CHAPTERONE

TheNatureand
Importance
ofLeadership

LearningObjectives
Explainthemeaningofleadershipandhow
itdiffersfrommanagement.
Describehowleadershipinfluences
organizationalperformance.
Pinpointseveralimportantleadershiproles.

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LearningObjectives
Identifythemajorsatisfactionsand
frustrationsassociatedwiththeleadership
role.
Describeaframeworkforunderstanding
leadership.
Recognizehowleadershipskillsare
developed.

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13

Leadership
Theabilitytoinspireconfidenceand
supportamongthepeoplewhoareneeded
toachieveorganizationalgoals
Maybeconsideredalongtermrelationship,
orpartnership,betweenleadersandgroup
members

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Partnership
Thepowerbetweenleaderandgroup
membersisapproximatelybalanced
Fourthingsnecessaryinapartnership:

Exchangeofpurpose
Arighttosayno
Jointaccountability
Absolutehonesty

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LeadershipversusManagement
Leadershipdealswith:

Change
Inspiration
Motivation
Influence

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Managementdeals
with:

Planning
Organizing
Directing
Controlling

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LeadershipMatters
Theresultsofonestudyshowed
transactionalleadershipwasnotsignificantly
relatedtoperformance
charismaticleadershipwasslightly,positively
relatedtoperformance
inanuncertainenvironment,charismatic
leadershipwasmorestronglyrelatedto
performance

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AttributionTheory
Theprocessofattributingcausalityto
events
Tosimplifyandunderstandcomplexsocial
systemsofhumaninteraction,people
interpreteventsinhumanterms
Mostorganizationalsuccessesareattributed
toheroicleaders

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18

LeadershipDoesNotMatter
Threemajorargumentsagainstthe
importanceofleadershipinclude:
Substitutesforleadership
Leaderirrelevance
Complexitytheory

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SubstitutesforLeadership

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110

LeaderIrrelevance
Situationalfactors,outsidetheleaders
control,havethelargestimpacton
outcomes
Highlevelleadershaveunilateralcontrol
overonlyafewresources,andthecontrol
overtheseresourcesislimitedby
obligationstostakeholders
Firmschoosenewleaderswhosevaluesand
behaviorsaresimilartopreviousleaders
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111

ComplexityTheory
Organizationsarecomplexsystemsthat
cannotbeexplainedbytheusualrulesof
nature
Leadersandmanagerscandolittletoalter
thecourseofthecomplexorganizational
system
Acompanysfateisdeterminedbyfactors
outsidetheleader/managerscontrol
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112

LeadershipRoles

Figurehead
Spokesperson
Negotiator
Coachandmotivator
Teambuilder

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Teamplayer
Technicalproblem
solver
Entrepreneur
Strategicplanner

113

SourcesofLeaderSatisfaction

Afeelingofpowerandprestige
Achancetohelpothersgrowanddevelop
Highincome
Respectandstatus
Goodopportunitiesforadvancement
Afeelingofbeinginonthings
Anopportunitytocontrolresources

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114

LeaderFrustrations
Toomuchuncompensatedovertime
Toomanyheadaches
Notenoughauthoritytocarryout
responsibility
Loneliness
Toomanyproblemsinvolvingpeople
Toomuchorganizationalpolitics

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115

AFrameworkfor
UnderstandingLeadership

Leadercharacteristicsandtraits
Leaderbehaviorandstyle
Groupmembercharacteristics
Internalandexternalenvironment

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116

Summary
Leadingisamajorpartofamanagersjob
Althoughsomeresearchsupportstheview
thattheleaderaffectsorganizational
performance,theconceptsofsubstitutesfor
leadership,leaderirrelevance,and
complexitytheorysuggestthatleadership
matterslittle

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117

Summary
Leadershipinvolvescarryingoutatleast
ninedifferentroles
Therearemanysourcesofbothsatisfaction
andfrustrationtoleaders
Leadershipisafunctionofleader
characteristicsandtraits,leaderbehavior
andstyle,groupmembercharacteristics,
andtheinternalandexternalenvironments
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118