Management

Fourteenth Edition, Global Edition

Chapter 16
Leadership

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Learning Objectives
16.1 Define leader and leadership.
16.2 Compare and contrast early theories of leadership.
16.3 Describe the three major contingency theories of
leadership.
Develop your skill at choosing an effective leadership
style.
16.4 Discuss contemporary issues affecting leadership.
Know how to prepare for an effective transition to a
leadership position.
16.5 Describe twenty-first century views of leadership.
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Who Are Leaders and What is Leadership?
• Leader: someone who can influence others and
who has managerial authority
• Leadership: a process of influencing a group to
achieve goals

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Leadership Traits
• Research focused on identifying personal
characteristics that differentiated leaders from
non-leaders was unsuccessful who can influence
others and who has managerial authority.
• It proved impossible to identify a set of traits that
would always differentiate a leader (the person)
from a nonleader of influencing a group to achieve
goals.

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 Exhibit 16-1: Eight Traits Associated with Leadership
Trait Description
Drive Leaders exhibit a high effort level. They have a relatively high desire for achievement, they are
ambitious, they have a lot of energy, they are tirelessly persistent in their activities, and they
show initiative.
Desire to Leaders have a strong desire to influence and lead others. They demonstrate the willingness
lead to take responsibility.
Honesty and Leaders build trusting relationships with followers by being truthful or nondeceitful and by
integrity showing high consistency between word and deed.
Self- Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-
confidence confidence in order to convince followers of the rightness of their goals and decisions.

Intelligence Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of
information, and they need to be able to create visions, solve problems, and make correct
decisions.
Job-relevant Effective leaders have a high degree of knowledge about the company, industry, and technical
knowledge matters. In-depth knowledge allows leaders to make well-informed decisions and to
understand the implications of those decisions.
Extraversion Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or
withdrawn.
Proneness to Guilt proneness is positively related to leadership effectiveness because it produces a strong
guilt sense of responsibility for others.

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Leadership Behaviors
• Behavioral theories: leadership theories that
identify behaviors that differentiate effective
leaders from ineffective leaders

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University of Iowa Studies
• Autocratic style: a leader who dictates work
methods, makes unilateral decisions, and limits
employee participation
• Democratic style: a leader who involves
employees in decision-making, delegates
authority, and uses feedback as an opportunity for
coaching employees
• Laissez-faire style: a leader who lets the group
make decisions and complete the work in
whatever way it sees fit
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Ohio State Studies
• Initiating structure: the extent to which a leader
defines his or her role and the roles of group
members in attaining goals
• Consideration: the extent to which a leader has
work relationships characterized by mutual trust
and respect for group members’ ideas and
feelings
• High–high leader: a leader high in both initiating
structure and consideration behaviors

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University of Michigan Studies
• Two dimensions of leadership:
– Employee oriented
– Production oriented

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The Managerial Grid
• Managerial grid: a two-dimensional grid for
appraising leadership styles

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Exhibit 16-2: Behavioral Theories of Leadership

Study Behavioral Dimension Conclusion

University of Democratic style: involving subordinates, delegating Democratic style of leadership

Iowa authority, and encouraging participation was most effective, although
Autocratic style: dictating work methods, centralizing later studies showed mixed
decision making, and limiting participation results.
Laissez-faire style: giving group freedom to make
decisions and complete work
Ohio State Consideration: being considerate of followers’ ideas and High–high leader (high in
feelings consideration and high in
Initiating structure: structuring work and work initiating structure) achieved
relationships to meet job goals high subordinate performance
and satisfaction, but not in all
situations.
University of Employee oriented: emphasized interpersonal Employee-oriented leaders
Michigan relationships and taking care of employees’ needs were associated with high
Production oriented: emphasized technical or task group productivity and higher
aspects of job job satisfaction.
Managerial Concern for people: measured leader’s concern for Leaders performed best with a
Grid subordinates on a scale of 1 to 9 (low to high) 9,9 style (high concern for
Concern for production: measured leader’s concern for production and high concern
getting job done on a scale of 1 to 9 (low to high) for people).

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The Fiedler Model
• Fiedler contingency model: a leadership theory
proposing that effective group performance
depends on the proper match between a leader’s
style and the degree to which the situation allows
the leader to control and influence
• Least-preferred coworker (LPC) questionnaire:
a questionnaire that measures whether a leader is
task or relationship oriented

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Fiedler’s Situational Contingencies
• Leader–member relations: describes the degree
of confidence, trust, and respect employees have
for their leader
• Task structure: describes the degree to which
job assignments are formalized and structured
• Position power: describes the degree of
influence a leader has over activities such as
hiring, ring, discipline, promotions, and salary
increases

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Exhibit 16-3
The Fiedler Model

Exhibit 16-3 illustrates the Fiedler Model.

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Hersey and Blanchard’s Situational
Leadership Style
• Situational leadership theory (SLT): a
leadership contingency theory that focuses on
followers’ readiness
• Readiness: describes the degree to which
job assignments are formalized and structured

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SLT Leadership Styles
• Telling (high task–low relationship)
• Selling (high task–high relationship)
• Participating (low task–high relationship)
• Delegating (low task–low relationship)

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Four Stages of Follower Readiness
• R1: both unable and unwilling
• R2: unable but willing
• R3: able but unwilling
• R4: both able and willing

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Path-Goal Model
• Path-goal theory: a leadership theory that says
the leader’s job is to assist followers in attaining
their goals and to provide direction or support
needed to ensure that their goals are compatible
with the goals of the group or organization

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Four Leadership Behaviors
• Directive leader
• Supportive leader
• Participative leader
• Achievement-oriented leader

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Exhibit 16-4
Path-Goal Model

Exhibit 16-4 illustrates that path-goal theory proposes two situational or contingency
variables that moderate the leadership behavior–outcome relationship.
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Leader-Member Exchange (LMX) Theory
• Leader-member exchange theory (LMX): the
leadership theory that says leaders create in-
groups and out-groups and those in the in-group
will have higher performance ratings, less
turnover, and greater job satisfaction

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Transformational/Transactional Leadership
• Transactional leaders: leaders who lead
primarily by using social exchanges (or
transactions)
• Transformational leaders: leaders who stimulate
and inspire (transform) followers to achieve
extraordinary outcomes
• A manager tends to focus on controlling
resources and optimising processes, while a
leader focuses on inspiring and empowering
people to work together towards a common
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Charismatic-Visionary Leadership
• Charismatic leader: an enthusiastic, self-
confident leader whose personality and actions
influence people to behave in certain ways
• Visionary leadership: the ability to create and
articulate a realistic, credible, and attractive vision
of the future that improves upon the present
situation

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Authentic Leadership
• Authentic leadership: leaders who know who
they are, know what they believe in, and act on
those values and beliefs openly and candidly

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Ethical Leadership
• An ethical leader puts public safety ahead of
profits, holds culpable employees accountable,
and creates a culture in which employees feel that
they could and should do a better job.

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Team Leadership
• Many leaders are not equipped to handle the
change to employee teams.
• Two priorities:
– Managing team’s external boundary
– Facilitating team process

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Exhibit 16-5
Team Leadership Roles

Exhibit 16-4 illustrates the four specific leadership roles.

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Managing Power (1 of 2)
• Legitimate power: the power a leader has as a
result of his or her position in the organization
• Coercive power: the power a leader has to
punish or control
• Reward power: the power a leader has to give
positive rewards

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Managing Power (2 of 2)
• Expert power: power that’s based on expertise,
special skills, or knowledge
• Referent power: power that arises because of a
person’s desirable resources or personal traits

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Developing Trust
• Credibility: the degree to which followers
perceive someone as honest, competent, and
able to inspire
• Trust: the belief in the integrity, character, and
ability of a leader

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Five Dimensions of Trust
• Integrity
• Competence
• Consistency
• Loyalty
• Openness

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Exhibit 16-6
Building Trust

Exhibit 16-6 offers some suggestions for how leaders can build trust.
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Empowering Employees
• Empowerment involves increasing the decision-
making discretion of workers. Millions of individual
employees and employee teams are making the
key operating decisions that directly affect their
work.

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Leading Across Cultures
• Effective leaders do not use a single style. They
adjust their style to the situation.
• National culture is certainly an important
situational variable in determining which
leadership style will be most effective.

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 Exhibit 16-7: Cross-Cultural Leadership
Examples
Korean leaders are expected to be paternalistic toward employees.
Arab leaders who show kindness or generosity without being asked to do so are seen by other
Arabs as weak.
Chinese leaders are expected to stay positive when facing attacks.
European leaders are expected to be more action oriented.
Japanese leaders are expected to be humble and speak frequently.
Latin American leaders should not feel rejected when others behave formally.
Scandinavian and Dutch leaders who single out individuals with public praise are likely to
embarrass, not energize, those individuals.
Effective leaders in Malaysia are expected to show compassion while using more of an
autocratic than a participative style.
Effective German leaders are characterized by high performance orientation, low compassion,
low self-protection, low team orientation, high autonomy, and high participation.
Effective leaders in Sub-Saharan Africa build deep relationships and close teamwork.

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Becoming an Effective Leader
• Leader training
• Substitutes for leadership

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Review Learning Objective 16.1
• Define leader and leadership.
– A leader influences and has authority
– Leadership involves influencing a group to
achieve its goal
– Leading is a function of management

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Review Learning Objective 16.2
• Compare and contrast early theories of
leadership.
– University of Iowa studies
– Ohio State studies
– University of Michigan studies
– Managerial grid

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Review Learning Objective 16.3
• Describe the three major contingency theories
of leadership.
– Fiedler’s model
– Hersey and Blanchard’s situational leadership theory
– Path goal model, Robert House

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Review Learning Objective 16.4
• Discuss contemporary issues affecting
leadership.
– Leader-membership exchange theory (LMX)
– Transactional/transformational leader
– Charismatic/visionary leader
– Authentic leadership
– Ethical leadership
– Team leader

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Review Learning Objective 16.5
• Describe twenty-first century views of
leadership.
– Fiver sources of a leader’s power
– Issues of:
 managing power
 developing trust
 empowering employees
 leading across cultures
 becoming an effective leader

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