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are ethical. If the transformational leader is engaged in activities that are not legal, this
would not be ethical. They should focus on actions that maximize shareholder value, but
only if the impact on stakeholders is ethical.
Section 14.5 Key Concepts:
Transformational Leaders
Full-range leadership suggests that leadership behavior varies along a full range of
leadership styles, from take-no-responsibility (laissez-faire) leadership at one extreme
through transactional leadership to transformational leadership at the other extreme.
Transformational leadership transforms employees to pursue organizational goals over
self-interests.
The best leaders learn to display both transactional and transformational styles of
leadership to some degree.
Transformational leadership leads to superior performance when it augments or adds to
transactional leadership.
Interactive Classroom Material:
EXAMPLE: The Superior Performance of Both a Transactional & Transformational
Leader: PepsiCo’s CEO Indra Nooyi
Four Key Behaviors of Transformational Leaders
There are four key behaviors of transformational leaders: inspirational motivation,
idealized influence, individualized consideration, and intellectual stimulation.
Inspirational Motivation
o Transformational leaders have charisma, a form of interpersonal attraction that
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o Charismatic leadership was once viewed as a category of its own, but now it is
considered part of transformational leadership.
Idealized Influence
o Transformational leaders inspire trust by being consistent, single-minded, and
Individualized Consideration
o Transformational leaders actively encourage followers to grow and excel by
Intellectual Stimulation
o These leaders are gifted at communicating the organizations strengths,
Connect® Exercise
CLICK AND DRAG: Key Behaviors of Transformational Leaders
Summary of Activity:
In this Click and Drag exercise, students will match the key behaviors of transformational
leaders with their appropriate examples.
SELF-ASSESSMENT 14.6
Is My Manager Transformational?
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Becoming a Leader
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This 10-question Self-Assessment measures students’ bosses’ transformational leadership.
Questions on future plans, modeling, and feelings are presented.
Click for follow-up activity.
Managerial Implications of Transformational Leadership
Transformational leadership can improve results for both individuals and groups.
Employees at any level can be trained to be more transactional and transformational.
Connect® Exercise
CASE ANALYSIS: Mary Barra’s Leadership Guides General Motors through a Crisis and
toward Profitability
Summary of Activity:
Follow-Up Activity:
Instructor should ask the class to think of examples of leaders using creative actions to inspire
their workforce. Have students experienced such leadership behavior? Instructor should then
divide the class into groups to think of creative ways to lead for meaningfulness. Groups should
share with the class and nonsharing groups should answer if they would or would not feel
inspired by such ideas.
Connect® Exercise
VIDEO CASE: Leadership at American Express
Summary of Activity:
Students will begin by watching a video on Ken Chenault, the former CEO of American Express.
Follow-Up Activity:
Instructor can open a class discussion using the following questions:
1. Which of the four transformational behaviors mentioned in the textbook did Ken Chenault
exhibit?
2. Can you think of other leaders that have exhibited transformational leadership? Who and how?
14.6 Three Additional Perspectives
POWERPOINT SLIDES:
#37 and #38 Two Additional Perspectives
#39 What Followers Want
Section 14.6 discusses two other kinds of leadership: the leader-member exchange model and
leading with humility. It also introduces a third perspective, which is the role of followers in the
leadership process.
Topics and Tips for Discussion:
1. How can leaders increase the number of followers they have when trying to implement
organizational change?
To make sure that followers are on board when a leader is implementing an
organizational change, he should understand the factors that contribute to employee
2. When deciding who to hire as a potential leader for an organization, how can you assess
his or her humility? How important do you think it is for leaders to be humble? Explain
your point of view.
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factors rather than we factors, he is likely not humble. If you ask about his weaknesses
or missing skills, and he does not claim to have any, this shows a lack of humility.
Leaders who have humility have a quiet confidence to them that is likely to be evident in
the interview process. Student views will differ as to the importance of leader humility,
but the leaders humility likely will impact the firms corporate culture and ultimately its
performance.
3. In evaluating your relationship with your current or most recent leader, would you be
considered a good follower? Does the leader address your needs as a follower? How can
you improve your leader-follower relationship?
A good follower would have some level of compliance with the leader and be productive,
reliable, honest, cooperative, proactive, and flexible. You can improve your leader-
Section 14.6 Key Concepts:
Leader-Member Exchange (LMX) Model of Leadership
The leader-member exchange (LMX) model of leadership emphasizes that leaders have
different sorts of relationships with different subordinates.
It focuses on the quality of relationships between managers and subordinates and assumes
that each manager/subordinate relationship is unique.
This unique relationship, which results from the leaders attempt to delegate and assign
work roles, can produce two types of leader-member exchange interactions:
SELF-ASSESSMENT 14.7
Assessing Your LeaderMember Exchange
This 12-question Self-Assessment measures the quality of students’ leader-member exchange.
Scores on mutual affection, loyalty, contribution to work activities, professional respect, and
overall leader-member exchange are calculated.
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Click for follow-up activity.
Group Exercise #2: Improving a Leader-Member Exchange Relationship
Exercise Objectives:
1. To give students an example of a real-life leader-member exchange relationship and have
them evaluate it.
The Power of Humility
Humility is a relatively stable trait grounded in the belief that something greater than the
self exists.
The Role of Followers in the Leadership Process
The quality of leadership appears to be dependent on the qualities of the followers being
led.
What Followers and Leaders Want
Research shows that followers seek and admire leaders who create feelings of:
o Significance: what one does at work is important and meaningful.
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Followers vary in their level of compliance with a leader.
o Helpers are the most compliant, showing deference to their leaders.
Interactive Classroom Material:
PRACTICAL ACTION: How to Be a Good Leader By Being a Good Follower
This Practical Action provides five ways you can become an intelligent follower.
Group Exercise #3: Comparing Traits, Behaviors, and Skills Between Leaders
There is a group exercise available at the end of this manual that provides students with the
opportunity to examine the leadership skills of famous leaders.
Exercise Objectives:
2. To explore different approaches to leadership.
14.7 Career Corner: Managing Your Career Readiness
POWERPOINT SLIDES:
Kinicki/Williams, Management, 9e: Chapter 14 Power, Influence, and Leadership: From Becoming a Manager to
Becoming a Leader
Section 14.7 discusses the importance of self-awareness as a competency important for career
readiness. Self-awareness entails understanding who you are and what you stand for. To foster
your self-awareness, you must first take the time to reflect. For this reflection, consider using a
journal where, at least weekly, you reflect on what has happened, what you learned, both in
Topics and Tips for Discussion:
1. Why is self-awareness an important skill for managers?
When managers are self-aware of their strengths and weaknesses, they will be viewed as
2. What have you learned thus far in this course about your strengths and weaknesses?
3. How can managers minimize the Dunning-Kruger bias?
You can minimize the Dunning-Kruger bias by always focusing on learning and
improving your competence. Thus, you want to foster a proactive learning orientation.
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Section 14.7 Key Concepts:
Becoming More Self-Aware
1. Take the time to reflect. You can build intentional reflection into your life by considering
the following questions on a regular basis:
What happened?
2. Write down your priorities. Self-awareness begins with identifying your top priorities for
3. Learn your strengths and weaknesses. Completing self-assessments like the ones featured
4. Avoid the Dunning-Kruger effect. The Dunning-Kruger effect is cognitive bias whereby
people who are incompetent at something are unable to recognize their own incompetence.
And not only do they fail to recognize their incompetence; theyre also likely to feel
confident that they actually are competent.
Connect® Exercise
CLICK AND DRAG: How to Become More Self-Aware
Summary of Activity:
Career Corner Group Exercise: Using Your ABCs to Become More Self-Aware
Exercise Objective:
To increase students self-awareness.
CAREER
READINESS
CAREER
READINESS
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MANAGEMENT IN ACTION
VA TURNAROUND: A WAITING GAME
Problem-Solving Perspective
1. What is the underlying problem in this case from the VA secretarys perspective?
2. What are the causes of this problem?
3. What recommendations would you make to the Department of Veterans Affairs for fixing
this problem?
One recommendation would focus on strengthening the infrastructure. It seems clear that
Application of Chapter Content
1. From the perspective of trait theories, how would you evaluate the VA leaders discussed
in the case? Which traits did each of the leaders possess? Which traits were they lacking?
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It seems that the VA leaders discussed in the case generally took a Passive approach to
leadershipthey did not take responsibility for the failures within the VA and, hence, the
problems persisted even with the infusion of billions of dollars in funding. Additionally,
2. What skills would you suggest as most important for the next VA secretary to possess?
Do you think any of the previous VA leaders displayed these skills?
3. Evaluate both McDonald and Shulkin according to their task-oriented and relationship-
oriented leadership behaviors. In which areas do you think each succeeded? In which
areas do you think each failed?
It is clear that Bob McDonald possessed stronger interpersonal traits than task-related
traits. His strengths were in his extraversion and agreeableness, interacting personally
(including, impressively, via text and phone calls) with Veterans in need. He also,
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4. How would transformational leadership theory suggest that the next VA secretary should
approach the task of turning around the struggling agency?
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LEGAL/ETHICAL CHALLENGE
SHOULD STARBUCKS HAVE A CORPORATE LOITERING POLICY?
Solving the Challenge
1. I am not in favor of Starbucks instituting a corporate loitering policy. Decisions on how
to manage customers and when to involve police should be made by store-level
leadership, not corporate executives. Some locations are busier than others and should be
able to decide whether nonpaying customers are taking up space that would otherwise go
to paying customers. Managers should also have the discretion to call the police when
they feel its appropriate. A single bad decision by one store manager shouldnt represent
the entire company, and most managers know how to apply these types of policies in a
fair and nondiscriminatory fashion. The additional bias training will help prevent similar
incidents from occurring in the future.
2. I think its a good idea for Starbucks to have a corporate loitering policy. This type of
leadership should come from the top of the organization and set the tone for whats
important to the company. A corporate policy would provide clearer guidance to store
managers on how to handle nonpaying customers and would also protect the company
from liability due to store managers making bad decisions. Starbucks should also provide
clear and consistent guidelines for managers on when its appropriate to call law
enforcement.
This is the other side of the spectrum. It may be appropriate for there to be a corporate
3. I think it might be a good idea for Starbucks to have a corporate loitering policy,
provided the policy does not lead to the appearance of discrimination and allows
Starbucks to maintain its identity as a socially responsible, warm, welcoming place to
spend time with others. For example, the policy could state that loitering is welcomed as
long as there are no paying customers waiting for a seat. If paying customers dont have
anywhere to sit, then nonpaying customers should leave to make room for them. I think
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all employees should participate in unconscious-bias training to ensure the policy is
applied fairly and consistently.
This is a sort of twist on the second option. It is positive in the sense that it tries to
4. Invent another option.
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TEXTBOOK EXAMPLES
EXAMPLE: Great Leaders Worldwide
This Example profiles two well-known world leaders: Canada’s Justin Trudeau and Germany’s
Angela Merkel.
YOUR CALL
What leadership traits do you think Justin Trudeau exhibits? What leadership traits does Angela
Merkel seem to have? Which do they share, and how do they differ? What might account for any
differences?
ADDITIONAL ACTIVITIES
One way to build on this Example is to have the students watch the CNN video “Justin Trudeau:
We Need Inclusive Growth for All.” In this 9-minute video, CNN correspondent Christiane
Amanpour talks with Canadian Prime Minister Justin Trudeau. Consider using the following
discussion questions:
1. Discuss the traits, interpersonal attributes, and skills that likely contributed to Trudeau’s
leadership success.
3. Thinking back to the concepts in Chapter 11, discuss how Canada seems to have overcome the
barriers to diversity in accepting recent immigrants. Why do you think other countries are less
accepting of recent immigrants?
EXAMPLE: Lauren Bush Lauren’s Empowering, Values-Driven Leadership at Feed
This Example profiles Lauren Bush Lauren (LBL) and her company Feed. She is a leader in the
effort to reduce child hunger around the world. She was able to fuse her love of fashion with her
passion for helping to design a company that provides free meals through selling fashion
merchandise linked to those meals. She empowers her workers, her consumers, all members in
her supply chain as well as the children who directly benefit from the free meals.
ONLINE
VIDEO
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YOUR CALL
1. How is LBL’s leadership both ethical and empowering?
are 1) through the creation of a strong ethical climate in its policies, procedures and practices
2. How do ethics and empowerment combine to make FEED so successful in accomplishing its
mission?
ADDITIONAL ACTIVITIES
Have students visit the Feed site. Ask them to explore the site. There is a blog, ways to get
involved, information on the history of Fee, even a continuously updated count of the meals
provided to date (103,321,360 right now!) Remind them to look at the site map at the bottom and
to look at careers with the company. After students have spent time learning about the company,
consider leading a discussion focused around questions such as:
1. Would you want to work for a company such as Feed? Why? Discuss how its values intersect
2. If you read some of the Blog posts, what interested you or inspired you the most?
3. How important is LBL’s personality traits to her leadership and the success of the company?
What traits do you think are most important?
EXAMPLE: Servant-Leadership: Leaders Who Work For The Led
This Example offers short profiles of two successful servant leaders: Mike DeFrino, CEO of
Kimpton Hotels & Restaurants, and Marc Benioff, CEO of Salesforce
YOUR CALL
1. Understandably, servant leadership is popular with employees. How do you think servant
leadership helps companies be successful?
14.5 and ask them how each of the leadership elements in the table can contribute to an
organization’s performance.
2. Do you think there are any situations in which servant leadership would not be appropriate?
The text points out the servant leadership in not a quick-fix approach to organizational conflict
or change. Can they think of situations in which even a servant leader would need to put the
needs of the company above the goals of the members? Can a servant leader be successful in any
type of organization, or are there situations that would limit or even eliminate a servant leader’s
effectiveness?
ADDITIONAL ACTIVITIES
2. Discuss how DeFrino displays servant leadership.
EXAMPLE: The Superior Performance of Both a Transactional & Transformational
Leader: PepsiCo’s CEO Indra Nooyi
This Example profiles PepsiCo’s CEO, Indra Nooyi. Nooyi exhibits the qualities of both a
transactional and a transformational leader.
YOUR CALL
Which of the four key transformational leader behaviors did Nooyi display? What other types of
leader behavior are evident in this example?
Nooyi seems to be focused on “idealized influence” or, “We are here to do the right thing.” She
ADDITIONAL ACTIVITIES
One way to build on this Example is to have the students watch the Connecticut Women’s Hall
ONLINE
VIDEO
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1. Describe the life experiences and individual characteristics that likely have shaped Nooyi’s
transformational leadership style.
2. Describe examples of how Nooyi displays a transformational leadership style.
3. Describe some of the challenges you believe PepsiCo will face in the next 5 to 10 years. In
other words, what supertrends are on the horizon for which the company will need to prepare?
Kinicki/Williams, Management, 9e: Chapter 14 Power, Influence, and Leadership: From Becoming a Manager to
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TEXTBOOK PRACTICAL ACTIONS
PRACTICAL ACTION: Applying Situational Theories
This Practical Action provides a general, five-step strategy managers can use across a variety of
situations in order to be successful.
ADDITIONAL ACTIVITIES
Critique the extent to which the “my way or the highway” style of coaching is likely to be
effective with today’s generation of athletes.
Apply the path-goal model to describe the characteristics of football players which are likely
linked to the appropriate leadership style a coach should use.
PRACTICAL ACTION: How To Be a Good Leader By Being a Good Follower
This Practical Action provides five ways you can become an intelligent follower.
YOUR CALL
Do you think you’ve been a good follower in past jobs?
Student responses will vary based on past experiences. Ask students to link their responses to the
ADDITIONAL ACTIVITIES
One way that you could build on this Practical Action is to have the students read the Fast
ONLINE
ARTICLE
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will improve your followership, your relationship with your boss, and also prepare you for the
role of leader. Consider using the following discussion questions:
1. Discuss how changes in technology and social media are changing the role of followers.
2. Discuss how the skills you learn as a good follower can make you a better leader.