THE GROUP LEADERSHIP - WHY LEARN ABOUT LEADERSHIP: -Helps us understand group behavior, because it’s the leader who usually directs us toward our goals. -Knowing what makes a good leader is valuable in improving group performance. -Independent variable

LEARNING POINTS: Definition of leadership Theories of leadership Trust and leadership relation

1. DEFINITION: WHAT IS LEADERSHIP? Leadership and management are different concepts Within work environment, manager and leader are simply roles taken on by members of the team. Leadership is needed to create change. Key words: Influence, followers Management is needed to create orderly results. Keywords: Formal authority (to "manage" -- coordinate, schedule, liaise, contact, organize…) Does formal authority result in influence? Does it create followers?

HISTORY OF LEADERSHIP RESEARCH - SUMMARY A.WHAT HAVE WE DONE? 1.Trait Theories: Leaders are born. Find out what makes them leaders! 2.Behavioral Theories: Leadership can be learned. Find out the right behaviors! a.Ohio State and University of Michigan Studies -Initiating structure/production oriented vs. Consideration behavior /Employee oriented behaviors b.Blake and Mouton Leadership Grid 3.Contingency Theories: It all depends. Find out the behavioral contingency factors a.Fiedler’s Model a1.Cognitive resource theory b.Hersey and Blanchards Model (SLT) c.Leader-participation Theory (Vroom and Yetton) d.Path-goal theory

HISTORY OF LEADERSHIP RESEARCH - SUMMARY B. WHAT ARE WE DOING NOW? a. Leader-member exchange theory C. WHAT WIL WE DO MORE IN THE FUTURE? (Contemporary Theories) a. Charismatic Leadership (born quality + can also be leared + situation) b. Transformational Leadership (behaviors + situation)

A. TRAIT THEORIES OF LEADERSHIP (1940s-60s) THIS THEORY ASSUMES THAT LEADERS PERSONALITY ATTRIBUTES ARE THE KEYS TO LEADERSHIP This is what the initial, formal research into leadership was all about. There was a sense among researchers that some critical leadership traits could be isolated. There was also a feeling that people with such traits could then be recruited, selected, and installed into leadership positions. The aim was to find commonality or generalizability from an examination of the traits of leaders as diverse as Stalin, Hitler, Martin Luther King Jr., John F. Kennedy, Gandhi and Margaret Thatcher. Do these leaders have any trait in common? Is there a trait all leaders must possess?

RESULTS OF TRAIT STUDIES Although there was little consistency in the results of the various trait studies, some traits did appear more frequently than others: Emotional control Charisma Intelligence Ambition and energy Self confidence Honesty and integrity Job/task relevant knowledge High self-monitoring

MORE RECENT RESULTS OF TRAIT STUDIES Not very useful until matched with the Big Five Personality Framework Essential Leadership Traits Extroversion Sociable, dominant, moderately assertive, Conscientiousness Disciplined, keep commitments they make Openness Experience, novelty, creativity, flexible Emotional Intelligence (needs more research) Traits can predict leadership They are better at predicting leader emergence than effectiveness

THIS THEORY FOCUSES ON WHAT LEADERS DO B. BEHAVIORAL THEORIES THIS THEORY FOCUSES ON WHAT LEADERS DO With behaviors, researchers could rely on empirical evidence. Behaviors, contrary to traits, could be observed. It was thus decided to examine the behaviors of successful leaders (BORN VS MADE LEADERS)

The most important studies were those undertaken by the: 1 The most important studies were those undertaken by the: 1.Ohio State University 2.University of Michigan Initiating structure behavior: When the leader clearly defines the leader-subordinate *roles, establishes formal lines of *communication, and determines how *tasks are to be performed. Consideration behavior: The leader shows concern for sub-ordinates and attempts to establish a *warm, friendly, and supportive climate. Shows concern for followers’ *comfort, well-being, status, and satisfaction. Production oriented behavior: When a leader pays close attention to the work of sub- ordinates, explains work procedures, and is keenly interested in performance. Group members are *means for the end Employee oriented behavior: When the leader is interested in developing a *cohesive work group and in ensuring employees are satisfied with their jobs. Accepts *individual differences

3.Blake and Mouton Leadership Grid The Managerial Grid combines the Concern for People versus Concern for Production dichotomy proposed by both the Ohio State and University of Michigan studies. LAISSEZ FAIRE (COUNTRY CLUB) (1,9) TEAM (9,9) 9 CONCERN FOR PEOPLE ORGANIZATION MAN (5,5) AUTHORITY OBEDIENCE (9,1) IMPOVERISHED (1,1) 1 1 1 9 CONCERN FOR PRODUCTION

C. CONTINGENCY THEORIES Predicting leadership success is more complex than isolating a few traits or preferable behaviors. LEADERSHIP STYLE A LEADERSHIP EFFECTIVENESS SITUATIONAL VARIABLES LEADERSHIP STYLE B LEADERSHIP STYLE C LEADERSHIP STYLE D SITUATIONAL (CONTINGENCY) THEORIES TRIES EXPLAIN WHAT THOSE SITUATIONAL VARIABLES ARE

1.FIEDLER MODEL There are 2 factors to be considered: EFFECTIVE GROUP PERFORMANCE DEPENDS ON LEADERS’ STYLE AND THE DEGREE TO WHICH SITUATION GIVES CONTROL TO THE LEADER There are 2 factors to be considered: Leadership style (TASK VS. RELATIONSHIP ORIENTED) Fiedler assumes that leadership style is fixed He determines the style by Least Preferred Co-worker Questionnaire Situational factors (Matching the leader with the situation) Leader-member relations The degree of confidence, trust and respect members have for their leader Task structure The degree of procedure of job assignments (Structured vs. Unstructured) Position power The degree of influence that the leader has on power on: hiring, firing, promotions, salary increases…etc.

2.HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP THEORY (SLP) This model posits that the developmental levels of a leader's subordinates play the greatest role in determining which leadership styles are most appropriate (leader behaviors). Successful leadership is contingent upon the readiness of followers Commitment of followers (are they willing?) Competency of followers (are they able?) Leaders have two behavior categories Directive (task oriented) Supportive (relationship oriented)

(DEVELOPMENTAL LEVEL) Putting the two leadership behaviors identified by the Blanchard together on a grid, four leadership styles result: LEADERSHIP STYLES 9 S3 participating S2 Selling Supportive behavior EMPLOYEE READINESS (DEVELOPMENTAL LEVEL) S1 Telling S4 delegating 9 D3/(S3) D3/(S4) 1 1 9 Directive behavior 1 COMPETENCE D2/(S2) D1/(S1) 1 1 COMMITMENT 9

3. LEADER-MEMBER EXCHANGE THEORY Leaders may act differently towards different people THIS THEORY ASSUMES THAT LEADERS CREATE IN-GROUPS AND OUT-GROUPS The relation needs investment of both sides In-groups People in in-groups are trusted They receive undivided attention from the leader They are more likely to get privileges They have less turn over and greater job satisfaction They are chosen for their similarity to the leader in attitude and personality and also for their competency Out-groups They have more formal relations with the leader

4. PATH-GOAL THEORY (Robert House) Describes the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy. In particular, leaders: Clarify the path so subordinates know which way to go Remove roadblocks that are stopping them going there Increasing the rewards along the route Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold. This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors.

The Path-Goal Theory Telling followers what needs to be done. Giving appropriate guidance along the way. Consulting with followers and taking their ideas into account when making decisions and taking particular actions. Setting challenging goals, both in work and in self-improvement (and often together). High standards are demonstrated and expected. Considering the needs of the follower, showing concern for their welfare and creating a friendly working environment.

There are two types of contingency factors in path-goal theory: ENVIRONMENTAL CONTINGENCY FACTORS TASK STRUCTURE FORMAL AUTHORITY SYSTEM WORK GROUP SUBORDINATE CONTINGENCY FACTORS LOCUS OF CONTROL EXPERIENCE PERCEIVED ABILITY

4. PATH-GOAL THEORY (Robert House) House determined 4 leadership behaviors: Directive Telling followers what needs to be done. Giving appropriate guidance along the way. Giving them schedules of specific work to be done at specific times. Rewards may also be increased as needed Role ambiguity may be decreased (by telling them what they should be doing). This may be used when the task is unstructured and complex and the follower is inexperienced. This increases the follower's sense of security and control and hence is appropriate to the situation.

Supportive Considering the needs of the follower, showing concern for their welfare and creating a friendly working environment. This includes: increasing the follower's self-esteem making the job more interesting This approach is best when the work is stressful, boring or hazardous.

Participative Achievement oriented Consulting with followers and taking their ideas into account when making decisions and taking particular actions. This approach is best when the followers are expert and their advice is both needed and they expect to be able to give it. Achievement oriented Setting challenging goals, both in work and in self-improvement (and often together). High standards are demonstrated and expected. The leader shows faith in the capabilities of the follower to succeed. This approach is best when the task is complex

CONTEMPORARY ISSUES IN LEADERSHIP THE GROUP CONTEMPORARY ISSUES IN LEADERSHIP

WHAT IS CHARISMA? Charisma, originated in theology referring to a talent given by God as a free gift or favor, was first used to describe political leadership by Max Weber (1864-1920). Charisma is an extraordinary quality of an individual person. The power of charisma is mainly revealed by the demonstration of magic (or miracle). Since charisma goes beyond normal human qualities, it is regarded originally as supernatural.

WHAT IS CHARISMATIC LEADERSHIP? The theory assumes that (like in the definition) followers make attributions of “heroic” and/or “extraordinary” leadership abilities when they observe certain behaviors. Charismatic leaders: Describe goals by painting word pictures Have an exceptional ability to win the devotion and support of followers Have no fear of presenting their ideas to anyone who may be able to help them They are reputed to possess excellent persuasion and negotiation skills.

Their followers: Want to identify with them and emulate them Develop intense feelings about them Full-heartedly, even blindly, trusting the correctness of the leader's beliefs Have a feeling of affection to the leader and obeying the leader willingly Have a feeling of emotional involvement in the mission they are led into

Is charismatic leadership always a good thing? Taken literally history has proven the answer is no. One need only recall the Hitler and Mussolini is of the world to realize the potentially negative powers of charisma. Charisma of New CEOs Skews Financial Recommendations The use of charismatic language in CEO vision statements can lead investors to make poor decisions about their purchase of securities. http://www.redorbit.com/news/video/science/5/charisma_of_new_ceos_skews_financial_recommendations/30203/ Most experts believe that behaviors exhibiting charisma can be learned and taught.

The primary difference between ethical and unethical charisma can be seen in the motive of the leader. The ethical charismatic wants what is good for the organization and the employees Ethical charismatics seek to develop their followers through empowerment The unethical counterpart is motivated by personal power and achievement and pursues anything, which makes him or her look better and stronger. Unethicals hold power close and strive to control employees

2. TRANSACTIONAL LEADERSHIP VS. TRANSFORMATIONAL LEADERSHIP The doing or performing of any business; management of any affair; performance. İş görme, işlem... Assumptions: People are motivated by reward and punishment. Social systems work best with a clear chain of command. When people have agreed to do a job, a part of the deal is that they cede authority to their manager. The prime purpose of a subordinate is to do what their manager tells them to do. Leaders guide their followers in the direction of established goals by clarifying role and task requirements--TELLING Describes managers who apply the insights of the leader- behavior and contingency theories

In the Leadership vs. Management spectrum, transactional leadership is very much towards the management end of the scale. The main limitation is the assumption of 'rational man', a person who is largely motivated by money and simple reward, and hence whose behavior is predictable. The underlying psychology is Behaviorism, including the Classical Conditioning of Pavlov and Skinner's Operant Conditioning.

TRANSFORM... 1. To change the form of; to change in shape or appearance; to metamorphose; as, a caterpillar is ultimately transformed into a butterfly. 2. To change into another substance; to transmute; as, the alchemists sought to transform lead into gold. 3. To change in nature, disposition, heart, character, or the like; to convert

Transformational Leadership People will follow a person who inspires them. A person with vision and passion can achieve great things. The way to get things done is by injecting enthusiasm and energy. "A transformational leader is someone who can take on the responsibility for revitalizing an organization. They define the need for change, create new visions, mobilize commitment to those visions, and ultimately transform an organization.”

Style: 1.Developing the vision Transformational Leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker. 2.Selling the vision The next step, which in fact never stops, is to constantly sell the vision. This takes energy and commitment, as few people will immediately buy into a radical vision, and some will join the show much more slowly than others. In order to create followers, the Transformational Leader has to be very careful in creating trust, and their personal integrity is a critical part of the package that they are selling. In effect, they are selling themselves as well as the vision.

3.Leading the change (MOTIVATION - COMMITMENT) Transformational Leaders are always visible. They show by their attitudes and actions how everyone else should behave. They also make continued efforts to motivate and rally their followers, constantly doing the rounds, listening, soothing and enthusing. (INDIVIDUALIZED CONSIDERATION) If the people do not believe that they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to the vision. Transformational Leader uses ceremonies, rituals and other cultural symbolism to sustain motivation. (INSPIRATION) Overall, they balance their attention between action that creates progress and the mental state of their followers.

The common characteristics of a transformational leader: They identify themselves as change agents. Their professional and personal image was to make a difference and transform the organization that they had assumed responsibility for. They are courageous individuals. These are prudent risk takers, individuals who take a stand. They believe in people They are powerful yet sensitive of other people, and ultimately they work toward the empowerment of others. They are people-oriented and believe that success comes first and last through deep and sustained commitment. They have charismatic power

They are value-driven. Each transformational leader is able to articulate a set of core values and exhibited behavior that was quite congruent with their value positions. They are life long learners. A transformational leader is able to talk about mistakes he/she has made without seeing them as failures but learning experiences. They have the ability to deal with complexity, ambiguity and uncertainty. They are visionaries (INSPIRATIONAL MOTIVATION/IDEALIZED INFLUENCE) The ability to dream, the ability to translate those dreams and images so that other people can share them (Tichy & Devanna, 1990, pp. 4, 271-280).

HONESTY AND TRUTHFULLNESS 3. TRUST AND LEADERSHIP Trust is a psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out. A positive expectation that another will not act opportunistically. “Part of the leader’s task is working with people to find and solve problems, but whether leaders gain access to the knowledge and creative thinking they need to solve problems depends on how much people trust them. Trust and trust-worthiness modulate the leader’s access to knowledge and cooperation.” (D.E. Zand, 1997) BEHAVIORAL ASPECT: HONESTY AND TRUTHFULLNESS EMOTIONAL ASPECT: Belief that the trusted person has your interests at heart, even if yours aren’t necessarily in line with theirs. Caring and supportive behavior is part of the emotional bond JOB RELATED ASPECT: Does the person know what he or she is talking about? You’re unlikely to listen to or depend on someone whose abilities you don’t respect. Consider: the effect of time on model Opinion: Can you rebuild trust?

SUMMARY: The early search for a set of universal leadership traits failed. However, recent efforts using the Big Five personality framework show strong and consistent relationships between leadership and extraversion, conscientiousness, and openness to experience. The behavioral approach’s major contribution was narrowing leadership into task-oriented (initiating structure) and people-oriented (consideration) styles. By considering the situation in which the leader operates,contingency theories promised to improve on the behavioral approach,but only LPC theory has fared well in leadership research.

SUMMARY Research on charismatic and transformational leadership has made major contributions to our understanding of leadership effectiveness. Organizations want managers who can exhibit transformational leadership qualities and who have vision and the charisma to carry it out. Effective managers must develop trusting relationships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replacing bureaucratic rules in defining expectations and relationships. Tests and interviews help identify people with leadership qualities. Managers should also consider investing in leadership training such as formal courses, workshops, rotating job responsibilities, coaching, and mentoring.