Chapter 11

1. Chapter 11 Leadership II: Approaches and Issues

2. Learning Objectives • Compare and contrast the various approaches to, and theories of, leadership • Describe the similarities and differences between leadership and management • Differentiate between charismatic, transformational, and transactional leaders After studying this chapter, you should be able to:

3. Learning Objectives • Discuss E-leadership • Analyze the effects of culture on theories of leadership • Explain the ways in which an individual can improve her/his own leadership capabilities After studying this chapter, you should be able to:

4. Leadership Perspectives Blake and Mouton: Managerial Grid Perspective Leader Follower Situation XX Hersey and Blanchard: Situational Leadership Model X XX Fiedler: Contingency Leadership Model XX XX House: Path-Goal Theory XX XX XX Vroom/Yetton: Normative Decision Model XX X XX Substitutes for Leadership XX X = Strong Emphasis XX = Very Strong Emphasis Adapted from Exhibit 11.1: Leadership Perspectives: Relative Emphasis on Leader, Follower, and Situation

5. Leadership Grid • Both concern for people and concern for production are necessary for effective leadership • Best managers are high on both dimensions (9,9) • A 9,9 leader is best kind of leader, irrespective of who the followers are or what kinds of situations confront the leader

6. 9 High 8 7 6 5 4 3 2 Low 1 7 1 2 3 4 5 6 8 9 Low High Leadership Grid 1,9 9,9 Concern for People 5,5 1,1 9,1 Concern for Results Adapted from Exhibit 11.2: Blake and Mouton: The Leadership Grid

7. Situational Leadership Model • Successful leadership behaviors depend on the “readiness” of followers • Ability in relation to a specific task • Willingness to undertake the new task • Leadership behaviors • Supportiveness (people orientation) • Directiveness (task orientation) • Four combinations of the two dimensions of leadership behavior

8. High Low Low High Supportive leader behavior Directive leader behavior Situational Leadership Model Participating Delegating Follower Ability Telling Selling Follower Motivation Adapted from Exhibit 11.3: Hersey and Blanchard: Situational Leadership Model

9. Leadership Contingency Theory • Task-oriented leaders (low LPC score) and relationship-oriented leaders (high LPC score) must be matched to leadership situations • Favorableness of leadership situation • Relations with subordinates • Task structure • Position power

10. Leadership Contingency Theory SITUATION Favorable (for leader) Good subordinate relationships Highly structured task Leader with high amount of position power Unfavorable (for leader) Poor subordinate relationships Unstructured task Leader lacks position power LEADERS Low LPC Perspective Rates least preferred co-worker harshly Task oriented Most effective when situation is either highly favorable or highly unfavorable High LPC Perspective Rates least preferred co-worker favorably Person oriented Most effective when situation is neither highly favorable nor highly unfavorable Adapted from Exhibit 11.4: LPC Theory

11. Path-Goal Theory • Leader’s job is to increase subordinate satisfaction and effort • Increase personal payoffs to subordinates for work-goal attainment • Make the path to these payoffs easier to travel • Clarify it • Reduce roadblocks and pitfalls • Increase opportunities for personal satisfaction en route

12. Path-Goal Theory • Two basic leadership behaviors • Supportive leadership • Directive leadership • Assumes that a particular leadership approach will work better in some task situations than others • Assumes that leaders can modify their styles to suit the situation.

13. The task is: Frustrating, boring, stressful, structured, and routine Supportive Leadership Style (Person oriented) Subordinates are: Highly experienced and competent Goal (i.e., increased performance) The task is: Interesting but ambiguous, nonstressful, unstructured, varied Directive Leadership Style (Task oriented) Subordinates are: inexperienced Path-Goal Theory IF AND IF AND Adapted from Exhibit 11.5:

14. Normative Decision Model • Not a model of leadership behavior • Examines issue of how much subordinates should be allowed to participate in decision making • Also helps determine what type of participation should be allowed • Two key variables • Quality of the decision • Acceptance of the decision by subordinates

15. Normative Decision Model Decision Stylea Definition Leader makes the decision alone AI AII Leader asks for information from team members but makes the decision alone. Team members may or may not be informed what the situation is. CI Leader shares situation with each team member and asks for information and evaluation. Team members do not meet as a team, and the leader alone makes the decision. CII Leader and team members meet as a team to discuss the situation, but the leader makes the decision. G Leader and team members meet as a team to discuss the situation, and the team makes the decision. aA = autocratic C = consultative G = group Sources: V. H. Vroom and P. W. Yetton, Leadership and Decision-Making (Pittsburgh, PA: University of Pittsburgh Press, 1973); V. H. Vroom and A. G. Jago, The New Leadership: Managing Participation in Organizations (Englewood Cliffs, NJ: Prentice Hall, 1988). Adapted from Exhibit 11.6: Normative Decision-Making Model: Decision-Making Styles

16. Normative Decision Model State the Problem QR How important is the quality of this decisions? CR How important is subordinate commitment to the decision? LI Do you have sufficient information to make a high-quality decision? ST Is the problem well structured? CP If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to it? Adapted from Exhibit 11.7: Normative Decision-making Model for Leaders’ Use of Participation: Decision-Tree Questions

17. Normative Decision Model State the Problem GC Do subordinates share the organization goals to be attained in solving this problem? CO Is conflict among subordinates over preferred solutions likely? SI Do subordinates have sufficient information to make a high-quality decision? Adapted from Exhibit 11.7: Normative Decision-making Model for Leaders’ Use of Participation: Decision-Tree Questions

18. Normative Decision Model Decision-making Procedures AI Manager makes decision alone AII Manager gets information from team, makes decision alone CI Manager shares problem, gets information, makes decision alone CII Manager and subordinates meet to discuss situation, manager makes decision alone G Manager and leader meet to discuss situation, team makes decision Adapted from Exhibit 11.7: Normative Decision-making Model for Leaders’ Use of Participation: Decision-Tree Questions

19. Substitutes for Leadership • Alternative approaches • May partially substitute for leadership • Can sometimes overcome poor leadership • Aspects of organization or work situation • Can neutralize the best efforts of leaders • Inflexible organization procedures • Inadequate compensation policy

20. Ability, experience, training Intrinsically satisfying task Substitutes for Leadership Advisory or staff support Professional orientation Cohesive work group (with positive performance norms) Direct feedback from the task Substitutes for Leadership Substitutes for leadership Professional orientation Ability, experience, training Intrinsically satisfying task Advisory or staff support Cohesive work group (with positive performance norms Direct feedback from the task Adapted from Exhibit 11.8: Examples of Possible Substitutes for Leadership

21. Leading and Managing: The Same or Different • Leaders • Create vision for organizations and units • Promote major changes in goals and procedures • Set and communicate new directions • Inspire subordinates • Managers • Deal with interpersonal conflict • Plan • Organize • Implement goals set by others (the leaders)

22. Leading and Managing: The Same or Different • Managing ought to involve most of the activities thought of as leading • Organizations need their managers to also incorporate leadership roles into their behavior Leaders and Managers Leaders Managers Adapted from Exhibit 11.9: The Overlapping Roles of Leaders and Managers

23. Charismatic Leadership • Charismatic leadership • Charisma is a strong form of referent power • Influence is based on individual inspirational qualities rather than formal power • Followers or subordinates identify with charismatic leaders because of these exceptional qualities

24. Charismatic Leadership Attributes of Charismatic Leaders • Need for power • Impression management • Self-sacrifice toward organization • Innovative or unorthodox actions • Ideals, values, lofty goals • High expectations for followers • Models desired behaviors • Inspires followers • Strong belief in own ideas • High level of self-confidence Adapted from Exhibit 11.10: Attributes of the Charismatic Leader

25. Transformational Leadership • Transformational leaders • Leaders empower and coach followers • Followers identify with the leader • Motivate followers (to) • Ignore self-interest • Work for the larger good of the organization • Achieve significant accomplishments • Make major changes

26. Transactional Leadership • Transactional leadership • More passive • Emphasizes exchange or rewards or benefits for compliance with leader’s requests • Appeals to followers’ self-interests to motivate their performance

27. Transformation versus Transactional Leadership Leader gains subordinates’ compliance by: Transformational Leadership Transactional Leadership Inspiring, empowering, and coaching followers Exchange of rewards and benefits Appeals focus on: Organizational and “common good” interests Self-interest Type of planned change: Major organizational change Routine changes Adapted from Exhibit 11.11: Transformation versus Transactional Leadership

28. Guidelines for Transformational Leadership Those Who Want to Be Transformational Leaders Should: Develop a clear and appealing vision Develop a strategy for attaining the vision Articulate and promote the vision Act confident and optimistic Express confidence in followers Use early success in small steps to build confidence Celebrate successes Use dramatic, symbolic actions to emphasize key values Lead by example Source: Adapted from G. Yuki, Leadership in Organizations, 3rd ed. (Englewood Cliffs, NJ: Prentice Hall, 1994). Adapted from Exhibit 11.12: Guidelines for Transformational Leadership

29. E-age Leadership • Rely on use of information technology to supplement more traditional leadership methods • Maximize use of information technology to strengthen leadership efforts

30. Leadership Across Different National Cultures Examples of leader attributes viewed as positive or negative depending on the culture Examples of leader attributes universally viewed as positive Examples of leader attributes universally viewed as negative +/- +/- Ambitious +/- Individualistic +/- Cunning +/- Cautious +/- Class Conscious +/- Evasive + + Trustworthy + Encouraging + Honest + Decisive + Communicative + Dependable - - Noncooperative - Irritable - Dictatorial - Ruthless - Egocentric - Asocial Source: R. J. House, “Cultural Influences on Leadership and Organizations: Project GLOBE,” in W. Mobley (ed.), Advances in Global Leadership, vol. 1 (Stamford, CT: JAI Press, 1998). Adapted from Exhibit 11.13: The Effect of Culture on Attitudes toward Leaders’ Attributes

31. Self Followers Situation Improving Your Own Leadership Capabilities Set direction Set performance expectations Set an example Clarify and build paths Cheer on/ appreciate Strengths Weaknesses Skills Expectations Motivations Reassess and Change ASSESS ACT Constraints Opportunities Adapted from Exhibit 11.14: Improving Your Leadership Capabilities