Organizational Behavior BUS-542 Instructor: Erlan Bakiev, Ph.D. 1-1

Chapter 11 Leadership 11-2 Essentials of Organizational Behavior, 11/e Stephen P. Robbins & Timothy A. Judge

After studying this chapter, you should be able to: Define the leadership and contrast leadership and management. 2. Summarize the conclusions of trait theories of leadership. 3. Assess contingency theories of leadership by their level of support. 4. Compare and contrast charismatic leadership, transformational leadership, and authentic leadership. 5. Address challenges to the effectiveness of leadership. 6. Assess whether charismatic and transformational leadership generalize across cultures.

Leadership vs. Management  About coping with change.  Establishes direction with a vision.  Aligns resources and inspires workers to complete the vision and overcome hurdles.  About coping with complexity (Kotter, 1990)  Brings about order and consistency  Draws up plans, structures, and monitors results LeadershipManagement Leadership is the ability to influence a group toward the achievement of a vision or a set of goals.

Traditional Theories of Leadership: Trait Theories 11-5 Trait theory focuses on personal qualities and characteristics  Big Five Personality Framework Extraversion has strongest relation to leadership (Judge et al., 2002, Conscientiousness and Openness to Experience also strongly related to leadership Agreeableness and Emotional Stability are not correlated with leadership Emotional Intelligence is correlated with leadership, however, this link is under-investigated (Goleman, 2004)

Traditional Theories of Leadership: Behavioral Theories 11-6 Behaviors can be taught – traits cannot Leaders are trained – not born

Behavioral Theories: Ohio State Studies (Schriesheim et al., 1995; Judge et al., 2004) Attempts to organize work, work relationships, and goals Concern for followers’ comfort, well-being, status, and satisfaction 11-7 Initiating Structure Consideration Developed two categories of leadership behavior:

Behavioral Theories: University of Michigan Studies Emphasize the technical or task aspects of the job: people are means to an end Emphasize interpersonal relations and accept individual differences 11-8 Production Oriented Employee Oriented Developed two dimensions of leadership behavior:

Contingency Theories 11-9 Attempts to match leadership style with work context as one leadership style does not work in every situation.  Fiedler Model (LPC)(Feiedler, 1967)  Leader-Member Exchange (LMX) Theory (Stilwell, 1993; Masterson et al., 2000)

Fiedler Leadership Model This model proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control. Identifying Leadership Style: Least-Preferred Co-worker (LPC) determines leadership style (fixed trait)  Relationship oriented  Task oriented Match leader’s style with degree of situational control:  Leader-member relations  Task structure  Position power

Fiedler Model: Matching Leaders to Situations Either change leaders or the situation to improve effectiveness

Leader-Member Exchange (LMX) Theory  Leaders treat followers differently  In-group members:  Close to leader in attitude or personality  Have more of the leader’s attention  Get special privileges  Have higher performance ratings  Lower turnover  Greater satisfaction

Leader-Member Exchange (LMX) Model While the leader does the choosing, it is the followers’ characteristics that drive the decision

Charismatic Leadership Attributions of heroic leadership abilities when followers observe certain behaviors:  Vision  Personal Risk-taking  Sensitivity toward Followers  Extraordinary Behaviors (Conger and Kanungo, 1998)

Charismatic Leaders: Born or Made? Charisma is partially attributed to genetics and partially to training and experience. Charisma can be created by:  Developing an aura of charisma (Richardson and Thayer, 1993) Be optimistic Be passionately enthusiastic Commute with body, not just words  Drawing others in – inspire others  Tapping into emotions – bring out the potential in others

How Charismatic Leaders Influence Followers (Shamir et al., 1993)  Articulate an appealing vision  Communicates a new set of values  Model behaviors for those values  Express dramatic behavior

Charisma and Situational Dependency  Charisma strongly correlated to high performance and satisfaction (Hoogh et al., 2004)  Best used when:  Environment is uncertain or stressful (House, 1976; House and Aditya, 1997)  Ideology is involved (Pastor et al., 2007)  Most closely associated with upper level executives  People are most receptive to charisma when there is a crisis.

The Potential Dark Side of Charismatic Leadership  Use organizational resources for personal benefit  Remake companies in their own image  Allow self-interest and personal goals to override organization’s goals (Tosi, 2004)

Transformational Leadership  Transactional leaders - motivate their followers in the direction of established goals by clarifying role and task requirements  Transformational leaders - inspire followers to transcend their own self-interests for the good of the organization

Full Range of Leadership Model

Why Transformational Leadership Works Creativity Followers are encouraged to be more innovative and creative (Ling et ai., 2008) Goals Followers pursue more ambitious goals and have more personal commitment to them (Colbert et al., 2008) Vision Engenders commitment from followers and greater sense of trust

Evaluation of Transformational Leadership  Effectively used in various job levels and disparate occupations  Tends to be more effective in smaller companies (Ling et al., 2008)  Works better when the leader is closer to the followers  Transformational Leadership has positive job outcomes such as lower turnover and lower absenteeism (Hetland et al., 2007)

Transformational Vs. Charismatic Leadership  Both positively related to motivation, satisfaction, performance, effectiveness, and profitability  Transformational leadership MAY be a broader concept than charisma  The two forms may be the same

Authentic Leadership: Ethics as the Basis for Leadership?  Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly (Tan, 2006)  Create trust  Encourage open communication

Ethics and Leadership  Ethics and Leadership intersect at many junctures.  Executives set the moral tone for an organization so they must set and adhere to high ethical values.  Leadership is not value free, and the means by which a leader achieves their goal must be framed by ethics.

Trust Taking Risks Information Sharing Effective Groups Enhanced Productivity Trust

Challenges to the Leadership Construct  Attribution Theory of Leadership (Meindl, 1993; Schyns et al., 2007)  Performance outcomes are attributed to leaders actions  Appearance has more to do with leadership than outcomes  Substitutes and Neutralizers  Organizational variables can neutralize the leader’s influence or act as substitutes for leadership  Leader becomes irrelevant (Van Vugt and Spisak, 2008)

Online Leaders  Networked communication is a powerful channel  Challenges include identification-based trust  Leadership can be effective in an online environment and many of the same theories apply.  Electronic communication and writing skills need to be an extension of interpersonal skills

Global Implications GLOBE Leadership Project Results: Brazil – Leaders are participative and humane France – Bureaucratic, task-oriented, and autocratic Egypt – Participative but status-aware China – Initiating structure and consideration important: status differences but participation valued Charisma and transformational leadership important in all

Implications for Managers  Leaders influence group performance  Leadership success depends somewhat on having “the right stuff”  Leadership depends on the situation  Transformational skills becoming more important  Managers must be authentic and develop trust relationships with their followers  Select and train based on traits and qualities

Keep in Mind…  Leaders can influence a group toward the achievement of goals  Best leaders are ethical and authentic in addition to being charismatic  In most cultures, charisma and vision are valued – although their means of expression may differ

Summary Defined the leadership and contrasted leadership and management. 2. Summarized the conclusions of trait and behavioral theories. 3. Assessed contingency theories of leadership by their level of support. 4. Compared and contrasted charismatic leadership, transformational leadership, and authentic leadership. 5. Addressed challenges to the effectiveness of leadership. 6. Assessed whether charismatic and transformational leadership generalized across cultures.