Leadership Managing Organizational Behavior & Design Hitt et al Chapter 8 Abridged and Augmented MGT 5371-001 Managing Organizational Behavior & Design May 6-18-07 John D. Blair, PhD Georgie G. & William B. Snyder Professor in Management

What is leadership and how does it differ from management? Management promotes stability or enables the organization to run smoothly. Leadership promotes adaptive or useful changes. Persons in managerial positions may be involved with both management and leadership. Both management and leadership are needed for organizational success.

What is leadership and how does it differ from management cont.? Leadership is a special case of interpersonal influence that gets an individual or group to do what the leader or manager wants done. Forms of leadership. Formal leadership. Informal leadership.

The Nature of Leadership The process of providing direction and influencing individuals or groups to achieve goals Effective leaders are concerned with doing the “right things” Create and communicate a vision of what the organization should be Communicate with and gain the support of multiple constituencies Persist in the desired direction even under bad conditions Create the appropriate culture and to obtain the desired results

Approaches to leadership Trait and behavioral perspectives. Situational contingency perspectives. Attributional perspectives. New leadership perspectives.

Six Core Traits of Leadership Drive Ambition Achievement motivation Persistence Tenacity Initiative Leadership motivation Desire to lead, influence others, assume responsibility, and gain power Socialized power motive Personalized power motive

Six Core Traits of Leadership Cont. Honesty and integrity Truthful Maintain consistency between what they say and what they do Self-confidence Confident in their actions and show that confidence to others Learn from their mistakes React positively to stress Even-tempered Display appropriate emotions

Six Core Traits of Leadership Cont. Cognitive ability High degree of intelligence Process complex information Deal with changing environments Knowledge of business Knowledge of business in which they are engaged Make better decisions Anticipate future problems Understand implications of their actions

Michigan leadership studies Employee-centered supervisors. Place strong emphasis on subordinate’s welfare. Production-centered supervisors. Place strong emphasis on getting the work done. Employee-centered supervisors have more productive work groups than production-centered supervisors.

Ohio State leadership studies Consideration. Concerned with people’s feelings and making things pleasant for the followers. Initiating structure. Concerned with defining task requirements and other aspects of the work agenda. Effective leaders should be high on both consideration and initiating structure.

Comparison of Michigan and Ohio State Studies Revised Job-Centered Style Initiating Structure A D C B Consideration High Low Employee-Centered Style Adapted from Exhibit 8-2: Comparison of Employee-Centered and Job-Centered Concepts with Consideration and Initiating Structure

House’s path-goal theory of leadership Rooted in the expectancy model of motivation. Emphasizes how a leader influences subordinates’ perceptions of both work goals and personal goals and the links, or paths, found between these two sets of goals.

Path-Goal Leadership Theory Leader behaviors Directive leadership Supportive leadership Achievement-oriented leadership Participative leadership Upward-influencing leadership\ Situational factors Subordinates’ characteristics Characteristics of the work environment

Path-goal theory predictions Directive leadership will have a positive impact on subordinates when tasks are ambiguous and the opposite effect when tasks are clear. Supportive leadership will increase the satisfaction of subordinates who work on tasks that are highly repetitive, unpleasant, stressful, or frustrating.

Path-goal theory predictions cont. Achievement-oriented leadership will encourage subordinates to strive for higher performance standards and to have more confidence in their ability to meet challenging goals when subordinates are working at ambiguous, nonrepetitive tasks. Participative leadership will promote satisfaction on nonrepetitive tasks that allow for the ego involvement of subordinates.

Attributional approaches to leadership Leadership prototypes. People’s mental image of what a model leader should look like. Mix of specific and general characteristics. Prototypes may differ by country and national culture. The closer that a leader’s behavior matches the prototype held by the followers, the more favorable the leader’s relations and key outcomes.

Attributional approaches to leadership Cont. Exaggeration of the leadership difference. Top leaders of organizations have little impact on profits and effectiveness compared to environmental and industry forces. Much of the impact of top leaders is symbolic. The romance of leadership refers to people attributing romantic, almost magical, qualities to leadership.

Charismatic approaches to leadership Charismatic leaders, by force of their personal abilities, can have a profound and extraordinary effect on followers. Characteristics of charismatic leaders include: High need for power. High feelings of self-efficacy. Conviction in the moral rightness of their beliefs.

The Force: Dark side versus bright side of charismatic leadership Emphasizes personalized power. Leaders focus on themselves. Bright side. Emphasizes socialized power. Leaders empower followers.

Conger and Kanungo’s three-stage charismatic leadership model Stage 1: the leader critically evaluates the status quo. Stage 2: the leader formulates and articulates future goals and a idealized future vision. Stage 3: the leader shows how the goals and vision can be achieved.

Distant versus close-up Charismatics

Transactional leadership Involves leader-follower exchanges necessary for achieving routine performance that is agreed upon by leaders and followers. Leader-follower exchanges involve: Use of contingent rewards. Active management by exception. Passive management by exception. Abdicating responsibilities and avoiding decisions.

Transformational leadership Leaders broaden and elevate followers’ interests, generate awareness and acceptance of the group’s mission, and stir followers to look beyond self-interests. Dimensions of transformational leadership. Charisma. Inspiration. Intellectual stimulation. Individualized consideration.

Leadership in self-managing work teams Leaders provide resources or act as liaisons with other units but without the trappings of authority associated with traditional first-line supervisors. Conditions for creating and maintaining team performance. Efficient, goal-directed effort. Adequate resources. Competent, motivated performance. A productive, supportive climate. Commitment to continuous improvement and adaptation.

Can people be trained in the new leadership? People can be trained to adopt new leadership approaches. Leaders can devise improvement programs to address their weaknesses and work with trainers to develop their leadership skills. Leaders can be trained in charismatic skills.

Is new leadership always good? Not always good. Dark-side charismatics can have negative effects on followers. Not always needed. Needs to be used in conjunction with traditional leadership. Applies at all levels of organizational leadership.

Gender Effects on Leadership Do women lead differently than men? Structural-cultural model of leader behavior Often experience lack of power, lack of respect, and stereotypic expectations Thus will develop leadership styles different from those of men Socialization model All have been selected and socialized by the same organization Thus, men and women will display similar leadership styles Both women and men may be effective leaders when style matches the situation

Substitutes for Leadership Characteristics of Associates Task Characteristics Organizational Characteristics High in competitiveness High in need for independence Professional orientation Routineness Feedback Intrinsic satisfaction Highly formalized Rules Norms Policies Group cohesion