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Introduction
The study of leadership has been an important and central part of the literature
on management and organization behavior for several decades. The books, arti-
cles, and papers on the subject now number in the several thousands, and the pub-
lication of new manuscripts continues at a high rate. The field is truly an inter-
disciplinary one. Publications on leadership can be found in a large variety of
professional and practitioner journals in several disciplines, including manage-
ment, psychology, sociology, political science, public administration, and edu-
cational administration. The Leadership Quarterly, a new joumal devoted exclu-
sively to leadership, was initiated in 1989.
The literature includes periodic review articles on leadership, such as those by
House and Baetz (1979), Jago (1982), and Van Fleet and Yukl (1986). Books that
review leadership theory and research include Leadership in Organizations by
Yukl (1981, 1989) and The Handbook of Leadership by Bass (1981). A revised
edition of the latter book is expected to appear in 1989. Leading-edge papers on
advanced aspects of leadership theory, methodology, and research can be found
in the published leadership symposia edited by Jerry Hunt and his colleagues
(e.g.. Hunt, Baliga, Dachler, & Schriesheim, 1988; Hunt, Hosking, Schriesh-
eim, & Stewart, 1984; Hunt, Sekaran, & Schriesheim, 1982). Practitioner-ori-
Address all correspondence to Gary Yukl, Department of Management, State University of New York. Al-
bany, NY 12222.
251
252 GARY YUKL
Definitions of Leadership
Researchers usually define leadership according to their individual perspective
and the aspect of the phenomenon of most interest to them. After a comprehen-
sive review of the leadership literature, Stogdill (1974, p. 259) concluded that
"there are almost as many definitions of leadership as there are persons who have
attempted to define the concept." Leadership has been'defined in terms of indi-
vidual traits, leader behavior, interaction pattems, role relationships, follower
perceptions, infiuence over followers, infiuence on task goals, and influence on
organizational culture. Most definitions of leadership involve an infiuence proc-
ess, but the numerous definitions of leadership that have been proposed appear to
have little else in common. They differ in many respects, including important dif-
ferences in who exerts infiuence, the purpose of infiuence attempts, and the man-
ner in which infiuence is exerted. The differences are not just a case of scholarly
nitpicking. They refiect deep disagreement about identification of leaders and
leadership processes. Differences between researchers in their conception of
leadership lead to differences in the choice of phenomena to investigate and to dif-
ferences in interpretation of the results.
One major controversy involves the issue of leadership as a distinct phenome-
non. Some theorists believe that leadership is no different from the social influ-
ence processes occurring among all members of a group, and these theorists view
leadership as a collective process shared among the members. The opposing view
is that all groups have role specialization, including a specialized leadership role.
This view assumes that there is usually one person who has much more infiuence
than other members and who carries out some leadership functions that cannot be
shared without jeopardizing the success of the group's mission. As we will see
later in this review, the relative popularity of these two perspectives on leadership
may be tilting toward increased emphasis on shared leadership.
Some theorists would limit the definition of leadership to an exercise of infiu-
ence resulting in enthusiastic commitment by followers, as opposed to indifferent
compliance or reluctant obedience. Proponents of this view argue that a person
who uses authority and control over rewards and punishments to manipulate or
coerce followers is not really "leading'' them. The opposing view is that this def-
inition is too restrictive, because it excludes infiuence processes that are impor-
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 253
two forms of power are not mutually exclusive. Control over infonnation may en-
hance a person's relative expertise in comparison to others who lack the infor-
mation. As research has progressed, it has become more evident that an interac-
tion model (i.e., person x position) is likely to prove more useful than an
additive model (i.e., person + position) for explaining why some people have
more power than others. McCall (1978) proposed that the combination of being
in the right place at the right time with the right resources gives a person power.
It is not enough for a person to have expertise or infonnation; there must also be
the opportunity to use expertise to solve problems for others who are dependent
upon the person, or to use exclusive information to infiuence decisions.
The power typology proposed by French and Raven (1959) is also widely ac-
cepted. Most research on this power typology has floundered on the issue of
measurement, which is complicated by the fact that potential infiuence is largely
a matter of perceptions. Power depends on the target person's perceptions of the
agent's attributes, resources, and credibility. The questionnaires used in leader-
ship research to measure reward, coercive, expert, legitimate, and referent power
are deficient in several respects (Podsakoff & Schriesheim, 1985; Yukl, 1989).
Until this measurement problem is solved, not much progress is likely in research
on the implications of different types of power for leader effectiveness. It is also
unclear whether the French and Raven typology adequately depicts all of the dif-
ferent types of power now recognized by researchers.
2. How is power acquired and lost by leaders? The study of reciprocal infiu-
ence processes between leader and followers has been an important line of re-
search for leaming about emergent leadership and the acquisition of power by
leaders. Social Exchange Theory (Hollander, 1978) describes the process by
which greater status and expert power are accorded someone who demonstrates
loyalty to the group and competence in solving problems and making decisions.
Innovative proposals are a source of increased expert power and when successful,
but leaders lose power if failure occurs and it is attributed to poor judgment, ir-
responsibility, or pursuit of self-interest at the expense of the group. Research on
exchange theory is very limited, but generally supportive. Research on charis-
matic leadership provides additional evidence about the acquisition of infiuence,
and it is generally consistent with the research on expert power. Demonstration of
exceptional expertise may result in attributions of charisma by subordinates if the
leader implements innovative strategies that involve high risk of personal loss
(Conger & Kanungo, 1988).
The manner in which characteristics of the person and position combine to de-
termine relative power is described by Strategic Contingencies Theory (Brass,
1984, 1985; Hickson, Hinings, Lee, Schneck, & Pennings, 1971; Salancik &
Pfeffer, 1977). The amount of power gained by demonstrating competence in
solving problems depends on how important the problems are for the operations
of other organizational units and for the overall performance of the organization.
Acquiring and maintaining power also depend on the extent to which the person
has unique skills and resources that are difficult to replace.
3. How is power exercised by effective leaders? Research on the use of different
forms of power by leaders suggests that effective leaders rely more on personal
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256 GARY YUKL
On the other hand, too much position power entails the risk that the leader will
be tempted to rely on it exclusively and neglect alternative forms of influence,
such as persuasion, participation, and inspirational appeals. This path leads to re-
sentment and rebellion. It is a common theme in literature that great power can
corrupt a leader to misuse it (McClelland, 1975; Zaleznik, 1970). Some evidence
on this question is provided in laboratory research by Kipnis (1972), who found
that leaders with greater reward power used it more to influence subordinates, de-
valued the worth of subordinates, maintained more social distance from subor-
dinates, and attributed subordinate effort to leader use of power rather than to
subordinate motivation. Thus, the optimal amount of power may be a moderate
amount, and it is desirable to have some organizational constraints on a leader's
use of power (Yukl, 1981).
Behavior Approach
The behavior approach emphasizes what leaders and managers actually do on
the job, and the relationship of behavior to managerial effectiveness. Major re-
search questions and findings are reviewed briefly.
1. What is the nature of managerial work? Research on the nature of manage-
rial work relies mostly on descriptive methods such as direct observation, diaries,
and anecdotes obtained from interviews. One line of behavior research has been
concemed with discovering what activities are typical of managerial work. Re-
views ofthe earlier research have been published by Mintzberg (1973), McCall,
Morrison, and Hannan (1978), and McCall and Segrist (1980). More recent stud-
ies include those by Gabarro (1985), Kanter (1983), Kotter (1982), Kurke and
Aldrich (1983), and Kaplan (1986). The typical pattem of managerial activity re-
flects the dilemmas faced by most managers. Relevant information exists only in
the heads of people who are widely scattered within and outside of the organi-
zation. Managers need to make decisions based on information that is both in-
complete and overwhelming, and they require cooperation from many people
over whom they have no formal authority. The descriptive research shows that
managerial work is inherently hectic, varied, fragmented, reactive, and disor-
derly. Many activities involve brief oral interactions that provide an opportunity
to obtain relevant up-to-date infonnation, discover problems, and influence peo-
ple to implement plans. Many interactions involve people other than subordi-
nates, such as lateral peers, superiors, and outsiders.
Descriptive research on managerial decision making and problem solving pro-
vides additional insights into the nature of managerial work (Cohen & March,
1986; McCall, & Kaplan, 1985; Mintzberg & McHugh, 1985; Quinn, 1980;
Schweiger, Anderson & Locke, 1985; Simon, 1987). Decision processes are
highly political, and most planning is informal and adaptive to changing condi-
tions. Effective managers develop a mental agenda of short- and long-term objec-
tives and strategies (Kotter, 1982). The network of relationships inside and out-
side of the manager's unit is used to implement plans and strategies. For plans
involving significant innovations or affecting the distribution of power and re-
sources, the manager must forge a coalition of supporters and sponsors, which
may involve expanding the network of contacts and allies (Kanter, 1983; Kaplan,
1984). Effective managers are able to recognize relationships among the streams
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
258 GARY YUKL
most relevant components of managerial motivation were desire for power, desire
to compete with peers, and a positive attitude toward authority figures. Research
by McClelland and other investigators (e.g., McClelland & Boyatzis, 1982;
McClelland & Bumham, 1976; Stahl, 1983) found evidence that effective leaders
in large, hierarchical organizations tend to have a strong need for power, a fairly
strong need for achievement, and a relatively weaker need for affiliation. Effec-
tive managers have a socialized power orientation due to high emotional maturity.
They are more interested in building up the organization and empowering others
than in personal aggrandizement or domination of others. The optimal pattem of
managerial motivation is somewhat different for entrepreneurs, who tend to have
a dominant need for achievement and a strong need for independence.
2. What skills are related to leader effectiveness? Skills are another promising
predictor of leader effectiveness. Technical skills, conceptual skills, and inter-
personal skills are necessary for most leadership roles (Bass, 1981; Hosking &
Morley, 1988; Katz, 1955; Mann, 1965). However, the relative importance of the
three types of skills varies greatly from situation to situation. In addition, the op-
timal mix of specific component skills and the nature of the technical expertise
required by a leader vary greatly from one type of organization to another (Boy-
atzis, 1982; Kotter, 1982; Shetty & Peery, 1976). Even for the same type of or-
ganization, the optimal pattem of traits and skills may vary depending upon the
prevailing business strategy (Gupta & Govindarajan, 1984; Szilagyi &
Schweiger, 1984). Some specific skills such as analytical ability, persuasiveness,
speaking ability, memory for details, empathy, tact, and charm are probably use-
ful in all leadership positions.
3. How do traits interact to influence leader effectiveness? One of the key prin-
ciples coming out of the trait approach is the idea of balance. In some cases bal-
ance means a moderate amount of some trait such as need for achievement, need
for affiliation, self-confidence, risk taking, initiative, decisiveness, and asser-
tiveness, rather than either a very low or a very high amount of the trait. In other
cases, balance means tempering one trait with another, such as tempering a high
need for power with the emotional maturity required to ensure that subordinates
are empowered rather than dominated. Sometimes balance must be achieved be-
tween competing values (Quinn & Rohrbaugh, 1983). Concem for the task must
be balanced against concem for people (Blake & Mouton, 1982). Concem for a
leader's own needs must be balanced against concem for organizational needs.
Concem for the needs of subordinates must be balanced against concem for the
needs of peers, superiors, and clients. Desire for change and innovation must be
balanced against need for continuity and predictability. Balance is not only a
question of individual leaders. In some cases balance involves different leaders in
a management team who have complementary attributes that compensate for each
other's weaknesses and enhance each other's strengths (Bradford & Cohen,
1984).
Situational Approach
The situational approach emphasizes the importance of contextual factors such
as the leader's authority and discretion, the nature of the work performed by the
leader's unit, the attributes of subordinates, and the nature of the extemal envi-
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
262 GARY YUKL
ronment. This research and theory falls into two major subcategories. One line of
research treats leader behavior as a dependent variable: researchers seek to dis-
cover how the situation influences behavior and how much variation occurs in
managerial behavior across different types of managerial positions. The other,
line of research seeks to discover how the situation moderates the relationship be-
tween leader attributes or behavior and leader effectiveness.
/. What aspects ofthe situation influence leader behavior? One theory for de-
scribing how the situation influences managerial behavior is Role Theory (Kahn,
Wolfe, Quinn, & Snoelk, 1964). The role expectations from superiors, peers,
subordinates, and outsiders are a major influence on a leader's behavior. Leaders
adapt their behavior to role requirements, constraints, and demands of the lead-
ership situation. Other theories have identified key aspects of the situation that
create demands and constraints on a manager. According to Stewart's (1976,
1982) Demands-Constraints-Choices Theory, the pattern of interactions and how
much time is spent with subordinates, peers, superiors, and outsiders depends on
the nature of the work, and whether it is self-generating or reactive, repetitive or
variable, uncertain or predictable, fragmented or sustained, hurried or unhurried.
Another theory is the Multiple Influence Model (Hunt & Osbom, 1982; Osbom
& Hunt, 1975), which emphasizes the infiuence of macro-level situational deter-
minants such as level of authority in the organization, size of work unit, function
of work unit, technology, centralization of authority, lateral interdependence, and
forces in the external environment. Research on situational determinants is still
very limited, and results are difficult to interpret due to confounding among dif-
ferent aspects of the situation. Nevertheless, it is evident that leader behavior is
strongly infiuenced by the situation. Some recent studies of situational effects on
managerial behavior include the following: Fry, Kerr, and Lee (1988); Hammer
and Turk (1987); Kaplan (1986); Leana (1986); Luthans, Rosencrantz, and Hen-
nessey (1985); Mulder, deJong, Koppelaar, and Verhage (1986); Pavett and Lau
(1983); Podsakoff (1982), Sims and Manz, 1984; Yukl and Carrier (1986).
2. How much discretion do leaders have and how is it related to effectiveness?
Despite the situational demands and pressures, managers have choices in what
aspects of the job to emphasize, how to allocate time, and with whom to interact
(Kotter, 1982; Stewart, 1982). Managerial effectiveness depends in part on how
well a manager understands demands and constraints, copes with demands, over-
comes constraints, and recognizes opportunities. Effective leaders are able to
reconcile the role confiicts caused by incompatible role expectations from differ-
ent role senders, and they take advantage of role ambiguity as an opportunity for
discretionary action. They seek to expand their range of choices, exploit oppor-
tunities, and shape the impressions formed by others about their competence and
expertise (Kahn etal. 1964; Kieser, 1984; Pfeffer & Salancik, 1975; Tsui, 1984;
Stewart, 1982). Over the long run, effective leaders act to modify the situation to
increase their discretion (Yukl, 1981).
3. How do leaders interpret information about subordinate performance? At-
tribution Theory uses cognitive processes to explain how leaders interpret per-
formance information, especially evidence of substandard performance. Green &
Mitchell (1979) described the reaction of a manager to poor performance by a
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 263
Path-Goal Theory
Path-Goal Theory (Evans, 1970; House, 1971; House & Mitchell, 1974) pro-
poses that leaders motivate higher performance by acting in ways that influence
subordinates to believe valued outcomes can be attained by making a serious ef-
fort. Aspects of the situation such as the nature of the task, the work environ-
ment, and subordinate attributes determine the optimal amount of each type of
leader behavior for improving subordinate satisfaction and performance. Reviews
of this research (Evans, 1986;Indvik, 1986; 1988) find that some studies support
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
264 GARY YUKL
tionship between a leader trait called LPC and leader effectiveness. The model
specifies that high LPC leaders are more effective in some situations and low
LPC leaders are more effective in other situations. The interpretation of LPC
scores has changed several times over the years, and after more than 20 years of
research, the meaning is still not clear. Fiedler regards LPC as an indicator of a
leader's motive hierarchy, with affiliation needs dominant for high LPC leaders
and task-achievement needs dominant for low LPC leaders. Rice (1978) proposed
that research on LPC favors a value-attitude interpretation such that low LPC
leaders value task success whereas high LPC leaders value interpersonal success.
A large number of studies have been conducted to test the model. Reviews by
Strube and Garcia (1981) and Peters, Hartke, and Pohlmann (1985) conclude that
the research tends to support the model, although not for every octant and not as
strongly for field studies as for laboratory studies. However, methodological
problems in the validation research such as weak measures, possible confounding
of variables, and questionable analyses have been pointed out by several writers
(see reviews by Vecchio, 1983; Yukl, 1989). Moreover, the model has serious
conceptual deficiencies that limit its utility for explaining leadership effective-
ness, such as its narrow focus on a single leader trait, ambiguity about what the
LPC scale really measures, absence of explanatory processes, and failure to in-
clude medium LPC leaders (see reviews by Vecchio, 1983; Yukl, 1989). Contro-
versy continues regarding the relevance of research on the Leader Match training
program based on the model (e.g., Chemers & Fiedler, 1986; Fiedler & Chemers,
1982; Jago & Ragan, 1986a, 1986b).
LMX Theory
Vertical Dyad Linkage Theory, now called Leader-Member Exchange Theory,
describes how leaders develop different exchange relationships over time with
different subordinates (Dansereau, Graen, & Haga, 1975; Graen & Cashman,
1975). Some subordinates are given greater infiuence, autonomy, and tangible
benefits in retum for greater loyalty, commitment, and assistance in performing
administrative duties. The theory is situational only in the sense that leaders treat
subordinates differently depending on whether they are part of the in-group or
out-group. The theory has been extended to include a manager's upward relation-
ships. A leader who has a favorable exchange relationship with his or her own
boss has more potential for establishing a special exchange relationship with sub-
ordinates (Cashman, Dansereau, Graen, & Haga, 1976).
At the present time LMX theory is more descriptive than prescriptive. It de-
scribes a typical process of role making by leaders, but it does not specify what
pattem of downward exchange relationships is optimal for leadership effective-
ness. Some of the more recent studies have focused on the benefits to be gained
by a leader from developing special exchange relationships. A special upward ex-
change relationship was found to be a key predictor of a manager's advancement
in the organization in longitudinal research conducted in Japan (Wakabayashi &
Graen, 1984). A special downward exchange relationship with a subordinate re-
sults in greater loyalty and performance by the subordinate (Graen, Novak, &
Summerkamp, 1982; Graen, Scandura, & Graen, 1986; Scandura & Graen,
1984; Vecchio & Gobdel, 1984).
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 267
However, the theory has never been clear about the desirability of having
sharply differentiated in-groups and out-groups. A sharply differentiated in-
group is likely to create feelings of resentment and undermine team identification
among subordinates who are excluded from the in-group. The choice is not be-
tween sharply differentiated relationships and treating all subordinates the same.
Some aspects of a special exchange relationship such as greater delegation of re-
sponsibility and sharing of administrative functions may occur for a few subor-
dinates without precluding the leader from developing a relationship of mutual
trust, supportiveness, respect, and loyalty with the other subordinates. It is not
necessary to treat all subordinates exactly the same, but each should perceive that
he or she is an important and respected member of the team rather than a ' ' second
class citizen." It is likely that effective leaders establish some degree of special
exchange relationship with all subordinates, not just with a few favorites.
Even as a descriptive theory, LMX Theory has a number of conceptual weak-
nesses. Some important issues, such as the process of role-making, have not re-
ceived enough attention, either in the theory itself or in the research conducted to
test it (Dienesh & Liden, 1986; Vecchio, 1983; Vecchio & Gobdel, 1984). Re-
search on the basis for selecting in-group members is still very limited, and it is
still not clear how this selection occurs (Duchon, Green, & Taber, 1986; Kim &
Organ, 1982). The measures of LMX need further refinement, and it is important
to make a clearer separation between measures of the quality of relationship
(e.g., perceptions of mutual tmst, loyalty, and respect), measures of specific
leader behavior (e.g., delegating, consulting, praising, supporting, rewarding,
coaching, mentoring, monitoring) and measures of outcomes (e.g., perform-
ance, tumover).
Cognitive Resources Theory
This theory examines the conditions under which a leader's cognitive re-
sources (e.g., intelligence, experience, and technical expertise) are related to
group performance (Fiedler, 1986; Fiedler & Garcia, 1987). Situational variables
such as interpersonal stress, group support, and task complexity determine
whether a leader's intelligence and experience enhance group performance. The
theory proposes that a leader's cognitive resources affect group performance only
when the leader is directive and the task unstructured. According to the theory,
leader intelligence is related to group performance only when stress is low, be-
cause high stress interferes with the use of intelligence to solve problems and
make decisions. Leader experience will be related to group performance under
high stress but not under low stress, presumably because experienced leaders rely
mostly on experience for solving problems when under high stress, whereas they
rely mostly on intelligence under low stress.
Cognitive resource theory is new and not much research has been conducted
yet to evaluate it. The available evidence is reviewed by Fiedler and Garcia
(1987). Most of the validation studies to date have methodological deficiencies,
such as reliance on surrogate measures of experience (e.g., time in job) that may
be contaminated by extraneous variables, and failure to measure intervening
processes such as decision processes and decision quality. The theory also has
serious conceptual weaknesses. It emphasizes general intelligence at a time when
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
268 GARY YUKL
Leader-Environment-Follower-Interaction Theory
Wofford (1982) proposed a situational theory that is remarkably similar to the
earlier versions of the Multiple Linkage Model (Yukl, 1971, 1981). Subordinate
performance is dependent on four intervening variables: ability to do the work,
task motivation, clear and appropriate role perceptions, and the presence or ab-
sence of environmental constraints. A leader can influence subordinate perfor-
mance by influencing the intervening variables. In each case there is diagnostic
behavior to assess deficiencies in the intervening variables, and corrective behav-
ior to deal with any deficiencies that are found. Effective leaders avoid deficien-
cies in subordinate ability by using improved selection procedures, increased
training, or redesign of the job to match subordinate skills. In order to achieve
optimal levels of subordinate motivation, effective leaders select subordinates
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 269
with a high need for achievement, set specific but challenging goals, and provide
appropriate feedback and encouragement. The leader may also use incentives,
participation, competition, job redesign, or communication of high expectations
to increase motivation. To achieve role accuracy and clarity, effective leaders use
instruction, guidance, feedback, goal setting, formalization, or job redesign. To
deal with constraints in the work environment, effective leaders reorganize the
work, modify technology, provide resources, and remove physical constraints.
Leader behavior is infiuenced in tum by leader traits, situational variables, and
feedback from the intervening and outcome variables.
As in the Multiple Linkage Model, situational variables have direct infiuence
on the intervening variables and serve also to moderate the effects of leader be-
havior on the intervening variables. However, LEFI Theory does not make an ex-
plicit distinction between short term actions to correct deficiencies in intervening
variables and long-term actions to improve the situation. Like most of the situa-
tional theories, the complexity of LEFI Theory makes it difficult to test more than
a small part at a time. Wofford and Srinivasan (1983) report supportive results for
some of the hypotheses from laboratory experiments with students in which
leader behavior was manipulated. Much more research is needed, however, be-
fore the theory can be properly evaluated.
perhuman hero or spiritual figure (Bass, 1985). According to House (1977), the
indicators of charismatic leadership include follower's trust in the correctness of
the leader's beliefs, unquestioning acceptance ofthe leader, affection for the
leader, and willing obedience. Thus, with charismatic leadership, the focus is on
an individual leader rather than on a leadership process that may be shared among
multiple leaders.
In contrast to the leadership theories described earlier in this article, the theo-
ries of transformational and charismatic leadership are broader in scope; they si-
multaneously involve leader traits, power, behavior, and situational variables. As
such, this work represents an important step toward greater integration in the
leadership literature. Theory development is still at an early stage, and there is
still not much empirical research to test the few theories that have been proposed.
It is still not evident whether transformational and charismatic leadership are
squarely in the mainstream of leadership literature dealing with the day-to-day
managing of organizations, or whether they are a unique form of leadership found
only in exceptional circumstances such as severe political and economic crises.
Major theories of charismatic and transformational leadership and findings in em-
pirical research are reviewed in the remainder of this section.
House's Charismatic Leadership Theory
House (1977) proposed a theory that identifies how charismatic leaders behave,
how they differ from other people, and the conditions under which they are most
likely to fiourish. As noted earlier, the theory specifies indicators of charismatic
leadership that involve attitudes and perceptions of followers about the leader.
The theory also specifies leader traits that increase the likelihood of being per-
ceived as charismatic, including a strong need for power, high self-confidence,
and strong convictions. Behaviors typical of charismatic leaders include impres-
sion management to maintain follower confidence in the leader, articulation of an
appealing vision that defines the task in terms of idealogical goals to build fol-
lower commitment, communication of high expectations for followers to clarify
their expectations, and expression of confidence in followers' ability to build
their self-confidence. In addition, charismatic leaders set an example in their own
behavior for followers, and if necessary they act to arouse follower motives ap-
propriate for the task. As yet there has not been much empirical research to test
the theory, but supporting evidence for some of the propositions was found in
studies by House, Woycke, and Fodor (1988) and Howell and Frost (in press).
Research on the "pygmalion effect," wherein followers perform better when a
leader expresses confidence in them, also supports some aspects of the theory
(Eden, 1984; Eden & Shani, 1982). Bass (1985) noted some conceptual limita-
tions and recommended extending the theory to include additional traits, behav-
iors, indicators of charisma, and facilitating conditions. For example, he pro-
posed that charismatic leaders are more likely to appear in the situation where
formal authority has failed to deal with a severe crisis and traditional values and
beliefs are questioned.
Conger and Kanungo Charismatic Theory
The version of charismatic theory proposed by Conger and Kanungo (1987,
1988) is based on the assumption that charisma is an attributional phenomenon.
JOURNAL OF MANAGEMENT VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 271
The theory was based in part on results from earlier research on charismatic
leaders, and in part on new research by Conger and Kanungo (1987) comparing
charismatic to non-charismatic executives. The theory appears promising, but as
yet there is not enough research to evaluate it.
should not be limited to the narrow range of behaviors represented in the Multi-
factor Leadership Questionnaire. The descriptive research on charismatic and
transformational leadership provides clues about additional transformational be-
haviors that could be included. Finally, when transformational leadership is com-
pared to more traditional types of managerial behavior, it is essential to include in
the latter category a full range of managerial behaviors (e.g., planning, problem
solving, clarifying, monitoring, consultation and delegation, networking, recog-
nizing, rewarding, team building, informing, etc.).
Descriptive Research
Most of the research on charismatic and transformational leadership has been
descriptive and qualitative. For example, in several major studies of transforma-
tional leadership, interviews were conducted with leaders previously identified as
transformational on the basis of questionnaire responses, peer nominations, or
because their organization was known to have undergone a major revitalization
or transformation of strategy and culture (Bennis & Nanus, 1985; Gibbons, 1986;
Peters & Austin, 1985; Tichy & Devanna, 1986). In this research, the usual ap-
proach is to analyze the descriptive infonnation to identify common themes and
characteristic behaviors, traits, and influence processes for effective transforma-
tional leaders. Some of the descriptive research on charismatic leaders consists of
intensive case studies of a single leader (e.g., Roberts, 1985; Roberts & Bradley,
1988; Trice & Beyer, 1986). Some of the research involves content analysis of the
activities and behavior of famous leaders as described in biographical accounts,
or content analysis of a leader's speeches and writings (e.g.. Bums, 1978; House,
Woycke, & Fodor, 1988; Van Fleet & Yukl, 1986a; Westley & Mintzberg, 1988;
Willner, 1984). In still another approach, Yukl and Van Fleet (1982) analyzed
critical incidents describing effective behavior by military officers to identify
characteristic examples of inspirational behavior.
The descriptive research tends to be too imprecise for reaching firm conclu-
sions about specific relationships, but it provides some insights into the nature of
transformational and charismatic leadership. The studies rather consistently find
that it is important for the leader to articulate a clear and appealing vision relevant
to the needs and values of followers. Communication of this vision is facilitated
by the leader's actions, by what the leader attends to, and by the use of emotional
appeals, symbols, metaphors, rituals, and dramatic staged events. The intellec-
tual components of the vision appear important for influencing how followers in-
terpret events and for persuading followers that the leader's strategy for attaining
the vision is feasible. Contrary to one of the propositions by Conger and Kan-
ungo, some of the descriptive research suggests that a successful vision is more
likely to be developed through a participative process than unilaterally (Bennis &
Nanus, 1985; Roberts, 1985). Perhaps the unique contribution of the leader is to
collect and integrate the components of a vision provided by followers, then make
the vision come alive through persuasive articulation.
An Integrating Conceptual FVamework
Despite the prevailing pattem of segmentation in research on leadership over
the past 40 years, the number of studies that straddle more than one approach is
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
274 GARY YUKL
slowly increasing, and the different lines of research are gradually converging
(House, 1988b; Yukl, 1989). When the sets of variables from different ap-
proaches are viewed as part of a larger network of interacting variables, they ap-
pear to be inter-related in a meaningful way. Figure 1 provides an integrating con-
ceptual framework that encompasses each of the important sets of variables
relevant for leadership effectiveness. Most leadership theories can be incorpo-
rated into this model.
The conceptual framework is based on the assumption that organizational ef-
fectiveness, in terms of end-result variables, is mediated by a core set of inter-
vening variables, similar to those in Yukl's Multiple-Linkage Model. As in
House's (1971) Path-Goal Theory, Wofford's (1982) LEFI Theory, Vroom and
Yetton's (1973) Normative Decision Theory, and some of the charismatic lead-
ership theories, leaders can directly infiuence intervening variables such as sub-
ordinate motivation in a variety of ways. Infiuence attempts are embedded in a
leader's broader managerial behavior, and a leader's position power and personal
power are viewed as moderators of the effects of this behavior. As in Yukl's
Leader Characteristics
Need Achievetnent
Need Power
Self-confidence
Emotiotial Maturity
Technical Skills
Conceptual Skills
Interpersonal Skills
Situational Variables
Position Power
Nature of Subordinates
Task/Technology
Organization Structure
Nature of Environment
Extemal Dependencies
Social-Political Forces
Organization Culture
(1981) Multiple Linkage Model and Hersey and Blanchard's (1988) Situational
Leadership Theory, leaders can indirectly influence intervening variables and re-
sulting outcomes by taking actions to reduce constraints, expand choices, and
make the situation more favorable. Once again, power, influence tactics, and po-
litical tactics are involved in these processes. One indirect approach is to modify
the culture of the organization, as described in some of the literature on transfor-
mational leadership. Like Leadership Substitutes Theory, the integrating model
recognizes that leadership is only one of many determinants of the intervening
variables and end results; the possibility that a leader's influence may be over-
whelmed by stronger situational influences is explicitly acknowledged. Like So-
cial Exchange Theory and LMX Theory, the integrating model allows for recip-
rocal influence processes; leader behavior is both an independent and dependent
variable at the same time. Leader behavior is influenced by a variety of factors,
including aspects of the situation dealt with by Stewart's (1982) Demands - Con-
straints - Choices Theory and by Hunt and Osbom's (1982) Multiple Influence
Model. Leader behavior is influenced also by leader traits and values, role expec-
tations, and interpretation of feedback about the state of intervening and outcome
variables. Thus, the integrating framework also incorporates elements of role the-
ory, theories of managerial motivation, and attribution theory.
As integrative research continues, this sketchy conceptual framework may be
transformed eventually into a full-fledged theory. For now the framework pro-
vides a helpful guide for the design of integrative research and mini-theory.
Is Leadership Important?
Most leadership research makes the explicit or implicit assumption that lead-
ership is an important determinant of organizational effectiveness. However,
some writers question this assumption (Brown, 1982; Pfeffer, 1977). Pfeffer pro-
posed that organizational effectiveness depends primarily on factors beyond the
leader's control, such as the economic conditions, market conditions, govem-
mental policies, and technological change. The new CEO ofa mature company
inherits an organization with various strengths and weaknesses, and the potential
for making improvements is severely limited by intemal political constraints and
extemal market conditions. A similar argument has been made for constraints on
the influence of lower-level leaders (Kerr, Hill, & Broedling, 1986).
Research on top leadership succession is relevant to the question of leadership
importance. Succession studies examine changes in performance occurring after
changes in leadership (Lieberson & O'Connor, 1972; Pfeffer & Davis-Blake,
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
276 GARY YUKL
1986; Smith, Carson, & Alexander, 1984; Salancik & Pfeffer, 1977b; Thomas,
1988; Weiner & Mahoney, 1981). It is assumed that, if leadership is important,
changes in top leadership should be associated with changes in the performance
ofthe organization. These studies demonstrate the difficulty of doing research on
leadership importance. Selection of an appropriate criterion of organizational
performance has been a particular problem. Day and Lord (1989) found that re-
sults from the studies by Salancik and Pfeffer (1977b) and Lieberson and O'Con-
nor (1972) were understated due to methodological problems such as failure to
correct for the effects of organization size, failure to correct dollar-denominated
criteria for effects of inflation, use of inappropriate criteria that are not influenced
directly by leaders (e.g., stock prices), and failure to allow enough time for new
leaders to influence quantitative performance outcomes. Methodological prob-
lems in succession research are also discussed by Thomas (1988).
After methodological problems are taken into account, the succession research
suggests that chief executives are able to exert a moderate influence on organi-
zational performance over a period of several years. The magnitude of this influ-
ence is likely to depend both on the leader's skills and on some situational con-
ditions, such as whether there is a performance crisis at the time of succession,
whether there is an inside or outside successor, and how much support the suc-
cessor has from key stockholders to make major changes in strategy (Brady &
Helmich, 1984; House & Singh, 1987).
Is Leadership Merely an Attributional Phenomenon?
A number of writers have argued that the importance of leadership is exagger-
ated by the need for people to explain events in a way that fits their assumptions
and implicit theories (Calder, 1977; Meindl, Ehrlich, & Dukerich, 1985; Pfeffer,
1977). Organizations are complex social systems of patterned interactions among
people. In their effort to understand the causes, dynamics, and outcomes of or-
ganizational processes, people interpret events in simple, human terms. Stereo-
types, implicit theories, and simplified assumptions about causality help people
make sense out of events that otherwise would be incomprehensible. One espe-
cially prevalent explanation of organizational events is to attribute causality to the
influence of leaders. Leaders are pictured as heroic figures who are capable of
determing the fate of their organizations. There is a mystical, romantic quality
associated with leadership, similar to that for other stereotyped heroes in our cul-
ture, such as the lone cowboy who single-handedly vanquishes the bad guys, and
the secret agent who acts alone to save the world from nuclear destruction.
The emphasis on leadership as a cause of organizational events reflects a com-
mon cultural bias toward explaining experience primarily in terms of the rational
actions of people, as opposed to uncontrollable natural forces, actions by super-
natural beings, or random events not susceptible to human comprehension. A
related cause is the widespread faith in human organizations as rational, goal-ori-
ented systems that fulfill the needs of members and contribute to the general wel-
fare of society. The people who occupy positions of top leadership in organiza-
tions symbolize the promise of organizations in modem civilization (Meindl,
Ehrlich, & Dukerich, 1985).
The attributional biases about leaders are exploited and magnified by political
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 277
leaders and top executives who seek to create the impression that they are in con-
trol of events. Symbols and rituals, such as elaborate inaugural ceremonies, rein-
force the perceived importance of leaders (Pfeffer, 1977). Successes are an-
nounced and celebrated; failures are suppressed or downplayed. Symbolic action
is most likely when situational constraints and unpredictable events make it im-
possible for management to exert much influence over organizational perform-
ance. In this situation it is all the more important to maintain the impression that
organizational leaders know what they are doing and are making good progress
toward attaining organizational objectives (Bettman & Weitz, 1983; Salancik &
Meindl, 1984; Staw, McKechnie, & Puffer, 1983).
The attributional research demonstrates a bias for people to exaggerate the im-
portance of leadership as a cause of organizational performance, but this research
fails to show that leaders have no influence on performance. Together with the
succession research, the attribution research demonstrates that an accurate con-
ception of leadership importance lies between the two extremes of heroic leader
and impotent figurehead. How an organization performs is determined by a va-
riety of extemal and intemal factors. The intemal factors include leadership proc-
esses at all levels, not just the competence and actions of the CEO (Bames & Kri-
ger, 1986; Bradford & Cohen, 1984; Bums, 1978). Indeed, Bradford and Cohen
contend that the stereotype of the heroic leader undermines effective leadership by
a chief executive. The heroic manager is expected to be wiser and more coura-
geous than anyone else in the organization and to know everything that is hap-
pening in it. However, these expectations are unrealistic, and leaders are seldom
able to live up to them. Shared responsibility for leadership functions and em-
powerment of subordinates is more effective than heroic leadership, but it is un-
likely to occur as long as people expect the leader to take full responsibility for
the fate of the organization.
haviors (Goia & Sims, 1985). Accurate measurement is unlikely when respon-
dents are given the difficult task of retrospectively rating how often or how much
a leader exhibited some behavior over a period of several months or years.
As the limitations of questionnaire-correlational research have become more
apparent, some leadership researchers have turned to qualitative, descriptive
methods such as observation, interviews, and intensive case studies. However,
these methods also have limitations (House, 1988a; Martinko & Gardner, 1984,
1985; Miles, 1979). Standards for the application and evaluation of qualitative
methods are not as explicit as those for traditional quantitative methods, and
interpretations based on qualitative methods are sometimes very subjective. The
data collection methods in qualitative-descriptive research are also susceptible to
biases and distortions. Information obtained from critical incidents and inter-
views may be biased by selective memory for aspects of behavior consistent with
the respondent's stereotypes and implicit theories about effective leadership. Di-
rect observation is susceptible to selective attention and biased interpretation of
events by the observer due to stereotypes and implicit theories. When an observer
or interviewer has information about unit performance, attribution errors may oc-
cur also. Finally, qualitative research can be just as superficial as much of the
quantitative research. In some observation studies the observer merely checks off
predetermined categories to classify events, rather than writing narrative descrip-
tions of them to be coded at a later time. This highly structured observation may
focus attention away from the most interesting aspects of the events being ob-
served, and unlike narrative description, it precludes other researchers from ver-
ifying the coding or reclassifying events in terms of different category systems.
It is rare to find observational studies in leadership that include supplementary
methods such as interviews with key figures to discover the context and meaning
of events. An exception is the study by Morris, Crowson, Hurwitz, and Porter-
Gehrie (1981). However, as these researchers point out, there are risks as well as
benefits from supplementary interviews. When observers ask leaders about their
behavior, they increase the likelihood of becoming involved in the very processes
under observation, thereby risking objectivity.
The limitations of each type of methodology make it imperative to use multiple
methods in research on leadership (Jick, 1979; Luthans & Lockwood, 1984; Yukl
& Van Fleet, 1982). It is also important to select methods that are appropriate for
the type of knowledge sought, rather than merely using whatever method seems
most convenient. The purpose ofthe research should dictate the methodology and
choice of samples, not the other way around. Unfortunately, much ofthe research
literature in leadership appears to be the result of uninspired researchers seeking
yet another use for a questionnaire or test laying around on the shelf. Finally, if
leadership involves interactive, interpersonal, and attributional processes in so-
cial systems, then we need to develop better research methods to deal with the
complex nature of these processes. Some rarely used methods that appear to have
promise for studying leadership include protocol anaysis (Schweiger, 1983),
stimulated recall (Burgoyne & Hodgson, 1984), realistic simulations (Kaplan,
Lombardo, & Mazique, 1985), and detailed ethnographic analysis (Strong,
1984).
JOURNAL OF MANAGEMENT, VOL. 15, NO. 2, 1989
MANAGERIAL LEADERSHIP 279
Conclusions
Critics bemoan the lack of progress in leadership research. However, despite
the fact that the yield of knowledge is much less than would be expected from the
immense literature on leadership, we have made some real progress in unraveling
the mysteries surrounding this subject (House, 1988a; Yukl, 1989). The last dec-
ade has seen a significant increase in the scope of inquiry and variety of meth-
odology. Some interesting trends are beginning to emerge in the theory and re-
search of the 198O's. The pendulum appears to be swinging back from extreme
situationalism to a more balanced theoretical perspective. The possibility that
some propositions are generally applicable is being reconsidered, even though
general principles must be applied differently in different situations. For exam-
ple, the universal proposition that effective leaders have high concem for both the
task and people is not inconsistent with the situational proposition that leaders act
in different ways depending on the situation (Blake & Mouton, 1982; Sashkin &
Fulmer, 1988; Yukl, 1989). In another emerging trend, the pendulum appears
poised to swing away from a focus on individual leaders toward conceptions of
leadership as a shared process embedded in social systems (Bums, 1978; Crouch
& Yetton, 1988; Dachler, 1984; Hosking & Morley, 1988). Since most of the pre-
vailing theories are simple, unidirectional models of causality that focus on what
a leader does to subordinates, new theories are needed to describe interactive
leadership processes that unfold over time in social systems.
It is interesting to note that much of the "new" wisdom found in the literature
on transformational leadership repeats themes of the 196O's, although the pre-
scriptions are often clothed in different jargon. The need to empower subordi-
nates and develop a sense of ownership for what goes on in the organization
echoes the emphasis on power sharing, mutual trust, and participative decision-
making by writers such as Argyris (1964), McGregor (1960), and Likert (1967).
The emphasis on developing human potential and activating higher-order needs
in the service of the organization echoes the earlier humanistic concem for qual-
ity of work life and supportive relationships. If anything is new, it is perhaps the
awareness of political processes in organizations, the recognition that symbolic
processes and management of meaning are as important as management of
things, and the awareness that leadership processes are embedded in the culture
of the organization, shaping it and being shaped by it (Schein, 1985; Pfeffer,
1981).
Another important trend is the growing awareness that leadership concepts and
theories proposed by social scientists are subjective efforts to interpret ambigu-
ous events in a meaningful way, not precise descriptions of real events and im-
mutable natural laws (Astley, 1985; Dachler, 1988). Social scientists interpret
events for practitioners, just as leaders interpret events for followers, and the inter-
pretation is itself a reflection of the prevailing culture and values (Calas & Smir-
cich, 1988). Perhaps this awareness will help to make leadership researchers a lit-
tle more humble about their theories and measures, and practitioners a little less
preoccupied with finding the latest secret remedy for leadership success.
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