GB 370 Unit 12

the transactional leadership approach

the leader focuses on getting employees to achieve organizational goals. According to leader-member exchange (LMX) approach, the unique, trust-based relationships leaders develop with employees is the key to leadership effectiveness.

Vroom and Yetton's Normative Decision model

- a decision-making tool to help leaders determine how much involvement they should seek when making decisions -go through a list of questions and you work your way through a funnel based on your response

People oriented behaviors (aka consideration)

- include showing concern for employee feelings and treating employees with respect -genuinely care about the well-being of their employees and they demonstrate their concern in their actions and decisions

dictator

If a person is relying on force and punishment, the person is a

improve your charisma by following these suggestions

Have a vision Tie the vision to history. Watch your body language Make sure that employees have confidence in themselves

Leader decision making

How leaders make decisions & the influence of the styles on leader effectiveness and employee reactions

IQ is a threshold quality: it matters for entry- to high-level management jobs, but once you get there, it no longer helps leaders because most leaders already have high IQ

The psychologist who coined the term emotional intelligence, Daniel Goleman, believes that

Team competence

What is the ability of this particular team to solve the problem? Let's imagine that this is a new team that just got together and they have little demonstrated expertise to work together effectively. We will answer this as low, or L.

inspirational motivation

come up with a vision that is inspiring to others.

Servant leadership approach

defines the leader's role as serving the needs of others. According to this approach, the primary mission of the leader is to develop employees and help them reach their goals

higher self esteem

more confidence, affects their image in the eyes of their followers

task-oriented behaviors

more strongly relating to leader effectiveness

Achievement-oriented leaders

set goals for employees and encourage them to react them. This style challenges employees and focuses their attention on work related goals. Effective wen employees have both high ability levels and achievement motivation levels.

In large, bureaucratic, and rule-bound organizations

such as the government and the military, a leader's traits may have less to do with how the person behaves and whether the person is a successful leader Ex:bravery, not as helpful in business settings

Leaders with high self-esteem

support subordinates more, and punish more effectively when needed

people who are effective as leaders

tend to have a moral compass and demonstrate honesty and integrity

Leadership

the act of influencing others to work toward a goal

low-quality LMX relationships

the leader and the member have lower levels of trust, liking, and respect toward each other. These relationships do not have to involve actively disliking each other, but the leader and member do not go beyond their formal job descriptions in their exchanges.

people-oriented behaviors

leading to employee satisfaction

laissez-faire decision making

leave employees alone to make the decision; the leader provides minimum guidance and involvement in the decision. -tends to be more problematic

Leaders whose integrity is questioned

lose their trustworthiness, and they hurt their company's business along the way.

Participative leaders

make sure employees are involved in making important decisions Effective when employees have high ability levels and decisions to be made are personally relevant to them

Contingent rewards

mean rewarding employees for their accomplishments.

Limitations of behavioral approaches

-fell out of favor because they neglected the environment in which behaviors are demonstrated Explained: researchers were trying to find a set of identified behaviors that were applicable in all circumstances, but no circumstance is exactly alike which makes that completely unrealistic -specifying the conditions under which these behaviors are more effective may be a better approach.

Task-oriented behaviors (aka initiating structure)

-involve structuring the roles of subordinates, providing them with instructions, and behaving in ways that will increase the performance of the group -directives given to employees to get things done, ensure goals are met

Goal alignment

Are the employee goals aligned with organizational goals? In this instance, employee and organizational goals may be aligned because you both want to ensure that employees are healthier. So let's say the alignment is high, and follow H.

Robert House's path-goal theory of leadership

Based on the expectancy theory of motivation which suggests that employees are motivated when they believe/expect that Their effort will yield high performance Their high performance will be rewarded The rewards are valuable to them

the context in which leadership occurs, which paved the way to contingency theories of leadership.

Because of the inconsistency of results, researchers realized the importance of

transactional leaders use three other methods

Contingent rewards Active management by exception Passive management by exception

Group expertise

Does the group have expertise in this decision-making area? The group in question has little information about which alternatives are costlier or more user friendly. We'll say group expertise is low. Follow the path from L.

Leader expertise

Does the leader have all the information needed to make a high-quality decision? In our example, leader expertise is low. You do not have information regarding what your employees need or what kinds of stress reduction resources they would prefer.

Importance of commitment

Does the leader need employee cooperation to implement the decision? In our example, the answer is high, because employees may simply ignore the resources if they do not like them. Follow the path through H.

achieve servant leadership

Don't ask what your employees can do for you One of your key priorities should be to help employees reach their goals Be humble Be open with your employees. Find ways of helping the external community

Likelihood of commitment.

If the leader makes the decision alone, what is the likelihood that the employees would accept it? Let's assume that the answer is Low. Based on the leader's experience with this group, they would likely ignore the decision if the leader makes it alone. Follow the path from L.

high emotional intelligence (EQ).

In addition to having high IQ, effective leaders tend to have

a high level of self-awareness, motivation, empathy, and social skills

People with high EQ demonstrate

Which leadership style do you think is more effective, transformational or transactional?

Research shows that transformational leadership is a powerful influence over leader effectiveness as well as employee satisfaction

leadership emergence (whether someone is viewed as a leader by others) and leadership effectiveness.

Several of the Big Five personality traits have been related to

formal leaders

Some leaders hold a position of authority and may use the power that comes from their position, as well as their personal power, to influence others; they are called

Extraversion

Strongest trait related to leadership Being outgoing, talkative, sociable, and enjoying social situations

Decision significance

The decision has high significance because the approach chosen needs to be effective at reducing employee stress for the insurance premiums to be lowered. In other words, there is a quality requirement to the decision

Self-Esteem

The degree to which people are at peace with themselves and have an overall positive assessment of their self-worth and capabilities seems to be relevant to whether they will be viewed as a leader.

Why is transformational leadership more effective?

The key factor may be trust

to be aware that not all traits are equally effective in predicting leadership potential across all circumstances

The key to benefiting from the findings of trait researchers is

In small entrepreneurship organizations

The key to benefiting from the findings of trait researchers is to be aware that not all traits are equally effective in predicting leadership potential across all circumstances.

Researchers started following a contingency approach to leadership—rather than trying to identify traits or behaviors that would be effective under all conditions, the attention moved toward specifying the situations under which different styles would be effective

Under which conditions are different leadership styles more effective

managers and CEOs are often viewed as responsible

What happens when people and organizations fail

Fiedler's Contingency Theory

a leaders style is measured by a scale called Least Preferred Coworker (LPC) scale -think of your least preferred coworker, then rate this person in terms of friendliness, cooperation, kindness -If you can still say kind things about this LPC, you would have a high score... means you are people oriented and you work well with others -If you did not like them on a personal level, Low LPC -also means you are a task oriented person

Transformational leaders have four tools in their possession

are charismatic inspirational motivation intellectual stimulation

high-quality LMX members

are more satisfied with their jobs, more committed to their companies, have higher levels of clarity about what is expected of them, and perform at a higher level

informal leaders

are without a formal position of authority within the organization but demonstrate leadership by influencing others through personal forms of power.

According to Goleman, what differentiates effective leaders from ineffective ones

becomes their ability to control their own emotions and understand other people's emotions, their internal motivation, and their social skills (Goleman, 2004).

agreeableness

being affable, tolerant, sensitive, trusting, kind, and warm

Neuroticism

being anxious, irritable, temperamental, and moody

openness

being curious, original, intellectual, creative, and open to new ideas

Conscientiousness

being organized, systematic, punctual, achievement oriented, and dependable

Leaders

do not rely on the use of force to influence people. Instead, people willingly adopt the leader's goal as their own goal

The authentic leadership approach

embraces this value: its key advice is "be yourself."

democratic decision making

employees participate in the making of the decision. -employees are usually most satisfied using this method, but effects on decision quality tend to be weaker

transactional leaders

ensure that employees demonstrate the right behaviors because the leader provides resources in exchange

The transformational leadership approach

h highlights the importance of leader charisma, inspirational motivation, intellectual stimulation, and individualized consideration as methods of influence.

transformational leaders

increase the intrinsic motivation of their followers, build more effective relationships with employees, increase performance and creativity of their followers, increase team performance, and create higher levels of commitment to organizational change efforts

Active management by exception

involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring

Passive management by exception

is similar in that it involves leaving employees alone, but in this method, the manager waits until something goes wrong before coming to the rescue.

Trust

is the belief that the leader will show integrity, fairness, and predictability in his or her dealings with others.

Fiedler's theory's biggest contribution may be

it highlights the importance of a leader's ability to change styles, depending on the circumstances. House's path-goal theory underlines the importance of varying one's style, depending on the situation."

Transformational leaders

lead employees by aligning employee goals with the leader's goals. Thus, employees working for transformational leaders start focusing on the company's well-being rather than on what is best for them as individual employees

authoritarian decision making

leaders make the decision alone without necessarily involving employees in the decision-making process. -researchers found this method to be least favorable

relationship-oriented leaders

leaders would be effective when situational favorableness was moderate

to be viewed as leaders in their environment

people who have high mental abilities are more likely

Leader-Member Exchange (LMX) Theory

proposes that the type of relationship leaders have with their followers (members of the organization) is the key to understanding how leaders influence employees.

Supportive leaders

provide emotional support. Encouraging, know them on a personal level. Effective when employees are stressed or performing boring jobs

Directive leaders

provide specific directions to their employees. They lead employees by clarifying role expectations, setting schedules, and making sure that employees know what to do on a given workday. The theory predicts that the directive style will work well when employees are experiencing role ambiguity on the job.

General mental ability

psychologists refer to as "g" and which is often called IQ in everyday language, has been related to a person's emerging as a leader within a group

Big Five Model

rates an individual according to openness to experience, conscientiousness, extraversion, agreeableness, and Neuroticism.

Charisma

refers to behaviors leaders demonstrate that inspire confidence, commitment, and admiration toward the leader

high-quality LMX relationships,

the leader forms a trust-based relationship with the member. The leader and member like each other, help each other when needed, and respect one another. In these relationships, the leader and the member are both ready to go above and beyond their job descriptions to promote the other's ability to succeed.

House's path-goal theory states that

the leader's job is to ensure that employees view their effort as leading to performance and increase the belief that performance would be rewarded

transformational leaders rely on

their charisma, persuasiveness, and personal appeal to change and inspire their companies

such as intelligence (both mental ability and emotional intelligence), personality (extraversion, conscientiousness, openness to experience, self-esteem), and integrity

traits are consistently related to leadership

agreeable people who are modest, good natured, and avoid conflict are less likely to be perceived as leaders

traits that are negatively related to emerging as a leader and being successful as a leader

Contemporary approaches to leadership include

transformational leadership, leader-member exchange, servant leadership, and authentic leadership.

Kenneth Blanchard and Paul Hersey's Situational Leadership Theory (SLT)

which argues that leaders must use different leadership styles depending on their followers' development level says employees readiness (defined as a combination of their competence and commitment levels) is the key factor determining the proper leadership style. -recognizes that followers are a key to a leader's success

charismatic leadership

which is among the contemporary approaches to leadership, may be viewed as an example of a trait approach.

intellectual stimulation

which means that they challenge organizational norms and status quo, and they encourage employees to think creatively and work harder.

individualized consideration

which means that they show personal care and concern for the well-being of their followers.

task-oriented leaders

would be most effective when the situation was the most and the least favorable

low quality exchange members

you may not have access to the positive work environment available to the high-quality LMX members low LMX employees may feel that their situation is unfair they are more likely to be given the benefit of the doubt.