Chapter 17:
Leadership
Chapter Objectives
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Definition of leadership
Difference between leaders and managers
Sources of power
Evolution of leadership theories
Behavioral theories
Situational theories
Cutting-edge approaches to leadership
Becoming an effective leader
Before We Begin…
• What famous leaders can you think
of?
Examples of Leaders from
Various Fields
• Adventure
– Neil Armstrong
– Amelia Earhardt
– Wright Brothers
• Political
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Winston Churchil
Ben Franklin
Thomas Jefferson
John Kennedy
Nelson Mandella
Martin Luther King
• Science
– Albert Einstein
• Spiritual
– Daili Lama
– Mother Teresa
• Sports
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Muhammud Ali
Michael Jordan
John Wooden
Tiger Woods
2004 World's Most Respected Leaders
(according to PriceWaterhouse Coopers & Financial Times study)
1. Bill Gates (Microsoft)
2. Jack Welch (GE)
3. Carlos Ghosn (Nissan)
4. Warren Buffett (Berkshire Hathaway)
5. Michael Dell (Dell Computer)
6. Hiroshi Okuda (Toyota)
7. Jeff Immelt (GE)
8. Carly Fiorina (HP)
9. Steve Jobs (Apple)
10. Fujio Mitarai (Canon)
According to the survey, the qualities most often cited in successful business leaders are:
leadership, motivation, genius, inspiration, vision, innovation and boosting shareholder value.
Questions About
Leadership
• What is leadership?
• What’s the difference between
managers and leaders?
• Should all managers be leaders?
• Should all leaders be managers?
Managers
Versus Leaders
Managers
Leaders
•Appointed
•Have formal
authority
•Ability to influence
based on formal
authority
•Can be appointed
or emerge
•Ability to influence
goes beyond
formal authority
Legitimate
Coercive
Sources
of Power
Reward
Expert
Referent
Which do leaders use?
Relationship Between
Managers & Leaders
= Leaders
= Managers
= Managers & Leaders
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Evolution of Leadership
Theories
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Trait
Behavioral
Honesty
Integrity
Confidence
Intelligence
• Autocratic
(task)
• Democratic
(people)
Situational
• Numerous
variables!
Seven Traits Associated
with Leadership
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Drive
Desire to lead
Honesty and integrity
Self-confidence
Intelligence
Job-relevant knowledge
Extraversion
Behavioral Theories of Leadership
1) Autocratic
Kurt Lewin
2) Democratic
(University of Iowa) 3) Laissez-faire
Ohio State
1) Initiation
2) Consideration
1) Production-oriented
University of Michigan 2) Employee-oriented
Managerial Grid
1) Concern for production
2) Concern for people
The
Managerial
Grid
Exhibit 17.3
Fiedler Model Variables
Leadership
Style
(fixed)
Task-oriented
Relationship-oriented
Leader-member
relations
G
P
H
Situation
Task structure
Position power
L
S
W
Findings of the Fiedler Model
Exhibit 17.4
Leadership Participation Model
– Says leader’s DM style should be based on
various contingencies:
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Decision significance
Importance of commitment
Leader expertise
Likelihood of commitment
Group support
Group expertise
Team competence
Leadership Decision-Making Styles
• Decide: Leader makes the decision alone and either
announces or sells it to group.
• Consult Individually: Leader presents the problem to
group members individually, gets their suggestions, and then
makes the decision.
• Consult Group: Leader presents the problem to group
members in a meeting, gets their suggestions, and then
makes the decision.
• Facilitate: Leader presents the problem to the group in a
meeting and, acting as facilitator, defines the problem and the
boundaries within which a decision must be made.
• Delegate: Leader permits the group to make the decision
within prescribed limits.
Exhibit 17.6
Leader
Participation
Model
Source: Adapted from V. Vroom, “Leadership and
the Decision-Making Process,” Organizational
Dynamics, vol. 28, no. 4 (2000), p. 87.
Exhibit 17.7
Path-Goal Theory
Environmental
contingency factors
•Task structure
•Formal authority system
•Work group
Leader
behavior
•Directive
•Supportive
•Participative
•Achievementoriented
Outcomes
•Performance
•Satisfaction
Subordinate
contingency factors
•Locus of control
•Experience
•Perceived ability
Examples of Hypotheses
from Path-Goal Theory
• When tasks are ambiguous and stressful,
subordinates will prefer directive leadership;
when tasks are highly-structured and well-laid
out, subordinates will prefer supportive
leadership
• When subordinates have high ability and
considerable experience, directive leadership will
be perceived as redundant
• Subordinates with an internal locus of control will
be more satisfied with a participate style
Factors that Affect Choice
of Leadership Style
• Relationship between • Importance of subordinate
leader and
commitment
subordinates
• Subordinate’s locus of
• Position power
control
• Leader’s information • Subordinate’s experience
• Subordinates’ info
• Subordinate’s ability
• Task structure
• Relationship between
leaders and subordinates
• Dynamics of work
group
Summary of Contingency
Models of Leadership
Theory
Fiedler Model
Path-Goal
Leadership
Participation
Effective Leadership
Depends On...
Match between leader’s
management style and
situation
Whether leadership behavior is
“acceptable” to subordinates
Taking into account up to 12
contingency variables!
Other Types of
Leadership
Visionary
Charismatic
Transformational
Team
What is a Visionary Leader?
• Someone who can create and
articulate a realistic, credible, and
attractive vision of the future that
improves on the present situation
What is a Charismatic
Leader?
• An enthusiastic, self-confident leader
whose strong personality and
actions influence people to behave in
certain ways. Often visionary. Will
often take risks to achieve vision,
and exhibit behavior that is out of the
ordinary.
What is a Transformational
Leader?
• Someone Who:
– Inspires others to transcend their own selfinterests and work for the larger good of the
organization.
– Articulates a vision that convinces
subordinates to make major changes.
– Possesses charisma.
– Can have a profound belief on followers’
beliefs and values – actually change you (goes
beyond charisma)
Examples of
Transformational Leaders
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Bill Gates (Microsoft)
Steve Jobs (Apple)
Michael Dell (Dell Computer)
Jeff Bezos (Amazon.com)
Lou Gerstner (IBM)
Jack Welch (GE)
Can Leadership Be Taught?
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Leadership training is big business!
Most successful with high “self-monitors”
Highly motivated individuals more successful at leadership
training
People can be taught how to:
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Be “charismatic” (eye contact, gesture, voice)
Analyze situations and learn about different leadership styles
Implement
Build trust
Mentor
But hard to “teach”:
– Visioning, strong personality, passion, walk the talk, risk-taking
A Delicate Situation
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You are the new manager of customer service operations at Preferred
Bank Card, Inc., a credit card issuer with offices throughout California.
Your predecessor, who was very popular with the customer service
representatives and who is still with the company, concealed from your
team how far behind they are on their goals this quarter. As a result, your
team members are looking forward to a promised day off that they are not
entitled to and will not be getting. It’s your job to tell them the bad news.
How will you do it?
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Form small groups of no more than four people. Discuss this situation
and how you would handle it. Then, create a role-playing situation that
illustrates your group’s proposed approach. Be ready to do your role play
in front of the class. Also, be prepared to provide the rest of the class with
the specific steps that your group suggested be used in this situation.