2. Leadership Chapter Fourteen Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e

3. 14-3 After reading the material in this chapter, you should be able to: Review trait theory research, and discuss the takeaways from both the trait and behavioral theories of leadership. Explain, according to Fiedler’s contingency model, how leadership style interacts with situational control. Discuss House’s revised path-goal theory and Hersey and Blanchard’s situational leadership theory.

4. 14-4 After reading the material in this chapter, you should be able to: Describe the difference between transactional and transformational leadership and discuss how transformational leadership transforms followers and work groups. Explain the leader-member exchange (LMX) model of leadership and the concept of shared leadership. Review the principles of servant leadership and discuss Level 5 leadership.

5. 14-5 What Does Leadership Involve? Leadership – influencing employees to voluntarily pursue organizational goals

6. 14-6 Trait Theory Leader trait - personal characteristics that differentiate leaders from followers. Leadership prototype - mental representations of the traits and behaviors possessed by leaders.

7. 14-7 Gender and Leadership Men and women were seen as displaying more task and social leadership, respectively Women used a more democratic or participative style than men and men used a more autocratic and directive style than women

8. 14-8 Gender and Leadership Men and women were equally assertive Women executives, when rated by their peers, managers, and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria

9. 14-9 Key Positive Leadership Traits

10. 14-10 Behavioral Styles Theory The Ohio State Studies identified two critical dimensions of leader behavior. -Consideration: creating mutual respect and trust with followers. -Initiating structure: organizing and defining what group members should be doing.

11. 14-11 Peter Drucker’s Tips for Improving Leadership Effectiveness 1.Determine what needs to be done. 2.Determine the right thing to do for the welfare of the entire enterprise or organization. 3.Develop action plans that specify desired results, probable restraints, future revisions, check-in points, and implications for how one should spend his or her time. 4.Take responsibility for decisions.

12. 14-12 Peter Drucker’s Tips for Improving Leadership Effectiveness 5.Take responsibility for communicating action plans and give people the information they need to get the job done. 6.Focus on opportunities rather than problems. 7.Run productive meetings. 8.Think and say “we” rather than “I”. 9.Listen first, speak last.

13. 14-13 Takeaways from Behavioral Styles Theory Leader behaviors can be systematically improved and developed. There is no one best style of leadership. It is important to consider the difference between how frequently and how effectively managers exhibit various leader behaviors.

14. 14-14 Situational Theories Situational theories - propose that leader styles should match the situation at hand.

15. 14-15 Fiedler’s Contingency Model The performance of a leader depends on two interrelated factors: The degree to which the situation gives the leader control and influence The leader’s basic motivation

16. 14-16 Question? What refers to the amount of influence the leader has in his immediate work environment? A.Contingency control B.Situational control C.Conditional influence D.Position power

17. 14-17 Fiedler’s Contingency Model Situational control – refers to the amount of control and influence the leader has in his immediate work environment

18. 14-18 Three Dimensions of Situational Control Leader-member relations – the extent to which the leader has the support, loyalty, and trust of the work group Task structure – concerned with the amount of structure contained within tasks performed by the work group Position power – the degree to which the leader has formal power to reward, punish, or otherwise obtain compliance from employees

19. 14-19 Representation of Fiedler’s Contingency Model Figure 14-1

20. 14-20 Path-Goal Theory Describes how leadership effectiveness is influenced by the interaction between four leadership styles – directive, supportive, participative, achievement-oriented Contingency factors – variables that influence the appropriateness of a leadership style

21. 14-21 Path-Goal Theory Reformulated Three key changes: 1.Leadership is more complex and involves a greater variety of leader behavior. 2.The role of intrinsic motivation and empowerment in influencing leadership effectiveness 3.Shared leadership

22. 14-22 A General Representation of House’s Revised Path-Goal Theory Figure 14-2

23. 14-23 Categories of Leader Behavior

24. 14-24 Hershey and Blanchard’s Situational Leadership Model Effective leader behavior depends on the readiness level of a leader’s followers. Readiness – follower’s ability and willingness to complete a task

25. 14-25 Situational Leadership Model Figure 14-3

26. 14-26 Transactional Leadership Transactional leadership - focuses on the clarifying employees’ roles and providing rewards contingent on performance.

27. 14-27 Transformational Leadership Transformational leadership - transforms employees to pursue organizational goals over self-interests.

28. 14-28 Question? Which transformational leader behavior encourages employees to question the status quo? A.Inspirational motivation B.Idealized influence C.Individualized consideration D.Intellectual stimulation

29. 14-29 Transformational Leader Behaviors Inspirational motivation – establishing an attractive vision of the future, the use of emotional arguments, and exhibition of optimism and enthusiasm Idealized influence – sacrificing for the good of the group, being a role model, and displaying high ethical standards

30. 14-30 Transformational Leader Behaviors Individualized consideration – providing support, encouragement, empowerment, and coaching to employees Intellectual stimulation – behavior that encourages employees to question the status quo and to seek innovative solutions to organizational problems

31. 14-31 A Transformational Model of Leadership Figure 14-4

32. 14-32 Maintaining Ethical Transformational Leadership 1.Create and enforce a clearly stated code of ethics. 2.Recruiting, selecting, and promoting people who display ethical behavior. 3.Develop performance expectations around the treatment of employees. 4.Train employees to value diversity. 5.Identify, reward, and publicly praise employees who exemplify high moral conduct.

33. 14-33 The Leader-Member Exchange (LMX) Model of Leadership Focuses on the quality of relationships between managers and subordinates as opposed to the behaviors or traits of either leaders or followers. Assumes that leaders develop unique one- on-one relationships with direct reports.

34. 14-34 The Leader-Member Exchange (LMX) Model of Leadership in-group exchange - a partnership characterized by mutual trust, respect and liking out-group exchange - a partnership characterized by a lack of mutual trust, respect and liking

35. 14-35 Managerial Implications Leaders are encouraged to establish high- performance expectations for all of their direct reports. Managers should be careful that they don’t create a homogeneous work environment.

36. 14-36 Shared Leadership Shared leadership - simultaneous, ongoing, mutual influence process in which people share responsibility for leading

37. 14-37 Shared Leadership Table 14-3

38. 14-38 Servant Leadership Servant leadership - focuses on increasing services to others rather than oneself Read the Servant Leader newsletter

39. 14-39 Characteristics of the Servant-Leader

40. 14-40 The Level 5 Hierarchy Figure 14-5

41. 14-41 Video: Martha Stewart In the accompanying supplementary video “Martha Stewart and Celebrity CEOs” (5:09), the impact of celebrities as leaders is examined.