Leadership in Organizations

LECTURE
Leadership in Organizations
CHAPTER LEARNING OBJ ECTIVES
• After studying this chapter, you should be able to:

• Define leadership and 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 and contrast charismatic and transformational leadership.
• Define authentic leadership and show why effective leaders exemplify ethics and
trust.
• Demonstrate the role mentoring plays in our understanding of leadership.
• Address challenges to the effectiveness of leadership.
• Assess whether charismatic and transformational leadership generalize across
cultures.
WHAT IS LEADERSHIP?
• Leadership
• The ability to influence a group toward the
achievement of goals
• Management
• Use of authority inherent in designated formal rank
to obtain compliance from organizational members
• Both are necessary for organizational success
TRAIT THEORIES OF LEADERSHIP
• Theories that consider personality, social, physical, or intellectual traits to

differentiate leaders from non-leaders
• Not very useful until matched with the Big Five Personality Framework
• Essential Leadership Traits
• Extroversion ….assert themselves
• Conscientiousness…..more disciplined
• Openness to experience…..willing to take risks
• Emotional stability
• Agreeableness
• Traits can predict leadership, but they are better at predicting leader emergence
than effectiveness.
EMOTIONAL INTELLIGENCE
• A core component of EI is empathy

• People high in EI are more likely to emerge as leaders
BEHAVIORAL THEORIES OF
LEADERSHIP
• Theories proposing that specific behaviors differentiate leaders

from nonleaders
• Differences between theories of leadership:
• Trait theory: leadership is inherent, so we must identify the
leader based on his or her traits
• Behavioral theory: leadership is a skill set and can be taught to
anyone, so we must identify the proper behaviors to teach
potential leaders
• Ohio studies found two behaviors that accounted for most leadership behavior
• Initiating Structure
• Assigning tasks, setting standards, providing deadlines
• Consideration
• Trust, respect, caring
CONTINGENCY THEORIES
• While trait and behavior theories do help us understand leadership, an

important component is missing: the environment in which the leader
exists
• Contingency Theory adds this additional aspect to our understanding

leadership effectiveness studies
• Three key theories:

• Fiedler’s Model
• Hersey and Blanchard’s Situational Leadership Theory
• Path-Goal Theory
FIEDLER MODEL
• Effective group performance depends on the proper match between leadership style
and the degree to which the situation gives the leader control.
• Assumes that leadership style (based on orientation revealed in LPC (least
preferred co worker questionnaire) is fixed
• High score……relationship oriented
• Low score……..task oriented
• Considers Three Situational Factors:
• Leader-member relations: degree of confidence and trust in the leader (most imp)
• Task structure: degree of structure in the jobs
• Position power: leader’s ability to hire, fire, and reward
• For effective leadership: must change to a leader who fits the situation or change
the situational variables to fit the current leader
GRAPHIC REPRESENTATION OF
FIEDLER’S MODEL
FIEDLER’S COGNITIVE RESOURCE THEORY
• A refinement of Fiedler’s original model:

• Focuses on stress as the enemy of rationality and creator of
unfavorable conditions
• A leader’s intelligence and experience influence his or her
reaction to that stress
• Research is supporting the theory.
Intellectual Leader’s
Stress Level
Abilities Experience
• Low • Effective • Ineffective
• High • Ineffective • Effective
ASSESSMENT OF FIEDLER’S MODEL
• Positives:
• Considerable evidence supports the model, especially if the
original eight situations are grouped into three
 Problems:
– The logic behind the LPC
scale is not well understood
– LPC scores are not stable
– Contingency variables are
complex and hard to
determine
SITUATIONAL LEADERSHIP THEORY
• A model that focuses on follower “readiness”

• Followers can accept or reject the leader
• Effectiveness depends on the followers’ response to the
leader’s actions
• “Readiness” is the extent to which people have the ability and
willingness to accomplish a specific task
Ability to follow Willingness to Follow Leadership Behavior
Unable Unwilling Give clear and specific directions
Unable Willing Display high task orientation
Able Unwilling Use a supportive and participatory style
Able Willing Doesn’t need to do much

HOUSE’S PATH-GOAL THEORY
• Builds from the expectancy theory of motivation

• The Theory:
• Leaders provide followers with information, support, and resources to
help them achieve their goals
• Leaders help clarify the “path” to the worker’s goals
• Leaders can display multiple leadership types
• Four types of leaders:
• Directive: focuses on the work to be done
• Supportive: focuses on the well-being of the worker
• Participative: consults with employees in decision making
• Achievement-Oriented: sets challenging goals
LEADER-MEMBER EXCHANGE (LMX)
THEORY
In Groups
Out Groups
• Members are similar to • Managed by formal rules
leader and policies
• In the leader’s inner circle • Receive less of the
of communication leader’s attention / fewer
• Receives more time and exchanges
attention from leader • More likely to retaliate
• Gives greater against the organization
responsibility and rewards
CHARISMATIC LEADERSHIP
• Charisma means gift in Greek
Unconventional Vision
Behavior
Sensitivity to
Personal Risk
Followers
CHARISMATIC LEADERSHIP
How do charismatic leaders influence followers?
Create a
Articulate a Create a new Demonstrate
Vision
Vision set of Values the Vision
Statement
TRANSFORMATIONAL LEADERS
• Inspire followers to transcend their self-interests for the good of the

organization
• Contingent Reward
• Management by Exception (active)
• Management by Exception (passive)
Transactional • Laissez-Faire
• Idealized Influence
• Inspirational Motivation
Transformational • Intellectual Stimulation
• Individualized Consideration
LEADERSHIP MODEL
Transaction Approaches Transformational Approaches

• Laissez-Faire…avoid making • Individualized Consideration…
decisions, disengaged giving personal attention
• Management by Exception • Intellectual Stimulation…rationality,
• Active…if there is a problem we will careful problem solving
address, if there is no, we will not • Inspirational Motivation…
address communicating our purpose,
• Contingent Reward…can we have expectations
your project done by Friday ? • Idealized Influence…providing
mission and vision
Authentic Leaders
• Authentic leaders know who they are,
what they believe in and value, and act
upon those values and beliefs.
Ethics and Leadership
• Leadership is not free from values.
When we assess leadership, we must
assess not just the goals themselves but
also the means by which those goals
are achieved. 12-
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 21
TRUST AND LEADERSHIP
• Trust – a psychological 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.
• Key attribute associated with leadership
• Followers who trust their leader will align their actions
and attitudes with the leader’s behaviors/requests
Trust Desired
Actions
Desired
Attitudes
HOW IS TRUST DEVELOPED?
Trust Action: Risk Taking,

Information Sharing,
Group Effectiveness, and
Productivity
Leadership
Action:
Integrity,
Benevolence,
Ability
MENTORING – LEADING FOR THE FUTURE
• Mentor: A senior employee who supports a less experienced

employee.
Psychological
Career Functions
Functions
Helping the protégé gain skills and Counseling the protégé to bolster
abilities his/her confidence
Lobbying for the protégé to get better Sharing personal experiences with the
assignments protégé
Providing exposure to influential
Providing friendship and acceptance
individuals in the organization
Acting as a sounding board for ideas Acting as a role model

FINDING AND CREATING EFFECTIVE
LEADERS
Selecting Leaders…personality tests,

traits, situation specific experience
Training Leaders….high self monitors,

teach implementation skills, trust building,
mentoring and situational analysis,
increase an individuals charismatic
leadership qualities
Global Implications
• These leadership theories are primarily studied in English-speaking

countries
• Brazilian teams prefer leaders who are high in consideration,
participative, and have high LPC scores
• French workers want a leader who is high on initiating structure and
task-oriented
• Egyptian employees value team-oriented, participative leadership,
while keeping a high-power distance
• Chinese workers may favor a moderately participative style
• Leaders should take culture into account
Summary and Managerial Implications
• Leadership is central to understanding group behavior as the leader provides the direction.
• Extroversion, conscientiousness, and openness all show consistent relationships to leadership.
• Behavioral approaches have narrowed leadership down into two usable dimensions.
• Need to take into account the situational variables, especially the impact of followers.
• Research on charismatic and transformational leadership has made major contributions to our
understanding of leadership.
• Leaders must be seen as authentic and trustworthy.
• Investment must be made in the future through mentoring and training leaders.
ASSIGNMENT
• 1 What are the conclusions of trait theories of leadership?

• 2 Explain the Leader Member Exchange theory and how it can lead to
leadership effectiveness?
• 3 How can leaders have a positive impact on their organizations through
building trust and mentoring?

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LECTURE

• After studying this chapter, you should be able to:

• Theories that consider personality, social, physical, or intellectual traits to

• A core component of EI is empathy

• Theories proposing that specific behaviors differentiate leaders

• While trait and behavior theories do help us understand leadership, an

• Contingency Theory adds this additional aspect to our understanding

• Three key theories:

• A refinement of Fiedler’s original model:

• A model that focuses on follower “readiness”

Unable Willing Display high task orientation

Able Unwilling Use a supportive and participatory style

Able Willing Doesn’t need to do much

• Builds from the expectancy theory of motivation

• Charisma means gift in Greek

How do charismatic leaders influence followers?

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

Transaction Approaches Transformational Approaches

• Trust – a psychological state that exists when you agree to

Trust Action: Risk Taking,

• Mentor: A senior employee who supports a less experienced

Acting as a sounding board for ideas Acting as a role model

Selecting Leaders…personality tests,

Training Leaders….high self monitors,

• These leadership theories are primarily studied in English-speaking

• Extroversion, conscientiousness, and openness all show consistent relationships to leadership.

• Leaders must be seen as authentic and trustworthy.

• 1 What are the conclusions of trait theories of leadership?

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