M A N A G E M E N TM A N A G E M E N T11stst E D I T I O N E D I T I O N

Gulati | Mayo | NohriaGulati | Mayo | Nohria

Chapter 12Chapter 12

LEADERSHIP INLEADERSHIP IN ORGANIZATIONSORGANIZATIONS

INDIVIDUAL INDIVIDUAL PERSPECTIVEPERSPECTIVE

©South-Western, a part of Cengage Learning©South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook

Learning ObjectivesLearning Objectives

• Explain why the study of leadership is so complicated Explain why the study of leadership is so complicated and identify some of the various debates about the study and identify some of the various debates about the study of leadershipof leadership

• Describe the different theories of leadership that have Describe the different theories of leadership that have emerged from the study of individual readersemerged from the study of individual readers

• Describe how leaders are influenced by followers and Describe how leaders are influenced by followers and describe the theories of leadership that have been describe the theories of leadership that have been derived from analyzing the leader-follower dynamicderived from analyzing the leader-follower dynamic

• Explain how the situational context influences the Explain how the situational context influences the exercise of exercise of leadershipleadership

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The Leader:The Leader:Who is a Leader? Traits and SkillsWho is a Leader? Traits and Skills

The Leader:The Leader:Who is a Leader? Traits and SkillsWho is a Leader? Traits and Skills

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Explained leadership by examining the traits and characteristics of individuals considered to be historically great leaders

Explained leadership by examining the traits and characteristics of individuals considered to be historically great leaders

“Great Man” theory

“Great Man” theory

Tries to reveal a set of universal traits and skills that are relevant in all leadership situations

Tries to reveal a set of universal traits and skills that are relevant in all leadership situations

Traits-based leadership

theory

Traits-based leadership

theory

• Self-confidence• Initiative• Risk taking• Persistence• High level of physical energy • Motivation to complete tasks

• Self-confidence• Initiative• Risk taking• Persistence• High level of physical energy • Motivation to complete tasks

Common leadership

traits

Common leadership

traits

Leadership SkillsLeadership SkillsLeadership SkillsLeadership Skills

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A leader’s ability to understand the internal and external environments, make decisions with sound reasoning, and communicate effectively

A leader’s ability to understand the internal and external environments, make decisions with sound reasoning, and communicate effectively

Cognitive skills

Cognitive skills

A leader’s knowledge about an organization and job-related activities

A leader’s knowledge about an organization and job-related activities

Technical skills

Technical skills

A leader’s ability to interact with othersA leader’s ability to interact with othersInterpersonal

skillsInterpersonal

skills

The core values and fundamental beliefs that drive behavior in variable situations

The core values and fundamental beliefs that drive behavior in variable situationsCharacterCharacter

Leadership Style Leadership Style Leadership Style Leadership Style

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The pattern of behaviors that leaders use in situationsThe pattern of behaviors that leaders use in situations

Behaviors that prioritize the accomplishment of a task in an efficient and reliable way

Behaviors that prioritize the accomplishment of a task in an efficient and reliable way

Task-oriented behavior

Task-oriented behavior

Behaviors that prioritize interpersonal relationships, the value of workers as humans, and a strong commitment to the unit and its mission

Behaviors that prioritize interpersonal relationships, the value of workers as humans, and a strong commitment to the unit and its mission

Relations-oriented behavior

Relations-oriented behavior

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Figure 12.1 -The Managerial Grid

The Charismatic LeaderThe Charismatic LeaderThe Charismatic LeaderThe Charismatic Leader

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Individuals who arouse strong followership through inspirational visions and/or compelling personal attributes

Individuals who arouse strong followership through inspirational visions and/or compelling personal attributes

Charismatic leaders

Charismatic leaders

• Exhibit extreme self-confidence about their values

• Possess willingness to take personal risks

• Have a strong moral conviction to exercise their power positively

• Communicate vision through powerful imagery, symbolism, and metaphor

• Exhibit extreme self-confidence about their values

• Possess willingness to take personal risks

• Have a strong moral conviction to exercise their power positively

• Communicate vision through powerful imagery, symbolism, and metaphor

Patterns in charismatic

leaders

Patterns in charismatic

leaders

Transformational Leadership TheoryTransformational Leadership TheoryTransformational Leadership TheoryTransformational Leadership Theory

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The set of behaviors that leaders use to transform, or change, their organization and individuals for the better

The set of behaviors that leaders use to transform, or change, their organization and individuals for the better

Transformationalleadership

Transformationalleadership

• Charisma and vision

• Inspirational motivation

• Intellectual stimulation

• Individualized consideration

• Charisma and vision

• Inspirational motivation

• Intellectual stimulation

• Individualized consideration

Components of transformational

leadership

Components of transformational

leadership

Transactional Leadership TheoryTransactional Leadership TheoryTransactional Leadership TheoryTransactional Leadership Theory

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The process of a leader providing something the subordinates want

The process of a leader providing something the subordinates want

Transactional leadership

Transactional leadership

• Contingent reward

• Active management-by-exception

• Passive management-by-exception

• Contingent reward

• Active management-by-exception

• Passive management-by-exception

Components of transactional

leadership

Components of transactional

leadership

Components of Transactional LeadershipComponents of Transactional LeadershipComponents of Transactional LeadershipComponents of Transactional Leadership

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A method of leadership done passively or actively that describes when leaders should intervene to increase a subordinate’s effort to meet standards

A method of leadership done passively or actively that describes when leaders should intervene to increase a subordinate’s effort to meet standards

Management-by-exception

Management-by-exception

The exchange process between leaders and followers in which leaders offer rewards to subordinates in exchange for their services

The exchange process between leaders and followers in which leaders offer rewards to subordinates in exchange for their services

Contingent reward

Contingent reward

Leader-Member Exchange TheoryLeader-Member Exchange TheoryLeader-Member Exchange TheoryLeader-Member Exchange Theory

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A method of leadership in which leaders treat each member differently, and as a result, develop unique relationships with each member

A method of leadership in which leaders treat each member differently, and as a result, develop unique relationships with each member

Leader-member exchange (LMX)

theory

Leader-member exchange (LMX)

theory

Favored subordinates

Favored subordinates who are assigned more interesting tasks, given greater responsibility

and authority, and receive more tangible

rewards and more resources

Subordinates who are expected to simply

comply with formal rules and do what is required of them; as a result, they

receive the standard benefits of the job

In-groups Out-groups

The LMX Relationship Life Cycle:The LMX Relationship Life Cycle:The Role-Making ProcessThe Role-Making Process

The LMX Relationship Life Cycle:The LMX Relationship Life Cycle:The Role-Making ProcessThe Role-Making Process

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Acquaintance phase - When a leader offers the subordinate a chance to increase his or her responsibility in the group and the subordinate must accept the new role

Acquaintance phase - When a leader offers the subordinate a chance to increase his or her responsibility in the group and the subordinate must accept the new role

Stranger phase - Leaders and subordinate interactions are formal and based on organizational policies

Stranger phase - Leaders and subordinate interactions are formal and based on organizational policies

Mature partnership phase - Leaders and followers develop strong mutual trust, respect, and obligation

Mature partnership phase - Leaders and followers develop strong mutual trust, respect, and obligation

Phases in which a leader and follower undergo a process that dictates whether followers become part of the in-group or out-group

Phases in which a leader and follower undergo a process that dictates whether followers become part of the in-group or out-group

Relationship life cycle

Relationship life cycle

1

2

3

The Leader, the Followers, and the SituationThe Leader, the Followers, and the SituationThe Leader, the Followers, and the SituationThe Leader, the Followers, and the Situation

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Leaders are more effective depending on the favorability of a leadership situation, which is described by leader-member relations, task structure, and positional power of the leader

Leaders are more effective depending on the favorability of a leadership situation, which is described by leader-member relations, task structure, and positional power of the leader

Fiedler contingency model

Fiedler contingency model

Leader-member relations• Quality of relationships between leaders and

followers

Task structure• Extent to which standard procedures are in place

to complete a task

Positional power• Extent to which a leader has authority to evaluate

performance and administer rewards or punishments

Hersey and Blanchard’s Situational TheoryHersey and Blanchard’s Situational TheoryHersey and Blanchard’s Situational TheoryHersey and Blanchard’s Situational Theory

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The amount of relationship-related behaviors a leader exhibits

The amount of relationship-related behaviors a leader exhibits

The amount of task-related behaviors a leader exhibits

The amount of task-related behaviors a leader exhibits

The level at which followers are mature enough to perform a specific task, function, or objective

The level at which followers are mature enough to perform a specific task, function, or objective

Leaders have the flexibility and range of skills to adapt their leadership behavior. This type of leadership is based on the interplay of:

Leaders have the flexibility and range of skills to adapt their leadership behavior. This type of leadership is based on the interplay of:

Situational leadership

theory

Situational leadership

theory

1

2

3

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Figure 12.2 - Leadership Styles Mapped to Subordinates’ Characteristics

House’s Path-Goal TheoryHouse’s Path-Goal TheoryHouse’s Path-Goal TheoryHouse’s Path-Goal Theory

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The most important aspect in leadership is the follower’s expectation that a task can be accomplished and that it will lead to rewards

The most important aspect in leadership is the follower’s expectation that a task can be accomplished and that it will lead to rewards

Path-goal theory of

leadership

Path-goal theory of

leadership

• Structured or unstructured

• Repetitive or diverse

• Simple or complex

• Structured or unstructured

• Repetitive or diverse

• Simple or complex

Task characteristics

Task characteristics

• Directive

• Participative

• Supportive

• Achievement-oriented

• Directive

• Participative

• Supportive

• Achievement-oriented

Leader behaviorsLeader

behaviors

• Preferences for structure

• Desire for control

• Confidence in ability

• Preferences for structure

• Desire for control

• Confidence in ability

Subordinates’ characteristicsSubordinates’ characteristics

Leadership Substitutes and NeutralizersLeadership Substitutes and NeutralizersLeadership Substitutes and NeutralizersLeadership Substitutes and Neutralizers

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Aspects of a situation that make leadership unnecessaryAspects of a situation that make leadership unnecessarySubstitutesSubstitutes

Aspects of a situation that hinder a leader’s ability to act a particular way

Aspects of a situation that hinder a leader’s ability to act a particular wayNeutralizersNeutralizers

KEY TERMSKEY TERMS

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CharacterCharacter

Charismatic leadersCharismatic leaders

Cognitive skillsCognitive skills

Contingent rewardContingent reward

Fiedler contingency modelFiedler contingency model

““Great Man” theoryGreat Man” theory

Interpersonal skillsInterpersonal skills

Leader-member exchange theoryLeader-member exchange theory

Leadership neutralizersLeadership neutralizers

Leadership styleLeadership style

Leadership substitutesLeadership substitutes

Management-by-exceptionManagement-by-exception

Managerial gridManagerial grid

Path-goal theory of leadershipPath-goal theory of leadership

Relationship life cycleRelationship life cycle

Relations-oriented behaviorRelations-oriented behavior

Situational leadershipSituational leadership

Task-oriented behaviorTask-oriented behavior

Technical skillsTechnical skills

Traits-based leadership theoryTraits-based leadership theory

Transactional leadershipTransactional leadership

Transformational leadershipTransformational leadership