2. Contents…..
• Leaders Vs. Managers
• Trait Theories
• Behavioural Theories –
– Ohio State studies,
– University of Michigan studies
• Contingency Theories
– Fiedler Model
– Hershey and Blanchard’s Situational Theory
– Path Goal Theory
• LMX Theory
3. Continued…
• Contemporary issues in leadership
– Charismatic and transformational leadership
– Authentic leadership
• Contemporary leadership roles
– Mentoring, self leadership, the E-age and on line
leadership
• Finding and creating effective leaders
4. What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of a vision
or set of goals.
Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.
5. Principles of Warren Buffet
There was a one hour interview on CNBC with Warren Buffet, the second richest
man who has donated $31 billion to charity. Here are some very interesting aspects
of his life:
1. He bought his first share at age 11 and he now regrets that he started too late!
2. He bought a small farm at age 14 with savings from delivering newspapers.
3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he
bought after he got married 50 years ago. He says that he has everything he needs
in that house. His house does not have a wall or a fence.
4. He drives his own car everywhere and does not have a driver or security people
around him.
6. 5. He never travels by private jet, although he owns the world's largest private jet
company.
6. His company, Berkshire Hathaway, owns 63 companies. He writes only one
letter each year to the CEOs of these companies, giving them goals for the year.
He never holds meetings or calls them on a regular basis. He has given his CEO's
only two rules. Rule number 1: do not lose any of your share holder's money.
Rule number 2: Do not forget rule number 1.
7. He does not socialize with the high society crowd. His past time after he gets
home is to make himself some pop corn and watch Television.
8. Bill Gates, the world's richest man met him for the first time only 5 years ago.
Bill Gates did not think he had anything in common with Warren Buffet. So he
had scheduled his meeting only for half hour. But when Gates met him, the
meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.
7. His advice to young people: "Stay away from credit cards and invest in yourself and
Remember:
A. Money doesn't create man but it is the man who created money.
B. Live your life as simple as you are.
C. Don't do what others say, just listen them, but do what you feel good.
D. Don't go on brand name; just wear those things in which you feel comfortable.
E. Don't waste your money on unnecessary things; just spend on them who really in
need rather.
F. After all it's your life then why give chance to others to rule our life."
9. Trait Theories
Leadership Traits:
• Ambition and energy
Theories that consider • The desire to lead
personality, social, physic
al, or intellectual traits to • Honest and integrity
differentiate leaders from • Self-confidence
non-leaders.
• Intelligence
• High self-monitoring
• Job-relevant knowledge
10. Trait Theories of Leadership
• Not very useful until matched with the Big Five
Personality Framework
• Essential Leadership Traits
– Extroversion
– Conscientiousness
– Openness
– Emotional Intelligence (Qualified)
• Traits can predict leadership, but they are better at
predicting leader emergence than effectiveness.
11. Trait Theories
Limitations:
• No universal traits found that predict leadership in
all situations.
• Traits predict behavior better in “weak” than
“strong” situations.
• Unclear evidence of the cause and effect of
relationship of leadership and traits.
• Better predictor of the appearance of leadership
than distinguishing effective and ineffective
leaders.
12. Behavioral Theories
Theories proposing that specific behaviors
differentiate leaders from non-leaders.
• Trait theory:
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
13. Important Behavioral Studies
Ohio • Initiating structure
• Consideration
State
• Production-oriented
Michigan • Employee-oriented
14. Ohio State Studies
Initiating Structure
1. Assigns group members to particular
The extent to which a leader is tasks
2. Expects workers to maintain definite
likely to define and structure his standards of performance
or her role and those of sub- 3. Emphasizes the meetings of deadlines
ordinates in the search for goal
attainment.
Consideration
The extent to which a leader is
likely to have job relationships
characterized by mutual trust,
respect for subordinate’s ideas,
and regard for their feelings.
15. University of Michigan Studies
Production-Oriented Leader
One who emphasizes technical
or task aspects of the job.
Employee-Oriented Leader
Emphasizing interpersonal relations;
taking a personal interest in the
needs of employees and accepting
individual differences among
members.
17. Fiedler’s Contingency Model
The theory that effective group performance
depends on a proper match between a leader’s style
of interacting with subordinates and the degree to
which the situation gives control and influence to the
leader.
Least Preferred Co-Worker (LPC)
Questionnaire
An instrument that purports to
measure whether a person is task-
or relationship-oriented.
18. Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Task Structure
The degree to which the job assignments are
procedurized.
Position Power
Influence derived from one’s formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.
20. Hersey and Blanchard’s Situational
Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness.
Unable and Unable but Able and Able and
Unwilling Willing Unwilling Willing
Follower readiness:
ability and willingness
Leader: decreasing need
for support and supervision
Directive High Task and Relationship Supportive Monitoring
Orientations Participative
21. Leadership Styles and Follower
Readiness
(Hersey and Blanchard)
Follower Unwilling Willing
Readiness
Able Supportive
Monitoring
Participative
Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations
22. Leader–Member Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and
subordinates with in-group status will have higher
performance ratings, less turnover, and greater job
satisfaction.
23. In-Group Out-Group
• Members are • Managed by formal
similar to leader rules and policies
• In the leader’s • Receive less of the
inner circle of leader’s attention /
communication fewer exchanges
• Receives more • More likely to
time and retaliate against the
attention from
organization
leader
• Gives greater
responsibility
and rewards
25. Path-Goal Theory
Developed by Robert House.
Extracted from Ohio State
Studies and Expectancy theory
of motivation.
The theory states that it is the
leader’s job to assist followers
in attaining their goals and to
provide them the necessary
direction and/or support to
ensure that their goals are
compatible with the overall
objectives of the group or
organization.
28. Charismatic Leadership
How do charismatic leaders influence followers?
Create a
Articulate a Create a new Demonstrate
Vision
Vision set of Values the Vision
Statement
Famous examples of charismatic leaders are Winston Churchill,
Bill Clinton, Mother Teresa and Adolph Hitler.
29. Transformational Leaders
• Inspire followers to transcend their self-interests for the good of
the organization
• Contingent Reward
• Management by Exception (active/ passive)
Transactional • Laissez-Faire
• Idealized Influence
• Inspirational Motivation
Transformational • Intellectual Stimulation
• Individualized Consideration
Famous transformational leaders include
Martin Luther King Jr. and Walt Disney.
30. 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.
31. 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 Sharing personal experiences with
better assignments the protégé
Providing exposure to influential Providing friendship and
individuals in the organization acceptance
Acting as a sounding board for
Acting as a role model
ideas
33. Global Implications
• These leadership theories are primarily studied in
English-speaking countries
• GLOBE does have some country-specific insights
– Indian employees want action-oriented and charismatic
leaders.
– 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
34. 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.
Notas del editor
The trait theory of leadership looks at personality, social, physical, or intellectual traits that differentiate leaders from nonleaders. 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 extroversion, conscientiousness, openness, 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 than the effectiveness of a leader.
Two key studies in the area of behavioral leadership advanced our understanding of the theory. The first was done at Ohio State University. They 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. 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.
In this theory Fiedler is trying to match the leader to the context. He proposes that leadership style is fixed. So that if the situation needs 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 coworker). 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 the 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.
Contingency theories have failed to account for followers and heterogeneous leadership approaches to individual workers. The Leader-Member Exchange theory begins to account for this. In this theory the premise is that because of time pressures leaders very quickly form special relationships with a small group of employees, the “in-group.” This group tends to be like the leader in terms of gender, race, age, and other characteristics. This group quickly becomes part of the leader’s inner circle of communication and will receive more time and attention from the leader. This group will experience more stress because of the added workload. The “outgroup” is made of people who tend to be different than the leader and correspondingly receive fewer exchanges. As a result they are more likely to experience stress because of their relationship and may retaliate against the organization as they become discontent with their assignments.
Charisa 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. This chart takes a look at key characteristics that are associated with a charismatic leader. These are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed. 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 must be engaging in behaviors that are perceived as counter to norms.
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.
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. This chart looks at the different characteristics of transactional and transformational leadership. 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.
Authentic leadership is a growing area of research. There are two 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, what they believe and bring those two aspects together in their actions. The second component is the 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.
Mentoring is defined as someone with more experience supporting someone with less experience. It is a way for the leadership of this generation to invest in individuals and develop future leaders. Mentoring has positive effects on both the career and the psychological functions of the individual being mentored.
Leaders don’t just happen to show up at the organization. They must be found and developed. When looking for leaders, it is important to understand what leadership characteristics and style will best match with your organization and find ways to identify leaders with those attributes. Once you have a leader or recognize leadership potential, it is essential to train and develop your leaders to effectively develop followers within your context.
Most of the theories we have explored are based on research gathered in English-speaking countries. When you look at research in other areas, you will find different variables that will impact both leaders and followers. It is very important when engaging in cross-cultural business opportunities that the difference in culture is considered. This is true when doing business in other countries, but it is also important to remember that many organizations are cross-cultural because of the make-up of their employees.The GLOBE study looked at 18,000 leaders in over 800 organizations in 62 countries. They found that the characteristics that determined transformational leadership were consistent across cultures. This is significant because it disputes the contingency view that leadership is dependent upon culture.
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.