Assignment 7

may2025

CH15PPT-withnotes.pptx

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Chapter 15

Leadership

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Introduction

Research focuses on two key leadership issues

Why some organizational members become leaders, while others do not

Why some leaders are successful, while others are not

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Leadership has been a topic of interest, speculation, and debate since the time of Plato. In organizations around the world, from massive conglomerates to small custom fabrication shops, the same lament emerges: Where are the leaders? Who are the best leaders? What are the attributes of the best leaders? The measure of the effectiveness of leading that no one is tired of reading and reflecting about is results achieved. During the study of history, we have learned a great deal about what leadership is—and about what it isn’t. Despite all the thousands of studies that have been conducted, however, there is still a great deal we do not know. In this chapter, we will examine some of what we do know about leadership. We will provide a concise historical and contemporary overview of leadership, and we will focus on current and emerging leadership concepts and consider applications that provide value.

What is Leadership?

There is no consensus on what leadership is

Leadership qualities important in one situation may not be required in another

Variables with which every leader must deal

The people who are being led

The task the people are performing

The environment in which the people and task exist

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With so much interest in leadership, it might be assumed that everyone is in general agreement about what constitutes leadership. Such is not the case.

Every leader must deal with three important variables: the people who are being led, the task that the people are performing, and the environment in which the people and the task exist. Because these three variables are different in every situation, what is expected and needed from a leader will be different in every situation.

What is Leadership?

The process of influencing others to facilitate the attainment of the organization’s goals

A formal leadership position is not needed to exert leadership behavior

Informal leaders can be just as important to a group’s success as is the formal leader

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The fact that leaders and leadership situations differ has led to numerous leadership definitions. Some definitions of leadership are based on leader characteristics, some on leader behaviors, still others on outcomes or end results. A definition of leadership needs to be sufficiently broad to accommodate different theories, research findings, and applications. We define leadership as the process of influencing others to facilitate the attainment of organizationally relevant goals. Note that as specified by this definition you do not have to be in a formal leadership position to exert leadership behavior. The role of informal leader can be every bit as important to a group’s success as is that of the formal leader.

What is Leadership?

Virtually all leaders of effective groups:

Provide direction and meaning to followers

Generate trust

Favor action and risk taking

Are purveyors of hope

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Differences in definitions, leadership expectations, and the three significant variables that are a part of all leadership situations (people, task, environment) notwithstanding, there are some leadership commonalities. For example, Warren Bennis, who has devoted decades to researching leadership issues, concludes that virtually all leaders of effective groups share the four characteristics shown on the slide.

Is Leadership Important?

Leaders can make a difference in end results

The specific behaviors used to do this are ambiguous

Evidence of the effect of leadership on performance is modest

Even at the highest levels, leaders do not have unilateral control over resources and external factors

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Empirical evidence of the magnitude of the effects of leadership on performance is modest. Several reasons have been cited to explain these modest effects. First, those selected as leaders are similar in background, experience, and qualifications. The similarity across selected individuals reduces the range of characteristics exhibited by leaders. Second, leaders at even the highest levels do not have unilateral control over resources. Major decisions require approval, review, and the use of modifications suggested by others. Third, many factors cannot be controlled by a leader. Labor markets, environmental factors, and policies are often outside a leader’s direct control. External factors may be overwhelming and uncontrollable, no matter how astute, insightful, and influential a leader may be.

Is Leadership Important?

Bosses are often replaced with teams, but no successful team is without leadership

Self-managing teams

Empowerment teams

Autonomous work groups

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Manz and Sims have clearly pointed out a way of thinking that emphasizes the replacement of “bosses” with teams of employees who serve as their own bosses. The concept has been labeled variously as self-managing teams, empowerment teams, and autonomous work groups. The teams described by Sims and Manz may not have bosses, but they do have leaders. As these organizational researchers state, “No successful team is without leadership.” Manz and Sims have described “superleaders,” individuals who lead others to lead themselves to higher levels of performance. Team leaders sometimes emerge or are sometimes appointed. They can be called coordinators, facilitators, or coaches. They exert influence from a position of respect or expertise that is accepted by the other team members.

Trait Approaches

The trait theory of leadership

An attempt to identify specific characteristics associated with leadership success

Characteristics can be physical, mental, or personality

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Much of the early discussion and research on leadership focused on identifying intellectual, emotional, physical, and other personal traits of effective leaders. This approach assumed that a finite number of individual traits of effective leaders could be found. To a significant extent, the personnel testing component of scientific management supported the trait theory of leadership. In addition to being studied by testing, the traits of leaders have been examined by observation of behavior in group situations, by choice of associates (voting), by nomination or rating by observers, and by analysis of biographical data.

EXHIBIT 15.1 Traits Associated with Leadership Effectiveness

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Exhibit 15.1 summarizes a number of the most researched traits of leaders (traits found most likely to characterize successful leaders). Some studies have reported that these traits contribute to leadership success. However, leadership success is neither primarily nor completely a function of these or other traits.

Trait Approaches

Reasons For Trait Theory Contradictory

Research Findings

The list of important traits is endless

Trait test scores aren’t consistently predictive of leader effectiveness

Leadership traits don’t operate singly, but in combination

Patterns of effective behavior depend largely on the situation

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Although in some studies traits such as those in Exhibit 15.1 have differentiated effective from ineffective leaders, research findings are still contradictory for a number of possible reasons. First, the list of potentially important traits is endless. Every year, new traits—such as the sign under which a person is born, handwriting style, and order of birth—are added to personality, physical characteristics, and intelligence. This continual “adding on” results in more confusion among those interested in identifying leadership traits. Second, trait test scores aren’t consistently predictive of leader effectiveness. Leadership traits don’t operate singly to influence followers, but act in combination. This interaction influences the leader–follower relationship.

Third, patterns of effective behavior depend largely on the situation: Leadership behavior that’s effective in a bank may be ineffective in a laboratory. Finally, the trait approach fails to provide insight into what the effective leader does on the job. Observations are needed that describe the behavior of effective and ineffective leaders. Despite its shortcomings, the trait approach is not completely invalid. Kirkpatrick and Locke found evidence that effective leaders are different from other people.

Behavioral Approaches

Job-centered Leaders

Focus on completing the task

Use close supervision to ensure subordinates perform tasks using specified procedures

Employee-centered Leaders

Focus on the people doing the work

Delegate decision making

Satisfy employee needs

Creative a supportive work environment

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In the 1940s, researchers began to explore the notion that how a person acts determines that person’s leadership effectiveness. Instead of searching for traits, these researchers examined leader behaviors and their impact on the performance and satisfaction of followers.

In 1947, Rensis Likert began studying how best to manage the efforts of individuals to achieve desired performance and satisfaction objectives. The purpose of most leadership research by the Likert-inspired team at the University of Michigan was to discover the principles and methods of effective leadership.

Through interviewing leaders and followers, researchers identified two distinct styles of leadership, referred to as job-centered and employee-centered. The job-centered leader focuses on completing the task and uses close supervision so that subordinates perform their tasks using specified procedures.

Initiating Structure and Consideration

Initiating structure

The leader organizes and defines relationships in the group

Establishes well-defined patterns and channels of communication

Spells out ways of getting the job done

Consideration

Behavior indicating friendship, trust, respect, warmth, and rapport between leaders and followers

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One of the more significant leadership research programs that developed after World War II was led by Edwin Fleishman and his associates at The Ohio State University. This important research program yielded a two-factor theory of leadership. A series of studies isolated two leadership factors, referred to as initiating structure and consideration.

Initiating structure designates behavior in which the leader organizes and defines the relationships in the group, tends to establish well-defined patterns and channels of communication, and spells out ways of getting the job done. The leader with a high initiating structure tendency focuses on goals and results. Consideration involves behavior indicating friendship, mutual trust, respect, warmth, and rapport between the leader and the followers. The leader with a high consideration overview supports open communication and participation.

Initiating Structure and Consideration

The linkage between consideration and initiating structure is complex

Those scoring high on initiating structure had more employee grievances, but received higher proficiency ratings

Those with a high consideration score received lower proficiency ratings, but had fewer subordinate absences

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The original premise suggested by the Ohio State researchers was that a high degree of consideration and a high degree of initiating structure (high–high) was most desirable. Since the original research was undertaken to develop the questionnaire, there have been numerous studies of the relationship between these two leadership dimensions and various effectiveness criteria A review of the literature found that initiating structure was consistently associated with leader and group performance, and consideration was associated with follower satisfaction, motivation, and leader effectiveness. The OSU personal–behavioral theory has been criticized for simplicity (e.g., only two dimensions of leadership), lack of generalizability, and reliance on questionnaire responses to measure leadership effectiveness.

Trait and Behavioral Approaches

Trait and behavioral approach shortcomings

Behaviors and characteristics, helpful or essential in some situation, are unimportant in others

These approaches fail to consider the interaction among people, tasks, and environments

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Both trait and behavioral approaches to leadership have helped us better understand the dynamics of leadership situations. Trait approaches consider personal characteristics of the leader that may be important in achieving success in a leadership role. There is no doubt that certain characteristics may be helpful—even essential—in some situations. These same characteristics, however, may be unimportant—even detrimental—in other situations. Similarly, the behavioral approaches attempt to specify which kinds of leader behaviors are necessary for effective leadership. And here again, there is no doubt that certain behaviors may be important in some situations, but may be irrelevant or damaging in others. Initiating-structure behaviors on the part of the leader, for example, may be critical to successful task completion in some situations; in others, where workers know exactly what needs to be done, such behaviors may detract from employee performance and satisfaction. At the start of the chapter we suggested that leaders needed to deal with three important variables: the people being led, the task being performed, and the environment in which the work was occurring. Trait and behavior approaches fail to consider this interaction among people, tasks, and environments. All three variables are an important part of the leadership situation, yet trait and behavior approaches ignore task and environment considerations.

Situational Approaches

Situational theories suggest that leadership effectiveness is a function of the situation

Each model has its advocates

Each tries to identify the leader behaviors most appropriate for a series of situations

Each tries to identify the leader-situation patterns or interactions for effective leadership

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When the search for the “best” set of traits or behaviors failed to discover an effective leadership mix and style for all situations, situational theories of leadership evolved that suggest leadership effectiveness is a function of various aspects of the leadership situation. A number of situational approaches have been proposed and studied. We will examine several of the more significant ones.

Situational Approaches

Contingency Leadership Model (Fiedler)

Group performance depends on the interaction between leadership style and situational favorableness

Leadership style measured by the Least-Preferred Coworker Scale (LPC)

Situational favorableness

Leader-member relations

Task structure

Position Power

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The contingency model of leadership effectiveness was developed by Fiedler and postulates that the performance of groups is dependent on the interaction between leadership style and situational favorableness. Leadership style is measured by the Least-Preferred Coworker Scale(LPC), an instrument developed by Fiedler that assesses the degree of positive or negative feelings held by a person toward someone with whom he or she least prefers to work. Low scores on the LPC are thought to reflect a task-oriented, or controlling, structuring leadership style. High scores are associated with a relationship-oriented, or passive, considerate leadership.

EXHIBIT 15.2 Summary of Fielder’s Variables & Styles

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Leadership Actions to Change Situations

To modify leader-member relations

Request particular people for work in the group

Transfer subordinates out of the unit

Volunteer to direct difficult or troublesome subordinates

To modify task structure

Introduce new or unusual tasks/problems

Break jobs down into smaller subtasks that can be more highly structured

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Fiedler is not particularly optimistic that leaders can be trained successfully to change their preferred leadership style. Consequently, he sees changing the favorableness of the situation as a better alternative. In doing this, the first step Fiedler recommends is to determine whether leaders are task- or relationship-oriented. Next, the organization needs to diagnose and classify the situational favorableness of its leadership positions. Finally, the organization must select the best strategy to bring about improved effectiveness. If leadership training is selected as an option, then it should devote special attention to teaching participants how to modify the environments and their jobs to fit their styles of leadership. That is, leaders should be trained to change their leadership situations.

Actions to change the relationship and structure situations are displayed.

Leadership Actions to Change Situations

To modify position power

Show subordinates who is boss by exercising fully the authority you have

Make sure that information to the group gets channeled through you

Let subordinates participate in planning and decision making

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Actions to change the position power situation include: Show subordinates who is boss by exercising fully the authority you have

Make sure that information to the group gets channeled through you

Let subordinates participate in planning and decision-making

Vroom-Jago Leadership Model

Assumptions

The model should help managers determine which leadership style to use in various situations

No single style is applicable to all situations

Focus should be on the problem to be solved and the situation in which it occurs

The leadership style used in one situation should not constrain the styles used in other situations

Social processes influence the amount of participation by subordinates in problem solving

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Victor Vroom and Philip Yetton initially developed a leadership decision-making model that indicated the situations in which various degrees of participative decision making would be appropriate. In contrast to Fiedler’s work on leadership, Vroom and Yetton attempted to provide a normative model that a leader can use in making decisions. The term normative refers to the fact that the model provides norms or guidelines leaders can use for dealing with decision-making situations. Their approach assumed that no one single leadership style was appropriate; rather, the leader must be flexible enough to change leadership styles to fit specific situations.

Vroom-Jago Leadership Model

Specifies the criteria by which decision effectiveness is judged

Framework for describing specific leader behaviors or styles

Diagnostic variables that describe key aspects of the leadership situation

Key Components of the Vroom-Jago Model

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In developing the model, Vroom and Yetton made these assumptions:

1. The model should be of value to managers in determining which leadership styles they should use in various situations.

2. No single style is applicable to all situations.

3. The main focus should be the problem to be solved and the situation in which the problem occurs.

4. The leadership style used in one situation should not constrain the styles used in other situations.

5. Several social processes influence the amount of participation by subordinates in problem-solving.

Vroom-Jago Leadership Model

Decision effectiveness is based on decision quality and subordinate commitment

Decision quality: the extent to which the decision impacts job performance

Subordinate commitment: how important it is that subordinates be committed to or accept the decision

May also be influenced by time constraints

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Selection of the appropriate decision-making process involves considering two criteria of decision effectiveness: decision quality and subordinate commitment. Decision quality refers to the extent to which the decision impacts job performance. On the other hand, a decision regarding at what level to set production goals requires high decision quality. Subordinate commitment refers to how important it is that the subordinates be committed to or accept the decision in order that it may be successfully implemented.

Vroom-Jago Decision Styles

Autocratic

Group

Delegated

Consultative

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The Vroom-Jago model suggests five leadership styles. The detail on the styles accompanies the discussion of the exhibit on the following slide.

Vroom-Jago Decision Styles

EXHIBIT 15.3 Vroom-Jago Decision Styles

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The Vroom-Jago model makes a distinction between two types of decision situations facing leaders: individual and group. Individual decision situations are those whose solutions affect only one of the leader’s followers. Decision situations that affect several followers are classified as group decisions. Five different leadership styles that fit individual and group situations are available. Described in Exhibit 15.3 , these styles are categorized as follows: 1. Autocratic (A): You (the leader) make the decision without input from your subordinates or you (the leader) secure input from subordinates and then make the decision. 2. Consultative (C): Subordinates have some input, but you make the decision. 3. Group (G): The group makes the decision; you (as leader) are just another group member. 4. Delegated (D): You give exclusive responsibility to subordinates.

Vroom-Jago Diagnostic Procedure

Perform a situational diagnosis by asking a series of questions

How important is the technical quality of the decision?

How important is subordinate commitment to the decision?

Do you have sufficient information to make a good decision?

Is the problem well structured?

And so on…

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To determine the most appropriate decision-making style for a given situation, Vroom suggests leaders perform a situational diagnosis by asking a series of questions, as follows: 1. How important is the technical quality of the decision? 2. How important is subordinate commitment to the decision? 3. Do you have sufficient information to make a high-quality decision? 4. Is the problem well structured? 5. If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to the decision? 6. Do subordinates share the organizational goals to be attained in solving this problem? 7. Is conflict among subordinates over preferred solutions likely? 8. Do subordinates have sufficient information to make a high-quality decision? Each of these questions may be thought of as representing a dichotomy.

Path-Goal Leadership Model

Leaders are effective because of their positive impact on followers’

Motivation, ability to perform, and satisfaction

Leaders influence followers’ perceptions of

Work goals

Self-development goals

Paths to goal attainment

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Like the other situational or contingency leadership approaches, the path–goal leadership model attempts to predict leadership effectiveness in different situations. According to this model, leaders are effective because of their positive impact on followers’ motivation, ability to perform, and satisfaction. The theory is designated path–goal because it focuses on how the leader influences the followers’ perceptions of work goals, self-development goals, and paths to goal attainment. The foundation of path–goal theory is the expectancy motivation theory discussed in Chapter 5. The early theoretical work on the path–goal theory proposed that leaders will be effective by making rewards available to subordinates and by making those rewards contingent on the subordinates’ accomplishment of specific goals. It is argued by some that an important part of the leader’s job is to clarify for subordinates the kind of behavior most likely to result in goal accomplishment. This activity is referred to as path clarification.

Path-Goal Leadership Model

Leader Behavior

Directive

Supportive

Participative

Achievement-oriented

Situational Variables

Personal characteristics of subordinates

Environmental pressures and demands

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The early path–goal work led to the development of a theory involving four specific styles of leader behavior (directive, supportive, participative, and achievement) and three types of subordinate attitudes (job satisfaction, acceptance of the leader, and expectations about effort-performance-reward relationships).

Two types of situational or contingency variables are considered in the path–goal theory. These variables are the personal characteristics of subordinates and the environmental pressures and demands with which subordinates must cope to accomplish work goals and derive satisfaction

EXHIBIT 15.4 Framework of Revised Path–Goal Leadership Perspective

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Based on mixed research results, a revised theoretical formation of the path–goal model has been presented. House, in his revised framework, proposes that research points out the complexity of leadership and a need for more categories of leadership behavior. House emphasizes the significance of intrinsic motivation and empowerment initiated by leaders. Exhibit 15.5 illustrates the characteristics of House’s revised path–goal framework.

Situational Leadership Theory

Hersey and Blanchard developed an appealing situational leadership theory

Advocates that managers understand their own behavior

Emphasizes followers and their level of maturity

Leaders must use a leadership style that matches the followers’ maturity level

Job readiness

Psychological readiness

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Managers often complain that esoteric theories don’t help them do a better job on the production line, in the office, or in a research and development lab. They want some-thing they can apply and use. Hersey and Blanchard developed a situational leadership theory that has definitely appealed to many managers. Managers in large firms and small businesses have used the situational leadership theory (SLT)and enthusiastically endorse its value. The appeal of SLT may be that its approach is intuitive and can be effectively summarized in a page. SLT’s emphasis is on followers and their level of maturity or “readiness.” The leader must properly judge or intuitively know followers’ readiness level and then use a leadership style that fits the level. Readiness is defined as the ability and willingness of people (followers) to take responsibility for directing their own behavior. It’s important to consider two types of readiness: job and psychological. A person high in job readiness has the knowledge and abilities to perform the job without a manager structuring or directing the work. A person high in psychological readiness has the self-motivation and desire to do quality work. Again, this person has little need for direct supervision.

Situational Leadership Theory

Proposed Leadership Styles

Telling

Selling

Delegating

Participating

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Hersey and Blanchard used the Ohio State studies to further develop four leadership styles available to managers:

• Telling—the leader defines the roles needed to do the job and tells followers what, where, how, and when to do the tasks.

• Selling—the leader provides followers with structured instructions, but is also supportive.

• Participating—the leader and followers share in decisions about how best to complete a high-quality job.

• Delegating—the leader provides little specific, close direction or personal support to followers.

Situational Leadership Theory

EXHIBIT 15.5 The Hersey-Blanchard Situational Leadership Model

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By determining followers’ readiness levels through discussions, observation, field surveys, and interviews, a manager can choose from among the four leadership styles. Exhibit 15.5 presents characteristics of the SLT. Application of the model works as follows. Suppose a manager determines that his recently hired followers are unsure of themselves and insecure about how to perform the job. The followers are placed at the RI readiness state. By moving from RI to the leadership style development curve, the intersection of the vertical line would be at the telling style point. That is, an RI follower requires a leader who is high on task orientation, gives direct instructions, and is low in support behavior. Task behavior is needed more for this person than supportive behavior. In fact, research is available to support the SI style over any of the others. Some may assume that a participative (S3) style is best. However, asking an insecure follower to participate may result in more insecurity about making a mistake or saying something that’s considered dumb.

Comparing Situational Approaches

Similarities between the situational leadership models

All focus on the dynamics of leadership

All have stimulated research on leadership

All remain controversial because of measurement problems, limited research testing, or contradictory research results

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Similarities between the situational leadership models include the following.

All focus on the dynamics of leadership.

All have stimulated research on leadership.

All remain controversial because of measurement problems, limited research testing, or contradictory research results.

Comparing Situational Approaches

EXHIBIT 15.6 Summary Comparison of Four Important Situational Models of Leadership

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The four situational leadership models have some similarities and some differences. They are similar in that they (1) focus on the dynamics of leadership, (2) have stimulated research on leadership, and (3) remain controversial because of measurement problems, limited research testing, or contradictory research results. Exhibit 15.6 summarizes the themes of each model. Fiedler’s model, the most tested, is perhaps the most controversial. His view of leader behavior centers on task- and relationship-oriented tendencies and how these interact with task and position power. The path–goal approach emphasizes the instrumental actions of leaders and four styles for conducting these actions (directive, supportive, participative, and achievement-oriented).

Emerging Perspectives of Leadership

Charisma enables leaders to motivate followers to achieve outstanding performance

People who take on hero qualities gain charisma

A charismatic leader creates motivation based on an emotional commitment to, and identity with, his/her vision, philosophy, and style

Charismatic Leaders

John F. Kennedy, Winston Churchill, Mother Teresa, and Steve Jobs were charismatic leaders

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A number of leadership concepts are attracting the interest of practitioners and organizational researchers. Each of the concepts in this section has provided interesting, controversial, and insightful analysis or debates about their value in improving the general understanding of how leadership can effectively impact employees.

John F. Kennedy and Winston Churchill possessed an attractiveness that enabled them to make a difference with citizens, employees, and followers. The leadership approach of such people is referred to as charismatic leadership. Max Weber suggested that some leaders have a gift of exceptional qualities—a charisma—that enables them to motivate followers to achieve outstanding performance. Such a charismatic leader is depicted as being able to play a vital role in creating change. People view the charismatic leader as a hero. Individuals who are able to take on hero qualities gain charisma. The charismatic leader is one who creates an atmosphere of motivation based on an emotional commitment to and identity with his or her vision, philosophy, and style on the part of followers.

EXHIBIT 15.7 Behavioral Components of Charismatic and Noncharismatic Leaders

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What behavioral dimensions distinguish charismatic leaders from noncharismatic leaders? In the early work on charismatic leadership, explanations lacked specificity. Later empirical studies have examined the specific behavior and attributes of charismatic leaders, such as the ability to inspire, a dominating personality, vision, and communication ability. However, no specific set of behaviors and attributes is universally accepted by researchers and practitioners. A descriptive behavioral framework that builds upon empirical work has been offered. The framework presented in Exhibit 15.8 assumes that charisma must be viewed as an attribution made by followers within the work context. Many leaders, of course, are not charismatic. These leaders exhibit behaviors similar to those described in Exhibit 15.8 as “noncharismatic.” This does not necessarily mean, however, that they are ineffective.

Two Types of Charismatic Leaders

Visionary

Through communication ability, links followers’ needs and goals to job or organizational long-term goals and possibilities

Crisis-Based

Focus is on the short-term

Has an impact in situations where existing resources, knowledge, and procedures are inadequate

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Charismatic leaders may be characterized in different ways. Two such ways, or types, are visionary and crisis-based. Most discussions of charismatic leadership emphasize visionary leadership. It’s argued that the first requirement for exercising charismatic leadership is expressing a shared vision of what the future could be. Through communication ability, the visionary charismatic leader links followers’ needs and goals to job or organizational goals. Linking followers with the organization’s direction, mission, and goals is easier if they’re dissatisfied or unchallenged by the current situation. Visionary charismatic leaders have the ability to see both the big picture and the opportunities the big picture presents.

Crisis-based charismatic leaders have an impact when the system must handle a situation for which existing knowledge, resources, or procedures are not adequate. The crisis-produced charismatic leader communicates clearly what actions need to be taken and what their consequences will be.

Transactional Leadership

Helps followers identify what must be done to achieve desired results

Uses path-goal concepts

Takes followers’ self-concept and esteem needs into consideration

Relies on contingent rewards and management by exception

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Each of the leadership approaches discussed so far emphasizes the point that leadership is an exchange process. Followers are rewarded by the leader when they accomplish agreed-upon objectives. The leader serves to help followers accomplish the objectives. The exchange role of the leader has been referred to as transactional.

Transactional Leadership

EXHIBIT 15.8 Transactional Leadership

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Exhibit 15.8 presents the transactional leadership roles. The leader helps the followers identify what must be done to accomplish the desired results: for example, better-quality output, more sales or services, reduced the cost of production. In helping the followers identify what must be done, the transactional leader considers followers’ self-concept and esteem needs. The transactional approach uses path–goal concepts as part of its framework and explanation.

Transactional Leadership

Transactional leadership is not often found in organizational settings

The majority of workers do not feel that good pay is contingent on good performance

Leaders must learn to…

Understand what employees want

Administer rewards in a timely manner

Emphasize the pay-performance link

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Transactional leadership is not often found in organizational settings. One national sample of U.S. workers showed that only 22 percent of the participants perceived a direct relationship between how hard they worked and how much pay they received. That is, the majority of workers believed that good pay was not contingent on good performance. Although workers prefer a closer link between pay and performance, it was not present in their jobs. Why? There are probably a number of reasons, such as unreliable performance appraisal systems, subjectively administered rewards, poor managerial skills in showing employees the pay–performance link, and conditions outside the manager’s control. Also, managers often provide rewards that aren’t perceived by followers to be meaningful or important.

The Transformational Leader

Motivates followers to work for…

Goals instead of short-term self-interest

Achievement and self-actualization instead of security

The employees’ reward is internal

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In using the transactional style, the leader relies on contingent rewards and on management by exception. Research shows that when contingent reinforcement is used, followers exhibit an increase in performance and satisfaction; followers believe that accomplishing objectives will result in their receiving desired rewards. Using management by exception, the leader won’t be involved unless objectives aren’t being accomplished.

The Transformational Leader

To achieve their vision, transformational leaders make major changes in the

Mission

Way of doing business

Human resource management

Philosophy, system, and culture of an organization

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Another type of leader referred to as the transformational leader, motivates followers to work for goals instead of short-term self-interest and for achievement and self- actualization instead of security. In transformational leadership, viewed as a special case of transactional leadership, the employee’s reward is internal. By expressing a vision, the transformational leader persuades followers to work hard to achieve the goals envisioned. The leader’s vision provides the follower with the motivation for hard work that is self-rewarding (internal). Transactional leaders will adjust goals, direction, and mission for practical reasons. Transformational leaders, on the other hand, make major changes in the firm’s or unit’s mission, way of doing business, and human resources management to achieve their vision. The transformational leader will overhaul the entire philosophy, system, and culture of an organization. The transformational leader uses and expounds upon attitudinal, charismatic, and transitive methods of leadership.

The Transformational Leader

Bass identified five factors that describe transformational leaders

Charisma (transformational)

Individual attention (transformational)

Intellectual stimulation (transformational)

Contingent reward (transactional)

Management by exception (transactional)

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The development of transformational leadership factors has evolved from research by Bass. He identified five factors (the first three apply to transformational, and the last two apply to transactional leadership) that describe transformational leaders. The factors are shown on the slide.

Coaching

Everyday interaction of helping another employee improve his or her understanding of the work in order to improve performance

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Coaching is the everyday interaction of helping another employee increase his or her understanding of the work and improve performance.

Coaches

Comes in all varieties

Aren’t always linked to seniority

Leader skills, experience, abilities

Talent for observing and decision making

Exceptional communication ability

Knows reward-performance feedback

Nonjudgmental

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In Chapter 2, mentoring and socialization were discussed. Mentors are usually senior employees and are often similar in background, religion, ethnicity, and gender to protégés. Coaches come in all varieties and aren’t always linked to seniority. Coaches possess skills, experience, and ability that leaders display. Included in the arsenal of exceptional coaches are a talent for observing, decisive decision making, exceptional communication ability, a good understanding of the reward–performance feedback that makes sense, and the ability to be nonjudgmental.

Coaching

Coaching hints

Observe the detail

Develop the person’s strengths

Work to improve people, not change them

Require continual improvement

Pace the person

Believe you can be the best

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From 1997 to 2002, Doug Blevins served as a kicking coach and a leader for the Miami Dolphins football team. This is remarkable because he has never attempted to kick a football in his life. Doug was born with cerebral palsy and has never walked. Doug has exceptional observational and coaching skills. He breaks each kicking motion down to its component parts. He then studies the behavior, motions, and mechanics of the kickers and develops a practice plan for each kicker (punts, field goals, kickoffs) and drills them. Doug Blevins offers a few hints on how to coach and lead that can be used in organizations which are shown on the slide.

Recommended Coaching Techniques

Practice active listening

Support learning with action & reflection

Move from easy to hard skills

Set goals

Provide tactful feedback, positive and negative

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Coaching requires confronting the fact that a person is not skilled or talented enough at present to perform well. The buildup of skills to perform well often takes a lot of time and patience. Coaches need to be committed for the long term to be able to see results. Practicing a number of coaching techniques is recommended for long-term success. Included in the recommended set are those shown on the slide. The essence of coaching and leading is to be creative and to look for positives. It may take a long time to observe successes, but a steady course can be very rewarding to both the coach and the pupil.

Servant Leadership

The servant leader

Emphasizes employee growth and service to others as worthwhile ends in and of themselves

Places other’s needs in front of their own

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Should a leader be served by his or her followers? In 1977, Robert Greenleaf proposed the opposite. He wrote that a leader should be driven by a desire to serve, helping those who have a legitimate need regardless of their status and without an expectation of a reciprocal obligation. Greenleaf proposed that the leader should be a servant. While this desire to serve is the central characteristic of servant leadership, the approach is typically thought to also include leader humility, treating others as equals in relationships, and the application of high moral values. This form of leadership is associated with helping workers see themselves as whole and living purposeful lives.

Multicultural Leadership

A leader’s personality, efforts, or style may conflict with the context of the environment

Bass found that leadership attributes linked with effective leadership vary across cultures

Employees who rank high on power distance prefer an autocratic leader

Employees low in power distance prefer a participative style of leadership

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As each theory or approach to leadership is presented, perhaps it is necessary to ask: To what extent do particular leadership (influence) styles vary around the world? The leader’s role is performed in a context (e.g., political, cultural). A leader’s personality, efforts, or style may emerge from or be in conflict with the context. A leader in a specific national culture may need to apply various attitudes and behaviors to exercise the right blend of influence to accomplish relevant goal achievement. The leadership needed to be effective cannot be generalized in a global context.

Factors Linked to Multicultural Leadership Effectiveness

Preferred awareness

Actual awareness

Submissiveness to rules and authority

Reliance on others

Favoring of group decision making

Concern for human relations

Cooperative peer relations

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The effective multicultural leader in different global settings apparently needs various leadership skills that are not always so obvious. In cross-cultural studies of managers, Bass identified seven factors linked to leadership effectiveness as shown on the slide.

The skills and other competencies of the leader, however, comprise only one variable in the leadership context. Other factors to consider include the subordinates, the peers, the superiors, the task, and the task environment. Leadership in a multicultural situation, whether the management of a joint venture, a diverse work group in the United States, or a subsidiary abroad, poses many challenging tasks.

Assignment 7

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