ESSENTIALS OF MANAGEMENT:

An International Perspective
Sixth Edition
Weihrich and Koontz

Chapter 15. Leadership

© 2004 H. Weihrich Chapter 15. Leadership 1

 After studying this chapter, you should
understand:
1. Leadership and its ingredients.
2. The trait approaches to leadership and their limitations.
3. Various leadership styles based on the use of authority.
4. Blake and Mouton's managerial grid and the resulting
extreme leadership styles.
5. The contingency approach to leadership.
6. The path-goal approach to leadership effectiveness.
7. The difference between transactional and transformational
leaders

© 2004 H. Weihrich Chapter 15. Leadership 2

 Defining Leadership
Leadership is the art or process
of influencing people so that
they will strive willingly and
enthusiastically toward the
achievement of group goals

© 2004 H. Weihrich Chapter 15. Leadership 3

 Ingredients of Leadership
1. Leadership as power (see Chapter 9).
2. Leadership as fundamental
understanding of people
3. Leadership as the ability to inspire
followers to apply their full capabilities
4. Leadership as the style and the
development of the organizational
climate
© 2004 H. Weihrich Chapter 15. Leadership 4
 Fundamental Principle of Leadership
Since people tend to follow those who, in
their view, offer them a means of satisfying
their own personal goals, the more managers
understand what motivates their subordinates
and how these motivations operate, and the
more they reflect this understanding in
carrying out their managerial actions, the
more effective they are likely to be as leaders

© 2004 H. Weihrich Chapter 15. Leadership 5

 Leadership Styles Based on Use of
Authority
• The autocratic leader commands and expects
compliance, is dogmatic and positive, and
leads by the ability to withhold or give
rewards and punishment
• The democratic, or participative, leader
consults with subordinates and encourages
participation from them
• The free-rein leader uses his/ her power very
little, if at all, giving subordinates a high
degree of independence in their operations
© 2004 H. Weihrich Chapter 15. Leadership 6
Leadership
Styles
Based on
Use of
Authority

© 2004 H. Weihrich Chapter 15. Leadership 7

 The Managerial Grid
• The grid has two dimensions: concern
for people and concern for production

© 2004 H. Weihrich Chapter 15. Leadership 8

 The Managerial Grid

© 2004 H. Weihrich Chapter 15. Leadership 9

 Leadership as a Continuum

Leadership continuum conceptualizes

leadership as involving a variety of
styles, ranging from one that is highly
boss-centered to one that is highly
subordinate-centered

© 2004 H. Weihrich Chapter 15. Leadership 10

 Fiedler's Contingency Approach to
Leadership
People become leaders not only
because of the attributes of their
personalities but also because of
various situational factors and the
interactions between leaders and
group members

© 2004 H. Weihrich Chapter 15. Leadership 11

Critical Dimensions of the Leadership
Situation (Fiedler)

• Position power
• Task structure
• Leader-member relations

© 2004 H. Weihrich Chapter 15. Leadership 12

 The Path-goal Approach to
Leadership Effectiveness

Path-goal theory suggests that the

main function of the leader is to clarify
and set goals with subordinates, help
them find the best path for achieving the
goals, and remove obstacles

© 2004 H. Weihrich Chapter 15. Leadership 13

 Transactional and Transformational
Leadership
• Transactional leaders identify what
subordinates need to do to achieve
objectives, clarify organizational roles and
tasks, set up an organization structure,
reward performance, and are considerate for
the social needs of its followers
• Transformational leaders articulate a vision
and inspire followers. They have the capacity
to motivate, shape the organizational culture,
and create a climate favorable for
organizational change
© 2004 H. Weihrich Chapter 15. Leadership 14