1. Michael A. Hitt C. Chet Miller Adrienne Colella
Chapter 8 Leadership
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Slides by Ralph R. Braithwaite

2. Cathy Benko at Deloitte Consulting
What are your reactions to Cathy Benko’s story?
What are your thoughts about her quote at the end of the section?
“Life is not fair. Not everybody starts at the same place or has the same opportunities and support someone else might have. Don’t spend time wondering why you’re in the position you’re in. Just get out there and do as well as you can …”
Exploring Behavior in Action

3. The Strategic Importance of Leadership
Is there a link between leadership and organizational performance?
Do organizations do enough to develop leadership skills?
Strategic leadership involves developing a vision, empowering associates, building relationships, and building and maintaining a high-involvement, high-performance workforce.

4. Knowledge Objectives
Define leadership and distinguish between formal and informal leaders.
Explain the trait concept of leadership.
Describe major behavioral theories of leadership and compare and contrast them.
Explain contingency theories of leadership and how they relate leadership effectiveness to situational factors.
Describe transformational leaders.
Discuss topics of current relevance, including leader-member exchange, servant leadership, gender effects on leadership, and global differences in leadership.

5. The Nature of Leadership
The process of providing general direction and influencing individuals or groups to achieve goals.

6. Warren Bennis
Effective Leaders
Effective leaders are concerned with “doing the right things” rather than “doing things right.” The right things are:
Creating and communicating a vision of what the organization should be
Communicating with and gaining support of multiple constituencies
Persisting in the desired direction
Creating the appropriate culture and obtaining the desired results

7. Trait Theory of Leadership
Concept that certain traits help make people effective leaders. Early research suggested that the traits fell into three categories:
Physical Characteristics
Some Criticism
Personality Characteristics
Physical characteristics such as height and appearance
Personality characteristics such as self-esteem and dominance
Abilities such as intelligence and verbal fluency
Criticized because the methodology used to identify traits was poor, list of traits associated with leadership grew so large it became meaningless, the results of the research were inconsistent, and no leadership trait was found to relate consistently to unit or organizational performance and different situations seemed to require different traits.
Abilities

8. 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
Extroversion Tact
Initiative
Adapted from Exhibit 8-1: Common Traits Associated with Leadership

9. Six Core Traits of Leadership
Drive
Leadership Motivation
Integrity
Self- Confidence
Cognitive Ability
Knowledge of the Domain
Drive – Ambition, persistence, tenacity, initiative
Leadership motivation - Desire to lead, influence others, assume responsibility, and gain power; two types - socialized power motive, personalized power motive
Integrity – Truthfulness, honesty, 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
Cognitive ability - High degree of intelligence, process complex information, deal with changing environments
Knowledge of the domain - Knowledge of business in which they are engaged, make better decisions, anticipate future problems, understand implications of their actions

10. Reforming a “Rotten Apple”
What are your thoughts regarding the leadership traits of Police Commissioner William Bratton?
What are your thoughts regarding the changes he made that earned him the “Police Executive of the 20th Century” award and his face on the cover of Time?

11. Charismatic leaders inspire their followers to change their needs and values, follow visionary quests, and sacrifice their own personal interests for the good of the cause.
John F. Kennedy
Adolf Hitler
Winston Churchill
Eleanor Roosevelt
Charisma
Martin Luther King, Jr.
Ronald Reagan
Barbara Jordan

12. Behavioral Theories of Leadership
University of Michigan Studies
Ohio State University Studies

13. University of Michigan Studies
Rensis Likert
Daniel Katz
Robert Kahn
Job-Centered Leadership Style
Employee tasks
Methods for accomplishment
Employee-Centered Leadership Style
Employees’ personal needs
Development of interpersonal relationships
Job-centered leadership style – a behavioral leadership style that emphasizes employee tasks and the methods used to accomplish them
Employee-centered leadership style - a behavioral leadership style that emphasizes employees’ personal needs and development of interpersonal relationships

14. Ohio State University Studies
Edwin Fleishman
Ralph Stogdill
Consideration
Leaders express friendship
Develop mutual trust and respect
Strong interpersonal relationships with staff
Initiating Structure
Well defined patterns of organization and communication
Define procedures
Delineate relationships with staff
Emphasize goals and deadlines
Assign tasks and identify performance expectations
Consideration - a behavioral leadership style demonstrated by leaders who express friendship, develop mutual trust and respect, and have strong interpersonal relationships with those being led
Initiating structure - a behavioral leadership style demonstrated by leaders who establish well-defined patterns of organization and communication, define procedures, and delineate their relationships with those being led

15. Behavioral Theories of Leadership
Initiating Structure
Consideration
High
Low A
(Employee-Centered Style) C
(Job-Centered Style)
Adapted from Exhibit 8-2: Comparison of Consideration and Initiating Structure with Employee-Centered and Job-Centered Concepts

16. Contingency Theories of Leadership
Fiedler’s Theory
Path-Goal Theory

17. Fiedler’s Contingency Theory of Leadership
Fred Fiedler
Fiedler’s Contingency Theory of Leadership
Effectiveness depends on leader’s behavioral style and the situation
Leader style measured by the LPC (least preferred co-worker) scale
Situational favorableness assessed by three things:
Contingency theory – a theory of leadership that suggests the effectiveness of a leader depends on the interaction of his or her style of behavior with certain characteristics of the situation
Leader-member relations – the degree to which a leader is respected, is accepted as a leader, and had friendly interpersonal relations
Task structure – the degree to which tasks can be broken down into easily understood steps or parts
Position power – the degree to which a leader can reward, punish, promote, or demote individuals in the unit or organization
Leader-member relations
Task structure
Position power

18. ___:___:___:___:___:___:___:___
Fiedler’s LPC Scale
Esteem for Least Preferred Co-Worker
Cooperative
Uncooperative
___:___:___:___:___:___:___:___
Friendly
Unfriendly
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)

19. Situational Characteristics
Leader-Member Relations
The degree to which a leader is respected, accepted, and had friendly interpersonal relationships with followers
Task Structure
The degree to which tasks are broken down into easily understood steps or parts
Position Power
The degree to which a leader can reward, punish, promote, or demote individuals in the unit or organization

20. Fiedler’s Contingency Theory of Leadership Effectiveness
Adapted from Exhibit 8-3: Fiedler’s Contingency Model of Leadership Effectiveness

21. Path-Goal Leadership Theory
Leadership Style
Contingency Factors
Outcomes
Martin Evans
Robert House
Path-goal leadership theory – a theory of leadership based on expectancy concepts from the study of motivation, which suggests that leader effectiveness depends on the degree to which a leader enhances the performance expectancies and valences of his or her employees.

22. Leader Effectiveness
Leadership can effect employees’ expectancies and valences in several ways:
Assign tasks that have high value (valence)
Support employees’ efforts (effort → performance expectancy)
Tie rewards to goal accomplishment (performance→reward instrumentality)

23. Path-Goal Leadership Theory
Leader Behaviors
Situational Factors
Directive Leadership
Supportive Leadership
Achievement-Oriented Leadership
Participative Leadership
Subordinate Characteristics
Work Environment Characteristics
Effectiveness of leader behavior depends on these situational factors
Leader Behaviors:
Directive Leadership – Leadership behavior characterized by implementing guidelines, providing information on what is expected, setting definite performance standards, ensuring individuals follow rules
Supportive Leadership - Leadership behavior characterized by friendliness and concern for individuals’ well-being, welfare, and needs
Achievement-Oriented Leadership - Leadership behavior characterized by setting challenging goals and seeking to improve performance
Participative Leadership - Leadership behavior characterized by sharing information, consulting with those who are led, and emphasizing group decision-making
Situational Factors:
Subordinate Characteristics – Needs, Locus of control, Experience, Ability
Work Environment Characteristics - Task structure, Interpersonal relations in the group, Role conflict, Role clarity

24. Interaction of Leader Behavior and Situational Factors
Locus of Control
Need for Affiliation
Need for Security
Participative, Directive or Supportive Leaders
Need for Growth
Employee with Internal Locus of Control – Participative Leader
Employee with External Locus of Control – Directive Leader
Employee with High Need for Affiliation – Supportive Leader
Employee with High Need for Security – Directive Leader
Structured Task Work Environment – Supportive Leader
Unstructured Task Work Environment – Directive Leader
Employee with High Growth Need Strength – Complex Task Work Environment – Participative and Achievement Oriented Leader
Employee with Low Growth Need Strength – Complex Task Work Environment – Directive Leader
Employee with High Growth Need Strength – Simple Task Work Environment – Supportive Leader
Employee with Low Growth Need Strength – Simple Task Work Environment – Supportive Leader

25. Interaction of Leader Behavior and Situational Factors
Characteristics of the Work Environment
Subordinate Characteristics
Effective Leader Behaviors
Situational Factors
Internal locus of control
External locus of control
High need for affiliation
High need for security
High growth need
Strengths
Low growth need
Structured task
Unstructured task
Complex task
Simple task
Supportive
Directive
Participative/ Achievement oriented
Participative
Adapted from Exhibit 8-4: Interaction of Leader Behavior and Situational Factors

26. Phil Jackson and Leadership Success
Managerial Advice
Phil Jackson and Leadership Success
In terms of leadership, this means treating everyone with the same care and respect you give yourself – and trying to understand their reality without judgment. When we can do that, we begin to see that we all share human struggles, desires, and dreams.
Phil Jackson
What are your thoughts about this quote?
Have you ever worked for a leader who approached the job like this?
Does the leadership style one uses need to change based on each situation? Why?
When would a leader want to be “invisible”?

27. Transactional Leadership
A leadership approach that is based on the exchange relationship between followers and leaders. It is characterized by contingent behavior and active management-by-exception behavior.
It is the degree to which leaders provide what followers want in response to good performance.

28. Four Characteristics of Transactional Leaders
Understand what followers want to receive from their work, and attempt to give them what they desire, contingent on performance
Clarify links between performance and reward
Exchange rewards and promises of rewards for specified performance levels
Respond to the interests of followers only if the followers are performing satisfactorily

29. Transactional Leadership
Contingent Reward Behavior
Clarify performance expectations
Reward followers when expectations are met
Active Management-by-Exception Behavior
Clarifies minimal performance standards
Punishes when standards are not met
Consistently Monitors Performance

30. Transformational Leadership
A leadership approach that involves motivating followers to do more than expected, to continuously develop and grow, to increase self-confidence, and to place the interests of the unit or organization before their own.
Involves charisma, intellectual stimulation, and individual consideration.

31. Transformational Leaders Do Three Things
Increase followers awareness of the importance of pursuing a vision or mission and the strategy required
Encourage followers to place the interests of the unit, organization, or larger collective before their own personal interests
Raise followers’ aspirations so they continuously try to develop and improve themselves while striving for higher levels of accomplishment

32. Intellectual Stimulation Individual Consideration
Characteristics
Charisma
Intellectual Stimulation
Individual Consideration

33. Charismatic Leaders Charisma Inspire emotion and passion in followers
Get followers to identify with the leader
Display confidence
Communicate and live up to organizational values
Optimistic and enthusiastic
Charisma

34. Intellectual Stimulation
Increase the followers’ focus on problems and develop new ways to solve them
Reexamine assumptions
Seek out different views
Work to be innovative

35. Individual Consideration
Support and develop followers to improve self-confidence and a desire to improve performance
Provide individualized attention to followers
Focus on followers’ strengths
Act as teachers and coaches
Individual Consideration

36. Common Behaviors Articulate clear, appealing vision
Communicate the vision
Delegate significant authority and responsibility
Eliminate unnecessary bureaucratic restraints
Provide coaching, training and developmental experiences
Encourage open sharing of ideas and concerns
Encourage participative decision making
Promote cooperation and teamwork
Modify structure to promote key values and objectives

37. Laissez-Faire Leadership
Opposite approach to transformational leadership
Not proactive
React only to failures or chronic problems
Avoid making decisions
Often absent or uninvolved in followers’ activities
Typically do not have positive outcomes

38. Commander Abrashoff Demonstrated confidence Focused on the vision
D. Michael Abrashoff
Demonstrated confidence
Focused on the vision
Linked tasks to the vision
Went beyond self-interest
Created intellectual stimulation
Displayed individual consideration
Would you want to work for someone like Abrashoff? Why or why not?
Would his approach work in most work environments? Why or why not?
USS Benfold

39. Some Conclusions
Leaders can be trained to exhibit transformational leadership behaviors
Leaders can display both transformational and transactional leadership styles
Both transformational and transactional leadership can be positive

40. The Effects Transformational Leadership Outcomes
Charisma
Intellectual Stimulation
Individual Consideration
Outcomes
Individual Outcomes
Unit/Organization Outcomes
Transactional Leadership
Contingent Reward Behavior
Active Management by Exception
Dynamism of the task/organizational environment
Adapted from Exhibit 8-5: The Effects of Transformational and Transactional Leadership

41. Ethical Leadership? Authentic Leadership!
Thoughts?
Dennis Kozlowski
Experiencing Strategic OB

42. Ethical Leadership? Authentic Leadership!
Ken Lay
Jeff Skilling
Andrew Fastow
Thoughts?
Experiencing Strategic OB

43. Ethical Leadership? Authentic Leadership!
Martha Stewart
Samuel Waksal
Ryan Brant
Thoughts?
Thoughts?
Experiencing Strategic OB

44. Experiencing Strategic OB
Thoughts?
Authentic Leaders
Guided by values that focus on doing what’s right for their constituencies
Try to act in accordance with their values
Remain transparent
“Walk the talk”
Place equal weight on getting the task accomplished and developing associates
Continuously develop themselves
Have developed values and personal strengths they need to deal with ambiguous ethical issues
Experiencing Strategic OB

45. Leader-Member Exchange (LMX)
Different relationships with different followers – not all are treated the same
High level of contribution is a factor
Similarity to the leader is a factor
Two groups - an In-group and an Out-group
Mutual trust and support
Levels of satisfaction
Leader-member exchange – a model of leadership focused on leaders developing more positive relationships with some individuals, and having more positive exchanges with these individuals

46. Leader-Member Exchange (LMX)
In Group
Leader
Exchange
Follower
Leader-member exchange – a model of leadership focused on leaders developing more positive relationships with some individuals, and having more positive exchanges with these individuals
The in-group consists of a small number of trusted followers with whom the leader usually establishes a special higher quality exchange relationship.
The out-group includes the followers with whom the relationship of the leader remains more formal.
Out Group

47. Former CEO of Herman Miller
Servant Leadership
Valuing individuals
Developing people
Building community
Conceptualizing
Exhibiting foresight
Displaying wisdom
Desire to serve others
Max De Pree
Former CEO of Herman Miller

48. Gender Effects on Leadership
Do women lead differently than men?
Structural-cultural model of leader behavior
Socialization model
Structural-cultural model of leader behavior – A model holding that because women often experience lack of power, lack of respect, and certain stereotypical expectations, they develop leadership styles different from those of men
Socialization model – A model proposing that all leaders in a particular organization will display similar leadership styles because 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

49. Global Differences 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
Anglo cluster – Australia, Canada, England, Ireland, New Zealand, South Africa (white sample), and the United States
Arabic cluster – Egypt, Morocco, Kuwait, Qatar, and Turkey
Expected not to differentiate themselves from others and have modest styles and
Expected to have great deal of power and control, and to direct most decisions and actions

50. Global Differences 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
Germanic cluster – Austria, Germany, the Netherlands, and Switzerland
South Asia cluster – India, Indonesia, Iran, Malaysia, Philippines, and Thailand

51. The Strategic Lens
How should leaders approach individuals, units, and organizations suffering from poor performance?
Why is ethical leadership often of utmost importance to various shareholders?
Should women and men lead in different ways?

52. Questions