Leadership, Influence, and Communication

in Business

© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/IrwinIntroduction to Business

Chapter Six

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Chapter 6 Leadership, Influence, and Communication

in Business

1. Appreciate a manager’s ability to effectively lead, influence, and persuade other people influences a company’s efficiency, effectiveness, and profitability.

2. Identify the five sources of a leader’s power and understand how leadership involves the effective use of power to influence other people.

3. Differentiate between four main approaches to leadership and recognize effective leadership involves matching a leadership approach to the characteristics of employees and the work situation.

4. Identify five characteristics of effective leaders.5. Understand the vital role communication plays in influencing

others in a business organization and describe a model of persuasive communication.

6. Define organizational politics and understand how political tactics are used to influence and persuade others.

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Chapter 6 Leadership, Influence, and Communication

in Business

• Leadership the use of one’s personality, beliefs, values, social skills, knowledge, and power to influence other peoples’ thoughts, feelings, and behavior.

• Effective leader a person who can persuade his or her subordinates to work hard and perform at high levels.

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership• Managers are responsible to the stakeholders• To effectively and efficiently use the resources of

land, labor and capital • To plan, organize, lead and control the organization to

the accomplishment of it mission

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Chapter 6 Leadership, Influence, and Communication

in Business

Power

• The ability of one person to make other people or groups do something that they would not have otherwise done.

• Five types - one's ability to make others do something they would not otherwise have done

• Evaluate leadership style and relate to types of power. What is the relationship?

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Chapter 6 Leadership, Influence, and Communication

in Business

Power• Legitimate the rightful authority to direct and control employees’

activities.• Reward a leader’s ability to recognize and acknowledge employees

who perform their jobs in a way that meets or exceeds the requirements of their job and company.

• Referent leader’s ability to influence and persuade other people because of personal qualities that make them attractive to others and effective in social situation.

• Expert a person’s recognized expertise or superior skill in a particular functional area of business

• Coercive leader’s ability to sanction or punish employees who fail to meet job and company requirements.

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Chapter 6 Leadership, Influence, and Communication in

Business

Power• Inherent in these five functions of power is an incentive

system (a system of rewards and sanctions that shapes, influences, and controls the way employees behave at work

• The charismatic leader usually possesses more than one type (an exceptionally effective leader whose referent and expert power results in followers perceiving them as someone who personifies a company and what it stands for)

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Chapter 6 Leadership, Influence, and Communication

in Business

Power• Power is influence and impacts upon work attitudes

and behaviors

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Chapter 6 Leadership, Influence, and Communication

in Business

Power• Critically important work behaviors • Level of job effort• Both quality and quantity and reliability of work

performance • Unexplained absences

• Intention to quit job and leave company

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership and Power• Effective leadership results when managers use their

power in ways that promote work behaviors and attitudes that lead to higher employee performance

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership and Power• The critical ingredient is the correct use of the

different sources of power• Evaluate illustration of leadership theory and

relate to the types of power

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership Theory• The contingency theory aligns employee

characteristics with the workplace setting• The theory that effective leadership occurs when

managers adopt a leadership approach that matches the characteristics of their employees and the work setting.

• Four possible approaches to leadership and has the ability to enhance work behaviors and attitudes

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership Theory• Approaches to leadership include

- Directive (provide guidance & training, scheduling, maintaining clear work performance standards, etc)

- Supportive (being friendly and approachable, treating worker as equal, acting in a non-threatening way)

- Participative (involving employees in work scheduling, encouraging suggestions and consulting.

- Achievement-oriented (setting challenging goals, demonstrating confidence in employees)

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership Theory• Two determining parts of this theory are the employee

characteristics and workplace settings to effectively blend the correct approach to leadership

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Chapter 6 Leadership, Influence, and Communication

in Business

Leadership Theory• Employee characteristics include:

- skill level- achievement need - locus of control- nature of tasks/job- group cohesiveness

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Chapter 6 Leadership, Influence, and Communication

in Business

Five characteristics of effective leaders 1) intuition, intelligence, and cognitive ability

2) energy, drive, and need for achievement

3) good ethics and moral integrity

4) emotional intelligence and empathy

5) self-confidence and internal locus of control

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Chapter 6 Leadership, Influence, and Communication

in Business

Characteristics of effective leaders• The more that managers possess these characteristics

the more likely they are to function effectively as leaders

• Evaluate Four Traits of Effective Leaders and relate to types of power and influence

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Chapter 6 Leadership, Influence, and Communication

in Business

Influence• A leader’s goal is to influence and persuade employees to

develop work attitudes and behaviors that increase a company’s efficiency and effectiveness

• Evaluate influence within leadership relating to the types of power and key behaviors

• Evaluate the role of leadership in the Breaking Thru video and relate to influence and communication

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Chapter 6 Leadership, Influence, and Communication

in Business

Influence• Managers share information by effective

communication and assuring there is understanding of the message

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Chapter 6 Leadership, Influence, and Communication

in Business

Communication• The communications

model- Sender- Message- Receiver

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Chapter 6 Leadership, Influence, and Communication

in Business

Communication• To communicate effectively there must be feedback• The most persuasive communication method is face-

to-face meetings

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Chapter 6 Leadership, Influence, and Communication

in Business

Organizational Politics• The activities that managers and employees at

all levels engage in to increase their power and their ability to influence and persuade others so they can achieve their goals

• Evaluate CIO Judi Zito’s five survival techniques and relate to Leadership

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Chapter 6 Leadership, Influence, and Communication

in Business

Organizational Politics• Political tactics are the specific courses of action

managers and employees engage in to gain the support of, and overcome the resistance of opposition of, other people

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Chapter 6 Leadership, Influence, and Communication

in Business

Organizational Politics• Political tactics include

- attacking and blaming others versus making everyone a winner

- reducing uncertainty

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Chapter 6 Leadership, Influence, and Communication

in Business

Organizational Politics• Political tactics include

- using objective information, without a replacement in a central position

- building coalitions and alliances

• Evaluate the role of leadership in the Exceptional Entrepreneur video and relate to influence and communication