CHAPTE

11
Leadership

Copyright 2016 Pearson Canada

Inc.

Chapter Outline
What is Leadership?
Leadership as Supervision
Trait Theories: Are Leaders Different from
Others?
Behavioural Theories: Do Leaders Behave in
Particular Ways?
Contingency Theories: Does the Situation
Matter?
Substitutes for Leadership

Inspirational Leadership
Charismatic Leadership
Transformational
Leadership
Copyright 2016 Pearson Canada
Inc.

Chapter Outline
Contemporary Leadership Roles

Mentoring
Self-Leadership (or Self-Management)
Team Leadership
Online Leadership
Leading without Authority

Contemporary Issues in Leadership

Authentic Leadership
Ethical Leadership
Servant Leadership
Copyright 2016 Pearson Canada
Inc.

Learning Outcomes
1. Define the term "leadership".
2. Explain the difference between
managers and leaders.
3. Differentiate between transformational
and transactional leaders/leadership.
4. Critique different leadership theories
to determine leadership style including
the concepts of traits, behavioural,
contingency.
Copyright 2016 Pearson Canada
Inc.

Learning Outcomes
5. Identify contemporary issues in leadership
such as mentoring, self leadership, team
leadership, online leadership and leading
without authority.
6. Develop strategies that consider the
implications of the following leadership issues:
authentic leadership, moral leadership and
gender differences, on organizational
effectiveness.

Copyright 2016 Pearson Canada

Inc.

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
Copyright 2016 Pearson Canada
Inc.

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
Copyright 2016 Pearson Canada
Inc.

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?
Copyright 2016 Pearson Canada
Inc.

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.
Copyright 2016 Pearson Canada
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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
Copyright 2016 Pearson Canada
Inc.

Contingency Theories: Does the Situation

Matter?
Stress the importance of considering
the context when examining
leadership.
Fiedler Contingency Model
Hersey and Blanchards Situational
Theory
Path-Goal Theory
Substitutes for Leadership
Copyright 2016 Pearson Canada
Inc.

Fiedler Contingency Model

Effective group performance depends upon
the proper match between the leaders 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.
Copyright 2016 Pearson Canada
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Fiedler Contingency Model

Fiedlers 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 individuals leadership style is fixed.

Copyright 2016 Pearson Canada

Inc.

Hersey and Blanchards Situational

Leadership
A model that focuses on follower readiness
Followers can accept or reject the leader
Effectiveness depends on the followers response to the
leaders actions
Readiness is the extent to which people have the
ability and willingness to accomplish a specific task

A paternal model:
As the child matures, the adult releases more and more
control over the situation
As the workers become more ready, the leader becomes
more laissez-faire

An intuitive model that does not get much

support from the research findings
Copyright 2016 Pearson Canada
Inc.

Hersey and Blanchards Situational

Leadership
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.
Copyright 2016 Pearson Canada
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Exhibit 11-1 Hersey & Blanchards Situational

Leadership

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Path-Goal Guidelines to Be Effective

Determine the outcomes subordinates want.
e.g., good pay, job security, interesting work, and
autonomy to do ones job, etc.

Reward individuals with their desired outcomes

when they perform well.
Be clear with expectations.
Let individuals know what they need to do to receive
rewards (the path to the goal).
Remove barriers that prevent high performance.
Express confidence that individuals have the ability to
perform well.
Copyright 2016 Pearson Canada
Inc.

Path-Goal Leadership Styles

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.
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Exhibit 11-2 Path-Goal Theory

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Substitutes for Leadership

Substitutes for Leadership: Leader
behaviours are not needed (i.e.,
employee experience, training, explicit
formalized goals, rigid rules and
procedures, cohesive work groups)
Neutralizers of Leadership: make it
impossible for leader behaviour to make
any difference
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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

Copyright 2016 Pearson Canada

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Charismatic Leadership
Charisma
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.

Copyright 2016 Pearson Canada

Inc.

Charismatic Leadership
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 followers 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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Exhibit 11-4 Key Characteristics of Charismatic

Leaders

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How Charismatic Leaders Influence

Followers?
1. Leader articulates an attractive vision
Vision Statement: A formal, long-term
strategy to attain goals
Links past, present, and future
2. Leader communicates high performance
expectations and confidence in follower ability
3. Leader conveys a new set of values by setting an
example
4. Leader engages in emotion-inducing and often
unconventional behavior to demonstrate
convictions about the vision
Copyright 2016 Pearson Canada
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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 followers 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 organizations goals
Copyright 2016 Pearson Canada
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Beyond Charisma: Level-5 Leaders

Very 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
Copyright 2016 Pearson Canada
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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
Copyright 2016 Pearson Canada
Inc.

Characteristics of Transactional Leaders

Contingent reward

Contracts exchange of rewards for effort,

promises rewards for good performance,
recognizes accomplishments.

Management by exception (active)

Watches and searches for deviations from

rules and standards, takes corrective action.

Management by exception (passive)

Intervenes only if standards are not met.

Laissez-faire leader

Abdicates responsibilities, avoids making

decisions.
Copyright 2016 Pearson Canada
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Characteristics of Transformational Leaders

Idealized influence
Provides vision and sense of mission, instills pride, gains
respect and trust.

Inspirational motivation
Communicates high expectations, uses symbols to focus
efforts, expresses important purposes in simple ways.

Intellectual stimulation
Promotes intelligence, rationality, and careful problemsolving.

Individualized consideration
Gives personal attention, treats each employee
individually, coaches, advises.
Copyright 2016 Pearson Canada
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Exhibit 11-5 Characteristics of Transactional

& Transformational Leaders

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Issues with Transformational Leadership

Basis for Action
Transformational leadership works by encouraging followers to
be more innovative and creative and by providing ambitious
goals

Evaluation Based on the Research

This theory does show high correlations with desired outcomes
This style of leadership can be taught

Transformational vs. Charismatic Leadership

Similar concepts, but transformational leadership may be
considered a broader concept than charisma.
Instrument-based testing shows the measures to be roughly
equivalent
Copyright 2016 Pearson Canada
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Mentoring
Mentor:
A senior employee who sponsors and
supports a less-experienced employee (a
protg)
Good teachers present ideas clearly, listen,
and empathize
Two functions:
Career
Coaching, assisting, sponsoring
Psychosocial
Counseling, sharing, acting as a role model
Copyright 2016 Pearson Canada
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Mentoring
Mentor (Contd):
Mentoring relationships can be formal or
informal
Many organizations have created formal
programs to ensure mentoring relationships
are available
Should benefit both the mentor and protg
Formal relationships are often not as effective
as informal ones
Mentor commitment and protg input into the
relationship are critical
Copyright 2016 Pearson Canada
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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?

1. Model self-leadership
2. Encourage employees to create self-set goals
3. Encourage the use of self-rewards to
strengthen and increase desirable behaviours
4. Create positive thought patterns
5. Create a climate of self-leadership
6. Encourage self-criticism
Copyright 2016 Pearson Canada
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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
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Online Leadership
Identification-Based Trust
based on a mutual understanding of each others intentions
and appreciation of each others 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
Copyright 2016 Pearson Canada
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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.
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Contemporary Issues in
Leadership
Authentic Leadership
Ethical Leadership
Servant Leadership

Copyright 2016 Pearson Canada

Inc.

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

Copyright 2016 Pearson Canada

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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

Copyright 2016 Pearson Canada

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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

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Global Implications
Brazil

team oriented, participative, and humane.

France

relatively task oriented will do best and can make

decisions in a relatively autocratic manner

Egypt

participative yet demonstrate ones status. The leader

should ask employees for their opinions, try to minimize
conflicts, and not be afraid to take charge and make the
final decision (after consulting team members).

China

Chinese culture emphasizes being polite, considerate,

and unselfish, but it also has a high performance
orientation.
suggest that a moderately participative style may work
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2016 Pearson Canada
best with Chinese
employees.
Inc.

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
organizations ethical standards in order
to increase leadership effectiveness.
Copyright 2016 Pearson Canada
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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.
Copyright 2016 Pearson Canada
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Breakout Group Exercises

Form small groups to discuss the following:
1. Identify an example of someone you thought was a good
leader (currently or in the past). What traits did they
have? How did these traits differ from someone you
identify as a bad leader?
2. Identify a situation when you were in a leadership
position (in a group, in the workplace, within your family,
etc.). To what extent were you able to use a contingency
approach to leadership? What made that easier or more
difficult for you?
3. When youve worked in student groups, how frequently
have leaders emerged in the groups? What difficulties
occur when leaders are leading peers? Are there ways to
overcome these difficulties?
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Concepts to Skills: Practising to Be

Charismatic
Project a powerful, confident, and
dynamic presence.
Articulate an overarching goal.
Communicate high-performance
expectations and confidence in
others ability to meet these
expectations.
Be sensitive to the needs of followers.
Copyright 2016 Pearson Canada
Inc.