Leadership

1. Leadership

2. How Common is Good Leadership? How executives in 12 successful firms rate their managers: “In this market, leadership strength is always a pivotal factor in the decision to hire someone….. you'd better have that magic ingredient” (Recruiter, Business Week, 2004)

3. Theories of Leadership • Leadership research has looked at what makes for effective leadership using several lenses: • Trait theories • “its all about what you are” • Behavioral theories • “there’s an ideal leader behavior” • Contingency theories • “its how leader behaviors fit thatmatters”

4. Traits • Leader traits: • Basic personal characteristics - differentiate leaders from non-leaders: • Examples: • Intelligence, Drive, Height • Drive, desire, honesty/integrity, self-confidence, intelligence, job-relevant knowledge • Has some value, but mixed results when tested

5. Behavioral Theories • Effective leaders consistently behave in different ways than ineffective leaders. • There is “one best way” to lead

6. University of Iowa Study: • Key leadership behavior: participation or not • Democratic style (participative): Involve subordinates, delegate authority, encourage participation. • Autocratic style: Dictate work methods, centralize decision-making, limit participation • Laissez-faire: Give the group freedom (what leader?) • Results: What do you think? • Inconsistent, except that participative styles produce more subordinate satisfaction.

7. Ohio State and Michigan Studies • Key Leadership Behavior: Relationship or task • Consideration: employee-centered leader behavior indicating that a manager trusts, respects, and cares about subordinates (=relationship) • Initiating structure (of roles & goals): job-oriented leader behaviors, such as ensuring that: work gets done, subordinates perform their jobs acceptably, and the organization is efficient/effective. (=task) • Managers can be high or low on both behaviors. • Scoring high on both would seem to be best, but even here results have been mixed.

8. 9,9 pattern Team management 1,9 pattern “Country club” environment 5,5 pattern Middle-of-the-road management 1,1 pattern impoverished management 9,1 pattern Task management The “Managerial Grid”(The behavioral model you will see) Concern for People 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 89 Concern for Production

9. Contingency Theories • Leader effectiveness depends on “fit” between situation and leader behaviors. • The core problem is to specify how situational factors determine the optimal leader style: • Follower characteristics • Task characteristics • Also have to define key dimensions of leadership

10. Recall Expectancy Theory Individual Effort Individual Performance Organizational Rewards Individual Goals Expectancy Effort-performance linkage Valence Attractiveness Instrumentality Performance-reward linkage Clarify Goals and Path (Remove roadblocks) Reward Goal Attainment with desired outcomes

11. House’s Path-Goal Theory • Based on Expectancy Theory • Leaders can motivate subordinates by: • Increasing expectancy: • Clarifying the paths to the attainment of organizational goals, remove obstacles to performance, and express confidence in worker’s ability • Increasing instrumentality: • Reward workers for high performance and (organizational) goal attainment • Increasing valence: • Clearly identifying what outcomes workers are trying to obtain from their jobs, so that the rewards are outcomes the workers desire. • Comprehensive model, with most research evidence supporting its logic

12. Situational Leadership Model • Leader Behaviors • Telling: Leader defines roles and gives direction • Selling: Leader directs and supports • Participating: Shared decision making, leaders facilitate and communicate • Delegating: Leader provides little support or delegation • Follower Readiness: • R1: Unable and Unwilling • R2: Unable and Willing • R3: Able and Unwilling • R4: Able and Willing

13. Situational Leadership Model

14. Situational Leadership Model R2 R3 R1 R4

15. Examples – Situational Leadership • You are taking on a new sales management position, and one of the major challenges is that a new product that is more technically complex than prior ones is just being introduced. What would Situational Leadership theory suggest should be your style for: • Harry, a veteran, likable middle-performing salesperson who is unfamiliar with the new technology. • Jim, a recent college graduate who just finished the training program. • Diana, another high performer who has a masters in engineering and is said to know more about the products than the engineers at headquarters. • Mary, a high performer who guards her customer’s interests closely and is skeptical of the new product’s reliability

16. Gender And Leadership style • Women tend to adopt more democratic style, share power and information, and attempt to enhance followers’ self-worth. • Men tend to use more directive, command-and-control style.

17. Henderson as an Example “As Acting General Manager, Henderson was first in line to head the plant, but the Management Committee had reservations about him. He had applied cost accounting to examining each section of the plant and correcting what was needed to improve operational efficiency. He was good at getting agreements with each unit supervisor on specific production targets and working to see that they were met. People knew what they were to do and whether they had achieved the agreed-upon goals. He made the situation comfortable and smooth-running. He was liked by those around him, but he was colorless and did not inspire anyone to exert themselves to come up with new ideas or to feel or see that they and the plant could become the best in the business under his leadership. Doubts were expressed about how he would handle a crisis. Henderson was satisfactory … but the committee was looking for something additional in the leader they were seeking for the plant. Strong manager and Weak leader? Lets be precise: how is Henderson a leader, and how is he not a leader

18. Transformational vs. Transactional Leadership • Transactional Leaders: • Guide or motivate their followers in the direction of established goals by clarifying role and task requirements • Emphasizes exchange - “you do this and you will get that.” • Theories of leadership and motivation so far emphasize an underlying exchange model. • Transformational Leaders: • Inspire followers to transcendtheir self-interests and limits for the group • “Performance beyond expectations” – Generate extraordinary effort directed toward shared goals. • Can literally transform and revolutionize organizations. • Transformational & Transactional leadership are complementary, not mutually exclusive.

19. Transformational Leaders’ Influence on Followers: • Perform beyond expectations: • Make subordinates aware how important their jobs are and how crucial it is that they perform at their best. • Transcend self-interest: • Motivate subordinates to work for the good of the organization/group as a whole, and not just for their own personal gain and benefits. • Transcend limitations: • Make subordinates nevertheless aware of needs for personal growth, development and accomplishment. This is the “magic”

20. How it is done? • Embody the transformation • serving as (charismatic) role model to followers; gaining trust and exhibiting integrity • Transform meaning of work • articulation of clear, appealing, and inspiring vision • Transform how we think • stimulating creativity by questioning assumptions and challenging the status quo • Transcend limitations • attending to individual needs of followers

21. QC12 KZ19 DB15 LN13 BH2 IC16 Subordinate Motivation to Exert Extra Effort (0-10) DM10 FW21 OH11 CR3 IC31 Transformational Leadership and Motivation Transformational Leadership Score (0-10)

22. 13% 24/181 42% 76/181 High Low Subordinate Satisfaction 32% 58/181 13% 23/181 Low High Transformational Leadership Score Subordinate Satisfaction with Leader Supported from Japan to Israel to France to Mexico. For manager to clergy to CEO to naval officer to school teacher

23. Can Transformational Leadership Be Learned? Study of Bank Managers Transformational leadership Source: Barling, J., Weber, T., & Kelloway, E. K. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Journal of Applied Psychology, 81, 827-832.

24. Effects of Transformational Leadership on Commitment organizational commitment Source: Barling, J., Weber, T., & Kelloway, E. K. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Journal of Applied Psychology, 81, 827-832.

25. Effects of Transformational Leadership Training on Performance Personal loan sales 2 weeks before training 5 months after training Source: Barling, J., Weber, T., & Kelloway, E. K. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Journal of Applied Psychology, 81, 827-832.