Chapter 8 Leadership

Chapter 8
Leadership
Chapter 8, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright 2007 Pearson Education Canada
8-1
Chapter Outline
Are Managers and Leaders the Same?

Leadership as Supervision
Inspirational Leadership
Dispersed Leadership: Spreading Leadership
Throughout the Organization
Leading Ones Self
Contemporary Issues in Leadership
8-2
Leadership
1. What is the difference between a manager and a
leader?
2. Are there specific traits, behaviours, and situations
that affect how one leads?
3. How does a leader lead with vision?
4. Can a person be an informal leader?
5. What is self-leadership?
6. What are some of the contemporary issues in
leadership?
8-3
Leadership
The ability to influence a group toward the
achievement of goals.
8-4
Exhibit 8-1 Distinguishing Leadership

from Management
Management
1.
2.
3.
4.
5.
6.
7.
8.
Engages in day-to-day caretaker activities:

Maintains and allocates resources
Exhibits supervisory behaviour: Acts to make
others maintain standard job behaviour
Administers subsystems within organizations
Asks how and when to engage in standard practice
Acts within established culture of the organization
Uses transactional influence: Induces compliance
in manifest behaviour using rewards, sanctions,
and formal authority
Relies on control strategies to get things done by
subordinates
Status quo supporter and stabilizer
Leadership
1. Formulates long-term objectives for reforming the
system: Plans strategy and tactics
2. Exhibits leading behaviour: Acts to bring about
change in others congruent with long-term objectives
3.
4.
5.
6.
Innovates for the entire organization

Asks what and why to change standard practice
Creates vision and meaning for the organization
Uses transformational influence: Induces change in
values, attitudes, and behaviour using personal
examples and expertise
7. Uses empowering strategies to make followers
internalize values
8. Status quo challenger and change creator
Source:R.N.Kanungo,LeadershipinOrganizations:LookingAheadtothe21 stCentury,CanadianPsychology39,no.12(1998),p.77.
8-5
Leadership as Supervision
Three general questions:
Is there a particular set of traits that all leaders
have, making them different from nonleaders?
Are there particular behaviours that make for
better leaders?
How much impact does the situation have on
leaders?
8-6
Trait Theories
Traits are characteristics of the person:
Physical characteristics
Abilities
Personality traits
Traits consistently associated with leadership:
Ambition and energy
The desire to lead
Honesty and integrity
Self-confidence
Intelligence
Job-relevant knowledge
8-7
Emotional Intelligence and Leadership

EI is the best predictor of who will emerge as a leader.
IQ and technical skills are threshold capabilities.
Theyre necessary but not sufficient requirements for
leadership.
Leaders need self-awareness, self-management, selfmotivation, empathy, and social skills to become a star
performer.
These are the components of EI.
8-8
Exhibit 8-2 What CEOs Identify as Key

Leadership Traits
Quality
CEOs Rating It Most Important (%)
Communication skills
52
Ability to motivate people
47
Honesty
34
Ability to listen
25
Team-building expertise
24
Analytical skills
19
Aggressiveness in business
10
Source:SurveyconductedbyAmericanExpressfortheNationalQualityInstitute.ReportedinR.Nutt,SurveyFindsLeadershipKey,VancouverSun,June1,2000,p.D6.
8-9
Exhibit 8-3 Leadership Attributes: A

Cross-Cultural View
Leader Attributes Universally
Liked
Leader Attributes Universally

Disliked
Leader Attributes Over Which

There Was Most Disagreement
Trustworthy
Noncooperative
Subdued
Dynamic
Irritable
Intragroup conflict avoider
Motive arouser
Egocentric
Cunning
Decisive
Ruthless
Sensitive
Intelligent
Dictatorial
Provocateur
Dependable
Loner/self-centred
Self-effacing
Plans ahead
Willful
Excellence oriented
Team builder
Encouraging
Source:D.N.DenHartog,R.J.House,P.J.Hanges,S.A.RuizQuintanilla,andP.W.Dorfman,CultureSpecificandCrossculturallyGeneralizableImplicitLeadership
Theories:AreAttributesofCharismatic/TransformationalLeadershipUniversallyEndorsed?LeadershipQuarterly10no.2(Summer1999),pp.219256.
8-10
Behavioural Theories of Leadership

Propose that specific behaviours differentiate
leaders from nonleaders
Initiating structure
E.g., task orientation, work orientation, production
orientation
Consideration
Employee needs and concerns
Examples
Ohio Studies, Michigan Studies, Managerial Grid
8-11
Exhibit 8-4 The Managerial Grid

High 9
Country club management

1,9
8
Concern for people
Thoughtful attention to
the needs of people for
satisfying relationships
leads to a comfortable,
friendly organization
atmosphere and work
tempo.
Adequate organizational
performance is possible through
balancing the necessity to get
out work with maintaining
morale of people at a
satisfactory level.
Work accomplishment is
from committed people
who have a common
stake in the
organizations purpose.
This leads to relationships
of trust and respect.
Middle-of-the-road management
5,5
Team management
9,9
Impoverished management
1,1
Authority-obedience
9,1
Exertion of minimum effort

to get required work done is
appropriate to sustain
organization membership.
Efficiency in operations
results from arranging
conditions of work in such a
way that human elements
interfere to a minimum
degree.
Low 1
Low
Concern for production
Source:Reprintedbypermissionof
HarvardBusinessReview.Basedon
anexhibitfromBreakthroughin
OrganizationDevelopment,byR.
R.Blake,J.S.Mouton,L.B.
Barnes,andL.E.Greiner
(NovemberDecember1964).
Copyright1964bythePresident
andFellowsofHarvardCollege;all
rightsreserved.
High
8-12
Research Findings for Behavioural

Theories
When subordinates experience a lot of pressure because of
deadlines or unclear tasks, leaders who are people oriented will
increase employee satisfaction and performance.
When the task is interesting or satisfying, there is less need for
leaders to be people oriented.
When its clear how to perform the task and what the goals are,
leaders who are people oriented will increase employee
satisfaction, while those who are task oriented will increase
dissatisfaction.
When people dont know what to do, or individuals dont have the
knowledge or skills to do the job, its more important for leaders to
be production oriented than people oriented.
8-13
Contingency or Situational
Leadership Theories
Stress the importance of considering the
context when examining leadership.
Fiedler Contingency Model

Hersey and Blanchards Situational Theory
Path-Goal Theory
Substitutes for Leadership
8-14

Effective group performance depends upon the proper
match between the leaders style and the degree to
which the situation gives control to the leader.
Least preferred co-worker (LPC) questionnaire
determined whether individuals were primarily
interested in:
good personal relations with co-workers, and thus
relationship oriented, or
productivity, and thus task oriented.
8-15

Fiedlers contingency situations:
Leader-member relations
Degree of confidence, trust, and respect members have for
leader.
Task structure
Degree to which jobs are structured.
Position power
Degree to which leader has control over power: hiring,
firing, discipline, promotions, salary.
Fiedler assumed that an individuals leadership style is

fixed.
8-16
Hersey and Blanchards Situational

Theory
Follower: unable and unwilling
Leader: needs to give clear and specific
directions.
Follower: unable but willing

Leader: needs to display high task orientation
and high relationship orientation.
8-17
Hersey and Blanchards Situational

Theory
Follower: able but unwilling
Leader: needs to use a supportive and
participative style.
Follower: both able and willing

Leader: a laissez-faire approach will work.
8-18
Exhibit 8-5 Hersey and Blanchards

Situational Leadership Theory
Leader Behaviours
Relationship Behaviour
(High)
g
tin
pa
i
c
rti
Pa
Se
llin
g
S3
S2
ng
ati
g
le
De
S4
Te
llin
g
S1
(Low)
Task behaviour
(High)
Follower Readiness
R4
R3
Able and
willing
High
R2
Able and
unwilling/
apprehensive
Unable and
willing
R1
Unable and
unwilling/
insecure
Moderate
Low
8-19
Path-Goal Theory of Leadership

A theory that says its the leaders job to assist
followers in reaching their goals and to provide
the necessary direction and/or support to
ensure that their individual goals are
compatible with the overall goals.
8-20
Path-Goal Guidelines to Be An
Effective Leader
Determine the outcomes subordinates want.
e.g., good pay, job security, interesting work, and autonomy to
do ones job, etc.
Reward individuals with their desired outcomes when they
perform well.
Be clear with expectations.
Let individuals know what they need to do to receive rewards
(the path to the goal).
Remove barriers that prevent high performance.
Express confidence that individuals have the ability to perform
well.
8-21
Path-Goal Leadership Styles

Directive
Informs subordinates of expectations, gives
guidance, shows how to do tasks.
Supportive
Friendly and approachable, shows concern for
status, well-being, and needs of subordinates.
8-22
Path-Goal Leadership Styles

Participative
Consults with subordinates, solicits suggestions, takes
suggestions into consideration.
Achievement-oriented
Sets challenging goals, expects subordinates to perform at
highest level, continuously seeks improvement in
performance, has confidence in highest motivations of
employees.
8-23
Exhibit 8-6 Path-Goal Theory

CONTINGENCY FACTORS
Environmental
Task Structure
Formal Authority System
Work Group
Outcomes
Leader Behaviour
Directive
Achievement-oriented
Participative
Supportive
Performance
Satisfaction
Subordinate
Locus of control
Experience
Perceived ability
8-24
Exhibit 8-7 Substitutes and

Neutralizers for Leadership
Characteristics of Individual
Effect on Leadership
Experience/training
Substitutes for task-oriented leadership
Professionalism
Substitutes for relationship-oriented and task-oriented leadership
Indifference to rewards
Neutralizes relationship-oriented and task-oriented leadership
Characteristics of Job
Highly structured task
Provides its own feedback
Intrinsically satisfying
Substitutes for relationship-oriented leadership
Characteristics of organization
Explicit formalized goals
Rigid rules and procedures
Cohesive work groups
Substitutes for relationship-oriented and task-oriented leadership
Source:BasedonS.KerrandJ.M.Jermier,SubstitutesforLeadership:TheirMeaningandMeasurement,OrganizationalBehaviorand
HumanPerformance,December1978,p.378.
8-25
Can You Be a Better Follower?

Ineffective followers may be more of a handicap to an
organization than ineffective leaders.
What qualities do effective followers have?
They manage themselves well.
They are committed to a purpose outside themselves.
They build their competence and focus their efforts for
maximum impact.
They are courageous, honest, and credible.
8-26
Transactional vs. Transformational

Leadership
Transactional leaders
Leaders who guide or motivate their followers in
the direction of established goals by clarifying
role and task requirements.
Transformational leaders
Leaders who inspire followers to go beyond their
own self-interests for the good of the
organization, and have a profound and
extraordinary effect on their followers.
8-27
Exhibit 8-9 Characteristics of

Transactional Leaders
Contingent reward
Contracts exchange of rewards for effort, promises rewards for
good performance, recognizes accomplishments.
Management by exception (active)
Watches and searches for deviations from rules and standards,
takes corrective action.
Management by exception (passive)
Intervenes only if standards are not met.
Laissez-Faire leader
Abdicates responsibilities, avoids making decisions.
Source:B.M.Bass,FromTransactionaltoTransformationalLeadership:LearningtoSharetheVision,OrganizationalDynamics,Winter1990,p.22.Reprintedwith
permissionofthepublisher.AmericanManagementAssociation,NewYork.Allrightsreserved.
8-28
Exhibit 8-9 Characteristics of

Transformational
Leaders
Charisma
Provides vision and sense of mission, instills pride, gains respect
and trust.
Inspiration
Communicates high expectations, uses symbols to focus efforts,
expresses important purposes in simple ways.
Intellectual stimulation
Promotes intelligence, rationality, and careful problem-solving.
Individualized consideration
Gives personal attention, treats each employee individually,
coaches, advises.
Source:B.M.Bass,FromTransactionaltoTransformationalLeadership:LearningtoSharetheVision,OrganizationalDynamics,Winter1990,p.22.Reprintedwith
permissionofthepublisher.AmericanManagementAssociation,NewYork.Allrightsreserved.
8-29
Charismatic Leadership
Leadership that critically examines the status
quo with a view to developing and articulating
future strategic goals or vision for the
organization, and then leading organizational
members to achieve these goals through
empowerment strategies.
8-30
Dispersed Leadership
Mentoring
Providing Team Leadership
8-31
Mentoring
Many leaders create mentoring relationships.
A mentor is often a senior employee who sponsors and
supports a less-experienced employee (a protg).
The mentoring role includes:
Coaching
Counselling
Sponsorship
8-32
Providing Team Leadership

Leading teams requires new skills.
e.g., patience to share information, trust others, give up
authority, and knowing when to intervene.
Leading teams requires new roles.

Liaisons with external constituencies
Troubleshooters
Conflict managers
Coaches
8-33
Team Leaders
Team leaders need to focus on two priorities:
Managing the teams external boundary
Facilitating the team process
Four specific roles:
Liaisons with external constituencies.
Troubleshooters
Conflict managers
Coaches
8-34
Factors Calling for Self-Leadership
Reduced levels of supervision

Offices in the home
Teamwork
Growth in service and professional
employment where individuals are often
required to make decisions on the spot
8-35
How Do Leaders Create

Self-Leaders?
Model self-leadership.
Encourage employees to create self-set goals.
Encourage the use of self-rewards to strengthen and
increase desirable behaviours.
Create positive thought patterns.
Create a climate of self-leadership.
Encourage self-criticism.
8-36
Benefits of Leading Without Authority

Latitude for creative deviance
Easier to raise questions.
Issue focus
Freedom to focus on single issue, rather than
many issues.
Frontline information
Often closer to the people who have the
information.
8-37
Contemporary Issues in Leadership

Moral Leadership
Gender and Leadership
Online Leadership
8-38
The Moral Foundation of Leadership

Truth telling
Telling the truth as you see it, because it allows for a mutual, fair
exchange to occur.
Promise keeping
Leaders need to be careful of the commitments they make, and
then careful of keeping those promises.
Fairness
This ensures that followers get their fair share for their
contributions to the organization.
Respect for the individual
Telling the truth, keeping promises, and being fair all show respect
for the individual. Respect means treating people with dignity.
8-39
How Many Women

Make It to the Top?
Women in general comprise:
46.2 percent of the labour force

32 percent of managers and administrators
14 percent of senior managers
57 percent of graduate degree holders
51 percent of Canadian population
Half of Canadas companies have no women in top ranks.
8-40
Mens and Womens Leadership

Styles
In general, women fall back on a democratic
leadership style:
Encourage participation
Share power and information
Attempt to enhance followers self-worth
Prefer to lead through inclusion
Men feel more comfortable with a directive commandand-control style:

Rely on formal authority
8-41
Exhibit 8-11 Where Female Managers Do

Better: A Scorecard
Noneof the five studies set out to find gender differences. They stumbled on them
compiling and analyzing performance evaluations.
Skill (Each check mark denotes which group
MEN
scored higher on the respective studies)
Motivating Others
Fostering Communication
Producing High-Quality Work
Strategic Planning
Listening to Others
Analyzing Issues
WOMEN
*
*
*
* In one study, womens and mens scores in these categories were

statistically even.
Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, Personnel
Decisions International Inc., Advanced Teamware Inc.
Source:R.Sharpe,AsLeaders,WomenRule,BusinessWeek,November20,2000,p.75.ReprintedbypermissionofBusinessWeek.
8-42
Summary and Implications

1. What is the difference between a manager and a
leader?
One theorist suggests that managers promote stability

while leaders press for change.
2. Are there specific traits, behaviours, and situations

that affect how one leads?
The research on this topic has been mixed. Contingency

theories suggest that leaders need to adjust their
behaviours, depending on the situation and employee
needs.
8-43

3. How does a leader lead with vision?
Leaders that lead with vision are known as

transformational or charismatic leaders. They inspire
followers to go beyond their own self-interests for the
good of the organization.
4. Can a person be an informal leader?
A person can be an informal leader. Such leadership can

take the form of mentoring. People can also be informal
leaders of teams.
8-44

5. What is self-leadership?
With self-leadership, individuals and teams set goals,

plan and implement tasks, evaluate performance, solve
their own problems, and motivate themselves.
6. What are some of the contemporary issues in

leadership?
Three major issues of leadership today are moral

leadership, gender differences, and online leadership.
8-45
OB at Work
8-46
For Review
1. Trace the development of leadership research.
2. Describe the strengths and weaknesses of trait
theories of leadership.
3. What is the Managerial Grid? Contrast its approach
to leadership with the approaches of the Ohio State
and Michigan studies.
4. What are the contingency variables in the path-goal
theory?
5. When might leaders be irrelevant?
8-47
For Review
6. What characteristics define an effective follower?
7. What are the differences among transactional and
transformational leadership?
8. Describe the strengths and weaknesses of a
charismatic leader.
9. What is moral leadership?
10. Why do you think effective female and male
managers often exhibit similar traits and behaviours?
8-48
For Critical Thinking

1. Reconcile path-goal theory and substitutes for leadership.
2. What kind of activities could a full-time college or university
student pursue that might lead to the perception that he or she is
a charismatic leader? In pursuing those activities, what might
the student do to enhance this perception of being charismatic?
3. Based on the low representation of women in upper
management, to what extent do you think that organizations
should actively promote women into the senior ranks of
management?
8-49
For Critical Thinking

4. Is there an ethical problem if leaders focus
more on looking like a leader than actually
being one? Discuss.
5. Leaders make a real difference in an
organizations performance. Build an
argument in support of this statement. Then
build an argument against this statement.
8-50
Breakout Group Exercises

Form small groups to discuss the following:
1. Identify an example of someone you think of as a good leader.
What traits did they have? How did these traits differ from
someone you identify as a bad leader?
2. Identify a situation when you were in a leadership position (in a
group, in the workplace, within your family, etc.). To what
extent were you able to use a contingency approach to
leadership? What made that easier or more difficult for you?
3. When you have worked in student groups, how frequently have
leaders emerged in the groups? What difficulties occur when
leaders are leading peers? Are there ways to overcome these
difficulties?
8-51
Concepts to Skills: Practising to Be

Charismatic
Project a powerful, confident, and dynamic
presence.
Articulate an overarching goal.
Communicate high-performance expectations
and confidence in others ability to meet these
expectations.
Be sensitive to the needs of followers.
8-52

Chapter 8 Leadership

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Chapter 8

Are Managers and Leaders the Same?

Exhibit 8-1 Distinguishing Leadership

Engages in day-to-day caretaker activities:

Innovates for the entire organization

Emotional Intelligence and Leadership

Exhibit 8-2 What CEOs Identify as Key

CEOs Rating It Most Important (%)

Ability to motivate people

Exhibit 8-3 Leadership Attributes: A

Leader Attributes Universally

Leader Attributes Over Which

Intragroup conflict avoider

Behavioural Theories of Leadership

Exhibit 8-4 The Managerial Grid

Country club management

Concern for people

Exertion of minimum effort

Concern for production

Research Findings for Behavioural

Fiedler Contingency Model

Fiedler Contingency Model

Fiedler Contingency Model

Fiedler assumed that an individuals leadership style is

Hersey and Blanchards Situational

Follower: unable but willing

Hersey and Blanchards Situational

Follower: both able and willing

Exhibit 8-5 Hersey and Blanchards

Path-Goal Theory of Leadership

Path-Goal Leadership Styles

Path-Goal Leadership Styles

Exhibit 8-6 Path-Goal Theory

Exhibit 8-7 Substitutes and

Substitutes for task-oriented leadership

Substitutes for relationship-oriented and task-oriented leadership

Neutralizes relationship-oriented and task-oriented leadership

Substitutes for task-oriented leadership

Provides its own feedback

Substitutes for task-oriented leadership

Substitutes for relationship-oriented leadership

Substitutes for task-oriented leadership

Rigid rules and procedures

Substitutes for task-oriented leadership

Cohesive work groups

Substitutes for relationship-oriented and task-oriented leadership

Can You Be a Better Follower?

Transactional vs. Transformational

Exhibit 8-9 Characteristics of

Exhibit 8-9 Characteristics of

Providing Team Leadership

Leading teams requires new roles.

Factors Calling for Self-Leadership

Reduced levels of supervision

How Do Leaders Create

Benefits of Leading Without Authority

Contemporary Issues in Leadership

The Moral Foundation of Leadership

How Many Women

46.2 percent of the labour force

Half of Canadas companies have no women in top ranks.

Mens and Womens Leadership

Men feel more comfortable with a directive commandand-control style:

Exhibit 8-11 Where Female Managers Do