Chapter 10

Leadership

• Leadership is needed to create change. • A leader must have the ability to influence other team members. • By definition a leader has to have followers• “Leadership is about coping with change.”

• Management is needed to create orderly results. • Managers have formal authority –however, whether or not they

are able to influence their subordinates may depend on more than just authority.

• Most teams require a manager to coordinate, liaise, schedule, contact, organize their affairs. “To cope with complexity”

• Management roles need not presuppose any ability to influence.

• Within a team environment, manager and leader are roles taken on by members of the team, and both are necessary for organizational success.

Table 10.2 Key differences between leaders and managers

Why leaders are needed in the 21st century?

• rapid change and continuous need for innovation

• global working and managing diversity

• achieving more with depleting resources

• more rules and stringent requirements for specification of product/service quality standards and cost cutting.

Trait Theories of Leadership• Theories that consider personality, social, physical, or

intellectual traits to differentiate leaders from non-leaders.• First developed in 1930s and 1940s. Not very useful, until

matched with the Big Five Personality Framework in 1990s.• Leadership Traits

– Extraversion– Conscientiousness– Agreableness– Stability

• Traits can predict leadership, but they are better at predicting leader emergence than effectiveness.

Results of Trait Studies• Although there was little consistency in the results of the various

trait studies, some traits did appear more frequently than others:– Emotional control– CharismaCharisma– Intelligence– Ambition and energyAmbition and energy– Self confidence– Honesty and integrityHonesty and integrity– Job relevant knowledge– High self-monitoringHigh self-monitoring

Behavioral Theories of Leadership

• Theories proposing that specific behaviors differentiate leaders from non-leaders.

• Behaviors, contrary to traits, could be observed.

• Differences between theories of leadership:– Trait theory: leadership is inherent, so we must identify the

leader based on his or her traits– Behavioral theory: leadership is a skill set and can be

taught to anyone, so we must identify the proper behaviors to teach potential leaders

• BORN VS. MADE LEADERS

Important Behavioral Studies• Ohio State University

– Found two key dimensions of leader behavior:• Initiating structure – the defining and structuring of roles,

emphasizing tasks, performance, meeting of deadlines• Consideration – job relationships that reflect trust and respect• Both are important

• University of Michigan– Also found two key dimensions of leader behavior:

• Employee-oriented – emphasizes interpersonal relationships, needs of employees and is the most powerful dimension

• Production-oriented – emphasizes the technical aspects of the job

• The dimensions of the two studies are very similar

Blake & Mouton’s Managerial (Leadership) Grid

The Grid combines the Concern for People vs. Concern for Production in the Ohio State and University of Michigan studies; leaders strive for the optimum style.

CONCERN CONCERN FOR FOR

PEOPLEPEOPLE

CONCERN FOR PRODUCTIONCONCERN FOR PRODUCTION

9

1

1 9

COUNTRY CLUB COUNTRY CLUB MANAGEMENT MANAGEMENT

(1,9)

INDIFFERENT, INDIFFERENT, IMPROVERISHED IMPROVERISHED

(1,1)

MMIDDLE OF THE ROAD IDDLE OF THE ROAD MANAGEMENTMANAGEMENT (5,5)

TEAMTEAM MANAGEMENTMANAGEMENT

(9,9)

AUTHORITYAUTHORITY, TASK , TASK MANAGEMENTMANAGEMENT

(9,1)

Contingency (or Situational) Theories• While trait and behavioral theories do help us understand

effectiveness, and an important component is missing: the environment in which the leader exists

• Depending on the situation, including the follower's capability and motivation, as well as the difficulty of the job, the leader reinvents him/herself.

• Three key theories:

– Fielder’s Model

– Path-Goal Theory

– Normative Model

Fiedler’s Contingency Model• Effective group performance depends on the proper match

between leadership style and the situation:– Assumes leadership style can be measured (based on orientation

revealed in LPC questionnaire).– High LPC leaders tend to have close and positive relationships and act in a

supportive way, even prioritizing the relationship before the task. – Low LPC leaders put the task first and will turn to relationships only when

they are satisfied with how the work is going.

• Considers Three Situational Factors:– Leader-member relations: degree of confidence, trust and respect in the

leader– Task structure: degree of structure and procedures in the job– Position power: leader’s ability to hire, fire, reward..

• For effective leadership: change to a leader who fits the situation or change the situational variables to fit the current leader

Defining the SituationConsidering the 3 situational factors, there are 8 different situations that a leaders can face. Based on research Fiedler predicts that:

# Leader-Member Relations

Task Structure(% procedurized)

Leader's Position- power

Most Effective leader

1 Good Structured Strong Low LPC

2 Good Structured Weak Low LPC

3 Good Unstructured Strong Low LPC

4 Good Unstructured Weak High LPC

5 Poor Structured Strong High LPC

6 Poor Structured Weak High LPC

7 Poor Unstructured Strong High LPC

8 Poor Unstructured Weak Low LPC

Figure 10.2 Contingency theory of leadership Source: Adapted from Fiedler (1967)

Assessment of Fiedler’s Model• Positives: Considerable evidence supports the model, especially

if the original 8 are grouped into 3 situations task oriented (Low LPC) leaders perform best in situations of

high & low control relationship oriented (High LPC) leaders performs best in moderate control situations

Problems:– The logic behind the LPC scale is not

well understood– LPC scores are not stable– Contingency variables are complex and

hard to determine

House’s Path-Goal Theory

• Describes the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that making the path that they should take clear and easy.they should take clear and easy.– Leaders help clarify the “path” to the worker’s

“goals” compatible with resources– In particular, leaders:

• Shows the way so that subordinates know which way to go• Remove roadblocks that are stopping them going there• Increasing the rewards along the route

– Leaders can display multiple leadership types

House determined 4 leadership behaviors:

DirectiveTelling followers what needs to be done; focuses on the work to

be done. Giving appropriate guidance along the way.

– Giving them schedules of specific work to be done at specific times.

– Rewards may also be increased as needed– Role ambiguity may be decreased (by telling them what they

should be doing).

– This may be used when the task is This may be used when the task is unstructuredunstructured and and complexcomplex and the follower is and the follower is inexperienced.inexperienced. This increases the follower's This increases the follower's sense of security and control and hence is appropriate to the sense of security and control and hence is appropriate to the situationsituation.

Supportive

Considering the needs of the follower, showing concern for their welfare and creating a friendly working environment. This includes:

– increasing the follower's self-esteem– making the job more interesting

– This approach is best when the work is This approach is best when the work is stressful, stressful, boring or hazardous.boring or hazardous.

Participative– Consulting with followers and taking their ideas into account when making decisions and taking particular actions.

– This approach is best when the followers are This approach is best when the followers are expert expert and and their advice is both needed and they expect to be able to their advice is both needed and they expect to be able to give it.give it.

Achievement oriented– Setting challenging goals, both in work and in self-

improvement (and often together).

– High standards are demonstrated and expected.

– The leader shows faith in the capabilities of the follower to succeed.

– This approach is best when the task is This approach is best when the task is complexcomplex

Vroom and Yetton’s Normative Model• How a leader makes decisions is as important as what is

decided

• Premise:– Leader behaviors must adjust to reflect task structure– Tells leaders how participative to be in their decision-making

• 5 leadership styles

• Researchers added two other factors that affect decision-making process– Minimizing decision time; is there a pressing deadline?– Does the decision affect one individual or the whole team?

5 Leadership Styles• AI

You solve the problem or make the decision yourself, using information available to you at the time.

• AII You obtain the necessary information from your follower(s), then decide on the solution to the problem yourself. You may or may not tell your followers what the problem is in getting information from them. The role played by your followers in making the decision is clearly one of providing the necessary information to you, rather than generating or evaluating alternative solutions.

• CI You share the problem with relevant followers individually, getting their ideas and suggestions without bringing them together as a group. Then, you make the decision that may or may not reflect your followers influence.

• CII You share the problem with your followers as a group, collectively obtaining their ideas and suggestions. Then, you make the decision that may or may not reflect your followers influence.

• GII You share a problem with your followers as a group. Together you generate and evaluate alternatives and attempt to reach agreement (consensus) on a solution. Your role is much like that of chairperson. You do not try to influence the group to adopt "your" solution, and you are willing to accept and implement any solution that has the support of the entire group.

Neo-charismatic theories• The focus is leader as communicator• Framing:

– The symbolic and emotionally appealing behaviors of leader.

– How some leaders can gain immense follower commitment

– Ignored in traditional and complicated leadership studies

• Two contemporary leadership theories: – Charismatic Leadership– Transformational Leadership

Charismatic Leadership• Followers make attributions of heroic or extraordinary

leadership abilities as they observe certain behaviors

• Four characteristics of charismatic leaders:– Have a vision – expressed as an idealized goal– Are willing to take personal risks to achieve the vision– Are sensitive to follower needs– Exhibit behaviors that are out of the ordinary

• People can be trained to exhibit charismatic behaviors – communicating high expectations, dynamic presence, active non verbals..

How Charismatic Leaders Influence?

A four-step process:1. Leader articulates an attractive vision

• Vision Statement: A formal, long-term strategy to attain goals

• Links past, present, and future

2. Leader communicates high performance expectations and confidence in follower ability

3. Leader conveys a new set of values by setting an example4. Leader engages in emotion-inducing and often

unconventional behavior to demonstrate convictions about the vision

Charismatic Leadership Issues• Importance of vision

– Must be inspirational, value-centered, realizable, and given with superior imagery and articulation

• Charismatic effectiveness and situation– Charisma works best when:

• There is a lot of stress and uncertainty in the environment• Followers have low self-esteem and self-worth• The leader is at the upper level of the organization• The follower’s task has an ideological component

• Dark Side of Charisma– Ego-driven charismatics allow their self-interest and

personal goals to override the organization’s goals

Transactional & Transformational Leaders• Transactional Leaders

– Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements

• Transformational Leaders– Inspire followers to transcend their own self-interests for

the good of the organization; they can have a profound and extraordinary effect on followers

• Not opposing, but complementary, approaches to leadership– Great transformational leaders must also be transactional;

only one type is not enough for success

Full Range of Leadership Model

• Leadership styles listed from passive to very active

• Note the ineffective styles are mostly transactional

• It is all about influencing followers

Issues with Transformational Leadership• Basis for Action:

– Transformational leadership works by encouraging followers to be more innovative and by providing ambitious goals

• Evaluation Based on the Research:– This theory does show high correlations with desired outcomes– This style of leadership can be taught

• Transformational vs. Charismatic Leadership:– Similar, but transformational leadership may be broader– Instrument-based tests measure roughly equivalent outcomes

Table 10.1 Summary of new era leadership theories

Table 10.1 Summary of new era leadership theories (Continued)

Authentic Leadership: Ethics and Trust• Authentic Leaders:

– Ethical people who know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly

– Primary quality is trust

• Build trust by:– Sharing information– Encouraging open communication– Sticking to their ideals

Leader-Member Exchange

• LMX Premise:– Because of time pressures, leaders form a special

relationship with a small group of followers: the “in-group” relatively stable over time

– This in-group is trusted and gets more time and attention from the leader (more “exchanges”)

– All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer “exchanges”)

– Leaders pick group members early in the relationship

LMX Model• How groups are assigned is unclear

– Follower characteristics determine group membership• Leaders control by keeping favorites close

• Research show that leaders indeed do differentiate among followers and that these disparities are far from random.

E-Leadership• Leadership at a Distance

– A contemporary leadership role

– The structure and tone of electronic messages can strongly affect the response of receivers.

– Building trust among the team members is the key.

– The lack of face-to-face contact in electronic communications removes the nonverbal cues that support verbal interactions.

– There is no supporting context to assist the receiver with interpretation of an electronic communication.