CHAPTER 17
Managing Leadership and Influence Processes
CHAPTER SUMMARY
This chapter explores the nature of leadership and influence processes in organizations. After describing
the nature of leadership, the chapter discusses leader traits and behaviors and then focuses on the
situational approach to leadership. Related perspectives on leadership are then discussed. Finally, the
chapter concludes with a discussion of political behavior in organizations.
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Describe the nature of leadership and relate leadership to management.
2. Discuss and evaluate the two generic approaches to leadership.
The opening case highlights the work habits of several highly successful leaders. While each has an
unique way of approach his or her job, the case points out the keys: ability to function with minimal sleep,
dedication to exercise to keep the energy level up, ability to take in vast amounts of information, and the
ability to use many sources of information.
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LECTURE OUTLINE
I. THE NATURE OF LEADERSHIP
A. The Meaning of Leadership
Leadership is both a process and a property.
1. Leadership as a process is the use of noncoercive influence to shape the group’s or
Chapter 17: Managing Leadership and Influence Processes
Group Exercise: Have small groups of students brainstorm a list of names that they think of when they
hear the word “leadership.” Have a representative from each group write its list on the board. Note
similarities and differences among the different lists.
B. Leadership and Management
Teaching Tip: Walk through Table 17.1 with your students to highlight for them the various
distinctions that can be drawn between management and leadership.
Organizations need both good managers and good leaders if they are to be effective.
C. Leadership and Power
Power is the ability to affect the behavior of others.
Teaching Tip: Some instructors use their role vis-à-vis their students to illustrate power. For example,
instructors hold legitimate, reward, and expert power over students, but they may or may not hold
coercive and/or referent power.
1. Legitimate power is power granted through the organizational hierarchy.
Interesting Quote: “I’ve yelled at people and I’m not ashamed of it. We have to run this company
efficiently and without a bunch of babies who say ‘Mommy yelled at me today.’ It’s impossible to run
a leveraged operation like camp. If you don’t like it, leave. It’s not a prison.” (Linda Wachner, CEO of
Warnaco, Fortune, October 18, 1993, 41.)
Discussion Starter: Have students recall examples of when they have used or have witnessed these
various bases of power.
6. Several means of using power have been identified.
a) A legitimate request based on legitimate power.
b) Instrumental compliance, whereby a subordinate performs a duty requested and
Group Exercise: Have small groups of students connect specific kinds of power with each of the
potential uses of power. That is, each potential use of power relies on or assumes that the manager has
one or more kinds of power.
Chapter 17: Managing Leadership and Influence Processes
Discussion Starter: Ask students to critique each use of power in terms of its likely effectiveness and
acceptability.
II. GENERIC APPROACHES TO LEADERSHIP
These approaches assume that there is “one best way” to lead. The behavioral approaches are more
realistic and accurate than the trait approaches, but both of these generic approaches are overly simplistic.
A. Leadership Traits
Extra Example: Other traits that have been suggested as determinants of leader effectiveness include
astrological sign, birth order, body shape, and handwriting style.
Teaching Tip: Point out to students the assumptions about leadership traits that sometimes play a role
B. Leadership Behaviors
1. The Michigan studies (conducted by Likert) identified two basic forms of leader
behavior: job-centered leader behavior and employee-centered leader behavior.
the identification of Systems 1 through 4 forms of organization design, as discussed in Chapter 12.
2. The Ohio State studies also found two basic leader styles: initiating-structure behavior
and consideration behavior.
A leader who initiates structure clearly defines the leader-subordinate role so that
Extra Example: The Ohio State studies involved one of the earliest known attempts to train managers
to be more effective leaders.
3. The Managerial Grid is also based on two forms of leader behavior: concern for people
and concern for production.
Chapter 17: Managing Leadership and Influence Processes
Extra Example: The reason that little scientific evidence exists regarding the grid is that users must
sign a contract specifying that they will not allow outsiders to evaluate it.
III. SITUATIONAL APPROACHES TO LEADERSHIP
The goal of situational approaches to leadership is to identify key situational factors and to specify
Teaching Tip: Even though it is many years old, Tannenbaum and Schmidt’s leadership continuum,
presented in Figure 17.2 still is an effective way to introduce the idea of situational approaches to
leadership.
Interesting Quote: One early practitioner of situational leadership was President Lyndon Johnson.
Teaching Tip: The three scales presented here in the text are, of course, only part of the LPC
A. Least-Preferred Coworker (LPC) Theory
The LPC theory, developed by Fred Fiedler, was the first situational leadership theory. The
LPC theory is a combined trait and behavior approach.
1. First, the leader’s personality is assessed.
Fiedler argued that a leader’s personality makes him or her either task-oriented or
relationship-oriented. The least preferred coworker (LPC) scale determines a leader’s
2. Next, the situation is assessed. Fiedler believed that the favorableness of the situation is
the most important situational factor. Favorableness is determined by three things.
a) Leader-member relations refers to the trust and respect that exist between the
leader and the work group. Good relations are more favorable.
Discussion Starter: The LPC theory suggests that leader-member relations is the most important of the
Chapter 17: Managing Leadership and Influence Processes
Teaching Tip: Have students write hypothetical scenarios representing various levels of each aspect of
favorableness.
3. When the situation is the highly favorable or highly unfavorable, the best leadership style
Discussion Starter: Fielder asserts that leader behavior is inflexible and cannot be readily changed.
Ask students if they agree or disagree with this assertion.
Discussion Starter: If Fiedler’s theory is valid, what implications might be drawn regarding leadership
training programs?
B. Path-Goal Theory
The path-goal theory of leadership suggests that the primary functions of a leader are to make
valued or desired rewards available in the workplace and to clarify for the subordinate the
kinds of behavior that will lead to goal accomplishment and valued rewards.
1. Managers can adopt any one of four styles, depending upon the situation. Path-goal
theory, unlike LPC theory, assumes that managers can readily change style.
a) Directive managers let employees know what is expected of them.
Teaching Tip: Point out for students the logic underlying this theory’s somewhat awkward name: the
theory asserts that the leader’s primary function is to clarify for subordinates the path to their goals.
That is, the leader can enhance subordinate performance by determining what subordinates want (their
goals) and then making those goals clearly linked to performance (i.e., the path).
Cross-Reference: The path-goal theory of leadership is a direct extension of the expectancy theory of
Discussion Starter: Note that in contrast to the LPC theory, path-goal theory suggests that leaders can
alter their behavior with little difficulty. Poll your students to determine whether they agree.
C. Vroom’s Decision Tree Approach
Chapter 17: Managing Leadership and Influence Processes
1. Managers must first assess the situation and decide whether time is a critical element in
the situation. Based on the answers to these two sets of questions, the model
Teaching Tip: When the Vroom model was first introduced, a consulting firm marketed a device
similar to a pocket calculator for using the model. The user pressed yes/no buttons to answer the
model’s questions, and the display indicated the appropriate style of decision making.
Teaching Tip: The Vroom model is very complex and may be difficult for students to grasp. Walk
Global Connection: In recent years, Japanese managers have become very interested in learning how
to use the Vroom model.
D. The Leader-Member Exchange Approach
treatment than the out-group members.
Discussion Starter: Ask students if they have ever experienced in-group/out-group treatment. Also ask
them if they have ever observed a leader treating subordinates in different ways.
IV. RELATED APPROACHES TO LEADERSHIP
A. Substitutes for Leadership
Discussion Starter: Ask students to identify leadership substitutes that might work in a classroom
setting (e.g., structured assignments, group projects, etc.).
B. Charismatic Leadership
Charismatic leadership assumes that charisma is an individual characteristic of the leader, and
charismatic individuals are more successful in influencing others.
1. Charismatic leaders envision the future and have high expectations.
Discussion Starter: Ask students to identify popular charismatic leaders today.
Chapter 17: Managing Leadership and Influence Processes
Discussion Starter: As referenced in the text, ask students to debate the ethics of charismatic leadership.
C. Transformational Leadership
Teaching Tip: Some experts have noted that while transformational leaders may be perceived to be
highly effective during actual organizational transformation, they are often perceived to be less
effective when leading the organization after transformation is completed.
V. EMERGING APPROACHES TO LEADERSHIP
A. Strategic Leadership
Strategic leadership is the capability to understand the complexities of both the organization
Cross-Reference: Note that strategic leadership is closely related to the discussion of strategy and
strategic management that is found in Chapter 8.
B. Cross-Cultural Leadership
Effective cross-cultural leaders understand cultural and national differences and also the
diversity that exists within a national culture.
VI. POLITICAL BEHAVIOR IN ORGANIZATIONS
Political behavior consists of activities carried out for the specific purpose of acquiring, developing,
and using power and other resources to obtain one’s preferred outcomes.
Discussion Starter: Ask students if they think an organization can function without some form of
political behavior. Also ask them if they think political behavior is more likely to have positive or
negative effects on an organization.
A. Common Political Behaviors
1. Inducement means giving something in return for support.
2. Persuasion relies on manipulation of logic and emotions.
Chapter 17: Managing Leadership and Influence Processes
B. Managing Political Behavior
There are some guidelines for effective management of political behavior.
1. Be aware that others may assume your motives are political even if they are not.
Discussion Starter: Ask students to recall instances of positive and negative political behavior they
may have observed.
END OF CHAPTER QUESTIONS
Questions for Review
1. What activities do managers perform? What activities do leaders perform? Do organizations need
both managers and leaders? Why or why not?
Managers are responsible for planning, budgeting, organizing, staffing, controlling, and problem
2. What are the situational approaches to leadership? Briefly describe each and compare and contrast
their findings.
Situational approaches assume that appropriate leadership style varies from situation to situation.
LPC theory outlines two leadership styles: task-oriented and relationship-centered. Leadership style
3. Describe the subordinate’s characteristics, leader behaviors, and environmental characteristics used
in path-goal theory. How do these factors combine to influence motivation?
Subordinate’s characteristics include the subordinate’s perception of his or her own abilities and the
4. In your own words, define political behavior. Describe four political tactics and give an example
of each.
In their definitions, students should include power and its use to obtain desired outcomes.
Chapter 17: Managing Leadership and Influence Processes
Questions for Analysis
5. Even though the trait approach to leadership has no empirical support, it is still widely used. In your
opinion, why is this so? In what ways is the use of the trait approach helpful to those who use it?
In what ways is it harmful to those who use it?
The trait approach is intuitively appealing, in spite of lack of empirical support. People want to
believe in a theory that is simple, consistent, and broadly applicable, for example, that great leaders
6. The behavioral theories of leadership claim that an individual’s leadership style is fixed. Do you
agree or disagree? Give examples to support your position. The behavioral theories also claim that
the ideal style is the same in every situation. Do you agree or disagree? Again, give examples.
7. A few universities are experimenting with alternative approaches, such as allowing students to
design their own majors, develop a curriculum for that major, choose professors and design courses,
or self-direct and self-evaluate their studies. These are examples of substitutes for leadership.
Do you think this will lead to better outcomes for students than a traditional approach? Would you
personally like to have that type of alternative approach at your school? Explain your answers.
Better outcomes could be expected to the extent that students are intelligent, experienced, and
Questions for Application
8. Consider the following list of leadership situations. For each situation, describe in detail the kinds of
power the leader has. If the leader were the same but the situation changed—for example, if you
thought of the president as the head of his family rather than of the military—would your answers
change? Why?
• The President of the United States is Commander-in-Chief of the U.S. military.
Chapter 17: Managing Leadership and Influence Processes
9. Think about a decision that would affect you as a student. Use Vroom’s decision tree approach to
decide whether the administrator making that decision should involve students in the decision.
Which parts of the model seem most important in making that decision? Why?
Student responses will vary but an example might be as follows. Course schedules: (1) quality
10. Describe a time when you or someone you know was part of an in-group or an out-group. What was
the relationship between each of the groups and the leader? What was the relationship between the
members of the two different groups? What was the outcome of the situation for the leader? For the
members of the two groups? For the organization?
Clearly, answers will vary. Students should recognize that in–groups have closer relationships with
from the unhealthy competition and stress.
END OF CHAPTER EXERCISES
Building Effective Interpersonal Skills
I. Purpose
This exercise asks the students to examine the ways their attitudes toward work relationships reflect
their political behavior in the workplace.
II. Format
Students are given 20 statements that describe their use – actual or planned – of the described
behavior when they are on the job. They are asked to rate their response (rarely, occasionally, or
usually) to these questions.
III. Follow-Up
Chapter 17: Managing Leadership and Influence Processes
Students are asked to add up the total of responses that range from 20-100. Using the instructions
given in the exercise, they can determine their use of political power.
Building Effective Conceptual Skills
I. Purpose
Students will improve their conceptual skills through this exercise, which asks them to analyze an
instrument that purports to measure leadership.
II. Format
Students must work outside of class to find and complete the leadership quiz individually.
Discussion Questions 2 through 4 can be written or discussed in class, by individuals, small groups,
or the entire class. The quiz will take about 10–15 minutes to complete and discussion time will
vary.
III. Follow-Up
scoring and comments.
B. Review carefully each question and each suggested answer. Do you see any correlation
between Covey’s questions and the theoretical models of leadership discussed in this chapter?
Which model or models do you think Covey is using? What details in his questions, answers,
or both led you to that conclusion?
C. Use the Internet to investigate Covey’s background, training, and experience. Does the
information you’ve gathered give you any clues about Covey’s attitudes and opinions about
leadership? Do you see any connection between Covey’s attitudes and the items on his quiz?
Explain.
Students may relate Covey’s family life, education, or religious background to his principles.
D. Based on what you’ve learned from this exercise, how confident are you that Covey’s quiz is
an accurate measure of leadership ability? Explain.
The quiz clearly asks questions that have a reasonable relationship to leadership. However,
MANAGEMENT AT WORK
INSIDE LEADERSHIP AT INTEL
Chapter 17: Managing Leadership and Influence Processes
The opening incident describes leadership at Intel, the top chipmaker, over the course of its history. It’s
1. Case Question 1: What roles have referent power and expert power played in leadership at Intel?
Which Intel CEOs seem to have inclined toward job-centered leader behavior? Toward employee-
centered leader behavior? Toward initiation-structure behavior? Toward consideration behavior?
Both Noyce and Moore are likely to have used their referent power for effective leadership, while
2. Case Question 2: Apply the path-goal theory of leadership to Intel’s succession of CEOs. What
kind of leader behavior best applies to each CEO – directive, supportive, participative, achievement-
oriented?
It is difficult to say if any of the leaders mentioned in the case are clearly one of the kinds listed
3. Case Question 3: Intel appears to rely heavily on mentoring and long-term leadership development
from within. In your opinion, what are the pros and cons of such an approach? Intel also seems to
have thrived on a pattern of alternating leadership styles? What are the pros and cons of this
approach?
Intel believes that its top leaders should be people who have climbed up the company ladder. Thus,
4. Case Question 4: Of the five profiled Intel CEOs, whose leadership style most closely resembles
your own? Which of the five profiled CEOs would you most like to work for? Which would you
least like to work for?