Management: 12 Edition

Place Slide Title Text Here
JOHN R. SCHERMERHORN, JR.

MANAGEMENT
12th Edition
Chapter 14
Essentials of
Leadership
©2013 John Wiley & Sons, Inc. All rights reserved. 14-1
Planning Ahead
Place Slide Title — Chapter
Text Here 14 Study Questions
1. What is the nature of leadership?

2. What are the important leadership traits
and behaviors?
3. What are the contingency approaches to
leadership?
4. What are current issues in personal
leadership development?
Planning Ahead
Chapter
Place Slide Title 14 Learning
Text Here Dashboard
1. The Nature of Leadership

1. Leadership and power
2. Leadership and vision
3. Leadership as service
2. Leadership Traits and Behaviors
1. Leadership traits
2. Leadership behaviors
3. Classic leadership styles
Chapter
Text Here Dashboard
3. Contingency Approaches to Leadership

1. Fiedler’s contingency model
2. Hersey-Blanchard situational model
3. Path-goal theory
4. Leader-participation model
5. Leader-member exchange theory
4. Personal Leadership Development

1. Charismatic and transformational leadership
2. Emotional intelligence and leadership
3. Gender and leadership
4. Moral leadership
5. Drucker’s “old-fashioned” leadership
Takeaway
Place Slide Title1:Text
The Here
Nature of Leadership
Takeaway
The Here
• Leadership
– The process of inspiring others to work hard to
accomplish important tasks
Contemporary leadership challenges:
Shorter time Complex,

frames for High performance ambiguous, and
Scarce resources
accomplishing expectations multidimensional
things problems
Figure 14.1 Leading viewed in relationship to the other
management functions
Takeaway
The Here
• Visionary leadership
– Vision
• A future that one hopes to create or achieve in order to
improve upon the present state of affairs
– Visionary leadership
• A leader who brings to the situation a clear and
compelling sense of the future as well as an
understanding of the actions needed to get there
successfully
Takeaway
The Here
Takeaway
The Here
• Power
– Ability to get someone else to do something you
want done or make things happen the way you
want
– Power should be used to influence and control
others for the common good rather seeking to
exercise control for personal satisfaction
Takeaway
The Here
• Two sources of managerial power:
Position Personal
power power
Takeaway
The Here
Takeaway
The Here
• Position power
– Based on a manager’s official status in the
organization’s hierarchy of authority
Sources of position power:

Reward power Coercive power Legitimate power
• Capability to offer • Capability to punish or • Organizational position
something of value withhold positive or status confers the
outcomes right to control those in
subordinate positions
Takeaway
The Here
• Personal power
– Based on the unique personal qualities that a
person brings to the leadership situation
Sources of personal power:

Expert power Referent power
• Capacity to influence others • Capacity to influence others
because of one’s knowledge and because they admire you and
skills want to identify positively with
you
Takeaway
The Here
Takeaway
The Here
• Servant leadership
– Commitment to serving others, helping others
fully utilize their talents.
– Followers more important than leader
– “Other centered” not “self-centered”
– Power not a “zero-sum” quantity.
– Focuses on empowerment, not power
Takeaway
The Here
• Empowerment
– The process through which managers enable and
help others to gain power and achieve influence
– Effective leaders empower others by providing
them with:
Information Responsibility Authority Trust
Takeaway
The Here
WE SHOULDN‘T CONFUSE INFORMED DESCENT

FROM SUBVERSIVE ACTIONS
- Dwight D. Eisenhower
Planning Ahead

and behaviors?
leadership?
Chapter
Text Here Dashboard
1. The Nature of Leadership

2. Leadership Traits and Behaviors
1. Leadership traits
2. Leadership behaviors
3. Classic leadership styles
Takeaway
Place Slide 2: Leadership
Title Text HereTraits and Behaviors
Planning Ahead

and behaviors?
leadership?
Planning Ahead
Planning Ahead
Takeaway
Drive
Honesty
Self-
and
confidence
integrity
Important
Flexibility
traits for Creativity
leadership
success
Cognitive
Motivation
ability
Business
knowledge
Takeaway
Takeaway
• Leadership behavior
– Leadership behavior theories focus on how
leaders behave when working with followers
– Leadership styles are recurring patterns of
behaviors exhibited by leaders
– Basic dimensions of leadership behaviors:
• Concern for the task to be accomplished
• Concern for the people doing the work
Takeaway
Task concerns People concerns
• Plans and defines work to • Acts warm and supportive

be done toward followers
• Assigns task • Develops social rapport
responsibilities with followers
• Sets clear work standards • Respects the feelings of
• Urges task completion followers
• Monitors performance • Is sensitive to followers’
results needs
• Shows trust in followers
Figure 14.2 Blake and Mouton’s Leadership Grid
Takeaway
• Classic leadership styles:

– Autocratic style
• Emphasizes task over people
– Human relations style
• Emphasizes people over task
– Laissez-faire style
• Shows little concern for task
– Democratic style
• Committed to task and people
Planning Ahead

and behaviors?
leadership?
Chapter
Text Here Dashboard

1. Fiedler’s contingency model
2. Hersey-Blanchard situational model
3. Path-goal theory
4. Leader-participation model
5. Leader-member exchange theory
Takeaway
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Slide Contingency Approaches to Leadership
Text Here
Takeaway
Place 3: Title
Text Here
Fiedler’s Contingency Model (A leader couldn’t
change his behavior)
– Good leadership depends on a match between
leadership and situational demands
– Determining leadership style:
• Low LPC (least-preferred coworker)  task-motivated leaders
• High LPC  relationship-motivated leaders
– Leadership is part of one’s personality, and therefore
relatively enduring and difficult to change
– Leadership style must be fit to the situation
Takeaway
Place 3: Title
Text Here
Fiedler’s Contingency Model
Takeaway
Place 3: Title
Text Here
Fiedler’s contingency model (cont.)

– Diagnosing situational control:
• Quality of leader-member relations (good or poor)
• Degree of task structure (high or low)
• Amount of position power (strong or weak)
– Task oriented leaders are most successful in:
• Very favorable (high control) situations
• Very unfavorable (low control) situations
– Relationship-oriented leaders are most successful in:
• Situations of moderate control
Figure 14.3 Predictions on style-situation fit from Fiedler’s
contingency leadership model
Takeaway
Place 3: Title
Text Here
e.g. You are supervisor of group of bank tellers. The

tellers seem highly supportive of you, and their job is
clearly defined as to what needs to be done. You have
the authority to evaluate their performance and make
pay and promotion recommendations.
Task/Relationship- oriented style ?
Takeaway
Place 3: Title
Text Here
e.g. You are supervisor of group of bank tellers. The

tellers seem highly supportive of you, and their job is
clearly defined as to what needs to be done. You have
the authority to evaluate their performance and make
pay and promotion recommendations.

Good leader-member relations, high-task, high-position
Therefore task-oriented style preferred.
Takeaway
Place 3: Title
Text Here
e.g. You are chairperson of a committee asked to

improve labor-management relations in a
manufacturing plant. Although the goal is clear, no one
can say for sure how to accomplish it. And committee
members are free to quit anytime they want, the
chairperson has little position power, not all members
believe the committee is necessary…
Takeaway
Place 3: Title
Text Here
e.g. You are chairperson of a committee asked to improve labor-management relations
in a manufacturing plant. Although the goal is clear, no one can say for sure how to
accomplish it. And committee members are free to quit anytime they want, the
chairperson has little position power, not all members believe the committee is
necessary…

Task structure is low, little position power, poor leader-
member relations are apparent
Therefore, this low-control situation calls for a task-
motivated leader
Takeaway
Place 3: Title
Text Here
3. You are an experienced supervisor of a group

manufacturing a component for a personal computer.
You are strongly supported by the group members. You
also have the ability to make hiring and termination
decisions and to grant raise.
Takeaway
Place 3: Title
Text Here
3. You are an experienced supervisor of a group manufacturing a component for a
personal computer. You are strongly supported by the group members. You also have
the ability to make hiring and termination decisions and to grant raise.

Analysis: Having supportive subordinates indicates good
leader-member relations. The structure of the work is
high, and you have experience, so the task structure is
high. Finally, you have the authority to hire, fire, and
grant raises, which gives you high position power. This is
a high control situation and hence a task-oriented
leader will be most effective
Takeaway
Place 3: Title
Text Here
Hersey-Blanchard situational leadership

model
– Leaders adjust their styles depending on the
readiness of their followers to perform in a
given situation
• Readiness — how able, willing and confident
followers are in performing tasks
Figure
Place 14.4 Leadership
Slide implications
Title Text Here of the Hersey-Blanchard
situational leadership model
Takeaway
Place 3: Title
Text Here
Hersey-Blanchard leadership styles:

– Delegating
• Low-task, low-relationship style
• Works best in high readiness-situations
– Participating
• Low-task, high-relationship style
• Works best in low- to moderate-readiness
situations
Takeaway
Place 3: Title
Text Here

– Selling
• High-task, high-relationship style
• Work best in moderate- to high-readiness
situations
– Telling
• High-task, low-relationship style
• Work best in low-readiness situations
Takeaway
Place 3: Title
Text Here
High readiness – Delegating: Seniors
– Participating: Juniors
– Selling: Sophomores
Low readiness
– Telling: Freshmen
Takeaway
Place 3: Title
Text Here
House’s path-goal leadership theory

(clarifying the paths to goals by coaching, guidance, support
& rewards.)
– Effective leadership deals with the paths
through which followers can achieve
goals. Add value by contributing things
that are missing or need strengthening.
Figure 14.5 Contingency relationships in House’s path-goal leadership
theory
Takeaway
Place 3: Title
Text Here
House’s leadership styles:
Directive Supportive Achievement- Participative
leadership leadership oriented leadership leadership
• Communicate • Make work • Set challenging • Involve
expectations pleasant goals subordinates in
• Give directions • Treat group • Expect high decision making
• Schedule work members as performance • Consult with
• Maintain equals levels subordinates
performance • Be friendly and • Emphasize • Ask for
standards approachable continuous subordinates’
• Clarify leader’s • Show concern for improvement suggestions
role subordinates’ • Display • Use subordinates’
well-being confidence in suggestions
meeting high
standards
Takeaway
Place 3: Title
Text Here
When to use House’s leadership styles:

– Use directive leadership when job assignments
are ambiguous
– Use supportive leadership when worker self-
confidence is low
– Use achievement-oriented leadership when task
challenge is insufficient
– Use participative leadership when performance
incentives are poor
Takeaway 3: Contingency
Place Slide Approaches to Leadership?
Title Text Here
Substitutes for leadership (There are aspects of the work setting
and the people involved that can reduce the need for a leader’s personal
involvement.)
– Factors in the work setting that direct the work

efforts without the involvement of the leader
• Follower characteristics
– Ability, experience, independence
• Task characteristics
– Routine, feedback
• Organization characteristics
– Clarity of plans, formalized rules and procedures
Takeaway
Place 3: Title
Text Here
Vroom-Jago leader-participation theory

– Helps leaders choose the method of
decision making that best fits the nature of
the problem situation
– Basic decision-making choices:
• Authority decision
• Consultative decision
• Group decision
Takeaway
Place 3: Title
Text Here
Contingency factors in the Vroom-Jago leader-

participation theory:
Decision
Decision quality Decision time
acceptance
• Who has the • Importance of • Time available
information subordinate to make and
needed for acceptance to implement the
problem solving eventual decision
implementation
Figure 14.7 Leadership implications of Vroom-Jago
leader-participation model
Takeaway
Place 3: Title
Text Here
According to Vroom-Jago leader-participation

theory, a leader should use authority-oriented
decision methods when
– The leader has greater expertise to solve a
problem
– The leader is confident and capable of acting
alone
– Others are likely to accept and implement the
decision
– Little or no time is available for discussion
Takeaway
Place 3: Title
Text Here
According to Vroom-Jago leader-participation

theory, a leader should use group-oriented and
participative decision methods when …
– the leader lacks sufficient information to solve a
problem by himself/herself
– the problem is unclear and help is needed to clarify
the situation
– acceptance of the decision and commitment by
others is necessary for implementation
– adequate time is available for true participation
Takeaway
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Text Here
Potential disadvantages
Benefits of participative
of participative decision
decision methods:
methods:
• Help improve decision • Lost efficiency
quality • Not particularly useful
• Help improve decision when problems must
acceptance be solved immediately
• Helps develop
leadership potential
Takeaway
Place 3: Title
Text Here
Decision-making options in the Vroom-Jago

leader-participation theory:
Decide Consult Consult

Facilitate Delegate
alone individually with group
Takeaway
Place 3: Title
Text Here
Leader-Member Exchange Theory (LMX)

– Not all people are treated the same by
leaders in leadership situations
• “In groups”
– High LMX
• “Out groups”
– Low LMX
Takeaway
Place 3: Title
Text Here
Leader-Member Exchange Theory (LMX)
– Nature of the exchange is based on presumed
characteristics by the leader
High LMX relationship:

• favorable personality
• competency
Low LMX relationship:
• compatibility • low competency
• unfavorable personality
• low compatibility
Takeaway
Place 3: Title
Text Here
Figure 14.6 Elements of leader exchange theory
Takeaway
Place 3: Title
Text Here
Planning Ahead

and behaviors?
leadership?
Chapter
Text Here Dashboard

4. Personal Leadership Development
1. Charismatic and transformational leadership
2. Emotional intelligence and leadership
3. Gender and leadership
4. Moral leadership
5. Drucker’s “old-fashioned” leadership
Takeaway
Place Slide4:Title
Personal Leadership Development
Text Here
Takeaway
Place Slide4:Title
Text Here
• Superleaders
– Persons whose vision and strength of
personality have an extraordinary impact on
others
• Charismatic leaders
– Develop special leader-follower relationships
and inspire others in extraordinary ways
(Followers work very hard to support them and remain
loyal and devoted to seek superior performance)
Takeaway
Place Slide4: Personal
Title Leadership Development?
Text Here
Transformational leader
– Someone who is truly inspirational as a
leader and who arouses others to seek
extraordinary performance
accomplishments
Takeaway
Place Slide4:Title
Text Here
Vision
Integrity Charisma
Characteristics of
transformational
leaders:
Intellectual
Aspiration
stimulation
Empowerment
Takeaway
Place Slide4:Title
Text Here
Takeaway
Place Slide4:Title
Text Here
• Emotional intelligence leader
– The ability of people to manage emotions in
social relationships
– Characteristics of the emotionally intelligent
leader:
• High self-awareness
• Motivated and persistent
• High social awareness
• Good self management
• Good relationship management
Takeaway
Place Slide4:Title
Text Here
Gender and leadership

– Gender similarities hypothesis
• Males and females have similar psychological
properties
• Men and women can be equally effective
leaders
• Men and women are sometimes perceived as
using different styles of leadership
Takeaway
Place Slide4:Title
Personal
Text Leadership
Here Development
– Women tend to use interactive leadership (Focus on
the building of consensus through communication and involvement.)
• A style that shares qualities with transformational leadership
• Leaders with this style are democratic, participative, and
inclusive.
– Men tend to use transactional leadership (lead
through tasks, rewards, and structures)
– Interactive leadership provides a good fit with

the demands of a diverse workforce and the new
workplace .(Harvard Kanter said women get high ratings on those skills
required to succeed in the Information Age where teamwork and partnership
are so important)
Takeaway
Place Slide4:Title
Text Here
Drucker’s “old-fashioned” leadership

– Leadership is more than charisma; it is
“good old-fashioned” hard work
Takeaway
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Text Here
– Essentials of “old-fashioned” leadership:

• Defining and establishing a sense of mission
• Accepting leadership as a “responsibility”
rather than a rank
• Surround yourself with talented people
• Don’t blame others when things go wrong
• Keep your integrity, earn trust
• Don’t be clever, be consistent
Takeaway
Place Slide4:Title
Text Here
Moral leadership
– Ethical leadership that is always “good” and
“right”
– All leaders are expected to maintain high ethical
standards
– Long-term, sustainable success requires ethical
behavior
– Integrity involves the leader’s honesty, credibility,
and consistency in putting values into action
Place Chapter 14Text
Slide Title Essentials
Here of Leadership

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Place Slide Title Text Here

JOHN R. SCHERMERHORN, JR.

1. What is the nature of leadership?

1. The Nature of Leadership

3. Contingency Approaches to Leadership

4. Personal Leadership Development

Contemporary leadership challenges:

Shorter time Complex,

• Two sources of managerial power:

Sources of position power:

Sources of personal power:

Information Responsibility Authority Trust

WE SHOULDN‘T CONFUSE INFORMED DESCENT

1. What is the nature of leadership?

1. The Nature of Leadership

1. What is the nature of leadership?

Task concerns People concerns

• Plans and defines work to • Acts warm and supportive

• Classic leadership styles:

1. What is the nature of leadership?

3. Contingency Approaches to Leadership

Fiedler’s contingency model (cont.)

e.g. You are supervisor of group of bank tellers. The

Task/Relationship- oriented style ?

e.g. You are supervisor of group of bank tellers. The

Task/Relationship- oriented style ?

e.g. You are chairperson of a committee asked to

Task/Relationship- oriented style ?

Task/Relationship- oriented style ?

3. You are an experienced supervisor of a group

Task/Relationship- oriented style ?

Hersey-Blanchard situational leadership

Hersey-Blanchard leadership styles:

Hersey-Blanchard leadership styles:

Hersey-Blanchard leadership styles:

High readiness – Delegating: Seniors

House’s path-goal leadership theory

When to use House’s leadership styles:

– Factors in the work setting that direct the work

Vroom-Jago leader-participation theory

Contingency factors in the Vroom-Jago leader-

According to Vroom-Jago leader-participation

According to Vroom-Jago leader-participation

Decision-making options in the Vroom-Jago

Decide Consult Consult

Leader-Member Exchange Theory (LMX)

High LMX relationship:

1. What is the nature of leadership?

3. Contingency Approaches to Leadership

Gender and leadership

– Interactive leadership provides a good fit with

Drucker’s “old-fashioned” leadership

– Essentials of “old-fashioned” leadership:

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