Ch.

10 Leaders and Leadership

1. Read Ch.10
2. Review Slide Decks (Canvas)
3. Review Lecture Notes (Canvas)
4. Read Orbiting the Giant Hairball & complete
assignment (oral presentation and discussion)
5. Review Case Work (in class) and discuss
6. Complete Conflict Management activity (in class)

10-1
Learning Objectives
• Explain what leadership is, when leaders are
effective and ineffective, and the sources of power
that enable managers to be effective leaders
• Identify the traits that show the strongest
relationship to leadership, the behaviors leaders
engage in, and the limitations of the trait and
behavior models of leadership
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 and explain how emotional intelligence
may contribute to leadership effectiveness
The Nature of Leadership
• Leadership: Process by which a person exerts
influence over other people and inspires, motivates
and directs their activities to help achieve group or
organizational goals
• Leader: An individual who is able to exert
influence over other people to help achieve group
or organizational goals
The Nature of Leadership
• Personal leadership style
• Specific ways in which a manager chooses to
influence others
• Shapes the way that manager approaches the other
tasks of management
• Challenge is for managers at all levels to develop an
effective personal management style
• Leaders look to the future, chart the course for the
organization, and attract, retain, motivate, inspire,
and develop relationships with employees
The Nature of Leadership
• Servant leaders: Have a strong desire to serve and
work for the benefit of others
• Share power with followers
• Strive to ensure that followers’ most important
needs are met
Question
What culture has the most effective leadership
style?
A. Japanese
B. European
C. United States
D. Middle Eastern
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
• In Japan the prime emphasis is on a group rather
that an individual
• Organizations in the United States tend to be very
profit-oriented and thus tend to downplay the
importance of individuals
• Cross-cultural difference occur in time horizons
Figure 10.1 - Sources of Managerial
Power
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
Power: The Key to Leadership
• A key component of effective leadership is found in
the power the leader has
• Legitimate power: Authority that a manager has by
virtue of his or her position in an organizational
hierarchy
• Reward power: Ability of a manager to give or
withhold tangible and intangible rewards
• Effective managers use their reward power to show
appreciation for subordinates’ good work and
efforts
• Ineffective managers use rewards in a controlling
manner
Power: The Key to Leadership
• Coercive power: Ability of a manager to punish
others
• Excessive use of coercive power seldom produces
high performance and is questionable ethically
• Expert power: Is based on special knowledge,
skills, and expertise that a leader possesses
• Expert power tends to be best used in a guiding or
coaching manner
Power: The Key to Leadership
• Referent power: Comes from subordinates’ and
coworkers’ respect for the personal characteristics
of a leader which earns their loyalty and
admiration
• Managers can take steps to increase their referent
power
• Spending time to get to know their subordinates,
showing concern for them
Empowerment: An Ingredient in
Modern Management
• Empowerment: Expansion of employees’
knowledge, tasks, and decision making
responsibilities
• Empowerment contributes to effective leadership
by:
• Increasing a manager’s ability to get things done
with the support and help of subordinates
• Increasing workers’ involvement, motivation, and
commitment
• Enabling managers can spend less time on daily
supervision activities
Leadership Models
• Trait model
• Focuses on identifying personal characteristics that
cause effective leadership
• Identifies traits like the leader's skills, abilities,
intelligence, knowledge, expertise, dominance,
integrity and honesty
• Some effective leaders do not possess all these
traits, and some leaders who possess them are not
effective in their leadership roles
Question?
Which leadership model identifies the two basic
types of behavior that many leaders engaged in to
influence their subordinates?
A. Fiedler
B. Path-goal
C. Behavioral
D. Trait
The Behavior Model
• Behavioral model: Identifies the two basic types of
behavior that many leaders engage in to influence
their subordinates—consideration and initiating
structure
• 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
Contingency Models of Leadership
• Whether or not a manager is an effective leader is
the result of the interplay between what the
manager is like, what he does, and the situation in
which leadership takes place
• Effectiveness of a leader with certain traits is
contingent on the situation or context in which he
performs
Contingency Models of Leadership
• Fiedler’s model
• Personal characteristics can influence leader
effectiveness
• Leader style is the manager’s characteristic
approach to leadership
• Identifies two basic leader styles: Relationship-
oriented and task-oriented
Contingency Models of Leadership
Relationship-oriented Task-oriented style
style • Leaders whose
• Leaders concerned primary concern is to
with developing good ensure that
relations with their subordinates perform
subordinates and to be at a high level and
liked by them focus on task
accomplishment
Fiedler’s Model
• Situation characteristics
• Leadership style is an enduring characteristic
• Three important situational characteristics
determine how favorable a situation is for leading
• Leader–member relations
• Task structure
• Position power
Fiedler’s Model
• Leader–member relations: Extent to which
followers like, trust, and are loyal to their leader
• Task structure: Extent to which workers tasks are
clear-cut so that a leader’s subordinates know what
needs to be accomplished and how to go about
doing it
• Position power: Amount of legitimate, reward, and
coercive power leaders have by virtue of their
position
Figure 10.2 - Fiedler’s Contingency
Theory of Leadership
House’s Path-Goal Theory
• A contingency model of leadership proposing the
effective leaders can motivate subordinates by:
• Clearly identifying the outcomes workers are trying
to obtain from their jobs
• Rewarding workers for high-performance and goal
attainment with the outcomes they desire
• Clarifying for subordinates the paths leading to the
attainment of work goals
House’s Path-Goal Theory
• Directive behaviors include setting goals, assigning
tasks, showing subordinates how to complete tasks,
and taking concrete steps to improve performance
• Supportive behaviors include expressing concern
for subordinates and looking out for their best
interests
• Participative behaviors give subordinates a say in
matters and decisions that affect them
• Achievement-oriented behaviors motivate
subordinates to perform at the highest level
possible
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
• Characteristics of subordinates—such as their skills,
abilities, experience, knowledge, and motivation
• Characteristics of the situation or context —such as
the extent to which the work is interesting and
enjoyable
Transformational Leadership
• 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
Being a Charismatic Leader
• Charismatic leader: Enthusiastic, self-confident
leader who is able to clearly communicate his or
her vision of how good things could be
• Their vision usually entails improvements in the
organization’s structure, culture, strategy, decision
making, and other critical processes
Intellectual Stimulation
• Behavior a leader engages in to make followers be
aware of problems and view those problems in new
ways, consistent with the leader’s vision
Developmental Consideration
• Behavior a leader engages in to support and
encourage followers and help them develop and
grow on the job
Transactional Leadership
• Leadership that motivates subordinates by
rewarding them for high performance and
reprimanding them for low performance
• Many transformational leaders engage in
transactional leadership
• Reward subordinates for a job well done and notice
and respond to substandard performance
• When leaders engage in transformational
leadership, their subordinates tend to have higher
levels of job satisfaction and performance
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 while men
are seen as task-focused
• Key research outcomes
• Male and female managers do not differ
significantly in their propensities to perform
different leader behaviors
• Male and female managers tend to be equally
effective as leaders
Emotional Intelligence and Leadership
• A leader’s level of emotional intelligence plays a
particularly important role in leadership
effectiveness
• Emotional intelligence may enable leaders to:
• Motivate their subordinates to commit to their
vision
• Develop a significant identity for their organization
and instill high levels of trust and cooperation
throughout the organization
• Respond appropriately when they realize they have
made a mistake