Chapter 13 Contemporary Issues in Leadership

Framing is a way to use language to manage meaning. Leaders can use language to influence
follower's perceptions of the work, the meaning of events, beliefs about causes and consequences,
and visions of the future. Framing is a powerful tool by which leaders influence how others see and
interpret reality.

Inspirational approaches to leadership attempt to inspire followers through words, ideas, and
behaviours and include charismatic and transformational styles. Charismatic leadership is a four-
step process consisting of (1) the leader articulating an appealing vision; (2) the leader
communicating high performance expectations and expressing confidence that followers can attain
them; (3) the leader conveying through words and actions a new set of values and by his or her
behaviour, setting an example for followers to imitate; and (4) the charismatic leader making self-
sacrifices and engaging in unconventional behaviour to demonstrate courage and convictions about
the vision. A charismatic leader's vision is key to follower acceptance. The vision should be value
centred, realizable, with superior imagery and articulation. Visions should be able to create
possibilities that are inspirational, unique, and offer a new order that can produce organizational
distinction. Charismatic leadership is not always positive, as charismatic leaders do not always act in
the best interests of their organizations. However, not all effective leaders are charismatic leaders.
Looking at managers that were highly effective, another type of leader has been identified. A "level-5
leader" has five essential qualities: (1) individual capability; (2) team skills; (3) managerial
competence; (4) the ability to stimulate others to high performance; and (5) a blend of personal
humility and professional will. Level-5 leaders channel their ego needs away from themselves and into
building a great company.

The Ohio State studies, Fiedler's model, and path-goal theory describe transactional leadership - a
style of leadership characterized by managers that clarify role and task requirements. In
contrast, transformational leaders pay attention to the concerns and developmental needs of
individual followers; they change followers' awareness of issues by helping them to look at old
problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra
effort to achieve group goals. Transformational leadership builds on top of the base of transactional
leadership. Transformational leaders encourage their followers to be more innovate and creative and
to pursue ambitious goals. Transformational leaders communicate vision and solicit commitment and
trust from followers. The overall evidence suggests that transformational leadership is more strongly
correlated than transactional leadership with lower turnover rates, high productivity, and higher
employee satisfaction.

Authentic leaders are true to themselves and to their followers, which is reflected in leaders who
view themselves within their social environment and conduct their lives according to their values.
There is a growing interest in ethics and trust in the field of management. Recently, scholars have
integrated ethical and charismatic leadership by advancing the idea of socialized charismatic
leadership, leadership that conveys values that are other-centered by leaders who model ethical
behaviour.

Trust is the positive expectation that another will not, through words, actions, or decisions, act
opportunistically. It implies both familiarity and risk. Recently, trust has been eroded by the scandals
of insider trading, CEO fraud, sexual abuse, and obstruction of justice. The five components of trust
include integrity, competence, consistency, loyalty, and openness. Trust is the key to unlocking
employees' hidden potential of creativity, as creative thinking and problem solving are more likely to
be unleashed in an atmosphere of trust. The three types of trust in organizational relationships are
deterrence-based, knowledge-based, and identification-based. Deterrence-based trust is the most
legalistic in that one violation or inconsistency can destroy the relationship. This form of trust is based
on fear of reprisal if the trust is violated. Knowledge-based trust relies on information rather than
deterrence. Knowledge develops over time, largely as a function of experience that builds confidence
of trustworthiness and predictability. Identification-based trust is an emotional connection between
parties, an emotional connection between two persons that allows them to act on behalf of one
another. Principles of trust include the following: (1) mistrust drives out trust; (2) trust begets trust;
(3) trust can be regained; (4) mistrusting groups self-destruct; and (5) mistrust generally reduces
productivity.

Contemporary leadership roles are much different from the activities in which traditional managers
engaged. Leaders today (particularly in team environments) are expected to assume new
responsibilities, including serving as a liaison with external constituencies, troubleshooters, conflict
managers, and coaches.

Many leaders create mentoring relationships. A mentor is a senior employee who sponsors and
supports a less-experienced employee. While many organizations have formal mentoring programs,
the most effective mentoring relationships exist outside the formal supervisor-supervisee relationship.
Mentors serve both career and psychosocial functions.

Proponents of self-leadership propose that there are a set of processes through which individuals
control their own behaviour. Some have argued that effective leaders, or "superleaders", advocate
employees' managing themselves. The underlying assumptions behind self-leadership are that people
are responsible, capable, and able to exercise initiative without the external constraints of bosses
rules, or regulations.

There has been considerably less research into leadership in online relationships. Leaders in an online
environment must be especially careful to monitor the structure, tone, and style of their
communication with co-workers and subordinates. Managing from a distance for example, or by e-
mail, must be careful to express electronic communications in a way that does not strip employees of
their dignity. In electronic communications leaders must develop the ability to "read between the
lines" in the messages they receive. Emotional intelligence presumes the ability to communicate
support and leadership through written words on a computer screen and to read emotions in others'
messages.

Regardless of their actual performance, leaders may suffer from the attribution theory of
leadership in which leaders are praised when the company does well and criticized when things go
poorly regardless of the external circumstances. In addition, effective leaders are generally considered
consistent in their decisions. Those in leadership roles must exhibit this behaviour as it is consistent
with the expectations of their subordinates.

Certain individual, job, and organizational variables can act as substitutes for leadership
or neutralize the leader's ability to influence his or her followers. Neutralizers make it impossible for
leadership behaviour to make any difference in follower outcomes, while substitutes make a leader's
influence impossible and unnecessary. Experience, training, and a professional orientation may
neutralize the effect of leadership. Organizational characteristics such as explicit, formalized goals,
rigid rules and procedures, and cohesive work groups can also replace formal leadership.

Finally, selection and training can have a significant effect on development of effective leaders.