Griffin Mgmt12e IM Ch13

CHAPTER 16
Managing Leadership and Influence Processes

CHAPTER SUMMARY
This chapter examines leadership in organizations and looks at both effective leaders and less effective
ones. The chapter starts by characterizing the nature of leadership and discusses the three major
approaches to studying leadership – traits, behaviors, and situations. After examining other perspectives
on leadership, the chapter concludes by describing another approach to influencing others – political
behavior in organizations.
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Describe the nature of leadership and relate leadership to management.
2. Discuss and evaluate the two generic approaches to leadership.
3. Identify and describe the major situational approaches to leadership.
4. Identify and describe three related approaches to leadership.
5. Describe three emerging approaches to leadership.
6. Discuss political behavior in organizations and how it can be managed.
MANAGEMENT IN ACTION
Leaders of Oil Repute
The opening case focuses on leadership in the oil industry, highlighting BP Oil in particular. The oil
industry has a high ratio of making sustainability a strategic priority. The question is raised as to whether
the companies are pushing sustainability for the right reasons. Is the oil industry concerned for their
future, thus their interest in sustainability? Or are they just greenwashing themselves as a sustainable
corporation to prop up their reputations?
Discussion Starter: Ask students their opinion on BP Oil. Do they feel this is a
company interested in sustainability because it is the right thing to do, or because BP
wants to protect their reputation? Can students come up with other companies who
appear to be greenwashing? Dow and Monsanto may come up in this discussion.
LECTURE OUTLINE
I. THE NATURE OF LEADERSHIP
A. The Meaning of Leadership

Leadership is both a process and a property.
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Management 12e by Ricky W. Griffin
1. Leadership as a process is the use of noncoercive influence to shape the group’s or

organization’s goals, motivate behavior toward the achievement of those goals, and help
define group and organization culture.
2. Leadership as a property is the set of characteristics attributed to individuals who are
perceived to be leaders.
Thus, leaders are people who can influence the behaviors of others without having to rely on
force; those accepted by others as leaders.
Group Exercise: Have small groups of students brainstorm a list of names that they
think of when they hear the word “leadership.” Have a representative from each group
write its list on the board. Note similarities and differences among the different lists.
B. Leadership and Management
Leadership and management are related but not the same. A person can be a manager, a
leader, both, or neither.
For example, when executing plans managers focuses on monitoring results, comparing them
with goals, and correcting deviations. In contrast, the leadership side of the same activity
focuses on energizing people to overcome bureaucratic hurdles to help reach goals.
Teaching Tip: Walk through Table 16.1 with your students to highlight for them the
various distinctions that can be drawn between management and leadership.
Organizations need both good managers and good leaders if they are to be effective.
Leadership is necessary to create change, and management is necessary to achieve orderly
results.
C. Leadership and Power
Power is the ability to affect the behavior of others. One can have power without using it. In
organizational settings, there are usually five kinds of power: legitimate, reward, coercive,
referent, and expert power.
Teaching Tip: Some instructors use their role vis-à-vis their students to illustrate power.
For example, instructors hold legitimate, reward, and expert power over students, but
they may or may not hold coercive and/or referent power.
1. Legitimate power is power granted through the organizational hierarchy; the power
defined by the organization to be accorded to people occupying particular positions.
Legitimate power is authority, but does not make someone a leader.
2. Reward power is the power to give or withhold rewards, such as salary increases,
bonuses, promotions, praise, recognition, and interesting job assignments. The manager
is a leader if subordinates seek the informal rewards such as praise and recognition.
3. Coercive power is the power to force compliance by means of psychological, emotional,
or physical threat. Managers who rely too much on coercive power are resented and seen
as poor leaders.
Interesting Quote: “I’ve yelled at people and I’m not ashamed of it. We have to run this
company efficiently and without a bunch of babies who say ‘Mommy yelled at me
today.’ It’s impossible to run a leveraged operation like camp. If you don’t like it, leave.
It’s not a prison.” (Linda Wachner, CEO of Warnaco, Fortune, October 18, 1993, 41.)
4. Referent power is the personal power that accrues to someone based on identification,
imitation, loyalty, or charisma. Referent power is abstract but more likely to be
associated with leadership.
Chapter 16: Managing Leadership and Influence Processes
5. Expert power is the personal power that accrues to someone based on information or
expertise they possess. People who are both leaders and managers tend to have a lot of
expert power.
Discussion Starter: Have students recall examples of when they have used or have
witnessed these various bases of power.
6. Several methods of using power have been identified.
a) A legitimate request based on legitimate power.
b) Instrumental compliance, whereby a subordinate performs a duty requested and
receives a reward for doing so. Based on reinforcement theory.
c) A manager uses coercion when they imply punishment for not doing something.
d) Rational persuasion occurs when the manager can convince the subordinate that
compliance is in their best interests.
e) Personal identification is used when a manager realizes, and then exploits, their
referent power.
f) A manager who induces a subordinate to do something consistent with a set of
higher ideals or values is using inspirational appeal.
g) Information distortion, an unethical method of using power, is withholding or
distorting information to influence subordinates’ behavior. If subordinates discover
they were misled, they will lose confidence and trust in their manager’s leadership.
Group Exercise: Have small groups of students connect specific kinds of power with
each of the potential uses of power. That is, each potential use of power relies on or
assumes that the manager has one or more kinds of power.
Discussion Starter: Ask students to critique each use of power in terms of its likely
effectiveness and acceptability.
II. GENERIC APPROACHES TO LEADERSHIP
Early approaches to the study of leadership assumed there was one set of answers to the leadership
puzzle. They adopted a “universal” or “generic” perspective. One generic approach focused on
leadership traits, the other looked at leadership behavior.
A. Leadership Traits
Research in leadership began by trying to generate “the profile" of a leader, including traits
such as intelligence and self-confidence. This approach assumed that some basic set of traits
differentiated leaders from nonleaders, making them ‘identifiable’.
The results were disappointing. For every common trait identified, a long list of exceptions
were also found. The list soon became too long to be of any useful value.
Extra Example: Other traits that have been suggested as determinants of leader
effectiveness include astrological sign, birth order, body shape, and handwriting style.
Teaching Tip: Point out to students the assumptions about leadership traits sometimes
play a role in political races. For example, some people questioned H. Ross Perot’s
political skills because of his height, and others criticized Bill Clinton because he has
tended to have a weight problem. Still, Clinton defeated George Bush, in part due to what
some people called Bush’s “wimp factor.” Perhaps “wimpiness,” then, is also a trait!
B. Leadership Behaviors
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Researchers soon began to investigate other variables, especially the behaviors or actions of
leaders. The new hypothesis was that effective leaders somehow behaved differently than less
effective leaders.
1. The Michigan studies (conducted by Likert at the University of Michigan, 1940’s)

Based on extensive interviews, this research identified two basic forms of leader
behavior: job-centered and employee-centered.
Managers using job-centered leader behavior pay close attention to subordinates’ work,
explain work procedures, and are keenly interested in performance.
Managers using employee-centered leader behavior are interested in developing a

cohesive work group and ensuring that employees are satisfied with their jobs.
These behaviors were thought to be at opposite ends of one continuum with employee-
centered leaders being the more effective.
Cross-Reference: Note that the Michigan studies were part of the same research
programs that led to the identification of Systems 1 (bureaucratic and rigid) through 4
(organic and flexible) forms of organization design, as discussed in Chapter 11. So
moving from a System 1 to a System 4 also involved moving from a job-centered to an
employee-centered leader behavior.
2. The Ohio State University studies also found two basic leader behaviors or styles:
initiating-structure behavior and consideration behavior.
When using initiating-structure behavior, the leader clearly defines the leader-
subordinate role so that everyone knows what is expected, establishes formal lines of
communication, and determines how tasks will be performed.
Leaders using consideration behavior show concern for subordinates and attempt to
establish a warm, friendly and supportive climate.
Unlike the Michigan studies, each behavior was assumed independent of the other. The
Ohio State researchers expected to find leaders who exhibited high levels of both
behaviors but ultimately had to conclude that situational influences occur making
consistent prediction difficult.
Teaching Tip: It may help to sketch the distinction between the one-dimensional
Michigan view and the two-dimensional Ohio State approach.
Extra Example: The Ohio State studies involved one of the earliest known attempts to
train managers to be more effective leaders.
3. The Managerial Grid is another behavioral approach to leadership providing a means for
evaluating leadership styles and then training managers to move toward an ideal style of
behavior.
The horizontal axis represents concern for production (similar to job-centered and
initiating-structure behaviors) and deals with the job and task aspects of leader behavior.
The vertical axis represents concern for people (similar to employee-centered and
consideration behaviors) and deals with the human aspects of leader behavior.
Note the five extremes of managerial behavior:
The 1,1 manager (impoverished management) exhibits minimal concern for both
production and people.
The 9,1 manager (authority-compliance) who is highly concerned about production but
exhibits little concern for people.
The 1,9 manager (country club management), who has exactly opposite concerns from
the 9,1 manager. The 5,5 manager (middle-of-the-road management), who maintains
adequate concern for both people and production.
The 9,9 manager(team management), who exhibits maximum concern for both people
and production. This is the ‘ideal’ style of managerial behavior.
Extra Example: The Managerial Grid is used as an organization development technique.

Organizations buy the program and use it to enhance behavioral processes and dynamics.
Extra Example: The reason that little scientific evidence exists regarding the grid is that
users must sign a contract specifying that they will not allow outsiders to evaluate it.
The leader-behavior theories played an important role in the development of contemporary
thinking about leadership. They urge us not to focus on a leaders traits but to concentrate on what
leaders do, their behaviors.
New approaches were needed and the catalyst was the realization that although interpersonal and
task-oriented dimensions might be useful for describing the behavior of leaders, they were not
useful for predicting or prescribing it. The next step in the evolution of leadership theory was the
creation of situational models.
III. SITUATIONAL APPROACHES TO LEADERSHIP
Situational models assume that appropriate leader behavior varies from one situation to another.
The goal of situational theory is to identify key situational factors and to specify how they interact to
determine appropriate leader behavior.
An important early model laid the foundation for subsequent developments. In 1958, Robert
Tannenbaum and Warren H. Schmidt proposed a continuum of leadership behavior.
Their model is much like the original Michigan framework. Besides job-centered behavior (or
“boss-centered” behavior, as they termed it) and employee-centered (“subordinate-centered”)
behavior, they identified several intermediate behaviors.
This continuum of behavior moves from one extreme, of having the manager make the decisions
alone, to the other extreme, of having the employees make the decision with minimal guidance.
Each point on the continuum is influenced by characteristics of the manager, the subordinates, and
the situation. Though helpful, it was only speculative.
In the following sections, the text describes four of the most important and widely accepted
situational theories of leadership: the LPC theory, the path-goal theory, Vroom’s decision tree
approach, and the leader-member exchange approach.
Cross-Reference: Note that situational approaches to leadership are consistent with the
contingency perspective on management introduced and discussed in Chapter 2.
Teaching Tip: Even though it is many years old, Tannenbaum and Schmidt’s leadership
continuum, presented in Figure 16.2 is still is an effective way to introduce the idea of
situational approaches to leadership.
Interesting Quote: One early practitioner of situational leadership was President Lyndon
Johnson. This quote is from his description of how he handled different reporters during
an interview published in The Atlantic Monthly, January 1976, p. 78: “You learn that
Mary McGrory likes dominant personalities and Doris Fleeson cares only about issues, so
that when you’re with McGrory you come on strong and with Fleeson you make yourself
sound like some impractical red-hot liberal.”
Teaching Tip: The three scales presented here in the text are, of course, only part of the
LPC questionnaire. Obtain a copy of the complete instrument and have your students
complete it. Use their results as part of the discussion of the LPC theory.
A. Least-Preferred Coworker (LPC) Theory
The LPC theory is a theory of leadership that suggests that the appropriate style of leadership
varies with situational favorableness. Developed by Fred Fiedler, this was the first true
situational leadership theory. Beginning with a combined trait and behavior approach, Fiedler
identified two styles of leadership: task oriented and relationship oriented.
1. First, Fiedler measures leadership style by means of a controversial questionnaire called
the least preferred coworker (LPC) measure. The leader thinks of the worker he or she
is least able to work with while filling in a set of 16 scales anchored at each end by a
positive or negative adjective. The total score for the scale presumably reflects the
leader’s personality type as either task-oriented or relationship-oriented.
2. Next, the situation is assessed. Fiedler believed that the favorableness of the situation is
the most important situational factor. Favorableness is determined by three things.
a) Leader-member relations refers to the trust and respect that exist between the
leader and the work group. Good relations are more favorable.
Discussion Starter: The LPC theory suggests that leader-member relations is the most
important of the three determinants of situational favorableness, while position power is
the least important of the three. Solicit student opinions on this importance ranking.
b) Task structure measures the degree to which the group’s task is well defined. High
structure is more favorable.
c) Position power, which assesses the power vested in the leader’s position, is
favorable when the leader has authority and controls rewards.
Teaching Tip: Have students write hypothetical scenarios representing various levels of
each aspect of favorableness.
3. When the situation is the highly favorable or highly unfavorable, the best leadership style
is task-oriented. Relationship-oriented leaders are best in situations that are neither
highly favorable nor highly unfavorable.
4. Fielder argues that since the leader’s style is fixed, the situation should be changed to
match the leader in order to make him or her most effective.
5. While Fiedler’s theory is often criticized, it was the first to adopt a situational perspective
on leadership.
Discussion Starter: Fielder asserts that leader behavior is inflexible and cannot be readily
changed. Ask students if they agree or disagree with this assertion. If Fiedler’s theory is
valid, what implications might be drawn regarding leadership training programs?
B. Path-Goal Theory
The path-goal theory of leadership suggests that the primary functions of a leader are to make
valued or desired rewards available in the workplace and to clarify for the subordinate the
kinds of behavior that will lead to those rewards.
1. The most fully developed version of path-goal theory identifies four kinds of leader
behavior.
a) Directive leader behavior lets subordinates know what is expected of them, gives
guidance and direction, and schedules work.
b) Supportive leader behavior is being friendly and approachable, showing concern
for subordinates’ welfare, and treating members as equals.
c) Participative leader behavior includes consulting with subordinates, soliciting
suggestions, and allowing participation in decision making.
d) Achievement-oriented leader behavior means setting challenging goals, expecting
subordinates to perform at high levels, encouraging subordinates, and showing
confidence in subordinates’ abilities.
In contrast to Fiedler’s theory, path-goal theory assumes leaders can change their style or
behavior to meet the demands of a particular situation.
2. Path-goal theory suggests that the appropriate leadership style depends on two situational
factors: the personal characteristics of subordinates and environmental characteristics of
the workplace.
Personal characteristics includes a person’s perception of their own abilities and their
locus on control. Environmental characteristics include factors outside the subordinates’
control, such as task structure, the formal authority system or the nature of the work
group.
Teaching Tip: Point out for students the logic underlying this theory’s somewhat
awkward name: the theory asserts that the leader’s primary function is to clarify for
subordinates the path to their goals. That is, the leader can enhance subordinate
performance by determining what subordinates want (their goals) and then making those
goals clearly linked to performance (i.e., the path).
Cross-Reference: The path-goal theory of leadership is a direct extension of the

expectancy theory of motivation discussed in Chapter 15. Recall that expectancy theory
suggests that motivation is a function of how much we want something and how likely
we think we are to get it. The path-goal theory says that a leader should clarify the
likelihood of getting desired outcomes or goals.
Discussion Starter: Note that in contrast to the LPC theory, path-goal theory suggests
that leaders can alter their behavior. Poll your students to determine whether they agree.
C. Vroom’s Decision Tree Approach
Cross-Reference: Note that Vroom was also one of the primary expectancy theorists, as
discussed in Chapter 15.
Vroom’s decision tree approach uses a situational model of leader behavior to predict what
kinds of situations call for what degrees of group participation.
1. Vroom’s formulation suggests managers use one of two different decision trees, a time-
driven decision tree and a development-driven decision tree. The problem attributes
(situational factors) are arranged along the top of the decision tree.
To use the model, the decision maker starts at the left side of the diagram and assesses
the first problem attribute (decision significance). The answer determines the path to the
second node on the decision tree, and so on until the manager reaches a terminal node
identifying an effective decision-making style for the situation.
2. The various decision styles at the ends of the tree branches represent different levels of
subordinate participation. The five styles are defined as follows:
Decide. The manager makes the decision alone then announces it to the group.
Consult (individually). The manager presents the program to group members
individually, obtains their suggestions, and then makes the decision.
Consult (group). The manager presents the problem to group members at a meeting, gets
their suggestions, and then makes the decision.
Facilitate. The manager presents the problem to the group at a meeting, defines the
problem and its boundaries, and then facilitates group member discussion as they make
the decision.
Delegate. The manager allows the group to define for itself the exact nature and
parameters of the problem and then to develop a solution.
3. The original model has been supported by research, while the newer model has not yet
been fully tested. However, the model is also very complex, which makes it difficult to
use. Automated methods make the model easier.
Teaching Tip: When the Vroom model was introduced, a consulting firm marketed a
device similar to a calculator for using the model. The user pressed yes/no buttons to
answer the questions, and the display indicated the appropriate style of decision making.
Teaching Tip: The Vroom model is very complex and may be difficult for students to
grasp. Walk through several examples based on different scenarios, using the trees in
Figure 16.5 and Figure 16.6 references. Ask students to notice especially the differences
in the decision trees for use in situations that are or are not time-driven.
Global Connection: Japanese managers have become very interested in learning how to
use the Vroom model.
D. The Leader-Member Exchange Approach
The leader-member exchange (LMX) model of leadership stresses the fact that leaders have
different kinds of relationships with different subordinates. Each superior-subordinate pair is
referred to as a “vertical dyad.”
Those close to the manager are “the in-group” members who receive better treatment than “the
out-group” members.
Discussion Starter: Ask students if they have ever experienced in-group/out-group
treatment. Ask if they have ever observed a leader treating subordinates in different ways.
IV. RELATED APPROACHES TO LEADERSHIP
A. Substitutes for Leadership

Substitutes for leadership identifies situations in which leader behaviors are neutralized or
replaced by characteristics of subordinates, the task, and the organization.
For example, highly experienced employees do not need to be told what to do.
Task characteristics, such as simplicity in routine tasks, does not require leadership.
Organizational characteristics such as formal and inflexible policies substitute for leadership.
Discussion Starter: Ask students to identify leadership substitutes that might work in a
classroom setting (e.g., structured assignments, group projects, etc.).
B. Charismatic Leadership
Charismatic leadership assumes that charisma is an individual characteristic of the leader.
Charisma is a form of interpersonal attraction that inspires support and acceptance.
Someone with charisma is more likely to influence others than someone without charisma.
Experts acknowledge three elements of charismatic leadership in organizations.
1. Charismatic leaders envision the future and have high expectations.
2. Charismatic leaders use enthusiasm and prior success to energize others.
3. Charismatic leaders support other and express confidence.
Discussion Starter: Ask students to identify popular charismatic leaders today and/or
ask students to debate the ethics of charismatic leadership.
C. Transformational Leadership
Transformational leadership is leadership that goes beyond ordinary expectations by
transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of
thinking.
Because of rapid change and turbulent environments, transformational leaders are seen as vital to
the success of business.
Teaching Tip: Some experts have noted that while transformational leaders may be
perceived as highly effective during organizational transformation, they are often
perceived as less effective when leading after transformation is completed.
V. EMERGING APPROACHES TO LEADERSHIP
A. Strategic Leadership
Strategic leadership is a new concept the explicitly relates leadership to the role of top
management.
Strategic leadership is the capability to understand the complexities of both the organization
and its environment and to lead change in the organization in order to achieve and maintain a
superior alignment between the organization and its environment.
Strategic leadership is effective when leaders understand the capabilities of their firm, the
firm’s environment, how the firm is currently aligned with its environment, and the direction
of important trends.
Cross-Reference: Note that strategic leadership is closely related to the discussion of
strategy and strategic management that is found in Chapter 7.
B. Cross-Cultural Leadership
Effective cross-cultural leaders understand cultural and national differences and also the
diversity that exists within a national culture.
As organizations become more global and more diverse, cross-cultural leadership will become
more important.
C. Ethical Leadership
In the wake of recent corporate scandals, managers are being called upon to demonstrate sound
ethical principles and serve as ethical role models.
When hiring new leaders, businesses are looking closely at the background of those
considered. Emerging pressure for stronger corporate governance will further increase
commitment to hiring only those with high ethical standards and to hold them accountable for
both their actions the consequences of those actions.
VI. POLITICAL BEHAVIOR IN ORGANIZATIONS
Political behavior consists of activities carried out for the specific purpose of acquiring,
developing, and using power and other resources to obtain one’s preferred outcomes.
Political behavior may be directed upward, downward, or laterally.
In most organizations, political behavior is perceived to be widespread, and top levels are thought to
be more political than are lower levels.
Discussion Starter: Ask students if they think an organization can function without
some form of political behavior. Ask if they think political behavior is more likely to
have positive or negative effects on an organization.
A. Common Political Behaviors
1. Inducement occurs when something is given in return for support.
2. Persuasion relies on manipulation of logic and emotions.
3. When a manager does a favor in hopes of receiving one in return, that is called creating
an obligation.
4. Coercion, or the use of force, may be effective in the short-term, but it is often
ineffective in the long-term.
B. Impression Management
Impression management a direct and intentional effort by someone to enhance his or her
image in the eyes of others.
People engage in impression management to further their careers, receive rewards, garner
attractive job assignments, receive promotions, boost their self-esteem or gain power and
control.
People use several mechanisms to manage how others perceive them, such as appearance and
association. If too strongly motivated by impression management, it could lead to dishonest or
unethical means, such as taking credit for the work of others, or exaggerating their
accomplishments.
C. Managing Political Behavior

There are some guidelines for effective management of political behavior.
1. Be aware that others may assume your motives are political even if they are not.
2. Give subordinates autonomy, responsibility, challenges, and feedback to reduce political
behavior.
3. Avoid using power if possible.
4. Get disagreements out in the open, reducing the effectiveness of politics.
5. Avoid covert activities to avoid even the perception of political behavior.
6. Keep performance evaluations transparent, tie rewards directly to performance, and

minimize competition among mangers for resources.
These guidelines are much easier to list than they are to implement. Managers must recognize
that political behavior exists and they must manage it in such as way that it will seldom inflict
serious damage on the organization.
Discussion Starter: Ask students to recall instances of positive and negative political
behavior they may have observed.
END OF CHAPTER QUESTIONS
Questions for Review

1. What activities do managers perform? What activities do leaders perform? Do organizations
need both managers and leaders? Why or why not?
Managers are responsible for planning, budgeting, organizing, staffing, controlling, and problem
solving. Leaders establish direction, align people, motivate, and inspire. A firm needs to achieve
results in an orderly fashion, which falls in the domain of management, and it also needs to energize
and inspire its workers, which is the role of leadership.
2. What are the situational approaches to leadership? Briefly describe each and compare and
contrast their findings.
Situational approaches assume that appropriate leadership style varies from situation to situation.
LPC theory outlines two leadership styles: task-oriented and relationship-centered. Leadership style
is assessed by the LPC measure. The LPC model suggests that leader behavior is a function of
situational favorableness. The path-goal theory of leadership suggests that leadership can be
enhanced by helping subordinates clarify paths to goal attainment and by rewarding behavior to
ensure that good performance is a direct path to positive outcomes. Four styles of leader behavior
have been identified: (1) directive, (2) supportive, (3) participative, and (4) achievement-oriented
behavior. The Vroom decision tree approach focuses only on decision making and leadership. The
basic premise is that effective decisions are best gauged by the quality of the decision and by
employee acceptance of the decision.
3. Describe the subordinate’s characteristics, leader behaviors, and environmental
characteristics used in path-goal theory. How do these factors combine to influence
motivation?
Subordinate’s characteristics include the subordinate’s perception of his or her own abilities and the
subordinate’s locus of control. Leader behaviors can be either directive, supportive, participative, or
achievement-oriented. Characteristics of the environment include task structure, authority system,
and social support from the work group. Path-goal theory asserts that effective leaders will choose
from the four types of leader behavior the one that best fits the demands of the situation including
characteristics of the subordinates and the environment.
4. In your own words, define political behavior. Describe four political tactics and give an
example of each.
In their definitions, students should include power and its use to obtain desired outcomes.
Inducement occurs when something is offered in exchange for support. An employee may suggest a
cost-cutting measure in exchange for a promotion. Persuasion happens when a manager changes the
opinions of others based on emotion or logic. A manager may prevail in a disagreement with peers
by offering superior evidence in support of his or her views. Managers create obligations by doing
favors and then asking for favors in return. An employee may “cover” for a tardy co-worker in
exchange for a similar favor the following day. Coercion involves the use of force or threats.
Managers who threaten to lay off workers who disagree with them are using coercion.
Questions for Analysis

5. Even though the trait approach to leadership has no empirical support, it is still widely used.
In your opinion, why is this so? In what ways is the use of the trait approach helpful to those
who use it? In what ways is it harmful to those who use it?
The trait approach is intuitively appealing, in spite of lack of empirical support. People want to
believe in a theory that is simple, consistent, and broadly applicable, for example, that great leaders
are physically attractive. Those who knowingly reject trait theories often display them
unconsciously, for example, expecting that a tall person is a more effective leader than a short one.
The trait approach can be helpful if the traits are skills, such as communication, that are in fact
related to effective leadership. However, trait theories do harm when they lead us to focus on
inappropriate variables, such as height or attractiveness, that have no relationship to leadership
ability.
6. The behavioral theories of leadership claim that an individual’s leadership style is fixed. Do
you agree or disagree? Give examples to support your position. The behavioral theories also
claim that the ideal style is the same in every situation. Do you agree or disagree? Again, give
examples.
Opinions will vary, and students should be able to give examples to support their responses. The
same is true for answers about an ideal leadership style.
7. A few universities are experimenting with alternative approaches, such as allowing students to
design their own majors, develop a curriculum for that major, choose professors and design
courses, or self-direct and self-evaluate their studies. These are examples of substitutes for
leadership. Do you think this will lead to better outcomes for students than a traditional
approach? Would you personally like to have that type of alternative approach at your
school? Explain your answers.
Better outcomes could be expected to the extent that students are intelligent, experienced, and
knowledgeable in designing curriculum. However, most students will acknowledge that professors
often have better skills in this area and should be allowed to make decisions. Students may prefer a
student-directed approach if they are confident of their abilities and like to have control and power.
Other students, who are more cautious or retiring, would prefer that decisions be made for them.
Questions for Application

8. Consider the following list of leadership situations. For each situation, describe in detail the
kinds of power the leader has. If the leader were the same but the situation changed—for
example, if you thought of the president as the head of his family rather than of the military—
would your answers change? Why?
 The President of the United States is Commander-in-Chief of the U.S. military.
 An airline pilot is in charge of a particular flight.
 Fans look up to a movie star.
 Your teacher is the head of your class.
The President has legitimate power through his job description, he may have referent power to the
extent that members of the military look up to and admire him, and he may have expert power if he
has served in the military. An airline pilot has legitimate power through the employer; he or she
could conceivably have coercion power, but it’s unlikely he or she would use it (“Do what I want or
I’ll crash this plane.”); he or she has referent power if passengers look up to them; and a pilot would
have expert power on an airline flight. A movie star primarily has referent power as a role model or
a charismatic leader, and may have expert power if he or she is seen as an expert in some aspect of
film making. Teachers have legitimate power through their schools; they have reward and coercive
power through their awarding of attention, praise, grades, and reprimands; they have referent power
if students admire them; and they have expert power because of their subject knowledge.
Clearly, the type of power a leader has depends heavily on the leadership situation. For example, a
manager may not have coercive power because he or she may not have the capability of punishing
co-workers, but they probably have coercive power as a parent because they can administer
spankings or other disciplinary actions.
9. Think about a decision that would affect you as a student. Use Vroom’s decision tree approach
to decide whether the administrator making that decision should involve students in the
decision. Which parts of the model seem most important in making that decision? Why?
Student responses will vary but an example might be as follows. Course schedules: (1) quality
requirement—low; it really doesn’t matter when the courses are scheduled; (2) commitment
requirement—low; it really doesn’t matter if students are enthusiastically committed to particular
course schedules. (3) The Vroom decision tree model then suggests that departments should make
course schedules without any real involvement of students.
10. Describe a time when you or someone you know was part of an in-group or an out-group.
What was the relationship between each of the groups and the leader? What was the
relationship between the members of the two different groups? What was the outcome of the
situation for the leader? For the members of the two groups? For the organization?
Clearly, answers will vary. Students should recognize that in-groups have closer relationships with
leaders than do out-groups. The relationship between members of in-groups and out-groups is
typically strained with misunderstandings and resentments on both sides. Leaders may benefit from
the dynamics of in-group/out-group interactions if the in-group members are in fact the most trusted
and highest performing workers. If not, the outcome may be too much conflict. Members of the in-
group are likely to experience better outcomes than members of the out-group. Organizations may
benefit from the high performance of in-group members, but they can suffer negative consequences
from the unhealthy competition and stress.
END OF CHAPTER EXERCISES
Building Effective Interpersonal Skills

I. Purpose
This exercise asks the students to examine the ways their attitudes toward work relationships reflect
their political behavior in the workplace.
II. Format
Students are given 20 statements that describe their use – actual or planned – of the described
behavior when they are on the job. They are asked to rate their response (rarely, occasionally, or
usually) to these questions.
III. Follow-Up
Students are asked to add up the total of responses that range from 20-100. Using the instructions
given in the exercise, they can determine their use of political power.
Building Effective Conceptual Skills

I. Purpose
Students will improve their conceptual skills through this exercise, which asks them to analyze an
instrument that purports to measure leadership.
II. Format
Students must work outside of class to find and complete the leadership quiz individually.
Discussion Questions 2 through 4 can be written or discussed in class, by individuals, small groups,
or the entire class. The quiz will take about 10–15 minutes to complete and discussion time will
vary.
III. Follow-Up
A. Visit Fortune magazine’s web site at
http://www.fortune.com/fortune/quizzes/careers/boss_quiz.html . Take the leadership
assessment quiz devised by management guru Stephen R. Covey. Then, look at Covey’s
scoring and comments.
B. Review carefully each question and each suggested answer. Do you see any correlation
between Covey’s questions and the theoretical models of leadership discussed in this chapter?
Which model or models do you think Covey is using? What details in his questions, answers,
or both led you to that conclusion?
Covey’s leadership quiz measures such things as a manager’s time management,
communication, delegation, motivating, goal-setting, and other skills. Students will find many
connections between Covey’s questions and a leadership model. For example, one item asks
students to agree or disagree with the statement, “Paying people well is the best way to
motivate them.” This approach to motivation is mentioned many times in Chapter 17.
C. Use the Internet to investigate Covey’s background, training, and experience. Does the
information you’ve gathered give you any clues about Covey’s attitudes and opinions about
leadership? Do you see any connection between Covey’s attitudes and the items on his quiz?
Explain.
Students may relate Covey’s family life, education, or religious background to his principles.
For example, Covey has 9 children and 36 grandchildren, which may provide a clue to his
attitudes towards family and personal time. That attitude is also prevalent in his work on
leadership, including this quiz.
D. Based on what you’ve learned from this exercise, how confident are you that Covey’s quiz is
an accurate measure of leadership ability? Explain.
The quiz clearly asks questions that have a reasonable relationship to leadership. However,
there is no indicator that this quiz has any empirical support. Nor is it likely that the quiz
measures every aspect, or even the most important aspects, of leadership. Finally, the students
should realize that self-styled leadership tests including this one are very prevalent, and most
are in fact not scientifically based or verifiable.
MANAGEMENT AT WORK
A Critique of Practical Leadership
The closing case describes ING Direct Canada, launched in 1997 by veteran Canadian banker Arkadi
Kuhlmann. The new direct banking business model featured no-frills, high-rate savings accounts, only
accessible online. Kuhlmann’s vision was to lead Americans back to saving and his mission was to
simplify financial products. Kuhlmann believes a leader must be the driving force behind the company’s
culture, saying: “I believe you need to direct the culture and let the culture direct the business.” He
believes the culture is what attracts and keeps committed employees.
Management Update: ING Direct was bought by Capital One in 2012 and changed the
company name to Capital One 360. The company was one of only a handful of banks
that were included in the launch of Apple Pay in 2014.
1. Case Question 1: First, review the definition and discussion of “The Organization’s Culture in
Chapter 3. Then address the following question: What effect is a company’s culture likely to have
on the efforts of management to practice each of the following approaches to leadership: LPC
theory, path-goal theory, the decision tree approach, and the LMX model?
The LPC theory suggests management change the situation if it does not align with the manager’s
leadership style. In order to change the situation managers could change the task (new procedures
or guidelines) or change the power structure (gaining authority or delegating authority). If not
communicated properly, a strong culture and organizational politics could undermine these changes.
There may not any problems if the culture is weak and disorganized with little office politics. The
path-goal theory would seem easier to incorporate into the culture. This may meet resistance if
workers perceive themselves as unable to perform or have an external locus of control. The
decision tree approach has proven effective but complex. If the organizational culture is not
accepting of adopting this approach, it could be easily undermined. In the case study, ING Direct
may be accepting of this theory. They have a strong culture and with training could effectively
implement the decision tree theory. Culture and organizational politics could play a role in
acceptance of the LMX theory. If implemented into a strong, cohesive culture, this could be quite
disruptive.
2. Case Question 2: “The way we look at leaders,” says Arkadi Kuhlmann, “has changed, and who we
follow has become ever more situational.” According to one researcher, situational leadership
evolved from a task-oriented versus people-oriented continuum…representing the extent that the
leader focuses on the required tasks or focuses on relations with followers…Task-oriented leaders
define roles for followers, give definite instructions, create organizational patterns, and establish
formal communication channels. In contrast, relation-oriented leaders practice concern for others,
attempt to reduce emotional conflicts, seek harmonious relations, and regulate equal participation.*
First, use this definition of situational leadership to get a sharper focus on the discussion of the topic
in the text (“Situational Approaches to Leadership”). Then explain how Kuhlmann’s concept of
“culture-driven leadership” can be understood within the context of situational approaches to
leadership.
Situational models assume that appropriate leader behavior varies from one situation to another.
The goal of a situational theory is to identify key situational factors and to specify how they interact
to determine appropriate leader behavior. Kuhlmann’s “culture-driven leadership” ties the
company’s mission, vision, and culture together. The leader must state the mission and embody the
company’s cause. The leader must be the driving force behind the company’s culture. Kuhlmann
believes you direct the culture and let the culture direct the business. Kuhlmann’s approach is to
take a broader view of leadership than situational models. He believes with the right culture and the
right vision, everyone will have the same focus.
3. Case Question 3: The same researcher writes that the transformational leader convinces his
followers to transcend their self-interest for the sake of the organization, while elevating “the
followers’ level of need on Maslow’s hierarchy from lower-level concerns for safety and security to
higher-level needs for achievement and self-actualization”…Over time, four components of
transformational leadership emerged: idealized influence, inspirational motivation, intellectual
stimulation, and individualized consideration.
First, review the section in the text on “Transformational Leadership” and, if necessary, the
discussion in Chapter 15 of “Maslow’s Hierarchy of Needs.” Then explain how Kuhlmann’s
concept of “culture-driven leadership” can be understood within the context of the transformational
approach to leadership.
Kuhlmann’s “culture-driven leadership” could be seen as transformational leadership. Kuhlmann went
beyond ordinary expectations by transmitting a strong sense of mission in his search for simplified
banking options, stimulated learning experiences by leading the online banking industry, and inspired
new ways of thinking by doing away with brick and motor bank branches.
4. Case Question 4: What about you? In 2011, Kuhlmann published a book entitled Rock Then Roll:
The Secrets of Culture-Driven Leadership, which gathers some ideas on management collected over
more than a decade at ING Direct. “The book,” he says, “is really for a younger audience – people
who are really looking around and trying to figure out how to make a difference.” He adds that a lot
of younger people who join us, starting at the entry level at ING Direct, are not totally motivated by
money. It’s amazing what percentage say, “Wait a minute, I’m committing time. I’m investing my
time, and that means a lot to me.” They have a little different focus. If you roll back the calendar a
couple of decades, it was all about, “How much money am I going to make?” There are still some
people like that, but it’s amazing how many people really think about the fact that they’re investing
time.†
Kuhlmann implies a spectrum of attitudes toward work life running from “How much money am I
going to make?” on the one end to “I’m investing time and that means a lot to me” on the other end.
Where would you put yourself on this spectrum? Have you pretty much been at the same place for
your adult life, or has your attitude shifted to some degree? In any case, explain how you currently
feel about the issue that Kuhlmann raises.
Responses to the questions will vary based on how students perceive their attitudes toward work
life.
*Jim Allen McClesky, “Situational, Transformational, and Transactional Leadership and

Leadership Development,” Journal of Business Studies Quarterly, 2014, Vol. 4, No. 4, pp. 117-130,
http://ibsq.org, on April 22, 2015.
†Chris Barth, “Corporate Culture for the Protest Generation,” Forbes, December 12, 2011,
www.forbes.com, on April 23, 2015.

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CHAPTER 16

Managing Leadership and Influence Processes

I. THE NATURE OF LEADERSHIP

A. The Meaning of Leadership

1. Leadership as a process is the use of noncoercive influence to shape the group’s or

II. GENERIC APPROACHES TO LEADERSHIP

1. The Michigan studies (conducted by Likert at the University of Michigan, 1940’s)

Managers using employee-centered leader behavior are interested in developing a

Extra Example: The Managerial Grid is used as an organization development technique.

III. SITUATIONAL APPROACHES TO LEADERSHIP

Cross-Reference: The path-goal theory of leadership is a direct extension of the

IV. RELATED APPROACHES TO LEADERSHIP

A. Substitutes for Leadership

V. EMERGING APPROACHES TO LEADERSHIP

VI. POLITICAL BEHAVIOR IN ORGANIZATIONS

C. Managing Political Behavior

6. Keep performance evaluations transparent, tie rewards directly to performance, and

END OF CHAPTER QUESTIONS

Questions for Review

Questions for Analysis

Questions for Application

END OF CHAPTER EXERCISES

Building Effective Interpersonal Skills

Building Effective Conceptual Skills

*Jim Allen McClesky, “Situational, Transformational, and Transactional Leadership and

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