Chapter Fourteen Leadership Mc GrawHillIrwin Copyright 2010 The

Chapter Fourteen Leadership Mc. Graw-Hill/Irwin Copyright © 2010 The Mc. Graw-Hill Companies, Inc. All rights reserved.

After reading the material in this chapter, you should be able to: • Review trait theory research, and discuss the takeaways from both the trait and behavioral theories of leadership. • Explain, according to Fiedler’s contingency model, how leadership style interacts with situational control. • Discuss House’s revised path-goal theory and Hersey and Blanchard’s situational leadership theory. 14 -2

After reading the material in this chapter, you should be able to: • Describe the difference between transactional and transformational leadership and discuss how transformational leadership transforms followers and work groups. • Explain the leader-member exchange (LMX) model of leadership and the concept of shared leadership. • Review the principles of servant leadership and discuss Level 5 leadership. • Describe the follower’s role in the leadership process 14 -3

What Does Leadership Involve? • Leadership - influencing employees to voluntarily pursue organizational goals 14 -4

Trait Theory • Leader trait - personal characteristics that differentiate leaders from followers. • Leadership prototype - mental representations of the traits and behaviors possessed by leaders. 14 -5

Gender and Leadership • Men and women were seen as displaying more task and social leadership, respectively • Women used a more democratic or participative style than men and men used a more autocratic and directive style than women 14 -6

Behavioral Styles Theory • The Ohio State Studies identified two critical dimensions of leader behavior. - Consideration: creating mutual respect and trust with followers. - Initiating structure: organizing and defining what group members should be doing. 14 -7

Question? Allen thrives on organizing and defining what group members should be doing to maximize output. According to the Ohio State researchers, Allen is exhibiting which of these behaviors? A. B. C. D. Initiating structure Concern for people Relationship-motivated Consideration 14 -8

Takeaways from Behavioral Styles Theory • Leader behaviors can be systematically improved and developed. • There is no one best style of leadership. • It is important to consider the difference between how frequently and how effectively managers exhibit various leader behaviors. 14 -9

Situational Theories • Situational theories - propose that leader styles should match the situation at hand. 14 -10

Fiedler’s Contingency Model The performance of a leader depends on two interrelated factors: 1. The degree to which the situation gives the leader control and influence 2. The leader’s basic motivation 14 -11

Fiedler’s Contingency Model • Situational control - refers to the amount of control and influence the leader has in his immediate work environment 14 -12

Three Dimensions of Situational Control • Leader-member relations - the extent to which the leader has the support, loyalty, and trust of the work group • Task structure - concerned with the amount of structure contained within tasks performed by the work group • Position power - the degree to which the leader has formal power to reward, punish, or otherwise obtain compliance from employees 14 -13

Representation of Fiedler’s Contingency Model Figure 14 -14

Question? Kimberly is a task-motivated leader. According to Fiedler's work, Kimberly would not be effective under which conditions? A. B. C. D. Situations of high control Conditions of low control Conditions of achievement-orientation Conditions of moderate control 14 -15

Path-Goal Theory • Describes how leadership effectiveness is influenced by the interaction between four leadership styles – directive, supportive, participative, achievement-oriented • Contingency factors - variables that influence the appropriateness of a leadership style 14 -16

Path-Goal Theory Reformulated Three key changes: 1. Leadership is more complex and involves a greater variety of leader behavior. 2. The role of intrinsic motivation and empowerment in influencing leadership effectiveness 3. Shared leadership 14 -17

A General Representation of House’s Revised Path-Goal Theory Figure 14 -2 14 -18

Categories of Leader Behavior 14 -19

Hershey and Blanchard’s Situational Leadership Model • Effective leader behavior depends on the readiness level of a leader’s followers. • Readiness - follower’s ability and willingness to complete a task 14 -20

Situational Leadership Model Figure 14 -3 14 -21

Question? Cathy is providing guidance to employees about what should be done and how to do it, scheduling work, and maintaining standards of performance. She is exhibiting the _____ leadership style, according to the Path-Goal Theory? A. Achievement-oriented B. Directive C. Supportive D. Middle-of-the-road 14 -22

Transactional Leadership • Transactional leadership - focuses on the clarifying employees’ roles and providing rewards contingent on performance. • Transformational leadership - transforms employees to pursue organizational goals over self-interests. 14 -23

Transformational Leader Behaviors • Inspirational motivation • Idealized influence • Individualized consideration • Intellectual stimulation 14 -24

Question? Coach Bryant gave many great halftime speeches. Which transformational behavior was this? A. B. C. D. Inspirational motivation Idealized influence Individualized consideration Intellectual stimulation 14 -25

A Transformational Model of Leadership Insert Figure 14 -4 14 -26

Managerial Implications 1. The best leaders are both transformational and transactional 2. Transformational leadership influences group dynamics and group-level outcomes 3. Employees can be trained to be more transactional and transformational 4. Transformational leaders can be ethical or unethical 14 -27

Maintaining Ethical Transformational Leadership 1. Create and enforce a clearly stated code of ethics. 2. Recruiting, selecting, and promoting people who display ethical behavior. 3. Develop performance expectations around the treatment of employees. 4. Train employees to value diversity. 5. Identify, reward, and publicly praise employees who exemplify high moral conduct. 14 -28

The Leader-Member Exchange (LMX) Model of Leadership • Focuses on the quality of relationships between managers and subordinates as opposed to the behaviors or traits of either leaders or followers. • Assumes that leaders develop unique oneon-one relationships with direct reports. 14 -29

The Leader-Member Exchange (LMX) Model of Leadership • In-group exchange - a partnership characterized by mutual trust, respect and liking • Out-group exchange - a partnership characterized by a lack of mutual trust, respect and liking 14 -30

Managerial Implications • Leaders are encouraged to establish highperformance expectations for all of their direct reports. • Managers should be careful that they don’t create a homogeneous work environment. 14 -31

Shared Leadership • Shared leadership - simultaneous, ongoing, mutual influence process in which people share responsibility for leading 14 -32

Considerations When Developing Shared Leadership Table 14 -33

Question? Jimmy’s team is working on the new Granny. Smith computer project. ____ leadership is most likely to be needed. A. B. C. D. Servant Shared Concurrent Contributory 14 -34

Servant Leadership • Servant leadership - focuses on increasing services to others rather than oneself - less likely to engage in self-serving behaviors that hurt others Read the Servant Leader newsletter 14 -35

Characteristics of the Servant-Leader 14 -36

Question? Rhonda tries to put herself in her subordinates shoes and will listen to their feelings and emotions. This is the servantleader characteristic of _____. A. B. C. D. Healing Awareness Persuasion Empathy 14 -37

The Level 5 Hierarchy Figure 14 -5 14 -38

Role of Followers in the Leadership Process • Critical for followers to understand their boss • Followers need to understand their own strengths and weaknesses • Followers should build on mutual strengths to accommodate the leader’s expectations 14 -39

Supplemental Slides • Slides 41 -45 contain extra non-text examples to integrate and enhance instructor lectures - Slide 41 -42: Leadership Development Slide 43: Succession Planning Slide 44: Transformational Leaders Slide 45: Video discussion slide 14 -40

Leadership Development 1. Develop a comprehensive strategy for integrated leadership development 2. Connect leadership development to organization’s environmental challenges 3. Use the leadership story to se the context for development 4. Balance global enterprise-wide needs with local individual needs 14 -41

Leadership Development 5. Employ emergent design and implementation 6. Ensure that development options fit the culture 7. Focus on critical moments of the leadership lifecycle 8. Apply a blended methodology 14 -42

Succession Planning 1. Visible support from the CEO and top management 2. Clearly defined leadership criteria 3. A defined plan to find, retain, and motivate future leaders 4. A simple, easy-to-follow, measurable process 14 -43

Vision Statements of Transformational Leaders • Walt Disney, Co. - Provide wholesome, high-quality entertainment to families throughout the world • Herb Kelleher, Southwest Airlines - To provide excellent service and great value to the flying public • Mary Kay Ash, Mary Kay Cosmetics - To enhance the self-esteem of women by building their financial independence while providing quality cosmetics. 14 -44

Video: Women Leading in the Workplace • Space Shuttle Commander Eileen Collins hopes to serve as a role model for other women. How has life in the USAF changed for women over the past several decades to allow her to be Shuttle Commander? • Commander Collins cites cultural issues as a potential cause of women not pursuing math and engineering oriented training and careers as frequently as men. Why do you think this is? • Based on what you saw in the video, do you think that family responsibilities prevent women from growing in their careers? 14 -45