I

FIFTH J^I|Nt)N
Afsaneh Nahavandi
Arizona State University
PEARSON
Prentice
Ha l l :
Pearson Education International
Conteiill
Preface xvii
PART I: BUILDING BLOCKS I
CHAPTER 1 Definition and Significance of Leadership 3
Effective Leadership 3
What Is Leadership ? Who Is a Leader? 3
What Is Effectiveness ? When Is a Leader Effective ? 4
Why Do We Need Leaders ? 8
Obstacles to Effective Leadership 8
Leadership and Management 10
Roles and Functions of Leaders 11
Managerial Roles 11
Functions of the Leader: Creation and Maintenance
of an Organizational Culture 12
Does Leadership Make a Difference? 15
Arguments against the Impact of Leadership 16
Arguments for the Impact of Leadership 17
Reconciling the Differences 17
Changes in Organizations and Expectations of Leaders 18
New Roles for Leaders 18
Factors Fueling Changes 20
Barriers to Change 23
Summary and Conclusions 24
Leadership Challenge: Moving to Leadership 26
Review and Discussion Questions 27
Exercise 1-1: What Is Leadership? 28
Exercise 1-2: Images of Leadership 29
Exercise 1-3: Understanding the Leadership Context 30
Leadership in Action: JetBlue's David Neeleman
Reinvents an Airline 31
CHAPTER 2 The Global and Cultural Contexts 33
Definition and Levels of Culture 33
Definition and Characteristics 34
Levels of Culture 34
Models of National Culture 36
Hall's High-Context and Low-Context Cultural Framework 36
Hofstede 's Five Cultural Dimensions 38
ix
Contents
Trompenaars 's Dimensions of Culture 40
Global Leadership and Organizational Behavior
Effectiveness Research 41
Group Culture: Gender and Diversity 43
Gender and Leadership 44
Current State 45
Causes of Gender Differences in Leadership 46
Solutions 49
Summary and Conclusion 53
Leadership Challenge: Juggling Cultures 54
Review and Discussion Questions 55
Exercise 2-1: Proverbs as a Window to Leadership 56
Exercise 2-2: Narian Bridges 57
Exercise 2-3: Leadership and Gender 59
\ Exercise 2-4: Is This Sexual Harassment? 60
Self-Assessment and Reflection 2-1: Exploring views of women 63
Leadership in Action: Indra Nooyi: The Indian-Born CEO
of Pepsi Sets New Standards 64
CHAPTER 3 Early Theories: The Foundations of Modern
Leadership 66
A History of Modern Leadership Theory: Three Eras 66
The Trait Era: Late 1800s to Mid-1940s 67
The Behavior Era: Mid-1940s to Early 1970s 68
The Contingency Era: Early 1960s to Present 69
Early Theories 70,
Fiedler's Contingency Model 70
The Normative Decision Model 76
Path-Goal Theory 80
Attributional Models 83
Substitutes for Leadership 85
Leader-Member Exchange 87
Summary and Conclusion 93
Leadership Challenge: The In-Group Applicant 95
Review and Discussion Questions 96
Exercise 3-1: The Toy Factory 97
Exercise 3-2: Using the Normative Decision Model 98
Self-Assessment 3-1: Determining Your LPC 101
Self-Assessment 3-2: Assessing a Leadership Situation 102
Self-Assessment 3-3: Identifying Your In-Group and Out-Group 106
Leadership in Action: The Caring Dictator 108
Contents XI
CHAPTER 4 Individual Differences and Traits 110
Elements of Individual Difference Characteristics 111
Multiple Perspectives and the Impact of the Situation 113
Individual Characteristics Provide a Range 113
Traits Revisited: A Fresh Look at Leaders' Individual Characteristics
and Leader Behaviors 114
The Demographic Characteristics of Leaders 116
Values 117
Value System and Culture 117
Generational Differences 118
Values and Ethics 120
Abilities and Skills 121
Intelligence 121
Practical and Emotional Intelligence 122
Creativity 125
Skills 126
Relevant Personality Traits 126
The Big Five Personality Dimensions 127
Other Individual Personality Traits 130
Characteristics of Leaders Who Fail 140
Using Individual Characteristics 140
Summary and Conclusion 141
Leadership Challenge: Using Psychological Testing 143
Review and Discussion Questions 144
Exercise 4-1: Your Ideal Organization 145
Self-Assessment 4-1: Value Systems 146
Self-Assessment 4-2: Emotional Intelligence 147
Self-Assessment 4-3: Locus of Control 149
Self-Assessment 4-4: Type A Behavior Pattern 150
Self-Assessment 4-5: Self-Monitoring 151
Self-Assessment 4-6: MBTI 152
Self-Assessment 4-7: Machiavellianism 154
Self-Assessment 4-8: Narcissism 155
Leadership in Action: Pernille Spiers-Lopez Assembles
a Winning Team at IKEA 157
CHAPTER 5 Power and Leadership 159
Power in Organizations: Definition and Consequences 160
Consequences of Using Power 160
Distribution of Power 161
Sources of Power 163
Sources of Power Related to Individuals 163
Xll Contents
Sources of Power Related to Organizational Structure 166
Special Power Sources of Top Executives 169
The Dark Side of Power: Corruption 170
Causes and Processes 171
Corruption Cycle 173
Consequences of Corruption 175
Solutions 176
Empowerment: The Changing Face of Power 177
Steps to Empowerment 178
Impact of Empowerment 181
Summary and Conclusions 182
Leadership Challenge: How Much is Enough? 183
Review and Discussion Questions 184
Exercise 5-1: Recognizing Blocks to Empowerment 185
Self-Assessment 5-1: Views of Power 186
Leadership in Action: The Power of Dick Grasso
of the New York Stock Exchange 188
PART II: CONTEMPORARY CONCEPTS 191
CHAPTER 6 New Models for Leadership: Neo-charisma, Inspiration,
and the Relationship with Followers 193
A Brief History of Neo-charismatic Leadership 194
Charismatic Leadership: A Relationship between
Leaders and Followers 195
Characteristics of Charismatic Leaders 196
Characteristics of Followers 198
The Charismatic Situation 199
The Dark Side of Charisma 202
Evaluation and Application 203
Transactional and Transformational Leadership 204
Transactional Leadership 205
Transformational Leadership 206
Evaluation and Application 208
Spiritual, Value-based, and Authentic Leadership 210
Spiritual and Value-Based Leadership 211
Authentic Leadership 211
Links to Other Concepts 214
Evaluation and Application 215
Summary and Conclusions 215
Leadership Challenge: Standing Up to a Charismatic
but Unethical Leader 217 *
Review and Discussion Questions 218
Exercise 6-1: Do You Know a Charismatic Leader? 219
Contents Xlll
Exercise 6-2: Charismatic Speech 221
Self-Assessment 6-1: Authentic leadership 222
Leadership in Action: Andrea Jung Orchestrates
Avon's Makeover 223
CHAPTER 7 Other Leadership Perspectives: Upper Echelon
-* and Leadership of Nonprofits 225
Differences between Micro and Upper-Echelon
Strategic Leadership 226
The Domain and Impact of Strategic Leadership 228
Role of Strategic Leaders 229
Executive Discretion: Factors that Moderate the Power of Leaders 229
Characteristics of Upper-Echelon Leaders 233
Demographic and Personality Traits 233
Strategic Leadership Types 235
Strategic Leadership: Culture and Gender 240
How Do Executives Affect Their Organization? 242
Direct Decisions 242
Allocation of Resources and Control over the Reward System 243
Setting the Norms and Modeling 244
Strategic Leaders' Accountability 245
Unique Challenges of Nonprofit Organizations 249
Characteristics of Nonprofit Organizations 249
Leadership Challenges 250
Summary and Conclusions 251
Leadership Challenge: The Board of Directors (BOD)
and CEOs 253
Review and Discussion Questions 254
Exercise 7-1: Understanding Strategic Forces 255
Exercise 7-2: Your Organization 257
Exercise 7-3: Influence Processes 258
Self-Assessment 7-1: What Is Your Strategic Leadership Type? 260
Leadership in Action: A.G. Lafley Reinvents Procter & Gamble 262
PART III: LEADING 265
CHAPTER 8 Participative Management and Leading Teams 267
When Should Participation and Teams Be Used? 268
Criteria for Participation 270
The Role of Culture 271
The Issue Of Delegation 272
Benefits of Delegation 273
Guidelines for Good Delegation 2 73
Why Do Leaders Fail to Delegate ? 2 75
XIV Contents
Evolution of Participative Management: Teams
and Self-Leadership 277
Characteristics of Teams 277
Self-Managed Teams 279
Helping Teams Become Effective 280
Self-Leadership 281
The Role of Leaders in a Team Environment 283
Summary and Conclusions 285
Leadership Challenge: Who Gets the Project? 287
Review and Discussion Questions 288
Exercise 8-1: To Delegate or Not to Delegate? 289
Exercise 8-1: To Delegate or Not to Delegate? 291
Exercise 8-2: Strategies for Becoming a Self-Leader 292
Self-Assessment 8-1: Delegation Scale 294
r'
Self-Assessment 8-2: Are You a Team Leader? 295
Leadership in Action: Whole Foods 296
CHAPTER 9 Leading Change 298
Forces for Change 299
Internal and External Forces 299
Culture and Change 300
Types and Process of Change 301
Types of Change 301
Model for Change 302
Process of Planned Change 304
Dealing with Unplanned Change 305
Resistance to Change and Solutions 306
Causes of Resistance 306
Solutions 307
Leading Change 308
Visionary Leadership 308
Creativity and Improvisation 313
Creativity 313
Improvisation 314
Changing How Organizations Approach Change 314
Learning Organizations 315
Role of Leader in Changing Organizational Culture 317
Summary and Conclusions 318
Leadership Challenge: Implementing Unpopular Change 320
Review and Discussion Questions - 321
Exercise 9-1: Analyzing and Planning for Change 322
Self-Assessment 9-1: Building Credibility 324
Contents XV
Self-Assessment 9-2: Creativity 325
Leadership in Action: Best Buy Takes on Its Own Culture 326
CHAPTER 10 Developing Leaders 329
Definitions and Basic Elements 330
Factors in Learning 331
What Is Developed: The Content 333
Criteria for Effective Development Programs 333
Methods of Leader Development 336
Self-Awareness 336
Experience 338
Developmental Relationships: Coaching and Mentoring 339
Feedback-Intensive Programs 341
Classroom Education 343
Outdoor Challenges 343
Development and Culture 345
Gender and Diversity 34 7
Effectiveness of Development 348
Organizational and Personal Factors in Development 348
Summary and Conclusions 350
Leadership Challenge: Finding the Right Fit 351
Review and Discussion Questions 352
Exercise 10-1: Identifying Your Mentoring Needs
and Potential Mentors 353
Self-Assessment 10-1: My Personal Mission Statement 355
Leadership in Action: Colleen BarrettThe Soul
of Southwest Airlines 356
References 359 -''
Author Index 393
Subject Index 400