© 2008The McGraw-Hill Companies, Inc. All rights reserved.

ChapterChapter 16 16

Leadership

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Ch. 16 Learning Objectives

1. Define the term leadership and explain the difference between leading and managing.

2. Review trait theory research and the takeaways from this theoretical perspective.

3. Explain behavioral styles theory and its takeaways.

4. Explain, according to Fiedler’s contingency model, how leadership style interacts with situational control, and discuss the takeaways from this model.

5. Discuss House’s revised path-goal theory and its practical takeaways. 16-2

Ch. 16 Learning Objectives

6. Describe the difference between laissez-faire, transactional, and transformational leadership.

7. Discuss how transformational leadership transforms followers and work groups.

8. Explain the leader-member exchange model of leadership.

9. Review the concept of shared leadership and the principles of servant-leadership.

10.Describe the follower’s role in the leadership process.

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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 information16-4

Approaches to Studying Leadership

Trait approaches

Behavioral approaches

Contingency approaches

Transformational Approaches

Emerging Approaches 16-5

Leaders & Managers

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Leaders and Managers

• Inspire & Motivate• Manage People• Are Decisive• Create a Vision

Managers who are also leaders

Leaders Managers

• Are Accountable• Execute• Manage Resources• Plan, organize, direct,

control

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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.

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Key Positive Leadership Traits

IntelligenceSelf-confidenceDeterminationHonesty/IntegritySociabilityExtroversionConscientiousnessProblem solving skills

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Ineffective Leadership Traits

IncompetentRigidIntemperateCallousCorruptInsularEvil

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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

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Low Consideration High ConsiderationBehavior Behavior

Low Initiating High InitiatingStructure Behavior Structure Behavior

Ohio State Studies

Behavioral Styles Theory

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Four Leadership Styles

Seeks input from others before taking

action; gets consensus

High

High

Low

Low

Sho

win

g C

onsi

der

atio

n

Initiating Structure

Passive, noncommittal, low impact on followers

Takes charge, structures employees

tasks

Emphasizes reaching the goal while welcoming

suggestions and encouraging consensus

16-13

Drucker’s Leadership Effectiveness Tips

1. Determine what needs to be done.2. Determine the right thing to do for the welfare

of the entire enterprise3. Develop action plans4. Take responsibility for decisions.5. Take responsibility for communicating action

plans6. Focus on opportunities rather than problems.7. Run productive meetings8. Think and say “we” rather than “I”.9. Listen first, speak last. 16-14

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:

a. High on consideration, high on initiating structure

b. High on consideration, low on initiating structurec. Low on consideration, low on initiating structured. Low on consideration, high on initiating

structure 16-15

Behavioral Styles: Key Takeaways

Challenged assumption that leaders are born, not madeDefined “leadership” in actual behaviorsThere is no one best style of leadership – depends on the situationAn “effective” leader behavior can be misused and have negative consequences for employees

16-16

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.

Contingency Approaches to Leadership

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Situation depends on three variables:

1: Leader-Member

Relations

2: Task Structure

3: Position Power

Fiedler’s Contingency Theory

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Have you been in a situation where, as a leader, one of these situational factors were not in your favor? A=Yes, B=NoIf Yes, was it more practical to _________ in response to the situation

a. change the situation b. change your behaviors

Do you agree that leaders have one dominant style? A=Yes, B=No

Your Experience

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Representation of Fiedler’s Contingency Model

Situational Control High Control Situations Moderate Control Situations Low Control

Situations

Leader-member relations

Good Good Good Good Poor Poor Poor Poor

Task Structure High High Low Low High High Low Low

Position Power Strong Weak Strong Weak Strong Weak Strong Weak

Situation I II III IV V VI VII VIII

Optimal Leadership

Style

Task-motivated Leadership

Relationship-Motivated Leadership

Task-Motivated Leadership

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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’ adaptability16-21

House’s Revised Path-Goal Theory

Leader Behaviors Path-goal clarifying Achievement oriented Work facilitation Supportive Interaction facilitation Group oriented-

decision making Representation and

networking Value based

Employee Characteristics

Locus of control Task ability Need for achievement Experience Need for clarity

Environmental Factors

Task structure Work group dynamics

Employee motivation Employee satisfaction Employee performance Leader acceptance Work-unit performance

Leader Behaviors

Leadership Effectiveness

Environmental Factors

Employee Characteristics

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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 obstaclesEmployee and environmental characteristics impact the type of leadership style that will be most effective

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Applying Situational Theories

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Applying Situational Theories

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Transactional Vs. Transformational LeadershipTransactional Leadership

focuses on clarifying employees’ roles and providing rewards contingent on performanceAppeals to what followers want (rewards)

Transformational transforms employees to pursue organizational goals over self-interest

Appeals to followers’ values, beliefs, self-concept

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Transformational Model of Leadership

Leader behavior

Inspirational motivation

Idealized influence

Individualized consideration

Intellectual stimulation

Ind. & Org. characteristic

s

Traits

Life Experiences

Organizational Culture

Effects on followers and work groups

Increased intrinsic motivation, achievement orientation, and goal pursuit Increased identification with the leader

Increased cohesion among workgroup members

Outcomes

Personal commitment to leader and vision

Self-sacrificial behavior

Organizational commitment

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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 alack of mutual trust, respect and liking

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Shared Leadership

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Shared Leadership

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Servant Leadership

Servant Leadership focuses on increased service to others rather than to oneself

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Servant Leadership Characteristics

Very self-aware of their strengths and limitations

4) Awareness

Strive to make themselves and others whole in the face of failure or suffering

3) Healing

Try to empathize with others’ feelings and emotions

2) Empathy

Focus on listening to identify and clarify the needs and desires of the group

1) Listening

DescriptionServant-Leadership Characteristics

Rely on persuasion when making decisions and trying to influence others

5) Persuasion

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Servant Leadership Characteristics

Assume they are stewards of the people and resources they manage

8) Stewardship

Have ability to foresee future outcomes associated with a current course of action or situation

7) Foresight

Seek the appropriate balance between a short-term, day-to-day focus, and a long-term, conceptual orientation

6) Conceptualization

DescriptionServant-Leadership Characteristics

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Servant Leadership Characteristics

Strive to create a sense of community both within and outside the work organization

10) Building community

Committed to people beyond their immediate work role

9) Commitment to the growth of people

DescriptionServant-Leadership Characteristics

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Followers

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Test Your Knowledge

Which of the following is true?a. A leader is responsible for the quality of the

relationships with his/her subordinates.b. Followers who protect their leaders from bad

news are appreciated.c. Followers should focus on doing a good job and

not try to learn about their manager’s style, strengths or weaknesses.

d. Followers should build on mutual strengths and adjust to accommodate the leader’s style, goals, expectations and weaknesses.

16-36