C H A P T E R E L E V E N
The Quest for
Leadership 11
Lecture Outline
The Nature of Leadership
A Denition
How Do Leaders Inuence Others?
The Trait Approach: Are Some People
The Great Person Theory
Transformational Leaders
The Behavior Approach: What Do Leaders
Do?
Participative versus Autocratic
Leadership Behaviors
Person-Oriented Versus
Production-Oriented Leaders
Developing Successful Leader
Behavior
The Challenge of Leading Work
Teams
Contingency Theories of Leader
E-ectiveness
LPC Contingency Theory
Situational Leadership Theory
Leadership Development
360-Degree Feedback
Networking
Executive Coaching
Mentoring
Job Assignments
Action Learning
Leadership theory, current trends, practices, and
managerial implications are discussed in this chapter.
Leaders derive power from the formal positions they
hold in organizations, accepted authority, their
capacity to administer rewards and punishment, and
their access to information. Power can also be
attributed to the leader’s personal characteristics
including persuasion, expertise, and charisma. The
trait approach to leadership suggests that leaders
have characteristics that set them apart from others.
These include: higher leadership motivation, drive,
honesty, self-condent, and exibility.
Transformational leaders facilitate change and
revitalization of their organizations. These leaders are
highly charismatic; provide intellectual stimulation,
individualized consideration, and inspirational
motivation. The behavior approach to leadership
suggests that there are two dimensions across which
leaders vary. The rst is successful task performance.
Leaders high on this dimension are concerned with
initiating structure. The second is maintaining
favorable personal relations with subordinates.
Leaders high on this dimension are concerned with
consideration. LPC contingency theory argues that
both characteristics and situational factors are
important in explaining leadership. Situational
leadership argues that there are styles of leadership
appropriate to specic situations. The chapter
concludes with a discussion of the mechanisms that
can help us improve our leadership skills in our
organizations.
©2013 Pearson Education, Inc. publishing as Prentice Hall 58
ANNOTATED OUTLINE
1. THE NATURE OF LEADERSHIP
A. A denition: what leadership is and is not
1. Leader – a person who actually exercises the most inuence over a
group
2. Leadership – the process whereby one individual inuences other
group members in a non-coercive manner toward the attainment of a
dened group or organizational goals
3. Four key characteristics:
a. Leadership involves non-coercive inuence
b. Leadership inuence is goal-directed
c. Leadership requires followers
d. Leaders and managers are distinct – at least in theory
B. How do leaders inuence others? Sources of leadership power
1. Four bases of position power – power associated with an individual’s
position
a. Legitimate power ― others recognize and accept the
authority
b. Reward power ― power to control rewards others receive
c. Coercive power ― capacity to control punishment
d. Information power ― power by virtue of access to valuable
data or knowledge
2. Four sources of person power ― power derived from unique qualities
or characteristics
a. Rational persuasion ― power by virtue of the logical
arguments and factual evidence provided to support arguments
b. Expert power ― power to the extent that others recognize
expert knowledge
c. Referent power ― power because they are liked and admired
by others
d. Charisma ― power because of engaging and magnetic
personality
2. THE TRAIT APPROACH TO LEADERSHIP: HAVING THE RIGHT STUFF
A. The great person theory
1. The great person theory -great leaders possess stable traits that set
them apart from others
a. Leadership motivation – the desire to lead
1. Personalized power motivation
2. Socialized power motivation
b. Flexibility
c. Focus on morality
1. Authentic leaders
d. Multiple domains of intelligence – leaders need to be smart
in at least three ways
1. Cognitive intelligence
2. Emotional intelligence
3. Cultural intelligence
B. Transformational leaders: special people who make things happen
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1. Transformational leaders – people who do things that make
monumental changes in society or in organizations
2. Key characteristics:
a. Charisma
b. Self-condence
c. Vision
d. Environmental sensitivity
e. Intellectually stimulating
f. Interpersonally considerate
g. Inspirational
h. Morality
3. LEADERSHIP BEHAVIOR: WHAT DO LEADERS DO?
A. Participative versus autocratic leadership behaviors
1. Two approaches:
a. The autocratic-delegation continuum
1. People who want to run the whole show are autocratic.
2. People who pass along decision-making responsibility to others
rely on delegation.
3. People who fall between these two extremes use participative
leadership style.
b. The two-dimensional model of subordinate participation – describes
subordinates’ participation in decisions in terms of:
1. The autocratic-democratic dimension – the extent to which
leaders permit subordinates to take part in decisions
2. The permissive-directive dimension – the extent to which
leaders direct the activities of subordinates and tell them how
to carry out their jobs
c. No single leadership style is best under all conditions or in every
situation
B. Person-oriented versus production-oriented leaders
1. Two critical leadership behaviors:
a. Initiating structure – concern for getting the job done
b. Consideration – concern for people
c. Most successful with high consideration and initiating structure
C. Developing successful leader behaviors: grid training
1. Grid training – uses a process to cultivate concern for production and
concern for people
2. Grid seminar ― managers help organization members analyze their
own management styles
a. Concern for production
b. Concern for people
c. Training to improve and optimize both factors
4. LEADERS AND FOLLOWERS
A. The leader-member exchange (LMX) model: the importance of being in the
“in-group”
1. Leader-member exchange (LMX) model – leaders distinguish
between groups they favor (in-groups) and those they do not
(out-groups)
©2013 Pearson Education, Inc. publishing as Prentice Hall 60
B. The challenge of leading work teams
1. Servant leadership – leaders exist to serve the needs of team
members
a. Team leaders work at building trust and inspiring teamwork.
b. Team leaders concentrate on expanding team capabilities and
coaching.
c. Team leaders attempt to create a team identity.
d. Team leaders are encouraged to make the most of di-erences
between members.
e. Team leaders try to foresee and inuence change.
Winning
Practices
Challenges of Leading in a Digital World
Use Winning Practices Case to discuss leadership style in an internet-driven economy.
5. CONTINGENCY THEORIES OF LEADER EFFECTIVENESS
Contingency theories of leadership e1ectiveness – refers to approaches
to leadership.
A. LPC contingency theory: matching leaders and tasks
1. LPC contingency theory – a leader’s contribution to the successful
performance of his or her group is determined both by the leaders own
traits together with the various features of the situation
a. No “one best way”
b. Characteristics of the individuals involved
c. Nature of the situations they face
d. Esteem for least-preferred coworker (LPC) ― leader’s
tendency to evaluate in a favorable or unfavorable manner the
person with whom she or he has found it most diLcult to work
1. Negative perceptions equate to low LPC leaders –
2. Positive perceptions equate to high LPC leaders –
e. E-ective leadership determined by three factors:
1. Nature of the leader’s relations with group members
2. Applying LPC contingency theory
a. Assess and use leader match ― leaders are put into situations
B. Situational leadership theory: adapting leadership style to the situation
1. Situational leadership theory – focuses on the best leadership style
a. Maturity of followers
1. Task behavior ― need for guidance and direction
b. Four situations:
1. Telling ― specic instructions; close supervision
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3. Participating ― low level of task behavior; high levels of
4. Delegating ― low levels of task behavior and low levels
c. Leaders must:
1. Diagnose the situation they face
Self-Assessment Exercise Determining Your Leadership Style
Students should consider the following upon completion of the exercise.
1. Based on this exercise what is your most predominant leadership style? Is it
consistent with what you would have predicted?
2. According to situational leadership theory, in what kinds of situations would this style
be most appropriate? Have you ever found yourself in such a situation, and if so, how
well did you do?
3. Do you think that it would be possible for you to change this style if needed? What
challenges would you confront in attempting to do so?
6. LEADERSHIP DEVELOPMENT: BRINGING OUT THE LEADER WITHIN YOU
Leadership development – the systematic process of training people to
A. 360-degree feedback
1. Most Fortune 500 companies rely on 360 degree feedback – the
a. Assessment centers
1. Role-playing exercises
B. Networking
1. Networking – breaks down barriers between departments
a. Promotes peer relationships
C. Executive coaching
1. Executive coaching – custom-tailored, one-on-one learning aimed at
improving an individual leader’s performance
a. Integrated assessment of leader’s strengths and weaknesses
D. Mentoring
E. Job assignments
F. Action learning
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You Be the Consultant Suggested Answers
1. What behaviors should the president attempt to emulate to improve his leadership
style? How may he go about doing so?
Student answers will vary. Key points are presented in bullet form.
2. Under what conditions would you expect the president’s leadership style to be most
e”ective? Do you think that these conditions might exist in his company?
3. Would your advice be any di”erent if he were in charge of a small Internet start-up
instead of a large manufacturing company? If so, what di”erent recommendations
would you make and why?
©2013 Pearson Education, Inc. publishing as Prentice Hall 63