Leadership

Handout #1

The Nature of Leadership

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.

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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.

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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.

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Management

- Use of authority inherent in designated formal rank to obtain compliance from organizational members.

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

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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 challenge is for managers

at all levels to develop an effective personal management style.

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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

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Leader versus Manager Qualities

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MANAGERLEADER

Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12

SOULVisionaryPassionateCreativeFlexible

InspiringInnovative

CourageousImaginative

ExperimentalInitiates changePersonal power

MINDRational

ConsultingPersistent

Problem solvingTough-minded

AnalyticalStructuredDeliberate

AuthoritativeStabilizing

Position power

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.

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Sources of Managerial Power

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Power: The Key to Leadership

• Legitimate Power– The authority that a manager has by virtue

of his or her position in the firm.

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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.

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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.

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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

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Power: The Key to Leadership

• Referent Power– Power that comes from subordinates’ and

coworkers’ respect , admiration, and loyalty– Power based on identification with a

person who has desirable resources or

personal traits.

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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

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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

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Handout #2

Leadership Models

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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.

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Leadership TraitsLeadership Traits::

• Ambition and energyAmbition and energy

• The desire to leadThe desire to lead

• Honest and integrityHonest and integrity

• Self-confidenceSelf-confidence

• IntelligenceIntelligence

• High self-monitoringHigh self-monitoring

• Job-relevant Job-relevant knowledgeknowledge

Leadership TraitsLeadership Traits::

• Ambition and energyAmbition and energy

• The desire to leadThe desire to lead

• Honest and integrityHonest and integrity

• Self-confidenceSelf-confidence

• IntelligenceIntelligence

• High self-monitoringHigh self-monitoring

• Job-relevant Job-relevant knowledgeknowledge

Traits Theories of Leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.

Leadership Models

• Behavioral Model– Identifies the two basic types of behavior

that many leaders engaged in to influence their subordinates

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• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

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

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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

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Leadership Grid

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High

High

Low

Low

Concern for Production

Con

cern

for

Peo

ple

1,9Country Club ManagementThoughtful attention to theneeds of people for satisfyingrelationships leads to a com-fortable, friendly organizationatmosphere and work tempo.

Impoverished ManagementExertion of minimum effortto get required work doneis appropriate to sustainorganization membership.1,1

9,9Team ManagementWork accomplishment is fromcommitted people; interdependencethrough a “common stake” inorganization purpose leads torelationships of trust and respect.

5,5Middle-of-the-Road ManagementAdequate organization performance ispossible through balancing the necessityto get out work with maintaining morale ofpeople at a satisfactory level.

Authority-ComplianceEfficiency in operations resultsfrom arranging conditions ofwork in such a way that humanelements interfere to a minimumdegree. 9,1

Figure 1Figure 1

The Leadership

Grid(Blake and Mouton)

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Figure 2Figure 2

Black and Mouton’s Managerial and leadership grid

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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

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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 does, and the situation in which leadership takes place

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Contingency Models of Leadership

• Fiedler’s Model– Effective leadership is contingent on both

the characteristics of the leader and of the situation.

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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. (employee-oriented)

– Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done.

(production-oriented).

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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

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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.

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Fiedler’s Contingency Theory of Leadership

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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

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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

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Path-Goal Theory

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Path-Goal Theory

The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

Path-Goal Theory Leaders Behaviors

Supportive leadership:… Leader behavior that shows concern for subordinates… Open, friendly, and approachable… Creates a team climate… Treats subordinates as equals Directive leadership:… Tells subordinates exactly what they are supposed to

do… Planning, making schedules, setting performance

goals, and behavior standards Participative leadership:… Consults with his or her subordinates about decisions Achievement-oriented leadership:… Sets clear and challenging goals for subordinates… Behavior stresses high-quality performance

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Motivating with Path-Goal

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

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Path-Goal Situations &Preferred Leader Behavior

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Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.

Figure 4

Path Goal Theory

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Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), 26-40.

Figure 5

Discussion Question

Which leadership model is the most effective?

A. Trait model

B. Behavior model

C. Fiedler’s model

D. Path-goal theory

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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.

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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

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

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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

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Being a Charismatic Leader

• Charismatic Leader– An enthusiastic, self-confident

transformational leader able to clearly communicate his vision of how good things could be

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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.

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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

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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

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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.

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Transformational Leadership Elements

1.Create a strategic vision–Depiction of company’s attractive future

• motivates and bonds employees–Leader champions the vision

2.Communicate the vision–Frame message around a grand purpose–Create a shared mental model of the future–Use symbols and metaphors.

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Transformational Leadership Elements (con’t)

3.Model the vision– Walk the talk– Symbolize/demonstrate the vision through

behavior– Builds employee trust in the leader

4.Build commitment to the vision– Increased through communicating and modeling

the vision– Increased through employee involvement in

shaping the shared vision

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Transformational vs. Transactional Leaders

• Transformational leaders– Leading -- changing the

organization to fit environment– Change agents

• Transactional leaders– Managing – achieving current

objectives more efficiently • link job performance to rewards

• ensure employees have necessary resources

– Relates to contingency leadership theories (e.g. path-goal)

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.

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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.(Participative leadership style is used more often by female leaders.)

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Gender Issues in Leadership

• Male and female leaders have similar task- and people-oriented leadership.

• Evaluating female leaders– Still receive negative evaluations as leader

due to prototypes and gender stereotypes– They are good at emerging leadership

styles (coaching, teamwork)

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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

• refers to the ability to perceive, control and evaluate emotions.

• Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic.

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The importance of 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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End of Handout 2End of Handout 2