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CHAPTER 11
Leadership
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What is Leadership?
Leadership: The ability to influence a group toward the achievement of a vision or set of goals
Source of influence may be formal (via position in organization) or not (a variety of people can be called on the perform leadership roles)
Nonsanctioned leadership: The ability to influence that arises outside the formal structure of the organization – may be as important or more than formal influence
LO1; Material pertinent to this discussion is found under “What is Leadership?”
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What is Leadership?
Organizations need both strong leadership and strong management
Leaders needed to challenge the status quo, create visions of the future, and inspire organizational members to achieve the visions
Need managers to formulate detailed plans, create efficient organizational structures and oversee day-to-day operations
LO1; Material pertinent to this discussion is found under “What is Leadership?”
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4. Leadership as Supervision
Three general types of theories:
Trait Theories: Are leaders different from others?
Behavioural Theories: Do Leaders Behave in Particular Ways?
Contingency Theories: Does the situation matter?
LO2; Material pertinent to this discussion is found under “Leadership as Supervision.” Note: This slide introduces the three types of theories. Future slides provide more detail as speaking notes.
These theories examine how leaders/managers operate on a day-to-day level, supervising employees to get things done.
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Trait Theories
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders
Not very useful until matched with the Big Five Personality Framework
Leadership Traits
Extroversion
Conscientiousness
Openness
Emotional Intelligence (Qualified)
Traits can predict leadership, but they are better at predicting leader emergence than effectiveness.
LO2; Material pertinent to this discussion is found under “Leadership as Supervision.”
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6. Behavioural Theories of Leadership
Theories proposing that specific behaviors differentiate leaders from non-leaders
Differences between theories of leadership:
Trait theory: leadership is inherent, so we must identify the leader based on his or her traits
Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders
LO3; Material pertinent to this discussion is found under “Behavioural Theories: Do Leaders Behave in Particular Ways?”
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7. Contingency Theories: Does the Situation Matter?
Stress the importance of considering the context when examining leadership.
Fiedler Contingency Model
Hersey and Blanchard’s Situational Theory
Path-Goal Theory
Substitutes for Leadership
LO4; Material pertinent to this discussion is found under “Contingency Theories: Does the Situation Matter?” Note: This is an introductory slide to introduce the contingency theories. Slides follow to elaborate on each model/theory.
These theories acknowledge that predicting leadership success is more complex than isolating a few traits or preferable behaviours. Popular moderating variables used in the development of contingency theories include the degree of structure in the task being performed, the quality of leader-member relations, the leader’s position power, subordinates’ role clarity, group norms, information availability, subordinate acceptance of leader's decisions, and subordinate maturity. The major theory covered under situational theories in the text is Path-Goal Theory.
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8. Fiedler Contingency Model
Effective group performance depends upon the proper match between the leader’s style and the degree to which the situation gives control to the leader.
Least preferred co-worker (LPC) questionnaire determined whether individuals were primarily interested in:
good personal relations with co-workers, and thus relationship oriented, or
productivity, and thus task oriented.
LO4; Material pertinent to this discussion is found under “Contingency Theories: Does the Situation Matter?”
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9. Fiedler Contingency Model
Fiedler’s contingency situations:
Leader-member relations
Degree of confidence, trust and respect members have for leader.
Task structure
Degree to which jobs are structured.
Position power
Degree to which leader has control over “power”: hiring, firing, discipline, promotions, salary.
Fiedler assumed that an individual’s leadership style is fixed.
LO4; Material pertinent to this discussion is found under “Contingency Theories: Does the Situation Matter?”
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10. Hersey and Blanchard’s Situational Leadership
A model that focuses on follower “readiness.” Followers can accept or reject the leader. The leader’s effectiveness depends on the followers’ response to the leader’s actions.
“Readiness” is the extent to which people have the ability and willingness to accomplish a specific task.
Follower: able but unwilling
Leader: needs to use a supportive and participative style.
Follower: both able and willing
Leader: a laissez-faire approach will work
Follower: unable but willing
Leader: needs to display high task orientation and high relationship orientation.
Follower: unable and unwilling
Leader: needs to give clear and specific directions.
LO4; Material pertinent to this discussion is found under “Contingency Theories: Does the Situation Matter?” 10

11. Path-Goal Guidelines to Be Effective
Determine the outcomes subordinates want. e.g., pay, security, interesting work, and autonomy, etc.
Reward individuals with their desired outcomes when they perform well.
Clarity of expectations.
Let individuals know what they need to do to receive rewards (the path to the goal) and Remove barriers that prevent high performance.
Express confidence that individuals have the ability to perform well.
Directive Informs subordinates of expectations, gives guidance
Supportive Friendly and approachable, shows concern for status, well-being, and needs of subordinates.
Participative Consults with subordinates, solicits suggestions, takes suggestions into consideration.
Achievement oriented Sets challenging goals, expects subordinates to perform at highest level, continuously seeks improvement in performance, has confidence in highest motivations of employees.
LO4; Material pertinent to this discussion is found under “Contingency Theories: Does the Situation Matter?”
This theory was developed by Martin Evans and expanded upon by Robert House and combines elements of initiating structure and consideration with expectancy theory. A major idea is that a leader’s behaviour is acceptable to subordinates insofar as they view it as a source of either immediate or future satisfaction.
Research is generally supportive of this theory; that is, employee performance and satisfaction are likely to be positively influenced when the leader compensates for things lacking in either the employee or the work setting. 11

12. Inspirational Leadership
The focus is leader as communicator who inspires others to act beyond their immediate self-interests.
Two contemporary leadership theories
Charismatic Leadership
Transformational Leadership
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.” Note: This is an introductory slide for Inspirational forms of leadership. The next slides provide detailed speaking notes.
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13. Charismatic Leadership
From the Greek for “gift”
A certain quality of an individual personality, by virtue of which he or she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities.
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
Some examples of individuals frequently cited as being charismatic leaders include René Lévesque, Jean Charest, Lucien Bouchard, John F. Kennedy, Martin Luther King, Jr., Walt Disney, Steve Jobs (co-founder of Apple Computer), Mary Kay Ash (founder of Mary Kay Cosmetics), Lee Iacocca (former chairman of Chrysler), and Craig Kielburger (the Canadian teenager who founded Free the Children to promote children’s rights and combat exploitation of child labour).
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14. Charismatic Leadership
Traits and personality are related to charisma
People can be trained to exhibit charismatic behaviors
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
Some examples of individuals frequently cited as being charismatic leaders include René Lévesque, Jean Charest, Lucien Bouchard, John F. Kennedy, Martin Luther King, Jr., Walt Disney, Steve Jobs (co-founder of Apple Computer), Mary Kay Ash (founder of Mary Kay Cosmetics), Lee Iacocca (former chairman of Chrysler), and Craig Kielburger (the Canadian teenager who founded Free the Children to promote children’s rights and combat exploitation of child labour).
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15. How Charismatic Leaders Influence Followers?
Leader articulates an attractive vision
Vision Statement: A formal, long-term strategy to attain goals
Links past, present, and future
Leader communicates high performance expectations and confidence in follower ability
Leader conveys a new set of values by setting an example
Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
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16. Charismatic Leadership Issues
Importance of vision
Must be inspirational, value-centered, realizable, and given with superior imagery and articulation
Charismatic effectiveness and situation
Charisma works best when:
The follower’s task has an ideological component
There is a lot of stress and uncertainty in the environment
The leader is at the upper level of the organization
Followers have low self-esteem and self-worth
Dark Side of Charisma
Ego-driven charismatic leaders allow their self-interest and personal goals to override the organization’s goals
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
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Level-5 Leaders
Effective leaders who possess the four typical leadership traits
Individual capability
Team skills
Managerial competence
Ability to stimulate others to high performance
Plus one critical new trait…
A blend of personal humility and professional will
Personal ego needs are focused toward building a great company
Take responsibility for failures and give credit to others for successes
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
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18. Transactional & Transformational Leadership
Transactional Leaders
Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements
Transformational Leaders
Inspire followers to transcend their own self-interests for the good of the organization; they can have a profound and extraordinary effect on followers
Not opposing, but complementary, approaches to leadership
Great transformational
Best leaders must also be transactional; only one type is not enough for success
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
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19. Characteristics of Transactional & Transformational Leaders
LO5; Material pertinent to this discussion is found under “Inspirational Leadership.”
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Self-Leadership
Self-Leadership
A set of processes through which individuals control their own behavior
How do leaders create self-leaders?
Model self-leadership
Encourage employees to create self-set goals
Encourage the use of self-rewards to strengthen and increase desirable behaviours
Create positive thought patterns
Create a climate of self-leadership
Encourage self-criticism
LO6; Material pertinent to this discussion is found under “Contemporary Leadership Roles.”
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Team Leadership
Leading teams requires new skills.
e.g., patience to share information, trust others, give up authority, and knowing when to intervene
Leading teams requires new roles.
Liaisons with external constituencies
Troubleshooters
Conflict managers
Coaches
LO6; Material pertinent to this discussion is found under “Contemporary Leadership Roles.”
Leadership is increasingly taking place within a team context. As teams grow in popularity, the role of the leader in guiding team members takes on heightened importance. The role of team leader is different from the traditional leadership role performed by first-line supervisors.
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Online Leadership
Identification-Based Trust
based on a mutual understanding of each other’s intentions and appreciation of each other’s wants and desires.
Leadership at a Distance
Negotiations can be hindered because parties express lower levels of trust
Good leadership skills – include ability to communicate support, trust, and inspiration through electronic communication
Accurately read emotions in others’ messages
Writing skills are likely to become an extension of interpersonal skills
LO6; Material pertinent to this discussion is found under “Contemporary Leadership Roles.”
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23. Benefits of Leading Without Authority
Latitude for creative deviance
Easier to raise questions.
Issue focus
Freedom to focus on single issue, rather than many issues.
Frontline information
Often closer to the people who have the information.
LO6; Material pertinent to this discussion is found under “Contemporary Leadership Roles.”
Leading without authority simply means exhibiting leadership behaviour even though you do not have a formal position or title that might encourage others “to obey.” The benefits are:
Latitude for creative deviance. Because one does not have authority, and the trappings that go with authority, it is easier to raise harder questions and look for less traditional solutions.
Issue focus. Leading without authority means that one can focus on a single issue, rather than be concerned with the myriad issues that those in authority face.
Frontline information. Leading without authority means that one is closer to the detailed experiences of some of the stakeholders. Thus more information is available to this kind of leader.
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24. Contemporary Issues in Leadership
Authentic Leadership
Ethical Leadership
Servant Leadership
LO7; Material pertinent to this discussion is found under “Contemporary Issues in Leadership.” This slide introduces the contemporary issues. The following slides provide speaking notes for more detail.
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Authentic Leadership
Authentic Leaders
People who know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly (Primary quality: trust)
Build trust by:
Sharing information
Encouraging open communication
Sticking to their ideals
LO7; Material pertinent to this discussion is found under “Contemporary Issues in Leadership.”
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Ethical Leadership
Ethics and Leadership intersect
Transformational leadership has ethical implications – change the way followers think
Charisma has ethical implications – unethical leaders use their charisma to enhance power over followers, directed toward self-serving ends
Ethical leadership reduces interpersonal conflict and increases organizational citizenship behaviours
Need to set high ethical standards and model them
LO8; Material pertinent to this discussion is found under “Contemporary Issues in Leadership.”
There are a number of places where ethics and leadership meet. Questions arise about the use of power and charisma: Is charisma used to enhance control over others for the personal gain of the leader, or for some social good? If a person is powerful, do they begin to marginalize others who are not so powerful? There are questions about integrity and honesty in leadership. Leadership is not values free. Leaders should be judged not only by the outcomes of their actions, but also by all the means they use to reach these outcomes.
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Ethical Leadership
Socialized Charismatic Leadership
Leadership that conveys values that are other-centered versus self-centered by leaders who model ethical conduct.
Four cornerstones to a “moral foundation of leadership”:
Truth telling
Promise keeping
Fairness
Respect for the individual
LO8; Material pertinent to this discussion is found under “Contemporary Issues in Leadership.”
There are a number of places where ethics and leadership meet. Questions arise about the use of power and charisma: Is charisma used to enhance control over others for the personal gain of the leader, or for some social good? If a person is powerful, do they begin to marginalize others who are not so powerful? There are questions about integrity and honesty in leadership. Leadership is not values free. Leaders should be judged not only by the outcomes of their actions, but also by all the means they use to reach these outcomes.
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Servant Leadership
Servant leaders go beyond their self-interest and focus on opportunities to help followers grow and develop
Don’t use power to achieve ends; emphasize persuasion
Accept stewardship and actively develop followers’ potential
Results in higher level of commitment to supervisor, self-efficacy, and perception of justice
LO9; Material pertinent to this discussion is found under “Contemporary Issues in Leadership.”
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Summary
Leaders provide vision and strategy; managers implement that vision and strategy.
Leaders need to have a vision, they need to communicate that vision, and they must have followers.
Leaders need to adjust their behaviours, depending on the situation and the needs of employees.
Material pertinent to this discussion is found at the end of the chapter.
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OB at Work: For Review
1. How are leadership and management different from one another?
2. What are the conclusions of trait theories of leadership?
3. What are the central tenets and main limitations of behavioural theories of leadership?
4. What is Fiedler’s contingency model?
Material pertinent to this discussion is found at the end of the chapter.
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31. Copyright © 2016 Pearson Canada Inc.
OB at Work: For Review
5. How do charismatic and transformational leadership compare and contrast? Are they valid?
6. What leadership roles are available to non-managers?
7. What is authentic leadership?
8. What are the requirements of ethical leadership?
9. What is servant leadership? How does it make a difference in organizations?
Material pertinent to this discussion is found at the end of the chapter.
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32. OB at Work: For Managers
■ For management positions, hire candidates who exhibit transformational leadership qualities and who have demonstrated vision and charisma.
■ Tests and interviews can help you identify people with leadership qualities.
■ Hire candidates whom you believe are ethical and trustworthy for management roles, and train current managers in your organization’s ethical standards in order to increase leadership effectiveness.
Material pertinent to this discussion is found at the end of the chapter.
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33. OB at Work: For Managers
■ Seek to develop trusting relationships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replacing bureaucratic rules in defining expectations and relationships.
■ Consider investing in leadership training such as formal courses, workshops, rotating job responsibilities, coaching, and mentoring.
Material pertinent to this discussion is found at the end of the chapter.
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