Business Administration
Chapter 12 – Leadership
Study Guide
1. Explain the difference between a manager and a leader.
a. Managers: Ask “How to do something better”, have a short-term view,
and are more concerned with the “HOW”.
b. Leaders: Ask “What should we be doing?”, have a long-term view, and
are more concerned with the “WHAT”
2. What do leaders focus on? Vision, Mission, Goals, Objectives
3. What do managers focus on? Productivity and Efficiency
4. Which of the two have a short-term view and which has a long term view?
a. Managers: short-term
b. Leaders: long-term
5. Who is concerned with doing the right thing?
a. Leaders
6. Who is concerned with doing things right?
a. Managers
7. List and explain the 4 types of Power.
a. Position: comes from the title you hold in an organization
b. Reward: based on the ability to control rewards and punishments
c. Expert: given to people because of their superior knowledge
d. Identity: given to people because other identify with want to be
accepted by them.
8. Which of these two are related to leadership?
a. Expert and Identity
9. Describe the difference between leadership traits and leadership behaviors.
a. Traits are a set of characteristics that most leaders have
b. Behaviors are leaders taking action. They can do this through
initiating structure and/or showing a concern for others.
10. List and explain the two leadership behaviors.
a. Structure: concern for production, set goals, sets deadlines, assigns
tasks
b. Consideration: concern for people, friendly, approachable, supportive
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11. Review and have a good understanding of the Blake/Mouton Leadership Grid.
12. List the three major situational approaches to leadership.
a. Fielder’s Contingency Theory
b. Path-Goal Theory
c. Normative Decision Theory
13. Explain Fiedler’s Contingency Theory.
a. Leaders must be matched to the situation, they are incapable of
changing leadership styles.
14. Explain the Path-Goal Theory.
a. Clear a path for employees to reach goals (remove any obstacles that
may be in the way)
b. Provide/Increase rewards for employees that reach the goals
c. Leadership Styles
i. Directive: Create specific guidelines for tasks, rules,
regulations, employees know exactly what is expected of them.
ii. Supportive: Approachable and friendly, employees are equals,
results in employee satisfaction.
iii. Participative: Consult employees for suggestions and input,
employees become more committed to the business.
iv. Achievement-Oriented: Set challenging goals, have high
expectations of employees
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15. List and explain the 4 leadership styles under the Path-Goal Theory.
a. See above
16. Explain the Normative Decision Theory.
a. A decision tree or model that, when followed, determines how much
employee involvement should be made when making decisions
17. Define strategic leadership.
a. Ability to anticipate, envision, maintain flexibility, think strategically,
and work with other to initiate changes for a pleasant future.
18. Define visionary leadership.
a. Creates a pleasant image for the future through motivating employees
and providing direction for planning
19. List the two kinds of visionary leadership discussed in this chapter.
a. Charismatic: creates strong relationships with followers (employees),
articulate a clear vision, model values, high expectations
b. Transformational: Generates awareness, acceptance, and purpose of
mission, gets employees to see beyond their own needs for the good of
the group, gets others to accomplish more than they intended and
even thought was possible.
20. Identify the differences between charismatic and transformational leaders.
a. See Above
21. Explain the difference between ethical vs. unethical charismatics.
a. Ethical: model moral standards, share information, provide
opportunities
b. Unethical: control and manipulate followers to do what is best for
themselves instead of the organization.
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