1. 13Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. LeadershipLeadership

2. © Copyright McGraw-Hill. All rights reserved.13–2 Learning Objectives After studying the chapter, you should be able to:After studying the chapter, you should be able to:  Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders.  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.  Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.

3. © Copyright McGraw-Hill. All rights reserved.13–3 Learning Objectives (cont’d)  Describe what transformational leadership is, and explain how managers can engage in it.  Characterize the relationship between gender leadership.

4. © Copyright McGraw-Hill. All rights reserved.13–4 Chapter Outline The Nature of LeadershipThe Nature of Leadership  Personal Leadership Style and Managerial Tasks  Leadership Styles Across Cultures  Power: The Key to Leadership  Empowerment: An Ingredient in Modern Management Trait and Behavior Models of LeadershipTrait and Behavior Models of Leadership  The Trait Model  The Behavior Model

5. © Copyright McGraw-Hill. All rights reserved.13–5 Chapter Outline (cont’d) Contingency Models of LeadershipContingency Models of Leadership  Fiedler’s Contingency Model  House’s Path-Goal Theory  The Leader Substitutes  Bringing It All Together Transformational LeadershipTransformational Leadership  Being a Charismatic Leader  Stimulating Subordinates Intellectually  Engaging in Developmental Considerations  Distinction Between Transformational and Transactional Leadership

6. © Copyright McGraw-Hill. All rights reserved.13–6 Chapter Outline (cont’d) Transformational Leadership (cont’d)Transformational Leadership (cont’d)  Distinction Between Transformational and Transactional Leadership Gender and LeadershipGender and Leadership Emotional Intelligence and LeadershipEmotional Intelligence and Leadership

7. © Copyright McGraw-Hill. All rights reserved.13–7 The Nature of Leadership LeadershipLeadership  The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. Effective leadership increases the firm’s ability to meet new challenges.Effective leadership increases the firm’s ability to meet new challenges. LeaderLeader  An individual who is able to exert influence over other people to help achieve group or organizational goals

8. © Copyright McGraw-Hill. All rights reserved.13–8 The Nature of Leadership Personal Leadership StylePersonal Leadership Style  The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management. Leaders may delegate and support subordinates, while others are very authoritarian.Leaders may delegate and support subordinates, while others are very authoritarian.  The challenge is for managers at all levels to develop an effective personal management style.

9. © Copyright McGraw-Hill. All rights reserved.13–9 Leadership Across Cultures Leadership styles may vary among different countries or 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. U.S. firms often focus on short-run efforts and results.U.S. firms often focus on short-run efforts and results. Japanese firms have a longer-run perspective.Japanese firms have a longer-run perspective. European firms fall somewhere between the U.S. and Japanese orientations.European firms fall somewhere between the U.S. and Japanese orientations.

10. © Copyright McGraw-Hill. All rights reserved.13–10 Sources of Managerial Power Figure 13.1

11. © Copyright McGraw-Hill. All rights reserved.13–11 Power: The Key to Leadership Legitimate PowerLegitimate Power  The authority that a manager has by virtue of his or her position in the firm. Example: the power to hire or fire employees.Example: the power to hire or fire employees. Reward PowerReward Power  The ability of a manager to give or withhold tangible and intangible rewards. Example: awarding pay raises or providing verbal praise for good performance.Example: awarding pay raises or providing verbal praise for good performance.  Effective managers use reward power to signal to employees that they are doing a good job.

12. © Copyright McGraw-Hill. All rights reserved.13–12 Power: The Key to Leadership (cont’d) Coercive PowerCoercive Power  The ability of a manager to punish others. Examples: verbal reprimand, pay cuts, and dismissalExamples: verbal reprimand, pay cuts, and dismissal Limited in effectiveness and application; can have serious negative side effects.Limited in effectiveness and application; can have serious negative side effects. Expert PowerExpert Power  Power that is based on special knowledge, skills, and expertise that the leader possesses. First-line and middle managers have the most expert power; most often consists of technical ability.First-line and middle managers have the most expert power; most often consists of technical ability.

13. © Copyright McGraw-Hill. All rights reserved.13–13 Power: The Key to Leadership (cont’d) Referent PowerReferent Power  Power that comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration.  Usually held by and available for use by likable managers who are concerned about their workers.

14. © Copyright McGraw-Hill. All rights reserved.13–14 Empowerment: An Ingredient in Modern Management EmpowermentEmpowerment  The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes.  Empowerment helps managers: Get workers involved in the decisions.Get workers involved in the decisions. Increase worker commitment and motivation.Increase worker commitment and motivation. Have time to focus on other issues.Have time to focus on other issues. Effective managers usually empower substantial authority to workers.Effective managers usually empower substantial authority to workers.

15. © Copyright McGraw-Hill. All rights reserved.13–15 Leadership Models Trait ModelTrait Model  Attempted to identify personal characteristics that cause for effective leadership. Research shows that certain personal “traits” do appear to be connected to effective leadership.Research shows that certain personal “traits” do appear to be connected to effective leadership. Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.

16. © Copyright McGraw-Hill. All rights reserved.13–16 Leadership Models (cont’d) Behavioral ModelBehavioral Model  Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates: Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinatesConsideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective. Both behaviors are independent; managers can be high or low on both behaviors.Both behaviors are independent; managers can be high or low on both behaviors.

17. © Copyright McGraw-Hill. All rights reserved.13–17 Contingency Models of Leadership Fiedler’s ModelFiedler’s Model  Effective leadership is contingent on both the characteristics of the leader and of the situation.  Leader style is the enduring, characteristic approach to leadership that a manager uses and does not readily change. Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them.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 so the job gets done.Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done.

18. © Copyright McGraw-Hill. All rights reserved.13–18 Fiedler’s Model Situation CharacteristicsSituation Characteristics  How favorable a situation is for leading to occur.  Leader-member relations—determines how much workers like and trust their leader.  Task structure—the extent to which workers tasks are clear-cut; clear issues make a situation favorable for leadership.  Position Power—the amount of legitimate, reward, and coercive power leaders have due to their position. When positional power is strong, leadership opportunity becomes more favorable.

19. © Copyright McGraw-Hill. All rights reserved.13–19 Fiedler’s Contingency Theory of Leadership Figure 13.2

20. © Copyright McGraw-Hill. All rights reserved.13–20 Fiedler’s Model in Application Combines considerations of leader-member relations, task structure, and position power to identify leadership situations.Combines considerations of leader-member relations, task structure, and position power to identify leadership situations.  Identifies situations where given types of managers might perform best.  Leader style is a characteristic managers cannot change; managers will be most effective when: they are placed in situations that suit their leader style.they are placed in situations that suit their leader style. the situation can be changed to fit the manager’s leader style.the situation can be changed to fit the manager’s leader style.

21. © Copyright McGraw-Hill. All rights reserved.13–21 House’s Path-Goal Theory A contingency model of leadership proposing the effective leaders can motivate subordinates by: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.

22. © Copyright McGraw-Hill. All rights reserved.13–22 Motivating with Path-Goal Path-Goal identifies four leadership behaviors:Path-Goal identifies four leadership behaviors:  Directive behaviors: set goals, assign tasks, show how to do things.  Supportive behavior: look out for the worker’s best interest.  Participative behavior: give subordinates a say in matters that affect them.  Achievement-oriented behavior: Setting very challenging goals, believing in worker’s abilities. Which behavior to be used depends on the nature of the subordinates and the tasks.Which behavior to be used depends on the nature of the subordinates and the tasks.

23. © Copyright McGraw-Hill. All rights reserved.13–23 The Leader Substitutes Model Leadership SubstituteLeadership Substitute  Acts in the place of a leader and makes leadership unnecessary. Possible substitutes can be found in: Characteristics of the subordinates: their skills, experience, motivation.Characteristics of the subordinates: their skills, experience, motivation. Characteristics of context: the extent to which work is interesting and fun.Characteristics of context: the extent to which work is interesting and fun.  Worker empowerment or self-managed work teams reduce leadership needs.  Managers should be aware that they do not always need to directly exert influence over workers.

24. © Copyright McGraw-Hill. All rights reserved.13–24 Transformational Leadership Leadership that: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.

25. © Copyright McGraw-Hill. All rights reserved.13–25 Being a Charismatic Leader Charismatic LeaderCharismatic Leader  An enthusiastic, self-confident transformational leader able to clearly communicate his or her vision of how good things could be by: Being excited and clearly communicating excitement to subordinates.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.Openly sharing information with employees so that everyone is aware of problems and the need for change. Empowering workers to help with solutions.Empowering workers to help with solutions. Engaging in the development of employees by working hard to help them build skills.Engaging in the development of employees by working hard to help them build skills.

26. © Copyright McGraw-Hill. All rights reserved.13–26 Transactional Leadership Transactional LeadersTransactional Leaders  Use their reward and coercive powers to encourage high performance—they exchange rewards for performance and punish failure.  Push subordinates to change but do not seem to change themselves.  Do not have the “vision” of the transformational leader.

27. © Copyright McGraw-Hill. All rights reserved.13–27 Gender and Leadership The number of women managers is rising but is still relatively low in the top levels of management.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. Research indicates that actually there is no gender- based difference in leadership effectiveness.Research indicates that actually there is no gender- based difference in leadership effectiveness. Women are seen to be more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills.Women are seen to be more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills.

28. © Copyright McGraw-Hill. All rights reserved.13–28 Emotional Intelligence and Leadership The Moods of Leaders:The Moods of Leaders:  Affect their behavior and effectiveness as leaders.  Affect the performance of their subordinates. Emotional IntelligenceEmotional 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.