13. Leadership Power In Organizations

Defining Leadership

• Leadership ≠ merely holding a position of authority.
  • Being “the boss” does not automatically guarantee compliance or commitment from followers.
• Widely-accepted working definition
  • Leadership is the process of influencing the attitudes, beliefs, behaviors, and emotions of other people.
  • Influence presupposes power; without power, attempts at leadership remain ineffective.

Power: Foundations & Typologies

French & Raven (1959) – 5 Bases of Power

• Expert Power
  • Stems from specialized knowledge, credibility, or technical expertise.
  • Followers comply because they believe “this person knows best.”
• Referent Power
  • Rooted in admiration, respect, or a desire for association.
  • Charisma, status, likability → “I want to be like them.”
• Legitimate Power
  • Derives from formal position or title (e.g., manager, supervisor).
  • Institutionalized right to request behaviors.
• Reward Power
  • Capacity to grant positive outcomes: \text{bonuses}, promotions, desirable tasks, pay raises.
• Coercive Power
  • Capacity to impose negative consequences: disciplinary actions, salary cuts, termination.

Yukl (1989) – Political Power Within Organizations

• Focuses on political action: tactics used to obtain & protect organizational power.
• Three primary mechanisms:
  1. Controlling decision processes – shaping agendas, timing, or information to steer outcomes.
  2. Forming coalitions – exchanging support (“you back my project, I back yours”).
  3. Co-opting opposition – diffusing resistance by inviting critics to share in decisions.

Political Skill (Ferris et al., 2005)

• A social effectiveness construct – “street smarts” for organizational life.
• Four dimensions:
  1. Social Astuteness – keen insight into motives & dynamics.
  2. Interpersonal Influence – adaptive, convincing communication.
  3. Networking Ability – cultivating diverse, resource-rich relationships.
  4. Apparent Sincerity – projecting (and/or possessing) authenticity & integrity.
• Outcome: Politically skilled leaders typically achieve higher leader effectiveness, greater follower commitment, and smoother navigation of politics.

Major Leadership Theories & Approaches

• Seven central frameworks covered:
  1. Trait Approach
  2. Leader Behavior Approach
  3. Fiedler’s Contingency Theory
  4. Path–Goal Theory
  5. Leader–Member Exchange (LMX)
  6. Transformational Leadership
  7. Vroom–Yetton Decision Model

1. Trait Approach – “Who Becomes / Excels as a Leader?”

• Premise: Certain stable personal characteristics predict leadership.
• Research streams:
  • Employee Selection – correlating traits (e.g., cognitive ability) with managerial performance.
  • Leader Emergence – laboratory groups studied to see who naturally takes charge.
• Meta-analysis (Judge, Bono, Ilies & Gerhardt, 2002):
  • Effective & emergent leaders score high on the Big Five personality traits.
• Application: Use trait assessments in hiring / succession planning.

2. Leader Behavior Approach – “What Do Leaders Actually Do?”

• Argues behavior, not identity, drives leadership success.
• Leadership Style = consistent clusters of behaviors (e.g., participative vs. autocratic).
• Stogdill (1963) dimensions:
  • Consideration – warmth, support, concern for employee welfare.
  • Initiating Structure – clarifying roles, setting goals, scheduling work.
• Empirical finding: Low consideration + High structure ➔ ↑ grievances & turnover; High consideration + Low structure ➔ ↑ satisfaction & retention.
• Practical takeaway: Balance task clarity with genuine relational care.

3. Fiedler’s Contingency Theory – “Match Leader to Situation”

• Leadership effectiveness = f(leader’s motivation, situational control).
• Diagnosing leader motivation via Least Preferred Coworker (LPC) scale:
  • High LPC → relationship-motivated (values harmony).
  • Low LPC → task-motivated (values goal achievement).
• Situational control determined by three factors:
  1. Leader–member relations – quality of interpersonal rapport.
  2. Task structure – clarity & routine of assignments.
  3. Position power – formal authority to reward/punish.
• Predictions:
  • Low LPC leaders excel under very high OR very low control.
  • High LPC leaders excel under moderate control.
• Practical implication: Do not train leaders to change style; instead place them in contexts that fit their LPC orientation.

4. Path–Goal Theory – “Leader as Motivational Enhancer”

• Leader clarifies the path to valued goals & provides rewards.
• Four leadership styles (adopted flexibly):
  1. Supportive – shows concern; reduces stress.
  2. Directive – provides structure & expectations.
  3. Participative – solicits input; joint decisions.
  4. Achievement-Oriented – sets challenging goals; emphasizes excellence.
• Contingency variables:
  • Subordinate characteristics
  • Locus of control (internal vs. external)
  • Self-perceived ability (confidence / competence)
  • Task/situational characteristics – danger, repetitiveness, ambiguity.
• Example propositions:
  • Tedious, stressful tasks → use supportive style to raise morale.
  • Unstructured tasks with novice workers → use directive style for clarity.

5. Leader–Member Exchange (LMX) – “Dyadic Relationships Matter”

• Supervisors form unique relationships with each subordinate.
• Two categories:
  • Cadre / In-Group
  • Trusted confidants; receive consideration & participation.
  • Hirelings / Out-Group
  • Limited trust; experience directive oversight.
• Path to join cadre: Demonstrate dependability