Chapter 8 Leadership

Questions for Consideration Questions for Consideration Leadership Questions for Consideration Questions for Consideration 1. What is the difference between a manager and a leader? 2. Are there specific traits, behaviours, and situations that affect how one leads? 3. How does a leader lead with vision? 4. Can a person be an informal leader? 5. What is self-leadership? 6. What are some of the hot topics in leadership?

Exhibit 8-1 Distinguishing Leadership From Managership Engages in day-to-day caretaker activities: Maintains and allocates resources Exhibits supervisory behaviour: Acts to make others maintain standard job behaviour Administers subsystems within organizations Asks how and when to engage in standard practice Acts within established culture of the organization Uses transactional influence: Induces compliance in manifest behaviour using rewards, sanctions, and formal authority Relies on control strategies to get things done by subordinates Status Quo supporter and stabilizer Leadership Formulates long-term objectives for reforming the system: Plans strategy and tactics Exhibits leading behaviour: Acts to bring about change in others congruent with long-term objectives Innovates for the entire organization Asks what and why to change standard practice Creates vision and meaning for the organization Uses tranformational influence: Induces change in values, attitudes, and behaviour using personal examples and expertise Uses empowering strategies to make followers internalize values Status Quo challenger and change creator Material pertinent to this illustration is found on pages 249-250. According to Kanungo, leaders provide vision and strategy; management implements that vision and strategy, coordinates and staffs the organization, and handles day-to-day problems.

Leadership as Supervision Three general questions Are there a particular set of traits that all leaders have, making them different from nonleaders? Are there particular behaviours that make for better leaders? How much impact does the situation have on leaders? Material pertinent to this discussion is found on pages 250-251. These theories examine how leaders/managers operate on a day-to-day level, supervising employees to get things done.

Trait Theories Trait: characteristics of the person Physical Characteristics Abilities Personality Traits Traits consistently associated with leadership Ambition and energy The desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge Material pertinent to this discussion is found on pages 251-252. Overall, the cumulative findings from more than half a century of research lead us to conclude that some traits increase the likelihood of success as a leader, but none of the traits guarantees success

Exhibit 8-2 What CEOs Identify as Leadership Traits Communication skills Ability to motivate people Honesty Ability to listen Team-building expertise Analytical skills Aggressiveness in business Material pertinent to this discussion is found on page 251.

Emotional Intelligence and Leadership EI is the best predictor of who will emerge as a leader. IQ and technical skills are "threshold capabilities." They're necessary but not sufficient requirements for leadership. Leaders need: self-awareness, self-management, self-motivation, empathy, and social skills to become a star performer. These are the components of EI. Material pertinent to this discussion is found on page 252. It's the possession of the five components of emotional intelligence--self-awareness, self-management, self-motivation, empathy, and social skills--that allows an individual to become a star performer. Without EI, a person can have outstanding training, a highly analytical mind, a long-term vision, and an endless supply of terrific ideas, but still not make a great leader. This is especially true as individuals move up in an organization.

Behavioural Theories of Leadership Propose that specific behaviours differentiate leaders from nonleaders Initiating Structure (e.g., task-orientation, work-orientation, production-orientation) Consideration (employee needs and concerns) Examples Ohio Studies, Michigan Studies, Managerial Grid Material pertinent to this discussion is found on pages 252-253. Each of the three behavioural approaches received some empirical support for the idea that being people oriented was an important behaviour of leaders, although there were also exceptions in each case. In the Ohio studies, leaders who were production oriented (that is, high on initiating structure) experienced greater rates of grievances, absenteeism, and turnover, and lower levels of job satisfaction from workers performing routine tasks. In the Michigan studies, employee-oriented leaders were associated with higher group productivity and higher job satisfaction. Production-oriented leaders tended to be associated with low group productivity and lower job satisfaction.

Exhibit 8-3 The Managerial Grid High 9 1,9 9,9 Country club management Team management 8 Thoughtful attention to needs Work accomplishment is from of people for satisfying relation- committed people who have a ships leads to a comfortable, "common stake" in organization's friendly organization atmos- purpose.This leads to relationships 7 phere and work tempo. of trust and respect. 6 5 Material pertinent to this illustration is found on pages 253-254. The results based on the findings of Blake and Mouton are consistent with those of the Ohio and Michigan studies. Managers were found to perform best under a 9,9 (team management style), as contrasted, for example, with a 9,1 (authority-obedience) or 1,9 (country club) style. However, there is little substantive evidence to support the conclusion that a 9,9 style is most effective in all situations. 5,5 4 Middle-of-the-road management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale 3 1,1 of people at a satisfactory level. 9,1 Impoverished management Authority-obedience Exertion of minimum effort Efficiency in operations results 2 to get required work done is from arranging conditions of appropriate to sustain work in such a way that human organization membership. elements interfere to a minimum degree. Low 1 1 2 3 4 5 6 7 8 9 Low High Concern for production

Contingency, or Situational Leadership Theories Stress the importance of considering the context when examining leadership Fiedler Contingency Model Hersey and Blanchard’s Situational Theory Path-Goal Theory Substitutes for Leadership Material pertinent to this discussion is found on pages 254-259. These theories acknowledge that predicting leadership success is more complex than isolating a few traits or preferable behaviours. Popular moderating variables used in the development of contingency theories include the degree of structure in the task being performed, the quality of leader-member relations, the leader’s position power, subordinates' role clarity, group norms, information availability, subordinate acceptance of leader's decisions, and subordinate maturity. The major theory covered under situational theories in the text is Path-Goal Theory.

Fiedler Contingency Model Effective group performance depends upon the proper match between the leader’s style and the degree to which the situation gives control to the leader Least preferred co-worker (LPC) questionnaire determined whether individuals were primarily interested in good personal relations with co-workers, and thus relationship oriented productivity, and thus task oriented Material pertinent to this illustration is found on page 254-255. Fiedler stated that the better the leader–member relations, the more highly structured the job, and the stronger the position power, the more control the leader has. He suggested that task-oriented leaders perform best in situations of high and low control, while relationship-oriented leaders perform best in moderate control situations.

Fiedler Contingency Model Fiedler’s contingency situations Leader member relations Degree of confidence, trust and respect members have for leader Task structure Degree to which jobs are structured Position power Degree to which leader has control over “power”: hiring, firing, discipline, promotions, salary Fiedler assumed that an individual’s leadership style is fixed. Material pertinent to this illustration is found on page 254-255.

Exhibit 8-4 Hersey-Blanchard’s Situational Leadership Styles Leader Behaviours (High) Participating Selling S3 S2 Delegating Telling Material pertinent to this illustration is found on page 255-256. S4 S1 (Low) Task behaviour (High) Follower Readiness R4 R3 R2 R1 Able and Unable and Unable and Able and unwilling/ Unable and Unable and unwilling/ unwilling/ willing willing willing apprehensive insecure insecure High Moderate Low

Hersey and Blanchard’s Situational Theory Follower: unable and unwilling Leader needs to give clear and specific directions (in other words, be highly directive) Follower: unable but willing Leader needs to display high task orientation to compensate for the follower’s lack of ability, and high relationship orientation to get the follower to "buy into" the leader's desires (in other words, “sell” the task) Material pertinent to this illustration is found on pages 255-256. Hersey and Blanchard’s Situational Leadership Theory (SLT) focuses on followers’ maturity is one of the most practised leadership models, maturity being the ability and willingness of people to take responsibility for directing their own behaviour. Using the leadership dimensions of task and relations, Hersey and Blanchard developed the four leadership behaviours of telling (high task, low relationship), selling (high task, high relationship), participating (low task, high relationship), and delegating (low task, low relationship). This theory is used frequently in corporate training. SLT essentially views the leader-follower relationship as analogous to that between a parent and child. Just as a parent needs to relinquish control as a child becomes more mature and responsible, so too should leaders.

Hersey and Blanchard’s Situational Theory Follower: able but unwilling Leader needs to use a supportive and participative style Follower: both able and willing Leader doesn't need to do much (in other words, a laissez-faire approach will work) Material pertinent to this discussion is found on pages 255-256.

Path-Goal Guidelines to Be Effective Leader Determine the outcomes subordinates want e.g., good pay, job security, interesting work, and autonomy to do one’s job, etc. Reward individuals with their desired outcomes when they perform well Be clear with expectations Let individuals know what they need to do to receive rewards (the path to the goal) Remove barriers that prevent high performance Express confidence that individuals have the ability to perform well Material pertinent to this discussion is found on pages 256-258. This theory was developed by Martin Evans and expanded upon by Robert House and combines elements of initiating structure and consideration with expectancy theory. A major idea is that a leader's behaviour is acceptable to subordinates insofar as they view it as a source of either immediate or future satisfaction. Research is generally supportive of this theory; that is, employee performance and satisfaction are likely to be positively influenced when the leader compensates for things lacking in either the employee or the work setting.  

Path-Goal Leadership Styles Directive Informs subordinates of expectations, gives guidance, shows how to do tasks Supportive Friendly and approachable, shows concern for status, well-being and needs of subordinates Material pertinent to this illustration is found on pages 256-258. Directive leadership: - leads to greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out; - is likely to be perceived as redundant among employees with high perceived ability or with considerable experience;(XXX: research dimension is high or low “perceived ability”, not a measure of actual high or low ability.) - leads to higher employee satisfaction when there is substantive conflict within a work group; - will lead to greater satisfaction when employees have an external locus of control. Supportive leadership: - results in high employee performance and satisfaction when employees are performing structured tasks; - is needed when there are clear and bureaucratic formal authority relationships. Participative leadership: - will lead to greater satisfaction when employees have an internal locus of control (they believe they control their own destiny). Achievement-oriented leadership: - is effective when tasks are ambiguously structured.

Path-Goal Leadership Styles Participative Consults with subordinates, solicits suggestions, takes suggestions into consideration Achievement oriented Sets challenging goals, expects subordinates to perform at highest level, continuously seeks improvement in performance, has confidence in highest motivations of employees Material pertinent to this discussion is found on pages 256-258.

Exhibit 8-5 Path-Goal Theory CONTINGENCY FACTORS Environmental • Task structure Formal authority system Work group Subordinate Locus of control Experience Perceived ability Leader Behaviour Directive Achievement-oriented Participative Supportive Outcomes Performance Satisfaction Material pertinent to this illustration is found on pages 256-258.

Exhibit 8-6 Substitutes and Neutralizers for Leadership Individual Experience/training Professionalism Indifference to rewards Job Highly structured task Provides its own feedback Intrinsically satisfying Organization Explicit formalized goals Rigid rules and procedures Cohesive work groups No effect on Substitutes for Neutralizes Defining Characteristics Relationship- Oriented Leadership Task- Material pertinent to this illustration is found on pages 258-259. Leadership may not always be important. Data from numerous studies collectively demonstrate that, in many situations, whatever behaviours leaders exhibit are irrelevant. Certain individual, job, and organizational variables can act as substitutes for leadership or neutralize the leader’s effect to influence his or her subordinates. Neutralizers make it impossible for leader behaviour to make any difference to subordinate outcomes. They negate the leader’s influence. Substitutes, on the other hand, make a leader’s influence not only impossible but also unnecessary. They act as a replacement for the leader’s influence.

Can You Be a Better Follower? All organizations have far more followers than leaders, so ineffective followers may be more of a handicap to an organization than ineffective leaders. What qualities do effective followers have? They manage themselves well They are committed to a purpose outside themselves They build their competence and focus their efforts for maximum impact They are courageous, honest, and credible Material pertinent to this discussion is found on pages 259-260. A great leader needs effective followers. The qualities of effective followers are: they manage themselves well, they are committed to a purpose outside themselves, they build their competence and focus their efforts for maximum impact, and they are courageous, honest, and credible. Note that these qualities are similar to ones needed to be a good leader.

Exhibit 8-8 Characteristics of Transactional Leaders Contingent Reward Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments. Management by Exception (active) Watches and searches for deviations from rules and standards, takes corrective action. Management by Exception (passive): Intervenes only if standards are not met. Laissez-Faire Leader: Abdicates responsibilities, avoids making decisions. Material pertinent to this illustration is found on pages 261-262.

Exhibit 8-8 Characteristics of Transformational Leaders Charisma Provides vision and sense of mission, instills pride, gains respect and trust. Inspiration Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways. Intellectual Stimulation Promotes intelligence, rationality, and careful problem-solving. Individualized Consideration Gives personal attention, treats each employee individually, coaches, advises. Material pertinent to this illustration is found on pages 261-262.

Personal Characteristics of the Charismatic Leaders Vision and articulation. Has a vision--expressed as an idealized goal--that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others. Personal risk. Willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve the vision. Material pertinent to this illustration is found on pages 262-263. Some examples of individuals frequently cited as being charismatic leaders include René Lévesque, Jean Charest, Lucien Bouchard, John F. Kennedy, Martin Luther King, Jr., Walt Disney, Steve Jobs (co-founder of Apple Computer), Mary Kay Ash (founder of Mary Kay Cosmetics), Lee Iacocca (former chairman of Chrysler), and Craig Kielburger (the Canadian teenager who founded Free the Children to promote children’s rights and combat exploitation of child labour)

Personal Characteristics of the Charismatic Leaders Environmental sensitivity. Able to make realistic assessments of the environmental constraints and resources needed to bring about change. Sensitivity to follower needs. Perceptive of others' abilities and responsive to their needs and feelings. Unconventional behaviour. Engages in behaviours that are perceived as novel and counter to norms. Material pertinent to this discussion is found on pages 262-263.

Research Evidence on Charismatic Leadership Superiority of transformational leadership is impressive Transformational military officers more effective than transactional officers Transformational FedEx managers were evaluated as higher performers and more promotable Transformational managers at financial services companies had higher business unit performance Material pertinent to this discussion is found on pages 263-264.

Dispersed Leadership SuperLeadership Team leadership Leading through empowerment Putting employees in charge of what they do Material pertinent to this discussion is found on pages 264-269.

SuperLeadership Leading others to lead themselves Develop leadership capacity in others Nurture employees so they feel less dependent on formal leadership Emphasize delegation Empower employees Empowerment: giving employees responsibility for what they do Material pertinent to this discussion is found on page 265. SuperLeadership viewed as the leadership design of the future. A major feature of SuperLeadership is the emphasis on “leading others to lead themselves.”

Providing Team Leadership Leading teams requires new skills E.g., patience to share information, trust others, give up authority, and knowing when to intervene Leading teams requires new roles Liaisons with external constituencies Troubleshooters Conflict managers Coaches Material pertinent to this discussion is found on pages 265-266. Leadership is increasingly taking place within a team context. As teams grow in popularity, the role of the leader in guiding team members takes on heightened importance. The role of team leader is different from the traditional leadership role performed by first-line supervisors.

Team Leaders Team leaders need to focus on two priorities Managing the team’s external boundary Facilitating the team process. Four specific roles Liaisons with external constituencies. Troubleshooters Conflict managers Coaches Material pertinent to this discussion is found on page 266.

Exhibit 8-9 Self-Leadership Practices Planning I plan out my day before beginning to work I try to schedule my work in advance I plan my career carefully I come to work early to plan my day I use lists and agendas to structure my workday I set specific job goals on a regular basis I set daily goals for myself I try to manage my time Access management I control the access subordinates have to me in order to get my work done I use a special place at work where I can work uninterrupted I hold my telephone calls when I need to get things done Material pertinent to this illustration is found on pages 267-268. Individuals are increasingly being called upon to self-manage. Those who practise self-management look for opportunities to be more effective in the workplace and improve their career success. Their behaviour is self-reinforced, that is, they provide their own sense of reward and feedback after carrying out their accomplishments. A 1999 study of 305 managers at a large retailing organization in the Midwestern United States identified four behaviours that can be considered self-management:: planning, access management, catch-up activities, and emotions management. Those who practise self-management look for opportunities to be more effective in the workplace and improve their career success.

Exhibit 8-9 Self-Leadership Practices Catch-up activities I come in early or stay late at work to prevent distractions from interfering with my work I take my work home with me to make sure it get done I come in on my days off to catch up on my work Emotions management I have learned to manage my aggressiveness with my subordinates My facial expression and conversational tone are important in dealing with subordinates It is important for me to maintain a “professional” manager-subordinate relationship I try to keep my emotions under control Material pertinent to this illustration is found on pages 267-268.

Benefits of Leading Without Authority Latitude for creative deviance Easier to raise questions Issue focus Freedom to focus on single issue, rather than many issues Frontline information Often closer to the people who have the information Material pertinent to this illustration is found on pages 267-269. Leading without authority simply means exhibiting leadership behaviour even though you do not have a formal position or title that might encourage others “to obey.” The benefits are: Latitude for creative deviance. Because one does not have authority, and the trappings that go with authority, it is easier to raise harder questions and look for less traditional solutions. Issue focus. Leading without authority means that one can focus on a single issue, rather than be concerned with the myriad issues that those in authority face. Frontline information. Leading without authority means that one is closer to the detailed experiences of some of the stakeholders. Thus more information is available to this kind of leader.

Contemporary Issues in Leadership Is there a Moral Dimension to Leadership? Gender: Do Males and Females Lead Differently? Cross-Cultural Leadership Material pertinent to this discussion is found on pages 269-272.

The Moral Foundation of Leadership Truth telling Telling the truth as you see it, because it allows for a mutual, fair exchange to occur. Promise keeping Leaders need to be careful of the commitments they make, and then careful of keeping those promises. Fairness This ensures that followers get their fair share for their contributions to the organization. Respect for the individual Telling the truth, keeping promises, and being fair all show respect for the individual. Respect means treating people with dignity. Material pertinent to this discussion is found on pages 269-270. There are a number of junctures of ethics and leadership. Questions arise about the use of power and charisma: is charisma used to enhance control over others for the personal gain of the leader, or for some social good? If a person is powerful, do they begin to marginalize others who are not so powerful? There are questions about integrity and honesty in leadership. Leadership is not values free. Leaders should be judged not only by the outcomes of their actions, but also by all the means they use to reach these outcomes.

Men’s and Women’s Leadership Styles In general, women fall back on a democratic leadership style Encourage participation Share power and information Attempt to enhance followers’ self-worth Prefer to lead through inclusion Men feel more comfortable with a directive command-and-control style Rely on formal authority Material pertinent to this discussion is found on pages 270-271. The similarities between men and women tend to outweigh the differences, but what differences there are seem to be that women fall back on a more democratic leadership style whereas men feel more comfortable with a directive style. Women encourage participation, share power and information, and attempt to enhance followers' self-worth. They prefer to lead through inclusion and rely on their charisma, expertise, contacts, and interpersonal skills to influence others. Men rely more on formal authority and utilize a more directive command and control style.

Cross-Cultural Leadership Leaders are constrained by the culture in which they live and by the expectations of their subordinates. For example, participation as a leadership style is likely to be more effective in counties with low power distance and some level of collectivism value. Remember, most of these leadership theories and empirical studies have been developed and conducted in North America. Material pertinent to this discussion is found on pages 271-272.

Summary and Implications Leadership plays a central part in understanding group behaviour The study of leadership has expanded to include more heroic and visionary approaches to leadership Male and female leadership styles tend to be more alike than different, although there are differences Leadership is not value free Material pertinent to this discussion is found on pages 272-273.

Summary and Implications Effective team leaders perform four roles: They act as liaisons They are troubleshooters They manage conflict They coach team members Empowered leadership is not the preferred leadership style of all occasions National culture is an important variable in choosing a leadership style Material pertinent to this discussion is found on pages 272-273.

OB at Work

For Review 1. Trace the development of leadership research. 2. Describe the strengths and weaknesses in the trait approach to leadership. 3. What is the Leadership Grid? 4. When might leaders be irrelevant? 5. What characteristics define an effective follower? 6. Describe the strengths and weaknesses of a charismatic leader. Material pertinent to this discussion is found on page 274.

For Review 7. What are the differences among transactional and transformational leaders? 8. What is dispersed leadership? What are some examples of dispersed leadership? 9. Why do you think effective female and male managers often exhibit similar traits and behaviours? 10. What is moral leadership? Material pertinent to this discussion is found on page 274.

For Critical Thinking 1. Develop an example where you apply path-goal theory. 2. Reconcile path-goal theory and substitutes for leadership. 3. What kind of activities could a full-time college or university student pursue that might lead to the perception that he or she is a charismatic leader? In pursuing those activities, what might the student do to enhance this perception of being charismatic? 4. Based on the low representation of women in upper management, to what extent do you think that organizations should actively promote women into the senior ranks of management? Material pertinent to this discussion is found on page 274.

Breakout Group Exercises Form small groups to discuss the following: 1. Identify an example of someone you thought was a good leader. What traits did they have? How did these traits differ from someone you identify as a bad leader? 2. Identify a situation when you were in a leadership position (in a group, in the workplace, within your family, etc.) To what extent were you able to use a contingency approach to leadership? What made that easier or more difficult for you? 3. When you’ve worked in student groups, how frequently have leaders emerged in the group? What difficulties occur when leaders are leading peers? Are there ways to overcome these difficulties? Material pertinent to this discussion is found on page 277.

Concepts to Skills: Practising to Be Charismatic Project a powerful, confident, and dynamic presence Articulate an overarching goal Communicate high-performance expectations and confidence in others’ ability to meet these expectations Be sensitive to the needs of followers Material pertinent to this discussion is found on page 281.