GB 370 Unit 12
the transactional leadership approach
the leader focuses on getting employees to achieve organizational goals. According to leader-member exchange (LMX) approach, the unique, trust-based relationships leaders develop with employees is the key to leadership effectiveness.
Vroom and Yetton's Normative Decision model
- a decision-making tool to help leaders determine how much involvement they should seek when making decisions -go through a list of questions and you work your way through a funnel based on your response
People oriented behaviors (aka consideration)
- include showing concern for employee feelings and treating employees with respect -genuinely care about the well-being of their employees and they demonstrate their concern in their actions and decisions
dictator
If a person is relying on force and punishment, the person is a
improve your charisma by following these suggestions
Have a vision Tie the vision to history. Watch your body language Make sure that employees have confidence in themselves
Leader decision making
How leaders make decisions & the influence of the styles on leader effectiveness and employee reactions
IQ is a threshold quality: it matters for entry- to high-level management jobs, but once you get there, it no longer helps leaders because most leaders already have high IQ
The psychologist who coined the term emotional intelligence, Daniel Goleman, believes that
Team competence
What is the ability of this particular team to solve the problem? Let's imagine that this is a new team that just got together and they have little demonstrated expertise to work together effectively. We will answer this as low, or L.
inspirational motivation
come up with a vision that is inspiring to others.
Servant leadership approach
defines the leader's role as serving the needs of others. According to this approach, the primary mission of the leader is to develop employees and help them reach their goals
higher self esteem
more confidence, affects their image in the eyes of their followers
task-oriented behaviors
more strongly relating to leader effectiveness
Achievement-oriented leaders
set goals for employees and encourage them to react them. This style challenges employees and focuses their attention on work related goals. Effective wen employees have both high ability levels and achievement motivation levels.
In large, bureaucratic, and rule-bound organizations
such as the government and the military, a leader's traits may have less to do with how the person behaves and whether the person is a successful leader Ex:bravery, not as helpful in business settings
Leaders with high self-esteem
support subordinates more, and punish more effectively when needed
people who are effective as leaders
tend to have a moral compass and demonstrate honesty and integrity
Leadership
the act of influencing others to work toward a goal
low-quality LMX relationships
the leader and the member have lower levels of trust, liking, and respect toward each other. These relationships do not have to involve actively disliking each other, but the leader and member do not go beyond their formal job descriptions in their exchanges.
people-oriented behaviors
leading to employee satisfaction
laissez-faire decision making
leave employees alone to make the decision; the leader provides minimum guidance and involvement in the decision. -tends to be more problematic
Leaders whose integrity is questioned
lose their trustworthiness, and they hurt their company's business along the way.
Participative leaders
make sure employees are involved in making important decisions Effective when employees have high ability levels and decisions to be made are personally relevant to them
Contingent rewards
mean rewarding employees for their accomplishments.
Limitations of behavioral approaches
-fell out of favor because they neglected the environment in which behaviors are demonstrated Explained: researchers were trying to find a set of identified behaviors that were applicable in all circumstances, but no circumstance is exactly alike which makes that completely unrealistic -specifying the conditions under which these behaviors are more effective may be a better approach.
Task-oriented behaviors (aka initiating structure)
-involve structuring the roles of subordinates, providing them with instructions, and behaving in ways that will increase the performance of the group -directives given to employees to get things done, ensure goals are met
Goal alignment
Are the employee goals aligned with organizational goals? In this instance, employee and organizational goals may be aligned because you both want to ensure that employees are healthier. So let's say the alignment is high, and follow H.
Robert House's path-goal theory of leadership
Based on the expectancy theory of motivation which suggests that employees are motivated when they believe/expect that Their effort will yield high performance Their high performance will be rewarded The rewards are valuable to them
the context in which leadership occurs, which paved the way to contingency theories of leadership.
Because of the inconsistency of results, researchers realized the importance of
transactional leaders use three other methods
Contingent rewards Active management by exception Passive management by exception
Group expertise
Does the group have expertise in this decision-making area? The group in question has little information about which alternatives are costlier or more user friendly. We'll say group expertise is low. Follow the path from L.
Leader expertise
Does the leader have all the information needed to make a high-quality decision? In our example, leader expertise is low. You do not have information regarding what your employees need or what kinds of stress reduction resources they would prefer.
Importance of commitment
Does the leader need employee cooperation to implement the decision? In our example, the answer is high, because employees may simply ignore the resources if they do not like them. Follow the path through H.
achieve servant leadership
Don't ask what your employees can do for you One of your key priorities should be to help employees reach their goals Be humble Be open with your employees. Find ways of helping the external community
Likelihood of commitment.
If the leader makes the decision alone, what is the likelihood that the employees would accept it? Let's assume that the answer is Low. Based on the leader's experience with this group, they would likely ignore the decision if the leader makes it alone. Follow the path from L.
high emotional intelligence (EQ).
In addition to having high IQ, effective leaders tend to have
a high level of self-awareness, motivation, empathy, and social skills
People with high EQ demonstrate
Which leadership style do you think is more effective, transformational or transactional?
Research shows that transformational leadership is a powerful influence over leader effectiveness as well as employee satisfaction
leadership emergence (whether someone is viewed as a leader by others) and leadership effectiveness.
Several of the Big Five personality traits have been related to
formal leaders
Some leaders hold a position of authority and may use the power that comes from their position, as well as their personal power, to influence others; they are called
Extraversion
Strongest trait related to leadership Being outgoing, talkative, sociable, and enjoying social situations
Decision significance
The decision has high significance because the approach chosen needs to be effective at reducing employee stress for the insurance premiums to be lowered. In other words, there is a quality requirement to the decision
Self-Esteem
The degree to which people are at peace with themselves and have an overall positive assessment of their self-worth and capabilities seems to be relevant to whether they will be viewed as a leader.
Why is transformational leadership more effective?
The key factor may be trust
to be aware that not all traits are equally effective in predicting leadership potential across all circumstances
The key to benefiting from the findings of trait researchers is
In small entrepreneurship organizations
The key to benefiting from the findings of trait researchers is to be aware that not all traits are equally effective in predicting leadership potential across all circumstances.
Researchers started following a contingency approach to leadership—rather than trying to identify traits or behaviors that would be effective under all conditions, the attention moved toward specifying the situations under which different styles would be effective
Under which conditions are different leadership styles more effective
managers and CEOs are often viewed as responsible
What happens when people and organizations fail
Fiedler's Contingency Theory
a leaders style is measured by a scale called Least Preferred Coworker (LPC) scale -think of your least preferred coworker, then rate this person in terms of friendliness, cooperation, kindness -If you can still say kind things about this LPC, you would have a high score... means you are people oriented and you work well with others -If you did not like them on a personal level, Low LPC -also means you are a task oriented person
Transformational leaders have four tools in their possession
are charismatic inspirational motivation intellectual stimulation
high-quality LMX members
are more satisfied with their jobs, more committed to their companies, have higher levels of clarity about what is expected of them, and perform at a higher level
informal leaders
are without a formal position of authority within the organization but demonstrate leadership by influencing others through personal forms of power.
According to Goleman, what differentiates effective leaders from ineffective ones
becomes their ability to control their own emotions and understand other people's emotions, their internal motivation, and their social skills (Goleman, 2004).
agreeableness
being affable, tolerant, sensitive, trusting, kind, and warm
Neuroticism
being anxious, irritable, temperamental, and moody
openness
being curious, original, intellectual, creative, and open to new ideas
Conscientiousness
being organized, systematic, punctual, achievement oriented, and dependable
Leaders
do not rely on the use of force to influence people. Instead, people willingly adopt the leader's goal as their own goal
The authentic leadership approach
embraces this value: its key advice is "be yourself."
democratic decision making
employees participate in the making of the decision. -employees are usually most satisfied using this method, but effects on decision quality tend to be weaker
transactional leaders
ensure that employees demonstrate the right behaviors because the leader provides resources in exchange
The transformational leadership approach
h highlights the importance of leader charisma, inspirational motivation, intellectual stimulation, and individualized consideration as methods of influence.
transformational leaders
increase the intrinsic motivation of their followers, build more effective relationships with employees, increase performance and creativity of their followers, increase team performance, and create higher levels of commitment to organizational change efforts
Active management by exception
involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring
Passive management by exception
is similar in that it involves leaving employees alone, but in this method, the manager waits until something goes wrong before coming to the rescue.
Trust
is the belief that the leader will show integrity, fairness, and predictability in his or her dealings with others.
Fiedler's theory's biggest contribution may be
it highlights the importance of a leader's ability to change styles, depending on the circumstances. House's path-goal theory underlines the importance of varying one's style, depending on the situation."
Transformational leaders
lead employees by aligning employee goals with the leader's goals. Thus, employees working for transformational leaders start focusing on the company's well-being rather than on what is best for them as individual employees
authoritarian decision making
leaders make the decision alone without necessarily involving employees in the decision-making process. -researchers found this method to be least favorable
relationship-oriented leaders
leaders would be effective when situational favorableness was moderate
to be viewed as leaders in their environment
people who have high mental abilities are more likely
Leader-Member Exchange (LMX) Theory
proposes that the type of relationship leaders have with their followers (members of the organization) is the key to understanding how leaders influence employees.
Supportive leaders
provide emotional support. Encouraging, know them on a personal level. Effective when employees are stressed or performing boring jobs
Directive leaders
provide specific directions to their employees. They lead employees by clarifying role expectations, setting schedules, and making sure that employees know what to do on a given workday. The theory predicts that the directive style will work well when employees are experiencing role ambiguity on the job.
General mental ability
psychologists refer to as "g" and which is often called IQ in everyday language, has been related to a person's emerging as a leader within a group
Big Five Model
rates an individual according to openness to experience, conscientiousness, extraversion, agreeableness, and Neuroticism.
Charisma
refers to behaviors leaders demonstrate that inspire confidence, commitment, and admiration toward the leader
high-quality LMX relationships,
the leader forms a trust-based relationship with the member. The leader and member like each other, help each other when needed, and respect one another. In these relationships, the leader and the member are both ready to go above and beyond their job descriptions to promote the other's ability to succeed.
House's path-goal theory states that
the leader's job is to ensure that employees view their effort as leading to performance and increase the belief that performance would be rewarded
transformational leaders rely on
their charisma, persuasiveness, and personal appeal to change and inspire their companies
such as intelligence (both mental ability and emotional intelligence), personality (extraversion, conscientiousness, openness to experience, self-esteem), and integrity
traits are consistently related to leadership
agreeable people who are modest, good natured, and avoid conflict are less likely to be perceived as leaders
traits that are negatively related to emerging as a leader and being successful as a leader
Contemporary approaches to leadership include
transformational leadership, leader-member exchange, servant leadership, and authentic leadership.
Kenneth Blanchard and Paul Hersey's Situational Leadership Theory (SLT)
which argues that leaders must use different leadership styles depending on their followers' development level says employees readiness (defined as a combination of their competence and commitment levels) is the key factor determining the proper leadership style. -recognizes that followers are a key to a leader's success
charismatic leadership
which is among the contemporary approaches to leadership, may be viewed as an example of a trait approach.
intellectual stimulation
which means that they challenge organizational norms and status quo, and they encourage employees to think creatively and work harder.
individualized consideration
which means that they show personal care and concern for the well-being of their followers.
task-oriented leaders
would be most effective when the situation was the most and the least favorable
low quality exchange members
you may not have access to the positive work environment available to the high-quality LMX members low LMX employees may feel that their situation is unfair they are more likely to be given the benefit of the doubt.
