Leadership theory application and skill development 4e by lussier achua

APPLICATIONS

SKILL DEVELOPMENT

APPLYING THE CONCEPT

SKILL-DEVELOPMENT EXERCISES

MODELS

(total of 39; average of 3 boxes, 18
applications per chapter; partial
listing below)
1.1 Leadership Managerial Roles
2.3 Achievement Motivation
Theory
3.2 The Leadership Grid
4.2 Using Power
5.3 Path-Goal Leadership
6.3 Selecting Conflict
Management Styles
7.1 In-Groups versus Out-Groups
8.4 Group Problem People
9.4 Transformational or
Transactional Leadership
10.1 Low- or High-Performance
Culture
11.2 Strategic Thinking
12.2 Traditional or Learning
Organization

(total of 30; average of 2 per
chapter)
1.1 Getting to Know You by
Name
1.2 Identifying Leadership
Traits and Behaviors
2.1 Improving Attitudes and
Personality Traits
2.2 Personality Perceptions
2.3 Ethics and Whistleblowing
3.1 Writing Objectives
3.2 Giving Praise
4.1 Influencing Tactics
4.2 Influencing, Power, and
Politics
4.3 Networking Skills
4.4 Car Dealer Negotiation
5.1 Identifying Normative
Leadership Styles
5.2 Using the Normative
Leadership Models
6.1 Giving Instructions
6.2 Situational Communications
6.3 Coaching
6.4 Initiating Conflict Resolution
7.1 Improving Dyadic
Relationships—Followership
7.2 Delegating
8.1 Deciding Which Leadership

Decision-Making Style to Use
8.2 Individual Versus Group
Decision Making
9.1 Is the President of the United
States a Charismatic Leader?
10.1 Identifying and Improving
Organizational Culture
10.2 Diversity Training
10.3 Developing an Effective
Multicultural Team
11.1 Strategic Planning
11.2 Planning a Change Using
the Force-Field Model
11.3 Managing Change at Your
College
12.1 Handling a Crisis
12.2 The Learning Organization

3.1 Writing Effective Objectives
Model
3.2 Giving Praise
4.1 The Negotiation Process
6.1 The Oral Message-Sending
Process
6.2 Job Instructional Training Steps
6.3 The Performance Formula
6.4 Coaching Model
6.5 The Collaborating Conflict
Style
6.6 Situational Communication

7.1 Steps in the Delegation Model
8.1 Leadership Decision Making

WORK APPLICATION
(total of 107; average of 9 per
chapter; sample below)
1.4 Are the managers where you
work(ed) effective at
influencing their employees
to bring about change?
Explain.

CASES: CHAPTER OPENING
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

General Electric (GE)
Lorraine Monroe
Market America
Mark Cuban

Indra Nooyi (PepsiCo)
The Ranch Golf Club
Joel Osteen
John Chambers (Cisco)
Oprah Winfrey
Andrea Jung (Avon)
Google
Rick Wagoner (GM)

COMMUNICATION SKILLS
(total of 84; average of 7 per
chapter; sample below)
3.5 Which of the three process
motivation theories do you
prefer? Why?

SELF-ASSESSMENT EXERCISES
(total of 37; average of 3 per
chapter)
1.1 Leadership Potential
1.2 Names
2.1 Personality Profile
2.2 Motive Profile
2.3 Motive Profile with Socialized
Power
2.4 Leadership Interest
2.5 Theory X and Theory Y
Attitudes
2.6 How Ethical Is Your Behavior?
3.1 Your Leadership Style

3.2 Your Personality Traits and
Leadership Styles
3.3 Job Motivators and
Maintenance Factors
4.1 Influencing Tactics, Power, and
Personality Traits
4.2 Use of Political Behavior
4.3 Networking
4.4 Negotiating
5.1 Leadership Style
5.2 Your Personality and
Contingency Leadership
Theories
5.3 Determining Your Preferred
Normative Leadership Style
5.4 Your Leadership Continuum
and Path-Goal Leadership
Styles

Continued on
inside back cover


LEADERSHIP
Theory, Application, & Skill Development 4e

Robert N. Lussier, Ph.D.
Springfield College

Christopher F. Achua, D.B.A.

University of Virginia’s College at Wise

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States


Leadership, Fourth Edition

© 2010, 2007 South-Western, a part of Cengage Learning

Robert N. Lussier, Christopher F. Achua

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1 2 3 4 5 6 7 12 11 10 09


To my wife Marie and our six children:
Jesse, Justin, Danielle, Nicole, Brian, and Renee
Robert N. Lussier
To all the Achua brothers and sisters, my mother Theresia
Sirri, and last but not least, my wife Pauline and our children:
Justin, Brooke, Jordan, Cullen, Gregory, and Zora
Christopher F. Achua

B R I E F

C O N T E N T S

Preface

part one

Acknowledgments

xxiii

About the Authors

xxvi

Individuals as Leaders
1
2
3
4
5

part two

xiii

1

Who Is a Leader? 2

Leadership Traits and Ethics 30
Leadership Behavior and Motivation 68
Influencing: Power, Politics, Networking, and Negotiation 108
Contingency Leadership Theories 150

Team Leadership

187

6 Communication, Coaching, and Conflict Skills 188
7 Leader–Follower Relations 238
8 Team Leadership and Self-Managed Teams 278

part three

Organizational Leadership
9
10
11
12

327

Charismatic and Transformational Leadership 328
Leadership of Culture, Ethics, and Diversity 368
Strategic Leadership and Change Management 416
Crisis Leadership and the Learning Organization 450

Appendix: Leadership and Spirituality in the Workplace
Glossary

Endnotes
Index

iv

487
492

515

481


C O N T E N T S

Preface

xiii

Acknowledgments
About the Authors

part one
1

xxiii
xxvi

Individuals as Leaders
WHO IS A LEADER? 2

Leadership Is Everyone’s Business

1
3

Why Leadership Is Important 4 / Defining Leadership 5 / Self-Assessment 1:
Leadership Potential 5 / Are Leaders Born or Made? 9
Leadership Managerial Roles

9

Interpersonal Roles 10 / Informational Roles 11 / Decisional Roles 11
Levels of Analysis of Leadership Theory

13

Individual Level of Analysis 13 / Group Level of Analysis 14 / Organizational Level
of Analysis 14 / Interrelationships among the Levels of Analysis 15
Leadership Theory Paradigms

15

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 18 / Application of Leadership Theory 20 / Leadership Skill
Development 20 / Flexibility 21
Organization of the Book

21

Chapter Summary 22
Key Terms 23
Review Questions 23
Communication Skills 24
Case: Steve Jobs—–Apple 24
Video Case: Leadership at P.F. Chang’s 26
Skill-Development Exercise 1: Getting to Know You by Name 26
Self-Assessment 2: Names 27
Skill-Development Exercise 2: Identifying Leadership Traits and Behaviors
2

28

LEADERSHIP TRAITS AND ETHICS 30
Personality Traits and Leadership 32

Self-Assessment 1: Personality Profile 32 / Personality and Traits 33 / The Big Five
Model of Personality 33 / Personality Profiles 35
Traits of Effective Leaders

37

Dominance 37 / High Energy 38 / Self-Confidence 38 / Locus of Control 38 /
Stability 38 / Integrity 39 / Intelligence 39 / Flexibility 40 / Sensitivity to Others 41

v


vi

Contents

The Personality Profile of Effective Leaders

42

Achievement Motivation Theory 42 / Self-Assessment 2: Motive Profile 44 / Leader
Motive Profile Theory 44 / Self-Assessment 3: Motive Profile with Socialized
Power 45 / Self-Assessment 4: Leadership Interest 46
Leadership Attitudes

47

Theory X and Theory Y 48 / Self-Assessment 5: Theory X and Theory Y
Attitudes 48 / The Pygmalion Effect 49 / Self-Concept 50 / How Attitudes
Develop Leadership Styles 52
Ethical Leadership

52

Self-Assessment 6: How Ethical Is Your Behavior? 52 / Does Ethical Behavior Pay? 54 /
How Personality Traits and Attitudes, Moral Development, and the Situation Affect Ethical
Behavior 54 / How People Justify Unethical Behavior 56 / Simple Guides to Ethical
Behavior 58 / Stakeholder Approach to Ethics 58 / Being an Ethical Leader 59
Chapter Summary 60

Key Terms 61
Review Questions 62
Communication Skills 62
Case: The Bill & Melinda Gates Foundation 62
Video Case: “P.F.” Chang’s Serves Its Workers Well 64
Skill-Development Exercise 1: Improving Attitudes and Personality Traits
Skill-Development Exercise 2: Personality Perceptions 66
Skill-Development Exercise 3: Ethics and Whistleblowing 67
3

LEADERSHIP BEHAVIOR AND MOTIVATION
Leadership Behavior and Styles 70

64

68

Leadership Behavior 70 / Leadership Styles and the University of Iowa Research 70
University of Michigan and Ohio State University Studies

71

Self-Assessment 1: Your Leadership Style 71 / University of Michigan: Job-Centered
and Employee-Centered Behavior 72 / Ohio State University: Initiating Structure and
Consideration Behavior 73 / Differences Between Leadership Models—–and Their
Contributions 75
The Leadership Grid

75

Leadership Grid Theory 75 / Leadership Grid and High-High Leader Research and
Contributions 77 / Self-Assessment 2: Your Personality Traits and Leadership Styles 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 81 / Two-Factor Theory 82 / Self-Assessment 3: Job
Motivators and Maintenance Factors 83 / Acquired Needs Theory 85 / The Need to
Balance Professional and Personal Needs 87
Process Motivation Theories

87

Equity Theory 87 / Expectancy Theory 88 / Goal-Setting Theory 90
Reinforcement Theory

92

Types of Reinforcement 93 / Schedules of Reinforcement 94 / You Get What You
Reinforce 95 / Motivating with Reinforcement 96 / Giving Praise 97


Contents

Putting the Motivation Theories Together Within the Motivation Process

vii

99

Chapter Summary 100
Key Terms 102
Review Questions 102
Communication Skills 102
Case: Art Friedman—–Friedmans Appliance 102
Video Case: Motivation at Washburn Guitars 104
Skill-Development Exercise 1: Writing Objectives 104
Behavior Model Skills Training 1: Session 1 105
Behavior Model Video 1: Giving Praise 105
Skill-Development Exercise 2: Giving Praise 105
4

INFLUENCING: POWER, POLITICS, NETWORKING,
AND NEGOTIATION 108
Power 110
Sources of Power 110 / Types of Power and Influencing Tactics, and Ways to Increase
Your Power 111 / Self-Assessment 1: Influencing Tactics, Power, and Personality
Traits 119 / Acquiring and Losing Power 119
Organizational Politics

120

Self-Assessment 2: Use of Political Behavior 120 / The Nature of Organizational
Politics 121 / Political Behavior 122 / Guidelines for Developing Political Skills 124

Networking

127

Self-Assessment 3: Networking 127 / Perform a Self-Assessment and
Set Goals 128 / Create Your One-Minute Self-Sell 129 / Develop Your
Network 130 / Conduct Networking Interviews 131 / Maintain Your Network 132
Negotiation

133

Self-Assessment 4: Negotiating 133 / Negotiating 134 / The Negotiation
Process 135
Ethics and Influencing

140

Chapter Summary 141
Key Terms 142
Review Questions 142
Communication Skills 142
Case: Ron Johnson—–Department of Accounting 143
Video Case: Employee Networks at Whirlpool Corporation 145
Skill-Development Exercise 1: Influencing Tactics 145
Skill-Development Exercise 2: Influencing, Power, and Politics 146
Skill-Development Exercise 3: Networking Skills 147
Skill-Development Exercise 4: Car Dealer Negotiation 148
5

CONTINGENCY LEADERSHIP THEORIES 150

Contingency Leadership Theories and Models 152
Leadership Theories versus Leadership Models 152 / Contingency Theory and
Model Variables 152 / Global Contingency Leadership 153
Contingency Leadership Theory and Model

154

Leadership Style and the LPC 155 / Self-Assessment 1: Leadership Style Your
Fiedler LPC 155 / Situational Favorableness 156 / Determining the Appropriate
Leadership Style 156 / Research 158


viii

Contents

Leadership Continuum Theory and Model 159
Path-Goal Leadership Theory and Model 161
Situational Factors 162 / Leadership Styles 163 / Research 164
Normative Leadership Theory and Models

165

Leadership Participation Styles 166 / Model Questions to Determine the
Appropriate Leadership Style 167 / Selecting the Time-Driven or DevelopmentDriven Model for the Situation 169 / Determining the Appropriate Leadership
Style 170 / Research 170
Putting the Behavioral and Contingency Leadership Theories Together

171

Prescriptive and Descriptive Models 173
Leadership Substitutes Theory

173

Substitutes and Neutralizers 173 / Leadership Style 174 / Changing the
Situation 174 / Research 174 / Self-Assessment 2: Your Personality and
Contingency Leadership Theories 175
Chapter Summary 175
Key Terms 177
Review Questions 177
Communication Skills 177
Case: Rick Parr—–Archer Daniels Midland (ADM) Company 178
Video Case: Leadership at McDonald’s 179
Self-Assessment 3: Determining Your Preferred Normative Leadership Style 180
Skill-Development Exercise 1: Identifying Normative Leadership Styles 183
Skill-Development Exercise 2: Using the Normative Leadership Models 183
Self-Assessment 4: Your Leadership Continuum and Path-Goal Leadership Styles 185

part two
6

Team Leadership

187

COMMUNICATION, COACHING, AND CONFLICT SKILLS
Communication 189

188

Communication and Leadership 190 / Sending Messages and Giving Instructions 190 /
Receiving Messages 193 / Self-Assessment 1: Listening Skills 193
Feedback

197

The Importance of Feedback 197 / Common Approaches to Getting Feedback
on Messages—–and Why They Don’t Work 198 / How to Get Feedback on
Messages 199 / 360-Degree Multirater Feedback 200
Coaching

201

Coaching and Leadership 201 / How to Give Coaching Feedback 201 / What Is
Criticism and Why Doesn’t It Work? 205 / The Coaching Model for Employees Who
Are Performing Below Standard 207 / Mentoring 209
Managing Conflict

210

The Psychological Contract 210 / Conflict and Leadership 210 / Conflict
Management Styles 210
Collaborating Conflict Management Style Models

215

Initiating Conflict Resolution 215 / Responding to Conflict
Resolution 217 / Mediating Conflict Resolution 217 / Self-Assessment 2: Your
Personality Traits and Communication, Feedback, Coaching, and Conflict Management

Style 218


Contents

ix

Chapter Summary 220
Key Terms 221
Review Questions 221
Communication Skills 221
Case: Lawrence Weinbach—–from Unisys Corporation to Yankee Hill Capital
Management 222
Video Case: Communication at Navistar International 224
Skill-Development Exercise 1: Giving Instructions 224
Behavior Model Skills Training 1 226
Self-Assessment 3: Determining Your Preferred Communication Style 226
The Situational Communications Model 229
Behavior Model Video 6.1: Situational Communications 232
Skill-Development Exercise 2: Situational Communications 232
Behavior Model Skills Training 2 233
The Coaching Model 233
Behavior Model Video 6.2: Coaching 232
Skill-Development Exercise 3: Coaching 233
Behavior Model Skills Training 3 235
The Initiating Conflict Resolution Model 235
Behavior Model Video 6.3: Initiating Conflict Resolution 235
Skill-Development Exercise 4: Initiating Conflict Resolution 235
Behavior Model Video 6.4: Mediating Conflict Resolution 237
7

LEADER–FOLLOWER RELATIONS 238
Evolution of the Dyadic Theory 240
Vertical Dyadic Linkage (VDL) Theory 241 / Self-Assessment 1: Dyadic Relationship
with Your Manager 241 / Leader–Member Exchange (LMX) Theory 243 / Team
Building 244 / Systems and Networks 245
Leader–Member Exchange Theory

247

The Influence of LMX on Follower Behavior 247 / Self-Assessment 2:
In-Group and Out-Group 249 / The Three-Stage Process for Developing Positive
LMX Relations 249 / Factors that Determine LMX Quality 250 / Effective
Leader–Follower Feedback 251 / Limitations of LMX Theory Application 252 /
Self-Assessment 3: Your LMX Relationship with Your Manager 253 / Bias in LMX:
Employee Career Implications 254
Followership

254

The Effective Follower, and Follower Types 255 / Self-Assessment 4:
Effective Followership 257 / Guidelines to Becoming an Effective
Follower 258 / Determinants of Follower Influence 261 / Dual Role of Being a
Leader and a Follower 263
Delegation

264

Delegating 264 / Delegation Decisions 265 / Self-Assessment 5: Followership
and Personality 266 / Delegating with the Use of a Model 267

Chapter Summary 269
Key Terms 270
Review Questions 271
Communication Skills 271
Case: W. L. Gore & Associates 271
Video Case: Delegation at Boyne USA Resorts 274
Skill-Development Exercise 1: Improving Dyadic Relationships—–Followership
Behavior Model Skills Training 275

274


x

Contents

The Delegation Model 275
Behavior Model Video 7.1: Delegating 275
Skill-Development Exercise 2: Delegating 275
8

TEAM LEADERSHIP AND SELF-MANAGED TEAMS
The Use of Teams in Organizations 280

278

Groups Versus Teams: What Is the Difference? 281 / Advantages and
Disadvantages of Teamwork 282 / Self-Assessment 1: Assessing Teamwork in
Your Group 284 / Characteristics of Effective Teams 285 / Self-Assessment 2:
Assessing the Climate for Creativity 292

Types of Teams

293

Functional Team 293 / Cross-Functional Team 294 / Virtual Team 296 /
Self-Managed Team (SMT) 296
Decision Making in Teams

297

Leader-Centered Decision-Making Model 297 / Team-Centered Decision-Making
Model 298 / Self-Assessment 3: Personality Traits and Teams 299 / Normative
Leadership Model 300
Leadership Skills for Effective Team Meetings

300

Planning Meetings 300 / Conducting Meetings 302 / Handling Problem
Members 303
Self-Managed Teams

305

The Nature of Self-Managed Teams 306 / The Benefits of Self-Managed
Teams 308 / Guidelines for Improving Self-Managed Team Effectiveness 309 /
The Changing Role of Leadership in Self-Managed Teams 312 / The Challenges
of Implementing Self-Managed Teams 313
Chapter Summary 314
Key Terms 317
Review Questions 317

Communication Skills 317
Case: Frederick W. Smith—–FedEx 318
Video Case: The NEADS Team: People and Dogs 320
Behavior Model Skills Training 320
Leadership Decision-Making Model: Deciding Which Leadership Decision-Making Style
to Use (Part I) 320
Behavior Model Video 8.1 and Video Exercise: Deciding Which Leadership
Decision-Making Style to Use (Part II) 323
Skill-Development Exercise 1: Deciding Which Leadership Decision-Making Style to Use
(Parts III & IV) 323
Skill-Development Exercise 2: Individual Versus Group Decision Making 325

part three
9

Organizational Leadership

327

CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP
Personal Meaning 330

328

Factors That Influence Personal Meaning 331
Charisma

334

Weber’s Conceptualization of Charisma 334 / Differentiating Between Charismatic

and Noncharismatic Leaders 335


Contents

Charismatic Leadership

xi

337

Locus of Charismatic Leadership 337 / The Effects of Charismatic
Leadership 338 / Qualities of Charismatic Leaders 341 / How One Acquires
Charismatic Qualities 344 / Charisma: A Double-Edged Sword 345
Transformational Leadership

347

The Effects of Transformational Leadership 348 / Charismatic versus Transformational
Leadership 349 / Transformational Leader Behaviors and Attributes 350 /
Transformational versus Transactional Leadership 352 / Self-Assessment 1: Are
You More of a Transactional or Transformational Leader? 352 / The Transformation
Process 354
Stewardship and Servant Leadership

356

The Nature of Stewardship and Servant Leadership 357 / Framework for
Stewardship 357 / Framework for Servant Leadership 358 / Self-Assessment 2:
Personality and Charismatic and Transformational Leadership 360

Chapter Summary 360
Key Terms 363
Review Questions 363
Communication Skills 364
Case: Anne Mulcahy and Ursula Burns: Xerox’s Dynamic Duo 364
Video Case: Timbuk2: Former CEO Sets a Course 366
Skill-Development Exercise 1: Is the President of the United States a Charismatic
Leader? 366
10

LEADERSHIP OF CULTURE, ETHICS, AND DIVERSITY
Culture Creation and Sustainability 370

368

The Power of Culture 371 / Low- and High-Performance
Cultures 373 / Characteristics of Low-Performance Cultures 373 / Characteristics
of High-Performance Cultures 375 / The Role of Leadership in Culture Creation and
Sustainability 378 / Cultural Value Types 382
Values-Based Leadership

387

Self-Assessment 1: Personal Values 387 / The Leader’s Role in Advocating
Ethical Behavior 388 / National Culture Identities—–Hofstede’s Value
Dimensions 391 / Implications for Leadership Practice 392
Changing Demographics and Diversity

394

Current State of Workforce Diversity 394 / The Impact of Globalization on
Diversity 395 / Reasons for Embracing Diversity 396 / Obstacles to Achieving
Diversity 398 / Creating a Culture That Supports Diversity 400 / Diversity
Awareness Training and Leadership Education 403 / Self-Assessment 2: Personality,
Culture, Values, and Diversity 406
Chapter Summary 407
Key Terms 409
Review Questions 409
Communication Skills 410
Case: Robert Stevens Continues Lockheed Martin’s Diversity Initiatives 410
Video Case: Diversity at PepsiCo 412
Skill-Development Exercise 1: Identifying and Improving Organizational
Culture 413
Skill-Development Exercise 2: Diversity Training 413
Skill-Development Exercise 3: Developing an Effective Multicultural Team 414


xii

Contents

11

STRATEGIC LEADERSHIP AND CHANGE MANAGEMENT
Strategic Leadership 418

416

Strategic Leadership Failures 419 / Strategic Management 420 / The Strategic
Management Process 421

Implementing Change

431

The Need for Change 432 / The Role of Leadership in Implementing
Change 434 / The Change Management Process 435 / Why People Resist
Change 438 / Strategies for Minimizing Resistance to Change 441 /
Self-Assessment 1: Personality, Leadership, and Change 442
Chapter Summary 443
Key Terms 444
Review Questions 445
Communication Skills 445
Case: Mark Parker: A Seasoned Veteran Takes the Helm at Nike 445
Video Case: Original Penguin Spreads Its Wings 447
Skill-Development Exercise 1: Strategic Planning 447
Skill-Development Exercise 2: Planning a Change Using the Force-Field Model
Skill-Development Exercise 3: Managing Change at your college 449
12

CRISIS LEADERSHIP AND THE LEARNING ORGANIZATION
Crisis Leadership 452

448

450

The Impact of Environmental Factors 453 / Crisis Management Plan 453 / Effective
Crisis Communication 460
The Learning Organization and Knowledge Management

463

What Is a Learning Organization? 464 / Self-Assessment 1: Learning
Organizations 465 / The Traditional versus the Learning Organization
Culture 466 / The Role of Leaders in Creating a Learning Organization 469 /
Self-Assessment 2: Personality and Crisis and the Learning Organization 473
Chapter Summary 473
Key Terms 475
Review Questions 475
Communication Skills 475
Case: CEO A. G. Lafley’s Transformation of P&G 476
Video Case: Managing in Turbulent Times at Second City Theater
Skill-Development Exercise 1: Handling a Crisis 478
Skill-Development Exercise 2: The Learning Organization 479
Appendix: Leadership and Spirituality in the Workplace
Glossary
Endnotes
Index

487
492

515

481

478


P R E F A C E

Target Market
This book is intended for leadership courses offered at the undergraduate
and graduate levels in schools of business, 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 leadership, 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 calls by the Association to Advance Collegiate
Schools of Business (AACSB) and the Secretary’s Commission on Achieving
Necessary Skills (SCANS) for skill development and outcomes assessment—to
help professors teach their students 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.1 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 developed 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 distinction between coverage of theory concepts,
their application, and the development of skills based on the concepts. 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 behav-

ior 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 without getting bogged down in too much
detail.
• To create a variety of high-quality application material, using the concepts to

develop critical-thinking skills.
xiii


xiv

Preface

• To create a variety of high-quality skill-development exercises, which build lead-

ership skills that can be used in students’ personal and professional life.
• To offer behavior-modeling leadership skills training.
• To make available a video package, 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.
• To provide a flexible teaching package, so that professors can design the course

to best meet the leadership needs of their students. The total package includes
more material than can be covered in one course. Supplemental material is
included, thus only one book is needed—making it a low-cost alternative for the
student.

Flexibility Example
The textbook, with 12 chapters, allows time for other materials to be used in the
leadership course. The textbook includes all the traditional topics in enough detail,
however, to use only the textbook for the course. It offers so much application and
skill-development material that it cannot all be covered in class during one semester. Instructors have the flexibility to select only the content and features that best
meet their needs.

Specific Competitive Advantage—
Pedagogical Features
Three-Pronged Approach
We created course materials that truly develop students into leaders. As the title
of this book implies, we provide a balanced, three-pronged approach to the
curriculum:
• A clear understanding of the traditional theories and concepts of leadership, as

well as of the most recently developed leadership philosophies
• Application of leadership concepts through critical thinking
• Development of leadership skills

The three-pronged approach is clear in the textbook and is carried throughout
the Instructor’s Manual and Test Bank.

Theory
Leadership Theories, Research and References, and Writing Style: This book has been
written to provide the best coverage of the traditional leadership theories, presenting the theories and research findings clearly without being bogged down in too
much detail. The book is heavily referenced with classic and current citations.
Unlike the textbooks of some competitors, this book does not use in-text citations,
to avoid distracting the reader and adding unnecessary length to the text chapters.


Preface

Readers can refer to the notes at the end of the book for complete citations of
all sources. Thus, the book includes all the traditional leadership topics, yet we
believe it is written in a livelier, more conversational manner than those of our
competitors.
The following features are provided to support the first step in the three-pronged
approach—theory.
Learning Outcomes: Each chapter begins with Learning Outcomes. At the end of the
chapter, the Learning Outcomes are integrated into the chapter summary.
Key Terms: A list of key terms appears at the beginning and end of each chapter.
Clear definitions are given in the text for approximately 15 of the most important
concepts from the chapter (with the key term in bold and the definition in italic).
Chapter Summary: The summary lists the Learning Outcomes from the beginning
of the chapter and gives the answers. For each chapter, the last Learning Outcome
requires students to define the key terms of the chapter by writing the correct key
term in the blank provided for each definition.
Review Questions: These questions require recall of information generally not covered in the Learning Outcomes.
Product Support Web Site: The product support Web site, www.cengage.com/management/lussier, has information for both professors and students. Students can
take interactive quizzes, written by Kenneth Zula of Keystone College, and quiz
themselves on key terms.

Test Bank (Assessment of Understanding of Theory/Concepts) and Instructor’s Manual:
The Test Bank includes traditional assessment of student knowledge. It also
includes the Learning Outcomes and Review Questions for each chapter. The
Instructor’s Manual includes the answers to all Review Questions.

Application
The second prong of our textbook is to have students apply the leadership theories
and concepts so that they can develop critical-thinking skills. Students develop their
application skills through the following features.
Opening Case Application: At the beginning of each chapter, information about an
actual manager and organization is presented. The case is followed by four to eight
questions to get students involved. Throughout the chapter, the answers to the
questions are given to illustrate how the manager/organization actually uses the
text concepts to create opportunities and solve problems through decision making.
A distinctive head (Opening Case APPLICATION) appears when the opening case is
applied in the text.

Opening Case

A P P L I C A T I O N

1. What Big Five personality traits does Lorraine Monroe possess?
To a large extent, Lorraine Monroe was a successful founder and leader because of her
strong personality in the Big Five. She has a strong need for surgency, is conscientious,
and is open to new experience as she does consulting to bring about better educational
leadership to help public school children. Lorraine was not afraid to step on toes and
be disagreeable at Frederick Douglass Academy as she took strong control over the
school and enforced discipline conducive to learning, while maintaining overall emotional
stability.

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Preface
Work
Application 1
Recall a present or past job.
Were you both a leader and a
follower? Explain.

Work Applications: Open-ended questions, called Work Applications, require
students to explain how the text concepts apply to their own work experience;
there are over 100 of these scattered throughout the text. Student experience
can be present, past, summer, full-time, or part-time employment. The questions
help the students to bridge the gap between theory and the real world. The Work
Applications are also included in the Test Bank, to assess students’ ability to apply
the concepts.
Applying the Concept: Every chapter contains a series of two to six Applying the
Concept boxes that require students to determine the leadership concept being
illustrated in a specific, short example. All the recommended answers appear
in the Instructor’s Manual with a brief explanation. In addition, the Test Bank
has similar questions, clearly labeled, to assess students’ ability to apply the
concepts.

Applying the Concept 1
Big Five Personality Dimensions
Identify each of these seven traits/behaviors by its personality dimension. Write the
appropriate letter in the blank before each item.

a. surgency
b. agreeableness
c. adjustment

d. conscientiousness
e. openness to experience

1. The manager is influencing the follower to do the job the way the leader wants
it done.
2. The sales representative submitted the monthly expense report on time as
usual.
3. The leader is saying a warm, friendly good morning to followers as they arrive
at work.
4. The leader is seeking ideas from followers on how to speed up the flow of
work.
5. As a follower is yelling a complaint, the leader calmly explains what went
wrong.
6. The leader is being very quiet when meeting some unexpected visitors in the
work unit.
7. The leader is giving in to a follower to avoid a conflict.

Communication Skills: New to this edition are more than 80 critical-thinking questions (an average of 7 per chapter) that can be used for class discussion and/or written assignments to develop communication skills.
Cases: Following the Review Questions and Communication Skills, students are
presented with another actual manager and organization. The students learn how
the manager/organization applies the leadership concepts from that chapter. Each
Case is followed by questions for the student to answer. Chapters 2 through 11
also include cumulative case questions. Cumulative questions relate case material
from prior chapters. Thus, students continually review and integrate concepts from
previous chapters. Answers to the Case questions are included in the Instructor’s
Manual.

Video Cases: All chapters include one Video Case. Seeing actual leaders tackling
real management problems and opportunities enhances student application of the
concepts. The 12 Video Cases have supporting print material for both instructors
and students, including a brief description and critical-thinking questions. Answers
to the Video Case questions are included in the Instructor’s Manual.


Preface

V I D E O

C A S E

Motivation at Washburn Guitars

F

ounded in the late 1800s in Chicago, Washburn
Guitars boasts a rich tradition of fine instrument
making. Today the company sells more than 50,000
guitars annually, totaling about $40 million in revenue.
Washburn Guitars produces a variety of acoustic and
electric guitars. Washburn craftsmen also enjoy making
custom guitars. In recent years, custom shop production has grown dramatically from 20 to 300 guitars
per month. Having a motivated workforce is essential
because guitar making is labor intensive and requires
attention to detail. Quality materials combined with quality

craftsmanship are necessary to produce quality guitars.
Washburn Guitars’ workforce is motivated because they

love music and care about the instruments.
1. What motivates most employees at Washburn
Guitars?
2. What kinds of guitars do employees most like to
produce?
3. What is the connection between quality guitars and
workforce motivation?

Test Bank (Assessment of Application Ability) and Instructor’s Manual: The Test Bank
includes Work Applications and Applying the Concept questions. The Instructor’s
Manual contains detailed answers for all of the application features.

Skill Development
The difference between learning about leadership and learning to be a leader is
the acquisition of skills, our third prong. This text focuses on skill development so
students can use the leadership theories and concepts they learn to improve their
personal and professional life.
Self-Assessments: Scattered throughout the text are 37 Self-Assessments. Students complete these exercises to gain personal knowledge. All information for completing and
scoring the assessments is contained within the text. Students determine their personality profile in Chapter 2, and then assess how their personality affects their leadership
in the remaining chapters. Self-knowledge leads students to an understanding of how
they can and will operate as leaders in the real world. Although Self-Assessments do
not develop a specific skill, they serve as a foundation for skill development.

S E L F - A S S E S S M E N T

2

Personality and Charismatic and Transformational Leadership
Charismatic leaders have charisma based on
personality and other personal traits that cut across all

of the Big Five personality types. Review the ten qualities of charismatic leaders in Exhibit 9.3 on page 341.
Which traits do you have?

using socialized, rather than personalized, charismatic
leadership.
Transformational leaders tend to be charismatic
as well. In Self-Assessment 1 on pages 352-353 you
determined if you were more transformational or
transactional. How does your personality affect your
transformational and transactional leadership styles?

If you have a high surgency Big Five personality style
and a high need for power, you need to focus on

Ethical Dilemma: There are 24 Ethical Dilemma boxed items. The boxes present
issues of ethics for class discussion, with many presenting actual situations
faced by real companies. Each dilemma contains two to four questions for class
discussion.

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Preface
Ethical Dilemma 2
Executive Compensation
Executive compensation is a complex and controversial subject. Executive management skill has a direct impact on the success of the firm. Top executives should be paid
multimillion dollar compensation packages; after all, if it weren’t for some effective
CEOs, companies would not be making the millions of dollars of profits they make each

year. They deserve a peace of the pie they helped create.65
However, top executives have been criticized for being overpaid. In 2006, total
direct compensation (including salary, bonus, and the value of restricted stock) for
CEOs of 350 major companies was $6.05 million (not including generous pensions,
deferred compensation, and other perks).66 Investors have been complaining about
executive pay and trying to cut it back, without much success.67
1. Do executives deserve to make 200 times as much as the average worker?
2. Is it ethical for managers to take large pay increases while laying off employees?
3. Are companies being socially responsible when paying executives premium
compensation?

Case Role-Play Exercise: Following each Case are instructions to prepare students to
conduct an in-class role-play, based on a situation presented in the Case. Through
role-playing, students develop their skills at handling leadership situations.
For example, students are asked to conduct a motivational speech and to develop
a vision and a mission statement for an organization.
Step-by-Step Behavior Models: In addition to traditional theories of leadership, the
text includes behavior models: how-to steps for handling day-to-day leadership
functions, such as how to set objectives, give praise, coach, resolve conflicts, delegate, and negotiate.
Behavior Model Videos: There are seven Behavior Model Videos that reinforce the
development of skills. The videos demonstrate leaders successfully handling common leadership functions, using the step-by-step behavior models discussed earlier
in the Theory section. Students learn from watching the videos and/or using
them in conjunction with the Skill-Development Exercises. Material in the text
integrates the videos into the chapters. Ideas for using all videos are detailed in the
Instructor’s Manual.
Behavior Model Video 7.1
Objective
To observe a manager delegating a task to an employee.

Delegating

Video (4½ minutes) Overview
You will watch a production manager, Steve, delegate the
completion of a production output form to Dale.

Skill-Development Exercises: There are between one and four Skill-Development
Exercises at the end of each chapter. We use the term skill-development exercise only
in referring to an exercise that will develop a skill that can be used in the students’
personal or professional life at work. Full support of 30 activities can be found in
the Instructor’s Manual, including detailed information, timing, answers, and so
on. There are three primary types of exercises:

Individual Focus. Students make individual decisions about exercise questions
before or during class. Students can share their answers in class discussions, or the
instructor may elect to go over recommended answers.
Group/Team Focus. Students discuss the material presented and may select
group answers and report to the class.


Preface

Role-Play Focus. Students are presented with a model and given the opportunity
to use the model to apply their knowledge of leadership theories through roleplaying exercises.
Behavior Model Skills Training: Six of the Skill-Development Exercises may be used
as part of behavior modeling by using the step-by-step models in the text and the
Behavior Model Videos. Meta-analysis research has concluded that behavior modeling skills training is effective at developing leadership skills. For example, students
read the conflict resolution model in the text, watch the video in class, and then
complete a Skill-Development Exercise (role-play) to resolve a conflict, using the
model and feedback from others.

Behavior Model Skills Training

In this behavior model skills training session, you will perform three activities:

3. Complete Skill-Development Exercise 2 (to develop
your delegating skills).

1. Read the section, “Delegation,” in this chapter (to
learn how to use Model 7.1, page 268).

For further practice, use the delegation model in your personal and professional life.

2. Watch Behavior Model Video 7.1, “Delegating.”

Test Bank (Assessment of Skill Development) and Instructor’s Manual. The Test Bank
includes skill-development questions. The Instructor’s Manual contains detailed
answers for all of the skills featured in the text, including timing, information,
answers, logistics, and so on. It also explains how to test on the specific SkillDevelopment Exercises, and provides information that can be shared with students
to help them prepare for exams.

Ancillary Support
Instructor’s Manual with Test Bank (0-324-78300-0)
(Prepared by Robert N. Lussier, Christopher F. Achua, and David McCalman,
University of Central Arkansas)
The Instructor’s Manual and Test Bank are organized to complement the threepronged approach of the text—theory, application, and skill development.
The Instructor’s Manual contains the following for each chapter of the book:
a detailed outline for lecture enhancement, Review Question answers, Applying
the Concept answers, Case and Video Case question answers, instructions on use
of videos, and Skill-Development Exercise ideas (including setup and timing).
The Instructor’s Manual also contains an introduction that discusses possible
approaches to the course, and provides an overview of possible uses for various
features and how to test and grade them. It explains the use of permanent groups

to develop team leadership skills, and provides guidance in the development of a
course outline/syllabus.
The Test Bank offers over 800 true/false, multiple choice, and fill-in-the-blank
questions from which to choose. In addition, the authors provide distinct questions
to test each of the three components of the text—theory, application, and skill
development.

ExamView® (0-324-78526-7)
All questions from the printed Test Bank are available in ExamView®, an easy-to-use
test-creation program, on the Instructor’s Resource CD.

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Preface

PowerPoint™ (0-324-78525-9)
(Prepared by Rhonda S. Palladi, Georgia State University)
PowerPointTM slides are available on the Instructor’s Resource CD and the product
support Web site for a more flexible and professional presentation in the classroom.

Behavior Model Videos (0-324-78535-6)
To reinforce the development of skills for students, seven Behavior Model Videos
are provided. The videos teach students, step-by-step, how to handle common leadership functions such as giving praise, communicating, coaching, resolving conflict,
delegating, and decision making. Students learn from watching the videos and/or
using them in conjunction with the Skill-Development Exercises. Material in the
text integrates the videos into the chapters. Ideas for using all videos are detailed
in the Instructor’s Manual.

Video Cases (0-324-78535-6)
Accompanying and integrated within the text are 12 Video Cases. These videos show
real businesses dealing with issues that are discussed in the text. These Video Cases
add variety in the classroom presentation and stimulate students to learn about
organizations, teams, and leadership.

Instructor’s Resource CD-ROM (0-324-78538-0)
Get quick access to the Instructor’s Manual with Test Bank, ExamView®, and
PowerPointTM slides from your desktop via one CD-ROM.

Product Support Web Site
The dedicated Leadership Web site, www.cengage.com/management/lussier, offers
broad online support. Log on for downloadable ancillaries and more.

Summary of Key Innovations
Our goal is to make both students and instructors successful in the classroom by
providing learning features that not only teach about leadership but also help students become leaders. Here are the special ways in which this is done:
• Three-pronged approach (theory, application, skill development) in the text-

book, and corresponding assessment of the three areas in the Test Bank
• Unique skill-development materials that build leadership skills for use in stu-

dents’ personal and professional life
• Unique application material to develop critical-thinking skills
• Unsurpassed video package, with 12 Video Cases and 7 Behavior Model Videos
• Flexibility—use any or all of the features that work for you!

Changes to the Fourth Edition
The fourth edition has been thoroughly revised:

• Although we have maintained the individual, team, organizational parts frame-

work, we have added a new chapter. In the third edition, crisis management was
part of Chapter 11 and knowledge management or the learning organization
was part of Chapter 10. We have brought these two topics together to make up
Chapter 12.


Preface

• The number of references has increased from 1,100 to more than 1,400, and

over 80 percent are new references.
• New to this edition are approximately 85 communication skills critical-thinking

questions for class discussion and/or written assignments.
• The skill development exercises now indicate which AACSB learning standard(s)

is developed through the exercise.
• Over half of the chapter opening and end-of-chapter cases are new, and the

remaining cases have been updated.
• Twelve new Video Cases have been added.
• All chapters have new and updated Test Bank questions and PowerPoint slides.

Chapter 1
The “Why Leadership Is Important” subsection has been revised. Two new
key terms—“management to the leadership theory paradigm” and “evidencebased management (EBM)”—have been added. Discussions on “Evidence-Based
Management (EBM)” and “AACSB Learning Standards” have been added to the
“Leadership Theory” subsection. The “Application of Leadership Theory” and

“Leadership Skill Development” subsections have been revised.

Chapter 2
The “Personality Profiles” subsection has been rewritten and now includes current
research relating the Big Five to “Job Performance” and “The Big Five Correlates
with Leadership.” The prior heading “Derailed Leadership Traits” is now discussed
in the “Personality Profiles” subsection.

Chapter 3
A new Applying the Concept has been added.

Chapter 4
The introductions to the “Power” and “Networking” sections have been rewritten.
The introduction and first part of the “Organizational Politics” section has been
reordered and rewritten.

Chapter 5
A new opening case features PepsiCo’s CEO, Indra Nooyi, and the end-of-chapter
case now features ADM, with information on its new CEO, Patricia Woertz.

Chapter 6
The introduction to the “Communication” section has been revised.

Chapter 7
The “Leader–Member Exchange Theory” section has undergone a significant
rewrite. The section entitled “Strategies for Developing Positive Leader–Member
Relations” has been updated and changed to “The Three-Stage Process for
Developing Positive LMX Relations.” The section entitled “Factors that Determine
LMX Quality” has been updated to provide a more in-depth discussion on “Follower
Attributes,” “Leader-Follower Perceptions of Each Other,” and “Situational Factors.”

The “Effective Leader–Follower Feedback” subsection has been moved from the

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Preface

“Followership” section to the “Leader–Member Exchange Theory” section and is
now titled “Effective Leader-Follower Feedback.” Exhibit 7.3 has been modified.

Chapter 8
This chapter has been reorganized and shortened. The “Advantages and
Disadvantages of Teamwork” subsection has been reorganized into bulleted
points so that they stand out. A subsection on the “Virtual Team” has been added.
To eliminate redundancy and repetition, the “Decision Making in Teams” section
has been heavily revised. The “Team versus Individual Decision Making” subsection has been cut. The “Leader-Centered versus Group-Centered Approaches”
subsection is now two separate subsections: “Leader-Centered Decision-Making
Model” and “Team-Centered Decision-Making Model.” The subsection titled
“Factors That Influence Self-Managed Team Effectiveness” has been replaced
with a much shorter and pointed discussion on the “Characteristics of Effective
Self-Managed Teams.”

Chapter 9
The “Behavioral Components of Charisma” subsection has been heavily edited and
updated and retitled to “Differences Between Charismatic and Noncharismatic
Leaders.” The “Locus of Charismatic Leadership” subsection has been moved to the
“Charismatic Leadership” section. Learning Outcome 3 (formerly LO 4—Describe
the four behavioral components of charisma) has been rephrased for clarity and focus

on the purpose of the discussion. A new subsection, “The Effects of Transformational
Leadership,” has been added to the “Transformational Leadership” section.

Chapter 10
Chapter 10 was previously titled “Leadership of Culture and Diversity, and the
Learning Organization.” The chapter has been reorganized to focus on three key
topics: Organizational Culture, Values-Based Leadership, and Diversity. The discussion on learning organizations has been moved to Chapter 12. A new introductory section, “Culture Creation and Sustainability,” has been added. The section
on “Weak and Strong Cultures” has been merged with the section on “Low- and
High-Performance Cultures.” A new subsection, “The Impact of Globalization on
Diversity,” has been added. The section titled “Leadership Initiatives for Achieving
Full Diversity” has been significantly reorganized to focus on three separate topics—
“Obstacles to Achieving Diversity,” “Creating a Culture That Supports Diversity,”
and “Diversity Awareness Training and Leadership Education.”

Chapter 11
This chapter now combines strategic leadership and change management. A new
subsection, “The Role of Leadership in Implementing Change,” has been added.
The “Guidelines for Overcoming Resistance to Change” section has been renamed
“Strategies for Minimizing Resistance to Change.” The subsections in this section
have also been renamed from “People-Oriented Actions” and “Task-Oriented
Actions” to “People-Centered Recommendations for Minimizing Change” and
“Task-Centered Recommendations for Minimizing Change.”

Chapter 12
Chapter 12 is new. In the third edition, “Crisis Leadership” was part of Chapter 11,
and the “Learning Organization and Knowledge Management” was part of
Chapter 10. We have brought these two topics together to make up Chapter 12.


A C K N O W L E D G M E N T S

I’m deeply honored that Judi Neal, Executive Director, Association for Spirit
at Work (), wrote the Appendix, “Leadership and
Spirituality in the Workplace.” I also want to thank my mentor and coauthor of
many publications, Joel Corman, for his advice and encouragement during and
after my graduate education at Suffolk University.
I hope everyone who uses this text enjoys teaching from these materials as I do.
Robert N. Lussier, Springfield College
As it has been with the last three editions of this book, working with Bob Lussier is
always a learning and growth experience that I value very much. He is a good friend
and a mentor. To my students, friends, and colleagues who have encouraged and
supported me morally, I say thanks. And, finally, I give recognition and thanks to
the leadership of my school, the University of Virginia’s College at Wise, for their
support of scholarship of this kind.
Christopher F. Achua, The University of Virginia’s College at Wise
Finally, we both would like to acknowledge the superb assistance we received from
our editorial team. The guidance, support, and professionalism of Joe Sabatino
(executive editor), Clint Kernen (marketing manager), Emily Nesheim (content
project manager), Tippy McIntosh (senior art director), Danny Bolan (media editor), and Ruth Belanger (editorial assistant) were invaluable to the completion of
this project. Special thanks to Leslie Kauffman (developmental editor) for all her
help in updating and upgrading this new fourth edition. We sincerely acknowledge
the reviewers and survey respondents of this and past editions who provided feedback that greatly improved the quality of this book in many areas.

Reviewers
Chris Adalikwu, Concordia College—Selma, Alabama
Kathy Bohley, University of Indianapolis
John Bonosoro, Webster University
Brian W. Bridgeforth, Herzing College
Carl R. Broadhurst, Campbell University
Jon Burch, Trevecca Nazarene University

Debi Cartwright, Truman State University
Don Cassiday, North Park University
Ken Chapman, Webster University
Felipe Chia, Harrisburg Area Community College
Valerie Collins, Sheridan College
George W. Crawford, Clayton College & State University
Joseph Daly, Appalachian State University
Frederick T. Dehner, Rivier College
Melinda Drake, Limestone College
Rex Dumdum, Marywood University
Ray Eldridge, Freed-Hardeman University
Debi Carter-Ford, Wilmington College
Gerald A. Garrity, Anna Maria College
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