CHAPTER 15

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

CHAPTER 16

LeadershipCHAPTER SUMMARYThe central theme of leadership is getting things done through people. Leadership is a subset of management. Early leadership research tried to develop a complete profile of the traits of the

successful leader. The findings of the trait approach to leadership are inconsistent.

The situational approach to leadership is based on the assumption that the instances of successful leadership are somewhat different and require a unique combination of leaders, followers, and leadership situations. The Tannenbaum-Schmidt Leadership Continuum is a situational approach that shows how leadership decision-making behavior can range from autocratic to democratic. According to these researchers, three primary forces influence a managers determination of which leadership behavior to use to make decisions:(1) forces in the manager, (2) forces in subordinates, and (3) forces in the situation. An update of this study shows that both societal and organizational environments are a force to be continued with in the decision environment. A decision-focused theory of leadership is the Vroom-Yetton-Jago Model, which focuses on how much participation to allow subordinates in the decision-making process. The OSU studies are a series of leadership investigations that concluded that leaders exhibit two main types of behavior: (1) structure behavior and (2) consideration behavior. The OSU studies resulted in a model that depicts four fundamental leadership styles, that are behavior patterns a leader establishes while guiding organizations in appropriate directions. The Michigan Studies were conducted at about the same time the OSU studies were being done. The Michigan Studies pinpointed two basic types of leader behavior: (1) job-centered behavior and (2) employee-centered behavior. The results of the OSU Studies and the Michigan Studies are very similar. The Hersey-Blanchard Life Cycle Theory of Leadership is a rationale for linking leadership styles with various situations so as to ensure effective leadership. The life cycle theory is based primarily on the relationship of follower maturity, leader task behavior, and leader relationship behavior. Situational theories of leadership are based on the concept of leader flexibilitythat successful leaders must change their leadership style as they encounter different situations. One strategy proposed by Fred Fiedler was to change the situation to fit the leaders style. According to the contingency theory of leadership, leader-member relations, task structure, and the position power of the leader are the three primary factors that should be used for moving leaders into appropriate leadership situations. Another leadership theory is the path-goal theory of leadership, which suggests that the primary activity of a leader should be to make desirable and achievable rewards available to organization members as a result of attaining organizational goals and to clarify the kinds of behavior that must be performed. According to this theory, leaders perform four primary types of behavior: (1) directive, (2) supportive, (3) participative, and (4) achievement.

Transformational leadership is receiving more attention recently because of the dramatic changes that many organizations are going through. Coaching leadership instructs followers on how to meet the special challenges they face. Superleadership helps followers to lead themselves. Servant leadership views leaders primary role as helping followers in their quests to satisfy personal needs, aspirations, and interests. Entrepreneurial leadership views the leader as self-employed. More attention to women as leaders has developed and it has been found that women tend to lead in a transformational manner as opposed to men who lead in a transactional manner.

LEARNING OBJECTIVES1. A working definition of leadership

2. An understanding of the relationship between leading and managing

3. An appreciation for the trait and situational approaches to leadership

4. Insights into using leadership theories that emphasize decision-making situations

5. Insights about using leadership theories that emphasize more general organizational situations

6. An understanding of alternatives to leader flexibility

7. An appreciation of emerging leadership styles and leadership issues of today

Chapters Target Skill

Leadership Skill: the ability to direct the behavior of others toward the accomplishment of objectives.

CHALLENGE CASE

IWATA FACES MANY DIFFERENT ISSUES AT NINTENDO

Satoru Iwata is the president of Nintendo, the video console maker. He took over the company at a difficult time in its history and turned it around. He faces a new challenge now. Sales of the companys DS have declined and competition forced down the price of the Wii. As a leader, Iwata has faced many different issues over the years turning around an organization, moving from one company to another, sparking innovation, handling company growth, creating humility within a corporate culture, and handling declining profits. The chapter discusses (1) how to define leadership, (2) the difference between a leader and a manager, (3) the trait approach to leadership, (4) the situational approach to leadership, (5) leadership today, and (6) current topics in leadership.

See all related teaching notes for Challenge Case in the Management Skill Activities

EXPLORING YOUR MANAGEMENT SKILL: PART 1CHAPTER OUTLINEI. CHALLENGE CASE: IWATA FACES MANY DIFFERENT ISSUES AT NINTENDO

II. DEFINING LEADERSHIP

A.Leadership is the process of directing the behavior of others toward the

accomplishment of some objectives.

B.Leader versus Manager

1.Leading is not the same as managing.

2.Leadership is a subset of management.

3.Managing is broader in scope than leading, and focuses on behavioral as well as

nonbehavioral issues.

4.Leading emphasizes mainly behavioral issues.

III. THE TRAIT APPROACH TO LEADERSHIP

A.The trait approach to leadership, based on early leadership research, assumed that a good leader is born and not made.

B.No trait or combination of traits guarantees that a leader will be successful.

IV. THE SITUATIONAL APPROACH TO LEADERSHIP: A FOCUS ON LEADER

BEHAVIOR

A.The situational approach is based on the assumption that all instances of successful

leadership are somewhat different and require a unique combination of leaders,

followers, and leadership situations.

B.Leadership Situations and Decisions

1. The Tannenbaum-Schmidt Leadership Continuum

a. The Tannenbaum-Schmidt Leadership Continuum emphasizes decision-making ranging from autocratic to democratic leadership. (See Figure 16.2.)

b. Determining How to Make Decisions as a Leader

1. Forces in the Manager

a. These include a managers values, level of confidence in

subordinates, personal leadership strengths, and tolerance for

ambiguity.

2. Forces in Subordinates

a. Managers should be aware of forces within subordinates that

influence the managers determination of how to make decisions as a

leader.

3. Forces in the Situation

a. The first situational force involves the type of organization in which

the leader works.

b. Another force is the effectiveness of group members working

together.

c. The problem to be solved is another force.

d. The final force is the decision time available.

c. Determining How to Make Decisions as Leader: An Update

1. According to Tannenbaum and Schmidt, the relationship among

forces is becoming more complex and more interrelated than ever.

2. This increased complexity makes it more difficult for the leader to

determine how to lead.

2.The Vroom-Yetton-Jago Model

a. Focuses on how much participation is allowable to subordinates in the

decision-making process.

b. The VYJ model is built on two premises:

1. Organizational decisions should be high quality.

2. Subordinates should accept and be committed to organizational decisions that are made.

a. Decision Styles

1. The VYJ model suggests a continuum of five different decision

styles managers can use, ranging from autocratic to group-focused.

(See Figure 16.3.)

b. Using the Model

1. The VYJ model is a method for determining when a leader should

use which decision style. (See Figure 16.4.)

C. Leadership Behaviors

1. The OSU Studies

a. The OSU studies are a series of leadership investigations that concluded that

leaders exhibit two main types of behavior:

1. Structure behavior is leadership activity that (1) delineates the relationship

between the leader and the leader's followers or (2) establishes well-

defined procedures that the followers should adhere to in performing their

jobs.

2. Consideration behavior is leadership behavior reflecting friendship,

Mutual trust, respect, and warmth in the relationship between the leader and the followers.

b. The OSU studies resulted in a model depicting four fundamental leadership

styles. (See Figure 16.5.)

c. Leadership style is the behavioral pattern a leader establishes while guiding

organization members in appropriate directions.

2. The Michigan Studies

a. These studies pinpointed two basic types of leader behavior: job-centered and

employee-centered.

1. Job-centered Behavior

a. Job-centered behavior focuses primary attention on the work a

subordinate is doing.

2. Employee-centered Behavior

a. Employee-centered behavior focuses primary attention on

subordinates as people.

4. Effectiveness of Various Leadership Styles

a. One should be cautious about concluding that any single leadership style is

more effective than any other.

b. A.K. Korman suggests that a worthwhile contribution to leadership literature

would be a rationale for systematically linking appropriate styles with various

situations so as to ensure effective leadership.

5. The Hersey-Blanchard Life Cycle Theory of Leadership

a. The life cycle theory of leadership hypothesizes that leadership styles should

reflect primarily the maturity level of the followers.

1. Maturity

a. Maturity, in the life cycle theory, is an individual's ability to

independently perform the job, to assume additional responsibility,

and to desire success.

2. The Life Cycle Model

a. The life cycle theory suggests that a leadership style will be effective

only if it is appropriate for the maturity level of the followers.

3. Exceptions to the Model

a. If there is a short-term deadline to meet, a leader might have to

accelerate production through high-task/low-relationship style.

4. Applying Life Cycle Theory

a. This approach owes its acceptance to its intuitive appeal

5. Fiedlers Contingency Theory (See Figure 16.7.)

a. Leader flexibility is the ability of leaders to change their leadership

styles as they encounter different situations.

b. One strategy proposed is changing the organizational situation to fit the

leaders style, rather than changing the leader's style to fit the

organizational situation.

c. Fiedlers contingency theory of leadership hypothesizes that, in any

given leadership situation, success is determined primarily by:

1. The type of relationship that exists between the leader and the

followers

2. The degree to which the task being performed by the followers is

structured

3. The degree of position power possessed by the leader

6. The Path-Goal Theory of Leadership

a. Its primary focus is on how leaders can increase employee effort and

productivity by clarifying performance goals and the path to be taken to

achieve those goals.

1. Leadership Behavior

a. Leaders perform four primary behavior types:

1. Directive behavior

2. Supportive behavior

3. Participative behavior

4. Achievement behavior

2. Adapting Behavior to Situation

a. The path-goal theory suggests that managers can be successful by

appropriately matching these four behavior types to situations

they face.

IV.LEADERSHIP TODAY

A. Transformational Leadership

1. Transformational leadership is leadership that inspires organizational success by

profoundly affecting followers beliefs in what an organization should be, as

well as followers values like justice and integrity.

2. Transformational leadership creates a sense of duty, encourages new ways of

handling problems, and promotes learning for all organization members.

B. Coaching

1. Coaching is leadership that instructs followers on how to meet organizational

challenges.

2. Characteristics of an effective coach can be found in Table 16.2.

3. A successful coach is characterized by the following:

a. Listens closely

b. Gives emotional support

c. Shows by example what constitutes appropriate behavior

C. Superleadership

1. Superleadership is leading by showing others how to lead.

D.Servant Leadership

1. Servant leadership is leadership through helping followers in their quests to

satisfy personal needs, aspirations, and interests.

E. Entrepreneurial Leadership

1. Entrepreneurial leadership is based on the attitude that the leader is self-

employed.

CLASS DISCUSSION HIGHLIGHT

Modern Research and Leadership Skill

This is an interesting study that allows you to highlight the benefits of transformational leadership. The authors found no main effect regarding the influence of transformational leadership on team performance.

However, the authors found that the positive influence of diversity depends on leadership. You may want to point out that there were no main effects of diversity in terms of age or nationality. The positive aspects of diversity were only evident when the groups had transformative leaders.

The authors of the study describe diversity as potential and suggest that transformative leaders are able to unlock this potential.

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