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Chapter 11
Leadership
Authority
McGraw-Hill/Irwin
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
11-2
Learning Points
• In Part 4, The Empowerment of People, you will
learn the answers to these questions:
– What is your approach to leadership?
– Do you view leadership as a calling to serve?
– What practical steps can a leader take to empower
others and develop a high-performance workplace?
– What are your beliefs and practices regarding
quality in the workplace?
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Leadership Authority
• There are two views on leadership authority:
– Top-down
– Bottom-up
• The top-down theory holds”
– Leadership authority is based on
position in a social hierarchy
– Power flows from the highest
level to the lowest
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Top-Down View
• In an organizational pyramid:
– Workers support managers
– Managers support executives
• The pyramid serves as the
basis of most classical
organizational structures
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Top-Down View
• The top-down concept is the traditional view of
leadership in the U.S.
– The right of authority is derived from the right of
private property
– Owners have the right to manage their own affairs,
as long as they do not violate the rights of others
• Transfer of authority:
– Owners transfer power to a board of directors
– The Board appoints executives to manage
– Executives give authority to managers and
employees
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Transfer of Authority
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Bottom-Up View
• The bottom-up theory holds that:
– Power flows from below because
people can reject a directive by
saying no
– Saying yes or no affirms or
denies the authority of others
• This theory was first described by
Chester Barnard of AT&T
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Bottom-Up View
• According to Barnard, an order will be accepted if
four conditions are met:
– The person understands the order
– The order is consistent with the organization’s
goals
– The person believes that the order is compatible
with his/her interests
– The person is mentally and physically able to
comply
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Bottom-Up View
• Leaders must make sure that:
– Directives fall within their subordinates’ zones
of acceptance
– If not, orders may be met with resistance and even
hostility
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Top-Down Vs. Bottom-Up
• Both views have merit
– By accepting employment, employees
acknowledge:
• The authority of owners and managers to make
decisions and give orders
• Their duty to comply and obey
• The successful manager:
• Acknowledges the employees’ power to achieve
their own and organizational goals
• Has the consent of those being governed
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Top-Down Vs. Bottom-Up
• The servant leadership approach:
– Recognizes both the top-down and bottom-down
views
– Addresses the leadership-follower condition
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Servant Leadership
• Servant leadership is a calling to serve
– It begins with caring for and wanting to help others
– Great leaders are servants first
• People do not trust the self-server
– Trust is given to leaders who work for the common
good
– People choose to follow and work with servant
leaders
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Servant Leadership
• According to management author Robert
Greenleaf:
– The Journey to the East represented the meaning
of leadership transformation
– Servant leadership is the true
motivation to serve others
– Servant leaders stay in touch with
the challenges and problems of
others
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Access, Communication, and Support
• Servant leaders are committed to people
– This commitment is shown through access,
communication, and support
• Access:
– People need face-to-face
access to their leaders
– Email is not as effective
– Effective leaders recognize
“contact” as a primary task
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Access, Communication, and Support
• Communication:
– Good leaders understand the value of communication
• Even Julius Caesar in 59 B.C. kept people
informed with handwritten sheets and posters
– Meetings are an opportunity to:
• Share information
• Lay out work and anticipate problems
• Gather information
• Reinforce cooperative helpfulness and support
• Close the communication loop
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Access, Communication, and Support
• Support:
– People benefit from support in the form of
feedback
– As a rule, they do not get enough of it
– Support does not mean praise only
– Leaders know that praise without support is an
empty gesture
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Servant Leadership
• Servant leadership:
– Encourages trust, listening, and ethical use of
power and empowerment
– Uses the upside-down pyramid approach:
• Workers are near the top, supported by leaders
below them
• Each person provides added value
• The whole organization is devoted to satisfying
the customer
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The Upside-Down Pyramid Approach
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Servant Leadership
• Max DePree, in Leadership Is an Art, describes
servant leadership:
– The first responsibility of a leader is to define what
can be
– The last is to say thank you
– Between the two, the leader must be a servant and
a debtor
• Being a leader means having an opportunity to make
a difference in the lives of those who permit leaders
to lead
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Participative Leadership Philosophy
• Participative leadership:
– Begins with involving people
• Involvement leads to understanding, which
leads to commitment
– Taps the constructive power of people
– Creates a humanistic and productive workplace
– Means understanding the views and interests of all
affected
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Participative Leadership Philosophy
• To achieve an empowered workplace:
– Participative leaders must adopt the philosophy of
the Japanese Union of Scientists and Engineers
• Workers should be treated as human individuals
• Without due consideration, companies will lose
workers
• It is more desirable to work in a pleasant
environment
• A mechanized factory still requires control by a
workshop of people
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Participative Leadership Philosophy
• Example of Participative Leadership:
Jack Stack, open-book management
– Open-book management involves:
• Sharing financial information
with employees
• Encouraging them to
recommend ideas that
improve financial results
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Participative Leadership Philosophy
• According to management authors
Warren Bennis and Philip Slater:
– The shift toward participative leadership is
necessary for organizations to survive chronic
change
– Participative leadership is democratic
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Participative Leadership Philosophy
• Participative management involves a system of
beliefs and common values:
– Communication regardless of rank or power
– Reliance on consensus to manage conflict
– Influence based on technical competence and
knowledge
– An atmosphere that permits and encourages
emotional expression and task-oriented acts
– Acceptance of the inevitability of conflict between
the organization and individuals, and a willingness to
cope with it rationally
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Participative Leadership Philosophy
• The continuum of empowerment:
– Work systems and techniques for employee
participation are arranged along a continuum
– Employees on the left have less power and
involvement in decision making
– Employees on the right are more involved, yet not
so involved that owners and managers fear power
loss
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Participative Leadership Philosophy
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Participative Leadership Philosophy
• Participative leadership:
– Has roots in democratic ideals
– Lets leaders tap the constructive power of groups
• In Productive Workplaces, Marvin Weisbord
claims:
– The democratic process is the best procedure for
promoting decision-making
– It safeguards the conditions necessary for selfactualization
– It allows individuals to participate in decisions that
determine his/her conditions of life
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The Leadership Position
• Leadership is needed in all areas of society and at
all levels of responsibility
– Power and responsibility come with the office of
leadership
– Titles of leadership include:
• President
• Chief
• Captain
• Manager
• Director
• Supervisor
11-29
The Leadership Position
• Example of a leader using power effectively:
– Herb Kelleher, former CEO of Southwest Airlines
– Recognized as America’s most effective executive
• Involved in day-to-day operations
• Got to know people in a personal way
• Treated employees like customers
• Listened to people’s ideas
• Thought that saying “no” without listening was
an abuse of power and constrained thinking
11-30
Negative Consequences and Power
• Abraham Lincoln once said:
– Nearly everyone can stand adversity, but if you
want to test a person’s true character, give him
power.
• T. S. Elliot wrote:
– Half of the harm that is done in this world is
caused by people who have power and want to feel
important. They do not mean to do harm; they are
simply absorbed in the useless struggle to think
well of themselves.
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Negative Consequences and Power
• A study revealed the consequences of the negative
use of power in the medical world:
– There was a dramatic performance difference
between two groups
• One group unquestioningly followed the lead of
an autocratic physician
• The second group functioned as a team of
colleagues, all of whom could make suggestions
• The autocratic group had higher turnover, lower
efficiency, and twice the rate of patient deaths
11-32
Negative Consequences and Power
• The idea not abusing leadership power is very old:
– Lao-tzu, the founder of Taoism, had three things
that he prized:
• Gentleness
• Frugality
• Humility, which kept him from putting himself
before others
– Be gentle and you can be bold
– Be frugal and you can be liberal
– Put others first and you can become a leader
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Sources of Leadership Power
• There are two sources of the power used by
leaders:
– The power of the position
– The leader’s personal qualities
• Position powers:
– Reward
– Coercive
– Legitimate
– Information
• Person powers:
– Expert
– Referent
– Rational
– Charisma
11-34
Psychological Size and Communication
• Psychological size has relevance for people in
authority positions:
– Leaders can influence the communication process
– Employees are in a weaker position and depend
on the leader
– Can affect relationships and determine the way
things are done
– Others may fear a leader’s power and inhibit
behavior
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Abuse of Psychological Size
• One-way communication
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Psychological Size and Communication
• One-way communication can cause people to be:
– Reluctant to say or do anything that may offend the
leader
– Dependent on the leader to make all the decisions
– Resentful of the leader
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Psychological Size and Communication
• Factors that contribute to psychological bigness
– High-status position
– Using terminal statements
– Formal, distant manner
– Know-it-all, superior attitude
– Commanding physical appearance
– Power to make decisions
– Use of sarcasm, ridicule, cruel remarks
– Job competence
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Psychological Size and Communication
• Factors that contribute to psychological bigness
– Ability to express oneself
– Interrupting and shouting at others
– Public criticism
• Some items on this list are distinctly positive
– Factors in Green should not be changed
– All others alienate people and result in one-way
communication
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Psychological Size and Communication
• Leaders should avoid any behavior that demeans
or intimidates others
– The solution is to equalize psychological size
– Do not reduce your size so much that respect is
lost; it may not be regained
– Few can go from large to small psychological size
and back again without losing effectiveness
• Effective use of psychological size is shown on the
next slide
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Psychological Size and Communication
11-41
Psychological Size and Communication
• Leaders:
– Never obstruct the growth of others
– Show genuine interest in others
– Show that others are important by listening
– Assign work to “grow on”
• Developing two-way communication requires:
– Modeling an honest, open style of communication
– Being patient
– Drawing people out without evaluating their
remarks
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Guidelines for Two-Way Communication
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•
•
•
•
•
•
•
•
•
•
Stop talking
Put the talker at ease
Show that you want to listen
Remove distractions
Empathize with the person
Be patient
Hold your temper
Limit argument and criticism
Ask questions
Encourage clarification
Stop talking
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Guidelines for Two-Way Communication
• Effective leaders understand that:
– Psychological bigness and
overbearance is effective
for only a short time
– Dissatisfaction will cause
employees to rebel or escape
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Lessons from Gandhi
• Gandhi learned the power of civil disobedience and
patience from his wife:
– Most people will do what
they choose to do
– No amount of coaxing or force
can overcome an idea or
principle that is personally believed
– Great leaders guide and
inspire—not command and control