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Chapter 14: 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 14.
• Lesson Plan for Lecture (for large sections)
• Lesson Plan for Group Work (for smaller classes)
• Assignments with Teaching Tips and Solutions
What Would You Do Case Assignment – Apple
Self-Assessment – Leadership Orientation
Management Decision – To Cell or Not To Cell
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 Decision
Management Team Decision
Students are asked to decide what kind of salaries should be
given to company executives.
Practice Being a Manager
This exercise gives students an opportunity to play coach to a
leader entering a challenging situation.
Develop Your Career Potential
Building your leadership skills today can help you in a future
career.
Reel to Real Video Assignment – Biz
given a task of finding the scientist she hopes may have the
cure for the “Reaper Virus”.
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Supplemental Resources
Where to Find Them
Course Pre-Assessment
IRCD
Course Post-Assessment
IRCD
Learning Outcomes
1 Explain what leadership is.
Leadership is the process of influencing others to achieve group or organizational goals. Leaders are
different from managers. The primary difference is that leaders are concerned with doing the right thing,
while managers are concerned with doing things right. Furthermore, managers have a short-term focus
2 Describe who leaders are and what effective leaders do.
Trait theory says that effective leaders possess traits or characteristics that differentiate them from
nonleaders. Those traits are drive, the desire to lead, honesty/integrity, self-confidence, emotional
3 Explain Fiedler’s contingency theory.
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 situation,
and that favorable situations permit leaders to influence group members. According to the Least Preferred
Who Wants to Be a Manager game
IRCD and online
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situations” to fit leadership styles doesn’t work because the complexity of the model makes it difficult for
people to understand.
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
5 Discuss Hersey and Blanchard’s Situational Leadership Theory.
According to situational theory, leaders need to adjust their leadership styles to match their followers’
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
6 Explain how visionary leadership (that is, 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
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Terms
achievement-oriented leadership
charismatic leadership
consideration
contingency theory
directive leadership
path-goal theory
position power
situational favorableness
situational theory
strategic leadership
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.
• Bring book.
Warm Up
Content
Delivery
Topics
PowerPoint Slides
Activities
What is Leadership?
1 Leadership
1: Leadership
2: What Would You Do?
Prompt students to
critically examine slides 4
2 Who Leaders Are &
What Leaders Do
2.1 Leadership Traits
2.2 Leadership
Behaviors
7: Who Leaders Are and
What Leaders Do
8: Leadership Traits
9: Leadership Behaviors
10: Blake/Moulton
Leadership Grid
Favorableness
18: Matching Leadership
Situational Approaches to
Leadership
3 Fiedler’s Contingency
Theory
3.1 Leadership Styles
(LPC)
11: Situational
Approaches to
Leadership
12: Putting Leaders in
the Right Situation:
Fiedler’s Contingency
Theory
Styles to Situations
4 Path-Goal Theory
4.1 Leadership Styles
4.2 Subordinate &
Environmental
19: Path-Goal Theory
20: Assumptions of Path-
Goal Theory
21: Path-Goal Theory
Styles
5 Situational Leadership
Theory
5.1 Worker Readiness
5.2 Leadership Styles
26: Situational
Leadership Theory
27: Worker Readiness
28: Worker Readiness
29: Leadership Styles
The text states that except
at lower levels, the theory
doesn’t work well. Ask
students to speculate why
that is.
6 Normative Decision
Theory
6.1 Decision Styles
30: Normative Decision
Theory
31: Decision Styles
32: Decision Quality and
As you work through the
Normative Decision
Theory slides, consider
using a typical
7.2 Transformational
Leadership
38: Kinds of Charismatic
Leaders
38: Ethical and Unethical
Charismatics
40: Reducing Risk of
them on the board. If
student’s suggestions tend
only to include ethical
charismatics, prompt them
to identify unethicals
Special
Items
Conclusion
Lesson Plan for Group Work
Pre-Class Prep for You:
Pre-Class Prep for
Students:
• Review the material to cover and modify lesson plan to meet your
needs.
• Bring book.
Warm Up
Begin Chapter 14 by asking students, “What is leadership?” and “What is the difference
between leaders and managers?”? Write their answers on the board and refer to them as you
move through Section 1 of the lecture.
Lecture on Fiedler’s Contingency Theory and Path-Goal Theory (Sections 3 and 4).
Tell students that they are on a sinking ship and must determine which 5 items on the list
will be most necessary for survival.
“Marooned”
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
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for the group, the path-goal leadership style closest to the one the person(s) used, the
Hersey/Blanchard leadership style closest to the one the person(s) used, and how decisions
were made in the group.
Use the feedback to the question of how decisions were made during the “Marooned”
exercise to segue into your presentation of Normative Decision Theory (Section 6).
After lecturing on Section 6 and going over the text example of the casual dress policy, give
employee involvement in the decision (changing the telecommuting policy). Give
students 7-10 minutes to finish and regroup to share and compare results and
processes.
“To Commute or Telecommute, That Is the Question.”
Divide your class into groups of 3-4 students each and tell them, “Imagine you are the
management team for a video-game development company employing 200 people and
Conclude with Visionary Leadership (Section 7).
To introduce the section, ask students to shout out examples of charismatic leaders. Write the
names on the board. If students’ suggestions tend only to include ethical charismatics,
prompt them to identify unethicals 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.
Special
Items
The Develop Your Career Potential exercise for this chapter allows students to
systematically analyze past leadership experiences and gives them resources to build their
leadership skills.
Conclusion
and
Assignments:
1. Have students complete the Self Assessment exercise “Leadership Orientation” so that
Remind students about any upcoming events
Assignment Teaching Tips and Solutions
Case Assignment – What Would You Do?
What Really Happened? – Solution
APPLE
In the opening case, you learned that CEO and co-founder Steve Jobs’ return to Apple was the turning
point in the company’s history. After losing billions and seeing it’s share in the personal computer
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Jobs’ charismatic leadership was clearly central to Apple’s success. But can Apple succeed without him?
What steps should Apple take to increase its chances of continued success without Jobs as CEO? Are
there ways to substitute for Jobs’ leadership at Apple?
Steve Jobs charismatic leadership has clearly been central to Apple’s success. We know that
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 expectations to followers, and display confidence in followers’ abilities to achieve
the vision. Except for displaying confidence in follower’s abilities (Jobs is known for being
highly demanding, for his critical outbursts when performance falls short, and for holding
executives accountable for failure), Jobs is clearly a charismatic leader. Furthermore, his highly
successful return to Apple, fits with the pattern of charismatic leaders who tend to emerge in
times of crisis. Likewise, Jobs is seen as larger-than-life by most inside and outside of Apple.
The challenge for Apple is how to replace a charismatic leader like Jobs?
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
If leadership isn’t always needed, then what takes its place? Two factors, leadership
substitutes and neutralizers, can create situations in which leadership isn’t necessary or is
For instance, when subordinates have ability, experience, training, and knowledge about their
jobs, a subordinate’s work performance is unlikely to improve under task-related leader behavior
We see this at Apple in the form of the high amount of specialization throughout the
company. Unlike many major corporations which strive to turn leaders into general managers
By contrast, at Apple, executives rarely make decisions outside their functions. For instance,
Jennifer Bailey, who runs Apple’s online stores, doesn’t even have the authority to decide which
photos are used at Apple.com. All those decisions are made by Apple’s graphic arts department.
Next, is Tim Cook the right leader to replace Jobs? Jobs was demanding, creative, and controlling; Cook
is not. 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 concerned with doing things right. In other words, leaders begin
with the question, “What should we be doing?” while managers start with “How can we do what
we’re already doing better?” Leaders focus on vision, mission, goals, and objectives, while
managers focus on productivity and efficiency. Managers see themselves as preservers of the
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, “The period after the charismatic leader is gone is always perilous, but in
hypercompetitive, fast-moving industries, the loss becomes apparent much more rapidly.”
One way to gain some insight into this issue is to examine what has happened during Jobs
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For example, when Jobs returned after his liver transplant, he spent most of his time on leading
the team developing the iPad. The members of this team, who had had the freedom to make
But, that’s where the similarities end. A Silicon Valley investors says, “Nobody would make
Tim Cook CEO. That’s laughable. They don’t need a guy who merely [gets stuff done.] They
need a brilliant product guy, and Tim is not that guy. He is an ops guy-at a company where ops is
outsourced.” Michel Mayer, formerly CEO of Freescale Semiconductor which used to make
microprocessors for Apple, says of Cook, “I’m not sure he’d be able to replace Steve’s design
creativity. Then again, I could argue that it’s not the role of the next CEO to do that.” John
Thompson, vice chairman of Heidreck & Struggles, the search firm that placed Cook at Apple
says, “If Tim were to be CEO of Apple, he’d need to have different people around him to make
up for his weaknesses, just as Steve has Tim around to make up for his.”
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
So, should Apple replace Steve Jobs with a leader or a manager? Persuasive arguments can be made each
way. And, hopefully, it will be some time before we find out. 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?
Finally, Jobs was at the center of all of Apple’s key decisions over the last decade and a half. Jez
Frampton, group CEO of Interbrand says, “Now the worry is the organization has to rewire itself and
learn how to make decisions on its own.” Should 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
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Normative decision theory specifies five different decision styles or ways of making
While many key decisions at Apple are made by Jobs (AI or AII decisions), or by Jobs and
his top management team (CI and CII decisions), Jobs uses several approaches to bring in a
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 project, from revising Apple’s operating system to developing the new
MacBook Air laptop. Says Jobs, “Every Monday we review the whole business. We look at
every single product under development. I put out an agenda. Eighty percent is the same as it
While Jobs meets with his executive team and marketing and communications staff on a
weekly basis, Apple’s “Top 100,” meet once a year for a secretive three-day retreat. Participants
are not allowed to put the retreat on their calendar or discuss that they’re going to the Top 100
retreat with anyone else at Apple. Says Jobs, “My job is to work with sort of the Top 100
people. That doesn’t mean they’re all vice presidents. Some of them are just key individual
Finally, to prepare for the day that he is no longer CEO, Jobs hired Joel Podolny, formerly Dean of Yale’s
School of Management, to be vice president of human resources and to create Apple University. Podolny
is working with a team of business professors to write business cases about the major decisions Apple has
made over the last 15 years, so that a broader group of younger managers can learn how and why Apple
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Together, these approaches seem to be working and preparing Apple without Steve Jobs, but with Jobs’
continued influence. A former Apple executive says, “You can ask anyone in the company what Steve
wants and you’ll get an answer, even if 90% of them have never met Steve.”
Sources: B. Burrows, “The Essence of Apple,” Bloomberg BusinessWeek, 24 January 2011, 6-8; J. Champy,
“Apple’s Arrested Development,” Forbes 20 April 1998, 132; A. Hesseldahl, “Was Apple ‘Adequate but Late’ on
Self-Assessment
LEADERSHIP ORIENTATION
This chapter assessment is simply Fiedler’s Least Preferred Coworker Scale.
In-Class Use
Have students open their books to page 565 of the text and give them 5 to 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 open their books to page 565 so they can consult Exhibit
Scoring
Students’ scores will fall between 18 and 96. Once students calculate their raw scores, however, they will
want to know what they mean. Here’s what you can tell them:
The LPC scale was developed by Fred Fiedler to identify a person’s dominant leadership style.
According to Fiedler, this style is a relatively fixed part of your personality and is therefore difficult to
change. That assumption is the foundation of Fiedler’s contingency theory, which suggests that the key to
and are better leaders in highly favorable and unfavorable situations. If your score was less than 64,
Fielder considers you a task-oriented leader. If your score fell between 65 and 72, Fiedler describes your
style as flexible, as being able to somewhat relationship-oriented and somewhat task-oriented.
Management 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
might seem to be a more efficient way of management, it may actually hinder leaders’ effectiveness.
Setting It Up
Ask your students: “Do you ever wish you could just get rid of your cell phone?”
Questions
1. Do you believe that the CEO of a company can effectively do his or her job of leading without
being always accessible?
While student responses will vary, they should be rooted in the role that leaders play within an
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
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.
Setting It Up
You can introduce this exercise by showing students some recent statistics on executives’ salaries. For
example, a recent study from Harvard University showed that the average CEO makes 400 times more