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CHAPTER

12

Basic Approaches
to Leadership
LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Define leadership and contrast leadership and management.
2. Summarize the conclusions of trait theories.
3. Identify the central tenets and main limitations of behavioral theories.
4. Assess contingency theories of leadership by their level of support.
5. Contrast the interactive theories path-goal and leadermember exchange.
6. Identify the situational variables in the leader-participation model. .
7. Show how U.S. managers might need to adjust their leadership approaches in Brazil, France, Egypt, and
China.

Summary and Implications for Managers

Leadership plays a central part in understanding group behavior, for its the leader who usually provides the
direction toward goal attainment. Therefore, a more accurate predictive capability should be valuable in
improving group performance.
The early search for a set of universal leadership traits failed. However, recent efforts using the Big
Five personality framework have generated much more encouraging results. Specifically, the traits of
extraversion, conscientiousness, and openness to experience show strong and consistent relationships to
leadership.
The behavioral approachs major contribution was narrowing leadership into task-oriented (initiating
structure) and people-oriented (consideration) styles. As with the trait approach, results from the behavioral
school were initially dismissed. But recent efforts have confirmed the importance of task- and peopleoriented leadership styles.
A major shift in leadership research came when we recognized the need to develop contingency
theories that included situational factors. At present, the evidence indicates that relevant situational
variables include the task structure of the job; level of situational stress; level of group support; leaders
intelligence and experience; and follower characteristics, such as personality, experience, ability, and
motivation. Although contingency theories havent lived up to their initial promise, the literature has provided
basic support for Fiedlers LPC theory.
Finally, two other theoriesleadermember exchange (LMX) theory and the leader-participation model
also contribute to our understanding of leadership. LMX theory has proved influential for its analysis of
followerswhether they are included in the leaders in-group or were relegated to the out group. Vrooms
leader-participation model focuses on the leaders role as decision maker and considers how leaders make
decisions (such as whether to involve followers in their decision making).
As a group, these traditional theories have enhanced our understanding of effective leadership. As well
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discover in the next chapter, however, more recent theories have shown even more promise in describing
effective leadership.

The chapter opens introducing William Perez, first CEO of Wrigley without the Wrigley
name. Perez was formerly with Nike and S.C. Johnson. Similar to Wrigley, S.C. Johnson
also had generations of family leadership. This unprecedented move at Wrigley is all about
leadership and identifying those individuals who are the right fit with the right stuff. The
chewing gum company is banking on Perez and his ability to lead Wrigley in the future..

Brief Chapter Outline

I.

WHAT IS LEADERSHIP? (PPT 122)

Definitions
o
John Kotter feels that management is about coping with complexity.
o
Robert House of Wharton basically concurs: We define leadership as the ability to
influence a group toward the achievement of goals.
o
Organizations need strong leadership and strong management for optimum
effectiveness. Leaders must challenge the status quo, create visions of the future,
and inspire organizational members.

II.

TRAIT THEORIES (PPTs 12-3 )

Big Five personality traits and leadership

o
Extraversion most important
o
Conscientiousness and openness to experience
o
Agreeableness and emotional stability

Emotional intelligence and leadership

o
Empathy
o
Highest levels of leadership
o
EI and Leadership lack thorough investigation

III.

BEHAVIORAL THEORIES (PPTs 124 to 126)

A.
Introduction

Behavioral approach assumption: suggests that we could train people to be

leaders. We can design programs to implant behavioral patterns. If training worked,
we could have an infinite supply of effective leaders.
B.
Ohio State Studies

The most comprehensive and replicated of the behavioral theories resulted from
research that began at Ohio State University in the late 1940s. These researchers
sought to identify independent dimensions of leader behavior.

They narrowed over a thousand dimensions into two dimensionsinitiating

structure and consideration.
C.
University of Michigan Studies

Leadership studies were undertaken at the same time as those being done at Ohio
State, with similar research objectives. They discovered two dimensions of
leadership behavioremployee-oriented and production-oriented.
D.
The Managerial Grid

Blake and Mouton proposed a managerial grid based on the styles of concern for
people and concern for production, which essentially represent the Ohio State
dimensions of consideration and initiating structure or the Michigan dimensions of
employee-oriented and production-oriented.
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CHAPTER 12

Basic Approaches to Leadership

40

E.

IV.

The grid has nine possible positions along each axis, creating 81 different
positions.
Summary of Trait Theories and Behavioral Theories

The behavioral theories have had modest success in identifying consistent

relationships between leadership behavior and group performance.

However, situational factors that influence success or failure need to be explored

further.

CONTINGENCY THEORIES
A.
Fiedler Model (PPTs 127 to 1211)
1.
Introduction

The first comprehensive contingency model for leadership was developed

by Fred Fiedler who proposed that effective group performance depends
upon the proper match between the leaders style and the degree to which
the situation gives control to the leader.
2.
Identifying Leadership Style

Fiedler believed that a key factor in leadership success is the individuals

basic leadership style. He created the least preferred coworker (LPC)
questionnaire for this purpose.
3.
Defining the Situation

Leader-member relationsThe degree of confidence, trust, and respect

members have in their leader

Task structureThe degree to which the job assignments are procedural

Position powerThe degree of influence a leader has over power

variables such as hiring, firing, discipline, promotions, and salary increases
4.
Matching Leaders and Situations

Fiedler concluded that task-oriented leaders tend to perform better in

situations that were very favorable to them and in situations that were very
unfavorable.
5.
Evaluation

There is considerable evidence to support at least substantial parts of the

model. If predictions from the model use only three categories rather than
the original eight, there is ample evidence to support Fiedlers conclusions.
6.
Cognitive Resource Theory: (PPTs 1211)

The essence of the new theory is that stress is the enemy of rationality. It is
difficult for leaders to think logically and analytically when they are under
stress.

Cognitive resource theory is developing a solid body of research support.

B.
Hersey and Blanchards Situational Theory (PPTs 1212 to 1220)

Paul Hersey and Ken Blanchard developed a leadership model that has gained a
strong following among management development specialists. This model
Situational Leadership Theory (SLT)has been incorporated into leadership
training programs at over 400 of the Fortune 500 companies, and over one million
managers a year from a wide variety of organizations are being taught its basic
elements.

Situational leadership is a contingency theory that focuses on the followers.

o
Successful leadership is achieved by selecting the right leadership style,
which is contingent on the level of the followers readiness. The term
readiness refers to the extent to which people have the ability and
willingness to accomplish a specific task.

Hersey and Blanchard identify four specific leader behaviorsfrom highly directive
to highly laissez-faire. The most effective behavior depends on a followers ability
and motivation.

SLT has an intuitive appeal. Yet, research efforts to test and support the theory
have generally been disappointing.
Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall

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PART THREE
C.

D.

E.

F.

V.

The Group

Path-Goal Theory (PPTs 1214)

1.
The Theory

One of the most respected approaches to leadership is the path-goal

theory developed by Robert House.

It is the leaders job to assist followers in attaining their goals and to

provide the necessary direction and/or support to ensure that their goals
are compatible with the overall objectives of the firm.
2.
Leader Behaviors

House identified four leadership behaviors:

o
The directive leader lets followers know what is expected of them,
etc.
o
The supportive leader is friendly and shows concern for the needs
of followers.
o
The participative leader consults with followers and uses their
suggestions before making a decision.
o
The achievement-oriented leader sets challenging goals and expects
followers to perform at their highest level
Leader-Member Exchange Theory (PPTs 1215 and 1216)

The leader-member exchange (LMX) theory argues that because of time

pressures, leaders establish a special relationship with a small group of their
followers.
How the leader chooses who falls into each category is unclear. .
Contingency Variables and Predictions
1.
Introduction

In contrast to Fiedler, House assumes leaders are flexible and can display
any of these behaviors.

Two classes of situational or contingency variables moderate the

leadership behavior:
o
Environmental or outcome relationship.
o
Personal characteristics of the employee.
2.
Evaluation

Research evidence generally supports the logic underlying the path-goal

theory.
Leader-Participation Model (PPTs 1217)

In 1973, Victor Vroom and Phillip Yetton developed a leader-participation model.

Recognizing that task structures have varying demands for routine and non-routine
activities, these researchers argued that leader behavior must adjust to reflect the
task structure.
o
The model was a decision tree incorporating seven contingencies and five
leadership styles.
o
More recent work by Vroom and Arthur Jago revised this model.

The twelve contingency variables are listed in Exhibit 125.

The model is far too complicated for the typical manager to use on
a regular basis.

Vroom and his associates have provided us with some specific, empiricallysupported contingency variables that you should consider when choosing your
leadership style.

SUMMARY AND IMPLICATIONS FOR MANAGERS

A. Leadership is central to understanding group behavior
Leaders provide direction toward goals
B. Traits Theory
Big Five Personality Framework
C. Behavioral Theory
Task-oriented style
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CHAPTER 12

Basic Approaches to Leadership

42

People-oriented style
D. Contingency Theory
Situational Factors
o Task structure
o Stress
o Support
o Leader intelligence
o Follower Personality

Expanded Chapter Outline

I.

WHAT IS LEADERSHIP?

Definitions
o
John Kotter feels that management is about coping with complexity.

Good management brings about order and consistency by drawing up

formal plans, designing rigid organization structures, and monitoring results
against the plans.

Leadership is about coping with change.

Leaders establish direction by developing a vision of the future; then they

align people by communicating this vision and inspiring them to overcome
hurdles.
o
Robert House of Wharton basically concurs:

Managers use the authority inherent in their designated formal rank to

obtain compliance.

Management consists of implementing vision and strategy, coordinating

and staffing, and handling day-to-day problems.
o
We define leadership as the ability to influence a group toward the achievement of
goals.

The source of this influence may be formal. A person may assume a

leadership role simply because of his/her position.

Not all leaders are managers, nor, for that matter, are all managers
leaders.

Non-sanctioned leadershipthe ability to influence that arises outside the

formal structure of the organizationis often as important as or more
important than formal influence.

Leaders can emerge from within a group as well as by formal appointment

to lead a group.

Organizations need strong leadership and strong management for optimum

effectiveness. Leaders must challenge the status quo, create visions of the
future, and inspire organizational members.

II.

TRAIT THEORIES

The media has long been a believer in trait theories of leadership. They identify leaders by
focusing on personal qualities and characteristics such as charisma, enthusiasm, and
courage.

The search for attributes that describe leaders and differentiate them goes back to the
1930s.

Research efforts at isolating leadership traits resulted in a number of dead ends. A review
of 20 different studies identified nearly 80 leadership traits, but only five of these traits were
common to four or more of the investigations.

The trait approach has at least four limitations:

o
Big Five personality framework provided some breakthroughs. Most of the dozens
of traits that emerged could be subsumed under one of the Big Five traits.
o
Extraversion is the most important trait of effective leadersMore strongly related
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PART THREE

o
o
o
o

III.

The Group
to leader emergence than to leader effectiveness.
Conscientiousness and openness to experience strong, consistent relationships to
leadership
Agreeableness and emotional stability werent as strongly correlated with
leadership.
Recent studies suggest that Emotional Intelligence (EISee Chapter 8), may be
associated with leadership. Empathy is the key. There needs to be more rigorous
investigation in this area.
Traits do a better job at predicting the appearance of leadership than in actually
distinguishing between effective and ineffective leaders.

BEHAVIORAL THEORIES
A.
Introduction

Researchers began to wonder if there was something unique in the way that
effective leaders behave. The behavioral approach would have implications quite
different from those of the trait approach.

Trait and behavioral theories differ in terms of their underlying assumptions.

o
Trait theories assumption: Leadership is basically inborn; therefore we
could select the right leaders.
o
Behavioral approach assumption: suggests that we could train people to be
leaders. We can design programs to implant behavioral patterns. If training
worked, we could have an infinite supply of effective leaders.
B.
Ohio State Studies

The most comprehensive and replicated of the behavioral theories resulted from
research that began at Ohio State University in the late 1940s. These researchers
sought to identify independent dimensions of leader behavior.

They narrowed over a thousand dimensions into two dimensionsinitiating

structure and consideration.

Initiating structure refers to the extent to which a leader is likely to define and
structure his/her role and those of employees in the search for goal attainment.
o
It includes attempts to organize work, work relationships, and goals.
o
The leader high in initiating structure could be described as someone who
assigns group members to particular tasks, expects workers to maintain
definite standards of performance, and emphasizes the meeting of
deadlines.

Consideration is described as the extent to which a person is likely to have job

relationships that are characterized by mutual trust, respect for employees ideas,
and regard for their feelings.
o
The leader shows concern for followers comfort, well-being, status, and
satisfaction.
o
A leader high in consideration could be described as one who helps
employees with personal problems, is friendly and approachable, and
treats all employees as equals.

Leaders high in initiating structure and consideration tended to achieve high

employee performance and satisfaction.
o
The high-high style did not always result in positive consequences.
o
Leader behavior characterized as high on initiating structure led to greater
rates of grievances, absenteeism, and turnover, and lower levels of job
satisfaction for routine tasks.
o
High consideration was negatively related to performance ratings of the
leader by his/her superior.
C.
University of Michigan Studies

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CHAPTER 12

Basic Approaches to Leadership

44

D.

E.

IV.

Leadership studies were undertaken at the same time as those being done at Ohio
State, with similar research objectives. They discovered two dimensions of
leadership behavioremployee-oriented and production-oriented.

Employee-oriented leaders emphasized interpersonal relations. They took a

personal interest in the needs of their employees and accepted individual
differences among members.

The production-oriented leaders tended to emphasize the technical or task aspects

of the jobgroup members were a means to that end.

Michigan researchers conclusions strongly favored the leaders who were

employee oriented. Employee-oriented leaders were associated with higher group
productivity and higher job satisfaction.

Production-oriented leaders tended to be associated with low group productivity

and lower job satisfaction.
The Managerial Grid

Blake and Mouton proposed a managerial grid based on the styles of concern for
people and concern for production, which essentially represent the Ohio State
dimensions of consideration and initiating structure or the Michigan dimensions of
employee-oriented and production-oriented.

The grid has nine possible positions along each axis, creating 81 different
positions.

The grid shows the dominating factors in a leaders thinking in regard to getting
results.

Based on the findings of Blake and Mouton, managers were found to perform best
under a 9,9 style, as contrasted, for example, with a 9,1 (authority type) or 1,9
(liaises-faire type) style. Unfortunately, the grid offers a better framework for
conceptualizing leadership style than for presenting any tangible new information.
Summary of Trait Theories and Behavioral Theories

The behavioral theories have had modest success in identifying consistent

relationships between leadership behavior and group performance.

However, situational factors that influence success or failure need to be explored

further.

CONTINGENCY THEORIES
A.
Fiedler Model
1.
Introduction

The first comprehensive contingency model for leadership was developed

by Fred Fiedler who proposed that effective group performance depends
upon the proper match between the leaders style and the degree to which
the situation gives control to the leader.
2.
Identifying Leadership Style

Fiedler believed that a key factor in leadership success is the individuals

basic leadership style. He created the least preferred coworker (LPC)
questionnaire for this purpose.
o
It purports to measure whether a person is task- or relationshiporiented.
o
The questionnaire contains 16 contrasting adjectives (such as pleasantunpleasant, efficient-inefficient, open-guarded, supportive-hostile).
o
It asks respondents to describe the one person they least enjoyed
working with by rating him or her on a scale of one-to-eight for
each of the 16 sets of contrasting adjectives.
o
Fiedler believes that based on the respondents answers to this
questionnaire, he can determine their basic leadership style.
o
If the least preferred coworker is described in relatively positive
terms (a high LPC score), the respondent is primarily interested in
good personal relations with this coworker.
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3.

4.

5.

If the least preferred coworker is seen in relatively unfavorable terms (a low

LPC score), the respondent is primarily interested in productivity and thus
would be labeled task-oriented.

About 16 percent of respondents cannot be classified as either.

Fiedler assumes that an individuals leadership style is fixed.

Defining the Situation

After assessing leadership style, it is necessary to match the leader with

the situation. Fiedler has identified three contingency dimensions:
o
Leader-member relationsThe degree of confidence, trust, and
respect members have in their leader
o
Task structureThe degree to which the job assignments are
procedural
o
Position powerThe degree of influence a leader has over power
variables such as hiring, firing, discipline, promotions, and salary
increases

The next step is to evaluate the situation in terms of these three

contingency variables.
o
Leader-member relations are either good or poor.
o
Task structure is either high or low.
o
Position power is either strong or weak.

Fiedler states the better the leader-member relations, the more highly
structured the job, and the stronger the position power, the more control
the leader has.

Altogether, by mixing the three contingency variables, there are potentially

eight different situations or categories in which leaders could find
themselves.
Matching Leaders and Situations

The Fiedler model proposes matching them up to achieve maximum

leadership effectiveness.

Fiedler concluded that task-oriented leaders tend to perform better in

situations that were very favorable to them and in situations that were very
unfavorable.
o
Fiedler would predict that when faced with a category I, II, Ill, VII,
or VIII situation, task-oriented leaders perform better.
o
Relationship-oriented leaders, however, perform better in
moderately favorable situationscategories IV through VI.

Fiedler has condensed these eight situations to three. Task-oriented

leaders perform best in situations of high and low control, while
relationship-oriented leaders perform best in moderate control situations.

Given Fiedlers findings, you would seek to match leaders and situations.
Because Fiedler views an individuals leadership style as being fixed, there
are only two ways to improve leader effectiveness.
o
First, you can change the leader to fit the situation.
o
The second alternative would be to change the situation to fit the
leader.
Evaluation

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CHAPTER 12

Basic Approaches to Leadership

46

6.

B.

C.

There is considerable evidence to support at least substantial parts of the

model. If predictions from the model use only three categories rather than
the original eight, there is ample evidence to support Fiedlers conclusions.

There are problems and the practical use of the model that need to be
addressed. The logic underlying the LPC is not well understood and
studies have shown that respondents LPC scores are not stable.

Also, the contingency variables are complex and difficult for practitioners to
assess.
Cognitive resource theory

Fiedler and an associate, Joe Garcia, re-conceptualized the original theory

focusing on the role of stress as a form of situational unfavorableness and
how a leaders intelligence and experience influence his/her reaction to
stress. The re-conceptualization is Cognitive Resource Theory.

The essence of the new theory is that stress is the enemy of rationality. It is
difficult for leaders to think logically and analytically when they are under
stress.

The importance of a leaders intelligence and experience to his/her

effectiveness differs under low- and high-stress situations. Intelligence and
experience interfere with each other. Three conclusions:
o
Directive behavior results in good performance only if linked with
high intelligence in supportive, low-stress situations.
o
In high stress situations, there is a positive relationship between
job experience and performance.
o
The intellectual abilities of leaders correlate with group
performance in situations that the leader perceives as low in
stress.

Cognitive resource theory is developing a solid body of research support.

Hersey and Blanchards Situational Theory

Paul Hersey and Ken Blanchard developed a leadership model that has gained a
strong following among management development specialists. This model
Situational Leadership Theory (SLT)has been incorporated into leadership
training programs at over 400 of the Fortune 500 companies, and over one million
managers a year from a wide variety of organizations are being taught its basic
elements.

Situational leadership is a contingency theory that focuses on the followers.

o
Successful leadership is achieved by selecting the right leadership style,
which is contingent on the level of the followers readiness. The term
readiness refers to the extent to which people have the ability and
willingness to accomplish a specific task.
o
The emphasis on the followers in leadership effectiveness reflects the
reality that it is the followers who accept or reject the leader.

SLT views the leader-follower relationship as analogous to that

between a parent and child.

Just as a parent needs to relinquish control as a child becomes

more mature and responsible, so too should leaders.

Hersey and Blanchard identify four specific leader

behaviorsfrom highly directive to highly laissez-faire. The
most effective behavior depends on a followers ability and
motivation.

SLT has an intuitive appeal. Yet, research efforts to test

and support the theory have generally been disappointing.
Path-Goal Theory
1.
The Theory
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D.

E.

One of the most respected approaches to leadership is the path-goal

theory developed by Robert House.
o
It is a contingency model of leadership that extracts key elements
from the Ohio State leadership research on initiating structure and
consideration and the expectancy theory of motivation.

It is the leaders job to assist followers in attaining their goals and to

provide the necessary direction and/or support to ensure that their goals
are compatible with the overall objectives of the firm.

The term path-goal is derived from the belief that effective leaders clarify
the path to help their followers achieve their work goals.
2.
Leader Behaviors

House identified four leadership behaviors:

o
The directive leader lets followers know what is expected of them,
etc.
o
The supportive leader is friendly and shows concern for the needs
of followers.
o
The participative leader consults with followers and uses their
suggestions before making a decision.
The achievement-oriented leader sets challenging goals and expects followers to
perform at their highest level.
Leader-Member Exchange Theory

The leader-member exchange (LMX) theory argues that because of time

pressures, leaders establish a special relationship with a small group of
their followers.

These individuals make up the in-groupthey are trusted, get a

disproportionate amount of the leaders attention, and are more likely to
receive special privileges.

The theory proposes that early in the history of the interaction between a
leader and a given follower, the leader implicitly categorizes the follower as
an in or an out and that relationship is relatively stable over time.
o
How the leader chooses who falls into each category is unclear.
o
The leader does the choosing on the basis of the followers
characteristics.
o
The theory and research surrounding it provide substantive
evidence that leaders do differentiate among followers.
Contingency Variables and Predictions
1.
Introduction

The directive leader lets followers know what is expected of them, etc.

The supportive leader is friendly and shows concern for the needs of
followers.

The participative leader consults with followers and uses their suggestions
before making a decision.

The achievement-oriented leader sets challenging goals and expects

followers to perform at their highest level.

In contrast to Fiedler, House assumes leaders are flexible and can display
any of these behaviors. (See Exhibit 12-4).

Two classes of situational or contingency variables moderate the

leadership behavior:
o
Environmental or outcome relationship. These factors determine
the type of leader behavior required as a complement if follower
outcomes are to be maximized.
o
Personal characteristics of the employee. These determine how
the environment and leader behavior are interpreted.
Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall

CHAPTER 12

2.

F.

V.

Basic Approaches to Leadership

48

Directive leadership leads to greater satisfaction when

tasks are ambiguous or stressful than when they are highly
structured and well laid out.
Supportive leadership results in high employee
performance and satisfaction when employees are
performing structured tasks.
Directive leadership is likely to be perceived as redundant
among employees with high perceived ability or with
considerable experience.
Employees with an internal locus of control will be more
satisfied with a participative style.

Evaluation

Research evidence generally supports the logic underlying the path-goal

theory.

Leader-Participation Model

In 1973, Victor Vroom and Phillip Yetton developed a leader-participation model.

Recognizing that task structures have varying demands for routine and non-routine
activities, these researchers argued that leader behavior must adjust to reflect the
task structure.

The model was normativeit provided a sequential set of rules that should be
followed in determining the form and amount of participation in decision making, as
determined by different types of situations.

The model was a decision tree incorporating seven contingencies and five
leadership styles.

More recent work by Vroom and Arthur Jago revised this model.
o
Retaining the same five alternative leadership styles but adds a set of
problem types and expands the contingency variables to twelve.

The twelve contingency variables are listed in Exhibit 12-5.

Research testing both the original and revised leader-participation

models has been encouraging.

Criticism has focused on variables that have been omitted and on

the models overall complexity.

Other contingency theories demonstrate that stress, intelligence,

and experience are important situational variables.

The model is far too complicated for the typical manager to use on
a regular basis.

Vroom and his associates have provided us with some specific,

empirically-supported contingency variables that you should
consider when choosing your leadership style.

SUMMARY AND IMPLICATIONS FOR MANAGERS

A. Leadership is central to understanding group behavior
Leaders provide direction toward goals
B. Traits Theory
Big Five Personality Framework
C. Behavioral Theory
Task-oriented style
People-oriented style
D. Contingency Theory
Situational Factors
o Task structure
o Stress
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49

The Group

PART THREE

o
o
o

Support
Leader intelligence
Follower Personality

Text Exercises
Myth or
Science?

Narcissists Make Better Leaders

This statement is false. Narcissismthe tendency to be self-absorbed, to be exploitive of others, and to

have a grandiose self-regardhas sometimes been argued to be a necessary condition for effective
leadership. If you dont admire yourself, the thinking goes, who else will? A recent research effort, however,
suggests that narcissistic self-admiration is toxic to effective leadership.
The authors conducted two studiesone of lifeguards on the East Coast and another of MBA students
in the Southeast. In these studies, the authors first used a standard measure of narcissism, containing
items such as I am more capable than other people, to assess participants level of narcissism. Then they
asked the participants to describe their leadership effectiveness and, independently and confidentially, they
asked the participants peers for their views of the participants leadership effectiveness.
The authors found, for both lifeguards and MBA students, that those who scored high on narcissism
thought they were better-than-average leaders. However, their peers not only disagreed, they rated them as
worse than average. So, narcissists tend to think theyre very good leaders when in the eyes of others, they
are very bad leaders. Its ironic that narcissism may cause people to want to be leaders and to believe they
can be good leaders, when in fact they are the very people who should not be leaders.
This study arouses particular concern because we all may be becoming more narcissistic. Some
researchers who have studied narcissism over time have found that narcissism levels in the population
are rising. Poet Tony Hoagland argues that American culture encourages self-involvement to a degree
that makes it difficult for us to pay attention to anything but ourselves. Whether that statement is true is
debatable, but thoughts of Paris Hilton or presidential candidate John Edwards haircut make one
wonder.

Class Exercise
1.

Give each student several sheets of post it notes or 3 5 cards. Ask each student to write an idea
of how he or she is developing leadership experience, or can develop leadership experience while
still in school. Each student should try to come up with two-to-three ideas.

2.

When the students have finished, collect the cards and begin by reading an idea and then grouping
them on the board under a like categoryask students for help with the categorizations. For
example, service organizations, clubs, church, etc. The categories should become apparent as
ideas are read.

3.

Discussion: Ask how these skills will transfer to being a manager or other positions of responsibility
in the future. How might they explain this experience in a job interview? Do they think this
experience will help them when looking for a professional position in the future? Why? What have
they learned about leadership? What style of leadership do they use? Are some categories more
likely to provide leadership skills than othersand if so, do they plan to spend time developing
skills in those activities? Which leadership theory seems to make the most sense based on their
personal experiences and why? Have they experienced stress when participating in a leadership
activity and how did it affect their experience? And finally, what have they learned about being a
follower?
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CHAPTER 12

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50

IN THE

Bad Bosses Abound

Although much is expected of leaders, whats surprising is how rarely they
seem to meet the most basic definitions of effectiveness. A recent study of
700 workers by Florida State University revealed that many employees believe
their supervisors dont give credit when its due, gossip about them behind
their backs, and dont keep their word. The situation is so bad that for many
employees, the studys lead author says, they dont leave their company,
they leave their boss.
Among the other findings of the study:
39 percent said their supervisor failed to keep promises.
37 percent said their supervisor failed to give credit when due.
31 percent said their supervisor gave them the "silent treatment" in the
past year.
27 percent said their supervisor made negative comments about them to
other employees or managers.
24 percent said their supervisor invaded their privacy.
23 percent said their supervisor blames others to cover up mistakes or
minimize embarrassment.
Why do companies promote such people into leadership positions? One
reason may be the Peter Principle. When people are promoted into one job
(say, as a supervisor or coach) based on how well they did another (say,
salesperson or player), that assumes that the skills of one role are the same as
the other. The only time such people stop being promoted is when they reach
their level of incompetence. Judging from the results of this study, that level of
leadership incompetence is reached all too often.
Source: D. Fost, Survey Finds Many Workers Mistrust Bosses, San
Francisco Chronicle, January 3, 2007, www.SFGate.com
.

Class Exercise
Separate students into teams. Provide the students with materials to build a small structure. Building sets,
blocks, paper cups, and sticks are just a few ideas, but every group must have the same materials. The
task will be to build the tallest free-standing structure with the materials provided in the time permitted. Ten
minutes should be the maximum amount of time allowed. Give a two minute warning as time wraps up.
1.

Select a leader/manager. The manager is responsible for bringing the group to goal, which is to
create a structure. Explain that everyone, except the manager, will get paid (for example, a piece
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2.
3.

4.

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of candy). However, the manager will get twice (two pieces of candy) what the group members do if
they get to goal or nothing if they do not. The winning group (the group with the tallest structure) will
also receive a bonus (for example, two pieces of candy). The winning manager will also receive a
bonus of twice the amount (for example, four pieces of candy).
Once time has elapsed, select a winner and reward the team members and managers who got their
teams to goal. Award the bonuses to the winning team. (If no team can complete the task you must
decide whether or not to allow more time or to repeat the exercise.)
Debrief with the students asking them to describe what happened. Did the managers attitude
change as time drew near? What worked and what did not? What could have helped them to be
more successful in completing the task? What was a barrier? Were they satisfied with the result?
Would they work for this manager again? Ask the manager how it felt to have the pressure on him
or her to perform knowing a bonus was at stake. Did it seem fair to be singled out? What would he
or she do differently if the exercise were repeated?
This exercise is usually fun and creates a lot of noisy activity among the students. However, as time
draws to a close, the managers often get more autocratic in their decision making as they try to
complete the task. Monitor that students are respectful of one another in their remarks.

International
Cultivating an International Perspective: A Necessity for Leaders
Accounting and consulting firm PricewaterhouseCoopers (PwC) is serious about expanding the
world-view of its up-and-coming leaders. So the company started the Ulysses Program, which
sends the companys potential leaders to foreign countries to gain knowledge and experience in
cultural diversity.
For example, PwC sent one group of managers on an 8-week consulting assignment in the
Namibian outback. Their job? To help village leaders deal with the growing AIDS crisis. Without
PowerPoint presentations and e-mail, the managers quickly learned to communicate in a more
traditional wayface-to-face. The managers were forced to rely less on quick technologies and
more on forging connections by cultivating relationships with diverse clients. By experiencing
diversity first-hand at what is perhaps its extreme, PwC hopes that its managers will be betterequipped to handle issues in any culture in which they conduct business. The company says that
the program gives its future leaders a broad, international perspective on business issues and
makes it more likely that they will find creative, unconventional solutions to complex problems. In
addition, participants can realize what they are able to accomplish when they do not have access to
their usual resources. In essence, they are forced to become leaders.
The jury is still out on whether the program is effective at increasing the global leadership
skills of those who participate. Nevertheless, participants of the Ulysses Program tout its benefits,
and other companies have taken noticeJohnson & Johnson and Cisco Systems are just two of
several companies that have adopted similar programs.
Source: Based on J. Hempel, and S. Porges, It Takes a VillageAnd a Consultant, Business Week,
September 6, 2004, p. 76.

Class Exercise
Instructors may wish to engage students in a discussion concerning how leaders are trained to work in
other cultures.

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Counterpoint

Leaders Are Born, Not Made

Point
In the United States, people are socialized to believe they can be whoever they want to beand that
includes being a leader. While that makes for a nice childrens tale (think The Little Engine That CouldI
think I can, I think I can), the worlds affairs and peoples lives are not always wrapped in pretty little
packages, and this is one example. Being an effective leader has more to do with what youre born with
than what you do with what you have.
That leaders are born, not made, isnt a new idea. The Victorian-era historian Thomas Carlyle wrote,
History is nothing but the biography of a few great men. Although today we should modify this to include
women, his point still rings true: Great leaders are what make teams, companies, and even countries great.
Can anyone disagree that people like Abraham Lincoln and Franklin Roosevelt were gifted political leaders?
Or that Joan of Arc and George Patton were brilliant and courageous military leaders? Or that Henry Ford,
Jack Welch, Steve Jobs, and Rupert Murdoch are gifted business leaders? As one reviewer of the literature
put it, Leaders are not like other people. These leaders are great leaders because they have the right stuff
stuff the rest of us dont have, or have in lesser quantities.
If youre not yet convinced, there is new evidence to support this position. A recent study of several
hundred identical twins separated at birth found an amazing correlation in their ascendance into leadership
roles. These twins were raised in totally different environmentssome rich, some poor, some by educated
parents, others by relatively uneducated parents, some in cities, others in small towns. But the researchers
found that despite their different environments, each pair of twins had striking similarities in terms of
whether they became leaders.
Other research has found that shared environmentbeing raised in the same household, for example
has very little influence on leadership emergence. Despite what we might like to believe, the evidence is
clear: A substantial part of leadership is a product of our genes. If we have the right stuff, were destined to
be effective leaders. If we have the wrong stuff, were unlikely to excel in that role. Leadership cannot be for
everyone, and we make a mistake in thinking that everyone is equally capable of being a good leader. 1

Counterpoint
Of course, personal qualities and characteristics matter to leadership, as they do to most other behaviors.
But the real key is what you do with what you have.
First, if great leadership were merely the possession of a few key traitssay intelligence and
personalitywe could simply give people a test and select the most intelligence, extraverted, and
conscientious people to be leaders. But that would be a disaster. It helps to have these traits, but leadership
is much too complex to be reduced to a simple formula of traits. As smart as Steve Jobs is, there are
smarter and more extraverted people out therethousands of them. That isnt the essence of what makes
him, or political or military leaders, great. It is a combination of factorsupbringing, early business
experiences, learning from failure, and driving ambition.
Second, great leaders tell us that the key to their leadership success is not the characteristics they had
at birth but what they learned along the way.
Take Warren Buffett, who is admired not only for his investing prowess but also as a leader and boss.
Being a great leader, according to Buffett, is a matter of acquiring the right habits. The chains of habit are
too light to be noticed until they are too heavy to be broken, he says. Buffett argues that characteristics or
habits such as intelligence, trustworthiness, and integrity are the most important to leadershipand at least
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the latter two can be developed. He says, You need integrity, intelligence and energy to succeed. Integrity
is totally a matter of choiceand it is habit-forming.
Finally, this focus on great men and great women is not very productive. Even if it were true that great
leaders were born, its a very impractical approach to leadership. People need to believe in something, and
one of those things is that they can improve themselves. If we walked around thinking we were just some
accumulation of genetic markers and our entire life was just a vessel to play out gene expression, who
would want to live that way? People like the optimistic story of The Little Engine That Could because we
have a choice to think positively (we can become good leaders) or negatively (leaders are predetermined),
and its better to be positive.

Class Exercise
1.

Rent a video tape of one of the following movies:

Lawrence of Arabia

Hoosiers

12 OClock High

9 to 5

The Memphis Belle

Saving Private Ryan

2.

Preview the video and note points where the leadership abilities of the individual are demonstrated.

Lawrence of ArabiaAbout 30 minutes into the film, Lawrence convinces the Arabs to
cross the desert. Start with his discussion of the idea, and go all the way up to the attack on
the coastal city.

HoosiersShow the clip where the coach explains his coaching style to the team, and then
go to the end of the movie, when, in the last minute of play during the championship game,
the team leader asserts himself.

12 Oclock HighUse the clip where General Savage takes over command from chewing
out the clerk through his meeting with each member of his new staff. It ends when he asks
his adjutant for advice and is rejected.

9 to 5Show the clip where Violet leads the other women into the scheme of tying up the
boss in his own home. Then show the closing scenes of the film, when she is leading the
owner of the company through the firm showing him all the changes that have been made.

The Memphis BelleBegin with the plane in flight on its last mission. For the sake of time,
stop when the plane finally drops its bombs. This film is especially useful to generate
discussion about others beside the formal leader demonstrating leadership.

Saving Private RyanBegin with the patrol searching for Ryan and coming upon the
German machine gun nest. Stop after they decide to let the German go. This is an excellent
clip for showing leadership with followers also having power (guns) and of followers leading
the leader (the soldier who intervenes in the killing of the captive).

3.
4.
5.

Ask students to note leadership dimensions, elements, or behaviors as they watch the selected clip.
Record on the board those elements the students noted.
Lead a discussion as to whether those are traits, behaviors, etc., and whether or not someone
could be trained to duplicate them.
Does this lead them to agree more with the POINT or COUNTERPOINT position?

6.

Questions for Review

1. Are leadership and management different from one another? If so, how?
Answer: Both leadership and management are essential for organizational success. They are
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often used synonymously, but they are not the same.

- Leadership is the ability to influence a group toward the achievement of goals
- Management is the use of authority inherent in designated formal rank to obtain compliance
from organizational members
2. What is the premise of trait theories? What traits are associated with leadership?
Answer: Proponents of trait theories believe that a leader is born. They often describe leaders in
terms of their personal characteristics, such as charismatic and driven. Behaviorists believe
leadership can be taught, or nurtured, by providing the necessary skills to an individual to be an
effective leader.
There are no universal traits that predict in all situations. Traits predict behavior more in weak
situations than in strong situations. The evidence is unclear in separating cause from effect.
Finally, traits do a better job at predicting the appearance of leadership than in actually
distinguishing between effective and ineffective leaders. These limitations have led researchers to
look in other directions.
3. What are the central tenets and main limitations of behavioral theories?
Answer: Behavioral theories propose that specific behaviors differentiate leaders from nonleaders. Behavioral theory believes that leadership is a skill set and can be taught to anyone, so the
proper behaviors must be identified to teach potential leaders. Leaders who display consideration
and structuring behaviors do appear to be more effective, although there is no guarantee.
Combined with trait theories and situational factors that may influence success or failure, future
research may combine some of these factors to define leadership.
4. What is Fiedlers contingency model? Has it been supported in research?
Answer: After assessing leadership style, it is necessary to match the leader with the situation.
Fiedler identified three contingency variables to match the leader with the situation:

Leader-member relationsThe degree of confidence, trust, and respect members have in

their leader

Task structureThe degree to which the job assignments are procedural

Position powerThe degree of influence a leader has over power variables such as hiring,
firing, discipline, promotions, and salary increases
Considerable evidence does support the model especially when the original eight situations are
grouped into three but the logic behind the LPC scale is not well understood.
5. What are the main tenets of path-goal theory? What about leadermember exchange theory?
Answer: The contingency variables in path-goal theory are extracted from the key elements of
initiating structure and consideration from the Ohio State studies and the expectancy theory of
motivation. It says that the leaders job is to help followers in attaining their goals and to provide the
necessary direction and support to ensure their goals are compatible with the overall objectives of
the organization.

Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful
than when they are highly structured and well laid out.
Supportive leadership results in high employee performance and satisfaction when
employees are performing structured tasks.
The participative leader consults with followers and uses their suggestions before making a
decision. Employees with an internal locus of control will be more satisfied with a
participative style.
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Achievement-oriented leadership will increase employees expectancies that effort will lead to high
performance when tasks are ambiguously structured
The leader-member exchange (LMX) theory argues that because of time pressures, leaders
establish a special relationship with a small group of their followers. These individuals make up the
in-groupthey are trusted, get a disproportionate amount of the leaders attention, and are more
likely to receive special privileges. The theory proposes that early in the history of the interaction
between a leader and a given follower, the leader implicitly categorizes the follower as an in or an
out and that relationship is relatively stable over time. How the leader chooses who falls into each
category is unclear. The leader does the choosing on the basis of the followers characteristics.
Research to test LMX theory has been generally supportive. The theory and research surrounding it
provide substantive evidence that leaders do differentiate among followers and that these
disparities are far from random.
6. What are the predictions of the leader-participation model?
Answer: Yroom and Yettons model says that how a leader makes decisions is as important as
what is decided.
Premise:
Leader behaviors must adjust to reflect task structure
Normative model: tells leaders how participative to be in their decision-making of a
decision tree
Five leadership styles
Twelve contingency variables
Research testing for both the original and modified models has not been encouraging, since the
model is overly complex
7. How specifically might an American leader need to adapt to the Brazilian, French, Egyptian, and
Chinese cultures?
Answer: Leaders need to take culture into account. Based on GLOBE study findings Americans
need to be aware of the following information to be effective in these countries:
Brazilian teams prefer leaders who are high in consideration, participative, and have high
LPC scores
French workers want a leader who is high on initiating structure and task-oriented
Egyptian employees value team-oriented, participative leadership, while keeping a highpower distance
Chinese workers may favor a moderately participative style
Questions
1.

What is more important in judging a leader-his or her actions or the outcomes? Which should be
more important?
Answer: Leaders should be evaluated on the means by which they achieve the ends. That is, the
various styles, techniques, tactics, and strategies employed need to be considered when rendering
an evaluation of effective leadership. Means and outcomes are important but the means need to be
ethical.

2.

How much of leadership success is due to luck or other factors beyond a leaders control?
Answer: There is some luck involved in terms of timing or other factors but effective leaders often
appear lucky when they make leadership look easy. Good decisions made at the right time may
appear fortunate but it is more likely well planned. A leader influences his/her followers but the
leader does not have control over everything.
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56

Are employees, shareholders, and society too quick to excuse leaders who use questionable
means if they are successful in achieving their goals?
Answer: Students should debate whether or not society, employees, stakeholders, etc. place more
emphasis on the ends rather than the means. You may wish to use contemporary examples from
the political realm and from business experiences to generate discussion.

4.

Is it impossible for leaders to be ethical and successful?

Answer: The most effective and respected leaders are those who are both ethical and successful.
There are many historical and contemporary examples that support this. Have students list any
number of leaders (e.g. Martin Luther King, Jack Welch, Bill Gates, Andrea Jung, Abraham
Lincoln, etc).

Source: Based on C. E. Johnson, Meeting the Ethical Challenges in Leadership (Thousand Oaks, CA:
Sage, 2001), pp. 45.

Case Incident 1
MOVING FROM COLLEAGUE TO SUPERVISOR
Cheryl Kahn, Rob Carstons, and Linda McGee have something in common. They all were promoted within
their organizations into management positions. And each found the transition a challenge.
Cheryl Kahn was promoted to director of catering for the Glazier Group of restaurants in New York
City. With the promotion, she realized that things would never be the same again. No longer would she be
able to participate in water-cooler gossip or shrug off an employees chronic lateness. She says she found
her new role to be daunting. At first I was like a bulldozer knocking everyone over, and that was not well
received. I was saying, Its my way or the highway. And was forgetting that my friends were also in
transition. She admits that this style alienated just about everyone with whom she worked.
Rob Carstons, a technical manager at IBM in California, talks about the uncertainty he felt after
being promoted to a manager from a junior programmer. It was a little bit challenging to be suddenly giving
directives to peers, when just the day before you were one of them. You try to be careful not to offend
anyone. Its strange walking into a room and the whole conversation changes. People dont want to be as
open with you when you become the boss.
Linda McGee is now president of Medex Insurance Services in Baltimore, Maryland. She started as
a customer service representative with the company, then leapfrogged over colleagues in a series of
promotions. Her fast rise created problems. Colleagues would say, Oh, here comes the big cheese now.
God only knows what they talked about behind my back.
Questions
1. A lot of new managers err in selecting the right leadership style when they move into management. Why
do you think this happens?
Answer: This happens for several reasons. Typically, managers adopt a style that is most
comfortable to them; one that is consistent with their personality. They fail to assess the
environment and/or the maturity (skill level) of their employees. Also, research has shown that
some managers may adopt the style of their most recent (or respected) manager. This may or may
not be a good fit for the organization and/or situation that the new manager is in.
2. What does this say about leadership and leadership training?
Answer: The case illustrates that leadership can be developed (learned) and that training can
improve leadership effectiveness.
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3. Which leadership theories, if any, could help new leaders deal with this transition?
Answer: Students should discuss the various leadership theories (situational, leader-member
exchange, etc).
4. Do you think its easier or harder to be promoted internally into a formal leadership position than to come into
it as an outsider? Explain.
Answer: Students will provide varied answers. However, it is typically more difficult to be promoted
from within (supervising former peers); while coming in from the outside does pose challenges as
well (i.e., different culture, expectations, etc.).
Source: Based on D. Koeppel, A Tough Transition: Friend to Supervisor, The New York Times, March 16, 2003, p.
BU12.

Case Incident 2
THE KINDER, GENTLER LEADER?
The stereotypical view of a CEOtough-minded, dominant, and hyper-aggressivemay be giving way to a
more sensitive image. Nowhere is this shifting standard more apparent than at General Electric. There may
be no CEO more revered for his leadership style than former CEO Jack Welch, a tough guy in his own
words. Yet, his handpicked successor, Jeff Immelt, is remarkable for his very different leadership style.
Whereas Welch was intense, brash, and directive, Immelt was described by Financial Times as
unshakably polite, self-deprecating and relaxed.
Of course, Immelt is only one leader, and his success at GE is hardly assured. But hes far from alone
in the set of seemingly sensitive CEOs. Colgate-Palmolive CEO Reuben Mark says of his leadership credo:
I have made it my business to be sure that nothing important or creative at Colgate-Palmolive is perceived
as my idea. The president of Toyota of America, Jim Press, embraces servant leadership and says one of
his main functions is to get out of the way and support those who work with him.
A recent study of CEOs seems to suggest that this trend is spreading. The CEOs in its sample scored,
on average, 12 points below average on tough-mindedness. Yes, thats below average. As one observer of
the corporate world concludes, The Jack Welch approach appears to be on the wane.
You might think a kinder, gentler approach works only for Fortune 500 CEOs, whose very job security
might rely on glowing press coverage. In the United States, though, you dont get much further from Wall
Street than the Hanford, Washington, nuclear cleanup site, and theres evidence that the nice approach to
leadership is taking hold there, too. Jerry Long, VP of operations for CH2MHILLs cleanup of the Hanford
site, argues that a central part of his job is showing them you care.
Consider the meteoric rise of Barack Obamaall the way from state senator to serious presidential
contender in just 3 years. While a student at Harvard Law School, Obama was famous attorney Laurence
Tribes research assistant. Tribe said of Obama, Ive known senators, presidents. Ive never known anyone
with what seems to me more raw political talent. He just seems to have the surest way of calmly reaching
across what are impenetrable barriers to many people. Although some have argued that Obamas
campaign represents an emphasis of style over substance, it may be that after years of acrimonious
political wars, people consider the how as important as the what. Regardless of whether Obama makes it to
the White House, it seems clear that part of his incredible rise reflects peoples desire for a kinder, gentler
leader.
Questions
1. Do you think the kinder, gentler leader image is just a fad?
Answer: No, it is not a fad. More recent generations want to be treated differently in the workplace
and with the skills shortages and job changes, companies will need to adjust. The movement away
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from coercion and control techniques and the application of a servant leadership style is more prevalent
today.
2. Do you think the kinder, gentler leadership approach works better in some situations than others? It is
possible that Welch and Immelt are both effective leaders?
Answer: Yes, it may work better in some situations than others. The basic tenet should be Theory Y as
it pertains to people. Both Welch and Immelt are both effective leaders. There is no one style that is
effective and Welch has even softened his approach over the years.
3. Do you think the leadership style of people like Immelt and Obama is a result of nature, nurture, or
both? What factors can you think of to support your answer?
Answer: It may be nature, nurture or just evidence of the respective personality. Intelligent leaders will
adapt the style necessary to succeed in the respective scenario. Rudy Giuliani showed a softer
empathetic style in his leadership after 9/11.
Sources: Based on J. Hollon, Leading Well Is Simple, Workforce Management, November 6, 2006, p. 50;
A. Pomeroy, CEOs Show Sensitive Side, HRMagazine, August 2006, p. 14; P. Bacon, Jr., Barack
Obama, Time, April 18, 2005, p. 6061, J. Marquez

Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall

ENDNOTES

R. D. Arvey, Z. Zhang, and B. J. Avolio, Developmental and Genetic Determinants of Leadership Role
Occupancy among Women, Journal of Applied Psychology, May 2007, pp. 693706.