OB ppt for presentation.pptx

Organizational Behavior
Instructor. Tarekegn
T.(PhD, Asst. Prof of
Management)
1

Content of a Course
Foundational Functional Ethical Critical
1-Nature of OB 2-Individual
behavior
5-Organizational
culture
3-Group behavior
4-Leadership

Chap-1: Fundamentals of OB
• The name organizational behavior (OB) has been
used by some to signify the micro end of the
spectrum of organization studies, but OB as a term
covers the range from micro to macro topics.

What is OB?
• In the most general sense, OB is the scientific study of
individual and group behavior in formal organizational
settings.
• OB is the science of human behavior at work.
• Essence of an organization is “patterned” human behavior.
• When behavior is patterned, some structure is imposed on
individuals.
• An organization cannot exist when people just “do their
own thing” without any awareness of the behavior of
others.

Historical Influences in Organizational Behavior
• Early 1900s Development and growth of Scientific
Management (Taylor)
• Beginning of the scientific study of organizational
structure (Weber).
• 1920s–1930s Hawthorne Studies; growth of
unionization.

• 1940s–1950s; publication of Vitele’s book Motivation
and Morale in Industry; development of the “Human
Relations” perspective.
• The term ‘organizational behavior’ was used for the
first time by Chris Argyris in 1957 in his classic book,
Personality and Qrganization.
• Administrative Science Quarterly was launched in
1956 and published a great number of ‘organization’
studies.

• 1960s-1970s- “multi-level” perspective in organizational
behavior; increasing attention to nontraditional topics such as
stress, work-family conflict, and retirement.
• By the early 1970s or so, the field was clearly broadening and
expanding from its largely psychological roots, and ASQ, was a
major force in this development.
• 1980s—1990s Increasing globalization of the economy;
changing workforce demographics; increasing reliance on
temporary or contingent employees; redefining the concept of
a “job.”

What is the major differences?
Organizational Theory
• Focuses on the organisation as the unit of analysis.
• Organizational attributes such as goals, technology,
and culture are the subject of study.
• Organizational theory often uses an across-
organizational approach or macro perspective in
gathering new knowledge.
Difference between OT, OB & HRM

Human resources management
 Attempts to apply the principles of the behavioral sciences
in the workplace
 While OB is somewhat more concept oriented, HRM is
more concerned with applied techniques and behavioral
technology.
 HRM tries to provide a link between the individual and the
organisation by designing and implementing systems to
attract, develop and motivate individuals within the
organisation

OB
 Emphasis on the
scientific study of
behavioral phenomena
at individual and group
level
 Level of analysis -
Micro/theory oriented
OT
 Focuses largely on
organizational and
environmental
phenomena
 Level of analysis -
Macro/theory oriented

 HRM
 Focuses on the application of behavioral knowledge
in selecting, placing, and training personal.
 Level of analysis - Micro/application oriented field of
study

OB looks at consistencies
• What is common about behaviour, and helps predictability?
OB is more than common sense
• Systematic study, based on scientific evidence
OB has few absolutes
OB takes a contingency approach
• Considers behaviour in context
The Rigour of OB

• Psychology
• Sociology
• Social Psychology
• Anthropology
• Political Science
Contributing Disciplines to the OB Field

(cont’d)

Chapter 2:
Individual behavior
Personality, Perception, attitude, Motivation,
satisfaction

The Environment
• Organization
• Work group
• Job
• others
Variables Influencing
Individual Behavior
The Person
• Skills & abilities
• Personality
• Perceptions
• Attitudes
•Values
• Ethics
Behavior
B = f(P,E)
B
E
P

Propositions of individual behavior
• Behavior(Action)—function of a continuous,
multi-directional interaction between person and
situation
• Person—active in process
• Changed by situations
• Changes situations
• People vary in many characteristics
• Two situational interpretations
• The objective situation
• Person’s subjective view of the situation

1. Personality
Personality - A relatively stable set of characteristics that
influences an individual’s behavior
Personality shows the total inner and outer potentiality
of a person

Major Personality Characteristics
Big Five Personality Model/theory(FFM):
Extraversion Gregarious, assertive,
sociable
Agreeableness Cooperative, warm,
agreeable
Conscientiousness Hardworking, organized,
dependable
Emotional stability Calm, self-confidant, cool
Openness to
experience
Creative, curious,
cultured

Major Personality Attributes Influencing OB
Other Major Personality CXS(Cont’d)
Locus of control
Self-efficacy
Self-esteem
Self-monitoring
Risk taking
Type A & B personality

Locus of Control
A.Locus of Control
Locus of Control
Thedegreetowhichpeoplebelievetheyare
mastersof theirownfate.
Internals
Individualswhobelievethattheycontrolwhathappensto
them.
Externals
Individualswhobelievethatwhathappenstothemis
controlledbyoutsideforcessuchasluckor chance.

Major Personality Characteristics in Organizations(Cont’d)
Self-Efficacy - beliefs and expectations about one’s ability to
accomplish a specific task effectively
Sources of self-efficacy:
• Prior experiences and prior success
• Behavior models (observing success)
• Persuasion
• Assessment of current physical & emotional
capabilities

Major Personality Characteristics(Cont’d)
Self-Esteem
Feelings of Self Worth
Success tends
to increase
self-esteem
Failure tends
to decrease
self-esteem

Major Personality Characteristics(Cont’d)
Self-Monitoring
Behavior based on cues from people & situations
• High self-monitors
• flexible: adjust behavior
according to the
situation and the
behavior of others
• can appear
unpredictable &
inconsistent
• Low self-monitors
• act from internal states
rather than from
situational cues
• show consistency
• less likely to respond to
work group norms or
supervisory feedback

Type A Personality
Type A Personality
The theory describes Type A individuals as ambitious,
rigidly organized, highly status- conscious, sensitive,
impatient, take on more than they can handle, want
other people to get to the point, anxious, proactive, and
concerned with time management.
People with Type A personalities are often high-
achieving "workaholics", push themselves with
deadlines, and hate both delays and ambivalence.

Type B personality
Type B personality
They typically work steadily, and may enjoy
achievement, although they have a greater
tendency to disregard physical or mental stress
when they do not achieve.
When faced with competition, they may focus
less on winning or losing than their Type A
counterparts, and more on enjoying the game
regardless of winning or losing.
Unlike the Type A personality's rhythm of multi-
tasked careers, Type B individuals are sometimes
attracted to careers of creativity: writer,
counsellor, therapist, actor or actress.

2. A
TTITUDES
Employee attitudes are the evaluations employees
make, ranging from positive to negative, about
objects, people, or events.
For example, the statement, “I really think my job is great,”
is a positive job attitude, and “My job is boring and
tedious” is a negative job attitude.
What Are the Main Components of Attitudes?
Three components of attitudes are:
cognition,
affect, and
behavior.

Components of Attitude:
Cognitive component (Evaluation):
A description of or belief in the way things are.
Example: My pay is low or My supervisor is unfair
Affective component(Feeling):
Affect is the emotional or feeling segment of an attitude
Example “I am angry over how little I’m paid”
- I dislike my supervisor
Behavioral component(Action): describes an intention
to behave in a certain way toward someone or
something.
Ex: “I’m going to look for another job that pays better.”

3.JobSatisfaction
• It is “a pleasurable or positive emotional state resulting from
the appraisal of one’s job or job experience.
• There are various factors which leads to job Satisfaction.
The most important dimensions are:
1. The work itself: The extent to which the job provides
the individual with interesting tasks, opportunities for
learning, and the chance to accept responsibility the
greater will be Job Satisfaction.
• The content of the work itself is a major source of satisfaction.
- For example, if a job provide autonomy in the design and
execution of work as well as feedback from the supervisors,
peers and customers the higher will be job satisfaction.
• Job satisfaction also depend upon the person for example
one person will find teaching job interesting where as the
others will not.

2. Pay.
• Employees will be satisfied from their pay and over all job if
their pay meet their basic needs and is equitable with others in
the organization and other organizations.
• Money not only helps people attain their basic needs but is
also instrumental in providing upper-level need satisfaction.
• Employees often see pay as a reflection of how management
views their contribution to the organization. Fringe benefitsare
also important, but they are not as influential.
• For people who are poor or who live in poor countries, pay
does correlate with job satisfaction and overall happiness.

3.Promotionopportunities.
• The chances for advancement in the organization
also effect job satisfaction.
• Individuals who are promoted on the basis of
seniority often experience job satisfaction but
not as much as those who are promoted on
the basis of performance.

4.Supervision.
• The abilities of the supervisor to provide technical
assistance and behavioral support also effect job
satisfaction.
• There seem to be main three dimensions of supervisory style that
affect
job satisfaction.
1. One is justice, that supervisor maintain amongst
employees.
2. Second is employee-centeredness, which is
measured by the degree to which a supervisor takes
a personal interest and cares about the employee.
3. The third dimension is participation.
 Supervisors shall allow their people to participate in decisions
that affect their own jobs.
- In most cases, this approach leads to higher job satisfaction.

5. Motivation
 Motivation is the process that account for an
individual’s intensity, direction, and persistence
of effort toward attaining a goal.
Intensity describes how hard a person tries.
A direction toward expected goal accomplishment.
Finally, motivation has a persistence dimension. This
measures how long a person can maintain effort.
Motivated individuals stay with a task long enough to
achieve their goal.

What motivates employees?
Extrinsic motivation (monetary and other than financial)
Financial incentives(Monetary rewards)
Others than monetary rewards like:
 Empowerment
Trust
job rotation (From one job to other)
job enlargement (Adding Duties)
job enrichment(incorporation of motivating
factors into a job)
Intrinsic motivation where people are driven by what’s inside
them:
Growth
Inclusion
Purpose

Three Groups of Motivational
Theories
• Internal
– Suggest that variables within the individual give rise to motivation
and behavior
– Example: Maslow’s hierarchy of needs theory
• Process
– Emphasize the nature of the interaction between the individual
and the environment
– Example: Expectancy theory(Behavior is motivated by expected
results).
• External
– Focus on environmental elements to explain behavior
– Example: Two-factor theory

Maslow’s Hierarchy of Needs
Physiological
Safety and Security
Love (Social)
Esteem
SA

Motivational Theories X and Y
Theory X
A set of assumptions of how to manage
individuals who are motivated by lower
order needs
Theory Y
A set of assumptions of how to manage
individuals who are motivated by higher
order needs

Mass low Theories Applied to
Needs Hierarchy
Physiological
Safety and Security
Love (Social)
Esteem
SA Theory Y – a set of
assumptions of how to
manage individuals
motivated by higher
order needs
Theory X – a set of
assumptions of how to
manage individuals
motivated by lower
order needs

Alderfer’s ERG Theory
Existence
Relatedness
Growth
Physiological
Safety and Security
Love (Social)
Esteem
SA

McClelland’s Need Theory:
Need for Achievement
Need for Achievement – a
manifest (easily perceived) need
that concerns individuals’ issues
of excellence, competition,
challenging goals, persistence,
and overcoming difficulties

Need for Power
Need for Power – a manifest
(easily perceived) need that
concerns an individual’s need to
make an impact on others,
influence others, change people
or events, and make a difference
in life

Need for Affiliation
Need for Affiliation – a manifest (easily
perceived) need
that concerns an
individual’s need
to establish and maintain warm, close,
intimate relationships with other
people

Self-actualization
3 Motivational Need Theories
Maslow Alderfer McClelland
Higher
Order
Needs
Lower
Order
Needs
Esteem
self
interpersonal
Safety and Security
interpersonal
physical
Need for
Achievement
Need for
Power
Relatedness Need for
Affiliation
Existence
Growth
Belongingness
(social and love)
Physiological
McGregor
Theory Y
Theory X

Herzberg’s Two-Factor Theory
Hygiene Factor – work condition related to dissatisfaction
caused by discomfort or pain
• maintenance factor
• contributes to employee’s feeling not dissatisfied
• contributes to absence of complaints
Motivation Factor – work condition related to the
satisfaction of the need for psychological growth
• job enrichment
• leads to superior performance & effort

Motivation–Hygiene
Theory of Motivation
Hygiene factors avoid job
dissatisfaction
• Company policy and
administration
• Supervision
• Interpersonal relations
• Working conditions
• Salary
• Status
• Security
• Achievement
• Achievement recognition
• Work itself
• Responsibility
• Advancement
• Growth
• Salary?
Motivation factors
increase job satisfaction

6. Perception
 Perception is the process of receiving information about and
making sense of the world around us.
 It involves deciding which information to notice, how to
categorize this information and how to interpret it within the
framework of our existing knowledge.
 The process by which people select, organize, interpret, and
respond to information from the world around them
 Perception (consciously and unconsciously) involves searching for,
obtaining, and processing information in the mind in an attempt to
make sense of the world”

Factors that Influence Perception

Chap-3
Foundations of Group Behavior

Groups
Two or more individuals, interacting
and interdependent, who come
together to achieve particular
objectives
Formal
• Defined by the organization’s structure
Informal
• Neither formally structured nor organizationally determined

8-57
Four Types of Groups
Formal Groups
• Command – determined
by the organization chart
• Task – working together
to complete a job task
Informal Groups
• Interest – affiliate to
attain a specific
objective of shared
interest
• Friendship –
members have one or
more common
characteristics

8-58
Why Do People Join Groups?
• Security
• Status
• Self-esteem
• Affiliation
• Power
• Goal achievement

8-59
The Five-Stage Model
of Group Development
1
• Forming:
• Uncertainty about purpose, structure, and leadership
2
• Storming:
• Intragroup conflict as members resist constraints
3
• Norming:
• Group is cohesive with strong group identity
4
• Performing:
• Group fully functional and working toward goals
5
• Adjourning:
• For temporary groups: breaking up

Stages of Team Development _cont’d
1. Forming:
• Focus: Orientation
• Team Behavior: Dependence on leader
• Leader Role: Direct
• Leader Activities:
• Outline objectives, roles, working procedures
• Communicate expectations
• Establish ground rules
• Learn about your team members
• Provide opportunities for team to get acquainted
60

2. Storming:
• Focus: Clarification
• Team Behavior: Conflict
• Leader Role: Coach and Mediate
• Encourage direct and frequent communication
• Establish communication guidelines
• Appreciate differences
• Surface, mediate, and resolve conflict
• Reassure team this behavior is normal
61

3. Norming:
• Focus: Communication
• Team Behavior: Cooperation
• Leader Role: Facilitate
• Support members in their emerging roles
• Enable effective communication and flow of data
• Focus on listening and summarizing agreements
• Provide positive and constructive feedback
• Reinforce collaborative work relationships
• Arrange a team-building event
62

4. Performing:
• Focus: Productivity
• Team Behavior: Interdependence
• Leader Role: Delegate
• Allow a high level of autonomy
• Turn over day-to-day responsibility
• Acknowledge successes and contributions
• Encourage professional development to enhance skills and
motivate the team
63

5. Adjourning:
• Focus: Closure
• Team Behavior: Loss or disengagement
• Leader Role: Support
• Evaluate and review results
• Acknowledge and celebrate achievements
• Bring closure to the project/team
64

8-65
Group Properties
• Roles
• Norms
• Status
• Size
• Cohesiveness

8-66
Group Property 1: Roles
The set of expected behavior patterns that are
attributed to occupying a given position in a social unit.
Various parts or roles are played by group members.

8-67
Group Property 2: Norms
• Norms are the Set of belief's, feelings, and attitudes
commonly shared by group members. These are also
referred to as rules or standards of behaviour that apply to
group members.
• Norms serve three functions namely
• Powerful means of
influencing behavior
• Performance Norms

8-68
Lessons from
the Hawthorne Studies
• Productivity increased because groups were
paid attention to by the observers – not
because of changes in environment
• Workers in groups do not maximize individual
economic rewards
• Group standards are set and enforced by the
group itself

8-69
Group Property 3: Status
A socially defined position or rank given to groups or
group members by others
• Determined by:
 The power a person wields over others
 A person’s ability to contribute to a group’s goals
 An individual’s personal characteristics

8-70
Group Property 4: Size
• Smaller groups are faster at completing tasks –
members perform better
• Large groups are consistently better at problem
solving
• Social Loafing - tendency to expend less effort
working in a group than as an individual

8-71
Social Loafing
Causes:
• Equity theory –
unequal distribution of
work
• Dispersion of
responsibility – clouds
the relationship
between individual
inputs and group
output
Prevention:
• Set group goals
• Increase inter-group
competition
• Engage in peer
evaluation
• Distribute group rewards
based on members’
individual contributions

Group Property 5: Cohesiveness
The degree to which members of the
group are attracted to each other
and motivated to stay in the group
High Cohesiveness
- Unity
- Interactive
- Positive Feelings
- Ability to Cope with Problems
- More Productive
Low Cohesiveness
- Negative Feelings
- More Problems
- Less Productive

8-73
Group Decision Making
Strengths
• Generate more
complete information
and knowledge
• Increased diversity of
views
• Increased acceptance
of a solution
Weaknesses
• Takes longer
• Conformity pressures
• Discussions can be
dominated by one or a
few members
• Ambiguous
responsibility for the
final outcome

8-74
Effectiveness & Efficiency
Effectiveness:
• Accuracy – group is better than average individual but
worse than most accurate group member
• Speed – individuals are faster
• Creativity – groups are better
• Degree of Acceptance – groups are better
Efficiency: Groups are generally less efficient

8-75
Groupthink Symptoms
A deterioration of individual’s mental efficiency, reality
testing, and moral judgments as a result of group
pressures
Occurs when members:
 Rationalize away resistance to assumptions
 Pressure doubters to support the majority
 Doubters keep silent/minimize their misgivings
 Interprets silence as a “yes” vote

8-76
Minimizing
Groupthink
• Limit group size (≤10)
• Encourage group leaders to
actively seek input from all
members and avoid
expressing their own opinions
• Appoint a “devil’s advocate”

8-77
Group Decision-Making
Techniques
Interacting groups meet face-to-face and rely on verbal
and non-verbal interactions to communicate
Brainstorming
 Generates a list of creative alternatives
 Problem: production blocking
Nominal Group Technique (NGT)
 Restricts discussion during the decision-making process to
encourage independent thinking

8-78
Implications for Managers
• Positive relationship between role perception and
performance evaluation
• Group norms can affect individual performance
either positively or negatively
• Status inequities adversely impact productivity
and performance
• Group size impacts effectiveness
• Cohesiveness can influence productivity

What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of goals.
Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.

What Is Leadership?
Leadership
The ability to influence
a group toward the
achievement of a vision
or set of goals.
Management
Use of authority inherent in
designated formal rank to
obtain compliance from
organizational members.

Leadership Styles
Door Number 1:
Authoritarian
Who put him in charge?
Who makes the
decisions?
Does anyone get a say?

What do YOU
think?
Wow! That was
a really good
idea!
Thank you all for working together!
Door Number 2: Democratic

Bored and unresponsive
Whatever attitude
Nothing gets accomplished
Door Number 3: Laissez-
faire

Models and Theories of
Leadership
Trait Theory (30’s)
Behavioral Theory
(40’s and 50’s)
Contingency Theory
(60s and 70s)
Transformational
and Transactional
Theory (80s up)

Theories of Leadership
(focus of research)
traits skills context ethical
Behavioral
Trait Contingency Transformational
styles/types of leaders
1930s 1940s/50s 1960s/70s 1980s
followers

Trait theories
Traits Theories of Leadership
Theories that consider personality,
social, physical, or intellectual traits
to differentiate leaders from non-
leaders.
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge

Trait Theory
A theory that concerns itself solely with leader
characteristics (Stogdill, 1948; Mann 1959)
Studies identified certain personal characteristics
that appear to differentiate leaders from followers
Basic premise is that leaders are born

Behavioral Theories
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from nonleaders.
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.

Behavioral Theory
• Trait research was unsuccessful, thus tried to
isolate behavior characteristics of effective leaders
• What effective leaders WERE and what they DID
• Behavior can be learned, thus if supported we
could train people to be leaders and teach
leadership
• Several studies were done to examine leader
behavior and focused on two aspects of
Leadership behavior
• Leadership Functions: task-related activities that must
be performed by leader to perform effectively
• Leadership Styles: various patterns of behavior favored
by leaders during process of directing and influencing

Behavioral Approach
• Ohio State Studies/U. of Michigan
• Initiating Structure/Production Orientation
• Consideration/Employee Orientation
• Assumption: Leaders can be trained
• Goal: Develop leaders
• Problem: Effective behaviors do not generalize across
situations

Leadership Styles
- Ohio State
Low Structure
And
High Consideration
High Structure
And
High Consideration
Democratic
Low Structure
And
Low Consideration
Laissez-Faire
High Structure
And
Low Consideration
Authoritarian
(Low) Initiating Structure (High)
(Low)
Consideration
(High)

Initiating Structure
The extent to which a leader is
likely to define and structure his or
her role and those of subordinates
in the search for goal attainment.
Consideration
The extent to which a leader is
likely to have job relationships
characterized by mutual trust,
respect for subordinate’s ideas, and
regard for their feelings.
Ohio State Studies

University of Michigan Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking
a personal interest in the needs of
employees and accepting individual
differences among members.
Production-Oriented Leader
One who emphasizes technical or task
aspects of the job.

CONTINGENCY THEORIES
• All Consider the Situation
• Fiedler’s Contingency Model
• Hersey and Blanchard’s Situational Leadership Model
• Path Goal Theory
Assumptions underlying the different models:
Fiedler: Leader’s style is fixed
Other’s: Leader’s style can and should be changed

Fiedler Model
• Leader: Style is Fixed (Task oriented vs. Relationship
oriented)
• Considers Situational Favorableness for Leader
• Leader-member relations
• Task structure
• Position power
 Key Assumption
– Leader must fit situation; options to accomplish
this:
– Select leader to fit situation
– Change situation to fit leader

Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect subordinates have
in their leader.
Task Structure
The degree to which the job assignments are procedurized.
Position Power
Influence derived from one’s formal structural position in the
organization; includes power to hire, fire, discipline, promote,
and give salary increases.

Contingency Approach: Hersey & Blanchard
Situational Model
• Considers Leader Behaviors (Task & Relationship)
• Assumes Leaders CAN change their behaviors
• Considers Followers as the Situation
• Follower Task maturity (ability & experience)
• Follower Psychological maturity (willingness to take
responsibility)
Assumptions
–Leaders can and should change their style to fit their followers’
degree of readiness (willingness and ability)
–Therefore, it is possible to TRAIN leaders to better fit their style
to their followers.

Hersey and Blanchard’s
Situational Leadership Theory
Situational Leadership Theory (SLT)
 A contingency theory that focuses on followers’
readiness; the more “ready” the followers (the more
willing and able) the less the need for leader support
and supervision.
Employees typically become better developed on a task as
they reside appropriate guidance, gain job experience, and
see the reward for cooperative behavior both the
competence to perform a given task and the commitment to
do so can vary among employees, therefore development
levels demand different response from leaders.
.

Hersey and Blanchard’s
Situational Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness; the more “ready” the followers (the more
willing and able) the less the need for leader support
and supervision.
LOW Amount of Follower Readiness HIGH
Amount of Leader Support &
Supervision Required
HIGH LOW

Leadership Styles and Follower
Readiness
(Hersey and Blanchard)
Willing
Unwilling
Able
Unable Directive
High Task
and
Relationship
Orientations
Supportive
Participative
Monitoring
Follower
Readiness
Leadership
Styles

Charismatic Leadership Theory
Charismatics Influence Followers By:
1. Articulating the vision
2. Setting high performance expectations
3. Conveying a new set of values
4. Making personal sacrifices
Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors.

KEY CHARACTERISTICS OF CHARISMATIC LEADERS
1. Vision and articulation. Has a vision—expressed as an idealized
goal—that proposes a future better than the status quo; and is able
to clarify the importance of the vision in terms 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. Environmental sensitivity. Able to make realistic assessments of
the environmental constraints and resources needed to bring about
change.
4. Sensitivity to follower needs. Perceptive of others’ abilities and
responsive to their needs and feelings.
5. Unconventional behavior. Engages in behaviors that are perceived
as novel and counter to norms.

TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP
• Contingent Reward
• Management by Exception
(active)
• Management by Exception
(passive)
• Laissez-Faire
• Idealized Influence
• Inspiration Motivation
• Intellectual Stimulation
• Individual Consideration
Transactional Leaders
Leaders who guide or motivate their
followers in the direction of
established goals by clarifying role
and task requirements.
Transformational Leaders
Leaders who provide individualized
consideration and intellectual
stimulation, and who possess charisma.

CHARACTERISTICS OF TRANSACTIONAL LEADERS
Four dimensions:
Contingent Reward: Contracts exchange of rewards for effort,
promises rewards for good performance, recognizes
accomplishments.
Management by Exception (active): Watches and searches for
deviations from rules and standards, takes corrective action.
Management by Exception (passive): Intervenes only if
standards are not met.
Laissez-faire leadership:
- leaders simply avoid leadership responsibilities.

Four Dimension of Transformational leadership(Bass, 1995)
A. Idealized influence- leader serves as a charismatic role model to
followers.
 These leaders are admired, respected, and trusted; followers identify
and pursue their leaders
B. Inspirational motivation:
 leader states a vision that is attractive and encouraging to followers
 Leaders strengthen followers by viewing the future by optimism
C. Intellectual stimulation
 is generated when transformational leaders stimulate followers’
creativity by questioning and challenging them.
D. individualized consideration: refers to the degree in which leaders
providing support, encouragement, and coaching to followers
 Listen carefully to individual needs of followers

CONTEMPORARY LEADERSHIP ROLES: MENTORING
Mentoring Activities:
• Present ideas clearly
• Listen well
• Empathize
• Share experiences
• Act as role model
• Share contacts
• Provide political
guidance
Mentor
A senior employee who
sponsors and supports a
less-experienced employee
(a protégé).

CONTEMPORARY LEADERSHIP ROLES:
SELF-LEADERSHIP
Creating self leaders:
• Model self-leadership.
• Encourage employees to create
self-set goals.
• Encourage the use of self-
rewards.
• Create positive thought patterns.
• Create a climate of self-
leadership.
• Encourage self-criticism.
Self-Leadership
A set of processes
through which
individuals control
their own behavior.

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