12 - 1

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 12 - 2

Chapter

12 Leadership

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 12 - 3
Learning Objectives

 After studying Chapter 12, you will know:

 what it means to be a leader
 how a good vision helps you be a better leader
 how to understand and use power
 the personal traits and skills of effective leaders
 the behaviors that will make you a better leader
 what it means to be a charismatic and transformational leader
 how to further your own leadership development

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 12 - 4
Vision

 Vision
 a mental image of a possible and desirable future state of the
organization
 having a vision and communicating it to others are essential
components of great leadership
 the best visions are both:
 ideal - communicates a standard of excellence and clear choice
of positive values
 unique - communicates and inspires pride in being different
from other organizations

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 12 - 5
Vision (cont.)

 Important points about visions

 a vision is necessary for effective leadership
 a person or team can develop a vision for any job
 many people, including managers who do not develop into
strong leaders, do not develop a clear vision
 Visions can be inappropriate
 may reflect merely the leader’s personal needs
 may ignore stakeholders’ needs
 the vision must change when circumstances change

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 12 - 6
Leading And Managing

 Ability to lead effectively sets excellent managers apart from

average ones
 managers deal with ongoing organizational activities
 planning and budgeting routines, structuring the organization
 leadership includes orchestrating organizational change
 creating a vision for the firm and inspiring people to attain it
 management and leadership are both vitally important
 supervisory leadership - provides guidance, support, and
corrective feedback for day-to-day activities of work unit
members
 strategic leadership - gives purpose and meaning to organizations

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 12 - 7
Leading And Following

 Organizations succeed or fail because of how well followers

follow
 effective followers:
 are capable of independent thinking
 are actively committed to organizational goals
 are enthusiastic about ideas and purposes beyond their own self
interest
 master skills that are useful to the organization
 hold performance standards that are higher than required

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 12 - 8
Power And Leadership

 Power
 ability to influence other people
 Sources of power
 legitimate power - leader has organizational authority
 employees are obligated to comply with legitimate orders
 reward power - leader has control over valued rewards
 coercive power - leader has control over punishments
 referent power - leader has personal characteristics that appeal
to others and make them desirous of the leader’s approval
 expert power - leader has knowledge that others feel will be of
benefit to them
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 12 - 9
Sources Of Power

Authority

Control over
Expertise
rewards
Power

Appealing Control over

personal punishments
characteristics
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 Traditional Approaches To 12 - 10

Understanding Leadership
 Leader traits
 trait approach - focussed on individual leaders to determine the
personal characteristics that great leaders share
 characteristics that distinguish effective leaders
 drive - characteristics that reflect a high level of effort
 leadership motivation - they want to lead
 integrity - actions correspond to words
 self-confidence - expectation that one is able to overcome obstacles
and make good decisions in the face of uncertainty
 knowledge of the business - ability to interpret information
 ability to perceive the needs of others and to adjust one’s behavior
accordingly
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 Traditional Approaches To 12 - 11

Understanding Leadership (cont.)

 Leader behaviors
 behavioral approach - sought to identify what behaviors good
leaders exhibit
 task performance - leader’s efforts to ensure that the work unit
reaches its goals
 focus on work speed, quality and quantity of output, and rules
 group maintenance - actions taken to ensure satisfaction
 develop and maintain harmonious work relationships
 leader-member exchange theory - focuses on the leader’s behavior
toward individuals
 focus is primarily on group maintenance behaviors
 potential for cross-cultural differences
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 Traditional Approaches To 12 - 12

Understanding Leadership (cont.)

 Leader behaviors (cont.)
 participation in decision making - leader behaviors that
managers perform in involving their employees in making
decisions
 autocratic leadership - makes decisions and then announces
them to the group
 democratic leadership - solicits input from others
 uses consensus or majority vote to make the final choice

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 Traditional Approaches To 12 - 13

Understanding Leadership (cont.)

 Leader behaviors (cont.)
 effects of leader behavior
 decision styles
 democratic approach resulted in the most positive attitudes
 autocratic approach resulted in somewhat higher performance
 laissez-faire - leadership philosophy characterized by an absence of
managerial decision making
 characteristics of the situation, leader, and the follower determine the
appropriate decision-making style

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 Traditional Approaches To 12 - 14

Understanding Leadership (cont.)

 Leader behaviors (cont.)
 effects of leader behavior (cont.)
 performance and maintenance behavior - are independent of
each other
 Ohio State studies - grievances and turnover:
 were lower when supervisor was high on maintenance behavior

 were higher when supervisor was high on task performance

behavior
 when leader must be high on performance-oriented behavior,

s/he should also be maintenance-oriented

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 Traditional Approaches To 12 - 15

Understanding Leadership (cont.)

 Leader behaviors (cont.)
 effects of leader behavior (cont.)
 performance and maintenance behavior (cont.)
 Michigan studies - most effective managers were task oriented
 effective managers also were relationship oriented

 taken together, Ohio State and Michigan research suggested that the
ideal leader is always both performance and maintenance oriented
 Blake and Mouton’s Leadership Grid
 described a wide range of leadership styles

 recommended a 9,9 style that is high on concern for people and

high on concern for production

 ignores the effect of the situation

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 12 - 16
The Leadership Grid

High Country Club Team

9
Management Management

8
Concern for People (1,9) (9,9)

7
6
Middle of the Road
Management
5

(5,5)
4
3

Impoverished Authority-
Management Compliance
2

Low (1,1) (9,1)

1

1 2 3 4 5 6 7 8 9
Low High
Concern for Production
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 Traditional Approaches To 12 - 17

Understanding Leadership (cont.)

 Situational approaches to leadership
 leadership perspectives proposing that universally important
traits and behaviors do not exist, and that effective leadership
behavior varies from situation to situation
 requires the leader to first analyze the situation and then decide
what to do
 Tannenbaum and Schmidt - three factors must be considered
before deciding how to lead
 forces in the manager
 forces in the subordinate
 forces in the situation
 arguments remain valid today
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 Traditional Approaches To 12 - 18

Understanding Leadership (cont.)

 Situational approaches to leadership (cont.)
 Vroom model - focuses on how leaders go about making
decisions
 seven situational factors used to analyze problems
 each based on a problem attribute
 scored as either high or low
 answering a series of questions about the problem attributes
leads one to 14 possible endpoints of the analysis
 each endpoint recommends one of five decision styles
 decision styles indicate that there are several shades of participation
 use of the model ensures that important situational factors are
considered
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 Vroom’s Situational Factors For 12 - 19

Problem Analysis
DECISION SIGNIFICANCE The significance of the decision to the success
of the project or organization

IMPORTANCE OF The importance of team members’ commitment

COMMITMENT to the decision

LEADER’S EXPERTISE Your knowledge or expertise in relation to this

problem

LIKELIHOOD OF The likelihood that the team would commit itself

COMMITMENT to a decision that you might make on your own

GROUP SUPPORT FOR The degree to which the team supports the
OBJECTIVES organization’s objectives at stake in this problem

Team members’ knowledge or expertise in

GROUP EXPERTISE
relation to this problem

TEAM COMPETENCE The ability of team members to work together

in solving problems
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 12 - 20
Vroom’s Model Of Leadership Style

Team
Competence

Group Expertise

Group Support

Likelihood of
Decision Importance of Commitment
Leader Expertise
Significance Commitment

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 12 - 21
Vroom’s Model Of Leadership Style

Instructions: The Matrix operates like a

funnel. You start at the left with a
specific decision problem in mind. The
column headings denote situational
factors which may or may not be present
in that problem. You progress by
selecting High or Low (H or L) for each
relevant situational factor. Proceed down
from the funnel, judging only those
situational factors for which a judgment is
called for, until you reach the
recommended process.
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 12 - 22
Vroom’s Leader Decision Styles

Consult
Decide Individually Consult Group Facilitate Delegate
0 3 5 7 10
Area of freedom
for subordinates

Use of authority
by manager

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 Traditional Approaches To 12 - 23

Understanding Leadership (cont.)

 Situational approaches to leadership (cont.)
 path-goal theory - concerns how leaders influence
subordinates’ perceptions of their work goals and the paths
they follow toward attainment of those goals
 four pertinent leadership behaviors
 directive leadership - task performance-oriented behavior
 supportive leadership - group maintenance-oriented behavior
 participative leadership - decision style
 achievement-oriented leadership - behavior geared toward
motivating people

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 Traditional Approaches To 12 - 24

Understanding Leadership (cont.)

 Situational approaches to leadership (cont.)
 path-goal theory (cont.)
 factors that determine appropriate leader behavior include:
 personal characteristics of the followers
 authoritarianism - degree to which individuals see the

environment as responsive to their own behavior

 locus of control - extent to which individuals see the

environment as responsive to their own behavior

- internal - believe that what happens to them is their own
doing
- external - believe that luck or fate controls their lives
 ability - beliefs about their own abilities to do their assigned jobs

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 Traditional Approaches To 12 - 25

Understanding Leadership (cont.)

 Situational approaches to leadership (cont.)
 path-goal theory (cont.)
 factors that determine appropriate leader behavior include:
 environmental pressures with which followers must cope
 people’s tasks

 formal authority system of the organization

 primary work group

 theory suggests that the leader should:

 make the path to work goals easier to travel by providing coaching and
direction
 reduce frustrating barriers to goal attainment
 increase opportunities for personal satisfaction by increasing payoffs to
people for achieving performance goals

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 12 - 26
The Path-Goal Framework

Characteristics
of followers

Appropriateness of
1. Directive,
determine 2. Supportive, leading to Followers’
goals and
3. Participative, or
performance
4. Achievement
leader behaviors

Environmental
factors

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 Traditional Approaches To 12 - 27

Understanding Leadership (cont.)

 Situational approaches to leadership (cont.)
 substitutes for leadership - factors in the workplace that can
exert the same influence on employees that leaders would
provide
 certain follower, task, and organizational factors are substitutes
for task performance-oriented and group maintenance-oriented
leader behaviors
 practical implication of this idea
 create situations in which substitutes for leadership operate
 leader will require less time in attempts to influence people

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 Contemporary Perspectives On 12 - 28

Leadership
 Charismatic leadership
 dominant and exceptionally self-confident, with a strong
conviction in the moral righteousness of their beliefs
 communicate high expectations for and confidence in
followers
 articulates ideological goals
 inspire their followers’ trust, confidence, acceptance,
obedience, emotional involvement, affection, admiration, and
higher performance

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 Contemporary Perspectives On 12 - 29

Leadership (cont.)
 Transactional leadership
 traditional management through business transactions
 leaders who manage through using their legitimate, reward, and
coercive powers to give commands and exchange rewards for
services rendered
 dispassionate leadership that does not inspire people to focus on
the interests of the organization
 Transformational leadership
 moves beyond transactional leadership
 transforms a vision into reality and motivates people to
transcend their personal interests for the good of the group
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 Contemporary Perspectives On 12 - 30

Leadership (cont.)
 Transformational leadership (cont.)
 generating excitement - three ways
 they are charismatic
 provide individualized attention - do not treat everyone alike
 assign challenging work to deserving people
 provide one-on-one mentoring to develop their people
 they are intellectually stimulating - arouse an awareness of
problems and potential solutions
 articulate the organization’s opportunities, threats, strengths, and
weaknesses
 stir the imagination and generate insights

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 Contemporary Perspectives On 12 - 31

Leadership (cont.)
 Transformational leadership (cont.)
 skills and strategies - rely on four
 have a vision
 communicate their vision
 build trust
 have a positive self-regard
 recognize their personal strengths and compensate for weaknesses
 know how to learn from failure
 transforming leaders - training available to stimulate
transformational leadership
 research indicates that about half of trainees become
transformational
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 Contemporary Perspectives On 12 - 32

Leadership (cont.)
 Post-heroic leadership
 even great top executives can’t solve all problems on their
own
 effective leadership must permeate the organization
 leader must spread leadership abilities throughout the firm
 make heroes out of those who figure out what needs to be done
and then do it
 A note on courage
 need courage to:
 create and execute a vision of greatness for your unit
 take reasonable risks
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 12 - 33
Developing Your Leadership Skills

 People must work at developing their leadership abilities

 developmental experiences you should seek include:
 assignments
 build something from nothing
 take on project or task force responsibilities
 other people
 exposure to positive role models and people of diverse backgrounds
 hardships
 overcome failing ideas and deals
 confront others’ performance problems
 other events
 formal courses and experiences outside of work
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 Classic Contingency Models Of 12 - 34

Leadership
 Fiedler’s contingency model
 leader effectiveness depends on two factors
 the personal style of the leader
 task-motivated - primary emphasis on completing the task
 low least preferred coworker (LPC)

 relationship-motivated - emphasizes maintaining good interpersonal

relationships
 high LPC

 degree to which the situation gives the leader power, control, and
influence over the situation
 different situations dictate different leadership styles

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 12 - 35
Fiedler’s Analysis Of Situations

Leader-
member Good Poor
relations

Task
structure Structured Unstructured Structured Unstructured

Leader
position High Low High Low High Low High Low
power

Favorable Unfavorable
for leader for leader
Most
effective Relation- Relation- Relation- Relation-
Task- Task- Task- Task-
leader motivated motivated motivated
ship- ship- ship- ship-
motivated
in the motivated motivated motivated motivated
situation
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 Classic Contingency Models Of 12 - 36

Leadership (cont.)
 Hersey and Blanchard’s situational theory
 manager should consider an employee’s psychological and job
maturity
 job maturity - level of the follower’s skills and technical
knowledge relative to the task performed
 psychological maturity - follower’s self-confidence and self-
respect
 determines the degree to which task performance or
maintenance behaviors are important
 maintenance behaviors are not important with followers of low or
high levels of maturity
 performance behaviors important for followers with low maturity
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