Chapter 10 – Leaders and Leadership
The Nature of Leadership
Leadership: The process by which an individual exerts influence over other people and inspires, motivates, and
directs their activities to help achieve group or organizational goals.
Leader: An individual who is able to exert influence over other people to help achieve group or organizational
goals. Besides the attainment of goals, leaders also need to create a competitive advantage, ethical behaviour,
and manage a diverse workforce fairly.
Personal leadership style and managerial tasks
The specific ways in which a manager chooses to influence other people, how he approaches planning,
organizing and controlling.
There is a difference between leaders and managers, managers are the organizational members who establish
and implement procedures and processes to ensure smooth functioning and goal accomplishment.
Servant Leader: a leader who has a strong desire to serve and work for the benefit of others.
Leadership Styles across Cultures
Leadership styles vary among individuals and countries or cultures. Such as time horizons, individualism, or
cultures. A key component in leadership is power.
Power: The Key to Leadership
Legitimate power: the authority that a manager has by virtue of his position in an organization’s hierarchy. For
example, the power to hire new people, assign projects to subordinates, or monitor the work of subordinates.
Reward power: the ability of a manager to give or withhold tangible and intangible rewards such as pay raises,
bonuses, verbal praise, or respect. Managers often use their reward power to motivate their subordinates.
Coercive power: the ability of a manager to punish others. This is the contrary of reward power. (Relying too
much on punishment is ineffective and ethically questionable)
Expert power: power based on special knowledge, skills and expertise that a leader possesses. The nature of
expert power varies, depending on the leader’s level in hierarchy. First and middle managers have technical
expertise relevant the tasks their subordinates perform. This power gives them considerable influence over
their subordinates.
Referent power: a function of the personal characteristics of a leader; it is the power that comes from
subordinates’ and co-workers’ respect, admiration, and loyalty to the manager.ac
Empowerment: An Ingredient in Modern Management
Empowerment: The expansion of employees’ knowledge, tasks, and decision-making responsibilities. (i.e. be
responsible for their outcomes, improve quality, and cut costs)
When leaders empower their subordinates, the subordinates typically take over some responsibilities and
authority of the leader.
The Nature of Leadership
Leadership: The process by which an individual exerts influence over other people and inspires, motivates, and
directs their activities to help achieve group or organizational goals.
Leader: An individual who is able to exert influence over other people to help achieve group or organizational
goals. Besides the attainment of goals, leaders also need to create a competitive advantage, ethical behaviour,
and manage a diverse workforce fairly.
Personal leadership style and managerial tasks
The specific ways in which a manager chooses to influence other people, how he approaches planning,
organizing and controlling.
There is a difference between leaders and managers, managers are the organizational members who establish
and implement procedures and processes to ensure smooth functioning and goal accomplishment.
Servant Leader: a leader who has a strong desire to serve and work for the benefit of others.
Leadership Styles across Cultures
Leadership styles vary among individuals and countries or cultures. Such as time horizons, individualism, or
cultures. A key component in leadership is power.
Power: The Key to Leadership
Legitimate power: the authority that a manager has by virtue of his position in an organization’s hierarchy. For
example, the power to hire new people, assign projects to subordinates, or monitor the work of subordinates.
Reward power: the ability of a manager to give or withhold tangible and intangible rewards such as pay raises,
bonuses, verbal praise, or respect. Managers often use their reward power to motivate their subordinates.
Coercive power: the ability of a manager to punish others. This is the contrary of reward power. (Relying too
much on punishment is ineffective and ethically questionable)
Expert power: power based on special knowledge, skills and expertise that a leader possesses. The nature of
expert power varies, depending on the leader’s level in hierarchy. First and middle managers have technical
expertise relevant the tasks their subordinates perform. This power gives them considerable influence over
their subordinates.
Referent power: a function of the personal characteristics of a leader; it is the power that comes from
subordinates’ and co-workers’ respect, admiration, and loyalty to the manager.ac
Empowerment: An Ingredient in Modern Management
Empowerment: The expansion of employees’ knowledge, tasks, and decision-making responsibilities. (i.e. be
responsible for their outcomes, improve quality, and cut costs)
When leaders empower their subordinates, the subordinates typically take over some responsibilities and
authority of the leader.
