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MOS Chapter 5 Notes
Leadership: the ability to inspire confidence and support among people who are needed to
achieve organizational goals
Other definitions of leadership (pg. 141)
For improved business results to come about, it will be because managers below the “C suit”
take the initiative and risks to drive the company in a different direction
The higher the level of an organization, the harder the ability to lead others effectively
Partnership: the leader and the group members are connected in such a way that the power
between them is approximately balanced
Four things are necessary for a valid partnership:
o Exchange of purpose, a right to say no, joint accountability, absolute honesty
Block’s conception of leadership as a partnership is an ideal to strive toward
o Empowerment and team building
Functions of management
o Planning, organizing, directing, controlling
Leadership deals with the interpersonal aspects of a manager’s job
Key distinctions between management and leadership (pg. 144)
Effective leaders have to be good managers themselves, or be supported by effective managers
Transactional and charismatic leadership styles were measured with a leadership questionnaire
o Organizational performance was measured as net profit margin (NPM) computed as net
income divided by net sales
o Results disclosed that:
Transactional leadership was not significantly related to performance
Charismatic leadership showed a slight positive relationship with performance
When the environment is uncertain, charismatic leadership is more strongly
related to performance
Attribution theory: the theory of how we explain the causes of events
The anti-leadership argument holds that leadership has a smaller impact on organizational
outcomes than do forces in the situation
Three major arguments against the importance of leadership are substitutes for leadership,
leadership irrelevance, and complexity theory
Substitutes for leadership: factors in the work environment that provide guidance and
incentives to perform
o Closely knit teams of highly trained individuals
require almost no leadership to accomplish their task
o Intrinsic satisfaction
Find strongly self-motivating, or intrinsically satisfying, require a minimum of
o Computer technology
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