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Chapter 10
Leader-Member Relationships
Limitations of Leadership
Theory and Research
• Executive Leadership
• Leadership in the Dyad
• The Leader as Individual
Traditional Perspective
• Theories of Leadership Behavior
• Leadership as Development
• Motivation and Control
• Satisfaction and Communication Climate
• The Motivational Limits of Leadership and
Supervision
• Member Behavior Toward Leaders
Theories of Leadership
Behavior
• Leadership as Trait
• Leadership as Style
• Situational Theory
• Leader-Member Exchange Theory
Leadership as Trait
• The earliest theories of leadership attempted
to distinguish leaders from non-leaders on the
basis of certain personality traits (intelligence,
responsibility, character and others)
• Years of trait research have not produced any
agreement about their relevance to
leadership
Leadership as Style
• Early Style Theory
• The Leadership Grid™
• Transformational Leadership
Early Style Theory
• Laissez-faire
• Authoritarian
• Democratic
The Leadership Grid™
Blake and McCanse (1991)
Managerial/Leadership Styles as a product
of:
• Concern for Production (1-9 range)
• Concern for People (1-9 range)
Model yields eight styles, Five are discussed
in grid
The Leadership Grid™
• Impoverished (1,1)
• Authority-Obedience (9,1)
• Country Club (1,9)
• Middle-of-the-road (5,5)
• Team Leader (9,9)
Transformational
Leadership
• Based on exchange principles, i.e., by
providing rewards that are contingent on
accomplishing goals and complying with
leadership
• Transformational leaders change members’
values by motivating them to perform beyond
expectations
Transformational
Leadership
• Eight leadership styles that differ from earlier
stylistic models in at least three respects
– The styles are assumed to operate on a
continuum of performance effectiveness
– Any given manager or leader may exhibit any or
all of the styles
– While traditional leadership theories rely on
concepts of rational processes, transformational
theory is concerned with emotions, values,
symbolic behavior, and the role of the leader in
making events meaningful for followers
Transformational
Leadership
Least Effective/Marginal Performance
• Laissez-faire
• Passive Management-by-exception
• Active Management-by-exception
Produces Performance at Required Levels
• Contingent Reward
Transformational
Leadership
Progressively Produces Performances
Beyond Expectations
• Individualized consideration
• Intellectual stimulation
• Inspirationally motivating style
• Idealized influence
Situational Theory
Three Factors Influence Leader Effectiveness
• Leader-member relations: the degree of
confidence and trust that members have in the
leader.
• Task structure: the degree of certainty and
routine as opposed to ambiguity and
unpredictability in the task
• Position power: the influence inherent in the
leadership role (legitimate authority and ability to
reward or punish)
Situational Theory
Fiedler’s Studies
Directive or permissive styles of leadership
should be chosen based on varying
conditions of leader-member relations, task
structure, and position power
Leader-Member
Exchange [LMX] Theory
• Rather than behaving in a consistent manner
toward all group members, leaders discriminate
significantly in their behavior toward members
– In-Group Members: worked under conditions of
mutual trust, influence, and support with the
manager
– Out-Group Members: worked under conditions
involving low trust and support along with exercise
of the manager's formal authority
– Middle-Group Members: fall between the
conditions of in-group and out-group members
LMX Theory
Leader-Member Communication
• In-group communication emphasized
supportiveness, collegiality, and similarity.
• Out-group leader-member exchange involved
face threats and competitive conflict, implying an
openly contentious and adversarial relationship.
• Middle groups reflected both accommodating
and polarizing interactions [Fairhurst, 1993]
LMX Theory
• Some recent LMX research has taken a
prescriptive turn, suggesting that LMX can
range from high to low in quality, and the
level of exchange quality predicts a variety of
positive outcomes (Hochwarter, 2005)
• An unresolved issue in LMX research is
whether leaders should or should not
differentiate among their members
Leadership as Development
• Mentors lead protégés in a developmental sense
• A mentor may be a protégé's immediate
superior, however, the mentor frequently
occupies another role (e.g., a higher-level
manager or a more experienced peer at the
same level of the organization).
• The mentor role entails teaching, guidance,
counseling, appraisal, and other developmental
activities, including sponsorship and promotion
of the protégé's career advancement
Motivation and Control
• Management promotes compliance by
promoting morale and satisfaction
• Morale and satisfaction depend on
effective interpersonal relations;
namely, empathy, sensitivity to social
needs, receptivity, and two-way
communication
Satisfaction and
Communication Climate
• Defensive Communication Climate
– Evaluation, Control, Strategy, Neutrality,
Superiority, Certainty
• Supportive Communication Climate
– Description, Problem-Orientation, Spontaneity,
Empathy, Equality, Provisionalism
• Supportive, “people-oriented” styles of
communication promote satisfaction
Motivational Limits of
Leadership and Supervision
• Employee job satisfaction depends on a
complex set of relationships among
several factors
• Job satisfaction was negatively related to
role ambiguity and positively related to
fatigue that employees experienced
• Apparently, satisfying work is tiring work
[Ray & Miller, 1991]
Motivational Limits of
Leadership and Supervision
Herzberg’s Motivator-Hygiene Theory
• Satisfaction and dissatisfaction are not opposite
conditions. The opposite of satisfaction is simply
the absence of satisfaction.
• The factors that lead to job satisfaction and,
therefore, to motivation are different from the
factors that lead to job dissatisfaction.
• The satisfiers are called motivators, and the
dissatisfiers are called hygiene factors
Herzberg’s Motivator-
Hygiene Theory
Motivators:
• Achievement
• Recognition
• Advancement
• The work itself
• Responsibility
• Potential for personal growth
Herzberg’s Motivator-
Hygiene Theory
Hygiene Factors
• Policy and administration
• Technical supervision
• Relationships with supervisor
• Relationships with peers
• Relationships with subordinates
• Salary
• Job security
• Personal life
• Work conditions
• Status
Herzberg’s Motivator-
Hygiene Theory
• Failure to provide for members' hygiene needs will
lead to job dissatisfaction and poor performance,
but merely meeting these needs does not produce
motivation to improve performance
• Positive relationships between leaders and
members may prevent dissatisfaction, but
relationship quality will not lead to better
performance
• Better performance depends on incorporating the
six motivators into the work environment
Member Behavior
Toward Leaders
• Feedback and Distortion
• Upward Influence
Feedback and Distortion
• As mobility aspirations go up, accuracy
goes down
• Increased trust is associated with
increased accuracy
• Distortion is more likely to occur in rigid,
machinelike organizational climates
than in open, “organic” climates [Young,
1978]
Feedback and Distortion
• Members are more likely to distort
unfavorable information in a task situation
• Members relay unfavorable information more
accurately than favorable information in a
non-task situation
• Pratfall Effect: a person's admission of errors
or mistakes actually increases his or her
credibility with others [Krivonos, 1982]
Upward Influence
• Members in high quality LMX conditions used
open, logic-based tactics rather than covert,
deceptive tactics in the attempts to influence
leaders [Krone, 1992]
• One benefit for leaders in fostering
undifferentiated, high quality LMX may be
that members are likely to be more honest,
direct, and reasonable with attempts at
influencing those leaders
Upward Influence
• Followers working under participative
styles of leadership tended to use
reasoning tactics in upward influence
attempts [Ansari & Kapoor, 1987]
• Where leadership style is low in both
initiation and consideration (i.e., laissez-
faire), members will use so-called hard
tactics [Chacko, 1990]
Interpretive Perspective
• Leadership, Structure, and Meaning
• Leadership and Ethics
Leadership, Structure,
and Meaning
• Vallaster and de Chernatony (2006) studied
how organization members align their actions
with the identity of the organization in a
corporate context.
• The term, brand, refers to corporate identify
and internal brand building refers to the
alignment process.
Leadership, Structure,
and Meaning
• Successful leaders consistently and repeatedly
communicate messages to employees about
the brand identity and commitment to living the
brand’s promise
• By showing their own commitment to the brand
values and identify, successful leaders act as
facilitators between structures and individuals,
creating a framework that encourages brand
supporting employee behaviors
Leadership and Ethics
Leader Responsibilities
• Communicating appropriate values to create
a moral climate
• Maintaining adequate communication to be
informed of organizational operations
• Maintaining openness to signs of problems
Leadership and Ethics
Enron’s Unethical Leaders
• Ken Lay and Jeff Skilling modeled values of
privilege, wealth, and arrogance, and the
acceptability of power abuse and rule breaking
when it suits one’s ends to do so
• Andy Fastow, the chief financial officer,
concocted schemes to hide Enron’s debt
• Enron’s energy traders manipulated electricity
supplies to spike prices in California and
flourished in a culture of corruption
Critical Theory
• Leader as Individual Agent
• Leadership Discourse in General
• The Discourse of Resistance
Leader as Individual Agent
• Harrison and Young (2005) studied the government
agency that administers Canada’s system of socialized
health care
• The agency was subjected to a major reorganization,
including formation of an entirely new and large branch
over a four-month period
• They studied the discourse of the person who was
appointed to lead the new branch in an effort to
understand how a leader’s concealed messages
contribute to the success or failure of discursive events,
specifically at a time of organizational transformation
Leader as Individual Agent
• The leader used a concealment strategy
regarding “hot issues” involved in the
reorganization by depersonalizing decisions
about those issues
• The leader’s offer at the outset of a seemingly
participatory system was interpreted as a
sham, and people knew they were being
moved around like pawns on a chessboard
Leadership Discourse in
General
Managerial pseudo-jargon: Terms and phrases that
one does not generally hear in ordinary language
outside corporations and institutions
Thinking Outside the Box Tasked With
Repurposed Strategic Vision
Customer Focused Rightsizing
Driving Forward the Mission Value-Added
Performance Metrics Seamless Process
Managerial Pseudo-Jargon
• Use metaphors to make abstract aspects of
organizational life seem to be concrete
– Sports metaphors, e.g., hit a home run, scoring
inside the red zone, and playing hurt
• Use language to reinforce and legitimize the
power of leadership and management
– Selecting the right metrics to assess effective
leveraging of resources in an integrated process to
realize the strategic vision (sounds authoritative)
Discourse of Resistance
• Members may resist the efforts of
leaders to influence and control them
• Resistance studies focus on the
communicative actions of members

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Ch10

  • 2. Limitations of Leadership Theory and Research • Executive Leadership • Leadership in the Dyad • The Leader as Individual
  • 3. Traditional Perspective • Theories of Leadership Behavior • Leadership as Development • Motivation and Control • Satisfaction and Communication Climate • The Motivational Limits of Leadership and Supervision • Member Behavior Toward Leaders
  • 4. Theories of Leadership Behavior • Leadership as Trait • Leadership as Style • Situational Theory • Leader-Member Exchange Theory
  • 5. Leadership as Trait • The earliest theories of leadership attempted to distinguish leaders from non-leaders on the basis of certain personality traits (intelligence, responsibility, character and others) • Years of trait research have not produced any agreement about their relevance to leadership
  • 6. Leadership as Style • Early Style Theory • The Leadership Grid™ • Transformational Leadership
  • 7. Early Style Theory • Laissez-faire • Authoritarian • Democratic
  • 8. The Leadership Grid™ Blake and McCanse (1991) Managerial/Leadership Styles as a product of: • Concern for Production (1-9 range) • Concern for People (1-9 range) Model yields eight styles, Five are discussed in grid
  • 9. The Leadership Grid™ • Impoverished (1,1) • Authority-Obedience (9,1) • Country Club (1,9) • Middle-of-the-road (5,5) • Team Leader (9,9)
  • 10. Transformational Leadership • Based on exchange principles, i.e., by providing rewards that are contingent on accomplishing goals and complying with leadership • Transformational leaders change members’ values by motivating them to perform beyond expectations
  • 11. Transformational Leadership • Eight leadership styles that differ from earlier stylistic models in at least three respects – The styles are assumed to operate on a continuum of performance effectiveness – Any given manager or leader may exhibit any or all of the styles – While traditional leadership theories rely on concepts of rational processes, transformational theory is concerned with emotions, values, symbolic behavior, and the role of the leader in making events meaningful for followers
  • 12. Transformational Leadership Least Effective/Marginal Performance • Laissez-faire • Passive Management-by-exception • Active Management-by-exception Produces Performance at Required Levels • Contingent Reward
  • 13. Transformational Leadership Progressively Produces Performances Beyond Expectations • Individualized consideration • Intellectual stimulation • Inspirationally motivating style • Idealized influence
  • 14. Situational Theory Three Factors Influence Leader Effectiveness • Leader-member relations: the degree of confidence and trust that members have in the leader. • Task structure: the degree of certainty and routine as opposed to ambiguity and unpredictability in the task • Position power: the influence inherent in the leadership role (legitimate authority and ability to reward or punish)
  • 15. Situational Theory Fiedler’s Studies Directive or permissive styles of leadership should be chosen based on varying conditions of leader-member relations, task structure, and position power
  • 16. Leader-Member Exchange [LMX] Theory • Rather than behaving in a consistent manner toward all group members, leaders discriminate significantly in their behavior toward members – In-Group Members: worked under conditions of mutual trust, influence, and support with the manager – Out-Group Members: worked under conditions involving low trust and support along with exercise of the manager's formal authority – Middle-Group Members: fall between the conditions of in-group and out-group members
  • 17. LMX Theory Leader-Member Communication • In-group communication emphasized supportiveness, collegiality, and similarity. • Out-group leader-member exchange involved face threats and competitive conflict, implying an openly contentious and adversarial relationship. • Middle groups reflected both accommodating and polarizing interactions [Fairhurst, 1993]
  • 18. LMX Theory • Some recent LMX research has taken a prescriptive turn, suggesting that LMX can range from high to low in quality, and the level of exchange quality predicts a variety of positive outcomes (Hochwarter, 2005) • An unresolved issue in LMX research is whether leaders should or should not differentiate among their members
  • 19. Leadership as Development • Mentors lead protégés in a developmental sense • A mentor may be a protégé's immediate superior, however, the mentor frequently occupies another role (e.g., a higher-level manager or a more experienced peer at the same level of the organization). • The mentor role entails teaching, guidance, counseling, appraisal, and other developmental activities, including sponsorship and promotion of the protégé's career advancement
  • 20. Motivation and Control • Management promotes compliance by promoting morale and satisfaction • Morale and satisfaction depend on effective interpersonal relations; namely, empathy, sensitivity to social needs, receptivity, and two-way communication
  • 21. Satisfaction and Communication Climate • Defensive Communication Climate – Evaluation, Control, Strategy, Neutrality, Superiority, Certainty • Supportive Communication Climate – Description, Problem-Orientation, Spontaneity, Empathy, Equality, Provisionalism • Supportive, “people-oriented” styles of communication promote satisfaction
  • 22. Motivational Limits of Leadership and Supervision • Employee job satisfaction depends on a complex set of relationships among several factors • Job satisfaction was negatively related to role ambiguity and positively related to fatigue that employees experienced • Apparently, satisfying work is tiring work [Ray & Miller, 1991]
  • 23. Motivational Limits of Leadership and Supervision Herzberg’s Motivator-Hygiene Theory • Satisfaction and dissatisfaction are not opposite conditions. The opposite of satisfaction is simply the absence of satisfaction. • The factors that lead to job satisfaction and, therefore, to motivation are different from the factors that lead to job dissatisfaction. • The satisfiers are called motivators, and the dissatisfiers are called hygiene factors
  • 24. Herzberg’s Motivator- Hygiene Theory Motivators: • Achievement • Recognition • Advancement • The work itself • Responsibility • Potential for personal growth
  • 25. Herzberg’s Motivator- Hygiene Theory Hygiene Factors • Policy and administration • Technical supervision • Relationships with supervisor • Relationships with peers • Relationships with subordinates • Salary • Job security • Personal life • Work conditions • Status
  • 26. Herzberg’s Motivator- Hygiene Theory • Failure to provide for members' hygiene needs will lead to job dissatisfaction and poor performance, but merely meeting these needs does not produce motivation to improve performance • Positive relationships between leaders and members may prevent dissatisfaction, but relationship quality will not lead to better performance • Better performance depends on incorporating the six motivators into the work environment
  • 27. Member Behavior Toward Leaders • Feedback and Distortion • Upward Influence
  • 28. Feedback and Distortion • As mobility aspirations go up, accuracy goes down • Increased trust is associated with increased accuracy • Distortion is more likely to occur in rigid, machinelike organizational climates than in open, “organic” climates [Young, 1978]
  • 29. Feedback and Distortion • Members are more likely to distort unfavorable information in a task situation • Members relay unfavorable information more accurately than favorable information in a non-task situation • Pratfall Effect: a person's admission of errors or mistakes actually increases his or her credibility with others [Krivonos, 1982]
  • 30. Upward Influence • Members in high quality LMX conditions used open, logic-based tactics rather than covert, deceptive tactics in the attempts to influence leaders [Krone, 1992] • One benefit for leaders in fostering undifferentiated, high quality LMX may be that members are likely to be more honest, direct, and reasonable with attempts at influencing those leaders
  • 31. Upward Influence • Followers working under participative styles of leadership tended to use reasoning tactics in upward influence attempts [Ansari & Kapoor, 1987] • Where leadership style is low in both initiation and consideration (i.e., laissez- faire), members will use so-called hard tactics [Chacko, 1990]
  • 32. Interpretive Perspective • Leadership, Structure, and Meaning • Leadership and Ethics
  • 33. Leadership, Structure, and Meaning • Vallaster and de Chernatony (2006) studied how organization members align their actions with the identity of the organization in a corporate context. • The term, brand, refers to corporate identify and internal brand building refers to the alignment process.
  • 34. Leadership, Structure, and Meaning • Successful leaders consistently and repeatedly communicate messages to employees about the brand identity and commitment to living the brand’s promise • By showing their own commitment to the brand values and identify, successful leaders act as facilitators between structures and individuals, creating a framework that encourages brand supporting employee behaviors
  • 35. Leadership and Ethics Leader Responsibilities • Communicating appropriate values to create a moral climate • Maintaining adequate communication to be informed of organizational operations • Maintaining openness to signs of problems
  • 36. Leadership and Ethics Enron’s Unethical Leaders • Ken Lay and Jeff Skilling modeled values of privilege, wealth, and arrogance, and the acceptability of power abuse and rule breaking when it suits one’s ends to do so • Andy Fastow, the chief financial officer, concocted schemes to hide Enron’s debt • Enron’s energy traders manipulated electricity supplies to spike prices in California and flourished in a culture of corruption
  • 37. Critical Theory • Leader as Individual Agent • Leadership Discourse in General • The Discourse of Resistance
  • 38. Leader as Individual Agent • Harrison and Young (2005) studied the government agency that administers Canada’s system of socialized health care • The agency was subjected to a major reorganization, including formation of an entirely new and large branch over a four-month period • They studied the discourse of the person who was appointed to lead the new branch in an effort to understand how a leader’s concealed messages contribute to the success or failure of discursive events, specifically at a time of organizational transformation
  • 39. Leader as Individual Agent • The leader used a concealment strategy regarding “hot issues” involved in the reorganization by depersonalizing decisions about those issues • The leader’s offer at the outset of a seemingly participatory system was interpreted as a sham, and people knew they were being moved around like pawns on a chessboard
  • 40. Leadership Discourse in General Managerial pseudo-jargon: Terms and phrases that one does not generally hear in ordinary language outside corporations and institutions Thinking Outside the Box Tasked With Repurposed Strategic Vision Customer Focused Rightsizing Driving Forward the Mission Value-Added Performance Metrics Seamless Process
  • 41. Managerial Pseudo-Jargon • Use metaphors to make abstract aspects of organizational life seem to be concrete – Sports metaphors, e.g., hit a home run, scoring inside the red zone, and playing hurt • Use language to reinforce and legitimize the power of leadership and management – Selecting the right metrics to assess effective leveraging of resources in an integrated process to realize the strategic vision (sounds authoritative)
  • 42. Discourse of Resistance • Members may resist the efforts of leaders to influence and control them • Resistance studies focus on the communicative actions of members