Chapter Two - Leadership Theories PDF
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This document provides an overview of various leadership theories. It discusses the concept of leadership traits and associated behaviors.
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CHAPTER TWO LEADERSHIP THEORIES Traits, Behaviors, and Relationships Theories of Leadership The Traits Approach Scholars in the early 20th century studied traits of great leaders: strong, intelligent, persuasive, driven, ethical Sometimes called “great man”...
CHAPTER TWO LEADERSHIP THEORIES Traits, Behaviors, and Relationships Theories of Leadership The Traits Approach Scholars in the early 20th century studied traits of great leaders: strong, intelligent, persuasive, driven, ethical Sometimes called “great man” theories, these investigations examined leaders’ innate personality characteristics. They were preceded by what we call the genetic theory of leadership. Leadership ability is transmitted “genetically” from father to son. They believed that leadership is born. Leadership was called the divine (coming from God) right of kings and others of 2.1 The Traits Approach,... According to trait theory, some people are born with traits that make them natural leaders. E.g. The Great Man Theory This theory is associated most often with 19th-century commentator and historian Thomas Carlyle, who commented that: “The history of the world is the biography of great men," reflecting his belief that heroes shape history through both their personal attributes and The Traits Approach,... The trait theory essentially says that leaders are born with certain traits or characteristics that make them leaders. Importantly, the traits need not come from royalty. Associating with leadership success, this theory attempts to identify specific: Physical, Mental, and Personality characteristics It relates those traits to certain success criteria. The Traits Approach,... Some of the leadership traits as identified by different scholars: Personality traits (creativity and self- confidence); Physical traits (energy level); Abilities (knowledge and fluency of speech); Social characteristics (popularity and sociability); Work related characteristics (the desire to The Traits Approach,... Stogdill (1948) identified several traits that appeared consistent with effective leadership. E.g. He found out leaders were more intelligent than followers. Personality traits such as alertness, originality, personal integrity, and self-confidence can be associated with effective leadership. The Traits Approach,... In 1991, Kirkpatrick and Locke identified a number of personal traits that distinguish leaders from non-leaders. The six traits that differentiate leaders from non- leaders are: drive, drive refers to exerting high levels of effort in aspects such as achievement, motivation, ambition, energy, tenacity (persistence) and initiative. the desire to lead, honesty/integrity, self-confidence, cognitive ability, and knowledge. This approach stresses that the trait approach The Traits Approach,... A.J. Dubrin (2008) divides personality traits of effective leaders into two: General personality traits Traits observable both within and outside the context of work Task related personality traits Traits closely associated with task accomplishment General Personality Traits of Effective Leaders General Personality Traits of Effective Leaders,... Self Confidence: The confidence a leader displays and develops: Improves one’s performance in a variety of tasks and Instill self-confidence in team members. Is not only a trait, also a behavior and interpersonal skill, akin to being cool under pressure Humility: It includes: Being humble (not proud) at the right times. Admitting that you do not know everything and cannot do everything Admitting one’s own mistakes to team members and outsiders. As a leader, upon receiving a compliment for an accomplishment, You may explain that the group deserves the credit. Put people in the limelight (spotlight), not yourself. General Personality Traits of Effective Leaders,... Trustworthiness Trust is defined as a person’s confidence in another individual’s intentions and motives and in the sincerity of that individual’s word. Being trustworthy contributes to leadership effectiveness. An effective leader or manager is supposed to walk the talk (being honest), showing consistency between deeds (walking) and words (talking). General Personality Traits of Effective Leaders,... Trust builders: Makeyour behavior consistent with your intentions; When your organization (unit) moves into a problem solving mode instead of looking to blame others for what went wrong: Honor confidence, Maintain a high level of integrity, Tell the truth and Make trust pay in terms of receiving General Personality Traits of Effective Leaders,... Trusting a leader was highly associated with a variety of work attitudes of group members. The highest specific relationships with trust were as follows: Job satisfaction (r=.51), Organizational commitment (r=.49) Turn over (r=-.40), Belief in information provided by the leader (r=.35), Satisfaction with the leader (r=.73), and Favorable leader-member exchange (r=.69). General Personality Traits of Effective Leaders,... Extraversion It is "the act, state, or habit of being predominantly concerned with obtaining gratification from what is outside the self". Extraverts tend to enjoy human interactions and to be enthusiastic, talkative, assertive, and gregarious (sociable). Extraversion is helpful for leaders to be gregarious and outgoing in most situations. Extraverts are more likely to want to assume a General Personality Traits of Effective Leaders,... Assertiveness (confident in behavior) Assertiveness is the quality of being self-assured and confident without being aggressive. It refers to being forthright (frank) in expressing demands, opinions, feelings, and attitudes. Letting others know where you stand contributes to leadership effectiveness. Being assertive helps leaders perform many tasks and achieve goals. E.g. Confronting group members about their mistakes, Demanding higher performance Setting high expectations, and General Personality Traits of Effective Leaders,... Emotional stability It refers to the ability to control emotions to the point that one’s emotional responses are appropriate to the occasion. Emotions associated with low emotional stability include: Anxiety (fear), depression (being sad), anger, embarrassment (feel foolish), and worry. Emotional stability is an important leadership trait because group members expect and need consistency in the way they are treated. General Personality Traits of Effective Leaders,... Enthusiasm It is about eagerness and showing interest in others. In almost all leadership situations, it is desirable for the leader to be enthusiastic. Group members tend to respond positively to enthusiasm, partly because enthusiasm may be perceived as a reward for constructive behavior. Enthusiasm is also a desirable leadership trait because it helps build good relationships with team members. A leader can express enthusiasm both verbally (Great job!; I love it) and non-verbally (making a high five gesture). General Personality Traits of Effective Leaders,... Sense of humor- funniness Whether humor is a trait or a behavior, the effective use of humor is an important part of the leader’s role. Humor adds to the approachability and people- orientation of a leader. Laughter and humor serve such function in the workplace as relieving tension and boredom and defusing hostility. General Personality Traits of Effective Leaders,... Warmth- showing kindness, affection Being a warm person and projecting that warmth contributes to leadership effectiveness in several ways. First, warmth helps to establish rapport with group members. Second, the projection of warmth is a key component of charisma (magical quality). Third, warmth is a trait that helps to provide emotional support to group members. Task-Related Personality Traits of Leaders Task-Related Personality Traits of Leaders,... Passion for the work and the people (strong feeling) A dominant character of effective leaders is their passion for their work and to some extent for the people who help them accomplish the work. The passion goes beyond enthusiasm and often expresses itself as an obsession for achieving company goals. Passion for their work is especially evident in entrepreneurial leaders, no matter what size and type of business. Task-Related Personality Traits of Leaders,... Emotional intelligence It refers to the ability to do such things as understanding one’s feelings, having empathy (understanding) for others, and regulate one’s emotions to enhance one’s quality of life. This type of intelligence generally has to do with the ability to connect with people and understand their emotions. Leadership researchers and experienced workers have long known that how well a person manages his or her emotions and those of others influence leadership effectiveness. Task-Related Personality Traits of Leaders,... Flexibility and adaptability A leader is someone who facilitates change. A leader must be flexible enough to cope up with such changes as technological advances, downsizings, outsourcing, a shifting customer base, and a changing work force. Flexibility, or the ability to adjust to different situations, has long been recognized as an important leadership characteristic. Leaders who are flexible are able to adjust to the demands of changing conditions. Task-Related Personality Traits of Leaders,... Internal locus of control People with an internal locus of control believe that they are the prime mover behind events. An internal locus of control helps a leader in the role of a take-change person because the leader believes fundamentally in his/her innate capacity to take change. An internal locus of control is closely related to self-confidence. A strong internal locus facilitates self-confidence because the person perceives that he/she can control circumstances enough to perform well. A leader with an internal locus of control is likely to be favored by group members. Task-Related Personality Traits of Leaders,... Courage (mental strength to venture) Leaders need courage to face challenges of taking prudent risks and taking initiative in general. Courage comes from heart. It takes courage for a leader to suggest a new undertaking, because if the undertaking fails, the leader is often seen as having failed. Criticisms of Trait Theory Some effective leaders do not possess all of these traits, and some leaders who possess these traits are not effective. For at least some traits, it is not clear which comes first, being in a leadership position or possessing the trait in question. The trait approach provides little guidance concerning what advice or training to give current or soon-to-be leaders. The approach ignores the situation in which leadership takes place. 2.2 Behavioral Theories of Leadership To measure behaviors, we first cluster them into competencies. These are measurable clusters of knowledge, skills, and abilities (KSAs) that are critical in determining how results will be achieved. Examples of competencies are customer service, written or oral communication, creative thinking, and dependability. In the 1930s, emphasis on behaviorism moved researchers in the direction of leadership behavior. This theory sets forth the hypothesis that rather than a person’s DNA or personality characteristics or traits, it is how a person acts (what leaders do) in a particular situation that determines that person’s leadership effectiveness. That is, researchers turned to an examination of the behavior of leaders and resulting effects on the: Performance and Leadership Behavior Theories,... The behavioral approaches to leadership came out of the human relations movement in management theory. This theory: Focused on the individual and not the task Stressed that leadership can be studied and learned. The research supporting behavioral theories of Leadership Behavior Theories,... 1. The job-centered and employee-centered leadership study led by Rensis Likert at the University of Michigan in 1947 2. The initiating structure and consideration study conducted by the Bureau of Educational Research at Ohio State University after World War II. These were NOT the only studies done in Behavioral Leadership, but they were the first to lead researchers beyond the Trait Theory and into the next evolution. Leadership Behavior Theories,... Studies on Leadership Behaviors A) University of IOWA by Kurt Lewin and his associates Indicated three leadership styles: autocratic, democratic and free rein ( laissez faire-that gives complete freedom to followers) Group with autocratic leaders: Performed highly so long as the leader was around; Unhappy with close leadership style Feelings of hostility arose frequently Leadership Behavior Theories,... When to use the different leadership styles depends on the organizational circumstances: Autocratic when There is time pressure on leaders It needs to take longer time to make decisions by followers There is greater skill difference between leaders and followers Participative style when: Followers are able to learn decision making skills readily According to Tannenbaum and Schmidt (1958), leader behavior could exist on a continuum reflecting different levels of employee participation. Leadership Behavior Theories,... Boss-centered Leadership Employee-centered Leadership Tells Sells Presents Presents Presents Defines Permits followers ideas & tentative problems limits to function invites decisions gets asks within limits questions subject to suggestions groups change makes decisions to make decisions Continuum of Leader Behavior Job-Centered and Employee- Centered Leadership B) The job-centered and employee-centered leadership study led by Rensis Likert at the University of Michigan The purpose of the Likert study was to discover the principles and methods of effective leadership in a wide variety of organizations and industries. Data were obtained from thousands of employees doing different tasks. The effectiveness criteria used in many of the studies included the following: Job-Centered and Employee-Centered Leadership,… 1. Productivity per work hour or other similar measures of the organization’s success in achieving its production goals; 2. Job satisfaction of members of the organization; 3. Turnover, absenteeism, and grievance rates; 4. Costs; 5. Scrap loss; 6. Employee and managerial motivation. Job-Centered and Employee-Centered Leadership,… Through interviewing leaders and followers, researchers identified two distinct styles of leadership: 1. Job-centered leadership 2. Employee-centered leadership. Likert suggested that a job-centered leader is a leader who closely supervises and directs the work of others. Focuses on completing the task Uses close supervision Subordinates perform their tasks using specified procedures dictated by the leader or manager. Job-Centered and Employee-Centered Leadership,… This leader relies on coercion, reward, and legitimate power to influence the behavior and performance of followers. Leaders exhibiting this leadership style seem to view concern for people an important luxury which they cannot always afford. In some respects, this is a perception that the job must be accomplished and people are expendable as long as the job gets done. Job-Centered and Employee-Centered Leadership,… There were many examples of this style in industries in the 1940s and 1950s and in wartime military operations. More recently, leaders of this stripe are commonly known as “micro-managers.” Managers who give excessive supervision Managers who do not empower their subordinates Initiating Structure and Showing Consideration C) Ohio State studies: This study was conducted by the Bureau of Educational Research at Ohio State University after World War II. The researchers identified two leadership behaviors: Initiating structure Consideration Initiating Structure: It is defined as leadership that implies the rigid structuring of job tasks as well as follower responsibilities. Initiating Structure and Showing Consideration,... Leaders take action to define the: Relationship between themselves and staff. Role each staff member will assume. Leaders are: Task-oriented Plan in detail Direct followers’ work activities Provide explicit schedules Rule with an iron hand, etc. Rigorous control Initiating Structure and Showing Consideration,... Measures of initiating structure are: Trying out new ideas, Encouraging slow workers to work harder, Meeting deadlines, Meeting at scheduled times, Making sure everyone works to capacity, etc. The leader with a high initiating structure tendency focuses on goals and results. Initiating Structure and Showing Consideration,... Task related leadership attitudes and behaviors include: Adaptability to the situation; Direction setting to produce a change; High performance standards; Risk-taking and a bias for action; Hands-on guidance and feedback Getting one’s hands dirty doing on technical work; Stability of performance: remaining steady even under uncertainty; and ability to ask tough questions. Initiating Structure and Showing Consideration,... Showing Consideration: It means Being sensitive to followers; Respect to followers’ ideas and feelings; Taking action to develop mutual trust; Showing appreciation; Listening to problems; Seeking input from followers; Two way communication; Being supportive; Maintaining friendship with followers, etc. Initiating Structure and Showing Consideration,... Measures of consideration: Being helpful, Treating all people as equals, Willing to make changes, Standing behind subordinates, Doing things to make group membership pleasant. The leader with a high consideration tendency supports open communication and participation Initiating Structure and Showing Consideration,... Relationship oriented attitudes and behaviors include: Aligning people: getting people pulling in the same direction and smoothly working together; Concern building and collaboration; Creating inspiration and visibility; Satisfying higher level needs; Giving emotional support and encouragement; Promoting principles and values; and Being a servant leader. Initiating Structure and Showing Consideration,... (High) Low Structure High Structure and and High Consideration High Consideration Consideration Low Structure High Structure (Low) and and Low Consideration Low Consideration Initiating Structure and Showing Consideration,... They found that: Employee turnover rates were lowest and employee satisfaction highest under leaders who were rated high in consideration; Conversely, leaders who were rated low in consideration and high in initiating structure had high grievance and turnover rates among their employees. Subordinates’ ratings of their leadership effectiveness depended not so much on the particular style of the leader as on the situation in which the style was used. The Managerial Grid One conclusion from the Ohio State and Michigan studies is that leadership style may well not be unidimensional. Both task orientation and employee orientation can be crucial to superior performance. The Managerial Grid, developed by Robert Blake and Jane Mouton to help measure a manager’s relative concern for people and tasks, reflects just this bidimensional nature of leadership The Managerial Grid identifies a range of management behaviours based on various ways Initiating Structure and Consideration, … High 1,9 9,9 Country Club Team management management 5,5 Concern for People Middle of the road Medium (Organization Man) management Initiating Structure and Consideration, … Blake and Mouton argue strongly that the 9,9 management style is the most effective type of leadership behaviour. They believe this approach will, in almost all situations, result in: Improved performance Low absenteeism and turnover High employee satisfaction. Criticisms of Behavioral Approach The relationship between leader behaviors and subordinate performance and satisfaction are not necessarily clear-cut. The behavior approach ignores the situation in which leadership takes place. Both trait and behavioral theories tried to identify the one best leader or style for all situations 2.3 Individualized Leadership (ILP) Individualized leadership is based on the idea that a leader develops a unique relationship with each follower, which determines : How the leader behaves toward the member and How the member responds to the leader. Here, leadership is viewed as a series of two persons interaction. Dyadic relationship refers to the individualized relationship between a leader and each follower in a work unit. Dyadic theory is an approach to leadership that attempts to explain why leaders vary their behavior with different followers. Dyadic theorists focus on the development and effects of separate dyadic relationships between leaders and followers. Individualized Leadership,... The dyadic view focuses on the concept of exchange. Leaders can meet followers’ emotional needs and offer a sense of support for the followers’ self-worth; Emotional Needs and Sense of Support Leaders Followers Followers provide leaders with commitment and high Commitment and High performance. Performance Leaders Followers Vertical Dyadic Linkage (VDL) Theory VDL theory examines: How leaders form one‐on‐one relationships with followers, and How these often create in‐groups and out- groups within the leader’s work unit. In‐group Includes followers with strong social ties to their leader in a supportive relationship characterized by high mutual trust, respect, loyalty, and influence. Out‐group Includes followers with few or no social ties to their leader, in a strictly task‐centered Vertical Dyadic Linkage (VDL) Theory,... Characteristics of In‐Groups Participate in important decision making Are given added responsibility Have greater access to the leader Experience greater support and positive influence from the leader Reciprocity or high exchange Granted special favors from the leader Mutual reinforcement based on common needs and interests More likely to share with own group members than with members of other groups Vertical Dyadic Linkage (VDL) Theory,... Characteristics of Out‐Groups Are managed according to the employment contract requirements Receive little inspiration, encouragement, or recognition Do not experience positive relationships and influence Leader–Member Exchange (LMX) Theory LMX is the quality of the exchange relationship between an employee and his or her superior. Face‐to‐face leader–member interaction is critical in organizations. Assumes that leaders have: Limited amounts of social, personal, and organizational resources, and Tend to distribute them among followers selectively. Leaders do not interact with all followers equally, which ultimately results in the formation of LMXs that vary in quality. Leader–Member Exchange (LMX) Theory,.. High‐quality LMX relationships are characterized by: Better social support More resources More guidance for career development Greater follower input in decision making Greater negotiating latitude (freedom of action or thought) Low‐quality LMX relationships are characterized by: Less support More formal supervision Little or no involvement in decision making Leader–Member Exchange (LMX) Theory,.. Leader–Member Exchange Theory Leaders form high‐quality social exchanges (based on trust and liking) with some members and low‐ quality economic exchanges with others that do not extend beyond the employment contract. The quality of LMX affects employees’ work ethics, productivity, satisfaction, and perceptions. There is a sense among followers in the exchange relationship to reciprocate their leader’s trust and liking through “citizenship behaviors” and excellent performance. Leader–Member Exchange (LMX) Theory,.. The Influence of LMX on Follower Behavior The special relationship with in‐group followers creates certain obligations and constraints for the leader. To maintain the relationship, the leader must: Pay attention to in‐group members Remain responsive to their needs and feelings Rely more on time‐consuming influence methods such as persuasion and consultation Not resort to coercion or heavy‐handed use of authority Leader–Member Exchange (LMX) Theory,.. The basis for establishing a deeper exchange relationship with in‐group members is the leader’s control over outcomes that are desirable to the followers, which include: Helping with a follower’s career Giving special favors Allowing participation in decision making Delegating greater responsibility and authority Sharing more information Assigning interesting and desirable tasks Leader–Member Exchange (LMX) Theory,.. In return for these benefits, in‐group members are expected to: Be loyal to the leader Be more committed to task objectives Work harder Share some of the leader’s administrative duties To the leader this also represents social capital that gives him or her power and influence over followers. Leader–Member Exchange (LMX) Theory,.. Unless this cycle of behavior is interrupted, the relationship is likely to develop to a point where there is a high degree of mutual dependence, support, and loyalty. The quality of LMX is central in influencing followers’: Affective, cognitive, and behavioral experiences: o Affective: Emotional and sentimental experiences o Cognitive: Intellectual experiences o Behavioral: Social experiences Roles Fate in their organizations Leader Member Exchange (LMX) Model While the leader does the choosing, it is the followers’ characteristics that drive the decision Stages of Development of ILP. Vertical Dyad Linkage Leader-Member Exchange Partnership Development Systems and Networks Stages of Developing LMX Relations The Three‐Stage Process for Developing Positive LMX Relations Stage 1: Vertical Dyadic Linkage The leader and follower contact themselves as strangers. The leader and follower test each other to identify what kinds of behavior are acceptable. Each relationship is negotiated informally between each follower and the leader. Stages of Developing LMX Relations,.. This stage involves impression management Behaving in ways so that others perceive us how we want to be perceived. A follower’s effort to project a favorable image in order to gain an immediate benefit or improve a long‐term relationship with the leader Ingratiation(gain favor) Is the effort to appear supportive, appreciative, and respectful Self‐promotion Is the effort to appear competent and Stages of Developing LMX Relations,.. Stage 2: Leader-Member Exchange The leader and follower become acquainted They further refine the roles they will play together Mutual trust, loyalty, and respect develop between leader and follower Stages of Developing LMX Relations,.. Relationships that do not move beyond Stage 1 may deteriorate and remain at the level of an out‐group. The end result of the life cycle model of LMX relationships is the creation of actual and perceived differences between in‐group and out group members. Factors that Determine LMX Quality 1. Followers’ Attributes Proactive followers: Showinitiative even in areas outside their immediate responsibility Possess a strong sense of commitment to work unit goals Show a stronger sense of responsibility for unit success Factors that Determine LMX Quality,.. These follower attributes influence leaders to: Show support Delegate more Allow greater discretion Engage in open communication Encourage mutual influence between themselves and their followers Factors that Determine LMX Quality,.. 2. Leader–follower perceptions of each other The leader’s first impressions of the follower can influence the leader’s behavior toward the follower. A positive relationship is more likely when: o The follower is perceived to be competent and dependable o The follower’s values and attitudes are similar to those of the leader. Factors that Determine LMX Quality,.. From the follower’s perspective, leaders that are perceived to be: Competent Experienced, fair, and honest are more likely to be supported. Factors that Determine LMX Quality,.. 3. Situational factors Refer to random or planned events that provide the opportunity for leaders to evaluate a follower’s work ethic or character “Tryouts (practices)” or “role episodes (incidents)” may give leaders clues about employees Factors that Determine LMX Quality,.. A favorable exchange relationship is said to correlate with: More supportive behavior by the leader toward the follower Less close monitoring More mentoring More involvement and delegation Stages of Developing LMX Relations,.. Stage 3: Partnership Development The roles reach maturity Exchange based on self‐interest is transformed into mutual commitment to the mission and objectives of the work unit Partnership Development or Team Building The focus of this phase is on whether leaders could develop positive relationships with all subordinates, not just a few “favorites.” Leaders can reach out to create a positive exchange with every subordinate. The emphasis is on how a leader might work with each subordinate on a one-to-one basis to develop a partnership to increase performance. Partnership Development or Team Building,... Although it might not be possible to treat all followers exactly the same, each person must perceive that he or she is an important and respected member of the team. Workplace social exchanges between individual employees, work groups, and managers are critical to team building. Stage 4: Systems and Networks There is a noticeable trend of organizations seeking and getting involved in a variety of collaborative agreements. By collaborating: Organizations hope to exchange strengths with others This will allow all partners to develop timely, innovative, synergistic solutions to complex problems they could not address on their own. Systems and Networks,... From a network perspective: The focus is on relations among actors: o Individuals, work units, or organizations o These are embedded within networks of interconnected relationships that provide opportunities and constraints on behavior. A systems‐oriented prospective focuses on: How the quality of the LMX relationship affects followers at the: o Interpersonal, o Group, and o Organizational levels Systems and Networks,... Proponents of the systems and networks view contend that leader relationships are not limited to followers, but include: Peers, Customers, Suppliers, and Other relevant stakeholders in the collectives of workgroups and organization‐wide networks Systems and Networks,... The organization is viewed as a system of interrelated parts To be effective, groups need to manage “boundary‐spanning (stretch, spread, or reach)” relationships with other groups in their organization and external members in order to gain access to information and resources. Boundary Spanning Leader Behaviors Respond Respondto to external external demands&& demands Define Define&& influences influences Obtain manipulate manipulateunit unit Obtainresources resources&& boundaries distribute distributeoutputs outputs boundaries Resolve Resolvestalemates stalemates Boundary BoundarySpanning Spanning Develop Develop&& &&conflicts conflicts Leader LeaderBehaviors Behaviors maintain maintainnetworks networks Sensitize Sensitizeunit unit Obtain, Obtain,filter, filter,store store&& members membersto to disseminate disseminate environmental environmentalissues issues information information 2.4 Contingency /Situational Leadership Effective leadership is contingent on matching a leader’s style to the right setting Fiedler Contingency Theory Path-Goal Theory Hersey and Blanchard’s Situational Leadership Theory Vroom- Jago Model Introduction,... The central focus of Contingency/Situational leadership research was the situation in which leadership occurred. It addresses the importance of the particular leadership situation or environment. o Leadership behavior needed to enhance performance depends in part on the circumstances. o Effective leadership in one situation may not be considered effective in a different situation. o Effectiveness of leader behavior is contingent upon organizational situations. Thus, contingency theories explain the relationship Introduction,... Situational theories of leadership proposed that leadership effectiveness depends on the fit among: Personality The task to be accomplished Power Situation Attitudes Perceptions These theories are also called “contingency theories” because the theory is contingent or dependent upon the needs or circumstances of the situation. Assumptions The best action of the leader depends on a range of situational factors. When a decision is needed, an effective leader does not just fall into a single preferred style. Factors in the condition influence leadership effectiveness There is no one best way of leadership! Introduction,... The contingencies most important to leadership are: Style Behavio Leaderr Outcomes: Traits (Performanc Needs e, satisfaction Maturit Task etc) y structure Trainin Systems Environme g nt Cohesio Follower Situation ns Situational Theories of Leadership,… The situational theories contend that four factors can influence leadership effectiveness: 1. The personal characteristics of the leader; 2. The nature of the job; 3. The nature of the organization; 4. The nature of the people who follow. Situational Theories of Leadership,… Personal characteristics of the leader: This is where the personal traits or personal characteristics come into play: the leader’s: Drive; a broad term which includes achievement, ambition, energy, tenacity (firmness), and initiative Technical skills and abilities; Personal motivation to achieve; Past experiences and expertise; Vision of the task to be accomplished Path to accomplish the task ( depends upon what task to accomplish). Situational Theories of Leadership,… Nature of the job: The task must be well defined. There should not be lack of direction and focus. More complex jobs can often be accomplished with better performance than routine tasks when followers are motivated to want to perform tasks that challenge and excite them. Situational Theories of Leadership,… Nature of the organization: The corporate culture; Organizational rules and politics; The time and resources available Organizational expectations Nature of the followers: Personalities and values, needs, motivations, and past experience and expertise. Their mix may also impact the leader’s effectiveness. Situational Theories of Leadership,… Situational theories to be discussed include: Fiedler’s contingency theory Path-Goal theory Hersey-Blanchard theory The Vroom-Jago model Fiedler’s Contingency Theory This model attempted to link leadership style with organizational situation most favorable for his/her success. It proposes that effective leadership depends upon the: Proper match between the leader’s style of interacting with followers and Degree to which the situation allows the leader to control and influence. Fiedler’s Contingency Theory,... The cornerstone of this theory is the extent to which the leader’s style is relationship- oriented or task-oriented. Leadership style was measured with a questionnaire—the least preferred coworker (LPC) scale. The scale has a set of bipolar adjectives along an 8-point scale. E.g. It measures your style by having you describe a coworker with whom you had difficulty completing a job (not necessarily someone you dislike, but someone with whom you least like to work with). After you choose this person, the LPC instrument asks Adjectives 8 7 6 5 4 3 2 1 Adjectives Pleasant Unpleasant Friendly Unfriendly Rejecting* Accepting Tense* Relaxed Distant* Close Cold* Warm Supportive Hostile Boring* Interesting Quarrelsome* Harmonious Gloomy Cheerful (depressing*) Open Closed Backbiting(unki Loyal nd)* Untrustworthy* Trustworthy Considerate Inconsiderate Nasty Nice (horrible)* Agreeable Disagreeable Insincere* Sincere Fiedler’s Contingency Theory,... Leadership styles are described as: Task-motivated (Low LPCs)/task oriented Leaders are concerned primarily with reaching a goal Relationship-motivated (High LPCs)/relationship oriented Leader Style Leaders are Measurement Scale (Fiedler) concerned with developing close interpersonal relationships Least Preferred Co-Worker (LPC) Scale High LPCs = Relationship-motivated/Relationship oriented Low LPCs = Task-motivated/Task oriented Fiedler’s Contingency Theory,... Fiedler’s model presents the leadership situation in terms of three key elements: 1. The quality of leader-member relations Group atmosphere and members’ attitude toward and acceptance of the leader. 2. Task structure Extent to which tasks performed by followers are defined, involve specific procedures, and have clear goals. 3. Position power( extent to which the leader has power over making important decisions such as hiring, firing and rewarding) Fiedler’s Contingency Theory,... Leader-Member Relations Refers to the group atmosphere and the degree of confidence, loyalty, and attraction of followers for leader Group atmosphere – Good: High degree of subordinate trust, liking, positive relationship Poor – little or no subordinate trust, friction exists, unfriendly Fiedler’s Contingency Theory,... Task Structure Concerns the degree to which requirements of a task are clear and spelled out. High Structure: requirements/rules - are clearly stated/known path to accomplish - has few alternatives task completion - can be clearly Fiedler’s Contingency Theory,... Low Structure: requirements/rules - not clearly stated/known path to accomplish - has many alternatives taskcompletion - cannot be clearly demonstrated/verified unlimited number - correct solutions Fiedler’s Contingency Theory,... Position Power Designates the amount of authority a leader has to reward or punish followers Strong Power: o Authority to hire or fire, give raises in rank or pay Weak Power: o No authority to hire or fire, give raises in rank or pay Fiedler’s Contingency Theory,... Situations that are rated most favorable: Good leader-follower relations, high structure (Defined tasks ), & Strong leader position power Fiedler’s Contingency Theory,... Situations that are rated least Favorable: Poor leader-follower relations, Unstructured tasks (low structure), & Weak leader position power Situations that are rated moderately Favorable: Fall in between these extremes Fiedler Leadership Model According to the model: Effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control Identifying Leadership Style: Least-Preferred Co- worker (LPC) determines leadership style (fixed trait) – Relationship oriented – Task oriented Match leader’s style with degree of situational control – Leader-member relations – Task structure – Position power Fiedler Model: Matching Leaders to Situations Fiedler Model: Matching Leaders to Situations There are eight possible situations in which leaders can find themselves in. By matching their LPC score with these eight different situations leaders can see where they will be most effective. For example, categories four through six would be better suited to relationship oriented leaders because Fielder proposes that they perform best in moderately favorable situations. Fiedler proposes that leadership style is fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit that style you need to change leader. Fiedler’s Contingency Theory,... Example: Situation Leader–Member Relation – Good Task Structure – High Position Power – High Category – 1 Low LPC – (Individual who is task-oriented will be effective) By measuring Leader’s LPC score and the 3 situational variables, it is possible to predict whether a leader will be effective in a particular setting. Path-Goal Theory This theory centers on how leaders motivate subordinates to accomplish designated goals Emphasizes the relationship between the Leaders’ style Characteristics of the subordinates Work setting The goal is to enhance employee performance and satisfaction by focusing on employee motivation Path-Goal Theory,... Motivational principles are based on Expectancy Theory. So, what motivates subordinates? Subordinates will be motivated if they believe: 1. they are capable of performing their work 2. that their efforts will result in a certain outcome 3. that the payoffs for doing their work are worthwhile Path-Goal Theory,... Leadership generates motivation when: 1. It increases the number and kinds of payoffs (payments) subordinates receive from their work 2. Makes the path to the goal clear and easy to travel through with coaching and direction 3. Removes obstacles and roadblocks to attaining the goal Path-Goal Theory,... Path-Goal Theory,... Path-Goal Theory,... Path-Goal Theory Suggests: Each type of leader behavior has a different kind of impact on subordinates motivation. Whether or not a particular leader behavior is motivating is contingent on: – subordinate characteristics – task characteristics Path-Goal Theory,... Four Leader Behaviors of path-goal theory: 1. Directive leader 2. Supportive leader 3. Participative leader 4. Achievement-oriented leader Directive Leadership Leader who gives subordinates task instruction including: What is expected of them How task is to be done Timeline for task completion Leader - sets clear standards of performance makes rules and regulations clear to subordinates Path-Goal Theory,... Supportive Leadership Refers to being friendly and approachable as a leader and includes: Attending to well-being and human needs of subordinates’ Using supportive behavior to make work environment pleasant Treating subordinates as equals and give them respect for their status Path-Goal Theory,... Participative Leadership Leader who invites subordinates to share in the decision-making A participative leader: Consults with subordinates Seeks their ideas and opinions Integrates their input into group/organizational decisions Path-Goal Theory,... Achievement-Oriented Leadership Leader who challenges subordinates to perform work at the highest level possible An achievement oriented leader: Establishes a high standard of excellence for subordinates Seeks continuous improvement Demonstrates a high degree of confidence in subordinates’ ability to establish and achieve challenging goals Path-Goal Theory,... Subordinate Characteristics Determine how a leader’s behavior will be interpreted by subordinates in a given work context. Researchers focus on subordinates’ Need for affiliation (association or relationship) Preferences for structure (less uncertainty) Desires for control (Locus of Control) Self-perceived level of task ability Path-Goal Theory,... Strong need for affiliation – Friendly and concerned leadership is a source of satisfaction Supportive Leadership Preference for Structure – Dogmatic and authoritarian Leadership provides psychological structure, task clarity and greater sense of certainty in work setting Directive Leadership Path-Goal Theory,... Desire for Control – Internal locus of control Leadership that allows subordinates to feel in charge of their work and makes them an integral part of the decision-making process Participative Leadership – External locus of control Leadership that parallels subordinates feelings that outside forces control their circumstances Directive Leadership Path-Goal Theory,... Perception of their own ability – specific task – As perception (opinion or observation) of ability and competence goes up, need for highly directive leadership goes down. Directive leadership may become redundant. Path-Goal Theory,... Task Characteristics: Design of subordinates’ task Organization’s formal authority system Primary work group of subordinates Task situations that require leader involvement Path-Goal Theory,... Task Leader involvement Situation Unclear and Leader needs to provide ambiguous structure Highly Leader needs to provide repetitive support to maintain subordinate motivation Weak formal Leader needs to assist authority subordinates by making rules and work requirements clear Non-supportive Leader needs to help build Path-Goal Theory,... Obstacles Anything in the work setting that gets in the way of subordinates They create excessive uncertainties, frustrations, or threats for subordinates Leaders responsibility is to help subordinates by: Removing the obstacles Helping subordinates around them Assisting with obstacles will increase Subordinates’ expectations to complete the task Their sense of job satisfaction Hersey and Blanchard’s Situational Leadership Theory The model focuses on the characteristics of followers as the: important element of the situation and subsequent determination of effective leader behavior. Emphasis is on the approach leaders apply on the job depending on followers willingness to do a job. It states that followers vary in readiness level. The leader must properly judge or intuitively know the maturity (developmental) level of followers and apply a leadership style that fits that level. Hersey and Blanchard’s Situational Leadership Theory,.. It argues that successful leadership is achieved by: Selecting the right leadership style which is contingent on the level of the followers’ readiness. Acceptance: Leadership effectiveness depends on whether followers accept or reject a leader. Readiness: The extent to which followers have the Hersey and Blanchard’s Situational Leadership Theory,.. Low readiness level: When followers are at a low level of readiness because of: Poor ability and skills, Little experience, Insecurity, Unwillingness to take responsibility for their own task behavior Competence problem Telling style is appropriate When one or more followers exhibit very low levels of readiness, the leader has to be very specific, telling followers exactly: what to do, how to do it, and when. Hersey and Blanchard’s Situational Leadership Theory,.. Moderate readiness level Followers might lack some education and experience for the job but they demonstrate high confidence, ability, interest, and willingness to learn. Use selling leadership style With a selling style, the leader gives some direction but also seeks input from others and clarifies tasks for followers rather than merely instructing that tasks be Hersey and Blanchard’s Situational Leadership Theory,.. High readiness level Followers might have the necessary education, skills, and experience, but they might be insecure in their abilities and need some guidance from the leader. (Confidence problem) Use a participating style By using a participating style, the leader can guide followers’ development and act as a resource for advice and assistance. Hersey and Blanchard’s Situational Leadership Theory,.. Very high readiness level When followers have very high levels of education, experience, and readiness to accept responsibility for their own task behavior. Use the delegating style of leadership The leader can delegate responsibility for decisions and their implementation to followers, who have the skills, abilities, and positive attitudes to follow through. The leader provides goal and sufficient authority to do the tasks as followers see fit. Highly educated professionals such as lawyers, college professors, and social workers would typically fall into this category. Hersey and Blanchard’s Situational Leadership Theory,.. Links leader’s behavioral style with subordinates’ task readiness Follower Appropriate Leader Characteristics Style Low readiness Level Telling (Directing) Moderate readiness Level Selling (Coaching) High readiness Level Participating (Supporting) Very high readiness Level Delegatin g Hersey and Blanchard’s Situational Leadership Theory,.. Telling (Directing): High task and low relationship leadership The leader defines the roles needed to do the job and tells followers what, where, how and when to do the tasks. Selling (Coaching): High task and high relationship leadership The leader provides followers with structured instructions but is also supportive. Participating (Supporting): Low task and high relationship leadership The leader and followers share in decisions about how best to complete a high-quality job. Delegating: Low task-low relationship leadership Hersey and Blanchard’s Situational Leadership Theory,.. . Hersey and Blanchard’s Situational Leadership Theory,.. The Vroom-Jago Model The theory starts with the idea that a leader faces a problem that requires a solution. Decisions to solve the problem might be made by a leader alone or via inclusion of a number of followers. It tells the leader precisely determines the correct amount of participation by followers to use in making a particular decision. The model has three major components: 1. Leader participation styles, 2. A set of diagnostic questions with which to The Vroom-Jago Model,... A set of management decision styles: o Defined five different decision procedures: o Two are autocratic (A1 and A2) o Two are consultative (C1 and C2) o One is group based (G2) The five management decision styles: Autocratic type 1 (AI) Model Autocratic Type 2 (AII) Model Consultative Type 1 (C1) Model The Vroom-Jago Model,... Summary of management decision rules The Vroom-Jago Model,... A set of diagnostic questions with which to analyze a decision situation: A. Is there a quality requirement such that one solution is likely to be more rational than another? B. Is there sufficient information to make a high- quality decision? C. Is the problem structured? D. Is acceptance of the decision by subordinates critical to effective implementation? E. If you alone make the decision, is it reasonably certain that it would be accepted by your subordinates? The Vroom-Jago Model,... In terms of leader participation styles, there are five levels of follower participation in decision making 1. Decide: the leader makes the decision and either announce or “sell” it to the group 2. Consult individually: the leader presents the problem to group members individually, get their suggestions, make the decision 3. Consult group: the leader presents the problem to the group members in a meeting, get their suggestions, & then make the decision 4. Facilitate: the leader presents the problem to the group in a meeting, act as facilitator, defining the problem to be solved and the boundaries within which the decision must be made. The objective is to get concurrence on a decision 2.5 Contemporary leadership Theories 2.5.1 Charismatic Leadership Charisma is a Greek word meaning “divinely inspired gift” – It is a special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader (Weber, 1947). – These definitions make it clear that charisma is not a learned characteristic. Charismatic Leaders: Born or Made? Charisma is partially attributed to genetics and partially to training and experience Charisma can be created by Developing characteristics of charisma: Being optimistic Being passionately enthusiastic Communicating with behaviors, not just words Drawing others in – inspire others Tapping into emotions – bring out the potential in others Charismatic Leadership,... Charismatic Leadership Theory (House, 1976) – Charismatic = powers that could not be clearly explained by logical means. – Charismatic leaders act in unique ways that have specific charismatic effects on their followers. – Charismatic leaders are those who have charismatic effects on their followers to an unusually high degree: Followers want to follow them, Followers want to be near them, Followers want to be recognized by them, etc. – Followers enjoy being with a charismatic leader because they feel inspired, correct, and important. Charismatic Leadership,… Charismatic leadership is a self confident, enthusiastic leader who is able to win followers’ respect and support for his or her vision of how good things could be. Most researchers who study charisma agree it is a collection of personal characteristics, not a single trait. – Vision – A person’s potential for risk taking; – Ability to tolerate ambiguity and dissonance (conflict or disagreement); Sensitivity toward followers – Personal appearance; and other qualities (e.g., Extraordinary behaviors). Stages of Charismatic Leadership Four stages of charismatic leadership: – First stage: The leader Assesses the environment for unexploited opportunities; Remains sensitive to followers needs; and Adapts and formulates a vision. – Second stage: The leader Communicates his or her vision to followers by distinguishing the: – status quo as unacceptable and – vision as the most acceptable alternative. Stages of Charismatic Leadership,… – Stage three: The leader Solidifies trust and commitment to the followers through: – expertise, – risk-taking, – self-sacrifice and – Unconventional/extraordinary behavior. – Stage four: The charismatic leader Serves as a role model and motivator and Convinces the followers that they can achieve the vision. Stages of Charismatic Leadership,… Stage 1 Stage 2 Stage 3 Stage 4 1.Detecting 1. 1. Building trust 1. Demonstrating the through technical means to achieve the unexploited Communicating expertise, personal vision through role opportunities and the vision modeling, deficiencies in the risk taking, self empowerment, and sacrifice and present situation unconventional unconventional tactics behavior 2. Being sensitive 2. Articulating the status quo as to followers’ needs unacceptable and the vision as the most attractive alternative 3. Formulating an 3. Articulating idealized strategic motivation to lead followers. vision Example of Charismatic Leadership Sam Walton (CEO Wal-Mart) is considered by many to have possessed charismatic qualities. – He worked hard to explain his vision of retailing and serving the customer. – He would visit Wal-Mart stores to continually inform his associates that: Customer service is the first, second, and third priority that must be accomplished in order for the company to become the top retailer. Example of Charismatic Leadership ,… He paid attention to his employees and his customers-the human assets of business. Walton had a “gift” for making other people “feel” good about working for him and buying his products and service. Other examples of charismatic leaders: – Winston Churchill, Martin Luther King Jr., Mahatma Gandhi, Mother Teresa and Margaret Thatcher, Nelson Mandela Example of Charismatic Leadership ,... “There is only one boss, and whether a person shines shoes for a living or heads up the biggest corporation in the world, the boss remains the same. It is the customer! The customer is the person who pays everyone’s salary and who decides whether a business is going to succeed or fail. In fact, the customer can fire everybody in the company from the chairman (CEO) on down, and he can do it simply by spending his money somewhere else. Literally everything we do, every concept perceived, every technology developed and associate employed, is directed with this one objective clearly in mind – pleasing the customer.” Sam M. Walton, CEO Wal-Mart Charisma and Vision Charismatic leadership focuses on the vision aspect of leadership. Most agree charismatic leaders have the ability to share the vision of what can be and what should be with their followers. Vision-based charismatic leadership encourages followers to perform acts without regard for personal safety, consequences, or results. – On the negative side, vision-based charismatic leaders such as Josef Stalin and Adolf Hitler secured great commitment to failing, personally demeaning (depreciating), and tragic goals. Charisma and Vision,.. As management scholar and writer Peter Drucker notes, “charisma sometimes becomes the undoing of leaders.” – Thus, charisma itself is value-neutral: It does not distinguish between moral, immoral, or amoral (unethical) intentions. – Some charismatic leadership can lead to fanatical (obsessive) behavior of followers when used by the wrong person. – It can also lead to heroic self-sacrifice by followers when used for entirely different purposes and in different circumstances. The Potential Dark Side of Charismatic Leadership Use organizational resources for personal benefit Remake organizations in their own image and leave no plans for succession when they leave. Allow self-interest and personal goals to override organization’s goals 2.5.2 Transactional and Transformational Leadership Both theories build upon some of the features of situational theories: Relationship-oriented leadership styles and Path-goal leadership behaviors that motivate performance. Transformational leadership also has roots in charismatic leadership behavior. Transactional and Transformational Leadership,… Transactional leadership is defined as a type of leadership where the leader identifies what types of rewards followers want and helps them achieve a level of performance that results in rewards that are based on their performance. Focuses on the exchanges TRANSACTIONAL that occur between leaders and their followers Transactional and Transformational Leadership ,… The exchange dimension is so common that you can observe it at all walks of life. - Example: - No new taxes = votes. - Sell more cars = bonus. - Turn in assignments = grade. - Surpass goals = promotion Transactional and Transformational Leadership ,… Transformational leaders have the ability to inspire and motivate followers to achieve results greater than originally planned through internal rewards rather than external rewards. They motivate followers to work for longer-term and more substantial goals than short-term self-interests. Process of engaging with others to create a connection that TRANSFORMATIONAL increases motivation and morality in both the leader and the follower Transactional and Transformational Leadership,... Both theories focus on rewards to the follower, but do so through different means and in different forms. – Transactional leaders communicate to followers what has to be done and what they need to do to achieve what they (the followers) want in terms of external rewards, such as more pay, better conditions, or some lucrative goal. – Transformational leaders motivate or inspire their followers to accomplish a vision or goals through intrinsic rewards that are internally rewarding to followers, such as self- satisfaction or being part of the team. Transactional Leadership It is also called “management by exception.” The transactional leader helps followers identify what must be done to accomplish the desired results, taking into account the person’s self-concept and esteem needs. The leader frames the rewards for the expected performance and then utilizes path-goal concepts to clearly show the follower how to achieve the rewards. The leader then steps aside and does not intervene unless the goals are not being achieved; hence, it is called management by exception. Transactional Leadership,… Transactional leadership is defined as leadership that motivates followers by exchanging rewards for high performance and noticing and reprimanding subordinates for mistakes and substandard performance. Leader relies on contingent rewards—rewards that depend on the follower doing what needs to be done in order to get the rewards. E.g. Followers may need to: – Increase sales to get better salaries; – Lower costs to get bigger bonuses; or to – Increase the workload to obtain promotions Transformational Leadership,... Core elements – Transformational leadership is concerned with emotions, values, ethics, standards, and long-term goals – Transformational leadership includes: Assessing followers’ motives, Satisfying their needs, and Treating them as full human beings. Transformational Leadership,... Encompassing approach – Transformational leadership describes a wide range of leadership influence Specific: one-to-one with followers Broad: whole organizations or entire cultures – In transformational leadership follower(s) and leader are inextricably (indistinguishably) bound together in the transformation process Transformational Leadership,... Leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential. Examples: – Mohandas Gandhi – raised the hopes and demands of millions of his people and in the process has changed himself. – A manager attempts to change his/her company’s corporate values to reflect a more humane standard of fairness and justice – In the process both manager and followers may emerge with a stronger and higher set of moral values. Transformational Leadership,... Transformational leaders have the ability to inspire and motivate followers to achieve results that exceed expectations. This ability is generally based on three personality characteristics: – Charisma; – Individual attention; – Intellectual stimulation; Transformational Leadership,… Charisma: – The leader is able to instill a sense of value, respect, and pride, and to articulate a vision. Individual attention: – The leader pays attention to followers’ needs and assigns meaningful projects so followers grow personally and professionally. Intellectual stimulation: – The leader helps followers rethink rational ways to examine a situation and encourages followers to be creative. Transformational Leadership,… This theory is based on ten functions that define how leaders achieve a vision by working through others to bring about change. 1. Searches for performance improvement and innovative opportunities. 2. Experiments and takes risks—challenging the status quo. 3. Develops a high performance vision. 4. Enlists others to obtain their acceptance of the vision 5. Fosters collaboration —bringing people together to realize vision 6. Strengths the capacity of others to achieve the vision’s goals. Transformational Leadership,… 7. Sets an example of being a model of the behaviors and beliefs. 8. Plans small wins by setting up a series of small goals that contribute to the vision’s overarching goals. 9. Links rewards to performance: Making expectations known Making performance is measurable Providing rewards that people value Removing obstacles toward achieving task goals and receiving rewards; Being consistent in rewarding performers. 10. Celebrates accomplishments Models of Transformational 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 team or organization addressing higher-level needs Models of Transformational Leadership,... Leaders who exhibit TL: have a strong set of internal values and ideals are effective in motivating followers to support greater good over self-interest Additive Effect of Transformational Leadership. Transformational vs. Transactional Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Full Range of Leadership Model Evaluation Of Transformational Leadership Transformational leadership – Effectively used in various job levels and disparate occupations – Tends to be more effective in smaller companies – Works better when the leader is closer to the followers – Has positive job outcomes such as lower turnover and lower absenteeism 12-175 Servant Leadership Servant Leaders: Go beyond their own self-interest and focus on opportunities to help followers grow and develop – Emphasize persuasion (Servant leaders don’t use power to achieve their goal) Effects of servant leadership: – Higher levels of commitment to the supervisor, self- efficacy, and perceptions of justice – Increased team potency and higher group performance – A greater focus on growth and advancement which leads to higher levels of creative performance Servant leadership may be more effective in certain cultures – East Asian prototype 12-176