1. Chapter 14 Leadership Management 4th Edition Chuck Williams
Prepared by Deborah Baker Texas Christian University

2. What Would You Do? 43rd Floor, Tyco Headquarters, New York City.
The new CEO of Tyco is faced with $28 billion in debt, and the possibilities of bankruptcy
Dennis Kozlowski’s reign as CEO is still embarrassing, when he used funds as his personal piggy bank
How can you get people to see that with sound management, Tyco can be an exceptional company?

3. What Is Leadership?
After reading these sections, you should be able to:
explain what leadership is.
describe who leaders are and what effective leaders do.

4. Differences Between Leaders and Managers Substitutes for Leadership1

5. Leaders versus Managers
Do things right
Status quo
Short-term
Means
Builders
Problem solving
LEADERS
Do the right thing
Change
Long-term
Ends
Architects
Inspiring & motivating
1.1
Adapted from Exhibit 14.1

6. 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
1.1

7. Doing the Right Thing The Three M’s: Mission, Mentor, and Mirror 1.1
Business leaders can develop personal ethics by focusing on their mission, a mentor, and the mirror
Develop a personal mission statement.
Take care in choosing a mentor.
Stand in front of the mirror to assess your ethical performance as a business leader.
DOING THE RIGHT THING
1.1

8. Substitutes for Leadership
Leadership substitutes
subordinate, task, or organizational characteristics that make leaders redundant or unnecessary
Leadership neutralizers
subordinate, task, or organizational characteristics that interfere with a leader’s actions
Leaders don’t always matter
Poor leadership is not the cause of every organizational crisis
1.2

9. Leadership Substitutes and Neutralizers
1.2
Adapted from Exhibit 14.2

10. Who Leaders Are and What Leaders Do
Leadership
Traits
Leadership
Behavior 2

11. Knowledge of the Business
Leadership Traits
Leadership Traits
Desire to Lead
Honesty and Integrity
Drive
Self- Confidence
Emotional Stability
Cognitive Ability
Knowledge of the Business
2.1
Adapted from Exhibit 14.3

12. What Really Works: Leadership Traits
Intelligence
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 75%
Dominance
probability of success 57%
Extroversion
probability of success 63%
Traits and Perceptions of Leadership Effectiveness
2.1

13. What Really Works: Leadership Traits
Charisma and Performance
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 72%
Charisma and Perceived Leadership Effectiveness
probability of success 89%
Charisma and Leader Satisfaction
probability of success 90%
Charisma and Leadership Effectiveness
2.1

14. Leadership Behaviors Initiating Structure Consideration
The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks.
Consideration
The extent to which a leader is friendly, approachable, and supportive and shows concern for employees.
2.2

15. Blake/Moulton Leadership Grid
High 1 2 3 4 5 6 7 8 9
1,9
Country Club Management
9,9
Team Management
Middle of the Road 5,5
5,5
Concern for People
1,1
Impoverished Management
9,1
Authority-Compliance
Low 1 2 3 4 5 6 7 8 9
Low
Concern for Production
High
2.2
Adapted from Exhibit 14.4

16. Situational Approaches to Leadership
After reading these sections, you should be able to:
explain Fiedler’s contingency theory.
describe how path-goal theory works.
discuss Hersey and Blanchard’s Situational Leadership theory.
explain the normative decision theory.

17. Putting Leaders in the Right Situation: Fiedler’s Contingency Theory
Group Performance =
Leadership Style
Situational
Favorableness 3

18. Putting Leaders in the Right Situation: Fiedler’s Contingency Theory
Least Preferred Coworker
Situational Favorableness
Matching Leadership Styles to Situations 3

19. Leadership Style: Least Preferred Coworker
Leadership style is the way a leader generally behaves toward followers
seen as stable and difficult to change
Style is measured by the Least Preferred Co-worker scale (LPC)
relationship-oriented
task-oriented
3.1

20. Leadership Style: Least Preferred Coworker Scale
3.1

21. 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:
Leader-member relations
Task structure
Position power
3.2

22. Situational Favorableness
3.2
Exhibit 14.7

23. Matching Leadership Styles to Situations
3.3
Exhibit 14.8

24. Path-Goal Theory Path-Goal Theory
A leadership theory that states that 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. 4

25. 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 4
Adapted From Figure 14.9

26. Path-Goal Theory 4 Subordinate Contingencies Leadership Styles
Perceived Ability
Locus of Control
Experience
Environmental Contingencies
Task Structure
Formal Authority System
Primary Work Group
Outcomes
Subordinate satisfaction
Subordinate performance
Leadership Styles
Directive
Supportive
Participative
Achievement-Oriented 4
Adapted From Figure 14.10

27. Adapting Leader Behavior: Path-Goal Theory
Leadership
Styles
Subordinate
and Environmental
Contingencies
Outcomes 4

28. Leadership Styles Directive Supportive Participative
clarifying expectations and guidelines
Supportive
being friendly and approachable
Participative
allowing input on decisions
Achievement-Oriented
setting challenging goals
4.1

29. Leadership Styles
Martin Winterkorn of Audi uses a directive style. His employees know exactly what is expected of them.

30. Subordinate and Environmental Contingencies
Perceived ability
Locus of control
Experience
Subordinate
Environmental
Task structure
Formal authority system
Primary work group
4.2

31. Path Goal Theory: When to Use Leadership Styles
4.2
Adapted from Exhibit 14.11

32. Adapting Leadership Behavior
Hersey and Blanchard’s Situational Leadership Theory
Worker Readiness
Leadership
Styles 5

33. Worker Readiness
The ability and willingness to take responsibility for directing one’s behavior at work
Components of worker readiness:
Job readiness
Psychological readiness
5.1

34. Worker Readiness R4 R3 R2 R1 confident willing able insecure
not willing
confident willing not able
insecure not able not willing
5.1

35. Leadership Styles Telling (R1) Selling (R2) Participating (R3)
Delegating (R4)
high task behavior
low relationship behavior
high relationship behavior
low task behavior high relationship behavior
low task behavior low relationship behavior
5.2

36. Normative Decision Theory
Decision Styles
Decision Quality and Acceptance 6

37. Decision Styles
Solve the
problem
yourself
Obtain
information.
Select a
solution
yourself.
Share problem,
get ideas from
individuals. AI
AII CI
Share problem
with group,
get ideas.
Make decision,
which may or
may not reflect
input.
with group.
Together tries
to reach a
solution.
Leader acts as
facilitator.
CII
GII
Leader solves the problem or makes the decision
Leader accepts any decision supported by the entire group
6.1
Adapted from Exhibit 14.12

38. Decision Quality and Acceptance
Using the right amount of employee participation:
improves decision quality
improves acceptance
Decision tree helps leader identify
optimal level of participation
6.2

39. Normative Theory Decision Rules to Increase Decision Quality
Quality Rule
If the quality of the decision is important, then don't use an autocratic decision style
Leader Information Rule
If the quality of the decision is important, and if the leader doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style
Subordinate Information Rule
If the quality of the decision is important, and if the subordinates don't have enough information to make the decision themselves, then don't use a group decision style
6.2

40. Normative Theory Decision Rules to Increase Decision Quality
Goal Congruence Rule
If the quality of the decision is important, and subordinates' goals are different from the organization's goals, then don't use a group decision style
Problem Structure Rule
If the quality of the decision is important, the leader doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style
6.2

41. Normative Theory Decision Rules to Increase Decision Acceptance
Commitment Probability Rule
If having subordinates accept and commit to the decision is important, then don't use an autocratic decision style
Subordinate Conflict Rule
If having subordinates accept the decision is important and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style
Commitment Requirement Rule
If having subordinates accept the decision is absolutely required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style
6.2

42. Strategic Leadership
After reading this section, you should be able to:
explain how visionary leadership (i.e., charismatic and transformational leadership) helps leaders achieve strategic leadership.

43. Charismatic Leadership Transformational Leadership
Visionary Leadership
Charismatic Leadership
Transformational Leadership 7

44. Charismatic Leadership
Creates an exceptionally strong relationship between leader and follower
Charismatic leaders:
articulate a clear vision, based on values
model values consistently with vision
communicate high performance expectations
display confidence in followers’ abilities
7.1

45. Kinds of Charismatic Leaders
Ethical Charismatics
provide developmental opportunities
open to positive and negative feedback
recognize others’ contributions
share information
concerned with the interests of the group
Unethical Charismatics
control and manipulate followers
do what is best for themselves
only want positive feedback
motivated by self-interest
7.1

46. Ethical and Unethical Charismatic Leaders
Charismatic Leader Behaviors
Ethical Charismatics
Exercising Power
Power is used to serve others
Creating the vision
Followers help develop the vision
Communicating with followers
Two-way communication
Accepting feedback
Open to feedback
Want followers to think and to questions the status quo
Stimulating followers
Developing followers
Focus on developing followers
Living by moral standards
Three virtues: courage, sense of fairness, integrity
7.1
Adapted from Exhibit 14.15

47. Ethical and Unethical Charismatic Leaders
Charismatic Leader Behaviors
Unethical Charismatics
Exercising Power
Power is used to dominate others
Creating the vision
Vision comes solely from the leader
Communicating with followers
One-way communication, not open to input from others
Accepting feedback
Prefer yes-men, punish candid feedback
Stimulating followers
Don’t want followers to think, prefer uncritical acceptance of own ideas
Developing followers
Insensitive to followers’ needs
Living by moral standards
Follow standards only if they satisfy immediate self interests
7.1
Adapted from Exhibit 14.15

48. Reducing Risks of Unethical Charismatics
Have a clearly written code of conduct
Recruit, select, and promote managers with high ethical standards
Train leaders how to value, seek, and used diverse points of view
Celebrate and reward those who exhibit ethical behaviors
7.1

49. Transformational Leadership
Generates awareness and acceptance of group’s purpose and mission
Gets followers to accomplish more than they intended or thought possible
7.2

50. Components of Transformational Leadership
Charisma or idealized influence
Inspirational motivation
Intellectual stimulation
Individualized consideration
7.2