1. Leadership in organisational settings
Chapter 12
Leadership in organisational settings

2. Learning objectives
12.1 Define leadership and shared leadership 12.2 List the main competencies of effective leaders and discuss the limitations of the competency perspective of leadership 12.3 Discuss the key elements of path–goal theory, Fiedler’s contingency model and leadership substitutes 12.4 Describe the four elements of transformational leadership, and distinguish this theory from transactional and charismatic leadership 12.5 Describe the implicit leadership perspective 12.6 Describe ethical leadership 12.7 Discuss similarities and differences between the leadership styles of women and men

3. Naomi Simson, Founder of RedBalloon
Naomi Simson had a vision: to create a gifts company that is about memories, not possessions. Through passion, vision and hard work she turned her dream into a successful business. RedBalloon has sold over 1.3 million experiences, attracted over 2500 corporate clients and Simson received the National Telstra Business Women’s award for innovation

4. Leadership Defined
Leadership is the ability to influence, motivate and enable others to contribute toward the effectiveness of the organisations of which they are members
Points for discussion:
Ask the students to name great leaders (business, political, social, spiritual).
What makes them great leaders?
What is leadership?

5. Shared Leadership
The view that leadership is broadly distributed rather than assigned to one person
Employees are leaders when they champion change in the company or team
Shared leadership calls for:
Formal leaders willing to delegate power
Collaborative culture (employees support each other)
Employee ability to influence through persuasion

6. Perspectives of Leadership
Competency perspective
Contingency perspective
Implicit leadership perspective
Transformational perspective

7. Competency Perspective
Competencies: personal characteristics that lead to superior performance in a leadership role (e.g. skills, knowledge, values)
Early research: very few ‘traits’ predicted effective leadership
Emerging view: several competencies now identified as key influences on leadership potential and of effective leaders
Teaching note:
The competency perspective is an improvement of the ‘great man theory’ which was popular before World War II.
See

8. Eight Leadership Competencies
Self-concept
Drive
Positive self-evaluation
High self-esteem and self-efficacy
Internal locus of control
Inner motivation to pursue goals
Inquisitiveness, action-oriented
Integrity
Truthfulness
Consistency in words and actions
Personality
Extroversion, conscientiousness (and other traits)

9. Eight Leadership Competencies continued
Cognitive/
practical intelligence
Above average cognitive ability
Able to solve real-world problems
Knowledge of the business
Understand external environment
Aid intuitive decision making
Leadership motivation
High need for socialised power to achieve organisational goals
Emotional intelligence
Perceiving, assimilating, understanding, and regulating emotions

10. Authentic Leadership
How well leaders are aware of, feel comfortable with and act consistently with their self-concept
As people learn more about themselves, they gain a greater understanding of their inner purpose, behave consistently with their self-concept and their value system

11. Competency Perspective Limitations
Implies a universal approach
Alternative combinations of competencies might work just as well
Assumes leadership is within the person
But leadership is also about relations with followers
Competencies refer to leadership potential, not performance

12. ‘Tiger Women’: New Leaders in China
Zhang Lan runs the successful South Beauty empire. As a child she learned to chi ku (eat bitterness), a term that means enduring hardship. After saving money in Toronto, she returned to China and invested her savings in the restaurant business, recognising a niche for high-end Western style restaurants. Zhang now owns over 40 restaurants around China

13. Path–Goal Leadership Originated with expectancy theory of motivation
Paths = employee expectancies
Goals = employee performance
States that effective leaders ensure that employees who perform their jobs well receive more valued rewards than those who perform poorly
Points for discussion:
Ask students to describe the expectancy theory and the goal-setting theory before you explain the path–goal theory.
Teaching note:
Contingency is an OB anchor, and in this theory we can see an example of it.

14. Path–Goal Leadership Styles
Directive
Provide psychological structure to jobs
Task-oriented behaviours
Supportive
Provide psychological support
People-oriented behaviours
Participative
Encourage/facilitate employee involvement
Achievement-oriented
Encourage peak performance through goal setting and positive self-fulfilling prophecy
Points for discussion:
Which leadership style works better? It depends. The next slide shows on what.

15. Path-Goal Leadership Model

16. Path-Goal Contingencies

17. Other Contingency Leader Theories
Situational leadership model
Effective leaders vary style with follower ‘readiness’
Leader styles: telling, selling, participating and delegating
Popular model, but lacks research support
Fiedler’s contingency model
Leadership style is stable, based on personality
Best style depends on situational control
Theory has problems, but uniquely points out inflexibility of leadership style

18. Leadership Substitutes
Contingencies that limit a leader’s influence or make a particular leadership style unnecessary
E.g. training and experience replace task-oriented leadership
Research evidence: substitutes help, but do not completely substitute for real leadership

19. Transformational versus Transactional Leaders
Transformational leaders
Leading—changing the organisation to fit the environment
Change agents
Transactional leaders
Confusing definitions, but originally about seeking employee compliance through rewards, punishment and negotiation
Managing—achieving current objectives more efficiently
Link job performance to rewards
Provide staff with necessary resources
Relates to contingency leadership theories (e.g. path–goal)
Pre-Lesson Activity:
Activity 12.2: What is your boss's preferred leadership style?
See Connect website
This will allow you to discuss the differences between transformational and transactional leadership.

20. Transformational versus Charismatic Leaders
Some leadership models say charismatic leadership is essential for transformational leadership
Emerging view: charisma differs from transformational leadership
Charisma is a personal trait that provides referent power
Does not necessarily attempt to change the organisation
Transformational leadership is a set of behaviours to bring about change

21. Transformational Leadership Model
Teaching note:
A good and popular example is Steve Jobs. You can show this clip, narrated by Jobs, to discuss the leaders shown in it and Jobs’s transformational leadership:

22. Transformational Leadership Elements
Create a strategic vision
Image of company’s attractive future
Motivates and bonds employees
Leader champions the vision
Communicate the vision
Frame message around a grand purpose
Share mental model of the future
Use symbols, metaphors, stories
Teaching note:
You can continue to illustrate the TL Model through the example of Steve Jobs

23. Transformational Leadership Elements continued
Model the vision
Walk the talk
Symbolise/demonstrate the vision through behaviour
Employees trust leader more
Build commitment to the vision
Increased through communicating and modelling the vision
Increased through employee involvement in shaping the shared vision

24. Evaluating Transformational Leadership
Transformational leadership is important
Higher employee satisfaction, performance, organisational citizenship, creativity
Transformational leadership limitations
Some models have circular logic
Defines transformational leaders by their success rather than their behaviour (result: no predictive value)
Universal theory
Need a contingency-oriented theory
Recognise differences across cultures

25. Implicit Leadership Perspective
Follower perceptions of characteristics of effective leaders
Leadership prototypes
Preconceived image of effective leader, used to evaluate leader effectiveness
Romance of leadership effect
Amplify effect of leaders on organisational results
Fundamental attribution error
Need for situational control
Video clip:
To discuss the role of the followers in creating a leader, you can show this youtube clip:

26. Ethical Leadership
Ethical leadership is vital for organisational conduct and effectiveness
Ethical leadership is determined by individual characteristics and demonstrated through leaders’ behaviours
A strong sense of social obligation, an awareness of the impact of one’s behaviour on others and a concern for followers are at the heart of ethical leadership
They are characterised by four virtues: prudence, courage, temperance and justice

27. Cultural Issues in Leadership
Societal cultural values and practices affect leaders
Shape leaders’ values and norms
Influence decisions and actions
Shape follower prototype of effective leaders
Some leadership styles are universal, others differ across cultures
‘Charismatic visionary’ seems to be universal
Participative leadership works better in some cultures than others

28. Gender Issues in Leadership
Male and female leaders have similar task- and people-oriented leadership
Participative leadership style is used more often by female leaders
Evaluating female leaders
Still receive negative evaluations as leaders due to prototypes and gender stereotypes
But evidence that they are good at emerging leadership styles (coaching, teamwork)

29. Summary
Leadership is one of the most researched, and possibly the most complex, topics in organisational behaviour
This has resulted in an enormous volume of leadership literature, most of which can be organised into four perspectives: competency, contingency, transformational and implicit
Further attention needs to be given to the ethical aspects of leadership, as well as to cultural and gender issues

30. Leadership in organisational settings
Chapter 12
Leadership in organisational settings