Chapter 12 Leadership in Organizational Settings leaders What is Leadership? Leadership

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1 Chapter 12 Leadership in Organizatinal Settings - The wrld is changing, and s is ur cncept f leadership - The ntin that leaders are charismatic heres wh stand in frnt f & far abve their fllws is slwly starting t disappear - Instead, leaders influence, mtivate, and facilitate the perfrmance and well-being f a grup f peple What is Leadership? - Leadership is abut influencing, mtivating & enabling thers t cntribute tward the effectiveness & success f the rg. f which they are members - 2 cmpnents: 1) Leaders mtivate thers thrugh persuasin & ther influence tactics. They use their cmmunicatin skills, rewards & ther resurces t energize the cllective t achieve challenging bjectives 2) Leaders are enablers. They arrange the wrk envirnment such as allcating resurces and altering cmmunicatin patterns s emplyees can achieve rg. bjectives mre easily - Why des the tpic f leadership cmmand s much attentin? - Pssibly b/c leadership des make a diff t an rg s effectiveness. - We are awed by individuals wh influence & mtivate thers beynd expectatins & build cmmitment t a better future Shared Leadership - Leadership isn t restricted t the exec suite. E/ees thrughut the rg. need t infrmally assume leadership respnsibilities in varius ways and at varius times - This is knwn as shared leadership, which suggests that leadership is plural, nt singular. It desn t perate ut f 1 frmally assigned psitin, rle r individual. Instead, e/ees lead each ther as the ccasin arises. - Jhn Gardner a US gvn t leader wrte that the vitality f larger rgs. depends n shared leadership. E/ees acrss all levels f the rg. need t seek ut pprtunities & slutins t prblems rather than rely n frmal leaders t serve these rles He bserved that successful teams cnsist f individuals ther than the frmal leader wh takes respnsibility fr healing rifts when cnflicts arise, and fr building cnfidence in thers when events have turned fr the wrse - Many studies have nted that e/ees step unfficially int leadership psitins when they champin the intr f new ideas & technlgies - Shared leadership flurishes in rgs. where the frmal leaders are willing t delegate pwer & encurage e/ees t take initiative & risks w/ fear r failure (ie. a learning rientatin culture) - Shared leadership als calls fr a cllabrative rather than internally cmpetitive culture b/c e/ees take n shared leadership rles when c-wrkers supprt them fr their initiative - Shared leadership lacks frmal authrity, s it perates best when e/ees learn t influence thers thrugh their enthusiasm, lgical analysis & invlvement f c-wrkers in their idea r visin Ex. Rlls-Ryce emerged shared leadership. As part f its e/ees engagement initiative, the aircraft engine repair facility invlved e/ees directly with clients, encuraged weekly huddles fr inf sharing, and accepted e/ee requests fr less micr-management. E/ees nt nly experienced higher levels f engagement & empwerment, they als accepted mre leadership respnsibilities. I saw peple arund me, all frnt-line e/ees, wh were leaders. They weren t actually leading the c, but they were peple yu wuld listen t & fllw. We didn t have titles, but peple had respect fr what we did. Sme rgs. have nurtured shared leadership t an extent that mst frmal leaders emerge frm these shared leadership activities. - There is prbably mre writing n leadership than n any ther tpic in rg. behaviur. Frtunately, mst

2 f this enrmus vlume f leadership literature can be distilled & rganized int 5 perspectives: cmpetency, behaviural, cntingency, transfrmatinal & implicit - Althugh sme f these perspectives are currently mre ppular than thers, each helps us t mre fully understand the cmplex issue f leadership Cmpetency Perspective f Leadership - Since the beginning f recrded civilizatin, peple have been interested in the persnal characteristics that distinguish great leaders frm the rest f us - In the 6 th century BCE, the Chinese philspher La-tzu described effective leaders as selfless, hnest, fair & hardwrking - The Greek philspher Plat claimed that great leaders have wisdm & a superir capacity fr lgical thinking - There are n cnsistent traits that all leaders pssess. - Leaders tend t exhibit certain traits in cmparisn t nn-leaders (ie. intelligence, drive, self-cnfidence, flexibility) - A few traits are assciated with effective leaders. Effective leaders pssess specific persnal characteristics. The emerging wrk has identified several leadership cmpetencies - skills, knwledge, aptitudes & ther persnal characteristics that lead t superir perfrmance (Ch.2) - The main categries f leadership cmpetencies are: Persnality mst f the Big 5 persnality dimensins (ch. 2) are assciated with effective leadership t sme extent, but the strngest predictrs are high levels f extrversin (utging, talkative, sciable & assertive) and cnscientiusness (careful, dependable & self-disciplined). With high extrversin, effective leaders are cmfrtable having an influential rle in scial settings. With higher cnscientiusness, effective leaders set higher gals fr themselves (and thers) and are mre mtivated t pursue thse gals The leader s high levels f extrversin & cnscientiusness Self-Cncept successful leaders have a cmplex, internally cnsistent & clear self-cncept f themselves as a leader (ch.2). This leader identity als includes a psitive self-evaluatin, including high self-esteem, self-efficacy & internal lcus f cntrl. In shrt, effective leaders define themselves as leaders & are cnfident with this self-view. The leader s self-beliefs & psitive self-evaluatin abut his/her wn leadership skills & ability t achieve bjectives Drive related t their high cnscientiusness & psitive self-cncept, successful leaders have a high need fr achievement (ch.5). This drive represents the inner mtivatin that leaders pssess t pursue their gals & encurage thers t mve frward with theirs. Drive inspires inquisitiveness, an actin rientatin, and bldness t take the rg. r team int unchartered waters. The leader s inner mtivatin t pursue gals Integrity integrity invlves truthfulness & cnsistency f wrds & actins, qualities that are related t hnesty & ethical cnduct. Leaders have a high mral capacity t judge dilemmas using sund values & t act accrdingly. Integrity is ultimately based n the leader s values, which prvide an anchr fr cnsistency. Several studies have reprted that integrity & hnesty are the mst impt. Characteristics f effective leaders. But, recent surveys reprted that e/ees dn t trust their leaders & dn t think they have integrity. Many dn t trust senir mgnmt, while few agreed that their mgrs. have cnsistency between their wrds & actins The leader s truthfulness & tendency t translate wrds int deeds Leadership mtivatin effective leaders are mtivated t lead thers. They have a strng need fr scialized pwer they want pwer as a means t accmplish rg. bjectives & similar gd deeds. This cntrasts with a need fr persnalized pwer the desire t have pwer fr persnal gain r fr the thrill ne might experience frm wielding pwer ver thers (ch. 5). Leadership mtivatin is als necessary b/c even in cllegial firms, leaders are in cntests fr psitins further

3 up the hierarchy. Effective leaders thrive rather than wither in the face f this cmpetitin The leader s need fr scialized pwer t accmplish team r rg. gals Knwledge f the business effective leaders pssess tacit & explicit knwledge f the business envirnment in which they perate, enabling the leader t make mre intuitive decisins Cgnitive & practical intelligence leaders have abve-avg cgnitive ability t prcess enrmus amunts f inf. Leaders aren t necessarily geniuses; rather, they have a superir ability t analyze a variety f cmplex alternatives & pprtunities. Leaders have practical intelligence. Cgnitive intelligence is assessed by perfrmance n clearly defined prblems with sufficient inf & usually 1 best answer. In cntrast, practical intelligence is assessed by perfrmance in real-wrld settings, where prblems are prly defined, inf is missing, and mre than 1 slutin may be plausible. The leader s abve-avg cgnitive ability t prcess inf (cgnitive intelligence) and ability t slve real-wrld prblems by adapting t, shaping r selecting apprpriate envirnments (practical intelligence) Emtinal intelligence effective leaders have a high level f emtinal intelligence. They are able t perceive & express emtin, assimilate emtin in thugh, understand & reasn with emtin & regulate emtin in themselves & thers (ch. 4) The leader s ability t mnitr his/her wn & thers emtins, discriminate amng them, and use the inf t guide his r her thughts & actins Authentic Leadership - Several cmpetencies assciated with effective leaders related t anther impt characteristic, authentic leadership hw effective leaders need t be aware f, feel cmfrtable with, and act cnsistently with their values, persnality & self-cncept - Authenticity is knwing yurself & being yurself - Leaders learn mre abut their persnality, values, thughts & habits by reflecting n varius situatins & persnal experiences. They als imprve this self-awareness by receiving feedback frm trusted peple inside & utside the rg. - Bth self-reflectin & receptivity t feedback require high levels f emtinal intelligence. - As peple learn mre abut themselves, they gain a greater understanding f their inner purpse which, in turn, generates a lng-term passin fr achieving smething wrthwhile fr the rg. r sciety - Sme leadership experts suggest that this inner purpse emerges frm a life stry, typically a critical event r experience earlier in life that prvides guidance fr their later career & energy - Authentic leadership is mre than self-awareness; it als invlves behaving in ways that are cnsistent with that self-cncept rather than pretending t be smene else. T be themselves, great leaders regulate their decisins & behaviur in several ways: - (1) They develp their wn style, and where apprpriate, place themselves int psitins where that style is mst effective. Althugh effective leaders adapt their behaviur t the situatin t sme extent, they invariably understand & rely n decisin methds & interpersnal styles that feel mst cmfrtable t them - (2) Effective leaders cntinually think abut & cnsistently apply their stable hierarchy f persnal values t thse decisins & behaviurs. Leaders face many pressures & temptatins, such as achieving shrt-term stck price targets at the cst f lng-term prfitability. Experts nte that authentic leaders demnstrate self-discipline by remaining anchred t their values - (3) Leaders maintain cnsistency arund their self-cncept by having a strng, psitive cre selfevaluatin. They have high self-esteem & self-efficacy as well as an internal lcus f cntrl Knw Yurself Be Yurself Engage in self-reflectin, receive feedback frm trusted surces, understand yur life stry develp yur wn style, apply yur values, maintain a psitive cre self-evaluatin Cmpetency Perspective Limitatins & Practical Implicatins

4 - Althugh the cmpetency perspective is gaining ppularity (again), it has a few limitatins: (1) Assumes that all effective leaders have the same persnal characteristics that are equally impt in all situatins. This is prbably a false assumptin; leadership is t cmplex t have universal list f traits that apply t every cnditin. Sme cmpetencies might nt be impt all the time (2) Alternative cmbinatins f cmpetencies may be equally successful, 2 peple with diff sets f cmpetencies might be equally gd leaders. (3) The cmpetency perspective views leadership as smething within a persn, yet experts emphasize that leadership is relatinal. Peple are effective leaders b/c f their favurable relatinships with fllwers, s effective leaders can t be identified w/ cnsidering the quality f these relatinships - Several leadership researched warned that sme persnal characteristics might influence nly ur perceptin that smene is a leader, nt whether the individual really makes a diff t the rg. s success - Peple wh exhibit self-cnfidence, extrversin & ther traits are called leaders b/c they fit ut prttype f an effective leader. Or we might see a successful persn, call that persn a leader, and then attribute unbservable traits that we cnsider essential fr great leaders. - The cmpetency perspective f leadership desn t necessarily imply that leadership is a talent acquired at birth, rather than develped thrughut life. On the cntrary, cmpetencies indicate nly leadership ptential, nt leadership perfrmance. Peple with these characteristics becme effective leaders nly after they have develped and mastered the necessary leadership behaviurs. Peple with smewhat lwer leadership cmpetencies may becme very effective leaders b/c they have leveraged their ptential mre fully Behaviural Perspectives f Leadership - In the 1940s & 50s, leadership experts at several unis launched an intensive research investigatin t answer the questin what behaviurs make leaders effective? Surveys were given t e/ees, asking them t rate their supervisrs n a large # f behaviurs. This study distilled 2 clusters f leadership behaviurs frm thusands f item - One cluster directive leadership includes behaviurs that define & structure wrk rles. Directive leaders assign e/ees t specific tasks, set gals & deadlines, clarify wrk duties & prcedures, define wrk prcedures, and plan wrk activities Leaders are directive when they: assign wrk & clarify respnsibilities, set gals & deadlines, evaluate & prvide feedback n wrk quality, establish well-defined best wrk prcedures, plan future wrk activities Initiating structure actins by a leader designed t enhance prductivity r task perfrmance - 2 nd clusters supprtive behaviurs includes behaviurs such as listening t e/ees fr their pinins & ideas, creating a pleasant physical wrk envirnment, shwing interest in staff, appreciating & recgnizing e/ees fr their effrt, and shwing cnsideratin f e/ees Leaders are supprtive when they: listen t e/ees, make the wrkplace mre pleasant, shw interest in thers as peple, recgnize e/ees fr their wrk, are cnsiderate f e/ee needs Cnsideratin actins by a leader that demnstrate cncern with the welfare f subrdinates & with gd relatins with them Chsing Directive vs. Supprtive Leadership

5 - Shuld leaders be directive r supprtive? - Recent evidence suggests that bth styles are psitively assciated with leader effectiveness, but in diff ways. Increasing supprtive leadership reduces e/ee absenteeism, grievances, turnver & jb dissatisfactin, whereas increasing directive leadership results in higher jb perfrmance - Research suggests that uni students value directive instructrs b/c they want clear bjectives & wellprepared lectures that abide by the unit s bjective. Other research indicates that fllwers have few stress symptms when leaders shw empathy twards e/ees - One prblem with behaviural leadership perspective is that the 2 categries are brad generalizatins that mask specific behaviurs within each categry Ex. directive leadership includes planning wrk activities, clarifying rles, and mnitring peratins & perfrmance Each f these clusters f activities are fairly distinct & likely have diff effects n e/ee well-being & perfrmance - 2 nd prblem is that behaviural apprach assumes that high levels f bth styles are best in all situatins. - In reality, the best leadership style depends n the situatin. The behaviural perspective lays the fundatin fr 2 f the main leadership styles supprtive & directive fund in many cntemprary leadership styles - Great leaders apply 1 leadership style r anther, depending n the situatin Servant Leadership - Servant leadership is an extensin r variatin f the supprtive leadership style b/c it defines leadership as serving thers tward their need fulfillment, persnal develpment & grwth - Servant leaders ask hw can I help yu? rather than expect e/ees t serve them - Peple wh epitmize servant leadership have been described as selfless, egalitarian, humble, nurturing, empathetic & ethical caches - Main bjective f servant leadership is t help ther stakehlders fulfill their needs & ptential, particularly t becme healthier, wiser, freer, mre autnmus, mre likely themselves t becme servants - Servant leadership research suffers frm cnflicting definitins, but writers agree n a few features: (1) Servant leaders have a natural desire r calling t serve thers. This natural desire is diff frm a rle bligatin (it s part f a leader s jb t help thers) r an instrumental purpse (the leader helps thers s they will achieve the leader s bjective). Rather, it s a deep cmmitment t the grwth f thers fr that purpse alne (2) Servant leaders maintain a relatinship with thers that is humble, egalitarian, and accepting. Servant leaders dn t view leadership as a psitin f pwer. Rather, they serve w/ drawing attentin t themselves, w/ evking superir status, and w/ being judgemental abut thers r defensive f criticisms received (3) Servant leaders anchr their decisins & actins in ethical principles & practices. They display sensitivity t & enactment f mral values & aren t swayed by scial pressures r expectatins t deviate frm thse values. In this respect, servant leadership verlaps with authentic leadership - Servant leadership was intrduced 4 decades ag, and has since had a steady fllwing, particularly amng practitiners & religius leaders - There is much agreement n the 3 features abve, but sme servant leadership writers have included varius ther characteristics that might cnfund the cncept with its predictrs & utcmes - Aside frm these cncerns, the ntin f leader as servant has cnsiderable currency & fr many centuries has been embedded in leadership principles within mst majr religins Cntingency Perspective f Leadership

6 - The cntingency perspective f leadership is based n the idea that the mst apprpriate leadership style depends n the situatin - Mst (althugh nt all) cntingency leadership theries assume that effective leaders must be bth insightful & flexible - They must be able t adapt their behaviurs & styles t the immediate situatin. This isn t easy t d, but leaders typically have a preferred style. It takes cnsiderable effrt fr leaders t chse & enact diff. styles t match the situatin. - Leaders must have high emtinal intelligence s that they can diagnse the circumstances & match their behaviurs accrdingly Path-Gal Thery f Leadership (** knw this fr exam start at cntingencies first then define style) - Several cntingency theries have been prpsed ver the years, but path-gal leadership thery has withstd scientific critique better than the thers - Path-gal thery explained mre abut effective leadership than did any ther ppular perspective f leadership (Transfrmatinal leadership) - Path-gal leadership thery has its rts in the expectancy thery f mtivatin (ch. 5) b/c leaders create paths (expectancies) t effective perfrmance (gals) fr their e/ees - Path-gal thery states that effective leaders ensure that gd perfrmers receive mre valued rewards than d pr perfrmers. Effective leaders als prvide inf, supprt & ther resurces necessary t help e/ees cmplete their tasks - Effective leaders clarify the paths t help their fllwers get frm where they are t the pint f achieving their gals Cntingencies f Path-Gal Thery - As a cntingency thery, path-gal thery states that each f the 4 leadership styles will be effective in sme situatins, but nt in thers. - The path-gal leadership mdel specifies 2 sets f situatinal variables that mderate the relatinship between a leader s style & effectiveness: (1) emplyee characteristics and (2) characteristics f the emplyee s wrk envirnment - 4 cntingencies: skill & experience, lcus f cntrl, task structure, team dynamics 1. Skill & Experience a cmbinatin f directive & supprtive leadership is best fr e/ees wh are (r perceive themselves t be) inexperienced & unskilled. Directive leadership gives e/ees inf abut hw t accmplish the task, whereas supprtive leadership helps them cpe with the uncertainties f unfamiliar wrk situatins. - Directive leadership is detrimental when e/ees are skilled & experienced b/c it intrduces t much supervisry cntrl - When ne has lw skill & experience, need bth directive & supprtive leadership 2. Lcus f Cntrl - Peple with an internal lcus f cntrl believe that they have cntrl ver their wrk envirnment (ch. 3) these e/ees prefer participative & achievement-riented leadership styles & may becme frustrated with a directive style - Peple with an external lcus f cntrl believe that their perfrmance is due mre t luck & fate, s they tend t be mre satisfied with directive & supprtive leadership Lcus f cntrl a persn s general beliefs abut the amunt f cntrl s/he has ver persnal life cncepts Thse with an internal lcus f cntrl believe that their persnal characteristics (mtivatin and cmpetencies) mainly influence life s utcmes. They have a mre psitive self-evaluatin they tend t perfrm better in mst emplyment situatins and mre successful in their careers, earn mre mney and are better suited fr

7 leadership psitins Mre satisfied with their jbs, cpe better in stressful situatins, and are mre mtivated by perfrmance-based reward systems Thse with an external lcus f cntrl believe that events in their life are due mainly t date, luck r cnditins in the external envirnment. It s a generalized belief, s peple with an external lcus can feel in cntrl in familiar situatins (ex. perfrming cmmn tasks). Hwever, their underlying lcus f cntrl wuld be apparent in new situatins in which cntrl ver events is uncertain 3. Task Structure - Leaders shuld adpt the directive style when the task is nn-rutine, b/c this style minimizes rle ambiguity that tends t ccur in cmplex wrk situatins (particularly fr inexperienced e/ees). The directive style is ineffective when e/ees have rutine & simple tasks b/c the mgr s guidance serves n purpse & may be viewed as unnecessarily clse cntrl Participative leadership is preferred fr e/ees perfrming nn-rutine tasks b/c the lack f rules & prcedures gives them mre discretin t achieve challenging gals - E/ees in highly rutine & simple jbs may require supprtive leadership t help them cpe with tedius nature f the wrk & lack f cntrl ver the pace f wrk Participative leadership is ineffective fr e/ees in rutine tasks b/c they lack discretin ver their wrk 4. Team Dynamics - chesive teams with perfrmance-rientated nrms act as a substitute fr mst leadership interventins - High team chesin substitutes fr supprtive leadership, whereas perfrmance-riented team nrms substitute fr directive & pssibly achievement-riented leadership - Thus, when team chesin is lw leaders shuld use the supprtive style. - Leaders shuld apply a directive style t cunteract team nrms that ppse the team s frmal bjectives (when there are dysfunctinal nrms, apply directive leadership) Ex. team leader may need t use legitimate pwer if team members have develped a nrm t Take it easy rather than get a prject cmpleted n time - Path-gal thery has achieved mre research supprt than ther cntingency leadership mdels, but evidence is far frm cmplete. A few cntingencies (ie. task structure) have limited research supprt. - Other cntingencies & leadership styles in path-gal leadership mdel haven t been investigated at all. - Path-gal thery expands, the mdel may becme t cmplex fr practical use. Few peple wuld be able t remember all f the cntingencies & the apprpriate leadership styles fr thse cntingencies. But path-gal remains a relarively rbust cntingency leadership thery Path-Gal Leadership Styles - 4 leadership styles: directive, supprtive, participative, achievement-riented 1. Directive leadership this style cnsists f clarifying behaviurs that prvide a psychlgical structure fr e/ees. The leader clarifies perfrmance gals, the means t reach these gals, and the standards against which perfrmance will be assessed. It als includes judicius use f rewards & disciplinary actins. Directive leadership is the same as directive leadership described earlier and the imprtance f clear rle perceptins in e/ees perfrmance (Ch. 2) Prvides specific guidance, prvides psychlgical structure t jbs, task-riented behaviurs 2. Supprtive leadership in this style, the leader s behaviurs prvide psychlgical supprt fr e/ees. The leader is friendly & apprachable; makes the wrk mre pleasant; treats e/ees with equal respect & shws cncern fr the status, needs & well-being f e/ees. Supprtive leadership reflects the benefits f scial supprt t help e/ees cpe with stressful situatins Satisfies subrdinate needs, prvides physilgical supprt, peple-riented behaviurs

8 3. Participative leadership encurage & facilitate subrdinate invlvement in decisins beynd their nrmal wrk activities. The leader cnsults with e/ees, asks fr their suggestins & takes these ideas int serius cnsideratin befre making a decisin. Participative leadership relates t invlving e/ees in decisins Subrdinates participate in decisins, encurage/facilitate e/ee invlvement 4. Achievement-riented leadership emphasizes behaviurs that encurage e/ees t reach their peak perfrmance. The leader sets challenging gals, expects e/ees t perfrm at their highest level, cntinuusly seeks imprvement in e/ee perfrmance & shws a high degree f cnfidence that e/ees will assume respnsibility & accmplish challenging gals. Achievement-riented leadership applies gal-setting thery as well as psitive expectatins in self-fulfilling prphecy Sets challenging gals, encurage peak perfrmance thrugh gal setting & psitive selffulfilling prphecy - The path-gal mdel cntends that effective leaders are capable f selecting the mst apprpriate behaviural style (r styles) fr each situatin. Leaders might simultaneus use 2 r mre styles, nt all. Other Cntingency Theries - Many leadership theries have been develped ver the years, mst f which are fund in the cntingency perspective f leadership - Sme verlap with the path-gal mdel s leadership styles, but mst use simpler & mre abstract cntingencies Situatinal Leadership Thery - One f the mst ppular cntingency theries amng practitiners is the situatinal leadership thery (SLT) develped by Paul Hersey & Ken Blanchard - SLT suggests that effective leaders vary their style with the ability & mtivatin (r cmmitment) f fllwers - The earliest versins f the mdel cmpressed the e/ee s ability & mtivatin int a single situatinal cnditin called maturity r readiness - The mst recent versin uses 4 labels, such as enthusiastic beginner (lw ability, high mtivatin) and disillusined learner (mderate ability & lw mtivatin)

9 - Situatinal leadership mdel als identifies 4 leadership styles telling, selling, participating & delegating that Hersey & Blanchard distinguish by the amunt f directive & supprtive behaviur prvided. - Ex. telling has high task behaviur & lw supprtive behaviur. The situatinal leadership mdel has 4 quadrants, with each quadrant shwing the leadership style that s mre apprpriate under diff. circumstances - In spite f its ppularity, several studies & at least 3 reviews have cncluded that the situatinal leadership mdel lacks empirical supprt. Only ne part f the mdel apparently wrks, namely, that leaders shuld use telling (ie. directive style) when e/ees lack mtivatin & ability. This relatinship is als dcumented in path-gal thery. The mdel s elegant simplicity is attractive & entertaining, but mst parts dn t represent reality very well Fiedler s Cntingency Mdel - Fiedler s cntingency mdel develped by Fred Fiedler & his assciates, is the earliest cntingency thery f leadership - Accrding t this mdel, leader effectiveness depends n whether the persn s natural leadership style is apprpriately matched t the situatin - Thery examines 2 leadership styles that essentially crrespnd t supprtive & directive styles. But, the mdel relies n a questinnaire that desn t measure either leadership style very well - Fiedler s mdel suggests that the best leadership style depends n the level f situatinal cntrl the degree f pwer & influence that the leader pssesses in a particular situatin Situatinal cntrl affected by 3 factrs in the fllwing rder f imprtance: leader-member relatins, task structure & psitin pwer Leader-member relatins hw much e/ees trust & respect the leader & are willing t fllw his r her guidance Task structure the clarity r ambiguity f perating prcedures Psitin pwer the extent t which the leader pssesses legitimate, reward & cercive pwer ver subrdinates These 3 cntingencies frm the 8 pssible cmbinatins f situatin favurableness frm the leader s viewpint Gd leader-member relatins, high task structure & strng psitin pwer create the mst favurable situatin fr the leader b/c s/he has the mst pwer & influence under these cnditins - Fiedler has gained cnsiderable respect fr pineering the 1 st cntingency thery f leadership. Hwever, his thery has fared less well. The leadership-style scale used by Fiedler has been widely criticized. There s n scientific justificatin fr placing the 3 situatinal cntrl factrs in a hierarchy. - The cncept f leader-member relatins is really an indicatr f leader effectiveness (as in path-gal thery) rather than a situatinal factr - The thery cnsiders nly 2 leadership styles, whereas ther mdels present a mre cmplex & realistic array f behaviur ptins. These cncerns explain why the thery has limited empirical supprt Changing the Situatin t Match the Leader s Natural Style - Fiedler s cntingency mdel may have becme a histrical ftnte, but it des make an impt. & lasting cntributin by suggesting that, cntrary t mst cntingency theries, leaders can t change their style very easily t fit the situatin - Instead, they tend t rely mainly n 1 style that is mst cnsistent with their persnality & values - Leaders with high agreeableness persnality & benevlence values tend t prefer supprtive leadership, whereas leaders with high cnscientiusness persnality & achievement values feel mre cmfrtable with the directive style f leadership - A few schlars have prpsed that leadership styles are hardwired mre than mst cntingency

10 theries assume. Leaders might be able t alter their style temprarily, but they tend t rely mainly n 1 style that is mst cnsistent with their persnality & values - If leadership style is influenced by an individual s persnality & values, rgs shuld engineer the situatin t fit the leader s dminant style, rather than expect leaders t change their style with the situatin A directive leader might be assigned inexperienced newcmers wh need directin rather than skilled e/ees wh wrk less effective under a directly style C s might transfer supervisrs t wrkplaces where their dminant style fits best. Ex. directive leaders might be parachuted int wrk teams with cunterprductive nrms, whereas leaders wh prefer a supprtive style shuld be sent t departments in which e/ees face wrk pressures & ther stressrs Leadership Substitutes - Leadership substitutes identifies cnditins that either limit a leader s ability t influence e/ees r make a particular leadership style unnecessary - The literature identifies several cnditins that pssibly substitute fr directive / supprtive leadership. - Directive leadership might be less impt. when perfrmance-based reward systems keep e/ees directed tward rg. gals. Similarly, increasing e/ee skill & experience might reduce the need fr directive leadership - This prpsitin is cnsistent with path-gal leadership thery, which states that directive leadership is unnecessary and may be detrimental when e/ees are skilled r experienced - Sme research suggests that effective leaders help team members learn t lead themselves thrugh leadership substitutes c-wrkers substitute fr leadership in high-invlvement team structures C-wrkers instruct new e/ees prviding directive leadership. They als prvide scial supprt, which reduces stress amng fellw e/ees. - Teams with nrms that supprt rg gals may substitute fr achievement-riented leadership b/c e/ees encurage (r pressure) c-wrkers t stretch their perfrmance levels. - Self-leadership the prcess f influencing neself t establish the self-directin & self-mtivatin needed t perfrm a task might be a substitute fr directive & achievement-riented leadership - The leadership substitutes mdel has intuitive appeal, but the evidence s far is mixed. Sme studies shw that a few substitutes d replace the need fr directive r supprtive leadership, but thers dn t - The difficulties f statistically testing fr leadership substitutes may accunt fr sme prblems, but a few writers cntend that the limited supprt is evidence that leadership plays a critical rle regardless f the situatin. Leadership substitutes might reduce the need fr leaders, but they dn t cmpletely replace leaders in these situatins Transfrmatinal Perspective f Leadership - Transfrmatinal leadership is the mst ppular perspective f leadership tday. Unlike the cntingency & behaviural perspectives, which examined hw leaders imprve e/ee perfrmance & well being, transfrmatinal leadership views effective leaders as agents f change in the wrk unit r rg. They create, cmmunicate, and mdel a shared visin fr the team r rg., and they inspire fllwers t strive fr that visin Mtivating thers by develping, intellectually stimulating, and inspiring fllwers t transcend their wn self-interests fr a higher cllective purpse, missin, r visin Transfrmatinal vs. Transactinal Leadership - Leadership experts ften cntrast transfrmatinal leadership with transactinal leadership these leaders influence thers mainly by using rewards & penalties as well as by negtiating services frm e/ees

11 Guiding and mtivating fllwers t achieve gals by clarifying respnsibilities and ffering rewards in exchange fr perfrmance - James McGregr Burns wh cined the term 3 decades ag, describes transactinal leadership with reference t plitical leaders wh engage in vte buying r making transactinal prmises (ie. I ll have a new hspital built in yur twn if yu vte fr me). - Mgrs in rgs. are rarely elected, yet transactinal leadership has becme the fcus f study in OB - Cnflicting array f definitins & measures f transactinal leadership Ex. Burns suggests that transactinal leaders can appeal t fllwer wants & cnvictins abut mrality & justice, but this is similar t actins f transfrmatinal leadership. S we will avid transactinal leadership cncept - Mre apprpriate cmparisn t transfrmatinal leadership is managerial leadership r managing helping e/ees becme mre prficient & satisfied in the current situatin. - Whereas transfrmatinal leaders are change agents wh energize & direct e/ees t a new visin & crrespnding behaviurs - The cntingency & behaviural leadership theries refer t managerial leadership b/c they fcus n leader behaviurs & imprve e/ee perfrmance & well-being rather than n behaviurs that mve the rg & wrk unit t a new directin - Leadership expert Warren Bennies nted Mgrs are peple wh d things right & leaders are peple wh d the right thing - Orgs. require bth managerial & transfrmatinal leadership. - Managing imprves rg. efficiency, whereas transfrmatinal leadership streers c s nt a better curse f actin - Transfrmatinal leadership is impt in rgs. that require significant alignment with the external envirnment. Unfrtunately, t many leaders get trapped in the daily activities that represent managerial leadership. They lse tuch with the transfrmatinal aspect f effective leadership. Withut transfrmatinal leaders, rgs. stagnate & eventually becme seriusly misaligned with their envirnments - Factrs f Transfrmatinal Leadership: - Idealized Influence hw fllwers view the leader s pwer; behaviurs centered n values, beliefs and a sense f purpse - Inspiratinal Mtivatin inspires fllwers t try t achieve; raises self-expectatins - Individualized Cnsideratin develping emplyees; caching; supprting - Intellectual Stimulatin helping emplyees emphasize ratinal slutins - Factrs f Transactinal Leadership: - Cntingent Reward rewards satisfactry perfrmance - Management by Exceptin-Active mnitrs fllwers mistakes and failure t meet standards - Management by Exceptin-Passive de nt step in until prblems are severe - Laissez-faire general failure t take respnsibility; lack f management Transfrmatinal vs. Charismatic Leadership - Many researchers either use the wrds interchangeably, as if they have the same meaning, r view charismatic leadership as an essential ingredient f transfrmatinal leadership - Others suggest that charismatic leadership is the highest degree f transfrmatinal leadership

12 - Emerging view cmes frm a 3 rd grup f experts wh cntend that charisma - is a persnal trait r relatinal quality that prvides referent pwer ver fllwers, whereas transfrmatinal leadership - is a set f behaviurs that engage fllwers tward a better future - This view is mst cnsistent with the riginal & nging schlarly definitin f charisma - an inherent characteristic f ne s character, nt smething that can be easily learned r mimicked - Transfrmatinal leadership mtivates fllwers thrugh behaviurs that persuade & earn trust, whereas charismatic leadership mtivates fllwers directly thrugh existing referent pwer - Any charisma a leader pssesses will amplify fllwer mtivatin tward a desired bjective beynd the effect f transfrmatinal behaviurs - Being charismatic isn t inherently gd r bad, but it can have negative cnsequences in leadership. (1) Leaders wh pssess the gift f charisma may becme intxicated by this pwer, which leads t a greater fcus n self-interest than n cmmn gd. Charisma becmes the unding f leaders, warns Peter Drucker. it makes them inflexible, cnvinced f their wn infallibility, unable t change (2) Charismatic leadership tends t prduce dependent fllwers. Transfrmatinal leadership has the ppsite effect it builds fllwer empwerment, which tends t reduce dependence n the leader. One study fund that charismatic leadership has a negative effect n fllwer self-efficacy, which wuld further increase dependence n the leader - Transfrmatinal leaders aren t necessarily charismatic, and vice versa Elements f Transfrmatinal Leadership - There are several descriptins f transfrmatinal leadership, but mst include 4 elements: develp a strategic visin, cmmunicate the visin, mdel the visin, and build cmmitment tward the visin 1. Develp a Strategic Visin a realistic & attractive future that bnds e/ees tgether & fcuses n their energy tward a superrdinate rg. gal. Experts describe visin as the cmmdity r substance f transfrmatinal leadership. Strategic visin represents a higher purpse r superrdinate gal that energizes & unifies e/ees and adds meaning t each persn s self-cncept - Typically described in a way that departments frm the current situatin & is bth appealing and achievable - A strategic visin might riginate with the leader, but it s just as likely t emerge frm e/ees, clients, suppliers r ther stakehlders. When embraced by e/ees, a strategic visin plays an impt. rle in rg. effectiveness. It ffers mtivatinal benefits as gal setting (ch. 5), but als serves as a surce f cmmn bnd that builds e/ee cmmitment t this cllective purpse 2. Cmmunicate the Visin if visin is the substance f transfrmatinal leadership, cmmunicating that visin is the prcess. CEO s say mst impt. leadership quality is being able t build & share their visin fr the rg. Part f a leader s rle is t set the visin fr the c. and t cmmunicate that visin t staff t get their buy-in - Transfrmatinal leaders cmmunicate meaning & elevate the imprtance f the visinary gal t e/ees. They frame msgs arund a grand purpse with emtinal appeal that captivates e/ees & ther crprate stakehlders - Framing generates psitive emtins & mtivatin as well as establishes a cmmn mental mdel s that the grup r rg will act cllectively tward the desirable gal - Transfrmatinal leaders bring their visins t life thrugh symbls, metaphrs, stries & ther vehicles that transcend plain language. Metaphrs brrw images f ther experiences, creating richer meaning f the visin that hasn t yet been experienced 3. Mdel the Visin transfrmatinal leaders nt nly talk abut a visin; they enact it. They walk the talk by stepping utside the exec suite & ding things that symblize the visin. The ex. yu set at the tp f is prbably the mst impt thing a CEO des in terms f what yu ask peple t d, yu have gt

13 t walk that same line yurself - Leaders walk the talk thrugh significant events such as visiting custmers, mving their ffices clser t (r further frm) e/ees, and hlding ceremnies t destry ut-dated plicy manuals. Hwever, they als alter mundane activities meeting agendas, dress cdes, exec schedules s that the activities are mre cnsistent with the visin and its underlying values - Mdelling the visin is impt. b/c it builds e/ee trust in the leader. The greater the cnsistency between the leader s wrds & actins, the mre e/ees will believe in & be willing t fllw the leader - Leading by example is the mst impt. Characteristic f a leader. As an exec, yu re always being watched by e/ees, and everything yu say gets magnified s yu teach a lt by hw yu cnduct yurself 4. Build Cmmitment Tward the Visin transfrming a visin int reality requires e/ee cmmitment, and transfrmatinal leaders build this cmmitment in several ways. Their wrds, symbls & stries build a cntagius enthusiasm that energizes peple t adpt the visin & staying n curse. Their persistence & cnsistency prtray hnesty, trust & integrity. Leaders build cmmitment by invlving e/ees in the prcess f shaping the rg s visin Evaluating the Transfrmatinal Leadership Perspective - Transfrmatinal leaders d make a difference. E/ees are mre satisfied & have higher affective rg. cmmitment with transfrmatinal leaders. They als perfrm their jbs better, engage in mre rg. citizenship behaviurs, and make better r mre creative decisins. - One bank branch reprted that rg. cmmitment & financial perfrmance seem t increase where the brand manger cmpleted a transfrmatinal leadership training prgram - Transfrmatinal leadership is mst ppular leadership perspective, but it faces a # f challenges: (1) Sme writers engage in circular lgic they define & measure transfrmatinal leadership by hw well the leader inspires & engages e/ees rather than by whether they engage in behaviurs we call transfrmatinal (ie. cmmunicating a visin). This apprach makes it impssible t evaluate transfrmatinal (2) Transfrmatinal leadership is usually described as a universal rather than cntingency-riented mdel. Only very recently writers begun t explre the idea that transfrmatinal leadership is mre valuable in sme situatins than thers. Ex. transfrmatinal leadership is prbably mre apprpriate when rgs. need t adapt than when envirnmental cnditins are stable. Preliminary evidence suggests that the transfrmatinal leadership perspective is relevant acrss cultures. Hwever, there may be specific elements f transfrmatinal leadership, such as the way visins are frmed & cmmunicated, they are mre apprpriate in Nrth America than in ther cuntries Implicit Leadership Perspective - The cmpetency, behaviural, cntingency & transfrmatinal leadership perspectives make the basic assumptin that leaders make a difference. Certainly, there s evidence that senir execs d influence rg. perfrmance. Hwever, leadership als invlves fllwers perceptins abut the characteristics & influence f peple they call leaders - This perceptual perspective f leadership, called implicit leadership thery has 2 cmpnents: leader prttypes & the rmance r attributin f leadership Prttypes f Effective Leaders - One aspect f implicit leadership thery states that everyne has leadership prttypes precnceived beliefs abut the features & behaviurs f effective leaders - These prttypes, which develp thrugh scializatin within the family & sciety, shape the fllwer s expectatins & acceptance f thers as leaders, and this in turn affects the willingness t remain as a fllwer. Ex. ne study reprted that inherited persnality characteristics significantly influence the

14 perceptin that smene is a leader in a leaderless situatin - Leadership prttypes nt nly supprt a persn s rle as leader; they als frm r influence ur perceptin f the leader s effectiveness. Peple are mre likely t believe a leader is effective when s/he lks like & acts cnsistently with their prttype as a leader. This prttype cmparisn prcess ccurs b/c peple have an inherent need t quickly evaluate individuals as leaders, yet leadership effectiveness is ften ambiguus and might nt be apparent fr a lng time The Rmance f Leadership - Alng with relying n implicit prttypes f effective leaders, fllwers tend t distrt their perceptin f the influence that leaders have n the envirnment - This rmance f leadership effect exists b/c in mst cultures peple want t believe that leaders make a diff. Fllwers assume leaders have mre influence/impact than they actually d - Ex. At Semc SA, the charismatic CEO fund that at the c., n matter what yu d, peple will naturally create & nurture a charismatic figure. The charismatic figure feeds this: it desn t just happen, and it s very difficult t check yur eg at the dr. The peple dn t lk & act like the CEO, but there s a certain feeling that has t d with the cult f persnality. They credit him with successes that aren t my wn, and they dn t debit him his mistakes. They give undue imprtance t what he says, and he thinks that desn t g away - 2 basic reasns why peple inflate their perceptins f the leader s influence ver the envirnment: (1) Leadership is a useful way fr us t simplify life events. It s easier t explain rg. successes & failures in terms f the leader s ability than by analyzing a cmplex array f ther frces (2) There s a strng tendency in Canada & ther Western cultures t believe that life events are generated mre frm peple than frm uncntrllable natural frces. This illusin f cntrl is satisfied by believing that events result frm the ratinal actins f leaders E/ees feel better believing that leaders make a diff., s they actively lk fr evidence that this is s - One way that fllwers supprt their perceptins that leaders make a diff is thrugh fundamental attributin errr (ch. 3). Research has fund that (at least in Western cultures) leaders are given credit r blame fr the c s success r failure b/c e/ees dn t readily see the external frces that als influence these events. Leaders reinfrce this belief by taking credit fr rg. successes - The implicit leadership perspective prvides valuable advice t imprve leadership acceptance. It highlights the fact that leadership is a perceptin f fllwers as much as the actual behaviurs & frmal rles f peple calling themselves leaders. Ptential leaders must be sensitive t this fact, understand what fllwers expect, and act accrdingly. Individuals wh dn t make an effrt t fit leadership prttypes will have mre difficulty brining abut necessary rg. change Crss-Cultural & Gender Issues in Leadership - Alng with the 5 perspectives f leadership presented, cultural values & practices affect what leaders d. - Culture shapes the leader s values & nrms, which influence his/her decisins & actins - Cultural values als shape the expectatins that fllwers have f their leaders - An exec wh acts incnsistently with cultural expectatins is mre likely t be perceived as an ineffective leader

15 - Leaders wh deviate frm thse values may experience varius frms f influence t get them t cnfrm t the leadership nrms & expectatins f the sciety implicit leadership thery explains differences in leadership practices acrss cultures researchers have wrked tgether n Prject GLOBE (Glbal Leadership & Organizatinal Behaviur Effectiveness) t identify the effects f cultural values n leadership. The prject rganized cuntries int 10 reginal clusters, f which Canada, the US, Great Britain, and similar cuntries are gruped int the Angl cluster. The results f this massive investigatin suggest that sme features f leadership are universal & sme differ acrss cultures The GLOBE prject reprts that charismatic visinary is a universally recgnized cncept that middle mgrs. arund the wrld believe that is characteristic f effective leadership - Charismatic visinary represents a cluster f cncepts including: visinary, inspiratin, perfrmance rientatin, integrity & decisiveness. - In cntrast, Participative leadership is perceived as characteristic f effective leadership in lw pwer distance cultures but less s in high pwer distance cultures Ex. One study reprted that Mexican e/ees expect mgrs. t make decisins affecting their wrk. Mexic is a high pwer distance culture, s fllwers expect leaders t apply their authrity rather than delegate their pwer mst f the time. - There are similarities & differences in the cncept & preferred practice f leadership acrss cultures Gender & Leadership - Studies in field settings have generally fund that male & female leaders dn t differ in their levels f directive r supprtive leadership - The main explanatin is that real-wrld jbs require similar behaviur frm male & female jb incumbents. Hwever, wmen d adpt a participative leadership style mre readily than their male cunterparts - One pssible reasn is that, cmpared t bys, girls are ften raised t be mre egalitarian & less status-riented, which is cnsistent with being participative - There s almst sme evidence that wmen have smewhat better interpersnal skills than men, and this translates int their relatively greater use f the participative leadership style - E/ees, n the basis f their wn gender steretypes, expect female leaders t be mre participative, s female leaders cmply with fllwer expectatins t sme extent - Several surveys reprt that wmen are rated higher than men n the emerging leadership qualities f caching, teamwrk & empwering e/ees. Yet research als suggests that wmen are evaluated negatively when they try t apply the full range f leadership styles, particularly mre directive & autcratic appraches. Thus, irnically, wmen may be well suited t cntemprary leadership rles, yet they ften cntinue t face limitatins f leadership thrugh the gender steretypes & prttypes f leaders that are held by fllwers - Overall, bth male & female leaders must be sensitive t the fact that fllwers have expectatins abut hw leaders shuld act, and negative evaluatins may g t leaders wh deviate frm thse expectatins

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