Business Management, 13e
CHAPTER
3
The Manager as Leader
3.1
3.2
3.3
3.4
The Importance of Leadership
Developing Leadership Skills
Leadership Styles
Employee Issues and Work Rules
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2
3.1 The Importance of Leadership
GOALS
● Recognize the importance of leadership and
human relations.
● Identify important leadership characteristics
and types of power.
● Describe four types of power available to
leaders.
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The Importance of Leadership
● Leadership in business
● Leader: earns the respect and cooperation of
employees to effectively accomplish the work of
the organization.
● Leadership: the ability to influence individuals and
groups to cooperatively achieve common goals.
● Human relations: refers to how well people get
along with each other when working together.
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The Importance of Leadership
● Developing as a leader
● Not every manager is currently an effective leader,
but leadership skills can be developed.
● A leader not only demonstrates effective human
relation skills but also helps others to develop
these skills.
● Leaders must take responsibility for the work of
the group they lead, so they need to demonstrate
and develop positive human relation skills.
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Leadership Characteristics
● Intelligence
● Honesty
● Judgment
● Courage
● Objectivity
● Confidence
● Initiative
● Stability
● Dependability
● Understanding
● Cooperation
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Leadership Characteristics
● Intelligence
● Judgment
● Leaders use their
intelligence to study,
learn, and improve their
management skills.
● They also help the
people they work with to
develop new skills.
● Leaders must use their
intelligence effectively.
● Leaders must make
many decisions.
● Consider facts carefully
● Gather new information
● Apply knowledge and
experience.
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Leadership Characteristics
● Objectivity
● Leaders must be able to
look at all sides of a
problem and not make
biased judgments or
statements.
● Gather information and do
not rush into actions
before considering the
possible results.
● Value individual
differences, and try to
avoid reacting to
stereotypes or first
impressions.
● Initiative
● Leaders have ambition and
persistence in reaching
goals.
● Self-starters who plan what
they want to do and then
do it.
● Have drive and are highly
motivated.
● Encourage others to be
involved, take actions, and
make decisions when
appropriate.
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Leadership Characteristics
● Dependability
● Those who lead are
consistent in their actions,
and others can rely on
them.
● Do not make promises that
cannot be fulfilled.
● Make a commitment,
follow through, and have
same expectations for
others.
● Can be counted on!
● Cooperation
● Leaders understand the
importance of the other
people and enjoy being
with them.
● Strive to work well with
others.
● Understand that people
working together can
accomplish more that the
same people working
alone.
● Devote time and effort to
building cooperative
relations.
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Leadership Characteristics
● Honesty
● Leaders are honest.
● High standards of personal
integrity.
● Ethical in decisions and
treatment of others.
● Courage
● Make unpopular decisions
and try new approaches in
solving problems.
● Willing to take risks to
support others.
● Confidence
● Leaders have a great deal
of self-confidence.
● Attempt to make the best
decisions possible and
trust their own judgment.
● Respect others and expect
quality work.
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Leadership Characteristics
● Stability
● Leaders are not highly
emotional.
● You can depend on their
reactions.
● They work with others to
solve problems and reduce
conflicts.
● Understanding
● Recognize that the feelings
and ideas of others are
important.
● Try to understand the
people they work with.
● Encourage others to share
their ideas, experiences,
and opinions and show
that each person is a
valuable member of the
organization.
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Influencing People
● Management power
● Position power
● The manager’s position in the organization.
● Reward power
● The manager’s control of rewards/punishments.
● Expert power
● The manager’s knowledge and skill.
● Identity power
● The employee’s perception of the manager.
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Influencing People - Using Power Effectively
● Position/Reward Power
● Comes from manager’s
position in the company.
● If manager only has
position/reward power,
employees may do the
requested work but may not
do it willingly or well.
● Expert/Identity Power
● Comes from employees, not
position in the company.
● Employees grant these kinds
of power to managers they
believe deserve it.
● Employees consider the
manager an expert, they will
seek advice and help.
● Employees want the approval
or positive recognition of the
manager, they will work
cooperatively and support the
requests of the manager.
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3.2 Developing Leadership Skills
GOALS
● Discuss why businesses value leadership skills
of managers and employees.
● Identify and define five important human
relations skills.
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Leadership in Business
● Developing leadership qualities
● Leadership skills for managers
● Leadership skills for employees
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Human Relations
● Self-understanding
● Understanding others
● Communication
● Team building
● Developing job satisfaction
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3.3 Leadership Styles
GOALS
● Describe three views of employees that affect
the type and amount of management
supervision.
● Differentiate among three leadership styles.
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Management Views of Employees
● Close management
● Some managers believe employees will not perform their
work well unless they are closely managed.
● Limited management
● Managers who believe employees are interested in their
work because the job meets many of their personal needs.
● Flexible management
● Flexibility in managers’ views of employees permits
flexibility in their treatment. Employees tend to prefer
managers who are flexible enough to increase or decrease
the amount of supervision as needed.
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Leadership Styles
● Autocratic leadership
● Democratic leadership
● Open leadership
● Situational leadership
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Leadership Styles
● Autocratic Leader
● Gives direct, clear, and precise orders with
detailed instructions as to what, when, and how
work is to be done.
● Employees do not make decisions about the work
they perform.
● Efficiency is one of the reasons for using the
autocratic style.
● Disadvantage is it discourages employees ffrom
thinking about better ways of doing their work.
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Leadership Styles
● Democratic Leader
● One who encourages workers to share in making
decisions about their work and work-related
problems.
● Managers communicate openly with employees and
discuss problems and solutions even though manager
still makes final decision.
● Encourages employees to participate in planning
work, solving work problems, and making decisions.
● Disadvantage is that not all employees like to help
make decisions. Planning and discussions are time
consuming.
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Leadership Styles
● Open Leader
● Gives little or no direction to employees.
● Employees are expected to understand the work
that needs to be done and details/decisions are
left to employees or teams.
● Works best with experienced workers and where
few changes occur.
● Disadvantages are employees not being confident,
confused or having lack of direction.
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Leadership Styles
● Situational Leader
● Understands employees and job requirements and
matches actions and decisions to the circumstances.
● Most effective managers.
● Employees have different expectations of managers
and want to work for an effective manager who
understands tem and their needs.
● Understands the four management functions,
demonstrates leadership, uses human relations skills,
and chooses the most appropriate style.
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3.4 Employee Issues and Work Rules
GOALS
● Understand the manager’s role in recognizing
and dealing with employees’ personal issues.
● Describe the importance of establishing and
enforcing work rules.
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Managing Personal Issues
● Balancing work and personal life
● Handling difficult personal problems
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The Need for Work Rules
● Developing work rules
● Responding to rules violations
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Assignment
● http://www.fastcompany.com/magazine/98/ope,n_3ways-list.html
● Who are the greatest business leaders in U.S. history? Two Harvard
business professors surveyed 7,000 executives to answer that question.
The people who made the final list had to have changed the American way
of life in some significant way.
● Review the list of the top 50 business leaders identified through the link
above and select one. Use the Internet to learn more about that person
and prepare a two-page summary about his or her unique contributions,
including a works cited page (so 3 pages total: 2 pg summary with
conclusion, 1 works cited). Based on your research, would you agree the
person is one of the greatest business leaders in U.S. history?
● The written summary should present important information about the
person selected and the contributions made to business and society.
Conclusions should reflect student views of what makes a great business
leader.
● Drop essays to me using the drop it to me link on my webpage. Remember
to save your document as period, last name, leader.
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