Leadership
Chapter Ten
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
What Do People Want from their
Leaders?
Help in achieving their goals
Support for personal development
Clearing obstacles to high-level performance
Treatment that is respectful, fair, and ethical.
10-3
10-3
What Do Organizations Need?
Organization need people at all levels to be
leaders.
10-4
10-4
Key Leadership Behaviors
The best leaders do five things:
 Challenge the process
 Inspire a shared vision
 Enable others to act
 Model the way
 Encourage the heart
10-5
Vision
Vision
 A mental image of a
possible and desirable
future state of the
organization.
10-6
Vision
Visions in action
 Visions can be small or large and exist throughout
all organizational levels, as well as at the very top.
 A vision is necessary for effective leadership.
 A person or team can develop a vision for any
job, work unit, or organization.
 Many people, including managers who do not
develop into strong leaders, do not develop a
clear vision – they focus on performing or
surviving on a day-to-day basis.
10-7
10-7
Inappropriate Vision
An inappropriate vision may reflect only the
leader’s personal needs.
An inappropriate vision may ignore
stakeholder needs.
An inappropriate vision may need to change.
10-8
10-8
Leaders versus Managers
MANAGERS
LEADERS
Do things right
Status quo
Short-term
Means
Builders
Problem solving
Do the right thing
Change
Long-term
Ends
Architects
Inspiring & motivating
1.1
9
10-9
Leading and Managing
Supervisory
leadership
 Behavior that provides
guidance, support,
and corrective
feedback for day-today activities.
Strategic leadership
 Behavior that gives
purpose and meaning
to organizations,
envisioning and
creating a positive
future.
10-10
Good leaders need good followers
Organizations succeed or fail not only because of
how well they are led but also because of how
well followers follow.
The most effective followers are capable of:
 Independent thinking.
 Actively committed to organizational goals.
Effective followers are distinguished from
ineffective ones by their enthusiasm and
commitment to the organization and to a person
or purpose – an idea, a product – other than
themselves or their own interests.
10-11
10-11
Power and Leadership
Power
 The ability to influence others.
10-13
Sources of Power
Legitimate
Coercive
Referent
Reward
Expert
10-14
Sources of Power
Exhibit 10.1
10-15
Power
Legitimate power is where the leader has the right, or
authority to tell others what to do; employees are obligated
to comply with legitimate orders.
Reward power is where the leader influences others
because she or he controls valued rewards; people comply
with the leader’s wishes in order to receive those rewards.
Coercive power is where the leader has control over
punishments; people comply to avoid those punishments.
Referent power is where the leader has personal
characteristics that appeal to others; people comply
because of admiration, a desire for approval, personal
liking, or a desire to be like the leader.
Expert power is where the leader has certain expertise or
knowledge; people comply because they believe in, can
learn from, or can otherwise gain from that expertise. 10-16
10-16
Traditional Approaches to
Understanding Leadership
Trait approach
 is the oldest leadership perspective and was
dominant for several decades.
 The perspective is that some personality
characteristics – many of which a person need
not be born with but can strive to acquire
distinguish effective leaders from other people.
10-17
Useful Leadership Characteristics
Drive
Leadership Motivation
Integrity
Self Confidence
Knowledge of the Business
10-18
Leader Behaviors
Behavioral approach
 A leadership perspective that attempts to identify
what good leaders do—that is, what behaviors
they exhibit.
 The three general categories of leadership are:
• Task-performance behaviors
• Group maintenance behaviors
• Leader-Member Exchange (LMX)
10-19
Leader Behaviors
Task performance behaviors
 Actions taken to ensure that the work group or
organization reaches its goals.
10-20
Task Performance Behaviors
This dimension is sometimes referred to as:
 concern for production
 directive leadership
 initiating structure or closeness of supervision.
It includes a focus on:
 work speed
 quality and accuracy
 quantity of output
 following the rules.
10-21
10-21
Group Maintenance
Group maintenance behaviors
 Actions taken to ensure the satisfaction of group
members, develop and maintain harmonious
work relationships, and preserve the social
stability of the group
10-22
Group Maintenance
This dimension is sometimes referred to as:
 concern for people
 supportive leadership
 consideration.
It includes a focus on:
 People’s feelings and comfort
 Appreciation of the person
 Stress reduction
10-23
10-23
Group Maintenance
Leader-Member Exchange (LMX) theory
 Highlights the importance of leader behaviors not
just toward the group as a whole but toward
individuals on a personal basis.
This includes a focus on:
 Trust
 Open communication
 Mutual respect
 Mutual obligation
 Mutual loyalty
10-24
Questions Assessing Task Performance
and Group Maintenance Leadership
Exhibit 10.2
10-25
Participation in Decision Making
Laissez-faire
 leadership philosophy
characterized by an
absence of managerial
decision making.
 Leads to more
negative attitudes and
lower performance.
10-26
Participation in Decision Making
Autocratic leadership
 A form of leadership in which the leader makes
decisions on his or her own and then announces
those decisions to the group
Democratic leadership
 A form of leadership in which the leader solicits
input from subordinates.
10-28
Blake/Moulton Leadership Grid
10-29
Performance and maintenance
behaviors
Ohio State studies found supervisors who were high
on maintenance behaviors (which the researchers
termed consideration) had fewer grievances and less
turnover in their work units than supervisors who were
low on this dimension.
Ohio State studies found the opposite for task
performance behaviors (which the team called
initiating structure). Supervisors high on this dimension
had more grievances and higher turnover rates.
An equally famous research program at the University
of Michigan concluded that the most effective
managers engaged in what they called task-oriented
behavior; planning, scheduling, coordinating, providing
resources, and setting performance goals.
10-30
10-30
The Best Way to Lead
Depends on the Situation
Situational approach
 Leadership perspective proposing that universally
important traits and behaviors do not exist, and
that effective leadership behavior varies from
situation to situation.
 These approaches include:
•
•
•
•
The Vroom model
Fiedler’s Contingency Model
Hersey and Blanchard’s Situational Theory
Path-Goal Theory
10-31
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.
32
10-32
Situational Factors for
Problem Analysis
10-33
The Vroom Model of Leadership
Vroom model
Exhibit 10.4
 A situational model
that focuses on the
participative
dimension of
leadership.
 Decision Styles:
•
•
•
•
•
Decide
One-on-one consultation
Consult the group
Facilitate
Delegate
10-34
Vroom’s Leader Decision Styles
Exhibit 10.5
10-35
Decision Styles
Leader accepts any decision
supported by the entire group
Leader solves the problem
or makes the decision
AI
Solve the
problem
Yourself
Autocratic
AII
Obtain
information.
Select a
solution
yourself.
CI
CII
GII
Share problem,
get ideas from
individuals.
Select a
solution
yourself.
Share problem
with group,
get ideas.
Make decision,
which may or
may not reflect
input.
Share problem
with group.
Together tries
to reach a
solution.
Leader acts as
facilitator.
Consultative
Group
36
Fiedler’s Contingency Model
Fiedler’s contingency model of leadership
effectiveness
 A situational approach to leadership postulating
that effectiveness depends on the personal style
of the leader and the degree to which the
situation gives the leader power, control, and
influence over the situation.
10-37
Fiedler’s Contingency Model
Task-motivated
Relationship-
leadership
motivated leadership
 Leadership that places
primary emphasis on
completing a task.
 Leadership that
places primary
emphasis on
maintaining good
interpersonal
relationships.
10-38
Putting Leaders in the Right Situation Fiedler’s
Contingency Theory
In order to maximize work group
performance, leaders must be matched to the
right leadership situation.
Basic assumptions of Fiedler’s theory
 Leaders are effective when the work groups they
lead perform well.
• So instead of judging leader effectiveness by what a
leader does (i.e., initiating structure and consideration)
or who the leader is (i.e., trait theory), Fiedler assesses
leaders by the conduct and performance of the people
39
they supervise.
10-39
Fiedler’s Contingency Theory
 Leaders are generally unable to change
their leadership styles
 leaders will be more effective when their
leadership styles are matched to the proper
situation.
 The favorableness of a situation for a
leader depends on the degree to which
the situation permits the leader to
influence the behavior of group members.
40
10-40
Fiedler’s Contingency Theory
Situational
Favorableness
Group
Performance
=
Leadership
Style
To maximize work group performance, leaders must be matched
to the right leadership situation.
41
Leadership Style:
Least Preferred Coworker
• Leadership style is the way a leader generally behaves
toward followers.
• Assumes that leadership styles are tied to leader’s
underlying needs and personality
• Since personality and needs are relative stable, then
leaders are generally incapable of changing leadership
styles.
• The way leaders treat people is probably the way they’ve
always treated others.
 Yell, scream and blame others, or do they listen and quietly
correct mistakes.
3.1
• Style is measured by the Least Preferred Co-worker scale
(LPC)
 relationship-oriented
 task-oriented
42
Leadership Style:
Least Preferred Coworker Scale
3.1
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.
43
Situational Favorableness
Situational Favorableness
Assumes that leaders will be more effective
when their leadership styles are matched to the
proper situation.
Situational Favorableness is 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
44
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
45
10-45
Fiedler’s Analysis of Situations
10-46
Hersey and Blanchard’s
Situational Theory
Hersey and Blanchard’s situational theory
 A life-cycle theory of leadership postulating that a
manager should consider an employee’s
psychological and job maturity before deciding
whether task performance or maintenance
behaviors are more important.
10-47
Worker Readiness
• The ability and willingness to take responsibility
for directing one’s behavior at work
• Components of worker readiness:
 Job maturity
 Psychological maturity
48
Hersey and Blanchard’s
Situational Theory
Job maturity
 The level of the
employee’s skills and
technical knowledge
relative to the task
being performed.
Psychological
maturity
 An employee’s selfconfidence and selfrespect.
10-49
Worker Readiness
R4
confident
willing
able
R3
insecure
not willing
able
R2
confident
willing
not able
R1
insecure
not able
not willing
Beyond the Book
50
Beyond the Book
Leadership Styles
Telling
(R1)
high task behavior
low relationship behavior
Selling
(R2)
high task behavior
high relationship behavior
Participating
(R3)
low task behavior
high relationship behavior
Delegating
(R4)
low task behavior
low relationship behavior
51
Path-Goal Theory
Path-goal theory
 A theory that concerns how leaders influence
subordinates’ perceptions of their work goals and
the paths they follow toward attainment of those
goals.
10-52
The Path-Goal Framework
10-53
Path-Goal Theory
Subordinate Contingencies
•Perceived Ability
•Locus of Control
•Experience
Leadership Styles
•Directive
•Supportive
•Participative
•Achievement-Oriented
Outcomes
•Subordinate satisfaction
•Subordinate performance
Environmental Contingencies
4
•Task Structure
•Formal Authority System
•Primary Work Group
54
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.
55
10-55
Subordinate and
Environmental Contingencies
Subordinate
Environmental
 Perceived ability
 Task structure
 Locus of control
 internal
 Formal authority
system
 external
 Primary work group
 Experience
56
Subordinates Contingencies
•
•
Perceived ability
• how much ability subordinates believe they have
for doing their jobs well.
Locus of control
• a personality measure that indicates the extent to
which people believe that they have control over
what happens to them in life.
• Internals believe that what happens to them, good or
bad, is largely a result of their choices and actions.
• Externals, on the other hand, believe that what happens
to them is caused by external forces outside of their
control
• Experience
57
10-57
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.
10-58
Path Goal Theory:
When to Use Leadership Styles










Directive Leadership
Unstructured tasks
Inexperienced workers
Workers with low perceived ability
Workers with external locus of
control
Unclear formal authority system




Supportive Leadership
Structured, simple, repetitive
tasks
Stressful, frustrating tasks
When workers lack confidence
Clear formal authority system
Achievement-Oriented Leadership
Participative Leadership
 Unchallenging tasks
Experienced workers
Workers with high perceived ability
Workers with internal locus of
control
Workers not satisfied with rewards
Complex tasks
4.2
59
Substitutes for Leadership
Substitutes for
leadership
 Factors in the
workplace that can
exert the same
influence on
employees as leaders
would provide.
10-60
Leadership Substitutes
and Neutralizers
Characteristic
Subordinate Characteristics
 Ability, experience, training, knowledge
 Need for independence
 Professional orientation
 Indifference toward organizational rewards
Task Characteristics
 Unambiguous and routine tasks
 Performance feedback provided by the
work itself
 Intrinsically satisfying work
Organizational Characteristics
 Formalization, meaning specific plans,
goals, and areas of responsibility
 Inflexibility, meaning rigid, unbending rules
and procedures
 Highly specified staff functions
 Cohesive work groups
 Organizational rewards beyond a leader's
control
 Spatial distance between supervisors and
subordinates
People-Related
Leadership Behaviors
Task-Related
Leadership Behaviors
Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Substitute, Neutralize
Neutralize
No effect
No effect
Substitute, Neutralize
Substitute, Neutralize
Substitute, Neutralize
Neutralize
No effect
Neutralize
No effect
Neutralize
No effect
Substitute, Neutralize
Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Neutralize
Neutralize
61
10-61
Contemporary Perspectives on
Leadership
Charismatic leader
 A person who is dominant, self-confident,
convinced of the moral righteousness of his
beliefs, and able to arouse a sense of excitement
and adventure in followers.
10-62
Contemporary Perspectives on
Leadership
Transformational leader
 A leader who motivates people to transcend their
personal interests for the good of the group.
 Transformational leaders move beyond the more
traditional transactional approach to leadership.
 Transactional leaders
• manage through transactions, using their legitimate,
reward, and coercive powers to give commands and
exchange rewards for services rendered.
• Are normally dispassionate; do not excite, transform,
empower or inspire.
• However, may be more effective for individualists
10-63
Contemporary Perspectives on
Leadership
Skills that contribute to transformational
leadership:
 Have a vision
 Communicate their vision
 Build trust
 Have positive self-regard
10-64
10-64
Contemporary Perspectives on
Leadership
Level 5 leadership
 A combination of strong professional will
(determination) and humility that builds enduring
greatness.
 Level 5 leaders exhibit both transformational and
transactional skills
10-65
Authentic Leadership Adds
An Ethical Dimension
 Authentic leadership
 A style in which the
leader is true to himself
or herself while leading
 Care about public
interests(community,
organizational) not just
their own
 Willing to sacrifice own
interests for others
 Ethically mature
Pseudotransformational
leaders
 Leaders who talk
about positive change
but allow their selfinterest to take
precedence over
followers’ needs
10-66
Today’s Organizations Offer
Many Opportunities to Lead
Servant-leader
 A leader who serves
others’ needs while
strengthening the
organization.
Bridge leaders
 A leader who bridges
conflicting value
systems or different
cultures.
10-67
Today’s Organizations Offer
Many Opportunities to Lead
Shared leadership
 Rotating leadership, in
which people rotate
through the
leadership role based
on which person has
the most relevant
skills at a particular
time.
Lateral leadership
 Style in which
colleagues at the
same hierarchical
level are invited to
collaborate and
facilitate joint
problem solving.
10-68
Good Leaders Need Courage
See things as they are and face them headon, making no excuses and harboring no
wishful illusions.
Say what needs to be said to those who need
to hear it.
Persist despite resistance, criticism, abuse,
and setbacks
10-69
http://bevideos.mhhe.com/business/video_li
brary/0077424611/swf/Clip_16.html
10-70
10-70
Video: Japan CEO
Why does the CEO of Japan Airlines take a
bus to work?
What style of leadership does, CEO Naruka
Nishimatsu, exhibit to his employees?
10-71