Leadership and Change Management

Lesson 2

BITS Pilani Dr. Swati Alok date : 13/1/17

Pilani Campus
 BITS Pilani
Hyderabad Campus

Chapter- 2:Traits , behaviors and Relationship

Learning objectives

• Trait theories
• Behavioral theories
• Leader exchange theory
• Traits of entrepreneurial leaders

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Transition to leadership
(p 60-61) chapter-2

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Transition to leadership

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Synopsis of the case :
• Michael Collins who joined as Southwest Regional Manager of Creighton Auto Parts, saw the transition
period before and immediately following his appointment as an exciting new opportunity.

• Knowledgable- degree in automative engineering, looking for productive innovations

• During the initial stages of this period he received inputs on the company’s procedures, products and
services, and individual stakeholders from the outgoing regional manager.

• As, a first step of his transition, he sent a lengthy e-mail message to all key players on his new leadership
team both as introduction and as a prelude to establishing his vision and transition program.

• He traveled around the region meeting with the store managers on his regional team, as well as held
informal meetings with front-line employees. His questions to front-line workers, in particular, had both
positive and negative aspects. He discovered that for most of them, this was more than just a job. Many had
worked for the company for a number of years and had a great deal of pride in the company, as well as a
deep sense of responsibility toward their customers.

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Synopsis of the case

• Meeting with marketing staff: Customer satisfaction level, complaints,

area demographics, Analyse of market data
• Michael is an idea guy, a hands-on manager who likes to surround himself
with similar kinds of people. He generates ideas and expects follow-up and
accountability.

• The leadership model he embraces sets the bar high for him and for
everyone who works for him. He looks forward to injecting a new vision
and new standards of service throughout the region.

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
The Trait Approach

• Traits: Distinguishing personal characteristics of a

leader
• Great Man approach: Sought to identify the
inherited traits leaders possessed that distinguished
them from people who were not leaders

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Looking at

Personality traits such as creativity and self-confidence

Physical traits such as age and energy level
Abilities such as knowledge and fluency of speech
Social characteristics such as popularity and sociability
Work-related characteristics such as the desire to excel
and persistence against obstacles

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Exhibit 2.1 - Personal Characteristics of
Leaders

Sources: Bass and Stogdill’s Handbook of Leadership: Theory, Research, and Management Applications, 3rd ed. (New York: The Free Press, 1990), pp. 80–81;
S. A. Kirkpatrick and E. A. Locke, “Leadership: Do Traits Matter?” Academy of Management Executive 5, no. 2 (1991), pp. 48–60; and James M. Kouzes and
Barry Z. Posner, The Leadership Challenge: How to Get Extraordinary Things Done in Organizations (San Francisco: Jossey-Bass, 1990)
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What do you see as Michael Collins’s leadership traits?

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Trait theories

• In a 1948 literature review, Stogdill examined more

than 100 studies based on the trait approach
• 1948-1978- 163 studies . (depends on situation)
example : initiative successful in entrepreneurial
situations but not in stable bureaucratic situations

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Characteristics of Leaders
Optimism
• Tendency to see the positive side of things and expect that things will
turn out well

Self-confidence
• Assurance in one’s own judgments, decision making, ideas, and
capabilities

Honesty
• Refers to truthfulness and nondeception

Integrity
• Quality of being whole, integrated, and acting in accordance with solid
ethical principles

Drive
• High motivation that creates a high effort level by a leader
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What are Strengths?

• Natural talent or ability that has been supported and

reinforced with learned knowledge and skills
• Acts as the central point of focus in life
– Enables leadership to be based on:
• Energy
• Enthusiasm
• Effectiveness
 

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Matching Strengths with Roles

Operational role
– Vertically oriented leadership role
– Executive has direct control over people and resources and
the position power to accomplish results
– Leaders
• Deliver results
• Assertive
• Analytical and knowledgeable
• Riveted on changing knowledge to vision

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Matching Strengths with Roles

• Collaborative role
– Horizontal leadership role
– Leader works behind the scenes and uses personal power to influence
others and get things done
• Proactive
• Flexible
• Manage ambiguity and uncertainty

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Matching Strengths with Roles

• Advisory role
– Provides advice, guidance, and support
– Responsible for developing broad organizational capabilities rather
than accomplishing specific business results 
– Leaders
• People skills
• Ability to influence others
• High levels of honesty and integrity

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Scenarios : matching traits with role – example

• Emma works as the general manager of Hazel Inc., an apparel

manufacturer. Her daily routine involves setting goals and creating plans.
She controls her subordinates using the power inherent in her position.
She is very knowledgeable and is able to communicate her company’s
vision to her followers.
• Frank heads the sales team of GlobeTrot Inc. He prefers not to call
attention to his work and inspires others to work effectively. He has the
ability to communicate well. He is extremely firm; however, he is also
flexible when dealing with uncertainty and change.
• Susanna works as the human resources manager of Iris Inc. She provides
support and aid to all employees in her organization. She solves various
queries or grievances regarding salaries, incentives, training, and other
aspects. She executes her role with honesty and has the ability to build
trust among others

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 2.2 - Three Types of Leadership Roles

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Behavioral Theories

– University of Iowa Studies (Kurt Lewin)

Autocratic Leader – one who derives power from
position and centralizes authority around himself
Democratic Leader – delegates authority to
followers encourages participation relies on
subordinate’s knowledge and depends on
subordinate’s respect for influence

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
IOWA studies result - Autocratic vs. Democratic
Leadership
– The groups with autocratic leaders performed highly so long as the
leader was present to supervise them. However, group members
were displeased with the close, autocratic style of leadership, and
feelings of hostility frequently arose.
– The performance of groups who were assigned democratic leaders
was almost as good, and these groups were characterized by positive
feelings rather than hostility.
– In addition, under the democratic style of leadership, group members
performed well even when the leader was absent.
– These characteristics of democratic leadership may partly explain why
the empowerment of employees is a popular trend in companies
today.

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Ohio State Studies

Developed and administered the Leader Behavior Description Questionnaire

(LBDQ)to employees
– Resulted in:
• Consideration: Extent to which a leader is sensitive to
subordinates, respects their ideas and feelings, and establishes
mutual trust
• Initiating structure: Extent to which a leader is task oriented and
directs subordinates’ work activities toward goal achievement

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Behavioral theories-Ohio State University Study

Initiating Structure
High Low

Higher performance, job Poor performance and negative

Consideration

satisfaction performance ratings

High

High absenteeism, turnover Poor performance, high

rate, more employee absenteeism, turnover rate high
grievances
Low

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
University of Michigan Studies

• 12 pairs of low performance group and high

performance group
• High performance group was determined by
productivity of the subordinate group.
• 24 superiors were interviewed
• 400 subordinates were given questionnaire” survey
of organization”
• Happened in prudential insurance company
• Constant: type of work, working conditions and work
methods

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
University of Michigan Studies

Employee-centered
• Leadership behavior that displays a focus on the human
needs of subordinates, facilitate positive interaction
among followers and seek to minimize conflict.

Job-centered

• Leadership behavior in which leaders direct activities

toward efficiency, cost cutting, and scheduling
• Dimensions
• Goal emphasis
• Work facilitation
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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Result

• Unlike the consideration and initiating structure styles defined by the Ohio
State studies, Michigan researchers considered employee-centered
leadership and job-centered leadership to be distinct styles in opposition
to one another. A leader is identifiable by behavior characteristic of one or
the other style but not both

• Group which showed high performance were having employee centered

leader compare to group that were lead by task oriented leader

• while leadership behavior was demonstrated to affect the performance

and satisfaction of subordinates, performance was also influenced by
other factors related to the situation within which leaders and
subordinates worked

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Managerial Grid Theory

Black & Mouton (University of Texas) proposed the two

dimensional leadership theory called as Leadership Grid
• Team Management (9,9) : Most effective style
• Country Club (1,9) : Emphasis is given to people
• Authority-Compliance (9,1) : Efficiency in operations is main focus
• Middle-of the- road (5,5) : Moderate concern for both
• Impoverished Management (1,1) : Little efforts to both. Absence of leadership
philosophy.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Blake and Mouton’s Managerial Grid

Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry
E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.

36 MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Managerial Grid’s features:

• Two predominant leadership behaviors are: Task Oriented &

People Oriented

• Will both kind of behaviors may present in same leader??

• Yes, according to Grid theory both can exists together.

• Best behavior : When both are high, means (9,9) team

management.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Exhibit 2.5 - Themes of Leader Behavior
Research

Sources: Based on Marilyn R. Zuckerman and Lewis J. Hatala, Incredibly American: Releasing the Heart of Quality (Milwaukee, WI: American Society for
Quality, 1992), pp. 141–142; and Mark O’Connell, Gary Yukl, and Thomas Taber, “Leader Behavior and LMX: A Constructive Replication,” Journal of
Managerial Psychology 27, no. 2 (2012), pp. 143–154

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 Outcome of behavioral studies
• All behaviours can be differentiated into 2”
people and task oriented
• Both style can exist in same person
Eg: eddy Cur/Tim cook (CEO) apple :icloud service

• Whether employee can change from one to

other- yes

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Back to case -

How would you characterize

behavioral leadership style of
Michael Collins ? Why?
 

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Query:

How many of you have

• Quick , easy, access to your boss, get along well, influence to get things
done, talk on personal level (not necessarily job), give opportunity, good
performance evaluations, give raises, perks in excess of minimum

• Seldom have direct contact, only when something goes wrong, only
professional lines?

What could be the reason?

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Evolution of the Dyadic Theory :Individualized
Leadership

• Notion that a leader develops a unique relationship with each group

member, determining:
– Leader's behavior toward the member
– Member's response to the leader

Dyadic
– Refers to the individualized relationship between a leader and each
follower in a work unit (power difference –hence vertical)
Dyadic theory
– Is an approach to leadership that attempts to explain why leaders vary
their behavior with different followers
Dyadic theorists focus on the development and effects of separate dyadic
relationships between leaders and followers

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Exhibit 2.6 - Stages of Development of
Individualized Leadership

Sources: Based on Fred Danereau, “A Dyadic Approach to Leadership: Creating and Nurturing This Approach Under Fire,” Leadership Quarterly
6, no. 4 (1995), pp. 479–490, and George B. Graen and Mary Uhl-Bien, “Relationship-Based Approach to Leadership: Development of Leader–
Member Exchange (LMX) Theory of Leadership over 25 Years: Applying a Multi-Level, Multi-Domain Approach,” Leadership Quarterly 6, no.
2 (1995), pp. 219–247

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Vertical Dyadic Linkage (VDL) Theory

Examines how leaders form one-on-one relationships with

followers, and how these often create in-groups and out-
groups within the leader’s work unit
In-group
– Includes followers with strong social ties to their leader in a supportive
relationship characterized by high mutual trust, respect, loyalty, and
influence
Out-group
– Influences followers with few or no social ties to their leader, in a
strictly task-centered relationship characterized by low exchange and
top-down influence

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
 Exhibit 2.7 - Leader Behavior Toward In-Group
versus Out-Group Members

Sources: Based on Jean François Manzoni and Jean-Louis Barsoux, “The Set-Up-to-Fail Syndrome,” Harvard Business Review (March–April 1988), pp. 110–113;
and Mark O’Donnell, Gary Yukl, and Thomas Taber, “Leader Behavior and LMX: A Constructive Replication,” Journal of Management Psychology 27, no. 2
(2012), pp. 143–154.

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Characteristics of In-Groups

• Participate in important decision making

• Are given added responsibility
• Have greater access to the leader
• Experience greater support and positive influence from the leader
• Reciprocity
• High exchange
• Granted special favors from the leader
• Mutual reinforcement based on common needs and interests
• More likely to share with own group members than with members of
other groups

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Characteristics of Out-Groups

• Are managed according to the employment contract requirements

• Receive little inspiration, encouragement, or recognition
• Do not experience positive relationships and influence

. 7–40
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Leader–Member Exchange (LMX) Theory

• Is the quality of the exchange relationship between an employee and his

or her superior
• Face-to-face leader–member interaction is critical in organizations
• Assumes leaders have limited amounts of social, personal, and
organizational resources, and tend to distribute them among followers
selectively
• Leaders do not interact with all followers equally, which ultimately results
in the formation of LMXs that vary in quality

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Leader–Member Exchange (LMX) Theory

• Deals with how leaders’ differentiated leadership influences member and

group behaviors
– Leaders form both high-quality social exchanges and low-quality
economic exchanges with their followers.
– The quality of the LMX affects employees’ work ethics, productivity,
satisfaction, and perceptions
– Followers in high quality relationships reciprocate their leader’s trust
and liking through “citizenship behaviors” and excellent performance

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
High-Quality LMX Relationships versus
Low-Quality LMX Relationships (benefits)
• High-quality LMX relationship characteristics:
– Better social support
– More resources
– More guidance for career development
– Greater follower input in decision making
– Greater negotiating latitude
• Low-quality LMX relationship characteristics:
– Less support
– More formal supervision
– Little or no involvement in decision making

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Factors That Influence LMX
Relationships
Leader–Follower
Leader–Follower
Perceptions
PerceptionsandandSelf-
Self-
Identities
Identities

LMX
LMX
Relationship
Relationship

Follower
FollowerBehavior
Behavior Situational
Situational
and
andAttributes
Attributes Factors
Factors

7–44
Factors that Determine LMX Quality

• Follower Attributes
Proactive followers:
• Show initiative even in areas outside their immediate
responsibility ,Possess a strong sense of commitment to work unit
goals ,Show a stronger sense of responsibility for unit success
• These follower attributes influence leaders to: Show support,
Delegate more, Engage in open communication

• -Leader–Follower Perceptions
• The follower is perceived to be competent and dependable
• The leader and follower hold similar values and attitudes

7–45
MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Situational Factors that Determine

Stage
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LMX QualityManagerial
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Width
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website for classroom use. 7–46

Developing High-Quality LMX Relationships

• Impression management : Is a follower’s effort to project a

favorable image in order to gain an immediate benefit or improve a long-
term relationship with the leader (feedback seeking behavior,
performance driven/ impression driven)

• Ingratiation : Is the effort to appear supportive, appreciative, and

respectful (behavioural conformity)
– Self-promotion
• Is the effort to appear competent and dependable

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Partnership Building

the third phase of research in this area focused on whether leaders could
develop positive relationships with all followers. Leaders strive to develop
a positive relationship with each subordinate
– The implications of this finding are that true performance and
productivity gains can be achieved by having the leader develop
positive relationships one on one with each subordinate.

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Back to case

– How might an understanding of individualized leadership theory be

useful to Collins with respect to his relationship with marketing versus
store personnel?

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MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Mark Zukerberg : Times magazine article

• very warm, quick smile, doesnot shy away from eye contact
• Best friends are his staff, there are no separate offices
• His desk is near the middle of the office within arm’s length of his most
seniors employees
• Said to be hands on type leader
• Debate is hallmark of staff meetings
• Employee describes him an intense listener
• He is often one of the last persons to leave the office

MBA ZG 514 – Leadership and Change Management BITS Pilani, Pilani Campus
Entrepreneurial Traits and Behaviors

Entrepreneurship
– Initiating a business venture, organizing the necessary resources, and
assuming the associated risks and rewards: strongly driven, Enthusiastic,
Driven by a vision

Leaders should be
– Persistent
– Independent
– Action oriented
– Drawn to new opportunities
– Innovative
– Creative
– Highly self-motivated

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 Self assessment exercise
follows for home work
BITS Pilani Thank you
Pilani Campus
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Results

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Results

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results

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