Page 315 - Business Principles and Management

Unit 4

12.2 Developing Leadership Skills

Goals Terms
• Discuss why businesses value lead- • self-understanding • team building
ership skills of managers and
employees.
• Identify and define five important
human relations skills.

Leadership in Business

For the most part, people are not “born” leaders. Through training and per-
sonal development, individuals can improve their leadership qualities. People
can learn to be dependable, to take initiative, to cooperate with others, and
so on. Training and experience can improve a manager’s judgment in making
business decisions. Most people can become effective leaders with preparation
and practice.
Managers are not the only people in an organization who need leadership skills.
Many businesses are using employee teams to plan work and make decisions.
The team may include a manager, although many do not. Even when a manager
is a part of the team, the leader of the group will not always be the manager. As
the team completes various projects, individual team members may assume leader-
ship for specific activities. If the team is well organized, the leaders will have expert
and identity power to get individual projects completed. The entire team may be
given position and reward power that they can use to manage team activities and to
achieve the team goals.
Today, companies frequently evaluate applicants’ leadership abilities before
hiring them. Companies often prefer to hire workers who have already developed
many leadership characteristics and have had leadership experience. Training
programs for employees emphasize team building and leadership development.
Some companies allow employees to volunteer for leadership training, whereas
others expect everyone to be involved. Companies recognize that employees
with leadership skills can make valuable contributions to a business’s success.
It is important to take advantage of leadership development opportunities when-
ever they occur.

CHECKPOINT

What are ways that businesses develop the leadership skills
of employees?

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