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Michael A. Hitt

C. Chet Miller

Adrienne Colella

Chapter 8 LeadershipLeadership

Slides by Ralph R. Braithwaite

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Cathy Benko at Deloitte Cathy Benko at Deloitte ConsultingConsulting

Cathy Benko • What are your reactions to Cathy Benko’s story?

• What are your thoughts about her quote at the end of the section?

“Life is not fair. Not everybody starts at the same place or has the same opportunities and support someone else might have. Don’t spend time wondering why you’re in the position you’re in. Just get out there and do as well as you can …”

Exploring Behavior in Action

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The Strategic Importance of The Strategic Importance of LeadershipLeadership

• Is there a link between leadership and organizational performance?

• Do organizations do enough to develop leadership skills?

• Strategic leadership involves developing a vision, empowering associates, building relationships, and building and maintaining a high-involvement, high-performance workforce.

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Knowledge ObjectivesKnowledge Objectives1. Define leadership and distinguish between formal and

informal leaders.

2. Explain the trait concept of leadership.

3. Describe major behavioral theories of leadership and compare and contrast them.

4. Explain contingency theories of leadership and how they relate leadership effectiveness to situational factors.

5. Describe transformational leaders.

6. Discuss topics of current relevance, including leader-member exchange, servant leadership, gender effects on leadership, and global differences in leadership.

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The Nature of LeadershipThe Nature of LeadershipThe process of providing general direction and influencing individuals or groups to achieve goals.

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Effective LeadersEffective Leaders

Warren Bennis

Effective leaders are concerned with “doing the right things” rather than “doing things right.” The right things are:

• Creating and communicating a vision of what the organization should be

• Communicating with and gaining support of multiple constituencies

• Persisting in the desired direction

• Creating the appropriate culture and obtaining the desired results

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Trait Theory of LeadershipTrait Theory of LeadershipConcept that certain traits help make people effective leaders. Early research suggested that the traits fell into three categories:

PhysicalPhysicalCharacteristicsCharacteristics

PersonalityPersonalityCharacteristicsCharacteristics

AbilitiesAbilities

Some CriticismSome Criticism

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Traits Associated with Traits Associated with LeadershipLeadership

Energy InsightfulnessAppearance IntegrityIntelligence PersistenceJudgment Self-confidenceVerbal fluency Sense of humorAchievement drive Tolerance for stressAdaptability Interpersonal skillsAggressiveness PrestigeEnthusiasm Extroversion TactInitiative

Adapted from Exhibit 8-1: Common Traits Associated with Leadership

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Six Core Traits of LeadershipSix Core Traits of Leadership

DriveDrive LeadershipLeadershipMotivationMotivation IntegrityIntegrity

Self-Self-ConfidenceConfidence

CognitiveCognitiveAbilityAbility

KnowledgeKnowledgeof theof the

DomainDomain

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Reforming a “Rotten Apple”Reforming a “Rotten Apple”What are your thoughts regarding the leadership traits of Police Commissioner William Bratton?

What are your thoughts regarding the changes he made that earned him the “Police Executive of the 20th Century” award and his face on the cover of Time?

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CharismaCharismaJohn F. Kennedy Adolf Hitler Winston Churchill Eleanor Roosevelt

Martin Luther King, Jr. Ronald Reagan Barbara Jordan

Charismatic leaders inspire

their followers to change their needs and

values, follow visionary quests, and sacrifice their

own personal interestsfor the good of

the cause.

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Behavioral Theories of Behavioral Theories of LeadershipLeadership

University of University of Michigan StudiesMichigan Studies

Ohio StateOhio StateUniversity StudiesUniversity Studies

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University of Michigan StudiesUniversity of Michigan Studies

• Job-Centered Leadership Style

• Employee tasks

• Methods for accomplishment

• Employee-Centered Leadership Style

• Employees’ personal needs

• Development of interpersonal relationships

Rensis Likert

Daniel Katz Robert Kahn

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Ohio State University StudiesOhio State University Studies• Consideration• Leaders express friendship

• Develop mutual trust and respect

• Strong interpersonal relationships with staff

• Initiating Structure• Well defined patterns of organization and

communication

• Define procedures

• Delineate relationships with staff

• Emphasize goals and deadlines

• Assign tasks and identify performanceexpectations

Edwin Fleishman

Ralph Stogdill

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Behavioral Theories of Behavioral Theories of LeadershipLeadership

Adapted from Exhibit 8-2: Comparison of Consideration and Initiating Structure with Employee-Centered and Job-Centered Concepts

D

B

Initiating Structure

Co

ns

ide

rati

on

High

High

Low

A(Employee-Centered Style)

C(Job-Centered Style)

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Contingency Theories of Contingency Theories of LeadershipLeadership

Fiedler’s Theory Path-Goal Theory

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Fiedler’s Contingency Fiedler’s Contingency Theory of LeadershipTheory of Leadership

• Effectiveness depends on leader’sbehavioral style and the situation

• Leader style measured by the LPC (least preferred co-worker) scale

• Situational favorableness assessed by three things:

Fred Fiedler

Leader-memberrelations

Task structure Position power

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Fiedler’s LPC ScaleFiedler’s LPC Scale• Esteem for Least Preferred Co-Worker

Cooperative Uncooperative___:___:___:___:___:___:___:___

8 7 6 5 4 3 2 1

Friendly Unfriendly___:___:___:___:___:___:___:___

8 7 6 5 4 3 2 1

• Low LPC Score• Negative adjectives

• Task-oriented leader (task achievement needs first)

• High LPC Score• More positive adjectives

• Relationship-oriented leader (interpersonal relationship needs first)

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Situational CharacteristicsSituational Characteristics• Leader-Member Relations• The degree to which a leader is respected,

accepted, and had friendly interpersonal relationships with followers

• Task Structure• The degree to which tasks are broken down into

easily understood steps or parts

• Position Power• The degree to which a leader can reward, punish,

promote, or demote individuals in the unit or organization

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Fiedler’s Contingency Theory Fiedler’s Contingency Theory of Leadership Effectivenessof Leadership Effectiveness

Adapted from Exhibit 8-3: Fiedler’s Contingency Model of Leadership Effectiveness

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Path-Goal Leadership TheoryPath-Goal Leadership Theory

LeadershipStyle

ContingencyFactors

Outcomes

Martin Evans Robert House

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Leader EffectivenessLeader EffectivenessLeadership can effect employees’ expectancies and valences in several ways:

• Assign tasks that have high value (valence)

• Support employees’ efforts (effort → performance expectancy)

• Tie rewards to goal accomplishment (performance→reward instrumentality)

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• Directive Leadership

• Supportive Leadership

• Achievement-Oriented Leadership

• Participative Leadership

• Directive Leadership

• Supportive Leadership

• Achievement-Oriented Leadership

• Participative Leadership

Path-Goal Leadership TheoryPath-Goal Leadership Theory

Leader BehaviorsLeader Behaviors

• Subordinate Characteristics

• Work Environment Characteristics

• Subordinate Characteristics

• Work Environment Characteristics

Situational FactorsSituational Factors

Effectiveness of leader behavior depends on these situational factors

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Interaction of Leader Behavior Interaction of Leader Behavior and Situational Factorsand Situational Factors

Locus ofLocus ofControlControl

Need forNeed forAffiliationAffiliation

Need forNeed forSecuritySecurity

Participative, DirectiveParticipative, Directiveor Supportive Leadersor Supportive Leaders

Need forNeed forGrowthGrowth

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Interaction of Leader Behavior Interaction of Leader Behavior and Situational Factorsand Situational Factors

Adapted from Exhibit 8-4: Interaction of Leader Behavior and Situational Factors

Characteristics of the Work Environment

Subordinate Characteristics

Effective Leader Behaviors

Situational Factors

Internal locus of control

External locus of control

High need for affiliation

High need for security

High growth need

Strengths

Low growth need

High growth needLow growth need

Structured task

Unstructured task

Complex task

Complex task

Simple taskSimple task

Supportive

Directive

Participative/ Achievement oriented

Directive

Supportive

Participative

Directive

Supportive

Directive

Supportive

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ManagerialAdvice

Phil Jackson and Phil Jackson and Leadership SuccessLeadership Success

Phil Jackson

In terms of leadership, this means treating everyone with the same care and respect you give yourself – and trying to understand their reality without judgment. When we can do that, we begin to see that we all share human struggles, desires, and dreams.

• What are your thoughts about this quote?

• Have you ever worked for a leader who approached the job like this?

• Does the leadership style one uses need to change based on each situation? Why?

• When would a leader want to be “invisible”?

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Transactional LeadershipTransactional LeadershipA leadership approach that is based on the exchange relationship between followers and leaders. It is characterized by contingent behavior and active management-by-exception behavior.

It is the degree to which leaders provide what followers want in response to good performance.

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Four Characteristics of Four Characteristics of Transactional LeadersTransactional Leaders

• Understand what followers want to receive from their work, and attempt to give them what they desire, contingent on performance

• Clarify links between performance and reward

• Exchange rewards and promises of rewards for specified performance levels

• Respond to the interests of followers only if the followers are performing satisfactorily

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Transactional LeadershipTransactional LeadershipContingent Reward Behavior

• Clarify performance expectations

• Reward followers when expectations are met

Active Management-by-Exception Behavior

• Clarifies minimal performance standards

• Punishes when standards are not met

Consistently MonitorsPerformance

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Transformational LeadershipTransformational LeadershipA leadership approach that involves motivating followers to do more than expected, to continuously develop and grow, to increase self-confidence, and to place the interests of the unit or organization before their own.Involves charisma, intellectual stimulation, and individual consideration.

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Transformational Leaders Do Transformational Leaders Do Three ThingsThree Things

Increase followers awareness of the importance of pursuing a vision or mission and the strategy required

Encourage followers to place the interests of the unit, organization, or larger collective before their own personal interests

Raise followers’ aspirations so they continuously try to develop and improve themselves while striving for higher levels of accomplishment

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CharacteristicsCharacteristics

Charisma

IntellectualStimulation

IndividualConsideration

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Charismatic LeadersCharismatic Leaders

Charisma

• Inspire emotion and passion in followers

• Get followers to identify with the leader

• Display confidence

• Communicate and live up to organizational values

• Optimistic and enthusiastic

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Intellectual Intellectual StimulationStimulation

IntellectualStimulation

• Increase the followers’ focus on problems and develop new ways to solve them

• Reexamine assumptions

• Seek out different views

• Work to be innovative

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Individual ConsiderationIndividual Consideration

IndividualConsideration

• Support and develop followers to improve self-confidence and a desire to improve performance

• Provide individualized attention to followers

• Focus on followers’ strengths

• Act as teachers and coaches

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Common BehaviorsCommon Behaviors• Articulate clear, appealing vision

• Communicate the vision

• Delegate significant authority and responsibility

• Eliminate unnecessary bureaucratic restraints

• Provide coaching, training and developmental experiences

• Encourage open sharing of ideas and concerns

• Encourage participative decision making

• Promote cooperation and teamwork

• Modify structure to promote key values and objectives

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Laissez-Faire LeadershipLaissez-Faire Leadership• Opposite approach to transformational leadership

• Not proactive

• React only to failures or chronic problems

• Avoid making decisions

• Often absent or uninvolved in followers’ activities

• Typically do not have positive outcomes

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Commander AbrashoffCommander Abrashoff

USS Benfold

D. Michael Abrashoff

• Demonstrated confidence

• Focused on the vision

• Linked tasks to the vision

• Went beyond self-interest

• Created intellectual stimulation

• Displayed individual consideration

• Would you want to work for someone like Abrashoff? Why or why not?

• Would his approach work in most work environments? Why or why not?

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Some ConclusionsSome Conclusions• Leaders can be trained to exhibit

transformational leadership behaviors

• Leaders can display both transformational and transactional leadership styles

• Both transformational and transactional leadership can be positive

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The EffectsThe Effects

Adapted from Exhibit 8-5: The Effects of Transformational and Transactional Leadership

TransformationalLeadership

Transactional Leadership

CharismaIntellectual StimulationIndividual Consideration

Contingent Reward BehaviorActive Management by

Exception

Outcomes

Individual OutcomesUnit/Organization Outcomes

Dynamism of the task/organizational

environment

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Ethical Leadership? Authentic Ethical Leadership? Authentic Leadership!Leadership!

Dennis Kozlowski

Thoughts?

8-42ExperiencingStrategic OB

Ethical Leadership? Authentic Ethical Leadership? Authentic Leadership!Leadership!

Ken Lay Jeff Skilling Andrew Fastow

Thoughts?

8-43ExperiencingStrategic OB

Ethical Leadership? Authentic Ethical Leadership? Authentic Leadership!Leadership!

Martha Stewart

Samuel Waksal Ryan Brant

Thoughts?Thoughts?

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Authentic LeadersAuthentic Leaders• Guided by values that focus on doing

what’s right for their constituencies

• Try to act in accordance with their values

• Remain transparent

• “Walk the talk”

• Place equal weight on getting the task accomplished and developing associates

• Continuously develop themselves

• Have developed values and personal strengths they need to deal with ambiguous ethical issues

Thoughts?

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Leader-Member Exchange (LMX)Leader-Member Exchange (LMX)• Different relationships with different followers

– not all are treated the same

• High level of contribution is a factor

• Similarity to the leader is a factor

• Two groups - an In-group and an Out-group

• Mutual trust and support

• Levels of satisfaction

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Leader-Member Exchange (LMX)Leader-Member Exchange (LMX)

Leader

Exchange

Follower

In Group

Out Group

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Servant LeadershipServant Leadership

• Valuing individuals

• Developing people

• Building community

• Conceptualizing

• Exhibiting foresight

• Displaying wisdom

• Desire to serve others

Max De PreeFormer CEO of Herman Miller

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Gender Effects on LeadershipGender Effects on LeadershipDo women lead differently than men?

Structural-cultural model of leader behavior

Socialization model

Both women and men may be effective leaders when style matches the situation

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Global DifferencesGlobal Differences• Anglo cluster (ideal leader)

• Charismatic influence and inspiration, encouraging participation

• Diplomatic, delegating authority, allowing everyone to have their say

• Arabic cluster (ideal leader)

• Need to balance paradoxical set of expectations

• Expected not to differentiate themselves from others and have modest styles and

• Expected to have great deal of power and control, and to direct most decisions and actions

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Global DifferencesGlobal Differences• Germanic cluster (ideal leader)

• Charismatic

• Highly team-oriented

• Participative

• Southern Asia cluster (ideal leader)

• Humane, participative, and charismatic

• Expected to be benevolent while maintaining a strong position of authority

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The Strategic LensThe Strategic Lens

• How should leaders approach individuals, units, and organizations suffering from poor performance?

• Why is ethical leadership often of utmost importance to various shareholders?

• Should women and men lead in different ways?

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QuestionsQuestions