MGT 411 – Exam 1
Module/Chapter 1 – Defining Leadership
oLeadership is Important – “We’re going to see leadership emerge as the most important element in
business – the attribute that is highest in demand and shortest in supply.” – Tom Peters
oLeadership is Difficult – 82% of organizations report “having a hard time finding qualified leaders”
Visionary Figurehead Liaison Planner
Role Model Teacher Negotiator Spokesperson
Director Communicator Motivator Problem Solver
Networker Appraiser Decision Maker Change Leader
Organizer Rewarder Approver Disturbance Handler
Coach Innovator Controller Resource Allocator
Expert Implementer Inspirer Standard Setter
o2012 – US Spent $22 billion on leadership development
oExceptional Leaders – The Extraordinary Leader, Zenger & Folkman
Bottom 20% Middle 60% Top 20%
Turnover 18% 14% 9%
Customer Satisfaction 21% 50% 82%
Intention to Stay 19% 51% 79%
Net Profit -1.17M 2.38M 4.51M
o“Leadership” – influence based relationship among leaders and followers who intend real changes and
outcomes that reflect their shared purposes
oInfluencing others – to come together around a common vision: Multidirectional, noncoercive
oReciprocal – in nature
oInvolves creating change
oQualities required for effective leadership are also needed to be an effective follower
o“Leader” – A person who influences others to get things done
Significant accomplishment
Have followers
Don’t do the work
oThe New Reality for Leaders – “We’re in a brawl with no rules” – Tom Peters
oParadigm – Shared mindset that represents a fundamental way of thinking about, perceiving, and
understanding the world
From Old Paradigm Leader To New Paradigm Leader
Stabilizer Change Manager
Controller Facilitator
Competitor Collaborator
Diversity Avoider Diversity Encourager
Hero Humble
oChallenging External Environment
oVolatile
oUncertain
oComplex
oAmbiguous
Vision
Understanding
Clarity
Agile
oOrganization Defined – Leader’s function within an organization.
o“A group of people who work together to achieve some specific purpose”
o“Two or more people with a common goal”
o“Organization” Purpose
oNo organization can depend on genius; the supply is always scarce and unreliable. It is the test of an
organization to make ordinary human beings perform better than they seem capable of, to bring out
whatever strength there is in its members, and to use each one’s strength to help all the others
perform. The purpose of an organization is to enable common people to do uncommon things.”-
Peter Drucker
oThe Fundamental Five
oGuardian – establish TRUST
oNavigator – clarify PURPOSE
oCoach – strengthen PEOPLE
oArchitect – build the TEAM
oRevolutionary – lead CHANGE
oThe Functions of Management
oPlanning – decide on the big plan
oOrganizing – arrange people and work
oDirecting – influence people to get things done
oControlling – ensure we’re doing what we want
oHenry Mintzberg
oGraduate student in 1960’s
oSaw busy, interrupted people. Not a lot of planning, organizing, directing, controlling
oThe work of management wasn’t very clear
oJohn Kotter – What Leaders Really do
Managers:
-keep things the same
-doing things right
-efficiency
Leaders:
-change things
-doing the right things
-effectiveness
Planning and budgeting Setting direction
Organizing and staffing Aligning people
Controlling & solving problems Motivating and inspiring
oJohn Kotter – Comparing Management and Leadership
Management Leadership
Direction: - Plan and budget
-Minimize risk for sure results
-Focus on bottom line
-Create vision and strategy
-Maximize opportunity
-Keep eye on horizon
Alignment: - Organize and staff
-Direct and control
-Create structure and order
-Create shared culture and values
-Provide learning opportunities
-Encourage networks and flexibility
Relationships: - Invest in goods
-Use position power
-Focus people on specific goals
-Invest in people
-Use personal influence
-Inspire with purpose and trust
Personal Qualities: - Emotional distant
-Expert mind
-Conformity
-Insight into organization
-Emotional connections (heart)
-Open mind (mindfulness)
-Listening (communication)
-Nonconformity (courage)
-Insight into self (character)
Outcomes: - Maintain stability; create a culture of -Create change and a culture of agility
efficiency and integrity
oManagement – attainment of organizational goals in an effective and efficient manner through:
oPlanning and organizing
oStaffing and directing
oControlling organizational resources
oVision (leadership) – picture of an ambition, desirable future for the organization or team
Video “The Perils of Confusing Management with Leadership” – John Kotter
oLeadership Evolution – “Eras”
Scop
e
Environment
Stable Turbulent
Organizatio
n
Era 2 – Rational Management
-Behavior Theories
-Contingency Theories
Organization:
-Vertical hierarchy, bureaucracy
-Functional management
Era 3 – Team or Later Leadership
-Influence theories
Organization:
-Horizontal organization
-Cross-functional teams
Individual
Era 1 – Great Person Leadership
-Great Man theories
-Trait theories
Organization
-Pre-bureaucratic organization
-Administrative principles
Era 4 – Learning Leadership
-Relational theories
-Level 5 leadership
Organization:
-High-performance culture
-Shared vision, alignment
-Facilitate change and adaptation
“Era 1” – Andrew Carnegie, Rockefeller’s (people were born to be leaders)
oGreat man theories – leadership was conceptualized as a single Great Man who put everything
together and influenced others to follow along based on the strength of inherited traits, qualities, and
abilities
oTrait theories – leaders had particular traits or characteristics that distinguished them from non-
leaders and contributed to success
“Era 2”
oBehavior theories – leaders’ behavior correlated with leadership effectiveness or ineffectiveness
oContingency theories – leaders can analyze their situation and tailor their behavior to improve
leadership effectiveness
Known as situational theories
Emphasized that leadership cannot be understood in a vacuum separate from various elements of
the group or organizational situation
“Era 3”
oInfluence theories – examined the influence process between leaders and followers
Charismatic leadership – influence based on the qualities and personality of the leader
“Era 4”
oRelational Theories – focused on how leaders and followers interact and influence one another
Transformational leadership and servant leadership are two important relational theories
o“Agile Leader” – a leader who is open to learning and change and encourages growth and development of
others. Needed by Era 4
oDerailment – phenomenon wherein individuals can’t advance further because of a mismatch between job
needs and their personal skills and qualities. Center of North Carolina – 5 most significant derailers
oDerailment and “Fatal Flaws”
oPerformance Problems – failing to meet business objectives because of too much time
promoting themselves and playing politics, a failure to fulfill promises, or a lack of hard work
oProblems with relationships – being insensitive, manipulative, critical, and not trustworthy in
relationships with peers, direct reports, customers, and others
oDifficulty changing – not learning from feedback and mistakes to change old behaviors.
Defensive, unable to handle pressure, and unable to change managing style to meet new
demands
oDifficulty building and leading a team – poor management of direct reports, inability to get
work done through others not identifying and hiring the right people
oToo narrow management experience – inability to work effectively or collaborate outside their
current function. Failing to see big picture when moved into general management position over
several functions
oFatal Flaws really… “Fatal?”
oDerailment/ “fatal flaws” weaknesses
oLeadership can be learned
o“Exceptional Leadership” – “2 of 5 with no fatal flaws” (Guardian, Navigator, Coach, Architect,
Revolutionary)
Module/Chapter 2 – Leadership Theory
o“Theory” – an idea that predict or explains
oTrait Theories – leaders have personal characteristics that non-leaders do not have
o“Great Man”: inherited traits, qualities, and abilities
tall, white, rich, intelligent, men
o“Trait Theory” – inherited or learned traits, qualities, and abilities
oTraits
oPersonal characteristics – energy, passion, humility, physical stamina
oIntelligence and Ability – intelligence, cognitive ability, knowledge, judgment, decisiveness
oPersonality – optimism, cheerfulness, self-confidence, honesty, integrity, charisma, desire to lead,
independence
oSocial Characteristics – sociability, interpersonal skills, cooperativeness, ability to enlist
cooperation, tact, diplomacy
oWork-related Characteristics – drive, desire to excel, dependability, fair-mindedness, perseverance,
tenacity
oSocial Background – education, mobility
oCharacteristics of Leaders
oOptimism – tendency to see the positive side of things and expect that things will turn out well
oSelf-confidence – assurance in one’s own judgements, decision making, ideas, and capabilities
oHonesty – refers to truthfulness and nondeception
oIntegrity – quality of being whole, integrated, and acting in accordance with solid ethical principles
oDrive – high motivation that creates a high effort level by a leader
oStrengths – natural talent or ability that has been supported and reinforced with learned knowledge and
skills
oThree Leadership Roles
Video: US Marine Corps Leadership Traits
oHawthorne Experiments
oTook place at the Hawthorne Electric plant near Chicago
oContributed to the development of behavior leadership theories
oPeople behave differently when they know they are being observed
oPeople like to be noticed
oBehavior Theory – leaders behave in certain ways that non-leaders do not
oTask Oriented (results, productivity)
oPeople Oriented (relationships, people)
oBehavior Approaches – University of Iowa by Kurt Lewin
oAutocratic – centralizes authority and derived power form position, control of rewards, and
coercion
oDemocratic – delegates authority, encourages participation, relies on subordinates for completion
of tasks, and depends on subordinate respect for influence
Effective if subordinates possess decision-making skills
Effective when the skill difference between the leader and subordinates is high
o
oUniversity of Michigan Studies
oEmployee-centered – leadership behavior that displays a focus on the human needs of
subordinates
oJob-centered – leadership behavior in which leaders direct activities toward efficiency, cost cutting,
and scheduling
oOhio State Studies
oDeveloped and administed the Leader Behavior Description Questionnaire (LBDQ) to employees
o– Resulted in:
Consideration: extent to which a leader is sensitive to subordinates, respects their ideas and
feelings, and establishes mutual trust
Initiating Structure – extent to which a leader is task oriented and directs subordinates’
work activities toward goal achievement
oLeader Behavior Research Themes
oBlake & Mouton’s Leadership Grid – 2-dimensional leadership model that describes major leadership
styles based on measuring both concern for people and concern for production
oIndividualized Leadership – the idea that a leader develops a unique relationship with each group member,
determining:
oLeader’s behavior toward the member
oMember’s response to the leader
oStages of Development – Individualized Leadership
o1. Vertical Dyad Linkage – leaders’ behavior and trait have different effects across followers,
creating in-groups and out-groups
o2. Leader-Member Exchange – leadership is individualized for each subordinate. Each dyad involves
unique exchange independent of other dyads.
o3. Partnership Building – leaders can reach out to create a positive exchange with every
subordinate. Doing so increases performance
o1. Vertical Dyad Linkage (VDL) Model – argues for the importance of the dyad formed by a leader with
each member of the group
oIn group-relationship – seen among members with whom leaders spend a disproportionate
amount of time
oOut-group relationship – seen among members of the group who did not experience a sense of
trust and extra consideration
oLeader Behavior Toward In-Group versus Out-Group Members
o2. Leader-Member Exchange (LMX) – explores how leader-member relationships develop over time and
how the quality of exchange relationships affects outcomes. Higher-quality relationship will lead to higher
performance – leading to greater job satisfaction for in-group members
o3. Partnership Building – leaders strive to develop a positive relationship with each subordinate
opositive relationships will have a different form for each person
oPerformance and productivity gains can be achieved if the leader develops positive relationships
with each subordinate
Module/Chapter 3 – Contingency Theory
oContingency – Theory meaning one things depends on other things
oContingency Approaches – seek to delineate the characteristics of situations and followers and examine
the leadership styles that can used effectively
oUniversalistic Approach – Leadership Traits/ Behaviors Outcomes (performance, satisfaction, etc.)
oContingency Approach – situational
oLeader: style, trains, behavior, position
oSituation: task, structure, systems, environment
oFollowers: needs, maturity, training, cohesion
o Outcomes (performance, satisfaction, etc.)
oSituational Theory: Hersey & Blanchard – focuses on the characteristics of followers as the important
element of the situations, and consequently, of determining effective leader behavior. Subordinates vary in
readiness level Willing + Able = Readiness. D4-D1
oDirecting Style – reflects a high concern for tasks and a low concern for people and
relationships
oCoaching Style – based on a high concern for both relationships and tasks
oSupporting Style – characterized by high relationship and low task behavior
oEntrusting Style – reflects a low concern for both tasks and relationships
Video: Ken and Scott Blanchard – situational leadership II
oFiedler’s Contingency Model – designed to diagnose whether a leader is task-oriented or relationship-
oriented and match leader style to the situation
oRelationship-oriented: concerned with people, establishes mutual trust and respect, listens to
employees’ needs
oTask-oriented: primarily motivated by task accomplishment
oMeasured with a least preferred coworker (LPC) scale
Very favorable – intermediate – very unfavorable
oSituation
oLeader-member relations: group atmosphere and member’s attitudes toward and acceptance
of the leader
oTask structure: extent to which tasks performed by the group are defines, involve specific
procedures, and have clear, explicit goals
oPosition power: extent to which the leader has formal authority over subordinates
oPath-Goal Theory – contingency approach to leadership in which the leader’s responsibility it to
increase subordinates’ motivation
oby clarifying the behaviors necessary for task accomplishment and rewards
oLeader Roles
o
oSupportive Leadership – shows concern for subordinates’ well-being and personal needs.
oLeadership behavior is open, friendly, and approachable, and the leader creates a team climate
and treats subordinates as equals
oDirective Leadership – tells subordinates exactly what they are supposed to do
oLeader behavior includes planning, making schedules, setting performance goals and behavior
standards, and stressing adherence to rules and regulations
oSituational Theory
oPersonal characteristics of group members: ability and skills, needs and motivations
oWork environment: degree of task structure, nature of the formal authority system, work group
itself
oPath-Goal Situations and Preferred Leader Behaviors
o
oSubstitutes for Leadership
oSubstitute – situational variable that makes leadership unnecessary or redundant
oNeutralizer – situational characteristics that counteracts the leadership style and prevents the
leader from displaying certain behaviors
o
