Chapter Ten

Leadership

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What Do People Want from their Leaders?

Help in achieving their goalsSupport for personal developmentClearing obstacles to high-level performanceTreatment that is respectful, fair, and ethical.

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What Do Organizations Need?

Organization need people at all levels to be leaders.

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Key Leadership Behaviors

The best leaders do five things: Challenge the process Inspire a shared vision Enable others to act Model the way Encourage the heart

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Vision

Vision A mental image of a

possible and desirable future state of the organization.

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Vision

Visions in action Visions can be small or large and exist throughout

all organizational levels, as well as at the very top. A vision is necessary for effective leadership. A person or team can develop a vision for any

job, work unit, or organization. Many people, including managers who do not

develop into strong leaders, do not develop a clear vision – they focus on performing or surviving on a day-to-day basis.

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Inappropriate Vision

An inappropriate vision may reflect only the leader’s personal needs.

An inappropriate vision may ignore stakeholder needs.

An inappropriate vision may need to change.

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Leaders versus Managers

MANAGERS

Do things rightStatus quoShort-term

MeansBuilders

Problem solving

MANAGERS

Do things rightStatus quoShort-term

MeansBuilders

Problem solving

LEADERS

Do the right thingChange

Long-termEnds

ArchitectsInspiring & motivating

LEADERS

Do the right thingChange

Long-termEnds

ArchitectsInspiring & motivating

1.11.1

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Leading and Managing

Supervisory leadership Behavior that provides

guidance, support, and corrective feedback for day-to-day activities.

Strategic leadership Behavior that gives

purpose and meaning to organizations, envisioning and creating a positive future.

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Good leaders need good followers

Organizations succeed or fail not only because of how well they are led but also because of how well followers follow.

The most effective followers are capable of: Independent thinking. Actively committed to organizational goals.

Effective followers are distinguished from ineffective ones by their enthusiasm and commitment to the organization and to a person or purpose – an idea, a product – other than themselves or their own interests.

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Power and Leadership

Power The ability to influence others.

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Sources of Power

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Sources of Power

Exhibit 10.1

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Power

Legitimate power is where the leader has the right, or authority to tell others what to do; employees are obligated to comply with legitimate orders.

Reward power is where the leader influences others because she or he controls valued rewards; people comply with the leader’s wishes in order to receive those rewards.

Coercive power is where the leader has control over punishments; people comply to avoid those punishments.

Referent power is where the leader has personal characteristics that appeal to others; people comply because of admiration, a desire for approval, personal liking, or a desire to be like the leader.

Expert power is where the leader has certain expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise.

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Traditional Approaches to Understanding Leadership

Trait approach is the oldest leadership perspective and was

dominant for several decades. The perspective is that some personality

characteristics – many of which a person need not be born with but can strive to acquire distinguish effective leaders from other people.

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Useful Leadership Characteristics

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Leader Behaviors

Behavioral approach A leadership perspective that attempts to identify

what good leaders do—that is, what behaviors they exhibit.

The three general categories of leadership are:• Task-performance behaviors• Group maintenance behaviors• Leader-Member Exchange (LMX)

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Leader Behaviors

Task performance behaviors Actions taken to ensure that the work group or

organization reaches its goals.

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Task Performance Behaviors

This dimension is sometimes referred to as: concern for production directive leadership initiating structure or closeness of supervision.

It includes a focus on: work speed quality and accuracy quantity of output following the rules.

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Group Maintenance

Group maintenance behaviors Actions taken to ensure the satisfaction of group

members, develop and maintain harmonious work relationships, and preserve the social stability of the group

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Group Maintenance

This dimension is sometimes referred to as: concern for people supportive leadership consideration.

It includes a focus on: People’s feelings and comfort Appreciation of the person Stress reduction

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Group Maintenance

Leader-Member Exchange (LMX) theory Highlights the importance of leader behaviors not

just toward the group as a whole but toward individuals on a personal basis.

This includes a focus on: Trust Open communication Mutual respect Mutual obligation Mutual loyalty

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Questions Assessing Task Performance and Group Maintenance Leadership

Exhibit 10.2

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Participation in Decision Making

Laissez-faire leadership philosophy

characterized by an absence of managerial decision making.

Leads to more negative attitudes and lower performance.

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Participation in Decision Making

Autocratic leadership A form of leadership in which the leader makes

decisions on his or her own and then announces those decisions to the group

Democratic leadership A form of leadership in which the leader solicits

input from subordinates.

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Blake/Moulton Leadership Grid

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Performance and maintenance behaviors

Ohio State studies found supervisors who were high on maintenance behaviors (which the researchers termed consideration) had fewer grievances and less turnover in their work units than supervisors who were low on this dimension.

Ohio State studies found the opposite for task performance behaviors (which the team called initiating structure). Supervisors high on this dimension had more grievances and higher turnover rates.

An equally famous research program at the University of Michigan concluded that the most effective managers engaged in what they called task-oriented behavior; planning, scheduling, coordinating, providing resources, and setting performance goals.

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The Best Way to LeadDepends on the Situation

Situational approach Leadership perspective proposing that universally

important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation.

These approaches include:• The Vroom model• Fiedler’s Contingency Model• Hersey and Blanchard’s Situational Theory• Path-Goal Theory

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Vroom-Yetton-Jago Model

Many people believe that making tough decisions is at the heart of leadership.

However, experienced leaders will tell you that deciding how to make decisions is just as important.

The normative decision theory helps leaders decide how much employee participation (from none to letting employees make the entire decision) should be used when making decisions.

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Situational Factors forProblem Analysis

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The Vroom Model of Leadership

Vroom model A situational model

that focuses on the participative dimension of leadership.

Decision Styles:• Decide• One-on-one consultation• Consult the group• Facilitate• Delegate

Exhibit 10.4

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Vroom’s Leader Decision Styles

Exhibit 10.5

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Decision Styles

Solve the problem Yourself

Autocratic

Solve the problem Yourself

Autocratic

Obtain information.Select a solutionyourself.

Obtain information.Select a solutionyourself.

Share problem,get ideas fromindividuals.Select asolution yourself.

Consultative

Share problem,get ideas fromindividuals.Select asolution yourself.

Consultative

AI AII CI

Share problemwith group,get ideas.Make decision,which may ormay not reflectinput.

Share problemwith group,get ideas.Make decision,which may ormay not reflectinput.

Share problemwith group.Together triesto reach a solution. Leader acts asfacilitator.

Group

Share problemwith group.Together triesto reach a solution. Leader acts asfacilitator.

Group

CII GII

Leader solves the problemor makes the decision

Leader accepts any decisionsupported by the entire group

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Fiedler’s Contingency Model

Fiedler’s contingency model of leadership effectiveness A situational approach to leadership postulating

that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation.

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Fiedler’s Contingency Model

Task-motivated leadership Leadership that places

primary emphasis on completing a task.

Relationship-motivated leadership Leadership that

places primary emphasis on maintaining good interpersonal relationships.

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Putting Leaders in the Right Situation Fiedler’s Contingency Theory

In order to maximize work group performance, leaders must be matched to the right leadership situation.

Basic assumptions of Fiedler’s theory Leaders are effective when the work groups they

lead perform well. • So instead of judging leader effectiveness by what a

leader does (i.e., initiating structure and consideration) or who the leader is (i.e., trait theory), Fiedler assesses leaders by the conduct and performance of the people they supervise. 39

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Fiedler’s Contingency Theory

Leaders are generally unable to change their leadership styles leaders will be more effective when their

leadership styles are matched to the proper situation.

The favorableness of a situation for a leader depends on the degree to which the situation permits the leader to influence the behavior of group members.

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Fiedler’s Contingency Theory

GroupPerformance

GroupPerformance =

LeadershipStyle

LeadershipStyle

SituationalFavorableness

SituationalFavorableness

To maximize work group performance, leaders must be matched to the right leadership situation.

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Leadership Style:Least Preferred Coworker

• Leadership style is the way a leader generally behaves toward followers.

• Assumes that leadership styles are tied to leader’s underlying needs and personality

• Since personality and needs are relative stable, then leaders are generally incapable of changing leadership styles.

• The way leaders treat people is probably the way they’ve always treated others. Yell, scream and blame others, or do they listen and quietly

correct mistakes.

• Style is measured by the Least Preferred Co-worker scale (LPC) relationship-oriented task-oriented

3.13.1

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Leadership Style:Least Preferred Coworker Scale

3.13.1

People who describe their LPC in a positive manner have relationship orientated leadership styles. People who describe their LPC in a negative manner have task orientated leadership styles.

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Situational Favorableness

Situational Favorableness Assumes that leaders will be more effective when their leadership styles are matched to the proper situation. Situational Favorableness is the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members.

Three factors determine the favorability of a situation:

Leader-member relations Task structure Position power

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Situational Favorableness

Leader-member relations Refers to how well followers respect, trust, and like their leaders.

Task structure The degree that the requirements of a subordinate’s tasks are clearly

specified.

Position power The degree to which leaders are able to hire, fire, reward and punish

workers

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Fiedler’s Analysis of Situations

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Hersey and Blanchard’s Situational Theory

Hersey and Blanchard’s situational theory A life-cycle theory of leadership postulating that a

manager should consider an employee’s psychological and job maturity before deciding whether task performance or maintenance behaviors are more important.

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Worker Readiness

• The ability and willingness to take responsibility for directing one’s behavior at work

• Components of worker readiness: Job maturity Psychological maturity

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Hersey and Blanchard’s Situational Theory

Job maturity The level of the

employee’s skills and technical knowledge relative to the task being performed.

Psychological maturity An employee’s self-

confidence and self-respect.

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Worker Readiness

R4R4

R3R3

R2 R2

R1R1

confidentwilling able

confidentwilling able

insecurenot willingable

insecurenot willingable

confidentwilling not able

confidentwilling not able

insecure not able not willing

insecure not able not willing

Beyond the Book

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Leadership Styles

Telling(R1)

Telling(R1)

Selling(R2)

Selling(R2)

Participating(R3)

Participating(R3)

Delegating(R4)

Delegating(R4)

high task behaviorlow relationship behavior

high task behaviorlow relationship behavior

high task behaviorhigh relationship behavior

high task behaviorhigh relationship behavior

low task behaviorhigh relationship behavior

low task behaviorhigh relationship behavior

low task behaviorlow relationship behavior

low task behaviorlow relationship behavior

Beyond the Book

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Path-Goal Theory

Path-goal theory A theory that concerns how leaders influence

subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals.

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The Path-Goal Framework

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Path-Goal Theory

Subordinate Contingencies•Perceived Ability•Locus of Control•Experience

Subordinate Contingencies•Perceived Ability•Locus of Control•Experience

Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group

Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group

Outcomes•Subordinate satisfaction•Subordinate performance

Outcomes•Subordinate satisfaction•Subordinate performance

Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented

Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented

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Leadership StylesDirective

letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.

Supportive involves being friendly and approachable to employees, showing

concern for them and their welfare, treating them as equals, and creating a friendly climate

Participative consulting employees for their suggestions and input before making

decisions.

Achievement-Oriented means setting challenging goals, having high expectations of

employees, and displaying confidence that employees will assume responsibility and put forth extraordinary effort.

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Subordinate and Environmental Contingencies

Perceived ability

Locus of control

internal

external

Experience

Perceived ability

Locus of control

internal

external

Experience

Subordinate Environmental

Task structure

Formal authority system

Primary work group

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Subordinates Contingencies

• Perceived ability • how much ability subordinates believe they have

for doing their jobs well.

• Locus of control • a personality measure that indicates the extent to

which people believe that they have control over what happens to them in life. • Internals believe that what happens to them, good or

bad, is largely a result of their choices and actions. • Externals, on the other hand, believe that what happens

to them is caused by external forces outside of their control

• Experience57

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Environmental Contingencies

Task structure the degree to which the requirements of a

subordinate's tasks are clearly specified. Formal authority system

an organization's set of procedures, rules, and policies.

Primary work group refers to the amount of work-oriented

participation or emotional support that is provided by an employee's immediate work group.

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Path Goal Theory:When to Use Leadership Styles

Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of

control Unclear formal authority system

Structured, simple, repetitive tasks

Stressful, frustrating tasks When workers lack confidence Clear formal authority system

Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived ability Workers with internal locus of

control Workers not satisfied with rewards Complex tasks

Unchallenging tasks

Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of

control Unclear formal authority system

Structured, simple, repetitive tasks

Stressful, frustrating tasks When workers lack confidence Clear formal authority system

Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived ability Workers with internal locus of

control Workers not satisfied with rewards Complex tasks

Unchallenging tasks

4.24.2

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Substitutes for Leadership

Substitutes for leadership Factors in the

workplace that can exert the same influence on employees as leaders would provide.

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Leadership Substitutes and Neutralizers

Characteristic People-RelatedLeadership Behaviors

Task-RelatedLeadership Behaviors

Subordinate Characteristics Ability, experience, training, knowledge Need for independence Professional orientation Indifference toward organizational rewards

NeutralizeNeutralizeSubstitute, NeutralizeNeutralize

Substitute, NeutralizeNeutralizeSubstitute, NeutralizeNeutralize

Task Characteristics Unambiguous and routine tasks Performance feedback provided by the

work itself Intrinsically satisfying work

No effectNo effect

Substitute, Neutralize

Substitute, NeutralizeSubstitute, Neutralize

Neutralize

Organizational Characteristics Formalization, meaning specific plans,

goals, and areas of responsibility Inflexibility, meaning rigid, unbending rules

and procedures Highly specified staff functions Cohesive work groups Organizational rewards beyond a leader's

control Spatial distance between supervisors and

subordinates

No effect

No effect

No effectSubstitute, NeutralizeNeutralize

Neutralize

Neutralize

Neutralize

NeutralizeSubstitute, NeutralizeNeutralize

Neutralize

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Contemporary Perspectives on Leadership

Charismatic leader A person who is dominant, self-confident,

convinced of the moral righteousness of his beliefs, and able to arouse a sense of excitement and adventure in followers.

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Contemporary Perspectives on Leadership

Transformational leader A leader who motivates people to transcend their

personal interests for the good of the group. Transformational leaders move beyond the more

traditional transactional approach to leadership. Transactional leaders

• manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered.

• Are normally dispassionate; do not excite, transform, empower or inspire.

• However, may be more effective for individualists

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Contemporary Perspectives on Leadership

Skills that contribute to transformational leadership: Have a vision Communicate their vision Build trust Have positive self-regard

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Contemporary Perspectives on Leadership

Level 5 leadership A combination of strong professional will

(determination) and humility that builds enduring greatness.

Level 5 leaders exhibit both transformational and transactional skills

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Authentic Leadership AddsAn Ethical Dimension

Authentic leadership A style in which the

leader is true to himself or herself while leading

Care about public interests(community, organizational) not just their own

Willing to sacrifice own interests for others

Ethically mature

Pseudo-transformational leaders Leaders who talk

about positive change but allow their self-interest to take precedence over followers’ needs

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Today’s Organizations OfferMany Opportunities to Lead

Servant-leader A leader who serves

others’ needs while strengthening the organization.

Bridge leaders A leader who bridges

conflicting value systems or different cultures.

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Today’s Organizations OfferMany Opportunities to Lead

Shared leadership Rotating leadership, in

which people rotate through the leadership role based on which person has the most relevant skills at a particular time.

Lateral leadership Style in which

colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.

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Good Leaders Need Courage

See things as they are and face them head-on, making no excuses and harboring no wishful illusions.

Say what needs to be said to those who need to hear it.

Persist despite resistance, criticism, abuse, and setbacks

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http://bevideos.mhhe.com/business/video_library/0077424611/swf/Clip_16.html

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Video: Japan CEO

Why does the CEO of Japan Airlines take a bus to work?

What style of leadership does, CEO Naruka Nishimatsu, exhibit to his employees?