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Seminar 9* Defining Leadership- Process whereby an individual influences others to achieve a common goal.- Aspects of leadership includes:

• Creating and communicating a vision• Influencing others through use of power (5 Bases of power)• Motivating task behavior in pursuit of shared objectives• Establishing and maintaining supportive group culture • Empowering others (linked to delegation)• Clarifying roles and niche in marketplace• Making tough decisions with limited information

* Leaders versus Managers- Leaders do the right things, managers do things right- Good leaders might not be good manager and vice versa (E.g. Jetblue CEO let go as too entrepreneurial)- Comparison (P Lorenzi, 2004)

* Trait Approach to Leadershipa) ‘Great Man’ Approach (1930s- 1950s: innate and predisposed ability)- Attempt to identify relatively stable, enduring dispositional attributes that leaders possess- Stogdill’s (1948) and Manns (1959) Findings: Five Main Traits

1. Intelligence (eg Citi Ex CEO Vikram Pandit Thought Process)2. Dominance 3. Self- Confidence (Eg Julius Caesar)4. Level of Energy and Activity 5. Task Relevant Knowledge

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b) Implicit Leadership Theory- People have beliefs about how leaders should behave and what they should do for their followers- Leadership prototype is a mental representation of the traits and behaviors that people believe are possessed by leaders- People tend to perceive someone as leader when he conforms to these prototypes or evaluate them as more effective leaders- Leadership prototype that includes traits such as intelligence, masculinity, and dominance. But similar studies from other countries reveal that leadership prototypes are different. (R G Lord, 1986)- A set of global leadership prototypes has not yet been identified.- Kouzes and Posner’s (2009) Research: found honesty, forward- looking, inspiring and competent as most important. (E.g. Obama demonstrated honesty when he admitted to incorrectly appointment)c) Emotional Intelligence- Manage oneself and one’s relationships in mature and constructive ways. - However, there is not enough evidence to support his conclusion yet- E.g. Obama balancing between races and politics during his presidency- Key Positive Leadership Traits (B M Bass, 2008)Intelligence Ability to think strategically, reason analytically, and

exercise good judgment

Self-confidence Allows leaders to gain trust by being sure of their own actions and not being defensive about making mistakes.

Determination Characterized by high energy, motivation, need for achievement.

Honesty and integrity

Being truthful and exhibiting a consistency between words and actions.

Sociability Being open, honest, competent, forward-looking, and inspiring.

Extroversion Deriving energy from others.Conscientiousness

Being responsible.

Problem solving skills

Ability to identify causes of problems and generate appropriate solutions

- Ineffective Leadership traits (Barbara Kellerman Research, HBR, 2004)Incompetent Lack of skill or will to create positive change (James Cayne of Bear

Sterns playing golf as company collapses)Rigid Stiff and unyielding, unable or unwilling to adapt to new ideas

(Richard Fuld of Lehman Brother ‘too big to fail)Intemperate Lacks self controlCorrupt Lie, cheat, steal – put self-interest ahead of public interest (the

Bernard Ebbers, WorldCom accounting fraud, 2006)Callous Uncaring and unkind, needs, wants and desires of most members

are ignored or discounted (Steve job handicap parking space)Insular Disregard welfare of others outside the group they are directly

responsible for (Philip Schoonover, CEO Circuit City fire 3400 of his most experience workers as they make too much money)

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Evil Commit atrocities, use pain as an instrument of power- Practical Implications of Trait Theory+ Personal Implications> Predispositions: Personality tests and other trait assessments will reveal predispositions > Development Plans: However, targeted plans aimed at adapting and learning new behaviors can be effective ways to develop leadership talent+ Organizational Implications:> Use valid measures of job-related traits to select employees> Create management development programs (E.g. PWC, Loews Hotel send managers to attend coaching session and stretch assignments)

* Behavioral Style Theory- Arise in WW2 as trait theory unable to explain leadership effectiveness and the human relations movement, an outgrowth of the Hawthorne studies.a) Ohio State Studies

+ Meta-analysis in 2004 of 130 studies with > 20000 individuals: found consideration and initiating structure to be positively related to leadership outcome. Performed more effectively for structure though prefer consideration.+ Associated with follower’s satisfaction, motivation and performance- Key Takeaways from Behavioral Style (RC Hoffman, 2007) + Challenged assumption that leaders are born, not made leaders can be systematically improved and not made. + Defined “leadership” in actual behaviors + There is no one best style of leadership – depends on the situation For example, more structure is often necessary when employees are dealing with role ambiguity admit need to use situational approach + An “effective” leader behavior can be misused and have negative consequences for employeesFor example, showing caring and empathy regularly without action to help change course or fix a problem can be very frustrating for employees.

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* Contingency (Situational) Approaches to Leadership- The findings about leadership traits and behavioral styles were inconsistent, researchers turned their attention to developing the theory that leadership traits and behaviors that will lead to success are contingent upon the situation.- Proposed that effectiveness of a particular style depends on situation - Fieldler’s Contingency Theory (1964)+ Premise: There must be a match between the leader’s style and the demands of the situation for the leader to be effective. + Assumption: Leadership style does not change. Either task—focus on accomplishing goals or relationship motivated (E.g. LKY) — developing positive relationship with others. If mismatch occurs between style and situation, change the situation. (E.g. Wee Kim Wee)+ Leadership style identified thru least preferred co-worker scale (LPC)+ Situational Control > Amount of Control and Influence that leaders have in her or his immediate work environment. > High control leader’s decisions will produce predictable results because of his ability to influence work outcomes while low control implies the opposite.> Three Dimensions of Situational Controls:1. Leaders-Members Relations-- the degree to which the leader has the support, loyalty, and trust of the work group.2. Task Structure-- the degree to which structure is contained within work tasks. 3. Position Power-- the degree to which the leader has formal power.+ Representation of Fiedler’s Contingency Model

- Key takeaways+ Not enough to consider just traits and behaviors, but situational factors are also important in determining leadership effectiveness.+ Organizations may want to consider the match between the leader’s style and leadership situation they are placed in. But should also realize that poor leadership could be caused by a poor fit between the leader and the situation and means that the person could be successful as a leader under a different set of conditions.+ In the war for talent, organizations may not want to completely discount a leader who fails in a particular situation because they may be able to contribute to the organization in other ways.

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+Finally, leaders should change their style given the situation as there is no universally effective style – organizations should provide training/mentoring to increase leaders’ adaptability* House’s Revised Path-Goal Theory (1996) - Linked to expectancy theory: motivation to exert effort increases as one’s effortperformance outcome expectations improve.- Motivational to the extent that (1) reduces roadblocks that interferes with goal accomplishment improve expectancy as employees now able to see how effort can lead to actual performance goals (2) provides guidance and support needed by employees improve instrumentality thru guidance (3) ties meaningful rewards to goal accomplishment improve valences.- Graphical Representation of House Path Goal Theory

- Key Takeaways of Path-Goal Theory+ Effective leaders possess and use more than one style of leadership Managers should familiarize themselves with new behaviors and try them based on situational demands (E.g. Bob Iger, CEO of Walt Disney)+ Leaders should clarify paths to goal accomplishment and remove obstacles that may impede employee’s goal achievement+ Employee and environmental characteristics impact the type of leadership style that will be most effective and hence need to be evaluated and then leaders should adjust their style of leadership accordingly- Applying Situational TheoriesStep 1: Identify important outcomes: What are you trying to achieve? Step 2: Identify relevant leadership types/behaviors: identify behavior appropriate for situation and select only one or two (don’t use all) Step 3: Identify situational conditions. Practical considerations and contingency factors that affect your leadership approach.Step 4: Match leadership to the conditions at hand: There are several different situational conditions as well as leadership behaviors and styles. Use your

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knowledge of these styles and behaviors and the elements of the situation to choose the best match.Step 5: Determine how to make the match: change leader or change leader’s style* Transactional versus Transformational Leadership- Transactional Leadership+ Transactional Leadership: focuses on clarifying employees’ roles and providing rewards contingent on performance > Appeals to what followers want (rewards) extrinsic motivation> Transactional leaders set goals, monitor progress toward goal achievement, and rewards and punish people based on their level of goal accomplishment. >E.g. Joseph McCarthy - former Wisconsin state senator punished people for deviation from the rules and rewarded followers for bringing him accused communist infiltrators.- Transformational Leadership+ Transformational transforms employees to pursue organizational goals over self-interest + Appeals to followers’ values, beliefs, self-concept foster higher levels of intrinsic motivation, trust, commitment and loyalty than transactional+ However, transactional still essential prerequisite, hence to enhance performance one will use transformational to augment transactional. (The Bass Handbook of Leadership)+ How followers are transformed? (D A Waldman, 1993)

> Inspirational Motivation: Leaders come up with an attractive vision and use emotional arguments and enthusiasm to spread this vision into their subordinates. Foster commitment, energize and create meaning(E.g. M.L.K ‘ I Have a Dream’ speech)> Idealized Influence: Such leaders always win the trust and respect of their followers through their action. They typically place their followers needs over their own, sacrifice their personal gains for them, and demonstrate high standards of ethical conduct. Common goals (E.g. Mother Theresa not only advocated people to be more helpful, but took it upon herself to tend to needy) >Individualized Consideration: Leaders might act as mentors and spend time talking with their surbodinates about their interests and try to identify new learning opportunities for them. They show interest in people by remembering

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their names and previous conversations. They treat others with respect and tell them the truth with compassion (E.g. Rose Perot organized and sponsored rescue of own employees held hostage in Iranian Revolution)>Intellectual Stimulation: Leaders encourage employees to question the status quo and seek innovative and creative solutions. Focus on the “what” in problems and do not focus on the blaming part of it. They have no hesitation in discarding an old practice set by them if it is found ineffective. (E.g. Pixar, where managers’ jobs are not to prevent risk but to ensure that the company can recover should they fail.)- Implications and Takeaways1) Best leaders incorporate both form and avoid laissez-faire style2) Transformational not only influences individuals but also affect group dynamics and work-unit outcomes (Meta Analysis by T A Judge, 2004)3) Employees at any level can be trained to be more transactional and transformational need for leadership development program (A J Towler, 2003)4) Transformational Leaders can be ethical or unethical need for monitoring

* Leadership-Member Exchange Model (LMX)- Focuses on quality of dyadic relationship between managers and direct reports- Assumption: Leaders do not treat all employees in the same way – it is based on their one-on-one relationship. Caused by leader’s attempt to delegate and assign work roles- There are 2 possible outcome of LMX : (F Dansereau Jr, 1975)a) In-group exchange: a partnership characterized by mutual trust, respect and likingb) Out-group exchange: a partnership characterized by alack of mutual trust, respect and liking - Positive LMX (in-group exchange) is associated with OCB, lower turnover and better career outcome (Meta-analysis of 50 studies of >9000 people: R Ilies, 2007)- Demographic and personality similarity attributed to positive LMX (J B Bernerth, 2008)- Implications and Takeaways> Suggested that leaders develop high-quality relationships with as many subordinates as possible. They should strive to have as large an in-group and as small an out-group as possible (George & Jones, 2008).> Establish high performance expectation that foster good LMX> As demographic and personality similiarity associated with positive LMX avoid creating homogenous work environement that might not cater to all

* Shared Leadership- Based on ideas that people need to share information and collaborate to get things done at work need to adopt horizontal process- Defined as a dynamic interactive influence process among individuals in groups for which the objective is to lead one another to the achievement of group or organizational goals or both.- E.g. Adobe and Goldman Sachs adopt both COO and CEO for varied abilities- Works particularly well for knowledge work where voluntary contributions of intellectual capital are required from professionals. This is a departure from the hierarchical structure of many organizations and, therefore, requires a

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collaborative culture and a system for rewarding and recognizing contributions of individuals as well as teams.

- Considerations by Manager: (C L Pearce, 2004)

* Servant-Leadership (Robert Greenleaf, 1970)- Focuses on increased service to others rather than to one’s self interest less likely to engage in self-serving reactions that hurt others (E.g. Jack Windolf of Bollinger Insureance Solution distribution of bonuses) - Can help to increase job satisfaction, job commitment and lower counter productive work behavior (R C Liden, 2008)- Characteristics of Servant-LeadersListening Focus on listening to idenfy and clarify needs and desireEmpathy Empathize with other’s feelings and emotionsHealing Strive to make themselves and other whole in facing setbacksAwareness Self aware of their strengths and limitationsPersuasion Rely on persuasion in decision making and influencing othersConceptualize Seek appropriate balance between short term and long termForesight Foresee future outcome assoc. with current course of actionStewardship Assume they are steward of people and resources they manageGrowth of Others

Committed to people beyond their immediate work role

Building Community

Strive to create a sense of community within and outside work organization

* Followers- 3 Types: a) Helpers (Support) b) Independents (distance) c) Rebel (diverge)- Follows want leaders who: (R Goffee, 2001)1) Significance: Emphasize the meaningfulness of the work one does

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2) Community: Provide a sense of unity and encourage people to treat others with respect and dignity3) Excitement: Promote feelings of engagement and energy

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