2. 7.1 The Meaning of Leadership
Researchers and practitioners have studied organizational
leadership for more than a cen-
tury. Although research approaches differ, the same basic
question guides all leadership
research: What constitutes leadership and how does it emerge?
To find answers, researchers
and practitioners break the topic into three main lines of
inquiry:
• What is the difference between management and leadership?
Are all good leaders
also good managers? Why or why not?
• How does leadership emergence differ from assigned
leadership? What are the
advantages and disadvantages of each?
• Are leaders born or made? What specific characteristics of
leaders are innate?
What specific abilities are learned?
The following sections address each of these questions in turn.
Consider This: What Is Leadership?
Think about each of the questions above and try to answer them
using examples and evidence
from your own personal, social, and/or professional experience.
Management Versus Leadership
John Kotter, a Harvard University professor, explained the
difference between managers and
leaders by determining where they focus their time and energy.
He argues that managers act
to reduce organizational complexity by creating plans, setting
4. resale or redistribution.
197
Section 7.1 The Meaning of Leadership
In this book, we will define leadership as the process of
influencing a group of people to
achieve a specific vision or goal. This definition has three
important components. First, lead-
ership is a process, which implies that it is not a single trait or
characteristic and may thus be
achieved by all people. Second, leaders must influence
followers to achieve a desired outcome,
a task that requires leaders to act socially using a positive
personal style. Third, leadership is
effective only to the extent that it is able to promote the
achievement of specific goals and out-
comes. Throughout this chapter, we will refer to people who
engage in leadership processes
as leaders, and those whom the leaders influence will be called
followers.
Emergent Leadership Versus Assigned Leadership
One type of leadership, called assigned leadership, stems from a
person’s formal job title or
position within the organization. Plant managers, team leaders,
frontline supervisors, and
members of senior management (CEOs, presidents, senior vice
presidents, etc.) are examples
of assigned leaders. On the other hand, when a person displays
behaviors that the group per-
ceives to be leader-like, that person exhibits emergent
leadership, regardless of his or her
5. job title or position within the company. Unlike assigned
leaders, emergent leaders are not
defined as leaders due to any official assignment. Researchers
have identified a number of
personality traits that are linked to emergent leadership,
including confidence, dominance,
and intelligence (Smith & Foti, 1988).
The most important thing to keep in mind is that people are not
effective leaders simply
because they are assigned a leadership role. Effective leadership
stems not from a job title
but from actions and behaviors.
Are Leaders Born or Made?
The question of whether leaders are born or made is one of the
fundamental issues in lead-
ership research. Until recently, the answer to this question
remained elusive. However, with
the help of identical-twin studies, researchers believe they now
know the answer. Because
identical twins who are raised away from each other share the
same DNA but not the same
environment, genetic influences are believed to account for
their similarities.
Scientists looked at whether identical twins reared apart shared
leadership (or lack of leader-
ship) qualities. In one study, researchers tallied the number of
leadership roles that were held
in professional associations and organizations by 110 identical
twin pairs and 94 nonidenti-
cal twin pairs who were reared in different environments
(Arvey, Rotundo, Johnson, Zhang,
& McGue, 2006). Interestingly, the researchers determined that
30% of leadership-role occu-
7. practitioners hold different and sometimes even contradictory
views on the characteristics
and behaviors that make a leader. Specifically, leadership
theories vary in the emphasis they
place on the leader, the followers, their interaction, and the
context or environment within
which they operate.
Traditional Theories
Although current research supports the idea that leadership is
based on a combination
of genetic and environmental factors, leadership research at the
turn of the 20th century
debated which one was more important. Those who supported
trait theories, which assume
leadership has a biological origin, believed that leadership was
an innate quality that only
a very few possess. Proponents of behavioral theories of
leadership, which suggest that
leadership is attainable by anyone who has the correct training
and experiences, focus less
on leaders’ traits and more on their observable behaviors. Even
though research from this
period is limited due to both its polarity and datedness,
information gleaned from both per-
spectives is still relevant to current conceptualizations of
leadership. Let’s take a closer look
at each set of theories in turn.
Trait Theories
In general, trait theories of leadership differentiate leaders from
nonleaders by their per-
sonal traits and characteristics. These theories are often referred
to as great-men theories
because they tried to identify innate characteristics shared by
the great leaders in history,
9. Section 7.2 Traditional, Contingency, and Relational Theories
of Leadership
With the identification of the Big Five personality traits in the
1990s (see Chapter 3),
researchers were able to assign each of the leadership traits
identified thus far into one of
the five personality categories (extraversion, agreeableness,
openness to experience, con-
scientiousness, and neuroticism). Of the Big Five traits,
extraversion is the strongest predic-
tor of leadership emergence (Judge, Bono, Ilies, & Gerhardt,
2002). This makes sense; it is
really no surprise to learn that people who are energetic,
dominant, social, and outgoing are
often described as leader-like. However, not all leaders display
extraversion. For example,
Bill Gates, founder of Microsoft, is known to be introverted, as
was Steve Jobs, founder of
Apple. Other elements of Big Five traits, such as aspects of
conscientiousness (“disciplined”
and “keeps commitments”) and openness to experience (“takes
risks” and “flexibility”), are
also related to leadership emergence.
Another trait that shows a relationship to leadership
effectiveness is emotional intelli-
gence (EI). Leaders with high EI are self-aware, good at
detecting others’ emotions, and
able to manage their own emotions (Goleman, 2000). Once
again, it is easy to see how man-
agers who can effectively read and manage emotions and
skillfully handle social interac-
tions would also have greater influence over their followers. For
example, a study of division
10. heads in a global food and beverage company found that 87% of
leaders with EI competen-
cies were also in the top third for performance-based bonuses,
and their divisions outper-
formed annual revenue targets by 15% to 20%. Contrarily, a
study by the Center for Creative
Leadership found inadequate EI to be a primary cause of
executive failure and to be much
more detrimental for leaders than lack of technical skills
(Luthans, 2002a). Much has yet to
be determined regarding the scientific dimensions and
trainability of EI, which has led to
criticism of the concept (Locke, 2005). However, the notion that
social aptitude is critical for
leaders is impossible to ignore.
Find Out for Yourself: Your EI
Are you emotionally intelligent? To help you determine your
level of EI, access and com-
plete the assessment provided by the Greater Good Science
Center at the University of
California–Berkeley.
Test Your Emotional Intelligence
What Did You Learn?
1. What is your overall level of EI?
2. Which types of emotional expression do you seem to detect
the most? Why?
3. Which types of emotional expression do you seem to detect
the least? Why?
4. Which of the characters were easier to “read”? Why?
5. Which of the characters were more difficult to “read”? Why?
6. Were there any consistencies in your ability or inability to
read characters based on
12. istics, trait theories often face criticism for being useless in
terms of helping develop leaders.
Consider This: The Best Leader You Have Ever Had—Part 1
Think about your best leadership experience or the best leader
you have ever had.
Question to Consider
1. What were some of the traits that this leader possessed?
Based on your knowledge of
individual differences from previous chapters, be sure to list
only traits and not atti-
tudes, behaviors, or other characteristics that can be trained or
developed.
Behavioral Theories
The inconsistency of early trait theories led some I/O
psychologists in a new direction. In
the late 1940s researchers at Ohio State University conducted
the most extensive study of
the time on the leadership behaviors important to worker
performance. During the study,
researchers asked workers to identify behaviors of effective
leaders. From the hundreds
of identified behaviors, they discovered that the vast majority
clustered around two broad
dimensions: task-centric leadership and people-centric
leadership.
Table 7.1: Task-centric versus people-centric leadership styles
Leadership style Pros Cons
Task-centric • Creates clear, easy-to-follow work
schedules.
13. • Clearly defines requirements and
deadlines.
• Maintains high standards with
optimal efficiency.
• Is best for employees who need
structure and struggle with time
management.
• Can lead to a lack of employee
autonomy and creativity, which can
result in low morale.
• Generally not a good fit for self-
motivated employees.
People-centric • Acknowledges individual employees
for the work they do.
• Focuses on employee relationships.
• Encourages employees to feel like
they are a part of the company’s
success.
• Employees may feel like they need
more task-oriented direction.
• Focus on the manager–employee
relationship might displace the
focus on other important aspects,
which can result in ineffective
decision making.
15. high in both styles would be the most effective, because such
leaders would not only guide
employees toward reaching goals but also support them
emotionally along the way (Kerr,
Schriesheim, Murphy, & Stogdill, 1974). Research, however,
has not always supported this
notion. More recent studies show that initiating structure is
more strongly related to employee
performance, whereas consideration is more important for
employee attitudes such as orga-
nizational commitment, job satisfaction, and overall morale
(Judge, Piccolo, & Ilies, 2004).
As with trait theories, the behavioral theories of leadership have
both advantages and disad-
vantages. On the positive side, research into the two behavioral
leadership styles is extensive
and strongly supports their link with employees’ performance
and attitudes. A major distinc-
tion between behavioral theories and trait theories is that the
former suggests the possibility
of leader development—that is, leaders are not born and can be
made. As a negative, this set
of theories has failed to identify a universal style of leadership
that works with all people in
every situation.
Consider This: The Best Leader You Have Ever Had—Part 2
Reflect on your best leadership experience or the best leader
you have ever had.
Questions to Consider
1. What were some of the behaviors this leader exhibited?
2. When, how often, and in what ways did he or she initiate
structure?
17. oriented or relationship oriented
(similar to the two leadership styles discussed earlier, initiating
structure and consideration),
yet it maintains that the effectiveness of either type depends on
the situation and the amount
of control the leader has over it.
Within the theory, Fiedler identifies three conditions that
describe the situation: leader–
follower relationship, degree of task structure, and formal
authority or power. As each condi-
tion increases in strength (e.g., better leader–follower
relationships, greater job structure,
and higher levels of leader power), so too does the amount of
control the leader possesses.
For example, a situation that highly favors leader
control might feature an army sergeant who has
developed positive relationships with subordi-
nates, clearly conveys specific expectations, and
has the authority to reward and punish the sol-
diers. On the other hand, a situation that does not
favor leader control might feature the president
of a sporting club who has offended the member-
ship, neglected to set any formal goals, and has
no authority to hold any of the other volunteer
board members accountable for their actions.
Fiedler’s theory concludes that, in extreme situ-
ations (i.e., very favorable or very unfavorable
for leader control), a task-oriented leader will be
more effective. However, in moderately favorable
situations, the relationship-oriented leader will
be more effective.
Although Fiedler was the first to try to incorporate situational
factors into the overall under-
standing of leadership effectiveness, his model has a number of
18. limitations. First, it assumes
that leaders have only one leadership style and that
organizations must match leaders to
appropriate situations to promote peak leadership effectiveness.
Of course, we all know lead-
ers who are able to adapt their style to fit the situation. Second,
the model does not explain
what to do should a mismatch arise between the leader and his
or her situation. Finally,
although appropriate theoretically speaking, Fiedler’s ideas
would be impractical to use,
because organizations would have to try to evaluate every work
situation and potential leader
and then somehow match the two.
Hersey and Blanchard’s Situational Leadership Model
Shortly after Fiedler’s model was introduced, Hersey and
Blanchard (1977) developed another
contingency model, which they named situational leadership.
Unlike Fiedler’s model, which
assumed a leader usually has one preferred style, Hersey and
Blanchard’s model proposed
that leaders can adapt their styles to the situations at hand.
Specifically, leaders shift among
four leadership styles, based on their followers’ maturity level.
In turn, followers’ maturity
is determined by their (a) willingness (motivation) and (b)
ability (skills) to perform their
tasks or responsibilities. Immature followers are neither willing
nor able to perform. Mature
iStockphoto/Thinkstock
Better leader–follower relationships,
greater job structure, and higher levels
of leader power increase the amount of
20. 3. Participating is used with followers who are willing but not
able to perform. The
leader-follower relationship relies on shared decision making,
with the leader
focusing on relationship building.
4. Delegating is used with followers who are both willing and
able to perform. The
leader–follower relationship is mostly one of support, with
followers being in
charge of their assigned tasks and how they are accomplished
and the leader
monitoring this process.
Unfortunately, despite the intuitive appeal of this theory,
subsequent empirical scientific
research did not support it (Fernandez & Vecchio, 1997;
Vecchio, 1987). However, the tenets
of the theory remain viable, especially the importance of
adapting leadership style to follow-
ers and situations.
Path–Goal Theory
Path–goal theory focuses on the behaviors leaders use to
motivate workers to achieve their
goals. As discussed earlier in this chapter, effective leaders help
employees reach their profes-
sional and organizational goals by guiding them along a path to
success and supporting them
with resources and rewards.
Path–goal theory proposes four styles leaders can utilize to
motivate employees to achieve
their goals (House, 1996):
22. Section 7.2 Traditional, Contingency, and Relational Theories
of Leadership
Path–goal theory has a number of positive attributes. Most
importantly, it suggests that lead-
ers are able not only to change their leadership styles but also
adapt them to fit the situation.
Furthermore, it highlights the ways in which leaders can
motivate employees’ performance,
which is essential if leadership is to be effective. Despite these
strengths, path–goal theory
has faced criticism for its complexity and the lack of research to
support it.
Relational and Followership Theories
So far in this chapter, we have examined leadership theories
that deal with the ways in which
innate traits, observable behaviors, and situational factors can
influence leadership effec-
tiveness. However, none of these theories address the influence
of the critical relationship
between leader and follower. Two theories that do so are called
leader–member exchange
theory and implicit leadership theory. Furthermore, leadership
does not occur in a vacuum.
Followers can play an important role in allowing leaders to
emerge and become effective. In
other words, where there is no followership, there is no
leadership. Although followership
theories and leadership theories that emphasize the role of
followers are not as abundant as
those that focus on leaders, we will discuss followership toward
the end of this section.
Leader–Member Exchange Theory
23. Take a moment to think about a manager for whom you have
worked. Did he or she treat you
and your fellow employees exactly the same? If not, how did the
treatment differ? Did some
employees receive better work assignments, greater
communication, or more interpersonal
attention? These are some of the main topics of leader–member
exchange theory (LMX),
which deals with the way in which the leader–follower
relationship affects the leadership
process (Dansereau, Graen, & Haga, 1975). LMX proposes that
leaders develop special rela-
tionships with a small segment of followers, called the in-group,
and place the remaining
followers in the out-group. The leader makes placements based
on early interactions, and
these placements remain relatively stable over time. The leader
views the in-group followers
as competent, trustworthy, and highly motivated and views the
out-group as lacking these
qualities. Although there are questions about how leaders
establish in-group and out-group
membership, it is clear that leaders treat members of the two
groups differently. Specifically,
in-group followers receive more information, rewards, and
support and gain more confidence
than out-group members (Dansereau et al., 1975). Conversely,
out-group members receive
more punishments, less communication, and fewer personal
interactions.
The manner in which a leader interacts with members of each
group has important impli-
cations for workers’ job performance and attitudes. High-
quality leader–member exchange
relationships lead to less employee turnover and
25. groups. Furthermore, if the
leader makes in- and out-group placements based on age,
gender, race, cultural background,
or physical abilities, charges of discrimination may be
warranted. Leaders must be aware of
personal biases and strive to allocate resources based on
employees’ needs and competence
instead of first impressions, personal relationships, or physical
characteristics.
Consider This: Being in the In-Group Versus Being
in the Out-Group
Think about a situation in which you believe you were in a
leader’s in-group.
Questions to Consider
1. How did the leader treat you differently?
2. Were you the only one favored by the leader, or were there
others, too?
3. What common traits, values, beliefs, or KSAOs (e.g., gender,
age, religion, race, color,
cultural background, physical appearance, hobbies, interests)
did you share with the
leader?
4. What common traits, values, beliefs, or KSAOs did you share
with other members of the
in-group?
5. On what traits, values, beliefs, or KSAOs did you, the leader,
or others in the in-group
vary from members of the out-group?
27. matching
process
(A)
1. Sensitivity
2. Intelligence
3. Dedication
Helen’s behaviors/traits
(B)
Question: Is Helen dedicated?
Reasoning: “Well, she’s an effective
leader. Therefore, she is
dedicated.”
Rating behaviors
or using global impressions
(D)
Helen is an
effective leader
Leader
evaluation
(C)
Section 7.2 Traditional, Contingency, and Relational Theories
of Leadership
Figure 7.1: ILT and leadership ratings
28. This sample rating shows that Helen, a potential leader, meets
three of the four specified criteria of
an effective leader. This makes her a strong candidate for being
an effective leader to this particular
group of followers.
From Industrial/Organizational Psychology: Understanding the
Workplace (5th ed., Fig. 13.1), by P. E. Levy, 2016, New York,
NY:
Worth Publishers. Copyright 2017 by Worth Publishers. All
rights reserved. Reprinted by permission of Worth Publishers.
1. Sensitivity
2. Intelligence
3. Dedication
4. Dynamism
Effective leader prototype
Prototype
matching
process
(A)
1. Sensitivity
2. Intelligence
3. Dedication
Helen’s behaviors/traits
(B)
Question: Is Helen dedicated?
Reasoning: “Well, she’s an effective
30. resale or redistribution.
207
Section 7.2 Traditional, Contingency, and Relational Theories
of Leadership
What About Followers and Followership?
It is hard to imagine a leader with no followers. While a leader
may be assigned to a position
and given authority over others, the leader may not be able to
exercise effective leadership
unless the followers choose to allow him or her to do so. Keep
in mind that followership is
not the same as obedience or submission. Some leaders may
exercise their authority through
dominance, fear, or control over rewards and punishment. These
leaders may force their fol-
lowers to do what they want them to do. However, obeying
orders is vastly different from
willingness to buy into a leader’s vision and committing to
shared goals and strategies. The
notion of leadership as the ability to influence and achieve
goals through others necessitates
the latter.
The limited research on followership shows that followers play
an active role in effective lead-
ership. Almost all of the leadership qualities discussed in this
chapter are only important to
the extent that they are perceived by followers. Moreover,
followers are willing to follow lead-
ers with whom they share mutual identification and trust
(Hollander, 1992). Research shows
31. that leaders’ trustworthiness is determined through their
followers’ perceptions of their abil-
ity (e.g., knowledge and skills), benevolence (e.g., having the
followers’ best interest at heart),
and integrity (e.g., honesty, fairness, and consistency in words
and actions) (Colquitt, Scott, &
LePine, 2007).
Furthermore, in the same way that trust and respect are earned
over time, perceived leader-
ship and desired followership also change and evolve. Leaders
gain legitimacy based on how
they are perceived to have been selected, how they behave, and
the extent to which they meet
Consider This: Your ILT
Using your own observations and experiences, write a one-page
description of your ideal
leader. In your description, be sure to include the traits, values,
beliefs, and behaviors you
would expect him or her to exhibit in particular situations, as
well as characteristics of your
relationship with the leader. Now make a brief list of three to
five leaders who have influenced
you personally, socially, academically, or professionally. Rank
order these leaders, starting
with the one who influenced you the most. Compare each of the
leaders on your list against
your ideal leader description.
Questions to Consider
1. To what extent do the three to five leaders you listed fit your
original description of
an ideal leader? To what extent do they deviate? To what extent
are they similar to or
33. perceptions of competence and has earned the trust, respect, and
loyalty of his or her fol-
lowers can afford to “rock the boat” and bring about unusual
changes that may otherwise be
unacceptable (Hollander, 1992). This leader has already earned
enough “credit” in the idio-
syncrasy credit “bank” to draw from when such situations arise,
which makes the followers
more accepting of such deviations from expectations.
Finally, many organizations are now moving away from the
traditional leadership framework
and are using various forms of shared leadership, where no one
person is assigned all the
authority associated with leadership. For example, team
members can be assigned various
leadership responsibilities based on experience, or leadership
roles can be rotated periodi-
cally among team members over time or across projects. Shared
leadership, also sometimes
referred to as distributed leadership or collective leadership,
blurs the line between leader-
ship and followership and has been shown to contribute
significantly to team effectiveness
(Wang, Waldman, & Zhang, 2014).
Consider This: Shared Leadership—an Orchestra
Without a Conductor?
Watch the following video in which members of the Orpheus
Chamber Orchestra discuss how
they practice shared leadership by operating without a
conductor!
A Case of Shared Leadership: The Orpheus Chamber Orchestra
35. Charismatic Leadership
When you hear the phrase “charismatic leadership,” specific
leaders undoubtedly spring to
mind, such as Barack Obama, John F. Kennedy, Martin Luther
King Jr., Mohandas Gandhi,
and Indira Gandhi. Each of these individuals is considered
charismatic, but why? According
to the research, charismatic leaders challenge the status quo,
rally followers around an
inspirational vision, empower followers, support followers’
needs, and take personal risks to
achieve success. Based on the expression of these behaviors,
followers make heroic attribu-
tions about their leader, which enhances the leader’s credibility
and effectiveness (Conger &
Kanungo, 1998).
Of course, charismatic leaders are not always moral or ethical.
Individuals such as Adolf Hit-
ler, Benito Mussolini, and Charles Manson displayed all of the
above-mentioned charismatic
leadership behaviors, yet they used their power in deplorable
ways. Thus, it is important to
distinguish between positive and negative charismatic leaders.
First, creating and maintain-
ing personal power is the main goal for the negative charismatic
leader. These individuals
care more about creating personal devotion than generating
commitment to the originally
espoused ideals. Second, the negative charismatic leader
attempts to keep followers weak
and subservient in order to maintain power. On the other hand, a
positive charismatic leader
supports, empowers, and challenges followers to achieve more.
Finally, the negative charis-
36. matic leader uses his or her attributed heroic appeal for self-
interest instead of the interest
of the followers.
Within the workplace, charismatic leaders can use their power
to inspire innovation, collabo-
ration, creativity, and industry leadership—or they can misuse
their power to inspire anxi-
ety, mistrust, and inequality (e.g., a CEO who brokers a
multimillion-dollar salary, replete with
vacation homes and private jets, at the expense of employees’
benefits and jobs). On the nega-
tive side, one study showed that charismatic CEOs were able to
negotiate higher salaries even
when the organization’s performance was mediocre (Tosi,
Misangyi, Fanelli, Waldman, & Yam-
marino, 2004). Although negative charismatics are often
successful at convincing others to
follow what might once have been a worthy goal, their misuse
of power and focus on personal
instead of public good can result in disaster both for followers
and the organization as a whole.
Transactional Leadership Framework
Most of the theories presented so far have dealt with leaders
who work within a transac-
tional leadership framework, in which they guide and motivate
followers along a path
toward established goals. Transactional leadership contains
three distinct sets of behaviors:
laissez-faire leadership, management by exception, and
contingent rewards.
Laissez-faire leadership is actually neither management nor
leadership. Laissez-faire leaders
make no decisions, deny responsibility, provide no support to
38. meta-analysis by Judge and
Piccolo (2004) found a strong relationship between contingent
reward leadership and
employee job satisfaction, employee motivation, leader
effectiveness, and group/organiza-
tional performance.
The power of positive feedback, and positivity in general, was
discussed in detail in Chapters
3 and 4. However, it is important to note here that positive
feedback and recognition, when
administered contingently by leaders to their employees based
on their performance, repre-
sent powerful rewards that can realize strong motivational
results. The magnitude of those
positive results on employee performance has
been found to be comparable to that of financial
rewards (Stajkovic & Luthans, 1997, 2001, 2003).
In fact, employees can become saturated with
financial rewards, in the sense that more money,
although good to have, will not necessarily moti-
vate them to work harder. Actually, it may moti-
vate them to work less and reallocate their time to
other personally meaningful goals such as spend-
ing time with family and friends, retiring early, or
investing their additional financial resources on
other hobbies and interests. On the other hand,
nobody ever complains of having too much posi-
tive feedback or recognition! These two things
have the advantage of being inexhaustible.
Thus, leaders should realize that they have at
their disposal powerful tools to reward their
employees that cost them and their organiza-
39. tions absolutely nothing: positive feedback and recognition.
They can leverage those tools by
learning to intentionally observe their followers’ behaviors and
contingently rewarding the
appropriate behaviors through positive feedback and
recognition, instead of, or at least less
frequently than, focusing on punishing negative behaviors.
Contingent rewards and behav-
ioral management were discussed in more detail in Chapter 6.
Transformational Leadership Framework
Leaders who work within a transformational leadership
framework differ from transac-
tional leaders in that they are more concerned with improving
followers’ performance and
developing them to their fullest potential (Avolio, 1999).
Ultimately, transformational leaders
attempt to motivate followers beyond their own self-interest in
order to accomplish some-
thing for the greater good. Research on transformational
leadership has dramatically spiked
in the past few decades (Judge & Bono, 2000) and has led to the
identification of four specific
michaeljung/iStock/Thinkstock
Positive feedback represents a
powerful reward that can significantly
motivate employees. The performance
improvements realized as a result of
these intrinsic rewards are equivalent to
those of financial incentives.
you83701_07_c07_195-230.indd 210 4/20/17 5:20 PM
41. solve big problems.
• Finally, individualized consideration provides followers with a
supportive environ-
ment and attends to their relationship needs. Typically,
transformational leaders
who practice these behaviors act as coaches or mentors for their
followers. This
support and guidance helps followers develop new skills, which
then enhance their
work performance and potential.
In general, research has shown transformational leadership to be
more effective than transac-
tional leadership in producing favorable performance and
attitudinal outcomes (Bass, Avolio,
Jung, & Berson, 2003; Dumdum, Lowe, & Avolio, 2013; Howell
& Avolio, 1993). Keep in mind,
however, that transactional and transformational frameworks of
leadership are not mutually
exclusive. Indeed, the best leaders actually use both:
transactional to build the initial frame-
work, then transformational to inspire even greater motivation
and levels of performance.
Emerging Theories of Positive Leadership
Over the past several years, there has been a
reorientation toward positive leadership theo-
ries, including ethical leadership theory, spiri-
tual leadership theory, and authentic leadership
theory.
Ethical Leadership Theory
Ethical leadership theory has four dimensions:
integrity and altruism of the leader and collec-
tive motivation and encouragement for the fol-
43. perfection, compassion, passion,
inspiration, investigation, dedication, appreciation,
determination, and cooperation (Karakas,
2010). Most importantly, spiritual leadership is different and
more inclusive than religious
leadership, because it is based on a value system that lends
itself to most religious and cul-
tural backgrounds. Thus, it is more suitable for global leaders
who are leading across cultures,
because it is not as specific to the United States or to the West
as are most other leadership
theories.
Authentic Leadership Theory
The third emerging positive leadership theory introduced here is
authentic leadership
theory. Harter (2002) defines authenticity as “owning one’s own
personal experiences, be
they thoughts, emotions, needs, wants, preferences, or beliefs[,]
. . . [acting] in accord with
the true self, expressing oneself in ways that are consistent with
inner thoughts and feel-
ings” (p. 382). Thus, authentic leaders are expected to remain
true to themselves, admit their
strengths and weaknesses, and openly express their true
thoughts and feelings. Authentic
leadership comprises self-awareness, relational transparency,
internalized moral perspec-
tive, and balanced processing. Balanced processing is the
leader’s ability to objectively con-
sider different viewpoints when making decisions (Avolio,
Gardner, Walumbwa, Luthans,
& May, 2004). Authentic leaders are also capable of exploring
and striving toward multiple
“possible selves” for the future if their present, “actual self ” is
less than desirable, without
45. Section 7.4 Leadership and Power
for success. Now imagine the opposite: an individual who is
considered below-average and
has limited resources and opportunities but emerges as a leader
against all odds. Both of
those situations are rare. It is unlikely that a potential leader
will find himself in a situation
in which his development is perfectly planned. It is also
unlikely that an effective leader will
result from a haphazard combination of uncontrollable
situational factors. Authentic leader-
ship development is a more realistic process in which planned
and unplanned trigger events
are purposefully orchestrated within a supportive organizational
climate in order to enhance
self-awareness, self-regulation, and self-development. In turn,
authentic leaders are charac-
terized by being keen to develop their followers into authentic
leaders as well. Of course, the
ultimate goal of authentic leadership development is veritable,
sustainable performance from
the leader and the followers.
Find Out for Yourself: Warren Buffett and Bill Gates
as Authentic Leaders
Warren Buffett and Bill Gates are two of the richest and most
successful businessmen in the
world. They are known for investing time and energy in
imparting their wisdom, knowledge,
and experience to the next generation of leaders, both in their
respective companies and in
their numerous interactions with college students. Watch the
following video for a great exam-
46. ple of one of those many occasions.
Buffett and Gates Go Back to School: Good Business Habits
What Did You Learn?
1. In what ways could Buffett and Gates be considered authentic
leaders?
2. In what ways do Buffett’s and Gates’s leadership styles
influence the authenticity of
their followers and, in turn, their development into authentic
leaders?
7.4 Leadership and Power
Power is the capacity of one person to influence the behaviors
of another. In many ways this
definition is similar to that of leadership. So, are leadership and
power the same thing? The
answer is no, but the two concepts are intertwined. Power is a
tool; leadership is use of that
tool. Like any tool, power may be used effectively or poorly,
positively or negatively. Finally, not
all leaders have the same kind or amount of power, many can
lose it, and some have none at all.
Where do leaders get their power? Why do some leaders have
power and others do not? Raven
(1993) has identified five types of power—legitimate, coercive,
reward, expert, and referent—
that address these and other power-related questions.
Leaders begin their tenure with a certain amount of legitimate
power, which stems from their
job title or position within the organization. Workers will
follow their boss because he or she is,
48. must be able to give rewards.
Examples include pay, benefits, promotions, job assignments,
and other recognition.
Expert power stems from a leader’s special skills, knowledge,
and expertise. This is one of
the strongest forms of power because it is based on the leader’s
actual competence rather
than his or her job title. Note that leaders who lack expert
power can always gain it by increas-
ing their knowledge or competence.
Finally, if you have ever liked and admired another person,
chances are that person had great
influence over your thoughts and behaviors. Referent power is
power that develops out
of admiration for and the desire to be like the leader. Followers
can grant referent power
to anyone, regardless of the person’s formal level of leadership
or relationship to them. For
example, many people attribute referent power to famous actors,
singers, athletes, political
leaders, and even historical figures whom they have never met
or directly interacted with.
Charismatic, transformational, and authentic leaders are also
likely to exert referent power
over their followers.
Leaders may hold any of the five sources of power or
combinations thereof, but the ques-
tion remains, which sources are the most effective? Research
has shown that formal power
sources (legitimate, coercive, and reward) are less effective in
influencing followers than
informal sources (expert and referent). Expert and referent
power are positively related to
50. we know that a good portion of leadership emer-
gence and effectiveness is based on stable per-
sonality traits, which tend to be hardwired and
almost impossible to change in adults. This is the
“born” part of leadership. Thus, it is important to
select leaders who possess these traits, because
they cannot be developed. Identifying and select-
ing effective leaders is one of the most important
yet most difficult tasks for organizations. Nadler
and Nadler (1998) clearly summarized this chal-
lenge, writing that
in their most introspective moments, most executives readily
acknowledge
that selecting the right people for the right jobs constitutes one
of the most
important responsibilities. Few decisions that they make will
have as direct
an impact on every facet of the organization. Yet, few other
decisions are made
in such an illogical, slipshod manner. (p. 229)
To improve their leadership selection process, organizations
should always include the fol-
lowing two steps: First, perform a rigorous job analysis of the
leadership position in question,
and second, introduce structured interviews and assessments
into the selection process.
In Chapter 2 we discussed the value of the job analysis in
defining the characteristics a worker
needs to perform a job successfully. When applied to positions
of leadership, a job analysis
also provides the data needed to select a successful job
candidate, including the critical KSAOs
necessary for success, the essential tasks the leader will
51. perform, and the situational factors
the leader will experience. Situational factors are especially
important when an organization
wants to establish fit between a candidate and the work
environment. After the organization
thoroughly defines the leadership position through a job
analysis, it will be able to design an
effective evaluation process.
As already mentioned, structured interviews and assessment
tools are key to identifying lead-
ers. Structured interviews give the organization the opportunity
to learn about and evaluate
the candidate’s experiences and how they relate to the position,
and they are especially effec-
tive at evaluating the candidate’s communication, persuasion,
influence, and negotiation abili-
ties. Assessment tools, in the form of personality tests, measure
critical leadership traits, such
as extraversion, conscientiousness, and openness to experience.
Although not as commonly
used as interviews and personality tests, assessment centers also
help organizations evaluate
leader candidates. Because they require candidates to
demonstrate essential leadership skills
(such as coaching, delegating, persuading, influencing, making
decisions, communicating,
and formulating strategy) within a simulated work environment,
assessment centers provide
clearer insights than any other selection method into an
individual’s leadership skills.
Ryan McVay/Thinkstock
Structured interviews and assessment
tools are key to identifying potential
53. found that leaders who were
asked to recall specific factors that were most valuable to their
development as leaders most
frequently cited experiences, not education (McCall, Lombardo,
& Morrison, 1988). Clearly,
people do learn to be effective leaders on the job, so
organizations must provide leaders with
specific hands-on development opportunities that stretch and
challenge their KSAOs. This is
also consistent with the authentic leadership development
process, discussed earlier, which
relies on planned and unplanned trigger events and experiences
rather than just formal edu-
cation or training.
Executive Leadership Derailment
The reason organizations spend so much time, money, and effort
trying to identify, select, and
develop leaders is simple: They do not wish to hire ineffective,
incompetent, or harmful lead-
ers. Leadership derailment, or the process by which a leader
displays increasingly ineffec-
tive behavior, is very expensive. Costs associated with
leadership derailment have been esti-
mated to range from $750,000 to $1.5 million per executive
leader (DeVries & Kaiser, 2003).
One study even estimated that the cost per derailed executive
leader exceeds $2.7 million
(Smart, 1999). How can this be? By the time a leader derails,
the organization has already
spent a large amount of money both to recruit the executive
(including executive search firm
Find Out for Yourself: Criteria for Selecting Leaders
Browse the Internet for leadership position openings. Use free
search engines, or if you sub-
55. retirement plan and severance
package payments. Finally, most estimates of leadership
derailment expenses do not include
the hidden costs associated with an incompetent leader, such as
losses in business opportu-
nity, customers, employees, and intellectual property.
Studies on the prevalence of incompetent leaders have shown
astonishingly high numbers.
Participants in one study indicated that only 38% of their
bosses, both current and former,
were worthy of working for again (Curphy, 2008). After
examining a dozen published studies
on the investigation of the base rate of leadership failure,
Hogan, Hogan, and Kaiser (2010)
found that results ranged from 30% to 67% and placed the
average at 50%. In other words,
on the basis of the data, the authors concluded that “two-thirds
of existing managers are
insufferable, and at least half will eventually be fired” (p. 556).
The question is, why do leaders derail? Although there are of
course many reasons why a
person can fail as a leader, research has been able to find some
consistent signs of derailment
(Hogan & Warrenfeltz, 2003):
• Displaying a lack of self-awareness
• Having a narrow focus and lack of strategic perspective
• Being arrogant or overly cocky
• Exhibiting overly controlling behaviors, such as
micromanagement
• Showing insensitivity and abrasiveness toward others
• Allowing stress to become overwhelming
• Favoring self-interest over the company’s interest
58. the message. Examples of
noise are language barriers, information overload, emotion, or
perceptual problems. The final
element of communication is the feedback loop. By obtaining
feedback, the sender confirms
that he or she has in fact transferred the desired message and
that the receiver has properly
decoded the message.
Figure 7.2: The communication process
The seven essential elements of the communication process.
Channel
Feedback
Sender
Noise
source
Message
Encoding
message
Receiver
Message
received
Message
decoded
Barriers to Effective Communication
Effective communication is inherently difficult. As mentioned
60. 219
Section 7.6 The Importance of Communication
Key Functions of Organizational Communication
From globalization to advances in technology to the troubled
economic climate, the enor-
mous changes and challenges faced by businesses today have
made effective communication
increasingly important to overall organizational performance.
Although the primary function
of communication is to affect receiver understanding, research
suggests it does much more
than this (Poole, 2010). For example, Neher (1997) emphasized
the effect of communication
on organizational and social aspects within the workplace over
and above the basic exchange
of information. Specifically, Neher drew attention to the role of
communication in establish-
ing order and control as well as its influence on functions such
as problem solving, conflict
management, negotiation, and bargaining. Similarly, Myers and
Myers (1982) identified three
primary functions of communication over and above that of
message conveyance: coordina-
tion and regulation of production activities, socialization of
workers, and innovation.
Structure of Communication
The structure of organizational communication can be very
complicated. In large companies
communication can involve hundreds or even thousands of
workers using many different
channels across a number of hierarchical levels. In the past,
61. large bureaucratic organiza-
tions relied almost exclusively on formal (e.g., downward or
hierarchical), one-way methods
of communication. They believed that workers who lacked a
structured, controlled commu-
nication process would be unable to obtain the information they
needed to perform their
jobs properly. Furthermore, these organizations feared that
informal (e.g., lateral) methods of
communication would create uncontrolled chaos and block the
flow of information. However,
it is important to note that no formal communication system can
account for all of the pos-
sible paths and directions of communication within an
organization. Therefore, such systems
are inherently limited. Indeed, some researchers have proposed
that informal communica-
tion is critical for managing and maintaining an organization’s
culture (D’Aprix, 1996).
In addition to supporting an organization’s culture, informal
processes can also make com-
munication speedier and more effective than formal processes
can through the establish-
ment of communication networks. A communication network,
also known as the grapevine,
arises when workers establish lines of communication among
themselves, including peers,
members of both higher and lower hierarchical levels, and
workers in different areas of the
company. Figure 7.3 shows an example of a simple
communication network.
A number of properties influence the way in which networks
and the people within them
work. First, network density compares the number of existing
63. Executive
Coworker
Section 7.7 Direction of Communication
Interestingly, contrary to the notion that they are breeding
grounds for rumor and gossip,
informal networks have been found to channel communication
as accurately as more formal
methods (Monge & Contractor, 2003). Furthermore, employees
who are actively involved in
informal networks are more knowledgeable about their
organization, better at improvising to
solve problems, and better able to innovate (Albrecht & Hall,
1991; Bach, 1991; Bastien, 1992).
Informal networks may demonstrate their effectiveness most
clearly during times of turbu-
lence and change, because they allow for the speedy
development of solutions to problems
and require no command and control structure to accomplish
work (McPhee & Poole, 2000).
7.7 Direction of Communication
Communication within an organization can flow vertically
(from the leader to the follower
and vice versa), laterally (from one peer to another), or
diagonally (from a leader to a follower
in another area of the organization and vice versa).
Traditionally, organizations have placed
greater emphasis on vertical communication, but that is no
longer the case. As organizations
have become more complex, so has their communication,
making lateral and diagonal forms
increasingly important.
65. engage in downward com-
munication frequently, they generally do not do it well. Based
on a survey of 30,000 employ-
ees, Morgan and Schieman (1983) found that a majority of the
workers felt their organization
was ineffective at communicating down to them. The lowest
level employees—those who
probably received the least amount of communication—felt the
most negative about the com-
munication they did receive.
Organizations can improve downward communication in a
number of ways. One relatively
simple way is to provide employees with explanations as to why
leaders made the decisions
they did. In one study, employees were twice as likely to
commit to a decision if they under-
stood the reason behind it (Dvorak, 2007b). Another way to
improve downward communi-
cation is to try to counteract its one-way nature by encouraging
followers to provide input
and opinions. The best downward communication, then, occurs
when a leader explains the
reasons for decisions and gathers input from his or her
employees.
Upward Vertical Communication
Upward vertical communication flows from a lower to a higher
level of a work group.
Employees use this method to inform management of the status
of projects, to express feed-
back, and to alert management of goal attainment. Organizations
have established a number
of formal ways for employees to engage in upward
communication, including employee sur-
veys, grievance programs, suggestion boxes, and employee
67. 222
Section 7.8 Special Issues and Challenges in Organizational
Communication
Diagonal Communication
Diagonal communication flows between managers and workers
located in different parts
of the business (Wilson, 1992). As communication has changed
within the modern organiza-
tion, diagonal communication has emerged as an important
method of communication. The
concept was originally introduced to address the communication
challenges associated with
new organizational formats, such as matrix and project-based
organizations.
7.8 Special Issues and Challenges in Organizational
Communication
Think about how communication within organizations has
changed over the past three
decades. Several decades ago, it was relatively slow and
involved a lot of physical effort, as
managers made requests (and left a lot of messages), and
employees searched for informa-
tion (making false starts, traveling circuitous routes, hitting
dead ends, and also leaving many
messages). Managers’ main concern was sharing information
through a formal top-down
communication system. Today communication is not only much
more interconnected and
varied, but faster as well. Modern workers have a world of
information at their fingertips;
they can access libraries, newspapers, research publications,
encyclopedias, and more from
68. their computers instead of having to physically visit the library
or wait for information to
arrive by courier or in the mail.
Technological Changes
Advanced information technology allows organizations
unprecedented opportunities to openly and quickly com-
municate and exchange ideas, which can enhance cre-
ativity, innovation, customer satisfaction, and employee
engagement. However, there are also problems with the
excessive use of electronic media for communication.
First, despite the ease of modern forms of communica-
tion, being connected to one’s job 24 hours a day—as
many of today’s employees are—can result in an overload
of communication. Second, ongoing electronic communi-
cation can upset work–life balance, because an employee
with a company-issued cell phone is never really off the
clock. Third, electronic communication threatens to vio-
late employee privacy, because many devices today are
equipped with a Global Positioning System (GPS) track-
ing device, making employees’ whereabouts traceable at
all times. Fourth, the risks of industrial espionage and
intellectual property pirating are exacerbated by tech-
nology and electronic communication. Finally, when
electronic communication replaces richer media such as
face-to-face interaction, leaders and employees can feel
distant and estranged, making it harder to relate to each
other and build trust.
Photos.com/Thinkstock
Communication is faster and
more interconnected than ever
before, thanks to advances in
information technology. As a
result, it has never been easier
70. Cross-Cultural and Gender Differences
Increasing diversity in the workplace poses its own set of
unique communication challenges.
Indeed, cross-cultural differences can shape our perceptions and
interpretations of commu-
nicated messages. On the other hand, contrary to common
beliefs, gender differences in com-
munication are not as prevalent (Aries, 1996). The very large
within-group variations in men
and women’s communication styles most likely account for the
inconsistent and inconclusive
research findings in this area (Reeder, 1996).
While some of the most recognized cross-cultural differences
are covered in this section, this
is by no means an exhaustive list of issues to consider.
Hofstede’s National Cultural Dimensions
The national culture model (Hofstede, Hofstede, & Minkov,
2010) was established after Profes-
sor Geert Hofstede and his research team analyzed value scores
reported by IBM employees
in 40 countries. Hofstede found that employees’ preferences in
relation to six specific cultural
dimensions could be used to distinguish countries and their
values from one another. These
six dimensions are power distance, individualism, masculinity,
uncertainty avoidance, long-
term orientation, and indulgence. Table 7.2 further defines and
compares these dimensions.
As you can see from Table 7.2, the way societies relate to
specific cultural dimensions can
affect how that society communicates internally as well as
externally. Consider, for example,
how a businessperson from a culture with a low degree of
72. Trompenaars’s Four Diversity Cultures
Trompenaars also developed another model for understanding
cultural differences, known
as the four diversity cultures. Rather than comparing cultures
over a range of seven differ-
ences, however, the four diversity cultures model establishes
two major dimensions: person/
Table 7.2: National cultural dimensions
Dimension Description
Cultures with high
degree of dimension
Cultures with low
degree of dimension
Power distance The degree to which
members of a society
accept and expect that
power is distributed
unequally
Accept a hierarchical
order in which every-
body has a place and
which needs no further
justification
Strive to equalize the
distribution of power
and demand justifica-
tion for inequalities of
power
Individualism The degree to which
73. members of a society
depend on one another
to provide care; can be
detected in whether
people define their self-
image as “I” or as “we”
Prefer a loosely knit
social framework in
which individuals are
expected to take care
of only themselves
and their immediate
families
Prefer a tightly knit
societal framework in
which individuals can
expect their relatives or
members of a par-
ticular in-group to look
after them in exchange
for unquestioning
loyalty
Masculinity The degree to which
a society is more
competitive or
consensus-oriented
Prefer achievement,
heroism, assertiveness,
and material rewards
for success
Prefer cooperation,
74. modesty, caring for the
weak, and quality of life
Uncertainty avoidance The degree to which
members of a soci-
ety feel comfortable
with uncertainty and
ambiguity
Maintain rigid codes
of belief and behavior
and are intolerant of
unorthodox behavior
and ideas
Maintain a more
relaxed attitude in
which practice counts
more than principles
Long-term orientation The degree to which a
society maintains links
with its own past while
dealing with the chal-
lenges of the present
and the future
Encourage careful
use of resources and
modern education as a
way to prepare for the
future
Prefer to maintain
established traditions
and norms while view-
76. Differences Description
Cultures with a high
degree of Trait A
Cultures with a high
degree of Trait B
Trait A: universalism
vs.
Trait B: particularism
The degree to which a
culture applies ideas
and practices
Focus on broad,
general rules that
can be applied to all
situations; tend to be
more rational and task
focused
Focus on applying
rules on a case-by-
case basis; tend to
place greater empha-
sis on relationships
Trait A: individualism
vs.
Trait B: communitarianism
The degree to which
members of a culture
regard themselves
77. as part of their
community
People regard
themselves primar-
ily as individuals;
focus on individual
contributions and
achievements
People regard them-
selves primarily as
part of a group; focus
on community first
Trait A: neutral
vs.
Trait B: affective
The degree to which
our interactions
should include
emotion
Typically prefer objec-
tive and/or detached
interactions
Expect emotion to be
part of all interactions,
including in business
Trait A: specific
vs.
Trait B: diffuse
78. The degree to which
the whole person
is involved in an
interaction
Tend to adhere to a
specific relationship,
such as one pre-
scribed by a contract
Emphasize the
importance of build-
ing a relationship that
encompasses more
than the immediate
goal
Trait A: achievement
vs.
Trait B: ascription
The way in which a
society acknowledges
status
Acknowledge status
based on recent
accomplishments and
record
Acknowledge status
based on birth, kin-
ship, gender, age,
connections, and
educational record
79. Trait A: sequential
vs.
Trait B: synchronic
The way in which
society views time
View time as moving
along a straight line;
focus on the pres-
ent and plans for the
future
View time as moving
in a circle; past and
present are consid-
ered alongside future
possibilities
Trait A: internal
vs.
Trait B: external
The way in which
society views its
relationship to the
environment
See motivation, val-
ues, and other major
aspects affecting
individuals as coming
from within
See the environment
as affecting individual
81. - Task orientation
- Power of knowledge/expertise
- Commitment to (tasks)
- Management by objectives
- Pay for performance
Guided missile
Egalitarian/decentralized
Egalitarian/decentralized
Person/
informal style
Task/
formal style
- Power of orientation
- Personal relationships
- Entrepreneurial
- Affinity/trust
- Power of person
Family
- Role orientation
- Power of position/role
- Job description/evaluation
- Rules and procedures
- Order and predictability
Eiffel Tower
Section 7.8 Special Issues and Challenges in Organizational
Communication
82. These culture types have notable organizational implications.
For example, leaders need to
be aware of the type of culture in which they operate and must
adapt their leadership style
accordingly. A leadership style that relies on formal power,
authority, and structure may be
effective in Eiffel Tower cultures but may be overbearing and
counterproductive in an incuba-
tor culture. Similarly, many North American multinationals
attempt to introduce guided mis-
sile principles in countries that are predominantly hierarchical
and reliant on personal rela-
tionships (family cultures). This misfit tends to create conflict
and promote an “us-and-them”
mentality between leaders from the parent company and locals
who may perceive them, at
best, as culturally naive or incompetent and, at worst, as
condescending and imposing on
their cultural heritage.
Figure 7.4: Trompenaars’ four diversity cultures
- Person oriented
- Power of the individual
- Self-realization
- Commitment to oneself
- Professional recognition
Incubator
- Task orientation
- Power of knowledge/expertise
- Commitment to (tasks)
- Management by objectives
- Pay for performance
83. Guided missile
Egalitarian/decentralized
Egalitarian/decentralized
Person/
informal style
Task/
formal style
- Power of orientation
- Personal relationships
- Entrepreneurial
- Affinity/trust
- Power of person
Family
- Role orientation
- Power of position/role
- Job description/evaluation
- Rules and procedures
- Order and predictability
Eiffel Tower
Find Out for Yourself: Culture and Leader Effectiveness:
The GLOBE Study
The Global Leadership and Organizational Behavior
Effectiveness (GLOBE) Research Program
studies the intersection between leader characteristics and many
of the cultural dimensions