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 Chapter 1

Definition and Significance of

Leadership

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 Learning Objectives

• Define leadership and leadership effectiveness

• Discuss the major obstacles to effective leadership
• Compare and contrast leadership and management
• List the roles and functions of leaders and
managers
• Explain the changes in organizations and how they
affect leaders
• Summarize the debate over the role and impact of
leadership in organizations

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 The Leadership
Question

Some leaders are focused on getting

things done while others put taking
care of their followers first. Some look
at the big picture and others hone in
on the details. Is one approach better
than the other? Which one do you
prefer?

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 Definition of
Leadership

A leader is any person who

influences individuals and groups
within an organization, helps
them establish goals, and guides
them toward achievement of
those goals, thereby allowing
them to be effective.

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Key Elements of Leadership

• Group phenomenon
• Interpersonal influence
• Goal and action oriented
• Assumes hierarchy in a group

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 Effectiveness vs.
Success
Effective leaders Successful leaders
• Focus on the work • Focus on politics
• Focus on and networking
employees/follower • Promoted quickly
s • Network with
• Satisfied and outsiders
productive • Take care of
employees supervisor
• Take care of
employees/follower
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s
 Key Elements of
Effectiveness

1. Goal achievement
2. Smooth internal processes
3. External adaptability

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Definition of Effectiveness

Leaders are effective when their

followers achieve their goals, can
function well together, and can
adapt to changing demands from
external forces.

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 The Leadership
Question Revisited

• Leadership involves the tasks,

people, big picture, details, etc.
• What works depends on the leader,
the followers, and the situation
• Many styles and approaches can
work
• Understanding the situation is key

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Why Do We Need Leaders?

• To keep groups orderly

• To keep focus on group goals
• To accomplish complex tasks
• To help make sense of the world
by providing validation
• As a romantic ideal

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 Why Leaders Matter
• Leadership is one of many factors that affect the
performance of organizations
• Leadership can indirectly impact other
performance factors
• Leadership is essential in providing vision and
direction
• Identifying the situations in which leadership
matters is essential
• The combination of leaders with followers and
other organizational factors
• Makes an impact
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 Obstacles to Effective
Leadership

• Environmental uncertainty
• Organizational rigidity
• Falling back on old ideas and
simplistic solutions
• Established organizational
culture
• Inaccessible research
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 Leadership and
Management

Managers Leaders
• Focus on the present • Focus on the future
• Maintain the status • Create change
quo • Initiate policy
• Implement policy • Create new culture
• Maintain existing and structure
culture and structure • Establish emotional
• Remain aloof and bonds with
objective followers
• Use position power • Use personal power

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 Managerial Roles

• Figurehead • Entrepreneur
• Leader • Disturbance
• Liaison handler
• Monitor • Resource
• Disseminator allocator
• Spokesperson • Negotiator

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 Gender Differences in Roles

Male managers Female managers

• Unrelenting pace of work • Calm steady pace of work
• Do a wide variety of • Frequent breaks
tasks • Did not perceive
• Frequent interruptions interruptions
• Little time to • Schedule time for
communicate communication
• Few nonwork activities • Many nonwork activities
• Isolation • Connected to others
• Identity tied to work • Multifaceted identities
• Complex network • Complex network
• Prefer face-to-face • Prefer face-to-face
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Leader’s Role in Shaping
Organizational Culture

Leade
r
Vision and Strategy
mission Hiring and structure
Role
modeling Reward decisions
system

Organizational
culture

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 New Roles for
Leaders
Control-oriented leadership Result-oriented leadership
Plan Lead Plan
and
Organiz organize
e Control

Lead
Do
Control
Results
Do
Leader assumes responsibility
Follower assumes responsibility
Results
Follower assumes responsibility
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 Factors Fueling
Change

Increased
global and local
competition De
i de mo
r ldwcal ch gra
a n ph
Wo oliti es ge i c
p ang s
ch

Changes in
organizations and
their leadership

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 Diversity in the U.S.
Population

Hispanic; 16.7
Asian; 5
Native American; 1.2
African American; 13.1

White ; 78.1

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 U.S. Demographic
Trends
• In 2007 20.3% of the U.S population spoke a
language other than English at home
• More than half of the U.S. workforce consists of
women and minorities
• By 2016, minorities will make up one-third of the
U.S population
• By 2025
– The percentage of Europeans will drop from 72%
to 62%
– Hispanics will be 21% of the population
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 U.S. Demographic
Trends
• By 2025
– The average age will be close to 40 as
opposed to 35 in 2000
– More than 50% of the population in Hawaii,
California, New Mexico, and Texas will be
from a minority group
• By 2050
– The average U.S. resident will be non-
European
– Only 62% of the entrants into the labor
force will be white and half will be female
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 Barriers to Change

• Perceived financial pressures

• Short-term orientation
• Top management still focused on one
person
• Traditional organizations
• Employee input and creativity not fully
considered
• Focus on individual rather than group
performance
• Traditional management styles
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 What Do You
Do?

You have started on a new job, and based on

the interview and discussion with people
prior to accepting the job, you were led to
believe that the company strongly believes in
employee participation, engagement, and
flexibility. After a couple of months of
working with your new boss, however, all you
see is command-and-control, with little
opportunity for you to provide any input.

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Leadership Challenge
• Challenges for new leaders
– Learning new duties
– Adapting to new roles
– Maintaining old relationships and building new
networks
• Actions that help
– Training
– Clear message
– Patience
• Things to avoid
– Over managing—taking charge
– Jumping into action too fast—too many
changes
– Trying to remain “one of the gang”
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Leading Change: The
Container Store

• Unique culture based on

employees and customers
• Communication and inclusion are
at the heart of leadership
• Careful selection and training of
employees to fit the culture

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 Leadership in Action:
Neeleman

• Founder of several airlines

• Highly creative and entrepreneurial
• Focus on treating employees and
customers well
• Stay close to followers—listen
• Nimble organization and leader—
able to change

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Copyright © 2015 Pearson Education, Inc.