CHAPTER 1The Nature and Importance of LeadershipThe introductory chapter has several important purposes. Readers are given a detailed description ofthe meaning of leadership. Although most readers have studied something about leadership, most canbenefit from a refresher and an update. Another important purpose of the chapter is to explain thevarious leadership (not management) roles and the various rewards and frustrations contained inthose roles. Finally, this chapter presents a framework and model for understanding leadership andexplains how leadership skills are developed.CHAPTER OUTLINE AND LECTURE NOTES I.THE MEANING OF LEADERSHIP To be a leader, one has to make a difference and facilitate positive changes. Leaders inspire and stimulate others to achieve worthwhile goals. A useful definition of leadership is the ability to inspire confidence and support among the people who are needed to achieve organizational goals. A. Leadership as a Partnership A current perspective on leadership is that it constitutes a partnership, being connected to another in such a way that the power between the two is approximately balanced. Partnership occurs when control shifts from the leader to the group member. According to Peter Block, a partnership involves (a) an exchange of purpose, (b) the right to say no, (c) joint accountability, and (d) absolute accountability. A closely related idea is stewardship theory that depicts group members (or followers) as being collectivists, pro- organizational, and trustworthy. B. Leadership Versus Management Leadership is but one of the four major functions of management (planning, organizing, controlling, and leading). Current thinking emphasizes that leadership deals with change, inspiration, motivation, and influence. In contrast, management deals more with maintaining equilibrium and the status quo. Table 1–1 summarizes these differences. Locke simplifies matters by stating that the leader creates a vision, and the manager implements it. Despite these distinctions, organizational leaders must still be good managers, and effective managers must also carry out leadership activities.
II. THE IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE An important justification for studying leadership is that leaders affect organizational performance. Many faltering business firms and athletic teams bring in a new top leader to spearhead a turnaround. A. Research and Opinion: Leadership Does Make a Difference A smattering of evidence supports the contention that leadership affects organizational performance. A team of researchers investigated the impact of transactional (routine) and charismatic (inspirational) leadership on financial performance, as measured by net profit margin. They found that transactional leadership was not related to performance, and that charismatic leadership was most strongly related to performance in an uncertain environment. A case example is that Allen Questrom achieved some good results in attempting to turn around a poorly performing J.C. Penney. Whether or not leaders do make a difference, organization members perceive that they do, as suggested by attribution theory, the process of attributing causality to events. B. Research and Opinion: Formal Leadership Does Not Make aDifference According to the antileadership argument, leadership has a smaller impact on organizational outcomes than do situational forces. 1. Substitutes for Leadership. One viewpoint is that many organizations contain substitutes for leadership, factors in the work environment that provide guidance and incentives to perform, making the leader’s role almost superfluous. These substitutes for the leader and the leadership function include closely knit teams of highly trained individuals, intrinsic satisfaction, computer technology (monitoring of work by computer), and professional norms. Jim Collins, author of Good to Great, believes that corporate leaders are slaves of much larger forces. He concludes that Jack Welch was the product rather than the producer of General Electric’s success during his long reign. 2. Leader Irrelevance. Pfeffer argues that leadership is irrelevant to most organizational outcomes because factors outside the leader’s control are important. Part of the argument is that leaders have limited control over resources, and that top leaders whose values are compatible with those of the firm are chosen. We believe strongly that despite these constraints leaders still have key roles. 3. Complexity Theory. This theory holds that organizations are complex systems that cannot be explained by the usual rules of nature. Leaders and managers can do little to alter the course of the complex organizational system. III. LEADERSHIP ROLES Understanding leadership roles helps explain leadership. A role is an expected set of activities or behaviors stemming from the job. The nine leadership roles covered here are: 1. Figurehead (ceremonial activities). 2. Spokesperson (keeping key groups informed about the activities of the organization or organizational unit). 3. Negotiator (making deals with others for needed resources).
4. Coach and motivator (recognizing achievement, giving feedback, and giving suggestions for performance improvement). 5. Team builder (building an effective team). 6. Team player (being a good team member oneself). 7. Technical problem solver (advising others on solving problems and being an individual contributor). 8. Entrepreneur (suggesting innovative ideas and furthering the business). 9. Strategic planner (setting a direction for the organization, helping the firm deal with the external environment, and policy setting). An important implication of these roles is that managers at all levels can and should exert leadership. IV. THE SATISFACTIONS AND FRUSTRATIONS OF BEING A LEADER Being a leader offers many joys but also some frustrations. Because most readers of this book aspire toward leadership positions or currently occupy such a position, this information allows for meaningful class discussion. A. Satisfactions of Leaders The specific satisfactions of leaders are somewhat a function of the leadership position. Nevertheless, here is a list of satisfactions that may be present in varying degrees in many leadership situations: 1. A feeling of power and prestige. 2. A chance to help others grow and develop. 3. High income. 4. Respect and status. 5. Good opportunities for advancement. 6. A feeling of “being in on” things. 7. An opportunity to control money and other resources. B. Dissatisfactions and Frustrations of Leaders Despite the glory of being a leader, occupying a leadership or management role has many built-in potential frustrations: 1. Too much uncompensated overtime. 2. Too many “headaches.” 3. Not enough authority to carry out responsibility. 4. Loneliness (being a leader limits the number of people onecan confide in). 5. Too many problems involving people. 6. Too much organizational politics. 7. The pursuit of conflicting goals (the central theme of these dilemmas is attempting to grant others the authority to act independently, yet still get them aligned). V. A FRAMEWORK FOR UNDERSTANDING LEADERSHIP Certain major sets of variables influence leadership effectiveness. The basic assumption underlying the framework is as follows: L = f (l, gm, s)
This formula means that the leadership process is a function of the leader, the group members, and other situational variables. The model presented in Figure 1–2 extends the situational perspective. The model states that leadership effectiveness can best be understood by examining its key variables: leader characteristics and traits, leader behavior and style, group member characteristics, and the internal and external environment. The four sets of variables are interrelated, with some linkages stronger than others. An example of a strong link is that leader characteristics and traits affect leader behavior and styles. VI. SKILL DEVELOPMENT IN LEADERSHIP Leadership skills are in high demand. Developing leadership skills is more complex than developing a structured skill, yet these skills can be developed by following a general learning model: 1. Conceptual knowledge and behavioral guidelines. 2. Conceptual information demonstrated by examples and briefdescriptions of leaders in action. 3. Experiential exercises. Cases, role plays, and self-assessmentquizzes are included here. 4. Feedback on skill utilization, or performance, from others.Implementing some of the skills outside the classroom will provide opportunities for feedback. 5. Practice in natural settings. A given skill has to be practiced manytimes in natural settings before it becomes integrated comfortably into a leader’smode of operation. VII. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT Although the thousands of leadership studies published often conflict, the discipline of leadership offers much useful information. The approach recommended here for applying leadership information is to choose the formulation that seems to best fit the leadership situation at hand. For example, a leader might need to combine creative problem solving and emotional support to members to help the team rebound from a crisis.COMMENTS ON EXPERIENTIAL EXERCISESLeadership Self-Assessment Quiz 1-1: Readiness for the Leadership RoleThe first self-examination exercise in the text has considerable face validity. The student reflects on aseries of attitudes and behaviors that are part of the leadership role. An intended byproduct of thisexercise is that people may have to develop a more positive attitude toward key aspects of a leader’sjob if they are to become effective leaders. Like most of the instruments in the text, the Readiness for the Leadership Role quiz is intendedfor self-reflection and possibly for research. Such quizzes should not be interpreted as validatedpsychological instruments.
Leadership Skill-Building Exercise 1-1: Identifying Leadership RolesStudents usually cover the full gamut of roles in this type of exercise, thus prompting a practical view ofleadership roles. Several examples of this role analysis follow: (1) Questrom repeats vision, indicatingthe strategic planner role; (2) “A business isn’t run by one person. It’s run by teams,” suggesting theteam builder and team player roles; (3) the veteran retailer has been charming employees, customers,and creditors for years, perhaps indicating the coach and motivator roles; (4) trying to get back toPenney’s roots as a department store of choice for middle-income Americans, indicating the strategicplanner role; (5) plan to centralize purchasing could be classified as the direction-setting aspect of thestrategic planner role; and (6) the only way to boost morale is to start making money again, suggestingthe coach and motivator role.Leadership Skill-Building Exercise 1-2: What It Takes to Be a LeaderAn insight to be gleaned from this exercise and similar ones in the text is that an important part ofleadership skill building is to try out new ideas one at a time, and then observe any difference inimpact.COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES 1. What would be several practical problems stemming from the idea that the leader creates a vision, whereas the manager implements it? One practical problem with this dichotomy is that the leader would appear to be making a contribution only when he or she spells out a vision. At other times the leader should be spending time gathering information to formulate a vision. 2. In recent years there have been dozens of financial scandals involving business executives (such as the problems at Enron and Global Crossing). What impact has this information had on your interest in becoming, or remaining, a leader in a business setting? Many students may still be interested in pursuing a leadership career in business for such varied reasons as (a) just a handful of crooked CEOs have been involved in the scandals, (b) good opportunities await an honest leader, and (c) “I never realized you could make so much money as an executive, so deal me in.” 3. Give an example of how you have exerted leadership on or off the job in a situation in which you did not have a formal leadership position. Explain why you describe your activity as leadership. Relevant examples here center on taking the initiative to accomplish something important, and involving others in the activity. Examples include starting an employee network group, a recycling campaign, an employee or student study group, or organizing a field trip. Both the initiative aspect and influencing others indicate the exercise of leadership. 4. What would a boss of yours have to do to demonstrate that he or she is an effective leader and an effective manager? To demonstrate effectiveness as a leader and manager, the boss should engage in such activities as inspiring group members, creating a useful vision, bringing about constructive change, and maintaining a well-organized department.
5. Identify a business or sports leader who you think is highly effective. Present your observations to the class. Leaders are usually classified as effective on the basis of the results they achieve. Students will therefore probably choose leaders with highly visible accomplishments. Effective sports leaders would include Phil Jackson (now the Los Angeles Lakers head coach) and Pat Summit (the Tennessee Lady Vols basketball coach). Despite mixed reactions to his personality, many students will nominate Bill Gates of Microsoft. Jeff Bezos of Amazon.com might also receive several nominations because of his key position in launching ecommerce. 6. Based on an informal survey, many people who were voted “the most likely to succeed” in their high school yearbooks became leaders later on in their career. How can you explain this finding? Many basic leadership traits and behaviors are formed early in life and persist throughout adulthood. Among these characteristics are extroversion, enthusiasm, drive, and a willingness to assume responsibility. 7. Martha Stewart is an inspiration to millions of people, yet at the same time she is criticized by many for her strong ambition and her controlling, perfectionist tendencies. She is even the subject of many jokes. What does this contradictory information tell you about leadership? The mixed reactions visible leaders receive indicates the concept of leadership polarity (see Chapter 3) whereby leaders are adored by some constituents and disliked by others. Or, simply put, being a disliked leader “comes with the territory.” The variety of attitudes toward Martha Stewart also suggest that being exceptionally successful triggers envy and resentment. 8. After reading this chapter, do you believe that a person who is not a “born leader” still has a good chance of becoming an effective leader? Explain. We hope that all potential leaders would realize that many of the characteristics, attitudes, behaviors, and skills of leaders can be learned. Even without great inherited talent, a person could therefore accomplish many of the things that effective leaders accomplish. 9. Top-level leaders of major business corporations received some of the highest compensation packages in the workforce. Why are business leaders paid so much? One reason for the higher pay of leaders is that their work affects so many people, thus giving their job greater scope. Another factor is that leadership is a rare talent, and takes longer to develop than technical skill. For example, a highly talented teenager may learn how to install a web site in several days but could not learn how to be a top-level corporate leader in such a short time period. (Many critics think top executives are vastly overpaid in comparison to lower-ranking workers who also make an important contribution to corporate performance.)10. Which of the nine leadership roles do you think you are the most suited for at this stage in your career? Explain your reasoning. During early career stages most people are best suited for the technical problem-solver role. The reason is that most careers begin by engaging in a technical specialty. Another possible leadership role for many career beginners is the team player role, also based on experience. Many students taking a leadership course may have enough leadership and management experience to be well suited for other leadership roles.
PLAUSIBLE RESPONSES TO CASE QUESTIONSLeadership Case Problem A: Big Jeff Immelt Faces the Future at GEA major theme of this introductory case is the complexity and demanding nature of a top-levelexecutive position. 1. What leadership challenges does Immelt face? First, Immelt must establish a strong presence to think of himself primarily as Jeff Immelt rather than as the replacement for Jack Welch. The public criticism that surfaced in 2002 about Welch’s hidden forms of compensation during both his reign and his retirement may have helped Immelt. Replacing a tarnished image beats replacing a superhero. Another major challenge is maintaining growth in profits more through operations than acquisitions and creative forms of accounting. Another challenge is to spearhead a drive for efficiency in an already efficient company. 2. What can Immelt and the rest of the executive team do to convince financial analysts that GE is truthful about its earnings? A key antidote would be more disclosure of how earnings were obtained, and to become more of a transparent organization. Immelt might make the dramatic move of inviting an audit of GE’s books by an auditor chosen by financial analysts or journalists. A complete audit would be prohibitive in cost, but perhaps the auditor’s report could be audited. 3. Which leadership roles does Immelt appear to be emphasizing? Immelt was somewhat of a figurehead in his early days, as he crisscrossed the globe to meet stakeholders and transfer relationships to himself. He occupied the strategic planner role when he pushed the firm more into services. Immelt was somewhat of a technical problem solver as he explained to outsiders that he is not an earnings cheat. In dealing with outsiders over the accounting issues, Immelt was a spokesperson.Leadership Case Problem B: Jen Lee Wants the Fast TrackThe case history of the young business analyst illustrates that rising into a formal leadership position ina complex organization can be challenging. 1. Who has the problem here? Jen or the consulting firm in question? Jen has more of a problem than does the consulting firm because she appears to believe that she is entitled to becoming a formal leader, based on her assessment of her credentials. 2. What advice can you offer Jen to help her increase her chances of occupying a formal leadership position in the company? Jen must continue to take the initiative on important work issues, and look for ways to demonstrate that she can influence people. In dealing with clients, she might look for ways to
increase the services of the firm because developing business is a major success factor in a consulting firm. She might also volunteer to serve on committees and task forces within the firm.3. What is your evaluation of the advice Ken offered Jen? Ken’s advice is sound. In a competitive situation when leadership positions are scarce, a person has to demonstrate her leadership capability before being promoted.
CHAPTER 2Traits, Motives, and Characteristics of LeadersThe purpose of this chapter is to present a comprehensive description of the personal qualities ofleaders. Such a presentation does not imply that the great person theory is more valid or importantthan other explanations of leadership. Nevertheless, “having the right stuff” contributes to leadershipeffectiveness in many situations.CHAPTER OUTLINE AND LECTURE NOTESThe belief that certain personal characteristics and skills contribute to leadership effectiveness in manysituations is the universal theory of leadership. Old as well as new research concludes convincinglythat effective leaders are made of the right stuff. A current presentation of this research is TheEssence of Leadership by Locke. I. PERSONALITY TRAITS OF EFFECTIVE LEADERS Possessing certain characteristics contributes to leadership effectiveness in many situations as long as the leader’s style fits the situation reasonably well. A. General Personality Traits A general personality trait in the context used here is a trait that would be observable within or outside the context of work. The same general traits are related to success and satisfaction in both work and personal life. 1. Self-Confidence. In almost every leadership setting, it is important for the leader to be realistically self-confident. Self-confidence is akin to being cool under pressure. 2. Humility. Being humble at the right times also contributes to leadership effectiveness. Part of humility is admitting that you don’t know everything, and admitting your mistakes to team members and outsiders. According to Jim Collins, Level 5 Leaders are modest, yet determined to achieve their objectives. Trustworthiness. Group members consistently believe that leaders must display honesty, integrity, and credibility, thus engendering trust. Leaders themselves believe that honesty makes a difference in their effectiveness. The popular cliché, “Leaders must walk the talk,” holds true. Also helpful is telling the truth and conducting yourself in the way that you ask others to conduct themselves. 4. Extroversion. Being extroverted contributes to leadership effectiveness, and extroverts are more likely to want to assume a leadership role and participate in group activities.
5. Assertiveness. Assertiveness refers to being forthright in expressing demands, opinions, feelings, and attitudes. Being assertive helps leaders perform tasks such as confronting group members, demanding higher performance, and making legitimate demands on higher management. 6. Emotional Stability. Emotional stability refers to the ability to control one’s emotions sufficiently that one’s emotional responses are appropriate to the occasion. Stability helps because group members expect and need consistency in the way they are treated. 7. Enthusiasm. Group members respond positively to enthusiasm, partly because enthusiasm may be perceived as a reward for constructive behavior. Enthusiasm also helps build good relationships with team members. 8. Sense of Humor. The effective use of humor is considered an important part of a leader’s role. Humor helps dissolve tension and defuse conflict. Self- effacing humor is the choice of comedians and organizational members alike. 9. Warmth. Warmth, which facilitates the establishment of rapport with group members, is a key component of charisma, and it facilitates providing emotional support. 10. High Tolerance for Frustration. Leaders encounter so many frustrations that they need high tolerance for frustration, or the ability to cope with the blocking of goal attainment. B. Task-Related Personality Traits Certain personality traits of effective leaders are closely associated with taskaccomplishment even though they appear to be more accurately classified as traits than asbehavior. 1. Passion for the Work and the People. A dominant characteristic of effective leaders is their passion for their work, and to some extent for the people who help them accomplish the work. Passion for the work is especially evident in entrepreneurial leaders and small-business owners who are preoccupied with growing their business. Being passionate about the nature of the business can be a major success factor in its survival. 2. Emotional Intelligence. How well a person manages his or her emotions and those of others influences leadership effectiveness. Emotional intelligence refers to qualities such as understanding one’s feelings, empathy for others, and the regulation of emotions to enhance living. Four key factors are included in emotional intelligence, according to a recent conception: (1) self-awareness helps you understand your impact on others; (2) self-management is the ability to control one’s emotions and act with honesty and integrity in a consistent and adaptable manner; (3) social awareness includes having empathy for others and having intuition about organizational problems; (4) relationship management includes the interpersonal skills of communicating clearly and convincingly, disarming conflicts, and building strong personal bonds. New research suggests that a leader’s moods and associated behaviors greatly influence bottom-line performance. A sense of humor is the most contagious mood.
3. Flexibility and Adaptability. A leader must be flexible and adaptable enough to cope with change, especially because a leader is someone who facilitates change. Flexibility, or adjusting to situations, has long been recognized as an important leadership characteristic. 4. Internal Locus of Control. People with an internal locus of control believe that they are the primary cause of events happening to them. A leader with an internal locus is perceived as more powerful than one with an external locus because he or she assumes responsibility for events. 5. Courage. Leaders need the courage to take risks and to take the initiative. Courage in the present context refers to behaviors such as prudent risk taking, facing responsibility, and a willingness to put one’s reputation on the line. II. LEADERSHIP MOTIVES Leaders can be differentiated from nonleaders and ineffective leaders in terms of their motivesand needs. The motives described here are task-related. A. The Power Motive Effective leaders have a strong need to control resources. They vigorously exert power, think about how to alter the behavior of others, and care about status. 1. Personalized Power Motive. Leaders with a personalized power motive seek power mostly to further their own interests, and enjoy dominating others. Donald Trump is an extreme example. 2. Socialized Power Motive. Leaders with a socialized power motive use power primarily to achieve organizational goals or a vision. These leaders are less defensive than those with a personalized power motive, and they are more willing to accept expert advice. B. Drive and Achievement Motive. Leaders are known for the strong effort they invest in achieving work goals. Drive refers to a propensity to put high energy into achieving goals. Achievement motivation refers to finding joy in accomplishment for its own sake. C. Strong Work Ethic. Effective leaders typically have a strong work ethic, a firm belief in the dignity of work. A strong work ethic helps the organizational leader believe that the group task is worthwhile. D. Tenacity. Leaders are better than nonleaders at overcoming obstacles. Tenacity multiplies in importance for organizational leaders because it can take so long to implement a new program. As Bennis contends, the central ingredient of power is purpose. III. COGNITIVE FACTORS AND LEADERSHIP Mental ability as well as personality is important for leadership success. Problem-solving andintellectual skills are referred to collectively as cognitive factors. A. Knowledge of the Business or Group Task An effective leader has to be technically or professionally competent in some discipline, particularly when leading a group of specialists. Knowledge of the business is
critically important for strategy formulation. An analysis of CEO leadership concluded that one of the basic ways in which top executives lead is through the expertise approach—the belief that the leader’s most important responsibility is providing an area of expertise that will be a source of competitive advantage. B. Creativity Many effective leaders are creative in the sense that they arrive at imaginative and original solutions to complex problems. Creative ability lies on a continuum, with one end being represented by business leaders who think of innovative products and services. At the other end of the continuum are leaders who rely on standard solutions to problems. C. Insight into People and Situations Another important cognitive trait of effective leaders is insight, a depth of understanding that requires considerable intuition and common sense. A manager with keen insight is able to make good choices in selecting people for key assignments. Insight also facilitates the leader’s adapting his or her style to the situation. D. Farsightedness and Conceptual Thinking To develop visions and incorporate strategy, a leader needs farsightedness, the ability to understand the long-range implications of actions and policies. Many of today’s business leaders are accused of having a shortsighted emphasis on quick profits. Conceptual thinking refers to the ability to see the overall perspective and makes farsightedness possible. A conceptual thinker is also a systems thinker. E. Openness to Experience A positive orientation toward learning is another cognitive characteristic that is important for leaders. IV. THE INFLUENCE OF HEREDITY AND ENVIRONMENT ON LEADERSHIP The traits, motives, and characteristics required for leadership effectiveness are a combinationof heredity and environment. Personality traits and mental ability are based on certain inheritedpredispositions and aptitudes, which, however, require the right opportunity to develop. Forexample, a person may inherit high mental ability but needs the right experiences to learn todevelop innovative solutions to problems facing the group. The outermost areas of the brain govern analytical thinking and technical skills,whereas the innermost areas of the brain govern emotions. A person therefore has the genesthat influence the emotional intelligence necessary for leadership. However, experience isimportant for emotional intelligence because it increases with age. The case histories of six setsof brothers who all achieved the rank of president or higher at different companies highlight thecomplexity of sorting out the influences of heredity versus the environment on leadership. V. THE STRENGTHS AND LIMITATIONS OF THE TRAIT APPROACH The evidence is convincing that leaders possess different personal characteristics from thoseof nonleaders. A knowledge of the traits associated with leadership effectiveness helps in theselection of leaders. Awareness of these characteristics can also point a person toward the rightdevelopmental experiences, such as learning to become more assertive. The current emphasison emotional intelligence, which is really a group of traits and behaviors, reinforces theimportance of the trait approach. The trait approach is limited because it does not specify which
traits are absolutely needed in which leadership situations and how much of each trait is needed. For example, when does ambition cross the line and become greed and gluttony? Certain traits increase the probability of a person’s becoming an effective leader, but the situation often influences which traits will be the most important. Drucker believes that a leader cannot be categorized by a particular personality type, style, or set of traits. Instead, a leader should be understood in terms of his or her constituents, results, example setting, and responsibilities. VI. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT Considering that emotional intelligence is so important for leadership success, many organizations sponsor emotional intelligence training for managers. A realistic starting point in improving emotional intelligence by yourself is to work with one of its five components at a time, such as empathy. You would first obtain feedback about your empathy, and then work diligently on any deficiency. After the attempted improvements in empathy, solicit more feedback.COMMENTS ON EXPERIENTIAL EXERCISESLeadership Self-Assessment Quiz 2-1: Behaviors and Attitudesof a Trustworthy LeaderBehavioral specifics of being trustworthy are particularly important because of the renewed emphasison trustworthiness for leaders in recent years.Leadership Self-Assessment Quiz 2–2: The Assertiveness ScaleAlthough we do not have normative data, the assertiveness scale has been used with thousands ofstudents. The consensus is that the scale yields a sensible score. People who are concerned abouttheir level of assertiveness may be prompted to take action after taking this self-assessment quiz. TheGuidelines for Action and Skill Development section on pages 57–58 provides practical suggestionsfor becoming more assertive.Leadership Skill-Building Exercise 2-1: A Sense of Humor on the JobAsking students to develop situational humor serves two important purposes. Students quickly learnthat making appropriate humorous comments requires skill, and the exercise raises their awareness ofthe importance of humor in leadership.Leadership Skill-Building Exercise 2-2: Developing an Internal Locus of ControlAn important potential contribution of this exercise is that it helps students examine concrete ways inwhich they might become self-directing, or develop an internal locus of control. Clichés about takingcontrol of one’s life are widely mentioned, but here is an opportunity to actualize the concept.Leadership Skill-Building Exercise 2-3: Group Feedback on Leadership TraitsA cursory look at this exercise suggests that it is a form of sensitivity training. This exercise, however,requires all positive feedback, thus decreasing the chances of emotional damage. We believe there is
little risk of a participant’s being judged as having no leadership traits or characteristics. (This wouldconstitute very negative feedback.)COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES 1. How much faith do voters place in the trait theory of leadership when they elect public officials? Most voters place high implicit faith in the trait theory of leadership because many of their judgments about candidates are based on perceived traits. Television appearances by candidates serve as a major source of information about the candidates’ traits. An example is that many people regarded presidential aspirant Al Gore as too emotionally flat. Gore then attempted to improve his emotional responsiveness and was able to express emotion more forcibly. However, some critics believed that Gore still needed more work to appear less stiff. 2. Suppose a college student graduates with a major for which he or she lacks enthusiasm. What might this person do about becoming a passionate leader? The bold approach would be for this person to make an early career switch into a field he or she cared about, such as a management major shifting to social work. A less bold approach would be to search for an activity in his or her field that is intrinsically exciting. For example, some people are passionate about preparing PowerPoint slides even though they are neutral or negative toward other aspects of the job. The person could then focus on these slides as a source of passion in his or her work. 3. What would a manager to whom you report have to do to convince you that he or she has high self-confidence? The answer to this question is a function of what self-confidence means to the individual. Typical indicators of self-confidence in a manager would be speaking with conviction, withstanding criticism, and handling pressure well. 4. What would a manager have to do to convince you that he or she has humility? For many workers, a sure-fire indicator of a manager having humility would be for the manager to admit mistakes, ask for help, and sometimes say, “I don’t know.” 5. Describe any leader or manager, whom you know personally or have watched on television, who is unenthusiastic. What effect did the lack of enthusiasm have on group members? The presumed effect of low enthusiasm by the leader or manager would be low enthusiasm by group members. However, enthusiastic group members who are highly self-reliant, or have a strong internal locus of control, would not be dampened by the unenthusiastic manager. One student said that the university’s president was so unenthusiastic that she thought he was not interested in students. As a consequence, she felt less positively about the university. 6. Why is emotional intelligence considered more important than technical skill at high-level leadership positions? Emotional intelligence is more important than technical skill for high-level leadership positions because high-level leaders spend more time dealing with people than technical issues. An activity such as selling constituents on a vision deals more heavily with the emotions of people than with technical considerations.
7. A CEO made the following comment about leadership and intelligence: “Sometimes a less than top IQ is an advantage because that person doesn’t see all the problems. He or she sees the big problem and gets on and gets it solved. But the extremely bright person can see so many problems that he or she never gets around to solving any of them.” What is your reaction to his comment? What the company president implies about intelligence and problem solving is partially true. Some people with extremely high intelligence suffer from analysis paralysis. Nevertheless, with proper coaching and self-discipline, a very intelligent person can learn to become more decisive. 8. A disproportionate number of people who received an M.B.A. at Harvard Business School are top executives in Fortune 500 business firms. How does this fact fit into the evidence about the roles of heredity and environment in creating leaders? The fact that so many Harvard Business School graduates become top business executives presents a cogent argument for both sides of the heredity versus environment debate. The majority of Harvard M.B.A.s come from families with intelligent, energetic members, thereby emphasizing the importance of heredity. At the same time many Harvard M.B.A.s come from culturally enriched environments, have great contacts from the past, and develop new ones at Harvard—underlining the importance of environment. Another interpretation is that heredity and environment combine to help along the Harvard M.B.A.s. 9. Visualize the least effective leader you know. Identify the traits, motives, and personal characteristics in which that person might be deficient. Students will rise high to this occasion because so many people feel they have had leaders who are ineffective. Typically the perceived negative traits will fall within the realm of interpersonal relations, such as being suspicious or verbally abusive, or having an uneven temper.10. Many people who disagree with the trait approach to leadership nevertheless still conduct interviews when hiring a person for a leadership position. Why is conducting such interviews inconsistent with their attitude toward the trait approach? Conducting interviews is consistent with an anti-trait approach because a major purpose of the interview is to assess personal characteristics that would be related to job effectiveness. Another purpose of the interview is to assess interpersonal skills, which are closely related to traits. If the interview were simply used to discuss the terms of employment and to assess experience, then the interview would not be inconsistent with a trait approach.PLAUSIBLE RESPONSES TO CASE QUESTIONSLeadership Case Problem A: What Leadership CharacteristicsDoes Reuben Mark Possess?Reuben Mark is a good case study because he is a quiet success (see BusinessWeek, September 23,2002, pp. 83–84). 1. Which leadership traits, characteristics, and motives does Mark (and his executive team) appear to possess? Support your answer with specific statements in the case history. a. “Relentless focus on developing new products and getting them into markets around the world at high speed.” This suggests good knowledge of the business.
b. “Mark has been unwilling to bask in the glory so many other CEOs savor.” This is a strong indicator of humility. c. “. . . Mark and Colgate president Bill Shanahan have run a tight ship, with few defec- tions. . . . ” Low turnover could suggest that Colgate managers are trustworthy, and that Mark and Shanahan are trusted. d. “The senior management . . . are deeply involved in the details.” The statement strongly indicates the cognitive trait of knowledge of the business. e. “Says Dolan, ‘Reuben Mark is very smart, very demanding, and very, very, funny.’ ” This shows cognitive intelligence and sense of humor. f. “Mark avoids media interviews because he does not like to draw too much attention to himself.” This remark shows humility again. 2. Which traits, motives, and characteristics do you perceive to be Mark’s strongest? Mark is so successfully involved with product development that knowledge of the business is a key strength. His humility also assists his leadership stature in an important way. 3. What suggestions can you offer Reuben Mark to improve as a leader or to improve the company? If Mark were less low key in terms of gathering publicity he might attract more investors to the company, thereby driving up the stock price. However, Colgate is already doing well with investors, so our suggestion is speculative.Leadership Case Problem B: The Urban Improvement GuysThis case illustrates entrepreneurial leadership in a low-technology field. 1. Explain whether or not Glazer and Samloff qualify as leaders. Glazer and Samloff qualify as leaders because they are entrepreneurial leaders and have brought about constructive change in their city. 2. In what ways do the traits and characteristics of Glazer and Samloff complement each other? Glazer focuses more on new prospects for the company, suggesting that he is best at direction setting and visioning. Samloff focuses more on the day-by-day intricacies of managing properties, suggesting that his leadership is directed within the company, and that he is a strong manager. 3. What evidence do you find that Glazer and Samloff are farsighted? Both see the possibilities in neglected properties and can visualize a better future. Samloff’s comment that “urban improvement spreads too” is certainly farsighted. 4. What cognitive skills are reflected in the leadership of Buckingham Properties? Both Glazer and Samloff are actively involved in the details of the business such as sizing up properties and later inspecting them. This type of activity reflects knowledge of the business.
Farsightedness, a cognitive skill, is demonstrated in Samloff’s statement, “We take somethingand say, this is pretty raw, but is there a gem in this ore we can extract?”
CHAPTER 3Charismatic and Transformational LeadershipThe purpose of this chapter is to help the reader understand the nature of charismatic andtransformational leadership. Although the two forms of leadership overlap, they are treated separatelyin this edition of the text. The legitimacy of either of these forms of leadership as a separate entity hasbeen challenged. Nevertheless, studying charismatic and transformational leadership represents animportant current thrust in understanding the leader’s role.CHAPTER OUTLINE AND LECTURE NOTESCharismatic leaders are so exciting, so appealing, so magnetic, and so visionary that their constituentseagerly accept their leadership. I. THE MEANINGS OF CHARISMA Charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. The various definitions of charisma presented in Table 3–1 have a unifying theme. Charisma is a positive and compelling quality in a person that creates a desire in many others to be led by him or her. The attributes of charisma are important because they lead to behavioral outcomes such as commitment to the leader, self-sacrifice, and high performance. A study with law enforcement workers and business students showed that network members influence our attributions of charisma. A. Charisma: A Relationship Between the Leader and Group Members According to John Gardner, charisma applies to leader-constituent relationships in which the leader has an exceptional gift for inspiration and nonrational communication. Charismatic leaders work deliberately at cultivating the relationship with group members through impression management. These leaders recognize that the perceptions of constituents determine whether they function as charismatics. Charismatic leaders are skillful actors in presenting a charismatic face to the world. B. The Effects of Charisma House developed a theory of charismatic leadership that defines charisma in terms of its effects. A charismatic person brings about these effects to a high degree. Halpern has factor analyzed these nine effects into three dimensions: referent power, expert power, and job involvement. Referent power is the ability to influence others and stems from the leader’s desirable traits and characteristics. Expert power is the ability to influence others because of one’s specialized knowledge, skills, or abilities. Job involvement is the feeling of being heavily committed to the job.
II. TYPES OF CHARISMATIC LEADERS Charismatic leaders have been categorized into five types: (1) socialized charismatic—usespower to benefit others; (2) personalized charismatic—uses power to serve own interests; (3)office-holder charismatic—much of the charisma stems from the glitter of the office the leaderholds; (4) personal charismatic—power stems from the faith people have in the leader; (5)divine charismatic—leader is endowed with a gift of divine grace. III. CHARACTERISTICS OF CHARISMATIC LEADERS Charismatic leaders have unique characteristics, and many of these characteristics also applyto a transformational leader—one who brings about positive, major changes in anorganization. In contrast, a transactional leader is a manager who mostly carries ontransactions with people, such as taking care of administrative work and offering rewards forgood performance. In addition to the characteristics described in Chapter 2, charismatic leaders haveother attributes: (1) they are visionary; (2) they have masterful communication skills; (3) theyhave the ability to inspire trust; (4) they are able to make group members feel capable; (5) theyhave energy and an action orientation; (6) they have emotional expressiveness and warmth; (7)they romanticize risk; (8) they use unconventional strategies; (9) they have a self-promotingpersonality; (10) they challenge, prod, and poke; and (11) they are dramatic and unique. Thelast tactic is an amalgam of many others.IV. THE VISION COMPONENT OF CHARISMATIC LEADERSHIP Vision is the ability to imagine different and better conditions and the ways to achieve them.Effective leaders have clear visions, and vision is an important part of strategy implementationand bringing about change. Charismatic leaders inspire others with their vision, because avision uplifts and attracts others. The charismatic leader also helps implement the vision. To create a vision, it is helpful to obtain information from many sources, including (1)personal intuition, (2) the work of futurists, (3) group discussions with group members, (4) othervision statements, (5) the hopes and dreams of constituents, and (6) the larger organization’svision. Visions can be inspiring but they need to be supported by managers who are strong atimplementation. V. THE COMMUNICATION STYLE OF CHARISMATIC LEADERS Charismatic and transformational leaders communicate their visions, goals, and directives in acolorful, imaginative, and expressive manner. They also communicate openly and encouragefeedback. A. Management by Inspiration An important factor in inspiring others is the ability to craft and articulate a highly emotional message. Two such rhetorical techniques follow: 1. Using Metaphors and Analogies. A well-chosen analogy or metaphor appeals to the intellect, imagination, and values. 2. Gearing Language to Different Audiences. Metaphors and analogies are inspiring, but to be effective, leaders must also choose the level of language to suit the audience. Conger has observed that an executive’s ability to speak colloquially contributes heavily to creating appeal. B. Management by Anecdote
Management by anecdote is the technique of inspiring and instructing group members by telling fascinating stories. The technique is a major contributor to building a strong company culture.VI. THE DEVELOPMENT OF CHARISMA By developing some of the traits, characteristics, and behaviors of charismatic people, aperson can increase his or her charisma. Suggestions for developing charisma include thefollowing: (1) Create visions for others and connect the visions to their dreams; (2) beenthusiastic, optimistic, and energetic; (3) be sensibly persistent; (4) remember the names ofpeople; (5) make an impressive appearance; (6) be candid; and (7) display an in-your-faceattitude.VII. TRANSFORMATIONAL LEADERSHIP The focus of transformational leadership is on what the leader accomplishes rather than on theleader’s personal characteristics and relationships with group members. The transformationalleader helps bring about major, positive changes. In contrast, the transactional leader focuseson more routine transactions, with an emphasis on rewarding group members for meetingstandards. A. How Transformations Take Place To accomplish his or her lofty purposes, the transformational leader attempts to overhaul the organizational culture or subculture. Seven ways in which the leader brings about such transformations are: (1) raising people’s awareness; (2) helping people look beyond self-interest; (3) helping people search for self-fulfillment; (4) helping people understand the need for change; (5) investing managers with a sense of urgency; (6) committing to greatness; (7) adopting a long-range perspective and at the same time observing organizational issues from a broad rather than a narrow perspective; and (8) building trust. B. Attributes of Transformational Leaders Seven qualities are particularly helpful in bringing about transformations: (1) charisma including agreeableness and extroversion; (2) vision creation; (3) encouraging the personal development of staff members; (4) supportive leadership; (5) empowerment; (6) innovative thinking; and (7) leading by example. One study showed that maximum performance of transformational leaders was associated with openness to experience and extroversion.
C. The Impact of Transformational and Charismatic Leadership on Performance 57 Several empirical studies have been conducted on the effects of charismatic and transformational leadership in work settings. 1. Business Unit Performance. Howard and Avolio conducted a study with financial managers about transformational leadership and business unit performance. Leaders who displayed more individualized consideration, intellectual stimulation, and charisma contributed positively to business unit performance. Leaders who used management by exception and positive reinforcement were less likely to increase unit performance. 2. Charismatic Leader Behavior in Military Units. Charismatic leadership behavior was studied with fifty field companies in the Israel Defense Forces. The data indicated that the performance appraisal by a leader’s superior was strongly related to two of the charismatic behaviors studied: ideological emphasis and exemplary behavior.VIII. CONCERNS ABOUT CHARISMATIC LEADERSHIP The topic of charisma and transformational leadership has been challenged from two majorstandpoints: the validity of the concept and the misdeeds of charismatic leaders. A. Challenges to the Validity of Charismatic Leadership Most leadership researchers doubt that charisma can be accurately defined and measured. Also, charismatic leaders are not liked by everyone. According to the concept of leadership polarity, leaders are often either revered or vastly unpopular. People rarely feel neutral about them. Also, charisma may not be required for leadership effectiveness. Bennis and Nanus hypothesize that people who are outstanding leaders are perceived as charismatic by their constituents as a result of their success. B. The Dark Side of Charismatic Leadership Some people are concerned that charisma can be exercised for evil purposes. Some charismatic leaders are unethical and lead their organizations toward illegal and immoral ends. People are willing to follow the charismatic leader down a quasi-legal path because of his or her referent power. Some charismatic leaders thus neglect their social responsibility, the idea that organizations have an obligation to groups in society other than owners or stockholders and beyond that prescribed by law or union contract. IX. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT To create charismatic appeal, make everyone you meet feel that he or she is quite important,use a firm handshake and good eye contact, and give sincere compliments. Thank peoplefrequently, smile frequently, and maintain a childlike fascination with your world.
COMMENTS ON EXPERIENTIAL EXERCISESLeadership Self-Assessment Quiz 3-1: The Emotional Expressiveness ScaleGiven that emotional expressiveness is such an important part of being perceived as charismatic, it isworthwhile for students of leadership to reflect on their expressiveness.Leadership Skill-Building Exercise 3-1: Formulating a VisionOur experience is that students take readily to vision formulation. As one student said after completingthis exercise, “I do visions.” The visions that students construct in thirty minutes sound remarkably likethose it takes some organizations six months to formulate. If the completed visions are presented tothe rest of the class, feedback can be invited.Leadership Skill-Building Exercise 3-2: Charismatic Leadership by AnecdoteThis exercise requires both analytical and imaginative thinking. An example that fits here is theDomino Pizza emphasis on customer service. Supposedly, pizza dough was flown by airplane to aDomino store to cover a shortage and maintain good service. The description of “moments of truth” inThe Leadership Challenge by Kouzes and Posner provides several relevant anecdotes.Manager Assessment Quiz 3-2: The MLQ Charismatic Leadership ScaleA productive perspective here is that the behaviors indicated by the items are as important ascalculating a score. The MLQ scale appears to be the most widely used instrument in research oncharisma.COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES 1. Identify a business, government, education, or sports leader whom you perceive to be charismatic. Explain the basis for your judgment. The particular leader singled out as charismatic is not as important as how the choice is justified, such as pointing to the leader’s colorful communication style. Bill Gates and Steve Jobs often come to students’ minds when they are asked to identify a charismatic business leader. 2. Identify a well-known leader who is not charismatic. Explain what other qualities might have helped this leader succeed. Because the perception of charisma is often a function of emotional expressiveness and nonverbal communication, students will frequently designate a bland-appearing leader as noncharismatic. Former vice president Al Gore was often labeled as noncharismatic by the press and comedians. After intensive coaching he began to appear more charismatic to some people, mainly because of increased emotional expressiveness. Gore, nevertheless, still makes an impressive physical appearance, and his well-developed intellect and exceptional connections have helped him succeed. President George W. Bush receives mixed reactions in terms of charisma, with his speaking skills detracting from his charismatic image. 3. Steven Jobs of Apple Computer, Inc., and many fashion designers wear the same outfit most of the time, even for press interviews and trade shows or fashion shows. The outfit consists of a
long-sleeve or short-sleeve T-shirt and blue jeans without a belt. How does this costume affect their projection of charisma? The T-shirt and jeans outfits enhance charisma because the outfits are “cool.” Of course, the reason these outfits are “cool” is that many of the other people present are wearing expensive business attire or high-fashion costumes. 4. Describe how a person might write email messages to give an impression of being charismatic. To appear more charismatic, the person might follow the suggestions for persuasive communication presented in Chapter 12. Any constructive way of appearing dramatic and unique, such as colorful phrases, will help an email message appear to have been sent by a charismatic person. Emoticons, such as a “smiley,” are so widely used they might not contribute to a charismatic image. Choosing an interesting font and background color or picture will sometimes enhance charisma, but the written message is more important. 5. Aside from contributing to leadership effectiveness, for what other types of jobs might charisma be an asset? Charisma is a major asset in selling, and sales representatives are the most likely to enroll in seminars and read books about becoming more charismatic. Charisma would also be an asset in any position that involves considerable negotiation, such as a labor-relations specialist. 6. Explain why the presence of a charismatic leader tends to enhance the job satisfaction of group members. A charismatic leader often enhances group members’ job satisfaction because people enjoy associating with a person they perceive as having an outstanding personality. Furthermore, many charismatic leaders are perceived as winners, and most people like to associate with winners. 7. What opportunities might a first-level supervisor or team leader have to be a transformational leader? A first-level supervisor or team leader will sometimes have the opportunity to improve greatly the performance of an underperforming and/or demoralized organizational unit. A supervisor or team leader is often assigned to such a unit as a developmental experience. 8. In what way is a transactional leader functioning more as a manager than a leader? A transactional leader is involved primarily with interactions between people that are characterized as management rather than leadership. Among them are administering rewards and punishments, giving performance evaluations, and discussing work assignments. 9. A concern has been expressed that leaders who are charismatic are often incompetent. They simply get placed into key positions because they create such a good impression. What do you think of this argument? Many instances probably do exist of “counterfeit executives.” They are smooth and polished but not very analytical. Our impression is that more of these “all form, no substance” managers are weeded out in today’s thinned-out organizations.10. Design a research study or survey to determine if you are perceived as being charismatic. Be prepared to share your observations with other group members.
The survey might list all the characteristics of a charismatic leader. It then might ask respondents who knew the person well to rate the person on a 1-to-5 scale. Write-in comments to this anonymous survey about the person’s charismatic appeal might also be solicited.PLAUSIBLE RESPONSES TO CASE QUESTIONSLeadership Case Problem A: Pat Russo Wants to Rescue LucentThis case provides some insights into the work of a leader attempting to bring about transformations. 1. In what ways might Russo be classified as a transformational leader? First, Russo was recruited back to Lucent to complete a turnaround. The company had shrunk considerably in size and revenues. Second, she had previously turned around the AT&T Business Communications Division. 2. Based on the evidence presented, how would you rate Russo’s charisma? A few threads of evidence suggest that Russo is moderately charismatic. Her physical appearance is positive, her speech is careful, and she inspires considerable loyalty. 3. What suggestions might you offer Patricia Russo to help accelerate the turnaround at Lucent? Russo is focusing on selling more of the existing product line. She may need to do something more dramatic, such as selling a new product or service. Possibly the famous research lab at Lucent might offer its services to other companies, providing they are not competitive with Lucent. 4. How ethical was Russo in leaving Lucent, taking a top job at Eastman Kodak Company, and then returning to Lucent in nine months? Russo’s leaving was obviously an embarrassment to Kodak, since they never would have hired her for a nine-month stint. Many students see no ethical problems in leaving an employer after a brief stay, yet few people would want their own company to experience the same problem. Jumping ship so quickly probably would not fare well when seen through an ethical screen.Leadership Case Problem B: Charismatically Challenged ChadThe theme of this case is one faced by thousands of ambitious people: they want to get ahead but notenough people think they have the charisma to merit being promoted. Former GE executive RobertNardelli (now chief exec at Home Depot Inc.) was floored when he was turned down for the top job,even though he had achieved his financial targets. Perhaps Jack Welch thought he was notcharismatic enough. 1. What career advice can you offer Chad McAllister? Accept the feedback from his two managers, and begin a program of becoming more noticeable and charismatic. 2. What might Chad do to develop more charisma?
He should take some of the steps in the section about developing charisma. A good starting point would be to express his opinions and feelings more frequently.3. What is your opinion of the fairness of the ValuTracker program? As long as the people placed in the ValuTracker group are not chosen arbitrarily or through favoritism, the program is fair. Many large organizations identify potential leaders early in their careers because the long-range success of the organization depends on having a strong cadre of leaders.
CHAPTER 4Leadership Behaviors, Attitudes, and StylesThe purpose of this chapter is to provide the reader with an understanding of basic leadershipbehavior and attitudes, as well as styles. Some of the information goes back to classic studiesconducted in the 1950s and 1960s, and some is recent. Two other topics are featured: servantleadership, and how leaders use 360-degree feedback to fine-tune their behaviors.CHAPTER OUTLINE AND LECTURE NOTESThis chapter covers pioneering information about leadership behaviors and attitudes that served as thebasis for studies of leadership styles and contingency theories of leadership. A sampling of thesestyles is presented as well as current information about behaviors, attitudes, and styles. An effectiveleader is one who facilitates group members’ attaining productivity, quality, and satisfaction. I. THE CLASSIC DIMENSIONS OF INITIATING STRUCTURE AND CONSIDERATION The Ohio State studies developed questionnaires about leaders that included self- assessments and assessments by subordinates. This research became the foundation for most of the future research about leadership behavior, attitudes, and styles. Two dimensions (as identified by factor analysis) accounted for 85 percent of the variance in descriptions of leadership behavior. Initiating structure is the degree to which the leader organizes and defines relationships in the group by activities such as assigning specific tasks, specifying procedures to be followed, scheduling work, and clarifying expectations. Consideration is the degree to which the leader creates an environment of emotional support, warmth, friendliness, and trust. Leaders who score high on the consideration factor typically are friendly, trustful, earn respect, and have a warm relationship with team members. An important output of the research on initiating structure and consideration was to categorize leaders with respect to how much emphasis they place on the two dimensions. As implied by Figure 4–1, the two dimensions are not mutually exclusive. II. TASK-RELATED ATTITUDES AND BEHAVIOR Task-related means that the behavior, attitude, or skill focuses more on the task to be performed than on the interpersonal aspects of leadership. 1. Adaptability to the situation. Effective leaders adapt to the situation by choosing a tactic based on the unique circumstances at hand (the contingency approach). 2. Direction setting. The leader must set the direction of change. According to Kotter, leaders gather voluminous data and search for patterns, relationships, and linkages that help create events. Direction setting creates vision and strategies. A new buzzword to signify direction setting is the northbound train.
3. High performance standards. Effective leaders consistently hold group members to high standards of performance. Setting such standards increases productivity, partly because of the Pygmalion effect. 4. Risk taking and bias for action. To bring about constructive change, the leader must take risks and be willing to implement these risky decisions. 5. Hands-on guidance and feedback. The leader who provides hands-on guidance helps the group accomplish important tasks, and at the same time group members learn important skills. Too much guidance, however, can lead to poor delegation and micromanagement. The leader can rarely influence the actions of group members without appropriate performance feedback. 6. Stability of performance. Effective leaders are steady performers, even under heavy workloads and uncertain conditions. Remaining steady helps team members cope with the situation. 7. Ability to ask tough questions. Many times leaders can be effective by asking tough questions rather than providing answers. A tough question is one that makes a person or group stop and think about why they are doing or not doing something. III. RELATIONSHIP-ORIENTED ATTITUDES AND BEHAVIORS Leadership involves influencing people, so it follows that many effective leadership attitudes,behaviors, and practices deal with interpersonal relationships. A. Aligning and Mobilizing People. Many people have to be aligned (a state of pulling together) to create significant change toward a higher purpose. Alignment enables people to have a clear sense of direction because they are pursuing a vision. Aligning people takes place at almost a spiritual level, whereas mobilizing people is closer to getting the group working together smoothly. One mobilizing practice is to demonstrate care for team members. B. Concert Building. A new conception of the leader’s role, concert building, involves both aligning and mobilizing. The goal of the concert builder is to produce a system that is self-evaluating, self-correcting, self-renewing, and ongoing. C. Creating Inspiration and Visibility. Inspiring others is an essential leadership practice. An example of an inspiring practice is building enthusiasm about projects and assignments. Being visible and available facilitates inspiration. D. Satisfying Higher-Level Needs. Motivation and inspiration energize people by satisfying needs for achievement, a sense of belonging, recognition, self-esteem, and a feeling of control over one’s life. E. Giving Emotional Support and Encouragement. Supportive behavior toward team members usually increases leadership effectiveness. F. Promoting Principles and Values. A major part of a top leader’s role is to help promote values and principles that contribute to the welfare of individuals and the organization. Covey advises that an organization’s mission statement must be for all good causes.
G. Being a Servant Leader. Wanting to serve others as a leader is a relationship behavior that encompasses several other key behaviors. A servant leader serves constituents by working on their behalf to help them achieve their goals, not the leader’s own goals. A servant leader is a moral leader. Key aspects of servant leadership include the following: 1. Place service before self-interest. 2. Listen first to express confidence in others. 3. Inspire trust by being trustworthy. 4. Focus on what is feasible to accomplish. 5. Lend a hand. 6. Provide tools.IV. 360-DEGREE FEEDBACK FOR FINE-TUNING A LEADERSHIP APPROACH Many leaders solicit systematic feedback to improve their leadership behavior and attitudes.360-degree feedback is a formal evaluation of superiors based on input from people who workfor and with them, sometimes including customers and suppliers. 360-degree feedback is morefrequently used for leadership and management development than for performance evaluation.Such feedback can help detect barriers to success, such as a leader’s being perceived as usingan inappropriate leadership style. 360-degree feedback is a key component of the leadershiptraining program called Benchmarks. Approaches to implementing 360-degree feedback for performance evaluation anddevelopment continue to emerge. One variation of the method is to build a 360-degree surveyaccessed via the Internet and the company’s intranet. A review of over 600 studies of 360-degree feedback found that only one-thirdreported performance improvement, and one-third reported performance decreases. To makebetter use of 360-degree surveys focus on business goals and strategy, deal with importantaspects of leadership, train for giving and receiving feedback, and create action plans.V. LEADERSHIP STYLES A leader’s combination of attitudes and behaviors leads to a certain regularity andpredictability in dealing with group members. Leadership style is the relatively consistentpattern of behavior that characterizes a leader. Most classifications of leadership style arebased on the dimensions of initiating structure and consideration. A. Participative Leadership Style Sharing decision making with group members, and working with them side-by- side, has become the generally accepted leadership approach. Participative leaders share decision making with group members. The style encompasses three subtypes: (1) consultative leaders confer with group members before making a decision, but retain the final authority; (2) consensus leaders strive for consensus; and (3) democratic leaders confer final authority on the group. The participative style has also been referred to as trickle-up leadership because the leader accepts suggestions for managing the operation group members. The participative style is well suited to managing competent people who want to get involved in making decisions and giving feedback to management. However, the style often results in extensive and time-consuming team meetings and committee work.
B. Leadership Grid® Styles The Leadership Grid is a framework for simultaneously specifying concernfor production and concern for the people dimensions of leadership. Grid styles are basedon the extent of a person’s concern for production and people: Authority-Compliance (9,1);Country Club Management (1,9); Impoverished Management (1,1); Middle-of-the-RoadManagement (5,5); and Team Management (9,9). The ideal position is the 9,9 orientation, which integrates concern forproduction and concern for people. This team management style usually results in improvedperformance, low absenteeism and turnover, and high employee satisfaction. The managershould use principles of human behavior to size up the situation. C. Entrepreneurial Leadership Many entrepreneurs and intrapreneurs use a similar leadership style thatstems from their key personality characteristics and circumstances. A general pictureemerges of a task-oriented and charismatic leader. Even if it is not a true leadership style,at least there are some traits and behaviors characteristic of entrepreneurs andintrapreneurs: 1. Strong achievement drive and sensible risk taking. 2. High degree of enthusiasm and creativity. 3. Tendency to act quickly when opportunity arises. 4. Constant hurry combined with impatience. 5. Visionary perspective. 6. Dislike of hierarchy and bureaucracy. 7. Preference for dealing with external customers. 8. Eye on the future. D. Gender Differences in Leadership Style Several researchers and observers argue that women have certain acquiredtraits and behaviors that suit them for relations-oriented leadership. Consequently, womenleaders frequently exhibit a cooperative, empowering style that includes the nurturing ofteam members. The other facet of this stereotype is that men are inclined toward acommand-and-control, militaristic leadership style. 1. The Argument for Male-Female Differences in Leadership Style Based on self-reports, Rosener found that men tended toward a command-and-control style. In contrast, women tended toward a transformational style, relying heavily on interpersonal skills. Bass found that women are less likely to practice management-by-exception and are slightly more likely to be described as charismatic. Another perspective on gender differences in leadership is whether men or women are more effective leaders. In combined studies of 425 executives, each by approximately twenty-five people, women leaders achieved higher ratings on forty-two of the fifty-two skills measured. Most of the gender differences were small. One interpretation of these findings is that the women had to be outstanding performers to hold the executive positions, so it was a biased sample. This study could make for emotional, yet thoughtful, class discussion.
2. The Argument Against Gender Differences in Leadership Style Based on a literature review, Grant concluded that there are apparently few, if any, personality differences between men and women managers. As women move up the corporate ladder, they identify more with the male model of managerial success. An important point is that both men and women differ among themselves in leadership style. As the research studies put it, “The within-group variance is greater than the across-group variance.” Also of importance, many women believe that women managers can be more hostile and vindictive than male managers. More important than searching for differences is to capitalize on both male and female leadership tendencies. Connie Glaser sees a new management style that blends the male and female sides. E. Selecting the Best Leadership Style A recent study with 3,000 executives revealed that leaders who get the best results do not rely on one style. Instead, they use several different styles in one week, such as being autocratic in some situations and democratic in others. The cultural setting must also be considered, such as using a strong task orientation with German workers. Stogdill made a statement about selecting a leadership style that still holds today: “The most effective leaders appear to exhibit a degree of versatility and flexibility that enable them to adapt their behavior to the changing and contradictory demands made on them.” Table 4–3 summarizes some useful ideas about the conditional variables for choosing between the participative and autocratic styles. VI. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT In choosing between a task orientation and a relationship orientation, several additional factors are also relevant. Among them are (a) the structure of the organization and the nature of the leader’s work, (b) the leader’s personality, (c) the boss’s style, and (d) the potential for conflict. A nondirective style is safer.COMMENTS ON EXPERIENTIAL EXERCISESLeadership Self-Assessment Quiz 4-1: How Effective Are You as a Leader?This exercise focuses on leadership behaviors and attitudes that represent two ends of a continuum.On one end of the continuum is the manager who values the status quo and stability. At the other endis an adventuresome manager who is more of a leader. Such a manager takes risks and has an actionorientation. We think this scale makes a contribution because it measures an important aspect ofleadership other than the task and people dimensions.Leadership Skill-Building Exercise 4-1: Feedback SkillsAn important feature of this exercise is that it provides an opportunity to practice giving feedback aboutperformance rather than feedback about personal characteristics. A possible positive byproduct of thisexercise is that the feedback results might encourage participants to perform better.
Leadership Self-Assessment Quiz 4-2: Task-Oriented Attitudes and BehaviorsAn interesting twist to this scale is that it does not assume that a low task orientation is equivalent to ahigh relationship orientation. The scale treats task orientation as an independent dimension ofleadership behavior.Leadership Skill-Building Exercise 4-2: Clarifying Your Work ValuesThe importance of this instrument centers around its focus on values. Many observers of leadershipheavily emphasize the contribution of values to leadership effectiveness.Leadership Self-Assessment Quiz 4-3: What Style of LeaderAre You or Would You Be?This leadership style quiz focuses on behaviors particularly relevant in the modern workplace. Thequiz can also be used as a skill-development exercise if the statements are interpreted as impliedsuggestions for engaging in a participative style.Leadership Self-Assessment Quiz 4-4: What Is Your Propensityfor Taking Risks?Reflecting on risk-taking tendencies is an important activity for leaders and prospective leaders. Mostorganizations today value a sensible degree of risk taking. A fruitful class discussion is why some ofthese items might reflect risk taking, such as Question 10 about flying a single-engine airplane.Leadership Skill-Building Exercise 4-3: Entrepreneurial LeadershipThe key feature of this exercise is that it gets the role players involved in a high-impact businessactivity—selling others on the merits of their business. Our informal research has shown that at leastone-third of business students aspire to entrepreneurship or self-employment at some point in theircareers, thus increasing the relevance of this exercise. A suggestion for this exercise is to caution the role players (or “skill builders”) to projectpassion and enthusiasm into the exercise.Leadership Self-Assessment Quiz 4-5: How Flexible Are You?Self-reflection about flexibility is helpful because a leader needs flexibility to adapt to situations and tochange. An important goal of this exercise is to highlight the importance of flexibility.Leadership Skill-Building Exercise 4-4: Contrasting Leadership StylesField testing indicates that this role-play is effective in illustrating basic leadership styles. Manystudents who understand these styles intellectually have difficulty translating them into behavior acts.Feedback by class members not participating in the role-play is quite beneficial.
COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES1. How is initiating structure related to planning, organizing, and controlling? Initiating structure is an important component of organizing, planning, and controlling. Much of planning, organizing, and controlling involves activities included under initiating structure.2. Give an example of high consideration behavior that a supervisor of yours showed on your behalf. What was your reaction to his or her behavior? Examples of high consideration behavior include giving a worker time off to deal with a personal problem, or giving the worker encouragement. Most people react very positively to high consideration behavior on the part of the supervisor.3. Why is direction setting still an important leadership behavior in an era of empowerment? Empowered teams still need direction regarding what activities they should be pursuing. They might then be empowered to figure out how to achieve these goals. Few teams or individual employees are empowered to pursue whatever direction they think is appropriate.4. Ask an experienced leader how he or she gives emotional support to team members. Be prepared to discuss your findings in class. Emotional support will often take the form of encouraging workers when they have problems and listening to their problems. Other specific forms of emotional support will be worth noting.5. In what way might a personalized charismatic leader have quite different motives from a servant leader? The personalized charismatic is seeking power and glory to enhance his or her career. In contrast, the primary motive of the servant leader is to help other people by helping them achieve worthwhile goals.6. How might a manager use email to help carry out both task-oriented and relationship-oriented behaviors? Task-oriented behaviors can be executed via email by sending messages containing directions, work schedules, and goals. Relationship-oriented behaviors can be executed through email by such means as sending notes of encouragement and giving compliments. The leader can give recognition by praising the worker and include a long distribution list.7. How would you characterize the leadership style of your favorite executive, athletic coach, or television character who plays a boss? To answer this question effectively, the student must choose a style categorization presented in this chapter. The student should also provide meaningful documentation, such as “When Coach Summitt sees that one of the players is feeling bad about a major mistake, Summitt puts her arm around the player. That shows she’s relationship-oriented.”8. Why is the consensus leadership style widely recommended for providing leadership to Generation X and Generation Y workers?
Generation X and Generation Y workers have a preference for being consulted extensively about key decisions. Part of the explanation is that many Gen X and Gen Y members have studied team leadership in school, and they have also worked as teams for many school projects. 9. Find a printed or Internet article on a business entrepreneur (or think of one from your personal experience). How well does that person fits the entrepreneurial leadership style? In-depth portraits of entrepreneurial leaders will usually include descriptive information on several characteristics of the entrepreneurial leadership style. Entrepreneurs are often described as individualistic (if not eccentric) and impatient. People who have worked for entrepreneurs report frequently that the entrepreneur worked unusually long hours and often expected the same of his or her employees.10. What are the practical implications of knowing that men and women typically have different leadership styles? One practical implication of knowing that men and women typically have different leadership styles is that it might be possible to assign men and women to situations where their leadership style is the most effective. For example, if a command-and-control-style leader were needed, a man might be assigned. Another implication is that the gender of one’s boss would give a person clues about the style of leadership that boss would most likely practice. A person working for a woman, for example, might adapt to her style by participating frequently in decision making and giving her the opportunity to be supportive and caring.PLAUSIBLE RESPONSES TO CASE QUESTIONSLeadership Case Problem A: The Confusing 360-Degree FeedbackThe theme of this case is that the findings of a 360-degree survey can be difficult to interpret andshould take into account the needs and perspectives of the people giving the feedback. 1. What changes in leadership attitudes and behaviors do you think Haskins should make? Haskins may need to give more structure, set a direction more clearly, and work harder at being a helpful coach. 2. How might you explain the differences of opinion that Haskins found in the written feedback and in the ratings shown in Exhibit 1? Feedback on any multirater form is to some extent a function of the needs of the people giving the feedback. For example, a self-confident individual might appreciate Haskins’ candid feedback, whereas a less confident person might think he is heavy handed. Another explanation for the discrepancy is that Haskins may be generally inspiring but still does not give workers a clear understanding of where they should direct their efforts. 3. In what leadership behavior described in this chapter might Haskins particularly need improvement? A good hypothesis here is that Haskins needs to become more adaptable to the situation— particularly being more flexible in responding to the leadership needs of group members. He may need to lead people differently, such as giving some people more structure than others.
Leadership Case Problem B: Getting Northstar in the Winning ModeThis case illustrates the impact that various leadership styles might have on productivity and morale. 1. Which person best demonstrated effective leadership? Explain the reason for your answer. Kim appears to be the most effective leader, particularly in terms of her interaction with group members. She motivates and energizes her employees to achieve their goals and creates change that can help the company. For example, in the meeting she shared with the group the importance of winning the bid. Kim also described Northstar’s long-term strategic goal of diversifying its client base. 2. Which person least demonstrated effective leadership? Explain the reason for your answer. David is an ineffective leader, with a stiff, impersonal approach to leadership. He does not energize or inspire people to reach organizational goals. In contrast, he focuses on achieving orderly results. The talk he had with Robert showed his inattentiveness and lack of interest in Robert’s ideas and concerns. 3. Where on the Leadership Grid would you place Kim, David, Robert, and Sarah? Explain the basis for your answer. Kim appears to be a 9,9 team manager. She places a strong emphasis on both the employee and the task that needs to be completed. David appears to be a 9,1 authority compliance manager. He shows little concern for the people working in his department and demands compliance to his requests. Robert appears to be a 5,5 middle-of-the-road manager. He chooses to concentrate on accomplishing the job and recognizes that he has approximately average skill in working with people. To compensate, he asks Sarah for help in dealing with people. Sarah appears to be a 1,9 country club leader, with her strong emphasis on working with people. It was Sarah’s idea to send employees to the concert to learn about the client. If we knew more about Sarah’s work approach, she might receive a higher rating than 1 for production concern.
CHAPTER 5Contingency and Situational LeadershipAfter studying this chapter, the reader should have an accurate understanding of contingency theoriesof leadership. Although the array of contingency and situational theories may baffle the reader at first,a closer look shows that all but the executive suite theories are related. For example, the familiar tasksversus relationships dimensions run through several of the theories.CHAPTER OUTLINE AND LECTURE NOTESContingency theories specify the factors that determine which style of leadership will achieve the bestresults in a given situation. The four best-known contingency theories are described in this chapter,along with a concept of contingency leadership for CEOs. I. SITUATIONAL INFLUENCES ON EFFECTIVE LEADERSHIP BEHAVIOR The essence of the contingency approach to leadership is that leaders are most effective when they make their behavior contingent upon situational forces, including group member characteristics. Both the internal and external environments have a significant impact on leader effectiveness. A study compared the psychological profiles of thirty-five CEOs from large and small companies. The skills of small-company CEOs appeared to be centered primarily on production-oriented areas. The large-company CEOs had a significantly better developed subset of interpersonal skills. One interpretation of these findings is that the heavy pressures and understaffing faced by small-company CEOs compel them to emphasize task-related attitudes and behaviors. II. FIEDLER’S CONTINGENCY THEORY OF LEADERSHIP EFFECTIVENESS Fiedler’s theory states that the best style of leadership is determined by the situation in which the leader works. A. Measuring Leadership Style: The Least Preferred Coworker (LPC) Scale A manager’s leadership style is classified as relationship-motivated or task- motivated. One’s style is considered relatively fixed. The least preferred coworker (LPC) scale measures the degree to which a leader describes favorably or unfavorably his or her least preferred coworker. One who describes the least preferred coworker in favorable terms is relationship-motivated. In contrast, a person who describes his or her least preferred coworker unfavorably tends to be task-motivated.