CHAPTER 7 | LEADER-FOLLOWER RELATIONS

 Evolution of the Dyadic Theory (slide 1)

Dyadic – Refers to the individualized relationship between a leader and each follower in a work unit

Dyadic theory – Is an approach to leadership that attempts to explain why leaders vary their behavior
with different followers

Dyadic theorists focus on the development and effects of separate dyadic relationships between leaders
and followers

 Vertical Dyadic Linkage Theory: Individualized leader–follower interactions creating in-groups and
out-groups

In-group – Includes followers with strong social ties to their leader in a supportive relationship
characterized by high mutual trust, respect, loyalty, and influence

Characteristics of in-group – Participate in important decision making; Are given added responsibility;
Have greater access to the leader; Experience greater support and positive influence from the leader;
Granted special favors from the leader; Mutual reinforcement based on common needs and interests;
More likely to share with own group members than with members of other groups

Out-group – Influences followers with few or no social ties to their leader, in a strictly task-centered
relationship characterized by low exchange and top-down influence

Characteristics of out-group – Are managed according to the employment contract requirements;

Receive little inspiration, encouragement, or recognition; Do not experience positive relationships and
influence

 Leader–Member Exchange focuses on the quality of each dyad and its effects on organizational
outcomes over time

High-quality LMX relationships are characterized by: Better social support; More resources; More
guidance for career development; Greater follower input in decision making; Greater negotiating
latitude

Low-quality LMX relationships are characterized by Less support; More formal sueprvision; Little or no
involvement in decision making

 The 3-Stage Process for Developing Positive LMX Relations

Stage 1

 The leader and follower conduct themselves as strangers

 The leader and follower test each other to identify what kinds of behavior are acceptable
 Each relationship is negotiated informally between each follower and the leader
 Involves:

 Impressions management: Is a follower’s effort to project a favorable image in order to gain an

immediate benefit or improve a long-term relationship with the leader
  Ingratiation: Is the effort to appear supportive, appreciative, and respectful
 Self-promotion: Is the effort to appear competent and dependable

Stage 2

 The leader and follower become acquainted

 They further refine the roles they will play together
 Mutual trust, loyalty, and respect develop between leader and follower
 Relationships that do not move beyond Stage 1 may deteriorate and remain at the level of an out-
group

Stage 3

 The roles reach maturity

 Exchange based on self-interest is transformed into mutual commitment to the mission and objectives
of the work unit
 The end result of the life cycle model of LMX relationships is the creation of actual and perceived
differences between in-group and out-group members

 Team Building

Involves a primary concern to motivate a group of individuals to work together to achieve a common
objective, while alleviating any conflicts or obstacles that may arise while striving toward that objective

The emphasis is on forming relationships with all group members, not just with a few special individuals

Each person must perceive that he or she is an important and respected member of the team rather
than a non-entity

Workplace social exchanges between individual employees, work groups, and managers are critical to
team building

 Systems and Networks

There is a noticeable trend of organizations seeking and getting involved in a variety of collaborative
agreements for the purposes of entering new markets and gaining innovations or new products

By collaborating, organizations hope to exchange strengths with others, which will allow all partners to
develop timely, innovative, synergistic solutions to complex problems they could not address on their
own

From a network perspective, the focus is on relations among actors, whether they are individuals, work
units, or organizations, who are embedded within networks of interconnected relationships that provide
opportunities and constraints on behavior

A systems-oriented prospective focuses on how the quality of the LMX relationship affects followers at
the interpersonal, group, and organizational levels

Proponents of the systems and networks view contend that leader relationships are not limited to
followers, but include peers, customers, suppliers, and other relevant stakeholders in the collectives of
workgroups and organization-wide networks
To be effective, groups need to manage ―”boundary spanning” relationships with other groups and
external members in their organization in order to gain access to information and resources

 Guidelines for effective Leader Feedback

Pre-feedback—Leader should:
 Remind self to stay calm and professional
 Gather accurate facts on follower performance
 Remind self to avoid rush to judgment

During feedback session—Leader should:

 Be specific in stating performance deficiency
 Explain negative impact of ineffective behavior
 Help follower identify reasons for poor performance
 Ask follower to suggest remedies
 Arrive at mutual agreement on specific action steps

Post-feedback session—Leader should:

 Follow up to ensure implementation of action steps
 Show desire to be of help to follower
 Build follower’s self-confidence

 Delegation

It is the process of assigning the responsibility and authority for accomplishing objectives; Refers to
giving employees new tasks; Success depends on a manager’s ability to know what to delegate and what
not to delegate;

The leader should consider the following factors when delegating:

 Task
 Time required
 Follower characteristics

Benefits of Delegation
Gives managers more time to perform high-priority tasks; Gets tasks accomplished and increases
productivity; Enables leaders to mobilize resources and secure better results than they could have got
alone; Trains employees and improves their self-esteem; Eases the stress and burden on managers;
Enriches followers’ jobs

What to delegate:  Paperwork  Routine tasks  Technical matters  Tasks with developmental
potential  Solving employees’ problems

What not to delegate:  Personnel matters  Confidential activities  Activities delegated to you
personally  Crises
CHAPTER 8 | TEAM LEADERSHIP AND SELF_MANAGED TEAMS

> Groups vs. Teams: What’s the difference?

Group:

Focus on individual performance and goals.

Rely on individual abilities
Work more independently with greater motivation to achieve personal goals
Have a very hierarchical leadership style
Characterized by individual self-interest

Team:

Have a sese of shared mission

Have collective responsibility
Focus on sharing information, inights, and perspectives
Make deccisions that support each other individual to do his or her own job better
Reinforce each other’ sindividual performance standards
Have a participative or empoweremnt-oriented leadership style
Have performance measures that create direct accountability for the team
Strive for equality between members

> Advantages and disadvantages of teamwork:

Advantages – synergy; avoidance of major errors; faster, better decisions; continuous improvement;
innovation; self-motivation; empowerment; greater job satisfaction; needs fulfillment.

Disadvantages – Pressure to conform to group standards of performance and conduct; Resistance to the
team effort from impinging on autonomy; Social loafing; Groupthink; Intergroup conflicts; High levels of
pressure and stress .

> Social Loafing;

Is the conscious or unconscious tendency by some team members to shirk responsibilities by
withholding effort toward group goals when they are not individually accountable for their work;

Is likely when individual effort is not recognized and assessed;

Individual-level performance appraisal helps reduce social loafing, but risks jeopardizing team
interaction and synergy.

> Groupthink

Is when members of a cohesive group tend to agree on a decision not on the basis of its merit but
because they are less willing to risk rejection for questioning a majority viewpoint or presenting a
dissenting opinion;

Unanimity is more important than objectivity;

Dissenting views are suppressed in favor of consensus;

Can be remedied by training team members to become effective participants in the decisionmaking
process.

> Team Composition

 Focuses on the diversity in knowledge, background, and experiences of team members
 Teams need the right mix of complementary skills, knowledge, and ability
 Teams with experience in working together tend to demonstrate greater task proficiency and
teamwork effectiveness
 Team diversity reduces the likelihood of groupthink
 Teams that do not manage diversity well may suffer negative consequences
 Good working relationships require good social skills for team members
 Size also impacts team effectiveness:
 Small teams of under 12 members are generally more effective

> Team Structure

 Refers to interrelations that determine the assignment of tasks, responsibilities, and authority
 Team members’ degree of interdependence and autonomy have been identified as key structural
components that influence team effectiveness
 Determines the extent to which team members directly control the actions of each other or report
observations of their peers’ efforts to management
  Horizontal incentive system
  Vertical incentive system

> Organizational Support

 Effective teams have strong support from top management
 Assessing team effectiveness as part of overall organizational performance is an important role of top
management

> Team Creativity

 Is the creation of a valuable, useful, and novel product, service, idea, procedure, or process carried out
via discovery rather than a predetermined step-bystep procedure, by individuals working together in a
complex social system
 Organizations that will survive and thrive are those that make the best use of the creativity of their
workforce

> Organizational Practices that Foster Team Creativity

 Provide appropriate recognition and rewards
 Provide adequate and quality resources
 Provide supportive climate and culture
 Provide flexibility and a minimum amount of structure

> Team Leader Practices that Foster Creativity

 Matching people with the right assignments
 Giving team members greater autonomy to do the job
 Protecting against “creativity blockers”
 Ensuring the availability of adequate time, money, and other resources

> Functional Team

 Is a group of employees belonging to the same functional department, such as marketing, R&D,
production, human resources, or information systems who have a common objective
 The structure is generally more hierarchical with the functional leader making all the decisions and
expecting his or her followers to implement them
 Team members tend to focus on their local area of specialization ignoring the overall organizational
mission
 There is no one best leadership style to use
 The use of functional structure has been in decline

> Cross-Functional Team

 Is made up of members of different functional departments of an organization who are brought
together to perform unique tasks to create new and nonroutine products or services
 Some members may be from outside the organization
 Interaction, cooperation, coordination, information sharing, and cross-fertilization of ideas among
people from different functional areas produces better quality products/services with shorter
development cycles
 Cross-functional teams offer many potential benefits to an organization, such as:
  A rich and diverse base of knowledge and creative potential that far exceeds anything a single
functional team could come up with
  Improved coordination
  Avoidance of problems
  Multiple sources of information and perspectives
  Contacts outside of one’s functional specialty
  Speed to market
  Learning of new skills that members carry back to their functional unit
  Synergy

> Virtual Team

 Is one whose members are geographically distributed, requiring them to work together through
electronic means with minimal face-to-face interaction
 New and advanced technologies are providing the means for teamwork that is dispersed (carried out
in different locations) and asynchronous (carried out at different times)
 Have significant collaboration, communication, and leadership challenges
 Team interaction, information sharing, and knowledge integration are all critical to success
 Virtual cross-functional teams are growing in companies with global operations

> Self-Managed Team (SMT)

 Are relatively autonomous teams whose members share or rotate leadership responsibilities and hold
themselves mutually responsible for a set of performance goalsassigned by higher management
 Are usually cross-functional in membership makeup
 Have wide latitude in decision making
 Can manage themselves, plan and schedule work, and take action on problems

> The Benefits of Self-Managed Teams

 Greater improvements in quality, speed, process, and innovation
 A sense of belonging and ownership in one’s work
 Greater employee motivation
 Accelerated new product development
 Greater employee participation
 Reduced operational costs because of reductions in managerial ranks and greater efficiencies
 Greater employee job satisfaction, commitment, and productivity, and lower turnover and
absenteeism rates

> Guidelines for Improving Self-Managed Team Effectiveness

 Ensure that the whole organization has changed its culture, structure, and climate to support SMTs
 Have a champion to support and defend the SMT from opponents who are threatened by the new
concept and what it represents
 The self-managed team champion is an advocate of the selfmanaged team concept
responsibility is to help the team obtain necessary resources, gain political support from top
management and other stakeholders of the organization, and defend it from enemy attacks
 Have a well-thought-out vision of the way in which SMTs will fit into the scheme of the entire
organization
 Allow time for team members to bond with one another and form team skills
 Provide adequate training so team member skills and experiences match task requirements
 Provide objective goals, incentives, and appropriate infrastructure
 Ensure that the organization has the necessary resources to commit to this kind of change in time,
money, and people
 Create a sense of empowerment so SMTs take ownership of what they are doing and how they are
going to do it
 Pay close attention to team design decisions
 Develop team-based measurements and corresponding feedback methods that address team
performance
 Recruit and train managers to act as facilitators or coaches
 Avoid overreacting at the first sign of crisis
CHAPTER 9 | CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP

> Personal Meaning

 Is the degree to which people’s lives make emotional sense and to which the demands confronted by
them are perceived as being worthy of energy and commitment
 Is the ―work–life balance: The achievement of equilibrium in personal and official life

> Factors that Influence Personal Meaning

Self-Belief: Is knowing who you are; Charismatic leaders overcome inner conflict in order to reach their
full potential

Legacy: Charismatic leaders are driven to leave their personal mark on society

Selflessness: Helping others motivates many charismatic leaders

Activist Mind-Set: Charismatic leaders use political and social causes as opportunities to influence
change and provide a better life for their followers

Faith and Spirituality: Charismatic leaders often face hardships while leading missions of change and rely
on faith for support

> Differentiating Between Charismatic and Noncharismatic Leaders

Dissatisfaction with Status Quo:

Charismatic leaders are very much opposed to the status quo and strive to change it;

Non-charismatic leaders essentially agree with the status quo and strive to maintain it

Use of unconventional strategies:

Charismatic leaders use unconventional means to transcend the existing order

Admirers of charismatic leaders believe that such individuals possess heroic qualities that enable them
to persist in spite of the odds against them

Follower perceptions of these heroic qualities evoke sentiments of adoration, especially when the
leader’s activities exemplify acts of heroism involving personal risk and self-sacrificing behavior

Vision Formulation and articulation:

Charismatic leaders have the ability to articulate an ideological and inspirational vision—a transcendent
vision that promises a better future than the present

Effective articulation of vision is measured in what is said (content and context) and how it is said
(oratorical abilities)

Effective communication skills are an imperative in the successful articulation of a compelling vision

Awareness of resource needs and constraints

Charismatic leaders understand the need to perform a realistic assessment of environmental resources
and constraints affecting their ability to effect major change within their organization

They are sensitive to both the capabilities and emotional needs of followers

They are aware of the need to align organizational strategies with existing capabilities to ensure a
successful transformation

Qualities of Charismatic Leaders

 Vision – Is the ability to imagine different and better conditions and ways to achieve them; Uplifts and
attracts others; Must result from a collaborative effort
 Self-confidence and moral conviction – Charismatic leaders build trust in their
followers through: Unshakeable self-confidence, An abiding faith, Strong moral conviction, Optimism\
 Superb communication skills- Charismatic leaders can communicate complex ideas and goals in clear,
compelling ways, so that everyone from top management to the bottom level of the organization can
understand and identify with their message
 Ability to trust others – Charismatic leaders build support and trust by showing commitment to
followers’ needs over self-interest and by being fair
 High risk orientation – Charismatic leaders earn followers’ trust by willing to incur great personal risk
 Relational power base – Charismatic leadership is intensely relational and based almost entirely upon
referent and expert power
 Minimum internal conflict
 Ability to empower others – Charismatic leaders empower followers by building their self-efficacy

> Transformational Leadership vs. Transactional Leadership

 Transformational leadership - Serves to change the status quo by articulating to followers the
problems in the current system and a compelling vision of what a new organization could be

 Transactional leadership – Seeks to maintain stability within an organization through regular economic
and social exchanges that achieve specific goals for both the leaders and their followers

> Charismatic vs. Transformational Leadership

 Charismatic leaders by nature are transformational, but not all transformational leaders achieve their
transforming results through the charismatic effects of their personalities
 Transformational leaders are similar to charismatic leaders in that they can articulate a compelling
vision of the future and influence followers by arousing strong emotions in support of the vision
 Transformational leaders can emerge from different levels of the organization
 An organization may have many transformational leaders; in contrast, charismatic leaders are few in
number
 Charismatic leaders are most likely to emerge in the throes of a crisis
 The response by people to a charismatic or transformational leader is often highly polarized, but the
emotional levels of resistance toward charismatic leaders are more extreme than those toward
transformational leaders
 Both charismatic and transformational leadership always involve conflict and change

> Transformational vs. Transactional Leadership

Transformational leadership
 Inspires followers to go beyond self-interest and act for the good of the organization
 Leaders are described as influential, inspirational, and charismatic
 Serves to change the status quo by articulating to followers the problems in the current system and a
compelling vision of what a new organization could be
 Creates significant change in both followers and organizations
 Creates and shares knowledge at the individual and group levels
 Emphasize the importance of group values and focus on collective interests

Transactional leadership
 Caters to the self-interest of followers by rewarding specific behaviors and performance that meets
with the leader’s expectations and punishes behavior and performance that does not meet expectations
 Leaders are described as task- and reward-oriented, structure, and passive
 Involves specific contractual arrangements with followers that provides them with benefits that satisfy
their needs and desires in exchange for meeting specified objectives or performing certain duties
 Promotes stability
 Exploits knowledge at the organizational level
 Focuses on defining roles and task requirements and giving rewards that are contingent on task
fulfillment
CHAPTER 10 | LEADERSHIP OF CULTURE, ETHICS, AND DIVERSITY

> Culture serves two important functions in organizations:

It creates internal unity – Organizational culture defines a normative order that serves as a source of
consistent behavior within the organization
It helps the organization adapt to the external environment – The appropriate culture type can ensure
that an organization responds quickly to rapidly changing customer needs or the offensive actions of a
competitor

> Substantive Leadership Actions for Shaping Culture

 Matching HR practices to culture

 Matching operating policies and practices to culture
 Creating a strategy–culture fit
 Aligning reward/incentive system with culture
 Matching work environment design to culture
 Developing a written values statement

Cooperative culture
 Represents a leadership belief in strong, mutually reinforcing exchanges and linkages between
employees and departments
 Operating policies, procedures, standards, and tasks are all designed to encourage cooperation,
teamwork, power sharing, and camaraderie among employees
 Management thinking is predicated on the belief that organizational success is influenced more by
employee relationships inside the organization than by external relationships
 Employees are trained to think like owners rather than hired hands

Adaptive culture
 Represents a leadership belief in active monitoring of the external environment for emerging
opportunities and threats
 Made up of policies, procedures, and practices that support employees’ ability to respond quickly to
changing environmental conditions
 Members are encouraged to take risks, experiment, and innovate
 Management thinking is based on the belief that organizational success is influenced more by events
outside the organization than by internal factors
 Employees are empowered to make decisions and act quickly to take advantage of emerging
opportunities or avoid threats

Competitive culture
 Represents a leadership that encourages and values a highly competitive work environment
 Organizational policies, procedures, work practices, rules, and tasks are all designed to foster both
internal competition and external competition
 Leaders focus on the achievement of specific targets such as market share, revenue, growth, or
profitability
 Values competitiveness, personal initiative, aggressiveness, achievement, and the willingness to work
long and hard for yourself or for the team

Bureaucratic culture
 Represents a leadership that values order, stability, status, and efficiency
 Leaders perceive their environments as basically stable with an internal strategic focus
 Emphasizes strict adherence to set rules, policies, and procedures
 Are highly structured and efficiency driven

> Reasons for Embracing Diversity

 Can offer a company a marketing advantage
 Can help a company to develop and retain talented people
 Can be cost effective
 May provide a broader and deeper base of creative problem solving and decision making

> Obstacles to Achieving Diversity

Stereotypes and prejudice, Ethnocentrism, the glass ceiling, unfriendly work environment

> Creating a Culture That Supports Diversity

 For organizations to embrace and value diversity, the concept itself must be embedded in the
organization’s business model

 When diversity leadership becomes part of the organization’s mission, all employees are given equal
opportunities to contribute their talents, skills, and expertise toward achieving organizational objectives

 A successful diversity program requires a team approach

 Leaders have a responsibility to create a work culture that accommodates the needs of a diverse
workforce
CHAPTER 11 | STRATEGIC LEADERSHIP AND CHANGE MANAGEMENT

> Strategic Leadership

is a person’s ability to anticipate, envision, maintain flexibility, think strategically, and work with others
to initiate changes that will create a viable future for the organization.

It is a process of providing the direction and inspiration necessary to create and implement a firm’s
vision, mission, and strategies to achieve organizational objectives.

Effective strategic leaders are skilled at:

 Anticipating and forecasting events in the external environment that have the potential to impact
business performance
 Finding and sustaining competitive advantage by building core competencies and selecting the right
markets in which to compete
 Evaluating strategy implementation and results systematically, and making strategic adjustments
 Building a highly effective, efficient, and motivated team of employees
 Selecting, developing, and mentoring a talented team of leaders
 Deciding on appropriate goals and priorities for achieving them

> Strategic Management is the set of decisions and actions used to formulate and implement specific
strategies that will achieve a competitively superior fit between the organization and its environment, so
as to achieve organizational goals

> Implementing Change

 Organizational change is an alteration in an organization’s alignment with its external environment
 Organizations spend millions of dollars on change efforts
 Change can be transformational or incremental
 Organizational change is any transition that requires a change in human performance

>The Need for Change

Just about every type of organization is facing an external environment characterized by:
 New technology
 Global economy
 Changing market requirements
 Intense domestic and international competition

> The Change Management Process

 Many experts and scholars recommend viewing change as a process
 The process moves through several stages
 It takes effective transformational leadership to accomplish the activities in these stages
> Why People Resist Change
 Threat to one’s self-interest
 Uncertainty
 Lack of confidence that change will succeed
 Lack of conviction that change is necessary
 Distrust of leadership
 Threat to personal values
 Fear of being manipulated

People-Centered Recommendations for Minimizing Resistance to Change

 Show relentless support and unquestionable commitment to the change process
 Communicate the need and the urgency for change to everyone
 Maintain ongoing communication about the progress of the change
 Avoid micromanaging and empower people to implement the change
 Ensure that change efforts are adequately staffed and funded
 Anticipate and prepare people for the necessary adjustment that change will trigger (Career
counseling, Retraining)

> Task-Centered Recommendations for Minimizing Resistance to Change

 Assemble a coalition of supporters inside and outside the organization
 Align organizational structure with new strategy, for consistency
 Transfer the implementation process to a working team
 Recruit and fill key positions with competent and committed supporters
 Know when and how to use ad hoc committees or task forces to shape implementation activities
 Recognize and reward the contributions of others to the change process