HROB 2090 Lecture 9: Chapter 9 – Continued

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Human Resources and Organizational Behaviour
HROB 2090

1. Chapter 9 – Continued Leader-Member Exchange (LMX) Theory • A theory of leadership that focuses on the relationship that develops between a leader and an employee. • It is a social exchange relationship-based approach to leadership. • Effective leadership processes result when leaders and employees develop and maintain high-quality social exchange relationships. • The basis for the effects of LMX is social exchange theory and the norm of reciprocity. Social Exchange Theory • Individuals who are treated favourably by others feel obliged to reciprocate by responding positively and returning that favourable treatment in some manner. • Employees in a high-quality relationship with their supervisor will reciprocate with extra effort and higher commitment and performance. Leader-Member Exchange (LMX) Theory (continued) • High LMX involves a high degree of mutual influence and obligation as well as trust, loyalty, open communication, and respect between a leader and an employee. • In high-quality relationships, employees perform tasks beyond their job descriptions. • Low LMX is characterized by low trust, respect, obligation, and mutual support. • In low-quality relationships, the leader provides less attention and latitude to employees. • Employees do only what their job descriptions and formal role requirements demand. Leader-Member Exchange (LMX) Theory: Research Evidence  Employees with higher quality LMX have higher self-efficacy, more positive work attitudes, and higher OCB and job performance.  Higher-quality LMX relationships result in positive outcomes for leaders, employees, work units, and organizations. Transactional Leadership • Transactional leadership is leadership that is based on a straightforward exchange relationship between a leader and followers. • Transactional leadership behaviour involves: – Contingent reward behaviour (leader reward behaviour) – Management by exception Management By Exception • Leadership that involves the leader taking corrective action on the basis of the results of leader-follower transactions. • The leader monitors follower behaviour, anticipates problems, and takes corrective actions before the behaviour creates serious problems. Transformational Leadership • Transformational leadership is leadership that provides followers with a new vision that instills true commitment. • Transformational leaders change the beliefs and attitudes of followers to correspond with a new vision and motivates them to achieve performance beyond expectations. • Popular examples of transformational leaders: Herb Kelleher, Michael Eisner, Steven Jobs, and Carly Fiorina. • Transformational leaders are usually good at the transactional aspects of clarifying the paths to goals and rewarding good performance. • What are the behaviours of these transformational leaders who encourage considerable effort and dedication on the part of followers? Behaviours of Transformational Leadership • There are four key dimensions of transformational leader behavour: – Intellectual stimulation – Individualized consideration – Inspirational motivation – Charisma Intellectual Stimulation • People are stimulated to think about problems, issues, and strategies in new ways. • This contributes to the “new vision” aspect of transformational leadership. • The leader challenges assumptions, takes risks, and solicits followers’ ideas. • It often involves creativity and novelty Individualized Consideration • This involves treating employees as distinct individuals, indicating concern for their needs and personal development, and serving as a mentor or coach when appropriate. • The emphasis is a one-on-one attempt to meet the concerns and needs of the individual in question in the context of the overall goal or mission. Inspirational Motivation • This involves the communication of visions that are appealing and inspiring to followers. • Leaders with inspirational motivation have a strong vision for the future based on values and ideals. • They stimulate enthusiasm, challenge followers with high standards, communicate optimism about future goal attainment, and provide meaning for the task at hand. • They inspire followers using symbolic actions and persuasion. Charisma • The ability to command strong loyalty and devotion from followers and thus have the potential for strong influence among them. • This is the most important aspect of transformational leadership. • Charisma provides the emotional aspect of transformational leadership. • The emergence of charisma is a complex function of traits, behaviours, and being in the right place at the right time. New and Emerging Theories of Leadership • Leadership research has begun to focus on the broader context of the leadership process. • This has led to the emergence of new forms of leadership behaviours and theories: – Empowering leadership – Ethical leadership – Authentic leadership – Servant leadership Empowering Leadership • Empowering leadership involves implementing conditions that enable power to be shared with employees. • Empowering leaders provide participation and autonomy in decision making. • Employees experience a state of psychological empowerment that consists of feelings of meaning, competence, self-determination, and impact. • Empowering leadership provides employees with a greater feeling of control over their work and a sense that they can make a difference in their organization’s effectiveness. • Empowering leadership has been found to be positively related to job performance and creativity-re
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