Leadership in Organisational Settings McShane-Olekalns-Travaglione OB Pacific Rim 3e © 2010 The...

Leadership in Organisational Settings

McShane-Olekalns-Travaglione OB Pacific Rim 3e

© 2010 The McGraw-Hill Companies, Inc. All rights reserved

1

New Zealand Post CEO John Allen

New Zealand Post CEO John Allen is described as an effective leader.

He energetically supports and communicates an appealing ‘customer-

centric’ vision of the company’s future and anchors his decisions and

actions around a set of core values aligned with the company.

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2 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

Leadership Defined

Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organisations of which they are members.

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Shared Leadership

The view that leadership is broadly distributed rather than assigned to one person.

Employees are leaders when they champion change in the company or team.

Shared leadership calls for: Formal leaders willing to delegate power Collaborative culture – employees support each other Employee ability to influence through persuasion

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LeadershipLeadership

perspectivesperspectives

Competency Competency perspectiveperspective

Contingency Contingency perspectiveperspective

Implicit Implicit leadership leadership perspectiveperspective

Transformational Transformational perspectiveperspective

Perspectives of Leadership

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Behavioural Behavioural perspectiveperspective

Competency Perspective

Competencies – personal characteristics that lead to superior performance in a leadership role (eg. skills, knowledge, values)

Early research – very few ‘traits’ predicted effective leadership

Emerging view – several competencies now identified as key influences on leadership potential and of effective leaders

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Self-conceptSelf-concept

DriveDrive

• Positive self-evaluation• High self-esteem and self-efficacy• Internal locus of control

• Inner motivation to pursue goals• Inquisitiveness, action-oriented

IntegrityIntegrity• Truthfulness• Consistency in words and actions

PersonalityPersonality• Extroversion, conscientiousness

(and other traits)

Eight Leadership Competencies

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more

Cognitive/Cognitive/practical practical

intelligenceintelligence

• Above average cognitive ability• Able to solve real-world problems

Knowledge ofKnowledge ofthe businessthe business

• Understand external environment• Aid intuitive decision making

Eight Leadership Competencies (cont.)

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Leadership Leadership motivationmotivation

• High need for socialised power to achieve organisational goals

Emotional Emotional intelligenceintelligence

• Perceiving, assimilating, understanding, and regulating emotions

Competency Perspective Limitations

1. Implies a universal approach

2. Alternative combinations of competencies might work just as well

3. Assumes leadership is within the person• But leadership is also about relations with followers

4. Competencies refer to leadership potential, not performance

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Leader Behaviour Perspective

People-oriented behaviours• Showing mutual trust and respect • Concern for employee needs• Looks out for employee wellbeing

Task-oriented behaviours• Assign specific tasks• Ensure employees follow rules• Set ‘stretch goals’ to achieve performance capacity

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Leader Behaviour Perspective Limitations

People-task categories mask subcategories of leader behaviour that may be distinct

Assumes best leaders display a high level of both people and task styles• But best style seems to depend on the situation

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Striving to Become the Starbucksof Sushi

Award-winning Singaporean

entrepreneur Douglas Foo

demonstrates plenty of

achievement-oriented leadership

by challenging staff to make Sakae

Sushi the Starbucks of sushi. He

also demonstrates supportive

leadership by promoting family

values and treating employees with

respect.

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Douglas Foo

Path-Goal Leadership

Originated with expectancy theory of motivation • Paths = employee expectancies • Goals = employee performance

States that effective leaders ensure that employees who perform their jobs well receive more valued rewards than those who perform poorly

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Douglas Foo

Path-Goal Leadership Styles

Directive• Provide psychological structure to jobs• Task-oriented behaviours

Supportive• Provide psychological support• People-oriented behaviours

Participative• Encourage/facilitate employee involvement

Achievement-oriented• Encourage peak performance through goal setting and

positive self-fulfilling prophecy

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Path-Goal Leadership Model

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EmployeeEmployeecontingenciescontingencies

EmployeeEmployeecontingenciescontingencies

EnvironmentalEnvironmentalcontingenciescontingenciesEnvironmentalEnvironmentalcontingenciescontingencies

LeaderLeaderbehavioursbehaviours

LeaderLeaderbehavioursbehaviours

• Directive

• Supportive

• Participative

• Achievement-oriented

• Directive

• Supportive

• Participative

• Achievement-oriented

Leader Leader effectivenesseffectiveness

Leader Leader effectivenesseffectiveness

• Employee motivation

• Employee satisfaction

• Acceptance of leader

• Employee motivation

• Employee satisfaction

• Acceptance of leader

Directive Supportive Participative AchievementEmployeeContingencies

Path-Goal Contingencies

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Skill/experience low low high high

Locus of control external external internal internal

Task structure nonroutine routine nonroutine ?

Team dynamics –ve norms low cohesion +ve norms ?

EnvironmentalContingencies Directive Supportive Participative Achievement

Other Contingency Leader Theories

Situational Leadership Model• Effective leaders vary style with follower ‘readiness’• Leader styles – telling, selling, participating, and

delegating• Popular model, but lacks research support

Fiedler’s Contingency Model• Leadership style is stable – based on personality• Best style depends on situational control• Theory has problems, but uniquely points out

inflexibility of leadership style

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Leadership Substitutes

Contingencies that limit a leader’s influence or make a particular leadership style unnecessary• eg. training and experience replace task-oriented

leadership

Research evidence: substitutes help, but don’t completely substitute for real leadership

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Transformational Leadership at P&G

A. G. Lafley, CEO of Procter &

Gamble, practises

transformational leadership

without using charisma. By

forming and communicating a

clear vision and modelling that

vision, he has transformed the

consumer goods company.

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A. G. Lafley

Transformational vs. Transactional Leaders

Transformational leaders• Leading – changing the organisation to fit

the environment• Change agents

Transactional leaders• Confusing definitions, but originally about

seeking employee compliance through rewards, punishment, and negotiation

Managing – achieving current objectives more efficiently • Link job performance to rewards• Provide staff with necessary resources• Relates to contingency leadership theories

(eg. path-goal)

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A. G. Lafley

Transformational v. Charismatic Leaders

Some leadership models say charismatic leadership is essential for transformational leadership

Emerging view – charisma differs from transformational leadership

Charisma is a personal trait that provides referent power• Doesn’t necessarily attempt to

change the organisation

Transformational leadership is a set of behaviours to bring about change

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A. G. Lafley

Transformational Leadership Model

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Developa strategic

vision

Communicate the vision

Model the vision

Build commitment to the vision

Elements of

transformational

leadership

Transformational Leadership Elements

Create a strategic vision• Image of company’s attractive

future• Motivates and bonds employees• Leader champions the vision

Communicate the vision• Frame message around a grand

purpose• Shared mental model of the future• Use symbols, metaphors, stories

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Developa strategic

vision

Communicate the vision

Elements of transformational

leadership

Transformational Leadership Elements (cont.)

Model the vision• Walk the talk• Symbolise/demonstrate the

vision through behaviour• Employees trust leader more

Build commitment to the vision• Increased through communicating

and modelling the vision• Increased through employee involvement in

shaping the shared vision

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Developa strategic

vision

Communicate the vision

Model the vision

Build commitment to the vision

Elements of transformational

leadership

Evaluating Transformational Leadership

Transformational leadership is important• Higher employee satisfaction, performance,

organisational citizenship, creativity

Transformational leadership limitations• Some models have circular logic

- Defines transformational leaders by their success rather than their behaviour (result: no predictive value)

• Universal theory- Need a contingency-oriented theory- Recognise differences across cultures

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Implicit Leadership Perspective

Follower perceptions of characteristics of effective leaders:

1. Leadership prototypes• Preconceived image of effective leader, used to

evaluate leader effectiveness

2. Romance of leadership effect• Amplify effect of leaders on organisational results• Fundamental attribution error• Need for situational control

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Cultural Issues in Leadership

Societal cultural values and practices affect leaders• Shape leaders’ values/norms• Influence decisions and actions• Shape follower prototype of effective leaders

Some leadership styles are universal, others differ across cultures• ‘Charismatic visionary’ seems to be universal• Participative leadership works better in some

cultures than others

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Gender Issues in Leadership

Male and female leaders have similar task- and people-oriented leadership

Participative leadership style is used more often by female leaders

Evaluating female leaders• Still receive negative evaluations as leaders due to

prototypes and gender stereotypes• But evidence that they are good at emerging

leadership styles (coaching, teamwork)

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Leadership in Organisational Settings

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