Module Three: Leading andInfluencing
“To expect every manager to be a leader is futile. There are, in a developed society, thousands, if not millions, of managers – and leadership is always the rare exception and confined to a few individuals.”
Peter Drucker
“Business needs to relearn its limits” and business schools should revise their stated mission of educating leaders for the world at large. “Harvard Business School needs only to promise to educate students in the process and management of business.”
Philip Delves Broughton
Chapter 8: PowerPoint 8.2
What is Leadership
Leadership
Developing ideas and vision
Making hard decisions
about human and other resources
Living by values that
support those ideas
and that visionInfluencing others to
embrace them in their own behaviors
The Nature of Leadership
• Leadership– A social (interpersonal) influence between two
or more persons who depend on each other to attain certain mutual goals in a group situation.
The Nature of Leadership
• Leader versus manager– Leadership and management are not
interchangeable.– Leadership is the accepted use of
organizationally-derived and/or personal power to influence and motivate subordinates.
– Management is process-oriented (planning, organizing, directing, and controlling) supervisory behavior.
Leaders vs. Managers
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The LeadershipProcess
TheLeadership
Process
Consequences(e.g., Suspicion,
Trust, Dislike,Affection)
Context Followers
Leader
FIGURE 11FIGURE 11–1–1
The Leadership Process (cont’d)
• Leadership is a function of an interaction between the leader, the follower, and the situation.– L = ƒ [(Person)(Follower)(Situation)]
• Leader-member exchange (LMX) theoryA theory that describes the different kinds of relationships that may develop between a leader and a follower and what the leader and the follower give to and receive back from the relationship.
Leadership Process
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Leader-Member Exchange Model
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The Leader-Follower Power Relationship
Follower Compliance• Alienation & resistance• Calculative compliance• Identification• Internalization
Group Effectiveness• Follower satisfaction• Follower motivation• Follower performance
LeaderInfluence/Power Tactic(e.g., Use of Rationality)
—commitment
FIGURE 11FIGURE 11–2–2
Effective leadership is more likely to occur when the Effective leadership is more likely to occur when the leader’s influence flows out of expert and/or leader’s influence flows out of expert and/or referent power.referent power.
Early Approaches to Leadership• The trait approach
seeks to identify personal characteristics that effective leaders possess.
• The behavior approach focuses on the behaviors that effective leaders engage in.
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Chapter 8: PowerPoint 8.6
Traits Model of Leadership
Intelligence
Achievement drive
IntegrityMaturity
and breadth
Traits ofmost
successfulleaders
The Trait Approach to Leadership
• Great man theory of leadership– The belief that some people are born to be
leaders and others are not.• Leadership trait research
– Physiological, demographic, personality, intellective, task-related, and social characteristics of effective leaders.
– “The right stuff”?
Leadership Trait Research (cont’d)
• Core characteristics of leaders (Locke)– Drive—high level of effort and desire for achievement– Leadership motivation—intense desire to lead others– Honesty and integrity—commitment to the truth– Self-confidence—assurance in self, ideas, and ability– Cognitive ability—conceptually skilled and possessing
good judgment– Knowledge of business—high degree of
understanding about the company, industry, and technical matters
– Other traits—charisma, creativity/originality, and flexibility/adaptiveness
The Trait Approach to Leadership (cont’d)
• Other leader traits– Sex and gender role
• Males (or persons with masculine characteristics) emerge as leaders more frequently than females.
• Men are more likely to be task-oriented and to adopt autocratic/directive leadership styles.
• Women tend to be more interpersonal and relationship-oriented, and to
use a democratic/participative leadership style.
In fact, research shows:• Male and female leaders have similar task-
and people-oriented leadership.• Men do not engage in more initiating
structure and women do not engage in more consideration.
• Women do tend to have more democratic leadership styles, whereas men tend to be more autocratic.
• Women rated less favorably than equivalent male leaders due to stereotyping.
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Chapter 8: PowerPoint 8.7
Inadequacies of the Traits Model of Leadership
No consistent patterns between traits and leader effectiveness
Physical characteristics are more likely related to situational factors
Leadership is more complex than the trait approach assumes
Behavioral Leadership Styles
• Theory X and Theory Y leaders– Theory X leaders
• Assume workers dislike work and are incapable of self-direction and self-control.
• Use a highly controlling leadership style.– Theory Y leaders
• Assume workers enjoy work and are capable of self-direction and self-control.
• Use an involvement-oriented approach to leadership.
Leadership BehaviorsAutocratic-Delegation Continuum
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Tannenbaum and Schmidt’s Leadership Continuum
Managermakesdecision andannounces it.
Autocratic–leader isdominantin makingdecisions.
Free-Rein–followers arefree to choose,leader becomespassive.
Manager“sells”
decision.
Managerpresentsideas andinvitesquestions.
Managerpresentstentativedecisionsubject tochange.
Managerpresentsproblem, getssuggestions,makes decision.
Managerdefineslimits,asks groupto makedecision.
Managerpermitssubordinatesto functionwithin limitsdefined bysuperior.
Use of Authorityby the Manager Area of Freedom
for Subordinates
Boss-Centered Leadership
Participation
Subordinate-Centered Leadership
Low High
FIGURE 11FIGURE 11–3–3Source: Modified from R. Tannenbaum and W. H. Schmidt. May–June 1971. How to choose a leadership pattern. Harvard Business Review, 167.
Directive and Permissive Leadership Styles
• Leadership Behavior and the Uses of PowerLow
Low
HighHigh
Amount ofLeaderDirection
Amount of Employee Participation in Decision Making
Leader Decision-Making Power: HighLeader Directing Power: High
DirectiveAutocrat
1
Leader Decision-Making Power: LowLeader Directing Power: High
DirectiveDemocrat
3
Leader Decision-Making Power: HighLeader Directing Power: Low
PermissiveAutocrat
2
Leader Decision-Making Power: LowLeader Directing Power: Low
PermissiveDemocrat
4
FIGURE 11FIGURE 11–4–4Source: Modified from J. P. Muczyk and B. C. Reimann. 1987. The case for directive leadership. Academy of Management Executive, 1:304.
Chapter 8: PowerPoint 8.8
Behavioral Model of Leadership
Focuses on what leaders actually do and how they do it
ConsiderationExtent to which the leader has relationships with
subordinates that are characterized by mutual trust, two-way communication, respect for employees’ ideas, and empathy for their feelings
Initiating structure
Extent to which a leader defines and prescribes the roles of subordinates in order to set and accomplish goals in their areas of responsibility
Leadership Behavior Dimensions
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11–25
Behavioral Model of Leadership (cont’d)
• The University of Michigan studies identified the behavioral characteristics of effective leaders:– Job-centered behaviors— supervisory
activities such as planning, scheduling, and coordinating work activities.
– Employee member-centered behaviors—consideration and support for organizational members.
Chapter 8: PowerPoint 8.9
When Is Consideration Effective?
Followers desire participative leadership
Team members must learn
something new
Followers feel minimal status
differences should exist
between them and the leader
Involvement in decision making affects employees’
job performance
Routine tasks prevent job satisfaction
Chapter 8: PowerPoint 8.10
When Is Initiating Structure Effective?
Output pressure is imposed by someone other than the
leader
Employees rely on leader for direction and information
More than 12 employees report
to the leader
Employees are predisposed toward directive leadership
Task satisfies employees
The Managerial Grid
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Blake and
Mouton’s Managerial
Grid®
FIGURE 11FIGURE 11–5–5
1,9Accommodating(Yield and Comply)I support results that establish and reinforce harmony. I generate enthusiasm by focusing on positive and pleasing aspects of work.
9,9Sound(Contribute and Commit)I support team action in a way that invites involvement and commitment. I explore all facts and alternative views to reach a shared understanding of the best solution.
1,1Indifferent (Evade and Elude)I distance myself from taking active responsibility for results to avoid getting entangled in problems. If forced, I take a passive or supportive position.
5,5Status Quo (Balance and Compromise)I endorse results that are popular but caution against taking unnecessary risk. I test my opinions with others involved to assure ongoing acceptability.
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
Concern for Production
High
Low
Low High
Con
cern
for P
eopl
e
Source: Adapted from R. McKee and B. Carlson. 1999. The Power to Change, p.16. Copyright © 1999 by Grid International, Inc. Reproduced by permission of the owners.
9,1Controlling(Direct and Dominate)I expect results and take control by clearly stating a course of action. I enforce rules that sustain high results and do not permit deviation.
Fiedler’s Contingency (LPC) Theory
• The theory that leader effectiveness is determined by both the personal characteristics of leaders and by the situation in which leaders find themselves.
• Sheds light on two important issues:– Why, in a particular situation, some leaders will be
effective and other leaders with equally good credentials will be ineffective.
– Why a particular leader may be effective in one situation but not in another.
Fiedler’s Contingency (LPC) Theory
• According to Fiedler, a leader’s style is an enduring personal characteristic. Fiedler created the least preferred coworker (LPC) scale to measure it.
• Leaders who are relationship-oriented want to be liked by and to get along well with their subordinates.– Also called High LPC leaders because they tend to
describe their LPC in relatively positive terms.• Leaders who are task-oriented want their
subordinates to perform at a high level and accomplish all of their assigned tasks.– Also called Low LPC leaders because they tend to
describe their LPC in relatively negative terms.
Fiedler’s Contingency (LPC) Theory
• Contingency theory of leadership (cont’d)– Least preferred co-worker (LPC) score
• High LPC scores = relationship-oriented leaders.• Low LPC scores = task-oriented leaders.
– Situational favorableness• Favorable situations allow leaders more control/
influence over the group process.– Leader member relations, task structure, leader position
power
Fiedler’s Contingency (LPC) Theory
• According to Fiedler, three characteristics determine how favorable situations are for leading.
• Leader-Member Relations: The relationship between a leader and his or her followers.• Situation is favorable for leading when relations are
good.
Fiedler’s Contingency (LPC) Theory
• Task Structure: The extent to which the work to be performed by a group is clearly defined.• Situation is favorable for leading when structure is
high.• Position Power: The amount of formal
authority a leader has.• Situation is favorable for leading when power is high.
Fiedler’s Contingency Model of Leader-Situation Matches
Performance
Favorable
Good
PoorModerate Unfavorable
Good Good Good Good Poor Poor Poor Poor
High High Low Low High High Low Low
Strong Weak Strong Weak Strong Weak Strong Weak
Leader-MemberRelations
Task Structure
LeaderPosition Power
1 2 3 4 5 6 7 8
Task Motivated Relationship Motivated
FIGURE 11FIGURE 11–6–6Source: Adapted from F. E. Fiedler and M. M. Chemers. 1974. Leadership and effective management. Glenview, IL: Scott, Foresman.
LPC Contingency Theory
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Matching Style and Situation• High LPC leaders are most
effective in situations that are moderately favorable for leading.– Octants IV, V, VI, and VII
• Low LPC leaders are most effective in situations that are very favorable or very unfavorable for leading.– Octants I, II, III, and VIII
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Situational (Contingency) Approaches to Leadership
(cont’d)• Path-Goal theory
– Leadership is path- and goal-oriented.• Effective leaders provide organizational members
with a path to a valued goal.• Different leadership styles are effective as a
function of the task confronting the group.
Situational (Contingency) Approaches to Leadership
(cont’d)Path-Goal theory• Has roots in Expectancy Theory• Effective leaders influence employee satisfaction by
strengthening the performance to outcome expectancy and valences of those outcomes
• Effective leaders provide information and support to strengthen the effort to performance expectancy
• Generally applies to dyadic relations – later extended to apply to work units
Situational (Contingency) Approaches to Leadership
(cont’d)Path-Goal theory – 4 types of
behaviors• Directive behavior lets subordinates know what tasks
need to be performed and how they should be performed.
• Supportive behavior lets subordinates know that their leader cares about their well-being and is looking out for them.
Situational (Contingency) Approaches to Leadership
(cont’d)Path-Goal theory – 4 types of
behaviors• Participative behavior enables subordinates to be
involved in making decisions that affect them.• Achievement-oriented behavior pushes
subordinates to do their best. Includes setting difficult goals for followers, expecting high performance, and expressing confidence.
Situational (Contingency) Approaches to Leadership
(cont’d)Contingencies of path-goal theory:
Employee contingencies – skill and experiences and locus of control
Environmental contingencies – task structure and team dynamics
The Path-Goal Leadership Model
Subordinate OutcomesMotivationSatisfactionPerformance
Leader BehaviorSupportiveDirectiveParticipativeAchievement-Oriented
Situational ForcesWork EnvironmentSubordinate Characteristics
Combineto Influence
FIGURE 11FIGURE 11–7–7
Path Goal Theory
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Chapter 8: PowerPoint 8.11
Hersey Blanchard Model
Task behavior The extent to which a leader uses one way communication, spells
out duties, and tells followers where, when, and how to do it
Relationship behavior The extent to which a leader uses two-way communication,
listens, encourages, involves followers in decision making, and gives emotional support
Follower readiness Ability to set high but attainable task-related goals and a
willingness to accept responsibility for reaching them
The style of leadership should be matched to the level of readiness of the followers
Chapter 8: PowerPoint 8.12
Use of Styles in Situational Leadership Model
Delegating Style Telling Style
Participating Style Selling Style
Use when follower readiness is high
Use when follower readiness is low
Use when follower readiness is moderately high
Use when follower readiness is moderately low
Chapter 8: PowerPoint 8.13
The Situation Leadership® Model (Figure 8.2)(Part I)
FOLLOWER READINESS
High
R4
Able andwilling orconfident
ModerateR3
Able butunwilling or
insecure
R2
Unable butwilling orconfident
Low
R1
Unable andunwilling or
insecure
FollowerDirected
LeaderDirected
Source: P. Hersey, et al. Management of Organizational Behavior: Leading Human Resources, 8th ed. (Upper Saddle River, NJ: Prentice Hall, 2001), p. 182. Copyright © 2001, Center for Leadership Studies, Escondido, CA. Used with permission.
Chapter 8: PowerPoint 8.13
The Situation Leadership® Model (Figure 8.2)(Part II)
LEADERSHIP BEHAVIOR
S3 S2
Share ideasand facilitatein decisionmaking
Explain decisions and provide opportunity for clarification
Low RelLow Task
High TaskLow RelS4
Turn over responsibility for decisions and imple-mentation
S1Provide specific instructions and closely supervise performance
(low) (high)Task Behavior(Directive Behavior)
High RelLow Task
High TaskHigh Rel
Rel
atio
nshi
p B
ehav
ior
(Sup
porti
ve B
ehav
ior)
(low
)(h
igh)
®
Situational Leadership Theory
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Chapter 8: PowerPoint 8.14
Implications of Situational Leadership Model
Easily understood model with clear recommendations
Must constantly monitor employees’ readiness levels
Style should be changed to fit changing situations
Chapter 8: PowerPoint 8.15
Limitations of Situational Leadership Model
Difficulty in addressing different readiness levels in a team situation
Follower readiness is the only contingency variable used
Some leaders may not be able to easily adapt their styles to fit the situation
Not strongly supported by scientific research
Chapter 9: PowerPoint 9.1
Learning Objectives for Leading Effectively: Contemporary Developments
State the characteristics of transactionalleadership.
Describe the features of charismaticleadership.
Discuss the attributes of authenticleadership.
Explain the nature of transformationalleadership.
Chapter 9: PowerPoint 9.2
Transactional Leadership: Interrelated Components
Providescontingent
rewards
Emphasizes passive
managementby exception
Exhibitsactive management
by exception
Transactional Leadership
Chapter 9: PowerPoint 9.3
Practices of Effective Transactional Leaders
They ask: “What needs to be done?”
They ask: “What is right for the organization?
They develop action plans.
They take responsibility for decisions.
They take responsibility for communicating.
Chapter 9: PowerPoint 9.4
Charismatic
leadership
Reflects strengt
h
Extraordinary personal
qualities
Exhibitsdesiredbehavio
rs
Emphasizes shared vision and
valuesPromotes
sharedidentity
Model of Charismatic Leadership
Chapter 9: PowerPoint 9.5
Implications for Leaders
Gains power because their followers identify with them
Socialized charismatic leader—possesses an egalitarian and empowering personality
Rare in business
Communication competency is critical
Personalized charismatic leader—possesses a dominant Machiavellian, and self-centered personality
Chapter 9: PowerPoint 9.6
Authentic
Leadership
Raises optimis
m
Stimulatesfollower
identification
Showspositiveemotion
s
Creates
hope
Reflectstrust
Model of Authentic Leadership
Source: Based on Avolio, B.J., Gardner, W.L., Walumbwa, F.O., Luthans, F., and May, D.R. Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviors. Leadership Quarterly, 2004, 15, 801-823.
Chapter 9: PowerPoint 9.7
Implications for Leaders
Influence followers’ attitudes and behaviors through identification, hope, trust, positive emotions, and optimism.
Focus on being a “servant” to followers and other stakeholders
Knows oneself—strengths and limitations
Ethics and open communication are central
Chapter 9: PowerPoint 9.8
Model of Transformational Leadership
Transformational
leadership
Shows individualize
dconsideration
Providesinspirationalmotivation
Fostersidealizedinfluence
Createsintellectualstimulation
Chapter 9: PowerPoint 9.9
Displays great enthusiasm and optimism
Gets followers involved in and committed to a vision
Inspires others by what they say and do
Inspirational Motivation
Chapter 9: PowerPoint 9.10
Urges followers to question assumptions,explore new methods and ideas, and takenew approaches to old situations
Actively seeks out new ideas and creativesolutions from followers
Doesn’t criticize followers’ ideas just becausethey differ from those of the leader
Intellectual Stimulation
Chapter 9: PowerPoint 9.10
Relatively high tolerance for mistakes madeby conscientious followers
Focuses on the “what” in problems ratherthan the “who” to blame
Willing to abandon systems and practicesthat are no longer useful
Intellectual Stimulation(Continued)
Views risk taking as necessary and desirablefor long-term development and success
Chapter 9: PowerPoint 9.11
Idealized Influence
Often considers the needs and interests of their followers before their own
May willingly sacrifice personal gain
Can be trusted
Demonstrate high ethical and moral standards
Chapter 9: PowerPoint 9.11
Idealized Influence (Continued)
Can be very direct and challenging to some followers and empathetic and supportive of others
Minimizes the use of power for personal gain
Uses all power sources to move individuals and teams toward a vision and its goals
Chapter 9: PowerPoint 9.12
Individualized Consideration
May act as coach, mentor, teacher, facilitator, confidant,and counselor
Embraces and rewards individual differences to enhancecreativity and innovation
Encourages open dialogue with followers
Empowers followers to make decisions
Monitors followers to determine if they need additionalsupport or direction
Chapter 9: PowerPoint 9.13
Needed more than ever at all levels
Encourages reasonable risk taking
Knows when to reject traditional ways of doing things
Implications for Leaders
Vital to handling difficult and complex organizational threats, opportunities, and weaknesses
Substitutes and Neutralizers
• Leadership Substitute: Something that acts in place of a formal leader and makes leadership unnecessary (functional).– Intrinsic motivation of subordinates– Skill level of subordinates and nature of work
Substitutes and Neutralizers
• Leadership Neutralizer: Something that prevents a leader from having any influence and negates a leader’s efforts (dysfunctional).– Lack of ability to reward/punish– Physical distance between leader and
workers
Substitutes for Leadership Individual characteristics
Knowledge Commitment Experience
Job characteristics• Highly routine• Highly interesting
Organization characteristics• Work norms• Cohesion• Technology
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Substitutes for and Neutralizers of Leader Behavior
Leader Behavior Influenced
Substitute or Neutralizer Supportive Leadership
Instrumental Leadership
A. Subordinate Characteristics: 1. Experience, ability, training Substitute 2. “Professional” orientation Substitute Substitute 3. Indifference toward reward offered by
organization Neutralizer Neutralizer
B. Task Characteristics: 1. Structured, routine, unambiguous task Substitute 2. Feedback provided by task Substitute 3. Intrinsically satisfying task Substitute
Source: Leadership in organizations by G. A. Yuki. Copyright © 1981. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ 07458. TABLE 11TABLE 11–1a–1a
Substitutes for and Neutralizers of Leader Behavior (cont’d)
Leader Behavior Influenced
Substitute or Neutralizer Supportive Leadership
Instrumental Leadership
C. Organization Characteristics: 1. Cohesive work group Substitute Substitute 2. Low position power (leader lacks control
over organizational rewards) Neutralizer Neutralizer
3. Formalization (explicit plans, goals, areas of responsibility)
Substitute
4. Inflexibility (rigid, unyielding rules and procedures)
Neutralizer
5. Leader located apart from subordinates with only limited communication possible
Neutralizer Neutralizer
Source: Leadership in organizations by G. A. Yuki. Copyright © 1981. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ 07458. TABLE 11TABLE 11–1b–1b