Chapter

1. Chapter Twelve LEADERSHIP IN ORGANIZATIONS

2. After reading this chapter you should be able to: 1. Define leadership and explain how leading differs from managing. 2. Describe the trait approach to leadership, and identify what distinguishes successful leaders from ordinary people. 3. Describe various forms of participa-tive and autocratic leader behavior. 4. Distinguish the two basic forms of leader behavior: person-oriented behavior and production-oriented behavior -- and explain how grid training helps to develop both. 5. Explain what the leader-member exchange (LMX) model and the attributional approach to leadership in terms of the relationships between leaders and followers. . 6. Describe charismatic leadership and how it compares with transformational leadership. 7. Explain the contingency theories of leader effectiveness. 8. Summarize the LPC contingency theory and the situational leadership theory in terms of the connection between between leadership style and situational variables. 9. Explain path-goal theory and normative decision theory. 10. Describe the substitutes for leadership approach and what it says about the conditions when leaders are needed in the workplace.

3. noncoercive influence attains Goal Follower Figure 12.1 Leader The Nature of Leadership (Pp. 445-447) Leadership - process whereby one individual uses noncoercive techniques to influence other group members toward attaining defined group or organizational goals Leadership influence is goal directed - exercise influence for a purpose Leadership requires followers - leadership is a two-way street

4. Establish organizational mission Formulate strategy for implementing that mission Increase people’s commitment and effort toward the mission and strategy Implement organizational strategy through others Manager’s role Leader’s role The Nature of Leadership (cont.) Leaders Versus Managers Leaders - primary functionis to create the essential purpose or mission - cope with change Managers - primary function is to implement the leader’s vision - cope with complexity - create plans and monitor results Figure 12.2 Distinguishing Leader’s and Manager’s Roles

5. Trait Approach to Leadership (Pp. 447-449) Great Person Theory - leaders possess special traits which set them apart from others, and these traits are responsible for their positions of power and authority - leadership is based on characteristics that remain stable over time Characteristics of Great Leaders Leadership motivation - desire to influence others, especially toward attaining shared goals Personalized power motivation - wish to dominate others, reflected in an excessive concern with status Socialized power motivation - desire to cooperate with others, to work with them rather than dominate or control them Special abilities Cognitive ability - intelligence Flexibility - ability to recognize which actions are required and then to act accordingly

6. More Participative Autocratic Decision (Leader is not influenced by others Delegation (Leader permits others to make decisions Consultation Joint Decision Less Participative Leadership Behavior (Pp. 449-456) Participative and Autocratic Leadership Behaviors Autocratic-delegation continuum model - describes how leaders allocate influence to subordinates Figure 12.3

7. Leadership Behavior (cont.) Participative and Autocratic Leadership Behaviors (cont.) Two-dimensional model of subordinate participation - describes the nature of how leaders influence followers Autocratic-democratic dimension - characterizes the extent to which leaders permit subordinates to take part in decisions Permissive-directive dimension - characterizes the extent to which leaders direct the activities of subordinates and tell them how to perform their jobs - combining the two dimensions yields four possible patterns of leader behavior - no single pattern is best in all circumstances

8. Table 12.2 Two-Dimensional Model of Subordinate Participation Are subordinates permitted to participate in making decisions? Are subordinates told exactly how Yes No to do their jobs? (DEMOCRATIC) (AUTOCRATIC) Yes (directive) Directive democrat Directive autocrat (makes decisions (makes decisions participatively; closely unilaterally; closely supervises subordinates) supervises subordinates) No (permissive) Permissive democrat Permissive autocrat (makes decisions (makes decisions participatively; gives unilaterally; gives subordinates latitude in subordinates latitude in carrying out their work) carrying out their work)

9. Person-Oriented and Production-Oriented Leaders Initiating structure- activities by a leader to enhance productivity or task performance Consideration - actions by a leader that demonstrate concern with the welfare of subordinates and establish positive relations with them High Consideration Low High Initiating Structure Low Leadership Behavior (cont.) Low concern for production and High concern for people High concern for production and High concern for people Figure 12.5 Low concern for production and Low concern for people High concern for production and Low concern for people

10. Leadership Behavior (cont.) Grid Training - a multi-step process to develop concern for people and for production Grid seminar - used to determine an individual’s leadership style Organization-wide training to: - help people interact more effectively - identify extent to which organization is meeting its strategic goals Plans made to meet strategic goals Plans are implemented Progress toward meeting goals is assessed continuously

11. Figure 12.7 The Managerial Grid 1,9 pattern “Country club” environment 9,9 pattern Team management- the ideal style (high) 9 8 7 6 5 4 3 2 1 5,5 pattern Middle-of-the-road management Concern for People 9,1 pattern Task management 1,1 pattern impoverished management 1 2 3 4 5 6 7 8 9 (low) (high) Concern for Production

12. Figure 12.8 Leader Out-Group In-Group Raised Morale, Commitment, and Job Performance Lowered Morale, Commitment, and Job Performance Leaders and Followers (Pp. 456-459) Leader-Member Exchange Model (LMX) - leaders form different relations with various subordinates and the nature of such dyadic exchanges can affect subordinates’ performance and satisfaction In-group - favored group of subordinates - receive inflated performance ratings, have positive job attitudes, and less likely to resign from their jobs Out-group - subordinates disfavored by leaders

13. Figure 12.9 Improve follower’s skills internal causes (e.g., skills deficit) Poor performance by follower Attribution of performance by leader Upgrade work facilities Leaders and Followers (cont.) Attribution Approach - focuses on leaders’ attributions of follower’s performance -- i.e., on their perceptions of its underlying causes External causes (e.g., poor facilities)

14. Change-Oriented Leadership: Future Visions (Pp. 459-463) Charismatic Leadership - exert especially powerful effects on followers by virtue of their commanding confidence and clearly articulated visions Qualities of Charismatic leaders Self-confidence - sure of their ability and judgment A vision - proposes a state of affairs that improves the status quo Extraordinary behavior - are unconventional - quirky ways elicit admiration when successful Recognized as agents of change - threaten status quo Environmental sensitivity - highly realistic about constraints imposed on them and the resources required to change things Reactions to Charismatic Leaders Abnormally high performance levels Devoted, loyal, and reverent followers Enthusiasm for leader’s ideas Effects of Charismatic Leaders - are not necessarily virtuous people - maybe a liability under everyday conditions - engender polarized reactions, i.e., highly positive or highly negative

15. Change-Oriented Leadership: Future Visions (cont.) Transformational Leadership - leaders use their charisma to transform and revitalize their organizations Characteristics of Transformational Leaders Charisma - strong vision and sense of mission for the organization Intellectual stimulation - help followers to recognize problems and solutions Individualized consideration - give followers the support, attention, and encouragement needed to perform well Inspirational motivation - communicate the importance of the organization’s mission and rely on symbols to focus their efforts Effects of Transformational Leadership - elevate followers “to do their own thing” - charismatic leaders may keep followers weak and dependent - tend to be very effective in making their organizations successful - transformational leaders recognized as good performers and highly promotable

16. Contingency Theories of Leader Effectiveness (Pp. 463-476) Contingency Theories of Leadership - recognize that certain leadership styles are more effective in some situations than others LPC Contingency Theory - assumes that leader’s contribution to successful group performance is determined by her/his own traits and by the characteristics of the situation LPC - esteem (liking) for the least preferred coworker - is a stable (i.e., does not change) personality trait Low LPC leaders - primarily concerned with attaining successful task performance High LPC leaders - primarily concerned with establishing good relations with subordinates - situational characteristics that determine leader’s control Leader-member relations Task structure Position power Leader match - must match leaders to situations in which they can be effective

17. Figure 12.11 LPC Contingency Theory Low LPC leaders are highly effective under low situational control. Low LPC leaders are highly effective under low situational control. Low LPC leaders are highly effective under low situational control. Low LPC (concern for production) High LCP (concern for people) High Leader Effectiveness (as measured by group performance) Low Moderate High Situational Control

18. - four leadership styles - e.g., telling the most appropriate style when followers lack readiness (have little job knowledge or willingness to work without taking direction) High Participating Selling Figure 12.13 Relationship behavior (amount of support required) Telling Delegating Telling Low Low High Task behaviors (direct behavior) Contingency Theories of Leader Effectiveness (cont.) Situational Leadership Theory - the most effective leadership style depends on the extent to which followers require guidance, direction, and emotional support (i.e., the readiness of the followers to do the job)

19. Characteristics • of subordinates • Ability • Personality • Leader’s behavior • Instrumental • Supportive • Participative • Achievement oriented Progress toward goal • High performance • High satisfaction • Aspects of the • work environment • Task structure • formal authority Contingency Theories of Leader Effectiveness (cont.) Path-Goal Theory - subordinates are motivated by a leader only to the extent they perceive this individual as helping them to attain valued goals - effective leadership determined by complex interaction of leader behaviors, subordinate characteristics, and aspects of the work environment Figure 12.14

20. Contingency Theories of Leader Effectiveness (cont.) Normative Decision Theory - focuses primarily on strategies for choosing the most effective approach to decision making - best approach depends on Quality of the decision - extent to which it will affect important group processes Acceptance of the decision - degree of commitment among subordinates needed for its implementation - answering a set of diagnostic questions about the decision-making situations eventuates in recommending one or more decision- making strategies AI - leader makes decision unilaterally using available information AII - leader obtains necessary information and then makes the decision unilaterally CI - leader shares the problem with subordinates individually and then makes the decision unilaterally CII - leader shares the problem with the group but then makes the decision unilaterally GII - decision made after reaching consensus with subordinates

21. Is high-quality decision required? Is the problem structured? Do I have enough information to make such a decision? Is it crucial for implementation that subordinates accept the decision? Do subordinates disagree about appropriate method for attaining goals, so that conflict will result from the decision? If I make this decision alone, is it likely to be accepted by my subordinates? Do subordinates share the goals that will be reached through solution of this problem? Figure 12.15 A B C D E F G Yes AI, AII, CI CII, GII No GII AI, AII, CI, CII, GII AI, AII, CI, CII GII CII CI, CII AII, CI, CII AII, CI, CII, GII CII CI, GII CII CII

22. Contingency Theories of Leader Effectiveness (cont.) Substitutes for Leadership - high skill among subordinates or certain features of technology and organizational structure sometimes substitute for leadership, thus rendering a leader’s guidance or influence superfluous Neutralizers - factors that make it impossible for leaders to have an effect on subordinates Substitutes - factors that make a leader’s influence unnecessary Romanticizing Leadership - tendency to perceive management as more important and closely linked to performance than it actually is

23. Figure 12.16 Overestimating the Importance of Leadership Subjects assigned highest ratings to the company when its past success was attributed to its leadership (high) 8 7 Favorability of Ratings (high profitability, low risk) (Range = 0 - 10) 6 5 (low) Management Employees Market Government Supposed Source of Company’s Success Profitability Risk