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

After studying this chapter, you should be able to: Define the leadership and contrast leadership and management. Summarize the conclusions of trait theories of leadership. Assess contingency theories of leadership by their level of support. Compare and contrast charismatic leadership, transformational leadership, and authentic leadership. Address challenges to the effectiveness of leadership. 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 Brings about order and consistency Draws up plans, structures, and monitors results. Often researchers and practitioners do not distinguish between leadership and management. However, there are some key differences and understanding these differences can be helpful for organization improvement. Leadership is the ability to influence a group toward the achievement of goals. A leader does not have to be someone who holds a formal position or title. They can emerge from a group and provide vision and motivation to those around them. They are critical in helping people cope with change by establishing direction that relates to the vision. In order to achieve the vision they align resources and inspire workers to work towards organizational goals. Management deals with the complexity of the organization and works with planning, organizing, leading and controlling to bring about order and consistency in the organization. Even though the two roles have different areas of focus, both are necessary for organizational success. 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 Trait theory focuses on personal qualities and characteristics Big Five Personality Framework Extraversion has strongest relation to leadership 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 The trait theory of leadership looks at personality, social, physical or intellectual traits that differentiate leaders from non-leaders. Initially this theory was based on studies that looked at over 80 different traits, which allowed almost anything to be defined as leadership. A breakthrough occurred when researchers began to organize the traits into categories, and this became known as the Big Five Personality Framework where five groups of traits were found to be consistently present among leaders. Some essential leadership traits include extroversion, conscientiousness, openness , agreeableness and emotional intelligence (EI), although the link between EI and leadership has not been fully explored. With the many years of research dedicated to the trait theory of leadership it is widely accepted that traits do predict leadership. However, it is more likely that they predict the emergence of a leader than the effectiveness of a leader.

Traditional Theories of Leadership: Behavioral Theories Behaviors can be taught – traits cannot Leaders are trained – not born The behavioral theories of leadership focuses on the premise that behaviors can be taught and traits cannot so that leaders are trained not born.

Behavioral Theories: Ohio State Studies Developed two categories of leadership behavior: Initiating Structure Consideration Two key studies in the area of behavioral leadership advanced our understanding of the theory. The first was done at Ohio State University. They looked at important dimensions of leadership behavior and began with over 1000 dimensions. In the end, the Ohio State studies were able to narrow it down to two dimensions – initiating structure and consideration. Initiating structure is when the leader is able to define and structure their role and that of their employees to work towards the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader. Attempts to organize work, work relationships, and goals Concern for followers’ comfort, well-being, status, and satisfaction

Behavioral Theories: University of Michigan Studies Developed two dimensions of leadership behavior: Oriented Production Employee The University of Michigan Studies identified to key dimensions of leadership behavior as well. They are similar in nature to the Ohio State findings. However, the University of Michigan studies classified these behaviors as employee-oriented which looks at the interpersonal relationships between the leader and their followers; and production-oriented which focuses on the technical aspect of the job. Again, both are important for successful leadership. Emphasize the technical or task aspects of the job: people are means to an end Emphasize interpersonal relations and accept individual differences

Contingency Theories Attempts to match leadership style with work context as one leadership style does not work in every situation. Fiedler Model Leader-Member Exchange (LMX) Theory We can learn a lot from trait and behavior theories, but they do not tell the whole story. It is important to understand the environment that the leader is in to fully understand leadership effectiveness. The Contingency Theory takes the context in which the leader is operating into consideration and tries to isolate the conditions that allow for effective leadership. There are two key theories that enhance our understanding of leadership by explaining situational variables. They are Fielder’s Model, Hersey and the Leader-Member Exchange Theory of Leadership.

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 In this theory Fielder is trying to match the leader to the context. He proposes that leadership style is fixed. So that if the situation needs a charismatic leader and your current leader does not exhibit that style you need to change leaders. This leadership style can be determined by taking the LPC questionnaire (least preferred co-worker). After the leadership style is determined you can match the leader to the situation. There are three dimensions to find a successful match. The first situational factor is the Leader-member relationship, this ties back to our behavioral studies by looking at the degree of trust and respect they employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing and rewards. In Fiedler’s model you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization.

Fiedler Model: Matching Leaders to Situations This graph helps to visually determine the situational factors and what type of leader would succeed in this situation. There are eight possible situations in which a leader can find themselves in. By matching their LPC score with these eight different situations a leader can see where they will be most effective. For example, categories four through six would be better suited to relationship oriented leaders because Fielder proposes that they perform best in moderately favorable 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 Contingency theories have failed to account for followers and heterogeneous leadership approaches to individual workers. The Leader-Member Exchange theory begins to account for this. In this theory the premise is that because of time pressures leaders very quickly form special relationships with a small group of employees, the “in-group”. This group tends to be like the leader in terms of gender, race, age and other characteristics. This group quickly becomes part of the leader’s inner circle of communication and will receive more time and attention from the leader. This group will experience more stress because of the added workload. The “outgroup” is made of people who tend to be different than the leader and correspondingly receive fewer exchanges. As a result they are more likely to experience stress because of their relationship and may retaliate against the organization as they become discontent with their assignments.

Leader-Member Exchange (LMX) Model Followers play a large role in the success of a leader. The LMX states that the characteristics of the followers are what drives the decision-making with the leader. 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 Charisa comes from the Greek word meaning gift. When talking about a charismatic leader one will refer to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority. There are four key characteristics that are associated with a charismatic leader. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so the leaders needs to remain sensitive to the feelings and needs of their followers. Throughout the process the leaders may be engaging in behaviors that are perceived as counter to norms, thereby extraordinary.

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 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 The charismatic traits are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed. In reality it is a mix of genetics, training and experience. Charisma can be created. One way is to develop an aura of charisma by being optimistic, passionately enthusiastic and to communicate with behaviors and words. A leader can also create charisma by drawing in others through inspiration as well as by tapping into emotions of the individuals to bring out their potential.

How Charismatic Leaders Influence Followers Articulate an appealing vision Communicates a new set of values Model behaviors for those values Express dramatic behavior Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First, the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next, the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leader’s excitement and commitment to the goal. Next, the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They will choose behaviors that will help followers “catch” the emotions the leader is conveying and help achieve buy in of the followers. Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision to help the followers “catch” the vision.

Charisma and Situational Dependency Charisma strongly correlated to high performance and satisfaction Best used when: Environment is uncertain or stressful Ideology is involved Most closely associated with upper level executives People are most receptive to charisma when there is a crisis. Charismatic leaders have shown to be effective but it often depends on the context. This leadership style works best in an environment where it is uncertain,stressfull and where there is some ideology involved. It is more closely associated with upper level executives and people are most receptive to charismatic actions 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 There is a dark side to charismatic leadership if the leader misuses their skill set. In the past we have seen situations where leaders have abused the company resources and used them for their own benefit. Some leaders with strong charisma have remade the companies in their own image and left no plans for succession when they leave. In many cases the charismatic leader lets their own goals override those of the organization, thus creating a negative situation for the organization.

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 Transactional leaders motivate their followers towards the goals set by clarifying their roles in the process and what they need to do to reach the goals set. Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside. These two approaches are not contradictory in nature, in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.

Full Range of Leadership Model This exhibit shows the full range of the leadership model. The first four behaviors represent transactional approaches and begins with the Laissez-Faire approach, which is the most passive. As a leader progresses on the scale, they move towards more active behaviors. The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors they become more effective.

Why Transformational Leadership Works Creativity Followers are encouraged to be more innovative and creative Goals Followers pursue more ambitious goals and have more personal commitment to them Vision Engenders commitment from followers and greater sense of trust Transformational leadership works because it encourages creativity in the work force which spurs on new ideas and new ways of doing things. It also helps followers to pursue ambitious goals with a stronger commitment to achieving them. These two benefits are achieved because the vision of the leader engenders a commitment from the followers and increases their trust in the leader.

Evaluation of Transformational Leadership Effectively used in various job levels and disparate occupations Tends to be more effective in smaller companies Works better when the leader is closer to the followers Transformational Leadership has positive job outcomes such as lower turnover and lower absenteeism. Transformational leadership works in a variety of contexts but tends to be more effective in smaller companies. It does work better when the leader is more closely connected to the followers and can understand their situation. The link between transformational leadership and positive job outcomes is solid.

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 Both transformational and charismatic leadership are related to positive job outcomes such as motivation and job satisfaction. It is unclear how to distinguish between the two concepts, and they may be so similar they are seen as the same. It does seem to hold true that transformational leadership is a broader concept than charisma may be.

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 Create trust Encourage open communication Authentic leadership is a growing area of research. There are several components that need to be addressed when discussing authenticity in leadership. First we must look at authentic leaders. These are leaders who engage in reflection and understand who they are, what they believe and bring those two aspects together in their actions. Next, authentic leaders are able to create trust with their followers, and encourage a culture of open communication. These factors will help to create an authentic leader that people will follow.

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. There is a strong intersection of ethics and leadership. Over the past several years we have been involved in what many have called an ethical crisis in the business community. When we look at leadership we need to look at more than the results of the leader we must also look at the steps the leader took to achieve those results.

Enhanced Productivity Trust Trust Taking Risks Information Sharing Effective Groups Enhanced Productivity Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years this has been found to be a foundational characteristic of leadership. When trust is present followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one that does not hold their trust. Trust is developed over time. The interactions between the leaders and the followers are part of the development of trust, it goes both ways. Research has shown that the three main characteristics of a leader that instill trust are integrity, ability and benevolence. These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders it will encourage positive behaviors such as risk taking, information sharing, group interactions and productivity.

Challenges to the Leadership Construct Attribution Theory of Leadership 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 There are many challenges to understanding leadership. The attribution theory states that it is hard to attribute outcomes to leadership and that often, leadership is more about performance than outcomes. In addition, you can have an extremely effective leader but organizational variables can neutralize the leaders ability to lead and create change, thus rendering the leader as irrelevant.

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 As the nature and geography of work changes, it is important to adjust leadership style to account for that. One area where we have seen significant changes is through technology. As networked communication becomes increasingly common the challenge is to be able to build trust between people who only interact online. Initially it appears that many of the same leadership concepts apply however, additional writing and interpersonal skills may be needed to enhance effectiveness.

Charisma and transformational leadership important in all 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 Most of the theories we have explored are based on research gathered in English-speaking countries. When you look at research in other areas you will find different variables that will impact both leaders and follows. It is very important when in engaging in cross-cultural business opportunities that the difference in culture is considered. This is true when doing business in other countries, but it is also important to remember that many organizations are cross-cultural because of the make-up of their employees. The GLOBE study looked at 18,000 leaders in over 800 organizations in 62 countries. They found that the characteristics that determined transformational leadership were consistent across cultures. This is significant because it disputes the contingency view that leadership is dependent upon culture.

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 Leadership is a complex function in an organization but essential for success. Individuals, groups and organizations all need leaders and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective.

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 It is important to keep in mind that leaders do influence behavior and they can do so in a way that increases achievement of goals. The best leaders are ethical and authentic, although charisma is valued and coupled with vision it can be effective in most environments.

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

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