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Chapter 4

The document outlines various contingency leadership theories and models, emphasizing the importance of matching leadership styles to specific situations for effective outcomes. It discusses the contributions of Indra Nooyi, CEO of PepsiCo, as a case study in applying these theories, highlighting her unique background and leadership approach. Additionally, it explores the differences between behavioral and contingency leadership theories, as well as the significance of global leadership in diverse cultural contexts.

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6 views27 pages

Chapter 4

The document outlines various contingency leadership theories and models, emphasizing the importance of matching leadership styles to specific situations for effective outcomes. It discusses the contributions of Indra Nooyi, CEO of PepsiCo, as a case study in applying these theories, highlighting her unique background and leadership approach. Additionally, it explores the differences between behavioral and contingency leadership theories, as well as the significance of global leadership in diverse cultural contexts.

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ltthuphuong123
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER CHAPTER OUTLINE Contingency Leadership Theories and Models Leaderip Tews vers leadership Hdl Camingancy Theory ad Had rites tal ConigecyLadeip Contingency Leadership Theory and Model Leader Se and the UFC Sinaoral Fearne, Deteining te Appropriate Lander Se Revere ito, ad pices Leadership Continuum Theory and Mode! Path-Goal Leadership Theory and Model Siuional Facts Lender Ses esearch it, ad Rpliations 108, Normative Leadership Theory and Models Leadership Parga Ses Hel Queso to Deere the apropateLaderip Syl Selig the Tine Dive or Derlpment- Dien Mee forte Satin Deremiing the Appi Leader Sie Reve, iim, ad plicions Putting the Behavioral and Contingency Leadership ‘Theories Together, Precip and Descpive Modes Leadership Substitutes Theory Sabsties and Nears Leader Se hang the Stn Reve icin, ad plies Contingency Leadership Theories Learning Outcomes After studying this chapter, you should be able to: @ sexe the major cference between behavioral and contingency leadership theories. and exphin the behavioral contribution to contingency theories. p. 108 © Describe the contingency leadership theory variables. p. 110 © enti the contingency leadership model styles and variables. 112 © Sate the lencershipconstnunmn minded major syies ond variables.p. 116 © Mdentify the path-goal leadership model styles and variables. ply © siies ne serine eke micas ana ‘numberof variables.p. 123 © Discuss the major siiarites and diferences between the bbehaviral and contingency leadership theories. p. 128 © Compare and contrast four major diferences among the four contingency leadership modal. p.128 © Use wile teadership models are prescriptive and descriptive, and explain why they are chassfied as such p. 129 © epain substicutes and neutraizers of leadership. p. 131 opposes nme Akt eur yc inp De i ge ny ence eC ‘saan Sd ot Se ner availa ee opaene a Lamas eGo sa ears Sy faites (CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES CIRM ee PepsiCo has four major global business units: PepsiCo ‘Americas Beverages (PAB) spans carbonated soft drinks (Pepsi, Mountain Dew), juices and juice drinks (Tropicana, Naked Juice), ready-to-drink teas and coffees (Lipton, Starbucks, Tazo), sports drinks (Gatorade), and bottled waters (Aquafina, Propel, IZZE), PepsiCo Americas Foods is the provider of many ofthe most popular food and snacks throughout North and Latin America. Its portfolio of busi nesses includes Frito-Lay North America (snack foods), Quaker Foods (cereal, granola bars) North America, and Latin American food and snack businesses, includng, Sabritas and Gamesa brands. PepsiCo Europe inchides all beverage, food, and snack businesses in Europe and South ‘Arica. PepsiCo Asi, Middle East and Afica (AMEA) includes all beverage. food, and snack businesses in these areas! Indra K. Nooyi is chairman and CEO of PepsiCo, and she is consistently ranked at or near the top of the Fortune 50 Most Powerful Women lst? Nooyi isa diflerent kind of (CEO, not just because she isan Indian woman. She says her approach boils down to "Performance with Purpose.” the goal of providing sustained financial performance through human sustainability environmental sustainability and talent sustainability She was one of the fist executives to realize ‘that the health and green movements were not just fads, and she demanded true innovation? By the numbers, PepsiCo has done well under CEO Nooyi* Its stock price hit an alltime high in 2013, PepsiCo is ranked in the top 50 (43rd and Coca-Cola is 57th) on the Fortune 500 Largest US. Corporations lst, with more than $6 billon in profts$ and its ranked in the top 40 (37th and Coca-Cola is 4th) of the Fortune Worlds Most Admired a ‘Companies* But Peps has lost some market share to Coca- Cola. Critics say Nooyi put too much focus on healthy foods In response. Peps is fighting back inthe cola war with its frst new ad campaign in three years” Can PepsiCo every win the cola war and outsell Coke? Some investors would like PepsiCo to split into two companies, separating food and beverages" Can Nooyi keep PepsiCo together” OPENING CASE QUESTIONS: |. What does climbing the corporate ladder to CEO ‘of PepsiCo have to do with contingency leader- ship? What life, educational, and job experiences ‘qualified Indra Nooyi for her job as CEO? 2. What do colleagues say about Indra Nooyi’s leadership—is it task or relationship, does she have a life outside of PepsiCo, and does she have ‘any future career plans? 3. Which continuum leadership style does Indra Nooyi tend to use in making acquisitions at PepsiCo? 4. Which path-goal leadership styles does Indra Nooyi tend to use at PepsiCo? 5, Which normative leadership styles does Indra Nooyi tend to use at PepsiC Can you answer any of these questions? Youll find an- ‘swers to these questions about PepsiCo and Indra Nooyi ‘throughout the chapter To learn more about Indra Nooyi and PepsiCo, visit the company’s Web site at [Link]. Learning State the major difference be:ween behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories. Contingency Leadership Theories and Models Both thd aiERRa BERG GERERIPRREDRER vere attempts to find the one[BSREad- crshipistyleinallsituations. By the late 1960s, it became apparent that there is, ‘hus, contingency leadership theory became the third ‘major leadership paradigm (Chapter 1), and the leadership styles used in its models are based on the behavioral leadership theor ly anderstood as Leadership is t to .” so leaders need which is called eprom nny ktm oer a ee in age Denese ceo pn ei der aera aay Sq ta eo a ome Caps Le ura Se a oa eyed npasS a 10 PART I INDIVIDUALS AS LEADERS Duke's basketball Coach K says you have to ad- just your leadership to the composition of your team. In this section, we discuss theo- ries versus models, the contingency theory factors, and the need for global contingency leadership. versus Leadership Models ‘As defined in Chapter 1, a is an explanation of someaspectofileader- ships theories have praetigallvalle because we are used to better understand, predict, and A is amexample for emulation or Models are used to represent the world of managers,” and there are many academic models of leadership." In this chapter, we discuss using models in a given situation to improve performance of leaders, followers, or both. All ofthe contingency leadership theories in this chapter haveleadetShip models, The leadership theory is the longer text that explains the Waltiablestand Neadershiprstyles to be used in igianeBHtingeneySHGR! ThcllAAUGehip mBdelWSWREROH (one-pase) summary of the theory to be used when selecting the appropriate leadershipistyle for a given situation.!S Models have been compared to baseball in this way. A model can’t teach you to get a hit every time at bat, but if you use the model, it will improve your bat- ting average. Describe the contingency leadership theory variables. Contingency Theory and Model Variables Contingency means itdepends”” Cne thing depends on other things, and fora leader to be effective, there must be an appropriate fit between the leader’s behavior and style and the followers and the situation.'° Recall from Chapter 1 that contingency leadership theo- ris aterape to explain he ica ‘Much of today’s contingency research focuses on t@aimilead@eship,” as leaders ind themselves reactingto’stuational contingencies!" See Exhibit 4.1 for a list of general lership variables that can be used as alfa Worl which to place all the singed var analyz. ing leadership. Throughout this chapter, each contingency leadership model's variables are described in terms of this framework. For each model, the leader variable also in- cludes the leadership styles of each model. & Framework for Contingency Leadership Variables eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES HII 4.1__Leadership Gender Should gender be a contingency variable in leadership? Are there differences in the lead- ership of men and women? Some researchers say that women tend to be more par- ticjpative, relationship-orented leaders and men are more assertive and task oriented. However, others say that men and women leaders are more alike than different because ‘they do the same things. Thus, there currently is no consensus in the literature that men and wornen lead differently or the same as men.!* |. Do you think that men and women lead the same or differently? 2. Are men or women more ethical and socially responsible leaders? 3, Would you prefer to have a man or woman for a boss? 4, Is ethical and socialy responsible to say that one gender makes better leaders? 5, Should global companies appoint women as managers in countries that believe in equal rights for women, but nat allow women to be managers in countries that don't have these beliefs? Global Contingency Leadership Before we get into all the theories, lets take a minute to quickly realize HOWiRipOHBE 2 Leadership is critical espe- cially with the importance ofthe globalization of business,” and because executives have “edhe adr aka pepe Nunn “Tony. selected you to take on the new [Link] you have any questions about this assigament!” — 0. “Helen ke your report. Send it to the VP right awa" WORK 4-2 Although the leadership cont del lar, it did not und. Apphcaton 4-1 \ough the leadership continuum model was very popular, it did not undergo Cinginwiescaenp | —_‘Tesearch testing like the contingency leadership model. One major criticism of this continuum medel ‘model is that the three factors to consider when selecting a leadership style are very (ait 45) iderily subjective. In other words, determining which style to use, and when, is not clear in the model. The Situational Leadership" Model and Normative Leadership Model (to be discussed later in this chapter) thus took over in popularity, most likely be- ‘cause they clearly identified which leadership style to use in a given, clearly defined situation, You will determine your major leadership continuum style later in Self-Assessment 4-4 on page 143, which puts together three of the contingency leadership styles (contin- ‘uum, path-goal, and normative). ‘on the leer the folowersand the ‘tution! Explain Capea Wi Gann Aken own ne win age Dehn gecenepne der ‘aarp cer anon atop ape Loma oe oe Grea" eer ay feats CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 119 COTS Wee ae pe 3. Which continuum leadership style does Indra Nooyi tend to use in making acquisitions at PepsiCo? Nooyi tends to use #5—the leader presents the protlem, gets suggested solutions, and makes the decision. She has cithers look into possible acquisition targets and gets recommendations from them, but Nooyi has the fnal say on which companies will be acquited. Identify the path-goal leadership model styles and variables. Path-Goal Leadership Theory and Model ‘The path-goal leadership theory was developed by. SEE on an early ver- sion of the theory by M. G. Evans, and published in 1971 and other articles over years."* His theory specified anumberofsitudtionslmaderstorsfelationshipa between tase dnd person-oriented leadership aind their effects) House attempted to explain how the), (subor- dinates). Look at ExhbIt 46 10 se how Hous's model fis into the framework of contin- gency leadership variables. Note that House’s model ‘he leader is supposed gardless of pleerred taitsandibe- The path~goal leadership model is used to s - ‘and environment) to maxiize bth performance and job satisfaction. Note hat path-goal leadership theory is based on motivation theories of goal-setting expectancy theory. ‘The leader is: nizational goals. Motivations increased by Alster patho revere that are available or ©) inteasing the rewards that the follower values and desires, Pt ‘means that the leader works with followers to help them identify and 1earA) thebehavirs that wien to suceesfl task accomplishment and organizational rewards. Path-Goal Leadership Model Variables within the Contingency Leadership ex2Q@ Framework FOLLOWERS LEADER SITUATION Subordinates None Environment (outhortarianm, (task structure frral locus of control ably) authority and work group) LEADERSHIP STYLES Drecive Supportive : Parteipative i Actieverent-oiented ; 3 eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE 120 PART | INDIVIDUALS AS LEADERS ‘The path-goal model is used to deteHnIne EMplOVES ODJSCUNES and to clarify how “to achieve them using one of four leadership styles. It focuses on how leaders influence hey follow toward goal attainment. ‘As shown in Exhibit 4.7 (an adaptation of the model), the situational factors are used to determine the leadership style that affects goal achievement through performance and. satisfaction. am™@ House Path-Goal Leadership Model LEADERSHIP STYLES GOAL ACHIEVEMENT (effec) Performance Directive Satisfaction Participative = Achievementoriented ee Source: Adapted trom | House,"A Path-Goal Theory of Leader Eeciveness Acie Scence Quarter 162), 197H: 321-329. Subordinate situational characteristics are: 1. Authoritarianisin is (HEBER which dPlOPSETASTERES OHNE and WARESBED ‘tent to which e} control goal achievement (internal) or if (external). 7’ tasks to achieve goals. Environment situational factors are: - S. is the extent of the leader'siposition powersNote that task structure and formal authority are essential the same as Fiedler’s. ithe een ov eR 5 lationship between followers. Note that House identifies work group as a situational sealer crea eid: the codlagesey Exiga Ve oor xt: lower variable. eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 121 4.2_Drug Research Several drug companies inckiding GtaxoSmithKline and Merck, have been accused of sit ationally favorable research reporting When results support the use of the drug, they are reported: when they dorit, results are not reported. Although all medications have side effects, some drug users Fave died because of medication. As a result. the Food and Drug ‘Administration (FDA) has been criticized for its process of approving drugs and monitor- ing their safety. |. Is it ethical and socially responsible to report only the results that help gain FDA approval of drugs? 2, Ifyou worked for a drug company and knew that the results of a study showed negative effects but were not included in a report, what would you do? 3, If you worked for a drug company and your boss asked you to change negative results into positive results, or to make results even better, what would you do! 4, What would you do fyou gave your bass a negative report on a drug and found out ‘the results were changed to positive results? 5, Is the FDA doing a good job of monitoring the safety of drugs? If not, what else should it do? propriate leadership style by using the following general guidelines for each style. ‘The leader provides ctive leadership is appropriate when the followers ave external locus of control, and when the follower abil- ity is Ig Directive leadership is also appropriate when th or , and the ‘The leader provi Supportive leadership is appropriate when the fol- lowers and have iritetital locus of control, and when fol- lower ability is HAgHSupportive leadership is also appropriate wih the environmental ta5ks je Bvpla ocine eRIE WER. and he weak roup does naeReOVEE OU ac. FETE cc cniployée input into decision making’ Participative leadership is appropriate when followers wanttobeinvoived-and:hayesinternabiocus ofcontro, and ‘when follower abilitysisinighs sit authority is either The leader sets expects followers to PeHORTattheir highest ee the leader provides bothihigh directive (Grate) it igh supportive (consideration) behavior. The leader tries to make the job ‘Achievement-oriented leadership is appropriate when followers are opentor ee and when follower ability is high; when the environmental task is simple, authority is strong, and job satisfaction from co- ‘workers is either high or low. eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE 122 PART I INDIVIDUALS AS LEADERS CONCEPT APPLI Path-Goal Leadership Bi Ung SEAT er pag 120 ef ert ery ths apport sia fort re atts. Wt ie eect iter the iat ere tert oe anttets Ieee teem — II. A manager is assembling 2 new task force that will have an ambiguous task to complete. The members don't know each other — 12. A manager has decided to give a new task to an employee who tends to be insecure and may feel threatened by taking on a new task. — 1B. The quarter just ended and the sales team easily met the quota The manager has strong postion power and thas decided to increase the quota to make the job more challenging, — 14 A manager has an employee who has been coming in late for work The manager has decided to get the ‘employee to get to work on time — 15. A manager has a new task, and he is not sure how it should be done. Employees are experienced and tke to be involved ‘A meta-analysis based on 120 studies examined directive and supportive behavior and showed that support for path-goal theory was significantly greater than chance, but re- sults were quite mixed. An extensive review of the research on moderator variables in leaders also had inconclusive findings.” Altho isalso As ‘WORK Applation 4-3 sai ies severe! ‘deny yoorraragrs | as presented in the guidelines for when to use the style, Judgment calls are required to tno commanl select the appropriate style as necessary. Plus, House suggests adding your own variables weenie sce the sppropriste tle y. Plus, House suggests adding yo variable ieaeranp sy ‘model. Would ou say isis Despite its imitations, the path-goal model has already made an important contribu- themostapprprie | tion to the study of leadership by providing. Sriicsutoud | in identifying petentiallyrelevantsitdational variables, Path—goal leadership theory led factors! Explain, to the development of the theory of charismatic leadership in 1976. Baik gall thenny was Conntecratiy broadened leached (oil Hiss referred to It as WOOTTON. You will learn about charismatic tnd values-based leadership in Chapter. Path-goal theory also provides suse way for leaders to think about motivating followers. You will determine your path= goal leadership style in Self-Assessment 4-4 on page 143, which puts together the contingency leadership styles. eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 123 CPN a ee 4, Which path-goal leadership styles does Indra Nooyi tend to use at PepsiCo? Nooyi tends to use the achievement-oriented and participative styles. She sets high standards and expects everyone around her to measure up. She has red. green, and purple pens and uses them liberally to mark up everything that crosses her desk: Her scribbles are legendary, and include the following: “I have never seen such gross incompetence,” and “This is unacceptable," with “unacceptable” underlined three times. Nooyi believes in people; you give them an objective and get them all to buy into it and they can move mountars. She uses input from others, including her second-in-command. whom she treats lie a partner; and her'"Team Pepsi” members. cps State the normative leadershib model styles and the number of variables ‘An important leadership question today is, “When should the manager take charge and nin sul he age group mal the dan n 1973, Vicor Vioor yes the same guy who developed e3 -tancy theory) and Philip Yetton published a decision- tug Sl anwar aon akiog Geen ‘Vroom and Arthur Jago re‘ined the model and expanded it to four models in 1988. In 2000, Victor Vroom published a revised version titled "Leadership and the Decision- Making ent the latest." Th 1s « time-driven and development-driven deci- (decide, consult individu- (ManmneerinaneahlertiensenrosHecrorul fivetendershinepter( ally, consult group, facilitate, and delegate) (peereaarganea ar (even questions/ variables) to wiaxiniizedéesi@ngiSee Exhibit 4.8 to sec how the normative leadership ‘mode! fits HE EGR AigEHey leadership raimeWOHRNAHABIES [tis called a normative model because it provides a sequential setof questions that are rulesi(norms) torfollowto | determine the best leadersh p style forthe given situation. Normative Leadership Model Variables within the Contingency Leadership Franek FOLLOWERS LEADER SITUATION Development-Driven 3. Leader expertise Tine-Driven Decision Medel Decision Made! 2, Importance of commitrent LEADERSHIP STYLES |. Decision sirficance 4, Likelihood of commitment Decide 5, Group support for abjecves Consult individually 6, Group expertise ‘Consult group + 7. Team competence Facitate i Delegate i eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE 24 PART I INDIVIDUALS AS LEADERS ‘To use the normative model, youmust have a specific decision to make, have the author- ity to make the decision, and have specific potential followers to participate in the decision. ‘Vroom identified five leadership styles based on the level of participation in the decision by the followers. Vroom's five leadership styles follow. ‘The leader makes the decision alone and announces it, or sells it, to the followers. : ‘The leader tells followers individually about the problem, gets information and sugges- tions, and then makes the decision. ‘The leader holds a group meeting and tells followers the problem, gets information and suggestions, and then makes the decision, The leader holds a group meeting and acts as a facilitator to define the problem and the limits within which a decision must be made. Leaders seek participation and concurrence on the decision without pushing their ideas. ‘The leader lets the group diagnose the problem and make the decision within stated limits. The role of the leader is to answer questions and provide encouragement and resources. ‘To determine which of the five leadership styles is the most appropriate for a given situ- ation, you answer! the seven variables presented in Exhibit 4.8 are repeated in Exhibit 4.9 and in Exhibit 4.10. ‘We now explain how to answer the questions, based on the variables, when using the two models 1. DeeisiOhSIgHIfICAHTEE How important is the decision to the success of the project or organization? Is the decision of high (H) importance or low (L) importance to the success? When making highly important decisions, leaders need to be involved. 2 nw important is follower commitment to implement the decision? If acceptance of the decision is critical to effective implementation, importance is high (H). If commitment is not important, it’s low (L). When mak- ing highly important commitment decisions that followers may not like and may not rs generally need to be involved in making the decision. 3. eaderepente How ‘much knowledge and expertise does the leader have with this, specific decision? Is expertise high (H) or low (L)? The more expertise the leader has, the less need there is for follower participation. 4. Likelihood-of Commitment, If the leader were to make the decision alone, is the cer- tainty that the followers would be committed to the decision high (H) or low (L)? ‘When making decisions that followers will like and want to implement, there is less need to involve them in the decision. 5. (Group! Suppartfor Objectives. Do followers have high (H) or low (L) support for the team or organizational goals to be attained in solving the problem? Higher levels of participation are acceptable with high levels of support. eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 125 Normative Leadership Time-Driven Model exu@ ences ern eet eee ee ae OOS oe ee ee Pes alee et ee z= =.= J& #| g3 Be 2] Leadershi 2) 22 g|ez] x] ¢| i ° §8 u et] el oF] ad] 2] sole ee| 36] SE) £| 28| $8) g& SS] FS $5138] $3] 65) 83 w [= [= | = | pecite Daegace 4 wf da L [= | consul (Group) cL-[- H | Factnace “ " e 4 L = H [=| consul ndvidualyy ° B we ra L E | Fact é iY L Lia s T [= _| Const (Group) r ae = z at- | -[- | - [oes M H_| Facieace E 4 N L [ uy-]* [=| const nv 2S H = | = [onice H| - | Delegate L ae “e 1_| Facieate 7 oSlS eer: Sure: Adapted fom Orgonzetonal Dynamics 28 Vicor H Voom "Leadership and the Dection. Moking Process. 87. oppor icant nn Akt eer yo ce wt ne pe Da heen nem pn een mse ‘saa ert Sd et Sq nar ovate la epson Cage Lemag soe Seige Nae" a meray abana at 126 PART | INDIVIDUALS AS LEADERS 6. Grolp Expertise: How much knowledge and expertise do the individual followers have with this specific decision? Is expertise high (H) or low (L)? The more expertise the followers have, the greater the individual or group participation can be Normative Leadership Development-Driven Model Eg anes eee ee ne teeter iar eee re ener ‘style for the situation. = 7 = 16 a1 34 3 ; 24 334i zt] g] tl oe hel gi] 2] gk g | £6] 35/33) $21 $5 28 4 | oaegae 8 . «| rachane UL. Pe " Consult (Grou e 4 (crop) 8 wl - : | oes t an El « tye facliate s L - =| Consult (Grou 5 (Gon) A | age T 4 = e ieee be eps fe fee “ : E iH conic ; ne L 1S Source: Adsotet rom Orgonational namics 28 Victor Hoorn, "Leadeshp and the Deoton Motng Process" 66, 2 Is the ability ofthe individuals to work together asa team to solve the ) or low (L)? Wits high team competence, more participation can be used. Notall seven variables/questionsare relevant to all decisions, All seven or as few as two ‘questions are needed to select the most appropriate leadership style in a given situation. The ‘great thing about the models is that they tie the relevant variables together for us as we an- swer the questions to determine the most appropriate leadership style forthe given situation. oppor icant nn Akt eer yo ce wt ne pe Da heen nem pn een mse ‘saa ert Sd et Sq nar ovate la epson Cage Lemag soe Seige Nae" a meray abana at CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 127 WORK Aapleation 4-4 ieaeyee csion you oF your boss has oF had to makes oF was the (eesiontinearnen or develonmert ever Ung Eerie 49 on page 12507 4:10 on page 126, Select th appropriate Parapation st foe fhe stuion Be ure ta sate the questions youanswerad and Frew (H orb) you answered each ‘The first step is actually to Select one OF the Wo Models, based on whether the situation is aaa ‘The characteristics of the See Exhibit 49 for the three characteristies: 1, Rocus. The model is concerned with making effective decisions with minimum cost. Time is costly, as it takes longer for groups to make decisions than the leader alone. 2, 'VaH: Value is placed on time, and no value is placed on follower development, 3. Cfi@HtaHOH, The model has a short-term horizon. See Exhibit 4.10 for these three characteristics: 1. SRGGHB! The model is concerned with making effective decisions with maximum de- ‘velopment of followers. Follower development is worth the cost. i ‘Value is placed on follower development, and no values placed on time. ‘3OrientationsiThe model has long-term horizon, as development takes time, iI MEER corsbines the time-driven and development-driven mod- els into one model, includes 11 variablesiquestions (rather than seven), and has five variable measures (rather than H or L). It guides users through the process of analyz~ ing the situation with definitions, examples, and other forms of help as they progress through the use of the medel. The computerized model is beyond the scope of this course, but you will learn bow to use the time-driven and development-driven models presented here in Exhibits 4.9 and 4.10 and used with Developing Your Leadership Skills Exercise 4-2. driven or development-driven) forthe situation and answer the questions, some of which ‘may be skipped based on the model used and answers to prior questions. The questions are sequential and are presented in a decision-tree format similar to the Fiedler model, in which you end up with the appropriate style to use. If we use both models for the same situations, for some decisions the appropriate style will be the same, and different for others. Research, Criticism, and Applications — ‘The current normative model is based on the research of Vroom and colleagues at Yale University on leaderstriprand decision-making processes, with more than 100,000 manag- cers making decisions.” Numerous studies conducted by others have tested the normative leadership model. In general, the results found in the empirical research have supported the model.° In a summary of prior research, managers—contrary to Fiedler—do change eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE 128 PART | INDIVIDUALS AS LEADERS hei syle to meet the situation. Managers using the ‘WORK Aepaion 4-5 | Cisions not recommended by the model. Higher-level managers use more participation in Tiseaoo | liidelsion making. Womentnanagei tnd use Almostall dt | managers view themselves mee Over the 25 years of research, there has been a move toward higher levels'of participation;, ed sue oh ‘greater empowerment, and use of teams." sesaeaty | The models not without its ries, Voom teats decisions as sgl discrete ei Rest re’ | sod that occurs at one point in tine, but most important decisions are not made that (Senthepniuensy | Way: Important decisions ofter{AVOIVe MUILpIe miBetings With/WarOUS|pEOple! Thus, the speatctehavoryes | leader may have to use a sequence of different decision procedures with different people cee at different times before the final decision is made. Also, the leader is assumed to have ‘to identify behavior the sh needed to use each of the five leadership styles, and the leader's skills are not ‘you will not use. included in the model. The Vroom and Vroom Yetton/Jago model tend: ic is not very popu- lar with managers because they find it cumbersome to select models and to pull out the model and follow a seven-question decision tree every time they have to make a decision. You will determine your major normative leadership style in Self-Assessment 4-3 oon pages 138, and you will learn how to use the models in Developing Your Leadership Skills Exercise 4-1 and 4-2, CN en ee 5. Which normative leadership styles does Indra Nooyi tend to use at PepsiCo? Based on the decision to be made, Nooyi consults and facilitates others. As chairman and CEO, she has the final say in ‘major decisions affecting PepsiCo. However she also delegates some decisions down the chain of command that involve specific products in American and international markets. Discuss the major similarities and differences between the behavioral and contingency leadership theories. ‘Compare and contrast four major differences among the four contingency leadership models. Putting the Behavioral and Contingency Leadership Theories Together Exhibit 4.11 isa review of different words that are used to describe the same two leader ship behavior concepts. It includes the number of leadership styles based on the two be- havior concepts and the different mmes given to the leadership styles. We should realize eprom nny ktm oer a ee in age Denese ceo pn ei der aera ty Sgn toe aa ome Caps Lr ara Se nn oe yaa pass EE CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 129 that all the leadership styles are based on the same two behavior concepts. We developed Exhibits 4.11 and 4.12 to put all these contingency leadership theories together with be- havioral leadership styles. These exhibits should help you better understand the similari ties and differences betweer these theories. List which leadership models are prescriptive and descriptive, and explain why they are classified as su Prescriptive and Descriptive Models ‘One last difference between models, not shown in any exhibits, is the difference be- tween prescriptive and descriptive models. The contingency leadership model and the normative leadership model are prescriptive leadership models: They tell the user exactly which style fo use in a given situation. However, the continuum and path goal leadership models are descriptive leadership models: They identify contin- gency variables and leadership styles without specifying which style to use in a given situation. In other words, users of the descriptive model select the appropriate style based more on their own judgment. Look at all the leadership models and you will see what we mean, ex™@ Names Given to the Same Two Leadership Behavior Concepts eprom nny ktm oer a ee in age Denese ceo pn ei der aarp cer anon el atop ape Loma oe oe Gea" ear a feats NUMBER OF LEADERSHIP SIVLES BASED ON LEADERSHIP BEHAMIOR/STYLE eee Behavior Thor Universiy oFlowa ‘uroeratie Democratic 2 Uniertyof Michigan | _Job-cenered Employeecentered| 2 Ohio Stare Universiey | Sereture Consideration | 4 Leadentip Grd Concern for producion | Concern for people $ Conroy Thor: Contingency model | Task Relationship 2 Leadership continuum | Bos-cenered Subordinatecencred 7 + Path-gol model Directive Supportive 4 ie ‘Normative model ‘ucoerate Goup 5 i 3 PART I INDIVIDUALS AS LEADERS 130 four stedea 9 Saampdivo? oma] amunde drain (9) sonn>afa0 sey vodehs drag (6) je sourneduy (2) woseed (i) dais Sppoy VAN Su, 22 (pip Fepon dusiopeey suosoaq, ais diysiepesy | 40 uanig-queuidojareq, an83pq aye oes “ypsvo5, apoaq aAyeULON, (Cra yon muoigre [eau ‘aunpruts 9s) ens e5 gpl souewioyeg | as dusopeer FPPOW RoO-AReg sewupioas| smedones| —exnoddng | awowsranpy JeP0}4 wnrenvo> souewioyeg| ais dusepeny ste 09 seh eet] epena | ysi9p857 awed VORA samanuis se suORE FRO dysepe sumo ones si104p9Pe7 uysuone sei] Gustiquo SROSHL JONIONUNOD TonEpRLED | UOREIPRUES | _uEREISBRIES | UERRIRPRIES no peas BiH | eB eumnas | me anon 2101 | amionas mo7 an Hi] nares oMo. paseiay seo} PaRURGeT| VERDI N aWODLNO 3ONVHD ‘STISVINVA ‘SaMO3HL 3.4153 | ADNSONILNOD | ADNSONILNOD ST1ALs ainsuzava1 aWHoIAvHas apc at Tag or a Ts QQ) NETTIE eprom nny ktm oer a ee in age Denese ceo pn ei der ‘saa ert Sd et Sq nar ovate la epson Cage Lemag soe Seige Nae" a meray abana at CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 131 ‘Many managers prefer prescriptive models; this is a reason why they are more com- monly used in organizational leadership training programs than the descriptive leader- ship models. On the other hand, many academic researchers scoff at prescriptive models, especially simple ones, and prefer the more complex descriptive models based on solid theoretical foundations. Explain substitutes and neutralizers of leadershi Leadership Substitutes Theory ‘The four leadership theories presented assume that some leadership style will be effective in each situation. However, in keeping with contingency theory, there are factors outside the leader's control that have a larger impact on outcomes than do leadership actions. ‘Contingency factors provide guidance and incentives to perform, making the leader's role ‘unnecessary in some situations. Steven Kerr and John Jermier argued that certain situ- ational variables prevent leaders from affecting subordinates’ followers’) attitudes and behaviors. Substitutes for leadership include characteristics of the subordinate, task, ‘and organization that replace the need for a leader or neutralize the leader's behavior. This is the motivation for some organizations adopting self-managed teams, Self-managed teams are discussed in Chapter 8. Substitutes and Neutralizers ‘Thus, substitutes for leadership make a leadership style unnecessary or redundant. Highly skilled workers do not need a leader’ task behavior to tell them how to do their job. New- tralizers reduce or limit the effectiveness of a leader's behavior. For example, managers who are not near an employee cannot readily give task-directive behavior. See Exhibit 4.13 to see how the substituies for leadership fit into the framework of contingency lead: ership variables. Then, read a description of each substitute. Substitutes for Leadership Variables within the Contingency Leadership Framework FOLLOWERS, LEADER SITUATION. Subordinates None Tak Organization ie The following variables may substitute or neutralize leadership by providing task- oriented direction and/or people-oriented support rather than a leader. 1, Characteristics of followers. Ability, knowledge, experience, training, Need for inde- pendence. Professional orientation. Indifference toward organizational rewards. 2. Characteristics of the task. Clarity and routine. Invariant methodology. Provision of own feedback concerning accomplishment. Intrinsic satisfaction for completing the task. 3. Characteristics of the organization. Formalization (explicit plans, goals, and areas of responsibility). Inflexitility (rigid, unending rules and procedures). Highly spe fied and active advisory and staff functions. Closely knit, cohesive work groups. ‘Organizational rewards not within the leader’s control. Spatial distance between leader and followers. eprom nny ktm oer a ee in age Denese ceo pn ei der aarp cer anon el atop ape Loma oe oe Gea" ear a feats 132 PART I INDIVIDUALS AS LEADERS Leadership Style Leaders can analyze their situation and better understand how these three characteristics substitute or neutralize their leadership style and thus can provide the leadership and fol- lowership most appropriate for the situation. The leader role is to provide the direction ‘and support not already being provided by the task, group, or organization. The leader fills the gaps in leadership. Like Fiedler suggested, leaders can change the situation rather than their leadership style. ‘Thus, substitutes for leadership can be designed in organizations in ways to complement ‘existing leadership, to act in leadership absence, and to otherwise provide more compre- hensive leadership alternatives. A‘ter all, organizations have cut middle-management numbers, and something has to provide the leadership in their absence. One approach is to make the situation more favorable for the leader by removing neutralizers. Another way is to make leadership less important by increasing substitutes such as job entich- ‘ment, self-managing teams, and automation, Research, Criticism, and Applications A meta-analysis was conducted to estimate bivariate relationships among leadership be- haviors, substitutes for leadership, followers’ attitudes, and role perceptions and perfor- ‘mance, and to examine the relative strengths of the relationships among these variables. It was based on 435 relationships obtained from 22 studies containing 36 independent samples. Overall, the theory was supported. However, the theory does have its critics. As with the other theories, results are mixed, Research has found support for some aspects of the theory, but other aspects have not ‘been tested or supported. Critics point out that for many of the substitutes, the behavior of the formal leader is merely replaced by similar leadership behavior carried out by peers ‘or other informal leaders—so leadership still exists anyway. Applications of leadership substitute theory include its strong evidence that situational variables can directly affect job satisfaction and motivation. As already discussed, chang ing the situation is a major applicat on of substitute theory. “To close this chapter, complete Self-Assessment 4-2 to determine how your personality influences your use of contingency leadership theory. Your Personality and Contingency Leadership Theories In Sei Assessment 4-1 on page 113 were you more task or relationship oriented? Your being more task- or ‘elationship-oriented is based very much on your personalty ‘Based on sungency.f you have a high need for power you may tend to be more task oriented. Based on agree- ableness if you are a real people” person with a high neec for afation, you may tend to be more relationship ‘oriented. Based on conscientiousness,if you have a high need for achievement, you may tend to be more task ‘oriented to make sure the job gets done, and done your way. Based on your personality profile, does it match Fiedle's contingency leadership theory, as presented in Self-Assessment |? If you have a higher need for power do you tend to use the autocratic (I=3) leadership continuum styles the directive and achievement path-goal ladershp styles, and then decide and consult norma- ‘hee (eadefatis seat If you have a higher need for afiiation, do you tend to use more participative leadership continuum styles, the supportive and participative path-goal styles, and the facilitate and delegate normative leadership styles) eprom nny ktm oer a ee in age Denese ceo pn ei der aarp cer anon el atop ape Loma oe oe Gea" ear a feats CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES 133 You will better be able to understand which leadership style you do tend to use when you complete Self Assessment 4-3 on page 138, "Determining Your Preferred Normative Leadership Style." The leadership con- ‘tuum and path-goal styles are explored in Self-Assessment 4-4 on page 143.[ts important to realize that your personality does affect your leadership style. However, you can use the leadership style that is most appropriate ‘or the situation. You will learn how in Developing Your Leadership Skils Exercises 4-1 and 4-2. “Take It To The Net”. Access student resources at [Link], Search for Lussier, Leadership 6¢ to find student study tools. Chapter Summary Cre eeeetanay eareeet ee nena toe er ee © sexta tne major diference between behavioral and Pamir cedar easter eta Inte ed cee ae perc Sete Behavioral theories attempt to determine the one best. leadership style for all situations. Contingency leadersnip rested care ine sea eer ee Teale efi for all slantons Uabadoral acon cone bated ee eee eer ee styles are used in contingency leadership models, eS rere ee eeeeeeeeenreey Seta Ee ee geyser pales earn pe acta atioetie arc eer lowe eae le co ee oe ede ae ala tahiotand apariece The lowers oe feed en cp ate eden he a eral or Soe eee ee GD cere cer tgs ender reel rye mid ceries eee ree ieee setae alee aid reconatip, The fertables cine (I) chlo {Slower rdsionship (2) the leadership sfer—taskor Tolzonetipy ard (3) the stvatin-—tark stricture ond ees © seats the leadership contimum model major eee The two major continuum leadership model styles are el eecrear eeecareeerae et ee ate include (I) the boss, 2) the subordinates, and (3) the situation (time). or aery eelpete eel eer eter merece fe Seer peepee alee eure acrerer eel Variables used to determine the leadership style are the subordinate and the environment. ‘State the normative leadership model styles and. the number of variables. ‘The five normative leadership model styles are decide, consult individually, consult group, facilitate, and delegate. ‘The model has seven variables. Discuss the major similarities and differences between the behavioral and contingency leader- ship theories. “The primary similarity between these theories is that their leadership styles are all based on the same two leadership concepts although they have different names. ‘The major ference i thatthe contingency leadership modals ident contingancy variables an which to sale the most appropriate behavioral leadership style for a sgron sialon Compare and contrast four major differences among the four contingency leadership models. Using Exhibit 4.12 0n page 130, note that the firs dif ference Is in the number of leadership styles used in the four models, which ranges from 2 (contingency to 7 (cominuurn).The second diference i inthe number ‘of contingency variables used to select the appropriate leadership style, which ranges from 2 (path-goal) to 7 (normative). The third diffrence is what is changed ‘when using the model. When using the contingency 25 example for emulation or use in a given model the leader changes the siation withthe other three mod- ‘ls, the leader changes behavior (leadership =tyle) The lat difference isthe desired outcome. Contingency and ‘continuum leadership models focus on performance and the path-goal model adds jb satisfaction The normative model fozues on decisions copper ices arn Alken oer no ee win nage Dehn gece pn es er aera tay Sgr cn ae tase as ems Cabs Lr eae be in oe i pans 134 PART I INDIVIDUALS AS LEADERS © List which leadership models are prescriptive and descriptive, and explain why they are classified as such, “The contingency and normative leadership models are prescriptive models, because they specify exactly which leadership style to ute in a given situation. The contin- tuum and path-goal leadership models are descriptive Key Terms ‘models, Because users select the appropriate leadership style fora given situation based on their own judgment. Explain substitutes and neutralizers of leadership. Substieutes for leadership include characteristics of the subordinate, task, and organization that make leadership behavior unnecessary or redundant: neutralizers reduce ‘or limit the effectiveness of a leader's behavior. contingency leadership model, 12 descriptive leadership models, 129 leadership continuum model, 117 leadership model, 110 Review Questions normative leadership model, 123 path-goal leadership model, 19 prescriptive leadership models, 129 substitutes for leadership, [31 © ‘ats the citerence between a theory and a eel OD arisen een eee ee oe ofthe thewie ° How does the global economy relate to contingency leadership ‘What are the two contingency leadership theory leader ship sles? De the three stuationalfavrablenes factors of the con ‘ingency leadership model (see Exhibit 43 on page 115) fit in ony one ofthe thee variables (lower leader stu- ation) oF all contingency leadership varables (cee Ext. [Link] page 110) Explain Critical-Thinking Questions Wet teams tet reerres clita extigg eee ee eee se cf te path-gal mode? What are the three subordinate and environment sit ational factors of the path-goal model? ‘What are the path-gosl theory leadership styles! ‘What are the normative leadership theory leadership styles? What isthe primary dliference between the contingency leadership model and the other leadership models (lead- ership continuum, path-goak and normative leadership)! ‘What are the three substitutes for leadershig? e@ e000 “The following ctical-hntng questions can be used for class

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