Leadership

Leadership
 What is it?
 Hard to define
 We know it when we see it

 General Definition
 Social influence in an organizational setting,
the effects of which are relevant to or have an
impact on the achievement of organizational
goals
Leader Effectiveness
 How can we tell a “good” leader from a “poor”
leader? (What results would we expect to see
from a “good” leader?)

 Performance (the job gets done)

 Motivation (followers are energized)
 Effort (followers try hard)
 Satisfaction (followers are happy)
Focus of Trait Approach
Personality
Leader
Assessments
 Focuses exclusively  Organizations use personality
on leader assessments to find “Right”
people
 What traits leaders  Assumption - will increase
exhibit organizational effectiveness
 Who has these traits  Specify characteristics/traits
for specific positions
 Personality assessment
measures for “fit”
Strengths
 Intuitively appealing  Highlights leadership component
in the leadership process
 Perception that leaders are
different in that they possess  Deeper level understanding of how
special traits leader/personality related to
leadership process
 People “need” to view
leaders as gifted  Provides benchmarks for what to
look for in a leader
 Credibility due to a century
of research support
 Criticisms
 Fails to delimit a  List of most important leadership
traits is highly subjective
definitive list of
 Much subjective experience &
leadership traits observations serve as basis for identified
leadership traits
 Endless lists have
emerged  Research fails to look at traits in
relationship to leadership outcomes
 Doesn’t take into
 Not useful for training &
account situational development
effects
 Leaders in one situation
may not be leaders in
another situation
 Application
 Provides direction as to which traits
are good to have if one aspires to a Leadership Traits
leadership position • Intelligence
 Through various tests and • Self-Confidence
• Determination
questionnaires, individuals can
• Integrity
determine whether they have the • Sociability
select leadership traits and can •Adaptability
pinpoint their strengths and
weaknesses
 Can be used by managers to assess
where they stand within their
organization and what is needed to
strengthen their position
 Style Approach Description
Perspective Definition

 Leader-focused  Comprised of Two

Kinds of Behaviors
perspective  Task behaviors
 Emphasis on  Facilitate goal

what leaders do accomplishment

and how they act  Relationship
behaviors
 Help subordinates

feel comfortable with

themselves, each
other, and the
situation
Style Approach
Focus Overall Scope

 Primarily a framework for  Offers a means of

assessing leadership in a
generally assessing the
broad way as behavior
with a task and behaviors of leaders
relationship dimension
 Strengths
 Style Approach marked a major shift in leadership
research from exclusively trait focused to include
behaviors and actions of leaders
 Broad range of studies on leadership style validates
and gives credibility to the basic tenets of the approach
 At conceptual level, a leader’s style is composed of two
major types of behaviors: task and relationship
 Based on style approach, leaders can assess their
actions and determine how to change to improve their
leadership style
Criticisms
 Research has not adequately demonstrated how
leaders’ styles are associated with performance
outcomes
 No universal style of leadership that could be
effective in most situations
 Implies that the most effective leadership style is
High-High style (i.e., high task/high relationship);
research finding support is limited
Leadership as Behavior
 100’s of studies examined the effects of leader
behavior on employees.
 Results were mixed, inconclusive (Bass, 1990).

 Fleishman and Harris (1962) found that initiating

structure was positively related to employee
grievances and turnover.
 House, Filley, and Kerr (1971) found evidence
suggesting initiating structure was positively related to
employee satisfaction.
Leadership as Behavior
 Fleischman & Harris 0.45
 The effects of IS on
0.40
grievances depends 0.35
on Consideration Low Conside ra tion
0.30
M e dium Conside ra tion

Grievance Rate
0.25 High Conside ra tion
 The effects of both
0.20
traits and behavior on
leader effectiveness 0.15
depends on the 0.10
situation 0.05
0.00
Low M edium High
Am ount of Structure
 Contingency Theory Approach
“Leaders match their style to the competence and commitment of
subordinates.”

Perspective Definition
 Contingency theory is a leader-  Effective leadership is
match theory (Fiedler &
Chemers, 1974) contingent on
 Tries to match leaders to matching a leader’s
appropriate situations style to the right
 Leader’s effectiveness depends setting
on how well the leader’s style
fits the context
 Fiedler et al.’s generalizations
about which styles of
leadership are best and worst
are empirically grounded
Leadership Styles
Definition Dimension Definitions
 Leadership styles  Task-motivated leaders
are described as: -Concerned primarily with
reaching a goal
 Task motivated  Relationship-motivated leaders -
 Relationship Concerned with developing
motivated close interpersonal
relationships

Leader Style Measurement Scale

Least Preferred Co-Worker (LPC) Scale
High = Relationship-motivated leader
Low = Task-motivated leader
Situational Variables

Situational Definition
Factors
LMR - Refers to the group
Leader-Member atmosphere and the degree of
Relations confidence, loyalty, and
attraction of followers for leader
Task Structure
TS - Concerns the degree to
Position Power which requirements of a task are
clear and spelled out
PP - Designates the amount of
Determine
Determine authority a leader has to reward
Favorableness
Favorableness or punish followers
ofSituations
of Situations
inOrganizations
in Organizations
 Contingency Model

Leader-
Member Good Poor
Relations

Task High Low High Low

Structure Structure Structure Structure Structure
Strong Weak Strong Weak Strong Weak Strong Weak
Position Power Power Power Power Power Power Power Power
Power
Preferred 1 2 3 4 5 6 7 8
Leadership Low LPCs Low
High LPCs
Style Middle LPCs LPCs
Strengths
 Empirical support. Contingency theory has been tested by many
researchers and found to be a valid and reliable approach to
explaining how to achieve effective leadership.
 Broadened understanding. Contingency theory has broadened the
scope of leadership understanding from a focus on a single, best
type of leadership (e.g., trait approach) to emphasizing the
importance of a leader’s style and the demands of different
situations.
 Predictive. Because Contingency theory is predictive, it provides
relevant information regarding the type of leadership that is most
likely to be effective in particular contexts.
 Not an all-or-nothing approach.
approach Contingency theory contends that
leaders should not expect to be effective in every situation; thus
companies should strive to place leaders in optimal situations
according to their leadership style.
 Leadership profiles. Contingency theory supplies data on
leadership styles that could be useful to organizations in developing
leadership profiles for human resource planning.
Criticisms
 Fails to fully explain why leaders with particular leadership styles are more
effective in some situations than others (Black Box problem)
problem
 Criticism of LPC scale validity as it does not correlate well with other standard
leadership measures

 Cumbersome to use in real-world settings

 Fails to adequately explain what should be done about a leader/situation

mismatch in the workplace
Path-Goal Theory Approach

Perspective Definition
 Goal - To enhance employee  Path-goal theory
performance and satisfaction by
focusing on employee motivation centers on how leaders
 Premise - Subordinates will be motivate subordinates
motivated if they believe: (a) they are to accomplish
capable of performing their work; (b) designated goals
that their efforts will be rewarded;
and (c) that the payoff will be
worthwhile
 Challenge - To use a leadership style
that best meets subordinates’
motivational needs
Conditions of Leadership Motivation

Leadership generates motivation when:

 It increases the number and kinds
of payoffs
 Path to the goal is clear and easily
traveled with coaching and
direction
 Obstacles and roadblocks are
removed
 The work itself is personally
satisfying
Path-Goal Theory Approach
Focus
 Path-goal theory is a complex
but also pragmatic approach
 Path-goal theory
 Leaders should choose a
leadership style that best fits
the needs of subordinates and
their work
Overall Scope
provides a set of
assumptions about how
different leadership
styles will interact with
subordinate
characteristics and the
work situation to affect
employee motivation
 Situational Theories of Leadership
Path-Goal Theory hypothesizes that effects of leader behavior on
employee performance and satisfaction depend on how leader
behavior affects employee motivation.
Directive - Providing guidelines on how to perform tasks..

Supportive - demonstrating concern for subordinates’ well being and must

be supportive of them as individuals.

Participative - leader must solicit ideas and suggestions from subordinates

and directly invite their participation.

Achievement - leader sets challenging goals, emphasizing improvements in

work performance, and encouraging high levels of goal attainment.

Effective leaders need all four of these styles since each produces different
results.
Strengths
 Useful theoretical framework. Path-goal theory is a useful theoretical
framework for understanding how various leadership behaviors affect
the satisfaction of subordinates and their work performance.
 Integrates motivation. Path-goal theory attempts to integrate the
motivation principles of expectancy theory into a theory of leadership.
 Practical model. Path-goal theory provides a practical model that
underscores and highlights the important ways leaders help
subordinates.
Criticisms
 Interpreting the meaning of the theory can be confusing because it is so
complex and incorporates so many different aspects of leadership;
consequently, it is difficult to implement.
 Empirical research studies have demonstrated only partial support for
path-goal theory.
 It fails to adequately explain the relationship between leadership behavior
and worker motivation.
 The path-goal theory approach treats leadership as a one-way event in
which the leader affects the subordinate.
Application
 PGT offers valuable insights that can be
applied in ongoing settings to improve
one’s leadership.
 Informs leaders about when to be
directive, supportive, participative, or
achievement oriented
 The principles of PGT can be employed
by leaders at all organizational levels
and for all types of tasks
Situational Theories of Leadership
 Vroom-Yetton Normative Model
 Leadership as decision making
 Decision-situation model

 Theorized that performance was affected by

the process leaders use to make decisions
Vroom-Yetton Normative Model
 Process used to make decision affects:
 Decision quality
 Decision acceptance

 The effectiveness of any decision making

process depends on several situational
factors
Decision Making Example
You are the head of a personnel department which reports to the
company president. The president has asked you to make
recommendations on how to change and update the performance
appraisal system. You are not sure about the approach to take.
Your specialty is selection and you desire more information on
performance appraisal. Fortunately, three members of your staff
are experienced with the various aspects of performance appraisal.
However, they rarely agree with each other on the best way to
achieve something when it comes to performance appraisal.
Fortunately, for this project, these employees will not implement
the recommendations.
Leadership as Power
 Agent exerts more  Sources of Power
influence on a target  Reward
than a target can resist.  Coercive
 Legitimate
 Possible outcomes of  Expert
using power  Referent
 Resistance
 Compliance
 Commitment
 Likely Outcomes of Using Power

Base of Type of Outcome

Power Commitment Compliance Resistance
Referent Likely Possible Possible
Expert Likely Possible Possible
Legitimate Possible Likely Possible
Reward Possible Likely Possible
Coercive Very Unlikely Possible Likely
LMX Theory Approach Description
Perspective Definition
 Development - LMX theory first  LMX theory
described by Dansereau, Graen,
& Haga (1975), Graen & Cashman conceptualizes
(1975), and Graen (1976) leadership as a
 Revisions - Theory has process centered in the
undergone a number of revisions interactions between
since its inception and continues
to be of interest to researchers leaders and followers.
 Assumption - LMX theory
challenges the assumption that
leaders treat followers in a
collective way.
 Later Studies
Initial research primarily addressed differences between in-groups and out-groups; later research addressed how LMX theory was related to organizational effectiveness

Researchers (Graen & Uhl-Bien, 1995) found that high-quality leader-member exchanges resulted in:

Less employee turnover

More positive performance evaluations

Higher frequency of promotions

Greater organizational commitment

More desirable work assignments

Better job attitudes

More attention and support from the leader

Greater participation

Faster career progress

 Phases in Leadership Making
Graen & Uhl-Bien (1995)

Phase 1 Phase 2 Phase 3

Stranger Acquaintance Partner

Roles Scripted Tested Negotiated

Influences One Way Mixed Reciprocal

Exchanges Low Quality Medium Quality High Quality

Interests Self Self / Other Group

TIME
Phase 1
Graen & Uhl-Bien (1995)

Phase 1
Stranger
• Interactions rule bound
• Rely on contractual relationships
• Relate to each other within prescribed
organizational roles
• Experience lower quality exchanges
• Subordinate motives directed
toward self-interest
Phase 2
Graen & Uhl-Bien (1995)

Phase 2
Acquaintance
• Offer by leader/subordinate for improved
career-oriented social exchanges
• Testing period of taking on new roles and
leader providing new challenges
• Shift from formalized interactions to
new ways of relating
• Quality of exchanges improve along with
greater trust and respect
• Less focus on self-interest, more on goals of
the group
Phase 3
Graen & Uhl-Bien (1995)

Phase 3
Mature Partnership
• Marked by high-quality LMX exchanges
• Experience high degree of mutual trust,
respect, and obligation toward one another
• Tested relationship that is dependable
• High degree of reciprocity between leader and
subordinate
• May depend on each other for favors and
special assistance
• Highly developed patterns of relating that
produce positive outcomes
LMX Theory Approach
Descriptive Prescriptive
 Essential to recognize existence of in-  Best understood within the
groups & out-groups Leadership Making Model
 Significant differences in how goals  Leader forms special
are accomplished using in-groups vs. relationship with each
out-groups subordinate
 Relevant differences in in-group vs.  Leader should offer each
out-group behaviors subordinate an opportunity
for new roles/responsibilities
 Leader should nurture high-
quality exchanges with all
subordinates
 Rather than concentrating on
differences, leader should
focus on ways to build trust
Strengths
 LMX theory validates our experience of how
people within organizations relate to each other
and the leader
 LMX theory is the only leadership approach that
makes the dyadic relationship the centerpiece
of the leadership process
 LMX theory directs our attention to the importance
of communication
 Solid research foundation on how the practice of
LMX theory is related to positive organizational
outcomes
Criticisms
 Inadvertently supports the development of privileged groups in the
workplace; appears unfair and discriminatory
 The basic theoretical ideas of LMX are not fully developed

 Because of various scales and levels of analysis,

analysis measurement of
leader-member exchanges is being questioned
 Application
 Applicable to all levels of management
and different types of organizations
 Directs managers to assess their
leadership from a relationship
perspective
 Sensitizes managers to how in-groups
and out-groups develop within their
work unit
 Can be used to explain how individuals
create leadership networks throughout
an organization
 Model of Transformational Leadership
Bass (1985)

Transformational Transactional Laissez-Faire

Leadership Leadership Leadership

TL motivates followers beyond the expected by:

raising consciousness about the value and importance of specific and idealized goals
❶
transcending self-interest for the good of the organization
❷
addressing higher-level needs
❸
 Transformational Leadership Factors
Factor 4
Individualized
Factor 6
Transformational

Consideration
Mgmt. by Exception

Lassiez-Faire
Transactional
Factor 3 Active & Passive
Intellectual Corrective Transactions Factor 7
Stimulation Laissez-Faire
Nontransactional
Factor 2 Factor 5
Inspirational Contingent Reward
Motivational Constructive
Transactions
Factor 1
Idealized Influence
Charisma Leaders who exhibit TL:
❶ have a strong set of values & ideals
❷ are effective in motivating followers to support
greater good over self-interest
 Transformational Leadership Factors
The 4 “I”s
Idealized
Influence
Describes leaders who act as strong role models for followers

Inspirational
Motivation
Leaders who communicate high expectations to followers, inspiring
them through motivation to commitment and engagement in the
shared vision of the organization
Intellectual
Stimulation
Stimulates followers to be creative and innovative; challenges
their own beliefs and values and those of leader and organization
Individualized
Consideration
Leaders who provide a supportive climate in which they listen carefully
to the needs of followers
 Transactional Leadership Factors

Contingent
Reward
The exchange process between leaders and followers in which effort by
followers is exchanged for specified rewards

Management by
Exception
Leadership that involves corrective criticism, negative feedback, and
negative reinforcement
• Two forms
• Active - Watches follower closely to identify mistakes/rule violations
• Passive - Intervenes only after standards have not been met or
problems have arisen
 Nonleadership Factor

Laissez-Faire

The absence of leadership. A hands-off, let-things-ride

approach. Refers to a leader who abdicates responsibility,
delays decisions, gives no feedback, and makes little effort
to help followers satisfy their needs.
Transformational Leadership Approach

Focus of
Transformational Overall Scope
Leaders
 TLs empower and nurture followers  Describes how leaders
 TLs stimulate change by becoming
strong role models for followers can initiate, develop, and
 TLs commonly create a vision carry out significant
 TLs act as change agents
changes in organizations
 TLs are social architects
Strengths
 Broadly researched. TL has been widely researched, including a large body of qualitative
research centering on prominent leaders and CEOs in major firms.
 Intuitive appeal. People are attracted to TL because it makes sense to them.
 Process-focused. TL treats leadership as a process occurring between followers and leaders.
 Expansive leadership view. TL provides a broader view of leadership that augments other
leadership models.
 Emphasizes follower. TL emphasizes followers’ needs, values, and morals.
 Effectiveness. Evidence supports that TL is an effective form of leadership.
Criticisms
 Lacks conceptual clarity
 Dimensions are not clearly delimited
 Parameters of TL overlap with similar conceptualizations of leadership

 Measurement questioned
 Validity of MLQ not fully established
 Some transformational factors are not unique solely to the transformational model

 TL treats leadership more as a personality trait or predisposition than a behavior that can be taught

 TL is elitist and antidemocratic

 Suffers from heroic leadership bias

 TL is based primarily on qualitative data

 Has the potential to be abused

 Application
 Provides a general way of thinking about
leadership that stresses ideals, inspiration,
innovations, and individual concerns
 Can be taught to individuals at all levels of
the organization
 Able to positively impact a firm’s
performance
 May be used as a tool in recruitment,
selection, promotion, and training
development
 Can be used to improve team development,
decision-making groups, quality initiatives,
and reorganizations
 The MLQ helps leaders to target areas of
leadership improvement