Organizational behavior Leadership

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Organizational behavior Leadership

• Henrietta Finna
• PhD student
• Department of Industrial Management Business
  Economics
• finnah_at_imvt.bme.hu

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Prescribed Text for the Examination

• James H. Donnelly, Jr. James L. Gibson
• John M. Ivancevich
• Fundamentals of Management
• Chapter 11, pp. 377-405.

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Definition of leadership

• The ability to persuade people to work toward
  meeting organizational goals enthusiastically.
• The human factor that binds a group together.
• A process wherein one person exerts influence
  over others.

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Why to obey? Five bases of power

• Managerial influence is greatly affected by the
  amount of power which subordinates believe their
  manager possesses
• Coercive power based on subordinates fear
  that the superior will punish non-compliance.
• Reward power based on subordinates perception
  that compliance with the wishes of a superior
  will lead to rewards
• Legitimate power derived from the supervisors
  position in the organizational hierarchy
• Expert power based on the leaders expertise,
  special skill, or knowledge which peers and
  subordinates perceive as exceeding their own.
• Referent power based on the followers
  identification with the leader.

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Leader Attitudes McGregor X-Y Theory

• Theory X manager Employees
• dislike work and avoid it
• has lack of ambition
• avoid responsibility
• prefer job security the most
• must be coerced and closely supervised to work
  adequately
• Theory Y manager Employees
• want self-direction and self-control in their
  work
• want to be creative and assume responsibility
• are interested in displaying imagination and
  creativity to solve organizational problems

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Theories of Leadership

• Trait Theories
• Personal-Behavioral Theories
• Continuum Theory
• Supportive Theory
• Two-dimensional Theory
• Leadership Grid
• Situational Theories
• Contingency Theory
• Path-Goal Theory
• Vroom-Yetton Theory
• Hersey-Blanchard Theory

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Trait Theories

• Identify the particular characteristics of
  leaders that predict success.
• Desirable characteristics of leaders
• Drive
• Motivation
• Integrity
• Self-confidence
• Intelligence
• Knowledge

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Personal-Behavioral Theories

• Contend that leaders are best classified by
  behavioral styles as opposed to personality
  traits.
• These theories focus on what the leader does when
  performing managerial tasks.
• Theories
• Continuum of Leadership
• Michigan Studies job-centered and
  employee-centered leaders
• Two-dimensional theory (Ohio University)
• Managerial Grid Theory

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Leadership Continuum Theory
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Michigan Studies Job-centered and
Employee-centered Leaders

• Two leader style dimension

• Job centered leader
• structures subordinate jobs,
• supervises closely,
• uses incentives to spur production,
• determines standard rates of production

• Employee-centered leader
• focuses on human aspects of subordinate
  problems and on building effective work groups
• specifies objectives, communicates them to
  subordinates
• provide latitude to accomplish the job

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Two-dimensional Theory(Ohio State University)

• Proposed two leadership behavior dimensions
• Consideration developing a work atmosphere of
  mutual trust, respect for ideas of subordinates,
  and consideration of feelings of subordinates.
• Initiating structure structures leader and
  subordinate roles, plans work activities,
  schedules work, communicates pertinent
  information.
• Among research results
• In a production environment, initiating structure
  behavior was positively related and consideration
  behavior was negatively related to subordinate
  group proficiency
• Overall, high structure and low consideration
  were related to more absenteeism, accidents and
  turnover.

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Blake and Mouton Managerial Grid

• Plots leadership styles on a two-dimensional grid
  which serves as a framework to diagnose a
  leaders style and track the leaders movement to
  the ideal style.
• Grid scales are Concern for People and Concern
  for Production
• It focuses on five core styles
• Impoverished leader (1.1)
• Task leader (9.1)
• Country Club leader (1.9)
• Middle of the road leader (5.5)
• Team leader (9.9)

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Blake and Mouton Managerial Grid
(9,9) Management Team Management
(1,9) Management Country Club Management
9 8 7 6 5 4 3 2 1
(5,5) Management Middle of the road Management
(9,1) Management Task Management
(1,1) Management Impoverished Management
1 2 3 4 5 6 7
8 9
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Comparison of Personal-Behavior Leadership Styles
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Situational Theories of Leadership

• These theories assume that no single leadership
  style is effective in all situations situational
  factors influence the effectiveness of leader
  behavior.
• Theories
• Contingency Theory
• Path-Goal Theory
• Leader-style Theory
• Tridimensional leader effectiveness Theory
  (Hersey and Blanchard)

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Contingency Theory - Fiedler

• Proposes that there is no best way to lead
  leader effectiveness depends upon leader style
  and situational favourableness which is the
  result of three dimensions
• Leader-member relations degree of confidence
  subordinates have in the leader, subordinates
  loyalty, and leaders attractiveness.
• Task structure the degree to which subordinate
  tasks are routine
• Position power power inherent in the leadership
  position.
• Leadership style is measured using the
  Least-Preferred-Co-worker (LPC) Questionnaire.
  High LPCs are assumed to be people-oriented, low
  LPCs are task-oriented.

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Contingency Theory 2.
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Contingency Theory 3.

• If the leader style- leadership situation is a
  poor match, the situation should be engineered to
  fit the leaders style
• Leader-member relations can be improved by
  restructuring the leaders group of subordinates
  to make the group more compatible with the
  leader.
• Task structure can be increased or decreased.
• Leader position power can be increased or
  decreased (via changing the leaders rank,
  providing the leader authority in performance
  evaluation of subordinates)
• Fiedler opposes leadership training because he
  believes it is ineffective.

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Path-Goal Theory Robert House

• Asserts that a leader can increase subordinate
  motivation, satisfaction and performance by using
  four leadership styles
• Directive no subordinate participation i
  decision making
• Supportive leader is friendly toward and
  interested in subordinates
• Participative leader takes suggestions from
  subordinates
• Achievement oriented leader sets challenging
  goals for subordinates and demonstrates
  confidence in their ability to achieve those
  goals.
• Different styles can be used by the same leader
  in different situations (unlike Fiedler)

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Path-Goal Theory Robert House 2.

• Managers influence the paths between subordinate
  behaviors and goals by
• Recognizing and stimulating subordinates need
  for rewards over which the manager has control
• Rewarding goal achievement
• Supporting subordinates efforts to achieve goals
• Helping to remove barriers to goal achievement
• Increasing subordinates opportunities for
  personal satisfaction.
• A comprehensive path-goal theory suggests that
• Managers stimulate subordinate efforts by
  offering valid rewards and linking them to effort
  and performance
• Whether effort results in performance depends on
  subordinate knowledge, skills, and abilities and
  on lack of obstacles in performing the job
• If rewards are valued and fair, subordinates will
  be satisfied and less likely to quit.

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Leader Style TheoryVroom, Yetton, Jago

• Attempts to identify the effective leadership
  style for a given set of circumstances or
  situations
• Uses five leadership styles ranging from AI (the
  leader solves the problem using available
  information) to GII (where subordinates generate
  ideas and reach a consensus solution with the
  leader acting as chairperson)
• A Autocratic C Consultative G Group
• Appropriate leadership style depends on the
  attributes of the problem along with seven
  specific diagnostic question. A decision tree is
  used to determinate the best leadership style for
  a given problem solution.

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Leader Style Theory 2.Vroom, Yetton, Jago
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Tridimensional Leader Effectiveness Theory

• Hersey-Blanchard
• Identifies two leader styles
• Task behavior organize and define the roles of
  followers explain what must be done, and direct
  flow of work
• Relationship behavior maintain personal
  relationship with followers by being supportive,
  sensitive and facilitative
• A LEAD (Leaders Effectiveness and Adaptability
  Description) questionnaire is used to determine
  the leaders preferred style.
• Contains 12 leadership situations in which
  respondents select an alternative action for each
  situation that they believes most closely
  describes how they would behave in that
  situation.
• Asserts that leader flexibility is important in
  unstructured, non-routine, fluid-work situations
  with significant environmental change

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Tridimensional Theory
Effective
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Comparison of Situational Theories
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Selected Factors Influencing Leadership
Effectiveness

• The ability to accurately perceive subordinates.
  Important in each of the situational models.
• Leaders background, experience, and
  personalities strongly affect leadership style
  but styles can generally altered.
• Followers background, experience and
  personalities are important because leadership is
  a mutual-sharing process.
• A leaders style is strongly influenced by
  his/her superiors own style and expectations.
• The leader who understands the nature, makeup and
  demands of subordinates tasks can more
  accurately select the appropriate leadership
  style to fit the task.
• A leaders peers can heavily influence the
  leaders style.

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Selected Factors Influencing Leadership
Effectiveness 2.

• Integrating Influence Factors

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Questions

• Define leadership, and explain the five basis of
  power! (Slide 2-3., text p.378-379)
• Explain the concept of Douglas McGregor about the
  leader attitudes (X-Y Theory)! (S. 4., text p.
  381-383.)
• What do the Personal-Behavioral Theories examine,
  and what kind of these theories have you learned
  (comparison)? (S. 7.,13. text 386, 390)
• What do the Situational Theories examine, and
  what kind of these theories have you learned
  (comparison)? (S. 14., 24. text 391, 399)
• Explain the main points of Managerial Grid
  Theory! (S.11-12., text 388-390.)
• Explain the main points of Vroom-Yetton Leader
  Style Theory! (S. 20-21., text 394-396.)
• What are the selected factors influencing
  leadership effectiveness? (S. 25-26. text
  400-402.)