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Leadership:	Learning	Objectives
Ø You should be able to:
§ Summarize the conclusions of trait theories of
leadership.
§ Identify the central tenets and main limitations of
behavioral theories.
§ Assess contingency theories of leadership by their
level of support.
§ Compare and contrast charismatic and
transformational leadership.
§ Discuss the importance of ethics and trust.
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-0
Why	leadership	matters?
12-1
Trait	Theories	of	Leadership
Ø Theories that consider personality, social, physical, or
intellectual traits to differentiate leaders from
nonleaders
Ø Not very useful until matched with the Big Five
Personality Framework
Ø Essential Leadership Traits
– Extroversion
– Conscientiousness
– Openness
– Emotional Intelligence (Qualified)
Ø Traits can predict leadership, but they are better at
predicting leader emergence than effectiveness.
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-2
Behavioral	Theories	of	Leadership
Ø Theories proposing that specific behaviors differentiate
leaders from nonleaders
Ø Differences between theories of leadership:
– Trait theory: leadership is inherent, so we must identify the
leader based on his or her traits
– Behavioral theory: leadership is a skill set and can be taught
to anyone, so we must identify the proper behaviors to teach
potential leaders
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-3
Contingency	Theories
Ø While trait and behavior theories do help us
understand leadership, an important component is
missing: the environment in which the leader exists
Ø Contingency Theory adds this additional aspect to our
understanding leadership effectiveness studies
Ø Defined: http://blnds.co/1ooACSp
Ø Three key theories:
– Fiedler’s Model
– Path-Goal Theory
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-4
Fiedler	Model
Ø Effective group performance depends on the proper
match between leadership style and the degree to which
the situation gives the leader control.
– Assumes that leadership style (based on orientation revealed
in LPC questionnaire) is fixed
Ø Considers Three Situational Factors:
– Leader-member relations: degree of confidence and trust in
the leader
– Task structure: degree of structure in the jobs
– Position power: leader’s ability to hire, fire, and reward
Ø For effective leadership: must change to a leader who fits
the situation or change the situational variables to fit the
current leader
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		
12-5
Graphic	Representation	of	Fiedler’s	Model
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-6
E	X	H	I	B	I	T	12-2
Used to
determine
which type
of leader
to use in a
given
situation
Fiedler’s	Cognitive	Resource	Theory
Ø A refinement of Fiedler’s original model:
– Focuses on stress as the enemy of rationality and creator of
unfavorable conditions
– A leader’s intelligence and experience influence his or her
reaction to that stress
Ø Research is supporting the theory.
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-7
Stress	Level
‱ Low
‱ High
Intellectual	
Abilities
‱ Effective
‱ Ineffective
Leader’s	
Experience
‱ Ineffective
‱ Effective
Situational	Leadership	Theory
Ø A model that focuses on follower “readiness”
– Followers can accept or reject the leader
– Effectiveness depends on the followers’ response to the
leader’s actions
– “Readiness” is the extent to which people have the ability
and willingness to accomplish a specific task
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-8
Ability	to	follow Willingness	to	Follow Leadership	Behavior
Unable Unwilling Give	clear	and	specific	directions
Unable Willing Display	high	task orientation
Able Unwilling Use	a supportive	and	participatory	
style
Able Willing Doesn’t	need	to	do	much
Leader-Member	Exchange	(LMX)	Theory
In Groups
‱ Members are
similar to leader
‱ In the leader’s
inner circle of
communication
‱ Receives more
time and
attention from
leader
‱ Gives greater
responsibility
and rewards
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-9
Out Groups
‱ Managed by formal
rules and policies
‱ Receive less of the
leader’s attention /
fewer exchanges
‱ More likely to
retaliate against the
organization
Ethics	and	Leadership
Ø http://www.themalaysianinsider.com/malaysia/article/s
hahrizats-hubby-charged-with-cbt-in-nfc-scandal
12-10
KUALA	LUMPUR,	March	12	— Datuk	Seri	Mohamed	
Salleh Ismail	was	charged	today	in	the	Sessions	
Court	here	with	criminal	breach	of	trust	and	
violating	the	Companies	Act	in	relation	to	RM49	
million	in	federal	funds	given	to	the	National	
Feedlot	Corporation	(NFCorp).
Transformational	Leaders
Ø Inspire followers to transcend their self-interests for
the good of the organization
Copyright	©	2011	Pearson	Education,	Inc.	publishing	as	Prentice	Hall		 12-11
‱ Contingent	Reward
‱ Management	by	Exception	
(active)
‱ Management	by	Exception	
(passive)
‱ Laissez-Faire
Transactional
‱ Idealized	Influence
‱ Inspirational	Motivation
‱ Intellectual	Stimulation
‱ Individualized	Consideration
Transformational

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Leadership

  • 1. Leadership: Learning Objectives Ø You should be able to: § Summarize the conclusions of trait theories of leadership. § Identify the central tenets and main limitations of behavioral theories. § Assess contingency theories of leadership by their level of support. § Compare and contrast charismatic and transformational leadership. § Discuss the importance of ethics and trust. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-0
  • 3. Trait Theories of Leadership Ø Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders Ø Not very useful until matched with the Big Five Personality Framework Ø Essential Leadership Traits – Extroversion – Conscientiousness – Openness – Emotional Intelligence (Qualified) Ø Traits can predict leadership, but they are better at predicting leader emergence than effectiveness. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-2
  • 4. Behavioral Theories of Leadership Ø Theories proposing that specific behaviors differentiate leaders from nonleaders Ø Differences between theories of leadership: – Trait theory: leadership is inherent, so we must identify the leader based on his or her traits – Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-3
  • 5. Contingency Theories Ø While trait and behavior theories do help us understand leadership, an important component is missing: the environment in which the leader exists Ø Contingency Theory adds this additional aspect to our understanding leadership effectiveness studies Ø Defined: http://blnds.co/1ooACSp Ø Three key theories: – Fiedler’s Model – Path-Goal Theory Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-4
  • 6. Fiedler Model Ø Effective group performance depends on the proper match between leadership style and the degree to which the situation gives the leader control. – Assumes that leadership style (based on orientation revealed in LPC questionnaire) is fixed Ø Considers Three Situational Factors: – Leader-member relations: degree of confidence and trust in the leader – Task structure: degree of structure in the jobs – Position power: leader’s ability to hire, fire, and reward Ø For effective leadership: must change to a leader who fits the situation or change the situational variables to fit the current leader Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-5
  • 8. Fiedler’s Cognitive Resource Theory Ø A refinement of Fiedler’s original model: – Focuses on stress as the enemy of rationality and creator of unfavorable conditions – A leader’s intelligence and experience influence his or her reaction to that stress Ø Research is supporting the theory. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-7 Stress Level ‱ Low ‱ High Intellectual Abilities ‱ Effective ‱ Ineffective Leader’s Experience ‱ Ineffective ‱ Effective
  • 9. Situational Leadership Theory Ø A model that focuses on follower “readiness” – Followers can accept or reject the leader – Effectiveness depends on the followers’ response to the leader’s actions – “Readiness” is the extent to which people have the ability and willingness to accomplish a specific task Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-8 Ability to follow Willingness to Follow Leadership Behavior Unable Unwilling Give clear and specific directions Unable Willing Display high task orientation Able Unwilling Use a supportive and participatory style Able Willing Doesn’t need to do much
  • 10. Leader-Member Exchange (LMX) Theory In Groups ‱ Members are similar to leader ‱ In the leader’s inner circle of communication ‱ Receives more time and attention from leader ‱ Gives greater responsibility and rewards Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-9 Out Groups ‱ Managed by formal rules and policies ‱ Receive less of the leader’s attention / fewer exchanges ‱ More likely to retaliate against the organization
  • 11. Ethics and Leadership Ø http://www.themalaysianinsider.com/malaysia/article/s hahrizats-hubby-charged-with-cbt-in-nfc-scandal 12-10 KUALA LUMPUR, March 12 — Datuk Seri Mohamed Salleh Ismail was charged today in the Sessions Court here with criminal breach of trust and violating the Companies Act in relation to RM49 million in federal funds given to the National Feedlot Corporation (NFCorp).
  • 12. Transformational Leaders Ø Inspire followers to transcend their self-interests for the good of the organization Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-11 ‱ Contingent Reward ‱ Management by Exception (active) ‱ Management by Exception (passive) ‱ Laissez-Faire Transactional ‱ Idealized Influence ‱ Inspirational Motivation ‱ Intellectual Stimulation ‱ Individualized Consideration Transformational