1. Leadership
Leadership is critically important to any organization’s success, and Chapter 16 will shed light on this complex subject by covering the following topics: what does leadership involve, trait and behavioral theories of leadership, situational theories, the full-range theory of leadership, and additional perspectives on leadership.
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Ch. 16 Learning Objectives
Define the term leadership and explain the difference between leading and managing.
Review trait theory research and the takeaways from this theoretical perspective.
Explain behavioral styles theory and its takeaways.
Explain, according to Fiedler’s contingency model, how leadership style interacts with situational control, and discuss the takeaways from this model.
Discuss House’s revised path-goal theory and its practical takeaways.
After describing what leadership involves in Objective 1, we will proceed to review the trait and behavioral approaches to leadership as described in Objectives 2 and 3. We’ll then examine two situational theories from Objectives 4 and 5.
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3. Ch. 16 Learning Objectives
Describe the difference between laissez-faire, transactional, and transformational leadership.
Discuss how transformational leadership transforms followers and work groups.
Explain the leader-member exchange model of leadership.
Review the concept of shared leadership and the principles of servant-leadership.
Describe the follower’s role in the leadership process.
We will shed more light on understanding what it takes to be an effective leader in today’s workplace by studying leadership from a variety of perspectives as we cover Objectives 6 through 10.
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4. A Leader Is Someone Who…
…influences a group of individuals to achieve a common goal. Key aspects of leadership include…
Creating and communicating a vision
Influencing others through use of power
Motivating task behavior in pursuit of shared objectives
Establishing and maintaining group culture
Empowering others
Clarifying roles and niche in marketplace
Making tough decisions with limited information
Starting with this basic definition of leadership, let’s go through this list of key aspects of leadership together.
Creating and communicating a vision. A vision is a lofty goal that directs the organization in the future. For example: Palm Inc.’s vision is to be “the leading global provider of handheld computing products and to provide developers with the industry-standard platform for creating world-class mobile solutions.” Another example is Steven Jobs, Apple Computer: “To make computing simple and available to everyone.”
Influencing others through use of power. French & Raven’s five sources of power apply here; remember that a person can use multiple sources depending on the situation and that referent and expert are usually more successful than reward, coercive, or legitimate.
Motivating task behavior in pursuit of shared objectives, rather than personal goals.
Establishing and maintaining group culture by developing the social environment in which people work, an environment that is supportive of teamwork and the free sharing of ideas.
Empowering others by acknowledging their capabilities and granting them responsibility and decision-making ability.
Clarifying roles and niche in marketplace. The kinds of issues leaders can help followers understand are their roles and how they can fulfill them and how their group or organization fits in with the larger competitive marketplace.
Making tough decisions with limited information. Another hallmark of effective leaders is their ability to make good decisions in ambiguous situations with incomplete information.
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5. Approaches to Studying Leadership
Trait approaches
Behavioral approaches
Contingency approaches
Transformational Approaches
Emerging Approaches
You will gain insights about what it takes to be an effective leader as we learn what OB research has to say about a topic that is so important to all organizations. We will begin with what the earliest research identified regarding the traits leaders possess and end with some of the newest research findings on the topic.
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6. Leaders & Managers
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7. Leaders and Managers Leaders Managers Inspire & Motivate
Manage People
Are Decisive
Create a Vision
Are Accountable
Execute
Manage Resources
Plan, organize, direct, control
Let’s take a few moments to contrast leaders and managers. Leaders have a broader focus than managers, and their goal is to influence and help guide people through change. Leaders need to motivate so that people will be managed in the direction that is best for the organization. Effective leaders need to be good managers themselves or else be supported by effective managers.
Broadly speaking leadership
deals with inspiration, motivation, and influence
produces change, often to a dramatic degree
often transforms their organization, and
creates vision for the organization
On the other hand, management
is more formal and scientific, operating with a set of tools and techniques that can be widely used
is more likely to produce a degree of predictability and order
maintains their organization, and
implements vision for the organization
In general, managers have to be focused on systems, structures, controls, and actions intended to achieve predictability and order in complex situations. These are the behaviors that ensure “stuff gets done.”
The bottom-line difference between leadership and management is one of emphasis because leadership and managerial characteristics do overlap. Effective leaders also manage; effective managers also lead. Organizations need both in order to reach their objectives. For example Dr. Martin Luther King is known for his excellent leadership because of his eloquence, vision, and inspiration; but we don’t think of him as a manager. His movement, however, would not have had the widespread impact it has had if it weren’t for the managerial talents of his supporting staff. Thus, leadership and management complement each other.
Managers who are also leaders
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8. Trait Approach to Leadership
“Great Man” approach
Attempt to identify relatively stable, enduring dispositional attributes that leaders possess
Implicit Leadership Theory
Beliefs about how leaders should behave and should do for their followers
Emotional Intelligence
Ability to manage oneself and one’s relationships in mature and constructive ways.
As we turn our attention now to looking at some of the theories that have been developed to help us better understand this complex topic, we’ll begin with the trait approaches that laid the foundation for our understanding of what it takes to be an effective leader.
The “Great Man” approach was popular in 1930’s-50’s
Implicit Leadership Theory states that people have beliefs about how leaders should behave and what they should do for their followers
Research produced one leadership prototype that includes traits such as intelligence, masculinity, and dominance. But similar studies from other countries reveal that leadership prototypes are different. A set of global leadership prototypes has not yet been identified.
Emotional Intelligence is also associated with leadership effectiveness. However the work on emotional intelligence has not appeared in academic journals or professional magazines so it is unclear to what extent emotional intelligence contributes to effective leadership.
In short, traits do play a central role in how we perceive leaders, and they ultimately impact leadership effectiveness. Bringing together the findings from various traits studies, you will see a list of positive traits on the next slide.
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9. Key Positive Leadership Traits
Intelligence
Self-confidence
Determination
Honesty/Integrity
Sociability
Extroversion
Conscientiousness
Problem solving skills
The traits on this list are those that anyone wishing to assume a leadership role would benefit from cultivating:
Intelligence is the ability to think strategically, reason analytically, and exercise good judgment.
Self-confidence allows leaders to gain trust by being sure of their own actions and not being defensive about making mistakes.
Determination is characterized by high energy, motivation, need for achievement.
Honesty and integrity means being truthful and exhibiting a consistency between words and actions.
Sociability refers to being open, honest, competent, forward-looking, and inspiring.
Extroversion is deriving energy from others.
Conscientiousness is being responsible.
Problem solving skills – ability to identify causes of problems and generate appropriate solutions
Interestingly, executives and aspiring executives are often measured on these types of characteristics and then a personal development plan is put together for them to strengthen their weakest areas. Assessments include personality tests, business simulations, and role play exercises.
No one set of traits results in leadership effectiveness in every situation. The next stream of research we’ll discuss shifts the focus to effective leader behaviors.
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10. Ineffective Leadership Traits
Incompetent
Rigid
Intemperate
Callous
Corrupt
Insular
Evil
The traits on this list have been found to be associated with ineffective leaders by Barbara Kellerman. In an analysis of poor leader/follower cases she found the following key traits:
Incompetent – lack of skill or will to create positive change
Rigid – stiff and unyielding, unable or unwilling to adapt to new ideas
Intemperate – lacks self control
Callous – uncaring and unkind, needs, wants and desires of most members are ignored or discounted
Corrupt – lie, cheat, steal – put self-interest ahead of public interest
Insular – disregard welfare of others outside the group they are directly responsible for
Evil – commit atrocities, use pain as an instrument of power
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11. Practical Implication: Trait Theories
Personal Implications
Predispositions: Personality tests and other trait assessments will reveal predispositions
Development Plans: However, targeted plans aimed at adapting and learning new behaviors can be effective ways to develop leadership talent
Organizational Implications:
Use valid measures of job-related traits to select employees
Create management development programs
So let’s discuss what we can take away from the trait research….
First, on a personal level, you may find that trait assessments indicate certain areas of strengths and weaknesses with regard to effective leadership traits
This information can be used to develop targeted development plans to adapt your behavior towards more effective leadership
From the organization’s perspective, trait research suggests that using valid measures of job-related traits to select employees and creating management development programs will promote leadership strength among employees that will eventually be necessary for succession planning.
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12. Behavioral Styles Theory
Ohio State Studies
Low Consideration High Consideration
Behavior Behavior
Low Initiating High Initiating
Structure Behavior Structure Behavior
In an effort to develop better military leaders during World War II, the focus on leadership research shifted from personality traits to leader behaviors. Ohio State researchers concluded that all leader behaviors could be grouped under two dimensions of leader behavior: consideration, employee-centered behaviors, and initiating structure, job-centered behaviors.
Integrating these two dimensions led to four styles of leadership behavior that are discussed on the next slide.
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13. Four Leadership Styles
High
Seeks input from others before taking action; gets consensus
Emphasizes reaching the goal while welcoming suggestions and encouraging consensus
Showing Consideration
Passive, noncommittal, low impact on followers
Takes charge, structures employees tasks
Low
How much consideration and structure behavior a leader exhibits determines which quadrant a leader’s style is associated with.
High consideration and low structure as described in the maroon box of this model is a leader who seeks advice from others and gets consensus before making a decision and taking action.
High consideration and high structure described in the green box is a leader who reaches a goal by using suggestions and encouragement to reach a group consensus.
Low consideration and low structure, the gray box, is a leader who is passive and noncommittal with little impact on followers from whom he seeks little participation in decisions.
Low consideration and high structure, the blue box, is a leader who is characterized by unilaterally taking charge and giving assignments to others.
While it was predicted that leaders who were high on both dimensions would be best, the research has been mixed. It seems to depend on the situation. Thus, the research focus shifted to the situational leadership theories. But before we look at situational theories, we have one more slide on leadership behaviors.
Low
High
Initiating Structure
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14. Drucker’s Leadership Effectiveness Tips
Determine what needs to be done.
Determine the right thing to do for the welfare of the entire enterprise
Develop action plans
Take responsibility for decisions.
Take responsibility for communicating action plans
Focus on opportunities rather than problems.
Run productive meetings
Think and say “we” rather than “I”.
Listen first, speak last.
Well-known management expert and consultant Peter Drucker recommended these nine behaviors managers can focus on to improve their effectiveness.
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15. Test Your Knowledge
Natalia tends to ensure her team is on board with any decision she makes. The productivity of her team is below the level of other teams in her business unit. Based on the Ohio State leadership studies Natalia is probably:
High on consideration, high on initiating structure
High on consideration, low on initiating structure
Low on consideration, low on initiating structure
Low on consideration, high on initiating structure
Natalia tends to ensure her team is on board with any decision she makes. The productivity of her team is below the level of other teams in her business unit. Based on the Ohio State leadership studies Natalia is probably:
High on consideration, high on initiating structure
High on consideration, low on initiating structure
Low on consideration, low on initiating structure
Low on consideration, high on initiating structure
Answer: B.
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16. Behavioral Styles: Key Takeaways
Challenged assumption that leaders are born, not made
Defined “leadership” in actual behaviors
There is no one best style of leadership – depends on the situation
An “effective” leader behavior can be misused and have negative consequences for employees
From the behavioral styles research we are provided with the following lessons:
Leaders can be made through identifying effective behaviors and providing training
This movement of research gave definition about what exactly leadership is through defining it in behavioral terms
The research also uncovered the fact that one particular style of leadership is not necessarily most effective in every situation. For example, more structure is often necessary when employees are dealing with role ambiguity.
Finally, even “effective” leader behaviors can be misused. For example, showing caring and empathy regularly without action to help change course or fix a problem can be very frustrating for employees.
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17. Contingency Approaches to Leadership
Effective traits and behaviors depend on the situation
Fiedler’s Contingency Theory
Premise: There must be a match between the leader’s style and the demands of the situation for the leader to be effective.
Assumption: Leadership style does not change. If a mismatch occurs between style and the situation, change the situation.
Because the findings about leadership traits and behavioral styles were inconsistent, researchers turned their attention to developing the theory that leadership traits and behaviors that will lead to success are contingent upon the situation.
One of the oldest and most widely known models of situational leadership—Fiedler’s Contingency Theory—is described on this slide.
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18. Fiedler’s Contingency Theory
Situation depends on three variables:
1: Leader-Member
Relations
2: Task Structure
3: Position Power
Situational favorableness refers to the degree a situation enables the leader to exert influence over the followers.
Factors that affect situational favorableness are listed in rank order on this slide.
Number one, the degree to which the leader has the support, loyalty, and trust of the work group.
Number two, the degree to which structure is contained within work tasks.
Number three, the degree to which the leader has formal power.
Fiedler’s theory then states that situational factors determine the best style of leadership as will be discussed on the next couple of slides.
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19. Your Experience
Have you been in a situation where, as a leader, one of these situational factors were not in your favor? A=Yes, B=No
If Yes, was it more practical to _________ in response to the situation
change the situation
change your behaviors
Do you agree that leaders have one dominant style? A=Yes, B=No
Stop and think for a moment about your own experience in responding to the first question. The second and third questions ask you to think about your opinion.
If Fiedler were responding to the last question, he would say “yes.” In fact, this premise is one of the criticisms of Fiedler’s theory. All the other contingency theories suggest that leaders should adapt their style based on the situation. Let’s look at the representation of Fiedler’s contingency model on the next slide.
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20. Representation of Fiedler’s Contingency Model
Situational Control
High Control Situations
Moderate Control Situations
Low
Control
Situations
Leader-member relations
Good
Poor
Task Structure
High
Position Power
Strong
Weak
Situation I II
III IV V VI
VII
VIII
This model captures eight combinations of situation control, which refers to the amount of control and influence the leader has in his or her immediate work environment. The optimal leadership style is then associated with each of the possible combinations. The premise here is not to change the leader style to match the situation, but rather to match the leader’s style with with the given environment in order to achieve success.
Even though there has been mixed support for Fiedler’s theory, it did prompt others to examine the contingency nature of leadership.
Optimal Leadership Style
Task-motivated Leadership
Relationship-Motivated Leadership
Task-Motivated Leadership
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21. Fiedler’s Model: Key Takeaways
Leadership effectiveness is comprised of:
Traits,
Behaviors, and
Situational factors
Organization implications
Give some consideration to the situational context when placing people in leadership roles
Poor leadership in one context may not mean poor leadership in a different situation
Organization’s should provide training/mentoring to increase leaders’ adaptability
Fiedler’s theory has had mixed support because the measures he used were not always reliable and this theory has had mixed support when in research studies.
However, Fiedler’s contingency theory does make some contributions to our understanding of leadership.
First, it is not enough to consider just traits and behaviors, but situational factors are also important in determining leadership effectiveness.
Second, organizations may want to consider the match between the leader’s style and leadership situation they are placed in. But should also realize that poor leadership could be caused by a poor fit between the leader and the situation and means that the person could be successful as a leader under a different set of conditions.
In the war for talent, organizations may not want to completely discount a leader who fails in a particular situation because they may be able to contribute to the organization in other ways.
Finally, leaders should change their style given the situation – organization’s should provide training/mentoring to increase leaders’ adaptability
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22. House’s Revised Path-Goal Theory
Employee Characteristics
Locus of control
Task ability
Need for achievement
Experience
Need for clarity
Employee Characteristics
Leader Behaviors
Path-goal clarifying
Achievement oriented
Work facilitation
Supportive
Interaction facilitation
Group oriented-
decision making
Representation and
networking
Value based
Leader Behaviors
Leadership Effectiveness
Employee motivation
Employee satisfaction
Employee performance
Leader acceptance
Work-unit performance
Environmental Factors
Task structure
Work group dynamics
Environmental Factors
Next, we’ll examine House’s theory, which is based on the expectancy theory of motivation. It suggests that leader behavior is motivational to the extent that it:
Reduces road blocks that interfere with goal accomplishment;
Provides the guidance and support needed by employees; and
Ties meaningful rewards to goal accomplishment.
The theory focuses on the idea that there are eight leader behaviors and leaders need to foster intrinsic motivation through empowerment. While research is not definitive regarding this theory, it is useful to think about a variety of leader behaviors being applied differentially based on the employee and situational characteristics.
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23. Path Goal: Key Takeaways
Effective leaders possess and use more than one style of leadership
Managers should try new behaviors based on situational demands
Leaders should clarify paths to goal accomplishment and remove obstacles
Employee and environmental characteristics impact the type of leadership style that will be most effective
While the research evidence for Path-Goal is scant there are three takeaways from this model:
First, effective leaders possess and use more than one style of leadership so managers should try new behaviors based on situational demands
Second, leaders should clarify paths to goal accomplishment and remove obstacles
Third, employee and environmental characteristics impact the type of leadership style that will be most effective
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24. Applying Situational Theories
Identify important outcomes
What are you trying to achieve?
Identify relevant leadership types/behaviors.
What types of behaviors may be appropriate for this situation? Select one or two best ones.
Identify situational conditions.
What are the practical considerations that affect your leadership approach?
While researchers have attempted to identify the leadership style and behavior that is most effective in different situations, the reality is that situations are varied and call for an infinite number and type of solutions. As a result, a team of leadership researchers has offered these general guidelines to help managers use in a variety of situations.
Identify important outcomes
What are you trying to achieve?
Identify relevant leadership types/behaviors.
What types of behaviors may be appropriate for this situation? Select one or two best ones.
Identify situational conditions.
What are the practical considerations that affect your leadership approach?
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25. Applying Situational Theories
Match leadership to the conditions at hand.
Do your best to determine the leadership behavior to use given the situation.
Determine how to make the match.
Change the leader or change the leader’s style?
Match leadership to the conditions at hand.
Do your best to determine the leadership behavior to use given the situation. There are several different situational conditions as well as leadership behaviors and styles. Use your knowledge of these styles and behaviors and the elements of the situation to choose the best match.
Determine how to make the match.
Change the leader or change the leader’s style? In some instances it is important to change the style or behavior of the leaders because it’s not possible to change the leader (e.g., the coach of a sports team before a game). In other instances, changing the leader might be the best approach (e.g.,. changing a sales manager to another position)
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26. Transactional Vs. Transformational Leadership
Transactional Leadership focuses on clarifying employees’ roles and providing rewards contingent on performance
Appeals to what followers want (rewards)
Transformational transforms employees to pursue organizational goals over self-interest
Appeals to followers’ values, beliefs, self-concept
A more recent approach to leadership describes these two important dimensions of leadership—transactional and transformational leadership.
Two underlying characteristics of transactional leadership are that leaders use contingent rewards to motivate employees, and leaders exert corrective action only when subordinates fail to attain performance goals.
Let’s discuss transformational leadership on the next slide.
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27. Transformational Model of Leadership
Ind. & Org. characteristics
Traits
Life Experiences
Organizational Culture
Leader behavior
Inspirational motivation
Idealized influence
Individualized consideration
Intellectual stimulation
Effects on followers and work groups
Increased intrinsic
motivation,
achievement
orientation, and goal
pursuit
Increased
identification with
the leader
cohesion among
workgroup members
Outcomes
Personal
commitment to
leader and vision
Self-sacrificial
behavior
Organizational
commitment
The transformation process takes place by changing the goals, values, needs, beliefs, and aspirations of employees. This is done by appealing to followers' values and personal identity. This figure presents a model of the transformation process.
Research has shown that this model does have validity in that transformational leadership was positively associated with followers’ job satisfaction, satisfaction with the leader, and motivation, as well as group and organizational performance.
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28. The Leader-Member Exchange (LMX Model)
Assumption: Leaders do not treat all employees in the same way – it is based on their one-on-one relationship.
In-group exchange: a partnership characterized by mutual trust, respect and liking
Out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking
As we finish the chapter we will examine four additional perspectives on leadership: the leader-member exchange theory, shared leadership, Level 5 leadership, and servant-leadership.
The LMX model is based on the idea that one of two distinct types of leader-member exchange relationships evolve, and these exchanges are related to important work outcomes.
In-group exchange: a partnership characterized by mutual trust, respect and liking
Out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking
In order to improve the quality of your LMX, following these tips can help:
New employees should offer their loyalty, support, and cooperation to their manager.
If you are an out-group member, either accept the situation, try to become an in- group member by being cooperative and loyal, or quit.
Managers should consciously try to expand their in-groups.
Managers need to give employees ample opportunity to prove themselves.
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29. Shared Leadership
… a dynamic interactive influence process among individuals in groups for which the objective is to lead one another to the achievement of group or organizational goals or both.
Servant leadership is … a dynamic interactive influence process among individuals in groups for which the objective is to lead one another to the achievement of group or organizational goals or both.
This involves peer, upward and downward hierarchical influence effectiveness.
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30. Shared Leadership
Shared leadership involves a simultaneous, ongoing, mutual influence process in which people share responsibility for leading. This works particularly well for knowledge work where voluntary contributions of intellectual capital are required from professionals. This is a departure from the hierarchical structure of many organizations and, therefore, requires a collaborative culture and a system for rewarding and recognizing contributions of individuals as well as teams.
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31. Servant Leadership
Servant Leadership focuses on increased service to others rather than to oneself
Servant leadership is more of a philosophy of managing than a testable theory. Servant leadership focuses on leaders putting the needs of others first and acting as servants to employees, customers, and the community.
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32. Servant Leadership Characteristics
Description
Focus on listening to identify and clarify the needs and desires of the group
Listening
Try to empathize with others’ feelings and emotions
Empathy
Strive to make themselves and others whole in the face of failure or suffering
Healing
Very self-aware of their strengths and limitations
Awareness
Servant-leadership is not a quick-fix approach to leadership. Rather, it is a long-term, transformational approach to life and work. The ten characteristics presented on this and the next two slides identify qualities that could help to improve any leader’s effectiveness.
Rely on persuasion when making decisions and trying to influence others
Persuasion
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33. Servant Leadership Characteristics
Description
Seek the appropriate balance between a short-term, day-to-day focus, and a long-term, conceptual orientation
Conceptualization
Have ability to foresee future outcomes associated with a current course of action or situation
Foresight
Assume they are stewards of the people and resources they manage
Stewardship
[No narration required.]
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34. Servant Leadership Characteristics
Description
Committed to people beyond their immediate work role
Commitment to the growth of people
Strive to create a sense of community both within and outside the work organization
Building community
[No narration required.]
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35. Followers
Significance
Emphasize the meaningfulness of the work one does
Community
Provide a sense of unity and encourage people to treat others with respect and dignity
Excitement
Promote feelings of engagement and energy
Research shows that followers want leaders who foster three emotional responses in others:
Significance
Emphasize the meaningfulness of the work one does
Community
Provide a sense of unity and encourage people to treat others with respect and dignity
Excitement
Promote feelings of engagement and energy
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36. Test Your Knowledge Which of the following is true?
A leader is responsible for the quality of the relationships with his/her subordinates.
Followers who protect their leaders from bad news are appreciated.
Followers should focus on doing a good job and not try to learn about their manager’s style, strengths or weaknesses.
Followers should build on mutual strengths and adjust to accommodate the leader’s style, goals, expectations and weaknesses.
Which of the following is true?
A leader is responsible for the quality of the relationships with his/her subordinates.
Followers who protect their leaders from bad news are appreciated.
Followers should focus on doing a good job and not try to learn about their manager’s style, strengths or weaknesses.
Followers should build on mutual strengths and adjust to accommodate the leader’s style, goals, expectations and weaknesses.
Answer D
This question addresses the role of the follower in leader-follower relationships. It is important that as a follower you actively work with your manager to create a sense of community, challenge, excitement, significance in the work.
The a follower who learns about the leader and adapts their style somewhat to better understand and communicate with the leader will find they have better relationships and will be perceived to be more competent.
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