INTERNATIONAL ISLAMIC UNIVERSITY

MALAYSIA

MME 3113 Engineering

Management
Lecture 7 Leadership*
Dr. Mustafizul Karim
Professor

*Adopted from Gareth R. Jones and Jennifer M. George Contemporary Management 4th Edition

Learning Objectives
When you complete this chapter, you
should be able to :
Explain what leadership is, when leaders are
effective and ineffective, and the sources of
power that enable managers to be effective
leaders.
Identify the traits that show the strongest
relationship to leadership, the behaviors
leaders engage in, and the limitations of the
trait and behavioral models of leadership.
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Learning Objectives
When you complete this chapter, you
should be able to :
Explain how contingency models of leadership
enhance our understanding of effective leadership
and management in organizations.
Describe what transformational leadership is, and
explain how managers can engage in it.
Characterize the relationship between gender and
leadership.
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The Nature of Leadership

Leadership
The process by which a person exerts influence over
others and inspires, motivates and directs their
activities to achieve group or organizational goals.
Effective leadership increases the firms ability to meet new
challenges.

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

The Nature of Leadership

Personal Leadership Style
The specific ways in which a manager chooses
to influence others - shapes the way that manager
approaches the other tasks of management
(organizing, planning, and controlling).
Some leaders may delegate and support
subordinates, while others are very authoritarian.

The Nature of Leadership

Personal Leadership Style
Read John Mackeys personal leadership style in
the Management Snapshot. (P-355, Essentials of
Contemporary Management, 2nd ed, Jones and
George)
He is casual and informal
Promotes ethical values
Puts the interests of customers and employees
before the interests of shareholders
Takes active steps to promote interests of Whole
Foods multiple stakeholders.
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Personal Leadership Style

and managerial Tasks An example
Michael Kraus owner and manager of a dry
cleaning store.
He takes hands-on approach to leadership
Has sole authority for determining work
schedules and job assignments for the 15
employees (an organizing task)
Makes all important decisions by himself (a
planning task)
Monitors his employees performance and
rewards top performers with pay increases (a
control task)

Personal Leadership Style

and managerial Tasks An example
Kraus personal leadership style is
effective in his organization.
His employees are generally motivated,
perform well, and are satisfied, and his
store is highly profitable.

Personal Leadership Style

and managerial Tasks
The challenge is for managers at all
levels to develop an effective
personal management style.
This challenge is often exacerbated
(exacerbate - make worse) when
times are tough due, for example,
to an economic downturn or a
decline in customer demand.

Personal Leadership Style

and managerial Tasks
Managers and leaders (a
distinction often made)
Managers are often engaged in
establishing and implementing
procedures and processes
while
Leaders look to the future, attract,
retain, motivate, inspire, and develop
relationships with employees based on
trust and mutual respect.

Leadership Across Cultures

Leadership styles vary not only among
individuals but also vary among different
countries or cultures.
European managers tend to be more peopleoriented than American or Japanese
managers.
Japanese managers are group-oriented, while
U.S managers focuses more on profitability.
Time horizons are also affected by cultures.
US Organizations tend to have a short-run profit
while Japanese tend to have a long-term growth
orientation.
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Sources of Managerial Power

The key to leadership
No matter what ones leadership style, a
key
component of effective leadership is
found in
the power the leader has to affect other
peoples
behavior and get them to act in certain
ways.
There are several types of power :
legitimate,
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reward, coercive, expert, and referent

Sources of Managerial Power

The key to leadership

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Power: The Key to Leadership

Legitimate Power

The authority that a manager has by virtue

of his or her position in the firm.
Example: the power to hire or fire employees.

Reward Power

The ability of a manager to give or withhold

tangible and intangible rewards.

Example: awarding pay raises or providing verbal

praise for good performance.

Effective managers use reward power to

signal to employees that they are doing a
good job.

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Power: The Key to Leadership

Coercive Power
The ability of a manager to punish others.
Examples: verbal reprimand (scold), pay cuts, and
dismissal
Limited in effectiveness and application; can have
serious negative side effects.

Expert Power
Power that is based on special knowledge,
skills, and expertise that the leader possesses.
First-line and middle managers have the most
expert power; most often consists of technical
ability.
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Power: The Key to Leadership

Referent Power
Power that comes from subordinates and
coworkers respect for the personal
characteristics of a leader which earns their
loyalty and admiration.
Usually held by and available for use by
likable managers who are concerned about
their workers.

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Empowerment: An Ingredient in
Modern Management
Empowerment
The process of giving workers at all levels
more authority to make decisions and the
responsibility for their outcomes.
Empowerment helps managers:
Get workers involved in the decisions.
Increase worker commitment and motivation.
Have time to focus on other issues.

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Leadership Models
Trait and Behavioral Models
These models are early approaches to leadership.
Sought to determine what effective leaders are like
as people and what they do that makes them so
effective.
The Trait Model focused on identifying personal
characteristics that cause effective leadership.
It is established that certain personal characteristics
do appear to be associated with effective leadership.
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Leadership Models
The traits and personal characteristics
related to effective leadership are

Intelligence,
Knowledge and expertise,
Dominance,
Self-confidence,
High Energy,
Tolerance to stress,
Integrity and honesty,
Maturity

Leadership Models
Are these traits alone can guarantee
effective leadership?
Answer is No.
This led to search for new explanations
for effective leadership.

Leadership Models
Behavioral Model
Rather than focusing on what effective
leaders are like (the traits they possess),
attention was diverted to what effective
leaders actually do (i.e. their behaviors)
Result is behavioral model.
Two basic kinds of leader behaviors were
identified consideration and initiating
structure.
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Behavioral model
Consideration: employee-centered
leadership behavior indicating that a
manager trusts, respects, and cares about
subordinates.
Initiating structure: job-oriented leadership
behavior that managers engage in to ensure
that work gets done, subordinates perform
their jobs acceptably, and the organization is
efficient and effective.

Behavioral model
Example - Michael Teckel, manager of shoe
store, uses both
Initiating structure when he establishes
weekly work, lunch, and break schedules to
ensure that store has enough salespeople on
the floor

Behavioral model
Consideration when he encourages his staff
to provide high-quality customer service and
to avoid a hard-sell approach.
Both behaviors (initiating structure and
consideration) are independent; managers
can be high on both, low on both, or high on
one and low on the other.