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Management

Fourteenth Edition, Global Edition

Chapter 16
Leadership
(Leading)

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Learning Objectives
16.1 Define leader & leadership.
16.2 Compare & contrast early theories of
leadership.
16.3 Describe the contingency theories of
leadership.
16.4 Discuss contemporary issues affecting
leadership.
16.5 Describe 21st century views of leadership.

“ What is an effective leader? ”


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Leaders & Leadership
Leader
= A person
= Someone who can influence others & who has
managerial authority

Leadership
= What leaders do
= The process of influencing a group to achieve
goals

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Early Leadership Theories

A) Leadership Traits
 This theory focused on the leader.

B) Leadership Behaviors
 This theory focused on the interactions
between leader & his members.

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(A) Leadership Traits
 The earliest research tried to identify a set of
personal traits of leaders but failed.
 Personal traits = Personal characteristics
(e.g.: physical stature, appearance, social
class, emotional stability, speech fluency,
sociability)

 Later research successfully identified the


leadership traits of leaders.
 Leadership traits = Characteristics of the
leading process.
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8 Leadership Traits
Trait Description
Drive  High effort level; high desire for achievement
 Ambitious & show initiative
 Tirelessly persistent in their activities
Desire to  Strong desire to influence & lead others
lead  Willing to take responsibility
Honesty Build trusting relationships with followers by:
&  being truthful
integrity  showing high consistency between word &
deed
Self- Convince followers that their goals & decisions
confidence are right by:
 Absence of self-doubt
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 Showing self-confidence
8 Leadership Traits
Trait Description
Intelligence  Intelligent to gather/synthesize/interpret
information
 Able to create visions, solve problems, &
make correct decisions.
Job-relevant  High degree of knowledge about the
knowledge company/industry/ technical matters
 Use knowledge to make well-informed
decisions & to understand the implications of
those decisions.
Extraversion  Energetic & lively
(Extrovert)  Sociable, assertive, & rarely silent or
withdrawn.
Proneness to  Experience negative feeling about personal
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guilt wrongdoing & wrongdoing of his followers.
(B) Leadership Behaviors

i) University of Iowa studies

ii) Ohio State studies

iii) University of Michigan studies

iv) Managerial Grid

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(i) University of Iowa Studies
 Autocratic style = A leader who dictates
work methods, makes unilateral decisions,
& limits employee participation
 Democratic style = A leader who involves
employees in decision-making, delegates
authority, & uses feedback to coach
employees
 Laissez-faire style = A leader who lets the
group make decisions & complete the work in
whatever way it sees fit
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(ii) Ohio State Studies
 Initiating structure = A leader defines his role &
the roles of group members in attaining goals (i.e.
he tries to organize work & work relationships to
meet goals)
 Consideration = A leader with mutual trust with
his group members & respect their ideas &
feelings (i.e. he is friendly, approachable, fair &
helps members with personal problems)
 High–high leader = A leader high in both
initiating structure & consideration behaviors
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(iii) University of Michigan Studies

 Employee oriented = A leader who


emphasizes interpersonal relationships

 Production oriented = A leader who


emphasizes task aspects of the job

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(iv) The Managerial Grid
Managerial grid = A 2-dimensional grid for
appraising leadership styles

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(B) Leadership Behaviors
Study Conclusion
i) University Democratic style of leadership was
of Iowa most effective, although later studies
showed mixed results between
democratic & autocratic styles
ii) Ohio State High-high leaders achieved high
subordinate performance &
satisfaction, but not in all situations.
iii) University Employee-oriented leaders were
of Michigan associated with high group productivity
& higher job satisfaction.
iv) Managerial Leaders performed best with team
Grid management.
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Contingency Leadership Theories
Contingency theories:
 Focus on situational influences on
leadership styles
 Try to answer the “if-then” contingencies
(If this is the situation, then what is the best
leadership style to use?)
A) Fiedler’s Contingency Model
B) Hersey & Blanchard’s
Situational Leadership Theory
C) Path-Goal Model
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(A) Fiedler’s Contingency Model
This theory proposed that effective group
performance depends on the proper match
between leadership style & the degree the leader
can control & influence the situation.

Leadership
Style

Group
Performance

Situation
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(A) Fiedler’s Contingency Model
Leadership
Relationship oriented Style
OR
Group
Task oriented Performance

Measured using Situation


“least-preferred
coworker” (LPC)
questionnaire.
Influenced by these factors:
 Leader-member
relationship
 Task structure
 Position power
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(A) Fiedler’s Contingency Model
Leadership style:
 If a leader describes the least-preferred worker
using positive adjectives
→ The leadership style is relationship oriented.

 If a leader describes the least-preferred worker


using negative adjectives
→ The leadership style is task oriented.

* Some leaders might fall between these 2 orientations.


** Leadership style is fixed.

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(A) Fiedler’s Contingency Model
Situational factors:
 Leader–member relations = The degree of
confidence, trust & respect employees have for
their leader (either good or poor).
 Task structure = The degree to which
job assignments are formalized & structured
(either high or low).
 Position power = The degree of influence a
leader has over hiring, firing, discipline,
promotion, salary increases (either strong or
weak).
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(A) Fiedler’s Contingency Model

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(B) Hersey & Blanchard’s
Situational Leadership Theory (SLT)

 This theory focuses on followers’


readiness.

 Readiness = The extent to which a follower


has the ability & willingness to accomplish a
specific task.

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(B) Hersey & Blanchard’s
Situational Leadership Theory (SLT)
Leadership styles:

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(B) Hersey & Blanchard’s
Situational Leadership Theory (SLT)

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(C) Path-Goal Model
 This theory that says the leader’s job is to
assist followers in attaining their goals & to
provide direction or support needed to ensure
that their goals are compatible with the goals
of the group or organization.
 “Path-goal” → Effective leaders should
remove the roadblocks & pitfalls so that
followers have a clearer path to achieve goals.
* Leadership style is flexible.
** May display any or all leadership styles.
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(C) Path-Goal Model

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(C) Path-Goal Model
Leadership styles:

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(C) Path-Goal Model
Situational Factors:

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(C) Path-Goal Model

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Contemporary Leadership Theories

A) Leader-Member Exchange (LMX)


theory
B) Transformational-Transactional
Leadership
C) Charismatic-Visionary Leadership
D) Authentic Leadership
E) Ethical Leadership
F) Team Leadership

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(A) Leader-Member Exchange
(LMX) theory
 This theory says leaders create “in-groups” &
“out-groups”.
 Leaders implicitly categorize a follower as an “in”
or an “out”.
 Leaders reward followers in the “in-group”
because they are expected to perform best.
 Followers in the “in-group” will have higher
performance ratings, less turnover, & greater job
satisfaction.

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(B) Transformational-Transactional
Leadership
 Earlier leaders are viewed as transactional leaders
who lead primarily by using social exchanges/
transactions. They guide/motivate followers to achieve
goals by exchanging rewards for their productivity.
 Later, transformational leadership developed from
transactional leadership.
 Transformational leaders stimulate & inspire
(i.e. transform) followers to achieve extraordinary
outcomes. They are more than charismatic because
followers are able to question leaders’ views.
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(C) Charismatic-Visionary Leadership
Charismatic leader = Enthusiastic, self-confident
leaders whose personality & actions influence people
to behave in certain ways.
 Have a vision
 Able to articulate vision
 Willing to take risk to achieve vision
 Sensitive to environmental constraints & follower
needs
 Extraordinary behaviors
Visionary leader = Leaders who are able to create
& articulate a realistic, credible & attractive vision of
the future that improves upon the present situation.
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(D) Authentic Leadership
Authentic leaders who know who they are, know
what they believe in, & act on those values/beliefs
openly & candidly.

(E) Ethical Leadership


Ethical leaders put public safety ahead of profits,
hold blameworthy employees accountable, &
creates a culture in which employees feel that they
could & should do a better job.

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(F) Team Leadership
 Team leaders are facilitators.

 They facilitate team process (e.g.: share info &


communicate with members, coach/train
members, handle disciplinary problems, review
performance, etc.)

 They also manage team’s external boundary


(i.e. know when to give up authority & when to
get involved)

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(F) Team Leadership
4 specific roles of team leaders.

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Managing Power
i. Legitimate power = The power a leader has
as a result of his position in the organization.

ii. Coercive power = The power a leader has to


punish or control. (Followers react to this power
out of fear of the negative results)

iii. Reward power = The power a leader has to


give positive rewards. (Followers react to this
power because they want get the positive
results)
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Managing Power

iv. Expert power = The power a leader has


because of his expertise, special skills, or
knowledge that is critical to his followers.

v. Referent power = The power a leader has


because of his desirable resources or personal
traits. (Followers react to this power out of
admiration & their desire to be like the leader)

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Self Reading Topics
1) Developing Trust
2) Empowering Employees
3) Leading Across Cultures
4) Becoming an Effective Leader

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Developing Trust
Credibility = The degree to which followers perceive
someone as honest, competent, & able to inspire.

Trust = The belief in the integrity, character, & ability


of a leader.
5 dimensions of trust:
 Integrity
 Competence
 Consistency
 Loyalty
 Openness
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Empowering Employees
Empowerment involves increasing the
decision-making discretion of workers.
Millions of individual employees &
employee teams are making the key
operating decisions that directly affect their
work.

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Leading Across Cultures

 Effective leaders do not use a single style.


They adjust their style to the situation.

 National culture is certainly an important


situational variable in determining which
leadership style will be most effective.

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Becoming an Effective Leader

 Leader training
 Substitutes for leadership

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