MANAGEMENT
1st E D I T I O N
Gulati | Mayo | Nohria
Chapter 12
LEADERSHIP IN
ORGANIZATIONS
INDIVIDUAL
PERSPECTIVE
©South-Western, a part of Cengage Learning
PowerPoint Presentation by Charlie Cook
Learning Objectives
• Explain why the study of leadership is so complicated
and identify some of the various debates about the study
of leadership
• Describe the different theories of leadership that have
emerged from the study of individual readers
• Describe how leaders are influenced by followers and
describe the theories of leadership that have been
derived from analyzing the leader-follower dynamic
• Explain how the situational context influences the
exercise of leadership
© South-Western, a part of Cengage Learning
12–2
The Leader:
Who is a Leader? Traits and Skills
“Great Man”
theory
Explained leadership by examining the traits and
characteristics of individuals considered to be
historically great leaders
Traits-based
leadership
theory
Tries to reveal a set of universal traits and skills
that are relevant in all leadership situations
Common
leadership
traits
© South-Western, a part of Cengage Learning
•
•
•
•
•
•
Self-confidence
Initiative
Risk taking
Persistence
High level of physical energy
Motivation to complete tasks
12–3
Leadership Skills
Cognitive
skills
A leader’s ability to understand the internal and
external environments, make decisions with sound
reasoning, and communicate effectively
Technical
skills
A leader’s knowledge about an organization and
job-related activities
Interpersonal
skills
Character
© South-Western, a part of Cengage Learning
A leader’s ability to interact with others
The core values and fundamental beliefs that drive
behavior in variable situations
12–4
Leadership Style
The pattern of behaviors that leaders use in situations
Task-oriented
behavior
Behaviors that prioritize the accomplishment of a
task in an efficient and reliable way
Relationsoriented
behavior
Behaviors that prioritize interpersonal
relationships, the value of workers as humans, and
a strong commitment to the unit and its mission
© South-Western, a part of Cengage Learning
12–5
Figure 12.1 - The Managerial Grid
© South-Western, a part of Cengage Learning
12–6
The Charismatic Leader
Individuals who arouse strong followership through
inspirational visions and/or compelling personal
attributes
Charismatic
leaders
• Exhibit extreme self-confidence about their values
Patterns in
charismatic
leaders
• Possess willingness to take personal risks
• Have a strong moral conviction to exercise their
power positively
• Communicate vision through powerful imagery,
symbolism, and metaphor
© South-Western, a part of Cengage Learning
12–7
Transformational Leadership Theory
Transformational
leadership
Components of
transformational
leadership
© South-Western, a part of Cengage Learning
The set of behaviors that leaders use to transform,
or change, their organization and individuals for
the better
• Charisma and vision
• Inspirational motivation
• Intellectual stimulation
• Individualized consideration
12–8
Transactional Leadership Theory
Transactional
leadership
Components of
transactional
leadership
© South-Western, a part of Cengage Learning
The process of a leader providing something the
subordinates want
• Contingent reward
• Active management-by-exception
• Passive management-by-exception
12–9
Components of Transactional Leadership
Contingent
reward
Management-byexception
© South-Western, a part of Cengage Learning
The exchange process between leaders and
followers in which leaders offer rewards to
subordinates in exchange for their services
A method of leadership done passively or actively
that describes when leaders should intervene to
increase a subordinate’s effort to meet standards
12–10
Leader-Member Exchange Theory
Leader-member
exchange (LMX)
theory
A method of leadership in which leaders treat each
member differently, and as a result, develop unique
relationships with each member
In-groups
Favored
subordinates
Out-groups
Favored subordinates
who are assigned more
interesting tasks, given
greater responsibility
and authority, and
receive more tangible
rewards and more
resources
Subordinates who are
expected to simply
comply with formal rules
and do what is required
of them; as a result, they
receive the standard
benefits of the job
© South-Western, a part of Cengage Learning
12–11
The LMX Relationship Life Cycle:
The Role-Making Process
Relationship
life cycle
Phases in which a leader and follower undergo a
process that dictates whether followers become part
of the in-group or out-group
1
Stranger phase - Leaders and subordinate interactions are
formal and based on organizational policies
2
Acquaintance phase - When a leader offers the subordinate
a chance to increase his or her responsibility in the group
and the subordinate must accept the new role
3
Mature partnership phase - Leaders and followers develop
strong mutual trust, respect, and obligation
© South-Western, a part of Cengage Learning
12–12
The Leader, the Followers, and the Situation
Fiedler contingency
model
Leaders are more effective depending on the favorability of
a leadership situation, which is described by leadermember relations, task structure, and positional power of
the leader
Leader-member relations
• Quality of relationships between leaders and
followers
Task structure
• Extent to which standard procedures are in place
to complete a task
Positional power
• Extent to which a leader has authority to evaluate
performance and administer rewards or
punishments
© South-Western, a part of Cengage Learning
12–13
Hersey and Blanchard’s Situational Theory
Situational
leadership
theory
Leaders have the flexibility and range of skills to
adapt their leadership behavior. This type of
leadership is based on the interplay of:
1
The amount of task-related behaviors
a leader exhibits
2
The amount of relationship-related
behaviors a leader exhibits
3
The level at which followers are
mature enough to perform a specific
task, function, or objective
© South-Western, a part of Cengage Learning
12–14
Figure 12.2 - Leadership Styles Mapped to Subordinates’ Characteristics
© South-Western, a part of Cengage Learning
12–15
House’s Path-Goal Theory
Path-goal
theory of
leadership
Task
characteristics
The most important aspect in leadership is
the follower’s expectation that a task can be
accomplished and that it will lead to rewards
Leader
behaviors
Subordinates’
characteristics
• Structured or
unstructured
• Directive
• Participative
• Preferences for
structure
• Repetitive or
diverse
• Supportive
• Desire for control
• Achievementoriented
• Confidence in
ability
• Simple or
complex
© South-Western, a part of Cengage Learning
12–16
Leadership Substitutes and Neutralizers
Substitutes
Neutralizers
© South-Western, a part of Cengage Learning
Aspects of a situation that make leadership unnecessary
Aspects of a situation that hinder a leader’s ability to act a
particular way
12–17
KEY TERMS
Character
Charismatic leaders
Cognitive skills
Contingent reward
Fiedler contingency model
“Great Man” theory
Interpersonal skills
Leader-member exchange theory
Leadership neutralizers
Leadership style
Leadership substitutes
Management-by-exception
© South-Western, a part of Cengage Learning
Managerial grid
Path-goal theory of leadership
Relationship life cycle
Relations-oriented behavior
Situational leadership
Task-oriented behavior
Technical skills
Traits-based leadership theory
Transactional leadership
Transformational leadership
12–18