1. Leadership chapter fourteen Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Learning Objectives 1. Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. 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. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations. 4. Describe what transformational leadership is, and explain how managers can engage in it. 5. Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness. 14-2

3. The Nature of Leadership  Leadership  The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals. 14-3

4. The Nature of Leadership  Leader  An individual who is able to exert influence over other people to help achieve group or organizational goals 14-4

5. Personal Leadership Style and Managerial Tasks  Servant leader  A leader who has a strong desire to serve and work for the benefit of others. 14-5

6. Sources of Managerial Power 14-6 Figure 14.1

7. Power: The Key to Leadership  Legitimate Power  The authority that a manager has by virtue of his or her position in the firm.  Reward Power  The ability of a manager to give or withhold tangible and intangible rewards. 14-7

8. Traits and Personal Characteristics Related to Effective Leadership 14-8 Table 14.1

9. 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. 14-9

10. 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 14-10

11. Fiedler’s Contingency Theory of Leadership 14-11 Figure 14.2

12. 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. 14-12

13. Being a Charismatic Leader  Charismatic Leader  An enthusiastic, self-confident transformational leader able to clearly communicate his vision of how good things could be 14-13

14. Developmental Consideration  Developmental Consideration  Manager supports and encourages subordinates, giving them opportunities to enhance their skills and capabilities and to grow and excel on the job 14-14

15. Transactional Leadership  Transactional Leaders  Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance. 14-15