Organizational
Behavior, 8e
Schermerhorn, Hunt, and
Osborn
Prepared by
Michael K. McCuddy
Valparaiso University
John Wiley & Sons, Inc.
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Organizational Behavior: Chapter 14
2
Chapter 14
High Performance Leadership
 Study questions.
– What is leadership, and how does it differ
from management?
– What are the trait and behavioral leadership
perspectives?
– What are the situational or contingency
leadership approaches?
– How does attribution theory relate to
leadership?
Organizational Behavior: Chapter 14
3
Chapter 14
High Performance Leadership
 Study questions — cont.
– What are the new leadership perspectives, and
why are they especially important in high
performance organizations?
Organizational Behavior: Chapter 14
4
What is leadership, and how does
it differ from management?
 Management promotes stability or enables the
organization to run smoothly.
 Leadership promotes adaptive or useful changes.
 Persons in managerial positions may be involved
with both management and leadership.
 Both management and leadership are needed for
organizational success.
Organizational Behavior: Chapter 14
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What is leadership, and how does
it differ from management?
 Leadership is a special case of
interpersonal influence that gets an
individual or group to do what the leader or
manager wants done.
 Forms of leadership:
– Formal leadership.
– Informal leadership.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Trait theories.
– Assume that traits play a key role in:
• Differentiating between leaders and nonleaders.
• Predicting leader or organizational outcomes.
– Great-person-trait approach.
• Earliest approach in studying leadership.
• Tried to determine the traits that characterized
great leaders.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Identifiable characteristics of leaders.
– Energetic.
– Operate on an even keel.
– Seek power as a means of achieving a vision or goal.
– Ambitious.
– High need for achievement.
– Recognize their own strengths and weaknesses.
– Oriented toward self-improvement.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Identifiable characteristics of leaders — cont.
– Integrity.
– Not easily discouraged.
– Deals well with large amounts of information.
– Above-average intelligence.
– Good understanding of their social setting.
– Possess specific knowledge concerning their industry,
firm, and job.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Behavioral theories.
– Assume that leader behaviors are crucial for
explaining performance and other
organizational outcomes.
– Major behavioral theories.
•
•
•
•
Michigan leadership studies.
Ohio State leadership studies.
Leadership Grid.
Leader-Member Exchange (LMX) theory.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Michigan leadership studies.
– Employee-centered supervisors.
• Place strong emphasis on subordinate’s welfare.
– Production-centered supervisors.
• Place strong emphasis on getting the work done.
– Employee-centered supervisors have more
productive work groups than productioncentered supervisors.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Ohio State leadership studies.
– Consideration.
• Concerned with people’s feelings and making
things pleasant for the followers.
– Initiating structure.
• Concerned with defining task requirements and
other aspects of the work agenda.
– Effective leaders should be high on both
consideration and initiating structure.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Leadership Grid.
– Developed by Robert Blake and Jane Mouton.
– Built on dual emphasis of consideration and
initiating structure.
– A 9 x 9 Grid (matrix) reflecting levels of
concern for people and concern for task.
• 1 reflects minimum concern.
• 9 reflects maximum concern.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Leadership Grid — cont.
– Five key Grid combinations.
• 1/1 — low concern for production, low concern for people.
• 1/9 — low concern for production, high concern for people.
• 5/5 — moderate concern for production, moderate concern
for people.
• 9/1 — high concern for production, low concern for people.
• 9/9 — high concern for production, high concern for people.
Organizational Behavior: Chapter 14
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What are the trait and behavioral
leadership perspectives?
 Leader-Member Exchange (LMX) theory.
– Focuses on the quality of the working
relationship between leaders and followers.
– LMX dimensions determine followers’
membership in leader’s “in group” or “out
group.”
– Different relationships with “in group” and
“out group.”
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Leader traits and behaviors can act in conjunction
with situational contingencies.
 The effects of leader traits are enhanced by their
relevance to situational contingencies.
 Major situational contingency theories.
–
–
–
–
Fiedler’s leadership contingency theory.
Fiedler’s cognitive resource theory.
House’s path-goal theory of leadership.
Hersey and Blanchard’s situational leadership model.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Fiedler’s leadership contingency theory.
– Initiated the situational contingency approach
in the mid-1960s.
– Fiedler’s approach emphasized that group
effectiveness depends on an appropriate match
between the leader’s style and situational
demands.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Key variables in Fiedler’s contingency
model.
– Situational control.
• The extent to which a leader can determine what
his or her group is going to do as well as the
outcomes of the group’s actions and decisions.
• Is a function of:
– Leader-member relations.
– Task structure.
– Position power.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Key variables in Fiedler’s contingency
model — cont.
– Least preferred co-worker (LPC) score reflects
a person’s leadership style.
• High-LPC leaders have a relationship-motivated
style.
• Low-LPC leaders have a task-motivated style.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Implications of Fiedler’s contingency
model.
– Task-motivated leaders have more effective
groups under conditions of low or high
situational control.
– Relationship-motivated leaders have more
effective groups under conditions of moderate
situational control.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Fiedler’s cognitive resource theory.
– Cognitive resources are abilities or competencies.
– A leader’s use of directive or nondirective behavior
depends on:
• The leader’s or subordinate group members’ ability or
competency.
• Stress.
• Experience.
• Group support of the leader.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Fiedler’s cognitive resource theory — cont.
– Directiveness is most helpful for performance
when the leader is:
• Competent.
• Relaxed.
• Supported.
– Otherwise nondirectiveness is preferred.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Evaluation and application of Fiedler’s
contingency theory.
– Controversy regarding what LPC actually
measures.
– Leader match training.
• Leaders are trained to diagnose the situation to
match their LPC scores with situational control.
• Also shows how situational control variable can be
changed to obtain a match.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 House’s path-goal theory of leadership.
– Emphasizes how a leader influences
subordinates’ perceptions of both work goals
and personal goals and the links, or paths,
found between these two sets of goals.
– The theory assumes that a leader’s key
function is to adjust his/her behavior to
complement situational contingencies.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 House’s path-goal theory of leadership —
cont.
– Leader behaviors.
• Directive leadership.
• Supportive leadership.
• Achievement-oriented leadership.
• Participative leadership.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 House’s path-goal theory of leadership —
cont.
– Situational contingency variables.
• Subordinate attributes — authoritarianism,
internal-external orientation, and ability.
• Work setting attributes — task, formal authority
system, and primary work group.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Path-goal theory predictions regarding
directive leadership.
– Positive impact on subordinates when task is
clear; negative impact when task is
ambiguous.
– More directiveness is needed when ambiguous
tasks are performed by highly authoritarian
and closed-minded subordinates.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Path-goal theory predictions regarding
supportive leadership.
– Increases satisfaction of subordinates working
on highly repetitive, unpleasant, stressful, or
frustrating tasks.
Organizational Behavior: Chapter 14
28
What are the situational or contingency
leadership approaches?
 Path-goal theory predictions regarding
achievement-oriented leadership.
– Encourages subordinates to strive for higher
performance standards and to have more
confidence in their ability to meet challenging
goals.
– Increases effort-performance expectancies for
subordinates working in ambiguous,
nonrepetitive tasks.
Organizational Behavior: Chapter 14
29
What are the situational or contingency
leadership approaches?
 Path-goal theory predictions regarding
participative leadership.
– Promotes satisfaction on nonrepetitive tasks
that allow for subordinates’ ego involvement.
– Promotes satisfaction for open-minded or
nonauthoritarian subordinates working on
repetitive tasks.
Organizational Behavior: Chapter 14
30
What are the situational or contingency
leadership approaches?
 Evaluation and application of House’s
path-goal theory.
– Many aspects of the theory have not been
adequately tested.
– Lacks substantial current research.
– House has revised and extended path-goal
theory into a theory of work unit leadership.
Organizational Behavior: Chapter 14
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What are the situational or contingency
leadership approaches?
 Hersey and Blanchard’s situational
leadership model.
– Emphasizes the situational contingency of
maturity, or “readiness,” of followers.
– Readiness is the extent to which people have
the ability and willingness to accomplish a
specific task.
Organizational Behavior: Chapter 14
32
What are the situational or contingency
leadership approaches?
 Hersey and Blanchard’s situational
leadership model — cont.
– Leader style and follower readiness.
• A telling style is best for low readiness.
• A selling style is best for low to moderate
readiness.
• A participating style is best for moderate to high
readiness.
• A delegating style is best for high readiness.
Organizational Behavior: Chapter 14
33
What are the situational or contingency
leadership approaches?
 Substitutes for leadership.
– Sometimes hierarchical leadership makes
essentially no difference.
– Substitutes for leadership make a leader’s
influence either unnecessary or redundant.
Organizational Behavior: Chapter 14
34
What are the situational or contingency
leadership approaches?
 Examples of leadership substitutes.
– Individuals’ experience, ability, and training.
– Individuals’ professional orientation.
– Highly structured/routine jobs.
– Intrinsically satisfying jobs.
– Cohesive work group.
Organizational Behavior: Chapter 14
35
What are the situational or contingency
leadership approaches?
 Examples of leadership neutralizers.
– Individual indifference toward organizational
rewards.
– Low leader position power.
– Physical separation of leader.
Organizational Behavior: Chapter 14
36
How does attribution theory
relate to leadership?
 Attribution theory recognizes that
leadership and its effects may not be able
to be identified and measured objectively.
 Leaders’ and subordinates’ behaviors are
significantly influenced by the attributions
each makes about the other’s behavior.
Organizational Behavior: Chapter 14
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How does attribution theory
relate to leadership?
 Leadership prototypes.
– People’s mental image of what a model leader
should look like.
– A mix of specific and more general
characteristics.
– Some core characteristics — like integrity and
self-efficacy — are probably universal across
leadership situations.
Organizational Behavior: Chapter 14
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How does attribution theory
relate to leadership?
 Leadership prototypes — cont.
– Prototypes may differ by country and by
national culture.
– The closer that a leader’s behavior matches the
prototype held by the followers, the more
favorable the leader’s relations and key
outcomes.
Organizational Behavior: Chapter 14
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How does attribution theory
relate to leadership?
 Exaggeration of the leadership difference.
– CEOs, particularly of large corporations, may
have little leadership impact on profits and
effectiveness compared to environmental and
industry forces.
– Romance of leadership.
• People attribute almost magical qualities to
leadership.
Organizational Behavior: Chapter 14
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What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 New leadership emphasizes:
– Charismatic approaches.
– Transformational approaches.
– Aspects of vision related to charismatic and
transformational approaches.
 New leadership is important in changing and
transforming individuals and organizations with a
commitment to high performance.
Organizational Behavior: Chapter 14
41
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Charismatic approaches to leadership.
– Charismatic leaders, by force of their personal
abilities, can have a profound and
extraordinary effect on followers.
– Characteristics of charismatic leaders include:
• High need for power.
• High feelings of self-efficacy.
• Conviction in the moral rightness of their beliefs.
Organizational Behavior: Chapter 14
42
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Charismatic approaches to leadership —
cont.
– Charismatic behaviors include:
• Role modeling.
• Image building.
• Articulating goals.
• Emphasizing high expectations.
• Showing confidence.
• Arousing follower motives.
Organizational Behavior: Chapter 14
43
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Dark side versus bright side of charismatic
leadership.
– Dark side.
• Emphasizes personalized power.
• Leaders focus on themselves.
– Bright side.
• Emphasizes socialized power.
• Leaders empower followers.
Organizational Behavior: Chapter 14
44
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Conger and Kanungo’s three-stage charismatic
leadership model.
– Stage 1: The leader critically evaluates the status quo.
– Stage 2: The leaders formulates and articulates future
goals and a idealized future vision.
– Stage 3: The leader shows how the goals and vision
can be achieved.
Organizational Behavior: Chapter 14
45
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Conger and Kanungo’s three-stage
charismatic leadership model — cont.
– If leaders use behaviors such as vision
articulation, environmental sensitivity, and
unconventional behavior, followers will
attribute charismatic leadership to them.
Organizational Behavior: Chapter 14
46
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Charismatic leadership relative to close-up
and at-a-distance leaders.
– Both types of leaders are viewed as
charismatic but possess quite different traits
and behaviors.
Organizational Behavior: Chapter 14
47
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Transactional leadership.
– Involves leader-follower exchanges necessary
for achieving routine performance agreed
upon between leaders and followers.
– Leader-follower exchanges involve:
•
•
•
•
Use of contingent rewards.
Active management by exception.
Passive management by exception.
Abdicating responsibilities and avoiding decisions.
Organizational Behavior: Chapter 14
48
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Transformational leadership occurs when
leaders:
– Broaden and elevate their followers’ interests.
– Generate awareness and acceptance of the
group’s purposes and mission.
– Stir their followers to look beyond their own
self-interests to the good of others.
Organizational Behavior: Chapter 14
49
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Dimensions of transformational leadership.
– Charisma.
• Provides vision and a sense of mission; and instills
pride, respect, and trust in followers.
– Inspiration.
• Communicates high expectations, uses symbols to
focus efforts; expresses important purposes in
simple ways.
Organizational Behavior: Chapter 14
50
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Dimensions of transformational leadership
— cont.
– Intellectual stimulation.
• Promotes intelligence, rationality, and careful
problem solving.
– Individualized consideration.
• Provides personal attention, treats each employee
individually, and coaches and advises.
Organizational Behavior: Chapter 14
51
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Transformational leadership is likely to be
strongest at the top-management level.
 Transformational leadership is found
through the organization.
 Transformational leadership operates in
combination with transactional leadership.
Organizational Behavior: Chapter 14
52
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Leadership in high performance work teams.
– Leaders in self-directing work teams act as
coordinators.
– Behaviors in the coordinator role emphasize the
development of self-leadership on the part of team
members.
• Self-leadership acts as a partial substitute for hierarchical
leadership.
• While coordinator behaviors encourage follower
participation, they are not charismatic behaviors.
Organizational Behavior: Chapter 14
53
What are the new leadership perspectives,
and why are they especially important in
high performance organizations?
 Some new leadership issues.
– People can be trained in new leadership
approaches.
– New leadership is not always good or needed.
– New leadership should be used in conjunction
with traditional leadership.
Organizational Behavior: Chapter 14
54