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Chapter 12

BUS 272 Chapter Notes - Chapter 12: Circular Reasoning, Team Dynamics, Job Performance

Business Administration
Course Code
BUS 272
Graeme Coetzer

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Chapter 12 Leadership in Organizational Settings
Leadership influencing, motivating, enabling others to contribute towards the effectiveness
and success of the orgs of which they are members
o Apply various forms of influence to ensure that followers have motivation and role
clarity to achieve specified goals
o Also arrange work enviro so that employees can achieve corporate objectives more
Shared Leadership (leaderful org) the view that leadership is broadly distributed rather than
assigned to one person, such that ppl within the team and org lead each other
o Instead of one formally assigned leader, may have several leaders at the same time
needs higher collaboration among employees b/c shared leadership roles are affirmed
by team rather than formally assigned
o Employees perform leadership roles b/c co-workers support them for their initiative
o Lacks formal authority, so influence occurs by involving and receiving commitment from
Competency Perspective of leadership
o Most of Big 5 personality dimensions are associated w/ leadership, but strongest
predictors are high extroversion (comfortable w/ having influential role in social
settings), and conscientiousness (set higher personal goals for themselves, more
motivated, higher performance expectations)
o Positive self-evaluation (high self-esteem, self-efficacy, internal locus of control),
confident in leadership skills/ability to achieve objectives, complex/internally
consistent/clear self-concept
o Essential for authentic leadership (how well leaders know themselves and act in
accordance w/ self-concept)
o High need for achievement inner motivation that leaders possess and pursue goals
and encourage others to move forward with theirs; inspires inquisitiveness, action-
orientation, boldness to take org /team to uncharted waters
o Truthfulness and consistency of works/actions (related to honesty/ethics)
o High moral capacity to judge dilemmas based on sound values and to act accordingly
o Integrity and honesty are most important characteristics of effective leaders
Leadership motivation
o Motivated to lead others; strong need for socialized power (power as a means to
accomplish org objectives and similar good deeds) vs. personal power (desire for power
for personal gain or thrill from wielding power over others)
o Necessary in situations where there is competition effective leaders thrive in face of
Knowledge of the business
o Possession of tacit and explicit knowledge of business enviro in which they operate
Cognitive and practical intelligence

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o Above-avg cognitive ability to process large amounts of info superior ability to analyze
a variety of complex alternatives and opportunities
o Able to use knowledge of business to solve real-world problems by adapting to, shaping,
selecting appropriate enviros
Emotional Intelligence
o Able to perceive/express emotion, assimilate emotion in thought, understand/reason
w/ emotion, regulate emotion in themselves and others
Competency Perspective Limitations and Practical Implications
o Assumes that all effective leaders have same characteristics that are equally important
in all situations too complex to have universal list of traits, and some competencies
are more important than others
o Alternative combos of competencies may be equally successful
o Views leadership as smt w/in a person, but some emphasize that leadership is relational
o Some characteristics might only influence our perception that someone is a leader, not
whether the individual really makes a difference
o Competencies only indicate leadership potential, not leadership performance leaders
only effective after they’ve developed and mastered necessary leadership behaviours
Behavioural Aspect of Leadership
2 clusters of leadership behaviours
o Ppl-oriented behaviours mutual trust/respect for subordinates, genuine concern for
needs, desire to look out for welfare
Listen to employee suggestions, do personal favours for employees, support
interests, treat employees as equals
o Task-oriented style behaviours that define and structure work roles; assign employees
to specific tasks, clarify work duties/procedures, ensure company rules are followed,
push them to reach their performance capacity
Choosing task- vs. people-oriented leadership
o Each style has pros and cons, but research suggests that both styles are associated
positively w/ leadership effectiveness
o Problem w/ this perspective is that both categories are broad generalizations that mask
specific w/in each category each cluster is distinct and likely has different effects on
employee well-being and performance
o Assumes high lvls of both styles are best in all situations, when in reality, depends on
the situation
Contingency Perspective of Leadership
Based on the idea that most appropriate leadership style depends on the situation effective
leaders must be both insightful and flexible (able to adapt behaviours and styles to different
situations, but hard to do since leaders have preferred styles
Path-goal theory of leadership contingency theory of leadership based on the expectancy
theory of motivation that relates several leadership styles to specific employee and situational
o Effective leaders ensure that employees who perform their jobs well receive more
valued rewards than those who perform poorly
Provide info, support and other resources necessary to help employees
complete tasks
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