1. Leadership
Chapter
15

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2
Leadership
 There is probably no topic more
important to business success
today than leadership
leadership occurs among people
involves the use of influence
is used to attain goals
Manager’s Challenge: Aramark Corp.
Different leaders behave in different ways – style, need, situation

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3
Leadership
 Leadership definition
 Differences in leadership and management
 Theories of leadership effectiveness
 Charismatic and transformational leadership
 How leaders use power and influence to get
things done
 New leadership approaches for today’s
turbulent environment
Different leaders behave in different ways – style, need, situation
Topics
Chapter 15

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Nature of Leadership
 The ability to influence people toward the attainment
of organizational goals.
 Leadership is reciprocal, occurring among people.
 Leadership is a “people” activity, distinct from
administrative paper shuffling or problem-solving
activities.
 Leadership is dynamic and involves the use of
power.
travel the globe solving
problems

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Leadership versus Management
Management
Promotes
stability, order
and problem
solving within
existing
organizational
structure and
systems
Leadership
Promotes
vision,
creativity, and
change
M L
Takes care of where you are Takes you to a new place

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Leader versus Manager Qualities
Manager Qualities
Leader Qualities
Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12
SOUL
Visionary
Passionate
Creative
Flexible
Inspiring
Innovative
Courageous
Imaginative
Experimental
Initiates change
Personal power
MIND
Rational
Consulting
Persistent
Problem solving
Tough-minded
Analytical
Structured
Deliberate
Authoritative
Stabilizing
Position power

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Leadership Traits
 Traits - early efforts to understand
leadership success focused on leader’s
personal characteristics
 Great man approach - early research
focused on leaders who had achieved a level
of greatness
– Find out what made them great
– Find people with same traits
Traits = personal characteristics

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Personal Characteristics of Leaders
Physical Characteristics
Energy
Physical stamina
Social Background
Education
Mobility
Intelligence and Ability
Judgment,
decisiveness
Knowledge
Intelligence, cognitive
ability
Personality
Self-confidence
Honesty & integrity
Enthusiasm
Desire to lead
Independence
Work-related Characteristics
Achievement drive
Drive to excel
Conscientiousness in pursuit of goals
Persistence against obstacles, tenacity
Social Characteristics
Sociability, interpersonal skills
Cooperativeness
Ability to enlist cooperation
Tact, diplomacy
Source: Adapted from Bernard M. Bass, Stogdill’s Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75-76. This adaptation appeared in R. Albanese and D. D. Van Fleet,
Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).

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Behavioral Approaches
Ohio State Studies
Consideration: - people-oriented behavior
– Is mindful of subordinates
– Establishes mutual trust
– Provides open communication
– Develops teamwork
Initiating Structure: task-oriented behavior
– Directs subordinate work activities toward goal attainment
– Typically gives instructions, spends time planning, and
emphasizes deadlines
– Provides explicit schedules of work activities

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Behavioral Approaches
Michigan Studies
 University of Michigan compared the
behavior of effective and ineffective
supervisors
 Employee-centered leaders
 Job-centered leaders
At about the same time as Ohio State Studies

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The Leadership Grid
 Two-dimensional leadership theory that
measures the leader’s concern for people
and for production
 Builds on the work of Ohio State and
Michigan studies
Blake and Mouton
Experiential Exercise: T-P Leadership Questionnaire

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Leadership Grid
High
High
Low
Low
Concern for Production
Concern
for
People
Source: The Leadership Grid Figure from Robert R. Blake and Anne Adams McCanse, Leadership Dilemmas-Grid Solutions (Houston: Gulf, 1991), 29.
Copyright 1991, by Scientific Methods, Inc. Reproduced by permission of the owners.
1,9
Country Club Management
Thoughtful attention to the
needs of people for satisfying
relationships leads to a com-
fortable, friendly organization
atmosphere and work tempo.
Impoverished
Management
Exertion of minimum effort
to get required work done
is appropriate to sustain
organization membership.
1,1
9,9
Team Management
Work accomplishment is from
committed people; interdependence
through a “common stake” in
organization purpose leads to
relationships of trust and respect.
5,5
Middle-of-the-Road Management
Adequate organization performance is
possible through balancing the necessity
to get out work with maintaining morale of
people at a satisfactory level.
Authority-Compliance
Efficiency in operations results
from arranging conditions of
work in such a way that
human elements interfere to a
minimum degree.
9,1
The Leadership Grid
5,5

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Contingency Approaches
 Fiedler’s Contingency
Theory
 Hersey and Blanchard
Situational Theory
 Evans and House Path
Goal Theory
Relationship between leadership style and situation

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Fiedler’s Classification of
Situation Favorableness
Source: Fred E. Fiedler, “The Effects of Leadership Training and Experience: A Contingency Model Interpretation,” Administrative Science Quarterly 17 (1972), 455. Reprinted by permission
of Administrative Science Quarterly.
Leaders needs to know
Whether they have a relationship- or task-oriented style
Should diagnose the situation and determine the favorableness
of the following three areas

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Hersey-Blanchard’s Situational
Leadership Theory
Links leader’s behavioral style with subordinates’ task readiness
Low Readiness Level
Very High Readiness Level
High Readiness Level
Moderate Readiness Level
Low Readiness Level
Follower Characteristics Appropriate Leader Style
Telling
Selling
Participating
Delegating

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Path Goal Theory
Source: Based on Bernard M. Bass, “Leadership:
Good, Better, Best,” Organizational Dynamics 13
(Winter 1985), 26-40.

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Path-Goal Theory
Leader Behaviors
 Supportive leadership:
- Leader behavior that shows concern for subordinates
- Open, friendly, and approachable
- Creates a team climate
- Treats subordinates as equals
 Directive leadership:
- Tells subordinates exactly what they are supposed to
do
- Planning, making schedules, setting performance
goals, and behavior standards
Classification of (4) leader behaviors

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Path-Goal Theory
Leaders Behaviors
 Participative leadership:
… Consults with his or her subordinates about decisions
 Achievement-oriented leadership:
… Sets clear and challenging goals for subordinates
… Behavior stresses high-quality performance
Classification of (4) leader behaviors

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Path-Goal
Situational Contingencies
 Personal characteristics of group
members
 The work environment
 Degree of task structure
 Nature of formal authority system
 Work group itself

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Path-Goal Situations &
Preferred Leader Behavior
Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.

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Substitutes for Leadership
 Substitute = situational variable that makes
a leadership style unnecessary or redundant
 Neutralizer = situational variable that
counteracts a leadership style and prevents
the leader from displaying certain behaviors

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Leading Change
Transactional Leaders
 Clarify the role and task requirements of
subordinates
 Initiate structure
 Provide appropriate rewards
 Display consideration for subordinates
 Meet the social needs of subordinates

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Leading Change
Charismatic Leaders
 The ability to inspire
 Motivate people to do more than they would
normally do
 Tend to be less predictable than transactional
leaders
 Create an atmosphere of change
 May be obsessed by visionary ideas

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Leading Change
 Transformational Leader
 Similar to charismatic leaders
 Distinguished by their special ability to bring about
innovation and change by
 Recognizing followers’ needs and concerns
 Helping them look at old problems in new ways
 Encouraging them to question the status quo

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Sources of Power
 Legitimate Power: power coming from a formal
management position.
 Reward Power: stems from the authority to bestow
rewards on other people.
 Coercive Power: the authority to punish or
recommend punishment.
 Expert Power: leader’s special knowledge or skill
regarding the tasks performed by followers.
 Referent Power: personality characteristics that
command subordinates’ identification, respect, and
admiration so they wish to emulate the leader

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Post-Heroic Leadership
for Turbulent Times
 The turbulence and uncertainty of the
environment in which most organizations are
operating is a significant influence on
leadership styles
 Post-heroic leader’s major characteristic is
humility
Ethical Dilemma: Does Wage Reform Start at the Top?

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Leadership in Turbulent Times
 The concept and practice of leadership
continues to grow and change
 Post-heroic approach
 Servant leadership
 Level 5 leadership
 Interactive leadership
 E-leadership
 Moral leadership