LEADERSHIP IN

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Chapter
Twelve
LEADERSHIP IN ORGANIZATIONS
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After reading this chapter you should be able to
1. Define leadership and explain how leading
differs from managing. 2. Describe the trait
approach to leadership, and identify what
distinguishes successful leaders from ordinary
people. 3. Describe various forms of
participa-tive and autocratic leader
behavior. 4. Distinguish the two basic forms of
leader behavior person-oriented behavior and
production-oriented behavior -- and explain how
grid training helps to develop both. 5. Explain
what the leader-member exchange (LMX) model and
the attributional approach to leadership in terms
of the relationships between leaders and
followers. .
6. Describe charismatic leadership and how it
compares with transformational leadership. 7.
Explain the contingency theories of leader
effectiveness. 8. Summarize the LPC contingency
theory and the situational leadership theory in
terms of the connection between between
leadership style and situational variables. 9.
Explain path-goal theory and normative decision
theory. 10. Describe the substitutes for
leadership approach and what it says about the
conditions when leaders are needed in the
workplace.
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The Nature of Leadership (Pp. 445-447)
Leadership - process whereby one individual uses
noncoercive techniques to influence other group
members toward attaining defined group or
organizational goals Leadership influence is
goal directed - exercise influence for a
purpose Leadership requires followers -
leadership is a two-way street
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The Nature of Leadership (cont.)
Leaders Versus Managers Leaders - primary
function is to create the essential purpose or
mission - cope with change Managers - primary
function is to implement the leaders vision -
cope with complexity - create plans and
monitor results
Figure 12.2 Distinguishing Leaders and Managers
Roles
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Trait Approach to Leadership (Pp. 447-449)
Great Person Theory - leaders possess special
traits which set them apart from others, and
these traits are responsible for their positions
of power and authority - leadership is based
on characteristics that remain stable over time
Characteristics of Great Leaders Leadership
motivation - desire to influence others,
especially toward attaining shared
goals Personalized power motivation - wish to
dominate others, reflected in an excessive
concern with status Socialized power motivation
- desire to cooperate with others, to work
with them rather than dominate or control them
Special abilities Cognitive ability -
intelligence Flexibility - ability to recognize
which actions are required and then to act
accordingly
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Leadership Behavior (Pp. 449-456)
Participative and Autocratic Leadership
Behaviors Autocratic-delegation continuum model
- describes how leaders allocate influence to
subordinates
Figure 12.3
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Leadership Behavior (cont.)
Participative and Autocratic Leadership Behaviors
(cont.)
Two-dimensional model of subordinate
participation - describes the nature of how
leaders influence followers Autocratic-democratic
dimension - characterizes the extent to
which leaders permit subordinates to take part
in decisions Permissive-directive dimension -
characterizes the extent to which leaders
direct the activities of subordinates and tell
them how to perform their jobs - combining
the two dimensions yields four possible patterns
of leader behavior - no single pattern is
best in all circumstances
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Table 12.2 Two-Dimensional Model of Subordinate
Participation
Are subordinates permitted to participate
in making decisions? Are subordinates told
exactly how Yes No to do their jobs?
(DEMOCRATIC) (AUTOCRATIC)
Yes (directive) Directive democrat Directive
autocrat (makes decisions (makes
decisions participatively closely unilaterally
closely supervises subordinates) supervises
subordinates) No (permissive) Permissive
democrat Permissive autocrat (makes
decisions (makes decisions participatively
gives unilaterally gives subordinates latitude
in subordinates latitude in carrying out their
work) carrying out their work)
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Leadership Behavior (cont.)
Low concern for production and High concern for
people
High concern for production and High concern
for people
Figure 12.5
High concern for production and Low concern for
people
Low concern for production and Low concern for
people
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Leadership Behavior (cont.)
Grid Training - a multi-step process to develop
concern for people and for production Grid
seminar - used to determine an individuals
leadership style Organization-wide training
to - help people interact more effectively -
identify extent to which organization is meeting
its strategic goals Plans made to meet
strategic goals Plans are implemented Progress
toward meeting goals is assessed continuously
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Leaders and Followers (Pp. 456-459)
Leader-Member Exchange Model (LMX) - leaders form
different relations with various subordinates
and the nature of such dyadic exchanges can
affect subordinates performance and
satisfaction In-group - favored group of
subordinates - receive inflated performance
ratings, have positive job attitudes, and
less likely to resign from their jobs Out-group
- subordinates disfavored by leaders
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Leaders and Followers (cont.)
Attribution Approach - focuses on leaders
attributions of followers performance -- i.e.,
on their perceptions of its underlying causes
External causes (e.g., poor facilities)
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Change-Oriented Leadership Future Visions (Pp.
459-463)
Charismatic Leadership - exert especially
powerful effects on followers by virtue of their
commanding confidence and clearly articulated
visions
Qualities of Charismatic leaders Self-confidence
- sure of their ability and judgment A vision -
proposes a state of affairs that improves the
status quo Extraordinary behavior - are
unconventional - quirky ways elicit admiration
when successful Recognized as agents of change -
threaten status quo Environmental sensitivity -
highly realistic about constraints imposed on
them and the resources required to change things
Reactions to Charismatic Leaders Abnormally high
performance levels Devoted, loyal, and reverent
followers Enthusiasm for leaders ideas
Effects of Charismatic Leaders - are not
necessarily virtuous people - maybe a liability
under everyday conditions - engender polarized
reactions, i.e., highly positive or highly
negative
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Change-Oriented Leadership Future Visions (cont.)
Transformational Leadership - leaders use their
charisma to transform and revitalize their
organizations
Characteristics of Transformational
Leaders Charisma - strong vision and sense of
mission for the organization Intellectual
stimulation - help followers to recognize
problems and solutions Individualized
consideration - give followers the support,
attention, and encouragement needed to perform
well Inspirational motivation - communicate the
importance of the organizations mission and
rely on symbols to focus their efforts
Effects of Transformational Leadership - elevate
followers to do their own thing - charismatic
leaders may keep followers weak and dependent -
tend to be very effective in making their
organizations successful - transformational
leaders recognized as good performers and
highly promotable
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Contingency Theories of Leader Effectiveness
(Pp. 463-476)
Contingency Theories of Leadership - recognize
that certain leadership styles are more
effective in some situations than others
LPC Contingency Theory - assumes that leaders
contribution to successful group performance is
determined by her/his own traits and by
the characteristics of the situation LPC -
esteem (liking) for the least preferred
coworker - is a stable (i.e., does not change)
personality trait Low LPC leaders - primarily
concerned with attaining successful task
performance High LPC leaders - primarily
concerned with establishing good relations
with subordinates
- situational characteristics that determine
leaders control Leader-member relations Task
structure Position power
Leader match - must match leaders to situations
in which they can be effective
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Figure 12.11 LPC Contingency Theory
High
Leader Effectiveness (as measured by group
performance)
Low
High
Moderate
Situational Control
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Contingency Theories of Leader Effectiveness
(cont.)
Situational Leadership Theory - the most
effective leadership style depends on the extent
to which followers require guidance, direction,
and emotional support (i.e., the readiness of
the followers to do the job)
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Contingency Theories of Leader Effectiveness
(cont.)
Path-Goal Theory - subordinates are motivated by
a leader only to the extent they perceive this
individual as helping them to attain valued
goals - effective leadership determined by
complex interaction of leader behaviors,
subordinate characteristics, and aspects of
the work environment
Figure 12.14
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Contingency Theories of Leader Effectiveness
(cont.)
Normative Decision Theory - focuses primarily on
strategies for choosing the most effective
approach to decision making - best approach
depends on Quality of the decision - extent to
which it will affect important group
processes Acceptance of the decision - degree
of commitment among subordinates needed for
its implementation
- answering a set of diagnostic questions about
the decision-making situations eventuates in
recommending one or more decision- making
strategies AI - leader makes decision
unilaterally using available information AII
- leader obtains necessary information and then
makes the decision unilaterally CI - leader
shares the problem with subordinates
individually and then makes the decision
unilaterally CII - leader shares the problem
with the group but then makes the decision
unilaterally GII - decision made after reaching
consensus with subordinates
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Figure 12.15
A B C
D E F
G
Yes
AI, AII, CI CII, GII
No
GII
AI, AII, CI, CII, GII
AI, AII, CI, CII
GII
CII
CI, CII
AII, CI, CII
AII, CI, CII, GII
CII
CI, GII
CII
CII
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Contingency Theories of Leader Effectiveness
(cont.)
Substitutes for Leadership - high skill among
subordinates or certain features of technology
and organizational structure sometimes substitute
for leadership, thus rendering a leaders
guidance or influence superfluous Neutralizers -
factors that make it impossible for leaders to
have an effect on subordinates Substitutes -
factors that make a leaders influence unnecessary
Romanticizing Leadership - tendency to perceive
management as more important and closely linked
to performance than it actually is
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Figure 12.16 Overestimating the Importance of
Leadership
(high)
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Favorability of Ratings (high profitability, low
risk) (Range 0 - 10)
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5
(low)
Management Employees Market
Government
Supposed Source of Companys Success
Profitability
Risk