1. The Nature and Importance of Leadership
CHAPTER ONE
The Nature and Importance
of Leadership

2. Learning Objectives
Explain the meaning of leadership and how it differs from management.
Describe how leadership influences organizational performance.
Pinpoint several important leadership roles.
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3. Learning Objectives
Identify the major satisfactions and frustrations associated with the leadership role.
Describe a framework for understanding leadership.
Recognize how leadership skills are developed.
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4. Leadership
The ability to inspire confidence and support among the people who are needed to achieve organizational goals
May be considered a long-term relationship, or partnership, between leaders and group members
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5. Partnership
The power between leader and group members is approximately balanced
Four things necessary in a partnership:
Exchange of purpose
A right to say no
Joint accountability
Absolute honesty
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6. Leadership versus Management
Leadership deals with:
Change
Inspiration
Motivation
Influence
Management deals with:
Planning
Organizing
Directing
Controlling
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7. Leadership Matters The results of one study showed
transactional leadership was not significantly related to performance
charismatic leadership was slightly, positively related to performance
in an uncertain environment, charismatic leadership was more strongly related to performance
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8. Attribution Theory The process of attributing causality to events
To simplify and understand complex social systems of human interaction, people interpret events in human terms
Most organizational successes are attributed to heroic leaders
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9. Leadership Does Not Matter
Three major arguments against the importance of leadership include:
Substitutes for leadership
Leader irrelevance
Complexity theory
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10. Substitutes for Leadership
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11. Leader Irrelevance
Situational factors, outside the leader’s control, have the largest impact on outcomes
High-level leaders have unilateral control over only a few resources, and the control over these resources is limited by obligations to stakeholders
Firms choose new leaders whose values and behaviors are similar to previous leaders
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12. Complexity Theory
Organizations are complex systems that cannot be explained by the usual rules of nature
Leaders and managers can do little to alter the course of the complex organizational system
A company’s fate is determined by factors outside the leader/manager’s control
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13. Leadership Roles Figurehead Spokesperson Negotiator
Coach and motivator
Team builder
Team player
Technical problem solver
Entrepreneur
Strategic planner
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14. Sources of Leader Satisfaction
A feeling of power and prestige
A chance to help others grow and develop
High income
Respect and status
Good opportunities for advancement
A feeling of “being in on” things
An opportunity to control resources
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15. Leader Frustrations Too much uncompensated overtime
Too many “headaches”
Not enough authority to carry out responsibility
Loneliness
Too many problems involving people
Too much organizational politics
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16. A Framework for Understanding Leadership
Leader characteristics and traits
Leader behavior and style
Group member characteristics
Internal and external environment
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17. Summary Leading is a major part of a manager’s job
Although some research supports the view that the leader affects organizational performance, the concepts of substitutes for leadership, leader irrelevance, and complexity theory suggest that leadership matters little
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18. Summary Leadership involves carrying out at least nine different roles
There are many sources of both satisfaction and frustration to leaders
Leadership is a function of leader characteristics and traits, leader behavior and style, group member characteristics, and the internal and external environments
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