TEIO13 Leadership and Organizational Change. LE 8 Leadership styles and behaviour. Nicolette Lakemond

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1 TEIO13 Leadership and Organizational Change LE 8 Leadership styles and behaviour Nicolette Lakemond Course examinor and course director Nicolette.Lakemond@liu.se 1 THE ORAL EXAM Go to classroom, bring ID Come in good time! 15 minutes Test with 10 MC Questions 30 minutes preparation 3 questions Of these three one main question 45 min To examiner In groups of three Answer on main question Complement on the other two Three new questions Answer on main question Complement on the other two 45 min-1hour approximately eedback and indication of grade 2 1

2 Criteria for grading U (ail) < ails to provide an accurate answer Provides an accurate answer on the question by describing and discussing the answer 3 Provides an accurate answer by describing and discussing the answer, and linking it to its appropriate context in a reflection Provides an accurate answer by describing and discussing the answer, linking it to its appropriate context in a reflection, showing clearly how different models/ theories are connected to each other, and by providing an accurate example Leadership at Scania The invited guests had the opportunity to listen to the President and CEO, Martin Lundstedt, and Scania Production System Manager Pia Nordström. He stressed that Scania s leadership philosophy is value-driven, and emphasised the importance of evaluating your own work. Good leadership is based on being able to explain motivate the decisions you make, says Lundstedt. Nordström explained how Scania has proceeded to change the leadership environment in the production process. The company has moved away from the one leader approach to a system of small work groups that places greater demands on close and committed leadership. The system was implemented to enhance the quality of the work process, and to create conditions for increased participation and motivation 4 among employees. 2

3 Scania s leadership and employeeship principles: Coordinate but work independently take responsibility Work with details and understand the context Act now think long-term Build know-how through continuous learning Stimulate commitment through involvement WHAT LEADERSHIP STYLES DO YOU RECOGNIZE AS CENTRAL TO SCANIA S LEADERSHIP? 5 rom rederick Taylor to??? The History of Management Theory Taylor Human- Closed Opened System Scientific Mgt Relations Technology Rational Differentiating Specialising Hierarchy (Skills - Traits) Behaviour Relationships Group norms ormal- Informal Motivation Situation Situational Decision processes Stakeholders 6 3

4 LEADER CHARACTERISTICS behaviors traits and skills sources of power SITUATIONAL CHARACTERISTICS task group organizational OLLOWER CHARACTERISTICS abilities and skills attitudes and values needs and motivations 7 SUPPORTIVE (stödjande) Shows consideration, acceptance, and concern for needs and feelings of followers DIRECTIVE (styrande) Assigns followers specific tasks, explains methods, clarifies expectations, sets goals, and specifies procedures Behaviour patterns of leaders PARTICIPATIVE (deltagande) Involves followers in making decisions by consulting to get ideas and suggestions REWARD & PUNISHMENT (belöning och straff) Provides intrinsic and extrinsic benefits, punishes for unwanted follower behaviours 8 CHARISMATIC (karismatisk) Displays high expectations, confidence and competence, communicates vision with idealogical goals which reflect followers needs 4

5 Leadership styles 54% uses one leadership style 25% uses two leadership styels 20% uses three leadership styles 1% uses four leadership styles 9 LEADER BEHAVIORS SITUATIONAL ACTORS THAT INCREASE LEADER EECTIVENESS Enhancers of Leader Behavior ollower characteristics & situational characteristics which increase leaders direct influence actors that Substitute for Leadership ollower characteristics & situational characteristics that replace the need for leadership by influencing psychological reactions and behavioral outcomes OLLOWER/GROUP PSYCHOLOGICAL REACTIONS Perceptions Attitudes eelings Motivations Expectations OLLOWER BEHAVIORAL OUTCOMES Performance Absenteeism Turnover 10 SITUATIONAL ACTORS THAT DECREASE LEADER EECTIVENESS Neutralizers of Leader Behavior ollower characteristics & situational characteristics which decrease leaders direct influence

6 Contingency models iedler s contingency model one of the first models 1967 least preferred coworker Normative decision model focus on decision styles Path-Goal theory clear the path the followers use to achieve the goals Leader- Member exchange LMX relationship between leader and follower 11 iedler LPC Perception of leaders least preferred co-worker provides insight into leaders priority toward accomplishing tasks or maintaining relationships LOW LPC leaders describe LPC as incompetent, cold, untrustworthy, cold, and quarrelsome HIGH LPC leaders describe LPC as relatively loyal, sincere, warm, and accepting TASK MOTIVATED RELATIONSHIP MOTIVATED 12 6

7 IEDLER LPC continued TASK MOTIVATED (LOW LPC) Draws self-esteem from completion of task ocuses on the task first Can be harsh with failing employees Considers competence of co-workers to be key trait Enjoys details RELATIONSHIP MOTIVATED (HIGH LPC) Draws self-esteem from interpersonal relationships ocuses on people first Likes to please others Considers loyalty of coworkers to be key trait Gets bored with details 13 iedler s Contingency Model G R O U P High Low LPC High LPC P E R O R M A N C Low E Leader Member Relations Task Structure Position Power LO W HIGH HIGH GOO D HIGH BAD LOW HIGH LOW LOW HIGH LOW HIGH LOW HIGH MODERATE LOW 14 SITUATIONAL CONTROL 7

8 IEDLER continued Leader style is constant leader s effectiveness changes with the situation Situational factors: leader-member relations, task structure, position power High control situation Moderate control situation Low control situation Task motivated (low LPC) Relationship motivated (high LPC) Confident; considerate and supportive; removes obstacles and stays out of the way Bored; aloof and selfcentered; somewhat autocratic; can interfere with group Tense; task-focused; overbearing and overly controlling; insists on getting things done Considerate; open to ideas and suggestions; concerned with resolving conflicts 15 Directive; task-focused,: serious; little concern for others Tense and nervous; hurt by group s conflict; indecisive Elements of the Normative Decision Model The leader s decision-making style: Autocratic Consultative Group/Delegation Contingency factors: Quality of the decision Acceptance of subordinates 16 8

9 Contingency actors in the Normative Decision Model Quality requirement (QR) How important is the quality of the decision? Commitment requirement (CR) How important is employee commitment? Leader information (LI) Does leader have enough information? Structure of the problem (ST) Is the problem clear? Commitment probability (CP) How likely is employee commitment if leader makes the decision alone? Goal congruence (GC) Do employees agree with organizational goals? Employee conflict (CO) Is there conflict among employees over solution? Subordinate information (SI) Do employees have enough information to make a high quality 17 decision? Autocratic style appropriate When the leader has sufficient information to make a decision When the quality of the decision is not essential When employees do not agree with each other When employees do not agree with the goals of the organizations Time efficient 18 9

10 Consultative style appropriate When the leader has sufficient information, but the employees demand participation to implement the decision When the leader has insufficient information, and employee consultation will help the leader gather more information as well as develop commitment When followers generally agree with the goals of the organization Time investment 19 Path Goal Theory Leader structuring and consideration Situational contingencies: Task structure Employee need for autonomy Leader s Actions: ocus on obstacle removal Become comfortable with both task and consideration behaviors Understand followers perception Effectiveness: Employee satisfaction and motivation 20 10

11 Implications of Path-Goal Theory Leaders must understand their followers perception of the task Leaders must take their followers need for challenge and autonomy into account When followers need challenge or the task is challenging, leaders must avoid being directive When the task is routine, boring, or stressful, leaders must be supportive to motivate their followers 21 Leader Member Exchange LMX Out group In Group Leader ollower 22 11

12 Stages of LMX Creation of Emotional Bond Development of Trust Testing and Assessment 23 Implications of LMX In order to use in-groups effectively, leaders should: Base in-group membership on current performance and/or future potential Periodically review criteria for in-group membership Assign tasks to those with best skills Set clear performance-related guidelines for in-group membership Keep membership fluid Maintain different in-groups for different 24 activities 12

13 Substitutes for leadership In some situations leadership is less important ollower charactistics 1. Experience and training 2. Professionalism 3. Lack of value for goals CONSIDERATION STRUCTURING Task characteristics 4. Unambiguous tasks 5. Direct feedback from tasks 6. Challeng task SUBSTITUTE OR NEUTRALIZER??? CONSIDERATION OR STRUCTURING??? Organizational characteristics 8. Cohesive team 9. Leader s lack of power 10. Standardization and formalization 11. Organizational rigidity 12. Physical distance between leaders and followers 25 Substitutes for leadership In some situations leadership is less important ollower charactistics 1. Experience and training 2. Professionalism 3. Lack of value for goals CONSIDERATION neutralizer STRUCTURING neutralizer Task characteristics 4. Unambiguous tasks 5. Direct feedback from tasks 6. Challeng task Organizational characteristics 8. Cohesive team 9. Leader s lack of power 10. Standardization and formalization 11. Organizational rigidity 12. Physical distance between leaders and followers neutralizer neutralizer neutralizer neutralizer neutralizer 26 13

14 Contemporary leadership models Inspiration, visions, focus on relationship leaderfollowers 27 Charismatic Leadership High self confidence Strong convictions about ideas High energy and enthusiasm Expressive Excellent communication Active image building ollowers High degree of respect and esteem for the leader Loyalty and devotion to the leader Affection for the leader High performance expectations Unquestioning obedience Leader Charismatic Leadership 28 Sense of crisis Perceived need for change Opportunity to articulate ideological goal Availability of dramatic symbols Opportunity to articulate followers role The situation Organizational life cycle (early and late) Complex task No external reward available lexible and organic structure Non bureaucratic cultures 14

15 actors in Transformational Leadership Intellectual Stimulation New ideas and empowerment Charisma and Inspiration Overcome resistance to change Individual Consideration Motivate and encourage Transformational Leadership 29 Transactional and Transformational Leadership Transactional ocus on day-today activities Exchange between leader and followers Transformational ocused on change Emotional bond between leader and followers 30 15

16 Transactional Leadership Contingent Reward Leader provides rewards in exchange for performance Can be very productive Management by Exception (MBE) Leader gets involved only to correct and provide negative feedback Generally not effective 31 Leadership at Scania The invited guests had the opportunity to listen to the President and CEO, Martin Lundstedt, and Scania Production System Manager Pia Nordström. He stressed that Scania s leadership philosophy is value-driven, and emphasised the importance of evaluating your own work. Good leadership is based on being able to explain motivate the decisions you make, says Lundstedt. Nordström explained how Scania has proceeded to change the leadership environment in the production process. The company has moved away from the one leader approach to a system of small work groups that places greater demands on close and committed leadership. The system was implemented to enhance the quality of the work process, and to create conditions for increased participation and motivation 32 among employees. 16

17 Scania s leadership and employeeship principles: Coordinate but work independently take responsibility Work with details and understand the context Act now think long-term Build know-how through continuous learning Stimulate commitment through involvement WHAT LEADERSHIP STYLES DO YOU RECOGNIZE AS CENTRAL TO SCANIA S LEADERSHIP? 33 Upcoming 34 17