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Learning Objectives


1. Describe how leadership differs from management. 2. Discuss the role of traits and skills in leadership emergence and effectiveness. 3. Explain what determines the effectiveness of a l d leader. 4. Describe the core activities done by all leaders. 5. Describe ethical leadership. 6. Describe e-leadership and how technology influences what effective leaders do. 7. Describe how technology can help new leaders become effective more quickly.



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Chapter Outline

Vignette: Costco 

Ethical Leadership at Costco

What Is Leadership?

Do Leaders Share Certain Characteristics?

Wh t Do What D Leaders L d D Do? ?

What Influences a Leader’s Effectiveness?

How Does Technology Influence the Practice of Leadership?

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What Is Leadership? 

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What Is Leadership?  Leadership


• Guiding and influencing others to work willingly

•At its best, leadership inspires and motivates employees to work hard toward organizational g objectives j

toward the leader’s objectives

•Leaders • set team ggoals • train team members • provide feedback • manage resources • support the team • perform a variety of other roles.

• At its worst, leadership reduces the performance of employees and the organization, and results in unethical behavior and organizational collapse 13 - 5

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Table 13-1. Management Versus Leadership

What Is Leadership?  Is

Leadership Different from Management? •Management is a function that establishes and implements the procedures processes procedures, processes, and practices that help the organization function smoothly



A function Planning Acquiring resources Evaluating Attaining goals

A relationship Building culture Motivating Coaching Building trust

•Leadership is a relationship between the leader and the led 13 - 7

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Figure 13-1. Three Contingencies of Effective Leadership

Effective Leadership

Because leadership enables the attainment of managerial goals, both managerial g and leadership p skills are important to organizational performance.

A leader’s traits and skills • Leader’s styles or behaviors • Combined to fit followers and situation •

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Do Leaders Share Certain Characteristics?

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Table 13-2. Traits and Skills of Leaders Determination: Leaders overcome obstacles and achieve their goals through initiative, drive, dominance, and a motivation to achieve.


A person’s unchanging characteristics that predispose them to act in a certain way

Flexibility: Effective leaders use different styles and motivational techniques depending on the situation and the person being led. Emotional maturity: Effective leaders control their emotions rather than letting their emotions control them. Energy levels: Leaders have the energy to work hard toward their goals and can create excitement and enthusiasm in others. Integrity: Leaders who behave honestly and earn the trust of followers are more effective at motivating them.

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Table 13-2 (cont.) Traits and Skills of Leaders

Table 13-2 (cont.) Traits and Skills of Leaders

Intelligence: Leaders must scan, interpret, and integrate large amounts of information, identify patterns, and devise courses of action based on the information.

Sociability and interpersonal skill: Leaders who are good communicators are able to build trusting relationships with followers.

Internal control orientation: Leaders tend to believe that they are able to control their environment rather than merely reacting to things that happen around them. Job-relevant knowledge: Leaders make decisions and set appropriate goals and strategies based on their understanding of how their unit and firm works. Self-confidence: Leaders who demonstrate self-confidence and a belief that their chosen course of action is correct develop followers who are more committed. 13 - 13

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Do Leaders Share Certain Characteristics?

Do Leaders Share Certain Characteristics?


Gender Important to Leadership?

Institutional biases against women

• We evaluate people more extremely when their behavior violates our stereotypes

Women make up > 45 % of US workforce • Women W led l d only l 15 % F Fortune t 500 companies •

• Ann Hopkins at Price Waterhouse • Objected aggressive woman who must do an aggressive job

• Moral dilemma 13 - 15

What Do Leaders Do?

Do Leaders Share Certain Characteristics? •

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• •

Women • use a more participative style • Have better interpersonal skills

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Ohio State University (Stogdill, 1950s) & University of Michigan (Rensis Likert) Studies •

Concern for Task Results (Initiating structure) • Emphasize the achievement of concrete goals • Planning, Planning organizing organizing, & defining the required tasks

Concern for People (Consideration) • Emphasize the social & emotional need of individuals • Generate trust, respect, work satisfaction, & selfesteem by being respectful & friendly 13 - 18



Being seen as an effective leader requires q sensitivity y to the different leadership expectations of different cultures.

Effective leaders are concerned about both their people and task performance.

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What Do Leaders Do? 

Blake and Mouton’s Managerial Grid •

Leadership styles (values, which are changeable) based on the leader’s • Concern for people • Consideration of team members’ needs & preference • Concern for task results • Focus on efficiency, productivity, & goals

Figure 13-2. Blake and Mouton’s Managerial Grid 13 - 21

Adapted from: Blake, R.R. & Mouton, J.S. (1985). The Managerial Grid III: The Key to Leadership Excellence, 3rd Ed., Houston: Gulf Publishing; The Leadership Grid, Grid International, Inc. Online at: Accessed September 1, 2009.

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What Do Leaders Do? 

Understanding how you tend to lead can help you become more flexible in your leadership style.

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Transformational & Transactional Leadership • Transformational leadership that inspires followers to adopt the values and goals of the leader and put aside their own self-interests for the good of the organization Transformational leaders inspire followers through • Clear vision & mission • Optimism • Enthusiasm • Emotional appeals 13 - 24



What Do Leaders Do?

What Do Leaders Do?

Transformational leaders • Provide personal support & encouragement • Set a good personal example • Behave ethically Followers of TL Connect deeply to the mission Seek ways to improve their performance

 Transformational

leaders affects a wide range

of  Employee


 Motivation  Satisfaction  Commitment C it t  Organizational  Unit

outcomes: performance

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What Do Leaders Do?

What Do Leaders Do?

 Transformational

leaders are Inspirational  Communicate a future vision of the organization that can be shared with followers 2 Considerate 2.  Individualized consideration 3. Intellectually stimulating  Encouraging followers to creatively solve problems in new ways 1.

Transformational & Transactional Leadership • Transactional leadership based on a reciprocal exchange of something of value Transformational & Transactional Leadership complement each other Transactional T ti l style t l workk wellll ffor short h t tterm goall Transformational style work well for long term goals & organizational change Transactional style > practice of management Transformational style > practice of leadership 

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What Do Leaders Do?

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What Do Leaders Do?

 Charismatic

Leadership leaders idealized by followers who develop strong emotional attachments to them Charismatic leaders try to  Increase followers’ commitment to ideological goals  Commitment to the leader

 Charismatic

Leadership Charismatic leaders are self-confident, dominant, extraverted, possess strong t convictions i ti iin th their i b beliefs li f and moral righteousness

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What Do Leaders Do? 

What Do Leaders Do?

Level 5 Leadership (Collins, 2001)  A combination of transactional and transformational leadership styles focused on long-term organizational performance  It requires a combination of personal humility gp professional determination and strong  Are humble & willing to take blame for failure  While simultaneously setting high standards  Demonstrating an unwavering resolve to do whatever it takes to produce the best long-term results

Ethical Leadership (Brown, Trevino, & Harrison, 2005)  the demonstration of normatively appropriate conduct through personal actions and  interpersonal relationships,  and the promotion of such conduct to followers through two-way communication,  reinforcement, and  decision making 

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What Do Leaders Do? 

What Do Leaders Do?

Ethical Leadership  Leaders set an example of others  Followers pay attention to leaders &  The ethical standard they set Because ethical leaders are caring and fair, followers’ relationships with them are built followers upon social exchange and reciprocity norms

Ethical Leadership Research has found that followers’ perceptions of their ethical leaders are positively related to  Followers willingness to report problems to management g Job commitment Satisfaction with their supervisors

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Leading ethically increases subordinates’ commitment, satisfaction, and willingness to report ethical issues.

Effective leaders use both transactional and transformational leadership depending on the situation.

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What Influences a Leader’s Effectiveness?

What Influences a Leader’s Effectiveness?

 Three important variables: 1. Leader-follower relations (LFR) Fiedler felt that this

Contingency theories of leadership:  leadership theories that acknowledge that the appropriateness of any leadership style depends on the nature of the followers and the situation  Fiedler’s Leader Match Model • Leadership Style: Least-Preferred Coworker scale > High VS Low LPC • Degree to which the situation gives the leader control and influence

was the key: “A leader who is liked, accepted, and trusted by his members will find it easy to make his [or her] influence felt” 2. Task structure (TS) If the goals, methods, and performance standards of a task are clear clear, then it is more likely that leaders will be able to exert influence 3. Position power (PP) If an organization or group confers powers on the leader to get the job done, then this may well increase the influence of the leader  Situational control = 4*Z(LFR) + 2*Z(TS) + Z(PP) (Fiedler, 1978, p. 46, not in the book) 13 - 37

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Case Study: Leading a Police Force Transformation

Figure 13-3. Applying Fiedler’s Leader Match Model

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1. Explain how Chief Wearing can exhibit a transformational leadership style in his role as police chief. 2. Describe the environment facing Chief Wearing in terms of leader-member leader member relations, relations task structure structure, and position power. Using Fiedler’s model, what leadership style do you think is most appropriate given the situation you just described? Does this style match Chief Wearing’s? 3. If you were Chief Wearing, how might you use the information you learned in this chapter to enhance the diversity of the police force? 13 - 40

What Influences a Leader’s Effectiveness? Hersey’s Situational Leadership Theory  Telling making the decision and telling the group what to do. This style works best when followers lack confidence or do not know how to do something.  Selling making the decision alone, but explaining the reasons for the decision, then helping followers achieve task completion by persuading them them. This style works well when followers have minimal competence but are confident and willing.  Participating asking group members for input but making the final decision alone. This style is most effective when followers have the ability to do something but require emotional support.  Delegating letting group members decide what to do. This style works best when followers are confident. 

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Figure 13-4. Situational Leadership Model

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What Influences a Leader’s Effectiveness? 

Path-Goal Theory (House, 1995)

What Influences a Leader’s Effectiveness? 

Based on the expectancy theory of motivation Motivation to exert effort is based on a person’s belief that 1. he or she has the ability to accomplish a goal 2. goal accomplishment will lead to rewards 3. these rewards are attractive or valued

Path-Goal Theory 1. Directive Leadership Letting subordinates know what the leader expects of them, giving specific guidance, and scheduling the work. 2. Supportive Leadership Being friendly and showing concern for subordinates subordinates. 3. Participative Leadership Soliciting subordinates’ suggestions and input. 4. Achievement-Oriented Leadership Setting challenging goals, expecting subordinates to perform at their highest level, and showing confidence that subordinates will assume responsibility.

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Table 13-3.

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What Influences a Leader’s Effectiveness?

Fitting Leadership Style to the Situation: Applying Path-Goal Theory

Leader-Member Exchange Theory (LMX)  Leader develop a special relationship with a subset of subordinates (the in-group or wegroup)  Members of the in-group serve as trusted advisors & assistants &  have greater influence,  autonomy, &  tangible benefits in exchange

Source: Adapted from Howell, J. & Costley, D. (2001). Understanding Behavior for Effective Leadership, p. 43; Prentice Hall, Upper Saddle River, NJ. 13 - 45

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What Influences a Leader’s Effectiveness? 

Leader-Member Exchange Theory (LMX)  Members of the out-group (their-group) have less or no input into group decision &  are primarily influenced with position power  Out-group members exchange their compliance with formal role requirements &  Legitimate requests from the leader for the standard benefits of employment & compensation  Being an out-group member can lead to lower rewards, less autonomy, & less influence 13 - 47

Figure 13-5. Leader-Member Exchange (LMX)

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What Influences a Leader’s Effectiveness? 

Leader-Member Exchange Theory (LMX)  Leader-member relationships develop over time as the leader interacts with the followers  The leader’s perceptions of a follower ultimately determine whether the follower becomes part of the in in-group group or out out-group group The follower’s abilities, interpersonal compatibility with the leader, and ingratiation behaviors influence the LMX The leader’s liking and trust of the employee contribute to LMX

What Influences a Leader’s Effectiveness? 

Leader-Member Exchange Theory (LMX)  Research has shown that  In-group members have greater loyalty &  Higher performance than out-group members  Members of a clear out-group are likely to feel  Resentment  Withdrawal effort & participation  More likely to quit

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What Influences a Leader’s Effectiveness?

What Influences a Leader’s Effectiveness?



for Leadership (Kerr & Jermier, 1978)

for Leadership can come form (e.g., their abilities & need for independence) The task (e.g., if it is routine or intrinsically satisfying) The organization (e.g., (e g cohesive workgroups or a high degree of formalization or inflexibility)  Research shows that satisfying work and taskprovided performance feedback prevent a leader’s supportive behaviors from making a difference in task performance Subordinates


factors that make leadership unnecessary, i.e., Empowered members Highly Hi hl competent t t members b Leadership neutralizers are factors that make leadership impossible , i.e., A union contract that prohibits a supervisor from giving workers incentives for high performance 13 - 51

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What Influences a Leader’s Effectiveness?

What Influences a Leader’s Effectiveness?


for Leadership


Coast Guard operations after hurricane Katrina in 2005 While Coast Guard workers usually specialize in certain types of operations They are cross-trained so that they can do other jobs They rescued more than 33,000 people in Louisiana, Mississippi, & Alabama Despite a nearly complete loss of connectivity for extended periods between Air Station New Orleans & the chain of command The complex operation successfully continued because of the workers’ clear objectives, united effort, & flexibility 13 - 53

Followership Leaders and followers exist in a reciprocal, interdependent relationship, and each exists only because of the other Leaders must build a support base by winning followers’ respect Effective followers are important to effective leadership

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What Influences a Leader’s Effectiveness? 

Leadership Effectiveness in Different Cultures  Cultural factors influence the effectiveness of different leadership styles Different cultures have different norms and expectations about leader behavior, power, and influence The effective model for leadership in the Chinese system is the wise and loving father, which results in a paternalistic managerial style This indicates a leadership style that differs from the style of Western cultures

What Influences a Leader’s Effectiveness? 

Leadership Effectiveness in Different Cultures

The GLOBE team, has studied in 62 cultures, identified attributes responsible for a leader’s effectiveness or ineffectiveness  Culturally contingent attributes differed across different cultures as to a leader’s leader s effectiveness

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What Influences a Leader’s Effectiveness? Global Issues: The Effect of Culture on Perceptions of Leaders’ Attributes Universal positive leader attributes:

Universal negative leader attributes:

culturally contingent leader attributes:


 Irritable

Cunning (หลอกลวง)




Excellence oriented


Evasive (หลบหลีก)


Ruthless (ไรความปรานี)

Risk taker




Formal leaders are not always l necessary ffor hi high h performance.

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How Does Technology Influence the Practice of Leadership? 

How Does Technology Influence the Practice of Leadership?

E-Leadership 1.E-leaders must use more participative styles to address global and local situational demands of decision making 2.E-leaders must become more comfortable with developing, managing, and maintaining relationships without having direct personal control and oversight 3. E-leaders must be able to build relationships and trust with and among team members 13 - 59

E-Leadership 4. E-leaders must become comfortable with using technology to communicate,  influence,  motivate, and  inspire others

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How Does Technology Influence the Practice of Leadership? 

How Can Technology Help New Leaders? • CD-ROMs

Because virtual teams rarely meet face-to-face, e-leaders must facilitate group processes and d relationships through technology.

• PDAs

(Personal Digital Assistants) • Web-based tool kits • Communities C i i off practice i • Online leadership development • Mixed modes of training and development • Using the Intranet to build culture 13 - 61

Summary and Application

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Discussion Questions

Effective leaders balance their own traits and skills and their leadership styles or behaviors in a way that best fits the followers and is most appropriate for the situation at hand. Effective leaders are flexible, and adapt their style to the follower and to the situation.

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1. Describe an effective leader with whom you are familiar. Now describe an ineffective leader with whom you are familiar. How do they differ? What could the ineffective leader do to be more effective? 2 Should all managers be leaders? Why or why not? 2. 3. When would transactional leadership be preferred to transformational leadership? 4. What are some common barriers preventing leaders from behaving ethically? How can these barriers be overcome?

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Personal Competitive Advantage Exercise: What Is Your Leadership Potential?

Discussion Questions (cont.) 5. When should leaders focus on the task and not on the people doing the task? 6. Do you feel that it is possible for leadership substitutes to be effective? Why or why not? 7 What advice would you give a leader on managing 7. people from multiple cultures?

0----------5----------10----------15----------20----------25----------30----------35 Low High Leadership Leadership Potential Potential

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Organizational Competitive Advantage Exercise: Tasty Beverages Working alone or in a small group, imagine that you are the CEO or the executive team of soft-drink maker Tasty Beverages. The company’s performance has been slipping, and you have decided that the company should add a line of snack foods including pretzels and p p potato chips p to yyour p product line. This is a big g change g for your company, and you know that you will need the full support of your employees to make the new strategy work. Using what you learned in this chapter, how would you lead Tasty Beverages through this change? What leadership style(s) would you use? Why? There is more than one way to be an effective leader; be honest regarding your personal leadership style and beliefs.

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Exercise: Cisco’s John T. Chambers 1. Why do you think that Cisco employees would be motivated by a CEO like Chambers? 2. What leadership style do you think best describes Chambers? Why? 3. How does Chambers justify changing Cisco’s business structure from command and control to teamwork and collaboration? 13 - 68

Exercise: The Importance of Leadership 1. What is the importance of business leadership to society? 2 What is the role of inspiration in great leadership? 2. 3. Where do you think leadership can make the most difference in the next ten years? Explain your answer.

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