Chapter 12: LEADERSHIP What is leadership?

John Kotter of the Harvard Business School: Management - is about coping with complexity. Good management brings about order and consistency by drawing up formal plans, designing rigid organization structures, and monitoring results against the plans. Leadership - is about coping with change. Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles. Ability to influence a group toward the achievement of a vision or set of goals

A core component of EI is empathy. Emphatic leaders can sense others needs, listen to what followers say (and dont say), and read the reactions of others. 2 conclusions based on recent findings: a. Traits can predict leadership b. Traits do a better job predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effective and ineffective leaders.

BEHAVIORAL THEORIES Theories proposing that specific behaviors differentiate leaders from non leaders.

TRAIT THEORIES consider personal qualities and characteristics that differentiate leaders from non leaders

Trait research provides a basis for selecting the right people for leadership. In contrast, behavioral studies implied we could train people to be leaders. Ohio State Studies Sought to identify independent dimensions of leader behavior The most comprehensive and replicated behavioral theories resulted from OSS A. Initiating structure extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment - includes behavior that attempts to organize work, work relationships, and goals. - a leader high in initiating structure is someone who assigns group members to particular tasks, expects workers to maintain definite standards of performance, and emphasizes the meeting of deadlines B. Consideration - extent to which a persons job relationships are characterized by mutual trust, respect for employees ideas, and regard for their feelings. - a leader high in consideration helps employees with personal problems, is friendly and approachable, treats all employees as equals, and expresses appreciation and support

Big Five Model Framework extraversion: most important trait of effective leaders but more strongly related to leader emergence than to leader effectiveness leaders who scored very high on assertiveness were less effective than those who were moderately high Leaders who like being around people and are able to assert themselves (extraverted), disciplined and able to keep commitments they make(conscientious), and creative and flexible (open) do have an apparent advantage when it comes to leadership, suggesting good leaders do have key traits in common Conscientiousness and extraversion are positively related to leaders self-efficacy, which explained most of the variance in subordinates ratings of leader performance. Emotional intelligence: advocates of EI argue that without it, a person can have outstanding training, a highly analytical mind, a compelling vision, and an endless supply of terrific ideas but still not make a great leader.

Michigans Survey Research Center Also came up with two behavioral dimensions:

A. Employee-oriented leader - emphasized interpersonal relationships by taking a personal interest in the needs of the employees and accepting individual differences among them. B. Production-oriented leader - emphasized the technical or task aspects of the job - concern focused on accomplishing the groups tasks.

-Least preferred co-worker (LPC) an instrument that purports to measure whether a person is task or relationship oriented; if you describe the person you are least able to work with in favorable terms (a high LPC score), Fiedler would label you relationship oriented. If you see your least preferred co-worker in relatively unfavorable terms (a low LPC score), you are primarily interested in productivity and are task oriented. -Fiedler assumes an individuals leadership style is FIXED; either the situation has to be modified or the leader has to be replaced to achieve optimal effectiveness -Defining the situation: match the leader with the situation. 3 contingency or situational dimensions: 1) Leader-member relations degree of confidence, trust, and respect members have in their leader. 2) Task structure degree to which the job assignments are procedurized(i.e., structured or unstructured) 3) Position Power degree of influence a leader has over power variables such as hiring, firing, discipline, promotions and salary increases. Fiedler states that the better the leader-member relations, the more highly structured the job, and the stronger the position power, the more control the leader has. -Matching Leaders and Situations: combining the three contingency yields 8 possible situations in which leaders can find themselves. -Fiedler concluded that task-oriented leaders perform better in situations very favorable to them and very unfavorable. Relationship-oriented leaders, however, perform better in moderately favorable situations. -Fiedler condensed these 8 situations down to 3. He now says task-oriented leaders perform best in situations of high and low control, while relationship-oriented leaders perform best in moderate control situations. -Fiedler: There are only 2 ways to improve leader effectiveness: 1. change the leader to fit the situation

Employee-oriented leadership is similar to consideration, and production-oriented leadership is similar to initiating structure. *Followers of leaders high in consideration were more satisfied with their jobs, were more motivated, and had more respect for their leader. *initiating structure was more strongly related to higher levels of group and organization productivity and more positive performance evaluations. SUMMARY OF TRAIT & BEHAVIORAL THEORIES *Leaders who have certain traits and who display consideration and structuring behaviors do appear to be more effective. CONTINGENCY THEORIES *The relationship between leadership style and effectiveness suggested that under condition a, style x would be appropriate, whereas style y was more suitable for condition b, and style z for condition c. 3 1. 2. 3. approaches to isolating situational variables: the Fiedler model Hersey and Blanchards situational theory Path-goal theory

1. The Fiedler Contingency Model (Fred Fiedler) - proposes that effective group performance depends on the proper match between the leaders style and the degree to which the situation gives the leader control. - Identifying leadership style: Fiedler believes a key factor in leadership success is the individuals basic leadership style

2. change the situation to fit the leader by restructuring tasks or increasing or decreasing the leaders power to control factors such as salary increases, promotions, and disciplinary actions. OTHER CONTINGENCY THEORIES 1. Situational Leadership Theory (SLT) focuses on the followers -says successful leadership is achieved by selecting the right leadership style contingent on the followers readiness, or the extent to which they are willing and able to accomplish a specific task. -a leader should choose one of four behaviors depending on followers readiness If followers Able Unable are: Willing The leader The leader doesnt need needs to to do much display high task orientation to compensate for followers lack of ability and high relationship orientation to get them to buy into the leaders desires Unwilling The leader Leader needs needs to use a to give clear supportive and and specific participative directions style SLT acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation. 2. Path-goal theory (Robert House) - extracts elements from the Ohio State leadership research on initiating structure and consideration and the expectancy theory of motivation. -says that its the leaders job to provide followers with the information, support, or other resources necessary to achieve their goals.

-the term path-goal implies effective leaders clarify followers paths to their work goals and make the journey easier by reducing roadblocks.) -whether a leader should be directive or supportive or should demonstrate some other behavior depends on the complex analysis of the situation. It predicts the ff: o Directive leadership yields greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. o Supportive leadership results in high performance and satisfaction when employees are performing structured tasks. o Directive leadership is likely to be perceived as redundant among employees with high ability or considerable experience. 3. Leader-participation model (Victor Vroom & Phillip Yetton) - A leadership theory that provides a set of rules to determine the form and the amount of participative decision making in different situations. - Argues that the way the leader makes decisions is as important as what she or he decides. - Like P-GT, it says leader behavior must adjust to reflect the task structure. - Normative: provides a decision tree of 7 contingencies and 5 leadership styles for determining the form and amount of participation in decision making. Leader-Member Exchange (LMX) Theory - theory that supports leaders creation of in-groups and out-groups; subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction -argues that, because of time pressures, leaders establish a special relationship with a small group of their followers. *In-group: trusted, get a disproportionate amount of the leaders attention, and are more likely to receive special privileges

-Leaders induce LMX by rewarding those employees with whom they want closer linkage and punishing those with whom they do not. -Leaders and followers of the same gender tend to have closer (higher LMX) relationships than those of different genders. -research to test LMX theory has been generally supportive, with substantive evidence that leaders do differentiate among followers CHARISMATIC LEADERSHIP AND TRANSFORMATIONAL LEADERSHIP -common theme: they view leaders as individuals who inspire followers through their words, ideas, and behaviors. Charismatic Leadership Theory (Robert House) A leadership theory that states that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. Key Characteristics of charismatic leaders: a. they have a vision b. they are willing to take personal risks to achieve that vision c. they are sensitive to follower needs d. they exhibit extraordinary behaviors e. ...environmental sensitivity Individuals are born with traits that make them charismatic. Personality is also related to charismatic leadership; charismatic leaders are likely to be extraverted, self-confident, and achievement oriented. Individuals can be trained to exhibit charismatic behaviors. 3 step process: 1. Develop an aura of charisma by maintaining an optimistic view; using passion as a catalyst for generating enthusiasm; and communicating with the whole body, not just with words 2. Draw others in by creating a bond that inspires them to follow 3. Bring out the potential in followers by tapping into their emotions

4 step process on how charismatic leaders actually influence followers: 1. Begins with articulating an appealing vision, a long-term strategy for attaining a goal by linking the present with a better future for the organization. 2. A vision is incomplete without an accompanying vision statement, a formal articulation of an organizations vision or mission. 3. Through words and actions, the leader conveys a new set of values and sets an example for followers to imitate. 4. Charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision. Followers catch the emotions their leader is conveying. Research shows impressive correlations between charismatic leadership and high performance and satisfaction among followers. SITUATION 1. Charisma appears most successful when the followers task has an ideological component or the environment includes a high degree of stress and uncertainty. 2. Level in the organization: top executives create vision, and charisma probably better explains their successes and failures than those of lower-level managers. Its more difficult to utilize a persons charismatic leadership qualities in lower-level management jobs or to align his or her visions with the larger goals of the organization as a whole. 3. People are especially receptive to charismatic leadership when they sense a crisis, when they are under stress, or when they fear for their lives. An individual who lacks self-esteem and questions his or her self-worth is more likely to absorb a leaders direction rather than establish his or her own way of leading or thinking. Transformational Leadership

OSS, Fiedlers Model, and path-goal theory describe transactional leaders, who guide their followers toward established goals by clarifying role and task requirements. Transformational leaders inspire followers to transcend their self-interests for the good of the organization and can have an extraordinary effect on their followers. -pay attention to the concerns and needs of individual followers; they change followers awareness of issues by helping them look at old problems in new ways; and they excite and inspire followers to put out extra efforts to achieve group goals. The best leaders are transactional and transformational. Full Range of Leadership Model Transactional: Laissez-faire is the most passive and least effective of leader behaviors Management by exception: active or passive, is slightly better than laissez-faire, but its still considered ineffective. MBE leaders tend to be available only when there is a problem, which is often too late Contingent reward leadership: can be an effective style of leadership but will not get employees to go above and beyond the call of duty Only with the four remaining styles-all aspects of transformational leadership-are leaders able to motivate followers to perform above expectations and transcend their self-interest for the sake of the organization Individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence all result in extra effort from workers, higher productivity, higher morale and satisfaction, higher organizational effectiveness, lower turnover, lower absenteeism, and greater organizational adaptability. Based on this model, leaders are generally more effective when they regularly use each of the four transformational behaviors.

more propensity to take risks, and compensation plans geared toward long-term results, all of which facilitate corporate entrepreneurship. Transformational leadership - engenders commitment on the part of the followers and instills greater trust in the leader Has a greater impact on the bottom line in smaller, privately held firms than in more complicated organizations More effective in improving group potency in teams higher in power distance and collectivism Will not have much impact when group members are highly individualistic and dont readily cede decision-making authority

Transformational leadership is more strongly correlated than transactional leadership with lower turnover rates, higher productivity, lower employee stress and burnout, and higher employee satisfaction. Like charisma, it can be learned. In practice, Transformational L and Charismatic Leadership may be nearly equivalent. A leader who scores high on transformational leadership is also likely to score high on charisma. Authentic Leadership: Ethics and Trust are foundation of leadership Authentic leaders leaders who know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly. Their followers would consider them to be ethical people. Share information, encourage open communication, and stick to their ideals people come to have faith in them

Primary quality produced by authentic leadership: TRUST Socialized charismatic leadership a leadership concept that states that leaders convey values that are other centered versus self centered and who role-model ethical conduct. leaders are able to bring employee values in line with their own values through their words and actions.

In companies with transformational leaders, there is greater decentralization of responsibility, managers have

Trust a positive expectation that another will not act opportunistically Psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out And trustworthiness modulate the leaders access to knowledge and cooperation

Substitutes attributes, such as experience and training, than can replace the need for a leaders support or ability to create structure Neutralizers attributes that make it impossible for leader behavior to make any difference to follower outcomes Individuals Indifference to rewards neutralizes relationship- and task-oriented leadership

How is trust developed? Key Characteristics that lead us to believe a leader is trustworthy 1. Integrity honesty and truthfulness 2. Benevolence the trusted person has your interests at heart even if yours arent necessarily in line with theirs; caring and supportive behavior 3. Ability individuals technical and interpersonal knowledge and skills Trust propensity how likely a particular employee is to trust a leader Consequences of Trust 1. 2. 3. 4. Trust encourages taking risks Trusts facilitates information sharing Trusting groups are more effective Trust enhances productivity

*Leadership is simply another independent variable in our overall OB model Identification-based trust trust based on a mutual understanding of each others intentions and appreciation of each others wants and desires. CHAPTER 13: POWER AND POLITICS Power a capacity that A has to influence the behavior of B so that B acts in accordance with As wishes Power Does not require goal compatibility, merely dependence Does not -> Leadership Requires some congruence between the goals of the leader and those being led Focuses on downward influence on followers; minimizes the importance of lateral and upward influence patterns Research: for the most part, emphasizes style

Mentor a senior employee who sponsors and supports a less-experienced employee, called a protg. Attribution theory of leadership a leadership theory that says that leadership is merely an attribution that people make about other individuals. We attribute to leaders intelligence, outgoing personality, strong verbal skills, aggressiveness, understanding and industriousness Suggests that whats important is projecting the appearance of being a leader rather than focusing on actual accomplishments.

Research: focuses on tactics for gaining compliance; goes beyond the individual as the exerciser of power because groups as well as individuals can use power to control other individuals or groups

Dependency Bs relationship to A when A possesses something that B requires BASES OF POWER I. Formal Power

1. Coercive power a power base that is dependent on fear of the negative results from failing to comply 2. Reward power compliance achieved based on the ability to distribute rewards that others view as valuable; opposite of coercive power; people comply because it produces positive benefits; financial or non financial 3. Legitimate power the power a person receives as a result of his or her position in the formal hierarchy of an organization; broader than the power to coerce and reward II. Personal Power Personal power influence derived from an individuals characteristics 1. Expert power influence based on special skills or knowledge 2. Referent power influence based on identification with a person who has desirable resources or personal traits Which bases of power are more effective? Research suggests that the personal sources of power are most effective Both expert and referent power are positively related to employees satisfaction with supervision, their organizational commitment, and their performance

1. Legitimacy relying on your authority position or saying a request accords with organizational policies or rules 2. Rational persuasion presenting logical arguments and factual evidence to demonstrate a request is reasonable 3. Inspirational appeals developing emotional commitment by appealing to a targets values, needs, hopes, and aspirations 4. Consultation increasing the targets support by involving him or her in deciding how you will accomplish your plan 5. Exchange rewarding the target with benefits or favors in exchange for following a request 6. Personal appeals asking for compliance based on friendship or loyalty 7. Ingratiation using flattery, praise, or friendly behavior prior to making a request 8. Pressure using warnings, repeated demands, and threats 9. Coalitions enlisting the aid or support of others to persuade the target to agree Rational persuasion, inspirational appeals, and consultation tend to be the most effective, especially when the audience is highly interested in the outcomes of a decision process. Pressure tends to backfire and is the least effective of the 9 tactics. Political Skill the ability to influence others in such a way as to enhance ones objectives Sexual harassment any unwanted activity of a sexual nature that reflects an individuals employment and creates a hostile work environment Political behavior activities that are not required as part of a persons formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization Legitimate political behavior normal everyday politics: complaining to your supervisor, by-passing the chain of command, forming coalitions, obstructing organizational policies or decisions through inaction or excessive

Dependency: The Key to Power The General Dependency Postulate: the greater Bs dependency on A, the more power A has over B What creates dependency? Dependency increases when the resource you control is important, scarce and non substitutable. POWER TACTICS Power tactics ways in which individuals translate power bases into specific actions 9 distinct power or influence tactics:

adherence to rules, and developing contacts outside the organization through professional activities Illegitimate political behavior extreme political behavior that violates the implied rules of the game; include sabotage, whistle-blowing, and symbolic protests Factors contributing to political behavior 1. Individual factors employees who are high selfmonitors, possess an internal locus of control, and have a high need for power are more likely to engage in political behavior 2. Organizational factors Political activity is probably more a function of an organizations characteristics than of individual difference variables Defensive behaviors - reactive and protective behaviors to avoid action, blame, or change; often associated with negative feelings toward the job and work environment Avoiding action: over conforming, buck passing, playing dumb, stretching, stalling Avoiding blame: buffing, playing safe, justifying, scapegoating, misrepresenting Avoiding change: prevention, self-protection

Traditional View of Conflict the belief that all conflict is harmful and must be avoided Interactionist view of conflict the belief that conflict is not only a positive force in a group but also an absolute necessity for a group to perform effectively Functional conflict conflict that supports the goals of the group and improves its performance Dysfunctional conflict conflict that hinders group performance Task Conflict conflict over content and goals of the work Relationship conflict conflict based on interpersonal relationships Process conflict conflict over how work gets done Conflict Process a process that has five stages: potential opposition or incompatibility, cognition and personalization, intentions, behavior, and outcomes STAGE 1: Potential Opposition or Incompatibility Antecedent conditions *Communication *Structure *Personal variables STAGE 2: Cognition and Personalization *Perceived conflict awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise *Felt conflict emotional involvement in a conflict that creates anxiety, tenseness, frustration, or hostility STAGE 3: Intentions Intentions decisions to act in a given way Conflict-handling intentions: *Competing a desire to satisfy ones interests, regardless of the impact on the other party to the conflict

Impression management (IM) the process by which individuals attempt to control the impression others form of them. IM Techniques: 1. Conformity (ingratiation) 2. Favors (ingratiation) 3. Excuses (defensive) 4. Apologies (defensive) 5. Self-promotion (self-focused) 6. Enhancement (self-focused) 7. Flattery (assertive) 8. Exemplification (assertive)

CHAPTER 14: CONFLICT AND NEGOTIATION Conflict a process that begins when one party perceives another party has negatively affected, or is about to negatively affect, something that the first party cares about

*Collaborating a situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties *Avoiding a desire to withdraw from or suppress conflict *Accommodating the willingness of one party in a conflict to place the opponents interests above his or her own *Compromising a situation in which each party to a conflict is willing to give up something STAGE 4: Behavior Conflict management the use of resolution and stimulation techniques to achieve the desired level of conflict STAGE 5: Outcomes *Functional Outcomes *Dysfunctional Outcomes

*BATNA best alternative to a negotiated agreement; the least the individual should accept Individual differences in organization effectiveness 3 factors that influence how effectively individuals negotiate: 1. Personality 2. Mood/emotions 3. Gender Third party negotiations *Mediator a neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives *Arbitrator a third party to a negotiation who has the authority to dictate an agreement *Conciliator a trusted third party who provides an informal communication link between the negotiator and the opponent *Consultant an impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis

Negotiation a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them Bargaining strategies: 1. Distributive bargaining negotiation that seeks to divide up a fixed amount of resources; a win-lose situation *Fixed pie the belief that there is only a set amount of goods or services to be divvied up between the parties 2. Integrative bargaining negotiation that seeks one or more settlements that can create a winwin solution The negotiation process: 1. 2. 3. 4. 5. Preparation and planning Definition of ground rules Clarification and justification Bargaining and problem solving Closure and implementation