Chapter 12 Leadership: New Concepts and Applications John M. Ivancevich Michael T. Matteson Slides Prepared by Bruce R. Barringer University of Central Florida © McGraw-Hill Companies, Inc., 1999

Learning Objectives Slide 1 of 2 Describe the Vroom-Jago Leadership Model. Discuss the attribution theory approach to leadership. Describe what constitutes charismatic leadership. Compare transactional and transformational leadership. © McGraw-Hill Companies, Inc., 1999

Learning Objectives Slide 2 of 2 Identify the major issues in multicultural leadership. © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 1 of 7 Description of Model A leadership model that specifies which leadership decision-making procedures will be most effective in each of several different situations. Two of the proposed leadership styles are autocratic (AI and AII); two are consultative (CI and CII); and one is oriented toward joint decisions (decisions made by the leader and the group, GII). © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 2 of 7 Assumptions The model should be of value to managers in determining which leadership styles they should use in various situations. No single style is applicable to all situations. The main focus should be the problem to be solved and the situation in which the problem occurs. © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 3 of 7 Assumptions (continued) The leadership style used in one situation should not constrain the styles used in other situations. Several social processes influence the amount of participation by subordinates in problem solving. © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 4 of 7 Features of the Model Selection of the appropriate decision making process involves considering two criteria of decision effectiveness: Decision quality - referring to the extent to which the decision impacts job performance. Subordinate commitment - refers to how important it is that the subordinate be committed to or accept the decision in order that it may be successfully implemented. © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 5 of 7 Features of the Model Five Different Decision Styles Autocratic (A) - the leader makes the decision without input from subordinates. Consultative (C) - subordinates have some input, but you make the decision. Group (G) - The group makes the decision; you (as leader) are just another group member. Delegated (D) - You give exclusive responsibility to subordinates. © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 6 of 7 Features of the Model Situational Diagnosis Performed to determine the most appropriate decision making style for a particular situation. Examples of criteria to consider: How important is the technical quality of the decision? How important is subordinate commitment to the decision? Do you have sufficient information to make a high quality decision? © McGraw-Hill Companies, Inc., 1999

Vroom-Jago Leadership Model Slide 7 of 7 Validity of the Model The model currently lacks complete empirical evidence establishing its validity. However, the model is thought to be consistent with what we know about the benefits of subordinate participation in decision making. © McGraw-Hill Companies, Inc., 1999

Exhibit 12.2: Example Vroom-Jago Rules of Thumb Rules to improve decision quality: 1. Avoid the use of AI when: a. The leader lacks the necessary information. 2. Avoid the use of GII when: a. Subordinates do not share the organizational goals. b. Subordinates do not have the necessary information. 3. Avoid the use of AII and CI when: b. The problem is unstructured. 4. Move toward GII when: b. Subordinates share the organizational goals. c. There is conflict among subordinates over preferred solutions. © McGraw-Hill Companies, Inc., 1999

Attribution Theory of Leadership Description of Theory According to attribution theory, in observing subordinates, a leader searches for informational cues as to “why” something is happening and then attempts to construct causal explanations that guide her leadership behavior. © McGraw-Hill Companies, Inc., 1999

Exhibit 12.4: An Attributional Leadership Model Information Cues - Distinctiveness - Consistency - Consensus Perceived Source of Responsibility Observation of Poor Quality or Production - Rejects - Excess scrap - Returned products - Excessive production costs Causal Attribution of Poor Quality Internal causes - Low effort - Low commitment - Lack of ability External causes - Improper equipment - Unfair deadlines Leader Behavior in Response to Attributions - Reprimand - Transfer - Demotion - Redesign job - Personal concern - Training Linkage 1 Linkage 2 © McGraw-Hill Companies, Inc., 1999

Charismatic Leadership Slide 1 of 2 Defining Charismatic Leadership Charismatic leaders have a combination of charm and personal magnetism that contribute to a remarkable ability to get other people to endorse to a remarkable ability to get other people to endorse their vision and promote it passionately. © McGraw-Hill Companies, Inc., 1999

Charismatic Leadership Slide 2 of 2 Two Types of Charismatic Leaders Visionary Charismatic Leaders Through communication ability, the visionary charismatic leader links followers’ needs and goals to job or organizational goals. Crisis-Based Charismatic Leaders The crisis-produced charismatic leader communicates clearly what actions need to be taken and what their consequences will be. © McGraw-Hill Companies, Inc., 1999

Exhibit 12.5: Stages of Charismatic Leadership Stage One - Detecting unexploited opportunities and deficiencies in the present situation - Sensitivity to constituents’ needs - Formulating an idealized strategic vision Stage Two - Communicating the vision - Articulating the status quo as unacceptable and the vision as the most attractive alternative - Articulating motivation to lead followers Stage Three - Building trust through technical expertise, personal risk-taking, self- sacrifice, and unconventional behavior Stage Four - Demonstrating the means to achieve the vision through role modeling, empowerment, & unconventional tactics © McGraw-Hill Companies, Inc., 1999

Transactional and Transformational Leadership Transactional Leadership Transformational Leadership By expressing a vision, the transformational leader persuades followers to work hard to achieve the goals envisioned. The leader’s vision provides the follower with motivation for hard work that is self-rewarding (internal) The leader helps the follower identify what must be done to accomplish the desired results: better quality output, more sales or services, reduced cost of production © McGraw-Hill Companies, Inc., 1999

Exhibit 12.7: Transactional Leadership Recognizes what F must do to attain designated outcomes L = Leader F = Follower L: L: Recognizes what F needs Clarifies how F’s need fulfillment will be exchanged for enacting role to attain designated outcomes L: Clarifies F’s role L: Recognizes value of designated outcomes (need-fulfilling value for F) Feels confidence in meeting role requirements F: F: Develops motivation to attain desired outcomes F: © McGraw-Hill Companies, Inc., 1999

Factors that Describe Transformational Leaders Intellectual Stimulation Management by Exception Individual Attention Contingent Reward Charisma © McGraw-Hill Companies, Inc., 1999