Chapter 14

Leadership

MGMT6
2014 Cengage Learning

Lesson Objectives
At the end of the lesson, the students will be
able
to:
1. Explain
what leadership is
2. Describe who leaders are and what effective leaders do
3. Explain Fiedlers contingency theory
4. Describe how path-goal theory works
5. Explain the normative decision theory
6. Explain how visionary leadership (i.e., charismatic or
transformational leadership) helps leaders achieve
strategic leadership
2014 Cengage Learning

Leaders

vs.

Managers

Doing the right thing

Doing things right

What should we be doing?

How can we do what were

already doing better?

Vision, mission, goals, objectives

Challenge the status quo

Long-term view

Expand peoples options and

choices

Inspire and motivate people to

find their own solutions
Concerned with ends, what gets
done

Productivity and efficiency

Preservers of status quo
Short-term view
Limit others choices
Sole problems so that
others can do their work
More concerned with
means, how things get done
2014 Cengage Learning

Leadership Traits

Trait theory (the great person theory

effective leaders possess a similar set of traits or
characteristics
Traits are relatively stable characteristics, i.e. abilities,
psychological motives, or constant patterns of behaviors

Leaders are different from followers in:

Drive - high levels of effort (characterized by achievement,
motivation, initiative, energy, and tenacity)
strong desire to lead
honest/integrity
self-confidence
emotional stability
cognitive ability
knowledge of the business

14-2

2014 Cengage Learning

Leadership Behaviors

Initiating structure - degree to which a leader structures the

roles of followers by:

setting goals,
giving directions,
setting deadlines,
and assigning tasks.

Leaders ability to initiate structure primarily affects

subordinates job performance.

Consideration - the extent to which a leader is:

friendly,
approachable,
supportive
and shows concern for employees.

Consideration primarily affects subordinates job

satisfaction

2014 Cengage Learning

14-2

 2014 Cengage Learning

14-2

BREAK

Fiedlers Contingency Theory

In order to maximize work group performance, leaders must
be matched to the right leadership situation.
Leaders are effective when the work group they lead performs
well.
Leaders are generally unable to change their leadership
styles, and they will be more effective when their styles are
matched to the proper situation.
The favorableness of a situation permits the leader to
influence the behavior of group members.

2014 Cengage Learning

14-3

Least Preferred Coworker

Leadership style = the way that leaders generally

behave toward their followers.

Leadership styles are tied to leaders underlying

needs and personalities.

Relationship-oriented scores of 64 and above

Task-oriented - scores of 57 and below

2014 Cengage Learning

14-3

Situational Favorableness
The degree to which a particular situation either permits or
denies a leader the chance to influence the behavior of group
members.
Leader-member relations - how well followers respect, trust,
and like their leaders
Task structure - the degree to which the requirements of a
subordinates tasks are clearly specified

for highly structured tasks, employees have clear job

responsibilities, goals, and procedures

Position power - the degree to which leaders are able to hire,

fire, reward, and punish workers
The more influence leaders have over hiring, firing, rewards,
2014 Cengage Learning
14-3
and punishments, the greater their power.

leader-member relations, task structure, and position power can be

combined into eight situations that differ in their favorability to leaders

2014 Cengage Learning

14-3

 2014 Cengage Learning

14-3

Leaders and Situations

Fiedler assumes leaders to be incapable of changing

their leadership styles.

The key matching leaders to situations

or teaching leaders how to change situational

favorableness

2014 Cengage Learning

14-3

Path-Goal Theory
Leaders can increase subordinate satisfaction and
performance by clarifying and clearing the
paths to goals and by increasing the number
and kinds of rewards available for goal
attainment.

2014 Cengage Learning

14-4

 2014 Cengage Learning

14-4

Leadership Styles
Directive
Supportive
Participative
Achievement-oriented

2014 Cengage Learning

14-4

Subordinate Contingencies

Perceived ability

Experience

Locus of control
internals vs. externals

14-4

2014 Cengage Learning

Environmental Contingencies

Task structure

Formal authority system

Primary work group

2014 Cengage Learning

14-4

 2014 Cengage Learning

14-4

BREAK

Normative Decision Theory

Vroom-Yetton-Jago Model
Helps leaders decide how much employee participation
(from none to letting employees make the entire decision)
should be used when making decisions.
Components of a leaders decision are:
Quality of decision
The level of buy-in associated with the decision
Managers want to achieve both

The Normative Decision Theory holds that the right

degree of employee participation improves quality of
decisions and commitment of employees to the decision
(decision buy-in).
2014 Cengage Learning

14-5

autocratic decisions (AI or

AII)

consultative decisions (CI or

CII)

2014 Cengage Learning

group decisions
(GII)

14-5

 2014 Cengage Learning

14-5

Visionary Leadership
Creates a positive image of the future that motivates
organizational members and provides direction for future
planning and goal setting.
Strategic leadership is ability to anticipate, envision,
maintain and work with others to initiate changes that will
create positive future for the organization(Williams 2016, p305)
- Captures how leaders influence their followers to put more
effort towards attainment of organizational goals.
- Visionary leadership motivates followers
direction for future planning goal setting

and

provides

- 2 types of visionary leadership:

-

Charismatic leadership
Transformational leadership
2014 Cengage Learning

14-6

Charismatic Leadership
Charismatic leaders have strong, confident, dynamic personalities
attract followers & facilitates bonding between leaders and followers
Charismatic leadership is defined as The behavioral tendencies and
personal characteristics of leaders that create an exceptionally
strong relationship with followers.
Charismatic leaders:
Articulate a clear vision for the future that is based on strongly held values or
morals
Model those values by acting in a way consistent with the vision
Communicate high performance expectations to followers
Display confidence in followers abilities to achieve the vision

TATA example?
Local Example - www.sundaystandard.info/ khama-charismaticleader May 20, 2007

14-6

 2014 Cengage Learning

14-6

Transformational Leadership
Generates awareness and acceptance of a groups
purpose and mission and gets employees to see
beyond their own needs and self interests for the good
of the group.
Transformational leaders transform their organizations
by getting their followers to accomplish more than they
intended and even more than they thought possible.

2014 Cengage Learning

14-6

Components of Transformational Leadership

Charismatic leadership or idealized influence

Inspirational motivation

motivate and inspire followers by providing meaning and challenge to their work

clearly communicating expectations and demonstrating commitment to goals,

transformational leaders help followers envision the future, as one must to do
from the organizational vision or mission

Intellectual stimulation

put others needs ahead of their own and share risks with their followers, they
are admired, respected, and trusted, and followers want to emulate them

encourage followers to be creative and innovative, to question assumptions,

and to look at problems and situations in new ways even if their ideas are
different from the leaders

Individualized consideration

pay special attention to followers individual needs by creating learning

opportunities, accepting and tolerating individual differences, encouraging twoway communication, and being good listeners

14-6

Transactional Leadership
Based on an exchange process in which followers are
rewarded for good performance and punished for poor
performance.
Fair award of rewards and rewards that are
commensurate with the followers wants lead to effort
This is not effective in the long run

2014 Cengage Learning

14-6

Camp Bow Wow

1. Does Camp Bow Wow CEO
Heidi Ganahl possess
qualities associated with
contemporary leadership?
2. In what way is Heidi Ganahls
leadership charismatic and
visionary? Give examples.

<click screenshot for video>

3. Where does Heidi Ganahls

leadership fall on the Leadership Grid discussed in the
chapter? Explain.

2014 Cengage Learning