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Why study leadership drawing on empirical evidence?

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Evidence Based Mgmt: Decision making in organization based on the best empirical evidence available (Reduction of bad decisions and poor mgmt skills)

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EBM Process

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CYCLE: 1. Collect evidence: Scientific studiy 2. Aggregate evidence: Meta-analysis 3. Make evidence applicable: KL into Behavior 4. Demonstrate effectiveness: Evaluation

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How is knowledge generated?

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Systematic approach: - Intersubjectivity - Systematic selection of participants - Testable hypotheses - Transparent use of methods

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Emloyee's attitude (components)

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Loyalyty, commitment, perceived fairness, job satisfaction, trust in mgmt

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Positive employee's attitue

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commitment well-being

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Relation between leadership and sales performance

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- Laissez-fair style, no association - transformational and transactional leadership do - direct feedback enhances the effect of of tranformational leadership on sales performance

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Desruptive leadership and consequences

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Negative leadership behavior affects employees' mental and physical health

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Organizational consequences of bad leadership?

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Bad leadership leads to higher sickness absense level, limits creativity, consitent negative affect on job performance

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Definition Leadership

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Dubrin: Leadership is the process of influencing others to understand and agree about what needs to be done and how it can be done effectively. And the process of facilitating individual and collective efforts to accomplish the shared objectives Rosenstiehl: Leadership is goal directed influence on others

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Key Leadership Variables:

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Characteristics of: - Leader - Followers - Situation

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Measures of Leaderships Effectiveness

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- Objective measures: profit, sales etc - Subjective measures: rating von subordinates - Attitudes - Quality of group processes

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Relation between leadership and innovation

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- Leadership has an important impact on innovation - Transformational leadership is partly effective - It is a promising way to facilitate innovation in organizations

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Four main approaches in leadership theory

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- Personalitic Approach/Trait Theory - Behaviorial Style Approach - Situational/Contingency Approach - Power/Influence Approach

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Leadership vs. Management

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Leaders: - show their weaknesses selectively - rely heavily on intuition - practice through empathy - reveal their differences

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3 basic motives in personality/Trait Approach

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- Achievement - Power - Affiliation

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Big Five Model of Personality

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- Neuroticism - Extraversion - Openness to experience - Agreeableness - Conscientiousness

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Task related personality traits

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- Courage - Locus of control - Passion - Flexibility and adapptability - Emotional Intelligence

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Cognitive Factors and Leadership

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- Openess to experience - Farsightedness and conceptual thinking - Insights into people and and situations - Knowledge of the business/group task - Creativity

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Types of leadership behavior

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Ohio State Leadership Study Michigan Leadership Study

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Categories of Ohio?

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1. Consideration: Concern for people and interpersonal relationships. Friendly and supportive leader. 2. Initiating structure: Concern for accomplishing the tasks. Leader defines his own role, the role of the subordinates toward attainment of task goals

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Effects of consideration and initiating structure (Turnover rate)

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Consideration: Higher Turnover with less employees Initiating: Higher Turnover with more employees

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More implications ohio

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- Positive relationship between CONSIDERATION and subordinate satisfaction - INITIATING structure was not consistently related to subordinate satisfaction - Consideration and initiating structure had a weak positive correlation with leadership effectiveness

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Michigan Leadership Study - Three types of leadership behavior

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1. Task-oriented behavior: set high but realistic goals 2. Relations-oriented behavior: more supportive and helpful with subordinates 3. Participative leadership: use more group supervision instead of supervising every subordinate separately

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Relationship between leadership behavior and satisfaction/productivity

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Increases in relation-oriented leadership behavior usually results in higher subordinate satisfaction and productivity

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The high-high leader

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Effective leaders guide and facilitate the work to accomplish task objectives while at the same time maintaining cooperative relationships and teamwork

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leadership behavior taxonomies

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- high diversity among taxonomies. Differ in purpose. - Behavior constructs are formulated at differet levels of abstraction

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Factors that help to explain the lack of consistency of factor-based taxonomies

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- Various analytical procedures - Identity of repondents - Sample size - Initial expectations of the researchers

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Three Dimensional Model: 3 metacategories

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1. task-oriented behavior 2. relations-oriented behavior 3. change-oriented behavior

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Results of research

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- moderate support for categorical model - ategorical and dimensional model can be useful for describing the complex interrelationships among different types of leadership behavior

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specific task behaviors

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- short term planning - clarifying roles and objectives - monitoring operations and performance

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Specific relations behavior

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- Supporting - Developing - Recognizing

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supporting

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- core compenent of consideration and supportive leadership - helps to build and maintain effective interpersonal relationships Research results: - subordinates of supportive leaders are more satisfied with leader and job - weak positive effect on subordinate performance - higher job satisfaction and stress tolerance that turn to less absenteeism, fewer vacancies, and less alcoholism

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Developing

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- Practices to increase persons skills and facilitate job adjustment and career development - Subordinates: better job adjustment, greater self-confidence, faster career advancement - orga: higher employee commitment, higher performance Research results: - Skill developmet increase the satisfaction and performance

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Recognizing

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- Giving praise and showing appreciation - Strengthen desirable behavior and task commitment Research results: - Contingent reward behavior is positively related with subordinate satisfaction - Results for performance are not consistent - Praise by leader increase subordinate performance

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The nature of participative leadership

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Use of various decision procedures that allow other people some influence over the leader's decisions

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Potential benefits of participative leadership

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- higher decision quality - higher decision acceptance - more satisfaction with the decision process - development of decision making and participation skills

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Potential benefits depend on

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- participants - degree of influence of participants - aspects of decision situation

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Effects of participative leadership

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- Lack of consistent strong results - Possible reason for inconsistency: different types of methodology - Participative leadership sometimes results in higher satifaction, effort and performance and at other times it does not

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Limitation of participative research

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- Survey field studies: Measurement problems - Field experiments & Quasi Exp.: Temporary elation. Resentment of the "untreated" - Measure of participation consequences: insensitive criterion (satisfaction + performance)

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Normative Decision Model

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Initial results are promising, but more research is needed to test the extended version of the model

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Delegation Definition

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term to describe the variety and different forms of power sharing with individual subordinates

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Varieties and major aspects

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- Assignment of new and different tasks and responsibilities to subordinates - Amount of additional authority and discretion - Authority to take action and implement decision without prior approval - Frequency and nature of reporting requirements - Flow of performance information

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Potential advantages

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- Improvement of decision quality - Greater subordinate commitment to implement decisions effectively - Enrichment of subordinates's job: increses in satisfaction - Additional time for managers - Effective method of management development

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Reasons for lack of delegation

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- Personality aspects: Need for power and high achievement, insecurity, difficulty in forming relationship - Subordinate's characteristics: task expertise, shared objectives - Nature of the work: Highly interdependent jobs - Amount of authority possessed by the leader

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Researh on Consequences of Delegation

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- Less empirical research than on consultation - Amount of delegation is correlated with subordinate performance - Amount of delegation by top executives in 97 small businesses is related to their profitability and sales growth - Difficulty of determining causality More longitudinal experimental research is needed to investigate direction of causality and the facilitation conditions

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Psychological empowerment def

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term to describe how the intrinsic motivation and self-efficacy of people are influenced by leadership behavior, job characteristics, organization structure, own needs and values

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Definint elements of psychological empowerment (Spreitzer)

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1. Meaning 2. Self-determination 3. Self-efficacy 4. Impact

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Benefits of Empowerment

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- Stronger task commitment - Greater initiative in carrying out role responsibilities - Greater persistence in the face of obstacles and temporary setbacks - More innovation and learning - Stronger optimism about the eventual success of the work - higher job satisfaction - Stronger orga commitment - Less vacancy

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Costs of empowerment

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- Higher costs for selecting and training - Higher labour costs for skilled employees - Inconsistent service quality - Expensive giveaways and bad desicions by some employees - Customer feelings of inequity about unequal treatment - Opposition by middle managers who feel threatened - Conflicts from raising employees expectations

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Waterson: Effects of empowerment on overall performance

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- Inconclusive and mixed research results - Potential benefits are unlikely to occur unless conditions are favorable

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effectiveness of participative leadership

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Evidence points to effectiveness of participative leadership, but consistent strong evidence is lacking

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what tool to use for more effectiveness for managers?

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Managers are likely o be more effective if they use decision procedures that are appropriate for the situation (Model by Vroom & Yetton)

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Research on delegation

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Research on the consequences of using delegation is limited, but the findings suggest it can be very effective when used for appropriate tasks and carried out in a competent manner

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Uniform beliefs about what makes a leader effective:

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Visionary decisive dynamic dependable encouraging and positive excellence-oriented honest and trustworthy skilled administrator team integrator

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Leaders should NOT be

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loner irritable ruthless asocial non-explicit dictorial non-cooperative egocentric

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9 cultural dimension

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1. Unvertainty avoidance 2. Power distance 3. Institutional collectivism 4. In-group collectivism 5. Gender egalitarianism 6. Assertiveness 7. Future orientation 8. Performance orientation 9. Humane orientation

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The Hofstede Field Study

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The values that distinguished countries from each other could be grouped statistically into four (6) clusters Culture only exists by comparison. Country scores on the dimensions are relative ones: Societies are compared to other societies. Without making a comparison a country score is meaningless.

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The Hofstede Dimensions

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- Power Distance - Individualism vs. Collectivism - Masculinity vs. Femininity - Uncertainty avoidance index - Pragmatic vs. Normative (new) - Indulgence vs. Restraint (new)

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GLOBE: Dimensions beyond Hofstede

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- Institutional collectivism: encourage institional or societal collective action - In-group collectivism: people express pride, loyalty, and cohesiveness in their organization/family - Gender egalitarianism: minimize gender role differences and promotes gender equality - Assertiveness: people are determined assertive, confrontational, and aggressive in their social relationships

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Why transformational Leadership?

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- Meta analyses provide evidence for the significant positive relations with work-related attitudes - Recent investigations support the significant positive effect on objectively-measured performance - Integration of aspects of earlier theories, eg charisma, consideration, context - Preliminary evidence that it can be developed systematically

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3 Basic Leadership Styles?

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- Laissez-faire - Transctional - Transformational

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Characteristics Laissez-faire leadership

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- Leader is passive, does not set goals or clarify expectations - Leader partly denies leadership resposibility - Decisions are likely to get postponed - Leader grants a lot of freedom Mostly ineffictive but can work with highly skilled and motivated employees

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Management by Exception Passive

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- Leader makes decisions only when absolutly necessary - Leader waits for mistakes to occur before taking action

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Management by Exception Active

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- L monitors processes to make sure everything runs smoothly and without deviances/mistakes - L intervenes if he notices deviances from the optimal workflow/process

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contingent reward

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- Clarification of mutual expectations - Specification of individual goals based on organizational requirements and individual capabilities - Provision of rewards contingent upon performance This leadership dimension is an important basis for effective leadership, however on its own it does not facilitate extra effort and innovation

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Dimensions of Transformational Leadership

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- Inspirational Motivation - Intellectual Stimulation - Individualized Consideration - Indelized Influence

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Def Inspirational Motivation

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- L provides meaning and challenge to employees' work - gives employees a feeling of importance - Communicates expectations clearly demonstrates commitment to goals and the shared vision - fosters team spirit - displays enthusiasm and optimism - creates attractive visions of the future - openly recognizes and appreciates achievements

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Intellectual Stimulation

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- L questions assumptions and mainstream opinios - Reframes problems - Approaches reoccuring situations in new ways - encourages new ideas and creative problem soving - does not criticize individual mistakes in public - uses mistakes as learning opportunities

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Individualized consideration

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- L demonstrates acceptance of individual differences - Listens to and is aware of individual concerns - Pays special attention to individual needs for achievement and growth - Applies praise and reproach individually - Acts as a mentor and coach - Creates new learning opportunities along with a supportive climate

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Idealized Influence/Charisma

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- L is a role model - is consistent - is wiiling to take responsibilities - is persistent and determined - demonstrates high standards of ethical and moral conduct - does not ask more from employees than what he contributes himself

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Values/ethically-oriented leadership

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- Traditionally viewd as not part of (business) leaders' responsibility, sometimes even as opposing it - Preliminary evidence for positive relations with business success - Dominant constructs: Ethical leadership, authentic leadership, servand leadership (Research)

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Ethically-oriented Leadership

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- Consideration of various stakeholders' legitimate interests - Proactive influence on followers' ethical behavior by 1. communicating ethical values 2. role modeling ethical behavior 3. using the reward system to hold followers accountable for ethical conduct

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Ethical leadership predicts....

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- followers' satisfaction with the leader - perceived leader effectiveness - willingness to exert extra effort on the job - willingness to report problems to management beyond the effects of idealized influence (Research)

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Authentic Leadership

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Authentic leaders are guided by sound moral convictions and act in concordance with their deeply held values, even under pressure

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4 components of authentic leadership

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1. Balanced Processing: objectively analyzes all relevat data before making decisions 2. Internalized Moral Perspective: Leader is guided by internal moral standards and values and acts according to these 3. Relational Transparency: Leader presents his authentic self to others 4. Self-awareness: Demonstrated understanding of ones strengths and weaknesses

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Empirical results on authentic leadership

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- Significant positive relations with employee job satisfaction, commitment and team effectiveness - Significant positive relation with supervisor-rated group-level citizenship behaviors and group performance, even when controlling for transformational leadership

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Servant leadership

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- places the good of those led over the self-interest of the leader, emphasizing leader behaviors that focus on follower development and de-emphasizing glorification of the leader - attenuating the leaders hubris, focusing on followers development and taking a comprehensive multiple stakeholder perspective

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Similarities authentic and ethical leadership

answer

- Concern for others - Ethical decision making - Integrity - Role modeling

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Differences authentic and ethical leadership

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- Ethical leaders emphasize moral management (more transactional) - Authentic leaders emphasize authenticity and self-awareness

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Conception of Power and Authority

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Power: involves the capacity of one party to influence another party and control resources Anthority: involves the rights, prerogatives, obligations, duties associated with particular positions in an organisation or social system

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Manipulation def

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- Influencing somebody to one's own advantage - without recognizing the other's advantage - by using non-transparant means of influence - and by conveying the impression that the other person has made a free decision

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What is Machiavellism

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- People are self-centered and self-serving - Thus leaders must be strong, rughless and cynical Machiavellians: People who ruthlessly manipulate others, who practice deception and bluff for personal gain

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High Mach person characteristics

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- approach situations logically and thoughtfully - ability to lie to achieve personal goals - reluctance to be swayed by loyalty, friendships, past promises or the opinions of others - skilled at influencing others

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Sources of Power in an organisation

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- Position power - Personal power - Power from ownership - Control of key resources - Capitalizing upon opportunity - Managing critical problems - Being close to power

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Bases of Legitimation

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- Source of authority - Competence perceived - Identification with group/organization

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Consequences of Legitimation

answer

- Innovative impulses - Shift of group norms possible

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Guidelines for Using Legitimate Authority

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- Make polite, clear requests - Explain the reasons for a request - Don't exceed your scope of authority - Verify authority if necessary - Follow proper channels - Follow up to verify compliance - Insist on compliance if appropriate

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Guidelines for using reward power

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- Offer the type of rewards that people desire - Offer rewards that are fair and ethical - Don't promise more than you can deliver - Explain the criteria for giving rewards and keep it simple - Provide rewards as promised if requirements are met - Use rewards symbolically (not manipulative)

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Guidelines for Acquiring and Maintaining Referent Power

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- Show acceptance and positive regard - Act supportive and helpful - Use sincere forms of ingratiation - Defend and back up people when appropriate - Do unsolicited favors - Make self-sacrifices to show concern - Keep promises

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Guidelines for Using Expert Power

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- Explain the reason for a request or proposal and why it is important - Provide evidence that a proposal will be successful - Don't make rash, careless or inconsistent statements - Don't exaggerate or misrepresent the facts - Listen seriously to the person's concerns and suggestions - Act confidently and decisively in a crisis

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Social Exchange Theory

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How Power is acquired - Exchange of benefits or favors - Not only materialistic, but also psychological benefits - Status and power are exchanged for potential contributions to group - Idiosyncrasy credit - Innovation is not only accepted but expected - Innovation as adouble edged sword

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What is empowerment

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To share power in order to gain power

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Def. organizational politics (micro politics)

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Informal approaches to gaining power through means other than merit or luck

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Definition: Motivating the Workforce

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Motivation to work refers to forces within an individual that account for the level, direction and persistence of effort expended at work

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4 Content Theories

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- Maslows hiercrchy of needs - Alderfers ERG - McCleelands acquired needs - Herzbergs two-factor

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3 Process theories?

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- Equity theory - Expectancy theory - Goal setting theory

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Equity Theory: Social Comparison

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I give to her = She gives me I get from her = She gets from me

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Forms of Inequity

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- Negative inequity - Positive inequity

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S M A R T C H Goals

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S pecific M easurable A ttainable R ealistic T imely CH allenging

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Specific and challenging goals

answer

- direct behavior - mobilize energies - provide basis for feedback and evaluation - enhance productivity

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Benefit of Fiedlers Contingency Theory

answer

Advancement - Focused on situational factors - Stimulated much research

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Problems with Fiedlers Contingency Theory

answer

- Empirical results inconsistent - LPC measure questionable - Theoretical foundation lacking - Leader behavior is treated as a trait - Conclusions ethically questionable

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Benefit Hersey & Blanchard Contingency Approach

answer

- Builds on Blake & Moutons two-dimensional approach - Easy to understand and to apply - Broadly used in management training

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Problems with H&B CA

answer

- Concept of "maturity" collapses motivation and abilities - Simplistic concept of motivation

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PGT: Leadership Style

answer

- Directive - Supportive (Participative, Achievement-oriented)

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Benefits of PGT

answer

- Conceptual framework to identify situational variables and to act accordingly - Systematic approach, easy to apply - Founded in motivational psychology (Vroom VIE model)

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Problems with PGT

answer

- Based on VIE model, only - Important aspects of human motivation are disregarded - Empirical results are inconclusive

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2 components of Leadership Substitutes Theory

answer

- Substitues - Neutralizers

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YUKL Multiple Linkage Model

answer

- Direct, immediate effects - Direct, delayed effects - Indirect effects

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General Benefits of Contingency Models

answer

- Drew the attention on situational moderators of effective leadership - Advanced theorizing and empirical research - Economically successful in management trainings

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General Problems with Contingency Models

answer

- Leader traits mostly neglected - Mostly narrow focus on instrumental, supportive, and participative leadership - Intervening variables (eg the coweroker) not explicitly discussed, restricted to cognitive aspects, or very broad (YUKL) - Theoretical basis is rather narrow - Empirical support mostly inconclusive - Applicability impaired because models are mostly overly simplistic

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How does a new leadership model should look like?

answer

YUKL: What may be needed is a theory with both universal elements (general principles) and situational elements (guidelines to help identify desirable behaviors for a particular type of situation)

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Underlying idea of Empowerment (YUKL)

answer

Psychological empowerment describes how the intrinsic motivation and self-efficacy of people are influenced by leadership behavior, job characteristics, organisation struture, and their own need and values

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Underlying belief of motivation (Nicholson)

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- Everyone has motivational energy - The energy is often blocked in the workplace - Removeing blockages requires employee participation

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How to motivate people who are not

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- Find out "how the person ticks" through informal conversation - Put together a list of possible outcomes and allow reframing goals - Formal meetings

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Typical volitional Strategies (KUHL)

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- Motivation control (positive fantasies) - Emotion control (attaining a positive mood) - Attention control (focusing attention)

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Relationship ability and behavior

answer

Abilities and skills are basic ingredients of behavior

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Motivation models focus on ability

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- Expetancy. value approaches - Self-efficacy theory - Theory of planned behavior

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3C model for situational Leadership steps

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1. Diagnose the Situation of the Employee 2. Find appropriate measures

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What is ambidextrous leadership?

answer

Combine Efficiency and Innovation

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Debate about the definition of leadership

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- Specialized role or shared leadership - Type of influence process - Purpose of influence attempts - Influence based on reason or emotions - Leadership versus management

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YUKL position towards def leadership

answer

These defining differences are not suited as a basis for a definition of leadership

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Antonakis Actuality Ascription Trait Theory of Leadership

answer

Leadership can work from far and near, when far, observers ascribe skills to leaders via two cognitive heuristic processes

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What are the 2 heuristic processes?

answer

- Attributional: due to performance cue effects, incumbency, or other factors that may or may not be causally traceable to the leader - Inferential: due to markers regarding what the leader is like that may or may not matter for performance

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Toxic Leadership characteristics

answer

- Incompetent - Rigid - Intemperate - Callous - Corrupt - Insular - Evil

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