1. Kelli J. Schutte William Jewell College Robbins, Judge, and Vohra Organizational Behavior 14th Edition Leadership 12-0 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

2. Chapter Learning Objectives  After studying this chapter, you should be able to: –Define leadership and contrast leadership and management. –Summarize the conclusions of trait theories of leadership. –Identify the central tenets and main limitations of behavioral theories. –Assess contingency theories of leadership by their level of support. –Compare and contrast charismatic and transformational leadership. – Define authentic leadership and show why effective leaders exemplify ethics and trust. –Demonstrate the role mentoring plays in our understanding of leadership. – Address challenges to the effectiveness of leadership. –Assess whether charismatic and transformational leadership generalize across cultures. 12-1 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

3. What Is Leadership?  Leadership –The ability to influence a group toward the achievement of goals  Management –Use of authority inherent in designated formal rank to obtain compliance from organizational members  Both are necessary for organizational success 12-2 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

4. Trait Theories of Leadership  Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders  Not very useful until matched with the Big Five Personality Framework  Essential Leadership Traits –Extroversion –Conscientiousness –Openness –Emotional Intelligence (Qualified)  Traits can predict leadership, but they are better at predicting leader emergence than effectiveness. 12-3 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

5. Behavioral Theories of Leadership  Theories proposing that specific behaviors differentiate leaders from nonleaders  Differences between theories of leadership: –Trait theory: leadership is inherent, so we must identify the leader based on his or her traits –Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders 12-4 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

6. Important Behavioral Studies 12-5 Initiating structure Consideration Ohio Employee-oriented Production- oriented Michigan Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

7. Contingency Theories  While trait and behavior theories do help us understand leadership, an important component is missing: the environment in which the leader exists  Contingency Theory adds this additional aspect to our understanding leadership effectiveness studies  Three key contingency models for leadership: –Fiedler’s Model –Hersey and Blanchard’s Situational Leadership Theory –Path-Goal Theory 12-6 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

8. Fiedler Model  Effective group performance depends on the proper match between leadership style and the degree to which the situation gives the leader control. –Assumes that leadership style (based on orientation revealed in LPC questionnaire) is fixed  Considers Three Situational Factors: –Leader-member relations: degree of confidence and trust in the leader –Task structure: degree of structure in the jobs –Position power: leader’s ability to hire, fire, and reward  For effective leadership: must change to a leader who fits the situation or change the situational variables to fit the current leader 12-7 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

9. Graphic Representation of Fiedler’s Model 12-8 E X H I B I T 12-1 Used to determine which type of leader to use in a given situation Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

10. Assessment of Fiedler’s Model  Positives: –Considerable evidence supports the model, especially if the original eight situations are grouped into three 12-9  Problems: –The logic behind the LPC scale is not well understood –LPC scores are not stable –Contingency variables are complex and hard to determine Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

11. Situational Leadership Theory  A model that focuses on follower “readiness” –Followers can accept or reject the leader –Effectiveness depends on the followers’ response to the leader’s actions –“Readiness” is the extent to which people have the ability and willingness to accomplish a specific task 12-10 Ability to followWillingness to FollowLeadership Behavior UnableUnwillingGive clear and specific directions UnableWillingDisplay high task orientation AbleUnwillingUse a supportive and participatory style AbleWillingDoesn’t need to do much Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

12. House’s Path-Goal Theory  Builds from the Ohio State studies and the expectancy theory of motivation  The theory: –Leaders provide followers with information, support, and resources to help them achieve their goals –Leaders help clarify the “path” to the worker’s goals –Leaders can display multiple leadership types  Four types of leaders: –Directive: focuses on the work to be done –Supportive: focuses on the well-being of the worker –Participative: consults with employees in decision making –Achievement-Oriented: sets challenging goals 12-11 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

13. Vroom and Yetton’s Leader-Participation Model  How a leader makes decisions is as important as what is decided  Premise: Situational variables interact with leadership attributes to impact the behavior of the leader. –Leader behaviors must adjust to the way tasks are structured in the organization. –This is a normative model that tells leaders how participative to be in their decision making of a decision tree Five leadership styles Twelve contingency variables 12-12 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

14. Leader-Member Exchange (LMX) Theory In-Group Members are similar to leader In the leader’s inner circle of communication Receives more time and attention from leader Gives greater responsibility and rewards 12-13 Out-Group Managed by formal rules and policies Receive less of the leader’s attention / fewer exchanges More likely to retaliate against the organization Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

15. Charismatic Leadership  Charisma means gift in Greek 12-14 Vision Personal Risk Sensitivity to Followers Unconventional Behavior Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

16. Charismatic Leadership How do charismatic leaders influence followers? 12-15 Articulate a Vision Create a Vision Statement Create a new set of Values Demonstrate the Vision Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

17. Transformational Leaders  Inspire followers to transcend their self-interests for the good of the organization 12-16 Contingent Reward Management by Exception (active) Management by Exception (passive) Laissez-Faire Transactional Idealized Influence Inspirational Motivation Intellectual Stimulation Individualized Consideration Transformational Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

18. Leadership Model 12-17 Transaction Approaches Laissez-Faire Management by Exception Contingent Reward Transformational Approaches Individualized Consideration Intellectual Stimulation Inspirational Motivation Idealized Influence Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

19. Authentic Leaders Authentic leaders know who they are, what they believe in and value, and act upon those values and beliefs. Ethics and Leadership Leadership is not free from values. When we assess leadership, we must assess not just the goals themselves but also the means by which those goals are achieved. 12-18 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

20. Trust and Leadership  Trust – a psychological state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. –Key attribute associated with leadership –Followers who trust their leader will align their actions and attitudes with the leader’s behaviors/requests 12-19 Trust Desired Actions Desired Attitudes Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

21. How is Trust Developed? 12-20 Leadership Action: Integrity, Benevolence, Ability Trust Action: Risk Taking, Information Sharing, Group Effectiveness, and Productivity Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

22. Mentoring – Leading for the Future  Mentor: A senior employee who supports a less experienced employee. 12-21 Career Functions Helping the protégé gain skills and abilities Lobbying for the protégé to get better assignments Providing exposure to influential individuals in the organization Acting as a sounding board for ideas Psychological Functions Counseling the protégé to bolster his/her confidence Sharing personal experiences with the protégé Providing friendship and acceptance Acting as a role model Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

23. Finding and Creating Effective Leaders Selecting LeadersTraining Leaders 12-22 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

24. Global Implications  These leadership theories are primarily studied in English-speaking countries  GLOBE does have some country-specific insights –Indian employees want action-oriented and charismatic leaders. –Brazilian teams prefer leaders who are high in consideration, participative, and have high LPC scores –French workers want a leader who is high on initiating structure and task-oriented –Egyptian employees value team-oriented, participative leadership, while keeping a high-power distance –Chinese workers may favor a moderately participative style.  Leaders should take culture into account 12-23 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

25. Summary and Managerial Implications Leadership is central to understanding group behavior as the leader provides the direction. Extroversion, conscientiousness, and openness all show consistent relationships to leadership. Behavioral approaches have narrowed leadership down into two usable dimensions. Need to take into account the situational variables, especially the impact of followers. Research on charismatic and transformational leadership has made major contributions to our understanding of leadership. Leaders must be seen as authentic and trustworthy. Investment must be made in the future through mentoring and training leaders. 12-24 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e

26. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall 12-25 Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Organizational Behavior, 14e