© Farhan Mir IMS Current Issues in Management M Phil Leadership Key Perspectives and Research Findings Course Lecturer: Farhan Mir

© Farhan Mir© Farhan Mir

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Current Issues in Management

M Phil

LeadershipLeadershipKey Perspectives and Research

Findings

Course Lecturer: Farhan Mir


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Expected Topics1. Leadership2. Organizational Citizenship Behavior (OCB)3. Managing Diversity4. Business Ethics and CSR5. Change Management (Organizational

Development)Mid1. Creativity, Innovation and Entrepreneurship2. Emotional Management3. Technology Management – IT Management4. Cross-Cultural Management5. Organizational Identity


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Some important Resources• Journals

– Academy of Management Review (AMR)– Academy of Management Journal (AMJ)– Journal of Human Relations – Leadership Quarterly– Journal of Leadership– Journal of Organizational Behavior– Journal of Management Issues– Annual Sociological Review– Journal of Organizational Studies

• Some of these are available through the HEC Digital Library via www.bzu.edu.pk– JStore could be a useful starting point


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Franklin D. Roosevelt (FDR) and Adolf Hitler


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Our Focus: Business Leaders

Bill Gates remains the iconic technologist, entrepreneur, and

business leader of his generation Gates

launched Microsoft Windows in 1985 and is consistently ranked as one of the richest men

in the world.

five industries that Steve Jobs has upended - computers, Hollywood, music, retailing, and wireless phones. At this moment, no one has more influence over a broader swath of business than Jobs.

Sam Walton founded Wal-Mart and Sam’s Club. Wal-Mart was founded in 1962 but experienced great growth during the 1980s.Walton was the richest man in America from 1985-1988.


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Business Leaders…

Katsuaki Watanabe CEO Toyota

A.G. Lafley Chairman and CEO, Procter & Gamble

Lakshmi Mittal CEO, Mittal Steels


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Leadership Challenge

It has never been tougher to be a leader. You have to be at your best every day, making it happen, supporting your people.


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Leadership Defined

Leadership is a process whereby an individual

influences a group of individuals to achieve a common goal.


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Many Research Questions….

11

What is leadership?Who is a leader?

How do you develop a leader?How do you identify a potential leader?

What are the Characteristic of an Effective Leader

Do Effective Leaders enhance Company Performance?

Even How do you become a leader?


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Trait vs. Process Leadership

• Certain individuals have special innate or inborn characteristics or qualities that differentiate them from non-leaders. – Resides in select

people– Restricted to those

with inborn talent

Trait definition of leadership:

LEADER

FOLLOWERS

Leadership• Height• Intelligence• Extroversion• Fluency• Other Traits


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Trait vs. Process Leadership

• Leadership is a property or set of properties possessed in varying degrees by different people (Jago, 1982).– Observed in leadership

behaviors– Can be learned

The process definition of Leadership:

LEADERLEADER

LeadershipLeadership

(Interaction)(Interaction)

FOLLOWERSFOLLOWERS


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Leadership & ManagementZaleznik (1977)

ManagersUnidirectional Authority

LeadersMultidirectional Influence

• Are reactive

• Prefer to work with people on problem solving

• Low emotional involvement

• Are emotionally active & involved

• Shape ideas over responding to them

• Act to expand available options

• Change the way people think about what is possible


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Leadership & Management Kotter (1990)

ManagementActivities

LeadershipActivities

“Produces order and consistency”

• Planning & Budgeting

• Organizing & Staffing

• Controlling & Problem Solving

“Produces changeand movement”

• Establishing direction

• Aligning people

• Motivating / Inspiring

Major activities of management & leadershipare played out differently; BUT, both are essential

for an organization to prosper.


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Leadership Background

• Four Major Threads of Leadership– Trait theory– Behavior theory (getting things done and relating

well with people).– Situational theory– Values-based transformational theory


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Leadership Background – Trait theory (Zaccaro, Kemp, and Bader) - Alternative

dispositional predictors - Distal or Proximal predictors– The Information-Processing Perspetive (D. J. Brown, Scott,

and Lewis) – social and cognitive psychology - person-perception approach

– Situational and Contingency theories of leadership (Ayman) - Success of leadership is a function of Contingencies - leaders are capable of environmental monitoring and of adjusting

– Transformational, charismatic, and visionary theories of leadership (Sashkin) - hybrid-integrative theory - leaders as creators and shapers of organizational contexts.


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Current Research Focus on Leadership• Leadership and Culture

– Leadership and Cultural Transformation – Transformational Leaders– Impact of National Culture on Leaders (Den Hartog and Dickson)

– Contextual vs. Universal Traits of Leaders

• Leadership and Gender– Gender-based expectations of leaders (Eagly and Carli)

• Ethics and Leadership– Ethical Well being of Leaders (Ciulla) - the ethics of leadership and leaders’ degree of moral

development– Leadership in Ethics and CSR – Ethical Leadership

• Leadership Success– Leader’s Success in terms of Effectiveness – Leader’s advancement and ability to transform followers

(McCauley)

• Distributed Leadership– Emergent property of a group or network of interacting individuals (Gronn)

– Concertive action - people work together in such a way that they pool their initiative and expertise

– openness of the boundaries of leadership – varieties of expertise are distributed across the many, not the few


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Leadership- Trait Approach


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Trait Theories – the earliest work on Leadership

• Trait Research from 1904 TO 1947– Research, encouraged by the need to identify

potential military leaders, that sought to answer the question “What makes a leader?”

– Attempted unsuccessfully to identify a single trait or universal cluster of traits that would differentiate leaders from followers.

– Found a number of positive correlations for individual traits.


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Trait Theories of Leadership (cont’d)

• Trait Research from 1948 to 1970

– Multivariate experiments and factor analysis became the basic research tools in the study of trait and leadership consequences.

– Leadership was now considered to be based on complex groupings of traits and social interactions, rather than on a single trait or a small cluster of traits

– More research was now being conducted inside work organizations.


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Great Person Theories

• “Great Man” Theories (early 1900s)– Focused on identifying

innate qualities and characteristics possessed by great social, political, & military leaders

Trait Approach: one of the first systematicattempts to study leadership


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Great ManTheories

Early 1900s

•Research focused on individual characteristics that universally differentiated leaders from nonleaders

Traits Interacting With Situational

Demands on Leaders

1930-50s

• Landmark Stogdill (1948) study - analyzed and synthesized 124 trait studies - Leadership reconceptualized as a relationship between people in a social situation

• Mann (1959) reviewed 1,400 findings of personality and leadership in small groups - Less emphasis on situations - Suggested personality traits could be used to discriminate leaders from nonleaders

Revival of Critical Role of Traits in LeaderEffectiveness

• Stogdill (1974) - Analyzed 163 new studies with 1948 study findings - Validated original study - 10 characteristics positively identified with leadership

• Lord, DeVader, & Alliger (1986) meta-analysis - Personality traits can be used to differentiate leaders/nonleaders

• Kirkpatrick & Locke (1991) - 6 traits make up the “Right Stuff” for leaders

Historical Shifts in Trait Perspective1970’s - Early 90s

Innate Qualities

Situations

Personality / Behaviors

Today

• Intelligence• Self-Confidence• Determination• Integrity• Sociability

5 MajorLeadership

Traits


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Studies of Leadership Traits and Characteristics

Leadership Traits


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Major Leadership Traits

• Intelligence – Intellectual ability including verbal, perceptual, and reasoning capabilities

• Self-Confidence – Ability to be certain about one’s competencies and skills

• Determination – The desire to get the job done (i.e., initiative, persistence, dominance, drive)

Traits to possess or cultivate if one seeks to be perceived by others as a leader:


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Major Leadership Traits

• Integrity – The quality of honesty and trustworthiness

• Sociability – Leader’s inclination to seek out pleasant social relationships

Traits to possess or cultivate if one seeks to be perceived by others as a leader:


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Big Five Personality Factors

5-Factor Personality Model & Leadership


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5-Factor Personality Model & Leadership

Results – a strong relationship between personality traits and leadership

• Extraversion – factor most strongly associated with leadership– Most important trait of of effective leaders

• Conscientiousness – 2nd most related factor• Neuroticism & Openness – next most related

– Neuroticism negatively associated to leadership

• Agreeableness – only weakly related to leadership

Big Five & Leadership

Study using meta-analysis (Judge et al, 2002)


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Emotional Intelligence & Leadership

• people who are more sensitive to their emotions & their impact on others will be more effective leaders

Underlying Premise Definition Ability to perceive and:

– apply emotions to life’s tasks– reason/understand emotions– express emotions– use emotions to facilitate

thinking– manage emotions within

oneself & relationships


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How Does the Trait Approach Work?

Focus of Trait Approach Strengths Criticisms Application


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Focus of Trait Approach

• Focuses exclusively on leader– What traits leaders

exhibit– Who has these

traits

• Organizations use personality assessments to find “Right” people– Assumption - will increase

organizational effectiveness– Specify characteristics/traits for

specific positions• Personality assessment measures

for “fit”

LeaderLeaderPersonality

AssessmentsPersonality

Assessments


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Strengths• Intuitively appealing

– Perception that leaders are different in that they possess special traits

– People “need” to view leaders as gifted

• Credibility due to a century of research support

• Highlights leadership component in the leadership process– Deeper level

understanding of how leader/personality related to leadership process

• Provides benchmarks for what to look for in a leader


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Criticisms

• Fails to delimit a definitive list of leadership traits– Endless lists have

emerged

• Doesn’t take into account situational effects– Leaders in one situation

may not be leaders in another situation

• List of most important leadership traits is highly subjective– Much subjective experience &

observations serve as basis for identified leadership traits

• Research fails to look at traits in relationship to leadership outcomes

• Not useful for training & development


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Application

• Provides direction as to which traits are good to have if one aspires to a leadership position

• Through various tests and questionnaires, individuals can determine whether they have the select leadership traits and can pinpoint their strengths and weaknesses

• Can be used by managers to assess where they stand within their organization and what is needed to strengthen their position

Leadership TraitsLeadership Traits• IntelligenceIntelligence• Self-ConfidenceSelf-Confidence• DeterminationDetermination• IntegrityIntegrity• SociabilitySociability


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Leadership

Behavioral Theories - Style Approach


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Early Behavior Theories of Leadership

Behavioral Leadership TheoryEmphasizes leaders’ behaviors (i.e., what leaders do) in considering leadership as an activity.Examines the managerial or leadership style of the leader’s behavior towards followers.

Task-oriented behaviors focus on meeting targets and accomplishing goals.Relationship-oriented behaviors are actions taken to establish, maintain, and direct relationships with followers.


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Ohio State Studies

• Leadership Behavior Description Questionnaire (LBDQ)– Identify number of times leaders engaged in specific

behaviors• 150 questions

– Participant settings (military, industrial, educational)

– Results• Particular clusters of behaviors were typical of leaders


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University of Michigan Studies• Exploring leadership behavior

– Specific emphasis on impact of leadership behavior on performance of small groups

• Results - Two types of leadership behaviors conceptualized as opposite ends of a single continuum– Employee orientation

• Strong human relations emphasis– Production orientation

• Stresses the technical aspects of a job– Later studies reconceptualized behaviors as two independent

leadership orientations - possible orientation to both at the same time


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Blake & Mouton’s Managerial (Leadership) Grid

Leadership Grid Components

– Authority-Compliance (9,1)– Country Club Management (1,9)– Impoverished Management (1,1)– Middle-of-the-Road Management (5,5)– Team Management (9,9)– Paternalism/Maternalism (1, 9; 9,1)– Opportunism


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The Leadership

Grid®


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Authority-Compliance (9,1)

• Efficiency in operations results from arranging conditions of work such that human interference is minimal

• Heavy emphasis on task and job requirements and less emphasis on people

• Communicating with subordinates outside task instructions not emphasized

• Results driven - people regarded as tools to that end

• 9,1 leaders – seen as controlling, demanding, hard-driving & overpowering

DefinitionDefinition Role FocusRole Focus


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Country Club (1,9)

• Thoughtful attention to the needs of people leads to a comfortable, friendly organizational atmosphere and work tempo

• Low concern for task accomplishment coupled with high concern for interpersonal relationships

• De-emphasizes production; leaders stress the attitudes and feelings of people

• 1,9 leaders – try to create a positive climate by being agreeable, eager to help, comforting, noncontroversial



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Middle-of-the-Road (5,5)

• Adequate organizational performance possible through balancing the necessity of getting work done while maintaining satisfactory morale

• Leaders who are compromisers; have intermediate concern for task and people who do task

• To achieve equilibrium, leader avoids conflict while emphasizing moderate levels of production and interpersonal relationships

• 5,5 leaders - described as expedient; prefers the middle ground, soft-pedals disagreement, swallows convictions in the interest of “progress”



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Team (9,9)

• Work accomplished through committed people; interdependence via a “common stake” in the organization’s purpose, which leads to relationships of trust and respect

• Strong emphasis on both tasks and interpersonal relationships

• Promotes high degree of participation & teamwork, satisfies basic need of employee to be involved & committed to their work

• 9,9 leaders - stimulates participation, acts determined, makes priorities clear, follows through, behaves open-mindedly and enjoys working



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Leadership Styles


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How Does the Style Approach Work?

Focus of Style Approach Strengths Criticisms Application


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Strengths• Style Approach marked a major shift in leadership research from

exclusively trait focused to include behaviors and actions of leaders

• Broad range of studies on leadership style validates and gives credibility to the basic tenets of the approach

• At conceptual level, a leader’s style is composed of two major types of behaviors: task and relationship

• The style approach is heuristic - leaders can learn a lot about themselves and how they come across to others by trying to see their behaviors in light of the task and relationship dimensions


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Criticisms

• Research has not adequately demonstrated how leaders’ styles are associated with performance outcomes

• No universal style of leadership that could be effective in almost every situation

• Implies that the most effective leadership style is High-High style (i.e., high task/high relationship); research finding support is limited


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Application• Many leadership training and

development programs are designed along the lines of the style approach.

• By assessing their own style, managers can determine how they are perceived by others and how they could change their behaviors to become more effective.

• The style approach applies to nearly everything a leader does.


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Leadership

Contingency Theories


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Contingency Theories of Leadership

• The Fiedler Model (cont’d)– Proposes that effective group performance depends upon the

proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence.

– Assumptions:

• A certain leadership style should be most effective in different types of situations.

• Leaders do not readily change leadership styles.

– Matching the leader to the situation or changing the situation to make it favorable to the leader is required.


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Contingency Theories… (cont’d)

• The Fiedler Model (cont’d)– Least-preferred co-worker (LPC) questionnaire

• Determines leadership style by measuring responses to 18 pairs of contrasting adjectives.

– High score: a relationship-oriented leadership style– Low score: a task-oriented leadership style

– Situational factors in matching leader to the situation:• Leader-member relations• Task structure• Position power


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Contingency Theories… (cont’d)• Hersey and Blanchard’s Situational Leadership Theory

(SLT)– 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 ability and willingness to accomplish a specific task.

– Leaders must relinquish control over and contact with followers as they become more competent.


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Contingency Theories… (cont’d)

• Hersey and Blanchard’s Situational Leadership Theory (SLT)

– Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions:

• Telling: high task-low relationship leadership

• Selling: high task-high relationship leadership

• Participating: low task-high relationship leadership

• Delegating: low task-low relationship leadership


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Leadership

Contemporary Theories


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LMX• Researchers found that high quality leader member

exchanges produced less employee turnover, more positive performance evaluations, higher frequency of promotions, greater organizational commitment, more desirable work assignments, better job attitudes, more attention and support from the leader, greater participation, and faster career progress over 25 years.

• When leaders and followers have good exchanges, they feel better, accomplish more, and the organization prospers.


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Leader Member Exchange


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Leader Member Exchange Strengths• It makes sense by describing work in terms of those

who contribute more and those who do the bare minimum.

• Unique because it is the only theory to identify the dyadic relationship. Effective leader member exchanges are important

• Notes the importance of communication in leadership• Reminds leaders to be fair about who they let into the

in group – this is based on work performance not race, sex, ethnicity, religion, etc

• Large amount of research supports this theory


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Contemporary Views on Leadership

• Transactional Leadership– Leaders who guide or motivate their followers in

the direction of established goals by clarifying role and task requirements.

• Transformational Leadership– Leaders who inspire followers to transcend their

own self-interests for the good of the organization by clarifying role and task requirements.

– Leaders who also are capable of having a profound and extraordinary effect on their followers.


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Transformational Leadership• A process that changes and transforms people. It is concerned

with emotions, values, ethics, standards and long term goals and includes assessing followers motives, satisfying their needs, and treating them as full human beings.

• Incorporates charismatic and visionary leadership and though the leader plays a pivotal role in precipitation change, followers and leaders are inextricably bound together in the transformation process.

• The process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower.


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Charismatic Leadership

• The German sociologist Max Weber described certain leaders as having exceptional qualities—a charisma—that enabled them to motivate followers to achieve outstanding performance. Charisma is a Greek word meaning “gift bestowed by the gods.”


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Requirements forCharismatic Leadership

• Four conditions give rise to charismatic leadership:1. A crisis situation2. Potential followers in distress3. An aspiring leader4. A doctrine promising deliverance.


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A Blessing and a Curse

• "Charisma is a tricky thing. Jack Kennedy oozed it—but so did Hitler and Charles Manson. Con artists, charlatans, and megalomaniacs can make it their instrument as effectively as the best CEO's entertainers, and presidents. Used wisely, it's a blessing; indulged, it can be a curse. Charismatic visionaries lead people ahead—and sometimes astray." Fortune, January 15, 1996


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• “I never forget that I live in a house owned by all the American people and that I have been given their trust.”– Franklin D. Roosevelt


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• “We shall not capitulate... no never. We may be destroyed, but if we are, we shall drag a world with us... a world in flames.” – Adolf Hitler


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DIMENSIONS OF TRANSFORMATIONAL

LEADERSHIP

The four ‘The four ‘II’s’’s’

• Idealised Idealised iinfluence nfluence (charisma):(charisma):

- - follower admiration & respect,follower admiration & respect,

- risk sharing- risk sharing

- consideration for follower needs- consideration for follower needs

- ethical & moral conduct (trust)- ethical & moral conduct (trust)


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TRANSFORMATIONAL LEADERSHIP

• IInspirational motivation nspirational motivation - meaning & challenge to work- meaning & challenge to work

• IIntellectual stimulationntellectual stimulation - - creative problem solvingcreative problem solving

• IIndividualised considerationndividualised consideration - - listening, praising listening, praising

(Bass & Avolio, 1994)(Bass & Avolio, 1994)


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Contemporary Views• Charismatic Leadership

– An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways.

– Characteristics of charismatic leaders:• Have a vision.• Are able to articulate the vision.• Are willing to take risks to achieve the vision.• Are sensitive to the environment and follower needs.• Exhibit behaviors that are out of the ordinary.


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Personality Characteristics, Behaviors, and Effects of Followers of Charismatic Leadership


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Transformational LeadershipPros- It has been widely researched since 1970’s- It has an intuitive appeal (consistent with society’s

popular notion of what leadership means)- It treats leadership as a process that occurs between

followers and leaders- It provides a broader view of leadership that augments

other leadership models- It places a strong emphasis on followers needs, values,

and morals- Evidence supports this theory – it does work!


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Trends and Challenges in Leadership

A glimpse into New Perspectives and Research Initiatives in Leadership


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These statements show that leadership is not just the property of an individual figure.

Leadership is much more.

What is Leadership?

“She was a courageous leader” “An innovative

leadership culture flourished in the company”

“The company board showed great leadership”

“Scandinavia takes a lead on social welfare”


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Leadership Background

• Four Major Threads of Leadership– Trait theory– Behavior theory (getting things done and relating

well with people).– Leadership and GenderLeadership and Gender– Distributed LeadershipDistributed Leadership

– Situational theory• Leadership and CultureLeadership and Culture

– Values-based transformational theory• Leadership and EthicsLeadership and Ethics• Effective Leaders as transformersEffective Leaders as transformers


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`It is refreshing when you come across a clear, well-written book about leadership that is not peddling the latest gimmick, buzzword or quick fix. What makes this work really refreshing is the emphasis on the critical dimension in the title and the breadth of the author's own experience of work' - Times Higher Education

“In a highly original way, taking “Critical Theory” as a point of departure, Dr. Western helps us to obtain greater insight into the enigma of leadership.”

Manfred Kets de VriesDirector INSEAD Global Leadership Center ‘‘Leadership A Critical Text’ is an outstanding addition to the Leadership literature. This is an excellent text which takes the field to new heights in the first decade of the 21st Century".

Professor Cary L. Cooper, CBE, Professor of Organizational Psychology and Health at Lancaster University

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© Farhan Mir IMS Current Issues in Management M Phil Leadership Key Perspectives and Research Findings Course Lecturer: Farhan Mir