LEADERSHIP THEORIES TRAIT THEORY BASES OF INFLUENCE (POWER) GHISELLI BASES OF INFLUENCE (POWER) FRENCH & RAVEN BEHAVIORAL THEORIES OHIO STATE UNIVERSITY BLAKE & MOUTON CONTINGENCY THEORIES FIEDLER HOUSE & MITCHELL VROOM & YETTON ROLE THEORIES MINTZBERG

TRAIT APPROACHES TO LEADERSHIP GHISELLI LEADERS ARE “BORN,” NOT MADE PHYSICAL CHARACTERISTICS APPEARANCE, HEIGHT, AGE PERSONALITY EXTROVERSION, PERSISTENCE, SELF-ASSURANCE, DECISIVENESS INTELLIGENCE KNOWLEDGE, ABILITY, JUDGMENT SOCIAL CHARACTERISTICS TACT, DIPLOMACY, SOCIABILITY, FLUENCY THE BIG FIVE PERSONALITY TRAITS *** EXTROVERSION (AMBITION, ENERGY) ** CONSCIENTIOUSNESS ** OPENNESS TO EXPERIENCE * EMOTIONAL STABILITY (SELF-CONFIDENCE) AGREEABLENESS

CHARISMATIC LEADERSHIP VISION & ARTICULATION PROPOSES A BETTER FUTURE – AN OPTIMISTIC GOAL DELIVERED CLEARLY IN A CONVINCING FASHION PERSONAL RISK WILLING TO TAKE RISKS & INCUR COSTS TO ACHIEVE THE VISION SELF-SACRIFICE WILL BE NECESSARY ENVIRONMENTAL SENSITIVITY KNOWS WHETHER THE ENVIRONMENT WILL BE SUPPORTIVE KNOWS WHAT RESOURCES ARE NEEDED TO BRING ABOUT CHANGE SENSITIVITY TO FOLLOWERS PERCEPTIVE OF OTHERS’ ABILITIES, NEEDS & FEELINGS TAPS INTO FOLLOWER EMOTIONS UNCONVENTIONAL BEHAVIOR MAY DO THINGS THAT ARE NOVEL, OR CONTRARY TO THE NORMS IS THE VISION VALUE-BASED? WILL THE FOLLOWERS BECOME ENTHUSIASTIC? DO THE PEOPLE BELIEVE THE VISION IS ATTAINABLE? ARE CHARISMATIC LEADERS “BORN” OR CAN THEY BE TAUGHT? CORRELATED WITH HIGH SATISFACTION AMONG FOLLOWERS EFFECTIVE WHEN THERE IS AN IDEOLOGICAL PART TO THE TASK, OR FACING STRESS & UNCERTAINTY CHARISMATIC LEADERS – DON’T TOLERATE CRITICISM, SURROUND THEMSELVES WITH “YES” PEOPLE 29 FIRMS STUDY --- FOUND AN ABSENCE OF EGO-DRIVEN CHARISMATIC LEADERS

TRANSFORMATIONAL LEADERSHIP INSPIRATIONAL, IDEA-ORIENTED, VISIONARY DRAMATIC, AROUSES INTENSE FEELINGS COMMUNICATES HIGH EXPECTATIONS & A NEED FOR CHANGE UNPREDICTABLE RELIES ON REFERENT OR CHARISMATIC POWER RAISES LEVEL OF AWARENESS AND COMMITMENT GETS FOLLOWERS TO TRANSCEND THEIR SELF-INTERESTS REQUIRES TRUST AND BELIEF IN THE VISION PRESENTED TRANSACTIONAL LEADERSHIP EXCHANGES REWARDS FOR SERVICES MANAGEMENT BY EXCEPTION (Watches for deviations) KEEPS THE SYSTEM OPERATING SMOOTHLY USES REWARD AND COERCIVE POWER BASES RECOGNIZES WHAT WORKERS WANT & TRIES TO DELIVER IT REWARDS ACCORDING TO WORKER EFFORT RESPONSIVE TO WORKER SELF-INTERESTS IS TRANSFORMATIONAL LEADERSHIP BUILT “ON TOP OF” TRANSACTIONAL LEADERSHIP, OR IS IT JUST A SPECIAL CASE OF CHARISMATIC LEADERSHIP?

SUMMARY OF TRAIT APPROACHES TO LEADERSHIP ASSUMPTION LEADERS ARE BORN, NOT MADE! IMPLICATION WE MUST BE VERY CAREFUL IN HOW WE SELECT OUR LEADERS LIMITATIONS IT OVERLOOKS THE NEEDS OF FOLLOWERS IT IGNORES SITUATIONAL FACTORS CAUSE AND EFFECT ARE NOT CLEARLY DEFINED DO SELF-CONFIDENT LEADERS CAUSE FIRMS TO BE SUCCESSFUL, OR DOES A SUCCESSFUL FIRM ALLOW A LEADER TO FEEL SELF-CONFIDENT?

BASES OF LEADER POWER & INFLUENCE FRENCH & RAVEN (59) LEGITIMATE POWER Authority to command, based on the position REWARD POWER Able to award positive, desired outcomes COERCIVE POWER Able to threaten, punish or harm EXPERT POWER Influence based on knowledge and information REFERENT POWER Influence based on charisma, identification and trust

MOST LIKELY OUTCOMES OF LEADER POWER & INFLUENCE YUKL (89) RESISTANCE COERCIVE COMPLIANCE LEGITIMATE REWARD COMMITMENT EXPERT REFERENT

GUIDELINES FOR USING POWER YUKL (89) EXPERT POWER ACT CONFIDENT AND DECISIVE KEEP INFORMED DON’T THREATEN SUBORDINATES’ SELF-ESTEEM – BE APPROACHABLE WILLING TO SHARE YOUR KNOWLEDGE WITH OTHERS REFERENT POWER TREAT SUBORDINATES FAIRLY DEFEND SUBORDINATES’ INTERESTS BE SENSITIVE TO SUBORDINATES’ NEEDS & FEELINGS LEGITIMATE POWER BE CORDIAL, POLITE, AND CONFIDENT MAKE APPROPRIATE REQUESTS FOLLOW PROPER CHANNELS EXERCISE POWER REGULARLY AND ENFORCE COMPLIANCE REWARD POWER VERIFY COMPLIANCE AND ACCOMPLISHMENTS OFFER REWARDS FOR DESIRED ACTIONS AND BEHAVIORS OFFER CREDIBLE REWARDS THAT ARE DESIRED BY SUBORDINATES COERCIVE POWER INFORM SUBORDINATES OF RULES AND PENALTIES UNDERSTAND THE SITUATION BEFORE ACTING & WARN BEFORE PUNISHING ADMINISTER PUNISHMENT CONSISTENTLY & PUNISH IN PRIVATE

BEHAVIORAL LEADERSHIP THEORIES OHIO STATE STUDIES INITIATING STRUCTURE v. CONSIDERATION FIELD STUDY: IS = Satisf down, C = Satisf up MICHIGAN STUDIES JOB-CENTERED v. EMPLOYEE-CENTERED FIELD EXPERIMENT: JC = Satisf down, EC = Satisf up JC = Productivity up 25%, EC = Productivity up 20% THE MANAGERIAL GRID BLAKE & MOUTON (64) CONCERN FOR PEOPLE CONCERN FOR PRODUCTION FIVE STYLES Impoverished, Authority/Obedience (Task), Middle of the Road, Country Club, Team IS THERE A THIRD DIMENSION---DEVELOPMENT ORIENTED BEHAVIOR?

THE MANAGERIAL GRID BLAKE & MOUTON (64)

SUMMARY OF BEHAVIORAL APPROACHES TO LEADERSHIP ASSUMPTION Leaders are effective because of the actions they take IMPLICATION We can learn to become leaders by studying what effective leaders do LIMITATIONS Situational factors that influence success or failure are ignored Leaders need to be flexible…you can’t lead the same way all the time

LEADERSHIP PERSPECTIVES JAGO (82) APPROACH UNIVERSAL CONTINGENT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - TRAITS TRAIT FIEDLER’S THEORIES CONTINGENCY THEORY FOCUS ON - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - OHIO STATE PATH-GOAL MICH STUDIES VROOM-YETTON BEHAVIORS LEADER GRID LIFE-CYCLE

CONTINGENCY THEORY OF LEADERSHIP FIEDLER (65) LEADER CHARACTERISTICS (Least-Preferred Coworker Scale) HIGH LPC --- EMPLOYEE RELATIONS ORIENTED LOW LPC --- TASK ORIENTED SITUATIONAL CONSIDERATIONS LEADER-MEMBER RELATIONS TASK STRUCTURE LEADER POSITION POWER FAVORABLE LEADER SITUATIONS MOST FAVORABLE - - - - - - - - - - - - - LEAST FAVORABLE LEADER-MEMBER RELATIONS G G G G N N N N TASK STRUCTURE G G N N G G N N LEADER POSITION POWER G N G N G N G N EFFECTIVE STYLE TASK EMPLOYEE TASK FIEDLER’S CONTRIBUTIONS LEADER EFFECTIVENESS IS SITUATIONAL TASK LEADERSHIP IS VALUABLE AND IMPORTANT MODIFY SITUATIONS TO FIT THE LEADER’S STYLE

MANIPULATING THE SITUATION MODIFY LEADER-MEMBER RELATIONS SPEND MORE (OR LESS) TIME WITH SUBORDINATES ORGANIZE SOME OFF-WORK GROUP ACTIVITIES INCREASE (OR DECREASE) YOUR AVAILABILITY TO WORKERS RAISE MORALE BY OBTAINING POSITIVE OUTCOMES FOR SUBORDINATES TRANSFER SUBORDINATES INTO (OR OUT OF) YOUR UNIT REQUEST COMPATIBLE PEOPLE FOR WORK IN YOUR GROUP MODIFY TASK STRUCTURE ASK FOR TASKS WHICH ARE MORE STUCTURED LEARN ALL YOU CAN ABOUT THE TASK BREAK THE JOB DOWN INTO SMALLER SUB-TASKS LEAVE THE TASK IN RELATIVELY VAGUE FORM ENRICH JOBS THROUGH HORIZONTAL AND VERTICAL EXPANSION MODIFY POSITION POWER SHOW SUBORDINATES WHO’ BOSS --- EXERCISE YOUR POWERS FULLY BECOME AN EXPERT ABOUT JOBS AS SOON AS POSSIBLE ALL INFORMATION AND FEEDBACK TO SUBORDINATES IS CHANNELED THROUGH YOU ASK MEMBERS TO PARTICIPATE IN DECISIONS AND PLANNING TRY TO BE “ONE OF THE GANG” --- DOWNPLAY YOUR POWER LET ASSISTANTS EXERCISE MORE POWER ASK MANAGEMENT TO GIVE YOU MORE DISCRETION AND AUTONOMY

LIFE-CYCLE (MATURITY) THEORY (SITUATIONAL LEADERSHIP THEORY) HERSEY & BLANCHARD (77) LEADER BEHAVIORS NEED TO VARY, DEPENDING ON THE MATURITY OF THE WORKERS DIRECTIVE STYLE (TELLING) GIVES CLEAR DIRECTION & INSTRUCTIONS TO IMMATURE EMPLOYEES FOLLOWERS ARE UNABLE AND UNWILLING (INSECURE) COACHING STYLE (SELLING) EXPANDS TWO-WAY COMMUNICATION, HELPS MATURING EMPLOYEES BUILD CONFIDENCE AND MOTIVATION FOLLOWERS ARE UNABLE, BUT WILLING TO TRY SUPPORTING STYLE (PARTICIPATING) EMPLOYEE FEEL COMPETENT, ACTIVE TWO-WAY COMMUNICATION STILL NEEDED FOR SHARED DECISIONS FOLLOWERS ARE ABLE BUT APPREHENSIVE AUTONOMOUS STYLE (DELEGATING) GIVES RESPONSIBILITIES FOR PLANNING AND DECISION MAKING TO HIGHLY MATURE EMPLOYEES FOLLOWERS ARE ABLE AND WILLING TASK BEHAVIORS START OUT HIGH, AND GRADUALLY DECLINE RELATIONSHIP BEHAVIORS START LOW, BUILD, THEN DECLINE AGAIN AN INTUITIVE THEORY, BUT EMPIRICAL SUPPORT HAS NOT BEEN STRONG

PATH-GOAL THEORY OF LEADERSHIP HOUSE & MITCHELL (74) SITUATIONAL FACTORS CHARACTERISTICS OF SUBORDINATES LOCUS OF CONTROL EXPERIENCE PERCEIVED ABILITY CHARACTERISTICS OF THE ENVIRONMENT TASK STRUCTURE FORMAL AUTHORITY SYSTEM WORK GROUP LEADER STYLES DIRECTIVE SUPPORTIVE ACHIEVEMENT-ORIENTED PARTICIPATIVE THE LEADER COMPENSATES FOR THINGS LACKING IN EITHER THE EMPLOYEE OR THE WORK SETTING TO HELP THE WORKER PERFORM EFFECTIVELY

PATH-GOAL LEADERSHIP STYLES DIRECTIVE LETS SUBORDINATES KNOW WHAT IS EXPECTED PLANS AND SCHEDULES WORK TO BE DONE GIVES SPECIFIC GUIDANCE -- WHAT SHOULD BE DONE AND HOW IT SHOULD BE DONE MAINTAINS CLEAR STANDARDS OF PERFORMANCE SUPPORTIVE SHOWS CONCERN FOR WELL-BEING OF SUBORDINATES TREATS MEMBERS AS EQUALS DOES LITTLE THINGS TO MAKE THE WORK MORE PLEASANT IS FRIENDLY AND APPROACHABLE ACHIEVEMENT-ORIENTED SETS CHALLENGING GOALS EXPECTS SUBORDINATES TO PERFORM AT THE HIGHEST LEVEL SEEKS IMPROVEMENT IN PERFORMANCE, WHILE SHOWING CONFIDENCE IN WORKERS PARTICIPATIVE CONSULTS WITH SUBORDINATES SOLICITS SUGGESTIONS TAKES SUGGESTIONS SERIOUSLY INTO CONSIDERATION BEFORE MAKING DECISIONS

VERTICAL DYAD (EXCHANGE) MODEL (LEADER-MEMBER EXCHANGE MODEL) GRAEN (75) LEADERS INVEST THEIR TIME & ATTENTION IN THOSE EXPECTED TO PERFORM BEST LEADER CREATES AN “IN-GROUP” (THE “FAVORED FEW”) & AN “OUT-GROUP” IN-GROUPS AND OUT-GROUPS MAY DEMONSTRATE THE “SELF-FULFILLING PROPHESY” IN-GROUPS RECEIVE SPECIAL DUTIES AND HAVE SPECIAL PRIVILEGES ARE GIVEN MORE AUTONOMY AND RESPONSIBILITY EXPERIENCE HIGHER SATISFACTION ARE MORE PRODUCTIVE ARE PART OF THE LEADER’S SUPPORT NETWORK OUT_GROUPS ARE NOT TRUSTED ARE NOT GIVEN DESIRABLE WORK ASSIGNMENTS RECEIVE LESS LEADER TIME AND ATTENTION “LIVE DOWN” TO LEADER EXPECTATIONS ARE LESS LIKELY TO SUPPORT THE LEADER IN-GROUP MEMBERS SELECTED BASED ON: COMPETENCE AND ABILITY PERSONAL COMPATIBILITY WITH THE LEADER

SUBSTITUTES FOR LEADERSHIP KERR & JERIMER (78) SUBSTITUTES ARE FACTORS THAT CAN NEUTRALIZE THE INFLUENCE OF LEADER BEHAVIOR LOOK FOR CHARACTERISTICS OF: THE SUBORDINATES THE TASK THE ORGANIZATION FOR INITIATING STRUCTURE ABILITY AND PROFESSIONAL TRAINING OF SUBORDINATES STANDARDIZED, UNAMBIGUOUS, ROUTINIZED TASKS DETAILED RULES & PROCEDURES PROVIDED BY THE ORGANIZATION FOR CONSIDERATION INTRINSIC APPEAL OF THE TASK ITSELF ESTEEM OF PROFESSIONAL COLLEAGUES SUPPORTIVE AND COHESIVE WORK GROUP

SUMMARY OF CONTINGENCY THEORIES THE CONTINGENCY THEORY Fiedler (65) PARTICIPATIVE LEADERSHIP THEORY Vroom & Yetton (73) PATH-GOAL THEORY House & Mitchell (74) VERTICAL DYAD (LEADER-MEMBER EXCHANGE) THEORY Graen (75) LIFE-CYCLE (MATURITY) THEORY Hersey & Blanchard (77) SUBSTITUTES FOR LEADERSHIP Kerr & Jerimer (78) CONCLUSIONS RE: CONTINGENCY THEORIES THERE IS NO “ONE BEST WAY” TO LEAD LEADERS SHOULD KNOW THEIR OWN PREFERRED STYLE KNOW HOW TO CAREFULLY DIAGNOSE YOUR WORK SITUATION UNDERSTAND WHICH ACTIONS TO TAKE TO IMPROVE THE SITUATION

MANAGERIAL ROLES MINTZBERG (73) INTERPERSONAL ROLES Figurehead (Ceremonial) Leader (Supervisor) Liaison (Linking-Pin) INFORMATIONAL ROLES Monitor Disseminator Spokesperson DECISIONAL ROLES Innovator (Entrepreneur) Disturbance Handler (Crisis) Resource Allocator Negotiator

LEADERSHIP AND TRUST FIVE DIMENSIONS OF TRUST AN EXPECTATION THAT THE LEADER WILL NOT TAKE UNFAIR ADVANTAGE OF ME IS MY LEADER TRUSTWORTHY? FIVE DIMENSIONS OF TRUST INTEGRITY -- honest and truthful COMPETENCE -- has good technical knowledge & interpersonal skills CONSISTENCY -- is reliable, predictable, and has good judgement LOYALTY -- will look out for me and protect me; won’t take advantage OPENNESS -- will talk to me and tell me the truth (what’s going on) DETERRENCE-BASED TRUST --WE CAN RETALIATE OR STRIKE BACK IF HARMED…DON’T REALLY HAVE A HISTORY KNOWLEDGE-BASED TRUST --CAN PREDICT WHAT WILL HAPPEN BASED ON EXPERIENCE…GIVE A SECOND CHANCE? IDENTIFICATION-BASED TRUST --- KNOW EACH OTHER INTIMATELY, ACT FOR EACH OTHER BASIC PRINCIPLES OF TRUST MISTRUST DRIVES OUT TRUST TRUST BEGETS TRUST GROWTH OFTEN MASKS DISTRUST DECLINE OR DOWNSIZING TESTS THE HIGHEST LEVELS OF TRUST TRUST INCREASES COHESION MISTRUSTING GROUPS SELF-DESTRUCT MISTRUST GENERALLY REDUCES PRODUCTIVITY

CONTEMPORARY ISSUES IN LEADERSHIP DO MEN & WOMEN LEAD DIFFERENTLY? The similarities outweigh the differences A SLIGHT TENDENCY FOR WOMEN Lean toward participative, negotiable, information-sharing styles This tendency declines when women are in male-dominated jobs A SLIGHT TENDENCY FOR MEN To be more directive and rely on the formal authority of their position TEAM LEADERSHIP Difficult for managers to switch from traditional roles LEARN TO BECOME: A Facilitator A Liaison A Troubleshooter A Conflict Manager A Coach EMPOWERMENT Be careful about jumping on the bandwagon -- does it “fit?” IT ASSUMES A UNIVERSAL APPROACH TO LEADERSHIP DOES THE SITUATION CALL FOR MORE EMPOWERMENT?

4. IMPORTANCE OF FOLLOWERS The qualities of effective followers: THEY MANAGE THEMSELVES WELL – CAN THINK, WORK INDEPENDENTLY THEY ARE COMMITTED TO THEIR WORK THEY ARE COMPETENT AND WORK TO HIGHER STANDARDS THAN THEIR JOB REQUIRES THEY ARE HONEST AND CREDIBLE 5. IMPACT OF NATIONAL CULTURE Culture is an important situational variable HIGHER POWER-DISTANCE – autocratic leadership style is preferred Arab, Far East, Latin countires LOWER POWER-DISTANCE – more success with the participative style USA Canada, Scandinavian countries 6. BIOLOGICAL IMPACTS ON LEADERSHIP Seratonin improves sociability and reduces aggression (PROZAC) Testosterone increases competitive drive and assertiveness Women in professional jobs have higher levels 7. MORAL DIMENSIONS OF LEADERSHIP What sort of example does the leader set? IS THE LEADER A GOOD ROLE MODEL? CORRUPTION WITHIN THE FIRM OFTEN STARTS WITH BAD EXAMPLES AT THE TOP