Chapter Fourteen Leadership

Chapter Fourteen Outline Trait and Behavioral Theories of Leadership Trait Theory Behavioral Styles Theory Situational Theories Fiedler’s Contingency Model Path-Goal Theory Hersey and Blanchard’s Situational Leadership Theory

Chapter Fourteen Outline (continued) 14-1b Chapter Fourteen Outline (continued) From Transactional to Charismatic Leadership How Does Charismatic Leadership Transform Followers? Research and Managerial Implications Additional Perspectives on Leadership The Leader-Member Exchange (LMX) Model of Leadership Substitutes for Leadership Servant-Leadership Superleadership

Trait Theory 14-2a Leadership Traits: represent the personal characteristics that differentiate leaders from followers. Historic findings reveal that leaders and followers vary by - intelligence - dominance - self-confidence - level of energy and activity - task-relevant knowledge Contemporary findings show that - people tend to perceive that someone is a leader when he or she exhibits traits associated with intelligence, masculinity, and dominance - people want their leaders to be credible - credible leaders are honest, forward-looking, inspiring, and competent

Trait Theory (continued) 14-2b Trait Theory (continued) Gender and leadership - men and women were seen as displaying more task and social leadership, respectively - women used a more democratic or participative style than men, and men used a more autocratic and directive style than women - men and women were equally assertive - women executives, when rated by their peers, managers and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria

Behavioral Styles Theory 14-3 Ohio State Studies identified two critical dimensions of leader behavior. 1. Consideration: creating mutual respect and trust with followers 2. Initiating Structure: organizing and defining what group members should be doing University of Michigan Studies identified two leadership styles that were similar to the Ohio State studies - one style was employee centered and the other was job centered Blake and Mouton’s Managerial Grid represents four leadership styles found by crossing concern for production and concern for people Research shows that there is not one best style of leadership. The effectiveness of a particular leadership style depends on the situation at hand.

Skills and Best Practices: Tips for Improving Leader Effectiveness 14-4 Behavior Recommended Behaviors Listen Intensely listen to what others have to say. Determine the true cause of performance problems. Examine Think through problems from all perspectives. Do not play favorites and find solutions that benefit everyone involved. Assist Help others to learn from mistakes and errors. Develop Explain the rationale for decisions and implement fair policies and procedures. Encourage Provide employees with the resources needed to do a job. Gently push people to advance into more demanding roles. Recognize Praise people for their good work. Focus on the positive whenever possible. Source: “CEO’s Need to Listen, Examine, Assist,” The Arizona Republic, April 22, 2001, p D2.

Representation of Fiedler’s Contingency Model 14-5 Figure 14-1 Representation of Fiedler’s Contingency Model Situational Control High Control Situations Moderate Control Situations Low Control Situations Leader-member relations Task Structure Position Power Good Good Good High High High Strong Weak Strong Good Poor Poor Low High High Weak Strong Strong Poor Poor Low Low Strong Weak Situation I II III IV V VI VII VIII Optimal Leadership Style Task Motivated Leadership Relationship Motivated Leadership Task Motivated Leadership

House’s Path-Goal Theory 14-6 Figure 14-2 Employee Characteristics - Locus of control - Task ability - Need for achievement - Experience - Need for clarity Leadership Styles - Directive - Supportive - Participative - Achievement oriented Employee Attitudes and Behavior - Job satisfaction - Acceptance of leader - Motivation Environmental Factors - Employee’s task - Authority system - Work group

Hersey and Blanchard’s Situational Leadership Theory 14-7 Figure 14-3 Leader Behavior High Participating S3 Share ideas and facilitate in decision making Selling S2 Explain decisions and provide opportunity for clarification Relationship Behavior (supportive behavior) Delegating S4 Turn over responsibility for decisions and implementation Telling S1 Provide specific instructions and closely supervise performance Low Low Task Behavior High Follower Readiness High Moderate Low R4 R3 R2 R1 Follower-Directed Leader-Directed

Transactional versus Charismatic Leadership Transactional Leadership: focuses on the interpersonal interactions between managers and employees Transactional Leaders - use contingent rewards to motivate employees - exert corrective action only when employees fail to obtain performance goals

Transactional versus Charismatic Leadership (continued) 14-8b Charismatic Leadership: emphasizes symbolic leader behavior that transforms employees to pursue organizational goals over self-interests Charismatic Leaders - use visionary and inspirational messages - rely on non-verbal communication - appeal to ideological values - attempt to intellectually stimulate employees - display confidence in self and followers - set high performance expectations For class discussion: Should a leader be both transactional and charismatic? Is charismatic leadership only critical for senior executives and not for entry level supervisors or managers?

Charismatic Model of Leadership Figure 14-4a Individual and Organizational Characteristics Leader behavior Effects on followers and work groups Outcomes Traits Personal commitment to leader and vision Leader establishes a vision Increased intrinsic motivation, achievement orientation, and goal pursuit Organizational Culture

Charismatic Model of Leadership (cont) 14-9b Figure 14-4b Individual and Organizational Characteristics Leader behavior Effects on followers and work groups Outcomes Traits Self-sacrificial behavior Organizational commitment Task meaningfulness and satisfaction Increased individual group, and organizational performance Leader establishes high performance expectations and displays confidence in him/herself and the collective ability to realize the vision Leader models the desired values, traits, beliefs, and behaviors needed to realize the vision Increased identification with the leader and the collective interests of organizational members Increased cohesion among workgroup members Increased self-esteem, self-efficacy, and intrinsic interests in goal accomplishment Increased role modeling of charismatic leadership Organizational Culture

The Leader-Member Exchange (LMX Model) 14-10 This model is based on the idea that one of two distinct types of leader-member exchange relationships evolve, and these exchanges are related to important work outcomes. - in-group exchange: a partnership characterized by mutual trust, respect and liking - out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking Research supports this model

Assessing your Leader-Member Exchange (LMX) 14-11 Hands-on Exercise Assessing your Leader-Member Exchange (LMX) What is the overall quality of your LMX? What are the career and performance implications of your LMX? How might you improve your LMX? Who owns the quality of a LMX (the employer or manager)? Explain.

Substitutes for Leadership 14-12 Substitutes for leadership represent situational variables that can substitute for, neutralize, or enhance the effects of leadership. Research shows that substitutes for leadership directly influence employee attitudes and performance.

Substitutes for Leadership Table 14-1a Substitutes for Leadership Characteristic Relationship-Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary Of the Subordinate 1. Ability, experience, training, knowledge X 2. Need for Independence 3. “Professional” orientation 4. Indifference toward organizational rewards Of the Task 5. Unambiguous and Routine 6. Methodically invariant 7. Provides its own feedback concerning accomplishment 8. Intrinsically satisfying.

Substitutes for Leadership (cont) Table 14-1b Characteristic Relationship-Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary Of the Organization 9. Formalization (explicit plans, goals, and areas of responsibility) X 10. Inflexibility (rigid, unbending rules and procedures) 11. Highly specified and active advisory and staff functions 12. Closely knit, cohesive work groups 13. Organizational rewards not with the leader’s control 14. Spatial distance between superior and subordinate Source: Adapted from S Kerr and J M Jermier, “Substitutes for Leadership:Their Meaning and Measurement,” Organizational Behavior and Human Performance, December 1978, pp 375-403

Servant and Superleadership 14-14 Servant Leadership represents a philosophy in which leaders focus on increased service to others rather than to oneself. A superleader is someone who leads others to lead themselves by developing employees’ self-management skills. Superleaders attempt to increase employees’ feelings of personal control and intrinsic motivation.

Characteristics of the Servant-Leader Table 14-2a Characteristics of the Servant-Leader 1. Listening Servant-leaders focus on listening to identify and clarify the needs and desires of a group. 2. Empathy Servant-leaders try to empathize with others’ feelings and emotion. An individual’s good intentions are assumed even when he or she performs poorly. 3. Healing Servant-leaders strive to make themselves and others whole in the face of failure or suffering. 4. Awareness Servant-leaders are very self-aware or their strengths and limitations.

Characteristics of the Servant-Leader (continued) 14-15b Table 14-15b Characteristics of the Servant-Leader (continued) 5. Persuasion Servant-leaders rely more on persuasion than positional authority when making decisions and trying to influence others. 6. Conceptualization Servant-leaders take the time and effort to develop broader based conceptual thinking. Servant-leaders seek an appropriate balance between a short- term, day-to-day focus and a long-term, conceptual orientation. 7. Foresight Servant-leaders have the ability to foresee future outcomes associated with a current course of action or situation.

Characteristics of the Servant-Leader (continued) Table 14-2c Characteristics of the Servant-Leader (continued) 8. Stewardship Servant-leaders assume that they are stewards of the people and resources they manage. 9. Commitment to Servant-leaders are committed to people the growth of beyond their immediate work role. They people commit to fostering an environment that encourages personal, professional, and spiritual growth. 10. Building Servant-leaders strive to create a sense of Community community both within and outside the work organization.