Leadership and Theories

Changing Views of Leadership in Business

1.       Scientific Management/Theory X: people are lazy, stupid, and dislike work. Workers are extensions of the machines that they are operating.

2.       Human Relations Approach/Theory Y: regards employee needs as a legitimate corporate responsibility.  People are industrious and seek challenges.

 

Trait Theories of Leadership

1.       Original explanations of leadership

2.       Most often believed by royalty, elite classes, and older siblings

3.       Years of research – inconclusive results

·         Bird found four general traits (intelligence, initiative, sense of humor, extraversion)

·         But, these traits don’t ensure a good leader

Two Frequently Studied Traits

1.       Charisma: inspire followers to be passionately devoted to them

2.       Extraordinary vision

3.       Persuasive speakers

4.       Practical leadership skills (alleviates stress of followers)

5.       Machiavellianism

6.       Believe that people are weak, gullible, and untrustworthy

7.       People are there to be used and manipulated

8.       No emotional, moral or ideological attachments

9.       Sane

 

Social Determinism

1.       The “great” leader only plays a unique and decisive role when the historical situation permits major alternative paths of development

2.       In other words, leaders simply play out roles designed for them by broad social forces

Modern Theories of Leadership

Focus on interaction of

·         Traits and behaviors of leaders

·         Characteristics of their followers

·         Nature of the situation

Contingency Theory

1.       Created by Fred Fiedler

2.       Leader effectiveness determined by interaction of leader characteristics and aspects of the situation

3.       Person-oriented Leader: more effective in moderately favorable situations

4.       Task-oriented Leader: more effective in extremely favorable or unfavorable situations

Cognitive Resource Theory

1.       Fiedler’s expansion of Contingency Theory

2.       Interaction of leader’s cognitive abilities (e.g., intelligence, job-related knowledge), job performance, and stress

3.       Must keep stress at a minimum for leader to be successful

Path Goal Theory

Focuses on kinds of behaviors leaders should use to allow their subordinates to achieve personal and organizational goals.

1.       Directive Leadership

2.       Supportive Leadership

3.       Participative Leadership: workers have input

4.       Achievement Oriented: set challenging goals and emphasize high level of performance

5.       Requires a flexible leader

Normative Decision Theory

1.       Concerned with extent to which leaders allow subordinates to participate in decisions

2.       Ranges from autocratic to complete participation

3.       Factors to consider include

4.       Importance of decision

5.       Degree to which it is accepted by subordinates

6.       Time required to make the decision

 

Leader Member Exchange

•Deals with the way the leader-follower relationship affects the leadership process.

•Every follower is different

•In-group vs. Out-group subordinates

•Supervision/formal authority vs. leadership/persuasion

•Get leader to like you treats you better         

1.       You work harder

Leadership Styles

1.       Authoritarian vs. Democratic

2.       60% of workers prefer democratic styles

3.       However, job performance only increased in 22% of studies (56% showed no difference)

4.       Transactional: behavior depends on what followers think of them.  Bribery.

5.       Transformational: Challenge and inspire workers       

·         High Energy, willing to risk

·         Individualized consideration

·         Intellectual stimulation

The Role of Power

Types of Power

1.       Reward: pay raises, promotions

2.       Coercive: punishment (downsize, demote)

3.       Legitimate: hierarchy of control (formal structure)

4.       Referent: degree to which employees identify with leader and leader’s goals

5.       Expert: does leader have necessary skills?  If yes, more supportive subordinates

Examples of Influence Tactics

1.       Rational Persuasion

2.       Inspirational Appeals

3.       Consultation: seeks target participation

4.       Ingratiation

5.       Personal Appeals: loyalty and friendship

6.       Exchange

7.       Coalition Tactics

8.       Legitimating Tactics: based upon hierarchical authority or organizational policy

9.       Pressure: threats and persistent reminders

Effects of Power

1.       Legitimate, referent, and expert: correlate with job satisfaction, satisfaction with superior’s technical skills, satisfaction with superior’s human relations skills, organizational commitment

2.       Reward: correlates with all but organizational commitment

Need for Power?

1.       High level executives and mid-level managers often have a high need for power

2.       Effective managers have a higher need for power than less effective managers

3.       However, power is not for personal gain

Role of Leader Expectations

1.       Pygmalion Effect: positive self-fulfilling prophecy

2.       Golem Effect: negative self-fulfilling prophecy

 

Women in Management

1.       Female managers have risen from 24% to 40%.  But, only 5% of women employed outside the home hold senior management positions

2.       74 cents to the $

3.       Glass ceiling

4.       Leadership and gender stereotypes: women use more transformational leadership

5.       Attributions for success