CHAPTER 11

LEADING

Prepared by:
Batomalaque, Shannieze
Despi, Kresha Jean
Edullantes, Vivian Marie
Escolar, Chamique
Nuyad, Jodette Karyl
Pelone, Ferrer Jay
Rosello, Sheila Mae
Tan, Marie Kharl

Submitted to:
Ms. Roselyn Degamo
BM 101 Instructor
Introduction

Good afternoon miss, good afternoon classmates! This time we will be talking
about the nature and importance of leading, how leaders influence others, behavioral
approaches and contingency approaches to leadership styles. Are you ready?

You may wonder, what is leading? But before we go into that topic, let us first go
back with business. We might ask, how do leading in relevance to business and vice
versa. So if you could still remember, we already discussed the various requirements for
maintaining a business organization in our previous chapters, but after these are put in
place, do the firm still need someone like a superhero or a sort of an engine that will
propel it to become a successful venture? Probably, you would say yes!

Maybe we are all familiar with competitors they’re like a threat to your business
and if you can’t deal with them and take to risk for the business to grow and succeed,
there will be a great damage to your business venture. They tend to derail the plans of
the company, so who will be the one to take charge of not letting this happen?

Assets, liabilities, owner’s equity, revenues, and expenses are very much familiar
to us. I believe, we love them so much in our Accounting 101 subject? Or we tend to
forget that everyone of us has it even if we’re not a business. In fact, your phone is your
asset. Now, though assets cannot stand on their own to achieve company objectives.
Just like your phone, it will not work if you won’t use it.

We could probably include human resources for example even if they are fully
trained and properly motivated, may still proceed to move toward the wrong direction.
It’s like walking down the street with a blindfold. Well, if I told you to execute that will you
do?

There are also instances when employees of a certain company may experience
emotional breakdown. They might get easily affected by disruptions and minor failures.
How could this happen to me? No! How could this will affect the company’s objectives?
So much if these persons perform key functions to the business.

So what will we do next? Do we need to call a hero, a super one? Yes!

 To effectively and efficiently utilize the assets, we will be needing the wisdom of
somebody. Take note, wisdom not just somebody but someone who possess wisdom.
Because if that person has the qualities, he or she must console the employees who are
distracted by minor setbacks, somebody who must uplift their spirits when they feel
demoralized.

Therefore, in this case what do we need? Do we need leadership? Only

leadership? Effective leadership rather.

WHAT IS LEADING?

There are millions if not thousands of people who defines leading, leader,
leadership and the like. But based on the book of Medina “Business Organization and
Management”, leading is a management function which involves influencing others to
engage in the work behaviors necessary to reach organizational goals. This definition
would probably give us a hint that we will assume the role performed by leaders.

Are you familiar with Ronald Reagan? If not, it’s a tie! No, just kidding what I’m
trying to say is that Reagan quoted, “The greatest leader is not necessarily the one who
does the greatest things. He is the one that gets the people to do the greatest things.”
Does is make sense? Yes, it is!

Leading is the function while leadership is the process.

HOW LEADERS INFLUENCE OTHERS

A quote from Mother Teresa, “You can do what I cannot do. I can do what you
cannot do. Together, we can do great things.” Meaning there is participation between
the leader and the members to effectively maintain work forces. Therefore, there is a
need for the managers to perform leadership roles.
 It is being said that leaders are able to influence others because of the power
they possess. When we say power, this refers to the ability of a leader to exert force on
another.

Bases of Power and Classifications

1. Legitimate Power – the one who occupies a higher position over persons in lower
positions within the organization.
ex: supervisor can issue orders to the workers in his unit
a chairman to his or her subordinates

2. Reward Power – the one who give rewards to anybody who follows orders or
requests

2 forms
 material rewards – money or other tangible benefits (cars, house and lots,
etc.)
 psychic rewards – consist of recognition, praises (“employee of the
month”)

3. Coercive Power – the one who compels another to comply with orders through
threats or punishment (demotion, dismissal, withholding of promotion, and the
like)

4. Referent Power – the one who gets compliance from another because the latter
would want to be identified with the former
ex: for you to be hired, you are referred by your friend who’s currently
working as a manager in a certain company

5. Expert Power – the one who provides specialized information regarding their
specific lines of expertise (environmental scientist to convince governments
throughout the world to pass legislations favorable to environmental protection)
THE NATURE OF LEADERSHIP

Leadership – the process of influencing and supporting others in work

enthusiastically toward achieving objectives

Thus, leadership is expected of any manager in charge of any unit or division.

According to John C. Maxwell, he said “Leadership is not about titles, positions or

flowcharts. It is about one life influencing another.” Therefore, effective leadership is a
must. Have you seen or heard a business venture becoming successful without the
practice of effective leadership? If yes, then it’s a miracle or it’s not for a long run. For
the company’s objectives to achieve, a leader must function properly.

Prepared by: Despi, Kresha Jean T.

TRAITS OF EFFECTIVE LEADERSHIP

1. PERSONAL DRIVE - those identified as willing to accept responsibility, possess

vigor, initiative, persistence, and health. This is important because of the possibility of
failure in every attempt to achieve certain goals.

2. THE DESIRE TO LEAD - Persons who do not have the desire to lead but are forced
to act as leaders will not be effective because their efforts will be half-hearted. Leaders
with the desire to lead will always have the reservoir of extra efforts.

3. PERSONAL INTEGRITY - includes honesty, honor, incorruptibility, rectitude,

righteousness, uprightness, and other similar virtues. Integrity is important because a
person who possesses it is well-regarded by others.

4. SELF-CONFIDENCE - This is necessary in leadership such as conceptualizing,

organizing, and implementing of activities. Subordinates and even peers are known to
follow someone who displays an air of self-confidence.

5. ANALYTICAL ABILITY - ability to analyze is one desirable trait that a leader can use
to tide him over many challenging aspects of leadership. Because a leader with
sufficient skill to determine the root cause of the problem may be able to help the
subordinate to improve his production.

6. KNOWLEDGE OF THE COMPANY, INDUSTRY, AND TECHNOLOGY - A leader who

is well-informed about his company, the industry, and the technology utilized by the
industry, will be in a better position to provide directions to his unit.

7. CHARISMA - a person with sufficient personal magnetism that motivates people to

follow his directives is said to have charisma. When properly used, it will help the leader
in achieving his goals.
8. CREATIVITY - refers to the ability of the manager to find new and better ways of
accomplishing his work. This allows him to see relationships among existing data, which
can lead him to devise new solutions to problems.

9. FLEXIBILITY - In a workplace, one will adapt a method different from another

person's method. A leader is said to be flexible if he allows this situation as long as the
required outputs are produced.

LEADERSHIP SKILLS

1. TECHNICAL SKILLS - skills a leader must possess to enable him to understand and
make decisions about work processes, activities, and technology. This skill is the
specialized knowledge needed to perform a job.

2. HUMAN SKILLS - Ability of the leader to interact with people inside and outside of the
organization. A good leader must know how to get along with his team, he must
motivate them, and inspire them.

3. CONCEPTUAL SKILLS - ability of the person to think in abstract terms and see how
parts fit together to form the whole. A leader without this skill will fail in the aspect.

Prepared by: Nuyad, Jodette Karyl & Edullantes, Vivian Marie

BEHAVIORAL APPROACHES TO LEADERSHIP STYLES

In this topic, different behavioral approaches to leadership styles are being

highlighted, wherein it showcases and exhibits pattern that certain leaders may possess
towards dissemination of tasks, motivation and treatment on the different workers. And
even in handling their powers towards promoting positive leadership in the workplace.
Preview: A graph is provided in the book, it shows the flow and pattern with the different
means and different approach in it. Below is the is the shortened description of the
following behavioral approaches.

1. Ways leader approach people.

In this way there two types of approach. Positive approach, when the
leader emphasize rewards may be economic (increase in salary)
noneconomic (membership in an advisory committee). Negative approach,
when the leader focuses on punishments such in the form of Reprimand,
Suspension or dismissal.

2. Ways leaders use power.

In this regard it is how power is used. Which consists of the following:

a. Autocratic leaders.
It is where leaders make decisions on his own, without considering
other members. Motivation takes the form of threats, punishment, and
intimidation of all kinds. This approach is most useful and effective
during emergencies and when followership is needed. Yet, the
disadvantages is that the leader receives little, if any information, ideas
and suggestions from his subordinates as inputs into his decision
making.
Prepared by: Batomalaque, Shannieze

b. Participative Leaders.
It is when he/she openly invites other members or staffs in the
organization to participate or share in decision making, policy making
 and operation methods, it is said that he/she is to be a participative
leader. There are advantages and disadvantages of a participative
leaders. Advantage is that it can give lots of good ideas and it
increases the support for decision made. The disadvantage is that it is
time-consuming and frustrating to people who prefer to see a quick
decision made.

c. Free-Rein Leaders.

These are leaders who set objectives and allow employees or

subordinates' relative freedom to do whatever it takes to accomplish
those objectives.

3. Leader's Orientation Toward Tasks and People. Leadership are classified according
to how leaders view task and people. And he/she either be:

a. Employee Oriented – is when he/she considers employees as a human beings

of intrinsic importance and with individuals and personal needs to satisfy. This kind of
leader, sees an employee as a person himself and not a worker only.

b. Task Oriented – is when he/she places stress on production and the technical
aspects of the job and the employees are viewed as the means of getting the work
done. This kind of leader is kind of opposite to the employee oriented because this
leader must let the employee get the work done immediately.

Prepared by: Tan, Marie Kharl

CONTINGENCY APPROACHES TO LEADERSHIP STYLE CONTINGENCY
APPROACH

-this refers to the effort to determine through research which managerial

practices are appropriate in specific situations. Contingency approaches:

1. Fiedler's contingency model - according to Fred Fiedler leadership is effective when

the leader style is appropriate to the situation.

3 principal factors:

a. relation between leader and followers

b. structure of the task

c. power inherent in the leader’s position If those situational characteristics is not

effective

these following characteristics may be tried:

1. change the leader’s traits or behavior

2. select leaders who have traits or behavior fitting the situation

3. move leaders around in the organization until they are in positions that
fit them

4. change the situation

2. Hersey and Blanchard's Situational Leadership Model - according to Hersey and

Blachard the most important factor affecting the selection of leader’s style is the
development level of the subordinate.
2 components of maturity:

1. job skill and knowledge

2. psychological maturity

leadership styles appropriate for the various maturity levels of

subordinates:

a. Directing - for people who lack in competence but are

enthusiastic and committed.

b. Coaching - for people who have some competence but lack

commitment.

c. Supporting - for people who have competence but lack

confidence or motivation.

d. Delegating - for people who have both competence and

commitment.

Prepared by: Rosello, Sheila Mae

3. Path-Goal Model of Leadership-

- espoused by Robert J. House and Terence R. Mitchell stipulates that leadership

can be made

- effective because leaders can influence subordinate’s perception of their work

goals, personal goals, and paths to goal attainment.
 Leader identifies
employee needs

Employees are in better

Appropriate goals are position to reach goals
established

Effective performance
Leader connects rewards occurs
with goals

Leader provides Employee is satisfied and

assistance on employee motivated and accepts the
path goals leader

THE PATH GOAL PROCESS

Prepared by: Escolar, Chamique

The leadership styles, which may be used by path-goal proponents, are as follows:
a. Directive Leadership - leader focuses on clear task assignments, standards of
successful performance, and work schedules.
b. Supportive Leadership - subordinates are treated as equals in a friendly manner
while striving to improve their well-being.
c. Participative Leadership - leader consults with subordinates to seek their
suggestions and then seriously consider those suggestions when making
decisions.
d. Achievement-Oriental Leadership - leader sets challenging goals, emphasizes
excellence, and seeks continues improvement while maintaining a high
A high degree of confidence that subordinates will meet challenges in a responsible
manner.

4. Vroom’s Decision Making Model –

is one that prescribes the proper leadership style for various situations, focusing on the
appropriate degrees of delegation of decision making authority.
Prepared by: Pelone, Ferrer Jay