1. Leadership Chapter Ten
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2. Learning Objectives
LO 1 Explain how a good vision helps you be a better leader
LO 2 Discuss the similarities and differences between leading and managing.
LO 3 Identify sources of power in organizations
LO 4 Know the three traditional approaches to understanding leadership
LO 5 Understand the important contemporary perspectives on leadership
LO 6 Identify types of opportunities to be a leader in an organization

3. What Do People Want from their Leaders?
Help in achieving their goals
Support for personal development
Clearing obstacles to high-level performance
Treatment that is respectful, fair, and ethical.

4. What Do Organizations Need?
Organization need people at all levels to be leaders.

5. Key Leadership Behaviors
The best leaders do five things:
Challenge the process
Inspire a shared vision
Enable others to act
Model the way
Encourage the heart
Two perspectives—what people want and what organizations need—are
neatly combined in a set of five key behaviors identified by James Kouzes and Barry
Posner, two well–known authors and consultants. 9 The best leaders
1. Challenge the process. They challenge conventional beliefs and practices, and
they create change.
2. Inspire a shared vision. They appeal to people’s values and motivate them to care
about an important mission.
3. Enable others to act. They give people access to information and give them the
power to perform to their full potential.
4. Model the way. They don’t just tell people what to do, they are living examples
of the ideals they believe in.
5. Encourage the heart. They show appreciation, provide rewards, and use various
approaches to motivate people in positive ways.

6. Vision
Vision
A mental image of a possible and desirable future state of the organization.

7. Vision Visions in action
Visions can be small or large and exist throughout all organizational levels, as well as at the very top.
A vision is necessary for effective leadership.
A person or team can develop a vision for any job, work unit, or organization.
Many people, including managers who do not develop into strong leaders, do not develop a clear vision – they focus on performing or surviving on a day-to-day basis.

8. Inappropriate Vision
An inappropriate vision may reflect only the leader’s personal needs.
An inappropriate vision may ignore stakeholder needs.
An inappropriate vision may need to change.

9. Leaders versus Managers
Do things right
Status quo
Short-term
Means
Builders
Problem solving
LEADERS
Do the right thing
Change
Long-term
Ends
Architects
Inspiring & motivating
Leaders are concerned with doing the right thing, while managers are concerned with doing things right. Managers are more concerned with means, how to get things done, while leaders are more concerned with ends, what gets done. Leaders focus on visions, missions, goals, and objectives, while managers focus solely on productivity and efficiency. Managers see themselves as preservers of the status quo, while leaders see themselves as promoters of change, as challengers of the status quo in that they encourage creativity and risk taking. Managers are concerned with control and limiting the choices of others, while leaders are more concerned with expanding peoples' choices and options. Finally, managers solve problems so that others can do their work, while leaders and managers inspire and motivate others to find their own solutions.
While leaders are different from managers, in practice, organizations need them both. Managers are critical to getting out the day-to-day work and leaders are critical to inspiring employees and setting the organization's long-term direction. The key issue is the extent to which organizations are properly led or properly managed.
1.1

10. Leading and Managing Supervisory leadership Strategic leadership
Behavior that provides guidance, support, and corrective feedback for day-to-day activities.
Strategic leadership
Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future.

11. Good leaders need good followers
Organizations succeed or fail not only because of how well they are led but also because of how well followers follow.
The most effective followers are capable of:
Independent thinking.
Actively committed to organizational goals.
Effective followers are distinguished from ineffective ones by their enthusiasm and commitment to the organization and to a person or purpose – an idea, a product – other than themselves or their own interests.

12. Question ___________ is the ability to influence others. Innovation
Charisma
Power
Clout
The correct answer is c – power. See next slide.

13. Power and Leadership
Power
The ability to influence others.

14. Sources of Power Legitimate Coercive Reward Expert Referent
The leader with legitimate power has the right, or the authority,
to tell others what to do;
The leader who has reward power influences others because she
controls valued rewards
The leader with referent power has personal characteristics that
appeal to others;
The leader with coercive power has control over punishments;
people comply to avoid those punishments
The leader who has expert power has certain expertise or knowledge;

15. Sources of Power
Exhibit 10.1

16. Power
Legitimate power is where the leader has the right, or authority to tell others what to do; employees are obligated to comply with legitimate orders.
Reward power is where the leader influences others because she or he controls valued rewards; people comply with the leader’s wishes in order to receive those rewards.
Coercive power is where the leader has control over punishments; people comply to avoid those punishments.
Referent power is where the leader has personal characteristics that appeal to others; people comply because of admiration, a desire for approval, personal liking, or a desire to be like the leader.
Expert power is where the leader has certain expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise.

17. Traditional Approaches to Understanding Leadership
Trait approach
is the oldest leadership perspective and was dominant for several decades.
The perspective is that some personality characteristics – many of which a person need not be born with but can strive to acquire distinguish effective leaders from other people.

18. Useful Leadership Characteristics
Drive
Leadership Motivation
Integrity
Self Confidence
Knowledge of the Business

19. Leader Behaviors Behavioral approach
A leadership perspective that attempts to identify what good leaders do—that is, what behaviors they exhibit.
The three general categories of leadership are:
Task-performance behaviors
Group maintenance behaviors
Leader-Member Exchange (LMX)

20. Leader Behaviors Task performance behaviors
Actions taken to ensure that the work group or organization reaches its goals.

21. Task Performance Behaviors
This dimension is sometimes referred to as:
concern for production
directive leadership
initiating structure or closeness of supervision.
It includes a focus on:
work speed
quality and accuracy
quantity of output
following the rules.

22. Group Maintenance Group maintenance behaviors
Actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group

23. Group Maintenance This dimension is sometimes referred to as:
concern for people
supportive leadership
consideration.
It includes a focus on:
People’s feelings and comfort
Appreciation of the person
Stress reduction

24. Group Maintenance Leader-Member Exchange (LMX) theory
Highlights the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis.
This includes a focus on:
Trust
Open communication
Mutual respect
Mutual obligation
Mutual loyalty

25. Questions Assessing Task Performance and Group Maintenance Leadership
Exhibit 10.2

26. Participation in Decision Making
Laissez-faire
leadership philosophy characterized by an absence of managerial decision making.
Leads to more negative attitudes and lower performance.

27. Question
Which leadership philosophy is characterized by an absence of managerial decision making?
Autocratic
Democratic
Laissez-faire
Egalitarian
The correct answer is c – laissez-faire. See slide 10-19

28. Participation in Decision Making
Autocratic leadership
A form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group
Democratic leadership
A form of leadership in which the leader solicits input from subordinates.

29. Blake/Moulton Leadership Grid

30. Performance and maintenance behaviors
Ohio State studies found supervisors who were high on maintenance behaviors (which the researchers termed consideration) had fewer grievances and less turnover in their work units than supervisors who were low on this dimension.
Ohio State studies found the opposite for task performance behaviors (which the team called initiating structure). Supervisors high on this dimension had more grievances and higher turnover rates.
An equally famous research program at the University of Michigan concluded that the most effective managers engaged in what they called task-oriented behavior; planning, scheduling, coordinating, providing resources, and setting performance goals.

31. The Best Way to Lead Depends on the Situation
Situational approach
Leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation.
These approaches include:
The Vroom model
Fiedler’s Contingency Model
Hersey and Blanchard’s Situational Theory
Path-Goal Theory

32. 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.

33. Situational Factors for Problem Analysis

34. The Vroom Model of Leadership
Exhibit 10.4
Vroom model
A situational model that focuses on the participative dimension of leadership.
Decision Styles:
Decide
One-on-one consultation
Consult the group
Facilitate
Delegate

35. Vroom’s Leader Decision Styles
Exhibit 10.5

36. Decision Styles
Solve the
problem
Yourself
Autocratic
Obtain
information.
Select a
solution
yourself.
Share problem,
get ideas from
individuals.
Consultative AI
AII CI
Share problem
with group,
get ideas.
Make decision,
which may or
may not reflect
input.
with group.
Together tries
to reach a
solution.
Leader acts as
facilitator.
Group
CII
GII
Leader solves the problem or makes the decision
Leader accepts any decision supported by the entire group
While nearly all of the other leadership theories in this chapter have specified leadership styles, that is, the way a leader generally behaves toward followers, the normative decision theory instead specifies five different decision styles or ways of making decisions. As shown in this slide, those styles vary from autocratic decisions (AI or AII), in which leaders make the decisions by themselves, to consultative decisions (CI or CII), in which leaders share problems with subordinates but still make the decisions themselves, to group decisions (GII), in which leaders share the problems with subordinates and then have the group make the decisions.

37. Fiedler’s Contingency Model
Fiedler’s contingency model of leadership effectiveness
A situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation.

38. Fiedler’s Contingency Model
Task-motivated leadership
Leadership that places primary emphasis on completing a task.
Relationship-motivated leadership
Leadership that places primary emphasis on maintaining good interpersonal relationships.

39. Putting Leaders in the Right Situation Fiedler’s Contingency Theory
In order to maximize work group performance, leaders must be matched to the right leadership situation.
Basic assumptions of Fiedler’s theory
Leaders are effective when the work groups they lead perform well.
So instead of judging leader effectiveness by what a leader does (i.e., initiating structure and consideration) or who the leader is (i.e., trait theory), Fiedler assesses leaders by the conduct and performance of the people they supervise.

40. Fiedler’s Contingency Theory
Leaders are generally unable to change their leadership styles
leaders will be more effective when their leadership styles are matched to the proper situation.
The favorableness of a situation for a leader depends on the degree to which the situation permits the leader to influence the behavior of group members.

41. Fiedler’s Contingency Theory
Group Performance =
Leadership Style
Situational
Favorableness
The first basic assumption of Fiedler’s theory is that leaders are effective when the work groups they lead perform well.
To maximize work group performance, leaders must be matched to the right leadership situation.

42. Leadership Style: Least Preferred Coworker
Leadership style is the way a leader generally behaves toward followers.
Assumes that leadership styles are tied to leader’s underlying needs and personality
Since personality and needs are relative stable, then leaders are generally incapable of changing leadership styles.
The way leaders treat people is probably the way they’ve always treated others.
Yell, scream and blame others, or do they listen and quietly correct mistakes.
Style is measured by the Least Preferred Co-worker scale (LPC)
relationship-oriented
task-oriented
When Fiedler uses the term leadership style, he means the way in which a leader generally behaves toward followers. However, Fiedler also assumes that leadership styles are tied to leaders' underlying needs and personality. And since personality and needs are relatively stable, he assumes that leaders are generally incapable of changing their leadership styles.
Fiedler uses a questionnaire called the Least Preferred Co-worker scale (LPC) to measure leadership style. When completing the LPC scale, people are instructed to consider all of the people with whom they have ever worked and then to choose the one person with whom they "least preferred" to work. Take a second yourself to identify your LPC. It's usually someone you had a big disagreement with, or, for whatever reason, you couldn't get along with or didn't like.
3.1

43. Leadership Style: Least Preferred Coworker Scale
When Fiedler uses the term leadership style, he means the way in which a leader generally behaves toward followers. However, Fiedler also assumes that leadership styles are tied to leaders' underlying needs and personality. And since personality and needs are relatively stable, he assumes that leaders are generally incapable of changing their leadership styles.
Fiedler uses a questionnaire called the Least Preferred Co-worker scale (LPC) to measure leadership style. When completing the LPC scale, people are instructed to consider all of the people with whom they have ever worked and then to choose the one person with whom they "least preferred" to work. Take a second yourself to identify your LPC. It's usually someone you had a big disagreement with, or, for whatever reason, you couldn't get along with or didn't like.
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.
3.1

44. Situational Favorableness
Assumes that leaders will be more effective when their leadership styles are matched to the proper situation.
Situational Favorableness is 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
Fiedler assumes that leaders will be more effective when their leadership styles are matched to the proper situation. More specifically, Fiedler defines situational favorableness as the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. In highly favorable situations, leaders find that their actions influence followers. However, in highly unfavorable situations, leaders have little or no success influencing them.
Three situational factors determine the favorability of a situation: leader-member relations, task structure, and position power. Leader-member relations, which is the most important situational factor, is how well followers respect, trust, and like their leaders. When leader-member relations are good, followers trust the leader and there is a friendly work atmosphere. Task structure is the degree to which the requirements of a subordinate's tasks are clearly specified. With highly structured tasks, employees have clear job responsibilities, goals, and procedures. Position power is the degree to which leaders are able to hire, fire, reward, and punish workers. The more influence leaders have over hiring, firing, rewards, and punishments, the greater their power.

45. Situational Favorableness
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

46. Fiedler’s Analysis of Situations

47. Hersey and Blanchard’s Situational Theory
A life-cycle theory of leadership postulating that a manager should consider an employee’s psychological and job maturity before deciding whether task performance or maintenance behaviors are more important.

48. Worker Readiness
The ability and willingness to take responsibility for directing one’s behavior at work
Components of worker readiness:
Job maturity
Psychological maturity
Worker readiness is composed of two components. Job readiness consists of the amount of knowledge, skill, ability, and experience people have to perform their jobs. Psychological readiness is a feeling of self-confidence or self-respect.

49. Hersey and Blanchard’s Situational Theory
Job maturity
The level of the employee’s skills and technical knowledge relative to the task being performed.
Psychological maturity
An employee’s self-confidence and self-respect.

50. Worker Readiness Beyond the Book R4 R3 R2 R1 confident willing able
insecure
not willing
confident willing not able
insecure not able not willing
Job readiness and psychological readiness are combined to produce four different levels of readiness in Hersey and Blanchard’s Situational Leadership theory.
The lowest level, R1, represents insecure people who are neither willing nor able to take responsibility for guiding their own work. R2 represents people who are confident and are willing but not able to take responsibility for guiding their own work. R3 represents people who are insecure and are able but not willing to take responsibility. And R4 represents people who are confident and willing and able to take responsibility

51. Leadership Styles Beyond the Book Telling (R1) Selling (R2)
Participating (R3)
Delegating (R4)
high task behavior
low relationship behavior
high relationship behavior
low task behavior high relationship behavior
low task behavior low relationship behavior
Situational theory defines leadership styles in terms of task behavior and relationship behavior. These two behaviors can be combined to form four different leadership styles: telling, selling, participating, and delegating.

52. Path-Goal Theory Path-goal theory
A theory that concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals.

53. The Path-Goal Framework

54. Path-Goal Theory 4 Subordinate Contingencies Leadership Styles
Perceived Ability
Locus of Control
Experience
Environmental Contingencies
Task Structure
Formal Authority System
Primary Work Group
Outcomes
Subordinate satisfaction
Subordinate performance
Leadership Styles
Directive
Supportive
Participative
Achievement-Oriented
In contrast to Fiedler's contingency theory, path-goal theory assumes that leaders can change and adapt their leadership styles. Figure illustrates this process, showing that leaders change and adapt their leadership styles contingent on the subordinate they are leading or the environment in which that subordinate works. 4

55. Leadership Styles Directive Supportive Participative
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.
Directive leadership involves 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 leadership involves being friendly and approachable to employees, showing concern for them and their welfare, treating them as equals, and creating a friendly climate. Supportive leadership is very similar to considerate leader behavior. Supportive leadership often results in employee job satisfaction and satisfaction with leaders. This leadership style may also result in improved performance when it increases employee confidence, lowers employee job stress, or improves relations and trust between employees and leaders.
Participative leadership involves consulting employees for their suggestions and input before making decisions. Participation in decision making should help followers understand which goals are most important and clarify the paths to accomplishing them. Furthermore, when people participate in decisions, they become more committed to making them work.
Achievement-oriented leadership means setting challenging goals, having high expectations of employees, and displaying confidence that employees will assume responsibility and put forth extraordinary effort.

56. Subordinate and Environmental Contingencies
Perceived ability
Locus of control
internal
external
Experience
Subordinate
Environmental
Task structure
Formal authority system
Primary work group
Perceived ability is simply how much ability subordinates believe they have for doing their jobs well. Subordinates who perceive that they have a great deal of ability will be dissatisfied with directive leader behaviors. Experienced employees are likely to react in a similar way. Since they already know how to do their jobs (or perceive that they do), they don't need or want close supervision. By contrast, subordinates with little experience or little perceived ability will welcome directive leadership. Locus of control is a personality measure that indicates the extent to which people believe that they have control over what happens to them in life. Internals believe that what happens to them, good or bad, is largely a result of their choices and actions. Externals, on the other hand, believe that what happens to them is caused by external forces outside of their control.
As in Fiedler's contingency theory, task structure is the degree to which the requirements of a subordinate's tasks are clearly specified. When task structure is low and tasks are unclear, directive leadership should be used, because it complements the work environment. However, when task structure is high and tasks are clear, directive leadership duplicates what task structure provides and is not needed. Alternatively, when tasks are stressful, frustrating, or dissatisfying, leaders should respond with supportive leadership.
The formal authority system is an organization's set of procedures, rules, and policies. When the formal authority system is unclear, directive leadership complements the situation by reducing uncertainty and increasing clarity. But when the formal authority system is clear, directive leadership is redundant and should not be used.
Primary work group refers to the amount of work-oriented participation or emotional support that is provided by an employee's immediate work group.

57. Subordinates Contingencies
Perceived ability
how much ability subordinates believe they have for doing their jobs well.
Locus of control
a personality measure that indicates the extent to which people believe that they have control over what happens to them in life.
Internals believe that what happens to them, good or bad, is largely a result of their choices and actions.
Externals, on the other hand, believe that what happens to them is caused by external forces outside of their control
Experience

58. 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.

59. Path Goal Theory: When to Use Leadership Styles
4.2

60. Substitutes for Leadership
Factors in the workplace that can exert the same influence on employees as leaders would provide.

61. Leadership Substitutes and Neutralizers
This chart lists a number of subordinate, task, or organizational characteristics that can act as leadership substitutes or neutralizers. For instance, when leadership substitutes such as ability and performance feedback are present, task-related leader behavior that specifies goals, task assignments, and how to do the job aren't likely to improve a subordinate's work performance. Think about it. Workers already have the capability to do their jobs. And, the job itself provides enough information to let them know how well they're doing their jobs or what they might do to correct performance problems. In situations like this, where leadership substitutes are strong, leaders don't need to tell workers what to do or how to do their jobs.
For example, when a subordinate is indifferent toward organizational rewards, there may be nothing that a leader can do to reward them for good performance. Likewise, union contracts that specify that all employees be paid the same, organizational policies that reward employees by seniority, and salary and raise processes that don't give leaders enough money to substantially reward good performers effectively neutralize the ability of leaders to reward workers. Spatial distance (an organizational characteristic) can also neutralize leadership. Spatial distance is a situation in which supervisors and subordinates don't work in the same place, such as with telecommuters or people working thousands of miles away in overseas offices. Spatial distance typically means infrequent feedback, little or no face-to-face contact, and being "out of sight and out of mind," all of which make it very difficult for leaders to lead. In fact, some companies find telecommuting to be so disruptive to leadership processes that they require their telecommuters to come into the office at least once or twice a week.

62. Contemporary Perspectives on Leadership
Charismatic leader
A person who is dominant, self-confident, convinced of the moral righteousness of his beliefs, and able to arouse a sense of excitement and adventure in followers.

63. Contemporary Perspectives on Leadership
Transformational leader
A leader who motivates people to transcend their personal interests for the good of the group.
Transformational leaders move beyond the more traditional transactional approach to leadership.
Transactional leaders
manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered.
Are normally dispassionate; do not excite, transform, empower or inspire.
However, may be more effective for individualists

64. Contemporary Perspectives on Leadership
Skills that contribute to transformational leadership:
Have a vision
Communicate their vision
Build trust
Have positive self-regard

65. Contemporary Perspectives on Leadership
Level 5 leadership
A combination of strong professional will (determination) and humility that builds enduring greatness.
Level 5 leaders exhibit both transformational and transactional skills

66. Authentic Leadership Adds An Ethical Dimension
A style in which the leader is true to himself or herself while leading
Care about public interests(community, organizational) not just their own
Willing to sacrifice own interests for others
Ethically mature
Pseudo-transformational leaders
Leaders who talk about positive change but allow their self-interest to take precedence over followers’ needs

67. Today’s Organizations Offer Many Opportunities to Lead
Servant-leader
A leader who serves others’ needs while strengthening the organization.
Bridge leaders
A leader who bridges conflicting value systems or different cultures.

68. Today’s Organizations Offer Many Opportunities to Lead
Shared leadership
Rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time.
Lateral leadership
Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.

69. Good Leaders Need Courage
See things as they are and face them head-on, making no excuses and harboring no wishful illusions.
Say what needs to be said to those who need to hear it.
Persist despite resistance, criticism, abuse, and setbacks

71. Video: Japan CEO
Why does the CEO of Japan Airlines take a bus to work?
What style of leadership does, CEO Naruka Nishimatsu, exhibit to his employees?