Leadership

© 2015 Cengage Learning

What Is Leadership?

• Leadership
– The process of influencing others to achieve group
or organizational goals.

3
 Leaders vs. Managers
• Doing things right
• Doing the right thing
• “How can we do what we’re already
• “What should we be doing?”
doing better?”
• Vision, mission, goals, objectives
• Productivity and efficiency
• Challenge the status quo
• Preservers of status quo
• Long-term view
• Short-term view
• Expand people’s options and choices
• Limit others’ choices
• Inspire and motivate people to find their
• Sole problems so that others can do
own solutions
their work
• Concerned with ends, what gets done
• More concerned with means, how
things get done

© 2015 Cengage Learning 14-1

 Leaders versus Managers

American
Americanorganizations
organizations(and
(andprobably
probablythose
thoseininmuch
much
of
ofthe
therest
restof
ofthe
theindustrialized
industrializedworld)
world)are
areunder
underled
led
and
andover
overmanaged.
managed. They
Theydodonot
notpay
payenough
enough
attention
attentiontotodoing
doingthe
theright
rightthing,
thing,while
whilethey
they
pay
paytootoomuch
muchattention
attentiontotodoing
doingthings
thingsright.
right.

--Warren
--WarrenBennis
Bennis

1.1
5
 Who Leaders Are and
What Leaders Do

Leadership
Leadership Leadership
Leadership
Traits
Traits Behavior
Behavior

Does leadership success depend on who leaders are, such as

introverts or extroverts, or on what leaders do and how they
behave?

6
 Leadership Traits
• Trait Theory
– Effective leaders possess a similar set of
traits or characteristics.
• Traits
– Relative stable characteristic, such as
abilities, psychological motives, or
consistent patterns of behavior.
– For example, according trait theory leaders
are taller, more confident, and have
greater physical stamina than nonleaders.

7
Leadership Traits
Leaders are different than nonleaders in
the following traits:
Desire to Lead
Drive
Knowledge of the Business
Cognitive Ability
Emotional Stability
Self-Confidence
Honesty and Integrity
9
Leadership Traits
• Desire to Lead-Want to be in charge and
influence others
• Drive-high level of effort, motivation, initiative,
energy and tenacity.
• Knowledge of Business-understand key
technological decisions and concerns facing
their company.
• Cognitive Ability-capacity to analyze large
amounts of seemingly unrelated, complex
information.
10
Leadership Traits

• Emotional Stability-remain even-tempered and

consistent in their outlook and in the way they
treat others.
• Self-confidence-believe in one’s abilities.
• Honesty-being truthful with others
• Integrity-the extent to which leaders do what
they said they would do.

11
 Leadership Behaviors
• Concerned with what leaders do.
– The behavior they perform or the actions that
leaders take to influence others.
• Research shows that two basic leader
behaviors emerged as central to successful
leadership:
– Initiating structure
– Consideration

12
 Leadership Behaviors
• Initiating Structure(concern for production
– The degree to which a leader structures the roles of
followers by setting goals, giving directions, setting
deadlines, and assigning tasks. Primarily affects
subordinates’ job performance.
• Consideration(concern for people)
– The extent to which a leader is friendly, approachable,
and supportive and shows concern for employees.
Primarily affects a subordinates’ job satisfaction.

© 2015 Cengage Learning

14-2
Blake/Mouton Leadership Grid

© 2015 Cengage Learning 14-2

 Situational Approaches to Leadership
• Fiedler’s Contingency Theory
• Path Goal Theory
• Vroom and Yetton’s Normative Decision
Model
• These models all assume that the way a leader
generally behaves toward followers depends
on the situation.

15
 Fiedler’s Contingency Theory
In order to maximize work group performance,
leaders must be matched to the right leadership
situation.

•Leaders are effective when the work group they lead performs
well.
•Leaders are generally unable to change their leadership styles, and
they will be more effective when their styles are matched to the
proper situation.
•The favorableness of a situation permits the leader to influence the
behavior of group members.

14-3 © 2015 Cengage Learning

Fiedler’s Contingency Theory:
Putting Leaders in the Right Situation

Situational
Situational
Group
Group
Performance
Performance
= Favorableness
Favorableness

Leadership
Leadership
Style
Style

To maximize work group performance, leaders must be matched

to the right leadership situation.

3
17
Fiedler’s Contingency Theory

Least
Least Preferred
Preferred Coworker
Coworker

Situational
Situational Favorableness
Favorableness

Matching
Matching Leadership
Leadership Styles
Styles
to
to Situations
Situations

18
 Least Preferred Coworker
• Leadership style = the way that leaders generally behave
toward their followers.
• Leadership styles are tied to leaders’ underlying needs and
personalities.
– Since personality and needs are relative stable, then leaders are
generally incapable of changing leadership styles.
– Leaders will be more effective when their leadership styles are
matched to the proper situation
• Leadership style is measured by the Least Preferred Co-worker
scale (LPC)
– Relationship-oriented
– Task-oriented

© 2015 Cengage Learning

14-3
 Leadership Style:
Least Preferred Coworker Scale

People who describe their LPC in a positive manner have relationship

orientated leadership styles. People who describe their LPC in a
negative manner have task orientated leadership styles.
20
Situational Favorableness

The degree to which a particular situation either

permits or denies a leader the chance to influence the
behavior of group members.
Three factors determine the favorability of a
situation:

• Leader-member relations

• Task structure

• Position power
14-3
© 2015 Cengage Learning
Situational Favorableness

• Leader-member relations
– Refers to how well followers respect, trust, and like their leaders.
• Task structure
– The degree that the requirements of a subordinate’s tasks are clearly
specified.
• Position power
– The degree to which leaders are able to hire, fire, reward and punish
workers

22
Situational Favorableness

© 2015 Cengage Learning 14-3

Matching Leadership Styles to Situations

© 2015 Cengage Learning 14-3

 Leaders and Situations
• Fiedler assumes leaders to be incapable of
changing their leadership styles.

• The key − matching leaders to situations…

• …or teaching leaders how to change

situational favorableness

14-3 © 2015 Cengage Learning

 Path-Goal Theory
Leaders can increase subordinate satisfaction and
performance by clarifying and clearing the paths to goals
and by increasing the number and kinds of rewards
available for goal attainment.
While providing the coaching, guidance, support, and
rewards necessary for effective work performance, leader
behaviors must complement and not duplicate the
characteristics of followers' work environments.
Thus, leader behaviors must offer something unique and
valuable to followers beyond what they're already
experiencing as they do their jobs or beyond that which
they can already do for themselves.
14-4 © 2015 Cengage Learning
Basic Assumptions of Path-Goal Theory

Clarify
Clarify paths
paths to
to goals
goals

Clear
Clear paths
paths to
to goals
goals by
by solving
solving problems
problems
and
and removing
removing roadblocks
roadblocks

Increase
Increase the
the number
number and
and kinds
kinds of
of rewards
rewards
available
available for
for goal
goal attainment
attainment

Do
Do things
things that
that satisfy
satisfy followers
followers today
today or
or will
will
lead
lead to
to future
future rewards
rewards or or satisfaction
satisfaction

Offer
Offer followers
followers something
something unique
unique and
and valuable
valuable
beyond
beyond what
what they’re
they’re experiencing
experiencing

27
Path-Goal Theory

© 2015 Cengage Learning 14-4

 Subordinate Contingencies
• Perceived ability
– how much ability subordinates believe they have
for doing their jobs well.
• Locus of control
– internals vs. externals
• Experience

14-4 © 2015 Cengage Learning

 Environmental Contingencies
• Task structure
– the degree to which the requirements of a
subordinate's tasks are clearly specified.
• Formal authority system
– an organization's set of procedures, rules, and policies.
• Primary work group
– refers to the amount of work-oriented participation or
emotional support that is provided by an employee's
immediate work group.

© 2015 Cengage Learning

14-4
 Leadership Styles
• Directive
– letting employees know precisely what is expected of them, giving them specific
guidelines for performing tasks, scheduling work, setting standards of performance,
and making sure that people follow standard rules and regulations.

• Supportive
– involves being friendly and approachable to employees, showing concern for them
and their welfare, treating them as equals, and creating a friendly climate

• Participative
– consulting employees for their suggestions and input before making decisions.

• Achievement-Oriented
– means setting challenging goals, having high expectations of employees, and
displaying confidence that employees will assume responsibility and put forth
extraordinary effort.
31
Path-Goal Theory: When to Use Directive, Supportive,
Participative, or Achievement-Oriented Leadership

© 2015 Cengage Learning 14-4

 Normative Decision Theory
Helps leaders decide how much employee participation
(from none to letting employees make the entire
decision) should be used when making decisions.

14-5 © 2015 Cengage Learning

 Vroom-Yetton-Jago Model
• Many people believe that making tough
decisions is at the heart of leadership.
• However, experienced leaders will tell you that
deciding how to make decisions is just as
important.
• The normative decision theory helps leaders
decide how much employee participation (from
none to letting employees make the entire
decision) should be used when making decisions.
34
Normative Theory, Decisions Styles, and Levels of
Employee Participation

© 2015 Cengage Learning 14-5

Decision Quality and Acceptance

• Using the right amount of

employee participation:
– improves decision quality
– improves acceptance

• Decision trees helps leader

identify optimal level of
participation

36
Normative Theory Decision Rules

© 2015 Cengage Learning 14-5

Normative Decision Theory Tree for Determining the
Level of Participation in Decision Making

© 2015 Cengage Learning 14-5

 Visionary Leadership
Creates a positive image of the future that
motivates organizational members and provides
direction for future planning and goal setting.
Charismatic Leadership
Transformational Leadership

14-6 © 2015 Cengage Learning

 Charismatic Leadership
The behavioral tendencies and personal characteristics of
leaders that create an exceptionally strong relationship with
followers.

•Articulate a clear vision for the future that is based on strongly held
values or morals
•Model those values by acting in a way consistent with the vision
•Communicate high performance expectations to followers
•Display confidence in followers’ abilities to achieve the vision

© 2015 Cengage Learning

14-6
 Charismatic Leadership
• There are two kinds of charismatic leaders.
– Ethical charismatics provide developmental opportunities for
followers, are open to positive and negative feedback,
recognize others’ contributions, share information, and have
moral standards that emphasize the larger interests of the
group, organization, or society.
– Unethical charismatics control and manipulate followers, do
what is best for themselves instead of their organizations,
want to hear only positive feedback, share information that is
only beneficial to themselves, and have moral standards that
put their interests before everyone else’s.
Ethical and Unethical Charismatics

© 2015 Cengage Learning 14-6

 Reducing Risks of
Unethical Charismatics
1. Have a clearly written code of conduct
2. Recruit, select, and promote managers with high
ethical standards
3. Train leaders how to value, seek, and used
diverse points of view
4. Celebrate and reward those who exhibit ethical
behaviors

43
 Transformational Leadership
Generates awareness and acceptance of a group’s
purpose and mission and gets employees to see
beyond their own needs and self interests for the
good of the group.
Make their followers believe that they are a vital
part of the organization

© 2015 Cengage Learning

14-6
 Components of Transformational
Leadership
• Charismatic leadership or idealized influence
– act as role models for their followers.
• Inspirational motivation
– motivate and inspire followers by providing meaning and challenge to
their work.
• Intellectual stimulation
– encourage followers to be creative and innovative, to question
assumptions, and to look at problems and situations in new ways,
even if they are different from the leader's ideas
• Individualized consideration
– pay special attention to followers' individual needs by creating
learning opportunities, accepting and tolerating individual differences,
encouraging two-way communication and being a good listener.
© 2015 Cengage Learning
14-6
 Transactional Leadership
• Based on an exchange process in which
followers are rewarded for good performance
and punished for poor performance.
• When leaders administer rewards fairly and
offer followers the rewards that they want,
followers will often reciprocate with effort.

14-6 © 2015 Cengage Learning

 Transactional Leadership
• The problem, however, is that transactional
leaders often rely too heavily on discipline or
threats to bring performance up to standards.
• This might work in the short term, but it’s
much less effective in the long run.