1. chapter fourteen
Leadership
McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

2. 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
behavioral models of leadership.
14-2

3. 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
leadership.
14-3

4. The Nature of Leadership
• Leadership
– The process by which a person exerts influence
over others and inspires, motivates and directs
their activities to achieve group or
organizational goals.
14-4

5. Question?
What is an individual who is able to exert
influence over other people to help achieve
group or organizational goals?
A. Manager
B. Leader
C. Chief
D. Organizer
14-5

6. The Nature of Leadership
• Leader
– An individual who is able to exert influence over
other people to help achieve group or
organizational goals

7. 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 principal tasks of
management.
– The challenge is for managers
at all levels to develop an
effective personal management
style.

8. The Nature of Leadership
• Distinction between managers and leaders
– Managers establish and implement procedures to
ensure smooth functioning
– Leaders look to the future and chart the course
for the organization
14-8

9. Leadership 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, while
U.S managers focuses more on profitability.
– Time horizons also are affected by cultures.
14-9

10. Sources of Managerial Power
Figure 14.1
14-10

11. Power: The Key to Leadership
• Legitimate Power
– The authority that a manager has by virtue of
his or her position in the firm.
14-11

12. 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.
14-12

13. Power: The Key to Leadership
• Coercive Power
– The ability of a manager to punish others.
• Examples: verbal reprimand, pay cuts, and dismissal
• Limited in effectiveness and application; can have
serious negative side effects.
14-13

14. 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
14-14

15. Power: The Key to Leadership
• Referent Power
– Power that comes from subordinates’ and
coworkers’ respect , admiration, and loyalty
– Possessed by managers who are likable and
whom subordinates wish to use as a role model
14-15

16. Empowerment: An Ingredient 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
14-16

17. Empowerment: An Ingredient in
Modern Management
• Empowerment increases a manager’s ability
to get things done
• Empowerment increases workers’
involvement, motivation, and commitment
• Empowerment gives managers more time to
concentrate on their pressing concerns
14-17

18. 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.
14-18

19. Leadership Models
• Behavioral Model
– Identifies the two basic types of behavior that
many leaders engaged in to influence their
subordinates
14-19

20. Leadership Models
• Behavioral Model
– 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
14-20

21. Leadership Models
• Behavioral Model
– 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
14-21

22. 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
14-22

23. 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 does, and the situation
in which leadership takes place
14-23

24. Contingency Models of Leadership
• Fiedler’s Model
– Effective leadership is contingent on both the
characteristics of the leader and of the
situation.
– Leader style is the enduring, characteristic
approach to leadership that a manager uses and
does not readily change.
14-24

25. Contingency Models of Leadership
• Fiedler’s 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.
14-25

26. Fiedler’s Model
• Situation Characteristics
– Leader-member relations – extent to which
followers like, trust, and are loyal to their leader
– Task structure – extent to which the work to be
performed is clear-cut so that a leader’s
subordinates know what needs to be
accomplished and how to go about doing it
14-26

27. Fiedler’s Model
• Situation Characteristics
– Position Power - the amount of legitimate, reward,
and coercive power leaders have due to their
position. When positional power is strong,
leadership opportunity becomes more favorable.
14-27

28. Fiedler’s Contingency Theory of Leadership
Figure 14.2 14-28

29. House’s 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
14-29

30. Question?
Which leadership behavior gives subordinates a
say in matters that affect them?
A. Directive behavior
B. Supportive behavior
C. Participative behavior
D. Achievement-oriented behavior
14-30

31. 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 worker’s
best interest.
14-31

32. Motivating with Path-Goal
• Path-Goal identifies four leadership behaviors:
– Participative behavior: give subordinates a say in
matters that affect them.
– Achievement-oriented behavior: Setting very
challenging goals, believing in worker’s abilities.
14-32

33. Motivating with Path-Goal
Which behavior to be used depends on the
nature of the subordinates and the kind of
work they do
14-33

34. The Leader Substitutes Model
• Leadership Substitute
– Acts in the place of a leader and makes
leadership unnecessary.
– Worker empowerment or self-managed work
teams reduce leadership needs.
14-34

35. 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.
14-35

36. Transformational Leadership
Leadership that:
1. Makes subordinates aware of the importance of
their jobs are for the organization and how
necessary it is for them to perform those jobs as
best they can so that the organization can attain
its goals
14-36

37. Transformational Leadership
2. Makes subordinates aware of their own
needs for personal growth, development,
and accomplishment
3. Motivates workers to work for the good of
the organization, not just for their own
personal gain or benefit
14-37

38. Being a Charismatic Leader
• Charismatic Leader
– An enthusiastic, self-confident transformational
leader able to clearly communicate his vision of
how good things could be
14-38

39. Being a Charismatic Leader
• Charismatic Leader
– Being excited and clearly communicating
excitement to subordinates.
– Openly sharing information with employees so
that everyone is aware of problems and the need
for change.
– Empowering workers to help with solutions.
– Engaging in the development of employees by
working hard to help them build skills.
14-39

40. Intellectual Stimulation
• Intellectual Stimulation
– Manager leads subordinates to view problems
as challenges that they can and will meet and
conquer
– Manager engages and empowers subordinates
to take personal responsibility for helping to
solve problems
14-40

41. Developmental Consideration
• Developmental Consideration
– Manager supports and encourages subordinates,
giving them opportunities to enhance their skills
and capabilities and to grow and excel on the job
14-41

42. Transactional Leadership
• Transactional Leaders
– Use their reward and coercive powers to
encourage high performance—they exchange
rewards for performance and punish failure.
– Push subordinates to change but do not seem
to change themselves.
14-42

43. 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.
Similarly, men are seen as task-focused.
14-43

44. Gender and Leadership
• Research indicates that actually there is no
gender-based difference in leadership
effectiveness.
• Women are seen to be more participative
than men because they adopt the
participative approach to overcome
subordinate resistance to them as managers
and they have better interpersonal skills.
14-44

45. 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

46. 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.

47. Recap of lecture
• Leading people
• Influencing people
• Commanding people
• Guiding people

48. • Leader by the position achieved
• Leader by personality, charisma
• Leader by moral example
• Leader by power held
• Intellectual leader
• Leader because of ability to accomplish
things

49. Managers vs. Leaders
Managers Leaders
• Focus on things • Focus on people
• Do things right • Do the right things
• Plan • Inspire
• Organize • Influence
• Direct • Motivate
• Control • Build
• Follows the rules • Shape entities

50. • Common activities
• Planning
• Organizing
• Directing
• Controlling

51. Leadership Traits
• Intelligence • Personality
– More intelligent – Verbal facility
than non-leaders – Honesty
– Scholarship – Initiative
– Knowledge – Aggressive
– Being able to get – Self-confident
things done – Ambitious
• Physical – Originality
– Doesn’t see to be – Sociability
correlated
– Adaptability

52. Leadership Styles
• Delegating • Selling
– Low relationship/ low – High task/high
task relationship
– Responsibility – Explain decisions
– Willing employees – Willing but unable
• Participating • Telling
– High relationship/ low – High Task/Low
task relationship
– Facilitate decisions – Provide instruction
– Able but unwilling – Closely supervise

53. New Leaders Take Note
• Challenges
• General Advice
– Need knowledge
– Take advantage of quickly
the transition period
– Establish new
– Get advice and relationships
counsel
– Expectations
– Show empathy to
– Personal equilibrium
predecessor
– Learn leadership

54. New Leader Traps
• Not learning quickly
• Isolation
• Know-it-all • Captured by wrong
people
• Keeping existing
team • Successor syndrome
• Taking on too much

55. Core Tasks
• Create Momentum
• Master technologies of
learning, visioning, and
coalition building
• Manage oneself

56. Create Momentum
• Learn and know • Foundation for
about company change
• Securing early wins – Vision of how the
– First set short term organization will
goals look
– When achieved – Build political base
make a big deal to support change
– Should fit long term – Modify culture to fit
strategy vision

57. Create Momentum
• Build credibility
– Demanding but can
be satisfied
– Accessible but not
too familiar
– Focused but flexible
– Active
– Can make tough
calls but humane

58. Manage Oneself
• Be self-aware • Types of help
• Define your – Technical
leadership style – Political
• Get advice and – Personal
counsel • Advisor traits
– Advice is from – Competent
expert to leader – Trustworthy
– Counsel is insight – Enhance your status

59. •END