2. Leadership, Influence, and Communication in Business
Chapter Six
Leadership, Influence, and Communication in Business
© The McGraw-Hill Companies, Inc., All Rights Reserved.
McGraw-Hill/Irwin
Introduction to Business

3. Learning Objectives
Appreciate the way a manager’s ability to effectively lead, influence, and persuade other people influences a company’s efficiency, effectiveness, and profitability.
Identify the five sources of a leader’s power and understand how leadership involves the effective use of power to influence other people.
Differentiate between four main approaches to leadership and recognize that effective leadership involves matching a leadership approach to the characteristics of employees and the work situation.

4. Learning Objectives
Identify five characteristics of effective leaders.
Understand the vital role communication plays in influencing others in a business organization and describe a model of persuasive communication.
Define organizational politics and understand how political tactics are used to influence and persuade others.

5. Business Leadership Leadership
the use of one’s personality, beliefs, values, social skills, knowledge, and power to influence other people’s thoughts feelings and behaviors

6. Business Leadership Effective leader
a person who can persuade his subordinates to work hard and perform at high levels

7. Question?
What is the ability of one person to make other people do something that they would not have otherwise done?
Leadership
Expertise
Power
Clout
The correct answer is “C” – power. See next slide.

8. Sources of a Leader’s Power
the ability of one person to make other people or groups do something that they would not have otherwise done

9. Sources of a Leader’s Power
Figure 6.1

10. Question?
What type of power is a leader’s ability to sanction employees who fail to meet job and company requirements?
Legitimate power
Reward power
Coercive power
Referent power
The correct answer is “C” – coercive power. See slide 6-12.

11. Sources of a Leader’s Power
Legitimate power
the rightful authority to direct and control employees’ activities
Reward power
a leader’s ability to recognize and acknowledge employees who perform their jobs in a way that meets or exceeds the requirements of their job or company

12. Sources of a Leader’s Power
Coercive power
a leader’s ability to sanction or punish employees who fail to meet job and company requirements
Incentive system
a system of rewards and sanctions that shapes, influences, and controls the way employees behave at work

13. Sources of a Leader’s Power
Expert power
a person’s recognized expertise or superior skill in a particular functional area of business
Referent power
a leader’s ability to influence and persuade other people because of personal qualities that make them attractive to others and effective in social situations

14. Sources of a Leader’s Power
Charismatic leader
an exceptionally effective leader whose referent and expert power results in followers perceiving them as someone who personifies a company and what it stands for
Read a short biography of a charismatic leader who changed an industry

15. Leader Power and Employee Behavior and Attitudes
Leaders use their power to influence and control the way employees perform their jobs and work to achieve a company’s mission
Effective leadership results when managers use their power in ways that improve specific kinds of behaviors and attitudes

16. Important Work Behaviors and Attitudes
Figure 6.2

17. The Contingency Theory of Leadership
the theory that effective leadership occurs when managers adopt a leadership approach that matches the characteristics of their employees and the work setting

18. The Contingency Theory of Leadership
Figure 6.3

19. Four Types of Leadership Approaches
Directive leadership
Supportive leadership
Participative leadership
Achievement-oriented leadership

20. Four Approaches to Leadership
Figure 6.4

21. Types of Contingencies
Employee contingencies
Level of occupational skills, knowledge, and experience employees need to perform their jobs
A person’s need for achievement and their locus of control

22. Contingency Factors and the Effective Approach to Leadership
Figure 6.5

23. Employee Contingencies
Need for achievement
a person’s desire or drive to excel at a certain activity
Internal locus of control
believe they are in control of their situation
External locus of control
believe how well they perform depends much more on the nature of the situation they are in and factors out of their control

24. Types of Contingencies
Work-situation contingencies
Routine vs. non-routine jobs
Level of cohesiveness present in a work group

25. Five Characteristics of Effective Leaders
Figure 6.6

26. Characteristics of Effective Leaders
Intuition, intelligence, and cognitive ability
Energy, drive, and a need for achievement
Self-confident and internal locus of control
Ethics and moral integrity
Emotional intelligence and empathy

27. Influence, Persuasion, and Communication
the transmission and sharing of information between people or groups so that each party understands what the other is trying to achieve

28. Influence, Persuasion, and Communication
Persuasive communication
the attempt by a party to share information with another party in order to get them to understand their objectives and work toward them

29. Types of Situations for Persuasive Communication
Figure 6.7

30. Becoming a Persuasive Communicator
Sender
the party that transmits a message or other information to a receiver
Receiver
the party that receives the information transmitted by a sender

31. A Model of Persuasive Communication
Figure 6.8

32. Becoming a Persuasive Communicator
Characteristics of the sender
Active listening
Content of the message
Method of communication
Characteristics of the receiver

33. Characteristics of the Sender
Credible
Possess good speaking and listening skills

34. Active Listening
Pay attention not only to the words that are being said but also to the many other things that are going on in the communication process
Nonverbal cues

35. Methods of Communication
Figure 6.9

36. Characteristics of the receiver
Devil’s advocate
someone who tries to convince others that an idea or plan is flawed

37. The Political Process in Business Organizations
Organizational politics
the activities managers and employees engage in to increase their power and persuade others to achieve their personal goals and objectives

38. The Political Process in Business Organizations
Political tactics
the specific strategies managers and employees engage in to gain the support of an organization’s members

39. Types of Political Tactics
Figure 6.10

40. Political Tactics
The attack-and-blame versus make-everyone-a-winner tactic
The reduce-uncertainty and use-objective-information tactic
The be-irreplaceable or occupy-a-central-position tactic
The building-coalitions-and-alliances tactic

41. Video: Sylvia Rhone of Electra Records
The music industry has been traditionally characterized as a white-male dominated business. That had been largely true until Sylvia Rhone was elevated to the position of Chair and CEO of Elektra Records.
What type of leader do you think Sylvia Rhone is?
Discussion Questions:
How does Sylvia Rhone reduce uncertainty?
Answer: It appears that she is a risk taker with well-honed instincts. She is not afraid to make mistakes. Uncertainty can be a threat for executives in that it can reduce performance. In Rhone’s case, however, her ability to act decisively appears to minimize uncertainty given her high level of performance while at Elektra Records.
What type of leader do you think Sylvia Rhone is?
Answer: Based on the interviews with others in the music industry, it appears that Rhone would be considered a charismatic leader. She takes risks, has great intuitive skills, and has been highly successful. There seems to be an excitement around her as others speak about her abilities and effectiveness. Further, she rose to the level of CEO from that of a $12,000 secretarial position.
3. Of the four types of leadership approaches, which is most applicable to Rhone?
Answer: The four principal types of leadership approaches are (1) directive, (2) supportive, (3) participative, and (4) achievement-oriented. Based on the information provided in the video, one would have to conclude that Rhone is achievement-oriented. This can be supported by her rise to Chair and CEO and the financial performance of the company during her tenure.