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(BQ) Part 2 ebook Leadership - Theory, application, & skill development has contents: Leader–Follower relations; team leadership and self managed teams; leadership of culture, ethics, and diversity; strategic leadership and change management; strategic leadership and change management.
Chapter Outline Evolution of the Dyadic Theory Vertical Dyadic Linkage (VDL) Theory Leader–Member Exchange (LMX) Theory Team Building Systems and Networks Leader–Follower Relations Leader–Member Exchange Theory The Influence of LMX on Follower Behavior The Three-Stage Process for Developing Positive LMX Relations Factors that Determine LMX Quality Effective Leader–Follower Feedback Limitations of LMX Theory Application Bias in LMX: Employee Career Implications Learning Outcomes After studying this chapter, you should be able to: Followership The Effective Follower, and Follower Types List the four stages of development of the dyadic approach p 240 Guidelines to Becoming an Effective Follower Describe the main focus of team building from a Leader–Follower perspective p 244 Determinants of Follower Influence Dual Role of Being a Leader and a Follower Delegation Delegating Delegation Decisions Delegating with the Use of a Model Define the two kinds of relationships that can occur among leaders and followers under the vertical dyadic linkage model p 241 Discuss the focus of the systems and networks approach from a Leader– Follower perspective p 245 Describe three determining factors of high-quality LMX relationships p 250 Discuss the key limitation or drawback with LMX application p 252 Explain the cycle that leads to the Pygmalion effect p 254 Explain how LMX relationships can lead to unintended bias in HR practices p 254 Discuss the three follower influencing characteristics p 261 10 List five things a leader should delegate p 265 11 Define the following key terms (in order of appearance in the chapter): 238 dyadic followership dyadic theory follower vertical dyadic linkage (VDL) theory alienated follower in-group passive follower out-group effective follower leader–member exchange (LMX) pragmatic follower impressions management locus of control ingratiation delegation self-promotion delegation model conformist follower Chapter Opening Case Lakewood Church is the largest and fastest-growing church in America today The leader of the church is Pastor Joel Osteen He is one of a new generation of evangelical entrepreneurs/leaders who has transformed his church into a mega-empire using smart marketing tools traditionally employed by for-profit organizations.1 The highly diverse, nondenominational church he inherited from his late father in 1999 has more than quadrupled in size, welcoming upward of 40,000 visitors a week A youthful-looking, forty-something-year-old with a ready smile, Osteen is media savvy and knows how to use technology to reach his followers Osteen’s relationship with his followers and his approach to delivering the message is anything but conventional He does not yell or cry for sinners to repent He preaches a positive, upbeat gospel of hope and prosperity Almost immediately, Osteen is able to win the trust of those who hear him As Mr Osteen himself puts it, “I don’t condemn and I don’t believe in being judgmental.”2 Osteen believes that encouraging and lifting people’s spirits will gain their respect, admiration, and loyalty—-a message that business leaders can apply with their employees, customers, or colleagues Joel Osteen’s services are surprisingly intimate considering the size of the congregation People who need a special prayer are invited up front to counsel with a “prayer partner”—-who could be a member of the Osteen family and leadership team or a volunteer trained for the job These dyadic relationships allow for meaningful exchanges between church leaders and followers The church service and the meet-and-greet are the only opportunities Osteen’s followers have to get close to him personally Unlike his father, Osteen does not perform weddings or funerals He avoids sickbeds and does not personal counseling He has delegated these tasks to his assistants Members seem to be fine with the arrangement.3 Leader–Follower Relations A P P L I C A T I O N Music and entertainment are a big part of Joel Osteen’s service Many have criticized him for reducing the serious business of preaching biblical doctrine to simply putting on a show Yet, Osteen’s popularity continues to grow He has been featured on 60 Minutes, Larry King Live, Good Morning America, and other major network shows as well as in countless magazine and newspaper articles Opening Case Questions: Explain the dyadic relationship between Pastor Osteen and his followers and how this affects the way he is perceived What leadership action/decision by Pastor Osteen might create in-groups and out-groups at Lakewood Church? What leadership qualities does Pastor Osteen possess, and how have those qualities affected the level of teamwork between church leaders and followers? Describe the quality of the LMX relationship between Osteen and his leadership team and how this has in turn influenced their ability to counsel and minister to church members If there were some concerns that Osteen’s staff/ ministers were not meeting the needs of church members in the one-on-one counseling sessions, how should Pastor Osteen conduct an effective feedback session to ensure greater success? Can you answer any of these questions? You’ll find answers to these questions and learn more about Pastor Osteen and his leadership at the Lakewood Church throughout the chapter To learn more about Pastor Osteen and the Lakewood Church, visit the church’s Web site at http://www lakewood.cc n this chapter, you will explore the intricate nature of dyadic relationships We will discuss the evolution of dyadic theory, including the vertical dyadic linkage (VDL) theory and leader–member exchange (LMX) theory Then we will turn our attention to followership, an often ignored but relevant component of effective leadership The last section of the chapter covers delegation, including a model that can help you develop your delegation skills I 239 240 Part Team Leadership Evolution of the Dyadic Theory Most of the early theory and research on leadership has focused on leaders and not paid much attention to followers However, it is evident that good or effective leadership is in part due to good relationships between leaders and followers Relationship-based approaches to leadership theory have been in development over the past 25 years, and they continue to evolve Each unique association between a leader and a follower is called a dyad For our purposes, dyadic refers to the individualized relationship between a leader and each follower in a work unit Dyadic theorists focus on the development and effects of separate dyadic relationships between leaders and followers Dyadic theory is an approach to leadership that attempts to explain why leaders vary their behavior with different followers The dyadic approach concentrates on the heterogeneity of dyadic relationships, arguing that a single leader will form different relationships with different followers For instance, if we were to sample the opinions of different followers about one leader, they would reveal different dyadic relationships One group of followers may characterize their relationship with the leader in positive terms, while another group characterizes their relationship with the same leader in negative terms A central theme in dyadic leadership is the notion of “support for self-worth” that leaders provide to followers, and the return performance that followers provide to leaders Support for self-worth is defined as a leader’s support for a follower’s actions and ideas; building the follower’s confidence in his or her ability, integrity, and motivation; and paying attention to the follower’s feelings and needs Opening Case A P P L I C A T I O N Explain the dyadic relationship between Pastor Osteen and his followers and how this affects the way he is perceived The nature of the dyadic relationship between Pastor Osteen and his followers will influence how he treats each member The inner circle consists of the Osteen family and a team of 4,000 volunteers Also, Pastor Osteen is very close with the music director and the songwriter, two individuals who are instrumental in setting the mood prior to Pastor Osteen’s grand appearance during each service There is no evidence that he treats the members of his inner circle of leadership differently than other members of the church Because of Osteen’s charismatic personality, each church member feels like he or she has a positive, one-on-one relationship with him This feeling could be part of the reason why the church is experiencing such phenomenal growth Learning Outcome List the four stages of development of the dyadic approach As shown in Exhibit 7.1, the four stages of evolution in the dyadic approach are vertical dyadic linkage theory (VDL), leader–member exchange theory (LMX), team building, and systems and networks theory The first evolutionary stage (VDL) is the awareness of a relationship between a leader and a follower, rather than between a leader and a group of followers The second stage (LMX) proposes that the quality of the relationship between a leader and a follower is an important determinant of how each follower will be treated The third stage (team building) explores the relationship between the leader and the followers as a team concept rather than as a dyad, and the fourth stage (systems and networks) examines relationships at a much broader scale involving multiple levels and structural units within the organization The four evolutionary stages of dyadic theory are presented separately Chapter EXHIBIT 7.1 Leader–Follower Relations Dyadic Approach: Stages of Development Individualized leader– follower interactions creating in-groups and out-groups Vertical Dyadic Linkage (VDL) Theory Focus is on the quality of each dyad and its effects on organizational outcomes over time Leader–Member Exchange (LMX) Learning Outcome Team Building Leaders can aspire to build positive relationships with all followers, not just a few special individuals Systems and Networks Creating positive dyadic relationships across traditional boundaries to include a larger network of participants Define the two kinds of relationships that can occur among leaders and followers under the vertical dyadic linkage model Vertical Dyadic Linkage (VDL) Theory Before we begin, determine the dyadic relationship with your manager by completing Self-Assessment S E L F - A S S E S S M E N T Dyadic Relationship with Your Manager Select a present or past manager and answer each question describing your relationship using the following scale: I get along well with my manager When I interact with my manager, our conversation is often relationship-oriented (we talk on a personal level), rather than just task-oriented (we talk only about the job) –— Is descriptive of our relationship –— –— –— Is not descriptive of our relationship I have quick, easy access to talk with my manager anytime I want to I can influence my manager to get things done my way—-to get what I want 241 242 Part Team Leadership (Self-Assessment continued) We have a loyal, trusting relationship We look out for each other’s interest 10 My manager gives me rewards (raises and other perks) in excess of the minimum My manager understands my job and the problems that I face; he or she appreciates the work I Add up the numbers on lines through 10 and place your score here and on the continuum below My manager recognizes my potential and gives me opportunities to grow on the job 10 –— In-group My manager listens carefully to what I have to say and seeks my advice The lower your score, the more characteristic your relationship is of the in-group Read on to better understand the in-group and the out-group My manager gives me good performance evaluations 20 –— 30 –— 40 –— 50 Out-group The vertical dyad approach is an evolutionary phase from individualized leadership research Early research on individualized leadership focused on the traditional average leadership style (ALS) approach, in which a leader applies the same style of leadership toward a group as a whole.4 The perception is that the leader/superior treats everyone the same However, others describe another approach whereby the leader treats his or her followers differently It is called the vertical dyad linkage approach This is essentially a dyads-within-dyads view of leadership.5 VDL describes a situation whereby a leader forms dyadic in-group relationships with some followers and dyadic out-group relationships with other followers Therefore, vertical dyadic linkage (VDL) theory examines how leaders form one-on-one relationships with followers, and how these often create in-groups and out-groups within the leader’s work unit Central to VDL theory is the notion of “support for self-worth” that one individual provides for another A leader provides support for feelings of self-worth to a follower.6 For example, a leader may provide closer attention, guidance, feedback, and consideration to a follower The follower in turn renders exceptional performance to the leader—for example, a follower performing above standards and always willing to go the extra mile for the leader Studies have revealed that relationships developed in these dyads may occur at a formal or informal level, whereby some dyads are linked to assigned work groups and others are independent of formal work groups Also, a leader may link (one-on-one) with many individuals, or only a few individuals, and not others This selective association or differentiation by leaders with subordinates leads to in-groups and out-groups that tend to remain stable over time.7 These relationships affect the types of power and influence tactics leaders use The in-group includes followers with strong social ties to their leader in a supportive relationship characterized by high mutual trust, respect, loyalty, and influence Leaders primarily use expert, referent, and reward power to influence members of the in-group The out-group includes followers with few or no social ties to their leader, in a strictly task-centered relationship characterized by low exchange and top-down influence Leaders mostly use reward, as well as legitimate and coercive power, to influence out-group members (These types of power were discussed in more detail in Chapter 4.) To satisfy the terms of the exchange relationship, out-group followers need only comply with formal role requirements (such as duties, rules, standard procedures, and legitimate direction Chapter Leader–Follower Relations 243 from the leader) As long as such compliance is forthcoming, the out-group follower receives the standard benefits for the job (such as a salary) and no more.8 Opening Case A P P L I C A T I O N What leadership action/decision by Pastor Osteen might create in-groups and out-groups at Lakewood Church? It is said that Pastor Osteen does not perform weddings or funerals and that he avoids sickbeds and does not personal counseling He decided to delegate these needs to ministers the church employs If Pastor Osteen were to suddenly start performing these services for some members and not for others, it would certainly give the impression of him favoring some members over others, and this would likely create in-groups and out-groups within the church Members of the in-group are invited to participate in important decision making, are given added responsibility, and have greater access to the leader Members of the out-group are managed according to the requirements of the employment contract They receive little inspiration, encouragement, or recognition In terms of influence and support, in-group members experience greater support and positive influence from the leader, while out-group members tend not to experience positive relationships and influence The in-group versus out-group status also reveals an element of reciprocity or exchange in the relationship The leader grants special favors to in-group members in exchange for their loyalty, commitment, and outstanding performance This creates mutual reinforcement based on common needs and interests Ultimately, these formations create stronger social ties within the groups as well as intergroup biases between the groups Thus, individuals will be more likely to share with members of their own group (in-group) than with members of other groups (out-groups).9 Applying the Concept In-Groups versus Out-Groups From each of the following statements from a subordinate, identify the group to which he or she belongs Write the appropriate letter in the blank before each item a in-group b out-group My boss and I are similar in a lot of ways When I am not sure what is going on, I can count on my boss to tell me the truth even if it will hurt my feelings When I have a major problem at work or in my personal life, my boss would only that which is required of him or her as my manager without going out of his or her way As far as my feelings toward my boss go, we relate to each other strictly along professional lines and work I seldom have any direct contact with my boss unless something is wrong with the way I have done my job Leader–Member Exchange (LMX) Theory The next evolutionary stage in the dyadic approach is the LMX theory Face-to-face leader–member interaction plays a critical role in organizational life Unfortunately, Work Application Recall a work unit or organization you worked at that had both in-groups and outgroups Describe some of the ways in which the manager’s behavior and actions toward in-group and out-group members varied 244 Part Team Leadership such exchanges can also be a leading cause of employee distress The underlying assumption of LMX theory is that leaders or superiors have limited amounts of social, personal, and organizational resources (such as energy, time, attention, and discretion), and as a result tend to distribute them among followers selectively.10 Leaders not interact with all followers equally, which ultimately results in the formation of LMXs that vary in quality In high-quality LMX relationships, followers tend to receive better social support, more resources, and more guidance for career development The relationship is characterized by greater follower input in decision making and greater negotiating latitude Low-quality LMX relationships are characterized by less support, more formal supervision, and little or no involvement in decision making.11 Therefore, leader–member exchange (LMX) is defined as the quality of the exchange relationship between an employee and his or her superior.12 LMX theory and research offer an alternative way of examining organizational leadership, arguing that the quality of the social exchange between a leader and a follower would be more predictive of follower performance than traits or behaviors of superiors Ethical Dilemma LMX at Work Leader–member exchange theory states that in each work group some employees belong to the in-group and others belong to the out-group Think about your present or past employment Can you identify members of the in-group and the out-group? Which group were you in? Is it ethical to exclude employees from the in-group? Do you think people in the in-group tend to think exclusion is ethical and those in the out-group tend to think it is unethical? Is your answer to question based on whether you were a member of the ingroup or the out-group? Is it possible for all employees to be in the in-group? Should managers work to overcome LMX theory by including all employees in the in-group? Learning Outcome Describe the main focus of team building from a Leader–Follower perspective Team Building Given the increasingly complex and uncertain environment in which organizations find themselves, many have responded by using teams as their fundamental unit of organizational design in an effort to decentralize decision making and respond more effectively to external opportunities and threats.13 There is no question that team dynamics does influence both task performance and the quality of interpersonal relations.14 Therefore, team leadership involves a primary concern to motivate a group of individuals to work together to achieve a common objective, Chapter Leader–Follower Relations while alleviating any conflicts or obstacles that may arise while striving toward that objective.15 The emphasis is on forming relationships with all group members, not just with a few special individuals Effective leaders know that while it is not possible to treat all followers in exactly the same way, it is important that each person perceive that he or she is an important and respected member of the team rather than a non-entity For instance, not every employee may desire greater responsibility, but each should feel that there is equal opportunity based on competence rather than on being part of some in-group in the organization Leader–member exchange relationships can result in greater teamwork, because employees pursue cooperation with other team members as a way to reciprocate to the leader who desires such behavior.16 Therefore, workplace social exchanges between individual employees, work groups, and managers are critical to team building The concept of social capital is used to describe group members’ social relationships within and outside their groups and how these relationships affect group effectiveness.17 As a result, some see team building as a multilevel social exchange concept wherein the interface of leadership and team processes is quite evident.18 Opening Case A P P L I C A T I O N What leadership qualities does Pastor Osteen possess, and how have those qualities affected the level of teamwork between church leaders and followers? Pastor Osteen is described as a charming person with a smile that captivates everyone he encounters He is an effective communicator Some have called him the “smiling preacher.” Osteen’s friendly personality and upbeat message of self-help reach everyone in a personal way As Osteen puts it, “I don’t condemn; I don’t believe in being judgmental.” He is obviously a very people-oriented leader Studies have shown that when leaders are trained to develop and nurture highquality relationships with all of their followers, the results on follower performance are dramatic Followers who feel they have developed a positive one-on-one relationship with the leader tend to exhibit higher productivity and performance gains As these relationships mature, the entire work group becomes more cohesive, and the payoffs are evident to all participants In some sense, partnership building enables a leader to meet both the personal and work-related needs of each group member, one at a time Through the leader’s support, encouragement, and training, the followers feel a sense of self-worth, appreciation, and value for their work, and they respond with high performance The concept of leading teams is covered in detail in Chapter Learning Outcome Discuss the focus of the systems and networks approach from a Leader–Follower perspective Systems and Networks Across all sectors of our economy, there is a noticeable trend of organizations seeking and getting involved in a variety of collaborative arrangements (such as partnerships, consortia, alliances, and networks) for the purposes of entering new markets and gaining innovations or new products By collaborating, organizations hope to exchange strengths (such as skills, capabilities, knowledge, and 245 246 Part Team Leadership resources) with others, which will allow all partners to develop timely, innovative, synergistic solutions to complex problems they could not address on their own From a network perspective, the focus is on relations among actors, whether they are individuals, work units, or organizations The actors are embedded within networks of interconnected relationships that provide opportunities and constraints on behavior.19 Effective LMX at this level would determine the extent to which individual participants are able to draw on their group ties and, at the same time, transcend those ties to act collectively A systems-oriented perspective focuses on how the quality of the LMX relationship affects followers at the interpersonal, group, and organizational levels For instance, studies have found that the quality of LMX strongly influences subordinates’ communication satisfaction at the interpersonal (personal feedback and supervisory communication), group (coworker exchange and organizational integration in the workgroup), and organizational (corporate communications and communications climate) levels.20,21 Proponents of the systems and networks view contend that leader relationships are not limited to followers, but include peers, customers, suppliers, and other relevant stakeholders in the collectives of workgroups and organization-wide networks The organization is viewed as a system of interrelated parts To be effective, groups need to manage “boundary-spanning” relationships with other groups and external members in their organization in order to gain access to information and political resources Accomplishing this outcome requires effective leadership Today, organizations are structured along functional, divisional, product, customer, and geographic lines Research on group dynamics and culture does reveal that such organizational structures also affect employee cognitive structures In other words, these structures form departmental boundaries that create stronger social ties within the group as well as intergroup biases between the groups Individuals and groups are connected to certain people (and not to others), and this pattern of connection creates a network of interdependent social exchanges wherein certain people become trusted exchange partners who can be called upon for resources and support.22 As a result, individuals will be more inclined to align or associate with members of their own functional group (in-group) than with members of other functional groups (out-groups) Such alliance networks may provide members such benefits as access to knowledge, information, referrals, and career opportunities.23,24 However, it should also be noted that organizational group boundaries create actual and perceived difficulties in integrating and coordinating organizational activities A study comparing perceptual sharing to actual sharing between employees revealed that individuals understated the extent of their sharing with out-group members and overstated their sharing with in-group members Therefore, there is a need for groups to more actively manage their cooperation and coordination with other organizational units Leaders must create processes and networks that bring all workers (across functional lines) together to talk to one another, listen to one another’s stories, and reflect together Developing relationships of trust, where people from various backgrounds, disciplines, and hierarchies talk to one another, would no doubt avoid the polarization that dominates organizations characterized by in-groups and out-groups.25 Cisco Systems is a leading provider of networking technologies that optimize collaborations within and between organizations The way Cisco sees it, collaboration across functions, geographies, and corporate boundaries is imperative and the way of the future.26 Chapter Leader–Follower Relations Applying the Concept Stages of Development of the Dyadic Approach Which stage is described by the following statements? Write the appropriate letter in the blank before each item a vertical dyadic linkage theory b leader–member exchange theory c team building d systems and networks A dyadic approach that focuses on creating positive dyadic relationships across traditional boundaries to include more participants A hierarchical relationship in which leader–follower dyads develop, and the emphasis is on the quality of each relationship and its effects on organizational outcomes over time A dyadic approach that encourages leaders to aspire to having positive relationships with all followers, not just a few special individuals A relationship in which leader–follower interactions lead to the creation of in-groups and out-groups Leader–Member Exchange Theory As defined earlier, leadership is the ability to influence others to contribute toward the achievement of organizational goals Leader–member exchange is one theory that examines how leaders influence member behaviors According to this theory, leaders form high-quality social exchanges (based on trust and liking) with some members and low-quality economic exchanges with others that not extend beyond the employment contract.27,28 The quality of LMX affects employees’ work ethics, productivity, satisfaction, and perceptions There is a sense among followers in the exchange relationship to reciprocate their leader’s trust and liking through “citizenship behaviors” and excellent performance Studies that have used leader– member exchange theory to examine the effects of the employee–supervisor relationship on important job-related outcomes have come to the same conclusion: Employees who perceive themselves to be in supportive relationships with their supervisors tend to have higher performance, job satisfaction, and organizational commitment.29,30 For an expanded discussion of the theory, this section will examine the following: the influence of LMX quality on follower behavior, the three-stage process for developing positive LMX relations, factors that determine LMX quality, effective leader–follower feedback, limitations of LMX theory application, and bias in LMX with employee career implications The Influence of LMX on Follower Behavior The underlying assumption of LMX is that leaders not interact with all followers equally, which ultimately results in the formation of leader–member exchange relations that vary in quality Followers with strong social ties to the leader (high LMX) are said to belong to the in-group while those with weak social ties to the leader (low LMX) are said to belong to the out-group As revealed earlier, being a member of the in-group puts you in a very favorable position For example, in-group followers routinely receive higher performance ratings than out-group followers; outgroup followers routinely show higher levels of turnover than in-group followers; and, finally, when asked to evaluate organizational climate, in-group followers give more positive ratings than out-group followers 247 ... this section apply in your particular situation 25 2 Part Team Leadership Exhibit 7 .2 presents 12 guidelines for effective leader feedback It should be noted that these 12 guidelines are not in... order for supplies; send it to the purchas- ing department with a copy put in my in-basket each Friday by 2: 00 (report authority) 26 7 26 8 Part Team Leadership • Fill out and sign a purchase order... the leadership of their pastor Chapter Leader–Follower Relations 24 9 Now that you understand LMX, complete Self-Assessment S E L F - A S S E S S M E N T In-Group and Out-Group Based on Self-Assessment