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Dr. Karim Kobeissi
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Organizational Behavior
Dr. Karim KobeissiIslamic University of Lebanon - 2014
Chapter 12: Leadership in Organizational Settings
L e a d e r s h i p D e fi n e d•Leadership is the process by which a person exerts influence over other people and inspires, motivates, and directs their activities to help achieve organizational goals.
•The person who carries out leadership is a leader.
• Because leading is one of the four management functions, ideally all managers should be leaders.
Emerging View of Leadership: Shared Leadership
The view that leadership is broadly distributed rather than assigned to one person.
Employees are leaders when they support change in the company or team.
Shared leadership calls for: Formal leaders willing to delegate power Collaborative culture – employees support each other Employee ability to influence through persuasion
Emerging View of Leadership: Shared Leadership (con)
The emerging view of leadership is that effective leaders subordinate their own egos and nurture leadership in others.
Sir Richard Branson is often cited as a role model for the new leadership. “I've got people all over the world and it's up to me to let them test and prove themselves,” says Branson.
LeadershipPerspectives
Competency Perspective
Contingency Perspective
Implicit Leadership Perspective
Transformational Perspective
Perspectives of Leadership
Behavioral Perspective
Competency Perspective• Competencies – personal characteristics that lead
to superior performance in a leadership role (e.g. skills, knowledge, values).
• Early research – very few “traits” predicted effective leadership.
• Emerging view – several competencies now identified as key influences on leadership potential and of effective leaders.
Self-concept
Drive
• Positive self-evaluation• High self-esteem and self-efficacy• Internal locus of control
• Inner motivation to pursue goals• Inquisitiveness, action-oriented
Integrity• Truthfulness• Consistency in words and actions
Personality• Sociability, preciseness
(and other traits)
Eight Leadership Competencies
Cognitive/practical
Intelligence
• Above average cognitive ability• Able to solve real-world problems
Knowledge ofthe Business
• Understands external environment• Aids intuitive decision making
Eight Leadership Competencies (con’t)
Leadership Motivation
• High need for socialized power to achieve organizational goals
Emotional Intelligence
• Perceiving, assimilating, understanding, and regulating emotions
Competency Perspective Limitations
1. Researchers weren’t able to identify a set of
competencies that would always differentiate a leader
from a non leader—that is, a set of consistent and
unique traits that would apply universally to all
effective leaders, no matter what organization they led.
2. Competencies refer to leadership potential, not
performance.
Leader Behavior PerspectiveThe leader behavior perspective assumes that a key factor in leadership success is an
individual’s basic leadership style, which could be categorized as either people
oriented behavior or task oriented behavior.
• People-oriented behaviors
–Showing mutual trust and respect
–Concern for employee needs
–Looks out for employee well-being
Leader Behavior Perspective (con)
• Task-oriented behaviors
– Assign specific tasks
– Ensure employees follow rules
– Set stretch goals (a stretch goal is an objective that
cannot be achieved by incremental or small
improvements but require extending oneself to the
limit to be actualized) to achieve performance
capacity.
Roman Suchta is a task-oriented manager
Leader Behavior Perspective Limitations
• Like the competency perspective of leadership, the
behavior theories alone cannot explain leader
effectiveness: Some leaders are effective even
when they do not perform people oriented or
tasks oriented behavior, and some leaders are
ineffective even when they do perform both kinds
of behaviors.
– But best style seems to depend on the situation
Contingency Perspective
According to the contingency perspective, whether or not a
manger is an effective leader is the result of the interplay
between:
1. What the manager is like (Manager’s Competencies),
2. What he or she does (Manager’s Behavior), and
3. The situation in which leadership takes place.
Fiedler’s Contingency ModelFiedler assumed a person’s leadership style was fixed
regardless of the situation. With this in mind, Fiedler
identified three situational characteristics that are
important determinants of how favorable a situation is for
leading:
1) Leader-Member Relations
2) Task Structure
3) Position Power
Fiedler’s Contingency Model (con)1) Leader-Member RelationsThe first situational characteristic that Fiedler described as the degree of
confidence, trust, and respect employees had for their leader; rated as either good or poor.
2) Task StructureThe second situational characteristic that Fiedler described as the degree to
which job assignments were formalized and structured; rated as either high or low.
3) Position Power
The third situational characteristic that Fiedler described as the degree of
influence a leader had over activities such as hiring, firing, discipline,
promotions, and salary increases; rated as either strong or weak.
Fiedler’s Contingency Model (con)
By taking all possible combinations of good and poor leader-
member relations, high and low task structure, and strong
and weak position power, Fiedler identified eight leadership
situations, which vary in their favorability for leading.
Fiedler’s Contingency Model (con)Once Fiedler had described the leader variables and the
situational variables, he could define the specific contingencies for leadership effectiveness. He concluded that task-oriented leaders performed better in very favorable and in very unfavorable situations (IV, V, VI,VII). On the other hand, relationship-oriented leaders performed better in moderately favorable situations (I, II,III, VIII).
Fiedler’s Contingency Model (con)According to Fiedler, leader style (behavior) is an enduring
characteristic that managers cannot change !!! This suggest
that, in order to be effective, managers need to be placed
in leadership situations that fit their style or situations need
to be changed to suit the manager. Situations can be
changed, for example, by giving a manager more position
power or taking steps to increase task structure such as by
clarifying goals.
Other Contingency Leadership Theories: : Path-Goal Leadership
The principle of path-goal theory is that effective leaders
motivates subordinates to achieve organizational goals
by: (1) clearly identifying the outcomes that
subordinates are trying to obtain from their jobs and
the organization, (2) rewarding subordinates with these
outcomes for high performance and the attainment of
work goals, and (3) clarifying for subordinates the paths
leading to the attainment of work goals.
Other Contingency Leadership Theories: : Path-Goal Leadership
Path - goal theory identified four kinds of behaviors that leaders can
engage in to motivate subordinates:
1.A directive behavior lets subordinates know what’s expected of them,
schedules work to be done, and gives specific guidance on how to
accomplish tasks.
2.A participative behavior consults with group members and uses their
suggestions before making a decision.
3.A supportive behavior shows concern for the needs of followers and is
friendly.
4.An achievement-oriented behavior sets challenging goals and expects
followers to perform at their highest level.
Other Contingency Leadership Theories: : Path-Goal Leadership
In contrast to Fiedler’s view that a leader couldn’t change his or her
behavior, the path- goal theory assumed that leaders are flexible and
can display any or of these four leadership styles depending on the
nature of the subordinates and the type of work they do:
• When tasks are ambiguous and followers aren’t sure what to do, directive behavior leads to greater satisfaction.
• When subordinates are performing stressful tasks, supportive behavior results in high employee performance and satisfaction.
Other Contingency Leadership Theories: : Path-Goal Leadership
• When subordinates support of a decision is required,
participative behavior can be particularly effective.
• When highly capable subordinates are bored from having
too few challenges, achievement-oriented behavior can
be particularly effective, but it might backfire if used with
subordinates who are already pushed to their limits.
Path-Goal Leadership Model
EmployeeContingencies
EnvironmentalContingencies
LeaderBehaviors
• Directive• Supportive• Participative• Achievement-
oriented
Leader Effectiveness
• Employee motivation
• Employee satisfaction
• Acceptance of leader
Other Contingency Leader Theories: Situational Leadership Model
– Effective leaders vary style with follower
“readiness”
– Leader styles – telling, selling, participating, and
delegating
Other Contingency Leader Theories: Leadership Substitutes
• The leader substitutes model is a contingency model because it suggests that in some situations leadership is unnecessary.
• The leader substitutes model suggest that under certain conditions managers do not have to play a leadership role- that members of an organization sometimes can perform highly without a manager exerting influence over them.
- e.g.: Training and experience replace task-oriented leadership.
• Research evidence: substitutes help, but don’t completely substitute for real leadership.
Transformational Leadership Perspective
An exciting new kind of
leadership is sweeping the
globe. Transformational
leadership occurs when
managers change (or
transform) their subordinates
in three important ways:
Transformational Leadership Perspective (con)1. Transformational managers make subordinates aware of how important their jobs
are for the organization and how necessary it is for them to perform those jobs as
best they can so that the organization can attain its goals.
2. Transformational managers make their subordinates aware of the subordinates’
own needs for personal growth, development and accomplishment.
3. Transformational managers motivate their subordinates to work for the good of the
organization as a whole, not just for their personal gain or benefit.
When managers transform their subordinates in these three ways, subordinates trust
the manager, are highly motivated, and help the organization achieve its goals.
Transformational vs. Transactional Leaders
Transformational leadership is often contrasted with transactional
leadership. Transactional leadership involves managers using their
reward and intimidating power to encourage high performance. When
managers reward high performers, punish low performers, and
motivates subordinates by reinforcing desired behaviors and
punishing undesired ones, they are engage in transactional
leadership. Managers who effectively influence their subordinates to
achieve goals yet do not seem to be making the kind of dramatic
changes that are part of transformational leadership are engaging in
transactional leadership.
Evaluating Transformational Leadership
Transformational leadership is important• Higher employee satisfaction, performance, org
citizenship, creativity
Transformational leadership limitations• Some models have circular logic
- Transformational leaders defined by their success rather than behavior (Result: those models have no predictive value)
• Universal theory- Need a contingency-oriented theory- Recognize differences across cultures
Implicit Leadership Perspective
Follower perceptions of characteristics of effective leaders1. Leadership prototypes
• Preconceived image of effective leader, used to evaluate leader effectiveness
2. Romance of leadership effect• Amplify effect of leaders on organizational results• Fundamental attribution error• Need for situational control
Cultural Issues in Leadership
• Societal cultural values and practices affect leaders:– Shape leader’s values/norms– Influence decisions and actions– Shape follower prototype of effective leaders
• Some leadership styles are universal, others differ across cultures– “Charismatic visionary” seems to be universal– Participative leadership works better in some cultures
than others
Gender Issues in Leadership
• Male and female leaders have similar task- and people-oriented leadership.
• Participative leadership style is used more often by female leaders.
• Evaluating female leaders– Still receive negative evaluations as leader due to
prototypes and gender stereotypes– But evidence that they are good at emerging
leadership styles (coaching, teamwork)