Chapter 17 LEADERSHIP Prentice Hall, 2002 17-1
You should learn to: Learning Objectives 1. Explain the difference between managers and leaders 2. Describe the trait and behavioral theories of leadership 3. Explain the Fiedler contingency model 4. Contrast the Hersey-Blanchard and leader participation models of leadership 5. Summarize the path-goal model Prentice Hall, 2002 17-2
You should learn to: Learning Objectives (cont.) 1. Contrast transactional and transformational leaders 2. Describe the main characteristics of charismatic, visionary, and team leaders 3. Explain the various sources of power a leader might possess 4. Describe how leaders can create a culture of trust 5. Explain gender and cultural differences in leadership Prentice Hall, 2002 17-3
Manager and Leader Some Authors treat them equally. Managers appointed to their positions. Their abilities to influence based on the formal authority inherited in that position. Leaders may be either appointed or emerged from a work group. Prentice Hall, 2002 17-4
Leader Leadership someone who can influence others and who has managerial authority. all managers should ideally be leaders. not all leaders have the ability to be an effective manager. (performing management functions). Leadership process of influencing a group toward the achievement of goals. a heavily researched topic Prentice Hall, 2002 17-5
Early Leadership Theories Trait Theories: Research in the 1920s and 1930s focused basically on leader traits. leader traits - characteristics that might be used to differentiate leaders from non-leaders. (see next page for the characteristics). Might be used as a basis for selecting the right people to assume formal leadership positions. Proved to be impossible to identify a set of traits that would always differentiate leaders from non-leaders. Explanations based solely on traits ignored the interactions of leaders, their groups, and situational factors. Prentice Hall, 2002 17-6
Traits associated with leadership 1- drive: have ambitious and energy, tirelessly. 2- desire to lead. 3- honesty and integrity: building trusting relationships. 4- self-confidence. 5- Intelligence 6- job relevance knowledge. Prentice Hall, 2002 17-7
Early Leadership Theories Behavioral Theories Identify behavior that differentiate effective leaders from ineffective leaders. There are four leader behavior studies: First: University of Iowa Studies - Kurt Lewin. Explored three leadership styles: Autocratic - leader dictated work methods. Centralize authority. Democratic - involved employees in decision making. used feedback to coach employees Laissez-faire/lenient - gave the group complete freedom to make decisions and complete work. Which style is better? Discussion results were mixed with respect to performance satisfaction higher with democratic leader Prentice Hall, 2002 17-8
Early Leadership Theories (cont.) Behavioral Theories (cont.): Second: Ohio State Studies - identified two dimensions of leadership behavior. initiating structure - a leader was likely to define and structure her/his role and the roles of group members to seek goal attainment. It includes: attempts to organize work, work relationships, and goals. consideration - a leader had job relationships characterized by mutual trust and respect for group members ideas and feelings. findings - high-high leaders achieved high group task performance and satisfaction however, high-high was not always effective. There is a need to integrate situational factors. Prentice Hall, 2002 17-9
Early Leadership Theories (cont.) Behavioral Theories (cont.). Third: University of Michigan Studies - identified two dimensions of leadership employee oriented - emphasized interpersonal relationships accepts individual differences among subordinates associated with high group productivity. production oriented - emphasized the technical or task aspects of the job. concerned with accomplishing the group s tasks associated with low group productivity and low job satisfaction Prentice Hall, 2002 17-10
Early Leadership Theories (cont.) Behavioral Theories (cont.) Fourth: Managerial Grid - two-dimensional grid that provides a framework for conceptualizing leadership style dimensions are concern for people and concern for production. It ranked them on scale from 1 to 9. though we have 81 potential categories, emphasis was placed on five management styles described. impoverished (1,1) - minimum effort to reach goals and sustain organization membership. Task management (9,1) - arrange operations to be efficient with minimum human involvement. middle-of-the-road (5,5) - adequate performance by balancing work and human concerns Prentice Hall, 2002 17-11
Early Leadership Theories (cont.) Behavioral Theories (cont.) Managerial Grid (cont.) five management styles described (cont.) country club (1,9) - attention to human needs and creation of comfortable work environment. Limited concern for production. team (9,9) - committed people motivated by a common purpose, trust, and mutual respect. concluded that managers should use (9,9) style. little empirical evidence to support that (9,9) style is effective in all situations. The Grid offer no answer for what made a manager an effective leader Prentice Hall, 2002 17-12
Contingency Theories Of Leadership Basic Assumptions leader effectiveness depends on the situation. must isolate situational conditions or contingencies Prentice Hall, 2002 17-13
Contingency Theories (cont.) Fiedler Model effective group performance depends on matching the leader s style and the degree to which the situation permits the leader to control and influence. Fiedler believes that person s style was one of two: task oriented or relationship oriented. He developed: Fiedler developed the least-preferred co-worker (LPC) questionnaire, that measures whether a person is task or relationship oriented. This questionnaire contained 16 pairs of adjectives, and the leaders were asked to describe the person they least preferred to work with. He also isolated three situational criteria that he believed could be manipulated\controlled to create the proper match with the behavioral orientation. Prentice Hall, 2002 17-14
Contingency Theories (cont.) Fiedler Model (cont.) These three criteria are as follows: leader-member relations - degree of confidence, trust, and respect members had for leader. Task structure - degree to which job assignments were formalized and procedurized. Position power - degree of influence a leader had over power-based activities. such as hiring, firing, discipline, promotions, and salary increases. model assumes that leader s style was always the same and could not change in different situations Prentice Hall, 2002 17-15
Findings Of The Fiedler Model Performance Good Poor Favorable Moderate Unfavorable Task Oriented Relationship Oriented Category Leader-Member Relations Task Structure Position Power I II III IV V VI VII VIII Good Good Good Good Poor Poor Poor Poor High High Low Low High High Low Low Strong Weak Strong Weak Strong Weak Strong Weak Prentice Hall, 2002 17-16
Contingency Theories (cont.) Fiedler Model (cont.) results indicated that: task-oriented leaders performed better in situations that are very favorable to them and in situations that are very unfavorable relationship-oriented leaders performed better in situations that are moderately favorable Implications for improving leadership: 1. place leaders in situations suited to their style 2. change the situation to fit the leader Considerable empirical support for the model Drawbacks: unrealistic to assume that leader cannot alter her/his style Prentice Hall, 2002 17-17
Contingency Theories (cont.) Hersey and Blanchard s Situational Leadership Theory appropriate leadership style is contingent on the followers readiness readiness - extent to which people have the ability and willingness to accomplish a specific task. reflects the reality that it is followers who accept or reject the leader. based on two leadership dimensions task behaviors and relationship behaviors. Prentice Hall, 2002 17-18
Contingency Theories (cont.) Situational Leadership Theory (cont.) four leadership styles defined by the two dimensions Telling (high task-low relationship) leader defines roles and tells people how to do their jobs. people are neither competent nor confident. Suitable R1 Selling - (high task- high relationship) leader is both directive and supportive. people are unable but willing to do necessary tasks. Suitable R2 Prentice Hall, 2002 17-19
Contingency Theories (cont.) Situational Leadership Theory (cont.) four leadership styles defined by the two dimensions Participating - (low task- high relationship) leader and follower make decisions people are able but unwilling to do the job. Suitable R3 Delegating - (low task-low relationship) leader provides little direction or support. people are able and willing to do the job. Suitable R4 Tests of the theory have yielded disappointing results. Because of internal model ambiguities and inconsistencies. Prentice Hall, 2002 17-20
Hersey and Blanchard s Situational Leadership Model Prentice Hall, 2002 17-21
Contingency Theories (cont.) Leader-Participation Model Victor Vroom and associates - relate leadership behavior and participation to decision making. Developed in the early 1970s. The model argues that leader behavior must adjust to reflect the task structure- whether, routine, nonroutine. Provides a sequential set of rules to follow in determining the form and amount of participation in decision making. Rule selection determined by the situation. Prentice Hall, 2002 17-22
Contingency Theories (cont.) Leader Participation Model(cont.) 5 Leadership Styles Decide - leader makes decision alone, either announcing or selling to group Consult Individually - leader makes decision after obtaining feedback from group members individually Consult Group - leader makes decision after obtaining feedback from group members in meeting Facilitate - leader, acting as facilitator, defines problem and boundaries for decision-making after presenting it to group Delegate - leader permits group to make decision within prescribed limits Prentice Hall, 2002 17-23
Time-Driven Model Prentice Hall, 2002 17-24
Time-driven model Short-term in its orientation and concern with making effective decisions with minimum cost. Prentice Hall, 2002 17-25
Path-Goal Model Contingency Theories (cont.) Robert House - leader s job is to assist followers in attaining their goals that are compatible with the overall objectives of the group or organization. Path-goal theory says that a leader s behavior is acceptable to subordinates to the degree that they view it as an immediate source of satisfaction or a source of future satisfaction. Prentice Hall, 2002 17-26
Path-Goal Model Contingency Theories (cont.) leader behavior is: acceptable to the degree that group views it as a source of immediate or future satisfaction motivational to the extent that it: makes satisfaction of subordinates needs contingent on effective performance provides the coaching, guidance, support, and rewards necessary for effective performance Prentice Hall, 2002 17-27
Contingency Theories (cont.) Path-Goal Model (cont.) identifies four leadership behaviors 1. Directive - describes tasks, sets schedules, and offers guidance on task performance. 2. Supportive - shows concern for subordinates. 3. Participative - consults with subordinates and uses their suggestions before making a decision. 4. Achievement oriented - sets challenging goals and expects subordinates to perform at their highest level. assumes that a leader can display any or all of the behaviors depending on the situation. Prentice Hall, 2002 17-28
Contingency Theories (cont.) Path-Goal Model (cont.) two contingency variables affect the leadership behavior: environment - outside the control of the follower. determine the type of leader behavior required if follower outcomes are to be maximized. personal - characteristics of the follower. determine how the environment and leader behavior are interpreted leader behavior will be ineffective when: 1. It is redundant\ unneeded with sources of environmental structure. 2. it is incongruent\unrelated with follower characteristics. Prentice Hall, 2002 17-29
Some examples of the hypotheses Some examples of the hypotheses that have evolved out of path-goal theory include the following: a. Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful than when they re highly structured and well laid out. b. Supportive leadership results in high employee performance and satisfaction when subordinates are performing structured tasks. c. Directive leadership will lead to higher employee satisfaction when there is substantive conflict within a work group. d. Achievement-oriented leadership will increase subordinates expectancies that effort will lead to high performance when tasks are ambiguously structured. Prentice Hall, 2002 17-30
Evidence supports to the Theory Although not every research finding has been positive, the majority of the evidence supports the logic underlying pathgoal theory, which is as follows: a. Employee performance and satisfaction are likely to be positively influenced when the leader compensates for shortcomings in either the employee or the work setting. b. However, if the leader spends time explaining tasks when those tasks are already clear or when the employee has the ability and experience to handle them, the employee is likely to see such behavior as redundant or even insulting. Prentice Hall, 2002 17-31
Leader Behavior Directive Supportive Participative Achievement oriented Path-Goal Theory Environmental Contingency Factors Task Structure Formal Authority System Work Group Subordinate Contingency Factors Outcomes Performance Satisfaction Locus of Control Experience Perceived Ability Prentice Hall, 2002 17-32
Cutting-Edge Approaches To Leadership Three contemporary approaches to leadership: First: Transformational-Transactional Leadership transactional - leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. transformational - inspire followers to transcend\increase their own self-interests for the good of the organization. capable of having profound effect on followers. pay attention to concerns of followers. change followers awareness of issues. excite and inspire followers to put forth extra effort. built on top of transactional leadership. good evidence of superiority of this type of leadership. Prentice Hall, 2002 17-33
Cutting-Edge Approaches (cont.) Three contemporary approaches to leadership: Second: Charismatic-Visionary Leadership It suggests that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. charismatic - enthusiastic, self-confident leader whose personality and actions influence people. Personal characteristics: 1. Have a vision, 2. Are able to articulate that vision, 3. Are willing to take risks to achieve that vision, 4. Are sensitive to both environmental constraints and follower needs, 5. Exhibit behaviors that are out of the ordinary charismatic leadership correlated with high job performance and satisfaction among followers individuals can be trained to exhibit charismatic behaviors Prentice Hall, 2002 17-34
Cutting-Edge Approaches (cont.) Three contemporary approaches to leadership: Second: Charismatic-Visionary Leadership (cont.) visionary - is described as going beyond charisma with the ability to create and articulate a realistic, credible, attractive vision of the future for an organization. 1. If the vision is properly selected and implemented, it can be so energizing that it incites\provoke individuals to use their skills, talents, and resources to make it happen. 2. A vision differs from other forms of organizational direction in that it uses compelling imagery, taps into people s emotions and energy, and creates the enthusiasm that people need to bring energy and commitment to the workplace. 3. The key properties of a vision are that it has inspirational possibilities that are value centered, are realizable, and are well articulated. 4. What skills do visionary leaders have? a. The ability to explain the vision to others. b. The ability to express the vision not just verbally but through behavior. c. The ability to extend or apply the vision to different leadership contexts. Prentice Hall, 2002 17-٣٥
Cutting-Edge Approaches (cont.) Three contemporary approaches to leadership: Third: Team Leadership As the usage of work teams grows, the role of team leader becomes increasingly important. 1. The challenge for most managers is learning how to become an effective team leader. 2. Effective team leaders have mastered the difficult balancing act of knowing when to leave their teams alone and when to get involved. Prentice Hall, 2002 17-٣٦
Cutting-Edge Approaches (cont.) Three contemporary approaches to leadership: Third: Team Leadership There are two priorities for a team leader. a. Managing the team s external boundaries b. Facilitating the team process. These priorities can be broken down into four specific leadership roles. (See Exhibit 17.9 on p. 474.) a. Liaisons with external constituencies b. Troubleshooters c. Conflict managers d. Coaches Prentice Hall, 2002 17-37
Cutting-Edge Approaches (cont.) Three contemporary approaches to leadership: Team Leadership (cont.) team leaders serve as: Liaisons\links with external constituencies - clarify others expectations of the team, gather information from the outside, and secure needed resources troubleshooters - ask penetrating questions, help team talk through problems, and gather needed resources conflict managers - identify source of conflict, who is involved, and find resolution options coaches - clarify role expectations, teach, offer support, and whatever else is necessary to keep performance levels high Prentice Hall, 2002 17-38
Specific Team Leadership Roles Coach Liaison with external constituencies Team Leadership Roles Conflict manager Troubleshooter Prentice Hall, 2002 17-39
Contemporary Issues In Leadership Leaders and Power What is power? the capacity of a leader to influence work actions or decisions. And because leadership is all about influence, we need to look at how leaders acquire power. Prentice Hall, 2002 17-40
Contemporary Issues In Leadership Leaders and Power French and Raven identified five sources or bases of power. 1. legitimate - authority associated with a position in the formal organizational hierarchy. 2. Coercive\compelling - ability to punish or control. followers react out of fear 3. reward - ability to give positive benefits provide anything that another person values 4. expert - influence based on special skills or knowledge 5. referent\source - arises because of a person s desirable resources or personal traits leads to admiration and desire to be like that person Most effective leaders rely on several different bases of power. Prentice Hall, 2002 17-41
Contemporary Issues In Leadership (cont.) 1. Credibility is the degree to which followers perceive someone as honest, competent, and able to inspire. 2. Trust is the belief in the integrity, character, and ability of a leader. 3. Research has identified five dimensions that make up the concept of trust. a. Integrity (honesty and truthfulness) b. Competence (technical and interpersonal knowledge and skills) c. Consistency (reliability, predictability, and good judgment in handling situations) d. Loyalty (willingness to protect a person, physically and emotionally) e. Openness (willingness to share ideas and information freely) Prentice Hall, 2002 17-42
Contemporary Issues In Leadership (cont.) 4. Given the fact that many organizations have moved to selfmanaged work teams, trust is extremely important because many of the traditional control mechanisms have been removed. 5. How should leaders build trust? Here are eight suggestions. a. Practice openness. b. Be fair. c. Speak your feelings. d. Tell the truth. e. Show consistency. f. Fulfill your promises. g. Maintain confidences. h. Demonstrate competence. Prentice Hall, 2002 17-43
Building Trust Practice openness Be fair Demonstrate competence Speak your feelings Trust Maintain confidences Tell the truth Fulfill your promises Show consistency Prentice Hall, 2002 17-44
Contemporary Issues In Leadership (cont.) Leading Through Empowerment Empowerment: increasing the decision making discretion\judgment of workers. The increased use of empowerment is being driven by two forces. a. The need for quick decisions by those people who are most knowledgeable about the issues. b. The reality that organizational downsizing has left managers with larger spans of control and in order to cope, managers are turning to employee empowerment. Empowerment should not be considered a universal panacea\solution to problems. This universal perspective is anti-contingency. Instead, should be used where a workforce has the knowledge, skills, and experience to do jobs. Prentice Hall, 2002 17-45
Contemporary Issues In Leadership (cont.) Gender and Leadership The evidence generally has found that males and females do use different leadership styles. a. Women tend to adopt a more democratic or participative style and a less autocratic or directive style than men do. b. Women are more likely to encourage participation, share power and information, and attempt to enhance followers self-worth. c. Men are more likely to use a directive, command-andcontrol style. d. Men rely on the formal authority of their position for their influence base. e. Men use transactional leadership, handing out rewards for good work and punishment for bad. Prentice Hall, 2002 17-46
Contemporary Issues In Leadership (cont.) Leadership Styles in Different Countries effectiveness of leadership style influenced by national culture. leaders constrained by the cultural conditions their followers have come to expect. most leadership theories developed in the U.S: emphasize follower responsibilities rather than rights assume self-gratification\satisfaction rather than commitment to duty assume centrality of work and democratic value orientation stress rationality rather than spirituality Prentice Hall, 2002 17-47
Features of Arab Management 1- Status and seniority significantly outweigh ability and performance 2- Low level of delegation 3- Authoritarian management style 4- Decision-making is pushed upwards 5- Decisions are renegotiable at later time 6- Absence of Western-style of democratic systems 7- Consultative style of decision-making are dominant, and conducted on a person-to-person basis Prentice Hall, 2002 17-48
Features of Arab Management 8- Management is reactive and crisis oriented 9- High level of uncertainty at work 10- Strong preference of a person-oriented approach rather than a task oriented approach. 11- Nepotism is regarded as natural and acceptable 12- Value loyalty over efficiency 13- Punctuality and time are of much less concern 14- Patriarchy society, the dominance of the father Prentice Hall, 2002 17-49
Contemporary Issues in Leadership (cont.) Sometimes Leadership is Irrelevant! leader behaviors may be irrelevant in some situations factors that reduce leadership importance include: 1. follower characteristics - experience, training, professional orientation, or need for independence replace the need for leader support and ability to reduce ambiguity. 2. job characteristics - unambiguous and routine tasks, or tasks that are intrinsically satisfying, place fewer demands on leaders 3. organizational characteristics - explicit goals, rigid rules and procedures, and cohesive work groups can substitute for formal leadership Prentice Hall, 2002 17-50