Module 3

Module Three: Leading andInfluencing

“To expect every manager to be a leader is futile. There are, in a developed society, thousands, if not millions, of managers – and leadership is always the rare exception and confined to a few individuals.”

Peter Drucker

“Business needs to relearn its limits” and business schools should revise their stated mission of educating leaders for the world at large. “Harvard Business School needs only to promise to educate students in the process and management of business.”

Philip Delves Broughton

Chapter 8: PowerPoint 8.2

What is Leadership

Leadership

Developing ideas and vision

Making hard decisions

about human and other resources

Living by values that

support those ideas

and that visionInfluencing others to

embrace them in their own behaviors

The Nature of Leadership

• Leadership– A social (interpersonal) influence between two

or more persons who depend on each other to attain certain mutual goals in a group situation.

The Nature of Leadership

• Leader versus manager– Leadership and management are not

interchangeable.– Leadership is the accepted use of

organizationally-derived and/or personal power to influence and motivate subordinates.

– Management is process-oriented (planning, organizing, directing, and controlling) supervisory behavior.

Leaders vs. Managers

13-6Copyright© 2011 Pearson Educatio, Inc. Publishing as

Prentice Hall

The LeadershipProcess

TheLeadership

Process

Consequences(e.g., Suspicion,

Trust, Dislike,Affection)

Context Followers

Leader

FIGURE 11FIGURE 11–1–1

The Leadership Process (cont’d)

• Leadership is a function of an interaction between the leader, the follower, and the situation.– L = ƒ [(Person)(Follower)(Situation)]

• Leader-member exchange (LMX) theoryA theory that describes the different kinds of relationships that may develop between a leader and a follower and what the leader and the follower give to and receive back from the relationship.

Leadership Process


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Leader-Member Exchange Model


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The Leader-Follower Power Relationship

Follower Compliance• Alienation & resistance• Calculative compliance• Identification• Internalization

Group Effectiveness• Follower satisfaction• Follower motivation• Follower performance

LeaderInfluence/Power Tactic(e.g., Use of Rationality)

—commitment


Effective leadership is more likely to occur when the Effective leadership is more likely to occur when the leader’s influence flows out of expert and/or leader’s influence flows out of expert and/or referent power.referent power.

Early Approaches to Leadership• The trait approach

seeks to identify personal characteristics that effective leaders possess.

• The behavior approach focuses on the behaviors that effective leaders engage in.

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Traits Model of Leadership

Intelligence

Achievement drive

IntegrityMaturity

and breadth

Traits ofmost

successfulleaders

The Trait Approach to Leadership

• Great man theory of leadership– The belief that some people are born to be

leaders and others are not.• Leadership trait research

– Physiological, demographic, personality, intellective, task-related, and social characteristics of effective leaders.

– “The right stuff”?

Leadership Trait Research (cont’d)

• Core characteristics of leaders (Locke)– Drive—high level of effort and desire for achievement– Leadership motivation—intense desire to lead others– Honesty and integrity—commitment to the truth– Self-confidence—assurance in self, ideas, and ability– Cognitive ability—conceptually skilled and possessing

good judgment– Knowledge of business—high degree of

understanding about the company, industry, and technical matters

– Other traits—charisma, creativity/originality, and flexibility/adaptiveness

The Trait Approach to Leadership (cont’d)

• Other leader traits– Sex and gender role

• Males (or persons with masculine characteristics) emerge as leaders more frequently than females.

• Men are more likely to be task-oriented and to adopt autocratic/directive leadership styles.

• Women tend to be more interpersonal and relationship-oriented, and to

use a democratic/participative leadership style.

In fact, research shows:• Male and female leaders have similar task-

and people-oriented leadership.• Men do not engage in more initiating

structure and women do not engage in more consideration.

• Women do tend to have more democratic leadership styles, whereas men tend to be more autocratic.

• Women rated less favorably than equivalent male leaders due to stereotyping.

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Inadequacies of the Traits Model of Leadership

No consistent patterns between traits and leader effectiveness

Physical characteristics are more likely related to situational factors

Leadership is more complex than the trait approach assumes

Behavioral Leadership Styles

• Theory X and Theory Y leaders– Theory X leaders

• Assume workers dislike work and are incapable of self-direction and self-control.

• Use a highly controlling leadership style.– Theory Y leaders

• Assume workers enjoy work and are capable of self-direction and self-control.

• Use an involvement-oriented approach to leadership.

Leadership BehaviorsAutocratic-Delegation Continuum


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Tannenbaum and Schmidt’s Leadership Continuum

Managermakesdecision andannounces it.

Autocratic–leader isdominantin makingdecisions.

Free-Rein–followers arefree to choose,leader becomespassive.

Manager“sells”

decision.

Managerpresentsideas andinvitesquestions.

Managerpresentstentativedecisionsubject tochange.

Managerpresentsproblem, getssuggestions,makes decision.

Managerdefineslimits,asks groupto makedecision.

Managerpermitssubordinatesto functionwithin limitsdefined bysuperior.

Use of Authorityby the Manager Area of Freedom

for Subordinates

Boss-Centered Leadership

Participation

Subordinate-Centered Leadership

Low High

FIGURE 11FIGURE 11–3–3Source: Modified from R. Tannenbaum and W. H. Schmidt. May–June 1971. How to choose a leadership pattern. Harvard Business Review, 167.

Directive and Permissive Leadership Styles

• Leadership Behavior and the Uses of PowerLow

Low

HighHigh

Amount ofLeaderDirection

Amount of Employee Participation in Decision Making

Leader Decision-Making Power: HighLeader Directing Power: High

DirectiveAutocrat

1

Leader Decision-Making Power: LowLeader Directing Power: High

DirectiveDemocrat

3

Leader Decision-Making Power: HighLeader Directing Power: Low

PermissiveAutocrat

2

Leader Decision-Making Power: LowLeader Directing Power: Low

PermissiveDemocrat

4

FIGURE 11FIGURE 11–4–4Source: Modified from J. P. Muczyk and B. C. Reimann. 1987. The case for directive leadership. Academy of Management Executive, 1:304.


Behavioral Model of Leadership

Focuses on what leaders actually do and how they do it

ConsiderationExtent to which the leader has relationships with

subordinates that are characterized by mutual trust, two-way communication, respect for employees’ ideas, and empathy for their feelings

Initiating structure

Extent to which a leader defines and prescribes the roles of subordinates in order to set and accomplish goals in their areas of responsibility

Leadership Behavior Dimensions


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Copyright © 2002 by South-Western

11–25

Behavioral Model of Leadership (cont’d)

• The University of Michigan studies identified the behavioral characteristics of effective leaders:– Job-centered behaviors— supervisory

activities such as planning, scheduling, and coordinating work activities.

– Employee member-centered behaviors—consideration and support for organizational members.


When Is Consideration Effective?

Followers desire participative leadership

Team members must learn

something new

Followers feel minimal status

differences should exist

between them and the leader

Involvement in decision making affects employees’

job performance

Routine tasks prevent job satisfaction


When Is Initiating Structure Effective?

Output pressure is imposed by someone other than the

leader

Employees rely on leader for direction and information

More than 12 employees report

to the leader

Employees are predisposed toward directive leadership

Task satisfies employees

The Managerial Grid


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Blake and

Mouton’s Managerial

Grid®


1,9Accommodating(Yield and Comply)I support results that establish and reinforce harmony. I generate enthusiasm by focusing on positive and pleasing aspects of work.

9,9Sound(Contribute and Commit)I support team action in a way that invites involvement and commitment. I explore all facts and alternative views to reach a shared understanding of the best solution.

1,1Indifferent (Evade and Elude)I distance myself from taking active responsibility for results to avoid getting entangled in problems. If forced, I take a passive or supportive position.

5,5Status Quo (Balance and Compromise)I endorse results that are popular but caution against taking unnecessary risk. I test my opinions with others involved to assure ongoing acceptability.

9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

Concern for Production

High

Low

Low High

Con

cern

for P

eopl

e

Source: Adapted from R. McKee and B. Carlson. 1999. The Power to Change, p.16. Copyright © 1999 by Grid International, Inc. Reproduced by permission of the owners.

9,1Controlling(Direct and Dominate)I expect results and take control by clearly stating a course of action. I enforce rules that sustain high results and do not permit deviation.

Fiedler’s Contingency (LPC) Theory

• The theory that leader effectiveness is determined by both the personal characteristics of leaders and by the situation in which leaders find themselves.

• Sheds light on two important issues:– Why, in a particular situation, some leaders will be

effective and other leaders with equally good credentials will be ineffective.

– Why a particular leader may be effective in one situation but not in another.


• According to Fiedler, a leader’s style is an enduring personal characteristic. Fiedler created the least preferred coworker (LPC) scale to measure it.

• Leaders who are relationship-oriented want to be liked by and to get along well with their subordinates.– Also called High LPC leaders because they tend to

describe their LPC in relatively positive terms.• Leaders who are task-oriented want their

subordinates to perform at a high level and accomplish all of their assigned tasks.– Also called Low LPC leaders because they tend to

describe their LPC in relatively negative terms.


• Contingency theory of leadership (cont’d)– Least preferred co-worker (LPC) score

• High LPC scores = relationship-oriented leaders.• Low LPC scores = task-oriented leaders.

– Situational favorableness• Favorable situations allow leaders more control/

influence over the group process.– Leader member relations, task structure, leader position

power


• According to Fiedler, three characteristics determine how favorable situations are for leading.

• Leader-Member Relations: The relationship between a leader and his or her followers.• Situation is favorable for leading when relations are

good.


• Task Structure: The extent to which the work to be performed by a group is clearly defined.• Situation is favorable for leading when structure is

high.• Position Power: The amount of formal

authority a leader has.• Situation is favorable for leading when power is high.

Fiedler’s Contingency Model of Leader-Situation Matches

Performance

Favorable

Good

PoorModerate Unfavorable

Good Good Good Good Poor Poor Poor Poor

High High Low Low High High Low Low

Strong Weak Strong Weak Strong Weak Strong Weak

Leader-MemberRelations

Task Structure

LeaderPosition Power

1 2 3 4 5 6 7 8

Task Motivated Relationship Motivated

FIGURE 11FIGURE 11–6–6Source: Adapted from F. E. Fiedler and M. M. Chemers. 1974. Leadership and effective management. Glenview, IL: Scott, Foresman.

LPC Contingency Theory


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Matching Style and Situation• High LPC leaders are most

effective in situations that are moderately favorable for leading.– Octants IV, V, VI, and VII

• Low LPC leaders are most effective in situations that are very favorable or very unfavorable for leading.– Octants I, II, III, and VIII

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Situational (Contingency) Approaches to Leadership

(cont’d)• Path-Goal theory

– Leadership is path- and goal-oriented.• Effective leaders provide organizational members

with a path to a valued goal.• Different leadership styles are effective as a

function of the task confronting the group.


(cont’d)Path-Goal theory• Has roots in Expectancy Theory• Effective leaders influence employee satisfaction by

strengthening the performance to outcome expectancy and valences of those outcomes

• Effective leaders provide information and support to strengthen the effort to performance expectancy

• Generally applies to dyadic relations – later extended to apply to work units


(cont’d)Path-Goal theory – 4 types of

behaviors• Directive behavior lets subordinates know what tasks

need to be performed and how they should be performed.

• Supportive behavior lets subordinates know that their leader cares about their well-being and is looking out for them.


(cont’d)Path-Goal theory – 4 types of

behaviors• Participative behavior enables subordinates to be

involved in making decisions that affect them.• Achievement-oriented behavior pushes

subordinates to do their best. Includes setting difficult goals for followers, expecting high performance, and expressing confidence.


(cont’d)Contingencies of path-goal theory:

Employee contingencies – skill and experiences and locus of control

Environmental contingencies – task structure and team dynamics

The Path-Goal Leadership Model

Subordinate OutcomesMotivationSatisfactionPerformance

Leader BehaviorSupportiveDirectiveParticipativeAchievement-Oriented

Situational ForcesWork EnvironmentSubordinate Characteristics

Combineto Influence


Path Goal Theory


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Hersey Blanchard Model

Task behavior The extent to which a leader uses one way communication, spells

out duties, and tells followers where, when, and how to do it

Relationship behavior The extent to which a leader uses two-way communication,

listens, encourages, involves followers in decision making, and gives emotional support

Follower readiness Ability to set high but attainable task-related goals and a

willingness to accept responsibility for reaching them

The style of leadership should be matched to the level of readiness of the followers


Use of Styles in Situational Leadership Model

Delegating Style Telling Style

Participating Style Selling Style

Use when follower readiness is high

Use when follower readiness is low

Use when follower readiness is moderately high

Use when follower readiness is moderately low


The Situation Leadership® Model (Figure 8.2)(Part I)

FOLLOWER READINESS

High

R4

Able andwilling orconfident

ModerateR3

Able butunwilling or

insecure

R2

Unable butwilling orconfident

Low

R1

Unable andunwilling or

insecure

FollowerDirected

LeaderDirected

Source: P. Hersey, et al. Management of Organizational Behavior: Leading Human Resources, 8th ed. (Upper Saddle River, NJ: Prentice Hall, 2001), p. 182. Copyright © 2001, Center for Leadership Studies, Escondido, CA. Used with permission.


The Situation Leadership® Model (Figure 8.2)(Part II)

LEADERSHIP BEHAVIOR

S3 S2

Share ideasand facilitatein decisionmaking

Explain decisions and provide opportunity for clarification

Low RelLow Task

High TaskLow RelS4

Turn over responsibility for decisions and imple-mentation

S1Provide specific instructions and closely supervise performance

(low) (high)Task Behavior(Directive Behavior)

High RelLow Task

High TaskHigh Rel

Rel

atio

nshi

p B

ehav

ior

(Sup

porti

ve B

ehav

ior)

(low

)(h

igh)

®

Situational Leadership Theory


Prentice Hall


Implications of Situational Leadership Model

Easily understood model with clear recommendations

Must constantly monitor employees’ readiness levels

Style should be changed to fit changing situations


Limitations of Situational Leadership Model

Difficulty in addressing different readiness levels in a team situation

Follower readiness is the only contingency variable used

Some leaders may not be able to easily adapt their styles to fit the situation

Not strongly supported by scientific research


Learning Objectives for Leading Effectively: Contemporary Developments

State the characteristics of transactionalleadership.

Describe the features of charismaticleadership.

Discuss the attributes of authenticleadership.

Explain the nature of transformationalleadership.


Transactional Leadership: Interrelated Components

Providescontingent

rewards

Emphasizes passive

managementby exception

Exhibitsactive management

by exception

Transactional Leadership


Practices of Effective Transactional Leaders

They ask: “What needs to be done?”

They ask: “What is right for the organization?

They develop action plans.

They take responsibility for decisions.

They take responsibility for communicating.


Charismatic

leadership

Reflects strengt

h

Extraordinary personal

qualities

Exhibitsdesiredbehavio

rs

Emphasizes shared vision and

valuesPromotes

sharedidentity

Model of Charismatic Leadership


Implications for Leaders

Gains power because their followers identify with them

Socialized charismatic leader—possesses an egalitarian and empowering personality

Rare in business

Communication competency is critical

Personalized charismatic leader—possesses a dominant Machiavellian, and self-centered personality


Authentic

Leadership

Raises optimis

m

Stimulatesfollower

identification

Showspositiveemotion

s

Creates

hope

Reflectstrust

Model of Authentic Leadership

Source: Based on Avolio, B.J., Gardner, W.L., Walumbwa, F.O., Luthans, F., and May, D.R. Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviors. Leadership Quarterly, 2004, 15, 801-823.



Influence followers’ attitudes and behaviors through identification, hope, trust, positive emotions, and optimism.

Focus on being a “servant” to followers and other stakeholders

Knows oneself—strengths and limitations

Ethics and open communication are central


Model of Transformational Leadership

Transformational

leadership

Shows individualize

dconsideration

Providesinspirationalmotivation

Fostersidealizedinfluence

Createsintellectualstimulation


Displays great enthusiasm and optimism

Gets followers involved in and committed to a vision

Inspires others by what they say and do

Inspirational Motivation


Urges followers to question assumptions,explore new methods and ideas, and takenew approaches to old situations

Actively seeks out new ideas and creativesolutions from followers

Doesn’t criticize followers’ ideas just becausethey differ from those of the leader

Intellectual Stimulation


Relatively high tolerance for mistakes madeby conscientious followers

Focuses on the “what” in problems ratherthan the “who” to blame

Willing to abandon systems and practicesthat are no longer useful

Intellectual Stimulation(Continued)

Views risk taking as necessary and desirablefor long-term development and success


Idealized Influence

Often considers the needs and interests of their followers before their own

May willingly sacrifice personal gain

Can be trusted

Demonstrate high ethical and moral standards


Idealized Influence (Continued)

Can be very direct and challenging to some followers and empathetic and supportive of others

Minimizes the use of power for personal gain

Uses all power sources to move individuals and teams toward a vision and its goals


Individualized Consideration

May act as coach, mentor, teacher, facilitator, confidant,and counselor

Embraces and rewards individual differences to enhancecreativity and innovation

Encourages open dialogue with followers

Empowers followers to make decisions

Monitors followers to determine if they need additionalsupport or direction


Needed more than ever at all levels

Encourages reasonable risk taking

Knows when to reject traditional ways of doing things


Vital to handling difficult and complex organizational threats, opportunities, and weaknesses

Substitutes and Neutralizers

• Leadership Substitute: Something that acts in place of a formal leader and makes leadership unnecessary (functional).– Intrinsic motivation of subordinates– Skill level of subordinates and nature of work

Substitutes and Neutralizers

• Leadership Neutralizer: Something that prevents a leader from having any influence and negates a leader’s efforts (dysfunctional).– Lack of ability to reward/punish– Physical distance between leader and

workers

Substitutes for Leadership Individual characteristics

Knowledge Commitment Experience

Job characteristics• Highly routine• Highly interesting

Organization characteristics• Work norms• Cohesion• Technology


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Substitutes for and Neutralizers of Leader Behavior

Leader Behavior Influenced

Substitute or Neutralizer Supportive Leadership

Instrumental Leadership

A. Subordinate Characteristics: 1. Experience, ability, training Substitute 2. “Professional” orientation Substitute Substitute 3. Indifference toward reward offered by

organization Neutralizer Neutralizer

B. Task Characteristics: 1. Structured, routine, unambiguous task Substitute 2. Feedback provided by task Substitute 3. Intrinsically satisfying task Substitute

Source: Leadership in organizations by G. A. Yuki. Copyright © 1981. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ 07458. TABLE 11TABLE 11–1a–1a

Substitutes for and Neutralizers of Leader Behavior (cont’d)

Leader Behavior Influenced

Substitute or Neutralizer Supportive Leadership

Instrumental Leadership

C. Organization Characteristics: 1. Cohesive work group Substitute Substitute 2. Low position power (leader lacks control

over organizational rewards) Neutralizer Neutralizer

3. Formalization (explicit plans, goals, areas of responsibility)

Substitute

4. Inflexibility (rigid, unyielding rules and procedures)

Neutralizer

5. Leader located apart from subordinates with only limited communication possible

Neutralizer Neutralizer

Source: Leadership in organizations by G. A. Yuki. Copyright © 1981. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ 07458. TABLE 11TABLE 11–1b–1b

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