Organizational Behavior, 8e Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

Organizational Behavior: Chapter 14 COPYRIGHT Copyright 2003 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. Organizational Behavior: Chapter 14

Chapter 14 High Performance Leadership Study questions. What is leadership, and how does it differ from management? What are the trait and behavioral leadership perspectives? What are the situational or contingency leadership approaches? How does attribution theory relate to leadership? Organizational Behavior: Chapter 14

Chapter 14 High Performance Leadership Study questions — cont. What are the new leadership perspectives, and why are they especially important in high performance organizations? Organizational Behavior: Chapter 14

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. Organizational Behavior: Chapter 14

What is leadership, and how does it differ from management? 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. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Trait theories. Assume that traits play a key role in: Differentiating between leaders and nonleaders. Predicting leader or organizational outcomes. Great-person-trait approach. Earliest approach in studying leadership. Tried to determine the traits that characterized great leaders. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Identifiable characteristics of leaders. Energetic. Operate on an even keel. Seek power as a means of achieving a vision or goal. Ambitious. High need for achievement. Recognize their own strengths and weaknesses. Oriented toward self-improvement. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Identifiable characteristics of leaders — cont. Integrity. Not easily discouraged. Deals well with large amounts of information. Above-average intelligence. Good understanding of their social setting. Possess specific knowledge concerning their industry, firm, and job. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Behavioral theories. Assume that leader behaviors are crucial for explaining performance and other organizational outcomes. Major behavioral theories. Michigan leadership studies. Ohio State leadership studies. Leadership Grid. Leader-Member Exchange (LMX) theory. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? 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. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? 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. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Leadership Grid. Developed by Robert Blake and Jane Mouton. Built on dual emphasis of consideration and initiating structure. A 9 x 9 Grid (matrix) reflecting levels of concern for people and concern for task. 1 reflects minimum concern. 9 reflects maximum concern. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Leadership Grid — cont. Five key Grid combinations. 1/1 — low concern for production, low concern for people. 1/9 — low concern for production, high concern for people. 5/5 — moderate concern for production, moderate concern for people. 9/1 — high concern for production, low concern for people. 9/9 — high concern for production, high concern for people. Organizational Behavior: Chapter 14

What are the trait and behavioral leadership perspectives? Leader-Member Exchange (LMX) theory. Focuses on the quality of the working relationship between leaders and followers. LMX dimensions determine followers’ membership in leader’s “in group” or “out group.” Different relationships with “in group” and “out group.” Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Leader traits and behaviors can act in conjunction with situational contingencies. The effects of leader traits are enhanced by their relevance to situational contingencies. Major situational contingency theories. Fiedler’s leadership contingency theory. Fiedler’s cognitive resource theory. House’s path-goal theory of leadership. Hersey and Blanchard’s situational leadership model. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Fiedler’s leadership contingency theory. Initiated the situational contingency approach in the mid-1960s. Fiedler’s approach emphasized that group effectiveness depends on an appropriate match between the leader’s style and situational demands. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Key variables in Fiedler’s contingency model. Situational control. The extent to which a leader can determine what his or her group is going to do as well as the outcomes of the group’s actions and decisions. Is a function of: Leader-member relations. Task structure. Position power. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Key variables in Fiedler’s contingency model — cont. Least preferred co-worker (LPC) score reflects a person’s leadership style. High-LPC leaders have a relationship-motivated style. Low-LPC leaders have a task-motivated style. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Implications of Fiedler’s contingency model. Task-motivated leaders have more effective groups under conditions of low or high situational control. Relationship-motivated leaders have more effective groups under conditions of moderate situational control. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Fiedler’s cognitive resource theory. Cognitive resources are abilities or competencies. A leader’s use of directive or nondirective behavior depends on: The leader’s or subordinate group members’ ability or competency. Stress. Experience. Group support of the leader. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Fiedler’s cognitive resource theory — cont. Directiveness is most helpful for performance when the leader is: Competent. Relaxed. Supported. Otherwise nondirectiveness is preferred. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Evaluation and application of Fiedler’s contingency theory. Controversy regarding what LPC actually measures. Leader match training. Leaders are trained to diagnose the situation to match their LPC scores with situational control. Also shows how situational control variable can be changed to obtain a match. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? House’s path-goal theory of leadership. 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. The theory assumes that a leader’s key function is to adjust his/her behavior to complement situational contingencies. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? House’s path-goal theory of leadership — cont. Leader behaviors. Directive leadership. Supportive leadership. Achievement-oriented leadership. Participative leadership. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? House’s path-goal theory of leadership — cont. Situational contingency variables. Subordinate attributes — authoritarianism, internal-external orientation, and ability. Work setting attributes — task, formal authority system, and primary work group. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding directive leadership. Positive impact on subordinates when task is clear; negative impact when task is ambiguous. More directiveness is needed when ambiguous tasks are performed by highly authoritarian and closed-minded subordinates. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding supportive leadership. Increases satisfaction of subordinates working on highly repetitive, unpleasant, stressful, or frustrating tasks. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding achievement-oriented leadership. Encourages subordinates to strive for higher performance standards and to have more confidence in their ability to meet challenging goals. Increases effort-performance expectancies for subordinates working in ambiguous, nonrepetitive tasks. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Path-goal theory predictions regarding participative leadership. Promotes satisfaction on nonrepetitive tasks that allow for subordinates’ ego involvement. Promotes satisfaction for open-minded or nonauthoritarian subordinates working on repetitive tasks. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Evaluation and application of House’s path-goal theory. Many aspects of the theory have not been adequately tested. Lacks substantial current research. House has revised and extended path-goal theory into a theory of work unit leadership. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Hersey and Blanchard’s situational leadership model. Emphasizes the situational contingency of maturity, or “readiness,” of followers. Readiness is the extent to which people have the ability and willingness to accomplish a specific task. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Hersey and Blanchard’s situational leadership model — cont. Leader style and follower readiness. A telling style is best for low readiness. A selling style is best for low to moderate readiness. A participating style is best for moderate to high readiness. A delegating style is best for high readiness. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Substitutes for leadership. Sometimes hierarchical leadership makes essentially no difference. Substitutes for leadership make a leader’s influence either unnecessary or redundant. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Examples of leadership substitutes. Individuals’ experience, ability, and training. Individuals’ professional orientation. Highly structured/routine jobs. Intrinsically satisfying jobs. Cohesive work group. Organizational Behavior: Chapter 14

What are the situational or contingency leadership approaches? Examples of leadership neutralizers. Individual indifference toward organizational rewards. Low leader position power. Physical separation of leader. Organizational Behavior: Chapter 14

How does attribution theory relate to leadership? Attribution theory recognizes that leadership and its effects may not be able to be identified and measured objectively. Leaders’ and subordinates’ behaviors are significantly influenced by the attributions each makes about the other’s behavior. Organizational Behavior: Chapter 14

How does attribution theory relate to leadership? Leadership prototypes. People’s mental image of what a model leader should look like. A mix of specific and more general characteristics. Some core characteristics — like integrity and self-efficacy — are probably universal across leadership situations. Organizational Behavior: Chapter 14

How does attribution theory relate to leadership? Leadership prototypes — cont. Prototypes may differ by country and by 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. Organizational Behavior: Chapter 14

How does attribution theory relate to leadership? Exaggeration of the leadership difference. CEOs, particularly of large corporations, may have little leadership impact on profits and effectiveness compared to environmental and industry forces. Romance of leadership. People attribute almost magical qualities to leadership. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? New leadership emphasizes: Charismatic approaches. Transformational approaches. Aspects of vision related to charismatic and transformational approaches. New leadership is important in changing and transforming individuals and organizations with a commitment to high performance. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? 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. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Charismatic approaches to leadership — cont. Charismatic behaviors include: Role modeling. Image building. Articulating goals. Emphasizing high expectations. Showing confidence. Arousing follower motives. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Dark side versus bright side of charismatic leadership. Dark side. Emphasizes personalized power. Leaders focus on themselves. Bright side. Emphasizes socialized power. Leaders empower followers. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Conger and Kanungo’s three-stage charismatic leadership model. Stage 1: The leader critically evaluates the status quo. Stage 2: The leaders formulates and articulates future goals and a idealized future vision. Stage 3: The leader shows how the goals and vision can be achieved. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Conger and Kanungo’s three-stage charismatic leadership model — cont. If leaders use behaviors such as vision articulation, environmental sensitivity, and unconventional behavior, followers will attribute charismatic leadership to them. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Charismatic leadership relative to close-up and at-a-distance leaders. Both types of leaders are viewed as charismatic but possess quite different traits and behaviors. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Transactional leadership. Involves leader-follower exchanges necessary for achieving routine performance agreed upon between leaders and followers. Leader-follower exchanges involve: Use of contingent rewards. Active management by exception. Passive management by exception. Abdicating responsibilities and avoiding decisions. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Transformational leadership occurs when leaders: Broaden and elevate their followers’ interests. Generate awareness and acceptance of the group’s purposes and mission. Stir their followers to look beyond their own self-interests to the good of others. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Dimensions of transformational leadership. Charisma. Provides vision and a sense of mission; and instills pride, respect, and trust in followers. Inspiration. Communicates high expectations, uses symbols to focus efforts; expresses important purposes in simple ways. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Dimensions of transformational leadership — cont. Intellectual stimulation. Promotes intelligence, rationality, and careful problem solving. Individualized consideration. Provides personal attention, treats each employee individually, and coaches and advises. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Transformational leadership is likely to be strongest at the top-management level. Transformational leadership is found through the organization. Transformational leadership operates in combination with transactional leadership. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Leadership in high performance work teams. Leaders in self-directing work teams act as coordinators. Behaviors in the coordinator role emphasize the development of self-leadership on the part of team members. Self-leadership acts as a partial substitute for hierarchical leadership. While coordinator behaviors encourage follower participation, they are not charismatic behaviors. Organizational Behavior: Chapter 14

Organizational Behavior: Chapter 14 What are the new leadership perspectives, and why are they especially important in high performance organizations? Some new leadership issues. People can be trained in new leadership approaches. New leadership is not always good or needed. New leadership should be used in conjunction with traditional leadership. Organizational Behavior: Chapter 14