McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 10

Leaders and Leadership

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Learning Objectives

1. Describe 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

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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 and leadership

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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

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The Nature of Leadership

• Leader–An individual who is able to exert influence

over other people to help achieve group or organizational goals

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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.

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Discussion Question

What culture has the most effective leadership style?

A. Japanese

B. European

C. United States

D. Middle Eastern

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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

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Sources of Managerial Power

Figure 10.1

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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

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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

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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

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Power: The Key to Leadership

• Referent Power–Power that comes from subordinates’ and

coworkers’ respect for the personal characteristics of a leader which earns their loyalty and admiration.

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Empowerment: An Ingredient in Modern Management

• Empowerment–The process of giving workers at all levels

more authority to make decisions and the responsibility for their outcomes

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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

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Trait Models of Leadership

• Trait Model–Focused on identifying personal

characteristics that cause 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.

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Question?

Which leadership model identifies the two basic types of behavior that many leaders engaged in to influence their subordinates?

A. FiedlerB. Path-GoalC. BehavioralD. Trait

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The Behavior Model

• Behavioral Model–Identifies the two basic types of behavior that

many leaders engaged in to influence their subordinates

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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

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Contingency Models of Leadership

• Fiedler’s Model–Personal characteristics can influence leader

effectiveness –Leader style is the manager’s characteristic

approach to leadership

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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.

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Fiedler’s Model

• Situation Characteristics–How favorable a situation is for leading to

occur–Leader-member relations—determines how

much workers like and trust their leader

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Fiedler’s Model

• Task structure– the extent to which workers tasks are clear-cut

–clear issues make a situation favorable for leadership.

• Position Power– the amount of legitimate, reward, and coercive

power leaders have by virtue of their position

–When positional power is strong, leadership opportunity becomes more favorable.

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Fiedler’s Contingency Theory of Leadership

Figure 10.2

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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.

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Motivating with Path-Goal

Path-Goal identifies four leadership behaviors:

• Directive behaviors–set goals, assign tasks, show how to do things

• Supportive behavior–look out for the worker’s best interest

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Motivating with Path-Goal

• Participative behavior–give subordinates a say in matters that affect

them

• Achievement-oriented behavior–Setting very challenging goals, believing in

worker’s abilities

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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

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Transformational Leadership

• Leadership that:–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

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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

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Intellectual Stimulation

• 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

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Developmental Consideration

• Developmental Consideration –Behavior a leader engages in to support and

encourage followers and help them develop and grow on the job

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Transactional Leadership

• Transactional Leaders–Leaders that motivate subordinates by

rewarding them for high performance and reprimanding them for low performance

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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

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Emotional Intelligence and Leadership

• The Moods of Leaders:–Affect their behavior and effectiveness as

leaders–Affect the performance of their subordinates

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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

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Video Case: Women Leading in the Workplace

1. What types of power would you say the different executives featured in this case possess?

2. Why do you think stereotypes of both mean and women as leaders persist? What will be needed for them to be overcome?

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Movie Example: Hoosiers

1. Is Coach Dale an effective leader?

2. How does he react to disagreement from his players?