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Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17–2 L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Managers versus Leaders Contrast leaders and managers. Explain why leadership is an important behavioral topic. Early Leadership Theories Discuss what research has shown about leadership traits. Contrast the findings of the four behavioral leadership theories. Explain the dual nature of a leader’s behavior. Contingency Theories of Leadership Explain how Fiedler’s theory of leadership is a contingency model.

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Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17–2

L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.

Managers versus Leaders• Contrast leaders and managers.

• Explain why leadership is an important behavioral topic.

Early Leadership Theories• Discuss what research has shown about leadership traits.

• Contrast the findings of the four behavioral leadership theories.

• Explain the dual nature of a leader’s behavior.

Contingency Theories of Leadership• Explain how Fiedler’s theory of leadership is a

contingency model.

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17–3

L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.

Contingency Theories of Leadership• Contrast situational leadership and the leader

participation model.• Discuss how path-goal theory explains leadership.

Cutting Edge Approaches to Leadership• Differentiate between transactional and transformational

leaders.• Describe charismatic

Leadership Issues in the Twenty-First Century• Tell the five sources of leader’s power.• Discuss the issues today’s leaders face.

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L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter.

What Is An Organization?

• Describe the characteristics of an organization.

• Explain how the concept of an organization is changing.

Why Study Management?

• Explain the universality of management concept.

• Discuss why an understanding of management is important even if you don’t plan to be a manager.

• Describe the rewards and challenges of being a manager.

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Steve jobs

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Bill gates

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Nelson Mandela

LEADERSHIP

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• Leadership is the process of influencing a group toward the achievement of goals.

I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep. —Talleyrand

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Managers Versus Leaders

• Managers Are appointed to their

position

Can influence people only to the extent of the formal authority of their position

Implement the change

• Leaders Are appointed or emerge

from within a work group

Can influence other people and have managerial authority

Dream change

Early Leadership Theories

• Trait Theories (1920s-40s)Leaders like Buddha, Napoleon ,Mao, Churchill, Roosevelt,

Thatcher, Regan are successful because of their traits.

Trait theories of leadership differentiate leaders from nonleaders by focusing on personal qualities & characteristics.

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders

Later research on the leadership process identified seven traits

associated with successful leadership: Drive, the desire to lead, honesty and integrity, self-confidence,

intelligence, job-relevant knowledge, and extraversion.

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Trait Theories (1920s-40s)

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The personal qualities and traitsof Indra Nooyi make her a greatleader. Nooyi is CEO and boardchairman of PepsiCo, the secondlargest food and beverage firm inthe world. She is described as funloving,sociable, agreeable, conscientious,emotionally stable, andopen to experiences. Nooyi’s personalitytraits have contributed toher job performance and career success.She joined PepsiCo in 1994 ashead of corporate strategy and waspromoted to president and chieffinancial officer before moving intothe firm’s top management position.Nooyi has been named one ofthe most powerful women in businessand one of the most powerfulwomen in the world.

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Early Leadership Theories (cont’d)

• Behavioral Theories• Leadership determines on the basis of behavior

Ohio State studiesUniversity of Michigan StudiesManagerial grid

Early Leadership Theories (cont’d)

• Behavioral Theories (cont’d)

Ohio State Studies Identified 1000 dimensions in two catagories of leader

behavior– Initiating structure: the role of the leader in defining his or

her role and the roles of group members. leaders who give more focus on systems and deadlines.

– Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings. leaders who give more focus on sharing, participation and support.

A successful leader should play both the roles

17–13

Early Leadership Theories (cont’d)

• Behavioral Theories (cont’d)University of Michigan Studies

Identified two dimensions of leader behavior– Employee oriented: emphasizing personal relationships– Production oriented: emphasizing task accomplishment

Research findings: – Leaders who are employee oriented are strongly

associated with high group productivity and high job satisfaction.

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Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17–15

Early Leadership Theories (cont’d)

• Managerial GridBlake & Mouton proposed this gridAppraises leadership styles using two dimensions:

Concern for people Concern for production

Places managerial styles in five categories: poor management Task management Middle-of-the-road management Country club management Team management

Early Leadership Theories (cont’d)

• Managerial Grid

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Team management

Task ManagementPoor management

Country club management

Middle of the road

Contingency Theories of Leadership

• The Fiedler Model (cont’d)Proposes that effective group performance depends

upon the proper match between the leader’s style and the degree to which the situation allows the leader to control

Assumptions: A certain leadership style should be most effective in

different types of situations. Leaders do not readily change leadership styles.

– Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17–17

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17–18

Contingency Theories… (cont’d)

• The Fiedler Model (cont’d)

Least-preferred co-worker (LPC) questionnaire Determines leadership style by measuring responses to

18 pairs of contrasting adjectives like pleasant-unpleasant, efficient-inefficient, open-guarded, supportive-hostile etc.

– High score: a relationship-oriented leadership style– Low score: a task-oriented leadership style

Contingency Theories… (cont’d)

• The Fiedler Model (cont’d)

Situational factors in matching leader to the situation:

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Leader-member relations

Degree of confidence, trust and respect members have in their leader.

Task structure Degree to which job are procedurized( structured/unstructured)

Position power Power of hiring, firing, disciplinary actions, salary increases etc.

Graphic Representation of Fiedler’s Model

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Task oriented leaders are more successful when condition is favorable or unfavorable

relationship oriented leaders are more successful when condition is moderate

Findings

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Contingency Theories… (cont’d)

Path-Goal ModelDeveloped by Robert houseThe term path-Goal is derived from the belief that

effective leaders clarify the path to help their followers to achieve goals

Model States that the leader’s job is to assist his or her followers in attaining their goals and to provide direction or support to ensure their goals are compatible with organizational goals.

Path-Goal Model

Leaders assume different leadership styles at different times depending on the situation:

House assumes leaders are flexible and same leader can display any or all of this behaviors depending on situation

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Directive leader Give specific guidance to accomplish task

Supportive leader Friendly & shows concern for the needs of follower

Participative leader Take suggestions before taking decision

Achievement oriented leader

Set challenging goals and expects follower to perform at their highest level

Path-Goal Model

Two classes of contingency factors that moderate the leadership style and outcome

Environmental contingency factors-Outside the control of the employee

Personal characteristics

-part of employees

Environmental factors determine the leadership behavior where personal characteristics determine how employee evaluate and interpret the leader.

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Path-Goal Model

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Leader-Member Exchange (LMX) Theory

• LMX Premise:Because of time pressures, leaders form a special

relationship with a small group of followers: the “in-group”

This in-group is trusted and gets more time and attention from the leader (more “exchanges”)

All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer “exchanges”)

Leaders pick group members early in the relationship

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Leader-Member Exchange (LMX) Theory

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Current Approaches to Leadership

• Transactional LeadershipLeaders who guide or motivate their followers in the

direction of established goals by clarifying role and task requirements.

• Transformational LeadershipLeaders who inspire followers to transcend their own

self-interests for the good of the organization by clarifying role and task requirements.

Leaders who also are capable of having a profound and extraordinary effect on their followers.

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Current Approaches to Leadership (cont’d)

• House’s Charismatic Leadership Theory: Followers make attributions of heroic or extraordinary

leadership abilities when they observe certain behaviors

• Four characteristics of charismatic leaders: Have a vision Are willing to take personal risks to achieve the vision Are sensitive to follower needs Exhibit behaviors that are out of the ordinary

• Traits and personality are related to charisma• People can be trained to exhibit charismatic behaviors

How Charismatic Leaders Influence Followers

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• A four-step process:1. Leader articulates an attractive vision

Vision Statement: A formal, long-term strategy to attain goals

Links past, present, and future

1. Leader communicates high performance expectations and confidence in follower ability

2. Leader conveys a new set of values by setting an example

3. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision

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Current Approaches to Leadership (cont’d)

• Visionary LeadershipA leader who creates and articulates a realistic,

credible, and attractive vision of the future that improves upon the present situation.

Visionary leaders have the ability to: Explain the vision to others Express the vision not just verbally but through behavior Extend or apply the vision to different leadership

contexts

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Current Approaches to Leadership (cont’d)

• Team Leadership CharacteristicsHaving patience to share informationBeing able to trust others and to give up authority

Team Leader’s JobManaging the team’s external boundaryFacilitating the team process

Coaching, facilitating, handling disciplinary problems, reviewing team and individual performance, training, and communication

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Current Approaches to Leadership (cont’d)

• Team Leadership RolesLiaison with external constituenciesTroubleshooterConflict managerCoach

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Leadership Issues in the 21st Century

• Managing Power Legitimate power

The power a leader has as a result of his or her position.

Coercive power The power a leader has

to punish or control. Reward power

The power to give positive benefits or rewards.

Expert power The influence a leader

can exert as a result of his or her expertise, skills, or knowledge.

Referent power The power of a leader

that arise because of a person’s desirable resources or admired personal traits.

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Developing Credibility and Trust

• Credibility (of a Leader)The assessment of a leader’s honesty, competence,

and ability to inspire by his or her followers

• TrustThe belief of followers and others in the integrity,

character, and ability of a leader. Dimensions of trust: integrity, competence, consistency,

loyalty, and openness.

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Providing Online Leadership

• Challenges of Online LeadershipCommunication

Choosing the right words, structure, tone, and style for digital communications

Performance management Defining, facilitating, and encouraging performance.

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Empowering Employees

• Empowerment Involves increasing the decision-making discretion of

workers such that teams can make key operating decisions in develop budgets, scheduling workloads, controlling inventories, and solving quality problems.

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Gender Differences and Leadership

• Research FindingsMales and females use different styles

Women tend to adopt a more democratic or participative style unless in a male-dominated job.

Women tend to use transformational leadership.

Men tend to use transactional leadership.

successful leadership

Seven keys to successful leadership

Trusting in one’s subordinatesDeveloping a visionKeeping coolEncouraging riskBeing an expert Inviting oppositionSimplifying things

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