Ledership course

CHAPTER 1
The Nature and Importance of Leadership

The introductory chapter has several important purposes. Readers are given a detailed description of
the meaning of leadership. Although most readers have studied something about leadership, most can
benefit from a refresher and an update. Another important purpose of the chapter is to explain the
various leadership (not management) roles and the various rewards and frustrations contained in
those roles. Finally, this chapter presents a framework and model for understanding leadership and
explains how leadership skills are developed.

CHAPTER OUTLINE AND LECTURE NOTES
I.THE MEANING OF LEADERSHIP

To be a leader, one has to make a difference and facilitate positive changes. Leaders inspire
and stimulate others to achieve worthwhile goals. A useful definition of leadership is the ability
to inspire confidence and support among the people who are needed to achieve organizational
goals.

A. Leadership as a Partnership

A current perspective on leadership is that it constitutes a partnership, being
connected to another in such a way that the power between the two is approximately
balanced. Partnership occurs when control shifts from the leader to the group member.
According to Peter Block, a partnership involves (a) an exchange of purpose, (b) the right to
say no, (c) joint accountability, and (d) absolute accountability. A closely related idea is
stewardship theory that depicts group members (or followers) as being collectivists, pro-
organizational, and trustworthy.

B. Leadership Versus Management

Leadership is but one of the four major functions of management (planning,
organizing, controlling, and leading). Current thinking emphasizes that leadership deals with
change, inspiration, motivation, and influence. In contrast, management deals more with
maintaining equilibrium and the status quo. Table 1–1 summarizes these differences. Locke
simplifies matters by stating that the leader creates a vision, and the manager implements
it. Despite these distinctions, organizational leaders must still be good managers, and
effective managers must also carry out leadership activities.

II. THE IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE

An important justification for studying leadership is that leaders affect organizational
performance. Many faltering business firms and athletic teams bring in a new top leader to
spearhead a turnaround.

A. Research and Opinion: Leadership Does Make a Difference

A smattering of evidence supports the contention that leadership affects
organizational performance. A team of researchers investigated the impact of transactional
(routine) and charismatic (inspirational) leadership on financial performance, as measured
by net profit margin. They found that transactional leadership was not related to
performance, and that charismatic leadership was most strongly related to performance in
an uncertain environment. A case example is that Allen Questrom achieved some good
results in attempting to turn around a poorly performing J.C. Penney. Whether or not
leaders do make a difference, organization members perceive that they do, as suggested
by attribution theory, the process of attributing causality to events.

B. Research and Opinion: Formal Leadership Does Not Make a
Difference

According to the antileadership argument, leadership has a smaller impact on
organizational outcomes than do situational forces.

1. Substitutes for Leadership. One viewpoint is that many organizations
contain substitutes for leadership, factors in the work environment that provide
guidance and incentives to perform, making the leader’s role almost superfluous. These
substitutes for the leader and the leadership function include closely knit teams of highly
trained individuals, intrinsic satisfaction, computer technology (monitoring of work by
computer), and professional norms. Jim Collins, author of Good to Great, believes that
corporate leaders are slaves of much larger forces. He concludes that Jack Welch was
the product rather than the producer of General Electric’s success during his long reign.

2. Leader Irrelevance. Pfeffer argues that leadership is irrelevant to most
organizational outcomes because factors outside the leader’s control are important.
Part of the argument is that leaders have limited control over resources, and that top
leaders whose values are compatible with those of the firm are chosen. We believe
strongly that despite these constraints leaders still have key roles.

3. Complexity Theory. This theory holds that organizations are complex
systems that cannot be explained by the usual rules of nature. Leaders and managers
can do little to alter the course of the complex organizational system.

III. LEADERSHIP ROLES

Understanding leadership roles helps explain leadership. A role is an expected set of activities
or behaviors stemming from the job. The nine leadership roles covered here are:

1. Figurehead (ceremonial activities).
2. Spokesperson (keeping key groups informed about the activities of the
organization or organizational unit).
3. Negotiator (making deals with others for needed resources).

4. Coach and motivator (recognizing achievement, giving feedback, and giving
suggestions for performance improvement).
5. Team builder (building an effective team).
6. Team player (being a good team member oneself).
7. Technical problem solver (advising others on solving problems and being an
individual contributor).
8. Entrepreneur (suggesting innovative ideas and furthering the business).
9. Strategic planner (setting a direction for the organization, helping the firm deal
with the external environment, and policy setting).

An important implication of these roles is that managers at all levels can and should exert
leadership.

IV. THE SATISFACTIONS AND FRUSTRATIONS OF BEING A LEADER

Being a leader offers many joys but also some frustrations. Because most readers of this book
aspire toward leadership positions or currently occupy such a position, this information allows
for meaningful class discussion.

A. Satisfactions of Leaders

The specific satisfactions of leaders are somewhat a function of the leadership
position. Nevertheless, here is a list of satisfactions that may be present in varying degrees
in many leadership situations:

1. A feeling of power and prestige.
2. A chance to help others grow and develop.
3. High income.
4. Respect and status.
5. Good opportunities for advancement.
6. A feeling of “being in on” things.
7. An opportunity to control money and other resources.

B. Dissatisfactions and Frustrations of Leaders

Despite the glory of being a leader, occupying a leadership or management
role has many built-in potential frustrations:

1. Too much uncompensated overtime.
2. Too many “headaches.”
3. Not enough authority to carry out responsibility.
4. Loneliness (being a leader limits the number of people one
can confide in).
5. Too many problems involving people.
6. Too much organizational politics.
7. The pursuit of conflicting goals (the central theme of these dilemmas
is attempting to grant others the authority to act independently, yet still get them
aligned).

V. A FRAMEWORK FOR UNDERSTANDING LEADERSHIP

Certain major sets of variables influence leadership effectiveness. The basic assumption
underlying the framework is as follows:
L = f (l, gm, s)

This formula means that the leadership process is a function of the leader, the group members,
and other situational variables. The model presented in Figure 1–2 extends the situational
perspective. The model states that leadership effectiveness can best be understood by
examining its key variables: leader characteristics and traits, leader behavior and style, group
member characteristics, and the internal and external environment. The four sets of variables
are interrelated, with some linkages stronger than others. An example of a strong link is that
leader characteristics and traits affect leader behavior and styles.

VI. SKILL DEVELOPMENT IN LEADERSHIP

Leadership skills are in high demand. Developing leadership skills is more complex than
developing a structured skill, yet these skills can be developed by following a general learning
model:

1. Conceptual knowledge and behavioral guidelines.
2. Conceptual information demonstrated by examples and brief
descriptions of leaders in
action.
3. Experiential exercises. Cases, role plays, and self-assessment
quizzes are included
here.
4. Feedback on skill utilization, or performance, from others.
Implementing some of the
skills outside the classroom will provide opportunities for feedback.
5. Practice in natural settings. A given skill has to be practiced many
times in natural
settings before it becomes integrated comfortably into a leader’s
mode of operation.

VII. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT

Although the thousands of leadership studies published often conflict, the discipline of
leadership offers much useful information. The approach recommended here for applying
leadership information is to choose the formulation that seems to best fit the leadership situation
at hand. For example, a leader might need to combine creative problem solving and emotional
support to members to help the team rebound from a crisis.

COMMENTS ON EXPERIENTIAL EXERCISES
Leadership Self-Assessment Quiz 1-1: Readiness for the Leadership Role
The first self-examination exercise in the text has considerable face validity. The student reflects on a
series of attitudes and behaviors that are part of the leadership role. An intended byproduct of this
exercise is that people may have to develop a more positive attitude toward key aspects of a leader’s
job if they are to become effective leaders.
Like most of the instruments in the text, the Readiness for the Leadership Role quiz is intended
for self-reflection and possibly for research. Such quizzes should not be interpreted as validated
psychological instruments.

Leadership Skill-Building Exercise 1-1: Identifying Leadership Roles
Students usually cover the full gamut of roles in this type of exercise, thus prompting a practical view of
leadership roles. Several examples of this role analysis follow: (1) Questrom repeats vision, indicating
the strategic planner role; (2) “A business isn’t run by one person. It’s run by teams,” suggesting the
team builder and team player roles; (3) the veteran retailer has been charming employees, customers,
and creditors for years, perhaps indicating the coach and motivator roles; (4) trying to get back to
Penney’s roots as a department store of choice for middle-income Americans, indicating the strategic
planner role; (5) plan to centralize purchasing could be classified as the direction-setting aspect of the
strategic planner role; and (6) the only way to boost morale is to start making money again, suggesting
the coach and motivator role.

Leadership Skill-Building Exercise 1-2: What It Takes to Be a Leader
An insight to be gleaned from this exercise and similar ones in the text is that an important part of
leadership skill building is to try out new ideas one at a time, and then observe any difference in
impact.

COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES
1. What would be several practical problems stemming from the idea that the leader creates a
vision, whereas the manager implements it?

One practical problem with this dichotomy is that the leader would appear to be making a
contribution only when he or she spells out a vision. At other times the leader should be spending
time gathering information to formulate a vision.

2. In recent years there have been dozens of financial scandals involving business executives (such
as the problems at Enron and Global Crossing). What impact has this information had on your
interest in becoming, or remaining, a leader in a business setting?

Many students may still be interested in pursuing a leadership career in business for such varied
reasons as (a) just a handful of crooked CEOs have been involved in the scandals, (b) good
opportunities await an honest leader, and (c) “I never realized you could make so much money
as an executive, so deal me in.”

3. Give an example of how you have exerted leadership on or off the job in a situation in which you
did not have a formal leadership position. Explain why you describe your activity as leadership.

Relevant examples here center on taking the initiative to accomplish something important, and
involving others in the activity. Examples include starting an employee network group, a recycling
campaign, an employee or student study group, or organizing a field trip. Both the initiative
aspect and influencing others indicate the exercise of leadership.

4. What would a boss of yours have to do to demonstrate that he or she is an effective leader and
an effective manager?

To demonstrate effectiveness as a leader and manager, the boss should engage in such
activities as inspiring group members, creating a useful vision, bringing about constructive
change, and maintaining a well-organized department.

5. Identify a business or sports leader who you think is highly effective. Present your observations
to the class.
Leaders are usually classified as effective on the basis of the results they achieve. Students will
therefore probably choose leaders with highly visible accomplishments. Effective sports leaders
would include Phil Jackson (now the Los Angeles Lakers head coach) and Pat Summit (the
Tennessee Lady Vols basketball coach). Despite mixed reactions to his personality, many
students will nominate Bill Gates of Microsoft. Jeff Bezos of Amazon.com might also receive
several nominations because of his key position in launching ecommerce.

6. Based on an informal survey, many people who were voted “the most likely to succeed” in their
high school yearbooks became leaders later on in their career. How can you explain this finding?

Many basic leadership traits and behaviors are formed early in life and persist throughout
adulthood. Among these characteristics are extroversion, enthusiasm, drive, and a willingness to
assume responsibility.

7. Martha Stewart is an inspiration to millions of people, yet at the same time she is criticized by
many for her strong ambition and her controlling, perfectionist tendencies. She is even the
subject of many jokes. What does this contradictory information tell you about leadership?

The mixed reactions visible leaders receive indicates the concept of leadership polarity (see
Chapter 3) whereby leaders are adored by some constituents and disliked by others. Or, simply
put, being a disliked leader “comes with the territory.” The variety of attitudes toward Martha
Stewart also suggest that being exceptionally successful triggers envy and resentment.

8. After reading this chapter, do you believe that a person who is not a “born leader” still has a good
chance of becoming an effective leader? Explain.

We hope that all potential leaders would realize that many of the characteristics, attitudes,
behaviors, and skills of leaders can be learned. Even without great inherited talent, a person
could therefore accomplish many of the things that effective leaders accomplish.

9. Top-level leaders of major business corporations received some of the highest compensation
packages in the workforce. Why are business leaders paid so much?

One reason for the higher pay of leaders is that their work affects so many people, thus giving
their job greater scope. Another factor is that leadership is a rare talent, and takes longer to
develop than technical skill. For example, a highly talented teenager may learn how to install a
web site in several days but could not learn how to be a top-level corporate leader in such a short
time period. (Many critics think top executives are vastly overpaid in comparison to lower-ranking
workers who also make an important contribution to corporate performance.)

10. Which of the nine leadership roles do you think you are the most suited for at this stage in your
career? Explain your reasoning.

During early career stages most people are best suited for the technical problem-solver role. The
reason is that most careers begin by engaging in a technical specialty. Another possible
leadership role for many career beginners is the team player role, also based on experience.
Many students taking a leadership course may have enough leadership and management
experience to be well suited for other leadership roles.

PLAUSIBLE RESPONSES TO CASE QUESTIONS
Leadership Case Problem A: Big Jeff Immelt Faces the Future at GE
A major theme of this introductory case is the complexity and demanding nature of a top-level
executive position.

1. What leadership challenges does Immelt face?

First, Immelt must establish a strong presence to think of himself primarily as Jeff Immelt rather
than as the replacement for Jack Welch. The public criticism that surfaced in 2002 about Welch’s
hidden forms of compensation during both his reign and his retirement may have helped Immelt.
Replacing a tarnished image beats replacing a superhero. Another major challenge is
maintaining growth in profits more through operations than acquisitions and creative forms of
accounting. Another challenge is to spearhead a drive for efficiency in an already efficient
company.

2. What can Immelt and the rest of the executive team do to convince financial analysts that GE is
truthful about its earnings?

A key antidote would be more disclosure of how earnings were obtained, and to become more of
a transparent organization. Immelt might make the dramatic move of inviting an audit of GE’s
books by an auditor chosen by financial analysts or journalists. A complete audit would be
prohibitive in cost, but perhaps the auditor’s report could be audited.

3. Which leadership roles does Immelt appear to be emphasizing?

Immelt was somewhat of a figurehead in his early days, as he crisscrossed the globe to meet
stakeholders and transfer relationships to himself. He occupied the strategic planner role when
he pushed the firm more into services. Immelt was somewhat of a technical problem solver as he
explained to outsiders that he is not an earnings cheat. In dealing with outsiders over the
accounting issues, Immelt was a spokesperson.

Leadership Case Problem B: Jen Lee Wants the Fast Track
The case history of the young business analyst illustrates that rising into a formal leadership position in
a complex organization can be challenging.

1. Who has the problem here? Jen or the consulting firm in question?

Jen has more of a problem than does the consulting firm because she appears to believe that
she is entitled to becoming a formal leader, based on her assessment of her credentials.

2. What advice can you offer Jen to help her increase her chances of occupying a formal leadership
position in the company?

Jen must continue to take the initiative on important work issues, and look for ways to
demonstrate that she can influence people. In dealing with clients, she might look for ways to

increase the services of the firm because developing business is a major success factor in a
consulting firm. She might also volunteer to serve on committees and task forces within the firm.
3. What is your evaluation of the advice Ken offered Jen?

Ken’s advice is sound. In a competitive situation when leadership positions are scarce, a person
has to demonstrate her leadership capability before being promoted.

CHAPTER 2
Traits, Motives, and Characteristics of Leaders

The purpose of this chapter is to present a comprehensive description of the personal qualities of
leaders. Such a presentation does not imply that the great person theory is more valid or important
than other explanations of leadership. Nevertheless, “having the right stuff” contributes to leadership
effectiveness in many situations.

The belief that certain personal characteristics and skills contribute to leadership effectiveness in many
situations is the universal theory of leadership. Old as well as new research concludes convincingly
that effective leaders are made of the right stuff. A current presentation of this research is The
Essence of Leadership by Locke.

I. PERSONALITY TRAITS OF EFFECTIVE LEADERS

Possessing certain characteristics contributes to leadership effectiveness in many situations
as long as the leader’s style fits the situation reasonably well.

A. General Personality Traits

A general personality trait in the context used here is a trait that would be
observable within or outside the context of work. The same general traits are related to
success and satisfaction in both work and personal life.

1. Self-Confidence. In almost every leadership setting, it is important for
the leader to be realistically self-confident. Self-confidence is akin to being cool under
pressure.

2. Humility. Being humble at the right times also contributes to
leadership effectiveness. Part of humility is admitting that you don’t know everything,
and admitting your mistakes to team members and outsiders. According to Jim Collins,
Level 5 Leaders are modest, yet determined to achieve their objectives.

Trustworthiness. Group members consistently believe that leaders must
display honesty, integrity, and credibility, thus engendering trust. Leaders themselves
believe that honesty makes a difference in their effectiveness. The popular cliché,
“Leaders must walk the talk,” holds true. Also helpful is telling the truth
and conducting yourself in the way that you ask others to conduct themselves.

4. Extroversion. Being extroverted contributes to leadership
effectiveness, and extroverts are more likely to want to assume a leadership role and
participate in group activities.

5. Assertiveness. Assertiveness refers to being forthright in expressing
demands, opinions, feelings, and attitudes. Being assertive helps leaders perform tasks
such as confronting group members, demanding higher performance, and making
legitimate demands on higher management.

6. Emotional Stability. Emotional stability refers to the ability to control
one’s emotions sufficiently that one’s emotional responses are appropriate to the
occasion. Stability helps because group members expect and need consistency in the
way they are treated.

7. Enthusiasm. Group members respond positively to enthusiasm, partly
because enthusiasm may be perceived as a reward for constructive behavior.
Enthusiasm also helps build good relationships with team members.

8. Sense of Humor. The effective use of humor is considered an
important part of a leader’s role. Humor helps dissolve tension and defuse conflict. Self-
effacing humor is the choice of comedians and organizational members alike.

9. Warmth. Warmth, which facilitates the establishment of rapport with
group members, is a key component of charisma, and it facilitates providing emotional
support.

10. High Tolerance for Frustration. Leaders encounter so many frustrations that
they need high tolerance for frustration, or the ability to cope with the blocking of goal
attainment.

B. Task-Related Personality Traits

Certain personality traits of effective leaders are closely associated with task
accomplishment even though they appear to be more accurately classified as traits than as
behavior.

1. Passion for the Work and the People. A dominant characteristic of
effective leaders is their passion for their work, and to some extent for the people who
help them accomplish the work. Passion for the work is especially evident in
entrepreneurial leaders and small-business owners who are preoccupied with growing
their business. Being passionate about the nature of the business can be a major
success factor in its survival.

2. Emotional Intelligence. How well a person manages his or her
emotions and those of others influences leadership effectiveness. Emotional
intelligence refers to qualities such as understanding one’s feelings, empathy for
others, and the regulation of emotions to enhance living. Four key factors are included
in emotional intelligence, according to a recent conception: (1) self-awareness helps
you understand your impact on others; (2) self-management is the ability to control
one’s emotions and act with honesty and integrity in a consistent and adaptable
manner; (3) social awareness includes having empathy for others and having intuition
about organizational problems; (4) relationship management includes the interpersonal
skills of communicating clearly and convincingly, disarming conflicts, and building
strong personal bonds. New research suggests that a leader’s moods and associated
behaviors greatly influence bottom-line performance. A sense of humor is the most
contagious mood.

3. Flexibility and Adaptability. A leader must be flexible and adaptable
enough to cope with change, especially because a leader is someone who facilitates
change. Flexibility, or adjusting to situations, has long been recognized as an
important leadership characteristic.

4. Internal Locus of Control. People with an internal locus of control
believe that they are the primary cause of events happening to them. A leader with an
internal locus is perceived as more powerful than one with an external locus because
he or she assumes responsibility for events.

5. Courage. Leaders need the courage to take risks and to take the
initiative. Courage in the present context refers to behaviors such as prudent risk taking,
facing responsibility, and a willingness to put one’s reputation on the line.

II. LEADERSHIP MOTIVES

Leaders can be differentiated from nonleaders and ineffective leaders in terms of their motives
and needs. The motives described here are task-related.

A. The Power Motive

Effective leaders have a strong need to control resources. They vigorously
exert power, think about how to alter the behavior of others, and care about status.

1. Personalized Power Motive. Leaders with a personalized power
motive seek power mostly to further their own interests, and enjoy dominating others.
Donald Trump is an extreme example.

2. Socialized Power Motive. Leaders with a socialized power motive use
power primarily to achieve organizational goals or a vision. These leaders are less
defensive than those with a personalized power motive, and they are more willing to
accept expert advice.

B. Drive and Achievement Motive. Leaders are known for the strong effort they
invest in achieving work goals. Drive refers to a propensity to put high energy into achieving
goals. Achievement motivation refers to finding joy in accomplishment for its own sake.

C. Strong Work Ethic. Effective leaders typically have a strong work ethic, a firm
belief in the dignity of work. A strong work ethic helps the organizational leader believe that
the group task is worthwhile.

D. Tenacity. Leaders are better than nonleaders at overcoming obstacles.
Tenacity multiplies in importance for organizational leaders because it can take so long to
implement a new program. As Bennis contends, the central ingredient of power is purpose.

III. COGNITIVE FACTORS AND LEADERSHIP

Mental ability as well as personality is important for leadership success. Problem-solving and
intellectual skills are referred to collectively as cognitive factors.

A. Knowledge of the Business or Group Task

An effective leader has to be technically or professionally competent in some
discipline, particularly when leading a group of specialists. Knowledge of the business is

critically important for strategy formulation. An analysis of CEO leadership concluded that
one of the basic ways in which top executives lead is through the expertise approach—the
belief that the leader’s most important responsibility is providing an area of expertise that
will be a source of competitive advantage.

B. Creativity

Many effective leaders are creative in the sense that they arrive at imaginative
and original solutions to complex problems. Creative ability lies on a continuum, with one
end being represented by business leaders who think of innovative products and services.
At the other end of the continuum are leaders who rely on standard solutions to problems.

C. Insight into People and Situations

Another important cognitive trait of effective leaders is insight, a depth of
understanding that requires considerable intuition and common sense. A manager with
keen insight is able to make good choices in selecting people for key assignments. Insight
also facilitates the leader’s adapting his or her style to the situation.

D. Farsightedness and Conceptual Thinking

To develop visions and incorporate strategy, a leader needs farsightedness,
the ability to understand the long-range implications of actions and policies. Many of today’s
business leaders are accused of having a shortsighted emphasis on quick profits.
Conceptual thinking refers to the ability to see the overall perspective and makes
farsightedness possible. A conceptual thinker is also a systems thinker.

E. Openness to Experience

A positive orientation toward learning is another cognitive characteristic that is
important for leaders.

IV. THE INFLUENCE OF HEREDITY AND ENVIRONMENT ON LEADERSHIP

The traits, motives, and characteristics required for leadership effectiveness are a combination
of heredity and environment. Personality traits and mental ability are based on certain inherited
predispositions and aptitudes, which, however, require the right opportunity to develop. For
example, a person may inherit high mental ability but needs the right experiences to learn to
develop innovative solutions to problems facing the group.
The outermost areas of the brain govern analytical thinking and technical skills,
whereas the innermost areas of the brain govern emotions. A person therefore has the genes
that influence the emotional intelligence necessary for leadership. However, experience is
important for emotional intelligence because it increases with age. The case histories of six sets
of brothers who all achieved the rank of president or higher at different companies highlight the
complexity of sorting out the influences of heredity versus the environment on leadership.

V. THE STRENGTHS AND LIMITATIONS OF THE TRAIT APPROACH

The evidence is convincing that leaders possess different personal characteristics from those
of nonleaders. A knowledge of the traits associated with leadership effectiveness helps in the
selection of leaders. Awareness of these characteristics can also point a person toward the right
developmental experiences, such as learning to become more assertive. The current emphasis
on emotional intelligence, which is really a group of traits and behaviors, reinforces the
importance of the trait approach. The trait approach is limited because it does not specify which

traits are absolutely needed in which leadership situations and how much of each trait is
needed. For example, when does ambition cross the line and become greed and gluttony?
Certain traits increase the probability of a person’s becoming an effective leader, but
the situation often influences which traits will be the most important. Drucker believes that a
leader cannot be categorized by a particular personality type, style, or set of traits. Instead, a
leader should be understood in terms of his or her constituents, results, example setting, and
responsibilities.

VI. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT

Considering that emotional intelligence is so important for leadership success, many
organizations sponsor emotional intelligence training for managers. A realistic starting point in
improving emotional intelligence by yourself is to work with one of its five components at a time,
such as empathy. You would first obtain feedback about your empathy, and then work diligently
on any deficiency. After the attempted improvements in empathy, solicit more feedback.

Leadership Self-Assessment Quiz 2-1: Behaviors and Attitudes
of a Trustworthy Leader
Behavioral specifics of being trustworthy are particularly important because of the renewed emphasis
on trustworthiness for leaders in recent years.

Leadership Self-Assessment Quiz 2–2: The Assertiveness Scale
Although we do not have normative data, the assertiveness scale has been used with thousands of
students. The consensus is that the scale yields a sensible score. People who are concerned about
their level of assertiveness may be prompted to take action after taking this self-assessment quiz. The
Guidelines for Action and Skill Development section on pages 57–58 provides practical suggestions
for becoming more assertive.

Leadership Skill-Building Exercise 2-1: A Sense of Humor on the Job
Asking students to develop situational humor serves two important purposes. Students quickly learn
that making appropriate humorous comments requires skill, and the exercise raises their awareness of
the importance of humor in leadership.

Leadership Skill-Building Exercise 2-2: Developing an Internal Locus of Control
An important potential contribution of this exercise is that it helps students examine concrete ways in
which they might become self-directing, or develop an internal locus of control. Clichés about taking
control of one’s life are widely mentioned, but here is an opportunity to actualize the concept.

Leadership Skill-Building Exercise 2-3: Group Feedback on Leadership Traits
A cursory look at this exercise suggests that it is a form of sensitivity training. This exercise, however,
requires all positive feedback, thus decreasing the chances of emotional damage. We believe there is

little risk of a participant’s being judged as having no leadership traits or characteristics. (This would
constitute very negative feedback.)

1. How much faith do voters place in the trait theory of leadership when they elect public officials?

Most voters place high implicit faith in the trait theory of leadership because many of their
judgments about candidates are based on perceived traits. Television appearances by
candidates serve as a major source of information about the candidates’ traits. An example is
that many people regarded presidential aspirant Al Gore as too emotionally flat. Gore then
attempted to improve his emotional responsiveness and was able to express emotion more
forcibly. However, some critics believed that Gore still needed more work to appear less stiff.

2. Suppose a college student graduates with a major for which he or she lacks enthusiasm. What
might this person do about becoming a passionate leader?

The bold approach would be for this person to make an early career switch into a field he or she
cared about, such as a management major shifting to social work. A less bold approach would be
to search for an activity in his or her field that is intrinsically exciting. For example, some people
are passionate about preparing PowerPoint slides even though they are neutral or negative
toward other aspects of the job. The person could then focus on these slides as a source of
passion in his or her work.

3. What would a manager to whom you report have to do to convince you that he or she has high
self-confidence?

The answer to this question is a function of what self-confidence means to the individual. Typical
indicators of self-confidence in a manager would be speaking with conviction, withstanding
criticism, and handling pressure well.
4. What would a manager have to do to convince you that he or she has humility?

For many workers, a sure-fire indicator of a manager having humility would be for the manager to
admit mistakes, ask for help, and sometimes say, “I don’t know.”

5. Describe any leader or manager, whom you know personally or have watched on television, who
is unenthusiastic. What effect did the lack of enthusiasm have on group members?

The presumed effect of low enthusiasm by the leader or manager would be low enthusiasm by
group members. However, enthusiastic group members who are highly self-reliant, or have a
strong internal locus of control, would not be dampened by the unenthusiastic manager. One
student said that the university’s president was so unenthusiastic that she thought he was not
interested in students. As a consequence, she felt less positively about the university.

6. Why is emotional intelligence considered more important than technical skill at high-level
leadership positions?

Emotional intelligence is more important than technical skill for high-level leadership positions
because high-level leaders spend more time dealing with people than technical issues. An
activity such as selling constituents on a vision deals more heavily with the emotions of people
than with technical considerations.

7. A CEO made the following comment about leadership and intelligence: “Sometimes a less than
top IQ is an advantage because that person doesn’t see all the problems. He or she sees the big
problem and gets on and gets it solved. But the extremely bright person can see so many
problems that he or she never gets around to solving any of them.” What is your reaction to his
comment?

What the company president implies about intelligence and problem solving is partially true.
Some people with extremely high intelligence suffer from analysis paralysis. Nevertheless, with
proper coaching and self-discipline, a very intelligent person can learn to become more decisive.

8. A disproportionate number of people who received an M.B.A. at Harvard Business School are top
executives in Fortune 500 business firms. How does this fact fit into the evidence about the roles
of heredity and environment in creating leaders?

The fact that so many Harvard Business School graduates become top business executives
presents a cogent argument for both sides of the heredity versus environment debate. The
majority of Harvard M.B.A.s come from families with intelligent, energetic members, thereby
emphasizing the importance of heredity. At the same time many Harvard M.B.A.s come from
culturally enriched environments, have great contacts from the past, and develop new ones at
Harvard—underlining the importance of environment. Another interpretation is that heredity and
environment combine to help along the Harvard M.B.A.s.

9. Visualize the least effective leader you know. Identify the traits, motives, and personal
characteristics in which that person might be deficient.

Students will rise high to this occasion because so many people feel they have had leaders who
are ineffective. Typically the perceived negative traits will fall within the realm of interpersonal
relations, such as being suspicious or verbally abusive, or having an uneven temper.
10. Many people who disagree with the trait approach to leadership nevertheless still conduct
interviews when hiring a person for a leadership position. Why is conducting such interviews
inconsistent with their attitude toward the trait approach?

Conducting interviews is consistent with an anti-trait approach because a major purpose of the
interview is to assess personal characteristics that would be related to job effectiveness. Another
purpose of the interview is to assess interpersonal skills, which are closely related to traits. If the
interview were simply used to discuss the terms of employment and to assess experience, then
the interview would not be inconsistent with a trait approach.

Leadership Case Problem A: What Leadership Characteristics
Does Reuben Mark Possess?
Reuben Mark is a good case study because he is a quiet success (see BusinessWeek, September 23,
2002, pp. 83–84).

1. Which leadership traits, characteristics, and motives does Mark (and his executive team) appear
to possess? Support your answer with specific statements in the case history.

a. “Relentless focus on developing new products and getting them into markets around the
world at high speed.” This suggests good knowledge of the business.

b. “Mark has been unwilling to bask in the glory so many other CEOs savor.” This is a
strong indicator of humility.

c. “. . . Mark and Colgate president Bill Shanahan have run a tight ship, with few defec-
tions. . . . ” Low turnover could suggest that Colgate managers are trustworthy, and that Mark
and Shanahan are trusted.

d. “The senior management . . . are deeply involved in the details.” The statement strongly
indicates the cognitive trait of knowledge of the business.

e. “Says Dolan, ‘Reuben Mark is very smart, very demanding, and very, very, funny.’ ” This
shows cognitive intelligence and sense of humor.

f. “Mark avoids media interviews because he does not like to draw too much attention to
himself.” This remark shows humility again.

2. Which traits, motives, and characteristics do you perceive to be Mark’s strongest?

Mark is so successfully involved with product development that knowledge of the business is a
key strength. His humility also assists his leadership stature in an important way.

3. What suggestions can you offer Reuben Mark to improve as a leader or to improve the
company?

If Mark were less low key in terms of gathering publicity he might attract more investors to the
company, thereby driving up the stock price. However, Colgate is already doing well with
investors, so our suggestion is speculative.

Leadership Case Problem B: The Urban Improvement Guys
This case illustrates entrepreneurial leadership in a low-technology field.

1. Explain whether or not Glazer and Samloff qualify as leaders.

Glazer and Samloff qualify as leaders because they are entrepreneurial leaders and have
brought about constructive change in their city.

2. In what ways do the traits and characteristics of Glazer and Samloff complement each other?

Glazer focuses more on new prospects for the company, suggesting that he is best at direction
setting and visioning. Samloff focuses more on the day-by-day intricacies of managing
properties, suggesting that his leadership is directed within the company, and that he is a strong
manager.

3. What evidence do you find that Glazer and Samloff are farsighted?

Both see the possibilities in neglected properties and can visualize a better future. Samloff’s
comment that “urban improvement spreads too” is certainly farsighted.

4. What cognitive skills are reflected in the leadership of Buckingham Properties?

Both Glazer and Samloff are actively involved in the details of the business such as sizing up
properties and later inspecting them. This type of activity reflects knowledge of the business.

Farsightedness, a cognitive skill, is demonstrated in Samloff’s statement, “We take something
and say, this is pretty raw, but is there a gem in this ore we can extract?”

CHAPTER 3
Charismatic and Transformational Leadership

The purpose of this chapter is to help the reader understand the nature of charismatic and
transformational leadership. Although the two forms of leadership overlap, they are treated separately
in this edition of the text. The legitimacy of either of these forms of leadership as a separate entity has
been challenged. Nevertheless, studying charismatic and transformational leadership represents an
important current thrust in understanding the leader’s role.

Charismatic leaders are so exciting, so appealing, so magnetic, and so visionary that their constituents
eagerly accept their leadership.

I. THE MEANINGS OF CHARISMA

Charisma is a special quality of leaders whose purposes, powers, and extraordinary
determination differentiate them from others. The various definitions of charisma presented in
Table 3–1 have a unifying theme. Charisma is a positive and compelling quality in a person that
creates a desire in many others to be led by him or her.
The attributes of charisma are important because they lead to behavioral outcomes
such as commitment to the leader, self-sacrifice, and high performance. A study with law
enforcement workers and business students showed that network members influence our
attributions of charisma.

A. Charisma: A Relationship Between the Leader and Group Members

According to John Gardner, charisma applies to leader-constituent
relationships in which the leader has an exceptional gift for inspiration and nonrational
communication. Charismatic leaders work deliberately at cultivating the relationship with
group members through impression management. These leaders recognize that the
perceptions of constituents determine whether they function as charismatics. Charismatic
leaders are skillful actors in presenting a charismatic face to the world.

B. The Effects of Charisma

House developed a theory of charismatic leadership that defines charisma in
terms of its effects. A charismatic person brings about these effects to a high degree.
Halpern
has factor analyzed these nine effects into three dimensions: referent power,
expert power, and job involvement. Referent power is the ability to influence others and
stems from the leader’s desirable traits and characteristics. Expert power is the ability to
influence others because of one’s specialized knowledge, skills, or abilities. Job
involvement is the feeling of being heavily committed to the job.

II. TYPES OF CHARISMATIC LEADERS

Charismatic leaders have been categorized into five types: (1) socialized charismatic—uses
power to benefit others; (2) personalized charismatic—uses power to serve own interests; (3)
office-holder charismatic—much of the charisma stems from the glitter of the office the leader
holds; (4) personal charismatic—power stems from the faith people have in the leader; (5)
divine charismatic—leader is endowed with a gift of divine grace.

III. CHARACTERISTICS OF CHARISMATIC LEADERS

Charismatic leaders have unique characteristics, and many of these characteristics also apply
to a transformational leader—one who brings about positive, major changes in an
organization. In contrast, a transactional leader is a manager who mostly carries on
transactions with people, such as taking care of administrative work and offering rewards for
good performance.
In addition to the characteristics described in Chapter 2, charismatic leaders have
other attributes: (1) they are visionary; (2) they have masterful communication skills; (3) they
have the ability to inspire trust; (4) they are able to make group members feel capable; (5) they
have energy and an action orientation; (6) they have emotional expressiveness and warmth; (7)
they romanticize risk; (8) they use unconventional strategies; (9) they have a self-promoting
personality; (10) they challenge, prod, and poke; and (11) they are dramatic and unique. The
last tactic is an amalgam of many others.

IV. THE VISION COMPONENT OF CHARISMATIC LEADERSHIP

Vision is the ability to imagine different and better conditions and the ways to achieve them.
Effective leaders have clear visions, and vision is an important part of strategy implementation
and bringing about change. Charismatic leaders inspire others with their vision, because a
vision uplifts and attracts others. The charismatic leader also helps implement the vision.
To create a vision, it is helpful to obtain information from many sources, including (1)
personal intuition, (2) the work of futurists, (3) group discussions with group members, (4) other
vision statements, (5) the hopes and dreams of constituents, and (6) the larger organization’s
vision. Visions can be inspiring but they need to be supported by managers who are strong at
implementation.

V. THE COMMUNICATION STYLE OF CHARISMATIC LEADERS

Charismatic and transformational leaders communicate their visions, goals, and directives in a
colorful, imaginative, and expressive manner. They also communicate openly and encourage
feedback.

A. Management by Inspiration

An important factor in inspiring others is the ability to craft and articulate a
highly emotional message. Two such rhetorical techniques follow:
1. Using Metaphors and Analogies. A well-chosen analogy or metaphor
appeals to the intellect, imagination, and values.
2. Gearing Language to Different Audiences. Metaphors and analogies
are inspiring, but to be effective, leaders must also choose the level of language to suit
the audience. Conger has observed that an executive’s ability to speak colloquially
contributes heavily to creating appeal.

B. Management by Anecdote

Management by anecdote is the technique of inspiring and instructing group
members by telling fascinating stories. The technique is a major contributor to building a
strong company culture.

VI. THE DEVELOPMENT OF CHARISMA

By developing some of the traits, characteristics, and behaviors of charismatic people, a
person can increase his or her charisma. Suggestions for developing charisma include the
following: (1) Create visions for others and connect the visions to their dreams; (2) be
enthusiastic, optimistic, and energetic; (3) be sensibly persistent; (4) remember the names of
people; (5) make an impressive appearance; (6) be candid; and (7) display an in-your-face
attitude.

VII. TRANSFORMATIONAL LEADERSHIP

The focus of transformational leadership is on what the leader accomplishes rather than on the
leader’s personal characteristics and relationships with group members. The transformational
leader helps bring about major, positive changes. In contrast, the transactional leader focuses
on more routine transactions, with an emphasis on rewarding group members for meeting
standards.

A. How Transformations Take Place

To accomplish his or her lofty purposes, the transformational leader attempts
to overhaul the organizational culture or subculture. Seven ways in which the leader brings
about such transformations are: (1) raising people’s awareness; (2) helping people look
beyond self-interest; (3) helping people search for self-fulfillment; (4) helping people
understand the need for change; (5) investing managers with a sense of urgency; (6)
committing to greatness; (7) adopting a long-range perspective and at the same time
observing organizational issues from a broad rather than a narrow perspective; and (8)
building trust.

B. Attributes of Transformational Leaders

Seven qualities are particularly helpful in bringing about transformations: (1)
charisma including agreeableness and extroversion; (2) vision creation; (3) encouraging the
personal development of staff members; (4) supportive leadership; (5) empowerment; (6)
innovative thinking; and (7) leading by example. One study showed that maximum
performance of transformational leaders was associated with openness to experience and
extroversion.

C. The Impact of Transformational and Charismatic Leadership on Performance

57 Several empirical studies have been conducted on the effects of charismatic
and transformational leadership in work settings.

1. Business Unit Performance. Howard and Avolio conducted a study
with financial managers about transformational leadership and business unit
performance. Leaders who displayed more individualized consideration, intellectual
stimulation, and charisma contributed positively to business unit performance. Leaders
who used management by exception and positive reinforcement were less likely to
increase unit performance.

2. Charismatic Leader Behavior in Military Units. Charismatic leadership
behavior was studied with fifty field companies in the Israel Defense Forces. The data
indicated that the performance appraisal by a leader’s superior was strongly related to
two of the charismatic behaviors studied: ideological emphasis and exemplary behavior.

VIII. CONCERNS ABOUT CHARISMATIC LEADERSHIP

The topic of charisma and transformational leadership has been challenged from two major
standpoints: the validity of the concept and the misdeeds of charismatic leaders.

A. Challenges to the Validity of Charismatic Leadership

Most leadership researchers doubt that charisma can be accurately defined
and measured. Also, charismatic leaders are not liked by everyone. According to the
concept of leadership polarity, leaders are often either revered or vastly unpopular.
People rarely feel neutral about them. Also, charisma may not be required for leadership
effectiveness. Bennis and Nanus hypothesize that people who are outstanding leaders are
perceived as charismatic by their constituents as a result of their success.

B. The Dark Side of Charismatic Leadership

Some people are concerned that charisma can be exercised for evil purposes.
Some charismatic leaders are unethical and lead their organizations toward illegal and
immoral ends. People are willing to follow the charismatic leader down a quasi-legal path
because of his or her referent power. Some charismatic leaders thus neglect their social
responsibility, the idea that organizations have an obligation to groups in society other than
owners or stockholders and beyond that prescribed by law or union contract.

IX. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT

To create charismatic appeal, make everyone you meet feel that he or she is quite important,
use a firm handshake and good eye contact, and give sincere compliments. Thank people
frequently, smile frequently, and maintain a childlike fascination with your world.

Leadership Self-Assessment Quiz 3-1: The Emotional Expressiveness Scale
Given that emotional expressiveness is such an important part of being perceived as charismatic, it is
worthwhile for students of leadership to reflect on their expressiveness.

Leadership Skill-Building Exercise 3-1: Formulating a Vision
Our experience is that students take readily to vision formulation. As one student said after completing
this exercise, “I do visions.” The visions that students construct in thirty minutes sound remarkably like
those it takes some organizations six months to formulate. If the completed visions are presented to
the rest of the class, feedback can be invited.

Leadership Skill-Building Exercise 3-2: Charismatic Leadership by Anecdote
This exercise requires both analytical and imaginative thinking. An example that fits here is the
Domino Pizza emphasis on customer service. Supposedly, pizza dough was flown by airplane to a
Domino store to cover a shortage and maintain good service. The description of “moments of truth” in
The Leadership Challenge by Kouzes and Posner provides several relevant anecdotes.

Manager Assessment Quiz 3-2: The MLQ Charismatic Leadership Scale
A productive perspective here is that the behaviors indicated by the items are as important as
calculating a score. The MLQ scale appears to be the most widely used instrument in research on
charisma.

1. Identify a business, government, education, or sports leader whom you perceive to be
charismatic. Explain the basis for your judgment.

The particular leader singled out as charismatic is not as important as how the choice is justified,
such as pointing to the leader’s colorful communication style. Bill Gates and Steve Jobs often
come to students’ minds when they are asked to identify a charismatic business leader.

2. Identify a well-known leader who is not charismatic. Explain what other qualities might have
helped this leader succeed.

Because the perception of charisma is often a function of emotional expressiveness and
nonverbal communication, students will frequently designate a bland-appearing leader as
noncharismatic. Former vice president Al Gore was often labeled as noncharismatic by the press
and comedians. After intensive coaching he began to appear more charismatic to some people,
mainly because of increased emotional expressiveness. Gore, nevertheless, still makes an
impressive physical appearance, and his well-developed intellect and exceptional connections
have helped him succeed. President George W. Bush receives mixed reactions in terms of
charisma, with his speaking skills detracting from his charismatic image.
3. Steven Jobs of Apple Computer, Inc., and many fashion designers wear the same outfit most of
the time, even for press interviews and trade shows or fashion shows. The outfit consists of a

long-sleeve or short-sleeve T-shirt and blue jeans without a belt. How does this costume affect
their projection of charisma?

The T-shirt and jeans outfits enhance charisma because the outfits are “cool.” Of course, the
reason these outfits are “cool” is that many of the other people present are wearing expensive
business attire or high-fashion costumes.

4. Describe how a person might write email messages to give an impression of being charismatic.

To appear more charismatic, the person might follow the suggestions for persuasive
communication presented in Chapter 12. Any constructive way of appearing dramatic and
unique, such as colorful phrases, will help an email message appear to have been sent by a
charismatic person. Emoticons, such as a “smiley,” are so widely used they might not contribute
to a charismatic image. Choosing an interesting font and background color or picture will
sometimes enhance charisma, but the written message is more important.

5. Aside from contributing to leadership effectiveness, for what other types of jobs might charisma
be an asset?

Charisma is a major asset in selling, and sales representatives are the most likely to enroll in
seminars and read books about becoming more charismatic. Charisma would also be an asset in
any position that involves considerable negotiation, such as a labor-relations specialist.

6. Explain why the presence of a charismatic leader tends to enhance the job satisfaction of group
members.

A charismatic leader often enhances group members’ job satisfaction because people enjoy
associating with a person they perceive as having an outstanding personality. Furthermore, many
charismatic leaders are perceived as winners, and most people like to associate with winners.

7. What opportunities might a first-level supervisor or team leader have to be a transformational
leader?

A first-level supervisor or team leader will sometimes have the opportunity to improve greatly the
performance of an underperforming and/or demoralized organizational unit. A supervisor or team
leader is often assigned to such a unit as a developmental experience.

8. In what way is a transactional leader functioning more as a manager than a leader?

A transactional leader is involved primarily with interactions between people that are
characterized as management rather than leadership. Among them are administering rewards
and punishments, giving performance evaluations, and discussing work assignments.

9. A concern has been expressed that leaders who are charismatic are often incompetent. They
simply get placed into key positions because they create such a good impression. What do you
think of this argument?

Many instances probably do exist of “counterfeit executives.” They are smooth and polished but
not very analytical. Our impression is that more of these “all form, no substance” managers are
weeded out in today’s thinned-out organizations.

10. Design a research study or survey to determine if you are perceived as being charismatic. Be
prepared to share your observations with other group members.

The survey might list all the characteristics of a charismatic leader. It then might ask respondents
who knew the person well to rate the person on a 1-to-5 scale. Write-in comments to this
anonymous survey about the person’s charismatic appeal might also be solicited.

Leadership Case Problem A: Pat Russo Wants to Rescue Lucent
This case provides some insights into the work of a leader attempting to bring about transformations.

1. In what ways might Russo be classified as a transformational leader?

First, Russo was recruited back to Lucent to complete a turnaround. The company had shrunk
considerably in size and revenues. Second, she had previously turned around the AT&T
Business Communications Division.

2. Based on the evidence presented, how would you rate Russo’s charisma?

A few threads of evidence suggest that Russo is moderately charismatic. Her physical
appearance is positive, her speech is careful, and she inspires considerable loyalty.

3. What suggestions might you offer Patricia Russo to help accelerate the turnaround at Lucent?

Russo is focusing on selling more of the existing product line. She may need to do something
more dramatic, such as selling a new product or service. Possibly the famous research lab at
Lucent might offer its services to other companies, providing they are not competitive with
Lucent.

4. How ethical was Russo in leaving Lucent, taking a top job at Eastman Kodak Company, and then
returning to Lucent in nine months?

Russo’s leaving was obviously an embarrassment to Kodak, since they never would have hired
her for a nine-month stint. Many students see no ethical problems in leaving an employer after a
brief stay, yet few people would want their own company to experience the same problem.
Jumping ship so quickly probably would not fare well when seen through an ethical screen.

Leadership Case Problem B: Charismatically Challenged Chad
The theme of this case is one faced by thousands of ambitious people: they want to get ahead but not
enough people think they have the charisma to merit being promoted. Former GE executive Robert
Nardelli (now chief exec at Home Depot Inc.) was floored when he was turned down for the top job,
even though he had achieved his financial targets. Perhaps Jack Welch thought he was not
charismatic enough.

1. What career advice can you offer Chad McAllister?

Accept the feedback from his two managers, and begin a program of becoming more noticeable
and charismatic.

2. What might Chad do to develop more charisma?

He should take some of the steps in the section about developing charisma. A good starting point
would be to express his opinions and feelings more frequently.

3. What is your opinion of the fairness of the ValuTracker program?

As long as the people placed in the ValuTracker group are not chosen arbitrarily or through
favoritism, the program is fair. Many large organizations identify potential leaders early in their
careers because the long-range success of the organization depends on having a strong cadre of
leaders.

CHAPTER 4

Leadership Behaviors, Attitudes, and Styles

The purpose of this chapter is to provide the reader with an understanding of basic leadership
behavior and attitudes, as well as styles. Some of the information goes back to classic studies
conducted in the 1950s and 1960s, and some is recent. Two other topics are featured: servant
leadership, and how leaders use 360-degree feedback to fine-tune their behaviors.

This chapter covers pioneering information about leadership behaviors and attitudes that served as the
basis for studies of leadership styles and contingency theories of leadership. A sampling of these
styles is presented as well as current information about behaviors, attitudes, and styles. An effective
leader is one who facilitates group members’ attaining productivity, quality, and satisfaction.

I. THE CLASSIC DIMENSIONS OF INITIATING STRUCTURE AND CONSIDERATION

The Ohio State studies developed questionnaires about leaders that included self-
assessments and assessments by subordinates. This research became the foundation for most
of the future research about leadership behavior, attitudes, and styles. Two dimensions (as
identified by factor analysis) accounted for 85 percent of the variance in descriptions of
leadership behavior. Initiating structure is the degree to which the leader organizes and
defines relationships in the group by activities such as assigning specific tasks, specifying
procedures to be followed, scheduling work, and clarifying expectations. Consideration is the
degree to which the leader creates an environment of emotional support, warmth, friendliness,
and trust. Leaders who score high on the consideration factor typically are friendly, trustful, earn
respect, and have a warm relationship with team members.
An important output of the research on initiating structure and consideration was to
categorize leaders with respect to how much emphasis they place on the two dimensions. As
implied by Figure 4–1, the two dimensions are not mutually exclusive.

II. TASK-RELATED ATTITUDES AND BEHAVIOR

Task-related means that the behavior, attitude, or skill focuses more on the task to be
performed than on the interpersonal aspects of leadership.

1. Adaptability to the situation. Effective leaders adapt to the situation by
choosing a tactic based on the unique circumstances at hand (the contingency approach).

2. Direction setting. The leader must set the direction of change. According to
Kotter, leaders gather voluminous data and search for patterns, relationships, and linkages
that help create events. Direction setting creates vision and strategies. A new buzzword to
signify direction setting is the northbound train.

3. High performance standards. Effective leaders consistently hold group
members to high standards of performance. Setting such standards increases productivity,
partly because of the Pygmalion effect.

4. Risk taking and bias for action. To bring about constructive change, the leader
must take risks and be willing to implement these risky decisions.

5. Hands-on guidance and feedback. The leader who provides hands-on
guidance helps the group accomplish important tasks, and at the same time group
members learn important skills. Too much guidance, however, can lead to poor delegation
and micromanagement. The leader can rarely influence the actions of group members
without appropriate performance feedback.

6. Stability of performance. Effective leaders are steady performers, even under
heavy workloads and uncertain conditions. Remaining steady helps team members cope
with the situation.

7. Ability to ask tough questions. Many times leaders can be effective by asking
tough questions rather than providing answers. A tough question is one that makes a
person or group stop and think about why they are doing or not doing something.

III. RELATIONSHIP-ORIENTED ATTITUDES AND BEHAVIORS

Leadership involves influencing people, so it follows that many effective leadership attitudes,
behaviors, and practices deal with interpersonal relationships.

A. Aligning and Mobilizing People. Many people have to be aligned (a state of
pulling together) to create significant change toward a higher purpose. Alignment enables
people to have a clear sense of direction because they are pursuing a vision. Aligning
people takes place at almost a spiritual level, whereas mobilizing people is closer to getting
the group working together smoothly. One mobilizing practice is to demonstrate care for
team members.

B. Concert Building. A new conception of the leader’s role, concert building,
involves both aligning and mobilizing. The goal of the concert builder is to produce a system
that is self-evaluating, self-correcting, self-renewing, and ongoing.

C. Creating Inspiration and Visibility. Inspiring others is an essential leadership
practice. An example of an inspiring practice is building enthusiasm about projects and
assignments. Being visible and available facilitates inspiration.

D. Satisfying Higher-Level Needs. Motivation and inspiration energize people by
satisfying needs for achievement, a sense of belonging, recognition, self-esteem, and a
feeling of control over one’s life.
E. Giving Emotional Support and Encouragement. Supportive behavior toward
team members usually increases leadership effectiveness.

F. Promoting Principles and Values. A major part of a top leader’s role is to help
promote values and principles that contribute to the welfare of individuals and the
organization. Covey advises that an organization’s mission statement must be for all good
causes.

G. Being a Servant Leader. Wanting to serve others as a leader is a relationship
behavior that encompasses several other key behaviors. A servant leader serves
constituents by working on their behalf to help them achieve their goals, not the leader’s
own goals. A servant leader is a moral leader. Key aspects of servant leadership include
the following:

1. Place service before self-interest.
2. Listen first to express confidence in others.
3. Inspire trust by being trustworthy.
4. Focus on what is feasible to accomplish.
5. Lend a hand.
6. Provide tools.

IV. 360-DEGREE FEEDBACK FOR FINE-TUNING A LEADERSHIP APPROACH

Many leaders solicit systematic feedback to improve their leadership behavior and attitudes.
360-degree feedback is a formal evaluation of superiors based on input from people who work
for and with them, sometimes including customers and suppliers. 360-degree feedback is more
frequently used for leadership and management development than for performance evaluation.
Such feedback can help detect barriers to success, such as a leader’s being perceived as using
an inappropriate leadership style. 360-degree feedback is a key component of the leadership
training program called Benchmarks.
Approaches to implementing 360-degree feedback for performance evaluation and
development continue to emerge. One variation of the method is to build a 360-degree survey
accessed via the Internet and the company’s intranet.
A review of over 600 studies of 360-degree feedback found that only one-third
reported performance improvement, and one-third reported performance decreases. To make
better use of 360-degree surveys focus on business goals and strategy, deal with important
aspects of leadership, train for giving and receiving feedback, and create action plans.

V. LEADERSHIP STYLES

A leader’s combination of attitudes and behaviors leads to a certain regularity and
predictability in dealing with group members. Leadership style is the relatively consistent
pattern of behavior that characterizes a leader. Most classifications of leadership style are
based on the dimensions of initiating structure and consideration.

A. Participative Leadership Style

Sharing decision making with group members, and working with them side-by-
side, has become the generally accepted leadership approach. Participative leaders share
decision making with group members. The style encompasses three subtypes: (1)
consultative leaders confer with group members before making a decision, but retain the
final authority; (2) consensus leaders strive for consensus; and (3) democratic leaders
confer final authority on the group. The participative style has also been referred to as
trickle-up leadership because the leader accepts suggestions for managing the operation
group members.
The participative style is well suited to managing competent people
who want to get involved in making decisions and giving feedback to management.
However, the style often results in extensive and time-consuming team meetings and
committee work.

B. Leadership Grid® Styles

The Leadership Grid is a framework for simultaneously specifying concern
for production and concern for the people dimensions of leadership. Grid styles are based
on the extent of a person’s concern for production and people: Authority-Compliance (9,1);
Country Club Management (1,9); Impoverished Management (1,1); Middle-of-the-Road
Management (5,5); and Team Management (9,9).
The ideal position is the 9,9 orientation, which integrates concern for
production and concern for people. This team management style usually results in improved
performance, low absenteeism and turnover, and high employee satisfaction. The manager
should use principles of human behavior to size up the situation.

C. Entrepreneurial Leadership

Many entrepreneurs and intrapreneurs use a similar leadership style that
stems from their key personality characteristics and circumstances. A general picture
emerges of a task-oriented and charismatic leader. Even if it is not a true leadership style,
at least there are some traits and behaviors characteristic of entrepreneurs and
intrapreneurs:

1. Strong achievement drive and sensible risk taking.
2. High degree of enthusiasm and creativity.
3. Tendency to act quickly when opportunity arises.
4. Constant hurry combined with impatience.
5. Visionary perspective.
6. Dislike of hierarchy and bureaucracy.
7. Preference for dealing with external customers.
8. Eye on the future.

D. Gender Differences in Leadership Style

Several researchers and observers argue that women have certain acquired
traits and behaviors that suit them for relations-oriented leadership. Consequently, women
leaders frequently exhibit a cooperative, empowering style that includes the nurturing of
team members. The other facet of this stereotype is that men are inclined toward a
command-and-control, militaristic leadership style.

1. The Argument for Male-Female Differences in Leadership Style

Based on self-reports, Rosener found that men tended toward a
command-and-control style. In contrast, women tended toward a transformational style,
relying heavily on interpersonal skills. Bass found that women are less likely to practice
management-by-exception and are slightly more likely to be described as charismatic.
Another perspective on gender differences in leadership is
whether men or women are more effective leaders. In combined studies of 425
executives, each by approximately twenty-five people, women leaders achieved higher
ratings on forty-two of the fifty-two skills measured. Most of the gender differences were
small. One interpretation of these findings is that the women had to be outstanding
performers to hold the executive positions, so it was a biased sample. This study could
make for emotional, yet thoughtful, class discussion.

2. The Argument Against Gender Differences in Leadership Style

Based on a literature review, Grant concluded that there are
apparently few, if any, personality differences between men and women managers. As
women move up the corporate ladder, they identify more with the male model of
managerial success. An important point is that both men and women differ among
themselves in leadership style. As the research studies put it, “The within-group
variance is greater than the across-group variance.”
Also of importance, many women believe that women
managers can be more hostile and vindictive than male managers.
More important than searching for differences is to capitalize
on both male and female leadership tendencies. Connie Glaser sees a new
management style that blends the male and female sides.

E. Selecting the Best Leadership Style

A recent study with 3,000 executives revealed that leaders who get the best
results do not rely on one style. Instead, they use several different styles in one week, such
as being autocratic in some situations and democratic in others. The cultural setting must
also be considered, such as using a strong task orientation with German workers. Stogdill
made a statement about selecting a leadership style that still holds today: “The most
effective leaders appear to exhibit a degree of versatility and flexibility that enable them to
adapt their behavior to the changing and contradictory demands made on them.”
Table 4–3 summarizes some useful ideas about the conditional
variables for choosing between the participative and autocratic styles.

VI. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT

In choosing between a task orientation and a relationship orientation, several additional factors
are also relevant. Among them are (a) the structure of the organization and the nature of the
leader’s work, (b) the leader’s personality, (c) the boss’s style, and (d) the potential for conflict.
A nondirective style is safer.

Leadership Self-Assessment Quiz 4-1: How Effective Are You as a Leader?
This exercise focuses on leadership behaviors and attitudes that represent two ends of a continuum.
On one end of the continuum is the manager who values the status quo and stability. At the other end
is an adventuresome manager who is more of a leader. Such a manager takes risks and has an action
orientation. We think this scale makes a contribution because it measures an important aspect of
leadership other than the task and people dimensions.

Leadership Skill-Building Exercise 4-1: Feedback Skills
An important feature of this exercise is that it provides an opportunity to practice giving feedback about
performance rather than feedback about personal characteristics. A possible positive byproduct of this
exercise is that the feedback results might encourage participants to perform better.

Leadership Self-Assessment Quiz 4-2: Task-Oriented Attitudes and Behaviors
An interesting twist to this scale is that it does not assume that a low task orientation is equivalent to a
high relationship orientation. The scale treats task orientation as an independent dimension of
leadership behavior.

Leadership Skill-Building Exercise 4-2: Clarifying Your Work Values
The importance of this instrument centers around its focus on values. Many observers of leadership
heavily emphasize the contribution of values to leadership effectiveness.

Leadership Self-Assessment Quiz 4-3: What Style of Leader
Are You or Would You Be?
This leadership style quiz focuses on behaviors particularly relevant in the modern workplace. The
quiz can also be used as a skill-development exercise if the statements are interpreted as implied
suggestions for engaging in a participative style.

Leadership Self-Assessment Quiz 4-4: What Is Your Propensity
for Taking Risks?
Reflecting on risk-taking tendencies is an important activity for leaders and prospective leaders. Most
organizations today value a sensible degree of risk taking. A fruitful class discussion is why some of
these items might reflect risk taking, such as Question 10 about flying a single-engine airplane.

Leadership Skill-Building Exercise 4-3: Entrepreneurial Leadership
The key feature of this exercise is that it gets the role players involved in a high-impact business
activity—selling others on the merits of their business. Our informal research has shown that at least
one-third of business students aspire to entrepreneurship or self-employment at some point in their
careers, thus increasing the relevance of this exercise.
A suggestion for this exercise is to caution the role players (or “skill builders”) to project
passion and enthusiasm into the exercise.

Leadership Self-Assessment Quiz 4-5: How Flexible Are You?
Self-reflection about flexibility is helpful because a leader needs flexibility to adapt to situations and to
change. An important goal of this exercise is to highlight the importance of flexibility.

Leadership Skill-Building Exercise 4-4: Contrasting Leadership Styles
Field testing indicates that this role-play is effective in illustrating basic leadership styles. Many
students who understand these styles intellectually have difficulty translating them into behavior acts.
Feedback by class members not participating in the role-play is quite beneficial.

1. How is initiating structure related to planning, organizing, and controlling?

Initiating structure is an important component of organizing, planning, and controlling. Much of
planning, organizing, and controlling involves activities included under initiating structure.

2. Give an example of high consideration behavior that a supervisor of yours showed on your
behalf. What was your reaction to his or her behavior?

Examples of high consideration behavior include giving a worker time off to deal with a personal
problem, or giving the worker encouragement. Most people react very positively to high
consideration behavior on the part of the supervisor.

3. Why is direction setting still an important leadership behavior in an era of empowerment?

Empowered teams still need direction regarding what activities they should be pursuing. They
might then be empowered to figure out how to achieve these goals. Few teams or individual
employees are empowered to pursue whatever direction they think is appropriate.

4. Ask an experienced leader how he or she gives emotional support to team members. Be
prepared to discuss your findings in class.

Emotional support will often take the form of encouraging workers when they have problems and
listening to their problems. Other specific forms of emotional support will be worth noting.

5. In what way might a personalized charismatic leader have quite different motives from a servant
leader?

The personalized charismatic is seeking power and glory to enhance his or her career. In
contrast, the primary motive of the servant leader is to help other people by helping them achieve
worthwhile goals.

6. How might a manager use email to help carry out both task-oriented and relationship-oriented
behaviors?

Task-oriented behaviors can be executed via email by sending messages containing directions,
work schedules, and goals. Relationship-oriented behaviors can be executed through email by
such means as sending notes of encouragement and giving compliments. The leader can give
recognition by praising the worker and include a long distribution list.

7. How would you characterize the leadership style of your favorite executive, athletic coach, or
television character who plays a boss?

To answer this question effectively, the student must choose a style categorization presented in
this chapter. The student should also provide meaningful documentation, such as “When Coach
Summitt sees that one of the players is feeling bad about a major mistake, Summitt puts her arm
around the player. That shows she’s relationship-oriented.”

8. Why is the consensus leadership style widely recommended for providing leadership to
Generation X and Generation Y workers?

Generation X and Generation Y workers have a preference for being consulted extensively about
key decisions. Part of the explanation is that many Gen X and Gen Y members have studied
team leadership in school, and they have also worked as teams for many school projects.

9. Find a printed or Internet article on a business entrepreneur (or think of one from your personal
experience). How well does that person fits the entrepreneurial leadership style?

In-depth portraits of entrepreneurial leaders will usually include descriptive information on several
characteristics of the entrepreneurial leadership style. Entrepreneurs are often described as
individualistic (if not eccentric) and impatient. People who have worked for entrepreneurs report
frequently that the entrepreneur worked unusually long hours and often expected the same of his
or her employees.

10. What are the practical implications of knowing that men and women typically have different
leadership styles?

One practical implication of knowing that men and women typically have different leadership
styles is that it might be possible to assign men and women to situations where their leadership
style is the most effective. For example, if a command-and-control-style leader were needed, a
man might be assigned. Another implication is that the gender of one’s boss would give a person
clues about the style of leadership that boss would most likely practice. A person working for a
woman, for example, might adapt to her style by participating frequently in decision making and
giving her the opportunity to be supportive and caring.

Leadership Case Problem A: The Confusing 360-Degree Feedback
The theme of this case is that the findings of a 360-degree survey can be difficult to interpret and
should take into account the needs and perspectives of the people giving the feedback.

1. What changes in leadership attitudes and behaviors do you think Haskins should make?

Haskins may need to give more structure, set a direction more clearly, and work harder at being
a helpful coach.

2. How might you explain the differences of opinion that Haskins found in the written feedback and
in the ratings shown in Exhibit 1?

Feedback on any multirater form is to some extent a function of the needs of the people giving
the feedback. For example, a self-confident individual might appreciate Haskins’ candid
feedback, whereas a less confident person might think he is heavy handed. Another explanation
for the discrepancy is that Haskins may be generally inspiring but still does not give workers a
clear understanding of where they should direct their efforts.

3. In what leadership behavior described in this chapter might Haskins particularly need
improvement?

A good hypothesis here is that Haskins needs to become more adaptable to the situation—
particularly being more flexible in responding to the leadership needs of group members. He may
need to lead people differently, such as giving some people more structure than others.

Leadership Case Problem B: Getting Northstar in the Winning Mode
This case illustrates the impact that various leadership styles might have on productivity and morale.

1. Which person best demonstrated effective leadership? Explain the reason for your answer.

Kim appears to be the most effective leader, particularly in terms of her interaction with group
members. She motivates and energizes her employees to achieve their goals and creates
change that can help the company. For example, in the meeting she shared with the group the
importance of winning the bid. Kim also described Northstar’s long-term strategic goal of
diversifying its client base.

2. Which person least demonstrated effective leadership? Explain the reason for your answer.

David is an ineffective leader, with a stiff, impersonal approach to leadership. He does not
energize or inspire people to reach organizational goals. In contrast, he focuses on achieving
orderly results. The talk he had with Robert showed his inattentiveness and lack of interest in
Robert’s ideas and concerns.

3. Where on the Leadership Grid would you place Kim, David, Robert, and Sarah? Explain the
basis for your answer.

Kim appears to be a 9,9 team manager. She places a strong emphasis on both the employee
and the task that needs to be completed. David appears to be a 9,1 authority compliance
manager. He shows little concern for the people working in his department and demands
compliance to his requests. Robert appears to be a 5,5 middle-of-the-road manager. He chooses
to concentrate on accomplishing the job and recognizes that he has approximately average skill
in working with people. To compensate, he asks Sarah for help in dealing with people. Sarah
appears to be a 1,9 country club leader, with her strong emphasis on working with people. It was
Sarah’s idea to send employees to the concert to learn about the client. If we knew more about
Sarah’s work approach, she might receive a higher rating than 1 for production concern.

CHAPTER 5

Contingency and Situational Leadership

After studying this chapter, the reader should have an accurate understanding of contingency theories
of leadership. Although the array of contingency and situational theories may baffle the reader at first,
a closer look shows that all but the executive suite theories are related. For example, the familiar tasks
versus relationships dimensions run through several of the theories.

Contingency theories specify the factors that determine which style of leadership will achieve the best
results in a given situation. The four best-known contingency theories are described in this chapter,
along with a concept of contingency leadership for CEOs.

I. SITUATIONAL INFLUENCES ON EFFECTIVE LEADERSHIP BEHAVIOR

The essence of the contingency approach to leadership is that leaders are most effective
when they make their behavior contingent upon situational forces, including group member
characteristics. Both the internal and external environments have a significant impact on leader
effectiveness.
A study compared the psychological profiles of thirty-five CEOs from large and small
companies. The skills of small-company CEOs appeared to be centered primarily on
production-oriented areas. The large-company CEOs had a significantly better developed
subset of interpersonal skills. One interpretation of these findings is that the heavy pressures
and understaffing faced by small-company CEOs compel them to emphasize task-related
attitudes and behaviors.

II. FIEDLER’S CONTINGENCY THEORY OF LEADERSHIP EFFECTIVENESS

Fiedler’s theory states that the best style of leadership is determined by the situation in which
the leader works.

A. Measuring Leadership Style: The Least Preferred Coworker (LPC) Scale

A manager’s leadership style is classified as relationship-motivated or task-
motivated. One’s style is considered relatively fixed. The least preferred coworker (LPC)
scale measures the degree to which a leader describes favorably or unfavorably his or
her least preferred coworker. One who describes the least preferred coworker
in favorable terms is relationship-motivated. In contrast, a person who describes his or her
least preferred coworker unfavorably tends to be task-motivated.

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