Will you be able to complete the full course?

Leadership 8 Learning Objectives After reading this chapter and studying the materials, you should be able to:• Understand the basics of leadership along with the tr aits and char acteristics that ha ve been associated with eff ective leadership.

• Use the elements of the beha vioral theories t o impr ove leadership acti vities.

• Employ concepts fr om the situational and contingency theories of leader eff ectiveness.

• Relate lat e 20th century theories of leadership t o the w orkplace.

• Apply cont emporary leadership theories t o emplo yment settings. Blend Images/Blend Images/SuperStock 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Leadership and Early Theories Section 8.1 8.1 The Nature of Leadership and Early Theories Making a distinction betw een the t erms “leadership ” and “management” has been an ongo - ing f ocus of or ganizational beha vior authors (see Simonet & T ett, 2013 f or a full discussion). John K otter (1 990) ar gues that management f ocuses on coping with comple xity using the basic managerial functions of planning, or ganizing, and contr ol. R obert House and R. J. A ditya (1997) link the concept of management with the use of f ormal authority that arises fr om a person ’s or ganizational r ank. In contr ast, leadership concentr ates on coping with change and pr oviding guidance. Leaders establish dir ection b y communicating a vision and inspiring f ollowers. Not all man - agers ar e eff ective leaders, and not all str ong lea ders ar e managers. The ideal, of cour se, w ould be t o emplo y managers who are also quality leaders w henever possible.

The ab ility t o lead has been observ ed and r eported on f or man y centuries. Man y ancient writings t ell tales of leaders w ho serv ed in battle, com - manded nations, or taug ht r eligious ideas. In a gener al sense, the primary qualities asso ciated with leadership ar e vision, enthusiasm, trust , cour age, passion, coaching, de veloping others, int ensity, lo ve, and e ven serving as a par ent figur e. In an or ganizational cont ext, leadership in volves influencing the beha viors of indi viduals and gr oups to work toward predetermined goals.

Effective leaders influence beha viors in positi ve w ays. Ex amples of eff ective leaders include the har d-driving but r espected Jack W elch during his t enure at Gener al Electric; the po werful moti vator Shery l Sandber g fr om F acebook; the dri ven, int ellectual St eve Jobs of Apple Inc. and Bil l Gat es of Micr osoft; the fun-lo ving and t enacious Her b K elleher, f ounder and CEO of South west Air lines; the charismatic communicat or Andr ea Jung, CEO of A von Pr oducts, Inc.; and the uncon ventional Indr a Noo yi, CEO of P epsiCo. As these e xamples indicat e, eff ective leadership takes many forms.

Consequently, it is not surprising that the stud y of leadership includes a v ariety of perspec- ti ves. This chapt er e xamines se veral cat egories of leadership theories including tr ait, beha v- ioral, situational, and contingency , as w ell as an eclectic set of cont emporary theories. Each adds unique elements t o our understanding of w hat leaders do and ho w eff ective leaders oper ate. Monkeybusinessimages/iStock/Thinkstock While the roles of managers and leaders differ, it is ideal for managers to be quality leaders.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Leadership and Early Theories Section 8.1 OB in Action: Solemates’ Becca Brown One of the biggest jumps a per son can mak e is fr om a w ell-paid stable job with a major cor- por ation t o the launch of a br and-new business. Becca Br own t ook that leap, and did so with gr eat success.

Brown earned a bachelor’s degr ee fr om Harv ard Uni versity and mo ved int o the corpor ate w orld b y taking a job as a financial anal yst f or Goldman Sachs. T wo pr omotions lat er she had mo ved fr om an associat e’s position in Pri vate W ealth Manage ment t o chief of staff in the com - pany’s London operation. Clearly, she had already exhibited quality leadership skills.

Then, a long-time memory emer ged. She r ecalled a pr om phot o in w hich she st ood on some less-than-stur dy gr ass and e ventually her beautiful hig h heel shoes w ere ruined. Aft er shar- ing the st ory with her friend fr om Goldman Sachs, Monica F erguson, the tw o decided t o find a solution to the problem of poorly designed high heel spikes. The r esulting pr oduct, Solemat es, ar e small plastic caps that attach t o hig h heels and pr e- vent them fr om sinking int o gr ass or getting stuck in cr acks. The pr oduct has been placed in mor e than 3,000 Nor dstrom, DSW , and Da vid’s Bridal st ores ar ound the w orld as w ell as on Amazon.com and Zappos.com. Se veral hundr ed thousand pairs ha ve been sold t o people ar ound the w orld, including Opr ah, R obin W right-Penn, Viola Da vis, Natalie Mor ales, and Car- rie Underwood.

Listening, honesty , passion, bu ilding int erpersonal r elationships, and commitment t o emplo y- ees ar e some of Br own’s major leadership attribut es. She said, “ Ask f or help, guidance, and ad vice. T ry t o g ather as much f eedback fr om others ar ound y ou as y ou can. Seek out 360-degr ee ad vice—ask those mor e senior t o y ou, y our peers, and those mor e junior . Y ou can onl y benefit fr om hearing the different perspectives” (Smith, 2016).

Honesty and passion ar e at the f orefront f or Br own w hen selecting a new emplo yee. She said, “I w ant t o kno w w hat a candidat e enjo ys doing because not onl y does it gi ve me insig ht int o w ho the person is and their personality , but it sho ws me w here I think the y can thri ve,” Br own t ells Bu siness Insider . “In gener al, w e all e xcel w hen w e enjo y w hat w e’re doing. If w e can harness w hat a candidate genuinely enjoys doing in their job, it becomes a win-win situation ” (Smith, 2015).

Her leadership sty le and app roach ha ve been clear ly successful. The futur e of Solemat es r emains bright.

Reflection and Application Questions 1. How is the concept of “leadership” connected to “entrepreneurship?” 2. Do you agree that honesty and passion are two key ingredients in selecting employees?

3. Evaluate Becca Brown’s leadership style based on her comments in this story. The Original Great Man Theory Among the fir st ideas about the natur e of leadership w ere belief s that ph ysical and personal - ity char acteristics diff erentiate eff ective leaders fr om f ollowers and fr om unsuccessful lead - ers.

In the ear ly 1900s, the assumption w as that certain people ar e simpl y born t o lead. This supposition suggests that leadership cannot be taught; it consists of inherent abilities. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Leadership and Early Theories Section 8.1 Further, the ab ility t o lead w as pr esumed t o be a uni versally applicable skill. Thus, a leader w ho succeeds in one or ganization w ould lik ely be equall y eff ective in an y other , w hich in turn suggests that all eff ective leaders shar e common tr aits. These ideas f ormed the gr eat man appr oach t o leadership, w hich w as studied f or man y y ears prior t o W orld W ar II. T able 8.1 summarizes man y of the it ems that w ere in vestigated, all in sear ch of common tr aits and char acteristics among great leaders.

Table 8.1: Potential traits and characteristics of effective leaders Physical characteristicsPersonal traitsPersonality traits Social traits Height Verbal skillsAmbition Empathy Strength WisdomConfidenceTact Physical attractiveness Judgment InitiativePatience Stamina IntellectPersistenceTrust Vitality Capacity for work Imagination Status Clearly, man y of the it ems in the table ar e admir able tr aits and personal str engths. Unf ortu- nately, a gr eat deal of r esearch indicat es that the y ar e not uni versally f ound in successful lead - ers (Ge ier, 196 7), and in f act, count er-examples ar e r eadily a vailable. An eff ective leader mig ht be shor t (Napoleon), ph ysically w eak, (F ranklin D . R oosevelt), unattr active, inarticulat e, less int elligent, full of self-doubt (A braham Lincoln), and impatient (McDonald’s R ay Kr oc). As a r esult, interest in the great man approach began to wane (Kirkpatrick & Locke, 1991).

Trait Theories As a modificat ion of the gr eat man appr oach, a new er tr ait-based theory ar gued that althoug h certain char acter tr aits ma y be innat e, leaders can be de veloped thr ough e xperience and learning, inclu ding the tr aits identified in the My ers-Briggs appr oach, the Big Fi ve P ersonality Char acteristics approach, and emotional and/or political intelligence.

In man y business or ganizations, companies identify elements of personality with a widel y- used instrument , the My ers-Briggs T ype Indicat or (MB TI), w hich measur es intr oversion/ extroversion, sensing/intuiti ve, thinking/f eeling, and judging/per ceiving personality char ac- teristics in indi viduals (Quenk, 2000). Althoug h e vidence of the v alidity of the actual instru - ment has been mix ed, som e or ganizational leaders ha ve concluded that it does pr ovide a path way t o gr eater self-a wareness, w hich mig ht r esult in mor e eff ective leadership (Gar dner & Martinko, 1996).

A closel y r elated appr oach, kno wn as the Fi ve-Factor Model of P ersonality, or the Big Fi ve P er- sonality Char acteristics appr oach, achie ved some positi ve r esearch r esults r egarding leader - ship, as w ell as eff ective gener al job perf ormance (Mount , Barrick, & Str auss, 1994; Schmidt & Hunt er, 1998; McCr ae, 1992). The model suggests that fi ve basic dimensions under lie per- sonality , including man y of the tr aits not ed in T able 8.1 (McCr ae & Costa, 1989). The f ollowing ar e the Big Five factors: \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Leadership and Early Theories Section 8.1 1. Extroversion—One’s comfort level with relationships. People who are extroverts t end to be outgoing, assertive, and social. Introverts tend to be reserved, timid, and less inclined to leap into action.

2. Agreeableness—One’s tendency to defer to others. Highly agreeable people are cooper ative and trusting. People who are less agreeable tend to be antagonistic, cold, and untrusting.

3. Conscientiousness—Reliability in dealing with others. A person who is highly con- scientious is meticulous, responsible, organized, and dependable. People who are less conscientious are easily distracted, disorganized, and often unreliable.

4. Neuroticism vs. emotional stability—A person’s tendency to become or not become upset or emotional and his or her ability to deal with stress in general. People who ar e emotionally stable tend to be calm, self-confident, and secure. People who are less emotionally stable tend to be nervous, anxious, and insecure.

5. Openness to experience—A person’s range of interests and curiosity regarding new e xperiences and adventures. Open people are creative and inquisitive and ask numer- ous questions. People who are less open tend to be conventional, a bit rigid, and pr efer the status quo.

Of the fi ve, e xtroversion has been the most pr edictive of becoming a leader; ho wever, it does not necessaril y lead t o leader eff ectiveness, or the ability t o be a quality leader ( Judge, Bono, Ilies, & Ger hardt, 2002). Some e vidence has emer ged noting that conscientiousness and openness t o e xperience ar e corr elated with leader eff ectiveness ( Judge et al., 2002), w hich suggests a combination of the fi ve tr aits mig ht incr ease the lik elihood a person will be an eff ective leader.

The gr eat man and Big Fi ve assessments of leader tr aits and char acteristics suggest that certain person ality tr aits r esult in eff ective leadership. This suggestion f ails t o separ ate tw o important concepts. The first is that certain personality tr aits can pr edict the chances that an indi vidual will be pr omoted t o a leadership r ole. F or e xample, an e xtroverted indi vidual w ould be more readily noticed in a social setting and become a leader as a result. The second concept is that becoming a leader ( getting the job or being pr omoted) does not guar antee subsequent eff ectiveness. F uture r esearch and conceptual de velopment ma y r esult in studies designed t o identify an y personality f actors that pr edict eff ectiveness r ather than ability to obtain the role.

One final char acteristic that has dr awn att ention is int elligence. Ther e has been a longstand- ing int erest in, and debat e about , the r elationship betw een int elligence and the ability t o lead. One f actor, emotional int elligence, or the ability t o mana ge oneself and one’s r elationships in matur e and constructi ve w ays, appears t o pr edict leader success (Xa vier, 2005). Emotional int elligence, as w as describe d in Chapt er 3, includes the ability t o adapt t o changing cir cum- stances, r emain empathetic t o others, and r emain calm in the f ace of pr essure or difficult cir cumstances.

Political intelligence, w hich indicat es the ability t o use po wer and intimidation t o achie ve v arious r esults, also appears t o be an asset in cir cumstances in w hich change is r equired and subor dinates ar e r esistant t o those changes (Kr amer, 2006). Still, one stud y r evealed onl y a modest r elationship betw een int elligence and eff ectiveness; the r esearchers concluded that personality f actors, r ather than int elligence, r emained bett er pr edictors of leadership eff ec- tiveness (Judge, Colbert, & Ilies, 2004).

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Behavioral Theories and Leader Orientation Section 8.2 Comprehension Exercise 1. Which activity is most directly related to leadership?

a. preparing a plan b. designing organizational structure c. providing a vision for everyone in a company d. using formal authority to direct employee activities 2. A leader who demonstrates some level of deference to others and tends to be more cooper ative and trusting exhibits which of the Big Five Personality Characteristics?

a. extroversion b. agreeableness c. conscientiousness d. openness to experience Answers: 1) c 2) b 8.2 Behavioral Theories and Leader Orientation The onset of W orld W ar II r esulted in a series of new leadership r esearch initiati ves in the Unit ed Stat es, primaril y due t o w hat the Unit ed Stat es go vernment per ceived as a need t o de velop eff ective leaders, specificall y f or the military . These appr oaches ha ve been char acter- ized as being de veloped dur ing the be havioral era of lea dership stud y (Y ukl, 1981). R esearch- ers soug ht t o identify specif ic beha viors that ar e associ ated with successful leadership along with an understanding of the leader’s basic orientation t oward people or pr oduction, w hich w ould then mak e it possible t o tr ain emplo yees t o become mor e eff ective leaders. This con - ceptualization diminishes the r ole of personality f actors in selection pr ocesses w hile enhanc - ing the role of leadership training. Four behavioral theories of leadership are as follows:

• the University of Michigan Leadership Model • the Ohio State Study • the Leadership Grid • the Scandinavian Development-Oriented Approach The University of Michigan Leadership Model In the lat e 1940s, r esearchers at the Uni versity of Michig an de veloped w hat came t o be kno wn as the Uni versity of Michig an Leadership Model. A t eam beg an stud ying the eff ects of leader beha vior on job perf ormance b y int erviewing a number of managers and subor dinates. As a r esult of their r esearch, the in vestigators identified tw o leadership sty les: job-cent ered and emplo yee-centered (Likert, 1961).

Job-centered, or pr oduction-oriented, beha viors and or ientation occur w hen manager s f ocus att ention on the job and r elated w ork beha viors. Pr oduction-oriented leader s concen - trate on t echnical aspects of the job, including finding bett er methods of oper ation, with the \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Behavioral Theories and Leader Orientation Section 8.2 goal of incr easing output thr ough indi viduals and gr oups. The pr incipal concerns of pr o- duction-oriented leaders include r eaching pr oduction goals, k eeping costs in line, and f ol- lowing schedules.

Employee-centered beha viors and orientation tak e place w hen manag- ers concentr ate on emplo yee satisf ac- tion and mak ing w ork gr oups mor e cohesi ve. Emplo yee-oriented manag- ers emphasize personal r elationships with w orkers, tak e a pers onal int er- est in those indi viduals, and accept personality diff erences. B y f ocusing on emplo yee needs, managers hope t o build eff ective w ork gr oups that will achie ve at higher levels.

Likert and his colleagues at Michig an ar gued that emplo yee-oriented lead - ers w ould be mor e eff ective in t erms of pr oducing hig her gr oup satisf action and hig her indi vidual job satisf action. The y ar gued that pr oduction-oriented leaders w ould suppr ess those f actors. In es sence, the ar gument w as that emplo yee-centered leadership is a bett er style.

The Ohio State Study Beginning in the 1940s, another stud y that e xamined leadership beha vior t ook place at The Ohio Stat e Uni versity (St ogdill & Coons, 1957). The r esearchers at Ohio Stat e conduct ed sur- v eys of leadership beha viors in various or ganizations and subsequently identified tw o major dimensions of leader behavior: initiating structure and consideration (Shartle, 2006).

Initiating structure r efers t o an aspect of leadership beha vior that or ganizes and defines w hat gr oup members should be doing. It in volves the eff orts the leader mak es t o get things done thr ough tactics such as or ganizing w ork and setting goals f or emplo yees. Beha viors that e xhibit initiating structur e ar e similar t o the job-cent ered beha viors identified in the Uni ver- sity of Michigan study.

Consideration is leadership beha vior that e xpresses concern f or emplo yees b y establishing a w arm, supporti ve, friendl y climat e. Leaders e xhibit consider ation thr ough concern f or w orker comf ort, w ell-being, and satisf action. Consider ation r esembles the emplo yee-centered beha v- iors ide ntified in the Uni versity of Michig an stud y, in w hich leaders ar e sensiti ve t o emplo yee ideas and promote feelings of trust.

The r esearchers at Ohio Stat e concluded that eff ective leaders demonstr ated hig her le vels of both initiat ing structur e and consider ation. Eff ective leaders t ended t o ha ve positi ve, sup - portive, emplo yee-centered r elationships and use gr oup r ather than indi vidual methods of supervision that encour aged setting hig h perf ormance goals. A t the same time, the y could f ocus on the accomplishment of tasks. Monkeybusinessimages/iStock/Thinkstock The University of Michigan Leadership model posits that employee-centered management is ultimately more effective.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Behavioral Theories and Leader Orientation Section 8.2 Research int o the assertions made b y the Ohio Stat e stud y’s anal ysts has yielded mix ed r esults. F or e xample, a leader w ho e xhibits consider ation ma y r eceive lo wer perf ormance r atings b y the indi vidual’s supervisor , per haps due t o the conclusion that the consider ate leader is not asserti ve or la cks confidence. In contr ast, initiating structur e has been connect ed t o hig her r ates of grie vances filed b y emplo yees and other indicat ors of dissatisf action, such as absen - teeism and turno ver (Y ukl, 1981). The lik ely e xplanation w ould be that leaders w ho e xhibit such an appr oach w ould be per ceived as being mor e authoritarian and f ar less att entive t o emplo yee needs and concerns.

The Leadership Grid As not ed, the Ohio Stat e stud y’s conclusions included the assertion that the most eff ective leaders e xhibit both initiating structur e and consider ation. Blak e and Mout on (1985) r elied on that conclusion w hen building the leadership grid. Their appr oach w as t o impr ove leader skills b y enhancing an y deficiencies in a leader’s sty le using v arious tactics t o impr ove on such w eaknesses.

The lea dership grid consists of tw o ax es, or dimension s: concern f or people and concern f or pr oduction (s ee Figur e 8.1) . When using the Blak e and Mout on appr oach, leaders ar e r ated with scores from 1 to 9 on each dimension. Figure 8.1: The leadership grid Effective leaders have high scores for both concern for people and concern for production. Source: Adapted from Blake, R., & Mouton, J. S. (1985). The Managerial Grid III: The key to leadership excellence. Houston, TX:

Gulf Publishing Company.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Behavioral Theories and Leader Orientation Section 8.2 The point at w hich an indi vidual scor es on each dimension indicat es his or her particular management sty le: impo verished (poor leader), authority -compliance (onl y pr oduction ori- ent ed), country club (onl y people orient ed), middle-o f-the-road (compr omise), and t eam (eff ective leader). Each axis r anges fr om a scor e of 1 at the bott om t o 9 at the tw o e xtremes. Thus, a scor e of 1,1 indicat es the leader w ho does not appear t o demonstr ate either a people- orient ed or pr oduction-oriented sty le. The 9, 9 eff ective leader r ates hig h on both dimensions.

Ther efore, at the lo w end of both dimensions (1,1) impo verished management suggests a poor leader , one w ho e xerts the minimum amount of ef fort t o get w ork done and k eep his or her job. Such an individual may be best suited to a role other than leadership.

A leader with hig h concern f or pr oduction and little concern f or people e xhibits an authority - compliance sty le. Consequentl y, the person w ould be tr ained t o de velop v arious people skills. One of the earliest approaches was to employ sensitivity training for such individuals.

The country club management sty le emphasizes being thoug htful and att entive t o emplo yees b y cr eating a friendl y en vironment, sometimes at the e xpense of desir ed pr oductivity. These leaders benefit fr om an emphasis on understanding the importance of pr oduction, thr ough methods such as goal setting.

Middle-of-the-road leaders ensur e adequat e perf ormance b y compr omising on both pr oduc- tion goals and issues of mor ale. The middle-of-the-r oad leader lack s asserti veness and deci- si veness, w hich w ould mean that tr aining sessions shou ld be de voted t o impr oving those tw o char acteristics.

Team management or leadership r eflects a str ong desir e t o enjo y a positi ve w ork en viron- ment coupled with the dri ve t o achie ve pr oductivity goals. Such an indi vidual pr ovides a r ole model for other leaders and managers as well as those who aspire to such positions.

The primary criticism of the leadership grid r esembles that r aised r egarding the Ohio Stat e studies.

Little e vidence e xists t o support the concept that (9, 9) t eam management sty le will al ways be the most eff ective. The fr amework does pr ovide a method of anal ysis of v arious leaders by management trainers and has been used frequently in that manner.

The Scandinavian Development-Oriented Approach Researchers in S weden and Finland in the mid-1960s r efined the people-orient ed/ pr oduction- oriented model t o incorpo rate a thir d dimension: de velopment-oriented leader beha vior (Ekv all & Arv onen, 1991; Li ndell & R osenqvist, 1992b). The under lying pr emise w as that the w orld of commer ce had changed sufficientl y t o demand beha viors that in volve starting new acti vities plus finding and ad vocating f or impr oved methods of doing things. The r esearch- ers suspect ed that such acti vities w ere of lesser necessi ty during the times in w hich the Ohio Stat e and Michigan studies were being conducted.

Initial in vestigations suggest that the thir d dimension has v alue in e xplaining leader beha vior. The appr oach suggests de velopment-oriented leaders ha ve mor e satisfied emplo yees. The emplo yees may also view them as being more competent (Lindell & Rosenqvist, 1992a).

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Situational and Contingency Theories Section 8.3 The beha vioral theories of leadership str ess the importance of leader actions and acti vities r ather than tr aits and char acteristics. These theories ther efore support the idea that gr eat leaders ar e not necessaril y born with inher ent leadership qualities; r ather, emplo yees can be taug ht and trained to become effective leaders.

In summary , consider able debat e t ook place r egarding the eff ectiveness of either leader sty le (people-orient ed or pr oduction-oriented) alone. Some suggest ed that a hig hly pr oduction- oriented, authoritarian leader such as St eve Jobs at Apple Inc. cr eated a hig hly str essful en vi- ronment that t ended t o bu rn out e ven the most diligent emplo yees. Others ar gued that a complet e human-orient ed people appr oach quickl y becomes a cir cumstance in w hich the leader is cons idered t o be “soft” and easil y intimidat ed. Consequentl y, it w as not surprising w hen or ganizational beha vior r esearchers and theorie s beg an t o look f or appr oaches that w ould incorpo rate new and diff erent ideas, especiall y r egarding times in w hich one sty le or the other would be the most appropriate or effective. Comprehension Exercise 1. Which style of leadership did Likert and his colleagues at the University of Michigan stat e would be the most effective in the workplace?

a. job centered b. employee centered c. developmental d. laissez-faire 2. Development-oriented behaviors may improve leader success because a. people-centered leadership allows for too many errors.

b. job-centered leadership fails to account for developing people.

c. generating and implementing novel ideas and approaches becomes more important.

d. the leadership grid cannot develop middle-of-the-road managers. Answers: 1) b 2) c 8.3 Situational and Contingency Theories In the lat e 1950s, the concept emer ged that no one uni versal sty le of leadership is al ways most eff ective. Inst ead, som e theorists ar gued that leader eff ectiveness lar gely r esults fr om the leader adapting t o or mat ching the char acteristics of a particular situation. As a r esult, theories in this area are known as situational and contingency approaches to leadership. Original Situational Theories Robert T annenbaum and W arren Schmidt (1973; first published in 1958) suggest ed a diff er- ent, thir d k ey leadership v ariable in addition t o task - and r elationship orientations: eff ective- ness.

Their view of leadership e xpresses leader sty le in t erms of the deleg ation of authority . A t the one e xtreme of a situational continuum, an authoritarian leader r etains t otal contr ol. A t the other e xtreme is the leader w ho pushes f or emplo yee participation and aut onomy. In betw een, the continuum indicat es the amount of deleg ation of authority that w ould be the \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Situational and Contingency Theories Section 8.3 most eff ective, depending on the natur e of the situation as it mo ves fr om mor e f avorable t oward authoritarian sty le t o mor e f avorable t oward aut onomy. In a separ ate but similar appr oach t o that of T annenbaum and Schmidt , William R eddin (1970) identified the tw o main dimensions of leadership as r elationship orientation and task orientation.

Using concepts fr om the Ohio Stat e studies, R eddin combined the tw o orientations, cr eating f our out comes: lo w r elationship/high task, lo w r elationship/low task, hig h r ela- tionship/low task, and hig h r elation- ship/high task. R eddin pr oposed the same applicatio n as T annenbaum and Schmidt: that the pot ential f or eff ectiveness should det ermine the mix of task and r elationship orientation accor ding to the elements present in the workplace situation. These tw o app roaches e xplained the natur e of a leader’s cir cumstances b y incorpor ating sit - uation-specific v ariables. This new perspecti ve helped shape mor e intricat e situational and contingency models. Herse y and Blanchar d’s situational leadership model pr ovides the most widel y not ed e xample of the situational appr oach. F red E. Fiedler then e xpanded the concepts with his contingency theory, which will be discussed below.

Hersey and Blanchard’s Situational Leadership Model The situationa l leadership model pr oposed b y Herse y and Blanchar d r eflects ho w a leader should adjust his or her leadership sty le accor ding t o the r eadiness of the f ollowers (Herse y & Blan chard, 1974; Herse y, Blanchar d, & Johnson, 200 1). The model suggests that leaders should be fle xible in choosin g a leadership beha vior sty le and become sensiti ve t o the r eadi- ness of the f ollower. R eadiness r efers t o the e xtent t o w hich a f ollower possesses the ability and pr eparation t o perf orm a gi ven task. Emplo yees with a hig h le vel of r eadiness r equire a diff erent leadership sty le than emplo yees with a lo w le vel of r eadiness. T able 8.2 indicat es r elationships between employee readiness and subsequent leader responses.

Table 8.2: Employee readiness and leader responses Employee readiness Leader response Unable and unwilling Provide clear specific instructions and details Unable but willing Explain tasks but build relationships with workers to obtain their trust and incr ease their levels of effort Able and unwilling Supportive leadership that incorporates participation to increase willingness Able and willing Little response required Monkeybusinessimages/iStock/Thinkstock Situational leadership theories emphasize the necessity of adapting one’s leadership orientation according to the circumstances.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Situational and Contingency Theories Section 8.3 The situation al leadership model can then be e xpanded t o incorpor ate elements of task beha vior and leader-member r elationships. T able 8.3 id entifies the possible leadership sty les that r esult fr om diff erent combinations of task -oriented and r elationship-oriented beha viors.

Table 8.3: Matching situations to leader styles Situation characteristicsLeadership style High task behavior/low relationship Telling and directing High task behavior/high relationship Selling and coaching Low task behavior/high relationship Facilitating and counseling Low task behavior/low relationship Delegating The t elling and dir ecting sty le is char acterized b y one-w ay communication, w here the leader t ells the f ollower w hat, ho w, w hen, and w here t o accomplish v arious task s. It will be most viable w hen the w ork t o be perf ormed is str aightforward and simple and the leader is not concerned about bonding or relating to followers. The selling and coaching sty le is char acterized b y a leader pr oviding most of the dir ection. The lea der incorpor ates tw o-way communication t o get the f ollowers t o “bu y int o” decisions. The sty le mat ches situations in w hich the w ork is str aightforward and uncomplicat ed but the leader wants to build bonds with followers. The f acilitating and counseling sty le is char acterized b y leaders sharing decision making with f ollowers because the emphasis is on building r elationships betw een leaders and f ollowers. The lea der e xhibits f acilitation beha viors because the f ollowers ha ve the ability and kno wl- edge to perform tasks. Finall y, in a deleg ating sty le, the leader lets the f ollowers run the sho w. No str ong r elation- ships are built and the followers are both willing and able to perform the task at hand.

Leaders using this model must be able t o implement alt ernative leadership sty les as needed. This model al so implies that if the corr ect sty les ar e used in lo wer-readiness situations, f ol- lowers will matur e and gr ow in ability , willingness, and confidence. This not onl y allo ws the f ollowers t o gr ow, but it also allo ws the leader t o become less dir ective. Situational leader - ship theory has enjo yed wide acceptance in the corpor ate community (F ernandez & V ecchio, 1997); ho wever, r esearch supporting the pr opositions in the model has been gener ally disap - pointing (Gr aeff, 1997). Crit icism of the model suggests it is t oo ambiguous t o eff ectively t est. Critics urge caution when seeking to apply its principles (Vecchio & Boatwright, 2002).

Fiedler’s Contingency Model Fred E. Fiedler’s (1967) contingency model suggest ed that leadership success depends on a mat ch betw een the leadership sty le and the demands of the situation. R ather than tr ain leaders t o adopt a new sty le, Fiedler belie ved that leaders should mat ch their sty les with \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Situational and Contingency Theories Section 8.3 situations that ar e the best fit . Contingency theory has been labeled the if/then appr oach. That is, if the situation has one set of char acteristics, then it becomes possible t o pr escribe the best style of leadership to achieve results.

Just lik e the situational appr oaches, contingency theory begins with the pr emise that a person ’s leadership sty le t ends t o be either task -oriented or r elationship-oriented. Fiedler assumed a person displays a fixed leadership style over time.

To r eveal the type of leadership sty le she or he pr efers, the leader r esponds t o it ems on the least pr eferred co worker (LPC) t est. The LPC t est consists of 16 contr asting sets of w ords that ma y be used t o describe the person at w ork the r espondent lik es the least . The pot en- tial ans wers include w arm or cold, friendl y or unfriend ly, supporti ve or hostile, accepting or r ejecting, and similar dichotomies. R elationship-oriented leaders scor e hig her on the t est, because each mor e positi ve choice adds t o the r espondent’s scor e. A hig h LPC scor e indic ates that the leader sees the positi ve side of a co worker that he or she least pr efers and e xhibits a r elationship-oriented appr oach t o leading. A lo w LPC scor e indicat es gr eater int erest in pr oduction, or a task -oriented leader . A lo w LPC leader does not tak e the time t o int eract with or understand co workers and/or f ollowers and ther efore does not see or report the more favorable characteristics Fiedler suggest ed that neither a r elationship-oriented nor a task -oriented sty le eff ectively serv es e very situation. Inst ead, each becomes mor e eff ective w hen used in the rig ht situation. In order to diagnose leadership situations, three contingency variables must be identified:

1. Leader-Member Relations:

the extent to which a leader has, or does not have, the support and loyalty of the work group.

2. Task Structure:

the extent to which tasks are routine, unambiguous, and easily underst ood. The more structured a task is, the more influence a leader holds.

3. Position Power:

the degree of power a leader has to reward and punish. More power equat es to more control and influence.

Using these thr ee dimension s, Fiedler construct ed the “dimension of f avorability,” as displa yed in Figur e 8.2. As sho wn, good leader-member r elations, hig h task structur e, and str ong posi- tion po wer constitut e the most f avorable situation. P oor r elations, lo w structur e, and w eak po wer indicat e the least f avorable. In the middle, situations become mor e mix ed in t erms of f avorability. Lat er, Fiedler collapsed the eig ht dimension s int o thr ee. A t the tw o e xtremes, the most and least f avorable ends of the continuum, labels w ere assigned suggesting these w ere lo w- and hig h-control situations. The mix ed f avorability sect or w as r enamed the “moder ate contr ol situation” (Ayman, Chemers, & Fiedler, 1995).

The r esearch Fiedler and man y others conduct ed led t o the construction of the “dimension of eff ectiveness.” As sho wn in the figur e, at the tw o e xtremes, eff ectiveness is hig her f or pr o- duction-oriented leaders, w here lo w and hig h contr ol si tuations e xist. In mix ed f avorability or moder ate control situations, people-oriented leaders are more likely to succeed.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Situational and Contingency Theories Section 8.3 Figure 8.2: Results of Fiedler’s research Production-oriented leaders (low LPC) are most effective at the extremes of situational favorability. P eople-oriented leaders (high LPC) do best in moderately favorable situations.

Source: Adapted from Fiedler, Fred E. (1974, Autumn). The Contingency Model—New Directions for Leadership Utilization. Journal of Contemporary Business.

Two r ecommendations emer ge fr om the r esearch. First , w hen a leader’s sty le has been identi - fied, it should be possible t o place that leader in appr opriate situations. Lo w LPC scor e leaders ar e best mat ched t o situations of lo w or hig h contr ol. The r easoning seems t o be that , w hen most or all of the situationa l elements ar e f avorable, a task -oriented leader w ould be able t o tak e ad vantage of the situat ion and achie ve the best r esults. Con versely, w hen most or all ele - ments ar e not f avorable, f ocusing on the task once ag ain appears t o be the most viable option.

Hig h LPC leaders fit with moder ate contr ol cir cumstances. Moder ate f avorability f avors peo - ple skills and closer int eractions with f ollowers. These leaders w ould then be able t o tak e ad vantage of the mor e f avorable f eatures and att empt t o r educe the unf avorable elements b y utilizing their people skills.

The second r ecommendation made b y Fiedler , w hich w ould appear t o be much less lik ely, w ould be t o r estructure the situation t o fit the leader . Doing so w ould oft en seem impr obable or not feasible.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Situational and Contingency Theories Section 8.3 The contingency theory app roach gener ated consider able debat e r egarding its v alue. Man y of the basic concepts ha ve been support ed b y r esearch (Schriesheim, T epper, & T etrault, 1994). A t the same time, some ha ve challenged the LPC instrument , suggesting tw o pr oblems. First , does the scale trul y measur e task or r elationship orientation or r ather that someone does or does not ha ve an enem y in the w orkplace? Second, LPC scor es t end t o change, dependent on the person’s situation. Thus, it becomes difficult to truly assess a person’s leader style.

Further, leader-member r elations, position po wer, and task structur e ma y be difficult t o assess.

Changing them t o fit a leader w ould add new complications. The primary complaint w as that most leaders w ould be unable t o r estructure their situations, gi ving the theory little pr actical value.

On the positi ve side, contingency theory mo ved the stud y of leadership mor e int o the r ealm of collecting and anal yzing data t o support or r efute v arious pr opositions. It also added t o the understanding of the conditions under w hich leaders oper ate. The concepts of leader- member r elations, task structur e, and position po wer incr ease a wareness of the impact of the w orkplace on leader style and subsequent performance.

In summary , the situational er a incorpor ates the idea that subor dinates should be consider ed as part of the f ormula w hen appointing, electing, or pr omoting a leader . Contingency theory specifies some k ey aspects of the situation (task structur e, position po wer, gr oup cohesi ve- ness) that explain times and places in which a leader is more likely to succeed.

In these situational and contingency models, managers can adjust their leadership sty les t o suit elements of the task and the r elationships betw een leaders and f ollowers. The ne xt gen - eration of leadership theori es mo ves be yond task - and people-cent ered appr oaches b y add - ing new dimensions to the study of the process. Comprehension Exercise 1. Which would be the best response to or leadership style for a set of employees or fol- lo wers with low task behavior and low level relationships?

a. telling and directing b. selling and coaching c. facilitating and counseling d. delegating 2. Which of the following is not an element of the situation in Fiedler’s contingency model of leadership?

a. leader-member relations b. leader LPC score c. leader position power d. task structure Answers: 1) d 2) b \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.  Late 20th Century Leadership Theories Section 8.4 8.4 Late 20th Century Leadership Theories The latt er half of the 20th century witnessed the de velopment of se veral inno vative appr oaches t o understanding leadership. These theories e xpanded view s of ho w leaders oper ate within v arious en vironments and with other members of an or ganization. The y also account f or gr eater comple xity in int eractions betw een the se veral f actors that influence leader eff ective- ness.

Among them, the substitut es f or leadership appr oach, leader-member e xchange theory , and path-goal theory gained traction in both the academic and business arenas.

Substitutes for Leadership An int eresting appr oach t o understanding leadership has been pr oposed b y St even K err and Richar d Jermi er (1978). These authors not ed that v arious f actors oft en limit the ability of a leader t o e xert an y kind of influence on indi vidual emplo yees. The net r esult ma y be cir cum- stances in w hich a leader’s eff orts ar e r edundant or unnecessary . In other w ords, these f ac- tors act as substitutes for leadership (see Table 8.4).

Table 8.4: Substitutes for leadership Subordinate characteristics• Experience • Professionalism Task characteristics • Machine-paced work • Intrinsically satisfying and motivating jobs Organizational characteristics • Cohesive work groups • Standardized jobs; formalized rules and procedures Source: Kerr, S. & Jermier, J. M. (1978). Substitutes for leadership: Their meaning and measurement, Organizational Behavior and Human Performance, 22(3), 375–403.

Employees w ho ar e intuiti ve, e xperienced, and pr ofessional r equire little or no supervision. W orker pr oductivity in machine-paced or assembl y line-type w ork depends on the speed of the line r ather than actions tak en b y the supervisor or leader . Intrinsicall y satisfying w ork, w here the r eward r esults fr om the task itself r ather than outside moti ves such as pa y or pr aise, mig ht r esult in a r educed need f or supervision. Cohesi ve w ork gr oups manage themsel ves in or der t o maintain their status as a t eam. Standar dized jobs with clear rules and pr ocedures dictat e how to perform with or without the presence of a leader.

The substitut es f or leadersh ip appr oach off ers tw o primary contributions t o leadership the - ory.

Fir st, the model e xplains the importance of the w ork situation w hen describing leader acti vities and eff ectiveness. Second, the appr oach points out situations in w hich leaders ar e limit ed b y cir cumstances, as w ell as those in w hich the y can tak e ad vantage of w orker inde- pendence and can ther efore f ocus on other task s than continual monit oring of the w orkplace.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.  Late 20th Century Leadership Theories Section 8.4 Leader-Member Exchange Theory One assumption that theorists should not mak e is that leaders view all emplo yees or subor di- nates in the same w ay. Inst ead, leader-member e xchange theory suggests that leaders t end t o f orm special bonds with a small number of f ollowers, kno wn as the leader’s in-gr oup. These indi viduals r eceive the gr eatest amount of leader att ention and enjo y certain pri vileges. Mem - bers of the lea der’s out-gr oup ha ve less access t o the leader’s time, r eceive f ewer or ganiza- tional rewards, and often develop more formal interactions with the leader.

Over time, the leader choo ses members of the in-gr oup and out-gr oup, and the selections ar e most lik ely based on emplo yee char acteristics. Tho se most compatible with the leader , and especiall y those the leader per ceives will be hig her perf ormers, become members of the in-gr oup. Leader-member e xchange theory posits that in- and out-gr oup status r emains r ela- tively stable betw een a leader and his or her chosen f ollowers o ver time (Duchon, Gr een, & T aber, 1986).

Research supports the conce pt that leaders do t end t o f avor certain emplo yees, and that those in the in-gr oup e xpress hig her le vels of satisf action with a supervisor , enjo y hig her perf or- mance r atings, and become less lik ely t o quit (Gerstn er & Da y, 1997). The r eason ma y be a si mple self-fulfilling pr ophecy in w hich the leader pr edetermines w hich emplo yees will be the most lik ely t o succee d b y gr anting them in-gr oup status. Logicall y, a leader could be ad vised that cr eating out-gr oups is count erproductive in the sense that it will alienat e certain emplo yees; ther efore, leaders should att empt t o establ ish positi ve and inclusi ve bonds with all employees.

An e xtension of the leader-member e xchange appr oach considers another le vel in the or gani- zational hier archy (Danser eau, Gr aen, & Hag a, 1975). A v ertical d yad is the link age betw een a leader at one r ank and a subor dinate at the ne xt lo wer r ank. Figur e 8.3 displa ys the r ela- tionship a supervisor has with a hig her-ranking manager as w ell as with emplo yees at lo wer le vels. This leader becomes a linking pin between the two sets of vertical dyads.

Figure 8.3: Leaders as linking pins A supervisor is a linking pin between subordinates and a higher-ranking manager. Source: Hersey, P., Blanchard, K. H., & Johnson, D. E. (2001). Management of organizational behavior: Leading human resources (8th ed.). Upper Saddle River, NJ: Prentice-Hall.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.  Late 20th Century Leadership Theories Section 8.4 Employees e xamine the r elationship their immediat e supervisor has with those of hig her r ank. When the y belie ve the supervisor enjo ys an in-gr oup r elationship with hig her-level managers, the subor dinates view that supervisor in a mor e f avorable lig ht, belie ving the supervisor has the following attributes:

• superior technical knowledge • access to information • upward influence These f actors encour age emplo yees t o build in-gr oup r elationships with the supervisor . When out-gr oup status is per ceived, emplo yees t end t o belie ve their car eers ha ve a lo wer chance of success (Dansereau, Graen, & Haga, 1975). Althoug h this model describes ho w leader-member r elations ar e f ormed thr ough observ a- tions of the leader’s int eraction with those of hig her r anks, it does not pr escribe w ays t o impr ove the r elationship. It does impr ove understanding of ho w indi viduals int eract with supervisors in the w orkplace, and “ho w things w ork” in t erms of pr omotions and the mor e political side of human r esource decisions and leader acti vities and r elationships in or ga- nizations.

Someone w ho per ceives an out-gr oup r elationship with his or her supervisor or betw een that supervisor and those of hig her r ank ma y understandabl y conclude that it ma y be time to look elsewhere for a job, because limited chances to advance may be available.

Path-Goal Theory As not ed at the beginning of this chapt er, the theories de veloped lat e in the 20th century include se veral distinct perspecti ves. Among these w as the path-goal theory de vel- oped b y R obert House (1971). P ath-goal theory suggests that eff ective leaders clear and clarify paths f or emplo yees t o help them accomplish both personal and pr ofessional goals.

C learing the path r efers t o a leader’s ability t o help people mo ve t owards their goals, r emove barriers, and pr ovide appr opriate guidance f or accomplishing assigned task s. H ouse identifies f our leadership beha viors that ar e associat ed with the theory:

• directive leadership • supportive leadership • achievement-oriented leadership • participative leadership The dir ective leadership sty le is one in w hich the leader lets emplo yees kno w w hat is e xpected, gi ves dir ections on ho w and w hat t o do, maintains standar ds of perf ormance, and clarifies the leader’s r ole in the gr oup. Supporti ve leadership entails tr eating gr oup members as equals, being appr oach- able, and sho wing concern f or the w ell-being of emplo yees. A chievement-oriented leadership Topp_Yimgrimm/iStock/Thinkstock Clearing a path can include anything from collaboration with employees to setting challenging goals.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.  Late 20th Century Leadership Theories Section 8.4 involves setting challenging goals, e xpecting hig h le vels of perf ormance, and emphasizing con - tinuous impr ovement in perf ormance. P articipative leadership in volves including emplo yees in decis ion making, consulting with emplo yees, and asking f or, and using, emplo yee sugges - tions when making decisions.

Path-goal leadership theory first suggest ed that a manager should displa y leadership sty les that complement the needs of the situation. In a lat er it eration of this appr oach, tw o con - tingency f actors w ere identified that will be diff erent or unique in each compan y: emplo yee char acteristics and en vironmental f actors. Subor dinate contingency f actors include locus of contr ol, task ability , need f or achie vement, e xperience, and need f or clarity . En vironmental f actors include independent task structur es and int erdependent task structur es. R elation- ships between the variables are displayed in Figure 8.4.

Figure 8.4: Reformulated path-goal theory A leader’s behavior is shaped by environmental and subordinate contingency factors. Effective leaders clear the path for employees to accomplish their goals.

Source: Adapted from: House, R. J. (1996, Autumn). Path-goal theory of leadership: Lessons, legacy, and a reformulated theory.

Leadership Quarterly, 323–352.

The pr edictions that arise fr om the r elationships betw een en vironmental and subor dinate contingency v ariables identify times w hen the leader’s beha viors mat ch the en vironmen- tal and subor dinate char acteristics, ther eby incr easing on-the-job perf ormance as w ell as emplo yee satisf action with the leader and the compan y. T able 8.5 suggests w ays leaders can r espond to these variables in order to achieve such positive organizational outcomes.

House further r efined his original theory b y suggesting that intrinsic moti vation pla ys a k ey r ole in leader eff ectiveness, especiall y w hen it de velops thr ough the empo werment of emplo y- ees.

Th e leader acti vities that build confidence in emplo yees e ventually r esult in str onger le v- els of moti vation within the w orkers themsel ves in addition t o the enticements, encour age- ment, or rewards provided by the leader (House, 1996).

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.  Late 20th Century Leadership Theories Section 8.4 Table 8.5: Leader behaviors CategoryDescription of leader activities Path-goal clarifying Clarify performance goals, provide task guidance, clarify paths to rewards contingent on performance.

Achievement-oriented Set challenging goals, showing confidence in employees.

Work facilitation Use standard management practices of planning, organizing, and control combined with coaching, mentoring, teaching, and providing feedback to w orkers.

Supportive Displa y concern for employee well-being, friendliness, approachableness.

Interaction facilitation R esolve disputes, facilitate communication, support all positions, collabo- ration and teamwork.

Group-oriented decision-making Outline problems rather than offering solutions to the group, encourage participation, pass along information to assist in decisions.

Representation and netw orking Maintain positive relationships within the group and with outsiders, att end social functions and ceremonies.

Value-based Establish a vision, show confidence in self and others; relate performance beha viors to the vision.

Source: House, R. J. (1996, Autumn). Path-goal theory of leadership: Lessons, legacy, and a reformulated theory. Leadership Quarterly, 323–352.

Results fr om r esearch e xamining the mat ches betw een leader beha viors, en vironmental char- act eristics, and subor dinate char acteristics, as pr oposed in path-goal theory , ha ve been mix ed (W offord & Li ska, 1993). Cr itics not e that the combinations of the r elationships depict ed in Figur e 8.4 w ould be quit e difficult t o pr ecisely identify . One r esponse t o these out comes has been t o r eturn t o the simplest pr opositions made in the theory . Eff ective managers clarify paths t o goals b y understanding w orker v alences or pr eferences, clarifying jobs and assign - ments, and r ewarding successful perf ormance. Consequentl y, this simplified view of the model explains the three main things that can be done to improve one’s leadership style.

Consider, f or e xample, a sales manager with thr ee subor dinates. One emplo yee t ends t o most v alue mone y, seeking t o achie ve bonuses, commissions, and other pa y incenti ves. A second is mor e int erested in mo ving up the corpor ate ladder and desir es opportunities t o learn about and practice leadership. The third is near the end of his career and mostly wants stability.

The sales manager can help each person indi vidually b y understanding these diff erences. Ne xt, the manager can e xplain t o the first person ho w t o gener ate new leads, mak e the best sales pit ch, and close deals. When the person impr oves sales figur es, the corr ect r ewards will f ollow (cash incenti ves, f or e xample). F or the second, the manager can tak e additional time t o e xplain ho w t o manage others and help the emplo yee find opportunities t o lead, such as b y chairing a committ ee or leading a task f orce. A perf ormance appr aisal stating the person has “leadership pot ential” r ewards the indi vidual with w hat she desir es the most . F or the thir d, the emphasis w ould shift t o methods f or r eassuring the indi vidual that , if he or she continues at the pr esent r ate of perf ormance, the job and the person ’s futur e ar e secur e. In essence, the leader can adapt the ideas displayed in Table 8.5 to each individual employee.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Leadership Theories Section 8.5 Comprehension Exercise 1. Subordinate characteristics, task characteristics, and organizational characteristics are k ey components of which theory or model of leadership?

a. substitutes for leadership b. leader-member exchange c. vertical dyad linkages d. charismatic leadership 2. In-group and out-group status are key components of which theories?

a. substitutes for leadership and path-goal b. leader-member exchange and vertical dyad linkages c. path-goal and transformational leadership d. transformational and charismatic leadership 3. Path-goal theory suggests leaders can clarify worker jobs and improve performance w hen they adapt to a. the substitutes for leadership.

b. employee in-group and out-group status.

c. supervisor in-group and out-group status.

d. environmental contingency factors and subordinate contingency factors. Answers: 1) a 2) b 3) d 8.5 Contemporary Leadership Theories The new mill ennium has witnessed incr eased att ention t o a series of additional theories about leadership, some of w hich w ere first pr oposed in the latt er half of the 20th century . Among them, the tr ansformational leadership model enjo ys a gr eat deal of popularity . Others with consider able f ollowings in some or ganizations include charismatic leadership, serv ant leadership, and authentic leadership.

Transformational Leadership Transformational leadership engenders trust , seek s t o de velop leadership in others , and e xhibits self-s acrifice. T ransformational leaders serv e as mor al agents, f ocusing themsel ves and f ollowers on objecti ves that tr anscend the mor e immediat e needs of the w ork gr oup (Dumdum, Lo we, & Dv orak, 2002). In contr ast, tr ansactional leadership concentr ates on clarifying emplo yee r oles and pr oviding job instructions . T ransactional leaders establish con - tingent r ewards based on perf ormance and emplo yee accomplishments. Managers acti vely sear ch f or e xceptions t o rules and standar ds and mak e corr ections. T ransactional leaders int ervene when standards are not met (Bass, 1990).

Transactional leadership can lead t o po werful eff ects on f ollowers and cr eate se veral desir- able outcomes, as displayed in Table 8.6.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Leadership Theories Section 8.5 Table 8.6: Transformational leadership processes Transformational effects on followers and work groups Outcomes Increased intrinsic motivation, achievement orientation, and goal pursuit Personal commitment to the leader and the indi vidual’s vision Increased identification with and trust of the leaderSelf-sacrificing behavior Increased identification and cohesion among group members Or ganizational commitment Increased self-esteem, self-efficacy, and intrinsic interests in goal accomplishment Task meaningfulness and satisfaction Shared perceptions of goal importance Increased individual, group, and organiza- tional performance Key lea der beha viors identified in the tr ansformational leadership lit erature include the f ollowing:

• inspirational motivation • idealized influence • individual consideration • intellectual stimulation Inspirational moti vation in volves establishing an enticing vision of the futur e and making per- suasi ve and emotional ar guments combined with enthusiasm and optimism. Idealized influ - ence means that leaders sacrifice f or the good of the gr oup, act as r ole models, and displa y hig h ethical standar ds. Indi vidualized consider ation includes pr oviding support , encour age- ment, empo werment, and coaching of emplo yees. Int ellectual stimulation means that tr ans- formational leaders encour age emplo yees t o question the status quo and seek inno vative and cr eative solutions to organizational problems. T ransformational leadership theory has g ained a gr eat deal of tr action in the new millen - nium.

Man y companies belie ve finding such leader s and tr aining others in these beha v- iors ar e the true k eys t o or ganizational success. T ransformational leadership influences emplo yee per formance b y lo wering frustr ation and incr easing optimism (McC oll-Kennedy & Anderson, 2002).

Charismatic Leadership Theory Closely r elated t o concepts r egarding tr ansformational leaders, charismatic leadership the - ory not es that man y times f ollowers attribut e her oic or e xtraordinary leadership abilities t o some indi viduals w hen the y e xhibit certain beha viors (Conger & Kanungo, 1998). T able 8.7 identifies key charismatic leader characteristics.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Leadership Theories Section 8.5 Table 8.7: Charismatic leader characteristics CharacteristicDescription Vision and articulation Communicates an idealized goal to others.

Personal risk Is willing to take high personal risks and engage in self-sacrifice.

Environmental sensitivity Makes realistic assessments about the environment and resources needed to make changes.

Sensitivity to follower needsUnderstands others’ abilities and responds to their needs.

Unconventional behavior Does things that are novel and counter to traditional norms.

Source: Conger, J. A., & Kanungo, R. J. (1998). Charismatic leadership in organizations. Los Angeles, CA: Sage.

A four-step pr ocess e xplains the w ays in w hich charism atic leaders influence f ollowers. First , the leader e xpresses an appealing vision that leads f ollowers t o belie ve a bett er futur e can be construct ed. Second, the leader sets hig h perf ormance e xpectations of others but also e xpresses confidence that those out comes can be achie ved. Thir d, thr ough w ords and actions, the lea der establishes v alues f or f ollowers t o emulat e. F ourth, the personal sacrifices made b y the leader challenge others t o be cour ageous and help achie ve the vision (Shamir , House, & Arthur, 1993).

Leadership e xperts belie ve a person can become a charismatic leader b y eng aging in thr ee acti vities. Firs t, an indi vidual must cr eate enthusiasm, e xpressing ideas not just with w ords, but also with deeds and the full set of communications skills at y our disposal t o help de velop an aur a of enthusiasm. Second, the leader should cr eate bonds with others t o inspir e action. Thir d, the person must tap int o the emotions of others in a w ay that brings out their pot ential (Richar dson & Thayer, 1993).

Some e vidence suggests that charismatic leaders incr ease le vels of perf ormance and sat - isfaction in f ollowers (Kir kpatrick & Lock e, 1996). Those w orking with such leaders gi ve e xtra eff ort due t o bonds with the leader . The y also e xpress satisf action as a r esult of those connections.

Charismatic leadership ma y be situation specific. What inspir es emplo yees in one setting ma y not w ork as w ell in others. Also, charismatic leadership t ends t o f ocus on a s weeping vision of the or ganization and its futur e dir ection. It ma y be that the beha viors and acti vities needed t o seek such goals ar e limit ed t o those at the r ank of CEO or t op manager , and t o entr epreneurs.

Additional cri ticism of the charismatic model includes the pr emise that not all or ganizations ma y benefit fr om such an indi vidual. Companies in crisis or those r equiring str ong dir ection due t o en vironmental challenges w ould be best serv ed b y such indi viduals because subor di- nates will be looking t o leaders w ho can pr ovide a clear sense of dir ection as t o ho w t o survi ve the emer gency. In contr ast, stable companies with calm cir cumstances ma y be bett er suit ed t o a diff erent sty le of leadership, one less dr amatic or charismatic. Finall y, some charismatic leaders ha ve seeming ly become mor e int erested in the tr appings of hig h r ank (a nice office, support staff, an e xpense account) than in continuing t o serv e as eff ective or ganizational dir ectors (Raelin, 2003).

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Leadership Theories Section 8.5 The contr ast t o charismatic leadership, t ermed le vel 5 leadership, combines indi vidual capability , t eam skills, managerial pr oficiencies, and moti vational skills with personal humil - ity and pr ofessional will. R ather than self-aggr andizing, a le vel 5 leader sets ego aside in the sear ch t o achie ve or ganizational goals. Ov er time, studies of le vel 5 leadership and charis- matic leaders hip will yield int eresting r esults as t o w hich sty le benefits or ganizations the most , and under w hich cond itions. The OB in Action f eature r egarding Richar d Br anson not es an individual who is both charismatic and exhibits level 5 leadership attributes. OB in Action: Richard Branson Many people kno w that entr epreneur Richar d Br anson is one of the richest people in the w orld. Using the Vir gin br and, Br anson built an entir e air line as w ell as a r ecord and ent er- tainment compan y, among other businesses. What some mig ht not kno w, ho wever, is ho w he w as able t o succeed. Among the pr aise that has been spok en or writt en r egarding this amazing pioneer are stories of how he leads.

When ask ed t o describe his t op thr ee leadership principles, Br an- son ans wered: List ening, learning, and laug hter. He said, “List ening enables us t o learn fr om each other , fr om the mar ketplace, and fr om the mistak e that must be made in or der t o get an ywhere that is origi- nal and disrupti ve. I learn so much fr om guests and emplo yees that w ay” (Schawbel, 2014).

Branson ar gues that learning and leadership go t ogether. He belie ves part of his success can be e xplained b y the willingness t o list en t o and learn from other people.

Regarding laug hter, Br anson stat es, “My number one rule in business, and in lif e, is t o enjo y w hat y ou do. R unning a business in volves long hours and har d decisions; if y ou don ’t ha ve the passion t o k eep y ou going, y our business will mor e than lik ely f ail. If y ou don ’t enjo y w hat y ou are doing, then you shouldn’t be doing it” (Schawbel, 2014).

Branson belie ves in br eaking the rules. In f act, he ar gues that he ne ver learned the rules in the first pla ce. Among other things, this leads t o hiring people w ho can help with his w eaknesses. He look s at personality mor e than pedigr ee w hen making se lections, looking f or people w ho will be compatible with his approach. When making personnel decisions, Br anson str esses a pr omote-from-within appr oach. He said, “I lik e t o tak e chances on people, and w henever possible, pr omote fr om within—it sends a gr eat message t o e veryone in the compan y w hen someone demonstr ates a passion f or the job and leadership skills at every step along the way and is rewarded with a leadership role.” With his man y personal triumphs along with business achie vements, Br anson has f ound a place among the most inspiring, uncon ventional, charismatic leaders of the past f ew decades. His emphasis on valuing others indicates a level 5 leadership orientation as well.

Reflection and Application Questions 1. Do you believe listening, learning, and laughter are keys to leadership in every situation?

2. How might a promote-from-within policy hurt a company, or is it always the best appr oach for a leader?

3. Evaluate Richard Branson’s leadership style based on his comments in this story. Ton Koene/age fotostock/SuperStock Richard Branson.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Leadership Theories Section 8.5 Servant Leadership It is possible that the ear ly theories of leadership de veloped w hen those in char ge w ere somew hat authoritarian, and success depended on that attribut e. The beha vioral perspecti ve incorpor ated a gr eater consider ation of f ollower attribut es. Then situational/contingency er a emer ged, further combining both perf ormance and people. In that er a, leaders w ere t o be both r esults-oriented and people-orient ed. Mor e r ecently, leadership writ ers emphasized empo wering emplo yees, so that much of a leader’s r esponsibility in volved de veloping and utilizing f ollowers. As leadership thinking shift ed fr om an anal ysis of leaders t o a combina - tion of leaders and f ollowers t o a gr eater w eight gi ven t o f ollowers, the intr oduction of ser- v ant leadership was the result. In 1970, R obert Gr eenleaf pr esented man y original concepts in The Ser vant as Leader. S er- vant leadership str esses se rving others, plac ing the needs of others abo ve one’s o wn, helping others learn, gr ow, and de velop, and seeing a leader’s primary r ole as service t o emplo yees, cust omers, sh areholders, communities, and the gener al public. These ideas g ained additional tr action in the w orld of business as the new century unf olded. In his book, Gr eenleaf off ered f our basic precepts regarding servant leadership: 1. Put ser vice before self-interest. A servant leader is more concerned about helping and serving others than personal success, status, financial rewards, or power. Organiza- tions exist to benefit employees and others, not just for financial gain. Leaders are committ ed to doing what is right no matter what the cost.

2. Listen first to build confidence in others. Instead of imposing their will on others, serv ant leaders are committed to listening to others and discovering their needs and concerns and what it will take to make them successful.

3. Inspire trust by being trustworthy. Servant leaders earn trust by being honest, moral, true to their words, committed to focusing on the well-being of others, and transpar- ent in what they do. 4. Nourish ot hers and help them become whole. Servant leaders genuinely care about fol- lowers and about developing their full potential.

Typical char acteristics of serv ant leaders include humility and selflessness, serving and de veloping others, emphasizing shar ed leadership, ha ving a selfless lo ve f or others, v aluing people, modeling int egrity and authenticity , inspiring and influencing others, being honest and trustw orthy, being a good st eward, empo wering others, f orgiving others, consulting and in volving others, and committing to building a sense of community. While indi vidual scholars posit diff ering view s of the char acteristics of serv ant leaders, a gen - eral agr eement includes the belief that serv ant leaders e xhibit a desir e or sense of calling t o serv e others, the y build positi ve r elationships with others and ar e committ ed t o de velop- ing the pot ential of others, and the y anchor their decisions and actions in ethical and mor al principles.

Serv ant leadership has r eceived pr aise fr om a number of w ell-known leadership writ ers. Also, supporting r esearch indicat es that serv ant-oriented beha vior pr oduces bett er r esults in emplo yees and or ganizations. Serv ant leadership has been embr aced as a guiding philoso- ph y f or man y companies such as Service Mast er, South west Air lines, The T oro Compan y, and Men ’s Warehouse. \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Contemporary Leadership Theories Section 8.5 Authentic Leadership An additional theory w hich captur ed some att ention in the past f ew decades is authentic leadership, as first de veloped and described b y Harv ard Pr ofessor and f ormer Medtr onic CEO Bill Geor ge (2007). In contr ast t o the idea that “leadership is acting, ” the authentic model poses a mor e genuine appr oach t o the r ole and t o int eractions with others. Geor ge suggests authentic leadership consists of five qualities (George, 2015).

• Understanding one’s purpose • Practicing solid values • Leading with the heart • Establishing connected relationships • Demonstrating self-discipline Those w ho subscribe t o this appr oach suggest that aut hentic leaders fr ame their lif e st ories in a manner that enables them t o view their w orld as indi viduals w ho learn fr om their e xperi- ences, not as passi ve observ ers. The y e xamine their e xperiences and r eflect on them t o gr ow as people and as leaders. This in volves continual self-e xploration. The y r ely on f ormal and inf or- mal support netw orks t o he lp them sta y gr ounded and lead int egrated li ves (Geor ge, Sims, McLean, and Mayer, 2007). Others summarize authentic leaders as follows (Kruse, 2013):

• self-aware and genuine • mission driven and focused on results • willing to lead with their hearts and not just their minds • not afraid to show their emotions and vulnerabilities • focused on the long-term The appr oach points out that a leader can be emotionall y connect ed with others without being “soft .” P erhaps the best e xample in the past f ew de cades w ould be the hig hly-successful f ootball coach Dick V ermeil, w ho w as kno wn f or crying spontaneousl y and fr eely in fr ont of his t eam, but w as also t ough-minded and hig hly r espected b y pla yers and others w ho int er- acted with him.

Critics of this appr oach ar gue it t oo much r esembles ear ly tr ait theories and does not r eflect w hat tr anspires in the w orkplace. A t the same time, other academics and businesspeople belie ve it represents a clear pathway to a truly rewarding and successful career as a leader.

Ethical Implications for Leaders At the beginning of this chapt er, leadership w as defined as “influencing beha viors.” Numer ous e xamples of ethical leadership ar e a vailable, including Seth Goldman, f ounder of Honest T ea, Indr a Noo yi, CEO of P epsiCo, and Anthon y L. Spezia, f ormer CEO of Co venant Health S ystems. Unf ortunately, in man y cases, beha viors and other or ganizational out comes ha ve been influ - enced b y leaders in neg ative r ather than positi ve w ays. Ex amples include the f ailure of British P etroleum lea der T ony Ha yward during the 2010 Gul f of Me xico oil spill (the corpor ation r eassigned Ha yward t o a diff erent part of the w orld); Ho me Depot CEO R obert Nar delli, w hose t ermination f ollowing his tr oubled leadership of the corpor ation came with a $210 million \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources severance pack age; and mor e r ecently, John Dumpf, disgr aced CEO at W ells F argo, and Martin Shkr eli, w ho w as accused of price gouging as CEO of T uring Pharmaceuticals.

These and other incidents ha ve led major or ganizations such as the A cad- emy of Management t o str ess that ethics tr aining should be part of an y leadership or managemen t tr aining. E thical leadership tr aining pr ograms in volve sensiti vity t o ethical and mor al issues, de veloping fr ameworks and guideposts t o inf orm ethical dilemmas, using coaching and ment oring pr o- grams, and pr oviding ethics counsel - ing w hen pr oblems arise. Go vernmen- tal eff orts t o r egulate unethical actions b y leaders ha ve also been undertak en, most notabl y in the ar ea of financial fr aud. The goal is t o pr ovide t oday’s students and futur e leaders with a str ong ethical and moral background prior to their entry into the world of commerce. Comprehension Exercise 1. Which style of leadership engenders trust, seeks to develop leadership in others, and e xhibits self-sacrifice?

a. substitutes for leadership b. transformational leadership c. transactional leadership d. charismatic leadership 2. Which characteristic does not match the servant leadership approach?

a. the end justifies the means b. inspire trust by being trustworthy c. listen first to build confidence in others d. nourish others and help them become whole Answers: 1) b 2) a Summary and Resources Chapter Summary Leadership is influencing the beha viors of indi viduals and gr oups t o w ork t oward pr edeter- mined goals. Eff ective leaders influence beha viors in positi ve w ays. The v arious cat egories of leadership theories include the tr ait, beha vioral, and situational and contingency theories, lat e 20th century approaches, and even more recent theories. Wavebreakmedia Ltd./Wavebreak Media/Thinkstock Leaders have the power to make both a positive and negative impact, making ethics training an important agenda item for any burgeoning leader.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Trait theory suggests that leaders e xhibit ph ysical and personality char acteristics w hich dif- f erentiate them fr om f ollowers. Similar ly, the gr eat man theory posit ed that some indi viduals ar e sim ply born with specifi c leadership qualities w hile others ar e not . Eff ective leaders come in all sh apes, sizes, nationalities, age gr oups, and le vels of attr activeness and fr om both gen - ders.

Ear ly e vidence suggest ed that some of the Big Fi ve personality f actors ar e pr edictive of becoming a leader; however, they may not predict effective leadership.

Behavioral theories de veloped at the onset of W orld W ar II soug ht t o identify specific beha v- iors associat ed with successful leadership, w hich w ould then mak e it possible t o tr ain emplo yees t o become mor e eff ective leaders. The Michig an stud y identified job-cent ered or pr oduction-oriented managers and emplo yee-centered leaders, ar guing that people-orient ed leaders w ould build bett er t eams and cr eate a bett er w orkplace en vironment. The Ohio Stat e stud y cat egorized leader beha viors as those that initiat ed structur e (pr oduction f ocused) and sho wed consider ation f or others (people f ocused), suggesting that leaders w ho e xhibited both types of beha viors w ould be mor e eff ective. The leadership grid ar gued f or essentiall y the same type of managerial sty le. The most r ecent beha vioral appr oach incorpor ates leader de velopmental acti vities int o the primary dimensions and pr oposes a r elationship betw een those behaviors and positive organizational outcomes.

The situational and contingency models suggest that no one uni versal sty le of leadership will be most eff ective. Situation al theories pr opose adaptin g leader sty le fr om task -oriented t o r elationship-oriented depending on the situation. The contingency appr oach r ecommends task -oriented (lo w LPC) leaders f or situations with lo w or hig h contr ol and r elationship- orient ed leaders (hig h LPC ) f or situations e xhibiting moder ate le vels of pot ential contr ol. Herse y and Blanchar d’s situational leadership model suggests alt eration of leader sty le based upon employee readiness.

Late 20th century view s of leadership theory include an eclectic set of ideas and models. The substitut es f or leadership appr oach discusses limitations of the ability of a leader t o function and circumstances under which other forces take the place of leadership. Leader-member e xchange theory suggests that leaders cr eate in-gr oups of f ollowers the y f avor and out-gr oups of those the y do not . The v ertical d yad link ages model suggests that f ol- lowers observ e the in- or out-gr oup status of their leaders with those of hig her r ank. When in-gr oup status is per ceived, f ollowers become mor e willing t o build in-gr oup r elationships with their leaders and see those leaders in a more favorable light.

Path-goal theory suggests that leader beha viors will be modified b y en vironmental contin - gency f actors and subor dinate contingency f actors, and this should be account ed f or w hen pr edicting or ganizational out comes and success. Leader s can adapt their sty les t o fit with the cir cumstances they encounter. In the new millennium, additional theories ha ve emer ged. T ransformational leaders engender trust , seek t o de velop leadership in others, e xhibit self-sacrifice, and serv e as mor al agents, f ocusing themsel ves and f ollowers on objecti ves that tr anscend the mor e immediat e needs of the work group. Charismatic leaders incr ease le vels of perf ormance and satisf action in f ollowers b y establish - ing and communicating a vis ion w hile building bonds with f ollowers. Serv ant leaders embod y \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources a strong emphasis on helping others r ather than simple pursuit of personal objecti ves. Le vel 5 leadership combines indi vidual capability , t eam skills, managerial pr oficiencies, and moti - vational skills with personal humility and professional will. A uthentic leaders understand their purpose, pr actice solid v alues, lead with the heart , estab - lish connected relationships, and demonstrate self-discipline. CASE STUDY: Strong Medicine Marcus R eynolds f aced man y challenges as he assumed leadership of the A ction Pharmaceuti - cal compan y. He knew the compan y’s emplo yees w ere counting on his guidance t o lead the w ay in the ne xt decade. The entir e industry w as e xperiencing scrutin y and neg ative publicity . It was his responsibility to restore the firm’s good name and solid reputation.

Action Pharmaceutical’s primary ar eas of drug de velopment w ere antibiotics, pain- r elieving medicines including anti-inflammat ory medicines, and anti viral pr oducts. The compan y enjo yed a gr eat deal of success in pain-r eduction pr oducts w hile other companies e xperienced r ecalls and lawsuits over drugs with dangerous side effects.

Four major challenges continue t o influence the pharmaceutical industry . First , go vernmental r egulatory agencies, especiall y the F ood and Drug A dministration (FD A), ha ve r eceived sub - stantial criticism r egarding oper ational methods and r esultant findings. Consumers e xpress lo wer le vels of confidence in FD A appr ovals. Second, go vernments in man y countries ha ve established price contr ols, w hich in turn r educe compan y r evenues and funding f or continu - ing r esearch. Th ird, small-molecule r esearch has encount ered incr easing difficulty , and finding t echnologies t o meet these needs has been pr oblematic. F ourth, pat ent li ves ar e v ery short and generics oft en appear on the mar ket bef ore name-br and drugs ha ve r ecovered costs and become profitable (Buxton, 2010).

Reynolds w as frustr ated b y the t enor of the debat e o ver medicines. He w as a ware of the neg a- tive image pharmaceutical companies endur ed during the 2009–2010 debat e o ver uni versal health car e in the Unit ed Stat es. He w as concerned about continuing comments r egarding the lo wer prices for drugs in Canada, where governmental controls exist. R eynolds belie ved it w as time t o establish a new vision f or the compan y t o r espond t o this tur bulent en vironment. He belie ved that the message should begin with A ction Pharmaceuti - cal serving as a health r esource t o the Unit ed Stat es and the w orld. The message should be pr esented t o int ernal emplo yees and mo ve outw ard that companies such as his w ere not the enem y; r ather, the y should be view ed as partners in eff orts t o impr ove health and the li ves of citizens.

As part of his eff orts, Mar cus planned t o meet with as man y indi viduals and t eams as pos - sible in the coming y ear. He w anted t o str ess that , in his mind, the compan y w as a f amily. He belie ved that the emplo yees should shar e his vision of A ction Pharmaceutical as a helping agent t o impr ove mor ale and build f or the futur e. It w asn’t the cultur e of his compan y that w as the concern, bu t r ather the en vironment surr ounding the compan y. No w w as the time t o get start ed. (continued) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources CASE STUDY: Strong Medicine (continued) Case Questions1. What was the primary leadership challenge facing Marcus Reynolds?

2. What could Marcus learn from the traits and characteristics models of leadership?

3. How might the behavioral theories of leadership assist Marcus?

4. What substitutes for leadership might be present in Action Pharmaceutical?

5. Should Marcus seek to become a transformational or charismatic leader? If so, how w ould he achieve that status? If not, why should he use some other approach or method? Review Questions What Big Five personality characteristics have been potentially related to effective leadership?

The Big Fi ve ar e e xtroversion, agr eeableness, conscientiousness, neur oticism v s. emotional stability , and openness to experience.

Describe political intelligence and emotional intelligence.

Emotional int elligence, w hich is the ability t o manag e oneself and one’s r elationships in matur e and constructi ve w ays, appears t o pr edict leader success. P olitical int elligence, w hich indicat es the willingness t o use po wer and intimidation t o achie ve v arious ends, also appears t o be an asset in cir cumstances in w hich change is r equired and subor dinates ar e r esistant t o those changes.

What are the four behavioral theories of leadership?

The f our beha vioral theories of leadership include the Uni versity of Michig an stud y, the Ohio Stat e study, the leadership grid, and the Scandinavian development-oriented approach.

Which authors developed situational theories of leadership?

Robert T annenbaum and W arren Schmidt’s situational theory of leadership suggest ed a dif- f erent thir d k ey leadership v ariable: eff ectiveness. Wil liam R eddin identified the tw o main dimensions of leadership, r elationship orient ed and task orient ed, w hich w ere t o be used along a continuum of task and relationship orientation.

What are the three characteristics of the situation in Fiedler’s contingency theory model?

Fielder’s thr ee contingency v ariables ar e leader-member r elations, or the e xtent t o w hich a leader has, or does not ha ve, the support and lo yalty of the w ork gr oup; task structur e, w hich is the e xtent t o w hich task s ar e r outine, unambiguous, and easil y underst ood; and position po wer, which is the degree of power a leader has to reward and punish.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources What role does readiness play in Hersey and Blanchard’s situational leadership model?

Readiness r efers t o the e xtent t o w hich a f ollower possesses the ability and r eadiness t o per- f orm a gi ven ta sk. Emplo yees with a hig h le vel of r eadiness r equire a diff erent leadership sty le than employees with a low level of readiness.

What three categories of factors create substitutes for leadership?

The substitut es f or leaders hip cat egories ar e subor dinate char acteristics (e xperience and pr ofessionalism); task char acteristics (machine-paced w ork and intrinsicall y satisfying and moti vating jobs); and or ganizational char acteristics (cohesi ve w ork gr oups, standar dized jobs, and formalized rules and procedures).

What roles do in-groups and out-groups play in leader-member exchange theory and vertical dyad linkages theory?

Members of the leader’s in-gr oup r eceive the gr eatest amount of leader att ention and enjo y other pri vileges. Members of the leader’s out-gr oup ha ve lo wer access t o the leader’s time, r eceive f ewer or ganizational r ewards, and t end t o de velop mor e f ormal int eractions with the leader.

What are the primary components of path-goal theory?

The components ar e leader beha viors, en vironmental contingency f actors, subor dinate con - tingency factors, and outcomes (performance and satisfaction).

Define transformational leadership and charismatic leadership.

Transformational leaders engender trust , seek t o de velop leadership in others, e xhibit self- sacrifice, and serv e as mor al agents, f ocusing themsel ves and f ollowers on objecti ves that tr anscend the mor e immediat e needs of the w ork gr oup. Charismatic leadership theory not es that man y times f ollowers attribut e her oic or e xtraordinary leadership abilities t o some indi- viduals as they exhibit certain behaviors.

Analytical Exercises 1. Explain how the Big Five personality characteristics might be used (in a person’s mind) to evaluate a new leader in the context of attribution theory.

2. Evaluate the behavioral theories in terms of how each would apply to the following situations: • managing the night shift at a fast-food restaurant • coaching a college women’s basketball team • managing an e-commerce program for a major retail chain • your most recent job experience 3. Identify the common elements among the behavioral theories, the situational and contingency theories, and path-goal theory. Explain how their uses are the same or diff erent in each theory.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources 4. Explain the common elements among Hersey and Blanchard’s situational leader- ship model, transformational leadership theory, and charismatic leadership theory. Explain how the theories are the same and how they are different.

5. Some authors believe charismatic leaders focus on themselves and level 5 leaders f ocus on helping others achieve organizational outcomes. Explain the type of leader that best fits each of the following situations. What role would the substitutes for leadership play in each of these circumstances? • a medical research team developing a preventive vaccination for HIV/AIDS • a retail store on the verge of insolvency/bankruptcy • a professional sports team • a 24-hour news network Key Terms consideration Leadership behavior that e xpresses concern for employees by estab- lishing a warm, supportive, friendly climate.

in-group Set of individuals that receive the greatest amount of leader attention and enjo y certain privileges. initiating structur e Leadership behav- ior that organizes and defines what group members should be doing.

leadership  Influencing behaviors of indi- viduals and groups toward predetermined goals in organizations.

level 5 leadership  A combination of indi- vidual capability, team skills, managerial pr oficiencies, and motivational skills with personal humility and professional will.

linking pin The individual who connects tw o sets of vertical dyads: the vertical dyad of the individual and a higher-ranking manager and the vertical dyad of the indi- vidual and a lower-level employee.

out-group  Set of individuals that have less access to the leader’s time, receive fewer or ganizational rewards, and often develop mor e formal interactions with the leader.political intelligence The willingness to use power and intimidation to achieve vari- ous results.

readiness The extent to which a follower possesses the ability and preparation to perf orm a given task.

servant leadership  A style of leadership that stresses serving others, placing the needs of others above one’s own, and help- ing others learn, grow, and develop.

transactional leadership  A style of leadership that concentrates on clarify- ing employee roles and providing job instructions. tr ansformational leadership A style of leadership that seeks to engender trust, de velop leadership in others, exhibit self- sacrifice, and serve as a moral agent, where the leader focuses on objectives that tran- scend the more immediate needs of the w ork group.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.