Chapter Fourteen
Leadership
McGraw-Hill/Irwin
Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
After reading the material in this chapter,
you should be able to:
• Review trait theory research, and discuss
the takeaways from both the trait and
behavioral theories of leadership.
• Explain, according to Fiedler’s contingency
model, how leadership style interacts with
situational control.
• Discuss House’s revised path-goal theory
and Hersey and Blanchard’s situational
leadership theory.
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After reading the material in this chapter,
you should be able to:
• Describe the difference between transactional
and transformational leadership and discuss how
transformational leadership transforms followers
and work groups.
• Explain the leader-member exchange (LMX)
model of leadership and the concept of shared
leadership.
• Review the principles of servant leadership and
discuss Level 5 leadership.
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What Does Leadership Involve?
• Leadership – influencing employees to
voluntarily pursue organizational goals
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Trait Theory
• Leader trait - personal characteristics that
differentiate leaders from followers.
• Leadership prototype - mental
representations of the traits and behaviors
possessed by leaders.
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Gender and Leadership
• Men and women were seen as displaying
more task and social leadership,
respectively
• Women used a more democratic or
participative style than men and men used
a more autocratic and directive style than
women
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Gender and Leadership
• Men and women were equally assertive
• Women executives, when rated by their
peers, managers, and direct reports,
scored higher than their male counterparts
on a variety of effectiveness criteria
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Key Positive Leadership Traits
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Behavioral Styles Theory
• The Ohio State Studies identified two
critical dimensions of leader behavior.
- Consideration: creating mutual respect and
trust with followers.
- Initiating structure: organizing and defining
what group members should be doing.
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Peter Drucker’s
Tips for Improving Leadership Effectiveness
1. Determine what needs to be done.
2. Determine the right thing to do for the
welfare of the entire enterprise or
organization.
3. Develop action plans that specify desired
results, probable restraints, future revisions,
check-in points, and implications for how
one should spend his or her time.
4. Take responsibility for decisions.
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Peter Drucker’s
Tips for Improving Leadership Effectiveness
5. Take responsibility for communicating
action plans and give people the
information they need to get the job done.
6. Focus on opportunities rather than
problems.
7. Run productive meetings.
8. Think and say “we” rather than “I”.
9. Listen first, speak last.
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Takeaways from Behavioral Styles Theory
• Leader behaviors can be systematically
improved and developed.
• There is no one best style of leadership.
• It is important to consider the difference
between how frequently and how
effectively managers exhibit various leader
behaviors.
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Situational Theories
• Situational
theories - propose
that leader styles
should match the
situation at hand.
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Fiedler’s Contingency Model
The performance of a leader depends on
two interrelated factors:
•The degree to which the situation gives the
leader control and influence
•The leader’s basic motivation
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Question?
What refers to the amount of influence the
leader has in his immediate work
environment?
A. Contingency control
B. Situational control
C. Conditional influence
D. Position power
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Fiedler’s Contingency Model
• Situational control – refers to the amount
of control and influence the leader has in
his immediate work environment
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Three Dimensions of Situational Control
• Leader-member relations – the extent to which
the leader has the support, loyalty, and trust of
the work group
• Task structure – concerned with the amount of
structure contained within tasks performed by the
work group
• Position power – the degree to which the leader
has formal power to reward, punish, or otherwise
obtain compliance from employees
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Representation of
Fiedler’s Contingency Model
Figure 14-1
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Path-Goal Theory
• Describes how leadership effectiveness is
influenced by the interaction between four
leadership styles – directive, supportive,
participative, achievement-oriented
• Contingency factors – variables that
influence the appropriateness of a
leadership style
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Path-Goal Theory Reformulated
Three key changes:
1. Leadership is more complex and
involves a greater variety of leader
behavior.
2. The role of intrinsic motivation and
empowerment in influencing leadership
effectiveness
3. Shared leadership
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A General Representation of
House’s Revised Path-Goal Theory
Figure 14-2
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Categories of Leader Behavior
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Hershey and Blanchard’s
Situational Leadership Model
• Effective leader behavior depends on the
readiness level of a leader’s followers.
• Readiness – follower’s ability and
willingness to complete a task
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Situational
Leadership Model
Figure 14-3
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Transactional Leadership
• Transactional leadership - focuses on the
clarifying employees’ roles and providing
rewards contingent on performance.
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Transformational Leadership
• Transformational
leadership transforms
employees to
pursue
organizational goals
over self-interests.
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Question?
Which transformational leader behavior
encourages employees to question the
status quo?
A. Inspirational motivation
B. Idealized influence
C. Individualized consideration
D. Intellectual stimulation
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Transformational Leader Behaviors
• Inspirational motivation – establishing an
attractive vision of the future, the use of
emotional arguments, and exhibition of
optimism and enthusiasm
• Idealized influence – sacrificing for the
good of the group, being a role model, and
displaying high ethical standards
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Transformational Leader Behaviors
• Individualized consideration – providing
support, encouragement, empowerment,
and coaching to employees
• Intellectual stimulation – behavior that
encourages employees to question the
status quo and to seek innovative solutions
to organizational problems
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A Transformational Model of
Leadership
Figure 14-4
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Maintaining Ethical Transformational
Leadership
1. Create and enforce a clearly stated code of
ethics.
2. Recruiting, selecting, and promoting people
who display ethical behavior.
3. Develop performance expectations around the
treatment of employees.
4. Train employees to value diversity.
5. Identify, reward, and publicly praise employees
who exemplify high moral conduct.
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The Leader-Member Exchange (LMX)
Model of Leadership
• Focuses on the quality of relationships
between managers and subordinates as
opposed to the behaviors or traits of either
leaders or followers.
• Assumes that leaders develop unique oneon-one relationships with direct reports.
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The Leader-Member Exchange (LMX)
Model of Leadership
• in-group exchange - a partnership
characterized by
mutual trust, respect and liking
• out-group exchange - a partnership
characterized by
a lack of mutual trust, respect and liking
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Managerial Implications
• Leaders are encouraged to establish highperformance expectations for all of their
direct reports.
• Managers should be careful that they don’t
create a homogeneous work environment.
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Shared Leadership
• Shared leadership - simultaneous,
ongoing, mutual influence process in which
people share responsibility for leading
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Shared Leadership
Table 14-3
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Servant Leadership
• Servant leadership - focuses on
increasing services to others rather than
oneself
Read the Servant
Leader newsletter
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Characteristics of the Servant-Leader
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The Level 5 Hierarchy
Figure 14-5
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Video: Martha Stewart
• In the accompanying
supplementary video
“Martha Stewart and
Celebrity CEOs”
(5:09), the impact of
celebrities as leaders
is examined.
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