The Importance of Leadership Anyone who holds a responsible position in an organization must have a number of h qualities to meet his or her responsibilities successfully. One of the key qualities for a L0 3'1'1 I manager at any level is effective leadership. If you plan a career in business, you need to develop your leadership skills. Many years ago, managers were totally responsible for all decisions in a business. Today, many businesses seek input from employees and want them to be involved in problem solving and decision making. Managers need to be leaders of their employees as well as managers of the business. Employees who are interested in moving into management positions in the future can look for opportunities to take on leadership roles as a way to develop important skills needed by managers. Leadership in Business Managing a business, whether large or small, is certainly not simple. Managers are responsible for getting the work of an organization accomplished through its employees. To be most productive, employees must understand why their work is important and be motivated to do the work. Generally, employees want to contribute to the success of the business. They appreciate managers who value their ideas as well as their work. Employees respond well to managers who are also effective leaders. A leader: earns the respect and cooperation of employees to effectively accomplish the work of the organization. __ hip is the ability to in?uence individuals and groups to cooperatively achieve common goals. Leaders have excellent human relations skills. . . refers to how well people get along with each other when working together. A group of people who respect each other and work well together will likely do better work than groups characterized by negative feelings, misunderstandings, hostility, and a lack of respect for each other. In a negative group atmosphere, individuals?and often the entire group? will do things that interfere with the group's success rather than contribute to it. You probably can think of groups that do not work well together. How do the members treat each other? How do they spend their time when the group is together? Usually it is not enjoyable to be part of a group with poor human relations. A leader not only demonstrates effective human relations skills but also helps others to develop these skills. Developing as a Leader A manager can contribute to effective or ineffective human relations. Because managers have a responsibility for getting work done through others, relationships are important. Not every manager is currently an effective leader, but leadership skills can be developed. Because leadership is so important in business, most management training programs today emphasize leadership and effective human relations. 

Leadership Characteristics Although managers have many responsibilities, one of the most important is creating an atmosphere that encourages employees to do their best work to make the business ' L0 3'1'2 I successful. Individual employees, however, have their own goals and needs. Employees will be most productive when the work meets their needs as well as those of the company. Managers should recognize and help to meet important needs of each employee while also accomplishing the goals of the business. Success in this task requires leadership. Because leadership is directly related to the success of an organization, it is important that managers develop leadership characteristics. Leaders help employees get work done correctly and willingly. A poor manager may be able to get employees to perform the necessary tasks, but the work may be done poorly and inef?ciently. A good manager, on the other hand, creates a work environment in which employees enjoy their work and want to do a good job. Researchers have studied leaders in order to identify the characteristics that make them successful. Common characteristics of effective leaders are described in lilg'lLEt-l. Having those characteristics does not ensure that a person will be a good manager. Leaders must also understand the work to be done, and the business must be well organized with the resources needed to accomplish the work. In addition, managers must be able to plan, organize, staff, lead, and control the work and employees for which they are responsible. Figure 3-1 Effective leaders possess many of the characteristics listed above. Common Leadership Traits INTELLIGENCE Leaders use their intelligence to study, learn, and improve their management skills. They also help the people they work with to develop new skiils. Leaders must use their intelligence effectively. JUDGMENT Leaders must make many decisions. They consider facts carefully, gather new information, and apply knowledge and experience. OBJECTIVI'I'Y Leaders must be abEe to look at all sides of a problem and not make biased judgments or statements. They gather information and do not rush into actions before considering the possible results. They value individual differences and try to avoid reacting no stereotypes or ?rst impressions. INITIATIVE Leaders have ambition and persistence in reaching goals. They are self-starters who plan what they want to do and then do rt. They have drive and are highly motivabed. They encourage others to be involved, take actions, and make decisions when appropriate. DEPENDABILJTY Those who lead are consistent in their actions, and others can rely on them. They do not make promises that cannot be ful?lled. When they make a commitment, they follow through and expect ?. 

When they make a commitment, they follow through and expect others to do the same. The people they work with can count on them for help when needed. COOPERATION Leaders understand the importance of other people and enjoy being with them. They strive to work well with others. They understand that people working together can accomplish more than the same people working alone. They devote time and effort to building cooperative relations. HONESTY Leaders are honest and have high standards of personal integrity. Leadership characteristics are personal qualities rather than specific ways that managers behave. Each company, each job, and each situation is different. Leadership characteristics prepare managers to be responsible yet flexible and able to adjust to changes. Two managers who possess the same leadership qualities will probably respond in different ways to specific situations but will be able to work well with people to get the necessary work accomplished. Think of someone you know in a leadership position. What makes that person effective? How could his or her leadership be improved? @Monkey Business Images/Shutterstock.com @Monkey Business Images/ Shutterstock.com Management Skills Leadership To be successful, a team needs both an effective leader and cooperative and supportive members. Many of the traits of effective leaders are needed by team members as well. Common leadership traits are most often learned through experience. For example, a school club will most likely have leaders who have earned the position. Develop Your Skills As a leader, explain how you can foster creativity in a team to solve a problem. 

Influencing People Managers influence people to accomplish the work of the organization. However, there LO 3.1.3 are both negative and positive ways to influence others. Just because managers can get others to do what they want does not mean that the managers are effective leaders. Management Power Managers can influence employees because of their power. Power is the ability to control behavior. There are several ways that managers obtain power. The type of power will determine how employees respond to managers. Four types of power available to managers and the source of each type are summarized in Figure 3-2. Figure 3-2 Managers use power to influence the behavior of employees. Types of Management Power TYPE OF POWER RESULTS FROM Position The manager's position in the organization Reward The manager's control of rewards/punishments Expert The manager's knowledge and skill Identity The employee's perception of the manager Position power comes from the position the manager holds in the organization. If a manager is an employee's boss, the manager has the power to give directions and expect the employee to complete that work. If the manager does not directly supervise the employee, the manager's directions are more requests than orders. The manager does not have the position power to tell that employee what to do. Reward power is power based on the ability to control rewards and punishments. If a manager can determine who receives new equipment, preferred work schedules, or pay increases, or can penalize people for poor work or inappropriate performance, employees are likely to respond to that manager's requests. Expert power is power given to people because of their superior knowledge about the work. When workers are unsure of how to perform a task or need information to solve a problem, they may turn to an expert. Experts are able to influence behavior because of the knowledge and skill they have. Identity power is power given to people because others identify with and want to be accepted by them. If an employee respects a manager and wants recognition and support from that person, the employee will likely do what the manager requests. Experienced or well-liked employees often have identity power. Those people can influence the work of others in the organization even though they are not managers. 

Ramadan Who are the greatest business leaders in U.S. history? The people who made the ?nal list had to have changed the American way of life in some signi?cant way. Harvard business professors Anthony J. Mayo and Nitin Nohria surveyed 7,000 executives to answer that question. Search for this list online using the keywords "Z?th Century American Leaders Database." Select a business leader from this list. Use the internet to learn more about that person and prepare a one-page summary about his or her unique contributions. Based on your research, would you agree the person is one of the greatest business leaders in U.S. history? Using Power Effectively An analysis of the types of power shows that managers can in?uence employees because of their position or because of the rewards and punishments they control. However, those types of power are not related to leadership characteristics. Employees do not grant those types of power to managers. Position and reward power come from the manager's position in the company. Ifa manager has only position and reward power, employees may do the requested work but may not do it willingly or well. However, expert and identity power come from employees, not position in the company. Employees grant these kinds of power to managers they believe deserve it. If employees consider the manager to be an expen, they will seek the manager's advice and help. If employees want the approval or positive recognition of the manager, they will work cooperatively and support the requests of the manager. Both expert and identity power are related to e?'ective leadership characteristics. Sometimes people other than managers have power in an organization. Other employees can in?uence people's behavior because they can control rewards and punishments, they are considered experts, or other employees identify with them and want their approval. If those powerful employees support the work of the organization, they can have a positive influence on other employees. 0n the other hand, employees with power can be disruptive if their needs and goals differ from those of the organization. Employees may choose to be in?uenced by those people rather than by their managers. Employees are willing to work hard when they are satis?ed with their jobs. Do employees as well as managers have a responsibility for increasing job satisfaction? )tmcumt'ntarun 

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Based on the provided text the following main ideas can be identified 1 Importance of Leadership in Business Discuss the key qualities and skills requ... View the full answer