C H A P T E R: F O U R T E E N Leadership in Organizational Settings 14 Leadership at Lakeport Beverages Teresa Cascioli’s leadership has transformed Hamilton- based Lakeport Beverage Corp. into a major competitor in Ontario’s take-home beer market. Courtesy of Lakeport Beverages Corp. 2 What is Leadership? Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members. Courtesy of Lakeport Beverages Corp. 3 Perspectives of Leadership Competency Perspective Implicit Behavioural Leadership Leadership Perspective Perspective Perspectives Transformational Contingency Perspective Perspective 4 Seven Leadership Competencies Emotional • Perceiving, assimilating, understanding, Intelligence and regulating emotions • Truthfulness Integrity • Translates words into deeds • Inner motivation to pursue goals Drive • Need for achievement, quest to learn Leadership • High need for socialized power to Motivation accomplish team’s or firm’s goals more 5 Seven Leadership Competencies (con’t) • High self-efficacy regarding ability to Self-Confidence lead others • Above average cognitive ability Intelligence • Can analyze problems/opportunities Knowledge of • Familiar with business environment the Business • Aids intuitive decision making 6 In Search of Leader Integrity Studies say integrity is the most important leadership characteristic Also called “authentic leadership” Individual acts with sincerity Has a higher moral capacity to judge dilemmas Yet, most people think business leaders lack integrity: 73% say CEOs of large firms can’t be trusted (US) Nearly 40% do not trust their immediate boss (UK) Approx 50% say business wrongdoing has undermined their trust in employers (Australia) 7 Competency Perspective Limitations Implies a universal approach But some competencies might not be valuable in all situations Alternative combinations of competencies might work just as well Not necessarily the same set needed Some traits are subjective Supports implicit leadership theory Several competencies indicate leadership potential, not actual leadership 8 Leader Behaviour Perspective People-oriented behaviours Showing mutual trust and respect Concern for employee needs Desire to look out for employee welfare Task-oriented behaviours Assign specific tasks Ensure employees follow rules Set “stretch goals” to achieve performance capacity 9 Path-Goal Leadership Styles Directive Task-oriented behaviours Supportive People-oriented behaviours Participative Encouraging employee involvement Achievement-oriented Using goal setting and positive self- fulfilling prophecy 10 Path-Goal Leadership Model Employee Contingencies Leader Leader Behaviours Effectiveness • Directive • Employee motivation • Supportive • Employee • Participative satisfaction • Achievement- • Leader oriented acceptance Environmental Contingencies 11 Path-Goal Contingencies Employee Contingencies Directive Supportive Participative Achievement Skill/Experience low low high high Locus of Control external external internal internal Environmental Contingencies Directive Supportive Participative Achievement Task Structure nonroutine routine nonroutine ? Team Dynamics –ve norms low cohesion +ve norms ? 12 Other Contingency Leader Theories Situational Leadership Model (Hersey/Blanchard) Effective leaders vary style with follower “readiness” Leader styles – telling, selling, participating, and delegating Fiedler’s Contingency Model Leadership style is stable --based on personality Best style depends on situational control -- leader-member relations, task structure, position power 13 Leadership Substitutes Contingencies that limit a leader’s influence or make a particular leadership style unnecessary. Examples: Training and experience replace task-oriented leadership Cohesive team replaces supportive leadership Self-leadership replaces achievement-oriented leadership Evidence suggests that substitutes might help, but don’t completely substitute for real leadership 14 Ray Young Transforms GM Brazil Ray G. Young, the Canadian executive who now leads General Motors’ operations in Brazil, is making an impact in that highly competitive market. “He has brought a sense of purpose to General Motors that they didn’t seem to have before,” says industry consultant Ricardo Durazzo. Paul Fridman for the New York Times 15 Transformational v. Transactional Leaders Transformational leaders Leading -- changing the organization to fit environment Change agents Transactional leaders Managing -- linking job performance to rewards Ensure employees have necessary resources Apply contingency leadership Paul Fridman for the New York Times 16 Transformational v. Charismatic Leaders Is charismatic leadership essential for transformational leadership? Some experts say yes, but emerging view is that: Charisma is distinct from transformational leadership A personal trait that might help transform, or might just help the leader Charismatic leadership might have opposite effect -- creates dependence, not empowerment Paul Fridman for the New York Times 17 Transformational Leadership Elements Creating Communicating a Strategic the Vision Vision Transformational Leadership Building Modelling Commitment the Vision 18 Evaluating Transformational Leadership Transformational leadership is important Higher employee satisfaction, performance, org citizenship, creativity Transformational leadership limitations Circular research • Transformational leaders identified by their success Universal theory • Need a contingency-oriented theory • Recognize differences across cultures 19 Implicit Leadership Perspective Attributing Leadership Implicit Leadership Perspective Need for Stereotyping Situational Control Leadership 20 Ubuntu Leadership Ubuntu is “that profound African sense that each of us is human through the humanity of other human beings,” explains former South African president Nelson Mandela (shown here). The ubuntu value system provides a framework for leading others in Africa. ©EPA Photo/EPA/ Kim Ludbrook/Corbis 21 Cultural Issues in Leadership Societal cultural values and practices affect leaders: Shape leader’s values/norms Influence decisions and actions Some leadership styles are universal, others differ across cultures “Charismatic visionary” seems to be universal Participative leadership works better in some cultures than ©EPA Photo/EPA/ Kim Ludbrook/Corbis others 22 Gender Issues in Leadership Male and female leaders have similar task- and people-oriented leadership. Participative leadership style is used more often by female leaders. 23 Evaluating Female Leaders Past evidence Women rated less favourably than equivalent male leaders due to stereotyping Recent evidence Women rated more favourably than men, particularly on emerging leadership styles (coaching, teamwork) 24 C H A P T E R: F O U R T E E N Leadership in Organizational Settings 14
"Leadership in Organizational Settings"