Chapter 14
Leadership
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MGMT7
14-1 explain what leadership is
14-2 describe who leaders are and what effective leaders do
14-3 explain Fiedler’s contingency theory
14-4 describe how path-goal theory works
14-5 explain the normative decision theory
14-6 explain how visionary leadership (i.e., charismatic or
transformational leadership) helps leaders achieve
strategic leadership
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Leaders
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vs.
Doing the right thing
“What should we be doing?”
Vision, mission, goals, objectives
Challenge the status quo
Long-term view
Expand people’s options and choices
Inspire and motivate people to find their
own solutions
Concerned with ends, what gets done
Managers
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Doing things right
“How can we do what we’re already
doing better?”
Productivity and efficiency
Preservers of status quo
Short-term view
Limit others’ choices
Sole problems so that others can do
their work
More concerned with means, how
things get done
14-1
Leadership Traits
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Trait theory
– effective leaders possess a similar set of traits or characteristics
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Leaders are different from followers in:
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14-2
drive
desire to lead
honest/integrity
self-confidence
emotional stability
cognitive ability
knowledge of the business
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Leadership Behaviors
• Initiating structure
• Consideration
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14-2
Blake/Mouton Leadership Grid
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14-2
Fiedler’s Contingency Theory
In order to maximize work group
performance, leaders must be matched to
the right leadership situation.
•Leaders are effective when the work group they lead
performs well.
•Leaders are generally unable to change their
leadership styles, and they will be more effective when
their styles are matched to the proper situation.
•The favorableness of a situation permits the leader to
influence the behavior of group members.
14-3
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Least Preferred Coworker
• Leadership style = the way that leaders
generally behave toward their followers.
• Leadership styles are tied to leaders’
underlying needs and personalities.
• Relationship-oriented
• Task-oriented
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14-3
Situational Favorableness
The degree to which a particular situation
either permits or denies a leader the chance
to influence the behavior of group members.
•Leader-member relations
•Task structure
•Position power
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14-3
Situational Favorableness
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14-3
Matching Leadership Styles to Situations
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14-3
Leaders and Situations
• Fiedler assumes leaders to be incapable
of changing their leadership styles.
• The key − matching leaders to
situations…
• …or teaching leaders how to change
situational favorableness
14-3
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Path-Goal Theory
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.
14-4
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Path-Goal Theory
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14-4
Leadership Styles
• Directive
• Supportive
• Participative
• Achievement-oriented
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14-4
Subordinate Contingencies
• Perceived ability
• Experience
• Locus of control
– internals vs. externals
14-4
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Environmental Contingencies
• Task structure
• Formal authority system
• Primary work group
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14-4
Path-Goal Theory: When to Use Directive, Supportive,
Participative, or Achievement-Oriented Leadership
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14-4
Normative Decision Theory
Helps leaders decide how much employee
participation (from none to letting employees
make the entire decision) should be used when
making decisions.
14-5
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Normative Theory, Decisions Styles, and Levels
of Employee Participation
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14-5
Normative Theory Decision Rules
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14-5
Normative Decision Theory Tree for Determining the
Level of Participation in Decision Making
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14-5
Visionary Leadership
Creates a positive image of the future that
motivates organizational members and
provides direction for future planning and
goal setting.
14-6
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Charismatic Leadership
The behavioral tendencies and personal
characteristics of leaders that create an
exceptionally strong relationship with followers.
•Articulate a clear vision for the future that is based on
strongly held values or morals
•Model those values by acting in a way consistent with the
vision
•Communicate high performance expectations to followers
•Display confidence in followers’ abilities to achieve the vision
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14-6
Ethical and Unethical Charismatics
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14-6
Transformational Leadership
Generates awareness and acceptance of a
group’s purpose and mission and gets
employees to see beyond their own needs
and self interests for the good of the
group.
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14-6
Components of Transformational
Leadership
• Charismatic leadership or idealized
influence
• Inspirational motivation
• Intellectual stimulation
• Individualized consideration
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14-6
Transactional Leadership
Based on an exchange process in which
followers are rewarded for good
performance and punished for poor
performance.
14-6
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Camp Bow Wow
<click screenshot for video>
1. Does Camp Bow Wow CEO
Heidi Ganahl possess
qualities associated with
contemporary leadership?
2. In what way is Heidi
Ganahl’s leadership
charismatic and visionary?
Give examples.
3. Where does Heidi Ganahl’s
leadership fall on the
Leader-ship Grid discussed
in the chapter? Explain.
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