Chapter 8

1. Chapter 8 Leadership

2. Leadership Questions for Consideration Questions for Consideration 1. What is the difference between a manager and a leader? 2. Are there specific traits, behaviours, and situations that affect how one leads? 3. How does a leader lead with vision? 4. Can a person be an informal leader? 5. What is self-leadership? 6. What are some of the hot topics in leadership?

3. Managership Engages in day-to-day caretaker activities: Maintains and allocates resources Exhibits supervisory behaviour: Acts to make others maintain standard job behaviour Administers subsystems within organizations Asks how and when to engage in standard practice Acts within established culture of the organization Uses transactional influence: Induces compliance in manifest behaviour using rewards, sanctions, and formal authority Relies on control strategies to get things done by subordinates Status Quo supporter and stabilizer Leadership Formulates long-term objectives for reforming the system: Plans strategy and tactics Exhibits leading behaviour: Acts to bring about change in others congruent with long-term objectives Innovates for the entire organization Asks what and why to change standard practice Creates vision and meaning for the organization Uses tranformational influence: Induces change in values, attitudes, and behaviour using personal examples and expertise Uses empowering strategies to make followers internalize values Status Quo challenger and change creator Exhibit 8-1 Distinguishing Leadership From Managership

4. Leadership as Supervision • Three general questions • Are there a particular set of traits that all leaders have, making them different from nonleaders? • Are there particular behaviours that make for better leaders? • How much impact does the situation have on leaders?

5. Trait Theories • Trait: characteristics of the person • Physical Characteristics • Abilities • Personality Traits • Traits consistently associated with leadership • Ambition and energy • The desire to lead • Honesty and integrity • Self-confidence • Intelligence • Job-relevant knowledge

6. Exhibit 8-2 What CEOs Identify as Leadership Traits • Communication skills • Ability to motivate people • Honesty • Ability to listen • Team-building expertise • Analytical skills • Aggressiveness in business

7. Emotional Intelligence and Leadership • EI is the best predictor of who will emerge as a leader. • IQ and technical skills are "threshold capabilities." • They're necessary but not sufficient requirements for leadership. • Leaders need: self-awareness, self-management, self-motivation, empathy, and social skills to become a star performer. • These are the components of EI.

8. Behavioural Theories of Leadership • Propose that specific behaviours differentiate leaders from nonleaders • Initiating Structure • (e.g., task-orientation, work-orientation, production-orientation) • Consideration • (employee needs and concerns) • Examples • Ohio Studies, Michigan Studies, Managerial Grid

9. Exhibit 8-3 The Managerial Grid High 9 1,9 9,9 Country club management Team management Thoughtful attention to needs Work accomplishment is from 8 of people for satisfying relation- committed people who have a ships leads to a comfortable, "common stake" in organization's friendly organization atmos- purpose.This leads to relationships 7 phere and work tempo. of trust and respect. 6 5 5,5 Middle-of-the-road management 4 Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale 3 of people at a satisfactory level. 1,1 9,1 Impoverished management Authority-obedience Exertion of minimum effort Efficiency in operations results to get required work done is from arranging conditions of 2 appropriate to sustain work in such a way that human organization membership. elements interfere to a minimum degree. 1 Low 1 2 3 4 5 6 7 8 9 High Low Concern for production

10. Contingency, or Situational Leadership Theories • 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

11. 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 • productivity, and thus task oriented

12. 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.

13. Exhibit 8-4 Hersey-Blanchard’s Situational Leadership Styles Leader Behaviours (High) Participating Selling S3 S2 Delegating Telling S4 S1 (Low) Task behaviour (High) Follower Readiness R4 R3 R2 R1 Able and Unable and Unable and Able and Unable and Unable and unwilling/ unwilling/ unwilling/ willing willing willing apprehensive insecure insecure High Moderate Low

14. Hersey and Blanchard’s Situational Theory • Follower: unable and unwilling • Leader needs to give clear and specific directions (in other words, be highly directive) • Follower: unable but willing • Leader needs to display high task orientation to compensate for the follower’s lack of ability, and high relationship orientation to get the follower to "buy into" the leader's desires (in other words, “sell” the task)

15. Hersey and Blanchard’s Situational Theory • Follower: able but unwilling • Leader needs to use a supportive and participative style • Follower: both able and willing • Leader doesn't need to do much (in other words, a laissez-faire approach will work)

16. Path-Goal Guidelines to Be Effective Leader • Determine the outcomes subordinates want • e.g., good pay, job security, interesting work, and autonomy to do one’s job, etc. • Reward individuals with their desired outcomes when they perform well • Be clear with expectations • Let individuals know what they need to do to receive rewards (the path to the goal) • Remove barriers that prevent high performance • Express confidence that individuals have the ability to perform well

17. Path-Goal Leadership Styles • Directive • Informs subordinates of expectations, gives guidance, shows how to do tasks • Supportive • Friendly and approachable, shows concern for status, well-being and needs of subordinates

18. Path-Goal Leadership Styles • 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

19. CONTINGENCY FACTORS Environmental • Task structure • Formal authority system • Work group Outcomes Leader Behaviour • Performance • Directive • Satisfaction • Achievement-oriented • Participative • Supportive Subordinate • Locus of control • Experience • Perceived ability Exhibit 8-5 Path-Goal Theory

20. Relationship- Oriented Leadership Task- Oriented Leadership Defining Characteristics Individual Experience/training Professionalism Indifference to rewards Job Highly structured task Provides its own feedback Intrinsically satisfying Organization Explicit formalized goals Rigid rules and procedures Cohesive work groups No effect on Substitutes for Neutralizes No effect on No effect on Substitutes for No effect on No effect on Substitutes for Substitutes for Substitutes for Neutralizes Substitutes for Substitutes for No effect on Substitutes for Substitutes for Substitutes for Exhibit 8-6 Substitutes and Neutralizers for Leadership

21. Can You Be a Better Follower? • All organizations have far more followers than leaders, so ineffective followers may be more of a handicap to an organization than ineffective leaders. • What qualities do effective followers have? • They manage themselves well • They are committed to a purpose outside themselves • They build their competence and focus their efforts for maximum impact • They are courageous, honest, and credible

22. Exhibit 8-8 Characteristics of Transactional Leaders • Contingent Reward • Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments. • Management by Exception (active) • Watches and searches for deviations from rules and standards, takes corrective action. • Management by Exception (passive): • Intervenes only if standards are not met. • Laissez-Faire Leader: • Abdicates responsibilities, avoids making decisions.

23. Exhibit 8-8 Characteristics of Transformational Leaders • Charisma • Provides vision and sense of mission, instills pride, gains respect and trust. • Inspiration • Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways. • Intellectual Stimulation • Promotes intelligence, rationality, and careful problem-solving. • Individualized Consideration • Gives personal attention, treats each employee individually, coaches, advises.

24. Personal Characteristics of the Charismatic Leaders • Vision and articulation. • Has a vision--expressed as an idealized goal--that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others. • Personal risk. • Willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve the vision.

25. Personal Characteristics of the Charismatic Leaders • Environmental sensitivity. • Able to make realistic assessments of the environmental constraints and resources needed to bring about change. • Sensitivity to follower needs. • Perceptive of others' abilities and responsive to their needs and feelings. • Unconventional behaviour. • Engages in behaviours that are perceived as novel and counter to norms.

26. Research Evidence on Charismatic Leadership • Superiority of transformational leadership is impressive • Transformational military officers more effective than transactional officers • Transformational FedEx managers were evaluated as higher performers and more promotable • Transformational managers at financial services companies had higher business unit performance

27. Dispersed Leadership • SuperLeadership • Team leadership • Leading through empowerment • Putting employees in charge of what they do

28. SuperLeadership • Leading others to lead themselves • Develop leadership capacity in others • Nurture employees so they feel less dependent on formal leadership • Emphasize delegation • Empower employees • Empowerment: giving employees responsibility for what they do

29. Providing 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

30. Team Leaders • Team leaders need to focus on two priorities • Managing the team’s external boundary • Facilitating the team process. • Four specific roles • Liaisons with external constituencies. • Troubleshooters • Conflict managers • Coaches

31. Exhibit 8-9Self-Leadership Practices • Planning • I plan out my day before beginning to work • I try to schedule my work in advance • I plan my career carefully • I come to work early to plan my day • I use lists and agendas to structure my workday • I set specific job goals on a regular basis • I set daily goals for myself • I try to manage my time • Access management • I control the access subordinates have to me in order to get my work done • I use a special place at work where I can work uninterrupted • I hold my telephone calls when I need to get things done

32. Exhibit 8-9Self-Leadership Practices • Catch-up activities • I come in early or stay late at work to prevent distractions from interfering with my work • I take my work home with me to make sure it get done • I come in on my days off to catch up on my work • Emotions management • I have learned to manage my aggressiveness with my subordinates • My facial expression and conversational tone are important in dealing with subordinates • It is important for me to maintain a “professional” manager-subordinate relationship • I try to keep my emotions under control

33. 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

34. Contemporary Issues in Leadership • Is there a Moral Dimension to Leadership? • Gender: Do Males and Females Lead Differently? • Cross-Cultural Leadership

35. The Moral Foundation of Leadership • Truth telling • Telling the truth as you see it, because it allows for a mutual, fair exchange to occur. • Promise keeping • Leaders need to be careful of the commitments they make, and then careful of keeping those promises. • Fairness • This ensures that followers get their fair share for their contributions to the organization. • Respect for the individual • Telling the truth, keeping promises, and being fair all show respect for the individual. Respect means treating people with dignity.

36. Men’s and Women’s Leadership Styles • In general, women fall back on a democratic leadership style • Encourage participation • Share power and information • Attempt to enhance followers’ self-worth • Prefer to lead through inclusion • Men feel more comfortable with a directive command-and-control style • Rely on formal authority

37. Cross-Cultural Leadership • Leaders are constrained by the culture in which they live and by the expectations of their subordinates. • For example, participation as a leadership style is likely to be more effective in counties with low power distance and some level of collectivism value. • Remember, most of these leadership theories and empirical studies have been developed and conducted in North America.

38. Summary and Implications • Leadership plays a central part in understanding group behaviour • The study of leadership has expanded to include more heroic and visionary approaches to leadership • Male and female leadership styles tend to be more alike than different, although there are differences • Leadership is not value free

39. Summary and Implications • Effective team leaders perform four roles: • They act as liaisons • They are troubleshooters • They manage conflict • They coach team members • Empowered leadership is not the preferred leadership style of all occasions • National culture is an important variable in choosing a leadership style

40. OB at Work

41. For Review 1. Trace the development of leadership research. 2. Describe the strengths and weaknesses in the trait approach to leadership. 3. What is the Leadership Grid? 4. When might leaders be irrelevant? 5. What characteristics define an effective follower? 6. Describe the strengths and weaknesses of a charismatic leader.

42. For Review 7. What are the differences among transactional and transformational leaders? 8. What is dispersed leadership? What are some examples of dispersed leadership? 9. Why do you think effective female and male managers often exhibit similar traits and behaviours? 10. What is moral leadership?

43. For Critical Thinking 1. Develop an example where you apply path-goal theory. 2. Reconcile path-goal theory and substitutes for leadership. 3. What kind of activities could a full-time college or university student pursue that might lead to the perception that he or she is a charismatic leader? In pursuing those activities, what might the student do to enhance this perception of being charismatic? 4. Based on the low representation of women in upper management, to what extent do you think that organizations should actively promote women into the senior ranks of management?

44. Breakout Group Exercises • Form small groups to discuss the following: 1. Identify an example of someone you thought was a good leader. What traits did they have? How did these traits differ from someone you identify as a bad leader? 2. Identify a situation when you were in a leadership position (in a group, in the workplace, within your family, etc.) To what extent were you able to use a contingency approach to leadership? What made that easier or more difficult for you? 3. When you’ve worked in student groups, how frequently have leaders emerged in the group? What difficulties occur when leaders are leading peers? Are there ways to overcome these difficulties?

45. Concepts to Skills: Practising to Be Charismatic • Project a powerful, confident, and dynamic presence • Articulate an overarching goal • Communicate high-performance expectations and confidence in others’ ability to meet these expectations • Be sensitive to the needs of followers