Managers ability to give or withhold tangible and intangible incentives is their ______ power.

The process by which a person exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals.

An individual who is able to exert influence over other people to help achieve group or organizational goals.

Personal L eadership S tyle

• Specific ways in which a manager chooses to influence others
  
• Shapes the way that manager approaches the other tasks of management
• Challenge is for managers at all levels to develop an effective personal management style
  

• Leaders look to the future, chart the course for the organization, and attract, retain, motivate, inspire, and develop relationships with employees
  
• Managers are organizational members who establish and implement procedures and processes to ensure smooth functioning and who are accountable for goal accomplishment.
  

Have a strong desire to serve and work for the benefit of others

• Share power with followers
  
• Strive to ensure that followers’ most important needs are met
  

Leadership Styles across Cultures

• European managers tend to be more humanistic or people-oriented than both Japanese & American managers.
• Japan - collectivistic culture - places prime emphasis on the group rather than the individual - (individual's own personalities, needs, and desires is minimized)
• Organizations in the United States tend to be profit-oriented and thus tend to downplay the importance of individual employees' needs and desires.
• European culture -- individualistic culture
• United States organizations tend to have a short-term profit orientation   ----> emphasis on short-term performance.
• Japanese --> long-term growth orientation --> emphasis on long-term performance

Power that a leader has to affect other people's behavior and get them to act in certain ways is the key component of effective leadership
Types of power: legitimate, reward, coercive, expert, and referent power.

Authority that a manager has by virtue of his or her position in an organizational hierarchy

Ability of a manager to give or withhold tangible and intangible rewards.

• Effective managers use their reward power to show appreciation for subordinates’ good work and efforts
  
• Ineffective managers use rewards in a controlling manner --> to show they have the upper hand.
  

Ability of a manager to punish others

• Excessive use of coercive power seldom produces high performance and is questionable ethically
  
• Punishment can range from verbal reprimands to reductions in pay or working hours to actual dismissal.

Power based on special knowledge , skills , and expertise that a leader possesses

• Expert power tends to be best used in a guiding or coaching manner
  
• Expert power varies depending on the leader's level in the hierarchy
• First-level and middle managers often have technical expertise relevant to the tasks their subordinates perform.
• Top managers derive expert power from their technical expertise
• Other top managers lack technical expertise, and derive their expert power from their abilities as decision makers, planners, and strategists.

• Power that comes from subordinates' and coworkers' respect, admiration, and loyalty.
  
• Informal power
  
• It is a function of the personal characteristics of a leader.
• Likable and whom subordinates wish to use as a role model tend to possess referent power.
• Managers can take steps to increase their referent power

• Spending time to get to know their subordinates, showing concern for them.

The e xpansion of employees ’ knowledge , tasks , and decision making responsibilities
Empowerment contributes to effective leadership by :

• Increasing a manager’s ability to get things done with the support and help of subordinates
  
• Increasing workers’ involvement, motivation, and commitment
  
• Enabling managers can spend less time on daily supervision activities
  

• Focuses on identifying personal characteristics that cause effective leadership
  
• Identifies traits like the leader's skills, abilities, intelligence, knowledge, expertise, dominance, integrity and honesty
  
• Some effective leaders do not possess all these traits, and some leaders who possess them are not effective in their leadership roles.

Identifies the two basic types of behavior that many leaders engage in to influence their subordinates—consideration and initiating structure

Behavior indicating that a manager trusts , respects , and cares about subordinates

Behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably , and the organization is efficient and effective

Contingency Models of Leadership

• Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he does, and the situation in which leadership takes place
  
• Effectiveness of a leader with certain traits is contingent on the situation or context in which he performs
  

Fiedler's Contingency Model

• Personal characteristics can influence leader effectiveness
  
• Leader style is the manager’s characteristic approach to leadership
  
• Identifies two basic leader styles: Relationship-oriented and task-oriented

Relationship-Oriented Leaders

• Leader Style
  
• Leaders whose primary concern is to develop good relations with their subordinates and to be liked by them.
  

• Leader Style
  
• Leaders whose primary concern is to ensure that subordinates perform at a high level and focus on task accomplishment
  

Situation characteristics - Fiedler's Model

Leadership style is an enduring characteristic
Three important situational characteristics determine how favorable a situation is for leading

• Leader–member relations
• Task structure
• Position power

• Situational Characteristic - Fiedler's model
  
• The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading.
  

• Situational Characteristic - Fiedler's model
• The extent to which workers tasks are clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it.
• When task structure is high, the situation is favorable for leading.
• When task structure is low, goals may be vague, subordinates may be unsure of what they should be doing or how they should do it, and the situation is unfavorable for leading.

• Situational Characteristic - Fiedler's model
• The amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization; a determinant of how favorable a situation is for leading.
• Leadership situations are more favorable for leading when position power is strong.

Combining Leader Style and the Situation

• Relationship-oriented leaders are most effective in moderately effective favorable situations for leading (IV, V, VI, VII)
• Task-oriented leaders are most effective in very favorable situations (I, II, III) or very unfavorable situations (VIII) for leading.

A contingency model of leadership proposing the effective leaders can motivate subordinates by :

• Clearly identifying the outcomes workers are trying to obtain from their jobs
  
• Rewarding workers for high-performance and goal attainment with the outcomes they desire
  
• Clarifying for subordinates the paths leading to the attainment of work goals
  

4 kinds of leadership behaviors in House’s Path-Goal Theory

1. Directive
2. Supportive
3. Participative
4. Achievement-oriented

• Directive behaviors include setting goals, assigning tasks, showing subordinates how to complete tasks, and taking concrete steps to improve performance
• May be beneficial when subordinates are having difficulty completing assigned tasks, but they might be detrimental when subordinates are independent thinkers who work best when left alone.

• Supportive behaviors include expressing concern for subordinates and looking out for their best interests
  
• Beneficial when subordinates are experiencing high levels of stress.

• Give subordinates a say in matters and decisions that affect them
  
• Effective when subordinates' support of a decision is required.

Achievement-oriented behaviors

• Motivate subordinates to perform at the highest level possible.
  

• May increase motivation of levels of highly capable subordinates who are bored from having too few challenges, but they might backfire if used with subordinates who are already pushed to their limit.

A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary.

• Characteristics of subordinates—such as their skills, abilities, experience, knowledge, and motivation
  
• Characteristics of the situation or context —such as the extent to which the work is interesting and enjoyable
  
• It is contingency model because it suggests that in some situations leadership is unnecessary

Substitutes for leadership can increase organizational efficiency and effectiveness because they free up some of managers' valuable time and allow managers to focus their efforts on discovering new ways to improve organizational effectiveness.

When managers empower their subordinates or use self-managed teams

the need for leadership influence from a manager is decreased because team members manage themselves.

Transformational Leadership

• 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
  

3 ways in which transformational leaders can influence their followers:

1. By being a charismatic leader
2. By intellectually stimulating subordinates
3. By engaging in developmental consideration.

Charismatic Leader - Transformational Leadership

Enthusiastic , self-confident leader who is able to clearly communicate his or her vision of how good things could be

• Their vision usually entails improvements in the organization’s structure, culture, strategy, decision making, and other critical processes
  
• "Larger than life"
• The essence of charisma is having a vision and enthusiastically communicating it to others.

Intellectual Stimulation - Transformational Leadership

Behavior a leader engages in to make followers be aware of problems and view those problems in new ways , consistent with the leader ’ s vision.

DevelopmentalConsideration - Transformational Leadership

• Behavior a leader engages in to support and encourage followers and help them develop and grow on the job.

Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance.
Managers who effectively influence their subordinates to achieve goals, yet do not seem to be making the kind of dramatic changes that are part of a transformational leadership, are engaging in transactional leadership.
Many transformational leaders engage in transactional leadership

• Reward subordinates for a job well done and notice and respond to substandard performance
  

When leaders engage in transformational leadership , their subordinates tend to have higher levels of job satisfaction and performance.

The number of women managers is rising but is still relatively low in the top levels of management
Stereotypes suggest women are supportive and concerned with interpersonal relations while men are seen as task-focused
Key research outcomes:

• Male and female managers do not differ significantly in their propensities to perform different leader behaviors
  
• Male and female managers tend to be equally effective as leaders
  

Emotional Intelligence and Leadership

A leader ’ s level of emotional intelligence plays a particularly important role in leadership effectiveness.
Emotional intelligence may enable leaders to :

• Motivate their subordinates to commit to their vision
  
• Develop a significant identity for their organization and instill high levels of trust and cooperation throughout the organization
  
• Respond appropriately when they realize they have made a mistake
  

What is it called when managers have the power to give or withhold incentives?

Which type of power gives managers the ability to punish others?

Which of the following managerial powers has the ability to give or withhold tangible and intangible rewards?

When managers have expert power this means that?