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Leading, Guiding, and Motivating Others > Learning Outcome 4 Leading is the process of guiding and motivating others toward the achievement of organizational goals. This ability to influence others to behave in a way is called power. Researchers have identified five primary sources, or bases, of...

Leading, Guiding, and Motivating Others > Learning Outcome 4 Leading is the process of guiding and motivating others toward the achievement of organizational goals. This ability to influence others to behave in a way is called power. Researchers have identified five primary sources, or bases, of power: Legitimate power, which is derived from an individual’s position in a firm Reward power, which is derived from an individual’s control over rewards Coercive power, which is derived from an individual’s ability to threaten negative outcomes Expert power, which is derived from an individual’s extensive knowledge in one or more areas Referent power, which is derived from an individual’s personal charisma and the respect and/or admiration the individual inspires Are leaders born or made? Many psychologists and organizational researchers argue that leaders are both made and born. However, researchers estimate that approximately two-thirds of leadership is a skill that can be developed and only one-third something we possess at birth. So, if you see leadership in your future, seek out leadership development opportunities! Leadership Styles Leadership style is the relatively consistent way that individuals in leadership positions attempt to influence the behavior of others. Autocratic leaders are directive leaders, allowing for very little input from subordinates. There are three types of participative leadership: democratic, consensual, and consultative. Democratic leaders solicit input from all members of the group and then allow the group members to make the final decision through a voting process; consensual leaders encourage discussion about issues and then require that all parties involved agree to the final decision; consultative leaders confer with subordinates before making a decision but retain the final decision-making authority. The third leadership style, at the opposite end of the continuum from the autocratic style, is free-rein leadership, in which managers turn over all authority and control to the subordinates. What is the best leadership style to use? No style works best for all situations. Great leaders vary their leadership style based on what the situation demands. Some situations may call for urgent action, and in these cases an autocratic style of leadership may be best. The democratic style is best suitable where team working is essential, and quality is more important than speed to market or productivity. Free-rein (or laissez-faire) can be effective if the leader monitors what is being achieved and communicates this back to his or her team regularly. Most often, free-rein leadership works for teams in which the individuals are very experienced and skilled self-starters. Employee Empowerment Empowerment means giving employees increased autonomy and discretion to make their own decisions, as well as control over the resources needed to implement those decisions. If you shop at Costco, you may have had the situation where you needed to return an item. Customers with returns don’t need a receipt, and there is no time limit when an item can be returned. Employees are empowered to take purchases back and make exchanges, ensuring customers’ issues get resolved without the need to consult a supervisor. Here are other examples of companies that empower their employees: American Airlines, Zappos, Ritz Carlton, Virgin America, Disney, Trader Joe’s, Pret a Manger, Airbnb, and Chick-Fil-A. C. Corporate Culture The set of attitudes, values, and standards of behavior that distinguishes one organization from another is called corporate culture. Shorts or Suits? Would you rather work 10-hour days in shorts or 8-hour days in suits? The architecture and decor of the building, what people wear on the job, the overall environment of the company; all of these and more are part of the corporate culture. Many companies even develop their own language. As you explore career options, take time to consider the corporate culture and decide whether it is a good fit for you.