Exploring Management

John R. Schermerhorn, Jr. and Daniel G. Bacharach

Sixth Edition

Chapter 11

Leadership
“I have a dream,” said Martin Luther King, Jr, and
his voice traveled across generations. Visionary
leaders communicate shared dreams and inspire
others to pursue lofty goals.

Copyright ©2018 John Wiley & Sons, Inc. 2

Your Chapter 11 Takeaways
• Understand the foundations of effective leadership.
(11.1)
• Identify insights of the contingency leadership
theories.(11.2)
• Discuss current issues and directions in leadership
development. (11.3)

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FOUNDATIONS OF LEADERSHIP 11.1

Takeaway 11.1 – answers to come

• Leadership is one of the four functions of
management.
• Leaders use power to achieve influence.
• Leaders bring vision to leadership situations.
• Leaders display different traits in the quest for
leadership effectiveness.
• Leaders display different styles in the quest for
leadership effectiveness.

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

The Leadership Function of Management

Leading builds commitments and enthusiasm and
turns plans into action.

Figure 11.1 Why is Leading so Important in the

Management Process?
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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Leaders Use Power to Achieve Influence

• Power is the ability to get others to do
what needs to be done.
• Managerial Power = Position Power × Personal
Power.

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1
Position Power
Position power – what an individual can do
based on position in the organization

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Power
• Personal Power – how the leader is perceived as a
person
• Expert power
• special skill or knowledge that influences
behavior
• Reference power
• admirable and likeable qualities that
influence behavior

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Personal Power

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Leaders Bring Vision

• Vision is a clear sense of the future.
• Visionary leadership is the ability to communicate
the vision and how to accomplish the vision.

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Leadership Traits
• People want leaders who are:
• honest
• competent
• forward-looking
• inspiring
• credible

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1
Leadership Styles

Figure 11.2 What Are the Classic Leadership Styles?

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Traits of Effective Leaders

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FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Study Guide for Takeaway 11.1

Rapid Review:
• Leadership, as one of the management functions, is the process
of inspiring others to work hard to accomplish important tasks.
• Leaders use power from two primary sources: position power—
which includes rewards, coercion, and legitimacy, and personal
power—which includes expertise and reference.
• The ability to communicate a vision or clear sense of the future is
considered essential to effective leadership.
• Personal characteristics associated with leadership success
include honesty, competency, drive, integrity, and self-
confidence.
• Research on leader behaviors focused attention on concerns for
task and concerns for people, with the leader high on both and
using a democratic style considered most effective.
Copyright ©2018 John Wiley & Sons, Inc. 14
FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Study Guide for Takeaway 11.1

Questions for Discussion:

1. When, if ever, is a leader justified in using
coercive power?
2. How can a young college graduate gain
personal power when moving into a new job as
team leader?
3. Why might a leader with a human relations
style have difficulty getting things done in an
organization?

Copyright ©2018 John Wiley & Sons, Inc. 15

FOUNDATIONS OF EFFECTIVE LEADERSHIP 11.1

Be Sure You Can…for Takeaway 11.1

• illustrate how managers use position and

personal power.
• define vision and give an example of visionary
leadership.
• list five traits of successful leaders.
• describe alternative leadership styles based on
concern for task and concern for people.

Copyright ©2018 John Wiley & Sons, Inc. 16

CONTINGENCY THEORIES 11.2

Takeaway 11.2 – answers to come

• Fiedler’s contingency model matches leadership styles
with situational differences.
• The Hersey-Blanchard situational leadership model
matches leadership styles with the maturity of followers.
• House’s path-goal theory matches leadership styles with
task and follower characteristics.
• Leader-member exchange theory describes how leaders
treat in-group and out-group followers.
• The Vroom-Jago model describes a leader’s choice of
alternative decision-making methods.

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CONTINGENCY THEORIES 11.2

Contingency Leadership Perspective

• Contingency leadership
• Successful leadership varies by the
circumstances, task, leader and followers.
• Suggest that what is successful as a leadership
style varies according to the situation and
people involved
• Fiedler’s contingency model
• Leadership style depends on the situation.
• Least Preferred Co-worker Scale (LPC)

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CONTINGENCY THEORIES 11.2

Contingency Leadership

FIGURE 11.3 What Are the Best Matches of Leadership Style and
Situation According to Fiedler’s Contingency Model?

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CONTINGENCY THEORIES 11.2
Hersey-Blanchard
Hersey-Blanchard situational model matches
leadership style with maturity of followers.

FIGURE 11.4 What Are the Leadership Implications of the Hersey-

Blanchard Situational Leadership Model?

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 CONTINGENCY THEORIES 11.2
Hersey-Blanchard
Hersey-Blanchard Situational Model Matches
Leadership Styles with the Maturity of Followers
Delegating—allowing the group to take responsibility for task decisions; a low-
task, low-relationship style
Participating—emphasizing shared ideas and participative decisions on task
directions; a low-task, high-relationship style
Selling—explaining task directions in a supportive and persuasive way; a high-
task, high-relationship style
Telling—giving specific task directions and closely supervising work; a high-task,
low- relationship style

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CONTINGENCY THEORIES 11.2
Path-Goal Theory
House’s Path-Goal theory
• Help followers move along paths to achieve work and
personal goals
Four Leadership Styles in House’s Path-Goal Theory
Directive leader—lets others know what is expected, gives directions, maintains
standards
Supportive leader—makes work more pleasant, treats others as equals, acts friendly,
shows concern
Achievement-oriented leader—sets challenging goals, expects high performance,
shows confidence
Participative leader—involves others in decision making, asks for and uses suggestions

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CONTINGENCY THEORIES 11.2
Leader-Member Exchange
• Leader-member exchange (LMX)
• In-groups
• Out-groups

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CONTINGENCY THEORIES 11.2
Vroom-Jago
Vroom-Jago model describes decision-making methods

FIGURE 11.5 What Are the Leadership Implications of the Vroom-Jago

Leader Participation Model?

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CONTINGENCY THEORIES 11.2

Study Guide for Takeaway 11.2

Rapid Review:
• Fiedler’s contingency model describes how situational differences in task
structure, position power, and leader–member relations may influence the
success of task-motivated and relationship-motivated leaders.
• The Hersey-Blanchard situational model recommends using task-oriented
and people-oriented behaviors, depending on the “maturity” levels of
followers.
• House’s path-goal theory describes how leaders add value to situations by
using supportive, directive, achievement-oriented, and/or participative styles
as needed.
• Leader–member exchange theory recognizes that leaders respond differently
to followers in their in-groups and out-groups.
• The Vroom-Jago leader-participation theory advises leaders to choose
decision-making methods—authority, consultative, group—that best fit the
problems to be solved.
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CONTINGENCY THEORIES 11.2

Study Guide for Takeaway 11.2

Questions for Discussion:

1. What are the potential career development
lessons of Fiedler’s contingency leadership
model?
2. What are the implications of follower maturity
for leaders trying to follow the Hersey-
Blanchard situational leadership model?
3. Is it wrong for a team leader to allow the
formation of in-groups and out-groups in his or
her relationships with team members?

Copyright ©2018 John Wiley & Sons, Inc. 26

CONTINGENCY THEORIES 11.2

Be Sure You Can…for Takeaway 11.2

• explain Fiedler’s contingency model for matching
leadership style and situation.
• identify the three variables used to assess situational
favorableness in Fiedler’s model.
• identify the four leadership styles in the Hersey-Blanchard
situational leadership model.
• explain the importance of follower “maturity” in the
Hersey-Blanchard model.
• describe the best use of directive, supportive,
achievement-oriented, and participative leadership styles
in House’s path-goal theory.
• explain how leader–member exchange theory deals with
in-groups and out-groups among a leader’s followers
Copyright ©2018 John Wiley & Sons, Inc. 27
CONTINGENCY THEORIES 11.2

Takeaway 11.3 – answers to come

• Transformational leadership inspires enthusiasm and
great performance.
• Emotionally intelligent leadership handles emotions
and relationships well.
• Interactive leadership emphasizes communication,
listening, and participation.
• Moral leadership builds trust through personal
integrity.
• Servant leadership is follower centered and
empowering.
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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3
Transformational Leadership
• Charismatic leadership
• Inspires others, creates enthusiasm, and leads
to extraordinary performance
• Transactional leadership
• directs the efforts of others through tasks,
rewards, and structures.
• Transformational leadership
• inspirational and arouses extraordinary effort
and performance.

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3

Transformational Leadership
• Transformational leaders raise the confidence,
aspirations, and performance of followers
through these special qualities:
• Vision
• Charisma
• Symbolism
• Empowerment
• Intellectual Stimulation
• Integrity

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3
Emotional Intelligence
Emotional Intelligence (EI)
• Ability to manage emotions in relationships

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3
Interactive Leadership
• Gender similarities hypothesis
• Men and women are similar in terms of
psychological properties
• Interactive Leadership
• Emphasizes communication, listening and
participation

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3
Moral Leadership
• Moral leadership
• Builds trust through integrity
• Integrity
• Honest, credible, and consistent behavior that
puts values into action and earns trust
• Moral overconfidence
• An overly positive view of one’s integrity and
strength of character

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3
Servant Leadership
• Servant leadership
• Commitment to others
• Other-centered rather than self-
centered
• Empowerment
• Give others freedom to gain power,
make decisions, and achievement
influence

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3

Study Guide for Takeaway11.3

Rapid Review:
• Transformational leaders use charisma and emotion to inspire others
toward extraordinary efforts to achieve performance excellence.
• Emotional intelligence, the ability to manage our emotions and
relationships effectively, is an important leadership capability.
• The interactive leadership style, sometimes associated with women,
emphasizes communication, involvement, and interpersonal respect.
• Moral or ethical leadership is built from a foundation of personal
integrity, creating a basis for trust and respect between leaders and
followers.
• A servant leader is follower-centered, not self-centered, and
empowers others to unlock their personal talents in the quest for
goals and accomplishments that help society.

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3

Study Guide for Takeaway 11.3

Questions for Discussion:

1. Should all managers be expected to excel at
transformational leadership?
2. Do women lead differently than men?
3. Is servant leadership inevitably moral
leadership?

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DIRECTION IN LEADERSHIP DEVELOPMENT 11.3

Be Sure You Can…for Takeaway 11.3

• differentiate transformational and transactional

leadership.
• list the personal qualities of transformational leaders.
• explain how emotional intelligence contributes to
leadership success.
• discuss research findings on interactive leadership.
• explain the role of integrity as a foundation for moral
leadership.
• explain the concept of servant leadership.

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Copyright
Copyright © 2018 John Wiley & Sons, Inc.
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from the use of the information contained herein.

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