Introduction to Leadership Concepts Homework Questions

144 CHAPTER 4 • LEADERSHIP BEHAVIORS, ATTITUDES, AND STYLES

39. Anders Skogstad, et al., "The Destructiveness of 47. "Can Entrepreneurship Be Taught?" The Wall Laissez-Faire Leadership Behavior," Journal of Street Journal, March 19, 2012, p. R4 . Occupational Health Psychology, no . 1, 2007, 48. Judy Rosener, "Ways Women Lead," Harvard pp. 80-92. Business Review, November-December 1990,

40. "GM Boss-to-Be Has Hard-Nosed Reputation," pp. 119-125. Detroit Free Press, August 14, 2010. 49. Research reported in Michael Schrage, "Why

41. Robert R. Blake and Anne Adams Mccanse, Can't a Woman Be More Like a Man?" Fortune, Leadership Dilemmas-Grid Solutions August 16, 1999, p . 184. (Houston, Tex.: Gulf Publishing, 1991), http:// 50. Much of the research on this topic is www.gridinternational.com/gridtheory.htrnl, summarized in Mary Crawford, Talking 2007. Difference: On Gender and Language (London:

42. Alan Hughes, "The Maestro of Finance," Black Sage Publications, 1995). Enterprise, September 2013, p. 63. 51. Claartje J. Vinkenburg, Marloes L. van Engen,

43. Andrew J. DuBrin, Proactive Personality and Alice H. Eagly, and Mary C. Johannesen- Behavior for Individual and Organizational Schmidt, "An Exploration of Stereotypical Productivity (Cheltenham, UK; Northampton, Beliefs About Leadership Styles: Is MA: Edward Elgar, 2014), pp. 118-122; J. Transformational Leadership a Route to Robert Baum and Edwin A. Locke, "The Women's Promotion?" The Leadership Relationship of Entrepreneurial Traits, Skill, Quarterly, February 2011, pp. 10-21. and Motivation to Subsequent Venture 52. Daniel Goleman, "Leadership That Gets Growth," Journal of Applied Psychology, August Results," Harvard Business Review , March- 2004, pp. 587-598; Gayle Sato Stodder, April 2000, pp. 78-90. "Goodbye Mom & Pop: The Neighborhood's 53. Felix Brodbeck, Michael Frese, and Mansour Not Big Enough for Today's Entrepreneur. Havidan, "Leadership Made in Germany: Low Only the World Will Do," Entrepreneur, May on Compassion, High on Performance,'" l999, pp. 145-,-151. Academy of Management Executive, February

44. Melissa S. Cardon, Joakim Wincent, Jagdip 2002, pp. 16---3 . Singh, and Mateja Dronovsek, "The Nature and 54. David J. Henderson, Robert C. Liden, Brian C. Expe1ience of Entrepreneurial Passi011," Glibkowski, and Anjali Chaudhry, "LMX Academy of Management Review, July 2009, Differentiation: A Multilevel Review and pp. 511-532. The Roddick quote is also from Examination of Its Antecedents and this source, p. 511. Outcomes," The Leadership Quarterly, August

45. Leon C. Prieto, "Proactive Personality and 2009,pp. 517-534. Entrepreneurial Leadership: Exploring the 55. Ralph M. Stogdill, "Historical Trends in Moderating Role of Organizational Leadership Theory and Research," Journal of Jdentification and Political Skill," Academy Contemporary Business, Autumn 1974, p. 7. of Entrepreneurship Journal, July l. 2010, 56. Christopher Hann, "We're All in Thi , pp. 1- 16. Together," Entrepreneur, March 2013, p. 56.

46. "The World's 50 Most Innovative Companies, " 57. "Directive Management or Not?" Working Fast Cornpany, March 2010, p. 67. SMART, December 1992, p. 3.

LEARNING OBJECTIVES After studying this chapter and doing the exercises, you

should be able to

Describe how the situation influences the choice

of leadership objectives. Present an overview of

the contingency theory of leadership effectiveness.

Explain the path-goal theory of leadership

effectiveness.

• Explain Situational Leadership® II (SUI) .

CHAPTER OUTLINE Situational Influences on Effective Leadership Behavior

Fiedler's Contingency Theory of Leadership Effectiveness

Measuring Leadership Style: The Least Preferred Coworker (LPC) Scale

Measuring the Leadership Situation Overall Findings

Making the Situation More Favorable for the Leader Evaluation of Fiedler's Contingency Theory

The Path-Goal Theory of Leadership Effectiveness

Matching the Leadership Style to the Situation Steps Leaders Can Take to Influence Performance and

Satisfaction

Situational Leadershipll II (SUI)

Basics of SU 1 Eva luation of SUI

• Use the normative decision model to determine the

most appropriate decision-making style in a given

situation.

• Explain the basics of leadership during a crisis.

• Explain how evidence-based leadership can contribute

to contingency and situational leadership.

The Normative Decision Model

Decision-Making Styles

Contingency Factors and Application of the Model

Leader-Member Exchange (LMX) and Contingency Theory

Leadership During a Crisis

Evidence-Based leadership for the Contingency and Situational Approach

Summary

Key Terms

Guidelines for Action and Skill Development

Leadership Case Problem A

Leadership Case Problem B

Notes

145

146 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

March 2013, Michigan governor Rick Snyder

appointed Kevyn Orr as emergency manager of Detroit

for an eighteen-month term to help resolve the city's

overwhelming problems. Detroit had a history of political

corruption, bribery, and sex scandals. The city's population

shrank from 1.8 million in 1950 to 700,000 in 2013.

Detroit led the United States in violent crime. Many parts

of the outer city looked to be bombed out, with approxi­

mately 66,000 vacant lots, and 78,000 abandoned or dis­

tressed buildings, many of which were used as drug

houses. A four-bedroom house in the inner city could be

purchased for $7,000. City debt had reached $18 billion.

Orr, a graduate of the University of Michigan Law

School, had been a bankruptcy attorney for many years

including working on Chrysler's bankruptcy in 2009. Orr

admitted he had dictatorial powers as an emergency man­

ager but he said he was going to be a benevolent dictator.

Five months after Orr's appointment, Detroit filed for bank­

ruptcy, and he regarded the decision as the beginning of

the rebirth of the beleaguered city. He talked about other cities, such as Miami, Washington D.C., that rebounded

trom adversity in major sections of the metropolitan areas.

Orr exuded optimism and energy as he talked about his

plans to work Detroit out of bankruptcy before his term

expired. He admitted that Detroit had horrendous problems,

as reflected in his quip, "You can't have 20-year-old oak

trees growing through the roofs of houses and not notice

that there's some blight.· Yet Orr also pointed to pockets

of optimism about the city. He referred to people in their 20s who are launching high-tech firms. restaurants, and

rehabbing abandoned or blighted buildings. Venture capital­

ists and private foundations were investing billions in down­

town . Dan Gilbert. the chairman of Quicken Loans, moved

company headquarters to Detroit in 2010. He also

attracted eighty-five other companies to downtown through

a program that provides office space for startups.

I n A key part of Orr's strategy for revitalization was the

Detroit Future City plan created by public officials, commu­

nity groups, and philanthropists to undo blight, and improve

lighting and public safety in six demonstration districts. The

hope is that improvements in one neighborhood become

contagious. Despite the city's crippling debt, Orr proposed

a $1.25 billion investment in the city over the next decade.

At the same time, he is trimming costs through such

measures as privatizing refuse collection and negotiating

for lower pension payments to city retirees.

Although candid about the dreadful corruption and mis­

judgments of the past, Orr points his stakeholders toward

a brighter future. He says that Detroit has been given a

second chance that should not be wasted. "This is our

opportunity for a great All-American city to show what it

really is," he says. 1

The story about the emergency manager of a troubled

city illustrates an increasingly important leadership task:

leading people through a crisis. Leadership of this type is

a special case of the general subject of this chapter­

adjusting one's approach to the situation. Contingency

and situational leadership further expand the study of

leadership styles by adding more specific guidelines

about whicl1 style to use under which circumstance. In this chapter, we present an overview of the situa­

tional perspective on leadership. We then summarize four classic contingency theories of leadership: Fiedler's

contingency theory, path-goal theory, the situational lead­

ership model, and the normative decision model. We also

explain how a more contemporary theory. the leader- ­

member exchange, contributes to understanding the

contingency perspective. In addition. we describe crisis leadership because leading others through a crisis has

become a frequent challenge in recent years . Finally, we

describe how evidence-based leadership and management

contribute to the contingency approach.

Situational Influences on Effective Leadership Behavior

The situation can influence the leadership behavior or style a leader empha­ sizes. The essence of a contingency approach to leadership is that leaders are most effective when they make their behavior contingent on situational forces , including group member characteristics. Both the internal and the

SITUATIONAL INFLUENCES ON EFFECTIVE LEADERSHIP BEHAVIOR 147

external environment have a significant impact on leader effectiveness. For example, the quality of the workforce and the competitiveness of the envi­ ronment can influence which behaviors the leader emphasizes. A manager who supervises competent employees might be able to practice consensus leadership readily. And a manager who faces a competitive environment might find it easier to align people to pursue a new vision.

A useful perspective on implementing contingency leadership is that the manager must be flexible enough to avoid clinging to old ideas that no longer tit the current circumstances.2 Being stubborn about what will work in a given situation and clinging to old ideas can result in ineffective leadership. The effective leader adapts to changing circumstances. For example, at one point, offering employees generous benefits might not have been motivational. In reality, with many employers having cut back on benefits such as health insur­ ance, these benefits can actually be helpful in attracting and retaining workers.

As mentioned in several places in this textbook, the leader needs to take into account the major situational variable of organizational culture when choosing which approach to leadership will lead to favorable outcomes. A command-and-control leadership style may not be effective in a company with a collaborative, friendly organizational culture. If the culture seems at odds with what a highly placed leader wants to accomplish, the leader may attempt to change the culture.

Victor H. Vroom and Arthur G. Jago have identified three conclusions about the role of situations in leadership, and these findings support the model of leadership presented in Figure 1-2, Chapter I. The conclusions are geared to support the idea that leadership involves motivating others to work collaboratively in the pursuit of a common goal. 3 We also ndd a fourth conclusion, focused on the organization structure.

1. Organizational effectiveness is affected by situational factors not under leader control. The leader might be able lo influence the situation, yet some situational factors are beyond the leader's complete control. The manager of a prosperous, independent coffee shop might be running her business and leading her employees successfully for ten years. Suddenly, a Starbucks opens across the street, thereby seriously affecting her ability to lead a successful enterprise. She might be smart enough to have a contingency plan of offering services Starbucks cannot equal, yet staying in business will be a struggle.

2. Situations shape how leaders behave. Contingency theorists believe that forces in the situation are three times as strong as the leader's personal characteristics in shaping his or her behavior. How the leader behaves is therefore substantially influenced by environmental forces. In the face of competition from Starbucks, our coffee shop owner might now act with a greater sense of urgency, be much more directive in telling her workers what to do, and become much Jess warm and fiiendly. Her normal level of enthusiasm might also diminish.

3. Situations influence the consequences of leader behavior. Popular books about management and leadership assume that certain types of

148 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

leader behavior work in every situation. Situational theorists disagree strongly with this position. Instead, a specific type of leadership behavior might have different outcomes in different situations. The leader behavior of empowerment illustrates this idea. Perhaps empowerment will work for our coffee shop owner because she has a group of dedicated workers who want their jobs and her enterprise to endure. However, empowering incom­ petent workers with a weak work ethic is likely to backfire because the workers will most likely resist additional responsibility.

4. The type of organization influences which leadership approach is best. Henry Mintzberg has identified the form of organization as a key situ­ ational variable influencing which approach to leadership is likely to be most effective. Two examples will suffice here. In an entrepreneurial organi­ zation , the key leader will engage in considerable doing and dealing as well as creating visions. In a machine organization, or classic bureaucracy, the leader will engage in a considerable amount of controlling.

4

In this chapter, as well as throughout the book, possible situational factors are mentioned that should be taken into consideration in leading others. A general approach to being a~are at all these factors is for the leader to be mindful of events in the environment. If you are mindful, you are sensitive to what is happening around you . According to stress researcher Jon Kabat­ Zinn, you leam to pay attention on purpose to the present moment, in a non­ judgmental way, to whatever ar ises in your leadership situalion.

5

Fiedler's Contingency Theory of Leadership Effectiveness

Fred E . Fiedler developed a widely researched and quoted contingency model more than forty years ago that holds that the best style of leadership is determined by the situation in which the leader is working.

6 Here we

examine how the style and situation are evaluated, the overall findings of Lhc theory, and how leaders can modify situations to their advantage. Although this theory is no longer the subject of new research, it still provides a few useful suggestions for today's leader.

Measuring Leadership Style: The Least Preferred Coworker (LPC) Scale Fiedler's theory classifies a manager's leadership style as relationship moti­ vated or task motivated. Style is therefore based on the extent to which the leader is relationship motivated or task motivated. According to Fiedler, leadership style is a relatively permanent aspect of behavior and thus diffi­ cult to modify. Leaders are regarded as having a consistent style of task o r relations orientation. Fiedler reasons that once leaders understand their particular leadership style, they should work in situations that match that style. Similarly, the organization should help managers match leadership styles and situations.

FIEDLER'S CONTINGENCY THEORY OF LEADERSHIP EFFECTIVENESS 149

The least preferred coworker (LPC) scale measures the degree to which a leader describes favorably or unfavorably his or her LPC-that is, an employee with whom he or she could work the least well. A leader who describes the LPC in relatively favorable terms tends to be relationship motivated. In contrast , a person who describes this coworker in an unfavor­ able manner tends to be task motivated. The coworker is described by rating him or her on a series of eighteen polar-opposite adjectives, such as the following:

Pleasant 8 7 6 5 4 3 2 l Unpleasant

Tense 1 2 3 4 5 6 7 Relaxed

The leadership style measure presented in Leadership Self-Assessment Quiz 4-1 is a more direct and less abstract way of measuring your style. To repeat, the general idea of the LPC approach is that if you have a positive, charitable attitude toward people you had a difficult time working with, you are probably relationship oriented. In contrast, if you take a dim view of people who gave you a hard time, you are probably task oriented. The message here is that a relationship-oriented leader should be able to work well with a variety of personalities.

Measuring the Leadership Situation

Fiecller's contingency theory classifies situations as high, moderate, and low control. The more control that the leader exercises, the more favorable the situation is for the leader. The control classifications are determined by rat­ ing the situation on its three dimensions: (I) leader-member relations mea­ sure how well the group and the leader get along; (2) task structure measures how clearly the procedures, goals, and evaluation of the job are defined; and (3) position power measures the leader's authority to hire, fire, discipline, and grant salary increases to group members.

Leader-member relations contribute as much to situation favorability as do task structure and position power combined. The leader therefore has the most control in a situation in which relationships with members arc the best.

Overall Findings

The key points of Fiedler's contingency theory are summarized and simpli­ lkd in Figure 5-1. The original theory is much more complex. Leadership effectiveness depends on matching leaders to situations in which they can exercise more control. A leader should therefore be placed in a situation that is favorable to, or matches, his or her style. If this cannot be accom­ plished, the situation might be modified to match the leader's style by manipulating one or more of the three following situational variables.

The· theory states that task-motivated leaders perform the best in situa­ tions of both high control and low control. Relationship-motivated leaders

150 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

Task-motivated leaders Relationship-motivated Task-motivated leaders perform best when they have leaders perform best when perform best when they the most control (highly they have moderate control have low control (highly favorable) . (moderately favorable) . unfavorable) .

High Moderate Low

AMOUNT OF SITUATIONAL CONTROL BY LEADER 1-------1►

a . Leader-member relations Both favorable and a. Leader-member relations are good. unfavorable factors are are poor.

present. b. Task is well structured. b. Task is poorly structu red. c. Leader has high position c. Leader has low position

power. power.

FIGURE 5-1 Summ ary of Findings from Fiedler's Contingency Theory.

perform the best in situations of moderate control. The results of many stu dies indicated that the relationship-motivated leader outperformed the task-motivated leader in three of the eight situations but that the reverse was true in the other five situations. The eight situations result from each of the three situational variables being classified in one of two ways (good

r poor, high or low, or strong or weak), as shown in Figure 5-2. Task-motivated leaders perform better in situations that are highly favor­

able for exercising control because they do not have to be concerned with the task. Instead, they can work on relationships. In moderately favorable situations, the relationship-motivated leader achieves higher group produc­ tivity because he or she can work on relationships and not get involved in micromanaging. In very-low-control situations, the task-motivated leader is able to structure and make sense out of confusion, whereas the relationship-motivated leader wants to give emotional support to group members or call a meeting.

Making the Situation More Favorable for the Leader

A practical implication of contingency theory is that leaders should modify situations to match their leadership style, thereby enhancing their chances of being effective. Consider a group of leaders who are task motivated and

FIGURE 5-2 The Eight Differe nt Situations in Fiedte(s Contingency Theory .

THE PATH -GOAL THEORY OF LEADERSHIP EFFECTIVENESS 151

decide that they n eed to exercise more control over the situation to achieve higher work unit prod{ictivity. To increase control over the situation, they can do one or more of the following:

• Improve leader-member relations through displaying an interest in the personal welfare of group members, having meals with them, actively listening to their concerns, telling anecdotes, and in general being a nice person.

• Increase task structure by engaging in behaviors related to initiating structure, such as being more specific about expectations, providing Jeadlines, showing samples of acceptable work, and providing written instn1ctions.

• Exercise more position power by requesting more formal authority from higher management. For example, the leader might let it be known that he or she has the authority to grant bonuses and make strong recom­ mendations for promotion.

Now imagine a relationship-motivated leader who wants to create a situa­ tion of moderate favorability so that his or her interests in being n eeded by the group could be satisfied. The leader might give the group tasks of low structure and deemphasize his or her position power.

Evaluation of Fiedler's Contingency Theory

A major contribu tion of Fiedler's work is that it has prompted others to co n­ duct studies about the contingency nature of leaders hip. Fiedler's theory has been one of the most widely researched theories in industrial/organizational psychology, and at one time it was used extensively as the basis for leader­ ship training programs. The model has also alert~d leaders to the impor­ tance of sizing up the situation to gain control. At the same Lime, Fielder pioneered in taking into account both traits and the situation to better understand leadership. 7

Despite its potential advantages, however, the contingency theory is too complicated to have much of an impact on most leaders. A major problem centers on matching the situation to the leader. ln most situations, the amount of control the leader exercises varies from time to time. For exam­ plt>, if a relationship-motivated leader wert> to find the situation becoming too favorable for exercising control, it is doubtful that he or she would be transferred to a less favorable situation or attempt to make the s ituation less favorable .

The Path-Goal Theory of Leadership Effectiveness

The path-goal theory of leadership effectiveness, as developed by Robert House, specifies what a leader must do to achieve high productivity and morale in a given situation. In general, a leader attempts to clarify the path to a goal for a group member so that the group member receives personal

Situational Characteristics

Situation (Octant) Number ➔ 1

Leader-Member Relations Good

Task Structure High

Position Power Strong

2

Good

High

Weak

43

Good Good

Low Low

Strong Weak

5

Poor

High

Strong

6 7

Poor Poor

LowHi gh

Weak Strong

8

Poor

Low

Weak

152 CHAPTER 5 • CONTINGENCY AND SITUATIONAL L EA DE RSH IP

payoffs. At the same time, this group member's job satisfaction and perfor­ mance increase. 8 Similar to the expectancy theory of motivation on which it is based, path-goal theory is multifaceted and has several versions. Its key features are summarized in Figure 5-3.

The theory is so complex that it is helpful to consider an overview before studying more of the details. The major proposition of path-goal theory is that the manager should choose a leadership style that takes into accounl the characteristics of the group members and the demands of the task. Furthermore, initiating structure will be effective in situations with a low degree of subordinate task structure but ineffective in highly structured task situations. The rationale is that in the first situation, subordinates wel­ come initiating structure because it helps to provide structure to their some­ what ambiguous tasks. Instead of just flailing aro4nd, the leader provides guidance. In the situation of highly structured tasks, more structure is seen as unnecessary and associated with overly close supervision.

9

In his reformulated version of path-goal theory, House offered a meta­ proposition, which provides a capsule summary of a dizzying amount of studies and theorizing in relation to the theory. Understanding this meta­ proposition would be a good take-away from the theory: For leaders to be effective, they should engage in behaviors that complement subordinates' environments and abilities. They should engage in these behaviors in a manner that compensates for deficiencies and that enhances subordinate

Characteristics of Group Members

(Contingency factors)

LEADERSHIP STYLE ·'

OUTCOMESDireotlw . ProductivitySupportive ,~

MoraleParticipative Acl'lie,lement-oriented

(Contingency factors)

Demands of the Task

FIGURE 5-3 Tl1e Path-Goal Theory of Leade rship .

To achieve the outcomes ot productivity and morale, the manager chooses one of four leadership styles, depending on {a) the characteristics of the situation and {b) the

demands of the task.

THE PATH-GOAL THEORY OF LEADERSHIP EFFECTIVENESS 153

satisfactions as well as individual and work unit performance. 1° For exam­ ple, if our coffee shop owner found that one of her workers was fearful of losing his or her job because ot Starbucks competition, she would give him or her lots of encouragement and explain the survival plan of the coffee shop in detail.

Two key aspects of this theory will be discussed: matching the leadership style to the situation and steps the leader can take to influence performance and satisfaction.

Matching the Leadership Style to the Situation

Path-goal theory emphasizes that the le;~der should choose among four leadership styles to a chieve optimum results in a given situation. Two important sets of contingency factors are the type of subordinates and the lasks they perform (a key environmental factor). The type of subordinates is determined by how much control they think they have over the environ­ ment (locus of control) and by how well they think they can do the assigned task.

Environmental contingency factors are those that are not within the con­ trol of group members but influence satisfaction and task accomplishment. Three broad classifications of contingency factors in the environment are U) the group members' tasks, (2) the authority system within the organiza­ tion, and (3) the work group.

To use path-goal theory, the leader must first assess the relevant variables in the environment. Then he or she selects one of the fou r styles listed next that fits those contingency factors best:

1. Directive style. The leader who is directive (similar to task motivated) emphasizes formal activities such as planning, organizing, and control­ ling. When the task is unclear, the directive style improves morale.

2. Supportive style. The leader who is supportive (similar to relationship motivated) displays concern for group members' well-being and creates an emotionally supportive climate. The supportive leader enhances morale when group members work on dissatisfying, stressful, or frus­ trating tasks. Group members who are unsure of themselves prefer the supportive leadership sty le.

3. Participative style. The leader who is participative consults with group members to gather their suggestions, and then considers these sugges­ tions seriously when making a decision. The participative leader is besl suited for improving the morale of well-motivated employees who per­ form nonrepetitive tasks .

4. Achievement-oriented style. The leader who is achievement oriented sets challenging goals, pushes for work improvement, and sets high expectations for team members, who are also expected to assume responsibility. This leadership style works well with achievement­ oriented team members and with those working on ambiguous and 11onrepetitiYe tasks.

154 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

A leader can sometimes successfully combine more than one o f the four styles, although this possibility is not specified in path-goal theory. For example, during a crisis, such as a major product recall, the marketing manager might need to be directive to help the group take fast action. After the initial emergency actions have been taken, the leader, recognizing how stressed the workers must be, might shift to a supportive mode.

few practicing leaders and managers attempt to systematically apply the path-goal theory, yet many effective leaders apply some aspects of the theory intuitively. An example is Mark Murphy, the president and CEO of the Green Bay Packers, a National Football League (NFL) team. Part of the reason Murphy is so well liked by team members and fans is that he uses a supportive style. At the same time, he emphasizes an achievement-oriented style to get the most from his staff and the players. After his playing days were over, Murphy earned a law degree and an MBA. '

Joe Gibbs, a Hall of Fame coach, noticed Murphy's knack for leadership early on. "He was somebody I could go and talk to if I were having pro­ blems," he says. "Mark was so smart. He made the absolute most of his abilities." 11 Murphy also practices participative leadership, as evidenced by his frequent use of management by wandering around (MBWA) with his senior management. 12 (MBWA refers to casually dropping by the work sites of subordinates and chatting with them about work and listening to

their input.)

Steps Leaders Can Take to Influence Performance and Satisfaction==-====:.:.:.=:.::___________________,_.,,,..____=--- In addition to recommending the leadership style to fit the situation, the path-goal theory offers other suggestions to leaders. Most of them relate to motivation and satisfaction, including the following: '

1. Recognize or activate group members' needs over which the leader has

control. 2. Increase the personal payoffs to team members for attaining work goals.

The leader might give high-performing employees special recognition. 3. Make the paths to payoffs (rewards) easier by coaching and providing

direction. For instance, a manager might help a team member be

selected for a high-level project. 4. Help group members clarify their expectations of how effort will lead

to good performance and how performance will lead to a reward. The leader iµight say, "Anyone who has gone through this training in the past came away knowing how to implement a Six Sigma (quality stan­ dards) program. And most people who learn how to use this system

wind up getting a good raise." 5. Reduce frustrating barriers to reaching goals. For example, the leader

might hire a tt>mporary worker to help with a seasonal work

overload.

SITUATIONAL LEADERSHIP® 11 (SLII) 155

6. Increase opportunities for personal satisfaction if the group member performs effectively. The if is important because it reflects contingent behavior on the leader's part.

7. Be careful not to irritate people by giving them instructions on things they already can do well.

8. To obtain high performance and satisfaction, the leader must provide structure if it is missing and supply rewards contingent on adequate performance. To accomplish this, leaders must clarify the desirability of goals for the group members. 13

As a leader, you can derive specific benefit from path-goal theory by applying these eight methods of influencing performance. Although research interest in path-goal theory has almost disappeared in recent years, the basic tenets of the theory are on target. Any comprehensive the­ ory of leadership must include the idea that the leader's actions have a major impact on the motivation and satisfaction of group members. 14

Despite the potential contributions of path-goal theory, it contains so many nuances and complexities that it has attracted little interest from managers.

Situational Leadership® II (SLII)

The tw(, contingency approaches to leadership presented so far take into account collectively the task, the authority of the leader, and the nature of the subordinates. Another explanation of contingency leadership places its primary emphasis on the characteristics of group members. Situational Leadership II (SLII), developed by Kenneth H. Blanchard and his collea­ gues, explains how to match leadership style to the capabilities of group members on a given task. 15 (The SLII model presented here is a newer ver­ sion of the older Hersey-Blanchard Situational Leadership Theory.) For example, you might need less guidance from a supervisor when you are skilled in a task than when you are performing a new task. The situational model is particularly applicable to frontline leaders such as supervisors and team leaders.

SUI is designed to increase the frequency and quality of conversations about performance and professional development between managers and group members so that competence is developed, commitment takes place, and turnover among talented workers is reduced. Leaders are taught to use the leadership style that matches or responds to the needs of the situation.

Before delving further into the situational leadership model, do the Leadership Self-Assessment Quiz 5-1. It will help alert you to the specific behaviors involved in regarding the characteristics of group members as key contingency variables in choosing the m o st t> ffective leadership style.

156 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

LEADERSHIP SELF-ASSESSMENT QUIZ 5-1

Measuring Your Situational Perspective

Instructions: Indicate how well you agree with the following statements, using the following scale: DS = disagree strongly; D = disagree; N = neutral; A = agree; AS = agree strongly. Circle the most accurate answer.

DS D N A AS

1. Workers need to be carefully trained before you can place high expectations on 1 2 3 4 5

them.

2. Workers who are more knowledgeable have less need of small, day-by-day 1 2 3 4 5

goals.

3. Workers who are self-confident and intelligent require less supervision and 1 2 3 4 5

guidance than do other workers.

4 . Workers who are anxious usually need a lot of reassurance. 1 2 3 4 5

5. Most workers learn at about the same pace, so the manager can give about 5 4 3 2 1 the same amount of instruction to each worker.

6. The same well-delivered pep talk will usually appeal to workers at all levels. 5 4 3 2 1

7. A manager will usually need to provide clear directions during a crisis. 1 2 3 4 5

8. As a manager, I would invest the least amount of time supervising the most 1 2 3 4 5

competent workers.

9. An effective approach to supervising emotionally immature workers is to grant 5 4 3 2 1 them a lot of freedom.

10. It is best not to put much effort into supervising unenthusiastic staff members. 5 4 3 2 1

11. An effective leader delegates equal types and amounts of work to group 5 4 3 2 1 members.

12. If I noticed that a team member appeared to be insecure and anxious, I would 1 2 3 4 5 give him or her especially clear instructions and guidance.

13. Many competent workers get to t11e point where they require relatively little 1 2 3 4 5

leadership and supervision.

14. Whether a person is a young adult or old adult often influences the !Jest 1 2 3 4 5 approach to leading him or her.

15. A person's cultural background usually has no significance in providing 5 4 3 2 1

him or her appropriate leadership.

Scoring and Interpretation

46-75 points: You have (or would have) a strong situational perspective as a leader and manager.• • 31-45 points; You have (or would have) f;ln average situational perspective as a leader and manager . • 15-30 points: You rarely take (or would take) a situational perspective as a leader and manager .

Skill Development: For the vast majority of leadership and management assignments, it pays to sharpen

your situational perspective. If you scored lower than you want, sharpen your insights into situations by asking

yourself, "What are the key factors in this situation that will influence my effectiveness as a leader-manager?"

Study both the people and the task in the situation.

Basics of SLII

SUI stems from the original situational model. The major premise of SUI is that the basis for effective leadership is managing the relationship between a leader and a subordinate on a given task. The major concepts of the SUI model are presented in Figure 5-4. According to SUI, effective lea­ ders adapt their behavior to the level of commitment and competence of a particular subordinate to complete a given task. For example, team member Tanya might be committed to renting some empty office space by year-end and is also highly skilled at such an activity. Or she might feel that the task is drudgery and not have much skill in selling office space. The combination of the subordinate's commitment and competence determines his or her developmental level, as follows:

DI-Enthusiastic Beginner. The learner has low competence but high commitment.

DZ-Disillusioned Learner. The individual has gained some competence but has been disappointed after having experienced several setbacks. Commitment at this stage is low.

03-Capable but Cautious Performer. The learner has growing compe­ tence, yet commitment is variable.

04-Self-Reliant Achiever. The learner has high competence and comm itment.

en 0

·s:: co J: QJ III C. :c II) C: .2 1ii ai ~ Ol C:

:;::::;

0 a. C. :::s

en

S3 Supporting Leadership Style: Low on directing and high on supporting behaviors

D3 Capable but Cautious Performer: Growing competence and variable commitment

S4 Delegating Leadership Style: Low on directing and low on supporting behaviors

D4 Self-Reliant Achiever: Highest level of commitment and competence

~-------------

SITUATIONAL LEADERSHIP® II (SLII) 157

S2 Coaching Leadership Style: High on directing and high on supporting behaviors

D2 Disillusioned Learner: Some competence but low commitment

S1 Directing Leadership Style: High on directing and low on supporting behaviors

D1 Enthusiastic Beginner: Low competence but high commitment

~ C

~------------~ ~ ~

C m

Directing (Task-Related Behaviors) u ©

FIGURE 5-4 Situational Leadership II (SLII).

158 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

SLII explains that effective leadership depends on two independent hehaviors: supporting and directing. (By now, you have read about this dichotomy several times in this chapter as well as in Chapter 4.) Support­ ing refers to relationship behaviors such as the leader's listening, giving recognition, communicating, and encouraging. Directing refers to task­ related behaviors such as the leader's giving careful directions and controlling.

As shown in Figure 5-4, the four basic styles are:

SI-Directing. High directive behavior/low supportive behavior. S2-Coaching. High directive behavior/high supportive behavior. S3-Supporting. Low directive behavior/high supportive behavior. S4-Delegating. Low directive behavior/low supportive -behavior.

For best results on a given task, the leader is required to match his or her style to the developmental level of the group member. Each quadrant in Figure 5-4 indicates the desired match between leader style and subordinate development level.

A key point of SLII is that no single style is best: An effective leader uses all four styles depending on the subordinate's developmental level on a given task.

The most appropriate leadership style among SI to S4 corresponds to the subordinate developmental levels of Dl to D4, respectively: Enthusiastic beginners (Dl) require a directing (SI) leader; disillusioned learners (D2) need a coaching (S2) leader; capable but cautious performers (D3) need a supporting (S3) style of leader; and self-reliant achievers (D4) need a dele­ gating (S4) style of leader.

Evaluation of SLII

Situational leadership represents a consensus of thinking about leadership behavior in relation to group members: Competent people require less spe­ cific direction than do less competent people. The model is also useful because it builds on other explanations of leadership that emphasize the role of task and relationship behaviors. As a result, it has proved to be use­ ful as the basis for leadership training. At least 3 million managers have been trained in situational leadership, covering various stages of the model, so we can assume that situational leadership makes sense to managers and l:ompanies. The situational model also corroborates common sense and is therefore intuitively appealing. You can benefit from this model by attempt­ ing to diagnose the readiness of group members before choosing the right leadership style.

A challenge in applying SLII is that the leader has to stay tuned into which task a group member is performing at a given time and then imple­ ment the correct style. Because assignments can change rapidly and group

THE NORMATIVE DECISION MODEL 159

Applying Situational Leadership II

You are playing the role of a team leader whose team

has been given the responsibility of improving customer

service at a consumer electronics megastore. Before

jumping into this task, you decide to use SLII. Today,

you are going to meet with three team members individ­

ually to estimate their developmental level with respect

to performing the customer-service-improvement task.

You will want to estimate both their competence and

commitment to perform the task. (Three different people will play the role of group members whose readiness is

being assessed.) After the brief interviews (about five minutes) are conducted, you will announce which leader­

ship style you intend to use with each of the people you

interviewed. Class members not directly involved in the

role play will offer feedback on how well you assessed

the team members' readiness.

members are often working on more than one task in a day, the leader may have to keep shifting styles.

SLII presents categories and guidelines so precisely that it gives the impression of infallibility. In reality, leadership situations are less clear­ cut than the four quadrants suggest. Also, the prescriptions for leadership will work only some of the time. For example, many supervisors use a coaching style (S2) with a disillusioned learner (D2) and still achieve poor results. A major concern is that there are few leadership situations in which a high-task, high-relationship orientation does not produce the best results .

Leadership Skill-Building Exercise 5-1 provides you with the opportunity to practice implementing the situational leadership model. The same exercise also supports other contingency and situational models.

The Normative Decision Model

Another contingency viewpoint is that leaders must choose a style that eli­ cits the correct degree of group participation when making decisions. Since many of a leader's interactions with group members involve decision mak­ ing, this perspective is sensible. The normative decision model views lead­ ership as a decision-making process in which the leader examines certain factors within the situation to determine which decision-making style will be the most effective. Here we present the latest version of the model that has evolved from the work of Victor Vroom and his associates over thirty _vears, based on research with more than 100,000 managers. 16 The models have changed but they all include the basic idea of matching decision­ making style to situational factors.

1.60 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

Decision-Making Styles

The normative model (formerly known as the leader-participation model) identifies five decision-making styles , each reflecting a different degree of participation by group members:

1. Decide. The leader makes the decision alone and either announces or sells it to the group. The leader might use expertise in collecting infor­ mation from the group or from others who appear to have information

relevant to the problem. 2. Consult (Individually). The leader presents the problem to the group

members individually, gathers their suggestions, and then makes the

decision. 3. Consult (Group). The leader presents the problem to group mem­

bers in a meeting, gathers their suggestions, and then makes the

decision . 4. Facilitate. The leader presents the problem and then acts as a facil­

itator, defining the problem to be solved and the boundaries in which the decision must be made. The leader wants concurrence and avoids having his or her ideas receive more weight based on

position power. .. 5. Delegate. The leader permits the group to make the dec1s10n

within prescribed limits . Although the leader does not directly intervene in the group's deliberations unless explicitly asked, he or she works behind the scenes . providing resources and encouragemen l.

Contingency Factors and Application of the Model

The leader diaonoses the situation in terms of seven variables, or contin­ gency factors, ~hat contribute to selecting the most appropriate decision­ making style. Based on answers to those variables, the leader. or ma~~ger follows the path through decision matrices to choose one of five dec1s10n­ making styles. The model has two versions: one when time is critical, and one when a more important consideration is developing group members' decision-making capabilities. When development of group members receives higher priority, the leader or manager relies more on the group to make a decision even if the process is time consuming.

The situational factors, or problem variables, make the 'model a contin­ gency approach. The decision-making style chosen depends on these factors, whkh are defined as follows:

Decision Significance: The significance of the decision to the success of the project or organization (significance deals with decision quality).

Importance of Commitment: The importan ce of team members' com­ m itment to the decision (commitment deals with decis ion acceptance).

LEA DE R-M EMB ER EXCHANGE (LMX) AND CONTINGENCY THEORY 1.61.

Leader Expertise: Your knowledge or expertise in relation to the problem. Likelihood of Commitment: The likelihood that the team will commit

itself to a decision you might make on your own. Group Support: The degree to which the team supports the organiza­

tion's objectives at stake in the problem. Group Expertise: Team members' knowledge or expertise in relation to

the problem. Team Competence: The ability of the team members to work together in

solving problems.

Accurate answers to these seven situational factors can be challenging to obtain. The leader may have to rely heavily on intuition and also minimize distorted thinking, such as believing he or she has some expertise but in fact does not.

Although applying the model in its true form is complicated and subject to misinterpretation, the take-away from the model provides useful clues abm 1t making group versus individual decisions, as follows: 17

1. A consultative or collaborative decision-making style is likely to bring about the best results when (a) you need information from others to solve the problem in question, (b) the problem is not clearly defined, (cl team member acceptance of the decision is important, and (d) you have sufficient time to deal with a group decision.

2. A decide decision-making style (making the decision by yourself) is recommended when (a) you have more expertise than the individual group members, (b) you are confident about your ability to make the decision in question, (c) the team will most likely accept your decision, and (d) the time available for decision making is limited.

The normative model provides a valuable service to practicing managers and leaders. It prompts them to ask questions about contingency variables in decision-making situations. At a minimum, the model prompts the leader lo reflect on whether to make a group or unilateral decision in relation to an issue of consequence.

Leader-Member Exchange (LMX) and Contingency Theory

Another perspective on the contingency approach is suggested by the leader-member exchange theory. Leaders who adapt their style to different individuals within the group, or have different quality relationships with individual group members, are essentially practicing contingency leader­ ship. Hundreds of studies have been conducted about LMX theory. One of the many questionnaires used to measure the quality of the relationship between the leader and the group member is presented in Leadership Self­ Assessment Quiz 5-2. H ere we present several conclusions from LMX research that suggest a contingency approach to leadership.

162 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

LEADERSHIP SELF-ASSESSMENT QUIZ 5-2

Quality of Leader-Member Relations

Instructions: Indicate whether you agree or disagree with each of the following statements in reference to a

specific present or former supervisor.

AGREE DISAGREE

1. I like my supervisor verY much as a person. □ □ 2. I respect my supervisor's knowledge and competence on the job. 0□ 3. My supervisor would defend me to others in the organization if I made a mistake. □ □ 4. I am impressed with my supervisor's knowledge of his or her job. □ □ 5. My supervisor is the kind of person one would like to have as a friend. □ □ 6. My supervisor is a lot of fun to work with. □ □ 7. I do not mind working my hardest for my supervisor. □ □ 8. I admire my supervisor's professional skills. 0 0 9. My supervisor would come to my defense if I were "attacked" by others. □ □

10. I am willing to apply extra efforts, beyond those normally required to meet my □ □ supervisor's work goals.

11. My supervisor defends my work actions to a superior, even without complete □ □ knowledge of the issue in question.

12. I do my work for my supervisor that goes beyond what is specified in my job description. □ □

Scoring and Interpretation: The more of tile above statements you agree with, the higher the quality of your

leader-member exchange. Agreeing with nine or more statements suggests a l1igh-quality leader-member

exchange. Agreeing with between four and eight statements suggests an average quality leader-member

exchange. Agreeing with three or fewer suggests a poor-quality leader.,rnember exchange.

Source: Robert EisenlJerge,r et al.. "Leacter-Memt,{>r Exchange and Affective OrgtmizatiorKrl Commitment: The Contribution of Supervisor's Organizational Embodiment," Journal of Applied Psychology, November 2010, p 1091.

1. Leaders tend to give members of their in-group more favorable perfor­ mance ratings than they give to out-group members, even when their objec­ tive performance is the same. This finding reflects the idea that th e leader might be kinder toward group members he or she likes.

2. Leaders do not always develop entirely different relationships with each group member, but may respond the same way to a few members of the group. For example, the leader might show equal care and trust for three members of an eight-person tearn. 18

3. In larger groups, there tends to be more differences with respect to leader-member exchanges. As a result, the leader of a large group is more likely to use a slightly different style with various group members, such as being more authoritarian with several of the group members.

LEADERSHIP DURING A CRISIS 163

4. A manager is more likely to act as a servant leader toward subordinates with whom he or she has high-quality exchanges. 19 As a consequence, in-group members are likely to perceive that they have a leader who is working on their behal f.

5. Leaders are more likely to empower group members with whom they have a high-quality exchange (or good relationship) because they are more likely to trust those members. Research suggests, however, that better results for the organization will be attained if leaders attempt to have high­ quality relationships with more group members and empower them at the same time. 20

6. Larger differences in leader-member exchanges tend to lead to higher team performance when the LMX-quality median is low (meaning that group members tend to have poor exchanges with the leader). In contrast, when the LMX-quality median is high, differences in leader-member exchanges are not related to team performance. (If most group members feel that they have good exchanges with the leader, being treated a little differently by the leader does not affect their performance.) Similarly, when the LMX-quality median is low, more differentiation in exchanges leads to higher commitment to the group by its members. In contrast, when the LMX-quality median is high, differentiation has no effect on commitment. 21

(If you like your exchanges with the leader, your commitment is n ot affected by his or her different relationships with team mates.)

Leadership During a Crisis

Among the potential crises facing organizations are a drastic revenue decline; pending bankruptcy; homicide in the workplace; scandalous or criminal behavior by executives; natural disasters, such as hurricanes, floods, or earthquakes; nuclear radiation spills; bombings and other terror­ ist attacks; and a cruise ship being shipwrecked. Leading during a crisis an be regarded as contingency leadership because the situation demands

that the leader emphasize certain behaviors, attitudes, and traits. Crisis leadership is the process of leading group members through a sudden and largely unanticipated, intensely negative, and emotionally draining circum­ stance. Robin Kielkowski, vice president of Global Business Continuity with BNY Mellon, observes that leadership is the key ingredient in success­ lul crisis management. Effective crisis leadership ensures that a business is prepared before a crisis emerges, and that successfully navigates response and recovery. 22

Here we describe nine leadership attributes and behaviors associated with successfully leading an organization or organizational unit through a crisis. Leadership Self-Assessment Quiz 5-3 gives you an opportunity t o think through your o wn tendencies toward being able to lead through a crisis.

164 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

LEADERSHIP SELF-ASSESSMENT QUIZ 5-3

Checklist for Crisis Leadership

Instructions: Indicate whether you agree or disagree with each of the following statements in reference to dealing

with a work-related crisis.

AGREE DISAGREE

1. 1can make decisions and recommendations although under extreme time pressures. [] D 2. 1 stay composed when I have to deal with an urgent problem that is suddenly facing me. D D 3. I almost never choke under pressure. [J □ 4. When the pressure is heavy, I can give clear direction to other people. D□ 5. When someone else is facing a very difficult situation, I am reassuring and helpful. D D 6. When faced with an emergency, I can make a good decision even without all the facts 0 D

I need.

7. When facing a major problem, I quickly get the input from people who might have useful D D suggestions for dealing with the problem.

8. If I am faced with a real mess that is mostly or partly my responsibility, I tell the trutl1 D D about what happened.

9. When faced with an overwhelming problem, I can usually imagine what can be done lo D D find a solution.

10. 1can change my usual work activities immediately to take care of an urgent neecl. [.l D

Scoring and Interpretation: The more of the above statements you agree with, the stronger your tendenci~s for

being an effective crisis leader. Agreeing with eight or more statements suggests (and your pe1cept1on 1s ac~urate)

high ability to deal witll and lead others through a crisis. Agreeing with between three and seven statements sug-.

gests an average degree of crisis leadership ability. Agreeing with two or fewer statements suggests a l1rn1ted ability

right now to lead others through a crisis.

Source: Statement, .1 ,ind 1.0 are adi'lptt><.I from Constance Noonan Hadley, Todd _L: r.,ttin,;ky, S. Amy s~_mmer, and Wh~ichu:art~~ U, "Measuring the Efficacy of Leaders t.o As$e,s lnforrnc1tion ,1nrJ Mal<e Dec1s,on 111 a Cns15 The C-LEAD Scale, The Leaders P Q 1Y, August 2011, p. 638.

Be Decisive The best-accepted principle of cns1s leadership is that the leader should take decisive action to remedy the situation. The graver the nisis the less time the leader has to consult a wide array of people. After the pian is formulated, it should be widely communicated to help reass_ure group members that something concrete is being d~ne about th~ pred1ca­ rnent. After their physical facilities were destroyed m the terronst attacks on the World Trade Center on September 11, 2001, several leaders announced the next day that their firms would move to nearby ba~kup loca­ tions. Communicating plans helps reduce uncertainty about what 1s happ~n­ ing to the firm and the people in it. A leader who takes highly visible actwn to deal with a crisis is likely to be viewed as competent.

A corollary of being decisive during a crisis is not ~o- be indeci~iv~ or Lo h ide from the crisis in its midst. The first phase of cns1s leadership 1s to

LEADERSHIP DURING A CRISIS 165

stabilize the emergency situation and buy time. 23 Suppose, for example, that five key managers leave the company at the same time to join a competitor, and only one in-house replacement is available. To deal with the emergency, the CEO might hire four managers tram an employment agency that specia- lizes in providing temporary managers and professionals. The next step would be to prepare other company personnel to replace managers who quit in the near future.

Being decisive in response to a crisis also includes communicating widely the plans for resolving the problems that created the crisis, assuming that the organization had some responsibility for the crisis. Announcing these plans appeared to give many employees hope for better times ahead.

Another component of decisiveness is to avoid the fear of failure that can prevent taking the necessary action to exit the crisis. Chris Warner and Don Schmincke, authors of High Altitude Le,adership, advise leaders that fear is the ultimate strategy killer. "It stops staff from making great decisions, stops change agents from disrupting the status quo, and stops leaders from

24 leading." The decision of Alan Mullaly at Ford to bring back the defunct Taurus model is a good example of avoiding the fear of failure. Ford offi­ cials had discontinued the Taurus because of declining sales, but Mullaly thought the former popularity of the model warranted bringing it back to the public.

Lead with Compassion Displaying compassion with the concerns, anxieties, and frustrations of group members is a key interpersonal skill for crisis leadership. The type of compassionate leadership that brings about organi­ zational healing involves taking some form of public action that eases pain and inspires others to act as well. Compassionate leadership encompasses two related sets of actions. The first is to create an environment in which affected workers can freely discuss how they feel, such as a group meeting to talk about the crisis or disaster. The second is to create an environment in which the workers who experience or witness pain can find a method to alleviate their own suffering and that of others. The leader might establish a special fund to help the families of workers who were victims of the disas­ ter or give workers the opportunity to receive grief counseling.

Another way to display compassion is for the leader to make personal sacrifices before asking others to make sacrifices to get through the crisis. 25 During a financial crisis facing an organization, many leaders have volun­ tarily taken a pay cut before mandating a salary reduction for others. An extreme approach is for the CEO of a troubled company to ask the board for an annual salary of $1.00 until the company is again profitable. (Skeptics will point out that executives who take the $1.00 annual salary usually receive generous stock options.)

Think Strategically (See the Big Picture) A success factor for the leader of an organization or a key organizational unit is to think strategically, including seeing the big picture. During an organizational c1isis, this cognitive skill increases in importance because subordinates may become so mired in the

166 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

crisis that they see rn) way out. The effective c risis leader helps th e group understand that conditions will soon change for the better. A group of researchers headed by Leslie A. DeChurch used measures of historical events (or historiometric analysis) to elucidate the aspects of leadership essential in extreme contexts. Critical incidents, or key activities, taking place during the crisis situation were also studied. Published reports of events, including newspapers and books, constituted the qualitative data in this type of analysis. These extreme situations included responding to the aftermaths of natural disasters and orchestrating post-war stability, support, transition, and reconstruction efforts.

As described in the study, multiteam systems are situations in which the leader orchestrates events beyond the individual and single team level but less than the total organization. The teams work together in a network fash­ ion, such as teams of firefighters dealing with a burning apartment build­ ing. One category of multiteam systems studied was disaster response systems. The primary objectives of a disaster response system include immediate actions to save lives, protect property and the environment, and meet human needs. A disaster response system would be called for in response to an event such as Hurricane Katrina.

Another category of multiteam systems studied was provincial recon­ struction teams, or joint civilian-military systems designed to deliver aid and assist local communities in post-war reconstruction projects. At the same time, security is provided for the workers involved in the projects. The ability to reduce terrorism and build local communities and their gov­ ernments (such as in Afghanistan and Iraq) is contingent upon the success

of these teams. A major finding of the historical analysis of leadership events was that

the leadership !unction of strategy was important in dealing with the crisis event. One aspect of strategy relevant here was labeled analyze the situation/ mission analysis. It involves such action as gathering information, analyzing what is going on, determining constraints, and defining the problem. Another aspect of strategy uncovered that is relevant here was understand­ ing the big picture. It involves the integration of gathered information in such a way that an understanding of the multiteam system's place in the system is achieved. 26 Understanding how the component teams fit into the system is also part of understanding the big picture.

Reestablish the Usual Work Routine A temporary drop in performance and productivity is almost inevitable for most workers after disaster strikes, such as an ~arthquake or terrorist attack-even if the organization was not directly affected.

Although it may appear callous and counterintuitive, the leader should emphasize the temporary nature of the performance decline. An effective way of helping people deal with a workplace crisis is to encourage them to return to their regular work. It is important for workers to express their feelings about the crisis before refocusing on work, but once they have,

LEADERSHIP DURING A CRISIS 167

returning to work helps ground them in reality and restores purpose to their lives. Randall Marshall, director of trauma studies for the New York State Office of Mental Health, said after 9/11, "A healthy response to this type of situation is to get back into a routine." 27

Avoid a Circle-the-Wagons Mentality O ne of the worst ways to lead a group through a crisis is to strongly defend yourself against your critics or deny wrongdoing. The same denial approach is referred to as maintaining a bun­ ker mentality or stonewalling the problem. Instead of cooperating with other stakeholders in the crisis, the leader takes a defensive posture. A case in point is how U.S. interior secretary Ken Salazar dealt with one aspect of the disastrous BP oil spill in the Gulf of Mexico in 2009. Part of the problem had been attributed to a too-friendly relationship between the Minerals Management Service and oil companies, which might have resulted in non­ rigorous inspections of oil drilling. Instead of denying that problems existed at the Minerals Management Service, Salazar quickly reorganized the government unit with a new name: Bureau of Ocean Energy Management, Regulation, and Enforcement. Stricter ethical standards were also imposed to show that the new agency would act more independently in inspecting o il-drilling equipment and processes. 28

Display Optimism Pessimists abound in every crisis, so an optimistic leader can help energize group members to overcome the bad times. The effective crisis leader draws action plans that give people hope for a better future (as in strategic thinking). Barbara Baker Clark contends that the role of a leader during a crisis is to encourage hopefulness. She states:

I'm not saying that you have to plaster a stupid grin on your face even if the

bottom line is tanking or people are dying in battle. I am saying don't wallow

in pessimism. Believe it or not, it matters to your employees that you remain

reasonably optimistic. It will reduce anxiety and keep everyone motivated.

That's the power of leadership. 29

Prevent the Crisis Through Disaster Planning The ideal form of crisis leadership is to prevent a crisis through disaster planning. A key part of planning for a physical disaster, for example, is to anticipate where you would go, how you would get in touch with employees, and where you might set up a tempo­ rary workplace. Having a list of backup vendors in case they are hit by a physical disaster is also important. Small business owners should be net­ working with other business owners and agree to assist each other if a crisis strikes. Arranging in advance for support groups, such as grief counselors, is another key element of disaster planning. Even the fact of letting employees know that a disaster plan is in place can be an effective leadership act b<:'cause it may lower worker anxiety. Also, the leader might communicate that the company has purchased disaster insurance.

The Deepwater Horizon oil spill disaster was attrihuted, in part, to inade­ quate disast<:'r plans. Former BP executive Tony Hayward said it was

168 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

probably true that the company didn't do enough planning in advance o f the disaster. He said that "There are some capabilities that we could have avail­ able to deploy instantly rather than creating as we go." Apparently, BP was not prepared for the long-term, round-the-clock process ot coping with a deep-sea spill. 30

Stay Calm and Provide Stable Performance Effective leaders stay calm and are steady performers, even under heavy workloads and uncertain conditions. Remaining steady under crisis conditions contributes to effectiveness because it helps team members cope with the situation. When the leader remains calm, group members are reassured that things' will work out. Sta­ bility also helps the managerial leader appear protessional and cool under pressure. A representative example is Frederic Ouden, the chairman and chief executive officer of Societe Generale. One of the major crises faced by this French banking giant were the stock market plunge in 2008, followed by a stock market scandal that cost the bank $7 billion (U.S.). Another crisis took place in 2011 when rumors arose that the bank had lost its liquidity as the Greek debt crisis swept Europe. Ouden says that the key to dealing with crisis of this magnitude is to remain calm, and manage your stress. Further­ more, to avoid creating useless turbulence, you must create a process to help the teams organize themselves to make the right decisions at the right time. 31

Be a Transformational Leader During times of large and enduring cns1 s . transformational leadership may be the intervention of choice. The transfor­ mational leader can often lead the organization out of its misery. Transl'or ­ mational leadership is likely to benefit the troubled organization both in dealing with the immediate crisis and in performing better in the long nm. David Novak, the CEO of Yum! Brands (which includes KFC , Taco Bell , Pizza Hut, and Long John Silver's), has seen his share of crisis, including vermin infestation in a restaurant that was broadcast on television and You­ Tube. He says that honesty, consistency, and continuity of communication is the key to managing through these issues and that the transformation may take six to nine months. 32

Another way a transformational leader helps a company or work unit cope with crisis is to establish a climate of trust long before a crisis strikcs.n If workers and other shareholders trust the leader, they will lake more seri ­ ously his or her directives during the crisis, Leaders at both Walrnart and McDonald's did a notable job of holding their work force together after Hurricane Katrina. Executives and store managers alike scrambled to get in touch with employees to assure them that they would all have their jobs back as soon as operations were up and running. In general, workers in the Gulf Coast area had trusted leadership at the two companies.

The Leader in Action profiles suggest a leader in a well-known company who practices contingency management, in general, and is facing a situa­ tion approaching the need for crisis leadershi p.

EVIDENCE-BASED LEADERSHIP FOR TH E CONTINGENCY AND SITUATIONAL APPROACH 169

Sandra E. Peterson, Group Worldwide Chairman of the Johnson & Johnson Consumer Health Unit

In 2012, the Johnson & Johnson consumer health unit that manufactures and sells such household brands as Band Aid

and Tylenol was really hurting. A series of forty-eight product

recalls had cost the consumer unit about $1.6 billion in lost

sales. Among the problems necessitating the recalls were

metal shavings floating in some bottles, incorrect levels of

certain ingredients, and bad odors. To help remedy these

problems, the Johnson & Johnson board, including the com­

pany CEO decided to bring in an outsider.

Sandra A. Peterson, the person chosen for this posi­

tion as the group worldwide chairwoman (officially "chair­

man"), was given the responsibility of overseeing

consumer companies, information technology, and the

global supply chain. Prior to this position, she was the

chairwoman and chief executive of Bayer CropScience,

a division of the German pharmaceutical company,

Bayer. Upon recruiting Peterson, Alex Gorsky, the John­

son & Johnson chief executive said, "Sandi Peterson is

an experienced global leader known for her strategic

thinking end proven track record in growing businesses.

Sl1e brings 25 years of experience to her new role, which wili draw on her expertise in building fully integrated

glol)al businesses, and focusing on growth. "

As Peterson dug into her new position, she knew that

tJ1e company was planning to make numerous upgrades

in factories producing consumer health products, includ­

ing rebuilding a factory that produces liquid children's

medicines such as Tylenol. The same factories had to

undergo more frequent inspections under a consent

decree with the U.S. Food and Drug Administration.

Many people thought that Peterson's distinguished

career and stable leadership and management approach

would give her the credibility needed to bring about these

substantial changes.

Peterson received a BA in government from Cornell

University and an MPA in applied economics from Princeton

University. Prior to joining Bayer, she held several leader­

ship roles at Medco Health Solutions and had been in

charge of research and development, quality, and regula­

tory affairs and procurement at Nabisco, Inc. She also

worked in strategy, finance, and product development at

Whirlpool Corp., and began her career as a consultant at

McKinsey & Company Inc.

QUESTIONS

1. Which aspect of Peterson's leadership experiences

do you think will enhance her ability to practice con­

tingency management and leadership?

2. Why might her position at the consumer unit ot

Johnson & Jotinson call for skills in crisis leadership?

3. Check media sources to see if Peterson has been suc­

cessful in her leadersl1ip role at Johnson & Johnson.

Source: Original story based on facts and observations in the following sources: Ed Silverman, "J & J Hires Bayer Exec to Oversee Troubled Units," Pharma/at (www.pharmalive.com) , September 13, 2012, pp. 1-4; Katie Thomas, "J. & J. Names Outsider to Rut Its Troubled Con­ sumer Unit," The New York Times (www.nytimes.com), September 13, 2012, pp. 1-2; Jonathan D. Rockoff and Joann S. Lublin, "J & J Recruits Bayer Executive," The Wall Street Journal, September 14, 2012, p. 83; Linda A. Johnson, "J & J Taps Bayer Exec for New Post Over 3 Divisions," The Associated Press, September 13, 2009; "Man­ agement Team: Sandra E. Peterson," (www.investor.jnj.com/), Johnson & Johnson Services, Inc. 1997-2013, p. 1.

Evidence-Based Leadership for the Contingency and Situational Approach

,\ leading-edge way for a person tu practice contingency leadership would be to look for research-based evidence about the best way to deal with a given situation. Before taking action, the leader would ask, "What does tht' research literature tell me is most likely to work in this situation?"

170 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEAD ER S HIP

Evidence-based leadership or management is an approach whereby man­ agers translate principles based on best evidence into organizational prac­ tices. 34 Quite often the best evidence is empirical (based on experience) and recent. Yet, at times, old principles can still be useful. For example, it has been known for at least a century that when a manager has too many subor­ dinates, coordinating the work of subordinates is difficult. The alternative to evidence-based leadership is to rely heavily on common sense and adopting practices used by other companies, whether or not they fit a particular situ­ ation. Many of the principles and suggestions presented throughout this text would help a manager practice evidence-based leadership.

An example of using evidence-based leadership foli'ows: Research indicates that empowerment is more likely to succeed with group members whose cul­ tural values favor a manager or leader sharing power. In contrast, empower­ ment is less likely to succeed when the group members expect the leader to retain most of the power. (See Chapter 14 for the evidence.) In this example, a principle (empowerment works best when cultural values are compatible) is translated into practice (using empowerment to motivate and satisfy workers when the cultural values of the workers are compatible with empowerment).

An example of using evidence-based leadership stemming from the expe­ rience of managers is to regularly express thanks for a job well done. 35 The thank you can be expressed orally or in writing and should focus on some­ thing specific the person has accomplished such as, "Your tracking down of potential candidates for our opening by using the social media produced four good prospects. Thanks so much for lending your expertise."

Evidence-based leadership and management is not yet widely practiced, but Laking the study of leadership and management seriously will move man­ agers and organizations toward basing their practices and decisions on valid evidence. The result is likely to be more precise contingency leadership.

So far in this book, we have examined the nature of leadership, the inner qualities of

leaders, and leadership styles, including contingency leadership. In the next chapter,

we focus on a topic that incorporates many of tt1ese ideas: leadersl1ip ethics and social responsibility.

SUMMARY

Theories of contingency and situational leadership when they make their behavior contingent on situa­ build on the study of leadership style by adding more tional forces, including group member characteristics. specific guidelines about which style to use under Organizational effectiveness is affected by situational which circrnn;.tances. Leaders are most effecfo·e factors not under the leader's control. Situations shape

how leaders behave, and they also influence the con­ sequences of leader behavior.

Fiedler's contingency theory states that the best style of leadership is determined by the leader's work situation. Style, in Fiedler's theory, is measured by the LPC scale. If you have a reason­ ably positive attitude toward your LPC, you are relationship motivated. You are task motivated if your attitude is negative. Situational control, or favorability, is measured by a combination of the quality of leader-member relations, the degree of task structure, and the leader's position power.

The key proposition of Fiedler's theory is that in situations of high control or low control, leaders with a task-motivated style are more effective. In a situation of moderate control, a relationship­ motivated style works better. Leaders can improve situational control by modifying leader-member relations, task structure, and position power.

The path-goal theory of leadership effectiveness specifies what the leader must do to achieve high productivity and morale in a given situation. The major proposition of the theory is that the man­ ager should choose a leadership style that takes into account the characteristics of the group mem­ bers and the demands of the task. Initiating struc­ ture by the leader works best when the group faces an ambiguous task. Effective leaders clarify the paths to attaining goals, help group members progress along these paths, and remove barriers 10 goal attainment. Leaders must choose a style that best fits the two sets of contingency factors­ the characteristics of the subordinates and the tasks . The four styles in path-goal theory are direc­ tive, supportive, participative, and achievement oriented.

SUI, developed by Blanchard, explains how to match leadership style to the capabilities of group members on a given task. The combination of the subordinate's commitment and competence deter­ mines the four developmental levels: enthusiastic beginner, disillusioned learner, capable but cau­ tiou <; performer, and self-rdiant achit>VtT. The

SUMMARY 171

model classifies leadership style according to the relative amounts of supporting and directing the leader engages in. The four styles are different com­ binations of task and relationship behavior, both rated as high versus low: directing, coaching, sup­ porting, and delegating. The most appropriate lead­ ership style corresponds to the subordinate developmental levels. For example, enthusiastic beginners require a directing leader.

The normative decision model explains that leadership is a decision-making process. A leader examines certain contingency factors in the situation to determine which decision-making style will be the most effective in either a time­ driven or developmental situation. The model defines five decision-making styles: two individual styles and three group styles. By answering a series of seven diagnostic questions in a matrix, the manager follows the path to a recommended decision style. The most important take-away from the model is to know when to consult with the group versus making an independent decision.

Leader-member exchange theory provides some insights into contingency leadership. LMX influ­ ences such factors as the favorability of perfor­ mance ratings, which group member receives servant leadership, extent of empowerment, and team member performance.

Leading others through a c1isis can be consid­ ered a form of contingency leadership because the leader adapts his or her style to the situation. In a crisis, leaders should (a) be decisive, (b) lead with compassion, (c) think strategically, (d) reestablish the usual work routine, (e) avoid a circle-the­ wagons mentality, (f) display optimism, (g) prevent the crisis through disaster planning, (h) provide stable performance, and (i) be a transformational leader.

A leading-edge way for a person to practice con­ tingency leadership would be to look for research­ based evidence about the best way to deal with a given situation. This approach means using evidence-ba.,ed leadership or management.

172 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

KEY TERMS

contingency approach to leadership 146

path-goal theory 151

Situational Leadership II (SUI) 155

normative decision model 159

crisis leadership 163 evidence-based leadership or

management 170

u GUIDELINES FOR ACTION AND SKILL DEVELOPMENT 1. A major contingency fador for a team or group

leader is the talent and motivation of the individual being led. Although talented and well-motivated workers may not require close monitoring of their efforts, they still require encouragement and recognition to sustain high performance. Otherwise, the leader has very little impact on their performance or their intention to Eitay a member of the team or group.

2. When practicing the leader-member exchange theory of leadership by forming unique relationships with members of the group, it is important to minimize the potential unintended negative consequences of this type of leadership. For morale purposes, it is important to avoid establishing favorites o r pets in the group, and having only superficial, mechanical relationships with other group members.

3. A subtle way of practicing contingency leadership is to adapt to times that may have changed in terms of the demands of your leadership position. You have to fine-tune your leadership approach to meet the new circumstances. Assume that hospital administrator Maggie has held her position for ten years. According to her perception of her role, the focus of her leadership_ would be to inspire her staff toward doing what is best for patient care. Yet her role has now changed. Focusing on what is good for patients still receives high priority, yet Maggie has to emotionally accept the reality that finding ways to inspire her group to reduce the cost of operating the hospital has become a

key part o f her leadership and management rol~.

Discussion Questions and Activities

1. What relevance might contingency leadership have for dealing with (a) men versus women, and (b) old versus young?

2. Describe how it might be possible for a man­ ager to be charismatic yet also practice contin­ gency leadership.

3. Identify a personality trait you think would help a manager function as a contingency leader. Also identify a trait you think might detract from a manager's ability to function as a contingency leader.

4. How might a leader modify the clothing he or she wore to different work situations to help practice contingency leadership?

5. How would a manager know which variables in a given situation should influence which approach to leadership he or she should take?

6. Which of the four path-goal styles do you think would be the best for managing a group of soft­ ware engineers? Justify your answer.

7. To what extent do you think that battlefield experience would help a person become an effective crisis leader in a business situation?

8. Why are both a task emphasis and a relation­ ship emphasis often necessary to get a group through a crisis, such as a hurricane having destroyed a company facility?

9. To what extent do you think most business lea­ ders will ever use experience-based leadership or management?

10. fn what way do effective teachers practice con­ tingency leadership?

Supervisory Styles at the Red Rascal

Jessica Perez is the manager of a thriving Red Rascal Restaurant, a chain of several hundred mod­ erately priced restaurants throughout the country. Jessica recently returned from a regional conference in which she was informed about a new program of recruiting several developmentally disabled workers to work at each restaurant. The restaurants would work closely with local institutions that provided vocational training for individuals who are intellec­ tually challenged. In many of the communities, these institutions coordinate their effort with both psychology and special education departments at local colleges.

The developmentally disabled workers would be hired into basic positions that fit their capabilities, such as salad chefs, bakers, dishwashing machine attendants, and custodial workers. Restaurant (store) managers would receive training into how to optimize the capabilities of developmentally dis­ abled workers, as well as how to motivate or disci­ pline the workers as needed.

Three months after the program was launched, Jessica's branch had hired three developmentally disabled young adults, all assigned jobs within the kitchen. Jessica spent a little time coaching het­ kitchen supervisors about supervising developmen­ tally disabled workers. She emphasized the impor­ tance of providing clear, uncomplicated directions, and not overwhelming these workers by changing their assignments frequently. As instructed at regional headquarters, Jessica also explained the need to provide positive feedback and encourage­ ment to the intellectually challenged recruits.

The program of hiring a few developmentally dis­ abled kitchen workers appeared to be going generally

ASSOCIATED ROLE PLAY One student plays the role of a supervisor whose responsibility is to show a developmentally chal­ lenged recruit how to prepare a salad in a giant bowl, that will then be divided into single-portion salads as needed.

LEADERSHIP CASE PROBLEM A 173

well at the Red Rasczl. No particular problems with the food prepared by the new workers were found, food preparation was not delayed, and their attendance was satisfactory. Yet as Jessica listened to several of the restaurant associates, the wait staff and kitchen staff included, she heard some grumbling. Head chef Tammy expressed her concerns in these terms: "I'm not exactly sure why this is happening, but these days my supervisor is treating me like I'm 10 years old. She's so condescending, and she tells me what she wants done in tiny details. I asked Mindy (the supervisor) to taste a new salad dressing I prepared. She told me, 'Tammy, I'm so proud of you. You did a great job.' I mean, she's acting like I'm stupid or something.''

Kurt, the host. made a similar comment about Jessica. He said, "All of a sudden you're treating me as if I'm a little slow. You made such a fuss just because my shoes were shined and my shirt was wrinkle free. Are you forgetting that I'm not developmentally challenged/'

Mindy began to think that maybe there were some supervisory style problems at the Red Rascal.

Questions

I. What does the restaurant scenario presented above have to do with contingency leadership?

2. In what ways might Jessica and the supervisors modify their leadership styles to adapt to the differences in intellectual levels of the Red Rascal staff?

3. What is the problem with the kitchen staff and wait staff at the Red Rascal? Should not all workers receive careful instructions, feedback, and encouragement?

Another student plays the role of the twenty­ year-old recruit who has never previously pre­ pared food. Observers should be particularly cog­ nizant if the superdsor is using an effective leadership style.

174 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

Metal Recycling Executive Attempts to Salvage Martha Stewart Living

For several years, Martha Stewart Living Omnia­ media Inc. (MSLO) had been losing money as a media company despite the fame of company founder Martha Stewart. As a result, company management decided to recast itself a merchandis­ ing company, particularly because of its former success in home-decor retailing.

The company had also been involved in a pro­ longed lawsuit between retail chains Macy's and J.C. Penny Co. Macy's filed suit because it contended tl1a1 it had the exclusive right to sell Martha Stewart branded merchandise in certain categories, including bedding and cookware. However, Martha Stewart Liv­ ing also signed an agreement with Macy's competitor J.C. Penney. As part of the settlement, Martha Stewart Living shortened by four years, the length of its con­ tract with J.C. Penney. Also, J.C. Penney agreed not sell certain Martha Stewart products, such as bed and bath products, but would sell others including lighting and rugs.

During these troubled times, MSLO decided to appoint board member Daniel Dienst as Chief Executive Officer (CEO) of the company. Dienst was a metal industry veteran who had recently been CEDO of Sims Metal Management, the largest metal recycler in North America. Dienst had turn­ around experience in the metals industry, plus cor­ porate finance experience from positions he held on Wall Street.

Upon joining MSLO, Dienst said, "I have long been a fan of Martha Stewart, the person and the brand, and believe there is enormous untapped opportunity for this organization and a terrific hase of talented people to help us realize that opportunity." He also mentioned that the company had already embarked on a turnaround plan that is

ASSOCIATED ROLE PLAY One student plays the role of Daniel Dienst, the new CEO of MSLO. Wanting to avoid being scrapped within one year, Dienst takes the initiative to ask why so many senior executives preceding him have

expected to produce good results quickly. Dienst also said, "I look forward to rolling up my sleeves, getting to work, and helping write the next few chapters of this remarkable Company's story."

During the ten years previous to Dienst, six dif­ ferent people served as CEO of MSLO. Other senior executives have departed also, often because they clashed with Martha Stewart, the company founder and nonexecutive chairman.

Questions

1. To what extent do you think Dan Dienst was facing a crisis leadership situation when he was appointed the CEO of the Martha Stewart company?

2. So what leadership steps should Dienst take to begin "rolling up his sleeves?"

3. What steps do you recommend that Dienst take to avoid becoming another senior executive who departs the company?

4. What situational factors might make running a media and merchandise business quite differ­ ent from running a metal recycling company?

5. Based on current media reports, how success­ ful has Dienst been in turning around MSLO?

Source: Original case based on facts and observations pre­ sented in the following sources: TNM Staff, "Metal Recy­ ding Executive Becomes New CEO Of Martha Stewart Living Omnimedia," Talking News Media (www.talking newsmedia.com), October 29, 2013 , pp. 1-4; Jeffrey A. Trachtenberg, "Martha Stewart's New CEO Is a Scrap­ Metal Expert," The Wall Street Journal, October 29, 2013, pp. Bl-B2; Crayton Harrison and Sarah Frier, "Martha Stewart Appointment of Dienst as CEO Signals Cuts," Bloomberg (www. Bloomberg.com), October 29, 2013, pp. 1-2.

left the company. He is concerned that Stewart might be a domineering personality who likes to micromanage her senior executives. Dienst schedules a lunch with Stewart at a high-class restaurant to

discuss the situation. Stewart recognizes that she is a household name and believes that her charm, creativ­ ity, and superior leadership skills make her an

My Leadership Portfolio

For this chapter entry in your leadership portfolio, visualize two different leadership scenaiios that you witnessed directly, read about, or saw on television or in a movie. Think through how you would have used a different leadership approach for each one if you had been the leader. To illustrate, suppose you had passed a construction site for a skyscraper and noticed that the crane operator seemed confident and competent. You might conclude, "In this situa­ tion, I would have used a delegating style of leadership

Crisis Leadership

Working in a small group, find a crisis that a busi­ ness or not-for-profit organization is facing these days . Examples would include a pharmaceutical firm needing to recall an over-the-counter medicine that has triggered illnesses in hundreds of consu­ mers, or an investment banking firm in which

I . Original story based on facts a11d observations in the following sources: Anne VanderMey, "Detroit's Benevolent Dictator," CNNMoney, (http://features.blogs.fortune.com), July 23, 2013, pp. 1-2; Allysia Finley, "How Detroit Can Rise Again ," The Wall Street Journal, August · 3-4, 2013, p . Al 1; Daniel Howes, "Status Quo Won't Avoid Bankruptcy," detroitnews.com, October 18, 2013, pp. 1-3; Matt Wirz and Emily Glazer, "European Banks Hold Out on Detroit," The Wall Stm 1t Journal, October 3, 2013, pp. Cl, C4.

NOTES 175

excellent boss for any executive who can obtain good business results. Observers will provide feedback as to whether the meeting has been productive.

with the crane operator because she was so self­ sufficient. Yet I would still have given her some rec­ ognition for a job well done at the end of her shift."

Another scenario might be that you witnessed a bloody fight at a professional hockey match. You might conclude, "In this situation, I would be as directive as possible. I would suspend and fine the players, with no room for negotiation. Decisive action must be taken to quell violence in profes­ sional sports."

several key executives have been accused of insider trading. After agreeing on which crisis to tackle, develop a list of suggestions on how the CEO should deal with the situation. Use several ideas from the section about crisis leadership presented in this chapter to help you develop an action plan.

2. "Surprising and Effective Ctu-e for Today's Biggest Workplace Crisis," Executive Focus, September 2004, p. 21.

3. Victor H. Vroom and Arthur G. Jago, "The Role of the Situation in Leadership," American Psychologist, January 2007, pp. 6-16.

4. Henry Mintzberg, Managing (San Francisco: Berrett-Koehler Publishers, 2009), pp. 106-107.

5. Cited in Karen Barrow, "Mindfulness Lets Leaders See More Possibilities," Democrat and Chronicle (Rochester, New York), January 18, 2009, p. 2E.

176 CHAPTER 5 • CONTINGENCY AND SITUATIONAL LEADERSHIP

6. For a synthesis of contingency theory by one of its key researchers, see Martin M. Chemers, An integrative Theory of Leadership (Mahwah, N.J.: Erlbaum, 1997), pp 2838. See also Bernard M. Bass (with Ruth Bass), The Bass Handbook of Leadership: Theory, Research, and Managerial Applications, Fourth Edition (New York: The Free Press, 2008), pp. 522-527.

7. Vroom and Jago, "The Role of the Situation," p. 20.

8. Robert J . House, "A Path-Goal Theory of Leader Effectiveness," Administrative Science Quarterly, September 1971, pp. 321-328: Robert T. Keller, "A Test of the Path-Goal Theory with Need for Clarity as a Moderator in Research and Development Organizations,'' Journal of Applied Psychology. April 1989, pp. 208-212; Robert J. House and Terence R . Mitchell, "Path-Goal Theory of Leadership," Journal of Contemporary Business , Autumn 1974, pp. 81-97.

9. Vroom and Jago, "The Role of the Situation," p. 20.

10. Robert House, "Path-Goal Theory of Leadership: Lessons, Legacy , and a Reformulated Theory," Leadership Quarterly, vol. 7, no. 3, 1996, p. 348.

11. Quoted in Jeff Bercovici, "The Power of the Packers: How Tiny Green Bay Became the NFL's Most Improbable Financial Juggernaut," Forbes, September 20, 2011, p. 90.

12. "Packers' CEO Conveys Keys Lo Leadership Success," University ofWisconsin-Parkside (http://www.uwp.edu/explore/media/), April 5, 2013, p. 1.

13. House and Mitchell, "Path-Goal Theory," p. 84: Bass, The Bass Handbook o( Leadership, pp. 804-81 J .

14. Chemers, An Integrative Theory of Leadership, p. 48.

15. Kenneth H. Blanchard, David Zigarmi, and Robert Nelson, "Situational Leadership After 25 Years: A Retrospective," Journal of Leadership Studies, vol. 1, 1993, pp. 22-26; Kenneth Blanchard and Robert Nelson, "Recognition and Reward," Executive Excellence, vol. 14, no. 4, 1997, p. 15; "Building Materials Leader Builds Better Leaders," kenblanchard.com/casestudies/certainteed.pdf, accessed November 26, 2004.

16. Victor H. Vroom, "Leadership and the Decision­ Making Process," Organizational Dynamics,

vol. 28, Spring 2000, pp. 82-93; Victor H. Vroom, "Educating Managers in Decision Making and Leadership," Management Decision, vol. 10, 2003 , pp. 968-978.

17. "The Vroom-Yetton-Jago Decision Model: Deciding How to Decide," Mind Tools (www.mindtools.com), Mind Tools Ltd, 1996-2013.

18. The first two statements are based on Li Ma and Qing Ou, "Differentiation in Leader­ Member Exchange: A Hierarchical Linear Modeling Approach," Leadership Quarterly, October 2010, pp. 733-744.

19 . The second two statements are based David J . Henderson, Robert C. Liden, Brian C. Glibkowski, and Anjali Chaudrhy, "LMX Differentiation: A Multilevel Review and Examination of Its Antecedents," Leadership Quarterly, August 2009, pp. 517-534.

20. Kenneth J. Harris, Anthony R. Wheeler, and K. Michele Kacmar, "Leader-Member Exchange and Empowennent: Direct and Interactive Effects on Job Satisfaction, Turnover Intentions, and Performance," Leadership Quarterly, June 2009, p. 399.

21. Pascale M. Le Blanc and Vicente Gonzalez­ Roma, "A Team Level Investigation of the Relationship Between Leader-Member Exchange (LMX), and Commitment and Performance," The Leadership Quarterly, June 2012, pp. 534-554.

22. Robin Kielkowski, "Leadership During a Crisis," Journal of Leadership Studies, no. 3, 2013, p. 65.

23. Ronald Heifetz, Alexander Grashow, and Marty Linsky, "Leadership in a (Permanent) Crisis," Harvard Business Review, July-August 2009, p. 64.

24. Chris Warner and Don Schmincke, High Altitude Leadership: What the World's Forbidding Techniques· Teach Us About Success (San Francisco: Jossey-Bass, 2009), p. 6.

25. Observation of Bill George reported in Alan MmTay, The Wall Street Journal Essential Guide 10 Management (New York: Harper Business, 2010), p. 18.

26. Leslie A. DeChurch, C. Shawn Burke, Marissa. L. Shuffler, Rebecca Lyons , Daniel Doty, and Eduardo Salas, "A Historiometric Analysis of Leadership in Mission Critical Multiteam Environments," The Leadership Quarterly, Febrnary 2011, pp. 152-169.

27. Suzanne Koudsi, "How to Cope with Tragedy," Fortune , October 1, 2001, p. 34.

28. Neil Simon, "Crisis Management: Department of Interior, Department of Labor," Hispanic Business, October 2010, p. 43.

29. Barbara Baker Clark, "Leadership During a Crisis," Executive Leadership, December 2001, p. 8.

30. Quoted in Ben Casselman and Guy Chazan, "Disaster Plans Lacking at Deep Rigs," The Wall Street Journal, May 18, 2010, p. lA.

31. "Lead in the 21st Century: An Interview with Societe Generale's Frederic Oudea," WWW .mckinsey.com, November 2013, p. 1.

32. Jia Lynn Yang, "A Recipe for Consistency." Fortune, October 29, 2007, p. 58.

NOTES 177

33. Erika Hayes James and Lynn Perry Wooten, "How to Display Competence in Times of Crisis," Organizational Dynamics, vol. 34, no. 2, 2005, p. 146.

34. Demis M. Rousseau, "Presidential Address: Is There Such a Thing as 'Evidence-Based Management'?" The Academy of Management Review, April 2006, pp. 256-269; Wayne F. Cascio, "Evidence-Based Management and the Marketplace for Ideas," Academy of Management Journal, October 2007, pp. 1009-1012.

35. Quint Studer, "Evidence-Based Leadership," Studer Group (www.studergroup.co m), January 14, 2008.