The main contents of the chapter consist of the following: Leadership, models of leadership, power, sources of power, the role of intuition, types of problems and decisions, decision-making conditions. | Management Practices Lecture-25 1 Recap The Role of Intuition Types of Problems and Decisions Decision-Making Conditions 2 Overview of Managerial Decision Making 3 3 Today’s Lecture Leadership Models of leadership Power Sources of Power 4 Leadership Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firm’s ability to meet new challenges. Leader: The person exerting the influence. Personal Leadership Style: the ways leaders choose to influence others. Some leaders delegate and support subordinates, others are very authoritarian. Managers at all levels have their own leadership style. 5 Leadership Across Cultures Leadership styles may vary over different cultures. European managers tend to be more people-oriented than American or Japanese managers. Japanese culture is very collective oriented, while American focuses more on profitability. Time horizons also are . | Management Practices Lecture-25 1 Recap The Role of Intuition Types of Problems and Decisions Decision-Making Conditions 2 Overview of Managerial Decision Making 3 3 Today’s Lecture Leadership Models of leadership Power Sources of Power 4 Leadership Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firm’s ability to meet new challenges. Leader: The person exerting the influence. Personal Leadership Style: the ways leaders choose to influence others. Some leaders delegate and support subordinates, others are very authoritarian. Managers at all levels have their own leadership style. 5 Leadership Across Cultures Leadership styles may vary over different cultures. European managers tend to be more people-oriented than American or Japanese managers. Japanese culture is very collective oriented, while American focuses more on profitability. Time horizons also are affected by cultures. . firms often focus on short-run efforts. Japanese firms take a longer-term outlook. 6 Sources of Power Reward Power Legitimate Power Coercive Power Expert Power Referent Power Enable managers to be leaders & influence subordinates to achieve goals 7 Sources of Power Used to affect other’s behavior and get them to act in given ways. Legitimate Power: manager’s authority resulting by their management position in the firm. Can be power to hire/fire workers, assign work. Reward Power: based on the manager’s ability to give or withhold rewards. Pay raises, bonuses, verbal praise. Effective managers use reward power to signal employees they are doing a good job. 8 Sources of Power Coercive Power: based in ability to punish others. Ranges from verbal reprimand to pay cuts to firing. Can have serious negative side effects. Expert Power: based on special skills of leader. First & middle managers have most expert power. Often found in technical ability. Referent Power: .
