17 Chapter What Does Leadership Involve n Trait

17 Chapter What Does Leadership Involve? n Trait Behavioral Theories of Leadership n Situational Theories n From Transactional to Charismatic Leadership n Additional Perspectives on Leadership

17 -2 Leadership n Leadership influencing employees to voluntarily pursue organizational goals Mc. Graw-Hill © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -3 Table 17 -1 Leaders Vs. Managers Leaders n n n n Innovate Develop Inspire Long-term view Ask what and why Originate Challenge the status quo Do the right thing Mc. Graw-Hill Managers n n n n Administer Maintain Control Short-term view Ask how and when Initiate Accept the status quo Do things right © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -4 Historic Vs. Contemporary Trait Theories of Leadership Stogdill’s and Mann’s Findings n n n Intelligence Dominance Self-confidence Level of energy and activity Task-relevant knowledge Contemporary Trait Research n n n Mc. Graw-Hill people tend to perceive that someone is a leader when he or she exhibits traits associated with intelligence, masculinity, and dominance people want their leaders to be credible leaders are honest, forward-looking, inspiring, and competent © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Behavioral Theories n Ohio State studies n Initiating structure n Consideration n Michigan State studies n Job-centered n Employee-centered

Consideration Four Leadership Styles Derived from the Ohio State Studies High Low Structure, High Consideration High Structure, High Consideration Low Structure, Low Consideration High Structure, Low Consideration Low 17 -8 Figure 17 -2 High Initiating Structure Mc. Graw-Hill © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Contingency Theories n Also known as Situational Theories n The effectiveness of a style of leader behavior depends on the situation

17 -10 Figure 17 -4 Representation of Fiedler’s Contingency Model Situational Control High Control Situations Moderate Control Situations Low Control Situations Leader-member relations Good Poor Task Structure High Low Low Position Power Strong Weak Situation I II IV V VI VIII Optimal Leadership Styles Mc. Graw-Hill Task-motivated Leadership Relationship. Motivated Leadership Task. Motivated Leadership © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -11 Figure 17 -5 House’s Revised Path-Goal Theory Employee Characteristics Leader Behaviors § Path-goal clarifying § Achievement oriented § Work facilitation § Supportive § Interaction facilitation § Group orienteddecision making § Representation and networking § Value based Mc. Graw-Hill § Locus of control § Task ability § Need for achievement § Experience § Need for clarity Leadership Effectiveness Environmental Factors § Task structure § Work group dynamics § Employee motivation § Employee satisfaction § Employee performance § Leader acceptance § Work-unit performance © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Hersey and Blanchard’s Situational Leadership Theory n Appropriate leadership style is determined by follower readiness n Follower readiness is determined by followers’ ability and willingness to perform the task

17 -13 Transactional Vs. Charismatic Leadership n Transactional Leadership focuses on interpersonal interactions between managers and employees n n Mc. Graw-Hill Leader uses contingent rewards to motivate Leaders exert corrective action when subordinates fail to meet performance goals n Charismatic Leadership transforms employees to pursue organizational goals over self-interest n n Create, communicate, model vision Inspire employees to strive toward vision © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -14 Figure 17 -7 Charismatic Model of Leadership Organizational culture Leader behavior § Adaptive § Leader establishes a vision § Leader establishes high performance expectations and displays confidence in him/herself and the collective ability to realize the vision Mc. Graw-Hill Effects on followers and work groups Outcomes § Increased intrinsic motivation, achievement orientation, and goal pursuit § Personal commitment to leader and vision § Increased identification with the leader and the collective interests of organizational members § Increased cohesion among workgroup members § Self-sacrificial behavior § Organizational commitment © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -15 Figure 17 -7 cont. Charismatic Model of Leadership Organizational culture Mc. Graw-Hill Leader behavior Effects on followers and work groups § Leader models the desired values, traits, beliefs, and behaviors needed to realize the vision § Increased selfesteem, selfefficacy, and intrinsic interests in goal accomplishment § Task meaningfulness and satisfaction § Increased role modeling of charismatic leadership § Increased individual, group, and organizational performance Outcomes © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -16 Research and Managerial Implications n Charismatic leadership is most likely to be effective when n The situation offers opportunities for “moral” involvement n Performance goals cannot be easily established or measured n Extrinsic rewards cannot be clearly linked to individual performance n There are few situational cues or constraints to guide behavior n Exceptional effort, behavior, sacrifices, and performance are required of both leader and follower Mc. Graw-Hill © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Leader-Member Exchange (LMX Model) n 17 -17 This model is based on the idea that one of two distinct types of leader-member exchange relationships evolve, and these exchanges are related to important work outcomes. In-group exchange: a partnership characterized by mutual trust, respect and liking n Out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking n Mc. Graw-Hill © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -19 Tips for Improving the Quality of LMX n n New employees should offer their loyalty, support, and cooperativeness to their manager If you are an out-group member, either accept the situation, try to become an in- group member by being cooperative and loyal or quit Managers should consciously try to expand their in-groups Managers need to give employees ample opportunity to prove themselves Mc. Graw-Hill © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

n Leadership substitutes influence employee performance when leader cannot n Leadership enhancers make leadership more effective n Leadership neutralizers diminish leader’s ability to influence

17 -20 Table 17 -4 Substitutes of Leadership Relationship-Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary Characteristic Of the Subordinate 1) 2) 3) 4) Mc. Graw-Hill Ability, experience, training, knowledge X Need for independence X X “Professional” orientation X X Indifference toward organizational rewards © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -21 Table 17 -4 cont. Substitutes of Leadership Relationship-Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary Characteristic Of the Task 5) 6) 7) 8) Mc. Graw-Hill Unambiguous and routine X Methodically invariant X Provides its own feedback concerning accomplishment X Intrinsically satisfying X © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -22 Table 17 -4 cont. Substitutes of Leadership Relationship-Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary Characteristic Of the Organization 9) Formalization X 10) Inflexibility X 11) 12) Mc. Graw-Hill Highly specified and active advisory and staff functions Closely knit, cohesive work groups X X X © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 -23 Table 17 -4 cont. Substitutes of Leadership Relationship-Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary Characteristic Of the Organization Cont. 13) 14) Mc. Graw-Hill Organizational rewards not within the leader’s control Spatial distances between superior and subordinates X X © 2004 The Mc. Graw-Hill Companies, Inc. All rights reserved.