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Chapter 9

Textbook Notes - Chapter 9

Management (MGH)
Course Code
Joanna Heathcote

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MGTB27 / 01 Week 5
- Michael McCain, CEO of McCain and Maple Leaf Foods is an example of a leader who
takes responsibility and tries to make it right to victims at the time of the listeriosis outbreak
(did not listen to accountants and lawyers; not about money or legal liability)
What is Leadership?
- Reports in magazines suggest that effective powerful leaders have a rare combination of
vision, skills, expertise, and toughness as well as having the ability to influence
governments, public partners, and peers
- Leadership is the influence that particular individuals exert on the goal achievement of
others in an organizational context (e.g. enhancing productivity, innovation, satisfaction, and
commitment from the workforce)
- Strategic leadership LVWKHOHDGHV³DELOLW\WRDQWLFLSDWe, envision, maintain flexibility,
think strategically, and work with others to initiate changes that will create a viable future
- Strategic leaders can provide an organization with a competitive advantage by helping their
organizations compete during turbulent and unpredictable environments
- Any organizational member can influence others but individuals with authority or position
(e.g. formal leaders: manager, supervisor) may be expected to influence others. At times,
there can be ineffective formal leaders when they fail to influence others
- Informal leaders do not have formal authority so they rely on being well liked or being
perceived as highly skilled to exert influence
Are Leaders Born? The Search for Leadership Traits
- Influential leaders: Henry Ford, Martin Luther King, Jr., Jack Welch
- Are people born as leaders or are they groomed to become leaders? (experience/education)
- Implicit assumption is that those who become leaders and do a good job of it possess a
special set of traits that distinguish them from the masses of followers
Research on Leadership Traits
- The search for leadership trait began during WWI and continue through WWII when US
military recognized that it had a leadership problem where there a short supply of able
officers to lead such a massive war effort
- Traits are personal characteristics of the individual, including physical characteristics,
intellectual ability, and personality
- Research has shown that traits are not associated with whether people become effective
leaders or not (e.g. thinking someone will be a good leader because they posses certain
characteristics that we believe are associated with leadership)
- Some traits that are associated with leadership may include intelligence, energy, self-
confidence, dominance, motivation to lead, emotional stability, honesty and integrity and
need for achievement
- &HUWDLQWUDLWVVXFKDVWKUHHRIWKH³%LJ)LYGLPHnsions of personality (agreeableness,
extraversion, and openness to experience) are more closely linked to leadership emergence
and effectiveness. There is a significant relationship between intelligence and leadership
Chapter 9 ± Leadership (pg. 285 ± 314)

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MGTB27 / 02 Week 5
Limitations of the Trait Approach
- It may be difficult to determine whether the traits make the leader or whether the
opportunity for leadership produces the traits
- Traits alone are not sufficient for successful leadership
- Leadership traits make it more likely that certain actions will be taken and will be successful
- We know that dominance, intelligence, or tallness is associated with effective leadership but
we are unsure what these people do to influence others successfully. As a result, we have
little information on how to train and develop leaders or diagnose failures of leadership
The Behaviour of Leaders
- Trait approach is concerned with what leaders bring to a group setting while behaviours of
leaders was concerned with what leaders do in a group
- Are there particular leadership style that is more effective than other possible styles?
- In the 1940s, a study done at the Ohio State University researched how employees describe
their superiors along a number of behaviour dimensions and of these dimensions, two basic
kinds of behaviours were reveals: consideration and initiating structure
Consideration and Initiating Structure
- Consideration is the extent to which a leader is approachable and shows personal concern
and respect for employees
- A considerate leader is seen as friendly and democratic, expresses appreciation and support,
and is protective of group welfare (e.g. CEO of Co-operators Kathy Bardswick)
- Initiating structure is the degree to which a leader concentrates on group goal attainment
- A structuring leader clearly defines and organizes his/her role and the roles of followers,
stresses standard procedures, schedules the work to be done, and assigns employees to
particular tasks
- A leader can be high, low, or average on one or both dimensions
The Consequences of Consideration and Structure
job satisfaction, and leader effectiveness
- Consideration is more strongly related to follower satisfaction (leader and job satisfaction),
motivation, and leader effectiveness
- Initiating structure is slightly more strongly related to job performance & group performance
- Effects of consideration and initiating structure often depend on characteristics of the task,
the employee, and the setting in which work is performed (nature of the leadership situation)
Leader Reward and Punishment Behaviours
- Other things beside initiate structure or consideration can be used:
- Leader reward behaviour provides employees with compliments, tangible benefits, and
deserved special treatment (have clear picture of what is expected of them and understand
positive outcomes will occur if they achieve these expectations)
- When rewards are contingent on performance, employees should perform at a high level are
experience job satisfaction
- Leader punishment behaviour involves the use of reprimands or unfavourable task
assignments and the active withholding of rewards (e.g. raises or promotions)
behaviour, employees may react negatively with great dissatisfaction
- Leader reward and punishment behaviour is very effective

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MGTB27 / 03 Week 5
trust in supervisors), attitudes (e.g. job satisfaction), and behaviour (e.g. effort, performance)
- Contingent leader punishment was related to more favourable employee perception, attitude
and behaviour while non-contingent punishment behaviour were related to unfavourable
outcomes (stronger relationship when punishment made contingent on employee behaviour)
- Leader reward and punishment behaviour is related to employee attitudes and behaviours is
because it leads to more positive perceptions of justice and lower role ambiguity
Situational Theories of Leadership
- The basic premise of situational theories of leadership is that the effectiveness of a
leadership style is contingent on the setting/situation (e.g. nature of tasks, characteristics of
employees, and characteristics of the organization)
but his top-down leadership style and lack of openness with employees did not fit with
:HVW-HW¶VPRUHRSHQERWWRP-up, collaborative style of leadership
- Some of the best known situational leadership theories:
- Fred Fiedler of the University of Washington developed a situational theory of leadership
called Contingency Theory where the association between leadership orientation and
group effectiveness is contingent on how favourable the situation is for exerting influence
- Leadership orientation is measured by having leaders describe their Least Preferred Co-
Worker (LPC) which is a current or past co-worker with whom a leader has had a difficult
time accomplishing a task
- A leader who describes the LPC relatively favourably (a high LPC score) can be considered
relationship oriented since they can still find positive qualities when it was difficult to work
with that person [leader is motivated to maintain interpersonal relations]
- A leader who describes the LPC unfavourably (a low LPC score) can be considered task
oriented since the low-task competence of the LPC colours the leaders view of the personal
accomplish the task]
- LPC score is an attitude of the leader toward work relationships while consideration or
initiating structure are observed behaviours
- Situational Favourableness
particular LPC orientation should contribute most to group effectiveness
Leader-member relations
x When the relationship between the leader and the group member is
good. The leader is in a favourable situation to exert influence
Task structure
x When tasks are highly structured, leader should be able to exert
considerable influence on the group
Position power
x The formal authority granted to the leader by the organization to tell
others what to do. The more position power the leader holds, the more
favourable is the leadership situation
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