BA4135 LEADERSHIP THEORY & APPLICATION

BA4135 LEADERSHIP THEORY & APPLICATION
Professor: Pinar Acar

Course Rules Professionalism & Courtesy Score 5% of letter grade
Attend every class Come and leave on time Professional and mature behavior in class No cell phones

Assignments One project One simulation individual
Groups of 2 or individually Letter grades will be adjusted according to peer evaluations One simulation individual

In-class Exercises & Cases
Do advance reading of textbook material Read the assigned cases and prepare the discussion questions Be prepared to make informal presentations to class Use relevant concepts and theories

Other Policies No make-up exam
Denying credit to students that fall short of acceptable performance level Plagiarism Information sheets - Mar4 Peer evaluation – last week

Agenda Defining leadership Identify why leadership is important
Discuss leadership effectiveness Discuss if leaders are born or made Discuss managerial roles Identify major approaches to leadership

Why is leadership important?
Do leaders make a difference? Is leadership only about CEOs of large companies? Are leaders born or made?

Defining Leadership Leadership is the influencing process of leaders and followers to achieve shared objectives Leaders – Follower Context: Formal organizations Influencing: The process of communicating ideas, gaining acceptance of them, and motivating others to support and implement them.

Leadership Effectiveness
Performance and goal achievement Follower attitudes Smooth internal processes External adaptability

Approaches to Leadership
Trait approach Behavior approach Power-Influence approach Situational approach Integrative approach

The Nature of Managerial Work
Chapter 3 The Nature of Managerial Work

Agenda Understand the typical activity patterns for people in managerial positions Understand the different roles required for managers Understand how managers cope with the demands, constraints, and choices confronting them Understand how managers can make effective use of their time

Typical Activity Patterns in Managerial Work
Pace of work is hectic and unrelenting Content of work is varied and fragmented Many activities are reactive Interactions often involve peers and outsiders

Typical Activity Patterns in Managerial Work (Cont.)
Many interactions involve oral communication Decision processes are disorderly and political Most planning is informal and adaptive

The Content of Managerial Work
Job description research Supervising Planning and organizing Decision making Monitoring indicators Controlling Representing Coordinating Consulting Administering

Mintzberg’s Managerial Roles

Managerial Roles Described by Mintzberg.
A role is a set of specific tasks a person performs because of the position they hold. There are 3 broad role categories: 1. Interpersonal 2. Informational 3. Decisional

Interpersonal Roles Roles managers assume to coordinate and interact with employees and provide direction to the organization. Figurehead role: symbolizes the organization and what it is trying to achieve. Leader role: train, counsel, mentor and encourage high employee performance. Liaison role: link and coordinate people inside and outside the organization to help achieve goals.

Informational Roles Associated with the tasks needed to obtain and transmit information for management of the organization. Monitor role: analyzes information from both the internal and external environment. Disseminator role: manager transmits information to influence attitudes and behavior of employees. Spokesperson role: use of information to positively influence the way people in and out of the organization respond to it.

Decisional Roles Associated with the methods managers use to plan strategy and utilize resources to achieve goals. Entrepreneur role: deciding upon new projects or programs to initiate and invest. Disturbance handler role: assume responsibility for handling an unexpected event or crisis. Resource allocator role: assign resources between functions and divisions, set budgets of lower managers. Negotiator role: seeks to negotiate solutions between other managers, unions, customers, or shareholders.

Role Conflicts Role senders Role expectations Conflicting demands
Perceptions of role requirements

Unique Role Requirements Stewart (1967, 1976, 1982)
Demands – required duties, activities, and responsibilities Constraints – limiting characteristics of the organization and external environment Choices – activities that a manager may do but is not required to do

Unique Role Requirements Situational Determinants
Pattern of relationships Work patterns Exposure

Research on Situational Determinants
Level of management Size of organizational unit Lateral interdependence Crisis situation Stage in the organizational life cycle

Changes in the Nature of Managerial Work
Economics, politics, and society Globalization New computer and telecommunications technology Structure of organizations Outsourcing and just-in-time inventories

Applications for Managers
Time Management Applications for Managers

Importance of objectives & priorities
Daily Tasks Intermediate Goals Long-Range Goals Personal Governing Values Productivity Pyramid

Time Mgt. Matrix Importance (driven by values and goals) Not Imp Imp
But Urgent Imp & Urgent Urgency Imp But Not Urgent Neither Imp Nor Urgent

Beating the time wasters
Make a list of all the things you will do tomorrow. Prioritize each item in terms of A, B, and C. Take time to reclassify Make a list of all the time wasters that interfere with your ability to accomplish your long-term objectives.

Sources of Problems in Time Mgt.
Some normal human tendencies Prefer to do things that are interesting and pleasant Prefer to do things that are easy Tend to do things that are urgent Wait until just before a deadline Not aware of how time is used Equate activity with achievement

Sources of Problems in Time Mgt.
Some basic paradoxes: Busy people can’t find time to plan People who mostly respond to crisis insure they will recur People who can’t delegate to inexperienced subordinates are unlikely to develop them People who find time to do things for others are likely to be asked to do even more things People who tend to leave things on their desk create clutter

Common Time Wasters for Mgrs.
Drop-in Visitors Telephone interruptions Cluttered office Unessential tasks Unnecessary or over-long meetings Causes Possible remedies Barriers Screening mechanisms Scheduling mechanisms Clarifying role expectations

Other Causes Plan daily activities Procrastination Perfectionism
Make a to-do list and assign priorities Procrastination Perfectionism Analyzing activity patterns

Managing Stress Stress causes a variety of ilnesses.
Work-related effects. Stress is within the person. Perceptual and subjective A certain amount of stress is inevitable.

Sources of Stress Individual differences Stressful life situations
Type A behavior pattern Stressful life situations Work-related stressors Work overload Time pressures Role conflict Office politics

Strategies Remove yourself Alter the situation
Teach yourself to respond differently Clarify your values Stress vaccine Create a personal support system Maintain good physical health Take energy breaks Perform relaxation techniques

Proven Stress Reducers
Get up 15 min earlier Prepare for the morning the evening before Do nothing which leads you to tell a lie Manage your time effectively Breathe right Make contingency plans Say no. Delegate responsibility Do one thing at a time

Managerial Traits and Skills
Chapter 7 Managerial Traits and Skills

Terminology Personality: The pattern of relatively enduring ways in which a person feels, thinks, and behaves. Trait: A specific component of personality that describes particular tendencies a person has to feel, think, and act in certain ways. Values: Convictions that a specific course of action or outcome is personally or socially preferable to an opposite or converse course of action or outcome. Needs: Physiological or psychological deficiencies that people feel some compulsion to eliminate. Skill: An ability to do something effectively

The Big Five Model of Personality
6 The Big Five Model of Personality Surgency: The tendency to experience positive emotional states and feel good about oneself and the world around. Neuroticism: The tendency to experience negative emotional states and view oneself and the world around negatively. Agreeableness: The tendency to get along well with others. Conscientiousness: The extent to which a person is careful, scrupulous, and persevering. Openness to Experience: The extent to which a person is original, has broad interests, and is willing to take risks. 7

7 Insert Figure 2.3 here 3

8 Insert Figure 2.4 here 3

Why executives are derailed?
Used a bullying style viewed as intimidating, insensitive, and abrasive Viewed as being cold, aloof, and arrogant Low emotional stability Were self-centered and viewed as overly ambitious and thinking of the next job Betrayed personal trust (low integrity) Defensive – resistant to change Had specific performance problems with the business Overmanaged and were unable to delegate or build a team

Traits of Effective Leaders
Dominance High energy Self-confidence Integrity Flexibility Self-Confidence Emotional Stability Sensitivity to others Intelligence Internal locus of control

Need for Achievement Doing better than competitors
Attaining or surpassing a difficult goal Solving a complex problem Carrying out a challenging assignment successfully Developing a better way to do something

Need for Power Influencing people to change their attitudes or behavior Controlling people and activities Being in a position of authority over others Gaining control over information and resources Defeating an opponent or enemy

Need for Affiliation Being liked by many people
Being accepted as part of a group or team Working with people who are friendly and cooperative Maintaining harmonious relationship and avoiding conflicts Participating in pleasant social activities

Leader Motive Profile Theory
Attempts to explain and predict leadership success based on a person’s nAch, nPow. and nAff. LMP: a high need for power which is socialized, a moderate need for achievement and a lower need for affiliation. Power – socialized power Achievement Affiliation

Agenda Research on effective leadership behavior
Yukl’s taxonomy of leadership behaviors Consolidated products case Air Force Supply Squadron Identifying managerial practices Giving and receiving instructions Giving praise

Effective Leadership Behavior

Leadership Style The recurrent pattern of behaviors leaders use as they interact with followers.

University of Iowa Autocratic leadership style
Democratic leadership style Effective leaders are more democratic

University of Michigan
Job-centered leadership style Employee-centered leadership style Leadership functions can be carried out by others besides the formal leader. Indicated importance of participative leadership and group supervision

Ohio State University 2 dimensions of leader behavior:
Initiating structure Consideration 4 leadership styles: Abdicative leader Directive/autocratic leader Supportive leader Participative leader

Blake & Mouton’s Managerial Grid
High Country Club Management Team Management Middle-of-the-Road Management Concern for People Authority-Compliance Management Impoverished Management Low Low High Concern for Production 23

Contributions Efforts to find one best leadership style was inconclusive There is no one best style that works in every situation Employees are more satisfied with a leader high on consideration/employee-centeredness Identification of the two generic dimensions of leadership behavior

Yukl’s Taxonomy: Managerial Practices

Early Research Two broad categories of behavior:
Task-oriented behavior Relationship-oriented behavior Both types of behavior are necessary for effective management BUT it was not clear what managers actually do to accomplish task objectives and build effective interpersonal relationships

Task-Oriented Behaviors
Plans and defines work to be done Assigns tasks and responsibilities Sets clear work standards Urges task completion Monitors performance results

Relationship-Oriented Behaviors
Acts warm and supportive toward followers Develops social rapport with followers Respects the feelings of followers Is sensitive to followers’ needs Shows trust in followers

14 Managerial Practices Planning and Organizing Problem Solving
Monitoring Operations and Environment Motivating Recognizing Rewarding Informing

14 Managerial Practices Clarifying Roles and Objectives Supporting
Developing Consulting Delegating Team Building and Managing Conflict Networking

Planning & Organizing Decision making about what to do, how to do it, who will do it, and when it will be done. Purpose: ensure efficiency and effective achieve coordination with other parts of orgnization adapting to external environment Many varieties design of organizational unit’s structure design of individual jobs allocation of resources among different activities development of procedures

Problem Solving Purpose: To maintain orderly, stable operations at the current level of efficiency. Occurs in response to some immediate disturbance of normal operations Differences from planning: Purpose Reactive Short-term Shorter duration Managers should not become too preoccupied with reacting to day-to-day problems.

Monitoring Operations & Environment
Gathering information about Operations of work unit Progress of work Performance of subordinates Success of projects Nature of external environment Forms of monitoring: Walking around Reading reports Meeting with subordinates Inspecting the work Getting reactions from customers Purpose: To maintain the stability of operations and facilitate adjustments to changes in the external environment Closely related to planning and problem solving

Informing Communication of relevant information needed by subordinates, peers, or superiors to perform their jobs and providing outsiders information about the organization to foster a favorable image. Forms: Making an explanation in a meeting Calling someone on the phone Writing memos and reports Putting messages on the bulletin board Distributing a newsletter Relaying written materials Purpose: To facilitate the work of others

Clarifying Roles & Objectives
Communication of role expectations to subordinates and others who make an important contribution to work unit operations. Purpose: To guide and orient work activity Forms: Giving commands Making task assignments Explaining rules and procedures Explaining duties Explaining how to do a task Setting standards, goals, and deadlines Supervising Improves subordinate satisfaction and performance where there would otherwise be role ambiguity. Improves performance if involves clear, specific, and realistic performance goals.

Motivating Use of influence techniques to generate enthusiasm for the work, commitment to task objectives, and complaince with orders and requests Directed at subordinates, peers, superiors, and outsiders Influence tactics: Rational persuasion Inspirational appeals Role modeling Involves use of power Involves use of visioning speeches and symbolic actions

Recognizing & Rewarding
Giving of tangible and intagnible rewards for effective performance, significant accomplishment, and helpful assistance. Directed at both subordinates and others Purpose: To influence behavior and to increase satisfaction. Timely recognition and appropriate rewards are the key

Supporting & Developing
Showing consideration, acceptance, and concern for the needs and feelings of other people. Developing is a subcategory Purpose: To build and maintain effective interpersonal relationships and to increase job satisfaction

Consulting & Delegating
Encouraging the participation of others in making decisions for which the manager is responsible. Examples: Asking for suggestions Encouraging evaluation of proposals Inviting people to meetings Holding special meetings or hearings Asking subordinates to solve a problem with you Seeking group consensus for decisions Purpose: To improve the quality and acceptance of decisions and to enrich jobs of subordinates.

Team Building & Managing Conflict
Involves wide variety of behaviors involving development of teamwork and cooperation. Mediating conflicts between others Smoothing over disagreements Encouraging the constructive resolution of conflict Stressing the importance of cooperation Encouraging the sharing of information and ideas Using ceremonies and symbols to develop identification with organizational unit Facilitating social interaction among work unit members Purpose: To maintain effective working relationships and to achieve a cohesive work unit.

Networking Involves developing and maintaining contacts with people who are important sources of information and assistance, both within and outside of the organization. Examples: Socializing and informal discussions Attending social and ceremonial events Participating recreational and leisure activities Joining professional associations or social clubs Offering assistance Doing favors that will be appreciated Providing helpful information It is important for managers to develop an extensive contacts with persons in other parts of the organization and with important outsiders.

Giving Instructions Plan the message What is the goal of the message?
Who should receive the message? How will you send the message? When will the message be sent? Where will the message be transmitted?

Giving Instructions Be careful not to talk too fast Develop rapport
State your communication objective Transmit your message Check understanding Get a commitment and follow-up

Giving Instructions Written communication: Set an objective and plan
Keep the message short and simple Edit and rewrite where necessary

Receiving Instructions
Pay attention Avoid distractions Stay tuned Do not assume and interrupt Watch nonverbal cues Ask questions Take notes Convey meaning Analyze Check understanding

Giving Praise The One-Minute Giving Praise Model (Blanchard & Johnson)
Tell the employee exactly what was done correctly. Tell the employee why the behavior is important. Stop for a moment of silence. Encourage repeat performance.

Participative Leadership
Chapter 4 Participative Leadership

Types of Decision Procedures
Autocratic Decision Consultation Group Decision Delegation

Autocratic Decision The leader makes a decision alone without asking subordinates for their ideas and suggestions. Then, the leader tells them what was decided, and if necessary, explains the decision or tries to sell it.

Consultation The leader explains the decision problem to subordinates and asks them for their ideas and suggestions. The leader may consult with subordinates individually or together as a group. Then the leader makes the final decision after careful consideration of their input.

Group Decisions The leader meets with subordinates to discuss the decision problem and reach a decision that is acceptable to everyone or at least to a majority of group members. The leader runs the meeting but has no more influence over the final decision than any other group member.

Delegation The leader gives an individual or group the authority and responsibility for making a decision.

Criteria to Select Appropriate Procedure
Decision Quality Decision Acceptance Time Needed to Make the Decision

Decision Quality High- if the selected alternative is the best one among those available. Is decision quality an important issue? Distribution of relevant information and the extent to which it is possible to bring this info to bear on the decision solution Does the leader possess all the necessary information? Do the subordinates have the necessary information and problem solving skills? Is the problem clear-cut? Does the leader have necessary skills to use consultation and group decision making? Do the subordinates share the leader’s objectives?

Decision Acceptance The extent to which the persons who must implement the decision believe in it and are motivated to make it work. Is decision acceptance by subordinates important? Does the leader depend on the subordinates to implement the decision? Can acceptance be achieved with an autocratic decision? leader has good understanding of the subordinate preferences subordinates share the objectives of the leader and leader can persuade them the leader has the skills to persuade subordinates. subordinates loyal to the leader and believe in his/her expertise. If decision acceptance is unlikely with an autocratic decision, use a participative decision procedure. Group skills of the leader are important.

Decision Time Immediate crisis Direct and overhead costs
Lost opportunities Reach a decision as quickly as possible without jeopardizing decision quality and acceptance. Decision Time: Autocratic - quickest Consultation - slower Group - slowest

THE DECISION MODEL Decision Acceptance Not important or Assured w/ Autocratic Important or Not Assured w/ Autocratic Decision Quality Qualit not Important AUTOCRATIC GROUP GROUP if consistent goals Quality important Leader has all info AUTOCRATIC CONSULTATION if inconsistent goals GROUP if consistent goals Quality important Leader does not have necessary info CONSULTATION CONSULTATION if inconsistent goals

Vroom-Jago Model Helps gauge the appropriate amount of participation for subordinates This model has five levels of leader participation styles ranging from highly autocratic to highly democratic. 16

Vroom-Jago Model The diagnostic questions deal with: The problem
The required level of decision quality The importance of subordinates accepting the decision. 17

Vroom-Jago Model Selecting a decision style allows a manager to adopt a participation style through a series of decision rules With decisions equally acceptable this model recommends the most autocratic style as it saves time and does not reduce quality of acceptance. 18

Chapter 4 (Cont’d) Delegation

To Delegate or Not to Delegate
Strongly disagree Disagree Neutral Agree Strongly agree Most of the time subordinates are to inexperienced to do a job, so I prefer to do it myself._____ It takes more time to explain the job than to do the job myself. _____ Mistakes by subordinates are too costly, so I don’t assign work to them. _____ In my position, I get quicker action by doing a job myself rather than having a subordinate to do it. _____ Some things simply should not be delegated. _____ Many subordinates are detail specialists and lack the overall knowledge required for a job out of their specialty; thus, they cannot be assigned additional job responsibilities. _____ Subordinates are usually too busy to take on any more work. _____ Most subordinates just aren’t ready to handle additional responsibilities. _____ As a manager, I should be entitled to make my own decisions about my doing detail work rather than administrative work TOTAL _____

Delegation Assignment of new responsibilities to subordinates and additional authority to carry them out.

Varieties of Delegation
The variety and magnitude of responsibilities. The amount of discretion or range of choice allowed in deciding how to carry out responsibilities. The authority to take action and implement decisions without prior approval. The frequency and nature of reporting requirements. The flow of performance information.

Advantages of delegation
Improved decision quality Increased commitment Job enrichment Subordinate development Efficient time management

Reasons for lack of delegation
Lack of confidence in subordinates Fear of being blamed for subordinates’ mistakes Strong for need power Subordinates have interdependent jobs & Standardization is important Mistrust of subordinates

What to Delegate? Tasks that can be done better by subordinates
Tasks that are urgent but not high priority Tasks relevant to a subordinate’s career Tasks appropriate for subordinate’s ability Pleasant and unpleasant tasks Tasks not central to manager’s role

What not to delegate Personnel matters Confidential activities Crises
Tasks delegated to you personally

How to Delegate Specify responsibilities and check for comprehension
Provide adequate authority and specify limits of discretion Specify reporting requirements Ensure subordinates acceptance of responsibilities Inform others who need to know Monitor progress Arrange for the subordinate to receive necessary information Provide support and assistance, but avoid reverse delegation Make mistakes a learning experience

Potential Pitfalls of Delegation
Misunderstanding the assignment and the manager’s expectations. Feeling that assignment surpasses their ability and being embarrassed by failure. Not being given the authority to complete the assignment or the discretion to choose the manner of completion. Lack of time Assigning a lower priority than the one assigned to it by the manager Lack of motivation

Delegation Model Explain the need for delgating and the reasons for selecting the employee. Set objectives that define responsibility, level of authority, and deadline. Develop a plan. Establish control checkpoints and hold employees accountable.

The Dyadic Approach to Leadership
Chapter 5 The Dyadic Approach to Leadership

Key Definitions Dyad: A group of two.
Dyadic: The relationship between a leader and each follower in a work unit. Dyadic theory: Approach to leadership that attempts to explain why leaders vary their behavior with different followers. Central idea: A leader will form different relationships with different followers.

Evolution of The Dyadic Approach
Vertical Dyadic Linkage Theory (VDL): Leaders’ behaviors and traits have differential impact across followers creating in-groups and out-groups. Leader-Member Exchange Theory (LMX): Extension of VDL Focuses on the quality of the dyadic relationship and its effects on the organizational outcomes over time. Partnership/team building: Leaders can create positive relationships with every subordinate. Systems and Networks: Dyads can be created in all directions across levels and boundaries to build networks that enhance performance.

Vertical Dyadic Linkage
Emphasizes importance of the dyad formed by the leader with each subordinate. Leaders develop unique working relationships with each member and by so doing, they create in-groups and out-groups. Two kinds of relationships occur among leaders and followers – in- and out-group. How does a leader create in-groups and out-groups? How do these relationships affect the types of power and influence tactics leaders use? By focusing on the relationship between a leader and each follower, VDL research found great variance of leader style and impact within a group of followers.

In-Group vs. Out-Group Followers with strong social ties to their leader in a people-oriented relationship characterized by high mutual trust, exchange, loyalty, and influence. Leader uses expert, referent, and reward power. Leaders have more influence but can’t use legitimate or coercive power Invited to decision making, given additional responsibility, have greater access to the leader. Experience mutual influence and collaborative effort Leader grants special favors Have certain obligations Followers with little or no social ties to the leader in a strictly task-oriented relationship characterized by low exchange, lack of trust and loyalty, and top-down influence. Leaders use reward, legitimate, and coercive power. Need only comply with formal role requirements. Such compliance leads to standard benefits for the job and no more. Managed according to the employment contract. Receive little inspiration, encouragement, or recognition Does not experience positive relationships

Leader-Member Exchange Theory
Extension of VDL Attempts to understand the quality of each dyadic relationship and its effects on organizational outcomes over time. What are the attributes of high-quality relationships? Which influential factors and leader behaviors enhance high quality leader-member exchange relationships? What are the effects of variance in the quality of relationships as revealed through research? To what extent does bias affect the quality of relationships between leaders and followers, and how does it influence their affective, behavioral, and organization-related performance?

Attributes of High Quality LMX Relationships
Greater levels of leader support and guidance, higher levels of follower satisfaction and performance, wide latitude of discretion for followers, and lower levels of follower turnover. A favorable relationship is more likely when the follower is perceived to be competent and dependable, and the follower’s values and attitudes are similar to those of the leader Impression Management: A follower’s effort to project a favorable image in order to gain an immediate benefit or improve long-term relationships. Ingratiation – Effort to appear supportive, appreciative, and respectful. Self-Promotion – Effort to appear competent and dependable

Effects of High Quality LMX Relationships
Performance ratings Turnover Ratings of organizational climate Job performance Benefits to the in-group member Benefits to the leader Obligations of the leader Obligations of the in-group member

Partnership Building Can leaders develop positive relationships with a large number of subordinates? Leaders can develop a unique, beneficial relationship with each subordinate and provide all employees with access to high quality leader-member exchanges.

Systems and Networks Leader dyads can be expanded to larger systems.
Leaders should build networks of one-on-one relationships and create positive relationships with as many people as possible.

Followership

Definition One who subscribes to the teachings of another; an attendant, servant or subordinate; one who emulates …or agrees with another; one who accepts guidance or leadership of another (The American Heritage Dictionary). A follower is a person who is being influenced by a leader. Followership is an interactive role individuals play that complements the leadership role and is equivalent to it in importance for achieving organizational goals. Degree of enthusiasm, cooperation, effort, active participation, task competence, and critical thinking

Examples of Effective Followership
Demonstrating job knowledge and competence while working without close supervision and completing tasks on time. Demonstrating independent critical thinking by developing one’s own opinions and ideas that show inventiveness and creativity. Showing initiative in taking on responsibilities, participating actively, seeing tasks through to completion, and taking responsibility for one’s own career development. Speaking up frequently to offer information, share viewpoints, or take issue with decisions or actions that may be unethical or ill-advised. Exerting influence on the leader to help the leader avoid costly mistakes. Demonstrating a concern for both performance and supportive friendly atmosphere within the work group.

Examples of Ineffective Followership
Witholding effort Allowing someone else to make the decision for which they are responsible and readily do whatever they are told. Averting their eyes from wrongdoing rather than stopping it. Unwilling to disturb the status quo to do something worthwhile Expecting training and development to be served to them.

Follower Influencing Characteristics
Follower power Expert power Referent power Position power – information, location, access Follower locus of control Follower education and experience

How to be an effective follower?
Offer support Take initiative Play counseling and coaching roles to the leader, when appropriate Raise issues/concerns when necessary Seek and encourage honest feedback from the leader Clarify your role and expectations

How to be an effective follower?
Show appreciation Keep the leader informed Resist inappropriate influence of leader

Attribution Theory, Biases, & Self-Management

Attribution Theory Attribution: how we explain other people’s behavior
Is behavior internally or externally determined? External attributions – external cause Sally has low performance because her machine is old Internal attributions – internal cause Bill has low performance because he is lazy

Theory and Individual Behavior
Attribution of Cause Interpretation Observation Theory and Individual Behavior External Internal Distinctiveness Consensus Consistency High Low External Prentice Hall, 2001 Chapter 5

Biases Fundamental Attribution Error: Tendency to explain other people’s behavior with internal attributions and to underemphasize plausible situational causes of the behavior in question Self-Serving Bias: The tendency to deny personal responsibility for poor performance but to accept personal responsibility for high performance when explaining our own behavior The type of exchange relationship influences the leader’s interpretation of the follower’s behavior

Self-Management A set of strategies a person uses to influence and improve her behavior. See table 5-4 for a list of self-management strategies. Superleadership: The process of developing self-leadership in others.

Some Suggestions for Effective Leader Feedback
Take a supportive, problem solving approach Stay calm and professional Avoid a rush to judgment State the deficiency in specific terms Explain the negative impact of ineffective behavior Help the follower identify reasons for poor performance and suggest remedies for change Reach agreement on specific action plans Summarize the discussion and verify agreement

Monitoring and Reviewing Progress

Monitoring & Reviewing Progress
Involve gathering information about: The progress of the work The success of projects or programs The performance of individual subordinates The quality of products or services The concerns of customers Changes in the external environment

When monitoring is insufficient:
Failure to detect problems before they become serious Declining quality Low productivity Employee dissatisfaction Customer dissatisfaction Projects behind schedules Customer preferences New technologies

When monitoring is insufficient:
Unable to provide recognition Unable to identify subordinates who need help Unable to evaluate performance of subordinates Unable to determine a sound basis to allocate rewards

Requirements for Effective Monitoring
Network of contacts Organizational systems such as Information systems and control systems Formal goal setting programs such as MBO Good relations with subordinates

Monitoring is especially important if
Subordinates are inexperienced and unskilled Mistakes and accidents would be expensive Task is difficult and complex Interdependence is high Disruptions are likely

Forms of Monitoring Observation Reading reports
Inspecting quality of product samples Surveying customer/employees Holding meetings – Progress review meetings

Progress Review Meetings
Facilitate correction of performance problems Help a managers to determine if a a subordinate needs help Improve manager-subordinate communication Help assess if goals and plans are realistic

Progress Review Meetings
Timing of meetings Preparation for meetings Identifying reasons for unsatisfactory progress Situational causes Deficiencies in subordinate skill or motivation

Procedures for Progress Review Meetings
Review purpose and show enthusiasm Begin with a high priority goal Ask the subordinate to summarize progress on the goal Explore any disagreements about progress Explore reasons why progress is not on target Consider potential problems that could delay progress Ask the subordinate to suggest corrective actions Record level of progress and agreements on action steps Summarize the discussion

Chapter 6 Power & Influence

A Model of Power and Influence
Manager Power Influence Behavior Outcomes Manager Skills

Outcomes of Influence Attempts
Commitment: Most successful; the person is enthusiastic about carrying out the request and makes a maximum effort. Compliance: Partially successful; the person is apathetic about carrying out the request and makes only a minimal effort. Resistance: Unsuccessful; the person is opposed to carrying out the request and tries to avoid doing it.

Influence Processes Instrumental compliance: Carries out the requested action to obtain a tangible reward or avoid a punishment controlled by the agent. Internalization: Carries out the requested action because it appears to be intrinsically desirable and correct in relation to his values, beliefs, and self image. Personal identification: Imitates the agent’s behavior or adopts the same attitudes to please the agent and to be like the agent.

Power The potential of one person (agent) to exert influence on another person (target). Stems from the dependency of the target person on the agent person Sources of Power Personal Position Determines whether influence attempts will be successful.

Position Power Legitimate Power: The lawful right to make a decision and expect compliance. Reward Power: The perception that the manager controls important rewards Coercive Power: Power to punish for noncompliance. Information Power: Control over access to and distribution of information. Ecological Power: Control over the physical environment, technology, and organization of work.

Personal Power Expert Power: Power stemming from specialized knowledge and skills. Referent Power: Desire of others to please a manager toward whom they have a strong feelings of affection, admiration, and loyalty.

Influence Skills Diagnostic skills: Execution skills:
E.g. empathy, insight, social sensitivity Help select an appropriate influence tactic Analyze the situation and understand the motives and values of the target persons Execution skills: Persuasiveness, decisiveness, bargaining ability, and acting ability

Influence Tactics Legitimating Tactic Rational Persuasion
Exchange Tactic Personal Appeals Inspirational Appeal Consultation Pressure Tactic Coalition Tactic

Legitimating Tactics Request based on legitimate power
Forms of behavior that establish the legitimacy of a request: Providing evidence of prior precedent Showing consistency with organizational policies Showing consistency with the duties and responsibilities of the person’s position Indicating that the request endorsed by higher management Usually results in minimal compliance

Rational Persuasion Involves use of expertise to present logical arguments, backed by factual evidence Appropriate when target person has compatible goals Identify target person’s goals first Requires technical knowledge, being recognized as credible and trustworthy, and skills in persuasive speaking

Inspirational Appeal Attempt to arouse emotions as the mechanisms for motivating commitment Involves using target person’s values and ideals to motivate him to do a task Requires insight into the values, hopes, and fears of the target person/s and communication skills Research on transformational leaders

Consultation Attempt to increase the motivation of a person by allowing him to participate in making the decision. Appropriate when the target has compatible goals

Exchange Tactics Involves the explicit or implicit offer of rewards for doing what is requested Appropriate when the target is indifferent or reluctant First identify which of the rewards controlled by you are desired by the target It may not be clear what rewards you control Maintain credibility Use incentive sparingly

Personal Appeals Involves asking s.o. to do a favor based on friendship or loyalty Requires considerable referent power and the request should be perceived as important to the manager Use sparingly Make an effort to maintain strong personal relationships

Ingratiation Involves behavior that makes s.o. feel better about you
When sincere, strengthen friendship and provide a strong basis for influence

Pressure tactics Include coercion, intimidation, and pushy behavior
Compliance is greatest if threat is seen credible Use as last resort – serious side effects

Coalition Tactics Indirect influence attempt which involves getting the support of other people Coalition partners can be active or passive Can be used in combination with other tactics

New Tactics Collaboration: Involves reducing the difficulty or costs of carrying out a request Apprising: Involves explaining why a request is likely to benefit the target

Chapter 8 Contingency Theories

Contingency Theories “When and under what circumstances is a particular leadership style preferable to others?” There is no one best way to lead Leadership effectiveness = f(leader, situation) Leaders are most effective when they make their behavior contingent upon situational forces. Goal: To understand how different situations affect leadership success.

Contingency Theories Fielder’s Contingency Theory Path-Goal Theory
Substitutes for Leadership Cognitive Resources Theory Multiple Linkage Model 24

Fiedler's Contingency Theory
Assumption: Good leadership depends on the match between leadership style and situational demands. Leadership style - Least-Preferred Coworker Scale Relationship-motivated leader is concerned with people OR Task-motivated leader is primarily motivated by task accomplishment. Leadership style is part of one’s personality. Leadership Success <= Putting the styles to work in situations for which they are good fits. 25

Fiedler’s Contingency Theory
1. Understanding the leadership style: Determined by Least-Preferred Coworker (LPC) Scale. High LPC leader: Tendency to a relationship-oriented leadership style Low LPC leader: Tendency to a task-oriented leadership style. 2. Diagnosing the leadership situation: to identify the extent of control a situation allows a leader: Quality of leader-member relations (good-poor) Degree of task structure (high-low) Amount of position power (strong-weak) 27

Fiedler’s Contingency Theory
3. Matching the leadership style and the situation Neither the task-oriented nor the relationship-oriented style is effective all the time. A task-oriented leadership will be most successful in either very favorable or very unfavorable situations. A relationship-oriented leadership will be most successful in situations of moderate control

Fiedler’s Contingency Model
GOOD POOR HIGH LO W HIGH LOW S W Leader- Member Relations Task Structure Position Power Kinds of Leadership Situations Very Favorable Unfavorable I II III IV V VI VII VIII 1 Relationship-oriented managers most effective in IV, V, VI, VII. Task-oriented managers most effective in I, II, III or VIII.

Implications Improve leader-member relations Initiate structure
Exercise more position power

Path-Goal Theory An effective leader clarifies paths through which subordinates can achieve goals and increases the rewards they value. Increasing Rewards: The leader talks with subordinates to learn which rewards are important to them. Then, aligns these rewards with task accomplishment. Path Clarification: The leader helps subordinates learn the behaviors that lead to task accomplishment and rewards. 34

Leader matches follower’s needs to rewards if work
Path Clarification Increase Rewards Leader defines what follower must to do attain work outcomes Leader learns follower’s needs Leader matches follower’s needs to rewards if work outcomes are accomplished Leader clarifies follower’s work role Follower has increased knowledge and confidence to accomplish outcome Leader increases value of work outcomes for follower Follower displays increased effort and motivation Organizational work outcomes are accomplished 42

Path-Goal Theory Four leadership Styles:
Directive leadership: Giving directions, scheduling their work, establishing performance standards. Supportive leadership: Making work pleasant, being friendly, showing concern. Achievement-oriented leadership: Setting challenging goals, displaying confidence, expecting high levels of performance from subordinates. Participative leadership: Involving subordinates in decision making. Types of behavior that every leader can adopt depending on the situation.

Path-Goal Theory Choice depends on work environment –task structure, formal authority and work group- and subordinates’ personal characteristics -authoritarianism, locus of control, ability. Managerial Implications: Leaders should switch their behavior to match the situation. Managers must use the leadership style that complements the needs of the situation. Common Managerial Situations: job assignments are unclear - Directive Leadership worker self-confidence is low - Supportive Leadership performance incentives are poor - Participative Leadership task challenge is insufficient - Achievement-Oriented Leadership

Substitutes for Leadership
Aspects of the work setting and the people involved that can reduce the need of a leader’s personal involvement or neutralize the effect of a leader. Organizational Variables Group cohesiveness Formalization Task characteristics Highly structured task Automatic feedback Intrinsic satisfaction 47

Substitutes for Leadership
Subordinate characteristics Professionalism Training/experience 48

The Multiple Linkage Model
Four types of variables: Leader behavior Intervening variables Criterion variables Situational variables Focuses on the performance of a work group

Intervening Variables
Task commitment Ability and role clarity Organization of the work Cooperation and mutual trust Resources and support External coordination

Key Ideas Intervening variables determine group performance.
Group leader can increase/decrease group effectiveness through influencing intervening variables. Aspects of the situation influence the current level intervening variables independent of leader behavior. Leaders can improve group performance by correcting any deficiencies in the intervening variables. Leaders should make the conditions more favorable over the long-run.

Situational Variables
Formal reward system Intrinsically motivating job Prior training and experience of subordinates Task structure Type of technology Competitive strategy Size of the group Group homogeneity Formal budget systems Inventory systems Organization structure

Leader Actions Offer special incentives Set specific goals
Reorganize activities Build and emphasize common group identity Obtain needed resources Improve external coordination

Situational Variables - Neutralizers
Leader’s position power Organizational policies Technology Legal-contractual restrictions

Cognitive Resources Theory
Do situations arise in which leader’s intelligence and other cognitive abilities can be a disadvantage? How does stress impact a leader’s effectiveness? Two leader characteristics: intelligence and experience Contingency variable: stress Propositions: Leader’s intelligence can contribute positively to group performance when the leader is directive. Stress moderates the relationship between intelligence and performance: When the situation is not stressful, leader’s intelligence is an asset . In times of high stress leader’s intelligence can either detract from or have no impact on group performance. A leader’s experience is positively related to group performance in high-stress situations but not in low-stress situations. Implication: The role of stress in leadership situations must be considered.

Charismatic and Transformational Leadership
Chapter 9 Charismatic and Transformational Leadership

Contributions Look at different aspects of leaders
Highlight the importance of followers’ emotions Focus on the leaders at top levels of organizations

Charisma Divine gift of grace
Max Weber => a type of influence based on exceptional qualities of an individual person heroic acts advocating revolutionary mission Today =>endowment of exceptional qualities and high self-esteem and referent power from followers. Definition: A distinct social relationship between the leader and follower in which the leader presents a revolutionary idea or ideal which goes beyond the immediate or the reasonable; while the followers accept this course of action not because of its rational likelihood of success but because of an effective belief in the extraordinary qualities of the leader.

Locus of Charisma What causes a leader to be perceived as charismatic?
Situation Leader’s qualities Interaction of both

Personal Meaning Self-belief Legacy Selflessness
Cultural heritage and traditions Political and social causes Faith and spirituality Values Personal interests

Behavioral Components
The discrepancy between the status quo and future vision Vision articulation Role modeling Use of unconventional strategies A realistic assessment of resources and constraints

Charismatic Leadership
An attribution made by followers about leaders who exhibit certain personal traits, abilities, and behaviors and who have unusually strong influence on followers’ emotions, values, beliefs, attitudes, and behaviors.

Hi self-esteem Experienced Meaningfulness Of work Hi emotional Involvement & attachment Hi trust, esteem, Acceptance, Loyalty to leader Effects on Followers Hi satisfaction with Leader, Work, Organization Hi individual And group performance Hi commitment

Assertive, dynamic, outgoing, and forceful Communication & Rhetorical skills Self-confidence, Self-assurance Key Skills, Characteristics Inspire trust Vision Referent & Expert power Hi risk orientation Need for power

Processes Personal identification Internalization
Social identification Social contagion

Consequences of Charisma
Negative charismatics: Personalized power orientation Emphasize personal identification Ideology used to serve personal objectives Dominate followers Centralized authority Information controlled Positive charismatics Socialized power orientation Emphasize internalization of values Devotion to ideology emphasized Authority delegated Information shared participation encouraged Negative consequences – see Table 9-2

Other Topics Close and Distant Charisma Routinization of charisma
Transfer charisma to successor Create and administrative structure Embed it in the culture

Transformational leadership
Process of appealing to moral values of followers in an attempt to raise their consciousness about ethical issues and to mobilize their energy and resources to reform institutions

Transformational Leadership
Defining characteristics Followers feel trust, admiration, loyalty, and respect Followers do more than they initially expected Followers are transformed Leader behavior Make followers aware of the importance of task outcomes Make followers go beyond their self-interest for the sake of the organization Activate followers’ higher order needs Bass’ typology – idealized influence, individualized consideration, inspirational motivation, intellectual stimulation Influence processes Internalization (primary) Personal identification Facilitating Conditions - Any situation

Transformational Leader Behaviors
Creation and articulation of vision Role modeling Building teamwork and encouraging acceptance of group goals High performance expectations Personalized leader-member exchange Empowerment

Transformational Leader Characteristics
See themselves as change agents Are visionaries Are risk takers Capable of articulating a set of values Possess exceptional cognitive skills Show sensitivity to needs of others Are flexible and open to learn form experience

Differences between Transformational and Charismatic Leadership
Charismatics: perceived as extraordinary, unconventional vision, unusual strategies and behavior, personal identification and impression management, personal risk taking and self-sacrifice, rare and emerge under certain conditions hands on style and followers are dependent on them, Transformational leaders: inspiring, empowering, and developing followers emphasize internalization more than personal identification create followers less dependent on the leader universally relevant for all types of situations

Transactional Leadership
A leader who clarifies subordinates’ role and task requirements, initiates structure, provides rewards, and displays consideration for subordinates. Appeals to self-interest

Theories of Charismatic Leadership
Attribution Theory of Charismatic Leadership Self-Concept Theory of Charismatic Leadership Psychodynamic processes Social Contagion Close and distant charisma Routinization of charisma

Attribution Theory of Charismatic Leadership
Charisma is an attributional phenomenon Leader behaviors and skills Aspects of the situation Leader behavior and skills: Advocate a vision that is different from the status quo Act in unconventional ways Make self-sacrifices, take personal risks and incur high costs Appear confident Use visioning and persuasive appeals Skills and expertise to assess the environment

Attribution Theory of Charismatic Leadership
Influence Processes Personal identification: desire to please and imitate the leader Internalization: adopting the leader’s ideals and goals and become inspired to attain them. Facilitating Condition Follower disenchantment

Self-Concept Theory of Charismatic Leadership
Explains how charismatic leaders behave, their traits and skills, and the conditions in which they are likely to emerge Defining charisma: Has profound and unusual effects on followers Beliefs are perceived as correct Followers willingly obey Follower feel affection toward the leader Followers emotionally involved in the mission Followers set high performance goals Followers believe they can contribute to organizational goals Traits: Strong conviction in beliefs High self-confidence High need for power

Behaviors: Articulate an appealing vision Use strong, expressive forms of communication Take personal risks and make self-sacrifices Communicate high expectations Express confidence Role model Manage impressions Build identification with the group Empower followers Influence Processes Social identification: Followers define themselves in terms of membership in a group or organization Internalization Augmenting individual and collective self-efficacy Personal identification

Facilitating Condition: Leader’s vision congruent with follower values Task roles can be defined ideologically Trouble, panic, anxiety

Psychodynamic Processes
Aim to explain the unusual influence of some charismatic leaders Make use of psychodynamic processes such as regression, transference, and projection

Social Contagion Aim to explain how charismatic attributions are made by people who do not directly interact with the leader Focuses on influence processes that occur among the followers Social contagion: Charismatic leader can activate heroic image of followers and cause followers to behave with unusual devotion to a great cause. When others observe this, their heroic self-image may also be activated replicating observed behavior. Extreme devotion to leader and cause becomes contagious and spreads

Build own image In followers’ eyes Advocates moral Mission &Vision Makes Inspirational speeches Behaviors of charismatic leaders Takes risks Role models Behavior Uses frame Alignment to Guide followers

Follower Characteristics Leader Characteristics
Task Characteristics Have moral element May have implications On how people do things and think Follower Characteristics Distress, anxiety, uncertainty, disenchantment Enhancers Of Charisma Leader Characteristics High status, rank, experience

Leading Teams & Decision Making Groups
Chapter 11 Leading Teams & Decision Making Groups

Agenda Leadership roles in different types of teams Team building
Leading decision making groups Case: Building maintenance

Types of Teams Functional Teams Cross-Functional Teams
Self-Managed Teams Self-Defining Teams Executive Teams Virtual Teams

Functional Teams Long duration Stable membership
Appointed leader with considerable authority Effective leadership involves influencing inputs, processes, and outcomes Task commitment Member skills and role clarity Performance strategies Trust and cooperation Resources and political support External coordination and adaptation

Cross-Functional Teams
Consist of representatives from various functional areas. May include outsiders Ex. New product development, new project development Lateral tools Usually temporary Dual responsibility of team members

Cross-Functional Teams
Benefits Drawbacks More effective when they have an appointed leader. Leader Skills: Technical skills Administrative skills Interpersonal skills Cognitive skills Political skills Leadership behaviors: Envisioning Organizing Social integrating External spanning

Self-Managed Work Teams
Members from the same function Authority of the team leader/manager is shared by team members Sometimes they may produce the entire product. Members usually rotate tasks Two kinds of leadership roles: Internal leadership Shared or rotated Decisions related to performing the task, personnel decisions, purchasing some materials, etc. External leadership

Leading Decision Groups
Potential advantages of group decisions Potential disadvantages of group decisions

Presentation of the Problem
Be brief Share essential information Use situational terms “How can we get people to stop their excessive use of xerox machines?” “How can we reduce duplicating costs?” Avoid suggesting causes or solutions “How can we use incentives to increase employee productivity?” “How can we increase employee productivity?” Invoke mutual interests “How can we hold down production costs?” “How can we protect our jobs by keeping production costs below those of competitors?” Specify one primary objective “How can we reduce errors and delays in deliveries to customers?”

Problem Diagnosis Confusing facts with opinions or assumptions
Confusing symptoms with causes Looking for scapegoats to blame Proposing solutions before the problem is clearly understood Encourage alternative problem statements Evaluate alternative problem statements

Solution Generation Focus on the present Encourage novel solutions
Separate idea generation and evaluation (brainstorming, nominal group technique)

Solution Evaluation Common Problems:
Incomplete participation Groupthink Hasty decisions Allow ample time to evaluate consequences Facilitate participation Encourage positive restatement and idea building List advantages and disadvantages Identify costs and benefits Assign devil’s advocates

Solution Choice Major issue: avoiding polarization
Discourage polarization Encourage an integrative solution Encourage experimentation Hold a second chance meeting Equalize participation Encourage consensus Clarify responsibilities for implementation

Characteristics of a Team
Committed to a common purpose or a goal Members have clear roles and responsibilities that are interdependent Has communication structure that allows sharing of information Members have a sense of mutual accountability

Roles of Team Members Role
Role ambiguity: The members are uncertain about their roles. Role overload/underload: Too much/little is expected from members. Role conflict: Member is unable to comply with his/her role. Conflicting expectations from a supervisor Conflicting expectations from different people. One’s values and needs conflict with role expectations. Expectations of two or more roles conflict.

Roles of Team Members Task roles Group maintenance roles
Self-oriented roles

Formal Approaches to Team Building
Examine three questions: What do we do well? What areas need improvement? What are the barriers to improvement? Role analysis technique Role negotiation Responsibility charting

Informal Approaches to Team Building
Trust Common goals Open honest communication Creating opportunities for group interaction

BA4135 LEADERSHIP THEORY & APPLICATION

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