LEADERSHIP&ORGANIZATIONAL

CHANGE

Lecture 4; The nature of leadership

PhD Krzysztof Nowakowski
 Lecture objectives;

• Definition of leadership.
• Leadership function.
• Source of power and influence.
• Motivation approaches to management.
• Classical theory of management.
• Analyzing work processes.
• Position power and formal authority.
 Introduction;
• Early researchers believed that notable leaders, (such as Lincoln,
Napoleon, Joan of Arc, Gandhi) had some unique set of qualities or
traits that distinguished them from their peers.
• These traits were also thought to be relatively stable and enduring.
Following this trait approach to leadership, researchers focused on
identifying the essential leadership traits.
• Although the trait approach was all but abandoned several decades
ago, in recent years, it has resurfaced.
• For example, some researchers have again started to focus on a
limited set of traits.
• These traits include emotional intelligence, mental intelligence,
drive, motivation, honesty and integrity, self-confidence, knowledge
of the business, and charisma.
• Some people even believe that biological factors, such as appearance
or height, may play a role in leadership.
 Definition
• LEADERSHIP the processes and behaviors used by someone,
such as a manager, to motivate, inspire, and influence the
behaviors of others.
• One of the biggest errors people make is assuming that
leadership and management mean the same thing when they are
really different concepts. A person can be a manager, a leader,
both, or neither.
• Organizations need both management and leadership if they are
to be effective.
• For example, leadership is necessary to create and direct change
and to help the organization get through tough times.
Movie; 7 Essential Qualities of All
Great Leaders;
https://youtu.be/eG16EmA2Fe0
 Leadership function
• Establishing direction. Developing a vision of the future, often
the distant future, and strategies for producing the changes
needed to achieve that vision.
• Aligning people. Communicating the direction by words and
deeds to all those whose cooperation may be needed to
influence the creation of teams and coalitions that understand
the vision and strategies and accept their validity.
• Motiwating and Inspiring. Energizing people to overcome
major political, bureaucratic, and resource barriers to change
by satisfying very basic, but often unfulfilled, human needs.
• Produces change, often to a dramatic degree, and has the
potential to produce extremely useful change (e.g., new
products that customers want, new approaches to labor
relations that help make a firm more competitive).
 SOURCES OF POWER AND
INFLUENCE
• The essence of leadership is influence over followers.
• However, the influence process between a leader and
followers is not unidirectional. Leaders influence followers,
but followers also have some influence over leaders.
• Moreover, in large organizations, the effectiveness of
middle-level and lower-level managers depends on their
influence over superiors and peers as well as their influence
over subordinates.
• To understand what makes managers effective requires an
analysis of the complex web of power relationships and
influence processes found in all organizations.
Movie; Max Weber Bureaucracy;
https://youtu.be/zp554tcdWO8
 Power

• Sometimes power means the manager capacity to influence a

person's behavior, whereas at other times it means influence over the
person's attitudes as well as behavior.
• Sometimes power is defined in relative rather than absolute terms as
the extent to which the manager has more influence over the
subordinate than the subordinate has over the manager ("net
power").
• Power may be defined as a manager potential influence over the
attitudes and behavior of one or more designated subordinates.
• The focus of the definition is on influence over people, but the ability
to influence decisions, events, and material things is treated as one
aspect of power.
 French and Raven (1959) developed a taxonomy to
classify different types of power according to their source

• Reward; The subordinate complies in order to obtain rewards he or she

believes are controlled by the manager.
• Coercive power; The subordinate complies in order to avoid
punishments he or she believes are controlled by the manager.
• Legitimate power; The subordinate complies because he or she
believes the manager has the right to make the request and the
subordinate has the obligation to comply.
• Expert power; The subordinate complies because he or she believes
that the manager has special knowledge about the best way to do
something.
• Referent power; The subordinate complies because he or she admires
or identifies with the manager and wants to gain the agent's approval.
 Position power and formal authority.

• Position power includes potential influence derived from

legitimate authority, control over resources and rewards,
control over punishments, control over information, and
control over the organization of the work and the physical
work environment.
• Formal Authority; power stemming from formal authority is
sometimes called legitimate power .
• Authority is based on perceptions about the prerogatives,
obligations, and responsibilities associated with particular
positions in an organization or social system.
• Authority includes the perceived right of one position occupant
to influence specified aspects of the behavior of other position
occupants.
 Control over resources and
rewards
• Another source of power in organizations is control over resources
and rewards. This control stems in part from formal authority.
• The higher a person's position in the authority hierarchy of the
organization, the more control over scarce resources the person is
likely to have.
• Executives have more control than middle managers, who in turn
have more control than first-line managers.
• Executives have authority to make decisions about the allocation of
resources to various subunits and activities, and in addition they have
the right to review and modify resource allocation decisions made at
lower levels.
 Movie; What is organizational
structure? https://youtu.be/wO_-
MtWejRM
 Control over resources and rewards

• Potential influence based on control over rewards is

sometimes called reward power.
• Reward power depends not only on control over
resources, but also on the perceptions of the subordinate
that a request or assignment is feasible and, if carried out,
will actually result in the promised reward.
• An attempt to use reward power will be unsuccessful if
the agent lacks credibility or the requirements for
obtaining the reward appear impossible.
 Control over Punishments
• Another source of power is control over punishments and
the capacity to prevent someone from obtaining desired
rewards. This form of power is sometimes called coercive
power.
• The formal authority system of an organization and its
traditions deal with the use of punishment as well as use of
rewards.
• A leader's authority over punishments varies greatly across
different types of organizations.
• The coercive power of military and political leaders is
usually greater than that of corporate managers.
 Control over Information

• Another important source of power is control over information. This

type of power involves both the access to vital information and control
over its distribution to others.
• Some access to information results from a person's position in the
organization's communication network.
• Managerial positions often provide opportunities to obtain information
that is not directly available to subordinates or peers.
• Boundary role positions (e.g., marketing, purchasing, public relations)
provide access to important information about events in the external
environment of an organization.
 Ecological control

• An important source of leader influence over the

behavior of subordinates is control over,
technology, and organization of the work.
• Manipulation of these physical and social conditions
allows indirect influence over the behavior of
others.
• This form of influence is sometimes called
"situational engineering" or "ecological control."
 Classical theory of management
• According to the classical theory of management, workers are
motivated solely by money.
• In his 1911 book, The Principles of Scientific Management,
industrial engineer Frederick Taylor proposed a way for both
companies and workers to benefit from this widely accepted view
of life in the workplace.
• If workers are motivated by money, Taylor reasoned, paying them
more should prompt them to produce more.
• Meanwhile, the firm that analized jobs and found better ways to
perform them would be able to produce goods more cheaply,
make higher profits, and pay and motivate workers better than its
competitors.
• Taylor's approach is known as scientific management.
Motivation Theory: Taylor (Scientific Management);
https://youtu.be/z4qdXvodZaE
 Work-flow analysis

• A theme common to nearly all quality programs is the

need to identify clearly the outputs of work, to specify the
quality standards for those outputs, and to analyze the
processes and inputs necessary for producing outputs
that meet the quality standards.
• This conception of the work-flow process is useful for the
manager to understand all the tasks required to produce
a high-quality product as well as the skills necessary to
perform those tasks.
 Analyzing work outputs

• Every work unit, whether a department, team, or

individual, seeks to produce some output that others can
use.
• An output is the product of a work unit and is often an
identifiable thing, such as a completed purchase order.
• However, an output can also be a service, such as the
services provided by an airline, a housecleaning service or
a baby-sitter who watches over children.
 Analyzing work processes

• The work processes are the activities that members of a

work unit engage in to produce a given output.
• Every process consists of operating procedures that
specify how things should be done at each stage of the
development of the product.
• These procedures include all the tasks that must be
performed in the production of the output.
• These tasks are usually broken down into those
performed by each person in the work unit.
 Work - flow analysis

• To understand adequately any individual job, a manager

must first understand the larger context in which the job
exists.
• To view a particular position in isolation from other
positions with which it is interdependent will result in a
flawed conception of the position.
• Therefore, effective managers have an accurate picture
of the work flow in their departments or work units.
 THE GREAT LEADER - Movie;
AMERICAN EXPERIENCE | Henry Ford,
Chapter 1 | PBS;
https://youtu.be/Vcr3YQK0eEY
 External sources;

•  Reading for this class ;

• Gary Yukl, 1994, Leadership in Organizations, Prentice Hall,
• Ronald J. Ebert, Ricky W. Griffin, 2007, Business Essentials, Pearson Prentice Hall,
• R. L. Daft, 1995, Organization Theory and Organization, West Publishing Company.
• H.M. Trice, J.M. Beyer, 1993, The Cultures of Work Organizations, Prentice Hall.
• R.A. Noe, J.R. Hollenbeck, B. Gerhart, P.M. Wright, Human Resource Management: Gaining a
Competitive Advantage, IRWIN.
• V.Pucik, N.M. Tichy, C.K. Barnett, edit. ,1993, Globalizing Management. Creating and
Leading the Competitive Organization, John Wiley & Sons.
• D.W. Organ, T.S. Bateman, 1991, Organizational Behavior, IRWIN.