1. Handout #1 The Nature of Leadership

2. Learning Objectives
Explain 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.

3. Learning Objectives
Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations.
Describe what transformational leadership is, and explain how managers can engage in it.
Characterize the relationship between gender leadership.

4. The Nature of Leadership
The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals.
Management
- Use of authority inherent in designated formal rank to obtain compliance from organizational members.

5. Question?
What is an individual who is able to exert influence over other people to help achieve group or organizational goals?
Manager
Leader
Chief
Organizer
The correct answer is “B” – leader. See next slide

6. The Nature of Leadership
An individual who is able to exert influence over other people to help achieve group or organizational goals

7. The Nature of Leadership
Personal Leadership Style
The challenge is for managers at all levels to develop an effective personal management style.
Leaders may delegate and support subordinates, while others are very authoritarian.

8. The Nature of Leadership
Distinction between managers and leaders
Managers establish and implement procedures to ensure smooth functioning
Leaders look to the future and chart the course for the organization

9. Leader versus Manager Qualities
SOUL
Visionary
Passionate
Creative
Flexible
Inspiring
Innovative
Courageous
Imaginative
Experimental
Initiates change
Personal power
MIND
Rational
Consulting
Persistent
Problem solving
Tough-minded
Analytical
Structured
Deliberate
Authoritative
Stabilizing
Position power
Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12

10. Leadership Across 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.

11. Sources of Managerial Power
Figure 1

12. Power: The Key to Leadership
Legitimate 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.

13. Power: The Key to Leadership
Reward Power
The ability of a manager to give or withhold tangible and intangible rewards.
Effective managers use reward power to signal to employees that they are doing a good job.
Example: awarding pay raises or providing verbal praise for good performance.

14. Power: The Key to Leadership
Coercive Power
The ability of a manager to punish others.
Examples: verbal reprimand, pay cuts, and dismissal
Limited in effectiveness and application; can have serious negative side effects.

15. 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

16. Power: The Key to Leadership
Referent Power
Power that comes from subordinates’ and coworkers’ respect , admiration, and loyalty
Power based on identification with a person who has desirable resources or personal traits.

17. Empowerment: An Ingredient in Modern Management
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

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

19. Handout #2
Leadership Models

20. Leadership Models Trait Model
Attempt to identify personal characteristics that cause for effective leadership.
Research shows that certain personal characteristics 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.

21. Traits Theories of Leadership
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.
Leadership Traits:
Ambition and energy
The desire to lead
Honest and integrity
Self-confidence
Intelligence
High self-monitoring
Job-relevant knowledge

22. Leadership Models Behavioral Model
Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates
Trait theory: Leaders are born, not made.
Behavioral theory: Leadership traits can be taught.

23. Leadership Models Behavioral Model
Consideration: leaders show subordinates they trust, respect, and care about them
Managers look out for the well-being of their subordinates
Do what they can to help subordinates feel good and enjoy the work they perform
Both behaviors are independent; managers can be high or low on both behaviors.

24. Leadership Models Behavioral Model
Initiating structure: leaders take steps to make sure that work gets done, subordinates perform their work acceptably, and the organization is efficient and effective
Managers assign tasks to groups and let subordinates know what is expected of them

25. Leadership Grid High Concern for People Low Low Concern for Production
1,9
Country Club Management
Thoughtful attention to the
needs of people for satisfying
relationships leads to a com-
fortable, friendly organization
atmosphere and work tempo.
9,9
Team Management
Work accomplishment is from
committed people; interdependence
through a “common stake” in
organization purpose leads to
relationships of trust and respect.
5,5
Middle-of-the-Road Management
Adequate organization performance is
possible through balancing the necessity
to get out work with maintaining morale of
people at a satisfactory level.
Concern for People
Impoverished Management
Exertion of minimum effort
to get required work done
is appropriate to sustain
organization membership.
1,1
Authority-Compliance
Efficiency in operations results
from arranging conditions of
work in such a way that human
elements interfere to a minimum
degree ,1
Low
Low
Concern for Production
High
Figure 1

26. The Leadership Grid (Blake and Mouton)
Figure 2

27. Black and Mouton’s Managerial and leadership grid

28. Contingency Models of Leadership
What makes a manager an effective leader in one situation is not necessarily what that manager needs to be equally effective in another situation

29. Contingency Models of Leadership
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

30. Contingency Models of Leadership
Fiedler’s Model
Effective leadership is contingent on both the characteristics of the leader and of the situation.

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

32. Fiedler’s Model 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

33. Fiedler’s Model Situation Characteristics
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.

34. Fiedler’s Contingency Theory of Leadership
Figure 3

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

36. Question?
Which leadership behavior gives subordinates a say in matters that affect them?
Directive behavior
Supportive behavior
Participative behavior
Achievement-oriented behavior
The correct answer is “C” – participative behavior. See slide 14-33

37. Path-Goal Theory Path-Goal Theory
The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

38. Path-Goal Theory Leaders Behaviors
Supportive leadership:
Leader behavior that shows concern for subordinates
Open, friendly, and approachable
Creates a team climate
Treats subordinates as equals
Directive leadership:
Tells subordinates exactly what they are supposed to do
Planning, making schedules, setting performance goals, and behavior standards
Participative leadership:
Consults with his or her subordinates about decisions
Achievement-oriented leadership:
Sets clear and challenging goals for subordinates
Behavior stresses high-quality performance

39. Motivating with Path-Goal
Which behavior to be used depends on the nature of the subordinates and the kind of work they do

40. Path-Goal Situations & Preferred Leader Behavior
Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981),
Figure 4

41. Path Goal Theory Figure 5
Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985),
Figure 5

42. Discussion Question Which leadership model is the most effective?
Trait model
Behavior model
Fiedler’s model
Path-goal theory
There is no one best answer. Students should be able to discuss the differences and appropriateness of the different models.

43. The Leader Substitutes Model
Leadership Substitute
Acts in the place of a leader and makes leadership unnecessary.
Worker empowerment or self-managed work teams reduce leadership needs.

44. The Leader Substitutes Model
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.

45. Transformational Leadership
Leadership that:
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

46. Transformational Leadership
Makes subordinates aware of their own needs for personal growth, development, and accomplishment
Motivates workers to work for the good of the organization, not just for their own personal gain or benefit

47. Being a Charismatic Leader
An enthusiastic, self-confident transformational leader able to clearly communicate his vision of how good things could be

48. Being a Charismatic Leader
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.
Empowering workers to help with solutions.
Engaging in the development of employees by working hard to help them build skills.

49. Intellectual Stimulation
Manager leads subordinates to view problems as challenges that they can and will meet and conquer
Manager engages and empowers subordinates to take personal responsibility for helping to solve problems

50. Developmental Consideration
Manager supports and encourages subordinates, giving them opportunities to enhance their skills and capabilities and to grow and excel on the job

51. Transactional Leadership
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.

52. Transformational Leadership Elements
Create a strategic vision
Depiction of company’s attractive future
motivates and bonds employees
Leader champions the vision
Communicate the vision
Frame message around a grand purpose
Create a shared mental model of the future
Use symbols and metaphors.

53. Transformational Leadership Elements (con’t)
Model the vision
Walk the talk
Symbolize/demonstrate the vision through behavior
Builds employee trust in the leader
Build commitment to the vision
Increased through communicating and modeling the vision
Increased through employee involvement in shaping the shared vision

54. Transformational vs. Transactional Leaders
Transformational leaders
Leading -- changing the organization to fit environment
Change agents
Transactional leaders
Managing – achieving current objectives more efficiently
link job performance to rewards
ensure employees have necessary resources
Relates to contingency leadership theories (e.g. path-goal)

55. 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.

56. Gender and Leadership
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.(Participative leadership style is used more often by female leaders.)

57. Gender Issues in Leadership
Male and female leaders have similar task- and people-oriented leadership.
Evaluating female leaders
Still receive negative evaluations as leader due to prototypes and gender stereotypes
They are good at emerging leadership styles (coaching, teamwork)

58. Emotional Intelligence and Leadership
The Moods of Leaders:
Groups whose leaders experienced positive moods had better coordination
Groups whose leaders experienced negative moods exerted more effort

59. Emotional Intelligence and Leadership
refers to the ability to perceive, control and evaluate emotions.
Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic.

60. The importance of Emotional 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.

61. End of Handout 2 Leadership The Fugitive
Richard Kimble (Harrison Ford) has been convicted of the murder of his wife. En route to prison the bus is involved in an accident and some prisoners escape, including Kimble. Agent Sam Gerard (Tommy Lee Jones) of the U.S. Marshals arrives on scene to coordinate the search for the fugitives. Kimble returns to Chicago to find his wife’s real killer and Gerard searches for Kimble and the truth.
In this scene, Gerard arrives on the scene of the accident and takes over the investigation.
What type of leader is Gerard?
Is Gerard an effective leader?
Is Gerard motivated by affiliation, power or achievement?