Chapter 8
Leadership
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Slides by Ralph R. Braithwaite
8-1
Cathy Benko at Deloitte
Consulting
Cathy Benko
• What are your reactions to Cathy Benko’s
•
story?
What are your thoughts about her quote at
the end of the section?
“Life is not fair. Not everybody starts at the
same place or has the same opportunities
and support someone else might have.
Don’t spend time wondering why you’re in
the position you’re in. Just get out there and
do as well as you can …”
Exploring Behavior in Action
8-2
The Strategic Importance of
Leadership
• Is there a link between leadership and
organizational performance?
• Do organizations do enough to develop
leadership skills?
• Strategic leadership involves developing a
vision, empowering associates, building
relationships, and building and maintaining a
high-involvement, high-performance
workforce.
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Knowledge Objectives
1. Define leadership and distinguish between formal and
informal leaders.
2. Explain the trait concept of leadership.
3. Describe major behavioral theories of leadership and
compare and contrast them.
4. Explain contingency theories of leadership and how
they relate leadership effectiveness to situational
factors.
5. Describe transformational leaders.
6. Discuss topics of current relevance, including leadermember exchange, servant leadership, gender effects
on leadership, and global differences in leadership.
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The Nature of Leadership
The process of providing general direction and
influencing individuals or groups to achieve
goals.
8-5
Effective Leaders
Warren Bennis
Effective leaders are concerned with
“doing the right things” rather than
“doing things right.” The right things
are:
• Creating and communicating a vision
of what the organization should be
• Communicating with and gaining
support of multiple constituencies
• Persisting in the desired direction
• Creating the appropriate culture and
obtaining the desired results
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Trait Theory of Leadership
Concept that certain traits help make people
effective leaders. Early research suggested that
the traits fell into three categories:
Physical
Characteristics
Personality
Characteristics
Some Criticism
Abilities
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Traits Associated with
Leadership
Energy
Appearance
Intelligence
Judgment
Verbal fluency
Achievement drive
Adaptability
Aggressiveness
Enthusiasm
Extroversion
Initiative
Insightfulness
Integrity
Persistence
Self-confidence
Sense of humor
Tolerance for stress
Interpersonal skills
Prestige
Tact
Adapted from Exhibit 8-1: Common Traits Associated with Leadership
8-8
Six Core Traits of Leadership
Drive
SelfConfidence
Leadership
Motivation
Integrity
Cognitive
Ability
Knowledge
of the
Domain
8-9
Reforming a “Rotten Apple”
What are your thoughts regarding the leadership
traits of Police Commissioner William Bratton?
What are your thoughts regarding the changes he
made that earned him the “Police Executive of the
20th Century” award and his face on the cover of
Time?
8-10
John F. Kennedy
Charismatic
leaders inspire
their followers to
change their needs and
visionary
quests,
Adolf Hitler values,
Winstonfollow
Churchill
Eleanor Roosevelt
and sacrifice their
own personal interests
for the good of
the cause.
Charisma
Martin Luther King, Jr. Ronald Reagan
Barbara Jordan
8-11
Behavioral Theories of
Leadership
University of
Michigan Studies
Ohio State
University Studies
8-12
University of Michigan Studies
• Job-Centered Leadership Style
• Employee tasks
• Methods for accomplishment
• Employee-Centered Leadership Style
Rensis Likert
• Employees’ personal needs
• Development of interpersonal relationships
Daniel Katz
Robert Kahn
8-13
Ohio State University Studies
• Consideration
• Leaders express friendship
• Develop mutual trust and respect
• Strong interpersonal relationships with staff
• Initiating Structure
• Well defined patterns of organization and
communication
•
•
•
•
Define procedures
Ralph Stogdill
Delineate relationships with staff
Emphasize goals and deadlines
Assign tasks and identify performance
expectations
Edwin Fleishman
8-14
Behavioral Theories of
Leadership
Consideration
High
A
D
(Employee-Centered Style)
B
C
(Job-Centered Style)
Low
High
Initiating Structure
Adapted from Exhibit 8-2: Comparison of Consideration and Initiating Structure with Employee- 8-15
Centered and Job-Centered Concepts
Contingency Theories of
Leadership
Fiedler’s Theory
Path-Goal Theory
8-16
Fiedler’s Contingency
Theory of Leadership
• Effectiveness depends on leader’s
Fred Fiedler
behavioral style and the situation
• Leader style measured by the LPC (least preferred
co-worker) scale
• Situational favorableness assessed by three
things:
Leader-member
relations
Task structure
Position power
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Fiedler’s LPC Scale
• Esteem for Least Preferred Co-Worker
Cooperative
___:___:___:___:___:___:___:___
8
Friendly
7
6
5
4
3
2
1
___:___:___:___:___:___:___:___
8
7
6
5
4
3
2
Uncooperative
Unfriendly
1
• Low LPC Score
• Negative adjectives
• Task-oriented leader (task achievement needs first)
• High LPC Score
• More positive adjectives
• Relationship-oriented leader (interpersonal
relationship needs first)
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Situational Characteristics
• Leader-Member Relations
• The degree to which a leader is respected,
accepted, and had friendly interpersonal
relationships with followers
• Task Structure
• The degree to which tasks are broken down into
easily understood steps or parts
• Position Power
• The degree to which a leader can reward, punish,
promote, or demote individuals in the unit or
organization
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Fiedler’s Contingency Theory
of Leadership Effectiveness
Adapted from Exhibit 8-3: Fiedler’s Contingency Model of Leadership Effectiveness
8-20
Path-Goal Leadership Theory
Leadership
Style
Contingency
Factors
Martin Evans
Robert House
Outcomes
8-21
Leader Effectiveness
Leadership can effect employees’ expectancies
and valences in several ways:
• Assign tasks that have high value (valence)
• Support employees’ efforts (effort → performance
expectancy)
• Tie rewards to goal accomplishment
(performance→reward instrumentality)
8-22
Path-Goal Leadership Theory
Leader Behaviors
• Directive Leadership
• Supportive Leadership
• Achievement-Oriented
Leadership
• Participative Leadership
Situational Factors
• Subordinate
•
Characteristics
Work Environment
Characteristics
Effectiveness of
leader behavior
depends on
these situational
factors
8-23
Interaction of Leader Behavior
and Situational Factors
Locus of
Control
Need for
Affiliation
Participative, Directive
or Supportive Leaders
Need for
Security
Need for
Growth
8-24
Interaction of Leader Behavior
and Situational Factors
Situational Factors
Subordinate
Characteristics
Characteristics of the
Work Environment
Internal locus of control
External locus of control
High need for affiliation
High need for security
Effective Leader
Behaviors
Participative
Directive
Supportive
Directive
Supportive
Directive
Strengths
Structured task
Unstructured task
High growth need
Complex task
Participative/
Achievement oriented
Low growth need
High growth need
Low growth need
Complex task
Simple task
Simple task
Directive
Supportive
Supportive
8-25
Adapted from Exhibit 8-4: Interaction of Leader Behavior and Situational Factors
Phil Jackson and
Leadership Success
Managerial
Advice
In terms of leadership, this means treating everyone
with the same care and respect you give yourself –
and trying to understand their reality without judgment.
When we can do that, we begin to see that we all
share human struggles, desires, and dreams.
• What are your thoughts about this quote?
• Have you ever worked for a leader who
•
Phil Jackson
approached the job like this?
Does the leadership style one uses need to
change based on each situation? Why?
• When would a leader want to be “invisible”?
8-26
Transactional Leadership
A leadership approach that is based on the
exchange relationship between followers and
leaders. It is characterized by contingent
behavior and active management-by-exception
behavior.
It is the degree to which leaders provide what
followers want in response to good performance.
8-27
Four Characteristics of
Transactional Leaders
• Understand what followers want to receive
from their work, and attempt to give them what
they desire, contingent on performance
• Clarify links between performance and reward
• Exchange rewards and promises of rewards
for specified performance levels
• Respond to the interests of followers only if
the followers are performing satisfactorily
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Transactional Leadership
Contingent Reward Behavior
• Clarify performance expectations
• Reward followers when expectations are met
Active Management-by-Exception Behavior
• Clarifies minimal performance standards
• Punishes when standards are not met
Consistently Monitors
Performance
8-29
Transformational Leadership
A leadership approach that involves motivating
followers to do more than expected, to
continuously develop and grow, to increase selfconfidence, and to place the interests of the unit
or organization before their own.
Involves charisma, intellectual stimulation, and
individual consideration.
8-30
Transformational Leaders Do
Three Things
Increase followers awareness of the
importance of pursuing a vision or mission
and the strategy required
Encourage followers to place the interests
of the unit, organization, or larger collective
before their own personal interests
Raise followers’ aspirations so they
continuously try to develop and improve
themselves while striving for higher levels
of accomplishment
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Characteristics
Intellectual
Stimulation
Charisma
Individual
Consideration
8-32
Charismatic Leaders
•
•
•
•
•
Inspire emotion and passion in followers
Get followers to identify with the leader
Display confidence
Communicate and live up to organizational values
Optimistic and enthusiastic
Charisma
8-33
Intellectual
Stimulation
Intellectual
Stimulation
• Increase the followers’ focus on problems and
develop new ways to solve them
• Reexamine assumptions
• Seek out different views
• Work to be innovative
8-34
Individual Consideration
• Support and develop followers to improve selfconfidence and a desire to improve performance
• Provide individualized attention to followers
• Focus on followers’ strengths
• Act as teachers and coaches
Individual
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Consideration
Common Behaviors
•
•
•
•
•
Articulate clear, appealing vision
Communicate the vision
Delegate significant authority and responsibility
•
•
•
•
Encourage open sharing of ideas and concerns
Encourage participative decision making
Promote cooperation and teamwork
Modify structure to promote key values and objectives
Eliminate unnecessary bureaucratic restraints
Provide coaching, training and developmental
experiences
8-36
Laissez-Faire Leadership
•
•
•
•
•
•
Opposite approach to transformational leadership
Not proactive
React only to failures or chronic problems
Avoid making decisions
Often absent or uninvolved in followers’ activities
Typically do not have positive outcomes
8-37
Commander Abrashoff
D. Michael Abrashoff
•
•
•
•
•
•
Demonstrated confidence
Focused on the vision
Linked tasks to the vision
Went beyond self-interest
Created intellectual stimulation
Displayed individual consideration
• Would you want to work for someone
•
USS Benfold
like Abrashoff? Why or why not?
Would his approach work in most work
environments? Why or why not?
8-38
Some Conclusions
• Leaders can be trained to exhibit
transformational leadership behaviors
• Leaders can display both transformational and
transactional leadership styles
• Both transformational and transactional
leadership can be positive
8-39
The Effects
Transformational
Leadership
Charisma
Intellectual Stimulation
Individual Consideration
Transactional
Leadership
Contingent Reward Behavior
Active Management by
Exception
Outcomes
Individual Outcomes
Unit/Organization Outcomes
Dynamism of the
task/organizational
environment
Adapted from Exhibit 8-5: The Effects of Transformational and Transactional Leadership
8-40
Ethical Leadership? Authentic
Leadership!
Thoughts?
Dennis Kozlowski
Experiencing
Strategic OB
8-41
Ethical Leadership? Authentic
Leadership!
Thoughts?
Ken Lay
Experiencing
Strategic OB
Jeff Skilling Andrew Fastow
8-42
Ethical Leadership? Authentic
Leadership!
Thoughts?
Samuel Waksal
Thoughts?
Ryan Brant
Martha Stewart
Experiencing
Strategic OB
8-43
Authentic Leaders
• Guided by values that focus on doing
•
•
•
•
•
•
Thoughts?
what’s right for their constituencies
Try to act in accordance with their values
Remain transparent
“Walk the talk”
Place equal weight on getting the task
accomplished and developing associates
Continuously develop themselves
Have developed values and personal strengths
they need to deal with ambiguous ethical issues
Experiencing
Strategic OB
8-44
Leader-Member Exchange (LMX)
• Different relationships with different followers
•
•
•
•
•
– not all are treated the same
High level of contribution is a factor
Similarity to the leader is a factor
Two groups - an In-group and an Out-group
Mutual trust and support
Levels of satisfaction
8-45
Leader-Member Exchange (LMX)
In Group
Leader
Exchange
Follower
Out Group
8-46
Servant Leadership
•
•
•
•
•
•
•
Valuing individuals
Developing people
Building community
Conceptualizing
Exhibiting foresight
Displaying wisdom
Desire to serve others
Max De Pree
Former CEO of
Herman Miller
8-47
Gender Effects on Leadership
Do women lead differently than men?
Structural-cultural model of leader behavior
Socialization model
Both women and men may be effective
leaders when style matches the situation
8-48
Global Differences
• Anglo cluster (ideal leader)
• Charismatic influence and inspiration,
encouraging participation
• Diplomatic, delegating authority, allowing
everyone to have their say
• Arabic cluster (ideal leader)
• Need to balance paradoxical set of expectations
• Expected not to differentiate themselves from
others and have modest styles and
• Expected to have great deal of power and control,
and to direct most decisions and actions
8-49
Global Differences
• Germanic cluster (ideal leader)
• Charismatic
• Highly team-oriented
• Participative
• Southern Asia cluster (ideal leader)
• Humane, participative, and charismatic
• Expected to be benevolent while maintaining a
strong position of authority
8-50
The Strategic Lens
• How should leaders approach individuals,
units, and organizations suffering from poor
performance?
• Why is ethical leadership often of utmost
importance to various shareholders?
• Should women and men lead in different ways?
8-51
Questions
8-52