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Chapter 14: Power, Influence,

Leadership
Leadership is the ability to influence
employees to voluntarily pursue organizational
goals
Managers and leaders: Not always the same

Managers do planning, organizing, directing, and


control

Leaders inspire, encourage, and rally others to achieve great


goals
Managers implement a companys vision and strategic plan
Leaders create and articulate that vision and plan

Managerial leadership: Can you be BOTH a


manager and a leader?

Yes
Individuals are able to exhibit a broad array of contrasting
behaviors (behavioral complexity)
In the workplace, people are capable of exhibiting managerial
leadership, defined as the process of influencing others to
understand and agree about what needs to be done and the
process of facilitating individual and collective efforts to
accomplish shared objectives
Influencing leadership
Facilitating- management

Being a manager means


POLC
Planning, organizing, leading,
controlling
Executing plans and delivering
goods and services
Managing resources
Being conscientious
Acting responsibly

Being a leader means


Being visionary
Being inspiring, setting the tone,
and articulating the vision
Managing people
Being inspirational (charismatic)
Acting decisively

Putting customers firstresponding to and acting for


customers
Mistakes can happen when
managers dont appreciate people
are the key resource.

Putting people first- responding to


and acting for followers
Mistakes can happen when
leaders choose the wrong goal, or
inspiration, overlead, or fail to
implement the vision

Coping with complexity versus


coping with change: the
thoughts of John Kotter
-

John Kotter: suggests that one is not better than the other, that
in fact, they are complementary systems of action

Management is about coping with complexity


Leadership is about coping with change

Being a manager: Coping with complexity


-

Management is necessary because complex organisations,


especially the large ones that so much dominate the economic
landscape, tend to be chaotic, unless there is good management
Companies manage complexity in 3 ways:

1) Determining what needs to be


done- planning and budgeting

Set targets or goals for the


future, establish steps for
achieving them, allocate
resources to accomplish
them

2) Creating arrangements of
people to accomplish an agendaorganizing and staffing

Management achieves its


plan by organizing and
staffing
Creating the organizational
structure and hiring
qualified individuals to fill
the necessary jobs, then
devising systems of
implementation
Management ensures the

3) Ensuring people do their jobs-

controlling and problem solving


-

plan is accomplished by
controlling and problem
solving
Managers monitor results
versus the plan in some
detail (reports, meetings
etc)

Being a leader- coping with change


Leadership copes with change in 3
1) Determining what needs
to be done-setting a
direction
2) Creating arrangements
of people to accomplish an
agenda- aligning people
3) Ensuring people do their
jobs-motivating and
inspiring

ways:
Develop a vision for the future, along
with strategies for realizing the
changes
Communicate the new direction to
people in the company who can
understand the vision and build
coalitions that will realize it
Leaders try to achieve their vision by
motivating and inspiring

5 sources of power
Authority: the right to perform or command, it comes with the job
Power is the extent to which a person is able to influence others so
they respond to orders
Personalised power- power directed at helping oneself
Socialised power- power directed at helping others
Within an organization, there are 5 sources of leaders may draw on:
Legitim
ate

Reward

Influencing behavior because of ones formal position


Power that results from managers formal positions within
the organization
Influencing behavior by promising or giving rewards
Power that results from managers authority to reward
their subordinates
Rewards range from praise to pay raises, from recognition
to promotions

Coercive

Influencing behavior by threatening or giving punishment


Results from managers authority to punish their
subordinates
Punishments range from verbal or written reprimands to
demotions to terminations
Fines and suspensions may also be used

Expert

Influencing behavior because of ones expertise


Power resulting from ones specialized information or
expertise

Referen
t

Influencing behavior because of ones personal attraction


Strong, visionary leaders who are able to persuade their
followers by dint of their personality, attitudes or
background
May be associated with managers, but more likely to be
characteristic of leaders

Leadership and influence: using


persuasion to get your way at
work
9 tactics for influencing others:
Rational persuasion
Inspirational appeals
Consultation
Ingratiating tactics

Personal appeals
Exchange tactics
Coalition tactics

-Convince someone using reason,


logic or facts
- Trying to build enthusiasm or
confidence by appealing to others
emotions, ideals, or values
- Getting others to participate in a
decision or change
- Acting humble or friendly or
making someone feel good or feel
important before making a
request
- Referring to friendship and
loyalty when making a request
- Reminding someone of past
favours or offering to trade
favours
- Getting others to support your

Pressure tactics
Legitimating tactics

effort to persuade someone


-Using demands, threats or
intimidation to gain compliance
-Basing a request on ones
authority or right, organizational
rules or policies, or express or
implied support from superiors

These influence tactics are considered generic because they are


applied in all directions- up, down, sideways, within the organization
First 5 tactics: Soft tactics
Last 4 tactics: Hard or pressure tactics
Research shows that of the 3 possible responses to an influence tacticenthusiastic commitment, grudging compliance and outright
resistance- commit is most apt to result when the tactics used are
consultation, strong rational persuasion, and inspirational appeals

5 approaches to leadership

Trait approaches: do leaders


have distinctive personality
characteristics?
Ralph Stogdill: Concluded that dominance, intelligence, self-confidence,
high energy and task-relevant knowledge were typical of successful
leaders
Stogdill was one of the many contributors to trait approaches to
leadership, which attempt to identify distinctive characteristics that
account for the effectiveness of leaders

Is trait theory useful?

2 ways in which organisations apply trait


theory:
1) Use personality and trait assessments: May incorporate
personality and trait assessments into their selection and
promotional processes
2) Use management development programs: To enhance employee
leadership traits, organisations send targeted employees to

management development programs (management classes,


coaching sessions, trait assessments etc)

Kouzes and Posners research:


is honesty the top leadership
trait?

1)
2)
3)
4)

James Kouzes and Barry Posner surveyed more than 20,000


people around the world as to what personal traits they looked
for, and admired in their superiors
Respondents suggested that a credible leader should have 4
traits
Honest
Forward looking
Inspiring
Competent

These 4 traits constitute a leaders credibility- people want leaders to


have a sense of direction, and be credible

Gender studies: do women have


traits that make them better
leaders?

66% of 18 to 34 year old women say being successful in a high


paying career is one of the most important things or very
important in their lives
Todays generation of females are more highly skilled and
educated, so they can compete in a different way
55% of women and 57% of men aspire to be CEO
It is possible that women may have traits that make them better
managers/ leaders than men

The evidence on women executives

Women executives, when rated by their peers, underlings, and


bosses, scored higher than their male counterparts on a wide
variety of measures- from producing high quality work to goal
setting to mentoring employees
Desirable traits in which women excel:
Teamwor
- More collaborative
- Produce more quality
k and
- Seek less personal
work
partnerin
glory
- Recognising trends
g
- Being motivated less
- Generating new ideas,
by self-interest than in
and acting on them
what they can do for
- Display more social
the company
leadership. While men
- More stable
display more task
- Less turf conscious
leadership

The lack of women at the top


Reasons:
1) Unwillingness to compete or sacrifice: Many women simply arent
willing to compete as hard as most men are or are not willing to
make the required personal sacrifices
2) Modesty: Overly modest, give credit to others rather than taking
it for themselves undermine opportunities for promotions and
raises
3) Lack of a mentor: Less likely than their male counterparts to
have access to a supportive mentor
4) Starting out lower, and more likely to quit: eg, getting an MBA

Leadership lessons from the


GLOBE project
Project GLOBE: (global leadership and organizational behavior
effectiveness): Massive and ongoing attempt to develop an empirically
based theory to describe, understand, and predict the impact of
specific cultural variables on leadership and organizational processes
and the effectiveness of these processes
-

Certain attributes of leadership were universally liked or disliked


Visionary and inspirational charismatic leaders who are good
team builders generally do the best
Self-centred leaders seen as loners or face savers generally
receive a poor reception worldwide

Universally positive leader attributes


Trustworthy
Just
Honest
Foresight
Plans ahead
Encouraging
Positive
Dynamic
Motive arouser
Confidence builder
Motivational

Dependable
Intelligent
Decisive
Effective bargainer
Win-win problem
solver
Admin skilled
Communicative
Informed
Coordinator
Team builder
Excellence oriented

Universally
negative leader
attributes
Loner
Asocial
Noncooperative
Irritable
Non explicit
Egocentric
Ruthless
Dictatorial

Do effective leaders behave in


similar ways?
Whats important to know about leaders: NOT their personality traits,
but rather, their patterns of behavior or leadership styles
-Behavioral leadership approaches, which attempt to determine the
distinctive styles used by effective leaders

- Leadership styles: the combination of traits, skills and behaviors that


leaders use when interacting with others
Consider: Task orientation vs people orientation

University of Michigan leadership model


- By Rensis Likert
- 2 types: 1) Job centered and 2) employee centered
Job Centered
- Im concerned more with the needs of the job
- Managers pay more attention to the job and work
procedures
- Concerned with production efficiency, keeping costs
down, and meeting schedules
Employee
- Im concerned more with the needs of employees
centered
- Managers paid more attention to employee
satisfaction and making work groups cohesive
- Hope to build effective work groups with high
performance goals

Ohio state leadership model


- Developed at Ohio State University
- By Ralph Stogdill
- 2 major dimensions of leader behavior:
Initiating
What do I do to get the job done?
structure
-Leadership behavior that organizes
-Defines what group members should be doing
-Efforts the leader makes to get things organized
and get the job done
Much like Job centred behavior
Consideration
- What do I do to show consideration for my
employees?
- Consideration is leadership behavior that
expresses concern for employees
- Establishes a warm, friendly, supportive
climate
- Sensitive to subordinates ideas and
feelings and establishes mutual trust

What is more important, leadership traits or behavior?


-

Leadership behavior

Contingency approaches: does leadership vary


with the situation?
-

Contingency approach to leadership: Effective leadership


behavior depends on the situation at hand
2 contingency approaches:
1. Contingency leadership model by Fiedler
2. Path goal leadership model by House

1.Contingency leadership model: Fiedlers


approach
Determines if a leaders style is 1) Task oriented or 2) relationship
oriented and if that style is effective for the situation at hand

2 leadership orientations: task versus relationships

You and your employees should fill out a questionnaire in which


you think of the coworker you least enjoyed working with and
rate him or her according to an 8 point scale of 16 pairs of
opposite characeristics
The higher the score, the more relationship oriented the person
The lower the score, the more task oriented

3 dimensions of situational control


Situational control: How much control and influence a leader has in the
immediate work environment
Leadermember
relations

Task
structure

Position
power

Do my subordinates accept me as a leader?


Most important component of situational control
Reflects the extent to which a leader has or
doesnt have the support, loyalty and trust of
the group
Do my subordinates perform unambiguous,
easily understood tasks?
Shows the extent to which tasks are routine,
unambiguous and easily understood
The more structured the jobs, the more
influence a leader has
Do I have the power to reward and punish?
Refers to how much power a leader has to make
work assignments and reward and punish
more power = more control and influence

Which style is more effective?


-

Neither leadership style is effective all the time


Although each is right in certain situations

When task
oriented
style is best

Works best in either high control or low control


situations

High control situations ( leader decisions produce


predictable results because he or she can influence work
outcomes)
- Supervising traffic police
1) High leader-member relations (subordinates
supportive of you)
2) High task structure ( subordinates jobs are clearly
defined)
3) High position control ( complete authority to
evaluate their performance, dole out rewards and
punishments)
Low control situations
- Leaders decisions cannot produce predictable
results because he or she cant really influence
outcomes
- Eg, principle trying to clean up graffiti on walls
1) Low leader-member relations: many people might

When
relationship
oriented
style is best

not see a need for the goal


2) The task structure: low, people might see different
ways to achieve the goal
3) Position power: low, committee is voluntary,
people are free to leave
- In situations of moderate control
- Eg: working in a government job, supervising a
group of firefighters fighting wildfires
1. Low leader-member relations (if you were
promoted over others in the group) but
2. High task structure (job fairly well defined)
3. Low position power (rigidity of civil service job
prohibits you from rewarding or punishing)

2.Path-goal leadership model: Houses


approach
-

Developed by Robert House


Holds that the effective leader makes available to followers
desirable rewards in the workplace and increases their
motivation by clarifying the paths, or behavior, that will help
them achieve those goals and providing them with support
A successful leader helps followers by tying meaningful rewards
to goal accomplishment, reducing barriers, providing support, so
as to increase the number and kinds of personal pay offs to
subordinates for work-goal attainment
Graphical model proposed :

What determines leadership effectiveness:


employee characteristics and environmental
factors affect leader behavior
-

2 contingency factors: Employee characteristics and


environmental factors,
Cause some leadership behavior to be more effective than others

Employee
characteristi
cs

Environmen
tal factors
Leader
behaviors

5 employee characteristics:
1) locus of control
2) task ability
3) need for achievement
4) experience
5) and need for path-goal clarity
2 environmental factors:
1) task structure (independent vs interdependent
tasks)
2) Work group dynamics
4 leader behaviors:
1) Directive
2) Supportive
3) Participative
4) Achievement-oriented

Employees with an internal locus of control are more likely to


prefer achievement-oriented leadership or group oriented
decision making
Because they believe they have control over the work
environment
Employees with an external locus of control: view the
environment as uncontrollable
Prefer the structure provided by supportive or path-goal
clarifying leadership
House expands the styles of leader behavior from 4 to 8
Also puts more emphasis on the need for leaders to foster
intrinsic motivation through empowerment
Revised theory stresses shared leadership (employees do not
have to be supervisors or managers to engage in leader
behavior)

Does the revised path-goal theory work?


-

Not enough research

3 important implications:

Use more than 1


leadership style
Help employees
achieve their
goals
Modify leadership
style to fit
employee and
task
characteristics

To be an effective leader

Guide and coach employees

A small set of employee characteristics


(ability, experience, and need for
independence), and environmental factors
( task characteristics of autonomy, variety,
and significance) are relevant contingency
factors

Applying situational theories: 5


steps
1) Identify important
outcomes

2) Identify relevant employee


leadership behaviors

3) Identify situational
conditions

4) Match leadership to the


conditions at hand

What goals am I trying to


achieve?
- Manager must determine
the goals he or she is trying
to achieve for a specific
point in time
What management
characteristics are best?
- Managers need to identify
which specific behaviors
may be appropriate for the
situation
What particular events are
altering the situation?
- Fiedler and House both
identify potential
contingency factors to be
considered, but there may
also be other practical
considerations
How should I manage when there
are multiple conditions?

5) Determine how to make the


match

If there are too many


possible situational
conditions, the research
may not be able to provide
conclusive
recommendations
- Managers will need to rely
on their knowledge of
organizational behavior to
determine which leadership
behavior is best
Change the manager or change
the managers behavior?
- Implementing the decisions
reached in step 4, a
manager can take either a
contingency theory
approach or a House pathgoal theory approach
- The person in the leadership
role can be changed, or the
manager can change his or
her behavior

The full range model: uses of


transactional and
transformational leadership
-

Approach by Bernard Bass and Bruce Avolio


Full range leadership
Suggests that leadership behavior varies along a full range of
leadership styles
From take-no-responsibility (laissez-faire) leadership at one
extreme, through transactional leadership, to transformational
leadership at the other extreme
Transactional and transformational leadership behaviors are both
positive aspects of being a good leader

Transactional vs transformational leaders


Transactional

Power stems from the ability to provide

Transformational

rewards and threaten reprimands


- In exchange for your subordinates
doing the work
- Focusing on clarifying employees roles
and task requirements and providing
rewards and punishements contingent
on performance
- Also encompasses the fundamental
managerial activities of setting goals
and monitoring progress towards their
achievement
- Best in stable situations
- Encourage employees to do ordinary
things
- most needed in rapidly changing
situations
- Transforms employees to pursue
organizational goals over self-interests
- Engender trust, seek to develop
leadership in others, exhibit selfsacrifice, and serve as moral agents
- Encourage employees to do
exceptional things
- Higher levels of intrinsic motivation,
trust, commitment, and loyalty
- Influenced by 2 factors:
1) Individual characteristics
- Leaders are more extroverted, agreeable,
proactive, open to change
2) Organisational culture
- Adaptive, flexible
- more likely than rigid, bureaucratic
cultures to foster transformational
leadership

The best leaders: BOTH


transactional and
transformational
-

Transactional leadership: an essential PREREQUISITE to effective


leadership

Transformatinal leadership leads to superior performance when it


augments or adds to transactional leadership

4 key behaviors of
transformational leaders
1) Inspirational motivation

Let me share a vision that transcends us


all
- Have charisma: a form of
interpersonal attraction that inspires
acceptance and support
- Charismatic leadership: Assumed to
be an individual inspirational and
motivational characteristic of
particular leaders
- A transformational leader inspires
motivation by offering a vision
- The right vision unleashes human
potential
- Serves as a beacon of hope and
common purpose

2) Idealised influence

We are here to do the right thing


- Express their integrity by being
consistent, single-minded, and
persistent in their pursuit of their goal
- - Display high ethical standards, acts
as models of desirable values, make
sacrifices for the good of the group
You have the opportunity here to grow and
excel
- Express concern for subordinates
wellbeing
- - Also actively encourage them to
grow and to excel b giving them
challenging work, more responsibility,
empowerment, and one on one
mentoring
Let me describe the great challenges we
can conquer together
- Communicates the organisations
strengths, weaknesses, opportunities
and threats so that subordinates

3) Individualised
consideration

4) Intellectual stimulation

develop a new sense of purpose


Employees become less apt to view
problems as insurmountable or thats
not my department
- Learn to view them as personal
challenges that they are responsible
for overcoming, to question the status
quo, and to seek creative solutions

Implications of transformational
leadership for managers
- Positively associated with:
1) Measures of organizational effectiveness
2) Measures of leadership effectiveness and employee job
satisfaction
3) More employee identification with their leaders and their
immediate work groups
4) Commitment to organizational change
5) Higher levels of intrinsic motivation, group cohesion, work
engagement, setting of goals consistent with those of the leader,
and proactive behavior
3 important implications of transformational leadership for managers:
1) Can
improve
results for
both
individuals
and groups
2) Can be
used to
train
employees
at any level
3) It
requires
ethical
leaders

Can use the 4 types of transformational behavior just


described to improve results for individuals job
satisfaction, organizational commitment, and
performance

TO become more transactional and transformational

With high profile scandals on unethical behavior among


leaders, the need for ethical leadership becomes more
apparent
Without honesty and trust, transformational leaders lose
credibility not only with employees, but also with
investors, customers and the public
To ensure positive results from transformational
leadership, top managers should follow the following:

4 additional perspectives
1.
2.
3.
4.

leader-member exchange (LMX) model of leadership


servant leadership
e-leadership
the role of followers

Leader
member
exchange
(LMX)
leadership
: having
different
relationshi
ps with
different
subordinat
es

Proposed by George Graen and Fred Dansereau,


the leader-member exchange model of leadership
emphasizes that leaders have different sorts of
relationships with different subordinates
Looks at quality of relationships between
managers and subordinates
Unlike other models which presuppose stable
relationship between leaders and followers, the
LMX model assumes each manager-subordinate
relationship is unique

In-group exchange vs out-group exchange


-

Ingroup exchange: Trust and respect: the


relationship between leader and follower becomes
a partnership characterized by mutual trust,
respect and liking, and a sense of common fates
Subordinates may receive special assignments and
may also receive special privileges
Outgroup exchange: Lack of trust and respect:
Leaders are characterized as overseers who fail to
create a sense of mutual trust, respect, or

common fate.
Subordinates receive less of managers time and
attention

Is LMX model useful?


-

Servant
leadership
: meeting
the goals
of
followers
and the
organizati
on, not of
oneself

Not clear why a leader selects particular


subordinates to be part of the in-group
But presumably the choice is made for reasons of
compatibility and competence
A positive leader-member exchange is positively
associated with goal commitment, trust between
managers and employees, work climate,
satisfaction with leadership and job performance
and satisfaction
A moderately strong positive relationship between
LMX and organizational citizenship behaviors
Developed by Robert Greenleaf
Focuses on providing increased service to othersmeeting the goals of both followers and the
organization- rather than to oneself
Not a quick fix approach to leadership, but rather,
it is a long term, transformational approach to life
and work

10 characteristics of the servant leader:

Eleadership
:
managing
for global
networks

Followers:
what do
they want,
how can
they help?

1)
2)
3)

Can involve one-to-one, one-to-many, withingroup, between-group, and collective einteractions via information technology
Having to deal with quite a number of
responsibilities
Developing business opportunities through
cooperative leaderships
Restructuring a company into global networks
Decentralising the companys organization
Energising the staff
E-leaders have a global mindset, recognize the
internet is opening new markets and recharging
existing ones
Dont bother fighting competitors, too bus creating
businesses that will surround and destroy them
Individual companies will be replaced by much
broader global networks, a single CEO cannot
manage
20th century management emphasized
competition, future organisations will run on
knowledge sharing and open exchange
Followers want leaders who: create feelings of:
Significance
Community
Excitement

What do leaders want in their followers? :


HELPERS.
- Sometimes, independents
- Productive, reliable, honest, cooperative,
proactive, and flexible
- Do not want followers who are reluctant to take
the lead on projects, fail to generate ideas,
unwilling to collaborate, withhold information,
provide inaccurate feedback, or hide the truth
3 types of people:
1) Helpers (most compliant)
2) Independents (less compliant)
3) Rebels (least compliant)