Chapter 14
Leadership
© 2015 Cengage Learning
MGMT7
What Is Leadership?
• Leadership
– The process of influencing others to achieve group
or organizational goals.
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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
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Leaders versus Managers
American organizations (and probably those in much
of the rest of the industrialized world) are under led
and over managed. They do not pay enough
attention to doing the right thing, while they
pay too much attention to doing things right.
--Warren Bennis
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Who Leaders Are and
What Leaders Do
Leadership
Traits
Leadership
Behavior
Does leadership success depend on who leaders are, such as
introverts or extroverts, or on what leaders do and how they
behave?
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Leadership Traits
• Trait Theory
– Effective leaders possess a similar set of
traits or characteristics.
• Traits
– Relative stable characteristic, such as
abilities, psychological motives, or
consistent patterns of behavior.
– For example, according trait theory
leaders are taller, more confident, and
have greater physical stamina than
nonleaders.
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Leadership Traits
Leaders are different than nonleaders in
the following traits:
Desire to Lead
Drive
Knowledge of the Business
Cognitive Ability
Emotional Stability
Self-Confidence
Honesty and Integrity
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Leadership Traits
• Desire to Lead-Want to be in charge and
influence others
• Drive-high level of effort, motivation, initiative,
energy and tenacity.
• Knowledge of Business-understand key
technological decisions and concerns facing
their company.
• Cognitive Ability-capacity to analyze large
amounts of seemingly unrelated, complex
information.
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Leadership Traits
• Emotional Stability-remain even-tempered and
consistent in their outlook and in the way they
treat others.
• Self-confidence-believe in one’s abilities.
• Honesty-being truthful with others
• Integrity-the extent to which leaders do what
they said they would do.
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Leadership Behaviors
• Concerned with what leaders do.
– The behavior they perform or the actions
that leaders take to influence others.
• Research shows that two basic leader
behaviors emerged as central to
successful leadership:
– Initiating structure
– Consideration
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Leadership Behaviors
• Initiating Structure(concern for production
– The degree to which a leader structures the
roles of followers by setting goals, giving
directions, setting deadlines, and assigning
tasks. Primarily affects subordinates’ job
performance.
• Consideration(concern for people)
– The extent to which a leader is friendly,
approachable, and supportive and shows concern
for employees. Primarily affects a subordinates’
job satisfaction.
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Blake/Mouton Leadership Grid
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Situational Approaches to Leadership
• Fiedler’s Contingency Theory
• Path Goal Theory
• Vroom and Yetton’s Normative Decision
Model
• These models all assume that the way a
leader generally behaves toward
followers depends on the situation.
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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.
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Fiedler’s Contingency Theory:
Putting Leaders in the Right Situation
Situational
Favorableness
Group
Performance
=
Leadership
Style
To maximize work group performance, leaders must be matched
to the right leadership situation.
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Fiedler’s Contingency Theory
Least Preferred Coworker
Situational Favorableness
Matching Leadership Styles
to Situations
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Least Preferred Coworker
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Leadership style = the way that leaders generally
behave toward their followers.
Leadership styles are tied to leaders’ underlying
needs and personalities.
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Since personality and needs are relative stable, then
leaders are generally incapable of changing leadership
styles.
Leaders will be more effective when their leadership
styles are matched to the proper situation
Leadership style is measured by the Least
Preferred Co-worker scale (LPC)
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Relationship-oriented
Task-oriented
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Leadership Style:
Least Preferred Coworker Scale
People who describe their LPC in a positive manner have relationship
orientated leadership styles. People who describe their LPC in a
negative manner have task orientated leadership styles.
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Situational Favorableness
The degree to which a particular situation
either permits or denies a leader the chance
to influence the behavior of group members.
Three factors determine the favorability of a
situation:
•Leader-member relations
•Task structure
•Position power
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Situational Favorableness
• Leader-member relations
– Refers to how well followers respect, trust, and like their leaders.
• Task structure
– The degree that the requirements of a subordinate’s tasks are clearly
specified.
• Position power
– The degree to which leaders are able to hire, fire, reward and punish
workers
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Situational Favorableness
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Matching Leadership Styles to Situations
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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
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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.
While providing the coaching, guidance, support,
and rewards necessary for effective work
performance, leader behaviors must complement
and not duplicate the characteristics of followers'
work environments.
Thus, leader behaviors must offer something
unique and valuable to followers beyond what
they're already experiencing as they do their jobs
or beyond that which they can already do for
themselves.
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Basic Assumptions of Path-Goal Theory
Clarify paths to goals
Clear paths to goals by solving problems
and removing roadblocks
Increase the number and kinds of rewards
available for goal attainment
Do things that satisfy followers today or will
lead to future rewards or satisfaction
Offer followers something unique and valuable
beyond what they’re experiencing
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Path-Goal Theory
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Subordinate Contingencies
• Perceived ability
– how much ability subordinates believe they
have for doing their jobs well.
• Locus of control
– internals vs. externals
• Experience
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Environmental Contingencies
• Task structure
– the degree to which the requirements of a
subordinate's tasks are clearly specified.
• Formal authority system
– an organization's set of procedures, rules, and
policies.
• Primary work group
– refers to the amount of work-oriented
participation or emotional support that is
provided by an employee's immediate work
group.
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Leadership Styles
• Directive
– letting employees know precisely what is expected of them, giving
them specific guidelines for performing tasks, scheduling work,
setting standards of performance, and making sure that people
follow standard rules and regulations.
• Supportive
– involves being friendly and approachable to employees, showing
concern for them and their welfare, treating them as equals, and
creating a friendly climate
• Participative
– consulting employees for their suggestions and input before making
decisions.
• Achievement-Oriented
– means setting challenging goals, having high expectations of
employees, and displaying confidence that employees will assume
responsibility and put forth extraordinary effort.
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Path-Goal Theory: When to Use Directive, Supportive,
Participative, or Achievement-Oriented Leadership
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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.
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Vroom-Yetton-Jago Model
• Many people believe that making tough
decisions is at the heart of leadership.
• However, experienced leaders will tell you
that deciding how to make decisions is just
as important.
• The 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.
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Normative Theory, Decisions Styles, and Levels
of Employee Participation
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Decision Quality and Acceptance
• Using the right amount of
employee participation:
– improves decision quality
– improves acceptance
• Decision trees helps leader
identify optimal level of
participation
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Normative Theory Decision Rules
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Normative Decision Theory Tree for Determining the
Level of Participation in Decision Making
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Visionary Leadership
Creates a positive image of the future that
motivates organizational members and
provides direction for future planning and
goal setting.
Charismatic Leadership
Transformational Leadership
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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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Charismatic Leadership
• There are two kinds of charismatic leaders.
– Ethical charismatics provide developmental
opportunities for followers, are open to positive and
negative feedback, recognize others’ contributions,
share information, and have moral standards that
emphasize the larger interests of the group,
organization, or society.
– Unethical charismatics control and manipulate
followers, do what is best for themselves instead of
their organizations, want to hear only positive
feedback, share information that is only beneficial
to themselves, and have moral standards that put
their interests before everyone else’s.
Ethical and Unethical Charismatics
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Reducing Risks of
Unethical Charismatics
1. Have a clearly written code of conduct
2. Recruit, select, and promote managers
with high ethical standards
3. Train leaders how to value, seek, and
used diverse points of view
4. Celebrate and reward those who exhibit
ethical behaviors
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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.
Make their followers believe that they are
a vital part of the organization
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Components of Transformational
Leadership
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Charismatic leadership or idealized influence
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Inspirational motivation
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motivate and inspire followers by providing meaning
and challenge to their work.
Intellectual stimulation
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act as role models for their followers.
encourage followers to be creative and innovative, to
question assumptions, and to look at problems and
situations in new ways, even if they are different from
the leader's ideas
Individualized consideration
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pay special attention to followers' individual needs by
creating learning opportunities, accepting and
tolerating individual differences, encouraging two-way
communication and being a good listener.
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Transactional Leadership
• Based on an exchange process in which
followers are rewarded for good
performance and punished for poor
performance.
• When leaders administer rewards fairly
and offer followers the rewards that they
want, followers will often reciprocate
with effort.
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Transactional Leadership
• The problem, however, is that
transactional leaders often rely too
heavily on discipline or threats to bring
performance up to standards.
• This might work in the short term, but
it’s much less effective in the long run.