Leadership Key Terms

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Leadership - Key Terms
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• Formal Leader A member of an organization
  who has the authority to influence others to
  achieve organizational goals.
• Informal Leader An organizational member
  with no formal authority, but who influences
  others.

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Video Profiles of Leaders

• Chainsaw Al Dunlap ruthless, ego maniac who
  finally gets fired at Sunbeam
• Herb Kelleher of SW Airlines old-fashioned
  kinda guy, but loves fun work
• Debra Kent at Ford new role model for leaders
  in a macho industry
• Pat Carrigan at GM interviewed by Tom Peters
  will use her for case discussion

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Approaches to Understanding Effective Leadership
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• Trait Approach
• Behavior Approach
• Fiedlers Contingency Model
• Path-Goal Theory
• Vroom and Yetton Model
• Leader-Member Exchange Theory

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Trait Theory
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• Intelligence
• Task-Relevant Knowledge
• Dominance
• Self-Confidence

• Energy/Activity Levels
• Tolerance for Stress
• Integrity and Honesty
• Emotional Maturity

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Trait Theory - Criticisms
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• For at least some traits, it is not clear which
  comes first, being in a leadership position or
  possessing the trait in question.
• The trait approach provides little guidance
  concerning what advice or training to give
  current or soon-to-be leaders.

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Leader Traits Old Vs. New Approaches to
Selecting Leaders

• 1. Which traits are critical?
• Old - universal set of traits
• New - may vary among jobs
• 2. How are traits chosen?
• Old - compare leader vs. followers
• New - job analysis of situation
• 3. How are traits assessed?
• Old - paper pencil tests, demographic factors
• New - simulations, e.g., in-basket, role play,
  group discussion, oral presentation, business
  games. (Its called The Assessment Center).

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Difference Between the Old vs. New Trait
(assessment center)

• Examples of old traits
• intelligence
• energy level
• height
• dominance
• self-esteem
• need for power achievement

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Difference Between the Old vs. New Trait
(assessment center)

• Examples of new traits
• planning organizing
• problem analysis decision-making
• oral written communication
• creativity
• developing subordinates
• sensitivity to others
• self-awareness
• initiative
• personal impact

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Accuracy of the New Trait /Assessment Center
(from ATT)

• Assessed as having high potential for promotions
• 64 got early promotions
• 36 did not (false positive)
• Assessed as having low potential for promotions
• 68 did not get promoted
• 32 did get promoted (false negative)

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Accuracy of the New Trait /Assessment Center
Method

• Existing method was 48 accurate
• New trait method was 64 accurate
• 64 is a 33 increase in accuracy compared to
  48. (IT WORKS!!)
• False Positive rate 36 vs. 25 for the PSA
  test (for prostate cancer)
• False Negative rate 32 vs. 40 for the PSA
  test

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The AT T Assessment Center

• Predictions were based on just 3 days of
  assessment exercises
• Predictions were kept secret from management (no
  self fulfilling prophecy)
• Follow-up was made 8 years later

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The Leader Behavior Approach
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• Consideration
  Behavior indicating that a leader trusts,
  respects, and values good relationships with
  followers.
• Initiating Structure
  Making sure that the work gets done.

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The OSU Leadership Research Studies
Initiating structure
High
Consideration
Low
High
Low
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The Leadership Grid Figure
High
9,9
1,9
9 8 7 6 5 4 3 2 1
Team Management
Country Club Management
5,5
Concern for People
Middle of the Road Management
Authority-Compliance
Impoverished Management
1,1
9,1
Low
High
1 2 3 4 5 6 7 8 9
Concern for Production
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Fiedlers Contingency Theory
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• Leader effectiveness is determined by (a)
  leadership style
  (b) by the situation
• Depending on the situation, a relationship-oriente
  d leadership style or a task-oriented leadership
  style is best.

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Fiedler's Situational Characteristics
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• Leader-Member Relations
  is it good or bad???
• Task Structure
  is it highly structured or not??
• Position Power
  do you have high or low formal power??

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FIGURE 12.2 Favorability of Situations for
Leading
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Pat Carrigan - GM Plant Manager

• 1. What is her style?
• 2. What are her followers like?
• 3. What are the important situational
  factors?
• 4. How does she affect motivation?
• 5. Would her style work elsewhere?

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Path-Goal Theory
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• Directive Behavior (initiating structure)
  clarifies expected performance
• Supportive Behavior (consideration) shows that
  you care about your people
• Participative Behavior gets involvement, which
  results in acceptance of decisions
• Achievement-Oriented Behavior e.g., setting
  tough goals, expressing confidence, having high
  expectations of others

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Vroom and Yetton Model
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• A very specific model that matches leader style
  to the type of problem/decision.
• Leader style ranges from autocratic to
  democratic
• Situation 1.how important is getting
  high quality 2.how important is getting
  acceptance of decisions

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Leader-Member Exchange Theory
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• Different kinds of relationships may develop
  between a leader and a follower.
• What the leader and the follower give to and
  receive back from the relationship.

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FIGURE 12.4 Leader-Member Exchange Theory
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New Topics in Leadership Research
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• Transformational Leadership
• Charismatic Leader
• Transactional Leadership
• Leader Mood
• Gender and Leadership

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The Leadership Challenge Five Principles

• 1. Challenge the process
• 2. Enable others to act
• 3. Model the way
• 4. Inspire a shared vision
• 5. Encourage the heart