C H A P T E R

Managers as Leaders

S I X T E E N

16

Leaders in organizations make things happen. What is the difference between being a manager
But what makes leaders different from
and being a leader? Are these terms synonymous?
nonleaders? Whats the most appropriate style Management guru Peter F. Drucker once said,
of leadership? What can you
Management is doing things right; leadership is
do to be seen as a leader? Those are just a few doing the right things. You might begin the study
of the questions well try to answer in this
of Chapter 16 by asking your students for their
chapter. Focus on the following learning
perspectives on these questions and the quotation
outcomes as you read and study
from Dr. Drucker.
this chapter.
The important role that leadership plays in
Learning Outcomes
establishing the culture of an organization is
illustrated in A Managers Dilemma. Vineet
16.1 Define leader and leadership. page
Nayar, CEO of HCL Technologies, is responsible
16.2 Compare and contrast early theories of for leading a global technology company in the
leadership.
worlds largest democracy.
Mirroring the
16.3 Describe the three major contingency
democratic theme of his home country, Mr. Nayar
theories of leadership.
has established policies at HCL that contradict the
16.4 Describe modern views of leadership.
traditional command-and-control dictatorship.
16.5 Discuss contemporary issues affecting Using trouble tickets, anyone at HCL can
leadership.
question the actions of another employee. Mr.
Nayar has also gone to the extreme of volunteering
to share his own weaknesses with all of his
employees. He believes this is a good way to
communicate openness and increase his
accountability to employees. Such steps require an
environment of trust between the companys
leadership and their followers. Students are asked
to put themselves in Mr. Nayars position and think
of ways they can continue to build the level of trust
established at HCL Technologies.
In their study of Chapter 16, students will explore
the evolution of leadership theory and examine
leadership issues in the twenty-first century. As they
learn about leadership styles of effective leaders,
they will discover the importance of striving to
develop traits and to practice behaviors at the
present time. By putting their knowledge of
leadership into action, your students will begin to
acquire the ability to influence others to achieve the
goals of the organizations they will serve in the near
future.

ANNOTATED OUTLINE
INTRODUCTION
The quality of leadership is an important element in an
organizations success, since leaders influence employees to
work together toward the fulfillment of a companys mission and
the achievement of its goals.
1.

2.

WHO ARE LEADERS, AND WHAT IS LEADERSHIP

Certain distinctions can be made between managers and
leaders.
A.
While managers are appointed and have legitimate power
within the organization, a leader is someone who can
influence others and who has managerial authority.
B.
Leadership is the process of influencing a group to
achieve goals.
EARLY LEADERSHIP THEORIES
Researchers began to study leadership in the early twentieth
century and developed behavioral theories that focused on the
leader (trait theories) and how the leader interacts with his or
her group members.
A.
Trait Theories
1. Research in the 1920s and 1930s focused on traits of
the leader, with the intent to isolate characteristics
that might by used to differentiate leaders from
nonleaders.
2.
Identifying a set of traits consistently associated
with the process of leadership proved to be more
successful than one set of traits that would always
differentiate leaders from nonleaders.
3.
Six traits associated with effective leadership are
described in Exhibit 16-1.
B.
Behavioral Theories
1.
Researchers began to hope that a behavioral
theories approach would provide more definitive
information about the nature of leadership than did
trait theories.
2.
Four main leader behavior studies are summarized
in Exhibit 16-2.
a.
University of Iowa Studies. Kurt Lewin and his
associates explored three leadership styles: autocratic,
democratic, and laissez-faire.
b.
The Ohio State Studies identified two important
dimensions of leader behavior: initiating structure and
consideration.
c.
University of Michigan Studies identified two dimensions
of leader behavior: leaders who were employee oriented
and leaders who were production oriented.
3

d.

3.

The Managerial Grid is a two-dimensional grid used to

appraise leadership styles using concern for people and
concern for production as dimensions. (See Exhibit 163)
3.
Predicting leadership success involved more than
isolating a few leader traits or behavior. The lack of
success in attaining consistent results led to a
focus on situational influences.
CONTINGENCY THEORIES OF LEADERSHIP
A.
The Fiedler contingency model, developed by Fred
Fiedler, is a contingency theory proposing that effective
group performance depended upon the proper match
between a leaders style of interacting with his/her
followers and the degree to which the situation allowed
the leader to control and influence.
1.
Fiedler developed the least-preferred coworker
(LPC) questionnaire, which measures whether a
person is task or relationship oriented. This
questionnaire contained 18 pairs of contrasting
adjectives. Respondents were asked to think of all
the coworkers they had ever had and to describe
the person they least preferred to work with, using
the 18 sets of adjectives. Fiedler believed that a
persons
basic
leadership
style
could
be
determined on the basis of their answers.
2.

3.

4.

Fiedler also isolated three situational criteria that

he believed could be manipulated to create the
proper match with the behavioral orientation of the
leader:
a.
Leader-member relations described the
degree of confidence, trust, and respect
subordinates have in their leader.
b.
Task structure described the degree to
which job assignments were formalized and
procedurized.
c.
Position power described the degree of
influence a leader had over power-based
activities such as hiring, firing, discipline,
promotions, and salary increases.
Next, Fiedler used the above variables to evaluate
the situation. He defined eight different situations
in which a leader could find himself or herself. (See
Exhibit 16-4)
The Fiedler model proposes matching an
individuals LPC and an assessment of the three
contingency variables to achieve maximum
leadership effectiveness.

5.

B.

C.

Fiedler concluded that task-oriented leaders tend to

perform better in situations that are either very
favorable or very unfavorable to them.
6.
He concluded that relationship-oriented leaders
perform better in moderately favorable situations.
7.
Fiedler believed that an individuals leadership style
was fixed; he concluded that leader effectiveness
could be improved in only two ways:
a.
Bring in a new leader whose style fits better
to the situation.
b.
Change the situation to fit the leader.
8.
Research has generally supported the validity of
Fiedlers model. However, some drawbacks are
associated with the model.
Hersey and Blanchards Situational Leadership Theory
(SLT) is a leadership contingency theory developed by
Paul Hersey and Ken Blanchard that focuses on followers
readiness.
1.
Hersey and Blanchard propose that successful
leadership is achieved by selecting the right
leadership style that matches the level of the
followers readiness.
2.
Readiness is the extent to which people have the
ability and willingness to accomplish a specific
task.
3.
SLT uses the same leadership dimensions identified
by Fiedler: task and relationship behaviors.
4.
Each of the two leadership dimensions is
considered either high or low and then combined
into four specific leadership styles.
5.
Research efforts to test and support this theory
generally have been disappointing, possibly
because of internal ambiguities or inconsistencies
in the model itself.
Path-goal theory, developed by Robert House, is a
leadership theory that purports that it is the leaders job
to assist his or her followers in attaining their goals and to
provide the direction or support needed to ensure that
their goals are compatible with the overall objectives of
the organization. (See Exhibit 16-5)
1.
Four leadership behaviors were identified by House:
a.
The directive leader lets subordinates know
what is expected of them, schedules work to
be done, and gives specific guidance on how
to accomplish tasks.
b.
The supportive leader is friendly and shows
concern for subordinates needs.
c.
The participative leader consults with
subordinates and uses their suggestions
before making a decision.
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d.
2.

3.

5.

4.

The
achievement-oriented
leader
sets
challenging goals and expects subordinates
to perform at their highest level.
The path-goal theory proposes two classes of
situational or contingency variables that moderate
the leadership behavior-outcome relationship:
a.
Variables in the environment that are outside
of the control of the follower
b.
Variables that are part of the personal
characteristics of the follower
The following hypotheses have evolved from pathgoal theory:
a.
Directive leadership leads to greater
satisfaction when tasks are ambiguous or
stressful than when they are highly
structured and well laid out.
b.
Supportive leadership results in high
employee performance and satisfaction
when subordinates are performing structured
tasks.
c.
Directive
leadership
leads
to
higher
employee
satisfaction
when
there
is
substantive conflict within a work group.
d.
Achievement-oriented leadership increases
subordinates
expectancies that effort will lead to high
performance when tasks are ambiguously
structured.
e.
Subordinates with an external locus of
control will be more satisfied with a directive
style.
f.
Achievement-oriented
leadership
will
increase subordinates expectations that
effort will lead to high performance when
tasks are ambiguously structured.
Although not every research finding has been
positive, the majority of the evidence supports the
following logic underlying path-goal theory:
a.
Employee performance and satisfaction are
likely to be positively influenced when the
leader compensates for shortcomings in
either the employee or the work setting.
b.
However, if the leader spends time
explaining tasks when those tasks are
already clear or when the employee has the
ability and experience to handle them, the
employee is likely to see such behavior as
redundant or even insulting.

CONTEMPORARY VIEWS ON LEADERSHIP

6

The most current approaches to looking at leadership are

discussed in this section of the text.
A.
Transformational-Transactional Leadership
The research thus far discussed has described the transactional
leader. What is the difference between transactional and
transformational leaders?
1.
Transactional leaders are leaders who lead
primarily
by
using
social
exchanges
(or
transactions). Transformational leaders are
leaders who stimulate and inspire (transform)
followers to achieve extraordinary outcomes.
Evidence
supporting
the
superiority
of
transformational leadership over transactional
leadership is overwhelmingly impressive.
2.
A charismatic leader is an enthusiastic, selfconfident leader whose personality and actions
influence people to behave in certain ways.
a. Five personal characteristics of charismatic
leaders have been identified. Charismatic
leaders have a vision, are able to articulate
that vision, are willing to take risks to
achieve that vision, are sensitive to both
environmental constraints and follower
needs, and exhibit behaviors that are out of
the ordinary
b. An increasing amount of research shows
impressive correlations between charismatic
leadership and high performance and
satisfaction among followers. Most experts
think that individuals can be trained to
exhibit charismatic behaviors.
c. Charismatic leadership may not always be
needed to achieve high levels of employee
performance. This type of leadership may be
most appropriate when an employees job
has a significant amount of ideological
content.
Visionary leadership is the ability to create and
articulate a realistic, credible, and attractive vision
of the future that improves upon the present
situation.
a. If the vision is properly selected and
implemented, it can energize individuals to use
their skills, talents, and resources to fulfill the
vision.
b. A vision
differs
from
other forms
of
organizational direction in that it uses
compelling imagery, taps into individuals
emotions and energy, and creates the
7

enthusiasm that people need to bring energy

and commitment to the workplace.
c. The key properties of a vision are that it has
inspirational
possibilities
that
are
value
centered, are realizable, have superior imagery,
and are well articulated.
d. What skills do visionary leaders have?
1. The ability to explain the vision to others
2. The ability to express the vision, not only
verbally, but also through behavior
3. The ability to extend or apply the vision
to different leadership contexts
3.
Team Leadership. As work teams become more
prevalent in the workplace, the role of team leader
becomes increasingly important.
a. The existence of work teams necessitates that
managers learn how to become effective team
leaders.
b. Skillful team leaders master the difficult
balancing act of knowing when to leave their
teams alone and when to become involved.
c. A team leader has two priorities:
1. Managing the teams external boundaries
2. Facilitating the team process
d. These two priorities can be broken down into
four specific leadership roles (see Exhibit 166):
1. Liaisons with external constituencies
2. Troubleshooters
3. Conflict managers
4. Coaches
5.

LEADERSHIP ISSUES IN THE TWENTY-FIRST CENTURY

The concept of leadership is continually being refined. This
section of the text examines several contemporary issues in
leadership.
A.
Managing Power
Power is the capacity of a leader to influence work actions
or decisions. Because leaders must influence others, we
need to look at how leaders acquire power. French and
Raven identified five sources or bases of power.
1.
Legitimate power is the power a leader has as a
result of his or her position in the organization.
2.
Coercive power is the power a leader has
because of his or her ability to punish or control.
3.
Reward power is the power a leader has because
of his or her ability to give positive benefits or
rewards.
4.
Expert power is influence that is based on
expertise, special skills, or knowledge.
8

5.
6.

Referent power is power that arises because of a

persons desirable resources or personal traits.
Most effective leaders rely on several different
bases of power.

Thinking Critically About

Ethics

Can We Be Friends?

There are many different ways that managers use power in organizations, but what
happens when the use of that power crosses over into an employees private life?
Your students are asked to consider how they would respond if a manager asked to be
a friend on your facebook or myspace account. You may decide to have students act
out this situation, through role play.
First ask the participants to think about what type of power and influence is at work in
this situation. Then ask the students who observe the role play to identify the type of
power and influence being demonstrated. You might encourage students who are
observing the demonstration to suggest possible resolutions to the problem.
An extension of this exercise would be to ask students how a situation such as this
could develop into a case of sexual harassment. What types of power and influence
would be demonstrated in this type of situation?

B.

Developing Trust
1.
Credibility is the degree to which followers
perceive someone as honest, competent, and able
to inspire.
2.
Trust is the belief in the integrity, character, and
ability of a leader.
3.
Research has identified five dimensions that make
up the concept of trust:
a.
Integrity (honesty and truthfulness)
b.
Competence (technical and interpersonal
knowledge and skills)
c.
Consistency (reliability, predictability, and
good judgment in handling situations)
d.
Loyalty (willingness to protect a person,
physically and emotionally)
e.
Openness (willingness to share ideas and
information freely)
4.
Given the fact that many organizations have moved
to self-managed work teams, establishing trust in
the leadership is critical.
5.
Following are eight suggestions for leaders to use
in building trust (see Exhibit 16-7):
a.
Practice openness
b.
Be fair
c.
Speak your feelings
d.
Tell the truth
9

C.

D.

E.

e.
Show consistency
f.
Fulfill your promises
g.
Maintain confidences
h.
Demonstrate competence
Empowering Employees
Another method of leadership increasingly used by
contemporary managers is the empowerment of
employees.
1.
The increased use of empowerment is being driven
by two considerations:
a.
Quick decisions often need to be made by
the individuals who are most knowledgeable
about particular issues.
b.
Organizational
downsizing
has
given
managers larger spans of control, and in
order to cope, managers are turning to
employee empowerment.
2.
Empowerment should not be considered a universal
panacea in problem solving; such a perspective
would be an anti-contingency approach. Rather,
empowerment should be used when a workforce
has the knowledge, skills, and experience to do
jobs competently and when employees seek
autonomy and possess an internal locus of control.
Leading Across Cultures
National culture is an important situational variable in
selecting the most appropriate style.
1.
Findings from research are provided in Exhibit 168).
2.
The GLOBE research program (introduced in
Chapter Four) identifies universal aspects, including
vision, foresight, trustworthiness, dynamism,
positiveness, ability to provide encouragement, and
proactiveness.
Understanding
Gender Differences and Leadership
The contemporary leadership issue of gender and
leadership sometimes involves controversy. What, if any,
differences exist between male and female leaders and
what implications might such differences have?
1.
Evidence generally has found that males and
females do use different leadership styles.
a.
Women tend to adopt a more democratic or
participative style and a less autocratic or
directive style than do men.
b.
Women are more likely to encourage
participation,
to
share
power
and
information, and to attempt to enhance
followers self-worth.
c.
Men are more likely to use a directive,
command-and-control style.
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d.

F.

Men rely on the formal authority of their

position for their influence base.
e.
Men use transactional leadership, handing
out rewards for good work and punishment
for bad.
2.
Is different better? The best managers (leaders)
listen, motivate, and provide support to their
people. They inspire and influence, rather than
control. Generally speaking, women seem to
perform these behaviors better than do men. (See
Exhibit 16-9 for a summary.)
3.
The effectiveness of a particular leadership style
depends upon the situation.
Becoming an Effective Leader
1.
Leadership training takes many different forms,
however, not everyone has what it takes to make a
great leader. Depending on the type of training,
leaders may learn skills such as vision creation,
trust building and mentoring.
2.
Substitutes for Leadership . Certain individual, job,
and organizational variables can act as substitutes
for leadership, negating the importance of having
an individual leader. Possible variables of this type
include characteristics of followers (e.g.,
experience, training, professional orientation, or
the need to be independent).
a. Routine, unambiguous, or intrinsically
satisfying jobs may require little leadership.
b. Cohesive work groups, explicit formal goals,
and/or rigid rules and procedures may serve
as substitutes for leadership.

Answers to Thinking About Management

Issues

1.

What types of power are available to you? Which ones do you

use most? Why?
Student responses to this question will vary. Encourage students
to use the five types of power (legitimate, coercive, reward,
expert, and referent) and descriptions in their text as they
consider ways they use power.

2.

Do you think that most managers in real life use a contingency

approach to increase their leadership effectiveness? Discuss.
As managers participate in mentoring, development training,
networking, and on-the-job experience, they should become
more comfortable and adept in their use of a contingency
approach
to
increase
their
leadership
effectiveness.
11

Organizations that offer leadership training often include

contingency approaches. Ask your students to give examples to
illustrate how their managers in the workplace use a
contingency approach for successful leadership.
3.

If you were to ask people why a given individual is a leader, they

tend to describe the persons in terms such as competent,
consistent, self-assured, inspiring a shared vision, and
enthusiastic. How do these descriptions fit in with leadership
concepts presented in the chapter?
In describing the characteristics and behaviors of a leader, many
individuals tend to use concepts included in charismatic,
visionary, and team leadership approaches. For example,
inspiring a shared vision is a quality of charismatic and visionary
leadership.

4.

What kinds of campus activities could a full-time college student

do that
might lead to the perception that he or she is a
charismatic leader? In pursuing those activities, what might the
student do to enhance this perception of being charismatic?
A full-time college student that could contribute to the
perception that he or she is a charismatic leader would likely
stem from the students involvement in campus organizations or
team activities, such as sports. To further enhance this
perception, the student might champion a cause in which he or
she strongly believes. By choosing and learning from a mentor
who displays characteristics of a charismatic leader, students
can enhance their own charisma and leadership abilities.

5.

Do you think trust evolves out of an individuals personal

characteristics or out of specific situations? Explain.
Followers seek leaders who have a high degree of credibility.
Trust in a leader might be described as belief in the integrity,
character, and ability of the individual who influences others.
Integrity and character are personal characteristics that can be
developed by an individual. Research has also identified five
dimensions that make up the concept of trust; these
dimensions, as well, are personal characteristics, reinforcing the
truism that trust must begin with the personal characteristics of
an individual. However, how the individual leads in particular
situations will increase or diminish the trust that followers have
initially placed in the leader.

6.

A recent study showed that CEOs of successful companies have hard-nosed

personal traits, such as persistence, efficiency, attention to detail, and a
tendency to set high standards, rather than softer strengths, such as teamwork,
enthusiasm, and flexibility.69 What do you think of this? Are you surprised?
How would you explain this in light of the leadership theories discussed in this
chapter?
12

The factors listed above are traditional behaviors often associated with
organizational leaders. While these qualities are important, todays leaders have
learned to consider the well-being of their employees as a priority. While students
may address several of the contingency theories, the idea that employees need to
show both task and people oriented behavior flows from the behavioral theory of
leadership addressed earlier in this chapter.
7.

Do followers make a difference in whether a leader is effective? Discuss.

It is the leaders ability to get the follower to carry out the goals of the
organization that ultimately determines a leaders success. However, if the
followers are not skilled or do not have the appropriate knowledge to accomplish
the task then the effectiveness of the leader suffers. You may want to use the
example of a coach who has lost key players due to an unexpected injuries. If this
player is taken out of the game, then the team may lose the game regardless of the
quality of the coaching.

8.

How can organizations develop effective leaders?

Organizations have at their disposal a variety of training techniques for developing
leaders.
These programs vary in length, skills developed, and learning
environment. It may be useful to have students perform an internet search of the
leadership training programs available. Discuss with students the usefulness of
these programs in light of the theories presented in the text. Do these programs
work best for developing leaders in all situations, or will some programs work best
for certain situations? You may also want to address this issue from a trait theory
perspective? Do some employees have what it takes and training can help them
develop to their potential while others never had it and never will.

Your Turn to be a Manager

Think of the different organizations to which you belong. Note the different styles
of leadership used by the leaders in those organizations. Write a paper describing
these individuals styles of leading (no names, please) and evaluate the styles being
used.

Write the names of three people you consider to be

effective leaders. Make a bulleted list of the
characteristics these individuals exhibit that you think
make them effective leaders.

*To be submitted on Thursday, Sept. 12. Use one half of yellow

paper for this assignment.

Interview three managers about what they think it takes

to be a good leader. Write up your findings in a report
and be prepared to present it in class.
13

*Provide powerpoint presentation to report your output.

Format: Name of Manager and Company, write ups of what
have transpired during your interview.

Think about the times that you have had to lead. Describe what you think your
own personal leadership style is. What could you do to improve your leadership
style? Come up with an action plan of steps that you can take. Put all this
information into a brief paper.

Managers say that increasingly they must use influence to get things done. Do
some research on the art of persuasion. Make a bulleted list of suggestions that
you find on how to improve your skills at influencing others.

Can leadership skills be taught in multiplayer online games? Some people think so.
Select two online fantasy games and describe (1) the basics of the gamewhat its
based on and how its played; (2) how players advance in the game; and (3) what
leadership skills the game might help develop and how.

Heres a list of leadership skills: building employee communities, building teams,

coaching and motivating others, communicating with impact, confidence and
energy, leading by example, leading change, making decisions, providing direction
and focus, and valuing diversity. Choose two of these skills and develop a training
exercise that will help develop or improve each of them.

Steves and Marys recommended readings: Stephen M. R. Covey with Rebecca

Merrell, The Speed of Trust: The One Thing That Changes Everything (The Free
Press, 2006); Nancy S. Ahlrichs, Manager of Choice (Davies-Black Publishing,
2003); John H. Zenger and Joseph Folkman, The Extraordinary Leader: Turning
Good Managers into Great Leaders (McGraw-Hill, 2002); Robert H. Rosen,
Leading People (Viking Penguin Publishing, 1996); Margaret J. Wheatley,
Leadership and the New Science (Berrett- Koehler Publishers, 1994); Max
DePree, Leadership Jazz (Dell Publishing, 1992); and Max DePree, Leadership Is
an Art (Dell Publishing, 1989).

Select one of the topics from the section Leadership Issues in the Twenty-First
Century. Do some additional research on the topic and put your findings in a
bulleted list. Be prepared to share this in class. Be sure to cite your sources.

There are two relevant leadership skill-building modules on mymanagementlab:

Choosing an Effective Leadership Style and Coaching. Complete these modules.
Your professor will tell you what to do with them.

In your own words, write down three things you learned in this chapter about
being a good manager.

Self-knowledge can be a powerful learning tool. Go to mymanagementlab and

complete these self-assessment exercises: Whats My Leadership Style? How
Charismatic Am I? Do I Trust Others? Do Others See Me as Trusting? How Good
Am I at Building and Leading a Team? Using the results of your assessments,
14

identify personal strengths and weaknesses. What will you do to reinforce your
strengths and improve your weaknesses?
WORKING
Exercise

TOGETHERTeam-Based

Students, in small groups, are asked to develop role-playing situations

to illustrate how they would deliver bad news about meeting
production goals to a work group they are leading.
Other role-playing scenarios might include the following situations:
n

n
n

Following the retirement of a highly successful production

manager in your company, you were recently selected to
become the new production manager. What approaches would
you use in assuming this new role, considering that you are
replacing a very successful leader? For instance, what would
your script be for the first staff meeting?
How would you inform your employees that a significant layoff is
being predicted?
How would you encourage your followers to increase production
in order to avoid a layoff?

Answers to Case Application Questions

Radical Leadership
1.

Describe Ricardo Semlers leadership style. What do you think

the advantages and drawbacks of his style might be?
Ask your students to select two leadership models that would
help to portray Ricardo Semlers leadership style. In his own
words, Semler is the leading proponent and most tireless
evangelist of participative management.
He places little
emphasis on traditional features of corporate management as
he avoids written rules, policy manuals, dress codes, and
organization charts. Semler empowers employees to make
managerial decisions, including strategic plans and leadership
positions for the company.
Challenges incurred in implementing Semlers leadership style
might occur in the recruitment of qualified individuals who are a
good fit for this organizational culture and providing the training
and development needed for employees in this type of work
environment.

2.

What challenges might a radically hands-off leader face? How

could those challenges be addressed?
15

A manager who adopts a radically hands-off leadership style

faces challenges as well as opportunities for managerial
success. In using this style, a leader places a great amount of
trust in the ability of employees and in their dedication to the
achievement of organizational goals. The efforts required to
reach these goals may require a willingness by employees to
go the extra mile and to show a high degree of devotion to the
fulfillment of the leaders vision for the company.
A leader who uses the participative management approach
should support training and development programs for
employees in order to equip them for empowerment and
leadership roles. This leader must be an individual who gives
credit to the employees who are responsible for the successes of
the organization.
Moreover, a leader who adopts the participative management
approach should recruit and train for diversity. The implications
for training involve emphasis on situational and contingency
models. Managers must be willing to seek employees who have
strengths that are lacking in management. By hiring employees
who supply needed qualities and skills, managers are gaining
employees whose strengths complement the skills and talents
already present in the organization.
3.

How could future leaders be identified in this organization?

Would leadership training be important to this organization?
Discuss.
By exercising the responsibility and authority already given to
them by management, employees of Semler are preparing to be
future leaders of the organization in their work every day. These
employees are truly learning by doingone of the most effective
methods of training. By empowering his employees, Ricardo
Semler enjoys the opportunity to observe their skills, dedication,
and leadership qualities firsthand. Thus, his ability to identify
potential leaders is greatly enhanced by his leadership style.

4.

What could other businesses learn from Ricardo Semlers

approach to leadership?
Managers in other businesses could learn about the benefits of
empowering and equipping employees to make major
managerial contributions to an organization. By carefully
observing and studying Semlers leadership style, other leaders
could gain insight into the value of establishing trust between
employees and management and demonstrating confidence in
employees ability to assume leadership roles.
ADDITIONAL CHAPTER INFORMATION

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An excellent topic for discussion is the failure of leadership that has

been witnessed in many corporations in recent years. Have students
gather articles on Enron, WorldCom, Andersen Consulting, Global
Crossing, and Tyco. You may want to ask students to find information
about the present situation of the former leaders of these companies.
Another springboard for discussion on leadership is to have students
brainstorm to compile a list of leaders and write the list on the board,
where it can be easily seen by the entire class. Then ask your
students to identify the common characteristics that contribute to the
success of all of these leaders. They will discover that no single,
comprehensive list can be developed. This activity is an effective way
to introduce the study of leadership trait theories.

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