Introduction to Leadership
Leadership: Overview of Topics

Overview
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What is leadership and why
does it matter?
What leaders and managers
do
Are leaders and managers
different ?
Trait approaches
Power
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Power and influence
Politics
Impression management
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The ethical bases of power
Contingency
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The Managerial Grid
Blanchard & Hersey
LMX
Substitutes for leadership
Self-leadership
“Superleadership”
Charisma and
transformational leadership
Leadership, culture and
gender
Dysfunctional leadership
Leadership: Definitions & Overview

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“Ability to influence a group toward the
achievement of goals”
Requires a leader and follower(s)
Different from management??
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–

Leadership = doing the right things
Management = doing things right
Successful vs. effective managers
What is Management?



A universal activity that uses resources to
attain organizational goals in an effective and
efficient manner through planning, organizing,
leading, and controlling organizational
resources
Getting work done through other people
A manager integrates and coordinates the work
of other people
What is Leadership?

“The process of influencing others to
understand and agree about what needs to be
done and how it can be done effectively, and
the process of facilitating individual and
collective efforts to accomplish the shared
objectives”

A role -- a process
Why Leadership?

More complex external environment
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
Technology
Global environment
Knowledge-based economy
Changed people
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More education
Less security
The Management Process
Planning
Select goals and
ways to attain them
Controlling
Organizing
Monitor activities
and make corrections
Assign responsibility
for task accomplishment
Leading
Use influence to
motivate employees
The Leadership Process
Leader traits
and skills
Leader
behavior
Influence
processes
Situational
variables
Follower
attitudes
and behaviors
Performance
outcomes
Managers vs. Leaders
Managers
 Rational, problemsolving, control
 React and respond
 Interact rationally with
other people
Leaders
 “Mystical”, define
problems, inspire
 Vision, proactive
 Emotional relationship
with other people
Leadership: Trait Approaches
Trait Approaches

A 1991 study shows strong evidence for these traits
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Drive: achievement, ambition, energy, tenacity, and initiative
Leadership motivation: personalized vs. socialized
Honesty and integrity: truthful, ethical, principled
Self-Confidence: including emotional stability
Cognitive ability
Knowledge of the business
Weaker support was found for:
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Charisma
Creativity and originality
Flexibility
The Need for Power

Personalized
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
Desire for power for its own sake
Power to fulfill personal needs
Socialized
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Desire for power to accomplish goals
Power to fulfill needs of others (and self, too)
Ghiselli’s Trait Research

Important
– Supervisory ability
– Need for achievement
– Intelligence
– Need for self-actualization
– Self-assurance
– Decisiveness

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Moderately important
– Low need for security
– Initiative
– Low need for financial
rewards
– Decisiveness
Unimportant
– Masculinity / femininity
Another Way To Look At It

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Personal characteristics
Behavior
Behavior
Situation
Situation
Person
Power
Power, Influence,
Politics and
Impression
Management
Power and Influence
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Defined
–
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Power is the underlying ability, used or not, that a person has
to influence the thoughts or actions of another person
Sources of power and influence
Results or consequences
–
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Commitment / compliance / resistance
Instrumental compliance / internalization / personal
identification
How Power is Gained

Social exchange
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
Leadership based on exchange of material and psychological
benefits
Leader gains (or loses) power based on benefits to followers
Strategic contingencies
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Looks at units, not individuals
Power based on
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Expertise
Position within organization
Unique expertise (can unit be replaced)
Sources of Power
Expert
Referent
Coercive
Rewar
d
Legitimate
Charismatic
Associative
Informational
Types of Power
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Based on original French and Raven work (1959)
Types of power
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Legitimate
Reward
Coercive
Information
Referent
Expert
Associative
Position
Person
Bases of Power
Type
Basis
Coercive
Punishment
Reward
Reward (tangible or intangible)
Legitimate
Position
Referent
Liking, respect
Expert
Knowledge and expertise
Informational
Insider information (how-to)
Charismatic
Communicating desire to achieve a
vision; inspiring others
Charismatic Power
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Self-confidence
Vision
Ability to articulate the vision
Strong convictions about the vision
Behavior that is out of the ordinary
Change agent
Environmental sensitivity
Power: Where Effective
Type of
Power
Effective Directions
Downward
Lateral
Upward
Referent
Yes
Yes
Yes
Expert
Yes
Yes
Yes
Legitimate
Yes
Maybe
No
Reward
Yes
Unlikely
No
Coercive
Yes
No
No
Information
Yes
Yes
Yes
Responses to the Use of Power
Type of
Power
Response by Influence Target
Commitment Compliance
Resistance
Referent
Likely
Possible
Possible
Expert
Likely
Possible
Possible
Legitimate
Possible
Likely
Possible
Reward
Possible
Likely
Possible
Coercive
Unlikely
Possible
Likely
Charismatic
Likely
Possible
Possible
Information
Likely
Possible
Possible
Power: Good or Bad ???
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How much control is ethical ?
Coercive power: sometimes necessary ?
Can too much power (expert, charismatic) lead
to downfall through arrogance ?
Can too much power lead to
micromanagement or dependent subordinates
?
The Limits of Power

Is power unlimited?
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Does power transfer from one setting to another?
The entrepreneurial transition
What about the Zone of Indifference?
Should power be unlimited?
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“Power corrupts…”
Ethical implications of control over others
The Zone of Indifference
OBEY?
Inside zone of
indifference:
Normal
inducements
sufficient
REQUESTED ACTION
No
Work Sundays
No
Shop during lunch hour for boss
?
Make coffee for the office
Yes
Work 40 hours in the week
Yes
Type letters
Yes
Perform filing
Yes
Work occasional paid overtime
Outside zone of
indifference:
Extraordinary
inducements
required
?
Bring sandwiches to boss for lunch
No
Type school papers for boss’s kids
No
“Fudge” boss’s expense accounts
Influence Behaviors
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Focus here on what you actually do – behaviors
Influence tactics
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Rational persuasion (logic)
Apprising (“What’s in it for you”)
Inspirational appeals (values)
Consultation (buy-in)
Exchange (“you scratch my back…”)
Collaboration (“I’ll help you with it”)
Personal appeals (“Do me a favor”)
Ingratiation (praise and flattery)
Legitimating tactics
Pressure
Coalition (“Joe said he’d do it”)
Source: Yukl & Tracey, 1992
Influence Tactics
Comparison to
Power
Tactic
Definition
Rational persuasion
Bring in logic and facts
Inspirational Appeal
Call on values; encouragement
Consultation
Ask for participation
Ingratiation
Buttering up (inducing a
favorable mood)
Exchange
What’s in it for you
Reward
Personal Appeal
Friendship and loyalty
Referent
Coalition
Everyone else is doing it
Legitimating
Draw on authority
Pressure
Threats or coercion
Expert
Charismatic
Legitimate
Coercive
Source: Yukl & Tracey, 1992
Directions of Influence
Tactic
Best Direction
Commitment ?
Rational persuasion

Yes
Inspirational Appeal

Yes
Consultation

Yes
Ingratiation
 or 
Yes
Exchange
; least 
Yes

Yes
least 
No
Legitimating

Negative
Pressure

Negative
Personal Appeal
Coalition
Politics
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When you don’t have authority……
Political skill:
“An interpersonal style…construct that combines
social astuteness with the ability to relate well, and
other wise demonstrate situationally appropriate
behavior in a disarmingly charming and engaging
manner that inspires confidence, trust, sincerity and
genuineness
Political Skill
Tacit
knowledge
Social
intelligence
Self
monitoring
Emotional
intelligence
Ego
resiliency
Social selfefficacy
Niccolò Machiavelli
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1469-1527
The Prince
Effective leadership in a hostile environment
Bad reputation today
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Machiavellian = manipulative and unethical behavior
But, a very pragmatic approach to leadership
What actually occurred and what actually worked:
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Examples (III, IV)
…the gulf between how one should live and how one does live is so
wide that a man who neglects what is actually done for what should
be done learns the way to self-destruction rather than selfpreservation (XV)
What Machiavelli Actually Advised

The end -- stable rule -- justifies the means:
…a prince, and especially a new prince cannot observe all those
things which give men a reputation for virtue, because in order
to maintain his state, he is often forced to act in defiance of
good faith, of charity, of kindness, of religion (XVIII)

Importance of good advice:
…If a prince has the discernment to recognize the good or bad in
what another says or does, ever though he has no acumen
himself, he can see when his minister’s actions are good or
bad…(XXII)
The Ethical Bases of Leadership
Oprah, Bill Gates and Ethics
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Paradox #1 – leader has opinions and wants to
make them known, to change the world:
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Paradox #2 – change the world vs. money
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But – ethically, does leader give people choice, the
freedom to accept or not
Stay true to own values
The leader’s responsibility
But – do
values need
to be “good”?
Leaders and Ethical Decisions
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The dilemma: when there is no right answer
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The choice is between competing – yet both
important – values
Must blend idealism and realism
What is the role of the leader?
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Focus on basic, core values
Serve as a role model
Take charge to lead group to action
Servant Leadership
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The leader’s role is to “nurture, defend and empower
followers”
The leader is the moral role model
The leader is responsible for providing meaningful
work and caring for the weak
Values:
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Honesty
Openness
Trust
Charismatic Leadership and Ethics
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Do we know what is best for other people?
Is it right to change others’ beliefs and values?
Situational Approaches
Situational Models
Situational Factors Affecting
Leadership (1)
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External environment
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Stable vs. turbulent (complexity and dynamism)
Political / social pressures
Economic conditions (“munificent” environment)
Social context
Firm ownership
The organization
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Structure (centralization, span of control)
Culture
Industry
Situational Factors Affecting
Leadership (2)
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Follower attributes
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Competency
Motivation
Group attributes
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Size
Group dynamics (cohesion, norms)
Situational Factors Affecting
Leadership (3)
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The task
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Leader’s task competence
Task complexity
Task structure
Interdependence
Goal clarity
Other factors
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Environmental stress (role overload, role ambiguity and role
conflict)
Panic and disasters
Ohio State Model
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Concern for people
Concern for the job
Are they mutually exclusive?
The Managerial Grid
9
Concern for
People
Country Club
5
Team
Management
Middle of the Road
Impoverished
Management
1
1
Compliance
with Authority
5
Concern for Production
9
Situational Leadership
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Blanchard & Hersey
Different people have different needs
One-style-fits-all leadership doesn’t work
Also, there’s research evidence that the ability
to use multiple styles is associated with more
effective managers
Leadership Styles
Participate
Supportive
Behavior
High
Low
Sell
S3
S2
S4
S1
Delegate
Tell
Low
High
Task Behavior
Development Levels
High
Medium
Low
High
Competence
High
Competence
Some
Competence
Low
Competence
High
commitment
Variable
commitment
Low
Commitment
High
Commitment
Developed
D4
Developing
D3
D2
D1
LMX
(Leader-Member Exchange)
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Moves to treating each follower as an individual, rather than all
followers as a group [variance in Average Leadership Style is not
error]
Leadership as social exchange
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Original roles / exchanges imperfectly defined
Final roles based on unstructured negotiation between leader and
individual followers
Relationships can be of two types:
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Standard leader-follower relationship
“Special exchange relationships” with trusted followers
Relationships
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Low exchange (outer circle)
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Low mutual influence
Followers and leader fulfill standard role requirements – formal work
requirements, formal rewards
High exchange (inner circle)
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Follower receives special status, benefits, influence, privileges
Leader engages in more person-oriented behavior, less task-oriented
behavior
In return, followers are more committed, loyal, hard working
Leader and followers view themselves as having a “common fate”
Exchange viewed as equitable by both parties
LMX Life Cycle
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Relationships stable
once formed
Development process:
Leader and follower
move past selfinterest to mutual
commitment and
respect
Testing Phase
Development
Phase
Mature
Stage
LMX - Antecedents
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Follower attributes
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Similarity to leader
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Personal compatibility
Values and attitudes
Leader is in an LMX
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Competence
Dependability
Perceived contributions
Modeling effects
Leader has resources to establish
LMX with his subordinates
The relationship
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Mutual liking
Trust
Results of LMX

Liden & Graen (1980) found that:
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LMX followers assumed more responsibility
Contributed more to unit
Received higher performance reviews from
manager (contamination ??)
With independent criteria, results are mixed
Substitutes for Leadership
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Substitutes
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Characteristics of task, subordinates, or setting
Make leader action unnecessary
Neutralizers
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Leader
Action
Characteristics of subordinates or setting
Negate or nullify leader’s actions
Substitutes
Neutralizers
Subordinate
Performance
Substitutes and Neutralizers
S
N
Subordinate Characteristics
Experience,
ability, training

Professional
orientation

Indifference

toward rewards
Task Characteristics
Structured,
Feedback
routine task
provided by task
Intrinsically
satisfying task
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Organization Characteristics
Cohesive
Low
work group

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position [legitimate] power
Formal
roles and procedures
Inflexible
rules and polices
Dispersed
work sites
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Evaluating the Theory
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Substitutes “makes sense”
Little theoretical basis for the substitutes and
neutralizers
Empirical research limited and results mixed
Charisma and Transformational
Leadership
Charismatic Power
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Self-confidence
Vision
Ability to articulate the vision
Strong convictions about the vision
Behavior that is out of the ordinary
Change agent
Environmental sensitivity
Charismatic Leaders
I know I have but
the body of a weak
and feeble woman;
but I have the
heart of a king,
and of a king of
England, too.
"Never give in--never, never, never, never,
in nothing great or small, large or petty,
never give in except to convictions of
honour and good sense. Never yield to
force; never yield to the apparently
overwhelming might of the enemy.''
Max Weber

Adapted theological concept of
charisma to leadership in general
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Extraordinariness bestowed by followers,
rather than God
Five requirements:
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Extraordinary gifts
A crisis
A radical solution to the crisis
Followers who believe in a link, through
leader, to transcendent powers
Validation through repeated success
Conger and Kanungo
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Charisma is attributed to leaders by followers
Depends on both leader attributes and the
situation
Leader behaviors
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Vision of change (within limits)
Self-sacrificing, risk-taking
Confidence
Environmental sensitivity
Other Approaches

The psychodynamic approach
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
Followers idolize or worship
charismatic leader
Leader takes on followers’
unexpressed guilt, fears, etc.
Social contagion
–
–
–
Personal identification with leader
Followers adopt symbols to set
themselves apart from others
Identification spreads in manner of
fashions or fads
Transformational and Transactional
Leadership


Can we adapt the behaviors of charismatic leaders to
the work setting?
Transactional leadership…..
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
Clarify task and role requirements
Provide structure and rewards
Meet subordinates’ social needs
Transformational leadership….
–
–
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Broadens and elevates subordinates’ interests
Promotes awareness and acceptance of a shared vision
Moves employees to pursue the best interests of the
organization
Becoming a Transformational Leader:
The Four I’s
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Idealized Influence
–
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Inspirational Motivation
–

Encouraging subordinates to challenge processes and
impart meaning to work
Intellectual Stimulation
–

Serving as a role model
Fostering subordinates’ sense of creativity and innovation
Individual Consideration
–
Attending and responding to individual needs
Source: Bass, 1998
Idealized Influence

Serving as a role model or example for
subordinates in order to earn their respect,
trust, and admiration
–
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–
Focusing on group needs: the “Greater Good”
Sharing risk and accountability
Consistently behaving morally and ethically: “Doing
the right things”
Inspirational Motivation

Encouraging subordinates to challenge
processes and impart meaning to work;
involves:
–
–
Communicating a vision of a desirable future to
subordinates
Involving subordinates in the vision to share
ownership
Intellectual Stimulation

Fostering subordinates’ senses of creativity
and innovation; involves:
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–
–
Questioning assumptions and re-framing questions
Soliciting creative ideas by participation in the
decision-making process
Never criticizing subordinates and their ideas
Individual Consideration

Attending and responding to individual needs;
involves:
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–
–
Active listening
Managing by Walking Around (MBWA)
Delegating to develop employees
Another Approach

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

Focusing attention on specific issues of concern,
concentrating on analysis, problem solving, and action.
Communicating with empathy and sensitivity.
Demonstrating consistency and trustworthiness by
one's behavior, being honest, sticking with a decision,
and following through on decisions.
Expressing active concern for people including one's
self, thus modeling self-regard, and reinforcing feelings
of self-worth in others.
Popular Approaches:
Self-Management



Based on commitment, not control
Individuals mange own decisions, take responsibility
for outcomes
Manz & Sims (1991) – “SuperLeadership”
–
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“Strong Man” – makes things happen
“Transactor” – rewards performance
“Visionary Hero” – larger than life vision
“SuperLeader” – unleashes followers’ powers
This is one of the “Popular Books”
Becoming a SuperLeader
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
Become a self-leader
Model self-leadership
Encourage subordinates to set own goals
Create positive thought patterns (build self-efficacy)
Develop self leadership through rewards and
constructive criticism
Promote teamwork (self-managing teams)
Build a self led culture
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–
Policies and procedures
Symbolic acts
Another Popular Approach:
The Leadership Challenge

Challenge the Process
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Inspire a Shared Vision
–
–

Search for Opportunities
Experiment and Take
Risks
Envision the Future
Enlist Others
Enable Others to Act
–
–
Foster Collaboration
Strengthen Others

Model the Way
–
–

Set the Example
Plan Small Wins
Encourage the Heart
–
–
Recognize Individual
Contribution
Celebrate
Accomplishments
Kouzes & Posner (1995)
How To Become A
Transformational Leader

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Actively listen
Invite employee participation
Delegate
Encourage and reward creativity
“Walk Your Talk”
Dysfunctional Leadership
Fatal Flaws of Leaders Who Derail

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Insensitive to others
Aloof and arrogant
Betrayal of trust
Overly ambitious
Over-managing
Unable to think strategically
Unable to adapt to situations
Overly dependent on an advocate or mentor
Dysfunctional Leadership

Too much vision
–
Personal needs made paramount


–
Pyrrhic victory


–


Victory -- but at what cost?
Blind ambition, empire building
Chasing a vision before its time


Building a monument to themselves
Blind drive prevents seeing external environment
Failure to reality-test ideas
Blind to the market and what it wants
Manipulative management, impression management
Lack of administrative skills
Neurotic Leaders

Paranoid
–
–

Compulsive
–
–

–
Excessive expression of emotions and feelings, narcissistic, attention-seeker
Downfall – overreaction, surface thinking
Depressive
–
–

Perfectionist, detail-obsessed
Downfall – unwillingness to make decisions, focus on details at expense of overall
situation
Dramatic
–

Suspicious, untrusting
Downfall – reacting to threats that aren’t there
Low self-esteem, preoccupied with guilt, inadequacy, hopelessness
Downfall – Trouble concentrating, indecisive
Schizoid
–
–
Detached, uninvolved
Downfall – unable to empathize with others
When Great Goes Bad

For entrepreneurs, success and failure comes from:
–
–
–
–

Need for total control
Refusing to hear no
Ignoring the “experts”
Single-minded and stubborn
Charismatic leaders…..
–
–
Arrogance and narcissism
Believing their own myth
Leadership Downfall:
The Case of William
Agee and Mary
Cunningham
The Events
1979

Bill Agee (CEO of Bendix) hires recent HBS grad Mary Cunningham as
his Executive Assistant
1980


Mary Cunningham promoted to VP – Corporate Communications
Three months later, promoted to VP – Strategic Planning
Agee denies rumors of an affair
Cunningham leaves Bendix
1982

Cunningham and Agee marry
1989

Agee asked to lead Morrison Knudsen (large, but fading Idaho
construction company)
He attempts to salvage company with grand strategic changes
Neither Agee nor Cunningham attempt to fit in with MK culture or in
Boise




1995

Agee fired