Reader I/O Psychology Reading Chapter 3 Reference: Berry, L.M. (1999). Psychology at Work. (2 ed). New York: Mc Graw Hill. From Page, No. 303-335 Muchinsky, P.M. (2000). Psychology Applied to Work.(6" ed).USA: . Wadsworth Inc, From Page, No.383-391 By: Fareeha Fatima Department of Psychology, Govt. College University, Faisalabad Pakistan.Chapter 12 Leadership 383 Substitutes for Leadership Kerr and Jermier (1978) asked what it is that organization members need to maxi- mize in seeking organizational and personal outcomes. They concluded that em- ployces seek both guidance and good feelings from their work settings. Guidance usually comes from role or task structuring; good feelings may stem from any type of recognition, The authors feel that although these factors must be present, they do not necessarily have to come from a superior. Other sources may provide guid- ance and recognition as well. In these cases the need for formal leadership is di- minished. The authors reference substitutes for leadership and highlight the point that a leader is merely a vehicle for providing these services. Indeed, some organi- zations have been experimenting with abandoning supervisor positions, leaving such traditional leadership roles in the hands of employees organized into special work teams, Podsakoff, MacKenzie, and Bommer (1996) reported that leaders and substitutes for leadership can simultaneously affect work groups. For example, leaders can create less need for formal supervision by carefully selecting employ- "ees who can function relatively independently. The authors concluded that such substitutes have very important effects on the work group, but they do not dimin- ish the role of the leader. ‘There is evidence that the concept of leadership does not have to be vested in a formal position. Howell and Dorfman (1981) tested whether leader substitution can replace or “act in the place of” a specific leader, They examined whether hav- ing a closely knit cohesive work group and tasks that provide feedback concerning performance can take the place of a formal leader. The authors found partial sup- port for the substitution of leadership, giving some credence to the idea that lead- ership need not always reside in a person. Pierce, Dunham, and Cummings (1984) provided further support for'leader substitutes. They examined four environmen- tal sources from which employees get structure and direction in how to perform their work: the job itself, technology, the work unit, and the leader. The authors found that only when the first three sources of structure were weak did the influ- ence of the leader strongly affect employees. It seems that employees can derive typical leader qualities (that is, structure and direction) from inanimate sources in their environments, and’ that leadership functions need not be associated with someone in authority, It is thus possible to envision a successfully operating Jeaderless group in which the job itself provides direction in what to do (initiat- ing structure) and the work group members support and tend to one another (consideration). ‘There is also evidence that some individuals are capable of directing them- selves, a concept called sella . Manz (1986) found that some employees could lead themselves if their values and beliefs were congruent with those of the organization (see Field Note 3). In summary, the research on substitutes for lead- ership suggests that leadership can be thought of as a series of processes or func- tions that facilitate organizational and personal effectiveness. These processes or functions need not necessarily emanate from a person in a formal leadership role but may be derived from characteristics of the work being performed by the group members.Helo e Note 3 Self-Leadersiup versus Sel|-dupervision ‘he concept of self-leadership is related to many of the issues discussed in Chapter 8 on organizations and teams. Among them are the following. The concept of organizational downsizing has resulted in broader spans of control and flat- ter organizational structures. As a consequence there is less direct supervision of employees because other control mechanisms must become operative to ensure that organizational gonls are met. Small spans of control produce closer supervision but also additional layers in the organization's structure. Reducing the middle- management layer of organizations puts greater pressure on the other parts of the organization to accomplish what middle management once did—providing direction and control. How might such direction and control be provided? One answer is through different or- ganizing concepts, such as self-managed work teams. The work team provides a sense of direc- tion or structure to the group's efforts and pro- vides feedback and support to the team 4 eand ructure a leadership has vented, althoush SEP) func~ support are necessary for organiZ4© femal tioning they need not emanate from @ leadership position. TT shout also be recognized thet workforce is more Nigh ste than ever before. With educa come the knowledges and skills the employee - bring tothe task, lessening the need for @ nape 3 sot to tell employees what to do and to mow their performance. Employees who know 1 needs to be done and have the resources t0 40 do not need extensive supervision. Finally, do not equate supervi leadership One dimension of leadership is over~ sight or supervisory responsibilities. Howevel leadership entails more than just monitoring at directing others. It embraces a sense of vision, af understanding of how the organizational unit can function and even prosper in its environ- ment, Leadership is more inclusive than supervi- sion, Self-directed work teams ameliorate the need for direct supervision, but they do not ob- today’s ed ision with members. As the literature on substitutes for viate the need for organizational leadership, POINTS OF CONVERGENCE AMONG APPROACHES Despite the profusion of leadership approaches and related empirical findings, ‘Yuki (1994) noted there is some convergence in the findings from different lines of leadership research. Yukl identified three consistent themes in the findings from leadership research. Importance of Influencing and Motivating. Influence is the essence of leader- ship. Much of the activity of leaders involves attempts to influence the attitudes and behaviors of people, including subordinates, peers, and outsiders. Motivating behavior includes a variety of social influence techniques for developing commit- ment to organizational objectives and compliance with requests. Much of the influence behavior of charismatic leaders falls into the motivating category, in- cluding inspiring commitment to new objectives and strategies, modeling exem- plary behavior for followers to imitate, and appealing to values and aspirations. Situational factors determine the importance of leader efforts to motivate sub- ordinates. Leader influence on subordinate motivation is much less important when the task is intrinsically appealing. Motivation is more important for a v. dificult task that frustrates and discourages subordinates. For these types of task ealChaptor 12 Leadership 385 the subordinate’s performance will suffer unless the leader intervenes to arouse enthusiasm and confidence. Some of the traits and skills that predict leader effectiveness relate to the use of power. Leaders with high need for power and high self-confidence make more influence attempts. Self-confidence, persuasive ability, relevant expertise, and political insight. facilitate the effectiveness of influence attempts. Interpersonal skills are necessary to articulate an appealing vision and persuade people of the need for change. : Importance of Maintaining Effective Relations. Effective leaders establish cooperative relationships characterized by high levels of mutual trust and loyalty. ‘The power research indicated the importance of referent power as a source of in- fluence over the effect and commitment of subordinates. Referent power over sub- ordinates is developed gradually over time as a result of dyadic social exchange processes in which the leader demonstrates trust and provides benefits to a subor- dinate while avoiding forms of influence that cause resentment, The behavior re- search found that subordinates are usually more satisfied with a leader who is friendly and helpful, shows trust and respect, and demonstrates concern for their needs and feelings. The situational research showed that the effects of leader be- havior depend in part on the needs and values of subordinates. Supportive be- havior is likely to have a stronger effect on subordinate satisfaction when the subotdinate has a stressful, difficult task and lacks self-confidence. Several of the traits and skills predictive of leadership effectiveness appear im- portant for developing favorable relationships with subordinates, peers, and su- periors. Relevant interpersonal skills include tact and diplomacy, listening skills, and social sensitivity. A leader with a positive regard for others is more likely to develop friendly relationships with people, Leaders who are preoccupied with personal ambition tend to do things that jeopardize relationships with people (eg., betraying a trust or reneging on a promise in order to increase their personal gain). Importance of Making Decisions. Much of the activity of leaders involves de- cision making, but leaders seldom make important decisions at a single point in. time, except for problem solving in response to immediate crises. In dealing with day-to-day decisions, effective leaders are guided by their long-term objectives and strategies. People who effectively solve problems or develop successful strategies gain in status and power as a result, The reputation for expertise gained from successful decisions made in the past gives a person greater influence over subsequent deci- sions. Situational theories and research on group decision making suggest the con- ditions under which partleipation is most likely to improve the quality of a leader's decisions. The potential benefits from group decisions are greater for com- plex, important decisions than for routine ones. Participation results in better de- cisions when the participants have relevant information and clear ideas that the leader lacks, when they are willing to cooperate in finding a good solution, and when there is ample time for the participative process to be carried out. Several of the traits’ and skills predictive of leadership effectiveness are relevant for decision making. Leaders with extensive technical knowledge and306 Section 3 Organizational Psychology 3 scisions. These cognitive skills are more likely to make high-quality de ns and important for analyzing problems, identifying causal patter! el forecasting likely outcomes of different strategies for attaining bear the re confidence and tolerance for ambiguity and stress help leaders COP® sporssbilty for making major decisions on the bass of incomplete informs CROSS-CULTURAL LEADERSHIP ISSUES Because of the growing number of organizations that « ness, we are learning about cross-cultural issues in knowledge comes from situations where international managers 2 positions in the United States. Graen and Wakabayashi (1994) studied com, that have manufacturing plants located in both the United States and Japan, such as Toyota. These plants, which use Japanese organization methods and mostly ‘American employees, require cross-cultural leadership to be successful. A Japanese transplant is a manufacturing plant owned by a Japanese parent company and lo- cated in a foreign country. Leadership presents special problems for Japanese transplants in the United States because of cultural differences between the two countries. Following are some of the problems found in Japanese transplants in the United States as identified by Graen and Wakabayashi: 1. Language differences complicate communications and cooperation at managerial levels. Very few domestic managers are able to interpret communications from the Japanese home office, and few Japanese managers can discuss abstract issues in English. Communication is therefore restricted to concrete issues without the ben- efit of any rationale or subtlety. The array of unresolved language problems keeps managers from confronting underlying cultural issues. 2. Japanese managers and workers are shocked by that they perceive as American managers’ seemingly underdeveloped sense of obligation to their company and coworkers. Japanese managers often believe that American managers place their personal in- terests above those of the company and their coworkers. For example, one com- pany launched a new product during deer hunting season and asked its hourly workers to postpone taking days off until the product launch was completed. The Japanese managers were pleased that absenteeism increased by only 5% for pro- duction workers, but they were aghast that absenteeism among American man- agers also increased by 5% during this period. The Japanese managers complained that the American managers should feel a stronger obligation to the company and lead the workers by setting a good example. This perceived underdeveloped sense of obligation makes it difficult for Japanese managers to trust or ely on domestic managers to perform critical tasks. 3, American managers have difficulty with the absence of punishment for insubordi- ration as an ideal. According to the Japanese management principles, workers should not necessarily be punished for resisting a legitimate request by their managers. Instead, their philosophy considers the possibilty that tis the manager who may be at fault for making a request that is resisted. Without insubordis tion as a punishable offense, a manager must develop a sense of obligation ad ‘onduct international bust” leadership. Much of our re assigned to paniesChapter 12 Leadership 387 ownership in his or her workers through leadership development activities. Such activities build mutual obligations that render insubordination as superfluous, 4. American managers see a lack of office perks as a loss of status, The absence of status symbols such as private offices, reserved parking spaces, and management meeting rooms reduces the gulf between hourly workers and management. In ad- dition, some companies require all plant management personnel to work on the shop floor at least one day per month and get their hands dirty. Though domestic managers understand at a conceptual level that such equal treatment helps reduce the social distance between hourly workers and managers, they feel the loss of sta- tus associated with a lack of perks at an emotional level. Compared to their cohorts in domestic companies, they feel that their situation is inferior and that they are not treated as well. 5. Americas managers do not commit their entire career to a single company. According to the authors, one of the most serious challenges Japanese transplants face is management mobility in the United States. Japanese transplants very care- fully recruit and select domestic managets for home and staff functions. They hope that everyone hired will retire with the company. When domestic.managers leave the transplant for another company, Japanese managers feel the loss doubly. First, they must repair their extensive networks by assuming the obligations of their de- parted peer and prepare for a new person to grow into the numerous company networks. This kind of adjustment is especially difficult for the Japanese leader- ship system because it is based’on stable teams of committed managers. Second, many Japanese managers have difficulty accepting that a domestic manager can proclaim allegiance to a company and ten leave within a year or two for another company—especially if it isa direct competitor. Graen and Wakabayashi believe American and Japanese managers face differ- ent fears when confronted with a culture clash. The Americans fear that adopting” the Japanese system could subvert traditional American values of individualism, Alternatively, the Japanese fear that adopting the American management system’ could undermine traditional Japanese values of teamwork. The authors pointed out that functional solutions to this dilemma can be reached when both parties are willing to learn each other’s culture and work together to create a hybrid culture. Indeed, House, Wright,and Aditya (1997) and Bond and Smith (1996) contended that cultural differences in societies influence individual expectations and as- sumptions about their environment, attitudes toward others, and modes of social interaction. They proposed that cultural forces affect the kind of leader behavior that is usually accepted, enacted, and effective within an organization. This view of successful leadership being “culturally dependent” contrasts with the univer- sality of leadership posited by transformational leadership theory. —- DIVERSITY ISSUES IN LEADERSHIP Hogan, Curphyy, and Hogan (1994) questioned the role of leadership within orga- nizations in the 21st century. They made the following observations. Historically, the typical American worker has been a White man with a high school education308 : sychelony yr Section 3 Organieauional Psychology es 0% dership iargly fornia" employed ina manufacturing job. Our knowledge of lea‘ how to lead that kind of person in those kinds of jobs in those kinds ©! a shift tions, Demographic trends suggest, however, that the national economy 1 pore from manufacturing to service jobs and that the workforce will ecome IGE ag h diverse, and more female (Offerman & Gowing, 1990). The labor market orson workers will tighten, and there will be increased competitts for talented PoE nel. As noted in Chapter 8, as organizations ‘shrink, fewer middle mana a needed, and the responsibilities of first-line managers will expand: aitfer- ‘Chemers and Murphy (1995) noted that one ‘explanation for gender ences in leadership is cultural. Tis view holds that because of their ro iy caretakers, wornen are socialized to be sensitiv nurturing and cain: they carry that socialization over into organization re likely nal roles, women a} warmer, considerate, and democratic leaders. An alternative explanation Pro that observed differences in leadership style betwen men and women are MOTE function of biases in the observation process than the result of true differences: we are more likely to notice and remember behaviors that are consistent with our categorical stereotypes, ‘our observation of male and female leaders may be biasec in attention, selection, memory, OF recall While minor differences may exist in Jeadership styles between men and women, OUF ibjases exaggerate the perception of these differences. We do not have sinority employees in service organizatios 1 same percentages of women a it workforce. Are there significant ane beat way to manage female and ws, Moreover, we will likely have the nmanagement asaze currently 19 the gender or cultural differences in leadership style, and will these styles be more or less effective for ‘building teams in tomorrow's OF ganizations? Eagly, Makhijani, ‘and Klonsky (1992) provided some answers to these questions. They examined research on the evaluation of men and women who occupy leadership roles. While holding organizational characteristics con- the research assessed whether peo- stant and examining the gender of the lead Je are biased against female lea he findings showed only a small rel! tendency to evaluate female leaders less favorably than male leaders, this tendency was more pronounced under certain circums!anee) Specifically, women re devalued relative to theit male counterparts when especially when this in leadership positions wé leadership was carried out in stereotypically masculine styles, ‘devaluation was greater when leaders ‘he evaluators were women. In a meta- style was autocratic or directive. Als, the occupied male-dominated roles and when t snalysis of studies examining gender and effectiveness of leaders, Eagly, Karau, and Makhijani (1995) reported that the congruence of leadership roles with lead- effective than women in roles and women were more effective than extensive knowledge on ers’ gender enhanced effectiveness. Men were more in more masculine terms, that were defined i men in roles that were defined in less masculine terms. —_—_— CONCLUDING COMMENTS In summary, although ship, the approaches ag ches have been taken to understand leader- several approa lusion that leadership is a vital process in sree in the conch| | | I | | 1 | Chapter 12 Leadership 369 directing work within organizations. There appear to be boundary conditions re- garding when formal ieadership is most effective as well as the processes leaders use to galvanize the members of their organizations. It is also insightful that cur- rent thinking about leadership considers leaders as not only heroes but also as hero makers. Thus, leadership need not be a phenontenon vested exclusively in upper-level positions, but rather is a contagious process that can manifest itself throughout all levels of an organization. Perhaps future research will be directed toward understanding the contagion of leadership. CASE STUDY © Which Direction Should We Follow? Wayne LaPoe, president of Americom, studied his notes in preparation for the company’s annual business planning and strategy meeting. It was at this mecting that most of the major goals for the next year would be set. As a diversified com- pany in the communications field, Americom could go in several different direc- tions, However, they basically boiled down to two possible avenues. One was to develop a wider range of products in anticipation of changing market needs. The other was to increase the sales and marketing of existing products. Each direction had its own champion within the company, and the decision of which path the company should take would be decided at the meeting where two executive vice presidents would state their cases. Brandon McQuaid, vice president of Sales and Marketing, was a dominant force within the company. McQuaid stood 6 feet 4 inches tall, was perfectly trim, always appeared slightly tanned, and had an engaging smile and a resonant voice. He was impeccably dressed in the latest styles. He inspired tremendous loyalty among his staff, Always warm and gregarious, McQuaid was liked by everyone, It would be difficult not to like McQuaid, thought LaPoe. McQuaid had a knack for making everyone feel good about themselves, and he usually got a great deal of support for his ideas. Ralph Pursell was vice president of Research and Development. An engineer by training, Pursell was about as different from McQuaid as night from day. Pursell was 5 feet 7 inches tall, at least 30 pounds overweight, and often appeared unkempt. No one ever accused Pursell of making a fashion statement. While his interpersonal skills were minimal, lurking behind his chubby face was the mind of a brilliant product designer. It was under his guidance in product development that Americom captured a huge share of the market in fiber optics. He was the most highly respected employee in the company. While some made snide remarks behind his back about his physical appearance, many employees realized they owed their jobs to Pursell’s genius. LaPoe anticipated how the planning meeting would go. He had seen it unfold the same way in past years. Pursell would make a pitch for developing some new products, using language that only he understood. The other executives in the room would simply take it on faith that Pursell knew what he was talking about. Then McQuaid would have his tum. Radiating confidence and optimism, Mc- Quaid would soon have just about everyone eating out of his hand. He would ar- gue that the company hadn't begun to scratch the surface in marketing Pursell’s390 on 3 Organizational Psychology it Current trendsetting products. After 15 minutes of this charm, there would bee Ie of smiling and head nodding inthe room, When all was said and done, it we ald ally McQuaid’s position that the management staff voted to adopt. Pursell Wo i 0 back to his lab and wonder why the rest of the company didn’t see things way. LaPoe questioned whether his management sta responded) mOMr, e McQuaid’ form than to Pursel's substance He did't want o alienate his staff by overturning their approval of McQuaid’s position. Yet LaPoe wondered how at longer Pursell would continue to live with losing battles to McQuaid. LaPoe Ie) connewhat tapped himselt, He needed th loyalty and commitment inspited PY McQuaid, yet it was Pursell ideas that McQuaid sold. LaPoe concluded that ifit were possible to combine Pursell’s technical ability with McQuaid’s interpersonal skills, Americom would probably have a new president. Questions 1. Isthe management staff blinded by McQuaid’s engaging leadership style, or is charm a legitimate component of leadership? Should all leaders have strong interpersonal skills, or is someone like Pursell entitled to leadership position on the basis of technical expertise? | If you were LaPoe, would you recommend that Pursell get some training > iniegpersonal skills and coinmunieation to enhatce his credibility? Why, oF why not? Why are so many pedple at Americom “taken” with McQuaid? What does this suggest about why we accept people as leaders? Is therea difference between having influence and being a ender? In what ways are these concepts related and unrelated? INFOTRAC ARTICLES 1, New Statesman (1996), June 28, 1996 v125 14290 p35(1) Merely importing East Asian work practices isn’t enough. Peter Popham Discusses how leaders of industry in Great Britain want the Asian work ethic from their employees but are reluctant to adopt the Asian approach of giving, employees responsibility . Journal of Sport Behavior, Dec 1998 v21 i4 p38? Leader member exchange theory and sport: Possible applications, Robert Case Discusses how the leader member exchange theory was applied to basketball teams based on a study of starters (the in-group) and nonstarters (the out- up). Taig & Development, May 1997 v1 n5 p58(14) How leaders develop leaders. Eli Cohen & Noel Tichy Discusses the importance of business leaders developing the skills oftheir sub- ordinates to ensure the continued prosperity oftheir organizations. PpChapter 12 Leadership 391 4. Training & Development, Feb 1998 v52.n2 p12(2) The 10 commandments »f team leadership. Kenneth E, Hultman Recommends 10 rules leacters should follow to maintain and enhance their team's effectiveness, Vital Speeches, Jan 15, 1997 v63 n7 p202(4) Toward a female model: Leadership. A speech by a female CEO who des¢ribes the qualities female leaders bring to the workplace in addition to the traditional rengths of leaders. The Futurist, Jan-Feb 1997 y31 nt p68(1) Seven new principles on leadership. Donna C. L. Prestwood & Paul A. Schumann, Jr. Asserts that leadership is a path of personal growth reflecting a state of mind, not a position, Proposes seven principles of leadership that reflect this view- point, , Across the Board, Sep 1996 v33.n8 p28(5) The rush to leadership training, Louis S.Csoka Discusses that the need for leadership training has become more acute as saci- ety is in need of more leaders. . . Training & Development, July 1995 v49 n? p32(3) Leadership counts at Sears. Alan Perry & Dorothy Cottrell Describes a cost-effective method of leadership training used at Sears, Roebuck & Co. that has proven successful in developing a large and geographically dis- persed workforce, i a = N ~zulure of a work role,and oine, ‘l nedrists fell you eloped leadership training programs for this purpose >, Suieeneme cre In reality, in thi Prior to the 1960s, most eaderhip revarch foe on sohile men, Sine that tne, here been ineesing alee lhe experiences ofwomen and elit presi badeipptin