Tying Concepts Together

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Chapter 6: Leadership

Have Leaders Lost Their Followers’ Trust?

Richard Edelman’s 2019 global survey

14-point decline in global trust in 2019

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

Richard Edelman’s 2019 global survey on which people and institutions we trust and how much we trust them:

Overall, 2019 saw a 14-point decline in global trust.

When employers meet employee expectations, it builds resilient trust.

There is a “trust gap” in that many employees don’t trust their leaders to do the right thing.

What is Leadership? (1 of 7)

Leadership definition

Confusion in literature

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

Leadership: According to Yukl, the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives.

Confusion in the literature between leadership and other terms like management.

What is Leadership? (2 of 7)

Differentiating Management and Leadership

Qualities of managers vs. leaders

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

Differentiating Management and Leadership

Managers vs. leaders, according to Warren Bennis:

Administration vs. innovation

A copy vs. an original

Maintaining vs. developing

Systems & structure-focused vs. people-focused

Relies on control vs. inspires trust

Short-range view vs. long-range perspective

Asks how & when vs. asking what & why

Eye on the bottom line vs. eye on the horizon

Imitation vs. origination

Accepts status quo vs. challenging status quo

The classic good soldier vs. being one’s own person

Doing things right vs. doing the right thing

What is Leadership? (3 of 7)

Managerial Leadership

Both managers and leaders are needed

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

Managerial Leadership

Both managers and leaders are needed for optimal organizational performance.

To some extent, the two roles overlap.

What is Leadership? (4 of 7)

The Trait Approach

Definition

Was dismissed by OB researchers

Resurgence with traits that matter

The role of extraversion

Screening by personality traits

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

The Trait Approach

Trait approach: A theory of leadership that believes that leaders are born with the talent and abilities for leadership.

Contrasts with most other leadership theories, which propose that leadership can be learned

Suggests the best way to ensure effective leadership is to select the right people in the first place rather than train them

Were largely dismissed by OB researchers when they didn’t find reliable differences between leaders and followers

Caused a shift towards behavioral approaches

Interest in trait approach experienced a resurgence when a review found that the following traits do matter for leadership:

Drive

Leadership motivation

Honesty

Integrity

Self-confidence and emotional stability

Cognitive ability

Knowledge of the business

Recent research suggests extraversion has an effect on leadership emergence and effectiveness.

Personality traits can be used to screen individuals for hiring and professional development.

What is Leadership? (5 of 7)

Limitations of the Trait Approach

Partial explanation of leadership

The behavioral approach assumption

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

Limitations of the Trait Approach

A partial explanation of leadership

Behavioral approach assumes that leaders are made and not born.

This means anyone can learn the behaviors of an effective leader.

What is Leadership? (6 of 7)

Leader Behaviors

Over 1,000 behaviors identified in a study

Consideration is related to:

Follower satisfaction

Motivation

Leader effectiveness

Initiating structure is related to:

Leader job performance

Group performance

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

Leader Behaviors

A study asked followers to describe what their leaders did and created a list of over 1,000 leader behaviors. Statistical analyses were able to reduce this down to two categories:

Initiating structure: Defining tasks for employees and focusing on goals.

Consideration: The degree to which the leader shows trust, respect, and sensitivity to employees’ feelings.

Consideration is strongly related to:

Follower satisfaction (with both the leader and the job)

Motivation

Leader effectiveness

Initiating structure has a somewhat stronger relation to:

Leader job performance

Group performance

What is Leadership? (7 of 7)

Leader Behaviors

Six behaviors

Task-oriented behaviors

Relation-oriented behaviors

Which leader behavior is most effective?

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-1 Define leadership and explain the difference between being a manager and being a leader.

Leader Behaviors

Recently expanded to include six behaviors.

Three task-oriented behaviors:

Enhancing understanding

Strengthening motivation

Facilitating implementation

Three relation-oriented behaviors:

Fostering coordination

Promoting cooperation

Activating resources

Which leader behavior is most effective?

Behavioral flexibility

Engaging in the right behavior at the right time

Contingency/situational approaches: Leaders must change their behaviors based on how able and willing followers are.

Path–Goal Theory (1 of 9)

Path–goal theory (PGT) definition

A situational theory of leadership

Leaders increase quality and number of payoffs

Leaders clear the path to goals

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-2 Demonstrate the role of leaders in the motivation process using path–goal theory (PGT).

Path-goal theory (PGT): The role of leaders is to motivate followers to accomplish goals by establishing the paths to those goals.

A situational theory of leadership.

Leaders increase the quality and number of payoffs from reaching goals.

Leaders make the path to the goals clear by removing obstacles.

Path–Goal Theory (2 of 9)

Motivational Leadership Behaviors

Four leadership behaviors motivate employees

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-2 Demonstrate the role of leaders in the motivation process using path–goal theory (PGT).

Motivational Leadership Behaviors

Path-goal theory specifies four leadership behaviors that motivate employees:

Directive leadership: Giving followers specific instructions about their tasks, providing deadlines, setting standards for performance, and explaining rules.

Supportive leadership: Showing consideration, being friendly and approachable, and paying attention to the well-being of followers.

Participative leadership: Allowing followers to have a voice in decisions that affect them, sharing information, inviting followers’ ideas and opinions.

Achievement-oriented leadership: Challenging followers to perform at high levels, setting standards for excellence, showing confidence in followers’ ability to reach goals.

Path–Goal Theory (3 of 9)

Adapting to the Situation

Leader learns of obstacles and helps by removing them

Another consideration: follower ability

Criticisms

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-2 Demonstrate the role of leaders in the motivation process using path–goal theory (PGT).

Adapting to the Situation

The leader learns of obstacles the follower faces and helps by removing them.

For example, if an employee is waiting on a report from another department, the leader can help by calling the department and requesting that the report be expedited.

Another consideration: follower ability.

Leader must adjust expectations to match a person’s ability to complete a task.

Leaders may need to clarify the task.

Criticisms: Model assumes that leaders treat all followers the same, while research finds this is not true.

Leaders develop unique relationships with each of their followers.

Path–Goal Theory (4 of 9)

Leader–Member Exchange

Definition

Leaders rapidly decide on group members

Fairness must pervade the entire process

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-3 Illustrate the leader–member exchange (LMX) model with an example.

Leader-Member Exchange

Leader–member exchange (LMX): The quality of the working relationship developed with each follower, characterized by more delegation of authority to those with high-quality LMX.

In-group members: Members who take on extra work and go above and beyond their job specifications.

Out-group members: Members who perform just to the specifications in their job descriptions.

Poor performers are best classified as a third category, one who is not meeting their job expectations adequately.

Leaders rapidly decide on in-group and out-group members.

Fairness must pervade the entire process to avoid negative effects on the entire work team’s performance.

Path–Goal Theory (5 of 9)

Inclusive Leadership

Definition

Leveraging team member uniqueness increases performance

Facilitating belongingness

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-3 Illustrate the leader–member exchange (LMX) model with an example.

Inclusive Leadership

Inclusive leadership: Leaders should help all team members feel part of the group (belongingness) while retaining their sense of individuality (uniqueness) so they contribute to the team atmosphere.

Benefits diverse teams through attention to the uniqueness of women and minorities, while valuing the attributes, perspectives, and contributions of each member.

Leveraging team member uniqueness increases performance.

Facilitating belongingness includes:

Valuing each member

Ensuring fairness

Sharing decisions with followers

Path–Goal Theory (6 of 9)

Leader–Member Exchange Development

Three-step process

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-3 Illustrate the leader–member exchange (LMX) model with an example.

Leader–Member Exchange Development

Three-step process:

Role-taking: boss tests the commitment of the follower by offering extra work.

Role-making: mutual expectations of the working relationship are established, and the follower’s role is made clearer.

Role routinization: roles become stable as the leader and follower both know what to expect.

Path–Goal Theory (7 of 9)

Followership

Definition

Interest has increased over past 20 years

Followers are partners with leadership

Benefits of coproduction

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-3 Illustrate the leader–member exchange (LMX) model with an example.

Followership

Followership: The behaviors a person engages in while interacting with leaders to meet organizational objectives.

May have evolved as a way to address coordination problems in social groups, such as the complexities of hunting and gathering.

Some did not have the physical or psychological strength to be leaders and thus tended to become followers.

Interest in followership has increased over the past 20 years.

Followers are viewed as partners with leadership, which is consistent with the LMX model.

Role of the follower is a “coproduction orientation,” meaning followers should actively engage with leaders to work toward shared goals.

Benefits of coproduction:

More follower support.

More motivation.

More contributions from followers (followers have a voice in decisions.)

Contrasts with “passive orientation,” or the belief that followers should defer to and follow directions from the leader.

Path–Goal Theory (8 of 9)

Attributions and Leader–Member Relationships

Attribution definition

Attribution theory

Attributions and significance in organizations

Leaders can reach more accurate conclusions

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-3 Illustrate the leader–member exchange (LMX) model with an example.

Attributions and Leader–Member Relationships

Attribution: A person’s attempt to assign a cause to a behavior or event they observe.

Attribution theory: Proposes that the attributions people make about events and behavior can be either internal or external.

Internal attribution: When people infer that an event or a person’s behavior is due to character traits or abilities.

External attribution: When people believe that a person’s behavior is caused by situational factors.

In organizations, attributions are particularly significant when events are:

Important

Novel

Unexpected

Negative

Leaders can reach more accurate conclusions by considering the following factors:

Consensus information: Information about how other people would behave if they were in the same situation. High consensus means many others would behave the same way, while low consensus suggests most others would behave differently.

Distinctiveness information: Information about the extent to which the individual behaves the same way in different situations. Low distinctiveness suggests an individual behaves the same way in different situations, while high distinctiveness means the individual has a particular reaction to a particular situation.

Consistency information: Information about how the individual behaves toward a certain stimulus across time and circumstances. High consistency suggests the same behaviors occur almost every time a particular situation occurs.

Path–Goal Theory (9 of 9)

The Mentor Connection

Mentoring definition

A mentor relationship with a boss

Types of support from mentors

Mentoring relationships can become transformative

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-3 Illustrate the leader–member exchange (LMX) model with an example.

The Mentor Connection

Mentoring: An intense developmental relationship whereby advice, counseling, and developmental opportunities are provided to a protégé by a mentor, which, in turn, shapes the protégé’s career experiences.

A mentor relationship with a boss often results in:

Higher performance

Promotions

Salary increases

In some cases, a promoted boss may bring a mentee or other trusted in-group member with them.

Mentors provide two main types of support to protégés:

Career support

Social support

Mentors may also serve as role models

Mentoring relationships can become transformative and are characterized by a willingness to be vulnerable and trust one another.

The Importance of Trust (1 of 6)

Trust is the willingness to be vulnerable

Related to risk-taking and job performance

Fundamental to development of effective working relationships

A three-part view of trust

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-4 Explain why trust is important and how to repair it.

Trust is the willingness to be vulnerable.

Related to important outcomes like risk-taking and job performance

Fundamental to the development of effective working relationships with bosses and others

A three-part view of trust involves calculus-based, knowledge-based, and identification-based trust.

The Importance of Trust (2 of 6)

Calculus-Based Trust

Definition

Knowledge-Based Trust

Definition

Based on information in variety of circumstances

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-4 Explain why trust is important and how to repair it.

Calculus-Based Trust

Calculus-based trust (CBT): A form of trust based upon keeping records of what another person does for you and what you do for them.

An “arm’s length” form of trust which minimizes vulnerability for each party

For example, a leader telling a follower to perform a task because they are paid to do the items in their job description, which may imply a firing if they fail to perform the task.

Knowledge-Based Trust

Knowledge-based trust (KBT): Trust grounded in how predictable the other person is.

Based upon information gathered about the other person in a variety of circumstances.

For example, becoming the boss’s “go-to” person for a certain task.

The Importance of Trust (3 of 6)

Identification-Based Trust

Definition

No need for record-keeping

Efficient for the leader

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-4 Explain why trust is important and how to repair it.

Identification-Based Trust

Identification-based trust (IBT): the highest degree of trust, characterized by the leader and follower sharing the same goals and objectives.

No need for record-keeping; the predictability of the follower’s behavior is assumed.

Highly efficient for the leader: followers take care of details while the leader focuses on the strategic vision or negotiating group resources.

The Importance of Trust (4 of 6)

Identification-Based Trust

Development of trust is “tactical climbing”

Can revert to earlier stages

Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.

6-4 Explain why trust is important and how to repair it.

Identification-Based Trust

Development of trust is “tactical climbing:”

Increasing levels of risk and vulnerability over time.

Cues perceived early in employment predict the emergence of trust.

Even the first hours are crucial.

Trust can revert to earlier stages, so it’s important to maintain relationships.

The Importance of Trust (5 of 6)

Repairing Broken Trust

Three questions to ask

If a trustee is innocent

If a trustee is guilty

6-4 Explain why trust is important and how to repair it.

Repairing Broken Trust

Three questions to ask after a trustee has violated a trustor’s trust:

Is the trustee innocent or guilty?

If guilty, should this be attributed to the situation or person?

If attributed to the person, is the shortcoming fixable or an enduring characteristic?

If a trustee is innocent, they should:

Emphasize lack of guilt

Deny the transgression

Offer any available exonerating information

Remaining reticent is risky; people tend to assume the worst

If a trustee is guilty, an apology may be effective. Apologies should:

Be remorseful and repentant

Mention any extenuating factors that played a role

Be seen as adequate to be effective

The Importance of Trust (6 of 6)

Repairing Broken Trust

Excuses may be effective

Honest mistakes

If a lack of integrity is demonstrated

6-4 Explain why trust is important and how to repair it.

Repairing Broken Trust

Excuses may also be effective depending on the person and the relationship.

Reparations (“making it right”) increases the effectiveness of explanations.

Success depends on other contingencies described below.

If the transgression stems from an honest mistake or ignorance, people are more likely to give the benefit of the doubt and trust again.

If the act is seen as demonstrating a lack of integrity, trust is difficult or impossible to repair.

Lying is one of the most damaging behaviors to a relationship.

Even more “substantive” responses like reparation or fines are limited in effectiveness when integrity is questioned.

Full-Range Leadership Development (1 of 2)

People more engaged when leaders behave in certain ways

Transactional Leadership

Definition

Three behaviors

6-5 Compare and contrast the elements of transactional and transformational leadership.

People are more engaged when their leaders behave in certain ways at the highest end of the full-range model.

Transactional Leadership

Transactional leadership: Behaviors that motivate followers through rewards and corrective actions.

The foundation of transformational leadership.

Three behaviors, from least effective to most effective:

Nonleadership/laissez-faire leadership: The “near-avoidance of leadership,” the least active and least effective of all the leadership styles in the full-range model.

Management by exception: This has two forms: active and passive. In management by exception—active (MBE-A), the leader looks for the follower to make errors and then corrects them. In management by exception—passive (MBE-P), the leader does not actively look for errors or deviations from work standards, but when noticed, they take corrective action.

Contingent reward. This is promising or delivering rewards to followers contingent on their performance.

Avolio, B. J. (2011). Full range leadership development (2nd ed.). Sage.

Full-Range Leadership Development (2 of 2)

Transformational Leadership

Definition

Four behaviors (the Four I’s)

Transformational leaders increase intrinsic motivation

6-5 Compare and contrast the elements of transactional and transformational leadership.

Transformational Leadership

Transformational leadership: Behaviors that mobilize extra effort from followers through emphasis on change through articulating a new vision for the organization.

Most related to positive attitudes, commitment, and follower performance.

Four behaviors, known as the Four I’s:

Idealized influence: Being admired and respected by followers is the core of this leadership component. These leaders are seen as change agents in the organization.

Inspirational motivation: Leaders inspire others to work hard toward organizational goals by providing challenge. They are positive and upbeat and get others to feel optimistic.

Intellectual stimulation: Transformational leaders encourage innovation and new ideas. They listen to followers openly and don’t criticize novel solutions to problems.

Individualized consideration. Transformational leaders treat each follower as a unique person. They get to know people one-on-one and mentor them.

Transformational leaders increase intrinsic motivation by aligning followers’ tasks with their own interests and what they value most.

Moral Approaches (1 of 4)

Ethical Leadership

Definition

Four components

6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.

Ethical Leadership

Ethical leadership: A leadership style focused on ethical decision-making.

Leaders today must be authentic and serve followers, not just their own goals.

Ethical leadership has four components:

Moral sensitivity: recognizing our behavior impacts others.

Moral judgment: determining the right decision.

Moral motivation: the need to do the right thing.

Moral action: doing the right thing.

Moral Approaches (2 of 4)

Ethical Leadership

Positive and negative relationships

Ethical leaders lead to positive employee behaviors

Ethical leaders cause cascading effect

6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.

Ethical Leadership

Ethical leadership is positively related to work group-level ethical behavior and negatively related to relationship conflict among coworkers.

If employees indicated that their leaders are ethical and fair role models who communicate and reward ethical behavior, there exists more positive behaviors:

Less deviance

More cooperative behavior

Better performance

Higher effort

More reporting of problems to management

Ethical leaders have a cascading effect down to lower-level employees and management.

Moral Approaches (3 of 4)

Servant and Authentic Leadership

Definition of servant leadership

Seven dimensions

Developmental support is characteristic of servant and humble leadership

6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.

Servant and Authentic Leadership

Servant leadership: Basically, the idea that followers are first rather than leaders.

Seven dimensions of servant leadership:

Emotional healing

Creating value for the community

Conceptual skills

Empowering

Helping subordinates grow and succeed

Putting subordinates first

Behaving ethically

Developmental support is characteristic of both servant leadership and humble leadership.

Moral Approaches (4 of 4)

Servant and Authentic Leadership

Humble leadership definition

Authentic leadership definition

Four dimensions of authentic leadership

6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.

Servant and Authentic Leadership

Humble leadership: where a leader’s humility allows them to show followers how to grow as a result of work.

Leads followers to believe their own developmental journeys are legitimate.

Humility increases cooperation, but may reduce follower perceptions of skill, influence, and autonomy.

Authentic leadership: involves knowing oneself and behaving in a way that is consistent with what is intuitively right.

Authentic leaders are most effective when they develop an effective vision that relates to the shared interests of their team.

Authentic leadership has four dimensions:

Self-awareness: seeks feedback to improve interaction with others.

Relational transparency: says exactly what they mean.

Internalized moral perspective: demonstrates beliefs consistent with actions.

Balanced processing: solicits views that challenge deeply held positions.