Ch10 Leadership Chapter

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Organizational Behavior

Week 7
Chapter 10:
Leadership
What is leadership?
• Leadership is the ability to influence a group toward
the achievement of a vision or set of goals.

© Pearson Education 2015


What is leadership?
• Leadership is the ability to influence a group toward
the achievement of a vision or set of goals.

o Nonsanctioned (i.e., informal)


leadership is often as
important or more important
than formal influence.

o Not all leaders are managers,


nor all managers are leaders.
© Pearson Education 2015
Leaders vs. Managers
• Strong leadership and strong management are needed
for optimal effectiveness.

• Challenge the status quo.


• Create visions of the future.
Leader • Inspire organizational members to want to
achieve the visions.

• Formulate detailed plans.


Manage • Create efficient organizational structures.
• Oversee day-to-day operations.
r

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Trait theories of leadership
• Trait theories of leadership focus on personal
qualities and characteristics.
o The search for personality, social, physical, or
intellectual attributes that differentiate leaders
from non-leaders goes back to the earliest stages of
leadership research.

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Leadership and The Big Five
• Most of the dozens of traits in various leadership
reviews fit under one of the Big Five, giving strong
support to traits as predictors of leadership.
• Good leaders:
o Like being around people.
o Are able to assert themselves (extraverted).
o Are disciplined and able to keep commitments
they make (conscientious).
o Are creative and flexible (open).

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Leadership and Emotional Intelligence
• Leaders high on EI tend to be effective.
• Because emphatic leaders:
o can understand the needs of the followers.
o listen to what followers say
o are able to read the reaction of others

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Trait theories: The two conclusions.
• Traits predict leadership and the research on the Big
Five seems to support this conclusion.
• Trait theories are better in predicting the emergence
of leaders and appearance of leadership than in
distinguishing effective leaders from ineffective ones.

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Behavioral theories of leadership
• We can train people to be leaders.
• Ohio State Studies found two behaviors that
accounted for most leadership behavior:
o Initiating structure – the extent to which a leader is
likely to define and structure his role and those of
employees in the search for goal attainment.
o Consideration – the extent to which a person’s job
relationships are characterized by mutual trust, respect
for employees’ ideas, and regard for their feelings.

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Behavioral theories of leadership
• University of Michigan’s objectives also identified
two behavioral types:
o The employee-oriented leader emphasized
interpersonal relationships by taking a personal
interest in the needs of employees and accepting
individual differences among them.
o The production-oriented leader emphasized the
technical or task aspects of the job, focusing on
accomplishing the group’s tasks.

© Pearson Education 2015


Summary of trait & behavioral theories
• Leaders who have certain traits and who display
consideration and structuring behaviors do appear to
be more effective.
• Traits and behaviors do not guarantee success.
• Context matters, too.

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Contingency theories of leadership
• The Fiedler contingency model
o A key factor in leadership success is the
individual’s leadership style.
• Least preferred co-worker (LPC)
questionnaire.
o Task or relationship oriented.
o Assumes leadership style is fixed.

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Contingency theories of leadership
• The Fiedler contingency model
o Defining the situation

• The degree of respect, trust, and


Leader-member confidence members have in their
relations leaders

• Whether or not job assignments are


Task structure structured

• The degree of influence a leaders has


Position power over power variables such as hiring,
firing, promotions, etc.
© Pearson Education 2015
Contingency theories of leadership
• Evaluation of the Fiedler model
o Considerable evidence to support at least
substantial parts of the model.
o Problems with the practical use of the model.
• Logic underlying the LPC is not well
understood.
• LPC scores are not stable.
• Contingency variables are complex and difficult
for practitioners to assess.

© Pearson Education 2015


Contingency theories of leadership
• Hersey and Blanchard’s Situational Theory
o Situational leadership theory (SLT) is a contingency theory
that focuses on the followers.
o Successful leadership is achieved by selecting the right
leadership style, which is contingent on the level of the
followers’ readiness.

Followers are willing to Followers are unwilling to


Followers are The leader does not need to The leader needs to use
able to do much supportive and
participative style
Followers are The leaders needs to display The leaders need to give
Unable to high task orientation clear and specific direction

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Contingency theories of leadership
• House’s Path-Goal Theory
o One of the most respected approaches to leadership.
o Contingency model of leadership that extracts key
elements from the Ohio State leadership research on
initiating structure and consideration and the
expectancy theory of motivation.
o Derived from belief that effective leaders clarify the
path to help followers achieve work goals.

© Pearson Education 2015


Contingency theories of leadership
• House’s Path-Goal Theory
Environmental
Contingency Factors
• Task structure
• Formal authority
systems
• Work group
Leader Behavior
• Directive Outcomes
• Achievement oriented • Performance
• Participative • Satisfaction
• Supportive
Personal
Characteristics
• Locus of control
• Experience
• Perceived ability
© Pearson Education 2015
Summary of contingency theories
• None of these theories were as successful as their
developers had hoped.
• One of the limitations pertains to ignoring the
followers
• Behavioral, traits, and contingency theories of
leadership ignores the effects of followers on leader-
member relationship.

© Pearson Education 2015


Leader-Member Exchange (LMX)
• Leaders form two groups: in-groups and out-groups and
develop close relations and trust with in-group members.

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Leader-Participation Model
• Developed by Vroom & Yetton
• This model relates leadership behavior and
participation in decision making.
• Argues that leader behavior must adjust to reflect the
task structure.
• Provides a decision tree of seven contingencies (e.g.,
importance of decision) and five leadership styles
(e.g., autocratic) for determining the form and
amount of participation in decision making.

© Pearson Education 2015


Inspirational Approaches to Leadership
• There are two main contemporary inspirational
leadership theories: charismatic and
transformational leaderships.
• These theories consider leaders as communicators.
• Leaders influence how others see and understand
events and inspire others to act beyond their
immediate self-interest.

© Pearson Education 2015


Charismatic Leadership
• States that followers make attributions of heroic or
extraordinary leadership abilities when they observe
certain behavior.
• What is charisma?

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Charismatic Leadership
• States that followers make attributions of heroic or
extraordinary leadership abilities when they observe
certain behavior.
• What is charisma?

© Pearson Education 2015


Charismatic Leadership
• The theory in its modern form was first coined by Robert
House whose research identified following characteristics
of charismatic leaders.

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Charismatic leaders, born or made?
• Some individuals are born with charismatic traits, others
are trained to exhibit charismatic behaviors.
o Develop the aura of charisma by maintaining an
optimistic view, using passion as a catalyst for
generating enthusiasm, and communicating with the
whole body, not just with words.
o Create a bond that inspires others to follow.
o Bring out the potential in followers by tapping into
their emotions.

© Pearson Education 2015


Charismatic Leadership
• How Charismatic Leaders Influence Followers?
o Articulating an appealing vision.
o Developing a vision statement.
o Establishing a new set of values.
o Conveying courage and conviction about the vision.
• Does It Depend on the Situation?
o People are especially receptive when they sense a
crisis, when they are under stress, or when they fear
for their lives.

© Pearson Education 2015


Charismatic Leadership
• The Dark Side of Charismatic Leadership
o Many leaders have allowed their personal goals to
override the goals of the organization.
• Individuals who are narcissistic are also higher
in some behaviors associated with charismatic
leadership.
o Some charismatic leaders are too successful at
convincing followers to pursue a vision that can be
disastrous.

© Pearson Education 2015


Transformational Leadership
• Transformational vs. transactional leaders
• Transformational leaders have a profound and
extraordinary effect on followers and inspire
followers to transcend their own self-interests.
• Transactional leaders guide or motivate their
followers in the direction of established goals by
clarifying role and task requirements.

© Pearson Education 2015


Transformational Leadership

© Pearson Education 2015


Transformational Leadership

© Pearson Education 2015


Transformational Leadership
• How Transformational Leadership Works
o Creativity – theirs and others.
o Decentralization of responsibility.
o Propensity to take risks.
o Encourage commitment on the part of followers.
o Instills in followers a greater sense of trust in the
leader.
o Increase follower self-efficacy, giving the group a
“can do” spirit.

© Pearson Education 2015


Transformational Leadership
• Evaluation of Transformational Leadership
o Transformational leadership has been supported at
diverse job levels and occupations, but isn’t
equally effective in all situations.
o Leads to higher motivation, satisfaction,
performance in followers and perceived
effectiveness of leaders.
o Transformational leadership is somewhat broader
than charismatic leadership.

© Pearson Education 2015


Authentic Leadership: Ethics and Trust
• What is Authentic Leadership?
o Authentic leaders:
• Know who they are.
• Know what they believe in and value.
• Act on those values and beliefs openly and
candidly.
o The result: people come to have faith in them and
consider them as ethical leaders.

© Pearson Education 2015


Authentic Leadership: Ethics and Trust
• Ethical Leadership
o Ethics touches on leadership at a number of
junctures.
o Efforts have been made to combine ethical and
charismatic leadership into an idea of socialized
charismatic leadership – leadership that conveys
other-centered values by leaders who model ethical
conduct.

© Pearson Education 2015


Authentic Leadership: Ethics and Trust
Servant Leadership
 Servant leaders go beyond their self-interest and
instead focus on opportunities to help followers
grow and develop.
Emphasize persuasion.
 Characteristic behaviors include listening,
empathizing, persuading, accepting stewardship,
and actively developing followers’ potential.
 Prophet Mohammed is a perfect example of a
servant leader.
© Pearson Education 2015
Authentic Leadership: Ethics and Trust
• Trust and Leadership
o Trust – a psychological state that exists when you
agree to make yourself vulnerable to another
because you have positive expectations about how
things are going to turn out.
• A primary attribute associated with leadership.
• When trust is broken, it can have serious
adverse effects on a group’s performance.

© Pearson Education 2015


Authentic Leadership: Ethics and Trust
• The three types of trust in organizational relationship

Deterrence- • Based on fear of reprisal if the rust is


based trust violated.

Knowledge- • Based on behavioral predictability that


based trust comes from a history of interaction.

• Based on mutual understanding of each


Identification- other’s intention and appreciation of
based trust each other’s wants and desires.
© Pearson Education 2015
Authentic Leadership: Ethics and Trust
• Basic principles of trust
Mistrust drives out trust
• A few mistrusting people can poison an entire organization.

Trust leads to trust


• Exhibiting trust in others tends to encourage more trust.

Trust can be regained


• Trust can be restored when individuals observe a consistent pattern
of trustworthy behavior

Mistrusting groups self-destruct


• Members of mistrusting groups tend to be suspicious each other

Mistrust generally reduces productivity


• Mistrust focuses attention on the differences in member interest

© Pearson Education 2015


Authentic Leadership: Ethics and Trust
• What Are the Consequences of Trust?
o Trust encourages taking risks. 
o Trust facilitates information sharing. 
o Trusting groups are more effective.
o Trust enhances productivity.

© Pearson Education 2015


Contemporary Leadership Roles
• Mentoring
o Mentor is a senior employee who sponsors and
supports a less-experienced employee, called a
protégé.
o Career functions
• Lobbying to get protégé challenging and visible
assignment, providing exposure to influential
individuals, and etc.
o Psychological functions
• Counseling the protégé to increase his/her self-
confidence, providing friendship and acceptance, and
etc.
© Pearson Education 2015
Contemporary Leadership Roles
• Self-leadership
o Indicates a set of process through which individuals
control their own behavior.
o Steps to engage in effective self-leadership
• Make your mental organizational chart horizontal
• Focus on influence rather than control
• Create your opportunities rather than wait for them.

© Pearson Education 2015


Contemporary Leadership Roles
• Online leadership
o Needs more research.
o Today’s managers and employees are increasingly
linked by networks rather than geographic
proximity.
• Online leaders have to think carefully about what actions
they want their digital messages to initiate.
• Identification-based trust is difficult to achieve without
face-to-face interaction.
• Writing skills are likely to become an extension of
interpersonal skills.

© Pearson Education 2015


Challenges to the leadership construct
• Leadership as Attribution
o leadership is merely an attribution people make
about other individuals.
o Extremely successful and extremely unsuccessful
organizational performance are attributed to
leadership.
o Projecting the appearance of being a leader rather
than the actual accomplishments of a leader is
considered to characterize effective leaders.
Challenges to the leadership construct
• Substitutes for and Neutralizers of Leadership

© Pearson Education 2015


Finding and Creating Effective Leaders
• Selecting Leaders
o Identifying effective leaders:
• Review specific requirements for the position.
• Consider personality tests to identify leadership
traits.
• Interviews to assess candidates’ previous
experience and leadership traits.
o Plan for a change in leadership.

© Pearson Education 2015


Finding and Creating Effective Leaders
• Training Leaders
o Leadership training is likely to be more successful with high
self-monitors.
o Teach implementation skills.
o Teach trust building, mentoring, and situational-analysis.
o Behavioral training through modeling exercises can increase
an individual’s charismatic leadership qualities.
o Review leadership after key organizational events.
o Train in transformational leadership skills.

© Pearson Education 2015


Global Implications
• The GLOBE study suggests there are international
differences in preference for initiating structure and
consideration.
o Based on the values of Brazilian employees, a U.S. manager
leading a team in Brazil would need to be team oriented,
participative, and humane.
o Employees in Egypt are more likely to value team-oriented
and participative leadership than US employees. They are
also more readily accept the status difference between
leaders and followers.
o How about the preference of Emirati employees? What
you think?
© Pearson Education 2015
Global Implications
• Leaders need to take culture into account whenever
they are managing employee from different cultures.
• Charismatic and transformational leadership styles are
generalizable across cultures.
• For leaders to have powerful and proactive vision,
strong motivational skills, and excellent planning
skills are important in all cultures.

© Pearson Education 2015


Managerial Implications
• For management positions, hire candidates who
exhibit transformational leadership qualities and who
have demonstrated vision and charisma.
• Tests and interviews can help you identify people with
leadership qualities.
• Hire candidates whom you believe are ethical and
trustworthy for management roles and train current
managers in your organization’s ethical standards in
order to increase leadership effectiveness.

© Pearson Education 2015


Managerial Implications
• Seek to develop trusting relationships with followers
because, as organizations have become less stable and
predictable, strong bonds of trust are replacing
bureaucratic rules in defining expectations and
relationships.
• Consider investing in leadership training such as
formal courses, workshops, rotating job
responsibilities, coaching, and mentoring.

© Pearson Education 2015


Group Exercise on Leadership
• First, as a group choose a leader whom you think
highly effective. (5 minutes)
o This leader can be a businessman, politician, sportsperson,
public figure, religious leader, etc. He or she can be alive or
dead.
• Think, discuss, and identify the characteristics, skills,
and abilities of the leader you chose. Among them list
top 5 abilities/skills/characteristics that—you think—
are most important. (10 minutes)

© Pearson Education 2015


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photocopying, recording, or otherwise, without the prior written permission of the
publisher. Printed in the United States of America.

Copyright © 2015 Pearson Education, Inc.  

© Pearson Education 2015

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