13Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. LeadershipLeadership

1313Chapter

PowerPoint Presentation by Charlie Cook© Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved.

LeadershipLeadership

© Copyright McGraw-Hill. All rights reserved. 13–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• After studying the chapter, you should be able to:After studying the chapter, you should be able to:Describe what leadership is, when leaders are Describe what leadership is, when leaders are

effective and ineffective, and the sources of effective and ineffective, and the sources of power that enable managers to be effective power that enable managers to be effective leaders.leaders.

Identify the traits that show the strongest Identify the traits that show the strongest relationship to leadership, the behaviors relationship to leadership, the behaviors leaders engage in, and the limitations of the leaders engage in, and the limitations of the trait and behavioral models of leadership.trait and behavioral models of leadership.

Explain how contingency models of leadership Explain how contingency models of leadership enhance our understanding of effective enhance our understanding of effective leadership and management in organizations.leadership and management in organizations.


Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)

Describe what transformational leadership is, Describe what transformational leadership is, and explain how managers can engage in it.and explain how managers can engage in it.

Characterize the relationship between Characterize the relationship between gender leadership.gender leadership.


Chapter OutlineChapter OutlineChapter OutlineChapter Outline

• The Nature of LeadershipThe Nature of LeadershipPersonal Leadership Style and Managerial Personal Leadership Style and Managerial

TasksTasksLeadership Styles Across CulturesLeadership Styles Across CulturesPower: The Key to LeadershipPower: The Key to LeadershipEmpowerment: An Ingredient in Modern Empowerment: An Ingredient in Modern

ManagementManagement

• Trait and Behavior Models of LeadershipTrait and Behavior Models of LeadershipThe Trait ModelThe Trait ModelThe Behavior ModelThe Behavior Model


Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

• Contingency Models of LeadershipContingency Models of LeadershipFiedler’s Contingency ModelFiedler’s Contingency ModelHouse’s Path-Goal TheoryHouse’s Path-Goal TheoryThe Leader SubstitutesThe Leader SubstitutesBringing It All TogetherBringing It All Together

• Transformational LeadershipTransformational LeadershipBeing a Charismatic LeaderBeing a Charismatic LeaderStimulating Subordinates IntellectuallyStimulating Subordinates IntellectuallyEngaging in Developmental ConsiderationsEngaging in Developmental ConsiderationsDistinction Between Transformational and Distinction Between Transformational and

Transactional LeadershipTransactional Leadership


Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

• Transformational Leadership (cont’d)Transformational Leadership (cont’d)Distinction Between Transformational and Distinction Between Transformational and

Transactional LeadershipTransactional Leadership

• Gender and LeadershipGender and Leadership

• Emotional Intelligence and LeadershipEmotional Intelligence and Leadership


The Nature of LeadershipThe Nature of LeadershipThe Nature of LeadershipThe Nature of Leadership

• LeadershipLeadershipThe process by which a person exerts The process by which a person exerts

influence over others and inspires, motivates influence over others and inspires, motivates and directs their activities to achieve group and directs their activities to achieve group or organizational goals.or organizational goals.

• Effective leadership increases the firm’s ability to Effective leadership increases the firm’s ability to meet new challenges.meet new challenges.

• LeaderLeaderAn individual who is able to exert influence An individual who is able to exert influence

over other people to help achieve group or over other people to help achieve group or organizational goalsorganizational goals


The Nature of LeadershipThe Nature of LeadershipThe Nature of LeadershipThe Nature of Leadership

• Personal Leadership StylePersonal Leadership StyleThe specific ways in which a manager The specific ways in which a manager

chooses to influence others shapes the way chooses to influence others shapes the way that manager approaches the other tasks of that manager approaches the other tasks of management.management.

• Leaders may delegate and support subordinates, Leaders may delegate and support subordinates, while others are very authoritarian.while others are very authoritarian.

The challenge is for managers at all levels to The challenge is for managers at all levels to develop an effective personal management develop an effective personal management style.style.


Leadership Across CulturesLeadership Across CulturesLeadership Across CulturesLeadership Across Cultures

• Leadership styles may vary among different Leadership styles may vary among different countries or cultures.countries or cultures.European managers tend to be more people-European managers tend to be more people-

oriented than American or Japanese oriented than American or Japanese managers.managers.

Japanese managers are group-oriented, while Japanese managers are group-oriented, while U.S managers focuses more on profitability.U.S managers focuses more on profitability.

Time horizons also are affected by cultures.Time horizons also are affected by cultures.• U.S. firms often focus on short-run efforts and results.U.S. firms often focus on short-run efforts and results.

• Japanese firms have a longer-run perspective.Japanese firms have a longer-run perspective.

• European firms fall somewhere between the U.S. and European firms fall somewhere between the U.S. and Japanese orientations.Japanese orientations.


Sources of Managerial PowerSources of Managerial PowerSources of Managerial PowerSources of Managerial Power

Figure 13.1


Power: The Key to LeadershipPower: The Key to LeadershipPower: The Key to LeadershipPower: The Key to Leadership

• Legitimate PowerLegitimate PowerThe authority that a manager has by virtue of The authority that a manager has by virtue of

his or her position in the firm.his or her position in the firm.• Example: the power to hire or fire employees.Example: the power to hire or fire employees.

• Reward PowerReward PowerThe ability of a manager to give or withhold The ability of a manager to give or withhold

tangible and intangible rewards.tangible and intangible rewards.• Example: awarding pay raises or providing verbal Example: awarding pay raises or providing verbal

praise for good performance.praise for good performance.

Effective managers use reward power to signal Effective managers use reward power to signal to employees that they are doing a good job.to employees that they are doing a good job.


Power: The Key to Leadership (cont’d)Power: The Key to Leadership (cont’d)Power: The Key to Leadership (cont’d)Power: The Key to Leadership (cont’d)

• Coercive PowerCoercive PowerThe ability of a manager to punish others.The ability of a manager to punish others.

• Examples: verbal reprimand, pay cuts, and dismissalExamples: verbal reprimand, pay cuts, and dismissal

• Limited in effectiveness and application; can have Limited in effectiveness and application; can have serious negative side effects.serious negative side effects.

• Expert PowerExpert PowerPower that is based on special knowledge, Power that is based on special knowledge,

skills, and expertise that the leader skills, and expertise that the leader possesses.possesses.

• First-line and middle managers have the most expert First-line and middle managers have the most expert power; most often consists of technical ability.power; most often consists of technical ability.


Power: The Key to Leadership (cont’d)Power: The Key to Leadership (cont’d)Power: The Key to Leadership (cont’d)Power: The Key to Leadership (cont’d)

• Referent PowerReferent PowerPower that comes from subordinates’ and Power that comes from subordinates’ and

coworkers’ respect for the personal coworkers’ respect for the personal characteristics of a leader which earns their characteristics of a leader which earns their loyalty and admiration.loyalty and admiration.

Usually held by and available for use by Usually held by and available for use by likable managers who are concerned about likable managers who are concerned about their workers.their workers.


Empowerment: An Ingredient in Empowerment: An Ingredient in Modern ManagementModern Management

Empowerment: An Ingredient in Empowerment: An Ingredient in Modern ManagementModern Management

• EmpowermentEmpowermentThe process of giving workers at all levels The process of giving workers at all levels

more authority to make decisions and the more authority to make decisions and the responsibility for their outcomes.responsibility for their outcomes.

Empowerment helps managers:Empowerment helps managers:• Get workers involved in the decisions.Get workers involved in the decisions.

• Increase worker commitment and motivation.Increase worker commitment and motivation.

• Have time to focus on other issues.Have time to focus on other issues.

• Effective managers usually empower Effective managers usually empower substantial authority to workers.substantial authority to workers.


Leadership ModelsLeadership ModelsLeadership ModelsLeadership Models

• Trait ModelTrait ModelAttempted to identify personal Attempted to identify personal

characteristics that cause for effective characteristics that cause for effective leadership.leadership.

• Research shows that certain personal “traits” do Research shows that certain personal “traits” do appear to be connected to effective leadership.appear to be connected to effective leadership.

• Many “traits” are the result of skills and knowledge Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all and effective leaders do not necessarily possess all of these traits.of these traits.


Leadership Models (cont’d)Leadership Models (cont’d)Leadership Models (cont’d)Leadership Models (cont’d)

• Behavioral ModelBehavioral ModelIdentifies the two basic types of behavior Identifies the two basic types of behavior

that many leaders engaged in to influence that many leaders engaged in to influence their subordinates:their subordinates:

• Consideration: employee-centered leadership Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, behavior indicating that a manager trusts, respects, and cares about subordinatesand cares about subordinates

• Initiating structure: job-oriented leadership behavior Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and done, subordinates perform their jobs acceptably, and the organization is efficient and effective.the organization is efficient and effective.

• Both behaviors are independent; managers can be Both behaviors are independent; managers can be high or low on both behaviors.high or low on both behaviors.


Contingency Models of Leadership Contingency Models of Leadership Contingency Models of Leadership Contingency Models of Leadership

• Fiedler’s ModelFiedler’s ModelEffective leadership is contingent on both the Effective leadership is contingent on both the

characteristics of the leader and of the characteristics of the leader and of the situation. situation.

Leader style is the enduring, characteristic Leader style is the enduring, characteristic approach to leadership that a manager uses approach to leadership that a manager uses and does not readily change.and does not readily change.

• Relationship-oriented style: leaders concerned with Relationship-oriented style: leaders concerned with developing good relations with their subordinates and developing good relations with their subordinates and to be liked by them.to be liked by them.

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


Fiedler’s Model Fiedler’s Model Fiedler’s Model Fiedler’s Model

• Situation CharacteristicsSituation CharacteristicsHow favorable a situation is for leading to occur.How favorable a situation is for leading to occur.Leader-member relationsLeader-member relations—d—determines how etermines how

much workers like and trust their leader.much workers like and trust their leader.Task structureTask structure—the —the extent to which workers extent to which workers

tasks are clear-cut; clear issues make a situation tasks are clear-cut; clear issues make a situation favorable for leadership.favorable for leadership.

Position PowerPosition Power—the —the amount of legitimate, amount of legitimate, reward, and coercive power leaders have due to reward, and coercive power leaders have due to their position. When positional power is strong, their position. When positional power is strong, leadership opportunity becomes more favorable.leadership opportunity becomes more favorable.


Fiedler’s Contingency Theory of LeadershipFiedler’s Contingency Theory of LeadershipFiedler’s Contingency Theory of LeadershipFiedler’s Contingency Theory of Leadership

Figure 13.2


Fiedler’s Model in ApplicationFiedler’s Model in ApplicationFiedler’s Model in ApplicationFiedler’s Model in Application

• Combines considerations of leader-member Combines considerations of leader-member relations, task structure, and position power to relations, task structure, and position power to identify leadership situations. identify leadership situations. Identifies situations where given types of Identifies situations where given types of

managers might perform best.managers might perform best.Leader style is a characteristic managers Leader style is a characteristic managers

cannot change; managers will be most cannot change; managers will be most effective when:effective when:

• they are placed in situations that suit their leader they are placed in situations that suit their leader style.style.

• the situation can be changed to fit the manager’s the situation can be changed to fit the manager’s leader style.leader style.


House’s Path-Goal TheoryHouse’s Path-Goal TheoryHouse’s Path-Goal TheoryHouse’s Path-Goal Theory

• A contingency model of leadership proposing A contingency model of leadership proposing the effective leaders can motivate the effective leaders can motivate subordinates by:subordinates by:

1.1. Clearly identifying the outcomes workers Clearly identifying the outcomes workers are trying to obtain from their jobs.are trying to obtain from their jobs.

2.2. Rewarding workers for high-performance Rewarding workers for high-performance and goal attainment with the outcomes they and goal attainment with the outcomes they desiredesire

3.3. Clarifying the paths to the attainment of the Clarifying the paths to the attainment of the goals, remove obstacles to performance, goals, remove obstacles to performance, and express confidence in worker’s ability.and express confidence in worker’s ability.


Motivating with Path-GoalMotivating with Path-GoalMotivating with Path-GoalMotivating with Path-Goal

• Path-Goal identifies four leadership behaviors:Path-Goal identifies four leadership behaviors:Directive behaviors: set goals, assign tasks, Directive behaviors: set goals, assign tasks,

show how to do things.show how to do things.Supportive behavior: look out for the worker’s Supportive behavior: look out for the worker’s

best interest.best interest.Participative behavior: give subordinates a say Participative behavior: give subordinates a say

in matters that affect them.in matters that affect them.Achievement-oriented behavior: Setting very Achievement-oriented behavior: Setting very

challenging goals, believing in worker’s challenging goals, believing in worker’s abilities.abilities.

• Which behavior to be used depends on the Which behavior to be used depends on the nature of the subordinates and the tasks.nature of the subordinates and the tasks.


The Leader Substitutes ModelThe Leader Substitutes ModelThe Leader Substitutes ModelThe Leader Substitutes Model

• Leadership SubstituteLeadership SubstituteActs in the place of a leader and makes Acts in the place of a leader and makes

leadership unnecessary. Possible substitutes leadership unnecessary. Possible substitutes can be found in:can be found in:

• Characteristics of the subordinates: their skills, Characteristics of the subordinates: their skills, experience, motivation.experience, motivation.

• Characteristics of context: the extent to which work is Characteristics of context: the extent to which work is interesting and fun.interesting and fun.

Worker empowerment or self-managed work Worker empowerment or self-managed work teams reduce leadership needs.teams reduce leadership needs.

Managers should be aware that they do not Managers should be aware that they do not always need to directly exert influence over always need to directly exert influence over workers.workers.


Transformational LeadershipTransformational LeadershipTransformational LeadershipTransformational Leadership

• Leadership that:Leadership that:Makes subordinates aware of the importance Makes subordinates aware of the importance

of their jobs and performance to the of their jobs and performance to the organization by providing feedback to the organization by providing feedback to the worker.worker.

Makes subordinates aware of their own Makes subordinates aware of their own needs for personal growth and development.needs for personal growth and development.

Motivates workers to work for the good of the Motivates workers to work for the good of the organization, not just themselves.organization, not just themselves.


Being a Charismatic LeaderBeing a Charismatic LeaderBeing a Charismatic LeaderBeing a Charismatic Leader

• Charismatic LeaderCharismatic LeaderAn enthusiastic, self-confident An enthusiastic, self-confident

transformational leader able to clearly transformational leader able to clearly communicate his or her vision of how good communicate his or her vision of how good things could be by:things could be by:

• Being excited and clearly communicating excitement to Being excited and clearly communicating excitement to subordinates.subordinates.

• Openly sharing information with employees so that Openly sharing information with employees so that everyone is aware of problems and the need for everyone is aware of problems and the need for change. change.

• Empowering workers to help with solutions.Empowering workers to help with solutions.

• Engaging in the development of employees by working Engaging in the development of employees by working hard to help them build skills.hard to help them build skills.


Transactional LeadershipTransactional LeadershipTransactional LeadershipTransactional Leadership

• Transactional LeadersTransactional LeadersUse their reward and coercive powers to Use their reward and coercive powers to

encourage high performanceencourage high performance—they exchange —they exchange rewards for performance and punish failurerewards for performance and punish failure..

Push subordinates to change but do not Push subordinates to change but do not seem to change themselves.seem to change themselves.

Do not have the “vision” of the Do not have the “vision” of the transformational leader.transformational leader.


Gender and LeadershipGender and LeadershipGender and LeadershipGender and Leadership

• The number of women managers is rising but The number of women managers is rising but is still relatively low in the top levels of is still relatively low in the top levels of management.management.Stereotypes suggest women are supportive Stereotypes suggest women are supportive

and concerned with interpersonal relations. and concerned with interpersonal relations. Similarly, men are seen as task-focused.Similarly, men are seen as task-focused.

• Research indicates that actually there is no gender-Research indicates that actually there is no gender-based difference in leadership effectiveness.based difference in leadership effectiveness.

• Women are seen to be more participative than men Women are seen to be more participative than men because they adopt the participative approach to because they adopt the participative approach to overcome subordinate resistance to them as overcome subordinate resistance to them as managers and they have better interpersonal skills.managers and they have better interpersonal skills.


Emotional Intelligence and LeadershipEmotional Intelligence and LeadershipEmotional Intelligence and LeadershipEmotional Intelligence and Leadership

• The Moods of Leaders:The Moods of Leaders:Affect their behavior and effectiveness as Affect their behavior and effectiveness as

leaders.leaders.Affect the performance of their subordinates.Affect the performance of their subordinates.

• Emotional IntelligenceEmotional IntelligenceHelps leaders develop a vision for their firm.Helps leaders develop a vision for their firm.Helps motivate subordinates to commit to Helps motivate subordinates to commit to

the vision.the vision.Energizes subordinates to work to achieve Energizes subordinates to work to achieve

the vision.the vision.

Documents

13Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. LeadershipLeadership