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Running head: JOB SATISFACTION IN PHILIPPINES 1
JOB SATISFACTION IN PHILIPPINES 2
JOB SATISFACTION IN PHILIPPINES
Name
Course title
Institution
According to this article Philippines are less happy at work
even though most of them look forward to career development.
This unhappiness is attributed to lack of career development,
lack of training opportunities and organizations’ management
styles. Job dissatisfaction has continued to go down as it was
4.97 in 2016 while in 2017 it was 5.25.
In a survey that was conducted with the aim of knowing what
would make people more satisfied with their jobs most people
mentioned pay rise while others insisted that they would like to
leave their jobs and get new ones. Good relationship with
colleagues was the only reason why they were still in their jobs.
The extent to which workers were dissatisfied was different
depending on workers age and professional stage. Those
workers who were born before 1960 were found happier
compared to those born after 1995. In terms of position those at
the executive level were found to be more satisfied compared
followed by new graduates.
For the baby boomers were happy about a job because of the
schedule while the younger were interested in work location and
work relationships. Older employees are dissatisfied due to lack
of training, career development, and low wages. The managers
need to communicate with employees on what factors would
boost their job satisfaction.
Job satisfaction in Philippines is very different compared to US.
In US 51% of all employees are satisfied while in Philippines
job satisfaction is very low. Philippines can borrow much from
what US has done to ensure that workers are satisfied with their
jobs. The similarity in the two countries is that the rate of job
satisfaction has been declining in the recent past. Philippines
have much to learn from US than it is for US to learn from
Philippines.
Philippines can make sure that its labor markets are tight to
ensure low layoff rates. It can also improve working conditions
and increase opportunities for its labor markets. As baby
boomers continue to retire labor demand will go up and the
rates of job satisfaction would go up.
Relationships are also important in ensuring job satisfaction. To
ensure this there should be good relationships with coworkers,
supervisors and their physical work environment. Job quality is
also a mechanism of increasing job satisfaction. Employees
should be given opportunities to develop their careers and be
taken through trainings. They should also be given quality pay
for their work and have good benefits e.g. health and retirement
benefits.
For both countries, there must be communication with the
employees to identify what things make them be dissatisfied
with their jobs and something can be done to improve the
situation. The labor market should be looked into if the
situation has to improve.
Reference
https://cnnphilippines.com/news/2017/10/25/Filipinos-work-
satisfaction-jobstreet.html
http://fortune.com/2017/09/01/job-satisfaction-highest-since-
2005/
Essentials of Organizational Behavior
Fourteenth Edition
Chapter 12
Leadership
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
1
After studying this chapter you should be able to:
Summarize the conclusions of trait theories of leadership.
Identify the central tenets and main limitations of behavioral
theories.
Contrast contingency theories of leadership.
Describe the contemporary theories of leadership and their
relationship to foundational theories.
Discuss the roles of leaders in creating ethical organizations.
Describe how leaders can have a positive impact on their
organizations through building trust and mentoring.
Identify the challenges to our understanding of leadership.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
What Is Leadership?
Leadership: The ability to influence a group toward the
achievement of a vision or a set of goals
Trait theories of leadership: focus on personal qualities and
characteristics
Leadership emergence
Leadership effectiveness
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Leadership is the ability to influence a group toward the
achievement of goals.
The trait theories of leadership focus on personal qualities like
those in the Big Five and characteristics that predict two
distinct outcomes: leadership emergence and leadership
effectiveness.
3
Trait Theories of Leadership
Two conclusions:
Traits can predict leadership
Traits do a better job predicting the emergence of leaders and
the appearance of leadership than distinguishing between
effective and ineffective leaders
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The fact that an individual exhibits the right traits and that
others consider him a leader does not necessarily mean he will
be an effective leader who is successful at getting the group to
achieve its goals.
4
Personality Traits and Leadership
Big Five Traits
Extraversion has strongest relation to leadership
Conscientiousness and openness to experience also strongly
relate to leadership
Agreeableness and emotional stability are not correlated with
leadership
Dark Side Traits
Normative scores on Machiavellianism, narcissism, and
psychopathy are optimal
Emotional intelligence
EI contributes to emergence of leaders
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Some essential leadership traits include extraversion,
conscientiousness, openness, and agreeableness. Research
shows that the Dark Side personality traits of Machiavellianism,
narcissism, and psychopathy are not all bad for leadership.
Higher scores on Dark Side traits and emotional stability can
contribute to the emergence of leadership. Finally, emotional
intelligence or EI has been linked with leadership effectiveness,
especially with regard to empathy, a core component of EI.
Leaders with empathy are able to sense others’ needs, listen to
their followers, and read the reactions of others.
5
Behavioral Theories
Behavioral theories of leadership: we can determine leadership
effectiveness by leader behavior, and perhaps train people to be
leaders
The Ohio State Studies
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The behavioral theories of leadership focus on the premise that
behaviors can be taught and traits cannot, so leaders are trained,
not born.
6
Ohio State Studies
Attempts to organize work, work relationships, and goals
Concern for followers’ comfort, well-being, status, and
satisfaction
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
A key study in the area of behavioral leadership advanced our
understanding of the theory. The research was done at the Ohio
State University. Researchers looked at important dimensions of
leadership behavior and began with over 1,000 dimensions. In
the end, the Ohio State studies were able to narrow it down to
two dimensions – initiating structure and consideration.
Initiating structure is when the leader is able to define and
structure their role and that of their employees to work toward
the goals of the organization. Consideration is the ability of the
leader to gain the trust and respect of their followers and to help
them feel appreciated for what they do. Both behaviors have
proven to be very important in an effective leader.
7
Initiating Structure
Consideration
Cultural Differences
GLOBE Leadership Project Results:
Brazil – Leaders are participative and humane
France – Leaders are bureaucratic, task oriented, and autocratic
China – Initiating structure and consideration important: status
differences but participation valued
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The GLOBE study suggests that there are differences across
cultures in the preference for initiating structure and
consideration.
8
Contingency Theories
Fiedler leadership model: Effective group performance depends
on the proper match between the leader’s style and the degree to
which the situation gives the leader control
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
In this theory, Fielder is trying to match the leader to the
context. He proposes that leadership style is fixed. So, if the
situation demands a charismatic leader and your current leader
does not exhibit that style, you need to change leaders.
9
Fiedler Leadership Model
Least-Preferred Co-worker (LPC) determines leadership style
(fixed trait)
Relationship oriented
Task oriented
Match leader’s style with degree of situational control
Leader-member relations
Task structure
Position power
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Leadership style can be determined by taking the LPC
questionnaire (least preferred co-worker).
After the leadership style is determined you can match the
leader to the situation. There are three dimensions to finding a
successful match. The first situational factor is the leader-
member relationship; this ties back to our behavioral studies by
looking at the degree of trust and respect employees have for
the leader. The second factor is the amount of structure that is
embedded in job assignments. The last factor is the amount of
influence the leader has over decisions that represent power
such as hiring, firing, and rewards.
In Fiedler’s model, you need to find a leader to fit the situation
or change the situation to fit the leader in order to achieve
effective leadership for the organization.
10
Matching Leaders to Situations
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This graph helps to visually determine the situational factors
and what type of leader would succeed in this situation. There
are eight possible situations in which leaders can find
themselves. By matching their LPC score with these eight
different situations a leader can see where they will be most
effective. For example, categories four through six would be
better suited to relationship-oriented leaders because Fielder
proposes that they perform best in moderately favorable
situations.
11
Situational Leadership Theory
Situational leadership theory (SLT): successful leadership
depends on selecting the right leadership style, contingent on
the followers’ readiness to accomplish a task
Unable and unwilling
Unable but willing
Able but unwilling
Able and willing
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
SLT acknowledges the importance of followers and builds on
the logic that leaders can compensate for their limited ability
and motivation.
12
Path–Goal Theory
Path–goal theory: it’s the leader’s job to provide followers with
information, support, or other resources necessary to achieve
goals
Directive leadership yields greater satisfaction when tasks are
ambiguous or stressful
Supportive leadership results in high performance and
satisfaction when tasks are structured
Directive leadership is perceived as redundant by employees
with high ability or experience
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Effective leaders clarify followers’ paths to their work goals
and make the journey easier by reducing roadblocks.
Directive or supportive leadership does matter to followers’
performance, and leaders need to be aware of their important
facilitating role.
The effectiveness of leaders depends to a large degree on their
followers.
13
Leader-Participation Model
Leader-participation model: provides a set of rules to determine
the form and amount of participative decision making in
different situations
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The way the leader makes decisions is as important as what he
or she decides. Leader behavior must adjust to reflect the task
structure.
14
Leader-Member Exchange
Leader-member exchange (LMX) theory: supports leaders’
creation of ingroups and outgroups
Subordinates with ingroup status will likely have higher
performance ratings, less turnover, and greater job satisfaction
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
LMX argues that leaders, because of time pressures, tend to
establish special relationships with a small group of followers
who then become their ingroup. In this capacity, they enjoy a
disproportionate share of the leader’s attention, greater trust,
and special privileges.
15
LMX Theory
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Rights Reserved.
Research shows that ingroup members have demographic,
attitude, and personality characteristics similar to those of their
leaders or a higher level of competence than outgroup members.
16
Charismatic Leadership
Charismatic leadership theory: Attributions of heroic leadership
abilities when followers observe certain behaviors
Vision and articulation
Personal risk taking
Sensitivity toward followers
Unconventional behaviors
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Charisma comes from the Greek word meaning “gift”. When
talking about a charismatic leader, one refers to someone with
certain gifts or abilities. A charismatic leader will often gain
followers through personality rather than through power or
authority.
There are four key characteristics that are associated with a
charismatic leader. The leader must have vision, expressed as an
idealized goal. The leader must be willing to take on high
personal risk and engage in self-sacrifice to achieve the vision.
In doing so, the leader needs to remain sensitive to the feelings
and needs of their followers. Throughout the process, the leader
may be engaging in behaviors that are perceived as counter to
norms, thereby extraordinary.
17
Charismatic Leaders: Born or Made?
Charisma is partially attributed to genetics and partially to
training and experience
Developing an aura of charisma:
Be optimistic
Be passionately enthusiastic
Communicate with body, not just words
Draw others in – inspire others
Tap into emotions – bring out the potential in others
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
The charismatic traits are often traits that a leader is born with,
thus continuing the debate on whether leaders are born or
developed.
In reality it is a mix of genetics, training, and experience.
Charisma can be created. One way is to develop an aura of
charisma by being optimistic, passionately enthusiastic, and to
communicating with behaviors and words. A leader can also
create charisma by drawing in others through inspiration, as
well as by tapping into the emotions of individuals to bring out
their potential.
18
How Charismatic Leaders Influence Followers
Articulate an appealing vision
Communicate a new set of values
Model behaviors for those values
Express dramatic behavior
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Evidence shows a four-step process can help the charismatic
leader utilize their characteristics to influence their followers.
First, the leader articulates a long-term strategy for achieving a
goal. This strategy should fit the vision and uniqueness of the
organization. Next, the leader needs to formalize that vision by
creating a vision statement. Charismatic leaders will often use
this statement to reinforce the goal and purpose of the
organization. This vision is communicated in a way that
expresses the leader’s excitement and commitment to the goal.
Next, the leader will use his words and actions to communicate
a new set of values for the followers to imitate. Then the
charismatic leader will try to find behaviors that demonstrate
their commitment to the vision. They will choose behaviors that
will help followers “catch” the emotions the leader is conveying
and help achieve buy-in from the followers.
Finally, the charismatic leader engages in emotion-inducing and
often unconventional behavior to demonstrate courage and
conviction about the vision, in order to, help followers “catch”
the vision.
19
Charisma and Situational Dependency
Charisma is strongly correlated to high performance and
satisfaction
Best used when
Environment is uncertain or stressful
Ideology is involved
Most closely associated with upper-level executives
People are most receptive to charisma when there is a crisis
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Charismatic leaders have been shown to be effective but it often
depends on the context. This leadership style works best in an
environment where it is uncertain, stressful, and where there is
some ideology involved.
It is more closely associated with upper-level executives and
people are most receptive to charismatic actions when there is a
crisis.
20
The Dark Side of Charismatic Leadership
Some leaders:
Use organizational resources for personal benefit
Remake companies in their own image
Allow self-interest and personal goals to override organization’s
goals
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
There is a dark side to charismatic leadership if the leader
misuses their skill set. In the past we have seen situations where
leaders have abused company resources and used them for their
own benefit. Some leaders with strong charisma have remade
companies in their own image and left no plans for succession
when they leave.
In many cases, the charismatic leader lets their own goals
override those of the organization, thus creating a negative
situation for the organization.
21
Transactional and Transformational Leadership
Transactional leaders:
Motivate their followers in the direction of established goals by
clarifying role and task requirements
Transformational leaders:
Inspire followers to transcend their own self-interests for the
good of the organization
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Rights Reserved.
Transactional leaders motivate their follower towards the goals
set by clarifying their roles in the process and what they need to
do to reach the goals set.
Transformational leaders help followers to look at the bigger
picture and commit to the good of the organization, even if it
means setting their own goals aside.
These two approaches are not contradictory in nature; in fact
they can complement each other. Transformational leadership
often is built upon transactional leadership. Good leadership
will incorporate both transactional and transformational
components.
22
Characteristics of Transactional and Transformational Leaders
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This exhibit shows characteristics of transactional and
transformational leaders.
23
Full Range of Leadership Model
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
This exhibit shows the full range of the leadership model. The
first three behaviors represent transactional approaches and
begins with the Laissez-faire approach, which is the most
passive. As a leader progresses on the scale, she moves toward
more active behaviors. The final four behaviors on the model
represent transformational actions. This model shows that as
leaders utilize more transformational behaviors, they become
more effective.
24
How Transformational Leadership Works
Organizations with transformational leaders have
Greater decentralization of responsibility
Managers willing to take risks
Compensation geared toward long-term results
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Rights Reserved.
In organizations with transformational leaders, there is typically
greater decentralization of responsibility, managers have a
higher propensity to take risks, and compensation plans are
geared toward long-term results. These organizations often have
greater agreement among top managers about the organization’s
direction.
25
Evaluation of Transformational Leadership
Transformational leadership:
Is effectively used in various job levels and disparate
occupations
Tends to be more effective in smaller companies
Works better when the leader directly interacts with followers
Can be learned
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Transformational leadership works in a variety of contexts but
tends to be more effective in smaller companies. It does work
better when the leader is more closely connected to the
followers and can understand their situation. The link between
transformational leadership and positive job outcomes is solid.
26
Transformational versus Transactional Leadership
Transformational leadership is more strongly correlated with:
Lower turnover
Higher productivity
Lower employee stress and burnout
Higher employee satisfaction
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Research shows that transformational leadership results in many
desirable outcomes. However, contingent reward leadership
sometimes works as well as transformational leadership.
There are a lot of commonalities between transformational
leadership and charismatic leadership, but in general,
charismatic leadership focuses on how leaders communicate,
while transformational leadership focuses on what is
communicated.
27
Authentic Leadership: Ethics and Trust
Authentic leaders know who they are, what they believe in and
value, and act on those values and beliefs openly and candidly
Create trust
Encourage open communication
People have faith in them
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Authentic leadership is a growing area of research. There are
several components that need to be addressed when discussing
authenticity in leadership. First, we must look at authentic
leaders. These are leaders who engage in reflection and
understand who they are and what they believe, and bring those
two aspects together in their actions.
Next, authentic leaders are able to create trust with their
followers and encourage a culture of open communication.
These factors will help to create an authentic leader that people
will follow.
28
Ethical Leadership
Ethics and leadership intersect at many junctures
Executives set the moral tone for an organization, so they must
set and adhere to high ethical values
Leadership is not value free, and the means by which a leader
achieves their goal must be framed by ethics
Socialized charismatic leadership: leadership that conveys
other-centered values by leaders who model ethical conduct
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
There is a strong intersection of ethics and leadership. Over the
past several years we have been involved in what many have
called an ethical crisis in the business community. When we
look at leadership, we need to look at more than the results of
the leader. We must also look at the steps the leader took to
achieve those results.
29
Servant Leadership
Servant Leaders: Go beyond their own self-interest and focus on
opportunities to help followers grow and develop
Effects of servant leadership:
Higher levels of commitment to the supervisor, self-efficacy,
and perceptions of justice
Increased team potency and higher group performance
Higher levels of creative performance
Servant leadership may be more effective in certain cultures
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Servant leaders focus on opportunities to help followers grow
and develop. The effects of servant leadership include higher
levels of commitment to the supervisor, self-efficacy, and
perceptions of justice, all of which are related to organizational
citizenship behavior. Servant leaders increase team potency,
which leads to higher levels of group performance and also a
greater focus on growth and advancement, which leads to higher
levels of creative performance.
This type of leadership may be more prevalent in East Asian
cultures.
30
Trust
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Trust is defined as a state that exists when you agree to make
yourself vulnerable to another because you have a positive
expectation for how things are going to turn out. Over the years,
this has been found to be a foundational characteristic of
leadership. When trust is present, followers are willing to do as
the leader asks and engage in behaviors that are for the benefit
of the organization. In short, followers will do a lot more for a
leader they trust than for one they don’t trust.
Trust is developed over time. The interactions between leaders
and followers are part of the development of trust; it goes both
ways. Research has shown that the three main characteristics of
a leader that instills trust are integrity, ability, and benevolence.
These three characteristics are important in developing trust
between leaders and followers. If followers perceive these
characteristics as strong in their leaders, it will encourage
positive behaviors such as risk taking, information sharing,
group interactions, and productivity.
31
Trust
Taking Risks
Information Sharing
Effective Groups
Enhanced Productivity
Developing Trust
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Rights Reserved.
Research shows that three key characteristics – integrity,
benevolence, and ability – lead us to believe a leader is
trustworthy.
Trust propensity refers to how likely a particular employee is to
trust a leader. Keep in mind though that trust in an employment
relationship can be built on very different perceptions from
culture to culture.
Time is also important to trust – we come to trust people by
observing their behavior over a period of time. It’s important
for leaders to demonstrate integrity, benevolence, and ability in
situations where trust is important. Demonstrating competence
is also important. Finally, using an on-going dialogue rather
than top-down communications is important to the development
of trust.
If you’ve lost trust, you can sometimes regain it. Apologize if
the cause was lack of ability. Regaining trust is much harder,
though, if the cause was lack of integrity or deception.
32
Mentoring
Mentor: a senior employee who sponsors and supports a less-
experienced employee, a protégé
Mentoring programs benefit both mentors and protégés
Benefits of mentoring are primarily psychological
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Rights Reserved.
Successful mentors are good teachers. They present ideas
clearly, listen well, and empathize with protégés’ problems.
Mentoring relationships, whether formal or informal, serve
career functions and psychosocial functions.
33
Leadership as an Attribution
Attribution Theory of Leadership
Performance outcomes are attributed to leaders’ actions
Appearance has more to do with leadership than actual
accomplishments
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Rights Reserved.
There are many challenges to understanding leadership. The
attribution theory states that it is hard to attribute outcomes to
leadership and that often leadership is more about performance
than outcomes.
34
Substitutes and Neutralizers
Substitutes
Replace the need for a leader’s support or ability to create
structure
Neutralizers
Organizational variables can neutralize the leader’s influence or
act as substitutes for leadership
Leader becomes irrelevant
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
There are many challenges to understanding leadership. The
attribution theory states that it is hard to attribute outcomes to
leadership and that often leadership is more about performance
than outcomes.
In addition, you can have an extremely effective leader, but
organizational variables can neutralize the leader’s ability to
lead and create change, thus rendering the leader irrelevant.
35
Substitutes for and Neutralizers of Leadership
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Rights Reserved.
Neutralizers make it impossible for leader behavior to make any
difference to follower outcomes.
36
Online Leadership
Identification-based trust: trust based on a mutual understanding
of each other’s intentions and appreciation of each other’s
wants and desires
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Rights Reserved.
Today, managers and employees are increasingly linked by
networks rather than geographic proximity. For these managers,
developing and maintaining trust is especially challenging.
37
Implications for Managers
Ensure that your preferences on the initiating structure and
consideration dimensions match work dynamics and culture.
Hire candidates who exhibit transformational leadership
qualities and who have demonstrated success in working
through others to meet a long-term vision.
Hire candidates who are ethical and trustworthy; train managers
in ethical standards.
Seek to develop trusting relationships with followers.
Consider investing in leadership training.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.
Leadership is a complex function in an organization but
essential for success. Individuals, groups, and organizations all
need leaders and there are many factors that define a successful
leader. Each organization must assess what they need in their
leader in order to be effective.
38
Copyright
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All
Rights Reserved.

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  • 1. Running head: JOB SATISFACTION IN PHILIPPINES 1 JOB SATISFACTION IN PHILIPPINES 2 JOB SATISFACTION IN PHILIPPINES Name Course title Institution According to this article Philippines are less happy at work even though most of them look forward to career development. This unhappiness is attributed to lack of career development, lack of training opportunities and organizations’ management styles. Job dissatisfaction has continued to go down as it was 4.97 in 2016 while in 2017 it was 5.25. In a survey that was conducted with the aim of knowing what would make people more satisfied with their jobs most people mentioned pay rise while others insisted that they would like to leave their jobs and get new ones. Good relationship with colleagues was the only reason why they were still in their jobs. The extent to which workers were dissatisfied was different depending on workers age and professional stage. Those workers who were born before 1960 were found happier compared to those born after 1995. In terms of position those at the executive level were found to be more satisfied compared followed by new graduates.
  • 2. For the baby boomers were happy about a job because of the schedule while the younger were interested in work location and work relationships. Older employees are dissatisfied due to lack of training, career development, and low wages. The managers need to communicate with employees on what factors would boost their job satisfaction. Job satisfaction in Philippines is very different compared to US. In US 51% of all employees are satisfied while in Philippines job satisfaction is very low. Philippines can borrow much from what US has done to ensure that workers are satisfied with their jobs. The similarity in the two countries is that the rate of job satisfaction has been declining in the recent past. Philippines have much to learn from US than it is for US to learn from Philippines. Philippines can make sure that its labor markets are tight to ensure low layoff rates. It can also improve working conditions and increase opportunities for its labor markets. As baby boomers continue to retire labor demand will go up and the rates of job satisfaction would go up. Relationships are also important in ensuring job satisfaction. To ensure this there should be good relationships with coworkers, supervisors and their physical work environment. Job quality is also a mechanism of increasing job satisfaction. Employees should be given opportunities to develop their careers and be taken through trainings. They should also be given quality pay for their work and have good benefits e.g. health and retirement benefits. For both countries, there must be communication with the employees to identify what things make them be dissatisfied with their jobs and something can be done to improve the situation. The labor market should be looked into if the situation has to improve. Reference https://cnnphilippines.com/news/2017/10/25/Filipinos-work- satisfaction-jobstreet.html
  • 3. http://fortune.com/2017/09/01/job-satisfaction-highest-since- 2005/ Essentials of Organizational Behavior Fourteenth Edition Chapter 12 Leadership Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. 1 After studying this chapter you should be able to: Summarize the conclusions of trait theories of leadership. Identify the central tenets and main limitations of behavioral theories. Contrast contingency theories of leadership. Describe the contemporary theories of leadership and their relationship to foundational theories. Discuss the roles of leaders in creating ethical organizations. Describe how leaders can have a positive impact on their organizations through building trust and mentoring.
  • 4. Identify the challenges to our understanding of leadership. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. What Is Leadership? Leadership: The ability to influence a group toward the achievement of a vision or a set of goals Trait theories of leadership: focus on personal qualities and characteristics Leadership emergence Leadership effectiveness Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Leadership is the ability to influence a group toward the achievement of goals. The trait theories of leadership focus on personal qualities like those in the Big Five and characteristics that predict two distinct outcomes: leadership emergence and leadership effectiveness. 3 Trait Theories of Leadership Two conclusions: Traits can predict leadership Traits do a better job predicting the emergence of leaders and the appearance of leadership than distinguishing between effective and ineffective leaders Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The fact that an individual exhibits the right traits and that others consider him a leader does not necessarily mean he will
  • 5. be an effective leader who is successful at getting the group to achieve its goals. 4 Personality Traits and Leadership Big Five Traits Extraversion has strongest relation to leadership Conscientiousness and openness to experience also strongly relate to leadership Agreeableness and emotional stability are not correlated with leadership Dark Side Traits Normative scores on Machiavellianism, narcissism, and psychopathy are optimal Emotional intelligence EI contributes to emergence of leaders Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Some essential leadership traits include extraversion, conscientiousness, openness, and agreeableness. Research shows that the Dark Side personality traits of Machiavellianism, narcissism, and psychopathy are not all bad for leadership. Higher scores on Dark Side traits and emotional stability can contribute to the emergence of leadership. Finally, emotional intelligence or EI has been linked with leadership effectiveness, especially with regard to empathy, a core component of EI. Leaders with empathy are able to sense others’ needs, listen to their followers, and read the reactions of others. 5 Behavioral Theories Behavioral theories of leadership: we can determine leadership effectiveness by leader behavior, and perhaps train people to be leaders
  • 6. The Ohio State Studies Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The behavioral theories of leadership focus on the premise that behaviors can be taught and traits cannot, so leaders are trained, not born. 6 Ohio State Studies Attempts to organize work, work relationships, and goals Concern for followers’ comfort, well-being, status, and satisfaction Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. A key study in the area of behavioral leadership advanced our understanding of the theory. The research was done at the Ohio State University. Researchers looked at important dimensions of leadership behavior and began with over 1,000 dimensions. In the end, the Ohio State studies were able to narrow it down to two dimensions – initiating structure and consideration. Initiating structure is when the leader is able to define and structure their role and that of their employees to work toward the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader. 7 Initiating Structure
  • 7. Consideration Cultural Differences GLOBE Leadership Project Results: Brazil – Leaders are participative and humane France – Leaders are bureaucratic, task oriented, and autocratic China – Initiating structure and consideration important: status differences but participation valued Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The GLOBE study suggests that there are differences across cultures in the preference for initiating structure and consideration. 8 Contingency Theories Fiedler leadership model: Effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. In this theory, Fielder is trying to match the leader to the context. He proposes that leadership style is fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit that style, you need to change leaders. 9
  • 8. Fiedler Leadership Model Least-Preferred Co-worker (LPC) determines leadership style (fixed trait) Relationship oriented Task oriented Match leader’s style with degree of situational control Leader-member relations Task structure Position power Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Leadership style can be determined by taking the LPC questionnaire (least preferred co-worker). After the leadership style is determined you can match the leader to the situation. There are three dimensions to finding a successful match. The first situational factor is the leader- member relationship; this ties back to our behavioral studies by looking at the degree of trust and respect employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards. In Fiedler’s model, you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization. 10 Matching Leaders to Situations Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
  • 9. This graph helps to visually determine the situational factors and what type of leader would succeed in this situation. There are eight possible situations in which leaders can find themselves. By matching their LPC score with these eight different situations a leader can see where they will be most effective. For example, categories four through six would be better suited to relationship-oriented leaders because Fielder proposes that they perform best in moderately favorable situations. 11 Situational Leadership Theory Situational leadership theory (SLT): successful leadership depends on selecting the right leadership style, contingent on the followers’ readiness to accomplish a task Unable and unwilling Unable but willing Able but unwilling Able and willing Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. SLT acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation. 12 Path–Goal Theory Path–goal theory: it’s the leader’s job to provide followers with information, support, or other resources necessary to achieve goals Directive leadership yields greater satisfaction when tasks are ambiguous or stressful Supportive leadership results in high performance and
  • 10. satisfaction when tasks are structured Directive leadership is perceived as redundant by employees with high ability or experience Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Effective leaders clarify followers’ paths to their work goals and make the journey easier by reducing roadblocks. Directive or supportive leadership does matter to followers’ performance, and leaders need to be aware of their important facilitating role. The effectiveness of leaders depends to a large degree on their followers. 13 Leader-Participation Model Leader-participation model: provides a set of rules to determine the form and amount of participative decision making in different situations Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The way the leader makes decisions is as important as what he or she decides. Leader behavior must adjust to reflect the task structure. 14 Leader-Member Exchange Leader-member exchange (LMX) theory: supports leaders’ creation of ingroups and outgroups Subordinates with ingroup status will likely have higher performance ratings, less turnover, and greater job satisfaction
  • 11. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. LMX argues that leaders, because of time pressures, tend to establish special relationships with a small group of followers who then become their ingroup. In this capacity, they enjoy a disproportionate share of the leader’s attention, greater trust, and special privileges. 15 LMX Theory Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Research shows that ingroup members have demographic, attitude, and personality characteristics similar to those of their leaders or a higher level of competence than outgroup members. 16 Charismatic Leadership Charismatic leadership theory: Attributions of heroic leadership abilities when followers observe certain behaviors Vision and articulation Personal risk taking Sensitivity toward followers Unconventional behaviors Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Charisma comes from the Greek word meaning “gift”. When talking about a charismatic leader, one refers to someone with certain gifts or abilities. A charismatic leader will often gain
  • 12. followers through personality rather than through power or authority. There are four key characteristics that are associated with a charismatic leader. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so, the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process, the leader may be engaging in behaviors that are perceived as counter to norms, thereby extraordinary. 17 Charismatic Leaders: Born or Made? Charisma is partially attributed to genetics and partially to training and experience Developing an aura of charisma: Be optimistic Be passionately enthusiastic Communicate with body, not just words Draw others in – inspire others Tap into emotions – bring out the potential in others Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The charismatic traits are often traits that a leader is born with, thus continuing the debate on whether leaders are born or developed. In reality it is a mix of genetics, training, and experience. Charisma can be created. One way is to develop an aura of charisma by being optimistic, passionately enthusiastic, and to communicating with behaviors and words. A leader can also create charisma by drawing in others through inspiration, as well as by tapping into the emotions of individuals to bring out
  • 13. their potential. 18 How Charismatic Leaders Influence Followers Articulate an appealing vision Communicate a new set of values Model behaviors for those values Express dramatic behavior Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First, the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next, the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leader’s excitement and commitment to the goal. Next, the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They will choose behaviors that will help followers “catch” the emotions the leader is conveying and help achieve buy-in from the followers. Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision, in order to, help followers “catch” the vision. 19 Charisma and Situational Dependency
  • 14. Charisma is strongly correlated to high performance and satisfaction Best used when Environment is uncertain or stressful Ideology is involved Most closely associated with upper-level executives People are most receptive to charisma when there is a crisis Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Charismatic leaders have been shown to be effective but it often depends on the context. This leadership style works best in an environment where it is uncertain, stressful, and where there is some ideology involved. It is more closely associated with upper-level executives and people are most receptive to charismatic actions when there is a crisis. 20 The Dark Side of Charismatic Leadership Some leaders: Use organizational resources for personal benefit Remake companies in their own image Allow self-interest and personal goals to override organization’s goals Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. There is a dark side to charismatic leadership if the leader misuses their skill set. In the past we have seen situations where leaders have abused company resources and used them for their own benefit. Some leaders with strong charisma have remade companies in their own image and left no plans for succession
  • 15. when they leave. In many cases, the charismatic leader lets their own goals override those of the organization, thus creating a negative situation for the organization. 21 Transactional and Transformational Leadership Transactional leaders: Motivate their followers in the direction of established goals by clarifying role and task requirements Transformational leaders: Inspire followers to transcend their own self-interests for the good of the organization Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Transactional leaders motivate their follower towards the goals set by clarifying their roles in the process and what they need to do to reach the goals set. Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside. These two approaches are not contradictory in nature; in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components. 22 Characteristics of Transactional and Transformational Leaders
  • 16. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. This exhibit shows characteristics of transactional and transformational leaders. 23 Full Range of Leadership Model Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. This exhibit shows the full range of the leadership model. The first three behaviors represent transactional approaches and begins with the Laissez-faire approach, which is the most passive. As a leader progresses on the scale, she moves toward more active behaviors. The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors, they become more effective. 24 How Transformational Leadership Works Organizations with transformational leaders have Greater decentralization of responsibility Managers willing to take risks Compensation geared toward long-term results Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. In organizations with transformational leaders, there is typically greater decentralization of responsibility, managers have a higher propensity to take risks, and compensation plans are geared toward long-term results. These organizations often have
  • 17. greater agreement among top managers about the organization’s direction. 25 Evaluation of Transformational Leadership Transformational leadership: Is effectively used in various job levels and disparate occupations Tends to be more effective in smaller companies Works better when the leader directly interacts with followers Can be learned Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Transformational leadership works in a variety of contexts but tends to be more effective in smaller companies. It does work better when the leader is more closely connected to the followers and can understand their situation. The link between transformational leadership and positive job outcomes is solid. 26 Transformational versus Transactional Leadership Transformational leadership is more strongly correlated with: Lower turnover Higher productivity Lower employee stress and burnout Higher employee satisfaction Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Research shows that transformational leadership results in many desirable outcomes. However, contingent reward leadership sometimes works as well as transformational leadership.
  • 18. There are a lot of commonalities between transformational leadership and charismatic leadership, but in general, charismatic leadership focuses on how leaders communicate, while transformational leadership focuses on what is communicated. 27 Authentic Leadership: Ethics and Trust Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly Create trust Encourage open communication People have faith in them Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Authentic leadership is a growing area of research. There are several components that need to be addressed when discussing authenticity in leadership. First, we must look at authentic leaders. These are leaders who engage in reflection and understand who they are and what they believe, and bring those two aspects together in their actions. Next, authentic leaders are able to create trust with their followers and encourage a culture of open communication. These factors will help to create an authentic leader that people will follow. 28 Ethical Leadership Ethics and leadership intersect at many junctures Executives set the moral tone for an organization, so they must set and adhere to high ethical values Leadership is not value free, and the means by which a leader achieves their goal must be framed by ethics
  • 19. Socialized charismatic leadership: leadership that conveys other-centered values by leaders who model ethical conduct Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. There is a strong intersection of ethics and leadership. Over the past several years we have been involved in what many have called an ethical crisis in the business community. When we look at leadership, we need to look at more than the results of the leader. We must also look at the steps the leader took to achieve those results. 29 Servant Leadership Servant Leaders: Go beyond their own self-interest and focus on opportunities to help followers grow and develop Effects of servant leadership: Higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice Increased team potency and higher group performance Higher levels of creative performance Servant leadership may be more effective in certain cultures Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Servant leaders focus on opportunities to help followers grow and develop. The effects of servant leadership include higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice, all of which are related to organizational citizenship behavior. Servant leaders increase team potency, which leads to higher levels of group performance and also a greater focus on growth and advancement, which leads to higher levels of creative performance. This type of leadership may be more prevalent in East Asian
  • 20. cultures. 30 Trust Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years, this has been found to be a foundational characteristic of leadership. When trust is present, followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one they don’t trust. Trust is developed over time. The interactions between leaders and followers are part of the development of trust; it goes both ways. Research has shown that the three main characteristics of a leader that instills trust are integrity, ability, and benevolence. These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders, it will encourage positive behaviors such as risk taking, information sharing, group interactions, and productivity. 31 Trust Taking Risks Information Sharing
  • 21. Effective Groups Enhanced Productivity Developing Trust Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Research shows that three key characteristics – integrity, benevolence, and ability – lead us to believe a leader is trustworthy. Trust propensity refers to how likely a particular employee is to trust a leader. Keep in mind though that trust in an employment relationship can be built on very different perceptions from culture to culture. Time is also important to trust – we come to trust people by observing their behavior over a period of time. It’s important for leaders to demonstrate integrity, benevolence, and ability in
  • 22. situations where trust is important. Demonstrating competence is also important. Finally, using an on-going dialogue rather than top-down communications is important to the development of trust. If you’ve lost trust, you can sometimes regain it. Apologize if the cause was lack of ability. Regaining trust is much harder, though, if the cause was lack of integrity or deception. 32 Mentoring Mentor: a senior employee who sponsors and supports a less- experienced employee, a protégé Mentoring programs benefit both mentors and protégés Benefits of mentoring are primarily psychological Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Successful mentors are good teachers. They present ideas clearly, listen well, and empathize with protégés’ problems. Mentoring relationships, whether formal or informal, serve career functions and psychosocial functions. 33 Leadership as an Attribution Attribution Theory of Leadership Performance outcomes are attributed to leaders’ actions Appearance has more to do with leadership than actual accomplishments Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. There are many challenges to understanding leadership. The attribution theory states that it is hard to attribute outcomes to leadership and that often leadership is more about performance
  • 23. than outcomes. 34 Substitutes and Neutralizers Substitutes Replace the need for a leader’s support or ability to create structure Neutralizers Organizational variables can neutralize the leader’s influence or act as substitutes for leadership Leader becomes irrelevant Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. There are many challenges to understanding leadership. The attribution theory states that it is hard to attribute outcomes to leadership and that often leadership is more about performance than outcomes. In addition, you can have an extremely effective leader, but organizational variables can neutralize the leader’s ability to lead and create change, thus rendering the leader irrelevant. 35 Substitutes for and Neutralizers of Leadership Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Neutralizers make it impossible for leader behavior to make any difference to follower outcomes. 36 Online Leadership
  • 24. Identification-based trust: trust based on a mutual understanding of each other’s intentions and appreciation of each other’s wants and desires Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Today, managers and employees are increasingly linked by networks rather than geographic proximity. For these managers, developing and maintaining trust is especially challenging. 37 Implications for Managers Ensure that your preferences on the initiating structure and consideration dimensions match work dynamics and culture. Hire candidates who exhibit transformational leadership qualities and who have demonstrated success in working through others to meet a long-term vision. Hire candidates who are ethical and trustworthy; train managers in ethical standards. Seek to develop trusting relationships with followers. Consider investing in leadership training. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Leadership is a complex function in an organization but essential for success. Individuals, groups, and organizations all need leaders and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective. 38 Copyright
  • 25. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.