Michael A. Hitt C. Chet Miller Adrienne Colella Slides by R. Dennis Middlemist Chapter 8 Leadership

Knowledge Objectives 1.Define leadership and distinguish between formal and informal leaders. 2.Explain the trait concept of leadership. 3.Describe major behavioral theories of leadership and their similarities and differences. 4.Understand contingency theories of leadership and how they relate leadership effectiveness to situational factors.

Knowledge Objectives 5.Describe the differences between transactional and transformational leaders. 6.Discuss what factors can act as substitutes for leadership and why. 7.Compare how men and women lead and discuss possible reasons for any similarities or differences between their leadership styles. 8.Explain the similarities and differences in effective leadership styles across various clusters of countries.

The Nature of Leadership The process of providing direction and influencing individuals or groups to achieve goals Effective leaders are concerned with doing the “right things” – Create and communicate a vision of what the organization should be – Communicate with and gain the support of multiple constituencies – Persist in the desired direction even under bad conditions – Create the appropriate culture and to obtain the desired results

Trait Theories of Leadership Exhibit 8-1Common Traits Associated with Leadership Energy Insightfulness Appearance Integrity Intelligence Persistence Judgment Self-confidence Verbal fluency Sense of humor Achievement drive Tolerance for stress Adaptability Interpersonal skills Aggressiveness Prestige Enthusiasm Socioeconomic position Extroversion Tact Initiative Adapted from Exhibit 8-1: Common Traits Associated with Leadership

Six Core Traits of Leadership Drive – Ambition – Achievement motivation – Persistence – Tenacity – Initiative Leadership motivation – Desire to lead, influence others, assume responsibility, and gain power Socialized power motive Personalized power motive

Six Core Traits of Leadership Honesty and integrity – Truthful – Maintain consistency between what they say and what they do Self-confidence – Confident in their actions and show that confidence to others – Learn from their mistakes – React positively to stress – Even-tempered – Display appropriate emotions

Six Core Traits of Leadership Cognitive ability – High degree of intelligence Process complex information Deal with changing environments Knowledge of business – Knowledge of business in which they are engaged Make better decisions Anticipate future problems Understand implications of their actions

Behavioral Theories of Leadership University of Michigan studies – Job-centered leadership style A leadership behavioral style that emphasizes employee tasks and the methods used to accomplish them – Employee-centered leadership style A leadership behavioral style that emphasizes employees’ personal needs and the development of interpersonal relationships

Behavioral Theories of Leadership Ohio State University studies – Consideration A leadership behavioral style demonstrated by leaders who express friendship, develop mutual trust and respect, and have strong interpersonal relationships with subordinates – Initiating structure A leadership behavioral style demonstrated by leaders who establish well-defined interpersonal relationships with patterns of organization and communication, define procedures, and delineate their relationships with subordinates

Comparison of Michigan and Ohio State Studies AD CB Initiating Structure Consideration High Low HighLow Adapted from Exhibit 8-2: Comparison of Employee-Centered and Job-Centered Concepts with Consideration and Initiating Structure Job-Centered Style Employee-Centered Style

Behavioral Theories of Leadership The Managerial Grid – Concern for people One of the two dimensions of leadership behavior of the managerial grid; similar to the behavioral styles of consideration and employee-centered leadership – Concern for production One of the two dimensions of leadership behavior of the managerial grid; similar to the behavioral styles of initiating structure and job-centered leadership

The Managerial Grid Adapted from Exhibit 8-3: Blake and Mouton’s Managerial Grid Concern for People High Concern Low Concern Concern for Production Low ConcernHigh Concern 4,3 style 8, 7 style 2, 6 style The “best” leadership style 9,9 style Grid Training helps leaders move to a style high in both Concern for people Concern for production

Contingency Theories of Leadership Fiedler’s contingency theory of leadership effectiveness – Leader effectiveness depends on the interaction of Leader’s behavioral style Favorableness of the leadership situation – Leader style measured by the LPC (least preferred coworker) scale – Situational favorableness assessed by three factors

Fiedler’s Contingency Theory of Leadership Effectiveness Leader style – Esteem for the Least Preferred Co-worker (Bipolar adjectives scale) CooperativeUncooperative ___:___:___:___:___:___:___:___ FriendlyUnfriendly ___:___:___:___:___:___:___:___ – Low LPC score Negative adjectives Task-oriented leader (task achievement needs first) – High LPC score More positive adjectives Relationship-oriented leader (interpersonal relationship needs first)

Fiedler’s Contingency Theory of Leadership Effectiveness Situation favorableness measured by three situational characteristics – Leader-member relations Amount of respect subordinates have for the leader – Task structure Degree to which tasks are simplified and easy for followers to understand – Position power Degree to which the leader can reward, punish, promote or demote employees in the group

Fiedler’s Contingency Theory of Leadership Effectiveness Adapted from Exhibit 8-4: Fiedler’s Contingency Model of Leadership Effectiveness

Path-Goal Leadership Theory Leader effectiveness depends on the degree to which a leader can enhance the performance expectancies and valences of her subordinates by: – Assigning individuals to tasks for which they have high valences (valence) – Supporting employees’ efforts to achieve task goals (effort → performance expectancy) Encouragement Training Technical support – Tying extrinsic rewards (pay raise, recognition, promotion) to accomplishment of task goals (performance→reward instrumentality)

Path-Goal Leadership Theory Leader behaviors – Directive leadership – Supportive leadership – Achievement-oriented leadership – Participative leadership – Upward-influencing leadership\ Situational factors – Subordinates’ characteristics – Characteristics of the work environment

Leader Behavior and Situations Adapted from Exhibit 8-5: Interaction of Leader Behavior and Situational Factors Situational Factors Subordinate Characteristics Characteristics of the Work Environment Effective Leader Behaviors High need for affiliation Structured task Supportive High need for security Internal locus of control External locus of control High growth need strength Unstructured task Complex taskParticipative/ Achievement oriented Supportive Directive Participative Directive

Leader Behavior and Situations Adapted from Exhibit 8-5: Interaction of Leader Behavior and Situational Factors Situational Factors Subordinate Characteristics Characteristics of the Work Environment Effective Leader Behaviors Low growth need strengthDirectiveComplex task High growth need strengthSupportiveSimple task Low growth need strengthSupportiveSimple task Low willingness to leave, less anxiety, and high satisfaction Upward influencing and contingent High role clarity and low role conflict

Transactional Leadership Transactional leaders – Display active management-by-exception behavior – Display contingent reward behavior 1. Understand what followers want to receive from their work, and attempt to give them what they desire, contingent on performance 2. Clarify links between performance and reward 3. Exchange rewards and promises of rewards for specified performance levels 4. Respond to the interests of followers only if the followers are performing satisfactorily

Transformational Leadership Transformational leaders – Motivate followers to Do more than expected (organizational vision and outcomes) Continuously develop and grow Increase their level of self-confidence Place the interests of the team or organization before their own – Display charisma – Intellectually stimulate their subordinates – Provide individual consideration of subordinates

Leader Behaviors Articulate clear and appealing vision Communicate the vision Delegate significant authority and responsibility Eliminate unnecessary bureaucratic restraints Promote cooperation and teamwork Encourage open sharing of ideas and concerns Encourage participative decision making Provide coaching, training and other developmental experiences Modify structure to promote key values and objectives Transformational Leadership Transformational Leader Individual consideration Intellectual stimulation Charisma

High in competitiveness High in need for independence Professional orientation Routineness Feedback Intrinsic satisfaction Highly formalized – Rules – Norms – Policies Group cohesion Substitutes for Leadership Task Characteristics Characteristics of Associates Organizational Characteristics

Gender Effects on Leadership Do women lead differently than men? – Structural-cultural model of leader behavior Often experience lack of power, lack of respect, and stereotypic expectations Thus will develop leadership styles different from those of men – Socialization model All have been selected and socialized by the same organization Thus, men and women will display similar leadership styles – Both women and men may be effective leaders when style matches the situation

Global Differences in Leadership Anglo cluster (ideal leader) – Charismatic influence and inspiration, encouraging participation – Diplomatic, delegating authority, allowing everyone to have their say Arabic cluster (ideal leader) – Need to balance paradoxical set of expectations Expected not to differentiate themselves from others and have modest styles Expected to have great deal of power and control, and to direct most decisions and actions

Global Differences in Leadership Germanic cluster (ideal leader) – Charismatic – Highly team-oriented – Participative Southern Asia cluster (ideal leader) – Humane, participative, and charismatic – Expected to be benevolent while maintaining a strong position of authority