For leaders, pushing beyond the comfort zone and facing the internal "wall of fear" is an act of:

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

The Leadership Experience

SEVENTH EDITION

RICHARD L. DAFT Owen Graduate School of Management Vanderbilt University

With the assistance of

Patricia G. Lane

The Leadership Experience Seventh Edition Richard L. Daft With the assistance of Patricia G. Lane

Vice President, General Manager, Social Science & Qualitative Business: Erin Joyner

Product Director: Jason Fremder

Product Manager: Mike Roche

Content Developer: Jamie Mack

Product Assistant: Allie Janneck

Marketing Director: Kristen Hurd

Marketing Manager: Emily Horowitz

Marketing Coordinator: Casey Binder

Art and Cover Direction, Production Management, and Composition: Cenveo Publisher Services

Intellectual Property

Analyst: Diane Garrity

Project Manager: Sarah Shainwald

Manufacturing Planner: Ron Montgomery

Cover Image(s): Moment/Getty Images; blackzheep/Shutterstock.com

Interior design credits: Design Pics/The Irish Image Collection/Getty Images; Steve Weinrebe/Photographer’s Choice RF/Getty Images; Bastar/Vetta/Getty Images; Vinimay Kaul/EyeEm/Getty Images; Matic Stojs/ ShutterStock.com

ª 2018, 2015 Cengage Learning¤

ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner.

For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706

For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions

Further permissions questions can be emailed to permissionrequest@cengage.com

Library of Congress Control Number: 2016940679

ISBN-13: 978-1-337-10227-8

Cengage Learning 20 Channel Center Street Boston, MA 02210 USA

Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com.

Cengage Learning products are represented in Canada by Nelson Education, Ltd.

To learn more about Cengage Learning Solutions, visit www.cengage.com

Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com

Printed in Canada Print Number: 01 Print Year: 2016

To the spiritual leaders who shaped my growth and development as a leader and as a human being.

BRIEF CONTENTS

PART 1: INTRODUCTION TO LEADERSHIP 1 1. What Does It Mean to Be a Leader? 2

PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33 2. Traits, Behaviors, and Relationships 34

3. Contingency Approaches to Leadership 64

PART 3: THE PERSONAL SIDE OF LEADERSHIP 97 4. The Leader as an Individual 98

5. Leadership Mind and Emotion 134

6. Courage and Moral Leadership 166

7. Followership 196

PART 4: THE LEADER AS A RELATIONSHIP BUILDER 225 8. Motivation and Empowerment 226

9. Leadership Communication 260

10. Leading Teams 292

11. Developing Leadership Diversity 326

12. Leadership Power and Influence 360

PART 5: THE LEADER AS SOCIAL ARCHITECT 393 13. Creating Vision and Strategic Direction 394

14. Shaping Culture and Values 428

15. Leading Change 462

Name Index 494

Index of Organizations 498

Subject Index 502

iv

CONTENTS

PART 1: INTRODUCTION TO LEADERSHIP 1

Chapter 1: What Does It Mean to Be a Leader? 2 1.1 Why We Need Leadership 4

1.1a Defining Leadership 5

1.1b Everyday Leadership 6

Leader’s Bookshelf 7

1.2 The New Reality for Leaders 8 1.2a From Stabilizer to Change Manager 9

1.2b From Controller to Facilitator 9

1.2c From Competitor to Collaborator 10

Leader’s Self-Insight 1.1 11 1.2d From Diversity Avoider to Diversity Promoter 11

Consider This! 12 1.2e From Hero to Humble 12

In the Lead 13

1.3 How Leadership Differs from Management 14 1.3a Providing Direction 14

1.3b Aligning Followers 15

1.3c Building Relationships 16

1.3d Developing Personal Leadership Qualities 16

1.3e Creating Outcomes 16

Leader’s Self-Insight 1.2 17

1.4 Evolving Theories of Leadership 17 1.4a Historical Overview of Major Approaches 18

1.4b A Model of Leadership Evolution 19

1.5 Leadership Can Be Learned 21 1.5a Leader Fatal Flaws 21

Leader’s Self-Insight 1.3 22 1.5b Leader Good Behaviors 23

In the Lead 23

1.6 Mastering the Art and Science of Leadership 24

1.7 Organization of This Book 24

Leadership Essentials 26

Discussion Questions 27

Leadership at Work 27

Leadership Right–Wrong 27

Leadership Development: Cases for analysis 29

Sales Engineering Division 29

The Marshall Plan 29

References 30

PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33

Chapter 2: Traits, Behaviors, and Relationships 34 2.1 The Trait Approach 36

2.1a Optimism and Self-Confidence 37

Leader’s Bookshelf 38 2.1b Honesty and Integrity 38

Leader’s Self-Insight 2.1 40

2.1c Drive 40

In the Lead 40

2.2 Know Your Strengths 41 2.2a What Are Strengths? 41

2.2b Matching Strengths with Roles 42

2.3 Behavior Approaches 43

v

2.3a Autocratic versus Democratic Behaviors 43

Consider This! 44

In the Lead 45 2.3b Ohio State Studies 46

Leader’s Self-Insight 2.2 47

In the Lead 47 2.3c University of Michigan Studies 48

2.3d The Leadership Grid 49

In the Lead 50 2.3e Theories of a ‘‘High-High’’ Leader 50

2.4 Individualized Leadership 52 2.4a Vertical Dyad Linkage Model 53

2.4b Leader–Member Exchange 54

2.4c Partnership Building 54

Leader’s Self-Insight 2.3 55

2.5 Entrepreneurial Traits and Behaviors 55

Leadership Essentials 56

Discussion Questions 57

Leadership at Work 58

Your Ideal Leader Traits 58

Leadership Development: Cases for Analysis 58

Consolidated Products 58

Transition to Leadership 60

References 61

Chapter 3: Contingency Approaches to Leadership 64 3.1 The Contingency Approach 66

Leader’s Bookshelf 67

Leader’s Self-Insight 3.1 69

3.2 Hersey and Blanchard’s Situational Theory 69 3.2a Leader Style 70

3.2b Follower Readiness 71

In the Lead 72

Leader’s Self-Insight 3.2 73

3.3 Fiedler’s Contingency Model 73 3.3a Leadership Style 73

3.3b Situation 74

3.3c Contingency Theory 75

In the Lead 75

3.4 Path–Goal Theory 77 3.4a Leader Behavior 77

In the Lead 79 3.4b Situational Contingencies 79

Consider This! 80 3.4c Use of Rewards 80

3.5 The Vroom–Jago Contingency Model 81 3.5a Leader Participation Styles 82

3.5b Diagnostic Questions 83

3.5c Selecting a Decision Style 83

In the Lead 87

3.6 Substitutes for Leadership 88

In the Lead 89

Leader’s Self-Insight 3.3 90

Leadership Essentials 91

Discussion Questions 92

Leadership at Work 92

Task versus Relationship Role Play 92

Leadership Development: Cases for Analysis 93

Alvis Corporation 93

An Impossible Dream? 94

References 95

PART 3: THE PERSONAL SIDE OF LEADERSHIP 97

Chapter 4: The Leader as an Individual 98 4.1 The Secret Ingredient for Leadership Success 100

4.1a The Importance of Self-Awareness 100

4.1b Leader Blind Spots 101

4.2 Personality and Leadership 102

In the Lead 102 4.2a A Model of Personality 102

Leader’s Self-Insight 4.1 103

Leader’s Bookshelf 106

4.2b Personality Traits and Leader Behavior 106

In the Lead 107

Leader’s Self-Insight 4.2 108

4.3 Values and Attitudes 109 4.3a Instrumental and End Values 109

Leader’s Self-Insight 4.3 110

In the Lead 111 4.3b How Attitudes Affect Leadership 112

vi CONTENTS

Consider This! 112

4.4 Social Perception and Attributions 114 4.4a Perceptual Distortions 114

4.4b Attributions 115

In the Lead 116

4.5 Cognitive Differences 116 4.5a Patterns of Thinking and Brain Dominance 117

Leader’s Self-Insight 4.4 118

In the Lead 119 4.5b Problem-Solving Styles: Jungian Types 120

4.6 Working with Different Personality Types 122

Leader’s Self-Insight 4.5 123

Leadership Essentials 126

Discussion Questions 127

Leadership at Work 127

Past and Future 127

Leadership Development: Cases for Analysis 128

A Nice Manager 128

Environmental Designs International 130

References 131

Chapter 5: Leadership Mind and Emotion 134 5.1 Leading with Head and Heart 136

5.2 Mental Models 136 5.2a Assumptions 138

5.2b Changing or Expanding Mental Models 138

In the Lead 139

5.3 Developing a Leader’s Mind 140 5.3a Independent Thinking 140

Leader’s Bookshelf 141 5.3b Open-Mindedness 142

Leader’s Self-Insight 5.1 143 5.3c Systems Thinking 144

5.3d Personal Mastery 145

5.4 Emotional Intelligence 146 5.4a What Are Emotions? 146

5.4b Why Are Emotions Important? 147

5.4c The Components of Emotional Intelligence 149

In the Lead 152

Leader’s Self-Insight 5.2 153

5.5 Leading with Love versus Leading with Fear 153

Leader’s Self-Insight 5.3 154 5.5a Fear in Organizations 155

In the Lead 155 5.5b Bringing Love to Work 156

Consider This! 157 5.5c Why Followers Respond to Love 158

Leadership Essentials 158

Discussion Questions 159

Leadership at Work 160

Mentors 160

Leadership Development: Cases for Analysis 160

The New Boss 160

The USS Florida 162

References 163

Chapter 6: Courage and Moral Leadership 166 6.1 Moral Leadership Today 168

6.1a The Ethical Climate in Business 168

Leader’s Bookshelf 169 6.1b Leaders Set the Ethical Tone 169

In the Lead 170

Leader’s Self-Insight 6.1 172

6.2 Acting Like a Moral Leader 173

6.3 Becoming a Moral Leader 174

6.4 Servant Leadership 176 6.4a Authoritarian Management 176

6.4b Participative Management 177

6.4c Stewardship 177

6.4d The Servant Leader 178

In the Lead 179

Leader’s Self-Insight 6.2 180

6.5 Leading with Courage 180 6.5a What Is Courage? 181

Consider This! 181

In the Lead 182

Leader’s Self-Insight 6.3 184 6.5b How Does Courage Apply to Moral Leadership? 184

6.5c Finding Personal Courage 185

In the Lead 186

Leadership Essentials 187

CONTENTS vii

Discussion Questions 188

Leadership at Work 189

Scary Person 189

Leadership Development: Cases for Analysis 189

‘‘What Should I Say?’’ 189

The Boy, the Girl, the Ferryboat Captain, and the Hermits 191

References 192

Chapter 7: Followership 196 7.1 The Art of Followership 198

7.1a Learn to Manage Up as Well as Down 199

7.1b Managing Up Presents Unique Challenges 199

In the Lead 199

7.2 What Your Leader Wants from You 200

7.3 Styles of Followership 201

Leader’s Self-Insight 7.1 203

In the Lead 204

Consider This! 205

7.4 Strategies for Managing Up 205 7.4a Understand the Leader 205

7.4b Tactics for Managing Up 206

Leader’s Self-Insight 7.2 207

Leader’s Bookshelf 209

In the Lead 209

7.5 The Power and Courage to Manage Up 210 7.5a Sources of Power for Managing Up 210

7.5b Necessary Courage to Manage Up 211

In the Lead 213

7.6 What Followers Want from Leaders 213 7.6a Clarity of Direction 214

7.6b Opportunities for Growth 214

7.6c Frequent, Specific, and Immediate Feedback 216

Leader’s Self-Insight 7.3 217 7.6d Protection from Organizational

Intrusions 217

Leadership Essentials 218

Discussion Questions 218

Leadership at Work 219

Follower Role Play 219

Leadership Development: Cases for Analysis 220

Waiting for Clearance 220

Jake’s Pet Land 221

References 222

PART 4: THE LEADER AS A RELATIONSHIP BUILDER 225

Chapter 8: Motivation and Empowerment 226 8.1 Leadership and Motivation 228

8.1a Intrinsic and Extrinsic Rewards 229

8.1b Positive and Negative Motives 230

Leader’s Bookshelf 232

8.2 Needs-Based Theories of Motivation 232 8.2a Hierarchy of Needs Theory 233

8.2b Two-Factor Theory 234

In the Lead 235 8.2c Acquired Needs Theory 236

Leader’s Self-Insight 8.1 237

8.3 Other Motivation Theories 237

Consider This! 238 8.3a Reinforcement Perspective on Motivation 238

8.3b Expectancy Theory 240

8.3c Equity Theory 241

Leader’s Self-Insight 8.2 242

8.4 Empowering People to Meet Higher Needs 243

8.4a The Psychological Model of Empowerment 244

8.4b Job Design for Empowerment 244

8.4c Empowerment Applications 246

In the Lead 246

Leader’s Self-Insight 8.3 248

8.5 Giving Meaning to Work through Engagement 248

In the Lead 249

8.6 New Ideas for Motivation 250 8.6a The Making Progress Principle 250

8.6b Building a Thriving Workforce 250

Leadership Essentials 251

Discussion Questions 252

Leadership at Work 252

Should, Need, Like, Love 252

Leadership Development: Cases for Analysis 254

Commissions for Charlotte 254

viii CONTENTS

Sun Spots 255

References 256

Chapter 9: Leadership Communication 260 9.1 How Leaders Communicate 262

9.1a Management Communication 263

Leader’s Self-Insight 9.1 264 9.1b The Leader as Communication

Champion 264

Consider This! 265

9.2 Leading Strategic Conversations 266

In the Lead 266 9.2a Creating an Open Communication

Climate 267

9.2b Asking Questions 267

9.2c Listening 268

Leader’s Self-Insight 9.2 270 9.2d Dialogue 270

9.2e Communicating with Candor 272

Leader’s Self-Insight 9.3 273

In the Lead 273 9.2f The Power of Stories 274

Leader’s Bookshelf 275

9.3 Communicating to Persuade and Influence 275

9.4 Selecting the Correct Communication Channel 276 9.4a The Continuum of Channel Richness 277

In the Lead 278 9.4b Effectively Using Electronic Communication

Channels 279

9.5 Nonverbal Communication 281

9.6 Current Communication Challenges 281 9.6a Leadership via Social Media 281

9.6b Being Crisis-Ready 282

In the Lead 283

Leadership Essentials 283

Discussion Questions 284

Leadership at Work 285

Listen Like a Professional 285

Leadership Development: Cases for Analysis 286

The Superintendent’s Directive 286

Hunter-Worth 287

References 288

Chapter 10: Leading Teams 292 10.1 The Value of Teams 294

10.1a What Is a Team? 294

Consider This! 295 10.1b Types of Teams 295

In the Lead 297

10.2 The Dilemma for Team Members 298

Leader’s Self-Insight 10.1 299

10.3 Leading a Team to High Performance 300

Leader’s Bookshelf 301

10.4 Team Processes 301 10.4a How Teams Develop 302

10.4b Team Cohesiveness 303

In the Lead 304 10.4c Team Norms 305

10.5 What Team Members Must Contribute 306 10.5a Essential Team Competencies 306

Leader’s Self-Insight 10.2 307 10.5b Team Member Roles 307

10.6 Leading a Virtual Team 308

In the Lead 309 10.6a Uses of Virtual Teams 309

10.6b Challenges of Virtual Teams 310

10.7 Handling Team Conflict 311 10.7a Types of Conflict 312

10.7b Balancing Conflict and Cooperation 312

10.7c Causes of Conflict 313

10.7d Styles to Handle Conflict 313

Leader’s Self-Insight 10.3 315 10.7e Negotiation 316

Leadership Essentials 317

Discussion Questions 317

Leadership at Work 318

Team Feedback 318

Leadership Development: Cases for Analysis 319

Decision Time 319

Devereaux-Dering Group 320

References 322

Chapter 11: Developing Leadership Diversity 326 11.1 Leading People Who Aren’t Like You 328

Leader’s Self-Insight 11.1 329

CONTENTS ix

11.2 Diversity Today 329 11.2a Definition of Diversity 329

11.2b Changing Attitudes toward Diversity 330

In the Lead 331 11.2c The Value of Organizational Diversity 331

11.3 Challenges Minorities Face 332 11.3a Prejudice, Stereotypes, and

Discrimination 332

Leader’s Self-Insight 11.2 333 11.3b The Glass Ceiling 334

Leader’s Bookshelf 336

In the Lead 337

11.4 Ways Women Lead 337

Consider This! 338 11.4a Women as Leaders 339

11.4b Is Leader Style Gender-Driven? 340

In the Lead 340

11.5 Global Diversity 341 11.5a The Sociocultural Environment 341

Leader’s Self-Insight 11.3 342 11.5b Social Value Systems 343

11.5c Developing Cultural Intelligence 344

11.5d Leadership Implications 345

11.6 Becoming an Inclusive Leader 346

In the Lead 347

11.7 Ways to Encourage the Advancement of Women and Minorities 349 11.7a Employee Affinity Groups 349

11.7b Minority Sponsorship 350

Leadership Essentials 351

Discussion Questions 352

Leadership at Work 352

Personal Diversity 352

Leadership Development: Cases for Analysis 353

True to Myself 353

The Trouble with Bangles 355

References 356

Chapter 12: Leadership Power and Influence 360 12.1 Four Kinds of Influential Leadership 362

12.1a Transformational Leadership 362

12.1b Charismatic Leadership 363

Leader’s Self-Insight 12.1 364 12.1c Coalitional Leadership 365

In the Lead 366 12.1d Machiavellian-Style Leadership 368

Leader’s Bookshelf 369

Leader’s Self-Insight 12.2 370

In the Lead 371

12.2 Using Hard versus Soft Power 371 12.2a Specific Types of Power 372

In the Lead 374 12.2b Follower Responses to the Use of

Power 375

Consider This! 376

12.3 Increasing Power through Political Activity 376 12.3a Leader Frames of Reference 377

12.3b Political Tactics for Asserting Leader Influence 378

Leader’s Self-Insight 12.3 379

In the Lead 382

12.4 Don’t Take Power Personally 382

Leadership Essentials 384

Discussion Questions 385

Leadership at Work 386

Circle of Influence 386

Leadership Development: Cases for Analysis 387

The Suarez Effect 387

Waite Pharmaceuticals 388

References 390

PART 5: THE LEADER AS SOCIAL ARCHITECT 393

Chapter 13: Creating Vision and Strategic Direction 394 13.1 The Leader’s Job: Looking Forward 396

13.1a Stimulating Vision and Action 396

Consider This! 397 13.1b Strategic Leadership 398

In the Lead 399

x CONTENTS

13.2 Leadership Vision 400

Leader’s Self-Insight 13.1 402 13.2a What Vision Does 402

Leader’s Self-Insight 13.2 404 13.2b Common Themes of Vision 404

In the Lead 406 13.2c Leader Steps to Creating a Vision 406

13.3 Mission 407 13.3a What Mission Does 407

Leader’s Bookshelf 408 13.3b A Framework for Noble Purpose 410

In the Lead 412

13.4 The Leader as Strategist-in-Chief 413 13.4a How to Achieve the Vision 413

13.4b How to Execute 415

In the Lead 415

Leader’s Self-Insight 13.3 416

Leadership Essentials 419

Discussion Questions 420

Leadership at Work 420

Future Thinking 420

Leadership Development: Cases for Analysis 422

The New Museum 422

The Visionary Leader 423

References 425

Chapter 14: Shaping Culture and Values 428 14.1 Organizational Culture 430

14.1a What Is Culture? 430

Leader’s Bookshelf 431 14.1b Importance of Culture 432

In the Lead 433

Consider This! 434

14.2 Culture Strength, Responsiveness, and Performance 435 14.2a Responsive Cultures 435

Leader’s Self-Insight 14.1 436 14.2b The High-Performance Culture 437

In the Lead 439

14.3 Cultural Leadership 440 14.3a Ceremonies 441

14.3b Stories 441

14.3c Symbols 441

14.3d Specialized Language 442

14.3e Selection and Socialization 442

14.3f Daily Actions 443

14.4 The Competing Values Approach to Shaping Culture 443

Leader’s Self-Insight 14.2 445 14.4a Adaptability Culture 446

In the Lead 446 14.4b Achievement Culture 446

14.4c Involvement Culture 447

14.4d Consistency Culture 447

14.5 Ethical Values in Organizations 448

In the Lead 448

14.6 Values-Based Leadership 449 14.6a Personal Values 449

In the Lead 449 14.6b Spiritual Values 450

Leader’s Self-Insight 14.3 451

Leadership Essentials 453

Discussion Questions 454

Leadership at Work 454

Walk the Talk 454

Leadership Development: Cases for Analysis 456

Culture Clash 456

5 Star and Amtech 457

References 458

Chapter 15: Leading Change 462 15.1 Leadership Means Leading Change 464

15.1a Resistance Is Real 464

15.1b The Leader as Change Agent 465

Leader’s Self-Insight 15.1 466

In the Lead 466

15.2 A Framework for Change 467

15.3 Using Appreciative Inquiry 469 15.3a Applying Appreciative Inquiry on a Large

Scale 469

Leader’s Self-Insight 15.2 470

In the Lead 472 15.3b Applying Appreciative Inquiry Every Day 472

Leader’s Bookshelf 473

15.4 Leading Creativity for Change 473

CONTENTS xi

15.4a Instilling Creative Values 474

15.4b Leading Creative People 475

Leader’s Self-Insight 15.3 477

15.5 Implementing Change 481

Consider This! 481 15.5a Helping People Change 482

15.5b The Keys That Help People Change 483

In the Lead 484

Leadership Essentials 486

Discussion Questions 486

Leadership at Work 487

Organizational Change Role Play 487

Leadership Development: Cases for Analysis 488

‘‘From This Point On. . .’’ 488

Riverside Pediatric Associates 489

References 491

Name Index 494

Index of Organizations 498

Subject Index 502

xii CONTENTS

ABOUT THE AUTHOR

Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management and Principal Senior Lecturer in the Owen Graduate School of Management at Van- derbilt University. Professor Daft specializes in the study of leadership and organiza- tion theory. Dr. Daft is a Fellow of the Academy of Management and has served on the editorial boards of Academy of Management Journal, Administrative Science Quarterly, and Journal of Management Education. He also served as the associate dean at the Owen School, was the associate editor-in-chief of Organization Science, and served for three years as associate editor of Administrative Science Quarterly.

Professor Daft has authored or coauthored 14 books. His latest books include The Executive and the Elephant: A Leader’s Guide to Building Inner Excellence (Jossey-Bass, 2010) and Building Management Skills: An Action First Approach (with Dorothy Marcic, Cengage/Southwest, 2014). He is also the author of Organi- zation Theory and Design (Cengage/Southwest, 2016), Management (Cengage/ Southwest, 2018), and Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (with Robert Lengel, Berrett-Koehler, 2000). He has also authored dozens of scholarly articles, papers, and chapters. His work has been published in Organizational Dynamics, Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, Strategic Management Journal, Journal of Manageme