business leadership and organizational behavior leadership and power craig w. fontaine, ph.d

Business Leadership and

Organizational Behavior

Business Leadership and

Organizational Behavior

Leadership and Power

Craig W. Fontaine, Ph.D.

Leadership DefinedLeadership Defined

General definition:

“The ability to positively influence people and systems to have a meaningful impact and achieve results”

In business:

“The increment of influence over and above an employee’s mechanical compliance with routine directives of the organization.”

What Is Leadership?What Is Leadership?

Leadership

The ability to influence a group toward the achievement of goals.

Management

Use of authority inherent in designated formal rank to obtain compliance from organizational members.

• Work in the system

• React

• Control risks

• Enforce organizational rules

• Seek and then follow direction

• Control people by pushing them in the right direction

• Coordinates efforts

• Provide instructions

• Work on the system

• Create opportunities

• Seek opportunities

• Change organizational rules

• Provide a vision to believe in and strategic alignment

• Motivate people by satisfying basic human needs

• Inspire achievement and energize people

• Coach followers, create self-leaders and empower them

Leadership vs. ManagementLeadership vs. Management

Leaders Managers

Agenda

Staff handling

Execution

Outcomes

Leadership Management

Establishing Direction

•Develop future vision

•Develop change strategies to achieve vision

Aligning People

•Communicate directly by words & deeds to those whose cooperation needed

•Influence creation of coalitions that understand & accept vision and strategies

Motivating/inspiring

•Energy to overcome barriers to change by satisfying basic needs

Tends to Produce

•Change often dramatic

•Provides potential for very useful change (ex. New products)

Planning/Budgeting

•Develop detailed steps/ timetables for results

•Allocate necessary resources

Organizing/Staffing

•Develop necessary planning, staffing, and delegation structures

•Provide policies/procedures for guidance and methods/systems for monitoring

Control/Problem Solving

•Monitor results vs. plan in detail

•Identify results/plan deviations and plan and organize to correct

Tends to Produce

•Order/predictability

•Key results expected by stakeholders

Early Leadership – Trait TheoriesEarly Leadership – Trait Theories

Trait Theories (1920s-30s)• Early on, it was thought that leaders were

born with inherent physiological traits• Age• Height• Eye Color

– Later research identified seven traits non-physical traits associated with successful leadership……

Seven Traits Associated with LeadershipSeven Traits Associated with Leadership

Source: S. A. Kirkpatrick and E. A. Locke, “Leadership: Do Traits Really Matter?” Academy of Management Executive, May 1991, pp. 48–60; T. A. Judge, J. E. Bono, R. llies, and M. W. Gerhardt, “Personality and Leadership: A Qualitative and Quantitative Review,” Journal of Applied Psychology, August 2002, pp. 765–780.

Trait Theories – Summary of findingsTrait Theories – Summary of findings

Research found:Research found:

• No universal traits that predict leadership No universal traits that predict leadership in all situations.in all situations.

• Unclear evidence of the cause and effect Unclear evidence of the cause and effect of relationship of leadership and traits.of relationship of leadership and traits.

• Traits are a better predictor of the Traits are a better predictor of the indealized appearance of leaders than indealized appearance of leaders than determing effective and ineffective leaders.determing effective and ineffective leaders.

Research found:Research found:

• No universal traits that predict leadership No universal traits that predict leadership in all situations.in all situations.

• Unclear evidence of the cause and effect Unclear evidence of the cause and effect of relationship of leadership and traits.of relationship of leadership and traits.

• Traits are a better predictor of the Traits are a better predictor of the indealized appearance of leaders than indealized appearance of leaders than determing effective and ineffective leaders.determing effective and ineffective leaders.

Behavioral TheoriesBehavioral Theories

• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from non-leaders.

• Behavioral Theories

– University of Iowa Studies (Kurt Lewin)• Identified three leadership styles:

– Autocratic style: centralized authority, low participation

– Democratic style: involvement, high participation, feedback

– Laissez faire style: hands-off management

• Research findings: mixed results

– No specific style was consistently better for producing better performance

– Employees were more satisfied under a democratic leader than an autocratic leader.

Behavioral Theories (continued)Behavioral Theories (continued)

Behavioral Theories (cont’d)

– Ohio State Studies

• Identified two dimensions of leader behavior

– Initiating structure: the extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment.

– Consideration: The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.

• Research findings: mixed results

– High-high leaders generally, but not always, achieved high group task performance and satisfaction. (see managerial grid)

– Evidence indicated that situational factors appeared to strongly influence leadership effectiveness.


• Behavioral Theories (cont’d)

– University of Michigan Studies

• Identified two dimensions of leader behavior

– Employee oriented: emphasizing personal relationships

– Production oriented: emphasizing task accomplishment

• Research findings:

– Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction.


The Managerial Grid – Summaries Behavior TheoriesThe Managerial Grid – Summaries Behavior Theories

Managerial Grid

– Appraises leadership styles using two dimensions:

• Concern for people

• Concern for production

– Places managerial styles in five categories:• Impoverished management

• Task management

• Middle-of-the-road management

• Country club management

• Team management

TheManagerialGrid

TheManagerialGrid

Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.

Contingency Theories of LeadershipContingency Theories of Leadership

The Fiedler Model

– Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence.

– Assumptions:

• A certain leadership style should be most effective in different types of situations.

• Leaders do not readily change leadership styles.

– Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

Contingency Theories… (cont’d)Contingency Theories… (cont’d)

The Fiedler Model (cont’d)

– Least-preferred co-worker (LPC) questionnaire

• An instrument that purports to measure whether a person is task or relationship oriented.

– Situational factors in matching leader to the situation:

• Leader-member relations

• Task structure

• Position power

Fiedler’s Model: Defining the SituationFiedler’s Model: Defining the Situation

Leader-Member Relations

The degree of confidence, trust, and respect subordinates have in their leader.

Position Power

Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

Task Structure

The degree to which the job assignments are procedure driven.

Findings from Fiedler ModelFindings from Fiedler Model

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

Situational Leadership Theory (SLT)

A contingency theory that focuses on followers’ readiness.

Leader: decreasing need for support and supervisionLeader: decreasing need for support and supervision

Follower readiness: ability and willingness

Follower readiness: ability and willingness

Unable andUnable andUnwillingUnwilling

Unable butUnable butWillingWilling

Able andAble andWillingWilling

DirectiveDirective High Task and Relationship High Task and Relationship OrientationsOrientations

Supportive Supportive Participative Participative

Able andAble andUnwillingUnwilling

MonitoringMonitoring


Hersey and Blanchard’s Situational Leadership Theory (SLT)

– Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness.

• Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.

• Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.

– Leaders must relinquish control over and contact with followers as they become more competent.



– Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions:

• Telling: high task-low relationship leadership

• Selling: high task-high relationship leadership

• Participating: low task-high relationship leadership

• Delegating: low task-low relationship leadership



– Posits four stages follower readiness:

• R1: followers are unable and unwilling

• R2: followers are unable but willing

• R3: followers are able but unwilling

• R4: followers are able and willing

Source: Reprinted with permission from the Center for Leadership Studies. Situational Leadership® is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.

Hersey & Blanchard’s Model

Hersey & Blanchard’s ModelHersey & Blanchard’s Model


Leader Participation Model (Vroom and Yetton)– A leadership theory that provides a set of rules to

determine the form and amount of participative decision making in different situations.

– Contingencies :

• Decision significance

• Importance of commitment

• Leader expertise

• Likelihood of commitment

• Group support

• Group expertise

• Team competence

• Decide:Decide: Leader makes the decision alone and either announces Leader makes the decision alone and either announces or sells it to group.or sells it to group.

• Consult Individually:Consult Individually: Leader presents the problem to group Leader presents the problem to group members individually, gets their suggestions, and then makes members individually, gets their suggestions, and then makes the decision.the decision.

• Consult Group:Consult Group: Leader presents the problem to group Leader presents the problem to group members in a meeting, gets their suggestions, and then makes members in a meeting, gets their suggestions, and then makes the decision.the decision.

• Facilitate:Facilitate: Leader presents the problem to the group in a Leader presents the problem to the group in a meeting and, acting as facilitator, defines the problem and the meeting and, acting as facilitator, defines the problem and the boundaries within which a decision must be made.boundaries within which a decision must be made.

• Delegate:Delegate: Leader permits the group to make the decision within Leader permits the group to make the decision within prescribed limits.prescribed limits.

Source: Based on V. Vroom, “Leadership and the Decision-Making Process,” Organizational Dynamics, vol. 28, no. 4 (2000), p. 84.

Prescribed Approaches based on the specific contingencies Prescribed Approaches based on the specific contingencies


Path-Goal Model

– States that the leader’s job is to assist his or her followers in attaining their goals and to provide direction or support to ensure their goals are compatible with organizational goals.

– Leaders assume different leadership styles at different times depending on the situation:

• Directive leader

• Supportive leader

• Participative leader

• Achievement oriented leader

Path-Goal TheoryPath-Goal Theory

Cognitive Resource TheoryCognitive Resource Theory

Research Support:

• Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals.

• Less experienced people perform better in leadership roles under low stress than do more experienced people.

Research Support:

• Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals.

• Less experienced people perform better in leadership roles under low stress than do more experienced people.

Cognitive Resource Theory

A theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on the leader.

Leader–Member Exchange TheoryLeader–Member Exchange Theory

Leader-Member Exchange (LMX) Theory

Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

Leader-Member Exchange TheoryLeader-Member Exchange Theory

Contemporary Views on LeadershipContemporary Views on Leadership

Transactional Leadership

– Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

Transformational Leadership

– Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements.

– Leaders who also are capable of having a profound and extraordinary effect on their followers.

Contemporary Views…(cont’d)Contemporary Views…(cont’d)

Charismatic Leadership

– An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways.

– Characteristics of charismatic leaders:• Have a vision.

• Are able to articulate the vision.

• Are willing to take risks to achieve the vision.

• Are sensitive to the environment and follower needs.

• Exhibit behaviors that are out of the ordinary.


Visionary Leadership

– A leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation.

Visionary leaders have the ability to:

– Explain the vision to others.

– Express the vision not just verbally but through behavior.

– Extend or apply the vision to different leadership contexts.


Team Leadership Characteristics

– Having patience to share information

– Being able to trust others and to give up authority

– Understanding when to intervene

Team Leader’s Job

– Managing the team’s external boundary

– Facilitating the team process

• Coaching, facilitating, handling disciplinary problems, reviewing team and individual performance, training, and communication

Team Leadership RolesTeam Leadership Roles

Gender & LeadershipGender & Leadership

Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75.

Of the 425 high-level executives evaluated, each by about 25 people, women execs won higher ratings on 42 of the 52 skills measured.


New Hiring Bias– ''I would rather hire a woman,'' says Anu Shukla, who sold her Internet marketing-software company Rubric Inc. earlier this year for $390 million. ''I know I'm going to get a certain quality of work, I know I'm going to get a certain dedication,'' she says, quickly adding that she's fully aware that not all women execs excel.

– Brent Clark, CEO of Grand Rapids-based Pell Inc., the nation's largest foot-care chain, says he would choose a woman over a man, too. Women are more stable, he says, less turf-conscious, and better at ''all sorts of intangibles that can help an organization.''



So why don’t more women have upper management jobs?– Women get stuck in HR or PR (Glass Elevator)

– Some businesses view women as “work horses, well-suited for demanding careers in middle management but not for prime jobs”• Thus, many leave to start their own companies


Race & Leadership Race & Leadership

Little research comparing white leaders vs. leaders of color

Leaders are effective but leadership style differs– Thailand - close directive supervision– U.S. - democratic participative approach– Mexico - autocratic directive approach

Cultural differences must be considered in managing people from different countries and cultural backgrounds

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Leadership and PowerLeadership and Power

Leaders use power as a way to attain group goals, and power is a means for facilitating their achievement

A Definition of PowerA Definition of Power

A B

Contrasting Leadership and PowerContrasting Leadership and Power

Leadership– Focuses on goal

achievement.– Requires goal

compatibility with followers.

– Focuses influence downward.

Power– Used as a means

for achieving goals.

– Requires follower dependency.

– Used to gain lateral and upward influence.

Bases of Power – Formal (3)Bases of Power – Formal (3)

This is perhaps the most Powerful Source of Power !

Bases of Power - FormalBases of Power - Formal

Bases of Power - Personal PowerBases of Power - Personal Power

Power TacticsPower Tactics

• Legitimacy• Rational persuasion• Inspirational appeals• Consultation• Exchange• Personal appeals• Ingratiation• Pressure• Coalitions

12-49

Effectiveness of Influence TacticsEffectiveness of Influence Tactics

Rational persuasion, inspirational appeals and consultation are most effective

Pressure is least effective Using more than one compatible tactic at the

same time or sequentially increases chance of success

“Softer” tactics work better than “harder” tactics

12-50

CoalitionsCoalitions

An informal group bound together by the active pursuit of a single issue

Coalitions in organization often seek to maximize their size

More coalitions will likely be created when there is a great deal of task and resource interdependence

The more routine the task of a group, the greater likelihood that coalitions will form

Use of Power Tactics: From Most to Least Popular

Use of Power Tactics: From Most to Least Popular

Politics: Power in ActionPolitics: Power in Action

Politics Is in the Eye of the BeholderPolitics Is in the Eye of the Beholder

Factors That Influence Political Behaviors

Factors That Influence Political Behaviors

Employee Responses to Organizational Politics

Employee Responses to Organizational Politics

Defensive Behaviors

Defensive BehaviorsAvoiding Action:

• Overconforming

• Buck passing

• Playing dumb

• Stretching

• Stalling

Avoiding Action:

• Overconforming

• Buck passing

• Playing dumb

• Stretching

• Stalling

Avoiding Blame:

• Buffing

• Playing safe

• Justifying

• Scapegoating

• Misrepresenting

Avoiding Blame:

• Buffing

• Playing safe

• Justifying

• Scapegoating

• MisrepresentingAvoiding Change:

• Prevention

• Self-protection

Avoiding Change:

• Prevention

• Self-protection

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Implications for ManagersImplications for Managers

Accept the political nature of organizations Increase power by:

– Acquire the bases of power that are most useful (expert, referent)

– Use the power tactics that are most effective (consultation, inspirational appeal)

– Avoid tactics that tend to backfire (coercion)

Is Political Action Ethical?Is Political Action Ethical?

UtilitarianismUtilitarianismUtilitarianismUtilitarianism RightsRightsRightsRights JusticeJusticeJusticeJustice

business leadership and organizational behavior leadership and power craig w. fontaine, ph.d

Documents

prentice hall

business leadership

successful leadership

universal traits

organizational members

useful change

directioncontrol people

increment of influence