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    PowerPoint slides by

    Susan A. Peterson, Scottsdale Community College

    PowerPoint slides by

    Susan A. Peterson, Scottsdale Community College

    Chapter 9:

    Leadership

    Chapter 9:

    Leadership

    m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r

    m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r

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    2 2008 Prentice-Hall Business Publishing

    Learning ObjectivesLearning Objectives

    After studying this chapter, you should be able to:

    Define leadership and be able to discuss its

    significance in organizationsCompare managing and leading and differentiate

    between them

    Analyze a leaders sources of power and issues in

    using power effectively

    Describe and contrast the roles of the leader,

    followers, and the situation in the overall leadership

    process

    After studying this chapter, you should be able to:

    Define leadership and be able to discuss its

    significance in organizations

    Compare managing and leading and differentiate

    between them

    Analyze a leaders sources of power and issues in

    using power effectively

    Describe and contrast the roles of the leader,

    followers, and the situation in the overall leadership

    process

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    3 2008 Prentice-Hall Business Publishing

    Learning ObjectivesLearning Objectives

    Discuss the extent to which national cultures

    create differences in effective leadership

    behaviors from one country to another

    Explain the conditions that can substitute for, or

    neutralize, effective leadership

    Plan how to improve your own leadership

    capabilities

    Discuss the extent to which national cultures

    create differences in effective leadership

    behaviors from one country to another

    Explain the conditions that can substitute for, or

    neutralize, effective leadership

    Plan how to improve your own leadership

    capabilities

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    4 2008 Prentice-Hall Business Publishing

    What is Leadership?What is Leadership?

    Organizational leadership

    Social influence process

    Attempts to influence other peoplein attaining some goal

    Leadership behavior:

    Can be shown by anyone

    Is expected of most managers

    Could be demonstrated more

    Organizational leadership

    Social influence process

    Attempts to influence other peoplein attaining some goal

    Leadership behavior:

    Can be shown by anyone

    Is expected of most managers

    Could be demonstrated more

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    5 2008 Prentice-Hall Business Publishing

    What is Leadership?What is Leadership?

    Effective leadership

    Influence that assists an

    organization to meet its goals and

    perform successfully

    Effective leaders:

    Enable people to accomplish more

    than if there had been no suchleadership

    Unlock other peoples potential

    Effective leadership

    Influence that assists an

    organization to meet its goals and

    perform successfully

    Effective leaders:

    Enable people to accomplish more

    than if there had been no suchleadership

    Unlock other peoples potential

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    6 2008 Prentice-Hall Business Publishing

    Leading and Managing: The Same or Different?Leading and Managing: The Same or Different?

    Leaders

    Create vision fororganizations and units

    Promote major changesin goals and procedures

    Set and communicatenew directions

    Inspire subordinates

    Leaders

    Create vision fororganizations and units

    Promote major changesin goals and procedures

    Set and communicatenew directions

    Inspire subordinates

    Managers

    Deal with interpersonal

    conflict

    Plan

    Organize

    Implement goals set by

    others (the leaders)

    Managers

    Deal with interpersonal

    conflict

    Plan

    Organize

    Implement goals set by

    others (the leaders)

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    Leading and Managing: The Same or

    Different?

    Leading and Managing: The Same or

    Different?

    Managing oughtto

    involve most of the

    activities thoughtof as leading

    Organizations need

    their managers to

    incorporateleadership roles

    into their behavior

    Managing oughtto

    involve most of the

    activities thoughtof as leading

    Organizations need

    their managers to

    incorporateleadership roles

    into their behavior

    Managers

    Adapted from Exhibit 9.1

    LeadersLeaders

    and

    Managers

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    Leadership Across Different National

    Cultures

    Leadership Across Different National

    Cultures

    Examples of leader

    attributes universally

    viewed as positive

    Examples of leader

    attributes universally

    viewed as positive

    +

    + Trustworthy

    + Encouraging

    + Honest

    + Decisive

    + Communicative

    + Dependable

    +

    + Trustworthy

    + Encouraging

    + Honest

    + Decisive

    + Communicative

    + Dependable

    Adapted from Exhibit 9.2

    Examples of leader

    attributes

    universally viewed

    as negative

    Examples of leader

    attributes

    universally viewed

    as negative

    -

    - Noncooperative

    - Irritable

    - Dictatorial

    - Ruthless

    - Egocentric

    - Asocial

    -

    - Noncooperative

    - Irritable

    - Dictatorial

    - Ruthless

    - Egocentric

    - Asocial

    Examples of leader

    attributes viewed as

    positive ornegative

    depending on the

    culture

    Examples of leader

    attributes viewed as

    positive ornegative

    depending on the

    culture

    +/-

    +/- Ambitious

    +/- Individualistic

    +/- Cunning

    +/- Cautious

    +/- Class Conscious

    +/- Evasive

    +/-

    +/- Ambitious

    +/- Individualistic

    +/- Cunning

    +/- Cautious

    +/- Class Conscious

    +/- Evasive

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    Leadership and PowerLeadership and Power

    Power

    The capacity or ability toinfluence

    Power can:Lead to greater capacity toinfluence

    Be used to overcome resistance

    Be abused and lead toundesirable consequences

    Produce positive outcomes ifused skillfully

    Power

    The capacity or ability toinfluence

    Power can:Lead to greater capacity toinfluence

    Be used to overcome resistance

    Be abused and lead toundesirable consequences

    Produce positive outcomes ifused skillfully

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    Types of PowerTypes of Power

    Based on a manager's rank in an

    organizational structure and given to the

    manager by superiors

    Based on a manager's rank in an

    organizational structure and given to the

    manager by superiors

    Based on a person's individual

    characteristics; stay with the individualregardless of his or her position in the

    organizational structure

    Based on a person's individual

    characteristics; stay with the individualregardless of his or her position in the

    organizational structure

    Position

    Power

    Position

    Power

    PersonalPower

    PersonalPower

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    Types of PowerTypes of Power

    LegitimateHow much authority does the

    organization give to your position?

    LegitimateHow much authority does the

    organization give to your position?

    RewardAre you able to give others the

    rewards they want?

    RewardAre you able to give others the

    rewards they want?

    CoerciveAre you able to punish others or

    withhold rewards?

    CoerciveAre you able to punish others or

    withhold rewards?

    ExpertDo you have knowledge that othersneed?ExpertDo you have knowledge that othersneed?

    ReferentDo others respect you and want to

    be like you?

    ReferentDo others respect you and want to

    be like you?

    Position

    Power

    Position

    Power

    Personal

    Power

    Personal

    Power

    Adapted from Exhibit 9.3

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    Four Key Issues in Using PowerFour Key Issues in Using Power

    How much power

    should be used?

    How can power

    be put to use?

    Which types of power

    should be used?

    Should power

    be shared?

    Adapted from Exhibit 10.2: Four Key Issues in Using PowerAdapted from Exhibit 9.4

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    Types of Influence TacticsTypes of Influence Tactics

    Rational

    Persuasion

    Rational

    Persuasion

    Uses logical arguments and factual evidence to show a

    proposal or request is feasible and relevant for attaining

    important task objectives

    Uses logical arguments and factual evidence to show a

    proposal or request is feasible and relevant for attaining

    important task objectives

    ApprisingApprisingExplains how carrying out a request or supporting aproposal will benefit the target personally or help

    advance the target persons career

    Explains how carrying out a request or supporting a

    proposal will benefit the target personally or help

    advance the target persons career

    Inspirational

    Appeals

    Inspirational

    Appeals

    Makes an appeal to values and ideals or seeks to

    arouse the target persons emotions to gain

    commitment for a request or proposal

    Makes an appeal to values and ideals or seeks to

    arouse the target persons emotions to gain

    commitment for a request or proposal

    ConsultationConsultation

    Encourages the target to suggest improvements in a

    proposal or to help plan an activity or change for which

    the target persons support and assistance are desired

    Encourages the target to suggest improvements in a

    proposal or to help plan an activity or change for which

    the target persons support and assistance are desired

    Adapted from Exhibit 9.5

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    Types of Influence Tactics (cont.)Types of Influence Tactics (cont.)

    ExchangeExchange

    Offers an incentive, suggests an exchange of favors, or

    indicates willingness to reciprocate at a later time if the

    target will do what the agent requests

    Offers an incentive, suggests an exchange of favors, or

    indicates willingness to reciprocate at a later time if the

    target will do what the agent requests

    CollaborationCollaboration

    Offers to provide relevant resources and assistance if

    the target will carry out a request or approve a proposed

    change

    Offers to provide relevant resources and assistance if

    the target will carry out a request or approve a proposed

    change

    Personal

    Appeals

    Personal

    Appeals

    Asks the target to carry out a request or support a

    proposal out of friendship, or asks for a personal favor

    before saying what it is

    Asks the target to carry out a request or support a

    proposal out of friendship, or asks for a personal favor

    before saying what it is

    IngratiationIngratiation

    Uses praise and flattery before or during an influence

    attempt or expresses confidence in the targets ability

    to carry out a difficult request

    Uses praise and flattery before or during an influence

    attempt or expresses confidence in the targets ability

    to carry out a difficult request

    Adapted from Exhibit 9.5

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    Locus of LeadershipLocus of Leadership

    Three leadership variables:

    The leader

    The situationThe followers

    Locus of leadership:

    Where the threevariables intersect

    Three leadership variables:

    The leader

    The situationThe followers

    Locus of leadership:

    Where the threevariables intersect

    LeaderLeader

    SituationSituationFollowersFollowers

    Locus of

    Leadership

    Adapted from Exhibit 9.6

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    17 2008 Prentice-Hall Business Publishing

    Leaders TraitsLeaders Traits

    Drive

    Achievement, ambition,

    energy, tenacity, initiative

    Drive

    Achievement, ambition,

    energy, tenacity, initiative

    Emotional maturity

    Even tempered, calm under

    stress, unself-centered,

    nondefensive

    Emotional maturity

    Even tempered, calm under

    stress, unself-centered,

    nondefensive

    Self-confidence

    Set high goals for self and others, optimistic about overcoming obstacles

    (if taken to extreme, can lead to arrogance and sense of infallibility)

    Self-confidence

    Set high goals for self and others, optimistic about overcoming obstacles

    (if taken to extreme, can lead to arrogance and sense of infallibility)

    Motivation to Lead

    Desire to influence

    others, comfortable

    using power

    Motivation to Lead

    Desire to influence

    others, comfortable

    using power

    Honesty and Integrity

    Trustworthy, open,

    forthright

    Honesty and Integrity

    Trustworthy, open,

    forthrightLeaderLeader

    Adapted from Exhibit 9.7

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    Charismatic LeadershipCharismatic Leadership

    Charismatic leadership

    Is a strong form of referentpower

    Is based on individualinspirational qualities rather thanformal power

    Generates followers who identifywith charismatic leaders becauseof these exceptional qualities

    Is rare; very few people areconsidered truly charismatic

    Charismatic leadership

    Is a strong form of referentpower

    Is based on individualinspirational qualities rather thanformal power

    Generates followers who identifywith charismatic leaders becauseof these exceptional qualities

    Is rare; very few people areconsidered truly charismatic

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    Attributes of Charismatic LeadersAttributes of Charismatic Leaders

    Adapted from Exhibit 11.10: Attributes of the Charismatic LeaderAdapted from Exhibit 9.8

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    Leaders SkillsLeaders Skills

    TECHNICAL SKILLS

    Specialized knowledge

    TECHNICAL SKILLS

    Specialized knowledge

    INTERPERSONAL SKILLS

    Sensitivity, persuasiveness, empathy

    INTERPERSONAL SKILLS

    Sensitivity, persuasiveness, empathy

    CONCEPTUAL SKILLS

    Logical reasoning, judgment, analytical

    abilities

    CONCEPTUAL SKILLS

    Logical reasoning, judgment, analytical

    abilities

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    Leaders SkillsLeaders Skills

    TECHNICAL SKILLS

    Specialized knowledge

    TECHNICAL SKILLS

    Specialized knowledge

    INTERPERSONAL SKILLS

    Sensitivity, persuasiveness, empathy

    INTERPERSONAL SKILLS

    Sensitivity, persuasiveness, empathy

    CONCEPTUAL SKILLS

    Logical reasoning, judgment, analytical

    abilities

    CONCEPTUAL SKILLS

    Logical reasoning, judgment, analytical

    abilities

    EMOTIONAL INTELLIGENCESelf-awareness, self-regulation, motivation,

    empathy and social skill

    EMOTIONAL INTELLIGENCESelf-awareness, self-regulation, motivation,

    empathy and social skill

    SOCIAL INTELLIGENCE

    Ability to read other people

    SOCIAL INTELLIGENCE

    Ability to read other people

    Adapted from Exhibit 9.9

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    22 2008 Prentice-Hall Business Publishing

    Leaders BehaviorsLeaders Behaviors

    Task Behaviors

    Specifies roles andtasks

    Schedules workSets performancestandards

    Develops procedures

    Task Behaviors

    Specifies roles andtasks

    Schedules workSets performancestandards

    Develops procedures

    People Behaviors

    Is friendly

    Is supportive

    Shows trust andconfidence in subordinates

    Shows concern forsubordinates welfare

    Gives recognition to

    subordinates foraccomplishments

    People Behaviors

    Is friendly

    Is supportive

    Shows trust andconfidence in subordinates

    Shows concern forsubordinates welfare

    Gives recognition to

    subordinates foraccomplishments

    Adapted from Exhibit 9.10

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    23 2008 Prentice-Hall Business Publishing

    Approaches Based on Leaders BehaviorApproaches Based on Leaders Behavior

    BLAKE & MOUTON:

    MANAGERIAL GRID

    Best managers are both

    task- and people-oriented

    BLAKE & MOUTON:

    MANAGERIAL GRID

    Best managers are both

    task- and people-oriented

    TRANSFORMATIONAL LEADERSHIP

    Leaders who inspire followers

    to make major changes or to achieve

    at very high levels

    TRANSFORMATIONAL LEADERSHIP

    Leaders who inspire followers

    to make major changes or to achieve

    at very high levels

    TRANSACTIONAL LEADERSHIP

    Emphasizes the exchange of rewards

    for followers compliance

    TRANSACTIONAL LEADERSHIP

    Emphasizes the exchange of rewards

    for followers compliance

    AUTHENTIC LEADERSHIP

    Model self-awareness and regulation

    and motivate followers to act

    more authentically too

    AUTHENTIC LEADERSHIP

    Model self-awareness and regulation

    and motivate followers to act

    more authentically too

    Leadership ApproachesLeadership Approaches

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    24 2008 Prentice-Hall Business Publishing

    Managerial GridManagerial Grid

    Focuses on two

    leadership

    behaviors: concern

    for people and

    concern for results

    Leaders can be

    - High in both

    - Low in both

    - In the middle on

    both

    - High in one, low

    in the other

    Focuses on twoleadership

    behaviors: concern

    for people and

    concern for results

    Leaders can be

    - High in both

    - Low in both

    - In the middle on

    both

    - High in one, low

    in the other Low High

    Low

    High

    Concern for Results

    Concer

    n

    for

    People

    9

    8

    7

    6

    5

    4

    3

    2

    1

    1 2 3 4 5 6 7 8 9

    Good

    Leaders

    Poor

    Leaders

    MediocreLeaders

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    25 2008 Prentice-Hall Business Publishing

    Transformational LeadershipTransformational Leadership

    Transformational leaders

    Empower and coach followers

    Motivate followers to:- Ignore self-interest

    - Work for the larger good of

    the organization

    - Achieve significant

    accomplishments

    - Make major changes

    Transformational leaders

    Empower and coach followers

    Motivate followers to:- Ignore self-interest

    - Work for the larger good of

    the organization

    - Achieve significant

    accomplishments

    - Make major changes

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    Transactional LeadershipTransactional Leadership

    Transactional leadership

    Is more passive

    Emphasizes exchange orrewards or benefits for

    compliance with leaders

    requests

    Appeals to followers self-interests to motivate their

    performance

    Transactional leadership

    Is more passive

    Emphasizes exchange orrewards or benefits for

    compliance with leaders

    requests

    Appeals to followers self-interests to motivate their

    performance

    fT f ti l V T ti l

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    27 2008 Prentice-Hall Business PublishingAdapted from Exhibit 11.11: Transformation versus Transactional Leadership

    Transformational

    Leadership

    Transformational

    Leadership

    Transactional

    Leadership

    Transactional

    Leadership

    Leader gains

    subordinatescompliance by:

    Leader gains

    subordinatescompliance by:

    Appeals focus on:Appeals focus on:

    Type of planned

    change:

    Type of planned

    change:

    Transformational Versus Transactional

    Leadership

    Transformational Versus Transactional

    Leadership

    Inspiring,empowering, and

    coaching followers

    Inspiring,empowering, and

    coaching followers

    Exchange ofrewards and

    benefits

    Exchange ofrewards and

    benefits

    Organizational andcommon good

    interests

    Organizational andcommon good

    interestsSelf-interestSelf-interest

    Majororganizational

    change

    Majororganizational

    changeRoutine changesRoutine changes

    Adapted from Exhibit 9.11

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    Guidelines for Transformational LeadershipGuidelines for Transformational Leadership

    Develop a clear and appealing vision

    Develop a strategy for attaining thevision

    Articulate and promote the vision

    Act confident and optimisticExpress confidence in followers

    Use early success in small steps tobuild confidence

    Celebrate successesUse dramatic, symbolic actions toemphasize key values

    Lead by example

    Develop a clear and appealing vision

    Develop a strategy for attaining thevision

    Articulate and promote the vision

    Act confident and optimisticExpress confidence in followers

    Use early success in small steps tobuild confidence

    Celebrate successesUse dramatic, symbolic actions toemphasize key values

    Lead by example

    Adapted from Exhibit 9.12

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    Followers BehaviorsFollowers Behaviors

    Important points about followers:

    They may be as informed as

    leaders

    They may share power with

    leaders

    Usually have lower formal

    authority, though power

    differences have decreased

    They affect the leaders style and

    success

    Important points about followers:

    They may be as informed as

    leaders

    They may share power with

    leaders

    Usually have lower formal

    authority, though power

    differences have decreased

    They affect the leaders style and

    success

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    Approaches Based on Followers BehaviorApproaches Based on Followers Behavior

    HERSEY AND BLANCHARD:

    SITUATIONAL LEADERSHIP MODEL

    Focuses followers readiness to

    engage in learning new tasks

    HERSEY AND BLANCHARD:

    SITUATIONAL LEADERSHIP MODEL

    Focuses followers readiness to

    engage in learning new tasks

    LEADER-MEMBER

    EXCHANGE THEORY

    Focuses on types of relationships

    between a leader and a follower

    LEADER-MEMBER

    EXCHANGE THEORY

    Focuses on types of relationships

    between a leader and a follower

    Leadership ApproachesLeadership Approaches

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    31 2008 Prentice-Hall Business Publishing

    Situational Leadership ModelSituational Leadership Model

    Leadership behaviors depend on

    readiness of followers

    - Ability in a specific task

    - Motivation to undertake the new

    task

    Leadership behaviors

    - Supportiveness (peopleorientation)

    - Directiveness (task orientation)

    Leadership behaviors depend on

    readiness of followers

    - Ability in a specific task

    - Motivation to undertake the new

    task

    Leadership behaviors

    - Supportiveness (peopleorientation)

    - Directiveness (task orientation)

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    Leader-Member Exchange TheoryLeader-Member Exchange Theory

    Quality of the leader-member

    relationship can influence

    behavior of subordinates

    Leader should build strong,

    mutually beneficial relationship

    Relationship goes through

    stages:- Stranger- Acquaintance- Maturity

    Quality of the leader-member

    relationship can influence

    behavior of subordinates

    Leader should build strong,

    mutually beneficial relationship

    Relationship goes through

    stages:- Stranger- Acquaintance- Maturity

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    Role-Implementation

    High

    Almost

    Unlimited

    Team

    Leader-Member RelationshipsLeader-Member Relationships

    Role-Making

    Medium

    Limited

    Role-Finding

    Low

    None

    Self

    Relationship-building phase

    Quality of leader-

    member exchange

    Amounts of

    reciprocal Influence

    Focus of interest

    Stranger

    Relationship

    characteristics

    Relationship

    characteristicsRelationship

    stage

    Relationship

    stage

    Maturity

    Time

    Acquaintance

    Adapted from Exhibit 9.13

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    The SituationThe Situation

    Situational variables affecting leadership are:

    Tasks to be performed- If task changes, leadership style changes

    - Unstructured task done by experts supportiveleadership

    - Structured task done by inexperienced people directive leadership

    Organizational context- Immediate work group + larger organization- Organizational culture dictates leadership style

    Situational variables affecting leadership are:

    Tasks to be performed- If task changes, leadership style changes

    - Unstructured task done by experts supportiveleadership

    - Structured task done by inexperienced peopledirective leadership

    Organizational context- Immediate work group + larger organization- Organizational culture dictates leadership style

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    Approaches Based on SituationApproaches Based on Situation

    FIEDLER: CONTINTENCY

    LEADERSHIP MODEL

    Focuses on type of leaderandthe

    degree of favorability of the situation

    FIEDLER: CONTINTENCY

    LEADERSHIP MODEL

    Focuses on type of leaderandthe

    degree of favorability of the situation

    HOUSE: PATH-GOAL THEORY

    Use leadership approach based on

    both subordinate skills andsituation

    HOUSE: PATH-GOAL THEORY

    Use leadership approach based on

    both subordinate skills andsituation

    Leadership ApproachesLeadership Approaches

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    Leadership Contingency TheoryLeadership Contingency Theory

    Premise: Leadership effectiveness depends on

    1) favorability of situation and 2) type of leader

    Premise: Leadership effectiveness depends on

    1) favorability of situation and 2) type of leader

    FAVORABLE SITUATION

    Good subordinate relationships Highly structured task High amount of position power

    UNFAVORABLE SITUATION

    Poor subordinate relationships Unstructured task Leader lacks position power

    TASK-ORIENTED LEADERS

    Do best when the situation is either: Highly favorable, or Highly unfavorable

    PEOPLE-ORIENTED LEADERS

    Do best when the situation is either: Moderately favorable, or Moderately unfavorable

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    Leaders job is to increase subordinate satisfactionand effort

    Assumes that:

    - One leadership approach will work better in sometask situations than others

    - Leaders can modify their styles to suit the situation

    Two basic leadership behaviors:

    - Supportive

    - Directive

    Leaders job is to increase subordinate satisfactionand effort

    Assumes that:

    - One leadership approach will work better in sometask situations than others

    - Leaders can modify their styles to suit the situation

    Two basic leadership behaviors:

    - Supportive

    - Directive

    Path-Goal TheoryPath-Goal Theory

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    Prentice-Hall Business Publishing

    The task is:

    Frustrating, boring, stressful,

    structured, and routine

    Subordinates are:

    Highly experienced and

    competent

    The task is:

    Interesting but ambiguous,

    nonstressful, unstructured,varied

    Subordinates are:

    inexperienced

    Directive

    Leadership Style

    (Task oriented)

    Supportive

    Leadership Style

    (Person oriented)

    Goal

    (i.e., increased

    performance)

    IF

    AND

    IF

    AND

    Path-Goal TheoryPath-Goal Theory

    Adapted from Exhibit 9.14

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    Substitutes for LeadershipSubstitutes for Leadership

    Ad t d f E hibit 5 2 F t f M l I t it

    Direct Feedback

    from Task

    Direct Feedback

    from Task

    Cohesive work

    group

    Cohesive work

    group

    Advisory or

    Staff Support

    Advisory or

    Staff Support

    Intrinsically

    Satisfying Task

    Intrinsically

    Satisfying Task

    Ability,

    Experience,Training

    Ability,

    Experience,Training

    Professional

    Orientation

    Professional

    Orientation

    Substitutes

    for Leadership

    Substitutes

    for Leadership

    Adapted from Exhibit 9.14