1. CHAPTER 14 LEADERSHIP

2. MANAGEMENT IN ACTION: LEADERSHIP n Leadership defined as: u process of influencing individuals and groups u in setting and achieving goals n Influence is defined as: u power to sway other people to one’s will n Leadership involves three variables u the leader, those being led, and circumstances in which leadership is exercised

3. LEADERSHIP TRAITS, SKILLS, AND BEHAVIORS n Traits--personal characteristics of effective leaders n Skills--competencies and capabilities possessed by effective leaders n Behaviors--outward personifications of traits and skills n Refer to Exhibits 13.1 and 13.2 for a rich description of each category

4. MANAGEMENT VERSUS LEADERSHIP n Managers plan and budget where leaders establish direction n Managers organize and staff where leaders align people n Managers control and solve problems where leaders motivate and inspire

5. POWER AND LEADERSHIP n Power gives people the ability to exert influence over others n Power can be economic, psychological, and/or cultural n Sources of power include: Positional/Legitimate; Functional/Expert; or Charismatic/Referent

6. LEADERSHIP STYLE n Leadership Style defined as: u perceived and real approaches and behaviors to situations u managers use to influence and direct others n Leadership Styles result from u One’s Traits, Skills, Philosophies, Values, Perceptions, Attitudes, Decision-Making Styles, Functional Expertise, and the Work Environment

7. LEADERSHIP STYLE n Positive versus Negative Motivation n Decision-Making Styles u autocratic--participate--free-rein styles n Task Orientation versus Employee Orientation

8. THEORIES OF SITUATION LEADERSHIP n Fiedler’s Contingency Model n House and Mitchell’s Path-Goal Theory n Hersey and Blanchard’s Life-Cycle Theory

9. FIEDLER’S CONTINGENCY MODEL n Posits that the most appropriate leadership style depends on the situation (contingency) at hand n Task or Employee focus based on the interaction of three situation variables: leader-member relations; task structure; and leader position power

10. HOUSE AND MITCHELL’S PATH-GOAL THEORY n Posits that the behaviors used by a leader to stimulate motivation to achieve both personal and organizational goals is predicated upon: u goals needed to be achieved u rewards for successful performance u behaviors that lead to successful performance

11. HOUSE AND MITCHELL’S PATH-GOAL THEORY n Theory provides four kinds of leadership u Instrumental Behavior--task-oriented, directive behavior often prescriptive u Supportive Behavior--employee-centered based on a climate of trust and respect u Participative Behavior--solicit and use employee ideas/input involve them in decision- making u Achievement Oriented--recognizes the value added to intellectual capital when employees grow and develop

12. LIFE-CYCLE THEORY n Relates leadership behaviors to employee and organizational maturity levels n Matrix approach Refer to Exhibit 13.9

13. CHALLENGES LEADERS FACE n Leadership Throughout the Organization n Leadership and Rapid Response n Leadership and Tough Decisions n How Managers can become more Effective Leaders