Leadership. Comportamiento organizacional. M. En C. Eduardo Bustos Farías 1
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1 Leadership M. En C. Eduardo Bustos Farías 1
2 Outline Trait and Behavioral Theories of Leadership Trait Theory Behavioral Styles Theory Situational Theories Fiedler s Contingency Model Path-Goal Theory Hersey and Blanchard s Situational Leadership Theory M. En C. Eduardo Bustos Farías 2
3 Outline (continued) From Transactional to Charismatic Leadership How Does Charismatic Leadership Transform Followers? Research and Managerial Implications Additional Perspectives on Leadership The Leader-Member Exchange (LMX) Model of Leadership Substitutes for Leadership Servant-Leadership Superleadership M. En C. Eduardo Bustos Farías 3
4 Leadership Leadership influencing employees to voluntarily pursue organizational goals Management use of authority inherent in designated formal rank to obtain compliance from organizational members. M. En C. Eduardo Bustos Farías 4
5 Trait Theory Leadership Traits Leadership Traits: represent the personal characteristics that differentiate leaders from followers. Historic findings reveal that leaders and followers vary by - intelligence - dominance - self-confidence - level of energy and activity - task-relevant knowledge Contemporary findings show that - people tend to perceive that someone is a leader when he or she exhibits traits associated with intelligence, masculinity, and dominance - people want their leaders to be credible - credible leaders are honest, forward-looking, inspiring, and competent M. En C. Eduardo Bustos Farías 5
6 Trait Theory (continued) Gender and leadership - men and women were seen as displaying more task and social leadership, respectively - women used a more democratic or participative style than men, and men used a more autocratic and directive style than women - men and women were equally assertive - women executives, when rated by their peers, managers and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria M. En C. Eduardo Bustos Farías 6
7 Trait Theories Traits Theories of Leadership Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders. Leadership Traits: Ambition and and energy The The desire to to lead lead Honest and and integrity Self-confidence Intelligence High self-monitoring Job-relevant knowledge M. En C. Eduardo Bustos Farías 7
8 Trait Theories Limitations: No No universal traits found that that predict leadership in in all all situations. Traits predict behavior better in in weak than than strong situations. Unclear evidence of of the the cause and and effect of of relationship of of leadership and and traits. Better predictor of of the the appearance of of leadership than than distinguishing effective and and ineffective leaders. M. En C. Eduardo Bustos Farías 8
9 Behavioral Theories Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from nonleaders. Trait Trait theory: Leaders are are born, not not made. Behavioral theory: Leadership traits can can be be taught. M. En C. Eduardo Bustos Farías 9
10 Behavioral Styles Theory Ohio State Studies identified two critical dimensions of leader behavior. 1. Consideration: creating mutual respect and trust with followers 2. Initiating Structure: organizing and defining what group members should be doing University of Michigan Studies identified two leadership styles that were similar to the Ohio State studies - one style was employee centered and the other was job centered Blake and Mouton s s Managerial Grid represents four leadership styles found by crossing concern for production and concern for people Research shows that there is not one best style of leadership. The effectiveness of a particular leadership style depends on the situation at hand. M. En C. Eduardo Bustos Farías 10
11 Ohio State Studies Initiating Structure The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment. Consideration The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate s ideas, and regard for their feelings. M. En C. Eduardo Bustos Farías 11
12 Four Leadership Styles Derived from the Ohio State Studies Consideration High Low Low Structure, High Consideration Less emphasis is placed on structuring employees tasks while the leader concentrates on satisfying employee needs and wants Low Structure, Low Consideration The leader fails to provide necessary structure and demonstrates little consideration for employee needs and wants Low Initiating Structure High Structure, High Consideration The leader provides a lot of guidance about how tasks can be completed while being highly considerate of employee needs and wants High Structure, Low Consideration Primarily emphasis is placed on structuring employee tasks while the leader demonstrates little consideration for employee needs and wants High M. En C. Eduardo Bustos Farías 12
13 Skills and Best Practices: Tips for Improving Leader Effectiveness Behavior Recommended Behaviors Listen Examine Assist Develop Encourage Recognize Intensely listen to what others have to say. Determine the true cause of performance problems. Think through problems from all perspectives. Do not play favorites and find solutions that benefit everyone involved. Help others to learn from mistakes and errors. Explain the rationale for decisions and implement fair policies and procedures. Provide employees with the resources needed to do a job. Gently push people to advance into more demanding roles. Praise people for their good work. Focus on the positive whenever possible. Source: CEO s Need to Listen, Examine, Assist, The Arizona Republic, April 22, 2001, p D2. M. En C. Eduardo Bustos Farías 13
14 University of Michigan Studies Employee-Oriented Leader Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members. Production-Oriented Leader One who emphasizes technical or task aspects of the job. M. En C. Eduardo Bustos Farías 14
15 Scandinavian Studies Development-Oriented Leader One who values experimentation, seeking new ideas, and generating and implementing change. Researchers in Finland and Sweden question whether there are only two dimensions (production-orientation and employeeorientation) that capture the essence of leadership behavior. Their premise is that in a changing world, effective leaders would exhibit development-oriented behavior. M. En C. Eduardo Bustos Farías 15
16 Contingency Theories Fiedler s Contingency Model The theory that effective groups depend on a proper match between a leader s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. Least Preferred Co-Worker (LPC) Questionnaire An instrument that purports to measure whether a person is task- or relationship-oriented. M. En C. Eduardo Bustos Farías 16
17 Fiedler s Model: Defining the Situation Leader-Member Relations The degree of confidence, trust, and respect subordinates have in their leader. Task Structure The degree to which the job assignments are procedurized. Position Power Influence derived from one s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases. M. En C. Eduardo Bustos Farías 17
18 Representation of Fiedler s s Contingency Model Situational Control High Control Situations Moderate Control Situations Low Control Situations Leader-member relations Good Good Good Good Poor Poor Poor Poor Task Structure High High High Low High High Low Low Position Power Strong Weak Strong Weak Strong Strong Strong Weak Situation I II III IV V VI VII VIII Optimal Leadership Style Task Motivated Relationship Task Motivated Leadership Motivated Leadership Leadership M. En C. Eduardo Bustos Farías 18
19 Cognitive Resource Theory Cognitive Resource Theory A theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on the leader. Research Support: Support: Less Less intelligent intelligent individuals individuals perform perform better better in in leadership leadership roles roles under under high high stress stress than than do do more more intelligent intelligent individuals. Less Less experienced people people perform perform better better in in leadership leadership roles roles under under low low stress stress than than do do more more experienced people. people. M. En C. Eduardo Bustos Farías 19
20 Path-Goal Theory Path-Goal Theory The theory that it is the leader s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization. M. En C. Eduardo Bustos Farías 20
21 House s Path-Goal Theory Employee Characteristics - Locus of control - Task ability - Need for achievement -Experience - Need for clarity Leadership Styles -Directive -Supportive - Participative - Achievement oriented Employee Attitudes and Behavior - Job satisfaction - Acceptance of leader -Motivation Environmental Factors - Employee s task - Authority system - Work group M. En C. Eduardo Bustos Farías 21
22 Hersey and Blanchard s Situational Leadership Theory Situational Leadership Theory (SLT) A contingency theory that focuses on followers readiness. Unable and Unable but Able and Able and Unwilling Willing Unwilling Willing Follower readiness: ability and willingness Leader: decreasing need for support and supervision Directive High Task and Relationship Supportive Monitoring Orientations Participative M. En C. Eduardo Bustos Farías 22
23 Leadership Styles and Follower Readiness (Hersey and Blanchard) Follower Readiness Unwilling Willing Able Supportive Participative Monitoring Unable Directive Leadership Styles High Task and Relationship Orientations M. En C. Eduardo Bustos Farías 23
24 Hersey and Blanchard s Situational Leadership Theory Leader Behavior High Relationship Behavior (supportive behavior) Low Participating S3 Share ideas and facilitate in decision making Delegating S4 Turn over responsibility for decisions and implementation Selling S2 Explain decisions and provide opportunity for clarification Telling S1 Provide specific instructions and closely supervise performance Low High R4 Task Behavior Follower Readiness Moderate R3 R2 High Low R1 Follower-Directed Leader-Directed M. En C. Eduardo Bustos Farías 24
25 Transactional versus Charismatic Leadership Transactional Leadership: focuses on the interpersonal interactions between managers and employees Transactional Leaders - use contingent rewards to motivate employees - exert corrective action only when employees fail to obtain performance goals M. En C. Eduardo Bustos Farías 25
26 Transactional versus Charismatic Leadership (continued) Charismatic Leadership: emphasizes symbolic leader behavior that transforms employees to pursue organizational goals over self-interests Charismatic Leaders - use visionary and inspirational messages - rely on non-verbal communication - appeal to ideological values - attempt to intellectually stimulate employees - display confidence in self and followers - set high performance expectations For class discussion: Should a leader be both transactional and charismatic? Is charismatic leadership only critical for senior executives and not for entry level supervisors or managers? M. En C. Eduardo Bustos Farías 26
27 Charismatic Model of Leadership Individual and Organizational Characteristics Traits Organizational Culture Leader behavior Leader establishes a vision Effects on followers and work groups Increased intrinsic motivation, achievement orientation, and goal pursuit Outcomes Personal commitment to leader and vision M. En C. Eduardo Bustos Farías 27
28 Charismatic Model of Leadership (cont) Individual and Organizational Characteristics Traits Organizational Culture Leader behavior Leader establishes high performance expectations and displays confidence in him/herself and the collective ability to realize the vision Leader models the desired values, traits, beliefs, and behaviors needed to realize the vision Effects on followers and work groups Increased identification with the leader and the collective interests of organizational members Increased cohesion among workgroup members Increased selfesteem, self-efficacy, and intrinsic interests in goal accomplishment Increased role modeling of charismatic leadership Outcomes Self-sacrificial behavior Organizational commitment Task meaningfulness and satisfaction Increased individual group, and organizational performance M. En C. Eduardo Bustos Farías 28
29 Leader Member Exchange Theory Leader-Member Exchange (LMX) Theory Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction. M. En C. Eduardo Bustos Farías 29
30 The Leader-Member Exchange (LMX Model) This model is based on the idea that one of two distinct types of leader-member exchange relationships evolve, and these exchanges are related to important work outcomes. - in-group exchange: a partnership characterized by mutual trust, respect and liking - out-group exchange: a partnership characterized by a lack of mutual trust, respect and liking Research supports this model M. En C. Eduardo Bustos Farías 30
31 Assessing your Leader-Member Exchange (LMX) What is the overall quality of your LMX? What are the career and performance implications of your LMX? How might you improve your LMX? Who owns the quality of a LMX (the employer or manager)? Explain. M. En C. Eduardo Bustos Farías 31
32 Substitutes for Leadership Substitutes for leadership represent situational variables that can substitute for, neutralize, or enhance the effects of leadership. Research shows that substitutes for leadership directly influence employee attitudes and performance. M. En C. Eduardo Bustos Farías 32
33 Substitutes for Leadership Characteristic Of the Subordinate Relationship- Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary 1. Ability, experience, training, knowledge X 2. Need for Independence X X 3. Professional orientation X X 4. Indifference toward organizational rewards X X Of the Task 5. Unambiguous and Routine X 6. Methodically invariant X 7. Provides its own feedback concerning accomplishment X 8. Intrinsically satisfying. X M. En C. Eduardo Bustos Farías 33
34 Substitutes for Leadership (cont) Characteristic Of the Organization 9. Formalization (explicit plans, goals, and areas of responsibility) Relationship -Oriented or Considerate Leader Behavior is Unnecessary Task-Oriented or Initiating Structure Leader Behavior is Unnecessary X 10. Inflexibility (rigid, unbending rules and X X procedures) 11. Highly specified and active advisory and staff X X functions 12. Closely knit, cohesive work groups X X 13. Organizational rewards not with the leader s control 14. Spatial distance between superior and X subordinate Source: Adapted from S Kerr and J M Jermier, Substitutes for Leadership:Their Meaning and Measurement, Organizational Behavior M. En C. and Eduardo Human Bustos Performance, Farías December 1978, pp
35 Leader-Participation Model Leader-Participation Model (Vroom and Yetton) A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations. M. En C. Eduardo Bustos Farías 35
36 Servant and Superleadership Servant Leadership represents a philosophy in which leaders focus on increased service to others rather than to oneself. A superleader is someone who leads others to lead themselves by developing employees self-management skills. Superleaders attempt to increase employees feelings of personal control and intrinsic motivation. M. En C. Eduardo Bustos Farías 36
37 Characteristics of the Servant-Leader 1. Listening Servant-leaders focus on listening to identify and clarify the needs and desires of a group. 2. Empathy Servant-leaders try to empathize with others feelings and emotion. An individual s good intentions are assumed even when he or she performs poorly. 3. Healing Servant-leaders strive to make themselves and others whole in the face of failure or suffering. 4. Awareness Servant-leaders are very self-aware or their strengths and limitations. M. En C. Eduardo Bustos Farías 37
38 Characteristics of the Servant-Leader (continued) 5. Persuasion Servant-leaders rely more on persuasion than positional authority when making decisions and trying to influence others. 6. Conceptualization Servant-leaders take the time and effort to develop broader based conceptual thinking. Servant-leaders seek an appropriate balance between a shortterm, day-to-day focus and a long-term, conceptual orientation. 7. Foresight Servant-leaders have the ability to foresee future outcomes associated with a current course of action or situation. M. En C. Eduardo Bustos Farías 38
39 Characteristics of the Servant-Leader (continued) 8. Stewardship Servant-leaders assume that they are stewards of the people and resources they manage. 9. Commitment to Servant-leaders are committed to people the growth of beyond their immediate work role. They people commit to fostering an environment that encourages personal, professional, and spiritual growth. 10. Building Servant-leaders strive to create a sense of Community community both within and outside the work organization. M. En C. Eduardo Bustos Farías 39
40 Contemporary Issues in Leadership
41 Trust: The Foundation Trust of Leadership A positive expectation that another will not through words, actions, or decisions act opportunistically. Trust is a history-dependent process (familiarity) based on relevant but limited samples of experience (risk). M. En C. Eduardo Bustos Farías 41
42 Dimensions of Trust Integrity honesty and truthfulness. Competence an individual s technical and interpersonal knowledge and skills. Consistency an individual s reliability, predictability, and good judgment in handling situations. Loyalty the willingness to protect and save face for another person. Openness reliance on the person to give you the full truth. M. En C. Eduardo Bustos Farías 42
43 Trust and Leadership Leadership TRUST and INTEGRITY M. En C. Eduardo Bustos Farías 43
44 Three Types of Trust Deterrence-based Trust Trust based on fear of reprisal if the trust is violated. Knowledge-based Trust Trust based on behavioral predictability that comes from a history of interaction. Identification-based Trust Trust based on a mutual understanding of each other s intentions and appreciation of the other s wants and desires. M. En C. Eduardo Bustos Farías 44
45 Basic Principles of Trust Mistrust drives out trust. Trust begets trust. Growth often masks mistrust. Decline or downsizing tests the highest levels of trust. Trust increases cohesion. Mistrusting groups self-destruct. Mistrust generally reduces productivity. M. En C. Eduardo Bustos Farías 45
46 Framing: Using Words to Shape Meaning and Inspire Others Framing A way to use language to manage meaning. Leaders use use framing (selectively including or or excluding facts) to to influence how how others see see and and interpret reality. M. En C. Eduardo Bustos Farías 46
47 Inspirational Approaches to Leadership Charismatic Leadership Theory Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. Charismatics Influence Followers By: By: Articulating the the vision Setting high high performance expectations Conveying a new new set set of of values Making personal sacrifices M. En C. Eduardo Bustos Farías 47
48 Beyond Charismatic Leadership Level 5 Leaders Possess a fifth dimension a paradoxical blend of personal humility and professional will in addition to the four basic leadership qualities of individual capability, team skills, managerial competence, and the ability to stimulate others to high performance. Channel their ego needs away from themselves and into the goal of building a great company. M. En C. Eduardo Bustos Farías 48
49 Transactional and Transformational Leadership Transactional Leaders Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Contingent Reward Management by Exception (active) Management by Exception (passive) Laissez-Faire Transformational Leaders Leaders who provide individualized consideration and intellectual stimulation, and who possess charisma. Charisma Inspiration Intellectual Stimulation Individual Consideration M. En C. Eduardo Bustos Farías 49
50 Emotional Intelligence and Leadership Effectiveness Elements of of Emotional Intelligence: Self-awareness Self-management Self-motivation Empathy Social skills M. En C. Eduardo Bustos Farías 50
51 Contemporary Leadership Roles: Providing Team Leadership Team Leadership Roles: Roles: Act Act as as liaisons with with external constituencies. Serve as as troubleshooters. Managing conflict. Coaching to to improve team member performance M. En C. Eduardo Bustos Farías 51
52 Contemporary Leadership Mentor Roles: Mentoring A senior employee who sponsors and supports a less-experienced employee (a protégé). Mentoring Activities: Present ideas clearly Listen well well Empathize Share experiences Act Act as as role role model Share contacts Provide political guidance M. En C. Eduardo Bustos Farías 52
53 Contemporary Leadership Roles: Self-Leadership Self-Leadership A set of processes through which individuals control their own behavior. Creating self self leaders: leaders: Model Model self-leadership. Encourage Encourage employees employees to to create create self-set self-set goals. goals. Encourage Encourage the the use use of of selfrewardsrewards. self- Create Create positive positive thought thought patterns. patterns. Create Create a a climate climate of of selfleadershipleadership. self- Encourage Encourage self-criticism. M. En C. Eduardo Bustos Farías 53
54 Ethical Leadership Actions: Work to to positively change the the attitudes and and behaviors of of employees. Engage in in socially constructive behaviors. Do Do not not abuse power or or use use improper means to to attain goals. M. En C. Eduardo Bustos Farías 54
55 Online Leadership Leadership at a Distance: Building Trust The lack of face-to-face contact in electronic communications removes the nonverbal cues that support verbal interactions. There is no supporting context to assist the receiver with interpretation of an electronic communication. The structure and tone of electronic messages can strongly affect the response of receivers. An individual s verbal and written communications may not follow the same style. Writing skills will likely become an extension of interpersonal skills M. En C. Eduardo Bustos Farías 55
56 Challenges to the Leadership Construct Attribution Theory of Leadership The idea that leadership is merely an attribution that people make about other individuals. Qualities attributed to to leaders: leaders: Leaders Leaders are are intelligent, intelligent, outgoing, outgoing, have have strong strong verbal verbal skills, skills, are are aggressive, understanding, and and industrious. Effective Effective leaders leaders are are perceived perceived as as consistent consistent and and unwavering in in their their decisions. decisions. Effective Effective leaders leaders project project the the appearance of of being being a a leader. leader. M. En C. Eduardo Bustos Farías 56
57 Finding and Creating Effective Leaders Selection Review specific requirements for the job. Use tests that identify personal traits associated with leadership, measure self-monitoring, and assess emotional intelligence. Conduct personal interviews to determine candidate s fit with the job. Training Recognize the all people are not equally trainable. Teach skills that are necessary for employees to become effective leaders. Provide behavioral training to increase the development potential of nascent charismatic employees. M. En C. Eduardo Bustos Farías 57
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