Chapter 14- Power, Influence, & Leadership

Leadership
Is the ability to influence employees to voluntarily pursue organizational goals.
Managers and lasers not always the same
Leaders manage and managers lead.
– Management is about coping with complexity
– Leadership is about coping with change
Companies manage complexity in three ways
– Determining what need to be done
– Creating arrangements of people to accomplish an agenda
– Ensuring people do their jobs
Determining what need to be done- 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
Managers achieves its plans by organizing and staffing.
Ensuring people do their jobs- controlling and problem solving
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.
Leadership copes with change in three ways
– Determining what needs to be done
– Creating arrangements of people to accomplish an agenda
– Ensuring people do their jobs
Determining what needs to be done-setting a direction
They develop a vision for the future, along with the strategies for realizing the change.
Creating arrangements of people to accomplish an agenda- aligning people
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
They appeal to “basic but often untapped human needs, values, and emotions.” Keep people moving in the right direction. Leaders inspire others, provide emotional support, and try to get employees to rally around common goal.
*** (IMPORTANT) Leaders also play a role in creating a vision and strategic plan for the organization, which managers are then charged with implementing.
**
The primary task of leadership is to communicate the vision and the values of an organization; second, leaders must win support for the vision and values they articulate; and third, leaders have to reinforce the vision and the values.
Whereas management is a process that lots of people are able to learn, leadership is more visionary.
Authority
The right to perform or command; it comes with the job.
Power
The extent to which a person is able to influence others so they respond to others.
There is “bad power” and “good power”
– Personalized power: power directed at helping oneself.
– Socialized power: power directed at helping others.
Five sources of power leaders may draw on
– Legitimate
– Reward
– Coercive
– Expert
– Referent
1. Legitimate power: Influencing behavior because of one’s formal position
Legitimate power, which all managers have, is power that result from manager;s formal position within the organization. This power is may be exerted both positively or negatively- as praise or as criticism.
2. Reward Power: Influencing behavior by promising or giving rewards
Reward power, with all managers have, is the power that results from managers; authority to reward their subordinates. Rewards can range from praise to pay raises, from recognition to promotion.
3. Coercive power: Influencing behavior by threatening or giving punishment
Coercive behavior, which all managers have, result from manager’s authority to punish their subordinates. Punishment can range from verbal or written reprimands to demotions to terminations. Coercive power has to be used judiciously.
Expert power: Influencing behavior because of one’s expert
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 you or sophisticated, such as having computer or medical knowledge.
Referent power: Influencing behavior because of one;s personal attraction
Referent power is power deriving from one’s personal attraction. 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.
There are nine tactics for trying to influence others
1. Rational persuasion
2. Inspirational appeals
3. Consultation
4. Ingratiating tactics
5. Personal appeals
6. Exchange tactics
7. Coalition tactics
8. Pressure tactics
9. Legitimating Tactics
***
These influence tactics are considered generic because they are applied in all directions: within the organization. The first five influence tactics are considered “soft” tactics because they are considered friendlier than the las four “hard,” or pressure, tactics. The three possible responses to an influence tactics -enthusiastic, commitment, grading compliance, and outright resistance- commitment is most apt to result when the tactics used are consultation, strong rational persuasion, and inspirational appeals.
Rational persuasion
Trying to convince someone by using reason, logic, or facts.
Inspirational appeal
Trying to build enthusiasms or confidence by appealing to others’ emotions, ideals, or values.
3. Consultation
Getting others to participate in a decision or change
4. Ingratiating Tactics
Acting humble or friendly or making someone feel good or feel important before making a request.
5. Personal appeals
Referring to friendship and loyalty when making a request
6. Exchange tactics
Reminding someone of past favors or offering to trade
Coalition tactics
Getting others to support your effort to persuade someone
Persuade Tactics
Using demands, threats, or intimidation to going to gain compliance.
Legitimating Tactics
Basing request on one’s authority or right, organizational rules or policies, or express or implied support form superiors.
Five approaches to leadership
– Trait
– Behavioral
– Contingency
– Full-range
– Four additional
Trait approaches
– Kouzes and Posner’s five traits: honest (the most important), competent, forward-looking, inspiring, intelligent.
– Gender studies: motivating others, fostering communication, producing high-quality work, and so on.
– Leadership lesson from the GLOBE project: visionary and inspirational charismatic leaders who are good team builders are best worldwide
Behavioral approaches
– Michigan model- two leadership styles: job-centered and employee-centered
– Ohio state model- two dimensions: initiating-structure behavior worldwide
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
– Hersey’s situational leadership model- adjusting leadership style to employee readiness
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 simulation.
Four additional perspectives
– Leader-member exchange (LMX) model-leaders have different sorts of relationship with different subordinates.
– Shared leadership- mutual influence process in which people share responsibility for leading
– 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 interaction.
Successful leader according Ralph Stogdill
1. Dominance
2. Intelligence
3. Self-confidence
4. High energy
5. Task-relevant knowledge
Trait Approaches to leadership
Wich attempt to identify distinctive characteristics that accounts for the effectiveness of leader
Positive traits for leaders
– Task competence: Intelligence, knowledge, problem-solving skills
– Interpersonal competence: Ability to communicate and ability to demonstrate caring and empathy
– 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
Organizations may apply trait theory are
– Organizations may incorporate personality and trait assessments into their selection and promotion process
– To enhance leadership traits, organization may send employees to management development programs that include management classes, coaching sessions, trait assessments…
Women excel in (high scores than male on variety of measures)
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; producing quality work, recognizing trends, and generation new ideas. Also used more democratic or participative style than men (men more autocratic and directive style). Women more social leadership and man more social leadership.
Why women are not on the Top
Men: (1) women lack general management experience (2) women have not been in the executive talent pool long enough to get selected. Women: (1) male stereotyping (2) exclusion from important informal networks.
1. Women simply aren’t willing to compete as hard as most men are or are not willing to make the required personal sacrifices.
2. Women have a tendency to be overly modest and to give credit to others rather than taking it for themselves.
3. Women are less likely than their male counterparts to have access to a supportive mentor.
4. Early-career success is pivotal; women MBAs start out at lower levels than men do in their 1st job.
Project GLOBE (Global Leadership and Organizational Behavior Effectiveness)
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 process. This determined that certain leadership attributes 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 receive a poor reception worldwide.
Behavioral leadership approaches
– Patterns of behavioral or leadership styles.
– Attempts to determine the distinctive styles used by effective leaders.
– Leadership style: 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 studies: Michigan/Ohio university
University of Michigan Leadership Model
– Rensis Likert- two forms of leadership styles
– Job Centered behavior- I am concerned more with the needs of the job: Managers paid more attention to the job and work procedures. Their principal concerns were with achieving production efficiency, keeping cost down, and meeting schedules.
– Employee centered behavior- I am concerned more with needs of employees: more attention to employee satisfaction and making work groups cohesive. They hoped to build effective work groups with high performance goals.
Ohio State Leadership Model
– Ralph Srogdill
– Two major dimensions of leader behavior:
– Initiating structure
– Consideration
Initiating Structure- What do I do to get the job done?
Initiating structure is leadership behavior that organized and defines what group members should be doing. The efforts the leader makes to get things organized and get the job done.
– “Likert’s job-ceneterd behavior”
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. Is sensitive to subordinates’ ideas and feeling and established mutual trust.
– Reassembles Likert’s employee-centeres behavior.
Conclusion
Effective leaders:
1. Tend to have supportive or employee- centered relationships with employees
2. Use group rather than individual methods of supervision
3. Set high-performance goals.
Peter Drucker: 9 behaviors that managers can focus on to improve leadership
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 restrains, future revisions, check-in points, and implications for how one should spend time.
4. Take responsibility for decisions
5. Take responsibility for communication actions plans and give people the information they need to get the job done.
Peter Drucker: 9 behaviors that managers can focus on to improve leadership (2)
6. Focus on opportunities rather than in problems. Treat change as an opportunity rather than a threat
7. Run productive meetings.
8. Think and say “we” rather than “I.” Think first of the needs and opportunities of the organization.
9. Listen first, speak last.
Contingency Approach to leadership
Believe that effective leadership behavior depends on the situation at hand. A situation change, and different styles become appropriate.
Three contingency approaches:
1. The contingency approach by Fiedler
2. The path-goal leadership model by House
3. The situational leadership model by Hersey
1. Contingency leadership model
Determines if a leader’s style is (1) task-orientd or (2) relationship-oriented and if that style is effective for the situation at hand.
(1) Two leadership orientations
Task versus relationship
– LPC: Least preferred co-worker. The higher the score, the more the relationship oriented the respondent; the lower the score, the more task-oriented.
Three dimensions of situational control
How much control and influence a leader has in the immediate work environment.
– Leader-member relations: Do my subordinates accept me as a leader (if leader has the support, loyalty, and trust of the group) Good/Poor
– Task structure- Do my subordinated perform unambiguous, easily understood tasks? (the more structured the jobs, the more influence a leader has. High/Low
– Position power- Do I have power to reward and punish? More power equals to more control and influence. Strong/weak
***
For each dimension , the amount of control can be high- the leader’s decisions will produce predictable result 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.
Which style is more effective
– The task-orientes style works best in either high-control to low-control situations.
– The relationship-oriented style works best in situations of moderate control.
If leadership orientation does not match the situation os better try to move leaders into other situations rather than try alter their personalties to fit situations.
2. Path-goal leadership model
– Robert House
– Holds that the effective leader 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.
– rewards to goal accomplishment, reducing barriers, and providing support
House’s Model
(1) Leader behaviors are influenced by two contingency factors of (2) employee characteristics and (3) environmental factors in determining (4) the most effective leadership.
– Two contingency factors (employee characteristics and environmental factors) cause some leadership behavior to be more effective than others.
(1) Leaders behavior
– Path-goal clarifying
– Achievement-oriented
– Work facilitation
– Supportive
– Interaction facilitation
– Group oriented decision making
– Representation and networking
– Value-based
Revised path goal theory/ before directive, supportive, participative, achievement-oriented.
(2) Employee characteristics
– Locus of control
– Task ability
– Need for achievement
– Experience
– Need for path-goal clarity
(3) Environmental factors
– Task structure
– Work group dynamics
( independent versus interdependent tasks)
(4) Leadership Effectiveness
– Employee motivation
– Employee satisfaction
– Employee performance
– Leader acceptance
– Interaction facilitation
– Work-unit performance
Leaders behavior (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 compete task. Clarify performance standards and expectations. Use positive and negative rewards contingent on performance.
Leaders behavior (2) Achievement-oriented
I am confident you can accomplish the following great things.
Set challenging goals. Emphasize excellence. Demonstrate confidence in employee abilities.
Leaders behavior (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.
Leaders behavior (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.
Leaders behavior (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 minority opinion. Facilitate communication, resolve disputes.
Leaders behavior (6) Group-oriented decision making
I want your suggestions in order to help me make decisions
Pose problems rather than solutions to work groups. Encourage members to participate in decision making. Provide necessary information to the group for analysis. Involve knowledge employees in decision making.
Leaders behavior (7) Representations and 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.
Leaders bheavior (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 other’s abilities to meet their goals. Give frequent positive feedback. Demonstrate self-confidence.
For example
Employees with an internal locus of contro are more likely to prefer achievement-oriented leadership or group-oriented decision making. Sme gor high experienceask ability and t employees.
Employees with an external locus of control, view the environment incontrollable, so they prefer supportive or path-goal-clarifying structures. Same inexperienced employees.
House’s revision puts more emphasis on the need for leaders to foster intrinsic motivation through empowerment; and stresses the concept of shared leadership.
Does the revised path-goal theory works?
– Research on transformational leadership is supportive of the revised mode.
– It offers two important implications for managers:
1. Use more than one leadership style
2. Modify leadership style to fit employee (ability, experience, and need for independence) and task/environmental characteristics (task characteristics of autonomy, variety, and significance) and manager contingency factors.
3. The situational leadership theory model: Hersey’s appriach
– Paul Hersey and Keneth Blanchard
– Situational leadership theory, leadership behavior reflects how leader should adjust their leadership style according to the readiness of the followers.
– Managers should be flexible in choosing a leadership behavior style and be sensitive to the readiness level of their employees
Readiness
Defined as the extent to which followers possesses the ability and willingness to complete a task. Employees with hight high readiness (high ability, skills and willingness to work) require different leadership style than those with low readiness (low ability, training, and willingness). Diagram 455.
How the situational leadership model works
1. Leadership styles- relationship behavior (vertical axis) plus task behavior (horizontal axis)
– Relationship behavior: is the extent to which leaders maintain personal relationships with their followers, as in providing support and keeping communication open
– Task behavior: is the extent to which leaders organize and explain the role of their followers, which is achieved by explaining what subordinated are to do and how tasks are to be accomplished.
How the situational leadership model works
2. Four leadership styles:
– telling: high task and low relationship
– selling: High task and high relationship
– participating: High relationship and low task
– delegation: Low relationship and low task
Telling
Represents the guiding and directing of performance. This leadership style works best for followers with a low level of readiness: subordinated are neither willing nor able to take responsibility.
Selling
Is explaining decisions and persuading others to follow a course of action. It offers both direction and support. This style is most suitable for followers who are unable but willing to assume task responsibility.
Participating
Involves encouraging followers to solve problems on their own. Because it shares decision making, this style encourages subordinated in performing tasks. Most appropriate for followers whose readiness is in the moderate to high range.
Delegating
Providing subordinates with little support or direction. The leader’s role is to observe and monitor. This style is best for followers who have a high level of readiness, both able and willing to perform a task.
How the situational leadership model works
3. When a leadership style should be used depends on the readiness of the followers.
Applying situational theories
Step 1: Identify Important outcomes: what goals am I trying to achieve? (in what time)
Step 2: Identify relevant employee leadership behaviors: what management characteristics are best? (for the situation)
Step 3: Identify situational conditions: What particular events are altering the situation? (Considerations)
Step 4: Match leadership to the conditions at hand: how should I manage when there are multiple conditions?
Step 5: Determine how to make the match: Change the manager or change the manager’s behavior.
Full-range leadership
– Bernard Bass and Bruce Avolio
– Suggests that leadership behavior varies a log a full range of leadership styles, from take-no responsibility (bad leadership) -laissez-faire, at one extreme, through transactional leadership, to transformational leadership at the other extreme (last two good leadership)
Transactional Leadership
Focusing on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance. Also encompassed the fundamental managerial activities of setting goals and monitoring progress toward their achievement.
– Best in stable situations
– Try to get people to do ordinary things
Transformational leadership
Transforms employee to pursue organizational goals over self-interests.
– Try to get people to do exceptional things: significantly higher levels of intrinsic motivation, trust, commitment, and loyalty. Transformational leaders are influenced by 2 factors:
1. Individual characteristics: extroverted, agreeable, proactive.
2. Organizational culture: Adaptive, flexible (+rigid and bureaucratic)
****Transformational/transactional
***Best leaders learn to display both transactional and transformational styles of leadership.
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 four behaviors
1. Inspirational Motivation: Let me share a vision that transcends us all
– Charisma: a form of interpersonal attraction that inspires acceptance and support.
– Charismatic leadership: was assumed to be an individual inspirational and motivational characteristic of particular leaders; now is considered part of transformational leadership.
Someone with charisma is presumed to be more able to persuade and influence people than someone without charisma.
1. UP
A transformational leader inspires motivation by offering an agenda, a grand design, an ultimate goal- in short, a vision, a realistic, credible, attractive future. This, attracts commitment, energizes workers, creates meaning in their lives, establishes a standard of excellence, promoted high ideals, and bridges the divide between the organization’s problems and its goals and aspiration.
2. Idealized influence: we are here to do the right thing
Transformational leaders express their integrity by being consistent, single-minded, and persistent in pursuit of their goal. they display high ethical standards and act as models of desirable values. They also are able to make sacrifices for the good of the group.
3. Individualized consideration: you have the opportunity here to grow and 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.
4. Intellectual simulation: Let me describe the great challenge we can conquer together
These leaders are gifted at communicating the organization’s SWOT, so that subordinates develop a new sense of purpose. Employees learn to new problems as personal challenges that they are responsible for overcoming, to questions the status quo, and to seek creative solutions.
Transformational leadership positive results
(1) Measures of organizational effectiveness
(2) Measures of leadership effectives and employee job satisfaction
(3) More employee identification with their leader and with their immediate work groups.
(4) Higher levels of intrinsic motivation, group cohesion, work engagement, and setting goals consistent with those of the leader.
Important implications of transformational leadership for managers
1. It can improve results for both individuals and groups: You can use the four types of transformational behavior such as job satisfaction, organizational commitment, and performance. Also group’s outcomes can be improved.
2. I can be used to train employees at any level: also employees can be trained to be more transactional and transformational.
3. It requires ethical leaders
The ethical things top managers should do to be effective transformational leaders
– Employ a code of ethics
– Choose the right people
– Make performance expectations reflect employee treatment.
– Emphasize value of diversity
– Reward high moral conduct
Four others
Leader Member exchange (LMX)
– George Graen and Fred Dansereau
The leader-member exchange (LMX) model of leadership emphasized that leader have different sorts of relationship with different subordinates
– The LMX quality looks at the quality of relationship between manager-subordinates relationship unique/ The unique relationship can produce two types of leader-member exchange interactions: in-group exchange, out-group exchange
In-group exchange
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 fate. Subordinates may receive special assignments and privileges.
Why? compatibility
+ associated w/ goal commitment, trust between managers and employees, work climate, satisfaction with leadership, and job performance and job satisfaction.
Out-group exchange
In the out-group exchange, leader 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.
Why? Competence
Shared leadership
Simultaneous, ongoing, mutual influence process in which people share responsibility for leading. It is based on the idea that people need to share information and collaborate to get things doe. It is more like to be needed when people work in teams, are involved in complex projects, or are doing knowledge work -work requiring voluntary contributions of intellectual capital by skilled professionals. + Associated with group cohesion, group citizenship, and group effectiveness.
Servant Leadership: Meeting the goals of followers and the organizations, not of oneself
– Robert Greenleak
– Focus on providing increased service to others -meeting the goals of both followers and the organization- rather than to themselves.
– Long-term transformational approach to life and work.
10 Characteristics Servant Leadership
1. Focus on leadership
2. Ability to emphasize with other’s feelings
3. Focus on healing suffering
4. Self-awarness of strength and weaknesses
5. Use of persuasion rather than positional authority to influence others
6. Broad-based conceptual skills
7. Ability to foresee future outcomes
8. Belief they are steward of their employees and resources
9. Commitment to the growth of people
10. Derive to build community within and outside the organization.
E-leadership: Managing for global networks
Can involve one-to-one, one-to-many, within-group and between-group and collective interactions via information technology.
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.