Leadership in Organizational Settings McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

12-2 The Leadership of Steve Jobs During his life, Steve Jobs won numerous awards for his transformational and charismatic leadership. The co-founder of Apple, Inc. and Pixar animation Studios was equally renowned as a demanding perfectionist with less-than-ideal people skills.

12-3 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

12-4 Shared Leadership  The view that leadership is broadly distributed, rather than assigned to one person, such that people within the team and organization lead each other. Employees champion change, ideas, etc.  Shared leadership requirements: Formal leaders willing to delegate power Collaborative culture – employees support each other Employees able to influence others

12-5 LeadershipPerspectives Competency Perspective Contingency Perspective Implicit Leadership Perspective Transformational Perspective Perspectives of Leadership Behavioral Perspective

12-6 Competency Perspective  Personal characteristics that lead to superior performance in a leadership role  Several competencies now identified as key influences on leadership potential and of effective leaders

12-7 Self-concept Drive Positive self-evaluation High self-esteem and self-efficacy Internal locus of control Inner motivation to pursue goals Inquisitiveness, action-oriented Integrity Truthfulness Consistency in words and actions Personality Extroversion, conscientiousness (and other personality dimensions) Eight Leadership Competencies more

12-8 Cognitive/ Practical intelligence Above average cognitive ability Able to solve real-world problems Knowledge of the Business Understands external environment Aids intuitive decision making Eight Leadership Competencies (con’t) Leadership Motivation Motivation to lead others High need for socialized power Emotional Intelligence Perceiving, assimilating, understanding, and regulating emotions

12-9 Authentic Leadership at TNT TNT, the Netherlands-based express and mail delivery services company, relies on “honesty, authentic leadership, and truly connecting with staff” to keep the firm humanized. “What you can do as a company is emphasize that authentic leadership is key and explain what it entails” says TNT’s head of human resources.

12-10 Authentic Leadership Know Yourself Engage in self- reflection Feedback from trusted sources Know your life story Engage in self- reflection Feedback from trusted sources Know your life story Be Yourself Develop your own style Apply your values Maintain a positive core self-evaluation Develop your own style Apply your values Maintain a positive core self-evaluation

12-11 Competency Perspective Limitations 1. Implies a universal approach 2. Alternative combinations of competencies might work just as well 3. Leadership is relational, not just something within the person 4. Competencies refer to leadership potential, not performance

12-12 Leader Behavior Perspective  Task-oriented behaviors Assign work, clarify responsibilities Set goals and deadlines, provide feedback Establish work procedures, plan future work  People-oriented behaviors Concern for employee needs Make workplace pleasant Recognize employee contributions Listen to employees

12-13 Leader Behavior Perspective Limitations  These categories mask subcategories of leader behavior that may be distinct  Assumes best leaders display a high level of both people-oriented and task-oriented styles But best style seems to depend on the situation

12-14 Servant Leadership  Leaders serve others toward their need fulfillment, personal development, and growth  Described as selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches  Three main features: 1. Natural calling to serve others 2. Maintain a humble, egalitarian, accepting relationship 3. Anchor decisions/actions on ethical principles

12-15 Anne Sweeney’s Path-Goal Leadership Disney/ ABC executive Anne Sweeney has an uncanny ability to provide both task-oriented and people-oriented leadership.  “There's great resolve and strength there.”  “Anne draws upon her optimism and her grace in keeping her focus firmly on the future.”  “[She] asks the tough questions.... It trains you to anticipate it.”  “She's very concerned about the people who work for her.”

12-16 Path-Goal Leadership  Effective leaders provide the information, support, and other resources, and ensure that rewards are linked to good performance  Several employee and situational contingencies to determine the best leader style

12-17 Path-Goal Leadership Styles  Directive Provide psychological structure to jobs Task-oriented behaviors  Supportive Provide psychological support People-oriented behaviors  Participative Encourage/facilitate employee involvement  Achievement-oriented Encourage peak performance through goal setting and positive self-fulfilling prophecy

12-18 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

12-19 Path-Goal Contingencies  Skill and experience Low: directive and supportive leadership  Locus of control Internal: participative and achievement leadership External: directive and supportive leadership  Task structure Nonroutine: directive and/or participative leadership  Team dynamics Low cohesion: supportive leadership Dysfunctional norms: directive leadership

12-20 Other Contingency Leader Theories  Situational Leadership Model Four styles: telling, selling, participating, delegating Best style depends on follower ability/motivation Popular model, but lacks research support  Fiedler’s Contingency Model Leadership style is stable -- based on personality Best style depends on situational control Theory has problems, but uniquely points out that leaders have a preferred style, not very flexible

12-21 Leadership Substitutes  Contingencies that limit a leader’s influence or make a particular leadership style unnecessary e.g.: Training and experience replace task-oriented leadership  Research evidence: substitutes help, but don’t completely substitute for real leadership

12-22 Transformational, Managerial, and Transactional Leadership  Transformational leadership Change agents – transforming the organization to fit environment  Managerial leadership Improving employee performance and well-being in the current situation Applies contingency leadership theories (e.g. path-goal)  Transactional leaders Influencing followers through rewards, penalties, and negotiation Courtesy of Microsoft

12-23 Transformational v. Charismatic Leaders  Some leadership models say charismatic leadership is essential for transformational leadership  Emerging view -- charisma differs from transformational leadership  Charisma is a personal trait that provides referent power Doesn’t necessarily attempt to change the organization  Transformational leadership is a set of behaviors to bring about change

12-24 Transformational Leadership Model Develop a strategic vision Communicate the vision Model the vision Build commitment to the vision Elements of Transformational Leadership

12-25 Transformational Leadership Elements  Create a strategic vision Image of company’s attractive future Motivates and bonds employees Vision may originate from the leader, employees, or other stakeholders  Communicate the vision Frame message around a grand purpose Shared mental model of the future Use symbols, metaphors, symbols Develop a strategic vision Communicate the vision Elements of Transformational Leadership

12-26 Transformational Leadership Elements (con’t)  Model the vision Walk the talk Symbolize/demonstrate the vision through behavior Employees trust leader more  Build commitment to the vision By communicating and modeling the vision Through employee involvement in shaping the shared vision Develop a strategic vision Communicate the vision Model the vision Build commitment to the vision Elements of Transformational Leadership

12-27 Evaluating Transformational Leadership  Transformational leadership is important Higher employee satisfaction, performance, org citizenship, creativity  Transformational leadership limitations Risk of circular logic - Some research defines transformational leaders by their success rather than their behavior Universal theory - Need a contingency-oriented theory - Need to recognize cultural differences

12-28 Implicit Leadership Perspective Follower perceptions of characteristics of effective leaders 1. Leadership prototypes Preconceived beliefs about the features and behaviors of effective leaders. 2. Romance of leadership effect Amplify effect of leaders on organizational results Fundamental attribution error Need for situational control

12-29 Leading with Ubuntu Values Barloworld Logistics CEO Isaac Shongwe is keen to imprint Africa’s unique ubuntu value throughout the company’s operations in 26 countries. Ubuntu is the notion of that each of us is a person through others. Thus, ubuntu calls for leadership that emphasizes mutual respect, tolerance, and forgiveness.

12-30 Cultural Issues in Leadership  Societal cultural values and practices affect leaders: Shape leader’s values/norms Influence decisions and actions Shape follower prototype of effective leaders  Some leadership styles are universal, others differ across cultures “Charismatic visionary” seems to be universal Participative leadership works better in some cultures than others

12-31 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  Evaluating female leaders Still receive negative evaluations as leader due to prototypes and gender stereotypes But evidence that they are good at emerging leadership styles (coaching, teamwork)

Leadership in Organizational Settings