Principles of Management

Lecture - 8

LEADERSHIP THEORIES

TRAIT THEORY GHISELLI

BASES OF INFLUENCE (POWER) FRENCH & RAVEN

BEHAVIORAL THEORIES OHIO STATE UNIVERSITY

BLAKE & MOUTON

CONTINGENCY THEORIES FIEDLER

HOUSE & MITCHELL

VROOM & YETTON

ROLE THEORIES MINTZBERG

TRAIT APPROACHES TO LEADERSHIP GHISELLI

LEADERS ARE “BORN,” NOT MADE

• PHYSICAL CHARACTERISTICS APPEARANCE, HEIGHT, AGE

• PERSONALITY EXTROVERSION, PERSISTENCE, SELF-ASSURANCE, DECISIVENESS

• INTELLIGENCE KNOWLEDGE, ABILITY, JUDGMENT

• SOCIAL CHARACTERISTICS TACT, DIPLOMACY, SOCIABILITY, FLUENCY

THE BIG FIVE PERSONALITY TRAITS

*** EXTROVERSION (AMBITION, ENERGY)

** CONSCIENTIOUSNESS

** OPENNESS TO EXPERIENCE

* EMOTIONAL STABILITY (SELF-CONFIDENCE)

AGREEABLENESS

Trait Theories

Leadership Traits:

• Ambition and energy

• The desire to lead

• Honest and integrity

• Self-confidence

• Intelligence

• High self-monitoring

• Job-relevant knowledge

Traits Theories of Leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.

Trait Theories

Limitations:

• No universal traits found that predict leadership in all situations.

• Traits predict behavior better in “weak” than “strong” situations.

• Unclear evidence of the cause and effect of relationship of leadership and traits.

• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Behavioral Theories

• Trait theory:

Leaders are born, not made.

• Behavioral theory:

Leadership traits can be taught.

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.

Ohio State Studies

Initiating Structure

The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates 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.

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.

The Managerial Grid

(Blake and Mouton)

THE MANAGERIAL GRID BLAKE & MOUTON (64)

9 -------------------------------------------------------------------------- COUNTRY-CLUB TEAM

(1,9) (9,9)

CONCERN FOR MIDDLE OF ROAD

PEOPLE (5,5)

IMPOVERISHED TASK

1 (1,1) (9,1)

---------------------------------------------------------------------------

1 9

CONCERN FOR PRODUCTION

Scandinavian Studies Development-Oriented Leader

One who values experimentation, seeking new ideas, and generating and implementing change.

Researchers in Finland and Sweden question whether there are only two dimensions (production-orientation and employee-orientation) that capture the essence of leadership behavior. Their premise is that in a changing world, effective leaders would exhibit development-oriented behavior.

Contingency Theories Fiedler’s Contingency Model

The theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Least Preferred Co-Worker (LPC) Questionnaire

An instrument that purports to measure whether a person is task- or relationship-oriented.

Fiedler’s Model: Defining the Situation Leader-Member Relations

The degree of confidence, trust, and respect subordinates have in their leader.

Position Power

Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

Task Structure

The degree to which the job assignments are procedurized.

Findings from Fiedler Model

Cognitive Resource Theory

Research Support:

• Less intelligent individuals perform better in leadership roles under

high stress than do more intelligent individuals.

• Less experienced people perform better in leadership roles under

low stress than do more experienced people.

Cognitive Resource Theory

A theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on the leader.

Hersey and Blanchard’s Situational Leadership Theory

Situational Leadership Theory (SLT)

A contingency theory that focuses on followers’ readiness.

Leader: decreasing need for support and supervision

Follower readiness: ability and willingness

Unable and Unwilling

Unable but Willing

Able and Willing

Directive High Task and Relationship Orientations

Supportive Participative

Able and Unwilling

Monitoring

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

Leader–Member Exchange Theory Leader-Member Exchange (LMX) Theory

Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

Path-Goal Theory Path-Goal Theory

The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

The Path-Goal Theory

Leader-Participation Model Leader-Participation Model (Vroom and Yetton)

A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.

Factors Affecting Style

• Leadership style may be dependent on various factors: – Risk - decision making and change initiatives

based on degree of risk involved

– Type of business – creative business or supply driven?

– How important change is – change for change’s sake?

– Organisational culture – may be long embedded and difficult to change

– Nature of the task – needing cooperation? Direction? Structure?

4 Leadership styles

– S1: Telling

– S2: Selling

– S3: Participating

– S4: Delegating

4 Levels of Maturity

– M1: Low, Immature

– M2: Low to Moderate

– M3: Moderate to High

– M4: High, Mature

4 Levels of Maturity of Followers

High Low Moderate

M1 M2 M3 M4 Telling Selling Participating Delegating

4 Development Levels – D1: Low competence, High commitment

– D2: Some competence, Low commitment

– D3: High competence, Variable commitment

– D4: High competence, High commitment

Development Levels of Followers

High Low Moderate

D1 D2 D3 D4 S1: Tell S2:Sell S3: Participate S4: Delegate

Participating Q3 S3: High Relationship

Low Task

D3: Able but unwilling

or insecure

Selling Q2 S2: High Relationship

High Task

D2: Unable but willing

or confident

Delegating Q4 S4: Low Relationship

Low Task

D4: Able/competent &

willing/confident

Telling Q1 S1: Low Relationship

High Task

D1: Unable & unwilling

or insecure

Directive Behavior

Su

pp

ort

ive

Be

ha

vio

r

Mature Immature

Summary of Leadership Theories Theory Leadership Based On…

Trait Theory Leaders born with leadership traits

Behavioral Theory Initial structure and consideration

- Role Theory Shaped by culture, training, modeling

- Managerial Grid Concern for production and concern for people

Participative Leadership More people involved = better collaboration

- Lewin’s Style Autocratic, democratic, laissez-faire

- Likert’s Style Task oriented, relationship oriented, participative style

Contingency Theories No one best leadership style

- Fiedler’s LPC Theory Task focus v. relationship focus

- Cognitive Resource Theory Intelligence and experience make a difference

- House’s Path Goal Theory Help followers make their goals compatible with

organizational goals

Situational Leadership Similar to contingency theory

- Hersey and Blanchard Based on relationship between leader and follower

and task behavior

- Vroom & Yetton Decision quality and decision acceptance

Motivation, Satisfaction, and Performance

Introduction (Cont.)

Motivation is the

psychological process

that leads to

Choice of behavior

that results in Some level

of job performance

The Motivation-Behavior-Job Performance Sequence

Motivation

• Motivation is anything that provides direction, intensity, and persistence to behavior.

Needs Theories

Maslow Herzberg

Hygiene

Motivators

Factors

Social

Safety

Physiological

Self-Actualisation

Esteem

Theories of Motivation

Needs theories

• Maslow’s hierarchy of needs

• Herzberg’s two factor theory

Process theories

• Expectancy Theory

• Goal Setting Theory

Chapter 6

Expectancy Theory (Vroom)

3. Rewards-Personal goals relationship = Valence

1. Effort-Performance relationship = Expectancy

2. Performance-Rewards relationship = Instrumentality

Individual

Effort

Individual

Performance

Personal

Goals

Organisational

Rewards

1 2

3

How Expectancy Theory Works

Expectancy

Effort - Performance Link

E=0

No matter how much effort

you put in, probably not possible

to memorise the text in 24 hours

Instrumentality

Performance - Rewards Link

I=0

Your tutor does not look

like someone who has £1 million

Valence

Rewards - Personal Goals Link

V=1

There are a lot of wonderful things

you could do with £1 million

Your tutor offers you £1 million if you memorise the textbook by tomorrow morning.

Conclusion: Though you value the reward, you will not be motivated to do this task.

Goal Setting

Goals Specific Difficult

Accepted

Effects on Person Directs attention

Energises Encourages persistency

New strategies developed

Feedback

Performance

Self-Motivation

• Self-fulfilment and satisfaction

• Difficult goals lead to higher performance

• Motivation to act depends on the attractiveness of the outcome

Motivation

Direction

Persistence Intensity

Defining Motivation

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Performance

• Performance concerns those behaviors directed toward the organization’s mission or goals, or the products and services resulting from those behaviors.

Job satisfaction

• Job satisfaction deals with one’s attitudes or feelings about the job itself, pay, promotion, or educational opportunities, supervision, co-workers, workload, and so on.

Three Major Needs Theories

• Maslow’s Hierarchy of Needs

• ERG Theory

• Herzberg’s Two-Factor Theory

Hierarchy Of Needs

MASLOW’S

Safety Needs

Belongingness & Love

Needs

Physiological Needs

Esteem Needs

Self-

Actualization

The hierarchy has five levels:

• Physiological Needs: oxygen, water, protein, salt, sugar, calcium and other minerals and vitamins, shelter and sleep etc.

• Safety Needs: security, stability, protection from physical and emotional harm

• Belongingness & Love Needs: affection, belonging, acceptance, friendship, community

• Esteem Needs: (Internal ones are need for self-respect, confidence, autonomy, and achievement. External ones are need for respect of others, status, fame, glory, recognition and attention.) Maslow feels these are the roots to many, if not most of our psychological problems.

• Self-actualization: (doing that which maximizes one’s potential and fulfills one’s innate aspirations)

Hierarchy of Needs

DEFICIT (D-NEEDS)

• If you don’t have enough of something you have a “deficit” (need) – Maslow's hierarchy seems to follow the life cycle. A baby's needs are

almost entirely physiological. As the baby grows, it needs safety, then love. Toddlers are eager for social interaction, attention and affection. Teenagers are anxious about social needs, young adults are concerned with esteem and only more mature people transcend the first four levels to spend much time self-actualizing.

– Under stressful conditions, or when survival is threatened, we can “regress” to a lower level need.

BEING NEEDS (SELF-ACTUALIZATION) • Needs that do not involve balance

• Once engaged, they continue to be felt

• Continuous desire to fulfill potentials (“be all you can be”)

• You need to have lower needs taken care of, at least to a considerable extent

• Only a small percentage of the population is truly, self-actualizing (approximately 2%)

• Maslow’s Hierarchy of Needs

E.R.G. Theory

• A variation of Maslow's hierarchy of needs • Three groups of needs

– Existence needs: physical and material wants

– Relatedness needs: desires for interpersonal relationships

– Growth needs: desires to be creative and productive; to use one’s skills

E.R.G. Theory (Cont.)

Physiological

Safety

Belongingness and love

Esteem

Self- actualization

Relationship of Maslow’s hierarchy

to E.R.G. Theory.

Maslow hierarchy

E.R.G. Theory

Relatedness needs

Existence needs

Growth needs

E.R.G. Theory (Cont.)

• Both similar to and different from Maslow's need hierarchy

• Satisfied and unsatisfied needs operate in much the same way

• Movement upward is the same

• Movement downward is new

E.R.G. Theory (Cont.)

• Satisfaction-progression: move up the hierarchy as needs are satisfied

• Frustration-regression: move down the hierarchy when a need is frustrated

• Deficiency cycle: more strongly desire existence needs when they are unsatisfied

• Enrichment cycle: more strongly desire growth needs when they are satisfied

• Alderfer’s ERG Theory – Existence Needs

• are desires for physiological and material well-being. Relatedness needs are desires for satis-fying interpersonal relationships.

– Relatedness Needs • are desires for satisfying interpersonal relationships.

– Growth Needs • are desires for continued psychological growth and

development.

ERG Theory

Herzberg’s Two-factor Theory

• Herzberg’s Two-factor Theory

– Hygiene Factor

• is found in the job context, such as working conditions, interpersonal relations, organizational policies, and salary.

– Motivator Factor

• is found in job content, such as a sense of achievement, recognition, responsibility, advancement, or personal growth.

Herzberg’s Motivator-Hygiene Theory

• Early interview research with engineers and accountants – Negative events: mostly involved a person's job

context such as company policy and supervision

– Positive events: described aspects of the job and feelings of achievement

– Salary mentioned about the same number of times in negative and positive reports

Herzberg’s Motivator-Hygiene Theory

(Cont.)

• Dissatisfiers: items predominantly found in descriptions of negative events

– Could lead to high levels of employee dissatisfaction

– Improve the dissatisfiers and reduce dissatisfaction

– Not get higher satisfaction

Herzberg’s Motivator-Hygiene Theory

(Cont.) • Satisfiers: items predominantly found in

descriptions of positive events

– Could lead to high levels of employee satisfaction

– Their absence, or a person's failure to experience them, would not produce dissatisfaction

Herzberg’s Motivator-Hygiene Theory

(Cont.) • Two distinct continua: one for satisfaction and

one for dissatisfaction

• Not a single continuum with dissatisfaction on one end and satisfaction on the other

• Herzberg eventually called the satisfiers motivators; the dissatisfiers hygiene factors

Herzberg’s Motivator-Hygiene Theory

(Cont.) • Motivators

– Achievement

– Recognition

– Work itself

• Hygiene factors

– Company policies and their administration

– Quality of supervision

– Working conditions

Herzberg’s Motivator-Hygiene Theory

(Cont.)

• Dissatisfiers distracted from the motivators

• Once the work context is improved, the manager can try to provide the motivators

• Use a process called job enrichment

• Add more responsibility and autonomy to the job

• Creates opportunity for employee to experience the motivators

Herzberg’s Motivator-Hygiene Theory

(Cont.) • Empirical research

– Mixed results

– Methodological issues

– See the text book for details

Theory X and Theory Y (Douglas McGregor)

Functions of Communication

• Control

• Motivation

• Emotional Expression

• Information

The Communication Process

Receiver

Feedback

Decoding Channel Encoding Source

Communication Fundamentals

Direction:

• Downward

• Upward

• Crosswise

Networks:

• Formal vs. Informal

Communication Networks

Chain Wheel All Channels

Barriers to Effective Communication

• Filtering

• Selective Perception

• Emotions

• Language

Key Communication Skills

• Listening Skills

• Feedback Skills

• Presentation skills

Basic Communication Skills Profile

________________________________________________

Communication Order Learned Extent Used Extent Taught

____________________________________________

Listening First First Fourth

Speaking Second Second Third

Reading Third Third Second

Writing Fourth Fourth First

Stages of the Listening Process

• Hearing

• Focusing on the message

• Comprehending and interpreting

• Analyzing and Evaluating

• Responding

• Remembering

Barriers to Active Listening

• Environmental barriers

• Physiological barriers

• Psychological barriers

Selective Listening

Negative Listening Attitudes

Personal Reactions

Poor Motivation

How to Be an Effective Listener

What You Think about Listening ?

Understand the complexities of listening

Prepare to listen

Adjust to the situation

Focus on ideas or key points

Capitalize on the speed differential

Organize material for learning

Receiver

Decode message

Encode feedback

Form feedback

Sender

Form message

Encode message

Decode feedback

Transmit Message

Transmit Feedback

Receive encoded message

Receive feedback

Noise

Communication Process Model

Communication Barriers

• Perceptions

• Filtering

• Language

– Jargon

– Ambiguity

• Information Overload

The HURIER Model: Components of Effective Listening

Hearing (paying careful

attention to what is being said)

Understanding (comprehending

the messages being sent)

Remembering (being able to

recall the message being sent)

Effective Listening

Responding (replying to the sender, letting

him or her know you are paying

attention)

Evaluating (not immediately passing judgment

on the message being sent)

Interpreting (not reading anything into the message the

sender is communicating)

Episodes of information

overload

Employee’s information processing

capacity

Time

Information Load

Information Overload

Overload: Problem Solved

Gatekeeper Message C

Overload (too many messages reaching a person

at once)

Use gatekeepers to control the number

of incoming messages received

Use queuing to present messages

in order

Problem:

Solutions:

Message C

Message B

Message A

Person

Message C

Message B

Message A

Message A Message B Message C

Person

Person

Oral vs. Written Communication: Preference for Media Depends on the Message

Mea

n P

erce

nta

ge

of

Ma

na

ger

s P

refe

rrin

g M

edia

Extremely

ambiguous

messages

Extremely

clear

messages

10

20

30

40

50

60

70

80

90

Oral Media

Written Media

Oral media are preferred for

sending ambiguous messages.

Written media are preferred for sending

clear messages.

(88.3)

(11.3)

(32.1)

(67.9)

Communicating Through E-mail

Advantages of E-mail

–Messages quickly formed, edited, sent, and stored

–Needs little coordination

–Random information access

–Fewer social status barriers

Problems with E-mail

– Information overload

–Flaming

– Interpreting emotions

–Lacks empathy or social support

Nonverbal Communication

• Actions, gestures, facial expressions, etc.

• Transmits most info in face-to-face meetings

• Influences meaning of verbal and written symbols

• Less rule bound than verbal communication

• Important part of emotional labour

Face-to-face

Telephone

E-mail

Newsletters Oversimplified

Zone

Overloaded Zone

Routine/ Clear

Nonroutine/ Ambiguous

Rich

Lean

Media Richness

Situation

Hierarchy of Media Richness

Communicating in Hierarchies

• Workspace design

• Employee surveys

• Newsletters and e-zines

• Management by walking around

Grapevine Characteristics

• Transmits information very rapidly in all directions

• Relatively accurate, but deletes details and exaggerates key points

• More active in homogeneous groups who easy communication access

• Most active when employees are anxious

• Usually follows a cluster chain pattern

Personal Communication Style

The Senator

(sometimes Noble and

sometimes Reflective)

The Candidate

(blend between

Socratic and Reflective)

The Magistrate

(blend between

Noble and Socratic)

The Reflective (someone who would

rather say nothing than to hurt someone

else’s feelings)

The Socratic (someone who likes to

argue his or her points fully)

The Nobel

(someone who says

what’s on his or

her mind)

Internal vs. External Communications: Is There a Difference?

More

Statements

Fewer

Statements

Rel

ati

ve P

rop

ort

ion

of

Sta

tem

ents

Threats were used more

than opportunities when

communicating internally.

Opportunities were used

more than threats when

communicating externally.

Threats Opportunities Focus of Statements

Internal

statements

External

statements

Cross-Cultural Communication

• Verbal differences

– Language

• Nonverbal differences

– Voice intonation

– Interpreting nonverbal meaning

– Importance of verbal versus nonverbal

– Silence and conversational overlaps

Men Women

Gender Communication Differences

Gives advice quickly and directly

Gives advice indirectly and reluctantly

Report talk Rapport talk

Avoids asking for information

Frequently asks for information

Less sensitive to nonverbal cues

More sensitive to nonverbal cues

Gender Issues in Leadership

• Male and female leaders have similar task- and people-oriented leadership.

• Participative leadership is used more often by female leaders.

• Women rated less favourably than equivalent male leaders due to stereotyping.

Getting Your Message Across

• Empathize

• Repeat the message

• Use timing effectively

• Be descriptive

Active Listening Process and Strategies

ACTIVE LISTENING

SENSING •Postpone evaluation • Avoid interruptions • Maintain interest

EVALUATING

• Empathize • Organize information

RESPONDING

• Show interest • Clarify the message

Audience Characteristics • Self-esteem • Inoculated

Communicator Characteristics • Expert • Credibility • Attractive

Message Content • Present all sides • Few arguments • Emotional appeals • Inoculation effect

Communication Medium

Persuasive Communication