1. Chapter Ten: Leaders and Leadership
University of Bahrain
College of Business Administration
Management & Marketing Department
Chapter Ten: Leaders and Leadership
Dr.Mahmood Asad
MGT230: Chapter10

2. The Nature of Leadership
Leadership is the process by which an individual exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals.
Leader is an individual who is able to exert influence over other people to help achieve group or organizational goals.
Dr.Mahmood Asad
MGT230: Chapter10

3. The Nature of Leadership
Effective leadership increases an organization’s ability to meet all the challenges that include:
Obtain competitive advantage
Foster ethical behavior
Manage diverse workforce fairly and equitably
Dr.Mahmood Asad
MGT230: Chapter10

4. Personal Leadership Style and Managerial Tasks
A manager’s personal leadership style-is the specific ways in which a manager chooses to influence other people-shapes the way that manager approaches planning, organizing, and controlling.
Dr.Mahmood Asad
MGT230: Chapter10

5. Personal Leadership Style and Managerial Tasks
While leading is one of the four principal tasks of managing, a distinction is often made between managers and leaders.
Managers are members who establish and implement procedures and processes to ensure smooth functioning and who are accountable for goal accomplishment
Dr.Mahmood Asad
MGT230: Chapter10

6. Personal Leadership Style and Managerial Tasks
Leaders look to the future, chart the course for the organization, and attract, retain, motivate, inspire, and develop relationships with employees based on trust and mutual respect.
Servant leader is a leader who has a strong desire to serve and work for the benefit of others.
Dr.Mahmood Asad
MGT230: Chapter10

7. Power: The Key to Leadership
A key component of effective leadership is found in the power the leader has to affect other people’s behavior and get them to act in certain ways.
There are several types of power: legitimate, reward, coercive, expert, and referent power.
Dr.Mahmood Asad
MGT230: Chapter10

8. Figure 10.1: Sources of Managerial Power
Dr.Mahmood Asad
MGT230: Chapter10

9. LEGITIMATE POWER
Legitimate power is the authority that a manager has by virtue of his/her position in an organization’s hierarchy.
Dr.Mahmood Asad
MGT230: Chapter10

10. REWARD POWER
Reward power is the ability of a manager to give or withhold tangible (pay raises, bonuses, choice job assignments) and intangible (verbal praise, pat on the back, respect) rewards.
Dr.Mahmood Asad
MGT230: Chapter10

11. COERCIVE POWER
Coercive power is the ability of a manager to punish others.
Dr.Mahmood Asad
MGT230: Chapter10

12. EXPERT POWER
Expert power is the power that is based on the special knowledge, skills, and expertise that a leader possesses.
Dr.Mahmood Asad
MGT230: Chapter10

13. REFERENT POWER
Referent power is the power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty.
Dr.Mahmood Asad
MGT230: Chapter10

14. Empowerment: An Ingredient in Modern Management
Empowerment is the expansion of employees’ knowledge, tasks, and decision-making responsibilities.
Giving employees authority to make decisions
Responsible for their outcomes
Improve quality
Cut costs
Dr.Mahmood Asad
MGT230: Chapter10

15. Empowerment: An Ingredient in Modern Management
Empowerment might seem to be the opposite of effective leadership because managers are allowing subordinates to take a more active role in leading themselves.
Empowerment can contribute to effective leadership for several reasons:
Dr.Mahmood Asad
MGT230: Chapter10

16. Empowerment: An Ingredient in Modern Management
Empowerment increases a manager’s ability to get things done.
Empowerment often increases workers’ involvement, motivation, and commitment.
Empowerment gives managers more time to concentrate on their pressing concerns.
Dr.Mahmood Asad
MGT230: Chapter10

17. Trait And Behavior Models of Leaderships
Because leading is such an important process in all organizations, it has been researched for decades. Early approaches to leadership, called the trait model and the behavior model, sought to determine what effective leaders are like as people and what they do that makes them so effective.
Dr.Mahmood Asad
MGT230: Chapter10

18. The Trait Model
However, traits alone are not the key to understanding leader effectiveness. Some effective leaders do not possess all of the traits identified in this model, and some leaders who do possess them are not effective in their leadership roles.
This lack of a consistent relationship between leader traits and leader effectiveness led researchers to shift their attention away from what leaders are like (their traits) to what effective managers actually do, i.e., their behaviors.
Dr.Mahmood Asad
MGT230: Chapter10

19. The BEHAVIOR Model
Researchers at Ohio State University in the 1940s and 1950s identified two basic kinds of leader behaviors that many managers engaged in to influence their subordinates: consideration and initiating structure.
Dr.Mahmood Asad
MGT230: Chapter10

20. The BEHAVIOR Model (1) Consideration
Leaders engage in consideration when they show their subordinates that they trust, respect, and care about them. Managers who truly look out for the well-being of their subordinates and do what they can to help subordinates feel good and enjoy their work perform consideration behaviors.
Dr.Mahmood Asad
MGT230: Chapter10

21. The BEHAVIOR Model (2) Initiating Structure
Leaders engage in initiating structure when they make sure that work gets done, and the organization is effective and efficient. Assigning tasks to individuals or work groups, making schedules, encouraging adherence to rules are examples of initiating structure.
Dr.Mahmood Asad
MGT230: Chapter10

22. The BEHAVIOR Model
Initiating structure and consideration are independent leader behavior. Leaders can be high on both, low on both, or high on one and low on the other.
Initiating
structure
Consideration
Dr.Mahmood Asad
MGT230: Chapter10

23. The BEHAVIOR Model
Researchers at the University of Michigan identified two categories of leadership behaviors, employee-centered behaviors and job-oriented behaviors, that roughly correspond to consideration and initiating structure, respectively.
Dr.Mahmood Asad
MGT230: Chapter10

24. The BEHAVIOR Model
Paul Hersey and Kenneth Blanchard’s model focuses on supportive behaviors (similar to consideration) and task-oriented behaviors (similar to initiating structure).
According to these researchers, leaders need to consider the nature of their subordinates when trying to determine the extent to which they should perform these two behaviors.
Dr.Mahmood Asad
MGT230: Chapter10

25. The BEHAVIOR Model
Research has found that the relationship between performance of consideration and initiating structure behaviors and leader effectiveness is not clear. Some leaders are effective even though they do not perform consideration or initiating structure behavior, while other leaders who perform both are ineffective.
Dr.Mahmood Asad
MGT230: Chapter10

26. CONTINGENCY MODELS OF LEADERSHIP
Contingency models of leadership take into account the situation or context within which leadership occurs.
They propose that whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he or she does, and the situation in which leadership takes place.
Dr.Mahmood Asad
MGT230: Chapter10

27. Fiedler’s Contingency Model
Leader Style
Fiedler uses the term leader style to refer to a manager’s characteristic approach to leadership and identified two basic leader styles: relationship-oriented and task-oriented. All managers can be described as having one style or the other.
Dr.Mahmood Asad
MGT230: Chapter10

28. Fiedler’s Contingency Model
Leader Style
Relationship-oriented leaders are primarily concerned with developing good relationships with their subordinates and being liked by them. They get the job done while focusing on maintaining high-quality interpersonal relationships with subordinates.
Dr.Mahmood Asad
MGT230: Chapter10

29. Fiedler’s Contingency Model
Leader Style
Task-oriented leaders are primarily concerned with ensuring that subordinates perform at a high level. Task-oriented managers focus on task accomplishment and making sure the job gets done.
Dr.Mahmood Asad
MGT230: Chapter10

30. Fiedler’s Contingency Model
Leader Style
According Fielder, leadership style is an enduring characteristic. Managers cannot change their style, nor can they adopt different styles in different kinds of situations.
Dr.Mahmood Asad
MGT230: Chapter10

31. Fiedler’s Contingency Model
Situational Characteristics
Fielder identified three situational characteristics that are important determinants of how favorable a situation is for leading. They are:
leader-member relations
task structure
position power
Dr.Mahmood Asad
MGT230: Chapter10

32. Fiedler’s Contingency Model
Situational Characteristics
Leader-member relations is the extent to which followers like, trust, and are loyal to their leader. Situations are more favorable for leading when leader-member relationships are good.
Dr.Mahmood Asad
MGT230: Chapter10

33. Fiedler’s Contingency Model
Situational Characteristics
Task structure is the extent to which the work to be performed is clear-cut so that the leader’s subordinates know what needs to be accomplished and how to go about doing it. When task structure is high, situations are favorable for leading. When task structure is low, the situation is unfavorable for leading.
Dr.Mahmood Asad
MGT230: Chapter10

34. Fiedler’s Contingency Model
Situational Characteristics
Position power is the amount of legitimate, reward, and coercive power a leader has by virtue of his or her position in an organization. Leadership situations are more favorable for leading when position power is strong.
Dr.Mahmood Asad
MGT230: Chapter10

35. Fiedler’s Contingency Model
Combining Leader Style and the Situation
By taking all possible combinations of these factors, Fiedler identified eight leadership situations which vary in their favorability for leading. Based on extensive research, he determined that relationship-oriented leaders are most effective in moderately favorable situations and task-oriented leaders are most effective in very favorable or very unfavorable situations.
Dr.Mahmood Asad
MGT230: Chapter10

36. Dr.Mahmood Asad
MGT230: Chapter10

37. Fiedler’s Contingency Model
Putting the Contingency Model into Practice
According to Fiedler, managers must be placed in leadership situations that fit their style or the situation must need to be changed to suit the manager’s style, if he or she is to be effective.
Research studies support some aspects of Fiedler’s model but also suggest that it needs some modifications.
Dr.Mahmood Asad
MGT230: Chapter10