Management Chapter 11 Homework Although They Accept Full Responsibility For Failures

Leadership •

279

CHAPTER 11

LEADERSHIP

CHAPTER OUTLINE

Are You Ready to Be a Manager?

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

VI. Contingency Approaches

A. The Situational Model of Leadership

B. Fiedler’s Contingency Theory

C. Substitutes for Leadership

VII. Charismatic and Transformational Leadership

A. Charismatic and Visionary Leadership

B. Transformational versus Transactional Leadership

VIII. Followership

IX. Power and Influence

A. Position Power

B. Personal Power

C. Other Sources of Power

D. Interpersonal Influence Tactics

ANNOTATED LEARNING OBJECTIVES

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

2. Describe how leadership is changing 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

significantly influenced leadership styles in recent years. 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 post-heroic approach that focuses on the subtle,

• Authentic leaders pursue their purpose with passion. When leaders demonstrate a high level

of passion and commitment to purpose, they inspire commitment from followers.

Leadership •

281

• Authentic leaders practice solid values. People come to know what the leader stands for,

which inspires trust.

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

4. Identify personal characteristics associated with effective leaders.

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

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.

• Chapter 11

282

Hersey and Blanchard’s approach focuses a great deal of attention on the characteristics of

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 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

typically five sources of power.

• Legitimate power comes from a formal management position in an organization and the

Leadership •

283

• Referent power comes from leader personality characteristics that command subordinates’

identification, respect, and admiration so that they wish to emulate the leader.

Leaders use seven primary tactics to influence others.

• Use rational persuasion.

• Make people like you.

LECTURE OUTLINE

INTRODUCTION

Qi Lu grew up in a rural village in China with no electricity or running water. Today, he is

president of Microsoft’s online services division. His colleagues say he shunned the limelight,

but he was considered one of the stars. Lu rose through the ranks at Yahoo and got the job at

Are You Ready to Be a Manager?

This questionnaire helps students get a better sense of their leadership abilities.

I. THE NATURE OF LEADERSHIP

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

• Chapter 11

284

______________________________________________________________________________

___________________________________________________________________________

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

Influence means that the relationship among people is not passive. Influence is designed to

Spotlight on Skills: Seven—or Six—Leadership Habits of SpongeBob SquarePants

A new leader is emerging. He lives with his pet snail, Gary, in a pineapple at the bottom of the

ocean and adores his fry-cook job at the Krusty Krab. SpongeBob seems to get into trouble a lot.

In fact, that is his gift. SpongeBob has had some harrowing experiences and has learned

important leadership skills:

Be resilient. When SpongeBob is marooned, he is forced to find his willpower and resources.

Skills

II. CONTEMPORARY LEADERSHIP

INSTRUCTOR’S

NOTES________________________________________________________________________

______________________________________________________________________________

Leadership •

285

______________________________________________________________________________

_________________________________________________________________

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

Exhibit 11.1: Level 5 Hierarchy

A. Level 5 Leadership

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.

a. In contrast to the view of great leaders as larger-than-life personalities, Level 5

2. These leaders want everyone in the organization to develop to their fullest potential.

New Manager Self-Test: What’s Your Personal Style?

Ideas about effective leadership change over time. Humility means a quiet, self-effacing manner.

A humble person puts group of organizational success ahead of one’s personal success. Will

B. Servant Leadership

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

and for the realization of the larger purpose or mission of their organization.

a. Servant leaders give things away—power, ideas, information, recognition, and

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

apply their leadership drive and skills to serve others.

Discussion Question #8: How does Level 5 leadership differ from the concept of servant

leadership? Do you believe anyone has the potential to become a Level 5 leader? Discuss.

C. Authentic Leadership

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.

Exhibit 11.2: Components of Authentic Leadership

Benchmarking: Saturday Night Live

Tina Fey moved from improv artist to writer to head writer on Saturday Night Live. In the

process, she learned a number of leadership lessons from producer Lorne Michaels:

1. To be a producer, one must discourage creativity. Sometimes it becomes necessary to

rein

people in.

Leadership •

287

D. Gender Differences

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

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

New Manager Self-Test: Interpersonal Patterns

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

Generally speaking, the high sociability and high dominance patter reflects the type of leader to

which many new managers aspire. This exercise helps students understand their relationship

patterns.

Exhibit 11.3: Gender Differences in Leadership Behaviors

III. FROM MANAGEMENT TO LEADERSHIP

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

• Chapter 11

288

______________________________________________________________________________

Exhibit 11.4: Leader and Manager Qualities

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 qualities than the

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

IV. LEADERSHIP TRAITS

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

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

Leadership •

289

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

Exhibit 11.3: Personal Characteristics of Leaders

Discussion Question #2: 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?

V. BEHAVIORAL APPROACHES

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. Task versus People

2. The Ohio State studies of leader behavior identified two major leadership behaviors

called consideration and initiating structure.

a. Consideration is the extent to which the leader is sensitive to subordinates,

respects their ideas and feelings, and establishes mutual trust.

• Chapter 11

290

Discussion Question #6: What skills and abilities does a manager need to lead effectively in a

virtual environment? Do you believe a leader with a consideration style or an initiating-

structure style would be more successful as a virtual leader? Explain your answer.

3. The University of Michigan studies compared the behavior of effective and

ineffective supervisors.

B. The Leadership Grid

Exhibit 11.6: The Leadership Grid Figure

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

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

2. 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

VI. CONTINGENCY APPROACHES

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

Several models of leadership, called contingency approaches, explain the relationship between

leadership styles and specific situations.

A. The Situational Model of Leadership

Exhibit 11.7: The Situational Model of Leadership

1. The situational model is a contingency approach to leadership that links the leader’s

behavioral style with the task readiness of subordinates. The theory states that

subordinates vary in their readiness level.

a. People low in task readiness, due to limited skills, lack of training, or insecurity,

2. A leader can adopt one of four leadership styles, based on relationship (concern for

people) and task (concern for production) behavior:

a. Telling style—a high concern for tasks and a low concern for people and

• Chapter 11

292

B. Fiedler’s Contingency Theory

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

style is relationship oriented or task oriented. Leadership style is measured with a

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

Discussion Question #1: Do you think leadership style is fixed and unchangeable for a leader

or flexible and adaptable? Discuss.

3. Matching Leader Style to the Situation

a. Combining the three characteristics yields eight leadership situations.

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

Exhibit 11.8: How Leader Style Fits the Situation

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

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

style.

5. Some researchers have challenged the idea that leaders cannot adjust their styles as

situational characteristics change.

Leadership •

293

C. Substitutes for Leadership

Exhibit 11.9: Substitutes and Neutralizers for Leadership

1. 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

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 #11: 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?

VII. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP

INSTRUCTOR’S NOTES___________________________________________________________

______________________________________________________________________________

A. Charismatic and Visionary Leadership