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1. chapter 12 LEADERSHIP

2. 2 Leadership - Key Terms • Leadership: The exercise of influence by one member of a group or organization over other members to help the group or organization achieve its goals. • Leader: An individual who is able to influence group or organizational members to help the group or organization achieve its goals. • Leader Effectiveness: The extent to which a leader helps a group or organization to achieve its goals.

3. 3 Formal and Informal Leaders • Formal Leader: A member of an organization who is given authority to influence other organizational members to achieve organizational goals. • Informal Leader: An organizational member with no formal authority to influence others, but who has special skills or talents to influence others.

4. 4 Approaches to Understanding Effective Leadership • Trait Approach • Behavior Approach • Fiedler’s Contingency Model • Path-Goal Theory • Vroom and Yetton Model • Leader-Member Exchange Theory

5. 5 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.

6. 6 Leadership Traits • Intelligence helps a leader solve complex problems. • Task-relevant knowledge ensures that leader knows what has to be done, how • it should be done, what resources are required, and so on, for a group and • organization to achieve its goals. • Dominance, an individual’s need to exert influence and control over others, • helps a leader channel followers’ efforts and abilities toward achieving group • and organizational goals. • Self-confidence helps a leader influence followers and persist in the face of • obstacles or difficulties. • Energy/activity levels, when high, help a leader deal with the many demands • he or she faces on a day-to-day basis. • Tolerance for stress helps a leader deal with the uncertainty inherent in any • leadership role. • Integrity and honesty ensure that a leader behaves ethically and is worthy of • followers’ trust and confidence. • Emotional maturity ensures that a leader is not overly self-centered, can • control his or her feelings, and can accept criticism.

7. 7 Criticisms of the Trait Approach • 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.

8. 8 The Behavior Approach • Initiating Structure: Behavior that a leader engages in to make sure that work gets done and subordinates perform their jobs acceptably. • Also known as job-oriented behavior. • Consideration: Behavior indicating that a leader trusts, respects, and values good relationships with his or her followers. • Also known as employee-centered behavior.

9. 9 The Behavior Approach • Initiating Structure and Consideration are complementary and independent behaviors. • Why complementary? Because leaders can engage in both types of behaviors. • Why independent? Because knowing the extent to which a leader engages in consideration says nothing about the extent to which he or she engages in initiating structure and vice versa.

10. 10 Criticisms of the Behavior 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.

11. 11 Advice to Managers • Make sure you know and understand the work that your subordinates perform. Also make sure any subordinates who are leaders have the appropriate task-relevant knowledge. • Seek outside help, perhaps from an executive coach, if you are having trouble relating to your subordinates. Signs of trouble include frequent conflicts or disagreements or your subordinates avoiding you, withholding information from you, or acting fearful in your presence. • Vary your leadership behavior according to the situation, and instruct any subordinates who are leaders to do the same. Do not require them to always engage in certain leadership behaviors such as initiating structure or consideration. • Whenever possible, use reward behavior instead of punishing behavior, and instruct your subordinates who are leaders to do the same.

12. 12 Fiedler’s Contingency 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.

13. 13 Leader Styles • 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 LPCleaders 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.

14. 14 Situational Characteristics • 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. • 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.

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16. 16 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

17. 17 Advice to Managers • Do not expect leaders to change their leader style from task-oriented to relationship-oriented or vice versa. • Assign task-oriented leaders to very unfavorable or to very favorable situations. Assign relationship-oriented leaders to moderately favorable situations. • If you or one of your subordinates is a relationship-oriented leader in a very unfavorable situation, try to increase the favorability of the situation by improving leader-member relations, increasing task structure by clarifying goals or ways to achieve goals, or raising levels of position power.

18. 18 Path-Goal Theory A theory which describes how leaders can motivate their followers to achieve group and organizational goals and the kinds of behaviors leaders can engage in to motivate followers.

19. 19 Path-Goal Theory • Effective leaders motivate their followers to achieve group and organizational goals. • Effective leaders make sure that they have control over outcomes their subordinates desire. • Effective leaders reward subordinates for performing at a high level or achieving their work goals by giving them desired outcomes. • Effective leaders raise their subordinates’ beliefs about their ability to achieve their work goals and perform at a high level. • In determining how to treat their subordinates and what behaviors to engage in, effective leaders take into account their subordinates’ characteristics and the type of work they do.

20. 20 Path-Goal Theory: Guidelines Determine what outcomes subordinates are trying to obtain in the workplace and make sure that you have control over them. Reward subordinates for performing at a high level or achieving their work goals by giving them desired outcomes. Make sure subordinates believe that they can obtain their work goals and perform at a high level.

21. 21 Path-Goal Theory:Four Types of Behavior • 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. • 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.

22. 22 Vroom and Yetton Model • A model that describes the different ways in which leaders can make decisions and guides leaders in determining the extent to which subordinates should participate in decision making. • The model first requires leaders to determine whether an individual or a group decision needs to be made. • Individual decisions pertain to a single subordinate. • Group decisions pertain to a group of subordinates.

23. 23 Decision-Making Styles • Autocratic (A) - The leader makes the decision without input from subordinates. • Consultative (C) - Subordinates have some input, but the leader makes the decision. • Group (G)- The group makes the decision; the leader is just another group member. • Delegated (D)- The leader gives exclusive responsibility to subordinates.

24. 24 Questions Leaders Must Ask • Is there a quality requirement such that one solution is likely to be more rational than another? • Do I have sufficient information to make a high-quality decision? • Is the problem structured? • Is acceptance of decision by subordinates critical to effective implementation? • If I were to make the decision by myself, is it reasonably certain that it would be accepted by my subordinates? • Do subordinates share the organizational goals to be attained in solving this problem? • Is conflict among subordinates likely in preferred solutions? • Do subordinates have sufficient information to make a high-quality decision?

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26. 27 Group Problems and Decisions AI. AII. CI. CII. GII. Leader solves the problem or makes the decision using information available at the time. No outside input. The leader obtains the necessary information from subordinates. The leader makes the decision. The leader shares the problem with the relevant subordinates individually and gets their ideas and suggestions without bringing them together as a group. The leader makes the decision. The leader shares the problem with subordinates as a group, obtaining their ideas and suggestions. The leader makes the decision. The leader shares the problem with subordinates as a group, does not try to influence the group, and is willing to accept and implement any solution that has the support of the entire group. Least Participative Most Participative

27. 28 Individual Problems and Decisions AI. AII. CI. CII. GII. The leader solves the problem or makes the decision using information available at the time. No outside input. The leader obtains the necessary information from the subordinate involved in the decision. The leader makes the decision. The leader shares the problem with the subordinate and asks for ideas and suggestions. The leader makes the decision. The leader shares the problem with the subordinate, and together they analyze the problem and arrive at a mutually agreeable solution. The leader delegates the problem to the subordinate, provides any relevant information, but gives the subordinate responsibility for solving the problem. Least Participative Most Participative

28. 29 Leader-Member Exchange Theory • A 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. • Leader-follower Dyad: The relationship between a leader and a follower. • In-group: A leader-follower dyad characterized by mutual trust, commitment, and involvement. • Out-group: A leader-follower dyad in which the leader relies on his or her formal authority to influence the subordinate and the subordinate is expected to perform his or her job in an acceptable manner.

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30. 31 Advice to Managers • Determine what outcomes your followers are trying to obtain from their jobs, and make sure that you have as much control as possible over those outcomes. • Distribute desired outcomes to your subordinates when they attain their work goals and perform at a high level. • Raise your followers’ expectations by clarifying how they can attain their work goals, removing obstacles that hamper goal attainment and high performance, and expressing confidence in their ability to succeed. • Tailor your leadership behaviors to the characteristics of your subordinates and to the situation.

31. 32 Advice to Managers • When determining how much to allow your subordinates to participate in decision making, consider the decision to be made, the subordinates involved, and the information you need to make a good decision. • Realize that participation in decision making can contribute to your subordinates’ growth and development on the job but can also be time-consuming. • Develop high-quality relationships with as many of your subordinates as possible - that is, have a big in-group and a small out-group.

32. 33 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 • 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

33. 34 New Topics inLeadership Research • Transformational and Charismatic Leadership • Transactional Leadership • Leader Mood • Gender and Leadership

34. 35 Transactional vs. Transformational Leadership • Transactional: Leadership that motivates followers by exchanging rewards for high performance and noticing and reprimanding subordinates for mistakes and substandard performance. • Transformational: Leadership that inspires followers to trust the leader, perform behaviors that contribute to the achievement of organizational goals, and perform at a high level.

35. 36 Transformational Leadership • Charisma: Self-confidence and enthusiasm, which wins followers’ respect and support for his or her vision of how good things could be. • Intellectual Stimulation: Helping followers become aware of problems in the group or organization, often from a new perspective. • Developmental Consideration: Providing support and encouragement to followers and giving them opportunities to develop and grow on the job.

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37. 38 Gender and Leadership • When men and women have leadership positions in organizations, they tend to behave in a similar manner. 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.

38. 39 Advice to Managers • Let your subordinates know how important the work they do is for their work groups and for the organization as a whole. • Convey to your subordinates that it is important for them to grow and develop on the job and to feel that they are accomplishing something. • Show your subordinates that you are concerned about them, and give them the opportunity to learn new things and acquire new skills. • Have your own vision of how good things could be in the groups you manage and in your whole organization, and convey your vision to your subordinates. • Be enthusiastic and excited about your vision. • Discuss with your subordinates problems you are facing, and show them how these problems can be solved if everyone works to achieve your vision. • Use managers who are especially good at involving subordinates in decision making to help other managers who have trouble being participative improve their interpersonal skills.