© 2010 South-Western, Cengage Learning, Inc.
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
The Nature of Leadership
• The Meaning of Leadership
 Leadership as a Process: what leaders actually do.

Using noncoercive influence to shape the group’s or
organization’s goals.

Motivating others’ behavior toward goals.

Helping to define organizational culture.

Leaders are people who can influence the behaviors of
others without having to rely on force.
 Leadership as a Property: who leaders are.

Characteristics attributed to individuals perceived as leaders.

Leaders are people who are accepted as leaders by others.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–2
Leadership Versus Management
Leadership
Activity
Management
Establishing direction and
vision for the organization
Creating an agenda
Planning and budgeting,
allocating resources
Aligning people through
communications and actions
that provide direction
Developing a human
network for achieving
the agenda
Organizing and staffing,
structuring and monitoring
implementation
Motivating and inspiring
by satisfying needs
Executing plans
Controlling and problem solving
Produces useful change and
new approaches to challenges
Outcomes
Produces predictability and order
and attains results
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–3
17.1 Distinctions Between Management and Leadership
Activity
Management
Leadership
Creating an agenda
Planning and budgeting: Establishing detailed
steps and timetables for achieving needed
results; allocating the resources necessary to
make those needed results happen
Establishing direction: Developing a
vision of the future, often the distant
future, and strategies for producing the
changes needed to achieve that vision
Developing a human
network for achieving
the agenda
Organizing and staffing: Establishing some
structure for accomplishing plan requirements,
staffing that structure with individuals, delegating
responsibility and authority for carrying out the
plan, providing policies and procedures to help
guide people, and creating methods or systems
to monitor implementation
Aligning people: Communicating the
direction by words and deeds to
everyone whose cooperation may be
needed to influence the creation of
teams and coalitions that understand the
visions and strategies and accept their
validity
Executing plans
Controlling and problem solving: Monitoring
results versus planning in some detail,
identifying deviations, and then planning and
organizing to solve these problems
Motivating and inspiring: Energizing
people to overcome major political,
bureaucratic, and resource barriers by
satisfying very basic, but often
unfulfilled, human needs
Outcomes
Produces a degree of predictability and order
and has the potential to produce consistently
major results expected by various stakeholders
(for example, for customers, always being on
time; or, for stockholders, being on budget)
Produces change, often to a dramatic
degree, and has the potential to produce
extremely useful change (for example,
new products that customers want, or
new approaches to labor relations that
help make a firm more competitive)
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–4
Management Challenge Question
• Based on what you learned about motivation in
the previous chapter, is the statement—
“management is functional, leadership is
motivational”—defensible or are leaders really
just practicing a higher form of management?
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–5
The Nature of Leadership (cont’d)
Legitimate power
Reward power
Types of
Power
Referent power
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
Coercive power
Expert power
17–6
Leadership and Power
• Power is the ability to affect the behavior of others.
 Legitimate power is granted through the organizational
hierarchy.
 Reward power is the power to give or withhold rewards.
 Coercive power is the capability to force compliance by
means of psychological, emotional, or physical threat.
 Referent power is the personal power that accrues to
someone based on identification, imitation, loyalty, or charisma.
 Expert power is derived from the possession of information or
expertise.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–7
Power and Leadership
Legitimate
request
Instrumental
compliance
Coercion
Uses of
Power by
Leaders
Rational
persuasion
Inspirational
appeal
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
Personal
identification
Information
distortion
17–8
Using Power
• Legitimate Request
 A subordinate’s compliance with a manager’s request because
the organization has given the manager the right to make the
request.
• Instrumental Compliance
 A subordinate complies with a manager’s request to get the
rewards that the manager controls.
• Coercion
 Threatening to fire, punish, or reprimand subordinates if they do
not do something.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–9
Using Power (cont’d)
• Rational Persuasion
 Convincing subordinates compliance is in their best interest.
• Personal Identification
 Using the superior’s referent power to shape a subordinate’s
behavior.
• Inspirational Appeal
 Influencing a subordinate’s behavior through an appeal to a set
of higher ideals or values (e.g., loyalty).
• Information Distortion
 Withholding or distorting information (which may create an
unethical situation) to influence subordinates’ behavior.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–10
Management Challenge Question
• How would you rank the effectiveness of the
forms of power that are used by managers when
their subordinates are your age?
 Which type of power is most effective? Why?
 Which type of power is the least effective? Why?
 What does your ranking reveal about how the use of
power by managers is changing (or must change) in
today’s organization?
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–11
Generic Approaches to Leadership
• Leadership Traits Approach
 Assumed that a basic set of personal traits that
differentiated leaders from nonleaders could be used
to identify leaders and as a tool for predicting who
would become leaders.
 The trait approach did not establish empirical
relationships between traits and persons regarded as
leaders.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–12
Approaches to Leadership
Leadership Behaviors Studies
Michigan Studies
Job-centered
behavior
Employee-centered
behavior
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
Ohio State Studies
Initiating-structure
behavior
Consideration
behavior
17–13
Leadership Behaviors
• Michigan Studies (Rensis Likert)
 Identified two forms of leader behavior

Job-centered leader behavior

Employee-centered leader behavior
 The two forms of leader behaviors were
considered to be at opposite ends of the same
continuum and similar to (respectively) Likert’s
System 1 and System 4 of organizational design.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–14
Leadership Behaviors (cont’d)
• Ohio State Studies
 Did not interpret leader behavior as being one-
dimensional as did the Michigan State studies.
 Initial research assumption: leaders who exhibit high
levels of both behaviors would be most effective
leaders.
 Identified two basic leadership styles that can be
exhibited simultaneously:

Initiating-structure behavior

Consideration behavior
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–15
Leadership Behaviors (cont’d)
• Ohio State Studies (cont’d)
 Subsequent research indicated that:

Employees of supervisors ranked high on initiating structure
were high performers, but had low levels of satisfaction and
had higher absenteeism.

Employees of supervisors ranked high on consideration had
low- performance ratings, but had high levels of satisfaction
and had less absenteeism.

Other situational variables make consistent leader behavior
predictions difficult.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–16
Situational Approaches to Leadership
• Situational Models of Leader Behavior
 Assume that:


Appropriate leader behavior depends on the situation.
Situational factors that determine appropriate leader behavior
can be identified.
• Situational Leadership Theories:
 Leadership behavior continuum
 Least preferred coworker theory
 Path-goal theory
 Decision tree approach
 Leader-member exchange approach
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–17
Situational Approaches to Leadership
• Leadership Continuum
(Tannenbaum and Schmidt)
 Continuum identifies a range of levels of leadership
from boss-centered to subordinate-centered
leadership
 Variables influencing the decision-making continuum:

Leader’s characteristics

Subordinates’ characteristics

Situational characteristics
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–18
17.2 Tannenbaum and Schmidt’s Leadership Continuum
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–19
Situational Approaches… (cont’d)
• Least Preferred Coworker (LPC)
 Assumed that leadership style is fixed and situation must be
changed to favor leader.
 Appropriate leadership style varies with situational favorableness
(from the leader’s viewpoint).

LPC scale asks leaders to describe the person with whom they are
least able to work well.

High scale scores indicate a relationship orientation; low scores
indicate a task orientation on the part of the leader.
 Situational favorableness is determined by:

Leader-member relations

Task structure

Position power
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–20
17.3 The Least-Preferred Coworker Theory of Leadership
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–21
Situational Approaches… (cont’d)
• Path-Goal Theory (Evans and House)
 The primary functions of a leader are:


To make valued or desired rewards available
in the workplace
To clarify for the subordinate the kinds of behavior
that will lead to goal accomplishment or rewards
 Leader Behaviors:




Directive leader behavior
Supportive leader behavior
Participative leader behavior
Achievement-oriented leader behavior
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–22
The Path-Goal Theory
• Situational Factors:
Work Situation
Leadership Style
Impact on Followers
Expected Results
Follower lacks
self-confidence
Supportive
Increases selfconfidence to complete
task
Increased effort. job
satisfaction, and
performance; fewer
grievances
Lack of job
challenge
Achievementoriented
Encourages setting high
but attainable goals
Improved performance
and greater job
satisfaction
Improper
procedures and
poor decisions
Participative
Clarifies follower need
for making suggestions
and involvement
Improved performance
and greater satisfaction;
less turnover
Ambiguous job
Directive
Clarifies path to get
rewards
Improved performance
and job satisfaction
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–23
17.4 The Path-Goal Framework
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–24
Situational Approaches… (cont’d)
• Vroom’s Decision Tree Approach
 Attempts to prescribe a leadership style appropriate
to a given situation.
 Basic premises:

Subordinate participation in decision making depends on the
characteristics of the situation.

No one decision-making process is best for all situations.

After evaluating problem attributes, a leader chooses a path
on the decision trees that determines the decision style and
specifies the amount of employee participation.
– Decision significance
– Decision timeliness
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–25
Situational Approaches… (cont’d)
• Vroom’s Decision Tree Approach (cont’d)
Decision-Making
Styles
Decide (alone)
Consult (individually)
Consult (group)
Facilitate
Delegate
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–26
17.5
Vroom’s Time-driven
Decision Tree
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–27
17.6 Vroom’s Development-driven Decision Tree
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–28
Situational Approaches (cont’d)
• The Leader-Member Exchange (LMX) Approach
 Stresses the importance of variable relationships
between supervisors and each of their subordinates.
 Vertical dyads

Leaders form unique independent relationships
with each subordinate (dyads) in which the
subordinate becomes a member of the leader’s
out-group or in-group.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–29
17.7 The Leader-Member Exchange (LMX) Model
Leader
Subordinate
1
Subordinate
2
Subordinate
3
Out-Group
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
Subordinate
4
Subordinate
5
In-Group
17–30
Management Challenge Question
• Out of the loop?
What effects does a dyadic relationship with a
leader have on a subordinate’s participation in
decision-making processes?
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–31
Related Approaches to Leadership
• Substitutes for Leadership
 A concept that identifies situations in which leader
behavior is neutralized or replaced by characteristics
of subordinates, the task, and the organization.
Characteristics that Substitute for Leadership
Subordinates
Task
Organization
Ability
Experience
Need for independence
Professional orientation
Indifference towards
organizational goals
Routineness
The availability of feedback
Intrinsic satisfaction
Formalization
Group cohesion
Inflexibility
A rigid reward structure
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–32
Charismatic Leadership (House)
• Charisma
 Is an interpersonal attraction that inspires support and
acceptance
 Is an individual characteristic of a leader.
• Charismatic persons are more successful than
non-charismatic persons.
• Charismatic leaders are:
 Self-confident
 Have a firm conviction in their belief and ideals
 Possess a strong need to influence people
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–33
Related Approaches… (cont’d)
• Charismatic Leadership (cont’d)
 Charismatic leaders in organizations
must be able to:

envision the future, set high expectations,
and model behaviors consistent with
expectations.

energize others through a demonstration
of excitement, personal confidence, and
patterns of success.

enable others by supporting them, by
empathizing with them, and by expressing
confidence in them.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–34
Related Approaches… (cont’d)
• Transformational Leadership
 goes beyond ordinary expectations by:



transmitting a sense of mission
stimulating learning
inspiring new ways of thinking
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–35
Keys to Successful Leadership
Trusting in
subordinate
s
Keeping
cool
Developing
a vision
Successful
Leadership
Encouraging
risk
Inviting
dissent
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
Being
an expert
Simplifying
things
17–36
The Future of Leadership
Strategic
Leadership
Cross-Cultural
Leadership
Emerging Approaches
to Leadership
Ethical
Leadership
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–37
Political Behavior in Organizations
• Political Behavior
 The activities carried out for the specific purpose of acquiring,
developing, and using power and other resources to obtain one’s
preferred outcomes.
Inducement
Persuasion
Common Political
Behaviors
Coercion
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
Creation of an
obligation
Impression
management
17–38
Management Challenge Questions
• How could managers use impression
management to increase their referent and
expert powers?
• How could impression management conflict with
ethical leadership?
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–39
Managing Political Behavior
• Be aware that even if actions are not politically motivated, others
may assume that they are.
• Reduce the likelihood of subordinates engaging in political behavior
by providing them with autonomy, responsibility, challenge, and
feedback.
• Avoid using power to avoid charges of political motivation.
• Get disagreements and conflicts out in the open so that
subordinates have less opportunity to engage in political behavior.
• Avoid covert behaviors that give the impression of political intent
even if none exists.
© 2010 South-Western, Cengage Learning, Inc. All rights reserved.
17–40