OBS 114
Fundamentals of business management
Unit 2: Chapter 3B: Leadership
1. THE NATURE OF LEADERSHIP
Definition Leadership
Process by which a person exerts influence over other people
&
inspires, motivates, & directs their activities to help achieve
group or organisational goals.
When leaders are ineffective, their influence does not
contribute to goal attainment
Effective leadership increases an organisations ability to
meet contemporary challenges
Personal Personal Managerial Style
leadership Specific ways in which a manager chooses to influence other
style and people.
managerial
tasks Manager
Organisational member who establish/ implement procedures/
processes
Leaders
Look to the future
develop relationships with employees
Servant Leaders
Shares power with followers & strives to ensure that followers’
needs are met so that they can develop as individuals whilst
their wellbeing is enhanced & attention is paid to those least
well-off.
Leadership European
styles across Humanistic
cultures people-orientated
reluctant to lay-off employees
Japanese
Emphasis on group rather than the individual.
Long-term growth orientation
American
Profit-driven
downplay of the employees’ needs & desires
tend to have short-term profit orientation
Power: The Legitimate Power
key to The authority a manager has by virtue of his/her
leadership position in an organisation’s hierarchy
, Reward Power
The ability of a manager to give/withhold tangible and
intangible rewards
Employees are motivated to perform at a high level
Coercive Power
The ability of a manager to punish others
Punishment can range from verbal reprimands to
reductions in pay or dismissal
Excessive use seldom produces high performance and
results in dangerous working conditions.
Expert Power
Authority is achieved through special knowledge, skills,
& expertise a leader possesses.
Referent Power
The functions of personal characteristics of a leader,
power that
comes from subordinates’ and co-workers’ respect,
admiration, & loyalty.
Empowermen The process of giving employees at all levels the authority to
t make decisions, be responsible for their outcomes, improve
quality & cut costs.
Increases the manager’s ability to get things done
because the manager has support of subordinates who
may have additional knowledge of the work/tasks
Increases the worker’s involvement, motivation &
commitment – helps ensure that they’re working
towards organisational goals
Gives managers more time to concentrate on their
pressing concerns because
2. TRAIT AND BEHAVIOUR MODELS OF LEADERSHIP
Trait model Identifies the personal characteristics that can cause effective
leadership
Intelligence Helps managers understand complex issues
and solve problems
Knowledge Helps managers make effective decisions
and
Expertise
Dominance Helps managers influence their subordinates
to achieve organisational goals
Self- Contributes to mangers effectively
Fundamentals of business management
Unit 2: Chapter 3B: Leadership
1. THE NATURE OF LEADERSHIP
Definition Leadership
Process by which a person exerts influence over other people
&
inspires, motivates, & directs their activities to help achieve
group or organisational goals.
When leaders are ineffective, their influence does not
contribute to goal attainment
Effective leadership increases an organisations ability to
meet contemporary challenges
Personal Personal Managerial Style
leadership Specific ways in which a manager chooses to influence other
style and people.
managerial
tasks Manager
Organisational member who establish/ implement procedures/
processes
Leaders
Look to the future
develop relationships with employees
Servant Leaders
Shares power with followers & strives to ensure that followers’
needs are met so that they can develop as individuals whilst
their wellbeing is enhanced & attention is paid to those least
well-off.
Leadership European
styles across Humanistic
cultures people-orientated
reluctant to lay-off employees
Japanese
Emphasis on group rather than the individual.
Long-term growth orientation
American
Profit-driven
downplay of the employees’ needs & desires
tend to have short-term profit orientation
Power: The Legitimate Power
key to The authority a manager has by virtue of his/her
leadership position in an organisation’s hierarchy
, Reward Power
The ability of a manager to give/withhold tangible and
intangible rewards
Employees are motivated to perform at a high level
Coercive Power
The ability of a manager to punish others
Punishment can range from verbal reprimands to
reductions in pay or dismissal
Excessive use seldom produces high performance and
results in dangerous working conditions.
Expert Power
Authority is achieved through special knowledge, skills,
& expertise a leader possesses.
Referent Power
The functions of personal characteristics of a leader,
power that
comes from subordinates’ and co-workers’ respect,
admiration, & loyalty.
Empowermen The process of giving employees at all levels the authority to
t make decisions, be responsible for their outcomes, improve
quality & cut costs.
Increases the manager’s ability to get things done
because the manager has support of subordinates who
may have additional knowledge of the work/tasks
Increases the worker’s involvement, motivation &
commitment – helps ensure that they’re working
towards organisational goals
Gives managers more time to concentrate on their
pressing concerns because
2. TRAIT AND BEHAVIOUR MODELS OF LEADERSHIP
Trait model Identifies the personal characteristics that can cause effective
leadership
Intelligence Helps managers understand complex issues
and solve problems
Knowledge Helps managers make effective decisions
and
Expertise
Dominance Helps managers influence their subordinates
to achieve organisational goals
Self- Contributes to mangers effectively
