Chapter 14


Managers carry out a broader set of functions than do leaders. Managers focus on using their authority to cope with complexity, see that things are done right, and assure resources are used efficiently. Leaders emphasize change and continuous improvement, and they seek to visualize the right thing to do by questioning practices and possibilities.

Leaders motivate groups by their behavior. Research shows that all leaders share common traits. At the behavioral level of transacting with others, leaders can be broken into two general types: task-oriented and relationship-oriented. Task-oriented leaders influence to get the job done, while relationship-oriented leaders influence to develop affiliations.

Because using the leader抯 behavior to predict effectiveness with a group has yielded inconsistent results, newer leadership models incorporate situational variables. Fielder uses three contingency variables: task structure, position power, and leader-member relations. Hersey and Blanchard focus on how the leader抯 task and/or relationship behaviors are adapted to follower抯 competencies. House and Mitchell state that the leader抯 role is to clarify goals and guide group members toward them.

In larger organizations, a different form of leadership may be necessary. In these organizations, the leader acts as a visionary pathfinder and a transformer of organizational strategy and practice. These leaders get extraordinary things done by being dedicated to continuous improvement and enabling others to act.

Lastly, some research suggests that leadership is not always necessary and, in fact, may even get in the way. Challenges for leadership in the future will be how to overcome inherent difficulties (such as playing favorites), gender and cultural diversity equality issues, and how to lead in an era of corporate downsizing. Anyone can lead in good times; the challenge is how to lead when times of are difficult.



Leadership Grid


contingency theory


task-motivated style


relationship-motivated style


situational leadership theory (SLT)


path-goal leadership theory

social-cognitive theory

instrumental leader behaviors


supportive relationship leader behaviors

task-oriented behavior

transformational leaders

employee-oriented behavior

pathfinding leader

initiating structure

leader-member exchange theory

showing consideration

leadership style



  1. Distinguish between the art of leadership and the practice of management.
  2. Critique the premise that personality traits separate leaders from nonleaders.
  3. Contrast two types of group-centered leadership theories--those based on cognitive styles and those focused on observable behaviors.
  4. Explain why most current theories of leadership are based on situational contingencies.
  5. Contrast transformational leadership with group-centered leadership.
  6. Show why leadership is not necessary for all organizational circumstances.


*****Use PPT 14-0 (PowerPoint slide #14-0) here: "Leadership"*****"
*****Use PPT 14-1 here: "Leadership is both a process and a set of characteristic behaviors"*****

  1. Larry Bossidy: Growth Separates Winners From Losers.
    1. Larry Bossidy is highly sought after manager and leader.
    2. He believes that growth is the most challenging target for organizations.
    3. He has shown great success at doing two things for his companies.
      1. Increasing sales.
      2. Increasing productivity.
    4. He believes that a strategist divorced from operations is an incomplete person. He manages and leads from "in the field."
    5. Leaders such as Larry Bossidy are the people who create, grow, and transform organizations.

*****Use Learning Objective #1 here*****
*****Use PPT 14-2 here: "Managers versus Leaders"*****

  1. What Distinguishes Managers From Leaders?
    1. Managers typically devote most of their day to managing resources, projects, deadlines, and so on. Leaders excite people about opportunities and empower them to innovate and excel.
    2. Managers have the authority to be in charge.
      1. Managers diagnose and influence systems and are responsible for controlling activities to keep the flow of work running smoothly.
      2. Authority is the right to make decisions and commit organizational resources based on position within the organization.
      3. Accountability means the manager is answerable for the setting of appropriate goals, efficient allocation of resources, and task accomplishment within the unit.

*****Use Key Concepts managers, authority, and accountability here*****

    1. Leaders influence others to follow.
      1. Leaders inspire. They make people follow them, they do not need official authority to do so.
        1. Formal leaders--hold position (such as president).
        2. Informal leaders--their influence is unrelated to position.
      2. Leadership is the process of providing direction, energizing others, and obtaining their voluntary commitment to the leader抯 vision.
      3. A leader is the person who creates the vision and goals, then energizes others to voluntarily commit to that vision. A vision is an articulated picture of the future that conveys purpose, direction, and priorities.

*****Use PPT 14-3 here: "Exhibit 14-1: Kotter抯 Distinction Between Managers and Leaders"*****

    1. Managers do things right, leaders do the right things.
      1. Managers emphasize structures, controls, and actions intended to achieve predictability and order.
      2. Leaders promote change and are the trendsetters of organizational life.

***** Use Your Turn here "Your Leadership Potential"*****
*****Use Study and Discussion Question #1 here*****

    1. Qualities that distinguish leaders from followers.
      1. At one time, it was believed that great leaders were born into the wealthier social strata.
      2. Today, we acknowledge that leaders can be developed through life experiences.

*****Use Learning Objective #2 here*****
*****Use PPT 14-4 here: "Trait Approach"*****
*****Use PPT 14-5 here: "Exhibit 14-2: Traits that Distinguish Leaders "*****

    1. Leaders may be perceived as having distinguishing personalities.
      1. For the last half century, people have tried to identify the personality traits that make for effective leaders; however, they have been largely unsuccessful.
      2. Nevertheless, the interest in personality traits of leaders continues to grow. Social-cognitive theory holds that people use idealized personal traits to distinguish leaders from nonleaders.
      3. Contemporary research has found that six personality traits influence perception about leaders:
        1. Intelligence.
        2. Adjustment.
        3. Sensitivity.
        4. Masculinity.
        5. Extroversion.
        6. Dominance.
      4. Research has also found that followers look most for credibility in their leaders. Credibility usually refers to being honest, competent, forward-looking, and inspiring.

*****Use Study and Discussion Question #2 here*****
***** Use World Watch here Brazilian Firm 慔unts the Woolly Mammoth?quot;"*****
*****Use PPT 14-6 here: "Leader Behaviors"*****

    1. Behavior as a characteristic of leadership.
      1. Personality feeds into behavior. Recent research has attempted to focus on behavior of leaders.
      2. University of Michigan research.
        1. Research conducted by Rensis Likert and others concluded that there were two behavior patterns to leadership at the group level.
        2. One was task-oriented behavior where the focus was on careful supervision of group members to obtain consistent work methods and accomplishment of the job.
        3. The other was employee-oriented behavior where the aims at satisfying the social and emotional needs of the group members were important.
        4. The Michigan researchers believed that these two behavioral orientations were mutually exclusive. They also believed--but did not confirm-- that groups led by employee-oriented leaders had better work attitudes and higher productivity.
      3. Ohio State University research.
        1. Research conducted by Edwin Fleishman and others also concluded that that there are two behavior patterns to leadership at the group level.
        2. The first is an initiating structure which was defined as being leader behavior intended to establish well-defined patterns of organization, channels of communication, and methods of procedure between leader and group.
        3. The second was showing consideration which was defined as leader behavior that brings out friendship, mutual trust, respect, and warmth in the relationship between the leader and members of their staff.
        4. The Ohio State researchers did not purport these behaviors to be mutually exclusive. They did, however, concede that showing consideration had some relationship to positive employee attitudes.

*****Use Learning Objective #3 here*****
*****Use PPT 14-7 here: "Exhibit 14-3: Leader Behaviors and Decision Styles"*****
*****Use Eye on Ethics here "International Business Ethics"*****

      1. Leader behavior and decision styles.
        1. Kurt Lewin and others at the University of Iowa identified three major decision styles:
          1. Autocratic (take charge, gives assignments).
          2. Democratic (is easygoing, suggests, encourages).
          3. Laissez-faire (is passive, noncommittal).
        2. Later, a fourth style was added--human relations (is participative, emphasizes group cohesiveness).

*****Use Study and Discussion Questions #3 & 4 here*****
*****Use PPT 14-8 here: "Exhibit 14-4: Blake & Mouton抯 Leadership Grid"*****

    1. Leadership style as a state of mind.
      1. Leadership style involves the cognitions (the motives, attitudes, goals, and sources of satisfaction that exist in the mind of the leader) that guide interactions with group members.
      2. Some leaders are most concerned with getting the job done, while others concentrate on their personal relationships with their employees.
      3. The Leadership Grid is a matrix that identifies five leadership styles by interpreting leader抯 attitudes about concern for production and concern for people. Examples of the styles are:
        1. Country club management.
        2. Team management.
        3. Middle-of-the-road management.
        4. Impoverished management.
        5. Authority-compliance.

*****Use Learning Objective #5 here*****
*****Use PPT 14-9 here: "Contingency Approaches"*****

  1. How Do Leaders and Managers Adjust To Situational Contingencies?
    1. A leader may choose one style more often than others. The leader can change styles as the situation dictates.
    2. Contingency theory variables.
      1. Under what circumstances is a leader effective?
      2. Contingency theory holds that an outcome such as effective group performance is dependent on how the leader interacts with various situational factors.

*****Use PPT 14-10 here: "Exhibit 14-5: Four-Factor Model"

      1. Four ways of looking at style are:
        1. The leader抯 cognitive style. People differ in how they want to be perceived as leaders; some want to be seen as people-centered and some prefer the task-oriented approach and image.
        2. The leader抯 observable behavior. How a leader behaves is something they can抰 disguise. Some leaders spend their time directing tasks; while others try to make people feel acceptable. Some leaders are autocratic; while others are participative.
        3. Work-related situational variables. The effective leader tailors their behavior to the situation.
        4. The behavior of followers. Followers affect the behavior of leaders, especially when group members are from different ethnic, racial, or cultural backgrounds.

*****Use PPT 14-11 and 14-12 here: "Fiedler Contingency Theory of Leadership Effectiveness"****

    1. A leader抯 motives predict style and effectiveness.
      1. According to Fred Fielder, leadership style refers not to the situation at hand, but rather to the underlying motivation of the leader. In other words, style does not change with situation.
      2. Task-motivated style exemplifies the enjoyment of feeling pride in accomplishing a task or having their group do a job well.
      3. Relationship-motivated style is shown in leaders who seek more to realize respect in interpersonal relationships and to experience satisfaction in helping a group to develop as a team.

*****Use PPT 14-13 here: "Situational Variables "*****

      1. Style and circumstance predictors of effectiveness. Three factors are important:
        • Task structure.

*****Use PPT 14-14 here: "Task structure "*****

        • Position power.

*****Use PPT 14-15 here: "Position power "*****

        • Leader-member relations.

*****Use PPT 14-16 here: "Leader-member relations "*****

      1. A contrast between two leaders.
        1. Task-motivated and relationship-motivated leadership styles do not have to use mutually exclusive behaviors.
        • One can be dominant, but doesn抰 have to be restrictive.

*****Use PPT 14-17 here: "Leader Effectiveness "*****
*****Use PPT 14-18 here:
"Hersey & Blanchard抯 Situational Leadership Theory"*****

    1. A leader抯 behavior should be matched to follower抯 needs.
      1. In situational leadership theory (SLT) combinations of task and relationship behaviors are moderated by the job maturity of followers.
      2. Adapting to follower抯 job maturity.
        1. Hersey and Blanchard use one factor to define situation contingencies--the follower抯 maturity, or job readiness, in relation to tasks to be performed.
        2. This can be defined as the capacity to set high but attainable goals, willingness and ability to take responsibility, and education and/or experience of an individual or a group.

*****Use PPT 14-19 here: "Exhibit 14-6: Situational Leadership Model"*****

      1. Applications over a job maturity life cycle.
        1. As a follower抯 maturity changes, the leader抯 behavior toward that person should change also.
        2. For example, close supervision may no longer be necessary as one matures on the job.
      2. Research support SLT within job categories. The most significant conclusion from research on the SLT model is that leaders are unlikely to find a full range of job maturities among employees within a single job category or work group.

*****Use PPT 14-20 here: "Examples of Situational Leadership Applications"*****
*****Use Study and Discussion Question #5 here*****
*****Use PPT 14-21 here: "Path Goal Theory"*****
*****Refer to Exhibit 14-7 here*****

    1. Leaders clarify the path to a goal.
      1. The path-goal leadership theory describes what the leader should do to motivate followers: clarify performance goals, show acceptable paths or means for attaining them, make the path easier to travel, and provide reinforcing consequences for those who achieve satisfactory performance.
      2. Alternatives include:
        1. Instrumental leader behaviors are task-oriented in the sense that the leader sets goals, builds teams, teaches, coaches, sets measurement criteria, provides evaluative feedback, and helps reduce task uncertainty by either being directive or by encouraging followers to become achievement-oriented.
        2. Supportive relationship behaviors involve showing concern, providing encouragement, and giving reinforcement to make the path easier to travel. The focus is on emotional well-being.

****Use PPT 14-22 here: "Leader Styles in Path Goal Theory"*****

        1. Four forms that emerge from the above are:
          1. Directive leadership.
          2. Achievement-oriented leadership.
          3. Participative leadership.
          4. Supportive leadership.

****Use PPT 14-23 here: "Situational Variables in Path Goal Theory"*****

      1. Contingencies for path-goal leadership. The path-goal approach tries to increase motivation to achieve group goals.
        1. Researchers have found the most effective and useful application of the path-goal leadership occurs when the follower抯 task is perceived to be ambiguous, ill-defined, and lacking in routine or standardization.

****Use PPT 14-24 here: "Effective Leadership Style Outcomes in Path Goal Theory"*****

        1. If the leader抯 path-goal behavior is effective, then those who are being influenced are likely to:
          1. Be accepting of the leader.
          2. Expect that personal effort leads to better performance.
          3. Expect that effective performance leads to relevant rewards.
          4. Be satisfied with their work and work situation.
    1. Decision style influences group behavior.
      1. Tannebaum and Schmidt抯 power-sharing model. The lesson from this model is that effectiveness depends on forces in the leader, forces in the followers, and forces in the task situation.

***** Use Dynamics of Diversity here "The Black Leadership Form"*****

      1. The Vroom and Yetton Decision Tree Model. This model presented three basic styles:
        1. Autocratic.
        2. Consultative.
        3. Group.

*****Use Learning Objective #4 here*****
****Use PPT 14-25 here: "Emotional Intelligence and Leadership Styles"*****

      1. Emotional Intelligence and Leadership Styles.
        1. Six Leadership Styles
          1. Coercive
          2. Authoritative
          3. Affinitive
          4. Democratic
          5. Pacesetting
          6. Coaching
        2. Effective Leaders Use Emotional Intelligence to Appropriately Switch Styles

*****Use Study and Discussion Question #6 here*****

  1. How Do Leaders Transform Organizations?

*****Use Learning Objective #6 here*****
****Use PPT 14-26 here: "Transformational Leadership"*****
****Use PPT 14-27 here: "Transformational Leadership Process"*****

    1. Transformational leadership is one who energizes others with visions and strategies of how to refocus and revitalize the larger organization so that change meets people抯 enduring needs.
      1. The concept of the transformational leader is credited to James MacGregor Burns, who emphasizes that leadership involves changing organizations.
      2. Leaders at the head of an organization mobilize influence across the organization so that others follow the path they envision without the necessity for interpersonal interaction.
    2. Pathfinding precedes problem solving and implementing.
      1. According to Harold Leavitt, organizations need three types of managers and leaders, but these three types can have trouble coexisting because of their very different views of the world. The three types are:
        1. The implementing manager/leader uses action to get things done through people and to make things happen.
        2. The problem solving manager/leader engages in planning, organizing, and decisions.
        3. The pathfinding leader is a visionary and dreamer concerned about charting a mission and direction; the pathfinder is an entrepreneur and charismatic leader who lives in a world of values and aesthetics, who puts "faith before evidence."
      2. The pathfinder makes managing and leading a very personal process rather than simply a role. Pathfinding leadership enables quality and continuous improvement to become the driver.

****Use PPT 14-28 here: "Transformational Leadership Strategies"*****

    1. Behavioral strategies for transformational leaders. Leaders utilize at least three behavioral strategies in transforming organizations. They are:
      1. They create a vision.
      2. They mobilize commitment.
      3. They institutionalize change.
    2. Transformation through dedication and continuous improvement.
      1. According to Warren Bennis, many visions today lack impact because they overlook two basic human needs--quality and dedication.
      2. Bennis states that people in high positions are too occupied with managing daily routines, instead of leading change.

*****Use Study and Discussion Question #7 here*****
*****Use Learning Objective #7 here*****
****Use PPT 14-30 here: "Exhibit 14-9: Three Substitutes for Leadership"*****
*****Use Technology Transformation here "Paving the Way to the Future at"*****
*****Refer to Exhibit 14-8 here*****

  1. Is Leadership Always Necessary?
    1. Playing favorites: Leader-member exchange theory.
      1. Leaders seldom treat followers equally.
      2. Leader-member exchange theory holds that interactions between a leader and group members depend on who is in the leader抯 in-group and who is in the out-group.
      3. More critical than the complex issue of what attracts leaders to some members and not to others is the question of the consequences of playing favorites.

*****Use Key Concept leader-member exchange theory here*****

    1. There are substitutes for leadership.
      1. One study found that leadership theories fail to systematically account for much of the change in group performance.
      2. There are substitutes for leadership.
      3. Group members, in many cases, don抰 need leaders for emotional support and guidance; they can turn to each other for these.

*****Use Study and Discussion Question #8 here*****

    1. The dilemma of women and minorities in leadership. Critical barriers were thought to be:
      1. Prejudice, of treating stereotyped differences as weaknesses.
      2. Poor career planning, where minorities are blocked from high-profile, challenging jobs.
      3. A lonely, hostile, unsupportive working environment for nontraditional (minority) managers.
      4. A lack of organizational savvy of knowing "how to play the game" of politics.
      5. Career comfort by executives in dealing with their own kind (the inside group).
      6. Difficulty in balancing family and career, especially for women.

*****Use Study and Discussion Question #7 here; Use Learning Objective #6 here*****