COMMERCE 1BA3 - Chapter 9

Leadership

The influence that particular individuals exert on the goal achievement of others in an organizational context

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

Formal leadership

Individuals formally assigned to a leadership role

Ex: manager, executive, supervisor

Expected to influence others, and given specific authority to direct employees

Informal leadership

Individuals emerge to occupy informal leadership roles

NO formal authority

Rely on being perceived as highly skilled to exert influence

Shared leadership

Emergent phenomenon whereby leadership roles and influence are distributed among team members

Trait theory of leadership

The belief that leadership depends on the personal qualities or traits of the leader

Assumption that fuels the trait theory of leadership

The assumption that those who become leaders and do a good hob of it possess a special set of traits that distinguish them from the masses of followers

Which of the big five dimensions of personality are related to leadership

All five!

Extraversion and conscientiousness are the most consistent predictors of leadership effectiveness

Limitations of the trait theory of leadership

* We don't know if the traits make the leader or the leadership makes the traits

* Doesn't say what leaders actually do to be successful

* Doesn't take into account the situation in which leadership occurs

Leadership categorization theory

People are more likely to view somebody as a leader and to evaluate them as a more effective leader when they possess prototypical characteristics of leadership

Consideration (leader behaviour)

The extent to which a leader is approachable and shows personal concern and respect for employees

Considerate leaders are friendly, supportive, and protective of group welfare

Initiating structure (leader behaviour)

The degree to which a leader concentrates on group goal attainment

Leaders with initiative are focused on accomplishing goals by organizing roles, planning, and dividing labour

Which of the two leader behaviour characteristics are more related to job performance and group performance?

Initiating structure

Rewards

Compliments, tangible benefits, and deserved special treatment

Effect of leader's reward behaviours on employee performance

When rewards are made contingent on performance, employees should perform at a high level and experience job satisfaction

Effect of leader's punishment behaviours on employee performance

When punishment is perceived as random, employees react negatively with great dissatisfaction

Punishment

Reprimands of unfavourable task assignments and the active withholding of raises, promotions, and other rewards

Situational theories of leadership

Argues that the effectiveness of a leadership style is contingent on the setting

Setting: characteristics of employees, nature of the task, characteristics of the organization

Two situational theories of leadership

Fielder's contingency theory

House's path-goal theory

Fiedler's contingency theory

The association between leadership orientation and group effectiveness is contingent on the extent to which the situation is favourable for exerting influence

Least Preferred Coworker (LPC)

A measure that assesses leaders' task or relationship orientation by having them rate their most difficult fellow worker

The LPC score is an attitude of the leader toward work relationships

What do LPC ratings tell us

High on LPC: the leader is relationship oriented

Low on LPC: the leader is task oriented

Situational favourableness (fiedler)

Specifies when a particular LPC orientation should contribute most to group effectiveness

Factors that affect situational favourableness (most important first)

* leader-member relations

* task structure

* position power

House's path-goal theory

Concerned with the situations under which various leader behaviours (directive, supportive, participative, achievement oriented) are most effective.

Situational factors (house)

Employee characteristics

* level of authoritarianism

* locus of control

* level of ability

Environmental factors

* nature of the task

* formal authority

Look at slideshow for more information

Leader effectiveness equation (house)

Leader effectiveness = leader traits + leader behaviours + group member characteristics + situation

Participative leadership

A leadership style in which the leader consults employees for their suggestions and input before making work-related decisions

Diagram on class 9 slide 16

Advantages of participative leadership

* motivation

* quality

* acceptance

Disadvantages of participative leadership

* time and energy

* loss of power

* lack of receptivity or knowledge

Conditions for participation

* employees feel favourably toward it

* employees are intelligent and knowledgeable about the issue at hand

* when the task is complex enough to make participation useful

Vroom & Jago's situational model of participation

Suggests various degrees of participation that a leader can exhibit

A - autocratic

C - consultative

G - group

AI (Vroom & Jago)

You solve the problem or make the decision yourself

AII (Vroom & Jago)

You obtain the necessary information from your employees, then decide the solution to the problem yourself

CI (Vroom & Jago)

You share the problem with the relevant employees individually, getting their ideas and suggestions, then you make the decision

CII (Vroom & Jago)

You share the problem with your employees as a group, obtaining their collective ideas and suggestions, then you make the decision

GII (Vroom & Jago)

You share the problem with your employees as a group and together you generate and evaluate alternatives and attempt to reach consensus on a solution

Leader-member exchange (LMX) theory

A theory of leadership that focuses on the relationship that develops between a leader and an employee

Based on social exchange relationship-based and the norm of reciprocity

LMX differentiation

The variability in the quality of LMX relationships between members of the same workgroup

Relationship between LMX and performance

Higher LMX means higher commitment, better performance, higher self-efficacy, better attitudes, and better creativity

Relationship between LMX differentiation and group performance

Higher differentiation leads to worsened group harmony and poorer group performance

Transactional leadership

Leadership that is based on a straightforward exchange relationship between the leader and the followers

Involves contingent reward behaviour (leader reward behaviour) and management by exception

Management by exception

Leadership that involves the leader taking corrective action on the basis of the results of leader-follower transactions

Transformational leadership

Leadership that provides followers with a new vision that instills true commitment

Transformational leadership is a consistent predictor of effective leadership

Behaviours that transformational leaders use to encourage effort and dedication

* Intellectual stimulation

* individualized consideration

* inspirational motivation

* charisma (most important)

Charisma

The ability to command strong loyalty and devotion from followers and thus have the potential for strong influence among them

Implicit leadership theory

States that individuals hold a set of beliefs about the kinds of attributes, personality characteristics, skills, and behaviours that contribute to or impede outstanding leadership

GLOBE project cultural dimensions

Performance orientation, assertiveness, future orientation, humane orientation, institutional collectivism, in-group collectivism, gender egalitarianism, power distance, uncertainty avoidance

Performance orientation

The degree to which a collective encourages and rewards its members for improvement and excellence in their performance

Assertiveness

The degree to which individuals are assertive, confrontational, and aggressive in their interactions with others

Future orientation

The extent to which individuals prepare for the future, for example, by delaying gratification, planning ahead, and investing in the future

Humane orientation

The degree to which a collective encourages and rewards individuals for their fairness, altruism, generosity, caring, and kindness to others

Institutional collectivism

The degree to which the institutional practices of organizations and society encourage and reward collective distribution of resources and collective action

In-group collectivism

The degree to which individuals express pride, loyalty, and cohesiveness in their families or organizations

Gender egalitarianism

The degree to which a collective minimizes gender inequality

Power distance

The degree to which members of a collective expect power to be distributed evenly

Uncertainty avoidance

The extent to which a society, organization, or group relies on social norms, rules, and procedures to lessen the unpredictability of future events

Six global leadership dimensions

* charismatic/value-based

* team-oriented

* participative

* humane-oriented

* autonomous

* self-protective

Universal facilitators of leadership

* trustworthiness, justice, and honesty

* foresight

* encouraging, motivating, confidence, positivity

* communication and team builder

Universal impediments to leadership

* loner and asocial

* irritable and uncooperative

* imposing views on others

Culturally contingent endorsement of leader attributes

* individualism

* being conscious of status

* taking risks

Global leadership

A set of leadership capabilities required to function effectively in different cultures and the ability to cross language, social, economic, and political borders

Glass ceiling

Invisible barrier that prevents women from advancing to senior leadership positions in organizations

Role congruity theory

Prejudice against female leaders is the result of an incongruity between the perceived characteristics of women and the perceived requirements of leadership roles

Communion

the aspect of belonging to a larger group and the well-being of others

* associated with femininity

Agency

Individual, personal self-improvement, and goal attainment

Glass cliff

When women and minorities are promoted to top management only when companies are failing (set up to fail without support)

How we can reduce gender inequality in leadership

* mentoring programs

* increasing awareness of drivers of prejudice

* avoiding tokenism

* ensure women are given appropriately demanding tasks

* encourage male participation in family-friendly benefits

List the new and emerging theories of leadership (positive leadership)

* empowering leadership

* ethical leadership

* authentic leadership

* servant leadership

Positive leadership

A group of theories that focus on leader behaviours and interpersonal dynamics that increase followers' confidence and result in positive outcomes

Empowering leadership

Implementing conditions that enable power to be shared with employees

* participation and autonomy in decision making

* employees experience feelings of meaning, competence, and impact

Ethical leadership

The demonstration of normatively appropriate conduct through personal actions and interpersonal relationships

* relationships of trust

* increases group ethical voice and psychological well-being

Authentic leadership

Leadership that involves being true to oneself

* act upon true values, beliefs, and strengths

* creates trust and well-being

* promotes self awareness, transparency, internalized moral perspective

Servant leadership

A form of leadership that involves going beyond one's own self-interests and having a genuine concern to serve others and a motivation to lead

* focuses on the needs of followers and their growth and development

* creates trust in management, positive perceptions of organizational justice, work attitudes, high OCBs