Chapter 13
Leadership
Learning Objectives
After reading this chapter, you should be able to:
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Distinguish between management and leadership.
Recognize how leaders use different power bases to
exercise influence.
Identify effective leader characteristics based on
person-based theories and recognize the limitations
of these approaches.
Recognize how different contexts call for different
leadership qualities, using situational theories of
leadership.
Identify ways to engender leadership through
organizational characteristics or employees by
applying dispersed theories of leadership.
Understand, through the exchange theories, how to
implement leadership through relationships with
others.
Describe and apply the concept of authentic
leadership.
What Makes a Leader Effective?
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Ability to influence other people
Have a vision – ideas or
objectives that clarify to others
where they should be headed
“Sell” the vision by articulating
it in a compelling and
persuasive manner
Encourage followers to
establish appropriate
implementation activities to
support the accomplishment of
the vision
Compare
Leadership
Management
Contrast
Practices Associated with
Leadership by Managers

Planning and
organizing

Supporting

Managing conflict and
team building
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Problem solving

Clarifying
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Networking

Informing
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Delegating
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Monitoring
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Motivating
Developing and
mentoring
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Consulting
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Rewarding
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Recognizing
Power
Coercive
Power
Reward
Power
Legitimate
Power
Expert Power
Referent
Power
Leadership: Traditional
Explanations
Person-based Theories
Situational Theories
Dispersed Theories
Exchange Theories
Trait Theory
“Can-Do”
Attitude
Desire
to Lead
SelfConfidence
Honesty
and Integrity
Ambition
and Energy
Intelligence
Prentice Hall, 2001
Chapter 11
8
Behavioral Theories
Initiating Structure
Ohio State
Consideration
University of
Michigan
Prentice Hall, 2001
Employee-Orientation
Production-Orientation
Chapter 11
9
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
Prentice Hall, 2001
Chapter 11
10
Findings of the Fiedler Model
Performance
Good
Poor
Relationship-Oriented
Task-Oriented
Favorable
Category
• Leader-Member
Relations
• Task Structure
• Position Power
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
The Path-Goal Framework
Environmental
Contingencies
Leader
Behavior
Outcomes
Subordinate
Contingencies
Prentice Hall, 2001
Chapter 11
12
Dispersed Theories

Substitute Leadership:attempts
to identify workplace
characteristics that can substitute
for leadership or neutralize
efforts made by a leader
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Self-Leadership: leadership that
stresses the individual
responsibility of employees to
develop their own work priorities
aligned with organizational goals
Characteristics of Traditional and
Self-Managing Behaviors:
Traditional Leader Behaviors
Self-Managing Leader Behaviors
Organization – Structures own and subordinates Encourages self-reward
work
Domination – Restricts or limits the discretion of
Encourages self-observation
Production – Sets standards for task
Encourages self-goal setting
Recognition – Expresses approval or
Encourages self-criticism
Integration – Promotes group cohesion and
Encourages self-rehearsal
Communication – Provides, seeks, and
Acts as a role model by exhibiting appropriate
behavior
individuals or groups
performance
disapproval of behavior
reduces group conflict
exchanges information with group members
Fosters the development of a culture that
nourishes and supports self-leadership
Exchange Theories
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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
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Transformational Leadership: leaders who
revitalize organizations by instilling in
followers the ability to question standard
modes of operation
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Authentic leadership: An approach that
emphasizes the importance of a positive
directive force, particularly in an
environment of increasing complexity,
change, and uncertainty
Characteristics of Transactional
and Transformational Leaders
Transactional Leader
Transformational Leader
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Contingent reward
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Charisma
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Management by
exception (active)
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Inspiration
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Intellectual
stimulation
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Individualized
consideration
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Management by
exception (passive)
Laissez-Faire
Characteristics of
Authentic Leaders
Value Driven
 No Gap between Internal Values and
Actions
 Transparent
 Influence by Inspiration
 Developmental Focus
 Moral Capacity
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Applications of Management
Perspectives—For the Manager
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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
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Both management and leadership skills can be positive for
employees and the organization; they will also bode well for
your own career.
Discussion Questions
Do you agree that managers and leaders
are different kinds of people? Why or why
not?
 Some people argue that organizations
need to put in place mechanisms to
prevent informal leaders from imposing
their own agendas on others. Do you
agree? Why or why not?
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Video – Pike Place Fish Market
What leadership skills are illustrated?
 What must leader have?
 What did owner have to learn?
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