Leadership © 2010 Randall B. Dunham

Issues Understand common leadership models Understand the selection and training implications of each model Understand your personal leadership style and its implications Develop a model for organizational leadership effectiveness Understand and learn how to manage neutralizers and substitutes for leadership Case: The Unique Bicycle Company (UBC)

Leadership An interpersonal process in which influence is exercised in a social system for the achievement of organizational goals by others

Leaders Influence Followers To achieve organizational and personal goals To become engaged in the organization & to develop commitment to the organization To be satisfied with the leadership process Other?

Content Analysis: Criteria Used to Evaluate Leaders Interpersonal Structuring Frequent personal contact Motivator Communicator Interpersonal power Nurturing Supportive Charisma Change Related Promoter of change Willingness to change Think outside the box Innovativeness Willingness to take risk Cont.

Content Analysis: Criteria Used to Evaluate Leaders(cont.) Personal Reality based Forward looking Ethical Socially responsible Goal oriented Willing to admit mistakes Integrity Courage Self-confidence No fear Patient Adaptable Ability to cope with pressure Proactive Decisive Manages escalation of commitment Trusts others Delivers on commitments Cont.

Content Analysis: Criteria Used to Evaluate Leaders(cont.) Strategy Vision setting Identifies threats & opportunities Operational plans to serve strategic objectives Long-term perspective Ability to execute Willing to adjust Does research Other Sets standards Manages culture Manages self & company image Customer focus Turnaround ability Emotional & intellectual involvement Cares about organization

? ? For Discussion Good leaders are born Anyone can become a good leader ? One “best kind” of leader Match leader to situation ?

Organizing Perspective Theoretical Approach Universal Contingent Situation-Contingent Traits Universal Traits Traits Focal Construct Situation-Contingent Behaviors Universal Behaviors Behaviors

Universal Leadership Traits Model Assumption: It is possible to identify the person who has “the right stuff” to be a good leader in any situation Some Purported Traits Physical characteristics Social background Intellectual ability Personality Some Promising Traits Energy level Self-confidence Need for achievement Need for power

Universal Leadership Behaviors Model Assumption: It is possible to identify the behaviors required to be a good leader in any situation The degree to which a leader clarifies and defines roles for followers Initiating Structure Consideration Behavior The degree to which a leader attends to the welfare, comfort, needs, and satisfaction of followers

A Contemporary Leadership Trait Model Transactional Leaders Transformational Leaders Focus on development of trust, confidence, admiration, loyalty, and commitment. This is a charismatic leader. Focus on self-interest through exchange with the organization (the Path-Goal Model is an example)

Traits of Transformational Leaders High self-confidence Articulate a vision Assume personal risk to pursue vision Use unconventional strategies Perceive self as change agent

Transformational Leader Traits: An Example High self-confidence Articulates a vision Assume personal risk to pursue vision Use unconventional strategies Perceive self as change agent Question: Under what conditions is a transformational leader appropriate?

Situation-Contingent Leadership Behavior Model Assumption: Possible to create a match between the situation and the behaviors of the leader Logic Help followers perform effectively by providing direction Make rewards (thus, satisfaction) contingent on performance Be perceived as instrumental in obtaining satisfaction Example Evans & House Path-Goal Model

Key Leader Behaviors Directive (initiating structure) Supportive (consideration) Achievement-oriented (creating and defining challenges and opportunities to succeed) Participative (involving followers in problem-solving and decision-making)

Research Results: Impact of Initiating Structure On satisfaction and other attitudes? Sometimes positive. When? Sometimes negative. When? Performance? Sometimes no effect. When?

Research Results: Impact of Consideration On satisfaction and other attitudes? Usually positive. Why? Performance? Sometimes positive. When? Sometimes no effect. When?

Research Results: Achievement-Oriented Behavior On satisfaction and other attitudes? Usually positive. Why? Sometimes negative. When? On Performance? Sometimes positive. When? Sometimes no effect. When?

Research Results: Participative-Oriented Behavior On satisfaction and other attitudes? Usually positive. Why? Sometimes negative. When? On Performance? Sometimes positive. When?

Situational Characteristics Followers Authoritarianism Locus of control Task-related ability Need for achievement Environmental Nature of task (structuring? rewarding?) Formal authority (does leader have authority?) Primary work group (structuring? rewarding?)

Good Matches SITUATION BEHAVIOR Directive Supportive People with external locus of control, low task ability or working on ambiguous tasks People working on stressful, frustrating, or dissatisfying tasks People with need for achievement working on ambiguous, nonrepetitive tasks People with internal locus of control or ego-involved in ambiguous tasks Other good matches? Directive Supportive Achievement-oriented Participative

Self-Assessment Results: Leadership Consideration Behavior Initiating Structure

Selection & Training Implications Theoretical Approach Universal Contingent Situation-Contingent Traits Universal Traits Traits Focal Construct Situation-Contingent Behaviors Universal Behaviors Behaviors

Leadership Trait Model Selection & Training Implication Leadership Trait Model Assess critical situation characteristics Assess traits of leaders Place leaders into situations where traits will be effective OR (Re)Engineer situation so current leaders’ traits become effective

Situation-Contingent Behavior Model Selection & Training Implication Situation-Contingent Behavior Model Assess characteristics of followers (e.g., personality) Assess characteristics of the environment (e.g., task structure, authority, group factors) Appoint leaders who behave appropriately for situation OR Teach leaders how to behave for situation OR Change situation to match behavior of leader

Potential Neutralizers of & Substitutes for Leadership Factors that reduce the ability of leaders to exert influence Factors that reduce the necessity for leadership Leader

Potential Neutralizers Indifference toward (or unavailability of) organizational rewards Low leader position power Environmental inflexibility (e.g., rigid rules & procedures) Limited interaction of leaders & followers Others inside or outside the organization exert more influence Other? Leader

Dealing With Potential Neutralizers How do we identify potential neutralizers? How do we prevent neutralization from occurring? How do we deal with neutralizing effects as they occur? Leader

Potential Substitutes Follower ability, training, and experience Professional orientation of followers Task structure (routine, unambiguous) Feedback from the task itself Intrinsically satisfying tasks Work group cohesiveness Formalization (e.g., plans, goals, responsibilities)

Managing Substitutes What factors create a need for substitutes? How do we create, introduce, and manage substitutes? What are the major barriers to the effective use of substitutes?

Effective Leaders Influence Followers A REMINDER To achieve organizational and personal goals To become engaged in the organization & develop commitment to the organization To be satisfied with the leadership process Other?

Leadership & Power: Comments on Power “Power is America’s last dirty word. It is easier to talk about money—and much easier to talk about sex—than it is to talk about power.” Kantor “…those who love laws and sausages should not watch either being made…. We honor leaders for what they achieve, but we often prefer to close our eyes to the way they achieve it.” Pfeffer “…the qualities required for leadership are not necessarily those that we would want our children to emulate—unless we wanted them to be leaders.” Pfeffer

Leadership & the Role of Interpersonal Power Definition: The ability to influence others and maintain control over your own fate Question: When is power an important component of leadership? Why? Question: How can the power of followers work for/against a leader?

Bases of Power Referent Coercive Reward Expert Legitimate Resource

Legitimate Power Exists when one person believes that another person has the right to influence him or her (authority)

Reward Power Exists when one person believes another person can and is willing to provide or withhold rewards

Coercive Power Exists when one person believes another person can and is willing to provide or withhold punishment

Referent (Charismatic) Power Exists when one person finds another attractive and wants to be associated with or affiliated with that person

Expert Power Exists when one person believes another person has desired expertise and is willing to share or withhold it

Resource Power Exists when one person believes that another person has desired (nonexpert) resources and is willing to share or withhold them

Principles of Power Power is perception based Power is relative Power bases must be coordinated Power is a double-edged sword (used and abused)

Organizational Power Management Empower to punish others Select charismatic individual Empower to reward others Select & train for desired expertise Provide resources to manage Assign to position of authority

Personal Power Management Use & make authority known Be a nice person Acquire and make expertise known Show ability to provide or with-hold rewards Acquire and make resources known Show ability to provide or with-hold punishment

Issues Understand common leadership models Understand the selection and training implications of each model Understand your personal leadership style and its implications Develop a model for organizational leadership effectiveness Understand and learn how to manage neutralizers and substitutes for leadership Case: The Unique Bicycle Company (UBC)

Leadership © 2010 Randall B. Dunham