Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leadership in Organizational Settings Chapter Eleven

11-2 Leadership at Infosys “ In essence, leadership is about dreaming the impossible and helping followers achieve the same. ” Nandan Nilekani (left in photo), CEO of Infosys, one of India ’ s largest and most successful information technology companies.

11-3 Leadership Defined Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members

11-4 Shared Leadership Leadership is not restricted to people in formal management positions. Anyone in the organization may -- and should -- be a leader in various ways and at various times. Effective companies encourage employees to be leaders when needed (e.g. change champions)

11-5 LeadershipPerspectives Competency Perspective Contingency Perspective Implicit Leadership Perspective Transformational Perspective Perspectives of Leadership Behavior Perspective

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leadership Competencies Perspective Leadership in Organizational Settings

11-7 Integrity Drive Truthfulness Translates words into deeds Inner motivation to pursue goals Need for achievement, quest to learn Leadership Motivation High need for socialized power to accomplish team’s or firm’s goals Emotional Intelligence Perceiving, assimilating, understanding, and regulating emotions Seven Leadership Competencies more

11-8 Intelligence Above average cognitive ability Can analyze problems/opportunities Knowledge of the Business Familiar with business environment Aids intuitive decision making Self-Confidence Strong belief in one’s ability to lead others Seven Leadership Competencies (con’t)

11-9 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

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leadership Behavior and Contingency Perspectives Leadership in Organizational Settings

11-11 Leader Behavior Perspective What makes Bruce Draper (shown here) one of the best bosses in Great Britain? He provides plenty of supportive leadership, says employee Hannah Delany. “ Bruce cares about his staff and never takes them for granted … He appears friendly, approachable and kind and makes sure everyone is content in their job. ”

11-12 Leader Behavior Perspective People-oriented behaviors  Showing mutual trust and respect  Concern for employee needs  Looks out for employee well-being Task-oriented behaviors  Assign specific tasks  Ensure employees follow rules  Set “stretch goals” to achieve performance capacity

11-13 Leader Behavior Perspective Limitations People-task categories mask subcategories of leader behavior that may be distinct Assumes best leaders display a high level of both people and task styles  But best style seems to depend on the situation

11-14 Path-Goal Leadership Styles Directive  Task-oriented behaviors Supportive  People-oriented behaviors Participative  Encouraging employee involvement Achievement-oriented  Using goal setting and positive self-fulfilling prophecy

11-15 Path-Goal Leadership Model EmployeeContingenciesEmployeeContingencies EnvironmentalContingenciesEnvironmentalContingencies Leader Behaviors Directive Supportive Participative Achievement- oriented Directive Supportive Participative Achievement- oriented Leader Effectiveness Employee motivation Employee satisfaction Acceptance of leader Employee motivation Employee satisfaction Acceptance of leader

11-16 DirectiveSupportiveParticipativeAchievement Employee Contingencies Path-Goal Contingencies Skill/Experience lowlowhighhigh Locus of Control externalexternalinternalinternal Task Structure nonroutineroutinenonroutine? Team Dynamics –ve norms low cohesion+ve norms? Environmental Contingencies DirectiveSupportiveParticipativeAchievement

11-17 Leadership Substitutes Contingencies that limit a leader’s influence or make a particular leadership style unnecessary. Examples:  Training and experience replace task-oriented leadership  Cohesive team replaces supportive leadership  Self-leadership replaces achievement-oriented leadership Research evidence: substitutes help, but don’t completely substitute for real leadership

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Transformational Leadership Perspective Leadership in Organizational Settings

11-19 Transformational Leadership at P&G Procter & Gamble CEO A. G. Lafley practices transformational leadership without using charisma. By forming and communicating a clear vision and modeling that vision, he has transformed the consumer goods company.

11-20 Transformational v. Transactional Leaders Transformational leaders  Leading -- changing the organization to fit environment  Change agents Transactional leaders  Managing -- linking job performance to rewards  Ensure employees have necessary resources  Apply contingency leadership

11-21 Transformational v. Charismatic Leaders Is charismatic leadership essential for transformational leadership? Some experts say yes, but emerging view is that:  Charisma is distinct from transformational leadership  A personal trait that might help transform, or might just help the leader  Charismatic leadership might have opposite effect -- creates dependence, not empowerment

11-22 Transformational Leadership Elements 1. Create a strategic vision  Vision — Depiction of company’s (or work units) attractive future — motivates and bonds employees  May originate from others, but leader becomes a champion of the vision 2. Communicate the vision  Frame message around a grand purpose  Create a shared mental model of the future  Use symbols, metaphors, symbols

11-23 Transformational Leadership Elements (con’t) 3. Model the vision  Walk the talk  Symbolize and demonstrate the vision through their own behavior  Builds employee trust in the leader 4. Build commitment to the vision Increased through communicating and modeling the vision Increased through employee involvement in shaping the shared vision

11-24 Evaluating Transformational Leadership Transformational leadership is important  Higher employee satisfaction, performance, org citizenship, creativity Transformational leadership limitations  Circular logic -- leaders effective by definition  Universal theory — Need a contingency-oriented theory — Recognize differences across cultures

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Implicit Leadership Perspective Leadership in Organizational Settings

11-26 Implicit Leadership Perspective Followers’ perceptions about the characteristics and influence of people they call leaders Leadership prototypes  Preconceived beliefs about leader features/behaviors  Leaders evaluated against prototypes Romance of leadership effect  Attribute outcomes to leaders because — Simplifies explanations — Illusion of control-- people control their environment  Fundamental attribution error — Leader given credit or blame for organizational outcomes

11-27 Cultural Issues in Leadership Societal cultural values and practices affect leaders:  Shape leader’s values/norms  Influence decisions and actions Some leadership styles are universal, others differ across cultures  “Charismatic visionary” seems to be universal  Participative leadership works better in some cultures than others

11-28 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.

11-29 Evaluating Female Leaders Past evidence  Women rated less favorably than equivalent male leaders due to stereotyping Recent evidence  Women rated more favorably than men, particularly on emerging leadership styles (coaching, teamwork)

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leadership in Organizational Settings Chapter Eleven