chapter 14 leadership copyright © 2012 pearson education canada inc.14-1

Copyright © 2012 Pearson Education Canada Inc.

Chapter 14

Leadership

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Learning Outcomes:

1. Define leader and leadership.

2. Compare and contrast early theories of leadership.

3. Describe the three major contingency theories of leadership.

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Learning Outcomes:

4. Describe modern views of leadership.

5. Discuss contemporary issues affecting leadership.

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Who Are Leaders, and What Is Leadership?


Leaders:

A person who can influence others and provide vision and strategy to the organization.

Leadership:

The process of influencing individuals or groups toward the achievement of goals.

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Trait Theories (1920s–30s)

• Research that focused on identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful.

• Later research on the leadership process identified seven traits associated with successful leadership

Early Leadership Theories

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Exhibit 14-1 Seven Traits Associated with Leadership

1. Drive

2. Desire to lead

3. Honesty and integrity

4. Self-confidence

5. Intelligence

6. Job-relevant knowledge

7. Extraversion

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Behavioural Theories

1. University of Iowa Studies (Kurt Lewin)• Identified three leadership styles:

• Autocratic style: centralized authority, low participation• Democratic style: involvement, high participation, feedback• Laissez-faire style: hands-off management

• Research findings: mixed results• No specific style was consistently better for producing better

performance. Employees were more satisfied under a democratic leader than an autocratic leader.


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2. Ohio State Studies• Identified two dimensions of leader behaviour

• Initiating structure: the role of the leader in defining his or her role and the roles of group members.

• Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings.

• Research findings: mixed results• High-high leaders generally, but not always, achieved high

group task performance and satisfaction.• Evidence indicated that situational factors appeared to

strongly influence leadership effectiveness.


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3. University of Michigan Studies• Identified two dimensions of leader behaviour

• 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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Exhibit 14-2 Behavioural Theories of Leadership

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4. Managerial Grid:

Appraises leadership styles using two dimensions:

• Concern for people• Concern for production


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Exhibit 14-3 The

Managerial Grid

Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.

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The Fiedler Model

• Effective group performance depends upon the match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence

• Assumptions:• Different situations require different leadership styles • Leaders do not readily change leadership styles

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

Contingency Theories of Leadership

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Fiedler’s Research

Three contingency dimensions that defined the key situational factors in leader effectiveness:

1. Leader–member relations - The degree of confidence, trust, and respect employees had for their leader; rated as either good or poor.

2. Task structure - The degree to which job assignments were formalized and structured; rated as either high or low.

3. Position power - The degree of influence a leader had over activities such as hiring, firing, discipline, promotions, and salary increases; rated as either strong or weak.


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Exhibit 14-4 The Fiedler Model

Poor

Good

Highly Favourable Situation Favourableness: Moderate Highly Unfavourable

I

Good

High

Good

High

Strong Weak

Good

Low

Weak

Poor

High

Strong

Poor

High

Weak

Poor

Low

Strong

Poor

Low

Weak

Good

Low

Strong

II III IV V VI VII VIIICategory

Leader–Member Relations

Task Structure

Position Power

RelationshipOriented

TaskOriented

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Hersey and Blanchard’s Situational Leadership® Theory

• Successful leadership is achieved by selecting a leadership style that matches the level of the followers’ readinessAcceptance: do followers accept or reject a leader?Readiness: do followers have the ability and willingness to

accomplish a specific task?

• Leaders must give up control as followers become more competent.


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S3 S2

S4 S1

STYLE OF LEADER

Task Behaviour

High

Low High

High relationshipand low task

High task andhigh relationship

Low relationshipand low task

Moderate

Follower Readiness

LowHigh

Ableand

willing

Ableand

unwilling

Unableand

willing

Unableand

unwilling

R4 R3 R2 R1

High task andlow relationship



Path-Goal Model

• Leader’s job is to assist his or her followers in achieving organizational goals.

• Leader’s style depends on the situation:• Directive• Supportive• Participative• Achievement-oriented

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Exhibit 14-6 Path-Goal Theory


EnvironmentalContingency Factors

• TaskStructure• Formal Authority System• Work Group

SubordinateContingency Factors

• Locusof Control• Experience• Perceived Ability

Leader Behaviour

• Directive• Supportive• Participative• Achievement Oriented

Outcomes

• Performance• Satisfaction

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Transactional Leadership:

Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

Transformational Leadership:

Leaders who inspire followers to go beyond their own self-interests for the good of the organizationLeaders who have a profound and extraordinary effect on their followers.

Contemporary Views of Leadership

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How to be a Transformational Leader

• Individualized consideration: Pay attention to the needs of individual followers to help them reach their full potential.

• Intellectual stimulation: Provide “ways and reasons for followers to change the way they think about” things.

• Inspirational motivation: “Set an example of hard work, give ‘pep’ talks, [and] remain optimistic in times of crisis.”

• Idealized influence: Show respect for others, building confidence and trust about the mission in followers.


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Charismatic Leadership:

An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways.

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Characteristics of Charismatic leaders:

• Have a vision• Are able to articulate the vision• Are willing to take risks to achieve the vision• Are sensitive to the environment and to follower

needs• Exhibit behaviours that are out of the ordinary


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Visionary Leadership:

A 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 behaviour• Extend or apply the vision to different leadership contexts

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Team Leadership Characteristics Having patience to share information Being able to trust others and to give up authority Understanding when to intervene

Team Leader’s Job Managing the team’s external boundary Facilitating the team process

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

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Exhibit 14-7 Team Leadership Roles

Team LeaderRoles

Liaison withExternal

ConstituenciesCoach

ConflictManager Troubleshooter

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Managing Power:

1. Legitimate powerThe power a leader has as a result of his or her

position.

2. Coercive powerThe power a leader has to punish or control.

3. Reward powerThe power to give positive benefits or rewards.

Leadership Issues in the Twenty-First Century

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4. Expert powerThe influence a leader can exert as a result of his

or her expertise, skills, or knowledge.

5. Referent powerThe power of a leader that arises because of a

person’s desirable resources or admired personal traits.

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Empowering Employees

Empowerment:

Involves increasing the decision-making discretion of workers

Why empower employees?• Quicker responses to problems and faster decisions• Relieves managers to work on other problems


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Empowerment Cautions:

The following conditions should be met for empowerment to be introduced:

• Clear definition of company’s values and mission• Employees have relevant skills• Employees need to be supported, not criticized, when

performing• Employees need to be recognized for their efforts


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Leading Across Cultures

National culture is an important situational variable in determining which leadership style will be most effective.


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Becoming an Effective Leader

Can Anyone Be a Leader?Some people don’t have what it takes to be a leaderSome people are more motivated to lead than others

Is Leadership Always Necessary?Some people don’t need leadersLeaders need to be aware of followers’ needs

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chapter 14 leadership copyright © 2012 pearson education canada inc.14-1

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