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Chapter 7 Leadership, Exams of Business Economics

Chapter 7 Leadership Exam 2024/2025

Typology: Exams

2024/2025

Available from 04/17/2025

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Chapter 7 Leadership
Organizational leadership✔✔interpersonal process that involves attempts to
influence other people in attaining group goals
-anyone can exhibit
1. only apply to those in leadership positions?
2. deliberate influence exercised
3. compliance of others voluntary
Effective leadership✔✔influence that assists a group or organization to perform
successful and meet its goals and objectives
Leadership vs. Management✔✔Leadership: involves creating vision for
organizations/units, setting, communication and promoting new direction
goals/procedures/inspiring subordinates
Managerial: dealing with interpersonal conflicts, planning, organizing,
implementing goals set by others
-leadership is a component of management, but management is more than just
leadership
Power✔✔capacity/ability to influence
-more power=more potential for influence
-change course of events, overcome resistance, motivate people
-possession and use
Position power✔✔based on person's rank and position in an organization
A) Legitimate
B) Reward
C) Coercive
Legitimate power/formal authority✔✔position power granted to person by the
organization
Reward power✔✔position power based on person's authority to distribute awards
-bonuses/rewards
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Chapter 7 Leadership

Organizational leadership✔✔interpersonal process that involves attempts to influence other people in attaining group goals -anyone can exhibit

  1. only apply to those in leadership positions?
  2. deliberate influence exercised
  3. compliance of others voluntary

Effective leadership✔✔influence that assists a group or organization to perform successful and meet its goals and objectives

Leadership vs. Management✔✔Leadership: involves creating vision for organizations/units, setting, communication and promoting new direction goals/procedures/inspiring subordinates Managerial: dealing with interpersonal conflicts, planning, organizing, implementing goals set by others -leadership is a component of management, but management is more than just leadership

Power✔✔capacity/ability to influence -more power=more potential for influence -change course of events, overcome resistance, motivate people -possession and use

Position power✔✔based on person's rank and position in an organization A) Legitimate B) Reward C) Coercive

Legitimate power/formal authority✔✔position power granted to person by the organization

Reward power✔✔position power based on person's authority to distribute awards -bonuses/rewards

Coercive power✔✔position power based on person's authority to administer punishments either by withholding something or giving out something undesired

Personal Power✔✔based on individual's characteristics A) Expert B) Referent

Expert power✔✔personal power; specialized knowledge not readily available -not confined to organizational levels

Referent power✔✔personal power; when people are attracted to/identify with another person -cost free asset -unclear how this power is attained and developed -respect

How much power to use?✔✔too little=inactivity too much= resistance, resentment

Which types of power to use?✔✔situation -what happened before? what change is needed circumstance -referent and expertise are low cost

How can power be put to use?✔✔influence tactic: specific behavior to affect the behavior/attitudes of others -rational appraising, inspirational appeal, consultation, personal appeal, pressure

Should power be shared?✔✔empowerment: sharing of power with others -facilitate commitment, learning, innovation

Locus of leadership✔✔1. leader

  1. followers
  2. situation

-recognition for accomplishment, concern for welfare

Approaches to leadership behavior emphasizing leadership✔✔1. Blake and Mouton's managerial grid

  1. transformational leadership
  2. transactional leadership
  3. authentic leadership

Blake and Mouton's✔✔focused on task and people orientation -need both emphasis on leader and not follower/situation -"universal leadership theory"

Transformative leadership✔✔leadership that motivates followers to ignore self- interests and work for the larger good of the organization to achieve significant accomplishments; emphasis is on articulating a vision that will convince subordinates to make major changes

Transactional leadership✔✔leadership that focuses on motivating followers' self- interests by exchanging rewards for their compliance; emphasis is on having subordinates implement procedures correctly and make needed, but routine, changes

Authentic leaedership✔✔leaders have high self awareness/regulation

FOLLOWERS✔✔learning to be a good follower is essential to being a good leaders -leaders influence followers but also act to followers responses

  1. Hershey and Blanchard's situational leadership model

Hershey and Blanchard's situational leadership model✔✔earliest model proposes different types of appropriate leadership are contingent on readiness to learn new task -ability, willingness -ignores type of interaction subordinates have, culture etc

Leader-follower relationship✔✔1. leader-member exchange (LMX): belief proposing that leaders develop different levels of relationships with different subordinates and quality of relationships affects subordinates behavior -stranger-acquantaince-partner

SITUATIONS✔✔1. tasks: nature of work -structured/unstructured -high.lower level of worker discretion

  1. organizational context: immediate group/larger organization

Leadership approaches emphasizing SITUATION✔✔1. Fielder's leadership contingency theory

  1. House's path-goal theory

Fielder's leadership contingency theory✔✔emphasizes the degree to which a leader is especially task-oriented or person-oriented and the relative degree of favorability of the situation for the leader. -type of leader -degree of favorability of situation for leader -more difficult for leaders to change their styles than the situation -non-universal

House's path-goal theory✔✔contingency theory focusing on leader's role in increasing subordinate satisfaction and effort by increasing personal payoffs for goal attainment -what types of behavior on their part might work best in what types of situations -motivation and expectancy theories -influence for desired rewards -works better in certain situations -modify styles to fit situation

Substitutes for leadership✔✔1. ability, experience, training

  1. instrinsically interesting work
  2. advisory/staff support
  3. cohesive work group
  4. direct feedback