Final Take Exam.

Final Take Exam.

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“The true test of leadership is to keeping people moving in the right direction when things are going badly all around you.”

President Dwight Eisenhower

Session Learning Objectives


To THINK about leadership!

To identify the things great leaders do!

To discuss the role of leadership and the key leadership schools of thought and their influence on organizational success.

To understand the barriers to being an effective leader.

Set the table for a discussion and action plan around the practice of results-based leadership.

Dr. Laurence Fink


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Deeper Review of Academic Leadership Research Self-Review from Here


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The “Great Man” Theory

“Great Man” theory revolves around great men


Great leaders are great people

Great leaders are born, not made

Their personal attributes make them appealing to followers

Implies leadership is a scarce resource


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Five Approaches to Leadership


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Do Leaders Have Distinctive Personality Characteristics?

Trait approaches to leadership

attempt to identify distinctive characteristics that account for the effectiveness of leaders

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Trait Approach

Researchers have identified many individual traits that differentiate, and hopefully predict, leaders from non-leaders. For example, the following have been reviewed qualitatively and quantitatively:


Achievement motivation/orientation




Emotional maturity

Internal locus of control

Low need for affiliation



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Judge et al., 2002

Judge et al. (2002) conducted a quantitative review of the relationship between leadership and the FFM.

Moderate uncorrected effect size magnitudes

Extraversion: r = .22 ( = .31)

Conscientiousness: r = .20 ( = .28)

Small uncorrected effect size magnitudes

Neuroticism : r = -.17 ( = -.24)

Openness : r = .16 ( = .24)


In conclusion, Judge et al. summarized decades of trait-based leadership research, and found consistent and moderate relationships between multiple personality factors and leadership.



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Key Positive Leadership Traits


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Organizations can apply trait theory in two ways:

1. They can incorporate personality and trait assessments into their selection and promotion processes.

2. They can send targeted employees to management development programs that include management classes, coaching sessions, trait assessments, and the like.

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Based on research by James Kouzes and Barry Posner, credible leaders should have four traits. The leader should be:

1. Honest

2. Forward looking

3. Inspiring

4. Competent


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Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) surveyed middle managers working for 951 organizations over 62 countries.

1. Researchers determined that certain attributes of leadership were universally liked or disliked.

2. Visionary and inspirational charismatic leaders generally do the best.

3. Self-centered leaders seen as loners or face-savers generally receive a poor reception worldwide.


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Do Women Have Traits that Make Them Better Leaders?

Studies show that women executives score higher than their male counterparts on a variety of measures – from producing high quality work to goal-setting to mentoring employees

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Multimedia Lecture Support Package to Accompany Basic Marketing

Lecture Script 6-12


Gender Studies – Do Women Have Traits That Make Them Better Leaders?

Management studies have shown that “women executives, when rated by their peers, underlings, and bosses, scored higher than their male counterparts on a wide variety of measures.”

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Comment (H)

Women were found to be better at:

a. Teamwork and partnering

b. Being more collaborative

c. Seeking less personal glory

d. Being motivated less by self-interest than in what they can do for the company

e. Being more stable

f. Being less turf conscious


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Women were also found to be better at producing quality work, recognizing trends, and generating new ideas and acting on them.

4. Women used a more democratic or participative style than men, who were apt to use a more autocratic and directive style.

5. Women have been found to display more social leadership, whereas men have been found to display more task leadership.


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6. At Fortune 500 companies in 2011, females accounted for only 16.4% of corporate-officer positions. Possible explanations for the lack of women in positions of leadership include:


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a. Unwillingness to compete as hard as men or make the required personal sacrifices.

b. Women have a tendency to be overly modest and give credit to others rather than taking it for themselves.

c. Women are less likely to have access to a supportive mentor.

d. Early career success is pivotal, and women may start out at lower levels than men in their first jobs, putting them at a disadvantage.


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7. With more than half of college students being women and women making up half the workforce, it is possible that there will be more women CEOs within the next 10 years.


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Women tend to have more leadership traits than men, but hold fewer leadership positions.

CEOs believe this may be because women lack significant general management experience, and have not been around long enough to be selected.

Women believe that male stereotyping and exclusion from important informal networks contribute to the problem.


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Leadership Lessons from the GLOBE Project

Project GLOBE

ongoing attempt to develop an empirically based theory to “describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

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Major Question

Do effective leaders behave in similar ways?

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Behavioral Approaches

Behavioral leadership

approaches attempt to determine the distinctive styles used by effective leaders


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Michigan Leadership Model

Job-centered behavior

principal concerns were with achieving production efficiency, keeping costs down, and meeting schedules

Employee-centered behavior

managers paid more attention to employee satisfaction and making work groups cohesive


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Behavioral Approaches: Do Leaders Show Distinctive Patterns of Behavior?

A. Behavioral leadership approaches attempt to determine the distinctive styles used by effective leaders.

1. Leadership styles are the combinations of traits, skills and behaviors that leaders use when interacting with others.

2. Two classic studies came out of the University of Michigan and The Ohio State University.

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The University of Michigan Leadership Model

1. A team led by Rensis Likert studied the effects of leader behavior on job performance.

2. They identified two forms of leadership styles: job-centered and employee-centered.

a. In job-centered behavior, managers paid more attention to the job and work procedures.

b. In employee-centered behavior, managers paid more attention to employee satisfaction and making work groups cohesive.

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Ohio State Leadership Model

Initiating structure

behavior that organizes and defines what group members should be doing


expresses concern for employees by establishing a warm, friendly, supportive climate


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The Ohio State Leadership Model

1. A second approach was conducted at Ohio State under Ralph Stogdill.

2. From surveys of leadership behavior, two major dimensions of leader behavior were identified, as follows:

a. Initiating structure is leadership behavior that organizes and defines what group members should be doing.

b. Consideration is leadership behavior that expresses concern for employees by establishing a warm, friendly, supportive climate.


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Research demonstrates that both leadership traits and behaviors predicted leadership effectiveness criteria, but leader behaviors were more important.

1. These results suggest that it is important for organizations to train managers in how to effectively exhibit key leadership behaviors.

2. Peter Drucker recommended a set of 9 behaviors that managers can focus on to improve their leadership behaviors.

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Drucker’s Tips for Improving Leadership Effectiveness


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Major Question

How might effective leadership vary according to the situation at hand?

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Contingency Approaches

Contingency leadership model

determines if a leader’s style is task oriented or relationship-oriented and if that style is effective for the situation at hand

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Contingency Approaches: Does Leadership Vary with the Situation?

A. According to the contingency approach to leadership, effective leadership behavior depends on the situation at hand.

1. As situations change, different leadership styles become appropriate.

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B. The contingency leadership model developed by Fred Fiedler determines if a leader’s style is task-oriented or relationship-oriented and if that style is effective for the situation at hand.

1. The tool used to determine one’s leadership orientation is a questionnaire known as the least preferred coworker or LPC scale.

a. The higher the score, the more the relationship-oriented the respondent; the lower the score, the more task-oriented.


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Dimensions of Situational Control

Leader-member relations

reflects the extent to which the leader has the support, loyalty, and trust of the work group

Task structure

extent to which tasks are routine and easily understood

Position power

refers to how much power a leader has to make work assignments and reward and punish

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Once leadership orientation is known, you must determine situational control – how much control and influence a leader has in the immediate work environment. There are three dimensions:

a. Leader-member relations – The extent to which a leader has or doesn’t have the support, loyalty and trust of the work group.

b. Task structure – The extent to which tasks are routine, unambiguous and easily understood.

c. Position power – How much power a leader has to make work assignments, and reward and punish.


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3. For each dimension, the amount of control can be low or high.

4. By combining the dimensions with different high/low ratings, there are 8 different leadership situations.


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Neither leadership style is effective all the time, although each is right in certain situations.

a. The task-oriented style works best in either high-control or low-control situations.

(1) In a high-control situation, leader decisions produce predictable results because he or she can influence work outcomes.

(2) In a low-control situation, leader decisions cannot produce predictable results because he or she cannot really influence outcomes.


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b. The relationship-oriented style works best in situations of moderate control.


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The Path-Goal Leadership Model

Path-Goal Leadership Model

holds that the effective leader makes available to followers desirable rewards in the workplace and increases their motivation by clarifying the paths, or behavior, that will help them achieve those goals and providing them with support

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The path-goal leadership model holds that the effective leader makes available to followers desirable rewards in the workplace and increases their motivation by clarifying the paths, or behavior, that will help them achieve those goals and providing them with support.

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1. Successful leaders tie meaningful rewards to goal accomplishment and reduce barriers.

2. Numerous studies testing predictions from the original theory provided mixed results.

3. As a consequence, House proposed a new model.

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House’s Revised Path-Goal Theory


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Two contingency factors (or variables) cause some leadership behaviors to be more effective than others.

a. Employee characteristics – Locus of control, task ability, need for achievement, experience, and need for path-goal clarity.

b. Environmental factors – Task structure (independent vs. interdependent tasks) and work group dynamics.


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House originally proposed that there were four leader behaviors:

a. Directive (“Here’s what’s expected of you”)

b. Supportive (“I want things to be pleasant”)

c. Participative (“I want your suggestions”)

d. Achievement-oriented (“I’m confident you can accomplish the following great things”)


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His revised theory expands the number of leader behaviors from four to eight.


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Leadership Styles of the Revised Path-Goal Theory


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House’s revision puts more emphasis on the need for leaders to foster intrinsic motivation through empowerment.

It also stresses the concept of shared leadership – that employees do not have to be supervisors or managers to engage in leader behavior but may share leadership among all employees.


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Does the Revised Path – Goal Theory Work?

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Use more than one leadership style



Help employees achieve their goals



Modify leadership style to fit employee and task characteristics




Although further research is needed on the new model, it offers three important implications for managers:

a. Effective leaders possess and use more than one style of leadership.

b. Leaders should guide and coach employees in achieving their goals.

c. Managers should modify their leadership style to fit employee and task characteristics.

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Applying Situational Theories: Five Steps

Step 1: Identify Important Outcomes: “What Goals Am I Trying to Achieve?”

Step 2: Identify Relevant Employee Leadership Behaviors: “What Management Characteristics Are Best?”

Step 3: Identify Situational Conditions: “What Particular Events Are Altering the Situation?”

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Researchers believe there is a five-step approach to apply situational theories across many situations:

1. Step 1: Identify important outcomes.

a. Managers must first determine the goals he or she is trying to achieve for a specific point in time.

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Step 2: Identify relevant employee leadership behaviors.

a. Managers next need to identify which specific behaviors may be appropriate for the situation.

3. Step 3: Identify situational conditions.

a. Fiedler and House identify potential contingency factors to be considered, but there may also be other practical considerations.


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Applying Situational Theories: Five Steps

Step 4: Match Leadership to the Conditions at Hand: “How Should I Manage When There Are Multiple Conditions?”

Step 5: Determine How to Make the Match: “Change the Manager or Change the Manager ’s Behavior?”

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Step 4: Match leadership to the conditions at hand.

a. If there are too many possible situational conditions, the research may not be able to provide conclusive recommendations.

b. Managers will need to rely on their knowledge of organizational behavior to determine which leadership behavior is best for the situation at hand.

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Step 5: Determine how to make the match.

a. A manager can take either a contingency theory approach or a path-goal theory approach; i.e., the person in the leadership role can be changed or the manager can change his/her behavior.


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Major Question

What does it take to truly inspire people to perform beyond their normal levels?

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Power and Influence

Suggests leadership is an exercise of power

French and Raven (1960)

Reward Power – power through incentives

Coercive Power – power through threat

Legitimate Power – authority

Expert Power – perceived experience, knowledge etc…

Referent Power – admiration, desire to be like the leader

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Charismatic Leadership


Leadership is essential in getting anything done

Need a charismatic leader

– Especially when going into new areas

Aspects of individual leadership style and personal characteristics inspire others to follow

Perceived as a hero who has a gift

Extraordinary effect on followers

Followers believe and are inspired

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Charismatic Leaders have…

High degree of self confidence

Strong conviction about ideas

High levels of energy and enthusiasm

Good communication skills

Active attention to image building and role modeling

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Dark Side of Charisma

Unethical charismatic leaders

focus on personal goals

censure opposing views

practice one-way communication

Ethical charismatic leaders

use their power to serve others

develop followers

achieve common vision

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Transformational Leadership

Transformational leadership receives its name from the notion that transformational leaders possess the ability to transform the goals of individual followers from self-interest to collective furtherance.

Which is merely an extension of previous charismatic leadership theory.



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Transformational Leadership

Idealized influence: reflects follower perceptions of the leader.

Leaders who engender trustworthiness, are capable of achieving a vision, and serve as charismatic role models to their followers are characterized as possessing idealized influence.


Inspirational motivation: refers to the quality of the leaders vision, as received by the followers.

That is, inspirational motivation is the extent to which the leaders vision is clear, appealing, and produces an inspiring or emotional response.



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Transformational Leadership

Intellectual stimulation: the extent to which leaders provoke independent and creative thought from their followers.


Individualized consideration: reflects the degree to which the leader attends to and supports the individual needs of the follower in an equitable and satisfactory manner.

Thus, an underlying premise to individualized consideration is that the leader’s responses or behaviors to various followers are capable of being differentiated.

Further, these behaviors are meant to develop and induce maturity in the follower, versus mere exchange.


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In order to create change, organizations need transformational leadership

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Full-Range Model

Transactional leadership

focuses on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance


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The Full-Range Model: Uses of Transactional and Transformational Leadership

A. Full-range leadership suggests that leadership behavior varies along a full range of leadership styles, from take-no-responsibility (laissez-faire) leadership at one extreme through transactional leadership to transformational leadership at the other extreme.

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Transactional leadership focuses on:

1. Clarifying employees’ roles and task requirements; and

2. Providing rewards and punishments contingent on performance.

3. It encompasses the fundamental managerial activities of setting goals and monitoring progress toward their achievement.

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Full-Range Model

Transformational leadership

transforms employees to pursue organizational goals over self-interests

influenced by individual characteristics and organizational culture

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Transformational leadership transforms employees to pursue organizational goals over self-interests.

1. Whereas transactional leaders try to get people to do ordinary things, transformational leaders encourage people to do exceptional things.

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2. Transformational leaders are influenced by two factors:

a. Individual characteristics – They tend to be extroverted, agreeable, proactive and open to change.

b. Organizational culture – Adaptable, flexible cultures are more likely than rigid bureaucratic cultures to foster transformational leadership.

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The best leaders learn to display both transactional and transformational styles of leadership to some degree.

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Key Behaviors of Transformational Leaders


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Inspirational motivation



Idealized influence



Individualized consideration



Intellectual stimulation




Transformational leaders have four key kinds of behavior that affect followers:

1. Inspirational motivation – “Let me share a vision that transcends us all”

a. Transformational leaders have charisma, a form of interpersonal attraction that inspires acceptance and support.

b. Charismatic leadership was once viewed as a category of its own, but now it is considered part of transformational leadership.

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c. A transformational leader inspires motivation by offering a vision for the organization.

d. The vision attracts commitment, energizes workers, and bridges the divide between the organization’s problems and its goals and aspirations.

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Idealized influence – “We are here to do the right thing”

a. Transformational leaders inspire trust by being consistent, single-minded and persist in the pursuit of their goal.

b. They display high ethical standards and act as models of desirable values.

c. They are also able to make sacrifices for the good of the group.

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Individualized consideration – “You have the opportunity here to grow and excel”

a. Transformational leaders actively encourage followers to grow and excel by giving them challenging work, more responsibility, empowerment and one-on-one mentoring.

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Intellectual stimulation – “Let me describe the great challenges we can conquer together”

a. These leaders are gifted at communicating the organization’s strengths, weaknesses, opportunities and threats so that subordinates develop a new sense of purpose.

b. Employees take responsibility for overcoming problems and seeking creative solutions.


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Transformational leadership is positively associated with:

1. measures of organizational effectiveness

2. measures of leadership effectiveness and employee job satisfaction

3. more employee identification with their leaders and with their immediate work groups

4. commitment to organizational change

5. higher levels of intrinsic motivation, group cohesion, work engagement, setting of goals consistent with those of the leader, and proactive behavior


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Implications of Transformational Leadership

It can improve results for both individuals and groups

It can be used to train employees at any level

It requires ethical leaders

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There are also three important implications of transformational leadership for managers:

1. It can improve results for both individuals and groups.

2. It can be used to train employees at any level.

3. It requires ethical leaders.


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Major Question

If there are many ways to be a leader, which one would describe me best?

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Three Additional Perspectives

Leader-Member Exchange (LMX)

emphasizes that leaders have different sorts of relationships with different subordinates

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A. The leader-member exchange (LMX) model of leadership emphasizes that leaders have different sorts of relationships with different subordinates.

1. It focuses on the quality of relationships between managers and subordinates and assumes that each manager/subordinate relationship is unique.

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2. This unique relationship, which results from the leader’s attempt to delegate and assign work roles, can produce two types of leader-member exchange interactions:

a. In-group exchange: trust and respect. The relationship becomes a partnership characterized by mutual trust, respect and liking, and a sense of common fates.

b. Out-group exchange: lack of trust and respect. Leaders are characterized as overseers who fail to create a sense of mutual trust, respect or common fate.

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3. A positive (in-group) leader-member exchange is associated with goal commitment, trust between managers and employees, work climate, job performance and job satisfaction.

a. There is also a moderately strong positive relationship between LMX and organizational citizenship behaviors.

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Key Practices for Getting Results: A Conceptual Exercise in Leadership

Ranking of Key Practices

Review and analyze the facts received from management concerning the current state of the project.

Establish project objectives (desired results).

Develop possible alternative courses of action for achieving objectives.

Identify the positive and negative consequences of each course of action.

Decide on the best course of action.

Develop strategies (priorities, sequence, and timing of major steps) for achieving the best course of action.

Identify and analyze the various job tasks necessary to complete the project.

Determine the allocation of resources (money, machines, materials, etc.).

Determine measurable standards and check points for the project itself.

Define the scope of relationships, responsibilities, and authority of new positions

Establish qualifications (job descriptions and specifications for the new position).

Find quality people to fill positions.

Assign responsibility/accountability/authority.

Train and develop personnel for new responsibilities/authority.

Develop individual performance objectives which are mutually agreeable to the individual and his/her manager.

Arrange appropriate positive and negative consequences for individual performance.

Coordinate the on-going activities of the project.

Measure individual performance against performance objectives and standards.

Measure progress toward and/or deviation from the project’s goals.

Take corrective action on the project.

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Supplemental to Transformational Leadership



Intellectually stimulates followers

Has charisma


Engages in developmental consideration

Have increased awareness of their tasks and performing them well

Aware of needs for personal growth, development, and accomplishment

Are motivated to work for good of the organization


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Organizational Politics

Are the activities in which managers engage to increase their power and to pursue goals that favor their individual and group interests

Managers use power to

control people and other resources to meet goals

engage in politics and influence the decision-making process


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Political Decision Making

Is characterized by active disagreements over which organizational goals to pursue and how to pursue them

This can lead to more effective use of organizational resources


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Sources of Power

1. Where do members of an organization acquire their power and…

2. How do they use it?


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Sources of Individual Power

Formal Power

Legitimate power




Informal Power





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Legitimate Power

The power to control and use organizational resources for achieving goals.

Ex.: CEO has the legitimate power to take control of organization’s resources. CEO’s power is granted by the board of directors

The greater a manager’s legitimate power and authority, the more accountable and responsible is the manager for using resources to increase performance.


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Reward Power

The power to give

extrinsic rewards like pay raises and promotion,

intrinsic rewards likes praise, interesting projects,

and other rewards to subordinates.

Manger can use reward power to influence and control behavior of the organization’s members




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Coercive Power

The power to give or withhold punishment.

Ex: Suspension, demotion, termination, unpleasant job assignments, or withholding of praise and goodwill

Most organizations have clearly defined rules concerning when and how employees are to be rewarded or punished


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Information Power

The power that stems from access to and control over information (facts, data and decisions).

The more managers are able to access and control information, the greater their information power.

Having access to more information facilitates problem solving for managers


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Expert Power

Relates to a person’s ability or expertise.

An IT individual has expert power in working with computers and solving system issues.


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Referent Power

Relates to being liked, admired and respected

Some personality traits of agreeableness, extraversion, conscientiousness and willingness to help other lead to employees being liked or admired


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Charismatic Power

Intense form of referent power that relates to an individual’s unique personality, physical, strengths, or other capabilities that brings others to believe in and follow him/her.

Followers give the leader the right reign and make decisions that define the vision and goals of the organization.

Charismatic individuals:

Bill Gates-Microsoft

Steve Jobs-Apple



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Organizational Conflict

Book definition:

The struggle that arises when goal-directed behavior of one person or group blocks the goal-directed behavior of another person or group.


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Organizational Conflict

Conflict occurs because managers have not designed a structure that allows people, functions or divisions to cooperate in achieving objectives.

Conflict can increase an organization’s performance if managed and negotiated carefully


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Sources of Conflict


Functional orientation differences

Status inconsistencies

Task Relationships

Overlapping authority

Task interdependencies

Incompatible evaluation systems

Scarcity of Resources



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Occurs when employees and tasks are split into different subunits or groups such as functions and divisions for producing goods and services more effectively.

The different subunits develop different functional orientations and status inconsistencies


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Differences in Functional Orientation

Different functions develop different orientations or beliefs about the right way an to increase organizational performance.

Because each function’s tasks, jobs, priorities and goals differ, each function has a different view on what needs to be done to increase organizational performance.

Ex: R&D: focus is on long term, innovative goals Marketing: focus is on satisfying customer needs –



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Status Inconsistencies

Functions whose activities are the most central and essential to the organization’s operations view themselves as more important than other functions. These groups believe they have a higher status and prestige in the organization.

Top managers need to work to prevent the central functional groups from achieving their goals at the expense of other functions


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Task Relationships

Task relationships can create conflict between people and groups because organizational tasks are interrelated and affect one another.

(1) Overlapping authority, (2) task interdependencies, and (3) incompatible evaluation systems stimulate conflict among functions.


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Overlapping Authority

When two functions claim authority for the same task, conflict may arise.

This often result in growing organizations when managers have not clarified the task relationships and responsibilities of groups.


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Task Independencies

Each function in a organization builds on the contributions of other functions

If one function doesn’t do its job well, the ability of the function next in line to perform at a high level is decreased.

Ex: For Manufacturing to reduce its costs on the production line, this is depended upon how well R&D designed the product.


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Incompatible Evaluation System

Conflict can be created when performance evaluation systems reward some functions but not others.

The more complex the task relationships between functions, the harder it is to evaluate each function’s individual contribution to performance and reward it appropriately. This can also increase conflict.


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Scarcity of Resources

Competition for scarce resources creates conflict.

The conflict can be over allocation of capital, budget, shareholder dividends, salaries and benefits, pay raises when resources are scarce in an organization.


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Resolving Conflict


Individual-Level Conflict Management

Group-Level Conflict Management

Promoting Compromise



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Groups with conflicting interested meet together and make offers, counteroffers, and concessions in attempt to resolve differences.

Important technique for managers to reach compromise between individuals and groups

Managers must resolve conflict that benefits all parties and leads to cooperative and performance enhancing outcomes


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Individual Conflict Management

This involves changing the attitudes or behavior of those in involved in the conflict.

Steps manages can take:

Manager meets individually with those involved in the disagreement

Manager summarizes the dispute in written form to match both sides of the case.

Manager acts as a mutual third party member and discusses report with each individual separately and works out a solution.

Manager meets with the employees to discuss the agreement and get their commitment to resolving the dispute


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Group-Level Conflict

This involves changing the attitudes and behaviors of groups and departments in conflict.

5 forms of negotiation:


Involves bargaining and negotiation to reach a solution for both sides


Satisfying goals for both sides


Allowing the other party to dictate a solution and achieve goals


Both parties refuse to acknowledge the real source of the problem


Each party is focused only on pursuing own interest and has little interest on other party



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Promoting Compromise

There are (5) tactics used for promoting compromise

Emphasize common goals

This reminds people of the big picture and they are working to help the company succeed

Focus on the problem

Want to avoid people criticizing and attacking each other

Focus on interests

Meeting interests is what bargaining and negotiation is all about

Create opportunities for gain

Come up with new alternatives

Focus on what is fair

Mutual agreements can be formed based upon fairness


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