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0 10-July-2020

Study Guide in Mgt 101: Management and Marketing in the 21st Century Module No. 4

STUDY GUIDE FOR MODULE NO. 4

LEADING
MODULE OVERVIEW

Hello, again #BSBAby! We are down to the last two modules for the first half! How about a quick recap? Yes?

Okay, so we have talked about management and its first two functions, planning and organizing. Just to recall
the definitions, Daft defines management as the attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading, and controlling organizational resources. Planning is the
function of management that involves setting objectives and determining a course of action for achieving
those objectives while organizing involves developing an organizational structure and allocating human
resources to ensure the accomplishment of objectives (UMN, n.d.). This module talks about the next
management function which is LEADING, also known as DIRECTING.

Ready? Let us start!

All contents are heavily drawn from our main reference book, Management (14th ed.) by Robbins & Coulter
(2018).

MODULE LEARNING OBJECTIVES

At the end of this module, you should be able to:

1. Define leader and leadership.

2. Differentiate a leader from a manager
3. Compare and contrast early theories of leadership.
4. Describe the three major contingency theories of leadership.
5. Describe contemporary views of leadership.
6. Recognize the twenty-first century issues affecting leadership.

WHO ARE LEADERS AND WHAT IS LEADERSHIP?

Daft (2018) defines leading as the management function that involves the use of influence to motivate
employees to achieve the organization’s goals. This goes beyond simply managing tasks; rather, it involves
communicating, motivating, inspiring, and encouraging employees towards a higher level of productivity
(OER2GO, n.d.).

Our definition of a leader is someone who can influence others and who has managerial authority.
Leadership is a process of leading a group and influencing that group to achieve its goals. It’s what leaders
do.

LEARNING ACTIVITY 1

Continue learning about the topic by watching the following videos. As usual, write short notes about it.

 Leadership: Leaders & Their Role in Organizations

http://oer2go.org/mods/en-oya/business-101/webpages/Chapter9/1-leadership-leaders-their-role-in-
organizations.html

 Management vs. Leadership: The Difference Between a Manager & Leader

http://oer2go.org/mods/en-oya/business-101/webpages/Chapter9/2-management-vs-leadership-the-
difference-between-a-manager-leader.html

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Study Guide in Mgt 101: Management and Marketing in the 21st Century Module No. 4

 Leading as a Function of Management

http://oer2go.org/mods/en-oya/business-101/webpages/Chapter9/3-leading-as-a-function-of-
management.html

Reflection Questions: (T4_RQ1)

a) If someone asked you to name three great leaders, who would you name? What makes him/her a
great leader? Make a bulleted list of the characteristics these individuals exhibit that you think
make them effective leaders.
b) Are all managers leaders? Defend your answer.
c) Differentiate a manager and a leader. Which is better?

EARLY LEADERSHIP THEORIES

What is an effective leader? We’ll begin our study of leadership by looking at some early leadership theories
that attempted to answer that question.

People have been interested in leadership since they started coming together in groups to accomplish goals.
However, it wasn’t until the early part of the twentieth century that researchers actually began to study
leadership. These early leadership theories focused on the leader (leadership trait theories) and how the
leader interacted with his or her group members (leadership behavior theories).

Leadership Traits

Leadership research in the 1920s and 1930s focused on isolating leader traits—that is, characteristics—that
would differentiate leaders from nonleaders. Some of the traits studied included physical stature, appearance,
social class, emotional stability, fluency of speech, and sociability.

Researchers at the Universities of Florida and North Carolina reported that taller men, compared to shorter
men, tended to possess higher levels of social esteem, become successful leaders, earn more money, and
have greater career success. Despite the best efforts of researchers, it proved impossible to identify a set of
traits that would always differentiate a leader (the person) from a nonleader.

Researchers wondered whether something unique in what effective leaders did—in other words, in their
behavior—was the key.

Leadership Behavior

Researchers hoped that the behavioral theories approach would provide more definitive answers about the
nature of leadership than did the trait theories. The four behavioral theories of leadership are from University
of Iowa, Ohio State, University of Michigan and the other is the Managerial Grid.

LEARNING ACTIVITY 2

 Continue reading the topic on the ebook, Management (14 th ed.) by Robbins & Coulter (2018) on pp.
556-559. As usual, write short notes about it on you physical or virtual notebook as you read.

Reflection Questions: (T4_RQ2)

a) Is a leader born or made? Support your answer with the theories mentioned above.
b) Which do you think is the best theory that can still be applied now? How?
c) Determine the leadership style of the individuals you listed in Learning Activity 1a. What makes you
think so?

CONTINGENCY THEORIES OF LEADERSHIP

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Study Guide in Mgt 101: Management and Marketing in the 21st Century Module No. 4

“The corporate world is filled with stories of leaders who failed to achieve greatness because they failed to
understand the context they were working in.” In this section, we examine three contingency theories—
Fiedler, Hersey-Blanchard, and path-goal. Each looks at defining leadership style and the situation and
attempts to answer the if-then contingencies (that is, if this is the context or situation, then this is the best
leadership style to use).
LEARNING ACTIVITY 2
 Fiedler’s model attempted to define the best style to use in particular situations. He measured leader
style—relationship oriented or task oriented—using the least preferred coworker questionnaire.
Fiedler also assumed a leader’s style was fixed. He measured three contingency dimensions: leader–
member relations, task structure, and position power. The model suggests that task-oriented leaders
performed best in very favorable and very unfavorable situations, and relationship-oriented leaders
performed best in moderately favorable situations.

 Hersey and Blanchard’s situational leadership theory focused on followers’ readiness. They
identified four leadership styles: telling (high task–low relationship), selling (high task–high
relationship), participating (low task–high relationship), and delegating (low task–low relationship).
They also identified four stages of readiness: unable and unwilling (use telling style), unable but
willing (use selling style), able but unwilling (use participative style), and able and willing (use
delegating style).

 The path-goal model developed by Robert House identified four leadership behaviors: directive,
supportive, participative, and achievement oriented. He assumed that a leader can and should be
able to use any of these styles. The two situational contingency variables were found in the
environment and in the follower. Essentially, the path-goal model says that a leader should provide
direction and support as needed; that is, structure the path so the followers can achieve goals.

LEARNING ACTIVITY 3

 Continue reading the topic on the ebook, Management (14 th ed.) by Robbins & Coulter (2018) on pp.
559-564. As usual, write short notes about it on you physical or virtual notebook as you read.

CONTEMPORARY VIEWS OF LEADERSHIP

What are the latest views of leadership? We want to look at four of these views: leader–member exchange
theory, transformational-transactional leadership, charismatic-visionary leadership, and team leadership.

 Leader–member exchange theory (LMX) says that leaders create in-groups and outgroups and those
in the in-group will have higher performance ratings, less turnover, and greater job satisfaction.
 A transactional leader exchanges rewards for productivity where a transformational leader stimulates
and inspires followers to achieve goals.
 A charismatic leader is an enthusiastic and self-confident leader whose personality and actions
influence people to behave in certain ways. People can learn to be charismatic.
 A visionary leader is able to create and articulate a realistic, credible, and attractive vision of the
future.
 Authentic leadership focuses on the moral aspects of being a leader. Ethical leaders create a culture
in which employees feel that they could and should do a better job. A team leader has two priorities:
manage the team’s external boundary and facilitate the team process. Four leader roles are involved:
liaison with external constituencies, troubleshooter, conflict manager, and coach.

LEARNING ACTIVITY 4

 Continue reading the topic on the ebook, Management (14 th ed.) by Robbins & Coulter (2018) on pp.
564-568. As usual, write short notes about it on you physical or virtual notebook as you read.

LEADERSHIP ISSUES IN THE 21st CENTURY

Leading effectively in today’s environment is likely to involve such challenging circumstances for many
leaders. In addition, twenty-first-century leaders do face some important leadership issues. In this section, we

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Study Guide in Mgt 101: Management and Marketing in the 21st Century Module No. 4

look at these issues, which include managing power, developing trust, empowering employees, leading
across cultures, and becoming an effective leader.

Managing Power

Where do leaders get their power—that is, their right and capacity to influence work actions or decisions? Five
sources of leader power have been identified

 Legitimate power and authority are the same. Legitimate power represents the power a leader has
as a result of his or her position in the organization.
 Coercive power is the power a leader has to punish or control. Reward power is the power to give
positive rewards. A reward can be anything a person values, such as money, favorable performance
appraisals, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or
sales territories.
 Expert power is power based on expertise, special skills, or knowledge
 Referent power is the power that arises because of a person’s desirable resources or personal
traits..

Developing Trust

In today’s uncertain environment, an important consideration for leaders is building trust and credibility, both
of which can be extremely fragile. Credibility is the degree to which followers perceive someone as honest,
competent, and able to inspire. Trust is defined as the belief in the integrity, character, and ability of a leader.
Followers who trust a leader are willing to be vulnerable to the leader’s actions because they are confident
that their rights and interests will not be abused. Research has identified five dimensions that make up the
concept of trust..

Empowering Employees

Managers are increasingly leading by empowering their employees. As we’ve said before, empowerment
involves increasing the decision-making discretion of workers. Millions of individual employees and employee
teams are making the key operating decisions that directly affect their work. They’re developing budgets,
scheduling workloads, controlling inventories, solving quality problems, and engaging in similar activities that
until very recently were viewed exclusively as part of the manager’s job.

Leading Across Cultures

One general conclusion that surfaces from leadership research is that effective leaders do not use a single
style. They adjust their style to the situation. Although not mentioned explicitly, national culture is certainly an
important situational variable in determining which leadership style will be most effective. What works in the
United States, for instance, isn’t likely to be effective in the Philippines, and vice versa.

Becoming and Effective Leader

Organizations need effective leaders. Two issues pertinent to becoming an effective leader are leader training
and recognizing that sometimes being an effective leader means not leading. Let’s take a look at these
issues.

Leadership Training

Organizations around the globe spend billions of dollars, yen, and euros on leadership training and
development. However, let’s recognize the obvious. Some people don’t have what it takes to be a leader.
Period. For instance, evidence indicates that leadership training is more likely to be successful with individuals
who are high self-monitors rather than with low self monitors. Such individuals have the flexibility to change
their behavior as different situations may require. In addition, organizations may find that individuals with
higher levels of a trait called motivation to lead are more receptive to leadership development opportunities.

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Study Guide in Mgt 101: Management and Marketing in the 21st Century Module No. 4

Substitute for Leadership

Despite the belief that some leadership style will always be effective regardless of the situation, leadership
may not always be important! Research indicates that, in some situations, any behaviors a leader exhibits are
irrelevant. In other words, certain individual, job, and organizational variables can act as “substitutes for
leadership,” negating the influence of the leader.

LEARNING ACTIVITY 5

 Continue reading the topic on the ebook, Management (14 th ed.) by Robbins & Coulter (2018) on pp.
569-576. As usual, write short notes about it on you physical or virtual notebook as you read.

Reflection Questions: (T4_RQ1)

 Out of the five dimensions of trust, what seems to be the most critical when someone assesses
another’s trustworthiness?
 Can a leader get power from multiple sources? Discuss.
 In the topic Leadership across Cultures, some of the findings about leaders of different countries are
mentioned. What do you think are the dominant characteristics of Filipino leaders? You should base
your discussion from researches and you can input your own observations. Share your findings with
your classmates.

Quiz #5
 Review all the lessons in this module and prepare short quiz. I will be sending the link of the quiz. You
can only answer once and make sure you answer them when you’re ready. Answer the questions as
honest as possible. You know the drill: Do not ask your classmates for the questions and learn on
your own 

Case Study 2 (Code: T4_CS)

 This is a collaborative activity (group).

 Answer the discussion questions in not less than 100 words but not more than 120 words (per
question)
o Case Application 1 on Robbins and Coulter (2018) pp 580-581 for Groups 1-4.
o Case Application 2 on Robbins and Coulter (2018) p 581-582 for Groups 4-8.

SUMMARY

 A leader is someone who can influence others and who has managerial authority. Leadership is a
process of leading a group and influencing that group to achieve its goals. Managers should be
leaders because leading is one of the four management functions.
 Early leadership theories focused on the leader, focusing on traits and how the leader interacted with
his or her group members which focused on behavior.
 The contingency theories of leadership includes three: Fiedler, Hersey-Blanchard, and path-goal.
Each looks at defining leadership style and the situation and attempts to answer the if-then
contingencies (that is, if this is the context or situation, then this is the best leadership style to use).
 In terms of the contemporary views of leadership, four views have been discussed: leader–member
exchange theory, transformational-transactional leadership, charismatic-visionary leadership, and
team leadership.
 The five sources of a leader’s power are legitimate (authority or position), coercive (punish or control),
reward (give positive rewards), expert (special expertise, skills, or knowledge), and referent (desirable
resources or traits).

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Study Guide in Mgt 101: Management and Marketing in the 21st Century Module No. 4

 Today’s leaders face the issues of managing power, developing trust, empowering employees,
leading across cultures, and becoming an effective leader.

REFERENCES

 Robbins, S. & Coulter, M. (2018). Management. (14th ed.). Pearson Education Limited
 Daft, R. (2018). Management. (13th ed.) Cengage
 https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organizing-leading-and-
controlling-2/
 http://oer2go.org/mods/en-oya/business-101/Quiz/Chapter1/4-Four-Functions-of-Management-
Planning-Organizing-Leading-and-Controlling-QUIZ.html#:~:text=The%20third%20function%20of
%20management%20is%20leading.&text=This%20goes%20beyond%20simply%20managing,a
%20higher%20level%20of%20productivity.
 http://oer2go.org/mods/en-oya/business-101/webpages/Chapter9/1-leadership-leaders-their-role-in-
organizations.html
 http://oer2go.org/mods/en-oya/business-101/webpages/Chapter9/2-management-vs-leadership-the-
difference-between-a-manager-leader.html
 http://oer2go.org/mods/en-oya/business-101/webpages/Chapter9/3-leading-as-a-function-of-
management.html

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