Leaders and Leadership Chapter Ten Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Learning Objectives LO1 Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders LO2 Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership 10-2

Learning Objectives (cont.) LO3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations LO4 Describe what transformational leadership is, and explain how managers can engage in it LO5 Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness. 10-3

The Nature of Leadership Leadership – The process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals 10-4

The Nature of Leadership Leader – An individual who is able to exert influence over other people to help achieve group or organizational goals 10-5

The Nature of Leadership Personal Leadership Style – The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management. – The challenge is for managers at all levels to develop an effective personal management style 10-6

The Nature of Leadership Servant leaders – leader who has a strong desire to serve and work for the benefit of others – shares power with followers – strives to ensure that followers’ most important needs are met 10-7

Discussion Question What culture has the most effective leadership style? A.Japanese B.European C.United States D.Middle Eastern 10-8

Leadership Across Cultures Leadership styles may vary among different countries or cultures – European managers tend to be more people- oriented than American or Japanese managers – Japanese managers are group-oriented, while U.S managers focuses more on profitability – Time horizons also are affected by cultures 10-9

Sources of Managerial Power Figure

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 10-11

Power: The Key to Leadership Legitimate Power – The authority that a manager has by virtue of his or her position in an organizational hierarchy Reward Power – The ability of a manager to give or withhold tangible and intangible rewards 10-12

Power: The Key to Leadership Coercive Power – The ability of a manager to punish others Expert Power – Power that is based on special knowledge, skills, and expertise that a leader possesses 10-13

Power: The Key to Leadership Referent Power – Power that comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration

Empowerment: An Ingredient in Modern Management Empowerment – The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes 10-15

Empowerment: An Ingredient in Modern Management Empowerment: Increases a manager’s ability to get things done Increases workers’ involvement, motivation, and commitment Gives managers more time to concentrate on their pressing concerns 10-16

Leadership Models Trait Model – Focused on identifying personal characteristics that cause effective leadership. – Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits

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 10-18

The Behavior Model Behavioral Model – Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates 10-19

The Behavior Model 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 10-20

Contingency Models of Leadership Contingency Models – 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 10-21

Contingency Models of Leadership Fiedler’s Model – Personal characteristics can influence leader effectiveness – Leader style is the manager’s characteristic approach to leadership 10-22

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 10-23

Fiedler’s Model Situation Characteristics – How favorable a situation is for leading to occur – Leader-member relations—determines how much workers like and trust their leader 10-24

Fiedler’s Model Task structure – the 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 – the amount of legitimate, reward, and coercive power leaders have by virtue of their position – When positional power is strong, leadership opportunity becomes more favorable 10-25

Fiedler’s Contingency Theory of Leadership Figure

House’s Path-Goal Theory A contingency model of leadership proposing the effective leaders can motivate subordinates by: 1.Clearly identifying the outcomes workers are trying to obtain from their jobs. 2.Rewarding workers for high-performance and goal attainment with the outcomes they desire 3.Clarifying the paths to the attainment of the goals, remove obstacles to performance, and express confidence in worker’s ability

House’s Path-Goal Theory Directive behaviors – set goals, assign tasks, show how to do things Supportive behavior – look out for the worker’s best interest 10-28

House’s Path-Goal Theory Participative behavior – give subordinates a say in matters that affect them Achievement- oriented behavior – Setting very challenging goals, believing in worker’s abilities 10-29

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 10-30

The Leader Substitutes Model Possible substitutes can be found in: – Characteristics of the subordinates: their skills, experience, motivation. – Characteristics of context: the extent to which work is interesting and fun

Transformational Leadership Leadership that: – 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 10-32

Being a Charismatic Leader Charismatic Leader – An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be 10-33

Intellectual Stimulation – Behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader’s vision 10-34

Developmental Consideration – Behavior a leader engages in to support and encourage followers and help them develop and grow on the job 10-35

Transactional Leadership Transactional Leaders – Leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance 10-36

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. Similarly, men are seen as task-focused

Emotional Intelligence and Leadership The Moods of Leaders: – Groups whose leaders experienced positive moods had better coordination – Groups whose leaders experienced negative moods exerted more effort 10-38

Emotional Intelligence and Leadership Emotional Intelligence – Helps leaders develop a vision for their firm – Helps motivate subordinates to commit to the vision – Energizes subordinates to work to achieve the vision 10-39

Video Case: Google Extends Charitable Giving Are Google co-founders Brin and Page servant leaders? How about Larry Brilliant? What would you say is the biggest source of Larry Brilliant’s power as a leader? How does google.org illustrate empowerment at Google? 10-40