Management and Organizational Behavior

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5-1

Essentials of

Organizational Behavior

13e

Stephen P. Robbins & Timothy A. Judge

Chapter 5

Personality and Values

Chapter 12

Leadership

After studying this chapter you should be able to:

Contrast leadership and management.

Summarize the conclusions of trait theories of leadership.

Identify the central tenets and main limitations of behavioral theories.

Assess contingency theories of leadership by their level of support.

Compare charismatic and transformational leadership.

Describe the roles of ethics and trust in authentic leadership.

Demonstrate the role mentoring plays in our understanding of leadership.

Address challenges to the effectiveness of leadership.

Describe how organizations can find or create effective leaders.

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What Is Leadership?

Leadership: The ability to influence a group toward the achievement of a vision or a set of goals

Formal or non-sanctioned

Not all leaders are managers

Not all managers are leaders

Successful organizations have strong leadership and strong management

Leaders inspire and create vision

Managers create plans and oversee day-to-day operations

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Leadership is the ability to influence a group toward the achievement of goals. A leader does not have to be someone who holds a formal position or title. Leaders can emerge from a group and provide vision and motivation to those around them. They are critical in helping people cope with change by establishing direction that relates to the vision. In order to achieve the vision they align resources and inspire workers to work toward organizational goals.

Management deals with the complexity of the organization and works with planning, organizing, leading, and controlling to bring about order and consistency in the organization.

Even though the two roles have different areas of focus, both are necessary for organizational success.

Trait Theories

Trait theories of leadership: focus on personal qualities and characteristics

Big Five Personality Framework

Extraversion has strongest relation to leadership

Conscientiousness and Openness to Experience also strongly related to leadership

Agreeableness and Emotional Stability are not correlated with leadership

Emotional Intelligence is correlated with leadership; however, this link is under-investigated

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The trait theory of leadership looks at personality, social, physical, or intellectual traits that differentiate leaders from non-leaders. Initially this theory was based on studies that looked at over 80 different traits, which allowed almost anything to be defined as leadership. A breakthrough occurred when researchers began to organize the traits into categories, and this became known as the Big Five Personality Framework where five groups of traits were found to be consistently present among leaders.

Some essential leadership traits include extraversion, conscientiousness, openness , agreeableness, and emotional intelligence (EI), although the link between EI and leadership has not been fully explored.

With the many years of research dedicated to the trait theory of leadership, it is widely accepted that traits do predict leadership. However, it is more likely that they predict the emergence of a leader rather than the effectiveness of a leader.

Trait Theories

Two conclusions:

Traits can predict leadership

Traits do a better job predicting the emergence of leaders and the appearance of leadership than distinguishing between effective and ineffective leaders

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The fact that an individual exhibits the right traits and that others consider him a leader does not necessarily mean he will be an effective leader, successful at getting the group to achieve its goals.

Behavioral Theories

Behavioral theories of leadership: we can determine leadership effectiveness by leader behavior, and perhaps train people to be leaders

Behaviors can be taught – traits cannot

Leaders are trained – not born

Two key studies of leadership

The Ohio State Studies

The University of Michigan Studies

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The behavioral theories of leadership focus on the premise that behaviors can be taught and traits cannot, so leaders are trained, not born.

Ohio State Studies

Attempts to organize work, work relationships, and goals

Concern for followers’ comfort, well-being, status, and satisfaction

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Two key studies in the area of behavioral leadership advanced our understanding of the theory. The first was done at Ohio State University. Researchers looked at important dimensions of leadership behavior and began with over 1000 dimensions. In the end, the Ohio State studies were able to narrow it down to two dimensions – initiating structure and consideration.

Initiating structure is when the leader is able to define and structure their role and that of their employees to work toward the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader.

Initiating Structure

Consideration

University of Michigan Studies

Emphasize the technical or task aspects of the job: people are means to an end

Emphasize interpersonal relations and accept individual differences

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The University of Michigan Studies identified two key dimensions of leadership behavior as well. They are similar in nature to the Ohio State findings. However, the University of Michigan studies classified these behaviors as employee-oriented, which looks at the interpersonal relationships between the leader and their followers; and production-oriented, which focuses on the technical aspect of the job. Again, both are important for successful leadership.

Production

Oriented

Employee

Oriented

Global Implications

GLOBE Leadership Project Results:

Brazil – Leaders are participative and humane

France – Leaders are bureaucratic, task oriented, and autocratic

China - Initiating structure and consideration important: status differences but participation valued

Charisma and transformational leadership important in all

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The GLOBE study suggests that there are differences across cultures in preference for initiating structure and consideration.

Contingency Theories

Fiedler leadership model: Effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control

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In this theory Fielder is trying to match the leader to the context. He proposes that leadership style is fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit that style, you need to change leaders. This leadership style can be determined by taking the LPC questionnaire (least preferred co-worker).

After the leadership style is determined, you can match the leader to the situation. There are three dimensions to find a successful match. The first situational factor is the leader-member relationship; this ties back to our behavioral studies by looking at the degree of trust and respect employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards.

In Fiedler’s model you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization.

Fiedler Leadership Model

Least-Preferred Co-worker (LPC) determines leadership style (fixed trait)

Relationship oriented

Task oriented

Match leader’s style with degree of situational control

Leader-member relations

Task structure

Position power

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After the leadership style is determined you can match the leader to the situation. There are three dimensions to find a successful match. The first situational factor is the leader-member relationship; this ties back to our behavioral studies by looking at the degree of trust and respect employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards.

In Fiedler’s model you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization.

Matching Leaders to Situations

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This graph helps to visually determine the situational factors and what type of leader would succeed in this situation. There are eight possible situations in which leaders can find themselves in. By matching their LPC score with these eight different situations a leader can see where they will be most effective. For example, categories four through six would be better suited to relationship-oriented leaders because Fielder proposes that they perform best in moderately favorable situations.

Other Contingency Theories

Situational leadership theory (SLT): successful leadership depends on selecting the right leadership style contingent on the followers’ readiness to accomplish a task

Unable and unwilling

Unable but willing

Able but unwilling

Able and willing

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SLT acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation.

Other Contingency Theories

Path-goal theory: it’s the leader’s job to provide followers with information, support, or other resources necessary to achieve goals

Directive leadership yields greater satisfaction when tasks are ambiguous or stressful

Supportive leadership results in high performance and satisfaction when tasks are structured

Directive leadership is perceived as redundant by employees with high ability or experience

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Effective leaders clarify followers’ paths to their work goals and make the journey easier by reducing roadblocks.

Directive or supportive leadership does matter to followers’ performance, and leaders need to be aware of their important facilitating role.

The effectiveness of leaders depends to a large degree on their followers.

Charismatic Leadership

Charismatic leadership theory: Attributions of heroic leadership abilities when followers observe certain behaviors

Vision and articulation

Personal risk-taking

Sensitivity toward followers

Unconventional behaviors

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Charisma comes from the Greek word meaning gift. When talking about a charismatic leader one will refer to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority.

There are four key characteristics that are associated with a charismatic leader. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process the leader may be engaging in behaviors that are perceived as counter to norms, thereby extraordinary.

Charismatic Leaders: Born or Made?

Charisma is partially attributed to genetics and partially to training and experience

Developing an aura of charisma:

Be optimistic

Be passionately enthusiastic

Commute with body, not just words

Draw others in – inspire others

Tap into emotions – bring out the potential in others

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The charismatic traits are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed.

In reality it is a mix of genetics, training, and experience. Charisma can be created. One way is to develop an aura of charisma by being optimistic, passionately enthusiastic, and to communicate with behaviors and words. A leader can also create charisma by drawing in others through inspiration, as well as by tapping into the emotions of individuals to bring out their potential.

How Charismatic Leaders Influence Followers

Articulate an appealing vision

Communicate a new set of values

Model behaviors for those values

Express dramatic behavior

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Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First, the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next, the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leader’s excitement and commitment to the goal.

Next, the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They will choose behaviors that will help followers “catch” the emotions the leader is conveying and help achieve buy-in of the followers.

Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision to help the followers “catch” the vision.

Charisma and Situational Dependency

Charisma is strongly correlated to high performance and satisfaction

Best used when

Environment is uncertain or stressful

Ideology is involved

Most closely associated with upper-level executives

People are most receptive to charisma when there is a crisis

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Charismatic leaders have been shown to be effective but it often depends on the context. This leadership style works best in an environment where it is uncertain, stressful, and where there is some ideology involved.

It is more closely associated with upper-level executives and people are most receptive to charismatic actions when there is a crisis.

The Potential Dark Side of Charismatic Leadership

Some leaders:

Use organizational resources for personal benefit

Remake companies in their own image

Allow self-interest and personal goals to override organization’s goals

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There is a dark side to charismatic leadership if the leader misuses their skill set. In the past we have seen situations where leaders have abused the company resources and used them for their own benefit. Some leaders with strong charisma have remade the companies in their own image and left no plans for succession when they leave.

In many cases the charismatic leader lets their own goals override those of the organization, thus creating a negative situation for the organization.

Transformational Leadership

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Transactional leaders motivate their follower towards the goals set by clarifying their roles in the process and what they need to do to reach the goals set.

Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside.

These two approaches are not contradictory in nature; in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.

Idealized Influence

Role models of

Inspirational Motivation

Provide meaning & challenge

Individualized Consideration

Serve as a coach, guide, or mentor

Intellectual Stimulation

Encourage followers to use creativity and innovation

Involve followers in developing shared vision

Inspire optimism & enthusiasm

Articulate very clear expectations & goals

Trust

Respect

Unselfishness

Integrity

Morality

Ethics

Consistent behavior

Foster a supportive climate for personal growth and professional development

Stimulate intellectual capacity of followers

Challenge assumptions

Reframe questions

Approach problems in unusual ways

Transformational Leadership

Transactional leaders:

Motivate their followers in the direction of established goals by clarifying role and task requirements

Transformational leaders:

Inspire followers to transcend their own self-interests for the good of the organization

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Transactional leaders motivate their follower towards the goals set by clarifying their roles in the process and what they need to do to reach the goals set.

Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside.

Full Range of Leadership Model

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This exhibit shows the full range of the leadership model. The first four behaviors represent transactional approaches and begins with the Laissez-Faire approach, which is the most passive. As a leader progresses on the scale, she moves toward more active behaviors. The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors, they become more effective.

Evaluation Of Transformational Leadership

Transformational leadership:

Is effectively used in various job levels and disparate occupations

Tends to be more effective in smaller companies

Works better when the leader directly interacts with followers

Can be learned

Transformational leaders:

Are creative and inspire creativity

Create a “can-do” spirit

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Transformational leadership works in a variety of contexts but tends to be more effective in smaller companies. It does work better when the leader is more closely connected to the followers and can understand their situation. The link between transformational leadership and positive job outcomes is solid.

Global Implications

The GLOBE study found that many elements of transformational leadership are universal

Vision is important in any culture, but how it is formed and communicated may need to vary by culture

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The GLOBE study links elements of transformational leadership with effective leadership, regardless of country. According to the study, various elements of transformational leadership, including vision, foresight, providing encouragement, trustworthiness, dynamism, positiveness, and proactiveness are universal. However, how vision is formed and communicated can differ across cultures.

Transformational vs. Transactional Leadership

Transformational leadership is more strongly correlated with:

Lower turnover

Higher productivity

Lower employee stress and burnout

Higher employee satisfaction

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Research shows that transformational leadership results in many desirable outcomes. However, contingent reward leadership sometimes works as well as transformational leadership.

There are a lot of commonalities between transformational leadership and charismatic leadership, but in general, charismatic leadership focuses on how leaders communicate while transformational leadership focuses on what is communicated.

Authentic Leadership: Ethics and Trust

Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly

Create trust

Encourage open communication

People have faith in them

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Authentic leadership is a growing area of research. There are several components that need to be addressed when discussing authenticity in leadership. First we must look at authentic leaders. These are leaders who engage in reflection and understand who they are and what they believe, and bring those two aspects together in their actions.

Next, authentic leaders are able to create trust with their followers, and encourage a culture of open communication. These factors will help to create an authentic leader that people will follow.

Ethics and Leadership

Ethics and leadership intersect at many junctures

Executives set the moral tone for an organization so they must set and adhere to high ethical values

Leadership is not value free, and the means by which a leader achieves their goal must be framed by ethics

Socialized charismatic leadership: leadership that conveys other-centered values by leaders who model ethical conduct

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There is a strong intersection of ethics and leadership. Over the past several years we have been involved in what many have called an ethical crisis in the business community. When we look at leadership, we need to look at more than the results of the leader. We must also look at the steps the leader took to achieve those results.

Servant Leadership

Servant Leaders: Go beyond their own self-interest and focus on opportunities to help followers grow and develop

Emphasize persuasion

Effects of servant leadership:

Higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice

Increased team potency and higher group performance

Higher levels of creative performance

Servant leadership may be more effective in certain cultures

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Servant leaders don’t use power to achieve their goal; instead they focus on persuading followers. The effects of servant leadership include higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice, all of which are related to organizational citizenship behavior. Servant leaders increase team potency, which leads to higher levels of group performance, and also a greater focus on growth and advancement which leads to higher levels of creative performance.

This type of leadership may be more prevalent in East Asian cultures.

Trust

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Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years this has been found to be a foundational characteristic of leadership. When trust is present followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one that does not hold their trust.

Trust is developed over time. The interactions between the leaders and the followers are part of the development of trust; it goes both ways. Research has shown that the three main characteristics of a leader that instill trust are integrity, ability, and benevolence.

These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders, it will encourage positive behaviors such as risk taking, information sharing, group interactions, and productivity.

Trust

Taking Risks

Information Sharing

Effective Groups

Enhanced Productivity

Leadership For The Future

Mentor: a senior employee who sponsors and supports a less-experienced employee, a protégé

Mentoring programs benefit both mentors and protégés

But, informal mentoring is more effective than formal mentoring

Benefits of mentoring are primarily psychological

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Successful mentors are good teachers. They present ideas clearly, listen well, and empathize with protégés’ problems. Mentoring relationships, whether formal or informal, serve career functions and psychosocial functions.

Challenges to the Leadership Construct

Attribution Theory of Leadership

Performance outcomes are attributed to leaders’ actions

Appearance has more to do with leadership than outcomes

Substitutes and Neutralizers

Organizational variables can neutralize the leader’s influence or act as substitutes for leadership

Leader becomes irrelevant

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There are many challenges to understanding leadership. The attribution theory states that it is hard to attribute outcomes to leadership and that often, leadership is more about performance than outcomes.

In addition, you can have an extremely effective leader but organizational variables can neutralize the leader’s ability to lead and create change, thus rendering the leader as irrelevant.

Substitutes for and Neutralizers of Leadership

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Neutralizers make it impossible for leader behavior to make any differences to follower outcomes.

Finding and Creating Effective Leaders

Selecting Leaders

Review knowledge, skills, and abilities needed

Use personality tests

Consider situation-specific experience

Training Leaders

Maximize leadership-training budget

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How can managers get the most from their leadership-training budgets?

Leadership training is likely to be more successful with high-self monitors.

Organizations can teach implementation skills.

We can teach skills such as trust building and mentoring.

Behavioral training through modeling exercises can increase an individual’s ability to exhibit charismatic leadership qualities.

Leaders should engage in regularly reviewing their leadership after key organizational events.

Leaders can be trained in transformational leadership skills that have bottom-line results.

Implications for Managers

For maximum leadership effectiveness, ensure that your preferences on the initiating structure and consideration dimensions are a match for your work dynamics and culture.

Hire candidates who exhibit transformational leadership qualities and who have demonstrated success in working through others to meet a long-term vision.

For management role, hire candidates whom you believe are ethical and trustworthy; and train managers in your organization’s ethical standards.

Seek to develop trusting relationships with followers.

Consider investing in leadership training.

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Leadership is a complex function in an organization but essential for success. Individuals, groups, and organizations all need leaders and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective.

Keep in Mind…

Leaders can influence a group toward the achievement of goals

The best leaders are ethical and authentic in addition to being charismatic

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It is important to keep in mind that leaders do influence behavior and they can do so in a way that increases achievement of goals.

The best leaders are ethical and authentic, although charisma is valued and coupled with vision, it can be effective in most environments.

Summary

Contrasted leadership and management.

Summarized the conclusions of trait theories of leadership.

Identified the central tenets and main limitations of behavioral theories.

Assessed contingency theories of leadership by their level of support.

Compared charismatic leadership and transformational leadership.

Described the roles of ethics and trust in authentic leadership.

Demonstrated the role mentoring plays in our understanding of leadership.

Addressed challenges to the effectiveness of leadership.

Described how organizations can find or create effective leaders.

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