Leadership in

Organizational
Settings

McGraw-Hill/Irwin
McShane/Von Glinow OB 5e Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning objectives

 Define leadership and shared leadership

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Leadership Defined

Leadership is the ability

to influence, motivate,
and enable others to
contribute toward the
effectiveness of the
organizations of which
they are members.

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Shared Leadership
The view that leadership is broadly distributed
rather than assigned to one person
Employees are leaders when they champion
change in the company or team
Shared leadership calls for:
Formal leaders willing to delegate power
Collaborative culture – employees support each other
Employee ability to influence through persuasion

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Learning objectives
 Describe the perspectives of leadership
• Competency perspective
- Limitations of competency perspective
• Leader behaviour perspective
- Limitations of leader behaviour perspective
• Contingency perspective
- Path-goal theory of leadership
 Contingencies of path-goal
 Employee contingency
 Environmental contingency
• Transformational perspective
- Transactional and charismatic leadership
• Implicit leadership perspective

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Perspectives of Leadership

Competency
Perspective

Implicit
Leadership Behavioral
Leadership
Perspective Perspective
Perspectives

Transformational Contingency
Perspective Perspective

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Competency Perspective

 Competencies – personal characteristics that

lead to superior performance in a leadership
role (e.g. skills, knowledge, ability, values)
 Early research – very few “traits” predicted
effective leadership
 Emerging view – several competencies now
identified as key influences on leadership
potential and of effective leaders

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Eight Leadership Competencies
Personality • Extroversion, conscientiousness
(Chap 2) (and other traits)

more
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Eight Leadership Competencies

Personality • Extroversion, conscientiousness

(Chap 2) (and other traits)

• Positive self-evaluation
Self-concept
• High self-esteem and self-efficacy
(Chap 2)
• Internal locus of control -

Drive • Inner motivation to pursue goals

(Chap 5) • Inquisitiveness, action-oriented

• Truthfulness
Integrity
• Consistency in words and actions

more
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Eight Leadership Competencies (con’t)
Leadership
• High need for socialized power to
Motivation
achieve organizational goals
(Chap 5)

Knowledge of • Understands external environment

the Business • Aids intuitive decision making

Cognitive/
• Above average cognitive ability
practical
• Able to solve real-world problems
Intelligence

Emotional
• Perceiving, assimilating, understanding,
Intelligence
and regulating emotions
(Chap 4)

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Leader Behavior Perspective
 People-oriented behaviors
• Showing mutual trust and respect
• Concern for employee needs
• Looks out for employee well-being
• Compliment employees for their work
• Make the workplace more pleasant
• Listen to employees

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Leader Behavior Perspective
 Task-oriented behaviors
• Assign specific tasks
• Ensure employees follow rules
• Set “stretch goals” to achieve performance capacity
• Evaluate and provide feedback on work quality
• Establish well-defined best work procedures
• Plan future work activities

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Task-Oriented People-Oriented
Emphasis on work facilitation Emphasis on interaction facilitation
 

Focus on structure, roles and tasks Focus on relationships, well-being

and motivation
Produce desired results is a priority Foster positive relationships is a
priority
Emphasis on goal-setting and a Emphasis on team members and
clear plan to achieve goals communication within

Strict use of schedules and step-by- Communication facilitation, casual

step plans, and a interactions and frequent team
punishment/incentive system meetings

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Path-Goal Leadership Model
(Contingency Perspective)
Employee
Employee
Contingencies
Contingencies
Leader
Leader Leader
Leader
Behaviors
Behaviors Effectiveness
Effectiveness
•• Directive
Directive •• Employee
Employee
•• Supportive
Supportive motivation
motivation
•• Participative
Participative •• Employee
Employee
satisfaction
satisfaction
•• Achievement-
Achievement-
•• Acceptance
Acceptance ofof
oriented
oriented
leader
leader
Environmental
Environmental
Contingencies
Contingencies

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Path-Goal Theory of Leadership

 Choose one or more leadership styles to

influence employee expectation and
satisfaction
 Advocates servant leadership
 Leaders do not view leadership as position of
power but more as a role
 Leaders are coaches, stewards, facilitators
 Leaders ask the question, “How can I help
you”

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Path-Goal Leadership Styles
 Directive
• Provide psychological structure to jobs
• Task-oriented behaviors
• Clear role perception in employee performance (Chap 2)
• Judicious use of rewards and punishments
 Supportive
• Provide psychological support
• People-oriented behaviors
• Friendly and approachable
• Help employees to cope with stressful situations

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Path-Goal Leadership Styles

 Participative
• Encourage/facilitate employee involvement
• Consult and consider employee suggestions

 Achievement-oriented
• Encourage peak performance through goal setting and
positive self-fulfilling prophecy
• Sets challenging goals, expects employees to perform,
shows confidence in employees’ ability to perform
• Applies goal setting theory and positive expectations in
self-fulfilling prophecy

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Path-Goal Contingencies

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Transformational vs. Transactional
Leaders  Transformational leaders
• Leading -- changing the organization to
fit environment
• Leaders as change agents

• Steers company onto a better course

of action

 Transactional leaders
• Managing – achieving current
objectives more efficiently
- link job performance to rewards
- ensure employees have necessary
resources
- doing things right
• Relates to contingency leadership
theories (e.g. path-goal)

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Transformational v. Charismatic
(Heroic) Leaders
Is charismatic leadership
essential for transformational
leadership?
Emerging view:
charisma differs from transformational
leadership
Charisma is a personal trait that provides
referent power over others
Leader’s charisma might motivate others
to change, but sometimes just fulfills
leader’s personal goals
Charismatic leadership creates
dependence, not empowerment

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Transformational Leadership Elements

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12-27
Transformational Leadership Elements

1. Create a strategic vision

• Depiction of company’s attractive future
- motivates and bonds employees
• Leader champions the vision

2. Communicate the vision

• Frame message around a grand purpose
• Create a shared mental model of the future
• Use symbols, metaphors, symbols

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Transformational Leadership Elements
(con’t)

3. Model the vision

• Walk the talk
• Symbolize/demonstrate the vision through behavior
• Builds employee trust in the leader

4. Build commitment to the vision

• Increased through communicating and modeling
the vision
• Increased through employee involvement in
shaping the shared vision

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What is a Follower?
 A person being influenced by
a leader
 There are no leaders without
followers
 Many characteristics of good
leadership are found in highly
effective followers
 Effective leadership requires
effective followers
 Leadership is a relationship
jointly produced by leaders
and followers

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What are the Traits of Effective
Followers?
 Competence
 Confidence
 Motivation
 Responsibility
 Proactive inclination
 Independence
 Critical thinking
 Supportive of the leader
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Followership Types
Independent, Critical Dependent, Noncritical
Thinker Thinker

Effective Conformist
Active
Follower Follower

Pragmatic
Follower

Alienated Passive
Passive
Follower Follower

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Styles of Followership

Alienated followers:
 Is someone who feels cheated by his/her org
 Passive behavior but independent,
critical thinkers
 Capable but unwilling to take part in
problem solving and decision making

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Styles of Followership (cont.)
Conformist followers:
 Not active in critical, independent
thinking but are active participants
 “Yes” people
 Order followers
 Avoid conflict (would do anything)

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Styles of Followership (cont.)
Passive followers:
 Not active in either
critical,
independent thinking or
participation
 Leader is expected to do all the
thinking
 Require constant supervision
 Never do more than jobs call for

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Styles of Followership (cont.)
Effective followers:
 Are critical, independent thinkers
and active in the group
 Committed, innovative, creative,
hard working
 Take risks and do not avoid conflict
 Best interest of the organization

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Styles of Followership (cont.)
Pragmatic followers:
 A mixture of the other four styles
 Change as the situation changes
 Know how to work the system
 Often seen as political (max self –interest)

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 Leadership in
Organizational
Settings

McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.12-38