Chapter 12: Leadership P a g e | 13
Practice Being a Manager
CHANGING DIRECTIONS
Exercise Overview and Objective
The objective of this exercise is to give students practice in using leadership theory to analyze a situation
such as that facing PepsiCo. Also, students should work with peers to brainstorm recommendations for
improving leadership.
Preparation
No student preparation is required for this exercise. You may want to underscore the importance of
carefully reading the chapter in advance, and of paying particular attention to the segment describing the
PepsiCo situation.
You should decide in advance how you would like to assign students to small teams (3 5 students).
This exercise would work well with established project teams, and may even dovetail with some ongoing
project work.
In-Class Use
This exercise is relatively simple. Students are given their role as consultants, organized in small teams,
and then instructed to brainstorm and work out recommendations for the new CEO at PepsiCo. The
. Step 2
opens this process with these questions:
What do you think employees need most from their leader?
CEO encourage employees to move on and focus on the future? What are the tradeoffs in each
approach?
Step 3 calls for the consulting teams to make some direct connections to leadership theory, and also to
prepare for coaching the CEO. Here are the questions framing this discussion:
How might path-goal thinking help the CEO guide PepsiCo employees through the transition?
What should the CEO keep in mind regarding such situational factors as worker readiness,
situation favorableness, and environmental contingencies?
Assuming the CEO possesses charismatic capabilities, would you recommend relying upon a
charismatic leadership style in this situation?? Why, or why not?
The consulting teams are likely to require a minimum of 30 minutes to effectively respond to these six
questions. You may select a smaller set of questions, or substitute questions of your own, as suits your
objectives and time frame.
Students seem more prone to rely upon intuition and guesswork with some management topics
leadership chief among them. Encourage students throughout this exercise to rely upon leadership theory,
Chapter 12: Leadership P a g e | 14
Self-Assessment
LEADERSHIP ORIENTATION
This chapter orker scale.
In-Class Use
Give students 5 7 minutes to complete the inventory. Give students a moment to add their raw score and
then go over what the scores mean (see below under Scoring). Then, direct students to consult Exhibit
leadership styles.
Scoring
Scoring instructions follow the assessment Once students
calculate their raw scores, however, they will want to know what they mean.
them:
hip style.
According to Fiedler, this style is a relatively fixed part of your personality and is therefore difficult
key to good leadership is finding (or creating) good matches between leadership styles and situations.
Chapter 12: Leadership P a g e | 15
Management Workplace
Management Workplace videos can support several in-class uses. In most cases you can build an entire
50-minute class around them. Alternatively, they can provide a springboard into a group lesson plan. The
Management Workplace video for Chapter 12 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
VIDEO: CAMP BOW WOW
Leadership
Summary:
Although consistency and conformity are critical to the success of any chain, Camp Bow Wow
seeks creative input from the franchisees. Founder Heidi Ganahl keeps a door open for anyone
business.
Discussion Questions:
1.
Heidi Ganahl is driven by her passion for dogs, and she has a clear, well–articulated vision of
what she wants Camp Bow Wow to become in the future. These qualities are inspirational to the
thousands of animal-lovers who work in the Camp Bow Wow franchise system. In addition,
Ganahl is constantly thinking of new ways to leverage the Camp Bow Wow brand. Since
2. Blake/Mouton leadership grid? Explain.
Heidi Ganahl is driven to achieve performance results (high concern for production), yet she is
Chapter 12: Leadership P a g e | 16
Workplace Video Quiz
Students are able to take the following video quiz on CourseMate. The video is broken into segments, and
each segment has related questions to make sure students understand how the clip connects to the chapter
concepts.
Video Segment 1
Video segment title Leadership
Start time (in sec) 0:00
Stop time (in sec) 2:11
Quiz Question 1 According to contingency leadership theories, leading a successful pet
franchise business:
a. Can be accomplished by identifying the one single leadership style that
works across all situations
b. Can be accomplished through a variety of different leadership styles,
Quiz Question 2 As founder and CEO of Camp Bow Wow, Heidi Ganahl has the power to
hire and fire employees. She has a high degree of:
a. Time power
b. Award power
c. Constructive power
d. Position power
Correct option d: Position power
Feedback Position power is the degree to which leaders are able to hire, fire, reward,
and punish workers.
Quiz Question 3 As a manager, Heidi Ganahl is responsible for:
a.
Chapter 12: Leadership P a g e | 17
Video Segment 2
Video segment title Leadership
Start time (in sec) 2:12
Stop time (in sec) 4:16
Quiz Question 1
people. This indicates that Heidi Ganahl has a high degree of:
a. Consideration
b. Initiating structure
Quiz Question 2 When describing the leadership of Camp Bow Wow founder Heidi Ganahl,
franchisee Sue Ryan attributes her success to personal characteristics such
as passion, determination, humility, and confidence. This is consistent
with:
a. Situational theory
b. Behavioral theory
c. Trait theory
d. All of these
Correct option c: Trait theory
Feedback According to trait theory, effective leaders possess a similar set of traits or
characteristics.
Quiz Question 3 Based on her equal concern for people and productivity, Heidi Ganahl has
a leadership style that falls on the following coordinate of the
Blake/Mouton leadership grid:
a. 1,9 (country club management)
Chapter 12: Leadership P a g e | 18
Video Segment 3
Video segment title Leadership
Start time (in sec) 4:17
Stop time (in sec) 6:27
Quiz Question 1 Camp Bow Wow franchisee Sue Ryan says that company founder Heidi
Ganahl willingly delegates many decision-making responsibilities to the
followers who buy into the franchise. According to path-goal theory,
Ganahl practices:
a. Participative leadership
Quiz Question 2 Which of the following statements from the segment expresses a key
difference between being a leader and being a manager?
a. Camp Bow Wow founder Heidi Ganahl says she was able to negotiate
effectively with one of her franchisees.
b. Camp Bow Wow founder Heidi Ganahl says that her role has changed
from micromanagement of day-to-day operational details to strategic
rection.
c. Franchisee Sue Ryan says that she purchased her Camp Bow Wow
kennel from Heidi Ganahl.
d. None of these
Quiz Question 3 Camp Bow Wow owner Heidi Ganahl inspires followers with her many
big-picture ideas for how to care for pets and expand the Camp Bow Wow
brand. This quality is characteristic of:
a. Transactional leadership
b. Visionary leadership
c. Task-oriented leadership
Additional Assignments and Activities
Review Questions
1. What are the differences between leaders and managers?
2. Do leaders always matter? Explain your answer in terms of substitutes and neutralizers.
3. How does the Blake/Mouton leadership grid depict leaders based on the leadership behaviors of
initiating structure and consideration?
Blake and Mouton used two leadership behaviors concern for people (i.e., consideration) and
concern for production (i.e., initiating structure) to categorize five different leadership styles. Both
behaviors are rated on a nine- The
five leadership styles plotted on the grid are:
Team Management style: high concern for people/high concern for production.
4.
Fied
5. Describe the implications of situational favorableness.
Situational favorableness occurs when leaders can influence followers and is determined by leader–
member relations, task structure, and position power. In general, relationship-oriented leaders with
Chapter 12: Leadership P a g e | 20
6. What is path goal theory?
The path goal theory states that leaders can increase subordinate satisfaction and performance by
clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available
7. Identify the four leadership styles of path goal theory and explain when they are most appropriately
used.
8. Explain normative decision making theory (the Vroom-Yetton-Jago model).
9. What is the difference between transformational leadership and transactional leadership?
Transformational leadership
getting employees to see beyond their own needs and self-interest for the good of the group. Like
charismatic leaders, transformational leaders are visionary, but they transform their organizations by
Management Team Decision
SETTING EXECUTIVE SALARIES
Purpose
The purpose of this case study is to lead students in a discussion on how to compensate company leaders.
Clearly, company executives play an important role in determining the successes and failures of a
company. But does that mean they should be paid several hundred times more than other employees?
Setting It Up
You can introduce this exe
example, a recent study from Harvard University showed that the average CEO makes 400 times more
than the average pensation package,
which not only includes a seven-figure salary, but stock options and cash bonuses, along with extra
benefits like a security detail or a private jet. Ask students if they feel that CEOs deserve this kind of pay.
Scenario
You are a member of the Board of Directors of a large, multinational bank that is looking to hire a new
CEO. The previous CEO did as well as he could to guide your company through the recession, but
everyone agrees that a new leader, with a fresh vision, is needed to lead the bank back to profitability.
years ago, this would have been a cakewalk assignment; put together a multimillion-dollar deal with cash,
stock options, and
package in the middle of the worst recession in 70 years. What would your employees think? What would
But as the committee member continues her report, she points out a disturbing trend. Although the
total package that CEOs receive is down, the amount that they receive in cash is up 8.3 percent, and their
average cash bonus is up 7.9 percent, to $2.1 million, while the amount they receive in stock options is
down nearly 30 percent. What does all of this mean? It means that more companies are placing less
emphasis on long- ce,
many companies are emphasizing short-term thinking by giving CEOs lots of cash. Even if the company
Chapter 12: Leadership P a g e | 22
Questions
1. What are the advantages and disadvantages of tying
performance?
2. How would you explain to concerned shareholders and employees why it is so important that the
CEO receive a multi-million-dollar salary package?
3. How much input would you give company employees in making a decision on executive pay?
As described in Section 12-6a, there are a variety of decision styles that could be used to make this
decision. The styles vary from autocratic decisions, in which leaders (or in this case the Board of
Directors) make the decisions on their own, to group decisions, in which leaders share the problems
with subordinates and have the group make the decision together.
Develop Your Career Potential
HUMILITY IN LEADERSHIP
Purpose
For a long while, the trend in leadership was for the charismatic, larger–than-life, rock-star-style leader,
but after a few bouts with hubris, that leadership style has given way to a more humble approach. The
purpose of this assignment is to have students recognize the powerful role humility plays in effective
leadership by having them examine a moment when they needed to take ownership for something they
did wrong and apologize and make amends.
Setting It Up
We tend to be very private about our mistakes, so this exercise is probably most comfortably done as an
individual exercise in a journal format (students recording their introspective answers for your reading
alone). As an alternative, however, you may consider having students think about the questions before
Scenario
-satur
news. This is particularly true of leaders, who are less able (perhaps simply unable) to hide from the
media microscope than in times past. We want our leaders to have an unshakable integrity, so when their
mistakes turn into front-page news, it provides a unique look at the mettle of those who lead our
governments, institutions, and businesses. One of the functions of leadership is to assume responsibility
for company actions, even when those actions are dubious at best or downright shameful at worst. But
how can leaders who are supposed to always take the high road work through mistakes that they or
their organizations have made?
The answer is simple: a sincere apology. Okay, so the answer is not so simple. Everyone knows that
apologizing is not so easy, as proved by the associated lump-in-the-throat and the awful feeling that
comes from knowing that something you did caused someone else pain, embarrassment, loss, or hardship.
But as you read in the chapter, a critical element of what leaders do and how leaders succeed is
consideration, which is akin to empathy, the engine of a sincere apology.
How do you apologize for mistakes? Do you us
meaning? Or do you apologize profusely, which comes to the same effect? Do you wait until you have
time to think things over, or do you apologize immediately if briefly? The biggest mistake that leaders
Questions
2. Did you take responsibility for your actions, or did you try to blame circumstances or other people?
3. Did you apologize? How do you think the person who was receiving the apology took it?
4. What was the most difficult thing about apologizing?
5. Think about some high-profile blunders in recent news, whether in the world of sports, business, or
entertainment. How do you think the company or individual involved did at delivering a public
apology? Explain why you thought it was or was not sincere.
Additional Activities
Out-of- Student groups should select a leader in their community,
such as a religious leader, business leader, political leader, or a teacher. Anyone in a leadership role will
work. Students should conduct an extensive interview with this leader, using a list of questions at least
two pages long, about how this leader views leadership, what traits this leader has, and what the leader
has done to gain such a good reputation. Groups should present their findings to the class.
Out-of- Student groups should thoroughly research a
particular person they believe to be a strong leader. The research should include the trait theory of
leadership and at least one other leadership theory. Students should cite specific examples of behaviors
exhibited by this leader. The research should culminate in a paper or presentation to the class.
In- Divide the class into groups of 3 5 people. Assign one person
in each group to take notes and not participate in the exercise. This student should take notes on: 1) who
emerges as the leader; 2) what leadership style is used; and 3) how decision-making is conducted in the
At the end of the exercise, the note-taker should report to the class what happened in the exercise.
Leadership Search.
can consider anyone in the following areas: the corporate world, the nonprofit sector, the government
sector, the military, the entertainment industry, sports, etc. What makes these people leaders? What
specific leadership principles or ideas do these people have?