chapter 5

Leadership

McGraw-Hill/Irwin
Contemporary Management, 5/e

Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.

The Nature of Leadership

Leadership
The process by which a person use
influence over others and motivates and
directs their activities to achieve group or
organizational goals.

The Nature of Leadership

Leader
An individual who is able to employ influence
over other people to help achieve group or
organizational goals

Sources of Leadership Power

Power: The Key to Leadership

Legitimate Power :
The authority that a manager has by virtue of
his or her position in the firm.

Power: The Key to Leadership

Reward Power:
The ability of a manager to give or withhold tangible
and intangible rewards.
Effective managers use reward power to signal to
employees that they are doing a good job.

Power: The Key to Leadership

Coercive Power:
The ability of a manager to punish others.
Examples:
Oral warning

Pay cuts

Power: The Key to Leadership

Expert Power:
Power that is based on special knowledge,
skills, and expertise that the leader
possesses.
Tends to be used in a guiding or coaching
manner

Power: The Key to Leadership

Referent Power :
Power that comes from colleagues respect
and loyalty
Possessed by managers who are likable
and whom subordinates wish to use as a
role model.

Empowerment: An Component in
Modern Management
Empowerment:
The process of giving employees at all levels in
the organization the authority to make
decisions, be responsible for their outcomes,
improve quality, and cut costs.

Empowerment: An Component in
Modern Management
Empowerment increases a managers ability
to get things done.
Empowerment increases workers
involvement, motivation, and commitment
Empowerment gives managers more time to
concentrate on their critical concerns

Leadership Models
Trait Model:
Attempt to identify personal characteristics
that cause for 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.

Leadership Models
Behavioral Model :
Identifies the two basic types of behavior
that many leaders engaged in to influence
their subordinates

Leadership Models
Behavioral Model:
1. Consideration : leaders show
subordinates they trust, respect, and care
about them
Managers look out for the well-being of
their subordinates
Do what they can to help subordinates feel
good and enjoy the work they perform

Leadership Models
Behavioral Model:
2. Initiating structure: leaders take steps to
make sure that work gets done, subordinates
perform their work acceptably, and the
organization is efficient and effective
Managers assign tasks to groups and let
subordinates know what is expected of them

Contingency Models of Leadership

Contingency Models:
What makes a manager an effective leader in
one situation is not necessarily what that
manager needs to be equally effective in
another situation.
Whether or not a manager is an effective
leader is the result of the relationship
between what the manager is like, what he
does, and the situation in which leadership
takes place

Contingency Models of Leadership

Fiedlers Model:
Effective leadership is depending on both the
characteristics of the leader and of the
situation.
Leader style is the continuing, characteristic
approach to leadership that a manager uses
and does not readily (quickly) change.

Contingency Models of Leadership

Fiedlers Model
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 so
the job gets done.

Houses Path-Goal Theory

A contingency model of leadership proposing that
effective leaders can motivate subordinates to achieve
goals by:
1. Clearly identifying the outcomes that
subordinates are trying to obtain from their jobs.
2. Rewarding subordinates with these outcomes for
high-performance and attainment of work goals
3. Clarifying the paths leading to the attainment of
work goals

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 workers
best interest.
Participative behavior: give subordinates a say in
matters that affect them.
Achievement-oriented behavior: Setting very
challenging goals, believing in workers abilities.

Motivating with Path-Goal

Which behavior to be used depends on the
nature of the subordinates and the kind of
work they do