Course structure & overview News Introduction What is leadership? Impact of leadership What is a theory & what gives it utility? Manager-leader differences Evolution of leadership theories Next week: great person, trait, autocratic-democratic, normative

Objectives To identify the factors contributing to the emergence, maintenance, deterioration, and transformation of various styles of leadership. To describe the strengths, limitations, contingencies, and developmental plan for your preferred style of leadership. To identify the requisite skills for exercising effective leadership. To know the prominent concepts and themes of major theories and theorists of leadership. To critically evaluate the utility of leadership theories and practices. To use leadership theories to analyze case examples

Impact of Leadership Five leadership practices (LPI) are related to affective commitment (emotional identification & desire to stay) (Dunn, 1999). Leadership is related to job satisfaction, productivity, & organizational commitment (McNeese-Smith, 1991). Charismatic/transformational/visionary leadership at the top increases employee commitment, willingness to sacrifice in the interests of the mission (Waldman et al., 2001) Charismatic leaders are more influential in uncertain environments, and is more related to performance than transactional leadership Leadership & executive success accounts for 45-60% of the variability in productivity in general and 51% of variance in profit margins Performance of the organization is attributed to leadership regardless of his/her involvement (Meindl & Erlich) Poor leadership can hurt (e.g., Martha Stewart)

“Leadership has been the subject of an extraordinary amojnt of dogmatically stated nonsense” (Barnard, 1948) “Four decades of research on leadership have produced a bewildering mass of findings…The endless accumulations of empirical data has not produced an integrated understanding of leadership” “The popularity of leadership research has not been equaled by its relevance” (Kets de Vries, 1994) “If one cannot observe differences when leaders change, then what does it matter who occupies the positions or how they behave?” (Pfeffer, 1977) “What most leaders seem to have in common is the ability to awaken primitive emotions in their followers,,,(they) are masters at manipulating certain symbols” (Kets de Vries & Miller) (Stogdill, 1978) But not everyone agrees that leadership is the best thing since sliced bread…

Leadership Substitutes Highly cohesive & trained teams Intrinsic work satisfaction Technology & expert systems Professional norms & standards Substitute for leadership & leadership functions The arguments against leadership Leadership irrelevance Too many factors outside the leader’s control influence the business (Pfeffer) High-level leaders control only a few resources directly Firms usually choose leaders who are compatible with the firm Leaders are a product of the organizational culture Chaos & complexity theory: there are so many interdependent feedback systems in an organization it is impossible to attribute cause to leadership Leader Constraint Theory (McClelland et al, 1972) While leaders are constrained in their actions, there remains much room for influence Moderate view

Change Drivers How has the workplace and management changed since your parents entered the workforce? What was it, and what is it now?

Traditional Management ParadigmNew Management Paradigm Multilevel hierarchical organizationFlatter, distributed organization Centralized decision makingDecentralized decision making Status measured by amount of turf controlledStatus measured by success in achieving outcomes Funding inputs and intentionsFunding outcomes Face-to-face interactionTelecommunication and virtual interaction Homogenous staffingWorkforce diversity Job descriptionSkill portfolio Annual strategic planLearning organization Financial bottom lineTriple bottom line Efficiency and stabilityOngoing innovation Mass servicesMarket segmentation Work at central officeSatellite and home offices Paradigm shift in management

How to manage and lead… What are some theories of management and leadership that you have “grown up” with? How do you know that they work?

Pascale (1990)

Group relations training Organizational culture Learning Organization MBO Theory X Chaos Theory Teamwork Quality Circles Corporate Ethics Kaizen Leadership ethics Envisioning Patterns of Management Practices

So…how would you describe the “evolution” of leadership theories; how are they changing?

Leaders and Managers: What’s the difference and is it meaningful?

Good & Poor Leaders: What’s the difference? Make two columns: one of “good” leaders, the other “poor” leaders List several examples of each Identify the principles of what makes a leader good or poor

Leader Constraint Theory (McClelland et al, 1972) McClelland used the TAT to identify power needs, then examined projective stories from leaders containing the word “not.” Low scorers on activity inhibition were often occupied with personal dominance and winning at others’ expense’ high scorers more often expressed good for others, humanity, or some moral cause.

Leaders with high need for power and have high activity inhibition, are more effective leaders because they manifest their need for power in socially appropriate (“prosocial”) ways while also meeting their role demands for influence

What’s your personal leadership theory? What is “leadership”? How does one become a leader? What difference does it make in an organization? Can it be developed/trained? How?