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Chapter 13

Chapter 13 notes

Global Management Studies
Course Code
GMS 200
Shavin Malhotra

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Chapter 13: Leading
The Nature of Leadership
Leadership: is the process of inspiring others to work hard to accomplish important
The Leadership and Vision
Vision: is a clear sense of the future
Visionary leadership: brings to the situation an clear sense of the future and an
understanding of how to get there
Good leaders turn vision into accomplishments
Five Principles for meeting the challenges of visionary leadership:
oChallenge the process
oShow enthusiasm
oHelp others to act
oSet the example
oCelebrate achievements
Visionary leadership means having a clear vision, communicating that vision to all
concerned, and getting people motivated and inspired to pursue the vision in their
daily work.
Power and Influence
Power: is the ability to get someone else to do something you want done or to make
things happen the way you want
Power is essential to executive success
Sources of Position Power
Reward power: is the capacity to offer something of value as a means of
influencing other people
oPay raises, bonuses, promotions, etc.

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Coercive power: is the capacity to punish or withhold positive outcomes as a
means of influencing other people
Legitimatize power: is the capacity to influence other people by virtue of formal
authority, or the rights of office
Sources of Personal Power
Expert power: is the capacity to influence other people because of specialized
oMaintained by protecting ones credibility and not overstepping the
boundaries of true expertise
Referent power: is the capacity to influence other people because of their desire to
identify personally with you
oDerived from charisma or interpersonal attractiveness
oDeveloped and maintained through good interpersonal relations that
encourage the admiration and the respect for others
Turning Power into Influence
When one relies on rewards and legitimacy to influence others, the likely outcome is
temporary compliance
When one relies on coercion, compliance is also temporary and dependent on the
continued threat of punishment
Expert and referent power have the most enduring results, creates commitment
rather than compliance
Four points to keep in mind when building your managerial power:
oThere is no substitute for expertise
oLikable personal qualities are very important
oEffort and hard work breed respect
oPersonal behaviour must match expressed values
Centrality: Managers gain power by establishing networks of interpersonal contacts
and getting involved in the information flows within them

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Criticality: Managers must take good care of others who are dependent on them
Visibility: become known as an influential person in the organization
Ethics and the Limits to Power
Acceptance Theory of Authority: Four conditions that determine whether a
leaders directives will be followed and true influence achieved; the other person
oTruly understand the directive
oFeel capable of carrying out the directive
oBelieve that the directive is in the organizations best interests
oBelieve that the directive is conscientious with personal values
Leadership and Empowerment
Empowerment: enables others to gain and use decision making power
Effective leaders empower others by providing them with the information,
responsibility, authority, and trust to make decisions and act independently
Leadership Traits and Behaviours
Search for Leadership Traits
Great person Theory: research involved the search for universal traits for
distinguishing personal characteristics
Physical characteristics make no difference in determining leadership success
Personal traits among successful leaders
oCognitive ability
oBusiness knowledge
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