Leadership Chapter 15 McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives Describe the concept of leadership Discuss several traits that are associated with leaders Summarize the two major behavior approaches to leadership Compare the situational approaches to leadership Identify some of the emerging perspectives of leadership Explain how leadership varies in cross-cultural contexts

Research focuses on two key leadership issues Introduction Research focuses on two key leadership issues Why some organizational members become leaders, while others do not Why some leaders are successful, while others are not

There is no consensus on what leadership is What is Leadership? There is no consensus on what leadership is Leadership qualities important in one situation may not be required in another Variables with which every leader must deal The people who are being led The task the people are performing The environment in which the people and task exist

What is Leadership? The process of influencing others to facilitate the attainment of the organization’s goals A formal leadership position is not needed to exert leadership behavior Informal leaders can be just as important to a group’s success as is the formal leader

Virtually all leaders of effective groups: What is Leadership? Virtually all leaders of effective groups: Provide direction and meaning to followers Generate trust Favor action and risk taking Are purveyors of hope

Is Leadership Important? Leaders can make a difference in end results The specific behaviors used to do this are ambiguous Evidence of the effect of leadership on performance is modest Even at the highest levels, leaders do not have unilateral control over resources and external factors

Is Leadership Important? Self-managing teams Empowerment teams Autonomous work groups Bosses are often replaced with teams, but no successful team is without leadership No successful team is without leadership

The trait theory of leadership Trait Approaches The trait theory of leadership An attempt to identify specific characteristics associated with leadership success Characteristics can be physical, mental, or personality

EXHIBIT 15.1 Traits Associated with Leadership Effectiveness

Reasons For Trait Theory Contradictory Research Findings Trait Approaches Reasons For Trait Theory Contradictory Research Findings The list of important traits is endless Trait test scores aren’t consistently predictive of leader effectiveness Leadership traits don’t operate singly, but in combination Patterns of effective behavior depend largely on the situation

Behavioral Approaches Focus on completing the task Use close supervision to ensure subordinates perform tasks using specified procedures Job-centered Leaders Focus on the people doing the work Delegate decision making Satisfy employee needs Creative a supportive work environment Employee-centered Leaders

Initiating Structure and Consideration The leader organizes and defines relationships in the group Establishes well-defined patterns and channels of communication Spells out ways of getting the job done Consideration Behavior indicating friendship, trust, respect, warmth, and rapport between leaders and followers

Initiating Structure and Consideration The linkage between consideration and initiating structure is complex Those scoring high on initiating structure had more employee grievances, but received higher proficiency ratings Those with a high consideration score received lower proficiency ratings, but had fewer subordinate absences

Trait and Behavioral Approaches Trait and behavioral approach shortcomings Behaviors and characteristics, helpful or essential in some situation, are unimportant in others These approaches fail to consider the interaction among people, tasks, and environments

Situational Approaches Situational theories suggest that leadership effectiveness is a function of the situation Each model has its advocates Each tries to identify the leader behaviors most appropriate for a series of situations Each tries to identify the leader-situation patterns or interactions for effective leadership

Situational Approaches Contingency Leadership Model (Fiedler) Group performance depends on the interaction between leadership style and situational favorableness Leadership style measured by the Least-Preferred Coworker Scale (LPC) Situational favorableness Leader-member relations Task structure Position Power

EXHIBIT 16.2 Summary of Fielder’s Variables & Styles

Leadership Actions to Change Situations Request particular people for work in the group Transfer subordinates out of the unit Volunteer to direct difficult or troublesome subordinates To modify leader-member relations Introduce new or unusual tasks/problems Break jobs down into smaller subtasks that can be more highly structured To modify task structure

Leadership Actions to Change Situations Show subordinates who is boss by exercising fully the authority you have Make sure that information to the group gets channeled through you Let subordinates participate in planning and decision making To modify position power

Vroom-Jago Leadership Model Vroom and Yetton assumptions The model should help managers determine which leadership style to use in various situations No single style is applicable to all situations Focus should be on the problem to be solved and the situation in which it occurs The leadership style used in one situation should not constrain the styles used in other situations Social processes influence the amount of participation by subordinates in problem solving

Vroom-Jago Leadership Model Key Components of the Vroom-Jago Model Specifies the criteria by which decision effectiveness is judged Framework for describing specific leader behaviors or styles Diagnostic variables that describe key aspects of the leadership situation

Vroom-Jago Leadership Model Decision effectiveness is based on decision quality and subordinate commitment Decision quality: the extent to which the decision impacts job performance Subordinate commitment: how important it is that subordinates be committed to or accept the decision May also be influenced by time constraints

Vroom-Jago Decision Styles Autocratic Group Delegated Consultative

EXHIBIT 15.3 Vroom-Jago Decision Styles

Vroom-Jago Diagnostic Procedure Perform a situational diagnosis by asking a series of questions How important is the technical quality of the decision? How important is subordinate commitment to the decision? Do you have sufficient information to make a good decision? Is the problem well structured? And so on…

EXHIBIT 15.4 Example of Vroom-Jago Rules of Thumb

Path-Goal Leadership Model Leaders are effective because of their positive impact on followers’ Motivation, ability to perform, and satisfaction Leaders influence followers’ perceptions of Work goals Self-development goals Paths to goal attainment

Path-Goal Leadership Model Leader Behavior Directive Supportive Participative Achievement-oriented Situational Variables Personal characteristics of subordinates Environmental pressures and demands

EXHIBIT 15.5 Framework of Revised Path–Goal Leadership Perspective

Situational Leadership Theory Hersey and Blanchard developed an appealing situational leadership theory Advocates that managers understand their own behavior Emphasizes followers and their level of maturity Leaders must use a leadership style that matches the followers’ maturity level Job readiness Psychological readiness

Situational Leadership Theory Proposed Leadership Styles Telling Selling Delegating Participating

EXHIBIT 15.6 The Hersey-Blanchard Situational Leadership Model

Comparing Situational Approaches Similarities between the situational leadership models All focus on the dynamics of leadership All have stimulated research on leadership All remain controversial because of measurement problems, limited research testing, or contradictory research results

EXHIBIT 15.7 Summary Comparison of Four Important Situational Models of Leadership

Emerging Perspectives of Leadership Charismatic Leaders John F. Kennedy, Winston Churchill, Mother Teresa, and Steve Jobs were charismatic leaders Charisma enables leaders to motivate followers to achieve outstanding performance People who take on hero qualities gain charisma A charismatic leader creates motivation based on an emotional commitment to, and identity with, his/her vision, philosophy, and style

EXHIBIT 15.8 Behavioral Components of Charismatic and Noncharismatic Leaders

Two Types of Charismatic Leaders Through communication ability, links followers’ needs and goals to job or organizational long-term goals and possibilities Visionary Focus is on the short-term Has an impact in situations where existing resources, knowledge, and procedures are inadequate Crisis-Based

Transactional Leadership Helps followers identify what must be done to achieve desired results Uses path-goal concepts Takes followers’ self-concept and esteem needs into consideration Relies on contingent rewards and management by exception

EXHIBIT 15.9 Transactional Leadership

The Transformational Leader Goals instead of short-term self-interest Achievement and self-actualization instead of security Motivates followers to work for… The employees’ reward is internal

Transactional Leadership Transactional leadership is not often found in organizational settings The majority of workers do not feel that good pay is contingent on good performance Leaders must learn to… Understand what employees want Administer rewards in a timely manner Emphasize the pay-performance link

The Transformational Leader To achieve their vision, transformational leaders make major changes in the Mission Way of doing business Human resource management Philosophy, system, and culture of an organization

The Transformational Leader Bass identified five factors that describe transformational leaders Charisma (transformational) Individual attention (transformational) Intellectual stimulation (transformational) Contingent reward (transactional) Management by exception (transactional)

Coaching Everyday interaction of helping another employee improve his or her understanding of the work in order to improve performance

Coaches Comes in all varieties Aren’t always linked to seniority Leader skills, experience, abilities Talent for observing and decision making Exceptional communication ability Knows reward-performance feedback Nonjudgmental

Coaching Coaching hints Observe the detail Develop the person’s strengths Work to improve people, not change them Require continual improvement Pace the person Believe you can be the best

Recommended Coaching Techniques Practice active listening Support learning with action & reflection Move from easy to hard skills Set goals Provide tactful feedback, positive and negative

Servant Leadership The servant leader Emphasizes employee growth and service to others as worthwhile ends in and of themselves Places other’s needs in front of their own

Multicultural Leadership A leader’s personality, efforts, or style may conflict with the context of the environment Bass found that leadership attributes linked with effective leadership vary across cultures Employees who rank high on power distance prefer an autocratic leader Employees low in power distance prefer a participative style of leadership

Factors Linked to Multicultural Leadership Effectiveness Preferred awareness Actual awareness Submissiveness to rules and authority Reliance on others Favoring of group decision making Concern for human relations Cooperative peer relations

In Review, Did We… Describe the concept of leadership Discuss several traits that are associated with leaders Summarize the two major behavior approaches to leadership Compare the situational approaches to leadership Identify some of the emerging perspectives of leadership Explain how leadership varies in cross-cultural contexts