Summary of Human Resource Management Review 13 (2003) 127–152

1. Wei Liu, David P. Lepak, Riki Takeuchi, Henry P. Sims, Jr.
Prepared By Burcu Tanriverdi
Mech. Eng., M.B.A.
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2.  Introduction
 Approaches to Leadership
 About Employment Relationships
 Strategic Value and Uniqueness of skills
 Leadership Styles
 Leadership Demands
 Discussion
 Summary
 Future Researches
 Conclusion 4/4/2013

3.  Inany given work environment, there are
different groups of employees. Different
groups of employees, in turn, require different
methods of human resources management in
order to create an efficient and effective
workplace.
 The leadership plays a critical role on this
effective management.
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4.  Based on knowledge, skills, abilities, and
expertise, the contributions that employees
offer to a firm’s success differs.
Therefore, managers may use different
human resource management practices in the
workplace.
 Thispaper explores different leadership styles
that can potentially be implemented by
managers in order to increase and improve
employee performance.
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5. 1 LEADER
LEADERSHIP RELATIONSHIP
3
BETWEEN TWO
2 FOLLOWER
 Leadership effectiveness, degree to which the leader
efficiently motivates employees to accomplish
organization’s tasks and fulfill the expectations of the
employees and the organization.
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6.  Least Preferred Coworker(LPC)
Contingency Theory
 Path-Goal Theory
 Leadership Substitute Theory
 Normative Decision Theory
 Multiple Linkage Model
 Leader-Member Exchange(LMX) Theory
 Situational Leadership Theory
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7.  Fiedler identified the a LPC scoring for
leaders by asking them first to think of a
person with which they worked that they
would like least to work with, and score
them with positive &negative factors.
 A high LPC leader generally scores the
other person as positive and a low LPC
leader scores them as negative.
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8.  High LPC leaders tend to have close and
positive relationships and act in a supportive
way.
 Low LPC leaders put the task first and will
turn to relationships only when they are
satisfied with how the work is going.
 Leader effectiveness depends on the leader
as well as the situation. A favorable situation
and work environment will make way for
effective leadership.
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9.  Leaders, to be effective, engage in
behaviors that complement subordinates’
environment and abilities in a manner that
compensates for deficiencies and is
instrumental to subordinates satisfaction
and individual and work unit performance.
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10. leader
The theory's a strong Relationship behaviors
focus empirical between subordinates'
support satisfaction
& performance
 The substitutes for leadership theory suggests
that characteristics of the organization, the
task, and subordinates may substitute for or
negate the effects of leadership, thus weakening
observed relationships between leader behaviors
and important organizational outcomes.
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11.  Leaders are more effective if they make
decisions that are tailored to a specific
situation (similar to contingency model)
 This model identifies five styles along a
continuum ranging from autocratic to
consultative to group-based.
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12.  The leader influences variables to make
the situation more favorable, to develop
subordinates to improve performance of
team.
 Performance of a work unit depends on
multiple variables; subordinate effort &
ability, organization of work (task
structure), teamwork &
cooperation, availability of resources etc
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13.  Leaders
don’t typically interact with all
employees in the same way
 Describes how leaders in groups maintain
their position through a series of tacit
exchange agreements with their members.
 Three stages of the LMX process are,
Role taking –Role making- Routinization
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14.  Leaders adjust their relationships with
followers to increase likelihood of success
 Model rests on two fundamental concepts;
leadership
style(telling, selling, participating, delegatin
g) and the individual or group's maturity
level(from M1 low-to M4 high).
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15.  Rousseau's(1995) four different types of
employment relationships based on two
dimensions:
• Time frame of the relationship
 Short term
 Long term
• Embeddedness in the organization
 Internalization
 Externalization
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16.  Tsui‘s(1997) Nature of Employee-
Organization relationship categorized into
four approaches:
• Long-term balanced
• Short-term balanced
• Underinvestment
• Overinvestment
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17.  Lepak & Snell’s (2002) with Rousseau&
Tsui’s framework
Human resources differ in strategic value
and uniqueness of skills:
• Contract jobs:
• Acquisition/Job-based approach:
• Alliance/partnership:
• Internal development/Knowledge-based
employment:
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18.  Contract jobs:
Usually short-term and make little
contribution to competitive positions and
involve limited organizational involvement
(i.e. administrative staff, janitors, low-level
clerical workers, assemblers etc).
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19.  Job-based approach:
Hiring people with valuable skills without
having to invest heavily in training.(i.e.
administrative staff, sales
personnel, engineers, customer service
agents etc.)
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20.  Alliance/partnership:
Human capital that is unique to a firm but
doesn’t add high strategic value to firm (i.e.
consultants, software engineers)
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21.  Knowledge-based employment:
Firms tend to develop employees with
valuable skills internally to capitalize on
investments over time and invest in
employee training and development of
employees.(i.e. mechanical engineers,
r & d employees, middle management
etc.)
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22. F
HIGH Employment Mode: Employment Mode:
Alliance /Partnership Internal Development/
 Thisis an Knowledge Based
Uniqueness of human capital
Leadership Style:
integrative Transformational Leadership Style:
Empowering
typology of
employment Employment Mode: Employment Mode:
Contracting Acquisition/Job-
modes and Based
Leadership Style:
leadership Directive Leadership Style:
style fit. Transactional
LOW Value of human capital HIGH
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23.  Directive :
As the first type, directive leaders try to
establish followers as compliant
subordinates by relying on such behaviors
as command and direction, assigned
goals, and punishments. Followers rarely
allowed to participate in decision-making
process (most effective for contract
employment)
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24.  Transactional:
Use of economic and social rewards
depending on the accomplishment. setting
goals, linking performance with
rewards, and providing feedback (most
effective for job-based employment)
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25.  Transformational:
Stimulating followers to transcend their
own self-interests for a larger collective
purpose, mission or vision and concentrate
on long-term goals, foster trust and
commitment(most effective for
alliance/partnership employment)
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26.  Empowering:
Followers targeted to develop own self
control, be a part of decision making
process. Leader should encourage self
discipline, enjoyment, and motivation at
work (most effective for knowledge-based
employment)
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27. Contract Acquisition/Job- Based Alliance/ Internal
Mode
Sample Jobs Emp.
Partnership Dev/Knowledge-
Based
Administrative Accountants, graphic Software engineers, Artists, analysts,
Snell 1999)
positions, technical designers, HR psychologists, design eng, mech.
(Lepak&
jobs, low level clerical, professionals, lawyers, architectural services eng, middle
support staff, trainers. management
programmers
Temporary Exchange between Accomplish common Internally valuable and
jobs/specific tasks, valuable skills/knowledge goals through firm specific hr , obtain
general skills, cost and market based rewards, cooperation, mutual high commitment and
Lead. Leadership demands Underlying
benefits, flexibility, immediately perform tasks, benefits, capitalize long term relationship,
objectives
short- term focus requiring expertise, low the other party’s unique competitive
commitment specialized adv.
knowledge or skill
Provide specific Ensure performance quality Vision in the Investment in internal
instructions, ensure to attain company goals, necessity of alliance, development, entitle
compliance, provide save investment in training utilize valuable HR, employees with more
job based rewards, no and development, provide build mutual trust, autonomy,
emotional attachment appropriate rewards, ensure relatively high participative decision
or long term maintain balanced commitment to the making, encourage
commitment exchange relationship alliance creativity
Directive Transactional Transformational Empowering
style
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28.  Two general assumptions of arguments';
• Different employment modes are associated with
different underlying objectives and psychological
obligations between employees and
organizations(Lepak & Snell 1999)
• Leadership styles that are more consistent with
these characteristics of each employment mode
are likely to be most effective.
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29. A Leadership Concept is derived from
historical leadership and motivation
literature and consists of these four styles;
directive, transactional, transformational,
empowering.
 Integration of these leadership styles with
the classification of employment modes to
develop this theory.
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30.  Encouraging the researches to empirically
examine the implications related to the fit(or
misfit)between employed lead styles and HR
practices for different groups of workers.(
Focused on Role of leadership)
 Integrating
the early leadership theories w.
management of different employment groups.
(Focused on Role of employment groups)
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31.  Combining the multiple leadership styles is
also possible for certain employment
groups. (i.e. transformational+
transactional leadership for
alliances, when the firm w. cost- leadership
strategy)
 Reactionof the followers when leaders
adopt multiple styles for different employee
groups of same organization.
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32.  Opens the door to such utilization by
illustrating how leaders should vary their
behaviors according to the nature of the
employment mode.
 Highlightingthe relationship between
leadership and employment with some
contextual factors and leadership
characteristics. (Such as skills, personality
traits etc.)
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33.  This article’s scope is,
• to explore all the iterations of potentially
important factors,
• to propose a typology which provides a
useful starting point for research
integrating the leadership of employee
groups with manner by which they are
managed.
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