Essentials of
Contemporary
Management
Chapter
10
Leadership and Management
PowerPoint Presentation by Charlie Cook
© Copyright The McGraw-Hill Companies, Inc., 2004. All rights reserved.
Learning Objectives
• After studying the chapter, you should be able to:
Describe 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.
Explain how contingency models of leadership
enhance our understanding of effective leadership
and management in organizations.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–2
Learning Objectives (cont’d)
Describe what transformational leadership is,
and explain how managers can engage in it.
Characterize the relationship between gender and
leadership.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–3
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.
• Effective leadership increases the firm’s ability to
meet new challenges.
• Leader
An individual who is able to exert influence over
other people to help achieve group or
organizational goals.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–4
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 tasks of management.
• Leaders may delegate and support subordinates,
while other leaders are very authoritarian.
The challenge is for managers at all levels to
develop an effective personal management style.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–5
Leadership Across Cultures
• Leadership styles vary among different
countries or cultures.
European managers tend to be more peopleoriented than American or Japanese managers.
Japanese managers are group-oriented, while U.S
managers focuses more on profitability.
Competition
process
Time horizons also are affected by cultures.
• U.S. firms focus on short-run efforts and results.Harmonious
learning
• Japanese firms have a longer-run perspective.
process
• European firms fall somewhere between the U.S.
Professional
and Japanese orientations.
consensus
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10–6
Sources of Managerial Power
Figure 10.1
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10–7
Power: The Key to Leadership
• Legitimate Power
合法權力
The authority that a manager has by virtue of his or
her position in the firm.
• Example: the power to hire or fire employees.
獎賞、資源掌控權力
• Reward Power
The ability of a manager to give or withhold
tangible and intangible rewards.
• Example: awarding pay raises or providing verbal
praise for good performance.
Effective managers use reward power to signal to
employees that they are doing a good job.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–8
Power: The Key to Leadership (cont’d)
• Coercive Power
懲罰、強制權力
The ability of a manager to punish others.
• Examples: verbal reprimand, pay cut, and
dismissal.
• Is limited in effectiveness and application; can
have serious negative side effects.
• Expert Power
專家權威
Power that is based on special knowledge, skills,
and expertise that the leader possesses.
• First-line and middle managers have the most
expert power; usually is technical ability.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–9
Power: The Key to Leadership (cont’d)
• Referent Power
德高望重之威嚴
Power that comes from subordinates’ and
coworkers’ respect for the personal characteristics
of a leader who has earned their loyalty and
admiration.
Usually held by and available for use by likable
managers who are concerned about their workers.
論語學而篇，子曰：「君子不重，則不威，學則
不固。主忠信，無友不如己者，過則勿憚改。」
論語子張篇，子夏曰：「君子有三變：望之儼然，
即之溫也，聽其言也厲。」
© Copyright 2004 McGraw-Hill. All rights reserved.
10–10
Empowerment: An Ingredient in
Modern Management
• Empowerment
The process of giving workers at all levels more
authority to make decisions and the responsibility
for their outcomes.
Empowerment helps managers:
• Get workers involved in the decisions.
• Increase worker commitment and motivation.
• Have time to focus on other issues.
• Effective managers usually empower
substantial authority to workers.
© Copyright 2004 McGraw-Hill. All rights reserved.
Take
responsibility
for reaching
success
10–11
Leadership Models
• Trait Model
An attempt to identify personal characteristics that
are the causes for effective leadership.
• Research shows that certain personal “traits” 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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10–12
Traits and Personal Characteristics
Related to Effective Leadership
• Intelligence
• Knowledge and expertise
• Dominance
• Self-confidence
• High energy
Ref. p.318
• Tolerance for stress
• Integrity and honesty
• Maturity
© Copyright 2004 McGraw-Hill. All rights reserved.
10–13
Leadership Models (cont’d)
• Behavioral Model
Identifies two basic types of behavior leaders
engaged in to influence their subordinates:
設身處地
身先士卒
視察勉勵
• Consideration: employee-centered leadership
behavior indicating that a manager trusts,
respects, and cares about subordinates.
• Initiating structure: job-oriented leadership
behavior that managers use to ensure that work
gets done, subordinates perform acceptably,
and the organization is efficient and effective.
• Both behaviors are independent; managers can
be high or low on both behaviors.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–14
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.
• 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.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–15
Fiedler’s Model
• Situation Characteristics
How favorable a situation is for leading to occur.
• Leader-member relations—determines how
much workers like and trust their leader.
• Task structure—the extent to which workers
tasks are clear-cut; clear issues make a situation
favorable for leadership.
• 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.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–16
Fiedler’s Contingency Theory of Leadership
Figure 10.2
© Copyright 2004 McGraw-Hill. All rights reserved.
10–17
Fiedler’s Model in Application
• Combines considerations of leader-member
relations, task structure, and position power to
identify leadership situations.
Identifies situations where given types of managers
might perform best.
Leader style is a characteristic managers cannot
change; managers will be most effective when:
• Placed in situations that suit their leader style.
• The situation can be changed to fit the
manager’s leader style.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–18
House’s Path-Goal Theory
• A contingency model of leadership proposing
the effective leaders can motivate
subordinates by:
1. Clearly identifying the outcomes workers are
trying to obtain from their jobs.
2. Rewarding workers for high-performance and goal
attainment with the outcomes they desire
3. Clarifying the paths to the attainment of the goals,
removing obstacles to performance, and
expressing confidence in worker’s ability.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–19
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.
Participative behavior: give subordinates a say
in matters that affect them.
Achievement-oriented behavior: Setting very
challenging goals, believing in worker’s abilities.
• Which behavior to be used depends on the
nature of the subordinates and the tasks.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–20
The Leader Substitutes Model
• Leadership Substitute
Acts in the place of a leader and makes leadership
unnecessary. 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.
Worker empowerment or self-managed work teams
reduce leadership needs.
Managers should be aware that they do not always
need to directly exert influence over workers.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–21
Transformational Leadership
• Leadership that:
Makes subordinates aware of the importance of
their jobs and performance to the organization by
providing feedback to the worker.
Makes subordinates aware of their own needs for
personal growth and development.
Motivates workers to work for the good of the
organization, not just themselves.
© Copyright 2004 McGraw-Hill. All rights reserved.
10–22
Being a Charismatic Leader
• Charismatic Leader
Subordinated with honor
An enthusiastic, self-confident transformational leader
able to clearly communicate his or her vision of how
good things could be by:
• 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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10–23
Transactional Leadership
• Transactional Leadership
Leadership that motivates subordinates by rewarding
them for high performance and reprimanding them
for low performance.
• Transactional leaders “exchange” rewards for
performance and punish failure.
• Transactional leaders push subordinates to
change but do not seem to change themselves.
• Transactional leaders do not have the “vision” of
the transformational leader.
Either Carrot or Stick!
© Copyright 2004 McGraw-Hill. All rights reserved.
10–24
Gender and Leadership
• The number of women managers is rising but
is still low in the top levels of management.
Stereotypes suggest women are supportive and
concerned with interpersonal relations. Similarly,
men are seen as task-focused.
• Research indicates that there is no gender-based
difference in leadership effectiveness.
• Women are more participative than men because
they adopt the participative approach to
overcome subordinate resistance to them as
managers and they have better interpersonal
skills.
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10–25
Emotional Intelligence and Leadership
• The Moods of Leaders:
Affect their behavior and effectiveness as leaders.
Affect the performance of their subordinates.
• 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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10–26
Extending readings
• Drucker, Peter F. (2002), The Effective
Executives Revised, 1st edition, HarperCollins
Publisher.
• Drucker, Peter F. (1993), The Practice of
Management, Reissue edition, HarperCollins
Publisher.
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10–27