{"id":3031,"date":"2023-02-19T16:11:20","date_gmt":"2023-02-19T16:11:20","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/introduction-to-leading\/"},"modified":"2025-05-22T17:33:13","modified_gmt":"2025-05-22T17:33:13","slug":"introduction-to-leading","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/introduction-to-leading\/","title":{"raw":"Learn It 9.4.1: Leading","rendered":"Learn It 9.4.1: Leading"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize different types of power that leaders use&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize different types of power that leaders use<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize different management styles&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize different management styles<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize different leadership styles&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize different leadership styles<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Leadership<\/h2>\r\n<p id=\"fs-idm205426240\"><strong>Leadership<\/strong>, the third key management function, is the process of guiding and motivating others toward the achievement of organizational goals. A leader can be anyone in an organization, regardless of position, able to influence others to act or follow, often by their own choice. Managers are designated leaders according to the organizational structure but may need to use negative consequences or coercion to achieve change.<\/p>\r\n<p>In the organization structure, top managers use leadership skills to set, share, and gain support for the company\u2019s direction and strategy. Middle and supervisory management use leadership skills in the process of directing employees on a daily basis as the employees carry out the plans and work within the structure created by management. Organizations, however, need strong effective leadership at all levels in order to meet goals and remain competitive.<\/p>\r\n<p id=\"fs-idm213756544\">To be effective leaders, managers must be able to influence others\u2019 behaviors. This ability to influence others to behave in a particular way is called\u00a0<strong><span id=\"term-00006\" data-type=\"term\">power<\/span><\/strong>. Researchers have identified five primary sources, or bases, of power:<\/p>\r\n<ul id=\"fs-idm218243536\">\r\n\t<li><strong><span id=\"term-00007\" data-type=\"term\">Legitimate power<\/span><\/strong> comes from an individual\u2019s position in an organization<\/li>\r\n\t<li><span id=\"term-00008\" data-type=\"term\"><strong>Reward power<\/strong> comes<\/span>\u00a0from an individual\u2019s control over rewards<\/li>\r\n\t<li><span id=\"term-00009\" data-type=\"term\"><strong>Coercive power<\/strong> comes<\/span>\u00a0from an individual\u2019s ability to threaten negative outcomes<\/li>\r\n\t<li><span id=\"term-00010\" data-type=\"term\"><strong>Expert power<\/strong> comes<\/span>\u00a0from an individual\u2019s extensive knowledge in one or more areas<\/li>\r\n\t<li><span id=\"term-00011\" data-type=\"term\"><strong>Referent power<\/strong> comes<\/span>\u00a0from an individual\u2019s personal charisma and the respect and\/or admiration the individual inspires<\/li>\r\n<\/ul>\r\n<p>Many leaders use a combination of all of these sources of power to influence individuals toward goal achievement.<\/p>\r\n<section class=\"textbox seeExample\">\r\n<h3>Lisa Su, CEO of AMD[footnote]Perrigo, Billy. 2024. \u201c2024 CEO of the Year: Lisa Su.\u201d Time Magazine. December 10, 2024. https:\/\/time.com\/7200909\/ceo-of-the-year-2024-lisa-su\/[\/footnote]<\/h3>\r\n\r\n[caption id=\"attachment_9536\" align=\"alignright\" width=\"168\"]<img class=\" wp-image-9536\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped-200x300.jpg\" alt=\"Lisa Su at the South by Southwest Conference, Austin, Texas, March 11, 2024\" width=\"168\" height=\"252\" \/> Figure 1. Since being appointed CEO of AMD, the company's stock has increased many times over.[\/caption]\r\n\r\n<p class=\"\" data-start=\"232\" data-end=\"816\">Advanced Micro Devices (AMD), is a global company that designs and builds the computer chips used in laptops, gaming consoles like the PlayStation and Xbox, and the powerful servers that make cloud computing and artificial intelligence possible. The company\u2019s graphics processing units (GPUs) and data center chips play a key role in running artificial intelligence systems, which need fast and powerful processors to manage large amounts of data. AMD is a major competitor to technology companies Intel and NVIDIA.\u00a0<\/p>\r\n<p class=\"\" data-start=\"818\" data-end=\"1426\">When Lisa Su became CEO of AMD in 2014, the company was struggling to keep up with its competitors. Thanks to her leadership, AMD made a strong comeback. Su has a Ph.D. in electrical engineering from MIT and built her career in semiconductor research and development. This makes her a great example of <strong data-start=\"1120\" data-end=\"1136\">expert power<\/strong>, which comes from deep knowledge and skill in a specific area. Her clear communication and thoughtful decision making earned her the respect of employees and industry leaders, giving her <strong data-start=\"1331\" data-end=\"1349\">referent power<\/strong>. And, of course, her position as CEO gives her <strong data-start=\"1397\" data-end=\"1417\">legitimate power<\/strong> as well.<\/p>\r\n<p class=\"\" data-start=\"1428\" data-end=\"1692\">Under Lisa Su\u2019s leadership, AMD's value rose dramatically. The company\u2019s stock price increased more than 20 times in her first eight years as CEO. Her smart decisions helped transform AMD into one of the most respected and innovative companies in technology today.<\/p>\r\n<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"300\"]6422[\/ohm2_question]<\/section>\r\n<p>&nbsp;<\/p>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize different types of power that leaders use&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize different types of power that leaders use<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize different management styles&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize different management styles<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize different leadership styles&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize different leadership styles<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>Leadership<\/h2>\n<p id=\"fs-idm205426240\"><strong>Leadership<\/strong>, the third key management function, is the process of guiding and motivating others toward the achievement of organizational goals. A leader can be anyone in an organization, regardless of position, able to influence others to act or follow, often by their own choice. Managers are designated leaders according to the organizational structure but may need to use negative consequences or coercion to achieve change.<\/p>\n<p>In the organization structure, top managers use leadership skills to set, share, and gain support for the company\u2019s direction and strategy. Middle and supervisory management use leadership skills in the process of directing employees on a daily basis as the employees carry out the plans and work within the structure created by management. Organizations, however, need strong effective leadership at all levels in order to meet goals and remain competitive.<\/p>\n<p id=\"fs-idm213756544\">To be effective leaders, managers must be able to influence others\u2019 behaviors. This ability to influence others to behave in a particular way is called\u00a0<strong><span id=\"term-00006\" data-type=\"term\">power<\/span><\/strong>. Researchers have identified five primary sources, or bases, of power:<\/p>\n<ul id=\"fs-idm218243536\">\n<li><strong><span id=\"term-00007\" data-type=\"term\">Legitimate power<\/span><\/strong> comes from an individual\u2019s position in an organization<\/li>\n<li><span id=\"term-00008\" data-type=\"term\"><strong>Reward power<\/strong> comes<\/span>\u00a0from an individual\u2019s control over rewards<\/li>\n<li><span id=\"term-00009\" data-type=\"term\"><strong>Coercive power<\/strong> comes<\/span>\u00a0from an individual\u2019s ability to threaten negative outcomes<\/li>\n<li><span id=\"term-00010\" data-type=\"term\"><strong>Expert power<\/strong> comes<\/span>\u00a0from an individual\u2019s extensive knowledge in one or more areas<\/li>\n<li><span id=\"term-00011\" data-type=\"term\"><strong>Referent power<\/strong> comes<\/span>\u00a0from an individual\u2019s personal charisma and the respect and\/or admiration the individual inspires<\/li>\n<\/ul>\n<p>Many leaders use a combination of all of these sources of power to influence individuals toward goal achievement.<\/p>\n<section class=\"textbox seeExample\">\n<h3>Lisa Su, CEO of AMD<a class=\"footnote\" title=\"Perrigo, Billy. 2024. \u201c2024 CEO of the Year: Lisa Su.\u201d Time Magazine. December 10, 2024. https:\/\/time.com\/7200909\/ceo-of-the-year-2024-lisa-su\/\" id=\"return-footnote-3031-1\" href=\"#footnote-3031-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/h3>\n<figure id=\"attachment_9536\" aria-describedby=\"caption-attachment-9536\" style=\"width: 168px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9536\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped-200x300.jpg\" alt=\"Lisa Su at the South by Southwest Conference, Austin, Texas, March 11, 2024\" width=\"168\" height=\"252\" srcset=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped-200x300.jpg 200w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped-65x98.jpg 65w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped-225x338.jpg 225w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped-350x525.jpg 350w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/22173040\/500px-SXSW-2024-alih-OB7A0861-Lisa_Su_cropped.jpg 500w\" sizes=\"(max-width: 168px) 100vw, 168px\" \/><figcaption id=\"caption-attachment-9536\" class=\"wp-caption-text\">Figure 1. Since being appointed CEO of AMD, the company&#8217;s stock has increased many times over.<\/figcaption><\/figure>\n<p class=\"\" data-start=\"232\" data-end=\"816\">Advanced Micro Devices (AMD), is a global company that designs and builds the computer chips used in laptops, gaming consoles like the PlayStation and Xbox, and the powerful servers that make cloud computing and artificial intelligence possible. The company\u2019s graphics processing units (GPUs) and data center chips play a key role in running artificial intelligence systems, which need fast and powerful processors to manage large amounts of data. AMD is a major competitor to technology companies Intel and NVIDIA.\u00a0<\/p>\n<p class=\"\" data-start=\"818\" data-end=\"1426\">When Lisa Su became CEO of AMD in 2014, the company was struggling to keep up with its competitors. Thanks to her leadership, AMD made a strong comeback. Su has a Ph.D. in electrical engineering from MIT and built her career in semiconductor research and development. This makes her a great example of <strong data-start=\"1120\" data-end=\"1136\">expert power<\/strong>, which comes from deep knowledge and skill in a specific area. Her clear communication and thoughtful decision making earned her the respect of employees and industry leaders, giving her <strong data-start=\"1331\" data-end=\"1349\">referent power<\/strong>. And, of course, her position as CEO gives her <strong data-start=\"1397\" data-end=\"1417\">legitimate power<\/strong> as well.<\/p>\n<p class=\"\" data-start=\"1428\" data-end=\"1692\">Under Lisa Su\u2019s leadership, AMD&#8217;s value rose dramatically. The company\u2019s stock price increased more than 20 times in her first eight years as CEO. Her smart decisions helped transform AMD into one of the most respected and innovative companies in technology today.<\/p>\n<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm6422\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=6422&theme=lumen&iframe_resize_id=ohm6422&source=tnh&show_question_numbers\" width=\"100%\" height=\"300\"><\/iframe><\/section>\n<p>&nbsp;<\/p>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-3031-1\">Perrigo, Billy. 2024. \u201c2024 CEO of the Year: Lisa Su.\u201d Time Magazine. December 10, 2024. https:\/\/time.com\/7200909\/ceo-of-the-year-2024-lisa-su\/ <a href=\"#return-footnote-3031-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21,"menu_order":21,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Leading\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"6.4 Leading, Guiding, and Motivating Others\",\"author\":\"Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. 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