Ch 12: MGMT 3300

"What key characteristics lead us to believe a leader is trust- worthy?

Evidence has identified three: integrity, benevolence, and ability"

Individualized consideration

Gives personal attention, treats each employee individually, coaches, advises."

Mentor

"A mentor is a senior em-ployee who sponsors and supports a less-experienced employee, a protégé. Successful mentors are good teachers. They present ideas clearly, listen well, and empathize with protégés' problems. Mentoring relationships serve career and psychosocial functions"

Transformational leaders

"A stream of research has focused on differenti-ating transactional from transformational leaders,45 who inspire followers to transcend their self-interests for the good of the organization."

Vision statement

"A vision needs an accompanying vision statement, a formal articulation of an organization's vision or mission."

Least preferred coworker (LPC) questonnaire

"As a first step, the least preferred coworker (LPC) questionnaire identifies whether a person is task-oriented or relationship-oriented by asking respondents to think of all the coworkers they ever had and describe the one they least enjoyed working with."

Authentic leadership

"Authentic lead-ers know who they are, know what they believe in, and act on those values and beliefs openly and candidly. "

Behavioral theories of leadership

"Behavioral theories of leadership, in contrast, imply we can train people to be leaders."

Vision

"By articulating an appealing vision, a long-term strategy for attaining a goal by linking the present with a better future for the organization. Desirable visions fit the times and circumstances, and reflect the uniqueness of the organization. Thus, followers are inspired not only by how passionately the leader communicates, but also to an appealing message."

Consideration

"Consideration is the extent to which a person's job relationships are characterized by mutual trust, respect for employees' ideas, and regard for their feelings. "

Contingent reward:

"Contingent Reward: Contracts exchange of rewards for effort, promises rewards for goodperformance, recognizes accomplishments."

Path-goal theory

"Developed by Robert House, path-goal theory extracts elements from the research on initiating structure and consideration, and on the expectancy theory of motivation."

Identification-based trust

"Identification-based trust, based on a mutual understanding of each other's intentions and appreciation of the other's wants and desires, is particularly difficult to achieve without face-to-face interaction."

Transactional leaders

"In contrast, Fiedler's model, situational leadership theory, and path-goal theory de-scribe transactional leaders, leaders who guide their followers toward established goals by clarifying role and task requirements."

Initiating structure

"Initiating structure is the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. It includes behavior that attempts to organize work, work relationships, and goals."

Laissez-faire

"Laissez-Faire: Abdicates responsibilities, avoids making decisions. "

Leader-member relations

"Leader-member relations is the degree of confidence, trust, and respect members have in their leader."

Mgmt by exception (active)

"Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action."

Mgmt by exception (passive)

"Management by Exception (passive): Intervenes only if standards are not me"

Neutralizers

"Neutralizers make it impossible for leader behavior to make any difference to follower outcomes "

Position power

"Position power is the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases"

Servant leadership

"Scholars have recently considered ethical leadership from a new angle by examining servant leadership.72 Servant leaders go beyond their self-interest and focus on opportunities to help followers grow and develop. "

Situational leadership theory (SLT)

"Situational leadership theory (SLT) focuses on the followers. It says successful leader-ship depends on selecting the right leadership style contingent on the followers' readi-ness, the extent to which followers are willing and able to accomplish a specific task. A leader should choose one of four behaviors depending on follower readiness"

Task structure

"Task structure is the degree to which the job assignments are procedurized (that is, structured or unstructured)."

Fiedler contingency model

"The Fiedler contingency model proposes that group performance depends on the proper match between the leader's style and the degree to which the situation gives the leader control."

Leader-participation model

"The leader-participation model relates leader-ship behavior to subordinate participation in decision making.19 Like path-goal theory, it says leader behavior must adjust to reflect the task structure (such as routine, nonroutine, or in between), but it does not cover all leadership behaviors and is limited to recommend-ing what types of decisions might be best made with subordinate participation."

Socialized charismatic leadership

"To integrate ethical and charismatic leadership, scholars have advanced the idea of socialized charismatic leadership—conveying other-centered (not self-centered) values through leaders who model ethical conduct.69 These leaders are able to bring employee values in line with their own values through their words and actions"

Trust

"Trust is a psychological state that exists when you agree to make yourself vulnerable to another person because you have positive expectations about how things are going to turn out."

trust propensity

"Trust propensity refers to how likely a particular employee is to trust a leader. Some people are simply more likely to believe others can be trusted. Trust propensity is closely linked to the personality trait of agreeableness and people with lower self-esteem are less likely to trust others"

Key characteristics of a charismatic leader

"Vision and articulation. Has a vision—expressed as an idealized goal—that proposes afuture better than the status quo; and is able to clarify the importance of the vision interms that are understandable to others.2. Personal risk. Willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve the vision. 3. Sensitivity to follower needs. Perceptive of others' abilities and responsive to their needsM12_ROBB3859_14_SE_C12.indd 194and feelings.4. Unconventional behavior. Engages in behaviors that are perceived as novel and counterto norms."

Charismatic leadership theory

"charismatic leadership theory, followers attri-bute heroic or extraordinary leadership abilities when they observe certain behaviors, and tend to give these leaders power."

Leader-member exchange (LMX) theory

"leader-member exchange (LMX) theory.21 LMX argues that, because of time pressures, leaders establish a special relationship with a small group of their followers. These followers make up the ingroup—they are trusted, get a disproportionate amount of the leader's attention, and are more likely to receive special privileges. Other followers fall into the outgroup."

Trait theories of leadership

"the trait theories of leadership focus on personal qualities, including personality traits like those in the Big Five (see Chapter 5), and characteristics that predict two distinct outcomes: leadership emergence and leadership effectiveness."

"The theory predicts:

-Situational leadership theory (SLT) A contingency theory that focuses on followers' readiness. • Directive leadership yields greater employee satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. • Supportive leadership results in high employee performance and satisfaction when employees are performing structured tasks.• Directive leadership is likely to be perceived as redundant among employees with high ability or considerable experience

"Unfortunately, charismatic leaders who are larger than life don't necessarily act in the best interests of their organizations.

Commensurate with this research observation, studies have indicated that individuals who are narcissistic are higher in some behaviors associated with charismatic leadership.44 Many charismatic—but corrupt—leaders have allowed their personal goals to override the goals of their organizations"

Inspirational motivation

Communicates high expectations, uses symbols to focus efforts,expresses important purposes in simple ways.

"A study in Europe and the United States found that normative (mid-range) scores on the

Dark-Side personality traits were optimal, and low (and high) scores were associated with ineffective leadership. Furthermore, the study suggested that high emotional stability may actually accentuate ineffective behaviors."

"Some personalities are especially susceptible to charismatic leadership.

For instance, an individual who lacks self-esteem and questions his or her self-worth is more likely to absorb a leader's direction rather than establish an individual way of leading or thinking. For these people, the situation may matter much less than the desired charismatic qualities of the leader"

"One study conducted in Portugal and the United States found that LMX was associ-ated strongly with followers' commitment to the organization when leaders were seen as embodying the values and identity of the organization.

Other research suggested that employees of leaders who provided family support (helping employees achieve work-life balance) in the LMX relationship were more committed and performed better.27 These findings shouldn't be surprising given our knowledge of self-fulfilling prophecy (see Chapter 6). Leaders invest resources in those whom they expect to perform best. Believ-ing ingroup members are the most competent, leaders treat them as such and unwittingly fulfill their prophecy"

Intellectual stimulation

Promotes intelligence, rationality, and careful problem solving.

Idealized influence

Provides vision and sense of mission, instills pride, gains respect and trust.

Attribution theory of leadership

Says leadership is merely an attribution people make about other individuals.

Charismatic leadership has positive effects across many contexts.

There are, however, characteristics of followers, and of the situation, that enhance or somewhat limit its effects"

"Two contemporary leadership theories—charismatic leadership and transformational leadership—share a common theme in the great leader debate:

They view leaders as individuals who inspire followers through words, ideas, and behaviors."

"Are charismatic leaders born with their qualities? Or can people actually learn to be charismatic leaders? Y

es, and yes.EXHIBIT 12-3Key Characteristics of a Charismatic LeaderIndividuals are born with traits that make them charismatic. In fact, studies of identical twins found they scored similarly on charismatic leadership measures, even if they were raised in different households and never met. Personality is also related to charismatic leadership; charismatic leaders are likely to be extraverted, self-confident, and achievement-oriented"

"In examining personality traits, researchers have consistently found

extraversion to be the most predictive trait of effective leadership.2 However, extraversion sometimes relates more to the way leaders emerge than to their effectiveness."

"Path-goal theory suggests it's the leader's job to provide

followers with information, support, or other resources necessary to achieve goals (the term path-goal implies that effective leaders clarify followers' paths to their work goals and make the journey easier by reduc-ing roadblocks)."

"Trait theories help us predict leadership, but they don't

fully help us explain leader-ship. "

"if they are unable but willing, the leader needs to display a

high task orientation to compensate for followers' lack of ability, and a high relationship orienta-tion to get them to "buy into" the leader's desires. If followers are able but unwilling, the leader needs to use a supportive and participative style; if they are both able and willing, the leader doesn't need to do much."

"This suggests that leaders who set goals enable conscientious followers to achieve

higher performance but may cause stress for workers who are low in conscientiousness.Like SLT, path-goal theory has intuitive appeal, especially from a goal attainment perspective. Also like SLT, the theory can be only cautiously adopted for application, but it is a useful framework in examining the important role of leadership."

Transformational leader traits

idealized influence, inspirational motivation, intellectual stimulation, individualized consideration

"The first researcher to consider charismatic leadership

in terms of organizational behav-ior (OB) was Robert House"

"Of course, this is a simplification. The match between leadership style and situa-tion can be

individualistic and mercurial. Some tasks might be both stressful and highly structured, and employees may have high ability or experience in some tasks and not "others. Other research has found that goal-focused leadership can lead to higher levels of emotional exhaustion for subordinates who are low in conscientiousness and emotional stability"

"SLT has intuitive appeal. It acknowledges the importance of followers and builds on the logic that

leaders can compensate for followers' limited ability and motivation. Yet research efforts to test and support the theory have generally been disappointing.15 Why? Possible explanations include internal ambiguities and inconsistencies in the model itself as well as problems with research methodology. So, despite its intuitive appeal and wide popularity, any endorsement must be cautious for now."

"Charismatic leadership theory relies on

leaders' ability to inspire followers to believe in them. "

"It lays the groundwork for the situations and

leadership behaviors most likely to elicit acceptance from subordinates"

"However, higher scores on Dark-Side traits and emotional stability can contribute to

leadership emergence. Thankfully, both this study and other international research indicate that building self-awareness and self-regulation skills may be helpful for leaders to control the effects of their Dark-Side traits"

"One study found leaders who scored very high in assertiveness, a facet of extraversion, were

less effective than those who were moderately high.3 So although extraversion can predict effective leadership, the relationship may be due to unique facets of the trait."

"Also, the leadership style that works in very bad times doesn't necessarily translate into

long-term success. When researchers looked at situational influences, it appeared that under condition a, leadership style x would be appropriate, whereas style y was more suitable for condition b, and style z for condition c. "

"Research has also demonstrated that people high in EI are

more likely to emerge as leaders, even after taking cognitive ability and personality into account."

"Based on the latest research literature, we offer two conclusions about personality traits and leader-ship:

one, traits can predict leadership; and two, traits do a better job in predicting the emergence of leaders and the appearance of leadership than in distinguishing between effective and ineffective leaders"

"Sociologist Max Weber defined charisma (from the Greek for "gift") as "a certain quality of an individual personality, by virtue of which he or she is set apart from

ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are not accessible to the ordinary person and are regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a leader.""

"Behavioral theories, discussed next, help us define the

parameters of leadership. Another way to look at this is by examining the utility of these theories. Trait research provides a basis for selecting the right people for leadership"

"Mixed results from behavioral theory tests may lie

partly in follower preferences, particu-larly cultural preferences. "

"A very favorable situation (in which the leader has a great deal of control) might include a

payroll manager who has the respect and confidence of his or her employees (good leader-member rela-tions); activities that are clear and specific—such as wage computation, check writing, "and report filing (high task structure); and considerable freedom to reward and punish employees (strong position power). An unfavorable situation, to the right in the model, might be that of the disliked chairperson of a volunteer United Way fundraising team (low leader-member relations, low task structure, low position power). In this job, the leader has very little control. When faced with a category I, II, III, VII, or VIII situation, task-oriented leaders perform better. Relationship-oriented leaders, however, perform better in moderately favorable situations—categories IV, V, and VI"

"A leader high in consideration helps employees with

personal problems, is friendly and approachable, treats all employees as equals, and expresses appreciation and support (people-oriented)."

"If you describe this person in favorable terms (a high LPC score), you are

relationship-oriented. If you see your least-preferred coworker in unfavorable terms (a low LPC score), you are primarily interested in productivity and are task-oriented."

"For all the positive outcomes the ingroup receives,

research indicates that both the ingroup and the outgroup realize negative effects from LMX"

"One factor that enhances charismatic leadership is

stress. People are especially re-ceptive to charismatic leadership when they sense a crisis, when they are under stress, or when they fear for their lives. We may be more receptive to charismatic leadership under crises because we think bold leadership is needed. Some of it, however, may be more pri-mal. When people are psychologically aroused, even in laboratory studies, they are more likely to respond to charismatic leaders."

"Some tough-minded leaders seem to gain a lot of admirers when they take over

struggling companies and lead them out of crises. However, predicting leadership success is more complex than finding a few hero examples. "

"The fact that an individual exhibits the right traits and others consider that person a leader does not necessarily mean he or she will be effective,

successful at getting the group to achieve its goals. That said, there are some strong links between traits and leadership we should consider."

"Nonsanctioned leadership—

the ability to influence that arises outside the formal structure of the organization—is sometimes more important than for-mal influence. "

"It's not that charismatic leadership isn't effective; overall, it is. But a charismatic leader isn't always

the answer. Success depends, to some extent, on the situation and on the leader's vision, and on the organizational checks and balances in place to monitor the outcome

"If followers are unable and unwilling to do a task,

the leader needs to give clear and specific directions"

"Studies testing the overall validity of the Fiedler model were initially supportive, but

the model hasn't been studied much in recent years. Therefore, while it provides some insights we should consider, its strict practical application is problematic."

"According to the model, the higher the task structure becomes,

the more proce-dures are added; and the stronger the position power, the more control the leader has."

"After finding a score, a fit must be found between

the organizational situation and the leader's style for leadership effectiveness to be predicted. We can assess the situation in terms of three contingency or situational dimensions:" leader-member relations task structure position power

"Just how the leader chooses who falls into each category is unclear, but

there is evidence ingroup members have demographic, attitude, and personality characteristics similar to those of their leaders or a higher level of competence than outgroup members"

"A number of studies have attempted to identify the characteristics of charismatic leaders:

they have a vision, are willing to take personal risks to achieve that vi-sion, are sensitive to follower needs, and exhibit extraordinary behaviors"

"Transformational leadership builds on

transactional leadership and pro-duces levels of follower effort and performance beyond what transactional leadership alone can do. But the reverse isn't true. If you are a good transactional leader but do not have transformational qualities, you'll likely only be a mediocre leader."

" How do charismatic leaders actually influence followers?"

vision

"Fred Fiedler developed

the first comprehensive contingency model for leadership."

" However, transformational leadership theory is not perfect;

the full range of leadership model shows a clear division between transactional "

Leadership

"We define leadership as the ability to influence a group toward the achievement of a vision or set of goals"

"and transformational leadership that may not fully exist in effective leadership.

And contrary to the full range of leadership model, the four I's of transformational leadership are not always superior in effectiveness to transactional leadership; contingent reward leadership—in which leaders dole out rewards as certain goals are reached by employees—sometimes works as well as transformational leadership. More research is needed, but the general supportable conclusion is that transformational leadership is desirable and effective, given the right application."

"Characteristic behaviors include listening, empathizing, persuading, accepting stewardship, and actively developing followers' po-tential.

Because servant leadership is based on the value of serving the needs of others, research has focused on its outcomes for the well-being of followers."

"Sometimes the difference between substitutes and neutralizers is fuzzy.

If I'm working on a task that's intrinsically enjoyable, theory predicts leadership will be less im-portant because the task provides motivation. But does that mean intrinsically enjoyable tasks neutralize leadership effects, or substitute for them, or both? Another problem is that while substitutes for leadership (such as employee characteristics and the nature of the task) matter to performance, that doesn't necessarily mean leadership is irrelevant.107 It's simplistic to think employees are guided to goal accomplishments solely by the actions of their leaders. "

"Once it has been violated, trust can be regained, but only in certain situations and depending on the type of violation.

If the cause is lack of ability, it's usually best to apologize and recognize you should have done better. When lack of integrity is the problem, apologies don't do much good. Regardless of the violation, saying nothing or refusing to confirm or deny guilt is never an effective strategy for regaining trust. Trust can be restored when we observe a consistent pattern of trustworthy behavior by the transgressor. However, if the transgressor used deception, trust never fully returns, not even after apologies, promises, or a consistent pattern of trustworthy actions"

"Although every member of an organization is responsible for ethical behavior, many initiatives aimed at increasing organizational ethical behavior are focused on the leaders. Because top executives set the moral tone for an organization, they need to set high ethical standards, demonstrate them through their own behavior, and encourage and reward integrity in others while avoiding abuses of power.

One research review found that role modeling by top leaders positively influenced managers throughout their organizations to behave ethically and fostered a climate that reinforced group-level ethical conduct. The findings suggest that organizations should invest in ethical leadership training programs, especially in industries with few ethical regulations. Leadership training programs that incorporate cultural values should be especially mandated for leaders who take foreign assignments or manage multicultural work teams."

"What are the effects of servant leadership?

One study of 123 supervisors found it resulted in higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice, which all were related to OCB.74 This relationship between servant leadership and follower OCB appears to be stronger when followers are encouraged to focus on be-ing dutiful and responsible.75

continued

Second, servant leadership increases team potency "that your team has above-average skills and abilities), which in turn leads to higher levels of group performance.76 Third, a study with a nationally representative sample found higher levels of citizenship were associated with a focus on growth and advancement, which in turn was associated with higher levels of creative performance.77 Other research found that servant leadership and a resulting culture of service increased employee job performance and creativity while reducing turnover intentions."

" Organizations with transformational leaders generally have greater decentralization of responsibility, managers with a higher propensity to take risks, and compensation plans geared toward long-term results—all of which facilitate corporate entrepreneurship.50

There are other ways transformational leadership works, as well. One study of information technology workers in China found empowering leadership behavior led to feelings of positive personal control among workers, which increased their creativity at work.51 Other research in Germany found that transformational leadership positively influenced workers' creativity, but suggested leaders need to guard against dependent leader relationships, which lower employee creativity.

"We come to trust people by observing their behavior over a period of time.

To help, leaders need to demonstrate integrity, benevolence, and ability in situations where trust is important—say, where they could behave opportunistically or let employees down. Second, trust can be won in the ability domain by demonstrating competence. Third, research with 100 companies around the world suggested that leaders can build trust by shifting their communication style from top-down commands to ongoing organizational dialogue. Lastly, when leaders regularly create interpersonal conversations "with their employees that are intimate, interactive, inclusive, and that intentionally follow an agenda, followers demonstrate trust with high levels of engagement"

"Does trust look the same in every culture?

Using the basic definition of trust, it certainly does. However, in the work context, trust in an employment relationship may be built on very different perceptions from culture to culture"

"We have seen that transformational leadership yields many desirable organizational outcomes.

When comparing transformational leadership with transactional leadership, research indicates transformational leadership is more strongly correlated than transactional leadership with lower turnover rates, higher productivity, lower employee stress and burnout, and higher employee satisfaction."

"Third,

a study of more than 3,000 employees from western Europe, the United States, and the Middle East found that people who tended to "romanticize" leadership in general were more likely to believe their own leaders were transformational"

"In general, individuals who like being around people and who are

able to assert themselves (extraverted), disciplined and able to keep com-mitments they make (conscientious), and creative and flexible (open) have an apparent advantage when it comes to leadership."

"Research indicates that charismatic leadership is not only the province of world leaders —

all of us can develop, within our own limitations, a more charismatic leadership style. If you stay active and central in your leadership roles, you will naturally communicate your vision for achieving goals to your followers, which increases the likelihood you will be seen as char-ismatic.38"

"Leadership is simply

another independent variable in our overall OB model"

"The final contingency theory we cover argues that the way the leader makes decisions is

as important as what he or she decides"

A leader high in initiating structure is someone who

assigns followers particular tasks, sets definite standards of performance, and emphasizes deadlines. According to a review of the leadership literature, initiating structure is more strongly related to higher levels of group and organization productivity, and to more positive performance evals

"Authentic leadership, especially when shared among top management team members,

can create a positive energizing effect that heightens firm performance."

"Other research indicates that

charismatic leadership may predict follower job satisfaction"

"Leaders and followers of the same gender tend to have

closer (higher LMX) relationships than those of different genders.24 Even though the leader does the choosing, the follower's characteristics drive the categorizing decision.In group High interactions Subordinate Research to test LMX theory has been generally supportive, with substantive evi-dence that leaders do differentiate among followers; these disparities are far from ran-dom; and followers with in group status receive higher performance ratings, engage in more helping or citizenship behaviors at work, and report greater satisfaction with their superiors.

Leaders induce LMX by rewarding employees with whom they want a

closer linkage and punishing those with whom they do not. For the LMX relationship to remain intact, the leader and the follower must invest in the relationship

"Unlike agreeableness and emotional stability, which do not seem to predict leadership,

conscientiousness and openness to experience may predict leadership, especially leader effectiveness."

"Leaders are important—to organizations and to employees. The understanding of leader-ship is a

constantly evolving science. Contemporary theories have built upon the founda-tion we've just established to discover the unique ways leaders emerge, influence, and guide their employees and organizations."

Transactional leader traits

contingent reward, mgmt by exception (active), mgmt by exception (passive), laissez-faire

"Charismatic leaders may use vision statements to imprint on followers an overarching goal and purpose. These leaders also set a tone of cooperation and mutual support. They build followers' self-esteem and confidence with high performance expectations and the belief that followers can attain them. Through words and actions, the leader conveys a new set of values and sets an example for followers to imitate. Finally, the charismatic leader engages in emotion-inducing and often unconven-tional behavior to demonstrate courage and conviction about the vision"

cooperation and mutual support. They build followers' self-esteem and confidence with high performance expectations and the belief that followers can attain them. Through words and actions, the leader conveys a new set of values and sets an example for followers to imitate. Finally, the charismatic leader engages in emotion-inducing and often unconven-tional behavior to demonstrate courage and conviction about the vision"

"leaders high in consideration succeeded best in countries where

cultural values did not favor unilateral decision making, such as Brazil. "

"Transactional and transformational leadership complement

each other; they aren't opposing approaches to getting things done.48 The best leaders are transactional and transformational."

"Another trait that may indicate effective leadership is

emotional intelligence (EI)"

"a core component of EI is

empathy. Empathetic leaders can sense others' needs, listen to what followers say (and don't say), and read the reactions of others. A leader who effectively displays and manages emotions will find it easier to influence the feelings of followers by expressing genuine sympathy and enthusiasm for good performance, and by showing irritation when employees fail to perform."

"Although theories have increased our understanding of effective leadership, they do not explicitly deal with the roles of ethics and trust, which some argue are

essential to com-plete the picture. Here, we consider contemporary concepts that explicitly address the role of leaders in creating ethical organizations. These and the theories we discussed ear-lier are not mutually exclusive ideas (a transformational leader may also be a responsible one), but we could argue that most leaders generally appear to be stronger in one category than another."

" Organizational characteristics such as

explicit formalized goals, rigid rules and procedures, and cohesive workgroups can replace formal leadership, while indifference to organizational rewards can neutralize its effects"

"Transformational leaders can have an

extraordinary effect on their followers, who respond with increased levels of commitment"

"Leadership is not value-free. In assessing its effectiveness, we need to address the means a leader uses to achieve

goals as well as the content of those goals. The role of the leader in creating the ethical expectations for all members is crucial.64 Ethical top leadership influences not only direct followers, but all the way down the command structure as well, because top leaders create an ethical culture and expect lower-level leaders to behave along ethical guidelines.65 Leaders rated as highly ethical tend to have followers who engage in more organizational citizenship behaviors (OCBs; see Chapter 1) and who are more willing to bring problems to the leaders' attention.66 Research also found that ethical leadership reduced interpersonal conflicts."

Companies with transformational leaders often show

greater agreement among top managers about the organization's goals, which yields superior organizational perfor-mance.53 The Israeli military has seen similar results, showing that transformational lead-ers improve performance by building consensus among group members."

"Integrity refers to

honesty and truthfulness"

"Ability encompasses an

individual's technical and interpersonal knowledge and skills."

"We attribute the following to leaders:

intelligence, outgoing personality, strong verbal skills, aggressiveness, understand-ing, and industriousness.100 At the organizational level, we tend, rightly or wrongly, to see leaders as responsible for both extremely negative and extremely positive performance"

"One theory of leadership suggests that in many situations,

leaders' actions are irrelevant.

"With the model, the individual's

leadership style is assumed to be permanent."

"Laissez-faire, which literally means "let it be" (do nothing), is the

most passive and therefore least effective of leader behaviors.49 Management by exception, in which leaders primarily "put out fires" when there are crisis exceptions to normal operating procedures, means leaders are often too late to be effective. Contingent reward leadership, which gives predetermined rewards for employee efforts, can be an effective style of leadership but will not get employees to go above and beyond the call of duty"

"Only with the four remaining styles—all aspects of transformational leadership—are leaders able to

motivate followers to perform above expectations and transcend their self-interest for the sake of the organization. Individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence (known as the "four I's") all result in extra effort from workers, higher productivity, higher morale and satisfac-tion, higher organizational effectiveness, lower turnover, lower absenteeism, and greater "organizational adaptability. Based on this model, leaders are most effective when they regularly use the four I's."

"In general,

organizations perform better when they have transformational leaders. "

"Online negotiations can also be hindered because

parties tend to express lower levels of trust. believe good leadership skills will soon include the ability to communicate support, trust, and inspiration through electronic communication and to accurately read emotions in others' messages. In electronic communication, writing skills are likely to become an extension of interpersonal skills in ways that are not yet defined"

"Second,

perceptions of leaders' behaviors are significant predictors of whether employees blame their leaders for failure, regardless of how the leaders assess themselves."

"Attribution theory suggests what's important is

projecting the appearance of be-ing a leader rather than focusing on actual accomplishments. Leader-wannabes who can shape the perception that they're smart, personable, verbally adept, aggressive, hardwork-ing, and consistent in their style can increase the probability their bosses, colleagues, and employees will view them as effective leaders"

"You might assume mentoring is valuable for objective outcomes like compensation and job performance, but

research suggests the gains are primarily psychological. Thus, while men-toring can have an impact on career success, it is not as much of a contributing factor as ability and personality. It may feel nice to have a mentor, but it doesn't appear that having a good men-tor, or any mentor, is critical to your career. Rather, mentorship is a boost to your confidence."

"Leaders often take

responsibility for developing future leaders"

"Experience and training are among the

substitutes that can replace the need for a leader's sup-port or ability to create structure."

"Transformational leadership has been

supported at diverse job levels and occupations "

"Authentic leadership focuses on

the moral aspects of being a leader"

"Benevolence means

the trusted person has your interests at heart, even if your in-terests aren't necessarily in line with theirs."

" Authentic leaders do not exhibit

these behaviors. They may also be more likely to promote corporate social responsibility"

"The effect of transformational leadership on performance can vary by the situation. In general,

transformational leadership has a greater impact on the bottom line in smaller, privately held firms than in more complex organizations.57 Transformational leader-ship can also vary depending on whether work is evaluated at the team or the individual level.58 Individual-focused transformational leadership empowers individual followers to develop ideas, enhance their abilities, and increase their self-efficacy. Team-focused transformational leaders emphasize group goals, shared values and beliefs, and unified efforts. Transformational leadership is not foolproof, though. For example, research in China suggested that, in team situations, the members' identification with the group could override the effects of transformational leadership."

"As you might expect, transformational leaders generate a higher level of

trust from their followers, which in turn is related to higher levels of team confidence and, ultimately, higher levels of team performance.82 Trust is a primary attribute associated with leadership; breaking it can have serious ad-verse effects on a group's performance"

"Their followers consider them ethical people. The primary quality produced by authentic leadership is

trust. Authentic leaders share information, encourage open communication, and stick to their ideals. The result: People come to have faith in them. Related to this behavior is the concept of humility, another characteristic of being authentic. Research indicates that leaders who model humility help followers to under-stand the growth process for their own development."

"Transformational leadership has ethical implications since these leaders change the

way followers think. Charisma, too, has an ethical component. Unethical leaders use their charisma to enhance power over followers, directed toward self-serving ends."

"Charismatic leadership places somewhat more emphasis on the way leaders communicate (are they passionate and dynamic?),

while transformational leadership focuses more on what they are communicating (is it a compelling vision?). Still, the theories are more alike than different. At their heart, both focus on the leader's ability to inspire followers, and sometimes they do so in the same way. Because of this, some researchers believe the concepts are somewhat interchangeable."

"Managers who break the psychological contract with workers, demonstrating they aren't trustworthy leaders,

will find employees are less satisfied and less committed, have a higher intent toward turnover, engage in less OCB, and have lower levels of task performance.93 Leaders who betray trust are especially likely to be evaluated negatively by followers if there is already a low level of LMX."

"Ethical and authentic leadership intersect at a number of junctures. Leaders who treat their followers ethically and authentically—

with fairness, especially by providing honest, frequent, and accurate information—are seen as more effective"

"Trust: Although you aren't completely in control of the situation,

you are willing to take a chance that the other person will come through for you. Followers who trust a leader are confident their rights and interests will not be abused."

"Trust between supervisors and employees has a number of specific advantages. Here are just a few from research:

• Trust encourages taking risks. Whenever employees decide to deviate from the usual way of doing things, or to take their supervisor's word on a new direction, they are taking a risk. In both cases, a trusting relationship can facilitate that leap. • Trust facilitates information sharing. When managers demonstrate they will give employees' ideas a fair hearing and actively make changes, employees are more willing to speak out.84 • Trusting groups are more effective. When a leader sets a trusting tone in a group, members are more willing to help each other and exert extra effort, which increases trust. • Trust enhances productivity. Employees who trust their supervisors tend to re-ceive higher performance ratings, indicating higher productivity"