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Leader–Member Exchange Theory

DESCRIPTION

Most of the leadership theories discussed thus far in this book have emphasized leadership from the point of view of the leader (e.g., trait approach, skills approach, and style approach) or the follower and the context (e.g., Situational Leadership and path–goal theory). Leader– member exchange (LMX) theory takes still another approach and con- ceptualizes leadership as a process that is centered on the interactions between leaders and followers. As Figure 7.1 illustrates, LMX theory makes the dyadic relationship between leaders and followers the focal point of the leadership process. Before LMX theory, researchers treated leadership as something leaders did toward all of their followers. This assumption implied that leaders treated followers in a collective way, as a group, using an average leadership style. LMX theory challenged this assumption and directed researchers’ attention to the differences that might exist between the leader and each of the leader’s followers.

Early Studies

In the first studies of exchange theory, which was then called vertical dyad linkage (VDL) theory, researchers focused on the nature of the vertical linkages leaders formed with each of their followers (Figure 7.2). A leader’s relationship to the work unit as a whole was viewed as a series of vertical dyads (Figure 7.3).

Leader-Member Exchange Theory

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In assessing the characteristics of these vertical dyads, researchers found two general types of linkages (or relationships): those that were based on expanded and negotiated role responsibilities (extra-roles), which were called the in- group, and those that were based on the formal employment contract (defined roles), which were called the out-group (Figure 7.4). Within an organizational work unit, followers become a part of the in-group or the out-group based on how well they work with the leader and how well the leader works with them. Personality and other personal characteristics are related to this process (Dansereau, Graen, & Haga, 1975). In addition, membership in one group or the other is based on how followers involve themselves in expanding their role responsibilities with the leader (Graen, 1976). Followers who are interested in negotiating with the leader what they are willing to do for the group can become a part of the in-group. These negotiations involve exchanges in which followers do certain activities that go beyond their formal job descriptions, and the leader, in turn, does more for these followers. If followers are not interested in taking on new and dif- ferent job responsibilities, they become a part of the out-group. Followers in the in-group receive more information, influence, confidence, and concern from their leaders than do out-group followers (Dansereau et al., 1975). In addition, they are more dependable, more highly involved,

LeaderFollower DyadicRelationship

Figure 7.1 Dimensions of Leadership

SOURCE: Reprinted from Leadership Quarterly, 6(2), G. B. Graen & M. Uhl-Bien, “Relationship-Based Approach to Leadership: Development of Leader–Member Exchange (LMX) Theory of Leadership Over 25 Years: Applying a Multi-Level, Multi-Domain Perspective” (pp. 219–247), Copyright © 1995, with permission from Elsevier.

NOTE: LMX theory was first described 28 years ago in the works of Dansereau, Graen, and Haga (1975), Graen (1976), and Graen and Cashman (1975). Since it first appeared, it has undergone several revisions, and it continues to be of interest to researchers who study the leadership process.

In and Out Functions Out-Group Members

Chapter 7 Leader–Member Exchange Theory 139

and more communicative than out-group followers (Dansereau et al., 1975). Whereas in-group members do extra things for the leader and the leader does the same for them, followers in the out-group are less compatible with the leader and usually just come to work, do their job, and go home.

Figure 7.2 The Vertical Dyad

Dyadic Relationship

NOTE: The leader (L) forms an individualized working relationship with each of his or her followers (F). The exchanges (both content and process) between the leader and follower define their dyadic relationship.

Figure 7.3 Vertical Dyads

L L L

F A F B F Z

NOTE: The leader (L) forms special relationships with all of his or her followers (F). Each of these relationships is special and has its own unique characteristics.

What is LMX About? In-Groups and Out-Groups

140 LEADERSHIP THEORY AND PRACTICE

Later Studies

After the first set of studies, there was a shift in the focus of LMX theory. Whereas the initial studies of this theory addressed primarily the nature of the differences between in-groups and out-groups, a subsequent line of research addressed how LMX theory was related to organizational effectiveness. Specifically, these studies focus on how the quality of leader–member exchanges was related to positive outcomes for leaders, followers, groups, and the organization in general (Graen & Uhl-Bien, 1995). Researchers found that high-quality leader–member exchanges produced less employee turnover, more positive performance evaluations, higher fre- quency of promotions, greater organizational commitment, more desirable work assignments, better job attitudes, more attention and support from the leader, greater participation, and faster career progress over 25 years (Graen & Uhl-Bien, 1995; Liden, Wayne, & Stilwell, 1993). In a meta-analysis of 164 LMX studies, Gerstner and Day (1997) found that LMX was consistently related to member job performance, satisfaction (overall and supervisory), commitment, role conflict and clarity, and turnover

Figure 7.4 In-Groups and Out-Groups

F A

F B

F C

+3+3 +3 +3 +3 +3

F X

F Y

F Z

0 0 0 0 0 0

IN-GROUP OUT-GROUP

NOTE: A leader (L) and his or her followers (F) form unique relationships. Relationships within the in-group are marked by mutual trust, respect, liking, and reciprocal influence. Relationships within the out-group are marked by formal communication based on job descriptions. Plus 3 is a high-quality relationship, and zero is a stranger.

Examining Outcomes with LMX

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intentions. In addition, they found strong support in these studies for the psychometric properties of the LMX 7 Questionnaire. For purposes of research, they highlighted the importance of measuring LMX from the perspective of both the leader and the follower. Based on a review of 130 studies of LMX research conducted since 2002, Anand, Hu, Liden, and Vidyarthi (2011) found that interest in studying leader–member exchange has not diminished. A large majority of these studies (70%) examined the antecedents and outcomes of leader–member exchange. The research trends show increased attention to the context surrounding LMX relationships (e.g., group dynamics), analyzing leader–member exchange from individual and group levels, and studying leader–member exchange with non-U.S. samples. For example, using a sample of employees in a variety of jobs in Israeli orga- nizations, Atwater and Carmeli (2009) examined the connection between employees’ perceptions of leader–member exchange and their energy and creativity at work. They found that perceived high-quality leader–member exchange was positively related to feelings of energy in employees, which, in turn, was related to greater involvement in creative work. LMX theory was not directly associated with creativity, but it served as a mechanism to nurture people’s feelings, which then enhanced their creativity. Ilies, Nahrgang, and Morgeson (2007) did a meta-analysis of 51 research studies that examined the relationship between LMX and employee citizen- ship behaviors. Citizenship behaviors are discretionary employee behaviors that go beyond the prescribed role, job description, or reward system (Katz, 1964; Organ, 1988). They found a positive relationship between the quality of leader–member relationships and citizenship behaviors. In other words, followers who had higher-quality relationships with their leaders were more likely to engage in more discretionary (positive “payback”) behaviors that benefited the leader and the organization. Researchers have also studied how LMX theory is related to empowerment. Harris, Wheeler, and Kacmar (2009) explored how empowerment moder- ates the impact of leader–member exchange on job outcomes such as job satisfaction, turnover, job performance, and organizational citizenship behaviors. Based on two samples of college alumni, they found that empow- erment and leader–member exchange quality had a slight synergistic effect on job outcomes. The quality of leader–member exchange mattered most for employees who felt little empowerment. For these employees, high-quality leader–member exchange appeared to compensate for the drawbacks of not being empowered.

Empowerment Through LMX Empowering Employees

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In essence, the aforementioned findings clearly illustrate that organizations stand to gain much from having leaders who can create good working rela- tionships. When leaders and followers have good exchanges, they feel better and accomplish more, and the organization prospers.

Leadership Making

Research of LMX theory has also focused on how exchanges between leaders and followers can be used for leadership making (Graen & Uhl-Bien, 1991). Leadership making is a prescriptive approach to leadership emphasizing that leaders should develop high-quality exchanges with all of their followers rather than just a few. It attempts to make every follower feel as if he or she is a part of the in-group and, by so doing, avoids the inequities and negative implications of being in an out-group. In general, leadership making promotes partnerships in which the leader tries to build effective dyads with all followers in the work unit (Graen & Uhl-Bien, 1995). In addition, leadership making suggests that leaders can create networks of partnerships throughout the organization, which will benefit the organization’s goals and the leader’s own career progress. Graen and Uhl-Bien (1991) suggested that leadership making develops pro- gressively over time in three phases: (1) the stranger phase, (2) the acquaintance phase, and (3) the mature partnership phase (Table 7.1). During Phase 1, the stranger phase, the interactions in the leader–follower dyad generally are rule bound, relying heavily on contractual relationships. Leaders and followers relate to each other within prescribed organizational roles. They have lower-quality exchanges, similar to those of out-group members discussed earlier in the chap- ter. The follower complies with the formal leader, who has hierarchical status for the purpose of achieving the economic rewards the leader controls. The motives of the follower during the stranger phase are directed toward self- interest rather than toward the good of the group (Graen & Uhl-Bien, 1995). In a study of the early stages of leader–member relationship development, Nahrgang, Morgeson, and Ilies (2009) found that leaders look for followers who exhibit enthusiasm, participation, gregariousness, and extraversion. In contrast, followers look for leaders who are pleasant, trusting, cooperative, and agreeable. Leader extraversion did not influence relationship quality for the followers, and follower agreeableness did not influence relationship qual- ity for the leaders. A key predictor of relationship quality for both leaders and followers was behaviors such as performance. Phase 2, the acquaintance phase, begins with an offer by the leader or the follower for improved career-oriented social exchanges, which involve sharing more resources and personal or work-related information. It is a testing period

Leader Follower Interaction Changing Relationships

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for both the leader and the follower to assess whether the follower is interested in taking on more roles and responsibilities and to assess whether the leader is willing to provide new challenges for followers. During this time, dyads shift away from interactions that are governed strictly by job descriptions and defined roles and move toward new ways of relating. As measured by LMX theory, it could be said that the quality of their exchanges has improved to medium quality. Successful dyads in the acquaintance phase begin to develop greater trust and respect for each other. They also tend to focus less on their own self-interests and more on the purposes and goals of the group. Phase 3, mature partnership, is marked by high-quality leader–member exchanges. People who have progressed to this stage in their relationships experience a high degree of mutual trust, respect, and obligation toward each other. They have tested their relationship and found that they can depend on each other. In mature partnerships, there is a high degree of reciprocity between leaders and followers: Each affects and is affected by the other. For example, in a study of 75 bank managers and 58 engineering managers, Schriesheim, Castro, Zhou, and Yammarino (2001) found that good leader– member relations were more egalitarian and that influence and control were more evenly balanced between the supervisor and the follower. In addition, during Phase 3, members may depend on each other for favors and special assistance. For example, leaders may rely on followers to do extra assignments, and followers may rely on leaders for needed support or encouragement. The point is that leaders and followers are tied together in productive ways that go well beyond a traditional hierarchically defined work relationship. They

Relationships Mature Partnership

Table 7.1 Phases in Leadership Making

Phase 1 Stranger

Phase 2 Acquaintance

Phase 3 Partnership

Roles Scripted Tested Negotiated

Influences One way Mixed Reciprocal

Exchanges Low quality Medium quality High quality

Interests Self Self and other Group Time

SOURCE: Adapted from “Relationship-Based Approach to Leadership: Development of Leader–Member Exchange (LMX) Theory of Leadership Over 25 Years: Applying a Multi- Level, Multi-Domain Perspective,” by G. B. Graen and M. Uhl-Bien, 1995, Leadership Quarterly, 6(2), 231.

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have developed an extremely effective way of relating that produces positive outcomes for themselves and the organization. In effect, partnerships are transformational in that they assist leaders and followers in moving beyond their own self-interests to accomplish the greater good of the team and orga- nization (see Chapter 8). The benefits for employees who develop high-quality leader–member rela- tionships include preferential treatment, increased job-related communication, ample access to supervisors, and increased performance-related feedback (Harris et al., 2009). The disadvantages for those with low-quality leader– member relationships include limited trust and support from supervisors and few benefits outside the employment contract (Harris et al., 2009). To evaluate leader–member exchanges, researchers typically use a brief ques- tionnaire that asks leaders and followers to report on the effectiveness of their working relationships. The questionnaire assesses the degree to which respondents express respect, trust, and obligation in their exchanges with others. At the end of this chapter, a version of the LMX questionnaire is provided for you to take for the purpose of analyzing some of your own leader–member relationships.

HOW DOES LMX THEORY WORK?

LMX theory works in two ways: It describes leadership, and it prescribes leadership. In both instances, the central concept is the dyadic relationship that a leader forms with each of the leader’s followers. Descriptively, LMX theory suggests that it is important to recognize the existence of in-groups and out-groups within a group or an organization. The differences in how goals are accomplished by in-groups and out-groups are substantial. Working with an in-group allows a leader to accomplish more work in a more effective manner than he or she can accomplish work- ing without one. In-group members are willing to do more than is required in their job description and look for innovative ways to advance the group’s goals. In response to their extra effort and devotion, leaders give them more responsibilities and more opportunities. Leaders also give in-group members more of their time and support. Out-group members act quite differently than in-group members. Rather than trying to do extra work, out-group members operate strictly within their prescribed organizational roles. They do what is required of them but nothing more. Leaders treat out-group members fairly and according to the formal contract, but they do not give them special attention. For their efforts,

Chapter 7 Leader–Member Exchange Theory 145

out-group members receive the standard benefits as defined in the job description.

Prescriptively, LMX theory is best understood within the leadership-making model of Graen and Uhl-Bien (1991). Graen and Uhl-Bien advocated that leaders should create a special relationship with all followers, similar to the relationships described as in-group relationships. Leaders should offer each follower the opportunity to take on new roles and responsibilities. Further- more, leaders should nurture high-quality exchanges with their followers. Rather than focusing on the differences between in-group and out-group members, the leadership-making model suggests that leaders should look for ways to build trust and respect with all of their followers, thus making the entire work unit an in-group. In addition, leaders should look beyond their own work unit and create high-quality partnerships with people throughout the organization.

Whether descriptive or prescriptive, LMX theory works by focusing our attention on the special, unique relationship that leaders can create with others. When these relationships are of high quality, the goals of the leader, the followers, and the organization are all advanced.

STRENGTHS

LMX theory makes several positive contributions to our understanding of the leadership process. First, it is a strong descriptive theory. Intuitively, it makes sense to describe work units in terms of those who contribute more and those who contribute less (or the bare minimum) to the organization. Anyone who has ever worked in an organization has felt the presence of in-groups and out-groups. Despite the potential harm of out-groups, we all know that leaders have special relationships with certain people who do more and get more. We may not like this because it seems unfair, but it is a reality, and the LMX theory has accurately described this situation. LMX theory validates our experience of how people within organizations relate to each other and the leader. Some contribute more and receive more; others contribute less and get less.

Second, LMX theory is unique because it is the only leadership approach that makes the concept of the dyadic relationship the centerpiece of the leadership process. Other approaches emphasize the characteristics of lead- ers, followers, contexts, or a combination of these, but none of them addresses the specific relationships between the leader and each follower. LMX theory

Leadership and Communication

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underscores that effective leadership is contingent on effective leader– member exchanges. Third, LMX theory is noteworthy because it directs our attention to the importance of communication in leadership. The high-quality exchanges advocated in LMX theory are inextricably bound to effective communica- tion. Communication is the vehicle through which leaders and followers create, nurture, and sustain useful exchanges. Effective leadership occurs when the communication of leaders and followers is characterized by mutual trust, respect, and commitment. Fourth, LMX theory provides an important alert for leaders. It warns leaders to avoid letting their conscious or unconscious biases influence who is invited into the in-group (e.g., biases regarding race, gender, ethnicity, reli- gion, or age). The principles outlined in LMX theory serve as a good reminder for leaders to be fair and equal in how they approach each of their followers. Finally, a large body of research substantiates how the practice of LMX the- ory is related to positive organizational outcomes. In a review of this research, Graen and Uhl-Bien (1995) pointed out that leader–member exchange is related to performance, organizational commitment, job climate, innovation, organizational citizenship behavior, empowerment, procedural and distribu- tive justice, career progress, and many other important organizational vari- ables. By linking the use of LMX theory to real outcomes, researchers have been able to validate the theory and increase its practical value.

CRITICISMS

LMX theory also has some limitations. First, on the surface, leader–member exchange in its initial formulation (vertical dyad linkage theory) runs coun- ter to the basic human value of fairness. Throughout our lives, beginning when we are very young, we are taught to try to get along with everyone and to treat everyone equally. We have been taught that it is wrong to form in- groups or cliques because they are harmful to those who cannot be a part of them. Because LMX theory divides the work unit into two groups and one group receives special attention, it gives the appearance of discrimination against the out-group. Our culture is replete with examples of people of different genders, ages, cultures, and abilities who have been discriminated against. Although LMX theory was not designed to do so, it supports the development of privileged

Attribution Biases

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groups in the workplace. In so doing, it appears unfair and discriminatory. Furthermore, as reported by McClane (1991), the existence of in-groups and out-groups may have undesirable effects on the group as a whole. Whether LMX theory actually creates inequalities is questionable (cf. Harter & Evanecky, 2002; Scandura, 1999). If a leader does not intentionally keep out- group members “out,” and if they are free to become members of the in-group, then LMX theory may not create inequalities. However, the theory does not elaborate on strategies for how one gains access to the in-group if one chooses to do so. Furthermore, LMX theory does not address other fairness issues, such as fol- lowers’ perceptions of the fairness of pay increases and promotion opportunities (distributive justice), decision-making rules (procedural justice), or communi- cation of issues within the organization (interactional justice) (Scandura, 1999). There is a need for further research on how these types of fairness issues affect the development and maintenance of LMX relationships. A second criticism of LMX theory is that the basic ideas of the theory are not fully developed. For example, the theory does not fully explain how high-quality leader–member exchanges are created (Anand et al., 2011). In the early studies, it was implied that they were formed when a leader found certain followers more compatible in regard to personality, interpersonal skills, or job competencies, but these studies never described the relative importance of these factors or how this process worked (Yukl, 1994). Research has suggested that leaders should work to create high-quality exchanges with all followers, but the guidelines for how this is done are not clearly spelled out. For example, the model on leadership making highlights the importance of role making, incremental influence, and type of reciproc- ity (see Table 7.1), but it does not explain how these concepts function to build mature partnerships. Similarly, the model strongly promotes building trust, respect, and obligation in leader–follower relationships, but it does not describe the means by which these factors are developed in relationships. Based on an examination of 147 studies of leader–member exchange, Schriesheim, Castro, and Cogliser (1999) concluded that improved theoriza- tion about leader–member exchange and its basic processes is needed. Simi- larly, in a review of the research on relational leadership, Uhl-Bien, Maslyn, and Ospina (2012) point to the need for further understanding of how high- and low-quality relationships develop in leader–member exchange. Although many studies have been conducted on leader–member exchange, these studies have not resulted in a clear, refined set of definitions, concepts, and proposi- tions about the theory.

NGO Leadership

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A third criticism of the theory is that researchers have not adequately explained the contextual factors that may have an impact on LMX relation- ships (Anand et al., 2011). Since leader–member exchange is often studied in isolation, researchers have not examined the potential impact of other vari- ables on LMX dyads. For example, workplace norms and other organizational culture variables are likely to influence leader–member exchange. There is a need to explore how the surrounding constellations of social networks influ- ence specific LMX relationships and the individuals in those relationships. Finally, questions have been raised about the measurement of leader– member exchanges in LMX theory (Graen & Uhl-Bien, 1995; Schriesheim, Castro, & Cogliser, 1999; Schriesheim, Castro, Zhou, et al., 2001). For example, no empirical studies have used dyadic measures to analyze the LMX process (Schriesheim, Castro, Zhou, et al., 2001). In addition, leader–member exchanges have been measured with different versions of leader–member exchange scales and with different levels of analysis, so the results are not always directly comparable. Furthermore, the content validity and dimensionality of the scales have been questioned (Graen & Uhl-Bien, 1995; Schriesheim, Castro, Zhou, et al., 2001).

APPLICATION

Although LMX theory has not been packaged in a way to be used in stan- dard management training and development programs, it offers many insights that leaders could use to improve their own leadership behavior. Foremost, LMX theory directs leaders to assess their leadership from a relationship perspective. This assessment will sensitize leaders to how in- groups and out-groups develop within their own organization. In addition, LMX theory suggests ways in which leaders can improve their organization by building strong leader–member exchanges with all of their followers.

The ideas set forth in LMX theory can be used by leaders at all levels within an organization. For example, LMX theory could be used to explain how CEOs develop special relationships with select individuals in upper manage- ment to develop new strategic and tactical corporate goals. A presidential cabinet is a good example of this. A U.S. president will handpick the 15 people that serve as his or her closest advisers. The cabinet includes the vice president and the heads of 15 executive departments—the secretaries of the Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs, as well

Using LMX

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as the attorney general. These individuals, in turn, run their own departments in accordance with the goals and philosophy of the president. On a lower level, LMX theory could be used to explain how line managers in a manufacturing plant use a select few workers to accomplish the produc- tion quotas of their work unit. The point is that the ideas presented in LMX theory are applicable throughout organizations. In addition, the ideas of LMX theory can be used to explain how individuals create leadership networks throughout an organization to help them accom- plish work more effectively (Graen & Scandura, 1987). A person with a network of high-quality partnerships can call on many people to help solve problems and advance the goals of the organization. LMX theory can also be applied in different types of organizations. It applies in volunteer settings as well as traditional business, education, and government settings. Imagine a community leader who heads a volunteer program that assists older adults. To run the program effectively, the leader depends on a few of the volunteers who are more dependable and committed than the rest of the volunteers. This process of working closely with a small cadre of trusted volunteers is explained by the principles of LMX theory. Similarly, a manager in a traditional business setting might use certain indi- viduals to achieve a major change in the company’s policies and procedures. The way the manager goes about this process is explicated in LMX theory. In summary, LMX theory tells us to be aware of how we relate to our fol- lowers. It tells us to be sensitive to whether some followers receive special attention and some followers do not. In addition, it tells us to be fair to all followers and allow each of them to become as involved in the work of the unit as they want to be. LMX theory tells us to be respectful and to build trusting relationships with all of our followers, recognizing that each follower is unique and wants to relate to us in a special way.

CASE STUDIES

In the following section, three case studies (Cases 7.1, 7.2, and 7.3) are presented to clarify how LMX theory can be applied to various group set- tings. The first case is about the creative director at an advertising agency, the second is about a production manager at a mortgage company, and the third is about the leadership of the manager of a district office of the Social Security Administration. After each case, there are questions that will help you analyze it, using the ideas from LMX theory.

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CASE 7.1

His Team Gets the Best Assignments Carly Peters directs the creative department of the advertising agency of Mills, Smith, & Peters. The agency has about 100 employees, 20 of whom work for Carly in the creative department. Typically, the agency main- tains 10 major accounts and a number of smaller accounts. It has a repu- tation for being one of the best advertising and public relations agencies in the country.

In the creative department, there are four major account teams. Each is led by an associate creative director, who reports directly to Carly. In addi- tion, each team has a copywriter, an art director, and a production artist. These four account teams are headed by Jack, Terri, Julie, and Sarah.

Jack and his team get along really well with Carly, and they have done excellent work for their clients at the agency. Of all the teams, Jack’s team is the most creative and talented and the most willing to go the extra mile for Carly. As a result, when Carly has to showcase accounts to upper management, she often uses the work of Jack’s team. Jack and his team members are comfortable confiding in Carly and she in them. Carly is not afraid to allocate extra resources to Jack’s team or to give them free rein on their accounts because they always come through for her.

Terri’s team also performs well for the agency, but Terri is unhappy with how Carly treats her team. She feels that Carly is not fair because she favors Jack’s team. For example, Terri’s team was counseled out of pursuing an ad campaign because the campaign was too risky, whereas Jack’s group was praised for developing a very provocative campaign. Terri feels that Jack’s team is Carly’s pet: His team gets the best assignments, accounts, and budg- ets. Terri finds it hard to hold back the animosity she feels toward Carly.

Like Terri, Julie is concerned that her team is not in the inner circle, close to Carly. She has noticed repeatedly that Carly favors the other teams. For example, whenever additional people are assigned to team projects, it is always the other teams who get the best writers and art directors. Julie is mystified as to why Carly doesn’t notice her team or try to help it with its work. She feels Carly undervalues her team because Julie knows the quality of her team’s work is indisputable.

Although Sarah agrees with some of Terri’s and Julie’s observations about Carly, she does not feel any antagonism about Carly’s leadership. Sarah has worked for the agency for nearly 10 years, and nothing seems to bother her. Her account teams have never been earthshaking, but they have never been problematic either. Sarah views her team and its work more as a nuts-and-bolts operation in which the team is given an assign- ment and carries it out. Being in Carly’s inner circle would entail putting

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in extra time in the evening or on weekends and would create more headaches for Sarah. Therefore, Sarah is happy with her role as it is, and she has little interest in trying to change the way the department works.

Questions

1. Based on the principles of LMX theory, what observations would you make about Carly’s leadership at Mills, Smith, & Peters?

2. Is there an in-group and out-group, and if so, which are they?

3. In what way is Carly’s relationship with the four groups productive or counterproductive to the overall goals of the agency?

4. Do you think Carly should change her approach toward the associate directors? If so, what should she do differently?

CASE 7.2

Working Hard at Being Fair City Mortgage is a medium-size mortgage company that employs about 25 people. Jenny Hernandez, who has been with the company for 10 years, is the production manager who oversees its day-to-day operations.

Reporting to Jenny are loan originators (salespeople), closing officers, mortgage underwriters, and processing and shipping personnel. Jenny is proud of the company and feels as if she has contributed substantially to its steady growth and expansion.

The climate at City Mortgage is very positive. People like to come to work because the office environment is comfortable. They respect each other at the company and show tolerance for those who are different from themselves.

Whereas at many mortgage companies it is common for resentments to build between people who earn different incomes, this is not the case at City Mortgage.

Jenny’s leadership has been instrumental in shaping the success of City Mortgage. Her philosophy stresses listening to employees and then determining how each employee can best contribute to the mission of the company. She makes a point of helping each person explore her or his own talents, and challenges each one to try new things.

(Continued)

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At the annual holiday party, Jenny devised an interesting event that symbolizes her leadership style. She bought a large piece of colorful glass and had it cut into 25 pieces and handed out one piece to each person. Then she asked each employee to come forward with the piece of glass and briefly state what he or she liked about City Mortgage and how he or she had contributed to the company in the past year. After the statements were made, the pieces of glass were formed into a cut glass window that hangs in the front lobby of the office. The glass is a reminder of how each individual contributes his or her uniqueness to the overall purpose of the company.

Another characteristic of Jenny’s style is her fairness. She does not want to give anyone the impression that certain people have the inside track, and she goes to great lengths to prevent this from happening. For exam- ple, she avoids social lunches because she thinks they foster the percep- tion of favoritism. Similarly, even though her best friend is one of the loan originators, she is seldom seen talking with her, and if she is, it is always about business matters.

Jenny also applies her fairness principle to how information is shared in the office. She does not want anyone to feel as if he or she is out of the loop, so she tries very hard to keep her employees informed on all the matters that could affect them. Much of this she does through her open-door office policy. Jenny does not have a special group of employees with whom she confides her concerns; rather, she shares openly with each of them.

Jenny is very committed to her work at City Mortgage. She works long hours and carries a beeper on the weekend. At this point in her career, her only concern is that she could be burning out.

Questions

1. Based on the LMX model, how would you describe Jenny’s leadership?

2. How do you think the employees at City Mortgage respond to Jenny?

3. If you were asked to follow in Jenny’s footsteps, do you think you could or would want to manage City Mortgage with a similar style?

(Continued)

CASE 7.3

Taking on Additional Responsibilities Jim Madison is manager of a district office for the Social Security Administration. The office serves a community of 200,000 people and has a staff of 30 employees, most of whom work as claim representatives.

Chapter 7 Leader–Member Exchange Theory 153

The primary work of the office is to provide the public with information about Social Security benefits and to process retirement, survivor, disabil- ity, and Medicare claims.

Jim has been the manager of the office for 6 years; during that time, he has made many improvements in the overall operations of the office. People in the community have a favorable view of the office and have few complaints about the services it provides. On the annual survey of community service organizations, the district office receives consistently high marks for overall effectiveness and customer satisfaction.

Almost all of the employees who work for Jim have been employed at the district office for 6 years or more; one employee has been there for 22 years. Although Jim takes pride in knowing all of them personally, he calls on a few of them more frequently than others to help him accomplish his goals.

When it comes to training staff members about new laws affecting claim procedures, Jim relies heavily on two particular claim representatives, Shirley and Patti, both of whom are very knowledgeable and competent. Shirley and Patti view the additional training responsibilities as a challenge. This helps Jim: He does not need to do the job himself or supervise them closely because they are highly respected people within the office, and they have a history of being mature and conscientious about their work. Shirley and Patti like the additional responsibility because it gives them greater recognition and increased benefits from receiving positive job appraisals.

To showcase the office’s services to the community, Jim calls on two other employees, Ted and Jana. Ted and Jana serve as field representatives for the office and give presentations to community organizations about the nature of Social Security and how it serves the citizens of the district. In addition, they speak on local radio stations, answering call-in questions about the various complexities of Social Security benefits.

Although many of the claim people in the office could act as field repre- sentatives, Jim typically calls on Ted and Jana because of their willingness to take on the public relations challenge and because of their special capabilities in this area. This is advantageous for Jim for two reasons: First, these people do an outstanding job in representing the office to the public. Second, Jim is a reticent person, and he finds it quite threaten- ing to be in the public eye. Ted and Jana like to take on this additional role because it gives them added prestige and greater freedom. Being a field representative has its perks because field staff can function as their own bosses when they are not in the office; they can set their own sched- ules and come and go as they please.

A third area in which Jim calls on a few representatives for added effort is in helping him supervise the slower claim representatives, who seem to be continually behind in writing up the case reports of their clients.

(Continued)

154 LEADERSHIP THEORY AND PRACTICE

When even a few staff members get behind with their work, it affects the entire office operation. To ameliorate this problem, Jim calls on Glenda and Annie, who are both highly talented, to help the slower staff complete their case reports. Although it means taking on more work themselves, Glenda and Annie do it to be kind and to help the office run more smoothly. Other than personal satisfaction, no additional benefits accrue to them for taking on the additional responsibilities.

Overall, the people who work under Jim’s leadership are satisfied with his supervision. There are some who feel that he caters too much to a few special representatives, but most of the staff think Jim is fair and impartial. Even though he depends more on a few, Jim tries very hard to attend to the wants and needs of his entire staff.

Questions

1. From an LMX theory point of view, how would you describe Jim’s relationships with his employees at the district Social Security office?

2. Can you identify an in-group and an out-group?

3. Do you think the trust and respect Jim places in some of his staff are productive or counterproductive? Why?

4. As suggested in the chapter, leadership making recommends that the leader build high-quality relationships with all of the followers. How would you evaluate Jim’s leadership in regards to leadership making? Discuss.

LEADERSHIP INSTRUMENT

Researchers have used many different questionnaires to study LMX theory. All of them have been designed to measure the quality of the working rela- tionship between leaders and followers. We have chosen to include in this chapter the LMX 7, a seven-item questionnaire that provides a reliable and valid measure of the quality of leader–member exchanges (Graen & Uhl-Bien, 1995). The LMX 7 is designed to measure three dimensions of leader–member relationships: respect, trust, and obligation. It assesses the degree to which leaders and followers have mutual respect for each other’s capabilities, feel a deepening sense of reciprocal trust, and have a strong sense of obligation to one another. Taken together, these dimensions are the ingredients of strong partnerships.

(Continued)

Chapter 7 Leader–Member Exchange Theory 155

LMX 7 Questionnaire Instructions: This questionnaire contains items that ask you to describe your relationship with either your leader or one of your followers. For each of the items, indicate the degree to which you think the item is true for you by circling one of the responses that appear below the item.

1. Do you know where you stand with your leader (follower) . . . [and] do you usually know how satisfied your leader (follower) is with what you do?

Rarely Occasionally Sometimes Fairly often Very often

1 2 3 4 5

2. How well does your leader (follower) understand your job problems and needs?

Not a bit A little A fair amount Quite a bit A great deal

1 2 3 4 5

3. How well does your leader (follower) recognize your potential?

Not at all A little Moderately Mostly Fully

1 2 3 4 5

4. Regardless of how much formal authority your leader (follower) has built into his or her position, what are the chances that your leader (follower) would use his or her power to help you solve problems in your work?

None Small Moderate High Very high

1 2 3 4 5

5. Again, regardless of the amount of formal authority your leader (fol- lower) has, what are the chances that he or she would “bail you out” at his or her expense?

None Small Moderate High Very high

1 2 3 4 5

6. I have enough confidence in my leader (follower) that I would defend and justify his or her decision if he or she were not present to do so.

Strongly disagree Disagree Neutral Agree Strongly agree

1 2 3 4 5

7. How would you characterize your working relationship with your leader (follower)?

Extremely Worse than Average Better than Extremely ineffective average average effective

1 2 3 4 5

156 LEADERSHIP THEORY AND PRACTICE

By completing the LMX 7, you can gain a fuller understanding of how LMX theory works. The score you obtain on the questionnaire reflects the quality of your leader–member relationships, and indicates the degree to which your relationships are characteristic of partnerships, as described in the LMX model.

You can complete the questionnaire both as a leader and as a follower. In the leader role, you would complete the questionnaire multiple times, assessing the quality of the relationships you have with each of your fol- lowers. In the follower role, you would complete the questionnaire based on the leaders to whom you report.

Scoring Interpretation

Although the LMX 7 is most commonly used by researchers to explore theoretical questions, you can also use it to analyze your own leadership style. You can interpret your LMX 7 scores using the following guidelines: very high = 30–35, high = 25–29, moderate = 20–24, low = 15–19, and very low = 7–14. Scores in the upper ranges indicate stronger, higher- quality leader–member exchanges (e.g., in-group members), whereas scores in the lower ranges indicate exchanges of lesser quality (e.g., out- group members).

SOURCE: Reprinted from “Relationship-Based Approach to Leadership: Development of Leader–Member Exchange (LMX) Theory of Leadership Over 25 Years: Applying a Multi- Level, Multi-Domain Perspective,” by G. B. Graen and M. Uhl-Bien, 1995, Leadership Quarterly, 6(2), 219–247. Copyright © 1995. Reprinted with permission from Elsevier Science.

The LMX Score

Chapter 7 Leader–Member Exchange Theory 157

SUMMARY

Since it first appeared more than 30 years ago under the title “vertical dyad linkage (VDL) theory,” LMX theory has been and continues to be a much- studied approach to leadership. LMX theory addresses leadership as a pro- cess centered on the interactions between leaders and followers. It makes the leader–member relationship the pivotal concept in the leadership process. In the early studies of LMX theory, a leader’s relationship to the overall work unit was viewed as a series of vertical dyads, categorized as being of two dif- ferent types: Leader–member dyads based on expanded role relationships were called the leader’s in-group, and those based on formal job descriptions were called the leader’s out-group. It is believed that followers become in- group members based on how well they get along with the leader and whether they are willing to expand their role responsibilities. Followers who maintain only formal hierarchical relationships with their leader are out-group mem- bers. Whereas in-group members receive extra influence, opportunities, and rewards, out-group members receive standard job benefits. Subsequent studies of LMX theory were directed toward how leader– member exchanges affect organizational performance. Researchers found that high-quality exchanges between leaders and followers produced mul- tiple positive outcomes (e.g., less employee turnover, greater organizational commitment, and more promotions). In general, researchers determined that good leader–member exchanges result in followers feeling better, accomplishing more, and helping the organization prosper. A select body of LMX research focuses on leadership making, which empha- sizes that leaders should try to develop high-quality exchanges with all of their followers. Leadership making develops over time and includes a stranger phase, an acquaintance phase, and a mature partnership phase. By taking on and fulfilling new role responsibilities, followers move through these three phases to develop mature partnerships with their leaders. These partnerships, which are marked by a high degree of mutual trust, respect, and obligation, have positive payoffs for the individuals themselves, and help the organization run more effectively. There are several positive features to LMX theory. First, LMX theory is a strong descriptive approach that explains how leaders use some followers (in-group members) more than others (out-group members) to accomplish organizational goals effectively. Second, LMX theory is unique in that, unlike other approaches, it makes the leader–member relationship the focal

LMX Explanation

158 LEADERSHIP THEORY AND PRACTICE

point of the leadership process. Related to this focus, LMX theory is note- worthy because it directs our attention to the importance of effective com- munication in leader–member relationships. In addition, it reminds us to be evenhanded in how we relate to our followers. Last, LMX theory is sup- ported by a multitude of studies that link high-quality leader–member exchanges to positive organizational outcomes. There are also negative features in LMX theory. First, the early formulation of LMX theory (VDL theory) runs counter to our principles of fairness and justice in the workplace by suggesting that some members of the work unit receive special attention and others do not. The perceived inequalities cre- ated by the use of in-groups can have a devastating impact on the feelings, attitudes, and behavior of out-group members. Second, LMX theory empha- sizes the importance of leader–member exchanges but fails to explain the intricacies of how one goes about creating high-quality exchanges. Although the model promotes building trust, respect, and commitment in relation- ships, it does not fully explicate how this takes place. Third, researchers have not adequately explained the contextual factors that influence LMX rela- tionships. Finally, there are questions about whether the measurement pro- cedures used in LMX research are adequate to fully capture the complexities of the leader–member exchange process.

Sharpen your skills with SAGE edge at edge.sagepub.com/northouse7e

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Atwater, L., & Carmeli, A. (2009). Leader-member exchange, feelings of energy, and involvement in creative work. Leadership Quarterly, 20, 264–275.

Dansereau, F., Graen, G. B., & Haga, W. (1975). A vertical dyad linkage approach to leadership in formal organizations. Organizational Behavior and Human Perfor- mance, 13, 46–78.

Gerstner, C. R., & Day, D. V. (1997). Meta-analytic review of leader-member exchange theory: Correlates and construct issues. Journal of Applied Psychology, 82, 827–844.

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Graen, G. B. (1976). Role-making processes within complex organizations. In M. D. Dunnette (Ed.), Handbook of industrial and organizational psychology (pp. 1202– 1245). Chicago: Rand McNally.

Graen, G. B., & Cashman, J. (1975). A role-making model of leadership in formal organizations: A developmental approach. In J. G. Hunt & L. L. Larson (Eds.), Leadership frontiers (pp. 143–166). Kent, OH: Kent State University Press.

Graen, G. B., & Scandura, T. A. (1987). Toward a psychology of dyadic organizing. In B. Staw & L. L. Cumming (Eds.), Research in organizational behavior (Vol. 9, pp. 175–208). Greenwich, CT: JAI.

Graen, G. B., & Uhl-Bien, M. (1991). The transformation of professionals into self- managing and partially self-designing contributions: Toward a theory of leadership making. Journal of Management Systems, 3(3), 33–48.

Graen, G. B., & Uhl-Bien, M. (1995). Relationship-based approach to leadership: Development of leader–member exchange (LMX) theory of leadership over 25 years: Applying a multi-level, multi-domain perspective. Leadership Quarterly, 6(2), 219–247.

Harris, K. J., Wheeler, A. R., & Kacmar, K. M. (2009). Leader-member exchange and empowerment: Direct and interactive effects on job satisfaction, turnover inten- tions, and performance. Leadership Quarterly, 20, 371–382.

Harter, N., & Evanecky, D. (2002). Fairness in leader–member exchange theory: Do we all belong on the inside? Leadership Review, 2(2), 1–7.

Ilies, R., Nahrgang, J. D., & Morgeson, F. P. (2007). Leader-member exchange and citizenship behaviors: A meta-analysis. Journal of Applied Psychology, 92(1), 269–277.

Katz, D. (1964). Motivational basis of organizational behavior. Behavioral Science, 9 131–146.

Liden, R. C., Wayne, S. J., & Stilwell, D. (1993). A longitudinal study on the early development of leader–member exchange. Journal of Applied Psychology, 78, 662–674.

McClane, W. E. (1991). Implications of member role differentiation: Analysis of a key concept in the LMX model of leadership. Group & Organization Studies, 16(1), 102–113.

Nahrgang, J. D., Morgeson, R. P., & Ilies, R. (2009). The development of leader- member exchanges: Exploring how personality and performance influence leader and member relationships over time. Organizational Behavior and Human Decision Processes, 108, 256–266.

Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome. Lexington, MA: Lexington Books.

Scandura, T. A. (1999). Rethinking leader–member exchange: An organizational jus- tice perspective. Leadership Quarterly, 10(1), 25–40.

Schriesheim, C. A., Castro, S. L., & Cogliser, C. C. (1999). Leader–member exchange (LMX) research: A comprehensive review of theory, measurement, and data- analytic practices. Leadership Quarterly, 10, 63–113.

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Schriesheim, C. A., Castro, S. L., Zhou, X., & Yammarino, F. J. (2001). The folly of theorizing “A” but testing “B”: A selective level-of-analysis review of the field and a detailed leader–member exchange illustration. Leadership Quarterly, 12, 515–551.

Uhl-Bien, M., Maslyn, J., & Ospina, S. (2012). The nature of relational leadership: A multitheoretical lens on leadership relationships and processes. In D. V. Day & J. Antonakis (Eds.), The nature of leadership (2nd ed., pp. 289–330). Thousand Oaks, CA: SAGE.

Yukl, G. (1994). Leadership in organizations (3rd ed.). Englewood Cliffs, NJ: Prentice Hall.

Transformational Leadership

DESCRIPTION

One of the current and most popular approaches to leadership that has been the focus of much research since the early 1980s is the transformational approach. Transformational leadership is part of the “New Leadership” paradigm (Bryman, 1992), which gives more attention to the charismatic and affective elements of leadership. In a content analysis of articles pub- lished in Leadership Quarterly, Lowe and Gardner (2001) found that one third of the research was about transformational or charismatic leadership. Similarly, Antonakis (2012) found that the number of papers and citations in the field has grown at an increasing rate, not only in traditional areas like management and social psychology, but in other disciplines such as nursing, education, and industrial engineering. Bass and Riggio (2006) suggested that transformational leadership’s popularity might be due to its emphasis on intrinsic motivation and follower development, which fits the needs of today’s work groups, who want to be inspired and empowered to succeed in times of uncertainty. Clearly, many scholars are studying transformational leadership, and it occupies a central place in leadership research. As its name implies, transformational leadership is a process that changes and transforms people. It is concerned with emotions, values, ethics, stan- dards, and long-term goals. It includes assessing followers’ motives, satisfying their needs, and treating them as full human beings. Transformational lead- ership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic and visionary leadership.

Transformational Leadership

162 LEADERSHIP THEORY AND PRACTICE

An encompassing approach, transformational leadership can be used to describe a wide range of leadership, from very specific attempts to influence followers on a one-to-one level, to very broad attempts to influence whole organizations and even entire cultures. Although the transformational leader plays a pivotal role in precipitating change, followers and leaders are inextri- cably bound together in the transformation process.

Transformational Leadership Defined

The term transformational leadership was first coined by Downton (1973). Its emergence as an important approach to leadership began with a classic work by political sociologist James MacGregor Burns titled Leadership (1978). In his work, Burns attempted to link the roles of leadership and followership. He wrote of leaders as people who tap the motives of followers in order to better reach the goals of leaders and followers (p. 18). For Burns, leadership is quite different from power because it is inseparable from followers’ needs.

Transformational vs. Transactional Leadership. Burns distinguished between two types of leadership: transactional and transformational. Transactional leadership refers to the bulk of leadership models, which focus on the exchanges that occur between leaders and their followers. Politicians who win votes by promising “no new taxes” are demonstrating transactional leadership. Similarly, managers who offer promotions to employees who surpass their goals are exhibiting transactional leadership. In the classroom, teachers are being transactional when they give students a grade for work completed. The exchange dimension of transactional leadership is very common and can be observed at many levels throughout all types of organizations.

In contrast to transactional leadership, transformational leadership is the process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the fol- lower. This type of leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential. Burns points to Mohandas Gandhi as a classic example of transformational leadership. Gandhi raised the hopes and demands of millions of his people, and, in the process, was changed himself. Another good example of transformational leadership can be observed in the life of Ryan White. This teenager raised the American people’s awareness about AIDS and in the process became a spokesperson for increasing gov- ernment support of AIDS research. In the organizational world, an example of transformational leadership would be a manager who attempts to change

James MacGregor Burns

Chapter 8 Transformational Leadership 163

his or her company’s corporate values to reflect a more humane standard of fairness and justice. In the process, both the manager and the followers may emerge with a stronger and higher set of moral values.

Pseudotransformational Leadership. Because the conceptualization of transformational leadership set forth by Burns (1978) includes raising the level of morality in others, it is difficult to use this term when describing leaders such as Adolf Hitler and Saddam Hussein, who were transforming but in a negative way. To deal with this problem Bass (1998) coined the term pseudotransformational leadership. This term refers to leaders who are self-consumed, exploitive, and power oriented, with warped moral values (Bass & Riggio, 2006). Pseudotransformational leadership is considered personalized leadership, which focuses on the leader’s own interests rather than on the interests of others (Bass & Steidlmeier, 1999). Authentic transformational leadership is socialized leadership, which is concerned with the collective good. Socialized transformational leaders transcend their own interests for the sake of others (Howell & Avolio, 1993).

In a series of four experimental studies, Christie, Barling, and Turner (2011) set forth a preliminary model of pseudotransformational leadership that reflected four components of transformational leadership discussed later in this chapter: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. This model helps to clarify the meaning of pseudotransformational leadership. It suggests that pseu- dotransformational leadership is inspired leadership that is self-serving, is unwilling to encourage independent thought in followers, and exhibits little general caring for others. A pseudotransformational leader has strong inspirational talent and appeal but is manipulative and dominates and directs followers toward his or her own values. It is leadership that is threatening to the welfare of followers because it ignores the common good. To sort out the complexities related to the “moral uplifting” component of authentic transformational leadership, Zhu, Avolio, Riggio, and Sosik (2011) proposed a theoretical model examining how authentic transformational leadership influences the ethics of individual followers and groups. The authors hypothesize that authentic transformational leadership positively affects followers’ moral identities and moral emotions (e.g., empathy and guilt) and this, in turn, leads to moral decision making and moral action by the followers. Furthermore, the authors theorize that authentic transforma- tional leadership is positively associated with group ethical climate, decision making, and moral action. In the future, research is needed to test the valid- ity of the assumptions laid out in this model.

Transformational Leadership

164 LEADERSHIP THEORY AND PRACTICE

Transformational Leadership and Charisma

At about the same time Burns’s book was published, House (1976) published a theory of charismatic leadership. Since its publication, charismatic leader- ship has received a great deal of attention by researchers (e.g., Conger, 1999; Hunt & Conger, 1999). It is often described in ways that make it similar to, if not synonymous with, transformational leadership. The word charisma was first used to describe a special gift that certain individuals possess that gives them the capacity to do extraordinary things. Weber (1947) provided the most well-known definition of cha- risma as a special personality characteristic that gives a person superhu- man or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader. Despite Weber’s emphasis on charisma as a personality characteristic, he also recognized the important role played by followers in validating charisma in these leaders (Bryman, 1992; House, 1976). In his theory of charismatic leadership, House suggested that charismatic leaders act in unique ways that have specific charismatic effects on their fol- lowers (Table 8.1). For House, the personality characteristics of a charismatic leader include being dominant, having a strong desire to influence others, being self-confident, and having a strong sense of one’s own moral values. In addition to displaying certain personality characteristics, charismatic leaders also demonstrate specific types of behaviors. First, they are strong role models for the beliefs and values they want their followers to adopt. For example, Gandhi advocated nonviolence and was an exemplary role model of civil disobedience. Second, charismatic leaders appear competent to fol- lowers. Third, they articulate ideological goals that have moral overtones. Martin Luther King, Jr.’s famous “I Have a Dream” speech is an example of this type of charismatic behavior. Fourth, charismatic leaders communicate high expectations for followers, and they exhibit confidence in followers’ abilities to meet these expectations. The impact of this behavior is to increase followers’ sense of competence and self- efficacy (Avolio & Gibbons, 1988), which in turn improves their performance. Fifth, charismatic leaders arouse task-relevant motives in followers that may include affiliation, power, or esteem. For example, former U.S. President John F. Kennedy appealed to the human values of the American people when he stated, “Ask not what your country can do for you; ask what you can do for your country.”

Teaching Charisma

Chapter 8 Transformational Leadership 165

According to House’s charismatic theory, several effects are the direct result of charismatic leadership. They include follower trust in the leader’s ideol- ogy, similarity between the followers’ beliefs and the leader’s beliefs, unques- tioning acceptance of the leader, expression of affection toward the leader, follower obedience, identification with the leader, emotional involvement in the leader’s goals, heightened goals for followers, and increased follower con- fidence in goal achievement. Consistent with Weber, House contends that these charismatic effects are more likely to occur in contexts in which fol- lowers feel distress because in stressful situations followers look to leaders to deliver them from their difficulties. House’s charismatic theory has been extended and revised through the years (see Conger, 1999; Conger & Kanungo, 1998). One major revision to the theory was made by Shamir, House, and Arthur (1993). They pos- tulated that charismatic leadership transforms followers’ self-concepts and tries to link the identity of followers to the collective identity of the orga- nization. Charismatic leaders forge this link by emphasizing the intrinsic rewards of work and deemphasizing the extrinsic rewards. The hope is that followers will view work as an expression of themselves. Throughout the process, leaders express high expectations for followers and help them gain a sense of confidence and self-efficacy. In summary, charismatic leadership works because it ties followers and their self-concepts to the organizational identity.

Table 8.1 Personality Characteristics, Behaviors, and Effects on Followers of Charismatic Leadership

Personality Characteristics Behaviors Effects on Followers

Dominant

Desire to influence

Self-confident

Strong moral values

Sets strong role model

Shows competence

Articulates goals

Communicates high expectations

Expresses confidence

Arouses motives

Trust in leader’s ideology

Belief similarity between leader and follower

Unquestioning acceptance

Affection toward leader

Obedience

Identification with leader

Emotional involvement

Heightened goals

Increased confidence

Romance of Leadership

166 LEADERSHIP THEORY AND PRACTICE

A Model of Transformational Leadership

In the mid-1980s, Bass (1985) provided a more expanded and refined version of transformational leadership that was based on, but not fully consistent with, the prior works of Burns (1978) and House (1976). In his approach, Bass extended Burns’s work by giving more attention to followers’ rather than lead- ers’ needs, by suggesting that transformational leadership could apply to situ- ations in which the outcomes were not positive, and by describing transac- tional and transformational leadership as a single continuum (Figure 8.1) rather than mutually independent continua (Yammarino, 1993). Bass extended House’s work by giving more attention to the emotional elements and origins of charisma and by suggesting that charisma is a necessary but not sufficient condition for transformational leadership (Yammarino, 1993).

Transformational Leadership

Transactional Leadership

Laissez–Faire Leadership

Figure 8.1 Leadership Continuum From Transformational to Laissez-Faire Leadership

Bass (1985, p. 20) argued that transformational leadership motivates follow- ers to do more than expected by (a) raising followers’ levels of consciousness about the importance and value of specified and idealized goals, (b) getting followers to transcend their own self-interest for the sake of the team or organization, and (c) moving followers to address higher-level needs. An elaboration of the dynamics of the transformation process is provided in his model of transformational and transactional leadership (Bass, 1985, 1990; Bass & Avolio, 1993, 1994). Additional clarification of the model is provided by Avolio in his book Full Leadership Development: Building the Vital Forces in Organizations (1999). As can be seen in Table 8.2, the model of transformational and transac- tional leadership incorporates seven different factors. These factors are also illustrated in the Full Range of Leadership model, which is provided in Figure 8.2 on page 168. A discussion of each of these seven factors will help

Transformational Leadership

Chapter 8 Transformational Leadership 167

to clarify Bass’s model. This discussion will be divided into three parts: transformational factors (4), transactional factors (2), and the nonleadership, nontransactional factor (1).

Table 8.2 Leadership Factors

Transformational Leadership

Transactional Leadership

Laissez–Faire Leadership

Factor 1 Idealized influence

Charisma

Factor 2 Inspirational motivation

Factor 3 Intellectual stimulation

Factor 4 Individualized consideration

Factor 5

Contingent reward

Constructive transactions

Factor 6

Management-by-exception

Active and passive

Corrective transactions

Factor 7 Laissez–faire

Nontransactional

Transformational Leadership Factors

Transformational leadership is concerned with improving the performance of followers and developing followers to their fullest potential (Avolio, 1999; Bass & Avolio, 1990a). People who exhibit transformational leadership often have a strong set of internal values and ideals, and they are effective at moti- vating followers to act in ways that support the greater good rather than their own self-interests (Kuhnert, 1994).

Idealized Influence. Factor 1 is called charisma or idealized influence. It is the emotional component of leadership (Antonakis, 2012). Idealized influence describes leaders who act as strong role models for followers; followers identify with these leaders and want very much to emulate them. These leaders usually have very high standards of moral and ethical conduct and can be counted on to do the right thing. They are deeply respected by followers, who usually place a great deal of trust in them. They provide followers with a vision and a sense of mission.

The idealized influence factor is measured on two components: an attribu- tional component that refers to the attributions of leaders made by followers based on perceptions they have of their leaders, and a behavioral component that refers to followers’ observations of leader behavior.

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168 LEADERSHIP THEORY AND PRACTICE

In essence, the charisma factor describes people who are special and who make others want to follow the vision they put forward. A person whose leadership exemplifies the charisma factor is Nelson Mandela, the first non-White pres- ident of South Africa. Mandela is viewed as a leader with high moral standards and a vision for South Africa that resulted in monumental change in how the people of South Africa would be governed. His charismatic qualities and the people’s response to them transformed an entire nation.

Effective

Ineffective

ActivePassive

Fr eq

ue nc

LEGEND

Nonleadership LF Laissez-Faire Transactional MBE-P Management-by-Exception, Passive MBE-A Management-by-Exception, Active CR Contingent Reward Transformational 4 I’s Idealized Influence Inspirational Motivation Intellectual Stimulation Individualized Consideration

LF Laissez-Faire

MBE-P Management-by-Exception, Passive MBE-A Management-by-Exception, Active CR Contingent Reward

Idealized Influence Inspirational Motivation Intellectual Stimulation Individualized Consideration

4 I’s

MBE-A

MBE-P

Figure 8.2 Full Range of Leadership Model

Chapter 8 Transformational Leadership 169

Inspirational Motivation. Factor 2 is called inspiration or inspirational motivation. This factor is descriptive of leaders who communicate high expectations to followers, inspiring them through motivation to become committed to and a part of the shared vision in the organization. In practice, leaders use symbols and emotional appeals to focus group members’ efforts to achieve more than they would in their own self-interest. Team spirit is enhanced by this type of leadership. An example of this factor would be a sales manager who motivates members of the sales force to excel in their work through encouraging words and pep talks that clearly communicate the integral role they play in the future growth of the company.

Intellectual Stimulation. Factor 3 is intellectual stimulation. It includes leadership that stimulates followers to be creative and innovative and to challenge their own beliefs and values as well as those of the leader and the organization.

This type of leadership supports followers as they try new approaches and develop innovative ways of dealing with organizational issues. It encourages followers to think things out on their own and engage in careful problem solving. An example of this type of leadership is a plant manager who promotes workers’ individual efforts to develop unique ways to solve problems that have caused slowdowns in production.

Individualized Consideration. Factor 4 of transformational leadership is called individualized consideration. This factor is representative of leaders who provide a supportive climate in which they listen carefully to the individual needs of followers. Leaders act as coaches and advisers while trying to assist followers in becoming fully actualized. These leaders may use delegation to help followers grow through personal challenges. An example of this type of leadership is a manager who spends time treating each employee in a caring and unique way. To some employees, the leader may give strong affiliation; to others, the leader may give specific directives with a high degree of structure.

In essence, transformational leadership produces greater effects than transactional leadership (Figure 8.3). Whereas transactional leadership results in expected outcomes, transformational leadership results in performance that goes well beyond what is expected. In a meta-analysis of 39 studies in the transformational literature, for example, Lowe, Kroeck, and Sivasubramaniam (1996) found that people who exhibited transformational leadership were perceived to be more effective leaders with better work outcomes than those who exhibited only transactional leadership. These

Additive Effect Mother Theresa

170 LEADERSHIP THEORY AND PRACTICE

findings were true for higher- and lower-level leaders, and for leaders in both public and private settings. Transformational leadership moves followers to accomplish more than what is usually expected of them. They become motivated to transcend their own self-interests for the good of the group or organization (Bass & Avolio, 1990a).

In a study of 220 employees at a large public transport company in Germany, Rowold and Heinitz (2007) found that transformational leadership augmented the impact of transactional leadership on employees’ performance and company profit. In addition, they found that transformational leadership and charismatic leadership were overlapping but unique constructs, and that both were different from transactional leadership.

Similarly, Nemanich and Keller (2007) examined the impact of transformational leadership on 447 employees from a large multinational firm who were going through a merger and being integrated into a new organization. They found that transformational leadership behaviors such as idealized influence, inspirational motivation, individualized consideration, and intellectual stimulation were positively related to acquisition acceptance, job satisfaction, and performance.

More recently, Tims, Bakker, and Xanthopoulou (2011) examined the relationship between transformational leadership and work engagement in

SOURCE: Adapted from “The Implications of Transactional and Transformational Leadership for Individual, Team, and Organizational Development,” by B. M. Bass and B. J. Avolio, 1990a, Research in Organizational Change and Development, 4, 231–272.

Idealized Influence

Individualized Consideration

Inspirational Motivation

Intellectual Stimulation

+ +

Expected Outcomes

Performance Beyond

Expectations

TRANSACTIONAL LEADERSHIP

TRANSFORMATIONAL LEADERSHIP

Contingent Reward

Management- by-Exception

Figure 8.3 The Additive Effect of Transformational Leadership

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Chapter 8 Transformational Leadership 171

42 employees and their supervisors in two different organizations in the Netherlands. Findings revealed that employees became more engaged in their work (i.e., vigor, dedication, and absorption) when their supervisors were able to boost employees’ optimism through a transformational leadership style. These findings underscore the important role played by personal characteristics (i.e., optimism) in the transformational leadership- performance process.

Transactional Leadership Factors

Transactional leadership differs from transformational leadership in that the transactional leader does not individualize the needs of followers or focus on their personal development. Transactional leaders exchange things of value with followers to advance their own and their followers’ agendas (Kuhnert, 1994). Transactional leaders are influential because it is in the best interest of followers for them to do what the leader wants (Kuhnert & Lewis, 1987).

Contingent Reward. Factor 5, contingent reward, is the first of two transactional leadership factors (see Figure 8.2). It is an exchange process between leaders and followers in which effort by followers is exchanged for specified rewards. With this kind of leadership, the leader tries to obtain agreement from followers on what must be done and what the payoffs will be for the people doing it. An example of this type of transaction is a parent who negotiates with a child about how much television the child can watch after practicing the piano. Another example often occurs in the academic setting: A dean negotiates with a college professor about the number and quality of publications he or she needs to have written in order to receive tenure and promotion.

Management-by-Exception. Factor 6 is called management-by-exception. It is leadership that involves corrective criticism, negative feedback, and negative reinforcement. Management-by-exception takes two forms: active and passive. A leader using the active form of management-by-exception watches followers closely for mistakes or rule violations and then takes corrective action. An example of active management-by-exception can be illustrated in the leadership of a sales supervisor who daily monitors how employees approach customers. She quickly corrects salespeople who are slow to approach customers in the prescribed manner. A leader using the passive form intervenes only after standards have not been met or problems have arisen. An example of passive

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management-by-exception is illustrated in the leadership of a supervisor who gives an employee a poor performance evaluation without ever talking with the employee about her or his prior work performance. In essence, both the active and passive management types use more negative reinforcement patterns than the positive reinforcement pattern described in Factor 5 under contingent reward.

Nonleadership Factor

In the model, the nonleadership factor diverges farther from transactional leadership and represents behaviors that are nontransactional.

Laissez-Faire. Factor 7 describes leadership that falls at the far right side of the transactional–transformational leadership continuum (see Figure 8.1). This factor represents the absence of leadership. As the French phrase implies, the laissez-faire leader takes a “hands-off, let-things-ride” approach. This leader abdicates responsibility, delays decisions, gives no feedback, and makes little effort to help followers satisfy their needs. There is no exchange with followers or attempt to help them grow. An example of a laissez-faire leader is the president of a small manufacturing firm who calls no meetings with plant supervisors, has no long-range plan for the firm, acts detached, and makes little contact with employees.

Other Transformational Perspectives

In addition to Bass’s (1985, 1990; Bass & Avolio, 1994) work, two other lines of research have contributed in unique ways to our understanding of the nature of transformational leadership. They are the research of Bennis and Nanus (1985) and the work of Kouzes and Posner (1987, 2002). These schol- ars used similar research methods. They identified a number of middle- or senior-level leaders and conducted interviews with them, using open-ended, semistructured questionnaires. From this information, they constructed their models of leadership.

Bennis and Nanus

Bennis and Nanus (1985) asked 90 leaders basic questions such as “What are your strengths and weaknesses?” “What past events most influenced your leadership approach?” and “What were the critical points in your career?” From the answers leaders provided to these questions, Bennis and

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Nanus identified four common strategies used by leaders in transforming organizations. First, transforming leaders had a clear vision of the future state of their orga- nizations. It was an image of an attractive, realistic, and believable future (Bennis & Nanus, 1985, p. 89). The vision usually was simple, understandable, beneficial, and energy creating. The compelling nature of the vision touched the experiences of followers and pulled them into supporting the organiza- tion. When an organization has a clear vision, it is easier for people within the organization to learn how they fit in with the overall direction of the organization and even the society in general. It empowers them because they feel they are a significant dimension of a worthwhile enterprise (pp. 90–91). Bennis and Nanus found that, to be successful, the vision had to grow out of the needs of the entire organization and to be claimed by those within it. Although leaders play a large role in articulating the vision, the emergence of the vision originates from both the leaders and the followers. Second, transforming leaders were social architects for their organizations. This means they created a shape or form for the shared meanings people maintained within their organizations. These leaders communicated a direc- tion that transformed their organization’s values and norms. In many cases, these leaders were able to mobilize people to accept a new group identity or a new philosophy for their organizations. Third, transforming leaders created trust in their organizations by making their own positions clearly known and then standing by them. Trust has to do with being predictable or reliable, even in situations that are uncertain. For organizations, leaders built trust by articulating a direction and then consistently implementing the direction even though the vision may have involved a high degree of uncertainty. Bennis and Nanus (1985) found that when leaders established trust in an organization, it gave the organization a sense of integrity analogous to a healthy identity (p. 48). Fourth, transforming leaders used creative deployment of self through positive self-regard. Leaders knew their strengths and weaknesses, and they emphasized their strengths rather than dwelling on their weaknesses. Based on an awareness of their own competence, effective leaders were able to immerse themselves in their tasks and the overarching goals of their organizations. They were able to fuse a sense of self with the work at hand. Bennis and Nanus also found that positive self-regard in leaders had a reciprocal impact on followers, creating in them feelings of confidence and high expectations. In addition, leaders in the study were committed to learning and relearning, so in their organizations there was consistent emphasis on education.

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Kouzes and Posner

Kouzes and Posner (1987, 2002) developed their model by interviewing lead- ers about leadership. They interviewed more than 1,300 middle- and senior- level managers in private and public sector organizations and asked them to describe their “personal best” experiences as leaders. Based on a content analysis of these descriptions, Kouzes and Posner constructed a model of leadership. The Kouzes and Posner model consists of five fundamental practices that enable leaders to get extraordinary things accomplished: model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart. For each of the five practices of exemplary leadership, Kouzes and Posner also have identified two commitments that serve as strategies for practicing exemplary leadership.

Model the Way. To model the way, leaders need to be clear about their own values and philosophy. They need to find their own voice and express it to others. Exemplary leaders set a personal example for others by their own behaviors. They also follow through on their promises and commitments and affirm the common values they share with others.

Inspire a Shared Vision. Effective leaders create compelling visions that can guide people’s behavior. They are able to visualize positive outcomes in the future and communicate them to others. Leaders also listen to the dreams of others and show them how their dreams can be realized. Through inspiring visions, leaders challenge others to transcend the status quo to do something for others.

Challenge the Process. Challenging the process means being willing to change the status quo and step into the unknown. It includes being willing to innovate, grow, and improve. Exemplary leaders are like pioneers: They want to experiment and try new things. They are willing to take risks to make things better. When exemplary leaders take risks, they do it one step at a time, learning from their mistakes as they go.

Enable Others to Act. Outstanding leaders are effective at working with people. They build trust with others and promote collaboration. Teamwork and cooperation are highly valued by these leaders. They listen closely to diverse points of view and treat others with dignity and respect. They also allow others to make choices, and they support the decisions that others make. In short, they create environments where people can feel good about their work and how it contributes to the greater community.

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Encourage the Heart. Leaders encourage the heart by rewarding others for their accomplishments. It is natural for people to want support and recognition. Effective leaders are attentive to this need and are willing to give praise to workers for jobs well done. They use authentic celebrations and rituals to show appreciation and encouragement to others. The outcome of this kind of support is greater collective identity and community spirit. Overall, the Kouzes and Posner model emphasizes behaviors and has a pre- scriptive quality: It recommends what people need to do in order to become effective leaders. The five practices and their accompanying commitments provide a unique set of prescriptions for leaders. Kouzes and Posner (2002, p. 13) stressed that the five practices of exemplary leadership are available to everyone and are not reserved for those with “special” ability. The model is not about personality: It is about practice. To measure the behaviors described in the model, Kouzes and Posner devel- oped the Leadership Practices Inventory (LPI). The LPI is a 360-degree leadership assessment tool that consists of 30 questions that assess individual leadership competencies. It has been widely used in leadership training and development.

HOW DOES THE TRANSFORMATIONAL APPROACH WORK? -------------------------------------------------------------------------

The transformational approach to leadership is a broad-based perspective that encompasses many facets and dimensions of the leadership process. In general, it describes how leaders can initiate, develop, and carry out signifi- cant changes in organizations. Although not definitive, the steps followed by transformational leaders usually take the following form. Transformational leaders set out to empower followers and nurture them in change. They attempt to raise the consciousness in individuals and to get them to transcend their own self-interests for the sake of others. For example, Jung, Chow, and Wu (2003) studied upper-level leadership in 32 Taiwanese companies and found that transformational leadership was directly related to organizational innovation. Transformational leadership created a culture in which employees felt empowered and encouraged to freely discuss and try new things. To create change, transformational leaders become strong role models for their followers. They have a highly developed set of moral values and a self- determined sense of identity (Avolio & Gibbons, 1988). They are confident,

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competent, and articulate, and they express strong ideals. They listen to followers and are not intolerant of opposing viewpoints. A spirit of coop- eration often develops between these leaders and their followers. Followers want to emulate transformational leaders because they learn to trust them and believe in the ideas for which they stand. It is common for transformational leaders to create a vision. The vision emerges from the collective interests of various individuals and units in an organization. The vision is a focal point for transformational leadership. It gives the leader and the organization a conceptual map for where the orga- nization is headed; it gives meaning and clarifies the organization’s identity. Furthermore, the vision gives followers a sense of identity within the orga- nization and also a sense of self-efficacy (Shamir et al., 1993). The transformational approach also requires that leaders become social architects. This means that they make clear the emerging values and norms of the organization. They involve themselves in the culture of the organiza- tion and help shape its meaning. People need to know their roles and under- stand how they contribute to the greater purposes of the organization. Transformational leaders are out front in interpreting and shaping for orga- nizations the shared meanings that exist within them. Throughout the process, transformational leaders are effective at working with people. They build trust and foster collaboration with others. Trans- formational leaders encourage others and celebrate their accomplishments. In the end, transformational leadership results in people feeling better about themselves and their contributions to the greater common good.

STRENGTHS

In its present stage of development, the transformational approach has several strengths. First, transformational leadership has been widely researched from many different perspectives, including a series of qualitative studies of prom- inent leaders and CEOs in large, well-known organizations. It has also been the focal point for a large body of leadership research since its introduction in the 1970s. For example, content analysis of all the articles published in Leadership Quarterly from 1990 to 2000 showed that 34% of the articles were about transformational or charismatic leadership (Lowe & Gardner, 2001). Second, transformational leadership has intuitive appeal. The transforma- tional perspective describes how the leader is out front advocating change

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for others; this concept is consistent with society’s popular notion of what leadership means. People are attracted to transformational leadership because it makes sense to them. It is appealing that a leader will provide a vision for the future.

Third, transformational leadership treats leadership as a process that occurs between followers and leaders. Because this process incorporates both the followers’ and the leader’s needs, leadership is not the sole responsibility of a leader but rather emerges from the interplay between leaders and followers. The needs of others are central to the transformational leader. As a result, followers gain a more prominent position in the leadership process because their attributions are instrumental in the evolving transformational process (Bryman, 1992, p. 176).

Fourth, the transformational approach provides a broader view of leader- ship that augments other leadership models. Many leadership models focus primarily on how leaders exchange rewards for achieved goals—the transactional process. The transformational approach provides an expanded picture of leadership that includes not only the exchange of rewards, but also leaders’ attention to the needs and growth of followers (Avolio, 1999; Bass, 1985).

Fifth, transformational leadership places a strong emphasis on followers’ needs, values, and morals. Burns (1978) suggested that transformational leadership involves attempts by leaders to move people to higher standards of moral responsibility. It includes motivating followers to transcend their own self-interests for the good of the team, organization, or community (Howell & Avolio, 1993; Shamir et al., 1993). Transformational leadership is fundamentally morally uplifting (Avolio, 1999). This emphasis sets the transformational approach apart from all other approaches to leadership because it suggests that leadership has a moral dimension. Therefore, the coercive uses of power by people such as Hitler, Jim Jones, and David Koresh can be disregarded as models of leadership.

Finally, there is substantial evidence that transformational leadership is an effective form of leadership (Yukl, 1999). In a critique of transformational and charismatic leadership, Yukl reported that in studies using the Multi- factor Leadership Questionnaire (MLQ) to appraise leaders, transforma- tional leadership was positively related to follower satisfaction, motivation, and performance. Furthermore, in studies that used interviews and observa- tions, transformational leadership was shown to be effective in a variety of different situations.

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CRITICISMS

Transformational leadership has several weaknesses. One criticism is that it lacks conceptual clarity. Because it covers such a wide range of activities and characteristics—including creating a vision, motivating, being a change agent, building trust, giving nurturance, and acting as a social architect, to name a few—it is difficult to define exactly the parameters of transforma- tional leadership. Specifically, research by Tracey and Hinkin (1998) has shown substantial overlap between each of the Four Is (idealized influence, inspirational motivation, intellectual stimulation, and individualized con- sideration), suggesting that the dimensions are not clearly delimited. Furthermore, the parameters of transformational leadership often overlap with similar conceptualizations of leadership. Bryman (1992), for example, pointed out that transformational and charismatic leadership often are treated synonymously, even though in some models of leadership (e.g., Bass, 1985) charisma is only one component of transformational leadership.

Another criticism revolves around how transformational leadership is mea- sured. Researchers typically have used some version of the MLQ to measure transformational leadership. However, some studies have challenged the validity of the MLQ . In some versions of the MLQ , the four factors of transformational leadership (the Four Is) correlate highly with each other, which means they are not distinct factors (Tejeda, Scandura, & Pillai, 2001). In addition, some of the transformational factors correlate with the transac- tional and laissez-faire factors, which means they may not be unique to the transformational model (Tejeda et al., 2001).

A third criticism is that transformational leadership treats leadership as a personality trait or personal predisposition rather than a behavior that peo- ple can learn (Bryman, 1992, pp. 100–102). If it is a trait, training people in this approach becomes more problematic because it is difficult to teach people how to change their traits. Even though many scholars, including Weber, House, and Bass, emphasized that transformational leadership is concerned with leader behaviors, such as how leaders involve themselves with followers, there is an inclination to see this approach from a trait per- spective. Perhaps this problem is exacerbated because the word transforma- tional creates images of one person being the most active component in the leadership process. For example, even though “creating a vision” involves follower input, there is a tendency to see transformational leaders as vision- aries. There is also a tendency to see transformational leaders as people who have special qualities that transform others. These images accentuate a trait characterization of transformational leadership.

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Fourth, researchers have not established that transformational leaders are actually able to transform individuals and organizations (Antonakis, 2012). There is evidence that indicates that transformational leadership is associ- ated with positive outcomes, such as organizational effectiveness; however, studies have not yet clearly established a causal link between transforma- tional leaders and changes in followers or organizations. A fifth criticism some have made is that transformational leadership is elit- ist and antidemocratic (Avolio, 1999; Bass & Avolio, 1993). Transforma- tional leaders often play a direct role in creating changes, establishing a vision, and advocating new directions. This gives the strong impression that the leader is acting independently of followers or putting himself or herself above the followers’ needs. Although this criticism of elitism has been refuted by Bass and Avolio (1993) and Avolio (1999), who contended that transformational leaders can be directive and participative as well as demo- cratic and authoritarian, the substance of the criticism raises valid questions about transformational leadership. Related to this criticism, some have argued that transformational leadership suffers from a “heroic leadership” bias (Yukl, 1999). Transformational leader- ship stresses that it is the leader who moves followers to do exceptional things. By focusing primarily on the leader, researchers have failed to give attention to shared leadership or reciprocal influence. Followers can influence leaders just as leaders can influence followers. More attention should be directed toward how leaders can encourage followers to challenge the leader’s vision and share in the leadership process. A final criticism of transformational leadership is that it has the potential to be abused. Transformational leadership is concerned with changing people’s values and moving them to a new vision. But who is to determine whether the new directions are good and more affirming? Who decides that a new vision is a better vision? If the values to which the leader is moving his or her followers are not better, and if the set of human values is not more redeeming, then the leadership must be challenged. However, the dynamics of how followers challenge leaders or respond to their visions is not fully understood. There is a need to understand how transformational leaders affect followers psychologically and how leaders respond to followers’ reactions. In fact, Burns argued that understanding this area (i.e., charisma and follower wor- ship) is one of the central problems in leadership studies today (Bailey & Axelrod, 2001). The charismatic nature of transformational leadership pres- ents significant risks for organizations because it can be used for destructive purposes (Conger, 1999; Howell & Avolio, 1993).

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History is full of examples of charismatic individuals who used coercive power to lead people to evil ends. For this reason, transformational leadership puts a burden on individuals and organizations to be aware of how they are being influenced and in what directions they are being asked to go. Christie et al. (2011) warn that astute followers need to be vigilant and pay careful attention to the vision of their leader, whether it is collective or self-focused, whether the leader is tolerant of opposing viewpoints, and whether the leader is caring of followers. The potential for abuse of transformational leadership is mitigated when followers are aware and engaged in how they are being led.

APPLICATION

Rather than being a model that tells leaders what to do, transformational lead- ership provides a broad set of generalizations of what is typical of leaders who are transforming or who work in transforming contexts. Unlike other leader- ship approaches, such as Situational Leadership (discussed in Chapter 5), transformational leadership does not provide a clearly defined set of assump- tions about how leaders should act in a particular situation to be successful. Rather, it provides a general way of thinking about leadership that emphasizes ideals, inspiration, innovations, and individual concerns. Transformational lead- ership requires that leaders be aware of how their own behavior relates to the needs of their followers and the changing dynamics within their organizations. Bass and Avolio (1990a) suggested that transformational leadership can be taught to people at all levels in an organization and that it can positively affect a firm’s performance. It can be used in recruitment, selection and pro- motion, and training and development. It can also be used in improving team development, decision-making groups, quality initiatives, and reorga- nizations (Bass & Avolio, 1994). Programs designed to develop transformational leadership usually require that leaders or their associates take the MLQ (Bass & Avolio, 1990b) or a similar questionnaire to determine the leader’s particular strengths and weaknesses in transformational leadership. Taking the MLQ helps leaders pinpoint areas in which they could improve their leadership. For example, leaders might learn that it would be beneficial if they were more confident in expressing their goals, or that they need to spend more time nurturing followers, or that they need to be more tolerant of opposing viewpoints. The MLQ is the spring- board to helping leaders improve a whole series of their leadership attributes. One particular aspect of transformational leadership that has been given special emphasis in training programs is the process of building a vision. For

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example, it has become quite common for training programs to have leaders write elaborate statements that describe their own five-year career plans and their perceptions of the future directions for their organizations. Working with leaders on vision statements is one way to help them enhance their transformational leadership behavior. Another important aspect of training is teaching leaders to exhibit greater individual consideration and promote intellectual stimulation for their followers. Lowe et al. (1996) found that this is particularly valuable for lower-level leaders in organizations. The desire to provide effective training in how to be more successful in demonstrating transactional and transformational leadership resulted in the development of a guide by Sosik and Jung (2010). This comprehensive, evidence-based approach includes self-assessments, 360-degree feedback, and leadership development planning. Their work serves as a thorough training guide that explains how, when, and why the full range of leadership behaviors work. Overall, transformational leadership provides leaders with information about a full range of their behaviors, from nontransactional to transactional to trans- formational. In the next section, we provide some actual leadership examples to which the principles of transformational leadership can be applied.

CASE STUDIES

In the following section, three brief case studies (Cases 8.1, 8.2, and 8.3) from very different contexts are provided. Each case describes a situation in which transformational leadership is present to some degree. The questions at the end of each case point to some of the unique issues surrounding the use of transformational leadership in ongoing organizations.

CASE 8.1

The Vision Failed High Tech Engineering (HTE) is a 50-year-old family-owned manufactur- ing company with 250 employees that produces small parts for the air- craft industry. The president of HTE is Harold Barelli, who came to the company from a smaller business with strong credentials as a leader in

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advanced aircraft technology. Before Harold, the only other president of HTE was the founder and owner of the company. The organizational structure at HTE was very traditional, and it was supported by a very rich organizational culture.

As the new president, Harold sincerely wanted to transform HTE. He wanted to prove that new technologies and advanced management techniques could make HTE one of the best manufacturing companies in the country. To that end, Harold created a vision statement that was displayed throughout the company. The two-page statement, which had a strong democratic tone, described the overall purposes, directions, and values of the company.

During the first 3 years of Harold’s tenure as president, several major reorganizations took place at the company. These were designed by Harold and a select few of his senior managers. The intention of each reorganization was to implement advanced organizational structures to bolster the declared HTE vision.

Yet the major outcome of each of the changes was to dilute the leader- ship and create a feeling of instability among the employees. Most of the changes were made from the top down, with little input from lower or middle management. Some of the changes gave employees more con- trol in circumstances where they needed less, whereas other changes limited employee input in contexts where employees should have been given more input. There were some situations in which individual work- ers reported to three different bosses, and other situations in which one manager had far too many workers to oversee. Rather than feeling com- fortable in their various roles at HTE, employees began to feel uncertain about their responsibilities and how they contributed to stated goals of the company. The overall effect of the reorganizations was a precipitous drop in worker morale and production.

In the midst of all the changes, the vision that Harold had for the com- pany was lost. The instability that employees felt made it difficult for them to support the company’s vision. People at HTE complained that although mission statements were displayed throughout the company, no one understood in which direction they were going.

To the employees at HTE, Harold was an enigma. HTE was an American company that produced U.S. products, but Harold drove a foreign car. Harold claimed to be democratic in his style of leadership, but he was arbitrary in how he treated people. He acted in a nondirective style toward some people, and he showed arbitrary control toward others. He wanted to be seen as a hands-on manager, but he delegated operational

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control of the company to others while he focused on external customer relations and matters of the board of directors.

At times Harold appeared to be insensitive to employees’ concerns. He wanted HTE to be an environment in which everyone could feel empow- ered, but he often failed to listen closely to what employees were saying.

He seldom engaged in open, two-way communication. HTE had a long, rich history with many unique stories, but the employees felt that Harold either misunderstood or did not care about that history.

Four years after arriving at HTE, Harold stepped down as president after his operations officer ran the company into a large debt and cash-flow crisis. His dream of building HTE into a world-class manufacturing com- pany was never realized.

Questions

1. If you were consulting with the HTE board of directors soon after Harold started making changes, what would you advise them regard- ing Harold’s leadership from a transformational perspective?

2. Did Harold have a clear vision for HTE? Was he able to implement it?

3. How effective was Harold as a change agent and social architect for HTE?

4. What would you advise Harold to do differently if he had the chance to return as president of HTE?

CASE 8.2

An Exploration in Leadership Every year, Dr. Cook, a college professor, leads a group of 25 college students to the Middle East on an archaeological dig that usually lasts about 8 weeks. The participants, who come from big and small colleges throughout the country, usually have little prior knowledge or back- ground in what takes place during an excavation. Dr. Cook enjoys lead- ing these expeditions because he likes teaching students about archaeology and because the outcomes of the digs actually advance his own scholarly work.

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While planning for his annual summer excavation, Dr. Cook told the following story:

This summer will be interesting because I have 10 people returning from last year. Last year was quite a dig. During the first couple of weeks eve- rything was very disjointed. Team members seemed unmotivated and tired. In fact, there was one time early on when it seemed as if nearly half the students were either physically ill or mentally exhausted. Students seemed lost and uncertain about the meaning of the entire project.

For example, it is our tradition to get up every morning at 4:30 a.m. to depart for the excavation site at 5:00 a.m. However, during the first weeks of the dig, few people were ever ready at 5, even after several reminders.

Every year it takes some time for people to learn where they fit with each other and with the purposes of the dig. The students all come from such different backgrounds. Some are from small, private, religious schools, and others are from large state universities. Each comes with a different agenda, different skills, and different work habits. One person may be a good photographer, another a good artist, and another a good surveyor. It is my job to complete the excavation with the resources available to us.

At the end of Week 2, I called a meeting to assess how things were going. We talked about a lot of things including personal things, how our work was progressing, and what we needed to change. The students seemed to appreciate the chance to talk at this meeting. Each of them described his or her special circumstances and hopes for the summer.

I told the students several stories about past digs; some were humorous, and others highlighted accomplishments. I shared my particular interests in this project and how I thought we as a group could accomplish the work that needed to be done at this important historical site. In particular, I stressed two points: (a) that they shared the responsibility for the success- ful outcome of the venture, and (b) that they had independent authority to design, schedule, and carry out the details of their respective assign- ments, with the director and other senior staff available at all times as advisers and resource persons. In regard to the departure time issue, I told the participants that the standard departure time on digs was 5:00 a.m.

Well, shortly after our meeting I observed a real shift in the group atti- tude and atmosphere. People seemed to become more involved in the work, there was less sickness, and there was more camaraderie. All assignments were completed without constant prodding and in a spirit of mutual support. Each morning at 5:00 a.m. everyone was ready to go.

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I find that each year my groups are different. It’s almost as if each of them has a unique personality. Perhaps that is why I find it so challeng- ing. I try to listen to the students and use their particular strengths. It really is quite amazing how these students can develop in 8 weeks. They really become good at archaeology, and they accomplish a great deal.

This coming year will again be different because of the 10 returning “veterans.”

Questions

1. How is this an example of transformational leadership?

2. Where are Dr. Cook’s strengths on the Full Range of Leadership model (see Figure 8.2)?

3. What is the vision Dr. Cook has for the archaeology excavations?

CASE 8.3

Her Vision of a Model Research Center Rachel Adams began as a researcher at a large pharmaceutical company. After several years of observing how clinical drug studies were con- ducted, she realized that there was a need and an opportunity for a research center not connected with a specific pharmaceutical company. In collaboration with other researchers, she launched a new company that was the first of its kind in the country. Within 5 years, Rachel had become president and CEO of the Independent Center for Clinical Research (ICCR). Under Rachel’s leadership, ICCR has grown to a company with revenues of $6 million and profits of $1 million. ICCR employs 100 full-time employees, most of whom are women.

Rachel wants ICCR to continue its pattern of formidable growth. Her vision for the company is to make it a model research center that will blend credible science with efficient and cost-effective clinical trials. To that end, the company, which is situated in a large urban setting, main- tains strong links to academia, industry, and the community.

Rachel and her style have a great deal to do with the success of ICCR. She is a freethinker who is always open to new ideas, opportunities,

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and approaches. She is a positive person who enjoys the nuances of life, and she is not afraid to take risks. Her optimistic approach has had a significant influence on the company’s achievements and its organizational climate. People employed at ICCR claim they have never worked at a place that is so progressive and so positive in how it treats its employees and customers. The women employees at ICCR feel particularly strongly about Rachel’s leadership, and many of them use Rachel as a role model. It is not by accident that the majority (85%) of the people who work at ICCR are women. Her support for women’s concerns is evident in the type of drug studies the company selects to conduct and in her service to national committees on wom- en’s health and research issues. Within ICCR, Rachel has designed an on-site day care program, flextime scheduling for mothers with young children, and a benefit package that gives full health coverage to part-time employees. At a time when most companies are searching for ways to include more women in decision making, ICCR has women in established leadership positions at all levels.

Although Rachel has been extremely effective at ICCR, the success of the company has resulted in many changes that have affected Rachel’s lead- ership at the company.

Rapid growth of ICCR has required that Rachel spend a great deal of time traveling throughout the country. Because of her excessive travel, Rachel has begun to feel distant from the day-to-day operations of ICCR. She has begun to feel as if she is losing her handle on what makes the com- pany tick. For example, although she used to give weekly pep talks to supervisors, she finds that she now gives two formal presentations a year. Rachel also complains of feeling estranged from employees at the com- pany. At a recent directors’ meeting, she expressed frustration that peo- ple no longer called her by her first name, and others did not even know who she was.

Growth at ICCR has also demanded that more planning and decision mak- ing be delegated to department heads. This has been problematic for Rachel, particularly in the area of strategic planning. Rachel finds that the department heads are beginning to shift the focus of ICCR in a direction that contradicts her ideal model of what the company should be and what it is best at doing. Rachel built the company on the idea that ICCR would be a strong blend of credible science and cost-effective clinical tri- als, and she does not want to give up that model. The directors, on the other hand, would like to see ICCR become similar to a standard pharma- ceutical company dedicated primarily to the research and development of new drugs.

(Continued)

Chapter 8 Transformational Leadership 187

Questions

1. What is it about Rachel’s leadership that clearly suggests that she is engaged in transformational leadership?

2. In what ways has the growth of ICCR had an impact on Rachel’s leadership?

3. Given the problems Rachel is confronting as a result of the growth of the company, what should she do to reestablish herself as a transfor- mational leader at ICCR?

LEADERSHIP INSTRUMENT

The most widely used measure of transformational leadership is the Multifactor Leadership Questionnaire (MLQ). An earlier version of the MLQ was developed by Bass (1985), based on a series of interviews he and his associates conducted with 70 senior executives in South Africa. These executives were asked to recall leaders who had raised their aware- ness to broader goals, moved them to higher motives, or inspired them to put others’ interests ahead of their own. The executives were then asked to describe how these leaders behaved—what they did to effect change. From these descriptions and from numerous other interviews with both junior and senior executives, Bass constructed the questions that make up the MLQ. The questions measure followers’ perceptions of a leader’s behavior for each of the factors in the Full Range of Leadership model (see Figure 8.2). Antonakis, Avolio, and Sivasubramaniam (2003) assessed the psychometric properties of the MLQ using a business sample of more than 3,000 raters and found strong support for the validity of the MLQ. They found that the MLQ (Form 5X) clearly distinguished nine factors in the Full Range of Leadership model. Similarly, Hinkin and Schriesheim (2008) examined the empirical properties of the transactional and the nonleadership factors on the MLQ and identified several ways to use the questionnaire to generate more reliable and valid results. Since the MLQ was first designed, it has gone through many revisions, and it continues to be refined to strengthen its reliability and validity. Based on a summary analysis of a series of studies that used the MLQ to predict how transformational leadership relates to outcomes such as effec- tiveness, Bryman (1992) and Bass and Avolio (1994) have suggested that the charisma and motivation factors on the MLQ are the most likely to

188 LEADERSHIP THEORY AND PRACTICE

be related to positive effects. Individualized consideration, intellectual stimulation, and contingent reward are the next most important factors. Management-by-exception in its passive form has been found to be somewhat related to outcomes, and in its active form it has been found to be negatively related to outcomes. Generally, laissez-faire leadership has been found to be negatively related to outcomes such as effectiveness and satisfaction in organizations. We present sample items from the MLQ (Form 5X-short) in this section so that you can explore your beliefs and perceptions about transformational, transactional, and nontransactional leadership. This questionnaire should give you a clearer picture of your own style and the complexity of transfor- mational leadership itself.

Chapter 8 Transformational Leadership 189

Sample Items From the Multifactor Leadership Questionnaire (MLQ) Form 5X-Short

These questions provide examples of the items that are used to evaluate leadership style. The MLQ is provided in both Self and Rater forms. The Self form measures self-perception of leadership behaviors. The Rater form is used to measure leadership. By thinking about the leadership styles as exem- plified below, you can get a sense of your own belief about your leadership.

Key: 0 = Not 1 = Once in 2 = Sometimes 3 = Fairly 4 = Frequently, at all a while often if not always

Transformational Leadership Styles

Idealized Influence I go beyond self-interest for the good 0 1 2 3 4 (Attributes) of the group.

Idealized Influence I consider the moral and ethical 0 1 2 3 4 (Behaviors) consequences of decisions.

Inspirational I talk optimistically about 0 1 2 3 4 Motivation the future.

Intellectual I reexamine critical assumptions 0 1 2 3 4 Stimulation to question whether they are appropriate.

Individualized I help others to develop 0 1 2 3 4 Consideration their strengths.

Transactional Leadership Styles

Contingent Reward I make clear what one can expect 0 1 2 3 4 to receive when performance goals are achieved.

Management by I keep track of all mistakes. 0 1 2 3 4 Exception: Active

Passive/Avoidant Leadership Styles

Management by I wait for things to go wrong before 0 1 2 3 4 Exception: Passive taking action.

Laissez-Faire I avoid making decisions. 0 1 2 3 4

SOURCE: Reproduced by special permission of the publisher, MIND GARDEN, Inc., www .mindgarden.com from the Multifactor Leadership Questionnaire by Bernard M. Bass and Bruce J. Avolio. Copyright © 1995, 2000, 2004 by Bernard M. Bass and Bruce J. Avolio. Further reproduction is prohibited without the publisher’s written consent.

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SUMMARY

One of the most encompassing approaches to leadership—transformational leadership—is concerned with the process of how certain leaders are able to inspire followers to accomplish great things. This approach stresses that leaders need to understand and adapt to the needs and motives of followers. Transformational leaders are recognized as change agents who are good role models, who can create and articulate a clear vision for an organization, who empower followers to meet higher standards, who act in ways that make others want to trust them, and who give meaning to organizational life. Transformational leadership emerged from and is rooted in the writings of Burns (1978) and Bass (1985). The works of Bennis and Nanus (1985) and Kouzes and Posner (1987) are also representative of transformational leadership. Transformational leadership can be assessed through use of the Multifac- tor Leadership Questionnaire (MLQ), which measures a leader’s behavior in seven areas: idealized influence (charisma), inspirational motivation, intellectual stimulation, individualized consideration, contingent reward, management-by-exception, and laissez-faire. High scores on individualized consideration and motivation factors are most indicative of strong trans- formational leadership. There are several positive features of the transformational approach, includ- ing that it is a current model that has received a lot of attention by research- ers, it has strong intuitive appeal, it emphasizes the importance of followers in the leadership process, it goes beyond traditional transactional models and broadens leadership to include the growth of followers, and it places strong emphasis on morals and values. Balancing against the positive features of transformational leadership are several weaknesses. These include that the approach lacks conceptual clarity; it is based on the MLQ , which has been challenged by some research; it creates a framework that implies that transformational leader- ship has a trait-like quality; it is sometimes seen as elitist and undemo- cratic; it suffers from a “heroic leadership” bias; and it has the potential to be used counterproductively in negative ways by leaders. Despite the weaknesses, transformational leadership appears to be a valuable and widely used approach.

Sharpen your skills with SAGE edge at edge.sagepub.com/northouse7e

Chapter 8 Transformational Leadership 191

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Authentic Leadership

DESCRIPTION

Authentic leadership represents one of the newest areas of leadership research. It focuses on whether leadership is genuine and “real.” As the title of this approach implies, authentic leadership is about the authenticity of leaders and their leadership. Unlike many of the theories that we have discussed in this book, authentic leadership is still in the formative phase of development. As a result, authentic leadership needs to be considered more tentatively: It is likely to change as new research about the theory is published. In recent times, upheavals in society have energized a tremendous demand for authentic leadership. The destruction on 9/11, corporate scandals at companies like WorldCom and Enron, and massive failures in the banking industry have all created fear and uncertainty. People feel apprehensive and insecure about what is going on around them, and as a result, they long for bona fide leadership they can trust and for leaders who are honest and good. People’s demands for trustworthy leadership make the study of authentic leadership timely and worthwhile. In addition to the public’s interest, authentic leadership has been intriguing to researchers: It was identified earlier in transformational leadership research but never fully articulated (Bass, 1990; Bass & Steidlmeier, 1999; Burns, 1978; Howell & Avolio, 1993). Furthermore, practitioners had devel- oped approaches to authentic leadership that were not evidence based, and so needed further clarification and testing. In attempts to more fully explore authentic leadership, researchers set out to identify the parameters of authen- tic leadership and more clearly conceptualize it, efforts that continue today.

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Authentic Leadership Defined

On the surface, authentic leadership appears easy to define. In actuality, it is a complex process that is difficult to characterize. Among leadership schol- ars, there is no single accepted definition of authentic leadership. Instead, there are multiple definitions, each written from a different viewpoint and with a different emphasis (Chan, 2005).

One of those viewpoints is the intrapersonal perspective, which focuses closely on the leader and what goes on within the leader. It incorporates the leader’s self-knowledge, self-regulation, and self-concept. In Shamir and Eilam’s (2005) description of the intrapersonal approach, they suggest that authentic leaders exhibit genuine leadership, lead from conviction, and are originals, not copies. This perspective emphasizes a leader’s life experiences and the meaning he or she attaches to those experiences as being critical to the development of the authentic leader.

A second way of defining authentic leadership is as an interpersonal process. This perspective outlines authentic leadership as relational, created by leaders and followers together (Eagly, 2005). It results not from the leader’s efforts alone, but also from the response of followers. Authenticity emerges from the interactions between leaders and followers. It is a reciprocal process because leaders affect followers and followers affect leaders.

Finally, authentic leadership can be defined from a developmental perspective, which is exemplified in the work of Avolio and his associates (Avolio & Gardner, 2005; Gardner, Avolio, & Walumbwa, 2005; Walumbwa, Avolio, Gardner, Wernsing, & Peterson, 2008). This perspective, which underpins the approaches to authentic leadership discussed in the following section, views authentic leadership as something that can be nurtured in a leader, rather than as a fixed trait. Authentic leadership develops in people over a lifetime and can be triggered by major life events, such as a severe illness or a new career.

Taking a developmental approach, Walumbwa et al. (2008) conceptualized authentic leadership as a pattern of leader behavior that develops from and is grounded in the leader’s positive psychological qualities and strong ethics. They suggest that authentic leadership is composed of four distinct but related components: self-awareness, internalized moral perspective, balanced processing, and relational transparency (Avolio, Walumbwa, & Weber, 2009). Over a lifetime, authentic leaders learn and develop each of these four types of behavior.

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Chapter 9 Authentic Leadership 197

Approaches to Authentic Leadership

Formulations about authentic leadership can be differentiated into two areas: (1) the practical approach, which evolved from real-life examples and training and development literature; and (2) the theoretical approach, which is based on findings from social science research. Both approaches offer interesting insights about the complex process of authentic leadership.

Practical Approach

Books and programs about authentic leadership are popular today; people are interested in the basics of this type of leadership. Specifically, they want to know the “how to” steps to become an authentic leader. In this section, we will discuss Bill George’s authentic leadership approach (2003).

Bill George’s Authentic Leadership Approach. The authentic leadership approach developed by George (2003; George & Sims, 2007) focuses on the characteristics of authentic leaders. George describes, in a practical way, the essential qualities of authentic leadership and how individuals can develop these qualities if they want to become authentic leaders. Based on his experience as a corporate executive and through interviews with a diverse sample of 125 successful leaders, George found that authen- tic leaders have a genuine desire to serve others, they know themselves, and they feel free to lead from their core values. Specifically, authentic leaders demonstrate five basic characteristics: (1) They understand their purpose, (2) they have strong values about the right thing to do, (3) they establish trusting relationships with others, (4) they demonstrate self-discipline and act on their values, and (5) they are passionate about their mission (i.e., act from their heart) (Figure 9.1; George, 2003). Figure 9.1 illustrates five dimensions of authentic leadership identified by George: purpose, values, relationships, self-discipline, and heart. The figure also illustrates each of the related characteristics—passion, behavior, con- nectedness, consistency, and compassion—that individuals need to develop to become authentic leaders. In his interviews, George found that authentic leaders have a real sense of purpose. They know what they are about and where they are going. In addi- tion to knowing their purpose, authentic leaders are inspired and intrinsi- cally motivated about their goals. They are passionate individuals who have a deep-seated interest in what they are doing and truly care about their work.

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A good example of an authentic leader who exhibited passion about his goals was Terry Fox, a cancer survivor, whose leg was amputated after it was over- come by bone cancer. Using a special leg prosthesis, Terry attempted to run across Canada, from the Atlantic to the Pacific, to raise awareness and money for cancer research. Although he died before he finished his run, his courage and passion affected the lives of millions of people. He also accom- plished his goals to increase cancer awareness and to raise money for cancer research. Today, the Terry Fox Foundation is going strong and has raised more than $400 million (Canadian) for cancer research (www.terryfox.org). Of the dimensions and characteristics in Figure 9.1, Terry Fox clearly dem- onstrated purpose and passion in his leadership. Authentic leaders understand their own values and behave toward others based on these values. Stated another way, George suggests that authentic leaders know their “True North.” They have a clear idea of who they are,

The Authentic

Leader

Passion

Purpose

He ar

Self-Discipline Relat ion

shi ps

ValuesCo m

pa ss

io n

Consistency Con nec

ted ne

Behavior

Figure 9.1 Authentic Leadership Characteristics

Chapter 9 Authentic Leadership 199

where they are going, and what the right thing is to do. When tested in difficult situations, authentic leaders do not compromise their values, but rather use those situations to strengthen their values.

An example of a leader with a strong set of values is Nobel Peace Prize Laureate Nelson Mandela. Mandela was a deeply moral man with a strong conscience. While fighting to abolish apartheid in South Africa, he was unyielding in his pursuit of justice and equality for all. When he was in prison and offered early release in exchange for denouncing his viewpoint, he chose to remain incarcerated rather than compromise his position. Nelson Mandela knew who he was at his core. He knew his values, and his leadership reflected those values.

A third characteristic of authentic leadership in the George approach is strong relationships. Authentic leaders have the capacity to open themselves up and establish a connection with others. They are willing to share their own story with others and listen to others’ stories. Through mutual disclosure, leaders and followers develop a sense of trust and closeness. George argued that people today want to have access to their leaders and they want their leaders to be open with them. In a sense, people are asking leaders to soften the boundary around their leadership role and to be more transparent. People want to have a trusting relationship with their leaders. In exchange, people are willing to give leaders greater loyalty and commitment. As we discussed in Chapter 7 (leader–member exchange theory), effective leader–follower relationships are marked by high-quality communication in which leaders and followers demonstrate a high degree of mutual trust, respect, and obligation toward each other. Leaders and followers are tied together in productive ways that go beyond the stereotypical leader–follower relationship. This results in strong leader–member relationships, greater understanding, and higher productivity.

Self-discipline is another dimension of authentic leadership, and is the qual- ity that helps leaders to reach their goals. Self-discipline gives leaders focus and determination. When leaders establish objectives and standards of excellence, self-discipline helps them to reach these goals and to keep every- one accountable. Furthermore, self-discipline gives authentic leaders the energy to carry out their work in accordance with their values. Like long-distance runners, authentic leaders with self-discipline are able to stay focused on their goals. They are able to listen to their inner compass and

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can discipline themselves to move forward, even in challenging circum- stances. In stressful times, self-discipline allows authentic leaders to remain cool, calm, and consistent. Because disciplined leaders are predictable in their behavior, other people know what to expect and find it easier to communi- cate with them. When the leader is self-directed and “on course,” it gives other people a sense of security. Last, the George approach identifies compassion and heart as important aspects of authentic leadership. Compassion refers to being sensitive to the plight of others, opening one’s self to others, and being willing to help them. George (2003, p. 40) argued that as leaders develop compassion, they learn to be authentic. Leaders can develop compassion by getting to know others’ life stories, doing community service projects, being involved with other racial or ethnic groups, or traveling to developing countries (George, 2003). These activities increase the leader’s sensitivity to other cultures, back- grounds, and living situations. In summary, George’s authentic leadership approach highlights five impor- tant features of authentic leaders. Collectively, these features provide a practi- cal picture of what people need to do to become authentic in their leadership. Authentic leadership is a lifelong developmental process, which is formed and informed by each individual’s life story.

Theoretical Approach

Although still in its initial stages of development, a theory of authentic lead- ership is emerging in social science literature. In this section, we identify the basic components of authentic leadership and describe how these compo- nents are related to one another.

Background to the Theoretical Approach. Although people’s interest in “authenticity” is probably timeless, research on authentic leadership is very recent, with the first article appearing in 2003. The primary catalyst for this research was a leadership summit at the University of Nebraska. This summit was sponsored by the Gallup Leadership Institute, and focused on the nature of authentic leadership and its development. From the summit, two sets of publications emerged: (1) a special issue of Leadership Quarterly in the summer of 2005, and (2) Monographs in Leadership and Management, titled “Authentic Leadership Theory and Process: Origins, Effects and Development,” also published in 2005. Prior to the summit, Luthans and Avolio (2003) published an article on authentic leadership development

Authenticity and Brand

Chapter 9 Authentic Leadership 201

and positive organizational scholarship. The article also helped to ignite this area of research.

Interest in authentic leadership increased during a time in which there was a great deal of societal upheaval and instability in the United States. The attacks of 9/11, widespread corporate corruption, and a troubled economy all created a sense of uncertainty and anxiety in people about leadership. Widespread unethical and ineffective leadership necessitated the need for more humane, constructive leadership that served the common good (Fry & Whittington, 2005; Luthans & Avolio, 2003).

In addition, researchers felt the need to extend the work of Bass (1990) and Bass and Steidlmeier (1999) regarding the meaning of authentic transforma- tional leadership. There was a need to operationalize the meaning of authentic leadership and create a theoretical framework to explain it. To develop a theory of authentic leadership, researchers drew from the fields of leadership, positive organizational scholarship, and ethics (Cooper, Scandura, & Schriesheim, 2005; Gardner et al., 2005).

A major challenge confronting researchers in developing a theory was to define the construct and identify its characteristics. As we discussed earlier in the chapter, authentic leadership has been defined in multiple ways, with each definition emphasizing a different aspect of the process. For this chap- ter, we have selected the definition set forth in an article by Walumbwa et al. (2008), who defined authentic leadership as “a pattern of leader behavior that draws upon and promotes both positive psychological capacities and a positive ethical climate, to foster greater self-awareness, an internalized moral perspective, balanced processing of information, and relational trans- parency on the part of leaders working with followers, fostering positive self-development” (p. 94). Although complex, this definition captures the current thinking of scholars regarding the phenomenon of authentic leader- ship and how it works. In the research literature, different models have been developed to illustrate the process of authentic leadership. Gardner et al. (2005) created a model that frames authentic leadership around the developmental processes of leader and follower self-awareness and self-regulation. Ilies, Morgeson, and Nahrgang (2005) constructed a multicomponent model that discusses the impact of authenticity on leaders’ and followers’ happiness and well-being. In contrast, Luthans and Avolio (2003) formulated a model that explains authentic lead- ership as a developmental process. In this chapter, we will present a basic model of authentic leadership that is derived from the research literature that

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focuses on the core components of authentic leadership. Our discussion will focus on authentic leadership as a process.

Components of Authentic Leadership. In an effort to further our understanding of authentic leadership, Walumbwa and associates (2008) conducted a comprehensive review of the literature and interviewed groups of content experts in the field to determine what components constituted authentic leadership and to develop a valid measure of this construct. Their research identified four components: self-awareness, internalized moral perspective, balanced processing, and relational transparency (Figure 9.2). Together, these four components form the foundation for a theory of authentic leadership. Self-awareness refers to the personal insights of the leader. It is not an end in itself but a process in which individuals understand themselves, including their strengths and weaknesses, and the impact they have on others. Self- awareness includes reflecting on your core values, identity, emotions, motives,

Figure 9.2 Authentic Leadership

Internalized Moral Perspective

Authentic Leadership

Balanced Processing

Relational Transparency

Self-Awareness

Critical Life

Events

Positive Psychological Capacities

Moral Reasoning

SOURCE: Adapted from Luthans, F., & Avolio, B. J. (2003). Authentic leadership development. In K. S. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship (pp. 241– 258). San Francisco: Berrett-Koehler; and Gardner, W. L., Avolio, B. J., Luthans, F., May, D. R., & Walumbwa, F. O. (2005). “Can you see the real me?” A self-based model of authentic leader and follower development. Leadership Quarterly, 16, 343–372.

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and goals, and coming to grips with who you really are at the deepest level. In addition, it includes being aware of and trusting your own feelings (Kernis, 2003). When leaders know themselves and have a clear sense of who they are and what they stand for, they have a strong anchor for their decisions and actions (Gardner et al., 2005). Other people see leaders who have greater self-awareness as more authentic. Internalized moral perspective refers to a self-regulatory process whereby indi- viduals use their internal moral standards and values to guide their behavior rather than allow outside pressures to control them (e.g., group or societal pressure). It is a self-regulatory process because people have control over the extent to which they allow others to influence them. Others see leaders with an internalized moral perspective as authentic because their actions are con- sistent with their expressed beliefs and morals. Balanced processing is also a self-regulatory behavior. It refers to an individu- al’s ability to analyze information objectively and explore other people’s opinions before making a decision. It also means avoiding favoritism about certain issues and remaining unbiased. Balanced processing includes solicit- ing viewpoints from those who disagree with you and fully considering their positions before taking your own action. Leaders with balanced processing are seen as authentic because they are open about their own perspectives, but are also objective in considering others’ perspectives. Relational transparency refers to being open and honest in presenting one’s true self to others. It is self-regulatory because individuals can control their transparency with others. Relational transparency occurs when individuals share their core feelings, motives, and inclinations with others in an appropri- ate manner (Kernis, 2003). It includes the individuals showing both positive and negative aspects of themselves to others. In short, relational transparency is about communicating openly and being real in relationships with others. Fundamentally, authentic leadership comprises the above four factors— self-awareness, internalized moral perspective, balanced processing, and rela- tional transparency. These factors form the basis for authentic leadership.

Factors That Influence Authentic Leadership. There are other factors such as positive psychological capacities, moral reasoning, and critical life events that influence authentic leadership (Figure 9.2). The four key positive psychological attributes that have an impact on authentic leadership—confidence, hope, optimism, and resilience—have been drawn from the fields of positive psychology and positive organizational behavior

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(Table 9.1; Luthans & Avolio, 2003). Positive attributes predispose or enhance a leader’s capacity to develop the components of authentic leader- ship discussed in the previous section. Each of these attributes has a trait- like and a state-like quality. They are trait-like because they may characterize a relatively fixed aspect of someone’s personality that has been evident throughout his or her life (e.g., extraversion), and they are state-like because, with training or coaching, individuals are capable of developing or changing their characteristics. Table 9.1 Related Positive Psychological Capacities

Confidence

Hope Optimism Resilience

SOURCE: Luthans, F., & Avolio, B. J. (2003). Authentic leadership development. In K. S. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship (pp. 241– 258). San Francisco: Berrett-Koehler.

Confidence refers to having self-efficacy—the belief that one has the ability to successfully accomplish a specified task. Leaders who have confidence are more likely to be motivated to succeed, to be persistent when obstacles arise, and to welcome a challenge (Bandura, 1997; Luthans & Avolio, 2003). Hope is a positive motivational state based on willpower and goal planning (Luthans & Avolio, 2003). Authentic leaders with hope have goals they know can be accomplished; their hope inspires followers to trust them and believe in their goals. Optimism refers to the cognitive process of viewing situations from a positive light and having favorable expectations about the future. Leaders with optimism are positive about their capabilities and the outcomes they can achieve. They approach life with a sense of abundance rather than scarcity (Covey, 1990). Resilience is the capacity to recover from and adjust to adverse situations. It includes the ability to positively adapt to hardships and suffering. During difficult times, resilient people are able to bounce back from challenging situations and feel strengthened and more resourceful as a result of them (Sutcliffe & Vogus, 2003). Moral reasoning is another factor that can influence authentic leadership (Figure 9.2). It is the capacity to make ethical decisions about issues of right or wrong and good or bad. Developing the capacity for moral reasoning is a lifelong process. Higher levels of moral reasoning make it possible for the authentic leader to make decisions that transcend individual differences and align individuals toward a common goal. They enable leaders to be selfless

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and make judgments that serve the greater good of the group, organization, or community. Moral reasoning capacity also enables authentic leaders to use this ability to promote justice and achieve what is right for a community. A final factor related to authentic leadership is critical life events (Figure 9.2). Critical events are major events that shape people’s lives. They can be positive events, like receiving an unexpected promotion, having a child, or reading an important book; or they can be negative events, like being diagnosed with cancer, getting a negative year-end evaluation, or having a loved one die. Crit- ical life events act as catalysts for change. Shamir and Eilam (2005) argued that authentic leadership rests heavily on the insights people attach to their life experiences. When leaders tell their life stories, they gain greater self-knowledge, more clarity about who they are, and a better understanding of their role. By understanding their own life experiences, leaders become more authentic. Critical life events also stimulate growth in individuals and help them become stronger leaders (Luthans & Avolio, 2003). For example, Howard Schultz (founder and CEO of Starbucks) tells a story about when he was little: His father, who was a delivery driver, fell and was hurt on the job. His father did not have health insurance or worker’s compensation. Seeing the problems that resulted from his father’s difficulties, when Schultz built Star- bucks he provided comprehensive health insurance for employees who worked as few as 20 hours a week. Schultz’s style of leadership was triggered by his childhood experience. As the theory of authentic leadership develops further, other antecedent factors that influence the process may be identified. To date, however, it is positive psychological capacities, moral reasoning capacities, and critical life events that have been identified as factors that are influential in a person’s ability to become an authentic leader.

HOW DOES AUTHENTIC LEADERSHIP THEORY WORK?

In this chapter, we have discussed authentic leadership from a practical and theoretical perspective. Both perspectives describe authentic leadership as a developmental process that forms in leaders over time; however, both per- spectives provide different descriptions for how authentic leadership works. The practical approach provides prescriptions for how to be authentic and how to develop authentic leadership. For example, the George approach (2003)

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focuses on five characteristics leaders should develop to become authentic leaders. More specifically, George advocates that leaders become more purpose- ful, value centered, relational, self-disciplined, and compassionate. The essence of authentic leadership is being a leader who strongly demonstrates these five qualities. Rather than simple prescriptions, the theoretical approach describes what authentic leadership is and what accounts for it. From this perspective, authentic leadership works because leaders demonstrate self-awareness, an internalized moral perspective, balanced processing, and relational transparency. Leaders develop these attributes through a lifelong process that is often influenced by critical life events. In addition, the literature suggests that positive psychological characteristics and moral reasoning have a significant impact on authentic leaders. Authentic leadership is a complex process that emphasizes the development of qualities that help leaders to be perceived as trustworthy and believable by their followers. The leader’s job is to learn to develop these qualities and apply them to the common good as he or she serves others.

STRENGTHS

Although it is in its early stages of development, the authentic leadership approach has several strengths. First, it fulfills an expressed need for trust- worthy leadership in society. During the past 20 years, failures in public and private leadership have created distrust in people. Authentic leadership helps to fill a void and provides an answer to people who are searching for good and sound leadership in an uncertain world. Second, authentic leadership provides broad guidelines for individuals who want to become authentic leaders. Both the practical and theoretical approaches clearly point to what leaders should do to become authentic leaders. Social science literature emphasizes that it is important for leaders to have self-awareness, an internalized moral perspective, balanced process- ing, and relational transparency to be authentic. Taken together, these approaches provide a map for becoming an authentic leader. Third, similar to transformational and servant leadership, authentic leadership has an explicit moral dimension. Underlying both the practical and theoretical approaches is the idea that authenticity requires leaders to do what is “right” and “good” for their followers and society. Authentic leaders understand their own values, place followers’ needs above their own, and

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work with followers to align their interests in order to create a greater common good. Fourth, authentic leadership emphasizes that authentic values and behaviors can be developed in leaders over time. Authentic leadership is not an attri- bute that only some people exhibit: Everyone can develop authenticity and learn to be more authentic. For example, leaders can learn to become more aware and transparent, or they can learn to be more relational and other- directed. Leaders can also develop moral reasoning capacities. Furthermore, Luthans and Avolio (2003) contended that leaders could learn to develop positive psychological capacities such as confidence, hope, optimism, and resilience, and could use these to create a positive organizational climate. They contended that there are many ways that leaders can learn to become authentic leaders over a lifetime. Finally, authentic leadership can be measured using the Authentic Leader- ship Questionnaire (ALQ). The ALQ is a validated, theory-based instru- ment comprising 16 items that measure four factors of authentic leadership (Avolio et al., 2009; Walumbwa et al., 2008). As research moves forward in refining authentic leadership theory, it is valuable to have an established instrument of this construct that is theory-based and can be used to measure authentic leadership in future research.

CRITICISMS

Authentic leadership is still in the formative stages of development, and a number of questions still need to be addressed about the theory. First, the concepts and ideas presented in George’s practical approach are not fully substantiated. While the practical approach is interesting and offers insight on authentic leadership, it is not built on a broad empirical base, nor has it been tested for validity. Without research support, the ideas set forth in the practical approach should be treated cautiously as explanations of the authentic leadership process. Second, the moral component of authentic leadership is not fully explained. Whereas authentic leadership implies that leaders are motivated by higher- order end values such as justice and community, the way that these values function to influence authentic leadership is not clear. For example, how are a leader’s values related to a leader’s self-awareness? Or, what is the path or underlying process through which moral values affect other components of authentic leadership? In its present form, authentic leadership does not offer thorough answers to these questions.

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Third, researchers have questioned whether positive psychological capacities should be included as components of authentic leadership. Although there is an interest in the social sciences to study positive human potential and the best of the human condition (Cameron, Dutton, & Quinn, 2003), the ratio- nale for including positive psychological capacities as an inherent part of authentic leadership has not been clearly explained by researchers. In addi- tion, some have argued that the inclusion of positive leader capacities in authentic leadership broadens the construct of authentic leadership too much and makes it difficult to measure (Cooper et al., 2005). At this point in the development of research on authentic leadership, the role of positive psycho- logical capacities in authentic leadership theory needs further clarification. Finally, it is not clear how authentic leadership results in positive organi- zational outcomes. Given that it is a new area of research, it is not unex- pected that there are few data on outcomes, but these data are necessary to substantiate the value of the theory. Although authentic leadership is intuitively appealing on the surface, questions remain about whether this approach is effective, in what contexts it is effective, and whether authen- tic leadership results in productive outcomes. Relatedly, it is also not clear in the research whether authentic leadership is sufficient to achieve orga- nizational goals. For example, can an authentic leader who is disorganized and lacking in technical competence be an effective leader? Authenticity is important and valuable to good leadership, but how authenticity relates to effective leadership is unknown. Clearly, future research should be con- ducted to explore how authentic leadership is related to organizational outcomes.

APPLICATION

Because authentic leadership is still in the early phase of its development, there has been little research on strategies that people can use to develop or enhance authentic leadership behaviors. While there are prescriptions set forth in the practical approach, there is little evidence-based research on whether these prescriptions or how-to strategies actually increase authentic leadership behavior. In spite of the lack of intervention research, there are common themes from the authentic leadership literature that may be applicable to organizational or practice settings. One theme common to all of the formulations of authentic leadership is that people have the capacity to learn to be authentic

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leaders. In their original work on authentic leadership, Luthans and Avolio (2003) constructed a model of authentic leadership development. Concep- tualizing it as a lifelong learning process, they argued that authentic leader- ship is a process that can be developed over time. This suggests that human resource departments may be able to foster authentic leadership behaviors in employees who move into leadership positions. Another theme that can be applied to organizations is the overriding goal of authentic leaders to try to do the “right” thing, to be honest with themselves and others, and to work for the common good. Authentic leadership can have a positive impact in organizations. For example, Cianci, Hannah, Rob- erts, and Tsakumis (2014) investigated the impact of authentic leadership on followers’ morality. Based on the responses of 118 MBA students, they found that authentic leaders significantly inhibited followers from making unethi- cal choices in the face of temptation. Authentic leadership appears to be a critical contextual factor that morally strengthens followers. Cianci et al. suggest that the four components of authentic leadership (i.e., self- awareness, internalized moral perspective, balanced processing, and rela- tional transparency) should be developed in organizational leadership to increase ethical organizational behavior. Last, authentic leadership is shaped and reformed by critical life events that act as triggers to growth and greater authenticity. Being sensitive to these events and using them as springboards to growth may be relevant to many people who are interested in becoming leaders who are more authentic.

CASE STUDIES

The following section provides three case studies (Cases 9.1, 9.2, and 9.3) of individuals who demonstrate authentic leadership. The first case is about Sally Helgesen, author of The Female Advantage: Women’s Ways of Leadership (1990). The second case is about Greg Mortenson and how his mission to promote schools and peace in Pakistan and Afghanistan came under fire when he was accused of lying and financial impropriety. The final case is about Betty Ford, former First Lady of the United States, and her work in the areas of breast cancer awareness and substance abuse treatment. At the end of each of the cases, questions are provided to help you analyze the case using ideas from authentic leadership.

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CASE 9.1

Am I Really a Leader? Sally Helgesen was born in the small Midwestern town of Saint Cloud, Minnesota. Her mother was a housewife who later taught English, and her father was a college professor of speech. After attending a local state college, where she majored in English and comparative religion, Sally spread her wings and moved to New York, inspired by the classic film Breakfast at Tiffany’s.

Sally found work as a writer, first in advertising and then as an assistant to a columnist at the then-influential Village Voice. She contributed free- lance articles to magazines such as Harper’s, Glamour, Vogue, Fortune, and Inside Sports. She also returned to school, completing a degree in classics at Hunter College and taking language courses at the city gradu- ate center in preparation for a PhD in comparative religion. She envi- sioned herself as a college professor, but also enjoyed freelancing. She felt a strong dichotomy within her, part quiet scholar and part footloose dreamer. The conflict bothered her, and she wondered how she would resolve it. Choosing to be a writer—actually declaring herself to be one— seemed scary, grandiose, and fraudulent.

Then one day, while walking on a New York side street in the rain, Sally saw an adventuresome black cat running beside her. It reminded her of Holly Golightly’s cat in Breakfast at Tiffany’s, an emblem in the movie for Holly’s dreamy temperament and rootlessness. It made her realize how much the freedom and independence offered by her “temporary” career as a writer suited her temperament. Sally told the cat she was a writer—she’d never been able to say the words before—and decided she was going to commit to full-time writing, at least for a time. When she saw the opportunity to cover a prominent murder trial in Fort Worth, Texas, she took it.

While covering the trial, Sally became intrigued with the culture of Texas, and decided she wanted to write a book on the role of independent oil producers in shaping the region. Doing so required a huge expenditure of time and money, and for almost a year Sally lived out of the trunk of her car, staying with friends in remote regions all over Texas. It was lonely and hard and exhilarating, but Sally was determined to see the project through. When the book, Wildcatters (1981), was published, it achieved little recognition, but Sally felt an enormous increase in confidence and commitment as a result of having finished the book. It strengthened her conviction that, for better or worse, she was a writer.

Sally moved back to New York and continued to write articles and search around for another book. She also began writing speeches for the CEO at a Fortune 500 company. She loved the work, and particularly enjoyed being an observer of office politics, even though she did not perceive

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herself to be a part of them. Sally viewed her role as being an “outsider looking in,” an observer of the culture. She sometimes felt like an actor in a play about an office, but this detachment made her feel professional rather than fraudulent.

As a speechwriter, Sally spent a lot of time interviewing people in the companies she worked for. Doing so made her realize that men and women often approach their work in fundamentally different ways. She also became convinced that many of the skills and attitudes women brought to their work were increasingly appropriate for the ways in which organizations were changing, and that women had certain advan- tages as a result. She also noticed that the unique perspectives of women were seldom valued by CEOs or other organizational leaders, who could have benefited if they had better understood and been more attentive to what women had to offer.

These observations inspired Sally to write another book. In 1988, she signed a contract with a major publisher to write a book on what women had to contribute to organizations. Until then, almost everything written about women at work focused on how they needed to change and adapt. Sally felt strongly that if women were encouraged to emphasize the negative, they would miss a historic opportunity to help lead organ- izations in a time of change. The time was right for this message, and The Female Advantage: Women’s Ways of Leadership (1990) became very successful, topping a number of best-seller charts and remaining steadily in print for nearly 20 years. The book’s prominence resulted in numerous speaking and consulting opportunities, and Sally began traveling the world delivering seminars and working with a variety of clients.

This acclaim and visibility were somewhat daunting to Sally. While she recognized the value of her book, she also knew that she was not a social scientist with a body of theoretical data on women’s issues. She saw her- self as an author rather than an expert, and the old questions about fraudulence that she had dealt with in her early years in New York began to reassert themselves in a different form. Was she really being authentic? Could she take on the mantle of leadership and all it entailed? In short, she wondered if she could be the leader that people seemed to expect.

The path Sally took to answer these questions was simply to present herself for who she was. She was Sally Helgesen, an outsider looking in, a skilled and imaginative observer of current issues. For Sally, the path to leadership did not manifest itself in a step-by-step process. Sally’s leadership began with her own journey of finding herself and accepting her personal authen- ticity. Through this self-awareness, she grew to trust her own expertise as a writer with a keen eye for current trends in organizational life.

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Sally continues to be an internationally recognized consultant and speaker on contemporary issues, and has published five books. She remains uncertain about whether she will finish her degree in compara- tive religion and become a college professor, but always keeps in mind the career of I. F. Stone, an influential political writer in the 1950s and 1960s who went back to school and got an advanced degree in classics at the age of 75.

Questions

1. Learning about one’s self is an essential step in becoming an authen- tic leader. What role did self-awareness play in Sally Helgesen’s story of leadership?

2. How would you describe the authenticity of Sally Helgesen’s leadership?

3. At the end of the case, Sally Helgesen is described as taking on the “mantle of leadership.” Was this important for her leadership? How is taking on the mantle of leadership related to a leader’s authentic- ity? Does every leader reach a point in his or her career where embrac- ing the leadership role is essential?

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CASE 9.2

A Leader Under Fire (The previous edition of this book includes a case study outlining Greg Mortenson’s creation of the Central Asia Institute and highlighting his authentic leadership qualities in more detail. For an additional perspec- tive on Mortenson, you can access the original case study at www.sage pub.com/northouse6e.)

By 2011, there were few people who had never heard of Greg Mortenson. He was the subject of two best-selling books, Three Cups of Tea (2006, with David O. Relin) and Stones Into Schools (2009), which told how the former emergency trauma room nurse had become a hero who built schools in rural areas of Afghanistan and Pakistan.

His story was phenomenal: Lost and sick after attempting to scale K2, Greg was nursed back to health by the villagers of remote Korphe, Afghanistan. Greg promised to build the village a school, a monumental effort that took him three years as he learned to raise money, navigate the foreign culture, and build a bridge above a 60-foot-deep chasm. His

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success led him to create the Central Asia Institute (CAI), a nonprofit organization that “empowers communities of Central Asia through lit- eracy and education, especially for girls, promotes peace through educa- tion, and conveys the importance of these activities globally.” By 2011, the CAI had successfully established or supported more than 170 schools in Pakistan and Afghanistan, and helped to educate more than 68,000 students (CAI, 2011a).

Greg’s story seemed too good to be true. In April 2011, television news show 60 Minutes and author Jon Krakauer alleged that it was. 60 Minutes accused Greg of misusing money and benefitting excessively from the CAI. The show’s reporter visited schools the CAI had built overseas and claimed that he could not find six of the schools and that others were abandoned. The show featured an interview with Krakauer, who claimed Greg had fabricated parts of his best-selling book, Three Cups of Tea. When 60 Minutes approached Greg for comment at a book signing, he refused to talk to the program.

The next day, Krakauer (Into Thin Air [1997] and Under the Banner of Heaven [2003]) published a short online book, Three Cups of Deceit (2011), in which he claimed Greg lied many times in Three Cups of Tea, starting with his initial tale of being in Korphe.

Greg and the CAI were caught in a firestorm of media and public scrutiny. An investigation into the alleged financial improprieties was launched by Montana’s attorney general (the CAI is based in Bozeman), and two Montana legislators filed a $5 million class action lawsuit claiming Greg fooled 4 million people into buying his books.

Greg withdrew from the public eye. The day the 60 Minutes program aired, he posted a letter on the CAI website saying he stood by his books and claiming the news show “paints a distorted picture using inaccurate information, innuendo and a microscopic focus on one year’s (2009) IRS 990 financial, and a few points in the book Three Cups of Tea that occurred almost 18 years ago” (CAI, 2011b). Many criticized the organiza- tion’s founder for not more aggressively defending himself.

What many people did not know, however, was that two days before the 60 Minutes segment appeared, Greg had been diagnosed with a hole and a large aneurysm in his heart and was scheduled for open-heart surgery in the next few months. Meanwhile, the CAI worked to ensure its transparency by posting its tax returns and a master list of projects and their status. The report documented 210 schools, with 17 of those receiving “full support” from the CAI, which includes teachers’ salaries, supplies, books, and furniture and monitoring by CAI contractors (Flandro, 2011).

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The attorney general investigation concluded in 2012 and determined that Greg as well as CAI board members had mismanaged the CAI, and that Greg had personally profited from it. In a settlement, Greg agreed to pay $1 million to the CAI for expenses he incurred that were deemed as per- sonal. The attorney general’s conclusions did not address the allegations that Mortenson fabricated parts of his book. While he continues to be a CAI employee, Greg is not allowed to have any financial oversight for the organization or sit on its board of directors (Flandro, 2012).

Despite the controversy and subsequent finding of wrongdoing, former CAI board member Andrew Marcus hopes the public will consider what Greg and the organization have accomplished.

“It’s hard to imagine anyone who’s done more for education in that part of the world,” Marcus has said. “It took a real human being to do that” (Flandro, 2011).

Questions

1. Would you describe Greg Mortenson as an authentic leader? Explain your answer.

2. In the chapter, we discussed moral reasoning and transparency as components of authentic leadership. Do you think Greg exhibited these components as part his leadership?

3. How was Greg’s response to the allegations against him characteristic of an authentic leader?

4. How did the outcome of the investigation affect the authenticity of Greg Mortenson’s leadership?

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CASE 9.3

The Reluctant First Lady Betty Ford admits that August 9, 1974, the day her husband was sworn in as the 38th President of the United States, was “the saddest day of my life” (Ford, 1978, p. 1).

Elizabeth Bloomer Ford was many things—a former professional dancer and dance teacher, the mother of four nearly grown children, the wife of 13-term U.S. Congressman Gerald “Jerry” R. Ford who was looking

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forward to their retirement—but she never saw being the country’s First Lady as her destiny.

As she held the Bible her husband’s hand rested on while he took the oath of office, Betty began a journey in which she would become many more things: a breast cancer survivor, an outspoken advocate of women’s rights, a recovering alcoholic and addict, and cofounder and president of the Betty Ford Center, a nonprofit treatment center for substance abuse.

The Fords’ path to the White House began in October 1973, when Jerry was tapped to replace then-U.S. Vice President Spiro Agnew who had resigned. After only 9 months in that role, Jerry became the U.S. President after Richard M. Nixon left office amidst the Watergate scandal.

In her first days as the First Lady, Betty became known for her openness and candor. At the time, women were actively fighting for equal rights in the workplace and in society. Less than half of American women were employed outside the home, and women’s earnings were only 38% of their male counterparts’ (Spraggins, 2005). Betty raised a number of eye- brows in her first press conference, when she spoke out in support of abortion rights, women in politics, and the Equal Rights Amendment.

Betty hadn’t even been in the White House a month when she was diag- nosed with breast cancer. She again broke with social conventions and spoke openly about the diagnosis and treatment for a disease that was not widely discussed in public. With her cooperation, Newsweek maga- zine printed a complete account of her surgery and treatment, which included a radical mastectomy. This openness helped raise awareness of breast cancer screening and treatment options and created an atmos- phere of support and comfort for other women fighting the disease.

“Lying in the hospital, thinking of all those women going for cancer checkups because of me, I’d come to recognize more clearly the power of the woman in the White House,” she said in her first autobiography, The Times of My Life. “Not my power, but the power of the position, a power which could be used to help” (Ford, 1978, p. 194).

After her recuperation, Betty made good use of that newfound power. She openly supported and lobbied for passage of the Equal Rights Amendment, a bill that would ensure that “equality of rights under the law shall not be denied or abridged by the United States or by any state on account of sex” (Francis, 2009).

In an interview with 60 Minutes, Betty drew the ire of many conservatives when she candidly shared her views on the provocative issues of abortion rights, premarital sex, and marijuana use. After the interview aired,

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public opinion of Betty plummeted, but her popularity quickly rebounded, and within months her approval rating had climbed to 75%.

At the same time, Betty was busy with the duties of First Lady, entertain- ing dignitaries and heads of state from countries across the globe. In 1975 she began actively campaigning for her husband for the 1976 pres- idential election, inspiring buttons that read “Vote for Betty’s Husband.” Ford lost the election to Jimmy Carter and, because he was suffering from laryngitis, Betty stepped into the spotlight to read Jerry’s concession speech to the country, congratulating Carter on his victory. Betty’s time as First Lady ended in January 1977, and the Fords retired to Rancho Mirage, California, and Vail, Colorado.

A little more than a year later, at the age of 60, Betty began another personal battle: overcoming alcoholism and an addiction to prescription medicine. Betty had a 14-year dependence on painkillers for chronic neck spasms, arthritis, and a pinched nerve, but refused to admit she was addicted to alcohol. After checking into the Long Beach Naval Hospital’s Alcohol and Drug Rehabilitation Service, she found the strength to face her demons and, again, went public with her struggles.

“I have found that I am not only addicted to the medications I’ve been taking for my arthritis, but also to alcohol,” she wrote in a statement released to the public. “I expect this treatment and fellowship to be a solution for my problems and I embrace it not only for me but for all the others who are here to participate” (Ford, 1978, p. 285).

Betty Ford found recovering from addiction was particularly daunting at a time when most treatment centers were geared toward treating men. “The female alcoholic has more emotional problems, more health prob- lems, more parenting problems, makes more suicide attempts, than the alcoholic man,” Betty explained in her second autobiography, Betty, a Glad Awakening (Ford, 1987, p. 129).

For this reason, Betty helped to establish the nonprofit Betty Ford Center in 1982 in Rancho Mirage. The center splits its space equally between male and female patients, but the treatment is gender specific with pro- grams for the entire family system affected by addiction. The center’s success has attracted celebrities as well as everyday people including middle-class moms, executives, college students, and laborers. Betty’s activism in the field of recovery earned her the Presidential Medal of Freedom in 1991 and the Congressional Medal of Honor in 1999.

Speaking at an alumni reunion of Betty Ford Center patients, Betty said, “I’m really proud of this center. And I’m really grateful for my own recovery, because with my recovery, I was able to help some other peo- ple come forward and address their own addictions. And I don’t think

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there’s anything as wonderful in life as being able to help someone else” (Ford, 1987, p. 217).

Questions

1. How would you describe Betty Ford’s leadership? In what ways could her leadership be described as authentic?

2. How did critical life events play a role in the development of her leadership?

3. Is there a clear moral dimension to Betty Ford’s leadership? In what way is her leadership about serving the common good? Discuss.

4. As we discussed in the chapter, self-awareness and transparency are associated with authentic leadership. How does Betty Ford exhibit these qualities?

LEADERSHIP INSTRUMENT

Although still in its early phases of development, the Authentic Leadership Questionnaire (ALQ) was created by Walumbwa and associates (2008) to explore and validate the assumptions of authentic leadership. It is a 16-item instrument that measures four factors of authentic leadership: self-awareness, internalized moral perspective, balanced processing, and relational transpar- ency. Based on samples in China, Kenya, and the United States, Walumbwa and associates validated the dimensions of the instrument and found it positively related to outcomes such as organizational citizenship, organiza- tional commitment, and satisfaction with supervisor and performance. To obtain this instrument, contact Mind Garden, Inc., in Menlo Park, California, or visit www.mindgarden.com. In this section, we provide an authentic leadership self-assessment to help you determine your own level of authentic leadership. This questionnaire will help you understand how authentic leadership is measured and provide you with your own scores on items that characterize authentic leadership. The ques- tionnaire includes 16 questions that assess the four major components of authentic leadership discussed earlier in this chapter: self-awareness, internal- ized moral perspective, balanced processing, and relational transparency. Your results on this self-assessment questionnaire will give you information about your level of authentic leadership on these underlying dimensions of authen- tic leadership. This questionnaire is intended for practical applications to help you understand the complexities of authentic leadership. It is not designed for research purposes.

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Authentic Leadership Self-Assessment Questionnaire Instructions: This questionnaire contains items about different dimensions of authentic leadership. There are no right or wrong responses, so please answer honestly. Use the following scale when responding to each statement by writ- ing the number from the scale below that you feel most accurately character- izes your response to the statement.

Key: 1 = Strongly 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly disagree agree

1. I can list my three greatest weaknesses. 1 2 3 4 5

2. My actions reflect my core values. 1 2 3 4 5

3. I seek others’ opinions before making up my own mind. 1 2 3 4 5

4. I openly share my feelings with others. 1 2 3 4 5

5. I can list my three greatest strengths. 1 2 3 4 5

6. I do not allow group pressure to control me. 1 2 3 4 5

7. I listen closely to the ideas of those who disagree with me. 1 2 3 4 5

8. I let others know who I truly am as a person. 1 2 3 4 5

9. I seek feedback as a way of understanding who I really am 1 2 3 4 5 as a person.

10. Other people know where I stand on controversial issues. 1 2 3 4 5

11. I do not emphasize my own point of view at the expense 1 2 3 4 5 of others.

12. I rarely present a “false” front to others. 1 2 3 4 5

13. I accept the feelings I have about myself. 1 2 3 4 5

14. My morals guide what I do as a leader. 1 2 3 4 5

15. I listen very carefully to the ideas of others before 1 2 3 4 5 making decisions.

16. I admit my mistakes to others. 1 2 3 4 5

Scoring

1. Sum the responses on items 1, 5, 9, and 13 (self-awareness).

2. Sum the responses on items 2, 6, 10, and 14 (internalized moral perspective).

3. Sum the responses on items 3, 7, 11, and 15 (balanced processing).

4. Sum the responses on items 4, 8, 12, and 16 (relational transparency).

Chapter 9 Authentic Leadership 219

Total Scores

Self-Awareness: ______

Internalized Moral Perspective: _____

Balanced Processing: _____

Relational Transparency: _____

Scoring Interpretation

This self-assessment questionnaire is designed to measure your authentic lead- ership by assessing four components of the process: self-awareness, internal- ized moral perspective, balanced processing, and relational transparency. By comparing your scores on each of these components, you can determine which are your stronger and which are your weaker components in each cat- egory. You can interpret your authentic leadership scores using the following guideline: high = 16–20 and low = 15 and below. Scores in the upper range indicate stronger authentic leadership, whereas scores in the lower range indicate weaker authentic leadership.

220 LEADERSHIP THEORY AND PRACTICE

SUMMARY

As a result of leadership failures in the public and private sectors, authentic leadership is emerging in response to societal demands for genuine, trust- worthy, and good leadership. Authentic leadership describes leadership that is transparent, morally grounded, and responsive to people’s needs and val- ues. Even though authentic leadership is still in the early stages of develop- ment, the study of authentic leadership is timely and worthwhile, offering hope to people who long for true leadership. Although there is no single accepted definition of authentic leadership, it can be conceptualized intrapersonally, developmentally, and interpersonally. The intrapersonal perspective focuses on the leader and the leader’s knowl- edge, self-regulation, and self-concept. The interpersonal perspective claims that authentic leadership is a collective process, created by leaders and fol- lowers together. The developmental perspective emphasizes major compo- nents of authentic leadership that develop over a lifetime and are triggered by major life events. The practical approach to authentic leadership provides basic “how to” steps to become an authentic leader. George’s approach (2003) identifies five basic dimensions of authentic leadership and the corresponding behavioral characteristics individuals need to develop to become authentic leaders. In the social science literature, a theoretical approach to authentic leadership is emerging. Drawing from the fields of leadership, positive organizational scholarship, and ethics, researchers have identified four major components of authentic leadership: self-awareness, internalized moral perspective, bal- anced processing, and relational transparency. In addition, researchers have found that authentic leadership is influenced by a leader’s positive psychological capacities, moral reasoning, and critical life events. Authentic leadership has several positive features. First, it provides an answer to people who are searching for good and sound leadership in an uncertain world. Second, authentic leadership is prescriptive and provides a great deal of information about how leaders can learn to become authen- tic. Third, it has an explicit moral dimension that asserts that leaders need to do what is “right” and “good” for their followers and society. Fourth, it is framed as a process that is developed by leaders over time rather than as a fixed trait. Last, authentic leadership can be measured with a theory- based instrument.

Chapter 9 Authentic Leadership 221

There are also negative features to authentic leadership. First, the ideas set forth in the practical approach need to be treated cautiously because they have not been fully substantiated by research. Second, the moral component of authentic leadership is not fully explained. For example, it does not describe how values such as justice and community are related to authentic leadership. Third, the rationale for including positive psychological capacities as an inherent part of a model of authentic leadership has not been fully explicated. Finally, there is a lack of evidence regarding the effectiveness of authentic leadership and how it is related to positive organizational outcomes. In summary, authentic leadership is a new and exciting area of research, which holds a great deal of promise. As more research is conducted on authentic leadership, a clearer picture will emerge about the true nature of the process and the assumptions and principles that it encompasses.

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Servant Leadership

DESCRIPTION

Servant leadership is a paradox—an approach to leadership that runs counter to common sense. Our everyday images of leadership do not coincide with leaders being servants. Leaders influence, and servants follow. How can leadership be both service and influence? How can a person be a leader and a servant at the same time? Although servant leadership seems contradic- tory and challenges our traditional beliefs about leadership, it is an approach that offers a unique perspective. Servant leadership, which originated in the writings of Greenleaf (1970, 1972, 1977), has been of interest to leadership scholars for more than 40 years. Until recently, little empirical research on servant leadership has appeared in established peer-reviewed journals. Most of the academic and nonacademic writing on the topic has been prescriptive, focusing on how servant leadership should ideally be, rather than descriptive, focusing on what servant leadership actually is in practice (van Dierendonck, 2011). However, in the past 10 years, multiple publications have helped to clarify servant leadership and substantiate its basic assumptions. Similar to earlier leadership theories discussed in this book (e.g., skills approach and behavioral approach), servant leadership is an approach focus- ing on leadership from the point of view of the leader and his or her behav- iors. Servant leadership emphasizes that leaders be attentive to the concerns of their followers, empathize with them, and nurture them. Servant leaders put followers f irst, empower them, and help them develop their full personal capacities. Furthermore, servant leaders are ethical (see Chapter 13, “Leadership Ethics,” for an extended discussion of this topic) and lead in

Servant Leadership Everyday Servant Leadership

226 LEADERSHIP THEORY AND PRACTICE

ways that serve the greater good of the organization, community, and society at large.

Servant Leadership Defined

What is servant leadership? Scholars have addressed this approach from many different perspectives resulting in a variety of definitions of servant leadership. Greenleaf (1970) provides the most frequently referenced definition:

[Servant leadership] begins with the natural feeling that one wants to serve, to serve f irst. Then conscious choice brings one to aspire to lead. . . . The difference manifests itself in the care taken by the servant—first to make sure that other people’s highest priority needs are being served. The best test . . . is: do those served grow as persons; do they, while being served, become healthier, wiser, freer, more auton- omous, more likely themselves to become servants? And, what is the effect on the least privileged in society; will they benefit, or, at least, will they not be further deprived? (p. 15)

Although complex, this definition sets forth the basic ideas of servant lead- ership that have been highlighted by current scholars. Servant leaders place the good of followers over their own self-interests and emphasize follower development (Hale & Fields, 2007). They demonstrate strong moral behav- ior toward followers (Graham, 1991; Walumbwa, Hartnell, & Oke, 2010), the organization, and other stakeholders (Ehrhart, 2004). Practicing servant leadership comes more naturally for some than others, but everyone can learn to be a servant leader (Spears, 2010). Although servant leadership is sometimes treated by others as a trait, in our discussion, servant leadership is viewed as a behavior.

Historical Basis of Servant Leadership

Robert K. Greenleaf coined the term servant leadership and is the author of the seminal works on the subject. Greenleaf ’s persona and writings have significantly influenced how servant leadership has developed on the practi- cal and theoretical level. He founded the Center for Applied Ethics in 1964, now the Greenleaf Center for Servant Leadership, which provides a clearing- house and focal point for research and writing on servant leadership. Greenleaf worked for 40 years at AT&T and, after retiring, began exploring how institutions function and how they could better serve society. He was

Being a Servant Leader Serving on Southwest

Chapter 10 Servant Leadership 227

intrigued by issues of power and authority and how individuals in organiza- tions could creatively support each other. Decidedly against coercive leader- ship, Greenleaf advocated using communication to build consensus in groups. Greenleaf credits his formulation of servant leadership to Hermann Hesse’s (1956) novel The Journey to the East. It tells the story of a group of travelers on a mythical journey who are accompanied by a servant who does menial chores for the travelers but also sustains them with his spirits and song. The servant’s presence has an extraordinary impact on the group. When the ser- vant becomes lost and disappears from the group, the travelers fall into disar- ray and abandon the journey. Without the servant, they are unable to carry on. It was the servant who was ultimately leading the group, emerging as a leader through his selfless care of the travelers. In addition to serving, Greenleaf states that a servant leader has a social responsibility to be concerned about the “have-nots” and those less privi- leged. If inequalities and social injustices exist, a servant leader tries to remove them (Graham, 1991). In becoming a servant leader, a leader uses less institutional power and control while shifting authority to those who are being led. Servant leadership values community because it provides a face- to-face opportunity for individuals to experience interdependence, respect, trust, and individual growth (Greenleaf, 1970).

Ten Characteristics of a Servant Leader

In an attempt to clarify servant leadership for practitioners, Spears (2002) identified 10 characteristics in Greenleaf ’s writings that are central to the development of servant leadership. Together, these characteristics comprise the first model or conceptualization of servant leadership.

1. Listening. Communication between leaders and followers is an interactive process that includes sending and receiving messages (i.e., talk- ing and listening). Servant leaders communicate by listening first. They recognize that listening is a learned discipline that involves hearing and being receptive to what others have to say. Through listening, servant lead- ers acknowledge the viewpoint of followers and validate these perspectives.

2. Empathy. Empathy is “standing in the shoes” of another person and attempting to see the world from that person’s point of view. Empathetic servant leaders demonstrate that they truly understand what followers are thinking and feeling. When a servant leader shows empathy, it is confirming and validating for the follower. It makes the follower feel unique.

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228 LEADERSHIP THEORY AND PRACTICE

3. Healing. To heal means to make whole. Servant leaders care about the personal well-being of their followers. They support followers by help- ing them overcome personal problems. Greenleaf argues that the process of healing is a two-way street—in helping followers become whole, servant leaders themselves are healed.

4. Awareness. For Greenleaf, awareness is a quality within servant leaders that makes them acutely attuned and receptive to their physical, social, and political environments. It includes understanding oneself and the impact one has on others. With awareness, servant leaders are able to step aside and view themselves and their own perspectives in the greater context of the situation.

5. Persuasion. Persuasion is clear and persistent communication that convinces others to change. As opposed to coercion, which utilizes posi- tional authority to force compliance, persuasion creates change through the use of gentle nonjudgmental argument. According to Spears (2002), Greenleaf ’s emphasis on persuasion over coercion is perhaps related to his denominational affiliation with the Religious Society of Friends (Quakers).

6. Conceptualization. Conceptualization refers to an individual’s abil- ity to be a visionary for an organization, providing a clear sense of its goals and direction. This characteristic goes beyond day-to-day operational thinking to focus on the “big picture.” Conceptualization also equips ser- vant leaders to respond to complex organizational problems in creative ways, enabling them to deal with the intricacies of the organization in relationship to its long-term goals.

7. Foresight. Foresight encompasses a servant leader’s ability to know the future. It is an ability to predict what is coming based on what is occur- ring in the present and what has happened in the past. For Greenleaf, foresight has an ethical dimension because he believes leaders should be held accountable for any failures to anticipate what reasonably could be foreseen and to act on that understanding.

8. Stewardship. Stewardship is about taking responsibility for the lead- ership role entrusted to the leader. Servant leaders accept the responsibility to carefully manage the people and organization they have been given to lead. In addition, they hold the organization in trust for the greater good of society.

9. Commitment to the growth of people. Greenleaf ’s conceptualization of servant leadership places a premium on treating each follower as a unique person with intrinsic value that goes beyond his or her tangible contribu- tions to the organization. Servant leaders are committed to helping each person in the organization grow personally and professionally. Commitment

Stewardship

Chapter 10 Servant Leadership 229

can take many forms, including providing followers with opportunities for career development, helping them develop new work skills, taking a per- sonal interest in the their ideas, and involving them in decision making (Spears, 2002).

10. Building community. Servant leadership fosters the development of community. A community is a collection of individuals who have shared interests and pursuits and feel a sense of unity and relatedness. Community allows followers to identify with something greater than themselves that they value. Servant leaders build community to provide a place where people can feel safe and connected with others, but are still allowed to express their own individuality.

These 10 characteristics of servant leadership represent Greenleaf ’s seminal work on the servant as leader. They provide a creative lens from which to view the complexities of servant leadership.

Building a Theory About Servant Leadership

For more than three decades after Greenleaf ’s original writings, servant leader- ship remained a set of loosely defined characteristics and normative principles. In this form it was widely accepted as a leadership approach, rather than a theory, that has strong heuristic and practical value. Praise for servant leadership came from a wide range of well-known leadership writers, including Bennis (2002), Blanchard and Hodges (2003), Covey (2002), DePree (2002), Senge (2002), and Wheatley (2002). At the same time, servant leadership was adopted as a guiding philosophy in many well-known organizations such as The Toro Company, Herman Miller, Synovus Financial Corporation, ServiceMaster, Men’s Wearhouse, Southwest Airlines, and TDIndustries (Spears, 2002). Although novel and paradoxical, the basic ideas and prescriptions of servant leadership resonated with many as an ideal way to run an organization. More recently, researchers have begun to examine the conceptual under- pinnings of servant leadership in an effort to build a theory about it. These studies have resulted in a wide array of models that describe servant leader- ship using a multitude of variables. For example, Russell and Stone (2002) developed a practical model of servant leadership that contained 20 attri- butes, nine functional characteristics (distinctive behaviors observed in the workplace), and 11 accompanying characteristics that augment these behav- iors. Similarly, Patterson (2003) created a value-based model of servant leadership that distinguished seven constructs that characterize the virtues and shape the behaviors of servant leaders.

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Other conceptualizations of servant leadership have emerged from researchers’ efforts to develop and validate instruments to measure the core dimensions of the servant leadership process. Table 10.1 provides a summary of some of these studies, illustrating clearly the extensiveness of characteristics related to ser- vant leadership. This table also exhibits the lack of agreement among research- ers on what specific characteristics define servant leadership. While some of the studies include common characteristics, such as humility or empowerment, none of the studies conceptualize servant leadership in exactly the same way. In addition, Table 10.1 demonstrates how servant leadership is treated as a trait phenomenon (e.g., courage, humility) in some studies while other researchers regard it as a behavioral process (e.g., serving and developing oth- ers). Although scholars are not in agreement regarding the primary attributes of servant leadership, these studies provide the groundwork necessary for the development of a refined model of servant leadership.

MODEL OF SERVANT LEADERSHIP

This chapter presents a servant leadership model based on Liden, Wayne, Zhao, and Henderson (2008) and Liden, Panaccio, Hu, and Meuser (2014) that has three main components: antecedent conditions, servant leader behaviors, and leadership outcomes (Figure 10.1). The model is intended to clarify the phenomenon of servant leadership and provide a framework for understanding its complexities.

Antecedent Conditions

As shown on the left side of Figure 10.1, three antecedent, or existing, con- ditions have an impact on servant leadership: context and culture, leader attri- butes, and follower receptivity. These conditions are not inclusive of all the conditions that affect servant leadership, but do represent some factors likely to influence the leadership process.

Context and Culture. Servant leadership does not occur in a vacuum but occurs within a given organizational context and a particular culture. The nature of each of these affects the way servant leadership is carried out. For example, in health care and nonprofit settings, the norm of caring is more prevalent, while for Wall Street corporations it is more common to have competition as an operative norm. Because the norms differ, the ways ser- vant leadership is performed may vary. Dimensions of culture (see Chapter 16, “Culture and Leadership”) will also influence servant leadership. For example, in cultures where power distance

232 LEADERSHIP THEORY AND PRACTICE

is low (e.g., Nordic Europe) and power is shared equally among people at all levels of society, servant leadership may be more common. In cultures with low humane orientation (e.g., Germanic Europe), servant leadership may present more of a challenge. The point is that cultures influence the way servant leadership is able to be achieved.

Leader Attributes. As in any leadership situation, the qualities and dispo- sition of the leader influence the servant leadership process. Individuals bring their own traits and ideas about leading to leadership situations. Some may feel a deep desire to serve or are strongly motivated to lead. Others may be driven by a sense of higher calling (Sendjaya, Sarros, & Santora, 2008). These dispositions shape how individuals demonstrate servant leadership. In addition, people differ in areas such as moral development, emotional intelligence, and self-determinedness, and these traits interact with their ability to engage in servant leadership.

Follower Receptivity. The receptivity of followers is a factor that appears to influence the impact of servant leadership on outcomes such as personal and organizational job performance. Follower receptivity concerns the

Context and Culture

Leader Attributes

Follower Receptivity

Outcomes

Follower Performance and Growth

Organizational Performance

Societal Impact

Servant Leader Behaviors

Conceptualizing Emotional Healing Putting Followers First Helping Followers

Grow and Succeed Behaving Ethically Empowering Creating Value for

the Community

Antecedent Conditions

Figure 10.1 Model of Servant Leadership

SOURCE: Adapted from Liden, R. C., Panaccio, A., Hu, J., & Meuser, J. D. (2014). Servant leadership: Antecedents, consequences, and contextual moderators. In D. V. Day (Ed.), The Oxford handbook of leadership and organizations. Oxford, England: Oxford University Press; and van Dierendonck, D. (2011). Servant leadership: A review and syntheses. Journal of Management, 37(4), 1228–1261.

The Ripple Effect Antecedents of Servant Leadership

Chapter 10 Servant Leadership 233

question “Do all followers show a desire for servant leadership?” Research suggests the answer may be no. Some followers do not want to work with servant leaders. They equate servant leadership with micromanagement, and report that they do not want their leader to get to know them or try to help, develop, or guide them (Liden, Wayne, et al., 2008). Similarly, Meuser, Liden, Wayne, and Henderson (2011) found empirical evidence showing that when servant leadership was matched with followers who desired it, this type of leadership had a positive impact on performance and organiza- tional citizenship behavior. The opposite was seen when there was no match between servant leadership and the desire of followers for it. It appears that, for some followers, servant leadership has a positive impact and, for others, servant leadership is not effective.

Servant Leader Behaviors

The middle component of Figure 10.1 identifies seven servant leader behaviors that are the core of the servant leadership process. These behav- iors emerged from Liden, Wayne, et al.’s (2008) vigorous efforts to develop and validate a measure of servant leadership. The findings from their research provide evidence for the soundness of viewing servant leadership as a multidimensional process. Collectively, these behaviors are the central focus of servant leadership. Individually, each behavior makes a unique contribution.

Conceptualizing. Conceptualizing refers to the servant leader’s thorough understanding of the organization—its purposes, complexities, and mission. This capacity allows servant leaders to think through multifaceted prob- lems, to know if something is going wrong, and to address problems cre- atively in accordance with the overall goals of the organization. For example, Kate Simpson, a senior nursing supervisor in an emergency room of a large hospital, uses conceptualizing to lead her department. She fully understands the mission of the hospital and, at the same time, knows how to effectively manage staff on a day-to-day basis. Her staff members say Kate has a sixth sense about what is best for people. She is known for her wisdom in dealing with difficult patients and helping staff diagnose complex medical problems. Her abilities, competency, and value as a servant leader earned her the hospital’s Caregiver of the Year Award.

Emotional Healing. Emotional healing involves being sensitive to the personal concerns and well-being of others. It includes recognizing others’

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problems and being willing to take the time to address them. Servant leaders who exhibit emotional healing make themselves available to oth- ers, stand by them, and provide them with support. Emotional healing is apparent in the work of Father John, a much sought- after hospice priest on Chicago’s South Side. Father John has a unique approach to hospice patients: He doesn’t encourage, give advice, or read Scripture. Instead he simply listens to them. “When you face death, the only important thing in life is relationships,” he says. “I practice the art of stand- ing by. I think it is more important to come just to be there than to do anything else.”

Putting Followers First. Putting others first is the sine qua non of servant leadership—the defining characteristic. It means using actions and words that clearly demonstrate to followers that their concerns are a priority, including placing followers’ interests and success ahead of those of the leader. It may mean a leader breaks from his or her own tasks to assist fol- lowers with theirs. Dr. Autumn Klein, a widely published health education professor at a major research university, is responsible for several ongoing large interdisciplinary public health studies. Although she is the principal investigator on these studies, when multiauthored articles are submitted for publication, Dr. Klein puts the names of other researchers before her own. She chooses to let oth- ers be recognized because she knows it will benefit them in their annual performance reviews. She puts the success of her colleagues ahead of her own interests.

Helping Followers Grow and Succeed. This behavior refers to know- ing followers’ professional or personal goals and helping them to accom- plish those aspirations. Servant leaders make followers’ career development a priority, including mentoring followers and providing them with sup- port. At its core, helping followers grow and succeed is about aiding these individuals to become self-actualized, reaching their fullest human potential. An example of how a leader helps others grow and succeed is Mr. Yon Kim, a high school orchestra teacher who consistently receives praise from parents for his outstanding work with students. Mr. Kim is a skilled violinist with high musical standards, but he does not let that get in the way of helping each student, from the most highly accomplished to the least capable. Students like Mr. Kim because he listens to them and treats them as adults.

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He gives feedback without being judgmental. Many of his former students have gone on to become music majors. They often visit Mr. Kim to let him know how important he was to them. Yon Kim is a servant leader who helps students grow through his teaching and guidance.

Behaving Ethically. Behaving ethically is doing the right thing in the right way. It is holding to strong ethical standards, including being open, honest, and fair with followers. Servant leaders do not compromise their ethical principles in order to achieve success.

An example of ethical behavior is how CEO Elizabeth Angliss responded when one of her employees brought her a copy of a leaked document from their company’s chief competitor, outlining its plans to go after some of Angliss’s largest customers. Although she knew the document undoubtedly had valuable information, she shredded it instead of reading it. She then called the rival CEO and told him she had received the document and wanted him to be aware that he might have a security issue within his com- pany. “I didn’t know if what I received was real or not,” she explains. “But it didn’t matter. If it was the real thing, someone on his end did something wrong, and my company wasn’t going to capitalize on that.”

Empowering. Empowering refers to allowing followers the freedom to be independent, make decisions on their own, and be self-sufficient. It is a way for leaders to share power with followers by allowing them to have control. Empowerment builds followers’ confidence in their own capacities to think and act on their own because they are given the freedom to handle difficult situations in the way they feel is best.

For example, a college professor teaching a large lecture class empowers two teaching assistants assigned to him by letting them set their own office hours, independently grade student papers, and practice teaching by giving one of the weekly class lectures. They become confident in their teaching abilities and bring new ideas to the professor to try in the classroom.

Creating Value for the Community. Servant leaders create value for the community by consciously and intentionally giving back to the community. They are involved in local activities and encourage followers to also volun- teer for community service. Creating value for the community is one way for leaders to link the purposes and goals of an organization with the broader purposes of the community.

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An example of creating value for the community can be seen in the leader- ship of Mercedes Urbanez, principal of Alger High School. Alger is an alter- native high school in a midsize community with three other high schools. Mercedes’s care and concern for students at Alger is remarkable. Ten percent of Alger’s students have children, so the school provides on-site day care. Fifteen percent of the students are on probation, and Alger is often their last stop before dropping out entirely and resuming criminal activities. While the other schools in town foster competition and push advanced placement courses, Alger focuses on removing the barriers that keep its students from excelling and offers courses that provide what its students need including multimedia skills, reading remediation, and parenting. Under Mercedes, Alger High School is a model alternative school appreci- ated at every level in the community. Students, who have failed in other schools, find they have a safe place to go where they are accepted and adults try to help them solve their problems. Law enforcement supports the school’s efforts to help these students get back into the mainstream of soci- ety and away from crime. The other high schools in the community know that Alger provides services they find difficult to provide. Mercedes Urbanez serves the have-nots in the community, and the whole community reaps the benefits.

Outcomes

Although servant leadership focuses primarily on leader behaviors, it is also important to examine the potential outcomes of servant leadership. The outcomes of servant leadership are follower performance and growth, organi- zational performance, and societal impact (see Figure 10.1). As Greenleaf highlighted in his original work (1970), the central goal of servant leader- ship is to create healthy organizations that nurture individual growth, strengthen organizational performance, and, in the end, produce a positive impact on society.

Follower Performance and Growth. In the model of servant leadership, most of the servant leader behaviors focus directly on recognizing followers’ contributions and helping them realize their human potential. The expected outcome for followers is greater self-actualization. That is, followers will realize their full capabilities when leaders nurture them, help them with their personal goals, and give them control. Another outcome of servant leadership, suggested by Meuser et al. (2011), is that it will have a favorable impact on follower in-role performance—the

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way followers do their assigned work. When servant leaders were matched with followers who were open to this type of leadership, the results were positive. Followers became more effective at accomplishing their jobs and fulfilling their job descriptions.

Finally, another expected result of servant leadership is that followers them- selves may become servant leaders. Greenleaf ’s conceptualization of servant leadership hypothesizes that when followers receive caring and empower- ment from ethical leaders they, in turn, will likely begin treating others in this way. Servant leadership would produce a ripple effect in which servant leaders create more servant leaders. Further research is needed, however, to test this hypothesis.

Organizational Performance. In addition to positively affecting fol- lowers and their performance, initial research has shown that servant leadership has an influence on organizational performance. Several studies have found a positive relationship between servant leadership and organizational citizenship behaviors (OCBs), which are follower behaviors that go beyond the basic requirements of their duties and help the overall functioning of the organization (Ehrhart, 2004; Liden, Wayne, et al., 2008; Neubert, Kacmar, Carlson, Chonko, & Roberts, 2008; Walumbwa et al., 2010).

Servant leadership also affects the way organizational teams function. Hu and Liden (2011) found that servant leadership enhanced team effectiveness by increasing the members’ shared confidence that they could be effective as a work group. Furthermore, their results showed that servant leadership contributed positively to team potency by enhancing group process and clarity. However, when servant leadership was absent, team potency decreased, despite clearer goals. In essence, it frustrates people to know exactly what the goal is, but not get the support needed to accomplish the goal.

Current research on organizational outcomes is in its initial stages. Further study is needed to substantiate the direct and indirect ways that servant leadership is related to organizational performance.

Societal Impact. Another outcome expected of servant leadership is that it is likely to have a positive impact on society. Although societal impact is not commonly measured in studies of servant leadership, there are examples of servant leadership’s impact that are highly visible. One example we are all familiar with is the work of Mother Teresa whose years of service for the

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hungry, homeless, and unwanted resulted in the creation of a new religious order, the Missionaries of Charity. This order now has more than 1 million workers in over 40 countries that operate hospitals, schools, and hospices for the poor. Mother Teresa’s servant leadership has had an extraordinary impact on society throughout the world. In the business world, an example of the societal impact of servant leadership can be observed at Southwest Airlines (see Case 10.3). Leaders at Southwest instituted an “others first” organizational philosophy in the management of the company, which starts with how it treats its employees. This philosophy is adhered to by those employees who themselves become servant leaders in regards to the airline’s customers. Because the company thrives, it impacts society by providing jobs in the communities it serves and, to a lesser extent, by providing the customers who rely on it with transportation. In his conceptualization of servant leadership, Greenleaf did not frame the process as one that was intended to directly change society. Rather, he visu- alizes leaders who become servants first and listen to others and help them grow. As a result, their organizations are healthier, ultimately benefiting soci- ety. In this way, the long-term outcomes of putting others first include pos- itive social change and helping society flourish.

Summary of the Model of Servant Leadership

In summary, the model of servant leadership consists of three components: antecedent conditions, servant leader behaviors, and outcomes. The central focus of the model is the seven behaviors of leaders that foster servant lead- ership: conceptualizing, emotional healing, putting followers first, helping followers grow and succeed, behaving ethically, empowering, and creating value for the community. These behaviors are influenced by context and culture, the leader’s attributes, and the followers’ receptivity to this kind of leadership. When individuals engage in servant leadership, it is likely to improve outcomes at the individual, organizational, and societal levels.

HOW DOES SERVANT LEADERSHIP WORK?

The servant leadership approach works differently than many of the prior theories we have discussed in this book. For example, it is unlike the trait approach (Chapter 2), which emphasizes that leaders should have certain specific traits. It is also unlike path–goal theory (Chapter 6), which lays out principles regarding what style of leadership is needed in various situations.

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Instead, servant leadership focuses on the behaviors leaders should exhibit to put followers first and to support followers’ personal development. It is con- cerned with how leaders treat followers and the outcomes that are likely to emerge. So what is the mechanism that explains how servant leadership works? It begins when leaders commit themselves to putting their followers first, being honest with them, and treating them fairly. Servant leaders make it a priority to listen to their followers and develop strong long-term relation- ships with them. This allows leaders to understand the abilities, needs, and goals of followers, which, in turn, allows these followers to achieve their full potential. When many leaders in an organization adopt a servant leadership orientation, a culture of serving others within and outside the organization is created (Liden, Wayne, et al., 2008). Servant leadership works best when leaders are altruistic and have a strong moti- vation and deep-seated interest in helping others. In addition, for successful servant leadership to occur, it is important that followers are open and receptive to servant leaders who want to empower them and help them grow. It should be noted that in much of the writing on servant leadership there is an underlying philosophical position, originally set forth by Greenleaf (1970), that leaders should be altruistic and humanistic. Rather than using their power to dominate others, leaders should make every attempt to share their power and enable others to grow and become autonomous. Leadership framed from this perspective downplays competition in the organization and promotes egalitarianism. Finally, in an ideal world, servant leadership results in community and soci- etal change. Individuals within an organization who care for each other become committed to developing an organization that cares for the com- munity. Organizations that adopt a servant leadership culture are committed to helping those in need who operate outside of the organization. Servant leadership extends to serving the “have-nots” in society (Graham, 1991). Case 10.2 in this chapter provides a striking example of how one servant leader’s work led to positive outcomes for many throughout the world.

STRENGTHS

In its current stage of development, research on servant leadership has made several positive contributions to the field of leadership. First, while there are other leadership approaches such as transformational and

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authentic leadership that include an ethical dimension, servant leadership is unique in the way it makes altruism the central component of the lead- ership process. Servant leadership argues unabashedly that leaders should put followers first, share control with followers, and embrace their growth. It is the only leadership approach that frames the leadership process around the principle of caring for others. Second, servant leadership provides a counterintuitive and provocative approach to the use of influence, or power, in leadership. Nearly all other theories of leadership treat influence as a positive factor in the leadership process, but servant leadership does just the opposite. It argues that leaders should not dominate, direct, or control; but rather, leaders should share con- trol and influence. To give up control rather than seek control is the goal of servant leadership. Servant leadership is an influence process that does not incorporate influence in a traditional way. Third, rather than imply that servant leadership is a panacea, research on servant leadership has shown there are conditions under which servant lead- ership is not a preferred kind of leadership. Findings indicate that servant leadership may not be effective in contexts where followers are not open to being guided, supported, and empowered. Followers’ readiness to receive ser- vant leadership moderates the potential usefulness of leading from this approach (Liden, Wayne, et al., 2008). Fourth, recent research has resulted in a sound measure of servant leadership. Using a rigorous methodology, Liden, Wayne, et al. (2008) developed and validated the Servant Leadership Questionnaire (SLQ), which appears at the end of the chapter. It comprises 28 items that identify seven distinct dimensions of servant leadership. Studies show that the SLQ is unique and measures aspects of leadership that are different from those measured by the transformational and leader–member exchange theories (Liden, Wayne, et al., 2008; Schaubroeck, Lam, & Peng, 2011). The SLQ has proved to be a suitable instrument for use in future research on servant leadership.

CRITICISMS

In addition to the positive features of servant leadership, this approach has several limitations. First, the paradoxical nature of the title “servant leadership” creates semantic noise that diminishes the potential value of the approach. Because the name appears contradictory, servant leadership is prone to be perceived as fanciful or whimsical. In addition, being a servant leader

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implies following, and following is viewed as the opposite of leading. Although servant leadership incorporates influence, the mechanism of how influence functions as a part of servant leadership is not fully explicated in the approach. Second, there is debate among servant leadership scholars regarding the core dimensions of the process. As illustrated in Table 10.1, servant leadership is hypothesized to include a multitude of abilities, traits, and behaviors. To date, researchers have been unable to reach consensus on a common defini- tion or theoretical framework for servant leadership (van Dierendonck, 2011). Until a larger body of findings is published on servant leadership, the robustness of theoretical formulations about it will remain limited. Third, a large segment of the writing on servant leadership has a prescriptive overtone that implies that good leaders “put others first.” While advocating an altruistic approach to leadership is commendable, it has a utopian ring because it conflicts with individual autonomy and other principles of leader- ship such as directing, concern for production, goal setting, and creating a vision (Gergen, 2006). Furthermore, along with the “value-push” prescriptive quality, there is an almost moralistic nature that seems to surround servant leadership. As a result, many practitioners of servant leadership are not nec- essarily researchers who want to conduct studies to test the validity of ser- vant leadership theory. Finally, it is unclear why “conceptualizing” is included as one of the servant leadership behaviors in the model of servant leadership (see Figure 10.1). Is conceptualizing actually a behavior, or is it a cognitive ability? Furthermore, what is the rationale for identifying conceptualizing as a determinant of servant leadership? Being able to conceptualize is undoubtedly an important cognitive capacity in all kinds of leadership, but why is it a defining charac- teristic of servant leadership? A clearer explanation for its central role in servant leadership needs to be addressed in future research.

APPLICATION

Servant leadership can be applied at all levels of management and in all types of organizations. Within a philosophical framework of caring for oth- ers, servant leadership sets forth a list of behaviors that individuals can engage in if they want to be servant leaders. The prescribed behaviors of servant leadership are not esoteric; they are easily understood and generally applicable to a variety of leadership situations.

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Unlike leader–member exchange theory (Chapter 7) or authentic leadership (Chapter 9), which are not widely used in training and development, servant leadership has been used extensively in a variety of organizations for more than 30 years. Many organizations in the Fortune 500 (e.g., Starbucks, AT&T, Southwest Airlines, and Vanguard Group) employ ideas from ser- vant leadership. Training in servant leadership typically involves self- assessment exercises, educational sessions, and goal setting. The content of servant leadership is straightforward and accessible to followers at every level within the organization. Liden, Wayne, et al. (2008) suggest that organizations that want to build a culture of servant leadership should be careful to select people who are inter- ested in and capable of building long-term relationships with followers. Furthermore, because “behaving ethically” is positively related to job perfor- mance, organizations should focus on selecting people who have high integ- rity and strong ethics. In addition, organizations should develop training programs that spend time helping leaders develop their emotional intelli- gence, ethical decision making, and skills for empowering others. Behaviors such as these will help leaders nurture followers to their full potential. Servant leadership is taught at many colleges and universities around the world and is the focus of numerous independent coaches, trainers, and con- sultants. In the United States, Gonzaga University and Regent University are recognized as prominent leaders in this area because of the academic attention they have given to servant leadership. Overall, the most recognized and comprehensive center for training in servant leadership is the Greenleaf Center for Servant Leadership (www.greenleaf.org). In summary, servant leadership provides a philosophy and set of behaviors that individuals in the organizational setting can learn and develop. The following section features cases illustrating how servant leadership has been manifested in different ways.

CASE STUDIES

This section provides three case studies (Cases 10.1, 10.2, and 10.3) that illustrate different facets of servant leadership. The first case describes the servant leadership of a high school secretary. The second case is about Dr. Paul Farmer and his efforts to stop disease in Haiti and other parts of the world. The third case is about the leaders of Southwest Airlines who created a servant leadership culture that permeates the company. At the end

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of each case, several questions are provided to help you analyze the case from the perspective of servant leadership.

CASE 10.1

Everyone Loves Mrs. Noble Sharon Noble is in charge of the main office at Essex High School, a position she has held for nearly 30 years. She does not have a college degree, but that does not seem to hinder her work as “secretary” for the school. She is an extravert, and people say her jokes are corny, but she runs the office efficiently and well, getting along with teachers and students and dealing with the rules and procedures that govern day-to-day Essex school life.

When people describe Sharon, they say that she is wise and seems to know just about everything there is to know about the school. She understands the core curriculum, testing, dress code, skip policy, after- school programs, helicopter parents, and much more. If students want to have a bake sale, she tells them the best way to do it. If they want to take Advanced Placement courses, she tells them which ones to take. The list of what she knows is endless. For years parents have told one another, “If you want to know anything about the school, go to Mrs. Noble—she is Essex High School.”

There is nothing pretentious about Mrs. Noble. She drives an old car and wears simple clothes. Students say they’ve never seen her wear makeup. But nevertheless, she is still “with it” when it comes to student fads and eccentricities. When students had long hair and fringed vests in the 1970s, Sharon was cool with it. She never mocks students who are “way out” and seems to even enjoy these students. When students wear clothes to get attention because they feel ostracized, Sharon is accepting and even acknowledges the “uniqueness” of their act, unless it violates the dress code. In those cases, she talks nonjudgmentally with students about their clothing, guiding them to make different choices to stay out of trouble.

Even though it isn’t technically in her job description, Mrs. Noble excels at helping juniors prepare applications for college. She knows all the requirements and deadlines and the materials required by the different universities. She spends hours pushing, nudging, and convincing students to stay on task and get their applications submitted. She doesn’t care if students go to Ivy League schools, state schools, or community colleges; but she does care if they go on to school. Mrs. Noble regrets not having been able to attend college, so it is important to her that “her” students do everything they can to go.

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At times her job is challenging. For example, the principal made teaching assignments that the faculty did not like, and Sharon was the one they shared their concerns with. She was a great listener and helped them see the differing perspectives of the situation. One year, when a student was in a car accident and unable to come to school for several months, Sharon personally worked with each one of the student’s teachers to get her assignments, delivered them to the student’s home, and picked them up when they were complete. When the seniors held a dance marathon to raise money for cancer research, it was Sharon who pledged the most, even though she didn’t make very much as the school’s secretary. She wanted to make sure each senior participating had at least one pledge on his or her roster; in most cases it was Sharon’s.

In 2010, the class of 1989 had its 25-year reunion, and of all the memories shared, the most were about Sharon Noble. Essex High School had a won- derful principal, many good teachers, and great coaches, but when alumni were asked, who runs the school? The answer was always “Mrs. Noble.”

Questions

1. What servant leader behaviors would you say Mrs. Noble demon- strates?

2. Who are Mrs. Noble’s followers?

3. Based on the model of servant leadership (Figure 10.1), what out- comes has Mrs. Noble’s servant leadership attained?

4. Can you think of someone at a school or organization you were part of who acted like Mrs. Noble? Describe what this person did and how it affected you and the school or organization.

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CASE 10.2

Doctor to the Poor “Education wasn’t what he wanted to perform on the world . . . He was after transformation.”

—Kidder (2003, p. 44)

When Paul Farmer graduated from Duke University at 22, he was unsure whether he wanted to be an anthropologist or a doctor. So he

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went to Haiti. As a student, Paul had become obsessed with the island nation after meeting many Haitians at local migrant camps. Paul was used to the grittier side of life; he had grown up in a family of eight that lived in a converted school bus and later on a houseboat moored in a bayou. But what he observed at the migrant camps and learned from his discussions with Haitian immigrants made his childhood seem idyllic.

In Haiti, he volunteered for a small charity called Eye Care Haiti, which conducted outreach clinics in rural areas. He was drawn in by the deplorable conditions and lives of the Haitian people and deter- mined to use his time there to learn everything he could about illness and disease afflicting the poor. Before long, Paul realized that he had found his life’s purpose: He’d be a doctor to poor people, and he’d start in Haiti.

Paul entered Harvard University in 1984 and, for the first two years, traveled back and forth to Haiti where he conducted a health census in the village of Cange. During that time he conceived of a plan to fight disease in Haiti by developing a public health system that included vac- cination programs and clean water and sanitation. The heart of this program, however, would be a cadre of people from the villages who were trained to administer medicines, teach health classes, treat minor ailments, and recognize the symptoms of grave illnesses such as HIV, tuberculosis, and malaria.

His vision became reality in 1987, thanks to a wealthy donor who gave $1 million to help Paul create Partners In Health (PIH). At first it wasn’t much of an organization—no staff, a small advisory board, and three committed volunteers. But its work was impressive: PIH began building schools and clinics in and around Cange. Soon PIH established a training program for health outreach workers and organized a mobile unit to screen residents of area villages for preventable diseases.

In 1990, Paul finished his medical studies and became a fellow in infec- tious diseases at Brigham and Women’s Hospital in Boston. He was able to remain in Haiti for most of each year, returning to Boston to work at Brigham for a few months at a time, sleeping in the basement of PIH headquarters.

It wasn’t long before PIH’s successes started gaining attention outside of Haiti. Because of its success treating the disease in Haiti, the World Health Organization appointed Paul and PIH staffer Jim Yong Kim to spearhead pilot treatment programs for multiple-drug-resistant tuberculosis (MDR-TB). Paul’s attention was now diverted to the slums of Peru and Russia where cases of MDR-TB were on the rise. In Peru, Paul and PIH

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encountered barriers in treating MDR-TB that had nothing to do with the disease. They ran headlong into governmental resistance and had to battle to obtain expensive medications. Paul learned to gently navigate governmental obstacles, while the Bill & Melinda Gates Foundation stepped in with a $44.7 million grant to help fund the program.

In 2005, PIH turned its attention to another part of the world: Africa, the epicenter of the global AIDS pandemic. Beginning its efforts in Rwanda, where few people had been tested or were receiving treatment, PIH tested 30,000 people in 8 months and enrolled nearly 700 in drug ther- apy to treat the disease. Soon, the organization expanded its efforts to the African nations of Lesotho and Malawi (Partners In Health, 2011).

But Paul’s efforts weren’t just in far-flung reaches of the world. From his work with patients at Brigham, Paul observed the needs of the impover- ished in Boston. The Prevention and Access to Care and Treatment (PACT) project was created to offer drug therapy for HIV and diabetes for the poor residents of the Roxbury and Dorchester districts. PIH has since sent PACT project teams across the United States to provide support to other community health programs.

By 2009, Partners in Health had grown to 13,600 employees working in health centers and hospitals in 8 countries (Partners In Health, 2013), including the Dominican Republic, Peru, Mexico, Rwanda, Lesotho, Malawi, Navajo Nation (U.S.), and Russia. Each year the organization increases the number of facilities and personnel that provide health care to the residents of some of the most impoverished and diseased places in the world. Paul continues to travel around the world, monitoring programs and raising funds for PIH in addition to leading the Department of Global Health and Social Medicine at Harvard Medical School.

Questions

1. Would you characterize Paul Farmer as a servant leader? Explain your answer.

2. Putting others first is the essence of servant leadership. In what way does Paul Farmer put others first?

3. Another characteristic of a servant leader is getting followers to serve. Who are Paul’s followers, and how did they become servants to his vision?

4. What role do you think Paul’s childhood had in his development as a servant leader?

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CASE 10.3

Servant Leadership Takes Flight A young mother traveling with a toddler on a long cross-country flight approached the flight attendant looking rather frantic. Because of weather and an hour-and-a-half wait on the runway to take off, the plane would arrive at its destination several hours late. The plane had made an intermediate stop in Denver to pick up passengers but not long enough for travelers to disembark. The mother told the atten- dant that with the delays and the long flight, her child had already eaten all the food she brought and if she didn’t feed him soon he was bound to have a total meltdown. “Can I get off for five minutes just to run and get something for him to eat?” she pleaded.

“I have to recommend strongly that you stay on the plane,” the atten- dant said, sternly. But then, with a smile, she added, “But I can get off. The plane won’t leave without me. What can I get your son to eat?”

Turns out that flight attendant not only got the little boy a meal, but brought four other children on board meals as well. Anyone who has traveled in a plane with screaming children knows that this flight attendant not only took care of some hungry children and frantic par- ents, but also indirectly saw to the comfort of a planeload of other passengers.

This story doesn’t surprise anyone familiar with Southwest Airlines. The airline’s mission statement is posted every 3 feet at all Southwest locations: Follow the Golden Rule—treat people the way you want to be treated.

It’s a philosophy that the company takes to heart and begins with how it treats employees. Colleen Barrett, the former president of Southwest Airlines, says the company’s cofounder and her mentor, Herb Kelleher, was adamant that “a happy and motivated workforce will essentially extend that goodwill to Southwest’s customers” (Knowledge@ Wharton, 2008). If the airline took care of its employees, the employ- ees would take care of the customers, and the shareholders would win, too.

From the first days of Southwest Airlines, Herb resisted establishing tra- ditional hierarchies within the company. He focused on finding employ- ees with substance, willing to say what they thought and committed to doing things differently. Described as “an egalitarian spirit,” he employed a collaborative approach to management that involved his associates at every step.

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Colleen, who went from working as Herb’s legal secretary to being the president of the airline, is living proof of his philosophy. A poor girl from rural Vermont who got the opportunity of a lifetime to work for Herb when he was still just a lawyer, she rose from his aide to become vice president of administration, then executive vice president of cus- tomers, and then president and chief operating officer in 2001 (which she stepped down from in 2008). She had no formal training in avia- tion, but that didn’t matter. Herb “always treated me as a complete equal to him,” she says.

It was Colleen who instituted the Golden Rule as the company motto and developed a model that focuses on employee satisfaction and issues first, followed by the needs of the passengers. The company hired employees for their touchy-feely attitudes and trained them for skill. Southwest Airlines developed a culture that celebrated and encouraged humor. The example of being themselves on the job started at the top with Herb and Colleen.

This attitude has paid off. Southwest Airlines posted a profit for 35 consecutive years and continues to make money while other airlines’ profits are crashing. Colleen says the most important numbers on the balance sheet, however, are those that indicate how many millions of people have become frequent flyers of the airline, a number that grows every year.

Questions

1. What type of servant leader behaviors did Herb Kelleher exhibit in starting the airline? What about Colleen Barrett?

2. How do the leaders of Southwest Airlines serve others? What others are they serving?

3. Southwest Airlines emphasizes the Golden Rule. What role does the Golden Rule play in servant leadership? Is it always a part of servant leadership? Discuss.

4. Based on Figure 10.1, describe the outcomes of servant leadership at Southwest Airlines, and how follower receptivity may have influenced those outcomes.

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LEADERSHIP INSTRUMENT

Many questionnaires have been used to measure servant leadership (see Table 10.1). Because of its relevance to the content, the Servant Leadership Questionnaire (SLQ) by Liden, Wayne, et al. (2008) was chosen for inclusion in this chapter. It is a 28-item scale that measures seven major dimensions of servant leadership: conceptualizing, emotional healing, putting followers first, helping followers grow and succeed, behaving ethically, empowering, and creating value for the community. Using exploratory and confirmatory factor analysis, Liden, Wayne, et al. established the multiple dimensions of this scale and described how it is uniquely different from other leadership measures. By completing the SLQ you will gain an understanding of how servant leadership is measured and explore where you stand on the different dimensions of servant leadership. Servant leadership is a complex pro- cess, and taking the SLQ is one way to discover the dynamics of how it works.

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Servant Leadership Questionnaire Instructions: Select two people who know you in a leadership capacity such as a coworker, fellow group member, or follower. Make two copies of this ques- tionnaire and give a copy to each individual you have chosen. Using the fol- lowing 7-point scale, ask them to indicate the extent to which they agree or disagree with the following statements as they pertain to your leadership. In these statements, “He/She” is referring to you in a leadership capacity.

Key: 1 = Strongly disagree 2 = Disagree 3 = Disagree somewhat 4 = Undecided 5 = Agree Somewhat 6 = Agree 7 = Strongly agree

1. Others would seek help from him/her if they had a 1 2 3 4 5 6 7 personal problem.

2. He/She emphasizes the importance of giving back to 1 2 3 4 5 6 7 the community.

3. He/She can tell if something work related is going wrong. 1 2 3 4 5 6 7

4. He/She gives others the responsibility to make important 1 2 3 4 5 6 7 decisions about their own jobs.

5. He/She makes others’ career development a priority. 1 2 3 4 5 6 7

6. He/She cares more about others’ success than his/her own. 1 2 3 4 5 6 7

7. He/She holds high ethical standards. 1 2 3 4 5 6 7

8. He/She cares about others’ personal well-being. 1 2 3 4 5 6 7

9. He/She is always interested in helping people in the 1 2 3 4 5 6 7 community.

10. He/She is able to think through complex problems. 1 2 3 4 5 6 7

11. He/She encourages others to handle important work 1 2 3 4 5 6 7 decisions on their own.

12. He/She is interested in making sure others reach their 1 2 3 4 5 6 7 career goals.

13. He/She puts others’ best interests above his/her own. 1 2 3 4 5 6 7

14. He/She is always honest. 1 2 3 4 5 6 7

15. He/She takes time to talk to others on a personal level. 1 2 3 4 5 6 7

16. He/She is involved in community activities. 1 2 3 4 5 6 7

17. He/She has a thorough understanding of the organization 1 2 3 4 5 6 7 and its goals.

18. He/She gives others the freedom to handle difficult 1 2 3 4 5 6 7 situations in the way they feel is best.

Chapter 10 Servant Leadership 251

19. He/She provides others with work experiences that 1 2 3 4 5 6 7 enable them to develop new skills.

20. He/She sacrifices his/her own interests to meet 1 2 3 4 5 6 7 others’ needs.

21. He/She would not compromise ethical principles in 1 2 3 4 5 6 7 order to meet success.

22. He/She can recognize when others are feeling down 1 2 3 4 5 6 7 without asking them.

23. He/She encourages others to volunteer in the community. 1 2 3 4 5 6 7

24. He/She can solve work problems with new or 1 2 3 4 5 6 7 creative ideas.

25. If others need to make important decisions at work, they 1 2 3 4 5 6 7 do not need to consult him/her.

26. He/She wants to know about others’ career goals. 1 2 3 4 5 6 7

27. He/She does what he/she can to make others’ jobs easier. 1 2 3 4 5 6 7

28. He/She values honesty more than profits. 1 2 3 4 5 6 7

SOURCE: Reprinted (adapted version) from “Servant Leadership: Development of a Multidimensional Measure and Multi-Level Assessment,” by R. C. Liden, S. J. Wayne, H. Zhao, and D. Henderson, 2008, The Leadership Quarterly, 19, 161–177. Copyright © Reprinted with permission from Elsevier Science.

Scoring

Using the questionnaires on which others assessed your leadership, take the separate scores for each item, add them together, and divide that sum by two. This will give you the average score for that item. For example, if Person A assessed you at 4 for Item 2, and Person B marked you as a 6, your score for Item 2 would be 5.

Once you have averaged each item’s scores, use the following steps to com- plete the scoring of the questionnaire:

1. Add up the scores on 1, 8, 15, and 22. This is your score for emotional healing.

2. Add up the scores for 2, 9, 16, and 23. This is your score for creating value for the community.

3. Add up the scores for 3, 10, 17, and 24. This is your score for conceptual skills.

4. Add up the scores for 4, 11, 18, and 25. This is your score for empowering.

252 LEADERSHIP THEORY AND PRACTICE

5. Add up the scores for 5, 12, 19, and 26. This is your score for helping fol- lowers grow and succeed.

6. Add up the scores for 6, 13, 20, and 27. This is your score for putting followers first.

7. Add up the scores for 7, 14, 21, and 28. This is your score for behaving ethically.

Scoring Interpretation

High range: A score between 23 and 28 means you strongly exhibit this servant leadership behavior.

Moderate range: A score between 14 and 22 means you tend to exhibit this behavior in an average way.

Low range: A score between 8 and 13 means you exhibit this leadership below the average or expected degree.

Extremely low range: A score between 0 and 7 means you are not inclined to exhibit this leadership behavior at all.

The scores you received on the Servant Leadership Questionnaire indicate the degree to which you exhibit the seven behaviors characteristic of a servant leader. You can use the results to assess areas in which you have strong servant leadership behaviors and areas in which you may strive to improve.

Chapter 10 Servant Leadership 253

SUMMARY

Originating in the seminal work of Greenleaf (1970), servant leadership is a paradoxical approach to leadership that challenges our traditional beliefs about leadership and influence. Servant leadership emphasizes that leaders should be attentive to the needs of followers, empower them, and help them develop their full human capacities.

Servant leaders make a conscious choice to serve f irst—to place the good of followers over the leaders’ self-interests. They build strong relationships with others, are empathic and ethical, and lead in ways that serve the greater good of followers, the organization, the community, and society at large.

Based on an idea from Hermann Hesse’s (1956) novel The Journey to the East, Greenleaf argued that the selfless servant in a group has an extraordi- nary impact on the other members. Servant leaders attend fully to the needs of followers, are concerned with the less privileged, and aim to remove inequalities and social injustices. Because servant leaders shift authority to those who are being led, they exercise less institutional power and control.

Scholars have conceptualized servant leadership in multiple ways. According to Spears (2002), there are 10 major characteristics of servant leadership: listening, empathy, healing, awareness, persuasion, conceptualization, fore- sight, stewardship, commitment to the growth of people, and building com- munity. Additional efforts by social science researchers to develop and validate measures of servant leadership have resulted in an extensive list of other servant leadership attributes.

Liden, Panaccio, et al. (2014) have created a promising model of servant leadership that has three main components: antecedent conditions, servant leader behaviors, and leadership outcomes. Antecedent conditions that are likely to impact servant leaders include context and culture, leader attributes, and follower receptivity. Central to the servant leader process are the seven servant leader behaviors: conceptualizing, emotional healing, putting followers first, helping followers grow and succeed, behaving ethically, empowering, and cre- ating value for the community. The outcomes of servant leadership are follower performance and growth, organizational performance, and societal impact.

Research on servant leadership has several strengths. First, it is unique because it makes altruism the main component of the leadership process. Second, servant leadership provides a counterintuitive and provocative approach to the use of influence wherein leaders give up control rather than seek control. Third, rather than a panacea, research has shown that there are

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conditions under which servant leadership is not a preferred kind of leader- ship. Last, recent research has resulted in a sound measure of servant leader- ship (Servant Leadership Questionnaire) that identifies seven distinct dimensions of the process.

The servant leadership approach also has limitations. First, the paradoxical nature of the title “servant leadership” creates semantic noise that diminishes the potential value of the approach. Second, no consensus exists on a com- mon theoretical framework for servant leadership. Third, servant leadership has a utopian ring that conflicts with traditional approaches to leadership. Last, it is not clear why “conceptualizing” is a defining characteristic of ser- vant leadership. Despite the limitations, servant leadership continues to be an engaging approach to leadership that holds much promise. As more research is done to test the substance and assumptions of servant leadership, a better under- standing of the complexities of the process will emerge.

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Covey, S. R. (2002). Foreword. In R. K. Greenleaf (Ed.), Servant leadership: A journey into the nature of legitimate power and greatness (pp. 1–14). New York: Paulist Press.

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Wheatley, M. (2002). The work of the servant leader. In L. C. Spears & M. Law- rence (Eds.), Focus on leadership: Servant-leadership for the twenty-f irst century (pp. 349–362). New York: Wiley.

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Adaptive Leadership

DESCRIPTION

As the name of the approach implies, adaptive leadership is about how leaders encourage people to adapt—to face and deal with problems, chal- lenges, and changes. Adaptive leadership focuses on the adaptations required of people in response to changing environments. Simply stated, adaptive leaders prepare and encourage people to deal with change. Unlike the trait approach (Chapter 2) or authentic leadership (Chapter 9), which focus predominantly on the characteristics of the leader, adaptive leadership stresses the activities of the leader in relation to the work of followers in the contexts in which they find themselves. Since Heifetz first published Leadership Without Easy Answers (1994), the seminal book on adaptive leadership, this approach has occupied a unique place in the leadership literature. Adaptive leadership has been used effec- tively to explain how leaders encourage effective change across multiple lev- els, including self, organizational, community, and societal. However, most of the writing about adaptive leadership has been prescriptive and based on anecdotal and observational data rather than data derived from rigorous scientific inquiry. Scholars and practitioners have recognized the merits of the approach, but the theoretical underpinnings of adaptive leadership remain in the formative stages. Development of the adaptive leadership framework emerged largely from the work of Heifetz and his associates (Heifetz, 1994; Heifetz & Sinder, 1988; Heifetz, Grashow, & Linsky, 2009; Heifetz & Laurie, 1997; Heifetz & Linsky, 2002). From the beginning, they set out to create a different approach to leadership. Rather than seeing the leader as a savior who solves

Adaptive Leadership Ronald Heifetz on Adaptive Leadership

258 LEADERSHIP THEORY AND PRACTICE

problems for people, they conceptualized the leader as one who plays the role of mobilizing people to tackle tough problems (e.g., drug abuse or sex- ism in the workplace). An adaptive leader challenges others to face difficult challenges, providing them with the space or opportunity they need to learn new ways of dealing with the inevitable changes in assumptions, perceptions, beliefs, attitudes, and behaviors that they are likely to encounter in address- ing real problems.

Adaptive Leadership Defined

Although people often think of adaptive leadership as being leader centered, it is actually more follower centered. It focuses primarily on how leaders help others do the work they need to do, in order to adapt to the chal- lenges they face. Generally, adaptive leadership is concerned with how people change and adjust to new circumstances. In this chapter, we emphasize the process leaders use to encourage others to grapple with difficult problems. In the leadership literature, Heifetz and his colleagues suggest that “adaptive leadership is the practice of mobilizing people to tackle tough challenges and thrive” (Heifetz et al., 2009, p. 14). In contrast to emphasizing the position or characteristics of the leader, this definition suggests that leadership is con- cerned with the behaviors of leaders. This approach also makes a distinction between leadership and authority (Heifetz and Sinder, 1988). Leadership revolves around work and how people are mobilized to do work. It is not defined by position, so anyone can exhibit leadership. In contrast, authority revolves around power and how it is formally (e.g., position) and informally (e.g., admiration) conferred to leaders by followers. Authority allows leaders to do what followers expect them to do and is a primary tool for exercising leadership and giving followers a sense of security and protection. Adaptive leaders engage in activities that mobilize, motivate, organize, orient, and focus the attention of others (Heifetz, 1994). In addition, this approach to leadership is about helping others to explore and change their values. The goal of adaptive leadership is to encourage people to change and learn new ways of living so that they may do well and grow. In short, adaptive leader- ship is the behavior of leaders and the actions they take to encourage others to address and resolve changes that are central in their lives. To better under- stand how adaptive leadership works, Table 11.1 provides some examples of “real world” situations in which adaptive leadership would be ideal. Conceptually, the process of adaptive leadership incorporates ideas from four different viewpoints: the systems, biological, service orientation, and psycho- therapy perspectives (Heifetz, 1994). First, adaptive leadership takes a systems

Nature of Adaptive Leadership

Chapter 11 Adaptive Leadership 259

Table 11.1 Adaptive Leadership in Practice

Adaptive leaders mobilize, motivate, organize, orient, and focus the attention of others to address and resolve changes that are central in their lives. The first step will be to help followers address the challenges they are experiencing. These are some examples of cases where adaptive leadership would be beneficial:

Church Membership

Over the past decade, the membership of a large traditional denomination of churches in the United States has shrunken by 200,000 members, which many attribute to the denomination’s stand against same-sex marriage. If the church wants to reverse the trend and begin to grow, the church leadership and its membership need to confront the social implications of their doctrinal stand on marriage and members of the LGBT community.

Company Merger

A midsize family-owned paper company merges with another similar paper company. The merger creates tensions between the employees regarding job titles and duties, different wage schedules, overtime, and vacation pay. The new owners must bring these disparate groups of employees together to have their company function successfully. They will have to identify their adaptive challenges and then decide what work needs to be done (e.g., learning new ways of performing, shedding old ways that no longer work, and reevaluating their beliefs and values).

Merit Pay

In an established engineering company, a small group of young high-achieving engineers wants to change the way merit pay is given by removing seniority and years of service as part of the criteria. Longtime employees are resisting the change. The management must find a way to address this issue without alienating either group.

Condominium Rules

You are president of a small condo association, and two groups in the association are at odds about an association rule requiring condo owners to be 55 years old or older. Some think it is important to have young people around while others do not. In addition, in this area, young, new homeowners are buying condos at higher rates than empty nesters. The president must guide the association to reach consensus in a way that will benefit the association.

perspective, in that this approach assumes that many problems people face are actually embedded in complicated interactive systems. Problems are viewed as complex with many facets, dynamic in that they can evolve and change, and connected to others in a web of relationships. Second, the biological perspective to adaptive leadership recognizes that people develop and evolve as a result of having to adapt to both their internal cues/state and external environments. The ability to adapt allows people to thrive in new circumstances. Third,

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adaptive leadership assumes a service orientation. Similar to a physician, an adaptive leader uses his or her expertise or authority to serve the people by diagnosing their problems and prescribing possible solutions. Fourth, this approach incorporates the psychotherapy perspective to explain how people accomplish adaptive work. Adaptive leaders understand that people need a supportive environment and adapt more successfully when they face difficult problems directly, learn to distinguish between fantasy and reality, resolve internal conflicts, and learn new attitudes and behaviors. Taken together, these four viewpoints help explain and characterize the nature of adaptive leadership. In addition to the way Heifetz and his colleagues defined adaptive leadership, it has been conceptualized as an element or subset of Complexity Leadership Theory, a framework designed to explain leadership for organizations of the 21st century that concentrate on knowledge or information as a core commod- ity rather than the production of goods that was prevalent in the industrial era (Uhl-Bien, Marion, & McKelvey, 2007). Complexity Leadership Theory (which includes administrative, adaptive, and enabling leadership) focuses on the strategies and behaviors that encourage learning, creativity, and adaptation in complex organizational systems. Within this framework, adaptive leader- ship is described as a complex process that emerges to produce adaptive change in a social system. It originates in struggles or tensions among people over conflicting needs, ideas, and preferences. It is conceptualized not as a person or a specific act (Uhl-Bien et al., 2007), but rather as a dynamic process. Adaptive leadership is a unique kind of leadership that focuses on the dynamics of mobilizing people to address change. In the next section, we will describe the various components of adaptive leadership and discuss how each component contributes to the overall process of adaptive leadership.

A MODEL OF ADAPTIVE LEADERSHIP

Although adaptive leadership is in the early stages of theoretical develop- ment, the initial writings about this approach provide a basis for formulating a model of the adaptive leadership process. Based on the work of Heifetz and his associates (Heifetz, 1994; Heifetz & Sinder, 1988; Heifetz et al., 2009; Heifetz & Laurie, 1997; Heifetz & Linsky, 2002), Figure 11.1 offers a visual representation of the major components of adaptive leadership and how they fit together, including situational challenges, leader behaviors, and adaptive work. Heuristically, this model provides a basis for clarifying the process of adaptive leadership as well as generating empirical research to validate and refine the concepts and principles described by the model.

Adaptive Leader Behaviors

Chapter 11 Adaptive Leadership 261

Situational Challenges

As illustrated on the left side of Figure 11.1, the practice of leadership requires that leaders address three kinds of situational challenges. There are challenges or problems that are primarily technical in nature, chal- lenges that have both a technical and an adaptive dimension, and challenges that are primarily adaptive in nature. Not all situational challenges are adaptive challenges. While addressing technical challenges is important, adaptive leadership is concerned with helping people address adaptive challenges.

Technical Challenges

Technical and Adaptive Challenges

Adaptive Challenges

Adaptive Work

Holding Environment

Leader Followers

Interaction

Leader Behaviors

1. Get on the Balcony 2. Identify the Adaptive Challenge 3. Regulate Distress 4. Maintain Disciplined Attention 5. Give the Work Back to the People 6. Protect Leadership Voices from Below

Situational Challenges

Figure 11.1 Model of Adaptive Leadership

Technical Challenges

Technical challenges are problems in the workplace or community that are clearly defined with known solutions that can be implemented through existing organizational rules and procedures. They are problems that can be solved by experts. For technical challenges, people look to the leader for a solution, and they accept the leader’s authority to resolve the problem. For example, if employees at a tax accounting firm are frustrated about a newly adopted tax software program, the manager at the firm could assess the software issues, identify the weaknesses and problems with the software, contact the company that provided the software, and have the programs modified in accordance with the accountants’ needs at the tax firm. In this example, the problem is identifiable, it has an achievable solution, and the manager at the tax firm has the authority to address it through the accepted

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structures and procedures of the organization. The employees look to the manager to solve the technical problem and accept her or his authority to do so.

Technical and Adaptive Challenges

Some challenges have both a technical and an adaptive dimension. In this case, the challenges are clearly defined but do not have distinct straightfor- ward solutions within the existing organizational system. The responsibility of tackling this type of challenge is shared between the leader and the peo- ple. The leader may act as a resource for others and provide support, but the people need to do the work—they need to learn to change and adapt. For example, if an urban hospital with a traditional approach to care (i.e., provid- ers are the experts, and patients are the visitors) wanted to establish a patient-centered culture, the goal could be clearly laid out. To reach the goal, the hospital leadership, through its hierarchical authority, could provide in- service training on how to involve patients in their own care. New rules could be designed to preserve patients’ personal routines, to give them access to their own records, and to give them more control of their own treatment. However, the staff, doctors, patients, and family members would need to accept the proposed change and learn how to implement it. Making the hospital a model of patient-centered care would require a lot of work and adaptation on the part of many different people.

Adaptive Challenges

Central to the process of adaptive leadership are adaptive challenges. Adaptive challenges are problems that are not clear-cut or easy to identify. They cannot be solved by the leader’s authority or expertise or through the normal ways of doing things in the organization. Adaptive challenges require that leaders encourage others, with their support, to define challenging situations and implement solutions. Not easy to tackle and often resisted, adaptive chal- lenges are difficult because they usually require changes in people’s assump- tions, perceptions, beliefs, attitudes, and behaviors. An example of adaptive challenges would be the problems and concerns a family confronts when placing a parent in hospice care. In a hospice, there is a great deal of uncer- tainty for patients and families about how and when the patient will die and how to best comfort the patient during this time. While hospice workers can give support and informal feedback about the dying process, the patient and his or her family have to come to grips with how they want to approach the patient’s final days. What does the impending loss mean? How can they

Technical or Adaptive Challenge

Chapter 11 Adaptive Leadership 263

prepare for it? How will they cope with the loss going forward? In this con- text, adaptive leadership is about mobilizing the patient and family members to address the many questions and concerns that surround the death of the family member. Hospice nurses, social workers, and staff all play an important role in helping families cope, but at the same time, it is the families that have to confront the complexities and concerns of the impending loss.

Leader Behaviors

As shown in the middle of Figure 11.1, six leader behaviors, or activities, play a pivotal role in the process of adaptive leadership. Based on the work of Heifetz and his colleagues (Heifetz, 1994; Heifetz & Laurie, 1997), these behaviors are general prescriptions for leaders when helping others confront difficult challenges and the inevitable changes that accompany them. Although there is a general order as to which leader behavior comes first in the adaptive leadership process, many of these behaviors overlap with each other and should be demonstrated by leaders at the same time. Taken together, these leader behaviors suggest a kind of recipe for being an adaptive leader.

1. Get on the Balcony

A prerequisite for the other adaptive leader behaviors, “getting on the balcony” is a metaphor for stepping out of the fray and finding perspective in the midst of a challenging situation. It is an allusion to a dance floor and that one needs to be above the dancing to understand what’s going on below. Being on the balcony enables the leader to see the big picture—what is really happening. On the balcony, the leader is momentarily away from the noise, activity, and chaos of a situation, allowing him or her to gain a clearer view of reality. It allows the leader to identify value and power con- flicts among people, ways they may be avoiding work, and other dysfunc- tional reactions to change (Heifetz & Laurie, 1997). Getting on the balcony can include such things as taking some quiet time, forming a group of unofficial advisers for alternative discussions about organizational issues, or simply attending meetings as an observer. In the model, the adaptive leader is urged to step away from the conflict in order to see it fully, but never to dissociate entirely from the conflict. Effective leaders are able to move back and forth as a participant and observer between the struggles of their people and the intentions of the group, organization, or community. To understand what it means to stand on the balcony, imagine yourself as the principal of an elementary school. From the balcony, you see all the pieces that go into educating your students: federal and state

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requirements, teachers and staff, budgets, teacher evaluations, parents and discipline, not to mention the children themselves. From above, you can see how these issues relate to and affect one another, and who is dancing with which partners, all while working toward the common goal of educating children. Another example would be a chief union negotiator, who in the midst of difficult labor talks steps away from the table for a moment to separate from the emotion and intensity and reflect on the goals of the talks. Once this leader feels she again has a grasp of the issues at hand, she dives directly back into negotiations. In both of these examples, the leader takes time to see the “big” picture as an observer but also stays engaged as a participant with the challenges his or her people are confronting.

2. Identify Adaptive Challenges

In addition to getting on the balcony and observing the dynamics of the complex situations people face, leaders must analyze and diagnose these challenges. Central to this process is differentiating between technical and adaptive challenges. Failures in leadership often occur because leaders fail to diagnose challenges correctly. The adaptive leadership process suggests that leaders are most effective using adaptive leadership behaviors for adap- tive challenges and technical leadership for technical challenges. Treating challenges with the wrong kind of leadership is maladaptive. If challenges are technical in nature, leaders can fix the problem with their own expertise. For example, in a manufacturing environment, problems that arise in scheduling, product sales quotas, facility expansion, or raising the minimum wage are all problems the leader can use his or her authority to resolve. However, it is essential that a leader also know when his or her authority is not sufficient or appropriate to address a particular challenge. When people’s beliefs, attitudes, and values are affected by a problem, lead- ers need to take an adaptive approach. How a leader decides if he or she faces an adaptive challenge is to determine whether or not the challenge strikes at the core feelings and thoughts of others. Adaptive challenges are usually value laden and stir up people’s emotions. Furthermore, if challenges require that people learn new ways of coping, they are adaptive. Take the manufac- turing environment that was discussed earlier. If another company buys that manufacturing facility and the new owners implement production proce- dures and standards that the facility’s workers are unfamiliar with, these changes would create adaptive challenges for the workers. Identifying adaptive challenges means leaders need to focus their attention on problems

Member Expertise

Chapter 11 Adaptive Leadership 265

they cannot solve themselves and that demand collaboration between the leader and followers. For adaptive challenges, leaders do what is necessary (e.g., give support, challenge, or even take themselves out of the picture) to mobilize others to do the work they need to do.

To more easily identify complex adaptive challenges and also distinguish them from technical challenges, there are four archetypes or basic patterns of adaptive change to consider (Heifetz et al., 2009). Archetype 1: Gap Between Espoused Values and Behavior. This archetype is pres- ent when an organization espouses, or claims, to adhere to values that it doesn’t in reality support by its actions. For example, a company that promotes itself as a family-friendly place to work but does not have a flexible-hour work policy, an extended maternity leave policy, or in-house child care doesn’t have behaviors that match the family-friendly image it promotes itself as having.

Archetype 2: Competing Commitments. When an organization has numerous commitments and some come into conflict with each other, this archetype is in play. For example, a health and fitness center wants to grow and expand its services but at the same time sees the best way to reduce costs is by trim- ming the number of trainers and staff it employs. Archetype 3: Speaking the Unspeakable. The phrases “sacred cow” and “ele- phant in the room” are examples of this archetype—when there are radical ideas, unpopular issues, or conflicting perspectives that people don’t dare address because of their sensitive or controversial nature. Speaking out about these is seen as “risky.” Consider an organization with a well-liked, estab- lished owner who is perceived by the employees as “over the hill” and not in touch with the current business climate, but no one is willing to discuss the matter. It is easier to suffer the consequences of the owner’s dated leadership than confront the man and risk hurting him. Archetype 4: Work Avoidance. This archetype represents a situation where people avoid addressing difficult issues by staying within their “comfort zone” or by using diversionary methods. For example, coworkers at a com- pany refuse to confront or discuss a very skilled employee who is not par- ticipating in organizational planning because he feels the company suffers from institutional racism. It is easier to continue to do the same things and avoid the concerns of the disgruntled employee. Another example would be an ad agency that has a graphic designer who is not able to produce the quality of creative work needed, so, rather than address the problem directly, that designer is assigned menial jobs that are essentially busy work. The agency then hires a second graphic designer to do the more creative work

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despite the cost and the fact that the agency doesn’t have enough work to justify two designers. These four archetypes are representative of some of the common challenges that require adaptive change. Although they do not describe every possible type of adaptive change, they are useful as frames of reference when trying to identify adaptive challenges in a particular organizational setting.

3. Regulate Distress

A third behavior, or activity, important for adaptive leaders is to regulate distress (Figure 11.1). Psychologically, we all have a need for consistency— to keep our beliefs, attitudes, and values the same. In fact, it is quite natural for individuals to be more comfortable when things are predictable and their way of doing things stays the same. But adaptive challenges create the need to change, and the process of change creates uncertainty and distress for people. Feeling a certain level of distress during change is inevitable and even useful for most, but feeling too much distress is counterproductive and can be debilitating. The challenge for a leader is to help others recognize the need for change but not become overwhelmed by the need for the change itself. The adaptive leader needs to monitor the stress people are experiencing and keep it within a productive range. This is what it means to regulate distress. The model suggests three ways that leaders can main- tain productive levels of stress: (1) create a holding environment; (2) provide direction, protection, orientation, conflict management, and productive norms; and (3) regulate personal distress.

Creating a holding environment. This refers to establishing an atmo- sphere in which people can feel safe tackling difficult problems, but not so much so that they can avoid the problem. You can think of a holding envi- ronment in terms of a child learning to swim—the instructor is within a watchful distance, but allows the child to do the hard work of overcoming his or her fears and learning to kick, breathe, and stroke in sync. A holding environment is a structural, procedural, or virtual space formed by cohesive relationships between people. It can be physical space, a shared language, common history, a deep trust in an institution and its authority, or a clear set of rules and processes that allow groups to function with safety. As illustrated in Figure 11.1, the holding environment represents the space where the work of adaptive leadership gets played out. The idea of a holding environment has its roots in the field of psychotherapy where the counselor creates a therapeutic setting and uses effective communication and empathy to pro- vide a sense of safety and protection for the client (Heifetz & Linsky, 2002;

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Modell, 1976). Within the holding environment, adaptive leaders use authority to help people attend to the issues, to act as a reality test regarding information, to orchestrate conflicting perspectives, and to facilitate decision making (Heifetz, 1994, p. 113). Creating a holding environment also allows a leader to regulate the pressures people face when confronting adaptive challenges. It can be described as analogous to a pressure cooker because initially a leader turns up the heat on the issues. This gets dialogue started and also allows some of the pressures from the issues to escape. If too much tension concerning issues is expressed, the holding environment can become too intense and ineffective for address- ing problems. However, without the leader’s initial catalyst of the issues, little dialogue would transpire. Similar to labor negotiations in organizations, the holding environment is the place where all parties gather to begin talking to each other, define issues, and clarify competing interests and needs. If this discussion is too heated, negotiations reach a quick impasse. However, as negotiation develops, newer issues can be addressed. Over time the holding environment provides the place where new contractual relationships can be agreed upon and enacted. Providing direction, protection, orientation, conflict management, and productive norms. These are specific ways leaders can use their formal and informal authority to help people manage the uncertainty and distress that accompany adaptive work. They are prescribed behaviors for adaptive leaders.

Providing direction involves helping identify the adaptive challenges that others face and then framing these so they can be addressed. In difficult situations it is not uncommon for people to be unclear or con- fused about their goals. Sometimes the goal is unknown, sometimes it is obscure, and at other times it is entangled with competing goals. By providing direction, the leader helps people feel a sense of clarity, order, and certainty, reducing the stress people feel in uncertain situations. Protection refers to a leader’s responsibility to manage the rate of adaptive change. It includes monitoring whether the change is too much or too fast for people. Furthermore, it requires monitoring external pressures people are experiencing and keeping these within a range they can tolerate. Orientation is the responsibility a leader has to orient people to new roles and responsibilities that may accompany adaptive change. When a change requires adopting new values and acting in accor- dance with those values, people may need to adopt entirely new roles

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within the organization. Orientation is the process of helping people to find their identity within a changing system. Conflict management refers to the leader’s responsibility to handle conflict effectively. Conflict is inevitable in groups and organizations during adaptive challenges and presents an opportunity for people to learn and grow. Although conflict can be uncomfortable, it is not unhealthy, nor is it necessarily bad. The question is not “How can people avoid conflict and eliminate change?” but rather “How can people manage conflict and produce positive change?” Establishing productive norms is a responsibility of the adaptive leader. Norms are the rules of behavior that are established and shared by group members and are not easily changed. When norms are con- structive, they have a positive influence on the progress of the group. However, when norms are unproductive and debilitating, they can impede the group. A leader should pay close attention to norms and challenge those that need to be changed and reinforce those that maximize the group’s effectiveness and ability to adapt to change.

Collectively, the five prescribed behaviors above provide a general blueprint for how adaptive leaders can mitigate the frustrations people feel during adaptive change. While not inclusive, they highlight some of the many important ways leaders can help people during the change process. Regulating personal distress. This is a third way leaders can maintain a productive level of stress during adaptive change. As we discussed previously, change and growth within an organization do not occur without uncertainty and stress. Because stress is inherent in change, adaptive leaders need to withstand the pressures from those who want to avoid change and keep things the same. While moderate amounts of tension are normal and neces- sary during change, too much or too little tension is unproductive. Leaders need to keep people focused on the hard work they need to do and the ten- sion that accompanies that, while at the same time being sensitive to the very real frustrations and pain that people feel when doing adaptive work. To help others through the adaptive process, adaptive leaders need to make sure they have their own act together. They must be strong and steady because people look to and depend on them for support in situations that can be very trying and painful. Adaptive leaders need to be role models and exhibit confidence and the emotional capacity to handle conflict. This is not a stress-free role. Adaptive leaders need to be willing to experience the frus- trations and pain that people feel during change but not to the extent that they lose their own sense of who they are as leaders.

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An example of the demands of regulating personal distress can be seen in the leadership of a therapist who runs a support group for high school stu- dents recovering from substance abuse. In her role as a group facilitator, the therapist faces many challenges. She has to listen to students’ stories and the challenges they face as they try to stay clean. She also has to push people to be honest about their successes and failures regarding drug use. She cannot push so hard, however, that group members feel threatened, stop communi- cating, or stop attending the group sessions. In the holding environment, she has to be able to show nurturance and support, but not enable destructive behavior. The pain and frustrations recovering addicts feel are tremendous, and the therapist has to be in touch with this pain without losing her role as therapist. Hearing stories of recovery and failed recovery can be heartbreak- ing, while hearing success stories can be uplifting. Throughout all of this, the therapist needs to monitor herself closely and control her own anxieties regarding recovery. Group members look to the therapist for direction and support. They want the therapist to be strong, confident, and empathic. Regulating her own stress is essential in order to make herself fully available to students who are recovering from substance abuse.

4. Maintain Disciplined Attention

As illustrated in Figure 11.1, the fourth leader behavior described by the adaptive leadership process is to maintain disciplined attention. This means that the leader needs to encourage people to focus on the tough work they need to do. This does not come easily; people naturally do not want to confront change, particularly when it is related to changing their beliefs, values, or behaviors. It is common for all of us to resist change and strive for a sense of balance and equilibrium in our day-to-day experiences. People do not like things “out of sync,” so when their sense of balance is disrupted by the need to change, it is natural for them to engage in avoidance behavior. Maintaining disciplined attention is about the leader helping people address change and not avoid it. Avoidance behaviors can take many forms. People can ignore the problem, blame the problem on the authority, blame coworkers for the problem, attack those who want to address the problem, pretend the problem does not exist, or work hard in areas unrelated to the problem. No matter the form of avoid- ance, the leader’s task is to mobilize and encourage people to drop their defenses and openly confront their problems. Adaptive leaders help people focus on issues. If some topics are deemed to “hot” in the organization, the leader should support people in getting these topics on the agenda for dis- cussion. If some issues create deep divisions between people, the leadership

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should provide a vessel of safety where competing sides can address the issues without feeling as if the organization will explode. If there is an “ele- phant in the room”—an issue no one wants to address but that is pivotal in making change—the leader needs to nudge people to talk about it. Whatever the situation, the adaptive leader gets people to focus—to show disciplined attention to the work at hand. An example of disciplined attention can be seen in how the director of an assisted care facility responds to the members of a family who are struggling with their decision to move their 80-year-old mother into nursing care. The mother has early signs of dementia, but has successfully lived alone since her husband died 10 years earlier and prides herself on being able to cook, drive, and live independently. Although her forgetfulness and physical problems have her two adult children very concerned about their mother’s health and safety, they just cannot bring themselves to make their mother move from her home. They say things like “Mom just doesn’t need it yet. She is so much better than those people at the care facility. She won’t survive in a new envi- ronment. She just won’t be herself if she’s not at her own home.” The direc- tor of the assisted care facility’s challenge is to help them make the decision—a decision they are afraid of making, and avoiding. He always gives a listening ear and sets up multiple appointments for the children to visit the care facility. In addition, he arranges for the children to talk to staff members and other families who have a parent at the facility. In all of these sessions, the director emphasizes the importance of the children communi- cating their concerns while letting them know that the children’s concerns and hesitations are normal because accepting the failing health of a parent is very difficult. He continues to tell them gently, without sounding like he’s selling something, the benefits of going into the assisted care facility: The parent will be safer, receive good care, and learn to thrive in her new home. In this example, the director is sensitive to the adaptive challenges the chil- dren face, and he makes a point of “standing by” and giving guidance and support. The director helps the children stay focused on the changes they need to make and mobilizes them to confront their decisions.

5. Give the Work Back to the People

A fifth leader behavior important for adaptive leaders is to give the work back to the people (Figure 11.1). People want leaders to provide some direc- tion and structure to their work and want to feel secure in what they are doing, but too much leadership and authority can be debilitating, decrease people’s confidence to solve problems on their own, and suppress their cre- ative capacities. Overly directive leadership can result in people being

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dependent on their leaders and inhibit them from doing adaptive work. Even though it makes people feel comfortable and secure to have leaders tell them what to do, leaders need to learn ways to curtail their influence and shift problem solving back to the people involved.

Leaders need to be aware of and monitor the impact they have on others. Giving work back to the people requires a leader to be attentive to when he or she should drop back and let the people do the work that they need to do. This can be a fine line; leaders have to provide direction, but they also have to say, “This is your work—how do you think you want to handle it?” For adaptive leaders, giving work back to the people means empowering people to decide what to do in circumstances where they feel uncertain, expressing belief in their ability to solve their own problems, and encouraging them to think for themselves rather than thinking for them. The famous boarding school Summerhill, on the east coast of England, provides a good example of where giving the work back to the people takes center stage. Summerhill is a self-governing, democratic school where adults and students have equal status. Summerhill’s philosophy stresses that stu- dents have the freedom to take their own path in life and develop their own interests so long as it does not harm others. Classes are optional for students who have the freedom to choose what they do with their time. The schedules and rules of the school are established in weekly group meetings at which all participants have an equal vote. Summerhill’s leaders give the work of learn- ing back to the students. Instead of the teachers telling students what to study and learn, the students themselves make those decisions within a sup- portive environment. It is an unusual model of education and not without its problems, but it clearly demonstrates recognition of the need for students, and not their teachers, to identify and define their goals and take responsibil- ity for meeting those goals.

6. Protect Leadership Voices from Below

A final leader behavior that is important to the adaptive leadership process is protecting leadership voices from below (Figure 11.1). This means that adaptive leaders have to be cautious to listen and be open to the ideas of people who may be at the fringe, marginalized, or even deviant in the group or organization. This is a challenge because when the leader gives voice to an out-group member, it is upsetting to the social equilibrium of the group. To be open to the ideas of low-status individuals, who often may express themselves ineffectively, is also challenging because it is disruptive to the “normal” way of doing things. Too often, leaders find it convenient

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to ignore the dissident, nonconforming voices in an effort to maintain things as they are and keep things moving. Adaptive leaders should try to resist the tendency to minimize or shut down minority voices for the sake of the majority. To give voice to others requires that a leader relinquish some control, giving other individual members more control. This is why it is a challenging process. Protecting voices from below is important because it puts low-status indi- viduals on equal footing with other members of the group. It means the leader and the other people of the group give credence to the out-group members’ ideas and actions. When out-group members have a voice, they know their interests are being recognized and that they can have an impact on the leader and the group. Giving them voice allows low-status members to be more involved, independent, and responsible for their actions. It allows them to become more fully engaged in the adaptive work of the group, and they can feel like full members in the planning and decision making of the group. Consider a college social work class in which students are required to do a service-learning project. For this project, one group chose to build a wheelchair ramp for an elderly woman in the community. In the initial stages of the project, morale in the group was down because one group member (Alissa) chose not to participate. Alissa said she was not com- fortable using hand tools, and she chose not to do manual labor. The other team members, who had been doing a lot of planning for the proj- ect, wanted to proceed without her help. Alissa felt rejected and began to criticize the purpose of the project and the personalities of the other team members. At that point, one of the group’s leaders decided to start listening to Alissa’s concerns. He learned that while Alissa could not work with her hands, she had two other talents: She was good with music, and she made wonderful lunches. As a result, Alissa was asked to use her strengths for the group. During the construction of the ramp, Alissa kept up morale by playing each group member’s and the elderly woman’s favorite music while they worked on the ramp. In addition, Alissa made sandwiches and provided drinks that accommodated each of the group members’ unique dietary interests. By the last day, Alissa felt so included by the group, and was praised so frequently for providing great food, that she joined in the manual labor and began raking up trash around the ramp site. Although Alissa’s talents didn’t tie in directly with constructing a ramp, she still contributed to building a successful team, which would not have happened if the leader had not given voice to Alissa’s concerns and talents.

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Adaptive Work

As represented on the right side of the model of adaptive leadership (Figure 11.1), adaptive work is the process toward which adaptive leaders direct their work. It is the focus and intended goal of adaptive leadership. Adaptive work develops from the communication process that occurs between the leader and followers but is primarily the work of followers. It occurs within a hold- ing environment where people can feel safe as they confront possible changes in their roles, priorities, and values. The model illustrates that the holding environment is the place where adap- tive work is conducted. It is a real or virtual space where people can address the adaptive challenges that confront them. Because the holding environ- ment plays a critical role in the adaptive process, leaders direct considerable energy toward establishing and maintaining it. While the term followers is used in the holding environment portion of the model to depict individuals who are not the leader, it is important to note that throughout most of the writing on adaptive leadership, the term follower is not used because it implies a submissive role in relationship to the leader. In adaptive leadership, leaders do not use their authority to control others; rather, leaders interact with people to help them do adaptive work. The term followers is used in the model simply to distinguish the specific individuals who are doing adaptive work. An example of adaptive work can be seen at a fitness center where a fitness instructor is running a class for a group of individuals who have had heart problems and struggle with being overweight. The goal of the instructor is to provide a safe place where people can challenge themselves to do training exercises that will help them to lose weight and reduce their risk for health problems. Because the people must change their lifestyles to live more healthfully, they must engage in adaptive work with the support of the fit- ness instructor. Another example where adaptive work can be observed is in a public ele- mentary school where the principal is asking the teachers to adopt the Common Core State Standards but the teachers, who have a proven record of success using their own student-centered curriculum, are resisting. To help the teachers with the intended change, the principal sets up a series of 10 open faculty meetings where teachers are invited to discuss freely their con- cerns about the new policies. The meetings provide a holding environment where teachers can confront their deeply held positions regarding the useful- ness and efficacy of standardized testing and what it will mean for them to

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have to shift to the Common Core. The principal’s role is to communicate in ways that support the teachers in their adaptive work.

HOW DOES ADAPTIVE LEADERSHIP WORK?

Adaptive leadership is a complex process comprising multiple dimensions, including situational challenges, leader behaviors, and adaptive work. The overriding focus of the process is to engage individuals in doing adaptive work. This unique emphasis, on mobilizing individuals (followers) to con- front adaptive challenges, makes adaptive leadership very different from other traditional leadership approaches that focus on leader traits (Chapter 2), skills (Chapter 3), behaviors (Chapter 4), and authenticity (Chapter 9). Adaptive leadership centers on the adaptations required of people in response to changing environments and how leaders can support them during these changes. The process of adaptive leadership works like this: First, the leader takes time to step back from a challenging situation to understand the com- plexities of the situation and obtain a fuller picture of the interpersonal dynamics occurring among the participants. Second, in any situation or context where people are experiencing change, the leader first makes an assessment to determine if the change creates challenges that are technical or adaptive in nature. If the challenges are technical, the leader addresses the problems with his or her authority and expertise or through the rules and procedures of the organization. If the challenges are adaptive, the leader engages in several specific leader behaviors to move the adaptive process forward. While the recipe for adaptive leadership is composed of many leader behaviors and activities, there is no particular order to the prescribed behaviors. Adaptive leadership incorporates many of these behaviors simultaneously, and interdependently, with some of them more important at the beginning of the process and others at the end. Some important adaptive leader behaviors are regulating distress, creating a holding envi- ronment, providing direction, keeping people focused on important issues, empowering people, and giving voice to those who feel unrecognized or marginalized. Overall, it is safe to say that adaptive leadership works because leaders are willing to engage in all of these behaviors with the intention of helping fol- lowers do adaptive work.

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STRENGTHS

In its present stage of development, adaptive leadership has multiple strengths. First, in contrast to many other leadership theories, adaptive leadership takes a process approach to the study of leadership. Consistent with the process definition of leadership discussed in Chapter 1, adaptive leadership underscores that leadership is not a trait or characteristic of the leader, but rather a complex interactional event that occurs between leaders and followers in different situations. The process perspective highlights that leaders and followers mutually affect each other, making leadership an interactive activity that is not restricted to only a formal, designated leader. This approach emphasizes that the phenomenon of leadership is a complex interactive process comprising multiple dimensions and activities.

Second, adaptive leadership stands out because it is follower centered. Adaptive leaders mobilize people to engage in adaptive work. The adaptive approach to leadership is other directed, stressing follower involvement and follower growth. The raison d’être of adaptive leaders is to provide a holding environment where others can learn, grow, and work on the changes that are needed. This approach encapsulates leadership as those behaviors and actions leaders need to engage in to give followers the greatest opportunity to do adaptive work.

Third, adaptive leadership is unique in how it directs attention to the use of leadership to help followers deal with conflicting values that emerge in chang- ing work environments and social contexts. Change and learning are inher- ent in organizational life, and adaptive leadership focuses specifically on helping followers to confront change and examine the emergence of new values that may accompany change. No other leadership approach’s central purpose is to help followers confront their personal values and adjust these as needed in order for change and adaptation to occur.

Another strength of adaptive leadership is that it provides a prescriptive approach to leadership that is useful and practical. In their writings, Heifetz and his colleagues (Heifetz, 1994; Heifetz & Sinder, 1988; Heifetz et al., 2009; Heifetz & Laurie, 1997; Heifetz & Linsky, 2002) identify many things leaders can do to facilitate adaptive leadership. The leader behaviors in Figure 11.1 are prescriptions for what an adaptive leader should do. For example, “get on the balcony,” “regulate distress,” and “give work back to the people” are all prescrip- tive behaviors leaders can use to mobilize followers to do the work they need to do to adapt or change. In a general sense, even the model is prescriptive. It suggests that followers should learn to adapt and leaders should set up a con- text where this is most likely to occur. In short, adaptive leadership provides a

Adaptive Transformational Leadership