978-1305502215 Chapter 11 Part 1

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CHAPTER 11

LEADERSHIP

CHAPTER OUTLINE

New Manager Self-Test: Task versus People Orientation

I. The Nature of Leadership

II. Contemporary Leadership

A. Level 5 Leadership

B. Servant Leadership

C. Authentic Leadership

D. Gender Differences

III. From Management to Leadership

IV. Leadership Traits

V. Behavioral Approaches

A. Task versus People

B. The Leadership Grid

VI. Contingency Approaches

A. The Situational Model of Leadership

B. Fiedler’s Contingency Theory

C. Situational Substitutes for Leadership

VII. Charismatic and Transformational Leadership

A. Charismatic Leadership

B. Transformational versus Transactional Leadership

VIII. Followership

New Manager Self-Test: What Is Your Follower Style?

IX. Power and Influence

A. Hard Position Power

B. Personal Soft Power

C. Other Sources of Power

D. Interpersonal Influence Tactics

ANNOTATED LEARNING OUTCOMES

After studying this chapter, students should be able to:

1. Define leadership and explain its importance for organizations.

There is probably no topic more important to business success today than leadership. Leadership

the use of power. Power is the potential ability to influence the behavior of others. Power

represents the resources with which a leader effects changes in employee behavior.

2. Describe the leadership trends emerging in today’s organizations, including Level 5

leadership, servant leadership, and authentic leadership.

The turbulence and uncertainty of the environment in which most organizations are operating has

3. Discuss how women’s style of leading is typically different from men’s.

Some of the characteristics associated with Level 5 leaders and authentic leaders are also

hallmarks of interactive leadership, which has been found to be associated with female leaders.

4. Identify personal characteristics associated with effective leaders.

Traits are the distinguishing personal characteristics of a leader such as intelligence, values, self-

confidence, and appearance. In addition to personality traits, physical, social, and work-related

5. Define task-oriented behavior and people-oriented behavior and explain how these

categories are used to evaluate and adapt leadership style.

Task-oriented behavior and people-oriented behavior are two basic categories of behavior

identified as important for leadership. People-oriented behavior is the extent to which the leader

6. Describe the situational model of leadership and its application to subordinate participation.

The situational model of leadership, which originated with Hersey and Blanchard, focuses a

great deal of attention on the characteristics of employees in determining appropriate leadership

7. Discuss how leadership fits the organizational situation and how organizational

characteristics can substitute for leadership behaviors.

The organizational situation or variables can be so powerful that they actually substitute for, or

8. Describe transformational leadership and when it should be used.

Managers deal with organizational complexity; leaders initiate productive change.

9. Explain how followership is related to effective leadership.

Many of the qualities that define a good leader are the same qualities as those possessed by a

10. Identify sources of leader power and the tactics that leaders use to influence others.

Power is the potential ability to influence the behavior of others. Power represents the resources

with which a leader effects changes in employee behavior. Within organizations there are

Leadership •

• Be assertive—ask for what you want.

• Make use of higher authority.

LECTURE OUTLINE

NEW MANAGER SELF-TEST: TASK VERSUS PEOPLE ORIENTATION

The majority of a new manager’s work is accomplished through interpersonal relationships.

Many new managers aspire to a high sociability and high dominance pattern of interpersonal

relationships. Students can diagnose their approach to dealing with others when they are in a

leadership role. A People Orientation score reveals a student’s orientation toward people and

relationships, A Task Orientation score reveals a student’s orientation toward tasks and

outcomes.

I. THE NATURE OF LEADERSHIP

There is probably no topic more important to business success than leadership because it occurs

among people, involves influence, and is used to attain goals. Influence means that the

relationship among people is not passive. Influence is designed to achieve some end or goal.

Leadership is defined as the ability to influence people toward the attainment of goals.

Leadership is reciprocal, occurring among people. It is dynamic and involves the use of power

to get things done.

II. CONTEMPORARY LEADERSHIP

The turbulence and uncertainty of the environment in which most corporations are operating in

today’s world have had a significant influence on leadership thinking and styles. Ethical and

economic difficulties, corporate governance concerns, globalization, changes in technology, new

ways of working, shifting employee expectations, and significant social transitions have

contributed to a shift in how we think about and practice leadership.

A. Level 5 Leadership Exhibit 11.1

1. A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled

with a fierce resolve to do what is best for the organization. In contrast to the view of

great leaders as larger-than-life personalities with strong egos and big ambitions,

Level 5 leaders often seem shy and unpretentious. Humility means being

unpretentious and modest rather than arrogant and prideful. Although they accept full

responsibility for mistakes, poor results, or failures, Level 5 leaders give credit for

successes to other people.

B. Servant Leadership

1. Servant leaders operate on two levels: for the fulfillment of the subordinates’ goals

and needs and for the realization of the larger purpose or mission of their

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organization. Servant leaders give things away—power, ideas, information,

recognition, and credit for accomplishment. Servant leaders bring the follower’s

higher motives to the work and connect them to the organizational mission and goals.

Servant leaders often work in the nonprofit world because it offers a natural way to

apply their leadership drive and skills to serve others.

C. Authentic Leadership Exhibit 11.2

1. Authentic leadership refers to individuals who know and understand themselves,

who espouse and act consistently with higher-order ethical values, and who empower

and inspire others with their openness and authenticity.

a. Authentic leaders pursue their purpose with passion. When leaders demonstrate a

high level of passion and commitment to purpose, they inspire commitment from

followers.

b. Authentic leaders practice solid values. People come to know what the leader

stands for, which inspires trust.

c. Authentic leaders lead with their hearts as well as with their heads. They

maintain compassion for others as well as the courage to make difficult decisions.

d. Authentic leaders establish connected relationships. They surround themselves

with good people and work to help others grow and develop.

e. Authentic leaders demonstrate self-discipline. They avoid excessive or unethical

risks that could harm others and the organization, and openly admit their

mistakes.

D. Gender Differences Exhibit 11.3

1. Some of the characteristics associated with Level 5 leaders and authentic leaders are

also hallmarks of interactive leadership, which has been found to be associated with

female leaders. Interactive leadership means that the leader favors a consensual and

collaborative process, and influence derives from relationships rather than position

power and formal authority.

2. According to surveys, women rate higher than men on motivating others, fostering

communication, driving results, producing high-quality work, and listening to others,

while men and women rate about equally on strategic planning and analyzing issues.

III. FROM MANAGEMENT TO LEADERSHIP Exhibit 11.4

Management and leadership are both important to organizations. Effective managers must also

be leaders because of distinctive qualities associated with each that provide different strengths

for the organization. Management and leadership reflect two different sets of qualities and skills

that frequently overlap within a single individual. A person may have more of one set of

Leadership •

qualities than the other, but ideally a manager develops a balance of both manager and leader

qualities.

A primary distinction between management and leadership is that management promotes

stability, order, and problem solving within the existing organizational structures and systems.

Leadership promotes vision, creativity, and change. It means questioning the status quo so that

outdated, unproductive, or socially irresponsible norms can be replaced.

Leadership cannot replace management. Good management helps the organization meet current

commitments, while good leadership moves the organization into the future.

IV. LEADERSHIP TRAITS Exhibit 11.5

Early efforts to understand leadership focused on the leader’s personal characteristics or traits.

Traits are the distinguishing personal characteristics of a leader, such as intelligence, honesty,

self-confidence, and appearance.

Generally, research found only a weak relationship between personal traits and leader success.

Physical, social, and work-related characteristics of leaders have also been studied. The

appropriateness of a trait or set of traits depends on the leadership situation. The same traits do

not apply to every organization or situation.

Rather than just understanding their traits, the best leaders recognize and hone their strengths.

Strengths are natural talents and abilities that have been supported and reinforced with learned

knowledge and skills and provide each individual with his or her best tools for accomplishment

and satisfaction.

Discussion Question #1: Suggest some personal traits that you believe would be useful to a

business leader today. Are these traits more valuable in some situations than in others? How do

you think traits differ from strengths?

NOTES________________________________________________________________________

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V. BEHAVIORAL APPROACHES

A. Task versus People

1. The inability to define effective leadership based solely on traits led to an interest in

looking at the behavior of leaders and how it might contribute to leader success. Two

basic leadership behaviors that have been identified as important for leadership are

task-oriented behavior and people-oriented behavior.

a. Studies of leader behavior at The Ohio State University identified two major

leadership behaviors called consideration and initiating structure.

Leadership •

• Consideration is the extent to which the leader is sensitive to subordinates,

respects their ideas and feelings, and establishes mutual trust. Considerate

leaders are friendly, provide open communication, develop teamwork, and are

oriented toward their subordinates’ welfare.

• Initiating structure is the extent to which a leader is task oriented and directs

subordinate activities toward goal attainment. Leaders with this style

typically give instructions, spend time planning, emphasize deadlines, and

provide schedules of work activities.

b. Studies at the University of Michigan compared the behavior of effective and

ineffective supervisors.

• Employee-centered leaders were the effective leaders who established high

performance goals and displayed supportive behavior toward subordinates.

• Job-centered leaders were ineffective and less concerned with goal

achievement and human needs in favor of meeting schedules, keeping costs

low, and achieving efficiency.

B. The Leadership Grid Exhibit 11.6

1. Researchers at the University of Texas developed the Leadership Grid®, a

two-dimensional model that measures concern for people and for production. Each

axis on the grid is a nine-point scale, with 1 meaning low concern and 9 meaning high

concern.

a. Team management (9,9) is often considered the most effective style for all

managers; organization members work together to accomplish task outcomes.

b. Country-club management (1,9) occurs when primary emphasis is given to people

rather than to work outputs.

c. Authority-compliance management (9,1) occurs when efficiency in operations is

the dominant orientation.

d. Middle-of-the-road management (5,5) reflects a moderate concern for both people

and production.

e. Impoverished management (1,1) means the absence of a management philosophy;

managers exert little effort toward interpersonal relationships or work

accomplishment.

NOTES________________________________________________________________________

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VI. CONTINGENCY APPROACHES

A. The Situational Model of Leadership Exhibit 11.7

1. The situational model of leadership, which originated with Hersey and Blanchard, is

a contingency approach to leadership. That is, it describes the relationship between

leadership styles and specific organizational situations. The situational model links

the leader’s behavioral style with the task of readiness of subordinates.

2. The focus of this model is that subordinates vary in their readiness level, which is

determined by the degree of willingness and ability a subordinate demonstrates while

performing a specific task.

a. Willingness refers to a combination of confidence, commitment, and motivation,

and a follower may be high or low on any of the three variables.

b. Ability refers to the amount of knowledge, experience, and demonstrated skill a

subordinate brings to the task.

People low in readiness need a different leadership style than those with high

readiness. People have low task readiness due to limited skills, lack of training, or

insecurity. People with high readiness tend to have ability, skills, confidence, and

willingness to work.

3. According to the situational model, a leader can adopt one of four leadership styles,

based on relationship (concern for people) and task (concern for production)

behavior. The four styles include:

a. Directing style—a highly dictating style and involves giving explicit directions

about how tasks should be accomplished.

b. Coaching style—a leader explains decisions and gives subordinates a chance to

ask questions and gain clarity and understanding about work tasks.

c. Supporting style—a leader shares ideas with subordinates, gives them a chance to

participate, and facilitates decision making.

d. Entrusting style— a leader turns over the responsibility for decisions and their

implementation to subordinates.

4. Followers may be at low, moderate, or high levels of readiness.

a. Low Readiness Level. A directing style is appropriate when followers are at a

low readiness level because of poor ability and skills, little experience, insecurity,

or unwillingness. The leader directs followers what to do, how to do it, and when

to do it.

Leadership •

b. Moderate Readiness Level. A coaching style works best with moderate levels of

readiness when subordinates are unable but willing to follow. In this case,

subordinates might lack some education and experience for the job. The coaching

style gives direction but includes seeking input from others and clarifying tasks.

c. Moderate Readiness Level. A supporting style is effective with moderate levels

of readiness when subordinates are able but lack high willingness to follow.

These subordinates are somewhat insecure about their abilities, and the leader acts

as a resource for advice and assistance to them.

d. High Readiness Level. When followers have high levels of education,

experience, and readiness to accept responsibility for their own task behavior, the

entrusting style is effective. For these followers, the leader provides a general

goal, delegates sufficient authority to do the task, and expects followers to

complete the task as they see fit.

B. Fiedler’s Contingency Theory Exhibit 11.8

The cornerstone of Fiedler’s contingency theory is the extent to which the leader’s style is

relationship oriented or task oriented. A relationship-oriented leader is concerned with

people. A task-oriented leader is primarily motivated by task accomplishment.

1. Situation: Favorable or Unfavorable?

a. The suitability of a person’s leadership style is determined by whether the

situation is favorable or unfavorable. Since leadership styles are considered to be

difficult to change, the basic idea is to match the leader’s style with the situation

most favorable for his or her effectiveness. The favorability of a leadership

situation can be analyzed in terms of three elements: the quality of relationships

between leader and followers, the degree of task structure, and the extent to which

the leader has formal authority over followers.

• Highly favorable when the leader-member relations are positives, tasks are

highly structured, and the leader has formal authority over followers.

• Highly unfavorable when leader-member relations are poor, tasks are highly

unstructured, and the leader has little formal authority.

NOTES________________________________________________________________________

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2. Matching Leader Style to the Situation

a. Combining the three characteristics yields eight leadership situations.

• The task-oriented leader excels in most favorable situations because everyone

gets along, the task is clear, and the leader has power. The task-oriented

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leader also excels in most unfavorable situations because a great deal of

structure and task direction is needed.

• The relationship-oriented leader performs better in the four situations of

intermediate favorability because human relations skills are important in

achieving high group performance.

b. A leader needs to know two things to use Fiedler’s contingency theory.

• A leader needs to know whether he or she has a relationship- or task-oriented

style.

• A leader should diagnose the situation and determine whether leader-member

relations, task structure, and position power are favorable or unfavorable.

C. Situational Substitutes for Leadership Exhibit 11.9

1. The contingency leadership approaches considered so far have focused on the

leader’s style, the subordinates’ nature, and the situation’s characteristics. The final

contingency approach suggests that situational variables can be so powerful that they

substitute for, or neutralize, the need for leadership.

a. A substitute is a situational variable that makes a leadership style redundant or

unnecessary. Highly professional subordinates do not need a leader to tell them

what to do.

b. A neutralizer is a situational variable that prevents a leader from displaying

certain behaviors. Situational variables include characteristics of the subordinate,

task, and the organization.

2. Leaders should adopt a style complementary to the organizational situation to ensure

that both task needs and people needs of the work group are met.

Discussion Question #10: Consider the leadership position of a senior partner in a law firm.

What task, subordinate, and organizational factors might serve as substitutes for leadership in

this situation?

NOTES________________________________________________________________________

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VII. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP

Research has found that some leadership approaches are more effective than others for bringing

about change in organizations. Two types of leadership that can have a substantial impact are

charismatic leadership and transformational leadership. These are best understood in comparison

to transactional leadership.