CH 14 Power, Influence and Leadership

3. Contingency approaches

Fiedler's contingency model—task-oriented style and relationship-oriented style—and three dimensions of control: leader-member, task structure, position power House's path-goal revised leadership model—clarifying paths for subordinates' goals, and employee characteristics and environmental factors that affect leadership behaviors

Gender Studies: Do Women Have Traits That Make Them Better Leaders?

"High-Paying Careers Top More Young Women's Lists," declared the USA Today headline. A 2012 study by Pew Research Center found that 66% of 18- to 34-year-old women say being successful in a high-paying career is "one of the most important things" or "very important" in their lives—surpassing the percentage of young men, 59%, with the same stance. A major reason for this reversal from 1997 (then 56% young women, 58% young men with this attitude) may be that today's generation of females "are more highly skilled and educated, so they can compete in a different way," suggested one of the researchers. In addition, a New York research firm found that 55% of women and 57% of men aspire to be CEO, challenging the notion that more women aren't at the top because they don't want to be there. Indeed, women have been found to be as equally assertive as men. In fact, it's possible that women may have traits that make them better managers—indeed, better leaders—than men.

EIGHT LEADERSHIP STYLES OF THE REVISED PATH-GOAL THEORY

1. Path-goal clarifying ("Here's what's expected of you and here's how to do it.") Clarify performance goals. Provide guidance on how employees can complete tasks. Clarify performance standards and expectations. Use positive and negative rewards contingent on performance. 2. Achievement oriented ("I'm confident you can accomplish the following great things.") Set challenging goals. Emphasize excellence. Demonstrate confidence in employee abilities. 3. Work facilitation ("Here's the goal, and here's what I can do to help you achieve it.") Plan, schedule, organize, and coordinate work. Provide mentoring, coaching, counseling, and feedback to assist employees in developing their skills. Eliminate roadblocks. Provide resources. Empower employees to take actions and make decisions. 4. Supportive ("I want things to be pleasant, since everyone's about equal here.") Treat as equals. Show concern for well-being and needs. Be friendly and approachable. 5. Interaction facilitation ("Let's see how we can all work together to accomplish our goals.") Emphasize collaboration and teamwork. Encourage close employee relationships and sharing of minority opinions. Facilitate communication, resolve disputes. 6. Group-oriented decision making ("I want your suggestions in order to help me make decisions.") Pose problems rather than solutions to work group. Encourage members to participate in decision making. Provide necessary information to the group for analysis. Involve knowledgeable employees in decision making. 7. Representation & networking ("I've got a great bunch of people working for me whom you'll probably want to meet.") Present work group in positive light to others. Maintain positive relationships with influential others. Participate in organization-wide social functions and ceremonies. Do unconditional favors for others. 8. Value-based ("We're destined to accomplish great things.") Establish a vision, display passion for it, and support its accomplishment. Communicate high performance expectations and confidence in others' abilities to meet their goals. Give frequent positive feedback. Demonstrate self-confidence.

PETER DRUCKER'S TIPS FOR IMPROVING LEADERSHIP EFFECTIVENESS

1.Determine what needs to be done. 2.Determine the right thing to do for the welfare of the entire enterprise or organization. 3.Develop action plans that specify desired results, probable restraints, future revisions, check-in points, and implications for how one should spend his or her time. 4.Take responsibility for decisions. 5.Take responsibility for communication action plans and give people the information they need to get the job done. 6.Focus on opportunities rather than problems. Do not sweep problems under the rug, and treat change as an opportunity rather than as a threat. 7.Run productive meetings. Different types of meetings require different forms of preparation and different results. Prepare accordingly. 8.Think and say "we" rather than "I." Consider the needs and opportunities of the organization before thinking of your own opportunities and needs. 9.Listen first, speak last.

TEN CHARACTERISTICS OF THE SERVANT LEADER

1.Focus on listening. 2.Ability to empathize with others' feelings. 3.Focus on healing suffering. 4.Self-awareness of strengths and weaknesses. 5.Use of persuasion rather than positional authority to influence others. 6.Broad-based conceptual thinking. 7.Ability to foresee future outcomes. 8.Belief they are stewards of their employees and resources. 9.Commitment to the growth of people. 10.Drive to build community within and outside the organization.

The Evidence on Women Executives

A number of management studies conducted in the United States for companies ranging from high-tech to manufacturing to consumer services were reviewed by BusinessWeek. By and large, the magazine reports, the studies showed that "women executives, when rated by their peers, underlings, and bosses, score higher than their male counterparts on a wide variety of measures—from producing high-quality work to goal-setting to mentoring employees." Researchers accidentally stumbled on these findings about gender differences while compiling hundreds of routine performance evaluations and analyzing the results. In one study of 425 high-level executives, women won higher ratings on 42 of the 52 skills measured. What are the desirable traits in which women excel? Women were found to be better at teamwork and partnering, being more collaborative, seeking less personal glory, being motivated less by self-interest than in what they can do for the company, being more stable, and being less turf conscious. Women were also found to be better at producing quality work, recognizing trends, and generating new ideas and acting on them. Women used a more democratic or participative style than men, who were apt to use a more autocratic and directive style than women. Women have been found to display more social leadership, whereas men have been found to display more task leadership. Women executives, when rated by their peers, managers, and direct reports, scored higher than their male counterparts on a variety of effectiveness criteria.

The Ohio State Leadership Model

A second approach to leadership research was begun in 1945 at Ohio State University under Ralph Stogdill (mentioned in the last section). Hundreds of dimensions of leadership behavior were studied, resulting in what came to be known as the Ohio State Leadership Model. From surveys of leadership behavior, two major dimensions of leader behavior were identified, as follows.

2. The Path-Goal Leadership Model: House's Approach

A second contingency approach, advanced by Robert House in the 1970s and revised by him in 1996, is the path-goal leadership model, which holds that the effective leader makes available to followers desirable rewards in the workplace and increases their motivation by clarifying the paths, or behavior, that will help them achieve those goals and providing them with support. A successful leader thus helps followers by tying meaningful rewards to goal accomplishment, reducing barriers, and providing support, so as to increase "the number and kinds of personal payoffs to subordinates for work-goal attainment."

What Is More Important, Leadership Traits or Behaviors?

A team of researchers studied this question by analyzing all published studies between 1887 and 2008. Results demonstrated that both leadership traits and behaviors predicted leadership effectiveness criteria, but leader behaviors were more important. These results suggest that it is very important for organizations to train managers in how to effectively exhibit key leadership behaviors. The late Peter Drucker, the famed management expert, recommended a set of nine behaviors that managers can focus on to improve their leadership behaviors. These are shown below.

Managerial Leadership: Can You Be Both a Manager & a Leader?

Absolutely. The latest thinking is that individuals are able to exhibit a broad array of contrasting behaviors, (a concept called behavioral complexity). Thus, in the workplace, many people are capable of exhibiting managerial leadership, defined as "the process of influencing others to understand and agree about what needs to be done and the process of facilitating individual and collective efforts to accomplish shared objectives." Here the "influencing" part is leadership and the "facilitating" part is management. Managerial leadership may be demonstrated not only by managers appointed to their positions but also by those who exercise leadership on a daily basis but don't carry formal management titles (such as certain coworkers on a team).

Two Leadership Orientations: Tasks Versus Relationships

Are you task oriented or relationship oriented? That is, are you more concerned with task accomplishment or with people? To find out, you or your employees would fill out a questionnaire (known as the least preferred coworker, or LPC, scale), in which you think of the coworker you least enjoyed working with and rate him or her according to an eight-point scale of 16 pairs of opposite characteristics (such as friendly/unfriendly, tense/relaxed, efficient/inefficient). The higher the score, the more the relationship oriented the respondent; the lower the score, the more task oriented.

Transactional Leadership

As a manager, your power stems from your ability to provide rewards (and threaten reprimands) in exchange for your subordinates' doing the work. When you do this, you are performing transactional leadership, focusing on clarifying employees' roles and task requirements and providing rewards and punishments contingent on performance. Transactional leadership also encompasses the fundamental managerial activities of setting goals and monitoring progress toward their achievement When Apple's Steve Jobs resigned as CEO in August 2011 shortly before his death, the world mourned the loss of a visionary leader. His successor, Tim Cook, on the other hand, was celebrated as "a logistics whiz who had adroitly shepherded the company during Jobs' medical leaves." Other writers described him as "the former chief operating officer known as an operations genius" and lauded his success at helping lock down precious electronic components that let Apple escape unscathed during the supply-chain disruptions created by the 2011 tsunami in Japan. So, is Cook simply a competent caretaker of the machine Jobs created, or will he become the inspirational, visionary leader some observers think Apple needs? We shouldn't think of a transactional leader as being a mediocre leader—indeed, competent transactional leaders are badly needed. But transactional leaders are best in stable situations. What's needed in rapidly changing situations, as is often the case in many organizations today, is a transformational leader.

Being a Leader: Coping with Change

As the business world has become more competitive and volatile, doing things the same way as last year (or doing it 5% better) is no longer a formula for success. More changes are required for survival—hence the need for leadership. Leadership copes with change in three ways: Determining what needs to be done—setting a direction. Instead of dealing with complexity through planning and budgeting, leaders strive for constructive change by setting a direction. That is, they develop a vision for the future, along with strategies for realizing the changes. Creating arrangements of people to accomplish an agenda—aligning people. Instead of organizing and staffing, leaders are concerned with aligning people, Kotter says. That is, they communicate the new direction to people in the company who can understand the vision and build coalitions that will realize it. Ensuring people do their jobs—motivating and inspiring. Instead of controlling and problem solving, leaders try to achieve their vision by motivating and inspiring. That is, they appeal to "basic but often untapped human needs, values, and emotions," says Kotter, to keep people moving in the right direction, despite obstacles to change. Do Kotter's ideas describe real leaders in the real business world? Certainly many participants in a seminar convened by Harvard Business Review appeared to agree. "The primary task of leadership is to communicate the vision and the values of an organization," Frederick Smith, chairman and CEO of FedEx, told the group. "Second, leaders must win support for the vision and values they articulate. And third, leaders have to reinforce the vision and the values."

What Determines Leadership Effectiveness: Employee Characteristics & Environmental Factors Affect Leader Behavior

As the drawing indicates, two contingency factors, or variables—employee characteristics and environmental factors—cause some leadership behaviors to be more effective than others. Employee characteristics. Five employee characteristics are locus of control, task ability, need for achievement, experience, and need for path-goal clarity. Environmental factors. Two environmental factors are task structure (independent versus interdependent tasks) and work group dynamics. Leader behaviors. Originally House proposed that there were four leader behaviors, or leadership styles—directive ("Here's what's expected of you and here's how to do it"), supportive ("I want things to be pleasant, since everyone's about equal here"), participative ("I want your suggestions in order to help me make decisions"), and achievement-oriented ("I'm confident you can accomplish the following great things"). The revised theory expands the number of leader behaviors from four to eight. Thus, for example, employees with an internal locus of control are more likely to prefer achievement-oriented leadership or group-oriented decision-making (formerly participative) leadership because they believe they have control over the work environment. The same is true for employees with high task ability and experience. Employees with an external locus of control, however, tend to view the environment as uncontrollable, so they prefer the structure provided by supportive or path-goal clarifying (formerly directive) leadership. The same is probably true of inexperienced employees. Besides expanding the styles of leader behavior from four to eight, House's revision of his theory also puts more emphasis on the need for leaders to foster intrinsic motivation through empowerment. Finally, his revised theory stresses the concept of shared leadership, the idea that employees do not have to be supervisors or managers to engage in leader behavior but rather may share leadership among all employees of the organization.

CHARACTERISTICS OF BEING A MANAGER & A LEADER

Being a Manager Means ... Planning, organizing, directing, controlling Executing plans and delivering goods and services Managing resources Being conscientious Acting responsibly Putting customers first—responding to and acting for customers Mistakes can happen when managers don't appreciate people are the key resource, underlead by treating people like other resources, or fail to be held accountable Being a Leader Means ... Being visionary Being inspiring, setting the tone, and articulating the vision Managing people Being inspirational (charismatic) Acting decisively Putting people first—responding to and acting for followers Mistakes can happen when leaders choose the wrong goal, direction, or inspiration; overlead; or fail to implement the vision

3. Coercive Power: Influencing Behavior by Threatening or Giving Punishment

Coercive power, which all managers have, results from managers' authority to punish their subordinates. Punishment can range from verbal or written reprimands to demotions to terminations. In some lines of work, fines and suspensions may be used. Coercive power has to be used judiciously, of course, since a manager who is seen as being constantly negative will produce a lot of resentment among employees. But there have been many leaders who have risen to the top of major corporations—such as Disney's Michael Eisner, Miramax's Harvey Weinstein, and Apple's Steve Jobs—who have been abrasive and intimidating.

Trait Approaches to Leadership

Consider a leader dubbed "CEO of the Decade" in 2009 by Fortune magazine for 10 years of achievements in the fields of music, movies, and mobile phones, not to mention computing. "Remaking any one business is a career-defining achievement," wrote Fortune editor Adam Lashinsky; "four is unheard of." That leader was, of course, the late Steve Jobs of Apple. Did he have distinctive personality traits that might teach us something about leadership? Perhaps he did. He seemed to embody the traits of (1) dominance, (2) intelligence, (3) self-confidence, (4) high energy, and (5) task-relevant knowledge. These are the five traits that researcher Ralph Stogdill in 1948 concluded were typical of successful leaders. Stogdill is one of many contributors to trait approaches to leadership, which attempt to identify distinctive characteristics that account for the effectiveness of leaders.

Consideration—"What Do I Do to Show Consideration for My Employees?"

Consideration is leadership behavior that expresses concern for employees by establishing a warm, friendly, supportive climate. This behavior, which resembles Likert's "employee-centered behavior," is sensitive to subordinates' ideas and feelings and establishes mutual trust.

Kouzes & Posner's Research: Is Honesty the Top Leadership Trait?

During the 1980s, James Kouzes and Barry Posner surveyed more than 20,000 people around the world as to what personal traits they looked for and admired in their superiors. The respondents suggested that a credible leader should have four traits. He or she should be (1) honest, (2) forward looking, (3) inspiring, and (4) competent. These four traits, researchers concluded, constitute a leader's credibility, and the research suggests people want their leaders to be credible and to have a sense of direction. Although this research does reveal the traits preferred by employees, it has not, however, been able to predict which people might be successful leaders.

4. Expert Power: Influencing Behavior Because of One's Expertise

Expert power is power resulting from one's specialized information or expertise. Expertise, or special knowledge, can be mundane, such as knowing the work schedules and assignments of the people who report to you. Or it can be sophisticated, such as having computer or medical knowledge. Secretaries may have expert power because, for example, they have been in a job a long time and know all the necessary contacts. CEOs may have expert power because they have strategic knowledge not shared by many others.

What Do Leaders Want in Their Followers?

Followers vary, of course, in their level of compliance with a leader, with helpers (most compliant), showing deference to their leaders, independents (less compliant) distancing themselves, and rebels (least compliant) showing divergence. Leaders clearly benefit from having helpers (and, to some extent, independents). They want followers who are productive, reliable, honest, cooperative, proactive, and flexible. They do not want followers who are reluctant to take the lead on projects, fail to generate ideas, are unwilling to collaborate, withhold information, provide inaccurate feedback, or hide the truth.

3. It Requires Ethical Leaders

For a long time, top managers were assumed to be ethical. But in recent years, that notion has been disabused by news stories about scurrilous leaders ranging from the CEOs of Enron to pyramid schemer Bernard Madoff to failed commercial bankers paying themselves huge bonuses even as they accepted taxpayer bailouts and resisted regulation. With such high-profile revelations, the need for ethical leadership has become more apparent. Without honesty and trust, even transformational leaders lose credibility—not only with employees but also with investors, customers, and the public. To better ensure positive results from transformational leadership, top managers should follow the practices shown at right.

Is the LMX Model Useful?

It is not clear why a leader selects particular subordinates to be part of the in-group, but presumably the choice is made for reasons of compatibility and competence. Certainly, however, a positive (that is, in-group) leader-member exchange is positively associated with goal commitment, trust between managers and employees, work climate, satisfaction with leadership, and—important to any employer—job performance and job satisfaction. There is also a moderately strong positive relationship between LMX and organizational citizenship behaviors.

Coping with Complexity Versus Coping with Change: The Thoughts of John Kotter

In considering management versus leadership, retired Harvard Business School professor John Kotter suggests that one is not better than the other, that in fact they are complementary systems of action. The difference is that ... Management is about coping with complexity, Leadership is about coping with change.

Employee-Centered Behavior—"I'm Concerned More with the Needs of Employees"

In employee-centered behavior, managers paid more attention to employee satisfaction and making work groups cohesive. By concentrating on subordinates' needs they hoped to build effective work groups with high-performance goals.

Job-Centered Behavior—"I'm Concerned More with the Needs of the Job"

In job-centered behavior, managers paid more attention to the job and work procedures. Thus, their principal concerns were with achieving production efficiency, keeping costs down, and meeting schedules.

The University of Michigan Leadership Model

In the late 1940s, researchers at the University of Michigan came up with what came to be known as the University of Michigan Leadership Model. A team led by Rensis Likert began studying the effects of leader behavior on job performance, interviewing numerous managers and subordinates. The investigators identified two forms of leadership styles: job-centered and employee-centered.

Initiating Structure—"What Do I Do to Get the Job Done?"

Initiating structure is leadership behavior that organizes and defines what group members should be doing. It consists of the efforts the leader makes to get things organized and get the job done. This is much the same as Likert's "job-centered behavior."

Followers: What Do They Want, How Can They Help?

Is the quality of leadership dependent on the qualities of the followers being led? So it seems. Leaders and followers need each other, and the quality of the relationship determines how we behave as followers.

Applying Situational Theories: Five Steps

Is there a general strategy that managers can use to apply situational theories across many situations? One team of researchers thinks so. Their approach contains five steps, as follows. Step 1: Identify Important Outcomes: "What Goals Am I Trying to Achieve?" First, the manager must determine the goals he or she is trying to achieve for a specific point in time. Examples: For a coach, the goals might be "To win" or "Avoid injury to key players." For a sales manager, they might be "Increase sales 10%" or "Decrease customer complaints." Step 2: Identify Relevant Employee Leadership Behaviors: "What Management Characteristics Are Best?" Next managers need to identify which specific behaviors may be appropriate for the situation. Examples: Relying on the list in Table 14.6 on p. 457, a coach might prefer to stress achievement-oriented behaviors, which emphasize challenging goals and excellence. A sales manager might consider which work-facilitation and supportive behaviors from that list are best for his or her sales team. Step 3: Identify Situational Conditions: "What Particular Events Are Altering the Situation?" Fiedler and House both identify potential contingency factors to be considered, but there may also be other practical considerations. Examples: An injured star quarterback may force a coach to alter the strategy for a game. A virtual sales force spread around the world may affect the kind of leadership required of a sales manager. Step 4: Match Leadership to the Conditions at Hand: "How Should I Manage When There Are Multiple Conditions?" If there are too many possible situational conditions, the research may not be able to provide conclusive recommendations. Thus, managers will need to rely on their knowledge of organizational behavior to determine which leadership behavior is best for the situation at hand. Examples: Referring to Table 14.6, a coach with an injured star quarterback might decide to boost team confidence by drawing on supportive and values-based behavior. A sales manager in charge of a virtual sales force might decide to avoid directive leadership and use empowering leadership plus work-facilitation behaviors. Step 5: Determine How to Make the Match: "Change the Manager or Change the Manager's Behavior?" Implementing the decisions reached in Step 4, a manager can take either a contingency theory approach or a House path-goal theory approach. That is, the person in the leadership role can be changed or the manager can change his or her behavior. Examples: It is not possible for the coach to be changed for a championship game, so the coach will have to change his or her behavior. If the sales manager is considered too directive and doesn't like to empower others, he or she might be replaced or, alternatively, change his or her behavior.

The Best Leaders Are Both Transactional & Transformational

It's important to note that transactional leadership is an essential prerequisite to effective leadership, and the best leaders learn to display both transactional and transformational styles of leadership to some degree. Indeed, research suggests that transformational leadership leads to superior performance when it "augments" or adds to transactional leadership.

1. Trait approaches

Kouzes & Posner's five traits—honest, competent, forward-looking, inspiring, intelligent Gender studies—motivating others, fostering communication, producing high-quality work, and so on Leadership lessons from the GLOBE project—visionary and inspirational charismatic leaders who are good team builders are best worldwide

5. Three additional perspectives

Leader-member exchange (LMX) model—leaders have different sorts of relationships with different subordinates Greenleaf's servant leadership model—providing service to others, not oneself E-Leadership—using information technology for one-to-one, one-to-many, and between group and collective interactions

Leadership

Leadership is the ability to influence employees to voluntarily pursue organizational goals. In an effective organization, leadership is present at all levels, say Tom Peters and Nancy Austin in A Passion for Excellence, and it represents the sum of many things. Leadership, they say, "means vision, cheerleading, enthusiasm, love, trust, verve, passion, obsession, consistency, the use of symbols, paying attention as illustrated by the content of one's calendar, out-and-out drama (and the management thereof), creating heroes at all levels, coaching, effectively wandering around, and numerous other things."

1. Legitimate Power: Influencing Behavior Because of One's Formal Position

Legitimate power, which all managers have, is power that results from managers' formal positions within the organization. All managers have legitimate power over their employees, deriving from their position, whether it's a construction supervisor, ad account supervisor, sales manager, or CEO. This power may be exerted both positively or negatively—as praise or as criticism, for example.

Being a Manager: Coping with Complexity

Management is necessary because complex organizations, especially the large ones that so much dominate the economic landscape, tend to become chaotic unless there is good management. According to Kotter, companies manage complexity in three ways: Determining what needs to be done—planning and budgeting. Companies manage complexity first by planning and budgeting—setting targets or goals for the future, establishing steps for achieving them, and allocating resources to accomplish them. Creating arrangements of people to accomplish an agenda—organizing and staffing. Management achieves its plan by organizing and staffing, Kotter says—creating the organizational structure and hiring qualified individuals to fill the necessary jobs, then devising systems of implementation. Ensuring people do their jobs—controlling and problem solving. Management ensures the plan is accomplished by controlling and problem solving, says Kotter. That is, managers monitor results versus the plan in some detail by means of reports, meetings, and other tools. They then plan and organize to solve problems as they arise.

Do You Have What It Takes to Be a Leader?

Managers have legitimate power (as we'll describe) that derives from the formal authority of the positions to which they have been appointed. This power allows managers to hire and fire, reward and punish. Managers plan, organize, and control, but they don't necessarily have the characteristics to be leaders. Whereas management is a process that lots of people are able to learn, leadership is more visionary. As we've said, leaders inspire others, provide emotional support, and try to get employees to rally around a common goal. Leaders also play a role in creating a vision and strategic plan for an organization, which managers are then charged with implementing.

Behavioral Leadership Approaches

Maybe what's important to know about leaders is not their personality traits but rather their patterns of behavior or leadership styles. This is the line of thought pursued by those interested in behavioral leadership approaches, which attempt to determine the distinctive styles used by effective leaders. By leadership styles, we mean the combination of traits, skills, and behaviors that leaders use when interacting with others. What all models of leadership behavior have in common is the consideration of task orientation versus people orientation. Two classic studies came out of the universities of Michigan and Ohio State.

2. Behavioral approaches

Michigan model—two leadership styles: job-centered and employee-centered Ohio State model—two dimensions: initiating-structure behavior and consideration behavior

Which Style Is Most Effective?

Neither leadership style is effective all the time, Fiedler's research concludes, although each is right in certain situations. When task-oriented style is best. The task-oriented style works best in either high-control or low-control situations. Example of high-control situation (leader decisions produce predictable results because he or she can influence work outcomes): Suppose you were supervising parking-control officers ticketing cars parked illegally in expired meter zones, bus zones, and the like. You have (1) high leader-member relations because your subordinates are highly supportive of you and (2) high task structure because their jobs are clearly defined. (3) You have high position control because you have complete authority to evaluate their performance and dole out punishment and rewards. Thus, a task-oriented style would be best. Example of low-control situation (leader decisions can't produce predictable results because he or she can't really influence outcomes): Suppose you were a high school principal trying to clean up graffiti on your private-school campus, helped only by students you can find after school. You might have (1) low leader-member relations because many people might not see the need for the goal. (2) The task structure might also be low because people might see many different ways to achieve the goal. And (3) your position power would be low because the committee is voluntary and people are free to leave. In this low-control situation, a task-oriented style would also be best. When relationship-oriented style is best. The relationship-oriented style works best in situations of moderate control. Example: Suppose you were working in a government job supervising a group of firefighters fighting wildfires. You might have (1) low leader-member relations if you were promoted over others in the group but (2) high task structure, because the job is fairly well defined. (3) You might have low position power, because the rigidity of the civil-service job prohibits you from doing much in the way of rewarding and punishing. Thus, in this moderate-control situation, relationship-oriented leadership would be most effective. What do you do if your leadership orientation does not match the situation? Then, says Fiedler, it's better to try to move leaders into suitable situations rather than try to alter their personalities to fit the situations.

2. It Can Be Used to Train Employees at Any Level

Not just top managers but employees at any level can be trained to be more transactional and transformational. This kind of leadership training among employees should be based on an overall corporate philosophy that constitutes the foundation of leadership development.

The Three Dimensions of Situational Control

Once the leadership orientation is known, then you determine situational control—how much control and influence a leader has in the immediate work environment. There are three dimensions of situational control: leader-member relations, task structure, and position power. Leader-member relations—"Do my subordinates accept me as a leader?" This dimension, the most important component of situational control, reflects the extent to which a leader has or doesn't have the support, loyalty, and trust of the work group. Task structure—"Do my subordinates perform unambiguous, easily understood tasks?" This dimension refers to the extent to which tasks are routine, unambiguous, and easily understood. The more structured the jobs, the more influence a leader has. Position power—"Do I have power to reward and punish?" This dimension refers to how much power a leader has to make work assignments and reward and punish. More power equals more control and influence. For each dimension, the amount of control can be high—the leader's decisions will produce predictable results because he or she has the ability to influence work outcomes. Or it can be low—he or she doesn't have that kind of predictability or influence. By combining the three different dimensions with different high/low ratings, we have eight different leadership situations. These are represented in the diagram below.

Use Personality & Trait Assessments

Organizations may incorporate personality and trait assessments into their selection and promotion processes (being careful to use valid measures of leadership traits).

Personalized Power

People who pursue personalized power—power directed at helping oneself—as a way of enhancing their own selfish ends may give the word power a bad name.

1. The Contingency Leadership Model: Fiedler's Approach

Perhaps leadership is not characterized by universally important traits or behaviors. Perhaps there is no one best style that will work in all situations. This is the point of view of proponents of the contingency approach to leadership, who believe that effective leadership behavior depends on the situation at hand. That is, as situations change, different styles become appropriate. Let's consider two contingency approaches: (1) the contingency leadership model by Fiedler and (2) the path-goal leadership model by House.

Leadership Lessons from the GLOBE Project

Project GLOBE (Global Leadership and Organizational Behavior Effectiveness), you'll recall from Chapter 4, is a massive and ongoing attempt to develop an empirically based theory to "describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes." Surveying 17,000 middle managers working for 951 organizations across 62 countries, the researchers determined that certain attributes of leadership were universally liked or disliked. Visionary and inspirational charismatic leaders who are good team builders generally do the best. Self-centered leaders seen as loners or face-savers generally receive a poor reception worldwide.

Leader-Member Exchange (LMX) Leadership: Having Different Relationships with Different Subordinates

Proposed by George Graen and Fred Dansereau, the leader-member exchange (LMX) model of leadership emphasizes that leaders have different sorts of relationships with different subordinates. Unlike other models we've described, which focus on the behaviors or traits of leaders or followers, the LMX model looks at the quality of relationships between managers and subordinates. Also, unlike other models, which presuppose stable relationships between leaders and followers, the LMX model assumes each manager-subordinate relationship is unique (what behavioral scientists call a "vertical dyad").

5. Referent Power: Influencing Behavior Because of One's Personal Attraction

Referent power is power deriving from one's personal attraction. As we will see later in this chapter, this kind of power characterizes strong, visionary leaders who are able to persuade their followers by dint of their personality, attitudes, or background. Referent power may be associated with managers, but it is more likely to be characteristic of leaders.

What Do Followers Want in Their Leaders?

Research shows that followers seek and admire leaders who create feelings of ... Significance: Such leaders make followers feel that what they do at work is important and meaningful. Community: These leaders create a sense of unity that encourages followers to treat others with respect and to work together in pursuit of organizational goals. Excitement: The leaders make people feel energetic and engaged at work.

2. Reward Power: Influencing Behavior by Promising or Giving Rewards

Reward power, which all managers have, is power that results from managers' authority to reward their subordinates. Rewards can range from praise to pay raises, from recognition to promotions. Example: "Talking to people effectively is all about being encouraging," says Andrea Wong, president and CEO of Lifetime Network and Entertainment Services. She tries to use praise to reward positive behavior. "When I have something bad to say to someone, it's always hard because I'm always thinking of the best way to say it."

Socialized Power

Socialized power—power directed at helping others. This is the kind of power you hear in expressions such as "My goal is to have a powerful impact on my community."

Leadership & Influence: Using Persuasion to Get Your Way at Work

Steve Harrison, CEO of a career management firm, was escorting Ray, his newly hired chief operating officer, to meet people at a branch office. After greeting the receptionist and starting to lead Ray past her into the interior offices, Harrison felt himself being pulled back. He watched as Ray stuck out his hand, smiled, and said, "Good morning, Melissa, I'm Ray. I'm new here. It's so great to meet you!" He then launched into a dialogue with Melissa, to her obvious delight. Afterward, Harrison asked Ray, "What was that all about?" "It's called the two-minute schmooze," Ray replied. "Our receptionists meet or talk by phone to more people critical to our company in one day than you or I will ever meet in the course of a year." Ray would probably be considered a leader because of his ability to influence others—to get them to follow his wishes. There are nine tactics for trying to influence others, but some work better than others. In one pair of studies, employees were asked in effect, "How do you get your boss, coworker, or subordinate to do something you want?" The nine answers—ranked from most used to least used tactics—were as follows. 1. Rational Persuasion Trying to convince someone by using reason, logic, or facts. Example: "You know, all the cutting-edge companies use this approach." 2. Inspirational Appeals Trying to build enthusiasm or confidence by appealing to others' emotions, ideals, or values. Example: "If we do this as a goodwill gesture, customers will love us." 3. Consultation Getting others to participate in a decision or change. Example: "Wonder if I could get your thoughts about this matter." 4. Ingratiating Tactics Acting humble or friendly or making someone feel good or feel important before making a request. Example: "I hate to impose on your time, knowing how busy you are, but you're the only one who can help me." 5. Personal Appeals Referring to friendship and loyalty when making a request. Example: "We've known each other a long time, and I'm sure I can count on you." 6. Exchange Tactics Reminding someone of past favors or offering to trade favors. Example: "Since I backed you at last month's meeting, maybe you could help me this time around." 7. Coalition Tactics Getting others to support your effort to persuade someone. Example: "Everyone in the department thinks this is a great idea." 8. Pressure Tactics Using demands, threats, or intimidation to gain compliance. Example: "If this doesn't happen, you'd better think about cleaning out your desk." 9. Legitimating Tactics Basing a request on one's authority or right, organizational rules or policies, or express or implied support from superiors. Example: "This has been green-lighted at the highest levels." These influence tactics are considered generic because they are applied in all directions—up, down, and sideways within the organization. The first five influence tactics are considered "soft" tactics because they are considered friendlier than the last four "hard," or pressure, tactics. As it happens, research shows that of the three possible responses to an influence tactic—enthusiastic commitment, grudging compliance, and outright resistance—commitment is most apt to result when the tactics used are consultation, strong rational persuasion, and inspirational appeals. Knowing this, do you think you have what it takes to be a leader? To answer this, you need to understand what factors produce people of leadership character. We consider these in the rest of the chapter.

Key Positive Leadership Traits

Task competence Intelligence, knowledge, problem-solving skills Interpersonal competence Ability to communicate and ability to demonstrate caring and empathy Intuition Traits of character Conscientiousness, discipline, moral reasoning, integrity, honesty Biophysical traits Physical fitness, hardiness, energy level Personal traits Self-confidence, sociability, self-monitoring, extraversion, self-regulating, self-efficacy

E-Leadership: Managing for Global Networks

The Internet and other forms of advanced information technology have led to new possible ways for interacting within and between organizations (e-business) and with customers and suppliers (e-commerce). Leadership within the context of this electronic technology, called e-leadership, can involve one-to-one, one-to-many, within-group and between-group, and collective interactions via information technology. E-leadership means having to deal with quite a number of responsibilities, such as developing business opportunities through cooperative relationships, restructuring a company into global networks, decentralizing the company's organization, and energizing the staff. E-leaders, says one writer, "have a global mind-set that recognizes that the Internet is opening new markets and recharging existing ones. They don't bother fighting mere battles with competitors because they're too busy creating businesses that will surround and destroy them." Harvard Business School professor D. Quinn Mills, author of E-Leadership, suggests that individual companies will be replaced by much broader global networks that a single CEO will not be able to manage. Thus, while 20th-century management emphasized competition, he says, future organizations will run on knowledge sharing and open exchange.

Five Approaches to Leadership

The next five sections describe five principal approaches or perspectives on leadership, which have been refined by research. They are (1) trait, (2) behavioral, (3) contingency, (4) full-range, and (5) three additional.

Implications of Transformational Leadership for Managers

The research shows that transformational leadership yields several positive results. For example, it is positively associated with (1) measures of organizational effectiveness; (2) measures of leadership effectiveness and employee job satisfaction; (3) more employee identification with their leaders and with their immediate work groups; (4) commitment to organizational change; and (5) higher levels of intrinsic motivation, group cohesion, work engagement, setting of goals consistent with those of the leader, and proactive behavior. Besides the fact that, as we mentioned, the best leaders are both transactional and transformational, there are three important implications of transformational leadership for managers, as follows.

Use Management Development Programs

To enhance employee leadership traits, organizations such as General Electric and Verizon send targeted employees to management development programs that include management classes, coaching sessions, trait assessments, and the like.

Five Sources of Power

To really understand leadership, we need to understand the concept of power and authority. Authority is the right to perform or command; it comes with the job. In contrast, power is the extent to which a person is able to influence others so they respond to orders.

Servant Leadership: Meeting the Goals of Followers & the Organization, Not of Oneself

The term servant leadership, coined in 1970 by Robert Greenleaf, reflects not only his onetime background as a management researcher for AT&T but also his views as a lifelong philosopher and devout Quaker. Servant leadership focuses on providing increased service to others—meeting the goals of both followers and the organization—rather than to oneself. Servant leadership is not a quick-fix approach to leadership. Rather, it is a long-term, transformational approach to life and work. Ten characteristics of the servant leader are shown below. One can hardly go wrong by trying to adopt these characteristics.

In-Group Exchange Versus Out-Group Exchange

The unique relationship, which supposedly results from the leader's attempt to delegate and assign work roles, can produce two types of leader-member exchange interactions. In-group exchange: trust and respect. In the in-group exchange, the relationship between leader and follower becomes a partnership characterized by mutual trust, respect and liking, and a sense of common fates. Subordinates may receive special assignments and may also receive special privileges. Out-group exchange: lack of trust and respect. In the out-group exchange, leaders are characterized as overseers who fail to create a sense of mutual trust, respect, or common fate. Subordinates receive less of the manager's time and attention than those in in-group exchange relationships.

Does the Revised Path-Goal Theory Work?

There have not been enough direct tests of House's revised path-goal theory using appropriate research methods and statistical procedures to draw overall conclusions. Research on transformational leadership, however, is supportive of the revised model. Although further research is needed on the new model, it offers three important implications for managers: Use more than one leadership style. Effective leaders possess and use more than one style of leadership. Thus, you are encouraged to study the eight styles offered in path-goal theory so that you can try new leader behaviors when a situation calls for them. Help employees achieve their goals. Leaders should guide and coach employees in achieving their goals by clarifying the path and removing obstacles to accomplishing them. Modify leadership style to fit employee and task characteristics. A small set of employee characteristics (ability, experience, and need for independence) and environmental factors (task characteristics of autonomy, variety, and significance) are relevant contingency factors, and managers should modify their leadership style to fit them.

4. Intellectual Stimulation: "Let Me Describe the Great Challenges We Can Conquer Together"

These leaders are gifted at communicating the organization's strengths, weaknesses, opportunities, and threats so that subordinates develop a new sense of purpose. Employees become less apt to view problems as insurmountable or "that's not my department." Instead they learn to view them as personal challenges that they are responsible for overcoming, to question the status quo, and to seek creative solutions. Example: Nooyi seeks to have "a positive impact on the world," as she puts it. However, in 2012, with shareholders complaining about PepsiCo's slipping share price, she had to pull back somewhat from emphasizing nutritious products to boosting the old Pepsi brand. She compared the change to a racecar taking a pit stop as the company sought to regain momentum in its soft drink business. Still, as one commentator pointed out, "She needs to soothe investors, but she shouldn't surrender to them." He endorsed Nooyi's moves to achieve long-term gains—"that is, if Nooyi can fend off those looking for the financial equivalent of a sugar rush."

4 Additional Perspectives

Three additional kinds of leadership deserve discussion: (1) leader-member exchange (LMX) model of leadership, (2) servant leadership, and (3) e-leadership. We also consider (4) the role of followers.

Is the Trait Theory Useful

Traits play a central role in how we perceive leaders, and they ultimately affect leadership effectiveness. On the basis of past studies, we can suggest a list of positive traits that are important for leaders to have, as shown below. If assuming a leadership role interests you, you might wish to cultivate these traits for your future success, using personality tests to evaluate your strengths and weaknesses in preparing (perhaps with the aid of an executive coach) a personal development plan.

4. Full-range approach

Transactional leadership—clarify employee roles and tasks, and provide rewards and punishments Transformational leadership—transform employees to pursue organizational goals over self-interests, using inspirational motivation, idealized influence, individualized consideration, intellectual stimulation

2. Idealized Influence: "We Are Here to Do the Right Thing"

Transformational leaders are able to inspire trust in their followers because they express their integrity by being consistent, single-minded, and persistent in pursuit of their goal. Not only do they display high ethical standards and act as models of desirable values, but they are also able to make sacrifices for the good of the group. Example: Nooyi's goal of reinventing PepsiCo's product line to concentrate on more nutritional drinks and snacks (and double revenue to $30 billion by 2020) is ambitious, but it actually is in accord with the times. Americans are paying more attention to healthy eating, especially because of the U.S. obesity problem, and more consumers—and companies—are focusing on corporate responsibility and issues of greenness and sustainability.

3. Individualized Consideration: "You Have the Opportunity Here to Grow & Excel"

Transformational leaders don't just express concern for subordinates' well-being. They actively encourage them to grow and to excel by giving them challenging work, more responsibility, empowerment, and one-on-one mentoring. Example: When Indra Nooyi was chosen over her friend Mike White to lead PepsiCo, she went to great lengths to try to keep him on. "I treat Mike as my partner," she said. "He could easily have been CEO." At meetings, she always made sure he was seated at her right. (Even so, in 2010 he left to become CEO of DirectTV.)

1. Inspirational Motivation: "Let Me Share a Vision That Transcends Us All"

Transformational leaders have charisma ("kar-riz-muh"), a form of interpersonal attraction that inspires acceptance and support. At one time, charismatic leadership—which was assumed to be an individual inspirational and motivational characteristic of particular leaders, much like other trait-theory characteristics—was viewed as a category of its own, but now it is considered part of transformational leadership. Someone with charisma, then, is presumed to be more able to persuade and influence people than someone without charisma.81 A transformational leader inspires motivation by offering an agenda, a grand design, an ultimate goal—in short, a vision, "a realistic, credible, attractive future" for the organization, as leadership expert Burt Nanus calls it. The right vision unleashes human potential, says Nanus, because it serves as a beacon of hope and common purpose. It does so by attracting commitment, energizing workers, creating meaning in their lives, establishing a standard of excellence, promoting high ideals, and bridging the divide between the organization's problems and its goals and aspirations. Examples: Civil rights leader Martin Luther King Jr. had a vision—a "dream," as he put it—of racial equality. Candy Lightner, founder of Mothers Against Drunk Driving, had a vision of getting rid of alcohol-related car crashes. Apple Computer's Steve Jobs had a vision of developing an "insanely great" desktop computer. Indra Nooyi wants to develop healthier foods, while still making a profit. "Companies today are bigger than many economies," she says. "If companies don't do [responsible] things, who is going to?"

Transformational Leadership

Transformational leadership transforms employees to pursue organizational goals over self-interests. Transformational leaders, in one description, "engender trust, seek to develop leadership in others, exhibit self-sacrifice, and serve as moral agents, focusing themselves and followers on objectives that transcend the more immediate needs of the work group." Whereas transactional leaders try to get people to do ordinary things, transformational leaders encourage their people to do exceptional things—significantly higher levels of intrinsic motivation, trust, commitment, and loyalty—that can produce significant organizational change and results. Transformational leaders are influenced by two factors: -Individual characteristics. The personalities of such leaders tend to be more extroverted, agreeable, proactive, and open to change than nontransformational leaders. (Female leaders tend to use transformational leadership more than male leaders do.) -Organizational culture. Adaptive, flexible organizational cultures are more likely than are rigid, bureaucratic cultures to foster transformational leadership.

Full Range Leadership

We have considered the major traditional approaches to understanding leadership—the trait, behavioral, and contingency approaches. But newer approaches seem to offer something more by trying to determine what factors inspire and motivate people to perform beyond their normal levels. One recent approach proposed by Bernard Bass and Bruce Avolio, known as full-range leadership, suggests that leadership behavior varies along a full range of leadership styles, from take-no-responsibility (laissez-faire) "leadership" at one extreme, through transactional leadership, to transformational leadership at the other extreme. Not taking responsibility can hardly be considered leadership (although it often seems to be manifested by CEOs whose companies got in trouble, as when they say "I had no idea about the criminal behavior of my subordinates"). Transactional and transformational leadership behaviors, however, are both positive aspects of being a good leader.

The Lack of Women at the Top

We mentioned (in Chapter 11) that 56% of 357 global senior executives reported their companies have one or no women among their top executives. At Fortune 500 companies in 2011, females accounted for only 16.4% of corporate-officer positions. Interestingly, companies with the top 10 highest paid female CEOs produce significantly higher dividends than firms with the top 10 highest paid male CEOs—2.98% versus 2.45%, according to one study. So why, then, aren't more women in positions of leadership? Among the possible explanations: Unwillingness to compete or sacrifice. Though hardworking, many women simply aren't willing to compete as hard as most men are or are not willing to make the required personal sacrifices. As Jamie Gorelick, former vice chair of Fannie Mae but also mother of two children ages 10 and 15, said when declining to be considered for CEO: "I just don't want that pace in my life." Modesty. Women have a tendency to be overly modest and to give credit to others rather than taking it for themselves, which can undermine opportunities for promotions and raises. Lack of mentor. Women are less likely than their male counterparts to have access to a supportive mentor. Starting out lower, and more likely to quit. Perhaps most important, early-career success is pivotal; women MBAs start out at lower levels than men do in their first jobs, putting them at a disadvantage that is hard to overcome. Further, findings from a study of over 475,000 people from 20 corporations revealed that women quit their jobs more than men. Higher quit rates can deprive women from obtaining promotions and experiences needed for career advancement. Things may be gradually changing, though not as fast as they should. In 2012, there were 17 female CEOs (3.4%) heading the Fortune 500 largest companies and 19 more (3.6%) heading the next largest 500 firms. Females heading firms in the Standard & Poor's 500 index averaged earnings of $14.2 million in their latest fiscal years, 43% more than the male average. Moreover, with more than half of college students being women and with women making up half the workforce, it's possible that the new group rising through middle management could well lead to more than 100 Fortune 500 CEOs in the next 10 years, some believe, up from 36 today.

Four Key Behaviors of Transformational Leaders

Whereas transactional leaders are dispassionate, transformational leaders excite passion, inspiring and empowering people to look beyond their own interests to the interests of the organization. They appeal to their followers' self-concepts—their values and personal identity—to create changes in their goals, values, needs, beliefs, and aspirations. Transformational leaders have four key kinds of behavior that affect followers.

1. It Can Improve Results for Both Individuals & Groups

You can use the four types of transformational behavior just described to improve results for individuals—such as job satisfaction, organizational commitment, and performance. You can also use them to improve outcomes for groups—an important matter in today's organization, where people tend not to work in isolation but in collaboration with others.

Managers & Leaders: Not Always the Same

You see the words manager and leader used interchangeably all the time. However, as one pair of leadership experts has said, "Leaders manage and managers lead, but the two activities are not synonymous." "Management," says Tim Bucher, CEO of TastingRoom.com, a wine site, "is about doing things right—dotting the I's, crossing the T's.... But leadership is about doing the right thing.... You have to make a call, and in some ways it might be against company policy." Managers do planning, organizing, directing, and control. Leaders inspire, encourage, and rally others to achieve great goals. Managers implement a company's vision and strategic plan. Leaders create and articulate that vision and plan. The table opposite summarizes key characteristics of each.

THE ETHICAL THINGS TOP MANAGERS SHOULD DO TO BE EFFECTIVE TRANSFORMATIONAL LEADERS

•Employ a code of ethics. The company should create and enforce a clearly stated code of ethics. •Choose the right people. Recruit, select, and promote people who display ethical behavior. •Make performance expectations reflect employee treatment. Develop performance expectations around the treatment of employees; these expectations can be assessed in the performance-appraisal process. •Emphasize value of diversity. Train employees to value diversity. •Reward high moral conduct. Identify, reward, and publicly praise employees who exemplify high moral conduct.