Human Resource

Leadership in Organizations

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E i g h t h E d i t i o n

Leadership in Organizations

Gary Yukl University of Albany

State University of New York

ISBN 10: 0-13-277186-1 ISBN 13: 978-0-13-277186-3

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Library of Congress Cataloging-in-Publication Data

Yukl, Gary A. Leadership in organizations / Gary Yukl. — 8th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-13-277186-3 1. Leadership. 2. Decision making. 3. Organization. I. Title. HD57.7.Y85 2013 303.3’4—dc23


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Preface xv

Chapter 1 Introduction: The Nature of Leadership 1

Chapter 2 Nature of Managerial Work 23

Chapter 3 Effective Leadership Behavior 48

Chapter 4 Leading Change and Innovation 76

Chapter 5 Participative Leadership and Empowerment 105

Chapter 6 Leadership Traits and Skills 135

Chapter 7 Contingency Theories and Adaptive Leadership 162

Chapter 8 Power and Influence Tactics 185

Chapter 9 Dyadic Relations and Followers 221

Chapter 10 Leadership in Teams and Decision Groups 247

Chapter 11 Strategic Leadership in Organizations 276

Chapter 12 Charismatic and Transformational Leadership 309

Chapter 13 Ethical, Servant, Spiritual, and Authentic Leadership 340

Chapter 14 Cross-cultural Leadership and Diversity 360

Chapter 15 Developing Leadership Skills 381

Chapter 16 Overview and Integration 404

References 424

Author Index 483

Subject Index 499

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Preface xv


Definitions of Leadership 2

Indicators of Leadership Effectiveness 8

Major Perspectives in Leadership Theory and Research 10

Level of Conceptualization for Leadership Theories 14

Other Bases for Comparing Leadership Theories 18

Organization of the Book 20

Summary 20 Review and Discussion Questions 21


Activity Patterns for Managers 24

Decision Making and Planning by Managers 26

Managerial Roles 29

Demands, Constraints, and Choices 31

Other Determinants of Managerial Work 34

Limitations of the Descriptive Research 39

Guidelines for Managers 40

Summary 44 Review and Discussion Questions 45

CASE: Acme Manufacturing Company 45


Ways for Describing Leadership Behavior 48

Major Types of Leadership Behavior 50

Methods for Studying the Effects of Leader Behavior 53

Effects of Task and Relations Behaviors 56

Planning Work Activities 58

Clarifying Roles and Objectives 59

Monitoring Operations and Performance 61

Supportive Leadership 63

Developing Subordinate Skills 65

x Table of Contents

Providing Praise and Recognition 68

Summary 71 Review and Discussion Questions 72 CASE: Consolidated Products 73 CASE: Air Force Supply Squadron 74


Types of Change in Teams and Organizations 77

Change Processes 78

Reasons for Accepting or Rejecting Change 80

Implementing Change 81

Guidelines for Implementing Change 84

How Visions Influence Change 89

Collective Learning and Innovation 94

Guidelines for Enhancing Learning and Innovation 98

Summary 101 Review and Discussion Questions 102 CASE: Ultimate Office Products 102


Nature of Participative Leadership 106

Research on Effects of Participative Leadership 109

Normative Decision Model 111

Guidelines for Participative Leadership 115

Delegation 118

Guidelines for Delegating 122

Perceived Empowerment 126

Empowerment Programs 128

Summary 130 Review and Discussion Questions 131 CASE: Echo Electronics 132 CASE: Alvis Corporation 133


Introduction to the Trait Approach 135

Personality Traits and Effective Leadership 138

Table of Contents xi

Skills and Effective Leadership 148

Managerial Competencies 151

Situational Relevance of Skills 153

Evaluation of the Trait Approach 156

Guidelines for Managers 157

Summary 159 Review and Discussion Questions 159 CASE: National Products 160


General Description of Contingency Theories 163

Early Contingency Theories 164

Multiple-linkage Model 167

Conceptual Weaknesses in Contingency Theories 173

Research on Contingency Theories 174

Comparative Evaluation of Contingency Theories 175

Guidelines for Adaptive Leadership 177

Guidelines for Managing Immediate Crises 179

Summary 180 Review and Discussion Questions 181 CASE: Foreign Auto Shop 182


Power and Influence Concepts 185

Power Sources 188

How Power Is Gained or Lost 193

Consequences of Power 195

Guidelines for Using Power 197

Proactive Influence Tactics 201

Effectiveness of Proactive Tactics 206

Guidelines for Specific Tactics 210

Power and Influence Behavior 215

Summary 216 Review and Discussion Questions 217 CASE: Restview Hospital 218 CASE: Sporting Goods Store 219

xii Table of Contents


Leader-Member Exchange Theory 222

Leader Attributions About Subordinates 225

Leader Influence on Follower Emotions 227

Guidelines for Correcting Performance Deficiencies 227

Follower Attributions and Implicit Theories 231

Impression Management by Leaders and Followers 234

Follower Contributions to Effective Leadership 236

Self-Management 237

Guidelines for Followers 239

Summary 243 Review and Discussion Questions 243 CASE: Cromwell Electronics 244 CASE: American Financial Corporation 245


Determinants of Team Performance 248

Functional Work Teams 254

Cross-functional Teams 255

Self-managed Work Teams 258

Virtual Teams 261

Guidelines for Leading Teams 262

Leading Decision Groups 265

Guidelines for Leading Meetings 268

Summary 272 Review and Discussion Questions 273 CASE: Southwest Engineering Services 273


Determinants of Organizational Performance 277

How Leaders Influence Organizational Performance 281

Situations Affecting Strategic Leadership 284

Organizational Culture 286

Research on Effects of Strategic Leadership 289

Table of Contents xiii

Executive Teams 291

Emerging Conceptions of Organizational Leadership 294

Two Key Responsibilities for Top Executives 297

Guidelines for Strategic Leadership 299

Summary 302 Review and Discussion Questions 303 CASE: Costco 303 CASE: Turnaround at Nissan 306


Attribution Theory of Charismatic Leadership 310

Self-Concept Theory of Charismatic Leadership 312

Other Conceptions of Charisma 314

Consequences of Charismatic Leadership 317

Transformational Leadership 321

Research on Charismatic and Transformational Leadership 324

Comparison of Charismatic and Transformational Leadership 328

Evaluation of the Theories 330

Guidelines for Inspirational Leadership 332

Summary 335 Review and Discussion Questions 336 CASE: Astro Airlines 336


Conceptions of Ethical Leadership 341

Dilemmas in Assessing Ethical Leadership 342

Determinants and Consequences of Ethical Leadership 344

Theories of Ethical Leadership 347

Evaluation of Ethical Leadership Theories 352

Guidelines for Ethical Leadership 354

Summary 357 Review and Discussion Questions 358 CASE: Unethical Leadership at Enron 358

xiv Table of Contents


Introduction to Cross-cultural Leadership 361

Cultural Value Dimensions and Leadership 365

Evaluation of Cross-cultural Research 368

Gender and Leadership 370

Managing Diversity 376

Summary 378 Review and Discussion Questions 379 CASE: Madison, Jones, and Conklin 379


Leadership Training Programs 382

Learning from Experience 384

Developmental Activities 385

Facilitating Conditions for Leadership Development 396

Systems Perspective on Leadership Development 398

Summary 401 Review and Discussion Questions 402 CASE: Federated Industries 402


Major Findings About Effective Leadership 404

Multilevel Explanatory Processes 408

Toward an Integrating Conceptual Framework 415

Limitations in Leadership Research 417

Concluding Thoughts 421 Review and Discussion Questions 423

References 424

Author Index 483

Subject Index 499



This book is about leadership in organizations. Its primary focus is on managerial leadership as opposed to parliamentary leadership, leadership of social movements, or emergent leadership in informal groups. The book presents a broad survey of theory and research on leadership in for- mal organizations. Topics of special interest are the determinants of leadership effectiveness and how leadership can be improved.

In this 8th edition, the following improvements were made to make the book easier to un- derstand and more useful to most readers:

• Most chapters were revised for clarity and understanding (including Chapters 2 , 3 , 4 , 6 , 7 , 9 , 10 , 12 , 15 , and 16 ).

• The order of Chapters 4 to 12 was modified to improve explanation of related topics. • Several new examples of effective and ineffective leadership were added to Chapters 4 , 6 ,

11 , 13 , and 14 . • More practical guidelines for effective leadership were added to Chapters 3 , 6 , 7 , and 8 . • Several new examples were used in Chapters 3 , 11 , 12 , and 14 to explain how research is

conducted. • Over 100 citations to recent research were added throughout.

The basic structure of most chapters remains the same, but the order of some chapters was changed and a few topics were moved to a different chapter. Citations to relevant recent literature were updated, but given the increasing volume of studies on leadership, the citations are still selec- tive rather than comprehensive. Since the book is not intended to be a history of leadership, it seemed appropriate to reduce the amount of detail about early research programs and old theories that are no longer popular, and focus more closely on what we now know about effective leadership.

The content of the book still reflects a dual concern for theory and practice. I have attempted to satisfy two different audiences with somewhat different preferences. Most academics prefer a book that explains and evaluates major theories and relevant empirical research. They are more interested in how well the research was done, what was found, and what additional research is needed than in the practical applications. Academics tend to be skeptical about the value of pre- scriptions and guidelines for practitioners and consider them premature in the absence of further research. In contrast, most practitioners want some immediate answers about what to do and how to do it in order to be more effective as leaders. They need to deal with the current challenges of their job and cannot wait for decades until the academics resolve their theoretical disputes and ob- tain definitive answers. Practitioners are more interested in finding helpful remedies and prescrip- tions than in finding out how this knowledge was discovered. Readers who desire to improve their leadership effectiveness will find this edition of the book is even more useful than previous editions.

These different preferences are a one of the reasons for the much-lamented gulf between scientists and practitioners in management and industrial-organizational psychology. I believe it is important for managers and administrators to understand the complexity of effective leader- ship, the source of our knowledge about leadership in organizations, and the limitations of this knowledge. Likewise, I believe it is important for academics to think more about how their theories and research can be used to improve the practice of management. Too much of our leadership research is designed to examine narrow, esoteric questions that only interest a few other scholars who publish in the same journals.

xvi Preface

Academics will be pleased to find that major theories are explained and evaluated, findings in empirical research on leadership are summarized, and many references are provided to help readers find sources of additional information about topics of special interest. The field of lead- ership is still in a state of ferment, with many continuing controversies about conceptual and methodological issues. The book addresses these issues whenever feasible. However, the litera- ture review was intended to be incisive, not comprehensive. Rather than detailing an endless series of studies like most handbooks of leadership, the book describes major findings about ef- fective leadership. The current edition reflects significant progress in our understanding of lead- ership since the first edition was published in 1981.

For practitioners and students who desire to become effective managers, I attempted to convey a better appreciation of the complexity of managerial leadership, the importance of hav- ing theoretical knowledge about leadership, and the need to be flexible and pragmatic in applying this knowledge. The current edition provides many guidelines and recommendations for im- proving managerial effectiveness, but it is not a “practitioner’s manual” of simple techniques and secret recipes that guarantee instant success. The purpose of the guidelines is to help the reader understand the practical implications of the leadership theory and research, not to prescribe ex- actly how things must be done by a leader. Most of the guidelines are based on a limited amount of research and they are not infallible or relevant for all situations. Being a flexible, adaptive leader includes determining which guidelines are relevent for each unique situation.

Most chapters have one or two short cases designed to help the reader gain a better under- standing of the theories, concepts, and guidelines presented in the chapter. The cases describe events that occurred in real organizations, but some of the cases were modified to make them more useful for learning basic concepts and effective practices. For most of the cases, the names of organizations and individuals were changed to keep the analysis focused on the events that oc- curred in a defined time period, not on recent events that may involve different leaders and a new context. The cases ask a reader to analyze behavioral processes, identify examples of effective and ineffective behavior, and suggest effective ways to handle the situation that is depicted.

An instructor’s manual is available with detailed analyses of the cases and suggestions on how to use them. The instructor’s manual also includes additional cases, exercises for use in class (e.g., role plays), and some out-of-class activities that help students to understand how they can apply the theory and guidelines. Finally, a test bank is available with multiple-choice items on the major points in each chapter.

The book is widely used in many different countries, and some editions have been translated into other languages, including Chinese, Korean, Indonesian, Spanish, Greek, Croatian, and Swedish. With its focus on effective leadership in organizations, the book is especially relevant for people who expect to become a manager or administrator in the near future, for people who will be responsible for training or coaching leaders, and for people who will be teaching courses or work- shops that include leadership as one of the key topics. The book is appropriate for use as the primary text in an undergraduate or graduate course in leadership. Such courses are found in many different schools or departments, including business, psychology, sociology, educational administration, public administration, and health care administration. The book is on the list of required or recommended readings for students in many doctoral programs in leadership, management, and industrial- organizational psychology. Finally, the book is also useful for practicing managers and consultants who are looking for something more than superficial answers to difficult questions about leadership.

Gary Yukl Albany, New York

June, 2011


Chapter 1

Learning Objectives After studying this chapter, you should be able to:

■ Understand the different ways leadership has been defined. ■ Understand the controversy about differences between leadership and management. ■ Understand why it is so difficult to assess leadership effectiveness. ■ Understand the different indicators used to assess leadership effectiveness. ■ Understand what aspects of leadership have been studied the most during the past 50 years. ■ Understand the organization of this book.

Leadership is a subject that has long excited interest among people. The term connotes images of powerful, dynamic individuals who command victorious armies, direct corporate empires from atop gleaming skyscrapers, or shape the course of nations. The exploits of brave and clever leaders are the essence of many legends and myths. Much of our description of history is the story of military, political, religious, and social leaders who are credited or blamed for important historical events, even though we do not understand very well how the events were caused or how much influence the leader really had. The widespread fascination with leadership may be because it is such a mysterious process, as well as one that touches everyone’s life. Why did certain leaders (e.g., Gandhi, Mohammed, Mao Tse-tung) inspire such intense fervor and dedi- cation? How did certain leaders (e.g., Julius Caesar, Alexander the Great) build great empires? Why did some rather undistinguished people (e.g., Adolf Hitler, Claudius Caesar) rise to posi- tions of great power? Why were certain leaders (e.g., Winston Churchill, Indira Gandhi) sud- denly deposed, despite their apparent power and record of successful accomplishments? Why do some leaders have loyal followers who are willing to sacrifice their lives, whereas other lead- ers are so despised that subordinates conspire to murder them?

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