Chapter 1

The Leadership Equation

McGraw-Hill/Irwin

Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

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Learning Points
Part One of this course contains answers to these questions: Which variables determine leadership effectiveness? Do you possess the 10 qualities of a leader? How susceptible are you to leadership influence? What is your level of interpersonal trust? In which situations are you likely to lead? What is your natural kind of intelligence?

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Introduction
Researchers have been trying to answer these questions for years: What does it take to be a successful leader? What is the most effective leadership style? Early studies were based on two theories: Trait Theory (focuses on leader qualities) Behavior Theory (focuses on leader actions)

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Leadership Trait Theory

Sir Francis Galton One of the earliest leadership theorists Wrote Hereditary Genius pub. 1869 Believed leadership qualities were genetic This theory assumes physical and psychological characteristics account for effective leadership Basic intelligence Clear and strong values High personal energy

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Leadership Trait Theory

Edwin Gheselli identified six traits for effective leadership: Need for achievement Intelligence Decisiveness Self-confidence Initiative Supervisory ability

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Trait Theory Applied

Paul Von Hindenburg First Chancellor of Germany, post WWI Used the trait theory for selecting and developing military leaders Primary qualities for leadership ability Intelligence (bright vs dull) Vitality (energetic vs lazy)

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Examples of Trait Theory

Bright, lazystaff officer Energetic, dullfrontline soldier Bright, energeticfield commander Lazy, dullleft to find their own level of effectiveness

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Leadership Behavior Theory

In the 1930s, emphasis on behaviorism moved researchers in the direction of leadership behavior Kurt Lewin trained assistants in behaviors indicative of three leadership styles: Autocratic: tight control of group activities, decisions made by the leader Democratic: group participation, majority rule Laissez-faire: little activity of any type by the leader

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Leadership Behavior Theory

In the 1940s, research focused on leader behaviors Assumed that leaders take distinct actions Ralph Stogdill at Ohio State University Helped develop the Leader Behavior Description Questionnaire (LBDQ) Respondents described leaders behavior in two dimensions: Initiating structure Showing consideration

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Leadership Behavior Theory

Findings of a Leader Behavior Description Questionnaire (LBDQ) study: The Democratic style was more beneficial for group performance The leaders behavior impacted the performance of followers

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Initiating Structure
Leaders taking action to define the: Relationship between themselves and staff Role each staff member will assume Measures of initiating structure: Trying out new ideas Encouraging slow workers to work harder Meeting deadlines Meeting at scheduled times Making sure everyone works to capacity

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Showing Consideration
Showing consideration means taking action to develop trust, respect, support, and friendship with subordinates Measures of consideration: Being helpful Treating all people as equals Willing to make changes Standing behind subordinates Doing things to make group membership pleasant

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Leadership Behavior Theory

Rensis Likert at the University of Michigan conducted leadership studies Studied leaders behaviors related to worker motivation and group performance Identified two dimensions of behavior: Job centered (initiating structure) Employee centered (showing consideration)

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Leadership Behavior Theory

Robert Blake and Jane Mouton Developed a managerial grid reflecting Ohio and Michigan dimensions The ideal leader has high concern for both production and people

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Managerial Grid
Major management styles and concerns:

Impoverished: low production, low people

Sweatshop: high production, low people Country Club: high people, low production Status Quo: medium production, medium people Fully Functioning: high production, high people

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Managerial Grid
Two additional styles Paternalistic: high concern for production, use of rewards for compliance and loyalty Opportunistic: promotes his/her own advancement

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Behavior Theory Applied

Margot Morrell documented Ernest Shackletons endurance expedition and the lessons he learned: Leading by example Communicating a vision Keeping morale up Maintaining a positive attitude Successful leaders execute these points

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Leadership Contingency Theory

Both trait and behavioral theories tried to identify the one best leader or style for all situations By the late 1960s, it became apparent that there is no such universal answer Leadership effectiveness depends on a combination of the: Leader Followers Situational factors

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Leadership Contingency Theory

In the past 50 years, more than 65 leadership classification systems have been developed Most agree that leadership effectiveness depends on the leader, the followers, and situation variables Leaders in different situations need different interests, values, and skills A leader in a bank differs from one on a farm Experienced vs new followers have different needs Situational factors include the job performed, the workplace culture, and task urgency

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Leadership Contingency Theory

Leadership results when the ideas and deeds of the leader match the needs and expectations of the follower in a particular situation Examples: Gen. George Patton Nelson Mandela Adolf Hitler

For leadership to take place, the leader, followers, and situation must match

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Transformational Leadership
Charismatic leaders Inspire others and bring forth loyalty

Max Webers definition of charisma: A quality that sets an individual apart from ordinary people To be treated as if endowed with exceptional powers or qualities
Charisma is a gift or power of leadership

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Theory of Charismatic Leadership

This theory was published by R.J. House in 1976 Charismatic leaders exhibit a combination of personal characteristics and behavior: Dominant Ambitious Self-confident Sense of purpose

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Behaviors of Charismatic Leaders

Charismatic leaders Are role models Demonstrate ability that elicits respect Have ideological goals with moral overtones Communicate high expectations and show confidence in meeting them Ignite the motives of followers Types of motives Affiliation, power, and achievement

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Transformational Leadership
Charismatic leaders emerge in every walk of life Football coach Vince Lombardi generated respect and following of others through charisma He cared He worked hard He knew the right answers He believed He kept the bar high He knew people

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Transformational Leadership
According to James MacGregor Burns, charisma has overlapping meanings: Leaders magical qualities An emotional bond between the leader and the led Dependence on a powerful figure by the masses Assumption that a leader is omniscient and virtuous Popular support for a leader that verges on love

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Transformational Leadership
Transformational leaders raise aspirations and transform individuals through: Optimism Charm Intelligence Other personal qualities

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Transformational Leadership
Transformational leadership was first discussed by J. V. Downton However, identification of these leadership types is credited to James MacGregor Burns: Transformational leadership Transactional leadership

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Transformational Vs Transactional
Transformational leaders Focus on the potential relationship between the leader and the followers Engage the full person of the follower Tap the motives of the followers

Transactional leaders Focus on exchanges between leaders and followers Emphasize exchanging one thing for another