a consistent model of how others can and should act. 2. Show enthusiasm – inspire others through personal enthusiasm to share in a common vision. 3. Help others to act – be a team player and support the efforts and talents of others. 4. Challenge the process – be a pioneer; encourage innovation and support people who have ideas. 5. Celebrate achievements – bring emotion into the workplace and rally “hearts” and “minds.”.

Power and influence Power – is the ability to get someone else to do something you want done or to make things happen the way you want. SOURCES OF POSITION POWER Reward power – is the capacity to offer something of value as a means of influencing other people. Coercive power – is the capacity to punish or withhold positive outcomes as a means of influencing other people. Legitimate power – is the capacity to influence other people by virtue of formal authority, or the rights of office.

POWER AND INFLUENCE SOURCES OF PERSONAL POWER Expert power - is the capacity to influence other people because of specialized knowledge. Referent power - is the capacity to influence other people because of their desire to identify personally with you. TURNING POWER INTO INFLUENCE To succeed at leadership, managers must both acquire all types of power and use them appropriately. The best leaders understand that use of the various power bases results in quite different outcomes. When one relies on rewards, legitimacy, and coercion, compliance will be short lived. When one relies on expert and reference power, has more impact in that the follower responds positively through internalized understanding or beliefs that create long-lasting impact on behaviour.

Ethics and the limits to power Ethical dilemmas occur when leaders and managers pressure followers to do questionable things. In order to alleviate this issue, the follower must ask himself/herself this question: Where do I (or will I) draw the line; at what point do I (or will I) refuse to comply with requests? As Chester Barnard said, “It is the acceptance” that establishes the limits of managerial power.”

Leadership and empowerment Empowerment – enables others to gain and use decision-making power. Effective leaders empower other by providing them with the information, responsibility, authority, and trust to make decisions and act independently. They know that when people feel empowered to act, they tend to follow through with commitment and high-quality work.