Leadership Theories and Models 12 ADMN2220

Leadership Defined

• Leadership is the ability to influence, motivate, and enable others to contribute to organizational effectiveness.

Learning Objectives

• Leadership range and scope
• Managers versus leaders
• Transformational leadership
• Path-goal leadership
• Other leadership theories
• Attributes of effective leaders

Range of Leadership Model

• Exhibit 11-7, Full Range of Leadership Model
• Effective leadership is categorized through a spectrum
• Active & Passive leadership styles are categorized as Transformational & Transactional
• Leadership styles are ranked by efficacy

Transactional Leadership

• Laissez-faire leader: Abdicates responsibilities, avoids making decisions
• Management by exception (active): Watches for deviations from rules, intervenes only if standards aren't met
• Contingent on reward: Leaders motivate through control of rewards.

Managerial Leadership

• Definition: Daily activities that support and guide performance and well-being of employees to support current objectives
• Managerial leadership vs transformational leadership: Stable vs dynamic environments; micro-focused vs macro-focused
• Transformational and managerial leadership depend on each other

The Differences Between Managers and Leaders

• Managers are involved in daily tasks of maintaining and allocating resources.
• Leaders focus on long-term objectives and reforming systems
• Managers supervise; leaders inspire and drive change.
• Managers act within established organizational culture; leaders create a vision and meaning for the organization.
• Managers use transactional influence; leaders use transformational influence.
• Managers rely on control; leaders empower followers.

Transformational Leadership

• A leadership approach that explains how leaders change teams and organizations by creating, communicating, and modeling a vision.
• Leaders inspire employees to strive for that vision.

Transformational Leadership Model

• Four elements within the transformational leadership model: Build commitment to the vision, Develop/communicate a strategic vision, Encourage experimentation, Model the vision

Transformational Leadership Elements (1 of 2)

• Develop/Communicate the vision
• Use symbols, metaphors, symbols
• Idealize and Frame the vision
• Leaders communicate with humility, sincerity, purpose, and passion

Transformational Leadership Elements (2 of 2)

• Model the vision
• Enacting the vision (walking the talk)
• Leader functions: Legitimizes and demonstrates the vision
• Builds positive employee trust in the leader
• Encourage experimentation
• Encourage employees to question current practices
• Support a learning orientation
• Build commitment to the vision
• Emphasize commitment through rewards and recognition

Charismatic Leadership

• From the Greek for "gift"
• A certain quality of an individual personality, which sets them apart from ordinary people
• Treated with supernatural, superhuman, or exceptional powers or qualities

Transformational vs Charismatic Leadership

• Charisma is distinct from transformational leadership
• A personal trait; creates referent power over followers
• Transformational leadership is comprised of behaviours to engage followers
• Potential problems include dependent followers; focus on self-interest vs common good

Evaluating Transformational Leadership

• Transformational leadership is important due to: Higher satisfaction, commitment, performance, OCBs, decisions, and creativity.
• Limitations include circular logic – leaders inspire employees, leadership is effective because of inspired leaders

Authentic Leadership

• An offshoot of positive psychology and positive organizational scholarship.
• Authentic leaders know themselves well and behave in ways that align with their beliefs.
• Authentic leadership produces positive effects such as increased followers' commitment and performance. Followers are more likely to emulate ethical leaders

Authentic Leadership

• Know Yourself: Engage in self-reflection and seek feedback from trusted sources
• Be Yourself: Develop personal leadership style, apply values, maintain self-evaluation

Implicit Leadership Perspective

• Follower perceptions of effective leaders
• Leadership prototypes: Preconceived beliefs about the features and behaviors of effective leaders.
• Favourable evaluation for leaders who fit the prototype
• Romance of leadership effect: Organizational failures & success are easily explained through leader ability.
• Due to need for situational control

Attributes of Effective Leaders (1 of 4)

• Personality: Most Big Five dimensions predict effective leadership. Strongest are high extroversion and conscientiousness.
• Self-concept: Complex, internally consistent, clear self-view as a leader. Positive self-evaluation. Transformational and managerial leader self-view

Attributes of Effective Leaders (2 of 4)

• Leadership motivation: Motivated to lead others; strong need for socialized power
• Drive: High need for achievement; related to high conscientiousness and positive self-concept; inquisitiveness, action-oriented, boldness

Attributes of Effective Leaders (3 of 4)

• Integrity: Truthfulness and consistency of words and actions
• Judge dilemmas using sound values
• Related to honesty and ethical conduct
• Knowledge of the business: Tacit and explicit knowledge of the organization's environment

Attributes of Effective Leaders (4 of 4)

• Cognitive/Practical Intelligence: Above average cognitive ability; superior ability to analyze complex alternatives and opportunities; able to use business knowledge to solve real-world problems
• Emotional intelligence: Recognize/regulate emotions in themselves and others

Do We Really Need a Leader?

• Task-oriented leadership might be less important when performance-based reward keeps employees directed towards organizational goals.
• Employee skills are a task-oriented leadership approach.

Gender Issues in Leadership

• Male/female leaders have similar task- and people-oriented leadership
• Female leaders use more participative leadership
• Gender stereotypes and leader prototypes affect followers' evaluation of female leaders
• Women rated higher on emerging leadership styles

Women in Leadership

• Motivational video and inspirational speech by Indra Nooyi
• Startup stories

Path-Goal Leadership

• Leaders motivate through expectancies and valences
• Contingency theory of managerial leadership
• Best leadership style depends on the employee/situation
• Four main path goal leadership styles: Directive, Supportive, Participative, Achievement-oriented

Path-Goal Contingencies

• Skill and experience: Low; supportive, directive leadership
• Locus of control: Internal (participative and achievement); external (directive and supportive)
• Task structure: Nonroutine, directive and/or participative
• Team dynamics: Low cohesion (supportive); dysfunctional norms (directive); performance-oriented and achievement-oriented leadership

Path-Goal Leadership Model

• Leader behaviours: Directive, Supportive, Participative, achievement-oriented
• Employee contingencies
• Environmental contingencies
• Leader effectiveness: Employee motivation; employee satisfaction; acceptance of leader

Other Managerial Leadership Theories

• Situational Leadership Model: Leadership theory focusing on followers' readiness
• Four styles: Telling, selling, participating, delegating
• Best style depends on follower ability/motivation

Fiedler Contingency Model

• Effective group performance depends on matching the leader's style with followers and the degree of control the situation gives to the leader.
• Leader-member relations, Task structure, Position power

Servant Leadership

• Serving followers towards their need fulfillment, personal development, and growth
• Selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches
• Servant leader characteristics include a natural calling to serve others, humble, egalitarian, and accepting relationship, and ethical decisions and actions.

Shared Leadership

• Leadership is a role, not a position
• Employees lead each other
• Shared leadership flourishes with formal leaders willing to delegate power
• Collaborative, not competitive, culture
• Employees develop effective influence skills