This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but
must be attributed to OpenStax, Rice University and any changes must be noted.
CHAPTER TWELVE
Leadership
CHAPTER SUMMARY
What is leadership? This chapter explores its many definitions as well as various
leadership theories. Leadership is defined as the social influence relationship between
two or more persons who depend on each other to attain certain mutual goals in a
group situation. Both formal and informal leadership are described. Formal leaders are
recognized by those outside the group as the official leaders, while informal leaders are
the individuals recognized by group members themselves as the leader.
Sources of power are also explored; including reward power, coercive power, referent
power, expert power, resource power, and legitimate power. Behavioral theories have
focused on what leaders do instead of what traits leaders possess. Research from The
Ohio State University and Michigan University identified two sets of leader behaviors:
initiation (task-oriented) and consideration (relationship oriented). The Managerial Grid
plots concern for production (task) along the x-axis, and concern for people
(relationship) along the y-axis. The Managerial Grid shows that any combination of
concern for production and concern for people is possible. Fred Fiedler’s contingency
model, and Robert J. House’s path-goal theory are also presented.
As leaders in many organizations struggle with the need to manage chaos, they have
come to believe that the transformational, visionary, and charismatic leader represents
the style of leadership needed to move organizations through chaos. During the past 15
years, several new theories of leadership have emerged, each of which over time will
add to our bank of knowledge about leaders and the leadership process.
LEARNING OUTCOMES
13.1 The Nature of Leadership
1. What is the nature of leadership and the leadership process?
Leadership is a primary vehicle for fulfilling the directing function of
management. Because of its importance, theorists, researchers, and
practitioners have devoted a tremendous amount of attention and energy to
unlocking the secrets of effective leadership. They have kept at this search for
, Organizational Behavior
perhaps a greater period of time than for any other single issue related to
management.
13.2 The Leadership Process
2. What are the processes associated with people coming to leadership positions?
Organizations typically have both formal and informal leaders. Their leadership
is effective for virtually identical reasons. Leadership and management are not
the same. Although effective leadership is a necessary part of effective
management, the overall management role is much larger than leadership
alone. Managers plan, organize, direct, and control. As leaders, they are
engaged primarily in the directing function.
13.3 Types of Leaders and Leader Emergence
3. How do leaders influence and move their followers to action?
There are many diverse perspectives on leadership. Some managers treat
leadership primarily as an exercise of power. Others believe that a particular
belief and attitude structure makes for effective leaders. Still others believe it is
possible to identify a collection of leader traits that produces a leader who
should be universally effective in any leadership situation. Even today, many
believe that a profile of behaviors can universally guarantee successful
leadership. Unfortunately, such simple solutions fall short of the reality.
13.4 The Trait Approach to Leadership
4. What are the trait perspectives on leadership?
The trait approach attempted to identify physiological (appearance, height, and
weight), demographic (age, education, and socioeconomic background),
personality (dominance, self-confidence, and aggressiveness), intellective
(intelligence, decisiveness, judgment, and knowledge), task-related
(achievement drive, initiative, and persistence), and social characteristics
(sociability and cooperativeness) with leader emergence and leader
effectiveness.
13.5 Behavioral Approaches to Leadership
5. What are the behavioral perspectives on leadership?
It is clear that effective leaders are endowed with the “right stuff,” yet this
“stuff” is only a precondition to effective leadership. Leaders need to connect
with their followers and bring the right configuration of knowledge, skills, ability,
vision, and strategy to the situational demands confronting the group.
May 12, 2019 2
, Organizational Behavior
13.6 Situational (Contingency) Approaches to Leadership
6. What are the situational perspectives on leadership?
We now know that there is no one best way to be an effective leader in all
circumstances. Leaders need to recognize that how they choose to lead will
affect the nature of their followers’ compliance with their influence tactics, and
ultimately impacts motivation, satisfaction, performance, and group
effectiveness. In addition, the nature of the situation—contextual demands and
characteristics of the follower—dictates the type of leadership that is likely to be
effective. Fiedler focuses on leader traits and argues that the favorableness of
the leadership situation dictates the type of leadership approach needed. He
recommends selecting leaders to match the situation or changing the situation
to match the leader. Path-goal theory focuses on leader behavior that can be
adapted to the demands of a particular work environment and organizational
members’ characteristics. Path-goal theorists believe both that leaders can be
matched with the situation and that the situation can be changed to match
leaders. Together, these theories make clear that leadership is effective when
the characteristics and behavior of the leader match the demands of the
situation.
13.7 Substitutes for and Neutralizers of Leadership
7. What does the concept of “substitute for leadership” mean?
Characteristics of followers, tasks, and organizations can substitute for or
neutralize many leader behaviors. Leaders must remain aware of these factors,
no matter which perspective on leadership they adopt. Such awareness allows
managers to use substitutes for, and neutralizers of, leadership to their benefit,
rather than be stymied by their presence.
13.8 Transformational, Visionary, and Charismatic Leadership
8. What are the characteristics of transactional, transformational, and charismatic
leadership?
In recent years, there has been a renewed interest in key leader traits and
behaviors. As organizations face increasing amounts of chaos in their external
environments, searches for “the right leader” who can bring about major
organizational transformations has intensified. This search once again focuses
our attention on a set of “key” motives, knowledge, skills, and personality
attributes. Emerging from this search has been the identification of the
charismatic and transformational leader.
May 12, 2019 3
must be attributed to OpenStax, Rice University and any changes must be noted.
CHAPTER TWELVE
Leadership
CHAPTER SUMMARY
What is leadership? This chapter explores its many definitions as well as various
leadership theories. Leadership is defined as the social influence relationship between
two or more persons who depend on each other to attain certain mutual goals in a
group situation. Both formal and informal leadership are described. Formal leaders are
recognized by those outside the group as the official leaders, while informal leaders are
the individuals recognized by group members themselves as the leader.
Sources of power are also explored; including reward power, coercive power, referent
power, expert power, resource power, and legitimate power. Behavioral theories have
focused on what leaders do instead of what traits leaders possess. Research from The
Ohio State University and Michigan University identified two sets of leader behaviors:
initiation (task-oriented) and consideration (relationship oriented). The Managerial Grid
plots concern for production (task) along the x-axis, and concern for people
(relationship) along the y-axis. The Managerial Grid shows that any combination of
concern for production and concern for people is possible. Fred Fiedler’s contingency
model, and Robert J. House’s path-goal theory are also presented.
As leaders in many organizations struggle with the need to manage chaos, they have
come to believe that the transformational, visionary, and charismatic leader represents
the style of leadership needed to move organizations through chaos. During the past 15
years, several new theories of leadership have emerged, each of which over time will
add to our bank of knowledge about leaders and the leadership process.
LEARNING OUTCOMES
13.1 The Nature of Leadership
1. What is the nature of leadership and the leadership process?
Leadership is a primary vehicle for fulfilling the directing function of
management. Because of its importance, theorists, researchers, and
practitioners have devoted a tremendous amount of attention and energy to
unlocking the secrets of effective leadership. They have kept at this search for
, Organizational Behavior
perhaps a greater period of time than for any other single issue related to
management.
13.2 The Leadership Process
2. What are the processes associated with people coming to leadership positions?
Organizations typically have both formal and informal leaders. Their leadership
is effective for virtually identical reasons. Leadership and management are not
the same. Although effective leadership is a necessary part of effective
management, the overall management role is much larger than leadership
alone. Managers plan, organize, direct, and control. As leaders, they are
engaged primarily in the directing function.
13.3 Types of Leaders and Leader Emergence
3. How do leaders influence and move their followers to action?
There are many diverse perspectives on leadership. Some managers treat
leadership primarily as an exercise of power. Others believe that a particular
belief and attitude structure makes for effective leaders. Still others believe it is
possible to identify a collection of leader traits that produces a leader who
should be universally effective in any leadership situation. Even today, many
believe that a profile of behaviors can universally guarantee successful
leadership. Unfortunately, such simple solutions fall short of the reality.
13.4 The Trait Approach to Leadership
4. What are the trait perspectives on leadership?
The trait approach attempted to identify physiological (appearance, height, and
weight), demographic (age, education, and socioeconomic background),
personality (dominance, self-confidence, and aggressiveness), intellective
(intelligence, decisiveness, judgment, and knowledge), task-related
(achievement drive, initiative, and persistence), and social characteristics
(sociability and cooperativeness) with leader emergence and leader
effectiveness.
13.5 Behavioral Approaches to Leadership
5. What are the behavioral perspectives on leadership?
It is clear that effective leaders are endowed with the “right stuff,” yet this
“stuff” is only a precondition to effective leadership. Leaders need to connect
with their followers and bring the right configuration of knowledge, skills, ability,
vision, and strategy to the situational demands confronting the group.
May 12, 2019 2
, Organizational Behavior
13.6 Situational (Contingency) Approaches to Leadership
6. What are the situational perspectives on leadership?
We now know that there is no one best way to be an effective leader in all
circumstances. Leaders need to recognize that how they choose to lead will
affect the nature of their followers’ compliance with their influence tactics, and
ultimately impacts motivation, satisfaction, performance, and group
effectiveness. In addition, the nature of the situation—contextual demands and
characteristics of the follower—dictates the type of leadership that is likely to be
effective. Fiedler focuses on leader traits and argues that the favorableness of
the leadership situation dictates the type of leadership approach needed. He
recommends selecting leaders to match the situation or changing the situation
to match the leader. Path-goal theory focuses on leader behavior that can be
adapted to the demands of a particular work environment and organizational
members’ characteristics. Path-goal theorists believe both that leaders can be
matched with the situation and that the situation can be changed to match
leaders. Together, these theories make clear that leadership is effective when
the characteristics and behavior of the leader match the demands of the
situation.
13.7 Substitutes for and Neutralizers of Leadership
7. What does the concept of “substitute for leadership” mean?
Characteristics of followers, tasks, and organizations can substitute for or
neutralize many leader behaviors. Leaders must remain aware of these factors,
no matter which perspective on leadership they adopt. Such awareness allows
managers to use substitutes for, and neutralizers of, leadership to their benefit,
rather than be stymied by their presence.
13.8 Transformational, Visionary, and Charismatic Leadership
8. What are the characteristics of transactional, transformational, and charismatic
leadership?
In recent years, there has been a renewed interest in key leader traits and
behaviors. As organizations face increasing amounts of chaos in their external
environments, searches for “the right leader” who can bring about major
organizational transformations has intensified. This search once again focuses
our attention on a set of “key” motives, knowledge, skills, and personality
attributes. Emerging from this search has been the identification of the
charismatic and transformational leader.
May 12, 2019 3
