Reading: Lesson 1 - The Importance of Leadership

2.1.A - The Importance of Leadership

1. LEADERSHIP IN BUSINESS

1. Anyone who holds a responsible position in an organization must have a number of qualities to meet his or her responsibilities successfully. One of the key qualities for a manager at any level is effective leadership. If you plan a career in business, you need to develop your leadership skills.
   
2. Many years ago, managers were totally responsible for all decisions in a business. Today, many businesses seek input from employees and want them to be involved in problem solving and decision making. Managers need to be leaders of their employees as well as managers of the business. Employees who are interested in moving into management positions in the future can look for opportunities to take on leadership roles as a way to develop important skills needed by managers.
   
3. Managing a business, whether large or small, is certainly not simple. Managers are responsible for getting the work of an organization accomplished through its employees. To be most productive, employees must understand why their work is important and be motivated to do the work. Generally, employees want to contribute to the success of the business. They appreciate managers who value their ideas as well as their work. Employees respond well to managers who are also effective leaders. A leader earns the respect and cooperation of employees to effectively accomplish the work of the organization. Leadership is the ability to influence individuals and groups to cooperatively achieve common goals.
   
4. Leaders have excellent human relations skills. Human relations refers to how well people get along with each other when working together. A group of people who respect each other and work well together will likely do better work than groups characterized by negative feelings, misunderstandings, hostility, and a lack of respect for each other. In a negative group atmosphere, individuals— and often the entire group—will do things that interfere with the group’s success rather than contribute to it. You probably can think of groups that do not work well together. How do the members treat each other? How do they spend their time when the group is together? Usually it is not enjoyable to be part of a group with poor human relations. A leader not only demonstrates effective human relations skills but also helps others to develop these skills.
   
5. A manager can contribute to effective or ineffective human relations. Because managers have a responsibility for getting work done through others, relationships are important. Not every manager is currently an effective leader, but leadership skills can be developed. Because leadership is so important in business, most management training programs today emphasize leadership and effective human relations.
   

2. LEADERSHIP CHARACTERISTICS

1. Although managers have many responsibilities, one of the most important is creating an atmosphere that encourages employees to do their best work to make the business successful. Individual employees, however, have their own goals and needs. Employees will be most productive when the work meets their needs as well as those of the company. Managers should recognize and help to meet important needs of each employee while also accomplishing the goals of the business. Success in this task requires leadership.
   
2. Because leadership is directly related to the success of an organization, it is important that managers develop leadership characteristics. Leaders help employees get work done correctly and willingly. A poor manager may be able to get employees to perform the necessary tasks, but the work may be done poorly and inefficiently. A good manager, on the other hand, creates a work environment in which employees enjoy their work and want to do a good job.
   
3. Researchers have studied leaders in order to identify the characteristics that make them successful. Having those characteristics does not ensure that a person will be a good manager. Leaders must also understand the work to be done, and the business must be well organized with the resources needed to accomplish the work. In addition, managers must be able to plan, organize, staff, lead, and control the work and employees for which they are responsible. 
   

   
   

   
   

4. Leadership characteristics are personal qualities rather than specific ways that managers behave. Each company, each job, and each situation is different. Leadership characteristics prepare managers to be responsible yet flexible and able to adjust to changes. Two managers who possess the same leadership qualities will probably respond in different ways to specific situations but will be able to work well with people to get the necessary work accomplished.
   

1. Managers can influence employees because of their power. Power is the ability to control behavior. There are several ways that managers obtain power. The type of power will determine how employees respond to managers. Four types of power are available to managers and the source of each type. 
   

   
   

2. Position power comes from the position the manager holds in the organization. If a manager is an employee’s boss, the manager has the power to give directions and expect the employee to complete that work. If the manager does not directly supervise the employee, the manager’s directions are more requests than orders. The manager does not have the position power to tell that employee what to do.
   

3. Reward power is power based on the ability to control rewards and punishments. If a manager can determine who receives new equipment, preferred work schedules, or pay increases, or can penalize people for poor work or inappropriate performance, employees are likely to respond to that manager’s requests.
   

4. Expert power is power given to people because of their superior knowledge about the work. When workers are unsure of how to perform a task or need information to solve a problem, they may turn to an expert. Experts are able to influence behavior because of the knowledge and skill they have.
   

5. Identity power is power given to people because others identify with and want to be accepted by them. If an employee respects a manager and wants recognition and support from that person, the employee will likely do what the manager requests. Experienced or well-liked employees often have identity power. Those people can influence the work of others in the organization even though they are not managers.
   

4. USING POWER EFFECTIVELY

1. An analysis of the types of power shows that managers can influence employees because of their position or because of the rewards and punishments they control. However, those types of power are not related to leadership characteristics. Employees do not grant those types of power to managers. Position and reward power come from the manager’s position in the company. If a manager has only position and reward power, employees may do the requested work but may not do it willingly or well.
   
2. However, expert and identity power come from employees, not position in the company. Employees grant these kinds of power to managers they believe deserve it. If employees consider the manager to be an expert, they will seek the manager’s advice and help. If employees want the approval or positive recognition of the manager, they will work cooperatively and support the requests of the manager. Both expert and identity power are related to effective leadership characteristics.
   
3. Sometimes people other than managers have power in an organization. Other employees can influence people’s behavior because they can control rewards and punishments, they are considered experts, or other employees identify with them and want their approval. If those powerful employees support the work of the organization, they can have a positive influence on other employees.