What is Leadership? Organizational Leadership An interpersonal process that involves attempts to influence other people in attaining organizational goals.

What is Leadership?

Organizational Leadership

• An interpersonal process that involves attempts to influence other people in attaining organizational goals

Leadership behavior:

• Can be shown by anyone

• Is expected of most managers

• Is part of effective management

What is Leadership?

Effective leadership

• Influence that assists an organization to meet its goals and perform successfully

Effective leaders:

• Enable people to accomplish more than if there had been no such leadership

• Unlock other people’s potential

Leading and Managing: The Same or Different?

• Managing ought to involve most of the activities thought of as leading

• Organizations need their managers to incorporate leadership roles into their behavior

Managers

Adapted from Exhibit 9.1

LeadersLeaders

and Managers

Does Leadership Differ Across National Cultures?

Adapted from Exhibit 9.2

• Some leader attributes are universally viewed as being either positive or negative

• Some leader attributes are viewed as positive or negative depending on the culture

• No best way to lead

• Must take into account the characteristics of the leader, followers, and situation

Leadership and Power

Power• The capacity or ability to influencePower can:• Lead to greater capacity to influence• Be used to overcome resistance• Be abused and lead to undesirable

consequences• Produce positive outcomes if used skillfully

Types of Power

Legitimate—How much authority does the organization give to your position?Legitimate—How much authority does the organization give to your position?

Reward—Are you able to give others the rewards they want?Reward—Are you able to give others the rewards they want?

Coercive—Are you able to punish others or withhold rewards?Coercive—Are you able to punish others or withhold rewards?

Expert—Do you have knowledge that others need?Expert—Do you have knowledge that others need?

Referent—Do others respect you and want to be like you?Referent—Do others respect you and want to be like you?

PositionPower

PositionPower

PersonalPower

PersonalPower

Adapted from Exhibit 9.3

Four Key Issues in Using Power

How much power should be used?

How can powerbe put to use?

Which types of power should be used?

Should powerbe shared?

The Leadership Process and the Locus of Leadership

Three leadership variables:

• The leader• The situation• The followers

Locus of leadership:• Where the three

variables intersect

LeaderLeader

SituationSituationFollowersFollowers

Locus ofLeadership

Traits of Effective Leadership

DriveAchievement, ambition,

energy, tenacity, initiative

DriveAchievement, ambition,

energy, tenacity, initiative

Emotional maturityEven tempered, calm under

stress, unself-centered, nondefensive

Emotional maturityEven tempered, calm under

stress, unself-centered, nondefensive

Self-confidenceSet high goals for self and others, optimistic about overcoming obstacles

(if taken to extreme, can lead to arrogance and sense of infallibility)

Self-confidenceSet high goals for self and others, optimistic about overcoming obstacles

(if taken to extreme, can lead to arrogance and sense of infallibility)

Motivation to LeadDesire to influence others, comfortable

using power

Motivation to LeadDesire to influence others, comfortable

using power

Honesty and IntegrityTrustworthy, open,

forthright

Honesty and IntegrityTrustworthy, open,

forthrightLeaderLeader

Adapted from Exhibit 9.7

Charismatic Leadership

Charismatic leadership• Is a strong form of referent power• Is based on individual inspirational qualities

rather than formal power• Generates followers who identify with charismatic

leaders because of these exceptional qualities• Is rare; very few people are considered truly

“charismatic”

Leaders’ Skills

TECHNICAL SKILLSSpecialized knowledgeTECHNICAL SKILLSSpecialized knowledge

INTERPERSONAL SKILLSSensitivity, persuasiveness, empathyINTERPERSONAL SKILLSSensitivity, persuasiveness, empathy

CONCEPTUAL SKILLSLogical reasoning, judgment, analytical abilities

CONCEPTUAL SKILLSLogical reasoning, judgment, analytical abilities

EMOTIONAL INTELLIGENCESelf-awareness, self-regulation, motivation, empathy and social skill

EMOTIONAL INTELLIGENCESelf-awareness, self-regulation, motivation, empathy and social skill

SOCIAL INTELLIGENCEAbility to “read” other peopleSOCIAL INTELLIGENCEAbility to “read” other people

Adapted from Exhibit 9.9

Leaders’ Behaviors

Task Behaviors • Specifies roles and

tasks• Schedules work• Sets performance

standards• Develops procedures

People Behaviors • Is friendly and supportive• Shows trust and

confidence in subordinates

• Shows concern for subordinates’ welfare

• Gives recognition to subordinates for accomplishments

Two fundamental types of leader behaviors

BLAKE & MOUTON: MANAGERIAL GRID

Best managers are both task- and people-oriented

BLAKE & MOUTON: MANAGERIAL GRID

Best managers are both task- and people-oriented

TRANSFORMATIONAL LEADERSHIP

Leaders who inspire followers to make major changes or to achieve at very high levels

TRANSFORMATIONAL LEADERSHIP

Leaders who inspire followers to make major changes or to achieve at very high levels

TRANSACTIONAL LEADERSHIP

Emphasizes the exchange of rewards for followers’ compliance

TRANSACTIONAL LEADERSHIP

Emphasizes the exchange of rewards for followers’ compliance

Leadership Approaches Based on Leader’s Behavior

Managerial Grid

• Focuses on two leadership behaviors: concern for people and concern for results

• Leaders can be

– High in both

– Low in both

– In the middle on both

– High in one, low in the other

Low High

Low

High

Concern for Results

Co

nce

rn f

or

Peo

ple

9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

GoodLeaders

PoorLeaders

MediocreLeaders

Transformational Leadership

Transformational leaders

• Empower and coach followers

• Motivate followers to:

– Ignore self-interest

– Work for the larger good of the organization

– Achieve significant accomplishments

– Make major changes

Transactional Leadership

Transactional leadership• Is more passive• Emphasizes exchange or rewards or

benefits for compliance with leader’s requests

• Appeals to followers’ self-interests to motivate their performance

• Routine changes

The Leadership Process and Followers’ Behaviors

Important points about followers:• They can impact a leader’s success• They can affect the leader’s style and success• They may be as informed as leaders and may

share power with them• Usually have lower formal authority• Leaders are usually followers of someone else• They have implicit leadership theories

HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP MODEL

Focuses on followers’ “readiness” to engage in learning new tasks

HERSEY AND BLANCHARD: SITUATIONAL LEADERSHIP MODEL

Focuses on followers’ “readiness” to engage in learning new tasks

LEADER-MEMBER EXCHANGE (LMX) THEORY

Focuses on types of relationships between a leader and a follower

LEADER-MEMBER EXCHANGE (LMX) THEORY

Focuses on types of relationships between a leader and a follower

Leadership Approaches Based on Follower’s Behavior

Situational Leadership Model

• Leadership behaviors depend on “readiness” of followers

– Ability in a new task

– Willingness to undertake the new task

• Leadership behaviors

– Supportiveness (people orientation)

– Directiveness (task orientation)

Leader-Member Exchange Theory

• Quality of the leader-member relationship can influence behavior of subordinates

• Leader should build a strong, mutually beneficial relationship

• Relationship goes through stages:– Stranger– Acquaintance– Maturity

Role-Implementation

High

AlmostUnlimited

Team

Leader-Member Relationships

Role-Making

Medium

Limited

Role-Finding

Low

None

Self

Relationship-building phase

Quality of leader-member exchange

Amounts ofreciprocal Influence

Focus of interest

Stranger

Relationship CharacteristicsRelationship

Characteristics

Relationship stage

Relationship stage

Maturity

Time

Acquaintance

The Situation

Situational variables affecting leadership are:• Tasks to be performed

– If task changes, leadership style changes– Unstructured task done by experts supportive

leadership– Structured task done by inexperienced people

directive leadership

• Organizational context– Immediate work group + larger organization– Organizational culture influences leadership style

• Also strategy, structure, HR practices, controls

FIEDLER: CONTINTENCY LEADERSHIP MODEL

Focuses on type of leader and the degree of favorability of the situation

FIEDLER: CONTINTENCY LEADERSHIP MODEL

Focuses on type of leader and the degree of favorability of the situation

HOUSE: PATH-GOAL THEORY

Use leadership approach based on both subordinate skills and situation

HOUSE: PATH-GOAL THEORY

Use leadership approach based on both subordinate skills and situation

Leadership Approaches Based on Situation

Leadership Contingency Theory

Premise: Leadership effectiveness depends on 1) favorability of situation and 2) type of leader

FAVORABLE SITUATION

• Good subordinate relationships• Highly structured task• High amount of position power

UNFAVORABLE SITUATION

• Poor subordinate relationships• Unstructured task• Leader lacks position power

TASK-ORIENTED LEADERS

Do best when the situation is either:• Highly favorable, or• Highly unfavorable

PEOPLE-ORIENTED LEADERS

Do best when the situation is either:• Moderately favorable, or• Moderately unfavorable

• Leader’s job is to increase subordinate satisfaction and effort

• Assumes that:– One leadership approach will work better in

some task situations than others

– Leaders can modify their styles to suit the situation

• Two basic leadership behaviors:– Supportive

– Directive

Path-Goal Theory

The task is:Frustrating, boring, stressful,

structured, and routine

Subordinates are:Highly experienced and

competent

The task is:Interesting but ambiguous, nonstressful, unstructured,

varied

Subordinates are:inexperienced

Directive Leadership Style(Task oriented)

Supportive Leadership Style(Person oriented)

Goal(i.e., increased performance)

IF

AND

IF

AND

Path-Goal Theory

Adapted from Exhibit 9.14

Substitutes for Leadership

Direct Feedbackfrom Task

Direct Feedbackfrom Task

Cohesive workgroup

Cohesive workgroup

Advisory orStaff SupportAdvisory or

Staff Support

IntrinsicallySatisfying Task

IntrinsicallySatisfying Task

Ability,Experience,

Training

Ability,Experience,

Training

ProfessionalOrientation

ProfessionalOrientation

Substitutesfor Leadership

Substitutesfor Leadership