Chapter 9: Leadership
What is Leadership?
• The influence that a particular individuals exert on the goal achievement of others in an organizational context
• An influence relationship among leaders and followers who intend real changes and outcomes that rect their shared purposes.
Leaders cannot exist without followers
• Some people in organizations occupy formal or assigned leadership roles with authority to direct employees
• Individuals might also emerge to occupy informal leadership roles. They do not have formal authority.
Why is leadership so important?
Subordinates who work for managers with good leadership skills will generally:
o Know how to achieve higher levels of performance
o Want to achieve higher levels of performance
o Like their jobs
Feel affectively committed to their organizations
o Want to stay in the organization
New reality for leadership:
(Are leaders born or made?)Search for leadership traits: the
OLD PARADIGM NEW PARADIGN
Stability Changes /crisis management assumption that those who become leaders and do a goal job of it
possess a special set of traits that distinguish them from others.
Control Empowerment Traits associated with leadership effect iveness: intelligence,
Uniformity Diversity energy, self-confidence, dominance, motivation lead, emotional
stability, honesty & integrity, need for achievement
Self-cantered Higher ethical purpose
Direction Planning & budgeting Creating vision & strategy
Keeping eye on bottom line Keeping eye on horizon
Alignment Organizing & staffing Creating shared culture & values
Directing & controlling Helping other grow
Creating boundaries Reducing boundaries
Relationships Focusing on objects – producing/selling Focusing on people- inspiring & motivating followers; Based
goods/services on personal power; Acting as coach, facilitator, servant
Based on position pow er
Acting as boss
Personal Emotional distance; talking; insight into Emotional connections, listening, nonconformit y, insight into
qualities organization self
Outcomes Maintains stability; creates culture of Creates change and a culture of integrity
Research on leadership traits : 3 of the big five dimensions of personality (agreeableness, extraversion, openness to experience) are
related to leadership behaviors. Intelligence is related to leadership but not as strongly as previously thought
Limitations of the trait approach
• Do traits make the leader of does the opportunity for leadership produces the traits?
• Does not tell us what leaders do to influence others successfully
• It does not take into account the situation in which leadership occurs
The behaviour of leaders
• The most involved, systematic study of leadership was begun at Ohio State University in the 1940s . Employees described their
superiors along a number of behavioural dimensions
• The results revealed two basic kinds of behaviour: ( both contribute positively to employee’s motivation, job satisfaction and
leader effectiveness; the relatively importance of both varies according to the nature of the leadership situation.)
• The extent to which a leader is approachable and shows personal concern and respect for employees
• The considerate leader is friendly and egalitar平等主义的 ), expressed appreciation表示赞赏认同 )and support,
and is protective of group welfare
• Consideration is more strongly related to follower satisfaction, motivation, and leader effectiveness.
• The degree to which a leader concentrates on group goal attainment
• Initiating structure is slightly more strongly related to leader job performance and group performance • The structuring leader:
§ Clearly defines and organizes her role and the roles of followers
§ Stresses standard procedures and schedules the work to be done
§ Assigns employees to particular tasks Situational theories of leadership
The situation refers to the setting in which influence attempts occur
• The basic premise - the effectiveness of a leadership style is contingent on the setting
• The situational theories o f leadership that are among the best know n and most studied
1. Fiedler's contingency theory
• Leader success is contingent upon (depends on) the extent to which the situation is favourable for exerting influence
o Situational favourability:
• Leader-member relations: when the relationship between the leader and the group members is good, the leader is in a
favourable situation to exert influence. A poor relationship could lead to sabotage or insubordination.
• Task structure: when the task at hand is highly structu red, the leader should be able to exert considerable influence on
• Position power: the formal authority granted to the leader by the organization to tell others what to do. The more
position power, the more favourable is the leadership situatio n.
• Some situations are more favourable than others, and these situations require different orientations on the part of the lrade
o Either a task or relationship. Something: @
Least preferred co-worker is a current or past co -worker with whom a leader has had a difficult time accomplishing a task.
Predictions of leader effectiveness from Fiedler's Contingency theory of leadership (exhibit 9.2)
The Path-Goal Theory of Leadership (exhibit 9.3)
• The effective leader forms a connection between employee goa ls and the organizational goals. To provide job satisfaction and
leader acceptance, leader behaviour must be perceived as immediately satisfying or as leading to future satisfaction (p.269 f or more
information on the diagram)
Participative Leadership: Inv olving Employees in Decisions
• Participative Leadership means involving employees in making work -related decisions
• Leaders can vary in the extent to which they involve employees in decision making
• Minimally, participation involves obtaining employee opini ons before making a decision.
• Maximally, it allows employees to make their own decisions within agreed -on limits
• Participation can involve individual employees or the entire group of employees
• The choice of an individual or group participation strategy sho uld be tailored to specific situations
• Vroom and Jago look at a model of participation (see book p. 300)
Path clarification Increase rewards
Leader defines what follower must do to Leader learns follower’s needs
attain work outcomes
Leader clarifies follower’s work role Leader matches follower’s needs to rewards if work outcomes are
Follower has increased knowledge & Leader increases value of work outcomes for follower
confidence to accomplish outcomes Follower displays increased effort an d motivation
Organizational work outcomes are accomplished
Situation Leader behavior Impact on follower outcomes
Followers lack Supportive leadership Increases confidence to achieve work outcomes Increased effort;
Ambiguous job Directive leadership Clarifies path to reward performance
Lack of job Achievement Set and strive for high goals
challenge oriented L
Incorrect reward Participative L Clarifies followers needs to change reward
Chapter 12: Power, P olitics and Ethics
I. What Is Power?
• Power is the capacity to influence others who are in a state of dependence.
• This does not necessarily imply that a poor relationship exists between the power holder and the target, as most friendships involve
reciprocal influence processes. It is not always perceived or exercised.
• Power can flow in any direction in an organization, although members at higher levels typically have more power.
• Power is a broad concept that applies to individuals as well as to groups.
II. The Bases of Individual Power
Power can be found in the position that you occupy in the organization or the resources that you are able to command.
• Legitimate power derives from a person's position or job in the organization. It constitutes the organization's judgment about who
is formally permitted to influence whom, and it is often called authority. As we move up the organization's hierarchy, we fin d that
members possess more and more legitimate power. Legitimate power works because people have been soc ialized to accept its
influence. Even across various cultures, employees cite legitimate power as a major reason for following their boss's direc tions
• Reward power exists when the power holder can exert influence by providing positive outcomes and preventing negative
outcomes. It corresponds to the concept of positive reinforcement. It is often used to back up legitimate power.
• Coercive power is available when the power holder can exert influence by the use of punishment and threat . Although it too is
employed as a support for legitimate power, its use by managers is generally ineffective and can provoke employee resistance.
• Referent power exists when the power holder is well liked by others. It is potent because it stems from identification with the
power holder and represents a truer or deeper base of power than reward or coercion. Second, anyone in the organiza tion may
possess referent power.
• Expert power is derived from having special information or expertise that is valued by an organization. This power can be
obtained by lower-level organizational members and is especially likely to exist for those members in scientific and technical areas.
Of all the bases of power, expertise is most consistently associated with employee effectiveness. Employees perce ive women
managers as more likely than male managers to be high on expert power.
Employees will respond differently to the bases of power. Coercion is likely to produce resistance and lack of cooperation.
Legitimate power and reward power are likely to pro duce compliance with the boss’s wishes. Referent and expert power are most
likely to generate true commitment and enthusiasm for the manager’s agenda.
III. How Do People Obtain Power?
People obtain power in organizations by doing certain activities and d eveloping informal relationships with the right people.
A. Doing the Right Things : activities lead to power when they are extraordinary, highly visible, and especially relevant to the solution of
• Extraordinary Activities . Excellent performance in unusual or no routine activities is required to obtain power. Such activities include
occupying new positions, managing substantial changes, and taking great risks.
• Visible Activities. Extraordinary activities will fail to generate power i f no one knows about them. Therefore, people who seek power
must try to publicize their efforts and ensure that they are visible.
• Relevant Activities. Extraordinary, visible work may fail to generate power if no one cares. Activities must be relevant to th e needs of
the organization for power to accrue. Therefore, being in the right place at the right time and doing the right things are im portant in the
effort to gain power.
B. Cultivating the Right People : to obtain power, one must develop informal relatio nships with the right people. The right people can
include organizational subordinates, peers, and superiors as well as crucial outsiders. • Outsiders. Establishing good relationships with key people outside one's organization can lead to increased power wi thin the
• Subordinates. An individual can gain influence if she is closely identified with certain up -and-coming subordinates. Subordinates
can also provide power when a manager can demonstrate that he or she is backed by a cohesive team.
• Peers. Cultivating good relationships with peers is mainly a means of ensuring that nothing gets in the way of one's future
acquisition of power. As one moves up through the ranks, favours can be asked of former associates.
• Superiors. Liaisons with key superio rs probably represent the best way of obtaining power through cultivating others. Mentors, for
example, can provide special information and useful introductions to other "right people."
IV. Empowerment – Putting Power Where It Is Needed
Power need not be seen as something of fixed quantity that must necessarily be in short supply at the bottom of the organization if it is
largely held at the top.
• Empowerment gives people the authority, opportunity, and motivation to take initiative and solve organizational problems.
• People who are empowered have a strong sense of self -efficacy.
• Empowering lower-level employees can be critical in service organization.
• Empowerment fosters job satisfaction and high performance
Authority comes from pushing legitimate power down to lower levels so that decisions can be made by those with the information to make them.
Opportunity means freedom from bureaucratic barriers and any relevant training and information about the impact of one'ons on other parts of the
organization. The motivation part of empowerment works when people are intrinsically motivated by power and opportunity and see their rewar ds
linked to their performance. People who are empowered have a strong sense of self -efficacy, the feeling that they are capable of doing their jobs well
and "making things happen." Empowering lower -level employees can be critical in service organizations, where providing customers with a good initial
encounter or correcting any problems that develop can be essential for repeat busine ss. There is also growing evidence that empowerment fosters job
satisfaction and high performance. Used properly, empowerment puts power where it is needed to make the organization effectiv e.
V. Influence Tactics -Putting Power to Work
Power is the potential to influence others. Influence tactics are tactics that are used to convert power into actual influence over others.
These tactics include assertiveness, ingratiation, rationality, exchange, upward appeal, and coalition formation. Which tacti cs are used
may be influenced by the power bases of the individual exercising power and who you are trying to influence. Men using ration ality as an
influence tactic received better performance evaluations, earned more money, and experienced less work stress. A partic ularly ineffective
influence style is a "shotgun" style that is high on all tactics with particular emphasis on assertiveness and exchange.
VII. Controlling Strategic Contingencies - How Subunits Obtain Power
Subunit power is the degree of power held by various organizational subunits, such as departments. They obtain this power through the
control of strategic contingencies, which are critical factors affecting organizational effectiveness that is controlled by a key subunit.
This means that the work perfo rmed by other subunits is contingent on the activities and performance of a key subunit. Again, we see the
critical role of dependence in power relationships. The conditions under which subunits can control strategic contingencies i nvolve
scarcity, uncertainty, centrality, and substitutability.
• Scarcity: Subunits tend to acquire power when they are able to secure scarce resources that are important to the organization as a
whole. When resources such as budget dollars become scarce, subunits that are able to secure additional resources from outside the
organization can obtain power. For example, university departments that have the ability to bring in external funding through
consulting contracts and research grants gain power in this way.
• Uncertainty: Since organizations dislike uncertainty, those subunits with the ability to cope with the unexpected are most likely to
obtain power. Those functions that can provide the organization with greater control over what it finds problematic and can c reate
more certainty will acquire more power. The intervention of governments into human resource policies in recent years has allowed
human resource departments to gain power by coping with the various uncertainties.
• Centrality: Subunits whose activities are most central to the workflow of the organization are more apt to obtain power than those
whose activities are more peripheral. They are central to the extent that they influence the work of most other subunits; whe n they
have an especially crucial impact on the quantit y or quality of the organization's key product or service; or their impact is more
immediate compared to other subunits.
• Substitutability: A subunit will have relatively little power if others inside or outside the organization can perform its activities.If
the subunit's staff is no substitutable, however, it can acquire power. One crucial factor here is the general labour market for the
specialty performed by the subunit. For example, engineers will have more power when there are few of them, than when th eir
numbers increase. Having refined technical skills also impacts substitutability, as does the ability of an organization to subcontract
for skills outside. If work can be contracted out, the power of the subunit that usually performs these activities is reduced.
IX. Ethics in Organizations
• Ethics can be defined as systematic thinking about the moral consequences of decisions.
• Moral consequences can be framed in terms of the potential for harm to any stakeholders in the decision.
• Stakeholders are people inside or outside of an organization who have the potential to be affected by organizational decisions.
Research shows that managers overwhelmingly agree that unethical practices occur in business. Many report pressure to comprom ise
their own ethical standards, but most feel that they are more ethical than average. Research also shows that business students have looser
ethical standards than practicing managers, at least when responding to written descriptions of ethical issues.
Causes of Unethical Behavi our
Although difficult to research, evidence does suggest a number of causes of unethical behaviour.
• Gain. The anticipation of healthy reinforcement for following an unethical course of action, especially if no punishment is expecte d,
should promote unethical decisions. • Role Conflict. Many ethical dilemmas that occur in organizations are actually forms of role conflict that get resolved in an unethical
• Competition. Stiff competition for scarce resources and the absence of competition can stimulate unet hical behaviour.
• Personality. An individual with a strong economic value orientation is more likely to behave unethically as well as those with a high
need for personal power (especially a "high Mach"), and a relatively unsophisticated understanding of mor al issues.
• Organizational and Industry Culture . Aspects of an organization's culture (and its subcultures) can influence ethics. The ethical
values of a given organization are often shaped by how the behaviour of highly visible role models is rewarded. Als o, some
industries seem to have more ethical crises than others although competition may be a factor. Corporate cultures that reward
unethical behaviour. A culture of greed and exclusive focus on positive financial results
Chapter 13: Conflict and Stress
What is Conflict?
• Interpersonal conflict: the process that occurs when one person, group, or organizational subunit frustrates the goal attainm ent of
another. Involves antagonistic attitudes and behaviours
Causes of conflict
• Group identification and interg roup bias:
o The identification with a particular group or class of people
o People develop a more positive view of their own “in group”
o Self-esteem is a critical factor
o When individuals or subunits are mutually dependent on each other to accompl ish their own goals
o It necessitates interaction and implies that each party has some power over the other
o Interdependence does not always lead to conflict
• Differences in power, status and culture
o Power: if dependence is not mutual, but one way
o Status: status differences provide little impetus for conflict when people of lower status are dependent on those higher status
Culture: when two or more very different cultures develop in an organization, the clash in beliefs and values caveresult in o
• Ambiguity: ambiguous goals, jurisdictions, or performance criteria can lead to conflict
• Scarce resources
o Conflict often surfaces in the process of power jockeying
o Limited budget money, secretarial support, or lab space can contribute to conflict
Types of conflict
o Relationship: conflict in relating to someone else (ex: personality clashes)
o Task: Conflict related to divergence on what needs to be done. Disagreements about the nature of work to be done. What the
goals are, and what the output is. (ex: differences of opinion abut goals or technical matters)
o Process: disagreements on how the work should be done. (ex: disagreements about responsibility, authority, resource
allocation, and who does what)
Conflict Dynamics (progression that escalates the conflict)
• When conflict begins, a number of events transpire:
o 'winning' the conflict becomes most important. Now individual are disagreeing in what should be done
o The parties conceal information from each other or distort it. You conceal info from other. Might have in fo that might help
others but won’t do it
o Each side becomes more cohesive
Contact with the opposite party is discouraged
o The opposite party is negatively stereotyped while the image of one's own position is boosted
o More aggressive people who are skilled at engaging in conflict may emerge as leader. Individuals who gain or prominent are
the ones that will encourage the conflict.
o When there is a conflict it tends to escalade. There’s a tendency to escalade because the above thing emphasize it
Approaches to Managing Organizations Conflict - Exhibit 13.1
• Avoiding: conflict is not de