Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12 CHAPTERCHAPTERCHAPTERCHAPTER Leadership: Developing Applications DESCRIBE the Vroom-Jago leadership model. DISCUSS the attribution theory approach to leadership. DESCRIBE what constitutes charismatic leadership. COMPARE transactional and transformational leadership. IDENTIFY the major issues in multicultural leadership.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-3 Effective Leadership For Tomorrow’s Organizations Three Important Dimensions Processing Knowledge Finding and disseminating knowledge Building Trust Trust others as well as be trusted Using Power Sensitively Appropriately exercising power

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-4 Vroom-Jago Leadership Model Based on the Vroom-Yetton Model Normative model or set guidelines Situations determine appropriateness of degrees of participative decision-making No one single leadership style was appropriate Leader needs to be flexible to change styles to fit specific situations

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-5 Vroom-Jago Leadership Model: Critical Components Specification of the criteria by which decision effectiveness is judged A framework for describing specific leader behaviors or styles Key diagnostic variables that describe important aspects of the leadership situation

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-6 Vroom-Jago Leadership Model: Decision Effectiveness Decision Effectiveness Criteria Decision Quality The extent to which the decision impacts job performance Subordinate Commitment How important it is that subordinates be committed to or accept the decision Other - Time considerations

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-7 Vroom-Jago Leadership Model: Decision Styles Two Types of Decision Situations: Individual Group 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.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-8 SITUATIONAL DIAGNOSIS Vroom-Jago Leadership Model: Diagnostic Procedure Pose a series of questions about the situation: 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? Is the problem well structured? If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to the decision? Do subordinates share the organizational goals to be attained in solving this problem? Is conflict among subordinates over the preferred solutions likely? Do subordinates have sufficient information to make a high- quality decision?

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12-9 Vroom-Jago Leadership Model: Validity Issues Lacks complete empirical evidence establishing its validity. Thought to be consistent with what we know about the benefits of subordinate participation in decision making. Its value as a theoretical contribution and as a practical tool have yet to be fully developed. May falsely suggest that leaders always make decisions in a linear fashion. Fails to consider the impact of the time element.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Follower behavior Attribution Theory of Leadership Leaders are essentially information processors Leaders search for informational “cues” Leaders attempt to construct causal explanations to guide behavior Leader behavior Leader attributions Individuals are assumed to be rational and concerned about the causal linkages in their environments

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Attribution Theory of Leadership Causal Attribution of Poor Quality Internal causes Low effort Low commitment Lack of ability External causes Improper equipment Unfair deadlines Linkage #1 Information Cues Distinctiveness Consistency Consensus Observation of Poor Quality or Production Rejects Excess scrap Returned products Excessive production costs Linkage #2 Leader Behavior in Response to Attributions Reprimand Transfer Demotion Redesign job Personal concern Training Perceived Source of Responsibility

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leader Behavior: Cause or Effect Results of one recent field study suggests that: Leader consideration behavior causes subordinate satisfaction Follower performance causes changes in leader’s emphasis Further examination of “reciprocal causation” needed Reciprocal causation - leader behavior causes follower behavior and vice versa Overall, research on the cause-effect issues is still quite limited.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Charismatic Leadership A leader who creates an atmosphere of motivation based on an emotional commitment and identity to his or her vision, philosophy, and style on the part of followers. Visionary Charismatic Leaders Having the ability to see both the big picture and the opportunities the big picture presents. Crisis-Based Charismatic Leaders Having an impact when faced with situations lacking adequate knowledge, resources, or procedures TWO TYPES:

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin TRANSFORMATIONAL LEADERSHIP Transactional and Transformational Leadership 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 The 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) TRANSACTIONAL LEADERSHIP

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Transactional Leadership L = Leader F = Follower L: Clarifies how F’s need fulfillment will be exchanged for enacting role to attain designated outcomes F: Recognizes value of designated outcomes (need- fulfilling value for F) L: Recognizes what F needs F: Feels confidence in meeting role requirements L: Clarifies F’s role L: Recognizes what F must do to attain designated outcomes F: Develops motivation to attain desired outcomes

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Transformational Leadership Individual attention Charisma Intellectual stimulation Contingent reward Management by exception Five Descriptive Factors

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Coaching Everyday interaction of helping another employee improve his or her understanding of the work and improve performance. Tips on How to Coach and Lead Practice active listening. Support learning. Move from easy to hard skills. Set goals. Provide tactful feedback.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Multicultural Leadership Overall, in the global context, an inability exists to generalize the leadership needed to be effective. Cross-Cultural Research Suggests That: Leadership attributes associated with successful leadership results vary across cultures (e.g., Bass et al.) Leadership style in countries exhibiting one set of cultural dimensions culture may be counterproductive in those exhibiting other sets (e.g., Hofstede) Serious doubts exist regarding the generalizability or transferability of good leadership across national and cultural boundaries

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Multicultural Leadership Bass Proposed Seven Factors Linked to Cross-Cultural Leadership Effectiveness: Preferred awareness. Actual awareness. Submissiveness. Reliance on others. Favoring of group decision-making. Concern for human relations. Cooperative peer relations. Leader skills and abilities comprise only one variable in the leadership context.