Chapter 14
Leadership
MGMT3
Chuck Williams
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1
Copyright ©2011 by Cengage Learning. All rights reserved
What Is Leadership?
After reading these sections,
you should be able to:
1. explain what leadership is.
2. describe who leaders are and what effective
leaders do.
2
Copyright ©2011 by Cengage Learning. All rights reserved
Leadership
Differences
between
Leaders and
Managers
Substitutes
for
Leadership
1
3
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Leaders versus Managers
MANAGERS
LEADERS
Do things right
Status quo
Short-term
Means
Builders
Problem solving
Do the right thing
Change
Long-term
Ends
Architects
Inspiring & motivating
1
4
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Leaders versus Managers
American organizations (and probably those in much
of the rest of the industrialized world) are underled
and overmanaged. They do not pay enough
attention to doing the right thing, while they
pay too much attention to doing things right.
- Warren Bennis
1
5
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Beyond the Book
Substitutes for Leadership
• Leadership substitutes
– subordinate, task, or organizational characteristics
that make leaders redundant or unnecessary
• Leadership neutralizers
– subordinate, task, or organizational characteristics
that interfere with a leader’s actions
• Leaders don’t always matter
– Poor leadership is not the cause of every
organizational crisis
6
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Leadership Substitutes
and Neutralizers
Characteristic
Subordinate Characteristics
 Ability, experience, training, knowledge
 Need for independence
 Professional orientation
 Indifference toward organizational rewards
Task Characteristics
 Unambiguous and routine tasks
 Performance feedback provided by the
work itself
 Intrinsically satisfying work
Organizational Characteristics
 Formalization, meaning specific plans,
goals, and areas of responsibility
 Inflexibility, meaning rigid, unbending rules
and procedures
 Highly specified staff functions
 Cohesive work groups
 Organizational rewards beyond a leader's
control
 Spatial distance between supervisors and
subordinates
Beyond the Book
People-Related
Leadership Behaviors
Task-Related
Leadership Behaviors
Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Substitute, Neutralize
Neutralize
No effect
No effect
Substitute, Neutralize
Substitute, Neutralize
Substitute, Neutralize
Neutralize
No effect
Neutralize
No effect
Neutralize
No effect
Substitute, Neutralize
Neutralize
Neutralize
Substitute, Neutralize
Neutralize
Neutralize
Neutralize
7
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Who Leaders Are and
What Leaders Do
Leadership
Traits
Leadership
Behavior
2
8
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Leadership Behaviors
Initiating Structure
The degree to which a leader structures the roles
of followers by setting goals, giving directions,
setting deadlines, and assigning tasks.
Consideration
The extent to which a leader is friendly,
approachable, and supportive and shows concern
for employees.
2.2
9
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Beyond the Book
Providing Security
Jeffrey Katzenberg, CEO of DreamWorks,
has realized that making employees feel
secure has become increasingly important,
especially in the last two years. If people
don’t feel secure, they won’t be willing to
take risks, which is crucial to success in the
film business. Katzenberg works hard to
communicate this to his employees—that
their jobs are safe, that the company is
growing (300 hires in the last year), and
that they have a strong financial position.
What kind of leadership behavior is
Katzenberg demonstrating here?
Source: J. Katzenberg, “Corner Office: The Benefit of a Boot Out the Door”, interview by A. Bryant, The New York Times, 7 November 2009.
http://www.nytimes.com/2009/11/08/business/08corner.html?pagewanted=1 (accessed 11/10/2009).
Copyright ©2011 by Cengage Learning. All rights reserved
10
Blake/Moulton Leadership Grid
High 9
1,9
Concern for People
8
Team 9,9
Management
7
6
Middle of the
5,5
Road
5,5
5
4
3
2
Low 1
Impoverished
1,1 Management
1
2.2
Country Club
Management
Low
2
3
4
AuthorityCompliance
5
6
7
Concern for Production
8
9,1
9
High
11
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Situational Approaches to
Leadership
After reading these sections,
you should be able to:
3.
explain Fiedler’s contingency theory.
4.
describe how path-goal theory works.
5.
explain the normative decision theory.
12
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Putting Leaders in the Right Situation:
Fiedler’s Contingency Theory
Situational
Favorableness
Group
Performance
=
Leadership
Style
3
13
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Putting Leaders in the Right Situation:
Fiedler’s Contingency Theory
Least Preferred Coworker
Situational Favorableness
Matching Leadership Styles
to Situations
3
14
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Leadership Style:
Least Preferred Coworker
• Leadership style is the way a leader
generally behaves toward followers
– seen as stable and difficult to change
• Style is measured by the Least Preferred
Co-worker scale (LPC)
– relationship-oriented
– task-oriented
3.1
15
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Leadership Style:
Least Preferred Coworker Scale
How would you rank your least-preferred coworker? He or she is:
3.1
16
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Situational Favorableness
Situational Favorableness
The degree to which a particular situation either
permits or denies a leader the chance to influence
the behavior of group members.
Three factors:
 Leader-member relations
 Task structure
 Position power
3.2
17
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Situational Favorableness
3.2
18
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Matching Leadership Styles to
Situations
3.3
19
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Path-Goal Theory
Path-Goal Theory
A leadership theory that states that leaders can
increase subordinate satisfaction and performance by
clarifying and clearing the paths to goals and by
increasing the number and kinds of rewards available
for goal attainment.
4
20
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How to Apply Path-Goal Theory
Clarify paths to goals
Clear paths to goals by solving problems
and removing roadblocks
Increase the number and kinds of rewards
available for goal attainment
Do things that satisfy followers today or will
lead to future rewards or satisfaction
4
Offer followers something unique and valuable
beyond what they’re experiencing
21
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Path-Goal Theory
Subordinate Contingencies
•Perceived Ability
•Locus of Control
•Experience
Leadership Styles
•Directive
•Supportive
•Participative
•Achievement-Oriented
Outcomes
•Subordinate satisfaction
•Subordinate performance
Environmental Contingencies
•Task Structure
•Formal Authority System
•Primary Work Group
4
22
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Adapting Leader Behavior:
Path-Goal Theory
Leadership
Styles
Subordinate
and
Environmental
Contingencies
Outcomes
4
23
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Leadership Styles
• Directive
– clarifying expectations and guidelines
• Supportive
– being friendly and approachable
• Participative
– allowing input on decisions
4.1
• Achievement-Oriented
– setting challenging goals
24
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Subordinate and
Environmental Contingencies
Subordinate
Environmental
 Perceived ability
 Task structure
 Locus of control
 Formal authority
system
 Experience
 Primary work group
4.2
25
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Beyond the Book
Control What You Can
Wendy Kopp, founder and CEO of Teach
for America which provides teachers for
urban and rural public schools, has found
that the most predictive trait of success in
her teachers is an internal locus of control.
As she says, there are many factors that
could be blamed for student difficulties—
kids, kids’ families, the education system—
but the successful teachers will figure out
what they can control within the given
environment and own it and use it to their
advantage.
Source: W. Kopp, “Corner Office: Charisma? To Her It’s Overrated”, interview by A. Bryant, The New York Times, 4 July 2009.
http://www.nytimes.com/2009/07/05/business/05corner.html (accessed 11/2/2009).
Copyright ©2011 by Cengage Learning. All rights reserved
26
Path Goal Theory:
When to Use Leadership Styles








4.2


Directive Leadership
Unstructured tasks
Inexperienced workers
Workers with low perceived ability
Workers with external locus of
control
Unclear formal authority system




Supportive Leadership
Structured, simple, repetitive
tasks
Stressful, frustrating tasks
When workers lack confidence
Clear formal authority system
Participative Leadership
Achievement-Oriented Leadership
Experienced workers
 Unchallenging tasks
Workers with high perceived ability
Workers with internal locus of
control
Workers not satisfied with rewards
Complex tasks
27
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Beyond the Book
Adapting Leadership Behavior
Hersey and Blanchard’s Situational Leadership Theory
Worker
Readiness
Leadership
Styles
28
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Beyond the Book
Worker Readiness
• The ability and willingness to take responsibility
for directing one’s behavior at work
• Components of worker readiness:
– Job readiness
– Psychological readiness
29
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Worker Readiness
R4
confident
willing
able
R3
insecure
not willing
able
R2
confident
willing
not able
R1
insecure
not able
not willing
Beyond the Book
30
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Beyond the Book
Leadership Styles
Telling
(R1)
high task behavior
low relationship behavior
Selling
(R2)
high task behavior
high relationship behavior
Participating
(R3)
low task behavior
high relationship behavior
Delegating
(R4)
low task behavior
low relationship behavior
31
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Normative Decision Theory
Decision
Styles
Decision
Quality and
Acceptance
5
32
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Decision Styles
Leader accepts any decision
supported by the entire group
Leader solves the problem
or makes the decision
AI
Solve the
problem
yourself
AII
Obtain
information.
Select a
solution
yourself.
CI
CII
GII
Share problem,
get ideas from
individuals.
Select a
solution
yourself.
Share problem
with group,
get ideas.
Make decision,
which may or
may not reflect
input.
Share problem
with group.
Together try
to reach a
solution.
Leader acts as
facilitator.
5.1
33
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• Using the right amount of employee participation:
– improves decision quality
– improves acceptance
• Decision tree helps leader identify optimal level of
participation
5.2
34
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© Jacob Hellbach/iStockphoto.com
Decision Quality and
Acceptance
Normative Theory Decision Rules
to Increase Decision Quality

Quality Rule
 If the quality of the decision is important, then don't use an autocratic
decision style.

Leader Information Rule
 If the quality of the decision is important, and if the leader doesn't
have enough information to make the decision on his or her own,
then don't use an autocratic decision style.

Subordinate Information Rule
 If the quality of the decision is important, and if the subordinates
don't have enough information to make the decision themselves, then
don't use a group decision style.
5.2
35
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Normative Theory Decision Rules
to Increase Decision Quality

Goal Congruence Rule
 If the quality of the decision is important, and subordinates' goals are
different from the organization's goals, then don't use a group decision
style.

Problem Structure Rule
 If the quality of the decision is important, the leader doesn't have
enough information to make the decision on his or her own, and the
problem is unstructured, then don't use an autocratic decision style.
5.2
36
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Normative Theory Decision Rules
to Increase Decision Acceptance

Commitment Probability Rule
 If having subordinates accept and commit to the decision is
important, then don't use an autocratic decision style

Subordinate Conflict Rule
 If having subordinates accept the decision is important and
critical to successful implementation, and if subordinates are
likely to disagree or end up in conflict over the decision, then
don't use an autocratic or consultative decision style

5.2
Commitment Requirement Rule
 If having subordinates accept the decision is absolutely
required for successful implementation, and if subordinates
share the organization's goals, then don't use an autocratic or
consultative style
37
Copyright ©2011 by Cengage Learning. All rights reserved
Strategic Leadership
After reading this section,
you should be able to:
6. explain how visionary leadership
(i.e., charismatic or transformational
leadership) helps leaders achieve strategic
leadership.
38
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Visionary Leadership
Charismatic
Leadership
Transformational
Leadership
6
39
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Charismatic Leadership
• Creates an exceptionally strong relationship
between leader and follower
• Charismatic leaders:
–
–
–
–
articulate a clear vision based on values
model values consistent with vision
communicate high performance expectations
display confidence in followers’ abilities
6.1
40
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Beyond the Book
Building a Cathedral
Alan Mulally, CEO of Ford Motor Co., tells the following
story: When three bricklayers are asked what they are
doing, the first answers, “I’m making a living laying these
bricks.” The second answers, “I’m learning about the
profession of bricklaying so I can be the best bricklayer
ever.” Finally, the third answers, “I’m helping to build a
cathedral.” As a leader, Mulally believes, you need to
help people understand the broader vision behind what
they are doing. As people better understand the broader
vision, they will be more motivated and unified in working
towards it.
Source: A. Mulally, “Corner Office: Planes, Cars and Cathedrals”, interview by A. Bryant, The New York Times, 5 September 2009.
http://www.nytimes.com/2009/09/06/business/06corner.html (accessed 10/23/2009).
Copyright ©2011 by Cengage Learning. All rights reserved
41
Kinds of Charismatic Leaders
• Ethical Charismatics
–
–
–
–
–
provide developmental opportunities
are open to positive and negative feedback
recognize others’ contributions
share information
show concern for the interests of the group
• Unethical Charismatics
6.1
–
–
–
–
control and manipulate followers
do what is best for themselves
only want positive feedback
motivated by self-interest
42
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Ethical and Unethical
Charismatic Leaders
Charismatic Leader
Behaviors
Ethical Charismatics
Exercising Power
Use power to serve others
Creating the vision
Allow followers to help develop the vision
Communicating with
followers
Engage in two-way communication
Accepting feedback
Are open to feedback
Stimulating followers
Want followers to think and to question the
status quo
Developing followers
Focus on developing followers
Living by moral
standards
Exhibit three virtues: courage, sense of
fairness, integrity
6.1
43
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Ethical and Unethical
Charismatic Leaders
Charismatic Leader
Behaviors
Unethical Charismatics
Exercising Power
Use power to dominate others
Creating the vision
Sole provider of vision
Communicating with
followers
Engage in one-way communication, not open
to input from others
Accepting feedback
Have an inflated ego, avoid candid feedback
Stimulating followers
Don’t want followers to think, prefer uncritical
acceptance of own ideas
Developing followers
Insensitive to followers’ needs
Living by moral
standards
Follow standards only if they satisfy
immediate self interests
6.1
44
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Reducing Risks of
Unethical Charismatics
1. Have a clearly written code of
conduct
2. Recruit, select, and promote
managers with high ethical standards
3. Train leaders how to value, seek, and
used diverse points of view
4. Train leaders and subordinates
regarding ethical leader behaviors
5. Reward those who exhibit ethical
behaviors
6.1
45
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Transformational Leadership
• Generates awareness and
acceptance of group’s
purpose and mission
• Gets followers to
accomplish more than they
intended or thought
possible
6.2
46
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Components of
Transformational Leadership
1.
2.
3.
4.
Charisma or idealized influence
Inspirational motivation
Intellectual stimulation
Individualized consideration
6.2
47
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