Leadership in Organizations

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Leadership in Organizations

• Ch. 8 9

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What is Leadership?
Think of good leaders and poor leaders. What
distinguishes them?
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What leaders have to say about leadership
Glory is fleeting but obscurity lasts forever.

We are all worms, but I think I am a glow worm.
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What leaders have to say about leadership

• Leadership is the ability to get men to do what
  they dont like to do and like it.

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What leaders have to say about leadership
The people who are doing the work are the
moving force behind the Macintosh. My job is to
create a space for them, to clear out the rest
of the organization and keep it at bay.
It would have been tough to anticipate all the
issues, so we went to market and revved on the
fly. Sometimes you are delighted, sometimes you
are surprised, and sometimes you are horrified.
. . . What's the worst thing that can happen?
You fail."
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What leaders have to say about leadership

• The wicked leader is he who the people despise.
• The good leader is he who the people revere.
• The great leader is he who the people say,
• we did it ourselves.
• - Lao-Tzu,
• 6th Century Chinese
• Philosopher and Founder of
• Taoism

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Defining Leadership

• Persuading others to set aside for a period of
  time their own concerns and pursue a common goal
  that is important for the responsibilities and
  welfare of the group (Homan)
• Ability to anticipate, envision, maintain
  flexibility, think strategically, and work with
  others to initiate changes that will create a
  viable future for the organization ((Ireland
  Hitt, on strategic leadership)

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Defining Leadership (More!)

• Process of developing ideas and a vision, living
  by values that support those ideas and that
  vision, influencing others that embrace them in
  their own behaviors, and making hard decisions
  about human and other resources
• --Hellriegel Slocum

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What Leaders Do

• Leaders can shed light or impose darkness
• Leaders deal with change while managers deal with
  complexity (Kotter)
• Leaders focus on ideas, vision, values,
  influencing others, and making tough decisions

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Does leadership make a difference?

• Consider estimates of managerial incompetence
• According to ratings by subordinates, the base
  rate for managerial incompetence in US is between
  60 and 75 (Hogan, 1990)
• Failure rate among senior management in the
  1980s was 50 (DeVries, 1992)
• Common complaints unwillingness to exercise
  authority and tyrannizing subordinates

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How should we examine leadership?

• What are the personal and situational variables
  that affect ones leadership style?
• 2. What impact does ones leadership style have
  on organizational processes and outcomes?

Personal Leader and Situational Variables
Leadership Style Organizational Processes and
Outcomes
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What personal leader variables affect ones
leadership style?

• Personal variables
• Traits, competencies, values
• Power sources
• Situational variables
• Demands, constraints, and opportunities for
  discretion or choice

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What are some personal variables?

• Personality traits
• Past experiences in leading others
• Implicit theories (cognitive schema) of
  leadership
• Self concept and ones important social
  identities
• Role modeling (scripts) of other leaders
• Personal power sources

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More Personal Variables

• Cognitive intelligence (technical and conceptual
  competencies)
• Emotional intelligence (interpersonal
  competencies)
• Needs (achievement, power, affiliation) and
  interests
• Perceptual biases and information processing
  capacity and methods

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Personality Traits Associated with Successful
Leadership

• Adaptable
• Alert to ones social environment (open)
• Ambitious and achievement oriented
• Assertive
• Decisive
• Maturity and breadth

• Conscientious
• Dominant/Extroverted
• Energetic
• Persistent
• Self-confident
• Tolerant of stress
• Willing to assume responsibility
• Integrity

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Power Sources of Leaders
Reward Power
Coercive Power
Legitimate Power
Expert Power
Referent Power
Milgrams Obedience Experiments
Personal Power Inventory p. 231
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Use of Influence in Leading Others

Zones of Influence
Leadership
Preferred
Indifferent
Legitimate
Influence
Non-influence
Prof. Richard Scholl
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Political Behavior

• Attempts by individuals to influence the
  behaviors of others and the course of events in
  the organization in order to protect their
  self-interests, meet their own needs, and advance
  their own goals.
• Organizational Politics
• Actions by individuals, teams, or leaders to
  acquire, develop, and use power and other
  resources in order to obtain preferred outcomes

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What Drives Political Behavior in Organizations?

• Disagreements over goals
• Different ideas about the organization and its
  problems
• Different information about the situation
• Need to allocate scarce resources
• Decision-making procedures and performance
  measures are uncertain and complex
• Reward system that fosters it

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Situational Variables that Affect Leadership

• Micro Situation
• Immediate work setting
• Macro Situation
• Larger organizational factors

Constraints
Choices
Demands
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Micro situational factors

• Role expectations/demands of others and conflicts
  among these
• Task performance pressures or responsibilities
• Followers competencies, needs, maturity levels,
  experiences
• Work rules and regulations
• Positional authority

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Macro Situational Variables

• Organizational Design
• Bureaucratic vs. Entrepreneurial
• Level of Management
• Top, middle, lower
• Technology
• Workflow Interdependencies
• Functional area
• Finance vs. marketing

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More Macro Variables

• External coordination needs or boundary
  spanning needs
• Organizational culture and politics
• Organizational life cycle stage
• Crises
• Stakeholder demands
• Cross cultural demands

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What impact does ones style have on
organizational processes and outcomes?

• Style Pattern of behaviors that one engages in
  to influence others in goal achievement
• Does a person have one style or can he/she
  develop a variety of styles?

Personal Leader and Situational Variables
Leadership Style Organizational Processes and
Outcomes
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What kinds of leadership styles can individuals
enact?

• Focus on task vs. focus on people (initiating
  structure or consideration)
• Autocratic vs. delegation decision styles
• Transactional vs. transformational leadership
  styles
• Authenticity and Charisma

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Focus on Task vs. People

• Task
• (Initiating Structure)
• Provide direction
• Structure work
• Monitor information
• Set deadlines
• Getting resources

• People
• (Consideration)
• Networking
• Developing and mentoring followers
• Supporting followers
• Managing conflicts
• Encouraging participation

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When to Focus on Task vs. People

• Task
• Pressure from somewhere other than leader
• Complexity of task
• Disorganization
• Low performance norms
• Crisis situation
• Inexperienced, immature, or uncommitted followers

• People
• Boring, dangerous, or stressful tasks
• Discouraged employees
• Process or teamwork problems
• Want input
• Few status differences

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Decision Styles

• Autocratic
• Consultative
• Participative
• Delegation

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Situational Leadership Model

• The style of leadership (task vs. relationship)
  should be matched to the level of readiness of
  the followers

• Follower readiness
• Ability to set high but attainable task-related
  goals
• and a willingness to accept responsibility for
  reaching them

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Use of Styles in Situational Leadership Model

• Delegating Style

• Telling Style

Low Rel High Task
Use when follower readiness is high (Able and
willing or confident)
Use when follower readiness is low (Unable and
unwilling or insecure)
Low Rel Low Task

• Participating Style

• Selling Style

High Rel High Task
Use when follower readiness is moderately
high (Able but unwilling or insecure)
Use when follower readiness is moderately
low (Unable but willing or confident)
High Rel Low Task
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Vroom-Jago Time-Driven Leadership Model
Prescribes a leaders choice(s) among five
leadership styles based on seven situational
factors, recognizing the time requirements and
costs associated with each style
Five Core Leadership Styles

• Decide Style

• Consult Individually Style

• Consult Group Style

• Facilitate Style

• Delegate Style

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Situational Variables in Vroom-Jago Time-Driven
Leadership Model

• Decision significance
• Importance of Commitment
• Leader expertise
• Likelihood of commitment
• Team support
• Team expertise
• Team competence

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Vroom-Jago Time-Driven Leadership Model
Note Dashed line ( ) Means not a factor.
Decision Significance
Importance of Commitment
LeaderExpertise
Likelihood of Commitment
Team Support
Team Expertise
Team Competence
H
Decide








Delegate
H
H
L
H
H
L
Consult Group
L
L
Facilitate
H
H
H
L
H
H
L
Consult Individually
Problem Statement
L
L
H
Facilitate
H
H
H
L
L
Consult Group
L
L
Decide
H
Facilitate
H
H
H
L
L
L
L
Consult Individually
L
H
Decide
H
H
Delegate
L
L
Facilitate
L
L
Decide
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Transactional Leadership Styles

• Reliance on positional power bases such as formal
  authority, control of rewards and punishments,
  and centrality in networks to influence people

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Example of Transactional Leadership Behaviors

• Setting clear behavioral expectations and
  outcomes
• Providing valued rewards contingent on behavior
• Providing equitable treatment based on different
  input/outcome ratios
• Works well with extrinsically-motivated
  individuals

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Transformational Leadership Styles

• Reliance on personal characteristics such as
  expertise, charisma, attractiveness, effort,
  reputation
• Tap into follower value system or influence them
  to take on leader values

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Model of Transformational Leadership
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Examples of Transformational Behaviors

• Reinforcing followers self concepts
• Continually raising performance levels
• Focus on continuous improvement and success vs.
  focus on failure/mistakes
• Leader modeling appropriate behavior and making
  sacrifices
• Being consistent in words and deeds
• Publicly defending and recognizing followers
• Create and reinforce clear cultural values

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Model of Authentic Leadership
Source Based on Avolio, B.J., Gardner, W.L.,
Walumbwa, F.O., Luthans, F., and May, D.R.
Unlocking the mask A look at the process by
which authentic leaders impact follower attitudes
and behaviors. Leadership Quarterly, 2004, 15,
801-823.
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Implications for Leaders

• Influence followers attitudes and behaviors
  through identification, hope, trust, positive
  emotions, and optimism.

• Knows oneselfstrengths and limitations

• Ethics and open communication are central

• Focus on being a servant to followers and other
  stakeholders

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Model of Charismatic Leadership
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Charismatic Leaders

• Gain power because their followers identify with
  them

• Rare in business

• Communication competency is critical

• Socialized charismatic leaderpossesses an
  egalitarian and empowering personality

• Personalized charismatic leaderpossesses a
  dominant Machiavellian, and self-centered
  personality

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What impact does ones style have on
organizational processes?

• What processes are affected directly by
  leadership?
• Setting direction for others
• Building culture
• Information exchange
• Training and motivation
• Organizing and coordinating work
• Role clarification and assignment

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What impact does ones style have on processes?

• Processes (cont.)
• Provision of resources
• Coordination with other groups/units
• Building teams
• Making decisions and ensuring implementation
• Managing conflicts

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What impact does ones style have on
organizational outcomes?

• Outcomes may be affected by variables other than
  leadership
• Outcomes may be indirect effects of leadership
• Examples profitability, goal accomplishment,
  efficiency, financial and market measures,
  stakeholder satisfaction, survival of the firm,
  adaptation

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Summary of Leadership Styles

• Different leadership styles are effective under
  different conditions
• Best leaders have a full repertoire of styles and
  know when to use them
• In some situations, leadership is irrelevant and
  redundant (subordinate characteristics, task
  characteristics, and organizational systems
  substitute for leadership