Chapter 7
Leading Effectively
The Challenge of Leadership
• Steve Jobs has been called “a classic comeback kid” and “the
Lazarus of the PC world.” Jobs and his friend, Steve Wozniak,
founded Apple Computer in Jobs’ father’s garage in the 1970s.
• Jobs had a passionate vision, but had no management training, no
business skills, and his style wasn’t suited to building a stable
corporation; he was ousted from Apple in 1985, his reputation
apparently forever tarnished.
• Since then, Jobs founded NeXT, bought Pixar Animation Studies Steve Jobs
and made it a powerhouse, and is again CEO of Apple. Some still
wonder if Jobs is what Apple needs now.
• The realization that some leaders -- like Steve Jobs -- have
bounced back and forth between success and failure illustrates the
difficulty of defining what makes a leader successful.
What is Leadership?
Leadership is the ability to
influence others toward the
achievement of goals
Leadership and Management
• Leadership may sound like another name for management, but the
terms are generally viewed as distinct.
• Management aims to give consistency and order to organizations;
leadership seeks to provide constructive and adaptive change.
• Management is directed toward coordinating activities in order to
get the job done; leadership is concerned with the process of
developing mutual purposes.
• Management relies more on a one-way authority relationship, while
leadership relies more on a multidirectional influence relationship.
• “Managers are people who do things right and leaders are people
who do the right things.”
The Changing Look of Leadership
(Figure 7-1)
“Old Look”
“New Look”
Traits
Behaviors
Universal
Situational
One-Way Influence
Reciprocal Influence
Uniform
Dyadic
Leading Subordinates
Leading Everyone
Transactional
Transformational
Emerging Perspectives on Leadership
• While early leadership approaches emphasized the traits of
successful leaders -- who they are -- newer approaches ask how
successful leaders behave -- what they do.
• Early approaches to leadership tended to take a universalistic
perspective, asking, “What works?” Newer approaches,
recognizing that characteristics of the situation, such as followers’
needs and skills and various aspects of the task must be
considered, ask, “What works when?”
• Early approaches considered primarily one-way influence, how a
leader influences followers. Newer approaches recognize that the
influence process is reciprocal -- just as leaders are influencing
followers, followers are influencing leaders.
Emerging Perspectives on Leadership
(Continued)
• While early approaches tended to assume that leaders treat their
various followers in similar ways, more recent approaches
recognize that leaders may -- for good or bad reasons -- treat
different followers differently.
• While leadership approaches initially focused on the relationship
of leaders to their subordinates, modern views are more inclusive;
the “others” whom leaders influence may sometimes be team
members or even hierarchical superiors.
• Most early approaches to leadership tended to consider how a
leader might influence others through a series of transactions.
Newer approaches look more broadly at how leaders take actions
to transform followers and organizations.
Lighten Up: The Link to Links
• A recent study of golfing and leader effectiveness conducted
by the New York Times compared golf handicaps of corporate
heads to their companies’ stock market performance over
three years.
• The lower (better) the leader’s golf handicap, the better his or
her company’s performance.
• Perhaps natural leaders also tend to be natural athletes.
• Perhaps perseverance and high need for achievement pay off
in both golf and business.
• Perhaps early life experiences -- such as caddying for
executives -- build business skills while providing exposure to
business banter.
Web Wise: The 20 Most Influential
Leaders of the 20th Century
• With the coming of the new millennium,
Time magazine selected and profiled “100
remarkable people … who -- for better or
worse -- most influenced the last 100
years.”
• They were considered in their fields of
endeavor. For the profiles of the 20 most
influential leaders and revolutionaries, go
to:
• http://www.time.com/time/time100/
Leader Traits
• The earliest approach to the study of leadership was to try to identify
characteristics, or traits, of successful leaders.
• Literally thousands of studies have now explored leadership traits.
• Of the traits, activity, intelligence, knowledge, dominance, and selfconfidence are most often found to be linked to leader success.
• Unfortunately, most reviews of studies relating to leadership traits have
concluded that the trait approach has not been fruitful.
• Very few traits show up consistently across studies.
• Also, since traits are relatively stable, it is unlikely that leaders can develop
them through training.
• So, attention has shifted from what successful leaders are to what they do.
Leaders aren’t born, they
are made. And they are
made just like anything
else, through hard work.”-Vince Lombardi
Developing and Using Power Bases
• We defined leadership as the ability to influence others
toward the achievement of goals.
• But what exactly is influence?
• How does influence relate to things such as authority,
power, and control?
• How does a leader gain the ability to influence?
Defining Terms
• Authority: The right to influence (that is, exert force on)
others. It is conferred by the organization.
• Power: The ability to influence others. People in organizations
may have power without authority, and authority without
power.
• Influence: The exertion of force on others. Influence is power
put into action; power is latent influence.
• Control: The exertion of enough force to change others’
behaviors. We may have a lot of power and exert a lot of
influence without getting people to do what we want.
The Nature of Power
• Latent. Power is something that people have and may or may not choose
to use. It is a weapon or tool; it may never be used, and just having it may
makes its use unnecessary.
• Relative. The power one person has over another depends largely on
things such as the expertise of one person relative to another and the
hierarchical level of one relative to the other; a manager may have
considerable power relative to one person and little or none relative to
another.
• Perceived. Power is based on one person’s belief that another has certain
characteristics. If I believe you have power over me, you’ve got it!
• Dynamic. Power relationships evolve over time as individuals gain or
lose certain types of power relative to others.
Uses of Power
• Power over: This is power used to make another
person act in a certain way; it may be called
dominance.
• Power to: This is power that gives others the
means to act more freely themselves; it is
sometimes called empowerment.
• Power from: This is power that protects us from
the power of others; it may be called resistance.
Forms of Compliance to Power
• Coercive power involves forcing someone to
comply with our wishes.
• With utilitarian power, compliance results from
desires for rewards.
• Normative power rests on the employees’ belief
that the organization has the right to govern their
behavior.
Bases of Power
• If we’re going to use power, we first have to get it.
• Traditionally, a distinction has been made between how
people get power (termed interpersonal power bases)
and how organizational subunits get power (termed
subunit power bases).
• We’ll retain this distinction for now. However, the
distinction is murky: people may use the so-called
subunit power bases, and groups or subunits may use the
so-called interpersonal power bases.
Interpersonal Power Bases
 Legitimate: Based on one person’s belief that it is legitimate,
or right, for another to give orders or otherwise exert force.
 Reward: Based on one person’s perception that another can
influence the rewards s/he receives.
 Coercive: Based on one person’s perception that another can
influence the punishments s/he receives.
 Referent: Based on a feeling of identity, or oneness, that one
person has for another, or the desire for such identity.
 Expert: Based on one person’s perception that another has
needed expertise in a given area.
Interaction of Bases of Power
COERCIVE
POWER
REFERENT
POWER
REWARD
POWER
EXPERT
POWER
LEGIT.
POWER
Guidelines for Ethically Attaining and Using
Interpersonal Power (From Figure 7-2)
Base of
Sample Guidelines
Power
Legitimate Make clear requests and check for comprehension.
Follow proper channels.
Reward
Provide an attractive incentive.
Make it clear that you can deliver on promises.
Coercive
Inform subordinates about rules and penalties for
violations.
Administer discipline consistently and promptly.
Referent
Treat each subordinate fairly.
Show you would be personally pleased if the
subordinate carried out the request for you.
Expert
Keep informed.
Avoid threatening subordinates' self-esteem.
Resource Dependence Approach
• One source of subunit power is the ability to
control the supply of important resources required
by other subunits.
• According to the resource dependence
approach, those subunits that obtain the most
critical and hard-to-get resources acquire the most
power because of the dependencies that are
developed.
Strategic Contingencies Approach
According to the strategic contingencies approach, a unit’s
power is based on three things:
• The ability to cope with uncertainty.
• Centrality in the flow of information and work between units.
Units are more central if they have an immediate effect on the
organization or an impact on most other units.
• Nonsubstitutability. The harder it is for another unit to
perform the activities of this unit, the more power this unit
has.
The Strategic Contingencies Model
(Figure 7-3)
Ability to
Reduce
Uncertainty
Organizational
Centrality
Subunit
Power
Degree to Which
Activities are
Nonsubstitutable
Signs of Power
Some signs of power include the abilities to:
• intercede favorably on behalf of someone in trouble
• get a good placement for a subordinate
• get approval for expenditures beyond the budget
• get above-average salary increases for subordinates
• get items on the agenda at policy meetings
• get fast access to top decision makers
• get regular, frequent access to top decision makers
• get early information about decisions and policy shifts
Global Perspectives:
Signs of Power in Japan
• Signs of power may vary from one nation to another.
• For example, in Japanese organizations the appearance
of equality is an important cultural value.
• Because of this, salary, rank, and office space may
have little to do with power.
• Instead, power can be gauged by studying patterns of
interaction.
• Power flows from expertise, and those with power can
be identified because others consult with them.
Social Influence Approaches
• Social influence is the use of power in social relationships.
• People use a remarkable variety of tactics when attempting to
influence others.
• Managers like to use participation, rational persuasion, and
inspirational appeals to influence others.
• Tactics such as use of pressure and formation of coalitions are
less popular.
• Promising something in return for compliance is an influence
tactic of last resort; it’s costly and may create expectations that
there will always be rewards for compliance.
Social Influence Tactics
(Figure 7-4)
Rank Tactic
Description
1
Consultation
2
Rational
Persuasion
Inspirational
Appeals
Seeking participation in making or planning
implementation of a decision.
Using logical arguments and facts to persuade another.
3
4
5
6
7
8
Ingratiating
Tactics
Coalition
Tactics
Pressure
Tactics
Upward
Appeals
Exchange
Tactics
Making an emotional request or proposal that arouses
enthusiasm by appealing to values and ideals or
increasing confidence.
Seeking to get someone in a good mood or to like you
before asking for something.
Seeking the aid of others to persuade someone, or
using he support of others as an argument for
agreement.
Using demands, threats, or intimidation to get
compliance.
Seeking to persuade someone that the request is
approved by higher levels, or appealing to higher levels
for help in getting compliance.
Promising some rewards or benefits in exchange for
compliance.
Rational Persuasion
• One way to get what you want is to make a compelling, persuasive
argument.
• Persuasive communicators are well liked and eloquent and have
high credibility.
• They gain credibility by their apparent expertise and by giving the
impression that their motives are honorable.
• Persuasive messages are clear and are moderately inconsistent with
the message receiver’s attitudes; a message that is entirely consistent
with the receiver’s attitudes makes no difference, while a message
that is totally inconsistent is likely to be rejected out of hand.
Liking and Ingratiation
• We’re more willing to do something for people we like.
• Liking may be based on such things as:
–
–
–
–
–
physical attractiveness
compliments and flattery
contact and cooperation
association with other positive things
social similarity
• Because people like others who are similar to them, there
may be resulting, unconscious bias against people who
are different.
Emotional Appeals
• Friendly emotions are a useful influence approach.
• Negative or unpleasant emotions can also be tools
of social influence, especially when the person
displaying the emotions has more power than the
target of the influence.
• Emotional contrast can be helpful; the presence of
a nasty person makes a warm and friendly person
seem even warmer and friendlier, and makes
compliance with this person’s requests more
likely.
Social Proof
• Another way to get people to take some action is
by convincing them that others are taking the
same action; this is called social proof.
• The fact that others are doing something suggests
that it is appropriate and socially acceptable.
• Bartenders who salt tip jars with a few dollar bills
at the beginning of the evening and producers of
charity telethons who spend much of their time
listing viewers who have already contributed are
exploiting social proof.
Choosing from Among Social Influence
Approaches
• People prefer some influence approaches, such as participation, to
others, such as promising something in return for compliance.
• People also select influence approaches to fit the situation.
• Individuals responding to authoritarian managers tend to use
approaches such as blocking and ingratiation, while those responding
to participative managers are more likely to rely on rational
persuasion.
• Employees also use different influence approaches with their
superiors depending on the goals they are seeking. When they are
trying to secure personal benefits they tend to use ingratiation, and
when they are trying to secure organizational goals they use a broader
array of influence tactics.
Social Influence and Type of Involvement
• Compliance occurs when people do something
because they don’t want to bear the costs of not
doing it.
• Identification results when influence flows from
a person’s attractiveness.
• Internalization takes place when we do
something because we believe it is “the right
thing to do.”
Web Wise: Native American Leaders
• The website of the Indigenous Peoples’
Literature includes profiles of many native
American great chiefs and leaders. The
profiles provide rich insights into the wide
range of traits, behaviors, and motivations
of those leaders.
• http://www.indians.org/welker/leaders.htm
Black Elk
Washakie
Sitting Bull
Autocratic and Democratic Styles
(Figure 7-5)
Lower
Autocratic
Degree of Participation
Autocratic
Democratic
Autocratic and Democratic Styles
• Autocratic leaders make decisions themselves, without inputs
from subordinates. Democratic leaders let subordinates
participate in decision making.
• Democratic style is consistently linked to higher levels of
subordinate satisfaction.
• Democratic style is usually positively, but weakly, related to
productivity.
• This weak link of democratic style to performance may be because
many factors determine whether a democratic style is appropriate,
including the nature of the tasks and the characteristics of
subordinates.
Autocratic and Democratic Styles
(Continued)
• When tasks are simple and repetitive, participation has little effect,
because “there is little to participate about.”
• When subordinates are intelligent and desire independence, participation
is especially important.
• Participation is empowering and satisfying, and it generates enthusiasm
for the decisions that are reached.
• Participation takes time, and people sometimes don’t like to participate,
especially if they care little about the decision.
• Since leaders may give more productive followers more responsibility,
the relationship between democratic style and performance could be due
to the impact of performance on style rather than vice versa.
Consideration and Initiating Structure
• Effective leaders show concern for both the task and the people
they leader. Without concern for task, the job won’t get done.
Without concern for people, satisfaction, motivation, and team
spirit will suffer and performance will ultimately suffer.
• Two sets of leader behaviors -- consideration and initiating
structure -- address these concerns.
• Consideration and initiating structure are not conflicting sets of
behaviors. Skillful leaders should be able to exhibit both sets
of behaviors, and they should use those behaviors as needed.
Consideration and Initiating Structure
(Continued)
• Consideration is behavior that shows friendship, mutual
trust, respect, and warmth. Considerate leaders are friendly
and approachable, look out for the personal welfare of team
members, back up the members in their actions, and find
time to listen to them.
• Initiating structure is behavior that helps clarify the task
and get the job done. Initiating leaders provide definite
standards of performance, set goals, organize work,
emphasize meeting deadlines, and coordinate the work of
team members.
Sample Items To Measure Consideration
and Initiating Structure
Consideration
Initiating Structure
• Treats all work unit members
as his or her equal
• Is friendly and approachable
• Does little things to make work
pleasant
• Puts suggestions made by the
work unit into operation
• Looks out for personal welfare
of work unit members
• Lets work unit members know
what is expected of them
• Schedules the work to be done
• Encourages the use of uniform
procedures
• Assigns work unit members to
particular tasks
• Makes his or her attitudes
clear to the group
Consideration and Initiating Structure
(Figure 7-6)
Consideration
High
Low
Initiating Structure
Low
High
Focus on Management: Recycling People
at Omni Computer Products
• Gerald Chamales is founder, President, and CEO of Omni Computer
Products.
• Chamales provides an example of a leader who cares about his
employees as well as profit.
• A college dropout and recovering drug and alcohol abuser who spent
six months in a psychiatric facility and then bottomed out as a
homeless youth 25 years ago, Chamales now recycles both people
and laser cartridges.
• A full third of his 250 employees, including managers, are drawn
from the welfare rolls and halfway houses of Los Angeles.
• Chamales demands that those with drug or alcohol problems have 30
days of sobriety in a treatment program, and he then gives them
training, motivational seminars, mentoring, and even loans.
Lighten Up: Bosses from Hell
• In his Dilbert cartoons, Scott Adams lambastes “pointy-headed” bosses
who are amazingly insensitive, unqualified, vindictive, fail to deliver
on promises, or are simply clueless.
• Here are some actual bad bosses from”best boss/worst boss” contests:
– An elderly engineer passed away at his desk at approximately 3
o’clock. The boss told office workers not to call 911 until 5 o’clock
because it would disrupt the routine and be unproductive.
– A boss told a programmer, “Give me a list of the unknown bugs in
this system.”
– A supervisor for a Fortune 500 chemical manufacturer would
announce at 3 p.m. that he was leaving early, say his good nights,
and leave, only to sneak up the back stairway to hide in the supply
closet with the lights off to spy on employees for two hours.
Path-Goal Theory
• The theory is called path-goal because its major concern
is how the leader influences the followers’ perceptions of
their work goals, personal goals, and paths to goal
attainment.
• The theory suggests that a leader’s behavior is motivating
or satisfying to the degree that the behavior increases
follower goal attainment and clarifies the paths to these
goals.
Leader Motivational Functions
in Path-Goal Theory
• The leader can increase valences associated with
work-goal attainment.
• The leader can increase instrumentalities of workgoal attainment for the acquisition of personal
outcomes.
• The leader can increase the expectancy that effort
will result in work-goal attainment.
Some Contingency Factors in the Path-Goal
Theory
• Some task contingency variables:
– degree of structure
– degree to which the task is intrinsically satisfying
– degree to which the task provides feedback concerning
accomplishment
• Some follower contingency variables:
– need for independence
– ability, experience, training
– “professional” orientation
Elements of Path-Goal Theory
(Figure 7-7)
Subordinate
Characteristics
Leader Behaviors:
• Directive
• Supportive
• Participative
• AchievementOriented
• Clarification of
Paths to Goals
• Increased Goal
Attainment
Task
Characteristics
Subordinate
Responses:
• Motivation
• Performance
• Satisfaction
The Bottom Line:
Applying Path-Goal Theory
Assess the
Situation
Identify Task
and Employee
Needs
Match
Appropriate
Leader
Behavior to the
Situation
If This Does Not
Work, Replace
the Leader
If This Does Not
Work, Train the
Leader to Change
His/Her
Behavior
Change
Leader
Behavior If It
Does Not Match
the Situation
Some Leadership Substitutes and Neutralizers
(From Figure 7-8)
SUBSTITUTE OR NEUTRALIZER ROLES
Relationship-Oriented,
Task-Oriented,
Supportive, Considerate
Directive, Structuring
Leadership
Leadership
Characteristic of Subordinate
Ability, experience,
training, knowledge
Need for independence
Characteristic of Task
Unambiguous and routine
Intrinsically satisfying
Characteristic of Organization
Formalization
Cohesive work groups
Organizational rewards
not within leader's control
Neutralizer
Substitute
Neutralizer
Substitute
Substitute
Substitute
Substitute
Substitute
Neutralizer
Neutralizer
Web Wise: Big Dog’s Leadership Page
• Big Dog’s Leadership Page is part of the
website called Big Dog’s Bowl of
Biscuits.
• The Bowl of Biscuits site contains
information on training, leadership, and
performance, as well as Big Dog’s
Library and other information.
• The Leadership Page provides
information “for new supervisors,
managers, leads, and anyone wishing to
move up through the ranks as a leader.”
http://www.nwlink.com/donclark/leader/leader.html
The Bottom Line: Managing Substitutes
and Neutralizers of Leadership
Identify
Substitutes for
Leadership
Recognize That
Leader Behaviors
for Which
Substitutes Exist
May Not Be Needed
Implement
Leadership
Strategies
Identify
Neutralizers of
Leadership
Develop
Strategies to
Overcome
Neutralizers of
Leadership
Leader-Member Exchange Theory
• According to leader-member exchange theory, leaders establish a one-on-one
relationship with each follower. These relationships vary in terms of the quality
of the exchange.
• Some followers -- members of the in-group -- have a high-quality relationship
with the leader, characterized by mutual trust, liking, and respect. They enjoy
the confidence of the leader, are given interesting and challenging assignments,
and in turn they work hard, are loyal, and support the leader.
• Other followers -- the out-group -- have a lower quality relationship with the
leader. The leader tends to see them as lacking motivation or competence or
loyalty, interacts with them less, and offers them fewer chances to demonstrate
their capabilities.
• Out-group members may “live down” to the leader’s expectations, carrying out
the tasks defined in their formal job descriptions and facing no real expectations
of loyalty, creativity, or high performance.
Leader-Member Exchange Theory
(Continued)
• Followers may sometimes find themselves as members of out-groups due less
to their abilities and potential than to favoritism, stereotypes, and personal
conflicts.
• In an ideal world their would be no in-groups and out-groups. In the real
world, in-groups and out-groups are common and perhaps cannot be avoided.
• Leaders must do all they can to ensure that in-group membership is based on
ability and motivation rather than favoritism and prejudice.
• They must also ensure that followers can move between the groups, having
access to in-group membership when it is earned and falling from such status
when it is no longer justified.
• The most recent focus of leader-member exchange theory is on the process of
leadership making, which develops over time in three phases.
Leader-Member Exchange Model
(Figure 7-9)
S
S
In-Group
SA
Out-Group
Leader
SE
SB
SC
S
S
SD
S
S
S
S
S
S
Subordinate
The Bottom Line: Applying the
Leader-Member Exchange Model
List the
Employees in
Your Work
Unit
Identify Employees
Who You Feel
Are Part of
the “In-Group”
Implement
Leadership
Strategies
Identify Leaders
Who You Feel
Are Part of
the “Out-Group”
Develop Leadership
Strategies for Moving
Employees from
the “Out-Group”
to the “In-Group”
Phases in Leadership Making
(Figure 7-10)
Stranger
Acquaintance
Partner
ROLE
Scripted
Tested
Negotiated
INFLUENCES
One-Way
Mixed
Reciprocal
EXCHANGES
Low Quality
Medium Quality
High Quality
INTERESTS
Self
Self/Other
Group
Time
Types of Leadership
• Transactional Leadership: Leadership based on
transactions or exchanges -- the promise, and provision, of rewards
for good performance and threats or discipline for poor
performance.
• Transformational Leadership: Leadership which
transforms followers and organizations by:
– broadening and elevating the interests of employees
– generating awareness and acceptance of the purposes and
missions of the group
– stirring employees to look beyond their own self interest for the
good of the group
“It is time for a new
generation of leadership,
to cope with new problems
and new opportunities.
For there is a new world to
be won.” -- John F.
Kennedy
Elements of Transformational Leadership
ATTRIBUTED
CHARISMA
INDIVIDUALIZED
CONSIDERATION
IDEALIZED
INFLUENCE
TRANSFORMATIONAL
LEADERSHIP
INTELLECTUAL
STIMULATION
INSPIRATIONAL
LEADERSHIP
Transformational Leader Behaviors
• Attributed charisma. Charisma is a Greek word meaning
“Divinely inspired gift.” Leaders are seen as charismatic when they
display a sense of power and confidence, remain calm during crisis
situations, and provide reassurance that obstacles can be overcome.
• Idealized influence. Leaders display idealized influence when they
talk about their important values and beliefs; consider the moral and
ethical consequences of their decisions; display conviction in their
ideals, beliefs, and values; and model values in their actions.
• Intellectual stimulation. Intellectually stimulating leaders help
followers recognize problems and find ways to solve them. They
encourage followers to challenge the status quo. They champion
change and foster creative deviance.
Transformational Leader Behaviors
(Continued)
• Inspirational leadership. Inspirational leaders give
followers hope, energizing them to pursue a vision. They
envision exciting new possibilities, talk optimistically
about the future, express confidence that goals can be
met, and articulate a compelling vision of the future.
• Individualized consideration. Transformational leaders
show personal interest and concern in their individual
followers, and they promote their followers’ selfdevelopment. They coach their followers, serve as their
mentors, and focus them on developing their strengths.
“A leader is a dealer
in hope.” -Napoleon Bonaparte
“Keep away from people
who try to belittle your
ambitions. Small people
always do that, but the
really great make you feel
that you, too, can become
great.” -- Mark Twain
“The great law of
culture is: Let each
become all that he was
capable of being.” -Thomas Carlyle
Skills Associated with Transformational
Leadership
ANTICIPATORY
SKILLS
SELFUNDERSTANDING
SKILLS
VISIONING
SKILLS
TRANSFORMATIONAL
LEADERSHIP
EMPOWERMENT
SKILLS
VALUECONGRUENCE
SKILLS
Skills Associated with Transformational
Leadership
• Anticipatory Skills -- The ability to intuitively and systematically
scan the changing environment.
• Visioning Skills -- The process of persuasion and example by which
an individual or leadership team induces a group to take action that
is in accord with shared purposes.
• Value-Congruence Skills -- The ability to be in touch with
followers’ needs in order to engage followers on the basis of shared
motives, values, and goals.
• Empowerment Skills -- The ability to effectively share power with
followers.
• Self-Understanding Skills -- Frameworks with which leaders
understand both themselves and their followers.
Focus on Management: Transformational
Leadership at General Electric
• Jack Welch, CEO of General Electric, is a notable
transformational leader.
• “We have found what we believe to be the distilled essence of
competitiveness. It is the reservoir of talent and creativity
and energy that can be found in each of our people. That
essence is liberated when we make people believe that what
they think and do is important -- and then get out of their way
while they do it.”
• Welch describes his successor: “I want somebody with
incredible energy who can excite others, who can define their
visions, who finds change fun and doesn’t get paralyzed by it.
I want somebody who feels comfortable in Delhi or Denver.”
The Bottom Line: Applying
Transformational Leadership Theory
Develop a Mission
That Responds to
Organizational
Challenges or
Opportunities
Articulate This
Mission with
Great Conviction
to Employees
Provide Strong Support
for Employees by
Showing Concern for
Their Needs, Goals,
and General Welfare
Provide
Leadership That
Inspires Employees
to Embrace
the Mission
Empower
Employees to Do
What Is Needed to
Achieve the
Mission
Focus on Management: Rebuilding the
Garage at Hewlett-Packard
• When, in 1999, Carly Fiorina was named the CEO
of Hewlett-Packard, she became the first female
CEO of one of America’s 20 largest corporations
and was ranked by Fortune magazine as the most
powerful woman in American business.
• When Fiorina took over the reins, HP was awash in
question marks, with lackluster performance and a
dearth of innovative offerings.
• Fiorina saw the company as sick and endangered -slow, complacent, and risk averse.
Carly Fiorina
Focus on Management: Rebuilding the
Garage at Hewlett-Packard (Continued)
• Seeking to reinvent HP, Fiorina evoked the original spirit of the company -- it
was started in a garage and rode a history of innovation -- and launched a $200
million brand and advertising campaign that included a logo with the word
“invent.”
• Saying, “Preserve the best, reinvent the rest,” Fiorina has pushed through more
drastic changes in a short period of time than HP has ever seen before.
• She drew up a “rules of the garage” based on how the original HP operated.
Among its mantras are “No politics, no bureaucracy” and “Radical ideas are not
bad ideas.”
• Fiorina has revamped salary structures to tie pay more closely to performance,
reinforced key values, and restructured the company. She is seeking to move
the company to “Internet time.”
The Language of Leadership
• Transformational leaders must be able to inspire;
communicate their vision, ideals and beliefs; provide
compelling reassurance; and challenge followers to think in
new ways.
• To do all this, transformational leaders must be masters of
communication; they must “speak the language of
leadership.”
• Two aspects of the language of leadership -- framing and
rhetorical crafting -- are crucial.
Framing and Rhetorical Crafting
• Framing is presenting the message -- defining the purpose in a
meaningful way.
• Rhetorical crafting is using symbolic language to give emotional power
to the message.
• Two elements of framing are amplifying values -- the process of
identifying and elevating certain values as basic to the overall mission -and belief amplification -- the process of emphasizing factors that
support or impede actions taken to achieve desired values.
• Rhetorical techniques of inspirational leaders include using metaphors,
analogies, and stories, gearing language to the particular audience, and
using speech techniques such as alliteration, repetition, and rhythm.
I Have a Dream
• In his famous “I Have a Dream” speech, Martin
Luther King sculpted a masterpiece of language in
the service of transformational leadership.
• King spoke of values he held dear, envisioned
exciting new possibilities, assured his followers that
they could overcome obstacles, and recognized
followers’ individual needs and perspectives.
• He used words of inclusion, employed many
metaphors, repeated key phrases again and again,
and his voice rose in volume and emotion as the
speech progressed.
Global Perspectives: Women World Leaders
• While there are relatively few female leaders at top
levels in the U.S., Russia, China, and other large
countries, many small developed, developing, and
Third World countries have been pioneers.
• For example, women are serving, or have served in the
recent past, as presidents (or equivalent) in Iceland,
Malta, the Philippines, Haiti, Nicaragua, Ireland, Sri
Lanka, Liberia, Switzerland, Latvia, Panama, Finland,
and elsewhere.
• http://www.terra.es/personal2/monolith/00women.htm
Reflections on Leadership
• Pay careful attention to your formal or informal leadership roles.
• Successful leaders draw on a variety of power bases. Referent
power has the broadest range, and heavy reliance on coercive power
can be dangerous. Control over resources, information, and the
problem-solving process all serve to increase power.
• A a leader must show concern for both task accomplishment and
fulfillment of subordinate needs.
• The same style or behavior may not work in every situation. In
deciding how to behave, consider the maturity and needs of your
subordinates, the structure and other characteristics of the task, and
the nature of the organization.
Reflections on Leadership
(Continued)
• Leadership can be frustrating. Structured tasks, separation of
superiors and subordinates, bureaucratic constraints, and other
factors can sometimes handcuff the leader. Try to be aware of,
and deal with, leadership substitutes and neutralizers.
• As a leader you should not accept situations as fixed. You may be
able to change task structure, your power, relations with
subordinates, and other dimensions.
• The models reviewed in this chapter show that leader sensitivity,
critical thinking, and flexibility are crucial.
• Remember that vision and inspiration are important. Don’t ignore
transformational aspects of the leadership role.