Chapter THIRTEEN

Contemporary Issues
in Leadership

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 Framing: Using Words to Shape Meaning
and Inspire Others

Framing
A way to use language to
manage meaning

Leaders use framing

(selectively including
or excluding facts) to
influence how others
see and interpret
reality.

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 Inspirational Approaches to Leadership
Charismatic Leadership Theory
Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors.

Charismatic leaders:
1. Have a vision.
2. Are willing to take personal risks to achieve the
vision.
3. Are sensitive to follower needs.
4. Exhibit behaviors that are out of the ordinary.

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 Key Characteristics of Charismatic Leaders
1. Vision and articulation. Has a vision—expressed as an
idealized goal—that proposes a future better than the status quo;
and is able to clarify the importance of the vision in terms that are
understandable to others

2. Personal risk. Willing to take on high personal risk, incur high

costs and engage in self-sacrifice to achieve the vision

3. Environmental sensitivity. Able to make realistic

assessments of the environmental constraints and resources
needed to bring about change

4. Sensitivity to follower needs. Perceptive of others’ abilities

and responsive to their needs and feelings

5. Unconventional behavior. Engages in behaviors that are

perceived as novel and counter to norms

Source: Based on J. A. Conger and R. N. Kanungo, Charismatic E X H I B I T 13–1

Leadership in Organizations (Thousand Oaks, CA: Sage, 1998), p. 94.
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 Beyond Charismatic Leadership
 Level 5 Leaders
– Possess a fifth dimension—a paradoxical blend of
personal humility and professional will—in addition to
the four basic leadership qualities of individual
capability, team skills, managerial competence, and the
ability to stimulate others to high performance
– Channel their ego needs away from themselves and
into the goal of building a great company

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Transactional and Transformational Leadership

Transactional Leaders • Contingent Reward

Leaders who guide or motivate • Management by

Exception (active)
their followers in the direction of
established goals by clarifying role • Management by
Exception (passive)
and task requirements
• Laissez-Faire

Transformational Leaders
Leaders who provide the four “I’s” • Idealized Influence
(individualized consideration, • Inspirational Motivation
inspirational motivation, idealized • Intellectual Stimulation
influence, and intellectual • Individual Consideration
stimulation)

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 Characteristics of Transactional Leaders

Contingent Reward: Contracts exchange of rewards for

effort, promises rewards for good performance,
recognizes accomplishments
Management by Exception (active): Watches and
searches for deviations from rules and standards, takes
corrective action
Management by Exception (passive): Intervenes only
if standards are not met
Laissez-Faire: Abdicates responsibilities, avoids making
decisions

Source: B. M. Bass, “From Transactional to Transformational Leadership: Learning to

Share the Vision,” Organizational Dynamics, Winter 1990, p. 22. Reprinted by permission E X H I B I T 13–2
of the publisher. American Management Association, New York. All rights reserved.
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Full Range of Leadership Model

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 Characteristics of Transformational Leaders

Idealized Influence: Provides vision and sense of

mission, instills pride, gains respect and trust
Inspiration: Communicates high expectations, uses
symbols to focus efforts, expresses important purposes in
simple ways
Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving
Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises

E X H I B I T 13–2 (cont’d)

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 Authentic Leaders and Ethical Behavior

 Authentic leaders know who they are, what they

believe in and value, and act on those values openly
and candidly.
– Followers see them as ethical.
 Ethical leaders use ethical means to get followers to
achieve their goals, and the goals themselves are
ethical.

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 Ethical Leadership

Actions
• Work to positively change the
attitudes and behaviors of
employees
• Engage in socially constructive
behaviors
• Do not abuse power or use
improper means to attain goals

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 Trust: The Foundation of Leadership
Trust
A positive expectation that
another will not—through
words, actions, or
decisions—act
opportunistically
Trust is a history-dependent
process (familiarity) based
on relevant but limited
samples of experience (risk)

E X H I B I T 13–4

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 Dimensions of Trust
 Integrity  Loyalty
– Honesty and truthfulness – The willingness to
protect and save face for
 Competence another person
– An individual’s technical
 Openness
and interpersonal
knowledge and skills – Reliance on the person
to give you the full truth
 Consistency
– An individual’s reliability,
predictability, and good
judgment in handling
situations

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 Three Types of Trust
Deterrence-based Trust
Trust based on fear of reprisal if the trust is violated

Knowledge-based Trust
Trust based on behavioral predictability that comes from
a history of interaction

Identification-based Trust
Trust based on a mutual understanding of one another’s
intentions and appreciation of the other’s wants and
desires
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 Basic Principles of Trust
 Mistrust drives out trust.
 Trust begets trust.
 Growth often masks mistrust.
 Decline or downsizing tests the highest levels of trust.
 Trust increases cohesion.
 Mistrusting groups self-destruct.
 Mistrust generally reduces productivity.

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 Employees’ Trust in Their CEOs
Employees who believe in senior management:

E X H I B I T 12–2
Source: Gantz Wiley Research. Reproduced in USA Today, February 12, 2003, p. 7B.
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 Contemporary Leadership Roles: Providing
Team Leadership

Team Leadership Roles

• Act as liaisons with external
constituencies
• Serve as troubleshooters
• Managing conflict
• Coaching to improve team
member performance

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 Contemporary Leadership Roles: Providing
Team Leadership, cont’d.

E X H I B I T 13-6

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 Contemporary Leadership Roles: Mentoring

Mentor
A senior employee who Mentoring Activities
sponsors and supports
• Present ideas clearly
a less-experienced
employee (a protégé) • Listen well
• Empathize
• Share experiences
• Act as role model
• Share contacts
• Provide political
guidance

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Contemporary Leadership Roles: Self-Leadership

Self-Leadership Creating Self-Leaders

A set of processes • Model self-leadership
through which
individuals control their • Encourage employees to
create self-set goals
own behavior.
• Encourage the use of self-
rewards
• Create positive thought
patterns
• Create a climate of self-
leadership
• Encourage self-criticism
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 Online Leadership
 Leadership at a Distance: Building Trust
– The lack of face-to-face contact in electronic
communications removes the nonverbal cues that
support verbal interactions.
– There is no supporting context to assist the receiver
with interpretation of an electronic communication.
– The structure and tone of electronic messages can
strongly affect the response of receivers.
– An individual’s verbal and written communications may
not follow the same style.
– Writing skills will likely become an extension of
interpersonal skills

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 Challenges to the Leadership Construct
Attribution Theory of Leadership
The idea that leadership is merely an attribution that
people make about other individuals

Qualities Attributed to Leaders

• Leaders are intelligent, outgoing, have strong verbal skills,
are aggressive, understanding, and industrious.
• Effective leaders are perceived as consistent and
unwavering in their decisions.
• Effective leaders project the appearance of being a leader.

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 Substitutes and Neutralizers for Leadership
Relationship- Task-
oriented oriented
Defining Characteristics Leadership Leadership

Individual
Experience/training No effect on Substitutes for
Professionalism Substitutes for Substitutes for
Indifference to rewards Neutralizes Neutralizes

Job
Highly structured task No effect on Substitutes for
Provides its own feedback No effect on Substitutes for
Intrinsically satisfying Substitutes for No effect on

Organization
Explicit formalized goals No effect on Substitutes for
Rigid rules and procedures No effect on Substitutes for
Cohesive work groups Substitutes for Substitutes for

Source: Based on S. Kerr and J. M. Jermier, “Substitutes for Leadership: Their Meaning and E X H I B I T 13–7
Measurement,” Organizational Behavior and Human Performance, December 1978, p. 378.
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 Finding and Creating Effective Leaders
 Selection
– Review specific requirements for the job
– Use tests that identify personal traits associated with
leadership, measure self-monitoring, and assess
emotional intelligence
– Conduct personal interviews to determine candidate’s
fit with the job
 Training
– Recognize that all people are not equally trainable
– Teach skills that are necessary for employees to
become effective leaders
– Provide behavioral training to increase the
development potential of nascent charismatic
employees
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Chapter Check-up: Contemporary Issues in
Leadership

Which theory suggests that if you’re a

lawyer, you might not need a relationship or
a task-oriented leader?

Substitutes for Leadership Theory suggests that professionalism

(which a professional lawyer would have) can actually substitute
for task- and relationship-based leadership.

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Chapter Check-up: Contemporary Issues in
Leadership

If your leader skips down the hall, which theory

suggests the type of leader she or he is?
Transformational
Transactional
Level 5
Full Range
Charismatic

Your leader is exhibiting unconventional behavior,

which is something charismatic leaders do.
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 Chapter Check-up: Contemporary Issues in
Leadership

Julie spends time with each subordinate and

knows their development plans for the next
five years. Julie exhibits ____________.

Inspirational Motivation
Unconventional Behavior
Individualized Consideration
Full Range Leadership
Charismatic Leadership

Julie is showing individualized consideration, part of

transformational leadership.
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