1. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-1

2. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-2 Chapter Leadership 15

3. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-3 Introduction Research focuses on two key leadership issues: 1.Why some organizational members become leaders while others do not 2.Why some leaders are successful while others are not

4. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-4 What is Leadership? Leadership – the process of influencing others to facilitate the attainment of organizationally relevant goals One does not have to be in a formal leadership position in order to exert leadership behavior

5. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-5 Bennis’ Characteristics of Leaders of Effective Groups: 1.They provide direction and meaning to the people they are leading 2.They generate trust 3.They favor action and risk taking 4.They are purveyors of hope 1.They provide direction and meaning to the people they are leading 2.They generate trust 3.They favor action and risk taking 4.They are purveyors of hope

6. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-6 Trait Approaches to Leadership Assumes that a finite number of individual traits of effective leaders can be found intelligence personality physical characteristics Relies on research that relates various traits to certain success criteria Research findings are contradictory

7. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-7 Traits Associated With Leadership Effectiveness: IntelligencePersonalityAbilities Judgment Decisiveness Knowledge Fluency of speech Adaptability Alertness Creativity Personal integrity Self-confidence Emotional balance and control Independence (nonconformity) Ability to enlist cooperation Cooperativeness Popularity and prestige Sociability (interpersonal skills) Social participation Tact, diplomacy

8. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-8 Shortcomings of the Trait Theory of Leadership The list of potentially important traits is endless Trait test scores are not consistently predictive of leader effectiveness Patterns of effective behavior depend largely on the situation The trait approach fails to provide insight into what the effective leader does on the job

9. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-9 Behavioral Approaches to Leadership: The Michigan Studies (1 of 2) Job-centered leader. Focuses on completing the task Uses close supervision and specified procedures Relies on coercion, reward, and legitimate power to influence behavior and performance of subordinates

10. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-10 Behavioral Approaches to Leadership: The Michigan Studies (2 of 2) Employee-centered leader. Focuses on the people doing the work Believes in delegating decision making Concerned with subordinates’ personal advancement, growth, and achievement

11. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-11 How Managers Can Increase Employee- Centered Behaviors (1 of 2) 1.Whenever possible, use rewards rather punishments for reinforcing and modifying subordinate behaviors 2.Keep lines of communication open at all times 3.Listen 4.Try to obtain positive outcomes for subordinates

12. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-12 How Managers Can Increase Employee- Centered Behaviors (2 of 2) 5.Provide opportunities when possible for employees to accomplish personal career objectives 6.Don’t be afraid to admit mistakes

13. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-13 Behavioral Approaches to Leadership: The Ohio State Studies Initiating structure. Organizes and defines the relationships in the group Tends to establish well-defined patterns and channels of communication Spells out ways of getting the job done Consideration. Behavior indicating friendship, mutual trust, respect, warmth, and rapport between the leader and the followers

14. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-14 Shortcomings of the Behavior Theories of Leadership The linkage between leadership and key organization performance indicators has not been conclusively resolved The theories do not take into account the role of environmental variables in leadership effectiveness The theories do not consider situational variables

15. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-15 Situational Theories of Leadership Advocate that leaders understand their own behavior, the behavior of their subordinates, and the situation before utilizing a particular leadership style This approach requires the leader to have diagnostic skills in human behavior

16. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-16 Key Situational Leadership Theories Fiedler’s Contingency Leadership Model Vroom-Jago Leadership Model House’s Path-Goal Model Hersey-Blanchard Situational Leadership Theory Fiedler’s Contingency Leadership Model Vroom-Jago Leadership Model House’s Path-Goal Model Hersey-Blanchard Situational Leadership Theory

17. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-17 Fiedler’s Contingency Leadership Model The performance of groups is dependant on the interaction between leadership style and situational favorableness Leadership style Task-oriented leadership Relationship-oriented leadership Situational factors Leader-member relations Task structure Position power

18. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-18 Situational characteristics I II III IV V VI VII VIII GoodGoodGoodGoodPoorPoorPoorPoor High HighLowLowHighHighLowLow StrongWeakStrongWeak Strong WeakStrongWeak Situation Leader-member relations Task structure Position power Preferred leadership styles Task-Oriented Relationship-Oriented Task- Oriented Very Favorable Situation Very Unfavorable situation Summary of Fiedler’s Situational Variables and Their Preferred Leadership Styles

19. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-19 Leadership Actions to Change Situations (1 of 3) To modify leader-member relations: Request particular people for work in the group Effect transfers of particular subordinates out of the unit Volunteer to direct difficult or troublesome subordinates

20. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-20 Leadership Actions to Change Situations (2 of 3) To modify task structure: When possible bring new or unusual tasks or problems to the group Break jobs down into smaller subtasks that can be more highly structured

21. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-21 Leadership Actions to Change Situations (3 of 3) To modify position power: 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

22. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-22 Vroom-Jago Leadership Model: Assumptions of the Model (1 of 2) 1.The model should be of value to leaders or managers in determining which leadership styles they should use in various situations 2.No single leadership style is applicable to all situations 3.The main focus should be the problem to be solved and the situation in which the problem occurs

23. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-23 Vroom-Jago Leadership Model: Assumptions of the Model (2 of 2) 4.The leadership style used in one situation should not constrain the styles used in other situations 5.Several social processes influence the amount of participation by subordinates in problem solving

24. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-24 Vroom-Jago Leadership Model: Key Components of the Model 1.Specification of the criteria by which decision effectiveness is judged 2.A framework for describing specific leader behaviors or styles 3.Key diagnostic variables that describe important aspects of the leadership situation

25. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-25 Vroom-Jago Leadership Model (continued) Decision Effectiveness Decision quality Subordinate commitment Time considerations Decision Effectiveness Decision quality Subordinate commitment Time considerations Decision Styles Autocratic (A) Consultative (C) Group (G) Delegated (D) Decision Styles Autocratic (A) Consultative (C) Group (G) Delegated (D)

26. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-26 Vroom-Jago Leadership Model (continued) Diagnostic Procedure: Key Questions 1.How important is the technical quality of the decision? 2.How important is subordinate commitment to the decision? 3.Do you have sufficient information to make a high- quality decision? 4.Is the problem well structured?

27. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-27 Vroom-Jago Leadership Model (continued) Diagnostic Procedure: Key Questions (continued) 5.If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to the decision? 6.Do subordinates share the organizational goals to be attained in solving this problem? 7.Is conflict among subordinates over preferred solutions likely? 8.Do subordinates have sufficient information to make a high-quality decision?

28. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-28 Path-Goal Leadership Model (1 of 2) Leaders are effective because of their positive impact on followers’: Motivation Ability to perform Satisfaction Focuses on how the leader influences the followers’ perceptions of: Work goals Self-development goals Paths to goal attainment

29. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-29 Path-Goal Leadership Model (2 of 2) Styles of Leader Behavior Directive Supportive Participative Achievement-oriented Styles of Leader Behavior Directive Supportive Participative Achievement-oriented Situational Variables Personal characteristics of the subordinates Environmental pressures and demands Situational Variables Personal characteristics of the subordinates Environmental pressures and demands

30. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-30 Leader Effectiveness Categories of Leader Behaviors Clarifying paths Achievement oriented Being supportive Facilitating productive interaction Group decision making Networking Projecting values Employee Characteristics Ability Locus of control Need for clarity Need for achievement Experience Environmental Dimensions Task structure Work group dynamics Outcomes Increase employee confidence to achieve Clarify paths to desired rewards Establish challenging goals Utilize full range of talents of all group members Increase need satisfaction Improve work performance Reduce uncertainties Framework of Revised Path- Goal Leadership Perspective

31. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-31 Hersey-Blanchard Situational Leadership Theory (SLT) Emphasis is on followers and their level of maturity Leader must properly judge or intuitively know followers’ maturity level and then use a leadership style that fits the level Readiness – the followers’ skills and willingness to do a job

32. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-32 Hersey-Blanchard Situational Leadership Theory (SLT): Leadership Styles Telling. The leader defines the roles needed to do the job and tells followers what, where, how, and when to do the tasks Selling. The leader provides followers with structured instructions, but is also supportive Participating. The leader and followers share in decisions about how best to complete a high-quality job Delegating. The leader provides little specific, close direction or personal support to followers

33. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-33 R1 Unable Unwilling R2 Unable Willing R3 Able Unwilling R4 Able Willing Degree of follower’s readiness to assume personal responsibility: S1 Telling: Instructing and supervising S2 Selling: Explaining and clarifying S3 Participating: Sharing and facilitating S4 Delegating: Coaching and assisting Leadership behavior appropriate to the situation: Hersey-Blanchard Situational Leadership Model

34. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-34 Summary of Situational Leadership Models: Fiedler’s Contingency Model Leadership Qualities Assumptions About Followers Leader Effectiveness History of Research: problems Leaders are task- or relationship- oriented. The job should be engineered to fit the situational factors. Followers prefer different leadership styles depending on: task structure, leader-member relations, and position power Effectiveness of the leader is determined by the interaction of environment and personality factors. If investigations not affiliated with Fiedler are used, the evidence is contradictory on the accuracy of the model.

35. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-35 Summary of Situational Leadership Models: Vroom-Jago Leadership Model Leadership Qualities Assumptions About Followers Leader Effectiveness History of Research: problems Leaders make either individual or group decisions and can choose from five different styles. Followers participate in varying degrees in decisions involving problems. Effective leaders select the appropriate decision set and permit the optimal participation for followers. Research support for the model is mixed and limited. The model is considered by some to be complex even though computer program is available to trace decision ties used.

36. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-36 Summary of Situational Leadership Models: Path-Goal Model Leadership Qualities Assumptions About Followers Leader Effectiveness History of Research: problems Leaders can increase followers’ effectiveness by applying proper motivational techniques. Followers have different needs that must be fulfilled with the help of a leader. Effective leaders are those who clarify for followers the paths or behaviors that are best suited. Model has generated modest research interest in past two decades.

37. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-37 Summary of Situational Leadership Models: Hersey-Blanchard Situational Leadership Leadership Qualities Assumptions About Followers Leader Effectiveness History of Research: problems Leader must adapt style in terms of task behavior and relationship behavior on the basis of followers. Followers’ maturity (readiness) to take responsibility and ability to influence the leadership style that is adopted. Effective leaders are able to adapt directing, coaching, supporting, and delegating style to fit the followers’ levels of maturity. Not enough research is available to reach a definitive conclusion about the predictive power of the theory.

38. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-38 Charismatic Leadership The ability to influence followers based on a supernatural gift and attractive powers Charismatic leaders are those who have charismatic effects on their followers to an unusually high degree Followers enjoy being with the charismatic leader because they feel inspired, correct, and important

39. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-39 Charismatic Leadership: Two Types Visionary charismatic leaders – focus on the long term Through communication ability, links followers’ needs and goals to job or organizational long-term goals and possibilities Crisis-based charismatic leaders – focus on the short-term Have an impact when the system must handle a situation for which existing knowledge, resources, and procedures are not adequate

40. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-40 Attributes of Charismatic Leaders 1.Develop visionary thinking 2.Communicating the vision 3.Conviction 4.Extraordinary behaviors 5.Develop self-confidence 1.Develop visionary thinking 2.Communicating the vision 3.Conviction 4.Extraordinary behaviors 5.Develop self-confidence

41. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-41 Transactional Leadership (1 of 2) The leader helps the follower identify what must be done to accomplish the desired results The leader takes into consideration the person’s self-concept and esteem needs The transactional approach uses the path- goal concepts as its framework The leader relies on contingent reward and on management by exception

42. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-42 Transactional Leadership (2 of 2) When contingent reinforcement is used, followers exhibit an increase in performance and satisfaction Using management by exception, the leader won’t be involved unless objectives are not being accomplished Transactional leadership is not often found in organizational settings

43. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-43 L: Recognizes what F must do to attain designated outcomes L: Recognizes what F must do to attain designated outcomes L: Recognizes what F needs L: Recognizes what F needs L: Clarifies how F’s need fulfillment will be exchanged for enacting role to attain designated outcomes L: Clarifies how F’s need fulfillment will be exchanged for enacting role to attain designated outcomes F: Recognizes value of designated outcomes (need-fulfilling value for F) F: Recognizes value of designated outcomes (need-fulfilling value for F) L: Clarifies F’s Role F: Feels confidence in meeting role requirements (subjective probability of success) F: Feels confidence in meeting role requirements (subjective probability of success) F: Develops motivation to attain desired outcomes (expected effort) F: Develops motivation to attain desired outcomes (expected effort) Transactional Leadership L = Leader F = Follower

44. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-44 Transformational Leadership (1 of 2) Ability to inspire and motivate followers to achieve results greater than originally planned The leader’s vision provides the follower with motivation for hard work that is self- rewarding

45. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-45 Transformational Leadership (2 of 2) To achieve their vision, transformational leaders make major changes in the firm’s or unit’s: Mission Way of doing business Human resource management

46. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-46 Key Factors that Describe Transformational Leaders (1 of 2) Charisma. The leader is able to instill a sense of value, respect, pride and to articulate a vision Individual attention. The leader pays attention to followers’ needs and assigns meaningful projects so that followers grow personally Intellectual stimulation. The leader helps followers rethink rational ways to examine a situation. He encourages followers to be creative

47. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-47 Key Factors that Describe Transformational Leaders (2 of 2) Contingent reward. The leader informs followers about what must be done to receive the rewards they prefer Management by exception. The leader permits followers to work on the task and does not intervene unless goals are not being accomplished in a reasonable time and at a reasonable cost

48. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-48 Leader-Member Exchange (LMX) Approach (1 of 2) There is no consistent leader behavior across subordinates Each relationship has a uniqueness One-on-one relationships determine subordinates’ behaviors Classify subordinates into: In-group members Out-group members

49. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-49 Leader-Member Exchange (LMX) Approach (2 of 2) In-group members Share a common bond and value system Interact with the leader regularly Receive more challenging assignments and more meaningful rewards Are more positive about the organization and have higher job performance and satisfaction In-group members Share a common bond and value system Interact with the leader regularly Receive more challenging assignments and more meaningful rewards Are more positive about the organization and have higher job performance and satisfaction Out-group members Have less in common with the leader Have limited interactions with the leader Receive less challenging work and little positive reinforcement Become bored and often quit Out-group members Have less in common with the leader Have limited interactions with the leader Receive less challenging work and little positive reinforcement Become bored and often quit

50. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-50 Coaching The everyday interaction of helping another employee improve his or her understanding of the work improve performance Coaches possess skills, experience, and ability that leaders display The essence of coaching and leading is to be creative and look for positives

51. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-51 Multicultural Leadership A leader in a specific national culture may need to apply various attitudes and behaviors to exercise the right blend of influence to accomplish relevant goal achievement Leadership attributes associated with effective leadership results vary across cultures

52. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-52 Cross-Cultural Factors Linked to Leadership Effectiveness: (1 of 2) 1.Preferred awareness (willingness to be aware of others’ feelings) 2.Actual awareness (actual understanding of oneself and others) 3.Submissiveness (to rules and authority) 4.Reliance on others (in problem solving)

53. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-53 Cross-Cultural Factors Linked to Leadership Effectiveness: (2 of 2) 5.Favoring of group decision making 6.Concern for human relations 7.Cooperative peer relations

54. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-54 Substitutes for Leadership (1 of 2) Leadership substitutes are factors that render leadership unnecessary or even impossible They negate the leader’s ability to either increase or decrease follower satisfaction or performance

55. McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved. 15-55 Substitutes for Leadership (2 of 2) Substitutes for leadership can include: cohesive work groups intrinsically satisfying tasks high levels of subordinate ability, experience, and knowledge