12 - Leadership-2.pptx

LEADERSHIP INTRODUCTION    Costly business failures can be traced to poor leadership. Subordinates of a bad boss have no organizational commitment, reduced job & life satisfaction, & high levels of stress. Consciously or unconsciously, leaders operate on the basis of some theory of human beha...

LEADERSHIP INTRODUCTION    Costly business failures can be traced to poor leadership. Subordinates of a bad boss have no organizational commitment, reduced job & life satisfaction, & high levels of stress. Consciously or unconsciously, leaders operate on the basis of some theory of human behavior. What is Leadership     Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members. Leadership is the process of influencing and supporting others to work enthusiastically toward achieving objectives. Leadership is about values, vision, enabling, and coaching. Leaders apply various forms of influence – from subtle persuasion to direct application of power – to ensure that followers have the motivation and role clarity to achieve specified goals. 3 What to do? A leader works on improving his/her influence through conscious efforts in improving performance and meeting objectives, enhancing people skills, developing networks among colleagues and peers, and in contributing to over-all organizational efforts and objectives. 4 Theories of Leadership  Behavioral Theories of Leadership – leadership behaviors can be taught  Trait Theory of Leadership – leaders are born, not made PERSONAL CHARACTERISTICS ASSOCIATED WITH LEADERSHIP   1. Leader Emergence 2. Leader Performance 2.1 Traits 2.2 Cognitive Ability 2.3 Needs 2.4 Gender 2.5 Task vs. Person Orientation 1. Leader Emergence     Part of trait theory Postulates that certain types of people will become leaders and certain types will not Born with the desire to lead or not lead Leadership behavior has some stability – a person can be a leader in many situations 2. Leader Performance    Part of trait theory Postulates that certain types of people will be better leaders than with other types of people Leaders who perform well possess certain characteristics 2.1 Traits     OCEA - positively related to leader performance N – negatively related to leader performance Self-monitoring – the tendency to adapt one’s behavior to fit a particular social situation; high self-monitors tend to be better leaders Ex. A shy leader adapts her outward behavior to appear outgoing and confident by greeting them when he Overview of the Big “5” 2.2 Cognitive Ability (Intelligence)   Judge et al. (2007) – moderate but significant relationship between cognitive ability and leadership performance Sternberg (2007) – the key to effective leadership is the related to leader performance synthesis of 3 variables: Wisdom Intelligence (academic and practical) 2.3 Needs     McClelland’s need for power, achievement and affiliation These needs can be measured through various psychological tests (TAT, Job Choice Exercise Argus and Zajack (2008) – significant relationship between need for achievement and leader performance Leadership Motive Pattern (McClelland & Boyatzis, 1982) – high performance managers demonstrate a high need for power (organizational power, not personal power) and low need for affiliation Leadership Motive Pattern    Implies that leaders effective leaders should be more concerned with results than with being liked (leader will have a tough time making decisions) Explains why internal promotions often do not work (hinders the manager from giving orders and disciplining employees) But it does not necessarily mean that a leader should not be friendly and 2.4 Gender    When all studies are combined, men and women do not differ in leadership effectiveness. Male leaders – more effective in situations traditionally defined in masculine terms and when majority of the subordinates are men Female leaders - more effective in situations traditionally defined in less masculine terms 2.5 Task vs. Person Orientation 3 Major schools of thought explaining this:  Ohio State (OS) Studies/Theory  McGregor’s Theory  Managerial Grid Orientation PERSON/PEOPLEORIENTED        High in consideration Warm and supportive Show concern for subordinates Believe that employees are intrinsically motivated, seek responsibility, are self-controlled, and don’t necessarily dislike work Consult their subordinates before making decisions, praise their work, ask about their families, use hands-off approach to leadership Under pressure, they become socially withdrawn Appreciate humor of others TASK-ORIENTED      Define and structure roles Believe that employees are lazy, extrinsically motivated, undisciplined, wanting security, shrinking responsibility Manage or lead by giving directives, setting goals, and make decision without consulting their subordinates Under pressure they become anxious, defensive and dominant Produce humor Ohio State Leadership Studies/Theory   Two dimensions of leader behavior: a. Consideration People oriented Extent to which leaders exhibit concern for  their subordinates’ welfare Oriented towards building friendships, mutual trust, respect, camaraderie b. Initiating Structure Task oriented Defines leader and group member roles, initiates actions, organizes activities and defines how tasks are to be accomplished by the group Douglas McGregor’s Theory X and Y THEORY X   Assumes that people are lazy, unambitious & dislike work, & therefore must be led, directed, coerced, watched & scolded. A dictatorial/ authoritarian leader. THEORY Y    Assumes that people find satisfaction in their work & function best under a leader who allows them to participate in working toward both personal & organizational goals. People are industrious & creative, & seek challenge & responsibility. Participative, democratic leadership. Managerial Grid (MG) (Blake & Mouton, 1984)       A measure of leadership that classifies a leader into 5 leadership styles a. Country club b. Team c. Impoverished d. Task-centered (AuthorityCompliance) e. Middle-of-the-road  a. Country Club Leaders – act in a warm and     supportive manner and show concern for their subordinate b. Task-centered leaders – define and structure their own roles and those of their subordinates to attain their goal c. Middle of the road leaders – have a balance orientation between people and task d. Impoverished Leader – leader who’s concerned with neither productivity nor the well-being of the employee e. Team leader – a leader who is concerned with both the productivity and well-being of the Consequences of Leader Orientation High Person Orientation Low performance Low turnover Low grievance rate Low Person Orientation High performance Low performance High turnover High turnover High grievance rate High grievance rate Low Task Orientation High performance Low turnover Low grievance rate HighTask Orientation Leadership Measures   Leadership Opinion Questionnaire (LOQ) – measures a leader’s selfperception of his/her leadership Leader Behavior Description Questionnaire (LBDQ) – measure perceptions of a leader’s style by his/her subordinates Unsuccessful Leaders      Traits of unsuccessful leaders are not necessarily the opposite of those of successful leaders Three Major Causes: 1. Lack of leadership training 2. Cognitive deficiencies – unable to learn from experience and unable to think strategically 3. Personality of the leader - insecure 3 Personality Types of Unsuccessful Leaders  1. Paranoid or Passive-Aggressive Insecure because of some incident in life that made them feel betrayed Has deeply rooted/unconscious resentment and anger Charming, quiet, supportive, compliment subordinates and fellow workers but resent the successes of other and “stab” another person in the back  2. High-Likability Floater Insecure but seldom rocks the boat and causes trouble Friendly, goes along with everyone, never challenges everyone, and has no enemies Even if they make no great performance, they are liked Employees have high morale but low performance  3. Narcissists Insecure but overcomes it by overconfidence Like to be the center of attention, promote their own accomplishments and take most/all of the credit of their group’s success Avoid all blame for failure INTERACTION BETWEEN THE LEADER AND THE SITUATION      Theories that explain the situational nature of leadership 1. Situational Favorability – Fiedler’s Contingency Model 2. Organizational Climate – IMPACT Theory 3. Subordinate Ability – Path-Goal Theory; Situational Leadership Theory 4. Relationships with Subordinates – Situational Favorability Three factors that will determine the favorability of a situation:  1. Task structuredness –the extent to which tasks have clear goals and problems can be solved  2. Leader-position power – the extent to which a leader, by nature of his or her position, has the power to reward and punish subordinates  3. Leader-member relations (most important factor) – the extent to which subordinates like a leader     The more structured the task, the more favorable the situation A group setting with no assigned leader is not a favorable leadership situation The more the subordinates like their leader, the more favorable the situation. Fred Fiedler’s Contingency Model    Best known and most controversial situational theory Leadership effectiveness is dependent on the interaction between the leader and the situation Least Preferred Coworker (LPC) Scale – a test he developed which is used in conjunction with Fiedler’s contingency model to reveal leadership style and effectiveness  Low-scoring LPC leaders – tend to be task oriented  High-scoring LPC leaders – tend to be person oriented  Leader Match – a training program he developed that teaches leaders how to Leadership Style  Identifying leadership style is the first step in using the model. Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called LeastPreferred Co-Worker (LPC) Scale (see Figure 1).  The scale asks you to think about the person who you've least enjoyed working with. This can be a person who you've worked with in your job, or in education or training. You then rate how you feel about this person for each factor, and add up your scores. If your total score is high, you're likely to be a relationship-orientated leader. If your total score is low, you're more likely to be task-orientated leader.  Figure 1 – Fiedler’s Model Figure 1: Least-Preferred Co-Worker Scale Unfriendly 1 2 3 4 5 6 7 8 Friendly Unpleasant 1 2 3 4 5 6 7 8 Pleasant Rejecting 1 2 3 4 5 6 7 8 Accepting Tense 1 2 3 4 5 6 7 8 Relaxed Cold1 2 3 4 5 6 7 8 Warm Boring 1 2 3 4 5 6 7 8 Interesting Backbiting 1 2 3 4 5 6 7 8 Loyal Uncooperative 1 2 3 4 5 6 7 8 Cooperative Hostile 1 2 3 4 5 6 7 8 Supportive Guarded 1 2 3 4 5 6 7 8 Open Insincere 1 2 3 4 5 6 7 8 Sincere Unkind 1 2 3 4 5 6 7 8 Kind Inconsiderate 1 2 3 4 5 6 7 8 Considerate Untrustworthy 1 2 3 4 5 6 7 8 Trustworthy Gloomy 1 2 3 4 5 6 7 8 Cheerful Quarrelsome 1 2 3 4 5 6 7 8 Harmonious Situational Favorableness Next, you determine the "situational favorableness" of your particular situation. This depends on three distinct factors:  Leader-Member Relations – This is the level of trust and confidence that your team has in you. A leader who is more trusted and has more influence with the group is in a more favorable situation than a leader who is not trusted.  Task Structure – This refers to the type of task you're doing: clear and structured, or vague and unstructured. Unstructured tasks, or tasks where the team and leader have little knowledge of how to achieve them, are viewed unfavorably.  Leader's Position Power – This is the amount of Step 1: Identify your leadership style Think about the person who you've least enjoyed working with, either now or in the past.  Step 2: Identify your situation Are leader-member relations good or poor?  Step 3: Determine the most effective leadership style   LMX Task Structure Leader Position Most Effective Good Structured Strong Low LPC  Good Structured Weak Low LPC Good Unstructured Strong Low LPC Good Unstructured Weak High LPC Poor Structured Strong High LPC Poor Structured Weak High LPC Poor Unstructured Strong High LPC Poor Unstructured Weak Low LPC         LOW LPC – Task oriented - effective regardless of whether the factors are favorable or not HIGH LPC- relationship oriented – effective when factors are middle of the road.       Situational leadership and Path theory mid 1960 – study personality and characteristics of leaders No best style but effectiveness base on situation Leadership style and situational favorableness Style is fix – use your scale to generate scores Situational favorableness – leader-member relationship (trust in me), task structure (type of task) and leader position power (reward or punishment) – the more power you have the more favorable your situation (strong or weak) Organizational Climate   Each leadership style is effective in only a particular situation (organizational climate) IMPACT Theory by Downey and Johnson (1980) IMPACT Theory        There are 6 leadership styles and that each style will be effective in one of six organizational climates 1. Informational (climate of ignorance) 2. Magnetic (climate of despair) 3. Position (climate of instability) 4. Affiliation (climate of anxiety) 5. Coercive (climate of crisis) 6. Tactical (climate of IMPACT Theory Informational Style in a Climate of Ignorance ▪ Informational Style – leader leads through knowledge and information ▪ Climate of Ignorance – important information is not available Magnetic Style in a Climate of Despair ▪ Magnetic Style – leader has influence because of his or her charismatic personality ▪ Climate of Despair – characterized by low morale (hopelessness) Position Style in a Climate of Instability ▪ Position Style –the leader influence others by virtue of their appointed or elected authority ▪ Climate of Instability – people are not sure what to do Affiliation Style in a Climate of Anxiety ▪ Affiliation Style – the leader leads by caring about others ▪ Climate of Anxiety – worry predominates Coercive Style in a Climate of Crisis ▪ Coercive Style – the individual leads by controlling rewards and punishments ▪ Climate of Crisis – a critical time; the outcome to a decision has extreme consequences (ex. During war) Tactical Style in a Climate of Disorganization ▪ Tactical Style – person leads through organization and strategy ▪ Climate of Disorganization – the organization has the resources and knowledge, but does not know how to efficiently use this resources Subordinate Ability (and Attitudes)     An important influence on leader effectiveness Subordinate abilities and attitudes interact with the style and characteristics of the leader Because the need of subordinates change with each new situation, leaders must adjust their behaviors to meet the need of their subordinates Path-Goal Theory Path-Goal Theory (Robert House, 1971)    Leaders will be effective if their behavior helps subordinate achieve their personal and organizational goals Behavior-based so it can be used in training Effective leaders: Recognize the needs of subordinates and work to satisfy those needs Reward subordinates who reach their goals Help subordinates identify the best paths to take in reaching particular goals Clear those paths so that employees can reach their goals Four Behavioral Leadership Style (Path-Goal Theory)     Instrumental Style – a leader plans and organize the activities of the employees Supportive Style – a leader show concern for their employees Participative Style – a leader allows employee to participate in decision making Achievement-oriented Style – a leader sets challenging goals, Relationship with Subordinates  Leader-Member Exchange (LMX) Theory (Dansereau, Graen and Haga, 1975) Originally called Vertical Dyad Linkage (VDL) Theory A unique situational theory that makes intuitive sense Concentrates on interactions between leaders and subordinates Leaders develop different roles and relationships with their subordinates and thus act differently towards them Subordinates fall under two categories Two Groups of Subordinates  In-group Subordinates characterized by high quality relationship with the leader (trusting, friendly relationships with the leader) Leader allows them to participate in decisions and rarely discipline them  Out-group Subordinates characterized by a low quality relationship with the leader More likely given direct orders and have less say about how affairs are conducted   Employees with high LMX – higher job satisfaction , OCBs, job performance To become members of in-group, employees engage in ingratiating behaviors like complimenting their leader Situational Leadership Theory (Hershey & Blanchard, 1988)   A theory of leadership stating that effective leaders must adapt their style of leadership to fit both the situation and the followers Follower readiness - the ability and willingness to perform a particular task Most important follower characteristic Can be measured by the manager or through  self-rating Effective leaders first diagnose the competency and motivation levels of employees for each goal/task and adapt their leadership to fit them Four Readiness (R) Levels   R1 (Directing approach): for unable and unwilling/insecure employees Leader tells the follower what to do and how to do it R2 (Coaching approach): for unable but willing/confident employees Subordinates are willing to do the work but they are not sure how to do it Leaders explain and clarify how work should be done   R3 (Supporting approach): for able but unwilling/insecure employees Subordinates know what to do but are unsure whether they want to do it Leaders give plenty of emotional support and opportunities for 2-way communication R4 (Delegating approach): for able and willing/confident employees Subordinates are both willing and able to perform the task  SPECIFIC LEADER SKILLS       Least described in textbooks but it is the way leadership is most often practiced in industry 1. Leadership through decision making 2. Leadership through contact 3. Leadership through power 4. Leadership through vision 5. Leadership through authenticity Leadership Through Decision Making    Vroom-Yetton Model - a theory of leadership that concentrates on helping a leader choose how to make a decision. Leadership performance can be improved by teaching leaders to become better decision makers It provides a decision tree (flowchart) to help leaders decide whether they should make the decision alone or Leadership Through Contact: Management by Walking Around (MBWA)    A popular specific behavioral theory Leaders and supervisors are most effective when they are out of their offices, walking around and meeting with the employees and customers about their needs and progress Increases communication, build relationships with employees, and encourage employee participation Leadership through Power Power is important to leaders for as it increases, so does the potential to influence others. Leaders who have power are able to obtain more resources, dictate policy and advance farther in an organization than those who have little or no power Five Basic Types of Power  1. Expert power – power individuals have because they have knowledge Two requirements: a. Knowledge must be something that others in an organization need b. Others must know that the leader knows something (has it or uses it)  2. Legitimate power – power individuals have because of their elected or appointed position Examples: Coach has power over the players of the team; President has power over the Vice   3. Reward Power – the extent to which a leader has the ability and authority to provide rewards (financial or non-financial, promotions, favorable work assignments) 4. Coercive Power - the extent to which a leader has the capacity to punish others (firing, not promoting, giving a cold shoulder) It is important that others believe that  5. Referent Power – leadership power that exists when followers can identify with a leader and the leader’s goals Leaders who are well-liked can influence others even in the absence of reward or coercive power Employees of leaders with this kind of power have higher job satisfaction and organizational commitment Leadership Through Vision: Transformational Leadership    Two Popular Leadership Styles: transactional and transformational Transactional Leadership - leadership style in which the leader focuses on task-oriented behaviors Three dimensions:  1. Contingent reward – leaders who reward followers for engaging in desired activity  2. Management by exception-active – leaders who actively monitor performance and take corrective action when needed  3. Management by exception-passive – leaders who don’t actively monitor follower behavior and who take corrective action only when problems are serious  Transformational Leadership - visionary leadership in which the leader changes the nature and goals of an organization Focuses on changing the goals, values, ethics, performance, standards of others “charismatic”, “inspirational”, “visionary” Confident, have a high need to influence others and hold a strong attitude that their ideas/beliefs are correct Positively related to OCEA; negatively related to N Three Dimensions of Transformational Leadership    1. Charisma – leaders with high moral and ethical standards who have a strong vision of where they want their followers to go and who use enthusiasm to motivate their followers 2. Intellectual Stimulation – leaders who encourage change and open thinking, challenge the status quo, and appreciate diversity 3. Individual Consideration – leaders who encourage individual growth and take the time to mentor and coach their Five Characteristics Not Shared by Poor Leaders      1. Vision – they have a vision of where they want the organization to go and provide direction toward the end 2. Differentiation – they are different from their followers ad at the same time similar enough to relate to and empathize with them 3. Values – successful leaders have strong values 4. Transmission of Vision and Values – successful leaders are able to communicate their vision and values to others 5. Flaws – successful leaders typically have a major flaw and they know it (it makes them more human and provides a target that followers can focus on whenever they are upset with their leader) Transformational vs. Transactional Leaders  Transformational leaders  Leading -- changing the organization’s strategies and culture so they fit better with the surrounding environment  Change agents who energize and direct employees to a new set of corporate values and behaviors.  Transactional leaders  Managing -- linking job performance to rewards  Ensure employees have necessary resources  Apply contingency leadership Leadership in Organizational Settings 6 Transformational Leadership Phases Creating a Strategic Vision Communicating the Vision Transformational Leadership Building Commitment Leadership in Organizational Settings Modeling the Vision 66 Transformational Leadership Phases Creating a Strategic Vision • Transformational Leaders shape a strategic vision of a realistic and attractive future that bonds employees together and focuses energy toward a super-ordinate (higher purpose) organizational goal. • Transformational Leaders communicate meaning and elevate the importance of the visionary goal to employees; Communicating• They frame message around a grand the Vision purpose with emotional appeal that captivates employees; bring their vision to life through symbols, metaphor stories, and other vehicles that transcend plain language. Leadership in Organizational Settings 67 Transformational Leadership Phases • Transformational Leaders not only talk about Modelling the Vision Building Commitment to the Vision a vision, they enact it; they walk the talk. • They are reliable and persistent in their actions, thereby legitimizing the vision and providing further evidence that they can be trusted. • Transformational Leaders build a contagious enthusiasm through their words, symbols, and stories that energizes people to adopt the vision as their own. • They demonstrate a “can do” attitude by enacting their vision and staying on course. Their persistence and consistency reflect an image of honesty, trust and integrity. • They involved employees in the process of shaping the organization’s vision. Leadership in Organizational Settings 68 Leadership Through Authenticity   Theory stating that leaders should be honest and open and lead out of a desire to serve others rather than a desire for self-gain Self-awareness – an important aspect of authentic leadership (need to understand who they are – reflect on their own ethics, core beliefs and values, recognize and accept their weaknesses and take steps to correct them