Essentials of Organizational Behavior
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After studying this chapter you should be able to:
Summarize the conclusions of trait theories of leadership.
Identify the central tenets and main limitations of behavioral theories.
Contrast contingency theories of leadership.
Describe the contemporary theories of leadership and their relationship to foundational theories.
Discuss the roles of leaders in creating ethical organizations.
Describe how leaders can have a positive impact on their organizations through building trust and mentoring.
Identify the challenges to our understanding of leadership.
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What Is Leadership?
Leadership: The ability to influence a group toward the achievement of a vision or a set of goals
Trait theories of leadership: focus on personal qualities and characteristics
Leadership emergence
Leadership effectiveness
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Leadership is the ability to influence a group toward the achievement of goals.
The trait theories of leadership focus on personal qualities like those in the Big Five and characteristics that predict two distinct outcomes: leadership emergence and leadership effectiveness.
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Trait Theories of Leadership
Two conclusions:
Traits can predict leadership
Traits do a better job predicting the emergence of leaders and the appearance of leadership than distinguishing between effective and ineffective leaders
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The fact that an individual exhibits the right traits and that others consider him a leader does not necessarily mean he will be an effective leader who is successful at getting the group to achieve its goals.
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Personality Traits and Leadership
Big Five Traits
Extraversion has strongest relation to leadership
Conscientiousness and openness to experience also strongly relate to leadership
Agreeableness and emotional stability are not correlated with leadership
Dark Side Traits
Normative scores on Machiavellianism, narcissism, and psychopathy are optimal
Emotional intelligence
EI contributes to emergence of leaders
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Some essential leadership traits include extraversion, conscientiousness, openness, and agreeableness. Research shows that the Dark Side personality traits of Machiavellianism, narcissism, and psychopathy are not all bad for leadership. Higher scores on Dark Side traits and emotional stability can contribute to the emergence of leadership. Finally, emotional intelligence or EI has been linked with leadership effectiveness, especially with regard to empathy, a core component of EI. Leaders with empathy are able to sense others’ needs, listen to their followers, and read the reactions of others.
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Behavioral Theories
Behavioral theories of leadership: we can determine leadership effectiveness by leader behavior, and perhaps train people to be leaders
The Ohio State Studies
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The behavioral theories of leadership focus on the premise that behaviors can be taught and traits cannot, so leaders are trained, not born.
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Ohio State Studies
Attempts to organize work, work relationships, and goals
Concern for followers’ comfort, well-being, status, and satisfaction
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A key study in the area of behavioral leadership advanced our understanding of the theory. The research was done at the Ohio State University. Researchers looked at important dimensions of leadership behavior and began with over 1,000 dimensions. In the end, the Ohio State studies were able to narrow it down to two dimensions – initiating structure and consideration.
Initiating structure is when the leader is able to define and structure their role and that of their employees to work toward the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader.
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Initiating Structure
Consideration
Cultural Differences
GLOBE Leadership Project Results:
Brazil – Leaders are participative and humane
France – Leaders are bureaucratic, task oriented, and autocratic
China – Initiating structure and consideration important: status differences but participation valued
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The GLOBE study suggests that there are differences across cultures in the preference for initiating structure and consideration.
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Contingency Theories
Fiedler leadership model: Effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control
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In this theory, Fielder is trying to match the leader to the context. He proposes that leadership style is fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit that style, you need to change leaders.
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Fiedler Leadership Model
Least-Preferred Co-worker (LPC) determines leadership style (fixed trait)
Relationship oriented
Task oriented
Match leader’s style with degree of situational control
Leader-member relations
Task structure
Position power
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Leadership style can be determined by taking the LPC questionnaire (least preferred co-worker).
After the leadership style is determined you can match the leader to the situation. There are three dimensions to finding a successful match. The first situational factor is the leader-member relationship; this ties back to our behavioral studies by looking at the degree of trust and respect employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards.
In Fiedler’s model, you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization.
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Matching Leaders to Situations
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This graph helps to visually determine the situational factors and what type of leader would succeed in this situation. There are eight possible situations in which leaders can find themselves. By matching their LPC score with these eight different situations a leader can see where they will be most effective. For example, categories four through six would be better suited to relationship-oriented leaders because Fielder proposes that they perform best in moderately favorable situations.
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Situational Leadership Theory
Situational leadership theory (SLT): successful leadership depends on selecting the right leadership style, contingent on the followers’ readiness to accomplish a task
Unable and unwilling
Unable but willing
Able but unwilling
Able and willing
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SLT acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation.
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Path–Goal Theory
Path–goal theory: it’s the leader’s job to provide followers with information, support, or other resources necessary to achieve goals
Directive leadership yields greater satisfaction when tasks are ambiguous or stressful
Supportive leadership results in high performance and satisfaction when tasks are structured
Directive leadership is perceived as redundant by employees with high ability or experience
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Effective leaders clarify followers’ paths to their work goals and make the journey easier by reducing roadblocks.
Directive or supportive leadership does matter to followers’ performance, and leaders need to be aware of their important facilitating role.
The effectiveness of leaders depends to a large degree on their followers.
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Leader-Participation Model
Leader-participation model: provides a set of rules to determine the form and amount of participative decision making in different situations
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The way the leader makes decisions is as important as what he or she decides. Leader behavior must adjust to reflect the task structure.
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Leader-Member Exchange
Leader-member exchange (LMX) theory: supports leaders’ creation of ingroups and outgroups
Subordinates with ingroup status will likely have higher performance ratings, less turnover, and greater job satisfaction
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LMX argues that leaders, because of time pressures, tend to establish special relationships with a small group of followers who then become their ingroup. In this capacity, they enjoy a disproportionate share of the leader’s attention, greater trust, and special privileges.
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LMX Theory
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Research shows that ingroup members have demographic, attitude, and personality characteristics similar to those of their leaders or a higher level of competence than outgroup members.
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Charismatic Leadership
Charismatic leadership theory: Attributions of heroic leadership abilities when followers observe certain behaviors
Vision and articulation
Personal risk taking
Sensitivity toward followers
Unconventional behaviors
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Charisma comes from the Greek word meaning “gift”. When talking about a charismatic leader, one refers to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority.
There are four key characteristics that are associated with a charismatic leader. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so, the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process, the leader may be engaging in behaviors that are perceived as counter to norms, thereby extraordinary.
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Charismatic Leaders: Born or Made?
Charisma is partially attributed to genetics and partially to training and experience
Developing an aura of charisma:
Be optimistic
Be passionately enthusiastic
Communicate with body, not just words
Draw others in – inspire others
Tap into emotions – bring out the potential in others
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The charismatic traits are often traits that a leader is born with, thus continuing the debate on whether leaders are born or developed.
In reality it is a mix of genetics, training, and experience. Charisma can be created. One way is to develop an aura of charisma by being optimistic, passionately enthusiastic, and to communicating with behaviors and words. A leader can also create charisma by drawing in others through inspiration, as well as by tapping into the emotions of individuals to bring out their potential.
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How Charismatic Leaders Influence Followers
Articulate an appealing vision
Communicate a new set of values
Model behaviors for those values
Express dramatic behavior
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Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First, the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next, the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leader’s excitement and commitment to the goal.
Next, the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They will choose behaviors that will help followers “catch” the emotions the leader is conveying and help achieve buy-in from the followers.
Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision, in order to, help followers “catch” the vision.
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Charisma and Situational Dependency
Charisma is strongly correlated to high performance and satisfaction
Best used when
Environment is uncertain or stressful
Ideology is involved
Most closely associated with upper-level executives
People are most receptive to charisma when there is a crisis
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Charismatic leaders have been shown to be effective but it often depends on the context. This leadership style works best in an environment where it is uncertain, stressful, and where there is some ideology involved.
It is more closely associated with upper-level executives and people are most receptive to charismatic actions when there is a crisis.
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The Dark Side of Charismatic Leadership
Some leaders:
Use organizational resources for personal benefit
Remake companies in their own image
Allow self-interest and personal goals to override organization’s goals
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There is a dark side to charismatic leadership if the leader misuses their skill set. In the past we have seen situations where leaders have abused company resources and used them for their own benefit. Some leaders with strong charisma have remade companies in their own image and left no plans for succession when they leave.
In many cases, the charismatic leader lets their own goals override those of the organization, thus creating a negative situation for the organization.
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Transactional and Transformational Leadership
Transactional leaders:
Motivate their followers in the direction of established goals by clarifying role and task requirements
Transformational leaders:
Inspire followers to transcend their own self-interests for the good of the organization
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Transactional leaders motivate their follower towards the goals set by clarifying their roles in the process and what they need to do to reach the goals set.
Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside.
These two approaches are not contradictory in nature; in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.
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Characteristics of Transactional and Transformational Leaders
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This exhibit shows characteristics of transactional and transformational leaders.
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Full Range of Leadership Model
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This exhibit shows the full range of the leadership model. The first three behaviors represent transactional approaches and begins with the Laissez-faire approach, which is the most passive. As a leader progresses on the scale, she moves toward more active behaviors. The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors, they become more effective.
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How Transformational Leadership Works
Organizations with transformational leaders have
Greater decentralization of responsibility
Managers willing to take risks
Compensation geared toward long-term results
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In organizations with transformational leaders, there is typically greater decentralization of responsibility, managers have a higher propensity to take risks, and compensation plans are geared toward long-term results. These organizations often have greater agreement among top managers about the organization’s direction.
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Evaluation of Transformational Leadership
Transformational leadership:
Is effectively used in various job levels and disparate occupations
Tends to be more effective in smaller companies
Works better when the leader directly interacts with followers
Can be learned
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Transformational leadership works in a variety of contexts but tends to be more effective in smaller companies. It does work better when the leader is more closely connected to the followers and can understand their situation. The link between transformational leadership and positive job outcomes is solid.
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Transformational versus Transactional Leadership
Transformational leadership is more strongly correlated with:
Lower turnover
Higher productivity
Lower employee stress and burnout
Higher employee satisfaction
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Research shows that transformational leadership results in many desirable outcomes. However, contingent reward leadership sometimes works as well as transformational leadership.
There are a lot of commonalities between transformational leadership and charismatic leadership, but in general, charismatic leadership focuses on how leaders communicate, while transformational leadership focuses on what is communicated.
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Authentic Leadership: Ethics and Trust
Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly
Create trust
Encourage open communication
People have faith in them
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