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Experience

SIXTH EDITION

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

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

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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 194

PART 4: THE LEADER AS A RELATIONSHIP BUILDER 223 8. Motivation and Empowerment 224 9. Leadership Communication 258 10. Leading Teams 290 11. Developing Leadership Diversity 324 12. Leadership Power and Influence 358

PART 5: THE LEADER AS SOCIAL ARCHITECT 391 13. Creating Vision and Strategic Direction 392 14. Shaping Culture and Values 426 15. Leading Change 460

Name Index 491 Index of Organizations 495 Subject Index 499

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CONTENTS

PART 1: INTRODUCTION TO LEADERSHIP 1 Chapter 1: What Does It Mean to Be a Leader? 2 The Need for Leadership 4

Leadership Defined 5

Everyday Leadership 6

The New Reality for Leaders 7 From Stabilizer to Change Manager 7

From Controller to Facilitator 9

In the Lead 9 From Competitor to Collaborator 10 From Diversity Avoider to Diversity Promoter 10

Leader’s Bookshelf 11 From Hero to Humble 11

Leader’s Self-Insight 1.1 12

Consider This! 13

How Leadership Differs from Management 13 Providing Direction 14 Aligning Followers 15

Building Relationships 15 Developing Personal Leadership Qualities 15

Leader’s Self-Insight 1.2 16 Creating Outcomes 16

Evolving Theories of Leadership 17 Historical Overview of Major Approaches 17 A Model of Leadership Evolution 18

Leadership Can Be Learned 20 Leader Fatal Flaws 20 Leader Good Behaviors 21

Leader’s Self-Insight 1.3 22

In the Lead 22

Mastering the Art and Science of Leadership 23

Organization of This Book 25

Leadership Essentials 26

Discussion Questions 27

Leadership at Work 27

Leadership Right–Wrong 27

Leadership Development: Cases for Analysis 28

Sales Engineering Division 28

The Marshall Plan 29

References 30

PART 2: RESEARCH PERSPECTIVES ON LEADERSHIP 33 Chapter 2: Traits, Behaviors, and Relationships 34 The Trait Approach 36

Leader’s Bookshelf 37

Leader’s Self-Insight 2.1 39

In the Lead 40

Know Your Strengths 41 What Are Strengths? 41

In the Lead 42 Matching Strengths with Roles 42

Behavior Approaches 43

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Autocratic versus Democratic Behaviors 44

Consider This! 44 Ohio State Studies 46

Leader’s Self-Insight 2.2 47

In the Lead 47 University of Michigan Studies 48 The Leadership Grid 49

In the Lead 50 Theories of a “High-High” Leader 50

Individualized Leadership 52 Vertical Dyad Linkage Model 53

Leader’s Self-Insight 2.3 54 Leader–Member Exchange 54 Partnership Building 54

Entrepreneurial Traits and Behaviors 55

Leadership Essentials 56

Discussion Questions 57

Leadership at Work 57

Your Ideal Leader Traits 57

Leadership Development: Cases for Analysis 58

Consolidated Products 58

Transition to Leadership 59

References 61

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

Leader’s Bookshelf 67

Hersey and Blanchard’s Situational Theory 68

Leader’s Self-Insight 3.1 69 Leader Style 69

Follower Readiness Contingency 70

In the Lead 72

Fiedler’s Contingency Model 72

Leader’s Self-Insight 3.2 73 Leadership Style 73

Situation 74 Contingency Theory 74

In the Lead 75

Path–Goal Theory 76 Leader Behavior 77

In the Lead 78

Consider This! 79 Situational Contingencies 79 Use of Rewards 80

The Vroom–Jago Contingency Model 81 Leader Participation Styles 81 Diagnostic Questions 81

Selecting a Decision Style 83

In the Lead 86

Substitutes for Leadership 88

In the Lead 88

Leader’s Self-Insight 3.3 90

Leadership Essentials 91

Discussion Questions 91

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 The Secret Ingredient for Leadership Success 100

The Importance of Self-Awareness 100 Leader Blind Spots 101

Personality and Leadership 101

In the Lead 102 A Model of Personality 102

Leader’s Self-Insight 4.1 103

Leader’s Bookshelf 106

Personality Traits and Leader Behavior 106

In the Lead 107

Leader’s Self-Insight 4.2 108 Values and Attitudes 109

Instrumental and End Values 109

Leader’s Self-Insight 4.3 110

In the Lead 111 How Attitudes Affect Leadership 112

Consider This! 112

vi CONTENTS

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Social Perception and Attributions 113 Perceptual Distortions 114

Attributions 115

In the Lead 116

Cognitive Differences 116 Patterns of Thinking and Brain Dominance 116

Leader’s Self-Insight 4.4 118 Problem-Solving Styles: Jungian Types 120

In the Lead 121

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 Leading with Head and Heart 136

Mental Models 136 Assumptions 138

Changing or Expanding Mental Models 138

In the Lead 139

Developing a Leader’s Mind 140 Independent Thinking 140

Leader’s Bookshelf 141 Open-Mindedness 142

Leader’s Self-Insight 5.1 143 Systems Thinking 144 Personal Mastery 145

Emotional Intelligence 146 What Are Emotions? 146

Why Are Emotions Important? 148 The Components of Emotional Intelligence 149

In the Lead 152

Leader’s Self-Insight 5.2 153

Leading with Love versus Leading with Fear 153

Leader’s Self-Insight 5.3 154 Fear in Organizations 154

In the Lead 155 Bringing Love to Work 156

Consider This! 156 Why Followers Respond to Love 157

Leadership Essentials 158

Discussion Questions 159

Leadership at Work 159

Mentors 159

Leadership Development: Cases for Analysis 160

The New Boss 160

The USS Florida 161

References 163

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

The Ethical Climate in Business 168 Leaders Set the Ethical Tone 169

In the Lead 169

Leader’s Self-Insight 6.1 171

Acting Like a Moral Leader 172

Becoming a Moral Leader 173

Servant Leadership 175 Authoritarian Management 176 Participative Management 176 Stewardship 177 The Servant Leader 177

In the Lead 178

Leader’s Self-Insight 6.2 179

Leading with Courage 179 What Is Courage? 180

Consider This! 180

In the Lead 181

Leader’s Self-Insight 6.3 183 How Does Courage Apply to Moral Leadership? 183

In the Lead 184 Finding Personal Courage 185

Leader’s Bookshelf 186

Leadership Essentials 187

Discussion Questions 188

Leadership at Work 188

Scary Person 188

Leadership Development: Cases for Analysis 189

“What Should I Say?” 189

The Boy, the Girl, the Ferryboat Captain, and the Hermits 190

References 191

CONTENTS vii

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Chapter 7: Followership 194 The Art of Followership 196

Learn to Manage Up as Well as Down 196 Managing Up Presents Unique Challenges 197

In the Lead 197

What Your Leader Wants from You 198

Styles of Followership 199

Leader’s Self-Insight 7.1 201

In the Lead 202

Strategies for Managing Up 202 Understand the Leader 202

Consider This! 203

Leader’s Self-Insight 7.2 204 Tactics for Managing Up 204

In the Lead 206

Leader’s Bookshelf 207

The Power and Courage to Manage Up 208

Sources of Power for Managing Up 208

Necessary Courage to Manage Up 209

In the Lead 210

What Followers Want from Leaders 211 Clarity of Direction 212 Opportunities for Growth 212

Frequent, Specific, and Immediate Feedback 213

Leader’s Self-Insight 7.3 214 Protection from Organizational Intrusions 215

Leadership Essentials 215

Discussion Questions 216

Leadership at Work 216

Follower Role Play 216

Leadership Development: Cases for Analysis 217

Waiting for Clearance 217

Jake’s Pet Land 218

References 220

PART 4: THE LEADER AS A RELATIONSHIP BUILDER 223 Chapter 8: Motivation and Empowerment 224 Leadership and Motivation 226

Intrinsic and Extrinsic Rewards 227 Positive and Negative Motives 228

Needs-Based Theories of Motivation 230 Hierarchy of Needs Theory 230

Two-Factor Theory 231

Leader’s Self-Insight 8.1 233

In the Lead 233 Acquired Needs Theory 234

Other Motivation Theories 235

Consider This! 235 Reinforcement Perspective on Motivation 236

Expectancy Theory 238 Equity Theory 239

Leader’s Self-Insight 8.2 240

Empowering People to Meet Higher Needs 241 The Psychological Model of Empowerment 241

Leader’s Bookshelf 242 Job Design for Empowerment 242

In the Lead 244 Empowerment Applications 244

Giving Meaning to Work Through Engagement 245

Leader’s Self-Insight 8.3 246

In the Lead 247

New Ideas for Motivation 248 The Making Progress Principle 248 Building a Thriving Workforce 248

Leadership Essentials 249

Discussion Questions 250

Leadership at Work 251

Should, Need, Like, Love 251

Leadership Development: Cases for Analysis 252

Commissions for Charlotte 252

Sun Spots 254

References 255

Chapter 9: Leadership Communication 258 How Leaders Communicate 260

Leader’s Self-Insight 9.1 262 Management Communication 262 The Leader as Communication Champion 262

Consider This! 264

Leading Strategic Conversations 264

In the Lead 265

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Creating an Open Communication Climate 265

Asking Questions 266 Listening 267

In the Lead 268

Leader’s Self-Insight 9.2 269 Dialogue 269

Communicating with Candor 271

Leader’s Self-Insight 9.3 272 The Power of Stories 272

Leader’s Bookshelf 273

Communicating to Persuade and Influence 274

Selecting the Correct Communication Channel 275 The Continuum of Channel Richness 275

In the Lead 277 Effectively Using Electronic Communication Channels 277

Nonverbal Communication 278

Current Communication Challenges 280 Leadership via Social Media 280 Being Crisis-Ready 281

In the Lead 281

Leadership Essentials 282

Discussion Questions 283

Leadership at Work 283

Listen Like a Professional 283

Leadership Development: Cases for Analysis 285

The Superintendent’s Directive 285

Hunter-Worth 286

References 287

Chapter 10: Leading Teams 290 The Value of Teams 292

What Is a Team? 292

Consider This! 293 Types of Teams 294

In the Lead 295

The Dilemma for Team Members 296

Leader’s Self-Insight 10.1 297

Leading a Team to High Performance 298

Team Processes 299 How Teams Develop 299

Leader’s Bookshelf 300

In the Lead 302

Team Cohesiveness 302

Team Norms 303

What Team Members Must Contribute 304 Essential Team Competencies 304

Leader’s Self-Insight 10.2 305 Team Member Roles 305

Leading a Virtual Team 306

In the Lead 307 Uses of Virtual Teams 308 Challenges of Virtual Teams 308

Handling Team Conflict 309 Types of Conflict 310 Balancing Conflict and Cooperation 310

Causes of Conflict 311 Styles to Handle Conflict 311

Leader’s Self-Insight 10.3 313 Negotiation 314

Leadership Essentials 315

Discussion Questions 316

Leadership at Work 316

Team Feedback 316

Leadership Development: Cases for Analysis 317

Decision Time 317

Devereaux-Dering Group 319

References 320

Chapter 11: Developing Leadership Diversity 324 Leading People Who Aren’t Like You 326

Leader’s Self-Insight 11.1 327

Diversity Today 327 Definition of Diversity 327 Changing Attitudes toward Diversity 328

In the Lead 329 The Value of Organizational Diversity 329

Challenges Minorities Face 330

Leader’s Self-Insight 11.2 331 Prejudice, Stereotypes, and Discrimination 331

The Glass Ceiling 332

Leader’s Bookshelf 334

In the Lead 334

Ways Women Lead 336

Consider This! 336 Women as Leaders 337

CONTENTS ix

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Is Leader Style Gender-Driven? 338

In the Lead 338

Global Diversity 339 The Sociocultural Environment 339 Social Value Systems 340

Leader’s Self-Insight 11.3 341 Developing Cultural Intelligence 343 Leadership Implications 343

Becoming an Inclusive Leader 345

In the Lead 346

Ways to Encourage the Advancement of Women and Minorities 347

Employee Affinity Groups 348

Minority Sponsorship 348

Leadership Essentials 349

Discussion Questions 350

Leadership at Work 351

Personal Diversity 351

Leadership Development: Cases for Analysis 352

True to Myself 352

The Trouble with Bangles 353

References 354

Chapter 12: Leadership Power and Influence 358 Four Kinds of Influential Leadership 360

Transformational Leadership 360 Charismatic Leadership 361

Leader’s Self-Insight 12.1 362 Coalitional Leadership 363

In the Lead 364 Machiavellian-Style Leadership 366

Leader’s Bookshelf 367

Leader’s Self-Insight 12.2 368

In the Lead 368

Using Hard versus Soft Power 369 Specific Types of Power 370

In the Lead 372 Follower Responses to the Use of Power 373

Consider This! 373

Increasing Power Through Political Activity 374 Leader Frames of Reference 374

Leader’s Self-Insight 12.3 376 Political Tactics for Asserting Leader Influence 377

In the Lead 379

Don’t Take Power Personally 380

Leadership Essentials 381

Discussion Questions 382

Leadership at Work 383

Circle of Influence 383

Leadership Development: Cases for Analysis 384

The Suarez Effect 384

Waite Pharmaceuticals 386

References 387

PART 5: THE LEADER AS SOCIAL ARCHITECT 391 Chapter 13: Creating Vision and Strategic Direction 392 The Leader’s Job: Looking Forward 394

Stimulating Vision and Action 394

Consider This! 395 Strategic Leadership 396

In the Lead 397

Leadership Vision 398

Leader’s Bookshelf 399 What Vision Does 400

Leader’s Self-Insight 13.1 401

Leader’s Self-Insight 13.2 403 Common Themes of Vision 403 Leader Steps to Creating a Vision 405

In the Lead 406

Mission 406 What Mission Does 406

A Framework for Noble Purpose 408

In the Lead 410

The Leader as Strategist-in-Chief 411 How to Achieve the Vision 411

In the Lead 412 How to Execute 413

Leader’s Self-Insight 13.3 414

Leadership Essentials 417

Discussion Questions 418

Leadership at Work 418

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Future Thinking 418

Leadership Development: Cases for Analysis 420

The New Museum 420

The Visionary Leader 421

References 423

Chapter 14: Shaping Culture and Values 426 Organizational Culture 428

What Is Culture? 428

Leader’s Bookshelf 429 Importance of Culture 431

In the Lead 431

Consider This! 432

Culture Strength, Responsiveness, and Performance 433

Responsive Cultures 433

Leader’s Self-Insight 14.1 434 The High-Performance Culture 435

In the Lead 437

Cultural Leadership 438 Ceremonies 438 Stories 439 Symbols 439

Specialized Language 440 Selection and Socialization 440 Daily Actions 441

The Competing Values Approach to Shaping Culture 441

Leader’s Self-Insight 14.2 443 Adaptability Culture 444

In the Lead 444 Achievement Culture 444 Involvement Culture 445 Consistency Culture 445

Ethical Values in Organizations 446

In the Lead 446

Values-Based Leadership 447 Personal Values 447

In the Lead 447 Spiritual Values 448

Leader’s Self-Insight 14.3 449

Leadership Essentials 451

Discussion Questions 452

Leadership at Work 452

Walk the Talk 452

Leadership Development: Cases for Analysis 454

Culture Clash 454

5 Star and Amtech 455

References 456

Chapter 15: Leading Change 460 Leadership Means Leading Change 462

Resistance Is Real 463 The Leader as Change Agent 463

Leader’s Self-Insight 15.1 464

In the Lead 464

A Framework for Change 465

Using Appreciative Inquiry 467 Applying Appreciative Inquiry on a Large Scale 467

Leader’s Self-Insight 15.2 468

In the Lead 470 Applying Appreciative Inquiry Every Day 470

Leader’s Bookshelf 471

Leading Creativity for Change 471 Instilling Creative Values 472 Leading Creative People 473

Leader’s Self-Insight 15.3 474

Implementing Change 479

Consider This! 479 Helping People Change 480

The Keys That Help People Change 481

In the Lead 481

Leadership Essentials 483

Discussion Questions 484

Leadership at Work 484

Organizational Change Role Play 484

Leadership Development: Cases for Analysis 486

“From This Point On …” 486

Riverside Pediatric Associates 487

References 488

Name Index 491

Index of Organizations 495

Subject Index 499

CONTENTS xi

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ABOUT THE AUTHOR

Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management in the Owen Graduate School of Management at Vanderbilt University. Professor Daft specializes in the study of leadership and organization 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 associ- ate editor-in-chief of Organization Science, and served for three years as associate editor of Administrative Science Quarterly.

Professor Daft has authored or coauthored 13 books. His latest books include The Executive and the Elephant: A Leader’s Guide to Building Inner Excellence and Building Management Skills: An Action First Approach (with Dorothy Marcic). He is also the author of Organization Theory and Design, Management, and Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (with Robert Lengel). He has also authored dozens of scholarly articles, papers, and chapters. His work has been published in Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, Strategic Management Journal, Journal of Management, Accounting Organizations and Society, Management Science, MIS Quarterly, California Management Review, Leadership Excellence, Leader to Leader, and Organizational Behavior Teaching Review.

Dr. Daft also is an active teacher and consultant. He has taught leadership, leading change, management, organizational theory, and organizational behavior. He has also produced for-profit theatrical productions and helped manage a start- up enterprise. He has been involved in management development and consulting for many companies and government organizations, including the National Academy of Science, Oak Ridge National Laboratory, American Banking Association, AutoZone, Aegis Technology, Bell Canada, Nortel, Bridgestone, TVA, Pratt & Whitney, Allstate Insurance, State Farm Insurance, the United States Air Force, the U.S. Army, Central Parking System, USAA, Bristol-Myers Squibb, Eli Lilly, and the Vanderbilt University Medical Center.

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PREFACE

Many leaders have recently had their assumptions challenged about how organiza- tions succeed. Leaders are struggling to make sense of the shifting environment and learn how to lead effectively and successfully in the midst of turmoil. The crisis in the housing, mortgage, and finance industries and resulting recession; the failures of sev- eral large, long-standing organizations and the government bailout of others; volatile oil prices; ethical scandals; political turmoil; and other events have dramatically shifted the organizational and economic landscape. This edition of The Leadership Experience addresses themes and issues that are directly relevant to the current turbulent environment. My vision for the sixth edition is to give students an exciting, applied, and comprehensive view of what leadership is like in today’s world. The Leadership Experience integrates recent ideas and applications with established scholarly research in a way that makes the topic of leadership come alive. Organizations are undergoing major changes, and this textbook addresses the qualities and skills leaders need in this rapidly evolving world.

Recent chaotic events, combined with factors such as a growing need for creativity and innovation in organizations, the rise of social media, the growth of e-business and mobile commerce, the use of virtual teams and telecommuting, glob- alization, the emerging problem of cybercrime, and other ongoing transformations place new demands on leaders that go far beyond the topics traditionally taught in courses on management or organizational behavior. My experiences teaching leadership to students and managers, and working with leaders to change their organizations, have affirmed for me the value of traditional leadership concepts while highlighting the importance of including new ideas and applications.

The Leadership Experience thoroughly covers the history of leadership studies and the traditional theories but goes beyond that to incorporate valuable ideas such as lead- ership vision, shaping culture and values, leadership courage, and the importance of moral leadership. The book expands the treatment of leadership to capture the excite- ment of the subject in a way that motivates students and challenges them to develop their leadership potential.