BBA 352 Organizational Behavior

Department of Business Administration

S.ChanCharmaine@chuhai.edu.hk www.chuhai.edu.hk/charmaine

Lecture 8Contemporary Issues in Leadership

Lecture 8Contemporary Issues in Leadership

Chapter Learning ObjectivesChapter Learning Objectives After studying this chapter, you should be able to:

– Show how framing influences leadership effectiveness.– Define charismatic leadership and show how it influences

followers.– Contrast transformational with transactional leadership and discuss

how transformational leadership works.– Define authentic leadership and show why ethics and trust are vital

to effective leadership.– Identify the three types of trust.– Demonstrate the importance of mentoring, self-leadership, and

virtual leadership to our understanding of leadership.– Identify when leadership may not be necessary.– Explain how to find and create effective leaders.– Assess whether charismatic and transformational leadership

generalizes across cultures.

Inspirational Approaches to LeadershipInspirational Approaches to Leadership

The focus is leader as communicator Framing:

– A way of communicating that shapes meaning

– A way for leaders to influence how others see and understand events, including selecting and highlight one or more aspects of a subject while excluding others.

– Ignored in traditional leadership studies: the ability of the leader to inspire others to act beyond their immediate self-interests.

Two contemporary leadership theories: – Charismatic Leadership

– Transformational Leadership

Charismatic Leadership 魅力型領導Charismatic Leadership 魅力型領導 Originated from Charisma (Greek “gift”) Robert House’s Charismatic Leadership Theory:

– Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors

Four characteristics of charismatic leaders:– Have a vision –idealized goal that proposes a future better than the

status quo, and is able to clarify the importance of the vision which are understood to others;

– Are willing to take personal risks to achieve the vision, including high costs, engage in self-sacrifice to achieve vision;

– Are sensitive to follower needs– perceptive of others abilities and responsive to their needs and feeling;

– Exhibit behaviors that are out of the ordinary and unconventional;

Traits and personality are related to charisma People can be trained to exhibit charismatic behaviors

How Charismatic Leaders Influence FollowersHow Charismatic Leaders Influence Followers 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

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

2. Leader conveys a new set of values by setting an example

3. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision

Charismatic Leadership IssuesCharismatic 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:

• The follower’s task has an ideological component

• There is a lot of stress and uncertainty in the environment

• The leader is at the upper level of the organization

• Followers have low self-esteem and self-worth

Dark Side of Charisma– Ego-driven charismatic allow their self-interest and personal

goals to override the organization’s goals

Transactional & Transformational LeadershipTransactional & Transformational Leadership

Transactional Leaders比較交易領導– Leaders who guide or motivate their followers in the direction of

established goals by clarifying role and task requirements

Transformational Leaders轉型領導– Inspire followers to transcend their own self-interests for the good of

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

– Leaders pay attention to the concerns and developmental needs of individual followers, change followers awareness of issues by helping them to look at old problems in new ways, able to excite, arouse and inspire followers to put extra efforts to achieve group goals.

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

type is not enough for success

Characteristics of the Two Types of LeadersCharacteristics of the Two Types of Leaders

Transactional Contingent Reward:

– Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments

Management by Exception:– Active: Watches and searches

for deviations from rules and standards, takes corrective action

– Passive: Intervenes only if standards are not met

Laissez-Faire: – Abdicates responsibilities,

avoids making decisions

Transformational

Idealized Influence: – Provides vision and sense of

mission, instills pride, gains respect and trust

Inspiration:– Communicates high expectations,

uses symbols to focus efforts, expresses important issues simply

Intellectual Stimulation:– Promotes intelligence, rationality,

and problem solving Individualized Consideration:

– Gives personal attention, coaches, advises

Issues with Transformational LeadershipIssues with Transformational Leadership

Basis for Action:– Transformational leadership works by encouraging followers to be

more innovative and creative 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 concepts, but transformational leadership may be considered

a broader concept than charisma.

– Instrument-based testing shows the measures to be roughly equivalent

Authentic Leadership: Ethics and TrustAuthentic 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

Still a new topic; needs more research

Ethics, Trust, and LeadershipEthics, Trust, and Leadership

Ethics touch on many leadership styles– As the moral leaders of organizations, CEOs must

demonstrate high ethical standards

– Socialized charismatic leadership: leaders who model ethical behaviors

Trust:– The positive expectation that another person will not act

opportunistically

– Composed of a blend of familiarity and willingness to take a risk

– Five key dimensions: integrity, competence, consistency, loyalty, and openness

Five Key Dimensions of TrustFive Key Dimensions of Trust Integrity

– Honesty and truthfulness Competence

– An individual’s technical and interpersonal knowledge and skills

Consistency– An individual’s reliability, predictability, and good

judgment in handling situations Loyalty

– The willingness to protect and save face for another person

Openness– Reliance on the person to give you the full truth

Basic Principles of TrustBasic Principles of Trust

Mistrust drives out trust

Trust begets trust

Trust can be regained

Mistrusting groups self-destruct

Mistrust generally reduces productivity

13-13

Contemporary Leadership Roles: MentoringContemporary Leadership Roles: Mentoring

Mentor:– A senior employee who sponsors and supports a less-experienced

employee (a protégé)

– Good teachers present ideas clearly, listen, and empathize

– Two functions: • Career

– Coaching, assisting, sponsoring

• Psychosocial

– Counseling, sharing, acting as a role model

– Can be formal or informal

– Mentors tend to select protégés who are similar to them in background: may restrict minorities and women

Contemporary Leadership Roles: Self-LeadershipContemporary Leadership Roles: Self-Leadership

Self-Leadership– A set of processes through which individuals

control their own behavior

– Effective leaders (superleaders) help followers to lead themselves

– Important in self-managed teams

To engage in self-leadership:1. Make a mental chart of your peers and

colleagues

2. Focus on influence and not on control

3. Create opportunities; do not wait for them

Contemporary Leadership Roles: Online LeadershipContemporary Leadership Roles: Online Leadership

Leadership at a Distance: Building Trust

– 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.

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

– An individual’s verbal and written communications may not follow the same style.

– Writing skills will likely become an extension of interpersonal skills.

Finding and Creating Effective LeadersFinding and Creating Effective Leaders Selection

– Review specific requirements for the job– Use tests that identify personal traits associated with

leadership, measure self-monitoring, and assess emotional intelligence

– Conduct personal interviews to determine candidate’s fit with the job

– Keep a list of potential candidates Training

– Recognize that all people are not equally trainable– Teach skills that are necessary for employees to become

effective leaders– Provide behavioral training to increase the development

potential of nascent charismatic employees

Global ImplicationsGlobal Implications

Certain types of leadership behaviors work better in some cultures than in others

Charismatic/Transformational Leadership– Seems to work across cultures

– May be an “universal” aspect of leadership in its focus on:• Vision and foresight

• Providing encouragement

• Trustworthiness

• Dynamic, positive, and proactive traits

Globalization may be the cause of these common concerns – we may be able to train a “universal” manager, if that person is culturally sensitive!

Summary and Managerial ImplicationsSummary and Managerial Implications

Companies are looking for transformational leaders – even if they only “look the part”

Transformational style crosses borders reasonably well

Effective managers must build trust with those they lead

Leadership selection and training are important to long-term success