14 Leadership in Organizational Settings McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc All rights reserved Leadership at Infosys “In essence, leadership is about dreaming the impossible and helping followers achieve the same,” says Nandan Nilekani, chief executive of Infosys, one of India’s largest and most successful information technology companies McShane/Von Glinow OB4e Slide 14-2 © 2008 The McGraw-Hill Companies, Inc All rights reserved What is Leadership? Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members McShane/Von Glinow OB4e Slide 14-3 © 2008 The McGraw-Hill Companies, Inc All rights reserved Shared Leadership • Leadership is not restricted to people in formal management positions • Anyone in the organization may and should be a leader in various ways and at various times • Effective companies encourage employees to be leaders when needed (e.g change champions) McShane/Von Glinow OB4e Slide 14-4 © 2008 The McGraw-Hill Companies, Inc All rights reserved Perspectives of Leadership Competency Perspective Implicit Leadership Perspective Leadership Perspectives Transformational Perspective McShane/Von Glinow OB4e Behavioral Perspective Contingency Perspective Slide 14-5 © 2008 The McGraw-Hill Companies, Inc All rights reserved Seven Leadership Competencies Emotional Intelligence Integrity Drive Leadership Motivation • Perceiving, assimilating, understanding, and regulating emotions • Truthfulness • Translates words into deeds • Inner motivation to pursue goals • Need for achievement, quest to learn • High need for socialized power to accomplish team’s or firm’s goals more McShane/Von Glinow OB4e Slide 14-6 © 2008 The McGraw-Hill Companies, Inc All rights reserved Seven Leadership Competencies (con’t) Self-Confidence • Strong belief in one’s ability to lead others Intelligence • Above average cognitive ability • Can analyze problems/opportunities Knowledge of the Business • Familiar with business environment • Aids intuitive decision making McShane/Von Glinow OB4e Slide 14-7 © 2008 The McGraw-Hill Companies, Inc All rights reserved In Search of Leader Integrity • Likely the most important leadership competency • Also called “authentic leadership” – Individual acts with sincerity – Has a higher moral capacity to judge dilemmas • Most people think business leaders lack integrity: – 73% say CEOs of large firms can’t be trusted (US) – Less than one-third of Asian workers are satisfied with their level of trust in management McShane/Von Glinow OB4e Slide 14-8 © 2008 The McGraw-Hill Companies, Inc All rights reserved Competency Perspective Limitations • Implies a universal approach • Alternative combinations of competencies might work just as well • Some traits are subjective • Several competencies indicate leadership potential, not actual leadership McShane/Von Glinow OB4e Slide 14-9 © 2008 The McGraw-Hill Companies, Inc All rights reserved Leader Behavior Perspective What makes Bruce Draper (shown here) one of the best bosses in Great Britain? He provides plenty of supportive leadership, says employee Hannah Delany “Bruce cares about his staff and never takes them for granted…He appears friendly, approachable and kind and makes sure everyone is content in their job.” McShane/Von Glinow OB4e Slide 14-10 © 2008 The McGraw-Hill Companies, Inc All rights reserved Path-Goal Leadership Styles • Directive – Task-oriented behaviors • Supportive – People-oriented behaviors • Participative – Encouraging employee involvement • Achievement-oriented – Using goal setting and positive selffulfilling prophecy McShane/Von Glinow OB4e Slide 14-12 © 2008 The McGraw-Hill Companies, Inc All rights reserved Path-Goal Leadership Model Employee Contingencies Leader Behaviors • • • • Leader Effectiveness • Employee motivation • Employee satisfaction • Leader acceptance Directive Supportive Participative Achievementoriented Environmental Contingencies McShane/Von Glinow OB4e Slide 14-13 © 2008 The McGraw-Hill Companies, Inc All rights reserved Path-Goal Contingencies Employee Contingencies • Skill/Experience • Locus of Control Environmental Contingencies Directive Supportive Participative Achievement low low high high external external internal internal Directive Supportive Participative Achievement Task Structure nonroutine routine nonroutine ? Team Dynamics –ve norms low cohesion +ve norms ? McShane/Von Glinow OB4e Slide 14-14 © 2008 The McGraw-Hill Companies, Inc All rights reserved Other Contingency Leader Theories • Situational Leadership Model (Hersey/Blanchard) – Effective leaders vary style with follower “readiness” – Leader styles – telling, selling, participating, and delegating – Theory 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 suggests that people have a preferred leadership style based on personality McShane/Von Glinow OB4e Slide 14-15 © 2008 The McGraw-Hill Companies, Inc All rights reserved Leadership Substitutes • Contingencies that limit a leader’s influence or make a particular leadership style unnecessary • Examples: –Training and experience replace task-oriented leadership –Cohesive team replaces supportive leadership –Self-leadership replaces achievement-oriented leadership • Research evidence: substitutes help, but don’t completely substitute for real leadership McShane/Von Glinow OB4e Slide 14-16 © 2008 The McGraw-Hill Companies, Inc All rights reserved Transformational Leadership at P&G Procter & Gamble CEO A G Lafley practices transformational leadership without using charisma By forming and communicating a clear vision and modeling that vision, he has transformed the consumer goods company in recent years McShane/Von Glinow OB4e Slide 14-17 © 2008 The McGraw-Hill Companies, Inc All rights reserved Transformational v Transactional Leaders • Transformational leaders – Leading changing the organization to fit environment – Change agents • Transactional leaders – Managing linking job performance to rewards – Ensure employees have necessary resources – Apply contingency leadership McShane/Von Glinow OB4e Slide 14-18 © 2008 The McGraw-Hill Companies, Inc All rights reserved Transformational v Charismatic Leaders • Is charismatic leadership essential for transformational leadership? • Some experts say yes, but emerging view is that: – Charisma is distinct from transformational leadership – A personal trait that might help transform, or might just help the leader – Charismatic leadership might have opposite effect creates dependence, not empowerment McShane/Von Glinow OB4e Slide 14-19 © 2008 The McGraw-Hill Companies, Inc All rights reserved Transformational Leadership Elements Creating a Strategic Vision Communicating the Vision Transformational Leadership Building Commitment McShane/Von Glinow OB4e Modeling the Vision Slide 14-20 © 2008 The McGraw-Hill Companies, Inc All rights reserved Evaluating Transformational Leadership • Transformational leadership is important – Higher employee satisfaction, performance, org citizenship, creativity • Transformational leadership limitations – Circular logic leaders effective by definition – Universal theory • Need a contingency-oriented theory • Recognize differences across cultures McShane/Von Glinow OB4e Slide 14-21 © 2008 The McGraw-Hill Companies, Inc All rights reserved Implicit Leadership Perspective Attributing Leadership Implicit Leadership Perspective Need for Situational Control McShane/Von Glinow OB4e Stereotyping Leadership Slide 14-22 © 2008 The McGraw-Hill Companies, Inc All rights reserved Cultural Issues in Leadership • Societal cultural values and practices affect leaders: – Shape leader’s values/norms – Influence decisions and actions • Some leadership styles are universal, others differ across cultures – “Charismatic visionary” seems to be universal – Participative leadership works better in some cultures than others McShane/Von Glinow OB4e Slide 14-23 © 2008 The McGraw-Hill Companies, Inc All rights reserved 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 McShane/Von Glinow OB4e Slide 14-24 © 2008 The McGraw-Hill Companies, Inc All rights reserved Evaluating Female Leaders • Past evidence – Women rated less favorably than equivalent male leaders due to stereotyping • Recent evidence – Women rated more favorably than men, particularly on emerging leadership styles (coaching, teamwork) McShane/Von Glinow OB4e Slide 14-25 © 2008 The McGraw-Hill Companies, Inc All rights reserved 14 Leadership in Organizational Settings McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc All rights reserved ... reserved Leader Behavior Perspective • People-oriented behaviors – Showing mutual trust and respect – Concern for employee needs – Looks out for employee well-being • Task-oriented behaviors – Assign... All rights reserved Path-Goal Leadership Styles • Directive – Task-oriented behaviors • Supportive – People-oriented behaviors • Participative – Encouraging employee involvement • Achievement-oriented... Leadership Perspective Leadership Perspectives Transformational Perspective McShane/Von Glinow OB4e Behavioral Perspective Contingency Perspective Slide 14-5 © 2008 The McGraw-Hill Companies, Inc