Management
Management
Management
Management
MODULE
4
Hello, dear student! Welcome
to this module on principles of
management. This module MODULE CONTENTS
will walk you through the
ideas of management and its
framework. This module is
specifically crafted to focus
on the concept of CHAPTER 4:
management and activities Ø Defining leadership
that will assess your level in Ø Leadership styles
terms of skills and Ø Charismatic and
transformational leadership
knowledge with the
Ø Power, politics and
expectation to demonstrate leadership
through the learning Ø The importance of
materials. motivation
So, explore and experience Ø Theories of motivation
the module and be a step Ø Communication
closer to successful Ø Forms of communication
management.
Intended Learning
At the end of Module 4, you should be able to:
a. define leading;
b. know the leadership styles; and
c. value the importance of leading in management
G E T T I N GS T A R T E D
A C T I V I T Y
6. Job-relevant knowledge. Effective leaders have a high
ABSTRACTION degree of knowledge about the company, industry, and
technical matters. In-depth knowledge allows leaders
to make well-informed decisions and to understand the
implications of those decisions. 7. Extraversion. Leaders
Leadership are energetic, lively people. They are sociable,
Let’s begin by clarifying who leaders are and what assertive, and rarely silent or withdrawn.
leadership is. Our definition of a leader is someone
who can influence others and who has managerial
Leadership Styles
authority. Leadership is what leaders do. It’s a
process of leading a group and influencing that The University of Iowa studies explored three
group to achieve its goals. Are all managers leadership styles to find which was the most effective.7
leaders? Because leading is one of the four The autocratic style described a leader who dictated
management functions, yes, ideally, all managers work methods, made unilateral decisions, and limited
should be leaders. employee participation. The democratic style described
Leadership research in the 1920s and 1930s a leader who involved employees in decision making,
focused on isolating leader traits—that is, delegated authority, and used feedback as an
characteristics—that would differentiate leaders opportunity for coaching employees. Finally, the
from non leaders. Some of the traits studied laissez-faire style leader let the group make decisions
included physical stature, appearance, social class, and complete the work in whatever way it saw fit. The
emotional stability, fluency of speech, and researchers’ results seemed to indicate that the
sociability. Despite the best efforts of researchers, democratic style contributed to both good quantity and
it proved impossible to identify a set of traits that quality of work. Had the answer to the question of the
would always differentiate a leader (the person) most effective leadership style been found?
from a non leader. Unfortunately, it wasn’t that simple. Later studies of
Researchers eventually recognized that traits alone the autocratic and democratic styles showed mixed
were not sufficient for identifying effective leaders results. For instance, the democratic style sometimes
since explanations based solely on traits ignored produced higher performance levels than the
the interactions of leaders and their group autocratic style, but at other times, it didn’t. However,
members as well as situational factors. Possessing more consistent results were found when a measure of
the appropriate traits only made it more likely that employee satisfaction was used. Group members were
an individual would be an effective leader. more satisfied under a democratic leader than under
Therefore, leadership research from the late 1940s an autocratic one.
to the mid-1960s concentrated on the preferred
behavioral styles that leaders demonstrated. Charismatic and Transformational
Researchers wondered whether something unique Leadership
in what effective leaders did—in other words, in Many early leadership theories viewed leaders as
their behavior—was the key. transactional leaders; that is, leaders that lead primarily
. Drive. Leaders exhibit a high effort level. They by using social exchanges (or transactions).
have a relatively high desire for achievement, they Transactional leaders guide or motivate followers to
are ambitious, they have a lot of energy, they are work toward established goals by exchanging rewards
tirelessly persistent in their activities, and they for their productivity.26 But another type of leader—a
show initiative. 2. Desire to lead. Leaders have a transformational leader—stimulates and inspires
strong desire to influence and lead others. They (transforms) followers to achieve extraordinary
demonstrate the willingness to take responsibility. outcomes. Examples include Jim Goodnight of SAS
3. Honesty and integrity. Leaders build trusting Institute and Andrea Jung of Avon. They pay attention
relationships with followers by being truthful or to the concerns and developmental needs of individual
non deceitful and by showing high consistency followers; they change followers’ awareness of issues
between word and deed. 4. Self-confidence. by helping those followers look at old problems in new
Followers look to leaders for an absence of self- ways; and they are able to excite, arouse, and inspire
doubt. Leaders, therefore, need to show self- followers to exert extra effort to achieve group goals.
confidence in order to convince followers of the Transactional and transformational leadership
rightness of their goals and decisions. 5. shouldn’t be viewed as opposing approaches to getting
Intelligence. Leaders need to be intelligent enough things done.27 Transformational leadership develops
to gather, synthesize, and interpret large amounts from transactional leadership. Transformational
of information, and they need to be able to create leadership produces levels of employee effort and
visions, solve problems, and make correct performance that go beyond what would occur with a
decisions. transactional approach alone.
. Moreover, transformational leadership is more meet those expectations, and empathize with the needs of
than charisma, because the transformational leader their subordinates; they learned to project a powerful,
attempts to instill in followers the ability to question confident, and dynamic presence; and they practiced using
not only established views but those views held by a captivating and engaging voice tone. The researchers also
the leader.28 The evidence supporting the trained the student leaders to use charismatic nonverbal
superiority of transformational leadership over behaviors, including leaning toward the follower when
transactional leadership is overwhelmingly communicating, maintaining direct eye contact, and having
impressive. For instance, studies that looked at a relaxed posture and animated facial expressions. In
managers in different settings, including the military groups with these “trained” charismatic leaders, members
and business, found that transformational leaders had higher task performance, higher task adjustment, and
were evaluated as more effective, higher better adjustment to the leader and to the group than did
performers, more promotable than their group members who worked in groups led by non
transactional counterparts, and more charismatic leaders. One last thing we should say about
interpersonally sensitive.29 In addition, evidence charismatic leadership is that it may not always be
indicates that transformational leadership is strongly necessary to achieve high levels of employee performance.
correlated with lower turnover rates and higher It may be most appropriate when the follower’s task has an
levels of productivity, employee satisfaction, ideological purpose or when the environment involves a
creativity, goal attainment, follower well-being, and high degree of stress and uncertainty.37 This distinction
corporate entrepreneurship, especially in start-up may explain why, when charismatic leaders surface, it’s
firms. more likely to be in politics, religion, or wartime; or when a
Charismatic-Visionary Leadership business firm is starting up or facing a survival crisis. For
Jeff Bezos, founder and CEO of Amazon.com, is a example, Martin Luther King Jr. used his charisma to bring
person who exudes energy, enthusiasm, and about social equality through nonviolent means, and Steve
drive.31 He’s fun-loving (his legendary laugh has Jobs achieved unwavering loyalty and commitment from
been described as a flock of Canadian geese on Apple’s technical staff in the early 1980s by articulating a
nitrous oxide), but has pursued his vision for vision of personal computers that would dramatically
Amazon with serious intensity and has change the way people lived. Although the term vision is
demonstrated an ability to inspire his employees often linked with charismatic leadership, visionary
through the ups and downs of a rapidly growing leadership is different; it’s the ability to create and
company. Bezos is what we call a charismatic articulate a realistic, credible, and attractive vision of the
leader—that is, an enthusiastic, self-confident future that improves upon the present situation.38 This
leader whose personality and actions influence vision, if properly selected and implemented, is so
people to behave in certain ways. Several authors energizing that it “in effect jump-starts the future by calling
have attempted to identify personal characteristics forth the skills, talents, and resources to make it
of the charismatic leader.32 The most happen.”39 An organization’s vision should offer clear and
comprehensive analysis identified five such compelling imagery that taps into people’s emotions and
characteristics: they have a vision, the ability to inspires enthusiasm to pursue the organization’s goals. It
articulate that vision, a willingness to take risks to should be able to generate possibilities that are
achieve that vision, a sensitivity to both inspirational and unique and offer new ways of doing things
environmental constraints and follower needs, and that are clearly better for the organization and its members.
behaviors that are out of the ordinary.33 An Visions that are clearly articulated and have powerful
increasing body of evidence shows impressive imagery are easily grasped and accepted. For instance,
correlations between charismatic leadership and Michael Dell (Dell Computer) created a vision of a business
high performance and satisfaction among that sells and delivers customized PCs directly to customers
followers.34 Although one study found that in less than a week. The late Mary Kay Ash’s vision of
charismatic CEOs had no impact on subsequent women as entrepreneurs selling products that improved
organizational performance, charisma is still their self-image gave impetus to her cosmetics company,
believed to be a desirable leadership quality.35 If Mary Kay Cosmetics.
charisma is desirable, can people learn to be
charismatic leaders? Or are charismatic leaders born
with their qualities? Although a small number of
experts still think that charisma can’t be learned,
most believe that individuals can be trained to
exhibit charismatic behaviors.36 For example,
researchers have succeeded in teaching
undergraduate students to “be” charismatic. How?
They were taught to articulate a far-reaching goal,
communicate high performance expectations,
exhibit confidence in the ability of subordinates to
Power, Politics, and Leadership Organizations need effective leaders. Two issues
pertinent to becoming an effective leader are leader
training and recognizing that sometimes being an
Where do leaders get their power—that is, their
effective leader means not leading. Let’s take a look
right and capacity to influence work actions or
at these issues.
decisions? Five sources of leader power have been
LEADER TRAINING. Organizations around the globe
identified: legitimate, coercive, reward, expert, and
spend billions of dollars, yen, and euros on
referent.
leadership training and development.65 These
Legitimate power and authority are the same.
efforts take many forms—from $50,000 leadership
Legitimate power represents the power a leader has
programs offered by universities such as Harvard to
as a result of his or her position in the organization.
sailing experiences at the Outward Bound School.
Although people in positions of authority are also
Although much of the money spent on leader
likely to have reward and coercive power, legitimate
training may provide doubtful benefits, our review
power is broader than the power to coerce and
suggests that managers can do some things to get
reward. Coercive power is the power a leader has to
the maximum effect from such training.66 First, let’s
punish or control. Followers react to this power out
recognize the obvious. Some people don’t have what
of fear of the negative results that might occur if
it takes to be a leader. Period. For instance, evidence
they don’t comply. Managers typically have some
indicates that leadership training is more likely to be
coercive power, such as being able to suspend or
successful with individuals who are high self-
demote employees or to assign them work they find
monitors than with low self-monitors. Such
unpleasant or undesirable. Reward power is the
individuals have the flexibility to change their
power to give positive rewards. A reward can be
behavior as different situations may require. In
anything that a person values such as money,
addition, organizations may find that individuals with
favorable performance appraisals, promotions,
higher levels of a trait called motivation to lead are
interesting work assignments, friendly colleagues,
more receptive to leadership development
and preferred work shifts or sales territories. Expert
opportunities.67 What kinds of things can
power is power that’s based on expertise, special
individuals learn that might be related to being a
skills, or knowledge. If an employee has skills,
more effective leader? It may be a bit optimistic to
knowledge, or expertise that’s critical to a work
think that “vision-creation” can be taught, but
group, that person’s expert power is enhanced.
implementation skills can be taught. People can be
Finally, referent power is the power that arises
trained to develop “an understanding about content
because of a person’s desirable resources or
themes critical to effective visions.”68 We can also
personal traits. If I admire you and want to be
teach skills such as trust-building and mentoring.
associated with you, you can exercise power over
And leaders can be taught situational analysis skills.
me because I want to please you. Referent power
They can learn how to evaluate situations, how to
develops out of admiration of another and a desire
modify situations to make them fit better with their
to be like that person. Most effective leaders rely on
style, and how to assess which leader behaviors
several different forms of power to affect the
might be most effective in given situations.
behavior and performance of their followers. For
SUBSTITUTES FOR LEADERSHIP. Despite the belief
example, the commanding officer of one of
that some leadership style will always be effective
Australia’s state-of-the-art submarines, the HMAS
regardless of the situation, leadership may not
Sheean, employs different types of power in
always be important! Research indicates that, in
managing his crew and equipment. He gives orders
some situations, any behaviors a leader exhibits are
to the crew (legitimate), praises them (reward), and
irrelevant. In other words, certain individual, job,
disciplines those who commit infractions (coercive).
and organizational variables can act as “substitutes
As an effective leader, he also strives to have expert
for leadership,” negating the influence of the
power (based on his expertise and knowledge) and
leader.69 For instance, follower characteristics such
referent power (based on his being admired) to
as experience, training, professional orientation, or
influence his crew.
need for independence can neutralize the effect of
leadership. These characteristics can replace the
employee’s need for a leader’s support or ability to
create structure and reduce task ambiguity. Similarly,
jobs that are inherently unambiguous and routine or
that are intrinsically satisfying may place fewer
demands on leaders. Finally, such organizational
characteristics as explicit formalized goals, rigid rules
and procedures, or cohesive work groups can
substitute for formal leadership.
Motivation
Safety needs: A person’s needs for security and protection
from physical and emotional harm, as well as assurance
Motivation refers to the process by which a person’s
that physical needs will continue to be met.
efforts are energized, directed, and sustained toward
Social needs: A person’s needs for affection,
attaining a goal.4 This definition has three key
belongingness, acceptance, and friendship.
elements: energy, direction, and persistence. The
Esteem needs: A person’s needs for internal esteem
energy element is a measure of intensity, drive, and
factors such as self-respect, autonomy, and achievement
vigor. A motivated person puts forth effort and works
and external esteem factors such as status, recognition,
hard. However, the quality of the effort must be
and attention.
considered as well as its intensity. High levels of
Self-actualization needs: A person’s needs for growth,
effort don’t necessarily lead to favorable job
achieving one’s potential, and self-fulfillment; the drive to
performance unless the effort is channeled in a
become what one is capable of becoming.
direction that benefits the organization. Effort that’s
) In addition, Maslow separated the five needs into higher
directed toward, and consistent with, organizational
and lower levels. Physiological and safety needs were
goals is the kind of effort we want from employees.
considered lower-order needs; social, esteem, and self-
Finally, motivation includes a persistence dimension.
actualization needs were considered higher-order needs.
We want employees to persist in putting forth effort
Lower-order needs are predominantly satisfied externally
to achieve those goals. Motivating high levels of
while higher-order needs are satisfied internally. How does
employee performance is an important
Maslow’s theory explain motivation? Managers using
organizational concern and managers keep looking
Maslow’s hierarchy to motivate employees do things to
for answers. For instance, a Gallup poll found that a
satisfy employees’ needs. But the theory also says that
large majority of U.S. employees—some 73
once a need is substantially satisfied, an individual is no
percent—are not excited about their work. As the
longer motivated to satisfy that need. Therefore, to
researchers stated, “These employees have
motivate someone, you need to understand what need
essentially ‘checked out.’ They’re sleepwalking
level that person is on in the hierarchy and focus on
through their workday, putting time, but not energy
satisfying needs at or above that level. Maslow’s need
or passion, into their work.”6 It’s no wonder then
theory was widely recognized during the 1960s and 1970s,
that both managers and academics want to
especially among practicing managers, probably because it
understand and explain employee motivation.
was intuitively logical and easy to understand. But Maslow
provided no empirical support for his theory, and several
Theories of Motivation studies that sought to validate it could not.
ESSAY TIME!
Write in 100 words or more for this essay activity. If you are a leader what kind of
leadership style will you choose and why?
_
2 ACTIVITY 2
ESSAY TIME!
Cite a leader who made a difference in a specific field whether in business or in
politics and list down the significant things he/she had done to become a
successful leader.