Leadership in Organizations Chapter 10 Fundamentals of Organizational Behavior 2e Andrew J. DuBrin PowerPoint Presentation by Charlie Cook

Learning Objectives Differentiate between leadership and management. Describe key leadership traits, styles, and behaviors. Explain the basics of four different contingency theories of leadership. Present an overview of transformational and charismatic leadership. Explain how 360-degree feedback is used to improve leadership effectiveness. Identify gender differences in leadership style. Identify forces that can sometimes decrease the importance of leadership. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Nature of Leadership Is defined as the ability inspire confidence and support among the people on whose competence and commitment performance depends. Involves influencing others to achieve objectives important to them and the organization. Contributes to organizational effectiveness through the use of desirable personal attributes to achieve good results. Effective Leadership = Attributes x Results A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Leaders versus Managers Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Independent Managers Rational Consulting Persistent Problem-solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Leadership Traits and Characteristics Cognitive Skills Mental abilities and knowledge Problem-solving skills Imagination, creativity, and a willingness to experiment Technical and professional competence (knowledge of the business) Personality Traits Enthusiasm Self-confidence Trustworthiness Emotional intelligence Needs for power and achievement A sense of humor A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Leadership Styles and Behavior Behavioral Approach to Leadership Attempts to specify how the behaviors of effective leaders differ from less-effective leaders. Based on the assumption that leaders are relatively consistent in how they attempt to influence group members. Key concept is “leadership style”—the relatively consistent pattern of behavior that characterizes a leader. Recognizes that some leaders modify their leadership style as the situation requires. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Pioneering Studies on Leadership Dimensions Ohio State University Initiating structure The degree to which the leader establishes structure for group members: assigning task, specifying procedures, scheduling work, and clarifying expectations. Consideration The degree to which the leader creates an environment of emotional support, warmth, friendliness, and trust. Research findings Leaders high on initiating structure were rated highly and had higher-producing work groups. High consideration in leaders is associated with low turnover and high job satisfaction. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Leadership Styles Based on a Combination of Initiating Structure and Consideration Low Initiating Structure High Low structure and high consideration High structure low consideration EXHIBIT 10-2 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Pioneering Studies on Leadership Dimensions University of Michigan Production-centered managers Set tight work standards, organized tasks carefully, prescribed work methods, and supervised closely. Employee-centered managers Encouraged participative goal setting and decision-making, fostered high performance by engendering trust and mutual respect. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Pioneering Studies on Leadership Dimensions University of Michigan Findings Employee-centered managers had the most productive work groups. The most effective leaders had supportive relationships with employees, used group decision making, and encouraged employee goal setting. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Managing Polarities Peter Koestenbaum on Leadership The central attribute of leadership is the ability to manage polarity— extremes of positions and interests. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Leadership Grid The Leadership Grid© Describes leadership style in term of concerns for production and people. These concerns reflect attitudes rather than actual behavior. Concern for production includes results, bottom-line performance, profits, and mission. Concern for people includes group members and coworkers. Grid assumes that an opportunistic leader shifts to any Grid style to achieve personal gain and self-promotion. Best style is team management — at 9,9 on the Grid (high concern for both production and people). A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Leadership Grid Figure* Impoverished Management: Exertion of minimum effort to get required work done is appropriate to sustain organization membership. Country Club Management: Thoughtful attention to the needs of the people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo. Team Management: Work accomplishment is from committed people; interdependence through a "common stake" in organization purpose leads to relationships of trust and respect. Authority-Compliance Management: Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. Middle of the Road Management: Adequate organization performance is possible through balancing the necessity to get work out while maintaining morale of people at a satisfactory level. 9,1 1,9 1,1 9,9 5,5 9 8 7 6 5 4 3 2 1 Low High Concern for Results ® * Formerly the Managerial Grid by Robert R. Blake and Jane S. Mouton. Source: Robert R. Blake and Anne Adams McCarse, Leadership Dukennas—Grid Solutions, Houston: Gulf Publishing Company, Grid figure: p. 29, Paternalism/ Materialism figure: p. 30, Opportunism figure: p. 31. Copyright © 1991 by Scientific Methods, Inc. Reproduced by permission of the owners. 2 3 4 5 6 7 8 9 EXHIBIT 10-3a A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Leadership Grid Figure* 9,1 1,9 9 + 9 + 9 Paternalism/Maternalism Rewards and approval are bestowed to people in return for loyalty and obedience; failure to comply leads to punishment. Opportunism 1,1 9, 1 5,5 9,9 In Opportunistic Management, people adapt and shift to any Grid style needed to gain the maximum advantage. Performance occurs according to a system of selfish gain. Effort is given only for an advantage for personal gain. *Formerly the Managerial Grid by Robert R. Blake and Jane S. Mouton. EXHIBIT 10-3b Source: Robert R. Blake and Anne Adams McCarse, Leadership Dukennas—Grid Solutions, Houston: Gulf Publishing Company, Grid figure: p. 29, Paternalism/Materialism figure: p. 30, Opportunism figure: p. 31. Copyright © 1991 by Scientific Methods, Inc. Reproduced by permission of the owners. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Leader-Member Exchange Model Leaders do not relate to each group member in the same manner. Leaders develop unique working relationships with each group member. In-groups are given additional rewards, responsibilities, and trust in exchange for their loyalty and performance. Out-groups have a more formal (traditional) superior-subordinate relationship with the leader. Research findings In-group membership is beneficial to its members. High-quality leader-member exchanges improve delegation. Supervisors are not overly influenced by the exchanges. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership Fiedler’s Contingency Theory of Leadership Assumes that the best style of leadership is determined by the situation in which the leader is working. Uses the least-preferred coworker (LPC) scale to measure the leader’s style. LPC is a measure of how a manager describes his or her relationship to a referent (least-preferred) coworker. Positive LPC descriptions indicate relationship-oriented management styles. Negative LPC descriptions indicate task-oriented management styles. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership Fiedler’s Contingency Theory of Leadership Situational control Is the degree to which the leader can control and influence the outcomes of group effort. Measurements of situational control are based on: Leader-member relations (good to bad) Task structure (well to ill-defined) Position power (leader’s ability to reward and control) A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Summary of Findings from Fiedler’s Contingency Theory Task-motivated and socio-independent leaders perform best when they have the most control (highly favorable). Relationship-motivated leaders perform best when they have moderate control (moderately favorable). Task-motivated leaders have low control (highly unfavorable). a. Leader-member relations are good. b. Task is well structured. c. Leader has high position power. A combination of favorable and unfavorable factors. a. Leader-member relations are poor. b. Task is poorly structured. c. Leader has low position power. AMOUNT OF SITUATIONAL CONTROL BY LEADER High Moderate Low EXHIBIT 10-4 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership Fiedler’s Contingency Theory of Leadership Research findings Task-motivated style is best when the leader has very high or very low control of the situation. Relationship-motivated style best in situation under moderate or intermediate control. Socio-independent leaders function best when control is high. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership The Path-Goal Theory of Leadership Specifies what a leader must do to achieve high morale and productivity in a given situation. Focuses on helping employees find the right path to goal attainment. Assumes that the leader will choose the right leadership style to match the contingencies of a particular situation. Is based on expectancy theory in that its key propositions relate to motivation, satisfaction, and performance. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership The Path-Goal Theory of Leadership Choices for adjusting leadership styles to meet situational contingency demands: A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Path-Goal Theory of Leadership OUTCOMES Productivity Morale Personal characteristics of group members Demands of the Task (Contingency factors) Leadership Styles Directive Supportive Participative Achievement-oriented EXHIBIT 10-5 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Relationships in Path-Goal Leadership Style Situation in which Appropriate Directive Positively affects satisfaction and expectancies of subordinates working on ambiguous tasks. Negatively clearly defined Supportive dissatisfy - ing, stressful, or frustrating Participative who are ego-involved with nonrepetitive Achievement-oriented confidence that effort will lead to effective per formance EXHIBIT 10-6 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership The Situational Leadership Model Explains how a leader chooses a leadership style that is appropriate to the readiness of group members. Readiness is defined as the extent to which a group member has the ability and willingness or confidence to accomplish a task. As the readiness of group members increases, a leader should rely more on relationship-related leadership behaviors and less on task-related leadership behaviors. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

The Situational Model of Leadership Situational Leadership® is a registered trademark of the Center for Leadership Studies. Reprinted with the permission of the Center for Leadership Studies, Escondido, CA 92025. All rights reserved. EXHIBIT 10-7 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership The Normative Decision Model Leadership is a decision-making process in which the leader examines the situation and chooses the most effective decision-making style for the situation. Five styles of decision making: A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Contingency Theories of Leadership The matrix depicted in Exhibit 10-8 Is for time-driven group problems where a decision must be reached quickly. The decision-making style chosen depends on the situational factors as specified in the matrix: Decision significance to the success of the project. Importance of commitment of team members to the project. Leader’s expertise in relation to the problem. Likelihood of commitment by team to your solo decision. Group Support (team) for the organization’s objectives. Team competence in working together to solve the problem. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Transformational and Charismatic Leadership Transformational Leader Helps organizations and people make positive changes in the way they conduct their activities. Is closely linked to strategic leadership. Is involved in sweeping positive changes. Charisma Is the ability to lead others based on personal charm, magnetism, inspiration, and emotion. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Transformational and Charismatic Leadership Transformations: Raising people’s level of consciousness. Getting people to transcend their self-interests. Focusing people on the quest for self-fulfillment. Helping to develop a long-range perspective. Helping people understand the need for change. Investing managers with a sense of urgency. Committing to greatness. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Dimension and Corresponding Behaviors of Transformational Leadership EXHIBIT 10-9 A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Charismatic Leadership Charisma is in the eyes of the beholder. Key Characteristics of Charismatics: They have vision. They are masterful communicators. They inspire trust. They are energetic. They manage their impressions. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

360-Degree Feedback for Improving Leadership Effectiveness Is a formal evaluation system for use in improving leadership effectiveness. Input is in the form of a 360-degree survey of people who work for and with the supervisor. Self-ratings are compared to ratings of others. Differences in the two ratings indicate performance area opportunities for improvement. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Gender Differences in Leadership A Continuing Controversy: Do men and women have different leadership styles? There is no clear answer. Women use a more relationship-oriented style of leadership; that is, in general, they are more cooperative, participative, and empowering than men who tend toward a command-and-control, autocratic leadership style. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Leadership Substitutes and Followership Substitutes for Leadership: Group member characteristics Highly capable persons or groups (followers) can function with less leadership. Effective followers are self-managers, are committed, have competence and focus, and possess courage. Task Characteristics Highly standardized tasks that provide feedback and are intrinsically satisfying can substitute for leadership. Organizational factors Explicit plans with well-defined goals that are carried out by cohesive groups reduce the need for leadership. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.

Choosing an Appropriate Leadership Model Carefully diagnose the situation. Choose a leadership approach that best fits the situational deficiencies or opportunities. Observe the people to be led; come to understand their interests, goals, and concerns. Apply the chosen leadership approach. A. J. DuBrin, Fundamentals of Organizational Behavior, Second Edition. Copyright © 2002 by South-Western.