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Let’s begin by clarifying who leaders are and what      assertive, and rarely silent or withdrawn.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.