Topic outline

  • Course Introduction

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    All managers are leaders. All leaders are managers. Which of these statements is true? Both. The words are often confused because people often think that both leaders and managers are in charge of a specific task or group of people. While there are many differences between the two on a task-by-task basis, generally, what they do is largely the same. For example, both may handle data, including its acquisition, analysis, and dissemination. Or consider that they both may have no formal power yet take a lot of responsibility for getting things done. Many of history's greatest leaders only had power earned from their peers instead of power granted by another individual or group. Think of America's founding fathers, like Thomas Jefferson, who went against the British government to draft the Declaration of Independence. The situation created the team, and the recognized leaders emerged. All of these similarities will be explored in this course.

  • Unit 1: Introduction

    Organizations have consistently found that business schools do an excellent job of providing students with the strong, functional foundations and sharp analytical skills needed to be effective decision-makers. At the same time, businesses complain that graduates have not fully developed the personal and interpersonal skills to progress within the corporate hierarchy. Many business observers have concluded that the potential extent of the human contribution to output should be far more developed than it has traditionally been.

    In today's business environment, effective use of human resources becomes a source of competitive advantage. So, exactly what is organizational leadership? What is the purpose of studying how to lead? How does one lead a team along with managing oneself? Aren't all leaders born and not made? If so, millions of people are wasting their time trying to improve and enhance their leadership skills. Fortunately, becoming a better leader is not a waste of time. While it is true that some leaders are born, most are made by reading and studying what makes one an effective leader.

    In this introductory unit, you will have the opportunity to explore the four pillars of excellent leaders: management, leadership, groups, and teams. Management and leadership are often used interchangeably; the same applies to groups and teams. However, management is about allocating resources; leadership is about empowering people. A group is a collection of individuals with similar interests; teams have an overarching goal and work together. An effective leader will help a group become a team.

    This unit concludes with a look at some great leaders in history. These five individuals are selected for their broad experiences and abilities to manage groups and teams. The spectrum goes from brilliant corporate management and inspiring political movements to excellence in military leadership and sports team management.

    Completing this unit should take you approximately 10 hours.

    • 1.1: Definitions

      The meaning of leadership and management are different and yet closely similar. Not only is the definition important, so are the traits and skills necessary for being an effective leader (or manager).

    • 1.2: Great Leaders

      Thousands of leaders have graced the pages of history, and there are many more who may have crossed your own path in life. Certainly, no two leaders are exactly alike. The five leaders discussed below are well known, but they are five very different people who lived in different times and circumstances. Each has approached his or her role as a leader based on his or her personality and developed a leadership style that suits their situation. Each has been effective in their own way. While well-known and often discussed in the business world, the examples below are not the only successful leaders; certainly, others will come to mind as you read the leadership bios below. As you learn about these famous leaders, consider which of Lewin's leadership styles each leader exemplifies.

    • Unit 1 Conclusion

      This unit focused on leadership and great leaders. Any leader or manager, should understand not only their own leadership style, but how other leaders lead their own teams. This will especially help new leaders to better develop their leadership skills. The next unit builds on this foundation to move into leadership theory and traits of great leaders. 

    • Unit 1 Study Resources

    • Unit 1 Assessment

  • Unit 2: Leadership Theory

    People have studied leadership since ancient times, and theories of leadership have been around for centuries (Plato, Sun Tzu, Machiavelli, etc.); however, it wasn't until the 20th century that modern theories began to take shape. Today, researchers study leadership the same way they study other aspects of psychology: they seek to better understand people's behavior and motivation. While early theories were contradictory, later theories became more complementary. Early theories seek to identify one set of rules or behaviors that turns someone into a leader. The reality is likely a combination of all the theories and some ideas that have yet to be defined. It is best to study these theories with an open mind and understand that each has merits. Remember that emphasis should not be placed on any one theory.

    Completing this unit should take you approximately 10 hours.

    • 2.1: Trait Theory

      The trait theory of management is the belief that leaders are born with certain characteristics (or traits) that make them successful. In other words, being a leader is innate or based on the qualities of one's personality. This theory assumes that a person born with certain traits will ultimately be a great leader.

    • 2.2: Behavioral Theory

      The behavioral theory of management is the belief that leaders display certain behaviors that make them successful. In this case, good leadership is based on a combination of task-oriented and people-oriented behaviors. This theory assumes that a person who understands the correct combination will ultimately be a great leader.

    • 2.3: Situational Leadership

      Situational leadership theory is the belief that good leaders can change their leadership style depending on the situation. Good leaders understand that every management situation is not the same and will assess the individual and contextual factors of the particular situation to determine the appropriate way to manage it successfully.

    • 2.4: Visionary Characteristics

      Visionary leaders succeed by creating a vivid picture of their organization's future and communicating clearly to their employees. Employees then buy into the vision, make it their own, and help the leader make it a reality.

    • 2.5: Transformational Leadership

      Transformational leaders help employees see beyond their own needs and focus on the greater good of the organization to achieve the organization's vision and mission. In this way, it includes visionary leadership and may include charismatic leadership.

    • Unit 2 Conclusion

      All leaders use behavioral traits to manage people, and these traits may be learned or instilled in managers as they develop. It is important to not only understand your own leadership traits, but also of those around you. This understanding will help you to be a better leader and develop a solid team. 

    • Unit 2 Study Resources

    • Unit 2 Assessment

  • Unit 3: Change Management and Decision-Making

    The most difficult task for a leader is implementing changes without disrupting the whole business. Changes to the normal business operation will have supporters and protestors. A leader needs to understand the points of view from both sides. Sometimes, the changes are minor, such as a new benefits plan. Other times major changes must be made, such as moving the operations across the country and laying off employees. The only certainty with change is that you cannot please everyone, but a good manager will anticipate reactions and focus on effective communication.

    Both major and minor changes are often the result of a decision-making process. There are many different ways to approach a decision, and each method has an appropriate time and place. Decisions can be based on dictatorial edicts, on a leader's decision based on consultation with subordinates, or on a more collective process where everyone can develop and agree on the final outcome. These methods will be presented in this unit. In addition, one must also address the real probability that decisions, regardless of the process by which they are derived, will be clouded by bias. In this unit, we present the most critical of those biases, including anchoring, groupthink, and selective perception.

    Completing this unit should take you approximately 13 hours.

    • 3.1: Change Management

      Making changes in an organization, no matter the size, is one of the most difficult things for leaders. Organizational change takes a long time to plan, implement, and make permanent. This process is hindered by people's natural resistance to change. In this section, you will read about some of the most popular approaches to organizational change and how they are used.

    • 3.2: Decision-Making

      It could be argued that all of a leader's job is making decisions. That is why it's important to understand how decisions are made, the psychology behind decision-making, and the various decision-making techniques that can be used depending on what the situation demands.

    • 3.3: Biases

      Biases are aspects of our subconscious determined by genetics, experience, and environment that influence how we consider the world and attribute reasons to how people behave. It's important to understand what biases are and how they work to understand how they can affect decision-making for better and worse.

    • Unit 3 Conclusion

      Change management is a regular occurence in business today. All businesses must adapt and change with the times, or they don't survive. Effective change management requires that many things occur within the business, and a good leader understands the change process and how to create effective change. Employees are the people who create change in organizations today, and their buy-in is required for the change process. Transformational leaders are great at creating change because they inspire employees to create change. In the next unit, we will discuss those leaders who have official and unofficial authority in the workplace, and the various types of power they have.

    • Unit 3 Study Resources

    • Unit 3 Assessment

  • Unit 4: Leading without Formal Authority

    While many students of this course will go on to lead teams, organizations, and companies, everyone will have opportunities to lead without being granted any actual authority (called "legitimate power"). To leverage these opportunities, you must know what types of power exist and when to use them. For example, having expert power allows someone to step up because they have the most knowledge about a specific subject. Leading without authority goes beyond power, the ability to influence without manipulation, emotional intelligence, and interpersonal skills are all important aspects of gaining power and leadership without having direct authority over a group or team. After studying these topics, you will be able to recognize when a leader takes over a situation and determine who may be the best leader for a given situation.

    Completing this unit should take you approximately 12 hours.

    • 4.1: Sources of Power

      As a leader, knowing where your and others' power comes from and how it is used will be important. These readings will allow you to reflect on the appropriate uses and situations to use power.

    • 4.2: Forms of Exerting Leadership

      There are various ways of exerting leadership besides wielding power. These include influence, mediation, managing conflict, and good communication.

    • 4.3: Influence

      People use influence they have over others to make a difference in their community, and this type of power may not be noticeable, but motivating others to make a change is power. 

    • 4.4: Emotional Intelligence

      Aside from intellectual intelligence, leaders must have emotional intelligence. This is the ability to understand and manage emotions in ourselves and others. The higher your emotional intelligence, the more likely you will be a successful leader.

    • 4.5: Interpersonal Skills

      What makes leaders with high EQ successful is their ability to interact effectively with other people. Good leaders know that managing a successful organization is no longer solely a matter of finances. Organizations that are successful in the long run have leaders with excellent interpersonal skills and business acumen.

    • Unit 4 Conclusion

      There are numerous sources of power that leaders have in the workplace, and with this power comes influence. By understanding power and how it occurs in the workplace, you will understand this type of influence. Power may come in the form of experience, emotional intelligence, or an aggressive coworker. In the next unit, we will cover organizational culture, and how it is created and maintained within the business itself. 

    • Unit 4 Study Resources

    • Unit 4 Assessment

  • Unit 5: Organizational Culture

    Creating, maintaining, and, when necessary, changing organizational culture is one of an organizational leader's main functions. As the head of the organization, you are responsible for setting the example of how everyone else in the company is expected to behave. The organization's culture sets the tone for behavior, unifies the employees, and creates guidelines for what to do in uncertain situations. What's more, it is passed on to future organizational members. So, even when an organization's founder dies, or the culture's creator leaves the organization, the elements of the culture remain in the organization's structure, systems, norms, and values. For this reason, leaders must create strong organizational cultures that guide internal behavior and tell external stakeholders what they can expect from the organization.

    This unit will help you understand what organizational culture is (as opposed to national culture) and how it is defined at several levels. Then it will explain the importance of leadership in creating and changing culture when necessary. Next, it will compare the various cultures that tend to arise in corporate organizations. Finally, it will discuss ethics and corporate social responsibility so you can see the importance of culture to internal and external stakeholders.

    Completing this unit should take you approximately 14 hours.

    • 5.1: Understanding Organizational Culture

      Organizational culture is the part of the internal business environment that holds the organization together. It consists of the norms, values, attitudes, and beliefs that guide everyone in the organization on right and wrong and acceptable and unacceptable behavior. Therefore, creating the right culture is one of the most important parts of the leader's job.

    • 5.2: Leadership and Organizational Culture

      As stated in the previous section, creating the right culture is one of the most important parts of the leader's job. The founder or current leader of an organization is the person who sets the tone for the culture of the entire organization. In other words, leaders are role models of appropriate and expected beliefs and behaviors for all other employees. Done well, an organization with an ethical leader can set an example for others to use for best practices. Done poorly, an organization with an unethical leader will eventually collapse in scandal.

    • 5.3: Types of Organizational Culture

      As with most aspects of business, one culture does not fit all. Organizations must adapt their cultures to meet the demands of changing organizational environments. In this section, you will read about different types of culture, the difference between strong and weak cultures, and how culture can vary even within the same organization.

    • 5.4: Organizational Ethics and Social Responsibility

      Although organizational culture covers most of an organization's internal environment, it also affects the external business environment. Good leaders set and model high ethical standards for the entire organization. This means everyone in the organization is expected to treat stakeholders ethically and responsibly, which often goes above and beyond what written law requires.

    • Unit 5 Conclusion

      This unit covered organizational culture -- from the various types of culture, to how companies might create and maintain culture in the workplace. It is always a good idea for leaders to not only support the company culture, but also to lead with that culture in mind. In the next unit, we will cover managing in groups and teams and why it is important for any leader to develop skills in this area. 

    • Unit 5 Study Resources

    • Unit 5 Assessment

  • Unit 6: Leading Groups and Teams

    Whether your power base is legitimate or otherwise, you may be in a leadership position within a group or team. But what is the difference between a group and a team? The first unit touched on this, but further distinctions are needed. Groups are often formed organically. Think about a group of car enthusiasts: they come together because of similar interests. There may not be an underlying goal other than to share ideas and discuss topics of mutual interest. Teams are formed more strategically. For example, think about a professional sports team; management carefully selects and trains players, and together they work toward the common goal of winning games. Teams should function the way a group does: with a more relaxed atmosphere, allowing each contributor to feel comfortable in their role. Maintaining this atmosphere can be difficult because teams sometimes work in stressful environments. This is why building a good team with great dynamics is so important and challenging. A team that functions well together will be more productive than a team that does not have a good dynamic. Thus, this unit will enable you to explore the world of teams and groups. You will learn about the internal processes that underlie team/group formation and maintenance and the role of leadership in these types of settings. The unit opens with a discussion of diversity. While the value of diversity in an organization is not restricted to team processes, scholars and business practitioners agree that a diverse membership improves team performance.

    As stated throughout, this course will not make you a good leader or team member, but it can give you the tools that will help you recognize what makes the team effective and identify the players that serve best as leaders.

    Completing this unit should take you approximately 10 hours.

    • 6.1: Managing Diversity

      Having a diverse workforce means more than just demographic differences. It also means all your employees feel comfortable and included equally in their work environment. Building diverse work teams is one way to build diverse organizations.

    • 6.2: Internal Group Processes

      Understanding group dynamics is crucial to managing successful teams. Communication within groups, team size, and group cohesiveness are just some factors that affect group function.

    • 6.3: Building and Managing Teams

      Building and managing a team is important for leaders to understand. This section covers information on putting teams together and managing them for success.

    • 6.4: Team Leadership

      As a final lesson, you should consider what you will need to think, how you will need to behave, and which skills you will need to acquire to become the best leader you can be. What will your leadership style be? At what level of the organization will you be the most effective leader? What type of communication and influence will you use? How will you change when your organization needs to change? If you can honestly answer these questions about yourself, you have the knowledge and introspection it takes to be a successful leader.

    • Unit 6 Conclusion

      This unit covered the value in managing groups and teams. A diverse workforce is more than demographic differences, but includes making all employees feel comfortable and included equally in their work environment. It is important for all leaders to understand how to build and maintain a team that works well together. 

    • Unit 6 Study Resources

    • Unit 6 Assessment

  • Course Conclusion

    Strategic management leadership is an important topic that assists all leaders with creating, organizing, and managing teams. This course covered management, organizational culture, uses of power in the workplace, and how teams are formed, function, and are maintained. The skills learned in this course will help any leader to understand their own leadership skills and successfully manage a healthy team. 

    If you found this course interesting, check out PRDV214: Organizational Communication and our other professional development courses: https://learn.saylor.org/course/index.php?categoryid=19

  • Study Guide

    This study guide will help you get ready for the final exam. It discusses the key topics in each unit, walks through the learning outcomes, and lists important vocabulary. It is not meant to replace the course materials!

  • Certificate Final Exam

    Take this exam if you want to earn a free Course Completion Certificate.

    To receive a free Course Completion Certificate, you will need to earn a grade of 70% or higher on this final exam. Your grade for the exam will be calculated as soon as you complete it. If you do not pass the exam on your first try, you can take it again as many times as you want, with a 7-day waiting period between each attempt. Once you pass this final exam, you will be awarded a free Course Completion Certificate.

  • Course Feedback Survey

    Please take a few minutes to give us feedback about this course. We appreciate your feedback, whether you completed the whole course or even just a few resources. Your feedback will help us make our courses better, and we use your feedback each time we make updates to our courses. If you come across any urgent problems, email contact@saylor.org.