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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

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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.

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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..

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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

influenceinfluence over others and over others and inspiresinspires, , motivatesmotivates and and directsdirects their activities to their activities to achieveachieve group group or organizational or organizational goalsgoals..

• 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.

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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 Leaders may delegatedelegate and support subordinates, and support subordinates, while other leaders are very while other leaders are very authoritarianauthoritarian..

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.

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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 European managers tend to be more people-people-

orientedoriented than American or Japanese managers. than American or Japanese managers.Japanese managers are Japanese managers are group-orientedgroup-oriented, while , while

U.S managers focuses more on U.S managers focuses more on profitabilityprofitability..Time horizons also are affected by cultures.Time horizons also are affected by cultures.

• U.S. firms focus on U.S. firms focus on short-runshort-run efforts and efforts and resultsresults..

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

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

Harmonious learning process

Competition process

Professional consensus

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

Figure 10.1

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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 his or her positionposition in the firm. 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 Effective managers use reward power to signalsignal to employees that they are doing a good job.to employees that they are doing a good job.

合法權力

獎賞、資源掌控權力

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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 The ability of a manager to punishpunish others. 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 Power that is based on special knowledgeknowledge, ,

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

• First-lineFirst-line and middle managers have the most and middle managers have the most expert power; usually is expert power; usually is technicaltechnical ability. ability.

懲罰、強制權力

專家權威

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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 their loyaltyloyalty and and admirationadmiration..

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.

德高望重之威嚴

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。」

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

Empowerment helps managers:Empowerment helps managers:

• Get workers Get workers involvedinvolved in the decisions. in the decisions.

• Increase worker Increase worker commitmentcommitment and motivation. and motivation.

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

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

Take responsibility for reaching

success

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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 “Research shows that certain personal “traitstraits” do ” do appear to be connected to appear to be connected to effectiveeffective leadership. leadership.

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

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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

• Knowledge and expertiseKnowledge and expertise

• DominanceDominance

• Self-confidenceSelf-confidence

• High energyHigh energy

• Tolerance for stressTolerance for stress

• Integrity and honestyIntegrity and honesty

• MaturityMaturity

Ref. p.318

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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-centeredemployee-centered leadership 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-orientedjob-oriented leadership 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.

設身處地身先士卒視察勉勵

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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 situationsituation. .

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 subordinates and to be liked by themto 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.

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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—determines how —determines how much workers like and much workers like and trusttrust their leader. their leader.

• Task structureTask structure—the extent to which workers —the extent to which workers tasks are tasks are clear-cutclear-cut; clear issues make a situation ; clear issues make a situation favorable for leadership.favorable for leadership.

• Position PowerPosition Power—the amount of legitimate, —the 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.

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

Figure 10.2

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

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

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

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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 Clearly identifying the outcomesoutcomes workers 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 Clarifying the pathspaths to the attainment of the to the attainment of the goals, removing goals, removing obstaclesobstacles to performance, to performance, and expressing and expressing confidenceconfidence in worker’s in worker’s ability.ability.

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

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

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

very very challengingchallenging goals, goals, believingbelieving in worker’s 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.

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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 leadership unnecessaryunnecessary. Possible substitutes can . Possible substitutes can be found in: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 Characteristics of context—the extent to which work is interesting and fun.is interesting and fun.

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

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

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TransformationalTransformational Leadership LeadershipTransformationalTransformational Leadership 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 organization by providing feedbackfeedback to the to the worker.worker.

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

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

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Being a Being a CharismaticCharismatic Leader LeaderBeing a Being a CharismaticCharismatic Leader Leader

• Charismatic LeaderCharismatic LeaderAn An enthusiasticenthusiastic, , self-confidentself-confident transformational 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 Being excitedexcited and clearly communicating excitement and clearly communicating excitement to subordinates.to subordinates.

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

• EmpoweringEmpowering workers to help with solutions. workers to help with solutions.

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

Subordinated with honor

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TransactionalTransactional Leadership LeadershipTransactionalTransactional Leadership Leadership

• Transactional Leadership Transactional Leadership Leadership 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 “Transactional leaders “exchangeexchange” rewards for ” rewards for performance and punish failure.performance and punish failure.

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

Either Carrot or Stick!

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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.StereotypesStereotypes suggest women are supportive 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 Women are more participativeparticipative than men because 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 managers and they have better interpersonalinterpersonal skills.skills.

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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.

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Extending readingsExtending readingsExtending readingsExtending readings

• Drucker, Peter F. (2002), Drucker, Peter F. (2002), The Effective The Effective Executives RevisedExecutives Revised, 1st edition, HarperCollins , 1st edition, HarperCollins Publisher. Publisher.

• Drucker, Peter F. (1993), Drucker, Peter F. (1993), The Practice of The Practice of ManagementManagement, Reissue edition, HarperCollins , Reissue edition, HarperCollins Publisher.Publisher.