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Chapter 9

BUS 2090 Chapter Notes - Chapter 9: Unbridled, Transformational Leadership, Transactional Leadership

Course Code
BUS 2090
Hassan Wafai

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Chapter 9 Individuals, Groups & Organizations
What is Leadership?
Leadership: The influence that particular people exert on the goal achievement of others in an organizational
Effective leadership has influence in way that achieves goals by enhancing productivity, innovation,
satisfaction and commitment
Strategic Leadership: Leadership that involves the ability to anticipate, envision, maintain flexibility, think
strategically & work w/ others to initiate changes that will create a viable future for the organization
Strategic leaders are open & honest in their interactions w/ stakeholders & focus on the future
Are Leaders Born?...
Research on Leadership Traits
Throughout history social observers have been fascinated with what traits leaders possess
Traits: Individual characteristics such as physical attributes, intellectual ability & personality
Research has shown that many traits are linked to whether people become leaders or how effective of
leaders they are
Limitations of the Trait Approach
Even though traits appear to be related to leadership in many cases its hard to determine whether traits
make the leader or whether the opportunity for leadership produces the traits
In the trait approach there is a failure to take situation into consideration
The Behaviour of Leaders
The trait approach is more concerned about what leaders bring to a group setting while the behaviour
approach focuses on what leaders do in group setting
What are the behaviours leaders engage in & how do these behaviour influence employee performance?
2 Basic types of behaviour…
1. Consideration: The extent to which a leader is approachable & shows personal concern and respect for
2. Initiation Structure: The degree to which a leader concentrates on group goal attainment
Will clearly define and organize his/her role & the role of followers, stresses standard procedures,
schedules work to be done and assigns employees to tasks
The Consequences of consideration & structure
In general, research shows that consideration & initiating structure both contribute positively to employees
motivation, of satisfaction and leader effectiveness
Consideration tends to be more strongly related to follower satisfaction, motivation & leader effectiveness
Initiating structure is slightly more strongly related to leader job & group performance
The importance of these two categories varies across situations
Leader Reward & Punishment Behaviours
Leader reward behaviour: provides employees w/ compliments, benefits and deserved special treatment
When rewards are contingent on performance, employees should perform at a high level & experience job
Leader Punishment Behaviour: Involves use of reprimands & unfavorable task assignment and active
withholding of rewards, raises & promos
Punishment is really hard to use
Situational Theories of Leadership
Refers to the setting in which influence attempts occur
Includes the characteristics of the employees, nature of the task, characteristics of the organization
Fielder’s Contingency Theory & Cognitive Resource Theory
Contingency Theory
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States that the association between leadership orientation & group effectiveness is contingent on how
favorable the situation is for the exerting influence
Says some situations are more favorable than others
Leadership orientation is measured by having leaders describe their least preferred co-worker (may be
current or past)
The leader who describes the LPC relatively favorably (high LPC score) can be considered
relationship oriented hard to work w/ but can still find positive qualities
The leader who describes the LC unfavorably, can be considered task oriented
Situational Favorableness
The contingency part of contingency theory that specifies when a particular LPC orientation should
contribute most to group effectiveness
Factors that affect situational favorableness…
Leader-member Relations: Poor relationship between leader & group damage leaders influence
Task Structure: Clear goal, clear procedures & straightforward performance measures
Position Power: Formal authority granted to the leader by the org to tell others what to do
Cognitive Resource Theory
A leadership theory that focuses on the conditions in which a leader’s cognitive resources contribute to
effective leadership
The importance of intelligence for leadership effectiveness depends on the defectiveness of the leader,
group support for the leader, & the stressfulness of the situation
House’s Path-Goal Theory
Robert House theories which is concerned w. the situation under which various leader behaviour are most
Says the most important activities of leaders are those that clarify the paths to various goals of interest to
employees (promotion, sense of accomplishment, [pleasant work climate etc.)
The effective leader forms a connect between the employee goals & organizational goals
Leader Behaviour
Directive behaviour: Directive leaders schedule work, maintain performance standards & let employees know
what’s expected of them
Supportive Behaviour: These leaders are friendly, approachable and concerned w/ pleasant interpersonal
Participative Behaviour: Consult w/ employees about work related matters & consider their opinions
Achievement-oriented Behaviour: Encourage employees to exert high effort & strive for high level of goal
* The effectiveness of each set of behaviours depends on the situation the leader encounters
Situational Factors
Includes environmental factors & employee characteristics
Participative Leadership: Involving Employees in Decisions
What is Participation?
Participative Leadership: Involving employees in making work-related decisions
Can involve individual employee or whole group
Potential Advantages
Motivation: Participation can increase motivation of employees & permit them to contribute to the
establishment of work goals and to decide how to accomplish these goals
Quality: “two heads are better than one”
Acceptance: Can improve employees acceptance of decisions
Potential Disadvantages
Time & Energy: When a quick decision is needed, participation isn’t appropriate
Loss of Power
Lack of Receptivity or Knowledge
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