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Chapter 9
Leadership: What Makes an Effective Leader?
FOCUS
No institution or group can function without leadership. Yet, many people today question the
effectiveness of our leaders. Recent events in this country with government, Wall Street,
professional athletes and business moguls have highlighted unethical and inappropriate
leadership. Students must learn how to recognize appropriate leadership and how to develop their
own leadership skills. With this knowledge base, we will have a pool of qualified leaders for
significant positions. The purpose of this chapter is to give students information that will aid
them in understanding their roles as leaders and serve as a basic framework for the development
of their leadership style.
CHAPTER PREVIEW
OBJECTIVES
After studying this chapter, you should be able to:
9.1 Describe the roles of leaders, managers, and followers.
9.2 Discuss leadership theories over time.
9.3 Identify leadership styles.
9.4 List skills required of leaders at different organizational levels.
9.5 Name basic characteristics and behaviors of effective leaders.
9.6 Explain leadership needs for the future
TEACHING – LEARNING SUGGESTIONS
Supplementary Exercise 9.1
Introduce Chapter 9 with a question, “Who’s your favorite leader and why?” Call on a few
volunteers for short and quick answers to generate interest in the assignment. Each student is to
select a current, reasonably prominent, active leader, who should be recognizable to most every
one in the class. This leader should be a person they have admiration for, maybe someone with
whom they identify, perhaps someone they aspire to be, or in some way perceive to be a great
leader. This person can be a religious leader, a military person, a government leader, an athlete, a
financial mogul, a news media powerhouse, in the movie industry, an educator, etc. Student
selections should be turned in to the instructor to assure there is no duplication of choice.
Students are to observe and collect information on their “leader” throughout the course
development with the idea of preparing a written report and/or a presentation to the class on their
subject.
Observations should be made that would support discussion on the leaders’ traits,
characteristics, skills, styles, and whether they apply emotional intelligence and good human
relation skills. Do people like them or their style (why?) -- why is that style effective for them, or
not, and give examples. How did they learn their leadership skills, when and where? Encourage
students to make the paper/presentation an interesting interpretation of their leader. The
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papers/presentations should be due toward the end of the semester to allow students to fully
develop their knowledge of leadership and its application to their subject.
Answers to Jump Start
1. Student answers will vary and many may go directly to the 42 percent higher wage and
2. Encourage students to think of other ways Sinegal might appeal to his employees and
9.1 UNDERSTANDING LEADERSHIP
The quality of leadership most often determines the quality of life in society and in organizations.
Today’s concerns about the integrity of institutions emphasize the need for better leadership in
business and industry arenas. Managers can manage. but it takes a leader to influence the
activities of individuals in such a way that they willingly follow. Leadership skills are important
to individuals in both their professional and personal endeavors. To attain goals, leaders must be
effective in directing and coordinating the work of others so that they will want to work toward
those goals.
Answers to In the News
Answers to Ask Yourself
1. Students’ answers will vary. The instructor should encourage discussion on their
2. Student answers should focus on differences outlined in the chapter. Encourage students
9.2 THE EVOLUTION OF LEADERSHIP THEORIES
Many methods, or theories, have been used to study leadership. Examining leadership traits,
behaviors, and the need to change styles to fit a given situation are a few of the more popular
methods. Each of these methods is an outgrowth or further extension of those that preceded it.
Over the years, beliefs have evolved with time and research yet remain closely related in some
way to the ideas that went before it. A thorough knowledge of leadership is vitally important in
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today’s environment because we have such diverse and educated employees who want to be
treated in a very different way in the work place.
Supplementary Exercise 9.2 with T.M. 9.1
Prior to discussing the traditional styles of leadership, have participants complete in class the
Hotel Galveston exercise. To do this, the instructor should duplicate and distribute copies or
prepare a transparency from Teaching Master 9.1. This exercise serves as an excellent
introduction to autocratic, democratic, and free reign leadership. It will help students gain
understanding about the three traditional leadership styles, observe the application of these styles,
and see and feel the results of such leader behaviors.
Instructor Procedures:
1. Divide the class into three groups of roughly equal size.
2. Tell each group to quickly select a leader.
3. Give the groups the task described. While they start to plan their strategy, meet with the
leaders and assign their leadership roles. Give each leader the appropriate guidelines
(Teaching Master 9.1).
4. Give groups 10 minutes in which to plan their task and 15 minutes in which to complete it.
5. Inspect the hotels, administer the hurricane, and select the winner of the competition.
6. Announce the winner and explain to the class that the exercise was structured for them to
experience the three basic styles of leadership. Ask for observations from each group,
emphasizing key behaviors associated with each type of leadership style. Be sure to ask the
designated leaders about their feelings in their particular roles and to talk through any
uncomfortable feelings they might have had.
Supplementary Exercise 9.3
This exercise begins with an open discussion of McGregor’s Theory X and Y and should use
Figure 9.2 in the text as a visual illustration. Douglas McGregor set out one of the original
theories that suggested leaders should treat employees the way they seemed to be motivated and
called this idea his Theory X. In this Theory X, McGregor made a basic assumption that people
worked only to survive, inherently disliked work, were not ambitious, would avoid work if they
could, and preferred being directed to avoid any possible responsibility. This paints a picture of a
lazy employee. A leader of this type of employee would then be expected to threaten this
employee, be highly directive, controlling, and push this person to get any work from them. The
heavy-handed, authoritarian leadership style would be the approach best suited to this Theory X.
On the other extreme end of his idea was Theory Y, which suggested an opposite idea. In Theory
Y, he suggested that people naturally liked to work and were self-directed if there was some
reward for their effort. At the direct opposite from Theory X, he held that people were eager to
work, would seek responsibility, and would do a good job. The democratic leadership approach
is best suited to this type of employee requiring less direct supervision and a more supportive or
participative style for best results. But are employees always one way or the other?
Lead the class in an open discussion of under what conditions Theory X assumptions
might be appropriate and then Theory Y assumptions. In the discussion, be sure to point out that
McGregor never said that all people dislike work or that all people seek responsibility, etc. Some
people might, while others will behave in these ways to various degrees. He stressed that
conditions must be right for certain behaviors. Ask what students think happens when employee
behaviors moves toward the middle of these assumptions and how would a supervisor handle that
situation? The instructor may want to illustrate this theory by drawing a straight line with an X
on one end and a Y on the other and then talk about how employees will move along the
continuum of that line, demonstrating different degrees of both behaviors depending on
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situations. Demonstrate how many times employees can be working somewhere right in the
middle. Discuss how the leadership style must adjust to match the assumption if you are to apply
Maslow’s theory.
Discuss Figure 9.3, Blake and Mouton’s Managerial Grid©. Robert Blake and Jane Mouton were
some of the first theorists to use the grid system to measure and identify leadership styles. They
suggested you measure the degree to which a leader cares (shows concern) for employees and
measure the degree to which a leader cares about production (getting the job done) ranging from
1 being the least concern to 9 being the highest on this two-dimensional grid. This theory reveals
five specific leadership styles, illustrated on the grid figure in the text. The suggestion is that the
9.9, Team Management style, is the best leadership style to apply to most situations because it
encourages the maximum concern for both people and production. In some situations, the 9.1
type is the best if it is the need of a Fire Chief barking orders to put out a huge 3-house fire. As
we are discovering with these theories, no one theory works best every time. There are variations
in the leader-follower situations that will create the need for changes in styles.
Conclude this discussion with a transition into the next theory by Paul Hersey and Ken
Blanchard that explains the full dimensional use of situational leadership. Discuss the leader-
follower relationship and how they adjust to each situation. Encourage student discussion on
these theories and make certain there is a firm understanding of the situational leadership concept.
Answers to Ask Yourself
9.3 LEADERSHIP STYLES
Leadership styles are the patterns of behavior exhibited by leaders. Most leaders have a particular
style with which they are most comfortable and that they prefer using. Three various styles are
discussed in this section—the autocratic, democratic, and free rein.
Supplementary Exercise 9.4
After covering the various leadership style options in this chapter, choose a film, or let the
students choose a film, which depicts some or all of these leadership styles. For example, the old
classic film 12 O’Clock High is an excellent tool to use for students to observe the situational
leadership style shifts. This World War II film will help students visually see the application of
task/relationship behaviors. Other films you may choose to use for leadership style discussions
might include any of the following:
Saving Private Ryan
A Few Good Men
Braveheart
Remember the Titans
Courage Under Fire
Coach Carter
12 O’Clock High
Glory Road
The Endurance
Crimson Tide
Drumline
G.I. Jane
There may be other, more recent movies you could use for this exercise. Discussions about the
movie content should focus on leadership styles used and responses given or shown by the
followers. Ask about motivation levels demonstrated by the followers – were they operating at a
more Theory X or Theory Y level? Was the leadership being used the correct one for the
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situation? If the assignment is given to the student to select a film and watch it for determining
the leadership qualities, the student should prepare a short, 1- to 2-page paper describing the film,
the characters depicted, and the elements in the film related to the materials in this chapter. For
more interest, a random selection of students could present their film selections to the class.
Answers to Ask Yourself
9.4 EFFECTIVE LEADERSHIP SKILLS
A leader’s effectiveness may depend upon some level of skills required to do the job. This
chapter develops the three basic skills most beneficial to competent leaders and describes the
degree to which they may be required at different levels of leadership.
Answers to Global Connection
Encourage students to openly discuss their opinions about this company’s business and its
leaders. The leadership style would have to be “situational” based on the variety of tasks and
people and places they have dealt with in building their company in the last few years. The most
prominent skill used by these two would be the conceptual skills -- planning and coordinating the
activities and the resources of the organization with big picture plans for immediate expansion.
These skills are coupled with good human relations skills – the ability to communicate, motivate,
and set realistic goals has helped them become successful in this field.
Discuss Text Box on Developing Leadership Skills. Encourage students to discuss each of these
skills and their importance to their own success. Ask students to give examples of ways in which
some of these techniques might be of benefit and how they may have already realized some
advantage from the use of some or even one of these activities.
Answers to Technology Connection
Student answers will vary and should focus on Plank’s determination, leadership skills,
technology applications to his merchandizing strategies, and leadership style that followed him
from his early days as a college football team captain. He has a genuine interest and love of his
produc, too!
Answers to Ask Yourself
1. Student answers will vary. Encourage an open discussion by students who did not engage
2. Answers will vary here. Encourage full class discussion on this topic to determine which
9.5 CHARACTERISTICS AND BEHAVIORS OF LEADERS
Additional skills are often required in the making of a well-rounded leader. Solid functional
abilities such as planning, organizing, directing, staffing, and budgeting are a few of the
requirements. Other characteristics include being a good communicator, decision maker, risk
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taker, and motivator and having an ability to delegate effectively. Certain other attitudes and
behaviors are discussed, with examples for reference and understanding. Acknowledging and
developing these additional skills will be helpful in advancing leadership opportunities.
Discuss Figure 9.4, Leadership Characteristics. Openly discuss each of these characteristics to
highlight their importance in advancing leadership effectiveness. Students may discuss which of
these characteristics they feel they need more work on and which are okay. It would be
interesting to chart the most comfortable to least comfortable at the whole class level. Encourage
students to share their information and opinions in an open and honest way for best results.
Answers to Ethics Connection
Student answers will vary as discussions examine the ethical obligations students may feel
toward Cracker Barrel. Program privileges are offered early in their work program and continue
to push the employee toward greater management and leadership roles. Encourage students to
discuss what degree of obligation would they feel, if any, and then how would they benefit from
the program on their next job or later in life?
Supplementary Exercise 9.5 with T.M. 9.2
Using the list from Teaching Master 9.2, have students rate themselves on the Behaviors of
Effective Leaders. This list also appears as Figure 9.5 in the student text. The ratings to be used
will range from poor, fair, average to above average. This rating can be done as an in-class
exercise or as a take-home exercise but should be verified as completed. Once the student self-
evaluation is completed, discussion should be facilitated focusing on both strengths and areas for
growth. Students should commit themselves to developing areas perceived as weak. The exercise
is meant to help form a framework for leadership development. You may want to suggest that the
student ask a close friend, family member, or work associate to do the same rating for comparison
to the student’s evaluation. This offers additional insight helpful in the overall growth and
development.
Answers to Ask Yourself
9.6 LEADERSHIP TODAY
A general idea that the days of autocratic leadership are gone brings forecasts for the future of a
very different kind of leader. Transactional and transformational leadership styles developed and
the servant leader evolved as a highly effective style of leading people in the work place today.
Because of more influences and considerations affecting the choices a leader makes, times today
are more challenging than ever before. Some leaders apply emotional intelligence to their
leadership and find it an effective tool for dealing with the changing work environment. The
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leadership differences in men and women have been recognized and are now used in favorable
ways to the benefit of organizational goals and individual growth. The gender gap is narrowing.
The differences in intergenerational workforce continue to plague the work place, but even that
consideration is being addressed in most organizations and any problems caused are minimal.
Most new leadership models still deal heavily with human relations skills. As technology
advances and economies change, human relations skills will be the universal glue that makes it all
stick together. The need for being intellectually and emotionally aware, excited by new ideas,
and accepting of constant change defines the future leader. Growing individual skills and
allowing others to perform to their highest standards will continue to be the hallmark of an
effective leader.
Answers to Ask Yourself
1. Student answers will vary. Encourage an open discussion of the servant leader and what
2. Randomly select students to begin a discussion on the application of emotional
KEY TERMS DEFINITIONS
Influence the ability to change the attitude or behavior of an individual or group.
Great man theory a theory of leadership based on the belief that certain people are born to
Theory X & Y two sets of assumptions that leaders hold about follower behavior, as outlined by
Managerial Grid© leadership theory developed by Blake and Mouton that uses a grid to plot
Autocratic leadership a leadership style that is task-oriented and highly directive and involves
Democratic leadership a leadership style, also described as participative, that is usually
Free-rein leadership a leadership style that allows followers to lead themselves, provides
Technical skills the skills required to perform a particular task required to get the job done.
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Conceptual skills administrative or big picture skills; ability to think abstractly and to analyze
Human relations skills those skills that relate to the study of relationships among people and
PODSCORB an acronym for the functional abilities required of leaders: planning, organizing,
SUGGESTED RESPONSES TO REVIEW QUESTIONS
1. Leadership is the process of influencing the activities of individuals or organized groups
2. Leadership theories discussed in this chapter include the following:
a. Great man theory: Based on a belief that certain people are born to become
b. Behavioral theories: Based on the belief that success of leaders is the result of
c. Situational or contingency theories: Based on the ideas that leaders need to
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2. Three traditional leadership styles include the following:
a. Autocratic leaders, also known as authoritarian or directive leaders, are task
b. The democratic leader, also known as participative, shares authority, involves
3. The skills commonly required of leaders are technical, human relations, and conceptual.
4. The various methods of developing leadership skills are exposure and observations, trial
5. The basic elements critical to effective leadership are functional abilities, characteristics,
6. Transactional leadership encompasses the theories presented in this chapter and requires
that leaders determine what followers need to achieve their own and organizational goals,
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SUGGESTED RESPONSES TO CRITICAL THINKING
1. Student answers will vary but should demonstrate a clear understanding of situational
2. Student answers will vary and should demonstrate an understanding of transactional and
servant leadership. Encourage students to share individual experiences depicting
examples of skills and characteristics for each of the leadership approaches.
3. Student answers will vary. Point out that different leadership styles are appropriate for
different situations and that leaders do not all have to behave the same way to be
effective.
4. Student answers will vary depending on personal experiences with or beliefs about this
leadership approach. Encourage open discussion on the subject and require a clear
understanding of the servant leadership approach. Seek input on measuring outcomes
and intuitiveness -- this should produce interesting and opinionated discussions.
5. Student answers will vary and should first demonstrate a clear understanding of
emotional intelligence and its application in effective leadership. Encourage open
discussion on whether the leader or the follower makes its application popular.
ANSWERS TO CASE STUDIES
Answers to 1 (The Re-Birth of a Clinic)
Answers to 2 (How is it Today?)
Edna used a heavy-handed autocratic style with the employees but would often provide a
HUMAN RELATIONS IN ACTION
Group presentations will differ based on selected approach by the group(s) but should
demonstrate evidence of on-line work and thoughtful interaction and idea sharing in the
development of the brochure. The instructor should look for creativity, course content offered,
good use of graphics, strength of skills, knowledge requirements, grasp of task performance, and
whether the focus was placed on the overall purpose of the brochure – leadership skills
development for the 21st century. Evaluate presentations based on content, conciseness, clarity,
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and creativity. Does the class want to take the courses offered in their brochures? Are they
relevant and interesting? What skills are targeted? How convincing is this company leader? Did
they pick the right presenter? You may want to ask the group for feedback on their leadership
group process. Was there an emergent leader, who took control, did they work under free rein,
how was the experience?
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