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Chapter 9 & 12

MGHB02H3 Chapter Notes - Chapter 9 & 12: Transactional Leadership, Job Satisfaction, Transformational Leadership


Department
Management
Course Code
MGHB02H3
Professor
Brian Connelly
Chapter
9 & 12

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MGHB02 – Week 10: Leadership, Power, and Politics:
Chapter 9: Leadership (pp. 304-326):
What is Leadership?
-Leadership – the influence that particular individuals exert on the goal achievement of others in an org context
oMotivating people and gaining their commitment
-Effective leadership  influence in a way that achieves org goals by enhancing productivity, innovation,
satisfaction, and commitment of the workforce
oChange the way people think, feel, and behave; can have + effects on individuals, groups, units, orgs
-Strategic leadership – leadership that involves the ability to anticipate, envision, maintain flexibility, think
strategically, and work with others to initiate changes that will create a viable future for the org
oSustainable competitive advantage  compete and exploit growth opportunities
oOpen and honest; focus on the future
-Formal/assigned leadership roles  managers, executive, supervisor, and department head
oExpected to influence others and given specific authority to direct employees
oNo guarantee that leadership is present even with a title  ineffective leaders
-Informal leadership roles  do not have formal authority, must rely on being well liked or being perceived as
highly skilled to exert influence
Trait Theory of Leadership:
-Trait theory of leadership – leadership depends on the personal qualities or traits of the leader
-Traits – individual characteristics such as physical attributes, intellectual ability, and personality
oDemographics  gender, age, education
oTask competence  intelligence
oInterpersonal attributes  extraversion
- Some traits are associated with leadership  intelligence, energy and drive, self-confidence, dominance,
motivation to lead, emotional stability, honesty and integrity, need for achievement, sociability
- Certain traits are more closely linked to leadership emergence and effectiveness  BIG FIVE (extraversion &
conscientiousness)
- Relationship between intelligence and leadership  lower significance than previously thought of
- Relationship between traits and leadership effectiveness is stronger for affective and relational measures of
effectiveness than for performance-related measures
- Limits to trait approach:
oDifficult to determine whether traits make the leader or whether the opportunity for leadership
produces the traits
oFew clues about what dominant/intelligent/tall people do to influence others successfully
oFailure to take into account the situation in which leadership occurs
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oBias and discrimination when it comes to evaluating a leader’s effectiveness and decisions about
promoting people to leadership positions
The Behaviour of Leaders:
-Consideration – the extent to which a leader is approachable and shows personal concern and respect for
employees
-Considerate leader  friendly and democratic, expresses appreciation and support, protective of group welfare
-Initiating structure – the degree to which a leader concentrates on group goal attainment
-Structuring leader  clearly defines & organizes roles, stresses standard procedures, schedules the work to be
done, and assigns employees to particular tasks
- NOTE: consideration and initiating structures are not incompatible  could be high, low, or average on one or
both dimensions
- Consequences of consideration and structure:
oConsideration and initiating structure both contribute +vly to employees’ motivation, job satisfaction,
and leader effectiveness
oConsideration  strongly related to follower satisfaction (leader satisfaction and job satisfaction),
motivation, and leader effectiveness
oInitiating structure  strongly related to leader job performance and group performance
oRelative importance of consideration and initiating structure varies:
Employees are under high degree of pressure due to deadlines, unclear tasks, or external threat
 initiating structure increases satisfaction and performance
Task itself is intrinsically satisfying  need for high consideration and high structure is reduced
Goals and methods of performing the job are very clear and certain  consideration promotes
employee satisfaction; structure promote dissatisfaction
Employees lack knowledge as to how to perform a job, or the job itself has vague goals or
methods  consideration is less important; initiating structure takes on additional importance
- Leader reward and punishment behaviours:
oLeader reward behaviour – the leader’s use of compliments, tangible benefits, and deserved special
treatment
Contingent on performance  employees perform at a high level and experience job satisfaction
Employees have a clear image of what is expected of them and understand + outcomes will
occur if they achieve these outcomes
oLeader punishment behaviour – the leader’s use of reprimands or unfavourable task assignments and
the active withholding of rewards
Perceived as random and not contingent on employee behaviour  react –vly with great
dissatisfaction
oContingent leader reward/punishment behaviour is positively related to:
Employees’ perceptions  trust in supervisor
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Attitudes  job satisfaction and org commitment
Behaviour  effort, performance, org citizenship behaviour
oNon-contingent punishment behaviour is related to unfavourable outcomes
oRelationships are much stronger when rewards & punishment are made contingent on employee
behaviour  critical determinant of their effectiveness
oLead to more + perceptions of justice and lower role ambiguity
Situational Theories of Leadership:
-Situation  setting in which influence attempts occur
- Situational theories of leadership  effectiveness of a leadership is contingent on the setting
oCharacteristics of the employees, nature of the task they are performing, characteristics of the org
-Contingency theory – Fred Fiedler’s theory that states that the association between leadership orientation and
group effectiveness is contingent on how favourable the situation is for exerting influence
-Least preferred co-worker (LPC) – a current or past co-worker with whom a leader has had a difficult time
accomplishing a task
oRelationship oriented  leader who describes the LPC relatively favourably (high LPC score)  difficult to
work with but still has + qualities
oTask oriented  leader who describes the LPC unfavourably (low LPC score)  low task competence of
LPC to colour views of the personal qualities of the LPC
oLPC score reveals a personality trait that reflects the leader’s motivational structure
High LPC leaders  motivated to maintain interpersonal relations
Low LPC leaders  motivated to accomplish the task
oNot a measure of consideration or initiating structure
- Situational favourableness  specifies when a particular LPC orientation should contribute most to group
effectiveness
oMost favourable situation  good leader-member relations, high task structure, and formal authority in
position power
oLeast favourable  poor leader-member relations, task is unstructured, leader has weak position power
- Task orientation (low LPC) is most effective when leadership situation is very favourable (I, II, and III) or when it
is very unfavourable (VIII)
- Relationship orientation (high LPC) is most effective in conditions of medium favourability (IV, V, VI, VII)
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