Leaders and Leadership. Chapter Ten

Leaders and Leadership Chapter Ten

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

The Nature of Leadership Leader An individual who is able to exert influence over other people to help achieve group or organizational goals Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

The Nature of Leadership Servant Leader 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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Discussion Question What culture has the most effective leadership style? A. Japanese B. European C. United States D. Middle Eastern Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Leadership Styles Across Cultures Leadership styles may vary among different countries or cultures European managers tend to be more peopleoriented than American or Japanese managers Japanese managers are group-oriented U.S managers focus more on short-term profitability Time horizons also are affected by cultures Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Power: The Key to Leadership Referent Power Power that comes from subordinates and coworkers respect, admiration, and loyalty Paul Sancya/AP Images Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Empowerment: An Ingredient in Modern Empowerment Management The process of giving employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Empowerment: An Ingredient in Modern Empowerment Management 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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Trait Model Trait and Behavior Models of Leadership Focuses 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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Question? Which leadership model identifies the two basic types of behavior that many leaders engage in to influence their subordinates? A. Fiedler B. Path-goal C. Behavioral D. Trait

The Behavior Model Behavior Model Identifies the two basic types of behavior that many leaders engage in to influence their subordinates: consideration and initiating structure Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Contingency Models of Leadership Fiedler s Model Personal characteristics can influence leader effectiveness Leader style is the manager s characteristic approach to leadership Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Contingency Models of Leadership Relationship- Oriented Leaders Leaders whose primary concern is to develop good relations with their subordinates and to be liked by them. Task-Oriented Leaders Leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 work is clear-cut so that a leader s subordinates know what needs to be accomplished and how to go about doing it Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

House s Path-Goal Theory Path-Goal Theory states that effective leaders motivate subordinates to achieve goals by: Clearly identifying the outcomes that subordinates are trying to obtain Rewarding workers with these outcomes for highperformance and goal attainment Clarifying the paths to the attainment of the goals Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 workers abilities Stockbyte/Getty Images RF Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Transformational Leadership Transformational Leadership Makes subordinates aware of the importance of their jobs and performance to the organization 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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Transactional Leadership Transactional Leadership Leaders who motivate subordinates by rewarding them for high performance and reprimanding them for low performance Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- 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 Male and female tend to be equally effective leaders

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

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 Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw-

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Be the Manager What are you going to do to improve the performance and effectiveness of your company?

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Topics for Discussion Describe the steps managers can take to increase their power and ability to be effective leaders. [LO 10-1]

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Topics for Discussion Think of specific situations in which it might be especially important for a manager to engage in consideration and initiating structure. [LO 10-2]

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Topics for Discussion Discuss why managers might want to change the behaviors they engage in, given their situation, their subordinates, and the nature of the work being done. Do you think managers are able to readily change their leadership behaviors? Why or why not? [LO 10-3]

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Topics for Discussion Discuss why substitutes for leadership can contribute to organizational effectiveness. [LO 10-3]

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Topics for Discussion Describe what transformational leadership is and explain how managers can engage in it. [LO 10-4]

Copyright 2016 McGraw- All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Topics for Discussion Imagine that you are working in an organization in an entry-level position upon graduation and have come up with what you think is a great idea for improving a critical process in the organization that relates to your job. In what ways might your supervisor encourage you to implement your idea? How might your supervisor discourage you from even sharing your idea with others? [LO 10-4, 10-5]