Chapter 12 Leadership and Followership No executive has ever suffered because his subordinates were strong and effective. ---Peter Drucker My grandfather once told me that there were two kinds of people: those who do the work and those who take the credit. He told me to try to be in the first group. There is much less competition. ---Indira Gandhi The quality of a leader is reflected in the standards they set for themselves. ---Ray Kroc MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Leadership What is leadership? What comes to your mind when you see this word? MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Management and Leadership According to Kotter: Management Reduces uncertainty Stabilizes organizations Leadership Creates uncertainty Creates change MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

MANA156 Behavior & Organization Managers and Leaders Plan & budget Organize & staff Control & solve problems Advocate for stability and status quo Set a direction for the organization Use communication to align people with that direction Motivate people to action through empowerment and basic need gratification Agitate for change & new approaches. LEADERSHIP MANAGEMENT Both make valuable contributions. Each one’s contributions are different MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Leadership and Followership Leadership – the process of guiding and directing the behavior of people in the work environment Formal leadership – the officially sanctioned leadership based on the authority of a formal position Informal leadership – the unofficial leadership accorded to a person by other members of the organization Followership – the process of being guided and directed by a leader in the work environment MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 2

MANA156 Behavior & Organization Trait Theories MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

LEADERSHIP BEHAVIORAL THEORY Autocratic Style – the leader uses strong, directive, controlling actions to enforce the rules, regulations, activities, and relationships; followers have little discretionary influence LEWIN STUDIES Democratic Style – the leader takes collaborative, reciprocal, interactive actions with followers; followers have high degree of discretionary influence Laissez-Faire Style – the leader fails to accept the responsibilities of the position; creates chaos in the work environment MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 14

Leadership Behavioral Theories (Ohio State/U of Michigan Studies) Constant leader influence Direct or close supervision Many written or unwritten rules & regulations Focus on getting work done Initiating Structure/Production Oriented Relationship-focused environment Less direct/close supervision Fewer written or unwritten rules & regulations Focus on employee concern and needs Consideration/Relationship Oriented © 2009 Cengage Learning. All rights reserved. MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 7

Leadership Grid Concern for People Concern for production 1,9 9,9 High 9 8 7 6 5 4 3 2 1 2 New Styles: Paternalistic Manager (uses rewards & punishment) Opportunistic Manager (aims to maximize self-benefit) 1,9 Country club management 9,9 Team management Concern for People 5,5 Organization man management Authority- obedience management 9,1 Impoverished management 1,1 1 2 3 4 5 6 7 8 9 High Low Concern for production MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Contingency Theories of Leadership Concerned with identifying the situationally-specific conditions in which leaders with particular traits are effective Central concern - how the leader’s traits interact with situational factors in determining team effectiveness in task performance leader situation MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Fiedler’s Contingency Theory Classifies the favorableness of the leader’s situation Looks at Least Preferred Coworker (LPC) - the person a leader has least preferred to work with over his or her career 3 Contingencies: Task Structure - degree of clarity, or ambiguity, in the group’s work activities Position Power - authority associated with the leader’s formal position in the organization Leader–Member Relations - quality of interpersonal relationships among a leader and group members MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 19

Findings of the Fiedler Model Good Task-Oriented Performance Relationship -Oriented Poor Favorable Moderate Unfavorable Category Leader-Member Relations Task Structure Position Power I Good High Strong II Weak III Low IV V Poor VI VII VIII MANA156 Behavior and Organization Dr. Bonnie S. O'Neill

Path–Goal Theory of Leadership Leader behavior styles Directive Supportive Participative Achievement oriented Follower path perceptions Effort–Performance– Reward linkages Follower goals Satisfaction Rewards Benefits Follower Characteristics Ability level Authoritarianism Locus of control Workplace characteristics Task structure Work group Authority system MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 21

Leadership Styles and Follower Readiness (Hersey and Blanchard) Unwilling Willing Supportive Participative Able Monitoring Leadership Styles High Task and Relationship Orientations Unable Directive MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 22

Hersey-Blanchard Situational Leadership® Model Follower Readiness High Moderate Low R4 R3 R2 R1 Able and willing or confident Able but unwilling or insecure Unable but willing or confident Unable and unwilling or insecure Follower Directed Leader Directed MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Personal compatibility, subordinate competence extroverted personality Leader-Member Exchange Theory Subordinate A C B In-group D F E Out-group Personal compatibility, subordinate competence and/or extroverted personality Leader Trust High interactions Formal relations MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Developments in Leadership Theory Substitutes for Leadership Satisfying task Performance feedback Employee’s high skill level Team cohesiveness Organization’s formal controls MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Developments in Leadership Theory Transformational Leadership As a transactional leader, I use formal rewards and punishments. As a transformational leader, I inspire and excite followers to high levels of performance. MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 8

Charismatic Leadership Charismatic Leadership – the use, by a leader, of personal abilities & talents in order to have profound & extraordinary effects on followers Charisma – means “gift” in Greek Charismatic leaders use referent power Potential for high achievement & performance Potential for destructive & harmful courses of action…WHY???? MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 12

Emerging Issues in Leadership Emotional Intelligence Trust Servant Leadership Women Leaders Do Men & Women Lead Differently? MANA156 Behavior & Organization Dr. Bonnie S. O’Neill

Five Types of Followers Independent, critical thinking Alienated followers Effective followers Survivors Passive Active Yes people Sheep Dependent, uncritical thinking MANA156 Behavior & Organization Dr. Bonnie S. O’Neill 24