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  1. 1. Robbins & JudgeOrganizational Behavior13th Edition Contemporary Issues in Leadership Contemporary Issues in Leadership Bob Stretch Southwestern College© 2009 Prentice-Hall Inc. All rights reserved. 13-1
  2. 2. Chapter Learning Objectives Chapter Learning Objectives After studying this chapter, you should be able to: – Show how framing influences leadership effectiveness. – Define charismatic leadership and show how it influences followers. – Contrast transformational with transactional leadership and discuss how transformational leadership works. – Define authentic leadership and show why ethics and trust are vital to effective leadership. – Identify the three types of trust. – Demonstrate the importance of mentoring, self-leadership, and virtual leadership to our understanding of leadership. – Identify when leadership may not be necessary. – Explain how to find and create effective leaders. – Assess whether charismatic and transformational leadership generalizes across cultures.© 2009 Prentice-Hall Inc. All rights reserved. 13-2
  3. 3. Inspirational Approaches to Leadership Inspirational Approaches to Leadership The focus is leader as communicator Framing: – A way of communicating that shapes meaning – Selective highlighting of facts and events – Ignored in traditional leadership studies Two contemporary leadership theories: – Charismatic Leadership – Transformational Leadership© 2009 Prentice-Hall Inc. All rights reserved. 13-3
  4. 4. Charismatic Leadership Charismatic Leadership House’s Charismatic Leadership Theory: – Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors Four characteristics of charismatic leaders: – Have a vision – Are willing to take personal risks to achieve the vision – Are sensitive to follower needs – Exhibit behaviors that are out of the ordinary Traits and personality are related to charisma People can be trained to exhibit charismatic behaviors E X H I B I T 13-1 E X H I B I T 13-1© 2009 Prentice-Hall Inc. All rights reserved. 13-4
  5. 5. How Charismatic Leaders Influence Followers How Charismatic Leaders Influence Followers A four-step process: 1. Leader articulates an attractive vision • Vision Statement: A formal, long-term strategy to attain goals • Links past, present, and future 1. Leader communicates high performance expectations and confidence in follower ability 2. Leader conveys a new set of values by setting an example 3. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision© 2009 Prentice-Hall Inc. All rights reserved. 13-5
  6. 6. Charismatic Leadership Issues Charismatic Leadership Issues Importance of vision – Must be inspirational, value-centered, realizable, and given with superior imagery and articulation Charismatic effectiveness and situation – Charisma works best when: • The follower’s task has an ideological component • There is a lot of stress and uncertainty in the environment • The leader is at the upper level of the organization • Followers have low self-esteem and self-worth Dark Side of Charisma – Ego-driven charismatics allow their self-interest and personal goals to override the organization’s goals© 2009 Prentice-Hall Inc. All rights reserved. 13-6
  7. 7. Beyond Charisma: Level-5 Leaders Beyond Charisma: Level-5 Leaders Very effective leaders who possess the four typical leadership traits – Individual competency – Team skills – Managerial competence – Ability to stimulate others to high performance Plus one critical new trait… – A blend of personal humility and professional will – Personal ego needs are focused toward building a great company – Take responsibility for failures and give credit to others for successes© 2009 Prentice-Hall Inc. All rights reserved. 13-7
  8. 8. Transactional & Transformational Leadership Transactional & Transformational Leadership Transactional Leaders – Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements Transformational Leaders – Inspire followers to transcend their own self-interests for the good of the organization; they can have a profound and extraordinary effect on followers Not opposing, but complementary, approaches to leadership – Great transformational leaders must also be transactional; only one type is not enough for success© 2009 Prentice-Hall Inc. All rights reserved. 13-8
  9. 9. Characteristics of the Two Types of LeadersCharacteristics of the Two Types of Leaders Transactional Transformational Contingent Reward:  Idealized Influence: – Contracts exchange of rewards – Provides vision and sense of for effort, promises rewards for mission, instills pride, gains respect good performance, recognizes and trust accomplishments  Inspiration: Management by Exception: – Communicates high expectations, – Active: Watches and searches uses symbols to focus efforts, for deviations from rules and expresses important issues simply standards, takes corrective  Intellectual Stimulation: action – Promotes intelligence, rationality, – Passive: Intervenes only if and problem solving standards are not met Laissez-Faire:  Individualized Consideration: – Gives personal attention, coaches, – Abdicates responsibilities, advises avoids making decisions E X H I B I T 13-2 E X H I B I T 13-2 © 2009 Prentice-Hall Inc. All rights reserved. 13-9
  10. 10. Full Range of Leadership Model Full Range of Leadership Model Leadership styles listed from passive to very active Note the ineffective styles are mostly transactional It is all about influencing followers E X H I B I T 13-3 E X H I B I T 13-3© 2009 Prentice-Hall Inc. All rights reserved. 13-10
  11. 11. Issues with Transformational Leadership Issues with Transformational Leadership Basis for Action: – Transformational leadership works by encouraging followers to be more innovative and creative and by providing ambitious goals Evaluation Based on the Research: – This theory does show high correlations with desired outcomes – This style of leadership can be taught Transformational vs. Charismatic Leadership: – Similar concepts, but transformational leadership may be considered a broader concept than charisma. – Instrument-based testing shows the measures to be roughly equivalent© 2009 Prentice-Hall Inc. All rights reserved. 13-11
  12. 12. Authentic Leadership: Ethics and Trust Authentic Leadership: Ethics and Trust Authentic Leaders: – Ethical people who know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly – Primary quality is trust Build trust by: – Sharing information – Encouraging open communication – Sticking to their ideals Still a new topic; needs more research© 2009 Prentice-Hall Inc. All rights reserved. 13-12
  13. 13. Ethics, Trust, and Leadership Ethics, Trust, and Leadership Ethics touch on many leadership styles – As the moral leaders of organizations, CEOs must demonstrate high ethical standards – Socialized charismatic leadership: leaders who model ethical behaviors Trust: – The positive expectation that another person will not act opportunistically – Composed of a blend of familiarity and willingness to take a risk – Five key dimensions: integrity, competence, consistency, loyalty, and openness E X H I B I T 13-4 E X H I B I T 13-4© 2009 Prentice-Hall Inc. All rights reserved. 13-13
  14. 14. Five Key Dimensions of Trust Five Key Dimensions of Trust Integrity – Honesty and truthfulness Competence – An individual’s technical and interpersonal knowledge and skills Consistency – An individual’s reliability, predictability, and good judgment in handling situations Loyalty – The willingness to protect and save face for another person Openness – Reliance on the person to give you the full truth© 2009 Prentice-Hall Inc. All rights reserved. 13-14
  15. 15. Three Types of Trust Three Types of Trust  Deterrence-based Trust – Trust based on fear of reprisal if the trust is violated  Knowledge-based Trust – Trust based on behavioral predictability that comes from a history of interaction  Identification-based Trust – Trust based on a mutual understanding of one another’s intentions and appreciation of the other’s wants and desires© 2009 Prentice-Hall Inc. All rights reserved. 13-15
  16. 16. Basic Principles of Trust Basic Principles of Trust Mistrust drives out trust Trust begets trust Trust can be regained Mistrusting groups self- destruct Mistrust generally reduces productivity© 2009 Prentice-Hall Inc. All rights reserved. 13-16
  17. 17. Contemporary Leadership Roles: Mentoring Contemporary Leadership Roles: Mentoring Mentor: – A senior employee who sponsors and supports a less- experienced employee (a protégé) – Good teachers present ideas clearly, listen, and empathize – Two functions: • Career – Coaching, assisting, sponsoring • Psychosocial – Counseling, sharing, acting as a role model – Can be formal or informal – Mentors tend to select protégés who are similar to them in background: may restrict minorities and women© 2009 Prentice-Hall Inc. All rights reserved. 13-17
  18. 18. Contemporary Leadership Roles: Self-Leadership Contemporary Leadership Roles: Self-Leadership Self-Leadership – A set of processes through which individuals control their own behavior – Effective leaders (superleaders) help followers to lead themselves – Important in self-managed teams To engage in self-leadership: 1. Make a mental chart of your peers and colleagues 2. Focus on influence and not on control 3. Create opportunities; do not wait for them© 2009 Prentice-Hall Inc. All rights reserved. 13-18
  19. 19. Contemporary Leadership Roles: Online Leadership Contemporary Leadership Roles: Online Leadership Leadership at a Distance: Building Trust – The lack of face-to-face contact in electronic communications removes the nonverbal cues that support verbal interactions. – There is no supporting context to assist the receiver with interpretation of an electronic communication. – The structure and tone of electronic messages can strongly affect the response of receivers. – An individual’s verbal and written communications may not follow the same style. – Writing skills will likely become an extension of interpersonal skills.© 2009 Prentice-Hall Inc. All rights reserved. 13-19
  20. 20. A Challenge to the Leadership Construct A Challenge to the Leadership Construct Attribution Theory of Leadership – The idea that leadership is merely an attribution that people make about other individuals – Qualities attributed to leaders: • Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious. • Effective leaders are perceived as consistent and unwavering in their decisions. • Effective leaders project the appearance of being leaders.© 2009 Prentice-Hall Inc. All rights reserved. 13-20
  21. 21. Another Challenge to the Leadership Construct Another Challenge to the Leadership Construct Substitutes and Neutralizers for Leadership Source: Based on S. Kerr and J. M. Jermier, “Substitutes for Leadership: Their Meaning and Measurement,” Organizational Behavior and Human Relationship- Task- oriented oriented Defining Characteristics Leadership Leadership Individual Experience/training No effect on Substitutes for Professionalism Substitutes for Substitutes for Indifference to rewards Neutralizes Neutralizes Performance, December 1978, p. 378. Job Highly structured task No effect on Substitutes for Provides its own feedback No effect on Substitutes for Intrinsically satisfying Substitutes for No effect on Organization Explicit formalized goals No effect on Substitutes for Rigid rules and procedures No effect on Substitutes for Cohesive work groups Substitutes for Substitutes for E X H I B I T 13-5 E X H I B I T 13-5© 2009 Prentice-Hall Inc. All rights reserved. 13-21
  22. 22. Finding and Creating Effective Leaders Finding and Creating Effective Leaders Selection – Review specific requirements for the job – Use tests that identify personal traits associated with leadership, measure self-monitoring, and assess emotional intelligence – Conduct personal interviews to determine candidate’s fit with the job – Keep a list of potential candidates Training – Recognize that all people are not equally trainable – Teach skills that are necessary for employees to become effective leaders – Provide behavioral training to increase the development potential of nascent charismatic employees© 2009 Prentice-Hall Inc. All rights reserved. 13-22
  23. 23. Global Implications Global Implications Certain types of leadership behaviors work better in some cultures than in others Charismatic/Transformational Leadership – Seems to work across cultures – May be an “universal” aspect of leadership in its focus on: • Vision and foresight • Providing encouragement • Trustworthiness • Dynamic, positive, and proactive traits Globalization may be the cause of these common concerns – we may be able to train a “universal” manager, if that person is culturally sensitive!© 2009 Prentice-Hall Inc. All rights reserved. 13-23
  24. 24. Summary and Managerial Implications Summary and Managerial Implications Companies are looking for transformational leaders – even if they only “look the part” Transformational style crosses borders reasonably well Effective managers must build trust with those they lead Leadership selection and training are important to long-term success© 2009 Prentice-Hall Inc. All rights reserved. 13-24
  25. 25. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise,without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall