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Griffin 9e IM Ch 11_edited
Griffin 9e IM Ch 11_edited
CHAPTER SUMMARY
This chapter explores the nature of leadership and influence processes in organizations. After
describing the nature of leadership, the chapter discusses leadership traits and behaviors and then
focuses on situational approaches to leadership. Related perspectives on leadership are then discussed,
followed by a discussion of emerging approaches to leadership. The chapter concludes with a
discussion of political behavior in organizations.
LEARNING OUTCOMES
After studying this chapter, students should be able to:
1. Describe the nature of leadership and relate leadership to management.
2. Discuss and evaluate the two generic approaches to leadership.
3. Identify and describe the major situational approaches to leadership.
4. Identify and describe three related approaches to leadership.
5. Describe three emerging approaches to leadership.
6. Discuss political behavior in organizations and how it can be managed.
MANAGEMENT IN ACTION
Leaders of Oil Repute
The opening case focuses on leadership in the energy industry, highlighting BP in particular. Research
shows that executives in the energy industry have a high ratio of making sustainability a top priority.
However, the question is raised as to whether these companies are pushing sustainability for the right
reasons. Is the energy industry concerned for their future, thus their interest in sustainability? Or are
they “greenwashing” themselves as a sustainable corporation to prop up their reputations?
Management Update: To date, BP’s cost for the cleanup, environmental and economic damages,
and penalties has reached $54 billion.
Discussion Starter: Ask students their opinion on BP. Do they feel this is a company interested in
sustainability because it is the right thing to do, or because BP wants to protect its reputation? Ask
students if they can come up with some other companies that appear to be greenwashing.
LECTURE OUTLINE
I. The Nature of Leadership
A. The Meaning of Leadership
1. Leadership is both a process and a property.
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Chapter 11: Leadership and Influence Processes 177
Group Exercise: Have small groups of students brainstorm a list of names that they think of when they
hear the word “leadership.” Have a representative from each group write its list on the board. Note
similarities and differences among the different lists.
B. Leadership and Management
1. Leadership and management are related but different. For example, the management
side of executing plans focuses on monitoring results, comparing them with goals, and
correcting deviations. In contrast, the leadership side of the same activity focuses on
energizing people to overcome bureaucratic hurdles to help reach goals.
Teaching Tip: Walk through Table 11.1 with your students and highlight for them the various
distinctions that can be drawn between management and leadership.
2. Organizations need both effective management and strong leaders if they are to be
successful.
C. Leadership and Power
Power is the ability to affect the behavior of others. In organizations, there are usually five
kinds of power.
1. Legitimate Power
Legitimate power is granted through the organizational hierarchy—it is the power
defined by the organization to be accorded to people occupying a particular position.
Legitimate power is essentially the same as authority.
2. Reward Power
Reward power is the power to give or withhold rewards, such as salary increases,
bonuses, promotions, praise, recognition, and interesting job assignments.
3. Coercive Power
Coercive power is the power to force compliance by means of psychological,
emotional, or physical threat. Coercion includes verbal and written reprimands,
disciplinary layoffs, fines, demotion, and termination.
Interesting Quote: “I’ve yelled at people and I’m not ashamed of it. We have to run this company
efficiently and without a bunch of babies who say ‘Mommy yelled at me today.’ It’s impossible to run a
leveraged operation like camp. If you don’t like it, leave. It’s not a prison.” Linda Wachner, former
CEO of Warnaco, Fortune, October 18, 1993, 41.)
4. Referent Power
Referent power is based on identification, imitation, loyalty, or charisma. Followers
may react favorably because they identify in some with a leader, who may be like them
in personality, background, or attitudes.
5. Expert Power
Expert power is derived from information or expertise.
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Discussion Starter: Ask students to critique each use of power in terms of its probable effectiveness
and acceptability.
Discussion Starter: Have students recall examples of when they have used or seen someone use these
various bases of power.
II. Generic Approaches to Leadership
Generic, or universal, approaches assumed that there was one set of answers to the leadership
puzzle.
A. Leadership Traits
1. The trait approach assumed that some basic trait or set of traits existed that
differentiated leaders from nonleaders. If those traits could be defined, experts argued,
potential leaders could be identified based on the extent to which they did or did not
have those traits.
2. Researchers thought that leadership traits might include intelligence, assertiveness,
above-average height, good vocabulary, attractiveness, and self-confidence.
Extra Example: Other traits that have been suggested as determinants of leader effectiveness include
astrological sign, birth order, body shape, and handwriting style.
3. During the first half of the twentieth century, hundreds of studies were conducted in an
attempt to identify important leadership traits; however, the results of the studies were
disappointing. For every set of leaders who possessed a common trait, a long list of
exceptions was also found, and the list of suggested traits grew so long that it had little
practical value.
Teaching Tip: Point out to students the assumptions about leadership traits that sometimes play a role
in political races. For example, in the 1992 presidential race, some questioned H. Ross Perot’s political
skills because of his short stature, whereas others criticized Bill Clinton because he tended to have a
weight problem. Still, Clinton defeated incumbent George Bush, due in part to what some people called
Bush’s “wimp factor.” Perhaps “wimpiness” is also a trait!
B. Leadership Behaviors
Motivated by their lack of success in identifying useful leadership traits, researchers began
to investigate the behaviors or actions of leaders. The new hypothesis was that effective
leaders somehow behaved differently than less effective leaders.
1. Michigan Studies
a. Researchers at the University of Michigan, led by Rensis Likert, identified two
common forms of leader behavior.
(1) Managers using job-centered leader behavior pay close attention to
subordinates’ work, explain work procedures, and are keenly interested in
performance.
(2) Managers using employee-centered leader behavior are interested in
developing a cohesive work group and ensuring that employees are satisfied
with their jobs.
b. The two styles of leader behavior were presumed to be at the ends of a single
continuum.
c. Likert argued that employee-centered leader behavior generally tends to be more
effective.
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Extra Example: The Ohio State studies involved one of the earliest known attempts to train managers
to be more effective leaders.
3. Managerial Grid
a. The Managerial Grid provides a means for evaluating leadership styles and then
training managers to move toward an ideal style of behavior. It is based on two
forms of leader behavior.
(1) A concern for production deals with the job and task aspects of leader
behavior.
(2) A concern for people deals with the human aspects of leader behavior.
b. According to the Managerial Grid, there are five extremes of managerial
behavior.
(1) The 1,1 manager (impoverished management) exhibits minimal concern for
both production and people.
(2) The 9,1 manager (authority-compliance) is highly concerned about
production but exhibits little concern for people.
(3) The 1,9 manager (country club management) is highly concerned about
people but exhibits little concern for production.
(4) The 5,5 manager (middle-of-the-road management) maintains adequate
concern for both people and production.
(5) The 9,9 manager (team management) exhibits maximum concern for both
people and production.
c. According to this approach, the ideal style of managerial behavior is 9,9.
Extra Example: The Managerial Grid is also used as an organization development technique.
Organizations can buy the program and use it to enhance various behavioral processes and dynamics.
Extra Example: The reason that little scientific evidence exists regarding the effectiveness of the
Managerial Grid is that users must sign a contract specifying that they will not allow outsiders to
evaluate it.
4. The leader-behavior theories have played an important role in the development of
contemporary thinking about leadership.
a. They urge us not to be preoccupied with who leaders are (the trait approach) but
to concentrate on what leaders do (their behaviors).
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Teaching Tip: Have students write hypothetical scenarios representing various levels of each aspect of
favorableness.
4. Favorableness and Leader Style
When the situation is the most favorable (good leader–member relations, high task
structure, and strong position power) or the least favorable (bad leader–member
relations, low task structure, and weak position power), the best leadership style is
task-oriented. Relationship-oriented leaders are most effective when the situation is
only moderately favorable.
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Discussion Starter: If Fiedler’s theory is valid, what are the implications that might be drawn
regarding leadership training programs?
B. Path-Goal Theory
The path-goal theory of leadership suggests that the primary functions of a leader are to
make valued or desired rewards available in the workplace and to clarify for the subordinate
the kinds of behavior that will lead to goal accomplishment and valued rewards.
Teaching Tip: Point out for students the logic underlying this theory’s somewhat awkward name: the
theory asserts that the leader’s primary function is to clarify for subordinates the path to their goals.
That is, the leader can enhance subordinate performance by determining what subordinates want (their
goals) and then making those goals clearly linked to performance (i.e., the path).
1. Leader Behavior
a. The most fully developed version of path-goal theory identifies four kinds of
leader behavior.
(1) Directive leader behavior lets subordinates now what is expected of them,
gives guidance and direction, and schedules work.
(2) Supportive leader behavior is being friendly and approachable, showing
concern for subordinate welfare, and treating members as equal.
(3) Participative leader behavior includes consulting with subordinates,
soliciting suggestions, and allowing participation in decision making.
(4) Achievement-oriented leader behavior means setting challenging goals,
expecting subordinates to perform at high levels, encouraging subordinates,
and showing confidence in subordinates’ abilities.
b. In contrast to Fiedler’s theory, path-goal theory assumes that leaders can change
their style or behavior to meet the demands of a particular situation.
Discussion Starter: Note that in contrast to the LPC theory, path-goal theory suggests that leaders can
alter their behavior. Poll your students to determine whether they agree.
2. Situational Factors
Situational factors that must also be assessed include the personal characteristics of
subordinates and the environmental characteristics of the workplace.
a. Important personal characteristics include the subordinates’ perception of their
own abilities and their locus of control.
b. Environmental characteristics include factors outside the subordinates’ control,
such as task structure, the formal authority system, and the nature of the work
group.
Cross-Reference: The path-goal theory of leadership is a direct extension of the expectancy theory of
motivation discussed in Chapter 10. Recall that expectancy theory suggests that motivation is a function
of how much we want something and how likely we think we are to get it. The path-goal theory says
that a leader should clarify the likelihood of getting desired outcomes or goals.
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182 Chapter 11: Leadership and Influence Processes
Teaching Tip: Vroom’s decision tree approach is very complex and may be difficult for students to
grasp. Walk through several examples based on different scenarios, using the trees in Figures 11.4 and
11.5 as a reference.
Global Connection: Japanese managers are very interested in learning how to use the Vroom decision
tree approach.
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Chapter 11: Leadership and Influence Processes 183
Interesting Quote: One early practitioner of situational leadership was President Lyndon Johnson. This
quote, published in The Atlantic Monthly, January 1976, p. 78, is his description of how he handled
different reporters: “You learn that Mary McGrory likes dominant personalities and Doris Fleeson cares
only about issues, so that when you’re with McGrory you come on strong and with Fleeson you make
yourself sound like some impractical red-hot liberal.”
IV. Related Approaches to Leadership
A. Substitutes for Leadership
Substitutes for leadership specify in what situations leader behaviors are neutralized or
replaced by characteristics of the subordinate, the task, and the organization.
1. Characteristics of the subordinate that may serve to neutralize leader behavior include
ability, experience, need for independence, professional orientation, and indifference
toward organizational rewards.
2. Task characteristics that may substitute for leadership include routineness, the
availability of feedback, and intrinsic satisfaction.
3. Organizational characteristics that may substitute for leadership include formalization,
group cohesion, inflexibility, and a rigid reward structure.
Discussion Starter: Ask students to identify leadership substitutes that might work in a classroom
setting (e.g., structured assignments, group projects, etc.).
B. Charismatic Leadership
1. Charismatic leadership assumes that charisma is an individual characteristic of the
leader. Charisma is a form of interpersonal attraction that inspires support and
acceptance.
2. There are three elements of charismatic leadership in organizations that most experts
acknowledge today.
a. Charismatic leaders must envision the future, set high expectations, and model
behaviors consistent with meeting those expectations.
b. Charismatic leaders must be able to energize others through a demonstration of
personal excitement, personal confidence, and patterns of success.
c. Charismatic leaders enable others by supporting them, empathizing with them,
and expressing confidence in them.
Discussion Starter: Ask students to identify popular charismatic leaders today.
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END-OF-CHAPTER
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186 Chapter 11: Leadership and Influence Processes
effectiveness, which may be helpful to some managers. However, other theories identify the same
types of behavior and approach the issues in a way that is more theoretically sound.
3. What are the situational approaches to leadership? Briefly describe each and compare and contrast
their findings.
Situational models assume that appropriate leader behavior varies from situation to another. Four
of the most important and widely accepted situational theories of leadership are the least-preferred
coworker (LPC) theory, the path-goal theory, Vroom’s decision tree approach, and the leader–
member exchange (LMX) approach.
The LPC theory, developed by Fred Fiedler, identified two styles of leadership: task oriented and
relationship oriented. Leadership style is assessed by the LPC measure. A high total score is
assumed to reflect a relationship orientation on the part of the leader, and a low score a task
orientation on the leader’s part. According to Fiedler, appropriate leader behavior varies as a
function of the favorableness of the situation. Favorableness is determined by leader–member
relations (the nature of the relationship between the leader and the work group), task structure (the
degree to which the group’s task is well defined), and position power (the power vested in the
leader’s position). According to the LPC theory, the most and least favorable situations call for
task-oriented leadership, whereas moderately favorable situations suggest the need for
relationship-oriented leadership. Fiedler argued that, for any given individual, leader style is
essentially fixed and cannot easily be changed. Thus, when a leader’s style and the situation do
not match, Fiedler argued that the situation should be changed to fit the leader’s style.
The path-goal theory of leadership suggests that the primary functions of a leader are to make
valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of
behavior that will lead to goal accomplishment and valued rewards—that is, the leader should
clarify the paths to goal attainment. Path-goal theory identified four kinds of leader behavior:
(1) directive, (2) supportive, (3) participative, and (4) achievement-oriented. In contrast to
Fiedler’s theory, path-goal theory assumes that leaders can change their style or behavior to meet
the demands of a particular situation. Like other situational theories of leadership, path-goal
theory suggests that the appropriate leader style depends on situational factors. Path-goal theory
focuses on the situational factors of the personal characteristics of subordinates and environmental
characteristics of the workplace.
Vroom’s decision tree approach concerns itself with only a single aspect of leader behavior:
subordinate participation in decision making. Vroom’s decision tree approach assumes that the
degree to which subordinates should be encouraged to participate in decision making depends on
the characteristics of the situation. In other words, no one decision-making process is best for all
situations. Managers should use one of two decision trees. One decision tree is to be used when
the manager is interested primarily in making the decision as quickly as possible; the other is to be
used when time is less critical and the manager is interested in helping subordinates to improve
and develop their own decision-making skills. Vroom’s decision tree approach identifies five
leadership styles: (1) decide, (2) consult (individually), (3) consult (group), (4) facilitate, and
(5) delegate.
The LMX model suggests that leaders form unique independent relationships with each of their
subordinates. A small number of trusted subordinates are referred to as the in-group. The in-group
usually receives special duties requiring responsibility and autonomy. Subordinates who are not a
part of this group are called the out-group, and they receive less of the superior’s time and
attention.
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The President has legitimate power through his job description. He may have referent power to
the extent that members of the military look up to and admire him, and he may have expert power,
if he has served in the military. An airline pilot has legitimate power through the employer, and he
or she could conceivably have coercive power, but it is unlikely he or she would use it (“Do what
I want or I’ll crash this plane.”). He or she has referent power if passengers look up to him or her,
and a pilot would have expert power on an airline flight. A movie star primarily has referent
power as a role model or a charismatic leader and may have expert power, if he or she is seen as
an expert in some aspect of filmmaking. Teachers have legitimate power through their schools;
they have reward and coercive power through their awarding of attention, praise, grades, and
reprimands; they have referent power if students admire them; and they have expert power
because of their subject knowledge.
Clearly, the type of power a leader has depends heavily on the leadership situation. For example, a
manager may not have coercive power, because he or she may not have the capability of
punishing coworkers, but he or she probably has coercive power as a parent, because he or she can
administer spankings or other disciplinary actions.
4. Think about a decision that would affect you as a student. Use Vroom’s decision tree approach to
decide whether the administrator making that decision should involve students in the decision.
Which parts of the model seem most important in making that decision? Why?
Students’ responses will vary, but an example might be as follows. Course schedules: (1) quality
requirement—low; it really doesn’t matter when the courses are scheduled; (2) commitment
requirement—low; it really doesn’t matter if students are enthusiastically committed to particular
course schedules. (3) The Vroom decision tree approach then suggests that departments should
make course schedules without any real involvement of students.
5. Describe a time when you or someone you know was part of an in-group or an out-group. What
was the relationship between each of the groups and the leader? What was the relationship
between the members of the two different groups? What was the outcome of the situation for the
leader? For the members of the two groups? For the organization?
Clearly, answers will vary. Students should recognize that in-groups have closer relationships
with leaders than do out-groups. The relationship between members of in-groups and out-groups
is typically strained, with misunderstandings and resentments on both sides. Leaders may benefit
from the dynamics of in-group/out-group interactions, if the in-group members are in fact the
most trusted and highest performing workers. If not, the outcome may be too much conflict.
Members of the in-group are likely to experience better outcomes than members of the out-group.
Organizations may benefit from the high performance of in-group members, but can suffer
negative consequences from the unhealthy competition and stress.
Experiential Exercise
The Leadership/Management Interview Experiment
a. Purpose
This exercise is designed to allow students to develop a conceptual framework for leadership
and management.
b. Format
The student prepares the interview questions. The instructor critiques and approves the
questionnaire prior to the actual interview. Once the interview questions are approved,
students will interview a practicing manager and a practicing leader using the questions they
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Chapter 11: Leadership and Influence Processes 189
crafted. Students will then give an oral report to the class by using the information gathered
from the interview and by answering the questions in the text.
c. Follow-Up
Leadership and management are in some ways the same, but more often they are different.
Since most management behaviors and leadership behaviors are a product of individual
work experience, each leader/manager tends to have a unique leadership/management style.
An analysis of leadership/management styles and a comparison of such styles with different
organizational experiences are often rewarding experiences in learning.
The exact learning outcomes from this experiment are not predictable, but any one or more
of the following may occur:
1. The student is better able to prepare a leadership/management-oriented questionnaire.
2. The student is better able to conduct an interview as the interviewer.
3. The student better understands that leaders/managers are unique individuals.
4. The student becomes aware that some leaders/managers still believe in the managerial
myths regarding motivation, perception, and communications.
5. The student gains self-confidence as he or she observes that the leader/manager is
somewhat intimidated by certain questions, and resorts to defensive mechanisms.
6. The student gains confidence in his or her education as the leader/manager is seen as
actually applying organizational behavior theory.
Pre-Experiment Briefing
The following topics are usually covered in the briefing:
1. Questions asked of the leader/manager should relate to what the student has studied in this class.
2. Questions should be in common language rather than in textbook language. For example:
(incorrect) Do your employees suffer from cognitive dissonance? (correct) When your employees
are disappointed because they don’t get a pay raise they expected, how do you deal with their
disappointment?
3. The student should request an appointment in advance, ask for no more than an hour of the
leader/manager’s time, and be there promptly.
4. Some students use this interview experiment to get exposure to a company where they would like
to work.
5. Needless to say, students should be told to be courteous during the interview and not play games
in an effort to upstage the leader/manager.
Problems
Most students who select this experiment do so because they have confidence in their ability to conduct
the interviews without experiencing problems. Occasionally, a student has difficulty preparing suitable
questions and requires considerable help from the instructor. Sometimes, the interview will be
nonproductive because of the unsuitability of the leader/manager selected. These problems are not
frequent and often not serious. As a rule, the experiment is a productive learning experience.
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Chapter 11: Leadership and Influence Processes 191
seem to be most important. In each of these instances, however, the level of organization,
type of technology, environmental conditions, and objectives sought help determine the
exact mix of behaviors that will lead to effectiveness. The student should analyze his or her
particular situation to determine which subset of these behavior categories is most likely to
be important, and then strive to develop that subset.
1. As the owner of a basketball team, Steve Ballmer cannot play favorites as basketball depends on
teamwork. As outlined in the leader-member exchange model, each vertical superior-subordinate
dyad is likely unique. Describe the likely situation if Ballmer initiated in-groups and out-groups
within the basketball team.
It is not clear how a leader selects members of the in-group, whether based on personality or
competence, but in-group members tend to have a higher level of performance and satisfaction.
The in-group may receive special duties, privileges, responsibilities, and autonomy. They may be
privy to information unknown to the out-group and they may receive more rewards and support
from the leader. The out-group will receive less of the leader’s time and attention and assigned
mundane tasks. They are not “in the loop,” receiving fewer rewards and support from the leader.
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192 Chapter 11: Leadership and Influence Processes
This is likely to result in inner-team conflict and high levels of dissatisfaction from the out-group
members. The situation could lead to poor team performance and players leaving the team.
2. In the path-goal theory, the leader clarifies the path to the goal and offers a reward for achieving
that goal. If followers believe they can achieve the goal and receive the reward, they will do it.
Followers must believe extra effort will improve their performance and the extra effort is worth the
reward. The path-goal theory identifies four kinds of leader behavior: directive, supportive,
participative, and achievement-oriented. Which kind of leader behaviors do you feel Steve Ballmer
exhibits to his basketball team?
Ballmer appears to exhibit the achievement-oriented behavior. Coaches, not the owner, provide
directive behaviors – setting expectations, and scheduling work. Team training is likely boring and
repetitive, and Ballmer may exhibit supportive behavior during these times. Ballmer may use a
form of participative leadership behaviors as he is working with players of higher skills. Ballmer
likely exhibits the achievement-oriented leader behaviors with the most frequency. He would set
challenging goals – such as winning the championship – and shows confidence in players’ abilities.
This is effective when subordinates have high abilities and motivated by meeting goals, such as
professional basketball players.
3. When looking at leadership through the eyes of followers, does Ballmer exhibit transformational
leadership characteristics, charismatic leadership characteristics, or transactional leadership?
MANAGEMENT AT WORK
A Critique of Practical Leadership
The closing case describes ING Direct Canada, launched in 1997 by veteran Canadian banker Arkadi
Kuhlmann. The new direct banking business model featured no-frills, high-rate savings accounts, only
accessible online. The bank broke even in just four years, and in 2000, Kuhlmann launched ING Direct
USA. Kuhlmann’s vision was to lead Americans back to saving, and his mission was to simplify
financial products. Kuhlmann believes a leader must be the driving force behind the company’s culture.
Management Update: ING Direct was bought by Capital One in 2012 and changed the company name
to Capital One 360.
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Chapter 11: Leadership and Influence Processes 193
Case Questions
1. First, review the definition and discussion of “The Organization’s Culture” in Chapter 2. Then
address the following question: What effect is a company’s culture likely to have on the efforts of
management to practice each of the following approaches to leadership: LPC theory, path-goal
theory, the decision tree approach, and the LMX model?
The LPC theory suggests that management change the situation if it does not align with the
manager’s leadership style. In order to change the situation, managers could change the task (new
procedures or guidelines) or change the power structure (gaining authority or delegating
authority). If not communicated properly, a strong culture and organizational politics could
undermine these changes. There may not be any problems if the culture is weak and disorganized
with little office politics. The path-goal theory would seem easier to incorporate into the culture.
This may meet resistance if workers perceive themselves as unable to perform or have an external
locus of control. The decision tree approach has proven effective but complex. If the
organizational culture is not accepting of adopting this approach, it could be easily undermined. In
the case study, ING Direct may be accepting of this theory. They have a strong culture and with
training could effectively implement the decision tree approach. Culture and organizational
politics could play a role in acceptance of the LMX theory. If implemented into a strong, cohesive
culture, this could be quite disruptive.
2. “The way we look at leaders,” says Arkadi Kuhlmann, “has changed, and who we follow has
become ever more situational.” According to one researcher, situational leadership
evolved from a task-oriented versus people-oriented continuum. … representing the
extent that the leader focuses on the required tasks or focuses on relations with
followers. … Task-oriented leaders define roles for followers, give definite instructions,
create organizational patterns, and establish formal communication channels. In
contrast, relation-oriented leaders practice concern for others, attempt to reduce
emotional conflicts, seek harmonious relations, and regulate equal participation.
First, use this definition of situational leadership to get a sharper focus on the discussion of the
topic in the text (“Situational Approaches to Leadership”). Then explain how Kuhlmann’s concept
of “culture-driven leadership” can be understood within the context of situational approaches to
leadership.
Situational models assume that appropriate leader behavior varies from one situation to another.
The goal of situational theory is to identify key situational factors and to specify how they interact
to determine appropriate leader behavior. Kuhlmann’s “culture-driven leadership” ties the
company’s mission, vision, and culture together. The leader must state the mission and embody
the company’s cause. The leader must be the driving force behind the company’s culture.
Kuhlmann believes you direct the culture and let the culture direct the business. Kuhlmann’s
approach is to take a broader view of leadership than situational models. He believes with the
right culture and the right vision, everyone will have the same focus.
3. The same researcher writes that the transformational leader
convinces his followers to transcend their self-interest for the sake of the organization,
while elevating “the followers’ level of need on Maslow’s hierarchy from lower-level
concerns for safety and security to higher-level needs for achievement and self-
actualization.”… Over time, four components of transformational leadership emerged:
idealized influence, inspirational motivation, intellectual stimulation, and
individualized consideration.
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194 Chapter 11: Leadership and Influence Processes
First, review the section in the text on “Transformational Leadership” and, if necessary, the
discussion in Chapter 10 of “Maslow’s Hierarchy of Needs.” Then explain how Kuhlmann’s
concept of “culture-driven leadership” can be understood within the context of the
transformational approach to leadership.
Kuhlmann’s “culture-driven leadership” could be seen as transformational leadership. Kuhlmann
went beyond ordinary expectations by transmitting a strong sense of mission in his search for
simplified banking options, stimulated learning experiences by leading the online banking
industry, and inspired new ways of thinking by doing away with brick-and-mortar bank branches.
4. What about you? In 2011, Kuhlmann published a book entitled Rock Then Roll: The Secrets of
Culture-Driven Leadership, which gathers some ideas on management collected over more than a
decade at ING Direct. “The book,” he says, “is really for a younger audience—people who are
really looking around and trying to figure out how to make a difference.” He adds that
a lot of younger people who join us, starting at the entry level at ING Direct, are not
totally motivated by money. It’s amazing what percentage say, “Wait a minute, I’m
committing time. I’m investing my time, and that means a lot to me.” They have a little
different focus. If you roll back the calendar a couple of decades, it was all about,
“How much money am I going to make?” There are still some people like that, but it’s
amazing how many people really think about the fact that they’re investing time.
Kuhlmann implies a spectrum of attitudes toward work life running from “How much money am I
going to make?” on the one end to “I’m investing time and that means a lot to me” on the other
end. Where would you put yourself on this spectrum? Have you pretty much been at the same
place for your adult life, or has your attitude shifted to some degree? In any case, explain how you
currently feel about the issue that Kuhlmann raises.
Responses to the questions will vary based on how students perceive their attitudes toward work
life.
© 2019 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 11: Leadership and Influence Processes 195
Good leaders incorporate sustainability and corporate practices through tracking company results,
by providing an atmosphere of continuous learning, by having passion and a vision and sharing
this with their employees, and by promoting an atmosphere that encourages innovation and a
willingness to learn and share ideas. Therefore, sustainability is an essential top-management
agenda item.
3. A former CEO of a major American corporation has the following to say about BP and the
Deepwater Horizon disaster:
In the aftershock, the world watched BP and its chief executive, Tony Hayward, make
blunder after blunder while crude continued to gush. … BP’s talk about caring for the
environment was for naught, as its actions failed to match its message. … Recently, a
BP-sponsored Gulf Coast tourism TV campaign has implied that everything is back to
normal. No doubt, substantial reparative progress has been made. But does the latest
ad make you feel any better about the offender?
Let’s assume that you’ve been asked to sit on a panel of randomly selected American consumers
convened by BP. The company wants to find out what people like you think about its actions in
the wake of Deepwater Horizon. How would you answer the question posed at the end of the
quote above? How would you explain your response?
Students’ answers will vary. With the Deepwater Horizon disaster, BP’s comment that everything
was back to normal and that substantial and reparative progress had been made would have made
many leery of the company’s honesty. BP was given many opportunities to tell the truth and to
take accountability for its actions and each time it lied and pointed the finger at other people.
4. “At this point,” says Edward Lawler III,
it’s hard to be optimistic about companies engaging in the type of redesign that is
needed in order for them to become sustainably effective. … There probably will be
some companies that change because their CEOs and senior managers feel it’s the
right thing to do, but unfortunately they are likely to be the exceptions, not the norm. It
is likely that in the foreseeable future, sustainability will continue to get some attention
in corporations, but it will not be a major focus or a top priority, and as a result
corporations will not have a more positive social and environmental impact.
How about you? Do you agree or disagree? Explain why you are optimistic or pessimistic.
Students’ answers will vary. Businesses must fulfill their responsibility to shareholders, and this
means that companies must have business goals that align with enhancing the resilience of all
natural systems, making them healthier and stronger instead of eroding them.
© 2019 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.