CHAPTER SIX

1. CHAPTER SIX EXCHANGE AND RELATIONSHIP DEVELOPMENT AND MANAGEMENT

2. Learning Objectives • Explain the key role of relationship development and management in effective leadership and use the concepts in improving leadership effectiveness. • Discuss the Path-Goal Theory of leadership and explain the role of the leader in removing obstacles in followers’ paths. • Understand the role of attribution in the relationship between leaders and followers and how it can be used to manage relationships.

3. Learning Objectives (cont’d) 4. Present the Leader-Member Exchange Theory of leadership and clarify how the creation of in-groups and out-groups affects the leadership process. 5. Summarize the impact of leadership substitutes and identify situations in which the leader’s impact is decreased.

4. Leader structuring and consideration • Leader’s Actions: • Focus on obstacle • removal • Become comfortable • with both task and • consideration behaviors • Understand followers’ • perception Effectiveness: Employee satisfaction and motivation • Situational • contingencies: • Task structure • Employee need • for autonomy Path-Goal Theory of Leadership

5. Managerial Implications BasedOn Path-Goal Theory • Leaders must understand their followers’ perception of the task • Leaders must take their followers’ need for challenge and autonomy into account • When followers need challenge or the task is challenging, leaders must avoid being directive • When the task is routine, boring, or stressful, leaders must be supportive to motivate their followers

6. Attribution TheoryEmployees Are More Likely To Be Held Responsible When: • The consequences of their actions are severe • When they have a mediocre track record in other similar situations • When other employees are successful in similar situations

7. Attribution TheoryEmployees Are More Likely To Be Held Responsible When: • When the employee is defensive • When the manager’s success depends on the employee’s good performance

8. Out-group In-Group F F F F F F F F F F F F F Follower Leader-member Exchange Model Leader

9. Leader-Member Exchanges • Leaders develop relationships with each member of work group • High quality relationship • member is part of “in-group” • more responsibility, higher satisfaction • Low quality relationship • member is part of “out-group” • less responsibility, lower satisfaction

10. Theoretical Overview of LMX • Relationships develop from series of exchanges or interactions • Phase 1: Role-taking • member enters organization • leader assesses member’s abilities/talents • Phase 2: Role-making • informal, unstructured negotiation of role • Phase 3: Role-routinization • social exchange pattern emerges • becomes routine

11. Precursors of LMX • Member attributes influence relationship • extroversion • abilities • ingratiation behaviors • Leader provides social support • Affective responses influence relationship • perceived similarity • attraction • leads to increased interaction • trust

12. Outcomes of LMX • Job satisfaction • Organizational commitment • Moderated/affected by other factors • type of task matters • level of challenge • situational factors • size of group • workload • financial resources

13. Gender/Fairness and LMX • Gender differences influence interactions • Mixed gender relationships • supervisors rate performance lower • supervisors report liking subordinate less • subordinates experience greater role ambiguity • Opposite true in same gender relationships

14. Gender/Fairness and LMX Process Phases • 1: Role-taking - mutual respect essential • men and women define respect differently • social categorizing and stereotyping • 2: Role-making - trust develops • single violation may destroy relationship • violations reinforce negative stereotypes • 3: Role-routinization - mutual obligation • gender/fairness issues resolved by this phase

15. Perspective-Taking • Ability to “read” leader or member important in LMX • Use role-taking skills to entertain the point of view of another • Associated with empathy, reasonableness, and sensitivity • Negatively associated with aggressiveness and sarcasm

16. Perspective-Taking I Questions • When you were drawing, did you draw toward yourself or toward your partner? • How do you think your score on the perspective-taking questionnaire might relate to your performance on this task? • How do you think one’s tendency or ability to take the perspective (i.e., point of view) of another might influence the ways in which leaders and subordinates interact?

17. Perspective-Taking II Questions • How difficult was it for you to imagine drawing from your partner’s perspective? • How do you think your score on the perspective-taking questionnaire might relate to your performance on this task? • How do you think one’s tendency or ability to take the perspective (i.e., point of view) of another might influence the ways in which leaders and subordinates interact?

18. Perspective-Taking Wrap-up • 3 role-taking aspects related to perspective-taking • accurate in ability to perceive how others understand and respond to world • can view situations from many perspectives • able to perceive other’s perspective in depth • Leaders and members high on these aspects may have higher quality LMX

19. Productive Use Of In-Groups In order to use in-groups effectively, leaders should: • Base in-group membership on current performance and/or future potential • Review criteria for in-group membership • Assign tasks to those with best skills • Set clear performance-related guidelines for in- group membership

20. Productive Use Of In-Groups (cont’d) • Avoid highly differentiated groups • Keep membership fluid and dynamic • Maintain different in-groups for different activities • Consider culture in determining membership

21. Leadership Substitutes:Follower Characteristics • Experience and training substitute for leader structuring • Professionalism substitutes for leader consideration and structuring • Lack of value for goals neutralizes leader consideration and structuring

22. Leadership Substitutes:Task Characteristics • Unambiguous tasks substitute for leader structuring • Direct feedback from the task substitutes for leader consideration and structuring • Challenging task substitutes for leader consideration

23. Leadership Substitutes:Organizational Characteristics • A cohesive team substitutes for leader consideration and structuring • Leader’s lack of power neutralizes leader consideration and structuring • Standardization and formalization substitute for leader structuring • Organizational rigidity neutralizes leader structuring • Physical distance neutralizes leader consideration and structuring

24. Leading Change:The Medtronic Way • Company built on compassion and service to inside and outside constituents • Former President, Bill George, focused on balance • Provide employees with means to successfully balance their work and life

25. Leadership In Action: The Caring Navy Commander • Focus on removing obstacles for the crew • Willingness to listen and change • Use of participation as a way of getting the job done • Reliance on referent power rather than only legitimate and reward and punishment • Creates situations that serve as substitutes for leadership

26. The Leadership Challenge • India is vertical collectivistic and ascriptive • Office manager acting in accordance with his culture • Carefully evaluate the consequences of not hiring the “cousin” • In-groups are formed differently in different cultures