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BUS 272 Study Guide - Final Guide: Fiedler Contingency Model, Extraversion And Introversion, Relationship Marketing

Business Administration
Course Code
BUS 272
Study Guide

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Chapter 11 Final
What is leadership?
The ability to influence a group toward the achievement of a vision or set of goals.
Non-sanctioned leadership, the ability to influence that arises outside the formal
structure of the organization, is often as important or more important than formal
Organization need strong leadership and strong management for optimal effectiveness.
Trait Theories: Are leaders different from others?
Theories that consider personal qualities and characteristics that differentiate leaders
from non-leaders.
It emerged in the hope that if it were possible to identify the traits of leaders, it would
be easier to select people to fill leadership roles.
Extraversion is the most predictive trait of effective leadership
Sociable and dominant people are more likely to assert themselves in group situations,
but leaders need to make sure they are not too assertive.
Conscientiousness and openness to experience also showed strong and consistent
relationships to leadership, although not quite as strong as extraversion.
Conscientiousness and extraversion are positively related to leaders’ self-efficacy.
Emotional intelligence important for effective leadership
Big five personality models can predict leadership
Traits do a better job at predicting the emergence of leaders
Behavioural Theories: Do leaders behave in particular ways?
Theories that propose that specific behaviours differentiate leaders from non-leader.
We can train people to become leaders.
The Ohio state study:
- Two dimensions that accounted for most of the leadership behaviour described by
employees: initiating structure and consideration
- Initiating structure is the extent to which a leader is likely to define and structure his or
her role and those of employees in order to attain goals. It includes behaviour that
attempts to organize work, work relationships, and goals.
- Consideration is the extent to which a leader’s job relationships are characterized by
mutual trust, respect for employees’ ideas, and regard for their feelings.
The Michigan studies:
- Identified two behavioural types: employee-oriented leaders and production-oriented
- Employee-oriented leaders, who emphasized interpersonal relations by taking a
personal interest in the needs of employees and accepting individual differences among
- Production-oriented leader, who emphasized the technical or task aspects of the job,
focusing on accomplishing the group’s task.

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- Employee-oriented leadership is similar to consideration, and production-oriented
leadership is similar to initiating structure.
- Followers of leaders high in consideration were more satisfied with their jobs, were
more motivated, and had more respect for their leaders.
- Initiating structure was more strongly related to higher levels of group and organization
productivity and more positive performance evaluations.
Contingency Theories: Does the situation matter?
Fielder contingency model:
- Developed by Fred Fielder
- Proposes that effective group performance depends on the proper match between the
leader’s style and the degree to which the situation gives the leader control
- Assumed that an individual’s leadership style was fixed
- Used LPC (least preferred co-worker) questionnaire for assessing an individual’s basic
leadership style.
- Three contingency dimensions that determine the situation: (1) leader-member
relations. The degree of confidence, trust, and respect members have for their leader.
(2) Task structure. The degree to which job assignments are either structured or
unstructured. (3) position power. The degree of influence a leader has over power-
based activities such as hiring, firing, discipline, promotions, and salary increases.
- The better the leader-member relations, the more highly structured the job, and the
stronger the position power, the more control the leader has.
- Task-oriented leaders perform best in situations of high and low control, while
relationship-oriented leaders perform best in moderate control situations.
- To improve the leader’s effectiveness, you can change the leader to fit the situation, or
to change the situation to fit the leader.
Hersey and Blanchard’s situational leadership
- It focuses on followers
- It says that successful leadership depends on selecting the right leadership style
contingent on the followers’ readiness, or the extent to which they are willing and able
to accomplish a specific task.
- If followers are unable and unwilling to do a task, the leader needs to give clear and
specific directions.
- If they are unable and willing, the leader needs to display high task orientation to
compensate for followers’ lack of ability and high relationship orientation to get them to
“buy into” the leader’s desires.
- If followers are able and unwilling, the leader needs to use a supportive and
participative style
- If they are both able and willing, the leader does not need to do much
- It acknowledges the importance of followers and builds on the logic that leaders can
compensate for their limited ability and motivation.
Path-Goal Theory
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