Daft12eIM - 15 - CH 15

Leadership  29
CHAPTER 15
LEADERSHIP
CHAPTER OUTLINE
Task Versus People Orientation

I. The Nature of Leadership
II. Contemporary Leadership
A. Level 5 Leadership
B. Servant Leadership
C. Authentic Leadership
D. Gender Differences
III. From Management to Leadership
IV. Leadership Traits
V. Behavioral Approaches
A. Task versus People
B. The Leadership Grid
VI. Contingency Approaches
A. The Situational Model of Leadership
B. Fiedler’s Contingency Theory
C. Situational Substitutes for Leadership
VII. Charismatic and Transformational Leadership
A. Charismatic Leadership
B. Transformational Versus Transactional Leadership
VIII. Followership
New Manager Self-Test: What is Your Follower Style
IX. Power and Influence
A. Hard Position Power
B. Personal Soft Power
C. Other Sources of Power
D. Interpersonal Influence Tactics
ANNOTATED LEARNING OBJECTIVES

After studying this chapter, students should be able to:
1. Define leadership and explain its importance for organizations.
There is probably no topic more important to business success today than leadership. Leadership
occurs between people, involves the use of influence, and is used to attain goals. Influence
means that the relationship among people is not passive. A definition of leadership is the ability
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except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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to influence people toward the attainment of goals. This definition captures the idea that leaders
are involved with other people in the achievement of goals. Leadership is dynamic and involves
the use of power. Power is the potential ability to influence the behavior of others. Power
represents the resources with which a leader effects changes in employee behavior.
2. Describe how leadership is changing in today’s organizations, including Level 5 leadership,

servant leadership, and authentic leadership.
The turbulence and uncertainty of the environment in which most organizations are operating has
significantly influenced leadership styles in recent years. Ethical and economic difficulties,
corporate governance concerns, globalization, changes in technology, new ways of working,
shifting employee expectations, and significant social transitions have contributed to a shift in
how we think about and practice leadership.
A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled with a fierce
resolve to do what is best for the organization. In contrast to the view of great leaders as larger-
than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and
unpretentious. Although they accept full responsibility for mistakes, poor results, or failures,
Level 5 leaders give credit for successes to other people.
The concept of servant leadership, first described by Robert Greenleaf, is leadership upside
down, because leaders transcend self-interest to serve others and the organization. Servant
leaders operate on two levels: for the fulfillment of their subordinates’ goals and needs and for
the realization of the larger purpose or mission of their organization. Servant leaders give things
away—power, ideas, information, recognition, credit for accomplishments, even money. Servant
leaders truly value other people. They are trustworthy and they trust others. They encourage
participation, share power, enhance others’ self-worth, and unleash people’s creativity, full
commitment, and natural impulse to learn and contribute. Servant leaders can bring their
followers’ higher motives to the work and connect their hearts to the organizational mission and
goals.
Authentic leadership refers to individuals who know and understand themselves, who espouse
and act consistently with higher-order ethical values, and who empower and inspire others with
their openness and authenticity.
 Authentic leaders pursue their purpose with passion. When leaders demonstrate a high level
of passion and commitment to purpose, they inspire commitment from followers.
 Authentic leaders practice solid values. People come to know what the leader stands for,
which inspires trust.
 Authentic leaders lead with their hearts as well as with their heads. They maintain
compassion for others as well as the courage to make difficult decisions.
 Authentic leaders establish connected relationships. They surround themselves with good
people and work to help others grow and develop.
 Authentic leaders demonstrate self-discipline. They avoid excessive or unethical risks that
could harm others and the organization, and openly admit their mistakes.
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Leadership  31
3. Discuss how women’s style of leading is typically different from men’s.
Some of the characteristics associated with Level 5 leaders and authentic leaders are also
hallmarks of interactive leadership, which has been found to be associated with female leaders.
Interactive leadership means that the leader favors a consensual and collaborative process, and
influence derives from relationships rather than position power and formal authority. According
to surveys, women rate higher than men on motivating others, fostering communication,
producing high-quality work, and listening to others, while men and women rate about equally
on strategic planning and analyzing issues.
4. Identify personal characteristics associated with effective leaders.
Traits are the distinguishing personal characteristics of a leader such as intelligence, values, self-
confidence, and appearance. In addition to personality traits, physical, social, and work-related
characteristics have been studied; however, these traits do not stand alone. The appropriateness
of a trait, or set of traits, depends on the leadership situation. The same traits do not apply to
every organization. Studies have shown that optimism is the single characteristic most common
to top executives. However, optimism can also lull leaders to laziness and overconfidence.
Therefore, rather than just understanding their traits, the best leaders recognize and hones their
strengths. Effective leadership isn’t about having the “right” traits, but rather about finding the
strengths that one can best exemplify and apply as a leader.
5. Define task-oriented behavior and people-oriented behavior and explain how these
categories are used to evaluate and adapt leadership style.
Task-oriented behavior and people-oriented behavior are two basic categories of behavior
identified as important for leadership. People-oriented behavior is the extent to which the leader
is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust. Task-
oriented behavior is the extent to which the leader directs subordinate work activities toward goal
attainment. Leaders with this style typically give instructions, spend time planning, emphasize
deadlines, and provide explicit schedules of work activities.
In some cases, employees may need very little direction, but may require more personal
interaction and coordination on the part of a leader to enable them to work effectively together
(e.g., university faculty). These cases would call for a greater focus on people-oriented behavior.
In other cases, employees may need little personal interaction, but may require a great deal of
direction to function effectively (e.g., military personnel in a combat environment). These cases
would call for a strong focus on task-oriented behavior.
6. Describe the situational model of leadership and its application to subordinate participation.
The situational model of leadership, which originated with Hersey and Blanchard, focuses a
great deal of attention on the characteristics of employees in determining appropriate leadership
behavior. Subordinates vary in readiness level. People low in task readiness, because of little
ability or training, or insecurity, need a different leadership style than those who are in high
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readiness and have good ability, skills, confidence, and willingness to work. The leader should
evaluate subordinates and adopt whichever style is needed. If one or more followers are at low
levels of readiness, the leader must be very specific, telling them exactly what to do, how to do
it, and when. For followers high in readiness, the leader provides a general goal and authority to
do the task as they see fit.
7. Discuss how leadership fits the organizational situation and how organizational
characteristics can substitute for leadership behaviors.
The organizational situation or variables can be so powerful that they actually substitute for, or
neutralize, the need for leadership. A substitute for leadership makes the leadership style
unnecessary or redundant. Highly professional subordinates who know how to do their tasks do
not need a leader to initiate structure for them and tell them what to do. A neutralizer counteracts
the leadership style and prevents the leader from displaying certain behaviors. If a leader has no
position power, or is physically removed from subordinates, the leader’s ability to give directions
to subordinates is greatly reduced.
8. Describe transformational leadership and when it should be used.
Managers deal with organizational complexity; leaders initiate productive change.

Transformational leaders are similar to charismatic leaders, but are distinguished by their special
ability to bring about innovation and change. They have the ability to lead changes in the
organization’s mission, structure, and management of human resources. They emerge to take an
organization through major strategic change, such as revitalization.
9. Explain how followership is related to effective leadership.
Many of the qualities that define a good leader are the same qualities as those possessed by a
good follower. Effective followers, like effective leaders, are critical, independent thinkers who
exhibit active behavior in their organizations. They develop equitable relationships with others
and do not try to avoid risk or conflict. They are capable of self-management, discern strengths
and weaknesses in themselves and others, are committed to something bigger than themselves,
and work toward competency, solutions, and positive impact.
10. Identify sources of leader power and the tactics leaders use to influence others.
Power is the potential ability to influence the behavior of others. Power represents the resources
with which a leader effects changes in employee behavior. Within organizations there are
typically five sources of power.
 Legitimate power comes from a formal management position in an organization and the
authority granted to it.
 Reward power stems from the manager’s authority to bestow rewards on others.
 Coercive power, the opposite of reward power, refers to the manager’s authority to punish or
recommend punishment.
 Expert power results from a leader’s special knowledge or skill.
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Leadership  33
 Referent power comes from leader personality characteristics that command subordinates’
identification, respect, and admiration so that they wish to emulate the leader.
Leaders use six primary tactics to influence others.

 Use rational persuasion.
 Help people like you.
 Rely on the rule of reciprocity.
 Develop allies.
 Be assertive—ask for what you want.
 Make use of higher authority.
LECTURE OUTLINE
TASK VERSUS PEOPLE ORIENTATION
The majority of a new manager’s work is accomplished through interpersonal relationships.

Many new managers aspire to a high sociability and high dominance pattern of interpersonal
relationships. Students can diagnose their approach to dealing with others when they are in a
leadership role. A People Orientation score reveals a student’s orientation toward people and
relationships, A Task Orientation score reveals a student’s orientation toward tasks and
outcomes.
I. THE NATURE OF LEADERSHIP
There is probably no topic more important to business success than leadership because it
occurs among people, involves influence, and is used to attain goals. Influence means that
the relationship among people is not passive. Influence is designed to achieve some end or
goal.
Leadership is defined as the ability to influence people toward the attainment of goals.
Leadership is reciprocal, occurring among people. It is dynamic and involves the use of
power to get things done.
Discussion Question #2: In a study asking what people wanted from leaders versus followers,
people ranked maturity number 8 for followers, but number 15 for leaders. What might account
for people wanting a higher maturity level from followers?
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II. CONTEMPORARY LEADERSHIP Exhibit 15.1

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The turbulence and uncertainty of the environment in which most corporations are operating
in today’s world have had a significant influence on leadership thinking and styles. Ethical
and economic difficulties, corporate governance concerns, globalization, changes in
technology, new ways of working, shifting employee expectations, and significant social
transitions have contributed to a shift in how we think about and practice leadership.
A. Level 5 Leadership
1. A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled

with a fierce resolve to do what is best for the organization. In contrast to the view of
great leaders as larger-than-life personalities with strong egos and big ambitions,
Level 5 leaders often seem shy and unpretentious.
2. Humility means being unpretentious and modest rather than arrogant and prideful.
Although they accept full responsibility for mistakes, poor results, or failures, Level 5
leaders give credit for successes to other people.
B. Servant Leadership
1. Servant leaders operate on two levels: for the fulfillment of the subordinates’ goals
and needs and for the realization of the larger purpose or mission of their
organization. Servant leaders give things away—power, ideas, information,
recognition, and credit for accomplishment.
2. Servant leaders bring the follower’s higher motives to the work and connect them to
the organizational mission and goals. Servant leaders often work in the nonprofit
world because it offers a natural way to apply their leadership drive and skills to serve
others.
Discussion Question #7: How does Level 5 leadership differ from the concept of servant
leadership? Do you believe anyone has the potential to become a Level 5 leader? Discuss.
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C. Authentic Leadership Exhibit 15.2
1. Authentic leadership refers to individuals who know and understand themselves,

who espouse and act consistently with higher-order ethical values, and who empower
and inspire others with their openness and authenticity.
2. Exhibit 15.2 outlines the key characteristics of authentic leaders:
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Leadership  35
a. Authentic leaders pursue their purpose with passion. When leaders demonstrate a
high level of passion and commitment to purpose, they inspire commitment from
followers.
b. Authentic leaders practice solid values. People come to know what the leader
stands for, which inspires trust.
c. Authentic leaders lead with their hearts as well as with their heads. They
maintain compassion for others as well as the courage to make difficult decisions.
d. Authentic leaders establish connected relationships. They surround themselves

with good people and work to help others grow and develop.
e. Authentic leaders demonstrate self-discipline. They avoid excessive or unethical

risks that could harm others and the organization, and openly admit their
mistakes.
Discussion Questins #3. If a male manager changes his behaviors to incorporate elements of
interactive leadership more common to female managers, can he still be an “authentic” leader?
Discuss.
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D. Gender Differences Exhibit 15.3
1. Some of the characteristics associated with Level 5 leaders and authentic leaders are
also hallmarks of interactive leadership, which has been found to be associated with
female leaders. Interactive leadership means that the leader favors a consensual and
collaborative process, and influence derives from relationships rather than position
power and formal authority.
2. According to surveys, women rate higher than men on motivating others, fostering
communication, driving results, producing high-quality work, and listening to others,
while men and women rate about equally on strategic planning and analyzing issues.
Discussion Question #4: Studies of women leaders suggest that many of them view power
differently than men do and prefer a collaborative, relationship-oriented use of power. If this is
the case, what does it suggest about women leaders’ abilities to accomplish goals? What does it
suggest about women’s ability to rise to higher organizational levels? Discuss.
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III. FROM MANAGEMENT TO LEADERSHIP Exhibit 15.4
Management and leadership are both important to organizations. Effective managers must
also be leaders because of distinctive qualities associated with each that provide different
strengths for the organization. Management and leadership reflect two different sets of
qualities and skills that frequently overlap within a single individual. A person may have
more of one set of qualities than the other, but ideally a manager develops a balance of both
manager and leader qualities.
A. A primary distinction between management and leadership is that management promotes

stability, order, and problem solving within the existing organizational structures and
systems. Leadership promotes vision, creativity, and change. It means questioning the
status quo so that outdated, unproductive, or socially irresponsible norms can be replaced.
B. Leadership cannot replace management. Good management helps

the organization meet current commitments, while good leadership moves the
organization into the future.
IV. LEADERSHIP TRAITS Exhibit 15.5
Early efforts to understand leadership focused on the leader’s personal characteristics or

traits. Traits are the distinguishing personal characteristics of a leader, such as intelligence,
honesty, self-confidence, and appearance.
A. Generally, research found only a weak relationship between personal

traits and leader success. Physical, social, and work-related characteristics of leaders
have also been studied. The appropriateness of a trait or set of traits depends on the
leadership situation. The same traits do not apply to every organization or situation.
B. Rather than just understanding their traits, the best leaders recognize
and hone their strengths. Strengths are natural talents and abilities that have been
supported and reinforced with learned knowledge and skills and provide each individual
with his or her best tools for accomplishment and satisfaction.
Discussion Question #1: Suggest some personal traits that you believe would be useful to a
business leader today. Are these traits more valuable in some situations than in others? How do
you think traits differ from strengths?
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V. BEHAVIORAL APPROACHES
A. Task versus People

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Leadership  37
1. The inability to define effective leadership based solely on traits led to an interest in
looking at the behavior of leaders and how it might contribute to leader success. Two
basic leadership behaviors that have been identified as important for leadership are
task-oriented behavior and people-oriented behavior.
a. Studies of leader behavior at The Ohio State University identified two major
leadership behaviors called consideration and initiating structure.
 Consideration is the extent to which the leader is sensitive to subordinates,

respects their ideas and feelings, and establishes mutual trust. Considerate
leaders are friendly, provide open communication, develop teamwork, and are
oriented toward their subordinates’ welfare.
 Initiating structure is the extent to which a leader is task oriented and directs
subordinate activities towards goal attainment. Leaders with this style
typically give instructions, spend time planning, emphasize deadlines, and
provide schedules of work activities.
b. Studies at the University of Michigan compared the behavior of effective and

ineffective supervisors.
 Employee- centered leaders were the effective leaders who established high
performance goals and displayed supportive behavior toward subordinates.
 Job-centered leaders were ineffective and less concerned with goal

achievement and human needs in favor of meeting schedules, keeping costs
low, and achieving efficiency.
B. The Leadership Grid Exhibit 15.6
1. Researchers at the University of Texas developed the Leadership Grid®, a

two-dimensional model that measures concern for people and for production. Each
axis on the grid is a nine-point scale, with 1 meaning low concern and 9 meaning high
concern.
a. Team management (9,9) is often considered the most effective style for all
managers; organization members work together to accomplish task outcomes.
b. Country-club management (1,9) occurs when primary emphasis is given to people

rather than to work outputs.
c. Authority-compliance management (9,1) occurs when efficiency in operations is

the dominant orientation.
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d. Middle-of-the-road management (5,5) reflects a moderate concern for both people

and production.
e. Impoverished management (1,1) means the absence of a management philosophy;

managers exert little effort toward interpersonal relationships or work
accomplishment.
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VI. CONTINGENCY APPROACHES
A. The Situational Model of Leadership Exhibit 15.7
1. The situational model of leadership, which originated with Hersey and Blanchard, is
a contingency approach to leadership. That is, it describes the relationship between
leadership styles and specific organizational situations. The situational model links
the leader’s behavioral style with the task of readiness of subordinates.
2. The focus of this model is that subordinates vary in their readiness level, which is
determined by the degree of willingness and ability a subordinate demonstrates while
performing a specific task.
a. Willingness refers to a combination of confidence, commitment, and motivation,

and a follower may be high or low on any of the three variables.
b. Ability refers to the amount of knowledge, experience, and demonstrated skill a

subordinate brings to the task.
People low in readiness need a different leadership style than those with high
readiness. People have low task readiness due to limited skills, lack of training, or
insecurity. People with high readiness tend to have ability, skills, confidence, and
willingness to work.
3. According to the situational model, a leader can adopt one of four leadership styles,
based on relationship (concern for people) and task (concern for production) behavior.
The four styles include:
a. Directing style—a highly dictating style and involves giving explicit directions
about how tasks should be accomplished.
b. Coaching style—a leader explains decisions and gives subordinates a chance to

ask questions and gain clarity and understanding about work tasks.
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Leadership  39
c. Supporting style—a leader shares ideas with subordinates, gives them a chance to
participate, and facilitates decision making.
d. Entrusting style— a leader turns over the responsibility for decisions and their
implementation to subordinates.
4. Followers may be at low, moderate, or high levels of readiness.
a. Low Readiness Level. A directing style is appropriate when followers are at a

low readiness level because of poor ability and skills, little experience, insecurity,
or unwillingness. The leader directs followers what to do, how to do it, and when
to do it.
b. Moderate Readiness Level. A coaching style works best with moderate levels of
readiness when subordinates are unable but willing to follow. In this case,
subordinates might lack some education and experience for the job. The coaching
style gives direction but includes seeking input from others and clarifying tasks.
c. Moderate Readiness Level. A supporting style is effective with moderate levels of

readiness when subordinates are able but lack high willingness to follow. These
subordinates are somewhat insecure about their abilities, and the leader acts as a
resource for advice and assistance to them.
d. High Readiness Level. When followers have high levels of education,

experience, and readiness to accept responsibility for their own task behavior, the
entrusting style is effective. For these followers, the leader provides a general
goal, delegates’ sufficient authority to do the task, and expects followers to
complete the task as they see fit.
B. Fiedler’s Contingency Theory Exhibit 15.8
The cornerstone of Fiedler’s contingency theory is the extent to which the leader’s style
is relationship oriented or task oriented. A relationship-oriented leader is concerned with
people. A task-oriented leader is primarily motivated by task accomplishment.
1. Situation: Favorable or Unfavorable?
a. The suitability of a person’s leadership style is determined by whether the

situation is favorable or unfavorable. Since leadership styles are considered to be
difficult to change, the basic idea is to match the leader’s style with the situation
most favorable for his or her effectiveness. The favorability of a leadership
situation can be analyzed in terms of three elements: the quality of relationships
between leader and followers, the degree of task structure, and the extent to which
the leader has formal authority over followers.
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40  Chapter 15
 Highly favorable when the leader-member relations are positives, tasks are
highly structured, and the leader has formal authority over followers..
 Highly unfavorable when leader-member relations are poor, tasks are highly
unstructured, and the leader has little formal authority.
Discussion Question #5: What skills and abilities does a manager need to lead effectively in a
virtual environment? Do you believe a leader with a consideration style or an initiating-
structure style would be more successful as a virtual leader? Explain your answer.
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2. Matching Leader Style to the Situation
a. Combining the three characteristics yields eight leadership situations.
 The task-oriented leader excels in most favorable situations because everyone

gets along, the task is clear, and the leader has power. The task-oriented
leader also excels in most unfavorable situations because a great deal of
structure and task direction is needed.
 The relationship-oriented leader performs better in the four situations of

intermediate favorability because human relations skills are important in
achieving high group performance.
b. A leader needs to know two things to use Fiedler’s contingency theory.
 A leader needs to know whether he or she has a relationship- or task-oriented

style.
 A leader should diagnose the situation and determine whether leader-member

relations, task structure, and position power are favorable or unfavorable.
C. Situational Substitutes for Leadership Exhibit 15.9
1. The contingency leadership approaches considered so far have focused on the leader’s
style, the subordinates’ nature, and the situation’s characteristics. The final
contingency approach suggests that situational variables can be so powerful that they
substitute for, or neutralize, the need for leadership.
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Leadership  41
a. A substitute is a situational variable that makes a leadership style redundant or

unnecessary. Highly professional subordinates do not need a leader to tell them
what to do.
b. A neutralizer is a situational variable that prevents a leader from displaying

certain behaviors. Situational variables include characteristics of the subordinate,
task, and the organization.
2. Leaders should adopt a style complementary to the organizational situation to ensure

that both task needs and people needs of the work group are met.
Discussion Question #10: Consider the leadership position of a senior partner in a law firm.
What task, subordinate, and organizational factors might serve as substitutes for leadership in
this situation?
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VII. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP
Research has found that some leadership approaches are more effective than others for
bringing about change in organizations. Two types of leadership that can have a substantial
impact are charismatic leadership and transformational leadership. These are best
understood in comparison to transactional leadership.
A. Charismatic Leadership
1. The charismatic leader has the ability to inspire and motivate people to do more than
they would normally do, despite obstacles and personal sacrifice.
2. The impact of charismatic leaders normally come from:

a. stating a lofty vision of an imagined future that employees identify with
b. displaying an ability to understand and emphasize with followers
c. empowering and trusting subordinates to accomplish results.
3. Charismatic leaders are often skilled in the art of visionary leadership. A vision is an
attractive, ideal future that is credible yet not readily attainable. Charismatic leaders
have a strong vision for the future, almost an obsession, and they can motivate others
to help realize it.
B. Transformational versus Transactional Leadership
1. Transformational leaders are distinguished by their special ability to bring about

innovation and change. They recognize followers’ needs and concerns, help them
look at old problems in new ways, and encourage them to question the status quo.
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42  Chapter 15
2. Transformational leaders create significant change in both followers and the

organization. They have the ability to lead changes in the organization’s mission,
structure, and human resource management. They focus on intangibles, such as
vision, shared values, and ideas to build relationships, give larger meaning to
activities, and enlist followers in change.
3. Studies show that transformational leadership has a positive impact on follower

development and follower performance. Transformational leadership skills can be
learned and are not ingrained personality characteristics.
4. Transactional leaders clarify subordinates’ role and task requirements, initiate

structure, provide appropriate rewards, and try to be considerate and meet the social
needs of subordinates. Transactional leaders excel at management functions, are
hardworking, tolerant, and fair-minded. They stress the impersonal aspects of
performance, such as plans, schedules, and budgets.
Discussion Question #6: What is transformational leadership? Give examples of organizational

situations that would call for transformational, transactional, or charismatic leadership.
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VIII. FOLLOWERSHIP Exhibit 15.10
Many of the qualities that define a good leader are the same qualities as those possessed by
a good follower. One model of followership involves five follower styles, categorized
according to two dimensions.
A. The first dimension is the quality of independent, critical thinking versus dependent,
uncritical thinking. Independent critical thinkers are mindful of the effects of their own
and others’ behavior on achieving organizational goals. They can weigh the impact of
their boss’s and their own decisions and offer constructive criticism, creativity, and
innovation. A dependent, uncritical thinker does not consider possibilities beyond what
he or she is told, does not contribute to the cultivation of the organization, and accepts the
supervisor’s ideas without thinking.
B. The second dimension is active versus passive behavior. An active follower participates
fully in the organization, engages in behavior that is beyond the limits of the job,
demonstrates a sense of ownership, and initiates problem solving and decision making. A
passive follower is characterized by a need for constant supervision and prodding by
supervisors.
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Leadership  43
C. The combinations of critical thinker/uncritical thinker and active/passive behavior result

in five types of followers.
1. The alienated follower is a passive but independent, critical thinker. Alienated

employees are often effective followers who have experienced setbacks and obstacles,
perhaps promises broken by their superiors.
2. The conformist participates actively in a relationship with the boss but doesn’t use
critical thinking skills. A conformist typically carries out any and all orders
regardless of the nature of the request.
3. The pragmatic survivor has qualities of all four extremes – depending on which
style fits with the prevalent situation. This type of person uses whatever style best
benefits his or her own position and minimizes risk.
4. The passive follower exhibits neither critical, independent thinking nor active
participation. Being passive and uncritical, these people show neither initiative nor a
sense of responsibility.
5. The effective follower is both a critical, independent thinker and active in the
organization. Effective followers behave the same toward everyone, regardless of
their position in the organization.
NEWMANAGER SELF-TEST: WHAT IS YOUR FOLLOWER STYLE
Effective followers recognize that they have power in their relationships with superiors; thus,
they have the courage to manage upward, to initiate change, and even to put themselves at risk or
in conflict with the boss if they believe that it serves the best interest of the team or organization.
Students can assess their followership style and think about what they might do to be more
effective as a follower.
Discussion Question #8: Why do you think so little attention is given to followership compared to
leadership in organizations? Discuss how the role of an effective follower is similar to the role
of a leader.
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IX. POWER AND INFLUENCE
Power is the potential ability to influence the behavior of others. Influence is the effect of a
person’s actions on the attitudes, values, beliefs, or behavior of others. Power is the capacity
to cause a change in a person, influence may be thought of as the degree of actual change.
Power results from an interaction of leader and followers.
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44  Chapter 15
Sometimes power comes from a person’s position in the organization, while other sources of
power are based on personal characteristics. Within organizations, there are typically five
sources of power: legitimate, reward, coercive, expert, and referent.
A. Hard Position Power
1. The traditional manager’s power comes from the organization. The manager’s
position gives him or her power to reward or punish subordinates to influence
behavior. Examples of position power include:
a. Legitimate power comes from a formal management position in an organization

and the authority granted to it. Subordinates accept this source of power as
legitimate, which is why they comply.
b. Reward power stems from the manager’s authority to bestow rewards on other
people. Legitimate power and reward power are most likely to generate
compliance.
c. Coercive power is the opposite of reward power. Here, the manager has the
authority to punish or recommend punishment, which often generates resistance.
Resistance means workers tend to try to avoid carrying out instructions or will
attempt to disobey them.
B. Personal Soft Power
1. Personal power often comes from internal sources, such as a person’s special
knowledge or personality. Examples of personal power include:
a. Expert power results from a leader’s special knowledge or skill regarding the
tasks performed by followers.
b. Referent power comes from leader personality characteristics that command

subordinates’ identification, respect, and admiration so they wish to emulate the
leader. Subordinate response will be commitment, which means subordinates will
enthusiastically carry out instructions. Leaders can increase their referent power
when they share power and authority with employees. A significant trend is to
empower lower employees.
Discussion Question #7: Do you think leadership is more important or less important in today’s
flatter, team-based organizations? Are some leadership styles better suited to such organizations
as opposed to traditional hierarchical organizations? Explain.
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
,
.
Leadership  45
C. Other Sources of Power
1. Personal effort results in gaining power when people show initiative, work beyond
what is expected of them, take on undesirable but important projects, and show
interest in learning about the organization and industry.
2. People who are enmeshed in a network of relationships have greater power.
3. Information is a primary business resource, and people who have access to

information and control over how and to whom it is distributed are typically
powerful.
D. Interpersonal Influence Tactics Exhibit 15.11
1. Leaders often use a combination of influence strategies, and people who are
perceived as having greater power and influence typically are those who use a wider
variety of tactics.
2. There are seven principles for asserting influence:
a. Use rational persuasion. Use facts, data, and logical argument to persuade others.
b. Make people like you. People would rather say yes to someone they like than to
someone they don’t like.
c. Rely on the rule of reciprocity. Take advantage of the exchange of benefits and
favors.
d. Develop allies. Develop networks of allies—people who can help you

accomplish your goals.
e. Ask for what you want. Make a direct and personal request.
f. Appeal to higher authority. Gain the support of people at higher levels to back
you up.
Answers to End-of-Chapter Discussion Questions
1. Suggest some personal traits that you believe would be useful to a business leader today.
Are these traits more valuable in some situations than in others? How do you think traits
differ from strengths?
,
.
46  Chapter 15
Students may mention good communication, human relations skills, or other traits as being
valuable traits for a leader. Upon reflection, they may realize that these traits may not be
useful with difficult, immature employees who do not wish to cooperate.
Traits are the distinguishing personal characteristics of a leader such as intelligence, values,
self-confidence, and appearance. Generally, research found only a weak relationship
between personal traits and leader success. Strengths are natural talents and abilities that
have been supported and reinforced with learned knowledge and skills and provide each
individual with his or her best tools for accomplishment and satisfaction.
2. In a study asking what people wanted from leaders versus followers, people ranked maturity
number 8 for followers, but number 15 for leaders. What might account for people wanting
a higher maturity level from followers?
We don’t know what other characteristics were included in the study, so it may be that people
didn’t necessarily value maturity less in leaders than in followers; rather, they may simply
have valued more other traits above maturity in leaders than they did in followers. In other
words, they may want leaders and followers to be equally mature, but because they desire
other traits in leaders that they don’t necessarily require from followers, maturity took a
relatively lower position in the study.
It may also be the case that people want followers to be more mature because, in thinking of
themselves as leaders, they want their followers to be cooperative, helpful, other-centered,
thoughtful, and exhibit other characteristics they normally associate with increased maturity.
3. If a male manager changes his behaviors to incorporate elements of interactive leadership

more common to female managers, can he still be an “authentic” leader? Discuss.
Authentic leadership refers to individuals who know and understand themselves, who
espouse and act consistently with higher-order ethical values, and who empower and inspire
others with their openness and authenticity. Interactive leadership means that the leader
favors a consensual and collaborative process, and influence derives from relationships rather
than position power and formal authority. There is nothing inherent in interactive leadership
that conflicts with the characteristics of authentic leadership. As long as the male’s new
behaviors are not inconsistent with his beliefs and he continues to act with openness and
honesty, there is no reason he can’t still be authentic in his leadership.
4. Studies of women leaders suggest that many of them view power differently than men do and
prefer a collaborative, relationship-oriented use of power. If this is the case, what does it
suggest about women leaders’ abilities to accomplish goals? What does it suggest about
women’s ability to rise to higher organizational levels? Discuss.
Some of the hallmarks of interactive leadership are associated with female leaders.
Interactive leadership means that the leader favors a consensual and collaborative process,
and influence derives from relationships. One study found that female managers scored high
on motivating others, fostering communication, and listening. People who are enmeshed in a
,
.
Leadership  47
network of relationships have greater power. A leader or employee with many relationships
knows what’s going on in the organization and industry. As a result of these findings, women
leaders should be able to accomplish goals and rise to higher organizational levels.
5. What skills and abilities does a manager need to lead effectively in a virtual environment?
Do you believe a leader with a consideration style or an initiating-structure style would be
more successful as a virtual leader? Explain your answer.
The point of this question is that no one style is preferable to another. Consideration is the
extent to which the leader respects subordinates’ ideas and feelings, provides open
communication, develops teamwork, and establishes mutual trust. Initiating structure is the
extent to which the leader is task oriented, directs subordinates’ work activities, and plans
and emphasizes deadlines. Both aspects of leadership are necessary. Fiedler’s contingency
theory found that initiating structure was more effective in highly favorable or unfavorable
situations, and consideration was most effective in situations of moderate favorability. The
substitutes for leadership theory indicates that consideration and initiating structure both
must be present, but that the situation may substitute for the leader characteristic. Thus,
when the situation provides a characteristic, the leader need not, and vice versa. Students can
argue that both consideration and initiating structure should be present, or they can argue for
one characteristic or the other and explain why each is appropriate in a specific situation.
The consideration style would probably be more successful in a virtual environment, simply
because in a virtual environment each component of the virtual organization already has its
own structure. The virtual leader’s biggest task is coordinating all of the various
components, which would involve a great deal of open communication, teamwork, and trust.
6. What is transformational leadership? Give examples of organizational situations that would

call for transformational, transactional, or charismatic leadership.
Transformational leadership goes beyond the traditional ideas for influencing people.
Transformational leaders can motivate people beyond what is normally expected. They
motivate people to transcend their own interests for the sake of the organization. They have a
special ability to bring about innovation and change because they have visionary ideas that
excite and stimulate other people to work hard and attain the vision.
An organizational situation that would call for transformational leadership would be when an
organization is trying to change from a hierarchical structure to a team-based structure, or
change from a directive culture to an innovative, risk-taking culture. An organizational
situation that would call for transactional leadership would be when a company is struggling
to simply manage its daily operations and to maintain the status quo. An organizational
situation that would call for charismatic leadership would be a company that is trying to
move from being a local or domestic company to a multinational company. Charismatic
leadership primarily involves the setting forth and vigorous pursuit of an exciting vision for
the future.
,
.
48  Chapter 15
7. How does Level 5 leadership differ from the concept of servant leadership? Do you believe
anyone has the potential to become a Level 5 leader? Discuss.
A Level 5 leader is one that builds an organization with many strong leaders who can step
forward and continue the company’s success. These leaders want everyone in the
organization to develop to their fullest potential. Servant leadership in the new workplace is
the best leaders operate from the assumption that work exists for the development of the
worker as much as the worker exists to do the work. Servant leaders operate on two levels,
for the fulfillment of their subordinates goals and needs and for the realization of the larger
purpose or mission of their organization. Servant leaders give things away—power, ideas,
information, recognition, and credit for accomplishments. They truly value other people,
encourage participation, share power, enhance others self-worth and unleash people’s
creativity, full commitment, and natural impulse to learn. Servant leaders bring the
follower’s higher motives to the work and connect them to the organizational mission and
goals.
Yes, anyone has the potential to become a Level 5 leader because this type of leadership can
be learned and developed from training.
8. Why do you think so little attention is given to followership compared to leadership in

organizations? Discuss how the role of an effective follower is similar to the role of a leader.
Students’ opinions about why little attention is given to followership will vary. One reason
might be simply that leadership is a more “romantic” topic about which to discuss and
research than is followership.
Many of the qualities that define a good leader are the same qualities as those possessed by a
good follower. Effective followers, like effective leaders, are critical, independent thinkers
who exhibit active behavior in their organizations. They develop equitable relationships with
others and do not try to avoid risk or conflict. They are capable of self-management, discern
strengths and weaknesses in themselves and others, are committed to something bigger than
themselves, and work toward competency, solutions, and positive impact.
9. Do you think leadership is more important or less important in today’s flatter, team-based
organizations? Are some leadership styles better suited to such organizations as opposed to
traditional hierarchical organizations? Explain.
Leadership is more important in a flatter organization structure. The rationale is that

leadership requires new styles for different cultures, workforce diversity, and different
employee needs. A leader in that situation must be a coach, be supportive, and be able to
listen and understand employees. He or she must empower, reengineer, and incorporate
flextime, flex schedules and project integrity to gain employee commitment. Although
getting the task done is still critical, leadership styles that are more people oriented are better
suited to team-based organizations because of the increased need for coordination and
empowerment.
,
.
Leadership  49
10. Consider the leadership position of a senior partner in a law firm. What task, subordinate,
and organizational factors might serve as substitutes for leadership in this situation?
Macro variables such as formalization, inflexibility, and physical separation probably would
not be typical of a law firm. Moreover, task characteristics typically are not highly
structured. However, subordinates may get automatic feedback on how they are doing, such
as winning or losing a court case, which is a substitute for task-oriented leadership.
Moreover, law practice is probably intrinsically satisfying, and this is a substitute for
people-oriented leadership. The group characteristics of professionalism and experience
would also substitute for task-oriented leadership and to some extent people-oriented
leadership. The net effect is that the senior partner in a law firm needs to provide only
minimal leadership to subordinates because of the nature of the task and the high
professionalism of subordinates. Free of an active role in directing subordinates or in
meeting their task or people needs, the senior partner could spend a fair amount of time
concentrating on his or her own law clients.
Apply Your Skills: Experiential Exercise
What Is the Impact of Leadership?
The questions in this exercise relate to the “romance” of leadership, which is the romantic view
that leaders are very responsible for organizational performance, while ignoring other factors
such as economic conditions. Company performance is difficult to control and is an outcome of
complex forces. After completing the questions, students should discuss their scores and their
beliefs about leadership with a partner.
Apply Your Skills: Small Group Breakout
Which Leadership Styles Are More Effective?
Students are asked to think about a situation in which a formal or informational leader was
effective at motivating people, and another situation in which a leader was ineffective, perhaps
demotivating people. Then, students answer a series of questions provided in the exercise and
compare answers in groups, looking for patterns that distinguish effective from ineffective
leaders. Students also analyze their situations for “favorability” and “follower readiness”.
Apply Your Skills: Ethical Dilemma
Too Much of a Good Thing?
,
.
50  Chapter 15
1. Tell Carolyn Clark that employee volunteerism is important to the company and that while
her performance evaluation will not be affected by her decision, she should consider helping
Harris because it is an opportunity to help a worthy community project.
Although this is probably good advice for Carolyn Clark, it does not deal with the issue of
whether it was appropriate for Darius Harris to imply to his subordinate that failure to help
with the after-school project could negatively impact her performance appraisal.
2. Tell Darius Harris that the employee volunteer program is just that: a volunteer program.
Even though the company sees volunteerism as an important piece of its campaign to repair
its tarnished image, employees must be free to choose whether to volunteer. He should not
ask for the help of his direct reports with the after-school program.
This is probably the best course of action. As far as we know, Harris has not done anything
like this previously. Still, the situation cannot be ignored; Harris must be told in no uncertain
terms that coercing subordinates, or even appearing to coerce subordinates, is unacceptable.
3. Discipline Darius Harris for coercing his subordinates to spend their own time on his
volunteer work at the community after-school program. This action will send a signal that
coercing employees is a clear violation of leadership authority.
This approach may be a little too harsh. There is no indication that Harris has engaged in this
sort of activity previously, or that anyone else is coercing subordinates in a similar manner.
There is no need to send such a signal.
Apply Your Skills: Case for Critical Analysis
“What’s Wrong With the Team?”
1. How would you characterize Rankin’s leadership style? What approach do you think is
correct for this situation? Why?
Rankin’s leadership style can be characterized as task-oriented. Task-oriented behavior is the

extent to which the leader directs subordinate work activities toward goal attainment. Leaders
with this style typically give instructions, spend time planning, emphasize deadlines, and
provide explicit schedules for work activities.
A relationship- or people-oriented leadership style seems more suitable for the situation. This
would help in developing consideration in the leader, i.e., Rankin, to be mindful of his
subordinates, respect and understand their ideas and feelings, and in establishing mutual
trust. The importance on human relations would also help in achieving high group
performance.
2. What would you do now if you were Rankin? How might you awaken more enthusiasm in
your team for completing this project on time? Suggest specific steps.
,
.
Leadership  51
Two types of leadership that can have a substantial impact to awaken more enthusiasm in the
team for completing this project on time are: charismatic leadership and transformational
leadership. Rankin should probably adopt either charismatic or transformational leadership
style, or the combination of both styles.
The charismatic leader has the ability to inspire and motivate people to do more than what
they would normally do, despite obstacles and personal sacrifice. Following are some of the
ways that Rankin can engage in to be a charismatic leader:
a. Stating a lofty vision of an imagined future that employees identify with
b. Displaying an ability to understand and emphasize with followers
c. Empowering and trusting subordinates to accomplish results
Charismatic leaders are often skilled in the art of visionary leadership. A vision is an
attractive, ideal future that is credible yet not readily attainable. Charismatic leaders have a
strong vision for the future, almost an obsession, and they can motivate others to help realize
it.
Transformational leaders are distinguished by their special ability to bring about innovation
and change. They recognize followers’ needs and concerns, help them look at old problems
in new ways, and encourage them to question the status quo. Transformational leaders create
significant change in both followers and the organization. They have the ability to lead
changes in the organization’s mission, structure, and human resource management. They
focus on intangibles, such as vision, shared values, and ideas to build relationships, give
larger meaning to activities, and enlist followers in change.
Studies show that transformational leadership has a positive impact on follower development
and follower performance. Transformational leadership skills can be learned and are not
ingrained personality characteristics.
3. How would you suggest that Rankin modify his leadership style if he wants to succeed Dyer
in two years? Be specific.
Rankin can succeed Dyer in two years if he modifies his leadership style. Learning
transformational leadership skills seems one of the probable ways he can do so as they are
not ingrained personality characteristics. Studies also show that transformational leadership
has a positive impact on follower development and follower performance.
On the Job Video Case Answers

Camp Bow Wow: Leadership
1. Does Camp Bow Wow CEO Heidi Ganahl possess qualities associated with contemporary
leadership?
Heidi Ganahl possesses many qualities associated with contemporary leadership, including
humility, lack of ego, a focus on organizational growth, and a desire to help others achieve
,
.
52  Chapter 15
success. As a Level 5 leader, Ganahl inspires subordinates through the power of her vision—
especially as it relates to care for animals—not through politics or formal authority. In
addition, she has limitless passion for organizational achievement and collaborates effectively
with other leaders in the company. According to franchisee Sue Ryan, Heidi Ganahl makes
personal connections with subordinates and does not attempt to coerce with position power or
egotism.
2. In what way is Heidi Ganahl’s leadership charismatic and visionary? Give examples.
Heidi Ganahl is driven by her passion for dogs, and she has a clear, well-articulated vision of
what she wants Camp Bow Wow to become in the future. These qualities are inspirational to
the thousands of animal-lovers who work in the Camp Bow Wow franchise system. In
addition, Ganahl is constantly thinking of new ways to leverage the Camp Bow Wow brand.
Since founding the company, she has added a dog training division, a home pet care division,
and a charitable foundation for abandoned pets. Her ultimate goal is to make Camp Bow
Wow a one-stop shop where customers can obtain any pet service they may need. Finally,
Ganahl admits that she does not enjoy managing day-to-day details of business operations
but instead thrives on top-level planning and idea generation. She states that her vision for
the future of the company guides all her personal and business decisions.
3. Where does Heidi Ganahl’s leadership fall on the Leadership Grid discussed in the chapter?
Explain.
Heidi Ganahl is driven to achieve performance results (high concern for production), yet she
is also very personable and willing to delegate authority to subordinates (high concern for
people). As a result, Ganahl fits within the Team Management category (9,9) on the
Leadership Grid.
,
.

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Leadership  29

Task Versus People Orientation

ANNOTATED LEARNING OBJECTIVES

1. Define leadership and explain its importance for organizations.

2. Describe how leadership is changing in today’s organizations, including Level 5 leadership,

3. Discuss how women’s style of leading is typically different from men’s.

4. Identify personal characteristics associated with effective leaders.

8. Describe transformational leadership and when it should be used.

Managers deal with organizational complexity; leaders initiate productive change.

9. Explain how followership is related to effective leadership.

Leaders use six primary tactics to influence others.

TASK VERSUS PEOPLE ORIENTATION

The majority of a new manager’s work is accomplished through interpersonal relationships.

I. THE NATURE OF LEADERSHIP

II. CONTEMPORARY LEADERSHIP Exhibit 15.1

1. A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled

C. Authentic Leadership Exhibit 15.2

1. Authentic leadership refers to individuals who know and understand themselves,

2. Exhibit 15.2 outlines the key characteristics of authentic leaders:

d. Authentic leaders establish connected relationships. They surround themselves

e. Authentic leaders demonstrate self-discipline. They avoid excessive or unethical

D. Gender Differences Exhibit 15.3

III. FROM MANAGEMENT TO LEADERSHIP Exhibit 15.4

A. A primary distinction between management and leadership is that management promotes

B. Leadership cannot replace management. Good management helps

IV. LEADERSHIP TRAITS Exhibit 15.5

Early efforts to understand leadership focused on the leader’s personal characteristics or

A. Generally, research found only a weak relationship between personal

A. Task versus People

 Consideration is the extent to which the leader is sensitive to subordinates,

b. Studies at the University of Michigan compared the behavior of effective and

 Job-centered leaders were ineffective and less concerned with goal

B. The Leadership Grid Exhibit 15.6

1. Researchers at the University of Texas developed the Leadership Grid®, a

b. Country-club management (1,9) occurs when primary emphasis is given to people

c. Authority-compliance management (9,1) occurs when efficiency in operations is

d. Middle-of-the-road management (5,5) reflects a moderate concern for both people

e. Impoverished management (1,1) means the absence of a management philosophy;

VI. CONTINGENCY APPROACHES

A. The Situational Model of Leadership Exhibit 15.7

a. Willingness refers to a combination of confidence, commitment, and motivation,

b. Ability refers to the amount of knowledge, experience, and demonstrated skill a

b. Coaching style—a leader explains decisions and gives subordinates a chance to

4. Followers may be at low, moderate, or high levels of readiness.

a. Low Readiness Level. A directing style is appropriate when followers are at a

c. Moderate Readiness Level. A supporting style is effective with moderate levels of

d. High Readiness Level. When followers have high levels of education,

B. Fiedler’s Contingency Theory Exhibit 15.8

1. Situation: Favorable or Unfavorable?

a. The suitability of a person’s leadership style is determined by whether the

2. Matching Leader Style to the Situation

a. Combining the three characteristics yields eight leadership situations.

 The task-oriented leader excels in most favorable situations because everyone

 The relationship-oriented leader performs better in the four situations of

b. A leader needs to know two things to use Fiedler’s contingency theory.

 A leader needs to know whether he or she has a relationship- or task-oriented

 A leader should diagnose the situation and determine whether leader-member

C. Situational Substitutes for Leadership Exhibit 15.9

a. A substitute is a situational variable that makes a leadership style redundant or

b. A neutralizer is a situational variable that prevents a leader from displaying

2. Leaders should adopt a style complementary to the organizational situation to ensure

VII. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP

2. The impact of charismatic leaders normally come from: