1. m a n a g e m e n t 2e H i t t / B l a c k / P o r t e r
Chapter 9:
Leadership
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2. Learning Objectives
After studying this chapter, you should be able to:
Define leadership and be able to discuss its significance in organizations
Compare managing and leading and differentiate between them
Analyze a leader’s sources of power and issues in using power effectively
Describe and contrast the roles of the leader, followers, and the situation in the overall leadership process

3. Learning Objectives
Discuss the extent to which national cultures create differences in effective leadership behaviors from one country to another
Explain the conditions that can substitute for, or neutralize, effective leadership
Plan how to improve your own leadership capabilities

4. What is Leadership? Organizational leadership Social influence process
Attempts to influence other people in attaining some goal
Leadership behavior:
Can be shown by anyone
Is expected of most managers
Could be demonstrated more
Leadership can be defined in many ways, but the above represents the textbook’s definition. It’s important to explain to students that, while managers are expected to be leaders, most of them don’t live up to expectations.

5. What is Leadership? Effective leadership
Influence that assists an organization to meet its goals and perform successfully
Effective leaders:
Enable people to accomplish more than if there had been no such leadership
Unlock other people’s potential
Discussing effective leadership will lead students into thinking about what they could do to become better leaders themselves.

6. Leading and Managing: The Same or Different?
Leaders
Create vision for organizations and units
Promote major changes in goals and procedures
Set and communicate new directions
Inspire subordinates
Managers
Deal with interpersonal conflict
Plan
Organize
Implement goals set by others (the leaders)

7. Leading and Managing: The Same or Different?
Managers
Adapted from Exhibit 9.1
Leaders
Leaders and Managers
Managing ought to involve most of the activities thought of as leading
Organizations need their managers to incorporate leadership roles into their behavior
The Venn diagram illustrates that managers and leaders are not necessarily the same thing. Some leaders are not very good managers, and some managers are not real leaders. The best of all worlds is to have people who both lead and manage effectively.

8. Leadership Across Different National Cultures
Examples of leader attributes universally viewed as negative
Examples of leader attributes viewed as positive or negative depending on the culture
Examples of leader attributes universally viewed as positive +
+ Trustworthy
+ Encouraging
+ Honest
+ Decisive
+ Communicative
+ Dependable -
- Noncooperative
- Irritable
- Dictatorial
- Ruthless
- Egocentric
- Asocial
+/-
+/- Ambitious
+/- Individualistic
+/- Cunning
+/- Cautious
+/- Class Conscious
+/- Evasive
There are some human traits that are universally considered either positive (+) or negative (-) for leaders to have; these are represented in the first two columns. The last (right) column lists traits that could be negative or positive, depending on the culture.
For instance, being ambitious and individualistic would be positive traits in a U.S. leader, whereas these traits may be considered negative in some Asian cultures. Being class conscious wouldn’t normally be considered as a leadership trait in the U.S., but in more hierarchical societies, it would be expected that a leader knows his or her position in society.
Adapted from Exhibit 9.2

9. Leadership and Power Power The capacity or ability to influence
Power can:
Lead to greater capacity to influence
Be used to overcome resistance
Be abused and lead to undesirable consequences
Produce positive outcomes if used skillfully
A good example to use when discussing power in the classroom is the power of the college professor. Students will have many examples of how power has been used for both positive and negative consequences. A professor who uses power skillfully can have a positive and long-lasting influence on students – just think of the great professors you had as a student. Likewise, a professor who abuses power can have long-lasting negative influences on students.

10. Types of Power Position Power Personal Power
Based on a manager's rank in an organizational structure and given to the manager by superiors
Personal
Power
Based on a person's individual characteristics; stay with the individual regardless of his or her position in the organizational structure
[Adapted from Exhibit 9.3]

11. Types of Power Position Power Personal Power
Legitimate—How much authority does the organization give to your position?
Reward—Are you able to give others the rewards they want?
Coercive—Are you able to punish others or withhold rewards?
[Adapted from Exhibit 9.3]
Have students think of examples of each type of position and personal power they’ve encountered, either in their jobs or in education. Which types of power did they respond to the best? If they were leaders (and some are), what type of power would they be most likely to use?
Personal
Power
Expert—Do you have knowledge that others need?
Referent—Do others respect you and want to be like you?
Adapted from Exhibit 9.3

12. Four Key Issues in Using Power
How much power should be used?
Should power
be shared?
Which types of power should be used?
How much power should be used? The answer: Use enough to achieve objectives but avoid using excessive power. In difficult situations, a certain amount of power must be used to solve a problem. However, excessive use of power will cause long-term resentment.
Which types of power should be used? Obviously, this has to be the leader’s judgment call. It depends on characteristics of the situation and circumstances: what has happened before, what type of change is needed, what amount of resistance is expected, where opposition is located, etc.
How can power be put to use? To put power to use involves influence tactics, that is, specific behaviors used to affect the behavior and attitudes of other people. (The next slide discusses influence tactics.]
Should power be shared? It is accepted in U.S. business today that power should be shared. This refers to empowerment, where those with high amounts of power increase the power of those with less, especially with regard to decision making.
How can power
be put to use?
Adapted from Exhibit 9.4
Adapted from Exhibit 10.2: Four Key Issues in Using Power

13. Types of Influence Tactics
Rational
Persuasion
Uses logical arguments and factual evidence to show a
proposal or request is feasible and relevant for attaining
important task objectives
Apprising
Explains how carrying out a request or supporting a
proposal will benefit the target personally or help
advance the target person’s career
Inspirational
Appeals
Makes an appeal to values and ideals or seeks to
arouse the target person’s emotions to gain
commitment for a request or proposal
[Note: The types of influence tactics are discussed in this slide as well as the next two.]
Consultation
Encourages the target to suggest improvements in a
proposal or to help plan an activity or change for which
the target person’s support and assistance are desired
Adapted from Exhibit 9.5

14. Types of Influence Tactics (cont.)
Exchange
Offers an incentive, suggests an exchange of favors, or
indicates willingness to reciprocate at a later time if the
target will do what the agent requests
Collaboration
Offers to provide relevant resources and assistance if
the target will carry out a request or approve a proposed
change
Personal
Appeals
Asks the target to carry out a request or support a
proposal out of friendship, or asks for a personal favor
before saying what it is
Ingratiation
Uses praise and flattery before or during an influence
attempt or expresses confidence in the target’s ability
to carry out a difficult request
Adapted from Exhibit 9.5

15. Types of Influence Tactics (cont.)
Legitimating
Tactics
Seeks to establish the legitimacy of a request or to
verify authority to make it by referring to rules, formal
policies, or official documents
Pressure
Uses demands, threats, frequent checking, or persistent
reminders to influence the target person
Coalition
Tactics
Seeks the aid of others to persuade the target to do
something or uses the support of others as a reason
for the target to agree
Adapted from Exhibit 9.5

16. Locus of Leadership Three leadership variables: The leader
The situation
The followers
Locus of leadership:
Where the three variables intersect
Locus of
Leadership
The leadership process consists of three variables: the leader, the situation, and the followers. All three components need to be considered to gain a comprehensive understanding of how the process works. This slide illustrates the "locus of leadership,” or the intersection of these three variables: where and when the leader with a particular set of characteristics and behaviors interacts with a specific set of followers in a situation with certain identifiable characteristics. Each component influences, and is influenced by, the other two, and a change in any one will alter how the other two interact.
Source: Stogdill, R. M. (1948). Personal factors associated with leadership: A survey of the literature. Journal of Psychology. 25, 35-71
Adapted from Exhibit 9.6

17. Leaders’ Traits Leader Emotional maturity Drive
Achievement, ambition, energy, tenacity, initiative
Emotional maturity
Even tempered, calm under stress, unself-centered, nondefensive
Motivation to Lead
Desire to influence others, comfortable using power
Honesty and Integrity
Trustworthy, open, forthright
Leader
Traits provide potential, but other factors such as skills, attitudes, experience, and opportunities determine whether the potential will be realized. The five traits that effective leaders are apt to have are summarized above.
A good discussion would be to have students think about political candidates running for office. If this is a year in which presidential or other important elections are taking place, ask students about specific candidates and whether they have vast amounts of any of the above.
Self-confidence
Set high goals for self and others, optimistic about overcoming obstacles (if taken to extreme, can lead to arrogance and sense of infallibility)
Adapted from Exhibit 9.7

18. Charismatic Leadership
Is a strong form of referent power
Is based on individual inspirational qualities rather than formal power
Generates followers who identify with charismatic leaders because of these exceptional qualities
Is rare; very few people are considered truly “charismatic”
Ask students to name some leaders who are considered truly charismatic. There will be some disagreement, but the discussion will generate a list of traits that students consider to describe charisma.

19. Attributes of Charismatic Leaders
[Note: This slide duplicates the textbook exhibit that summarizes specific traits of a charismatic leaders.]
Adapted from Exhibit 9.8
Adapted from Exhibit 11.10: Attributes of the Charismatic Leader

20. Leaders’ Skills TECHNICAL SKILLS Specialized knowledge
INTERPERSONAL SKILLS
Sensitivity, persuasiveness, empathy
CONCEPTUAL SKILLS
Logical reasoning, judgment, analytical
abilities
This slide from chapter 1 reminds the class of the three skills required of effective managers. These can be repeated for effective leaders as well, though the next slide will add two more important skills.

21. Leaders’ Skills TECHNICAL SKILLS Specialized knowledge
INTERPERSONAL SKILLS
Sensitivity, persuasiveness, empathy
CONCEPTUAL SKILLS
Logical reasoning, judgment, analytical
abilities
Effective leaders have two additional skills: emotional intelligence and social intelligence.
Emotional intelligence is different from cognitive intelligence. It has five key components: self-awareness, self-regulation, motivation, empathy and social skill.
Social intelligence is more focused on being able to “read” other people and their intentions. A person who is socially intelligent is someone who has considerable tacit knowledge or savvy.
EMOTIONAL INTELLIGENCE
Self-awareness, self-regulation, motivation,
empathy and social skill
SOCIAL INTELLIGENCE
Ability to “read” other people
Adapted from Exhibit 9.9

22. Leaders’ Behaviors Task Behaviors Specifies roles and tasks
Schedules work
Sets performance standards
Develops procedures
People Behaviors
Is friendly
Is supportive
Shows trust and confidence in subordinates
Shows concern for subordinates’ welfare
Gives recognition to subordinates for accomplishments
As opposed to skills –which involve knowing how to do something – this slide discusses actual behaviors, or actions, taken by effective leaders. These behaviors can be either task-oriented or people-oriented behaviors.
Task behaviors center on specifying and identifying the roles and tasks of the leaders themselves and their subordinates.
People behaviors are geared more toward building and enhancing relationships.
Effective leaders need to focus on both structuring the work (task behaviors) and supporting and developing good interpersonal relationships with and among subordinates (people behaviors).
Adapted from Exhibit 9.10

23. Leadership Approaches
Approaches Based on Leaders’ Behavior
BLAKE & MOUTON:
MANAGERIAL GRID
Best managers are both
task- and people-oriented
TRANSFORMATIONAL LEADERSHIP
Leaders who inspire followers
to make major changes or to achieve
at very high levels
TRANSACTIONAL LEADERSHIP
Emphasizes the exchange of rewards
for followers’ compliance
AUTHENTIC LEADERSHIP
Model self-awareness and regulation
and motivate followers to act
more authentically too

24. Managerial Grid
Focuses on two leadership behaviors: concern for people and concern for results
Leaders can be
High in both
Low in both
In the middle on both
High in one, low in the other
Low
High 9 8 7 6 5 4 3 2 1
Good
Leaders
Mediocre
Leaders
Concern for People
Poor
Leaders 1 2 3 4 5 6 7 8 9
Low
High
Concern for Results

25. Transformational Leadership
Empower and coach followers
Motivate followers to:
Ignore self-interest
Work for the larger good of the organization
Achieve significant accomplishments
Make major changes

26. Transactional Leadership
Is more passive
Emphasizes exchange or rewards or benefits for compliance with leader’s requests
Appeals to followers’ self-interests to motivate their performance

27. Transformational Versus Transactional Leadership
Transformational Leadership
Transactional Leadership
Leader gains subordinates’ compliance by:
Inspiring, empowering, and coaching followers
Exchange of rewards and benefits
Appeals focus on:
Organizational and “common good” interests
Self-interest
This slides summarizes key differences between transformational leaders and transactional leaders.
Type of planned change:
Major organizational change
Routine changes
Adapted from Exhibit 9.11
Adapted from Exhibit 11.11: Transformation versus Transactional Leadership

28. Guidelines for Transformational Leadership
Develop a clear and appealing vision
Develop a strategy for attaining the vision
Articulate and promote the vision
Act confident and optimistic
Express confidence in followers
Use early success in small steps to build confidence
Celebrate successes
Use dramatic, symbolic actions to emphasize key values
Lead by example
Adapted from Exhibit 9.12

29. Followers’ Behaviors Important points about followers:
They may be as informed as leaders
They may share power with leaders
Usually have lower formal authority, though power differences have decreased
They affect the leader’s style and success

30. Leadership Approaches
Approaches Based on Followers’ Behavior
HERSEY AND BLANCHARD:
SITUATIONAL LEADERSHIP MODEL
Focuses followers’ “readiness” to
engage in learning new tasks
LEADER-MEMBER
EXCHANGE THEORY
Focuses on types of relationships
between a leader and a follower

31. Situational Leadership Model
Leadership behaviors depend on “readiness” of followers
Ability in a specific task
Motivation to undertake the new task
Leadership behaviors
Supportiveness (people orientation)
Directiveness (task orientation)

32. Leader-Member Exchange Theory
Quality of the leader-member relationship can influence behavior of subordinates
Leader should build strong, mutually beneficial relationship
Relationship goes through stages:
Stranger
Acquaintance
Maturity
This theory is illustrated graphically in the next slide.

33. Leader-Member Relationships
Relationship characteristics
Relationship
stage
Stranger
Acquaintance
Maturity
Relationship-
building phase
Quality of leader-
member exchange
Amounts of
reciprocal Influence
Focus of interest
Role-
Finding
Low
None
Self
Role-
Making
Medium
Limited
Role-
Implementation
High
Almost
Unlimited
Team
Leaders and their subordinates may start off as strangers and develop a relationships over time. A good relationship develops into acquaintances and finally into maturity.
Time
Adapted from Exhibit 9.13

34. The Situation Situational variables affecting leadership are:
Tasks to be performed
If task changes, leadership style changes
Unstructured task done by experts  supportive leadership
Structured task done by inexperienced people  directive leadership
Organizational context
Immediate work group + larger organization
Organizational culture dictates leadership style

35. Leadership Approaches
Approaches Based on Situation
FIEDLER: CONTINTENCY
LEADERSHIP MODEL
Focuses on type of leader and the
degree of favorability of the situation
HOUSE: PATH-GOAL THEORY
Use leadership approach based on
both subordinate skills and situation

36. Leadership Contingency Theory
Premise: Leadership effectiveness depends on
1) favorability of situation and 2) type of leader
FAVORABLE SITUATION
Good subordinate relationships
Highly structured task
High amount of position power
UNFAVORABLE SITUATION
Poor subordinate relationships
Unstructured task
Leader lacks position power
The premise of Fiedler’s leadership contingency theory is that leadership effectiveness on two factors: 1) the favorability of the situation with which the leader is faced and 2) the leadership style he or she has.
The illustration above summarizes what is considered to be favorable and unfavorable situations and when task-oriented versus people-oriented leaders tend to do their best.
TASK-ORIENTED LEADERS
Do best when the situation is either:
Highly favorable, or
Highly unfavorable
PEOPLE-ORIENTED LEADERS
Do best when the situation is either:
Moderately favorable, or
Moderately unfavorable

37. Path-Goal Theory
Leader’s job is to increase subordinate satisfaction and effort
Assumes that:
One leadership approach will work better in some task situations than others
Leaders can modify their styles to suit the situation
Two basic leadership behaviors:
Supportive
Directive

38. Path-Goal Theory IF AND IF AND The task is:
Frustrating, boring, stressful, structured, and routine
Supportive Leadership Style
(Person oriented)
AND
Subordinates are:
Highly experienced and competent
Goal
(i.e., increased performance) IF
The task is:
Interesting but ambiguous, nonstressful, unstructured, varied
The Path-Goal theory draws from expectancy theory, which will be covered in the chapter on motivation. It assumes that the leader’s role if to influence subordinates’ estimated probabilities for being able to convert their efforts into performance that leads to desired rewards.
The premise of this theory is that a particular leadership style will work better in some situations than in others.
Directive
Leadership Style
(Task oriented)
AND
Subordinates are:
inexperienced
Adapted from Exhibit 9.14

39. Substitutes for Leadership
[Note: This slide is based on Exhibit 9.14 but uses a slightly difference format for better legibility.]
The approaches listed above can substitute for a gap in leadership or sometimes overcome poor leadership. For example, professional orientation or extensive professional training can substitute for a leader who is inept at developing his/her employees. An intrinsically satisfying task probably needs little leadership, as employees will be self-motivated to perform well.
Adapted from Exhibit 9.14
Adapted from Exhibit 5.2: Factors of Moral Intensity