11-2 Leadership: What makes an Effective Leader Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational.

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Leadership: What makes an Effective Leader

Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinOrganizational Behavior, Core Concepts

11Organizational Behavior

core concepts

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Learning Objectives

• Discuss theories that look for ideal leadership traits and one best style of leadership

• Explain how leadership style interacts with situational control and other situational variables

• Describe the difference between transactional and transformational leadership

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Learning Objectives

• Identify leadership styles and traits that are most effective cross-culturally

• Describe the leader-member exchange (LMX) model of leadership

• Summarize the alternative views of shared leadership, servant-leadership, and Level 5 leadership

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What Does Leadership Involve?

• Leadership – influencing employees to voluntarily pursue

organizational goals

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Trait Theory

• Leader trait – personal characteristics that differentiate

leaders from followers.

• Leadership prototype – mental representations of the traits and

behaviors possessed by leaders.

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Gender and Leadership

• Men were seen as displaying more task leadership

• Women were seen as displaying more social leadership

• Women used a more democratic or participative style

• Men used a more autocratic and directive style than women

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Gender and Leadership

• Men and women were equally assertive

• Women executives, when rated by their peers, managers, and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria

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Key Positive Leadership Traits

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The Ohio State Studies

• Consideration– creating mutual respect and trust with

followers.

• Initiating structure– organizing and defining what group

members should be doing.

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The Leadership Grid

• Formed by the intersection of two dimensions: concern for production and concern for people

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The Leadership Grid Leadership Styles

• Impoverished management

• Country club management

• Authority-compliance

• Middle-of-the-road management

• Team management

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Behavioral Styles in Perspective

• Leader behaviors can be systematically improved and developed

• There is no one best style of leadership

• It is important to consider the difference between how frequently and how effectively managers exhibit various leader behaviors

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Situational Theories

• Situational theories – propose that leader styles should match the

situation at hand.

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Fiedler’s Contingency Model

The performance of a leader depends on two interrelated factors:

• The degree to which the situation gives the leader control and influence

• The leader’s basic motivation

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Question?

What refers to the amount of influence the leader has in his immediate work environment?

A. Contingency control

B. Situational control

C. Conditional influence

D. Position power

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Fiedler’s Contingency Model

• Situational control – refers to the amount of control and influence

the leader has in his immediate work environment

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Three Dimensions of Situational Control

• Leader-member relations – the extent to which the leader has the

support, loyalty, and trust of the work group

• Task structure – concerned with the amount of structure

contained within tasks performed by the work group

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Three Dimensions of Situational Control

• Position power – the degree to which the leader has formal

power to reward, punish, or otherwise obtain compliance from employees

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Representation of Fiedler’s Contingency Model

Figure 11-1

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Path-Goal Theory

• Describes how leadership effectiveness is influenced by the interaction between leadership behaviors and a variety of contingency factors

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Path-Goal Theory

• Contingency factors – variables that influence the appropriateness

of a leadership style

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A General Representation ofHouse’s Revised Path-Goal Theory

Figure 11-2

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Categories of Leader Behavior

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Transactional Leadership

• Transactional leadership – focuses on the clarifying employees’ roles

and providing rewards contingent on performance

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Transformational Leadership

• Transformational leadership – transforms employees to pursue

organizational goals over self-interests.

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Question?

Which transformational leader behavior encourages employees to question the status quo?

A. Inspirational motivation

B. Idealized influence

C. Individualized consideration

D. Intellectual stimulation

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Transformational Leader Behaviors• Inspirational motivation

– establishing an attractive vision of the future, the use of emotional arguments, and exhibition of optimism and enthusiasm

• Idealized influence – sacrificing for the good of the group, being a

role model, and displaying high ethical standards

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Transformational Leader Behaviors• Individualized consideration

– providing support, encouragement, empowerment, and coaching to employees

• Intellectual stimulation – behavior that encourages employees to

question the status quo and to seek innovative solutions to organizational problems

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A Transformational Model of Leadership

Figure 11-3

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International Leadership: Lessons from the GLOBE Project

• An attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

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The Leader-Member Exchange (LMX) Model of Leadership• Focuses on the quality of relationships

between managers and subordinates as opposed to the behaviors or traits of either leaders or followers

• Revolves around the development of dyadic relationships between managers and their direct reports

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The Leader-Member Exchange (LMX) Model of Leadership• in-group exchange

– a partnership characterized bymutual trust, respect and liking

• out-group exchange – a partnership characterized by

a lack of mutual trust, respect and liking

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Managerial Implications

• Leaders are encouraged to establish high-performance expectations for all of their direct reports

• Managers should be careful that they don’t create a homogeneous work environment

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Shared Leadership

• Shared leadership – simultaneous, ongoing, mutual influence

process in which people share responsibility for leading

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Servant Leadership

• Servant leadership – focuses on increasing services to others

rather than oneself

Read the Servant Leader newsletter

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Characteristics of the Servant-Leader

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The Level 5 Hierarchy

Figure 11-4