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Leaders and LeadershipUnderstanding and Managing Organizational Behavior Chapter 12 Sixth Edition Jennifer M. George & Gareth R. Jones Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallLearning Objectives Describe what leadership is, when leaders are effective and ineffective, and the difference between formal and informal leaders Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavior models of leadership Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallLearning Objectives Explain contingency models of leadership and differentiate between four different contingency approaches Describe why leadership is not always a vital process in some work situations because substitutes for leadership exist Discuss transformational leadership and how it is achieved, explain how a leader’s mood affects followers, and appreciate how gender may affect leadership style Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
How Sony’s CEO Changed Its Leadership ApproachHow can a new leader help improve performance? Fresh look at company problems Replace leaders that are uncooperative To turnaround Sony’s declining performance, CEO Sir Howard Stringer adopted a directive approach. Stringer’s was known to be a directive but participative leader; although he was closely involved in all U.S. top management decisions, he nevertheless then gave his top executives the authority to develop successful strategies to implement these decisions. When he became Sony’s CEO in 2005, Stringer faced the immediate problem of reducing operating costs that were double those of its competitors because the leaders of its division’s had essentially seized control of Sony’s top level decision-making authority. Stringer immediately recognized how the extensive power struggles among the leaders of Sony’s different product divisions were hurting the company. So, adopting a directive, command and control leadership approach, he made it clear that this had to stop and that they needed to work quickly to reduce costs—but he also urged them to cooperate to speed product development across divisions. Stringer replaced all the divisional leaders who resisted his orders, and he worked steadily to downsize Sony’s bloated corporate headquarters staff and replace the leaders of functions who also put their own interests first. He promoted younger managers to lead its divisions and functions—managers who would obey his orders and focus on the company’s performance because as Stringer said over time the culture or business of Sony had been management—not making new products. Sony’s 2010 financial results suggest that Stringer’s initiatives are paying off. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallWhat Is Leadership? Leadership is the exercise of influence by one member of a group or organization over other members to help the group or organization achieve its goals The two key parts of leadership are exerting influence, and helping to achieve goals. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallLeadership Leaders are individuals who exert influence to help meet group goals Formal Informal Leader effectiveness is the extent to which a leader actually does help Formal leaders are those managers who are given the authority to influence other members in the organization to achieve its goals. Informal leaders have no formal job authority but can exert just as much influence in an organization as formal leaders. The ability of informal leaders to influence others may stem from special skills or talents they possess—skills the organization’s members realize will help it achieve its goals. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Early Approaches to LeadershipLeader Trait Approach Behavior Approach Fiedler’s Contingency Model Each theory of leadership complements the others. There is no one right or only way to become an effective leader. These theories are discussed on the following slides. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The Leader Trait ApproachEnergy/activity levels Tolerance for stress Integrity and honesty Emotional maturity Intelligence Task-relevant knowledge Dominance Self-confidence The Leader Trait approach sought to identify enduring personality traits that distinguish leaders from followers and effective leaders from ineffective ones. This is the list of relevant traits. Intelligence helps a leader solve complex problems. Task-relevant knowledge ensures that leader knows what has to be done, how it should be done, what resources are required, and so on, for a group and organization to achieve its goals. Dominance is an individual’s need to exert influence and control over others, helps a leader channel followers’ efforts and abilities toward achieving group and organizational goals. Self-confidence helps a leader influence followers and persist in the face of obstacles or difficulties. Energy/activity levels, when high, help a leader deal with the many demands he or she faces on a day-to-day basis. Tolerance for stress helps a leader deal with the uncertainty inherent in any leadership role. Integrity and honesty ensure that a leader behaves ethically and is worthy of followers’ trust and confidence. Emotional maturity ensures that a leader is not overly self-centered, can control his or her feelings, and can accept criticism. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The Leader Behavior ApproachConsideration Initiating Structure Later, researchers focused on what leaders actually do. Researchers at Ohio State University in the 1940s and 1950s realized that leaders influence followers through concrete behaviors. After analyzing responses to surveys measuring 1800 concrete behaviors, the researchers found that most leader behaviors involved either consideration or initiating structure. Initiating structure refers to behavior that a leader engages in to make sure that work gets done and subordinates perform their jobs acceptably. It is also known as job-oriented behavior. Consideration is behavior indicating that a leader trusts, respects, and values good relationships with his or her followers. It is also known as employee-centered behavior. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallThe Behavior Approach Leader Reward Behavior Leader Punishing Behavior In addition to engaging in consideration and initiating structure, leaders behave in other ways that have important effects on their followers. Leaders also administer reinforcements (rewards) and punishments. Leader reward behavior occurs when a leader positively reinforces subordinates’ desirable behavior. Leader punishing behavior occurs when a leader reprimands or otherwise responds negatively to subordinates who perform undesired behavior. It is generally more effective to use reinforcement to encourage desired behavior than to use punishment to stop undesired behavior. Punishment can have unintended side effects such as resentment. Leadership behaviors can be measured with the Leadership Behavior Description Questionnaire or the Leadership Opinion Questionnaire. Exhibit 12.1 provides some of the questions. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The Role of Traits and BehaviorsExhibit 12.2 Exhibit 12.2 indicates that trait and behavior approaches contribute to our understanding of effective leadership by indicating what effective leaders tend to be like and what they do. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Fiedler’s Contingency Theory of LeadershipLeadership effectiveness determined by The characteristic of individuals The situations in which they find themselves Distinct leader styles Relationship oriented Task oriented Fred Fiedler’s theory is one of the most popular approaches to understanding leadership. It helps to explain why some leaders will be more effective than other leaders with equally good credentials in particular situations and why a particular leader may be effective in one situation but not in another. Fiedler’s theory acknowledges that personal characteristics influence the effectiveness of leaders. He identified two distinct leader styles—relationship-oriented and task-oriented. He proposed that all leaders are characterized by one style or the other. Relationship-oriented leaders want to be liked by and get along well with their subordinates. Task-oriented leaders want their subordinates to perform at a high level and accomplish all of their assigned tasks. According to Fiedler, a leader’s style is an enduring personality characteristic. A relationship-oriented leader cannot be trained to be task-oriented and vice versa. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Measuring Leader StyleLeast preferred co-employee scale High LPC leaders = relationship-oriented Low LPC leaders = task-oriented Fiedler devised and used a unique scale to measure leader style: the least preferred co-employee scale. He asked leaders to think about their least preferred coworker or the co-employee with whom they have the most difficulty working. The leader was then asked to rate the LPC on a number of dimensions such as the extent to which the LPC was friendly, enthusiastic, and pleasant. Relationship-oriented leaders described their LPC in relatively positive terms. They were able to say some good things about the co-employee with whom they had the most difficulty working. In contrast, task-oriented leaders described their LPC negatively. They believed their LPC had few redeeming qualities. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Situational CharacteristicsLeader-member relations Task structure Position power Fiedler proposed that situations vary in their favorability for leading. When a situation is favorable for leading, it is easier for a leader. Three characteristics determine how favorable situations are for leading. Leader-member relations refers to the relationship between the leader and his or her followers. If the relationship is good (full of trust and loyalty) then the situation is favorable. Task structure is the extent to which the work to be performed by a group is clearly defined. When a group has specific goals that need to be accomplished and every group member knows how to go about achieving the goals, task structure is high. When group goals are vague, members are not sure how to go about performing their jobs. When task structure is high, the situation is more favorable for leading. Position power is the amount of formal authority that a leader has. If a leader has the power to reward and punish subordinates then position power is high. A situation is more favorable when position power is high. All possible combinations of these three variables results in eight leadership situations. These are depicted on the next slide. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Favorability of Situations for LeadingExhibit 12.3 Octants I, II, and III are very favorable for leading. Octants IV, V, VI, and VII are moderately favorable. Octant VIII is very unfavorable. Task-oriented leaders are most effective in situations that are very favorable or very unfavorable. Relationship-oriented leaders are most effective in moderately favorable situations. Fiedler advocates assigning the leader to situations in which they will be effective. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Fiedler’s Contingency TheoryExhibit 12.4 Task oriented: Wants high performance and accomplishment of all tasks Getting job done is first priority Relationship oriented: Wants to be liked by and to get along well with subordinates Getting job done is second priority Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Contemporary PerspectivesPath-goal theory Vroom and Yetton model Leader-member exchange theory Several newer theories have been proposed. They are based on a contingency model that takes into account both the characteristics of leaders and the situation in which they try to lead. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallPath-Goal Theory Path-goal theory describes how leaders can motivate their followers to achieve group and organizational goals and the kinds of behaviors leaders can engage in to motivate followers Path-goal theory was developed by Robert House. It suggests that effective leaders follow three guidelines to motivate their followers. The guidelines are based on the expectancy theory of motivation and are listed on the next slide. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Guidelines for Path-Goal TheoryDetermine what outcomes subordinates are trying to obtain in the workplace Reward subordinates for performing at a high level or achieving their work goals by giving them desired outcomes Make sure subordinates believe that they can obtain their work goals and perform at a high level The first guideline relates to valence in expectancy theory. The second relates to instrumentality and the final guideline relates to expectancy. House also identified four types of behaviors that leaders can engage in to motivate subordinates. They are listed on the next slide. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallPath-Goal Theory Exhibit 12.5 Effective leaders: Motivate followers to achieve goals Ensure they have control over outcomes their subordinates desire Reward subordinates for performing at a high level Raise subordinate beliefs about ability to achieve Consider subordinate characteristics and type of work Path-goal theory enhances our understanding of effective leadership in organizations by specifying how leaders should motivate their followers. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Path-Goal Theory: Types of BehaviorsDirective Supportive Participative Achievement Oriented Directive behavior is similar to initiating structure. It lets subordinates know what tasks need to be performed and how they should be performed. Supportive behavior is similar to consideration. It lets subordinates know that their leader cares about their well-being and is looking out for them. Participative behavior enables subordinates to be involved in making decisions that affect them. Achievement-oriented behavior pushes subordinates to do their best. It includes setting difficult goals for followers, expecting high performance, and expressing confidence in their capabilities. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallOB Today: A Sister Act What’s the sisters’ approach to leadership? Claire’s stores Emphasis on delegation Participative leadership The sisters’ first task was to decide how they would run the company together. When two people are at the helm, this frequently leads to conflict between them as they battle for control over decision making and power. The sisters were determined to avoid this leadership error and provide a united front to their subordinates, one based on a clear emphasis of the need to set goals and then work toward achieving them. They decided to take control over different areas of decision making. Bonnie would be in charge of real estate and store operations and Marla would oversee product merchandizing and sales. Both women believe in delegating authority to the managers below them and have a participative approach to leadership. In the retail business this is vital because it allows merchandisers to work closely with store managers to decide on right selection of products to offer customers. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallVroom and Yetton Model Autocratic Consultative Group Delegated One of the most important things that leaders do in organizations is make decisions. The Vroom and Yetton Model was developed in the 1970s by Victor Vroom and Philip Yetton to describe the different ways in which leaders can make decisions. The model offers guidelines regarding the extent to which subordinates should participate in decision making. An autocratic decision-making style means that the leader makes the decision without input from subordinates. A consultative decision-making style means that subordinates have some input but the leader makes the decision. A group style means that the group makes the decision and the leader is just another group member. The delegated style means the leader gives exclusive responsibility to subordinates. The model suggests that leaders should choose among these alternatives on the basis of the nature of the situation and the subordinates involved. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Criteria for Decision-Making StyleNature of the tasks Level of task interdependence Output being produced Characteristics of the employees The Vroom and Yetton model instructs leaders to choose among these alternative decision-making styles on the basis of their answers to a series of questions about the nature of the situation and the subordinates involved. The following criteria must be considered: The nature of the tasks being performed by employees, the level of task interdependence, the output being produced, and the characteristics of the employees involved, such as their skill level. As such, the model adopts the same kind of contingency approach as Fiedler and House’s, but it focuses on choosing the right leader decision-making style. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Leader-Member Exchange TheoryExhibit 12.6 Leader-member exchange theory describes the different kinds of relationships that may develop between a leader and a follower and describes what the leader and the follower bring to and get back from the relationship. The theory focuses on the leader-follower dyad—the relationship between the leader and the follower. The theory proposes that each dyad develops a unique relationship that stems from unfolding interactions between the leader and the follower. Although each relationship is unique, the theory suggests that two general kinds of relationships develop in leader-follower dyads. In some dyads, the leader develops a special relationship with the subordinate, characterized by mutual trust, commitment, and involvement. In these dyads, there is mutual influence and support. The subordinates in these relationships are said to be in the in-group. Other subordinates develop a more traditional relationship with their leader. The leader relies on his or her formal authority and position in the organization to influence the subordinate and the subordinate is expected to perform his or her job in an acceptable manner and to follow rules and the directives of the leader. These dyads are characterized as impersonal, distant, and cold. The subordinates are said to be in the out-group. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Leadership Substitutes and NeutralizersCharacteristics of the subordinate Characteristics of the work Characteristics of the group Characteristics of the organization A leadership substitute is something that acts in place of a formal leader and makes leadership unnecessary. All of the characteristics listed in the slide have the potential to act as substitutes for leadership. A leadership neutralizer is something that prevents a leader from having any influence and negates the leader’s efforts. When neutralizers are present, there is a leadership void. The leader has no effect and there is nothing to take the leader’s place. The characteristics in the slide can also serve as neutralizers. Substitutes can be functional because they free up the leader’s time for other activities. However, neutralizers are dysfunctional because a leader’s influence is lacking. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallNew Topics Transformational and charismatic leadership Transactional leadership Leader mood Gender and leadership Transformational leadership occurs when a leader transforms, or changes, his or her followers in three important ways that together result in followers’ trusting the leader, performing behaviors that contribute to the achievement of organizational goals, and being motivated to perform at high levels. It is described further on the remaining slides. Transactional leadership occurs when a leader motivates followers purely by exchanging rewards for good performance and noticing and reprimanding subordinates for mistakes and substandard performance Leader mood suggests that mood affects a leader’s effectiveness. In addition to mood, a leader’s level of emotional intelligence may also contribute to leader effectiveness. A common stereotype in organization is that women are relationship-oriented whereas men are task-oriented. Consequently, one might expect gender to have an effect on leadership. Some research suggests that there are no differences in leader style based on gender. Other research found that women tend to be more democratic whereas men were more autocratic. Some research suggests that women may have better leadership skills than men. Women receive higher scores on communication and listening, work quality, and motivational skills. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Transformational LeadershipExhibit 12.7 This Exhibit shows the characteristics of a transformational leader and how followers respond to that leadership style. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Characteristics of Transformational LeadershipCharisma Transformational Leader Developmental Consideration These three characteristics are key to transformational leadership. Charismatic leaders communicate a vision to their followers. They share their excitement and enthusiasm with the followers to induce the followers to support the vision. Charismatic leaders tend to have high levels of self-confidence and self-esteem. Transformational leaders also influence followers by intellectually stimulating them to become aware of problems in their groups and organization and to view these problems from a new perspective that is consistent with the leader’s vision. Transformational leaders also influence their followers through developmental consideration. Developmental consideration includes not only the consideration behavior discussed earlier but also behavior that supports and encourages followers and gives them opportunities to develop and grow on the job by acquiring new skills and capabilities. Intellectual Stimulation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallThis work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the WorldWideWeb) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © Pearson Education, Inc. Publishing as Prentice Hall
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