1. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Leaders and Leadership Chapter Ten

2. 10-2 Learning Objectives LO10-1 Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. LO10-2 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. 10-3 Learning Objectives (cont.) LO10-3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations LO10-4 Describe what transformational leadership is, and explain how managers can engage in it LO10-5 Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness.

4. 10-4 The Nature of Leadership  Leadership  The process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals

5. 10-5 The Nature of Leadership  Leader  An individual who is able to exert influence over other people to help achieve group or organizational goals

6. 10-6 The Nature of Leadership  Personal Leadership Style  The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management.  The challenge is for managers at all levels to develop an effective personal management style

7. 10-7 The Nature of Leadership  Servant leaders  leader who has a strong desire to serve and work for the benefit of others  shares power with followers  strives to ensure that followers’ most important needs are met

8. 10-8 Discussion Question What culture has the most effective leadership style? A. Japanese B. European C. United States D. Middle Eastern

9. 10-9 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

10. 10-10 Sources of Managerial Power Figure 10.1

11. 10-11 Question? What type of power is the ability of a manager to give or withhold tangible and intangible rewards? A. Reward B. Coercive C. Expert D. Legitimate

12. 10-12 Power: The Key to Leadership  Legitimate Power  The authority that a manager has by virtue of his or her position in an organizational hierarchy  Reward Power  The ability of a manager to give or withhold tangible and intangible rewards

13. 10-13 Power: The Key to Leadership  Coercive Power  The ability of a manager to punish others  Expert Power  Power that is based on special knowledge, skills, and expertise that a leader possesses

14. 10-14 Power: The Key to Leadership  Referent Power  Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty.

15. 10-15 Empowerment: An Ingredient in Modern Management  Empowerment  the process of giving employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs

16. 10-16 Empowerment: An Ingredient in Modern Management Empowerment:  Increases a manager’s ability to get things done  Increases workers’ involvement, motivation, and commitment  Gives managers more time to concentrate on their pressing concerns

17. 10-17 Leadership Models  Trait Model  Focused on identifying personal characteristics that cause effective leadership.  Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.

18. 10-18 Question? Which leadership model identifies the two basic types of behavior that many leaders engaged in to influence their subordinates? A. Fiedler B. Path-Goal C. Behavioral D. Trait

19. 10-19 The Behavior Model  Behavioral Model  Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates

20. 10-20 The Behavior Model  Consideration  behavior indicating that a manager trusts, respects, and cares about subordinates  Initiating structure  behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective

21. 10-21 Contingency Models of Leadership  Contingency Models  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

22. 10-22 Contingency Models of Leadership  Fiedler’s Model  Personal characteristics can influence leader effectiveness  Leader style is the manager’s characteristic approach to leadership

23. 10-23 Contingency Models of Leadership  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 and focus on task accomplishment

24. 10-24 Fiedler’s Model  Leader–member relations  The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading.  Task structure  the extent to which workers tasks are clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it

25. 10-25 Fiedler’s Model  Position Power  the amount of legitimate, reward, and coercive power leaders have by virtue of their position  Leadership situations are more favorable for leading when position power is strong.

26. 10-26 Fiedler’s Contingency Theory of Leadership Figure 10.2

27. 10-27 House’s Path-Goal Theory 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.

28. 10-28 House’s Path-Goal Theory  Directive behaviors  setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance  Supportive behavior  expressing concern for subordinates and looking out for their best interests

29. 10-29 House’s Path-Goal Theory  Participative behavior  giving subordinates a say in matters that affect them  Achievement- oriented behavior  Setting very challenging goals, believing in worker’s abilities

30. 10-30 The Leader Substitutes Model  Leadership Substitute  A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary

31. 10-31 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.

32. 10-32 Transformational Leadership  Transformational leadership  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

33. 10-33 Being a Charismatic Leader  Charismatic Leader  An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be

34. 10-34 Stimulating Subordinates Intellectually  Intellectual Stimulation  Behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader’s vision

35. 10-35 Engaging in Developmental Consideration  Developmental Consideration  Behavior a leader engages in to support and encourage followers and help them develop and grow on the job

36. 10-36 Transactional Leadership  Transactional Leaders  Leaders that motivate subordinates by rewarding them for high performance and reprimanding them for low performance

37. 10-37 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.  Men are stereotypically viewed as being directive and focused on task accomplishment.

38. 10-38 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

39. 10-39 Emotional Intelligence and Leadership  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

40. 10-40 Video: Japan CEO  Why does the CEO of Japan Airlines take a bus to work?  What style of leadership does, CEO Naruka Nishimatsu, exhibit to his employees?