《Contemporary Management》chpt13 Leadership

13 Leadership OThe McGraw-Hill Companies. Inc, 2000

13-1 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Leadership 13

13-2 eadership Leadership is the process where a person exerts influence over others and inspires. motivates and directs their activities to achieve goals. Effective leadership increases the firms ability to meet new challenges. Leader: The person exerting the influence Personal leadership style: the ways leaders choose to influence others Some leaders delegate and support subordinates, others are very authoritarian a Managers at all levels have their own leadership style " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-2 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Leadership Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firm’s ability to meet new challenges. ◼ Leader:The person exerting the influence. ◆ Personal Leadership Style: the ways leaders choose to influence others. ◼ Some leaders delegate and support subordinates, others are very authoritarian. ◼ Managers at all levels have their own leadership style

13-3 Leadership Across Cultures o Leadership styles may vary over different cultures European managers tend to be more people-oriented than American or Japanese managers o Japanese culture is very collective oriented, while American focuses more on profitabilit Time horizons also are affected by cultures .U.S firms often focus on short-run efforts o Japanese firms take a longer-term outlook " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-3 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Leadership Across Cultures ⚫Leadership styles may vary over different cultures. ◼ European managers tend to be more people-oriented than American or Japanese managers. ◆ Japanese culture is very collective oriented, while American focuses more on profitability. ◼ Time horizons also are affected by cultures. ◆ U.S. firms often focus on short-run efforts. ◆ Japanese firms take a longer-term outlook

13-4 Sources of power Figure 13.1 Reward Power Legitimate Coercive Power Power Enable managers to be leaders influence subordinates te achieve goals Expert Referent Power Power win/MeGraw-Hill OThe McGraw-Hill Companies. Inc, 2000

13-4 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Sources of Power Reward Power Legitimate Power Coercive Power Expert Power Referent Power Enable managers to be leaders & influence subordinates to achieve goals Figure 13.1

13-5 Sources of power ● used to affect other’ s behavior and get then to act in given ways Legitimate Power: managers authority resulting by their management position in the firm o Can be power to hire/fire workers assign work Reward Power: based on the manager's ability to give or withhold rewards e Pay raises. bonuses verbal praise o Effective managers use reward power to signal employees they are doing a good job " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-5 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Sources of Power ⚫Used to affect other’s behavior and get them to act in given ways. ◼ Legitimate Power: manager’s authority resulting by their management position in the firm. ◆ Can be power to hire/fire workers, assign work. ◼ Reward Power: based on the manager’s ability to give or withhold rewards. ◆ Pay raises, bonuses, verbal praise. ◆ Effective managers use reward power to signal employees they are doing a good job

13-6 Sources of power Coercive Power: based in ability to punish others Ranges from verbal reprimand to pay cuts to firing o Can have serious negative side effects Expert Power: based on special skills of leader first middle managers have most expert power e Often found in technical ability Referent Power: results from personal characteristics of the leader which earn workers respect loyalty and admiration Usually held by likable managers who are concerned about their workers " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-6 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Sources of Power ◼ Coercive Power: based in ability to punish others. ◆ Ranges from verbal reprimand to pay cuts to firing. ◆ Can have serious negative side effects. ◼ Expert Power: based on special skills of leader. ◆ First & middle managers have most expert power. ◆ Often found in technical ability. ◼ Referent Power: results from personal characteristics of the leader which earn worker’s respect, loyalty and admiration. ◆ Usually held by likable managers who are concerned about their workers

13-7 Empowerment oProcess of giving workers at all levels authority to make decisions and the responsibility for their outcomes Empowerment helps managers: Get workers involved in the decisions Increase worker commitment and motivation lo focus on other issues o Effective managers usually empower substantial authority to workers " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-7 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Empowerment ⚫Process of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers: Get workers involved in the decisions. ◼ Increase worker commitment and motivation. ◼ To focus on other issues. ⚫Effective managers usually empower substantial authority to workers

13-8 Leadership Models Trait Model: sought to identify personal 1 characteristics responsible for effective leadership. Research shows that traits do appear to be connected to effective leadership Many"traits "are the result of skills and knowledge. not all effective leaders possess all these traits Behavioral Model: Identifies types of behavior. Consideration: leaders show care toward workers Employee-centered Initiating Structure: managers take steps to make sure work is done Done by assigning work, setting goals, etc. Job-oriented " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-8 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Leadership Models – Trait Model: sought to identify personal characteristics responsible for effective leadership. ▪Research shows that traits do appear to be connected to effective leadership. –Many “traits” are the result of skills and knowledge. –Not all effective leaders possess all these traits. – Behavioral Model: Identifies types of behavior. ▪Consideration: leaders show care toward workers. –Employee-centered. ▪Initiating Structure: managers take steps to make sure work is done. –Done by assigning work, setting goals, etc. –Job-oriented

13-9 Consideration &e Initiating Structure Figure 13.2 Rate manager from 1(never does) to 5(always does) NOTE: for full survey, see Figure 13.2 in text Consideration Initiating Structure Is friendly, approachable Tries out ideas in the group Do little things to make it fun Lets group members know to be a member of group what is expected Give advance notice of changes Assigns workers to tasks Willing to make changes Schedules work to be done Treats group members Maintains standards as equals of performance " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-9 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Consideration Initiating Structure Consideration & Initiating Structure Is friendly, approachable Do little things to make it fun to be a member of group Give advance notice of changes Willing to make changes Treats group members as equals Tries out ideas in the group Lets group members know what is expected Assigns workers to tasks Schedules work to be done Maintains standards of performance Rate manager from 1 (never does) to 5 (always does) NOTE: for full survey, see Figure 13.2 in text Figure 13.2

13-10 Contingency Models Fiedler 's Model: effective leadership is contingent on both the characteristics of the leader and the situation Leaderstyle: the enduring characteristic approach to leadership a manager uses Relationship-oriented: concerned with developing good relations with workers o Task-oriented: concerned that workers perform so the Job gets done " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000

13-10 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Contingency Models Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. ◼ Leader style: the enduring, characteristic approach to leadership a manager uses. ◆ Relationship-oriented: concerned with developing good relations with workers. ◆ Task-oriented: concerned that workers perform so the job gets done