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Chapter 9 / Slide 1 Chapter 9 Leadership 2011 Pearson Canada Inc. Chapter 9 / Slide 2 Learning Objectives Define leadership and discuss the role of formal and strategic leadership. Explain and critically evaluate the trait approach to leadership. Explain the concepts of leader consideration, initiating structure, reward, and punishment behaviour and their consequences. 2011 Pearson Canada Inc. Chapter 9 / Slide 3 Learning Objectives Describe and evaluate Fiedlers Contingency Theory, Cognitive Resource Theory, and Houses Path-Goal Theory. Explain how and when to use participative leadership using the Vroom and Jago model. Describe and evaluate Leader-Member- Exchange Theory. 2011 Pearson Canada Inc. Chapter 9 / Slide 4 Learning Objectives Discuss the merits of transactional and transformational leadership. Define and discuss ethical and authentic leadership. Explain the role that culture plays in leadership effectiveness and describe global leadership. Describe gender differences in leadership and explain why women are underrepresented in leadership roles in organizations. 2011 Pearson Canada Inc. Chapter 9 / Slide 5 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 6 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 organizations stakeholders and they focus on the future. 2011 Pearson Canada Inc. Chapter 9 / Slide 7 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. Individuals might also emerge to occupy informal leadership roles. They do not have formal authority. 2011 Pearson Canada Inc. Chapter 9 / Slide 8 Are Leaders Born? The Search for Leadership Traits The assumption that those who become leaders and do a good job of it possess a special set of traits that distinguish them from others. 2011 Pearson Canada Inc. Chapter 9 / Slide 9 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. Some traits are associated with leadership. 2011 Pearson Canada Inc. Chapter 9 / Slide 10 Traits Associated with Leadership Effectiveness 2011 Pearson Canada Inc. Chapter 9 / Slide 11 Research on Leadership Traits (continued) Three of the “Big Five” dimensions of personality (agreeableness, extraversion, openness to experience) are related to leadership behaviours. Intelligence is related to leadership but not as strongly as previously thought. 2011 Pearson Canada Inc. Chapter 9 / Slide 12 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 does not take into account the situation in which leadership occurs. 2011 Pearson Canada Inc. Chapter 9 / Slide 13 Limitations of the Trait Approach (continued) Some traits are associated with leadership success. 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 14 The Behaviour of Leaders The most involved, systematic study of leadership was begun 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 2011 Pearson Canada Inc. Chapter 9 / Slide 15 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 16 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 17 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 18 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 19 The Consequences of Consideration and Structure: The Nature of the Situation When employees are under a high degree of pressure due to deadlines, unclear tasks, or external threat, initiating structure increases satisfaction and performance. When the task is intrinsically satisfying, the need for high consideration and high structure is generally reduced. 2011 Pearson Canada Inc. Chapter 9 / Slide 20 The Consequences of Consideration and Structure: The Nature of the Situation When the goals and methods of performing the job are very clear and certain, consideration should promote employee satisfaction, while structure should promote dissatisfaction. When employees lack knowledge as to how to perform a job, or the job itself has vague goals or methods, consideration becomes less important, while initiating structure takes on additional importance. 2011 Pearson Canada Inc. Chapter 9 / Slide 21 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 22 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 23 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 24 Leader Reward and Punishment Behaviours (continued) Leader contingent 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 25 Leader Reward and Punishment Behaviours (continued) The manner in which leaders administer rewards and punishment is a critical determinant of their effectiveness. Leader reward and punishment behaviour leads to more positive perceptions of justice and lower role ambiguity. 2011 Pearson Canada Inc. Chapter 9 / Slide 26 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 27 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. Two situational theories of leadership that are among the best known and most studied: Fiedlers Contingency Theory Houses Path-Goal Theory 2011 Pearson Canada Inc. Chapter 9 / Slide 28 Fiedlers 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 29 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 30 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 relatively unfavourably (a low LPC score) is considered to be task oriented. 2011 Pearson Canada Inc. Chapter 9 / Slide 31 Leadership Orientation (continued) Fiedler has argued that the LPC score reveals a personality trait that reflects the leaders 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 32 Situational Favourableness Situational favourableness is the “contingency” part of Contingency Theory. It specifies when a particular LPC orientation should contribute most to group effectiveness. 2011 Pearson Canada Inc. Chapter 9 / Slide 33 Situational Favourableness (continued) Factors that affect situational favourableness, in order of importance, are the following: Leader-member relations Task structure Position power 2011 Pearson Canada Inc. Chapter 9 / Slide 34 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 2011 Pearson Canada Inc. Chapter 9 / Slide 35 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 2011 Pearson Canada Inc. Chapter 9 / Slide 36 Predictions of Leader Effectiveness from Fiedlers Contingency Theory of Leadership 2011 Pearson Canada Inc. Chapter 9 / Slide 37 The Contingency Model 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 38 Research Evidence The 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 the theory. The theory needs some refinement. 2011 Pearson Canada Inc. Chapter 9 / Slide 39 Cognitive Resource Theory (CRT) A leadership theory that focuses on the conditions in which a leaders cognitive resources (intelligence, expertise, and experience) contribute to effective leadership. Leader intelligence is predicted to be most important when the leader is directive, the group supports the leader, and the situation is low-stress. In high-stress situations a leaders cognitive resources are impaired, so there his or her work experience will be most important. 2011 Pearson Canada Inc. Chapter 9 / Slide 40 Research Evidence Research supports the prediction that experience predicts performance in high-stress situations, while intelligence predicts performance in low-stress situations. Leader intelligence is more strongly related to group performance when the leader is directive and has the support of the group. CRT indicates that traits are important for leadership effectiveness in certain situations. 2011 Pearson Canada Inc. Chapter 9 / Slide 41 Houses Path-Goal Theory Robert Houses theory concerned with the situations under which various leader behaviours are most effective. Path-Goal Theory is concerned with leader behaviours. The most important activities of leaders are those that clarify the paths to various goals of interest to employees. 2011 Pearson Canada Inc. Chapter 9 / Slide 42 Houses Path-Goal Theory (continued) 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 43 Houses Path-Goal 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 44 Leader Behaviour Path-Goal Theory is concerned with four specific kinds of leader behaviour: Directive behaviour Supportive behaviour Participative behaviour Achievement-oriented behaviour 2011 Pearson Canada Inc. Chapter 9 / Slide 45 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 2011 Pearson Canada Inc. Chapter 9 / Slide 46 The Path-Goal Theory of Leadership 2011 Pearson Canada Inc. Chapter 9 / Slide 47 Situational Factors (continued) 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 do do respond best to directive leadership. When employees have low task abilities, they will appreciate directive leadership. 2011 Pearson Canada Inc. Chapter 9 / Slide 48 Situational Factors (continued) 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 49 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 50 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. The theory works better in predicting employees job satisfaction and acceptance of the leader than in predicting job performance. 2011 Pearson Canada Inc. Chapter 9 / Slide 51 Participative Leadership: Involving Employees in Decisions 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. 2011 Pearson Canada Inc. Chapter 9 / Slide 52 Participative Leadership: Involving Employees in Decisions (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. 2011 Pearson Canada Inc. Chapter 9 / Slide 53 Potential Advantages of Participative Leadership Motivation Participation can increase the motivation of employees. Quality Participation can enhance the quality of decisions. 2011 Pearson Canada Inc. Chapter 9 / Slide 54 Potential Advantages of Participative Leadership (continued) Acceptance Participation can increase the employees acceptance of decisions. This is especially important when issues of fairness are involved. 2011 Pearson Canada Inc. Chapter 9 / Slide 55 Potential Problems of Participative Leadership Time and Energy Participation requires specific behaviours on the part of the leader that use time and energy. Loss of Power Some leaders feel that a participative style will reduce their power and influence. 2011 Pearson Canad

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