Chapter 7 Leading Effectively

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Chapter 7: Leading Effectively: 

Chapter 7: Leading Effectively Copyright 2006. Based on Organizational Behavior & Management, An Integrated Skills Approach by Ramon J. Aldag and Loren W. Kuzuhara (2002), on slides prepared by the authors and Southwestern Thomson Learning, and on work by John Kevin Doyle.

Leadership and Management: 

Leadership and Management Leadership is the ability to influence others toward the achievement of goals. Leadership and management are generally viewed as distinct. Management aims to give consistency and order to organizations; leadership seeks to provide constructive and adaptive change. Management maintains, leadership changes.

Leadership and Management: 

Leadership and Management Management is directed toward coordinating activities in order to get the job done; leadership is concerned with the process of developing mutual purposes. Management relies more on a one-way authority relationship, while leadership relies more on a multidirectional influence relationship. “Managers are people who do things right and leaders are people who do the right things.”

New Perspectives on Leadership: 

New Perspectives on Leadership

New Perspectives on Leadership: 

New Perspectives on Leadership We used to discuss traits of successful leaders – who they are – now we ask how they behave – what they do. We used to ask “What works?” from a universal perspective. Now, recognizing situational differences, we ask, “What works when?” We used to focus on influence downward – how a leader influences followers. Now we recognize that the influence process is reciprocal – just as leaders are influencing followers, followers are influencing leaders.

New Perspectives on Leadership: 

New Perspectives on Leadership We used to assume leaders treated all followers similarly. Now we realize leaders treat different followers differently (for good or bad reasons). We used to focus on the relationship of leaders to their subordinates. Now we realize that leaders influence subordinates, peers, and hierarchical superiors. We used to focus on how a leader influences others through transactions. Now we look more broadly at how leaders transform followers and organizations.


Influence We defined leadership as the ability to influence others toward the achievement of goals. But what is influence? How does influence relate to things such as authority, power, and control? How does a leader gain the ability to influence?

Defining Terms: 

Defining Terms Authority: The right to influence (that is, exert force on) others. Conferred by the organization. Power: The ability to influence others. People in organizations may have power without authority, and authority without power. Influence: The exertion of force on others. Influence is power put into action; power is latent influence. Control: The exertion of enough force to change others’ behaviors. We may have a lot of power and exert a lot of influence without getting people to do what we want.

The Nature of Power: 

The Nature of Power Latent. Power is something that people have and may or may not choose to use. It is a weapon or tool; it may never be used, and just having it may makes its use unnecessary. Relative. The power one person has over another depends largely on things such as the expertise of one person relative to another and the hierarchical level of one relative to the other; a manager may have considerable power relative to one person and little or none relative to another.

The Nature of Power: 

The Nature of Power Perceived. Power is based on one person’s belief that another has certain characteristics. If I believe you have power over me, you do! Dynamic. Power relationships evolve over time as individuals gain or lose certain types of power relative to others.

Uses of Power: 

Uses of Power Power over: This is power used to make another person act in a certain way; it may be called dominance. Power to: This is power that gives others the means to act more freely themselves; it is sometimes called empowerment. Power from: This is power that protects us from the power of others; it may be called resistance.

Forms of Power: 

Forms of Power Coercive power involves forcing someone to comply with our wishes. With utilitarian power, compliance results from desires for rewards. Normative power rests on the employees’ belief that the organization has the right to govern their behavior.

Bases of Power: 

Bases of Power If we’re going to use power, we first have to get it. Traditionally, a distinction has been made between how people get power (termed interpersonal power bases) and how organizational subunits get power (termed subunit power bases). We’ll retain this distinction for now. However, the distinction is murky: people may use the so-called subunit power bases, and groups or subunits may use the so-called interpersonal power bases.

French & Raven’s Model: 

French & Raven’s Model There are five bases of interpersonal power: Legitimate: Based on one person’s belief that it is legitimate, or right, for another to give orders or otherwise exert force. Reward: Based on one person’s perception that another can influence the rewards s/he receives. Coercive: Based on one person’s perception that another can influence the punishments s/he receives.

French & Raven’s Model: 

French & Raven’s Model Referent: Based on a feeling of identity, or oneness, that one person has for another, or the desire for such identity. Expert: Based on one person’s perception that another has needed expertise in a given area.

Rational Persuasion: 

Rational Persuasion One way to get what you want is to make a compelling, persuasive argument. Persuasive communicators are well liked and eloquent and have high credibility. They gain credibility by their apparent expertise and by giving the impression that their motives are honorable. Persuasive messages are clear and are moderately inconsistent with the message receiver’s attitudes; a message that is entirely consistent with the receiver’s attitudes makes no difference, while a message that is totally inconsistent is likely to be rejected out of hand.

Liking and Ingratiation: 

Liking and Ingratiation We’re more willing to do something for people we like. Liking may be based on such things as: physical attractiveness compliments and flattery contact and cooperation association with other positive things social similarity Because people like others who are similar to them, there may be resulting, unconscious bias against people who are different.

Emotional Appeals: 

Emotional Appeals Friendly emotions are a useful influence approach. Negative or unpleasant emotions can also be tools of social influence, especially when the person displaying the emotions has more power than the target of the influence. Emotional contrast can be helpful; the presence of a nasty person makes a warm and friendly person seem even warmer and friendlier, and makes compliance with this person’s requests more likely. (Good cop, bad cop).

Social Proof: 

Social Proof Another way to get people to take some action is by convincing them that others are taking the same action; this is called social proof. The fact that others are doing something suggests that it is appropriate and socially acceptable. Bartenders who salt tip jars with a few dollar bills at the beginning of the evening and producers of charity telethons who spend much of their time listing viewers who have already contributed are exploiting social proof.

Social Influence Approaches: 

Social Influence Approaches We prefer some influence approaches (e.g., participation), to others (e.g., promising something in return for compliance). We select influence approaches to fit the situation: When we respond to an authoritarian manager, we tend to use approaches such as blocking and ingratiation. When we respond to participative managers, we are more likely to rely on rational persuasion.

Social Influence Approaches: 

Social Influence Approaches We use different influence approaches depending on goals: When we are trying to secure personal benefits we tend to use ingratiation. When we are trying to secure organizational goals we use a broader array of influence tactics.

Social Influence and Type of Involvement: 

Social Influence and Type of Involvement Compliance occurs when people do something because they don’t want to bear the costs of not doing it. Identification results when influence flows from a person’s attractiveness. Internalization takes place when we do something because we believe it is “the right thing to do.”

Autocratic and Democratic Styles: 

Autocratic and Democratic Styles Autocratic leaders make decisions themselves, without inputs from subordinates. Democratic leaders let subordinates participate in decision making. Democratic style is consistently linked to higher levels of subordinate satisfaction. Democratic style is usually positively, albeit weakly, related to productivity.

Autocratic and Democratic Styles: 

Autocratic and Democratic Styles The weak linkage between democratic style and performance may be because many factors determine whether a democratic style is appropriate, including the nature of the tasks and the characteristics of subordinates. When tasks are simple and repetitive, participation has little effect, because “there is little to participate about.” When subordinates are intelligent and desire independence, participation is especially important.

Autocratic and Democratic Styles: 

Autocratic and Democratic Styles Participation is empowering and satisfying, and it generates enthusiasm for the decisions that are reached. Participation takes time, and people sometimes don’t like to participate, especially if they care little about the decision. Since leaders may give more productive followers more responsibility, the relationship between democratic style and performance could be due to the impact of performance on style rather than vice versa.

Consideration and Initiating Structure: 

Consideration and Initiating Structure Effective leaders show concern for both the task and the people they lead. Without concern for task, the job won’t get done. Without concern for people, satisfaction, motivation, and team spirit will suffer and performance will ultimately suffer. Two sets of leader behaviors address these concerns: Consideration. Initiating structure. These are not conflicting sets of behaviors. Skillful leaders should be able to exhibit both.

Consideration and Initiating Structure: 

Consideration and Initiating Structure Consideration is behavior that shows friendship, mutual trust, respect, and warmth. Considerate leaders are friendly and approachable, look out for the personal welfare of team members, back up the members in their actions, and find time to listen to them. Initiating structure is behavior that helps clarify the task and get the job done. Initiating leaders provide definite standards of performance, set goals, organize work, emphasize meeting deadlines, and coordinate the work of team members.

Types of Leadership: 

Types of Leadership Transactional Leadership: Leadership based on transactions or exchanges – the promise, and provision, of rewards for good performance and threats or discipline for poor performance. Transformational Leadership: Leadership which transforms followers and organizations by: broadening and elevating the interests of employees generating awareness and acceptance of the purposes and missions of the group stirring employees to look beyond their own self interest for the good of the group

Transformational Leader Behaviors: 

Transformational Leader Behaviors Attributed charisma. Charisma is a Greek word meaning “Divinely inspired gift.” Leaders are seen as charismatic when they display a sense of power and confidence, remain calm during crisis situations, and provide reassurance that obstacles can be overcome. Idealized influence. Leaders display idealized influence when they talk about their important values and beliefs; consider the moral and ethical consequences of their decisions; display conviction in their ideals, beliefs, and values; and model values in their actions.

Transformational Leader Behaviors: 

Transformational Leader Behaviors Intellectual stimulation. Intellectually stimulating leaders help followers recognize problems and find ways to solve them. They encourage followers to challenge the status quo. They champion change and foster creative deviance. Inspirational leadership. Inspirational leaders give followers hope, energizing them to pursue a vision. They envision exciting new possibilities, talk optimistically about the future, express confidence that goals can be met, and articulate a compelling vision of the future.

Transformational Leader Behaviors: 

Transformational Leader Behaviors Individualized consideration. Transformational leaders show personal interest and concern in their individual followers, and they promote their followers’ self-development. They coach their followers, serve as their mentors, and focus them on developing their strengths.

Transformational Leadership Skills: 

Transformational Leadership Skills Anticipation – The ability to intuitively and systematically scan the changing environment. Visioning – The process of persuasion and example by which an individual or leadership team induces a group to take action that is in accord with shared purposes. Value-Congruence Skills – The ability to be in touch with followers’ needs in order to engage followers on the basis of shared motives, values, and goals.

Transformational Leadership Skills: 

Transformational Leadership Skills Empowerment – The ability to effectively share power with followers. Self-Understanding – Frameworks with which leaders understand both themselves and their followers.

Rebuilding the Garage at HP: 

Rebuilding the Garage at HP When Carly Fiorina was named the CEO of Hewlett-Packard in 1999, she became the first female CEO of a Top 20 corporation and was ranked by Fortune magazine as the most powerful woman in American business. When Fiorina took over the reins, HP was awash in question marks, with lackluster performance and a dearth of innovative offerings. Fiorina saw the company as sick and endangered – slow, complacent, and risk averse.

Rebuilding the Garage at HP: 

Rebuilding the Garage at HP Seeking to reinvent HP, Fiorina evoked the original spirit of the company – it was started in a garage and rode a history of innovation – and launched a $200 million brand and advertising campaign that included a logo with the word “invent.” Saying, “Preserve the best, reinvent the rest,” Fiorina pushed through more drastic changes in a short period of time than HP had ever seen before.

Rebuilding the Garage at HP: 

Rebuilding the Garage at HP She drew up a “rules of the garage” based on how the original HP operated. Among its mantras are “No politics, no bureaucracy” and “Radical ideas are not bad ideas.” Fiorina has revamped salary structures to tie pay more closely to performance, reinforced key values, and restructured the company. She is seeking to move the company to “Internet time.” And more recently …?

The Language of Leadership: 

The Language of Leadership Transformational leaders must be able to inspire; communicate their vision, ideals and beliefs; provide compelling reassurance; and challenge followers to think in new ways. To do all this, transformational leaders must be masters of communication; they must “speak the language of leadership.” Two aspects of the language of leadership – framing and rhetorical crafting – are crucial.


Framing Framing is presenting the message – defining the purpose in a meaningful way. Two elements of framing are amplifying values: the process of identifying and elevating certain values as basic to the overall mission belief amplification: the process of emphasizing factors that support or impede actions taken to achieve desired values.

Rhetorical Crafting: 

Rhetorical Crafting Rhetorical crafting is using symbolic language to give emotional power to the message. Rhetorical techniques of inspirational leaders include using metaphors, analogies, and stories, gearing language to the particular audience, and using speech techniques such as alliteration, repetition, and rhythm.

“I Have a Dream”: 

“I Have a Dream” In his famous “I Have a Dream” speech, Martin Luther King sculpted a masterpiece of language in the service of transformational leadership. King spoke of values he held dear, envisioned exciting new possibilities, assured his followers that they could overcome obstacles, and recognized followers’ individual needs and perspectives. He used words of inclusion, employed many metaphors, repeated key phrases again and again, and his voice rose in volume and emotion as the speech progressed.

Reflections on Leadership: 

Reflections on Leadership Pay careful attention to your formal or informal leadership roles. Successful leaders draw on a variety of power bases. Referent power has the broadest range, and heavy reliance on coercive power can be dangerous. Control over resources, information, and the problem-solving process all serve to increase power. A a leader must show concern for both task accomplishment and fulfillment of subordinate needs.

Reflections on Leadership: 

Reflections on Leadership The same style or behavior may not work in every situation. In deciding how to behave, consider the maturity and needs of your subordinates, the structure and other characteristics of the task, and the nature of the organization. Leadership can be frustrating. Structured tasks, separation of superiors and subordinates, bureaucratic constraints, and other factors can sometimes handcuff the leader. Try to be aware of, and deal with, leadership substitutes and neutralizers.

Reflections on Leadership: 

Reflections on Leadership As a leader you should not accept situations as fixed. You may be able to change task structure, your power, relations with subordinates, and other dimensions. The models reviewed in this chapter show that leader sensitivity, critical thinking, and flexibility are crucial. Remember that vision and inspiration are important. Don’t ignore transformational aspects of the leadership role.

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