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Fundamentals oF manaGement BY: LAI VAN TAI LAI VAN TAI Chapter LEADING Learning Objectives After studying the chapter, you should be able to:   Describe what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders Characterize the relationship between gender leadership  Explain what motivation is and why managers need to be concerned about it  Describe from the perspectives of expectancy theory and equity theory what managers should to have a highly motivated workforce  Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance Learning Objectives After studying the chapter, you should be able to:     Explain why effective communication helps an organization gain a competitive advantage Describe the communication process, and explain the role of perception in communication Define information richness, and describe the information richness of communication media available to managers Describe the communication networks that exist in groups and teams The Nature of Leadership  Leadership  The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals   Effective leadership increases the firm’s ability to meet new challenges Leader  An individual who is able to exert influence over other people to help achieve group or organizational goals The Nature of Leadership  Personal Leadership Style  The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management   Leaders may delegate and support subordinates, while others are very authoritarian The challenge is for managers at all levels to develop an effective personal management style Leadership Across Cultures  Leadership styles may vary among different countries or cultures    European managers tend to be more people-oriented than American or Japanese managers Japanese managers are group-oriented, while U.S managers focuses more on profitability Time horizons also are affected by cultures    U.S firms often focus on short-run efforts and results Japanese firms have a longer-run perspective European firms fall somewhere between the U.S and Japanese orientations Sources of Managerial Power Power: The Key to Leadership  Legitimate Power  The authority that a manager has by virtue of his or her position in the firm   Example: the power to hire or fire employees Reward Power  The ability of a manager to give or withhold tangible and intangible rewards   Example: awarding pay raises or providing verbal praise for good performance Effective managers use reward power to signal to employees that they are doing a good job Power: The Key to Leadership (cont’d)  Coercive Power  The ability of a manager to punish others    Examples: verbal reprimand, pay cuts, and dismissal Limited in effectiveness and application; can have serious negative side effects Expert Power  Power that is based on special knowledge, skills, and expertise that the leader possesses  First-line and middle managers have the most expert power; most often consists of technical ability Learning Theories   Theories that focus on increasing motivation and performance by linking outcomes to performance and the attainment of goals Learning  A relatively permanent change in person’s knowledge or behavior that results from practice or experience Additional Suggestions for Motivating Employees Recognize individuals Match people to jobs Use goals Make goals attainable Further Suggestions for Motivating Employees Individualize rewards Link rewards to performance Check the system for equity Don’t ignore money Communication and Management  Communication   The sharing of information between two or more individuals or groups to reach a common understanding Importance of Good Communication     Increased efficiency in new technologies and skills Improved quality of products and services Increased responsiveness to customers More innovation through communication Communication Issues  Verbal Communication   The encoding of messages into words, either written or spoken Nonverbal  The encoding of messages by means of facial expressions, body language, and styles of dress Information Richness of Communication Media Figure 15.2 The Communication Process  Phases of the Communication Process:    Transmission phase in which information is shared by two or more people Feedback phase in which a common understanding is assured The process starts with a sender (an individual or group) who wants to share information  Senders must decide what information to share and puts the message into symbols or language (encoding)  Noise: anything harming the communication process The Communication Process Figure 15.1 The Communication Process (cont’d)  Messages are transmitted over a medium to a receiver   Medium: the pathway over which the message is transmitted (e.g., telephone, written note, email) Receiver: the person getting the message    The receiver decodes (interprets) the message, allowing the receiver to understand the message This is a critical point: failure to properly decode the message can lead to a misunderstanding Feedback by receiver informs the sender that the message is understood or that it must be re-sent Organization Communication Networks  Organization Chart  A pictorial representation of formal reporting channels in an organization     Communication in an organization flows through formal and informal pathways Vertical communications flow up and down the corporate hierarchy Horizontal communications flow between employees of the same level Informal communications can span levels and departments—the grapevine is an informal network carrying unofficial information throughout the firm Formal and Informal Communication Networks in An Organization Figure 0.4 Communication Networks in Groups and Teams Communication Skills for Managers  Barriers to Effective Communication       Messages that are unclear, incomplete, difficult to understand Messages sent over the an inappropriate medium Messages with no provision for feedback Messages that are received but ignored Messages that are misunderstood Messages delivered through automated systems that lack the human element Communication Skills for Managers  Managers as Senders       Send clear and complete messages Encode messages in symbols the receiver understands Select a medium appropriate for the message and, importantly, one that is monitored by the receiver Avoid filtering (holding back information) and distortion as the message passes through other workers Ensure a feedback mechanism is included in the message Provide accurate information to avoid rumors Communication Skills For Managers  Managers as Receivers       Pay attention to what is sent as a message Be a good listener: don’t interrupt Ask questions to clarify your understanding Be empathetic: try to understand what the sender feels Understand linguistic styles: different people speak differently Speed, tone, pausing all impact communication  This is particularly true across cultures and managers should expect and plan for this ... Upper Saddle River, New Jersey Alderfer’s ERG Theory Highest-level needs Lowest-level needs Needs Description Examples Growth Self-development, creative work Continually improve skills Relatedness... horizons also are affected by cultures    U.S firms often focus on short-run efforts and results Japanese firms have a longer-run perspective European firms fall somewhere between the U.S and Japanese... concerned with interpersonal relations Similarly, men are seen as task-focused   Research indicates that actually there is no gender-based difference in leadership effectiveness Women are seen to

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