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

Leader
on leader

Personality Assessments
assessments to find Right people Assumption - will increase organizational effectiveness Specify characteristics/traits for specific positions

Focuses exclusively Organizations use personality

What traits leaders exhibit Who has these traits

Personality assessment measures for fit

Strengths
Intuitively appealing Perception that leaders are different in that they possess special traits People need to view leaders as gifted
Credibility due to a Highlights leadership

component in the leadership process

Deeper level understanding of how leader/personality related to leadership process

Provides benchmarks for

century of research support

what to look for in a leader

Criticisms
Fails to delimit a List of most important

definitive list of leadership traits

leadership traits is highly subjective

Endless lists have emerged

Doesnt take into

Much subjective experience & observations serve as basis for identified leadership traits

account situational effects

Research fails to look at

Leaders in one situation may not be leaders in another situation

traits in relationship to leadership outcomes

Not useful for training &

development

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 Traits
Intelligence

Self-Confidence Determination Integrity Sociability Adaptability

Style Approach Description

Perspective Definition
Comprised of Two

Leader-focused

perspective Emphasis on what leaders do and how they act

Kinds of Behaviors

Task behaviors Facilitate goal accomplishment Relationship behaviors Help subordinates feel comfortable with themselves, each other, and the situation

Style Approach
Focus
Primarily a

Overall Scope
Offers a means of

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

generally assessing the behaviors of leaders

Strengths
Style Approach marked a major 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 leaders style is composed of two major types of behaviors: task and relationship Based on style approach, leaders can assess their actions and determine how to change to improve their leadership style

Criticisms
Research has not adequately demonstrated

how leaders styles are associated with performance outcomes No universal style of leadership that could be effective in most situations Implies that the most effective leadership style is High-High style (i.e., high task/high relationship); research finding support is limited

Leadership as Behavior
100s 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

0.45 0.40 0.35

Low Consideration

Grievance Rate

0.30 0.25 0.20 0.15 0.10 0.05 0.00

Medium Consideration High Consideration

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

Low

Medium

High

Amount of Structure

Contingency Theory Approach

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

Perspective
Contingency theory is a leader-

Definition
Effective leadership is

match theory (Fiedler & Chemers, 1974)

Tries to match leaders to appropriate situations

Leaders effectiveness depends

contingent on matching a leaders style to the right setting

on how well the leaders style fits the context Fiedler et al.s generalizations about which styles of leadership are best and worst are empirically grounded

Leadership Styles
Definition
Leadership styles

Dimension Definitions
Task-motivated leaders -

are described as:

Task motivated Relationship motivated

Concerned primarily with reaching a goal Relationship-motivated leaders Concerned with developing close interpersonal relationships

Leader Style Measurement Scale Least Preferred Co-Worker (LPC) Scale

High = Relationship-motivated leader Low = Task-motivated leader

Situational Variables
Situational Factors Leader-Member Relations Task Structure Position Power Definition
LMR - Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader TS - Concerns the degree to which requirements of a task are clear and spelled out PP - Designates the amount of authority a leader has to reward or punish followers

Determine Favorableness of Situations in Organizations

Contingency Model
LeaderMember Relations
Task Structure

High Low High Low Structure Structure Structure Structure

Strong Weak Strong Weak Strong Weak Strong Weak

Position Power Power Power Power Power Power Power Power Power Preferred 1 2 3 4 5 6 7 8 Low LPCs Low Leadership High LPCs Middle LPCs LPCs Style

Strengths
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. 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 leaders style and the demands of different situations. 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 approach. Contingency theory contends that leaders should not expect to be effective in every situation; thus companies should strive to place leaders in optimal situations according to their leadership style. 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 leaders with particular

leadership styles are more effective in some situations than others (Black Box problem)
Criticism of LPC scale validity as it does not correlate

well with other standard leadership measures

Cumbersome to use in real-world settings Fails to adequately explain what should be done about

a leader/situation mismatch in the workplace

Path-Goal Theory Approach

Perspective
Goal - To enhance employee

Definition
Path-goal theory

performance and satisfaction by focusing on employee motivation Premise - Subordinates will be motivated if they believe: (a) they are capable of performing their work; (b) that their efforts will be rewarded; and (c) that the payoff will be worthwhile Challenge - To use a leadership style that best meets subordinates motivational needs

centers on how leaders motivate subordinates to accomplish designated goals

Conditions of Leadership Motivation

Leadership generates motivation when:
It increases the number and kinds

of payoffs Path to the goal is clear and easily traveled with coaching and direction Obstacles and roadblocks are removed The work itself is personally satisfying

Path-Goal Theory Approach

Focus
Path-goal theory is a

Overall Scope

complex but also pragmatic Path-goal theory provides a set of approach assumptions about how Leaders should choose a leadership style that best fits different leadership the needs of subordinates styles will interact with and their work

subordinate characteristics and the work situation to affect employee motivation

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. Path-goal theory is a

useful theoretical framework for understanding how various leadership behaviors affect the satisfaction of subordinates and their work performance.
Integrates motivation. Path-goal theory attempts to

integrate the motivation principles of expectancy theory into a theory of leadership.

Practical model. Path-goal theory provides a practical

model that underscores and highlights the important ways leaders help subordinates.

Criticisms
Interpreting the meaning of the theory can be confusing 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 support for

path-goal theory.
It fails to adequately explain the relationship between leadership behavior

and worker motivation.

The path-goal theory approach treats leadership as a one-way event in

which the leader affects the subordinate.

Application
PGT offers valuable insights that can

be applied in ongoing settings to improve ones 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

Sources of Power Reward Coercive Legitimate Expert Referent

Resistance Compliance Commitment

Likely Outcomes of Using Power

Base of Power Referent Expert Type of Outcome Compliance Possible Possible Likely Likely Possible

Commitment Likely Likely

Resistance Possible Possible

Legitimate
Reward Coercive

Possible
Possible Very Unlikely

Possible
Possible Likely

LMX Theory Approach Description

Perspective
Development - LMX theory first

Definition
LMX theory

described by Dansereau, Graen, & Haga (1975), Graen & Cashman (1975), and Graen (1976) Revisions - Theory has undergone a number of revisions since its inception and continues to be of interest to researchers Assumption - LMX theory challenges the assumption that leaders treat followers in a collective way.

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

Later Studies
Initial research primarily addressed differences between in-groups and

out-groups; later research addressed how LMX theory was related to organizational effectiveness Researchers (Graen & Uhl-Bien, 1995) found that high-quality leadermember exchanges resulted in:

Less employee turnover More positive performance evaluations Higher frequency of promotions Greater organizational commitment More desirable work assignments Better job attitudes More attention and support from the leader Greater participation Faster career progress

Phases in Leadership Making

Graen & Uhl-Bien (1995)
Phase 1
Stranger Roles Influences Exchanges Interests
Scripted One Way Low Quality Self

Phase 2
Acquaintance
Tested Mixed Medium Quality Self / Other

Phase 3
Partner
Negotiated Reciprocal High Quality Group

TIME

Phase 1
Graen & Uhl-Bien (1995)

Phase 1

Stranger
Interactions rule bound Rely on contractual relationships Relate to each other within prescribed organizational roles Experience lower quality exchanges Subordinate motives directed toward self-interest

Phase 2
Graen & Uhl-Bien (1995)

Phase 2

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

Phase 3
Graen & Uhl-Bien (1995)

Phase 3

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

LMX Theory Approach

Descriptive
Essential to recognize

Prescriptive
Best understood within the

existence of in-groups & outgroups Significant differences in how goals are accomplished using in-groups vs. outgroups Relevant differences in ingroup vs. out-group behaviors

Leadership Making Model Leader forms special relationship with each subordinate Leader should offer each subordinate an opportunity for new roles/responsibilities Leader should nurture high-quality exchanges with all subordinates Rather than concentrating on differences, leader should focus on ways to build trust

Strengths
LMX theory validates our experience of how

people within organizations relate to each other and the leader LMX theory is the only leadership approach that makes the dyadic relationship the centerpiece of the leadership process
LMX theory directs our attention to the importance

of communication Solid research foundation on how the practice of LMX theory is related to positive organizational outcomes

Criticisms
Inadvertently supports the development of privileged

groups in the workplace; appears unfair and discriminatory

The basic theoretical ideas of LMX are not fully

developed
Because of various 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 Leadership Bass (1985)

Transformational Leadership

Transactional Leadership

Laissez-Faire Leadership

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

Transformational Leadership Factors

Transformational
Factor 4 Individualized

Factor 3 Intellectual Stimulation Factor 2 Inspirational Motivational Factor 1 Idealized Influence Charisma

Transactional

Corrective Transactions

Lassiez-Faire

Consideration

Factor 6 Mgmt. by Exception Active & Passive

Factor 7 Laissez-Faire Nontransactional

Factor 5 Contingent Reward Constructive

Transactions

Leaders who exhibit TL:

have a strong set of values & ideals are effective in motivating followers to support greater good over self-interest

Transformational Leadership Factors The 4 Is

Idealized Influence

Describes leaders who act as strong role models for followers

Inspirational
Motivation

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

Stimulates followers to be creative and innovative; challenges their own beliefs and values and those of leader and organization
Individualized Consideration

Leaders who provide a supportive climate in which they listen carefully to the needs of followers

Transactional Leadership Factors

Contingent Reward
The exchange process between leaders and followers in which effort by followers is exchanged for specified rewards

Management by Exception
Leadership that involves corrective criticism, negative feedback, and negative reinforcement Two forms Active - Watches follower closely to identify mistakes/rule violations Passive - Intervenes only after standards have not been met or problems have arisen

Nonleadership Factor

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

Transformational Leadership Approach

Focus of Transformational Leaders
TLs empower and nurture

Overall Scope
Describes how leaders

followers TLs stimulate change by becoming strong role models for followers TLs commonly create a vision TLs act as change agents TLs are social architects

can initiate, develop, and carry out significant changes in organizations

Strengths
Broadly researched. TL has been widely researched, including

a large body of qualitative research centering on prominent leaders and CEOs in major firms. Intuitive appeal. People are attracted to TL because it makes sense to them. Process-focused. TL treats leadership as a process occurring between followers and leaders. Expansive leadership view. TL provides a broader view of leadership that augments other leadership models. Emphasizes follower. TL emphasizes followers needs, values, and morals. Effectiveness. Evidence supports that TL is an effective form of leadership.

Criticisms
Lacks conceptual clarity

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

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 behavior that can be taught

TL is elitist and antidemocratic

Suffers from heroic leadership bias

TL is based primarily on qualitative data Has the potential to be abused

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 firms 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