Chapter10Chapter10 PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved. Leadership and Management.

ChapterChapter

1010ChapterChapter

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PowerPoint Presentation by Charlie Cook© Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved.

Leadership and ManagementLeadership and ManagementLeadership and ManagementLeadership and Management

Essentials ofContemporary Management

© Copyright 2004 McGraw-Hill. All rights reserved. 10–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

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

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

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

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


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

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

Characterize the relationship between Characterize the relationship between gender and leadershipgender 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 goals.organizational 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 other leaders are very authoritarian.while other leaders 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 vary among different Leadership styles 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 managers.oriented than American or Japanese 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 focus on short-run efforts and results.U.S. firms 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. European firms fall somewhere between the U.S. and Japanese orientations.and Japanese orientations.


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

Figure 10.1


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 cut, and Examples: verbal reprimand, pay cut, and dismissal.dismissal.

• Is limited in effectiveness and application; can Is limited in effectiveness and application; can have serious negative side effects.have 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 possesses.skills, and expertise that the leader possesses.

• First-line and middle managers have the most First-line and middle managers have the most expert power; usually is technical ability.expert power; usually is 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 who has earned characteristics of a leader who has earned their loyalty and admiration.their 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 ModelAn attempt to identify personal An attempt to identify personal

characteristics that are the causes for characteristics that are the causes for effective leadership.effective 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 Many “traits” are the result of skills and knowledge and effective leaders do not knowledge and effective leaders do not necessarily possess all of these traits.necessarily possess all of these traits.


Traits and Personal Characteristics Traits and Personal Characteristics Related to Effective LeadershipRelated to Effective Leadership

Traits and Personal Characteristics Traits and Personal Characteristics Related to Effective LeadershipRelated to Effective Leadership

• IntelligenceIntelligence

• DominanceDominance

• Self-confidenceSelf-confidence

• High energyHigh energy

• Tolerance for stressTolerance for stress

• Integrity and honestyIntegrity and honesty

• MaturityMaturity


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

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

engaged in to influence their subordinates:engaged in to influence their subordinates:

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

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

• Both behaviors are independent; managers can Both behaviors are independent; managers can be high or low on both behaviors.be 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 situation. characteristics of the leader and of the situation.

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

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

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


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

• Situation CharacteristicsSituation CharacteristicsHow How favorablefavorable a situation is for leading to a situation is for leading to

occur.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 tasks are clear-cut; clear issues make a situation favorable for leadership.situation 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 leadership opportunity becomes more favorable.favorable.


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

Figure 10.2


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:

• Placed in situations that suit their leader style.Placed in situations that suit their leader style.

• The situation can be changed to fit the The situation can be changed to fit the manager’s leader style.manager’s 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, removing obstacles to performance, goals, removing obstacles to performance, and expressing confidence in worker’s and expressing confidence in worker’s ability.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 behaviorsDirective behaviors: set goals, assign tasks, : set goals, assign tasks,

show how to do things.show how to do things.Supportive behaviorSupportive behavior: look out for the : look out for the

worker’s best interest.worker’s best interest.Participative behaviorParticipative behavior: give subordinates a : give subordinates a

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

very challenging goals, believing in worker’s very 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 can leadership unnecessary. Possible substitutes can be found in:be found in:

• Characteristics of the subordinatesCharacteristics of the subordinates——their skills, their skills, experience, motivation.experience, motivation.

• Characteristics of contextCharacteristics of context——the extent to which work the extent to which work is interesting and fun.is 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 transformational An enthusiastic, self-confident transformational

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

• Being excited and clearly communicating Being excited and clearly communicating excitement to subordinates.excitement to 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 Engaging in the development of employees by working hard to help them build skills.working hard to help them build skills.


Transactional LeadershipTransactional LeadershipTransactional LeadershipTransactional Leadership

• Transactional LeadershipTransactional LeadershipLeadership that motivates subordinates by Leadership that motivates subordinates by

rewarding them for high performance and rewarding them for high performance and reprimanding them for low performance.reprimanding them for low performance.

• Transactional leaders “exchange” rewards for Transactional leaders “exchange” rewards for performance and punish failureperformance and punish failure..

• Transactional leaders push subordinates to Transactional leaders push subordinates to change but do not seem to change themselves.change but do not seem to change themselves.

• Transactional leaders do not have the “vision” of Transactional leaders do not have the “vision” of the transformational leader.the 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 low in the top levels of management.is still low in the top levels of 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 there is no gender-based Research indicates that there is no gender-based difference in leadership effectiveness.difference in leadership effectiveness.

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

Chapter10Chapter10 PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved. Leadership and Management.

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