Chapter 11

LEADERSHIP.mp4 - Google Drive

LEADER.mp4 - Google Drive
Leadership and Influence Processes

Activity
(4 elements of
Management Leadership
leadership)
Creating an Planning and budgeting: Establishing direction:
agenda Establishing detailed steps Developing a vision of
and timetables for the future, often the
achieving needed results distant future, and
and allocating the strategies for producing
resources necessary to the changes needed to
make those needed achieve that vision
results happen

Developing Organizing and staffing: Aligning people:

a human Establishing some Communicating the
network structure for direction by words and
The Nature of Leadership for accomplishing plan deeds to everyone
achieving requirements, staffing that whose cooperation may
“[Leadership is] a game of pinball, and you’re the ball.” the agenda structure with individuals, be needed to influence
delegating responsibility the creation of teams
—U.S. Senator John McCain and authority for carrying and coalitions that
out the plan, providing understand the visions
The Meaning of Leadership policies and procedures to and strategies and
help guide people, and accept their validity
Leadership creating methods or
systems to monitor
As a process, the implementation

- use more persuasion, influence, and motivation Executing Controlling and problem Motivating and
toward goals plans solving: Monitoring inspiring: Energizing
- have vision of what organization can become results versus planning in people to overcome
some detail, identifying major political,
- use of noncoercive influence to shape the group’s deviations, and then bureaucratic, and
or organization’s goals planning and organizing to resource barriers by
solve these problems satisfying very basic, but
- motivate behavior toward the achievement of often unfulfilled, human
those goals, needs
- help define group or organizational culture;
Outcomes Produces a degree of Produces change, often
predictability and order to a dramatic degree,
As a property, the
and has the potential to and has the potential to
- set of characteristics attributed to individuals who produce consistently produce extremely
are perceived to be leaders major results expected by useful change (for
various stakeholders (for example, new products
example, for customers, that customers want, or
Leaders
always being on time; or, new approaches to
- People who can influence the behaviors of others for stockholders, being on labor relations that help
without having to rely on force budget) make a firm more
competitive)
- people whom others accept as leaders
Leadership – create change
Distinctions Between Management and Leadership Management – achieve orderly results
- John Kotter
Management in conjunction with leadership can produce
orderly change, and

Leadership in conjunction with management can keep the

organization properly aligned with its environment.
 Leadership Traits Approach

Leadership and Power - First organized approach to studying leadership

analyzed the personal, psychological, and physical
Power
traits of strong leaders.
The ability to affect the behavior of others
 Assumed that a basic set of personal traits that
In organizational settings, there are usually five kinds
differentiated leaders from non-leaders could
of power:
be used to identify leaders and predict who
would become leaders.

- Researchers thought that leadership traits might include

intelligence, assertiveness, above-average height,
good vocabulary, attractiveness, self-confidence,
and similar attributes.

 The trait approach was unsuccessful in

establishing empirical relationships between
 Legitimate power traits and persons regarded as leaders.
- Power granted through the organizational Early Leadership Theories
hierarchy; the power defined by the organization
to be accorded to people occupying a particular Trait Theories (1920s-30s)
position
- Assumed that a basic set of personal traits that
 Reward power differentiated leaders from non-leaders could be used
to identify and predict who would become leaders.
- The power to give or withhold rewards, such as
salary increases, bonuses, promotions, praise, - Personal - Intelligence, Assertiveness, Self-
recognition, and interesting job assignments - Psychological Confidence
- Physical - Above-Average height,
 Coercive power Attractiveness
- Good vocabulary
- The power to force compliance by means of
psychological, emotional, or physical threat - Later research on the leadership process identified
seven traits associated with successful leadership:
 Referent power
Drive
- The personal power that accrues to someone - Leaders exhibit a high effort level. They have a
based on identification, imitation, loyalty, or relatively high desire for achievement; they are
charisma ambitious; they have a lot of energy; they are
- Abstract tirelessly persistent in their activities; and they
show initiative
 Expert power
Desire to lead
- The personal power that accrues to someone
- Leaders have a strong desire to influence and lead
based on the information or expertise that they
others. They demonstrated the willingness to take
possess
responsibility

Honesty and integrity

Generic Approached to Leadership
- Leaders build trusting relationship between
- Early approaches to the study of leadership adopted themselves and followers by being truthful or non-
what might be called a universal or generic perspective. deceitful and by showing high consistency between
word and deed
- They assumed that there was one set of answers to
the leadership puzzle.
 Self-confidence have their own decision to do
- Followers look to leaders for an absence of self- - there is no supervision, he leaves everything to
doubt. Leaders, therefore, need to show self- employees
confidence in order to convince followers of the
- Research findings: mixed results
rightness of their goals and decisions.
- No specific styles was consistently better for producing
Intelligence better performance
- Leaders need to be intelligent enough to gather, - Employees were more satisfied under a democratic
synthesize, and interpret large amounts of leader than an autocratic leader.
information, and they need to be able to create
visions, solve problems, and make correct
decisions. Leadership Behaviors Approach
Job-relevant knowledge
- Effective leaders have a high degree of knowledge
about the company, industry, and technical
matters. In-depth knowledge allows leaders to
make well-informed decisions and to understand
the implications of those decisions.

Extraversion
- Leaders are energetic, lively people. They are
sociable, assertive, and rarely silent or withdrawn.  Assumed that effective leaders somehow behaved
differently from ineffective leaders.
- behaviors or actions of leaders
Leadership Behaviors Studies
Michigan Studies (Rensis Likert)
- To investigate other variables, especially the behaviors
– Identified two forms of leader behavior
or actions of leaders. * Based on extensive interviews with both leaders (managers)
- The new hypothesis was that effective leaders and followers (subordinates)
somehow behaved differently from less effective
Job-centered behavior (rigid and bureaucratic)
leaders
—managers who pay close attention to
University of Iowa Studies (Kurt Lewin)
subordinates’ work, explain work procedures,
–Identified three leadership styles:
and are keenly interested in performance.
Autocratic Style - is consistent with the System 1 design
- Centralized authority, low participation - main focus is the accomplishment of the task
(authority is fully practice by the leader alone; and attainment of the goal
centralization type)
Employee-centered behavior (organic and flexible)
Democratic Style
—managers who focus on the development of
- involvement, high participation, feedback
cohesive work groups and employee satisfaction.
(more likely to be the decentralization type in
- is consistent with the System 4 design
which there is a participation and involvement of
- Their primary concern is the welfare of subordinates
the subordinates and managers ask for their ideas
(more attentive in satisfying to how employees work)
and feedbacks)
- managers tries to consult with its team and uses – The two forms of leader behaviors were considered to
participation styles and ask for feedback be at opposite ends of the same continuum.

Laissez faire style: hands-off management He argued that employee-centered leader behavior generally
- managers leave everything to employee, there is tends to be more effective.
••••••••• •••••••• •••••••••
no supervision and subordinates and employees
When Likert advocates moving organizations from The Managerial Grid
System 1 to System 4, he is also advocating a transition - provides a means for evaluating leadership styles
from job- to employee-centered leader behavior. and then training managers to move toward an ideal
style of behavior.

Ohio State Studies

Did not interpret leader behavior as being one-

dimensional as did the Michigan State studies; each
behavior was assumed to be independent of the other.

- extensive questionnaire surveys conducted

Identified two basic leadership styles that can be

exhibited simultaneously:

1. Initiating-structure behavior

— - The behavior of leaders who define the leader–

subordinate role so that everyone knows what is
expected,
- establish formal lines of communication, and
- determine how tasks will be performed
- the leader emphasizes distinction between a Concern for production (horizontal axis)
leader and its subordinates - deals with the job and task aspects of leader
- more formal communication & sets agenda behavior
- (similar to job-centered and initiating-structure
2. Consideration behavior
behaviors)
— The behavior of leaders who show concern for
Concern for people (vertical axis)
subordinates and attempt to establish a warm,
- deals with the human aspects of leader behavior
friendly, and supportive climate.
- (similar to employee-centered and consideration
behaviors)

Initial assumption was that the most effective leaders

who exhibit high levels of both behaviors. Subsequent Five extremes of managerial behavior:
research indicated that:
1,1 manager (impoverished management)
 Employees of supervisors ranked high on - who exhibits minimal concern for both production
initiating structure were high performers, yet and people;
they expressed low levels of satisfaction and - Exertion of minimum effort to get required work
higher absenteeism. done is appropriate to sustain organization
membership.
 Employees of supervisors ranked high on
consideration had low- performance ratings, yet 9,1 manager (authority-compliance)
they had high levels of satisfaction and less - who is highly concerned about production but
absenteeism. exhibits little concern for people;
- Efficiency in operations results from arranging
 Other situational variables make consistent conditions of work in such a way that human
leader behavior predictions difficult. There is no elements interfere to a minimum degree.
universal or “one best way” model of
leadership. 1,9 manager (country club management)
- who is little concerned about production but
exhibits highly concern for people
 - who has exactly opposite concerns from the 9,1 the person with whom he or she is able to work least
manager; well (the least-preferred coworker, or LPC)
- comfortable, friendly organization

5,5 manager (middle-of-the-road management)

- who maintains adequate concern for both people
and production;
- Adequate organization performance is possible
through balancing the necessity to get out work
with maintaining morale of people at a satisfactory
level.
- higher numbers are associated with positive
9,9 manager (team management)
qualities (helpful, relaxed, and interesting),
- who exhibits maximum concern for both people
- negative qualities (frustrating, tense, and boring)
and production.
have low point values.
- interdependence through a “common stake” in
organization purpose leads to relationships of trust
and respect. Favorableness of the Situation
According to this approach, the ideal style of - the key situational factor, Fiedler
managerial behavior is 9,9. Contingency variables determining situational
Situational Approaches to Leadership favorableness:

Assume that: Leader-member relations

- the nature of the relationship between the leader
 Appropriate leader behavior varies from one and the work group.
situation to another. - If the leader and the group have a high degree of
 Key situational factors that are interacting to mutual trust, respect, and confidence, and if they like
determine appropriate leader behavior can be one another, relations are assumed to be good.
identified. Task structure
1. Least-Preferred Co-worker (LPC) theory - Fred Fiedler - the degree to which the group’s task is well defined.
- The task is structured when it is routine, easily
A theory of leadership that suggests that the understood, and unambiguous and when the group
appropriate style of leadership varies with situational has standard procedures and precedents to rely on.
favorableness. (from leader’s viewpoint)
Position Power
 The first truly situational theory of leadership. - the power vested in the leader’s position.
- If the leader has the power to assign work and to
- Beginning with a combined trait and behavioral
reward and punish employees, position power is
approach
assumed to be strong.
Fiedler identified two styles of leadership: * position power is not as important as task structure
and leader–member relations.
- task oriented
(analogous to job-centered and initiating-
structure behaviors)
Favorableness and Leader Style
- relationship oriented - the favorableness of various situations to leader style
(similar to employee-centered and and the effectiveness of the group
consideration behaviors). - When the situation is most and least favorable,
Fiedler found that a task-oriented leader is most
 LPC measure
effective.
- the measuring scale that asks leaders to describe
- When the situation is only moderately favorable, a Associated most closely with Martin Evans and Robert
relationship-oriented leader is predicted to be most House—is a direct extension of the expectancy theory
effective. of motivation

-the leader should be able to make his relation - A theory of leadership suggesting that the primary
favorable, he has to build trust and relationship in functions of a leader are:
order to motivate them -- to make valued or desired rewards available in the
workplace and
- Fiedler found that a task-oriented leader is most
-- to clarify for the subordinate the kinds of behavior
effective.
that will lead to those rewards
- When the situation is only moderately favorable, a
relationship-oriented leader is predicted to be most PGT: Situational Factors (Environmental Characteristics)
effective.
Task structure
- When structure is high, directive leadership is
Flexibility of Leader Style less effective.
- Fiedler argued that, leader style is essentially fixed
Formal authority system
and cannot be changed;
- The higher the degree of formality, the less
- leaders cannot change their behavior to fit a
directive is the leader behavior accepted by
particular situation because it is linked to their
subordinates.
particular personality traits
- when a leader’s style and the situation do not Nature of workgroup
match, situation should be changed to fit the - When the workgroup provides employees with
leader’s style support and satisfaction, supportive leader is less
critical.
- the leader can make the elements of the situation
more congruent
- by structuring the task (by developing guidelines and
procedures, for instance) and Leader Behaviors:
- increasing power (by requesting additional authority  Directive leader behavior
or by other means).
letting subordinates know what is expected of them,
giving guidance and direction, and scheduling work.

 Supportive leader behavior

being friendly and approachable, having concern for

subordinate welfare, and treating subordinates as
equals.

 Participative leader behavior

Fiedler’s LPC theory
consulting with subordinates, soliciting suggestions, and
- attacked on the grounds
allowing participation in decision making.
- not always supported by research
- findings are subject to other interpretations  Achievement
- LPC measure lacks validity
- his assumptions about the inflexibility of leader oriented leader behavior setting challenging goals,
behavior are unrealistic. expecting subordinates to perform at high levels,
encouraging and showing confidence in
subordinates.
2. Path-Goal Theory
Situational Factors
Work Leadersh Impact on Expected Results
 Situation ip Style Followers - A person with an internal locus of control may
Follower Supporti Increases self- Increased effort. prefer participative leadership, whereas a person
lacks self- ve confidence to Job satisfaction,
confidence complete task and performance; with an external locus of control may prefer
fewer grievances directive leadership.
Lack of job Achieve Encourages Improved
challenge ment- setting high but performance and Environmental characteristics of the workplace
oriented attainable goals greater include factors outside the subordinates’ control.
satisfaction; less
turnover 1. Task structure
Improper Participa Clarifies Improved
procedures tive follower need performance and - is one such factor. When structure is high,
and poor for making greater directive leadership is less effective
decisions suggestions and satisfaction; less
involvement turnover (Subordinates do not usually need their boss to
Ambiguous Directive Clarifies path to Improved continually tell them how to do an extremely
job get rewards performance and
job satisfaction routine job, need a supportive leadership)

2. The formal authority system

Appropriate leadership depends on: - the higher the degree of formality, the less
directive is the leader behavior that will be
Personal characteristics of subordinates accepted by subordinate
Subordinates’ perception of their own abilities 3. The nature of the work group
- Lacking: directive leadership style
- When the work group provides the employee
- Managers can do little or nothing to influence with social support and satisfaction, supportive
the personal characteristics of subordinates, but leader behavior is less critical.
they can shape the environment to take
advantage of these personal characteristics by, - When social support and satisfaction cannot be
for example, providing rewards and structuring derived from the group, the worker may look to
tasks. the leader for this support.

- If people perceive that they are lacking in

abilities, they may prefer directive leadership to The Path-Goal Framework
help them understand path-goal relationships
better. If they perceive themselves to have a lot
of abilities, employees may resent directive
leadership.

Locus of control
- Internal locus of control – participative leadership
style
- External locus of control – directive leadership
style
- The path-goal theory of leadership suggests that
- Locus of control is a personality trait
managers can use four types of leader behavior to
- People who have an internal locus of control clarify subordinates’ paths to goal attainment. Both
believe that what happens to them is a function personal characteristics of the subordinate and
of their own efforts and behavior. Those who environmental characteristics within the organization
have an external locus of control assume that must be taken into account when determining which
fate, luck, or “the system” determines what style of leadership will work best for a particular
happens to them. situation.
 Consult (individually)
3. Vroom’s Decision Tree Approach —manager presents program to group members
- proposed by Victor Vroom and Philip Yetton individually, obtains their suggestions, then makes
- revised and expanded by Vroom and Arthur Jago the decision.

- Model attempts to prescribe a leadership style Consult (group)

appropriate to a given situation. —manager presents problem to group at a
meeting, gets their suggestions, then makes the
- Basic assumptions:
decision.
- Subordinate participation in decision making
depends on the characteristics of the situation Facilitate
Predicts what kinds of situations call for different —manager presents the problem to the group,
degrees of group participation defines the problem and its boundaries, and then
facilitates group member discussion as they make
Same leader may display different leadership styles the decision.

Basic Premises Delegate

—manager allows the group to define for itself the
 The degree to which subordinates should be
exact nature and parameters of the problem and
encouraged to participate in decision making
then develop a solution.
depends on the characteristics of the situation.
Evaluation and Implications
 No one decision-making process is best for all
- Because Vroom’s current approach is relatively
situations.
new, it has not been fully scientifically tested. The
After evaluating the different problem attributes, a original model and its subsequent refinement,
leader can choose a decision path on one of two however, attracted a great deal of attention and
decision trees that determines the decision style and were generally supported by research.
specifies the amount of employee participation.
- For example, there is some support for the idea
Decision significance that individuals who make decisions consistent with
- The degree to which the decision will have an the predictions of the model are more effective than
impact on the organization. Subordinates are those who make decisions inconsistent with it. The
involved when decision significance is high. model, therefore, appears to be a tool that
- extremely important and has major impact, high managers can apply with it.
significance
- routine, low significance

Decision Timeliness
- The degree of time pressure for making a decision
in a timely basis; may preclude involving
subordinates.

Decision-Making Styles
- represent different levels of subordinate participation
that the manager should attempt to adopt in a given
situation

Decide (alone)
—manager makes decision alone and then
announces or “sells” it to the group.
4. The Leader-Member Exchange (LMX) Approach Characteristics that Substitute for Leadership
- conceived by George Graen and Fred Dansereau, Subordinate Task Organization
- stresses the importance of variable relationships Ability
.
Routineness
.
Formalization
.

between supervisors and each of their subordinates. Experience

.
The availability of Group cohesion
.

Need for feedback Inflexibility

Stresses that leaders have different kinds of
.
.

independence
.
Intrinsic A rigid reward
relationships with different subordinates Professional satisfaction structure
orientation
Vertical Dyads Indifference
.

- Leaders from unique independent relationships towards

with each subordinate (dyads) in which the organizational
goals
subordinate becomes a member of the leader’s out-
group or in-group.
Organizational characteristics that may substitute for
The Leader–Member Exchange Model
leadership include
- formalization
- group cohesion
- inflexibility, and a
- rigid reward structure

Charismatic Leadership
- Assumes that charisma is an individual
characteristic of the leader

Charisma
- The LMX model suggests that leaders form unique - A form of interpersonal attraction that inspires
independent relationships with each of their subordinates.
support and acceptance
- a key factor in the nature of this relationship is whether the
>FACTS
individual subordinate is in the leader’s out-group or in-
group. *Robert House theory suggests that charismatic leaders
are likely to have a lot of self-confidence, a firm conviction in
In-group their beliefs and ideals, and a strong need to influence
- small number of trusted subordinates people. They also tend to communicate high expectations
about follower performance and express confidence in
- receives special duties requiring responsibility and
followers.
autonomy; they may also receive special privileges
•Donald Trump is an excellent example of a charismatic
Out-group leader.
- receive less of the supervisor’s time and attention
Charismatics
~~~~~~~~~~~~~~ - more successful
- self confidents leaders
Related Approaches to Leadership
- have a firm conviction in their belief and ideals
Substitutes for Leadership *Possess as strong need to influence people
- A concept that identifies situations in which leader
Three elements of charismatic leadership in
behaviors are neutralized or replaced by
organizations today
characteristics of the subordinate, the task, and the
organization 1. First, the leader needs to be able to envision the
future, set high expectations, and model
behaviors consistent with meeting those
expectations.

2. Next, the charismatic leader must be able to

energize others through a demonstration of
 personal excitement, personal confidence, and lead change in the organization to achieve and
patterns of success. maintain a superior alignment between the
organization and its environment.
3. Finally, the charismatic leader enables others by
- Its board of directors, of course, is a key element in
supporting them, empathizing with them, and
any firm’s strategic leadership
expressing confidence in them.
- To be effective in this role, a manager needs to
Transformational Leadership have a thorough and complete understanding of the
- Leadership that goes beyond ordinary expectations organization’s history, its culture, its strengths, and
by its weaknesses
- transmitting a sense of mission, - The strategic leader works to improve both the
- stimulating learning experiences, and current alignment and the future alignment
- inspiring new ways of thinking
2. Cross-Cultural Leadership
- Culture is used as a broad concept to encompass
both international differences and diversity-based
differences within one culture.
- Cross-cultural factors play a growing role in
organizations as their workforces become more and
more diverse.

3. Ethical Leadership
- Most people have long assumed that top managers
are ethical people. But in the wake of recent
corporate scandals, faith in top managers has been
shaken. Perhaps now more than ever, high standards
of ethical conduct are being held up as a prerequisite
Key to Successful Leadership
for effective leadership.
- Trusting in subordinates
- Involves providing a strong corporate governance
- Keeping cool
model to the organization that reflects the high
- Being an expert
ethical standards of its leaders. Requires holding
- Simplifying things
those who lead the organization accountable for
- Inviting dissent
their actions and the consequences of their action
- Encouraging risk
- More specifically, top managers are being called on
- Developing a vision
to maintain high ethical standards for their own
Suggestions for Building Trust conduct, to exhibit ethical behavior unfailingly, and
- Practice openness to hold others in their organization to the same
- Be fair standards.
- Speak your feelings
~~~~~~~~~~~~~~
- Tell the truth
- Show consistency Political Behavior in Organizations
- Fulfill your promises
Political Behavior
- Maintain confidence
- Demonstrate competence The activities carried out for the specific purpose of
acquiring, developing, and using power and other
~~~~~~~~~~~~~~
resources to obtain one’s preferred outcomes
Emerging Approaches to Leadership - is tricky to approach in a rational and systematic way.

1. Strategic Leadership One early survey found that many managers believed that
- The capability to understand the complexities of politics influenced salary and hiring decisions in their firm.
both the organization and its environment and to
Common Political Behaviors - By making themselves look good, they think they are more
likely to receive rewards, to be given attractive job
assignments, and to receive promotions

-to boost their self-esteem

-compliments and respects
-acquire more power and control

Managing Political Behavior

 Be aware that even if actions are not politically

motivated, others may assume that they are.
Inducement
 Reduce the likelihood of subordinates engaging
- offering to give something to someone else in
in political behavior by providing them with
return for that person’s support.
autonomy, responsibility, challenge, and
- For example, a product manager might suggest to
feedback.
another product manager that she will put in a good word
with his boss if he supports a new marketing plan that she  Avoid using power to avoid charges of political
has developed. motivation.
Persuasion  Get disagreements and conflicts out in the open
- persuading others to support a goal on grounds so that subordinates have less opportunity to
that are objective and logical as well as subjective engage in political behavior.
and personal.
- which relies on both emotion and logic  Avoid covert behaviors that give the impression
- For instance, when one board member attempted to of political intent even if none exists
remove him from his position, he worked behind the
- The well-informed manager should not assume that
scenes to persuade the majority of board members to
political behavior does not exist or, worse yet,
allow him to stay on
attempt to eliminate it by issuing orders or
Creation of an obligation commands. Instead, the manager must recognize
- providing support for another person’s position that political behavior exists in virtually all
that obliges that person to return the favor at a organizations and that it cannot be ignored or
stamped out.
future date.
- For example, one manager might support a
recommendation made by another manager for a new - For example, a manager may be able to use his or
advertising campaign. Although he might really have no her political influence to stimulate a greater sense of
opinion on the new campaign, he might think that by social responsibility or to heighten awareness of the
going along, he is incurring a debt from the other manager ethical implications of a decision.
and will be able to “call in” that debt when he wants to
get something done and needs additional support.

Coercion
- using force to get one’s way.
- For example, a manager may threaten to withhold
support, rewards, or other resources as a way to influence
someone else. He reportedly belittled any board member
who dared question him, for example.

Impression management
- making a direct and intentional effort to enhance one’s
image in the eyes of others