Leadership

MGMT 612 - ICESI Professor Michael Burke

Objectives
Recognize the differences between trait, behavioral, and contingency theories. Describe general leadership styles. Discuss distinctions between transactional and transformational leadership.

Leadership

The process of providing direction and influencing individuals or groups to achieve goals.
Similarly, Kaiser, Hogan, and Craig (2008) define leadership as: 1) Influencing individuals to contribute to the good of the group, and 2) Coordinating and guiding the group to achieve its goals.

Classes of Leadership Theories

Trait Leadership Behavioral Contingency:
Depending on situation

Trait Theories of Leadership

Ambition and Energy Honesty and Integrity Intelligence (IQ) & (EQ) Desire to Lead SelfConfidence Job-Relevant Knowledge

Leadership Attributes Universally Liked and Disliked

(across 62 nations) Positive Leader Attributes
Trustworthy Just Honest Plans ahead Encouraging Intelligent Communicative

Negative Leader Attributes

Asocial Non-cooperative Irritable Non-explicit Egocentric Ruthless Dictatorial

Based on responses from 17,000 middle managers from 951 organizations in 62 countries.

What is the Takeaway from Trait Theories?

Consider the inclusion of personality (Judges work) and other trait assessments in selection and promotion processes. Consider conducting management development programs to create awareness of traits and how they influence behavior.

Behavioral Theories
Concentrated on leadership styles, and identifying behaviors that differentiated between effective and ineffective leaders.
University of Michigan Studies (job-centered and employee-centered styles) Ohio State Univ. Studies (initiating structure and consideration) The Managerial Grid (concern for production and concern for people)

Tended to focus on the one best style.

The Managerial Grid

High Concern 9 8
9,9 style

The best leadership style

Concern for People

7 6 5 4 3 2 Low Concern 1

Grid Training helps leaders 8, move to a style high in both7 style 6 Concern for people 2, styleConcern for production

4,3 style

1 2 3 Low Concern

8 9 High Concern

Concern for Production

Adapted from Blake and Moutons Managerial Grid

What are the Takeaways from Behavioral Styles Theory?

To some degree, we can shape leader behavior through interventions such as training. Research revealed that there is no one best style. Research pointed out that it is important to understand how frequently and how effectively leaders exhibited various

Contingency Theories
Focused on leader style and situational characteristics (leader style should match situational demands). Fiedlers Theory Path-Goal Theory Complex and difficult to apply and do not necessarily apply to rapidly changing environments. Takeaway: Consider the need to modify leadership style when faced with strong situational demands (e.g., time

The Hunt for T-Rex

A platform for discussing the nature of leadership behavior and issues such as: Clarity of purpose and goals, empowerment, focus on quality, contingency or situational aspects of leadership. To reflect on how we make decisions as individuals and within groups and teams. To (possibly) demonstrate the synergistic effect that can be produced

Additional Perspectives on Leadership

Leader-Member Exchange: focuses on dyadic relationship between manager and direct reports
In-group vs. Out-group exchange: Mutual trust and respect versus the lack thereof. Assessing your leader-member exchange: OB Exercise

Research Findings
LMX related positively to job satisfaction, job performance and

LMX: Primary Management Implications

For leaders: establish highperformance expectations for all direct reports, with high levels of communication. For subordinates:
Focus on goals and what you can control. Use a problem-solving approach when disagreements arise. This point always applies to leader.

Transactional Leadership
Transactional leaders
Display active management-by-exception behavior Display contingent reward behavior
1. Understand what followers want to receive from their work, and attempt to give them what they desire, contingent on performance 2. Clarify links between performance and reward 3. Exchange rewards and promises of rewards for specified performance levels 4. Respond to the interests of followers only if the followers are performing satisfactorily

Transformational Leadership
Transformational leaders
Motivate followers to
Do more than expected (organizational vision and outcomes) Continuously develop and grow Increase their level of self-confidence Place the interests of the team or organization before their own

Display charisma Intellectually stimulate their subordinates Provide individual consideration of

Transformational Leadership
Intellectual stimulation Charisma Transformational Leader Individual consideration

Leader Behaviors
Articulate clear and appealing vision Communicate the vision Delegate significant authority and responsibility Eliminate unnecessary bureaucratic restraints Promote cooperation and teamwork

Leader Behaviors
Encourage open sharing of ideas and concerns Encourage participative decision making Provide coaching, training and other developmental experiences Modify structure to promote key values and objectives

What is the take-away from research on transformational leadership?

Charisma, intellectual stimulation and individual consideration (i.e., transformational leadership) are positively related to organizational effectiveness only under conditions of environmental uncertainty.
Thus, followership is important people may not prefer a transformational leader under conditions of threat or when facing relatively routine coordination problems. In Vugt, Hogan, and Kaisers (2008) analysis, Except for certain well-defined situations, people will perform better if they are left

Leaders Leading Leaders

Southwest Airlines
LEADERSHIP is a dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation and moral development as they affect real, intended change.

A Trait Approach:

How They Do It An Organization Level Perspective

Proctor & Gamble (Cincinnati, OH), 135,000 employees. Hire for emotional intelligence. Look for leadership experience, chairing the debate team, serving as church choir director, etc.

A Behavioral Approach:
General Electric (Fairfield, CT), 300,000 employees. Develops leaders through training and on-line workshops. BBVA (Bilbao, Spain), 108,000 employees. Use peers and self-evaluations to identify managers with participative style.

A Contingency Approach:
Hindustan Unilever (Mumbai, India), 15,000. Place the right people in the right jobs, based on leader style from a leadership rating matrix.

A Behavioral/Transformational Approach:
Nokia (Espoo, Finland), 68,500 employees. The companys 12 executives meet 4 to 5 times with protgs at VP level

How They Do It A Global Perspective The GLOBE Study: Importance of cultural values such as collectivism, power distance, avoidance of uncertainty, etc. Identification of cultural clusters with more or less effective leadership styles.

Global Differences in Leadership

Anglo cluster (ideal leader)
Charismatic influence and inspiration, encouraging participation Diplomatic, delegating authority, allowing everyone to have their say

Arabic cluster (ideal leader)

Need to balance paradoxical set of expectations
Expected not to differentiate themselves from others and have modest styles Expected to have great deal of power and control, and to direct most decisions and actions

Global Differences in Leadership

Germanic cluster (ideal leader)
Charismatic Highly team-oriented Participative

Southern Asia cluster (ideal leader)

Humane, participative, and charismatic Expected to be benevolent while maintaining a strong position of authority

Implications for training and developing leaders?

Leadership Criteria
Unit of Analysis: Individual Leader
Ratings (Standing Out or Approval) of leader/manager effectiveness Common in leadership research

Unit of Analysis: Group

Process assessments (e.g., follower attitudes and actions) Outcomes (e.g., productivity, customer indicators, financial indicators) Generally, we know less about how leadership relates to group outcome criteria than we do about leadership related to ratings of individual leader approval or group processes. But the evidence is clearly in favor of leadership and particular organizational practices as influencing firm performance How do these points tie back to our discussion of

Recap
Trait, behavioral, and contingency theories of leadership have been proposed with each having important practice implications. Recent research and practice efforts have focused on LMX and transformational perspectives. Knowledge of leadership theories is helpful for certain well-defined situations, but people may do well in many contexts with less emphasis on