1. Leadership Chapter 14

2. The Nature of Leadership Leadership: The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. Styles Servant leader Charismatic Transactional Transformational

3. Sources of Managerial Power

4. Power: The Key to Leadership Legitimate Power: The authority that a manager has by virtue of his or her position in an organization’s hierarchy. Reward Power: The ability of a manager to give or withhold tangible and intangible rewards. Coercive Power: The ability of a manager to punish others Overuse of coercive power can even result in dangerous working conditions. Examples: verbal reprimand, pay cuts, and dismissal

5. Power: The Key to Leadership Expert Power: Power that is based on special knowledge, skills, and expertise that the leader possesses. Tends to be used in a guiding or coaching manner Referent Power: Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty Possessed by managers who are likable and whom subordinates wish to use as a role model

6. Empowerment: An Ingredient in Modern Management Empowerment The process of giving employees at all levels in the organization the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs

7. Leadership Models Trait Model: Focused on identifying personal characteristics that cause effective leadership.

8. Leadership Models Behavioral Model Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates Consideration, initiating structure

9. 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. 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 Fiedler’s Theory: matches leaders traits to situation House’s Path Goal: matches behavioral styles to situation & followers needs Substitute Model: situations where strong leadership is not needed

11. Contingency Models of Leadership Fiedler’s Model Effective leadership is contingent on both the characteristics of the leader and of the situation. Leader style is a manager’s characteristic approach to leadership

12. Fiedler’s Contingency Model Relationship-oriented style (High LPC): leaders concerned with developing good relations with their subordinates and to be liked by them. Task-oriented style (Low LPC): leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done.

13. Fiedler’s Model 3 Situation Characteristics Leader-member relations extent to which followers like, trust, and are loyal to their leader Task structure extent to which the work to be performed is 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 that a leader has by virtue of his or her position in an organization determinant of how favorable a situation is for leading Favorable to Unfavorable Situations

14. Fielder’s Model

15. House’s Path-Goal Theory A contingency model of leadership proposing that effective leaders can motivate subordinates to achieve goals by: 1.Clearly identifying the outcomes that subordinates are trying to obtain from their jobs. 2.Rewarding subordinates with these outcomes for high-performance and attainment of work goals 3.Clarifying the paths leading to the attainment of work goals

16. Path-Goal Leadership Behaviors Directive behaviors setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance. Supportive behavior expressing concern for subordinates and looking out for their best interests. Participative behavior give subordinates a say in matters and decisions that affect them. Achievement-oriented behavior setting challenging goals, expecting that they be met, and believing in subordinates’ capabilities.

17. House’s Path Goal Theory

18. The Leader Substitutes Model Leadership Substitute characteristic of a subordinate or of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary. Members of an organization sometimes can perform highly without a manager exerting influence over them 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.

19. Transformational Leadership Leadership that: 1.Makes subordinates aware of the importance of their jobs are for the organization and how necessary it is for them to perform those jobs as best they can so that the organization can attain its goals 2.Makes subordinates aware of their own needs for personal growth, development, and accomplishment 3.Motivates workers to work for the good of the organization, not just for their own personal gain or benefit

20. Being a Charismatic Leader Charismatic Leader: An enthusiastic, self-confident transformational leader able to clearly communicate his vision of how good things could be Being excited and clearly communicating excitement to subordinates. Openly sharing information with employees so that everyone is aware of problems and the need for change.

21. Transactional Leadership Transactional Leaders Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance.

22. 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.

23. Emotional Intelligence and Leadership Helps leaders develop a vision for their firm. Helps motivate subordinates to commit to the vision. Energizes subordinates to work to achieve the vision.