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Questions
1. What are the advantages and disadvantages of tying an executive’s pay to the company’s
performance?
The advantage is that by tying the CEO’s pay to performance, the company gives the CEO more
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?
As cited above, it will be difficult to attract an ideal candidate when other companies are giving out
3. How much input would you give company employees in making a decision on executive pay?
As described in Section 5.1, 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
Practice Being a Manager
COACH A LEADER
Leadership is a highly prized process and capability. Organizations invest billions of dollars each year in
recruiting and developing leadership talent. As more companies compete primarily on the basis of how
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well they employ their human capabilities, the importance of leadership continues to grow. This exercise
will provide you with an opportunity to play coach to a leader entering a challenging situation.
Step 1: Get into groups. Your professor will assign you to pairs or small groups.
Scenario: Many challenges face the new CEO of Hewlett-Packard (H-P). H-P is a company with a
Step 2: Outline leadership criteria. Work as a team to develop a set of leadership recommendations that
are well matched to the H-P situation. What do you think employees need most from their new leader?
Step 3: Determine a coaching plan. Prepare to coach the CEO during the process of transforming H-P.
How might path-goal thinking help the CEO guide H-P employees through the transition? What should
Step 4: Debrief as a class. Share some of the highlights of your recommendations, and discuss what
leadership consultants/coaches need to know to effectively advise their clients.
TEACHING NOTES – PRACTICE BEING A MANAGER
Exercise Overview and Objective
Hewlett-Packard (HP) is a company with a long and rich tradition. But recently HP has struggled through
a muddled merger and leadership turmoil. The objective of this exercise is to give students practice in
using leadership theory to analyze a situation such as that facing HP. 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
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 HP. The exercise
provides questions to frame the team’s discussion and recommendation formulation. Step 2 opens this
process with these questions:
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• What do you think employees (HP) need most from their leader?
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 HP employees through the transition?
The consulting teams are likely to require a minimum of thirty (30) minutes to effectively respond to
these six (6) questions. You may select a smaller set of questions, or substitute questions of your own, as
suits your objectives and time frame.
Class debriefing should follow the completion of team recommendations. Depending upon your
schedule, this debriefing may occur in a subsequent class session. One approach to the debriefing is for
you to play the role of the Senior Consultant, a partner in the consulting firm. In this role you might
Develop Your Career Potential
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
class and then pairing them off to work through question 5. Another suggestion for using this exercise
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THE ROLE OF HUMILITY IN LEADERSHIP
Everybody makes mistakes; today’s media–saturated culture makes everyone’s mistakes everyone else’s
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.
Questions
1. Describe a time when something you did or said had a profound negative impact on a person, group,
or situation.
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?
Reel to Real – Biz Flix
Because they are so short, the Biz Flix videos are best used to supplement your lesson plans. They are
designed to illustrate the content rather than convey all of the chapter concepts.
Video: Doomsday
Segment Summary:
In the futuristic action thriller Doomsday, the “Reaper Virus” strikes the British Isles in 2007 and
devastates the population of Scotland. Authorities go to desperate lengths to quarantine it, sealing off
borders and not allowing anyone to enter or leave the country. Social decay spreads, and cannibalistic
? ?
Discussion Questions from Text:
1. Assess the behavior of both Major Sinclair and Michael Canaris. Which leadership traits does their
behavior show?
Trait theory is one way to describe who leaders are. This theory holds that effective leaders possess a
similar set of traits or characteristics. These traits or characteristics include tall height and physical
stamina, desire to lead, honesty and integrity, self-confidence, emotional stability, cognitive ability,
2. Does this film sequence show any aspects of charismatic and transformational leadership?? Draw
some examples from the sequence.
Charismatic leadership involves the behavioral tendencies and personal characteristics of leaders that
create an exceptionally strong relationship between them and their followers. One can argue that
Additional Discussion Questions:
1. According to chapter 14, the two basic leader behaviors include initiating structure and
consideration. Does Michael Canaris display either of these behaviors during his conversation with
Major Sinclair?? ? ? ?
Initiating structure is the degree to which a leader structures the roles of followers by setting goals,
giving directions, setting deadlines, and assigning tasks. Canaris is successful in fulfilling this
2. In your opinion, does Major Sinclair display worker readiness?
Worker readiness is the ability and willingness to take responsibility for directing one’s behavior at
Reel to Real – 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 14 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
Video: Camp Bow Wow
Leadership
Summary:
While consistency and conformity are critical to the success of any chain, Camp Bow Wow
seeks creative input from the franchisees who bought in to the system. To maintain a standard
Discussion Questions from Text:
1. Does Camp Bow Wow CEO Heidi Ganahl possess qualities associated with contemporary
leadership?
Heidi Ganahl possesses many qualities associated with contemporary leadership, including
humility, lack of ego, a focus on organizational growth, and a desire to help others achieve
2. In what way is Heidi Ganahl’s leadership charismatic and visionary? Give examples.
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
guides all her personal and business decisions.
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3. Where does Heidi Ganahl’s leadership fall on the Leader-ship Grid discussed in the chapter?
Explain.
Heidi Ganahl is driven to achieve performance results (high concern for production), yet she is
also very personable and willing to delegate authority to subordinates (high concern for people).
As a result, Ganahl fits within the Team Management category (9,9) on the Leadership Grid.
Workplace Video Quiz
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:
Option a
Can be accomplished by identifying the one single leadership style that
works across all situations
Option b
Can be accomplished through a variety of different leadership styles,
depending on the situational factors
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:
Option a
Time power
Option b
Award power
Option c
Constructive power
Option d
Position power
Correct option
d: Position power
Feedback for option a
Incorrect. Position power is the degree to which leaders are able to hire,
Feedback for option b
Incorrect. Position power is the degree to which leaders are able to hire,
Feedback for option d
Correct. Position power is the degree to which leaders are able to hire, fire,
reward, and punish workers.
Option a
Option c
Can be accomplished only if the leader is relationship-oriented
Option d
Requires the use of self-managed teams
Correct option
b: Can be accomplished through a variety of different leadership styles,
depending on the situational factors
Feedback for option a
Incorrect. According to contingency theory, leaders must be matched to the
Feedback for option d
Incorrect. According to contingency theory, leaders must be matched to the
right leadership situation.
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Option b
Encouraging creativity
Option c
Preserving the status quo
Option d
Outlining long-term plans
Correct option
c: preserving the status quo
Video Segment 2
Video segment title
Leadership
Start time (in sec)
2:12
Stop time (in sec)
4:16
Quiz Question 1
Franchisee Sue Ryan speaks glowingly of Heidi Ganahl’s concern for
people. This indicates that Heidi Ganahl has a high degree of:
Option a
Consideration
Option b
Initiating structure
Option c
Authority
Option d
Dominance
Correct option
a: consideration
Feedback for option a
Correct. Consideration is the extent to which a leader is friendly,
approachable, and supportive, and shows concern for employees.
Feedback for option b
Incorrect. Consideration is the extent to which a leader is friendly,
approachable, and supportive, and shows concern for employees.
Feedback for option c
Incorrect. Consideration is the extent to which a leader is friendly,
approachable, and supportive, and shows concern for employees.
Feedback for option d
Incorrect. Consideration is the extent to which a leader is friendly,
approachable, and supportive, and shows concern for employees.
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:
Option a
Situational theory
Option b
Behavioral theory
Option c
Trait theory
Option d
All of these
Correct option
c: Trait theory
Feedback for option a
Incorrect. According to trait theory, effective leaders possess a similar set
of traits or characteristics.
Feedback for option c
Correct. According to trait theory, effective leaders possess a similar set of
Feedback for option a
the status quo of an organization.
Feedback for option b
the status quo of an organization.
Feedback for option d
the status quo of an organization.
traits or characteristics.
Feedback for option d
Incorrect. 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:
Option a
1,9country-club leader)
Option b
9,1 (authority-compliance leader)
Option c
1,1 (impoverished leader)
Option d
9,9 (team management)
Correct option
d: 9,9 (team management)
Feedback for option a
Incorrect. The team management style involves a high concern for people
Feedback for option b
Incorrect. The team management style involves a high concern for people
and a high concern for production.
Feedback for option d
Correct. The team management style involves a high concern for people
and a high concern for production.
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:
Option a
Participative leadership
Option b
Directive leadership
Option c
Supportive leadership
Option d
Guiding leadership
Correct option
a: participative leadership
Feedback for option a
Correct. Participative leadership involves consulting employees for their
suggestions and input before making decisions.
Feedback for option b
Incorrect. Participative leadership involves consulting employees for their
suggestions and input before making decisions.
Feedback for option c
Incorrect. Participative leadership involves consulting employees for their
suggestions and input before making decisions.
Feedback for option d
Incorrect. Participative leadership involves consulting employees for their
suggestions and input before making decisions.
effectively with one of her franchisees
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Option b
Camp Bow Wow founder Heidi Ganahl says that her role has changed
from micromanagement of day-to-day operational details to strategic
oversight of the company’s overall vision and direction
Option c
Franchisee Sue Ryan says that she purchased her Camp Bow Wow kennel
from Heidi Ganahl
Option d
None of these
operations, leaders need to be concerned with long-term plans.
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:
Option a
Transactional leadership
Option b
Visionary leadership
Option c
Task-oriented leadership
Option d
Authoritarian leadership
Correct option
b: Visionary leadership
and goal setting.
Feedback for option b
Correct. Visionary leadership creates a positive imager of the future that
motivates company members and provides direction for future planning
and goal setting.
Feedback for option c
Incorrect. Visionary leadership creates a positive imager of the future that
and goal setting.
Review Questions
1. What are the differences between leaders and managers?
Leadership is the process of influencing others to achieve group or organizational goals. Leaders are
2. Do leaders always matter?? Explain your answer in terms of substitutes and neutralizers?
Correct option
b: Camp Bow Wow founder Heidi Ganahl says that her role has changed
Feedback for option a
Incorrect. While managers are concerned with day-to-day, short term
operations, leaders need to be concerned with long-term plans.
Feedback for option b
Correct. While managers are concerned with day-to–day, short term
Feedback for option c
Incorrect. While managers are concerned with day-to-day, short term
Leaders don’t always matter. There are situations and circumstances in which leadership isn’t
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
4. Explain how Fiedler’s contingency theory works.
Fiedler’s theory assumes that leaders are effective when their work groups perform well, that leaders
are unable to change their leadership styles, that leadership styles must be matched to the proper
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
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.
In contrast to Fiedler’s contingency theory, path-goal theory assumes that leaders can and do change
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directive
supportive
participative
• Inexperienced
workers
• Structured, simple,
repetitive tasks
• Workers with high
perceived ability
• Unstructured
tasks
• Stressful, frustrating
tasks
• Experienced
workers
8. Explain normative decision making theory (the Vroom-Yetton-Jago model).
The normative decision theory suggests how leaders can determine an appropriate amount of
9. What is the difference between transformational leadership and transactional leadership?
Transformational leadership generates awareness and acceptance of a group’s purpose and mission
and by getting employees to see beyond their own needs and self-interest for the good of the group.
Additional Activities and Assignments
Out-of-Class Project: “Interview a Leader.” Student groups should select a leader in their community,
such as a religious leader, a business leader, a political leader, or a teacher. Anyone in a leadership role
Out-of-Class Project: “Leadership Case Study.” Student groups should thoroughly research a
particular person they believe to be a strong leader. The research should include the trait theory of
In–Class Activity: “A Leader Emerges.”? Divide class into groups of 3-5 people. Assign one person in
ability
control
system
Give groups the following scenario:
“You and your group have just uncovered a genie’s lamp. You rub it and surprise!? A genie appears.
The genie states that he will grant three wishes, but you all have to agree on these wishes…there is no
dividing the wishes to be individual wishes. Brainstorm a list of about 10 wishes your group would
like to make. Narrow this list down to the three that you are allowed. Provide reasons for these to be
your final choices.”
At the end of the exercise, the note-taker should report to the class what happened in the exercise.
Ronald Heifetz, one of the world’s experts on leadership, offers his views on the leader of the future.
Read his ideas and then summarize them in a two-page paper. How will tomorrow’s leader differ from
today’s leader?
of leadership. Summarize what you believe to be the top 10 rules and list examples of how you’ve
personally seen these in action.
and take the 20-minute leadership skills assessment. What did you learn about yourself? What are some
major areas for you to improve upon before you take a leadership position in a career?