Chapter 12

Leadership in Organizational Settings

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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The Leadership of Steve Jobs

During his life, Steve Jobs won

numerous awards for his

transformational and charismatic

leadership. The co-founder of

Apple, Inc. and Pixar animation

Studios was equally renowned as

a demanding perfectionist with

less-than-ideal people skills.

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Leadership Defined

Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members

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Shared Leadership

The view that leadership is broadly distributed, rather than assigned to one person, such that people within the team and organization lead each other. • Employees champion change, ideas, etc.

Shared leadership requirements:• Formal leaders willing to delegate power• Collaborative culture – employees support each

other• Employees able to influence others

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Leadership

Perspectives

Competency Perspective

Contingency Perspective

Implicit Leadership Perspective

Transformational Perspective

Perspectives of Leadership

Behavioral Perspective

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Competency Perspective

Personal characteristics that lead to superior performance in a leadership role

Several competencies now identified as key influences on leadership potential and of effective leaders

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Self-concept

Drive

• Positive self-evaluation• High self-esteem and self-efficacy• Internal locus of control

• Inner motivation to pursue goals• Inquisitiveness, action-oriented

Integrity• Truthfulness• Consistency in words and actions

Personality• Extroversion, conscientiousness

(and other personality dimensions)

Eight Leadership Competencies

more

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Cognitive/ Practical

intelligence

• Above average cognitive ability• Able to solve real-world problems

Knowledge ofthe Business

• Understands external environment• Aids intuitive decision making

Eight Leadership Competencies (con’t)

Leadership Motivation

• Motivation to lead others• High need for socialized power

Emotional Intelligence

• Perceiving, assimilating, understanding, and regulating emotions

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Authentic Leadership at TNT

TNT, the Netherlands-based

express and mail delivery

services company, relies on

“honesty, authentic leadership,

and truly connecting with staff” to

keep the firm humanized. “What

you can do as a company is

emphasize that authentic

leadership is key and explain

what it entails” says TNT’s head

of human resources.

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Authentic Leadership

Know Yourself

• Engage in self-reflection

• Feedback from trusted sources

• Know your life story

Be Yourself

• Develop your own style

• Apply your values

• Maintain a positive core self-evaluation

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Competency Perspective Limitations

1. Implies a universal approach

2. Alternative combinations of competencies might work just as well

3. Leadership is relational, not just something within the person

4. Competencies refer to leadership potential, not performance

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Leader Behavior Perspective

Task-oriented behaviors• Assign work, clarify responsibilities• Set goals and deadlines, provide feedback• Establish work procedures, plan future work

People-oriented behaviors• Concern for employee needs• Make workplace pleasant• Recognize employee contributions• Listen to employees

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Leader Behavior Perspective Limitations

These categories mask subcategories of leader behavior that may be distinct

Assumes best leaders display a high level of both people-oriented and task-oriented styles• But best style seems to depend on the situation

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Servant Leadership

Leaders serve others toward their need fulfillment, personal development, and growth

Described as selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches

Three main features:1. Natural calling to serve others

2. Maintain a humble, egalitarian, accepting relationship

3. Anchor decisions/actions on ethical principles

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Anne Sweeney’s Path-Goal Leadership

Disney/ ABC executive Anne Sweeney has an uncanny ability to provide both task-oriented and people-oriented leadership.

“There's great resolve and strength there.”

“Anne draws upon her optimism and her grace in keeping her focus firmly on the future.”

“[She] asks the tough questions. . . . It trains you to anticipate it.”

“She's very concerned about the people who work for her.”

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Path-Goal Leadership

Effective leaders provide the information, support, and other resources, and ensure that rewards are linked to good performance

Several employee and situational contingencies to determine the best leader style

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Path-Goal Leadership Styles

Directive• Provide psychological structure to jobs• Task-oriented behaviors

Supportive• Provide psychological support• People-oriented behaviors

Participative• Encourage/facilitate employee involvement

Achievement-oriented• Encourage peak performance through goal setting and

positive self-fulfilling prophecy

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Path-Goal Leadership Model

EmployeeContingencies

EnvironmentalContingencies

LeaderBehaviors

• Directive• Supportive• Participative• Achievement-

oriented

Leader Effectiveness

• Employee motivation

• Employee satisfaction

• Acceptance of leader

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Path-Goal Contingencies

Skill and experience• Low: directive and supportive leadership

Locus of control• Internal: participative and achievement leadership• External: directive and supportive leadership

Task structure• Nonroutine: directive and/or participative leadership

Team dynamics• Low cohesion: supportive leadership• Dysfunctional norms: directive leadership

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Other Contingency Leader Theories

Situational Leadership Model• Four styles: telling, selling, participating, delegating• Best style depends on follower ability/motivation• Popular model, but lacks research support

Fiedler’s Contingency Model• Leadership style is stable -- based on personality• Best style depends on situational control• Theory has problems, but uniquely points out that

leaders have a preferred style, not very flexible

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Leadership Substitutes

Contingencies that limit a leader’s influence or make a particular leadership style unnecessary• e.g.: Training and experience replace task-oriented

leadership

Research evidence: substitutes help, but don’t completely substitute for real leadership

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Transformational, Managerial, and Transactional Leadership Transformational leadership

• Change agents – transforming the organization to fit environment

Managerial leadership• Improving employee performance

and well-being in the current situation

• Applies contingency leadership theories (e.g. path-goal)

Transactional leaders• Influencing followers through

rewards, penalties, and negotiation

Courtesy of Microsoft

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Transformational v. Charismatic Leaders

Some leadership models say charismatic leadership is essential for transformational leadership

Emerging view -- charisma differs from transformational leadership

Charisma is a personal trait that provides referent power• Doesn’t necessarily attempt to change the organization

Transformational leadership is a set of behaviors to bring about change

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Transformational Leadership Model

Developa strategic

vision

Communicate the vision

Model the vision

Build commitment to the vision

Elements of

Transformational

Leadership

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Transformational Leadership Elements

Create a strategic vision• Image of company’s attractive

future• Motivates and bonds employees• Vision may originate from the leader,

employees, or other stakeholders

Communicate the vision• Frame message around a grand

purpose• Shared mental model of the future• Use symbols, metaphors, symbols

Developa strategic

vision

Communicate the vision

Elements of Transformational

Leadership

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Transformational Leadership Elements (con’t)

Model the vision• Walk the talk• Symbolize/demonstrate the

vision through behavior• Employees trust leader more

Build commitment to the vision• By communicating and modeling the vision• Through employee involvement in shaping

the shared vision

Developa strategic

vision

Communicate the vision

Model the vision

Build commitment to the vision

Elements of Transformational

Leadership

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Evaluating Transformational Leadership

Transformational leadership is important• Higher employee satisfaction, performance, org

citizenship, creativity

Transformational leadership limitations• Risk of circular logic

- Some research defines transformational leaders by their success rather than their behavior

• Universal theory- Need a contingency-oriented theory- Need to recognize cultural differences

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Implicit Leadership Perspective

Follower perceptions of characteristics of effective leaders

1. Leadership prototypes• Preconceived beliefs about the features and

behaviors of effective leaders.

2. Romance of leadership effect• Amplify effect of leaders on organizational results• Fundamental attribution error• Need for situational control

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Leading with Ubuntu Values

Barloworld Logistics CEO Isaac Shongwe is keen to imprint Africa’s unique ubuntu value throughout the company’s operations in 26 countries. Ubuntu is the notion of that each of us is a person through others. Thus, ubuntu calls for leadership that emphasizes mutual respect, tolerance, and forgiveness.

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Cultural Issues in Leadership

Societal cultural values and practices affect leaders:• Shape leader’s values/norms• Influence decisions and actions• Shape follower prototype of

effective leaders

Some leadership styles are universal, others differ across cultures• “Charismatic visionary” seems to

be universal• Participative leadership works

better in some cultures than others

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Gender Issues in Leadership

Male and female leaders have similar task- and people-oriented leadership

Participative leadership style is used more often by female leaders

Evaluating female leaders• Still receive negative evaluations as leader due to

prototypes and gender stereotypes• But evidence that they are good at emerging

leadership styles (coaching, teamwork)

Chapter 12

Leadership in Organizational Settings