copyright 1998 prentice-hall, adapted by prof. dr. vom kolke 9-1 chapter 9 leadership

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke 9-1

Chapter 9

Leadership

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke

What is Leadership?

No straightforward definition of leadership in cross-cultural context– Not all cultures have the term leader (in Asian

countries its more a „coach“ of a group, in Germany the term is not politically correct)

– Different understanding and expectations for authority roles in different countries (depending on power distance)

– Countries like USA distinguish leadership roles (assistant vice president, vice president, executive vice president,

senior vice president, president) and attach a great deal of meaning to these titles


Definition of Leadership

Leadership is a process by which a person – exerts influence over other people– inspires, motivates and directs their

activities (to achieve group/ organizational goals)


Three cultural influences– National Culture – Political Culture– Organizational Culture

Culture and Leadership


Culture and Leadership National Culture (core values about

rights/ duties of citizens, constitute a worldview [e.g. American understanding of freedom])– Violating core values leads to loss of

leader‘s authority over subordinates (may even be removed from leadership position)

– Otherwise: values or employment laws like e.g. equal treatment of men and women are often violated in companies by sophisticated barriers


Political Culture– Political structures often reflect central

national cultural values– Values of the political system affect

organizational leadership Countries with democratic political values

prefer participative leadership in workplace Countries with autocratic political regimes (e.g.

in South America) prefer a nonparticipatory leadership style



Organizational Culture (corporate culture)– Managing organizational culture (creating,

maintaining or changing norms and values) is an important leadership contribution

– Corporate culture can place constraints to leaders and shape their behavior (e.g. resistance to organizational changes)

Leadership, Culture and Organizational Change: the example of DaimlerChrysler



Sources of PowerSources of PowerRewardRewardPowerPower

RewardRewardPowerPower

LegitimateLegitimatePowerPower

LegitimateLegitimatePowerPower CoerciveCoercive

PowerPower

CoerciveCoercivePowerPower

ExpertExpertPowerPower

ExpertExpertPowerPower ReferentReferent

PowerPower

ReferentReferentPowerPower

Enable managers to beEnable managers to beleaders & influenceleaders & influence

subordinates to subordinates to achieve goalsachieve goals

Enable managers to beEnable managers to beleaders & influenceleaders & influence

subordinates to subordinates to achieve goalsachieve goals


Power: The Key to Leadership Key component of effective leadership

is found in the power a leader has to affect other people‘s behavior – Position power

Authority by virtue of position in hierarchy (hiring employees, assigning projects to other workers, monitoring work [legitimate power])

Authority to give or withhold rewards (pay raises, bonuses, verbal praise [Reward power])

Authority to punish others (dismissal, reductions in pay,verbal reprimands [coercive power])


– Expert power based on special knowledge, skills, and expertise a leader posses

– Referent power based on personal characteristics of a leader (stems from coworkers/ subordinates respect, admiration and loyalty)

Power: The Key to Leadership


What Makes A Leader?

D. Goleman‘s Emotional Intelligence (EQ) Approach– IQ and technical skills are not irrelevant but

entry-level requirements for executive positions

– Emotional intelligence makes a person a leader and is much more important for excellent performance


Components of Emotional Intelligence– Self-Awareness

Ability to „know oneself“, i.e. to recognize and understand one‘s mood, emotions, drives and their effects on others

Hallmarks: self-confidence, realistic self-assessment, self-deprecating sense of humor



– Self-regulation Ability to control disruptive impulses and moods

(frees us from being prisoners of our feelings) Ability to suspend judgement (think before act) Hallmarks: trustworthiness and integrity,

comfort with ambiguity, openness to change

– Motivation Intrinsic motivation (work for reasons beyond

money, status), pursuing of goals with energy and persistence

Hallmarks: strong drive to achieve, optimism - even in the face of failure, organizational commitment



– Empathy Ability to understand the emotional makeup of

other people and skill to treat people according to their emotional reactions

Hallmarks: expertise in building and retaining talent, cross-cultural sensitivity, service to clients and customers

– Social Skills Proficiency in managing relationships and building

networks, ability to find common ground and build rapport

Hallmarks: effectiveness in leading change, persuasiveness, expertise in building and leading teams



McGregor‘s Theory X and Y– Leadership style is dominated by assumptions

leaders develop about work attitudes and behaviors

– Theory X People are seen to prefer to avoid hard work and

require constant direction and supervision (e.g. by means of „the carrot and stick“)

Managers as leaders try to maximize control over worker‘s behavior (by developing rules [SOP‘s] and a well defined system of rewards and punishments to be able to exert control)



– Theory Y Workers are seen as self-motivated and

capable of undertaking complex requiring little direct supervision

Limits of collaboration are not limits of human nature but of leaders inventiveness in realizing workers‘ potential

Managers as leaders should trust workers and provide opportunities for workers to flourish (create work settings that encourage initiative and self-direction)



– Japan has different work settings than USA: collective orientation towards work

– Theory Z tries to capture the advantages of the Japanese approach

Workers are guaranteed long-term employment (takes off the layoff-risk)

recognition of individual contributions is combined with group orientation (interpersonal skills that improve decision making or communication)

Requires a more flexible and change responsive organization



– Theory X and Y shouldn‘t be viewed as mutually exclusive but as complementary in explaining human behavior

– Theory Y leadership style is consistent with low power distance orientation

– In high power countries a participative leader may appear incompetent (leader is expected to lead by dominating behavior [e.g. exerting power])

– Not all societies value underlying assumptions of achievement and self-development



Fiedler‘s Contingency Model effective leadership is contingent on

both the characteristics of the leader and the situation.

Two basic leader styles – Relationship-oriented: concerned with

developing good interpersonal relations with subordinates

– Task-oriented: concerned that workers perform so the job gets done (performance

may even be measured on a weekly basis)


To measure leader style Fiedler let leaders rate coworkers with whom they could work least well (called Least-Preferred Coworker or LPC)– Relationship-oriented leaders tend to

describe the LPC in relatively positively terms (leaders are referred to as high LPC)

– Task-oriented leaders tend to describe the LPC in negative terms (leaders are referred to as low LPC)

Fiedler‘s Contingency Model


Situational characteristics that determine, how favorable a given situation is for leading – Leader-member relations (how much do workers like

and trust their leader) Good leader-member relationships are favorable for

leading – Task structure (extent to which workers tasks are clear-

cut) Clear issues make a situation favorable for leadership

– Position Power (amount of legitimate, reward, & coercive power in a leader position)

Strong positional power is favorable for exertion of leadership



SS WW SS WW SS WW SS WW

GOOD POORGOOD POOR

Leader-MemberRelations

TaskStructure

Kinds ofLeadershipSituations

PositionPower

VeryFavorable

VeryUnfavorable

I II III IV V VI VII VIII1

Relationship-oriented managers most effective in IV, V, VI, VII.Task-oriented managers most effective in I, II, III or VIII.

Situational characteristics can be combined to identify leadership situations for the two leadership styles


HIGH LO W HIGH LOW HIGH LO W HIGH LOW


Using Fiedler’s Model Leader style is a characteristic

managers cannot change. Thus, managers will be most effective when:

1. They are placed in leadership situations that suit their style

2. The situation can be changed to fit the manager


House’s Path-Goal ModelHouse’s Path-Goal Model Path-Goal is a contingency model since it

proposes the steps managers should take to motivate their workers.

Model suggests that effective leaders motivate workers to achieve by:1) Clearly determine the outcomes workers are

trying to achieved.2) Reward workers for high-performance and

attainment.3) Clarifying the paths to the attainment of the

goals.


Steps to Path-GoalSteps to Path-Goal1) Determine the outcomes your subordinates

are trying to obtain. (Can range from pay to job security or interesting work)

Once outcomes determined, manager needs to be sure they have the reward power to provide these.

2) Reward subordinates for high-performance and goal attainment with the desired outcomes.

3) Clarify the paths to goal attainment for workers, remove obstacles to performance, and express confidence in worker’s ability.


Motivating with Path-goalMotivating with Path-goal Path-goal identifies four behaviors leaders

can use:– set goals, assign tasks, show how to do

things. (Directive behaviors) – look out for the worker’s best interest.

(Supportive behavior)– give subordinates a say in matters that affect

them. (Participative behavior)– Setting very challenging goals, believing in

worker’s abilities. (Achievement-oriented behavior)

Which behavior should be used depends on the worker and the tasks.


Transformational Leadership Contemporary approaches to leadership

stress the ability to cope with change They emphasize vision and charisma of

leaders and their attempt to promote personal growth of subordinates to accomplish change


– Transformational Leadership Transformational leaders are charismatic and

have a vision of how good things can be.– They are excited and clearly communicate this to

subordinates

– Transformational leaders openly share information with workers.

Everyone is aware of problems and the need for change Empower workers to help with solutions.

– Transformational leaders engage in development of workers.

Manager works hard to help them build skills

Transformational Leadership


Charismatic LeadershipCharismatic and Noncharismatic Leaders Differ Significantly

Relation to status quo

Goal not too discrepant from status quo

Shared perspective and idealized vision makes him a likable/ honorable hero worthy of identification and imitation

Future goal

Likableness Shared perspective makes him/her likable

Essentially agrees with status quo and strives to maintain it

Idealized vision that is highly discrepant from status quo

Essentially opposed to status quo and strives to change it

Noncharismatic Leader Charismatic Leader


Trustworthiness Disinterested advocacy in persuasion attempts

Disinterested advocacy by incurring great personal risk and cost

Charismatic and Noncharismatic Leaders Differ Significantly

Charismatic Leadership


Behavior

Expertise Expert in using available means to achieve goals within the existing order

Conventional, conforming to existing norms

Expert in using unconventional means to transcend the existing order

Unconventional or counternormative


Environmental sensitivity

Low need for environmental sensitivity to maintain status quo

High need for environmental sensitivity for changing the status quo

Weak articulation of goals and motivation to lead

Articulation Strong articulation of future vision and motivation to lead

Power base Position power and personal power (based on reward, expertise, and liking for a friend who is a similar other)

Personal power (based on expertise, respect, and admiration for a unique hero)





Leader/follower relationship

Egalitarian, consensus seeking, or directiveNudges or orders people to share his/ her views

Elitist, entrepreneur, and exemplaryTransforms people to share the radical changes advocated





Women as LeadersWomen as Leaders The number of women managers is rising but

still relatively low in top levels Cultures vary in their encouragement of

women in authority positions Stereotypes suggest women are supportive

and concerned with interpersonal relations. Similarly, men are seen as task-focused.– Research indicates that actually there is no

gender-based difference in leadership effectiveness.

– However, women are seen to be more participative than men.


Women as Leaders Japan

– Women played a minor role in Japanese management until recently (traditional role [marry,raise a famility, work part-time later], nonworking wifes are status symbol)

– „Dual economy“ in respect to women in management position

Large-scale industrial and service sector dominated by men, small-scale personal service sector managed by women (children‘s clothing stores, real estate agencies, retail kimono stores)


Japan– Women are successful in subsidiaries of foreign

companies (differen view on gender equality)– Prospects of women in Japan are increasing

(more due to projected labor shortage [low birth rates] than cultural change)

Poland– Women were historically vastly

underrepresented (leaders were selected from pool of loyal (male) communists)

– Political changes end of the 80ies didn‘t improve womens‘ status because of the influence of the catholic church (want women to take traditional role as homemakers and mothers)

Women as Leaders


Tanzania – Political and legislative attempts to eliminate

discrimination against women in employment– Tanzanian culture treats female marriage

partners extremely unequal (men have totally control over wife‘s domestic and occupational roles)

– Working Women face sexual harassment in the workplace

– Successful women provoke rumorsf to have slept with a man in a powerful position

Women as Leaders


Convergence or Divergence?

The spread of leadership styles of multinational and global organizations

Resistance of national cultures to new styles of leadership


Implications for Managers

Understanding leadership important since all managers perform leadership functions

Need to assess other cultures to understand what can be changed and what is immutable

Charismatic or transformational leadership styles appropriate for large organizational change efforts

copyright 1998 prentice-hall, adapted by prof. dr. vom kolke 9-1 chapter 9 leadership

Documents

leadership slide

organizational leadership

leadership position

participative leadership

kolke power

national culture core

democratic political

organizational changes