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69 6
LEADERSHIP – I
Unit Structure
6.0 Objectives
6.1 Introduction: Leadership
6.1.1 What is Leadership
6.1.2 Nonsanctioned leadership
6.2 Trait Theories
6.3 Behavioural Theories
6.3.1 Initiating structure
6.3.2 Consideration
6.4 Contingency Theories
6.4.1 The Fiedler Model
6.4.2 Situational Theory
6.4.3 Path - Goal theory
6.4.4 Leader - Participation Model
6.5 Summary
6.6 Questions
6.7 References
6.0 OBJECTIVES
After studying this unit you should be able to:
Understand differentLeadership s tyles
Know the nature of Leadership
Study the relationship between Leaders and organization.
Study leadership and related topics
To know how Leadership style can influence work environment
Understand the different theories retaled to leadership
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70 6.1 INTR ODUCTION: LEADERSHIP
As the Google example shows, leadership styles differ
considerably. So which styles, and which people, are most
effective? These are some of the questions we will tackle in this
chapter. In this chapter, we look at what makes an effect ive leader
and what differentiates leaders from nonleaders. First, we present
trait theories, which dominated the study of leadership until the late
1940s. Then we discuss behavioral theories, popular until the late
1960s. Finally, we introduce contingency and interactive theories.
Most of the research discussed in this chapter was conducted in
English -speaking countries. We know very little about how culture
might influence the validity of the theories, particularly in Eastern
cultures. However, analysis o f the Global Leadership and
Organizational Behavior Effectiveness (GLOBE) research project
has produced some useful preliminary insights that we discuss
throughout. But first, let’s clarify what we mean by leadership.
6.1.1 What is leadership?
We define le adership as the ability to influence a group of people
toward the accomplishment of a vision or set of goals. The source
of this influence may be formal, such as that provided by
managerial rank in an organization. But not all leaders are
managers, nor, fo r that matter, are all managers leaders. Just
because an organization provides its managers with certain formal
rights doesnot assure that they will lead effectively.
6.1.2 Nonsanctioned leadership :
Nonsanctioned leadershipis the ability to influence oth ers that
arises outside the formal structure of the organization_is often as
important or more important than formal influence. In other words,
leaders can emerge from within a group as well as by formal
appointment. Organizations need strong leadership an d strong
management for optimal effectiveness. We need leaders today to
challenge the status quo, to have a mission to accomplish, create
visions of the future,and inspire organizational members to want to
achieve the visions. We also need managers to form ulate detailed
plans, create efficient organizational structures, and oversee day -
to-day operations.
6.2 TRAIT THEORIES
Trait theories are the theories that consider personal qualities and
characteristics that differentiate leaders from nonleaders.
Throughout history, we have seen strong leaders —Buddha,
Napoleon, Mao, Churchill, Roosevelt, Reagan —have been
described in terms of their traits. Trait theories of leadership thus
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71 recognize leader s like South Africa’s Nelson Mandela, Virgin Group
CEO Richard Branson, Apple co -founder Steve Jobs, and
American Express chairman Ken Chenault as charismatic,
passionate, enthusiastic, and courageous. The search for
personality, social, physical, or intel lectual attributes that
differentiate leaders from nonleaders goes back to the earliest
stages of leadership research. Early research efforts to isolate
leadership traits resulted in a number of dead ends. A review in the
late 1960s of 20 different studies identified nearly 80 leadership
traits, but only 5 were common to 4 or more of the investigations.
By the 1990s, after numerous studies and analyses, about the best
we could say was that most leaders “are not like other people,” but
the particular traits that characterized them varied a great deal from
review to review.A breakthrough, of sorts, came when researchers
began organizing traits around the Big Five personality framework.
Most of the dozens of traits in various leadership reviews fit under
one of the Big Five (ambition and energy are part of extraversion,
for instance), giving strong support to traits as predictors of
leadership.
A complete review of the leadership literature, when organized
around the Big Five, has found extraversion to be the mo st
significant trait of effective leaders, but it is more strongly related to
the way leaders emerge than to their effectiveness. Sociable and
dominant people are more likely to assert themselves in group
situations, but leaders need to make sure they’re n ot too
assertive —one study found leaders who scored very high on
assertiveness were less effective than those who were moderately
high.Unlike agreeableness and emotional stability,
conscientiousness and openness to experience also showed strong
relationshi ps to leadership, though not quite as strong as
extraversion. Overall, the trait approach does have something to
offer. Leaders who like being around people and in social
surroundings and are able to assert themselves (extraverted), who
are disciplined and able to keep commitments they make
(conscientious), and who are creative and flexible (open) do have
an apparent advantage when it comes to leadership, suggesting
good leaders do have key traits in common. One reason is that
conscientiousness and extraver sion are positively related to
leaders’ self -efficacy, which explained most of the variance in
subordinates’ ratings of leader performance. People are more likely
to follow someone who is confident and one who is going in the
right direction. Another trai t that may indicate effective leadershipis
emotional intelligence (EI).
Emotional intelligence (EI) is the ability to perceive, interpret,
demonstrate, control, evaluate, and use emotions to communicate
with and relate to others effectively and constructiv ely. Advocates
of Emotional Intelligence argue that without it, a person can have
outstanding training, a highly analytical mind, a compelling vision,
and an endless supply of terrific ideas but still not make a great munotes.in
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72 leader. Thus it is very important to b e high on emotional intelligence
inorder to be an effecvtive leader. This may be especially true as
individuals move up in an organization. Why is Emotional
Intelligence so critical to effective leadership? A core component of
Emotional Intelligence is emp athy. Empathetic leaders can sense
others’ needs, listen to what followers say (and don’t say), and read
the reactions of others. They understand other people from their
point of view. They can keep them selves in other persons shoe
and understand them. A leader who effectively displays and
manages emotions will find it easier to influence the feelings of
followers, by both expressing genuine sympathy and enthusiasm
for good performance and by using irritation or annoyance for those
who fail to perform. Th e link between Emotional intelligence and
leadership effectiveness may be worth investigating in greater
detail.Some recent research has demonstrated that people high in
Emotional Intelligence are more likely to emerge as leaders, even
after taking cogniti ve ability and personality into account, which
helps to answer some of the most significant criticisms of this
research. Based on the latest findings, we offer two conclusions.
First, contrary to what we believed 20 years ago and thanks to the
Big Five, we can say that traits can predict leadership. Second,
traits do a better job predicting the emergence of leaders and the
appearance of leadership than actually distinguishing between
effective and ineffective leaders. The fact that an individual exhibits
the traits and that others consider him or her a leader does not
necessarily mean the leader is successful at getting the group to
achieve its goals.
Example of personality trait and its effect on job performance :
The personal qualities and traits of Indra Nooyi make her a great
leader. Nooyi is CEO and board chairman of PepsiCo, the second
largest food and beverage firm in the world. She is described as
funloving, sociable, agreeable, conscientious, emotionally stable,
and open to experiences. Nooyi’s pers onality traits have
contributed to her job performance and career success. She joined
PepsiCo in 1994 as head of corporate strategy and was promoted
to president and chief financial officer before moving into the firm’s
top management position. Nooyi has b een named one of the most
powerful women in business and one of the most powerful women
in the world.
6.4 BEHAVIOURAL THEORIES
Behavioural theories are theories proposing that specific behaviors
differentiate leaders from nonleaders.
The behavioural theory of leadership lays emphasis on this fact that
the leadership is the outcome of effective role of behaviour. It relies
mainly on the acts of an individual rather than his traits. Under this
approach leadership is described as what leaders do instead of
what they are. This theory states that a leader to be effective munotes.in
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73 should perform his function in such a way that will enable the group
to attain its goals.
The failures of early trait studies led researchers in the late 1940s
through the 1960s to wonder whether there was something unique
in the way effective leaders behave. Trait research provides a basis
for selecting the right people for leadership. In contrast, behavioral
theories of leadership implied we could train people to be leaders.
The most comprehensi ve theories resulted from the Ohio State
Studies in the late 1940s,which sought to identify independent
dimensions of leader behavior. Beginning with more than a
thousand dimensions, the studies narrowed the list to two that
substantially accounted for mos t of the leadership behavior
described by employees: initiating structure and consideration.
6.3.1 Initiating structure :
Initiating structure is the extent to which a leader is likely to define
and structure his or her role and those of employees in the s earch
for goal attainment. Everything is in order and organized for the
well-being of the company. It includes behavior that attempts to
organize work, work relationships, and goals. A leader high in
initiating structure is someone who “assigns group membe rs to
particular tasks,” “expects workers to maintain definite standards of
performance,” and “emphasizes the meeting of deadlines.” So,
organizational goals are set and all the tasks are explained well to
the employees. The work is divided according to th e skills required
for the task. Employess have to complete the given tasks on time
and before the dead line. Monitoring and evaluation of the work is
done by the group members and the leader.
6.3.2 Consideration :
Consideration is the extent to which a p erson’s job relationships are
characterized by mutual trust, respect for employees’ ideas, and
regard for their feelings. A leader high in consideration helps
employees with personal problems, is friendly and approachable,
treats all employees as equals, a nd expresses appreciation and
support. Such leader will also take his emplyees opinion. In a
recent survey, when asked to indicate what most motivated them at
work, 66 percent of employees mentioned appreciation. Leadership
studies at the University of Mic higan’s Survey Research Center had
similar objectives: to locate behavioral characteristics of leaders
that appeared related to performance effectiveness. The Michigan
group also came up with two behavioral dimensions: the employee -
oriented leader emphasiz ed interpersonal relationships by taking a
personal interest in the needs of employees and accepting
individual differences among them, and the production oriented
leader emphasized the technical or task aspects of the job,
focusing on accomplishing the gr oup’s tasks. These dimensions are
closely related to the Ohio State dimensions. Employee -oriented
leadership is similar to consideration, and production -oriented munotes.in
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74 leadership is similar to initiating structure. In fact, most leadership
researchers use the te rms synonymously. At one time, the results
of testing behavioral theories were thought to be disappointing.
However, a more recent review of 160 studies found the followers
of leaders high in consideration were more satisfied with their jobs,
were more mot ivated, and had more respect for their leader.
Initiating structure was more strongly related to higher levels of
group and organization productivity and more positive performance
evaluations. Some research from the GLOBE study suggests there
are internati onal differences in preference for initiating structure and
consideration.Based on the values of Brazilian employees, a U.S.
manager leading a team in Brazil would need to be team oriented,
participative, and humane. Leaders high in consideration would
succeed best in this culture. As one Brazilian manager said in the
GLOBE study, “We do not prefer leaders who take self -governing
decisions and act alone without engaging the group. That’s part of
who we are.” Compared to U.S. employees, the French have a
more bureaucratic view of leaders and are less likely to expect
them to be humane and considerate. A leader high in initiating
structure (relatively task -oriented) will do best and can make
decisions in a relatively autocratic manner. A manager who scores
high on consideration (people oriented) may find that style
backfiring in France. According to the GLOBE study, Chinese
culture emphasizes being polite, considerate, and unselfish, but it
also has a high performance orientation. Thus, consideration and
initiating structure may both be important.
Leaders who have certain traits and who display consideration and
structuring behaviors do appear to be more effective. Perhaps
you’re wondering whether conscientious leaders (trait) are more
likely to be structuring ( behavior) and extraverted leaders (trait) to
be considerate (behavior). Unfortunately, we can’t be sure there is
a connection. Future research is needed to integrate these
approaches. Some leaders may have the right traits or display the
right behaviors an d still fail. As important as traits and behaviors
are in identifying effective or ineffective leaders, they do not
guarantee success. The context matters, too.
6.4 CONTINGENCY THEORIES
Some tough -minded leaders seem to gain a lot of admirers when
they tak e over struggling companies and help lead them out of the
stagnations. Home Depot and Chrysler didn’t hire former CEO Bob
Nardelli for his winning personality. However, such leaders also
seem to be quickly dismissed when the situation stabilizes. The rise
and fall of leaders like Bob Nardelli illustrate that predicting
leadership success is more complex than isolating a few traits or
behaviors. In their cases, what worked in very bad times and in
very good times didn’t seem to convert into long -term success .
When researchers looked at situational influences, it appeared that munotes.in
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75 under condition a, leadership style x would be appropriate, whereas
style y was more suitable for condition b, and style z for condition c.
But what were conditions a, b, c? We next cons ider three
approaches to isolating situational variables: the Fiedler model,
situational theory, path –goal theory, and the leader -participation
model.
6.4.1 The Fiedler Model:
Fred Fiedler developed the first comprehensive contingency model
for leadership. The Fiedler contingency model proposes that
effective group performance depends on the proper match between
the leader’s style and the degree to which the situation gives the
leader control. It is very important to have a person - environment fit
in order t o function effectively.
Identifying Leadership Style :
Fiedler believes the individual’s basic leadership style is a key
factor in leadership success. He created the least preferred co -
worker (LPC) questionnaire to identify that style by measuring
whether a person is task or relationship oriented. The LPC
questionnaire asks respondents to think of all the co -workers they
have ever had and describe the one they least enjoyed working
with by rating that person on a scale of 1 to 8 for each of 16 sets of
contra sting adjectives (such as pleasant –unpleasant, efficient –
inefficient, open –guarded, supportive –hostile). If you describe the
person you are least able to work with in favorable terms (a high
LPC score), Fiedler would label you relationship oriented. If you see
your least -preferred co -worker in unfavorable terms (a low LPC
score), you are primarily interested in productivity and are task
oriented. About 16 percent of respondents score in the middle
range 18 and thus fall outside the theory’s predictions. The rest of
our discussion relates to the 84 percent who score in either the high
or low range of the LPC questionnaire. Fiedler assumes an
individual’s leadership style is fixed. This means if a situation
requires a relationship -oriented leader and the perso n in the
leadership position is task - oriented, either the situation has to be
modified or the leader has to be replaced to achieve optimal
effectiveness.
Defining the Situation :
After assessing an individual’s basic leadership style through the
LPC quest ionnaire, we match the leader with the situation. Fiedler
has identified three contingency or situational dimensions:
1. Leader –member relations is the degree of confidence, trust,
and respect members have in their leader.
2. Task structure is the degree to whic h the job assignments are
procedurized (that is, structured or unstructured). munotes.in
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76 3. Position power is the degree of influence a leader has over
power variables such as hiring, firing, discipline, promotions, and
salary increases.
The next step is to evaluate t he situation in terms of these three
variables. Fiedler states that the better the leader –member
relations, the more highly structured the job, and the stronger the
position power, the more control the leader has. A very favorable
situation (in which the l eader has a great deal of control) might
include a payroll manager who is well respected and whose
employees have confidence in her (good leader –member relations);
activities that are clear and specific —such as wage computation,
check writing, and report f iling (high task structure); and provision of
considerable freedom to reward and punish employees (strong
position power). An unfavorable situation might be that of the
disliked chairperson of a volunteer United Way fundraising team. In
this job, the leade r has very little control.
Matching Leaders and Situations combining the three contingency
dimensions yields eight possible situations in which leaders can
find themselves ( Exhibit 6 -1 ). The Fiedler model proposes
matching an individual’s LPC score and t hese eight situations to
achieve maximum leadership effectiveness. Fiedler concluded that
task-oriented leaders perform better in situations very favorable to
them and very unfavorable. So, when faced with a category I, II, III,
VII, or VIII situation, tas k-oriented leaders perform better.
Relationship oriented leaders, however, perform better in
moderately favorable situations — categories IV, V, and VI. In
recent years, Fiedler has condensed these eight situations down to
three. He now says task -oriented l eaders perform best in situations
of high and low control, while relationship -oriented leaders perform
best in moderate control situations. How would you apply Fiedler’s
findings? You would match leaders —in terms of their LPC scores —
with the type of situat ion—in terms of leader – member
relationships, task structure, and position power —for which they
were best suited. But remember that Fiedler views an individual’s
leadership style as fixed. Therefore, there are only two ways to
improve leader effectiveness. First, you can change the leader to fit
the situation —as a baseball manager puts a right - or left -handed
pitcher into the game depending on the hitter. If a group situation
rates highly unfavorable but is currently led by a relationship -
oriented manager, the group’s performance could be improved
under a manager who is task -oriented. The second alternative is to
change the situation to fit the leader by restructuring tasks or
increasing or decreasing the leader’s power to control factors such
as salary incr eases, promotions, and disciplinary actions.
Evaluation Studies testing the overall validity of the Fiedler model
find considerable evidence to support substantial parts of it. If we
use only three categories rather than the original eight, ample
evidence supports Fiedler’s conclusions. But the logic underlying
the LPC questionnaire is not well understood, and respondents’ munotes.in
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77 scores are not stable. The contingency variables are also complex
and difficult for practitioners to assess.
Findings from the Fiedler Model :
Exhibit 6.1
(Source - Based on Robbins, S.P. Judge , T.A. & Vohra,, N.(2013)
Organizational Behavior (15th Edition)Pearson Education.)
Other Contingency Theories :
Although LPC theory is the most widely researched contingency
theory, three other s need to be mentioned.
6.4.2 Situational Leadership Theory :
Situational leadership theory (SLT) focuses on the followers. It says
successful leadership depends on selecting the right leadership
style contingent on the followers’ readiness, or the extent to which
they are willing and able to accomplish a specific task. A leader
should choose one of four behaviors depending on follower
readiness. If followers are unable and unwilling to do a task, the
leader needs to give clear and specific directions; if they are unable
and willing, the leader needs to display high task orientation to
compensate for followers’ lack of ability and high relationship
orientation to get them to “buy into” the leader’s desires. If followers
are able and unwilling, the leader ne eds to use a supportive and
participative style; if they are both able and willing, the leader
doesn’t need to do much. Situational Leadership Theory has
intuitive appeal. It acknowledges the importance of followers and
builds on the logic that leaders can compensate for their limited
ability and motivation. Thus its important for the leader to act munotes.in
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78 according to the demands of the organization, situation and the
behhaviour of the employees.
The situation approach does not deny the importance of i ndividual
traits in leadership. But and that leadership will be different in
different situations.It was discovered in a research study conducted
by Bavelas and Barrett that no individual emerges as leader when
all the participants have equal access to the information and that
the individual commanding maximum information will sooner or
later emerge as a leader
6.4.3 Path –Goal Theory :
Developed by Robert House, path –goal theory extracts elements
from the Ohio State leadership research on initiating structure and
consi deration and the expectancy theory of motivation. It says it’s
the leader’s job to provide followers with the information, support, or
other resources necessary to achieve their goals. (The term path –
goal implies effective leaders to clarify the paths to t heir followers
and achieve work goals and make the journey easier by reducing
hurdles.) According to path –goal theory, whether a leader should
be directive or supportive or should demonstrate some other
behavior depends on complex analysis of the situation . It predicts
the following:
● Directive leadership yields greater satisfaction when tasks are
ambiguous or stressful than when they are highly structured and
well laid out.
● Supportive leadership results in high performance and
satisfaction when employe es are performing structured tasks.
● Directive leadership is likely to be perceived as redundant
among employees with high ability or considerable experience.
Testing path –goal theory has not been easy. Testing path –goal
theory has not been easy. A revi ew of the evidence found mixed
support for the proposition that removing obstacles is a component
of effective leadership. Another review found the lack of support
“shocking and disappointing.” Others argue that adequate tests of
the theory have yet to be conducted. Thus, the jury is still out.
Because path –goal theory is so complex to test, that may remain
the case for some time.
In a study of 162 workers in a document -processing organization,
researchers found workers’ conscientiousness was related to
higher levels of performance only when supervisors set goals and
defined roles, responsibilities, and priorities. Other research has
found that goal -focused leadership can lead to higher levels of
emotional exhaustion for subordinates who are low in
consci entiousness and emotional stability.These studies
demonstrate that leaders who set goals enable conscientious
followers to achieve higher performance and may cause stress for
workers who are low in conscientiousness. munotes.in
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79 6.4.4 Leader -Participation Model :
The final contingency theory we cover argues that the way the
leader makes decisions is as important as what she or he decides.
Victor Vroom and Phillip Yetton’s leader -participation model relates
leadership behavior and participation in decision making. Like
path–goal theory, it says leader behavior must adjust to reflect the
task structure. The model is normative —it provides a decision tree
of seven contingencies and five leadership styles for determining
the form and amount of participation in decision makin g. Although
Vroom and Jago have developed a computer program to guide
managers through all the decision branches in the revised model,
it’s not very realistic to expect practicing managers to consider 12
contingency variables, eight problem types, and five leadership
styles to select the decision process for a problem. As one
leadership scholar noted, “Leaders do not exist in a vacuum”;
leadership is a symbiotic relationship between leaders and
followers. But the theories we’ve covered to this point assume
leaders use a fairly homogeneous style with everyone in their work
unit. Think about your experiences in groups. Did leaders often act
very differently toward different people? Our next theory considers
differences in the relationships leaders form with d ifferent followers.
Leader –member exchange (LMX) theory :
Think of a leader you know. Did this leader have favorites who
made up his or her ingroup? If you answered “yes,” you’re
acknowledging the foundation of leader –member exchange theory.
Leader –member e xchange (LMX) theory argues that, because of
time pressures, leaders establish a special relationship with a small
group of their followers. These individuals make up the ingroup —
they are trusted, get a disproportionate amount of the leader’s
attention, a nd are more likely to receive special privileges. Other
followers fall into theoutgroup. The theory proposes that early in the
history of the interaction between a leader and a given follower, the
leader implicitly categorizes the follower as an “in” or an “out” and
that relationship is relatively stable over time. Leaders induce
Leader Member Exchange by rewarding those employees with
whom they want a closer linkage and punishing those with whom
they do not. But for the Leader Member Exchange relationship to
remain intact, the leader and the follower must invest in the
relationship. Just how the leader chooses who falls into each
category is unclear, but there is evidence ingroup members have
demographic, attitude, and personality characteristics similar t o
those of their leader or a higher level of competence than outgroup
members. Leaders and followers of the same gender tend to have
closer (higher LMX) relationships than those of different genders.
Even though the leader does the choosing, the follower’s
characteristics drive the categorizing decision. Research to test
LMX theory has been generally supportive, with substantive munotes.in
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80 evidence that leaders do differentiate among followers; these
disparities are far from random; and followers with ingroup status
will have higher performance ratings, engage in more helping or
“citizenship” behaviors at work, and report greater satisfaction with
their superior. One study conducted in both Portugal and the United
States found that leader –member exchange was associated
especially strongly with followers’ commitment to the organization
when the leaders were seen as embodying the values and identity
of the organization. These positive findings for ingroup members
shouldn’t be surprising, given our knowledge of self -fulfilling
prophecy. Leaders invest their resources with those they expect to
perform best. And believing ingroup members are the most
competent, leaders treat them as such and unwittingly fulfill their
prophecy. Conversely, a study in Turkey demonstrated that w hen
leaders differentiated strongly among their followers in terms of
their relationships (some followers had very positive leader –
member exchange, others very poor), employees responded with
more negative work attitudes and higher levels of withdrawal
behavior.Leader –follower relationships may be stronger when
followers have a more active role in shaping their own job
performance. Research on 287 software developers and 164
supervisors showed leader – member relationships have a stronger
impact on employee performance and attitudes when employees
have higher levels of autonomy and a more internal locus of
control.
Leader – Member exchange Theory :
Exhibit 6.2
(Source - Based on Robbins, S.P. Judge , T.A. & Vohra,, N.(2013)
Organizational Behavior (15th Edit ion)Pearson Education.)
Cross - Cultural Leadership Style :
While a great deal has been said about international differences in
leadership styles and their effectiveness, another issue probably
matters more for most organizations: How can we develop leaders
who are effective across cultural boundaries? Is it possible to
create a truly global leadership style that will extend across munotes.in
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81 cultures? Some recent forays into the field of cross -cultural
leadership highlight possibilities for how global organizations mi ght
proceed. Some of the leadership styles we have described in this
chapter do seem to generalize across cultures. For example,
research suggests charismatic leadership is effective in a variety of
national contexts. In many cultures, terms like visionary ,
symbolizer, and self -sacrificer appear as descriptors of effective
leaders, and positive leader – member exchanges also are
associated with high performance across a variety of cultures.
Culturally intelligent leaders are flexible and adaptable, tailoring
their leadership styles to the specific and changing needs of the
global workforce. Researchers agree that learning to be a global
leader requires gaining active experience in dealing with multiple
cultures simultaneously. These experiences give leaders a chance
to observe how different leadership styles work with different
groups of people and build confidence in working across cultural
boundaries. Leadership development programs can also use 360 -
degree feedback from supervisors, colleagues, and subordina tes to
help leaders recognize when their behavior is not effective with
certain populations of employees. Companies like PepsiCo and
Ford have their most effective global leaders provide seminars to
emerging leaders so they can describe practices that have been
especially effective.
6.5 SUMMARY
Summary of Trait Theories and Behavioral Theories :
Leaders who have certain traits and who display consideration and
structuring behaviors do appear to be more effective. Perhaps
you’re wondering whether conscienti ous leaders (trait) are more
likely to be structuring (behavior) and extraverted leaders (trait) to
be considerate (behavior). Unfortunately, we can’t be sure there is
a connection. Future research is needed to integrate these
approaches. Some leaders may have the right traits or display the
right behaviors and still fail. As important as traits and behaviors
are in identifying effective or ineffective leaders, they do not
guarantee success. The context matters, too.
Leadership plays a central part in under standing group behavior,
because it’s the leader who usually directs us toward our goals.
Knowing what makes a good leader should thus be valuable in
improving group performance.
● The early search for a set of universal leadership traits failed.
However , recent efforts using the Big Five personality framework
show strong and consistent relationships between leadership
and extraversion, conscientiousness, and openness to
experience. munotes.in
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82 ● The behavioral approach’s major contribution was narrowing
leadership into task -oriented (initiating structure) and people -
oriented (consideration) styles.
By considering the situation in which the leader operates,
contingency theories promised to improve on the behavioral
approach, but only LPC theory has fared well in le adership
research.
6.6 QUESTIONS
A) Write long answers:
a) Discuss in detail about the Trait theories.
b) Discuss about the Behavioural Theories.
c) Explain how leadership style afffects the performance of the
organization.
B) Write short notes:
a) What is Leadership
b) Leader - Member Exchange Theory
c) Path- Goal Theory.
d) Explain the Fiedler Model.
6.7 REFERENCES
Robbins, S. P. Judge, T. A. & Vohra, N. (2013). Organizational
Behavior. (15th ed.), Indian subcontinent adaptation, New Delhi:
Pearson Education, Dorling Kinders ley India pvt ltd.
Top 3 Leadership Theories: Trait, Situation and Behaviour
Theories (yourarticlelibrary.com)
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83 7
LEADERSHIP – II
Unit Structure :
7.0 Objectives
7.1 Introduction: Contemporary leadership Theories
7.1.1 Charismatic Leadership
7.1.2 Key Characteristics of a Charismatic Leader
7.1.3 How Charismatic Leaders Influence Followers
7.1.4 Research on C harismatic Leadershi
7.1.5 Limitations of Charismmatic Leadership Theory
7.2 Transformational Leadership
7.2.1 Transactional Leadership
7.2.2 Characteristics of Transactional and Transformational
Leaders
7.2.3 Evaluation of Transformational Leadersh ip
7.3 What Is Authentic Leadership?
7.4 Leading for the Future: Mentoring
7.4.1 Career and Psychological Functions of the Mentoring
Relationship
7.5 Finding and Creating Effective Leaders
7.6 Summary
7.7 Questions
7.8 References
7.0 OBJECTI VES
After studying this unit you should be able to:
Understand the Language structure
Know the nature of Language development
Study the relationship between thinking and language.
Study language and related topics munotes.in
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84 To know how Language influences thinking
Understand the concepts of emotional intelligence
7.1 INTRODUCTION: CONTEMPORARY LEADERSHIP
THEORIES
In this section, we present two contemporary leadership theories —
charismatic leadership and transformational leadership —with a
common theme: they view lea ders as individuals who inspire
followers through their words, ideas, and behaviors.
7.1.1 Charismatic Leadership :
John F. Kennedy, Martin Luther King Jr., Ronald Reagan, Bill
Clinton, Mary Kay Ash (founder charismatic leaders. What do they
have in commo n?
What Is Charismatic Leadership?
Max Weber, a sociologist, defined charisma (from the Greek for
“gift”) more than a century ago as “a certain quality of an individual
personality, by virtue of which he or she is set apart from ordinary
people and treate d as endowed with supernatural, superhuman, or
at least specifically exceptional powers or qualities. These are not
accessible to the ordinary person and are regarded as of divine
origin or as exemplary, and on the basis of them the individual
concerned is treated as a leader.” Weber argued that charismatic
leadership was one of several ideal types of authority. The first
researcher to consider charismatic leadership in terms of OB was
Robert House. According to House’s charismatic leadership theory,
follow ers attribute heroic or extraordinary leadership abilities when
they observe certain behaviors. A number of studies have
attempted to identify the characteristics of charismatic leaders: they
have a vision, they are willing to take personal risks to achiev e that
vision, they are sensitive to follower needs, and they exhibit
extraordinary behaviors.
Charismatic leadership is a relatively new and distinct paradigm.
Since the 1970s, researchers have conducted studies on
charismatic leadership in areas such as management, academia,
the military, and government. Although researchers have used
different approaches to study charismatic leadership, their findings
have been fairly consistent. Through empirical investigation,
researchers have uncovered the key feature s of charismatic
leadership.
Charismatic leadership theory identifies the extraordinary
characteristics that inspire devotion and motivation in followers and
highlights the relationship between charismatic leaders and their
followers. Studies describe cha rismatic leaders as highly influential
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85 agents who communicate their vision to others, set high
expectations, attend to the needs of their followers, and behave in
unconventional ways. Resea rchers assert that charismatic
leadership tends to manifest itself in crisis situations, when the
leader is of high authority, when vague and complicated
assignments are given, and when extrinsic rewards are not offered.
These circumstances provide opportu nities for charismatic leaders
to implement change and to promote their vision.
Charismatic leaders are inherently motivated and committed to
setting and meeting their goals. They are naturally diplomatic and
work in partnership with their followers to ide ntify organizational
issues and undertake challenges and risks. They maintain a
collective identity while providing a sense of direction that helps
followers achieve both organizational and personal goals.
7.1.2 Key Characteristics of a Charismatic Leader :
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 selfsacrifice to achieve the vision.
3. Sensitivity to follower needs. Perceptive of others’ abilities and
responsive to their needs and feelings.
4. Unconventional behavior. Engages in behaviors that are
perceiv ed as novel and counter to norms.
Are Charismatic Leaders Born or Made?
Are charismatic leaders born with their qualities? Or can people
actually learn to be charismatic leaders? Yes, individuals are born
with traits that make them charismatic. In fact, s tudies of identical
twins have found they score similarly on charismatic leadership
measures, even if they were raised in different households and had
never met. Personality is also related to charismatic leadership;
charismatic leaders are likely to be ex traverted, self -confident, and
achievement oriented and open to new experiences. Consider
Presidents Barack Obama and Ronald Reagan: like them or not,
they are often compared because both possess the qualities of
charismatic leaders. Most experts believe i ndividuals can be trained
to exhibit charismatic behaviors. After all, just because we inherit
certain tendencies doesn’t mean we can’t learn to change. One set
of authors proposes a three -step process.
First, develop an aura of charisma by maintaining an optimistic
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86 for generating enthusiasm; and communicating with the whole
body, using nonverbal gestures and not just with words.
Second, include others by creating a bond that inspires t hem to
follow.
Third, bring out the potential in followers by tapping into their
emotions. The leaders shoukd be empathetic towards their
followers.
The approach seems to work, according to researchers who have
asked undergraduate business students to “pl ay” charismatic. The
students were taught to articulate an overarching goal,
communicate high performance expectations, exhibit confidence in
the ability of followers to meet these expectations, and empathize
with the needs of their followers; they learned to project a powerful,
confident, and dynamic presence; and they practiced using a
captivating and engaging voice. They were also trained to evoke
charismatic nonverbal characteristics: they alternated between
pacing and sitting on the edges of their desk s, leaned toward the
subjects, maintained direct eye contact, and had relaxed postures
and animated facial expressions. Their followers had higher task
performance, task adjustment, and adjustment to the leader and
the group than did followers of noncharis matic leaders.
7.1.3 How Charismatic Leaders Influence Followers :
How do charismatic leaders actually influence followers? Evidence
suggests a four -step process. It begins with articulating an
appealing vision, a long -term strategy for attaining a goal by linking
the present with a better future for the organization. Desirable
visions fit the times and circumstances and reflect the uniqueness
of the organization.
Second, a vision is incomplete without an accompanying vision
statement, a formal articulat ion of an organization’s vision or
mission. Charismatic leaders may use vision statements to imprint
on followers an overarching goal and purpose. They build followers’
self-esteem and confidence with high performance expectations
and belief that followers can attain them. Next, through words and
actions the leader conveys a new set of values and sets an
example for followers to imitate. One study of Israeli bank
employees showed charismatic leaders were more effective
because their employees personally ide ntified with them.
Charismatic leaders are also cooperative and exhibit mutual
support.
A study of 115 government employees found they had a stronger
sense of personal belonging at work when they had charismatic
leaders, increasing their willingness to en gage in helping and
compliance -oriented behavior. Finally, the charismatic leader
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87 demonstrate courage and conviction about the vision. Followers
“catch” the emotions their leader is conveying .
Does Effective Charismatic Leadership Depend on the
Situation?
Research shows impressive correlations between charismatic
leadership and high performance and satisfaction among followers.
People working for charismatic leaders are motivated to exert ex tra
effort and, because they like and respect their leader, express
greater satisfaction. Organizations with charismatic CEOs are also
more profitable, and charismatic college professors enjoy higher
course evaluations. However, charisma appears most succe ssful
when the follower’s task has an ideological component or the
environment includes a high degree of stress and uncertainty. Even
in laboratory studies, when people are psychologically aroused,
they are more likely to respond to charismatic leaders. Th is may
explain why, when charismatic leaders surface, it’s likely to be in
politics or religion, or during wartime, or when a business is in its
infancy or facing a life -threatening crisis. Franklin D. Roosevelt
offered a vision to get the United States ou t of the Great
Depression in the 1930s. In 1997, when Apple Computer was
floundering and lacking direction, the board persuaded charismatic
co-founder Steve Jobs to return as interim CEO and return the
company to its innovative roots.
Another situational factor apparently limiting charisma is level in the
organization. Top executives create vision; it’s more difficult to
utilize a person’s charismatic leadership qualities in lower -level
management jobs or to align his or her vision with the larger goals
of the organization. Finally, people are especially receptive to
charismatic leadership when they sense a crisis, when they are
under stress, or when they fear for their lives. Charismatic leaders
are able to reduce stress for their employees, perhaps becaus e
they help make work seem more meaningful and interesting. And
some peoples’ personalities are especially susceptible to
charismatic leadership. Consider self -esteem. An individual who
lacks self -esteem and questions his or her self -worth is more likely
to absorb a leader’s direction rather than establish his or her own
way of leading or thinking.
7.1.4 Research on Charismatic Leadership :
Researchers have documented the positive effects of charismatic
leadership. For example, they have found that followers of
charismatic leaders not only support and trust their leader but also
strive to accomplish their manager’s mission. They often learn from
their leader and emulate his or her behavior. Studies suggest that
followers embrace a charismatic leader and his o r her mission
because of the leader’s self -confidence, exceptional persona,
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88 her subordinates’ potential. Typically, followers experience higher
satisfaction than do counterparts without char ismatic leaders.
However, findings from previous studies show that charismatic
leaders can also create divisions within the groups they lead,
display an authoritative management style, and focus on trivial
matters.
The Dark Side of Charismatic Leadership :
Charismatic business leaders like AIG’s Hank Greenberg, GE’s
Jack Welch, Tyco’s Dennis Kozlowski, Southwest Airlines’ Herb
Kelleher, Disney’s Michael Eisner, and HP’s Carly Fiorina became
celebrities on the order of David Beckham and Madonna. Every
compan y wanted a charismatic CEO, and to attract them boards of
directors gave them extraordinary independence and resources —
the use of private jets and multimillion -dollar penthouses, interest -
free loans to buy beach homes and artwork, security staffs, and
similar benefits befitting royalty. One study showed charismatic
CEOs were able to leverage higher salaries even when their
performance was mediocre. Unfortunately, charismatic leaders who
are larger than life don’t necessarily act in the best interests of the ir
organizations. Many have allowed their personal goals to override
the goals of the organization. The results at companies such as
Enron, Tyco, WorldCom, and HealthSouth were leaders who
recklessly used organizational resources for their personal benefit
and executives who violated laws and ethical boundaries to inflate
stock prices and allow leaders to cash in millions of dollars in stock
options. Research has shown that individuals who are narcissistic
are also higher in some behaviors associated with c harismatic
leadership. It’s not that charismatic leadership isn’t effective;
overall, it is. But a charismatic leader isn’t always the answer.
Success depends, to some extent, on the situation and on the
leader’s vision. Some charismatic leaders —Hitler, fo r example —are
all too successful at convincing their followers to pursue a vision
that can be disastrous.
7.1.5 Limitations of Charismmatic Leadership Theory :
Despite the amount of research that has been conducted on
charismatic leadership theory, the exac t definition of charismatic
leadership remains uncertain. Some researchers assert that
leaders are considered charismatic when followers perceive their
leader as possessing extraordinary characteristics and when
followers develop strong ties with their lea der; however, such
attributes are based on several presumptions: the quantity of
components demonstrated in a leader’s behavior, the significance
of the components, and the amount of influence of the components.
Some of these components include the leader’ s focus on the
organizational environment, future goals, and likeability. Some
researchers affirm that charismatic leadership exists when a leader
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89 characterize the leader as exceptional or charismatic. Alternatively,
others argue that a leader’s traits, followers, and situation
collectively determine whether charismatic qualities are present.
Researchers suggest that charismatic leadership is not essential or
necessary. Some argue that a n organization’s vision is created
through the collaborative efforts of leaders and subordinates, and
some insist that major transformations within organizations occur
as a result of transformational leaders. Still others argue that
charismatic leadership is needed during turbulent or stressful
times —for example, when a company experiences a reduction in its
workforce or when an organizational merger occurs.
Charismatic leadership theory fails to provide a well -defined
explanation of the significance of und erlying influence processes.
Some theorists propose that personal identification is the primary
influence process, whereas others contend that collective
identification and internalization are the dominant influence
processes. They claim that followers bec ome loyal to their leader
and eagerly execute the leader’s tasks and objectives. These
devoted followers work diligently to gain their charismatic leader’s
approval and tend to emulate their leader’s behavior.
On the other hand, others contend that collect ive identification and
internalization are the dominant influence processes. They claim
that if internalization is the dominant influence process and
followers are goal oriented, the attainment of goals will be an
integral part of their self -confidence. Co nsequently, followers will
work assiduously to fulfill their goals and exhibit more loyalty to
their tasks than to the charismatic leader. Followers will likely
refrain from executing the leader’s unrealistic goals and presumably
reject objectives that inf ringe on their principles.
Unfortunately, there is not a shared understanding of the
fundamental behaviors of charismatic leadership. Although the
majority of studies on charismatic leadership address leader
behaviors, there is presently no agreement among theorists
regarding the essential behaviors of charismatic leadership, nor is
there a clear understanding of the relationship between leader
behavior and the rationale behind that behavior. Most of the
behaviors seem to have been identified by their assoc iation with
socialized leadership effectiveness rather than their link to qualities
of charisma.
Additionally, there seems to be a greater focus on socially accepted
behaviors than on manipulative behaviors. Some charismatic
leaders engage in manipulative behaviors by inflating situations so
as to depict a crisis, reprimanding others for their mishaps, and
overstating their accomplishments. These manipulative behaviors
often create dependent followers and a propensity for leaders to be
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90 7.2 TRANSFORMATIONAL LEADERSHIP
Transformational leadership is a form of influence based on a
developmental relationship that elevates others to higher levels of
moral and professional development, promotes adaptability and
change, and results in performanc e beyond expectations.
Transactional leadership :
Transactional leadership is a form of influence based on an
exchange relationship in which the leader provides direction and
rewards in exchange for a follower’s delivery of agreed -upon
performance. Togethe r, these leadership styles can foster
adaptability and responsiveness to changes in markets, broaden
collective skill sets for generating more creative solutions to
problems, and challenge and develop people more fully. Such
processes are necessary for pro ductivity and profitability in
organizations.
A stream of research has focused on differentiating
transformational from transactional leaders. The Ohio State
studies, Fiedler’s model, and path –goal theory describe
transactional leaders, who guide their fo llowers toward established
goals by clarifying role and task requirements.
Transformational leaders inspire followers to transcend their self -
interests for the good of the organization and can have an
extraordinary effect on their followers. Andrea Jung a t Avon,
Richard Branson of the Virgin Group, and Jim McNerney of Boeing
are all transformational leaders. They pay attention to the concerns
and needs of individual followers; they change followers’
awareness of issues by helping them look at old problems in new
ways; and they excite and inspire followers to put out extra effort to
achieve group goals.
Transactional and transformational leadership complement each
other; they aren’t opposing approaches to getting things done.
Transformational leadership bui lds on transactional leadership and
produces levels of follower effort and performance beyond what
transactional leadership alone can do. But the reverse isn’t true. So
if you are a good transactional leader but do not have
transformational qualities, you’ ll likely only be a mediocre leader.
The best leaders are transactional and transformational.
7.2.2 Characteristics of Transactional and Transformational
Leaders :
Transactional Leader :
Contingent Reward: Contracts exchange of rewards for effort,
promises rewards for good performance, recognizes
accomplishments. munotes.in
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91 Management by Exception (active ): Watches and searches for
deviations from rules and standards, takes correct action.
Management by Exception (passive ): Intervenes only if
standards are not met.
Laissez -Faire: Abdicates responsibilities, avoids making decisions.
Transformational Leader :
Idealized Influence: Provides vision and sense of mission, instills
pride, gains respect and trust. Inspirational Motivation :
Communicates high expectations, use s symbols to focus efforts,
expresses important purposes in simple ways.
Intellectual Stimulation: Promotes intelligence, rationality, and
careful problem solving.
Individualized Consideration: Gives personal attention, treats
each employee individually, coaches, advises.
Outcomes of Transactional / Transformational Leadership
Transformational and transactional CR leadership can have a
variety of positive outcomes. Such leadership makes followers feel
satisfied with their leader, empowered, and self -motiv ated, and
leads them to do more than what is included in their job
descriptions. As a result, followers often report earning promotions.
Such leadership motivates followers to exert extra effort and be
more creative and effective in their jobs. It also hel ps to reduce
followers’ stress and burnout.
For groups, transformational leadership produces enhanced
collective confidence, morale, and cohesion.
It results in enhanced group productivity, effectiveness, and
creativity, and satisfaction with the leader an d task. It can also build
shared leadership, defined as “leadership by the team,” in which
leadership functions are distributed among members.
Organizational outcomes that result from transformational
leadership include innovation, retention, organizationa l
commitment, business unit goal attainment, unit financial
performance, market share and customer satisfaction, and
occupational safety.
Full Range of Leadership :
Laissez -faire is the most passive and therefore least effective of
leader behaviors. Manag ement by exception —active or passive —is
slightly better, but it’s still considered ineffective. Management -by-
exception leaders tend to be available only when there is a
problem, which is often too late. Contingent reward leadership can munotes.in
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92 be an effective sty le of leadership but will not get employees to go
above and beyond the call of duty.
Only with the four remaining styles —all aspects of transformational
leadership —are leaders able to motivate followers to perform
above expectations and transcend their sel f-interest for the sake of
the organization. Individualized consideration, intellectual
stimulation, inspirational motivation, and idealized influence all
result in extra effort from workers, higher productivity, higher morale
and satisfaction, higher orga nizational effectiveness, lower
turnover, lower absenteeism, and greater organizational
adaptability. Based on this model, leaders are generally most
effective when they regularly use each of the four transformational
behaviors.
How Transformational Leader ship Works :
Transformational leaders are more effective because they are more
creative, but also because they encourage those who follow them
to be creative, too. Companies with transformational leaders have
greater decentralization of responsibility, man agers have more
propensity to take risks, and compensation plans are geared
toward long -term results —all of which facilitate corporate
entrepreneurship. One study of information technology workers in
China found empowering leadership behavior led to feelin gs of
positive personal control among workers, which increased their
creativity at work. Companies with transformational leaders also
show greater agreement among top managers about the
organization’s goals, which yields superior organizational
performance . The Israeli military has seen similar results, showing
that transformational leaders improve performance by building
consensus among group members.
Transformational leaders are able to increase follower self -efficacy,
giving the group a “can do” spirit. Followers are more likely to
pursue ambitious goals, agree on the strategic goals of the
organization, and believe the goals they are pursuing are
personally important. Just as vision helps explain how charismatic
leadership works, it also explains part o f the effect of
transformational leadership. One study found vision was even more
important than a charismatic (effusive, dynamic, lively)
communication style in explaining the success of entrepreneurial
firms. Finally, transformational leadership engender s commitment
on the part of followers and instills greater trust in the leader.
7.2.3 Evaluation of Transformational Leadership :
Transformational leadership has been impressively supported at
diverse job levels and occupations (school principals, teacher s,
marine commanders, ministers, presidents of MBA associations,
military cadets, union shop stewards, sales reps). One study of
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93 transformational leadership produced better -quality products as
judged 1 year later and higher profits 5 years later. Another study
looking at employee creativity and transformational leadership more
directly found employees with transformational leaders had more
confidence in their ability to be creative at work and highe r levels of
creative performance. A review of 117 studies testing
transformational leadership found it was related to higher levels of
individual follower performance, team performance, and
organizational performance.
Transformational leadership isn’t equ ally effective in all situations. It
has a greater impact on the bottom line in smaller, privately held
firms than in more complex organizations. The personal nature of
transformational leadership may be most effective when leaders
can directly interact wi th the workforce and make decisions than
when they report to an external board of directors or deal with a
complex bureaucratic structure. Another study showed
transformational leaders were more effective in improving group
potency in teams higher in power distance and collectivism. Other
recent research using a sample of employees both in China and the
United States found that transformational leadership had a more
positive relationship with perceived procedural justice among
individuals who were lower in power -distance orientation, which in
turn related to a stronger transformational leadership -citizenship
behavior relationship among those higher in power distance.
Transformational leaders also obtain higher levels of trust, which
reduces stress for follo wers. In short, transformational leadership
works through a number of different processes.
7.3 WHAT IS AUTHENTIC LEADERSHIP?
Mike Ullman, JCPenney CEO, argues that leaders have to be
selfless, listen well, and be honest. Campbell Soup’s CEO Douglas
R. Con ant is decidedly understated. When asked to reflect on the
strong performance of Campbell Soup, he says, “We’re hitting our
stride a little bit more (than our peers).” He regularly admits
mistakes and often says, “I can do better.” Ullman and Conant
appear to be good exemplars of authentic leadership. Authentic
leaders know who they are, know what they believe in and value,
and act on those values and beliefs openly and candidly. Their
followers consider them ethical people. The primary quality
produced by authentic leadership, therefore, is trust. Authentic
leaders share information, encourage open communication, and
stick to their ideals. The result: people come to have faith in them.
Because the concept is new, there has been little research on
authentic leadership. However, it’s a promising way to think about
ethics and trust in leadership because it focuses on the moral
aspects of being a leader. Transformational or charismatic leaders
can have a vision and communicate it persuasively, but sometimes
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94 concerned with his or her own needs or pleasures, as were Dennis
Kozlowski (ex -CEO of Tyco), Jeff Skilling (ex -CEO of Enron), and
Raj Rajaratnam (founder of the Galleon Group).
7.4 LEADING F OR THE FUTURE: MENTORING
Leaders often take responsibility for developing future leaders. Let’s
consider what makes mentoring valuable as well as its potential
pitfalls. Mentoring A mentor is a senior employee who sponsors
and supports a less -experienced e mployee, a protégé. Successful
mentors are good teachers. They present ideas clearly, listen well,
and empathize with protégés’ problems. Mentoring relationships
serve both career functions and psychosocial functions. Traditional
informal mentoring relatio nships develop when leaders identify a
less experienced, lower -level employee who appears to have
potential for future development.The person will often be tested
with a particularly challenging assignment. If he or she performs
acceptably, the mentor wil l develop the relationship, informally
showing the person how the organization really works outside its
formal structures and procedures.
Why would a leader want to be a mentor?
Many feel they have something to share with the younger
generation and want t o provide a legacy. Mentoring also provides
unfiltered access to the attitudes of lower -ranking employees, and
person can be an excellent source of early warning signals that
identify potential organizational problems. Are all employees in an
organization equally likely to participate in a mentoring relationship?
Unfortunately, In the United States, upper managers in most
organizations have traditionally been white males, and because
mentors tend to select person similar to themselves in background,
educati on, gender, race, ethnicity, and religion, minorities and
women are less likely to be chosen. “People naturally move to
mentor and can more easily communicate with those with whom
they most closely identify.” Senior male managers may also select
male proté gés to minimize problems such as sexual attraction or
gossip. Many organizations have created formal programs to
ensure mentoring relationships are equally available to minorities
and women. Although begun with the best intentions, these formal
relationshi ps are not as effective as informal ones.
Poor planning and design may often be the reason. Mentor
commitment is critical to a program’s effectiveness; mentors must
see the relationship as beneficial to themselves and the protégé.
The protégé, too, must f eel he or she has input into the relationship;
someone who feels it’s imposed on him or her will just go through
the motions. Formal mentoring programs are also most likely to
succeed if they appropriately match the work style, needs, and
skills of protégé and mentor. You might assume mentoring is
valuable for objective outcomes like compensation and job munotes.in
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95 performance, but research suggests the gains are primarily
psychological.
One review concluded, “Though mentoring may not be properly
labeled an utterly u seless concept to careers, neither can it be
argued to be as important as the main effects of other influences on
career success such as ability and personality.” It may feel nice to
have a mentor, but it doesn’t appear that having a good mentor, or
any me ntor, is critical to your career. Mentors may be effective not
because of the functions they provide, but because of the
resources they can obtain: a mentor connected to a powerful
network can build relationships that will help the protégé advance.
Most ev idence suggests that network ties, whether built through a
mentor or not, are a significant predictor of career success. If a
mentor is not well connected or not a very strong performer, the
best mentoring advice in the world will not be very beneficial.
7.4.1 Career and Psychological Functions of the Mentoring
Relationship :
Career Functions :
Pushing to get the protégé challenging and visible assignments
Coaching the protégé to develop his or her skills and achieve
work objectives
Providing explosure t o influential individuals within the
organisation
Protecting the protégé from possible risks to his or her reputation
Sponsoring the protégé by nominating him or her for potential
advances or promotions
Sponsoring the protégé by nominating him or her for potential
advances or promotions
Acting as a sounding board for ideas the protégé might be
hesitant to share with a direct supervisor.
Psychosocial Functions
Counseling the protégé to bolster his or her self -confidence
Sharing personal experiences with t he protégé
Providing friendship and acceptance
Acting as a role mode
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96 7.5 FINDING AND CREATING EFFECTIVE LEADERS
How can organizations find or create effective leaders? Let’s try to
answer that question.
Selecting Leaders :
The entire process organization s go through to fill management
positions is essentially an exercise in trying to identify effective
leaders. You might begin by reviewing the knowledge, skills, and
abilities needed to do the job effectively. Personality tests can
identify traits associat ed with leadership —extraversion,
conscientiousness, and openness to experience. High self -monitors
are better at reading situations and adjusting their behavior
accordingly. Candidates with high emotional intelligence should
have an advantage, especially i n situations requiring
transformational leadership. Experience is a poor predictor of
leader effectiveness, but situation -specific experience is relevant.
Because nothing lasts forever, the most important event an
organization needs to plan for is a change in leadership. Recently,
Apple’s board of directors has been very concerned with identifying
a successor to Steve Jobs. Other organizations seem to spend no
time on leadership succession and are surprised when their picks
turn out poorly.
Training Leader s:
Organizations spend billions of dollars on leadership training and
development. These efforts take many forms —from $50,000
executive leadership programs offered by universities such as
Harvard to sailing experiences offered by the Outward Bound
program. Business schools, including some elite programs such as
those at Dartmouth, MIT, and Stanford, are placing renewed
emphasis on leadership development. Some companies, too, place
a lot of emphasis on leadership development. Goldman Sachs is
well known for developing leaders; BusinessWeek called it the
“Leadership Factory.” How can managers get maximum effect from
their leadership -training budgets?
First, let’s recognize the obvious. Leadership training of any kind is
likely to be more successful with high self-monitors. Such
individuals have the flexibility to change their behavior.
Second, what can organizations teach that might be related to
higher leader effectiveness?
7.6 SUMMARY
In summary, transformational leadership is more strongly correlated
than transactional leadership with lower turnover rates, higher
productivity, lower employee stress and burnout, and higher
employee satisfaction. Like charisma, it can be learned. One study munotes.in
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97 of Canadian bank managers found branches managed by those
who under went transformational leadership training performed
significantly better than branches whose managers did not receive
training. Other studies show similar results.
Probably not “vision creation” but, likely, implementation skills. We
can train people to d evelop “an understanding about content
themes critical to effective visions.” We can also teach skills such
as trust building and mentoring. And leaders can be taught
situational -analysis skills. They can learn how to evaluate
situations, modify them to be tter fit their style, and assess which
leader behaviors might be most effective in given situations. BHP
Billiton, Best Buy, Nokia, and Adobe have hired coaches to help top
executives one on one to improve their interpersonal skills and act
less autocratic ally. Behavioral training through modeling exercises
can increase an individual’s ability to exhibit charismatic leadership
qualities. Recall the researchers who scripted undergraduate
business students to “play” charismatic. Finally, leaders can be
traine d in transformational leadership skills that have bottom -line
results, whether in the financial performance of Canadian banks or
the effectiveness of soldiers in the Israeli Defense Forces.
Summary and Implications for Manager :
● Research on charismatic and transformational leadership has
made major contributions to our understanding of leadership
effectiveness. Organizations want managers who can exhibit
transformational leadership qualities and who have vision and
the charism a to carry it out.
● Effective managers must develop trusting relationships with
followers because, as organizations have become less stable
and predictable, strong bonds of trust are replacing
bureaucratic rules in defining expectations and relationship s.
● Tests and interviews help identify people with leadership
qualities. Managers should also consider investing in
leadership training such as formal courses, workshops, rotating
job responsibilities, coaching, and mentoring.
7.7 QUESTIONS
A) Write lon g answers:
a) Discuss in characteristics of charismatic leader.
b) Discuss about the characteristics of transactional leader.
c) Explain the characteristics of transformational leader.
d) How is mentoring valuable to leadership? What are the keys to
effective mentorin g?
e) How can organizations select and develop effective leaders? munotes.in
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98 B) Write short notes:
a) How Charismatic Leaders Influence Followers
b) Selectin g Leaders
c) Training Leaders
d) Career and Psychological Functions of the Mentoring
Relationship
7.8 REFERENCES
1. Robbins, S. P. Judge, T. A. & Vohra, N. (2013). Organizational
Behavior. (15th ed.), Indian subcontinent adaptation, New Delhi:
Pearson Education, Dorling Kindersley India pvt ltd.
2. Avolio, B. J. (1999). Full leadership development: Building the
vital forc es in organizations. Thousand Oaks, CA: Sage.
3. Bass, B. M. (1985). Leadership and performance beyond
expectations. New York: Free Press.
4. Burns, J. M. (1978). Leadership. New York: Harper & Row.
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