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- 1. Robbins & Judge
Organizational Behavior
13th Edition
Contemporary Issues in Leadership
Contemporary Issues in Leadership
Bob Stretch
Southwestern College
© 2009 Prentice-Hall Inc. All rights reserved. 13-1
- 2. Chapter Learning Objectives
Chapter Learning Objectives
After studying this chapter, you should be able to:
– Show how framing influences leadership effectiveness.
– Define charismatic leadership and show how it influences
followers.
– Contrast transformational with transactional leadership and discuss
how transformational leadership works.
– Define authentic leadership and show why ethics and trust are vital
to effective leadership.
– Identify the three types of trust.
– Demonstrate the importance of mentoring, self-leadership, and
virtual leadership to our understanding of leadership.
– Identify when leadership may not be necessary.
– Explain how to find and create effective leaders.
– Assess whether charismatic and transformational leadership
generalizes across cultures.
© 2009 Prentice-Hall Inc. All rights reserved. 13-2
- 3. Inspirational Approaches to Leadership
Inspirational Approaches to Leadership
The focus is leader as
communicator
Framing:
– A way of communicating that shapes
meaning
– Selective highlighting of facts and
events
– Ignored in traditional leadership
studies
Two contemporary leadership
theories:
– Charismatic Leadership
– Transformational Leadership
© 2009 Prentice-Hall Inc. All rights reserved. 13-3
- 4. Charismatic Leadership
Charismatic Leadership
House’s Charismatic Leadership Theory:
– Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors
Four characteristics of charismatic leaders:
– Have a vision
– Are willing to take personal risks to achieve the vision
– Are sensitive to follower needs
– Exhibit behaviors that are out of the ordinary
Traits and personality are related to charisma
People can be trained to exhibit charismatic behaviors
E X H I B I T 13-1
E X H I B I T 13-1
© 2009 Prentice-Hall Inc. All rights reserved. 13-4
- 5. How Charismatic Leaders Influence Followers
How Charismatic Leaders Influence Followers
A four-step process:
1. Leader articulates an
attractive vision
• Vision Statement:
A formal, long-term strategy to attain goals
• Links past, present, and future
1. Leader communicates high performance expectations
and confidence in follower ability
2. Leader conveys a new set of values by setting an
example
3. Leader engages in emotion-inducing and often
unconventional behavior to demonstrate convictions
about the vision
© 2009 Prentice-Hall Inc. All rights reserved. 13-5
- 6. Charismatic Leadership Issues
Charismatic Leadership Issues
Importance of vision
– Must be inspirational, value-centered, realizable, and given
with superior imagery and articulation
Charismatic effectiveness and situation
– Charisma works best when:
• The follower’s task has an ideological component
• There is a lot of stress and uncertainty in the environment
• The leader is at the upper level of the organization
• Followers have low self-esteem and self-worth
Dark Side of Charisma
– Ego-driven charismatics allow their self-interest and
personal goals to override the organization’s goals
© 2009 Prentice-Hall Inc. All rights reserved. 13-6
- 7. Beyond Charisma: Level-5 Leaders
Beyond Charisma: Level-5 Leaders
Very effective leaders who possess the four typical
leadership traits
– Individual competency
– Team skills
– Managerial competence
– Ability to stimulate others to high performance
Plus one critical new trait…
– A blend of personal humility and professional will
– Personal ego needs are focused toward building a great
company
– Take responsibility for failures and give credit to others for
successes
© 2009 Prentice-Hall Inc. All rights reserved. 13-7
- 8. Transactional & Transformational Leadership
Transactional & Transformational Leadership
Transactional Leaders
– Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task
requirements
Transformational Leaders
– Inspire followers to transcend their own self-interests for the
good of the organization; they can have a profound and
extraordinary effect on followers
Not opposing, but complementary, approaches to
leadership
– Great transformational leaders must also be transactional;
only one type is not enough for success
© 2009 Prentice-Hall Inc. All rights reserved. 13-8
- 9. Characteristics of the Two Types of Leaders
Characteristics of the Two Types of Leaders
Transactional Transformational
Contingent Reward: Idealized Influence:
– Contracts exchange of rewards – Provides vision and sense of
for effort, promises rewards for mission, instills pride, gains respect
good performance, recognizes and trust
accomplishments Inspiration:
Management by Exception: – Communicates high expectations,
– Active: Watches and searches uses symbols to focus efforts,
for deviations from rules and expresses important issues simply
standards, takes corrective Intellectual Stimulation:
action
– Promotes intelligence, rationality,
– Passive: Intervenes only if
and problem solving
standards are not met
Laissez-Faire: Individualized Consideration:
– Gives personal attention, coaches,
– Abdicates responsibilities,
advises
avoids making decisions
E X H I B I T 13-2
E X H I B I T 13-2
© 2009 Prentice-Hall Inc. All rights reserved. 13-9
- 10. Full Range of Leadership Model
Full Range of Leadership Model
Leadership styles
listed from
passive to very
active
Note the
ineffective styles
are mostly
transactional
It is all about
influencing
followers
E X H I B I T 13-3
E X H I B I T 13-3
© 2009 Prentice-Hall Inc. All rights reserved. 13-10
- 11. Issues with Transformational Leadership
Issues with Transformational Leadership
Basis for Action:
– Transformational leadership works by encouraging followers
to be more innovative and creative and by providing
ambitious goals
Evaluation Based on the Research:
– This theory does show high correlations with desired
outcomes
– This style of leadership can be taught
Transformational vs. Charismatic Leadership:
– Similar concepts, but transformational leadership may be
considered a broader concept than charisma.
– Instrument-based testing shows the measures to be roughly
equivalent
© 2009 Prentice-Hall Inc. All rights reserved. 13-11
- 12. Authentic Leadership: Ethics and Trust
Authentic Leadership: Ethics and Trust
Authentic Leaders:
– Ethical people who know who they are, know what they
believe in and value, and act on those values and beliefs
openly and candidly
– Primary quality is trust
Build trust by:
– Sharing information
– Encouraging open communication
– Sticking to their ideals
Still a new topic; needs more research
© 2009 Prentice-Hall Inc. All rights reserved. 13-12
- 13. Ethics, Trust, and Leadership
Ethics, Trust, and Leadership
Ethics touch on many leadership styles
– As the moral leaders of organizations, CEOs must
demonstrate high ethical standards
– Socialized charismatic leadership: leaders who model ethical
behaviors
Trust:
– The positive expectation that another person will not act
opportunistically
– Composed of a blend of familiarity and willingness to take a
risk
– Five key dimensions: integrity, competence, consistency,
loyalty, and openness
E X H I B I T 13-4
E X H I B I T 13-4
© 2009 Prentice-Hall Inc. All rights reserved. 13-13
- 14. Five Key Dimensions of Trust
Five Key Dimensions of Trust
Integrity
– Honesty and truthfulness
Competence
– An individual’s technical and interpersonal
knowledge and skills
Consistency
– An individual’s reliability, predictability,
and good judgment in handling situations
Loyalty
– The willingness to protect and save face for
another person
Openness
– Reliance on the person to give you the full
truth
© 2009 Prentice-Hall Inc. All rights reserved. 13-14
- 15. Three Types of Trust
Three Types of Trust
Deterrence-based Trust
– Trust based on fear of reprisal if the
trust is violated
Knowledge-based Trust
– Trust based on behavioral predictability
that comes from a history of interaction
Identification-based Trust
– Trust based on a mutual understanding
of one another’s intentions and
appreciation of the other’s wants and
desires
© 2009 Prentice-Hall Inc. All rights reserved. 13-15
- 16. Basic Principles of Trust
Basic Principles of Trust
Mistrust drives out trust
Trust begets trust
Trust can be regained
Mistrusting groups self-
destruct
Mistrust generally reduces
productivity
© 2009 Prentice-Hall Inc. All rights reserved. 13-16
- 17. Contemporary Leadership Roles: Mentoring
Contemporary Leadership Roles: Mentoring
Mentor:
– A senior employee who sponsors and supports a less-
experienced employee (a protégé)
– Good teachers present ideas clearly, listen, and empathize
– Two functions:
• Career
– Coaching, assisting, sponsoring
• Psychosocial
– Counseling, sharing, acting as a role model
– Can be formal or informal
– Mentors tend to select protégés who are similar to them in
background: may restrict minorities and women
© 2009 Prentice-Hall Inc. All rights reserved. 13-17
- 18. Contemporary Leadership Roles: Self-Leadership
Contemporary Leadership Roles: Self-Leadership
Self-Leadership
– A set of processes through which individuals
control their own behavior
– Effective leaders (superleaders) help followers
to lead themselves
– Important in self-managed teams
To engage in self-leadership:
1. Make a mental chart of your peers and
colleagues
2. Focus on influence and not on control
3. Create opportunities; do not wait for them
© 2009 Prentice-Hall Inc. All rights reserved. 13-18
- 19. Contemporary Leadership Roles: Online Leadership
Contemporary Leadership Roles: Online Leadership
Leadership at a Distance: Building Trust
– The lack of face-to-face contact in electronic
communications removes the nonverbal cues that support
verbal interactions.
– There is no supporting context to assist the receiver with
interpretation of an electronic communication.
– The structure and tone of electronic messages can strongly
affect the response of receivers.
– An individual’s verbal and written communications may not
follow the same style.
– Writing skills will likely become an extension of
interpersonal skills.
© 2009 Prentice-Hall Inc. All rights reserved. 13-19
- 20. A Challenge to the Leadership Construct
A Challenge to the Leadership Construct
Attribution Theory of Leadership
– The idea that leadership is merely an attribution that people
make about other individuals
– Qualities attributed to leaders:
• Leaders are intelligent, outgoing, have strong verbal skills, are
aggressive, understanding, and industrious.
• Effective leaders are perceived as consistent and unwavering
in their decisions.
• Effective leaders project the appearance of being leaders.
© 2009 Prentice-Hall Inc. All rights reserved. 13-20
- 21. Another Challenge to the Leadership Construct
Another Challenge to the Leadership Construct
Substitutes and Neutralizers for Leadership
Source: Based on S. Kerr and J. M. Jermier, “Substitutes for Leadership:
Their Meaning and Measurement,” Organizational Behavior and Human
Relationship- Task-
oriented oriented
Defining Characteristics Leadership Leadership
Individual
Experience/training No effect on Substitutes for
Professionalism Substitutes for Substitutes for
Indifference to rewards Neutralizes Neutralizes
Performance, December 1978, p. 378.
Job
Highly structured task No effect on Substitutes for
Provides its own feedback No effect on Substitutes for
Intrinsically satisfying Substitutes for No effect on
Organization
Explicit formalized goals No effect on Substitutes for
Rigid rules and procedures No effect on Substitutes for
Cohesive work groups Substitutes for Substitutes for
E X H I B I T 13-5
E X H I B I T 13-5
© 2009 Prentice-Hall Inc. All rights reserved. 13-21
- 22. Finding and Creating Effective Leaders
Finding and Creating Effective Leaders
Selection
– Review specific requirements for the job
– Use tests that identify personal traits associated with
leadership, measure self-monitoring, and assess emotional
intelligence
– Conduct personal interviews to determine candidate’s fit
with the job
– Keep a list of potential candidates
Training
– Recognize that all people are not equally trainable
– Teach skills that are necessary for employees to become
effective leaders
– Provide behavioral training to increase the development
potential of nascent charismatic employees
© 2009 Prentice-Hall Inc. All rights reserved. 13-22
- 23. Global Implications
Global Implications
Certain types of leadership behaviors work better in
some cultures than in others
Charismatic/Transformational Leadership
– Seems to work across cultures
– May be an “universal” aspect of leadership in its focus on:
• Vision and foresight
• Providing encouragement
• Trustworthiness
• Dynamic, positive, and proactive traits
Globalization may be the cause of these common
concerns – we may be able to train a “universal”
manager, if that person is culturally sensitive!
© 2009 Prentice-Hall Inc. All rights reserved. 13-23
- 24. Summary and Managerial Implications
Summary and Managerial Implications
Companies are looking for
transformational leaders – even if
they only “look the part”
Transformational style crosses
borders reasonably well
Effective managers must build
trust with those they lead
Leadership selection and training
are important to long-term success
© 2009 Prentice-Hall Inc. All rights reserved. 13-24
- 25. All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise,
without the prior written permission of the publisher. Printed in the
United States of America.
Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall