1. Chapter 12 Leaders and Leadership

2. What is Leadership? Exerting influence
Helping a group achieve its goals
Leadership is defined as the exercise of influence by one member of a group or organization over other members to help the group or organization achieve its goals.
Thus, the two key parts of leadership are exerting influence, and helping to achieve goals.
The web link will take you the Center for Creative Leadership.

3. Leadership
Leaders are individuals who exert influence to help meet group goals
Formal
Informal
Leader effectiveness is the extent to which a leader actually does help
Formal leaders are those managers who are given the authority to influence other members in the organization to achieve its goals. Informal leaders have no formal job authority but can exert just as much influence in an organization as formal leaders. The ability of informal leaders to influence others may stem from special skills or talents they possess – skills the organization’s members realize will help it achieve its goals.

4. Early Approaches to Leadership
Leader Trait Approach
Behavior Approach
Fiedler’s Contingency Model
Each theory of leadership complements the others. There is no one right or only way to become an effective leader.
These theories are discussed on the following slides.

5. The Leader Trait Approach
Intelligence
Task-relevant knowledge
Dominance
Self-confidence
Energy/activity levels
Tolerance for stress
Integrity and honesty
Emotional maturity
The Leader Trait approach sought to identify enduring personality traits that distinguish leaders from followers and effective leaders from ineffective ones. This is the list of relevant traits.
Intelligence helps a leader solve complex problems.
Task-relevant knowledge ensures that leader knows what has to be done, how it should be done, what resources are required, and so on, for a group and organization to achieve its goals.
Dominance is an individual’s need to exert influence and control over others,
helps a leader channel followers’ efforts and abilities toward achieving group
and organizational goals.
Self-confidence helps a leader influence followers and persist in the face of obstacles or difficulties.
Energy/activity levels, when high, help a leader deal with the many demands he or she faces on a day-to-day basis.
Tolerance for stress helps a leader deal with the uncertainty inherent in any leadership role.
Integrity and honesty ensure that a leader behaves ethically and is worthy of followers’ trust and confidence.
Emotional maturity ensures that a leader is not overly self-centered, can control his or her feelings, and can accept criticism.

6. The Leader Behavior Approach
Consideration
Initiating
Structure
Later, researchers focused what leaders actually do. Researchers at Ohio State University in the 1940s ad 1950s realized that leaders influence followers through concrete behaviors. After analyzing responses to surveys measuring 1800 concrete behaviors, the researchers found that the most leader behaviors involved either consideration or initiating structure.
Initiating Structure refers to behavior that a leader engages in to make sure that work gets done and subordinates perform their jobs acceptably. It is also known as job-oriented behavior.
Consideration is behavior indicating that a leader trusts, respects, and values good relationships with his or her followers. It is also known as employee-centered behavior.

7. The Behavior Approach Leader Reward Behavior Leader Punishing Behavior
In addition to engaging in consideration and initiating structure, leaders behave in other ways that have important effects on their followers. Leaders also administer reinforcements (rewards) and punishments.
Leader reward behavior occurs when a leader positively reinforces subordinates’ desirable behavior.
Leader punishing behavior occurs when a leader reprimands or otherwise responds negatively to subordinates who perform undesired behavior.
It is generally more effective to use reinforcement to encourage desired behavior than to use punishment to stop undesired behavior. Punishment can have unintended side effects such as resentment.
Leadership behaviors can be measured with the Leadership Behavior Description Questionnaire or the Leadership Opinion Questionnaire. Figure 11.1 provides some of the questions.

8. Fiedler’s Contingency Theory of Leadership
Leadership effectiveness determined by
The characteristic of individuals
The situations in which they find themselves
Distinct leader styles
Relationship-oriented
Task-oriented
Fred Fiedler’s theory is one of the most popular approaches to understanding leadership. It helps to explain why some leaders will be more effective than other leaders with equally good credentials in particular situations and why a particular leader may be effective in one situation but not in another.
Fiedler’s theory acknowledges that personal characteristics influence the effectiveness of leaders. He identified two distinct leader styles – relationship-oriented and task-oriented. He proposed that all leaders are characterized by one style or the other.
Relationship-oriented leaders want to be liked by and get along well with their subordinates. Task-oriented leaders want their subordinates to perform at a high level and accomplish all of their assigned tasks.
According to Fiedler, a leader’s style is an enduring personality characteristic. A relationship-oriented leader cannot be trained to be task-oriented and vice versa.

9. Table 2.2 Fiedler’s Contingency Theory of Leadership
Relationship-oriented
Wants to be liked by and to get along well with subordinates
Getting job done is second priority
Task-oriented
Wants high performance and accomplishment of all tasks
Getting job done is first priority

10. Measuring Leader Style
Least preferred co-employee scale
High LPC leaders = relationship-oriented
Low LPC leaders = task-oriented
Fiedler devised and used a unique scale to measure leader style: the least preferred co-employee scale. He asked leaders to think about their least preferred co-worker or the co-employee with whom they have the most difficulty working. The leader was then asked to rate the LPC on a number of dimensions such as the extent to which the LPC was friendly, enthusiastic, and pleasant.
Relationship-oriented leaders described their LPC in relatively positive terms. They were able to say some good things about the co-employee with whom they had the most difficulty working. In contrast, task-oriented leaders described their LPC negatively. They believed their LPC had few redeeming qualities.

11. Situational Characteristics
Leader-Member Relations
Task Structure
Position Power
Fiedler proposed that situations vary in their favorability for leading. When a situation is favorable for leading, it is easier for a leader. Three characteristics determine how favorable situations are for leading.
Leader-Member Relations refers to the relationship between the leader and his or her followers. If the relationship is good (full of trust and loyalty) then the situation is favorable.
Task Structure is the extent to which the work to be performed by a group is clearly defined. When a group has specific goals that need to be accomplished and every group member knows how to go about achieving the goals, task structure is high. When group goals are vague, members are not sure how to go about performing their jobs. When task structure is high, the situation is more favorable for leading.
Position power is the amount of formal authority that a leader has. If a leader has the power to reward and punish subordinates then position power is high. A situation is more favorable when position power is high.
All possible combinations of these three variables results in eight leadership situations. These are depicted on the next slide.

12. Figure 12.2
Octants I, II, and III are very favorable for leading. Octants IV, V, VI, and VII are moderately favorable. Octant VIII is very unfavorable.
Task-oriented leaders are most effective in situations that are very favorable or very unfavorable. Relationship-oriented leaders are most effective in moderately favorable situations.
Fiedler advocates assigning the leader to situations in which they will be effective.

13. Contemporary Perspectives on Leadership
Path-Goal Theory
Vroom and Yetton Model
Leader-Member Exchange Theory
Several newer theories have been proposed. They are based on a contingency model that takes into account both the characteristics of leaders and the situation in which they try to lead.

14. Path-Goal Theory
A theory which describes how leaders can motivate their followers to achieve group and organizational goals and the kinds of behaviors leaders can engage in to motivate followers.
Path-Goal Theory was developed by Robert House. It suggests that effective leaders follow three guidelines to motivate their followers. The guidelines are based on the expectancy theory of motivation and are listed on the next slide.

15. Guidelines for Path-Goal Theory
Determine what outcomes subordinates are trying to obtain in the workplace
Reward subordinates for performing at a high level or achieving their work goals by giving them desired outcomes
Make sure subordinates believe that they can obtain their work goals and perform at a high level
The first guideline relates to valence in expectancy theory. The second relates to instrumentality and the final guidelines relates to expectancy.
House also identified four types of behaviors that leaders can engage in to motivate subordinates. They are listed on the next slide.

16. Path-Goal Theory: Types of Behaviors
Directive behavior
Supportive behavior
Participative behavior
Achievement-oriented behavior
Directive behavior is similar to initiating structure. It lets subordinates know what tasks need to be performed and how they should be performed.
Supportive behavior is similar to consideration. It lets subordinates know that their leader cares about their well-being and is looking out for them.
Participative behavior enables subordinates to be involved in making decisions that affect them.
Achievement-oriented behavior pushes subordinates to do their best. It includes setting difficult goals for followers, expecting high performance, and expressing confidence in their capabilities.

17. Vroom and Yetton Model Autocratic Consultative Group Delegated
One of the most important things that leaders do in organizations is make decisions. The Vroom and Yetton Model was developed in the 1970s by Victor Vroom and Philip Yetton to describe the different ways in which leaders can make decisions. The model offers guidelines regarding the extent to which subordinates should participate in decision making.
An autocratic decision making style means that the leader makes the decision without input from subordinates.
A consultative decision making style means that subordinates have some input but the leader makes the decision.
A group style means that the group makes the decision and the leader is just another group member.
The delegated style means the leader gives exclusive responsibility to subordinates.
The model suggests that leaders should choose among these alternatives on the basis of the nature of the situation and the subordinates involved.

18. Criteria for Decision-Making Style
Nature of the tasks
Level of task interdependence
Output being produced
Characteristics of the employees
Which decision making style is best for a situation depends on these factors.

19. Figure 12.3 Leader-Member Exchange Theory
Leader-member exchange theory describes the different kinds of relationships that may develop between a leader and a follower and describes what the leader and the follower bring to and get back from the relationship.
The theory focuses on the leader-follower dyad – the relationship between the leader and the follower. The theory proposes that each dyad develops a unique relationship that stems from unfolding interactions between the leader and the follower.
Although each relationship is unique, the theory suggests that two general kinds of relationships develop in leader-follower dyads. In some dyad, the leader develops a special relationship with the subordinate, characterized by mutual trust, commitment, and involvement. In these dyads, there is mutual influence and support. The subordinates in these relationships are said to be in the in-group.
Other subordinates develop a more traditional relationship with their leader. Te leader relies on his or her formal authority and position in the organization to influence the subordinate and the subordinate is expected to perform his or her job in an acceptable manner and to follow rules and the directives of the leader. These dyads are characterized as impersonal, distant, and cold. The subordinates are said to be in the out-group.

20. Leadership Substitutes and Neutralizers
Characteristics of the subordinate
Characteristics of the work
Characteristics of the group
Characteristics of the organization
A leadership substitute is something that acts in place of a formal leader and makes leadership unnecessary. All of the characteristics listed in the slide have the potential to act as substitutes for leadership.
A leadership neutralizer is something that prevents a leader from having any influence and negates the leader’s efforts. When neutralizers are present, there is a leadership void. The leader has no effect and there is nothing to take the leader’s place. The characteristics in the slide can also serve as neutralizers.
Substitutes can be functional because they free up the leader’s time for other activities. However, neutralizers are dysfunctional because a leader’s influence is lacking.

21. New Topics in Leadership Research
Transformational and Charismatic Leadership
Transactional Leadership
Leader Mood
Gender and Leadership
Transformational Leadership occurs when a leader transforms, or changes, his or her followers in three important ways that together result in followers’ trusting the leader, performing behaviors that contribute to the achievement of organizational goals and being motivated perform at high levels. It is described further on the remaining slides.
Transactional leadership occurs when a leader motivates followers purely by exchanging rewards for good performance and noticing and reprimanding subordinates for mistakes and substandard performance
Leader Mood suggests that mood affects a leader’s effectiveness. In addition to mood, a leader’s level of emotional intelligence may also contribute to leader effectiveness.
A common stereotype in organization is that women are relationship-oriented while men are task-oriented. Consequently, one might expect gender to have an effect on leadership. Some research suggests that there are no differences in leader style based on gender. Other research found that women tend to be more democratic while men were more autocratic. Some research suggests that women may have better leadership skills than men. Women receive higher scores on communication and listening, work quality, and motivational skills.

22. Figure 12.4 Transformational Leadership
Follower
Has charisma
Is motivated
to perform
Is aware of need
for growth
ss aware of task
importance
is intellectually
stimulating
engages in
developmental
consideration
This figure shows the characteristics of a transformational leader and how followers respond to that leadership style.

23. Characteristics of Transformational Leadership
Charisma
Developmental Consideration
These three characteristics are key to transformational leadership.
Charismatic leaders communicate a vision to their followers. They share their excitement and enthusiasm with the followers to induce the followers to support the vision. Charismatic leaders tend to have high levels of self-confidence and self-esteem.
Transformational leaders also influence followers by intellectually stimulating them to become aware of problems in their groups and organization and to view these problems from a new perspective that is consistent with the leader’s vision.
Transformational leaders also influence their followers through developmental consideration. Developmental consideration includes not only the consideration behavior discussed earlier but also behavior that supports and encourages followers and gives them opportunities to develop and grow on the job by acquiring new skills and capabilities.
Intellectual
Stimulation