Vast amounts of information have been gathered about leaders and leadership, and many different leadership theories have been developed. Many leadership research findings and theories are confusing and contradictory. Nevertheless, from this thicket of information emerge many useful leadership concepts and techniques to guide you toward becoming a more effective leader. As you work toward leadership effectiveness, first be familiar with the approaches to leadership described in this text. Then choose the formulation that seems best to fit the leadership situation you face. For example, if you are leading a team, review the information about team leadership. Typically, an effective leader needs to combine several leadership approaches to meet the demands of a given situation. For instance, a leader might need to combine creative problem solving and emotional support to members to help the team rebound from a crisis. The eclectic (choosing from among many) approach we recommend is likely to be more effective than accepting an idea such as “there are six secrets to leadership success.” 1. Why bother studying leadership when fields such as petroleum engineering and physician assistant pay high starting salaries? 2. Give an example of how you have exerted leadership on or off the job in a situation in which you did not have a formal leadership position. Explain why you describe your activity as leadership. 3. What would a boss of yours have to do to demonstrate that he or she is an effective leader and an effective manager? 4. Identify a business or sports leader whom you think is highly effective and explain why you think he or she is highly effective. 5. Many people who were voted “the most likely to succeed” in their high school yearbooks become leaders later on in their career. How can you explain this finding? 6. Why might experience in managing entry-level workers, such as in a fast-food restaurant, be valuable leadership experience? 7. If so, much useful information is available about leadership, why do we still find so many managers who cannot gain the respect of their subordinates? 8. Considering that so many people of all ages do much of their communication with text messages, what would be wrong with leaders communicating with group members mostly through texting? 9. Which one or two of the ten leadership roles described in this chapter do you think require the highest level of skill? Why? 10. In what way might being an effective follower help prepare a person for becoming an effective leader?

 

Question 1

The market in the small rural town of Centerville has been very hot. Values are leveling off but single family residences remain scarce. A potential buyer asks about the advisability of buying some farmland outside of town to develop into single family lots for sale to builders. She has noticed several builders already getting ready for new subdivisions by preparing new lots. How might a broker best advise this potential buyer?

A – He should suggest to this potential buyer that her timing is perfect. The slowing residential market will give her a chance to get the lots ready and she can probably pre-sell some to builders to raise some cash. Since strong markets usually last a decade or more, she should line up her financing and get started.

B – In a cycle like the one described, builders always know what is going on, so playing “follow the leader” is a smart move. The builders obviously feel that all of their new homes will sell quickly, so a broker should encourage this potential buyer to go ahead with her plan so she can be ready to profit by providing the next round of lots.

C – He should advise that the current shortage will likely continue to drive prices up and make this potential buyer’s plan feasible. As the town prices rise, the price of surrounding land will fall because of the encroachment of suburban neighborhoods. Land is much cheaper than developed lots, so there is plenty of room for profit. The broker may even encourage the buyer to select a farm property and offer to join in her venture by contributing his commission to the project.

D – He should advise this potential buyer that development of raw land is risky and complex. It will take time and considerable money to produce satisfactory finished lots with zoning, utilities and other amenities. The market shows signs of slowing, so the time to market is a risk. This buyer may be better served by exploring other investment opportunities in real estate.

Question 2

Which of the following is NOT a good reason to recommend the seller provide a home warranty?

A – The National Association of Realtors statistics show homes with a warranty sell 15% faster.

B – Purchasing a home warranty is a good method of risk reduction for a seller to consider.

C – The fee the home warranty company pays will increase the cash flow for the brokerage.

D – Sixty-eight percent of used homes will have a major system failure the very first year purchased.