Organizational BehaviorBUS-542

Instructor: Erlan Bakiev, Ph.D.

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Chapter 11

Leadership

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Essentials of Organizational Behavior, 11/e

Stephen P. Robbins & Timothy A. Judge

After studying this chapter, you should be able to:

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1. Define the leadership and contrast leadership and management.

2. Summarize the conclusions of trait theories of leadership.

3. Assess contingency theories of leadership by their level of support.

4. Compare and contrast charismatic leadership, transformational leadership, and authentic leadership.

5. Address challenges to the effectiveness of leadership.

6. Assess whether charismatic and transformational leadership generalize across cultures.

Leadership vs. Management

About coping with change.

Establishes direction with a vision.

Aligns resources and inspires workers to complete the vision and overcome hurdles.

About coping with complexity (Kotter, 1990)

Brings about order and consistency

Draws up plans, structures, and monitors results.

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Leadership Management

Leadership is the ability to influence a group toward the achievement of

a vision or a set of goals.

Traditional Theories of Leadership: Trait Theories11-5

Trait theory focuses on personal qualities and characteristics

Big Five Personality Framework Extraversion has strongest relation to leadership (Judge

et al., 2002,

Conscientiousness and Openness to Experience also strongly related to leadership

Agreeableness and Emotional Stability are not correlated with leadership

Emotional Intelligence is correlated with leadership, however, this link is under-investigated (Goleman, 2004)

Traditional Theories of Leadership: Behavioral Theories11-6

Behaviors can be taught – traits cannot

Leaders are trained – not born

Behavioral Theories: Ohio State Studies (Schriesheim et al., 1995; Judge et al., 2004)

Attempts to organize work, work

relationships, and goals

Concern for followers’ comfort, well-being,

status, and satisfaction

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Initiating

Structure

Considerati

on

Developed two categories of leadership behavior:

Behavioral Theories: University of Michigan Studies

Emphasize the technical or task aspects of the job: people are means to an

end

Emphasize interpersonal relations and accept individual differences

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Productio

nOriented

EmployeeOriented

Developed two dimensions of leadership behavior:

Contingency Theories

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Attempts to match leadership style with work context as one

leadership style does not work in every situation.

Fiedler Model (LPC)(Feiedler, 1967)

Leader-Member Exchange (LMX) Theory (Stilwell, 1993; Masterson et al., 2000)

Fiedler Leadership Model11-10

This model proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control.

Identifying Leadership Style: 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

Fiedler Model: Matching Leaders to Situations

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Either change leaders or the situation to improve effectiveness

Leader-Member Exchange (LMX) Theory

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Leaders treat followers differently In-group members:

Close to leader in attitude or personality

Have more of the leader’s attention Get special privileges Have higher performance ratings Lower turnover Greater satisfaction

Leader-Member Exchange (LMX) Model

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While the leader does the choosing, it is the followers’ characteristics that drive the decision

Charismatic Leadership11-14

Attributions of heroic leadership abilities when followers observe certain behaviors:

Vision Personal Risk-taking Sensitivity toward

Followers Extraordinary Behaviors

(Conger and Kanungo, 1998)

Charismatic Leaders: Born or Made?

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Charisma is partially attributed to genetics and partially to training and experience.

Charisma can be created by: Developing an aura of charisma (Richardson

and Thayer, 1993) Be optimistic

Be passionately enthusiastic

Commute with body, not just words

Drawing others in – inspire others Tapping into emotions – bring out the

potential in others

How Charismatic Leaders Influence Followers(Shamir et al., 1993) 11-16

Articulate an appealing vision Communicates a new set of

values Model behaviors for those

values Express dramatic behavior

Charisma and Situational Dependency11-17

Charisma strongly correlated to high performance and satisfaction (Hoogh et al., 2004)

Best used when:

Environment is uncertain or stressful (House, 1976; House and Aditya, 1997)

Ideology is involved (Pastor et al., 2007)

Most closely associated with upper level executives

People are most receptive to charisma when there is a crisis.

The Potential Dark Side of Charismatic Leadership

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Use organizational resources for personal benefit

Remake companies in their own image

Allow self-interest and personal goals to override organization’s goals (Tosi, 2004)

Transformational Leadership11-19

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

Full Range of Leadership Model11-20

Why Transformational Leadership Works

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Creativity Followers are encouraged to be more

innovative and creative (Ling et ai., 2008)

GoalsFollowers pursue more ambitious goals and have more personal commitment to them

(Colbert et al., 2008)

Vision Engenders commitment from followers and

greater sense of trust

Evaluation of Transformational Leadership11-22

Effectively used in various job levels and disparate occupations

Tends to be more effective in smaller companies (Ling et al., 2008)

Works better when the leader is closer to the followers

Transformational Leadership has positive job outcomes such as lower turnover and lower absenteeism (Hetland et al., 2007)

Transformational Vs. Charismatic Leadership

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Both positively related to motivation, satisfaction, performance, effectiveness, and profitability

Transformational leadership MAY be a broader concept than charisma

The two forms may be the same

Authentic Leadership: Ethics as the Basis for Leadership?

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Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly (Tan, 2006)

Create trust Encourage open

communication

Ethics and Leadership11-25

Ethics and Leadership intersect at many junctures.

Executives set the moral tone for an organization so they must set and adhere to high ethical values.

Leadership is not value free, and the means by which a leader achieves their goal must be framed by ethics.

Trust11-26

Taking Risks

Information Sharing

Trust

Challenges to the Leadership Construct

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Attribution Theory of Leadership (Meindl, 1993; Schyns et al., 2007) Performance outcomes are attributed to leaders

actions Appearance has more to do with leadership than

outcomes

Substitutes and Neutralizers Organizational variables can neutralize the leader’s

influence or act as substitutes for leadership Leader becomes irrelevant (Van Vugt and Spisak,

2008)

Online Leaders11-28

Networked communication is a powerful channel

Challenges include identification-based trust

Leadership can be effective in an online environment and many of the same theories apply.

Electronic communication and writing skills need to be an extension of interpersonal skills

Global Implications11-29

GLOBE Leadership Project Results:

Brazil – Leaders are participative and humane

France – Bureaucratic, task-oriented, and autocratic

Egypt – Participative but status-aware

China – Initiating structure and consideration important: status differences but participation valued

Charisma and transformational leadership important in all

Implications for Managers11-30

Leaders influence group performance Leadership success depends somewhat

on having “the right stuff” Leadership depends on the situation Transformational skills becoming more

important Managers must be authentic and

develop trust relationships with their followers

Select and train based on traits and qualities

Keep in Mind…11-31

Leaders can influence a group toward the achievement of goals

Best leaders are ethical and authentic in addition to being charismatic

In most cultures, charisma and vision are valued – although their means of expression may differ

Summary11-32

1. Defined the leadership and contrasted leadership and management.

2. Summarized the conclusions of trait and behavioral theories.

3. Assessed contingency theories of leadership by their level of support.

4. Compared and contrasted charismatic leadership, transformational leadership, and authentic leadership.

5. Addressed challenges to the effectiveness of leadership.

6. Assessed whether charismatic and transformational leadership generalized across cultures.