Leadership
Content
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
CHAPTER 16
Leadership
CHAPTER SUMMARY
The 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 manager’s 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 flexibility—that 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 leader’s 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-
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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 OBJECTIVES
1. 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
Chapter’s 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
company’s 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 1
CHAPTER OUTLINE
2
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
I. 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 manager’s 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 manager’s 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
3
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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.)
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.
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 welldefined 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
4
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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. Fiedler’s 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
leader’s style, rather than changing the leader's style to fit the
organizational situation.
c. Fiedler’s 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
5
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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 selfemployed.
6
CHAPTER 16
Leadership
CHAPTER SUMMARY
The 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 manager’s 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 flexibility—that 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 leader’s 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-
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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 OBJECTIVES
1. 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
Chapter’s 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
company’s 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 1
CHAPTER OUTLINE
2
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
I. 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 manager’s 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 manager’s 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
3
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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.)
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.
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 welldefined 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
4
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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. Fiedler’s 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
leader’s style, rather than changing the leader's style to fit the
organizational situation.
c. Fiedler’s 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
5
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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 selfemployed.
6
