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Leadership is any process of leaders influencing followers. A leader, sometimes likened to a magnet, is one to whom others look for guidance. Influence is the ability or capacity to get another person to do or believe X rather than Y. One vital source of influence is formal authority to command, held for example by business executives. An individual not possessing any formal authority may acquire moral influence equivalent to informal authority through persuasion, example, or ideas. Varying sources and means of influence, together with the morality of ends and means of influence, are key dimensions of leadership. Where control of important resources overlaps with formal or informal authority, it is an aspect of leadership.

This entry will first explain the prevailing prescriptive theory of leadership. Subsequent sections comment on examples of business leadership, ethics of leadership, methods for effective leadership, competing conceptions of leadership, the relationship between leadership and management, and the roles of emotional intelligence and charisma. The conclusion guides the reader to the classical literature on leadership.

The Prescriptive Theory of Leadership

Prescriptive theory emphasizes good leadership as a calculated process of leaders honorably influencing followers to achieve group welfare gains. Leadership in democratic societies should be “servant leadership,” defined as service on behalf of others. Organizational or societal success requires executives with effective leadership skills and strong moral values, and also widespread distribution of such skills and values in the sense of “empowerment” of followers. General Norman Schwarzkopf, commander of U.S. forces during the 1991 Gulf War, characterizes this prescriptive theory of leadership in terms of a combination of competence and character. Good leadership has the connotation of successful outcomes achieved through effective and moral means. Bad leadership has the connotation of ineffectiveness or unethical means resulting in unsuccessful outcomes for the group. Pragmatic leadership has the connotation of flexibility rather than of tolerance for unethical means to obtain moral ends.

Success, effectiveness, and ethics may not automatically coincide. A successful leader improves group welfare; an unsuccessful leader does not. Evaluation of success involves goal legitimacy and the definition of a time horizon over which success occurs. A competent leader is effective at influencing followers. Ethical leadership means that individuals of high moral standards seek ethically desirable ends through ethically acceptable means. Unethical leadership involves an amoral or immoral leader who acts for purely personal benefit regardless of consequences to others. An amoral person has no moral standards, no sense of right or wrong. An amoral leader simply calculates personal returns and risks. An immoral person has low or corrupt moral standards. An unethical leader may be just as effective at influence as a moral leader. An effective leader may be successful or unsuccessful depending on circumstances beyond his or her control. The prescriptive theory predicts that over time, moral leadership will outperform unethical leadership in terms of influence, effectiveness, and successful group outcomes.

William James's 1880 essay on leadership makes a distinction between leadership in thought and action. Action leadership has immediate impact. It occurs in response to prevailing conditions. Action leadership can be thought of as acting directly. A business executive is engaged in action leadership. Thought leadership has long-term consequences. It can be thought of as acting indirectly. An artist or scientist is engaged in thought leadership.

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