Leadership

Leadership

What is it? Hard to define We know it when we see it

General Definition Social influence in an organizational setting,

the effects of which are relevant to or have an impact on the achievement of organizational goals

Leader Effectiveness

How can we tell a “good” leader from a “poor” leader? (What results would we expect to see from a “good” leader?)

Performance (the job gets done) Motivation (followers are energized) Effort (followers try hard) Satisfaction (followers are happy)

Focus of Trait Approach

Focuses exclusively on leader What traits leaders

exhibit Who has these traits

Organizations use personality assessments to find “Right” people AssumptionAssumption - will increase

organizational effectiveness Specify characteristics/traits

for specific positions Personality assessment

measures for “fit”

LeaderLeaderLeaderLeader PersonalitPersonalityy

AssessmeAssessmentsnts

PersonalitPersonalityy

AssessmeAssessmentsnts

Strengths

Intuitively appealingappealing Perception that leaders

are different in that they possess special traits

People “need” to view leaders as gifted

CredibilityCredibility due to a century of research support

Highlights leadership leadership componentcomponent in the leadership process Deeper level

understanding of how leader/personality related to leadership process

Provides benchmarks benchmarks for what to look for in a leader

Criticisms Fails to delimitdelimit a

definitive list of leadership traits Endless lists have

emerged

Doesn’t take into account situational situational effectseffects Leaders in one situation

may not be leaders in another situation

List of most important leadership traits is highly subjectivehighly subjective Much subjective experience &

observations serve as basis for identified leadership traits

Research fails to look at traits in relationship to leadership outcomesoutcomes

Not useful for training & training & developmentdevelopment

Application Provides direction as to which traits

are good to have if one aspires to a leadership position

Through various tests and questionnaires, individuals can determine whether they have the select leadership traits and can pinpoint their strengths and weaknesses

Can be used by managers to assess where they stand within their organization and what is needed to strengthen their position

Leadership TraitsLeadership Traits• IntelligenceIntelligence• Self-ConfidenceSelf-Confidence• DeterminationDetermination• IntegrityIntegrity• SociabilitySociability•AdaptabilityAdaptability

Style Approach Description

Leader-focused perspective

Emphasis on what leaders do and how they act

Comprised of Two Comprised of Two Kinds of BehaviorsKinds of Behaviors Task behaviorsTask behaviors

Facilitate goal accomplishment

Relationship Relationship behaviorsbehaviors

Help subordinates feel comfortable with themselves, each other, and the situation

PerspectivPerspectivee

PerspectivPerspectivee

DefinitionDefinitionDefinitionDefinition

Style Approach

Primarily a framework Primarily a framework for assessing for assessing leadership in a broad leadership in a broad way as behavior with a way as behavior with a task and relationship task and relationship dimensiondimension

Offers a means of Offers a means of generally assessing the generally assessing the behaviors of leadersbehaviors of leaders

FocusFocusFocusFocus Overall ScopeOverall ScopeOverall ScopeOverall Scope

Strengths Style Approach marked a major shiftmajor shift in leadership

research from exclusively trait focused to include behaviors and actions of leaders

Broad range of studies on leadership style validates and gives credibility to the basic tenets of the approach

At conceptual level, a leader’s style is composed of two major types of behaviors: task and relationshiptask and relationship

Based on style approach, leaders can assess their actions and determine how to change to improve their leadership style

Criticisms

Research has notnot adequately demonstrated how leaders’ styles are associated with performance outcomes

No universalNo universal style of leadership that could be effective in most situations

Implies that the most effective leadership style is High-HighHigh-High style (i.e., high task/high relationship); research finding support is limited

Leadership as Behavior

100’s of studies examined the effects of leader behavior on employees.

Results were mixed, inconclusive (Bass, 1990).

Fleishman and Harris (1962) found that initiating structure was positively related to employee grievances and turnover.

House, Filley, and Kerr (1971) found evidence suggesting initiating structure was positively related to employee satisfaction.

Leadership as Behavior

Fleischman & Harris The effects of IS on

grievances depends on Consideration

The effects of both traits and behavior on leader effectiveness depends on the situation 0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Low Medium High

Amount of Structure

Gri

evan

ce R

ate

Low Consideration

Medium Consideration

High Consideration

Contingency Theory Approach

Contingency theory is a leader-leader-matchmatch theory (Fiedler & Chemers, 1974) Tries to match leaders to

appropriate situations Leader’s effectiveness effectiveness depends

on how well the leader’s style fits the context

Fiedler et al.’s generalizations about which styles of leadership are best and worst are empirically groundedempirically grounded

Effective leadership is Effective leadership is contingent on contingent on matching a leader’s matching a leader’s style to the right style to the right settingsetting

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DefinitionDefinitionDefinitionDefinition

“Leaders match their style to the competence and commitment of subordinates.”

Leadership Styles

Leadership styles Leadership styles are described as:are described as: Task motivatedTask motivated Relationship Relationship

motivatedmotivated

Task-motivated leadersTask-motivated leaders - -Concerned primarily with Concerned primarily with reaching a goalreaching a goal

Relationship-motivated leadersRelationship-motivated leaders - Concerned with developing close interpersonal relationships

DefinitionDefinitionDefinitionDefinition Dimension Dimension DefinitionsDefinitionsDimension Dimension DefinitionsDefinitions

Least Preferred Co-Worker (LPC) ScaleLeast Preferred Co-Worker (LPC) ScaleLeader Style Measurement ScaleLeader Style Measurement Scale

High = Relationship-motivated leaderHigh = Relationship-motivated leaderLow = Task-motivated leaderLow = Task-motivated leader

Situational Variables

Leader-Member Leader-Member RelationsRelations

Task StructureTask Structure

Position Power

LMRLMR - Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader

TSTS - Concerns the degree to which requirements of a task are clear and spelled out

PPPP - Designates the amount of authority a leader has to reward or punish followers

SituationaSituationall

FactorsFactors

SituationaSituationall

FactorsFactors

DefinitionDefinitionDefinitionDefinition

DetermineDetermineFavorablenessFavorablenessof Situationsof Situations

in Organizationsin Organizations

DetermineDetermineFavorablenessFavorablenessof Situationsof Situations

in Organizationsin Organizations

Contingency Model

GoodGood

11

PoorPoor

High High StructureStructure

High High StructureStructure

Low Low StructureStructure

Low Low StructureStructure

StrongStrongPowerPower

WeakWeakPowerPower

StrongStrongPowerPower

WeakWeakPowerPower

StrongStrongPowerPower

WeakWeakPowerPower

StrongStrongPowerPower

WeakWeakPowerPower

Leader-Leader-MemberMemberRelationsRelations

TaskTaskStructureStructure

PositionPositionPowerPower

PreferredPreferredLeadershipLeadershipStyleStyle

22 33 44 55 66 77 88Low LPCsLow LPCs

Middle LPCsMiddle LPCs High LPCsHigh LPCsLowLow

LPCsLPCs

Strengths

Empirical support. Empirical support. Contingency theory has been tested by many researchers and found to be a valid and reliable approach to explaining how to achieve effective leadership.

Broadened understanding.Broadened understanding. Contingency theory has broadened the scope of leadership understanding from a focus on a single, best type of leadership (e.g., trait approach) to emphasizing the importance of a leader’s style and the demands of different situations.

Predictive.Predictive. Because Contingency theory is predictive, it provides relevant information regarding the type of leadership that is most likely to be effective in particular contexts.

Not an all-or-nothing approachNot an all-or-nothing approach. Contingency theory contends that leaders should notnot expect to be effective in every situation; thus companies should strive to place leaders in optimal situations according to their leadership style.

Leadership profiles.Leadership profiles. Contingency theory supplies data on leadership styles that could be useful to organizations in developing leadership profiles for human resource planning.

Criticisms

Fails to fully explain why why leaders with particular leadership styles are more effective in some situations than others (Black Box problemBlack Box problem)

Criticism of LPC scale validityvalidity as it does not correlate well with other standard leadership measures

Cumbersome Cumbersome to use in real-world settings

Fails to adequately explain what should be done done about a leader/situation mismatch in the workplace

Path-Goal Theory Approach

Goal - Goal - To enhance employee To enhance employee performance and satisfaction by performance and satisfaction by focusing on employee motivationfocusing on employee motivation

Premise Premise - Subordinates will be - Subordinates will be motivated if they believe: (a) they are motivated if they believe: (a) they are capable of performing their work; (b) capable of performing their work; (b) that their efforts will be rewarded; that their efforts will be rewarded; and (c) that the payoff will be and (c) that the payoff will be worthwhileworthwhile

Challenge Challenge - To use a leadership style - To use a leadership style that best meets subordinates’ that best meets subordinates’ motivational needsmotivational needs

Path-goal theory Path-goal theory centers on how leaders centers on how leaders motivate subordinates motivate subordinates to accomplish to accomplish designated goalsdesignated goals

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DefinitionDefinitionDefinitionDefinition

Conditions of Leadership Motivation

It increases the It increases the numbernumber and and kinds kinds of payoffsof payoffs

Path to the goal is Path to the goal is clearclear and easily and easily traveled with traveled with coachingcoaching and and directiondirection

Obstacles and roadblocks are Obstacles and roadblocks are removedremoved

The work itself is personally The work itself is personally satisfyingsatisfying

Leadership generates motivation when:Leadership generates motivation when:

Path-Goal Theory Approach

Path-goal theory is a Path-goal theory is a complex but also pragmatic complex but also pragmatic approachapproach

Leaders should choose a Leaders should choose a leadership style that best fits leadership style that best fits the needs of subordinates the needs of subordinates and their workand their work

Path-goal theory Path-goal theory provides a set of provides a set of assumptionsassumptions about how about how different leadership different leadership styles will interact with styles will interact with subordinate subordinate characteristics and the characteristics and the work situation to affect work situation to affect employee motivationemployee motivation

FocusFocusFocusFocus Overall ScopeOverall ScopeOverall ScopeOverall Scope

Situational Theories of Leadership

Path-Goal Theory hypothesizes that effects of leader behavior on employee performance and satisfaction depend on how leader behavior affects employee motivation.

Directive - Providing guidelines on how to perform tasks.. 

Supportive - demonstrating concern for subordinates’ well being and must be supportive of them as individuals. 

Participative - leader must solicit ideas and suggestions from subordinates and directly invite their participation. 

Achievement - leader sets challenging goals, emphasizing improvements in work performance, and encouraging high levels of goal attainment. 

Effective leaders need all four of these styles since each produces different results. 

Strengths Useful theoretical framework. Useful theoretical framework. Path-goal theory is a useful Path-goal theory is a useful

theoretical framework for understanding how various leadership theoretical framework for understanding how various leadership behaviors affect the satisfaction of subordinates and their work behaviors affect the satisfaction of subordinates and their work performance.performance.

Integrates motivation.Integrates motivation. Path-goal theory attempts to integrate the Path-goal theory attempts to integrate the motivation principles of expectancy theory into a theory of motivation principles of expectancy theory into a theory of leadership.leadership.

Practical model.Practical model. Path-goal theory provides a practical model that Path-goal theory provides a practical model that underscores and highlights the important ways leaders help underscores and highlights the important ways leaders help subordinates.subordinates.

Criticisms

Interpreting the meaning of the theory can be confusingconfusing because it is so complex and incorporates so many different aspects of leadership; consequently, it is difficult to implement.

Empirical research studies have demonstrated only partial supportpartial support for path-goal theory.

It fails to adequately explain the relationshiprelationship between leadership behavior and worker motivation.

The path-goal theory approach treats leadership as a one-wayone-way event in which the leader affects the subordinate.

Application PGT offers valuable insights that can be

applied in ongoing settings to improve one’s leadership.

Informs leaders about when to be directive, supportive, participative, or achievement oriented

The principles of PGT can be employed by leaders at all organizational levels and for all types of tasks

Situational Theories of Leadership

Vroom-Yetton Normative Model Leadership as decision making

Decision-situation model

Theorized that performance was affected by the process leaders use to make decisions

Vroom-Yetton Normative Model

Process used to make decision affects: Decision quality Decision acceptance

The effectiveness of any decision making process depends on several situational factors

Decision Making Example

You are the head of a personnel department which reports to the company president. The president has asked you to make recommendations on how to change and update the performance appraisal system. You are not sure about the approach to take. Your specialty is selection and you desire more information on performance appraisal. Fortunately, three members of your staff are experienced with the various aspects of performance appraisal. However, they rarely agree with each other on the best way to achieve something when it comes to performance appraisal. Fortunately, for this project, these employees will not implement the recommendations.

Leadership as Power

Agent exerts more influence on a target than a target can resist.

Possible outcomes of using power Resistance Compliance Commitment

Sources of Power Reward Coercive Legitimate Expert Referent

Likely Outcomes of Using Power

Type of Outcome Base of Power Commitment Compliance Resistance

Referent Likely Possible Possible

Expert Likely Possible Possible

Legitimate Possible Likely Possible

Reward Possible Likely Possible

Coercive Very Unlikely Possible Likely

LMX Theory Approach Description

Development - Development - LMX theory first LMX theory first described by Dansereau, Graen, described by Dansereau, Graen, & Haga (1975), Graen & Cashman & Haga (1975), Graen & Cashman (1975), and Graen (1976)(1975), and Graen (1976)

Revisions Revisions - Theory has - Theory has undergone a number of revisions undergone a number of revisions since its inception and continues since its inception and continues to be of interest to researchersto be of interest to researchers

AssumptionAssumption - - LMX theory LMX theory challenges the assumption that challenges the assumption that leaders treat followers in a leaders treat followers in a collective way.collective way.

LMX theory LMX theory conceptualizes conceptualizes leadership as a leadership as a process centered in the process centered in the interactions between interactions between leaders and followers.leaders and followers.

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DefinitionDefinitionDefinitionDefinition

Later Studies Initial research primarily addressed Initial research primarily addressed differencesdifferences between in-groups and out-groups; later research addressed how LMX theory was related to between in-groups and out-groups; later research addressed how LMX theory was related to organizational effectivenessorganizational effectiveness Researchers (Graen & Uhl-Bien, 1995) found that Researchers (Graen & Uhl-Bien, 1995) found that high-qualityhigh-quality leader-member exchanges resulted in: leader-member exchanges resulted in:

Less employee turnoverLess employee turnover More positive performance evaluationsMore positive performance evaluations Higher frequency of promotionsHigher frequency of promotions Greater organizational commitmentGreater organizational commitment More desirable work assignmentsMore desirable work assignments Better job attitudesBetter job attitudes More attention and support from the leaderMore attention and support from the leader Greater participationGreater participation Faster career progressFaster career progress

Phases in Leadership MakingGraen & Uhl-Bien (1995)

StrangerStranger

ScriptedScripted

AcquaintanceAcquaintance PartnerPartner

RolesRoles

InfluencesInfluences

ExchangesExchanges

InterestsInterests

One WayOne Way

Low QualityLow Quality

SelfSelf

TestedTested

MixedMixed

Medium QualityMedium Quality

Self / OtherSelf / Other

NegotiatedNegotiated

ReciprocalReciprocal

High QualityHigh Quality

GroupGroup

TIMETIME

Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3

Phase 1Graen & Uhl-Bien (1995)

StrangerStranger• Interactions rule boundInteractions rule bound• Rely on contractual relationshipsRely on contractual relationships• Relate to each other within prescribedRelate to each other within prescribed

organizational rolesorganizational roles• Experience lower quality exchangesExperience lower quality exchanges• Subordinate motives directedSubordinate motives directed

toward self-interesttoward self-interest

Phase 1Phase 1

Phase 2Graen & Uhl-Bien (1995)

AcquaintanceAcquaintance• Offer by leader/subordinate for improved Offer by leader/subordinate for improved career-oriented social exchanges career-oriented social exchanges • Testing period of taking on new roles and Testing period of taking on new roles and leader providing new challengesleader providing new challenges• Shift from formalized interactions toShift from formalized interactions to new ways of relatingnew ways of relating• Quality of exchanges improve along with Quality of exchanges improve along with greater trust and respectgreater trust and respect• Less focus on self-interest, moreLess focus on self-interest, more on goals ofon goals of the groupthe group

Phase 2Phase 2

Phase 3Graen & Uhl-Bien (1995)

Mature PartnershipMature Partnership• Marked by high-quality LMX exchangesMarked by high-quality LMX exchanges• Experience high degree of mutual trust, Experience high degree of mutual trust, respect, and obligation toward one anotherrespect, and obligation toward one another• Tested relationship that is dependableTested relationship that is dependable• High degree of reciprocity between leader andHigh degree of reciprocity between leader and subordinatesubordinate• May depend on each other for favors and May depend on each other for favors and special assistancespecial assistance• Highly developed patterns of relating that Highly developed patterns of relating that produce positive outcomesproduce positive outcomes

Phase 3Phase 3

LMX Theory Approach

Essential to recognize existence Essential to recognize existence of in-groups & out-groupsof in-groups & out-groups

Significant differences in how Significant differences in how goals are accomplished using in-goals are accomplished using in-groups vs. out-groupsgroups vs. out-groups

Relevant differences in in-group Relevant differences in in-group vs. out-group behaviorsvs. out-group behaviors

Best understood within the Best understood within the Leadership Making ModelLeadership Making Model Leader forms special Leader forms special

relationship with each relationship with each subordinatesubordinate

Leader should offer each Leader should offer each subordinate an opportunity subordinate an opportunity for new for new roles/responsibilitiesroles/responsibilities

Leader should nurture Leader should nurture high-quality exchanges high-quality exchanges with all subordinateswith all subordinates

Rather than concentrating Rather than concentrating on differences, leader on differences, leader should focus on ways to should focus on ways to build trustbuild trust

DescriptivDescriptivee

DescriptivDescriptivee

PrescriptivePrescriptivePrescriptivePrescriptive

Strengths

LMX theory LMX theory validatesvalidates our experience of how our experience of how people within organizations relate to each other people within organizations relate to each other and the leaderand the leader

LMX theory is the only leadership approach that LMX theory is the only leadership approach that makes the makes the dyadic relationshipdyadic relationship the centerpiece the centerpiece of the leadership processof the leadership process

LMX theory directs our attention to the importance LMX theory directs our attention to the importance of of communicationcommunication

SolidSolid research foundation on how the practice of research foundation on how the practice of LMX theory is related to positive organizational LMX theory is related to positive organizational outcomesoutcomes

Criticisms Inadvertently supports the development of privileged

groups in the workplace; appears unfair and appears unfair and discriminatorydiscriminatory

The basic theoretical ideasbasic theoretical ideas of LMX are not fully developed

Because of various scales and levels of analysisvarious scales and levels of analysis, measurement of leader-member exchanges is being questioned

Application

Applicable to all levels of management and different types of organizations

Directs managers to assess their leadership from a relationship perspective

Sensitizes managers to how in-groups and out-groups develop within their work unit

Can be used to explain how individuals create leadership networks throughout an organization

Model of Transformational LeadershipBass (1985)

TL motivates followers beyond the expected by:TL motivates followers beyond the expected by: raising consciousness about the value and importance of specific and idealized goals transcending self-interest for the good of the organization addressing higher-level needs

TransformationalTransformational

LeadershipLeadership

TransactionalTransactional

LeadershipLeadership

Laissez-FaireLaissez-Faire

LeadershipLeadership

Transformational Leadership FactorsTra

nsfo

rmati

on

aTra

nsfo

rmati

on

all

Factor 1Factor 1Idealized InfluenceIdealized Influence

CharismaCharisma

Factor 2Factor 2InspirationalInspirationalMotivationalMotivational

Factor 3Factor 3IntellectualIntellectualStimulationStimulation

Factor 4Factor 4IndividualizedIndividualizedConsiderationConsideration

Tra

nsacti

on

al

Tra

nsacti

on

al

Factor 5Factor 5Contingent RewardContingent Reward

ConstructiveConstructiveTransactionsTransactions

Factor 6Factor 6Mgmt. by ExceptionMgmt. by Exception

Active & PassiveActive & PassiveCorrective TransactionsCorrective Transactions

Lassie

z-F

air

eLassie

z-F

air

e

Factor 7Factor 7Laissez-FaireLaissez-Faire

NontransactionalNontransactional

Leaders who exhibit TL:Leaders who exhibit TL: have a strong set of values & idealshave a strong set of values & ideals are effective in motivating followers to supportare effective in motivating followers to support greater good over self-interest greater good over self-interest

Transformational Leadership FactorsThe 4 “I”s

Idealized Idealized InfluenceInfluence

Describes leaders who act as strong role models for followersDescribes leaders who act as strong role models for followers

Inspirational Inspirational MotivationMotivation

Leaders who communicate high expectations to followers, inspiring Leaders who communicate high expectations to followers, inspiring them through motivation to commitment and engagement in the them through motivation to commitment and engagement in the shared vision of the organizationshared vision of the organization

Intellectual Intellectual StimulationStimulation

Stimulates followers to be creative and innovative; challengesStimulates followers to be creative and innovative; challengestheir own beliefs and values and those of leader and organizationtheir own beliefs and values and those of leader and organization

IndividualizedIndividualizedConsiderationConsideration

Leaders who provide a supportive climate in which they listen carefullyLeaders who provide a supportive climate in which they listen carefullyto the needs of followersto the needs of followers

Transactional Leadership Factors

The exchange process between leaders and followers in which effort byThe exchange process between leaders and followers in which effort byfollowers is exchanged for specified rewardsfollowers is exchanged for specified rewards

Leadership that involves corrective criticism, negative feedback, and Leadership that involves corrective criticism, negative feedback, and negative reinforcementnegative reinforcement• Two formsTwo forms

• Active Active - Watches follower closely to identify mistakes/rule violations- Watches follower closely to identify mistakes/rule violations• PassivePassive - Intervenes only after standards have not been met or - Intervenes only after standards have not been met or problems have arisenproblems have arisen

Contingent Contingent RewardReward

Management by Management by ExceptionException

Nonleadership Factor

The absence of leadership. A hands-off, let-things-ride The absence of leadership. A hands-off, let-things-ride approach. Refers to a leader who abdicates responsibility, approach. Refers to a leader who abdicates responsibility, delays decisions, gives no feedback, and makes little effort delays decisions, gives no feedback, and makes little effort to help followers satisfy their needs.to help followers satisfy their needs.

Laissez-FaireLaissez-Faire

Transformational Leadership Approach

TLs empower and nurture TLs empower and nurture followersfollowers

TLs stimulate change by TLs stimulate change by becoming strong role models becoming strong role models for followersfor followers

TLs commonly create a visionTLs commonly create a vision TLs act as change agentsTLs act as change agents TLs are social architectsTLs are social architects

Describes how leaders Describes how leaders can initiate, develop, and can initiate, develop, and carry out significant carry out significant changes in organizationschanges in organizations

Focus of Focus of Transformational Transformational

LeadersLeaders

Focus of Focus of Transformational Transformational

LeadersLeadersOverall ScopeOverall ScopeOverall ScopeOverall Scope

Strengths Broadly researchedBroadly researched.. TL has been widely researched, including a large body TL has been widely researched, including a large body

of qualitative research centering on prominent leaders and CEOs in major of qualitative research centering on prominent leaders and CEOs in major firms.firms.

Intuitive appeal.Intuitive appeal. People are attracted to TL because it makes sense to them.People are attracted to TL because it makes sense to them. Process-focused.Process-focused. TL treats leadership as a process occurring between TL treats leadership as a process occurring between

followers and leaders.followers and leaders. Expansive leadership view.Expansive leadership view. TL provides a broader view of leadership that TL provides a broader view of leadership that

augments other leadership models.augments other leadership models. Emphasizes follower.Emphasizes follower. TL emphasizes followers’ needs, values, and morals.TL emphasizes followers’ needs, values, and morals. Effectiveness.Effectiveness. Evidence supports that TL is an effective form of leadership.Evidence supports that TL is an effective form of leadership.

Criticisms

Lacks conceptualconceptual clarity Dimensions are not clearly delimited Parameters of TL overlap with similar conceptualizations of leadership

Measurement Measurement questioned Validity of MLQ not fully established Some transformational factors are not unique solely to the transformational model

TL treats leadership more as a personality trait or predisposition than a behaviorbehavior that can be taught

TL is elitist elitist and antidemocraticantidemocratic

Suffers from heroic leadershipheroic leadership bias

TL is based primarily on qualitativequalitative data

Has the potential to be abusedabused

Application Provides a general way of thinking about

leadership that stresses ideals, inspiration, innovations, and individual concerns

Can be taught to individuals at all levels of the organization

Able to positively impact a firm’s performance

May be used as a tool in recruitment, selection, promotion, and training development

Can be used to improve team development, decision-making groups, quality initiatives, and reorganizations

The MLQ helps leaders to target areas of leadership improvement