Chapter 14 Leadership © 2015 Cengage Learning MGMT7.

Chapter 14 Leadership

© 2015 Cengage Learning MGMT7

What Is Leadership?

• Leadership– The process of influencing others to achieve group

or organizational goals.

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Leaders vs. Managers

© 2015 Cengage Learning

• Doing the right thing• “What should we be doing?”• Vision, mission, goals, objectives• Challenge the status quo• Long-term view• Expand people’s options and choices• Inspire and motivate people to find their

own solutions• Concerned with ends, what gets done

• Doing things right• “How can we do what we’re already

doing better?” • Productivity and efficiency• Preservers of status quo• Short-term view• Limit others’ choices• Sole problems so that others can do

their work• More concerned with means, how

things get done

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Leaders versus Managers

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American organizations (and probably those in much of the rest of the industrialized world) are under led

and over managed. They do not pay enoughattention to doing the right thing, while theypay too much attention to doing things right.

--Warren Bennis

American organizations (and probably those in much of the rest of the industrialized world) are under led

and over managed. They do not pay enoughattention to doing the right thing, while theypay too much attention to doing things right.

--Warren Bennis

1.11.1

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Who Leaders Are and What Leaders Do

Leadership Traits

Leadership Traits

LeadershipBehavior

LeadershipBehavior

Does leadership success depend on who leaders are, such as introverts or extroverts, or on what leaders do and how they behave?

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Leadership Traits

• Trait Theory– Effective leaders possess a similar set of

traits or characteristics.• Traits

– Relative stable characteristic, such as abilities, psychological motives, or consistent patterns of behavior.

– For example, according trait theory leaders are taller, more confident, and have greater physical stamina than nonleaders.

Leadership Traits

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Leaders are different than nonleaders in the following traits:

Desire to Lead

Drive

Knowledge of the Business

Cognitive Ability

Emotional Stability

Self-Confidence

Honesty and Integrity

Leadership Traits

• Desire to Lead-Want to be in charge and influence others

• Drive-high level of effort, motivation, initiative, energy and tenacity.

• Knowledge of Business-understand key technological decisions and concerns facing their company.

• Cognitive Ability-capacity to analyze large amounts of seemingly unrelated, complex information.

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Leadership Traits

• Emotional Stability-remain even-tempered and consistent in their outlook and in the way they treat others.

• Self-confidence-believe in one’s abilities.• Honesty-being truthful with others• Integrity-the extent to which leaders do what

they said they would do.

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Leadership Behaviors

• Concerned with what leaders do.– The behavior they perform or the

actions that leaders take to influence others.

• Research shows that two basic leader behaviors emerged as central to successful leadership:– Initiating structure– Consideration

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Leadership Behaviors

• Initiating Structure(concern for production– The degree to which a leader structures the

roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. Primarily affects subordinates’ job performance.

• Consideration(concern for people)– The extent to which a leader is friendly,

approachable, and supportive and shows concern for employees. Primarily affects a subordinates’ job satisfaction.

© 2015 Cengage Learning 14-2

Blake/Mouton Leadership Grid

14-2© 2015 Cengage Learning

Situational Approaches to Leadership

• Fiedler’s Contingency Theory• Path Goal Theory• Vroom and Yetton’s Normative

Decision Model• These models all assume that the

way a leader generally behaves toward followers depends on the situation.

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Fiedler’s Contingency Theory

In order to maximize work group performance, leaders must be matched

to the right leadership situation.

•Leaders are effective when the work group they lead performs well. •Leaders are generally unable to change their leadership styles, and they will be more effective when their styles are matched to the proper situation. •The favorableness of a situation permits the leader to influence the behavior of group members.

© 2015 Cengage Learning14-3

Fiedler’s Contingency Theory:Putting Leaders in the Right Situation

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GroupPerformance

GroupPerformance =

LeadershipStyle

LeadershipStyle

SituationalFavorableness

SituationalFavorableness

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To maximize work group performance, leaders must be matched to the right leadership situation.

Fiedler’s Contingency Theory

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Least Preferred CoworkerLeast Preferred Coworker

Situational FavorablenessSituational Favorableness

Matching Leadership Stylesto Situations

Matching Leadership Stylesto Situations

Least Preferred Coworker• Leadership style = the way that leaders generally

behave toward their followers.• Leadership styles are tied to leaders’ underlying

needs and personalities.– Since personality and needs are relative stable, then

leaders are generally incapable of changing leadership styles.

– Leaders will be more effective when their leadership styles are matched to the proper situation

• Leadership style is measured by the Least Preferred Co-worker scale (LPC)– Relationship-oriented– Task-oriented


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Leadership Style:Least Preferred Coworker Scale

People who describe their LPC in a positive manner have relationship orientated leadership styles. People who describe their LPC in a negative manner have task orientated leadership styles.

Situational Favorableness

© 2015 Cengage Learning

The degree to which a particular situation either permits or denies a leader the

chance to influence the behavior of group members.

Three factors determine the favorability of a situation:

• Leader-member relations

• Task structure

• Position power 14-3


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• Leader-member relations– Refers to how well followers respect, trust, and like their leaders.

• Task structure– The degree that the requirements of a subordinate’s tasks are clearly

specified.

• Position power– The degree to which leaders are able to hire, fire, reward and punish

workers



Matching Leadership Styles to Situations


Leaders and Situations

• Fiedler assumes leaders to be incapable of changing their leadership styles.

• The key − matching leaders to situations…

• …or teaching leaders how to change situational favorableness


Path-Goal Theory

Leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds

of rewards available for goal attainment.While providing the coaching, guidance, support,

and rewards necessary for effective work performance, leader behaviors must complement and not duplicate the characteristics of followers'

work environments. Thus, leader behaviors must offer something unique and valuable to followers beyond what

they're already experiencing as they do their jobs or beyond that which they can already do for

themselves. © 2015 Cengage Learning14-4

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Basic Assumptions of Path-Goal Theory

Clarify paths to goalsClarify paths to goals

Clear paths to goals by solving problems and removing roadblocks

Clear paths to goals by solving problems and removing roadblocks

Increase the number and kinds of rewardsavailable for goal attainment

Increase the number and kinds of rewardsavailable for goal attainment

Do things that satisfy followers today or will lead to future rewards or satisfaction

Do things that satisfy followers today or will lead to future rewards or satisfaction

Offer followers something unique and valuablebeyond what they’re experiencing

Offer followers something unique and valuablebeyond what they’re experiencing

Path-Goal Theory


Subordinate Contingencies

• Perceived ability– how much ability subordinates believe

they have for doing their jobs well.

• Locus of control– internals vs. externals

• Experience


Environmental Contingencies

• Task structure– the degree to which the requirements of a

subordinate's tasks are clearly specified.

• Formal authority system– an organization's set of procedures, rules, and

policies.

• Primary work group– refers to the amount of work-oriented

participation or emotional support that is provided by an employee's immediate work group.


Leadership Styles• Directive

– letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.

• Supportive– involves being friendly and approachable to employees, showing concern

for them and their welfare, treating them as equals, and creating a friendly climate

• Participative– consulting employees for their suggestions and input before making

decisions.

• Achievement-Oriented– means setting challenging goals, having high expectations of employees,

and displaying confidence that employees will assume responsibility and put forth extraordinary effort.

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Path-Goal Theory: When to Use Directive, Supportive, Participative, or Achievement-Oriented Leadership


Normative Decision Theory

Helps leaders decide how much employee participation (from none to letting

employees make the entire decision) should be used when making decisions.


Vroom-Yetton-Jago Model

• Many people believe that making tough decisions is at the heart of leadership.

• However, experienced leaders will tell you that deciding how to make decisions is just as important.

• The normative decision theory helps leaders decide how much employee participation (from none to letting employees make the entire decision) should be used when making decisions.

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Normative Theory, Decisions Styles, and Levels of Employee Participation


Decision Quality and Acceptance

• Using the right amount of employee participation:– improves decision quality – improves acceptance

• Decision trees helps leader identify optimal level of participation

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Normative Theory Decision Rules


Normative Decision Theory Tree for Determining the Level of Participation in Decision Making


Visionary Leadership

Creates a positive image of the future that motivates organizational

members and provides direction for future planning and goal setting.

Charismatic LeadershipTransformational Leadership


Charismatic Leadership The behavioral tendencies and personal characteristics of leaders that create an

exceptionally strong relationship with followers.

•Articulate a clear vision for the future that is based on strongly held values or morals•Model those values by acting in a way consistent with the vision•Communicate high performance expectations to followers•Display confidence in followers’ abilities to achieve the vision


Charismatic Leadership

• There are two kinds of charismatic leaders. – Ethical charismatics provide developmental

opportunities for followers, are open to positive and negative feedback, recognize others’ contributions, share information, and have moral standards that emphasize the larger interests of the group, organization, or society.

– Unethical charismatics control and manipulate followers, do what is best for themselves instead of their organizations, want to hear only positive feedback, share information that is only beneficial to themselves, and have moral standards that put their interests before everyone else’s.

Ethical and Unethical Charismatics


Reducing Risks of Unethical Charismatics

1. Have a clearly written code of conduct2. Recruit, select, and promote managers

with high ethical standards3. Train leaders how to value, seek, and

used diverse points of view4. Celebrate and reward those who

exhibit ethical behaviors

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Transformational Leadership

Generates awareness and acceptance of a group’s purpose and mission and gets employees to see beyond their own needs and self interests for the

good of the group.Make their followers believe that they are a vital part of the organization


Components of Transformational Leadership

• Charismatic leadership or idealized influence– act as role models for their followers.

• Inspirational motivation– motivate and inspire followers by providing meaning and

challenge to their work.

• Intellectual stimulation– encourage followers to be creative and innovative, to

question assumptions, and to look at problems and situations in new ways, even if they are different from the leader's ideas

• Individualized consideration– pay special attention to followers' individual needs by

creating learning opportunities, accepting and tolerating individual differences, encouraging two-way communication and being a good listener.


Transactional Leadership

• Based on an exchange process in which followers are rewarded for good performance and punished for poor performance.

• When leaders administer rewards fairly and offer followers the rewards that they want, followers will often reciprocate with effort.


Transactional Leadership

• The problem, however, is that transactional leaders often rely too heavily on discipline or threats to bring performance up to standards.

• This might work in the short term, but it’s much less effective in the long run.

Chapter 14 Leadership © 2015 Cengage Learning MGMT7.

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