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Robert N. Lussier, Ph.D. Springfield College

Christopher F. Achua, D.B.A. University of Virginia’s College at Wise

S I X T H E D I T I O N

Leadership THEORY, APPLICATION,

& SKILL DEVELOPMENT

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Leadership: Theory, Application, & Skill Development, 6e Robert N. Lussier, Christopher F. Achua

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WCN: 02-200-203

DEDICATION

To my wife Marie and our six children:

Jesse, Justin, Danielle, Nicole, Brian, and Renee

— Robert N. Lussier

To my family, especially my wife (Pauline),

the children (Justin, Brooke, Jordan, Cullen, Gregory and Zora)

and my mother (Theresia Sirri).

— Christopher F. Achua

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v

Brief Contents Preface xiii

Acknowledgments xxv

About the Authors xxviii

PART ONE INDIVIDuALS AS LEADERS

1 Who Is a Leader and What Skills Do Leaders Need? 1

2 Leadership Traits and Ethics 31

3 Leadership Behavior and Motivation 68

4 Contingency Leadership Theories 108

5 Influencing: Power, Politics, Networking, and Negotiation 144

PART TWO TEAM LEADERSHIP

6 Communication, Coaching, and Conflict Skills 183

7 Leader–Member Exchange and Followership 230

8 Team Leadership and Self-Managed Teams 268

PART THREE ORgANIzATIONAL LEADERSHIP

9 Charismatic and Transfor mational Leadership 319

10 Leadership of Culture, Ethics, and Diversity 357

11 Strategic Leadership and Change Management 395

12 Crisis Leadership and the Learning Organization 428

Appendix: Leadership and Spirituality in the Workplace 464

Glossary 474

Index 481

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vi

Contents Preface xiii Acknowledgments xxv About the Authors xxviii

PART ONE INDIVIDuALS AS LEADERS

CHAPTER 1 Who Is a Leader and What Skills Do Leaders Need? 1 Leadership Described 2

Leadership Development 2 / Defining Leadership with Five Key Elements 5

Leadership Skills 8 Are Leaders Born or Made? 8 / Can Leadership Be Taught and Skills Developed? 9 / Managerial Leadership Skills 9

Leadership Managerial Roles 11 Interpersonal Roles 11 / Informational Roles 12 / Decisional Roles 12

Levels of Analysis of Leadership Theory 14 Individual Level of Analysis 14 / group Level of Analysis 14 / Organizational Level of Analysis 14 / Interrelationships among the Levels of Analysis 15

Leadership Theory Paradigms 16 The Trait Theory Paradigm 16 / The Behavioral Leadership Theory Paradigm 16 / The Contingency Leadership Theory Paradigm 17 / The Integrative Leadership Theory Paradigm 17 / From the Management to the Leadership Theory Paradigm 17

Objectives of the Book 18 Leadership Theory 19 / Application of Leadership Theory 20 / Leadership Skill Development 20 / Flexibility 20

Organization of the Book 20

Chapter Summary 21 Key Terms 22 / Review Questions 22 / Critical-Thinking Questions 22 CASE: From Steve Jobs to Tim Cook—Apple 23 VIDEO CASE: Leadership at P. F. Chang’s 24 Developing Your Leadership Skills 1-1 24 Developing Your Leadership Skills 1-2 26

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CONTENTS vii

CHAPTER 2 Leadership Traits and Ethics 31 Personality Traits and Leadership Trait universality 32

Personality and Traits 33 / Personality Profiles 34 / Leadership Trait universality 35

The Big Five Including Traits of Effective Leaders 36 Surgency 36 / Agreeableness 37 / Adjustment 37 / Conscientiousness 38 / Openness 38

The Personality Profile of Effective Leaders 41 Achievement Motivation Theory 41 / Leader Motive Profile Theory 43

Leadership Attitudes 45 Theory X and Theory Y 46 / The Pygmalion Effect 47 / Self-Concept 48 / How Attitudes Develop Leadership Styles 49

Ethical Leadership 50 Does Ethical Behavior Pay? 51 / Factors Influencing Ethical Behavior 52 / How People Justify unethical Behavior 54 / guides to Ethical Behavior 56

Chapter Summary 57 Key Terms 58 / Review Questions 58 / Critical-Thinking Questions 59 CASE: Blake Mycoskie and TOMS 59 VIDEO CASE: “P.F.” Chang’s Serves Its Workers Well 61 Developing Your Leadership Skills 2-1 61 Developing Your Leadership Skills 2-2 63 Developing Your Leadership Skills 2-3 63

CHAPTER 3 Leadership Behavior and Motivation 68 Leadership Behavior and Styles 69

Leadership Behavior 69 / Leadership Styles and the university of Iowa Research 70

university of Michigan and Ohio State university Studies 71 university of Michigan: Job-Centered and Employee-Centered Behavior 72 / Ohio State university: Initiating Structure and Consideration Behavior 74 / Differences, Contributions, and Applications of Leadership Models 75

The Leadership grid 75 Leadership grid Theory 76 / Leadership grid and High-High Leader Research 77 / Behavioral Theory Contributions and Applications 78

Leadership and Major Motivation Theories 79 Motivation and Leadership 79 / The Motivation Process 79 / An Overview of Three Major Classifications of Motivation Theories 80

Content Motivation Theories 80 Hierarchy of Needs Theory 80 / Two-Factor Theory 82 / Acquired Needs Theory 86 / Balancing Work–Life Needs 87

Process Motivation Theories 87 Equity Theory 87 / Expectancy Theory 88 / goal-Setting Theory 89 / using goal Setting to Motivate Employees 91

Reinforcement Theory 92 Types of Reinforcement 93 / Schedules of Reinforcement 94 / You get What You Reinforce 95 / Motivating with Reinforcement 96 / giving Praise 96

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viii CONTENTS

Putting the Motivation Theories Together within the Motivation Process 99

Chapter Summary 100 Key Terms 100 / Review Questions 101 / Critical-Thinking Questions 101 CASE: Facebook COO Sheryl Sandberg 102 VIDEO CASE: Motivation at Washburn guitars 103 Developing Your Leadership Skills 3-1 103 Behavior Model Skills Training 3-1 104 Behavior Model Video 3-1 104 Developing Your Leadership Skills 3-2 104

CHAPTER 4 Contingency Leadership Theories 108 Contingency Leadership Theories and Models 109

Leadership Theories versus Leadership Models 110 / Contingency Theory and Model Variables 110 / global Contingency Leadership 111

Contingency Leadership Theory and Model 112 Leadership Style and the LPC 113 / Situational Favorableness 114 / Determining the Appropriate Leadership Style 114 / Research, Criticism, and Applications 116

Leadership Continuum Theory and Model 117

Path–goal Leadership Theory and Model 119 Situational Factors 120 / Leadership Styles 121 / Research, Criticism, and Applications 122

Normative Leadership Theory and Models 123 Leadership Participation Styles 124 / Model Questions to Determine the Appropriate Leadership Style 124 / Selecting the Time-Driven or Development-Driven Model for the Situation 127 / Determining the Appropriate Leadership Style 127 / Research, Criticism, and Applications 127

Putting the Behavioral and Contingency Leadership Theories Together 128 Prescriptive and Descriptive Models 129

Leadership Substitutes Theory 131 Substitutes and Neutralizers 131 / Leadership Style 132 / Changing the Situation 132 / Research, Criticism, and Applications 132

Chapter Summary 133 Key Terms 134 / Review Questions 134 / Critical-Thinking Questions 134 CASE: Foxconn Technology group 135 VIDEO CASE: Leadership at McDonald’s 136 Developing Your Leadership Skills 4-1 139 Developing Your Leadership Skills 4-2 140

CHAPTER 5 Influencing: Power, Politics, Networking, and Negotiation 144 Power 145

Sources of Power 146 / Types of Power and Influencing Tactics, and Ways to Increase Your Power 146

Organizational Politics 153 The Nature of Organizational Politics 154 / Political Behavior 155 / guidelines for Developing Political Skills 156

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CONTENTS ix

Networking 159 Perform a Self-Assessment and Set goals 160 / Create Your One-Minute Self-Sell 161 / Develop Your Network 162 / Conduct Networking Interviews 162 / Maintain Your Network 164 / Social Networking at Work 164

Negotiation 165 Negotiating 166 / The Negotiation Process 166

Ethics and Influencing 171

Chapter Summary 172 Key Terms 173 / Review Questions 173 / Critical-Thinking Questions 173 CASE: Organizational Power and Politics 174 VIDEO CASE: Employee Networks at Whirlpool Corporation 175 Developing Your Leadership Skills 5-1 176 Developing Your Leadership Skills 5-2 177 Developing Your Leadership Skills 5-3 178 Developing Your Leadership Skills 5-4 179

PART TWO TEAM LEADERSHIP

CHAPTER 6 Communication, Coaching, and Conflict Skills 183 Communication 184

Communication and Leadership 185 / Sending Messages and giving Instructions 185 / Receiving Messages 188

Feedback 191 The Importance of Feedback 191 / Common Approaches to getting Feedback on Messages—and Why They Don’t Work 192 / How to get Feedback on Messages 192

Coaching 194 How to give Coaching Feedback 194 / What Is Criticism—and Why Doesn’t It Work? 197 / The Coaching Model for Employees Who Are Performing Below Standard 198 / Mentoring 200

Managing Conflict 200 The Psychological Contract 201 / Conflict Management Styles 201

Collaborating Conflict Management Style Models 205 Initiating Conflict Resolution 206 / Responding to Conflict Resolution 207 / Mediating Conflict Resolution 207

Chapter Summary 210 Key Terms 210 / Review Questions 211 / Critical-Thinking Questions 211 CASE: Reed Hastings—Netflix 211 VIDEO CASE: Communication at Navistar International 213 Developing Your Leadership Skills 6-1 214 Behavior Model Skills Training 6-1 215 Behavior Model Video 6-1 221 Developing Your Leadership Skills 6-2 222 Behavior Model Skills Training 6-2 222 Behavior Model Video 6-2 223 Developing Your Leadership Skills 6-3 223 Developing Your Leadership Skills 6-4 224 Behavior Model Video 6-3 225 Developing Your Leadership Skills 6-5 225 Behavior Model Video 6-4 226

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x CONTENTS

CHAPTER 7 Leader–Member Exchange and Followership 230 From Vertical Dyadic Linkage Theory to Leader–Member Exchange Theory 232

Vertical Dyadic Linkage Theory 232 / Leader–Member Exchange (LMX) Theory 234 / Factors That Influence LMX Relationships 235 / The Benefits of High-Quality LMX Relationships 237 / Criticisms of LMX Theory 238

Followership 239 Defining Followership 240 / Types of Followers 241 / Becoming an Effective Follower 242 / guidelines to Becoming an Effective Follower 244 / Factors That Can Enhance Follower Influence 246 / Dual Role of Being a Leader and a Follower 249

Delegation 249 Delegating 249 / Delegation Decisions 250 / Delegating with the use of a Model 252 / Evaluating Followers: guidelines for Success 254

Chapter Summary 255 Key Terms 256 / Review Questions 256 / Critical-Thinking Questions 257 CASE: W. L. gore & Associates 257 VIDEO CASE: Delegation at Boyne uSA Resorts 259 Developing Your Leadership Skills 7-1 260 Behavior Model Skills Training 260 The Delegation Model 260 Behavior Model Video 7.1 261 Developing Your Leadership Skills 7-2 261

CHAPTER 8 Team Leadership and Self-Managed Teams 268 The use of Teams in Organizations 270

Is It a group or a Team? 271 / Benefits and Limitations of Teamwork 272 / What Is an Effective Team? 275 / Characteristics of Highly Effective Teams 276 / Team Leadership 279 / Organizational Culture and Team Creativity 281

Types of Teams 283 Functional Team 283 / Cross-Functional Team 284 / Virtual Team 285 / Self-Managed Team (SMT) 285

Decision Making in Teams 286 Normative Leadership Model 286 / Team-Centered Decision-Making Model 287 / Advantages and Disadvantages of Team-Centered Decision Making 287

Conducting Effective Team Meetings 288 Planning Meetings 289 / Conducting Meetings 290 / Handling Problem Members 291

Self-Managed Teams 293 The Nature of Self-Managed Teams 294 / The Benefits of Self-Managed Teams 295 / Top Management and Self-Managed Team Success 297 / The Changing Role of Leadership in Self-Managed Teams 298 / The Challenges of Implementing Self-Managed Teams 299

Chapter Summary 300 Key Terms 301 / Review Questions 301 / Critical Thinking Questions 302 CASE: Frederick W. Smith—FedEx 302 VIDEO CASE: The NEADS Team: People and Dogs 304 Behavior Model Skills Training 8-1 304 Leadership Decision-Making Model 305 Behavior Model Video 8-1 and Video Exercise 307 Developing Your Leadership Skills 8-1 308 Developing Your Leadership Skills 8-2 310

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CONTENTS xi

PART THREE ORgANIzATIONAL LEADERSHIP

CHAPTER 9 Charismatic and Transfor mational Leadership 319 Charismatic Leadership 321

Weber’s Conceptualization of Charisma 321 / Locus of Charismatic Leadership 322 / The Effects of Charismatic Leaders on Followers 323 / How One Acquires Charismatic Qualities 324 / Charisma: A Double-Edged Sword 326

Transformational Leadership 328 The Effects of Transformational Leadership 328 / Transformational versus Transactional Leadership 329 / The Transformation Process 331

Charismatic-Transformational Leadership 333 Qualities of Effective Charismatic and Transformational Leadership 333 / Charismatic and Transformational Leadership: What’s the Difference? 339

Stewardship and Servant Leadership 342 Stewardship and Attributes of the Effective Steward Leader 343 / Servant Leadership and Attributes of the Effective Servant Leader 344

Chapter Summary 346 Key Terms 348 / Review Questions 348 / Critical-Thinking Questions 348 CASE: ursula Burns: Xerox’s Chairwoman and CEO 349 VIDEO CASE: Timbuk2: Former CEO Sets a Course 351 Developing Your Leadership Skills 9-1 351

CHAPTER 10 Leadership of Culture, Ethics, and Diversity 357 What Is Organizational Culture? 359

Culture Creation and Sustainability 359 / The Power of Culture 360 / Strong versus Weak Cultures 361 / The Leader’s Role in Influencing Culture 364 / Types of Culture 366 / National Culture Identities—Hofstede’s Value Dimensions 369

Organizational Ethics 371 Fostering an Ethical Work Environment 372 / Authentic Leadership 374

Diversity Leadership 375 The Changing Work Place 376 / Benefits of Embracing Diversity 376 / Creating a Pro-Diversity Organizational Culture 378 / The Effects of globalization on Diversity Leadership 382

Chapter Summary 383 Key Terms 384 / Review Questions 385 / Critical-Thinking Questions 385 CASE: Mary Barra—New CEO of general Motors 385 VIDEO CASE: Diversity at PepsiCo 387 Developing Your Leadership Skills 10-1 387 Developing Your Leadership Skills 10-2 388 Developing Your Leadership Skills 10-3 389

CHAPTER 11 Strategic Leadership and Change Management 395 Strategic Leadership 397

globalization and Environmental Sustainability 399 / Strategic Leadership and the Strategic Management Process 400

The Strategic Management Process 401 Crafting a Vision and Mission Statement 402 / Setting Organizational Objectives 404 / Strategy Formulation 405 / Strategy Execution 408 / Strategy Evaluation and Control 411

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xii CONTENTS

Leading Organizational Change 411 The Need for Organizational Change 412 / The Role of Top Leaders in Managing Change 412 / The Change Management Process 413 / Why People Resist Change 414 / Minimizing Resistance to Change 416

Chapter Summary 418 Key Terms 419 / Review Questions 419 / Critical Thinking Questions 420 CASE: Nike in the Era of CEO Mark Parker 420 VIDEO CASE: Original Penguin Spreads Its Wings 422 Developing Your Leadership Skills 11-1 422 Developing Your Leadership Skills 11-2 423 Developing Your Leadership Skills 11-3 423

CHAPTER 12 Crisis Leadership and the Learning Organization 428 Crisis Leadership 430

Crisis Communication in the Age of Social Media 432 / Formulating a Crisis Plan 433 / The Three-Stage Crisis Management Plan 433 / The Five-Step Crisis Risk Assessment Model 437 / Effective Crisis Communication 440 / guideliness to Effective Crisis Communication 441

The Learning Organization and Knowledge Management 443 Learning Organization Characterisitcs 444 / What Is Knowledge Management? 445 / Traditional Versus the Learning Organization 446 / The Learning Organizational Culture and Firm Performance 449 / The Role of Leaders in Creating a Learning Organization Culture 449

Chapter Summary 452 Key Terms 454 / Review Questions 454 / Critical Thinking Questions 454 CASE: Merck CEO–Ken Frazier. First African American Leading a Major Pharmaceutical Company 455 VIDEO CASE: Managing in Turbulent Times at Second City Theater 457 Developing Your Leadership Skills 12-1 457 Developing Your Leadership Skills 12-2 458

Appendix: Leadership and Spirituality in the Workplace 464 Glossary 474 Index 481

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xi i i

Preface Target Market This book is intended for leadership courses offered at the undergraduate and graduate levels in schools of busi- ness, public administration, health care, education, psychology, and sociology. No prior coursework in business or management is required. The textbook can also be used in management development courses that emphasize the leadership function, and can supplement management or organizational behavior courses that emphasize leader- ship, especially with an applications/skill development focus.

Goals and Overview of Competitive Advantages In his book Power Tools, John Nirenberg asks, “Why are so many well-intended students learning so much and yet able to apply so little in their personal and professional lives?” Is it surprising that students cannot apply what they read and cannot develop skills, when most textbooks continue to focus on theoretical concepts? Textbooks need to take the next step and develop students’ ability to apply what they read and to build skills using the concepts. I (Lussier) started writing management textbooks in 1988—prior to the call by the Association to Advance Collegiate Schools of Business (AACSB) for skill development and outcomes assessment—to help professors teach their stu- dents how to apply concepts and develop management skills. Pfeffer and Sutton concluded that the most important insight from their research is that knowledge that is actually implemented is much more likely to be acquired from learning by doing, than from learning by reading, listening, or thinking. We designed this book to give students the opportunity to learn by doing.

The overarching goal of this book is reflected in its subtitle: theory, application, skill development. We devel- oped the total package to teach leadership theory and concepts, to improve ability to apply the theory through critical thinking, and to develop leadership skills. Following are our related goals in writing this book:

• To be the only traditional leadership textbook to incorporate the three-pronged approach. We make a clear dis- tinction between coverage of theory concepts, their application, and the development of skills based on the con- cepts. The Test Bank includes questions under each of the three approaches.

• To make this the most “how-to” leadership book on the market. We offer behavior models with step-by-step guidelines for handling various leadership functions (such as how to set objectives, give praise and instructions, coach followers, resolve conflicts, and negotiate).

• To offer the best coverage of traditional leadership theories, by presenting the theories and research findings with- out getting bogged down in too much detail.

• To create a variety of high-quality application material, using the concepts to develop critical-thinking skills. • To create a variety of high-quality skill-development exercises, which build leadership skills that can be used in

students’ personal and professional life. • To offer behavior-modeling leadership skills training. • To make available a DVD, including 7 Behavior Model Videos and 12 Video Cases. • To suggest self-assessment materials that are well integrated and illustrate the important concepts discussed in the

text. Students begin by determining their personality profile in Chapter 2, and then assess how their personality affects their leadership potential in the remaining chapters.