Management

Fifteenth Edition, Global Edition

Chapter 17
Being an Effective Leader

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Learning Objectives
17.1 Define leader and leadership.
17.2 Compare and contrast early theories of leadership.
17.3 Describe the three major contingency theories of
leadership.
17.4 Describe contemporary views of leadership.
17.5 Compare the various theories of leadership for their
validity.
17.6 Discuss twenty-first century issues affecting
leadership.

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Who Are Leaders and What is Leadership?
• Leader: someone who can influence others and who has
managerial authority
• Leadership: a process of influencing a group to achieve
goals

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Leadership Traits
• Research focused on identifying personal characteristics
that differentiated leaders from non-leaders was
unsuccessful who can influence others and who has
managerial authority.
• It proved impossible to identify a set of traits that would
always differentiate a leader (the person) from a nonleader
of influencing a group to achieve goals.

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Exhibit 17.1 Ten Traits Associated with Leadership
Trait Description

Drive Leaders exhibit a high effort level. They have a relatively high desire for achievement,
they are ambitious, they have a lot of energy, they are tirelessly persistent in their
activities, and they show initiative.

Desire to Leaders have a strong desire to influence and lead others. They demonstrate the
lead willingness to take responsibility.
Honesty Leaders build trusting relationships with followers by being truthful or nondeceitful and
and integrity by showing high consistency between word and deed.
Self- Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to
confidence show self-confidence in order to convince followers of the rightness of their goals and
decisions.
Intelligence Leaders need to be intelligent enough to gather, synthesize, and interpret large
amounts of information, and they need to be able to create visions, solve problems,
and make correct decisions.

Job-relevant Effective leaders have a high degree of knowledge about the company, industry, and
knowledge technical matters. In-depth knowledge allows leaders to make well-informed decisions
and to understand the implications of those decisions.

Extraversio Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or
n withdrawn.
Proneness Guilt proneness is positively related to leadership effectiveness because it produces a
to guilt strong sense of responsibility for others.

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Exhibit 17.1 (cont.) Ten Traits Associated
with Leadership

Trait Description
Emotional Empathetic leaders can sense others’ needs, listen to
Intelligence what followers say (and don’t say), and read the reactions
of others.

Conscientiousness People who are disciplined and able to keep

commitments
have an apparent advantage when it comes to leadership.

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Leadership Behaviors
• Behavioral theories: leadership theories that identify
behaviors that differentiate effective leaders from
ineffective leaders

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University of Iowa Studies
• Autocratic style: a leader who dictates work methods,
makes unilateral decisions, and limits employee
participation
• Democratic style: a leader who involves employees in
decision making, delegates authority, and uses feedback
as an opportunity for coaching employees
• Laissez-faire style: a leader who lets the group make
decisions and complete the work in whatever way it sees
fit

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Ohio State Studies
• Initiating structure: the extent to which a leader defines
his or her role and the roles of group members in attaining
goals
• Consideration: the extent to which a leader has work
relationships characterized by mutual trust and respect for
group members’ ideas and feelings
• High–high leader: a leader high in both initiating structure
and consideration behaviors

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University of Michigan Studies
• Two dimensions of leadership:
– Employee oriented
– Production oriented

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The Managerial Grid
• Managerial grid: a two-dimensional grid for appraising
leadership styles

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Exhibit 17.2 Behavioral Theories of Leadership
Study Behavioral Dimension Conclusion

University of Democratic style: involving subordinates, delegating Democratic style of

Iowa authority, and encouraging participation leadership was most
Autocratic style: dictating work methods, centralizing effective, although later
decision making, and limiting participation studies showed mixed
Laissez-faire style: giving group freedom to make results.
decisions and complete work
Ohio State Consideration: being considerate of followers’ ideas High–high leader (high in
and feelings consideration and high in
Initiating structure: structuring work and work initiating structure) achieved
relationships to meet job goals high subordinate
performance and
satisfaction, but not in all
situations.
University of Employee oriented: emphasized interpersonal Employee-oriented leaders
Michigan relationships and taking care of employees’ needs were associated with high
Production oriented: emphasized technical or task group productivity and higher
aspects of job job satisfaction.
Managerial Concern for people: measured leader’s concern for Leaders performed best with
Grid subordinates on a scale of 1 to 9 (low to high) a 9,9 style (high concern for
Concern for production: measured leader’s concern production and high concern
for getting job done on a scale of 1 to 9 (low to high) for people).

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Leader-Member Exchange (LM X) Theory
• Leader-member exchange theory (LM X): the leadership
theory that says leaders create in-groups and out-groups
and those in the in-group will have higher performance
ratings, less turnover, and greater job satisfaction

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Charismatic Leadership
• Charismatic leader: an enthusiastic, self-confident leader
whose personality and actions influence people to behave
in certain ways

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Transformational/Transactional Leadership
• Transactional leaders: leaders who lead primarily by
using social exchanges (or transactions)
• Transformational leaders: leaders who stimulate and
inspire (transform) followers to achieve extraordinary
outcomes

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Authentic Leadership
• Authentic leadership: leaders who know who they are,
know what they believe in, and act on those values and
beliefs openly and candidly

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Ethical Leadership
• An ethical leader puts public safety ahead of profits, holds
culpable employees accountable, and creates a culture in
which employees feel that they could and should do a
better job.

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Integrating Theories of Leadership (1 of 2)
• Traits: traits probably play a small role in leadership.
• Behaviors: three metacategories of behaviors appear to
be the most important leadership behaviors.
1. Task-oriented behavior
2. Relations-oriented behavior
3. Change-oriented behavior

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Integrating Theories of Leadership (2 of 2)
• Contingency factors: the most relevant contingency factors
affecting leadership are:
– Follower’s experience
– Follower’s ability
– Organizational culture
– National culture

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Managing Power (1 of 2)
• Legitimate power: the power a leader has as a result of
his or her position in the organization
• Coercive power: the power a leader has to punish or
control
• Reward power: the power a leader has to give positive
rewards

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Managing Power (2 of 2)
• Expert power: power that’s based on expertise, special
skills, or knowledge
• Referent power: power that arises because of a person’s
desirable resources or personal traits

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Developing Trust
• Credibility: the degree to which followers perceive
someone as honest, competent, and able to inspire
• Trust: the belief in the integrity, character, and ability of a
leader

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Five Dimensions of Trust
• Integrity
• Competence
• Consistency
• Loyalty
• Openness

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Leading Virtual Teams
• Emerging technologies make working remotely more and
more common.
• The lack of a “face-to-face” feature presents unique
leadership challenges.
• Managers need to become effective virtual leaders.
• The informal interaction or “water cooler talk” is restricted
in the virtual world. Managers need to overcome this in
some way.

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Review Learning Objective 17.1
• Define leader and leadership.
– A leader influences and has authority
– Leadership involves influencing a group to achieve its
goal
– Leading is a function of management

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Review Learning Objective 17.2
• Compare and contrast early theories of leadership.
– University of Iowa studies
– Ohio State studies
– University of Michigan studies
– Managerial grid

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Review Learning Objective 17.3
• Describe the three major contingency theories of
leadership.
– Fiedler’s model
– Hersey and Blanchard’s situational leadership theory
– Path goal model, Robert House

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Review Learning Objective 17.4
• Discuss contemporary views of leadership.
– Leader-membership exchange theory (LM X)
– Transactional/transformational leader
– Charismatic/visionary leader
– Authentic leadership
– Ethical leadership
– Team leader

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Review Learning Objective 17.5
• Compare the various theories of leadership for their
validity.
– Traits may play a very small role in defining leaders
– Relationship-oriented behaviors are the most important
leadership behavior
– Contingency factors most relevant to leadership are
follower’s experience and ability; and organizational
and national culture

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Review Learning Objective 17.6
• Describe twenty-first century issues affecting
leadership.
– Five sources of a leader’s power
– Issues of:
 managing power
 developing trust
 empowering employees
 leading across cultures
 becoming an effective leader

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