Copyright © 2016 Pearson Canada Inc. CHAPTER 11 Leadership

Copyright © 2016 Pearson Canada Inc.

CHAPTER

11Leadership


What is Leadership?

• Leadership: The ability to influence a group toward the achievement of a vision or set of goals

• Source of influence may be formal (via position in organization) or not (a variety of people can be called on the perform leadership roles)

• Nonsanctioned leadership: The ability to influence that arises outside the formal structure of the organization – may be as important or more than formal influence


What is Leadership?

• Organizations need both strong leadership and strong management

• Leaders needed to challenge the status quo, create visions of the future, and inspire organizational members to achieve the visions

• Need managers to formulate detailed plans, create efficient organizational structures and oversee day-to-day operations


Leadership as Supervision

• Three general types of theories:

– Trait Theories: Are leaders different from others?

– Behavioural Theories: Do Leaders Behave in Particular Ways?

– Contingency Theories: Does the situation matter?


Trait Theories

• Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders

• Not very useful until matched with the Big Five Personality Framework

• Leadership Traits– Extroversion– Conscientiousness– Openness – Emotional Intelligence (Qualified)

• Traits can predict leadership, but they are better at predicting leader emergence than effectiveness.


Behavioural Theories of Leadership

• Theories proposing that specific behaviors differentiate leaders from non-leaders

• Differences between theories of leadership:– Trait theory: leadership is inherent, so we must identify

the leader based on his or her traits

– Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders


Contingency Theories: Does the Situation Matter?

• Stress the importance of considering the context when examining leadership.

– Fiedler Contingency Model– Hersey and Blanchard’s Situational Theory– Path-Goal Theory– Substitutes for Leadership


Fiedler Contingency Model

• Effective group performance depends upon the proper match between the leader’s style and the degree to which the situation gives control to the leader.

• Least preferred co-worker (LPC) questionnaire determined whether individuals were primarily interested in:– good personal relations with co-workers, and thus

relationship oriented, or– productivity, and thus task oriented.


Fiedler Contingency Model

• Fiedler’s contingency situations:– Leader-member relations

• Degree of confidence, trust and respect members have for leader.

– Task structure• Degree to which jobs are structured.

– Position power• Degree to which leader has control over “power”: hiring, firing,

discipline, promotions, salary.

• Fiedler assumed that an individual’s leadership style is fixed.

Hersey and Blanchard’s Situational Leadership

A model that focuses on follower “readiness.” Followers can accept or reject the leader. The leader’s effectiveness depends on the followers’ response to the leader’s actions. “Readiness” is the extent to which people have the ability and willingness to accomplish a specific task.

Follower: able but unwillingLeader: needs to use a supportive and participative style.Follower: both able and willingLeader: a laissez-faire approach will workFollower: unable but willingLeader: needs to display high task orientation and high relationship orientation.Follower: unable and unwillingLeader: needs to give clear and specific directions.

Path-Goal Guidelines to Be Effective

Determine the outcomes subordinates want. e.g., pay, security, interesting work, and autonomy, etc.Reward individuals with their desired outcomes when they perform well.Clarity of expectations.

Let individuals know what they need to do to receive rewards (the path to the goal) and Remove barriers that prevent high performance.Express confidence that individuals have the ability to perform well.

Directive Informs subordinates of expectations, gives guidanceSupportive Friendly and approachable, shows concern for status, well-being, and needs of subordinates.Participative Consults with subordinates, solicits suggestions, takes suggestions into consideration.Achievement oriented Sets challenging goals, expects subordinates to perform at highest level, continuously seeks improvement in performance, has confidence in highest motivations of employees.


Inspirational Leadership

• The focus is leader as communicator who inspires others to act beyond their immediate self-interests.

• Two contemporary leadership theories – Charismatic Leadership– Transformational Leadership


Charismatic Leadership

• Charisma – From the Greek for “gift”– A certain quality of an individual personality, by

virtue of which he or she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities.


Charismatic Leadership

Traits and personality are related to charismaPeople can be trained to exhibit charismatic behaviors


How Charismatic Leaders Influence Followers?

1. Leader articulates an attractive vision– Vision Statement: A formal, long-term strategy to attain

goals– Links past, present, and future

2. Leader communicates high performance expectations and confidence in follower ability

3. Leader conveys a new set of values by setting an example

4. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision


Charismatic Leadership Issues

• Importance of vision– Must be inspirational, value-centered, realizable, and given with

superior imagery and articulation• Charismatic effectiveness and situation

– Charisma works best when:• The follower’s task has an ideological component• There is a lot of stress and uncertainty in the environment• The leader is at the upper level of the organization• Followers have low self-esteem and self-worth

• Dark Side of Charisma– Ego-driven charismatic leaders allow their self-interest and personal

goals to override the organization’s goals


Level-5 Leaders

Effective leaders who possess the four typical leadership traits – Individual capability– Team skills– Managerial competence– Ability to stimulate others to high performance

Plus one critical new trait… – A blend of personal humility and professional will– Personal ego needs are focused toward building a great company– Take responsibility for failures and give credit to others for successes


Transactional & Transformational Leadership

• Transactional Leaders– Leaders who guide or motivate their followers in the direction of

established goals by clarifying role and task requirements

• Transformational Leaders– Inspire followers to transcend their own self-interests for the good of

the organization; they can have a profound and extraordinary effect on followers

• Not opposing, but complementary, approaches to leadership– Great transformational– Best leaders must also be transactional; only one type is not enough

for success


Characteristics of Transactional & Transformational Leaders


Self-Leadership

• Self-Leadership– A set of processes through which individuals control their

own behavior

• How do leaders create self-leaders?1. Model self-leadership2. Encourage employees to create self-set goals3. Encourage the use of self-rewards to strengthen and

increase desirable behaviours4. Create positive thought patterns5. Create a climate of self-leadership6. Encourage self-criticism


Team Leadership

• Leading teams requires new skills.– e.g., patience to share information, trust others,

give up authority, and knowing when to intervene

• Leading teams requires new roles.• Liaisons with external constituencies• Troubleshooters• Conflict managers• Coaches


Online Leadership

• Identification-Based Trust– based on a mutual understanding of each other’s intentions and

appreciation of each other’s wants and desires.

• Leadership at a Distance– Negotiations can be hindered because parties express lower levels of

trust– Good leadership skills – include ability to communicate support, trust,

and inspiration through electronic communication– Accurately read emotions in others’ messages– Writing skills are likely to become an extension of interpersonal skills


Benefits of Leading Without Authority

• Latitude for creative deviance– Easier to raise questions.

• Issue focus– Freedom to focus on single issue, rather than many

issues.

• Frontline information– Often closer to the people who have the information.


Contemporary Issues in Leadership

• Authentic Leadership

• Ethical Leadership

• Servant Leadership


Authentic Leadership

• Authentic Leaders– People who know who they are, know what they

believe in and value, and act on those values and beliefs openly and candidly (Primary quality: trust)

• Build trust by:– Sharing information– Encouraging open communication– Sticking to their ideals


Ethical Leadership

• Ethics and Leadership intersect– Transformational leadership has ethical implications –

change the way followers think– Charisma has ethical implications – unethical leaders use

their charisma to enhance power over followers, directed toward self-serving ends

– Ethical leadership reduces interpersonal conflict and increases organizational citizenship behaviours

– Need to set high ethical standards and model them


Ethical Leadership

• Socialized Charismatic Leadership– Leadership that conveys values that are other-

centered versus self-centered by leaders who model ethical conduct.

• Four cornerstones to a “moral foundation of leadership”:– Truth telling– Promise keeping– Fairness– Respect for the individual


Servant Leadership

• Servant leaders go beyond their self-interest and focus on opportunities to help followers grow and develop

• Don’t use power to achieve ends; emphasize persuasion

• Accept stewardship and actively develop followers’ potential

• Results in higher level of commitment to supervisor, self-efficacy, and perception of justice


Summary

1. Leaders provide vision and strategy; managers implement that vision and strategy.

2. Leaders need to have a vision, they need to communicate that vision, and they must have followers.

3. Leaders need to adjust their behaviours, depending on the situation and the needs of employees.


OB at Work: For Review

1. How are leadership and management different from one another?

2. What are the conclusions of trait theories of leadership?

3. What are the central tenets and main limitations of behavioural theories of leadership?

4. What is Fiedler’s contingency model?


OB at Work: For Review

5. How do charismatic and transformational leadership compare and contrast? Are they valid?

6. What leadership roles are available to non-managers?

7. What is authentic leadership? 8. What are the requirements of ethical

leadership?9. What is servant leadership? How does it

make a difference in organizations?


OB at Work: For Managers

■ For management positions, hire candidates who exhibit transformational leadership qualities and who have demonstrated vision and charisma.

■ Tests and interviews can help you identify people with leadership qualities.

■ Hire candidates whom you believe are ethical and trustworthy for management roles, and train current managers in your organization’s ethical standards in order to increase leadership effectiveness.


OB at Work: For Managers

■ Seek to develop trusting relationships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replacing bureaucratic rules in defining expectations and relationships.

■ Consider investing in leadership training such as formal courses, workshops, rotating job responsibilities, coaching, and mentoring.

Documents

Copyright © 2016 Pearson Canada Inc. CHAPTER 11 Leadership