Chapter 12 – Leadership
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12
chapter
Leadership
Learning Objectives 2
Key Student Questions 3
Class Roadmap 4
Bottom Line 13
Social Enterprise 14
Lecturettes 15
CHAPTER CONTENTS
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1 Discuss what it means to be a leader.
2 Summarize what people want and organizations need from their
leaders.
3 Explain how a good vision helps you be a better leader.
LEARNING OBJECTIVES
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Students have an intrinsic interest in leadership – they come into class wanting to know:
1. “Do I have what it takes to be a leader?”
2. “Are the people I know who are in leadership positions doing
the right things?”
The problem is that when professors start talking about “leadership theories,” students start to go to sleep.
Your approach to solving this problem depends on your preferences for applied vs. laboratory research,
but whichever you prefer; brush up on your storytelling skills!
• If your preference is applied research, emphasize leader traits and behaviors in your lecture. Get
a copy of any of Kouzes’ and Posner’s books1 – they are crammed with examples and stories you
• If your preference is for laboratory research, the trick is to tell the students the story behind the
research. For example, Fiedler’s work was influenced by a seminal review of the leadership liter-
Teaching Tip
A day or two before you are scheduled to teach the leadership chapter, ask your students to re-
spond to Discussion Question 7 in writing. The question reads “Who are your heroes? What
makes them heroes, and what can you learn from them?” By reviewing this input before class,
KEY STUDENT QUESTIONS
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Management in Action
Meg Whitman’s Leadership Challenge at Hewlett-Packard
Hewlett-Packard was, and to some people still is, an icon of the computer age. Founders Wil-
liam Hewlett and David Packard started out making electronic instruments in a Palo Alto,
California, garage, starting a tradition of engineering excellence and innovation. As technol-
ogy made the computing power more affordable to consumers, HP became known for its cal-
culators, personal computers, and printers, all of them top quality and innovative for their
time.
But beginning in the 1990s, HP has struggled to live up to its reputation. The company is still
Introduction
LO 1: Discuss what it means to be a leader.
1. Leadership can be taught – it involves skills “possessed by a majority, but used by a minori-
ty.”
E.G.
Use Example 12.1 – Leadership here
LO 2: Summarize what people want and organizations need from their leaders.
A. People want help in achieving their goals.
I. What Do We Want from Our Leaders?
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5. Encourage the heart
Multiple Generations at Work
Millennials Are Redefining the Nature of Leadership
Approximately two-thirds of Millennials want to be leaders in the workplace in the next five years. Mil-
E.G.
Use Example 12.2 – Leadership actions here
LO 3: Explain how good vision helps you be a better leader.
B. A vision is a mental image of a possible and desirable future state of the organization.
C. Visions in action
Visions can be small or large and exist throughout all organizational levels, as well as at the very top:
1. A vision is necessary for effective leadership.
E.G.
Use Example 12.3 – Vision here
A. Supervisory leadership is behavior that provides guidance, support, and corrective feedback for
B. Strategic leadership is behavior that gives purpose and meaning to organizations.
C. Leading and Following
III. Leading and Managing
II. Vision
Chapter 12 – Leadership
1. Organizations succeed or fail not only because of how well they are led but also because of
LO 4: Identify sources of power in organizations.
A. Power-the ability to influence others
B. Sources of Power. (Exhibit 12.4)
1. Legitimate power is where the leader has the right, or authority to tell others what to do;
employees are obligated to comply with legitimate orders.
E.G.
Use Example 12.4 – Types of leadership power here
LO 5: List the personal traits and skills of effective leaders.
A. Leader traits – the trait approach is the oldest leadership perspective and was dominant for sev-
IV. Power and Leadership
V. Traditional Approaches to Understanding
Leadership
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1. Drive, which refers to a set of characteristics that reflect a high level of effort. It includes high
need for achievement, constant striving for improvement, ambition, energy, tenacity (persis-
tence in the face of obstacles), and initiative.
E.G.
Use Example 12.5 – Leadership traits here
LO 6: Describe the behaviors that will make you a better leader, and identify when the situa-
tion calls for them.
B. Leader Behaviors
1. Leadership behaviors – the behavioral approach attempts to identify what good leaders do.
Three general categories of leadership behavior are:
a. Task performance behaviors are the leader’s efforts to insure that the work unit or organ-
ization reaches its goals.
i. This dimension is sometimes referred to as:
(1) concern for production
b. Group maintenance behaviors is where leaders take action to ensure the satisfaction of
group members, develop and maintain harmonious work relationships, and preserve the
social stability of the group.
i. This dimension is sometimes referred to as:
(1) concern for people
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2. Participation in decision-making dimension of leadership behavior can range from autocrat-
3. The effects of leader behavior
a. Decision styles
i. Autocratic style resulted in somewhat higher performance.
ii. Democratic style resulted in the most positive attitudes.
iii. Laissez-faire style is a philosophy characterized by an absence of managerial deci-
sion-making.
b. Performance and maintenance behaviors
i. Ohio State studies found supervisors who were high on maintenance behaviors (which
C. Situational Approaches to Leadership
2. Leadership perspective proposing that universally important traits and behaviors do not exist,
and that effective leadership behavior varies from situation to situation.
b. Fiedler’s contingency model of leadership effectiveness states that effectiveness depends
on two factors: the personal style of the leader and the degree of which the situation gives
the leader power, control, and influence over the situation. (Exhibit 12.11)
ii. Different situations call for different styles, and the leader’s attitude toward his/her
least preferred coworker (LPC) affects scores.
c. Hersey And Blanchard’s Situational Theory
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i. Hersey and Blanchard’s Situational Theory highlights the maturity of the followers
as the key situational factor.
d. Path-goal theory is a theory that concerns how leaders influence subordinates’ percep-
tions of their work goals and the paths they follow toward attainment of those goals. (Ex-
hibit 12.12)
i. Key situational factors in path-goal theory are:
(1) personal characteristics of followers
e. Substitutes for leadership – factors in the workplace that can exert the same influence on
employees that leaders would provide.
Management in Action –
Progress Report
Is Meg Whitman’s leadership style right for HP? HP’s board of directors certainly thinks so; they ap-
pointed Whitman chairman of the board in 2014. Described as “blunt, folksy, and persistent,” she is a de-
cisive leader and team builder who realizes that turning around HP requires a long-term commitment to
making several adjustments and improvements, and not betting on a magical silver bullet.
• What leader traits and behaviors has Meg Whitman used in trying to turn around HP?
• Are they likely to be effective?
Whitman has exhibited determination, a clear vision for the future, and respect for her followers. She has
• How well suited to HP’s situation is Whitman’s leadership style, as described here?
Several situational approaches to leadership can guide this assessment. Using the Vroom model, Whitman
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Applying Hersey and Blanchard’s model, HP workers generally would score high on job maturity and
probably also on psychological maturity. According to this model, both performance leadership and
maintenance behaviors are less important when leaders are mature on both dimensions. This model seems
to give Whitman a free pass in terms of leadership style.
LO 7: Distinguish between charismatic and transformational leaders.
A. Charismatic leadership – a person who is dominant, exceptionally self-confident, convinced of
B. Transformational leadership – leaders who motivate people to transcend their personal interests
for the good of the group
1. Transactional leaders –view management as a series of transactions in which they use their
legitimate, reward, and coercive powers to give commands and exchange rewards for services
rendered.
2. Generating excitement by
3. Additional strategies that contribute to transformational leadership are:
a. leaders have a vision
4. Transforming leaders
a. Level 5 leadership – a combination of strong professional will (determination) and per-
C. Authenticity
1. Authentic leadership is a style in which the leader is true to himself or herself while leading
VI. Contemporary Perspectives on Leadership
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E.G.
Use Example 12.6 – Authentic leaders here
D. Opportunities for Leaders
LO 8: Describe types of opportunities to be a leader in an organization.
3. Servant leaders – serve the needs of others while strengthening the organization.
4. Intergroup leaders lead collaborative performance between different groups or organizations.
E.G.
Use Example 12.7 – Servant leaders here
E. A Note on Courage
1. Good leaders show courage by:
a. seeing things as they are and facing them head-on
LO 9: Discuss how to further your own leadership development.
A. How Do I Start?
1. Assignments
B. What Are the Keys?
1, Assessments
VII. Developing Your Leadership Skills
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Teaching Tip:
Discussion questions 8 and 9 are excellent short writing assignments, especially in large lecture sections. For added
enrichment, have the students write their responses, then discuss their responses in small groups.
Management in Action –
Onward
Four years into her tenure as chief executive of HP, some observers expressed doubts about Whitman’s
ability to lead a turnaround. Still, she brings strengths to the job—perhaps sufficient ones for even this
daunting task. In her earlier days as a junior partner at Bain Consulting, she showed fearlessness in speak-
ing to top executives. In 2015, Whitman took the bold step to split HP into two publicly traded compa-
nies, HP Enterprise (focusing on corporate customers) and HP Inc. (focused on the printer and PC busi-
nesses). Whitman will lead the former and Dion Weisler will head up the latter.
• What evidence, if any, do you see that Whitman is a charismatic leader? A transformational leader? An
authentic leader? A servant leader?
Answers may vary but should reflect an understanding of the terms. The case says little about Whitman’s
strates for employees and the skills they bring to the organization.
• Look up recent business news to learn how well HP is performing today and whether Whitman remains
CEO. Has she been a successful leader of HP? Why or why not?
Depending on students’ research skills, either direct them to find information about the company on their
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p. 408: Do you have to be a top-level executive to have a vision?
No. Although news reports and the examples in this chapter emphasize stories about top executives, man-
p. 408: What is your vision for a better future?
p. 414: What shows you that a manager cares about task performance?
The text suggests answers such as focusing on work speed, quality, and accuracy and expressing concern
p. 426: Why might improving employees’ personal development be good for a company?
BOTTOM LINE
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Richard L. Murphy Served Thousands
1. What made Richard Murphy such an effective leader? Explain.
Murphy was able to take a vision and turn it into a reality. He was able to take a selfless
approach to leadership and devote much of his time to thinking of new ideas to help the
2. In addition to being a servant leader, to what degree was Murphy a “level–‐5” leader?
Level 5 leadership is a combination of strong professional will (determination) and per-
SOCIAL ENTERPRISE
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LECTURETTE 1.1: The Motivation to Manage
THE SHORTAGE OF MANAGERIAL TALENT
1. The nation is undergoing a management crunch—a shortage of managerial talent.
2. The management crunch results from a number of factors:
➢ The low birth rate of the 1930’s.
THE SHIFT IN STUDENT VALUES
1. The attitudinal shift that is diverting college students away from managerial careers is part of a larger
cultural shift in the American society, especially with respect to individual attitudes toward the nature
of work.
2. The old “Protestant Ethic,” which promoted the values of hard work, competition, and thrift, is being
replaced by an emerging “Social Ethic,” which advocates “belongingness” and group affiliation as the
ultimate ingredients to a higher quality of work life.
3. Students at the Harvard Business School were found to have significantly stronger preferences for
6. Students at the University of Washington did not perceive business management to be a viable vehi-
cle for gratifying major career aspirations.
THE MOTIVATION TO MANAGE
1. One of the most successful instruments for correlating a specifically desired behavior with its corre-
2. The Miner methodology specifies six motivational factors that lead to a desire to manage, namely: a
favorable attitude toward:
LECTURETTES
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3. Miner’s instrument has been validated by numerous research projects involving managers from all
levels in the hierarchy of a variety of business, educational, and government organizations.
LEARNING THE MOTIVATION TO MANAGE
1. Anyone who aspires to be a successful manager must learn the motivation to manage—and it can be
learned. Motivation training has been used successfully by many organizations in programs in which
employees first learn that they can change their situation. Then they learn new values and new higher
LECTURETTE 1.2: Leading Professionals
UNDERSTANDING THE PROFESSIONAL EMPLOYEE
1. More and more, institutions of all types are being required to hire professional personnel.
2. Professionals tend to be uniquely different from other employees and, therefore, require a different
sort of leadership and/or management.
3. Professionals, as a rule, tend to be more difficult to manage or to administer to and more difficult to
motivate than the traditional employee.
4. Professionals are concerned with high-order job factors such as self-actualization, status, autonomy,
8. Professional dissatisfaction also results from such job factors as poor recognition, low visibility, man-
agement practices, and administrative trivia.
9. Being a cosmopolitan, the professional often fails to perceive a close relationship with the employing
institution, being significantly more loyal to the profession than to the employer.
10. Because of these rather limiting job factors, professional employees experience significantly high lev-
els of role conflict, role ambiguity, job tension, stress, and burn-out that leads to:
➢ Anxiety
➢ Fear
“Emerging Occupational Values; A Review and Some Findings,” Academy of Management Journal 16, 3, 1973, 423-432.
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➢ Poor productivity
THE PROFESSIONAL TURNED MANAGER OR ADMINISTRATOR
1. Given the above unique work-related problems of the professional employee performing the profes-
sional assignment for which she or he was trained to do, one might expect even more drastic prob-
lems when this same professional is moved into a managerial position for which she or he was not
trained to do.