WHAT IS LEADERSHIP?
A business uses many resources to accomplish its work and make a profit. Those resources include buildings, equipment, money, materials, supplies, and people. The ability to manage resources, including people, is critical to the success of any business. Some managers are effective at managing other resources but not as good at managing people. Because employees are so important, managers who can effectively manage people are in high demand.
Need for LeadershipIdeas about the effective management of people have changed in recent years. In the past, it was acceptable for managers to decide what needed to be done and how it was to be done without consulting the people who would be asked to do the work. Employees were expected to do what they were told. Although workers might have done what was asked of them, they might not have been doing their best.
Most businesses cannot afford to have employees who are not doing their best. The cost of hiring, training, and paying
employees is usually one of the largest expenses for a business. Employees who do not feel their contributions are valued may not perform well. They might not produce the quantity or quality of work that is required. Other employees who do not feel appreciated might look for other jobs. Companies pay a high cost for these kinds of problems.
Today, managers are expected to do more than just give orders. They are expected to find ways to meet employee needs as well as business needs. Managers must be effective leaders.
Leadership is the ability to motivate individuals and groups to accomplish important goals. When a manager can get individual employees and groups to work well together to accomplish objectives, she or he is an effective leader.
Leadership CharacteristicsLeadership is much more than just being friendly with employees. It takes skill to get people with different characteristics, needs, and interests to work well together and do the work needed by the business.
The characteristics of effective leaders are listed and described in Figure 7-2.
You may have heard, “Leaders are born and not made.” Most leaders will say that they did not always have the characteristics needed for success. Rather, they worked hard over many years to develop them.
It is harder for some people to develop leadership skills. You may be shy and find it hard to assume leadership roles. You may prefer to let others make decisions while you work to make those decisions successful. You may believe other students seem to be natural leaders or already have mastered many of the leadership characteristics. They are the ones who seem to be willing to take control, take a risk, or make a hard decision. Others look to them for direction and ideas.
A business uses many resources to accomplish its work and make a profit. Those resources include buildings, equipment, money, materials, supplies, and people. The ability to manage resources, including people, is critical to the success of any business. Some managers are effective at managing other resources but not as good at managing people. Because employees are so important, managers who can effectively manage people are in high demand.
Need for LeadershipIdeas about the effective management of people have changed in recent years. In the past, it was acceptable for managers to decide what needed to be done and how it was to be done without consulting the people who would be asked to do the work. Employees were expected to do what they were told. Although workers might have done what was asked of them, they might not have been doing their best.
Most businesses cannot afford to have employees who are not doing their best. The cost of hiring, training, and paying
employees is usually one of the largest expenses for a business. Employees who do not feel their contributions are valued may not perform well. They might not produce the quantity or quality of work that is required. Other employees who do not feel appreciated might look for other jobs. Companies pay a high cost for these kinds of problems.
Today, managers are expected to do more than just give orders. They are expected to find ways to meet employee needs as well as business needs. Managers must be effective leaders.
Leadership is the ability to motivate individuals and groups to accomplish important goals. When a manager can get individual employees and groups to work well together to accomplish objectives, she or he is an effective leader.
Leadership CharacteristicsLeadership is much more than just being friendly with employees. It takes skill to get people with different characteristics, needs, and interests to work well together and do the work needed by the business.
The characteristics of effective leaders are listed and described in Figure 7-2.
You may have heard, “Leaders are born and not made.” Most leaders will say that they did not always have the characteristics needed for success. Rather, they worked hard over many years to develop them.
It is harder for some people to develop leadership skills. You may be shy and find it hard to assume leadership roles. You may prefer to let others make decisions while you work to make those decisions successful. You may believe other students seem to be natural leaders or already have mastered many of the leadership characteristics. They are the ones who seem to be willing to take control, take a risk, or make a hard decision. Others look to them for direction and ideas.
Preparing to Be a Leader
You do not have to be a manager to be a leader. You shouldn't wait until you become a manager to begin developing leadership skills. There are several ways you can develop them right now, including:
You do not have to be a manager to be a leader. You shouldn't wait until you become a manager to begin developing leadership skills. There are several ways you can develop them right now, including:
- Study leadership. Many books on the subject of leadership and leadership skills can help you understand what it takes to be a leader. You can also take courses to develop specific leadership skills.
- Participate in organizations and activities. Clubs, teams, and organizations need leaders and offer a variety of opportunities to develop leadership skills.
- Practice leadership at work. If you have a part-time job, you can develop leadership skills as you help customers, complete work assignments, take initiative to solve problems, and demonstrate dependability and honesty.
- Observe leaders. Every day you can observe people in leadership positions in your school and community. You also can see and read media reports about people in leadership positions in business and government. Some are effective, while others are not.Work with a mentor. An older brother or sister, a trusted adult, a teacher or coach, or your supervisor at work may be willing to help you learn about leadership skills and offer direction and feedback on your progress.
- Do a self-analysis and ask for feedback. Find opportunities to demonstrate leadership characteristics. Review the results to identify what you did well and what you can improve. Ask others for constructive feedback.
IMPORTANCE OF HUMAN RELATIONSManagers and leaders must be able to work well with other people. Most managers spend a majority of their time interacting with people. They work with employees, customers, people from other businesses, and other managers in their own organizations. The ability to get along with other people largely determines whether a manager is successful or not. Human relations is the way people get along with each other.
Human Relations SkillsEffective managers and leaders must be able to get along well with all of the people with whom they work. In addition, they must help their employees develop effective human relations skills. The important human relations skills needed by leaders and managers are (1) self-understanding, (2) understanding others, (3) communication, (4) team building, and (5) developing job satisfaction.
Self-Understanding To be able to meet the expectations of others, leaders must first understand their own strengths and weaknesses. A manager cannot always do exactly what employees would prefer or make decisions with which every employee agrees. In addition, a manager cannot be viewed as either unpredictable or unfair. To gain a better understanding of yourself, you can study how you get along with others. Try to recognize the ways you communicate and work with others individually and in groups. It is important to recognize how you make decisions. You must learn which decisions were effective and which were not so you can improve your decision-making ability over time.
Understanding Others Leaders recognize that people they work with often are more alike than different. Recognizing those similarities will help develop a stronger team. Differences can also improve a work team. If everyone thought and acted the same, there would seldom be new ideas or anyone to question a decision in order to improve it. An effective leader
gets to know each person's skills and abilities as well as strengths and weaknesses. The leader will not treat everyone alike, but will attempt to involve each person in the way that is most beneficial to the business and that employee.
Communication Communication is essential in business. Managers must have effective communication skills. Communication can be classified in several ways.
Team Building Businesses are organized into groups and teams. The combined skills of the people in an effective team are greater than that of individuals working alone. On the other hand, if there are problems in the team and members cannot get along, the team will not be effective. Managers need team-building skills to help people understand each other and their responsibilities. Managers should be able to identify any problems developing within the group and help resolve issues quickly.
Developing Job Satisfaction Most people are more satisfied than dissatisfied with their work because they have jobs that use their skills and interests. The jobs also provide needed income and benefits. Managers can influence how employees feel about their jobs on a daily basis. Sources of dissatisfaction include assignments employees do not like, difficult working conditions, ineffective communication, and lack of recognition. Daily difficulties can lead to long-term dissatisfaction. On the other hand, employees appreciate it when a manager pays attention to the needs and concerns of individual employees.
Human Relations SkillsEffective managers and leaders must be able to get along well with all of the people with whom they work. In addition, they must help their employees develop effective human relations skills. The important human relations skills needed by leaders and managers are (1) self-understanding, (2) understanding others, (3) communication, (4) team building, and (5) developing job satisfaction.
Self-Understanding To be able to meet the expectations of others, leaders must first understand their own strengths and weaknesses. A manager cannot always do exactly what employees would prefer or make decisions with which every employee agrees. In addition, a manager cannot be viewed as either unpredictable or unfair. To gain a better understanding of yourself, you can study how you get along with others. Try to recognize the ways you communicate and work with others individually and in groups. It is important to recognize how you make decisions. You must learn which decisions were effective and which were not so you can improve your decision-making ability over time.
Understanding Others Leaders recognize that people they work with often are more alike than different. Recognizing those similarities will help develop a stronger team. Differences can also improve a work team. If everyone thought and acted the same, there would seldom be new ideas or anyone to question a decision in order to improve it. An effective leader
gets to know each person's skills and abilities as well as strengths and weaknesses. The leader will not treat everyone alike, but will attempt to involve each person in the way that is most beneficial to the business and that employee.
Communication Communication is essential in business. Managers must have effective communication skills. Communication can be classified in several ways.
- Formal or informal Formal communications methods are the established and approved ways for information to move between managers, employees, customers and others in the business. Informal communications are commonly used but unofficial ways that information moves in an organization.
- Internal or external Internal communications occur between managers, employees, and work groups. External communications occur between people inside the organization and people outside the organization such as customers, suppliers, and other businesses.
- Vertical or horizontal Vertical communications move up or down in an organization between management and employees. Horizontal communications move across the organization at the same level—employee to employee or manager to manager.
- Oral or written Oral communications are spoken directly or using technology. Written communications include notes, letters, reports, and text or graphics sent via technology.
Team Building Businesses are organized into groups and teams. The combined skills of the people in an effective team are greater than that of individuals working alone. On the other hand, if there are problems in the team and members cannot get along, the team will not be effective. Managers need team-building skills to help people understand each other and their responsibilities. Managers should be able to identify any problems developing within the group and help resolve issues quickly.
Developing Job Satisfaction Most people are more satisfied than dissatisfied with their work because they have jobs that use their skills and interests. The jobs also provide needed income and benefits. Managers can influence how employees feel about their jobs on a daily basis. Sources of dissatisfaction include assignments employees do not like, difficult working conditions, ineffective communication, and lack of recognition. Daily difficulties can lead to long-term dissatisfaction. On the other hand, employees appreciate it when a manager pays attention to the needs and concerns of individual employees.
INFLUENCING PEOPLEHave you been a part of a group that often disagrees on how things should be done and takes a long time making decisions? It is interesting to see what the leader of a group does when the group is not working well. Some leaders will complain and criticize group members. Others will give up on the group and attempt to do the work themselves. Neither of those responses improves the group's effectiveness. Effective leaders must be able to influence team members and others in positive ways. Influence enables a person to affect the actions of others.
Kinds of InfluenceThere are several kinds of influence a leader may be able to use.
Position influence is the ability to get others to accomplish tasks because of the position the leader holds. If the leader is a manager with authority over an employee it is likely that the employee will feel obligated to respond to the leader's requests.
Reward influence results from the leader's ability to give or withhold rewards. Rewards may be monetary such as wages or job benefits. Rewards can also be non-monetary, such as recognition and praise. Rewards are usually positive but can be used in a negative way by requiring people to work overtime or by criticizing rather than praising employees.
Expert influence exists when group members recognize and appreciate a leader's expertise in a specific area. For example, a group of inexperienced sales representatives with a manager who has years of successful selling experience will likely look to the manager for guidance.
Identity influence stems from the personal trust and respect members have for the leader. If the leader is well liked and appears to have the best interests of the group in mind, members are likely to support the leader.
The influence of leaders is not always positive. It may not be effective for a long period. If a manager is not viewed as an expert and is not well liked, he or she will have to rely on position and reward influence. It is not easy to continue to get people to do things for you just because you are their manager. They will probably do just enough to get by, get a reward, or avoid punishment. Most leaders try to develop expert and identity influence to gain the respect and support of the group.
Formal and Informal InfluenceHow does a person influence a group to accomplish important goals? Groups can be affected by formal and informal influence. It may depend on the person's role within the organization. Managers have formal influence. Others can have informal influence as a result of their personal characteristics rather than their role in the organization.
What happens when your teacher assigns a group project and the team members get together for the first time? Usually one or two people emerge as leaders to help get the group focused and organized using informal influence. Informal influence is power resulting from the personal characteristics of a leader rather than the formal structure of an organization. Consider another situation where members of the student council meet for the first time. There are bylaws that call for the election of officers. The person elected president has formal influence. Formal influence is power based on a leader's position within the formal structure of an organization.
Often in organizations, both formal and informal influence will operate at the same time. One person will be the manager and have formal influence. There may be a well-liked and respected employee in the group who will have informal influence. If there is a conflict between the formal and informal influence, the group will probably not work effectively. Group members will have difficulty deciding whose influence to follow. Effective managers recognize informal influence and work closely with the informal leaders to gain their support and avoid conflicts.
Kinds of InfluenceThere are several kinds of influence a leader may be able to use.
Position influence is the ability to get others to accomplish tasks because of the position the leader holds. If the leader is a manager with authority over an employee it is likely that the employee will feel obligated to respond to the leader's requests.
Reward influence results from the leader's ability to give or withhold rewards. Rewards may be monetary such as wages or job benefits. Rewards can also be non-monetary, such as recognition and praise. Rewards are usually positive but can be used in a negative way by requiring people to work overtime or by criticizing rather than praising employees.
Expert influence exists when group members recognize and appreciate a leader's expertise in a specific area. For example, a group of inexperienced sales representatives with a manager who has years of successful selling experience will likely look to the manager for guidance.
Identity influence stems from the personal trust and respect members have for the leader. If the leader is well liked and appears to have the best interests of the group in mind, members are likely to support the leader.
The influence of leaders is not always positive. It may not be effective for a long period. If a manager is not viewed as an expert and is not well liked, he or she will have to rely on position and reward influence. It is not easy to continue to get people to do things for you just because you are their manager. They will probably do just enough to get by, get a reward, or avoid punishment. Most leaders try to develop expert and identity influence to gain the respect and support of the group.
Formal and Informal InfluenceHow does a person influence a group to accomplish important goals? Groups can be affected by formal and informal influence. It may depend on the person's role within the organization. Managers have formal influence. Others can have informal influence as a result of their personal characteristics rather than their role in the organization.
What happens when your teacher assigns a group project and the team members get together for the first time? Usually one or two people emerge as leaders to help get the group focused and organized using informal influence. Informal influence is power resulting from the personal characteristics of a leader rather than the formal structure of an organization. Consider another situation where members of the student council meet for the first time. There are bylaws that call for the election of officers. The person elected president has formal influence. Formal influence is power based on a leader's position within the formal structure of an organization.
Often in organizations, both formal and informal influence will operate at the same time. One person will be the manager and have formal influence. There may be a well-liked and respected employee in the group who will have informal influence. If there is a conflict between the formal and informal influence, the group will probably not work effectively. Group members will have difficulty deciding whose influence to follow. Effective managers recognize informal influence and work closely with the informal leaders to gain their support and avoid conflicts.