LEARNING OUTLINE

Follow this Learning Outline as you read and study this chapter.

Managers versus Leaders

Contrast leaders and managers.
Explain why leadership is an important behavioral topic.

Early Leadership Theories

Discuss what research has shown about leadership traits.
Contrast the findings of the four behavioral leadership
theories.
Explain the dual nature of a leaders behavior.

Contingency Theories of Leadership

Explain how Fiedlers theory of leadership is a
contingency model.
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172

L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.

Contingency Theories of Leadership

Contrast situational leadership and the leader
participation model.
Discuss how path-goal theory explains leadership.

Cutting Edge Approaches to Leadership

Differentiate between transactional and transformational
leaders.
Describe charismatic

Leadership Issues in the Twenty-First Century

Tell the five sources of leaders power.
Discuss the issues todays leaders face.

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173

L E A R N I N G O U T L I N E (contd)
Follow this Learning Outline as you read and study this chapter.

What Is An Organization?
Describe the characteristics of an organization.
Explain how the concept of an organization is changing.

Why Study Management?

Explain the universality of management concept.
Discuss why an understanding of management is
important even if you dont plan to be a manager.
Describe the rewards and challenges of being a manager.

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174

Steve jobs
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175

Bill gates
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176

Nelson Mandela
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177

LEADERSHIP

I am more afraid of an army of 100 sheep led by a lion

than an army of 100 lions led by a sheep. Talleyrand
Leadership is the process of influencing a group
toward the achievement of goals.

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178

Managers Versus Leaders

Managers

Leaders

Are appointed to their

position

Are appointed or emerge

from within a work group

Can influence people only

to the extent of the formal
authority of their position

Can influence other

people and have
managerial authority

Implement the change

Dream change

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179

Early Leadership Theories

Trait Theories (1920s-40s)
Leaders like Buddha, Napoleon ,Mao, Churchill, Roosevelt,
Thatcher, Regan are successful because of their traits.
Trait theories of leadership differentiate leaders from nonleaders by
focusing on personal qualities & characteristics.
Theories that consider personality, social, physical, or intellectual
traits to differentiate leaders from nonleaders
Later research on the leadership process identified seven traits
associated with successful leadership:

Drive, the desire to lead, honesty and integrity, self-confidence,

intelligence, job-relevant knowledge, and extraversion.

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1710

Trait Theories (1920s-40s)

The personal qualities and traits
of Indra Nooyi make her a great
leader. Nooyi is CEO and board
chairman of PepsiCo, the second
largest food and beverage firm in
the world. She is described as funloving,
sociable, agreeable, conscientious,
emotionally stable, and
open to experiences. Nooyis personality
traits have contributed to
her job performance and career success.
She joined PepsiCo in 1994 as
head of corporate strategy and was
promoted to president and chief
financial officer before moving into
the firms top management position.
Nooyi has been named one of
the most powerful women in business
and one of the most powerful
women in the world.
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1711

Early Leadership Theories (contd)

Behavioral Theories
Leadership determines on the basis of behavior
Ohio State studies
University of Michigan Studies
Managerial grid

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1712

Early Leadership Theories (contd)

Behavioral Theories (contd)
Ohio State Studies
Identified

1000 dimensions in two catagories of leader

behavior
Initiating structure: the role of the leader in defining his or
her role and the roles of group members. leaders who give
more focus on systems and deadlines.
Consideration: the leaders mutual trust and respect for
group members ideas and feelings. leaders who give more
focus on sharing, participation and support.
A successful leader should play both the roles
1713

Early Leadership Theories (contd)

Behavioral Theories (contd)
University of Michigan Studies
Identified

two dimensions of leader behavior

Employee oriented: emphasizing personal relationships

Production oriented: emphasizing task accomplishment
Research

findings:

Leaders who are employee oriented are strongly

associated with high group productivity and high job
satisfaction.

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1714

Early Leadership Theories (contd)

Managerial Grid
Blake & Mouton proposed this grid
Appraises leadership styles using two dimensions:
Concern

for people
Concern for production

Places managerial styles in five categories:

poor

management
Task management
Middle-of-the-road management
Country club management
Team management
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1715

Early Leadership Theories (contd)

Managerial Grid
Country club
management

Team management

Middle of the road

Poor management

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Task Management

1716

Contingency Theories of Leadership

The Fiedler Model (contd)
Proposes that effective group performance depends
upon the proper match between the leaders style and
the degree to which the situation allows the leader to
control
Assumptions:
A

certain leadership style should be most effective in

different types of situations.
Leaders do not readily change leadership styles.
Matching the leader to the situation or changing the
situation to make it favorable to the leader is required.

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1717

Contingency Theories (contd)

The Fiedler Model (contd)
Least-preferred co-worker (LPC) questionnaire
Determines

leadership style by measuring responses to

18 pairs of contrasting adjectives like pleasant-unpleasant,
efficient-inefficient, open-guarded, supportive-hostile etc.
High score: a relationship-oriented leadership style
Low score: a task-oriented leadership style

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1718

Contingency Theories (contd)

The Fiedler Model (contd)
Situational factors in matching leader to the situation:
Leader-member
relations

Degree of confidence, trust and

respect members have in their leader.

Task structure

Degree to which job are procedurized

( structured/unstructured)

Position power

Power of hiring, firing, disciplinary

actions, salary increases etc.

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1719

Graphic Representation of Fiedlers

Model
Findings
Task oriented leaders
are more successful
when condition is
favorable or
unfavorable
relationship oriented
leaders are more
successful when
condition is moderate

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1720

Contingency Theories (contd)

Path-Goal Model
Developed by Robert house
The term path-Goal is derived from the belief that
effective leaders clarify the path to help their followers to
achieve goals
Model States that the leaders job is to assist his or her
followers in attaining their goals and to provide direction
or support to ensure their goals are compatible with
organizational goals.

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1721

Path-Goal Model
Leaders assume different leadership styles at
different times depending on the situation:
Directive leader

Give specific guidance to accomplish task

Supportive leader

Friendly & shows concern for the needs of

follower

Participative leader

Take suggestions before taking decision

Achievement oriented
leader

Set challenging goals and expects follower to

perform at their highest level

House assumes leaders are flexible and same leader can

display any or all of this behaviors depending on situation
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1722

Path-Goal Model
Two classes of contingency factors that moderate
the leadership style and outcome
Environmental contingency factors
-Outside the control of the employee

Personal characteristics

-part of employees
Environmental factors determine the leadership
behavior where personal characteristics determine how
employee evaluate and interpret the leader.

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1723

Path-Goal Model

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1724

Leader-Member Exchange (LMX) Theory

LMX Premise:
Because of time pressures, leaders form a special
relationship with a small group of followers: the ingroup
This in-group is trusted and gets more time and
attention from the leader (more exchanges)
All other followers are in the out-group and get less
of the leaders attention and tend to have formal
relationships with the leader (fewer exchanges)
Leaders pick group members early in the relationship

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1725

Leader-Member Exchange (LMX) Theory

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1726

Current Approaches to Leadership

Transactional Leadership
Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and
task requirements.

Transformational Leadership
Leaders who inspire followers to transcend their own
self-interests for the good of the organization by
clarifying role and task requirements.
Leaders who also are capable of having a profound
and extraordinary effect on their followers.

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1727

Current Approaches to Leadership (contd)

Houses Charismatic Leadership Theory:
Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors

Four characteristics of charismatic leaders:

Have a vision
Are willing to take personal risks to achieve the vision
Are sensitive to follower needs
Exhibit behaviors that are out of the ordinary

Traits and personality are related to charisma

People can be trained to exhibit charismatic behaviors
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1728

How Charismatic Leaders Influence Followers

A four-step process:
1. Leader articulates an
attractive vision

Vision Statement:
A formal, long-term strategy to attain goals

Links past, present, and future

1. Leader communicates high performance expectations

and confidence in follower ability
2. Leader conveys a new set of values by setting an
example
3. Leader engages in emotion-inducing and often
unconventional behavior to demonstrate convictions
about the vision
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1729

Current Approaches to Leadership

(contd)
Visionary Leadership
A leader who creates and articulates a realistic,
credible, and attractive vision of the future that
improves upon the present situation.
Visionary leaders have the ability to:
Explain

the vision to others

Express the vision not just verbally but through behavior
Extend or apply the vision to different leadership
contexts

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1730

Current Approaches to Leadership

(contd)
Team Leadership Characteristics
Having patience to share information
Being able to trust others and to give up authority

Team Leaders Job

Managing the teams external boundary
Facilitating the team process
Coaching,

facilitating, handling disciplinary problems,

reviewing team and individual performance, training,
and communication

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1731

Current Approaches to Leadership

(contd)
Team Leadership Roles
Liaison with external constituencies
Troubleshooter
Conflict manager
Coach

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1732

Leadership Issues in the 21st Century

Managing Power
Legitimate power
The power a leader
has as a result of his
or her position.
Coercive power
The power a leader
has to punish or
control.
Reward power
The power to give
positive benefits or
rewards.
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Expert power
The influence a leader
can exert as a result of
his or her expertise,
skills, or knowledge.
Referent power
The power of a leader
that arise because of a
persons desirable
resources or admired
personal traits.

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Developing Credibility and Trust

Credibility (of a Leader)
The assessment of a leaders honesty, competence,
and ability to inspire by his or her followers

Trust
The belief of followers and others in the integrity,
character, and ability of a leader.
Dimensions

of trust: integrity, competence, consistency,

loyalty, and openness.

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1734

Providing Online Leadership

Challenges of Online Leadership
Communication
Choosing

the right words, structure, tone, and style for

digital communications

Performance management
Defining,

facilitating, and encouraging performance.

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1735

Empowering Employees
Empowerment
Involves increasing the decision-making discretion of
workers such that teams can make key operating
decisions in develop budgets, scheduling workloads,
controlling inventories, and solving quality problems.

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1736

Gender Differences and Leadership

Research Findings
Males and females use different styles
Women

tend to adopt a more democratic or

participative style unless in a male-dominated job.

Women
Men

tend to use transformational leadership.

tend to use transactional leadership.

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1737

successful leadership
Seven keys to successful leadership
Trusting

in ones subordinates
Developing a vision
Keeping cool
Encouraging risk
Being an expert
Inviting opposition
Simplifying things

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1738