copyright © 2015 pearson education, inc. 12-1. copyright © 2015 pearson education, inc. chapter...

Copyright © 2015 Pearson Education, Inc.

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Chapter 12: Leadership

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Learning ObjectivesAfter studying this chapter, you should be able to:Contrast leadership and management.Summarize the conclusions of trait theories of leadership.Identify the central tenets and main limitations of behavioral

theories.Assess contingency theories of leadership by their level of

support.Contrast charismatic and transformational leadership.Define authentic leadership.Demonstrate the role mentoring plays in our understanding of

leadership.Address challenges to the effectiveness of leadership.

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Contrast Leadership and Management

Leadership is the ability to influence a group toward the achievement of a vision or set of goals. Not all leaders are managers, nor are all

managers leaders. Nonsanctioned leadership is often as important or

more important than formal influence.

LO 1

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Contrast Leadership and Management

Strong leadership and strong management are needed for optimal effectiveness.

Leaders: Challenge the status quo. Create visions of the future. Inspire organizational members to want to achieve the

visions. Managers:

Formulate detailed plans. Create efficient organizational structures. Oversee day-to-day operations.

LO 1

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Trait theories of leadership focus on personal qualities and characteristics. The search for personality, social, physical, or

intellectual attributes that differentiate leaders from non-leaders goes back to the earliest stages of leadership research.

LO 2

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Summarize the Conclusions of Trait Theories of Leadership


A breakthrough came when researchers began organizing traits around the Big Five personality framework.

Most of the dozens of traits in various leadership reviews fit under one of the Big Five, giving strong support to traits as predictors of leadership.

LO 2

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The trait approach does have something to offer. Good leaders:

Like being around people. Are able to assert themselves (extraverted). Are disciplined and able to keep commitments

they make (conscientious). Are creative and flexible (open).

LO 2

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Another trait that may indicate effective leadership is emotional intelligence (EI).

Advocates of EI argue that without it, a person can have outstanding training, a highly analytical mind, a compelling vision, and an endless supply of terrific ideas, but still not make a great leader.

A core component of EI is empathy.

LO 2

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Conclusions based on the latest findings: Contrary to what we believed 20 years ago, and

thanks to the Big Five, we can say that traits can predict leadership.

Traits do a better job predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effective and ineffective leaders.

LO 2

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Behavioral theories of leadership imply we can train people to be leaders.

Ohio State Studies found two behaviors that accounted for most leadership behavior: Initiating structure – the extent to which a leader is

likely to define and structure his role and those of employees in the search for goal attainment.

Consideration – the extent to which a person’s job relationships are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings.

LO 3

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Identify the Central Tenets and Main Limitations of Behavioral Theories



University of Michigan’s objectives also identified two behavioral types: The employee-oriented leader emphasized

interpersonal relationships by taking a personal interest in the needs of employees and accepting individual differences among them.

The production-oriented leader emphasized the technical or task aspects of the job, focusing on accomplishing the group’s tasks.

LO 3

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The GLOBE study suggests there are international differences in preference for initiating structure and consideration. Based on the values of Brazilian employees, a

U.S. manager leading a team in Brazil would need to be team oriented, participative, and humane. Leaders high in consideration would succeed best in this culture.

LO 3

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Summary of Trait Theories and Behavioral Theories Leaders who have certain traits and who display

consideration and structuring behaviors do appear to be more effective.

Traits and behaviors do not guarantee success. Context matters, too.

LO 3

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Assess Contingency Theories of Leadership By Their Level of Support

The Fiedler contingency model A key factor in leadership success is the

individual’s leadership style.Least preferred co-worker (LPC) questionnaire.

Task or relationship oriented.Assumes leadership style is fixed.

LO 4

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Defining the Situation Contingency dimensions:

1. Leader-member relations2. Task structure3. Position power

LO 4

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LO 4

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Evaluation of the Fiedler model Considerable evidence to support at least

substantial parts of the model. Problems with the practical use of the model.

Logic underlying the LPC is not well understood.

LPC scores are not stable.Contingency variables are complex and difficult

for practitioners to assess.

LO 4

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Other Contingency Theories Situational leadership theory (SLT) is a

contingency theory that focuses on the followers. Successful leadership is achieved by selecting

the right leadership style, which is contingent on the level of the followers’ readiness.

LO 4

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Path-goal theory, developed by Robert House: One of the most respected approaches to

leadership. Contingency model of leadership that extracts key

elements from the Ohio State leadership research on initiating structure and consideration and the expectancy theory of motivation.

Derived from belief that effective leaders clarify the path to help followers achieve work goals.

LO 4

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Vroom & Yetton’s leader-participation model relates leadership behavior and participation in decision making. Leader behavior must adjust to reflect the task

structure. Model is normative – it provides a decision tree of

seven contingencies and five leadership styles for determining the form and amount of participation in decision making.

LO 4

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LO 4

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LO 5

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Contrast Charismatic and Transformational Leadership



Are Charismatic Leaders Born or Made? Some individuals are born with charismatic traits,

others are trained to exhibit charismatic behaviors.Develop the aura of charisma by maintaining an

optimistic view, using passion as a catalyst for generating enthusiasm, and communicating with the whole body, not just with words.

Create a bond that inspires others to follow. Bring out the potential in followers by tapping

into their emotions.

LO 5

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How Charismatic Leaders Influence Followers Articulating an appealing vision. Developing a vision statement. Establishing a new set of values. Conveying courage and conviction about the vision.

LO 5

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Does Effective Charismatic Leadership Depend on the Situation? People are especially receptive when they sense a

crisis, when they are under stress, or when they fear for their lives.

LO 5

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The Dark Side of Charismatic Leadership Many leaders have allowed their personal goals to

override the goals of the organization. Individuals who are narcissistic are also higher in

some behaviors associated with charismatic leadership.

Some charismatic leaders are too successful at convincing followers to pursue a vision that can be disastrous.

LO 5

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LO 5

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LO 5

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How Transformational Leadership Works Creativity – theirs and others. Decentralization of responsibility. Propensity to take risks. Compensation is geared toward long-term results. Greater agreement among top managers about

the organization’s goals. Increase follower self-efficacy, giving the group a

“can do” spirit.

LO 5

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Evaluation of Transformational Leadership Transformational leadership has been supported

at diverse job levels and occupations, but isn’t equally effective in all situations. It has a greater impact on the bottom line in

smaller, privately held firms than in more complex organizations.

LO 5

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The GLOBE study of 18,000 leaders from 825 organizations in 62 countries links a number of elements of transformational leadership with effective leadership, regardless of country. Very important because it disputes the

contingency view that leadership style needs to adapt to cultural differences.

Universal elements are vision, foresight, providing encouragement, trustworthiness, dynamism, positiveness, and proactiveness.

LO 5

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Define Authentic Leadership

What is Authentic Leadership? Authentic leaders:

Know who they are.Know what they believe in and value.Act on those values and beliefs openly and

candidly. The result: people come to have faith in them.

LO 6

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Ethical Leadership Ethics touches on leadership at a number of

junctures. Efforts have been made to combine ethical and

charismatic leadership into an idea of socialized charismatic leadership – leadership that conveys other-centered values by leaders who model ethical conduct.

LO 6

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Servant Leadership Servant leaders go beyond their self-interest and

instead focus on opportunities to help followers grow and develop. Emphasize persuasion.

Characteristic behaviors include listening, empathizing, persuading, accepting stewardship, and actively developing followers’ potential.

LO 6

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Trust and Leadership Trust – a psychological state that exists when you

agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out.A primary attribute associated with leadership. When trust is broken, it can have serious

adverse effects on a group’s performance.

LO 6

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Define Authentic LeadershipLO 6

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Define Authentic LeadershipTrust as a Process

Trust propensity – how likely a particular employee is to trust a leader. Time: we come to trust people based on observing

their behavior over time.Can also be won by demonstrating competence.

Leaders who break the psychological contract with workers, demonstrating they aren’t trustworthy, will find employees are less satisfied and less committed, have higher intentions to turnover, engage in less citizenship behavior, and have lower task performance.

LO 6

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What Are the Consequences of Trust? Trust encourages taking risks. Trust facilitates information sharing. Trusting groups are more effective. Trust enhances productivity.

LO 6

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Demonstrate the Role Mentoring Plays in our Understanding of Leadership

LO 7

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Address Challenges to the Effectiveness of Leadership

Much of an organization’s success or failure is due to factors outside the influence of leadership. In many cases, success or failure is just a matter

of being in the right or wrong place at a given time.

The attribution theory of leadership says leadership is merely an attribution people make about other individuals.

LO 8

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LO 8

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Online Leadership Needs more research. Today’s managers and employees are increasingly

linked by networks rather than geographic proximity.Online leaders have to think carefully about what

actions they want their digital messages to initiate. Identification-based trust is difficult to achieve

without face-to-face interaction.Writing skills are likely to become an extension of

interpersonal skills.

LO 8

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Selecting Leaders Identifying effective leaders:

Review specific requirements for the position.Consider personality tests to identify leadership

traits. Situation-specific experience is relevant.

Plan for a change in leadership.

LO 8

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Training Leaders Leadership training is likely to be more successful with

high self-monitors. Teach implementation skills. Teach trust building, mentoring, and situational-

analysis. Behavioral training through modeling exercises can

increase an individual’s charismatic leadership qualities. Review leadership after key organizational events. Train in transformational leadership skills.

LO 8

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Implications for Managers

For management positions, hire candidates who exhibit transformational leadership qualities and who have demonstrated vision and charisma.

Tests and interviews can help you identify people with leadership qualities.

Hire candidates whom you believe are ethical and trustworthy for management roles and train current managers in your organization’s ethical standards in order to increase leadership effectiveness. 12-46


Implications for Managers

Seek to develop trusting relationships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replacing bureaucratic rules in defining expectations and relationships.

Consider investing in leadership training such as formal courses, workshops, rotating job responsibilities, coaching, and mentoring.

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copyright © 2015 pearson education, inc. 12-1. copyright © 2015 pearson education, inc. chapter...

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