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Chapter One
Definition and Significance of
Leadership
Chapter 1 Leadership
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall
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Learning Objectives
 Define leadership and leadership effectiveness.
 Explain why people need leadership.
 Compare and contrast leadership and
management.
 List the roles and functions of leaders and
managers.
 Summarize the debate over the role and impact
of leadership in organizations.
Chapter 1 Leadership
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall
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Key Elements of the Definition of
Leadership
The various definitions of leadership share 3 common
elements:
 Leadership is a group phenomenon;there can be no leaders
without followers. As such, leadership always involves
interpersonal influence or persuasion.
 Leadership is goal-oriented; leaders guide and influence
others through a certain course of action or the achievement
of certain goals.
 Leadership involves some form of hierarchy in groups:in
some cases, the hierarchy is formal and well defined, with
the leader at the top;in other cases, its is informal and
flexible
Chapter 1 Leadership
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall
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Definition of Leadership
A leader is any person who influences
individuals and groups within an
organization, helps them in the
establishment of goals, and guides
them toward achievement of those
goals, thereby allowing them to be
effective
Chapter 1 Leadership
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Definition of Leadership
Effectiveness
Leaders are effective when their
followers achieve their goals, can
function well together, and can
adapt to the changing demands
from external forces
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Key Elements of Effectiveness
 Goal achievement, which includes meeting
financial goals,producing quality products or
services, addressing the needs of customers..
 Smooth internal processes, including group
cohesion, follower satisfaction and efficient
operations.
 External adaptability, which refers to a
group’s ability to change and evolve
successfully.
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Why Do We Need Leaders?
 To keep groups orderly:The existence of groups
requires some form of organization and
hierarchy.Whereas, individual group members
may have common goals, they also have
individual needs and aspirations. Leaders are
needed to pull the individuals together, organize
and coordinate their efforts.
 To accomplish complex tasks: Groups allow us to
accomplish tasks that individuals alone could not
undertake or complete.leaders are needed to
facilitate that accomplishment, to provide goals
and directions and coordinate activities.Leaders
are the instrument of goal achievement
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 To help make sense of the world by providing
validation:Leaders help us make sense of the
world, establish social reality, and assign meaning
to events and situations that may be ambiguous.
 As a romantic ideal: Leadership is needed to
fulfill our desire for mythical or romantic figures
who represent us and symbolize our own and
culture’s ideals and accomplishments.
Chapter 1 Leadership
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Leadership and Management
Managers
Leaders
 Focus on the present
 Focus on the future
 Maintain status quo
 Create change
 Implement policy
 Initiate policy
 Maintain structure
 Create culture and
structure
 Remain aloof and
objective
 Use position power
 Establish emotional
link with followers
 Use personal power
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Managerial Roles
 Figurehead
 Spokesperson
 Leader
 Entrepreneur
 Liaison
 Disturbance handler
 Monitor
 Resource allocator
 Disseminator
 Negotiator
Chapter 1 Leadership
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Leader’s Function in Shaping
Culture
LEADER
Role
Model
Reward
System
Hiring
Strategy &
Decisions Structure
Organizational
Culture
Chapter 1 Leadership
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Functions of the leader: creation and
maintenance of an organizational culture
Organizations often comes to mirror their founders 'personalities.The
founder style or the founder’s family has an impact on the culture
of an organization.If the founder is workaholic and control
oriented, the organization is likely to push for fast-paced decision
making and be centralized. If the founder is participative and
team oriented, the organization will be decentralized and open.
Leaders are role models for other organizational members. Followers
take their cues from the leaders on what behaviors are and are not
acceptable.A key function of leaders is to manage the emotions of
group members. Followers observe their leaders’ emotional
reactions and take their cue from them to determine appropriate
reactions.
Chapter 1 Leadership
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall
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Functions of the leader: creation and
maintenance of an organizational culture
Other means through which the leader shapes culture are by
decisions regarding the reward system and by controlling
decisions standards. In one organization, rewards (financial and
nonfinancial) go to only the highest contributors to the bottom
line. In another, accomplishments such as contribution to cultural
diversity or the degree of social responsibility are also valued and
rewarded.
The power of a leader to make decisions for the organization about
structure and strategy is another effective means of shaping
culture. A highly decentralized and organic structure is likely to
be the result of an open and participative culture, whereas a
highly centralized structure will go hand in hand with a
mechanistic/bureaucratic culture.
Chapter 1 Leadership
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall
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New Roles for Leaders
Control-oriented Leadership
Result-oriented Leadership
Lead
Plan
Plan
Lead
Control
Control
Do
Do
Results
Results
Leader
assumes
responsibility
Chapter 1 Leadership
Leader and follower
assume
responsibility
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 New Roles for leadership
Employees in traditional organizations are responsible only for
production; The planning, leading, and controlling functions,
as well as the responsibility for results, fall on the manager.
An increasing number of organizations, however, are shifting
the activities and responsibilities typically associated with
managers to employees. Managers are expected to provide
the vision, get the needed resources to employees, act as
support persons, and get out of employees way
The employees in turn learn about the strategic and financial
issues related to their job, plan their own activities, set
production goals, and take responsibility for their results.
Researchers found that in the most admired companies, the key
priorities were teamwork, customer focus, fair treatment of
employees, initiative, and innovation
Chapter 1 Leadership
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Factors Fueling Change
Changes in
Organizations
and Leadership
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 Factors fueling changes
 A number of external and internal organizational factors are
driving the changes in our organizations and in the role of
leaders and managers.
First, political changes worldwide are leading to more
openness and democracy
Second, with increasing global and local competition and
complex and fast-changing technologies, numerous
organizations struggle for their survival and to justify their
existence. Many are forced to reconsider how they provide
goods and services to their customers.
Another key factor fueling changes in leadership are the
demographic changes in a lot of countries. These
demographic changes lead to increased diversity in the
various groups and organizations.
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 Additionally, employees attain increased levels of education
today, and the younger generation enters the workplace with
expectations of participation and autonomy. The younger
generations entering the workforce expect fast promotions,
challenging learning opportunities, training, and worklifebalance
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Diversity in U.S. Population
0.1%
5.5%
White alone
2.4%
3.6%
0.9%
Black alone
American Indian and
Alaska Native alone
12.3%
Asian alone
Native Hawaiian and other
Pacific Islander alone
Some other race alone
75.1%
Two or more races
Source: U.S. Census Bureau, Census 2000 http://www.census.gov/population/
Chapter 1 Leadership
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall
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Barriers to Change
 Perceived financial pressures
 Top management still focused on one
person
 Traditional hierarchies
 Employee input not fully considered
 Focus on individual performance
 Traditional management
Chapter 1 Leadership
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