Chapter 13 Leadership LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. 2. 3. 4. 5. 6. Discuss leadership traits, skills, and behaviors Differentiate between management and leadership Describe the five sources of power leaders may possess Differentiate between positive and negative motivation Describe the three decision-making styles used by leaders Explain the two primary approaches leaders can take: task centered and people centered 7. Describe the three theories of situational leadership 8. Discuss the three challenges facing leaders KEY TERMS autocratic style contingency model Emotional Intelligence (EQ) free-rein style influence leadership Leadership Grid® leadership style life-cycle theory participative style path-goal theory © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER OUTLINE I. INTRODUCTION A. Leadership Defined II. LEADERSHIP TRAITS A. Leadership Skills B. Leadership Behaviors III. MANAGEMENT VERSUS LEADERSHIP IV. POWER AND LEADERSHIP A. Legitimate Power B. Coercive Power C. Reward Power D. Expert Power E. Referent Power F. Leadership Styles V. POSITIVE VERSUS NEGATIVE MOTIVATION VI. DECISION-MAKING STYLES A. Styles 1. Autocratic Style 2. Participative Style 3. Free-Rein Style VII. TASK ORIENTATION VERSUS PEOPLE ORIENTATION A. Two Methods 1. University of Michigan Studies 2. The Ohio State University Studies 3. The Leadership Grid® VIII. THEORIES OF SITUATIONAL LEADERSHIP A. Fiedler’s Contingency Model B. House and Mitchell’s Path-Goal Theory 1. Leadership Behaviors 2. Situational Factors C. Hersey and Blanchard’s Life-Cycle Theory IX. CHALLENGES FACING LEADERS A. Leadership Throughout an Organization B. Leadership and Rapid Response C. Leadership and Tough Decisions D. How managers can become better leaders © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Enrichment Vignette In this chapter, we learned about different kinds of leadership approaches. Some leaders are very people oriented and are great at encouraging employee participation. Others are more focused on output, but they are still successful. Some may be autocratic, perhaps focusing more on the stick than the carrot. We have also seen that it may be useful to be flexible in one’s leadership abilities so that—when one has the time to do so—one may use a participative approach, but if there is an emergency situation involving a potential catastrophe, one can take charge with an immediate (perhaps autocratic) decision. LECTURE OUTLINE The outline below (the lecture outline) is referenced to the above chapter outline and contains supplementary material to enhance your discussion of the chapter, but it is organized somewhat differently. As a result, you have a choice: by using what is in the outline below, (1) you may present the above chapter outline material in a different sequence, or (2) you may use the chapter outline references in the outline below to present the lecture outline material in the same sequence as the chapter outline. I. INTRODUCTION (CHAPTER OUTLINE: SECTION I) II. LEADERSHIP DEFINED A. Leadership Traits (CHAPTER OUTLINE: SECTION II) 1. 2. 3. B. Managers who wish to be successful quickly realize that their most precious resource is people. The challenge for the manager is to provide the right amount and type of leadership to cultivate and develop individual employees. Leadership is the process of influencing a group or individual to set a goal or achieve a goal. a. It is a process involving the leader, the led (group or individual), and a particular goal or situation. b. Management and leadership are not synonymous. Leadership Skills 1. 2. 3. Initially, it was thought that successful leadership was a result of the personality traits a person possessed. These leadership studies focused either on identifying the traits of persons who were leaders versus those of non-leaders, or on comparing the traits of successful leaders with the traits of unsuccessful leaders. Neither focus proved valuable because it simply was not possible to isolate a set of personality traits of effective leadership. A more viable or acceptable approach to distinguishing leadership traits is to recognize that no single list of exclusive skills or traits exists for successful leaders. Whereas traits are the characteristic of leaders, the competencies and capabilities of a leader are his or her skills. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. C. It must be emphasized that no list of leadership traits and skills is definite because no two leaders are alike. Leadership Behaviors 1. 2. 3. D. To be understood and recognized, behaviors must be meaningful and measurable. Behaviors are the actions taken by a leader in the course of daily work. Behaviors are the “outward” result or end result of traits and skills. That is, behaviors display traits and skills. Management Versus Leadership (CHAPTER OUTLINE: SECTION III) 1. 2. Management and leadership are not synonymous. This must be emphasized. Although managers are required to plan, organize, staff, lead, and control, they may or may not be effective in influencing their subordinates toward goal accomplishment. 3. Ideally, all managers should be leaders, but many are not. 4. Constructive leadership is often found in nonmanagerial personnel. 5. From an organizational point of view, individuals who are both leaders and managers are extremely valuable—and rare. Enrichment Vignette According to James M. Kouzes and Barry Posner, authors of The Leadership Challenge: How To Get Extraordinary Things Done In Organizations, successful leadership depends far more upon the follower’s perception of the leader’s abilities than upon the leader’s own perceptions. In other words, leadership is won when people believe that the leader is capable of meeting their needs. A survey conducted of more than 7,500 managers identifies the following crucial qualities people expect of their leaders: 1. 2. 3. III. Integrity—being truthful, trustworthy, and having both character and convictions. Competence—being capable, productive, and efficient. Inspiring—being decisive and providing direction. POWER AND LEADERSHIP (CHAPTER OUTLINE: SECTION IV) A. Legitimate Power 1. 2. 3. 4. 5. The way leaders extend their influence over others is through the use of power. It is the foundation of leadership. Power is personal—it exists because of the person. There are various sources of power. Legitimate power is also referred to as position power. Holding a managerial position with its authority provides a base of power. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6. Through this power, the manager has the right to tell someone what to do and how to do it—plus control resources and give out rewards. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. B. Coercive Power 1. C. Reward Power 1. D. 2. Expert power is possessed by leaders who have demonstrated their superior skills and knowledge. Managers who have shown that they know what to do and how to do it get the respect of those around them. Referent Power 1. 2. IV. The opposite of coercive power is reward power. Expert Power 1. E. Coercive power is punishment for a subordinate’s unacceptable outcomes and performances. Charismatic, referent, or personal power is based on the kind of personality an individual has and how that personality is perceived by others. In essence, referent power develops followers from the strengths of personality. LEADERSHIP STYLES A. Positive Versus Negative Motivation (CHAPTER OUTLINE: SECTION V) 1. 2. 3. B. Leaders with positive styles use positive motivations. They motivate by using praise, recognition, or monetary rewards or by increasing security or granting additional responsibilities. A negative leadership style incorporates coercion known as sanctions—fines, suspensions, termination, and the like. Positive leaders encourage development and higher levels of satisfaction while negative leaders withhold items of value and create fear and distrust. Decision-Making Styles (CHAPTER OUTLINE: SECTION VI) 1. 2. Leaders influence others toward goal achievement through their approaches to motivation. Depending on the style of the manager, the motivation can take the form of rewards or penalties (positive or negative). A second element of a manager’s leadership style concerns the degree of decision-making authority the manager grants to subordinates. a. b. The styles may range from absolute decision making by the manager, with no opportunity for participation by the subordinates, to decision making by the group within the limits defined by the manager. Specifically, leadership style is characterized by the manager involving the subordinates in the decision. The involvement has a range. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1. 3. C. The autocratic leadership style describes decision making solely by the manager. The manager can make and announce decisions, “sell” the decisions to the employees, or make the decisions and allow questions to be asked. This style can be appropriate in various situations. 2. The participative leadership style is characterized by the manager’s involving the subordinates in the decision. This involvement has a range. a. The manager presents a tentative solution subject to change based on employee input. b. The manager presents a problem to the employees, solicits their input, and makes the decision. c. The manager defines the limits of the problem and the employees make the decision. d. The manager and the employees jointly make the decision. The free-rein style of leadership is characterized by the leader’s encouraging the individual or group to function independently. a. The leader either sets limits and the followers work out their own problems, or the individuals set their own goals. b. The leader’s role is to serve as a logistics specialist or representative of the group to outside groups. Task Orientation Versus People Orientation (CHAPTER OUTLINE: SECTION VII) 1. 2. Another element of leadership is the manager’s perspective on the most effective way of getting work done. The key areas are task and employee orientation. A manager who favors a task orientation places emphasis on getting the job done through better methods of equipment, control of the work environment, assigning and organizing work, one-person decision making, and monitoring through evaluation of performance. 3. 4. 5. An employee orientation emphasizes concern for the human needs of subordinates. Teamwork, positive relationships, trust, and solution of employee problems are the major focus of the employee-oriented manager. In actuality, these two perspectives are not mutually exclusive. A blend of both employee orientation and task orientation appears to be the working formula for most successful managers. Numerous studies have been conducted regarding task versus people orientation. Enrichment Vignette A recent phenomenon in industry has been the attempt by organizations to make room for the diversity of leadership styles of men and women. Until very recently, the general perception of business management was a structure dominated by males whose leadership style was hierarchical, action-oriented, and even quasi-military. The ideal leader was seen as an independent, tough, individualistic hero. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. But now a new generation of women is bringing to business a style often described as more consensus-building, more open and inclusive, more likely to encourage participation by others, and even more caring than that of many males. The best outcome is that these differing styles become complementary rather than confrontational. When this happens, men and women learn the strengths of each other’s approach. Many women are incorporating the best of the traditional styles, such as focus on performance, into their leadership portfolios, while more men are adopting the so-called “soft” approaches that women use effectively. V. THEORIES OF SITUATIONAL LEADERSHIP (CHAPTER OUTLINE: SECTION VIII) A. Fiedler’s Contingency Theory Fiedler’s contingency model holds that the most appropriate style of leadership for a manager depends on the situation in which the manager works. 2. The effectiveness of the manager is determined by the interaction of the manager’s orientation (task or employee) with three situational variables: leader-member relations, task structure, and leader position power. a. Leader-member relations refers to the degree to which the leader is or feels accepted by the group. It is measured by the degree of respect, confidence, and trust the subordinates feel toward the superior. b. Task structure concerns the nature of the subordinate’s job or task. It reflects the degree of structure in the job. c. Leader position power describes the organizational power base from which the individual manager operates. 3. Task-oriented leaders perform best with either low or high concentrations of power and influence. Employee-oriented leaders perform best with moderate power, control, and influence over a situation. 4. In addition, leaders may perform well in one job and not another. The position in which an organization places a leader makes a difference. Organizations can attempt either to fit the manager to a situation or the situation to the manager. 5. One of the major points in this leadership approach is that the leadership style of the manager is assumed to be constant. 6. If a manager were to use this approach, he or she would be looking to match his or her leadership style with the correct situation. 1. B. House and Mitchell’s Path-Goal Theory 1. 2. 3. The path-goal theory of leadership by House and Mitchell is concerned with the ways in which a leader can influence a subordinate’s motivation, goals, and attempts at achievement. It suggests that a leadership style is effective or ineffective on the basis of how the leader influences the perceptions of (1) work goals or rewards of subordinates and (2) paths (behaviors) that lead to successful goal accomplishment. The path-goal theory states that the leader can influence the perceptions of rewards and can clarify what the employees have to do to achieve these rewards. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 5. C. Hersey and Blanchard’s Life-Cycle Theory 1. 2. VI. The two main components of the theory are leader behavior and situational factors. a. Leader behavior influences both goal attractiveness and the paths available to reach the goals. Leader behavior is acceptable and satisfying to subordinates to the extent that they view such behavior as either an immediate source of satisfaction or an instrument to future satisfaction. Leader behavior will increase subordinates’ efforts if it links satisfaction of their needs to achieve goal performance. There are four types of leadership behavior based on the work needed. 1. Instrumental behavior involves the planning, monitoring, and task assignment aspect of leadership. 2. Support behavior involves the employee-oriented concern for the welfare and needs of subordinates. 3. Participative behavior involves using subordinates’ ideas in decision making. 4. Achievement-oriented behavior involves developing a highly challenging climate for an employee and demanding good performance. b. The two situational factors that influence leadership behavior are the personal characteristics of the subordinates and the environmental pressures and demands with which subordinates must cope to accomplish goals and satisfy personal needs. 1. Personal characteristics of a subordinate include the person’s ability, self-confidence, and needs. 2. Environmental pressures include the influences on subordinates that they cannot control but which affect their abilities to perform the task effectively. The path-goal theory requires that the leaders determine what subordinates want from their work and then help show them how to acquire those things through their work. The life-cycle theory relates leadership behavior to subordinate maturity levels. New, inexperienced, and immature subordinates require different leadership approaches than established, experienced, and mature workers. CHALLENGES FACING LEADERS (CHAPTER OUTLINE: SECTION IX) A. Leadership Throughout an Organization 1. 2. 3. Leadership must be displayed, exercised, and effective throughout all levels of an organization. Self-directed teams also need leadership to be effective over an extended period of time. Employee involvement can spawn leadership from within. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. B. Leadership and Rapid Response 1. 2. C. Constantly changing demands such as cultural diversities demand quick decisions and influence. Speed is essential; managerial response times must be spontaneous in many different ways. Response, action, and influences must happen without delay. Leadership and Tough Decisions 1. Unwelcome, unpopular, and unacceptable responses to management decisions are common throughout many organizations. 2. 3. During a crisis or difficult times, leaders must commit themselves to seeing decisions through as well as facing the consequences of their decisions. Most tough questions or situations lead to tough decisions. VII. HOW MANAGERS CAN BECOME BETTER LEADERS 1. 2. 3. 4. 5. 6. 7. Know thyself before attempting to lead others. An individual’s philosophy will greatly influence the leadership approaches and behaviors of that individual. Leaders must be adaptable and think situational. Leaders must lead by example. Effective leaders allow for team building. Leaders must use various styles according to the variables at hand. Leaders must adopt the self-improvement philosophy of kaizen. SUGGESTED RESPONSES TO REVIEW QUESTIONS 1. In what ways do a person’s traits and skills give them influence over others? The skills, traits, knowledge, attitudes, and experiences shape an individual’s personality, philosophies, beliefs, and behaviors, which all contribute to one’s ability to impact or influence others. It is the totality and combination of these human features that provide the foundation and framework for leadership. 2. How are management and leadership similar? Different? Leadership is a portion of the big picture of management. Managers attempt to accomplish, while leaders attempt to influence. That is, management and leadership are not synonyms. Managers plan, organize, staff, lead, and control. They may or may not be effective in influencing their subordinates or team members to set and achieve goals. Ideally, leadership and management skills combine. 3. What are the five sources of influence over others in organizations? Legitimate power is based upon the position and assignment formally assigned by the organization. Although negative, coercive power is also utilized by some leaders. Expert power is reflective of one’s abilities, skills, knowledge, and experience. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Referent power is personal and is based upon the personality characteristics that are real or perceived by others. Reward power is the opposite of coercive power and influences positively. 4. Do you think it is better to lead through positive or negative motivational means? Why? What are the advantages and disadvantages of each approach? Student responses will vary greatly. Obviously, leaders with positive styles use positive motivations. They motivate by using praise, recognition, or monetary rewards or by increasing security or granting additional responsibilities. However, a negative leadership style incorporates coercion known as sanctions—fines, suspensions, termination, and the like. 5. Describe a set of circumstances can you give that would require a leader to use an autocratic style? A participative one? A free-rein style? a. b. c. 6. Autocratic leadership should be used with immature subordinates, during a crisis, for training purposes, during limited time demands, or when employees are not empowered and the manager must make the decision(s). Participative managers share in the decision-making process and when group efforts are being encouraged. This style is also appropriate during the resolution of issues and the gathering of new and varied inputs. The free-rein style lends more toward mature and experienced participants. Selfinitiators that have and know how to use the work tools fare well as subordinates in this style. Under what circumstances should a leader be task centered? People centered? Use a blend of both approaches? A manager who favors a task orientation places emphasis on getting the job done through better methods or equipment, control of the work environment, assigning and organizing work, one-person decision making, and monitoring through evaluation of performance. An employee orientation emphasizes concern for the human needs of subordinates. Teamwork, positive relationships, trust, and solution of employee problems are the major focus of the employee-oriented manager. A blend of both approaches would be utilized when all of these factors are in place and attention to each is important. 7. What are the basic components of Fiedler’s contingency model of leadership? How do they affect a leader’s choice to focus on task or people? a. Leader-member relations refers to the degree to which the leader is or feels accepted by the group. It is measured by the degree of respect, confidence, and trust the subordinates feel toward the superior. b. Task structure concerns the nature of the subordinate’s job or task. It reflects the degree of structure in the job. c. Leader position power describes the organizational power base from which the individual manager operates. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8. What does the path-goal theory of leadership tell a leader to do? a. b. c. d. 9. Instrumental behavior involves the planning, monitoring, and task assignment aspect of leadership. Supportive behavior involves the employee-oriented concern for the welfare and needs of subordinates. Participative behavior involves using subordinates’ ideas in decision-making. Achievement-oriented behavior involves developing a highly challenging climate for an employee and demanding good performance. What does the life-cycle theory of leadership say about the use of the three styles of decision making? Managers’ leadership styles result from their philosophies about motivation, their choices of decision-making styles, and their areas of emphasis in the work environment—whether they focus on tasks or people. The life-cycle theory addresses two main components: leader behavior and situational factors. The two situational factors that influence leadership behavior are the personal characteristics of the subordinates and the environmental pressures and demands with which subordinates must cope to accomplish goals and satisfy personal needs. The Managerial Grid does not address these aspects. 10. What are the three challenges facing leaders today? How can they deal with each? There will be many possible answers to these questions; however, as stated in the text, leaders must be present at all levels of the organization. They must respond quickly to changing demands and they are continually faced with difficult decisions. INSTRUCTIONAL EXPLANATION: DISCUSSION QUESTIONS FOR CRITICAL THINKING These thought-provoking questions are provided by the authors for each chapter as primers for student discussion. This method of questioning ensures that the students have read the assigned materials or content. These questions are presented to generate thinking and discussion. They can be used as supplemental homework assignments and/or class discussions that center on specific critical thinking issues and applications. It is important that students are able to respond from their experiences and through their perceptions as well as incorporate the specific course content into their reasoning, explanations, descriptions, and individualized contributions. Most of these questions cannot be answered in a right/wrong fashion. Instead, student responses and/or group discussions should be encouraged by the instructor to bring out individualized critical thinking as opposed to absolute correct answers. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. WEB 2.0 EXERCISES Groupon. See www.groupon.com Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Using information found on the Groupon site, as well as material from the text answer the following question. 1. Price sensitivity and the ability to keep customers buying are drivers of future business success. However, obtaining employee buy-in is the most important factor influencing a Groupon promotion’s success. Employees might be concerned that the company is charging too little for the product or service. Their behavior can make the Groupon offer succeed or fail. How might an onslaught of bargain hunters affect employees’ hours and wages? 2. What steps can managers deciding to try Groupon take to influence employees to create a positive experience for customers? How can mangers keep their employees content? Student’s answers will vary. The answers should demonstrate a strong knowledge of the chapters’ main objectives as they apply to Groupon. Class discussion may be helpful in eliciting creative responses. SUGGESTED RESPONSES TO EXPERIENTIAL LEARNING CASE: The End of Olds 1. What kind of leadership style did Rock used with his division’s dealers? What kind of leadership style is Rock’s boss probably use with him? Was it appropriate? Student responses will vary from contingency to participative, free rein, etc. 2. Which leadership traits did Rock exhibit? Which skills? Similar to the above question, a variety of answers can be expected. 3. Which of Yukl’s leadership behaviors did Rock exhibit? The traits and skills for managers are numerous and students will reply with different opinions. The instructor should encourage diversified replies. 4. How did Rock’s planned retirement help him to make some tough decisions? This answer is perceptual and students should be encouraged to justify and thoroughly explain their opinions. Open forum discussion is suited for this style of questioning. ADDITIONAL CASE PROBLEMS WITH SUGGESTED ANSWERS: A DAY IN THE LIFE OF ALEX SIMONOV © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Before his morning coffee break, Alex Simonov finished his daily reports and taught the new kid how to file. During his coffee break, he sat with two of his subordinates and asked for their ideas about some new equipment he was thinking of purchasing. They gave him several ideas he hadn’t thought of and alerted him to some possible alternative machines. Returning to his office, he contacted the manufacturer and asked for their catalogs. As he finished his last call, Sylvia entered his office with a frown on her face. After some friendly conversation, she finally explained her problem: “Mr. Simonov, I can’t work at my desk any longer. That chair is wobbly and squeaks every time I move in it. It’s driving me crazy and has been for weeks “Why have you waited so long to tell me this, Sylvia?” “I know you’re busy and we have a cutback on our departmental budget. I didn’t think you could do anything. But now I’m desperate!” “I’ll take care of it. Give me a day or two, will you?” “Sure. Thanks, Mr. Simonov.” No sooner had Sylvia left than his telephone rang. It was Alice Goulos from the neighboring office. Alice and Alex discussed their views on their bosses’ proposals for the expansion of their facilities and finally agreed on a united approach. They formulated their counterproposals and recorded their justifications for them. Over lunch, Alex talked with his boss about the staff retirement party for Lisa Gardino. Several other managers joined their table and the conversation turned to sports, then to politics, and finally to the future of the economy. After lunch, Alex met with the personnel director to discuss filling the vacancy in his department. The two agreed on an up-to-date job description and its specifications. Alex was promised some candidates to interview within ten days. Returning to his office, Alex worked on his subordinates’ appraisals. He referred to his notes, in which he had recorded major and minor events as they had unfolded over the past several months. Alex kept detailed notes about project assignments, their due dates, and the results of subordinates’ efforts. He used his own rating scale from 1 through 6, 6 being the highest rating for a given project completed on time and in perfect shape. Looking ahead on his calendar, he blocked out time for several interviews during which the results of his efforts would be shared. His day ended with a discussion at the desk of one of his subordinates. Alex explained to Jonah Watson that the company was gearing up for another class in its management training program and was looking for qualified applicants. Alex suggested that Jonah would certainly qualify and could attend if he was interested in doing so. Alex would write the recommendation and reschedule the work so that Jonah could attend. It was nearly 6 P.M. when Alex left for home. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. QUESTIONS 1. How has Alex demonstrated each of the path-goal theory leadership behaviors? Instrumental behavior. Alex is a careful planner and monitors the results of his task assignments. He looks ahead, reserves time, and yet is flexible and able to cope with unexpected events. He plays this role superbly. Supportive behavior. Alex is a warm and open person. He shows support to Sylvia in two ways: he is available when she wants to see him and promises to cure her problem within a day or two. He is supportive to Jonah by offering to recommend him for the training program and to reschedule his work to allow for attendance. Participative behavior. Alex consulted with his people over the acquisition of new equipment. He consulted with Jonah before recommending him for training. He worked with personnel to gain an up-to-date job specification and description. Alex coordinated actions and approaches with Alice to form a united front. Achievement-oriented behavior. Although the case gives nothing to support this behavior directly, it does show Alex to be a model of efficiency, have concern for people, and have concern for production. Alex appears to be a person who looks forward to challenges and meets them head-on. If the subordinates see him as we do in the case, he will certainly support a climate for demanding good performances. He is a fine example for his subordinates and peers. 2. Where would you place Alex on Blake and Mouton’s Leadership Grid? Alex has a fairly even concern for both production and people. If he leans in any direction, it would probably be in the direction of people. It is hard to imagine a more concerned boss. Students may argue for position 5.5, 9.9, or 1.9 depending upon their assumptions. 3. How would you describe Alex’s leadership or managerial philosophy? Many answers are possible here but the question wants students to discuss Alex as a Theory Y manager. The case portrays Alex as a teacher, counselor, judge, and truly concerned boss. He is, for the most part, a believer in participative and free rein leadership. He knows his people well, even though he is not with them at all times. His evaluations are probably most complete. SHOCK THERAPY Robert Manson is exhausted. He has just returned home from his first day as a trainee at Casa Del Sol, a neighborhood restaurant featuring Mexican cuisine. Bob has been hired to learn the business and eventually to take over its management once the owner, Jose Morales, leaves to open his second restaurant. After going through his mail and finishing a drink, Bob begins to reflect on the day’s experiences. The first thing that bothered Bob was the fact that Jose was an absolute dictator. He seemed to be the exact opposite of what his college course in management said a manger © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. should be. Bob remembered how Jose shouted orders and instructions to almost everyone throughout the day. Even during the slack periods between meals, Jose was making constant demands on his people, Bob included. Not once could Bob remember Jose asking anyone’s opinion or using the word “please.” In spite of Jose’s approach to management, the restaurant ran like a well-oiled machine. This fact puzzled Bob the most. Why, he thought, weren’t the people resentful of Jose? They all did their jobs efficiently, and not once had Bob heard them complain. Bob remembered one incident very clearly. A waiter had asked Jose if he could make a change in a procedure. After listening impatiently to the proposal, Jose responded as follows, “No good. Just do it like I trained you to and we will all get along just fine. Everyone here does everything the same, and that’s the way it is. You follow?” The waiter nodded his approval and went back to his duties. Bob was worried that he could not operate the restaurant in Jose’s style. He knew the values of participative management and felt that it was his natural style. He was afraid that he could not adjust to an autocratic style, especially since he believed it was a negative style, to be used when all other styles failed. During his first day, Bob had studied the restaurant’s procedures and questioned the wisdom behind a few of them. Now he felt he could not discuss them with Jose. He began to think his career in restaurant management would be a short one if he could not adjust to Jose’s methods. Bob liked Jose. All the people who worked for Jose seemed quite happy with their work. Jose had been civil and even friendly toward Bob throughout the day, but he demanded and got instant reactions from people. The restaurant was a successful business and offered Bob the promise of a very fine salary. Jose’s methods certainly seemed to work and the place was packed for three meals each day. How can it be, Bob reflects, that such autocratic methods had produced such good results? Bob begins to search for his text on management. QUESTIONS 1. Why do Jose’s autocratic methods get good results? The autocratic method has its place. It is not evil unless it is misapplied. It works with people who need it (newcomers and those who wish specific direction), with people who have little to offer a manager in the way of useful input (newcomers, unskilled), and with managers who find it to be the only style they feel comfortable with. In this latter case, at least subordinates know what to expect from such a boss and the boss will certainly be predictable. Like it or leave the environment. The autocratic style should be applied to an environment with peak periods of hectic activity where time is short and certainly not adequate for debates and discussions. It helps to reinforce uniformity of conditions and behaviors. It gives people a good measure of security. It works wonders for the boss and stifles creativity and questioning of one’s conditions. What most restaurants don’t need is creative busboys and waiters. What a chef does not want is a creative assistant who will vary the recipes. 2. What can you tell Bob about the usefulness of his preferred style of management at the Casa Del Sol? © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Keep in mind that Bob has observed Jose for just one full working day, and a training day at that. Jose may well use other styles where he feels they fit, and Bob has just not had the opportunity to observe such situations yet. The participative style may have its uses at the restaurant. Employees who have the most experience with a job and its procedures should be consulted before significant changes are made and should be asked to recommend improvements. A manager who is new to his job and who understands little about his subordinates’ jobs may be wise to seek counsel from a variety of sources before making changes. Bob needs to understand that several styles of management exist and that they all have specific applications. Each manager has one or another of them as a preferred style, one that seems to fit him or her best. Environmental factors affect the style chosen—the job structure, the amount of technology, and the ability levels of those being led. The elements of a manager’s leadership style include motivational approach, decision-making style, and areas of emphasis (orientation) in the work environment. ON THE JOB VIDEO CASE SOLUTIONS: GREENSBURG KS: DECISION-MAKING Discussion Questions: 1. Steve Hewitt seemed to demonstrate an automatic approach to leadership. Do you think that the ends justified the means in his case? Why or why not? 2. Steve was willing to allow community meetings in which inputs would be permitted. Was that an example of participative decision-making? Why or why not? 3. If you had been in Steve Hewitt’s shoes, how would you have handled the situation? TEAM ACTIVITY Some managers are good at certain functions such as planning, organizing, and controlling, but they are not good at leading or getting people to do things because they want to. Rather, subordinates do what the manager wants because they are required to do so. But many informal leaders are effective in getting people to do things because they want to do so. However, the informal leader may not know how to plan, organize, and control. Within each group, discuss the following: If a management position needed to be filled, would it be better to select someone who has demonstrated an ability to plan, organize, and control— though that person lacks leadership abilities? Or would it be better to pick an outstanding informal leader and train the person in management? © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. BIZ FLIX VIDEO CASE Video Case: Because I Said So Video Case Synopsis Meet Daphne Wilder (Diane Keaton)—your typical meddling, overprotective, and divorced mother of three daughters. Two of her three beautiful daughters have married. That leaves Millie (Mandy Moore) as the focus of Daphne’s undivided attention and compulsive behavior to find Millie a mate. Daphne places some online advertising, screens the applicants, and submits those she approves to Millie. Along the way, Daphne meets Joe (Stephen Collins), the father of one applicant. Romance emerges and the film comes to a delightful though expected conclusion. This scene starts after Daphne answers her cellular telephone and says the person has the wrong number. A conversation about Millie’s love life, Daphne’s love life, and boundaries ensues. Video Case Discussion Questions and Suggested Answers The chapter discusses the difference between positive and negative leadership styles. Which style does Daphne use? Explain your answer. Daphne tries to come across in a positive and loving manner, yet she puts a lot more emphasis on her fears about the “penalties” Millie will face if she doesn’t find the perfect husband. She also insults and criticizes Millie along the way. Ultimately, Daphne’s approach can best be described as a negative leadership style. Of the five types of power described in the chapter, which type or types of power does Daphne have over Millie? Explain your answer. Some students may feel that Daphne holds legitimate power over Millie because she is Millie’s mother and deserves a high degree of respect. Additionally, this scene suggests that, despite their frustration with each other, there is genuine love, respect, and concern between the two. Daphne’s desire to make Millie happy could be seen as appealing, even charismatic. Thus, some students may feel that Daphne has referent power over Millie. Review the discussion of emotional intelligence earlier in this chapter. Assess both Daphne and Millie on the four parts of emotional intelligence. Both Daphne and Millie know who they are (self-awareness), although Daphne shows less of this quality than Millie. It is not clear from the scene or elsewhere in the film about Daphne’s sense of self in social interactions. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The self-management part of emotional intelligence appears moderate to high for both people with Millie likely lower than her mother. Millie’s behavior in this scene suggests she loses control at times, which creates some difficulties for herself and her relationships. Millie is high on social awareness while her mother is moderate to low. Millie understands her mother’s view of how she should behave. Daphne, on the other hand, seems to be unable to read Millie’s emotions and reactions, and thus does not adapt her behavior into a more constructive and helpful approach. Relationship management is the one dimension that is hard to assess from this single and strongly played scene. The mother-daughter relationship, of course, has many forms of relationship management. Film director Michael Lehman chose a frantic approach to this scene to establish an obsessive-compulsive quality to Daphne’s personality and to render a comical result. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.