Chapter 12: Leadership P a g e | 1
Effective Management 7th Edition
Chapter 12: Leadership
Pedagogy Map
This chapter begins with the learning outcome summaries and terms covered in the chapter, followed by a
set of lesson plans for you to use to deliver the content in Chapter 12.
Lesson Plan for Lecture (for large sections)
Lesson Plan for Group Work (for smaller classes)
Assignments with Teaching Tips and Solutions
Highlighted Assignments Key Points
What Would You Do? Steve Jobs led Apple to unprecedented success. But, because
of health problems, Jobs had to step down, and Apple now
faces a potential leadership crisis.
Management Team Decision Being an effective leader requires tough decision making and
direct communication in difficult times. The question is how
much to involve employees in those tough decisions.
Additional Assignments Key Points
Management Team Decision Students are asked to decide what kind of salaries should be
given to company executives.
Develop Your Career Potential Building your leadership skills today can help you in a future
career.
Learning Outcomes
12-1 Explain what leadership is.
Leadership is the process of influencing others to achieve group or organizational goals. Leaders are
12-2 Describe who leaders are and what effective leaders do.
Trait theory says that effective leaders possess traits or characteristics that differentiate them from
12-3
en their work groups perform well, that leaders are
unable to change their leadership styles, that leadership styles must be matched to the proper situation,
and that favorable situations permit leaders to influence group members. According to the Least Preferred
12-4 Describe how path goal theory works.
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 for goal
Chapter 12: Leadership P a g e | 3
12-5 ® theory.
readiness, which is the ability (job readiness) and willingness (psychological readiness) to take
12-6 Explain the normative decision theory.
The normative decision theory helps leaders decide how much employee participation should be used
when making decisions. Using the right degree of employee participation improves the quality of
12-7 Explain how visionary leadership (i.e., charismatic and transformational leadership) helps
leaders achieve strategic leadership.
Strategic leadership requires visionary, charismatic, and transformational leadership. Visionary leadership
creates a positive image of the future that motivates organizational members and provides direction for
future planning and goal setting. Charismatic leaders have strong, confident, dynamic personalities that
vision. Followers of ethical charismatic leaders work harder, are more committed and satisfied, are better
performers, and are more likely to trust their leaders. Followers can be just as supportive and committed
Chapter 12: Leadership P a g e | 4
Terms
achievement-oriented leadership
charismatic leadership
path goal theory
position power
situational favorableness
worker readiness
Lesson Plan for Lecture
Pre-Class Prep for You: Pre-Class Prep for Students:
Review the chapter and determine what points to
cover.
Bring PPT slides.
Read Chapter 12, bring book.
Warm Up Begin Chapter 12 ,
Write their answers on the board and refer to them as
you move through Section 12-1 of the lecture.
Content
Delivery
Lecture slides: Make note of where you stop so you can pick up at the next class
meeting. Slides have teaching notes on them to help you as you lecture.
Topics PowerPoint Slides Activities
12-1 Leadership
12-1a Leaders versus
1: Leadership
2: What Would You Do?
Prompt students to
critically examine slide 3,
12-2 Who Leaders Are
and What Leaders Do
12-2b Leadership
4: Trait Theory
5: Leadership Traits
7: What Really Works
12-3 Putting Leaders in
the Right Situation:
Theory
12-3a Leadership Style:
Least Preferred Coworker
12-3c Matching
Leadership Styles to
9: Contingency
Theory
10: Least Preferred
Coworker
11: Sample from
Least Preferred
Favorableness
13: Matching Leadership
12-4 Adapting Leader
Behavior: Path Goal
Theory
12-4a Leadership Styles
12-4b Subordinate and
12-4c Outcomes
15: Path Goal Theory
16: Leadership Styles
17: Subordinate
Contingencies
18: Environmental
When to Use Directive,
Supportive, Participative,
Chapter 12: Leadership P a g e | 6
12-5 Adapting Leader
Behavior: Hersey and
Situational
Leadership Theory
12-5b Leadership Styles
21: Worker Readiness
22: Leadership Styles
The text states that except
at lower levels, the theory
. Ask
students to speculate why
12-6 Adapting Leader
Behavior: Normative
Decision Theory
12-6b Decision Quality
and Acceptance
23: Decision Styles and
Levels of Employee
Participation
Decision Rules
25: Normative Decision
As you work through the
Normative Decision Theory
slides, consider using a
decision to determine
employee involvement. If
12-7 Strategic
Leadership and
Visionary Leadership
12-7a Charismatic
Leadership
12-7b Transformational
Leadership
26: Charismatic
Leadership
27: Ethical and Unethical
Charismatics
28: Transformational
Leadership
29: Components of
Consider introducing this
section by asking students
to shout out examples of
charismatic leaders. Write
them on the board. If
students suggestions tend
only to include ethical
Management Workplace 30: Camp Bow Wow Launch video in slide 30.
Questions on slide can
guide discussion.
Conclusion
Possible assignments:
2. Assign students to review Chapter 12 and read the next chapter on your syllabus.
Remind students about any upcoming events.
Chapter 12: Leadership P a g e | 7
Lesson Plan for Group Work
Pre-Class Prep for You: Pre-Class Prep for Students:
Review the material to cover and modify your
lesson plan to meet your needs.
Read Chapter 12, bring book.
Warm Up Begin Chapter 12 nd,
Write their answers on the board and refer to them as you
move through Section 12-1 of the lecture.
Content
Delivery
Introduce the chapter and present What Is Leadership (Sections 12-1 and 12-2).
After presenting the distinction between leaders and managers, consider breaking for the
following activity:
Divide the class into groups of 3 5 people. Assign one person in each group to take
note and not participate in the exercise. This student should take notes on: 1) who
emerges as the leader of the group; 2) what leadership style they use; and 3) how
decision-making is conducted in the group. Give all groups the following scenario:
and surprise! a genie appears! The genie states that he will grant three wishes, but
Segue into the next section by telling students that many theories take a situational approach
to leadership.
gency Theory, Path Goal Theory
Situational Leadership Theory (Sections 12-3, 12-4, and 12-5).
Divide your class into groups of 6 8 students each. Ask one person in each group to
record the proceedings of the group during the activity. Ask all students to write a list of
three of their favorite things, three things they always have with them, or three things in
their backpack right now, etc. Each group, then, will have a list of 18 24 random objects.
Chapter 12: Leadership P a g e | 8
After lecturing on Section 12-6 and going over the text example of the casual dress policy,
give students the opportunity to practice normative decision theory with the following
activity:
Divide your class into groups of 3
management team for a video-game development company employing 200 people and
based in California. Because of high gasoline prices and longer commutes, your team
Conclude with Strategic Leadership and Visionary Leadership (Section 12-7).
To introduce the section, ask students to shout out examples of charismatic leaders. Write the
names on the board.
prompt them to identify unethical charismatics. If the list contains names for both types, then
push students to derive a definition of charismatic based on the names on the board.
Conclusion
Assignments:
2. If you have finished covering Chapter 12, assign students to review Chapter 12 and
read the next chapter on your syllabus.
Remind students about any upcoming events
Chapter 12: Leadership P a g e | 9
Assignments with Teaching Tips and Solutions
What Would You Do Case Assignment
What Really Happened? Solution
APPLE
In the case, you learned that CEO and co– s return to Apple was the turning point in
just 2 percent, Jobs launched the iMac and OS X, the highly reliable operating system that made Apple
profitable again. Furthermore, his vision and leadership put Apple in a financial position to eventually
percent share of the personal
s char
s
leadership at Apple?
Steve Jobs charismatic leadership ha
charismatic leaders articulate a clear vision for the future that is based on strongly held values or morals,
model those values by acting in a way consistent with the vision, communicate high performance
This kind of thinking illustrates one of the basic assumptions about leadership: namely, that leaders
always matter. According to this thinking, organizations are sure to fail without sound leadership, and
ord business professor Jeffrey
Pfeffer says surviving the exit of a charismatic leader depends on preserving or strengthening the part of
the company that made the company great (under the charismatic leader). Walmart continued to grow
Should Tim Cook try to emulate Jobs or should he run Apple using a different leadership style? Should
Cook focus more on managing or leading Apple?
According to University of Southern California business professor Warren Bennis, the primary difference
between leaders and managers is that leaders are concerned with doing the right thing, while managers are
Chapter 12: Leadership P a g e | 10
with,
vision, mission, goals, and objectives, while managers focus on productivity and efficiency. Managers see
themselves as preservers of the status quo, while leaders see themselves as promoters of change and
Without any doubt, Steve Jobs is a leader, not a manager. The question, however, is what kind of CEO
should follow Jobs? The decision is critical for Apple, says leadership professor Jay Conger because,
-moving
One way to gain some insight into this issue is to examine what has happened during Jobs extended
medical absences from the company. One thought is that anyone can manage Apple, but that Jobs
-it- s
s medical leaves, Apple has thrived under the
leadership of Chief Operating Officer Tim Cook. Cook, like Jobs, demands much of the people who work
10
questions. If you answer them right, he’ll ask you 10 more. If you do this for a year, he’ll start asking you
keeps going and going. It isn’t funny, and it
CEO. That’s laughable. They don’t need a guy who merely [gets stuff done]. They need a brilliant product
And while Jobs is creative, demanding, and visionary, Cook is demanding, and is an accomplished
manager who knows how to execute and get things done. When Apple came out with the iPod Nano,
Chapter 12: Leadership P a g e | 11
just gets things done. But he’s been with Steve long enough that he knows how he thinks. He’s been
working for years with this steady mantra of, ‘What would Steve do?’ And then whatever he decides, he
So, should Apple replace Steve Jobs with a leader or a manager? Persuasive arguments can be made each
way. If you were an Apple investor, what kind of leader would you want? Would you feel the same way if
you were an Apple manager or employee?
Fin
Apple become more participative, involving more managers and employees, or continue to use Jobs
centralized approach to decision making, which was less participative and highly influenced by the
founder and former CEO?
A great deal of leadership theory focuses on who leaders are (trait theory) or how they should behave
toward subordinates (leadership style). However, one of the most effective leadership theories, known as
normative decision theory, focuses on helping leaders determine what company decisions should be made
by the leader, or by the leader after consulting with others, or made by others in the company. Using the
right degree of employee participation improves the quality of decisions and the extent to which
employees accept and are committed to decisions.
Jobs holds a set of weekly meetings that guide what gets done at Apple. On Mondays, he meets with his
executive team to discuss strategy, review results, and assess the status of every product development
out an agenda. Eighty percent is the same as it was the last week, and we just walk down it every single
week. We don’t have a lot of process at Apple, but that’s one of the few things we do just to all stay on the
While Jobs meets with his executive team and marketing and communications staff on a weekly basis,
-day retreat. Participants are not allowed to put
the retreat on their calendar or discuss t
Chapter 12: Leadership P a g e | 12
part of my
Finally, to prepare for the day that he would no longer be CEO, Jobs hired Joel Podolny, formerly Dean
Podolny is working with a team of business professors to write business cases about the major decisions
Management Team Decision
TO CELL OR NOT TO CELL
Purpose
In this case, students are asked to consider how accessible a leader should be. Thanks to the Internet and
smartphones, company leaders can be reached all over the world at almost any time of day. While this
Setting It Up
Questions
1. Do you believe that the CEO of a company can effectively do his or her job of leading without
being always accessible?
2. If you, as the CEO, were to get rid of your phone, how would ensure that lines of communication
remain open?
Students are likely to respond in several ways. They may choose, for example, to set regularly