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Rotman Commerce

Chapter Nine- Leadership What is Leadership?  Leadership-the influence that particular individuals exert on the goal achievement of others in an organizational context  Effective leadership exerts influence in a way that achieves organizational goals by enhancing productivity, innovation, satisfaction and commitment of the workforce  Leadership involves going beyond formal role requirements to influence others  Indiv. might emerge to occupy informal leadership roles since they have no formal authorityreply on being well liked or perceived to have higher skills or influence Are Leaders Born? Search for Leadership Traits Research on Leadership Traits  Traits- indiv. characteristics such as physical attributes, intellectual ability and personality Traits associated w/ leadership  Intelligence  dominance  honesty and integrity  energy  emotional stability  need for achievement  self-confidence  motivation to lead  Big Five- agreeableness, extraversion and openness to experience are related to leadership  Most effective leaders have high levels of emotional intelligencealso related to job satisfaction Limitation of the Trait Approach  It is difficult to determine whether traits make the leader or whether the opportunity for leadership produces the traits  Traits approach fails to take into account the situation in which leadership occurs  Traits are only preconditions for certain actions that a leader must take to be successpossessing appropriate traits for leadership make it possible that certain actions will be taken to be successful, BUT traits alone is not sufficient for successful leadership Lessons from Emergent Leadership  Leadership is a form of influence; 1 way to influence is to TALK A LOT  Task leader- a leader who is concerned w. accomplishing a task by organizing others, planning strategy and dividing labour  Social-emotional leader- a leader who is concerned w. reducing tension, patching up disagreements, setting arguments and maintaining morale o Influence is more subtle than task influence  Task and social-emotional leadership are two important functions that must occur in group  Group must be structured and organized to accomplish its task  Organizations almost never appoint two formal leaders to a work groupthus, appointed leader must juggle the demands of the two distinctive role Behaviour of Assigned Leaders Consideration and Initiating Structure  Consideration-extent to which a leader is approachable and shows personal concern and respect for employees o Seen as friendly, egalitarian, expresses appreciation and is protective of group welfare o Related to social-emotional function in emergent leadership  Initiating structure-degree to which a leader concentrates on group goal attainment o Clearly defines and organizes his/her role and the roles of followers, stresses standard procedures and schedules the work to be done and assigns employees to particular tasks o Related to task function Consequences of Consideration and Structure  Both consideration and structure positive to employees’ motivation, job satisfaction, and leader effectiveness  Consideration more strongly related to satisfaction, motivation and leader effectiveness 1  Structure related to leader job performance and group performance Ex:  When employees under high degree of pressure due to deadlines, unclear task, external threat internal structure increases satisfaction and performance  When task is intrinsically satisfying consideration and structure is reduced  When goals and methods of performance is clear, consideration used to promote employee satisfaction  When employee lack knowledge on how to perform job, consideration less important than initiating Leader Reward and Punishment Behaviours  Leader reward behaviour-provides employees w/ compliments, tangible benefits made contingent on performance o Employees should perform at a high level and experience job satisfaction o Employees have a clear picture of what is expected of them o Understand that positive outcomes occur if they achieve these expectations  Leader punishment behaviour- leaders’ use of reprimands or unfavourable task assignments and the active withholding of rewards  Both are very effective  Contingent reward found to be positively related to employees’ perceptions (trust), attitudes (job satisfaction and commitment) and behaviour (effort and performance)  Contingent punishment related to employee perceptions, attitudes and behaviour  Noncontingent punishment behaviour is negatively related  Relationship were much stronger when rewards and punishment were made contingent on employee behaviour  Key to effective rewards and punishment is that it be administered contingent on employee behaviour and performance Situational Theories of Leadership  Situation refers to the setting in which influence attempts occur  Effectiveness of a leadership style is contingent on the setting Fiedler’s Contingency Theory  Contingency Theory- association b/t leadership orientation and group effectiveness is contingent on how favourable the situation is for exerting influence o Some situations are more favourable for leadership than others o Different situations require different orientations Leadership Orientation  Measures leadership through Least Preferred Co-worker (LPC)-a current or past co-worker with whom a leader has had a difficult time accomplishing a task unfriendly 1 2 3 4 5 6 7 8 Friendly unpleasant 1 2 3 4 5 6 7 8 pleasant  Leader who describes the LPC relatively favourable (high score) considered as relationship oriented o Despite the fact that LPC was difficult to work w/, still has positive qualities  Leader who describe LPC unfavourable considered task oriented o Think that low-task competence equals bad personality  Fiedler argues that LC reveals a personality trait that reflects the leader’s motivational striation  High LPC leaders are motivated to maintain interpersonal relations, while low LPC are motivated to accomplish the task  LPC not a measure of consideration or initiation which are observed behaviours o LPC are attitudes of leader towards work relationship Situational Favourableness  The contingency part of contingency theory-specifics when a particular LPC orientation should contribute most to group effectiveness  Favourable leadership situation exists when leader has a igh degree of control and when the results of this control is very predictable  Factors that affect situational favourableness 2 1. Leader-member relations-when relationship b/t the leader and the group member is good, leader is in a favourable situation to exert influence; poor relationship should damage the leader’s influence lead to insubordination or sabotage 2. Task structure- when task at hand is highly structure, leader should be able to exert considerable influence on the group; clear goals, clear procedures to achieve these goals 3. Position power- position power is the formal authority granted to the leader by organization telling ppl what to do; the more position power that leader holds, more favourable leadership situation  Situation is most favourable for leadership when leader –member relations are good, the task is structure and the leader has strong position power Contingency Model  Leaders can get away w/ a task orientation when the situation is favourable-employees are ready to be influence  When the situation is unfavourable for leadership, task orientation is necessary to get things accomplished Evidence and Criticism  LPC not convincing  Does not correlate w. other personality measures  Some what ambiguous LPC trait House’s Path-Goal Theory  Situational theory of leadership-Path-Goal Theory  Path Goal Theory-concerned w/ the situation under which various leader behaviours are most effective The Theory  Most important activities of leaders are those that clarify the paths to various goals of interest to employees  Goals such as : promotions, accomplishment, work climate  Opportunity to achieve goals should promot job satisfaction, leader acceptance, high effort  The effective leader forms a connection b/t employee goals and organizational goals  To provide job satisfaction and leader acceptance leader behaviours must be perceived as immediately satisfying or leading to future satisfaction  Leader behaviours that employees see as unnecessary or unhelpful will be resented  Leaders must make rewards dependent on performance and ensure that employees have clear picture of how they can achieve these rewards o Leader might have to provide support through direction, guidance and coaching Leader Behaviour-concerned with 4 specific kinds of leader behaviour 1. Directive behaviour  Leaders schedule work, maintain performance standards and let employees know what is expected of them  Identical to initiating structure 2. Supportive behaviour  Leaders are friendly. Approachable and concerned w/ pleasant interpersonal relationships  Identical to consideration 3. Participative behaviour  Leader consult w/ employees about work related matters and consider their opinions 4. Achievement oriented behaviour  Leaders encourage employees to exert high effort and strive for high level of goal accomplishment  Express confidence that employees can reach these goals  Effectiveness of each set of behaviours depend on the situation that the leader encounters Situational Factors  Impact of leader behaviour on employee satisfaction, effort and acceptance of leader depends on the nature of the employees and the work environment  Two primary classes of situational factors o Employee characteristics o Environmental factors Ex:  Employees who are high need achieversachievement oriented leadership  Employees who preferred being told what to dodirective leadership style 3  Employee feel that they have low task abilitydirective leadership  Leaders have to tailor their behaviours to the needs, abilities and personalities of individual employees Effectiveness of leadership also depends on particular work environment  When tasks are clear and routinedirect and participative leadership annoying and redundant  Tasks are challenging and ambiguousdirective and participative leadership  Frustrating, dissatisfying jobssupportive behaviour Participative Leadership: Involving Employees in Decisions What is Participation?  Participative leadership-involving employees in making work-related decisions o INVOLVING  Min: participation involves obtaining employee opinions before making decisions  Max: allows employees to make their own decisions within agreed on limits  As are
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