Chapter Fourteen Leadership McGraw-Hill/Irwin Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

What Does Leadership Involve? Universal Phenomena Everybody is concerned about it (especially in uncertain situations) Leadership Influencing employees to voluntarily pursue organizational goals

What Does Leadership Involve? Leader is responsible for : At the individual level : mentoring, motivating, performance management At the group level : team building, conflict management, communication At the organization level : building culture, creating changes,

Leadership theories Trait theory Behavioral theory Situational (Contingency) theories Fiedler’s contingency model Path-Goal Theory Hersey & Blanchard’s Situational leadership theory Transformational leadership Additional perspectives LMX model Shared leadership Servant leadership

Trait Theory Tried to identify leader trait Personal characteristics that differentiate leaders from followers Physical or personality characteristics However, researchers were unable to uncover a consistent set of traits

Gender as a trait 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 Men and women were equally assertive

Key Positive Leadership Traits Recent studies (after 1980s) found the positive traits, which lead to leadership effectiveness

Behavioral Theory This line of research began during WWII as an effort to develop better military leaders The Ohio State Studies identified two critical dimensions of leader behavior Consideration: creating mutual respect and trust with followers (Relationship-oriented) Initiating structure: organizing and defining what group members should be doing (Task-oriented)

Behavioral Theory Hc-Lis Hc-His Lc-Lis Lc-His High Consideration Low Low High Initiating Structure Hc-His combination was expected to yield the best leadership outcomes But, research results had been mixed There is no one best style of leadership Situational leadership Implication: Leader behaviors can be systematically improved and developed Many leadership development programs were introduced

Situational Theories Situational theories After 1960s Propose that leader behavior (styles) should match the situation at hand Each situational theory differs in terms of “leader behavior (leadership styles)” and “the situation”

Fiedler’s Contingency Model The leadership styles Task-motivated leadership Relationship-motivated leadership The situation Situational control – refers to the amount of control and influence the leader has in his immediate work environment

Fiedler’s Contingency Model 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

Fiedler’s Contingency Model Figure 14-1

Fiedler’s Contingency Model Mixed results Contribution Made others to think leadership in terms of contingency (“There is no one best style of leadership)

Path-Goal Theory House The leadership styles The situation Directive, supportive, participative, achievement-oriented The situation Employee characteristics Locus of control, task ability, need for achievement, experience, need for clarity Environmental factors Task structure, work group dynamics

Path-Goal Theory Hypotheses (Ex.) Situation Appropriate leader behavior Influence on followers Outcomes Followers lack confidence Supportive Leadership Increase in confidence Increases in efforts, satisfaction, performance Tasks are ambiguous Directive leadership Understand the paths for goal achievement Tasks are not challenging Achievement-oriented leadership Set higher goals Some positive supports for the theory

Hershey and Blanchard’s Situational Leadership Model The leadership styles Telling, Selling, Participating, Delegating The situation Readiness (or maturity) follower’s ability and willingness to complete a task

Hershey and Blanchard’s Situational Leadership Model Figure 14-3

Transformational Leadership Bass & Avolio The theory was suggested as the organizational changes had become major management issue The management needed the leadership that could bring about successful organizational rebirth The full-range model of leadership Laissez-faire leadership – transactional leadership – transformational leadership

Transformational Leadership Laissez-faire leadership The leader fails to take leadership responsibility The worst outcomes Transactional leadership Focuses on clarifying employees’ roles and providing rewards contingent on performance Some positive outcomes Suitable for maintaining status quo

Transformational Leadership Focuses on transforming employees to pursue organizational goals over self-interests Tries to engender trust, seek to develop leadership in others, exhibits self-sacrifice and serve as moral agents

Transformational Leadership Transformational leader behavior 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

Transformational Leadership Individualized consideration – providing support, encouragement, empowerment, and coaching to each employee Intellectual stimulation – behavior that encourages employees to question the status quo and to seek innovative solutions to organizational problems

A Transformational Model of Leadership Traits : Extraverted, agreeable, proactive leaders are more likely to be a transformational leader Organizational culture : Adaptive and flexible culture provides more chances for a transformational leader to surface

Transformational Leadership The relationships suggested in the model has been generally supported Research Implications The best leader is not just transformational; they are both transactional and transformational Transformational leadership can be trained

The Leader-Member Exchange (LMX) Model of Leadership Graen & Uhl-Bien Focuses on the quality of relationships between managers and subordinates as opposed to the behaviors or traits of either leaders or followers Tries to find out the relationship between the quality of the exchange and organizational outcomes such as JS, OC, performance

The Leader-Member Exchange (LMX) Model of Leadership Assumes that leaders develop unique one-on-one relationships with direct reports In-group exchange - a partnership characterized by mutual trust, respect and liking Out-group exchange - a relationship characterized by a lack of mutual trust, respect and liking ; mostly limited to formal relationship The JS, OC, and performance of in-group subordinates are usually higher than those of out-group subordinates

Shared Leadership Shared leadership - simultaneous, ongoing, mutual influence process in which people share responsibility for leading Ex : CEO teams (Bill Gates & Steve Balmer) Department Chairperson in Korean universities Autonomous work teams It’s most likely to be needed when people work in teams, when people are involved in complex projects, and when people are doing knowledge work

Servant Leadership Greenleaf Servant leadership - focuses on satisfying (increasing services to) others rather than oneself Respect subordinates’ dignity and value as a human being, and develop their creative potentials

Characteristics of the Servant-Leader