Management
Fifteenth Edition, Global Edition
Chapter 17
Being an Effective Leader
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Learning Objectives
17.1 Define leader and leadership.
17.2 Compare and contrast early theories of leadership.
17.3 Develop your skill at choosing an effective leadership
style.
17.4 Describe contemporary views of leadership.
17.5 Discuss contemporary issues affecting leadership.
17.6 Learn how to prepare for an effective transition to a
leadership position.
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What is your personal definition of a good leader?
Everyone give examples you have come across of
strong and weak leadership. Why you consider him/her
so…?
You can use examples from employment, academic
studies or participation in sports clubs and societies
(keep anonymous)
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Who Are Leaders and What is Leadership?
• Leader: someone who can influence others and who has
managerial authority
• Leadership: a process of influencing a group to achieve
goals
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Why Leaders are Important?
• Leaders set direction, build an inspiring vision for the
future, and develop their team members’ potential. They
initiate action, motivate employees, provide guidance,
create confidence and build employee morale.
• Therefore, Leaders must have strong communication,
delegation and decision-making skills, as well as the ability
to adopt a flexible leadership style.
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“A leader takes people where they want to
go. A great leader takes people where they
don’t necessarily want to go, but ought to
be.” -Rosalynn Carter
Theories of Leadership
The Great Man Theory (1840)
– The Great Man theory evolved
around the mid 19th century.
– It assumes that the traits of
Leadership are natural by born.
That simply means that great
leaders are born and not made.
– This theory sees great leaders as
those who are destined by birth to
become a leader. Furthermore, the
belief was that great leaders will
rise when confronted with the
appropriate situation.
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The Great Man Theory (1840)
• Criticism:
1. The Great Man theory presents several limitations
including the following:
2. It’s based on myths and assumptions with little logic to
back it.
3. It doesn’t consider external environments or situations
that often influence human behavior and attitudes
4. There isn’t any guarantee that a person with all
leadership qualities will eventually become a successful
leader
5. It fails to take into account influence of other factors on
leadership.
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Trait Theories(1920s -1930s)
• Research focused on identifying personal characteristics
that differentiated leaders from non-leaders was
unsuccessful.
• Certain traits shared by leaders that are lacking among
non-leaders.
• Such traits as intelligence, charisma, and courage
• These traits may be genetic or/and acquired
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Exhibit 17.1 Ten Traits Associated with Leadership
Trait
Description
Drive
Leaders exhibit a high effort level. They have a relatively high desire for achievement,
they are ambitious, they have a lot of energy, they are tirelessly persistent in their
activities, and they show initiative.
Desire to
lead
Leaders have a strong desire to influence and lead others. They demonstrate the
willingness to take responsibility.
Honesty
and integrity
Leaders build trusting relationships with followers by being truthful or nondeceitful and
by showing high consistency between word and deed.
Selfconfidence
Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to
show self-confidence in order to convince followers of the rightness of their goals and
decisions.
Intelligence
Leaders need to be intelligent enough to gather, synthesize, and interpret large
amounts of information, and they need to be able to create visions, solve problems, and
make correct decisions.
Job-relevant
knowledge
Effective leaders have a high degree of knowledge about the company, industry, and
technical matters. In-depth knowledge allows leaders to make well-informed decisions
and to understand the implications of those decisions.
Extraversion
Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or
withdrawn.
Proneness
to guilt
Guilt proneness is positively related to leadership effectiveness because it produces a
strong sense of responsibility for others.
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Exhibit 17.1 (cont.) Ten Traits Associated
with Leadership
Trait
Description
Emotional
Intelligence
Empathetic leaders can sense others’ needs, listen to
what followers say (and don’t say), and read the reactions
of others.
Conscientiousness
People who are disciplined and able to keep
commitments have an apparent advantage when it comes
to leadership.
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Trait Theories(1920s -1930s)
• Criticism:
• 1) It proved impossible to identify a set of traits that would
always differentiate a leader (the person) from a non-leader.
• 2) The approach has not fixed a definitive list of leadership
traits and the list that has emerged seems endless.
• 3) The approach has failed to take situations into account.
• 4) There has much subjective interpretation of the meaning
of the data and data is not always based on reliable
research.
• 5) It fails to take into account influence of other factors on
leadership.
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Behavioral theories
Behavioral theories of leadership are based upon the belief that
great leaders are made, not born. Rooted in behaviorism, this
leadership theory focuses on the actions of leaders not on
mental qualities or internal states. According to this theory,
people can learn to become leaders through teaching and
observation
University of Iowa Studies
– Identified three leadership styles
• Autocratic
• Democratic
• Laissez-faire (Free Reign)
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University of Iowa Studies
• Autocratic style: a leader who dictates work methods,
makes unilateral decisions, and limits employee
participation
• Democratic style: a leader who involves employees in
decision making, delegates authority, and uses feedback
as an opportunity for coaching employees
• Laissez-faire style: a leader who lets the group make
decisions and complete the work in whatever way it sees
fit
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University of Iowa Studies (cont.)
• Autocratic style – A leader who dictates work methods, makes unilateral decisions, and
limits employee participation.
• Democratic style – A leader who involves employees in decision-making, delegates
authority, and uses feedback as an opportunity for coaching employees
• Laissez-faire style – A leader who lets the group make decisions and complete the
work in whatever way it sees fit.
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Examples
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Situational Leadership Theory (1960)
the Situational Leadership Model, is a model created
by Paul Hersey and Ken Blanchard
With situational leadership, it is up to the leader to change
his style, not the follower to adapt to the leader’s style. In
situational leadership, the style may change continually to
meet the needs of others in the organization based on the
situation.
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Situational Leadership Theory (1960)
The styles vary according to:
• The amount of guidance and direction (task behavior) a
leader gives
• The amount of socioemotional support (relationship
behavior) a leader provides
• The situation that a leader faces and readiness level
(level of competency ) that followers exhibit in performing
a specific task, function, or objective.
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Leadership Contingency Theory (1960)
Situational Leaders learn to demonstrate four core,
common and critical leadership competencies:
• Diagnose: “Understand the situation they are trying to
influence”
• Adapt: “Adjust their behavior in response to the
contingences of the situation”
• Communicate: “Interact with others in a manner they can
understand and accept”
• Advance: “Manage the movement”
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Again
In situational leadership Theory, the style may
change continually to meet the needs of others in
the organization based on the situation and also
according to the followers’ readiness (competence
level) to one of the following styles:
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Leadership Contingency Theory (1960)
• Telling And Directing (low competence)
• In telling/directing, the leader of the organization is
the one making the decisions and informing others
in the organization of the decision. With this style
of leadership, it is a very top-down approach and
the employees simply do exactly what they are
told.
• HIGH TASK – LOW REALTIONSHIP
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Leadership Contingency Theory (1960)
• Selling And Coaching (moderate competence)
• The decisions still ultimately lie with the leader, however,
input is requested from the employees before the decision is
implemented. With this style of situational leadership,
employees are still supervised but it is in more of a coaching
manner rather than a management manner. This style
typically works well with those who are inexperienced and
still learning. It involves direct praise to increase their
confidence and self-esteem.
• HIGH TASK – HIGH REALTIONSHIP
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Leadership Contingency Theory (1960)
Participating And Supporting (Moderately high
Competence)
• The participating and supporting style of situational
leadership passes more responsibility to the employees or
followers. While the leader still provides some direction,
the decisions ultimately lie with the follower. The leader is
there to provide feedback and to increase their confidence
and motivation with praise and feedback for the tasks
completed.
• LOW TASK – HIGH REALTIONSHIP
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Leadership Contingency Theory (1960)
Delegating to Employees (High competence)
• Delegating is the situational leadership style where the leader
is involved the least amount with the employees. The
employees are responsible for choosing the tasks and the
directions they will take. Although the leader may still be
involved for direction or feedback purposes, it is on a much
lower level than with other situational leadership styles. With
this style of leadership, the employees know their role and
perform it with little supervision required.
• LOW TASK – LOW REALTIONSHIP
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Situational Leadership Theory (1960)
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Contemporary Views of Leadership
• Leader-member exchange theory (LMX) –
• the leadership theory that says leaders create ingroups and out-groups and those in the in-group
will have higher performance ratings, less
turnover, and greater job satisfaction.
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17 - 26
Contemporary Views of Leadership
• Leader-member exchange theory (LMX) –
• The goal of LMX theory is to explain the effects of leadership on
members, teams, and organizations. According to the theory,
leaders form strong trust, emotional, and respect-based
relationships with some members of a team, but not with others.
LMX theory claims that leaders do not treat each subordinate the
same. The work-related attitudes and behaviors of those
subordinates depend on how they are treated by their leader.
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17 - 26
Contemporary Views of Leadership
• Charismatic leaders: an enthusiastic, self-confident leader
whose personality and actions influence people to behave in
certain ways.
•
Transactional leaders – Transactional leaders use
disciplinary power and an array of incentives to motivate
employees to perform at their best. The term “transactional”
refers to the fact that this type of leader essentially motivates
subordinates by exchanging rewards for performance.
•
Transformational leaders – A transformational leader goes
beyond managing day-to-day operations and crafts strategies
for taking his company, department or work team to the next
level of performance and success. These leaders set goals
and incentives to push their subordinates to higher
performance levels, while providing opportunities for personal
and professional growth for each employee.
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Contemporary Views of Leadership (cont.)
•
•
Transactional leaders – Transactional leaders use
disciplinary power and an array of incentives to motivate
employees to perform at their best. The term
“transactional” refers to the fact that this type of leader
essentially motivates subordinates by exchanging rewards
for performance.
Transformational leaders – A transformational leader
goes beyond managing day-to-day operations and crafts
strategies for taking his company, department or work
team to the next level of performance and success. These
leaders set goals and incentives to push their subordinates
to higher performance levels, while providing opportunities
for personal and professional growth for each employee.
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17 - 27
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What is the difference Between Power &
Authority?
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What are different sources of Power?
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Leadership & Power
Five Sources of Power
• REFERENT POWER – Based on followers’ identification
and liking for the leader.
– ex. A teacher who is adored by students has referent power.
• EXPERT POWER – Based on followers’ perceptions of the
leader’s competence.
– ex. A tour guide who is knowledgeable about a foreign country has
expert power.
• LEGITIMATE POWER – the power a leader has as a result of his or her
position.
– ex. A judge who administers sentences in the courtroom exhibits
legitimate power
Leadership & Power
Five Sources of Power
• REWARD POWER – Derived from having the capacity to
provide rewards to others.
– ex. A supervisor who gives rewards to employees who work hard is
using reward power.
• COERCIVE POWER – Derived from having the capacity to
penalize or punish others.
– ex. A coach who sits players on the bench for being late to practice
is using coercive power.
Developing Trust
• Credibility: the degree to which followers perceive
someone as honest, competent, and able to inspire
• Trust: the belief in the integrity, character, and ability of a
leader
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Leading Virtual Teams
• Emerging technologies make working remotely more and
more common.
• The lack of a “face-to-face” feature presents unique
leadership challenges.
• Managers need to become effective virtual leaders.
• The informal interaction or “water cooler talk” is restricted
in the virtual world. Managers need to overcome this in
some way.
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Leadership Training
• Leader training is most effective when there are multiple
sessions that combine:
– Information
– Demonstration
– Practice-methods
• Some people aren’t meant to be leaders.
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REVIEW QUESTIONS
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Exercises –Choose one best Answer
1) In her speech the previous day, the new CEO had discussed his
experience in the industry and his education. Carrie thought that
the new CEO would do a great job given these characteristics,
coupled with his good oratory skills and the fact that he just looked
like a CEO. Carrie realized that she had been judging the new
CEO in a manner consistent with the ________ theories of
leadership.
1) _______
A) contingency
B) situational C) behavioral D) trait
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Exercises –Choose one best Answer
2) Which of the following describes the leadership style in which a
leader tends to centralize authority, dictate work methods, make
unilateral decisions, and limit employee participation?
2)
_______
A) authoritarian style
B) autocratic style
C) laissez-faire style
D) democratic style
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Exercises –Choose one best Answer
3) The ________ style of leadership describes a leader who tends
to involve employees in decision making, delegate authority,
encourage participation in deciding work methods and goals, and
use feedback as an opportunity for coaching employees. 3)
_______
A) autocratic B) laissez-fair C) participative
D) democratic
4) The ________ theory is a contingency theory that focuses on
followers' readiness. 4) _______
A) adjustable leadership
C) situational leadership
B) facilitative leadership
D) adaptive leadership
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Exercises –Choose one best Answer
5) Barbara solicits input from her subordinates before making
decisions that will affect them. She often praises them for good
work and gently offers suggestions to improve their performance.
Barbara uses the ________ style of leadership.
5) _______
A) participative
B) autocratic C) supportive D) democratic
6) Which of the following leadership styles describes a leader who
provides little direction or support? 6) _______
A) telling
B) selling
C) participating
D) delegating
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Exercises –Choose one best Answer
7) According to Hersey and Blanchard, a high task-low relationship
situation calls for the ________ leadership style.
7) _______
A) telling
B) selling
C) delegating D) participating
8) Which of the following leadership styles describes a leader who
provides both directive and supportive behavior? 8) _______
A) telling
B) selling
C) participating
D) delegating
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Exercises –Choose one best Answer
9) Jeremy is not in the habit of deciding everything on his own. He
involves his team in the decision-making process as much as
possible. He believes in communicating clearly and is always
ready to help his team to get the best out of them. Jeremy's
leadership style will be classified as which of the following? 9)
_______
A) telling
B) selling
C) participating
D) delegating
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Exercises –Choose one best Answer
10) When Alan was promoted to the head of the sales team at Mac
Software Inc., he chose three of his closest friends in the team to
form the core sales group with him. Which of the following
predictions would be consistent with the LMX theory?
10)
______
A) Job satisfaction is more likely to be higher for the team members
who are not a part of the core group.
B) Such an arrangement eventually becomes unstable.
C) Team members who are not a part of Alan's core group are
actually far more competent than his friends who form the core team.
D) There will be a higher turnover among team members who are
not a part of the core group.
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Exercises –Choose one best Answer
11) A leader, such as Bill Gates of Microsoft, who can inspire
followers above their own self-interests and can have a profound
effect on their performance, is known as a(n) ________. 11)
______
A) transactional leader
B) informational leader
C) directive leader
D) transformational leader
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Exercises –Choose one best Answer
12) Which of the following is the type of power a person has because
of his or her position in the formal organizational hierarchy?
12) ______
A) coercive power
C) legitimate power
B) reward power
D) expert power
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Exercises –Choose one best Answer
13) Juan is the person employees go to when knowledge of a topic
was needed. Juan holds ________ power. 13) ______
A) expert
B) legitimate C) reward
D) referent
14) Clay is the person employees go to when they are to receive
special recognition. Clay holds ________ power. 14) ______
A) legitimate B) referent
C) coercive
D) reward
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Exercises –Choose one best Answer
15) ________ is the power that arises because of a person's
desirable resources or personal traits.
15) ______
A) Reward power
B) Referent power
C) Legitimate power D) Expert power
16) Tamera is the person employees go to when disciplinary action is
necessary. Tamera holds ________ power. 16) ______
A) reward
B) expert
C) legitimate D) coercive
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Exercises –Choose one best Answer
17) When a young child emulates a professional sports star's
behavior, what kind of power does the star have over the child?
17) ______
A) legitimate B) coercive
C) referent
D) expert
17) One general conclusion that surfaces from leadership research
is that ________.
17) ______
A) managers always make good team leaders
B) women usually make better transactional leaders than men
C) effective leaders do not use any single style
D) national culture is one situational variable which in reality has a
limited impact on leadership style
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