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Chapter 9 / Slide 1
Copyright © 2017 Pearson Canada Inc.
Chapter 9
Leadership
Chapter 9 / Slide 2
Copyright © 2017 Pearson Canada Inc.
What Is Leadership?
• The influence that particular individuals exert
on the goal achievement of others in an
organizational context.
• Effective leadership exerts influence in a way
that achieves organizational goals by enhancing
the productivity, innovation, satisfaction, and
commitment of the workforce.
Chapter 9 / Slide 3
Copyright © 2017 Pearson Canada Inc.
What Is Leadership? (continued)
• Leadership is about motivating people and
gaining their commitment.
• Leadership has a strong effect on an
organization’s strategy, success, and very
survival.
Chapter 9 / Slide 4
Copyright © 2017 Pearson Canada Inc.
Strategic Leadership
• Leadership that involves the ability to
anticipate, envision, maintain flexibility, think
strategically, and work with others to initiate
changes that will create a viable future for the
organization.
• Strategic leaders are open and honest in their
interactions with the organization’s
stakeholders, and they focus on the future.
Chapter 9 / Slide 5
Copyright © 2017 Pearson Canada Inc.
Formal Leadership
• Individuals with titles such as manager,
executive, supervisor, and department head
occupy formal or assigned leadership roles.
• They are expected to influence others, and they
are given specific authority to direct
employees.
• Some managers and supervisors fail to exert any
influence on others.
• Leadership involves going beyond formal role
requirements to influence others.
Chapter 9 / Slide 6
Copyright © 2017 Pearson Canada Inc.
Informal Leadership
• Individuals might also emerge to occupy
informal leadership roles.
• They do not have formal authority.
• They must rely on being well liked or being
perceived as highly skilled to exert influence.
Chapter 9 / Slide 7
Copyright © 2017 Pearson Canada Inc.
Are Leaders Born? The Trait
Theory of Leadership
• Leadership depends on the personal qualities or
traits of the leader.
• Based on the assumption that those who
become leaders and do a good job of it possess
a special set of traits that distinguish them from
the masses of followers.
Chapter 9 / Slide 8
Copyright © 2017 Pearson Canada Inc.
Research on Leadership Traits
• The search for leadership traits began during
World War I.
• Traits are individual characteristics such as
physical attributes, intellectual ability, and
personality.
• Many traits are not associated with whether
people become leaders or how effective they
are as leaders.
• However, some traits are associated with
leadership.
Chapter 9 / Slide 9
Copyright © 2017 Pearson Canada Inc.
Traits Associated with Leadership
Effectiveness
Chapter 9 / Slide 10
Copyright © 2017 Pearson Canada Inc.
Research on Leadership Traits
• All five of the “Big Five” dimensions of
personality are related to leadership emergence
and success.
• Of the “Big Five,” extraversion and
conscientiousness are the most consistent
predictors of leadership effectiveness.
• Intelligence is related to leadership
effectiveness, however, the relationship is
lower than previously thought.
Chapter 9 / Slide 11
Copyright © 2017 Pearson Canada Inc.
Research on Leadership Traits
(continued)
• The relationship between traits and leadership
effectiveness is stronger for affective and
relational measures of effectiveness than for
performance-related measures.
• The trait approach is not the best means of
understanding and improving leadership.
Chapter 9 / Slide 12
Copyright © 2017 Pearson Canada Inc.
Limitations of the Trait Approach
• It is difficult to determine whether traits make
the leader or whether the opportunity for
leadership produces the traits.
• Does not tell us what leaders do to influence
others successfully.
• It can lead to bias and discrimination when
evaluating a leader’s effectiveness and when
making decisions about promoting people to
leadership positions.
Chapter 9 / Slide 13
Copyright © 2017 Pearson Canada Inc.
Limitations of the Trait Approach
(continued)
• Leadership categorization theory: People are
more likely to view somebody as a leader and to
evaluate them as a more effective leader when
they possess prototypical characteristics of
leadership.
• The most crucial problem is that it does not
take into account the situation in which
leadership occurs.
Chapter 9 / Slide 14
Copyright © 2017 Pearson Canada Inc.
Limitations of the Trait
Approach: Summary
• Traits alone are not sufficient for successful
leadership.
• Traits are only a precondition for certain
actions that a leader must take in order to be
successful.
• Leader behaviours have a greater impact on
leadership effectiveness than leader traits.
Chapter 9 / Slide 15
Copyright © 2017 Pearson Canada Inc.
The Behaviour of Leaders
• What are the crucial behaviours leaders engage
in, and how do these behaviours influence
employee performance and satisfaction?
• Is there a particular leadership style that is
more effective than other styles?
Chapter 9 / Slide 16
Copyright © 2017 Pearson Canada Inc.
Ohio State University Leadership
Study
• The most involved, systematic study of
leadership took place at Ohio State University in
the 1940s.
• Employees described their superiors along a
number of behavioural dimensions.
• The results revealed two basic kinds of
behaviour:
– Consideration
– Initiating structure
Chapter 9 / Slide 17
Copyright © 2017 Pearson Canada Inc.
Consideration
• The extent to which a leader is approachable
and shows personal concern and respect for
employees.
• The considerate leader is seen as friendly and
egalitarian, expresses appreciation and support,
and is protective of group welfare.
Chapter 9 / Slide 18
Copyright © 2017 Pearson Canada Inc.
Initiating Structure
• The degree to which a leader concentrates on
group goal attainment.
• The structuring leader clearly defines and
organizes his or her role and the roles of
followers, stresses standard procedures,
schedules the work to be done, and assigns
employees to particular tasks.
Chapter 9 / Slide 19
Copyright © 2017 Pearson Canada Inc.
The Consequences of
Consideration and Structure
• Consideration and initiating structure both
contribute positively to employees’ motivation,
job satisfaction, and leader effectiveness.
• Consideration is more strongly related to
follower satisfaction, motivation, and leader
effectiveness.
Chapter 9 / Slide 20
Copyright © 2017 Pearson Canada Inc.
The Consequences of
Consideration and Structure
(continued)
• Initiating structure is slightly more strongly
related to leader job performance and group
performance.
• The relative importance of consideration and
initiating structure varies according to the
nature of the leadership situation.
Chapter 9 / Slide 21
Copyright © 2017 Pearson Canada Inc.
The Consequences of
Consideration and Structure: The
Nature of the Situation
• The effects of consideration and initiating
structure depend on characteristics of the task,
the employee, and the setting in which work is
performed.
Chapter 9 / Slide 22
Copyright © 2017 Pearson Canada Inc.
Leader Reward and Punishment
Behaviours
• Leader reward behaviour provides employees
with compliments, tangible benefits, and
deserved special treatment.
• When such rewards are made contingent on
performance, employees should perform at a
high level and experience job satisfaction.
Chapter 9 / Slide 23
Copyright © 2017 Pearson Canada Inc.
Leader Reward and Punishment
Behaviours (continued)
• Leader punishment behaviour involves the use
of reprimands or unfavourable task assignments
and the active withholding of raises,
promotions, and other rewards.
• When punishment is perceived as random and
not contingent on employee behaviour,
employees react negatively with great
dissatisfaction.
Chapter 9 / Slide 24
Copyright © 2017 Pearson Canada Inc.
Leader Reward and Punishment
Behaviours: Research
• Contingent leader reward and punishment
behaviour is positively related to employees’
perceptions, attitudes, and behaviour.
• Non-contingent punishment behaviour is related
to unfavourable outcomes.
• Relationships are much stronger when rewards
and punishment are made contingent on
employee behaviour.
Chapter 9 / Slide 25
Copyright © 2017 Pearson Canada Inc.
Leader Reward and Punishment
Behaviours: Research (continued)
• The manner in which leaders administer
rewards and punishment is a critical
determinant of their effectiveness.
• Leader reward and punishment behaviours are
related to employee attitudes and behaviours
because they lead to more positive perceptions
of justice and lower role ambiguity.
Chapter 9 / Slide 26
Copyright © 2017 Pearson Canada Inc.
Situational Theories of
Leadership
• The situation refers to the setting in which
influence attempts occur.
• The basic premise of situational theories of
leadership is that the effectiveness of a
leadership style is contingent on the setting.
Chapter 9 / Slide 27
Copyright © 2017 Pearson Canada Inc.
Situational Theories of
Leadership (continued)
• The setting includes the characteristics of the
employees, the nature of the task they are
performing, and characteristics of the
organization.
Chapter 9 / Slide 28
Copyright © 2017 Pearson Canada Inc.
Situational Theories of
Leadership (continued)
• Two situational theories of leadership that are
among the best known and most studied:
– Fiedler’s Contingency Theory
– House’s Path-Goal Theory
Chapter 9 / Slide 29
Copyright © 2017 Pearson Canada Inc.
Fiedler’s Contingency Theory
• The association between leadership orientation
and group effectiveness is contingent on
(depends on) the extent to which the situation
is favourable for exerting influence.
• Some situations are more favourable than
others, and these situations require different
orientations on the part of the leader.
Chapter 9 / Slide 30
Copyright © 2017 Pearson Canada Inc.
Leadership Orientation
• Leadership orientation is measured by having a
leader describe their Least Preferred Co-Worker
(LPC).
• Least Preferred Co-Worker is a current or past
co-worker with whom a leader has had a
difficult time accomplishing a task.
Chapter 9 / Slide 31
Copyright © 2017 Pearson Canada Inc.
Leadership Orientation
(continued)
• The leader who describes the LPC relatively
favourably (a high LPC score) is considered to
be relationship oriented.
• The leader who describes the LPC unfavourably
(a low LPC score) is considered to be task
oriented.
Chapter 9 / Slide 32
Copyright © 2017 Pearson Canada Inc.
Leadership Orientation
(continued)
• Fiedler has argued that the LPC score reveals a
personality trait that reflects the leader’s
motivational structure.
• The LPC score is not a measure of consideration
or initiating structure which are observed
behaviours.
• The LPC score is an attitude of the leader
toward work relationships.
Chapter 9 / Slide 33
Copyright © 2017 Pearson Canada Inc.
Situational Favourableness
• Situational favourableness is the “contingency”
part of contingency theory.
• It specifies when a particular LPC orientation
should contribute most to group effectiveness.
Chapter 9 / Slide 34
Copyright © 2017 Pearson Canada Inc.
Situational Favourableness
(continued)
• Factors that affect situational favourableness,
in order of importance, are the following:
– Leader-member relations
– Task structure
– Position power
Chapter 9 / Slide 35
Copyright © 2017 Pearson Canada Inc.
Situational Favourableness
(continued)
• The situation is most favourable for leadership
when:
– Leader-member relations are good
– The task is structured
– The leader has strong position power
Chapter 9 / Slide 36
Copyright © 2017 Pearson Canada Inc.
Situational Favourableness
(continued)
• The situation is least favourable for leadership
when:
– Leader-member relations are poor
– The task is unstructured
– The leader has weak position power
Chapter 9 / Slide 37
Copyright © 2017 Pearson Canada Inc.
Predictions of Leader
Effectiveness from Fiedler’s
Contingency Theory of Leadership
Chapter 9 / Slide 38
Copyright © 2017 Pearson Canada Inc.
Fiedler’s Contingency Theory
(continued)
• The model indicates that a task orientation
(low LPC) is most effective when the leadership
situation is very favourable or when it is very
unfavourable.
• A relationship orientation (high LPC) is most
effective in conditions of medium favourability.
Chapter 9 / Slide 39
Copyright © 2017 Pearson Canada Inc.
Contingency Theory: Research
Evidence
• Contingency theory has been the subject of
much debate.
• The exact meaning of the LPC score is not
clear.
• A major source of the many inconsistent
findings is the small sample sizes used in many
studies.
• Recent reviews have concluded that there is
reasonable support for contingency theory.
Chapter 9 / Slide 40
Copyright © 2017 Pearson Canada Inc.
House’s Path-Goal Theory
• Robert House’s theory is concerned with the
situations under which various leader
behaviours are most effective.
• Path-Goal Theory is concerned with leader
behaviours.
• Why did House choose the name “path-goal” for
his theory?
Chapter 9 / Slide 41
Copyright © 2017 Pearson Canada Inc.
The Theory
• The most important activities of leaders are
those that clarify the paths to various goals of
interest to employees.
• The opportunity to achieve such goals should
promote job satisfaction, leader acceptance,
and high effort.
• The effective leader forms a connection
between employee goals and organizational
goals.
Chapter 9 / Slide 42
Copyright © 2017 Pearson Canada Inc.
The Theory (continued)
• To achieve job satisfaction and leader
acceptance, leader behaviour must be
perceived as immediately satisfying or as
leading to future satisfaction.
• To promote employee effort, leaders must
make rewards dependent on performance and
ensure that employees have a clear picture of
how they can achieve these rewards.
Chapter 9 / Slide 43
Copyright © 2017 Pearson Canada Inc.
Leader Behaviour
• Path-Goal Theory is concerned with four
specific kinds of leader behaviour:
– Directive behaviour
– Supportive behaviour
– Participative behaviour
– Achievement-oriented behaviour
Chapter 9 / Slide 44
Copyright © 2017 Pearson Canada Inc.
Directive Behaviour
• Directive leaders schedule work, maintain
performance standards, and let employees
know what is expected of them.
• It is identical to initiating structure.
Chapter 9 / Slide 45
Copyright © 2017 Pearson Canada Inc.
Supportive Behaviour
• Supportive leaders are friendly, approachable,
and concerned with pleasant interpersonal
relationships.
• It is identical to consideration.
Chapter 9 / Slide 46
Copyright © 2017 Pearson Canada Inc.
Participative Behaviour
• Participative leaders consult with employees
about work-related matters and consider their
opinions.
Chapter 9 / Slide 47
Copyright © 2017 Pearson Canada Inc.
Achievement-Oriented Behaviour
• Achievement-oriented leaders encourage
employees to exert high effort and strive for a
high level of goal accomplishment.
• They express confidence that employees can
reach these goals.
Chapter 9 / Slide 48
Copyright © 2017 Pearson Canada Inc.
Situational Factors
• The effectiveness of each set of behaviours
depends on the situation that the leader
encounters.
• Path-Goal Theory is concerned with two primary
classes of situational factors:
– Employee characteristics
– Environmental factors
Chapter 9 / Slide 49
Copyright © 2017 Pearson Canada Inc.
Situational Factors (continued)
• The impact of leader behaviour on employee
satisfaction, effort, and acceptance of the
leader depends on the nature of the employees
and the work environment.
Chapter 9 / Slide 50
Copyright © 2017 Pearson Canada Inc.
The Path-Goal Theory of
Leadership
Chapter 9 / Slide 51
Copyright © 2017 Pearson Canada Inc.
Employee Characteristics
• Different types of employees need or prefer
different forms of leadership:
– High need achievers should work well under
achievement-oriented leadership.
– Employees who prefer to be told what to do
respond best to directive leadership.
– When employees have low task abilities,
they will appreciate directive leadership.
Chapter 9 / Slide 52
Copyright © 2017 Pearson Canada Inc.
Environmental Factors
• The effectiveness of leadership behaviour
depends on the particular work environment:
– When tasks are clear and routine, directive
leadership is redundant and unnecessary and
participative leadership is not useful.
– When tasks are challenging but ambiguous,
directive and participative leadership is
effective.
– When a job is frustrating or dissatisfying,
supportive leadership is most effective.
Chapter 9 / Slide 53
Copyright © 2017 Pearson Canada Inc.
Situational Factors (continued)
• Leaders might have to tailor their behaviour to
the needs, abilities, and personalities of
individual employees.
• Effective leaders should take advantage of the
motivating and satisfying aspects of jobs while
offsetting or compensating for those job
aspects that demotivate or dissatisfy.
Chapter 9 / Slide 54
Copyright © 2017 Pearson Canada Inc.
Path-Goal Theory: Research
Evidence
• There is substantial evidence that supportive or
considerate leader behaviour is most beneficial
in supervising routine, frustrating, or
dissatisfying jobs.
• There is some evidence that directive or
structuring leader behaviour is most effective
on ambiguous, less-structured jobs.
Chapter 9 / Slide 55
Copyright © 2017 Pearson Canada Inc.
Path-Goal Theory: Research
Evidence (continued)
• The theory works better in predicting
employees’ job satisfaction and acceptance of
the leader than in predicting job performance.
Chapter 9 / Slide 56
Copyright © 2017 Pearson Canada Inc.
Participative Leadership:
Involving Employees in Decisions
• Participative leadership is one of the leader
behaviours in path-goal theory.
• It is an important leadership style and deserves
further attention.
Chapter 9 / Slide 57
Copyright © 2017 Pearson Canada Inc.
What is Participative Leadership?
• Participative leadership means involving
employees in making work-related decisions.
• Leaders can vary in the extent to which they
involve employees in decision making.
• Minimally, participation involves obtaining
employee opinions before making a decision.
• Maximally, it allows employees to make their
own decisions within agreed-on limits.
Chapter 9 / Slide 58
Copyright © 2017 Pearson Canada Inc.
Employee Participation in
Decision Making
Chapter 9 / Slide 59
Copyright © 2017 Pearson Canada Inc.
What is Participative Leadership?
(continued)
• Participation can involve individual employees
or the entire group of employees that reports to
the leader.
• The choice of an individual or group
participation strategy should be tailored to
specific situations.
Chapter 9 / Slide 60
Copyright © 2017 Pearson Canada Inc.
Potential Advantages of
Participative Leadership
• What are the potential advantages of
participation as a leadership technique?
– Motivation
– Quality
– Acceptance
Chapter 9 / Slide 61
Copyright © 2017 Pearson Canada Inc.
Motivation
• Participation can increase the motivation of
employees.
• Participation can permit employees to
contribute to the establishment of work goals
and how to accomplish them.
• Participation can increase intrinsic motivation
by enriching jobs.
Chapter 9 / Slide 62
Copyright © 2017 Pearson Canada Inc.
Quality
• Participation can enhance the quality of
decisions.
• “Two heads are better than one.”
• Participation can also enhance quality because
it empowers employees to take direct action
and solve problems.
Chapter 9 / Slide 63
Copyright © 2017 Pearson Canada Inc.
Acceptance
• Participation can increase employees’
acceptance of decisions.
• This is especially important when issues of
fairness are involved.
Chapter 9 / Slide 64
Copyright © 2017 Pearson Canada Inc.
Potential Problems of
Participative Leadership
• What are the potential disadvantages of
participation as a leadership technique?
– Time and energy
– Loss of power
– Lack of receptivity or knowledge
Chapter 9 / Slide 65
Copyright © 2017 Pearson Canada Inc.
Time and Energy
• Participation requires specific behaviours on the
part of the leader that use time and energy.
Chapter 9 / Slide 66
Copyright © 2017 Pearson Canada Inc.
Loss of Power
• Some leaders feel that a participative style will
reduce their power and influence.
• Sometimes leaders respond by asking employees
to make trivial decisions.
Chapter 9 / Slide 67
Copyright © 2017 Pearson Canada Inc.
Lack of Receptivity or Knowledge
• Employees might not be receptive to
participation when the leader is not trusted or
when a poor labour climate exists.
• Employees might lack the knowledge to
contribute effectively to decisions and might
not be aware of external constraints on their
decisions.
Chapter 9 / Slide 68
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago’s Situational
Model of Participation
• Victor Vroom and Arthur Jago developed a
model that attempts to specify in a practical
manner when leaders should use participation
and to what extent they should use it.
• They began with the recognition that there are
various degrees of participation that a leader
can exhibit.
Chapter 9 / Slide 69
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago’s Situational
Model of Participation
(continued)
• For issues involving the entire work group, a
range of decision making strategies is plausible:
– A stands for autocratic
– C for consultative
– G for group
Chapter 9 / Slide 70
Copyright © 2017 Pearson Canada Inc.
Autocratic Strategies
• AI: You solve the problem or make the decision
yourself.
• AII: You obtain the necessary information from
your employees, then decide the solution to the
problem yourself.
Chapter 9 / Slide 71
Copyright © 2017 Pearson Canada Inc.
Consultative Strategies
• CI: You share the problem with the relevant
employees individually, getting their ideas and
suggestions, then you make the decision.
• CII: You share the problem with your employees
as a group, obtaining their collective ideas and
suggestions, then you make the decision.
Chapter 9 / Slide 72
Copyright © 2017 Pearson Canada Inc.
Group Strategy
• GII: You share the problem with your employees
as a group and together you generate and
evaluate alternatives and attempt to reach
agreement (consensus) on a solution.
• Which of these strategies is most effective?
Chapter 9 / Slide 73
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago’s Situational
Model of Participation
(continued)
• The most effective strategy depends on the
situation or problem at hand.
• The leader’s goal should be to make high-
quality decisions to which employees will be
adequately committed without undue delay.
• To do this, the leader must consider questions
in a decision tree.
Chapter 9 / Slide 74
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago’s Situational
Model of Participation
(continued)
• The questions consider decision quality,
subordinate commitment, and problem
structure.
• The questions are oriented toward preserving
either decision quality or commitment to the
decision.
• By tracing a problem through the decision tree,
the leader encounters the prescribed degree of
participation for that problem.
Chapter 9 / Slide 75
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago Decision Tree
Questions
• QR: How important is the technical quality of
this decision? (quality requirement)
• CR: How important is subordinate commitment
to the decision? (commitment requirement)
• LI: Do you have sufficient information to make a
high-quality decision?
• ST: Is the problem well-structured?
Chapter 9 / Slide 76
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago Decision Tree
Questions (continued)
• CP: If you were to make the decision by
yourself, is it reasonably certain that your
subordinates would be committed to the
decision?
• GC: Do subordinates share the organizational
goals to be attained in solving the problem?
Chapter 9 / Slide 77
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago Decision Tree
Questions (continued)
• CO: Is conflict among subordinates over
preferred solutions likely?
• SI: Do subordinates have sufficient information
to make a high-quality decision?
Chapter 9 / Slide 78
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago’s Situational
Model of Participation
(continued)
• By tracing the problem through the decision
tree, the leader encounters the prescribed
degree of participation for that problem.
• The tree shows the fastest approach possible
that still maintains decision quality and
commitment.
• If a leader is willing to sacrifice some speed, a
more participative approach could stimulate
employee development.
Chapter 9 / Slide 79
Copyright © 2017 Pearson Canada Inc.
The Vroom and Jago Decision
Tree for Participative Leadership
Chapter 9 / Slide 80
Copyright © 2017 Pearson Canada Inc.
Vroom and Jago Model: Research
Evidence
• The model has substantial research support.
• Following the model’s prescriptions is more
likely to lead to successful managerial decisions
than unsuccessful decisions.
• But does participative leadership result in
beneficial outcomes?
Chapter 9 / Slide 81
Copyright © 2017 Pearson Canada Inc.
Participative Leadership:
Research Evidence
• There is substantial evidence that employees
who have the opportunity to participate in
work-related decisions report more job
satisfaction, higher task performance, and
organizational citizenship behaviour toward the
organization than those who do not.
• These results are partly due to a positive effect
on employee empowerment and trust in one’s
supervisor.
Chapter 9 / Slide 82
Copyright © 2017 Pearson Canada Inc.
Participative Leadership:
Research Evidence (continued)
• Most workers seem to prefer a participative
work environment.
• However, for participation to be translated into
higher productivity, certain facilitating
conditions must exist.
• When will participation work best?
Chapter 9 / Slide 83
Copyright © 2017 Pearson Canada Inc.
Conditions for Participation
• Participation should work best when:
– Employees feel favourably toward it.
– Employees are intelligent and knowledgeable
about the issue at hand.
– When the task is complex enough to make
participation useful.
• These conditions are incorporated into the
Vroom and Jago model.
Chapter 9 / Slide 84
Copyright © 2017 Pearson Canada Inc.
Leader-Member Exchange (LMX)
Theory
• A theory of leadership that focuses on the
relationship that develops between a leader and
an employee.
• It is a social exchange relationship-based
approach to leadership.
Chapter 9 / Slide 85
Copyright © 2017 Pearson Canada Inc.
Leader-Member Exchange (LMX)
Theory (continued)
• Effective leadership processes result when
leaders and employees develop and maintain
high-quality social exchange relationships.
• The basis for the effects of LMX is social
exchange theory and the norm of reciprocity.
Chapter 9 / Slide 86
Copyright © 2017 Pearson Canada Inc.
Social Exchange Theory
• Individuals who are treated favourably by
others feel obliged to reciprocate by responding
positively and returning that favourable
treatment in some manner.
• Employees in a high-quality relationship with
their supervisor will reciprocate with extra
effort and higher commitment and
performance.
Chapter 9 / Slide 87
Copyright © 2017 Pearson Canada Inc.
Leader-Member Exchange (LMX)
Theory (continued)
• High LMX involves a high degree of mutual
influence and obligation as well as trust,
loyalty, open communication, and respect
between a leader and an employee.
• In high-quality relationships, employees
perform tasks beyond their job descriptions.
Chapter 9 / Slide 88
Copyright © 2017 Pearson Canada Inc.
Leader-Member Exchange (LMX)
Theory (continued)
• Low LMX is characterized by low trust, respect,
obligation, and mutual support.
• In low-quality relationships, the leader provides
less attention and latitude to employees.
• Employees do only what their job descriptions
and formal role requirements demand.
Chapter 9 / Slide 89
Copyright © 2017 Pearson Canada Inc.
Leader-Member Exchange (LMX)
Theory: Research Evidence
• Employees with higher quality LMX have higher
self-efficacy, more positive work attitudes, and
higher OCB and job performance.
• Higher-quality LMX relationships result in
positive outcomes for leaders, employees, work
units, and organizations.
Chapter 9 / Slide 90
Copyright © 2017 Pearson Canada Inc.
Transactional Leadership
• Transactional leadership is leadership that is
based on a straightforward exchange
relationship between a leader and followers.
• Transactional leadership behaviour involves:
– Contingent reward behaviour (leader reward
behaviour)
– Management by exception
Chapter 9 / Slide 91
Copyright © 2017 Pearson Canada Inc.
Management By Exception
• Leadership that involves the leader taking
corrective action on the basis of the results of
leader-follower transactions.
• The leader monitors follower behaviour,
anticipates problems, and takes corrective
actions before the behaviour creates serious
problems.
Chapter 9 / Slide 92
Copyright © 2017 Pearson Canada Inc.
Transformational Leadership
• Transformational leadership is leadership that
provides followers with a new vision that instills
true commitment.
• Transformational leaders change the beliefs and
attitudes of followers to correspond with a new
vision and motivates them to achieve
performance beyond expectations.
Chapter 9 / Slide 93
Copyright © 2017 Pearson Canada Inc.
Transformational Leaders
• Popular examples of transformational leaders:
Herb Kelleher, Michael Eisner, Steven Jobs, and
Carly Fiorina.
• Transformational leaders are usually good at
the transactional aspects of clarifying the paths
to goals and rewarding good performance.
• What are the behaviours of these
transformational leaders who encourage
considerable effort and dedication on the part
of followers?
Chapter 9 / Slide 94
Copyright © 2017 Pearson Canada Inc.
Behaviours of Transformational
Leadership
• There are four key dimensions of
transformational leader behavour:
– Intellectual stimulation
– Individualized consideration
– Inspirational motivation
– Charisma
Chapter 9 / Slide 95
Copyright © 2017 Pearson Canada Inc.
Intellectual Stimulation
• People are stimulated to think about problems,
issues, and strategies in new ways.
• This contributes to the “new vision” aspect of
transformational leadership.
• The leader challenges assumptions, takes risks,
and solicits followers’ ideas.
• It often involves creativity and novelty.
Chapter 9 / Slide 96
Copyright © 2017 Pearson Canada Inc.
Individualized Consideration
• This involves treating employees as distinct
individuals, indicating concern for their needs
and personal development, and serving as a
mentor or coach when appropriate.
• The emphasis is a one-on-one attempt to meet
the concerns and needs of the individual in
question in the context of the overall goal or
mission.
Chapter 9 / Slide 97
Copyright © 2017 Pearson Canada Inc.
Inspirational Motivation
• This involves the communication of visions that
are appealing and inspiring to followers.
• Leaders with inspirational motivation have a
strong vision for the future based on values and
ideals.
• They stimulate enthusiasm, challenge followers
with high standards, communicate optimism
about future goal attainment, and provide
meaning for the task at hand.
• They inspire followers using symbolic actions
and persuasion.
Chapter 9 / Slide 98
Copyright © 2017 Pearson Canada Inc.
Charisma
• The ability to command strong loyalty and
devotion from followers and thus have the
potential for strong influence among them.
• This is the most important aspect of
transformational leadership.
• Charisma provides the emotional aspect of
transformational leadership.
• The emergence of charisma is a complex
function of traits, behaviours, and being in the
right place at the right time.
Chapter 9 / Slide 99
Copyright © 2017 Pearson Canada Inc.
Transformational Leadership:
Research Evidence
• Transformational leadership is strongly related
to follower motivation and satisfaction, leader
performance, leader effectiveness, and
individual, group, and organization
performance.
• Charismatic leadership has also been found to
be strongly related to follower satisfaction and
leadership effectiveness.
Chapter 9 / Slide 100
Copyright © 2017 Pearson Canada Inc.
Transformational Leadership:
Research Evidence (continued)
• Compared to other forms of leader behaviour,
transformational leadership has been found to
be the most consistent predictor of effective
leadership.
• Some evidence that CEO transformational
leadership is positively related to firm
performance, especially when the environment
is uncertain, and to levels of organizational
commitment.
Chapter 9 / Slide 101
Copyright © 2017 Pearson Canada Inc.
Transformational Leadership:
Research Evidence (continued)
• Transformational leadership is especially
effective during times of change and for
obtaining employees’ commitment to change.
• Overall, the best leaders are both
transformational and transactional.
Chapter 9 / Slide 102
Copyright © 2017 Pearson Canada Inc.
New and Emerging Theories of
Leadership
• Leadership research has begun to focus on the
broader context of the leadership process.
• This has led to the emergence of new forms of
leadership behaviours and theories:
– Empowering leadership
– Ethical leadership
– Authentic leadership
– Servant leadership
Chapter 9 / Slide 103
Copyright © 2017 Pearson Canada Inc.
Empowering Leadership
• Empowering leadership involves implementing
conditions that enable power to be shared with
employees.
• Empowering leaders provide participation and
autonomy in decision making.
• Employees experience a state of psychological
empowerment that consists of feelings of
meaning, competence, self-determination, and
impact.
Chapter 9 / Slide 104
Copyright © 2017 Pearson Canada Inc.
Empowering Leadership
(continued)
• Empowering leadership provides employees
with a greater feeling of control over their work
and a sense that they can make a difference in
their organization’s effectiveness.
• Empowering leadership has been found to be
positively related to job performance and
creativity-relevant behaviours.
Chapter 9 / Slide 105
Copyright © 2017 Pearson Canada Inc.
Ethical Leadership
• Ethical leadership involves the demonstration
of normatively appropriate conduct through
personal actions and interpersonal
relationships, and the promotion of such
conduct to followers through two-way
communication, reinforcement, and decision-
making.
• What do ethical leaders do?
Chapter 9 / Slide 106
Copyright © 2017 Pearson Canada Inc.
Ethical Leader Behaviours
• They model what is deemed to be normatively
appropriate behaviour (e.g., honesty).
• They make ethics salient in the workplace.
• They set ethical standards.
• They reward ethical behaviour.
• They discipline those who don’t follow ethical
standards and punish unethical behaviour.
Chapter 9 / Slide 107
Copyright © 2017 Pearson Canada Inc.
Ethical Leader Behaviours
(continued)
• Ethical leaders consider the ethical
consequences of their decisions.
• They care about people and the broader society
and seek to do the right thing personally and
professionally.
Chapter 9 / Slide 108
Copyright © 2017 Pearson Canada Inc.
Ethical Leadership (continued)
• Ethical leadership is positively related to more
favourable evaluations of leaders, more positive
job attitudes, and greater performance.
• It is negatively related to job strains, turnover
intentions, and counterproductive work
behaviours.
• The relationship between ethical leadership and
positive work outcomes is due to trust in the
leader.
Chapter 9 / Slide 109
Copyright © 2017 Pearson Canada Inc.
Ethical Leadership (continued)
• The ethical behaviour of leaders has a
significant influence on the ethical culture of an
organization.
• The ethical leadership of immediate supervisors
is likely to have the greatest effect on
employees.
Chapter 9 / Slide 110
Copyright © 2017 Pearson Canada Inc.
Authentic Leadership
• Authentic leadership is a positive form of
leadership that involves being true to oneself.
• Authentic leaders know and act upon their true
values, beliefs, and strengths, and they help
others do the same.
• Their conduct and behaviour is guided by their
internal values.
Chapter 9 / Slide 111
Copyright © 2017 Pearson Canada Inc.
Authentic Leadership (continued)
• Authentic leadership consists of four related but
distinct behaviours:
– Self-awareness
– Relational transparency
– Balanced processing
– Internalized moral perspective
Chapter 9 / Slide 112
Copyright © 2017 Pearson Canada Inc.
Self-Awareness
• An accurate understanding of one’s strengths
and weaknesses and an awareness of one’s
impact on others.
Chapter 9 / Slide 113
Copyright © 2017 Pearson Canada Inc.
Relational Transparency
• The presenting of one’s true or authentic self to
others and the open sharing of information and
expressions of one’s true thoughts and feelings.
Chapter 9 / Slide 114
Copyright © 2017 Pearson Canada Inc.
Balanced Processing
• The objective analysis of all relevant
information before making a decision and
consideration of views that challenge one’s own
position.
Chapter 9 / Slide 115
Copyright © 2017 Pearson Canada Inc.
Internalized Moral Perspective
• They have internal moral standards and values
that guide their behaviour and decision making.
Chapter 9 / Slide 116
Copyright © 2017 Pearson Canada Inc.
Authentic Leadership (continued)
• Followers of authentic leaders have higher:
– Organizational commitment
– Job satisfaction
– Satisfaction with their supervisor
– Organizational citizenship behaviour
– Work engagement
– Ethical and pro-social behaviours
Chapter 9 / Slide 117
Copyright © 2017 Pearson Canada Inc.
Authentic Leadership (continued)
• Authentic leadership has been found to be
positively related to the psychological capital of
work groups and trust among group members
which led to higher group citizenship behaviours
and performance.
• Team leader authenticity has also been found
to be related to team members’ authenticity
which was related to higher quality teamwork
behaviour and team productivity.
Chapter 9 / Slide 118
Copyright © 2017 Pearson Canada Inc.
Servant Leadership
• Servant leadership is a form of leadership that
involves going beyond one’s own self-interests
and having a genuine concern to serve others
and a motivation to lead.
• The focus of servant leadership is a concern for
the needs of followers and their growth and
development.
• A servant leader is somebody who wants to
serve first and lead second.
Chapter 9 / Slide 119
Copyright © 2017 Pearson Canada Inc.
Characteristics of Servant
Leaders
• There are six characteristics of servant leaders:
– Empowering and developing people
– Humility
– Authenticity
– Interpersonal acceptance
– Providing direction
– Stewardship
Chapter 9 / Slide 120
Copyright © 2017 Pearson Canada Inc.
Servant Leadership (continued)
• Servant leadership is positively related to trust
in management and perceptions of
organizational justice as well as more positive
work attitudes and higher OCBs.
• Employees in departments that had servant
leaders were found to have higher perceptions
of being treated fairly and were more likely to
exhibit helping behaviours.
Chapter 9 / Slide 121
Copyright © 2017 Pearson Canada Inc.
Gender and Leadership
• Do men and women adopt different leadership
styles?
Chapter 9 / Slide 122
Copyright © 2017 Pearson Canada Inc.
Gender and Leadership
(continued)
• Women have a tendency to be more
participative or democratic than men.
• Women leaders have been found to be more
transformational than men leaders, and to also
engage in more of the contingent reward
behaviours of transactional leadership.
Chapter 9 / Slide 123
Copyright © 2017 Pearson Canada Inc.
Gender and Leadership
(continued)
• Men leaders engaged in more management by
exception and laissez-faire leadership which is
a passive form of leadership that involves
avoidance or absence of leadership and is
negatively related to leader effectiveness.
• These findings attest to the ability of women to
be highly effective leaders.
• So do men and women differ in leadership
effectiveness?
Chapter 9 / Slide 124
Copyright © 2017 Pearson Canada Inc.
Gender and Leadership
(continued)
• A review of 95 studies found that there are
some differences but only in certain situations
such as whether an organization is male or
female dominated.
• When various factors are taken into account
men and women do not differ in perceived
leadership effectiveness.
Chapter 9 / Slide 125
Copyright © 2017 Pearson Canada Inc.
Women and Leadership
• Women hold very few top leadership positions
in Canadian organizations.
• Women also hold a minority of senior leadership
positions in the United States and Europe.
• How can we explain this obvious gender bias in
leadership?
Chapter 9 / Slide 126
Copyright © 2017 Pearson Canada Inc.
Women and Leadership
(continued)
• For decades the explanation has been the glass
ceiling metaphor – the invisible barrier that
prevents women from advancing to senior
leadership positions in organizations.
Chapter 9 / Slide 127
Copyright © 2017 Pearson Canada Inc.
Women and Leadership
(continued)
• According to Alice Eagly and Linda Carli, a more
accurate metaphor is a labyrinth because of the
many twists, turns, detours, and dead ends that
women encounter along their way up the
organizational hierarchy.
• It is the sum of all of the barriers women face
rather than one particular barrier.
• It can also be explained by role congruity theory
(RCT).
Chapter 9 / Slide 128
Copyright © 2017 Pearson Canada Inc.
Role Congruity Theory
• Prejudice against female leaders is the result of
an incongruity between the perceived
characteristics of women and the perceived
requirements of leadership roles.
• Leaders are perceived as similar to men and not
very similar to women.
• Men are perceived as having agentic traits while
women are perceived as having communal
traits.
Chapter 9 / Slide 129
Copyright © 2017 Pearson Canada Inc.
Agentic and Communal Traits
• Men are perceived as having agentic traits,
which convey assertion and control and are
generally associated with effective leadership.
• Women are perceived as having communal
traits, which convey a concern for the
compassionate treatment of others.
• What can organizations do to increase the
number of women in senior leadership
positions?
Chapter 9 / Slide 130
Copyright © 2017 Pearson Canada Inc.
Women and Leadership
(continued)
• A combination of programs and interventions is
required such as reducing the subjectivity of
performance evaluations and establishing family
friendly human resource practices.
Chapter 9 / Slide 131
The Advancement of Women in
Organizations
Copyright © 2017 Pearson Canada Inc.
Chapter 9 / Slide 132
Copyright © 2017 Pearson Canada Inc.
Culture and Leadership
• Are various leadership styles equally effective
across cultures?
Chapter 9 / Slide 133
Copyright © 2017 Pearson Canada Inc.
Culture and Leadership
(continued)
• The Global Leadership and Organizational
Behaviour Effectiveness (GLOBE) research
project is the most extensive and ambitious
study ever undertaken on global leadership.
Chapter 9 / Slide 134
Copyright © 2017 Pearson Canada Inc.
The GLOBE Project
• Identified nine cultural dimensions that
distinguish one society from another.
• Based on these cultural dimensions, they
identified 10 culture clusters.
• The culture clusters differ with respect to how
they score on the nine cultural dimensions.
Chapter 9 / Slide 135
Copyright © 2017 Pearson Canada Inc.
Cultural Dimensions from the
GLOBE Project
• Performance Orientation
• Assertiveness
• Future Orientation
• Humane Orientation
• Institutional Collectivism
• In-Group Collectivism
• Gender Egalitarianism
• Power Distance
• Uncertainty Avoidance
Chapter 9 / Slide 136
Copyright © 2017 Pearson Canada Inc.
The GLOBE Project (continued)
• GLOBE wanted to know if the same attributes
that lead to successful leadership in one
country lead to success in other countries?
• Citizens in each nation have implicit
assumptions regarding requisite leadership
qualities, something known as implicit
leadership theory.
Chapter 9 / Slide 137
Copyright © 2017 Pearson Canada Inc.
Implicit Leadership Theory
• A theory that states that individuals hold a set
of beliefs about the kinds of attributes,
personality characteristics, skills, and
behaviours that contribute to or impede
outstanding leadership.
• Culturally endorsed implicit leadership theory
(CLT) refers to belief systems that are shared
among individuals in common cultures.
Chapter 9 / Slide 138
Copyright © 2017 Pearson Canada Inc.
Global Leadership Dimensions
• Global leadership dimensions that are
contributors to or inhibitors of outstanding
leadership:
– Charismatic/Value-Based
– Team-Oriented
– Participative
– Humane-Oriented
– Autonomous
– Self-Protective
Chapter 9 / Slide 139
Copyright © 2017 Pearson Canada Inc.
Global Leadership Dimensions
(continued)
• Leadership profiles for each national culture
and clusters of cultures were created based on
scores on the six global leadership dimensions.
• Cultures and clusters differ significantly on all
six of the global leadership dimensions.
• Canada and the U.S. score high on the
charismatic/value-based, participative, and
humane oriented dimensions, and low on the
self-protective dimension, and medium on the
team-oriented and autonomous dimensions.
Chapter 9 / Slide 140
Copyright © 2017 Pearson Canada Inc.
Leader Attributes
• Many leader attributes such as being honest,
decisive, motivational, and dynamic were found
to be universally desirable and believed to
facilitate outstanding leadership in all GLOBE
countries.
• Some leader attributes such as being loners,
irritable, egocentric, and ruthless are
ineffective in all GLOBE countries.
• Some attributes are culturally contingent – they
are effective in some cultures but are either
ineffective or dysfunctional in others.
Chapter 9 / Slide 141
Copyright © 2017 Pearson Canada Inc.
Cultural Views of Leadership
Effectiveness from the GLOBE Project
Chapter 9 / Slide 142
Copyright © 2017 Pearson Canada Inc.
The GLOBE Project (continued)
• The results of the GLOBE project show that
while there are similarities across cultures in
terms of what are considered to be desirable
and undesirable leadership attributes, there are
also important differences.
• Managers need to understand the similarities
and differences in what makes someone an
effective leader across cultures if they are to
be effective global leaders.
Chapter 9 / Slide 143
Copyright © 2017 Pearson Canada Inc.
Global Leadership
• Global leadership involves having leadership
capabilities required to function effectively in
different cultures and the ability to cross
language, social, economic, and political
borders.
• The essence of global leadership is the ability to
influence people who are not like the leader
and come from different cultural backgrounds.
Chapter 9 / Slide 144
Copyright © 2017 Pearson Canada Inc.
Global Leadership (continued)
• Global leaders need to have a global mindset,
tolerate high levels of ambiguity, and exhibit
cultural adaptability and flexibility.
• Global leaders have four characteristics:
– Unbridled inquisitiveness
– Personal character
– Duality
– Savvy
Chapter 9 / Slide 145
Copyright © 2017 Pearson Canada Inc.
Unbridled Inquisitiveness
• Global leaders must be able to function
effectively in different cultures in which they
are required to cross language, social,
economic, and political borders.
• They relish the opportunity to see and
experience new things.
Chapter 9 / Slide 146
Copyright © 2017 Pearson Canada Inc.
Personal Character
• This involves an emotional connection to people
from different cultures and uncompromising
integrity.
Chapter 9 / Slide 147
Copyright © 2017 Pearson Canada Inc.
Duality
• Duality means that global leaders must be able
to manage uncertainty and balance global and
local tensions.
Chapter 9 / Slide 148
Copyright © 2017 Pearson Canada Inc.
Savvy
• Global leaders need to have business and
organization savvy.
• They need to understand the conditions they
face in different countries and be informed of
their organization’s capabilities and
international ventures.
Chapter 9 / Slide 149
Copyright © 2017 Pearson Canada Inc.
Global Leadership (continued)
• Individuals with the potential to become global
leaders:
– Have experience working or living in
different cultures.
– Speak more than one language.
– Have an aptitude for global business.
Chapter 9 / Slide 150
Copyright © 2017 Pearson Canada Inc.
Global Leadership (continued)
• Becoming an effective global leader requires
extensive training that consists of:
– Travel to foreign countries
– Teamwork with members of diverse
backgrounds
– Formal training programs
– Transfer and overseas assignments
• Long-term international assignments are
considered to be especially effective.
Chapter 9 / Slide 151
Copyright © 2017 Pearson Canada Inc.
Global Leadership (continued)
• Many organizations do not have enough global
leaders now or for the future and they do not
have a system in place for developing them.
• Certain countries produce more global leaders
than others.
Chapter 9 / Slide 152
Copyright © 2017 Pearson Canada Inc.
Global Leadership (continued)
• Countries that are considered to be the most
global in terms of their involvement in world
trade and investment such as Canada, tend to
produce more global leaders than others given
their size.
• They are middle-economy countries that are
dependent on foreign trade.
• Living in a multicultural environment like
Canada is excellent preparation for becoming a
global manager.
Chapter 9 / Slide 153
Copyright © 2017 Pearson Canada Inc.
What Style of Leadership is Best?
• An effective leader needs to be capable of using
different styles of leadership.
• The key issue is knowing what style of
leadership is required in each situation that a
leader encounters.
• Key situational variables include the nature of
the task, employee characteristics,
characteristics of the organization, and national
culture.
• Leadership will be effective when the style is
matched to the situation.
Chapter 9 / Slide 154
Copyright © 2017 Pearson Canada Inc.
Leadership Styles, Situational
Factors, and Effectiveness

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chapter 9 leadership qualityies university of windsor

  • 1. Chapter 9 / Slide 1 Copyright © 2017 Pearson Canada Inc. Chapter 9 Leadership
  • 2. Chapter 9 / Slide 2 Copyright © 2017 Pearson Canada Inc. What Is Leadership? • The influence that particular individuals exert on the goal achievement of others in an organizational context. • Effective leadership exerts influence in a way that achieves organizational goals by enhancing the productivity, innovation, satisfaction, and commitment of the workforce.
  • 3. Chapter 9 / Slide 3 Copyright © 2017 Pearson Canada Inc. What Is Leadership? (continued) • Leadership is about motivating people and gaining their commitment. • Leadership has a strong effect on an organization’s strategy, success, and very survival.
  • 4. Chapter 9 / Slide 4 Copyright © 2017 Pearson Canada Inc. Strategic Leadership • Leadership that involves the ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization. • Strategic leaders are open and honest in their interactions with the organization’s stakeholders, and they focus on the future.
  • 5. Chapter 9 / Slide 5 Copyright © 2017 Pearson Canada Inc. Formal Leadership • Individuals with titles such as manager, executive, supervisor, and department head occupy formal or assigned leadership roles. • They are expected to influence others, and they are given specific authority to direct employees. • Some managers and supervisors fail to exert any influence on others. • Leadership involves going beyond formal role requirements to influence others.
  • 6. Chapter 9 / Slide 6 Copyright © 2017 Pearson Canada Inc. Informal Leadership • Individuals might also emerge to occupy informal leadership roles. • They do not have formal authority. • They must rely on being well liked or being perceived as highly skilled to exert influence.
  • 7. Chapter 9 / Slide 7 Copyright © 2017 Pearson Canada Inc. Are Leaders Born? The Trait Theory of Leadership • Leadership depends on the personal qualities or traits of the leader. • Based on the assumption that those who become leaders and do a good job of it possess a special set of traits that distinguish them from the masses of followers.
  • 8. Chapter 9 / Slide 8 Copyright © 2017 Pearson Canada Inc. Research on Leadership Traits • The search for leadership traits began during World War I. • Traits are individual characteristics such as physical attributes, intellectual ability, and personality. • Many traits are not associated with whether people become leaders or how effective they are as leaders. • However, some traits are associated with leadership.
  • 9. Chapter 9 / Slide 9 Copyright © 2017 Pearson Canada Inc. Traits Associated with Leadership Effectiveness
  • 10. Chapter 9 / Slide 10 Copyright © 2017 Pearson Canada Inc. Research on Leadership Traits • All five of the “Big Five” dimensions of personality are related to leadership emergence and success. • Of the “Big Five,” extraversion and conscientiousness are the most consistent predictors of leadership effectiveness. • Intelligence is related to leadership effectiveness, however, the relationship is lower than previously thought.
  • 11. Chapter 9 / Slide 11 Copyright © 2017 Pearson Canada Inc. Research on Leadership Traits (continued) • The relationship between traits and leadership effectiveness is stronger for affective and relational measures of effectiveness than for performance-related measures. • The trait approach is not the best means of understanding and improving leadership.
  • 12. Chapter 9 / Slide 12 Copyright © 2017 Pearson Canada Inc. Limitations of the Trait Approach • It is difficult to determine whether traits make the leader or whether the opportunity for leadership produces the traits. • Does not tell us what leaders do to influence others successfully. • It can lead to bias and discrimination when evaluating a leader’s effectiveness and when making decisions about promoting people to leadership positions.
  • 13. Chapter 9 / Slide 13 Copyright © 2017 Pearson Canada Inc. Limitations of the Trait Approach (continued) • Leadership categorization theory: People are more likely to view somebody as a leader and to evaluate them as a more effective leader when they possess prototypical characteristics of leadership. • The most crucial problem is that it does not take into account the situation in which leadership occurs.
  • 14. Chapter 9 / Slide 14 Copyright © 2017 Pearson Canada Inc. Limitations of the Trait Approach: Summary • Traits alone are not sufficient for successful leadership. • Traits are only a precondition for certain actions that a leader must take in order to be successful. • Leader behaviours have a greater impact on leadership effectiveness than leader traits.
  • 15. Chapter 9 / Slide 15 Copyright © 2017 Pearson Canada Inc. The Behaviour of Leaders • What are the crucial behaviours leaders engage in, and how do these behaviours influence employee performance and satisfaction? • Is there a particular leadership style that is more effective than other styles?
  • 16. Chapter 9 / Slide 16 Copyright © 2017 Pearson Canada Inc. Ohio State University Leadership Study • The most involved, systematic study of leadership took place at Ohio State University in the 1940s. • Employees described their superiors along a number of behavioural dimensions. • The results revealed two basic kinds of behaviour: – Consideration – Initiating structure
  • 17. Chapter 9 / Slide 17 Copyright © 2017 Pearson Canada Inc. Consideration • The extent to which a leader is approachable and shows personal concern and respect for employees. • The considerate leader is seen as friendly and egalitarian, expresses appreciation and support, and is protective of group welfare.
  • 18. Chapter 9 / Slide 18 Copyright © 2017 Pearson Canada Inc. Initiating Structure • The degree to which a leader concentrates on group goal attainment. • The structuring leader clearly defines and organizes his or her role and the roles of followers, stresses standard procedures, schedules the work to be done, and assigns employees to particular tasks.
  • 19. Chapter 9 / Slide 19 Copyright © 2017 Pearson Canada Inc. The Consequences of Consideration and Structure • Consideration and initiating structure both contribute positively to employees’ motivation, job satisfaction, and leader effectiveness. • Consideration is more strongly related to follower satisfaction, motivation, and leader effectiveness.
  • 20. Chapter 9 / Slide 20 Copyright © 2017 Pearson Canada Inc. The Consequences of Consideration and Structure (continued) • Initiating structure is slightly more strongly related to leader job performance and group performance. • The relative importance of consideration and initiating structure varies according to the nature of the leadership situation.
  • 21. Chapter 9 / Slide 21 Copyright © 2017 Pearson Canada Inc. The Consequences of Consideration and Structure: The Nature of the Situation • The effects of consideration and initiating structure depend on characteristics of the task, the employee, and the setting in which work is performed.
  • 22. Chapter 9 / Slide 22 Copyright © 2017 Pearson Canada Inc. Leader Reward and Punishment Behaviours • Leader reward behaviour provides employees with compliments, tangible benefits, and deserved special treatment. • When such rewards are made contingent on performance, employees should perform at a high level and experience job satisfaction.
  • 23. Chapter 9 / Slide 23 Copyright © 2017 Pearson Canada Inc. Leader Reward and Punishment Behaviours (continued) • Leader punishment behaviour involves the use of reprimands or unfavourable task assignments and the active withholding of raises, promotions, and other rewards. • When punishment is perceived as random and not contingent on employee behaviour, employees react negatively with great dissatisfaction.
  • 24. Chapter 9 / Slide 24 Copyright © 2017 Pearson Canada Inc. Leader Reward and Punishment Behaviours: Research • Contingent leader reward and punishment behaviour is positively related to employees’ perceptions, attitudes, and behaviour. • Non-contingent punishment behaviour is related to unfavourable outcomes. • Relationships are much stronger when rewards and punishment are made contingent on employee behaviour.
  • 25. Chapter 9 / Slide 25 Copyright © 2017 Pearson Canada Inc. Leader Reward and Punishment Behaviours: Research (continued) • The manner in which leaders administer rewards and punishment is a critical determinant of their effectiveness. • Leader reward and punishment behaviours are related to employee attitudes and behaviours because they lead to more positive perceptions of justice and lower role ambiguity.
  • 26. Chapter 9 / Slide 26 Copyright © 2017 Pearson Canada Inc. Situational Theories of Leadership • The situation refers to the setting in which influence attempts occur. • The basic premise of situational theories of leadership is that the effectiveness of a leadership style is contingent on the setting.
  • 27. Chapter 9 / Slide 27 Copyright © 2017 Pearson Canada Inc. Situational Theories of Leadership (continued) • The setting includes the characteristics of the employees, the nature of the task they are performing, and characteristics of the organization.
  • 28. Chapter 9 / Slide 28 Copyright © 2017 Pearson Canada Inc. Situational Theories of Leadership (continued) • Two situational theories of leadership that are among the best known and most studied: – Fiedler’s Contingency Theory – House’s Path-Goal Theory
  • 29. Chapter 9 / Slide 29 Copyright © 2017 Pearson Canada Inc. Fiedler’s Contingency Theory • The association between leadership orientation and group effectiveness is contingent on (depends on) the extent to which the situation is favourable for exerting influence. • Some situations are more favourable than others, and these situations require different orientations on the part of the leader.
  • 30. Chapter 9 / Slide 30 Copyright © 2017 Pearson Canada Inc. Leadership Orientation • Leadership orientation is measured by having a leader describe their Least Preferred Co-Worker (LPC). • Least Preferred Co-Worker is a current or past co-worker with whom a leader has had a difficult time accomplishing a task.
  • 31. Chapter 9 / Slide 31 Copyright © 2017 Pearson Canada Inc. Leadership Orientation (continued) • The leader who describes the LPC relatively favourably (a high LPC score) is considered to be relationship oriented. • The leader who describes the LPC unfavourably (a low LPC score) is considered to be task oriented.
  • 32. Chapter 9 / Slide 32 Copyright © 2017 Pearson Canada Inc. Leadership Orientation (continued) • Fiedler has argued that the LPC score reveals a personality trait that reflects the leader’s motivational structure. • The LPC score is not a measure of consideration or initiating structure which are observed behaviours. • The LPC score is an attitude of the leader toward work relationships.
  • 33. Chapter 9 / Slide 33 Copyright © 2017 Pearson Canada Inc. Situational Favourableness • Situational favourableness is the “contingency” part of contingency theory. • It specifies when a particular LPC orientation should contribute most to group effectiveness.
  • 34. Chapter 9 / Slide 34 Copyright © 2017 Pearson Canada Inc. Situational Favourableness (continued) • Factors that affect situational favourableness, in order of importance, are the following: – Leader-member relations – Task structure – Position power
  • 35. Chapter 9 / Slide 35 Copyright © 2017 Pearson Canada Inc. Situational Favourableness (continued) • The situation is most favourable for leadership when: – Leader-member relations are good – The task is structured – The leader has strong position power
  • 36. Chapter 9 / Slide 36 Copyright © 2017 Pearson Canada Inc. Situational Favourableness (continued) • The situation is least favourable for leadership when: – Leader-member relations are poor – The task is unstructured – The leader has weak position power
  • 37. Chapter 9 / Slide 37 Copyright © 2017 Pearson Canada Inc. Predictions of Leader Effectiveness from Fiedler’s Contingency Theory of Leadership
  • 38. Chapter 9 / Slide 38 Copyright © 2017 Pearson Canada Inc. Fiedler’s Contingency Theory (continued) • The model indicates that a task orientation (low LPC) is most effective when the leadership situation is very favourable or when it is very unfavourable. • A relationship orientation (high LPC) is most effective in conditions of medium favourability.
  • 39. Chapter 9 / Slide 39 Copyright © 2017 Pearson Canada Inc. Contingency Theory: Research Evidence • Contingency theory has been the subject of much debate. • The exact meaning of the LPC score is not clear. • A major source of the many inconsistent findings is the small sample sizes used in many studies. • Recent reviews have concluded that there is reasonable support for contingency theory.
  • 40. Chapter 9 / Slide 40 Copyright © 2017 Pearson Canada Inc. House’s Path-Goal Theory • Robert House’s theory is concerned with the situations under which various leader behaviours are most effective. • Path-Goal Theory is concerned with leader behaviours. • Why did House choose the name “path-goal” for his theory?
  • 41. Chapter 9 / Slide 41 Copyright © 2017 Pearson Canada Inc. The Theory • The most important activities of leaders are those that clarify the paths to various goals of interest to employees. • The opportunity to achieve such goals should promote job satisfaction, leader acceptance, and high effort. • The effective leader forms a connection between employee goals and organizational goals.
  • 42. Chapter 9 / Slide 42 Copyright © 2017 Pearson Canada Inc. The Theory (continued) • To achieve job satisfaction and leader acceptance, leader behaviour must be perceived as immediately satisfying or as leading to future satisfaction. • To promote employee effort, leaders must make rewards dependent on performance and ensure that employees have a clear picture of how they can achieve these rewards.
  • 43. Chapter 9 / Slide 43 Copyright © 2017 Pearson Canada Inc. Leader Behaviour • Path-Goal Theory is concerned with four specific kinds of leader behaviour: – Directive behaviour – Supportive behaviour – Participative behaviour – Achievement-oriented behaviour
  • 44. Chapter 9 / Slide 44 Copyright © 2017 Pearson Canada Inc. Directive Behaviour • Directive leaders schedule work, maintain performance standards, and let employees know what is expected of them. • It is identical to initiating structure.
  • 45. Chapter 9 / Slide 45 Copyright © 2017 Pearson Canada Inc. Supportive Behaviour • Supportive leaders are friendly, approachable, and concerned with pleasant interpersonal relationships. • It is identical to consideration.
  • 46. Chapter 9 / Slide 46 Copyright © 2017 Pearson Canada Inc. Participative Behaviour • Participative leaders consult with employees about work-related matters and consider their opinions.
  • 47. Chapter 9 / Slide 47 Copyright © 2017 Pearson Canada Inc. Achievement-Oriented Behaviour • Achievement-oriented leaders encourage employees to exert high effort and strive for a high level of goal accomplishment. • They express confidence that employees can reach these goals.
  • 48. Chapter 9 / Slide 48 Copyright © 2017 Pearson Canada Inc. Situational Factors • The effectiveness of each set of behaviours depends on the situation that the leader encounters. • Path-Goal Theory is concerned with two primary classes of situational factors: – Employee characteristics – Environmental factors
  • 49. Chapter 9 / Slide 49 Copyright © 2017 Pearson Canada Inc. Situational Factors (continued) • The impact of leader behaviour on employee satisfaction, effort, and acceptance of the leader depends on the nature of the employees and the work environment.
  • 50. Chapter 9 / Slide 50 Copyright © 2017 Pearson Canada Inc. The Path-Goal Theory of Leadership
  • 51. Chapter 9 / Slide 51 Copyright © 2017 Pearson Canada Inc. Employee Characteristics • Different types of employees need or prefer different forms of leadership: – High need achievers should work well under achievement-oriented leadership. – Employees who prefer to be told what to do respond best to directive leadership. – When employees have low task abilities, they will appreciate directive leadership.
  • 52. Chapter 9 / Slide 52 Copyright © 2017 Pearson Canada Inc. Environmental Factors • The effectiveness of leadership behaviour depends on the particular work environment: – When tasks are clear and routine, directive leadership is redundant and unnecessary and participative leadership is not useful. – When tasks are challenging but ambiguous, directive and participative leadership is effective. – When a job is frustrating or dissatisfying, supportive leadership is most effective.
  • 53. Chapter 9 / Slide 53 Copyright © 2017 Pearson Canada Inc. Situational Factors (continued) • Leaders might have to tailor their behaviour to the needs, abilities, and personalities of individual employees. • Effective leaders should take advantage of the motivating and satisfying aspects of jobs while offsetting or compensating for those job aspects that demotivate or dissatisfy.
  • 54. Chapter 9 / Slide 54 Copyright © 2017 Pearson Canada Inc. Path-Goal Theory: Research Evidence • There is substantial evidence that supportive or considerate leader behaviour is most beneficial in supervising routine, frustrating, or dissatisfying jobs. • There is some evidence that directive or structuring leader behaviour is most effective on ambiguous, less-structured jobs.
  • 55. Chapter 9 / Slide 55 Copyright © 2017 Pearson Canada Inc. Path-Goal Theory: Research Evidence (continued) • The theory works better in predicting employees’ job satisfaction and acceptance of the leader than in predicting job performance.
  • 56. Chapter 9 / Slide 56 Copyright © 2017 Pearson Canada Inc. Participative Leadership: Involving Employees in Decisions • Participative leadership is one of the leader behaviours in path-goal theory. • It is an important leadership style and deserves further attention.
  • 57. Chapter 9 / Slide 57 Copyright © 2017 Pearson Canada Inc. What is Participative Leadership? • Participative leadership means involving employees in making work-related decisions. • Leaders can vary in the extent to which they involve employees in decision making. • Minimally, participation involves obtaining employee opinions before making a decision. • Maximally, it allows employees to make their own decisions within agreed-on limits.
  • 58. Chapter 9 / Slide 58 Copyright © 2017 Pearson Canada Inc. Employee Participation in Decision Making
  • 59. Chapter 9 / Slide 59 Copyright © 2017 Pearson Canada Inc. What is Participative Leadership? (continued) • Participation can involve individual employees or the entire group of employees that reports to the leader. • The choice of an individual or group participation strategy should be tailored to specific situations.
  • 60. Chapter 9 / Slide 60 Copyright © 2017 Pearson Canada Inc. Potential Advantages of Participative Leadership • What are the potential advantages of participation as a leadership technique? – Motivation – Quality – Acceptance
  • 61. Chapter 9 / Slide 61 Copyright © 2017 Pearson Canada Inc. Motivation • Participation can increase the motivation of employees. • Participation can permit employees to contribute to the establishment of work goals and how to accomplish them. • Participation can increase intrinsic motivation by enriching jobs.
  • 62. Chapter 9 / Slide 62 Copyright © 2017 Pearson Canada Inc. Quality • Participation can enhance the quality of decisions. • “Two heads are better than one.” • Participation can also enhance quality because it empowers employees to take direct action and solve problems.
  • 63. Chapter 9 / Slide 63 Copyright © 2017 Pearson Canada Inc. Acceptance • Participation can increase employees’ acceptance of decisions. • This is especially important when issues of fairness are involved.
  • 64. Chapter 9 / Slide 64 Copyright © 2017 Pearson Canada Inc. Potential Problems of Participative Leadership • What are the potential disadvantages of participation as a leadership technique? – Time and energy – Loss of power – Lack of receptivity or knowledge
  • 65. Chapter 9 / Slide 65 Copyright © 2017 Pearson Canada Inc. Time and Energy • Participation requires specific behaviours on the part of the leader that use time and energy.
  • 66. Chapter 9 / Slide 66 Copyright © 2017 Pearson Canada Inc. Loss of Power • Some leaders feel that a participative style will reduce their power and influence. • Sometimes leaders respond by asking employees to make trivial decisions.
  • 67. Chapter 9 / Slide 67 Copyright © 2017 Pearson Canada Inc. Lack of Receptivity or Knowledge • Employees might not be receptive to participation when the leader is not trusted or when a poor labour climate exists. • Employees might lack the knowledge to contribute effectively to decisions and might not be aware of external constraints on their decisions.
  • 68. Chapter 9 / Slide 68 Copyright © 2017 Pearson Canada Inc. Vroom and Jago’s Situational Model of Participation • Victor Vroom and Arthur Jago developed a model that attempts to specify in a practical manner when leaders should use participation and to what extent they should use it. • They began with the recognition that there are various degrees of participation that a leader can exhibit.
  • 69. Chapter 9 / Slide 69 Copyright © 2017 Pearson Canada Inc. Vroom and Jago’s Situational Model of Participation (continued) • For issues involving the entire work group, a range of decision making strategies is plausible: – A stands for autocratic – C for consultative – G for group
  • 70. Chapter 9 / Slide 70 Copyright © 2017 Pearson Canada Inc. Autocratic Strategies • AI: You solve the problem or make the decision yourself. • AII: You obtain the necessary information from your employees, then decide the solution to the problem yourself.
  • 71. Chapter 9 / Slide 71 Copyright © 2017 Pearson Canada Inc. Consultative Strategies • CI: You share the problem with the relevant employees individually, getting their ideas and suggestions, then you make the decision. • CII: You share the problem with your employees as a group, obtaining their collective ideas and suggestions, then you make the decision.
  • 72. Chapter 9 / Slide 72 Copyright © 2017 Pearson Canada Inc. Group Strategy • GII: You share the problem with your employees as a group and together you generate and evaluate alternatives and attempt to reach agreement (consensus) on a solution. • Which of these strategies is most effective?
  • 73. Chapter 9 / Slide 73 Copyright © 2017 Pearson Canada Inc. Vroom and Jago’s Situational Model of Participation (continued) • The most effective strategy depends on the situation or problem at hand. • The leader’s goal should be to make high- quality decisions to which employees will be adequately committed without undue delay. • To do this, the leader must consider questions in a decision tree.
  • 74. Chapter 9 / Slide 74 Copyright © 2017 Pearson Canada Inc. Vroom and Jago’s Situational Model of Participation (continued) • The questions consider decision quality, subordinate commitment, and problem structure. • The questions are oriented toward preserving either decision quality or commitment to the decision. • By tracing a problem through the decision tree, the leader encounters the prescribed degree of participation for that problem.
  • 75. Chapter 9 / Slide 75 Copyright © 2017 Pearson Canada Inc. Vroom and Jago Decision Tree Questions • QR: How important is the technical quality of this decision? (quality requirement) • CR: How important is subordinate commitment to the decision? (commitment requirement) • LI: Do you have sufficient information to make a high-quality decision? • ST: Is the problem well-structured?
  • 76. Chapter 9 / Slide 76 Copyright © 2017 Pearson Canada Inc. Vroom and Jago Decision Tree Questions (continued) • CP: If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to the decision? • GC: Do subordinates share the organizational goals to be attained in solving the problem?
  • 77. Chapter 9 / Slide 77 Copyright © 2017 Pearson Canada Inc. Vroom and Jago Decision Tree Questions (continued) • CO: Is conflict among subordinates over preferred solutions likely? • SI: Do subordinates have sufficient information to make a high-quality decision?
  • 78. Chapter 9 / Slide 78 Copyright © 2017 Pearson Canada Inc. Vroom and Jago’s Situational Model of Participation (continued) • By tracing the problem through the decision tree, the leader encounters the prescribed degree of participation for that problem. • The tree shows the fastest approach possible that still maintains decision quality and commitment. • If a leader is willing to sacrifice some speed, a more participative approach could stimulate employee development.
  • 79. Chapter 9 / Slide 79 Copyright © 2017 Pearson Canada Inc. The Vroom and Jago Decision Tree for Participative Leadership
  • 80. Chapter 9 / Slide 80 Copyright © 2017 Pearson Canada Inc. Vroom and Jago Model: Research Evidence • The model has substantial research support. • Following the model’s prescriptions is more likely to lead to successful managerial decisions than unsuccessful decisions. • But does participative leadership result in beneficial outcomes?
  • 81. Chapter 9 / Slide 81 Copyright © 2017 Pearson Canada Inc. Participative Leadership: Research Evidence • There is substantial evidence that employees who have the opportunity to participate in work-related decisions report more job satisfaction, higher task performance, and organizational citizenship behaviour toward the organization than those who do not. • These results are partly due to a positive effect on employee empowerment and trust in one’s supervisor.
  • 82. Chapter 9 / Slide 82 Copyright © 2017 Pearson Canada Inc. Participative Leadership: Research Evidence (continued) • Most workers seem to prefer a participative work environment. • However, for participation to be translated into higher productivity, certain facilitating conditions must exist. • When will participation work best?
  • 83. Chapter 9 / Slide 83 Copyright © 2017 Pearson Canada Inc. Conditions for Participation • Participation should work best when: – Employees feel favourably toward it. – Employees are intelligent and knowledgeable about the issue at hand. – When the task is complex enough to make participation useful. • These conditions are incorporated into the Vroom and Jago model.
  • 84. Chapter 9 / Slide 84 Copyright © 2017 Pearson Canada Inc. Leader-Member Exchange (LMX) Theory • A theory of leadership that focuses on the relationship that develops between a leader and an employee. • It is a social exchange relationship-based approach to leadership.
  • 85. Chapter 9 / Slide 85 Copyright © 2017 Pearson Canada Inc. Leader-Member Exchange (LMX) Theory (continued) • Effective leadership processes result when leaders and employees develop and maintain high-quality social exchange relationships. • The basis for the effects of LMX is social exchange theory and the norm of reciprocity.
  • 86. Chapter 9 / Slide 86 Copyright © 2017 Pearson Canada Inc. Social Exchange Theory • Individuals who are treated favourably by others feel obliged to reciprocate by responding positively and returning that favourable treatment in some manner. • Employees in a high-quality relationship with their supervisor will reciprocate with extra effort and higher commitment and performance.
  • 87. Chapter 9 / Slide 87 Copyright © 2017 Pearson Canada Inc. Leader-Member Exchange (LMX) Theory (continued) • High LMX involves a high degree of mutual influence and obligation as well as trust, loyalty, open communication, and respect between a leader and an employee. • In high-quality relationships, employees perform tasks beyond their job descriptions.
  • 88. Chapter 9 / Slide 88 Copyright © 2017 Pearson Canada Inc. Leader-Member Exchange (LMX) Theory (continued) • Low LMX is characterized by low trust, respect, obligation, and mutual support. • In low-quality relationships, the leader provides less attention and latitude to employees. • Employees do only what their job descriptions and formal role requirements demand.
  • 89. Chapter 9 / Slide 89 Copyright © 2017 Pearson Canada Inc. Leader-Member Exchange (LMX) Theory: Research Evidence • Employees with higher quality LMX have higher self-efficacy, more positive work attitudes, and higher OCB and job performance. • Higher-quality LMX relationships result in positive outcomes for leaders, employees, work units, and organizations.
  • 90. Chapter 9 / Slide 90 Copyright © 2017 Pearson Canada Inc. Transactional Leadership • Transactional leadership is leadership that is based on a straightforward exchange relationship between a leader and followers. • Transactional leadership behaviour involves: – Contingent reward behaviour (leader reward behaviour) – Management by exception
  • 91. Chapter 9 / Slide 91 Copyright © 2017 Pearson Canada Inc. Management By Exception • Leadership that involves the leader taking corrective action on the basis of the results of leader-follower transactions. • The leader monitors follower behaviour, anticipates problems, and takes corrective actions before the behaviour creates serious problems.
  • 92. Chapter 9 / Slide 92 Copyright © 2017 Pearson Canada Inc. Transformational Leadership • Transformational leadership is leadership that provides followers with a new vision that instills true commitment. • Transformational leaders change the beliefs and attitudes of followers to correspond with a new vision and motivates them to achieve performance beyond expectations.
  • 93. Chapter 9 / Slide 93 Copyright © 2017 Pearson Canada Inc. Transformational Leaders • Popular examples of transformational leaders: Herb Kelleher, Michael Eisner, Steven Jobs, and Carly Fiorina. • Transformational leaders are usually good at the transactional aspects of clarifying the paths to goals and rewarding good performance. • What are the behaviours of these transformational leaders who encourage considerable effort and dedication on the part of followers?
  • 94. Chapter 9 / Slide 94 Copyright © 2017 Pearson Canada Inc. Behaviours of Transformational Leadership • There are four key dimensions of transformational leader behavour: – Intellectual stimulation – Individualized consideration – Inspirational motivation – Charisma
  • 95. Chapter 9 / Slide 95 Copyright © 2017 Pearson Canada Inc. Intellectual Stimulation • People are stimulated to think about problems, issues, and strategies in new ways. • This contributes to the “new vision” aspect of transformational leadership. • The leader challenges assumptions, takes risks, and solicits followers’ ideas. • It often involves creativity and novelty.
  • 96. Chapter 9 / Slide 96 Copyright © 2017 Pearson Canada Inc. Individualized Consideration • This involves treating employees as distinct individuals, indicating concern for their needs and personal development, and serving as a mentor or coach when appropriate. • The emphasis is a one-on-one attempt to meet the concerns and needs of the individual in question in the context of the overall goal or mission.
  • 97. Chapter 9 / Slide 97 Copyright © 2017 Pearson Canada Inc. Inspirational Motivation • This involves the communication of visions that are appealing and inspiring to followers. • Leaders with inspirational motivation have a strong vision for the future based on values and ideals. • They stimulate enthusiasm, challenge followers with high standards, communicate optimism about future goal attainment, and provide meaning for the task at hand. • They inspire followers using symbolic actions and persuasion.
  • 98. Chapter 9 / Slide 98 Copyright © 2017 Pearson Canada Inc. Charisma • The ability to command strong loyalty and devotion from followers and thus have the potential for strong influence among them. • This is the most important aspect of transformational leadership. • Charisma provides the emotional aspect of transformational leadership. • The emergence of charisma is a complex function of traits, behaviours, and being in the right place at the right time.
  • 99. Chapter 9 / Slide 99 Copyright © 2017 Pearson Canada Inc. Transformational Leadership: Research Evidence • Transformational leadership is strongly related to follower motivation and satisfaction, leader performance, leader effectiveness, and individual, group, and organization performance. • Charismatic leadership has also been found to be strongly related to follower satisfaction and leadership effectiveness.
  • 100. Chapter 9 / Slide 100 Copyright © 2017 Pearson Canada Inc. Transformational Leadership: Research Evidence (continued) • Compared to other forms of leader behaviour, transformational leadership has been found to be the most consistent predictor of effective leadership. • Some evidence that CEO transformational leadership is positively related to firm performance, especially when the environment is uncertain, and to levels of organizational commitment.
  • 101. Chapter 9 / Slide 101 Copyright © 2017 Pearson Canada Inc. Transformational Leadership: Research Evidence (continued) • Transformational leadership is especially effective during times of change and for obtaining employees’ commitment to change. • Overall, the best leaders are both transformational and transactional.
  • 102. Chapter 9 / Slide 102 Copyright © 2017 Pearson Canada Inc. New and Emerging Theories of Leadership • Leadership research has begun to focus on the broader context of the leadership process. • This has led to the emergence of new forms of leadership behaviours and theories: – Empowering leadership – Ethical leadership – Authentic leadership – Servant leadership
  • 103. Chapter 9 / Slide 103 Copyright © 2017 Pearson Canada Inc. Empowering Leadership • Empowering leadership involves implementing conditions that enable power to be shared with employees. • Empowering leaders provide participation and autonomy in decision making. • Employees experience a state of psychological empowerment that consists of feelings of meaning, competence, self-determination, and impact.
  • 104. Chapter 9 / Slide 104 Copyright © 2017 Pearson Canada Inc. Empowering Leadership (continued) • Empowering leadership provides employees with a greater feeling of control over their work and a sense that they can make a difference in their organization’s effectiveness. • Empowering leadership has been found to be positively related to job performance and creativity-relevant behaviours.
  • 105. Chapter 9 / Slide 105 Copyright © 2017 Pearson Canada Inc. Ethical Leadership • Ethical leadership involves the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision- making. • What do ethical leaders do?
  • 106. Chapter 9 / Slide 106 Copyright © 2017 Pearson Canada Inc. Ethical Leader Behaviours • They model what is deemed to be normatively appropriate behaviour (e.g., honesty). • They make ethics salient in the workplace. • They set ethical standards. • They reward ethical behaviour. • They discipline those who don’t follow ethical standards and punish unethical behaviour.
  • 107. Chapter 9 / Slide 107 Copyright © 2017 Pearson Canada Inc. Ethical Leader Behaviours (continued) • Ethical leaders consider the ethical consequences of their decisions. • They care about people and the broader society and seek to do the right thing personally and professionally.
  • 108. Chapter 9 / Slide 108 Copyright © 2017 Pearson Canada Inc. Ethical Leadership (continued) • Ethical leadership is positively related to more favourable evaluations of leaders, more positive job attitudes, and greater performance. • It is negatively related to job strains, turnover intentions, and counterproductive work behaviours. • The relationship between ethical leadership and positive work outcomes is due to trust in the leader.
  • 109. Chapter 9 / Slide 109 Copyright © 2017 Pearson Canada Inc. Ethical Leadership (continued) • The ethical behaviour of leaders has a significant influence on the ethical culture of an organization. • The ethical leadership of immediate supervisors is likely to have the greatest effect on employees.
  • 110. Chapter 9 / Slide 110 Copyright © 2017 Pearson Canada Inc. Authentic Leadership • Authentic leadership is a positive form of leadership that involves being true to oneself. • Authentic leaders know and act upon their true values, beliefs, and strengths, and they help others do the same. • Their conduct and behaviour is guided by their internal values.
  • 111. Chapter 9 / Slide 111 Copyright © 2017 Pearson Canada Inc. Authentic Leadership (continued) • Authentic leadership consists of four related but distinct behaviours: – Self-awareness – Relational transparency – Balanced processing – Internalized moral perspective
  • 112. Chapter 9 / Slide 112 Copyright © 2017 Pearson Canada Inc. Self-Awareness • An accurate understanding of one’s strengths and weaknesses and an awareness of one’s impact on others.
  • 113. Chapter 9 / Slide 113 Copyright © 2017 Pearson Canada Inc. Relational Transparency • The presenting of one’s true or authentic self to others and the open sharing of information and expressions of one’s true thoughts and feelings.
  • 114. Chapter 9 / Slide 114 Copyright © 2017 Pearson Canada Inc. Balanced Processing • The objective analysis of all relevant information before making a decision and consideration of views that challenge one’s own position.
  • 115. Chapter 9 / Slide 115 Copyright © 2017 Pearson Canada Inc. Internalized Moral Perspective • They have internal moral standards and values that guide their behaviour and decision making.
  • 116. Chapter 9 / Slide 116 Copyright © 2017 Pearson Canada Inc. Authentic Leadership (continued) • Followers of authentic leaders have higher: – Organizational commitment – Job satisfaction – Satisfaction with their supervisor – Organizational citizenship behaviour – Work engagement – Ethical and pro-social behaviours
  • 117. Chapter 9 / Slide 117 Copyright © 2017 Pearson Canada Inc. Authentic Leadership (continued) • Authentic leadership has been found to be positively related to the psychological capital of work groups and trust among group members which led to higher group citizenship behaviours and performance. • Team leader authenticity has also been found to be related to team members’ authenticity which was related to higher quality teamwork behaviour and team productivity.
  • 118. Chapter 9 / Slide 118 Copyright © 2017 Pearson Canada Inc. Servant Leadership • Servant leadership is a form of leadership that involves going beyond one’s own self-interests and having a genuine concern to serve others and a motivation to lead. • The focus of servant leadership is a concern for the needs of followers and their growth and development. • A servant leader is somebody who wants to serve first and lead second.
  • 119. Chapter 9 / Slide 119 Copyright © 2017 Pearson Canada Inc. Characteristics of Servant Leaders • There are six characteristics of servant leaders: – Empowering and developing people – Humility – Authenticity – Interpersonal acceptance – Providing direction – Stewardship
  • 120. Chapter 9 / Slide 120 Copyright © 2017 Pearson Canada Inc. Servant Leadership (continued) • Servant leadership is positively related to trust in management and perceptions of organizational justice as well as more positive work attitudes and higher OCBs. • Employees in departments that had servant leaders were found to have higher perceptions of being treated fairly and were more likely to exhibit helping behaviours.
  • 121. Chapter 9 / Slide 121 Copyright © 2017 Pearson Canada Inc. Gender and Leadership • Do men and women adopt different leadership styles?
  • 122. Chapter 9 / Slide 122 Copyright © 2017 Pearson Canada Inc. Gender and Leadership (continued) • Women have a tendency to be more participative or democratic than men. • Women leaders have been found to be more transformational than men leaders, and to also engage in more of the contingent reward behaviours of transactional leadership.
  • 123. Chapter 9 / Slide 123 Copyright © 2017 Pearson Canada Inc. Gender and Leadership (continued) • Men leaders engaged in more management by exception and laissez-faire leadership which is a passive form of leadership that involves avoidance or absence of leadership and is negatively related to leader effectiveness. • These findings attest to the ability of women to be highly effective leaders. • So do men and women differ in leadership effectiveness?
  • 124. Chapter 9 / Slide 124 Copyright © 2017 Pearson Canada Inc. Gender and Leadership (continued) • A review of 95 studies found that there are some differences but only in certain situations such as whether an organization is male or female dominated. • When various factors are taken into account men and women do not differ in perceived leadership effectiveness.
  • 125. Chapter 9 / Slide 125 Copyright © 2017 Pearson Canada Inc. Women and Leadership • Women hold very few top leadership positions in Canadian organizations. • Women also hold a minority of senior leadership positions in the United States and Europe. • How can we explain this obvious gender bias in leadership?
  • 126. Chapter 9 / Slide 126 Copyright © 2017 Pearson Canada Inc. Women and Leadership (continued) • For decades the explanation has been the glass ceiling metaphor – the invisible barrier that prevents women from advancing to senior leadership positions in organizations.
  • 127. Chapter 9 / Slide 127 Copyright © 2017 Pearson Canada Inc. Women and Leadership (continued) • According to Alice Eagly and Linda Carli, a more accurate metaphor is a labyrinth because of the many twists, turns, detours, and dead ends that women encounter along their way up the organizational hierarchy. • It is the sum of all of the barriers women face rather than one particular barrier. • It can also be explained by role congruity theory (RCT).
  • 128. Chapter 9 / Slide 128 Copyright © 2017 Pearson Canada Inc. Role Congruity Theory • Prejudice against female leaders is the result of an incongruity between the perceived characteristics of women and the perceived requirements of leadership roles. • Leaders are perceived as similar to men and not very similar to women. • Men are perceived as having agentic traits while women are perceived as having communal traits.
  • 129. Chapter 9 / Slide 129 Copyright © 2017 Pearson Canada Inc. Agentic and Communal Traits • Men are perceived as having agentic traits, which convey assertion and control and are generally associated with effective leadership. • Women are perceived as having communal traits, which convey a concern for the compassionate treatment of others. • What can organizations do to increase the number of women in senior leadership positions?
  • 130. Chapter 9 / Slide 130 Copyright © 2017 Pearson Canada Inc. Women and Leadership (continued) • A combination of programs and interventions is required such as reducing the subjectivity of performance evaluations and establishing family friendly human resource practices.
  • 131. Chapter 9 / Slide 131 The Advancement of Women in Organizations Copyright © 2017 Pearson Canada Inc.
  • 132. Chapter 9 / Slide 132 Copyright © 2017 Pearson Canada Inc. Culture and Leadership • Are various leadership styles equally effective across cultures?
  • 133. Chapter 9 / Slide 133 Copyright © 2017 Pearson Canada Inc. Culture and Leadership (continued) • The Global Leadership and Organizational Behaviour Effectiveness (GLOBE) research project is the most extensive and ambitious study ever undertaken on global leadership.
  • 134. Chapter 9 / Slide 134 Copyright © 2017 Pearson Canada Inc. The GLOBE Project • Identified nine cultural dimensions that distinguish one society from another. • Based on these cultural dimensions, they identified 10 culture clusters. • The culture clusters differ with respect to how they score on the nine cultural dimensions.
  • 135. Chapter 9 / Slide 135 Copyright © 2017 Pearson Canada Inc. Cultural Dimensions from the GLOBE Project • Performance Orientation • Assertiveness • Future Orientation • Humane Orientation • Institutional Collectivism • In-Group Collectivism • Gender Egalitarianism • Power Distance • Uncertainty Avoidance
  • 136. Chapter 9 / Slide 136 Copyright © 2017 Pearson Canada Inc. The GLOBE Project (continued) • GLOBE wanted to know if the same attributes that lead to successful leadership in one country lead to success in other countries? • Citizens in each nation have implicit assumptions regarding requisite leadership qualities, something known as implicit leadership theory.
  • 137. Chapter 9 / Slide 137 Copyright © 2017 Pearson Canada Inc. Implicit Leadership Theory • A theory that states that individuals hold a set of beliefs about the kinds of attributes, personality characteristics, skills, and behaviours that contribute to or impede outstanding leadership. • Culturally endorsed implicit leadership theory (CLT) refers to belief systems that are shared among individuals in common cultures.
  • 138. Chapter 9 / Slide 138 Copyright © 2017 Pearson Canada Inc. Global Leadership Dimensions • Global leadership dimensions that are contributors to or inhibitors of outstanding leadership: – Charismatic/Value-Based – Team-Oriented – Participative – Humane-Oriented – Autonomous – Self-Protective
  • 139. Chapter 9 / Slide 139 Copyright © 2017 Pearson Canada Inc. Global Leadership Dimensions (continued) • Leadership profiles for each national culture and clusters of cultures were created based on scores on the six global leadership dimensions. • Cultures and clusters differ significantly on all six of the global leadership dimensions. • Canada and the U.S. score high on the charismatic/value-based, participative, and humane oriented dimensions, and low on the self-protective dimension, and medium on the team-oriented and autonomous dimensions.
  • 140. Chapter 9 / Slide 140 Copyright © 2017 Pearson Canada Inc. Leader Attributes • Many leader attributes such as being honest, decisive, motivational, and dynamic were found to be universally desirable and believed to facilitate outstanding leadership in all GLOBE countries. • Some leader attributes such as being loners, irritable, egocentric, and ruthless are ineffective in all GLOBE countries. • Some attributes are culturally contingent – they are effective in some cultures but are either ineffective or dysfunctional in others.
  • 141. Chapter 9 / Slide 141 Copyright © 2017 Pearson Canada Inc. Cultural Views of Leadership Effectiveness from the GLOBE Project
  • 142. Chapter 9 / Slide 142 Copyright © 2017 Pearson Canada Inc. The GLOBE Project (continued) • The results of the GLOBE project show that while there are similarities across cultures in terms of what are considered to be desirable and undesirable leadership attributes, there are also important differences. • Managers need to understand the similarities and differences in what makes someone an effective leader across cultures if they are to be effective global leaders.
  • 143. Chapter 9 / Slide 143 Copyright © 2017 Pearson Canada Inc. Global Leadership • Global leadership involves having leadership capabilities required to function effectively in different cultures and the ability to cross language, social, economic, and political borders. • The essence of global leadership is the ability to influence people who are not like the leader and come from different cultural backgrounds.
  • 144. Chapter 9 / Slide 144 Copyright © 2017 Pearson Canada Inc. Global Leadership (continued) • Global leaders need to have a global mindset, tolerate high levels of ambiguity, and exhibit cultural adaptability and flexibility. • Global leaders have four characteristics: – Unbridled inquisitiveness – Personal character – Duality – Savvy
  • 145. Chapter 9 / Slide 145 Copyright © 2017 Pearson Canada Inc. Unbridled Inquisitiveness • Global leaders must be able to function effectively in different cultures in which they are required to cross language, social, economic, and political borders. • They relish the opportunity to see and experience new things.
  • 146. Chapter 9 / Slide 146 Copyright © 2017 Pearson Canada Inc. Personal Character • This involves an emotional connection to people from different cultures and uncompromising integrity.
  • 147. Chapter 9 / Slide 147 Copyright © 2017 Pearson Canada Inc. Duality • Duality means that global leaders must be able to manage uncertainty and balance global and local tensions.
  • 148. Chapter 9 / Slide 148 Copyright © 2017 Pearson Canada Inc. Savvy • Global leaders need to have business and organization savvy. • They need to understand the conditions they face in different countries and be informed of their organization’s capabilities and international ventures.
  • 149. Chapter 9 / Slide 149 Copyright © 2017 Pearson Canada Inc. Global Leadership (continued) • Individuals with the potential to become global leaders: – Have experience working or living in different cultures. – Speak more than one language. – Have an aptitude for global business.
  • 150. Chapter 9 / Slide 150 Copyright © 2017 Pearson Canada Inc. Global Leadership (continued) • Becoming an effective global leader requires extensive training that consists of: – Travel to foreign countries – Teamwork with members of diverse backgrounds – Formal training programs – Transfer and overseas assignments • Long-term international assignments are considered to be especially effective.
  • 151. Chapter 9 / Slide 151 Copyright © 2017 Pearson Canada Inc. Global Leadership (continued) • Many organizations do not have enough global leaders now or for the future and they do not have a system in place for developing them. • Certain countries produce more global leaders than others.
  • 152. Chapter 9 / Slide 152 Copyright © 2017 Pearson Canada Inc. Global Leadership (continued) • Countries that are considered to be the most global in terms of their involvement in world trade and investment such as Canada, tend to produce more global leaders than others given their size. • They are middle-economy countries that are dependent on foreign trade. • Living in a multicultural environment like Canada is excellent preparation for becoming a global manager.
  • 153. Chapter 9 / Slide 153 Copyright © 2017 Pearson Canada Inc. What Style of Leadership is Best? • An effective leader needs to be capable of using different styles of leadership. • The key issue is knowing what style of leadership is required in each situation that a leader encounters. • Key situational variables include the nature of the task, employee characteristics, characteristics of the organization, and national culture. • Leadership will be effective when the style is matched to the situation.
  • 154. Chapter 9 / Slide 154 Copyright © 2017 Pearson Canada Inc. Leadership Styles, Situational Factors, and Effectiveness