W4DQ

jery.b

07CH_Youssef_IO_2e.pdf

Home >Psychology homework help >W4DQ

195

7Leadership and Communication

Ryouchin/Getty Images

Learning Outcomes After reading this chapter, you should be able to

• Define leadership and contrast leadership with management.

• Compare and contrast the different leadership theories.

• Identify the most effective ways to select and develop leaders.

• Describe the characteristics of positive leadership.

• Describe the communication process in organizations.

• Identify common barriers to effective communication.

you83701_07_c07_195-230.indd 195 4/20/17 5:19 PM

196

Section 7.1 The Meaning of Leadership

7.1 The Meaning of Leadership Researchers and practitioners have studied organizational leadership for more than a cen- tury. Although research approaches differ, the same basic question guides all leadership research: What constitutes leadership and how does it emerge? To find answers, researchers and practitioners break the topic into three main lines of inquiry:

• What is the difference between management and leadership? Are all good leaders also good managers? Why or why not?

• How does leadership emergence differ from assigned leadership? What are the advantages and disadvantages of each?

• Are leaders born or made? What specific characteristics of leaders are innate? What specific abilities are learned?

The following sections address each of these questions in turn.

Consider This: What Is Leadership? Think about each of the questions above and try to answer them using examples and evidence from your own personal, social, and/or professional experience.

Management Versus Leadership John Kotter, a Harvard University professor, explained the difference between managers and leaders by determining where they focus their time and energy. He argues that managers act to reduce organizational complexity by creating plans, setting goals, monitoring work, and allocating resources. Leaders, on the other hand, focus on coping with change by establish- ing a vision of the future, aligning others to this vision, and inspiring them to achieve great things (Kotter International, 2014). Similarly, an interesting series of studies in the 1980s dif- ferentiated between successful and effective managers: Successful managers are those who get promoted faster. Effective managers are those with high-performing units and satisfied employees. Although they share similar behaviors, successful managers were found to spend significantly more time networking, socializing, politicking, and interacting with outsiders than performing traditional management functions such as planning and decision making or undertaking HR activities such as developing and motivating their followers. In contrast, effective managers spent most of their time on communication and HR management activi- ties and spent the least amount of their time on networking and playing politics. Unfortu- nately, the activities that contribute the least to effectiveness tend to be the ones rewarded by success and promotion in the world of leadership (Luthans, 1988). Of course, management and leadership overlap in that effective managers often exhibit superior leadership skills, and excellent managerial skills often characterize effective leaders as well. Thus, the two are not mutually exclusive but may have different emphases.

you83701_07_c07_195-230.indd 196 4/20/17 5:19 PM

197

Section 7.1 The Meaning of Leadership

In this book, we will define leadership as the process of influencing a group of people to achieve a specific vision or goal. This definition has three important components. First, lead- ership is a process, which implies that it is not a single trait or characteristic and may thus be achieved by all people. Second, leaders must influence followers to achieve a desired outcome, a task that requires leaders to act socially using a positive personal style. Third, leadership is effective only to the extent that it is able to promote the achievement of specific goals and out- comes. Throughout this chapter, we will refer to people who engage in leadership processes as leaders, and those whom the leaders influence will be called followers.

Emergent Leadership Versus Assigned Leadership One type of leadership, called assigned leadership, stems from a person’s formal job title or position within the organization. Plant managers, team leaders, frontline supervisors, and members of senior management (CEOs, presidents, senior vice presidents, etc.) are examples of assigned leaders. On the other hand, when a person displays behaviors that the group per- ceives to be leader-like, that person exhibits emergent leadership, regardless of his or her job title or position within the company. Unlike assigned leaders, emergent leaders are not defined as leaders due to any official assignment. Researchers have identified a number of personality traits that are linked to emergent leadership, including confidence, dominance, and intelligence (Smith & Foti, 1988).

The most important thing to keep in mind is that people are not effective leaders simply because they are assigned a leadership role. Effective leadership stems not from a job title but from actions and behaviors.

Are Leaders Born or Made? The question of whether leaders are born or made is one of the fundamental issues in lead- ership research. Until recently, the answer to this question remained elusive. However, with the help of identical-twin studies, researchers believe they now know the answer. Because identical twins who are raised away from each other share the same DNA but not the same environment, genetic influences are believed to account for their similarities.

Scientists looked at whether identical twins reared apart shared leadership (or lack of leader- ship) qualities. In one study, researchers tallied the number of leadership roles that were held in professional associations and organizations by 110 identical twin pairs and 94 nonidenti- cal twin pairs who were reared in different environments (Arvey, Rotundo, Johnson, Zhang, & McGue, 2006). Interestingly, the researchers determined that 30% of leadership-role occu- pancy was due to heredity, whereas 70% was due to the environment in which the twin was raised. Thus, genetics do help to determine a person’s propensity for leadership, but environ- mental factors exert the stronger influence. Additional research has replicated these results and refined our understanding of them, finding that 17% of leadership emergence is due to specific environmental factors or differences in work experiences (Arvey, Zhang, Avolio, & Krueger, 2007). This body of research is very important to our understanding of leadership because, for the first time in history, we can say that leaders are both born and made. Thus, organizations must attempt not only to identify both innate leadership traits and learned leadership behaviors during selection processes but also to provide effective experiences to promote leadership development.

you83701_07_c07_195-230.indd 197 4/20/17 5:19 PM

198

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

7.2 Traditional, Contingency, and Relational Theories of Leadership Although the importance of effective leadership is widely recognized, leadership scholars and practitioners hold different and sometimes even contradictory views on the characteristics and behaviors that make a leader. Specifically, leadership theories vary in the emphasis they place on the leader, the followers, their interaction, and the context or environment within which they operate.

Traditional Theories Although current research supports the idea that leadership is based on a combination of genetic and environmental factors, leadership research at the turn of the 20th century debated which one was more important. Those who supported trait theories, which assume leadership has a biological origin, believed that leadership was an innate quality that only a very few possess. Proponents of behavioral theories of leadership, which suggest that leadership is attainable by anyone who has the correct training and experiences, focus less on leaders’ traits and more on their observable behaviors. Even though research from this period is limited due to both its polarity and datedness, information gleaned from both per- spectives is still relevant to current conceptualizations of leadership. Let’s take a closer look at each set of theories in turn.

Trait Theories In general, trait theories of leadership differentiate leaders from nonleaders by their per- sonal traits and characteristics. These theories are often referred to as great-men theories because they tried to identify innate characteristics shared by the great leaders in history, such as Abraham Lincoln, George Washington, Mohandas Gandhi, Martin Luther King Jr., and John F. Kennedy. Proponents asserted that only a few “great” people possessed these traits and ascended to leadership positions. Those without these traits were destined to take roles as follow- ers. According to trait theory, then, leaders are special people, different from the average human being (Kirkpatrick & Locke, 1991).

On the surface, trait theories seem to make sense. However, even researchers of the time were unable to identify a consistent set of characteris- tics that differentiated between leaders and non- leaders. One researcher from the late 1960s, for example, examined 20 trait-theory studies and found that of the nearly 80 leadership traits iden- tified, only 5 were consistent across only 4 of the studies (Geier, 1967). By the early 1990s researchers were thoroughly confused by the lack of consistency in the leadership traits identified in various studies. Indeed, the only thing I/O psychologists could say for sure was that leaders were different from nonleaders—they just didn’t know exactly how.

Mike Shapiro/Cartoonstock.com

you83701_07_c07_195-230.indd 198 4/20/17 5:20 PM

199

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

With the identification of the Big Five personality traits in the 1990s (see Chapter 3), researchers were able to assign each of the leadership traits identified thus far into one of the five personality categories (extraversion, agreeableness, openness to experience, con- scientiousness, and neuroticism). Of the Big Five traits, extraversion is the strongest predic- tor of leadership emergence (Judge, Bono, Ilies, & Gerhardt, 2002). This makes sense; it is really no surprise to learn that people who are energetic, dominant, social, and outgoing are often described as leader-like. However, not all leaders display extraversion. For example, Bill Gates, founder of Microsoft, is known to be introverted, as was Steve Jobs, founder of Apple. Other elements of Big Five traits, such as aspects of conscientiousness (“disciplined” and “keeps commitments”) and openness to experience (“takes risks” and “flexibility”), are also related to leadership emergence.

Another trait that shows a relationship to leadership effectiveness is emotional intelli- gence (EI). Leaders with high EI are self-aware, good at detecting others’ emotions, and able to manage their own emotions (Goleman, 2000). Once again, it is easy to see how man- agers who can effectively read and manage emotions and skillfully handle social interac- tions would also have greater influence over their followers. For example, a study of division heads in a global food and beverage company found that 87% of leaders with EI competen- cies were also in the top third for performance-based bonuses, and their divisions outper- formed annual revenue targets by 15% to 20%. Contrarily, a study by the Center for Creative Leadership found inadequate EI to be a primary cause of executive failure and to be much more detrimental for leaders than lack of technical skills (Luthans, 2002a). Much has yet to be determined regarding the scientific dimensions and trainability of EI, which has led to criticism of the concept (Locke, 2005). However, the notion that social aptitude is critical for leaders is impossible to ignore.

Find Out for Yourself: Your EI Are you emotionally intelligent? To help you determine your level of EI, access and com- plete the assessment provided by the Greater Good Science Center at the University of California–Berkeley.

Test Your Emotional Intelligence

What Did You Learn?

1. What is your overall level of EI? 2. Which types of emotional expression do you seem to detect the most? Why? 3. Which types of emotional expression do you seem to detect the least? Why? 4. Which of the characters were easier to “read”? Why? 5. Which of the characters were more difficult to “read”? Why? 6. Were there any consistencies in your ability or inability to read characters based on

gender or race? 7. What are some of the lessons you learned from this assessment? 8. Based on this assessment, how can EI help you become a better communicator? 9. Based on this assessment, how can EI help you become a better leader?

you83701_07_c07_195-230.indd 199 4/20/17 5:20 PM

http://greatergood.berkeley.edu/ei_quiz/

200

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Overall, then, trait theories have both strengths and weaknesses. Their greatest strength lies in their long history. After more than a century of study, trait theories boast the deepest and broadest set of published research in the leadership canon. Furthermore, the simplicity of working with a few broad leadership traits makes trait theories easier for organizations and workers to understand and apply. However, these theories are oversimplifications of the lead- ership process, as they do not take into consideration situational factors or followers’ charac- teristics. Finally, because the main focus of trait theories is to identify established character- istics, trait theories often face criticism for being useless in terms of helping develop leaders.

Consider This: The Best Leader You Have Ever Had—Part 1 Think about your best leadership experience or the best leader you have ever had.

Question to Consider

1. What were some of the traits that this leader possessed? Based on your knowledge of individual differences from previous chapters, be sure to list only traits and not atti- tudes, behaviors, or other characteristics that can be trained or developed.

Behavioral Theories The inconsistency of early trait theories led some I/O psychologists in a new direction. In the late 1940s researchers at Ohio State University conducted the most extensive study of the time on the leadership behaviors important to worker performance. During the study, researchers asked workers to identify behaviors of effective leaders. From the hundreds of identified behaviors, they discovered that the vast majority clustered around two broad dimensions: task-centric leadership and people-centric leadership.

Table 7.1: Task-centric versus people-centric leadership styles

Leadership style Pros Cons

Task-centric • Creates clear, easy-to-follow work schedules.

• Clearly defines requirements and deadlines.

• Maintains high standards with optimal efficiency.

• Is best for employees who need structure and struggle with time management.

• Can lead to a lack of employee autonomy and creativity, which can result in low morale.

• Generally not a good fit for self- motivated employees.

People-centric • Acknowledges individual employees for the work they do.

• Focuses on employee relationships. • Encourages employees to feel like

they are a part of the company’s success.

• Employees may feel like they need more task-oriented direction.

• Focus on the manager–employee relationship might displace the focus on other important aspects, which can result in ineffective decision making.

Source: Based on “Task-Oriented vs. People-Oriented Management Styles: Which Is Better?” by E. Friedman, 2016 (http://blog.eskill.com/task-people-oriented-management).

you83701_07_c07_195-230.indd 200 4/20/17 5:20 PM

http://blog.eskill.com/task-people-oriented-management

201

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

The task-centric leadership style, known as initiating structure, includes behaviors by which the leader provides clear guidance and structure to help employees achieve specific goals. Leaders who are high in initiating structure typically do things such as set and maintain high performance standards, schedule and assign work, and set clear deadlines.

The people-centric leadership style, also called consideration, includes relationship behav- iors expressed as displays of trust, camaraderie, and regard for workers’ feelings. Subor- dinates of a highly considerate leader would likely describe him or her as approachable, respectful, and supportive of others.

Which of these two styles is more effective? At first, researchers hypothesized that leaders high in both styles would be the most effective, because such leaders would not only guide employees toward reaching goals but also support them emotionally along the way (Kerr, Schriesheim, Murphy, & Stogdill, 1974). Research, however, has not always supported this notion. More recent studies show that initiating structure is more strongly related to employee performance, whereas consideration is more important for employee attitudes such as orga- nizational commitment, job satisfaction, and overall morale (Judge, Piccolo, & Ilies, 2004).

As with trait theories, the behavioral theories of leadership have both advantages and disad- vantages. On the positive side, research into the two behavioral leadership styles is extensive and strongly supports their link with employees’ performance and attitudes. A major distinc- tion between behavioral theories and trait theories is that the former suggests the possibility of leader development—that is, leaders are not born and can be made. As a negative, this set of theories has failed to identify a universal style of leadership that works with all people in every situation.

Consider This: The Best Leader You Have Ever Had—Part 2 Reflect on your best leadership experience or the best leader you have ever had.

Questions to Consider

1. What were some of the behaviors this leader exhibited? 2. When, how often, and in what ways did he or she initiate structure? 3. When, how often, and in what ways did this leader show consideration?

Contingency Theories Although trait and behavioral theories both significantly contributed to our understanding of leadership, we now know that predicting leadership success involves more than simply pinpointing a few key traits or identifying desired behaviors. Contingency theories of lead- ership were developed to address the complex ways in which situational factors interact with a leader’s style and impact his or her effectiveness. Simply put, these theories maintain the basic premise that understanding a leader’s performance requires understanding the situa- tion in which he or she leads. In the next section, we will examine two contingency theories: Fiedler’s contingency model and path–goal theory.

you83701_07_c07_195-230.indd 201 4/20/17 5:20 PM

202

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Fiedler’s Contingency Model Fiedler’s contingency model (Fiedler, 1967) is considered the first contingency model of leadership. The theory categorizes leaders as either task oriented or relationship oriented (similar to the two leadership styles discussed earlier, initiating structure and consideration), yet it maintains that the effectiveness of either type depends on the situation and the amount of control the leader has over it.

Within the theory, Fiedler identifies three conditions that describe the situation: leader– follower relationship, degree of task structure, and formal authority or power. As each condi- tion increases in strength (e.g., better leader–follower relationships, greater job structure, and higher levels of leader power), so too does the amount of control the leader possesses. For example, a situation that highly favors leader control might feature an army sergeant who has developed positive relationships with subordi- nates, clearly conveys specific expectations, and has the authority to reward and punish the sol- diers. On the other hand, a situation that does not favor leader control might feature the president of a sporting club who has offended the member- ship, neglected to set any formal goals, and has no authority to hold any of the other volunteer board members accountable for their actions. Fiedler’s theory concludes that, in extreme situ- ations (i.e., very favorable or very unfavorable for leader control), a task-oriented leader will be more effective. However, in moderately favorable situations, the relationship-oriented leader will be more effective.

Although Fiedler was the first to try to incorporate situational factors into the overall under- standing of leadership effectiveness, his model has a number of limitations. First, it assumes that leaders have only one leadership style and that organizations must match leaders to appropriate situations to promote peak leadership effectiveness. Of course, we all know lead- ers who are able to adapt their style to fit the situation. Second, the model does not explain what to do should a mismatch arise between the leader and his or her situation. Finally, although appropriate theoretically speaking, Fiedler’s ideas would be impractical to use, because organizations would have to try to evaluate every work situation and potential leader and then somehow match the two.

Hersey and Blanchard’s Situational Leadership Model Shortly after Fiedler’s model was introduced, Hersey and Blanchard (1977) developed another contingency model, which they named situational leadership. Unlike Fiedler’s model, which assumed a leader usually has one preferred style, Hersey and Blanchard’s model proposed that leaders can adapt their styles to the situations at hand. Specifically, leaders shift among four leadership styles, based on their followers’ maturity level. In turn, followers’ maturity is determined by their (a) willingness (motivation) and (b) ability (skills) to perform their tasks or responsibilities. Immature followers are neither willing nor able to perform. Mature

iStockphoto/Thinkstock

Better leader–follower relationships, greater job structure, and higher levels of leader power increase the amount of control a leader possesses. For example, the army is an organization that highly favors leader control.

you83701_07_c07_195-230.indd 202 4/20/17 5:20 PM

203

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

followers are both willing and able to perform. Between these two extremes, followers vary in their levels of maturity, and leaders adapt their styles accordingly.

1. Telling is the leadership style used with followers who are neither willing nor able to perform. The leader-follower relationship is defined by one-way communication, with the leader defining the followers’ roles and providing the parameters for completing tasks.

2. Selling is used with followers who are able but not willing to perform. The leader– follower relationship relies on two-way communication, allowing the leader to maintain direction while providing support and encouraging followers to buy into the process.

3. Participating is used with followers who are willing but not able to perform. The leader-follower relationship relies on shared decision making, with the leader focusing on relationship building.

4. Delegating is used with followers who are both willing and able to perform. The leader–follower relationship is mostly one of support, with followers being in charge of their assigned tasks and how they are accomplished and the leader monitoring this process.

Unfortunately, despite the intuitive appeal of this theory, subsequent empirical scientific research did not support it (Fernandez & Vecchio, 1997; Vecchio, 1987). However, the tenets of the theory remain viable, especially the importance of adapting leadership style to follow- ers and situations.

Path–Goal Theory Path–goal theory focuses on the behaviors leaders use to motivate workers to achieve their goals. As discussed earlier in this chapter, effective leaders help employees reach their profes- sional and organizational goals by guiding them along a path to success and supporting them with resources and rewards.

Path–goal theory proposes four styles leaders can utilize to motivate employees to achieve their goals (House, 1996):

• Directive leadership provides task structure by instructing employees what work to do and when to complete it.

• Supportive leadership displays concern for the best interest of the employees. • Participative leadership involves employees in decisions that affect their work. • Achievement-oriented leadership sets challenging goals for employees and

emphasizes high performance expectations.

The effectiveness of each style is contingent on the characteristics of both the situation and the followers. Unlike Fiedler’s model, which suggests that leaders’ behaviors are fixed, path– goal theory assumes that effective leaders can and in fact should adapt their behaviors to suit each situation and group of followers. For example, if employees face an ambiguous task, leaders should adopt a directive leadership style and provide the missing structure and orga- nization. A team of high-performing professionals, on the other hand, would be more moti- vated by a leader who adopted an achievement-oriented style of leadership.

you83701_07_c07_195-230.indd 203 4/20/17 5:20 PM

204

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Path–goal theory has a number of positive attributes. Most importantly, it suggests that lead- ers are able not only to change their leadership styles but also adapt them to fit the situation. Furthermore, it highlights the ways in which leaders can motivate employees’ performance, which is essential if leadership is to be effective. Despite these strengths, path–goal theory has faced criticism for its complexity and the lack of research to support it.

Relational and Followership Theories So far in this chapter, we have examined leadership theories that deal with the ways in which innate traits, observable behaviors, and situational factors can influence leadership effec- tiveness. However, none of these theories address the influence of the critical relationship between leader and follower. Two theories that do so are called leader–member exchange theory and implicit leadership theory. Furthermore, leadership does not occur in a vacuum. Followers can play an important role in allowing leaders to emerge and become effective. In other words, where there is no followership, there is no leadership. Although followership theories and leadership theories that emphasize the role of followers are not as abundant as those that focus on leaders, we will discuss followership toward the end of this section.

Leader–Member Exchange Theory Take a moment to think about a manager for whom you have worked. Did he or she treat you and your fellow employees exactly the same? If not, how did the treatment differ? Did some employees receive better work assignments, greater communication, or more interpersonal attention? These are some of the main topics of leader–member exchange theory (LMX), which deals with the way in which the leader–follower relationship affects the leadership process (Dansereau, Graen, & Haga, 1975). LMX proposes that leaders develop special rela- tionships with a small segment of followers, called the in-group, and place the remaining followers in the out-group. The leader makes placements based on early interactions, and these placements remain relatively stable over time. The leader views the in-group followers as competent, trustworthy, and highly motivated and views the out-group as lacking these qualities. Although there are questions about how leaders establish in-group and out-group membership, it is clear that leaders treat members of the two groups differently. Specifically, in-group followers receive more information, rewards, and support and gain more confidence than out-group members (Dansereau et al., 1975). Conversely, out-group members receive more punishments, less communication, and fewer personal interactions.

The manner in which a leader interacts with members of each group has important impli- cations for workers’ job performance and attitudes. High-quality leader–member exchange relationships lead to less employee turnover and counterproductive behaviors, higher job performance, higher quality promotions, and greater job satisfaction, organizational commit- ment, and citizenship behaviors (Chen, Kirkman, Kanfer, Allen, & Rosen, 2007; Graen & Uhl- Bien, 1995; Martin, Guillaume, Thomas, Lee, & Epitropaki, 2016). These findings have also been supported across cultures, although they are stronger in Western cultures (Rockstuhl,

you83701_07_c07_195-230.indd 204 4/20/17 5:20 PM

205

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Dulebohn, Ang, & Shore, 2012). One interesting study found that in-group members were more likely to engage in creative work due to increased levels of positivity garnered from hav- ing a closer relationship with the leader (Atwater & Carmeli, 2009).

One of the most frequently cited criticisms of LMX is that it seems unfair. The notion of in- groups and out-groups is offensive to most people, as is the experience of being treated dif- ferently by one’s boss. Workplaces in which LMX seems to hold true can be filled with ani- mosity, conflict, and isolationism between members of the two groups. Furthermore, if the leader makes in- and out-group placements based on age, gender, race, cultural background, or physical abilities, charges of discrimination may be warranted. Leaders must be aware of personal biases and strive to allocate resources based on employees’ needs and competence instead of first impressions, personal relationships, or physical characteristics.

Consider This: Being in the In-Group Versus Being in the Out-Group

Think about a situation in which you believe you were in a leader’s in-group.

Questions to Consider

1. How did the leader treat you differently? 2. Were you the only one favored by the leader, or were there others, too? 3. What common traits, values, beliefs, or KSAOs (e.g., gender, age, religion, race, color,

cultural background, physical appearance, hobbies, interests) did you share with the leader?

4. What common traits, values, beliefs, or KSAOs did you share with other members of the in-group?

5. On what traits, values, beliefs, or KSAOs did you, the leader, or others in the in-group vary from members of the out-group?

6. How did being in the in-group make you feel—for example, competent, appreciated, accepted, fulfilled, proud, guilty, ashamed?

Implicit Leadership Theory Implicit leadership theory (ILT) defines leadership from the follower’s point of view (see Figure 7.1). According to ILT, followers use observations and experiences to create a model of their ideal leader and then compare all leaders against this standard (Lord & Maher, 1993). Leaders who fit the standard will be viewed as good; those who do not will be viewed as poor. Followers whose leaders match their ideal standard are more likely to develop more positive attitudes, greater well-being, and a higher quality relationship with their leader (Epitropaki & Martin, 2004).

you83701_07_c07_195-230.indd 205 4/20/17 5:20 PM

206

1. Sensitivity 2. Intelligence 3. Dedication 4. Dynamism

Effective leader prototype

Prototype matching process

(A)

1. Sensitivity 2. Intelligence 3. Dedication

Helen’s behaviors/traits

(B)

Question: Is Helen dedicated? Reasoning: “Well, she’s an effective

leader. Therefore, she is dedicated.”

Rating behaviors or using global impressions

(D)

Helen is an effective leader

Leader evaluation

(C)

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Figure 7.1: ILT and leadership ratings

This sample rating shows that Helen, a potential leader, meets three of the four specified criteria of an effective leader. This makes her a strong candidate for being an effective leader to this particular group of followers.

From Industrial/Organizational Psychology: Understanding the Workplace (5th ed., Fig. 13.1), by P. E. Levy, 2016, New York, NY: Worth Publishers. Copyright 2017 by Worth Publishers. All rights reserved. Reprinted by permission of Worth Publishers.

1. Sensitivity 2. Intelligence 3. Dedication 4. Dynamism

Effective leader prototype

Prototype matching process

(A)

1. Sensitivity 2. Intelligence 3. Dedication

Helen’s behaviors/traits

(B)

Question: Is Helen dedicated? Reasoning: “Well, she’s an effective

leader. Therefore, she is dedicated.”

Rating behaviors or using global impressions

(D)

Helen is an effective leader

Leader evaluation

(C)

Although you might assume that each person would develop his or her own unique standard of leadership, this is surprisingly not the case. Typically, employees identify six characteristics on which they evaluate their leaders’ effectiveness. The first four—sensitivity, intelligence, dedication, and dynamism—are indicative of positive leadership; the last two, tyranny and masculinity, are associated with negative leadership (Epitropaki & Martin, 2004). Although ILT has important implications for understanding how followers evaluate leadership effec- tiveness, there is little consensus on how organizations should apply the theory to help select and develop leaders.

you83701_07_c07_195-230.indd 206 4/20/17 5:20 PM

207

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

What About Followers and Followership? It is hard to imagine a leader with no followers. While a leader may be assigned to a position and given authority over others, the leader may not be able to exercise effective leadership unless the followers choose to allow him or her to do so. Keep in mind that followership is not the same as obedience or submission. Some leaders may exercise their authority through dominance, fear, or control over rewards and punishment. These leaders may force their fol- lowers to do what they want them to do. However, obeying orders is vastly different from willingness to buy into a leader’s vision and committing to shared goals and strategies. The notion of leadership as the ability to influence and achieve goals through others necessitates the latter.

The limited research on followership shows that followers play an active role in effective lead- ership. Almost all of the leadership qualities discussed in this chapter are only important to the extent that they are perceived by followers. Moreover, followers are willing to follow lead- ers with whom they share mutual identification and trust (Hollander, 1992). Research shows that leaders’ trustworthiness is determined through their followers’ perceptions of their abil- ity (e.g., knowledge and skills), benevolence (e.g., having the followers’ best interest at heart), and integrity (e.g., honesty, fairness, and consistency in words and actions) (Colquitt, Scott, & LePine, 2007).

Furthermore, in the same way that trust and respect are earned over time, perceived leader- ship and desired followership also change and evolve. Leaders gain legitimacy based on how they are perceived to have been selected, how they behave, and the extent to which they meet

Consider This: Your ILT Using your own observations and experiences, write a one-page description of your ideal leader. In your description, be sure to include the traits, values, beliefs, and behaviors you would expect him or her to exhibit in particular situations, as well as characteristics of your relationship with the leader. Now make a brief list of three to five leaders who have influenced you personally, socially, academically, or professionally. Rank order these leaders, starting with the one who influenced you the most. Compare each of the leaders on your list against your ideal leader description.

Questions to Consider

1. To what extent do the three to five leaders you listed fit your original description of an ideal leader? To what extent do they deviate? To what extent are they similar to or different from each other? To you?

2. Based on your answers, what is your ILT that influenced your perceptions of your leaders’ potential or effectiveness?

3. Optional: Repeat the above exercise with a list of the worst leaders you have ever had. To what extent did your ILT, rather than these leaders’ actual characteristics or behaviors, influence your perceptions of them?

you83701_07_c07_195-230.indd 207 4/20/17 5:20 PM

208

Section 7.3 Contemporary and Emerging Theories of Leadership

their followers’ expectations. For example, emergent or elected leaders tend to earn more legitimacy than assigned leaders, but they are also subject to more scrutiny and criticism.

Moreover, followers tend to respond positively to leaders who demonstrate, through positive past encounters and conformity to norms, that they can consistently meet followers’ expecta- tions. These types of leaders tend to earn what is called idiosyncrasy credit, or the freedom and discretion to deviate from group expectations. For example, a leader who has established perceptions of competence and has earned the trust, respect, and loyalty of his or her fol- lowers can afford to “rock the boat” and bring about unusual changes that may otherwise be unacceptable (Hollander, 1992). This leader has already earned enough “credit” in the idio- syncrasy credit “bank” to draw from when such situations arise, which makes the followers more accepting of such deviations from expectations.

Finally, many organizations are now moving away from the traditional leadership framework and are using various forms of shared leadership, where no one person is assigned all the authority associated with leadership. For example, team members can be assigned various leadership responsibilities based on experience, or leadership roles can be rotated periodi- cally among team members over time or across projects. Shared leadership, also sometimes referred to as distributed leadership or collective leadership, blurs the line between leader- ship and followership and has been shown to contribute significantly to team effectiveness (Wang, Waldman, & Zhang, 2014).

Consider This: Shared Leadership—an Orchestra Without a Conductor?

Watch the following video in which members of the Orpheus Chamber Orchestra discuss how they practice shared leadership by operating without a conductor!

A Case of Shared Leadership: The Orpheus Chamber Orchestra

Questions to Consider

Think about the following questions the next time you work on a leaderless team project for a class, at work, or as a volunteer.

1. What are some aspects of the project that require leadership? 2. Who emerged as the leader of each of those aspects? Who emerged as the leader of the

project in general? 3. What were the contributing factors to the emergence of each leader? 4. When and why do some of these leaders cease to be perceived as leaders?

7.3 Contemporary and Emerging Theories of Leadership Although the identification of leadership components and styles has long been of interest to researchers, more recent topics of study have focused on leaders’ ultimate motives and how these influence their behaviors. We will examine some of these special topics in the next section.

you83701_07_c07_195-230.indd 208 4/20/17 5:20 PM

https://www.youtube.com/watch?v=r5G-g911awE

209

Section 7.3 Contemporary and Emerging Theories of Leadership

Charismatic Leadership When you hear the phrase “charismatic leadership,” specific leaders undoubtedly spring to mind, such as Barack Obama, John F. Kennedy, Martin Luther King Jr., Mohandas Gandhi, and Indira Gandhi. Each of these individuals is considered charismatic, but why? According to the research, charismatic leaders challenge the status quo, rally followers around an inspirational vision, empower followers, support followers’ needs, and take personal risks to achieve success. Based on the expression of these behaviors, followers make heroic attribu- tions about their leader, which enhances the leader’s credibility and effectiveness (Conger & Kanungo, 1998).

Of course, charismatic leaders are not always moral or ethical. Individuals such as Adolf Hit- ler, Benito Mussolini, and Charles Manson displayed all of the above-mentioned charismatic leadership behaviors, yet they used their power in deplorable ways. Thus, it is important to distinguish between positive and negative charismatic leaders. First, creating and maintain- ing personal power is the main goal for the negative charismatic leader. These individuals care more about creating personal devotion than generating commitment to the originally espoused ideals. Second, the negative charismatic leader attempts to keep followers weak and subservient in order to maintain power. On the other hand, a positive charismatic leader supports, empowers, and challenges followers to achieve more. Finally, the negative charis- matic leader uses his or her attributed heroic appeal for self-interest instead of the interest of the followers.

Within the workplace, charismatic leaders can use their power to inspire innovation, collabo- ration, creativity, and industry leadership—or they can misuse their power to inspire anxi- ety, mistrust, and inequality (e.g., a CEO who brokers a multimillion-dollar salary, replete with vacation homes and private jets, at the expense of employees’ benefits and jobs). On the nega- tive side, one study showed that charismatic CEOs were able to negotiate higher salaries even when the organization’s performance was mediocre (Tosi, Misangyi, Fanelli, Waldman, & Yam- marino, 2004). Although negative charismatics are often successful at convincing others to follow what might once have been a worthy goal, their misuse of power and focus on personal instead of public good can result in disaster both for followers and the organization as a whole.

Transactional Leadership Framework Most of the theories presented so far have dealt with leaders who work within a transac- tional leadership framework, in which they guide and motivate followers along a path toward established goals. Transactional leadership contains three distinct sets of behaviors: laissez-faire leadership, management by exception, and contingent rewards.

Laissez-faire leadership is actually neither management nor leadership. Laissez-faire leaders make no decisions, deny responsibility, provide no support to employees, and refuse to take action. This is the most ineffective form of transactional leadership.

Management by exception provides followers with constructive criticism and punishes them for poor performance; this type of leadership can be active or passive. In the active form, lead- ers monitor workers closely and search for performance deviations, which they then imme- diately address. In the passive form, leaders wait for a performance deviation to occur and then react to it. In either case the goal for such leaders is to fix problems quickly and return

you83701_07_c07_195-230.indd 209 4/20/17 5:20 PM

210

Section 7.3 Contemporary and Emerging Theories of Leadership

the situation to the status quo as soon as possible. Both forms are inherently negative, and management by exception is considered to be an ineffective form of management.

In contrast to laissez-faire leadership and management by exception, transactional leaders who practice contingent rewards exhibit good management. Here, leaders provide agreed- upon rewards to followers who work hard and meet goals. A meta-analysis by Judge and Piccolo (2004) found a strong relationship between contingent reward leadership and employee job satisfaction, employee motivation, leader effectiveness, and group/organiza- tional performance.

The power of positive feedback, and positivity in general, was discussed in detail in Chapters 3 and 4. However, it is important to note here that positive feedback and recognition, when administered contingently by leaders to their employees based on their performance, repre- sent powerful rewards that can realize strong motivational results. The magnitude of those

positive results on employee performance has been found to be comparable to that of financial rewards (Stajkovic & Luthans, 1997, 2001, 2003).

In fact, employees can become saturated with financial rewards, in the sense that more money, although good to have, will not necessarily moti- vate them to work harder. Actually, it may moti- vate them to work less and reallocate their time to other personally meaningful goals such as spend- ing time with family and friends, retiring early, or investing their additional financial resources on other hobbies and interests. On the other hand, nobody ever complains of having too much posi- tive feedback or recognition! These two things have the advantage of being inexhaustible.

Thus, leaders should realize that they have at their disposal powerful tools to reward their employees that cost them and their organiza-

tions absolutely nothing: positive feedback and recognition. They can leverage those tools by learning to intentionally observe their followers’ behaviors and contingently rewarding the appropriate behaviors through positive feedback and recognition, instead of, or at least less frequently than, focusing on punishing negative behaviors. Contingent rewards and behav- ioral management were discussed in more detail in Chapter 6.

Transformational Leadership Framework Leaders who work within a transformational leadership framework differ from transac- tional leaders in that they are more concerned with improving followers’ performance and developing them to their fullest potential (Avolio, 1999). Ultimately, transformational leaders attempt to motivate followers beyond their own self-interest in order to accomplish some- thing for the greater good. Research on transformational leadership has dramatically spiked in the past few decades (Judge & Bono, 2000) and has led to the identification of four specific

michaeljung/iStock/Thinkstock

Positive feedback represents a powerful reward that can significantly motivate employees. The performance improvements realized as a result of these intrinsic rewards are equivalent to those of financial incentives.

you83701_07_c07_195-230.indd 210 4/20/17 5:20 PM

211

Section 7.3 Contemporary and Emerging Theories of Leadership

sets of behaviors: inspirational motivation, idealized influence, intellectual stimulation, and individualized consideration.

• With inspirational motivation, leaders attempt to inspire followers to achieve more than they thought was possible by setting high standards of excellence, using stories and symbols to enhance followers’ understanding, and motivating followers to over- come barriers and setbacks.

• Idealized influence provides a vision of the future that transcends followers’ self- interest and creates a collective sense of mission. Transformational leaders who exhibit idealized influence also possess very high standards of moral and ethical conduct, which in turn increases followers’ respect of and trust in them.

• As you can probably guess, intellectual stimulation focuses on stimulating followers’ creativity and challenges them to think outside the box. Followers are encouraged to question the status quo, come up with new ideas, and experiment with new ways to solve big problems.

• Finally, individualized consideration provides followers with a supportive environ- ment and attends to their relationship needs. Typically, transformational leaders who practice these behaviors act as coaches or mentors for their followers. This support and guidance helps followers develop new skills, which then enhance their work performance and potential.

In general, research has shown transformational leadership to be more effective than transac- tional leadership in producing favorable performance and attitudinal outcomes (Bass, Avolio, Jung, & Berson, 2003; Dumdum, Lowe, & Avolio, 2013; Howell & Avolio, 1993). Keep in mind, however, that transactional and transformational frameworks of leadership are not mutually exclusive. Indeed, the best leaders actually use both: transactional to build the initial frame- work, then transformational to inspire even greater motivation and levels of performance.

Emerging Theories of Positive Leadership Over the past several years, there has been a reorientation toward positive leadership theo- ries, including ethical leadership theory, spiri- tual leadership theory, and authentic leadership theory.

Ethical Leadership Theory Ethical leadership theory has four dimensions: integrity and altruism of the leader and collec- tive motivation and encouragement for the fol- lowers (Martin, Resick, Keating, & Dickson, 2009; Resick, Hanges, Dickson, & Mitchelson, 2006; Toor & Ofori, 2009). Ethical leadership is clearly needed in today’s business environment, which is dominated by greed and unethical behavior, as portrayed by the extensive media coverage of recent corporate scandals. Ethical leadership is Mike Baldwin/Cartoonstock.com

you83701_07_c07_195-230.indd 211 4/20/17 5:20 PM

212

Section 7.3 Contemporary and Emerging Theories of Leadership

also critical for corporate social responsibility, reputation, and environmental sustainability, which are currently hot topics in the business landscape.

Spiritual Leadership Theory Spiritual leadership theory (Fry, 2003) includes intrinsic motivation of followers through a sense of membership or community and a sense of calling. Membership and calling are pro- moted by the spiritual leader through vision, hope and faith, and altruistic love. Altruistic love incorporates a wide range of positively oriented dimensions such as kindness, forgiveness, integrity, courage, empathy and compassion, honesty, patience, trust and loyalty, and humil- ity. Spiritual leadership also follows nine spiritual anchors: perfection, compassion, passion, inspiration, investigation, dedication, appreciation, determination, and cooperation (Karakas, 2010). Most importantly, spiritual leadership is different and more inclusive than religious leadership, because it is based on a value system that lends itself to most religious and cul- tural backgrounds. Thus, it is more suitable for global leaders who are leading across cultures, because it is not as specific to the United States or to the West as are most other leadership theories.

Authentic Leadership Theory The third emerging positive leadership theory introduced here is authentic leadership theory. Harter (2002) defines authenticity as “owning one’s own personal experiences, be they thoughts, emotions, needs, wants, preferences, or beliefs[,] . . . [acting] in accord with the true self, expressing oneself in ways that are consistent with inner thoughts and feel- ings” (p. 382). Thus, authentic leaders are expected to remain true to themselves, admit their strengths and weaknesses, and openly express their true thoughts and feelings. Authentic leadership comprises self-awareness, relational transparency, internalized moral perspec- tive, and balanced processing. Balanced processing is the leader’s ability to objectively con- sider different viewpoints when making decisions (Avolio, Gardner, Walumbwa, Luthans, & May, 2004). Authentic leaders are also capable of exploring and striving toward multiple “possible selves” for the future if their present, “actual self ” is less than desirable, without compromising their true self.

Avolio and Luthans (2006) explain that authentic leadership is a long-term developmental process. This process draws from the following factors:

• The leader’s life experiences • The leader’s psychological capital (hope, efficacy, resilience, and optimism) • The leader’s moral perspective • A highly supportive organizational climate

These factors are expected to result in higher self-awareness in leaders, which in turn helps leaders better self-regulate their behaviors toward continuous self-development.

Most notable about authentic leadership development are how it systematically unfolds and the role that a positive organizational context can play. Imagine the hypothetical situation in which an individual is endowed with an ideal combination of talents, resources, and oppor- tunities and has parents, teachers, and role models cheering her on every step of the way. Of course, that person’s emergence as a leader may be easy to predict and explain. She is set up

you83701_07_c07_195-230.indd 212 4/20/17 5:20 PM

213

Section 7.4 Leadership and Power

for success. Now imagine the opposite: an individual who is considered below-average and has limited resources and opportunities but emerges as a leader against all odds. Both of those situations are rare. It is unlikely that a potential leader will find himself in a situation in which his development is perfectly planned. It is also unlikely that an effective leader will result from a haphazard combination of uncontrollable situational factors. Authentic leader- ship development is a more realistic process in which planned and unplanned trigger events are purposefully orchestrated within a supportive organizational climate in order to enhance self-awareness, self-regulation, and self-development. In turn, authentic leaders are charac- terized by being keen to develop their followers into authentic leaders as well. Of course, the ultimate goal of authentic leadership development is veritable, sustainable performance from the leader and the followers.

Find Out for Yourself: Warren Buffett and Bill Gates as Authentic Leaders

Warren Buffett and Bill Gates are two of the richest and most successful businessmen in the world. They are known for investing time and energy in imparting their wisdom, knowledge, and experience to the next generation of leaders, both in their respective companies and in their numerous interactions with college students. Watch the following video for a great exam- ple of one of those many occasions.

Buffett and Gates Go Back to School: Good Business Habits

What Did You Learn?

1. In what ways could Buffett and Gates be considered authentic leaders? 2. In what ways do Buffett’s and Gates’s leadership styles influence the authenticity of

their followers and, in turn, their development into authentic leaders?

7.4 Leadership and Power Power is the capacity of one person to influence the behaviors of another. In many ways this definition is similar to that of leadership. So, are leadership and power the same thing? The answer is no, but the two concepts are intertwined. Power is a tool; leadership is use of that tool. Like any tool, power may be used effectively or poorly, positively or negatively. Finally, not all leaders have the same kind or amount of power, many can lose it, and some have none at all.

Where do leaders get their power? Why do some leaders have power and others do not? Raven (1993) has identified five types of power—legitimate, coercive, reward, expert, and referent— that address these and other power-related questions.

Leaders begin their tenure with a certain amount of legitimate power, which stems from their job title or position within the organization. Workers will follow their boss because he or she is, quite simply, the boss. Typically, leaders who have a higher position of authority will also have greater legitimate power than lower level managers. Keep in mind that leaders, should they prove to be ineffective or incompetent, can quickly lose some or all of their legitimate power.

you83701_07_c07_195-230.indd 213 4/20/17 5:20 PM

https://fod.infobase.com/OnDemandEmbed.aspx?token=40885&wID=100753&loid=69158&plt=FOD&w=420&h=315&fWidth=440&fHeight=365

214

Section 7.5 Identifying and Developing Effective Leaders

Coercive power is based on fear. Followers do what the leader says because they are afraid of negative consequences if they do not. Within an organization, negative consequences can include reprimands, micromanagement, limitations in movement or chances for promotion, revocation of assignments, or job termination. Leaders who use coercive power reinforce compliance, which tends to limit the amount of effort employees put into excelling at their jobs.

Reward power is the opposite of coercive power. Followers comply with the leader in order to obtain positive rewards. In order to have reward power, leaders must be able to give rewards. Examples include pay, benefits, promotions, job assignments, and other recognition.

Expert power stems from a leader’s special skills, knowledge, and expertise. This is one of the strongest forms of power because it is based on the leader’s actual competence rather than his or her job title. Note that leaders who lack expert power can always gain it by increas- ing their knowledge or competence.

Finally, if you have ever liked and admired another person, chances are that person had great influence over your thoughts and behaviors. Referent power is power that develops out of admiration for and the desire to be like the leader. Followers can grant referent power to anyone, regardless of the person’s formal level of leadership or relationship to them. For example, many people attribute referent power to famous actors, singers, athletes, political leaders, and even historical figures whom they have never met or directly interacted with. Charismatic, transformational, and authentic leaders are also likely to exert referent power over their followers.

Leaders may hold any of the five sources of power or combinations thereof, but the ques- tion remains, which sources are the most effective? Research has shown that formal power sources (legitimate, coercive, and reward) are less effective in influencing followers than informal sources (expert and referent). Expert and referent power are positively related to employee satisfaction, commitment, and performance (Carson, Carson, & Roe, 1993; Podsa- koff & Schriesheim, 1985). This is because employees often follow leaders with expert and referent power willingly and voluntarily. On the other hand, legitimate, coercive, and reward power may not always be seen as “earned.” As soon as a leader loses his or her position, that leader will likely lose these formal sources of power. However, expert and referent power may last regardless of formal position.

7.5 Identifying and Developing Effective Leaders Although it is important to understand the hows and whys of effective leadership, organiza- tions need to know how to apply this information to help them identify and develop leaders. I/O psychologists have researched a variety of approaches organizations can use to accom- plish this important task.

you83701_07_c07_195-230.indd 214 4/20/17 5:20 PM

215

Section 7.5 Identifying and Developing Effective Leaders

Leadership Selection As discussed earlier in this chapter, as well as in other chapters of this book, not all human char- acteristics are open to development. For example, we know that a good portion of leadership emer- gence and effectiveness is based on stable per- sonality traits, which tend to be hardwired and almost impossible to change in adults. This is the “born” part of leadership. Thus, it is important to select leaders who possess these traits, because they cannot be developed. Identifying and select- ing effective leaders is one of the most important yet most difficult tasks for organizations. Nadler and Nadler (1998) clearly summarized this chal- lenge, writing that

in their most introspective moments, most executives readily acknowledge that selecting the right people for the right jobs constitutes one of the most important responsibilities. Few decisions that they make will have as direct an impact on every facet of the organization. Yet, few other decisions are made in such an illogical, slipshod manner. (p. 229)

To improve their leadership selection process, organizations should always include the fol- lowing two steps: First, perform a rigorous job analysis of the leadership position in question, and second, introduce structured interviews and assessments into the selection process.

In Chapter 2 we discussed the value of the job analysis in defining the characteristics a worker needs to perform a job successfully. When applied to positions of leadership, a job analysis also provides the data needed to select a successful job candidate, including the critical KSAOs necessary for success, the essential tasks the leader will perform, and the situational factors the leader will experience. Situational factors are especially important when an organization wants to establish fit between a candidate and the work environment. After the organization thoroughly defines the leadership position through a job analysis, it will be able to design an effective evaluation process.

As already mentioned, structured interviews and assessment tools are key to identifying lead- ers. Structured interviews give the organization the opportunity to learn about and evaluate the candidate’s experiences and how they relate to the position, and they are especially effec- tive at evaluating the candidate’s communication, persuasion, influence, and negotiation abili- ties. Assessment tools, in the form of personality tests, measure critical leadership traits, such as extraversion, conscientiousness, and openness to experience. Although not as commonly used as interviews and personality tests, assessment centers also help organizations evaluate leader candidates. Because they require candidates to demonstrate essential leadership skills (such as coaching, delegating, persuading, influencing, making decisions, communicating, and formulating strategy) within a simulated work environment, assessment centers provide clearer insights than any other selection method into an individual’s leadership skills.

Ryan McVay/Thinkstock

Structured interviews and assessment tools are key to identifying potential leaders.

you83701_07_c07_195-230.indd 215 4/20/17 5:20 PM

216

Section 7.5 Identifying and Developing Effective Leaders

Leadership Development According to the ATD, organizations spend billions of dollars each year on leadership train- ing and development (American Society for Training and Development, 2010; Dvorak, 2007a). Much of that investment is made in formal education. Some organizations send leaders to lead- ership programs offered by elite business schools, including Harvard, MIT, Stanford, and Whar- ton. Despite their cost—some have a price tag of $100,000 per person—these programs have the advantages of a prestigious faculty, an elite reputation, and a socially powerful student body. Other companies also make a considerable investment in internal-development pro- grams. General Electric, for example, has created a world-renowned leadership-development facility called Crotonville, where the company develops executive leaders.

Some researchers and practitioners have proposed that organizations use job experiences instead of formal education to develop their leaders. One study found that leaders who were asked to recall specific factors that were most valuable to their development as leaders most frequently cited experiences, not education (McCall, Lombardo, & Morrison, 1988). Clearly, people do learn to be effective leaders on the job, so organizations must provide leaders with specific hands-on development opportunities that stretch and challenge their KSAOs. This is also consistent with the authentic leadership development process, discussed earlier, which relies on planned and unplanned trigger events and experiences rather than just formal edu- cation or training.

Executive Leadership Derailment The reason organizations spend so much time, money, and effort trying to identify, select, and develop leaders is simple: They do not wish to hire ineffective, incompetent, or harmful lead- ers. Leadership derailment, or the process by which a leader displays increasingly ineffec- tive behavior, is very expensive. Costs associated with leadership derailment have been esti- mated to range from $750,000 to $1.5 million per executive leader (DeVries & Kaiser, 2003). One study even estimated that the cost per derailed executive leader exceeds $2.7 million (Smart, 1999). How can this be? By the time a leader derails, the organization has already spent a large amount of money both to recruit the executive (including executive search firm

Find Out for Yourself: Criteria for Selecting Leaders Browse the Internet for leadership position openings. Use free search engines, or if you sub- scribe to more specialized or higher end recruitment sites, you can use those as well.

What Did You Learn?

1. What are some of the most common selection criteria that organizations use for leader- ship position candidates?

2. To what extent do each of those selection criteria relate to personality, individual differ- ences, past experience, or KSAOs?

3. How would you recommend assessing potential candidates on each of those criteria? What specific methods, tools, or tests would you use? You may use additional research to find the most effective approaches for assessing each criterion.

you83701_07_c07_195-230.indd 216 4/20/17 5:20 PM

217

Section 7.6 The Importance of Communication

fees, interview travel expenses, signing bonuses, and relocation costs) and to help him or her improve performance. At the time of termination, the organization loses still more money to the former executive in the form of exiting costs, including retirement plan and severance package payments. Finally, most estimates of leadership derailment expenses do not include the hidden costs associated with an incompetent leader, such as losses in business opportu- nity, customers, employees, and intellectual property.

Studies on the prevalence of incompetent leaders have shown astonishingly high numbers. Participants in one study indicated that only 38% of their bosses, both current and former, were worthy of working for again (Curphy, 2008). After examining a dozen published studies on the investigation of the base rate of leadership failure, Hogan, Hogan, and Kaiser (2010) found that results ranged from 30% to 67% and placed the average at 50%. In other words, on the basis of the data, the authors concluded that “two-thirds of existing managers are insufferable, and at least half will eventually be fired” (p. 556).

The question is, why do leaders derail? Although there are of course many reasons why a person can fail as a leader, research has been able to find some consistent signs of derailment (Hogan & Warrenfeltz, 2003):

• Displaying a lack of self-awareness • Having a narrow focus and lack of strategic perspective • Being arrogant or overly cocky • Exhibiting overly controlling behaviors, such as micromanagement • Showing insensitivity and abrasiveness toward others • Allowing stress to become overwhelming • Favoring self-interest over the company’s interest

As you can see, many of these factors are directly related to the leader’s EI. Indeed, as explained earlier, when it comes to leader derailment, lack of EI is much more detrimental and directly connected to failure than technical abilities and skills (Goleman, 2000; Luthans, 2002a).

7.6 The Importance of Communication Communication, the transfer of meaning from one person to another, is an essential quality of the effective leader. Because leaders spend the majority of their time communicating, they must focus not only on being heard but also on being understood. With all the choices for methods of communication—including traditional (memos, letters, meetings, presentations, face-to-face interactions) and emerging (instant messaging, e-mail, texting, social networks) forms—leaders often struggle to find the best way to communicate each message.

The Process of Organizational Communication The purpose of communication is to convey a message from a sender to a receiver. Interest- ingly, even with the advent of instant messaging, e-mail, and the like, the process of commu- nication has remained relatively consistent over time. In 1949 Shannon and Weaver defined seven elements that are still regarded as essential for the process of communication (a model of this process is shown in Figure 7.2): source, message encoding, channel, noise, receiver,

you83701_07_c07_195-230.indd 217 4/20/17 5:20 PM

218

Channel

Feedback

Sender

Noise source

Message Encoding message

Receiver

Message received

Message decoded

Section 7.6 The Importance of Communication

message decoding, and feedback loop. To communicate, a source (for our purposes, the leader) encodes a message and transmits it through a channel (method of communication) to a receiver (the follower), who then decodes the message to make sense of the information. Sometimes, a channel may contain noise that blocks or distorts the message. Examples of noise are language barriers, information overload, emotion, or perceptual problems. The final element of communication is the feedback loop. By obtaining feedback, the sender confirms that he or she has in fact transferred the desired message and that the receiver has properly decoded the message.

Figure 7.2: The communication process

The seven essential elements of the communication process.

Channel

Feedback

Sender

Noise source

Message Encoding message

Receiver

Message received

Message decoded

Barriers to Effective Communication Effective communication is inherently difficult. As mentioned above, many factors can inter- fere with a person’s ability to send, receive, or interpret a message. One such factor, informa- tion overload, deals with the amount of information a person is able to meaningfully process. People have a finite capacity for processing information, and the continual onslaught of infor- mation sent through methods such as e-mail, instant messages, social media, meetings, and phone calls places people at a higher risk of information overload. Another factor, called selec- tive perception, occurs when receivers process only the portions of the message that relate to their own needs, motivations, personal characteristics, and/or experiences. In this situation, the receiver skews the message to meet his or her reality. Emotions can also affect the way in which a person sends or receives messages. A person who comes to work angry, for example, may interpret a manager’s e-mail differently than a coworker who is having a good morn- ing. Finally, language barriers impede how we communicate. Even when communicating in the same language, people can attribute different meanings to the same words. Newly hired employees can also struggle to understand the slang and jargon used by veterans in the orga- nization. With so many different barriers to communication, it’s truly a miracle we are able to understand as much as we do!

you83701_07_c07_195-230.indd 218 4/20/17 5:20 PM

219

Section 7.6 The Importance of Communication

Key Functions of Organizational Communication From globalization to advances in technology to the troubled economic climate, the enor- mous changes and challenges faced by businesses today have made effective communication increasingly important to overall organizational performance. Although the primary function of communication is to affect receiver understanding, research suggests it does much more than this (Poole, 2010). For example, Neher (1997) emphasized the effect of communication on organizational and social aspects within the workplace over and above the basic exchange of information. Specifically, Neher drew attention to the role of communication in establish- ing order and control as well as its influence on functions such as problem solving, conflict management, negotiation, and bargaining. Similarly, Myers and Myers (1982) identified three primary functions of communication over and above that of message conveyance: coordina- tion and regulation of production activities, socialization of workers, and innovation.

Structure of Communication The structure of organizational communication can be very complicated. In large companies communication can involve hundreds or even thousands of workers using many different channels across a number of hierarchical levels. In the past, large bureaucratic organiza- tions relied almost exclusively on formal (e.g., downward or hierarchical), one-way methods of communication. They believed that workers who lacked a structured, controlled commu- nication process would be unable to obtain the information they needed to perform their jobs properly. Furthermore, these organizations feared that informal (e.g., lateral) methods of communication would create uncontrolled chaos and block the flow of information. However, it is important to note that no formal communication system can account for all of the pos- sible paths and directions of communication within an organization. Therefore, such systems are inherently limited. Indeed, some researchers have proposed that informal communica- tion is critical for managing and maintaining an organization’s culture (D’Aprix, 1996).

In addition to supporting an organization’s culture, informal processes can also make com- munication speedier and more effective than formal processes can through the establish- ment of communication networks. A communication network, also known as the grapevine, arises when workers establish lines of communication among themselves, including peers, members of both higher and lower hierarchical levels, and workers in different areas of the company. Figure 7.3 shows an example of a simple communication network.

A number of properties influence the way in which networks and the people within them work. First, network density compares the number of existing connections between network members with the total number that could possibly form. The sample network in Figure 7.3 is a dense network because almost all possible connections have been made. Second, networks can be described according to the strength of the relationships between members. Those who communicate more often will have stronger relationship ties, whereas those who seldom com- municate with others will have weak ties. Networks with many strongly tied workers will be more cohesive than those with weakly tied workers (Poole, 2010). Network centralization, the third property, is the number of people in charge of controlling the flow of communica- tion. In highly centralized networks, only a few members control the flow of communication. In decentralized networks (of which Figure 7.3 is an example), the opposite is true. Finally, network connectivity is the extent to which all members of a network are connected to each other, either directly or indirectly. In Figure 7.3 the sample network is highly connected.

you83701_07_c07_195-230.indd 219 4/20/17 5:20 PM

220

Employee

Manager

Executive

Coworker

Section 7.7 Direction of Communication

Interestingly, contrary to the notion that they are breeding grounds for rumor and gossip, informal networks have been found to channel communication as accurately as more formal methods (Monge & Contractor, 2003). Furthermore, employees who are actively involved in informal networks are more knowledgeable about their organization, better at improvising to solve problems, and better able to innovate (Albrecht & Hall, 1991; Bach, 1991; Bastien, 1992). Informal networks may demonstrate their effectiveness most clearly during times of turbu- lence and change, because they allow for the speedy development of solutions to problems and require no command and control structure to accomplish work (McPhee & Poole, 2000).

7.7 Direction of Communication Communication within an organization can flow vertically (from the leader to the follower and vice versa), laterally (from one peer to another), or diagonally (from a leader to a follower in another area of the organization and vice versa). Traditionally, organizations have placed greater emphasis on vertical communication, but that is no longer the case. As organizations have become more complex, so has their communication, making lateral and diagonal forms increasingly important.

Figure 7.3: Networking example

Effective communication depends on communication networks that establish open lines of discourse between all parties.

Employee

Manager

Executive

Coworker

you83701_07_c07_195-230.indd 220 4/20/17 5:20 PM

221

Section 7.7 Direction of Communication

Downward Vertical Communication Downward vertical communication, sometimes referred to as hierarchical communication, flows from a higher to a lower level of the organizational hierarchy. When we think of leader- ship communication, this is the type we typically think of. Leaders at all levels of the organi- zation use downward communication to share information, set goals, provide feedback, and reward or punish behavior. Surprisingly, although organizations engage in downward com- munication frequently, they generally do not do it well. Based on a survey of 30,000 employ- ees, Morgan and Schieman (1983) found that a majority of the workers felt their organization was ineffective at communicating down to them. The lowest level employees—those who probably received the least amount of communication—felt the most negative about the com- munication they did receive.

Organizations can improve downward communication in a number of ways. One relatively simple way is to provide employees with explanations as to why leaders made the decisions they did. In one study, employees were twice as likely to commit to a decision if they under- stood the reason behind it (Dvorak, 2007b). Another way to improve downward communi- cation is to try to counteract its one-way nature by encouraging followers to provide input and opinions. The best downward communication, then, occurs when a leader explains the reasons for decisions and gathers input from his or her employees.

Upward Vertical Communication Upward vertical communication flows from a lower to a higher level of a work group. Employees use this method to inform management of the status of projects, to express feed- back, and to alert management of goal attainment. Organizations have established a number of formal ways for employees to engage in upward communication, including employee sur- veys, grievance programs, suggestion boxes, and employee participation programs such as quality circles and team meetings.

As with downward communication, employee satisfaction with upward communication is quite low (Gibson & Hodgetts, 1991). There are a number of reasons for poor upward com- munication: Employees may fear reprisal for speaking their mind, managers may not pay ade- quate attention due to time constraints, and managers may steal employees’ ideas (McClel- land, 1988). Leaders need information and feedback from their followers in order to make more informed decisions; they must therefore create an environment in which followers feel safe engaging in upward communication.

Lateral Communication Lateral communication flows between peers at the same level of a work group. The trend to flatten the hierarchical structure of organizations has reduced the emphasis on strictly down- ward communication, resulting in increased importance of communication between peers. The rise of the work team and the emergence of virtual workers and geographically separated work groups has also mandated the use of lateral communication to promote the sharing of ideas, expertise, best practices, and lessons learned.

you83701_07_c07_195-230.indd 221 4/20/17 5:20 PM

222

Section 7.8 Special Issues and Challenges in Organizational Communication

Diagonal Communication Diagonal communication flows between managers and workers located in different parts of the business (Wilson, 1992). As communication has changed within the modern organiza- tion, diagonal communication has emerged as an important method of communication. The concept was originally introduced to address the communication challenges associated with new organizational formats, such as matrix and project-based organizations.

7.8 Special Issues and Challenges in Organizational Communication Think about how communication within organizations has changed over the past three decades. Several decades ago, it was relatively slow and involved a lot of physical effort, as managers made requests (and left a lot of messages), and employees searched for informa- tion (making false starts, traveling circuitous routes, hitting dead ends, and also leaving many messages). Managers’ main concern was sharing information through a formal top-down communication system. Today communication is not only much more interconnected and varied, but faster as well. Modern workers have a world of information at their fingertips; they can access libraries, newspapers, research publications, encyclopedias, and more from their computers instead of having to physically visit the library or wait for information to arrive by courier or in the mail.

Technological Changes Advanced information technology allows organizations unprecedented opportunities to openly and quickly com- municate and exchange ideas, which can enhance cre- ativity, innovation, customer satisfaction, and employee engagement. However, there are also problems with the excessive use of electronic media for communication. First, despite the ease of modern forms of communica- tion, being connected to one’s job 24 hours a day—as many of today’s employees are—can result in an overload of communication. Second, ongoing electronic communi- cation can upset work–life balance, because an employee with a company-issued cell phone is never really off the clock. Third, electronic communication threatens to vio- late employee privacy, because many devices today are equipped with a Global Positioning System (GPS) track- ing device, making employees’ whereabouts traceable at all times. Fourth, the risks of industrial espionage and intellectual property pirating are exacerbated by tech- nology and electronic communication. Finally, when electronic communication replaces richer media such as face-to-face interaction, leaders and employees can feel distant and estranged, making it harder to relate to each other and build trust.

Photos.com/Thinkstock

Communication is faster and more interconnected than ever before, thanks to advances in information technology. As a result, it has never been easier to exchange ideas that can lead to enhanced creativity and innovation.

you83701_07_c07_195-230.indd 222 4/20/17 5:20 PM

223

Section 7.8 Special Issues and Challenges in Organizational Communication

Similarly, social networking is a powerful tool for career development and organizational suc- cess. Research shows that the ties created through even the brief interactions typical of social networking can contribute valuable resources for employment, career advancement, and new knowledge transfer (Inkpen & Tsang, 2005; Montgomery, 1992, 1994). However, social net- working, especially when mediated by technology, presents the same challenges of electronic communication, including communication overload, work–life imbalance, estrangement, and violation of employee privacy and organizational intellectual property. For example, as part of their selection processes, many employers now routinely visit social networking websites and take into consideration the information that candidates choose to reveal on their pages and the friends they choose to associate with.

Cross-Cultural and Gender Differences Increasing diversity in the workplace poses its own set of unique communication challenges. Indeed, cross-cultural differences can shape our perceptions and interpretations of commu- nicated messages. On the other hand, contrary to common beliefs, gender differences in com- munication are not as prevalent (Aries, 1996). The very large within-group variations in men and women’s communication styles most likely account for the inconsistent and inconclusive research findings in this area (Reeder, 1996).

While some of the most recognized cross-cultural differences are covered in this section, this is by no means an exhaustive list of issues to consider.

Hofstede’s National Cultural Dimensions The national culture model (Hofstede, Hofstede, & Minkov, 2010) was established after Profes- sor Geert Hofstede and his research team analyzed value scores reported by IBM employees in 40 countries. Hofstede found that employees’ preferences in relation to six specific cultural dimensions could be used to distinguish countries and their values from one another. These six dimensions are power distance, individualism, masculinity, uncertainty avoidance, long- term orientation, and indulgence. Table 7.2 further defines and compares these dimensions.

As you can see from Table 7.2, the way societies relate to specific cultural dimensions can affect how that society communicates internally as well as externally. Consider, for example, how a businessperson from a culture with a low degree of uncertainty avoidance might dis- cuss a risky but potentially profitable endeavor with a partner from a culture that has a high degree of that same dimension. Or similarly, how a leader from a low power distance culture may not receive genuine input and feedback from his or her followers in a high power dis- tance culture.

Trompenaars’s Cultural Factors In a similar attempt at understanding cultural differences, Dutch organizational theorist Fons Trompenaars identified seven cultural factors that can act as a guideline for cross-cultural communication. Table 7.3 provides a breakdown of each of these seven factors.

you83701_07_c07_195-230.indd 223 4/20/17 5:20 PM

224

Section 7.8 Special Issues and Challenges in Organizational Communication

You may notice some similarities between Trompenaars’s and Hofstede’s cultural dimen- sions. However, an important distinction is that Trompenaars’s work was based on more diverse samples, while Hofstede’s work was based primarily on employees of one company.

Trompenaars’s Four Diversity Cultures Trompenaars also developed another model for understanding cultural differences, known as the four diversity cultures. Rather than comparing cultures over a range of seven differ- ences, however, the four diversity cultures model establishes two major dimensions: person/

Table 7.2: National cultural dimensions

Dimension Description Cultures with high degree of dimension

Cultures with low degree of dimension

Power distance The degree to which members of a society accept and expect that power is distributed unequally

Accept a hierarchical order in which every- body has a place and which needs no further justification

Strive to equalize the distribution of power and demand justifica- tion for inequalities of power

Individualism The degree to which members of a society depend on one another to provide care; can be detected in whether people define their self- image as “I” or as “we”

Prefer a loosely knit social framework in which individuals are expected to take care of only themselves and their immediate families

Prefer a tightly knit societal framework in which individuals can expect their relatives or members of a par- ticular in-group to look after them in exchange for unquestioning loyalty

Masculinity The degree to which a society is more competitive or consensus-oriented

Prefer achievement, heroism, assertiveness, and material rewards for success

Prefer cooperation, modesty, caring for the weak, and quality of life

Uncertainty avoidance The degree to which members of a soci- ety feel comfortable with uncertainty and ambiguity

Maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas

Maintain a more relaxed attitude in which practice counts more than principles

Long-term orientation The degree to which a society maintains links with its own past while dealing with the chal- lenges of the present and the future

Encourage careful use of resources and modern education as a way to prepare for the future

Prefer to maintain established traditions and norms while view- ing societal change with a level of distrust

Indulgence The degree to which a society allows for the gratification of needs and drives

Allow relatively free gratification of basic and natural human drives related to enjoy- ing life and having fun

Suppress gratification of needs and regulate it by means of strict social norms

Source: From “Geert Hofstede: National Culture,” by Hofstede Centre, n.d. (http://geert-hofstede.com/national-culture.html).

you83701_07_c07_195-230.indd 224 4/20/17 5:20 PM

http://geert-hofstede.com/national-culture.html

225

Section 7.8 Special Issues and Challenges in Organizational Communication

Table 7.3: National culture differences

Differences Description Cultures with a high degree of Trait A

Cultures with a high degree of Trait B

Trait A: universalism vs. Trait B: particularism

The degree to which a culture applies ideas and practices

Focus on broad, general rules that can be applied to all situations; tend to be more rational and task focused

Focus on applying rules on a case-by- case basis; tend to place greater empha- sis on relationships

Trait A: individualism vs. Trait B: communitarianism

The degree to which members of a culture regard themselves as part of their community

People regard themselves primar- ily as individuals; focus on individual contributions and achievements

People regard them- selves primarily as part of a group; focus on community first

Trait A: neutral vs. Trait B: affective

The degree to which our interactions should include emotion

Typically prefer objec- tive and/or detached interactions

Expect emotion to be part of all interactions, including in business

Trait A: specific vs. Trait B: diffuse

The degree to which the whole person is involved in an interaction

Tend to adhere to a specific relationship, such as one pre- scribed by a contract

Emphasize the importance of build- ing a relationship that encompasses more than the immediate goal

Trait A: achievement vs. Trait B: ascription

The way in which a society acknowledges status

Acknowledge status based on recent accomplishments and record

Acknowledge status based on birth, kin- ship, gender, age, connections, and educational record

Trait A: sequential vs. Trait B: synchronic

The way in which society views time

View time as moving along a straight line; focus on the pres- ent and plans for the future

View time as moving in a circle; past and present are consid- ered alongside future possibilities

Trait A: internal vs. Trait B: external

The way in which society views its relationship to the environment

See motivation, val- ues, and other major aspects affecting individuals as coming from within

See the environment as affecting individual behaviors; nature is something to be feared or emulated

Source: From Riding the Wave of Culture: Understanding Diversity in Global Business (3rd ed.), by F. Trompenaars and C. Hampden-Turner, 2012, New York, NY: McGraw-Hill.

informal style vs. task/formal style, and egalitarian/decentralized vs. hierarchical/central- ized. Depending on how a culture aligns with each of these dimensions, it can fall into one of four culture types: incubator, guided missile, family, or Eiffel Tower. Figure 7.4 provides a visual representation of how these dimensions and culture types are divided, as well as a closer look at the characteristics of each of the four types.

you83701_07_c07_195-230.indd 225 4/20/17 5:20 PM

226

- Person oriented - Power of the individual - Self-realization - Commitment to oneself - Professional recognition

Incubator

- Task orientation - Power of knowledge/expertise - Commitment to (tasks) - Management by objectives - Pay for performance

Guided missile

Egalitarian/decentralized

Person/ informal style

Task/ formal style

- Power of orientation - Personal relationships - Entrepreneurial - Affinity/trust - Power of person

Family

- Role orientation - Power of position/role - Job description/evaluation - Rules and procedures - Order and predictability

Eiffel Tower

Section 7.8 Special Issues and Challenges in Organizational Communication

These culture types have notable organizational implications. For example, leaders need to be aware of the type of culture in which they operate and must adapt their leadership style accordingly. A leadership style that relies on formal power, authority, and structure may be effective in Eiffel Tower cultures but may be overbearing and counterproductive in an incuba- tor culture. Similarly, many North American multinationals attempt to introduce guided mis- sile principles in countries that are predominantly hierarchical and reliant on personal rela- tionships (family cultures). This misfit tends to create conflict and promote an “us-and-them” mentality between leaders from the parent company and locals who may perceive them, at best, as culturally naive or incompetent and, at worst, as condescending and imposing on their cultural heritage.

Figure 7.4: Trompenaars’ four diversity cultures

- Person oriented - Power of the individual - Self-realization - Commitment to oneself - Professional recognition

Incubator

- Task orientation - Power of knowledge/expertise - Commitment to (tasks) - Management by objectives - Pay for performance

Guided missile

Egalitarian/decentralized

Person/ informal style

Task/ formal style

- Power of orientation - Personal relationships - Entrepreneurial - Affinity/trust - Power of person

Family

- Role orientation - Power of position/role - Job description/evaluation - Rules and procedures - Order and predictability

Eiffel Tower

Find Out for Yourself: Culture and Leader Effectiveness: The GLOBE Study

The Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Program studies the intersection between leader characteristics and many of the cultural dimensions discussed in this section. Visit the following website to read a summary of the GLOBE study.

Culture and Leader Effectiveness: The GLOBE Study

What Did You Learn?

1. In which “country cluster” does the country in which you live fall? 2. To which leadership style(s) does your country relate most? Least? Were you surprised

by these results?

you83701_07_c07_195-230.indd 226 4/20/17 5:20 PM

http://www.inspireimagineinnovate.com/PDF/GLOBEsummary-by-Michael-H-Hoppe.pdf

227

Summary and Conclusion

Although leadership and communication are critical for organizational success, they are two of the most difficult organizational processes to understand, develop, and effectively manage. Organizational decision makers are strongly advised to give these two dimensions of organizational success special attention and to leverage them as a sustainable source of competitive advantage. This is because—unlike many other tangible resources such as buildings, machinery, equipment, or even state-of-the-art technology, which are becoming easier for competitors to copy and imitate—effective leadership and communication are unique for each organization. One size does not fit all. Every organization has to incremen- tally develop its own leadership and communication processes, which should fit its mission, vision, values, and strategic orientation. The approaches in this chapter offer a starting point for thinking more strategically about leadership and communication. Whether you are a leader or a follower in a large or midsize organization or are considering starting your own business or working for a small business, leadership and communication should be in the forefront as you make decisions for your organization.

Consider This: Adapting Your Communication Style to Cross-Cultural Differences

Based on what you have learned in this section, how would you vary your verbal and nonver- bal communication approaches in order to communicate each of the following messages to one of your employees if you were leading a team in Canada, France, India, Switzerland, Brazil, and Saudi Arabia?

• “You are a superior performer. Well done!” • “Your performance does not meet expectations.” • “You need to express your opinions more assertively.” • “You need to stop asking for advice every step of the way and start thinking more

independently.” • “We have to let you go.” • “I am very interested in your ideas and opinions.”

achievement-oriented leadership A leadership style that sets challenging goals for employees and emphasizes high perfor- mance expectations.

authentic leadership theory A long-term developmental process that draws from the leader’s life experiences, psychological capi- tal (hope, efficacy, resilience, and optimism), moral perspective, and a highly supportive organizational climate. The result of this

process is higher self-awareness, relational transparency, internalized moral perspective, and balanced processing, which in turn helps the leader better regulate his or her behav- iors toward continuous self-development.

behavioral theories of leadership Theo- ries that focus more on leaders’ observable behaviors than on their traits, suggesting that leadership is attainable by anyone with the correct training and experiences.

Key Terms

you83701_07_c07_195-230.indd 227 4/20/17 5:20 PM

228

Summary and Conclusion

charismatic leader A leader who chal- lenges the status quo, rallies followers around an inspirational vision, empowers followers, supports followers’ needs, and takes personal risks to achieve success.

coercive power Power that is based on fear of punishment.

communication The transfer of meaning from one person to another.

communication network Also known as the grapevine, a network that arises when workers establish lines of communication among themselves, including peers, mem- bers of both higher and lower hierarchical levels, and workers in different areas of the company.

consideration A people-centric leadership style that includes relationship behaviors expressed as displays of trust, camaraderie, and regard for workers’ feelings.

contingency theories of leadership Theo- ries that address the complex ways in which situational factors interact with a leader’s style and impact his or her effectiveness.

diagonal communication Communication that flows between managers and workers located in different parts of the business.

directive leadership A leadership style that provides task structure by instructing employees what work to do and when to complete it.

downward vertical communica- tion Sometimes referred to as hierarchical communication, messages that flow from a higher to a lower level of the organizational hierarchy.

emotional intelligence (EI) Self-awareness and the ability to detect others’ emotions and to manage one’s own emotions.

ethical leadership theory An emerging theory that emphasizes integrity and altru- ism of the leader, and collective motivation and encouragement for the followers.

expert power Power that stems from a leader’s special skills, knowledge, and expertise.

Fiedler’s contingency model A contin- gency model of leadership that categorizes leaders as either task oriented or relation- ship oriented and maintains that the effec- tiveness of either type depends on the situ- ation and the amount of control the leader has over it.

idiosyncrasy credit The latitude and dis- cretion to deviate from expectations based on positive past encounters and conformity to norms.

implicit leadership theory (ILT) A lead- ership theory that defines leadership from the follower’s point of view; leaders who fit their followers’ model of their ideal leader are likely to be more effective.

initiating structure A task-centric leader- ship style in which the leader provides clear guidance and structure to help employees achieve specific goals.

lateral communication Communication that flows between peers at the same level of a work group.

leader–member exchange theory (LMX) A leadership theory that emphasizes the way in which the leader–follower rela- tionship affects the leadership process.

leadership derailment The process by which a leader displays increasingly ineffec- tive behavior.

legitimate power Power that stems from one’s job title or position within the organization.

you83701_07_c07_195-230.indd 228 4/20/17 5:20 PM

229

Summary and Conclusion

network centralization The number of people in charge of controlling the flow of communication.

network connectivity The extent to which members of a network are connected to each other, either directly or indirectly.

network density The number of connec- tions that exist between network members in relation to the total number that could possibly form.

participative leadership A leadership style that involves employees in decisions that affect their work.

path–goal theory A theory that proposes four leadership styles leaders can utilize to motivate employees to achieve their goals: directive, supportive, participative, and achievement oriented.

power The capacity for one person to influ- ence the behaviors of another.

referent power Power that develops out of admiration for and the desire to be like the leader, regardless of formal level of leader- ship or actual relationship to follower.

reward power Influence through positive rewards.

spiritual leadership theory An emerging theory that emphasizes intrinsic motivation of the followers through a sense of member- ship or community and a sense of calling.

supportive leadership A leadership style that displays concern for the best interest of the employees.

trait theories Theories that assume leader- ship has a biological origin and that leader- ship is an innate quality that only a very few possess.

transactional leadership A framework in which leaders use rewards and punishment to guide and motivate followers along a path toward established goals.

transformational leadership A framework in which leaders are concerned with improv- ing followers’ performance and motivation and developing them to their fullest poten- tial through inspirational motivation, ideal- ized influence, intellectual stimulation, and individualized consideration.

upward vertical communication Commu- nication that flows from a lower to a higher level of a work group.

you83701_07_c07_195-230.indd 229 4/20/17 5:20 PM

you83701_07_c07_195-230.indd 230 4/20/17 5:20 PM