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1 01. See A. G. Miller and T. Lawson, “The Effect of an Informational 3–4; V. Nayar, “The World in 2036: Vineet Nayar Envisages
Option on the Fundamental Attribution Error,” Personality and Bottom-Up Leadership,” Economist, November 27, 2010, p.
Social Psychology Bulletin, June 1989, pp. 194–204. 114; V. Nayar, “Employees First, Customers Second,” Chief
1 02. P. Harvey, “Entitled & Self-Serving Employees Are More Likely Learning Officer, October 2010, pp. 20–23; V. Nayar, “Back
to Accuse Bosses of Abuse,” Forbes online, www.forbes.com, to Front,” People Management, August 12, 2010, pp. 26–29; V.
December 9, 2015. Nayar, “A Maverick CEO Explains How He Persuaded His Team
1 03. See, for instance, G. R. Semin, “A Gloss on Attribution Theory,” to Leap into the Future,” Harvard Business Review, June 2010,
British Journal of Social and Clinical Psychology, November pp. 110–113; B. Einhorn and K. Gokhale, “Bangalore’s Paying
1980, pp. 291–330; and M. W. Morris and K. Peng, “Culture Again to Keep the Talent,” Bloomberg BusinessWeek, May 24,
and Cause: American and Chinese Attributions for Social and 2010, pp. 14–16; M. Srivastava and S. Hamm, “Using the Slump
Physical Events,” Journal of Personality and Social Psychology, to Get Bigger in Bangalore,” BusinessWeek, September 3, 2009,
December 1994, pp. 949–971. pp. 50–51; and S. Lauchlan, “HCL Embraces Slumdog Effect,”
104. S. Nam, “Cultural and Managerial Attributions for Group Computer Weekly, June 23, 2009, p. 8.
Performance,” unpublished doctoral dissertation; University of

Chapter 16 Leadership

It’s Your Career

Being a More Charismatic Leader

Source: Aleksandr Bryliaev/Shutterstock Charisma. Can you think of someone you would
describe as having charisma? How would you
A key to success in describe that person? Enthusiastic? Self-confident?
management and in your Engaging? Inspiring? Likable? Able to relate to
career is knowing how to anyone? Maybe even magical? So are you born
become more charismatic. with charisma or can you learn to be a charismatic
leader? The answer is yes and yes. Individuals
are born with traits that make them charismatic.
But that isn’t the only way to develop charisma.
The good news is that charisma is a skill you can
cultivate. Why is that good news? Because being
viewed as charismatic can be a valuable asset in
your career. So let’s look at some suggestions on
how you can develop your charisma:

1.  Focus on others, not yourself. Take a sincere
interest in whoever you’re interacting with. Look them in the eye and
emotionally connect with them. Be sensitive to others’ needs. Empathy
is a powerful tool. Charismatic individuals have the ability to read others’
emotions and make an emotional connection with them. Make others
feel as if they’re the most important person in the room. Show by word
and deed that you do indeed understand and care about them and their
concerns.

2. Be more extroverted. Yes, you have to put yourself “out
there.” Actively seek out and engage others in different situations and
environments. Although this may be harder for an individual who is more
inclined to be an introvert, it just means you may have to try a little harder
to connect with other people. Remember, you’re trying to develop your
skill set and position yourself to be successful.

3. Work on your communication skills. Charismatic individuals
are skilled at expressive verbal communication. How can you get
better at this? Use passion as a catalyst for generating enthusiasm and
communicate with your whole body, not just with words. Use an animated

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Learning Objectives

16.1 Define leader and leadership.
16.2 Compare and contrast early theories of leadership.
16.3 Describe the three major contingency theories of leadership.

●●Develop your skill at choosing an effective leadership style.
16.4 Describe contemporary views of leadership.

●●Know how to prepare for an effective transition to a leadership position.
16.5 Discuss twenty-first century issues affecting leadership.

voice and reinforce your message with eye contact her emotions. For instance, know when, where, and
and facial expressions. Use gestures for emphasis. how to use certain emotions to make a point. . . .
Work at becoming a skilled and entertaining whether that’s being outraged at some situation or
conversationalist. But you have to be sincere in by turning on the charm in another.
your communication—whether it’s one-on-one or
with a group of people. 5. Exhibit self-confidence. As you develop
your work skills, be confident in your interactions
4. Control your emotions. A charismatic with others. Become someone that others like,
leader has the ability to control and regulate his or trust, and admire.

If someone asked you to name a great leader, who would you name? Many individuals
point to the late Steve Jobs of Apple as a great leader. And he does provide a fascinat-
ing example of the “whats” and “hows” of leadership. His leadership approach and
style is not what you’d read about in most books on leadership. And how he led Apple
probably wouldn’t work in all situations, if any others. But leadership is needed in all
organizations. Why? Because it’s the leaders in organizations who make things happen.

WHO are leaders and what is leadership?

LO16.1 Let’s begin by clarifying who leaders are and what leadership is. Our leader
definition of a leader is someone who can influence others and who Someone who can influence others and
has managerial authority. Leadership is a process of leading a group and influencing who has managerial authority
that group to achieve its goals. It’s what leaders do.
Are all managers leaders? Because leading is one of the four management func- leadership
tions, yes, ideally, all managers should be leaders. Thus, we’re going to study leaders A process of influencing a group to
and leadership from a managerial perspective.1 However, even though we’re looking at achieve goals

555

556 Part 5 Leading

these from a managerial perspective, we’re aware that groups often have informal lead-
ers who emerge. Although these informal leaders may be able to influence others, they
have not been the focus of most leadership research and are not the types of leaders
we’re studying in this chapter.

Leaders and leadership, like motivation, are organizational behavior topics that
have been researched a lot. Most of that research has been aimed at answering the
question: What is an effective leader? We’ll begin our study of leadership by looking at
some early leadership theories that attempted to answer that question.

EARLY leadership theories

LO16.2 People have been interested in leadership since they started coming
together in groups to accomplish goals. However, it wasn’t until the
early part of the twentieth century that researchers actually began to study leader-
ship. These early leadership theories focused on the leader (leadership trait theories)
and how the leader interacted with his or her group members (leadership behavior
theories).

FYI Leadership Traits

• 79 percent of senior executives Researchers at the Universities of Florida and North Carolina reported that taller men,
say that showing confidence and compared to shorter men, tended to possess higher levels of social esteem, become suc-
“grace under fire” contribute to cessful leaders, earn more money, and have greater career success.2 What does a study
a woman’s executive presence. of height have to do with trait theories of leadership? Well, that’s also what leadership
trait theories have attempted to do—identify certain traits that all leaders have.
• 76 percent of senior executives
say these characteristics Leadership research in the 1920s and 1930s focused on isolating leader traits—that
contribute to a man’s executive is, characteristics—that would differentiate leaders from nonleaders. Some of the traits
presence.4 studied included physical stature, appearance, social class, emotional stability, fluency
of speech, and sociability. Despite the best efforts of researchers, it proved impossible
to identify a set of traits that would always differentiate a leader (the person) from a
nonleader. Maybe it was a bit optimistic to think that a set of consistent and unique
traits would apply universally to all effective leaders, no matter whether they were in
charge of Mary Kay Cosmetics, the Moscow Ballet, the country of France, a local col-
legiate chapter of Alpha Chi Omega, Ted’s Malibu Surf Shop, or Oxford University.
However, later attempts to identify traits consistently associated with leadership (the
process of leading, not the person) were more successful. The eight traits shown to be
associated with effective leadership are described briefly in Exhibit 16-1.3

Researchers eventually recognized that traits alone were not sufficient for iden-
tifying effective leaders since explanations based solely on traits ignored the interac-
tions of leaders and their group members as well as situational factors. Possessing the
appropriate traits only made it more likely that an individual would be an effective
leader. Therefore, leadership research from the late 1940s to the mid-1960s concen-
trated on the preferred behavioral styles that leaders demonstrated. Researchers won-
dered whether something unique in what effective leaders did—in other words, in their
behavior—was the key.

Leadership Behaviors

Carter Murray, CEO of advertising agency FCB, once told a colleague, “Look, I think
you’re amazing, incredibly talented and you can do even more than you think in your
wildest dreams. And I am not going to manage you to do that. You will determine that
yourself.”5 In contrast, Martha Stewart, founder of Martha Stewart Living Omni-
media, was known for her demanding leadership approach. It was reported that she
micromanaged employees and treated them as a commodity.6 (We say more about
dealing with micromanaging bosses in the Workplace Confidential feature on page
570.) These two leaders, as you can see, behaved in two very different ways. What do
we know about leader behavior and how can it help us in our understanding of what
an effective leader is?

Chapter 16  Leadership 557

1. Drive. Leaders exhibit a high effort level.They have a relatively high desire for Exhibit 16-1

achievement, they are ambitious, they have a lot of energy, they are tirelessly Eight Traits Associated with
persistent in their activities, and they show initiative. Leadership

2. Desire to lead. Leaders have a strong desire to in uence and lead others.They Sources: Based on S. A. Kirkpatrick and
E. A. Locke, “Leadership: DoTraits Really
demonstrate the willingness to take responsibility. Matter?” Academy of Management
Executive, May 1991, pp. 48–60;T. A.
3. Honesty and integrity. Leaders build trusting relationships with followers by being Judge, J. E. Bono, R. Ilies, and M. W.
Gerhardt, “Personality and Leadership:
truthful or nondeceitful and by showing high consistency between word and deed. A Qualitative and Quantitative Review,”
Journal of Applied Psychology, August
4. Self-con dence. Followers look to leaders for an absence of self-doubt. Leaders, 2002, pp. 765–780; and R. L. Schaumberg
and F. J. Flynn, “Uneasy Lies the HeadThat
therefore, need to show self-con dence in order to convince followers of the Wears the Crown:The Link Between Guilt
rightness of their goals and decisions. Proneness and Leadership,” Journal of
Personality and Social Psychology, August
5. Intelligence. Leaders need to be intelligent enough to gather, synthesize, and 2012, pp. 327–342.

interpret large amounts of information, and they need to be able to create
visions, solve problems, and make correct decisions.

6. Job-relevant knowledge. Effective leaders have a high degree of knowledge

about the company, industry, and technical matters. In-depth knowledge allows
leaders to make well-informed decisions and to understand the implications of
those decisions.

7. Extraversion. Leaders are energetic, lively people.They are sociable, assertive,

and rarely silent or withdrawn.

8. Proneness to guilt. Guilt proneness is positively related to leadership

effectiveness because it produces a strong sense of responsibility for others.

Researchers hoped that the behavioral theories approach would provide more behavioral theories
definitive answers about the nature of leadership than did the trait theories.7 The four Leadership theories that identify
main leader behavior studies are summarized in Exhibit 16-2. behaviors that differentiate effective
UNIVERSITY OF IOWA STUDIES  The University of Iowa studies explored three leaders from ineffective leaders
leadership styles to find which was the most effective.8 The autocratic style described
a leader who dictated work methods, made unilateral decisions, and limited employee autocratic style
participation. The democratic style described a leader who involved employees in A leader who dictates work methods,
decision making, delegated authority, and used feedback as an opportunity for coach- makes unilateral decisions, and limits
ing employees. Finally, the laissez-faire style leader let the group make decisions and employee participation
complete the work in whatever way it saw fit. The researchers’ results seemed to indicate
that the democratic style contributed to both good quantity and quality of work. Had democratic style
the answer to the question of the most effective leadership style been found? Unfor- A leader who involves employees in
tunately, it wasn’t that simple. Later studies of the autocratic and democratic styles decision making, delegates authority,
showed mixed results. For instance, the democratic style sometimes produced higher and uses feedback as an opportunity for
performance levels than the autocratic style, but at other times, it didn’t. However, more coaching employees
consistent results were found when a measure of employee satisfaction was used. Group
members were more satisfied under a democratic leader than under an autocratic one.9 laissez-faire style
A leader who lets the group make
Now leaders had a dilemma! Should they focus on achieving higher performance decisions and complete the work in
or on achieving higher member satisfaction? This recognition of the dual nature of a whatever way it sees fit
leader’s behavior—that is, focus on the task and focus on the people—was also a key
characteristic of the other behavioral studies.

THE OHIO STATE STUDIES  The Ohio State studies identified two important initiating structure
dimensions of leader behavior.10 Beginning with a list of more than 1,000 behavioral The extent to which a leader defines
dimensions, the researchers eventually narrowed it down to just two that accounted his or her role and the roles of group
for most of the leadership behavior described by group members. The first was called members in attaining goals
initiating structure, which referred to the extent to which a leader defined his or
her role and the roles of group members in attaining goals. It included behaviors that
involved attempts to organize work, work relationships, and goals. For instance, the
typical medical and health services manager job exemplifies initiating structure behav-
iors. According to the U.S. Bureau of Labor Statistics, medical and health services
managers “plan, implement and administer programs and services in a health care
or medical facility, including personnel administration, training, and coordination of

558 Part 5 Leading

Exhibit 16-2 University of Behavioral Dimension Conclusion
Iowa Democratic style of leadership
Behavioral Theories of Leadership  Democratic style: involving was most effective, although
Ohio State subordinates, delegating later studies showed mixed
authority, and encouraging results.
University of participation
Michigan Autocratic style: dictating work High–high leader (high in
methods, centralizing decision consideration and high in
Managerial making, and limiting initiating structure) achieved
Grid participation high subordinate performance
Laissez-faire style: giving and satisfaction, but not in all
group freedom to make situations.
decisions and complete work
Employee-oriented leaders were
Consideration: being associated with high group
considerate of followers’ productivity and higher job
ideas and feelings satisfaction.

Initiating structure: structuring Leaders performed best with
work and work relationships to a 9,9 style (high concern for
meet job goals production and high concern
for people).
Employee oriented:
emphasized interpersonal
relationships and taking
care of employees’ needs

Production oriented:
emphasized technical
or task aspects of job

Concern for people:
measured leader’s concern
for subordinates on a scale
of 1 to 9 (low to high)
Concern for production:
measured leader’s concern for
getting job done on a scale of
1 to 9 (low to high)

consideration medical, nursing and physical plant staff.”11 The second was called consideration,
The extent to which a leader has work which was defined as the extent to which a leader had work relationships characterized
relationships characterized by mutual by mutual trust and respect for group members’ ideas and feelings. A leader who was
trust and respect for group members’ high in consideration helped group members with personal problems, was friendly and
ideas and feelings approachable, and treated all group members as equals. He or she showed concern for
(was considerate of) his or her followers’ comfort, well-being, status, and satisfaction.
high–high leader One researcher described leader consideration this way: “The daily practice of putting
A leader high in both initiating structure the well-being of others first has a compounding and reciprocal effect in relationships,
and consideration behaviors in friendships, in the way we treat our clients and our colleagues.”12 Research found
that a leader who was high in both initiating structure and consideration (a high–high
leader) sometimes achieved high group task performance and high group member
satisfaction, but not always.
UNIVERSITY OF MICHIGAN STUDIES  Leadership studies conducted at the Uni-
versity of Michigan at about the same time as those done at Ohio State also hoped to
identify behavioral characteristics of leaders that were related to performance effec-
tiveness. The Michigan group also came up with two dimensions of leadership behav-
ior, which they labeled employee oriented and production oriented.13 Leaders who
were employee oriented were described as emphasizing interpersonal relationships. The

Chapter 16  Leadership 559

production-oriented leaders, in contrast, tended to empha-
size the task aspects of the job. Unlike the other studies,
the Michigan researchers concluded that leaders who were
employee oriented were able to get high group productivity
and high group member satisfaction.

THE MANAGERIAL GRID  The behavioral dimensions Oprah Winfrey, founder of Oprah Winfrey
from these early leadership studies provided the basis for Network, is an employee-oriented leader.
the development of a two-dimensional grid for appraising Her compassionate and nurturing behavior
leadership styles. This managerial grid used the behav- towards subordinates helps them realize their
ioral dimensions “concern for people” (the vertical part of full potential, inspires them to succeed, and
the grid) and “concern for production” (the horizontal part results in their loyalty and job satisfaction.
of the grid) and evaluated a leader’s use of these behaviors, Caring for her employees has contributed
ranking them on a scale from 1 (low) to 9 (high).14 Although to Oprah’s success as an entrepreneur and
the grid had 81 potential categories into which a leader’s business leader.
behavioral style might fall, only five styles were named: impoverished management Source: Greg Allen/AP Images
(1,1, or low concern for production, low concern for people), task management (9,1,
or high concern for production, low concern for people), middle-of-the-road manage- managerial grid
ment (5,5, or medium concern for production, medium concern for people), country A two-dimensional grid for appraising
club management (1,9, or low concern for production, high concern for people), and leadership styles
team management (9,9, or high concern for production, high concern for people). Of
these five styles, the researchers concluded that managers performed best when using
a 9,9 style. Unfortunately, the grid offered no answers to the question of what made a
manager an effective leader; it only provided a framework for conceptualizing leader-
ship style. In fact, little substantive evidence supports the conclusion that a 9,9 style is
most effective in all situations.15

Leadership researchers were discovering that predicting leadership success involved
something more complex than isolating a few leader traits or preferable behaviors.
They began looking at situational influences; specifically, which leadership styles might
be suitable in different situations and what these different situations might be.

If your professor has assigned this, go to www.mymanagementlab.com to watch a video Watch It! 1
titled: Leading and to respond to questions.

CONTINGENCY theories of leadership

LO16.3 “The corporate world is filled with stories of leaders who failed to
achieve greatness because they failed to understand the context they
were working in.”16 In this section, we examine three contingency theories—Fiedler,
Hersey-Blanchard, and path-goal. Each looks at defining leadership style and the situ-
ation and attempts to answer the if-then contingencies (that is, if this is the context or
situation, then this is the best leadership style to use).

The Fiedler Model Fiedler contingency model
A leadership theory proposing that
The first comprehensive contingency model for leadership was developed by Fred effective group performance depends
Fiedler.17 The Fiedler contingency model proposed that effective group perfor- on the proper match between a leader’s
mance depended on properly matching the leader’s style and the amount of control style and the degree to which the
and influence in the situation. The model was based on the premise that a certain situation allows the leader to control and
leadership style would be most effective in different types of situations. The keys were influence
to (1) define those leadership styles and the different types of situations and then
(2) identify the appropriate combinations of style and situation.

Fiedler proposed that a key factor in leadership success was an individual’s basic
leadership style, either task oriented or relationship oriented. To measure a leader’s

560 Part 5 Leading

least-preferred coworker (LPC) style, Fiedler developed the least-preferred coworker (LPC) questionnaire. This
questionnaire questionnaire contained 18 pairs of contrasting adjectives—for example, pleasant–
A questionnaire that measures whether a unpleasant, cold–warm, boring–interesting, or friendly–unfriendly. Respondents were
leader is task or relationship oriented asked to think of all the coworkers they had ever had and to describe that one person
they least enjoyed working with by rating him or her on a scale of 1 to 8 for each of the
leader–member relations 18 sets of adjectives (the 8 always described the positive adjective out of the pair and
One of Fiedler’s situational contingencies the 1 always described the negative adjective out of the pair).
that describes the degree of confidence,
trust, and respect employees have for If the leader described the least-preferred coworker in relatively positive terms
their leader (in other words, a “high” LPC score—a score of 64 or above), then the respondent
task structure was primarily interested in good personal relations with coworkers and the style
One of Fiedler’s situational contingencies would be described as relationship oriented. In contrast, if you saw the least-pre-
that describes the degree to which ferred coworker in relatively unfavorable terms (a low LPC score—a score of 57 or
job assignments are formalized and below), you were primarily interested in productivity and getting the job done; thus,
structured your style would be labeled as task oriented. Fiedler did acknowledge that a small
position power number of people might fall between these two extremes and not have a cut-and-
One of Fiedler’s situational contingencies dried leadership style. One other important point is that Fiedler assumed a person’s
that describes the degree of influence a leadership style was fixed regardless of the situation. In other words, if you were a
leader has over activities such as hiring, relationship-oriented leader, you’d always be one, and the same would be true for
firing, discipline, promotions, and salary being task oriented.
increases
After an individual’s leadership style had been assessed through the LPC, it was
time to evaluate the situation in order to match the leader with the situation. Fiedler’s
research uncovered three contingency dimensions that defined the key situational fac-
tors in leader effectiveness.
•  Leader–member relations: the degree of confidence, trust, and respect

employees have for their leader; rated as either good or poor.
•  Task structure: the degree to which job assignments are formalized and

structured; rated as either high or low.
•  Position power: the degree of influence a leader has over activities such as hiring,

firing, discipline, promotions, and salary increases; rated as either strong or weak.

Each leadership situation was evaluated in terms of these three contingency
variables, which, when combined, produced eight possible situations that were either
favorable or unfavorable for the leader. (See the bottom of the chart in Exhibit 16-3.)
Situations I, II, and III were classified as highly favorable for the leader. Situations IV,
V, and VI were moderately favorable for the leader. And situations VII and VIII were
described as highly unfavorable for the leader.

Once Fiedler had described the leader variables and the situational variables, he had
everything he needed to define the specific contingencies for leadership effectiveness. To
do so, he studied 1,200 groups where he compared relationship-oriented versus task-
oriented leadership styles in each of the eight situational categories. He concluded that
task-oriented leaders performed better in very favorable situations and in very unfavor-
able situations. (See the top of Exhibit 16-3, where performance is shown on the vertical
axis and situation favorableness is shown on the horizontal axis.) On the other hand,
relationship-oriented leaders performed better in moderately favorable situations.

Because Fiedler treated an individual’s leadership style as fixed, only two ways could
improve leader effectiveness. First, you could bring in a new leader whose style better
fit the situation. For instance, if the group situation was highly unfavorable but was led
by a relationship-oriented leader, the group’s performance could be improved by replac-
ing that person with a task-oriented leader. The second alternative was to change the
situation to fit the leader. This could be done by restructuring tasks; by increasing or
decreasing the power that the leader had over factors such as salary increases, promo-
tions, and disciplinary actions; or by improving the leader–member relations.

Research testing the overall validity of Fiedler’s model has shown considerable evi-
dence to support the model.18 However, his theory wasn’t without critics. The major
criticism is that it’s probably unrealistic to assume that a person can’t change his or her
leadership style to fit the situation. Effective leaders can, and do, change their styles.

Chapter 16  Leadership 561

Exhibit 16-3 Task
Oriented
The Fiedler Model

Good

Performance

Poor Moderate Relationship
Situation Favorableness: Highly Favorable Oriented
Highly Unfavorable

Category I II III IV V VI VII VIII
Leader–Member Good Good Good Good Poor Poor Poor Poor

Relations High High Low Low High High Low Low
Strong Weak Strong Weak Strong Weak Strong Weak
Task Structure
Position Power

Another is that the LPC wasn’t very practical. Finally, the situ-
ation variables were difficult to assess.19 Despite its shortcom-
ings, the Fiedler model showed that effective leadership style
needed to reflect situational factors.

Hersey and Blanchard’s Situational With a high level of follower readiness, these
Leadership Theory designers are working on new bag ideas at
Timbuk2 Design, a firm that creates and makes
Paul Hersey and Ken Blanchard developed a leadership the- bags with company logos for new employees
ory that has gained a strong following among management and salespeople at Twitter, Google, and other
development specialists.20 This model, called situational technology firms. Creative and responsible,
leadership theory (SLT), is a contingency theory that they are willing and able to complete their
focuses on followers’ readiness. Before we proceed, two points tasks under leadership that gives them
need clarification: why a leadership theory focuses on the fol- freedom to make and implement decisions,
lowers and what is meant by the term readiness. a relationship consistent with Hersey and
Blanchard’s situational theory.
The emphasis on the followers in leadership effectiveness Source: David Paul Morris/Getty Images
reflects the reality that it is the followers who accept or reject the leader. Regardless of
what the leader does, the group’s effectiveness depends on the actions of the followers. situational leadership theory (SLT)
This important dimension has been overlooked or underemphasized in most leader- A leadership contingency theory that
ship theories. And readiness, as defined by Hersey and Blanchard, refers to the extent focuses on followers’ readiness
to which people have the ability and willingness to accomplish a specific task.
readiness
SLT uses the same two leadership dimensions that Fiedler identified: task and The extent to which people have the
relationship behaviors. However, Hersey and Blanchard go a step further by consider- ability and willingness to accomplish a
ing each as either high or low and then combining them into four specific leadership specific task
styles described as follows:

•  Telling (high task–low relationship): The leader defines roles and tells people what,
how, when, and where to do various tasks.

•  Selling (high task–high relationship): The leader provides both directive and
supportive behavior.

•  Participating (low task–high relationship): The leader and followers share in
decision making; the main role of the leader is facilitating and communicating.

•  Delegating (low task–low relationship): The leader provides little direction or support.

562 Part 5 Leading The final component in the model is the four stages of follower readiness:
•  R1: People are both unable and unwilling to take responsibility for doing
FYI
something. Followers aren’t competent or confident.
The percentage of leaders who •  R2: People are unable but willing to do the necessary job tasks. Followers are
consider themselves to be highly
effective differs by skill sets: motivated but lack the appropriate skills.
• 74 percent in communicating •  R3: People are able but unwilling to do what the leader wants. Followers are

and interacting with others. competent, but don’t want to do something.
• 67 percent in building consensus • R4: People are both able and willing to do what is asked of them.

and commitment. SLT essentially views the leader–follower relationship as being like that of
• 56 percent in fostering employee a parent and a child. Just as a parent needs to relinquish control when a child
becomes more mature and responsible, so too should leaders. As followers reach
creativity and innovation. higher levels of readiness, the leader responds not only by decreasing control over
• 39 percent in intercultural their activities but also by decreasing relationship behaviors. The SLT says if fol-
lowers are at R1 (unable and unwilling to do a task), the leader needs to use the
communication. telling style and give clear and specific directions; if followers are at R2 (unable and
• 34 percent in leading across willing), the leader needs to use the selling style and display high task orientation
to compensate for the followers’ lack of ability and high relationship orientation
countries and cultures.22 to get followers to “buy into” the leader’s desires; if followers are at R3 (able and
unwilling), the leader needs to use the participating style to gain their support; and
path-goal theory if employees are at R4 (both able and willing), the leader doesn’t need to do much
A leadership theory that says the and should use the delegating style.
leader’s job is to assist followers in
attaining their goals and to provide SLT has intuitive appeal. It acknowledges the importance of followers and builds
direction or support needed to ensure on the logic that leaders can compensate for ability and motivational limitations in
that their goals are compatible with the their followers. However, research efforts to test and support the theory generally have
goals of the group or organization been disappointing.21 Possible explanations include internal inconsistencies in the

Bono (waving), U2’s leader, lead singer, and model as well as problems with research methodology. Despite its
lyricist, uses the supportive and participative appeal and wide popularity, we have to be cautious about any enthu-
approaches of the path-goal theory. He siastic endorsement of SLT.
includes band members in decision making,
believing that their input is necessary to Path-Goal Model
achieve excellence. And he supports them by
expressing his appreciation for their talents in Another approach to understanding leadership is path-goal theory,
contributing to U2’s success and in achieving which states that the leader’s job is to assist followers in attaining
the band’s goal of improving the world through their goals and to provide direction or support needed to ensure that
its music and influence. their goals are compatible with the goals of the group or organization.
Source: Gregg DeGuire/WireImage/Getty Developed by Robert House, path-goal theory takes key elements
Images from the expectancy theory of motivation.23 The term path-goal is
derived from the belief that effective leaders remove the roadblocks
and pitfalls so that followers have a clearer path to help them get from
where they are to the achievement of their work goals.

House identified four leadership behaviors:
•  D irective leader: Lets subordinates know what’s expected of them,

schedules work to be done, and gives specific guidance on how to
accomplish tasks.
•  Supportive leader: Shows concern for the needs of followers and is
friendly.
•  Participative leader: Consults with group members and uses their suggestions
before making a decision.
• Achievement-oriented leader: Sets challenging goals and expects followers to
perform at their highest level.
In contrast to Fiedler’s view that a leader couldn’t change his or her behavior,
House assumed that leaders are flexible and can display any or all of these leadership
styles depending on the situation.
As Exhibit 16-4 illustrates, path-goal theory proposes two situational or contingency
variables that moderate the leadership behavior–outcome relationship: those in the envi-

Chapter 16  Leadership 563

Environmental Exhibit 16-4
Contingency Factors
• Task Structure Path-Goal Model
• Formal Authority System
Leader Behavior • Work Group Outcomes

• Directive Subordinate • Performance
• Supportive Contingency Factors • Satisfaction
• Participative • Locus of Control
• Achievement Oriented • Experience
• Perceived Ability

ronment that are outside the control of the follower (factors including task structure, for-
mal authority system, and the work group) and those that are part of the personal char-
acteristics of the follower (including locus of control, experience, and perceived ability).
Environmental factors determine the type of leader behavior required if subordinate
outcomes are to be maximized; personal characteristics of the follower determine how
the environment and leader behavior are interpreted. The theory proposes that a leader’s
behavior won’t be effective if it’s redundant with what the environmental structure is
providing or is incongruent with follower characteristics. For example, some predictions
from path-goal theory are:
•  Directive leadership leads to greater satisfaction when tasks are ambiguous or

stressful than when they are highly structured and well laid out. The followers
aren’t sure what to do, so the leader needs to give them some direction.
•  Supportive leadership results in high employee performance and satisfaction when
subordinates are performing structured tasks. In this situation, the leader only
needs to support followers, not tell them what to do.
•  Directive leadership is likely to be perceived as redundant among subordinates
with high perceived ability or with considerable experience. These followers are
quite capable, so they don’t need a leader to tell them what to do.
•  The clearer and more bureaucratic the formal authority relationships, the more
leaders should exhibit supportive behavior and deemphasize directive behavior.
The organizational situation has provided the structure as far as what is expected
of followers, so the leader’s role is simply to support.
•  Directive leadership will lead to higher employee satisfaction when there is
substantive conflict within a work group. In this situation, the followers need a
leader who will take charge.
•  Subordinates with an internal locus of control will be more satisfied with a
participative style. Because these followers believe they control what happens to
them, they prefer to participate in decisions.
•  Subordinates with an external locus of control will be more satisfied with a
directive style. These followers believe that what happens to them is a result of the
external environment, so they would prefer a leader who tells them what to do.
• Achievement-oriented leadership will increase subordinates’ expectancies that
effort will lead to high performance when tasks are ambiguously structured. By
setting challenging goals, followers know what the expectations are.

Testing path-goal theory has not been easy. A review of the research suggests
mixed support.24 To summarize the model, however, an employee’s performance and

564 Part 5 Leading satisfaction are likely to be positively influenced when the leader chooses a leadership
style that compensates for shortcomings in either the employee or the work setting.
Try It! However, if the leader spends time explaining tasks that are already clear or when
the employee has the ability and experience to handle them without interference, the
employee is likely to see such directive behavior as redundant or even insulting.
If your professor has assigned this, go to www.mymanagementlab.com to complete the
Simulation: Leadership and get a better understanding of the challenges of leading in
organizations.

CONTEMPORARY views of leadership

leader–member exchange theory LO16.4 What are the latest views of leadership? We want to look at four of
(LMX) these views: leader–member exchange theory, transformational-trans-
The leadership theory that says leaders actional leadership, charismatic-visionary leadership, and team leadership.
create in-groups and out-groups and
those in the in-group will have higher Leader–Member Exchange (LMX) Theory
performance ratings, less turnover, and
greater job satisfaction Have you ever been in a group in which the leader had “favorites” who made up his
or her in-group? If so, that’s the premise behind leader–member exchange (LMX)
FYI theory.25 Leader–member exchange theory (LMX) says leaders create in-groups
and out-groups, and those in the in-group will have higher performance ratings, less
• 92 percent of executives see turnover, and greater job satisfaction.
favoritism in who gets job
promotions.26 LMX theory suggests that early on in the relationship between a leader and a
given follower, a leader will implicitly categorize a follower as an “in” or as an “out.”
transactional leaders That relationship tends to remain fairly stable over time. Leaders also encourage LMX
Leaders who lead primarily by using by rewarding those employees with whom they want a closer linkage and punishing
social exchanges (or transactions) those with whom they do not.27 For the LMX relationship to remain intact, however,
transformational leaders both the leader and the follower must “invest” in the relationship.
Leaders who stimulate and inspire
(transform) followers to achieve It’s not exactly clear how a leader chooses who falls into each category, but evi-
extraordinary outcomes dence shows that in-group members have demographic, attitude, personality, and even
gender similarities with the leader or they have a higher level of competence than out-
group members.28 The leader does the choosing, but the follower’s characteristics drive
the decision.

Research on LMX has been generally supportive. It appears that leaders do dif-
ferentiate among followers; that these disparities are not random; and followers with
in-group status will have higher performance ratings, engage in more helping or “citi-
zenship” behaviors at work, and report greater satisfaction with their boss.29 A recent
LMX study found that leaders who establish a supportive relationship with key sub-
ordinates by providing emotional and other kinds of support generate organizational
commitment on the part of these employees, which leads to increases in employee
performance.30 This probably shouldn’t be surprising since leaders invest their time
and other resources in those whom they expect to perform best.

Transformational-Transactional Leadership

Many early leadership theories viewed leaders as transactional leaders; that is,
leaders who lead primarily by using social exchanges (or transactions). Transactional
leaders guide or motivate followers to work toward established goals by exchanging
rewards for their productivity.31 But another type of leader—a transformational
leader—stimulates and inspires (transforms) followers to achieve extraordinary out-
comes. Examples include Jim Goodnight of SAS Institute and Denise Morrison of
Campbell Soup Company. They pay attention to the concerns and developmental
needs of individual followers; they change followers’ awareness of issues by helping
those followers look at old problems in new ways; and they are able to excite, arouse,
and inspire followers to exert extra effort to achieve group goals.

Chapter 16  Leadership 565

Transactional and transformational Source: Roadell Hickman/Zuma Press/NewscomLEADER making a
leadership shouldn’t be viewed as oppos- DIFFERENCE
ing approaches to getting things done.33
Transformational leadership develops from Over the past several years, the Cleveland Clinic
transactional leadership. Transformational has experienced tremendous growth under the
leadership produces levels of employee effort leadership of Dr. Delos “Toby” Cosgrove.32 The
and performance that go beyond what would nonprofit health care organization now has nearly
occur with a transactional approach alone. 50,000 employees and locations around the world
Moreover, transformational leadership is including Ohio, Florida, Nevada, Ontario, and Abu
more than charisma because the transforma- Dhabi. Since Cosgrove stepped up as CEO, the organization has
tional leader attempts to instill in followers almost doubled in size, experienced increased patient satisfaction,
the ability to question not only established and improved overall clinical outcomes.
views but also those views held by the leader.34 Cosgrove joined the Cleveland Clinic as a surgeon in 1975 and be-
came CEO in 2004. Earning a Bronze Star as a surgeon in the Vietnam
The evidence supporting the superi- War, Cosgrove clearly is at the top of his profession, having performed
ority of transformational leadership over 22,000 surgeries over his career and published more than 450 arti-
transactional leadership is overwhelmingly cles. He acknowledges, however, that while technical knowledge and
impressive. For instance, studies that looked expertise are important, effective leaders must possess other char-
at managers in different settings, including acteristics such as honesty, humility, listening skills, and respect for
the military and business, found that trans- others.
formational leaders were evaluated as more Cosgrove believes leaders should create workplaces that encour-
effective, higher performers, more promot- age continual learning. He sets the example for lifelong learning by
able than their transactional counterparts, continuing to grow personally as a leader. While talking to some
and more interpersonally sensitive.35 In addi- medical students shortly after taking on the CEO role, he realized he
tion, evidence indicates that transformational needed to be more empathetic toward patients and their experience.
leadership is strongly correlated with lower As a result, he initiated Patients First, a system-wide effort to view
turnover rates and higher levels of produc- care from the patient’s viewpoint, prioritizing not only taking care of
tivity, employee satisfaction, creativity, goal
attainment, follower well-being, and corpo-
rate entrepreneurship, especially in start-up
firms.36

Charismatic-Visionary a patient’s physical body, but also the patient’s mind and spirit. What
Leadership can you learn from this leader making a difference?

Jeff Bezos, founder and CEO of Amazon.com, charismatic leader
is a person who exudes energy, enthusiasm, and drive.37 He’s fun loving (his legendary An enthusiastic, self-confident leader
laugh has been described as a flock of Canada geese on nitrous oxide), but he has pur- whose personality and actions influence
sued his vision for Amazon with serious intensity and has demonstrated an ability to people to behave in certain ways
inspire his employees through the ups and downs of a rapidly growing company. Bezos is
what we call a charismatic leader—that is, an enthusiastic, self-confident leader whose
personality and actions influence people to behave in certain ways.

Several authors have attempted to identify personal characteristics of the char-
ismatic leader.38 The most comprehensive analysis identified five such characteristics:
they have a vision, the ability to articulate that vision, a willingness to take risks to
achieve that vision, a sensitivity to both environmental constraints and follower needs,
and behaviors that are out of the ordinary.39 For example, Kat Cole, group president
of FOCUS Brands, is an example of a charismatic leader. When asked about her
leadership, Cole said that “Leadership is believing in the future, yourself, others, and
in a higher purpose. It’s about building culture, courage, and confidence through your
actions and words and building teams that work to achieve common goals.”40

An increasing body of evidence shows impressive correlations between charis-
matic leadership and high performance and satisfaction among followers.41 Although
one study found that charismatic CEOs had no impact on subsequent organizational
performance, charisma is still believed to be a desirable leadership quality.42

If charisma is desirable, can people learn to be charismatic leaders? Or are char-
ismatic leaders born with their qualities? Although a small number of experts still
think that charisma can’t be learned, most believe that individuals can be trained to

566 Part 5 Leading

FYI exhibit charismatic behaviors.43 For example, researchers have succeeded in teaching
undergraduate students to “be” charismatic. How? They were taught to articulate
• A 60 percent increase in a far-reaching goal, communicate high performance expectations, exhibit confi-
leadership ratings is what dence in the ability of subordinates to meet those expectations, and empathize with
executives saw after they had the needs of their subordinates; they learned to project a powerful, confident, and
been trained in charismatic dynamic presence; and they practiced using a captivating and engaging voice tone.
tactics.44 The researchers also trained the student leaders to use charismatic nonverbal behav-
iors, including leaning toward the follower when communicating, maintaining direct
visionary leadership eye contact, and having a relaxed posture and animated facial expressions. In groups
The ability to create and articulate a with these “trained” charismatic leaders, members had higher task performance,
realistic, credible, and attractive vision higher task adjustment, and better adjustment to the leader and to the group than
of the future that improves upon the did group members who worked in groups led by noncharismatic leaders.
present situation
One last thing we should say about charismatic leadership is that it may not always
authentic leadership be necessary to achieve high levels of employee performance. It may be most appro-
Leaders who know who they are, know priate when the follower’s task has an ideological purpose or when the environment
what they believe in, and act on those involves a high degree of stress and uncertainty.45 This distinction may explain why,
values and beliefs openly and candidly when charismatic leaders surface, it’s more likely to be in politics, religion, or wartime,
or when a business firm is starting up or facing a survival crisis. For example, Martin
Luther King Jr. used his charisma to bring about social equality through nonviolent
means, and Steve Jobs achieved unwavering loyalty and commitment from Apple’s
technical staff in the early 1980s by articulating a vision of personal computers that
would dramatically change the way people lived.

Although the term vision is often linked with charismatic leadership, vision-
ary leadership is different; it’s the ability to create and articulate a realistic, cred-
ible, and attractive vision of the future that improves on the present situation.46
This vision, if properly selected and implemented, is so energizing that it “in effect
jump-starts the future by calling forth the skills, talents, and resources to make it
happen.”47

An organization’s vision should offer clear and compelling imagery that taps
into people’s emotions and inspires enthusiasm to pursue the organization’s goals.
It should be able to generate possibilities that are inspirational and unique and offer
new ways of doing things that are clearly better for the organization and its mem-
bers. Visions that are clearly articulated and have powerful imagery are easily grasped
and accepted. For instance, Jack Ma cofounded Alibaba with the vision of helping
small and large Chinese firms do business anywhere in the world. Alibaba has become
the world’s largest e-commerce company under Ma’s visionary leadership. LEGO’s
founder, Ole Kirk Kristiansen, wanted to invent innovative toys that would stimulate
children’s creativity. His leadership set the tone for LEGO to become one of today’s
most successful toy businesses.48

Authentic Leadership

Anand Mahindra, CEO of the Indian multinational Mahindra Group, cites his father
as a role model in the importance of empathy for leaders. In Mahindra’s words, “true
empathy is rooted in humility and the understanding that there are many people with
as much to contribute in life as you.” He believes that leaders must instill empathy and
act in accordance with their values to influence the behavior of others. As head of a
conglomerate operating in 100 countries, Mahindra demonstrates transparency in his
management style and champions the innovative ideas of talented young employees
who can make a difference.49

Authentic leadership focuses on the moral aspects of being a leader. Authentic
leaders know who they are, know what they believe in, and act on those values and
beliefs openly and candidly.50 For instance, Raymond Davis, CEO of Umpqua Bank,
said, “I always tell our people that they’re entitled to get answers to every question they
have. . . . That doesn’t mean they’re going to like the answers. . . .”51

Chapter 16  Leadership 567

Ethical Leadership Janay Everett (left) is a marketing field team
leader for Whole Foods Market, a company
Shortly after becoming CEO of General Motors, Mary Barra faced a character-defin- that is organized around employee teams.
ing choice: Should she take responsibility for the company’s installation of faulty igni- Her job requires the skills of building and
tion switches in millions of vehicles even though she was not CEO at the time? Barra maintaining good relationships with store
chose to take the high road: “I want to start by saying how sorry personally and how leaders, department team leaders, and team
sorry General Motors is for what has happened.”52 She then appointed Jeff Boyer as members at several different locations. She
the vice president of global safety. Barra said that “If there are any obstacles in his collaborates and communicates with store
way, Jeff has the authority to clear them. If he needs any additional resources, he will leadership in developing marketing plans that
get them.”53 Mary Barra is an example of an ethical leader because she is placing achieve store-specific sales and growth goals.
public safety ahead of profits. She is holding culpable employees accountable, and she Source: Zuma Press Inc./Alamy
stands behind her employees by creating a culture in which they feel that they could
and should do a better job.

Team Leadership

Because leadership is increasingly taking place within
a team context and more organizations are using work
teams, the role of the leader in guiding team members has
become increasingly important. The role of team leader is
different from the traditional leadership role, as J. D. Bry-
ant, a supervisor at Texas Instruments’ Forest Lane plant
in Dallas, discovered. One day he was contentedly oversee-
ing a staff of 15 circuit board assemblers. The next day,
he was told that the company was going to use employee
teams and he was to become a “facilitator.” He said, “I’m
supposed to teach the teams everything I know and then
let them make their own decisions.” Confused about his
new role, he admitted, “There was no clear plan on what
I was supposed to do.”54 What is involved in being a team
leader?

Many leaders are not equipped to handle the change to employee teams. As one
consultant noted, “Even the most capable managers have trouble making the transi-
tion because all the command-and-control type things they were encouraged to do
before are no longer appropriate. There’s no reason to have any skill or sense of this.”55
This same consultant estimated that “probably 15 percent of managers are natural
team leaders; another 15 percent could never lead a team because it runs counter to
their personality—that is, they’re unable to sublimate their dominating style for the
good of the team. Then there’s that huge group in the middle: Team leadership doesn’t
come naturally to them, but they can learn it.”56

The challenge for many managers is learning how to become an effective team
leader. They have to learn skills such as patiently sharing information, and being
able to trust others and to give up authority. For example, Raphaël Gorgé, chairman
and CEO of Groupe Gorgé, a French high-tech company, embraces these practices:
“It is important to have self-confidence as a manager. I surround myself with high-
quality people who are far better than myself in their respective roles. I believe in
putting together the best team possible and creating an ecosystem where individuals
can strive.”57 And effective team leaders have mastered the difficult balancing act of
knowing when to leave their teams alone and when to get involved. For instance, Jane
Rosenthal, founder of the Tribeca Film Festival, described her leadership style in the
following way: “I’m hands-off until there’s a big problem, and then I’m completely
hands-on. As long as I trust that everybody is doing what they’re supposed to do, it’s
great.”58 Do these leadership styles produce different results? Not always. For example,
new team leaders may try to retain too much control at a time when team members
need more autonomy, or they may abandon their teams at times when the teams need
support and help.59

One study looking at organizations that reorganized themselves around
employee teams found certain common responsibilities of all leaders. These leader

568 Part 5 Leading Coach Liaison with
External
Exhibit 16-5
Constituencies
Team Leadership Roles

Team Leader
Roles

Conflict Troubleshooter
Manager

responsibilities included coaching, facilitating, handling disciplinary problems,
reviewing team and individual performance, training, and communication.60 How-
ever, a more meaningful way to describe the team leader’s job is to focus on two
priorities: (1) managing the team’s external boundary and (2) facilitating the team
process.61 These priorities entail four specific leadership roles, which are identified
in Exhibit 16-5.

Watch It! 2 If your professor has assigned this, go to www.mymanagementlab.com to watch a
video titled: Herman Miller: Motivation, Leadership & Teamwork and to respond to
questions.

REALlegte’st
The Scenario:

Brianna Porter is struggling with her Source: Kevin Krossber
role as a team leader at a nonprofit
organization that provides support
programs for at-risk youth in her
community. She recently was promoted to
lead a team of fundraisers that reach out to
local businesses and wealthy individuals
to secure the funding that keeps the
organization running. She initially took a Kevin Krossber
“hands-off” approach and encouraged her Director of Operations

staff to make their own decisions on who to target for donations. But now
donations are declining and she knows she needs to intervene.

What advice can you give Brianna on how to be supportive of her team?

Knowing what you want accomplished may seem clear to you but it is
even more important that your team shares that same vision. You won’t
all be working toward the same goal if your team does not understand
how to accomplish the goal. Make the effort to be involved, meet with
your staff, and provide clear direction on how to be successful so your
team can be confident with their ability to do what is expected of them.
If you expect your team to work hard to produce quality results, you
must lead by example to show them it can be done.

Chapter 16  Leadership 569

LEADERSHIP issues in the twenty-first century

LO16.5 It’s not easy being a chief information officer (CIO) today. The person
responsible for managing a company’s information technology activities
will find that the task comes with a lot of external and internal pressures. Technology
continues to change rapidly—almost daily, it sometimes seems. Business costs con-
tinue to rise. Mazen Chilet, CIO of Abu Dhabi University, leads the team enhancing
the student experience through on-demand digital access to university resources and a
mobile app for downloading forms and checking grades. Chilet is an effective leader in
this fast-changing environment, working cooperatively with colleagues, listening care-
fully to students, and communicating clearly about plans for new technology.62
Leading effectively in today’s environment is likely to involve such challenging
circumstances for many leaders. In addition, twenty-first-century leaders do face some
important leadership issues. In this section, we look at these issues, which include
managing power, developing trust, empowering employees, leading across cultures,
and becoming an effective leader.

Managing Power legitimate power
The power a leader has as a result of his
Where do leaders get their power—that is, their right and capacity to influence work or her position in the organization
actions or decisions? Five sources of leader power have been identified: legitimate,
coercive, reward, expert, and referent.63 coercive power
The power a leader has to punish or
Legitimate power and authority are the same. Legitimate power represents the control
power a leader has as a result of his or her position in the organization. Although
people in positions of authority are also likely to have reward and coercive power, reward power
legitimate power is broader than the power to coerce and reward. The power a leader has to give positive
rewards
Coercive power is the power a leader has to punish or control. Followers react
to this power out of fear of the negative results that might occur if they don’t comply. expert power
Managers typically have some coercive power, such as being able to suspend or demote Power that’s based on expertise, special
employees or to assign them work they find unpleasant or undesirable. skills, or knowledge

Reward power is the power to give positive rewards. A reward can be any- referent power
thing a person values, such as money, favorable performance appraisals, promotions, Power that arises because of a person’s
interesting work assignments, friendly colleagues, and preferred work shifts or sales desirable resources or personal traits
territories.

Expert power is power based on expertise, special skills, or knowledge. If an
employee has skills, knowledge, or expertise that’s critical to a work group, that per-
son’s expert power is enhanced.

Finally, referent power is the power that arises because of a person’s desirable
resources or personal traits. If I admire you and want to be associated with you, you
can exercise power over me because I want to please you. Referent power develops out
of admiration of another and a desire to be like that person.

Most effective leaders rely on several different forms of power to affect the
behavior and performance of their followers. For example, the commanding officer
of one of Australia’s state-of-the-art submarines, the HMAS Sheean, employs dif-
ferent types of power in managing his crew and equipment. He gives orders to the
crew (legitimate), praises them (reward), and disciplines those who commit infrac-
tions (coercive). As an effective leader, he also strives to have expert power (based
on his expertise and knowledge) and referent power (based on his being admired) to
influence his crew.

570 Part 5 Leading

WORKPLACE CONFIDENTIAL A Micromanaging Boss

Micromanaging has been described as “probably the most confident of your abilities. So if either you or your boss is new,
common complaint about a boss.” What exactly is microman- you might want to give it some time.
aging, and what can you do if you find yourself working for a
micromanager? Changing conditions. A final step before you take any
action should be to assess whether conditions have changed.
A micromanaging boss is someone who wants to con- If your boss’s micromanaging behavior is a change from her
trol every particular, down to the smallest detail, of your work. past behavior, consider whether it might be justified by
For you, it can be very frustrating, stressful, and demoraliz- changing conditions. Is your organization going through lay-
ing. What are some signs that your boss may be microman- offs? Is there a major reorganization going on? Has your boss
aging you? He checks on your progress multiple times a day; been given additional projects with pressing deadlines? Has
asks for frequent updates; tells you how to complete tasks; your boss got a new boss? Any of these types of conditions
is obsessed with meaningless details; or becomes irritated can increase stress and lead your boss to micromanaging.
if you make a decision without consulting him first. But just If the conditions creating stress are temporary, her strong
because your boss monitors your work doesn’t mean he’s a oversight behavior may be just short term.
micromanager. Every manager has a responsibility for con-
trolling activities for which he or she is responsible. And good Talk to your boss. If you’ve come to the conclusion that
managers are detail oriented. The difference is that micro- your boss’s behavior isn’t temporary and it’s creating difficul-
managers obsess on details, lose sight of priorities, and be- ties for you to do your job properly, you and your boss need
have as if they don’t trust you. Good managers, on the other to talk.
hand, understand the value of delegation. Unfortunately, you
might not always have one of these. It’s very possible your boss is unaware that there’s a
problem. In a nonconfrontational voice, specifically explain
There’s a long list of reasons why your boss might be how his oversight is impacting your work, creating stress,
micromanaging you. That list would include insecurity, lack and making it harder for you to perform at your full capabili-
of trust in others, risk aversion, or lack of confidence in your ties. You want to show him that you’ve got things under con-
ability. Additionally, other reasons might be having too little to trol and that you know what his expectations are.
do, thinking he or she is being helpful, or just being a control
freak. Keep your boss updated. In addition to talking to your
boss, you want to alleviate any concerns she might have that
Self-assessment. If you feel that your boss is microman- work isn’t being done correctly or that she might be unable
aging you, the place to start is with self-assessment. Ask to answer questions about your work progress. This is best
yourself: “Is it me?” Is there any reason your boss might feel achieved by regularly updating her on your work’s status. No
the need to micromanage? For instance, have you shown up boss likes surprises, especially ones that might reflect nega-
late to work? Have you missed some deadlines? Have you tively on her management skills. This can best be achieved by
been distracted at work lately? Have you made mistakes that proactively providing your boss with updates before they’re
have reflected negatively on your boss? Start your assess- requested.
ment by making sure that your boss’s behavior isn’t rational
and reasonable. Reinforce your boss’s positive behaviors.When your boss
leaves you alone, let her know you appreciate her hands-off
New to the job. The next question to ask is are either you approach. Thank her for trusting you. By positively reinforcing
or your boss new on the job? If you’re new, your boss may her trust, you increase the probability that she’ll demonstrate
just be temporarily monitoring your work until he or she is more of that behavior. Over time, when combined with your
confident of your ability and you prove yourself. If your boss is regular updates and your solid performance, you’re very likely
new, either to her current position or in her first managerial to see a decline in the micromanaging behavior.
position, you will want to give her some slack as she adjusts.
Micromanaging is not uncommon among new managers Sources: Based on R.D. White, “The Micromanagement Disease: Symp-
who, with little experience, are fearful of delegation and be- toms, Diagnosis, and Cure,” Public Personnel Management, Spring 2010,
ing held accountable for results. And experienced manag- pp. 71-76; G. Campbell, “Confronting Micromanaging Bosses,” Nursing
ers, in a new position, may be overly controlling until they’re Management, September 2010, p. 56; Amy Gallo, “Stop Being Microman-
aged,” hbr.org, September 2011; and P. Ganeshan-Singh, “7 Ways to Survive
Working for a Micromanaging Boss,” payscale.com, October 29, 2014.

Chapter 16  Leadership 571

Developing Trust FYI

If you looked back at each chapter’s Leader Making a Difference box, you’d see an • 60 percent of people trust a
amazing group of leaders who not only excel at leading their organizations but also stranger more than their boss.64
have a strong trusting relationship with their employees. In today’s uncertain environ-
ment, an important consideration for leaders is building trust and credibility, both credibility
of which can be extremely fragile. Before we can discuss ways leaders can build trust The degree to which followers perceive
and credibility, we have to know what trust and credibility are and why they’re so someone as honest, competent, and
important. able to inspire

The main component of credibility is honesty. Surveys show that honesty is con- trust
sistently singled out as the number one characteristic of admired leaders. “Honesty The belief in the integrity, character, and
is absolutely essential to leadership. If people are going to follow someone willingly, ability of a leader
whether it be into battle or into the boardroom, they first want to assure themselves
that the person is worthy of their trust.”65 In addition to being honest, credible leaders
are competent and inspiring. They are personally able to effectively communicate their
confidence and enthusiasm. Thus, followers judge a leader’s credibility in terms of his
or her honesty, competence, and ability to inspire.

Trust is closely entwined with the concept of credibility, and, in fact, the terms
are often used interchangeably. Trust is defined as the belief in the integrity, character,
and ability of a leader. Followers who trust a leader are willing to be vulnerable to the
leader’s actions because they are confident that their rights and interests will not be
abused.66 Research has identified five dimensions that make up the concept of trust:67

•  Integrity: honesty and truthfulness
•  Competence: technical and interpersonal knowledge and skills
•  Consistency: reliability, predictability, and good judgment in handling situations
•  Loyalty: willingness to protect a person, physically and emotionally
• Openness: willingness to share ideas and information freely

Of these five dimensions, integrity seems to be the most critical when someone
assesses another’s trustworthiness.68 Both integrity and competence were seen in our
earlier discussion of leadership traits found to be consistently associated with leader-
ship. Workplace changes have reinforced why such leadership qualities are important.

REALlegte’st
The Scenario:

Adhita Chopra is stumped. Three months ago,
he was assigned to lead a team of phone app
designers, and although no one has come Source: Matt Ramos
out and said anything directly, he feels like
his team doesn’t trust him. They have been
withholding information and communicating
only selectively when asked questions. And
they have persistently questioned the team’s Matt Ramos
goals and strategies and even Adhita’s actions Director of Marketing

and decisions. How can he build trust with his team?

What advice would you give Adhita?

Trust in the workplace is always a tricky subject. I’ve seen a similar
situation unfold once before. If Adhita feels this, but hasn’t heard it
directly, he’s probably right. Earning trust at work comes down to three
things: being good at what you do, being passionate about your work
and the people around you, and having the ability to listen and follow
through. Adhita should make sure he’s producing top-notch work and
set up weekly one-on-one meetings with the team. Hard work and
careful listening will see Adhita through this.

572 Part 5 Leading Practice openness. Show consistency.
Be fair. Ful ll your promises.
Exhibit 16-6 Speak your feelings. Maintain con dences.
Tell the truth. Demonstrate competence.
Building Trust

BUILDING
TRUST

Employee empowerment is part of the people- For instance, the trends toward empowerment and self-managed work teams have
oriented culture at W. L. Gore & Associates. reduced many of the traditional control mechanisms used to monitor employees. If
The company encourages individuals and a work team is free to schedule its own work, evaluate its own performance, and even
work teams to take ownership in their jobs by make its own hiring decisions, trust becomes critical. Employees have to trust manag-
using their talents and abilities in finding the ers to treat them fairly, and managers have to trust employees to conscientiously fulfill
best ways to get things done and to achieve their responsibilities.
company goals. Empowered employees
feel they are trusted, respected, and valued Also, leaders have to increasingly lead others who may not be in their immediate
contributors to their company’s success. work group or may even be physically separated—members of cross-functional or vir-
Source: W. L. Gore/AP Images tual teams, individuals who work for suppliers or customers, and perhaps even people
who represent other organizations through strategic alliances. These situations don’t
allow leaders the luxury of falling back on their formal positions for influence. Many
of these relationships, in fact, are fluid and fleeting, so the ability to quickly develop
trust and sustain that trust is crucial to the success of the relationship.

Why is it important that followers trust their leaders? Research has shown that
trust in leadership is significantly related to positive job outcomes including job per-
formance, organizational citizenship behavior, job satisfaction, and organizational
commitment.69 Given the importance of trust to effective leadership, how can lead-
ers build trust? Exhibit 16-6 lists some suggestions. (Also, see the Building Your Skill
exercise in Chapter 5.)70

Now, more than ever, managerial and leadership effectiveness depends on the abil-
ity to gain the trust of followers.71 Downsizing, financial challenges, and the increased

use of temporary employees have undermined employees’
trust in their leaders and shaken the confidence of investors,
suppliers, and customers. Today’s leaders are faced with the
challenge of rebuilding and restoring trust with employees
and with other important organizational stakeholders.

Empowering Employees

Employees at DuPont’s facility in Uberaba, Brazil,
planted trees to commemorate the site’s 10th anniversary.
Although they had several things to celebrate, one of the
most important was the fact that since production began,
the facility has had zero environmental incidents and no
recordable safety violations. The primary reason for this
achievement was the company’s implementation of STOP
(Safety Training Observation Program)—a program in
which empowered employees were responsible for observing one another, correct-
ing improper procedures, and encouraging safe procedures.72
As we’ve described in different places throughout the text, managers are increas-
ingly leading by empowering their employees. As we’ve said before, empowerment
involves increasing the decision-making discretion of workers. Millions of individual
employees and employee teams are making the key operating decisions that directly
affect their work. They’re developing budgets, scheduling workloads, controlling
inventories, solving quality problems, and engaging in similar activities that until very

Chapter 16  Leadership 573

recently were viewed exclusively as part of the manager’s job.73 For instance, at The
Container Store, any employee who gets a customer request has permission to take
care of it. Garret Boone, chairman emeritus, says, “Everybody we hire, we hire as a
leader. Anybody in our store can take an action that you might think of typically being
a manager’s action.”74

One reason more companies are empowering employees is the need for quick deci-
sions by those people who are most knowledgeable about the issues—often those at
lower organizational levels. If organizations want to successfully compete in a dynamic
global economy, employees have to be able to make decisions and implement changes
quickly. Another reason is that organizational downsizings left many managers with
larger spans of control. In order to cope with the increased work demands, managers
had to empower their people. Although empowerment is not a universal answer, it can
be beneficial when employees have the knowledge, skills, and experience to do their
jobs competently.

Leading Across Cultures

“In the United States, leaders are expected to look great, sound great, and be inspir-
ing. In other countries—not so much.”75 In this global economy, how can managers
account for cross-cultural differences as they lead?

One general conclusion that surfaces from leadership research is that effective
leaders do not use a single style. They adjust their style to the situation. Although
not mentioned explicitly, national culture is certainly an important situational vari-
able in determining which leadership style will be most effective. What works in the
United States, for instance, isn’t likely to be effective in Denmark. Lars Sørensen,
CEO of pharmaceutical company Novo Nordisk, knows from experience that effec-
tive leadership is contextual. In Denmark, he leads by consensus on all decisions.
When he leads his U.S. team, he takes on an aggressive top-down approach.76

National culture affects leadership style because it influences how followers will
respond. Leaders can’t (and shouldn’t) just choose their styles randomly. They’re con-
strained by the cultural conditions their followers have come to expect. Exhibit 16-7
provides some findings from selected examples of cross-cultural leadership studies.

• Korean leaders are expected to be paternalistic toward employees. Exhibit 16-7

• Arab leaders who show kindness or generosity without being asked to do so Cross-Cultural Leadership
are seen by other Arabs as weak.

• Chinese leaders are expected to stay positive when facing attacks.

• European leaders are expected to be more action oriented.

• Japanese leaders are expected to be humble and speak frequently.

• Latin American leaders should not feel rejected when others behave formally.

• Scandinavian and Dutch leaders who single out individuals with public praise
are likely to embarrass, not energize, those individuals.

• Effective leaders in Malaysia are expected to show compassion while using
more of an autocratic than a participative style.

• Effective German leaders are characterized by high performance orientation,
low compassion, low self-protection, low team orientation, high autonomy, and
high participation.

• Effective leaders in Sub-Saharan Africa build deep relationships and close
teamwork.

Sources: Based on “Leadership Across Cultures,” Harvard Business Review, www.hbr.org, May 2015;
J. C. Kennedy, “Leadership in Malaysia:Traditional Values, International Outlook,” Academy of Management
Executive, August 2002, pp. 15–17; F. C. Brodbeck, M. Frese, and M. Javidan, “Leadership Made in Germany:
Low on Compassion, High on Performance,” Academy of Management Executives, February 2002, pp. 16–29;
M. F. Peterson and J. G. Hunt, “International Perspectives on International Leadership,” Leadership Quarterly,
Fall 1997, pp. 203–231; R. J. House and R. N. Aditya, “The Social Scientific Study of Leadership: Quo Vadis?”
Journal of Management, vol. 23, no. 3, 1997, p. 463; and R. J. House, “Leadership in theTwenty-First Cen-
tury,” in The Changing Nature of Work, ed. A Howard (San Francisco: Jossey-Bass, 1995), p. 442.

574 Part 5 Leading

F U T U R E V I S I O N Flexible Leadership

As organizations become flatter (that is, fewer hierarchi- conditions, focus on the most important tasks at hand
and present a confident demeanor when others may
cal levels) and more globally and technologically inter- be panicking or at a loss as to what to do; and (3) be a
connected, old leadership models will become outdated. leader who listens, encourages participation, recognizes
Although the three elements of leadership—the leader, that others’ needs are as important as your own, encour-
the followers, and the situation—will still be part of the ages and supports collaboration in achieving common
whole leadership equation, how these three elements goals—that is, a leader who puts people first. After all,
interact to successfully accomplish a team’s mission without people, leaders are nothing.
and goals is changing. Successful leaders in tomorrow’s
workplaces will need to be more like chameleons, adapt- If your professor has chosen to assign this, go to
ing to complex and dynamic environments. Under these www.mymanagementlab.com to discuss the follow-
circumstances, leaders can do three things: (1) share re- ing questions.
sponsibility and accountability by empowering employ-
ees; recognize that “leading” can come from anywhere TALK ABOUT IT 1:  Why are old leadership models
and everywhere and that sometimes the best approach becoming outdated?
may be to step out of the way and let someone else take
charge; (2) keep calm and stay focused in the midst of TALK ABOUT IT 2: Without people, leaders are
the fast pace and the uncertainty; when faced with such nothing. What does this mean?

Because most leadership theories were developed in the United States, they have an
American bias. They emphasize follower responsibilities rather than rights; assume
self-gratification rather than commitment to duty or altruistic motivation; assume
centrality of work and democratic value orientation; and stress rationality rather
than spirituality, religion, or superstition.77 However, the GLOBE research program,
which we first introduced in Chapter 3, is the most extensive and comprehensive
cross-cultural study of leadership ever undertaken. The GLOBE study found that
leadership has some universal aspects. Specifically, a number of elements of trans-
formational leadership appear to be associated with effective leadership regardless
of what country the leader is in.78 These elements include vision, foresight, providing
encouragement, trustworthiness, dynamism, positiveness, and proactiveness. The
results led two members of the GLOBE team to conclude that “effective business
leaders in any country are expected by their subordinates to provide a powerful and
proactive vision to guide the company into the future, strong motivational skills to
stimulate all employees to fulfill the vision, and excellent planning skills to assist in
implementing the vision.”79 Some people suggest that the universal appeal of these
transformational leader characteristics is due to the pressures toward common tech-
nologies and management practices as a result of global competitiveness and multi-
national influences.

It’s Your Career Leadership Transition—If your instructor is using Pearson MyLab Management, log
onto mymanagementlab.com and test your leadership transition knowledge. Be sure to
refer back to the chapter opener!

Becoming an Effective Leader

Organizations need effective leaders. Two issues pertinent to becoming an effective
leader are leader training and recognizing that sometimes being an effective leader
means not leading. Let’s take a look at these issues.

Chapter 16  Leadership 575

LEADER TRAINING  Organizations around the globe Global executive leadership programs at
spend billions of dollars, yen, and euros on leadership train- Ford Motor Company develop effective
ing and development. In the United States alone, it has been leaders such as Mark Fields, a 25-year Ford
estimated that companies spend $70.6 billion a year on for- employee who leads the company as CEO
mal training and development.80 These efforts take many and president. Ford offers a wide range
forms—from $50,000 leadership programs offered by uni- of leadership development programs for
versities such as Harvard and organizations such as GE to employees at all levels that focus on fostering
sailing experiences at the Outward Bound School. Although functional and technical excellence, risk
much of the money spent on leader training may provide taking, decision making, managing change,
doubtful benefits, our review suggests that managers can do and entrepreneurial thinking.
some things to get the maximum effect from such training.81 Source: Paul Warner, Contributor/Getty Images
Still, there is some consensus about characteristics of effec- Entertainment/Getty Images
tive leadership training. One is contextualization (ensuring
that learning is set in the strategy and culture of the organi- FYI
zation), and another is personalization (enabling participants
to seek out learning related to their aspirations).82 The percentage of women in lead-
ership positions varies by country:
First, let’s recognize the obvious. Some people don’t have what it takes to be a
leader. Period. For instance, evidence indicates that leadership training is more likely • 45 percent in Russia.
to be successful with individuals who are high self-monitors rather than with low self-
monitors. Such individuals have the flexibility to change their behavior as different sit- • 39 percent in the Philippines and
uations may require. In addition, organizations may find that individuals with higher Lithuania.
levels of a trait called motivation to lead are more receptive to leadership development
opportunities.84 • 37 percent in Estonia.

What kinds of things can individuals learn that might be related to being a more • 16 percent in India.
effective leader? It may be a bit optimistic to think that “vision-creation” can be taught,
but implementation skills can be taught. People can be trained to develop “an under- • 15 percent in Germany.
standing about content themes critical to effective visions.”85 We can also teach skills
such as trust-building and mentoring. And leaders can be taught situational analysis • 7 percent in Japan.83
skills. They can learn how to evaluate situations, how to modify situations to make
them fit better with their style, and how to assess which leader behaviors might be most
effective in given situations.
SUBSTITUTES FOR LEADERSHIP  Despite the belief that some leadership
style will always be effective regardless of the situation, leadership may not always
be important! Research indicates that, in some situations, any behaviors a leader
exhibits are irrelevant. In other words, certain individual, job, and organizational
variables can act as “substitutes for leadership,” negating the influence of the
leader.86

For instance, follower characteristics such as experience, training, professional
orientation, or need for independence can neutralize the effect of leadership. These
characteristics can replace the employee’s need for a leader’s support or ability
to create structure and reduce task ambiguity. Similarly, jobs that are inherently
unambiguous and routine or intrinsically satisfying may place fewer demands on
leaders. Finally, such organizational characteristics as explicit formalized goals,
rigid rules and procedures, or cohesive work groups can substitute for formal
leadership.

576 Part 5 Leading PREPARING FOR: Exams/Quizzes

Chapter 16

CHAPTER SUMMARY by Learning Objectives

LO16.1 DEFINE leader and leadership.
LO16.2
A leader is someone who can influence others and who has managerial authority. Lead-
LO16.3 ership is a process of leading a group and influencing that group to achieve its goals.
Managers should be leaders because leading is one of the four management functions.
LO16.4
COMPARE and contrast early theories of leadership.

Early attempts to define leader traits were unsuccessful, although later attempts found
eight traits associated with leadership.

The University of Iowa studies explored three leadership styles. The only conclu-
sion was that group members were more satisfied under a democratic leader than under
an autocratic one. The Ohio State studies identified two dimensions of leader behav-
ior—initiating structure and consideration. A leader high in both those dimensions
at times achieved high group task performance and high group member satisfaction,
but not always. The University of Michigan studies looked at employee-oriented lead-
ers and production-oriented leaders. They concluded that leaders who were employee
oriented could get high group productivity and high group member satisfaction. The
managerial grid looked at leaders’ concern for production and concern for people and
identified five leader styles. Although it suggested that a leader who was high in con-
cern for production and high in concern for people was the best, there was no substan-
tive evidence for that conclusion.

As the behavioral studies showed, a leader’s behavior has a dual nature: a focus on
the task and a focus on the people.

DESCRIBE the three major contingency theories of leadership.

Fiedler’s model attempted to define the best style to use in particular situations.
He measured leader style—relationship oriented or task oriented—using the least-
preferred coworker questionnaire. Fiedler also assumed a leader’s style was fixed. He
measured three contingency dimensions: leader–member relations, task structure, and
position power. The model suggests that task-oriented leaders performed best in very
favorable and very unfavorable situations, and relationship-oriented leaders performed
best in moderately favorable situations.

Hersey and Blanchard’s situational leadership theory focused on followers’ readi-
ness. They identified four leadership styles: telling (high task–low relationship), selling
(high task–high relationship), participating (low task–high relationship), and delegat-
ing (low task–low relationship). They also identified four stages of readiness: unable
and unwilling (use telling style), unable but willing (use selling style), able but unwill-
ing (use participative style), and able and willing (use delegating style).

The path-goal model developed by Robert House identified four leadership behav-
iors: directive, supportive, participative, and achievement oriented. He assumed that
a leader can and should be able to use any of these styles. The two situational con-
tingency variables were found in the environment and in the follower. Essentially, the
path-goal model says that a leader should provide direction and support as needed;
that is, structure the path so the followers can achieve goals.

DESCRIBE contemporary views of leadership.

Leader–member exchange theory (LMX) says that leaders create in-groups and out-
groups and those in the in-group will have higher performance ratings, less turnover,
and greater job satisfaction.

Chapter 16  Leadership 577

LO16.5 A transactional leader exchanges rewards for productivity where a transforma-
tional leader stimulates and inspires followers to achieve goals.

A charismatic leader is an enthusiastic and self-confident leader whose person-
ality and actions influence people to behave in certain ways. People can learn to be
charismatic. A visionary leader is able to create and articulate a realistic, credible, and
attractive vision of the future.

Authentic leadership focuses on the moral aspects of being a leader. Ethical lead-
ers create a culture in which employees feel that they could and should do a better job.
A team leader has two priorities: manage the team’s external boundary and facilitate
the team process. Four leader roles are involved: liaison with external constituencies,
troubleshooter, conflict manager, and coach.

DISCUSS twenty-first century issues affecting leadership.

The five sources of a leader’s power are legitimate (authority or position), coercive
(punish or control), reward (give positive rewards), expert (special expertise, skills, or
knowledge), and referent (desirable resources or traits).

Today’s leaders face the issues of managing power, developing trust, empowering
employees, leading across cultures, and becoming an effective leader.

Pearson MyLab Management

Go to mymanagementlab.com to complete the problems marked with
this icon .

REVIEW AND DISCUSSION QUESTIONS

16-1. What are the eight key traits associated with 16-6. Can a leader get power from multiple sources?
leadership that summarize the four main theories? Discuss.

16-2. Briefly explain what a managerial grid is. 16-7. Do you think most managers in real life use a
contingency approach to increase their leadership
16-3. Explain Hersey and Blanchard’s situational leadership effectiveness? Explain.
styles and the two key behaviors associated with it.
16-8. Do the followers make a difference in whether a
16-4. What is the purpose of a charismatic leader’s leader is effective? Discuss.
enthusiasm and self-confidence?

16-5. You are a team leader. What are your daily priorities
for your team?

Pearson MyLab Management

If your professor has assigned these, go to mymanagementlab.com for the
following Assisted-graded writing questions:

16-9. Define leader and leadership and explain why managers should be leaders.

16-10. Which source of leader’s power is most effective and why?

578 Part 5 Leading

PREPARING FOR: My Career

PERSONAL INVENTORY ASSESSMENTS P I A PERSONAL
INVENTORY
ASSESSMENT

Leadership Style Inventory

What’s your leadership style? Take this PIA and find out!

ETHICS DILEMMA

Have you ever watched the show Undercover Boss? It ranging from Waste Management and White Castle to
features a company’s “boss” working undercover in his or NASCAR and Family Dollar have participated.
her own company to find out how the organization really
works. Typically, the executive works undercover for a week, 16-11. What do you think? Is it ethical for a leader to go
and then the employees the leader has worked with are undercover in his or her organization? Why or why not?
summoned to company headquarters and either rewarded
or punished for their actions. Bosses from organizations 16-12. What ethical issues could arise? How could managers
deal with those issues?

SKILLS EXERCISE  Developing Your Choosing an Effective Leadership Style Skill

About the Skill answering member questions, working to establish a
Effective leaders are skillful at helping the groups they lead foundation of trust and openness, modeling the behaviors
be successful as the group goes through various stages of you expect from the team members, and clarifying the
team’s goals, procedures, and expectations.
development. No leadership style is consistently effective.
Situational factors, including follower characteristics, must • If your team is in the storming stage, you want to exhibit
be taken into consideration in the selection of an effective certain leader behaviors. These behaviors include identifying
leadership style. The key situational factors that determine sources of conflict and adopting a mediator role,
leadership effectiveness include stage of group development, encouraging a win-win philosophy, restating the team’s
task structure, position power, leader–member relations, vision and its core values and goals, encouraging open
the work group, employee characteristics, organizational
culture, and national culture. discussion, encouraging an analysis of team processes
in order to identify ways to improve, enhancing team
Steps in Practicing the Skill cohesion and commitment, and providing recognition to
individual team members as well as the team.
You can choose an effective leadership style if you use the • If your team is in the norming stage, you want to exhibit
following six suggestions.
• Determine the stage in which your group or team is
certain leader behaviors. These behaviors include clarifying
operating: forming, storming, norming, or performing. the team’s goals and expectations, providing performance
feedback to individual team members and the team,
Because each team stage involves specific and different encouraging the team to articulate a vision for the future,
issues and behaviors, it’s important to know in which
stage your team is. Forming is the first stage of group and finding ways to publicly and openly communicate the
development, during which people join a group and then team’s vision.
help define the group’s purpose, structure, and leadership. • If your team is in the performing stage, you want to
Storming is the second stage, characterized by intragroup exhibit certain leader behaviors. These behaviors
conflict. Norming is the third stage, characterized by close include providing regular and ongoing performance
relationships and cohesiveness. Performing is the fourth feedback, fostering innovation and innovative
stage, when the group is fully functional.
• If your team is in the forming stage, you want to exhibit behavior, encouraging the team to capitalize on its
strengths, celebrating achievements (large and small),
certain leader behaviors. These include making certain and providing the team whatever support it needs to
continue doing its work.
that all team members are introduced to one another,

Chapter 16  Leadership 579

• Monitor the group for changes in behavior and adjust your to exhibit? Give some specific examples of the types
of leadership behaviors he or she used. Evaluate the
leadership style accordingly. Because a group is not a static leadership style. Was it appropriate for the group? Why
entity, it will go through up periods and down periods. or why not? What would you have done differently?
You should adjust your leadership style to the needs of Why?
the situation. If the group appears to need more direction 2.  Observe a sports team (either college or professional)
from you, provide it. If it appears to be functioning that you consider extremely successful and one
at a high level on its own, provide whatever support is that you would consider not successful. What
necessary to keep it functioning at that level. leadership styles appear to be used in these team
Practicing the Skill situations? Give some specific examples of the types
The following suggestions are activities you can do to of leadership behaviors you observe. How would
practice the behaviors in choosing an effective leadership you evaluate the leadership style? Was it appropriate
style. for the team? Why or why not? To what degree do
you think leadership style influenced the team’s
1.  Think of a group or team to which you currently outcomes?
belong or of which you have been a part. What type
of leadership style did the leader of this group appear

WORKING TOGETHER  Team Exercise

So what really makes a good leader? Is it giving people the them. Write down as many positives about your relationship
time and space to grow as individuals? Giving people that with that leader. Share your thoughts with a small group of
vital opportunity to make their own decisions? Or have three or four members. Try to collate the ideal characteristics
individual responsibilities perhaps? Think of a leader you discussed. Once you’ve done this, share your ideas with the
have encountered so far and recall what was good about rest of the class.

MY TURN TO BE A MANAGER

• Think of the different organizations to which you belong. • Here’s a list of leadership skills. Choose two and develop
Note the different styles of leadership used by the leaders a training exercise that will help develop or improve that
in these organizations. Write a paper describing these skill: building employee communities; building teams;
individual’s style of leading (no names, please) and coaching and motivating others; communicating with
evaluate the styles being used. impact, confidence, and energy; leading by example;
• Write down three people you consider effective leaders. leading change; making decisions; providing direction and
focus; and valuing diversity.
Make a bulleted list of the characteristics these
individuals exhibit that you think make them effective • Select one of the topics in the section on leadership issues
leaders. in the twenty-first century. Do some additional research
• Think about the times you have had to lead. Describe on the topic, and put your findings in a bulleted list that
you are prepared to share in class. Be sure to cite your
your own personal leadership style. What could you do to sources.
improve your leadership style? Come up with an action
plan of steps you can take. Put all this information into a • Interview three managers about what they think it takes
brief paper. to be a good leader. Write up your findings in a report
• Managers say that increasingly they must use influence and be prepared to present it in class.

to get things done. Do some research on the art of • Try out your leadership skills! Volunteer for a leadership
persuasion. Make a bulleted list of suggestions you find position with an organization you are involved in.
on how to improve your skills at influencing others.

580 Part 5 Leading

1CASE APPLICATION Indra Nooyi: An Inspiring
Leader

PepsiCo, Inc. is regarded as the second largest food and beverage business in the world,
and a large part of the success of this multinational corporation can be attributed to
its leader. Indra Nooyi, the Chairperson and CEO, is an inspiring and visionary leader
for several reasons. First, she has been one of the first women outside America to
become CEO of such a large multinational. Second, for over a decade, she has fea-
tured on Forbes magazine’s list of the 100 most influential women in the world. Third,
Nooyi has been known to be an employee-oriented and a customer-oriented leader,
with her innovative strategies inspiring and forging the way for women worldwide.

Being particularly attentive to PepsiCo’s customers’ needs and preferences, Nooyi
uses every occasion to better understand and improve the rapidly changing beverage
patterns. In a recent business trip to China, she toured different cities in the region for
ten days, closely studying the strategic market for PepsiCo. In an interview with David
Rubenstein at Bloomberg, she shared a funny anecdote that confirms her attention to
customers’ preferences—every time she is invited by a friend, she tries to find a way to
go into the kitchen and look at what products they use every day (also hoping to find
some products of the PepsiCo group).

Nooyi is visionary in many of her decisions. In 2012, she decided to create a design
team, headed by the Italian designer Mauro Porcini (former Head of Global Design at
3M), and assigned him the task of refreshing the company’s brand, rethink the shape
of the bottles, and redesigning the vending machines. That was a pioneering decision
in the food and drink industry at that time (now such decision has been imitated by
competitors) and even people inside PepsiCo were unsure about the this decision at the
beginning. However, this audacious choice revealed to be successful as the company
could improve the top land bottom line and become more appealing among custom-
ers and restaurants. For example, the new fountain machine designed by the Design
& Innovation Center, which enables customers to select their flavor coke from more
than 1,000 combinations, has been a great success and one of the reason for which the
restaurant chain Buffalo Wild Wings decided to switch from Coke to Pepsi in 2013.

Nooyi is a supportive leader who makes of women’s innate caring attitude a big
strength of her leadership style. For example, she conveys a deep sense of gratitude
to all her employees for the effort and energy they put in the company. To express this
feeling, she sometimes writes gratitude letters to the executive’s parents to let them
know how well their sons or daughters are doing for PepsiCo and to give them credit
for such amazing achievements.

Notably, not forgetting her privileged condition of being a woman who has been
able to break the highest glass ceiling in the company, Nooyi is fully committed to
promote diversity and inclusion at all organizational levels. In 2010, the company
launched a survey with women manager, who were good represented in middle-level
management positions but very low represented in top-level positions to understand
the reasons of such under-representation. Women confessed to lack self-confidence
and to believe that men were more capable to make themselves noticeable in the com-
pany and cultivate high influential networks, something they were less good in doing.
In response to this, PepsiCo created a leadership development program for women,
called “Strategies for Success,” aimed at helping women boosting their self-confidence
and guiding them in rising up through the organization. In just two years, women’s
representation in senior positions in the operation team raised from 0 to 33 percent.

When asked about her secret, Indra has no doubts: the family. She attributes
most of her strength to her family and to teachings and example received by her par-
ents. She recalls that in India, at the time she was an adolescent, the preoccupation of
most parents was to find a husband for their daughters. Her parents were different in

Chapter 16  Leadership 581

many things, for instance supporting Nooyi’s decision to leave India for studying in
the United States. Moreover, since her childhood, they sought to make her (and the
sister) more confident and aware of their unique talents. A game that the mother was
used to play with them during the dinners consisted of pretending that they became a
President or a very important ministry of India and, every evening, they had to write
a list of things that they would have done in such an important position. Albeit it was
only a game, Nooyi confessed that it helped her a lot to boost her self-confidence and
inform her leadership style and, probably, without that evening ritual she would have
not been capable of achieving what she got today in her life- and being the so-highly
loved leader she is.87

DISCUSSION QUESTIONS
16-13. What leadership models/theories/issues do you see in this case? List and

describe.
16-14. What do you think about Indra Nooyi’s decision to create a design unit at

PepsiCo? Is it appropriate for the food and drink industry? Why or why not?
16-15. How do you think leadership is changing in contemporary society? What

behaviors exhibited by Indra Nooyi indicate such change?
16-16. What did the case teach you about leadership?

2CASE APPLICATION Leadership Development
at L’Oréal

Jean Paul Agon, the president and CEO of L’Oréal, joined the company right after his
university graduation in 1978 and has continued to grow as a leader over his almost 40
years with the company.88 Headquartered in France with more than 80,000 employees
around the globe, L’Oréal is the world’s largest cosmetics company. Today, L’Oréal
management still believes leadership development starts at the beginning of your ca-
reer and continues throughout it.

Each year almost 650 recent university graduates join one of L’Oréal’s manage-
ment training programs. The format of each program varies based on geographic lo-
cation, with trainees spending between 6 and 18 months taking on different missions
throughout the organization to learn the business. Each trainee has a personal devel-
opment plan that includes learning about the organization, understanding the busi-
ness models utilized by the different brands, and developing relationships throughout
the organization. The program immerses the trainee into the organizational culture
and the trainee learns about what it takes to succeed in the work environment. Most
trainees are also connected with a mentor to answer questions and provide guidance.

A significant contributor to L’Oréal’s overall success is the cross-cultural aware-
ness of managers who often lead diverse teams developing customized products for
different regions of the world. While some of these leaders are recruited externally,
many are developed through a specific international management training program
that includes a 12-month rotation through Paris, New York, Singapore, and Rio. This
program seeks out graduates who are curious and able to adapt to other cultures from
international business schools, knowing this skill set is important to help tailor inter-
national brands to local markets.

Doing business globally also requires ethical leadership, which is an important
component of the firm’s leadership development. L’Oréal has been recognized for
their efforts on the ethics front. In 2016, the Ethics & Compliance Initiative recognized

582 Part 5 Leading

L’Oréal’s innovation in ethical leadership. The company was also named as one of the
World’s Most Ethical Companies by Ethisphere.

L’Oréal’s leadership development efforts do not stop with recent graduates. In
fact, managers at all levels of the organization have the opportunity to further develop
their leadership ability through a variety of programs. These programs are primarily
based on coaching leaders and are offered with the belief that an investment in leaders
goes farther as those leaders then develop their own teams. Managers throughout the
organization are held accountable for the development of their employees. Those that
fail at developing their own teams, even if they meet business outcomes, lose out on
performance rewards. All this emphasizes this important point: Leadership matters at
L’Oréal.

DISCUSSION QUESTIONS
16-17. Why do you think L’Oréal invests so much in leadership development?
16-18. What role does a mentor play in leadership development?
16-19. Why is cross-cultural awareness important for leaders at a company such as

L’Oréal?
16-20. Do you think a management training program would be a good way to start a

career with a company? Why or why not?

ENDNOTES

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East, January 18, 2016, http://www.cnmeonline.com/cio- Completely—Now What?” Harvard Business Review, March–
spotlight/man-of-the-people/ (accessed January 6, 2017). April 1989, pp. 135–142.
63. See J. R. P. French Jr. and B. Raven, “The Bases of Social 71. P. H. Kim, K. T. Dirks, and C. D. Cooper, “The Repair
Power,” in Group Dynamics: Research and Theory, ed. of Trust: A Dynamic Bilateral Perspective and Multilevel
D. Cartwright and A. F. Zander (New York: Harper Conceptualization,” Academy of Management Review, July
& Row, 1960), pp. 607–623; P. M. Podsakoff and C. A. 2009, pp. 401–422; R. Zemke, “The Confidence Crisis,”
Schriesheim, “Field Studies of French and Raven’s Bases Training, June 2004, pp. 22–30; J. A. Byrne, “Restoring Trust
of Power: Critique, Reanalysis, and Suggestions for Future in Corporate America,” BusinessWeek, June 24, 2002, pp. 30–
Research,” Psychological Bulletin, May 1985, pp. 387–411; 35; S. Armour, “Employees’ New Motto: Trust No One,” USA
R. K. Shukla, “Influence of Power Bases in Organizational Today, February 5, 2002, p. 1B; J. Scott, “Once Bitten, Twice
Decision Making: A Contingency Model,” Decision Sciences, Shy: A World of Eroding Trust,” New York Times, April 21,
July 1982, pp. 450–470; D. E. Frost and A. J. Stahelski, “The 2002, p. WK5; J. Brockner, P. A. Siegel, J. P. Daly, T. Tyler,
Systematic Measurement of French and Raven’s Bases of and C. Martin, “When Trust Matters: The Moderating Effect
Social Power in Workgroups,” Journal of Applied Social of Outcome Favorability,” Administrative Science Quarterly,
Psychology, April 1988, pp. 375–389; and T. R. Hinkin and September 1997, p. 558; and J. Brockner, P. A. Siegel, J. P.
C. A. Schriesheim, “Development and Application of New Daly, T. Tyler, and C. Martin, “When Trust Matters: The
Scales to Measure the French and Raven (1959) Bases of Moderating Effect of Outcome Favorability,” Administrative
Social Power,” Journal of Applied Psychology, August 1989, Science Quarterly, September 1997, p. 558.
pp. 561–567. 72. T. Vinas, “DuPont: Safety Starts at the Top,” Industry Week,
64. D. Sturt and T. Nordstrom, “5 Traits of the Worst Leaders July 2002, p. 55.
and How to Avoid Them,” Forbes online, www.forbes.com, 73. A. Srivastava, K. M. Bartol, and E. A. Locke,
April 28, 2016. “Empowering Leadership in Management Teams: Effects
65. J. M. Kouzes and B. Z. Posner, Credibility: How Leaders on Knowledge Sharing, Efficacy, and Performance,”
Gain and Lose It, and Why People Demand It (San Francisco: Academy of Management Journal, December 2006,
Jossey-Bass, 1993), p. 14. pp. 1239–1251; P. K. Mills and G. R. Ungson, “Reassessing
66. Based on F. D. Schoorman, R. C. Mayer, and J. H. Davis, the Limits of Structural Empowerment: Organizational
“An Integrative Model of Organizational Trust: Past, Constitution and Trust as Controls,” Academy of
Present, and Future,” Academy of Management Review, Management Review, January 2003, pp. 143–153;
April 2007, pp. 344–354; G. M. Spreitzer and A. K. Mishra, W. A. Rudolph and M. Sashkin, “Can Organizational
“Giving up Control Without Losing Control,” Group & Empowerment Work in Multinational Settings?,” Academy
Organization Management, June 1999, pp. 155–187; R. C. of Management Executive, February 2002, pp. 102–115;
Mayer, J. H. Davis, and F. D. Schoorman, “An Integrative C. Gomez and B. Rosen, “The Leader–Member Link
Model of Organizational Trust,” Academy of Management Between Managerial Trust and Employee Empowerment,”
Review, July 1995, p. 712; and L. T. Hosmer, “Trust: The Group & Organization Management, March 2001, pp.
Connecting Link Between Organizational Theory and 53–69; C. Robert and T. M. Probst, “Empowerment and
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April 1995, p. 393. Poland, and India,” Journal of Applied Psychology, October
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Interpersonal Trust in the Workplace,” Psychological Reports, and J. A. Heffner, “Defining and Measuring Employee
October 1993, pp. 563–573. Empowerment,” Journal of Applied Behavioral Science,
68. H. H. Tan and C. S. F. Tan, “Toward the Differentiation of September 1999, p. 373; R. C. Ford and M. D. Fottler,
Trust in Supervisor and Trust in Organization,” Genetic, Social, “Empowerment: A Matter of Degree,” Academy of
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69. H. H. Brower, S. W. Lester, M. A. Korsgaard, and B. R. W. A. Rudolph, “Navigating the Journey to
Dineen, “A Closer Look at Trust Between Managers and Empowerment,” Organizational Dynamics, Spring 1995,
Subordinates: Understanding the Effects of Both Trusting pp. 19–32.
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Management, April 2009, pp. 327–347; R. C. Mayer and January 8, 2001, pp. 190–192.
M. B. Gavin, “Trust in Management and Performance: Who 75. M. Elliott, “Who Needs Charisma?” Time, July 20, 2009,
Minds the Shop While the Employees Watch the Boss?” pp. 35–38.

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76. A. Ignatius and D. McGinn, “Novo Nordisk CEO Lars 84. K. Y. Chan and F. Drasgow, “Toward a Theory of
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Leadership Attractive to Women,” Forbes online, www.forbes.
com, March 7, 2016.

Chapter 17 Motivation

It’s Your Career

What Motivates You?

What’s important to you or excites you in a job?
Some say “money.” Others might say “challenging
work” or “fun coworkers.” If you have a solid
grounding in and understanding of what motivates
you, it can help you make smart career and job
choices.

The following is a list of 12 factors that might
enter into your decision in selecting a job. Read
over the list.Then rank order the items in terms
of importance, with 1 being highest in impor-
tance and 12 being lowest in importance.

Source: Artplay711/iStock/Getty ________High pay
________Good working conditions
A key to success in ________Friendly and supportive colleagues
management and in your ________Flexible working hours
career is knowing what ________Opportunities for growth and new challenges
motivates YOU. ________Considerate boss
________Inclusion in decisions that affect you
________Fair and equitable treatment
________Job security
________Promotion potential
________Excellent benefits (vacation time, retirement contributions, etc.)
________Freedom and independence

Now, compare your list with others in your class. How similar were your
preferences? It’s rare for lists to be exactly the same.This tells us that peo-
ple differ in terms of what they value. Second, use these results to better
understand what you’re looking for in a job.

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Learning Objectives

17.1 Define motivation.
17.2 Compare and contrast early theories of motivation.
17.3 Compare and contrast contemporary theories of motivation.

●●Develop your skill at motivating employees.
17.4 Discuss current issues in motivation.

●●Know how to identify what motivates you.

Successful managers need to understand that what motivates them personally may
have little or no effect on others. Just because you’re motivated by being part of a
cohesive work team, don’t assume everyone is. Or just because you’re motivated by
your job doesn’t mean that everyone is. Effective managers who get employees to put
forth maximum effort know how and why those employees are motivated and tailor
motivational practices to satisfy their needs and wants.

WHAT is motivation?

LO17.1 Jetstar Asia, a low-fare carrier based in Singapore, encourages its cabin
crew to share compliments with the entire workforce via internal social
media. When passengers say good things about crew members, everyone in the organiza-
tion hears the news and is proud of their peers and their employer. Similarly, when employ-
ees take part in corporate social responsibility activities, they share their experiences with
colleagues. Jetstar Asia also operates Bravo, a social media system where employees can
compliment colleagues for actions that embody the airline’s values. The airline holds quar-
terly and yearly award ceremonies for Bravo winners. One recent winner was honored for
expediting the return of a passenger’s wallet inadvertently left behind in a hotel miles away.
An airline with personality, Jetstar Asia encourages cabin crew to celebrate special days
like Singapore’s National Day with fun events during flights. The airline has a mentoring
program for younger employees and a “Career Progression” plan for older employees that
want to transition to specialized or non-flight positions as their circumstances change. No
wonder Jetstar Asia’s employees of all ages and at all levels are engaged and motivated.1
Have you ever even thought about how to motivate someone? It’s an important
topic in management, and researchers have long been interested in it.2 All managers
need to be able to motivate their employees, which first requires understanding what
motivation is. Let’s begin by pointing out what motivation is not. Why? Because many
people incorrectly view motivation as a personal trait; that is, they think some people
are motivated and others aren’t. Our knowledge of motivation tells us that we can’t
589

590 Part 5 Leading

motivation label people that way because individuals differ in motivational drive and their overall
The process by which a person’s efforts motivation varies from situation to situation. For instance, you’re probably more moti-
are energized, directed, and sustained vated in some classes than in others.
toward attaining a goal
Motivation refers to the process by which a person’s efforts are energized, directed,
and sustained toward attaining a goal.3 This definition has three key elements: energy,
direction, and persistence.4

The energy element is a measure of intensity, drive, and vigor. A motivated person
puts forth effort and works hard. However, the quality of the effort must be consid-
ered as well as its intensity. High levels of effort don’t necessarily lead to favorable job
performance unless the effort is channeled in a direction that benefits the organization.
Effort directed toward and consistent with organizational goals is the kind of effort we
want from employees. Finally, motivation includes a persistence dimension. We want
employees to persist in putting forth effort to achieve those goals.

Motivating high levels of employee performance is an important organizational
concern, and managers keep looking for answers. For instance, a Gallup Poll found a
large majority of U.S. employees—some 68 percent—are disengaged.5 As the research-
ers stated, “These employees have essentially ‘checked out.’ They’re sleepwalking

through their workday, putting time, but not energy or pas-
sion, into their work.”6 The number globally is even more
disturbing—some 87 percent are not excited about their
work.7 It’s no wonder then that both managers and academ-
ics want to understand and explain employee motivation.

EARLY theories of motivation

LO17.2 We begin by looking at four early motiva-
tion theories: Maslow’s hierarchy of needs,
McGregor’s Theories X and Y, Herzberg’s two-factor theory,
and McClelland’s three-needs theory. Although more valid
explanations of motivation have been developed, these early
theories are important because they represent the foundation
from which contemporary motivation theories were devel-
Motivators for employees of Procter & oped and because many practicing managers still use them.
Gamble’s factory in Urlati, Romania, include
satisfying their lower-order needs of a salary, a Maslow’s Hierarchy of Needs Theory
safe job, benefits, and job security. According
to Maslow’s hierarchy of needs theory, after Having a car to get to work is a necessity for many workers. When two crucial employ-
these needs are met, managers can motivate ees of Vurv Technology in Jacksonville, Florida, had trouble getting to work, owner
them by forming work groups and giving them Derek Mercer decided to buy two inexpensive used cars for the employees. One of the
opportunities for socializing to satisfy their employees who got one of the cars said it wasn’t the nicest or prettiest car, but it gave
needs of friendship and belongingness. him such a sense of relief to know that he had a reliable way to get to work. So when
Source: Aga Luczakowska/Bloomberg/Getty the company needed him to work hard, he was willing to do so.8 Derek Mercer under-
Images stands employee needs and their impact on motivation. The first motivation theory
we’re going to look at addresses employee needs.
hierarchy of needs theory
Maslow’s theory that human needs— The best-known theory of motivation is probably Abraham Maslow’s hierarchy
physiological, safety, social, esteem, of needs theory.9 Maslow was a psychologist who proposed that within every person
and self-actualization—form a sort of is a hierarchy of five needs:
hierarchy
1. Physiological needs: A person’s needs for food, drink, shelter, sex, and other
physiological needs physical requirements.
A person’s needs for food, drink, shelter,
sexual satisfaction, and other physical 2. Safety needs: A person’s needs for security and protection from physical and
needs emotional harm as well as assurance that physical needs will continue to be met.

safety needs 3. Social needs: A person’s needs for affection, belongingness, acceptance, and
A person’s needs for security and friendship.
protection from physical and emotional
harm 4. Esteem needs: A person’s needs for internal esteem factors such as self-
respect, autonomy, and achievement and external esteem factors such as status,
recognition, and attention.

Chapter 17  Motivation 591

Self- Exhibit 17-1
Actualization
Maslow’s Hierarchy of Needs
Esteem
Social Source: A. H. Maslow, R. D. Frager, and
Safety J. Fadiman, Motivation and Personality,
Physiological 3rd Edition, © 1987. Reprinted and
electronically reproduced by permission
of Pearson Education, Inc., Upper Saddle
River, NJ.

5. Self-actualization needs: A person’s needs for growth, achieving one’s social needs
potential, and self-fulfillment; the drive to become what one is capable of A person’s needs for affection,
becoming. belongingness, acceptance, and
Maslow argued that each level in the needs hierarchy must be substantially satis- friendship
esteem needs
fied before the next need becomes dominant. An individual moves up the needs hierar- A person’s needs for internal factors
chy from one level to the next. (See Exhibit 17-1.) In addition, Maslow separated the such as self-respect, autonomy, and
five needs into higher and lower levels. Physiological and safety needs were considered achievement, and external factors such
lower-order needs; social, esteem, and self-actualization needs were considered higher- as status, recognition, and attention
order needs. Lower-order needs are predominantly satisfied externally while higher- self-actualization needs
order needs are satisfied internally. A person’s need to become what he or
she is capable of becoming
How does Maslow’s theory explain motivation? Managers using Maslow’s hierarchy
to motivate employees do things to satisfy employees’ needs. But the theory also says that Theory X
once a need is substantially satisfied, an individual is no longer motivated to satisfy that The assumption that employees dislike
need. Therefore, to motivate someone, you need to understand at what need level that per- work, are lazy, avoid responsibility, and
son is on in the hierarchy and focus on satisfying needs at or above that level. must be coerced to perform
Theory Y
Maslow’s needs theory was widely recognized during the 1960s and 1970s, espe- The assumption that employees are
cially among practicing managers, probably because it was intuitively logical and easy creative, enjoy work, seek responsibility,
to understand. But Maslow provided no empirical support for his theory, and several and can exercise self-direction
studies that sought to validate it could not.10

McGregor’s Theory X and Theory Y

Andy Grove, cofounder of Intel Corporation and now a senior advisor to the com-
pany, was known for being open with his employees. However, he was also known for
his tendency to yell. Intel’s current CEO, Paul Otellini, said, “When Andy was yelling
at you, it wasn’t because he didn’t care about you. He was yelling at you because he
wanted you to do better.”11 Although managers like Andy Grove want their employees
to do better, that approach might not have been the best way to motivate employees,
as McGregor’s Theory X and Theory Y suggest.

Douglas McGregor is best known for proposing two assumptions about human
nature: Theory X and Theory Y.12 Very simply, Theory X is a negative view of people
that assumes workers have little ambition, dislike work, want to avoid responsibility,
and need to be closely controlled to work effectively. Theory Y is a positive view that
assumes employees enjoy work, seek out and accept responsibility, and exercise self-
direction. McGregor believed that Theory Y assumptions should guide management
practice and proposed that participation in decision making, responsible and chal-
lenging jobs, and good group relations would maximize employee motivation. For
example, Walmart gives workers a significant role in decision making. Store associates
can provide input into what is sold locally. The company relies on associates’ judgment
because they interact with customers. Walmart’s U.S. CEO stated: “There is noth-
ing I like better than hearing about your [associates’] jobs, your ideas, your hopes
and dreams, and frustrations, and listening to how we can make your lives easier.”13
Clearly, this is an example of Walmart putting the philosophy of Theory Y manage-
ment into practice.

592 Part 5 Leading Motivators Hygiene Factors
• Achievement • Supervision
Exhibit 17-2 • Recognition • Company Policy
• Work Itself • Relationship with
Herzberg’s Two-Factor Theory • Responsibility
• Advancement Supervisor
Source: Based on F. Herzberg, B. Mausner, • Growth • Working Conditions
and B. B. Snyderman, The Motivation to • Salary
Work (NewYork: John Wiley, 1959). Extremely Satisfied • Relationship with Peers
• Personal Life
Neutral • Relationship with

Subordinates
• Status
• Security

Extremely Dissatisfied

FYI Unfortunately, no evidence confirms that either set of assumptions is valid or that
being a Theory Y manager is the only way to motivate employees. For instance, Jen-
• What motivates employees? A Hsun Huang, founder of Nvidia Corporation, an innovative and successful microchip
survey showed the following in manufacturer, has been known to use both reassuring hugs and tough love in motivat-
order of importance:15 ing employees. He also has little tolerance for screw-ups. In one meeting, he suppos-
96 percent Salary edly screamed at a project team for its tendency to repeat mistakes. “Do you suck?” he
95 percent Job security asked the stunned employees. “Because if you suck, just get up and say you suck.”14
92 percent My supervisor/ His message, delivered in classic Theory X style, was that if you need help, ask for it.
manager It’s a harsh approach, but in this case, it worked as employees knew they had to own
91 percent Training up to their mistakes and find ways to address them.
91 percent Performance
feedback Herzberg’s Two-Factor Theory
89 percent Leadership
87 percent Vacation/paid Frederick Herzberg’s two-factor theory (also called motivation–hygiene theory)
time off proposes that intrinsic factors are related to job satisfaction, while extrinsic factors are
85 percent Career associated with job dissatisfaction.16 Herzberg wanted to know when people felt excep-
advancement tionally good (satisfied) or bad (dissatisfied) about their jobs. (These findings are shown in
81 percent Involved in Exhibit 17-2.) He concluded that the replies people gave when they felt good about their
decisions jobs were significantly different from the replies they gave when they felt bad. Certain
75 percent Corporate characteristics were consistently related to job satisfaction (factors on the left side of the
culture exhibit), and others to job dissatisfaction (factors on the right side). When people felt good
about their work, they tended to cite intrinsic factors arising from the job itself such as
two-factor theory (motivation– achievement, recognition, and responsibility. On the other hand, when they were dissatis-
hygiene theory) fied, they tended to cite extrinsic factors arising from the job context such as company pol-
The motivation theory that intrinsic icy and administration, supervision, interpersonal relationships, and working conditions.
factors are related to job satisfaction and
motivation, whereas extrinsic factors are In addition, Herzberg believed the data suggested that the opposite of satisfac-
associated with job dissatisfaction tion was not dissatisfaction, as traditionally had been believed. Removing dissatisfy-
ing characteristics from a job would not necessarily make that job more satisfying (or
hygiene factors motivating). As shown in Exhibit 17-3, Herzberg proposed that a dual continuum
Factors that eliminate job dissatisfaction, existed: The opposite of “satisfaction” is “no satisfaction,” and the opposite of “dis-
but don’t motivate satisfaction” is “no dissatisfaction.”

motivators Again, Herzberg believed the factors that led to job satisfaction were separate and
Factors that increase job satisfaction and distinct from those that led to job dissatisfaction. Therefore, managers who sought to
motivation eliminate factors that created job dissatisfaction could keep people from being dissatis-
fied but not necessarily motivate them. The extrinsic factors that create job dissatisfac-
tion were called hygiene factors. When these factors are adequate, people won’t be dis-
satisfied, but they won’t be satisfied (or motivated) either. To motivate people, Herzberg
suggested emphasizing motivators, the intrinsic factors having to do with the job itself.

Herzberg’s theory enjoyed wide popularity from the mid-1960s to the early 1980s,
despite criticisms of his procedures and methodology. Although some critics said his
theory was too simplistic, it has influenced how we currently design jobs, especially
when it comes to job enrichment, which we’ll discuss at a later point in this chapter.

TRADITIONAL VIEW Chapter 17  Motivation 593
Satisfied
Dissatisfied Exhibit 17-3

Contrasting Views of Satisfaction–
Dissatisfaction

Motivators HERZBERG’S VIEW Hygiene Factors

Satisfaction No Satisfaction No Dissatisfaction Dissatisfaction

If your professor has assigned this, go to www.mymanagementlab.com to watch a video Watch It 1!
titled: Rudi’s Bakery: Motivation and to respond to questions.

Three-Needs Theory three-needs theory
The motivation theory that says
David McClelland and his associates proposed the three-needs theory, which says three acquired (not innate) needs—
three acquired (not innate) needs are major motives in work.17 These three are the achievement, power, and affiliation—are
need for achievement (nAch), the drive to succeed and excel in relation to a set of major motives in work
standards; the need for power (nPow), the need to make others behave in a way they
would not have behaved otherwise; and the need for affiliation (nAff), the desire need for achievement (nAch)
for friendly and close interpersonal relationships. Of these three needs, the need for The drive to succeed and excel in
achievement has been researched the most. relation to a set of standards

People with a high need for achievement are striving for personal achievement need for power (nPow)
rather than for the trappings and rewards of success. They have a desire to do some- The need to make others behave in a
thing better or more efficiently than it’s been done before.18 They prefer jobs in which way that they would not have behaved
they can take personal responsibility for finding solutions to problems, in which they otherwise
can receive rapid and unambiguous feedback on their performance in order to tell
whether they’re improving, and in which they can set moderately challenging goals. need for affiliation (nAff)
High achievers avoid what they perceive to be very easy or very difficult tasks. Also, The desire for friendly and close
a high need to achieve doesn’t necessarily lead to being a good manager, especially interpersonal relationships
in large organizations. That’s because high achievers focus on their own accomplish-
ments, while good managers emphasize helping others accomplish their goals.19
McClelland showed that employees can be trained to stimulate their achievement
need by being in situations where they have personal responsibility, feedback, and
moderate risks.20 Indeed, good managers make a difference. One survey indicated
that 67 percent of employees whose managers helped them to grow and develop were
highly engaged.21

The other two needs in this theory haven’t been researched as extensively as the
need for achievement. However, we do know that the best managers tend to be high in
the need for power and low in the need for affiliation.22

All three of these needs can be measured by using a projective test (known as the
Thematic Apperception Test or TAT), in which respondents react to a set of pictures.
Each picture is briefly shown to a person who writes a story based on the picture. (See
Exhibit 17-4 for some examples.) Trained interpreters then determine the individual’s
levels of nAch, nPow, and nAff from the stories written.

If your professor has assigned this, go to www.mymanagementlab.com to complete the Write It!
Writing Assignment MGMT 14: Theories of Motivation.

594 Part 5 Leading

Exhibit 17-4

TAT Pictures 

Photo Source: Bill Aron/PhotoEdit

CONTEMPORARY theories of motivation

LO17.3 The theories we look at in this section represent current explanations
of employee motivation. Although these theories may not be as well
known as those we just discussed, they are supported by research.23 These contem-
porary motivation approaches include goal-setting theory, reinforcement theory, job
design theory, equity theory, expectancy theory, and high-involvement work practices.

goal-setting theory Goal-Setting Theory
The proposition that specific goals
increase performance and that difficult At Wyeth’s research division, scientists were given challenging new product quotas in
goals, when accepted, result in higher an attempt to bring more efficiency to the innovation process, and their bonuses were
performance than do easy goals contingent on meeting those goals.24 Before a big assignment or major class project
presentation, has a teacher ever encouraged you to “Just do your best”? What does
that vague statement mean? Would your performance on a class project have been
higher had that teacher said you needed to score a 93 percent to keep your A in the
class? Research on goal-setting theory addresses these issues, and the findings, as you’ll
see, are impressive in terms of the effect that goal specificity, challenge, and feedback
have on performance.25

Research provides substantial support for goal-setting theory, which says that
specific goals increase performance and that difficult goals, when accepted, result in
higher performance than do easy goals. What does goal-setting theory tell us?

First, working toward a goal is a major source of job motivation. Studies on goal
setting have demonstrated that specific and challenging goals are superior motivating
forces.26 Such goals produce a higher output than the generalized goal of “do your
best.” The specificity of the goal itself acts as an internal stimulus. For instance, when
a sales rep commits to making eight sales calls daily, this intention gives him a specific
goal to try to attain.

It’s not a contradiction that goal-setting theory says that motivation is maximized
by difficult goals, whereas achievement motivation (from three-needs theory) is stimu-
lated by moderately challenging goals.27 First, goal-setting theory deals with people
in general, whereas the conclusions on achievement motivation are based on people

Chapter 17  Motivation 595

who have a high nAch. Given that no more

LEADER making athan 10 to 20 percent of North Americans
DIFFERENCEare high achievers (a proportion that’s likely
lower in underdeveloped countries), difficult
goals are still recommended for the major-
ity of employees. Second, the conclusions of What if the group of people you needed to lead
goal-setting theory apply to those who accept
and are committed to the goals. Difficult goals Source: WENN Ltd/Alamy and motivate didn’t actually work for your com-
will lead to higher performance only if they pany? That’s been the challenge faced by Susan
are accepted. Wojcicki, CEO of Google-owned YouTube since
2014.28
Next, will employees try harder if they
have the opportunity to participate in the No stranger to the tech world before taking the
lead at YouTube, Wojcicki was actually the 16th

setting of goals? Not always. In some cases, employee hired at Google (in fact, the first few months of Google

participants who actively set goals elicit supe- operations were out of her garage). Her role at YouTube is unique
rior performance; in other cases, individuals
performed best when their manager assigned as she needs to motivate both employees and those that provide the

goals. However, participation is probably content on YouTube, known as “creators.” Wojcicki calls the creators
preferable to assigning goals when employees
might resist accepting difficult challenges.29 the “lifeblood of YouTube,” understanding that they are the talent of
the company. Many creators depend on making their living through
Finally, we know people will do better YouTube, generating income from the ads that run before their videos.
if they get feedback on how well they’re pro-
gressing toward their goals because feedback Before Wojcicki, the creators had a turbulent relationship with
helps identify discrepancies between what management, describing them as arrogant and closed off from the
creators. Wojcicki made the creators her priority, spending time dur-

they have done and what they want to do. But ing her first month on the job meeting with them to just listen and take

all feedback isn’t equally effective. Self-gener- notes. She made an effort to engage the creators by working to under-
ated feedback—where an employee monitors
his or her own progress—has been shown to stand their needs and goals. In response, she has implemented strate-
be a more powerful motivator than feedback
coming from someone else.30 gies that help motivate the creators to post their content on YouTube.
For example, the company now offers YouTube Spaces which are
Three other contingencies besides feed- free production and educational spaces located in six major cities.
back influence the goal-performance relation- Creators stay with YouTube because Wojnicki listens and has helped
ship: goal commitment, adequate self-efficacy, create opportunities for them to pursue their passions. What can you
and national culture. learn from this leader making a difference?

First, goal-setting theory assumes an
individual is committed to the goal. Commitment is most likely when goals are made
public, when the individual has an internal locus of control, and when the goals are
self-set rather than assigned.31
Next, self-efficacy refers to an individual’s belief that he or she is capable of self-efficacy
performing a task.32 The higher your self-efficacy, the more confidence you have in An individual’s belief that he or she is
your ability to succeed in a task. So, in difficult situations, we find that people with capable of performing a task

low self-efficacy are likely to reduce their effort or give up altogether, whereas those
with high self-efficacy will try harder to master the challenge.33 In addition, individuals
with high self-efficacy seem to respond to negative feedback with increased effort and
motivation, whereas those with low self-efficacy are likely to reduce their effort when
given negative feedback.34
Finally, the value of goal-setting theory depends on national culture. It’s well
adapted to North American countries because its main ideas align reasonably well
with those cultures. It assumes that subordinates will be reasonably independent (not
a high score on power distance), that people will seek challenging goals (low in uncer-
tainty avoidance), and that performance is considered important by both managers
and subordinates (high in assertiveness). Don’t expect goal setting to lead to higher
employee performance in countries where the cultural characteristics aren’t like this.
Exhibit 17-5 summarizes the relationships among goals, motivation, and perfor-
mance. Our overall conclusion is that the intention to work toward hard and spe-
cific goals is a powerful motivating force. Under the proper conditions, it can lead to
higher performance. However, no evidence indicates that such goals are associated
with increased job satisfaction.35

596 Part 5 Leading • Goals Are Public
• Individual Has Internal
Exhibit 17-5
Locus of Control
Goal-Setting Theory • Self-Set Goals

Self-E cacy

Goals Committed Motivation Self-Generated Higher Performance
• Specific to Achieving (intention to work Feedback on Plus
• Di cult
Accepted toward goal) Progress Goal Achievement

Participation National
in Setting Culture

reinforcement theory Reinforcement Theory
The theory that behavior is a function of
its consequences Reinforcement theory says that behavior is a function of its consequences. Those
reinforcers consequences that immediately follow a behavior and increase the probability that the
Consequences immediately following a behavior will be repeated are called reinforcers.
behavior, which increase the probability
that the behavior will be repeated Reinforcement theory ignores factors such as goals, expectations, and needs.
Instead, it focuses solely on what happens to a person when he or she does something.
FYI For instance, Walmart improved its bonus program for hourly employees. Employees
who provide outstanding customer service get a cash bonus. And all Walmart hourly
• 52 percent of employees full- and part-time store employees are eligible for annual “My$hare” bonuses, which
say their manager is not are allocated on store performance and distributed quarterly so that workers are
interested in their professional rewarded more frequently.36 The company’s intent: keep the workforce motivated to
development.39 meet goals by rewarding them when they do, thus reinforcing the behaviors.

In Chapter 15 we showed how managers use reinforcers to shape behavior, but
the concept is also widely believed to explain motivation. According to B. F. Skinner,
people will most likely engage in desired behaviors if they are rewarded for doing so.
These rewards are most effective if they immediately follow a desired behavior; and
behavior that isn’t rewarded, or is punished, is less likely to be repeated.37

Using reinforcement theory, managers can influence employees’ behavior by using
positive reinforcers for actions that help the organization achieve its goals. And man-
agers should ignore, not punish, undesirable behavior. Although punishment elimi-
nates undesired behavior faster than nonreinforcement, its effect is often temporary
and may have unpleasant side effects, including dysfunctional behavior such as work-
place conflicts, absenteeism, and turnover. Although reinforcement is an important
influence on work behavior, it isn’t the only explanation for differences in employee
motivation.38

Designing Motivating Jobs

Jobs designed with a shorter work day in mind are particularly motivating for
employees of some Swedish businesses. Employees of the tech firm Brath aren’t
expected to work more than six hours a day because, says CEO Maria Brath, “we
are very creative—we couldn’t keep it up for eight hours.” Filimundus, a Swedish
app design firm, also has a six-hour work day because “it is a strong motivational
factor to be able to go home two hours earlier,” notes the CEO. “You still want to
do a good job and be productive during six hours, so I think you focus more and are
more efficient.”40

Because managers want to motivate individuals on the job, we need to look at ways
to design motivating jobs. If you look closely at what an organization is and how it
works, you’ll find that it’s composed of thousands of tasks. These tasks are, in turn,

Chapter 17  Motivation 597

aggregated into jobs. We use the term job design to refer to the way tasks are combined job design
to form complete jobs. The jobs people perform in an organization should not evolve The way tasks are combined to form
by chance. Managers should design jobs deliberately and thoughtfully to reflect the complete jobs
demands of the changing environment; the organization’s technology; and employees’
skills, abilities, and preferences.41 When jobs are designed like that, employees are moti-
vated to work hard. Let’s look at some ways that managers can design motivating jobs.42

JOB ENLARGEMENT  As we saw in the Management History Module, job design job scope
historically has been to make jobs smaller and more specialized. It’s difficult to motivate The number of different tasks required
employees when jobs are like this. An early effort at overcoming the drawbacks of job in a job and the frequency with which
specialization involved horizontally expanding a job through increasing job scope—the those tasks are repeated
number of different tasks required in a job and the frequency with which these tasks are
repeated. For instance, a dental hygienist’s job could be enlarged so that in addition to job enlargement
cleaning teeth, he or she is pulling patients’ files, refiling them when finished, and sanitiz- The horizontal expansion of a job by
ing and storing instruments. This type of job design option is called job enlargement. increasing job scope

Most job enlargement efforts that focus solely on increasing the number of tasks
don’t seem to work. As one employee who experienced such a job redesign said,
“Before, I had one lousy job. Now, thanks to job enlargement, I have three lousy jobs!”
However, research has shown that knowledge enlargement activities (expanding the
scope of knowledge used in a job) lead to more job satisfaction, enhanced customer
service, and fewer errors.43

JOB ENRICHMENT  Another approach to job design is the vertical expansion of a job enrichment
job by adding planning and evaluating responsibilities—job enrichment. Job enrich- The vertical expansion of a job by adding
ment increases job depth, which is the degree of control employees have over their planning and evaluating responsibilities
work. In other words, employees are empowered to assume some of the tasks typically
done by their managers. Thus, an enriched job allows workers to do an entire activity job depth
with increased freedom, independence, and responsibility. In addition, workers get The degree of control employees have
feedback so they can assess and correct their own performance. For instance, if our over their work
dental hygienist had an enriched job, he or she could, in addition to cleaning teeth,
schedule appointments (planning) and follow up with clients (evaluating). Although
job enrichment may improve the quality of work, employee
motivation, and satisfaction, research evidence has been in-
conclusive as to its usefulness.44

JOB CHARACTERISTICS MODEL  Even though many Meaningful work that helps people recover
organizations implemented job enlargement and job enrich- from physical problems caused by illness,
ment programs and experienced mixed results, neither ap- injury, or aging gives physiotherapist Diane
proach provided an effective framework for managers to Leng great motivation and job satisfaction.
design motivating jobs. But the job characteristics model Shown here working with a young patient,
(JCM) does.45 It identifies five core job dimensions, their inter- Leng has a job that scores high in skill and task
relationships, and their impact on employee productivity, mo- variety plus task significance. She applies her
tivation, and satisfaction. These five core job dimensions are: knowledge and skills in identifying patients’
needs, organizing and conducting therapy
1. Skill variety, the degree to which a job requires a sessions, writing reports, consulting with
variety of activities so that an employee can use a doctors and nurses, and educating patients
number of different skills and talents. about exercise and movement.
Source: Jonathan Hordle / AP Images
2. Task identity, the degree to which a job requires completion of a whole and
identifiable piece of work.

3. Task significance, the degree to which a job has a substantial impact on the
lives or work of other people.

4. A utonomy, the degree to which a job provides substantial freedom,
independence, and discretion to the individual in scheduling the work and
determining the procedures to be used in carrying it out.

5. F eedback, the degree to which doing work activities required by a job results in
an individual obtaining direct and clear information about the effectiveness of
his or her performance.

598 Part 5 Leading Core Job Critical Personal and
Dimensions Psychological States Work Outcomes
Exhibit 17-6 Skill Variety Experienced High Internal
Task Identity meaningfulness Work Motivation
Job Characteristics Model Task Significance of the work High-Quality
Work Performance
Source: “Job Characteristics Model,” from Autonomy Experienced responsibility
Work Redesign, by J. R. Hackman & G. R. for outcomes of the work High Satisfaction
Oldham. Copyright © 1980 by Addison- Feedback Knowledge of the actual with the Work
Wesley (a division of Pearson). Reprinted results of the work activities Low Absenteeism
with permission. and Turnover

Strength of Employee Growth Need

job characteristics model (JCM) The JCM is shown in Exhibit 17-6. Notice how the first three dimensions—skill variety,
A framework for analyzing and designing task identity, and task significance—combine to create meaningful work. In other words,
jobs that identifies five primary core job if these three characteristics exist in a job, we can predict that the person will view his or
dimensions, their interrelationships, and her job as being important, valuable, and worthwhile. Notice, too, that jobs that possess
their impact on outcomes autonomy give the jobholder a feeling of personal responsibility for the results and that if
a job provides feedback, the employee will know how effectively he or she is performing.
skill variety
The degree to which a job requires a The JCM suggests that employees are likely to be motivated when they learn
variety of activities so that an employee (knowledge of results through feedback) that they personally (experienced responsibility
can use a number of different skills and through autonomy of work) performed well on tasks that they care about (experienced
talents meaningfulness through skill variety, task identity, or task significance).46 The more a
job is designed around these three elements, the greater the employee’s motivation, per-
task identity formance, and satisfaction and the lower his or her absenteeism and likelihood of resign-
The degree to which a job requires ing. As the model shows, the links between the job dimensions and the outcomes are
completion of a whole and identifiable moderated by the strength of the individual’s growth need (the person’s desire for self-
piece of work esteem and self-actualization). Individuals with a high-growth need are more likely than
low-growth need individuals to experience the critical psychological states and respond
task significance positively when their jobs include the core dimensions. This distinction may explain the
The degree to which a job has a mixed results with job enrichment: Individuals with low-growth need aren’t likely to
substantial impact on the lives or work of achieve high performance or satisfaction by having their jobs enriched.
other people
The JCM provides specific guidance to managers for job design. These suggestions
autonomy specify the types of changes most likely to lead to improvement in the five core job dimen-
The degree to which a job provides sions. You’ll notice that two suggestions incorporate job enlargement and job enrichment,
substantial freedom, independence, and although the other suggestions involve more than vertical and horizontal expansion of jobs.
discretion to the individual in scheduling
work and determining the procedures to 1. Combine tasks. Put fragmented tasks back together to form a new, larger work
be used in carrying it out module (job enlargement) to increase skill variety and task identity.

feedback 2. Create natural work units. Design tasks that form an identifiable and meaningful
The degree to which carrying out work whole to increase employee “ownership” of the work. Encourage employees to
activities required by a job results in the view their work as meaningful and important rather than as irrelevant and boring.
individual’s obtaining direct and clear
information about his or her performance 3. Establish client (external or internal) relationships. Whenever possible, establish
effectiveness direct relationships between workers and their clients to increase skill variety,
autonomy, and feedback.

4. Expand jobs vertically. Vertical expansion gives employees responsibilities and
controls that were formerly reserved for managers, which can increase employee
autonomy.

5. Open feedback channels. Direct feedback lets employees know how well they’re
performing their jobs and whether their performance is improving or not.
The research into the JCM has provided a rich knowledge base for understand-

ing how job design influences employee motivation; however, the research does not
directly specify motivating jobs. What are some of the jobs people consider to be more
or less meaningful?

Chapter 17  Motivation 599

A survey of workers employed in more than 450 jobs provides some insights.
Approximately 374,000 workers were asked the question: “Does your job make the
world a better place?”47 More than 95 percent of clergy members, surgeons, and educa-
tion administrators (such as principals) feel that they make the world a better place. In
contrast, fewer than 25 percent of gaming supervisors and parking lot attendants feel
that they make the world a better place.

Research into the JCM continues. For instance, one recent study looked at using
job redesign efforts to change job characteristics and improve employee well-being.48
Another study examined psychological ownership—that is, a personal feeling of
“mine-ness” or “our-ness”—and its role in the JCM.49

REDESIGNING JOB DESIGN APPROACHES50  Although the JCM has proven to relational perspective of work design
be useful, it may not be totally appropriate for today’s jobs that are more service and An approach to job design that focuses
knowledge oriented. The nature of these jobs has also changed the tasks that employ- on how people’s tasks and jobs are
ees do in those jobs. Two emerging viewpoints on job design are causing a rethinking increasingly based on social relationships
of the JCM and other standard approaches. Let’s take a look at each perspective.
proactive perspective of work design
The first perspective, the relational perspective of work design, focuses on An approach to job design in which
how people’s tasks and jobs are increasingly based on social relationships. In jobs employees take the initiative to change
today, employees have more interactions and interdependence with coworkers and how their work is performed
others both inside and outside the organization. In doing their job, employees rely
more and more on those around them for information, advice, and assistance. So what high-involvement work practices
does this mean for designing motivating jobs? It means that managers need to look Work practices designed to elicit greater
at important components of those employee relationships such as access to and level input or involvement from workers
of social support in an organization, types of interactions outside an organization,
amount of task interdependence, and interpersonal feedback.

Let’s look at an example of the relational perspective of work design. Have you
ever called a software company’s help line? Isn’t your expectation that the product
expert will provide straightforward answers and step-by-step instructions for address-
ing the problem? Of course, we all do! Microsoft understands customers’ expectations.
Managers help improve the customer service experience by connecting software devel-
opers with customers. In this example, the manager’s goal is to have developers write
software that meets technical specifications and is user friendly.

The second perspective, the proactive perspective of work design, says that
employees are taking the initiative to change how their work is performed. They’re
much more involved in decisions and actions that affect their work. Important job
design factors according to this perspective include autonomy (which is part of the
JCM), amount of ambiguity and accountability, job complexity, level of stressors, and
social or relationship context. Each of these has been shown to influence employee
proactive behavior. For instance, researchers observed cleaners at a hospital took the
initiative to craft their own jobs. According to one of the researchers, “the cleaners had
tons of rooms they had to clean in a very short period of time so they had very little dis-
cretion over the number of tasks they had to get done. . . . [T]o make it more meaning-
ful for themselves, they would do all types of little things to help the patients and their
patients’ families.”51 One stream of research that’s relevant to proactive work design
is high-involvement work practices, which are designed to elicit greater input or
involvement from workers.52 The level of employee proactivity is believed to increase as
employees become more involved in decisions that affect their work. Another term for
this approach, which we discussed earlier in Chapter 10, is employee empowerment.
(You’ll find more information on employee empowerment in Chapter 16.)

Equity Theory

Do you ever wonder what kind of grade the person sitting next to you in class makes on
a test or on a major class assignment? Most of us do! Being human, we tend to compare
ourselves with others. If someone offered you $60,000 a year on your first job after gradu-
ating from college, you’d probably jump at the offer and report to work enthusiastic, ready
to tackle whatever needed to be done, and certainly be satisfied with your pay. How would
you react, though, if you found out a month into the job that a coworker—another recent