LeadershipLeadership

Group 3

ObjectivesObjectives Define leadership and contrast leadership and management.

Summarize the conclusions of trait theories of leadership.

Identify the central tenets and main limitations of behavioral theories.

Assess contingency theories of leadership by their level of support.

Compare and contrast charismatic and transformational leadership.

Define authentic leadership and show why effective leaders exemplify

ethics and trust.

Demonstrate the role mentoring plays in our understanding of leadership.

Address challenges to the effectiveness of leadership.

Assess whether charismatic and transformational leadership generalize

across cultures.

What Is Leadership?What Is Leadership?

Leadership

The ability to influence a group toward the achievement of a vision or set of goals.

Management

Use of authority inherent in designated formal rank to obtain compliance from organizational members.

Nonsanctioned Leadership?Nonsanctioned Leadership?

The ability to influence that arises outside

the formal influence

All Leaders are not Managers

All Managers are not Leaders

Trait TheoriesTrait Theories

Leadership Traits:

• Ambition and energy

• The desire to lead

• Honest and integrity

• Self-confidence

• Intelligence

• High self-monitoring

• Job-relevant knowledge

Leadership Traits:

• Ambition and energy

• The desire to lead

• Honest and integrity

• Self-confidence

• Intelligence

• High self-monitoring

• Job-relevant knowledge

Traits Theories of Leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.

Big Five Personality FrameworkBig Five Personality Framework

AgreeablenessAgreeableness

ConscientiousnessConscientiousness

Extraversion

Emotional StabilityEmotional Stability

Openness to ExperienceOpenness to Experience

Strong Leaders - historyStrong Leaders - history

Trait TheoriesTrait Theories

Limitations:

• No universal traits found that predict leadership in all situations.

• Traits predict behavior better in “weak” than “strong” situations.

• Unclear evidence of the cause and effect of relationship of leadership and traits.

• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Limitations:

• No universal traits found that predict leadership in all situations.

• Traits predict behavior better in “weak” than “strong” situations.

• Unclear evidence of the cause and effect of relationship of leadership and traits.

• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Behavioral TheoriesBehavioral Theories

• Trait theory:Leaders are born, not made.

• Behavioral theory:Leadership traits can be taught.

• Trait theory:Leaders are born, not made.

• Behavioral theory:Leadership traits can be taught.

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.

Ohio State StudiesOhio State Studies

Initiating Structure

The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment.

Consideration

The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.

University of Michigan StudiesUniversity of Michigan Studies

Employee-Oriented Leader

Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members.

Production-Oriented Leader

One who emphasizes technical or task aspects of the job.

The Managerial Grid

(Blake and Mouton)

The Managerial Grid

(Blake and Mouton)

Contingency Theories

Fiedler’s Contingency ModelThe theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.Least Preferred Co-Worker (LPC) Questionnaire

An instrument that purports to measure whether a person is task- or relationship-oriented.

LPC Scale

• Used to measure a person’s leadership style• For example, it measures your style by

having you describe a coworker with whom you had difficulty completing a job. (not necessarily someone you dislike, but someone with whom you least like to work with)

• After you choose this person, the LPC instrument asks you to describe your coworker on 16 sets of adjectives

Least Preferred Coworker (LPC) ScalePleasant 8 7 6 5 4 3 2 1 UnpleasantFriendly 8 7 6 5 4 3 2 1 UnfriendlyRejecting 8 7 6 5 4 3 2 1 AcceptingTense 8 7 6 5 4 3 2 1 RelaxedCold 8 7 6 5 4 3 2 1 WarmSupportive 8 7 6 5 4 3 2 1 HostileBoring 8 7 6 5 4 3 2 1 InterestingQuarrelsome 8 7 6 5 4 3 2 1 HarmoniousGloomy 8 7 6 5 4 3 2 1 CheerfulOpen 8 7 6 5 4 3 2 1 ClosedBackbiting 8 7 6 5 4 3 2 1 LoyalUntrustworthy 8 7 6 5 4 3 2 1 TrustworthyConsiderate 8 7 6 5 4 3 2 1 InconsiderateNasty 8 7 6 5 4 3 2 1 NiceAgreeable 8 7 6 5 4 3 2 1 DisagreeableInsincere 8 7 6 5 4 3 2 1 SincereKind 8 7 6 5 4 3 2 1 Unkind

Scoring

• Your final score is the total of the numbers you circled on the 16 scales

• 57 or less = Low LPC (task motivated)

• 64 or above = High LPC (motivated by relationships)

Defining the Situation

1.Leader-Member Relations

The degree of confidence, trust, and respect subordinates have in their leader.

3.Position Power

Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

2. Task Structure

The degree to which the job assignments are procedurized.

Fiedler has identified 3 situational dimensions

Findings from Fiedler Model

A contingency theory that focuses on followers’ readiness.

Situational Leadership Theory (SLT)Situational Leadership Theory (SLT)

WillingUnwilling

Able

UnableDirective

High Taskand

Relationship Orientations

Supportive Participative

Monitoring

Follower Readiness

LeadershipStyles

Path-Goal TheoryPath-Goal Theory (Robert House)

The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

The Path-Goal Theory

Leader-Participation ModelLeader-Participation Model (Vroom and Yetton)

A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.

Contingency Variables in the Revised Leader-Participation Model

1. Importance of the decision

2. Importance of obtaining follower commitment to the decision

3. Whether the leader has sufficient information to make a good decision

4. How well structured the problem is

5. Whether an autocratic decision would receive follower commitment

6. Whether followers “buy into” the organization’s goals

7. Whether there is likely to be conflict among followers over solution alternatives

8. Whether followers have the necessary information to make a good decision

9. Time constraints on the leader that may limit follower involvement

10.Whether costs to bring geographically dispersed members together is justified

11. Importance to the leader of minimizing the time it takes to make the decision

12. Importance of using participation as a tool for developing follower decision skills

© 2005 Prentice Hall Inc. All rights reserved. 11–26

Leader–Member Exchange Theory

Leader-Member Exchange (LMX) Theory

Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

Leader-Member Exchange Theory

Leader-Member Exchange (LMX) Theory

• Because of time pressures, leaders form a special relationship with

a small group of followers: the “in-group”

• This in-group is trusted and gets more time and attention from the

leader (more “exchanges”)

• All other followers are in the “out-group” and get less of the

leader’s attention and tend to have formal relationships with the

leader (fewer “exchanges”)

• Leaders pick group members early in the relationship

How groups are assigned is unclear– Follower characteristics determine group membership

Leaders control by keeping favorites close

• Research has been generally supportive

Leader-Member Exchange (LMX) Theory

“Certain quality of an individual personality, by virtue of which he / she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional power or qualities”.

“Max Weber”

Charismatic Leadership

• House’s Charismatic Leadership Theory:– Followers make attributions of heroic or extraordinary leadership

abilities when they observe certain behaviors

• Four characteristics of charismatic leaders– Have a vision– Are willing to take personal risks to achieve the vision– Are sensitive to follower needs– Exhibit behaviors that are out of the ordinary

Charismatic Leadership

Are Charismatic Leaders born / Made?

• Traits and personality are related to charisma

• People can be trained to exhibit charismatic behaviors• 3 step Process

1. Develop on aura of charisma by maintaining an optimistic view.

2. Draw others in by creating a bond that inspires them to follow.

3. Bring out the potential in followers by tapping into their emotions

How Charismatic Leaders Influence Followers

• A four-step process:1. Leader articulates an attractive vision

• Vision Statement:

A formal, long-term strategy to attain goals• Links past, present, and future

2. Leader communicates high performance expectations and confidence in follower ability

3. Leader conveys a new set of values by setting an example

4. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision

Does effective charismatic leadership depend on the situation?

Charismatic effectiveness may depend on situation– Charisma works best when:

• The follower’s task has an ideological component• There is a lot of stress and uncertainty in the

environment• The leader is at the upper level of the organization• Followers have low self-esteem and self-worth

The dark side of charismatic leadership

• Dark Side of Charisma

– Ego-driven charismatics allow their self-

interest and personal goals to override the

organization’s goals

Transformational Leadership

Transactional and Transformational Leadership

Transactional Leaders– Leaders who guide or motivate their followers in the

direction of established goals by clarifying role and task requirements

Transformational Leaders– Inspire followers to transcend their own self-interests for

the good of the organization; they can have a profound and extraordinary effect on followers

Not opposing, but complementary, approaches to leadership– Great transformational leaders must also be transactional;

only one type is not enough for success

Characteristics of the Two Types of Leaders

Transactional• Contingent Reward:

– Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments

• Management by Exception:– Active: Watches and searches

for deviations from rules and standards, takes corrective action

– Passive: Intervenes only if standards are not met

• Laissez-Faire: – Abdicates responsibilities,

avoids making decisions

Transformational

• Idealized Influence: – Provides vision and sense of

mission, instills pride, gains respect and trust

• Inspiration:– Communicates high

expectations, uses symbols to focus efforts, expresses important issues simply

• Intellectual Stimulation:– Promotes intelligence,

rationality, and problem solving

• Individualized Consideration: – Gives personal attention, coaches,

advises

The Relationship between Transformational and Transactional Leadership

These two are not opposing approaches. They complement each other They are not equally important Transformational Leadership builds on Transactional

Leadership if you are a good transactional leader but do not have

transformational qualities. The best leaders are transactional and

transformational.

Full range of Leadership model

Laissez - Faire

Individualized Consideration

Intellectual Stimulation

Contingent Reward

Inspirational Motivation

Idealized Influence

Management by Exception

ActivePassive

Effective

Ineffective

Transactional

Transformational

How Transformational Leadership Works

Leaders – More effective

– More creative

– Encourage those who follow them

– Show greater agreement among

top manager about organizational

goal.

– Improving performance by building

consensus among group members

– Able to increase the follower

efficiency

How Transformational Leadership Works……

Response of leaders in Organization

- Greater decentralization

- Manager have propensity to take risk

- Compensation plans geared toward

long term result

- Facilitate corporate entrepreneurship.

Evaluation of Transformational Leadership

Transformational Leadership theory is not perfect 4 I’s in transformational leadership are not

always superior in effectiveness to transactional leadership.

It is more strongly correlated than transactional leadership with,

1. Lower turnover rates

2. Higher productivity

3. Lower employee stress and burnout

4. Higher employee satisfaction

Transformational Leadership versus Charismatic Leadership

Charismatic Leadership – Want followers to adopt charismatic world and go no further

Transformational leadership – Attempt to instill in followers the ability to question not only established views but eventually those established by leaders.

many researchers believes transformational is broader than charismatic leadership.

Leader score is high in both leadership.

Therefore, in practice they may be roughly equivalent.

Authentic leaders know who they are, know what they believe in value, and act on those values and beliefs openly and candidly

Authentic Leadership

Ethics and Leadership

Ethical Leaders Unethical Leaders Treat followers effective

Socialized Charismatic Leadership

leadership that conveys other centered (not self centered) values by leaders who model ethical conduct

Trust is a psychological state that exists when you agree to make yourself vulnerable to another

Trust and Leadership

Employees’ Trust in Their CEOsEmployees’ Trust in Their CEOs

 

Leader Trustworthiness

Integrity

Benevolence

Ability

Trust

Risk taking

Information sharing

Group Effectiveness

Productivity

Propensity to Trust

How trust developed?

Challenges to the Leadership Construct

Leadership as an AttributionLeadership as an Attribution

External

Internal

Individual Behaviour

Distinctiveness

Consensus

Consistency

External

External

Internal

Internal

Attribution Theory

Attribution Theory of LeadershipAttribution Theory of Leadership

– The idea that leadership is merely an attribution that people make about other individuals

Qualities Attributed to Leaders:

• Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious.

• Effective leaders are perceived as consistent and unwavering in their decisions.

• Effective leaders project the appearance of being leaders.

Substitutes and Neutralizers for Leadership

• Leadership substitutes

subordinate, task, or organizational

characteristics that make leaders redundant or

unnecessary• Leadership neutralizers

subordinate, task, or organizational

characteristics that interfere with a leader’s

actions

Substitutes and – Continue……….

• Relationship- Task- oriented oriented

Characteristics Leadership Leadership

Individual • Experience/training No effect on Substitutes for

Professionalism Substitutes for Substitutes forIndifference to rewards Neutralizes Neutralizes

Job • Highly structured task No effect on Substitutes for

Provides its own feedback No effect on Substitutes forIntrinsically satisfying Substitutes for No effect on

Organization

• Explicit formalized goals No effect on Substitutes forRigid rules and procedures No effect on Substitutes forCohesive work groups Substitutes for Substitutes for

Online LeadershipOnline Leadership

Leadership at a Distance: Building Trust– The lack of face-to-face contact in electronic

communications removes the nonverbal cues that support verbal interactions.

– There is no supporting context to assist the receiver with interpretation of an electronic communication.

– The structure and tone of electronic messages can strongly affect the response of receivers.

– An individual’s verbal and written communications may not follow the same style.

– Writing skills will likely become an extension of interpersonal skills.

Finding and creating effective leaders

By reviewing the knowledge, skills and abilities needed to do the job

effectively.

Personality tests :- Can identify traits associated with leadership.

• Extraversion

• Conscientiousness

• Openness to experience

• Self monitoring – high self monitors are better at reading situations and

adjusting their behavior accordingly.

• Self confidence

• Having a vision

• The verbal skills to frame issues or charismatic physical presence.

• High emotional intelligence – especially in situations requiring transformational

leadership

• Experience – Poor predictor of leader effectiveness but situation- specific

experience is relevant.

Training leadersThese efforts take many forms:-• From executive leadership programs and outward bound programs

How can managers get maximum effect from their leadership trainings?

1. Let’s recognize the obvious. high self monitors – they have the flexibility to change their

behavior.2. What can organizations teach that might be related to higher leader

effectiveness?• Not “ vision creation” but, likely, implementation skills.• Can train people to develop “ an understanding about content

themes critical to effective visions”• Can teach skills – Trust building and mentoring• Can be taught situational – analysis skills.

A number of companies turn to executive coaches to help senior managers improve their leadership skills.Hired coaches to help top executives improve their interpersonal skills and be more professional in their approach.

Global implications

How culture might influence the validity of the theories ?

India Brazil France Egypt China

Action orientation & charisma were found to be the most important characteristics for effective leadership

•Team oriented,Participative &humane•Participative decision making would be suited to managing employees

•More bureaucratic view of leaders•Less likely to expect them to be humane & considerate.•A leader high on initiating structure will do best & can make decisions in a relatively autocratic manner

•Team oriented•Participative leadership •Relatively high- power-distance culture

•Emphasizes being polite, considerate & unselfish•It also has a high performance orientation•Moderately participative•Status difference between leaders and employees

A number of elements making up transformational leadership appear associated with effective leadership, regardless of the country

What elements of transformational leadership appear universal ?

ForesightVisionProviding encouragementTrust worthinessDynamismPositivenessPro-activeness

Universal aspects of leadership

Conclusions of the two members of the GLOBE team

“ Effective business leaders in any country are expected by their subordinates to provide a powerful & proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, & excellent planning skills to assist in implementing the vision.

Mentoring – Leading for the Future Mentor: A senior employee who supports a less

experienced employee.

Career FunctionsHelping the protégé gain skills

and abilities

Lobbying for the protégé to get better assignments

Providing exposure to influential individuals in the organization

Acting as a sounding board for ideas

Protecting the protégé to his or her reputation

Psychological Functions

Counseling the protégé to bolster his/her confidence

Sharing personal experiences with the

protégé

Providing friendship and acceptance

Acting as a role model

Finding and Creating Effective LeadersFinding and Creating Effective Leaders

Selecting Leaders

Training Leaders

Summary and Managerial ImplicationsSummary and Managerial Implications

• Leadership is central to understanding group behavior as the leader provides the direction.

• Extroversion, conscientiousness, and openness all show consistent relationships to leadership.

• Behavioral approaches have narrowed leadership down into two usable dimensions.

• Need to take into account the situational variables, especially the impact of followers.

Summary conti…….Summary conti…….

• Research on charismatic and transformational leadership has made major contributions to our understanding of leadership.

• Leaders must be seen as authentic and trustworthy.

• Investment must be made in the future through mentoring and training leaders.

THANK YOU