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    Leadership

    MGMT 612 - ICESI

    Professor Michael Burke

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    Objectives

    Recognize the differences between trait,

    behavioral, and contingency theories.

    Describegeneral leadership styles.

    Discuss distinctions between transactional and

    transformational leadership.

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    Leadership

    The process of providing direction and influencing

    individuals or groups to achieve goals.

    Similarly, Kaiser, Hogan, and Craig (2008) define leadership as:

    1) Influencing individuals to contribute to the good of the group, and2) Coordinating and guiding the group to achieve its goals.

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    Classes of Leadership Theories

    Leadership

    Trait

    Behavioral

    Contingency:Depending on situation

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    Trait Theories of Leadership

    Ambitionand Energy

    Desireto Lead

    Self-Confidence

    Honestyand Integrity

    Intelligence (IQ)& (EQ)

    Job-RelevantKnowledge

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    Leadership Attributes

    Universally Liked and Disliked

    (across 62 nations)

    Positive Leader Attributes Trustworthy

    Just

    Honest Plans ahead

    Encouraging

    Intelligent

    Communicative

    Based on responses from 17,000middle managers from 951organizations in 62 countries.

    Negative Leader Attributes Asocial

    Non-cooperative

    Irritable Non-explicit

    Egocentric

    Ruthless

    Dictatorial

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    What is the Takeaway

    from Trait Theories?Consider the inclusion of personality (Judges

    work) and other trait assessments in selection

    and promotion processes.Consider conducting management development

    programs to create awareness of traits and how

    they influence behavior.

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    Behavioral Theories

    Concentrated on leadership styles, and identifyingbehaviors that differentiated between effective andineffective leaders. University of Michigan Studies (job-centered and employee-

    centered styles)

    Ohio State Univ. Studies (initiating structure andconsideration)

    The Managerial Grid (concern for production and concern forpeople)

    Tended to focus on the one best style.

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    The Managerial Grid

    Adapted from Blake and Moutons Managerial Grid

    Concern

    forPeople

    High Concern

    Low Concern

    9

    8

    7

    6

    5

    4

    3

    21

    Concern for Production

    1 2 3 4 5 6 7 8 9Low Concern High Concern

    4,3style

    8, 7style

    2, 6

    style

    The best

    leadership style9,9

    style

    Grid Training helps leadersmove to a style high in both Concern for people

    Concern for production

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    What are the Takeaways from

    Behavioral Styles Theory?To some degree, we can shape leader behavior

    through interventions such as training.

    Research revealed that there is no one beststyle.

    Research pointed out that it is important to

    understand how frequently and howeffectively leaders exhibited various behaviors.

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    Contingency Theories

    Focused on leader style and situational characteristics(leader style should match situational demands).

    Fiedlers Theory Path-Goal Theory

    Complex and difficult to apply and do not necessarilyapply to rapidly changing environments.

    Takeaway: Consider the need to modify leadership stylewhen faced with strong situational demands (e.g., timepressures).

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    The Hunt for T-Rex

    A platform for discussing the nature of leadership

    behavior and issues such as: Clarity of purpose and

    goals, empowerment, focus on quality, contingency orsituational aspects of leadership.

    To reflect on how we make decisions as individuals and

    within groups and teams.

    To (possibly) demonstrate the synergistic effect that can

    be produced by effective team interaction.

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    Additional Perspectives

    on LeadershipLeader-Member Exchange: focuses on dyadicrelationship between manager and direct reports

    In-group vs. Out-group exchange: Mutual trust andrespect versus the lack thereof.

    Assessing your leader-member exchange: OBExercise

    Research Findings LMX related positively to job satisfaction, job

    performance and other outcomes.

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    LMX:

    Primary Management ImplicationsFor leaders: establish high-performance

    expectations forall direct reports, with high

    levels of communication.For subordinates:

    Focus on goals and what you can control.

    Use a problem-solving approach whendisagreements arise. This point always applies to

    leader.

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    Transactional Leadership

    Transactional leaders

    Display active management-by-exception behavior

    Display contingent reward behavior1. Understand what followers want to receive from their work, and

    attempt to give them what they desire, contingent on performance

    2. Clarify links between performance and reward

    3. Exchange rewards and promises of rewards for specified

    performance levels

    4. Respond to the interests of followers only if the followers are

    performing satisfactorily

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    Transformational Leadership

    Transformational leaders

    Motivate followers to Do more than expected (organizational vision and outcomes)

    Continuously develop and grow

    Increase their level of self-confidence

    Place the interests of the team or organization before their own

    Display charisma

    Intellectually stimulate their subordinates

    Provide individual consideration of subordinates

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    Leader Behaviors Leader Behaviors

    Articulate clear and appealingvision

    Communicate the vision

    Delegate significant authorityand responsibility

    Eliminate unnecessarybureaucratic restraints

    Promote cooperation andteamwork

    Encourage open sharing of ideasand concerns

    Encourage participative decision

    making Provide coaching, training and

    other developmental experiences

    Modify structure to promote keyvalues and objectives

    Transformational Leadership

    TransformationalLeader

    Individualconsideration

    Intellectualstimulation

    Charisma

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    What is the take-away from research on

    transformational leadership?

    Charisma, intellectual stimulation and individualconsideration (i.e., transformational leadership) arepositively related to organizational effectiveness onlyunder conditions of environmental uncertainty. Thus, followership is important people may not prefer a

    transformational leader under conditions of threat or whenfacing relatively routine coordination problems.

    In Vugt, Hogan, and Kaisers (2008) analysis, Except forcertain well-defined situations, people will perform better ifthey are left alone.

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    Leaders Leading Leaders

    Southwest Airlines

    LEADERSHIP is a dynamic relationship based onmutual influence and common purpose between

    leaders and collaborators in which both are moved to

    higher levels of motivation and moral development as

    they affect real, intended change.

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    How They Do It

    An Organization Level PerspectiveA Trait Approach:

    Proctor & Gamble (Cincinnati, OH), 135,000 employees. Hire for emotionalintelligence. Look for leadership experience, chairing the debate team, servingas church choir director, etc.

    A Behavioral Approach:

    General Electric (Fairfield, CT), 300,000 employees. Develops leaders throughtraining and on-line workshops.

    BBVA (Bilbao, Spain), 108,000 employees. Use peers and self-evaluations toidentify managers with participative style.

    A Contingency Approach:

    Hindustan Unilever (Mumbai, India), 15,000. Place the right people in the rightjobs, based on leader style from a leadership rating matrix.

    A Behavioral/Transformational Approach:

    Nokia (Espoo, Finland), 68,500 employees. The companys 12 executives meet 4to 5 times with protgs at VP level during a 6-month program, with on-the-jobfollow-up lessons and assessments of their ability to lead, teach, and inspire.

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    How They Do It

    A Global Perspective

    The GLOBE Study: Importance ofcultural values

    such as collectivism, power distance, avoidance

    of uncertainty, etc.Identification ofcultural clusters with more or

    less effective leadership styles.

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    Global Differences

    in Leadership

    Anglo cluster (ideal leader) Charismatic influence and inspiration, encouraging participation

    Diplomatic, delegating authority, allowing everyone to havetheir say

    Arabic cluster (ideal leader) Need to balance paradoxical set of expectations

    Expected not to differentiate themselves from others and have modeststyles

    Expected to have great deal of power and control, and to direct mostdecisions and actions

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    Global Differences

    in Leadership

    Germanic cluster (ideal leader) Charismatic

    Highly team-oriented

    Participative

    Southern Asia cluster (ideal leader) Humane, participative, and charismatic

    Expected to be benevolent while maintaining a strongposition of authority

    Implications for training and developing leaders?

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    Leadership Criteria

    Unit of Analysis: Individual Leader Ratings (Standing Out or Approval) of leader/manager effectiveness

    Common in leadership research

    Unit of Analysis: Group Process assessments (e.g., follower attitudes and actions)

    Outcomes (e.g., productivity, customer indicators, financial indicators)

    Generally, we know less about how leadership relates to group outcome criteriathan we do about leadership related to ratings of individual leader approval or

    group processes. But the evidence is clearly in favor of leadership and particularorganizational practices as influencing firm performance

    How do these points tie back to our discussion of organizational culture andorganizational climate?

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    Recap

    Trait, behavioral, and contingency theories of leadership

    have been proposed with each having important

    practice implications.Recent research and practice efforts have focused on

    LMX and transformational perspectives.

    Knowledge of leadership theories is helpful for certain

    well-defined situations, but people may do well in manycontexts with less emphasis on leadership/supervision.