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PRAYER BREAK
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 Chapter 3

The Foundations of Modern

Leadership

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 Learning Objectives

• Identify the three major eras in the study of leadership

and their contributions to modern leadership
• Present and be able to evaluation the contributions of
the early theories of leadership including the following
– Fiedler’s Contingency Model
– The Normative Decision Model
– Path-Goal Theory
– Substitutes for Leadership
– Leader-Member Exchange
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 The Leadership Question

Do you think some people are born leaders and

can rise to the top no matter what the situation?
What key characteristics do they possess?

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 Eras of Modern Leadership

• The trait era: 1800s to mid-1940s

– Focus on leader personality
• The behavior era: mid-1940s to 1970s
– Focus on leader behavior
• The contingency era: early 1960s to present
– Focus on understanding both the leader and the
leadership situation

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 The Trait Era—Assumptions and
Findings

Assumptions Findings
• Leaders are born • No single trait or set
• Leaders have special of traits clearly
characteristics and define leaders
traits • Traits play a minimal
• Leaders and role
followers have • Traits are not the
different traits dominant factor in
leadership

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 The Behavior Era—Assumptions
and Findings

Assumptions Findings
• Behaviors rather than • Key behaviors are task-
traits matter structuring and
• Behaviors are relationships-
observable and consideration
measureable • Behaviors alone do not
• Behaviors can be determine effective
taught leadership
• No clear findings as to
which behaviors are
most effective
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 Examples of Major Leadership
Behaviors

Task-structuring Relationships-
• Set goals consideration
• Clarify expectations • Show empathy and
• Set schedules and understanding
timelines • Be friendly and
• Assign tasks approachable
• Allow participation
• Nurture followers

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 The Contingency Era—
Assumptions

• No one best way to lead

• Simple traits or behaviors alone do not
explain or predict leadership
• Understanding both leader trait/
behavior and situation is needed
• Personal and situational factors affect
leadership effectiveness

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Fiedler’s Contingency Model -1958

• Leadership effectiveness is a function of the

match or fit between leader’s style and the
leadership situation
• The leader’s style has a trait like quality and
cannot be changed from one situation to
another
• The leader must change the situation to fit his
or her style

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 Elements of Fiedler’s Contingency
Model

• The leader’s style

– Task or relationship motivation measured by the
LPC (least preferred coworker) scale

• Situational control
– Leader-member relations
– Task structure
– Position power

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 Task and Relationship—
Motivated Leaders
Task motivated (Low-LPC) • Relationship motivated
• Draws self-esteem from (High-LPC)
task completion • Draws self-esteem from
• Focuses on task first interpersonal
• Can be harsh with relationships
failing followers • Focuses on people first
• Considers competence a • Likes to please others
key follower trait • Considers loyalty to be
• Enjoys details key follower trait
• Gets bored with details

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 Fiedler’s Contingency Model
Low-LPC (Task)
G
R High-LPC (Relations)
O Productive
U
P

P
E
R
F
O
R
M
A
N
C
Not Productive
E
Leader-member relations
GOOD BAD

Task structure HIGH LOW HIGH LOW

Position power HIGH HIGH LOW HIGH LOW HIGH LOW HIGH

HIGH MODERATE LOW

SITUATIONAL CONTROL

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 Practical Implications of Fiedler’s
Contingency Model

• Leaders must understand their own style and their

leadership situation
• Leaders should focus on changing their leadership
situation to match their style rather than try to
change their style
• A good relationship with followers is key to a
leader’s ability to lead
• Leaders can seek training to compensate for lack of
task structure
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• Task Orientation = Structural
Orientation/Style
• Relationship Orientation =
Consideration Orientation/Style

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 The Normative Decision Model

• Leaders are effective when they use

decision styles that match the situation
• Leaders can learn to change and use
different decision styles
• Understanding the leadership situation is
essential to effectiveness

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Elements of the Normative Decision
Model

• The leader’s decision style

– Autocratic (himself/herself)
– Consultative (participate)
– Group (group takes the lead)
– Delegation (one person is allowed)
• Situational contingency factors
– Quality of the decision
– Acceptance of decision by subordinates
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 Contingency Factors in the
Normative Decision Model

• Quality requirements (QR)

• Commitment requirement (CR)
• Leader information (LI)
• Structure of the problem (programmed decision)
(ST)
• Commitment probability (CP)
• Goal congruence/alignment (GC)
• Employee conflict (CO)
• Subordinate information (SI)
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 Practical Implications of the
Normative Decision Model

• Leaders must understand their leadership

situation
• Leaders must learn different decision
styles
• Participation is not always desirable
• Leaders must pay attention to their
followers’ needs and reactions when
making decisions
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 Path-Goal Theory

• The leader’s primary role is to motivate

followers to complete their task by
removing obstacles

• The leader must change his or her

behaviors based on needs of the
followers

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 Path-Goal Theory

Le
str ader
co uctu
ns rin Leaders’ actions:
i de g
ra t a n d Focus on obstacle
i on
removal
Effectiveness:
Become comfortable
employee
with both task and
satisfaction and
consideration behaviors
motivation
Understand followers’
Situational
perception
contingencies:
 task structure,
employee need
for autonomy

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Practical Implications of Path-Goal
Theory

• Leaders must understand their followers’ perception

of the task
• Leaders must take their followers’ need for
challenge and autonomy into consideration
• When followers need challenge or the task is
challenging, leaders must avoid being directive
• When the task is routine, boring, or stressful,
leaders must be supportive

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 Substitutes for Leadership Model
(SLM)

• There are some situations where leaders

are not needed
• Various factors can substitute for
leadership behaviors or neutralize the
leader’s actions
• Leaders must learn to recognize situations
and use appropriate behaviors

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 a. SML: Follower Characteristics

• Experience and training substitute for

leader structuring
• Follower professionalism substitute for
leader consideration and structuring
• Lack of value for goals neutralizes leader
consideration and structuring

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 b. SLM: Task Characteristics

• Unambiguous tasks substitute for leader

structuring
• Direct feedback from task substitute for
leader structuring
• Challenging tasks substitute for leader
structuring and consideration

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 c. SLM: Organizational
Characteristics

• A cohesive team substitute for leader structuring and

consideration
• Leaders’ lack of power neutralizes structuring and
consideration
• Standardization and formalization substitute for
leader structuring
• Organizational rigidity neutralizes leader structuring
• Physical distance from followers neutralizes
structuring and consideration

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Practical Implications of the SLM

• Leaders can use various substitutes to free

up their time or to empower and develop
followers
• Technology can support the development
of substitutes
• Teams and autonomous work groups can
use substitutes positively

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 Leader-Member Exchange
Model/Relationship (LMX)

• Leadership is a personal relationship between

leaders and each of their followers
• Leaders do not treat every follower the same
• Every follower does not experience leadership the
same
• Leaders have closer and richer relationships with
followers in their in-group than with those who are
in out-group

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 LMX

F Follower/
subordinate
In-group F
Out-group 3
F
1 Leader F
F 4
F F
2 F
5
F F
F
F F
F

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 Stages of LMX

Creation of
emotional bond

Development of
trust

Testing and
assessment

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 Practical Implications of LMX

• Avoid highly differentiated groups

• Keep membership fluid and dynamic
• Maintain different in-groups for different activities
• Base in-group membership on performance and
potential
• Review criteria for in-group membership regularly
• Consider culture when determining membership

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 The Leadership Question
Revisited
• A leader is much more than a collection of traits.
• Leaders are not born. They are made from experience
and from the interaction of individual and many
contextual factors.
• There are no traits that guarantee that someone will be
an effective leader.
• Most leaders succeed when they find themselves in the
right situation that they can mold, or when they can
adapt their style to the situation.

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 What Do You Do?

You have been promoted to a new managerial position

and your team members are missing in action most of
time. Their performance is by and large excellent, but
getting them together is proving challenging. They are
away on various jobs, and although friendly, don’t seem
to need you much. You feel like you should establish
your authority.

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 Leadership Challenge

• India is a vertical collectivistic culture where

group membership determines one’s worth
• Office manager is acting in accordance with his
or her culture
• Carefully evaluate the consequences of not
hiring the “cousin”
• In-groups are formed differently in different
cultures

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 Leading Change:
Goodnight

• Challenging work, flexible hours, and many

benefits keep employees happy
• Goodnight believes in removing obstacles to
let employees do their job
• He provides opportunities for challenge and
performance
• The role of the leader at SAS is to facilitate
employee performance

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 Leadership in Action:
The Caring Dictator

• Highly successful leader and organization

• Hartnett is autocratic and nonparticipative
• Hartnett provides clear goals and rules
• Caring father figure
• Careful selection of managers and employees
who fit the organization
• Leadership works because it fits the situation

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