Chapter Fourteen

Leadership
In-class exercise
 When you hear the word leader, who comes
to mind?
 When asked why, what verb dominates your
explanation? For example, this leader
 Accomplished ___
 Was able to ____
 Did ___
 Etc.
 Chapter Fourteen 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
Chapter Fourteen 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
 Trait Theory

Leadership Traits:
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
- leadership prototype: people tend to perceive that someone is a
leader when he or she exhibits traits associated with intelligence,
masculinity, and dominance
- leadership prototypes culturally based
- credible leaders are honest, forward-looking, inspiring, and
competent
 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
 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 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.
 Representation of Fiedler’s Contingency
Model
Situational High Control Moderate Low Control
Control Situations Control Situations Situations

Leader-member Good Good Good Good Poor Poor Poor Poor

relations

Task Structure High High Low Low High High Low Low

Position Power Strong Weak Strong Weak Strong Weak Strong Weak

Situation I II III IV V VI VII VIII

Optimal
Leadership Task Motivated Relationship Task
Style Leadership Motivated Motivated
Leadership Leadership
 House’s Path-Goal Theory
Employee Characteristics
- Locus of control
- Task ability
- Need for achievement
- Experience
- Need for clarity

Leader Behavior
- Path-goal clarifying Leaderhip Effectivenes
- Achievement oriented
- Work facilitation - Employee motivation
- Supportive - Employee satisfaction
- Interaction facilitation -Employee performance
(refer to p 355 for rest of revision) - Acceptance of leader
-Work unit performance

Environmental Factors
- Task structure
- Work group dynamics
Figure 14-3
Hersey and Blanchard’s
Situational Leadership Theory
Leader Behavior
High
Participating Selling
S3 S2
Relationship Behavior
(supportive behavior)

Share ideas and Explain decisions and

facilitate in provide opportunity for
decision making clarification

Delegating Telling
S4 S1
Turn over Provide specific
responsibility for instructions and closely
decisions and supervise performance
implementation
Low
Low Task Behavior High

Follower Readiness
High Moderate Low
R4 R3 R2 R1

Follower-Directed Leader-Directed
 Skills and Best Practices: Tips for Improving
Leader Effectiveness
Behavior Recommended Behaviors
Intensely listen to what others have to say.
Listen
Determine the true cause of performance
problems.
Think through problems from all perspectives. Do
Examine
not play favorites and find solutions that benefit
everyone involved.
Assist Help others to learn from mistakes and errors.
Explain the rationale for decisions and implement
Develop fair policies and procedures.
Provide employees with the resources needed to
Encourage
do a job. Gently push people to advance into
more demanding roles.
Praise people for their good work. Focus on the
Recognize
positive whenever possible.

Source: “CEO’s Need to Listen, Examine, Assist,” The Arizona Republic, April 22, 2001, p D2.
 Transactional versus
Transformational 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
 Transactional versus Transformational
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 and Exercise: Should a leader
be both transactional and charismatic? In what situations
would it be important that transactional leadership dominate?
Charismatic?
 Transformational Model of Leadership
Individual and Effects on
Leader
Organizational followers and Outcomes
behavior
Characteristics work groups
• Traits •Leader establishes a •Increased intrinsic •Personal
vision motivation, commitment
• Organizational to leader and
achievement
Culture vision
orientation, and goal
pursuit
 Charismatic Model of Leadership (cont)
Individual and Effects on
Leader
Organizational followers and Outcomes
behavior
Characteristics work groups
• Traits •Leader establishes •Increased •Self-sacrificial
high performance identification with the behavior
• Organizational expectations and leader and the
Culture displays confidence collective interests of
in him/herself and organizational
the collective ability members
to realize the vision
•Increased cohesion •Organizational
•Leader models the among workgroup commitment
desired values, members
traits, beliefs, and •Task
•Increased self- meaningfulness
behaviors needed to
esteem, self-efficacy, and satisfaction
realize the vision
and intrinsic interests
in goal
accomplishment •Increased
•Increased role individual
modeling of group, and
charismatic leadership organizational
performance
 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
 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.
 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.
 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 short-
term, 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.
 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 ofbeyond 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.
Leadership: Organizational
Perspective
 From The Ropes to Skip and the Ropes to
Know, Ritti and Levy, 7th edition, Wiley
 We have a fascination with “leaders”.
 Do times make the leader or is a leader born?
 What do we know?
 Leadership in organizations is “enacted”
 Management efficacy or the capacity to produce
results attributed to leaders
Leadership: Organizational
Perspective
 Organizations provide a cultural context
which provides a notion of what an effective
leader is
 The organization must perform
 Leader must play the role
 Communication is crucial
 One needs to convince people
 Must be seen as true
 And relate to existing organizational culture