McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
13
Leadership
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After reading this chapter, you should be able to:






McGraw-Hill
Distinguish between management and leadership.
Recognize how leaders use different power bases to
exercise influence.
Differentiate effective from ineffective leaders.
Identify and apply the major theories of
leadership.
Identify organizational characteristics that
determine the need for and importance of
leadership.
Strengthen the values and ethics of an
organization through leadership.
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
What Makes A Leader Effective?




McGraw-Hill
Ability to influence other people
Has a vision – ideas or objectives that
clarify to others where they should be
headed
“Sells” the vision by articulating it in a
compelling and persuasive manner
Encourages followers to establish
appropriate implementation activities
to support the accomplishment of the
vision
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Compare
Leadership
Management
Contrast
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Practices Associated with
Leadership by Managers

Planning and organizing

Supporting

Problem solving


Clarifying
Managing conflict and
team building

Informing

Networking

Monitoring

Delegating

Motivating

Developing and mentoring

Consulting

Rewarding

Recognizing
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Power
Coercive
Power
Reward
Power
Legitimate
Power
Expert Power
Referent
Power
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Leadership: Traditional Explanations
Person-based Theories
Situational Theories
Dispersed Theories
Exchange Theories
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Trait Theory
“Can-Do”
Attitude
Honesty
and Integrity
Intelligence
McGraw-Hill
Desire
to Lead
SelfConfidence
Ambition
and Energy
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Behavioral Theories
Initiating Structure
Ohio State
Consideration
University of
Michigan
McGraw-Hill
Employee-Orientation
Production-Orientation
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Managerial Grid
1
(1,9)
(9,9)
Concern for People
2
3
4
5
(5,5)
6
7
8
9
(9,1)
(1,1)
1
2
3
4
5
6
7
8
9
Concern for Production
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Findings of the Fiedler Model
Performance
Good
Poor
Relationship-Oriented
Task-Oriented
Favorable
Category
• Leader-Member
Relations
• Task Structure
• Position Power
McGraw-Hill
Moderate
I
II
Good
High
Strong
Unfavorable
Good
III
Good
IV
Good
V
Poor
VI
Poor
VII
Poor
VIII
Poor
High
Weak
Low
Strong
High
Weak
High
Strong
High
Weak
Low
Strong
Low
Weak
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Path-Goal Framework
Environmental
Contingencies
Leader
Behavior
Outcomes
Subordinate
Contingencies
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Dispersed Theories

Substitute Leadership:attempts to
identify workplace characteristics
that can substitute for leadership or
neutralize efforts made by a leader

Self-Leadership: leadership that
stresses the individual responsibility
of employees to develop their own
work priorities aligned with
organizational goals
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Characteristics of Traditional and Self-Managing Behaviors:
Traditional Leader Behaviors
Self-Managing Leader Behaviors
Organization – Structures own and subordinates
Encourages self-reward
Domination – Restricts or limits the discretion of
Encourages self-observation
Production – Sets standards for task performance
Encourages self-goal setting
Recognition – Expresses approval or disapproval
Encourages self-criticism
Integration – Promotes group cohesion and
Encourages self-rehearsal
Communication – Provides, seeks, and
Acts as a role model by exhibiting appropriate
behavior
work
individuals or groups
of behavior
reduces group conflict
exchanges information with group members
Fosters the development of a culture that
nourishes and supports self-leadership
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Exchange Theories

Transactional Leadership: leaders who use
legitimate, coercive, or reward powers to elicit
obedience and attempt to instill in followers the
ability to question standard modes of operation

Transformational Leadership: leaders who
revitalize organizations by instilling in followers the
ability to question standard modes of operation

Authentic leadership: An approach that emphasizes
the importance of a positive directive force,
particularly in an environment of increasing
complexity, change, and uncertainty
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Characteristics of Transactional and
Transformational Leaders
Transactional Leader
Transformational Leader

Contingent reward

Charisma

Management by exception
(active)

Inspiration

Intellectual stimulation

Management by exception
(passive)

Individualized consideration

Laissez-Faire
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Applications of Management
Perspectives—For the Manager

Managers should identify the theories that best fit
them and their situations:
Some situations call for a strong person to guide the
organization through change
 Other situations may call for the dispersed leadership
 Uncertainties and difficult times may best match
authentic leadership


McGraw-Hill
Both management and leadership skills can be positive
for employees and the organization; they will also bode
well for your own career.
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Applications of Management
Perspectives—For Managing Teams

Effective teams have a shared vision and a
common purpose that comes from leaders.

Leadership may come from inside the team itself.

The increasing prevalence of empowerment and
self-leadership underscores the importance of team
members understanding and developing
leadership skills.
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Applications of Management
Perspectives—For Individuals


Employees are more likely to succeed if they can
manage themselves without relying on others to
motivate them and define their tasks.
Employees can become self-leaders by:





McGraw-Hill
Finding opportunities in their work environment.
Showing initiative.
Encouraging others to do their best.
Generating enthusiasm for the tasks at hand.
Individuals can apply these leadership theories to
the work environments and improve performance,
as well as their potential for advancement.
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.