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Chapter 7. Leading Effectively. Steve Jobs. The Challenge of Leadership. Steve Jobs has been called “a classic comeback kid” and “the Lazarus of the PC world.” Jobs and his friend, Steve Wozniak, founded Apple Computer in Jobs’ father’s garage in the 1970s.

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Chapter 7

Chapter 7

Leading Effectively

The challenge of leadership

Steve Jobs

The Challenge of Leadership

  • Steve Jobs has been called “a classic comeback kid” and “the Lazarus of the PC world.” Jobs and his friend, Steve Wozniak, founded Apple Computer in Jobs’ father’s garage in the 1970s.

  • Jobs had a passionate vision, but had no management training, no business skills, and his style wasn’t suited to building a stable corporation; he was ousted from Apple in 1985, his reputation apparently forever tarnished.

  • Since then, Jobs founded NeXT, bought Pixar Animation Studies and made it a powerhouse, and is again CEO of Apple. Some still wonder if Jobs is what Apple needs now.

  • The realization that some leaders -- like Steve Jobs -- have bounced back and forth between success and failure illustrates the difficulty of defining what makes a leader successful.

What is leadership
What is Leadership?

Leadership is the ability to influence others toward the achievement of goals

Leadership and management
Leadership and Management

  • Leadership may sound like another name for management, but the terms are generally viewed as distinct.

  • Management aims to give consistency and order to organizations; leadership seeks to provide constructive and adaptive change.

  • Management is directed toward coordinating activities in order to get the job done; leadership is concerned with the process of developing mutual purposes.

  • Management relies more on a one-way authority relationship, while leadership relies more on a multidirectional influence relationship.

  • “Managers are people who do things right and leaders are people who do the right things.”

The changing look of leadership figure 7 1

“Old Look”

“New Look”





One-Way Influence

Reciprocal Influence



Leading Subordinates

Leading Everyone



The Changing Look of Leadership(Figure 7-1)

Emerging perspectives on leadership
Emerging Perspectives on Leadership

  • While early leadership approaches emphasized the traits of successful leaders -- who they are -- newer approaches ask how successful leaders behave -- what they do.

  • Early approaches to leadership tended to take a universalistic perspective, asking, “What works?” Newer approaches, recognizing that characteristics of the situation, such as followers’ needs and skills and various aspects of the task must be considered, ask, “What works when?”

  • Early approaches considered primarily one-way influence, how a leader influences followers. Newer approaches recognize that the influence process is reciprocal -- just as leaders are influencing followers, followers are influencing leaders.

Emerging perspectives on leadership continued
Emerging Perspectives on Leadership (Continued)

  • While early approaches tended to assume that leaders treat their various followers in similar ways, more recent approaches recognize that leaders may -- for good or bad reasons -- treat different followers differently.

  • While leadership approaches initially focused on the relationship of leaders to their subordinates, modern views are more inclusive; the “others” whom leaders influence may sometimes be team members or even hierarchical superiors.

  • Most early approaches to leadership tended to consider how a leader might influence others through a series of transactions. Newer approaches look more broadly at how leaders take actions to transform followers and organizations.

Lighten up the link to links
Lighten Up: The Link to Links

  • A recent study of golfing and leader effectiveness conducted by the New York Times compared golf handicaps of corporate heads to their companies’ stock market performance over three years.

  • The lower (better) the leader’s golf handicap, the better his or her company’s performance.

  • Perhaps natural leaders also tend to be natural athletes.

  • Perhaps perseverance and high need for achievement pay off in both golf and business.

  • Perhaps early life experiences -- such as caddying for executives -- build business skills while providing exposure to business banter.

Web wise the 20 most influential leaders of the 20th century
Web Wise: The 20 Most InfluentialLeaders of the 20th Century

  • With the coming of the new millennium, Time magazine selected and profiled “100 remarkable people … who -- for better or worse -- most influenced the last 100 years.”

  • They were considered in their fields of endeavor. For the profiles of the 20 most influential leaders and revolutionaries, go to:


Leader traits
Leader Traits

  • The earliest approach to the study of leadership was to try to identify characteristics, or traits, of successful leaders.

  • Literally thousands of studies have now explored leadership traits.

  • Of the traits, activity, intelligence, knowledge, dominance, and self-confidence are most often found to be linked to leader success.

  • Unfortunately, most reviews of studies relating to leadership traits have concluded that the trait approach has not been fruitful.

  • Very few traits show up consistently across studies.

  • Also, since traits are relatively stable, it is unlikely that leaders can develop them through training.

  • So, attention has shifted from what successful leaders are to what they do.

Leaders aren’t born, they are made. And they are made just like anything else, through hard work.”-- Vince Lombardi

Developing and using power bases
Developing and Using Power Bases just like anything else, through hard work.”-- Vince Lombardi

  • We defined leadership as the ability to influence others toward the achievement of goals.

  • But what exactly is influence?

  • How does influence relate to things such as authority, power, and control?

  • How does a leader gain the ability to influence?

Defining terms
Defining Terms just like anything else, through hard work.”-- Vince Lombardi

  • Authority: The right to influence (that is, exert force on) others. It is conferred by the organization.

  • Power: The ability to influence others. People in organizations may have power without authority, and authority without power.

  • Influence: The exertion of force on others. Influence is power put into action; power is latent influence.

  • Control: The exertion of enough force to change others’ behaviors. We may have a lot of power and exert a lot of influence without getting people to do what we want.

The nature of power
The Nature of Power just like anything else, through hard work.”-- Vince Lombardi

  • Latent. Power is something that people have and may or may not choose to use. It is a weapon or tool; it may never be used, and just having it may makes its use unnecessary.

  • Relative. The power one person has over another depends largely on things such as the expertise of one person relative to another and the hierarchical level of one relative to the other; a manager may have considerable power relative to one person and little or none relative to another.

  • Perceived. Power is based on one person’s belief that another has certain characteristics. If I believe you have power over me, you’ve got it!

  • Dynamic. Power relationships evolve over time as individuals gain or lose certain types of power relative to others.

Uses of power
Uses of Power just like anything else, through hard work.”-- Vince Lombardi

  • Power over: This is power used to make another person act in a certain way; it may be called dominance.

  • Power to: This is power that gives others the means to act more freely themselves; it is sometimes called empowerment.

  • Power from: This is power that protects us from the power of others; it may be called resistance.

Forms of compliance to power
Forms of Compliance to Power just like anything else, through hard work.”-- Vince Lombardi

  • Coercive power involves forcing someone to comply with our wishes.

  • With utilitarian power, compliance results from desires for rewards.

  • Normative power rests on the employees’ belief that the organization has the right to govern their behavior.

Bases of power
Bases of Power just like anything else, through hard work.”-- Vince Lombardi

  • If we’re going to use power, we first have to get it.

  • Traditionally, a distinction has been made between how people get power (termed interpersonal power bases) and how organizational subunits get power (termed subunit power bases).

  • We’ll retain this distinction for now. However, the distinction is murky: people may use the so-called subunit power bases, and groups or subunits may use the so-called interpersonal power bases.

Interpersonal power bases
Interpersonal Power Bases just like anything else, through hard work.”-- Vince Lombardi

  • Legitimate: Based on one person’s belief that it is legitimate, or right, for another to give orders or otherwise exert force.

  • Reward: Based on one person’s perception that another can influence the rewards s/he receives.

  • Coercive: Based on one person’s perception that another can influence the punishments s/he receives.

  • Referent: Based on a feeling of identity, or oneness, that one person has for another, or the desire for such identity.

  • Expert: Based on one person’s perception that another has needed expertise in a given area.

Interaction of bases of power

COERCIVE just like anything else, through hard work.”-- Vince Lombardi










Interaction of Bases of Power

Resource dependence approach
Resource Dependence Approach Power (From Figure 7-2)

  • One source of subunit power is the ability to control the supply of important resources required by other subunits.

  • According to the resource dependence approach, those subunits that obtain the most critical and hard-to-get resources acquire the most power because of the dependencies that are developed.

Strategic contingencies approach
Strategic Contingencies Approach Power (From Figure 7-2)

According to the strategic contingencies approach, a unit’s power is based on three things:

  • The ability to cope with uncertainty.

  • Centrality in the flow of information and work between units. Units are more central if they have an immediate effect on the organization or an impact on most other units.

  • Nonsubstitutability. The harder it is for another unit to perform the activities of this unit, the more power this unit has.

The strategic contingencies model figure 7 3

Ability to Power (From Figure 7-2)





Degree to Which

Activities are


The Strategic Contingencies Model(Figure 7-3)



Signs of power
Signs of Power Power (From Figure 7-2)

Some signs of power include the abilities to:

  • intercede favorably on behalf of someone in trouble

  • get a good placement for a subordinate

  • get approval for expenditures beyond the budget

  • get above-average salary increases for subordinates

  • get items on the agenda at policy meetings

  • get fast access to top decision makers

  • get regular, frequent access to top decision makers

  • get early information about decisions and policy shifts

Global perspectives signs of power in japan
Global Perspectives: Power (From Figure 7-2)Signs of Power in Japan

  • Signs of power may vary from one nation to another.

  • For example, in Japanese organizations the appearance of equality is an important cultural value.

  • Because of this, salary, rank, and office space may have little to do with power.

  • Instead, power can be gauged by studying patterns of interaction.

  • Power flows from expertise, and those with power can be identified because others consult with them.

Social influence approaches
Social Influence Approaches Power (From Figure 7-2)

  • Social influence is the use of power in social relationships.

  • People use a remarkable variety of tactics when attempting to influence others.

  • Managers like to use participation, rational persuasion, and inspirational appeals to influence others.

  • Tactics such as use of pressure and formation of coalitions are less popular.

  • Promising something in return for compliance is an influence tactic of last resort; it’s costly and may create expectations that there will always be rewards for compliance.

Social influence tactics figure 7 4
Social Influence Tactics Power (From Figure 7-2)(Figure 7-4)

Rational persuasion
Rational Persuasion Power (From Figure 7-2)

  • One way to get what you want is to make a compelling, persuasive argument.

  • Persuasive communicators are well liked and eloquent and have high credibility.

  • They gain credibility by their apparent expertise and by giving the impression that their motives are honorable.

  • Persuasive messages are clear and are moderately inconsistent with the message receiver’s attitudes; a message that is entirely consistent with the receiver’s attitudes makes no difference, while a message that is totally inconsistent is likely to be rejected out of hand.

Liking and ingratiation
Liking and Ingratiation Power (From Figure 7-2)

  • We’re more willing to do something for people we like.

  • Liking may be based on such things as:

    • physical attractiveness

    • compliments and flattery

    • contact and cooperation

    • association with other positive things

    • social similarity

  • Because people like others who are similar to them, there may be resulting, unconscious bias against people who are different.

Emotional appeals
Emotional Appeals Power (From Figure 7-2)

  • Friendly emotions are a useful influence approach.

  • Negative or unpleasant emotions can also be tools of social influence, especially when the person displaying the emotions has more power than the target of the influence.

  • Emotional contrast can be helpful; the presence of a nasty person makes a warm and friendly person seem even warmer and friendlier, and makes compliance with this person’s requests more likely.

Social proof
Social Proof Power (From Figure 7-2)

  • Another way to get people to take some action is by convincing them that others are taking the same action; this is called social proof.

  • The fact that others are doing something suggests that it is appropriate and socially acceptable.

  • Bartenders who salt tip jars with a few dollar bills at the beginning of the evening and producers of charity telethons who spend much of their time listing viewers who have already contributed are exploiting social proof.

Choosing from among social influence approaches
Choosing from Among Social Influence Approaches Power (From Figure 7-2)

  • People prefer some influence approaches, such as participation, to others, such as promising something in return for compliance.

  • People also select influence approaches to fit the situation.

  • Individuals responding to authoritarian managers tend to use approaches such as blocking and ingratiation, while those responding to participative managers are more likely to rely on rational persuasion.

  • Employees also use different influence approaches with their superiors depending on the goals they are seeking. When they are trying to secure personal benefits they tend to use ingratiation, and when they are trying to secure organizational goals they use a broader array of influence tactics.

Social influence and type of involvement
Social Influence and Type of Involvement Power (From Figure 7-2)

  • Compliance occurs when people do something because they don’t want to bear the costs of not doing it.

  • Identification results when influence flows from a person’s attractiveness.

  • Internalization takes place when we do something because we believe it is “the right thing to do.”

Web wise native american leaders

Black Elk Power (From Figure 7-2)


Sitting Bull

Web Wise: Native American Leaders

  • The website of the Indigenous Peoples’ Literature includes profiles of many native American great chiefs and leaders. The profiles provide rich insights into the wide range of traits, behaviors, and motivations of those leaders.


Autocratic and democratic styles figure 7 5

Lower Power (From Figure 7-2)

Degree of Participation




Autocratic and Democratic Styles(Figure 7-5)

Autocratic and democratic styles
Autocratic and Democratic Styles Power (From Figure 7-2)

  • Autocratic leaders make decisions themselves, without inputs from subordinates. Democratic leaders let subordinates participate in decision making.

  • Democratic style is consistently linked to higher levels of subordinate satisfaction.

  • Democratic style is usually positively, but weakly, related to productivity.

  • This weak link of democratic style to performance may be because many factors determine whether a democratic style is appropriate, including the nature of the tasks and the characteristics of subordinates.

Autocratic and democratic styles continued
Autocratic and Democratic Styles Power (From Figure 7-2)(Continued)

  • When tasks are simple and repetitive, participation has little effect, because “there is little to participate about.”

  • When subordinates are intelligent and desire independence, participation is especially important.

  • Participation is empowering and satisfying, and it generates enthusiasm for the decisions that are reached.

  • Participation takes time, and people sometimes don’t like to participate, especially if they care little about the decision.

  • Since leaders may give more productive followers more responsibility, the relationship between democratic style and performance could be due to the impact of performance on style rather than vice versa.

Consideration and initiating structure
Consideration and Initiating Structure Power (From Figure 7-2)

  • Effective leaders show concern for both the task and the people they leader. Without concern for task, the job won’t get done. Without concern for people, satisfaction, motivation, and team spirit will suffer and performance will ultimately suffer.

  • Two sets of leader behaviors -- consideration and initiating structure -- address these concerns.

  • Consideration and initiating structure are not conflicting sets of behaviors. Skillful leaders should be able to exhibit both sets of behaviors, and they should use those behaviors as needed.

Consideration and initiating structure continued
Consideration and Initiating Structure Power (From Figure 7-2)(Continued)

  • Consideration is behavior that shows friendship, mutual trust, respect, and warmth. Considerate leaders are friendly and approachable, look out for the personal welfare of team members, back up the members in their actions, and find time to listen to them.

  • Initiating structure is behavior that helps clarify the task and get the job done. Initiating leaders provide definite standards of performance, set goals, organize work, emphasize meeting deadlines, and coordinate the work of team members.

Sample items to measure consideration and initiating structure

Consideration Power (From Figure 7-2)

Treats all work unit members as his or her equal

Is friendly and approachable

Does little things to make work pleasant

Puts suggestions made by the work unit into operation

Looks out for personal welfare of work unit members

Initiating Structure

Lets work unit members know what is expected of them

Schedules the work to be done

Encourages the use of uniform procedures

Assigns work unit members to particular tasks

Makes his or her attitudes clear to the group

Sample Items To Measure Considerationand Initiating Structure

Consideration and initiating structure figure 7 6

High Power (From Figure 7-2)



Initiating Structure



Consideration and Initiating Structure(Figure 7-6)

Focus on management recycling people at omni computer products
Focus on Management: Recycling People Power (From Figure 7-2)at Omni Computer Products

  • Gerald Chamales is founder, President, and CEO of Omni Computer Products.

  • Chamales provides an example of a leader who cares about his employees as well as profit.

  • A college dropout and recovering drug and alcohol abuser who spent six months in a psychiatric facility and then bottomed out as a homeless youth 25 years ago, Chamales now recycles both people and laser cartridges.

  • A full third of his 250 employees, including managers, are drawn from the welfare rolls and halfway houses of Los Angeles.

  • Chamales demands that those with drug or alcohol problems have 30 days of sobriety in a treatment program, and he then gives them training, motivational seminars, mentoring, and even loans.

Lighten up bosses from hell
Lighten Up: Bosses from Hell Power (From Figure 7-2)

  • In his Dilbert cartoons, Scott Adams lambastes “pointy-headed” bosses who are amazingly insensitive, unqualified, vindictive, fail to deliver on promises, or are simply clueless.

  • Here are some actual bad bosses from”best boss/worst boss” contests:

    • An elderly engineer passed away at his desk at approximately 3 o’clock. The boss told office workers not to call 911 until 5 o’clock because it would disrupt the routine and be unproductive.

    • A boss told a programmer, “Give me a list of the unknown bugs in this system.”

    • A supervisor for a Fortune 500 chemical manufacturer would announce at 3 p.m. that he was leaving early, say his good nights, and leave, only to sneak up the back stairway to hide in the supply closet with the lights off to spy on employees for two hours.

Path goal theory
Path-Goal Theory Power (From Figure 7-2)

  • The theory is called path-goal because its major concern is how the leader influences the followers’ perceptions of their work goals, personal goals, and paths to goal attainment.

  • The theory suggests that a leader’s behavior is motivating or satisfying to the degree that the behavior increases follower goal attainment and clarifies the paths to these goals.

Leader motivational functions in path goal theory
Leader Motivational Functions Power (From Figure 7-2)in Path-Goal Theory

  • The leader can increase valences associated with work-goal attainment.

  • The leader can increase instrumentalities of work-goal attainment for the acquisition of personal outcomes.

  • The leader can increase the expectancy that effort will result in work-goal attainment.

Some contingency factors in the path goal theory
Some Contingency Factors in the Path-Goal Theory Power (From Figure 7-2)

  • Some task contingency variables:

    • degree of structure

    • degree to which the task is intrinsically satisfying

    • degree to which the task provides feedback concerning accomplishment

  • Some follower contingency variables:

    • need for independence

    • ability, experience, training

    • “professional” orientation

Elements of path goal theory figure 7 7

Subordinate Power (From Figure 7-2)


  • Clarification of

  • Paths to Goals

  • Increased Goal

  • Attainment

  • Subordinate

  • Responses:

  • Motivation

  • Performance

  • Satisfaction



Elements of Path-Goal Theory(Figure 7-7)

  • Leader Behaviors:

  • Directive

  • Supportive

  • Participative

  • Achievement-

  • Oriented

The bottom line applying path goal theory

Identify Task Power (From Figure 7-2)

and Employee





Behavior to the


If This Does Not

Work, Replace

the Leader

If This Does Not

Work, Train the

Leader to Change





Behavior If It

Does Not Match

the Situation

The Bottom Line:Applying Path-Goal Theory

Assess the


Some leadership substitutes and neutralizers from figure 7 8
Some Leadership Substitutes and Neutralizers Power (From Figure 7-2)(From Figure 7-8)

Web wise big dog s leadership page Power (From Figure 7-2)

Web Wise: Big Dog’s Leadership Page

  • Big Dog’s Leadership Page is part of the website called Big Dog’s Bowl of Biscuits.

  • The Bowl of Biscuits site contains information on training, leadership, and performance, as well as Big Dog’s Library and other information.

  • The Leadership Page provides information “for new supervisors, managers, leads, and anyone wishing to move up through the ranks as a leader.”

The bottom line managing substitutes and neutralizers of leadership

Recognize That Power (From Figure 7-2)

Leader Behaviors

for Which

Substitutes Exist

May Not Be Needed


Neutralizers of






Strategies to


Neutralizers of


The Bottom Line: Managing Substitutesand Neutralizers of Leadership


Substitutes for


Leader member exchange theory
Leader-Member Exchange Theory Power (From Figure 7-2)

  • According to leader-member exchange theory, leaders establish a one-on-one relationship with each follower. These relationships vary in terms of the quality of the exchange.

  • Some followers -- members of the in-group -- have a high-quality relationship with the leader, characterized by mutual trust, liking, and respect. They enjoy the confidence of the leader, are given interesting and challenging assignments, and in turn they work hard, are loyal, and support the leader.

  • Other followers -- the out-group -- have a lower quality relationship with the leader. The leader tends to see them as lacking motivation or competence or loyalty, interacts with them less, and offers them fewer chances to demonstrate their capabilities.

  • Out-group members may “live down” to the leader’s expectations, carrying out the tasks defined in their formal job descriptions and facing no real expectations of loyalty, creativity, or high performance.

Leader member exchange theory continued
Leader-Member Exchange Theory Power (From Figure 7-2)(Continued)

  • Followers may sometimes find themselves as members of out-groups due less to their abilities and potential than to favoritism, stereotypes, and personal conflicts.

  • In an ideal world their would be no in-groups and out-groups. In the real world, in-groups and out-groups are common and perhaps cannot be avoided.

  • Leaders must do all they can to ensure that in-group membership is based on ability and motivation rather than favoritism and prejudice.

  • They must also ensure that followers can move between the groups, having access to in-group membership when it is earned and falling from such status when it is no longer justified.

  • The most recent focus of leader-member exchange theory is on the process of leadership making, which develops over time in three phases.

Leader member exchange model figure 7 9

S Power (From Figure 7-2)



















Leader-Member Exchange Model(Figure 7-9)

The bottom line applying the leader member exchange model

Identify Employees Power (From Figure 7-2)

Who You Feel

Are Part of

the “In-Group”

Identify Leaders

Who You Feel

Are Part of

the “Out-Group”




Develop Leadership

Strategies for Moving

Employees from

the “Out-Group”

to the “In-Group”

The Bottom Line: Applying theLeader-Member Exchange Model

List the

Employees in

Your Work


Phases in leadership making figure 7 10

Stranger Power (From Figure 7-2)




Phases in Leadership Making(Figure 7-10)

ROLE Scripted Tested Negotiated

INFLUENCES One-Way Mixed Reciprocal

EXCHANGES Low Quality Medium Quality High Quality

INTERESTS Self Self/Other Group

Types of leadership
Types of Leadership Power (From Figure 7-2)

  • Transactional Leadership: Leadership based on transactions or exchanges -- the promise, and provision, of rewards for good performance and threats or discipline for poor performance.

  • Transformational Leadership: Leadership which transforms followers and organizations by:

    • broadening and elevating the interests of employees

    • generating awareness and acceptance of the purposes and missions of the group

    • stirring employees to look beyond their own self interest for the good of the group

“It is time for a new generation of leadership, to cope with new problems and new opportunities. For there is a new world to be won.” -- John F. Kennedy

Elements of transformational leadership

ATTRIBUTED with new problems and new opportunities. For there is a new world to be won.” -- John F. Kennedy










Elements of Transformational Leadership



Transformational leader behaviors
Transformational Leader Behaviors with new problems and new opportunities. For there is a new world to be won.” -- John F. Kennedy

  • Attributed charisma. Charisma is a Greek word meaning “Divinely inspired gift.” Leaders are seen as charismatic when they display a sense of power and confidence, remain calm during crisis situations, and provide reassurance that obstacles can be overcome.

  • Idealized influence. Leaders display idealized influence when they talk about their important values and beliefs; consider the moral and ethical consequences of their decisions; display conviction in their ideals, beliefs, and values; and model values in their actions.

  • Intellectual stimulation. Intellectually stimulating leaders help followers recognize problems and find ways to solve them. They encourage followers to challenge the status quo. They champion change and foster creative deviance.

Transformational leader behaviors continued
Transformational Leader Behaviors with new problems and new opportunities. For there is a new world to be won.” -- John F. Kennedy(Continued)

  • Inspirational leadership. Inspirational leaders give followers hope, energizing them to pursue a vision. They envision exciting new possibilities, talk optimistically about the future, express confidence that goals can be met, and articulate a compelling vision of the future.

  • Individualized consideration. Transformational leaders show personal interest and concern in their individual followers, and they promote their followers’ self-development. They coach their followers, serve as their mentors, and focus them on developing their strengths.

“A leader is a dealer in hope.” -- Napoleon Bonaparte with new problems and new opportunities. For there is a new world to be won.” -- John F. Kennedy

“Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.” -- Mark Twain

“The great law of culture is: Let each become all that he was capable of being.” -- Thomas Carlyle

Skills associated with transformational leadership

ANTICIPATORY was capable of being.” -- Thomas Carlyle












Skills Associated with Transformational Leadership



Skills associated with transformational leadership1
Skills Associated with Transformational Leadership was capable of being.” -- Thomas Carlyle

  • Anticipatory Skills -- The ability to intuitively and systematically scan the changing environment.

  • Visioning Skills -- The process of persuasion and example by which an individual or leadership team induces a group to take action that is in accord with shared purposes.

  • Value-Congruence Skills -- The ability to be in touch with followers’ needs in order to engage followers on the basis of shared motives, values, and goals.

  • Empowerment Skills -- The ability to effectively share power with followers.

  • Self-Understanding Skills -- Frameworks with which leaders understand both themselves and their followers.

Focus on management transformational leadership at general electric
Focus on Management: Transformational Leadership at General Electric

  • Jack Welch, CEO of General Electric, is a notable transformational leader.

  • “We have found what we believe to be the distilled essence of competitiveness. It is the reservoir of talent and creativity and energy that can be found in each of our people. That essence is liberated when we make people believe that what they think and do is important -- and then get out of their way while they do it.”

  • Welch describes his successor: “I want somebody with incredible energy who can excite others, who can define their visions, who finds change fun and doesn’t get paralyzed by it. I want somebody who feels comfortable in Delhi or Denver.”

The bottom line applying transformational leadership theory

Articulate This Electric

Mission with

Great Conviction

to Employees


Leadership That

Inspires Employees

to Embrace

the Mission

Provide Strong Support

for Employees by

Showing Concern for

Their Needs, Goals,

and General Welfare


Employees to Do

What Is Needed to

Achieve the


The Bottom Line: ApplyingTransformational Leadership Theory

Develop a Mission

That Responds to


Challenges or


Focus on management rebuilding the garage at hewlett packard

Carly Fiorina Electric

Focus on Management: Rebuilding theGarage at Hewlett-Packard

  • When, in 1999, Carly Fiorina was named the CEO of Hewlett-Packard, she became the first female CEO of one of America’s 20 largest corporations and was ranked by Fortune magazine as the most powerful woman in American business.

  • When Fiorina took over the reins, HP was awash in question marks, with lackluster performance and a dearth of innovative offerings.

  • Fiorina saw the company as sick and endangered -- slow, complacent, and risk averse.

Focus on management rebuilding the garage at hewlett packard continued
Focus on Management: Rebuilding the ElectricGarage at Hewlett-Packard (Continued)

  • Seeking to reinvent HP, Fiorina evoked the original spirit of the company -- it was started in a garage and rode a history of innovation -- and launched a $200 million brand and advertising campaign that included a logo with the word “invent.”

  • Saying, “Preserve the best, reinvent the rest,” Fiorina has pushed through more drastic changes in a short period of time than HP has ever seen before.

  • She drew up a “rules of the garage” based on how the original HP operated. Among its mantras are “No politics, no bureaucracy” and “Radical ideas are not bad ideas.”

  • Fiorina has revamped salary structures to tie pay more closely to performance, reinforced key values, and restructured the company. She is seeking to move the company to “Internet time.”

The language of leadership
The Language of Leadership Electric

  • Transformational leaders must be able to inspire; communicate their vision, ideals and beliefs; provide compelling reassurance; and challenge followers to think in new ways.

  • To do all this, transformational leaders must be masters of communication; they must “speak the language of leadership.”

  • Two aspects of the language of leadership -- framing and rhetorical crafting -- are crucial.

Framing and rhetorical crafting
Framing and Rhetorical Crafting Electric

  • Framing is presenting the message -- defining the purpose in a meaningful way.

  • Rhetorical crafting is using symbolic language to give emotional power to the message.

  • Two elements of framing are amplifying values -- the process of identifying and elevating certain values as basic to the overall mission -- and belief amplification -- the process of emphasizing factors that support or impede actions taken to achieve desired values.

  • Rhetorical techniques of inspirational leaders include using metaphors, analogies, and stories, gearing language to the particular audience, and using speech techniques such as alliteration, repetition, and rhythm.

I have a dream
I Have a Dream Electric

  • In his famous “I Have a Dream” speech, Martin Luther King sculpted a masterpiece of language in the service of transformational leadership.

  • King spoke of values he held dear, envisioned exciting new possibilities, assured his followers that they could overcome obstacles, and recognized followers’ individual needs and perspectives.

  • He used words of inclusion, employed many metaphors, repeated key phrases again and again, and his voice rose in volume and emotion as the speech progressed.

Global perspectives women world leaders
Global Perspectives: Women World Leaders Electric

  • While there are relatively few female leaders at top levels in the U.S., Russia, China, and other large countries, many small developed, developing, and Third World countries have been pioneers.

  • For example, women are serving, or have served in the recent past, as presidents (or equivalent) in Iceland, Malta, the Philippines, Haiti, Nicaragua, Ireland, Sri Lanka, Liberia, Switzerland, Latvia, Panama, Finland, and elsewhere.


Reflections on leadership
Reflections on Leadership Electric

  • Pay careful attention to your formal or informal leadership roles.

  • Successful leaders draw on a variety of power bases. Referent power has the broadest range, and heavy reliance on coercive power can be dangerous. Control over resources, information, and the problem-solving process all serve to increase power.

  • A a leader must show concern for both task accomplishment and fulfillment of subordinate needs.

  • The same style or behavior may not work in every situation. In deciding how to behave, consider the maturity and needs of your subordinates, the structure and other characteristics of the task, and the nature of the organization.

Reflections on leadership continued
Reflections on Leadership Electric(Continued)

  • Leadership can be frustrating. Structured tasks, separation of superiors and subordinates, bureaucratic constraints, and other factors can sometimes handcuff the leader. Try to be aware of, and deal with, leadership substitutes and neutralizers.

  • As a leader you should not accept situations as fixed. You may be able to change task structure, your power, relations with subordinates, and other dimensions.

  • The models reviewed in this chapter show that leader sensitivity, critical thinking, and flexibility are crucial.

  • Remember that vision and inspiration are important. Don’t ignore transformational aspects of the leadership role.