business leadership and organizational behavior leadership craig w. fontaine, ph.d
TRANSCRIPT
Business Leadership and
Organizational Behavior
Business Leadership and
Organizational Behavior
Leadership
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.”
Difference between Leadership & Management Difference between Leadership & Management
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
How they Operate:How they Operate:
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
Overview of Leadership TheoriesOverview of Leadership Theories
Trait theories (1920s-30s)
Behavioral theories (1960s-70s)
University of Iowa studies (Kurt Lewin)
Ohio State University studies
University of Michigan studies
Blake & Mouton Managerial Grid
Contingency & Situational Theories (1970’s….on)
Fielder’s contingency model
Hersey & Blanchard’s Situational Leadership Theory
Vroom & Yetton’s Leadership Decision Making Model
House’s Path-Goal Theory
Contemporary Views of Leadership
Transactional/Transformational
Charismatic
Visionary
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 idealized appearance of leaders than idealized appearance of leaders than determining effective and ineffective determining effective and ineffective leaders.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 idealized appearance of leaders than idealized appearance of leaders than determining effective and ineffective determining effective and ineffective leaders.leaders.
Transition to Behavioral TheoriesTransition to Behavioral 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 (continued)Behavioral Theories (continued)
• 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.
Behavioral Theories (continued)Behavioral Theories (continued)
The Managerial Grid – Summarzies Behaviora; TheoriesThe Managerial Grid – Summarzies Behaviora; 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.
Entering the Contingency/(Situational) Theories of LeadershipEntering the Contingency/(Situational) Theories of Leadership
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.
– Task oriented or relationship oriented
• 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.
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
Summary of Fiedler’s ModelSummary of Fiedler’s Model
“Fiedler's contingency theory is one of the contingency theories that states that there needs to be good leader-member relations, tasks with clear goals and procedures, and the ability for the leader to mete out rewards and punishments. When these three are lacking leadership will likely fail”
“Fiedler does not believe that leaders can adapt their styles to different situations. Because personality is relatively stable, Fiedler’s contingency model suggests that improving effectiveness requires changing the situation to fit the leader. This is called “job engineering.”
How Contingency Theories DifferHow Contingency Theories Differ
So Fielder’s Model proposed:
THE JOB BE ADAPTED TO THE LEADERS STYLE (task oriented or relationship oriented)
Other contingency/situational theories see things differently, managers are the ones who should adapt…
Hersey and Blanchard’s Situational Leadership TheoryHersey and Blanchard’s Situational Leadership Theory
The theory states that instead of using just one style, successful leaders should change their leadership styles based on the maturity of the people they're leading and the details of the task.
Using this theory, leaders should be able to place more or less emphasis on the task, and more or less emphasis on the relationships with the people they're leading, depending on what's needed to get the job done successfully.
Maturity LevelsMaturity Levels
According to Hersey and Blanchard, knowing when to use each style is largely dependent on the maturity of the person or group you're leading. They break maturity down into four different levels:
•M1 – People at this level of maturity are at the bottom level of the scale. They lack the knowledge, skills, or confidence to work on their own, and they often need to be pushed to take the task on.•M2 – at this level, followers might be willing to work on the task, but they still don't have the skills to complete it successfully.•M3 – Here, followers are ready and willing to help with the task. They have more skills than the M2 group, but they're still not confident in their abilities.•M4 – These followers are able to work on their own. They have high confidence and strong skills, and they're committed to the task.
Leadership StylesLeadership Styles
According to Hersey and Blanchard, there are four main leadership styles:
•Telling (S1) – Leaders tell their people what to do and how to do it.•Selling (S2) – Leaders provide information and direction, but there's more communication with workers. Leaders "sell" their message to get people on board.•Participating (S3) – Leaders focus more on the relationship and less on direction. The leader works with the team, and shares decision-making responsibilities.•Delegating (S4) – Leaders pass most of the responsibility onto the follower or group. The leaders still monitor progress, but they're less involved in decisions.
As you can see, styles S1 and S2 are focused on getting the task done. Styles S3 and S4 are more concerned with developing team members' abilities to work independently.
Mapping Maturity Levels to Leadership StyleMapping Maturity Levels to Leadership Style
The Hersey-Blanchard model maps each leadership style to each maturity level, as shown below:
Maturity Level Most Appropriate Leadership Style
M1: Low maturity S1: Telling/directing
M2: Medium maturity, limited skills
S2: Selling/coaching
M3: Medium maturity, higher skills but lacking confidence
S3: Participating/supporting
M4: High maturity S4: Delegating
.
Vroom & Yetton’s Leadership Decision Making ModelVroom & Yetton’s Leadership Decision Making Model
• Making good decisions is one of the main leadership tasks. This requires determining the most efficient and effective means of reaching the decision.
• Sometimes leaders need to take charge and decide what to do on your own. Other times it's better to make a decision using group consensus.
• However, leaders don't want to make autocratic decisions when team acceptance is crucial for a successful outcome. Nor do they always want your team in every decision you make – it is an inefficient use of time and resources. This means leaders have to adapt their leadership style to the situation and decision you are facing.
Note: Autocratic styles work some of the time, highly participative styles work at other times, and various combinations of the two work best in the times in between.
Prescribed Approaches based on the specific contingencies Prescribed Approaches based on the specific contingencies
Style: Autocratic – you make the decision and inform others of it.There are two separate processes for decision making in an autocratic style:
Processes: Autocratic 1(A1) – you use the information you already have and make the decision
Autocratic 2 (A2) – you ask team members for specific information and once you have it, you make the decision. Here you don't necessarily tell them what the information is needed for.
Style: Consultative – you gather information from the team and other and then make the decision.
Processes: Consultative 1 (C1) – you inform team members of what you're doing and may individually ask opinions, however, the group is not brought together for discussion. You make the decision.
Consultative 2 (C2) – you are responsible for making the decision, however, you get together as a group to discuss the situation, hear other perspectives, and solicit suggestions.
Style: Collaborative – you and your team work together to reach a consensus.
Process: Group (G2) – The team makes a decision together. Your role is mostly facilitative and you help the team come to a final decision that everyone agrees on.
• Vroom-Yetton Model distinguishes three styles of leadership, and five different processes of decision-making that leaders should consider using depending on the situation:
House’s Path-Goal TheoryHouse’s Path-Goal Theory
Path-Goal Model– Has its roots in the expectancy theory of
motivation.– The theory is based on the premise that an
employee’s perception of expectancies between his effort and performance is greatly affected by a leader’s behavior.
• States that the leader’s job is to assist their followers in attaining their goals and to provide direction or support to ensure their goals are compatible with organizational goals.
Path-Goal TheoryPath-Goal Theory
• Leaders do this in three ways:• Helping them identify and achieve their goals.• Clearing away obstacles, thereby improving
performance.• Offering appropriate rewards along the way.
• According to path-goal theory, a leader’s effectiveness depends on several employee and situational factors.
Path-Goal Theory – Leadership ApproachesPath-Goal Theory – Leadership Approaches
Leaders can use four different types of leadership:
•Supportive leadership – Here, you focus on relationships. You show sensitivity to individual team members' needs, and you consider your team members' best interests. This leadership style is best when tasks are repetitive or stressful.•Directive leadership – With this, you communicate goals and expectations, and you assign clear tasks. This style works best when tasks or projects are unstructured, or when tasks are complex and team members are inexperienced.•Participative leadership – With participative leadership, you focus on mutual participation. You consult with your group, and you consider their ideas and expertise before making a decision. This approach works best when your team members are experienced, when the task is complex and challenging, and when your team members want to give you their input.•Achievement-oriented leadership – Here, you set challenging goals for your team. You have confidence in your team's abilities, so you expect your team to perform well, and you maintain high standards for everyone. This style works best when team members are unmotivated or unchallenged in their work.
The best style to use is then dependent on the situational factors!!
Path-Goal Theory-Situational FactorsPath-Goal Theory-Situational Factors
The relationship between a leader’s style and effectiveness is dependent on the following variables:
•Employee characteristics: These include factors such as employees’ needs, locus of control, experience, perceived ability, satisfaction, willingness to leave the organization, and anxiety, for example:
• If followers are low on ability, a directive style of leadership may be unnecessary; instead a supportive approach may be preferable.
•Characteristics of work environment: These include factors such as task structure and team dynamics that are outside the control of the employee, for example:
• Routine tasks: a supportive style is more effective than a directive. • Non-routine tasks: the participative style works much better. • When team cohesiveness is low: a supportive leadership style is best.• When performance-oriented team norms exist: use directive or achievement
Path-Goal Theory Summary Path-Goal Theory Summary
• The theory has been subjected to empirical testing in several studies and has received considerable research support.
• This theory consistently reminds the leaders that their main role as a leader is to assist the subordinates in defining their goals, and accomplishing those goals in the most efficient and effective manner.
• This theory gives a guide map to the leaders about how to increase subordinates satisfaction and performance level.
Leader–Member Exchange TheoryLeader–Member Exchange Theory
• The theory asserts that leaders develop relationships with each member of their work group.
• Leaders create in-groups and out-groups.
• Relationship quality has been demonstrated to predict such outcomes as employee withdrawal or resignation, salary and promotion, productivity, job satisfaction, and organizational commitment.
• Factors include: personal compatibility, subordinate competence, and personality (extroversion)
Leader-Member Exchange TheoryLeader-Member Exchange Theory
Contemporary Views: Transactional –vs- Transformation
Contemporary Views: Transactional –vs- Transformation
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 – Charismatic LeadershipContemporary Views – Charismatic Leadership
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.
Contemporary Views – Visionary LeadershipContemporary Views – Visionary Leadership
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.
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.
Gender & LeadershipGender & Leadership
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.''
Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75.
Gender & LeadershipGender & Leadership
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
Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75.
Race/Ethnicity & Leadership Race/Ethnicity & 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