Chapter 14

LEADING &
LEADERSHIP DEVELOPMENT
 LEARNING OBJECTIVES

Takeaway 1 The nature of leadership

Takeaway 2 Leadership traits & behaviors
Takeaway 3 Contingency approaches to leadership
Takeaway 4 Personal leadership development
Takeaway 1 The nature of leadership

1. Leadership and Power

2. Leadership and Vision
3. Leadership as Service
 Takeaway 1 The nature of leadership

• Leadership: the process of inspiring others to work hard

to accomplish important tasks.
 Takeaway 1 The nature of leadership

Leading –
to inspire effort
• Communicate the
vision
• Build enthusiasm
• Motivate commitment
Planning – Controlling –
hard work
to set the direction to ensure results
Organizing –
to create structures

Fig 14.1 Leading viewed in relationship to the other management

 1. Leadership & power

• Leadership begins with the ways a manager uses power to

influence the behavior of other people.

• Power is the ability to get someone else to do something

you want done, or to make things happen the way you want.

• Anyone in a managerial position theoretically has power, but

how well it is used will vary from one person to the next.
 1. Leadership & power (cont.)

• Leaders gain power from both the

positions they hold and their personal
qualities.
Reward power

Position power Coercive power

Legitimate power
Leaders gain power from both ...
Expertise power
Personal power
Reference power
 1. Leadership & power (cont.)

Position power

• Reward power: the capacity to offer something of value

– a positive outcome – as a means of influencing another
person’s behaviour.
• Use of incentives: pay raises, bonuses, promotions,
special assignments, & verbal/written compliments.
 1. Leadership & power (cont.)

Position power (cont.)

• Coercive power: the capacity to punish or withhold

positive outcomes as a way to influence the behaviour of
other people.
• Use of threatening with verbal reprimands, pay penalties,
& termination.
 1. Leadership & power (cont.)

Position power (cont.)

• Legitimate power: the right by virtue of one’s organizational

position & status to exercise control over persons in
subordinate positions.
 1. Leadership & power (cont.)

Power of the POSITION:

Based on things managers can offer to others

Rewards: “If you do what I ask, I’ll give you a reward.”

Coercion: “If you don’t do what I ask, I’ll punish you.”

Legitimacy: “Because I am the boss, you must do as I ask.”

 1. Leadership & power (cont.)

Personal power

• Expert power: the ability to influence the behaviour of

other people through special skills, knowledge, &
information.
 1. Leadership & power (cont.)

Personal power (cont.)

• Referent power: the capability to influence the behaviour of

other people because they admire you & want to identify
positively with you.
• Reference is a power derived from charisma or interpersonal
attractiveness.
 1. Leadership & power (cont.)

Power of the PERSON:

Based on how managers are viewed by others

Expertise – as a source of special knowledge & information.

“You should do what I want because of what I know.”

Reference – as a person with whom others like to identify.

“You should do what I want in order to maintain a positive, self-
defined relationship with me.”
 2. Leadership & vision

• Visionary leadership brings to the situation a clear sense of

the future & an understanding of how to get there.
› having a clear vision
› communicating the vision
› getting people motivated & inspired to pursue the vision
in their daily work
 3. Leadership as service

• Servant leadership: serving others & helping them fully use

their talents so that organizations benefit society.

• Empowerment: the process of allowing others to exercise

power & achieve influence within the organization.
(providing them with the information, responsibility, authority,
& trust to make decisions & act independently.)
Takeaway 2 Leadership Traits and Behaviors

1. Leadership Traits
2. Leadership Behaviors
3. Classic Leadership Styles
 1. Leadership traits

Q: What personal traits & characteristics are associated

with leadership success?
 Drive • Have high energy; display initiative; are tenacious

Self-confidence • Trust themselves & have confidence in their abilities

Creativity • Are creative & original in their thinking

Cognitive ability • Have the intelligence to integrate & interpret information

Job-relevant knowledge • Know their industry & its technical foundations

Motivation • Enjoy influencing others to achieve shared goals

Flexibility • Adapt to fit the needs of followers & the demands of situations

Honesty & integrity • Are trustworthy; are honest, predictable & dependable
 2. Leadership behaviours

Q: How is leadership success affected by the ways leaders

behave when engaging with followers?

(how leaders behave when dealing with followers?)

 • Plans & defines the work to be done
• Assigns task responsibilities
(1) concern for task • Sets clear work standards
• Urges task completion
• Monitors performance results

• Acts with warmth & supportiveness

toward followers
• Maintains good social relations with them
(2) concern for people • Respects their feelings
• Is sensitive to their needs
• Shows trust in them
 3. Classic leadership styles

Leadership style: the recurring patterns of behaviours exhibited by

leaders.
 High Country club manager Team manager
Human relations leader Democratic leader
Focuses on people’s needs, Focuses on building participation
Concern for people

building relationships & support for a shared purpose

Middle-of-road manager
Focuses on balancing work
output & morale
Impoverished manager Authority-obedience manager
Laissez-faire leader Autocratic leader
Focuses on minimum effort to get Focuses on efficiency of tasks &
Low

work done operations

Low Concern for production High

Fig 14.2 Blake & Mouton’s leadership grid

 • emphasizes task over people
Autocratic style • retains authority & information
• acts in a unilateral, command-and-control fashion.

Human relations
• emphasizes people over task.
style
• shows little concern for the task
Laissez-faire • lets the group make decisions
style • acts with a “do the best you can & don’t bother
me” attitude.
• committed to both task & people
• tries to get things done while sharing information
Democratic style • encourages participation in decision making
• helps others develop their skills & capabilities.
Takeaway 3 Contingency Approaches to Leadership

1. Fiedler’s Contingency Model

2. Hersey-Blanchard Situational Leadership Model
3. Path–Goal Leadership Theory
4. Leader-Member Exchange Theory
5. Leader-Participation Model
 1. Fiedler’s contingency model

Q: Which leadership styles work best in the different types of

situations that leaders face?
• Good leadership depends on a match or fit between a person’s
leadership style & situational demands.
• Fiedler believed that leadership style is part of one’s personality &
is difficult to change.

Þ Leadership success comes from putting out existing styles to work

in situations for which they are the best fit.
 1. Fiedler’s contingency model (cont.)

Understanding leadership styles & situations

 Least-preferred coworker scale (LPC scale) describes tendencies to

behave either as a
› task-motivated leader (low LPC scale); or,
› relationship-motivated leader (high LPC scale)
 1. Fiedler’s contingency model (cont.)

Understanding leadership styles & situations (cont.)

 Key to understanding leadership situations:

1. Leader-member relations (good or poor) measures the degree to
which the group supports the leader.
2. Task structure (high or low) measures the extent to which task
goals, procedures, & guidelines are clearly spelled out.
3. Position power (strong or weak) measures the degree to which the
position gives the leader power to reward & punish subordinates.
 1. Fiedler’s contingency model (cont.)

Matching leadership style & situation

Each style seemed to work best when used in the right situation.
› Task-motivated style – this leader will be most successful in
either very favorable (high-control) or very unfavorable (low-
control) situations.
› Relationship-motivated style – this leader will be most
successful in situations of moderate control.
 Best fit = task-motivated leader

Moderate-control
High-control situations Low-control situations
situations

Leader-member relations Good Good Poor Poor

Task structure High Low Low High Low
Position power Strong Weak Strong Weak Strong Weak Strong Weak
I II III IV V VI VII VIII

Best fit = relationship-motivated leader

Fig 14.3 Predictions on style-situation fit from Fiedler’s contingency leadership

2. Hersey-Blanchard situational leadership model

Q: How should leaders adjust their leadership styles according to the

task readiness of followers?

• Hersey-Blanchard situational leadership model suggests that

successful leaders do adjust their styles.
• They believe that leadership styles should be adjusted as
followers change over time.
 • Allowing the group to take responsibility for
Delegating
task decisions (a low-task, low-relationship
(high-readiness followers) style)

Selling • Explaining task directions in a supportive &

(moderate-to-high- persuasive way (a high-task, high-relationship
readiness followers) style)

Participating • Emphasizing shared ideas & participative

(low-to-moderate- decisions on task directions (a low-task, high-
readiness followers) relationship style)
• Giving specific task directions & closely
Telling
supervising work (a high-task, low-
(low-readiness followers) relationship style)
 High Participating Selling
Share ideas Explain decisions

Relationship behaviour
------------------------- -------------------------

Support required
Followers able, Followers unable,
unwilling, insecure willing, confident

Delegating Telling
Turn over decisions Give instructions
------------------------- -------------------------
Followers able, Followers unable,
Low willing, confident unwilling, insecure

Low Task behaviour High

Guidance required

Figure 14.4 Leadership implications of the Hersey-Blanchard situational leadership

 3. Path-goal leadership theory

Q: How can leaders use alternative leadership styles to add value in

different types of situations?

• The path-goal theory advanced by Robert House seeks the right

fit between leadership style & situation.
• House believed that a leader can use all of the following (next slide)
leadership styles & actually shift back & forth among them.
 • Letting followers know what is expected; giving
Directive directions on what to do & how; scheduling work to be
leadership done; maintaining definite standards of performance;
clarifying the leader’s role in the group.

• Doing things to make work more pleasant; treating team

Supportive members as equals; being friendly & approachable;
leadership showing concern for the wellbeing of subordinates.

• Setting challenging goals; expecting the highest levels of

Achievement performance; emphasizing continuous improvement in
-oriented performance; displaying confidence in meeting high
leadership standards.

• Involving team members in decision making; consulting

Participative with them & asking for suggestions; using these
leadership suggestions when making decisions.
 Follower contingencies
• Ability
• Experience
• Focus of control

Leadership styles
• Directive
Leader effectiveness
• Supportive
Value added to situation
• Participative
• Achievement-oriented

Environmental contingencies
• Task structure
• Authority system
• Work group

Fig 14.5 Contingency relationships in House’s path-goal leadership theory

 3. Path-goal leadership theory (cont.)

Path-goal contingencies
• When job assignments are unclear, directive leadership helps to
clarify task objectives & expected rewards.
• When workers’ self-confidence is low, supportive leadership can
increase confidence by emphasizing individual abilities & offering
needed assistance.
• When task challenge is insufficient in a job, achievement-oriented
leadership helps to seek goals & raise performance aspirations.
• When incentives are poor, participative leadership might clarify
individual needs & identify appropriate rewards.
 3. Path-goal leadership theory (cont.)

Substitutes for leadership

Substitutes for leadership: aspects of the work setting & the people
involved that can reduce the need for active leader involvement.
› follower characteristics: ability, experience, & independence.
› task characteristics: the presence or absence of routine & the
availability of feedback.
› organizational characteristics: clarity of plans & formalization of
rules & procedures.
4. Leader-member exchange theory (LMX theory)

Q: How do in-group & out-group dynamics influence leader-follower

relationships?
LMX theory notices the tendency of leaders to develop “special”
relationships with some team members.
• In-group members enjoy special & trusted high-exchange
relationships with the leaders & often get special rewards,
assignments, privileges, & access to information.
• Out-group members have a low-exchange relationship & maybe
marginalized, ignored, & even get fewer benefits.
 4. Leader-member exchange theory (cont.)

• In-group members enjoy special & trusted high-exchange

relationships with the leaders & often get special rewards,
assignments, privileges, & access to information.
Þ It’s motivating & satisfying to receive such favorable treatments.

• Out-group members have a low-exchange relationship & maybe

marginalized, ignored, & even get fewer benefits.
Þ It can be frustrating to receive fewer rewards, less information, &
little or no special attention.
Followers Followers
defined into Leader- defined into
“out-group” member “in-group”
exchange
relationships

Perceptions of
followers
Compatibility
Competency
Personality

“-” “+”
Fig 14.6 Elements of leader-member exchange (LMX) theory
5. Leader-participation model (Vroom-Jago model)

Q: How should leaders make decisions in different types of problem

situations?

The Vroom-Jago leader-participation model links leadership

success with use of alternative decision-making methods.
 5. Leader-participation model (cont.)

Leader Who has information & expertise? Followers

Acceptance & commitment

No Yes
critical for implementation?

High Time pressure for decision making? Low

Authority decision Consultative decisions Group decisions

Fig 14.7 Leadership implications of Vroom-Jago leader-participation

5. Leader-participation model (Vroom-Jago model)

• Authority decision is made by the leader & then communicated

to the group.

• Consultative decision is made by the leader after gathering

information & advice from others.

• Group decision is made by the group with the leader’s support

as a contributing member.
5. Leader-participation model (Vroom-Jago model)

A leader’s choice among alternative decision-making methods is

governed by 3 factors:
1. Decision quality – based on who has the information needed
for problem solving.
2. Decision acceptance – based on the importance of follower
acceptance to the decision’ eventual implementation.
3. Decision time – based on the time available to make &
implement the decision.
5. Leader-participation model (Vroom-Jago model)

 Authority decision works best when:

› Leaders have the expertise needed to solve the problem & are
confident & acting alone;
› Followers are likely to accept & implement the leader’s decision;
› There is little or no time available for group discussion.
 Consultative decision & group decision work best when:
› Leaders lack the expertise & information needed to solve the problem;
› The problem is unclear;
› Follower acceptance is uncertain but necessary for implementation;
› Adequate time is available.
 • The manager decides how to solve the problem &
Decide alone communicates the decision to the group.
• The manager makes the decision after sharing the
Consult individually problem & consulting individually with group
members to get their suggestions.
• The manager makes the decisions after convening
Consult with group the group, sharing the problem, & consulting with
everyone to get their suggestions.
• The manager convenes the group, shares the
Facilitate group problem, & facilitates discussion to make a decision.

• The manager convenes the group & delegates

Delegate to group authority to define the problem & make the decision.
Takeaway 4 Personal Leadership Development

1. Charismatic and Transformational Leadership

2. Emotional Intelligence and Leadership
3. Gender and Leadership
4. Moral Leadership
5. Drucker’s “Old-Fashioned” Leadership
1. Charismatic & transformational leadership

• Charismatic leaders inspire others in exceptional way.

• Transformational leadership is inspirational & arouses

extraordinary effort & performances.
• Transformational leaders use their personalities to inspire
followers; requires both having a compelling vision of the
future & the ability to communicate that vision in ways that
cause others to work hard to achieve it.
2. Emotional Intelligence (EI) & leadership

• Emotional intelligence: an ability to understand emotions in

yourself & others, and use this understanding to handle social
relationships actively.
 Being willing to work hard for reasons
other than money & status
Motivated &
persistent

High High social

self-awareness awareness
The ability to understand The ability to understand
our own moods & The the emotions of others & to
emotions, & to understand use this understanding to
their impact on our work & emotionally better relate to them
on others intelligent
leader

Good relationship management

Good self-management
The ability to establish rapport with
others & to build social capital The ability to think before we act & to
through relationships & networks control otherwise disruptive impulse
 3. Gender & leadership

3 background points:

1. Gender similarities hypothesis: males & females are very

similar to one another in terms of psychological properties.
2. Both men & women can be equally effective as leaders.
3. Men & women are sometimes perceived as using
somewhat different styles, & perhaps arriving at leadership
success from different angles.
 3. Gender & leadership (cont.)

• Men: take-charge leaders

• Women: take-care leaders

• Interactive leadership are strong communicators &

act democratic & participative with followers.
 4. Moral leadership

• Moral leadership is always “good” & “right” by ethical standards.

Leaders with integrity means acting in an honest, credible, &
consistent manner in putting one’s values into action.
• Moral overconfidence is an overly positive view of one’s
strength of character. “I’m a good person, so I can’t be wrong.”

• Authentic leadership activates positive psychological states to

achieve self-awareness & positive self-regulation.
5. Drucker’s “old-fashioned” leadership

Drucker’s straight talk on leadership:

› Define & communicate a clear vision.
› Accept leadership as a responsibility, not a rank.
› Surround yourself with talented people.
› Don’t blame others when things go wrong.
› Keep your integrity; earn the trust of others.
› Don’t be clever, be consistent.
Case study
chapter 14

ZAPPOS

They did it with

humor
 END OF
CHAPTER 14