Matching leadership styles with employment modes

• 1. Wei Liu, David P. Lepak, Riki Takeuchi, Henry P. Sims, Jr.Prepared By Burcu Tanriverdi Mech. Eng., M.B.A.4/4/2013

2. Introduction Approaches to Leadership About Employment Relationships Strategic Value and Uniqueness of skills Leadership Styles Leadership Demands Discussion Summary Future Researches Conclusion 4/4/2013 3. Inany given work environment, there are different groups of employees. Different groups of employees, in turn, require different methods of human resources management in order to create an efficient and effective workplace. The leadership plays a critical role on this effective management. 4/4/2013 4. Basedon knowledge, skills, abilities, and expertise, the contributions that employees offer to a firms success differs. Therefore, managers may use different human resource management practices in the workplace. Thispaper explores different leadership styles that can potentially be implemented by managers in order to increase and improve employee performance.4/4/2013 5. 1 LEADERLEADERSHIPRELATIONSHIP3BETWEEN TWO 2FOLLOWER Leadership effectiveness, degree to which the leaderefficiently motivates employees to accomplishorganizations tasks and fulfill the expectations of theemployees and the organization.4/4/2013 6. LeastPreferred Coworker(LPC)Contingency Theory Path-Goal Theory Leadership Substitute Theory Normative Decision Theory Multiple Linkage Model Leader-Member Exchange(LMX) Theory Situational Leadership Theory4/4/2013 7. Fiedler identified the a LPC scoring forleaders by asking them first to think of aperson with which they worked that theywould like least to work with, and scorethem with positive &negative factors.A high LPC leader generally scores theother person as positive and a low LPCleader scores them as negative.4/4/2013 8. High LPC leaders tend to have close and positive relationships and act in a supportive way. Low LPC leaders put the task first and will turn to relationships only when they are satisfied with how the work is going. Leader effectiveness depends on the leader as well as the situation. A favorable situation and work environment will make way for effective leadership. 4/4/2013 9. Leaders, to be effective, engage in behaviors that complement subordinates environment and abilities in a manner that compensates for deficiencies and is instrumental to subordinates satisfaction and individual and work unit performance. 4/4/2013 10. leaderThe theorys a strongRelationshipbehaviors focus empiricalbetweensubordinates supportsatisfaction & performance The substitutes for leadership theory suggests that characteristics of the organization, the task, and subordinates may substitute for or negate the effects of leadership, thus weakening observed relationships between leader behaviors and important organizational outcomes.4/4/2013 11. Leaders are more effective if they makedecisions that are tailored to a specificsituation (similar to contingency model) This model identifies five styles along acontinuum ranging from autocratic toconsultative to group-based. 4/4/2013 12. The leader influences variables to make the situation more favorable, to develop subordinates to improve performance of team. Performance of a work unit depends on multiple variables; subordinate effort & ability, organization of work (task structure), teamwork & cooperation, availability of resources etc 4/4/2013 13. Leadersdont typically interact with all employees in the same way Describeshow leaders in groups maintain their position through a series of tacit exchange agreements with their members. Three stages of the LMX process are,Role taking Role making- Routinization 4/4/2013 14. Leaders adjust their relationships with followers to increase likelihood of success Modelrests on two fundamental concepts; leadership style(telling, selling, participating, delegatin g) and the individual or groups maturity level(from M1 low-to M4 high). 4/4/2013 15. Rousseaus(1995) four different types ofemployment relationships based on twodimensions: Time frame of the relationship Short term Long term Embeddedness in the organization Internalization Externalization 4/4/2013 16. Tsuis(1997) Nature of Employee-Organization relationship categorized intofour approaches: Long-term balanced Short-term balanced Underinvestment Overinvestment 4/4/2013 17. Lepak& Snells (2002) with Rousseau& Tsuis frameworkHuman resources differ in strategic value and uniqueness of skills: Contract jobs: Acquisition/Job-based approach: Alliance/partnership: Internal development/Knowledge-based employment:4/4/2013 18. Contract jobs: Usually short-term and make little contribution to competitive positions and involve limited organizational involvement (i.e. administrative staff, janitors, low-level clerical workers, assemblers etc). 4/4/2013 19. Job-based approach: Hiring people with valuable skills without having to invest heavily in training.(i.e. administrative staff, sales personnel, engineers, customer service agents etc.)4/4/2013 20. Alliance/partnership: Human capital that is unique to a firm but doesnt add high strategic value to firm (i.e. consultants, software engineers) 4/4/2013 21. Knowledge-basedemployment: Firms tend to develop employees with valuable skills internally to capitalize on investments over time and invest in employee training and development of employees.(i.e. mechanical engineers, r & d employees, middle management etc.)4/4/2013 22. F HIGH Employment Mode: Employment Mode:Alliance /PartnershipInternal Development/ Thisis anKnowledge Based Uniqueness of human capital Leadership Style: integrative TransformationalLeadership Style: Empowering typology of employmentEmployment Mode:Employment Mode: Contracting Acquisition/Job- modes and Based Leadership Style: leadershipDirective Leadership Style: style fit.TransactionalLOW Value of human capital HIGH4/4/2013 23. Directive : As the first type, directive leaders try to establish followers as compliant subordinates by relying on such behaviors as command and direction, assigned goals, and punishments. Followers rarely allowed to participate in decision-making process (most effective for contract employment)4/4/2013 24. Transactional: Use of economic and social rewards depending on the accomplishment. setting goals, linking performance with rewards, and providing feedback (most effective for job-based employment)4/4/2013 25. Transformational: Stimulating followers to transcend their own self-interests for a larger collective purpose, mission or vision and concentrate on long-term goals, foster trust and commitment(most effective for alliance/partnership employment) 4/4/2013 26. Empowering: Followers targeted to develop own self control, be a part of decision making process. Leader should encourage self discipline, enjoyment, and motivation at work (most effective for knowledge-based employment)4/4/2013 27. ContractAcquisition/Job- BasedAlliance/InternalModeSample Jobs Emp.PartnershipDev/Knowledge- BasedAdministrativeAccountants, graphicSoftware engineers,Artists, analysts,Snell 1999)positions, technicaldesigners, HR psychologists, design eng, mech.(Lepak&jobs, low level clerical, professionals, lawyers, architectural services eng, middlesupport staff,trainers.managementprogrammersTemporary Exchange betweenAccomplish commonInternally valuable andjobs/specific tasks,valuable skills/knowledge goals throughfirm specific hr , obtaingeneral skills, costand market based rewards, cooperation, mutualhigh commitment andLead. Leadership demands Underlyingbenefits, flexibility,immediately perform tasks,benefits, capitalize long term relationship, objectivesshort- term focus requiring expertise, lowthe other partysunique competitivecommitmentspecializedadv.knowledge or skillProvide specificEnsure performance qualityVision in theInvestment in internalinstructions, ensureto attain company goals,necessity of alliance, development, entitlecompliance, provide save investment in training utilize valuable HR, employees with morejob based rewards, no and development, providebuild mutual trust,autonomy,emotional attachmentappropriate rewards,ensure relatively high participative decisionor long termmaintain balanced commitment to themaking, encouragecommitmentexchange relationship alliance creativityDirective Transactional Transformational Empoweringstyle 4/4/2013 28. Two general assumptions of arguments; Different employment modes are associated with different underlying objectives and psychological obligations between employees and organizations(Lepak & Snell 1999) Leadership styles that are more consistent with these characteristics of each employment mode are likely to be most effective. 4/4/2013 29. A Leadership Concept is derived fromhistorical leadership and motivationliterature and consists of these four styles;directive, transactional, transformational,empowering. Integration of these leadership styles withthe classification of employment modes todevelop this theory.4/4/2013 30. Encouragingthe researches to empirically examine the implications related to the fit(or misfit)between employed lead styles and HR practices for different groups of workers.( Focused on Role of leadership) Integrating the early leadership theories w. management of different employment groups. (Focused on Role of employment groups) 4/4/2013 31. Combiningthe multiple leadership styles is also possible for certain employment groups. (i.e. transformational+ transactional leadership for alliances, when the firm w. cost- leadership strategy) Reactionof the followers when leaders adopt multiple styles for different employee groups of same organization. 4/4/2013 32. Opens the door to such utilization by illustrating how leaders should vary their behaviors according to the nature of the employment mode. Highlightingthe relationship between leadership and employment with some contextual factors and leadership characteristics. (Such as skills, personality traits etc.) 4/4/2013 33. This articles scope is, to explore all the iterations of potentiallyimportant factors, to propose a typology which provides auseful starting point for researchintegrating the leadership of employeegroups with manner by which they aremanaged.4/4/2013