CHAPTER 9 (cont)

Leaders and
Leadership

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 Learning Objectives
10-1. Explain what leadership is, when
leaders are effective and ineffective,
and the sources of power that enable
managers to be effective leaders.
10-2. 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
10-3. Explain how contingency models of
leadership enhance our understanding of
effective leadership and management in
organizations.
10-4. Describe what transformational leadership
is, and explain how managers can engage
in it.
10-5. Characterize the relationship between
gender and leadership and explain how
emotional intelligence may contribute to
leadership effectiveness.
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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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 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

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 Leadership Styles 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.
• U.S managers focus more on short-term
profitability.
• Time horizons also are affected by cultures.

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 Sources of Managerial Power

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 Power: The Key to Leadership (1 of 3)
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, admiration, and
loyalty

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 Empowerment: An Ingredient in Modern Management

Empowerment
The process of giving employees at all levels
the authority to make decisions, be
responsible for their outcomes, improve
quality, and cut costs

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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 and Behavior Models of Leadership

Trait Model
• This model 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.

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 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

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 The Behavior Model
Consideration Initiating Structure
Behavior indicating Behavior that managers
that a manager trusts, engage in to ensure that
respects, and cares work gets done,
about subordinates subordinates perform
their jobs acceptably,
and the organization is
efficient and effective

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 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 or she does, and the situation in which
leadership takes place

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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- Task-Oriented
Oriented Leaders Leaders
Leaders whose primary Leaders whose primary
concern is to develop concern is to ensure
good relations with that subordinates
their subordinates and perform at a high level
to be liked by them and focus on task
accomplishment

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 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

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 Fiedler’s Model
Position Power
• The amount of legitimate, reward, and
coercive power leaders have by virtue of
their position
• Leadership situations more favorable for
leading when position power is strong

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 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 high-performance and goal attainment
• Clarifying the paths to the attainment of the
goals

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 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

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 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

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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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 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

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 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
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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
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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 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

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 Transactional Leadership

Transactional Leadership
Leaders who 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.
Men are stereotypically viewed as being
directive and focused on task accomplishment.
Male and female tend to be equally effective
leaders.

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 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

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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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 Topics for Discussion
Imagine that, upon graduation, you are
working in an organization in an entry-level
position 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? [LO 10-4, 10-5]

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