Leadership

Chapter Fourteen

Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/IrwinOrganizational Behavior: Key Concepts, Skills & Best Practices, 3/e

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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.

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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.

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What Does Leadership Involve?

• Leadership – influencing employees to voluntarily pursue organizational goals

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Trait Theory

• Leader trait - personal characteristics that differentiate leaders from followers.

• Leadership prototype - mental representations of the traits and behaviors possessed by leaders.

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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

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Gender and Leadership

• Men and women were equally assertive• Women executives, when rated by their peers, managers, and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria

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Key Positive Leadership Traits

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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.

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Peter Drucker’s Tips for Improving Leadership Effectiveness

1. Determine what needs to be done.2. Determine the right thing to do for the

welfare of the entire enterprise or organization.

3. Develop action plans that specify desired results, probable restraints, future revisions, check-in points, and implications for how one should spend his or her time.

4. Take responsibility for decisions.

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Peter Drucker’s Tips for Improving Leadership Effectiveness

5. Take responsibility for communicating action plans and give people the information they need to get the job done.

6. Focus on opportunities rather than problems.

7. Run productive meetings. 8. Think and say “we” rather than “I”. 9. Listen first, speak last.

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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.

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Situational Theories

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

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Fiedler’s Contingency Model

The performance of a leader depends on two interrelated factors:

•The degree to which the situation gives the leader control and influence

•The leader’s basic motivation

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Question?

What refers to the amount of influence the leader has in his immediate work environment?

A. Contingency controlB. Situational controlC. Conditional influenceD. Position power

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Fiedler’s Contingency Model

• Situational control – refers to the amount of control and influence the leader has in his immediate work environment

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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

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Representation of Fiedler’s Contingency Model

Figure 14-1

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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

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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

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A General Representation ofHouse’s Revised Path-Goal Theory

Figure 14-2

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Categories of Leader Behavior

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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

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SituationalLeadership Model

Figure 14-3

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Transactional Leadership

• Transactional leadership - focuses on the clarifying employees’ roles and providing rewards contingent on performance.

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Transformational Leadership

• Transformational leadership - transforms employees to pursue organizational goals over self-interests.

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Question?

Which transformational leader behavior encourages employees to question the status quo?

A. Inspirational motivationB. Idealized influenceC. Individualized considerationD. Intellectual stimulation

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Transformational Leader Behaviors

• Inspirational motivation – establishing an attractive vision of the future, the use of emotional arguments, and exhibition of optimism and enthusiasm

• Idealized influence – sacrificing for the good of the group, being a role model, and displaying high ethical standards

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Transformational Leader Behaviors

• Individualized consideration – providing support, encouragement, empowerment, and coaching to employees

• Intellectual stimulation – behavior that encourages employees to question the status quo and to seek innovative solutions to organizational problems

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A Transformational Model of Leadership

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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.

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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 one-on-one relationships with direct reports.

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The Leader-Member Exchange (LMX) Model of Leadership

• in-group exchange - a partnership characterized bymutual trust, respect and liking

• out-group exchange - a partnership characterized bya lack of mutual trust, respect and liking

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Managerial Implications

• Leaders are encouraged to establish high-performance expectations for all of their direct reports.

• Managers should be careful that they don’t create a homogeneous work environment.

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Shared Leadership

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

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Shared Leadership

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Servant Leadership

• Servant leadership - focuses on increasing services to others rather than oneself

Read the Servant Leader newsletter

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Characteristics of the Servant-Leader

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The Level 5 Hierarchy

Figure 14-5

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Video: Martha Stewart

• In the accompanying supplementary video “Martha Stewart and Celebrity CEOs” (5:09), the impact of celebrities as leaders is examined.