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Management

Fifth Canadian Edition


John R. Schermerhorn, Bachrach, Jr. Barry Wright

Chapter 14
Leading and Leadership Development

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Copyright ©2021 John Wiley & Sons Canada, Ltd.


Learning Objectives
14.1 Discuss leadership and explain its foundations in
power, vision, and service.
14.2 Describe key leader behaviours that impact
leadership effectiveness.
14.3 Identify how situational contingencies influence
leadership effectiveness.
14.4 Summarize the challenges of personal leadership
development.

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The Nature of Leadership (1 of 13)
Leadership
• The process of inspiring others to work hard to accomplish
important tasks
• One of the four functions that constitute the management
process

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The Nature of Leadership (2 of 13)

Leading viewed in relationship to the other management functions

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The Nature of Leadership (3 of 13)
Power
• The 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 than seeking to exercise control
for personal satisfaction

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The Nature of Leadership (4 of 13)
Two sources of managerial power:
Position power
• Based on a manager’s official status in the organization’s
hierarchy of authority
Personal power
• Based on the unique personal qualities that a person
brings to the leadership situation

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The Nature of Leadership (5 of 13)
Sources of position power:
• Reward power - capability to offer something of value
• Coercive power - capability to punish or withhold positive
outcomes
• Legitimate power - organizational position or status
confers the right to control those in subordinate positions

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The Nature of Leadership (6 of 13)
Sources of personal power:
• Expert Power – ability to influence behaviours through
skills, knowledge, reputation
• Information and Networking Power – ability to influence
behaviours through access to information and contacts
• Referent Power – ability to influence behaviours through
identification with others

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The Nature of Leadership (7 of 13)

Position Power

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The Nature of Leadership (8 of 13)

Personal power

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The Nature of Leadership (9 of 13)
The power paradox
• There is a human tendency to misuse or abuse power
• The skills most important to obtaining power are the skills
that deteriorate once power is obtained
• The five-fold path to enduring power:
o Be aware of your feelings about power
o Practice humility
o Stay focused on others and give
o Practice respect
o Change the psychological context of powerlessness

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The Nature of Leadership (10 of 13)
Visionary leadership
• Vision
o A future that one hopes to create or achieve in order to
improve upon the present state of affairs
• Visionary leadership
o 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

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The Nature of Leadership (11 of 13)
Servant leadership
• Commitment to serving others
• Followers more important than leader
• “Other centered” not “self-centered”
• Power not a “zero-sum” quantity
• Focuses on empowerment, not power

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The Nature of Leadership (12 of 13)
Empowerment
• The process through which managers enable and help
others to gain power and achieve influence
• Effective leaders empower others by providing them with:
o Information
o Responsibility
o Authority
o Trust

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The Nature of Leadership (13 of 13)
Leadership and followership
• Leadership and followership work collaboratively
• Followership is the act of joining with a leader to
accomplish tasks and goals
• The view is that leadership is something co-produced by
leaders and followers

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Leadership Traits and Behaviours (1 of 5)
Important traits for leadership success:
• Drive
• Self-confidence
• Creativity
• Cognitive ability
• Job-relevant knowledge
• Motivation
• Flexibility
• Honesty and integrity

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Leadership Traits and Behaviours (2 of 5)
Leadership behaviour
• Leadership behaviour theories focus on how leaders
behave when working with followers
• Leadership styles are recurring patterns of behaviours
exhibited by leaders
• Basic dimensions of leadership behaviours:
o Concern for the task to be accomplished
o Concern for the people doing the work

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Leadership Traits and Behaviours (3 of 5)
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
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Leadership Traits and Behaviours (4 of 5)

Classic leadership styles combining concerns for task and concerns for people

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Leadership Traits and Behaviours (5 of 5)
Classic leadership styles:
• Autocratic style
o Emphasizes task over people
• Human relations style
o Emphasizes people over task
• Laissez-faire style
o Shows little concern for task
• Democratic style
o Committed to both task and people

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Contingency Approaches to Leadership (1 of 25)

Fiedler’s Contingency Model


• Good leadership depends on a match between leadership
and situational demands
• Determining leadership style:
o Low LPC  task-motivated leaders
o 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

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Contingency Approaches to Leadership (2 of 25)

Fiedler’s contingency model


• Diagnosing situational control:
o Quality of leader-member relations (good or poor)
o Degree of task structure (high or low)
o Amount of position power (strong or weak)

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Contingency Approaches to Leadership (3 of 25)

Fiedler’s contingency model


• Task-motivated leaders are most successful in:
o Very favorable (high control) situations
o Very unfavorable (low control) situations
• Relationship-motivated leaders are most successful in:
o Situations of moderate control

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Contingency Approaches to Leadership (4 of 25)

Predictions on style–situation fit from Fiedler’s contingency leadership model

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Contingency Approaches to Leadership (5 of 25)

Hersey-Blanchard situational leadership model


• Leaders adjust their styles depending on the readiness, or
task maturity, of their followers
o Readiness — how able, willing, or confident followers are in
performing required tasks

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Contingency Approaches to Leadership (6 of 25)

Leadership implications of the Hersey-Blanchard situational leadership model

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Contingency Approaches to Leadership (7 of 25)

Hersey-Blanchard leadership styles:


• Delegating
o Low-task, low-relationship style
o Works best in high readiness-situations
• Participating
o Low-task, high-relationship style
o Works best in low- to moderate-readiness situations

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Contingency Approaches to Leadership (8 of 25)

Hersey-Blanchard leadership styles:


• Selling
o High-task, high-relationship style
o Work best in moderate- to high-readiness situations
• Telling
o High-task, low-relationship style
o Work best in low-readiness situations

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Contingency Approaches to Leadership (9 of 25)

House’s path-goal leadership theory


• Suggests that leaders can use all of the leadership styles
below, shifting back and forth
• Leadership styles for dealing with path-goal relationships:
o Directive leadership
o Supportive leadership
o Achievement-oriented leadership
o Participative leadership

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Contingency Approaches to Leadership (10 of 25)

Path-goal leadership styles


Directive leadership
• Communicate expectations
• Give directions
• Schedule work
• Maintain performance standards
• Clarify leader’s role

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Contingency Approaches to Leadership (11 of 25)

Path-goal leadership styles


Supportive leadership
• Make work pleasant
• Treat group members as equals
• Be friendly and approachable
• Show concern for subordinates’ well-being

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Contingency Approaches to Leadership (12 of 25)

Path-goal leadership styles


Achievement-oriented leadership
• Set challenging goals
• Expect high performance levels
• Emphasize continuous performance improvement
• Display confidence in meeting high standards

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Contingency Approaches to Leadership (13 of 25)

Path-goal leadership styles


Participative leadership
• Involve subordinates in decision making
• Consult with subordinates
• Ask for subordinates’ suggestions
• Use subordinates’ suggestions

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Contingency Approaches to Leadership (14 of 25)

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 participative leadership when performance incentives
are poor
• Use achievement-oriented leadership when task challenge
is insufficient

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Contingency Approaches to Leadership (15 of 25)

Substitutes for leadership


• Factors in the work setting that direct the work efforts
without the involvement of the leader
o Follower characteristics
• Ability, experience, independence
o Task characteristics
• Routine, feedback
o Organization characteristics
• Clarity of plans, formalized rules and procedures

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Contingency Approaches to Leadership (16 of 25)

Leader-Member Exchange Theory (LMX)


• Not all people are treated the same by leaders in
leadership situations
o “In groups”
• High LMX – enjoy special relationship with manager, resulting
in favourable treatment
o “Out groups”
• Low LMX – have less than special relationship with manager,
resulting in less than favourable treatment

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Contingency Approaches to Leadership (17 of 25)

Leader-Member Exchange Theory (LMX)


• High LMX relationship
o favourable personality
o competency
o compatibility
• Low LMX relationship
o low competency
o unfavorable personality
o low compatibility

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Contingency Approaches to Leadership (18 of 25)

Elements of leader–member exchange (LMX) theory

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Contingency Approaches to Leadership (19 of 25)

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:
o Authority decision – leader makes the decision
o Consultative decision – leader consults with team members
o Group decision – team makes the decision, with or without
leader participation

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Contingency Approaches to Leadership (20 of 25)

Leadership implications of the Vroom-Jago leader-participation model

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Contingency Approaches to Leadership (21 of 25)

Decision-making options in the Vroom-Jago leader-


participation theory:
• Decide alone
• Consult individually
• Consult with group
• Facilitate
• Delegate

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Contingency Approaches to Leadership (22 of 25)

Contingency factors in the Vroom-Jago leader-participation


theory:
• Decision quality
o Who has the information needed for problem solving
• Decision acceptance
o Importance of subordinate acceptance to eventual
implementation
• Decision time
o Time available to make and implement the decision

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Contingency Approaches to Leadership (23 of 25)

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

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Contingency Approaches to Leadership (24 of 25)

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

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Contingency Approaches to Leadership (25 of 25)

Benefits of participative decision methods:


• Help improve decision quality
• Help improve decision acceptance
• Help develop leadership potential
Potential disadvantages of participative decision methods:
• Lost efficiency
• Not particularly useful when problems must be solved
immediately

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Personal Leadership Development (1 of 9)

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

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Personal Leadership Development (2 of 9)

Transformational leader
• Someone who is truly inspirational as a leader and who
arouses others to seek extraordinary performance
accomplishments

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Personal Leadership Development (3 of 9)

Emotional intelligence
• The ability of people to manage emotions in social
relationships
• Characteristics of the emotionally intelligent leader:
o High self-awareness
o Motivated and persistent
o High social awareness
o Good self management
o Good relationship management

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Personal Leadership Development (4 of 9)

Gender and leadership


• Gender similarities hypothesis
o Males and females have similar psychological properties
o Men and women can be equally effective leaders
o Men and women are sometimes perceived as using
different styles of leadership

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Personal Leadership Development (5 of 9)

Gender and leadership


• Women tend to use interactive leadership
o A style that shares qualities with transformational
leadership
o Leaders with this style are democratic, participative, and
inclusive.
• Men tend to use transactional leadership and are more
directive
• Interactive leadership provides a good fit with the
demands of a diverse workforce and the new workplace

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Personal Leadership Development (6 of 9)

Moral leadership
• Ethical leadership that is always “good” and “correct”
• Integrity involves the leader’s honesty, credibility, and
consistency in putting values into action
• Moral overconfidence is an overly positive view of one’s
strength of character
• Authentic leadership activates positive psychological states
to achieve self awareness and positive self-regulation.

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Personal Leadership Development (7 of 9)

Character leadership
• Has the values, traits, and virtues that engender credibility
and trust
• Possesses attributes such as conscientiousness, openness,
extroversion, agreeableness, neuroticism
• Includes attributes of self-confidence, ambition,
perfectionism, dominance, and persistence
• Leaders’ values reveal what they consider to be worthwhile
• Virtues are behavioural habits that leaders can display
consistently

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Personal Leadership Development (8 of 9)

Drucker’s “good old-fashioned” leadership


• Leadership is more than charisma; it is “good old-
fashioned” hard work
• Leadership effectiveness must have strong foundations

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Personal Leadership Development (9 of 9)

Peter Drucker’s Straight Talk on Leadership


• Defining and communicating a clear vision
• 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

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Copyright
Copyright © 2021 John Wiley & Sons Canada, Ltd.
All rights reserved. Reproductions or translations of this work beyond that permitted by
Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for
further information should be addressed to the Permissions Department, John Wiley &
Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only
and not for distribution or resale. The author and the publisher assume no responsibility
for errors, omissions, or damages caused by the use of these programs or from the use of
the information contained herein.

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