MPW Chapter 15: Leadership

C. As shown in Exhibit 15.4, management and leadership reflect two different sets of qualities and skills that frequently overlap within a single individual. A person might have more of one set of qualities than the other, but ideally, a manager develops a balance of both manager and leader qualities.

- A primary distinction between management and leadership is that management promotes stability and order within the existing organizational structure and systems. This ensures that suppliers are paid, customers invoiced, products and services produced on time, and so forth. - Leadership, on the other hand, promotes vision and change. Leadership means questioning the status quo and being willing to take reasonable risks so that outdated, unproductive, or socially irresponsible norms can be replaced to meet new challenges.

4F. 5. Ask for what you want. Another way to influence others is to make a direct and personal request. Leaders have to be explicit about what they want or they aren't likely to get it.

- An explicit proposal is sometimes accepted simply because others have no better alternative. Also, a clear proposal or alternative will often receive support if other options are less well defined.

3F. -network of relationships- -People who are enmeshed in a network of relationships have greater power. A leader or employee with many relationships knows what's going on in the organization and industry, whereas one who has few interpersonal connections is often in the dark about important activities or changes. Networks of relationships are crucial in the political arena for instance.

- Abraham Lincoln is considered by historians to be one of the greatest U.S. presidents partly because he built relationships and listened carefully to a broad range of people both inside and outside of his immediate circle when the nation was so bitterly divided over the Civil War. He included people who didn't agree with him and were critical of his goals and plans.

C. From Management to Leadership -Good management is essential in organizations, yet managers have to be leaders too, because distinctive qualities are associated with management and leadership that provide different strengths for the organization

-A good way to think of the distinction between management and leadership is that management organizes the production and supply of fish to people, whereas leadership teaches and motivates people to fish. -Organizations need both types of skills

H. -A charismatic leader is a leader who has the ability to inspire and motivate people to transcend their expected performance, even to the point of personal sacrifice. -Both charismatic and transformational leaders provide followers with an inspiring vision, an attractive, ideal future that is credible, yet not readily attainable.

-A transformational leader is distinguished by a special ability to bring about innovation and change by creating an inspiring vision, shaping values, building relationships, and providing meaning for followers. -A transactional leader clarifies subordinates' roles and task requirements, initiates structure, provides rewards, and displays consideration for followers.

1E. Task Versus People -Two types of behavior that have been identified as applicable to effective leadership in a variety of situations and time periods are task-oriented behavior and people-oriented behavior.

-Although they are not the only important leadership behaviors, concern for tasks and concern for people must be shown at some reasonable level. Thus, many approaches to understanding leadership use these metacategories, or broadly defined behavior categories, as a basis for study and comparison.

I. The second dimension of follower style is active versus passive behavior.

-An active follower participates fully in the organization, engages in behavior that is beyond the limits of the job, demonstrates a sense of ownership, and initiates problem solving and decision making. -A passive follower, by contrast, is characterized by a need for constant supervision and prodding by superiors. Passivity is often regarded as laziness; a passive person does nothing that is not required and avoids added responsibility.

3B. An authentic leader like Vernon Clark places high value on personal relationships, supporting followers, being courageous, and standing up for what one believes. Thus, this type of leader is much more likely to make decisions that may not always be popular, but that he believes are right.

Clark also engaged people by emphasizing each individual's personal role. "What we do matters," he told them. "We do it because it's important and we are people of service. We are committed to something larger than ourselves: the protection of America's interests around the world and democracy."

G. Contingency Approaches -contingency approaches: A model of leadership that describes the relationship between leadership styles and specific situations (explores how the organizational situation influences leader effectiveness)

Contingency approaches include the situational model based on the work of Paul Hersey and Kenneth Blanchard, the leadership model developed by Fred Fiedler and his associates, and the substitutes-for-leadership concept.

2B. A servant leader transcends self-interest to serve others, the organization, and society.

In organizations, servant leaders operate on two levels: for the fulfillment of their subordinates' goals and needs and for the realization of the larger purpose or mission of their organization.

A. Leadership occurs among people, involves the use of influence, and is used to attain goals.

Influence means that the relationship among people is not passive. Moreover, influence is designed to achieve some end or goal.

4B. Gender Differences -Some of the general characteristics associated with Level 5 leaders and authentic leaders are also hallmarks of interactive leadership, which has been found to be associated with female leaders -Interactive leadership: A leadership style characterized by values such as inclusion, collaboration, relationship building, and caring.

Interactive leadership means that the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority.

4F. 4. Develop allies. Effective leaders develop networks of allies—people who can help the leader accomplish his or her goals.

Leaders talk with followers and others outside formal meetings to understand their needs and concerns, as well as to explain problems and describe the leader's point of view. They strive to reach a meeting of minds with others about the best approach to a problem or decision.

C. Google's CEO, Eric Schmidt's leadership principles: 1. Get to know your employees. 2. Create new ways to reward and promote high performers. 3. Let employees own the problems that you want them to solve. 4. Allow people to function outside the hierarchy. 5. Have employees' performance reviewed by someone whom they respect for their objectivity

Leadership cannot replace management; it should be in addition to management. Good management is needed to help the organization meet current commitments, while good leadership is needed to move the organization into the future. Leadership's power comes from being built on the foundation of a well-managed organization.

A. The attitudes and behaviors of leaders shape the conditions that determine how well employees can do their jobs; thus, leaders play a tremendous role in the organization's success.

Many different styles of leadership can be effective.

I. There may be some differences, but overall, many of the qualities that define a good follower are the same qualities as those possessed by a good leader. Leaders can develop an understanding of their followers and create the conditions that help them be most effective.

One model of followership is illustrated in Exhibit 15.10. Robert E. Kelley conducted extensive interviews with managers and their subordinates and came up with five follower styles, which are categorized according to two dimensions, as shown in the exhibit.

H. Charismatic and Transformational Leadership

Research has also looked at how leadership can inspire and motivate people beyond their normal levels of performance. Some leadership approaches are more effective than others for bringing about high levels of commitment and enthusiasm. Two types with a substantial impact are charismatic and transformational.

2B. Servant leaders give things away—power, ideas, information, recognition, credit for accomplishments, even money.

Servant leaders often work in the nonprofit world because it offers a natural way to apply their leadership drive and skills to serve others. But servant leaders also succeed in business.

4F. Research indicates that people rate leaders as "more effective" when they are perceived to use a variety of influence tactics. But not all managers use influence in the same way.

Studies have found that leaders in human resources, for example, tend to use softer, more subtle approaches, such as building goodwill, using favors, and developing allies, whereas those in finance are inclined to use harder, more direct tactics, such as formal authority and assertiveness.

1G. Exhibit 15.7 summarizes the situational relationship between leader style and follower readiness. The S1 telling style has the highest probability of successfully influencing low-readiness followers who are unable or unwilling—because of poor ability and skills, lack of experience, or insecurity—to take responsibility for their own task behavior. The leader is specific, telling people exactly what to do, how to do it, and when.

The S2 selling and S3 participating styles work for followers at moderate-to-high readiness levels. For example, followers might lack some education and experience for the job but have high confidence, interest, and willingness to learn. As shown in the exhibit, the S2 selling style is effective in this situation because it involves giving direction, but it also includes seeking input from others and clarifying tasks rather than simply instructing that they be performed. When followers have the necessary skills and experience but are somewhat insecure in their abilities or lack high willingness, the S3 participating style enables the leader to guide followers' development and act as a resource for advice and assistance.

I. The conformist participates actively in a relationship with the boss but doesn't use critical-thinking skills. In other words, a conformist participates willingly, but without considering the consequences of what he or she is being asked to do—even at the risk of contributing to a harmful endeavor. -Adam Michaelson writes of the groupthink and blind conformity that squelched resistance and led people to go along with company actions even if they thought they were wrong. -A conformist is concerned only with avoiding conflict. This follower style might reflect an individual's overdependent attitude toward authority, yet it can also result from rigid rules and authoritarian environments that create a culture of conformity.

The pragmatic survivor has qualities of all four extremes—depending on which style fits with the prevalent situation. -This type of person uses whatever style best benefits his or her own position and minimizes risk. Pragmatic survivors often emerge when an organization is going through desperate times, and individuals find themselves doing whatever is needed to get through the difficulty. -Within any given company, some 25 to 35 percent of people tend to be pragmatic survivors, avoiding risks and fostering the status quo.

2G. Researchers at the University of Chicago who looked at CEOs in turnaround situations—where companies typically have high debt loads and a need to improve results in a hurry—found that tough-minded, task-focused characteristics such as analytical skills, a focus on efficiency, and setting high standards were more valuable leader qualities than were relationship skills such as good communication, listening, and teamwork

The relationship-oriented leader performs better in situations of intermediate favorability because human relations skills are important in achieving high group performance. In these situations, the leader may be moderately well liked, have some power, and supervise jobs that contain some ambiguity. A leader with good interpersonal skills can create a positive group atmosphere that will improve relationships, clarify task structure, and establish position power.

4F. -six interpersonal influence tactics for leaders- 1. Use rational persuasion. The most frequently used influence strategy is to apply facts, data, and logical argument to persuade others that a proposed idea, request, or decision is appropriate.

Using rational persuasion can often be highly effective because most people have faith in facts and analysis. Rational persuasion is most successful when a leader has technical knowledge and expertise related to the issue at hand (expert power), although referent power is also used. That is, in addition to facts and figures, people have to believe in the leader's credibility

1F. Hard Position Power -The traditional manager's power comes from the organization (hard power). The manager's position gives him or her the ability to reward or punish subordinates to influence their behavior.

-Legitimate power, reward power, and coercive power are all forms of position power used by managers to change employee behavior.

2G. -situation: favorable of unfavorable?- -The suitability of a person's leadership style is determined by whether the situation is favorable or unfavorable to the leader. The favorability of a leadership situation can be analyzed in terms of three elements: the quality of relationships between leader and followers, the degree of task structure, and the extent to which the leader has formal authority over followers.

-As illustrated in the lower portion of Exhibit 15.8, a situation would be considered highly favorable to the leader when leader-member relationships are positive, tasks are highly structured, and the leader has formal authority over followers. In this situation, followers trust, respect, and have confidence in the leader. The group's tasks are clearly defined, involve specific procedures, and have clear, explicit goals. -In addition, the leader has formal authority to direct and evaluate followers, along with the power to reward or punish. -In a highly unfavorable situation, followers have little respect for or confidence and trust in the leader. Tasks are vague and ill-defined and lack clear-cut procedures and guidelines. The leader has little formal authority to direct subordinates and does not have the power to issue rewards or punishments.

1H. Charisma can be used for positive outcomes that benefit the group, but it can also be used for self-serving purposes that lead to the deception, manipulation, and exploitation (and even deaths) of others. -When charismatic leaders respond to organizational problems in terms of the needs of the entire group rather than their own emotional needs, they can have a powerful, positive influence on organizational performance.

-As with the Level 5 and authentic leadership approaches that we discussed earlier in the chapter, humility typically plays an important part in distinguishing whether a charismatic leader will work to benefit primarily the larger organization or use his or her gifts for ego-building and personal gain.

F. Power is the potential ability to influence the behavior of others. -All leaders use power to influence people and accomplish organizational goals

-Both leaders and followers can tap into other sources of power, including personal effort, networks of relationships, and access to or control over information. -Leaders use a wide range of interpersonal influence tactics, and people who use a wider variety of tactics are typically perceived as having greater power.

C. -Leadership and management reflect two different sets of qualities and skills that provide different benefits for the organization. -Management promotes stability and efficient organizing to meet current commitments, whereas leadership often inspires engagement and organizational change to meet new conditions.

-Both leadership and management are important to organizations, and people can learn to be good leaders as well as good managers. -When he was hired as CEO of Google, Eric Schmidt applied both skilled management and good leadership to take the startup to the next stage of growth.

1H. Charismatic Leadership -Charisma has been referred to as "a fire that ignites followers' energy and commitment, producing results above and beyond the call of duty." -The charismatic leader has the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacrifice. Followers are willing to put aside their own interests for the sake of the team, department, or organization. The impact of charismatic leaders normally comes from: (1)stating a lofty vision of an imagined future that employees identify with, (2)displaying an ability to understand and empathize with followers, and (3)empowering and trusting subordinates to accomplish results.

-Charismatic leaders tend to be less predictable because they create an atmosphere of change, and they may be obsessed by visionary ideas that excite, stimulate, and drive other people to work hard.

1H. Charismatic leaders are skilled in the art of "visionary leadership". -A "vision" is an attractive, ideal future that is credible yet not readily attainable. -Vision is an important component of both charismatic and transformational leadership. Visionary leaders speak to the hearts of employees, letting them be part of something bigger than themselves. Where others see obstacles or failures, they see possibility and hope.

-Charismatic leaders typically have a strong vision for the future, almost an obsession, and they can motivate others to help realize it. These leaders have an emotional impact on subordinates because they strongly believe in the vision and can communicate it to others in a way that makes the vision real, personal, and meaningful.

1B. Level 5 Leadership -Jim Collins' book -identified the critical importance of what Collins calls Level 5 leadership in transforming companies from merely good to truly great organizations

-Level 5 leadership refers to the highest level in a hierarchy of manager capabilities, as illustrated in Exhibit 15.1.

3G. Situational Substitutes for Leadership -The contingency leadership approaches considered so far focus on the leader's style, the subordinates' nature, and the situation's characteristics. -The final contingency approach suggests that situational variables can be so powerful that they actually substitute for or neutralize the need for leadership. This approach outlines those organizational settings in which a leadership style is unimportant or unnecessary.

-Exhibit 15.9 shows the situational variables that tend to substitute for or neutralize leadership characteristics. -A substitute for leadership makes the leadership style unnecessary or redundant. For example, highly professional subordinates who know how to do their tasks do not need a leader who initiates structure for them and tells them what to do. -A neutralizer counteracts the leadership style and prevents the leader from displaying certain behaviors. For example, if a leader has absolutely no position power or is physically removed from subordinates, the leader's ability to give directions to subordinates is greatly reduced.

2G. A leader, then, needs to know two things to use Fiedler's contingency theory. -First, the leader should know whether he or she has a relationship- or task-oriented style. -Second, the leader should diagnose the situation and determine whether leader-member relations, task structure, and position power are favorable or unfavorable.

-Fiedler believed fitting leader style to the situation can yield big dividends in profits and efficiency. -On the other hand, the model has also been criticized. For one thing, some researchers have challenged the idea that leaders cannot adjust their styles as situational characteristics change. -Despite criticisms, Fiedler's model has continued to influence leadership studies. Fiedler's research called attention to the importance of finding the correct fit between leadership style and situation.

2H. Studies show that transformational leadership has a positive impact on follower development and follower performance. -Moreover, transformational leadership skills can be learned and are not ingrained personality characteristics. However, some personality traits may make it easier for a leader to display transformational leadership behaviors.

-For example, studies of transformational leadership have found that the trait of agreeableness, as discussed in the previous chapter, is often associated with transformational leaders. In addition, transformational leaders are typically emotionally stable and positively engaged with the world around them, and they have a strong ability to recognize and understand others' emotions. -These characteristics are not surprising, considering that these leaders accomplish change by building networks of positive relationships.

4F. 6. Appeal to higher authority. Sometimes, to get things done, leaders have to use their formal authority, as well as gain the support of people at higher levels to back them up.

-However, research has found that the key to successful use of formal authority is to be knowledgeable, credible, and trustworthy—that is, to demonstrate expert and referent power as well as legitimate power. Managers who become known for their expertise, who are honest and straightforward with others, and who inspire trust can exert greater influence than those who simply issue orders.

4F. Interpersonal Influence Tactics -Leaders often use a combination of influence strategies, and people who are perceived as having greater power and influence typically are those who use a wider variety of tactics. One survey of a few hundred leaders identified more than 4,000 different techniques that these people used to influence others

-However, these tactics fall into basic categories that rely on understanding the principles that cause people to change their behavior and attitudes. Exhibit 15.11 lists six principles for asserting influence. Notice that most of these involve the use of personal power rather than relying solely on position power or the use of rewards and punishments.

1B. Level 5 leadership refers to the highest level in a hierarchy of manager capabilities, as illustrated in Exhibit 15.1

-Humility: Being unpretentious and modest rather than arrogant and prideful. -Level 5 leaders often seem shy and self-effacing - Although they accept full responsibility for mistakes, poor results, or failures, Level 5 leaders give credit for successes to other people -Level 5 leaders build organizations based on solid values that go far beyond just making money, with an unwavering resolve to do whatever is needed to make the company successful over the long term

3F. Both leaders and followers can tap into these additional sources of power. Leaders succeed when they take the time to build relationships both inside and outside the organization and to talk informally about important projects and priorities.

-Jack Griffin was forced out as CEO of Time Inc. after less than six months on the job, largely because he failed to develop positive relationships. Griffin tried to use the hard power of his position to make needed changes at Time without building the soft-power connections needed to implement the changes. Board members began to realize that Griffin had become so unpopular that the company was likely to lose valuable employees if he stayed on as CEO.

I. Effective followers recognize that they have power in their relationships with superiors; thus, they have the courage to manage upward, to initiate change, and even to put themselves at risk or in conflict with the boss if they believe that it serves the best interest of the team or organization.

-Leaders can accomplish nothing without effective followers.

2E. The Leadership Grid -Building on the work of the Ohio State and Michigan studies, Robert R. Blake and Jane S. Mouton of the University of Texas proposed a two-dimensional theory called the Managerial Grid®, which was later restated by Robert R. Blake and Anne Adams McCanse as the Leadership Grid®

-Leadership Grid®: A two-dimensional leadership model that measures the leader's concern for people and concern for production to categorize the leader in one of five different leadership styles. The model and five of its major management styles are depicted in Exhibit 15.6. Each axis on the grid is a nine-point scale, with 1 meaning low concern and 9 meaning high concern.

2E. Team management (9, 9) often is considered the most effective style and is recommended for leaders because organization members work together to accomplish tasks. -Country club management (1, 9) occurs when the primary emphasis is given to people rather than to work outputs. -Authority-compliance management (9, 1) occurs when efficiency in operations is the dominant orientation.

-Middle-of-the-road management (5, 5) reflects a moderate amount of concern for both people and production. -Impoverished management (1, 1) means the absence of a management philosophy; managers exert little effort toward interpersonal relationships or work accomplishment.

3F. -personal effort-

-People who show initiative, work beyond what is expected of them, take on undesirable but important projects, and show interest in learning about the organization and industry often gain power as a result.

1F. Referent power does not depend on a formal title or position. When employees admire a supervisor because of the way that she deals with them, the influence is based on referent power. Referent power is most visible in the area of charismatic leadership. In social and religious movements, we often see charismatic leaders who emerge and gain a tremendous following based solely on their personal power.

-Referent power: Power that results from characteristics that command subordinates' identification with, respect and admiration for, and desire to emulate the leader.

E. -Two basic leadership behaviors identified as important for leadership are attention to tasks and attention to people.

-Researchers at the University of Michigan used the terms employee-centered leaders and job-centered leaders to describe the same two basic leadership behaviors.

3G. A contingency approach is a model of leadership that describes the relationship between leadership styles and specific situations. -One contingency approach is the situational model, which links the leader's behavioral style with the readiness level of followers. -In general, a task-oriented leader style fits a low-readiness follower, and a relationship leader style fits a higher-readiness follower. -In Fiedler's contingency theory, the suitability of a leader's style is determined by whether the situation is considered favorable or unfavorable to the leader.

-Task-oriented leaders are considered to perform better in either highly favorable or highly unfavorable situations. -Relationship-oriented leaders are considered to perform better in situations of intermediate favorability. -A substitute for leadership is a situational variable that makes a leadership style redundant or unnecessary. -A neutralizer is a situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors.

I. The extent to which an individual is active or passive and is an independent, critical thinker or a dependent, uncritical thinker determines whether the person will be an alienated follower, a passive follower, a conformist, a pragmatic survivor, or an effective follower, as illustrated in Exhibit 15.10:

-The alienated follower is a passive, yet independent, critical thinker. Alienated employees are often effective followers who have experienced setbacks and obstacles—perhaps promises broken by their superiors. Thus, they are capable, but they focus exclusively on the shortcomings of their bosses. Often cynical, alienated followers are able to think independently, but they do not participate in developing solutions to the problems or deficiencies that they see. These people waste valuable time complaining about their boss without offering constructive feedback.

4B. McGovern believes that having personal contact with employees and letting them know that they're appreciated is a primary responsibility of leaders.

-The characteristics associated with interactive leadership are emerging as valuable qualities for both male and female leaders in today's workplace -The results showed that traits considered feminine and often associated with interactive leadership, such as empathy, personal humility, inclusiveness, vulnerability, generosity, patience, and flexibility, topped the list of qualities most desirable for leaders

D. Leadership Traits -Early efforts to understand leadership success focused on the leader's traits. Traits are the distinguishing personal characteristics of a leader, such as intelligence, honesty, self-confidence, energy, independence, and even appearance.

-The early research looked at leaders who had achieved a level of greatness, and hence was referred to as the "Great Man" approach. The idea was relatively simple: Find out what made these people great, and select future leaders who already exhibited the same traits or could learn to develop them. Generally, early research found only a weak relationship between personal traits and leader success

4F. 3. Rely on the rule of reciprocity. Leaders can influence others through the exchange of benefits and favors. Leaders share what they have—whether it is time, resources, services, or emotional support.

-The feeling among people is nearly universal that others should be paid back for what they do, in one form or another. This unwritten "rule of reciprocity" means that leaders who do favors for others can expect that others will do favors for them in return.

1E. Research at the University of Michigan at about the same time also considered task- and people-oriented behaviors by comparing the behavior of effective and ineffective supervisors.

-The most effective supervisors were those who established high performance goals and displayed supportive behavior toward subordinates. These were referred to as "employee-centered leaders". -The less effective leaders were called "job-centered leaders"; they tended to be less concerned with goal achievement and human needs in favor of meeting schedules, keeping costs low, and achieving production efficiency.

1G. According to the situational model, a leader can adopt one of four leadership styles, as shown in Exhibit 15.7. -The telling style (S1) is a highly dictating style and involves giving explicit directions about how tasks should be accomplished. -The selling style (S2) is one where the leader explains decisions and gives subordinates a chance to ask questions and gain clarity and understanding about work tasks.

-The participating style (S3) is one where the leader shares ideas with subordinates, gives them a chance to participate, and facilitates decision making. -The fourth style, the delegating style (S4), provides little direction and little support because the leader turns over responsibility for decisions and their implementation to subordinates.

2G. Fiedler's Contingency Theory -Whereas the situational model focused on the characteristics of followers, Fiedler and his associates looked at some other elements of the organizational situation to assess when one leadership style is more effective than another

-The starting point for Fiedler's theory is the extent to which the leader's style is task-oriented or relationship-(people) oriented. Fiedler considered a person's leadership style to be relatively fixed and difficult to change; therefore, the basic idea is to match the leader's style with the situation most favorable for his or her effectiveness. By diagnosing leadership style and the organizational situation, the correct fit can be arranged.

2G. -matching leader style to the situation- -When Fiedler examined the relationships among leadership style and situational favorability, he found the pattern shown in the upper portion of Exhibit 15.8. -Task-oriented leaders are more effective when the situation is either highly favorable or highly unfavorable. -Relationship-oriented leaders are more effective in situations of moderate favorability.

-The task-oriented leader excels in the favorable situation because everyone gets along, the task is clear, and the leader has power; all that is needed is for someone to lead the charge and provide direction. -Similarly, if the situation is highly unfavorable to the leader, a great deal of structure and task direction is needed. A strong leader will define task structure and establish strong authority. Because leader-member relations are poor anyway, a strong task orientation will make no difference in the leader's popularity.

I. Followership -No discussion of leadership is complete without a consideration of followership. Indeed, despite the focus on leadership, everybody in an organization is both a follower and a leader. -Leadership matters, but without effective followers, no organization can survive. People have different expectations of what constitutes a good follower versus a good leader, as illustrated by the results of studies asking people to rank the desired characteristics of leaders and followers.

-The top five qualities desired in each are as follows: Leader: -honest -competent -forward looking -inspiring -intelligent Follower: -honest -competent -dependable -cooperative -loyal

2H. Transformational leadership can be better understood in comparison to transactional leadership. -Transactional leaders: A leader who clarifies subordinates' roles and task requirements, initiates structure, provides rewards, and displays consideration for followers.

-The transactional leader's ability to satisfy subordinates may improve productivity. Transactional leaders excel at management functions. They are hardworking, tolerant, and fair-minded. They take pride in keeping things running smoothly and efficiently. -Transactional leaders often stress the impersonal aspects of performance, such as plans, schedules, and budgets. They have a sense of commitment to the organization and conform to organizational norms and values. -Transactional leadership is important to all organizations, but leading change requires a different approach.

3G. Situational variables in Exhibit 15.9 include characteristics of the group, the task, and the organization itself. -When followers are highly professional and experienced, both leadership styles are less important. People do not need much direction or consideration. -With respect to task characteristics, highly structured tasks substitute for a task-oriented style and a satisfying task substitutes for a people-oriented style. -With respect to the organization itself, group cohesiveness substitutes for both leader styles. Formalized rules and procedures substitute for leader task orientation. Physical separation of leader and subordinate neutralizes both leadership styles.

-The value of the situations described in Exhibit 15.9 is that they help leaders avoid leadership overkill. Leaders should adopt a style with which to complement the organizational situation. -Consider the work situation for bank tellers. A bank teller performs highly structured tasks, follows clearly written rules and procedures, and has little flexibility in terms of how to do the work. The head teller should not adopt a task-oriented style because the organization already provides structure and direction. The head teller should concentrate on a people-oriented style to provide a more pleasant work environment. -In other organizations, if group cohesiveness or intrinsic satisfaction meets employees' social needs, the leader is free to concentrate on task-oriented behaviors. The leader can adopt a style complementary to the organizational situation to ensure that both the task needs and people needs of the work group will be met.

3F. Other Sources of Power -There are additional sources of power that are not linked to a particular person or position, but rather to the role that an individual plays in the overall functioning of the organization.

-These important sources include personal effort, relationships with others, and information.

1G. When followers demonstrate very high readiness (that is, they have high levels of education, experience, and readiness to accept responsibility for their own task behavior), the S4 delegating style can effectively be used. Because of the high readiness level of followers, the leader can delegate responsibility for decisions and their implementation to subordinates who have the skills, abilities, and positive attitudes to follow through. The leader provides a general goal and sufficient authority to do the task as followers see fit.

-To apply the situational model, the leader diagnoses the readiness level of followers and adopts the appropriate style—telling, selling, participating, or delegating. -A delegating leader style is not always appropriate, but all managers need to be able to delegate some tasks and decisions for the organization to work smoothly.

3F. -information- -Information is a primary business resource, and people who have access to information and control over how and to whom it is distributed are typically powerful.

-To some extent, access to information is determined by a person's position in the organization. Top managers typically have access to more information than middle managers, who in turn have access to more information than lower-level supervisors or front-line employees.

2H. Transformational versus Transactional Leadership -Transformational leaders: A leader distinguished by a special ability to bring about innovation and change by creating an inspiring vision, shaping values, building relationships, and providing meaning for followers.

-Transformational leaders are similar to charismatic leaders, but they are distinguished by their special ability to bring about innovation and change by recognizing followers' needs and concerns, providing meaning, challenging people to look at old problems in new ways, and acting as role models for the new values and behaviors. -Transformational leaders inspire followers not just to believe in the leader personally, but to believe in their own potential to imagine and create a better future for the organization. Transformational leaders create significant change in both followers and the organization

2H. Transformational leaders have the ability to lead changes in the organization's mission, strategy, structure, and culture, as well as to promote innovation in products and technologies.

-Transformational leaders do not rely solely on tangible rules and incentives to control specific transactions with followers. They focus on intangible qualities, such as vision, shared values, and ideas, to build relationships, give larger meaning to diverse activities, and find common ground to enlist followers in the change process.

E. Behavioral Approaches -The inability to define effective leadership based solely on traits led to an interest in looking at the behavior of leaders and how it might contribute to leadership success or failure.

-Two basic leadership behaviors identified as important for leadership are attention to tasks and attention to people.

2F. Personal Soft Power -Effective leaders don't rely solely on the hard power of their formal position to influence others. -In contrast to the external sources of position power, personal power most often comes from internal sources, such as an individual's special knowledge or personal characteristics. Personal power is the primary tool of the leader, and it is becoming increasingly important as more businesses are run by teams of workers who are less tolerant of authoritarian management

-Two types of personal power are expert power and referent power.

4F. 2. Help people to like you. People would rather say yes to someone they like than to someone they don't. Effective leaders strive to create goodwill and favorable impressions.

-When a leader shows consideration and respect, treats people fairly, and demonstrates trust in others, people are more likely to want to help and support this person by doing what he or she asks. In addition, most people like a leader who makes them feel good about themselves, so leaders should never underestimate the power of praise.

B. -A significant influence on leadership styles in recent years is the turbulence and uncertainty of the environment. -One effective approach in today's environment is Level 5 leadership, which is characterized by an almost complete lack of ego (humility), coupled with a fierce resolve to do what is best for the organization (will).

-Women leaders typically score significantly higher than men on abilities such as motivating others, building relationships, and developing others—skills that are based on humility and authenticity and are particularly suited to today's organizations. -Although interactive leadership is associated with women's style of leading, both men and women can be effective interactive leaders.

3B. Authentic Leadership

-authentic leadership: Leadership by individuals who know and understand themselves, who espouse and act consistent with higher-order ethical values, and who empower and inspire others with their openness and authenticity.

1F. The opposite of reward power is coercive power. -Managers have coercive power when they have the right to fire or demote employees, criticize them, or withhold pay increases. If an employee does not perform as expected, the manager has the coercive power to reprimand him, put a negative letter in his file, deny him a raise, and hurt his chances for a promotion.

-coercive power: Power that stems from the authority to punish or recommend punishment.

I. The first dimension is the quality of independent, critical thinking versus dependent, uncritical thinking. -Independent, critical thinkers are mindful of the effects of their own and others' behavior on achieving organizational goals. They can weigh the impact of their boss's and their own decisions and offer constructive criticism, creativity, and innovation. -Conversely, a dependent, uncritical thinker does not consider possibilities beyond what he or she is told, does not contribute to the cultivation of the organization, and accepts the supervisor's ideas without thinking.

-critical thinking: Thinking independently and being mindful of the effect that one's behavior has on achieving goals. -uncritical thinking Failing to consider the possibilities beyond what one is told, accepting others' ideas without thinking.

2F. When someone is a true expert, others go along with recommendations because of his or her superior knowledge. Both followers and leaders can possess expert power. For example, some managers lead teams in which members have expertise that the leader lacks. Some leaders at top management levels may lack expert power because subordinates know more about technical details than they do.

-expert power: Power that results from a leader's special knowledge or skill in the tasks performed by subordinates.

A. leadership: The ability to influence people toward the attainment of organizational goals.

-leaders are involved w/ other people in the achievement of goals -leadership is reciprocal, occurring among people -it's also a "people" activity, distinct from administrative paperwork or problem-solving activities

1F. Once a person has been selected as a supervisor, most employees understand that they are obligated to follow his or her direction with respect to work activities. Subordinates accept this source of power as legitimate, which is why they comply.

-legitimate power: Power that stems from a manager's formal position in an organization and the authority granted by that position.

4B. Although both men and women can practice interactive leadership, research indicates that women's style of leadership is typically different from that of most men and is particularly suited to today's organizations. Ex15.3 shows results for 6 of the 16 dimensions measured by the study.

-one study found that when rated by peers, subordinates, and bosses, female managers scored significantly higher than men on abilities such as motivating others, fostering communication, and listening -also women were rated higher on social and emotional skills, which are crucial for interactive leadership -women outshone men even in masculine qualities besides strategic perspective, which hinders their career advancement despite their exceptional ratings in other leadership dimensions

1F. Managers may have access to formal rewards, such as pay increases or promotions. They also have at their disposal rewards such as praise, attention, and recognition. Managers can use rewards to influence subordinates' behavior.

-reward power: Power that results from the authority to bestow rewards.

2B. Servant Leadership -The concept of servant leadership, first described by Robert Greenleaf in 1970, has gained renewed interest in recent years as companies recover from ethical scandals and compete to attract and retain the best human talent.

-servant leader: A leader who serves others by working to fulfill followers' needs and goals, as well as to achieve the organization's larger mission.

1G. The Situational Model of Leadership -The situational model of leadership is an interesting extension of the behavioral theories summarized in the leadership grid (see Exhibit 15.6) -This approach focuses a great deal of attention on the characteristics of followers in determining appropriate leadership behavior. The point of the situational model is that subordinates vary in readiness, which is determined by the degree of willingness and ability that a subordinate demonstrates while performing a specific task.

-situational model: A leadership model that links the leader's behavioral style with the readiness level of followers.

3B. To be authentic means being real, staying true to one's values and beliefs, and acting based on one's true self rather than emulating what others do.

Authentic leaders inspire trust and commitment because they respect diverse viewpoints, encourage collaboration, and help others learn, grow, and develop as leaders. Exhibit 15.2 outlines the key characteristics of authentic leaders, and each is discussed below.

1E. Ohio State researchers identified two major behaviors on leadership they called consideration and initiating structure. -Consideration: Describes the extent to which a leader is sensitive to subordinates, respects their ideas and feelings, and establishes mutual trust. -Initiating structure: Describes the extent to which a leader is task oriented and directs subordinates' work activities toward goal accomplishment.

Consideration falls in the category of people-oriented behavior and is the extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust Initiating structure is the degree of task behavior; that is, the extent to which the leader is task-oriented and directs subordinate work activities toward goal attainment. Studies suggest that effective leaders may be high on consideration and low on initiating structure or low on consideration and high on initiating structure, depending on the situation

1G. "Willingness" refers to a combination of confidence, commitment, and motivation, and a follower may be high or low on any of the three variables. -"Ability" refers to the amount of knowledge, experience, and demonstrated skill that a subordinate brings to the task.

Effective leaders adapt their style according to the readiness level of the people they are managing. People low in readiness—because of little ability or training or insecurity—need a different leadership style than those who are high in readiness and have good ability, skills, confidence, and willingness to work.

D. Recently, in addition to personality traits, physical, social, and work-related characteristics of leaders have been studied.

Exhibit 15.5 summarizes the physical, social, and personal leadership characteristics that have received the greatest research support. However, these characteristics do not stand alone. The appropriateness of a trait or set of traits depends on the leadership situation.

I. The passive follower exhibits neither critical, independent thinking nor active participation. Being passive and uncritical, these people show neither initiative nor a sense of responsibility. Their activity is limited to what they are told to do, and they accomplish things only with a great deal of supervision. -Passive followers leave the thinking to the boss. Often, this style is the result of a micromanaging boss who encourages passive behavior. -People learn that to show initiative, accept responsibility, or think creatively is not rewarded, and may even be punished by the boss, so they grow increasingly passive.

The effective follower is both a critical, independent thinker and active in the organization. Effective followers behave the same toward everyone, regardless of their position in the organization. They develop an equitable relationship with their leaders and do not try to avoid risk or conflict. These people are capable of self-management, they discern strengths and weaknesses in themselves and their bosses, they are committed to something bigger than themselves, and they work toward competency, solutions, and positive impact.

B. The concept of leadership evolves as the needs of organizations change. That is, the environmental context in which leadership is practiced influences which approach might be most effective, as well as what kinds of leaders are most admired by society.

The technology, economic conditions, labor conditions, and social and cultural mores of the times all play a role. A significant influence on leadership styles in recent years is the turbulence and uncertainty of the environment. Ethical and economic difficulties, corporate governance concerns, globalization, changes in technology, new ways of working, shifting employee expectations, and significant social transitions have contributed to a shift in how we think about and practice leadership. Four approaches that are in tune with leadership for today's turbulent times are Level 5 leadership, servant leadership, authentic leadership, and interactive leadership, which has been associated with women's style of leading.

3B. a. Authentic leaders pursue their purpose with passion. Leaders who lead without a purpose can fall prey to greed and the desires of the ego. When leaders demonstrate a high level of passion and commitment to a purpose, they inspire commitment from followers.

b. Authentic leaders practice solid values. Authentic leaders have values that are shaped by their personal beliefs, and they stay true to them even under pressure. People come to know what the leader stands for, which inspires trust. c. Authentic leaders lead with their hearts as well as their heads. All leaders sometimes have to make tough choices, but authentic leaders maintain a compassion for others as well as the courage to make difficult decisions....

3B. d. Authentic leaders establish connected relationships. Authentic leaders build positive and enduring relationships, which makes followers want to do their best. In addition, authentic leaders surround themselves with good people and work to help others grow and develop.

e. Authentic leaders demonstrate self-discipline. A high degree of self-control and self-discipline keeps leaders from taking excessive or unethical risks that could harm others and the organization. When authentic leaders make mistakes, they openly admit them.

A. Among all the ideas and writings about leadership, three aspects stand out:

people, influence, and goals

1B. Level 5 leaders like Sir Terry Leahy and Qi Lu are extremely ambitious for their companies rather than for themselves. This attitude becomes highly evident in the area of succession planning.

they also develop a solid corps of leaders throughout the organization so that when they leave, the company can continue to thrive and grow even stronger. Egocentric leaders, by contrast, often set their successors up for failure because it will be a testament to their own greatness if the company doesn't perform well without them. Rather than building an organization around "a genius with a thousand helpers," Level 5 leaders want everyone to develop to their fullest potential.