1

Chapter

7 Leadership

After completing this chapter, you should be able to:

1. Explain what leadership is and how it affect behavior.
2. Describe leadership trait theory.
3. List and describe five behavioral leadership theories.
4. List and describe four contingency leadership theories.
5. Explain four situational supervisory styles.
6. Identify three characteristics that substitute for leadership.
7. Define the following 14 key terms (in order of appearance in the chapter):
leadership normative leadership theory
leadership trait theory situational leadership
behavioral leadership theories autocratic style
Leadership Grid consultative style
contingency leadership theories participative style
contingency leadership theory laissez-faire style
leadership continuum

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Leadership Trait Theory

Leadership trait theory: assumes that there are distinctive physical
and psychological characteristics accounting for leadership
effectiveness.
Ghiselli’s six significant leadership traits
 Supervisory ability (Getting the job done through others).
 Need for occupational achievement (Seeking responsibility).

 Intelligence (Good judgment, reasoning, thinking capacity).

 Decisiveness (Solve problems and make decision).

 Self-assurance (Copes with problems, self-confidence).

 Initiative (Self-starting).

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Behavioral Leadership Theories

Behavioral leadership theories: assume that there are distinctive
styles that effective leaders use consistently, or, that good
leadership is rooted in behavior.
 Basic leadership styles
 Autocratic (Theory X)
 Democratic (Theory Y)

 Laissez-faire (free-rein)

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Ohio State/U. of Michigan Model

High
High considerationHigh structure
(employee centered)(job centered)
(employee centered)

and and
Consideration

Low structureHigh consideration

(job centered)
(employee centered)
32
41
Low considerationHigh structure
(employee centered)
(job centered)
and and
Low structure Low consideration
(job centered)
(employee centered)
Low
Initiating structure
Low High
(job centered)

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The Leadership Grid

The Managerial Grid: Blake and Mouton’s model identifying the
ideal leadership style as having a high concern for both production
and people.
 Five major styles (out of 81 possible)

 The impoverished manager (1,1)

 The sweatshop manager (9,1)

 The country club manager (1,9)

 The organized person manager (5,5)

 The team manager (9,9)

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The Leadership Grid

High 9
Concern for people 1,9 9,9

5,5

Low 1 1,1 9,1

Low 1 9 High
Concern for production

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 7

Transformational Leadership
Transformational leadership: focuses on the behaviors of
successful top-level managers.
 Three acts:
 Recognizing the need for revitalization.
 Creating a new vision.
 Instituting a change.
 Transformational leadership styles:
 Charismatic Leadership
 Transactional Leadership

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Contingency Leadership Theory

Contingency leadership theory: Fiedler’s model to determine if
leadership style is task or relationship orients, and if the situation
matches the style.
 Leadership style
 Determined by filling out LPC scales.
 Situational Favorableness
 Leader-member relations.
 Task structure.

 Position power.

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Contingency Leadership Model

Question 1 Question 2 Question 3 Appropriate

Situat
Are leader- Is the task Is position Style

ion
member structured or power strong
relations good unstructured? or weak?
or poor?
Stro 1 Task
Structured ng
Wea 2 Task
k
Good
Stro 3 Task
Unstructure ng
d Wea
k 4
Sta End
rt Stro Relationship
Structured ng
Wea 5
Poor k
Stro Relationship
Unstructure ng
d Wea 6
k
Relationship

7 Either

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 10

Continuum of Leadership Behavior

Autocratic style

Participative style
Leader
Leader Leader
Leader Leader Leader permits
makes Leader presents
presents presents defines subordin
decision “sells” ideas
tentative problem, limits ates to
and decision and
decision gets and asks function
announc invites
subject suggesti group to within
es it question
to ons, and make limits
s
change makes decision defined
decision by
leader
2
4 5 6
1 3
7

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Normative Leadership Theory (I)

Normative leadership theory: Vroom and Yetton’s decision-tree
model that enables user to select on of five leadership style
appropriate for the situation.
 Five styles:
 AI — Autocratic. Leader makes decision alone with available
information.
 AII — Autocratic. Leader makes decision alone, but uses
information from subordinates.
 CI — Consultative. Leader meets with subordinates individually,
explains situation, gets information and ideas. Leader may or may
not use subordinate’s input. Leader makes decision alone.
 CII — Consultative. Leader meets with subordinates as a group,
with same process as CI.
 GII — Group oriented. Leader meets with subordinates as a group,
explains the situation and allows the group to make the decision.
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Normative Leadership Theory (II)

 Determining the appropriate leadership
 Is there a quality requirement such the one solution is likely to be
more rational than another?
 Do I have sufficient information to make a high-quality decision?

 Is the problem structured?

 Is acceptance of a decision by subordinates critical to effective

implementation?
 If I were to make the decision by myself, is it reasonably certain that
it would be accepted by my subordinates?
 Do subordinates share the organizational goals to be attained in
solving the problem?
 Is conflict among subordinates likely in the preferred solution (not
relevant to individual problems)?
 Do subordinates have sufficient information to make a high-quality
decision?
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Situational Leadership

Immature
Mature

High Moderate Low

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Situational Supervision Model

Capability Levels (C) Supervisory Styles (S)
(C-1) Low (S-A) Autocratic
The employees are unable to and/orHigh directive/low support
unwilling to do the task without direction. Tell employees what to do and
closely oversee performance. Give little or no support. Make decisions by
yourself.
(C-2) Moderate (S-C) Consultative
The employees have moderate ability and High directive/high support
are motivated. Sell employees on doing the job your way
and oversee performance at major stages. You may
include their input in your decision. Develop a supportive
relationship.
(C-3) High (S-P) Participative
The employees are high in ability but may lack Low directive/high support
self-confidence or motivation. Provide little or no direction. Let employees
do the task their way. Spend limited time
overseeing performance. Focus on end results. Make decisions
together, but you have the final say.
(C-4) Outstanding (S-L) Laissez-Faire
The employees are very capable and highly Low directive/low support
motivated. Provide little or no direction and support. Let
employees make their own decisions.
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