CHAPTER 1: NATURE AND IMPORTANCE OF LEADERSHIP

Objectives 

 Explain the meaning of leadership, and how it differs from management.  Pinpoint several
important leadership roles. 
 Identify the major satisfactions and frustrations associated with the leadership role. 
 Pinpoint several traits, behaviors, and attitudes of a successful follower.

Keywords

 Leadership - The ability to inspire confidence and support among the people who are needed to
achieve organizational goals 
 Leadership Effectiveness - Attaining desirable outcomes such as productivity, quality, and
satisfaction in a given situation 
 Emergent Leaders - A group member who significantly influences another group member even
though he or she has not been assigned formal authority 
 Substitutes for Leadership - Factors in the work environment that provide guidance and
incentives to perform, making the leader's role almost superfluous

1. The Meaning of Leadership

Leadership has been defined in many ways but mainly about influencing, motivating, and working
towards common goals. It was also said that leadership is not only found among highlevel positions, it is
needed at all organizational levels and can be practiced by someone without formal leadership position.
A member without assigned formal authority and who is significantly influence other group members is
called an emergent leader

It gets even rarer at the highest levels of the organizations due to the complexity of such positions
requires an immense range of leadership skills. This is why companies invests so much on leadership
training and development and recruitment of leaders with proven track records.

2. Components of Leadership

Leadership involves influence

 which means the leader should have the capacity to have an effect on the character,
development, or behavior of the person being lead.

Leadership involves intention

 s intention or plan or other actions which involves making a decision

Leadership involves personal responsibility and integrity,

 honest not lie

Leadership involves change

 Change is inevitable, it may be good or bad

Leadership is about shared purpose.

Leadership involved followers

3. Leadership as Shared Responsibility

Leadership is a shared responsibility and collaboration, it is not just a sole responsibility of one person.
Several individuals within the team may serve as leaders, both formal and informal assignments.
Leadership shifts depending on whose skills and expertise is the most relevant in a given situation.
Leadership is also a relationship between the leader and the people being led.

4. Leadership versus Management

Figure 1-2 Comparing Management and Leadership (Daft, 2018) To understand leadership, it is
important to grasp the difference between leadership and management. Figure 1-2 summarizes the
differences between a managing and leading. Are all managers leaders? Because leading is one of the
four management functions, yes, ideally, all managers should be leaders. According to DuBrin (2015),
leadership deals with the interpersonal aspects of a manager’s job, whereas planning, organizing, and
controlling deal with the administrative aspects. Leadership deals with change, inspiration, motivation,
and influence.

5. Leadership Roles

A common thread in the leadership roles of a manager is that the managerial leader in some ways
inspires or influences others. One analysis concluded that the most basic role for corporate leaders is to
release the human spirit that makes initiative, creativity, and entrepreneurship possible. An important
implication of these roles is that managers at all levels can and should exert leadership. A role is an
expected set of activities or behaviors stemming from the job. The ten leadership roles covered here
are:
 6. Satisfactions and Frustrations of Being a Leader

The term leader has a positive connotation for most people. To be called a leader is generally better
than to be called a follower or a subordinate. Some leadership jobs are more fun than others, such as
being the leader of a successful group with cheerful team members. Here are some satisfactions of
being a leader:

a) A feeling of power and prestige.

b) A chance to help others grow and develop.

c) High income.

d) Respect and status.

e) Good opportunities for advancement.

f) A feeling of “being in on” things.

g) An opportunity to control money and other resources

7. A Framework for Understanding Leadership

Leadership effectiveness equals combined influence of three sets of factors

Leader characteristics behaveior and style

Group member characteristics and behavior

Ccontext nternal and ecternal environment

8. 8.Followership: Being an Effective Group Members

To be an effective leader, one needs good followers. Leaders cannot exist without followers. Leaders are
also followers and followers also exhibit leadership.

Thinking styles involves critical versus uncritical thinking. Critical thinking involves thinking
independently and being mindful of the effects of one’s own and other people’s behavior on achieving
the organization’s vision. On the other hand, uncritical thinking is about failing to consider possibilities
beyond what one is told and will be just accepting the leader’s ideas without thinking.
Chapter 2: Traits, Motives, and Characteristics Of Leadership

Objectives 

 Identify general and task-related traits that contribute to leadership effectiveness.

  Describe how emotional intelligence contributes to leadership effectiveness.
  Identify key motives that contribute to leadership effectiveness.
  Describe cognitive factors associated with leadership effectiveness.
  Discuss the heredity versus environment issue in relation to leadership effectiveness.

Keywords 

 Locus of control – defines whether a person places the primary responsibility for what happens
to him or her within himself/herself or on outside forces
  Self-esteem – deals with feeling positive toward the self.
  Generalized self-efficacy – means roughly the same thing as being self-confident in many
situations.
  Emotional stability – refers to having emotional control, not being neurotic, and having good
mental health.
  Values – fundamental beliefs that an individual considers to be important, that are relatively
stable over time, and that have an impact on attitudes and behavior.
  Assertiveness – refers to being forthright in expressing demands, opinions, feelings, and
attitudes.
  Emotional intelligence - refers to qualities such as understanding one’s feelings, empathy for
others, and the regulation of emotions to enhance living 
 Drive – refers to a propensity to put forth high energy into achieving objectives and to
persistence in applying that energy. 
 Achievement motivation – means finding joy in accomplishment for its own sake. 
 Tenacity - the quality or fact of being very determined 
 Resilient - able to withstand or recover quickly from difficult conditions. 
 Insight – a depth of under-standing that requires considerable intuition and common sense 
 Farsightedness – the ability to understand the long-range implications of actions and policies. 
 Conceptual thinking – refers to the ability to see the overall perspective and makes
farsightedness possible.

1. Personality traits of effective leaders

DuBrin (2015) classified personality traits into two parts: the general and task-related personality traits.
The general personality trait is defined as a trait that is observable both within and outside the context
of work, while the task-related traits are characteristics that contributed to accomplishing a task.

General traits that are related to success and satisfaction in both personal and work life. Figure 2.1
below shows the nine general traits that contributed to leadership effectiveness in many situations.
  Self-confidence
 Humility
 Core self-evaluations
o Locus of control defines whether a person places the primary responsibility for what
happens to him or her within himself/herself or on outside forces (daft 2018).
o ii. Self-esteem deals with feeling positive toward the self. iii.
o Generalized self-efficacy means roughly the same thing as being self-confident in many
situations.
o iv. Emotional stability refers to having emotional control, not being neurotic, and having
good mental health.
 Trustworthiness
 Extraversion
 Assertiveness
 Enthusiasm, optimism, and warmth
 Sense of humor

2. Leadership motives

Leaders can be differentiated from non-leaders and ineffective leaders in terms of their motives and
needs. The motives described here are task-related

3. Cognitive factors and leadership

Cognitive intelligence

Creative

4. The influence of heredity and environment on leadership

According to Kirkpatrick & Locke (1991), leadership theories in the 19th and 20th century asserted that
leadership qualities are inherited specially by people from the higher class. Eventually leadership
theories evolved into trait theories, these theories did not make assumptions about whether leadership
traits were inherited or acquired but rather asserted that leaders’ characteristics are different from non-
leaders. Regardless of whether leaders are born or made, or some combination of both, it is clear that
leaders are not like other people. Leaders do not need to be great men or women, but they do need to
have the ‘right stuff’ & this stuff is not equally present in all people.
 5. Summary

The trait approach to leadership is supported by many studies showing that leaders are different from
non-leaders, and that effective leaders are different from less effective leaders. Nevertheless, the trait
approach does not tell us which traits are most important in which situations or how much of a trait is
required. Also, different situations call for different combinations of traits.

A video will be presented in class to summarize this given chapter. It is about a small company, Numi
Tea, and its changing environment and their new manager. The traits and characteristics of the new
manager were laid out by her colleagues and explained how these traits lead to effective leadership in
challenging times.

Chapter 3: Charismatic and Transformational Leadership

Objectives

 Describe many of the traits and behaviors of charismatic leaders. 

 Explain the visionary component of charismatic leadership. 
 Explain the nature of transformational leadership. 
 Identify several of the impacts of charismatic and transformational leadership on performance
and behavior.

Keywords

 Charisma - A special quality of leaders whose purposes, powers, and extraordinary

determination differentiate them from others. 
 Vision - the ability to imagine different and better future conditions and ways to achieve them 
 Mission - purpose, and reason for being 
 Transformational Leadership - Leadership based on the ability to bring about significant change
in both followers & the organization 
 Transactional Leadership - Leadership based on a transaction / exchange process between
leaders & followers 
 Empowerment – An authority or power given to someone to do something

Key Contents

The study of charismatic and transformational leadership, an extension of the trait theory, has become
an important way of understanding leadership.

1. Types of Charismatics Leaders

Charisma is a special quality of leaders whose purposes, powers, and extraordinary determination
differentiate them from others. The attributes of charisma are important because they lead to
behavioral outcomes such as commitment to the leader, selfsacrifice, and high performance. Much of
the impact of charisma is based on the positive affect (emotion) the charismatic leader triggers among
group members. Charismatic leaders can be categorized into various types, with the three most relevant
for today described here: socialized charismatics, personalized charismatics, and celebrities.

 Socialized Charismatic – This is a type of leader who confines the use of power in order to
benefit others. This type of leader also attempts to bring group members’ values in line with his
or her values. The socialized charismatic formulates and pursues goals that fulfill the needs of
group members and provide intellectual stimulation to them.

Their followers have a clear sense of self and values. The effect of the socialized charismatic on followers
provides more insight into this type of charismatic. 

 Personalized charismatic – These type of leaders serve primarily their own interests and so
exercise few restraints on their use of power. Personalized charismatics impose self-serving
goals on constituents, and they offer consideration and support to group members only when it
facilitates their own goals. Followers of personalized charismatics are typically obedient,
submissive, and dependent. They also identify more with the leader than the leader’s message
and therefore might follow the leader down an unethical path. 

 Celebrity charismatic – This type of leader can be found in organizational life as well as in the
political and entertainment realms. Charismatic people of this type may overlap with the other
types such as being socialized and personalized. An example of this type of charismatic leader
would be Carly Fiorina, the former Hewlett-Packard CEO and one-time candidate for U.S.
Senator, she was often accused of being more interested in personal fame than taking care of
the internal operations of Hewlett-Packard.

5. Transformational Leadership

The focus of transformational leadership is on what the leader accomplishes rather than on the leader’s
personal characteristics and relationships with group members. The transformational leader helps bring
about major, positive changes. In contrast, the transactional leader focuses on more routine
transactions, with an emphasis on rewarding group members for meeting standards. To accomplish his
or her lofty purposes, the transformational leader attempts to overhaul the organizational culture or
subculture. Ten ways in which the leader brings about such transformations are:

 Raising people’s awareness. The transformational leader makes group members aware of the
importance and values of certain rewards and how to achieve them.
 b. Helping people look beyond self-interest. The transformational leader helps group members
look to the big picture for the sake of the team and the organization.
 c. Helping people search for self-fulfillment. The transformational leader helps people go
beyond a focus on minor satisfactions to a quest for self-fulfillment. Related to helping people
search for self-fulfillment is for transformational leaders to help workers understand how their
values fit the values of the organization (person– organization value congruence).
 d. Helping people understand the need for change. The transformational leader must help group
members understand the need for change both emotionally and intellectually. The problem is
that change involves dislocation and discomfort. An effective transformational leader recognizes
this emotional component to resisting change and deals with it openly. e. Investing managers
 with a sense of urgency. To create the transformation, the leader assembles a critical mass of
managers and imbues in them the urgency of change. The managers must also share the top
leader’s vision of what is both necessary and achievable.
 f. Committing to greatness. By adopting greatness attitude, leaders can ennoble human nature
and strengthen societies. Greatness encompasses striving for business effectiveness such as
profits and high stock value, as well as impeccable ethics.
 g. Adopting a long-range perspective and at the same time observing organizational issues from
a broad rather than a narrow perspective. Such thinking on the part of the transformational
leader encourages many group members to do likewise. Unless many people think with a future
orientation, and broadly, an organization cannot be transformed.
 h. Building trust. Another useful process for transforming a firm is to build trust between
leaders and group members, particularly because distrust and suspicion are rampant during a
company revival. It was mentioned in Characteristics of Charismatic Leaders that inspiring trust
is very good way to influence people.
 i. Facilitating proactive behavior. By being proactive, subordinates take the initiative to bring
about positive change. Proactive behavior is facilitated by giving group members more
autonomy, or the opportunity to make decisions independently.
 j. Concentrating resources on the areas that need change the most. The turnaround artist or
transformational leader cannot take care of all problems at once in a troubled organization. A
practical strategy is to get around limitations on funds, staff, or equipment by concentrating
resources on problem areas that are most in need of change and have the biggest potential
payoff.

Chapter 4: Leadership Behaviors, Attitudes, and Styles

Objectives

 Describe task-oriented and relationship-oriented leadership behaviors and attitudes.

  Explain how leaders use 360-degree feedback to improve their performance.
  Describe the participative and autocratic leadership styles.
  Present the case for the entrepreneurial style of leadership and for gender differences in
leadership style.

Keywords

 Effective Leader - one who helps group members attain productivity, including high quality and
customer satisfaction, as well as job satisfaction. Leadership effectiveness is typically measured
by both objective data and subjective data in terms of judgments by others
  Task-related - means that the behavior, attitude, or skill focuses more on the task to be
performed than on the interpersonal aspect of leadership.
  Pygmalion Effect - The situation that occurs when a managerial leader believes that a group
member will succeed and communicates this belief without realizing it.
  Management Openness - A set of leadership behaviors particularly relevant to subordinates’
motivation to voice their opinion. 
 Servant Leader – The one who serves constituents by working on their behalf to help them
achieve their goals, not the leader’s own goals.  360-Degree Feedback - A formal evaluation of
 superiors based on input from people who work for and with them, sometimes including
customers and suppliers.
  Leadership Style - The relatively consistent pattern of behavior that characterizes a leader. 
 Participative Leaders - A person in charge who shares decision making with group members. 
 Laissez-Faire Leadership Style - the French term for “let do” means giving a group freedom to
make decisions and to complete work  Autocratic Leaders - A person in charge who retains
most of the authority for himself or herself.  Leadership Grid™ - A framework for specifying the
extent of a leader’s concern for the production and people.

Key Contents

This chapter contains basic understanding of leadership behavior and attitudes, as well as styles. The
discussion in this chapter contains information about leadership behaviors and attitudes that served as
the basis for studies of leadership styles and contingency theories (Chapter 5) of leadership. Frequent
reference made in this chapter to effective leadership.

Autocratic Leadership

In contrast to participative leaders are autocratic leaders, who retain most of the authority. They make
decisions confidently, assume that group members will comply, and are not overly concerned with
group members’ attitudes toward a decision. Autocratic leaders are considered task-oriented because
they place heavy emphasis on getting tasks accomplished. Typical autocratic behaviors include telling
people what to do, asserting authority, and serving as a model for team members. However, to be
described as autocratic does not necessarily mean the leader is impulsive or stubborn.

Entrepreneurial Leadership

Many entrepreneurs use a similar leadership style that stems from their personality characteristics and
circumstances. Although there are different types and definitions of entrepreneurs; in general, an
entrepreneur is a person who founds and operates an innovative business. Not all business owners,
including franchise operators, are therefore entrepreneurial leaders. The general picture that emerges
of an entrepreneur is a task-oriented and charismatic person. Entrepreneurs drive themselves and
others relentlessly, yet their personalities also inspire others. Even if it is not a true leadership style, at
least there are some traits and behaviors characteristic of entrepreneurs:
Men

Command-and-Control

Focus more on disseminating information

Demonstrate Competence

Women

Style Transformational Style – Rely heavily on interpersonal skills Greater emphasis on forming, caring,
nurturing relationships with employees.

More likely than men, praise group members. Buffer criticism by finding something praiseworthy. More
sensitive and emotional cues

Display more transformational behavior and give rewards more based on merit.

Chapter 5. Contingency and Situational Leadership

Objectives

 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 (SLII).
  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.

Keywords

 Contingency – Means a future event or circumstance that is possible but cannot be predicted
with certainty 
 Contingency Approach To Leadership - The contention that leaders are most effective when
they make their behavior contingent upon situational forces, including group member
characteristics. 
 Fiedler’s Contingency Model - A model designed to diagnose whether a leader is task-oriented
or relationshiporiented and match leader style to the situation
  Path-Goal Theory – An explanation of leadership effectiveness that specifies what the leader
must do to achieve high productivity and morale in a given situation.
   Normative Decision Model – A view of leadership 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. 
 Leader–Member Exchange (LMX) Model – An explanation of leadership proposing that leaders
develop unique working relationships with group members. 
 Crisis Leadership – The process of leading group members through a sudden and largely
unanticipated, intensely negative, and emotionally draining circumstance.

Key Contents

1. Contingency and Contingency Approach on Effective Leadership Behavior

As we discussed in Chapter 1, there are three key variables of effective leadership: the leader and his or
her characteristics and traits, behavior and style, the followers or group member and their
characteristics, and the situation or the internal and external environment. The essence of a contingency
approach to leadership revolves around these three variables. Contingency approaches seek to define
the characteristics of situations and followers and examine the leadership styles that can be used
effectively (Daft, 2018). The importance 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 external

environment have a significant impact on leader effectiveness. A useful perspective on implementing

contingency leadership is that the manager must be flexible enough to avoid clinging to old ideas that no
longer fit the current circumstances.

(Step 1) Define Those Leadership Styles

Fiedler proposed that a key factor in leadership success was an individual’s basic leadership style, either
task oriented or relationship oriented. To measure a leader’s style, Fiedler developed the least-preferred
coworker (LPC) questionnaire. This questionnaire contained 18 pairs of contrasting adjectives—for
example, pleasant–unpleasant, cold–warm, boring–interesting, or friendly–unfriendly. Respondents
were asked to think of all the coworkers they had ever had and to describe that one person they least
enjoyed working with by rating him or her on a scale of 1 to 8 for each of the 18 sets of adjectives (the 8
always described the positive adjective out of the pair and the 1 always described the negative adjective
out of the pair).

Example:

Pleasant 8 7 6 5 4 3 2 1 Unpleasant

Tense 12345678 Relaxed

5. The Normative Decision Model

Another contingency viewpoint is that leaders must choose a style that elicits the correct degree of
group participation when making decisions. The normative decision model, formerly known as the
leader–participation model, views leadership as a decision-making process in which the leader examines
certain factors in the situation to determine which decision-making style will be the most effective. This
identifies five decision-making styles, each reflecting a different degree of participation by group
members:

o Decide – the leader makes the decision alone and either announces or sells it to the
group.
o b. Consult (Individually) – the leader presents the problem to the group members
individually, gathers suggestions, and then makes the decision.
o c. Consult (Group) – the leader presents the problem to the group members in a
meeting, gathers suggestions, and then makes the decision.
o d. Facilitate – the leader presents the problem and then acts as a facilitator, defining the
problem to be solved and the boundaries in which the decision must be made
o . e. Delegate – the leader permits the group to make the decision within prescribed
limits. Leader works behind the scenes.

The leader diagnoses the situation in terms of seven variables, or contingency factors, that contribute to
selecting the most appropriate decision-making style. The situational factors, or problem variables,
make the model a contingency approach. The decision-making style chosen depends on these factors,
which are defined as follows:

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

b. Importance of Commitment: The importance of team members’ commitment to the decision

(commitment deals with decision acceptance).

c. Leader Expertise: Your knowledge or expertise in relation to the problem

. d. 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 organization’s objectives at stake
in the problem.

f. Group Expertise: Team members’ knowledge or expertise in relation to the problem.

g. Team Competence: The ability of the team members to work together in solving problems
Chapter 6. Leadership Ethics and Social Responsibility

Objectives

 Specify key principles of ethical and moral leadership.

  Apply a guide to ethical decision making
 .  Describe what leaders can do to foster an ethical and socially responsible organization. 
 Explain the link between business ethics and organizational performance.

Study Material

Keywords

 Ethics - The study of moral obligations; The study of separating right from wrong  Morals - An
individual’s determination of what is right or wrong; Influenced by a person’s values
  Values - Connected to ethics because ethics become the vehicle for converting ethics into
action 
 Integrity - Loyalty to rational principles, thereby practicing what one preaches, regardless of
emotional or social pressure. 
 Moral Identity – It involves a self-perception organized around a set of moral traits such as
honesty, caring, and compassion. 
 Entitlement - In relation to unethical behavior by executives, the idea that some CEOs lose their
sense of reality and feel entitled to whatever they can get away with or steal. 
 Ethical Mind - A point of view that helps the individual aspire to good work that matters to their
colleagues, companies, and society in general.  Corporate Social Responsibility (CSR) -
Responsibility of the organization that is part of external engagement, or the efforts a company
makes to manage its relationship with the external world.
  Social Entrepreneurship - The use of market-based methods to solve social problems. 
 Virtuous Circle - The idea that corporate social performance and corporate financial
performance feed and reinforce each other. Key Contents

Leaders face pressures that challenge their ability to do the right thing. Leaders can experience obstacles
such as their personal weakness and self-interests. Leaders also face pressure to cut costs and increase
profits, meet the demands of vendors or business partners and look successful and to please
shareholders.

In this chapter, we examine leadership ethics and social responsibility from several major perspectives:
principles of ethical and moral leadership, an ethical decision-making guide, examples of ethical
violations, examples of how leaders develop an ethical and socially responsible culture, and the link
between business ethics and organizational performance.
1. Four Ethical Leadership Behavior

Ethics is at the center of leadership because the goal of a rational leader is to merge the interests of all
parties so that everyone benefits and the organization prospers. In this section, we present a sampling
of ethical and moral behaviors, all centering on the idea that a leader should do the right thing, as
perceived by a consensus of reasonable people.

a. Be Honest and Trustworthy and Have Integrity in Dealing with Others. Trustworthiness
contributes to leadership effectiveness. It appears, however, that trust in business
leaders is low. Integrity refers to loyalty to rational principles, thereby practicing what
one preaches regardless of emotional or social pressure.
b. b. Pay Attention to All Stakeholders. A stakeholder can either be a person, group or
organization that has interest or concern in an organization. Authentic leaders should
perceive their role to include having an ethical responsibility to all of their stakeholders.
Authentic leaders have a deep commitment to their personal growth as well as to the
growth of other stakeholders.
c. c. Build Community. The leader helps people achieve a common goal, and searches for
goals compatible to all. When many people work toward the same constructive goal,
they build community.
d. d. Respect the Individual. Respecting individuals is a principle of ethical and moral
leadership that incorporates other aspects of morality. For example, if you tell the truth,
you respect others well enough to be honest. Keeping promises also shows respec

3. The Ethical Mind for Leaders

a. Fairness - The leader who practices fairness avoids favoritism, treats others in a manner that is
right and equal, and makes principled choices.
b. b. Power Sharing - The leader who shares power allows for group member input into decisions
and listens to their suggestions, ideas, and concerns.
c. c. Role Clarification - To give group members more structure in their work, the leader clarifies
responsibilities, expectations, and performance goals.
d. d. People Orientation - The leader with people orientation cares about, respects, and supports
followers
e. . e. Integrity - A leader with integrity shows a consistency between word and deeds, and keeps
promises.
f. f. Ethical Guidance - A leader provides ethical guidance by communicating about ethics, explains
ethical rules, and encourages and rewards ethical conduct.
g. g. Concern For Sustainability - A leader with a true concern for sustainability cares about the
environment in such ways as being a champion of recycling.