Chapter 12 - Leadership

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Chapter 12 - Leadership ...

Chapter 12 - Leadership

    CHAPTER 12



Students have an intrinsic interest in leadership - they come into class wanting to know:

    1. “Do I have what it takes to be a leader?”

    2. “Are the people I know who are in leadership positions doing ? the right things?”

The problem is that when professors start talking about ―leadership theories,‖ students start to go to sleep.

    Your approach to solving this problem depends on your preferences for applied vs. laboratory research,

    but whichever you prefer; brush up on your storytelling skills!

    ? If your preference is applied research, emphasize leader traits and behaviors in your lecture. Get 1a copy of any of Kouzes’ and Posner’s books - they are crammed with examples and stories you

    can use to bring the criteria for being a leader to life. When discussing contingency theories of

    leadership, rather than talking about path-goal theory and the least-preferred coworker model,

    describe leaders such as Rudy Guiliani, who were seen as effective in certain circumstances, but

    not in others. Review research from the Center for Creative Leadership ( for

    additional information on the successful leadership strategies of corporate executives.

    ? If your preference is for laboratory research, the trick is to tell the students the story behind the

    research. For example, Fiedler’s work was influenced by a seminal review of the leadership 2literature published by Stogdill in 1948. In his work, Stogdill suggested that it was time to stop

    looking at the traits of leaders, and instead look at how they were affected by their situations.

    Some of Fiedler’s earliest work was with basketball teams - he asked basketball players to

    describe both the people on the team and those rejected from the team. The results of that study

    showed that when basketball players were able to describe the people rejected from the team in

    positive terms, the team was more effective overall.

    Teaching Tip: A day or two before you are scheduled to teach the leadership

    chapter, ask your students to respond to Discussion Question 7 in writing. The

    question reads “Who are your heroes? What makes them heroes, and what can TT you learn from them?” By reviewing this input before class, you can create

    examples that will be more meaningful to the class. This is especially important if

    you have a very diverse class, as student responses can be very interesting and

    unusual! In one recent class, students chose Billy Graham and Hugh Hefner as

    leaders, as well as a prime minister from Thailand and Guan Zi Zai, the Chinese

    name for the Bodhisattva Avalokitesvara.

     1 Kouzes and Posner, Credibility (Revised Edition), Jossey-Bass, 2003.

     Kousez and Posner, Encouraging the Heart, Jossey-Bass, 2003. rd Kouzes and Posner, The Leadership Challenge (3 Ed.), Jossey-Bass, 2003. 2 Stogdill, R. M., ―Personal factors associated with leadership: A survey of the literature.‖

     J Psychol, 1948, 25, 35-71.


Chapter 12 - Leadership




1. To examine your personal style of leadership.

    2. To study the nature of the leadership process.

    3. To identify ways to improve or modify your leadership style.

Suggested responses

Student responses will vary.

    1. I would allow team members the freedom to do their jobs in their own way. 3 2. I would make important decision on my own initiative without consulting the workers. 2 3. I would allow the team members to make their own decisions. 4 4. I would not try to socialize with the workers. 2 5. I would allow team members to do their jobs as they see fit. 4 6. I would consider myself to be the group’s spokesperson. 4 7. I would be warm, friendly, and approachable. 5 8. I would be sure that the workers understand and follow all the rules and regulations. 3 9. I would demonstrate a real concern for the workers’ welfare 5 10. I would be the one to decide what is to be done and how it is to be done. 1 11. I would delegate authority to the workers. 4 12. I would urge the workers to meet production quotas. 5 13. I would trust the workers to use good judgment in decision making. 5 14. I would assign specific tasks to specific people. 3 15. I would let the workers establish their own work pace. 3 16. I would not feel that I have to explain my decision to workers. 3 17. I would not try to make each worker feel that his or her contribution is important. 5 18. I would establish the work schedules. 3 19. I would encourage workers to get involved in setting work goals. 5 20. I would be action oriented and results oriented. 4 21. I would get the workers involved in making decisions. 5 22. I would outline needed changes and monitor action closely. 3 23. I would help the group achieve consensus on important changes. 5 24. I would supervise closely to ensure that standards are met. 3 25. I would consistently reinforce good work. 4 26. I would nip problems in the bud. 3 27. I would consult the group before making decisions. 5

Suggested Responses to Discussion Questions

1. In what ways did your experience or lack of experience influence your responses to the


    Experience will greatly influence survey responses.

2. In what ways did student scores and student responses to survey test items agree? In what

    ways did they disagree?

    Student scores and responses will vary based on shared experiences and views of leadership.

    Remember there is no one best way to lead; leadership will vary based on the given situation.


Chapter 12 - Leadership

    3. What do you think accounts for differences in student leadership attitudes.

    Leadership attitudes will vary based on their learned experiences and knowledge of leadership.

4. How can students make constructive use of the survey results?

    Students could make constructive use of the survey results based on one’s theoretical understanding

    of leadership.

    Teaching Tips:

    1. It is important to remind students that this survey measures only two of the TT many facets of leadership style.

    2. It is also important that students recognize that the application of a people

    orientation versus a task orientation is highly situational.

    3. The exercise results might be clearer to students after a review of the Ohio

    University studies, the University of Michigan studies, and the managerial




    Teaching Tip: The easiest way to get students interested in this case, is also

    the simplest - just give them the following information. On January 30, 1990, a

    single share of Berkshire Hathaway stock sold for $7,250 - an unbelievable sum TT

    of money. As of November 10, 2007, the same share of Berkshire Hathaway

    sold for $132, 210.00 - a gain of 1823 percent! Who is the person behind such

    an impressive investment feat? The Management Close-Up introduces him -

    Warren Buffett.



    A. Leadership can be taught - it involves skills ―possessed by a majority, but used by a minority.‖

    B. Leaders influence others to attain goals.

    C. Outstanding leaders combine good strategic substance with effective interpersonal processes.

    Example: Use student examples from prework assignment to illustrate



    Student Discussion Question 1: “What do you want from your leader?”



    Chapter 12 - Leadership



A. People want help in achieving their goals.

    B. Organizations need help in creating and implementing strategic direction

    C. Kouzes and Posner say that the best leaders:

    1. Challenge the process

    2. Inspire a shared vision

    3. Enable others to act

    4. Model the way

    5. Encourage the heart

    Example: In “The Leadership Challenge”, Kouzes and Posner tell the story of

    White’s, a car dealership in London. Faced with declining sales, Lindsey Levin

    had a vision - that every customer would have an amazing experience every time ?they interacted with the company. She inspired employees to share her vision by

    showing them videotaped focus groups with customers. As the employees

    recognized that customers weren’t satisfied, Levin asked them to talk about the

    changes they wanted to see, and implement those changes in small teams.

    Once the teams had some success with small projects, Levin encouraged them

    to move on to bigger projects. She made a commitment to training - ensuring

    that 10% of every employee’s time was dedicated to learning new things.

    Knowing that communication was the glue that would hold everything together,

    Levin kept going back to employees - getting their opinions, listening to what they

    had to say, and opening her heart to them. And Levin “walks the talk” - she acts

    the way she expects others to act - for example, sitting down with a new

    employee and showing him the ropes, and taking time out to personally thank

    people at every opportunity. She has set up a recognition program called “Going

    the Extra Mile” that rewards employees for doing something that helps to serve

    customers better. And she is constantly writing notes to thank employees when

    they’ve done something that creates more satisfied customers. In short, Lindsay

    Levin is an excellent example of all five of the leadership actions noted above.


A. A vision is a mental image of a possible and desirable future state of the organization.

B. Visions in action

    1. Visions can be small or large and exist throughout all organizational levels, as well as at the

    very top.

    2. A vision is necessary for effective leadership.

    3. A person or team can develop a vision for any job, work unit, or organization.

    4. Many people, including managers who do not develop into strong leaders, do not develop a

    clear vision they focus on performing or surviving on a day-to-day basis.


Chapter 12 - Leadership

    Example: On October 8, 2007, PRWeek published an article entitled, “When it 3comes to persuasion, leaders should follow Moses.” Now this may seem odd

    for a modern business magazine, but as Fred Bratman points out, “But Moses

     successfully demonstrates the key skills of persuasion. His primary tools are ?words - though that staff he carries around is impressive - and he uses them to

    create a compelling vision of the future, especially when talking to the Israelites.

    He promises them "a land of milk and honey" to convince them that leaving

    Egypt is a big step up from their enslavement, though hardship lies ahead. He is

    extremely credible, as he not only returned to Egypt after winning his own

    freedom, but he also turned down a life of comfort offered to him by the Pharaoh.

    Finally, Moses was one of them, not some outsider telling them what was best for

    them. They never had to question his commitment.


    Student Discussion Question 2: “Is there a difference between effective

    management and effective leadership? Explain your views and learn from ? others’ views.”

A. Supervisory leadership is behavior that provides guidance, support, and corrective feedback for

    the day-to-day activities of work unit members.

B. Strategic leadership gives purpose and meaning to organizations.


A. Organizations succeed or fail not only because of how well they are led but also because of how

    well followers follow.

B. The most effective followers are capable of:

    1. Independent thinking.

    2. Actively committed to organizational goals.

C. Effective followers are distinguished from ineffective ones by their enthusiasm and commitment to

    the organization and to a person or purpose an idea, a product other than themselves or their

    own interests.


A. Sources of power. (Figure 12.1)

    1. Legitimate power is where the leader has the right, or authority to tell others what to do;

    employees are obligated to comply with legitimate orders.

    2. Reward power is where the leader influences others because she or he controls valued

    rewards; people comply with the leader’s wishes in order to receive those rewards.

    3. Coercive power is where the leader has control over punishments; people comply to avoid

    those punishments.

     3 Bratman, Fred. When it comes to persuasion, leaders should follow Moses. PRweek. (U.S. ed.). New

    York: Oct 8, 2007. Vol. 10, Iss. 39; pg. 9.


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    4. Referent power is where the leader has personal characteristics that appeal to others; people

    comply because of admiration, a desire for approval, personal liking, or a desire to be like the


    5. Expert power is where the leader has certain expertise or knowledge; people comply

    because they believe in, can learn from, or can otherwise gain from that expertise.

    Example: Events in Pakistan in late 2007, throw different types of leadership

    power into sharp relief. Pakistani President Pervez Musharraf reacted to

    opposition by using coercive power - suspending the constitution, firing more

     than half of the Supreme Court, jailing opposition leaders, and shutting down the ?media. At the same time, he was relying on legitimate power to support his

    actions - as both President and Commander in Chief, he felt immune to 4censorship.

    Student Question 1: “How can I influence people when I don’t have any

    legitimate power?”

    Management Close-Up Questions: “Warren Buffett has a great deal of ? legitimate power. What other types of power does he have? Why do you think

    so?” and “How applicable are the leadership skills of business leaders like

    Warren Buffet and Bill Gates to the nonprofit world of charitable foundations?


    ? Objectives

    1. To explore the nature of power and influence and your attitudes toward different

    kinds of power and influence.

    Suggested responses

    A. Power

    Winning is everything. 5

    Nice guys finish last 5

    There can only be one winner. 3

    There’s a sucker born every minute. 1

    You can’t completely trust anyone. 3

    All power rests at the end of the gun. 5

    Power seekers are greedy and can’t be trusted. 3

    Power corrupts; absolute power corrupts absolutely. 1

    You get as much power as you pay for. 1

    B. Influence

    Student responses will vary based on the social power influence one had in their

    communication with the individual. The social power bases listed as a positive

    effect as a result of the interaction between the two individuals.

    C. Power and Influence

    Student responses will vary based on the experiences derived. Some will have

    more positive outcomes, and some will have more negative outcomes.

     4 Mufti, S., Sappenfield, M. ―Emergency rule in Pakistan: Musharraf’s last grab for power?‖ The Christian

    Science Monitor. Nov. 5, 2007, pg. 1.


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    Teaching Tip: This exercise requires a good deal of thought, and it may be

    useful to have students complete the written portion of the exercise prior to

    coming to class. However, it is also very helpful for students to compare their TT answers so they can see how other people respond to influence attempts. For

    this reason, even if the exercise is completed outside of class, put the students in

    small groups to discuss their responses during class. Have them agree as a

    group which styles of influence seem to be most effective, and why, then report

    their findings to the class.


    Student Discussion Question 3: “Identify someone you think is an effective

    leader. What traits and skills does this person possess that make him or her ? effective?”

    A. Leader traits the trait approach is the oldest leadership perspective and was dominant for

    several decades. The perspective is that some personality characteristics many of which a

    person need not be born with but can strive to acquire distinguish effective leaders from other


1. Drive, which refers to a set of characteristics that reflect a high level of effort. It includes high

    need for achievement, constant striving for improvement, ambition, energy, tenacity

    (persistence in the face of obstacles), and initiative.

    2. Leadership motivation great leaders not only have drive, they want to lead.

    3. Integrity is the correspondence between actions and words. Honesty and credibility are

    especially important.

    4. Self-confidence is important because the leadership role is challenging, and setbacks are


    5. Knowledge of the business, industry, company, and technical matters.

    6. The most important personal skill, according to the text, the ability to perceive the needs and

    goals of others and to adjust one’s personal leadership approaches accordingly.

    Student Question 2: “If you have to have certain traits to be a leader, how can

    ? you say that people can learn to be leaders?”

    Example: Dell CEO Kevin Rollins says that most leadership biographies are

    either “How I Made Money” or “How I Became a Leader.” Rollins found that he

     wasn’t interested in such tomes, and instead he got his education on how to be a ?leader from the Founding Fathers of the United States. According to Rollins,

    Aaron Burr was a genial man, whose style was to flatter people, while Alexander

    Hamilton was analytical, but cold. It was George Washington who had the style

    Rollins hoped to mimic. "Washington would often tell people something about

    themselves they didn't know, and would inspire them to greatness in a very

    genuine way through his observations and through the respect they had for him

    as an individual," Rollins says. He earned that respect through dedication to a

    cause beyond his own benefit, even accepting a "demotion" to general of the 5nation's armies after two terms as president and commander-in-chief.”

     5 Nielsen, Chad D. ―Chief of Dell.‖ Marriott Alumni Magazine, Fall 2004. Retrieved from, August 2005.


    Chapter 12 - Leadership



    A. Leadership behaviors the behavioral approach attempts to identify what good leaders do. Three

    general categories of leadership behavior are: (Figure 12.2)

    1. Task performance behaviors are the leader’s efforts to insure that the work unit or

    organization reaches its goals.

    a. This dimension is sometimes referred to as:

    (1) concern for production

    (2) directive leadership

    (3) initiating structure or closeness of supervision.

    b. It includes a focus on:

    (1) work speed

    (2) quality and accuracy

    (3) quantity of output

    (4) following the rules.

    2. Group maintenance behaviors is where leaders take action to ensure the satisfaction of

    group members, develop and maintain harmonious work relationships, and preserve the

    social stability of the group.

    a. This dimension is sometimes referred to as:

    (1) concern for people

    (2) supportive leadership

    (3) consideration.

    b. Leader-Member Exchange (LMX) theory highlights the importance of leader behaviors

    not just toward the group as a whole but also toward individuals on a personal basis.

3. Participation in decision-making dimension of leadership behavior can range from autocratic

    to democratic.

    a. Autocratic leadership makes decisions and then announces them to the group.

    b. Democratic leadership solicits input from others.

    Student Question 3: “Is there one best style of leadership?”


    B. The effects of leader behavior

1. Decision styles

    a. Autocratic style resulted in somewhat higher performance.

    b. Democratic style resulted in the most positive attitudes.

    c. Laissez-faire style is a philosophy characterized by an absence of managerial decision-


    2. Performance and maintenance behaviors

    a. Ohio State studies found supervisors who were high on maintenance behaviors (which

    the researchers termed consideration) had fewer grievances and less turnover in their

    work units than supervisors who were low on this dimension.

    b. Ohio State studies found the opposite for task performance behaviors (which the team

    called initiating structure). Supervisors high on this dimension had more grievances and

    higher turnover rates.

    c. An equally famous research program at the University of Michigan concluded that the

    most effective managers engaged in what they called task-oriented behavior; planning,

    scheduling, coordinating, providing resources, and setting performance goals.


    Chapter 12 - Leadership



    A. Leadership perspective proposing that universally important traits and behaviors do not exist, and

    that effective leadership behavior varies from situation to situation.

1. The Vroom model follows in the tradition of Tannenbaum and Schmidt. It is a situational

    model of leadership that focuses on how leaders go about making decisions. (Figure 12.3)

    Student Discussion Question 10: “Consider a couple of decisions you are

    facing that could involve other people. Use the Vroom model to decide what ? approach to use to make the decisions.”

    2. Fiedler’s Contingency Model

    Fiedler’s contingency model of leadership effectiveness states that effectiveness depends on

    two factors: the personal style of the leader and the degree of which the situation gives the

    leader power, control, and influence over the situation. (Figure 12.4)

    a. Fiedler considered two leadership styles:

    i. Task-motivated leadership, which places primary emphasis on completing the

    task and is more likely, exhibited by leaders with low LPC scores.

    ii. Relationship-motivated leadership emphasizes maintaining good interpersonal

    relationships and is more likely from high-LPC leaders.

    b. B Fiedler’s theory is supported if three broad rather than eight specific levels of

    situational control are assumed:

    i. Low

    ii. Medium

    iii. High

3. Hersey And Blanchard’s Situational Theory

    a. Situational theory highlights the maturity of the followers as the key situational factor.

    b. Job maturity is the level of the follower’s skills and technical knowledge relative to the

    task being performed.

    c. Psychological maturity is the follower’s self-confidence and self-respect.

4. Path-goal theory is a theory that concerns how leaders influence subordinates’ perceptions of

    their work goals and the paths they follow toward attainment of those goals. (Figure 12.5)

    a. Key situational factors in path-goal theory are:

    (1) personal characteristics of followers

    (2) environmental pressures and demands with which followers must cope to attain there

    work goals.

    b. Four pertinent leadership behaviors are:

    (1) directive leadership, a form of maintenance-oriented behavior

    (2) supportive leadership, a form of group maintenance-oriented behavior

    (3) participative leadership, or decision style

    (4) achievement-oriented leadership or behaviors geared toward motivating people, such

    a setting challenging goals and rewarding good performance


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    Student Question 4: “Many of the theories of leadership that we are discussing

    suggest doing different things in different situations. But if you do that, won’t you

    be perceived as being unfair or inconsistent?” ?

5. Substitutes for leadership factors in the workplace that can exert the same influence on

    employees that leaders would provide.

    Student Discussion Question 11: “Consider a job you hold or held in the past.

    Consider how your boss managed you. How would you describe him or her as a

    leader? What substitutes for leadership would you have enjoyed seeing put into ? place?”


    A. Charismatic leadership a person who is dominant, self-confident, convinced of the moral

    righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in


    Student Question 5: “How do good leaders gain charisma?”


    B. Transformational leadership a leader who transforms a vision into reality and motivates people

    to transcend their personal interests for the good of the group.

1. Transactional leaders management through business transactions in which leaders use

    their legitimate, reward, and coercive powers to give commands and exchange rewards for

    services rendered.

    2. Generating excitement by

    a. being charismatic

    b. giving individual attention

    c. being intellectually stimulating.

    3. Skills and strategies that contribute to transformational leadership are:

    a. leaders have a vision

    b. leaders communicate their vision through words, manner, or symbolism

    c. leaders build trust by being consistent, dependable, and persistent

    d. leaders have a positive self-regard.

    4. Transforming leaders

    a. Level 5 leadership - a combination of determination and personal humility that builds

    enduring greatness.

    b. Level 5 leaders exhibit both transformational and transactional skills

    Student Discussion Question 12: “Consider an organization of which you are a

    leader or a member. What could great transformational leadership accomplish in

    ? the organization?”

    Student Discussion Question 4: “Do you think most managers can be

    transformational leaders? Why or why not?”


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