Leadership

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Leadership
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Leadership

• What is it?
• Hard to define
• We know it when we see it
• General Definition
• Social influence in an organizational setting,
  the effects of which are relevant to or have an
  impact on the achievement of organizational goals

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Leader Effectiveness

• How can we tell a good leader from a poor
  leader? (What results would we expect to see from
  a good leader?)
• Performance (the job gets done)
• Motivation (followers are energized)
• Effort (followers try hard)
• Satisfaction (followers are happy)

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Focus of Trait Approach
Personality Assessments
Leader

• Focuses exclusively on leader
• What traits leaders exhibit
• Who has these traits

• Organizations use personality assessments to
  find Right people
• Assumption - will increase organizational
  effectiveness
• Specify characteristics/traits for specific
  positions
• Personality assessment measures for fit

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Strengths

• Highlights leadership component in the leadership
  process
• Deeper level understanding of how
  leader/personality related to leadership process
• Provides benchmarks for what to look for in a
  leader

• Intuitively appealing
• Perception that leaders are different in that
  they possess special traits
• People need to view leaders as gifted
• Credibility due to a century of research support

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Criticisms

• Fails to delimit a definitive list of leadership
  traits
• Endless lists have emerged
• Doesnt take into account situational effects
• Leaders in one situation may not be leaders in
  another situation

• List of most important leadership traits is
  highly subjective
• Much subjective experience observations serve
  as basis for identified leadership traits
• Research fails to look at traits in relationship
  to leadership outcomes
• Not useful for training development

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Application

• Provides direction as to which traits are good to
  have if one aspires to a leadership position
• Through various tests and questionnaires,
  individuals can determine whether they have the
  select leadership traits and can pinpoint their
  strengths and weaknesses
• Can be used by managers to assess where they
  stand within their organization and what is
  needed to strengthen their position

• Leadership Traits
• Intelligence
• Self-Confidence
• Determination
• Integrity
• Sociability
• Adaptability

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Style Approach Description
Perspective
Definition

• Comprised of Two Kinds of Behaviors
• Task behaviors
• Facilitate goal accomplishment
• Relationship behaviors
• Help subordinates feel comfortable with
  themselves, each other, and the situation

• Leader-focused perspective
• Emphasis on what leaders do and how they act

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Style Approach
Focus
Overall Scope

• Primarily a framework for assessing leadership in
  a broad way as behavior with a task and
  relationship dimension

• Offers a means of generally assessing the
  behaviors of leaders

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Strengths

• Style Approach marked a major shift in leadership
  research from exclusively trait focused to
  include behaviors and actions of leaders
• Broad range of studies on leadership style
  validates and gives credibility to the basic
  tenets of the approach
• At conceptual level, a leaders style is composed
  of two major types of behaviors task and
  relationship
• Based on style approach, leaders can assess their
  actions and determine how to change to improve
  their leadership style

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Criticisms

• Research has not adequately demonstrated how
  leaders styles are associated with performance
  outcomes
• No universal style of leadership that could be
  effective in most situations
• Implies that the most effective leadership style
  is High-High style (i.e., high task/high
  relationship) research finding support is limited

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Leadership as Behavior

• 100s of studies examined the effects of leader
  behavior on employees.
• Results were mixed, inconclusive (Bass, 1990).
• Fleishman and Harris (1962) found that initiating
  structure was positively related to employee
  grievances and turnover.
• House, Filley, and Kerr (1971) found evidence
  suggesting initiating structure was positively
  related to employee satisfaction.

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Leadership as Behavior

• Fleischman Harris
• The effects of IS on grievances depends on
  Consideration
• The effects of both traits and behavior on leader
  effectiveness depends on the situation

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Contingency Theory Approach
Leaders match their style to the competence and
commitment of subordinates.
Perspective
Definition

• Contingency theory is a leader-match theory
  (Fiedler Chemers, 1974)
• Tries to match leaders to appropriate situations
• Leaders effectiveness depends on how well the
  leaders style fits the context
• Fiedler et al.s generalizations about which
  styles of leadership are best and worst are
  empirically grounded

• Effective leadership is contingent on matching a
  leaders style to the right setting

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Leadership Styles
Definition
Dimension Definitions

• Leadership styles are described as
• Task motivated
• Relationship motivated

• Task-motivated leaders -Concerned primarily with
  reaching a goal
• Relationship-motivated leaders - Concerned with
  developing close interpersonal
  relationships

Leader Style Measurement Scale
Least Preferred Co-Worker (LPC) Scale
High Relationship-motivated leader Low
Task-motivated leader
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Situational Variables
Situational Factors
Definition

• LMR - Refers to the group atmosphere and the
  degree of confidence, loyalty, and attraction of
  followers for leader
• TS - Concerns the degree to which requirements of
  a task are clear and spelled out
• PP - Designates the amount of authority a leader
  has to reward or punish followers

• Leader-Member Relations
• Task Structure
• Position Power

Determine Favorableness of Situations in
Organizations
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Contingency Model
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Strengths

• Empirical support. Contingency theory has been
  tested by many researchers and found to be a
  valid and reliable approach to explaining how to
  achieve effective leadership.
• Broadened understanding. Contingency theory has
  broadened the scope of leadership understanding
  from a focus on a single, best type of leadership
  (e.g., trait approach) to emphasizing the
  importance of a leaders style and the demands of
  different situations.
• Predictive. Because Contingency theory is
  predictive, it provides relevant information
  regarding the type of leadership that is most
  likely to be effective in particular contexts.
• Not an all-or-nothing approach. Contingency
  theory contends that leaders should not expect
  to be effective in every situation thus
  companies should strive to place leaders in
  optimal situations according to their leadership
  style.
• Leadership profiles. Contingency theory supplies
  data on leadership styles that could be useful to
  organizations in developing leadership profiles
  for human resource planning.

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Criticisms

• Fails to fully explain why leaders with
  particular leadership styles are more effective
  in some situations than others (Black Box
  problem)
• Criticism of LPC scale validity as it does not
  correlate well with other standard leadership
  measures
• Cumbersome to use in real-world settings
• Fails to adequately explain what should be done
  about a leader/situation mismatch in the
  workplace

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Path-Goal Theory Approach
Perspective
Definition

• Goal - To enhance employee performance and
  satisfaction by focusing on employee motivation
• Premise - Subordinates will be motivated if they
  believe (a) they are capable of performing their
  work (b) that their efforts will be rewarded
  and (c) that the payoff will be worthwhile
• Challenge - To use a leadership style that best
  meets subordinates motivational needs

• Path-goal theory centers on how leaders motivate
  subordinates to accomplish designated goals

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Conditions of Leadership Motivation
Leadership generates motivation when

• It increases the number and kinds of payoffs
• Path to the goal is clear and easily traveled
  with coaching and direction
• Obstacles and roadblocks are removed
• The work itself is personally satisfying

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Path-Goal Theory Approach
Focus
Overall Scope

• Path-goal theory is a complex but also pragmatic
  approach
• Leaders should choose a leadership style that
  best fits the needs of subordinates and their
  work

• Path-goal theory provides a set of assumptions
  about how different leadership styles will
  interact with subordinate characteristics and the
  work situation to affect employee motivation

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Situational Theories of Leadership

• Path-Goal Theory hypothesizes that effects of
  leader behavior on employee performance and
  satisfaction depend on how leader behavior
  affects employee motivation.

Directive - Providing guidelines on how to
perform tasks..  Supportive - demonstrating
concern for subordinates well being and must be
supportive of them as individuals.  Participative
- leader must solicit ideas and suggestions from
subordinates and directly invite their
participation.  Achievement - leader sets
challenging goals, emphasizing improvements in
work performance, and encouraging high levels of
goal attainment.  Effective leaders need all
four of these styles since each produces
different results. 
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Strengths

• Useful theoretical framework. Path-goal theory is
  a useful theoretical framework for understanding
  how various leadership behaviors affect the
  satisfaction of subordinates and their work
  performance.
• Integrates motivation. Path-goal theory attempts
  to integrate the motivation principles of
  expectancy theory into a theory of leadership.
• Practical model. Path-goal theory provides a
  practical model that underscores and highlights
  the important ways leaders help subordinates.

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Criticisms

• Interpreting the meaning of the theory can be
  confusing because it is so complex and
  incorporates so many different aspects of
  leadership consequently, it is difficult to
  implement.
• Empirical research studies have demonstrated only
  partial support for path-goal theory.
• It fails to adequately explain the relationship
  between leadership behavior and worker
  motivation.
• The path-goal theory approach treats leadership
  as a one-way event in which the leader affects
  the subordinate.

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Application

• PGT offers valuable insights that can be applied
  in ongoing settings to improve ones leadership.
• Informs leaders about when to be directive,
  supportive, participative, or achievement
  oriented
• The principles of PGT can be employed by leaders
  at all organizational levels and for all types of
  tasks

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Situational Theories of Leadership

• Vroom-Yetton Normative Model
• Leadership as decision making
• Decision-situation model
• Theorized that performance was affected by the
  process leaders use to make decisions

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Vroom-Yetton Normative Model

• Process used to make decision affects
• Decision quality
• Decision acceptance
• The effectiveness of any decision making process
  depends on several situational factors

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Decision Making Example

• You are the head of a personnel department which
  reports to the company president. The president
  has asked you to make recommendations on how to
  change and update the performance appraisal
  system. You are not sure about the approach to
  take. Your specialty is selection and you desire
  more information on performance appraisal.
  Fortunately, three members of your staff are
  experienced with the various aspects of
  performance appraisal. However, they rarely agree
  with each other on the best way to achieve
  something when it comes to performance appraisal.
  Fortunately, for this project, these employees
  will not implement the recommendations.

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Leadership as Power

• Agent exerts more influence on a target than a
  target can resist.
• Possible outcomes of using power
• Resistance
• Compliance
• Commitment

• Sources of Power
• Reward
• Coercive
• Legitimate
• Expert
• Referent

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Likely Outcomes of Using Power
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LMX Theory Approach Description
Perspective
Definition

• Development - LMX theory first described by
  Dansereau, Graen, Haga (1975), Graen Cashman
  (1975), and Graen (1976)
• Revisions - Theory has undergone a number of
  revisions since its inception and continues to be
  of interest to researchers
• Assumption - LMX theory challenges the assumption
  that leaders treat followers in a collective way.

• LMX theory conceptualizes leadership as a process
  centered in the interactions between leaders and
  followers.

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Later Studies

• Initial research primarily addressed differences
  between in-groups and out-groups later research
  addressed how LMX theory was related to
  organizational effectiveness
• Researchers (Graen Uhl-Bien, 1995) found that
  high-quality leader-member exchanges resulted in
• Less employee turnover
• More positive performance evaluations
• Higher frequency of promotions
• Greater organizational commitment
• More desirable work assignments
• Better job attitudes
• More attention and support from the leader
• Greater participation
• Faster career progress

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Phases in Leadership MakingGraen Uhl-Bien
(1995)
Phase 1
Phase 2
Phase 3
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Phase 1Graen Uhl-Bien (1995)
Phase 1
Stranger

• Interactions rule bound
• Rely on contractual relationships
• Relate to each other within prescribed
• organizational roles
• Experience lower quality exchanges
• Subordinate motives directed
• toward self-interest

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Phase 2Graen Uhl-Bien (1995)
Phase 2
Acquaintance

• Offer by leader/subordinate for improved
• career-oriented social exchanges
• Testing period of taking on new roles and
• leader providing new challenges
• Shift from formalized interactions to
• new ways of relating
• Quality of exchanges improve along with
• greater trust and respect
• Less focus on self-interest, more on goals of
• the group

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Phase 3Graen Uhl-Bien (1995)
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LMX Theory Approach
Descriptive
Prescriptive

• Essential to recognize existence of in-groups
  out-groups
• Significant differences in how goals are
  accomplished using in-groups vs. out-groups
• Relevant differences in in-group vs. out-group
  behaviors

• Best understood within the Leadership Making
  Model
• Leader forms special relationship with each
  subordinate
• Leader should offer each subordinate an
  opportunity for new roles/responsibilities
• Leader should nurture high-quality exchanges
  with all subordinates
• Rather than concentrating on differences, leader
  should focus on ways to build trust

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Strengths

• LMX theory validates our experience of how people
  within organizations relate to each other and the
  leader
• LMX theory is the only leadership approach that
  makes the dyadic relationship the centerpiece of
  the leadership process
• LMX theory directs our attention to the
  importance of communication
• Solid research foundation on how the practice of
  LMX theory is related to positive organizational
  outcomes

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Criticisms

• Inadvertently supports the development of
  privileged groups in the workplace appears
  unfair and discriminatory
• The basic theoretical ideas of LMX are not fully
  developed
• Because of various scales and levels of analysis,
  measurement of leader-member exchanges is being
  questioned

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Application

• Applicable to all levels of management and
  different types of organizations
• Directs managers to assess their leadership from
  a relationship perspective
• Sensitizes managers to how in-groups and
  out-groups develop within their work unit
• Can be used to explain how individuals create
  leadership networks throughout an organization

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Model of Transformational LeadershipBass (1985)
Transformational Leadership
Transactional Leadership
Laissez-Faire Leadership

• TL motivates followers beyond the expected by
• raising consciousness about the value and
  importance of specific and idealized goals
• transcending self-interest for the good of the
  organization
• addressing higher-level needs

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Transformational Leadership Factors
Factor 4 Individualized Consideration
Factor 6 Mgmt. by Exception Active
Passive Corrective Transactions
Lassiez-Faire
Transformational
Transactional

• Leaders who exhibit TL
• have a strong set of values ideals
• are effective in motivating followers to support
• greater good over self-interest

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Transformational Leadership FactorsThe 4 Is
Idealized Influence
Describes leaders who act as strong role models
for followers
Inspirational Motivation
Leaders who communicate high expectations to
followers, inspiring them through motivation to
commitment and engagement in the shared vision of
the organization
Intellectual Stimulation
Stimulates followers to be creative and
innovative challenges their own beliefs and
values and those of leader and organization
Individualized Consideration
Leaders who provide a supportive climate in which
they listen carefully to the needs of followers
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Transactional Leadership Factors
Contingent Reward
The exchange process between leaders and
followers in which effort by followers is
exchanged for specified rewards
Management by Exception

• Leadership that involves corrective criticism,
  negative feedback, and
• negative reinforcement
• Two forms
• Active - Watches follower closely to identify
  mistakes/rule violations
• Passive - Intervenes only after standards have
  not been met or
• problems have arisen

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Nonleadership Factor
Laissez-Faire
The absence of leadership. A hands-off,
let-things-ride approach. Refers to a leader who
abdicates responsibility, delays decisions, gives
no feedback, and makes little effort to help
followers satisfy their needs.
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Transformational Leadership Approach
Focus of Transformational Leaders
Overall Scope

• Describes how leaders can initiate, develop, and
  carry out significant changes in organizations

• TLs empower and nurture followers
• TLs stimulate change by becoming strong role
  models for followers
• TLs commonly create a vision
• TLs act as change agents
• TLs are social architects

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Strengths

• Broadly researched. TL has been widely
  researched, including a large body of qualitative
  research centering on prominent leaders and CEOs
  in major firms.
• Intuitive appeal. People are attracted to TL
  because it makes sense to them.
• Process-focused. TL treats leadership as a
  process occurring between followers and leaders.
• Expansive leadership view. TL provides a broader
  view of leadership that augments other leadership
  models.
• Emphasizes follower. TL emphasizes followers
  needs, values, and morals.
• Effectiveness. Evidence supports that TL is an
  effective form of leadership.

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Criticisms

• Lacks conceptual clarity
• Dimensions are not clearly delimited
• Parameters of TL overlap with similar
  conceptualizations of leadership
• Measurement questioned
• Validity of MLQ not fully established
• Some transformational factors are not unique
  solely to the transformational model
• TL treats leadership more as a personality trait
  or predisposition than a behavior that can be
  taught
• TL is elitist and antidemocratic
• Suffers from heroic leadership bias
• TL is based primarily on qualitative data
• Has the potential to be abused

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Application

• Provides a general way of thinking about
  leadership that stresses ideals, inspiration,
  innovations, and individual concerns
• Can be taught to individuals at all levels of the
  organization
• Able to positively impact a firms performance
• May be used as a tool in recruitment, selection,
  promotion, and training development
• Can be used to improve team development,
  decision-making groups, quality initiatives, and
  reorganizations
• The MLQ helps leaders to target areas of
  leadership improvement