LEADERSHIP

Roz Brewer, CEO

Walgreens,2022.

Reading: Chapter 9
Learning Objectives

LO1 Define leadership.

LO2 Explain and evaluate the trait theory of
leadership.
LO3 Describe the dimensions of leadership behaviour
from the Ohio State studies.
LO4 Describe and evaluate the situational theories of
leadership: contingency theory and path-goal
theory.
LO5 Describe transformational leadership.
Learning Objectives

LO6 Discuss the theories of positive leadership,

including empowering leadership, ethical
leadership, authentic leadership, and servant
leadership.
LO7 Explain the influence of gender differences in
leadership.
LO8 Discuss the GLOBE project and explain the
role that culture plays in leadership.
• The use of power and influence to direct the
activities of followers toward goal achievement
What Is Leadership?

 Leadership is about motivating people and gaining their

commitment about what needs to be done and how to get there.
 Effective leaders can change the way people think, feel, and
behave, and they can have a positive effect on individuals,
groups, units, and even entire organizations.
 Leadership has a strong effect on an organization’s strategy,
success, and very survival.
What type of person makes a great leader?

Identify an example of someone you thought was

a good leader (currently or in the past).
 What traits did they
have?
 How did these traits differ
from someone you
identify as a bad leader?
The Trait Theory of Leadership

 According to this theory: Leadership depends on the personal

qualities or traits of the leader.
 Based on the assumption that those who become leaders and do
a good job of it possess a special set of traits that distinguish
them from the masses of followers.
 Traits Associated with Leadership Effectiveness

 Intelligence
 Energy and drive
 Self-confidence
 Dominance
 Motivation to lead
 Emotional stability
 Honesty and integrity
 Need for achievement
 Sociability
Research on Leadership Traits
 All five of the “Big Five” dimensions of personality are
related to leadership emergence and success.
 Of the “Big Five,” extraversion and conscientiousness are
the most consistent predictors of leadership effectiveness.
 A recent review on top executives’ personalities concluded
that the personalities of top executives can influence firm
performance.
 Research on Leadership Traits

 A personality trait that has

been linked to leader
behaviours and effectiveness is
narcissism.
 Narcissism combines
grandiosity, attention seeking,
an unrealistically inflated self-
view, a need for that self-view
to be continuously reinforced
and a general lack of regard
for others.
Research on Leadership Traits
 Narcissistic CE Os engage in questionable behaviours such as
bullying and fraud.
 There is also some evidence that CE O narcissism is positively
related to innovation and firm performance.
 Narcissism seems to be associated with extreme variations in
leader behaviour that tends to result in greater performance
volatility.

Political leaders and narcissism:

https://www.youtube.com/watch?v=wVFagC-Ucxo
Limitations of the Trait Approach

 Does not tell us what leaders do to influence others successfully.

 It can lead to bias and discrimination when evaluating a leader’s
effectiveness and when making decisions about promoting
people to leadership positions.
Limitations of the Trait Approach
 Leadership categorization theory: People are more likely to
view somebody as a leader and to evaluate them as a more
effective leader when they possess prototypical characteristics
of leadership.
 It is not a good idea to focus exclusively on traits when making
decisions and judgments about leadership potential and
effectiveness.
 The most crucial problem is that it does not consider the
situation in which leadership occurs.
 SO…
• Let’s consider what effective leaders
actually DO.
• In other words, anyone can aim to be an
effective leader if they work on
developing effective leader behaviors…
The Behaviour of Leaders
 What are the crucial behaviours leaders engage in, and how do
these behaviours influence employee performance and
satisfaction?
 Is there a particular leadership style that is more effective than
other styles?
Ohio State University Leadership
Study
 The most involved, systematic study of leadership took place at
Ohio State University in the 1940s.
 Employees described their superiors along a number of
behavioural dimensions.
 The results revealed two basic kinds of behaviour:
 Consideration
 Initiating structure
Dimension 1: Initiating structure

• Task-oriented
behaviours
• Assign work, clarify
responsibilities
• Set goals and deadlines,
provide feedback
• Establish work
procedures, plan future
work
Dimension 2: Consideration

• People-oriented behaviours
• Concern for employee needs
• Make workplace pleasant
• Recognize employee
contributions
• Listen to employees
The Consequences of Consideration & Structure

 Consideration and initiating structure are not incompatible; a

leader could be high, low, or average on one or both dimensions.
 Consideration and initiating structure both contribute positively
to employees’ motivation, job satisfaction, and leader
effectiveness.
 Consideration is more strongly related to follower satisfaction,
motivation, and leader effectiveness.
 Initiating structure is slightly more strongly related to leader job
performance and group performance.
 What is missing?
 Think about the most
effective leaders you can
name
 Do the leader behaviours
and styles discussed thus far
capture what it was that
made these leaders so
effective?

 So what’s missing?
Consideration & Initiating Structure?

 The relative importance of consideration and initiating structure

varies according to the nature of the leadership situation.
 i.e., The effects of consideration and initiating structure depend
on characteristics of the task, the employee, and the setting in
which work is performed.
• The EFFECTIVENESS of initiating
structure and consideration vary across
followers and situations…


SITUATIONAL THEORIES OF LEADERSHIP

 Basic Assumptions
 leader behavior effectiveness depends on the
situation
 must identify situational conditions or contingencies
in order to understand which leadership style will
work best
 I.E, the characteristics of the employees, the nature
of the task, characteristics of the organization.
 Two MAJOR situational theories of leadership
that are among the best known and most
studied:

 House’s Path-Goal Theory

 Fiedler’s Contingency Theory
House’s Path–Goal Theory

 Robert House’s theory is concerned with the situations under

which various leader behaviours are most effective.
 Path–Goal Theory is concerned with leader behaviours.
 Why did House choose the name “path–goal” for his theory?
House’s Path–Goal Theory
 The most important activities of leaders are those that clarify the
paths to various goals of interest to employees.
 The opportunity to achieve such goals should promote job
satisfaction, leader acceptance, and high effort.
 The effective leader forms a connection between employee goals
and organizational goals.
 leaders must make rewards dependent on performance and
ensure that employees have a clear picture of how they can
achieve these rewards.
Leader Behaviour
 Path–Goal Theory is concerned with four specific kinds of leader
behaviour/styles and their capacity to cultivate employee
satisfaction and performance.
Directive Behaviour

 Directive leaders schedule work, maintain performance

standards, and let employees know what is expected of them.
 It is identical to initiating structure.
Supportive Behaviour

 Supportive leaders are friendly, approachable, and concerned

with pleasant interpersonal relationships.
 It is identical to consideration.
Participative Behaviour

 Participative leaders consult with employees about work-related

matters and consider their opinions.
Achievement-Oriented Behaviour

 Achievement-oriented leaders encourage employees to exert

high effort and strive for a high level of goal accomplishment.
 They express confidence that employees can reach these goals.
Situational Factors

BUT the most effective leadership style depends on certain

“contingencies” of the situation that the leader faces …

 WHAT SITUATIONAL FACTORS ARE IMPORTANT TO

THE TYPE OF LEADERSHIP STYLE USED?
Situational Factors

 The effectiveness of each set of behaviours depends on the

“situation” that the leader encounters.
 Path–Goal Theory is concerned with two primary classes of
“situational” factors:
 Employee characteristics
 Environmental factors
Path-Goal Leadership Model
Employee
Contingencies
Leader Leader
Behaviours Effectiveness
• Directive • Employee
• Supportive motivation
• Participative • Employee
• Achievement- satisfaction
oriented • Acceptance of
leader
Environmental
Contingencies
Environmental Factors
 The effectiveness of leadership behaviour depends on the
particular work environment:
 When tasks are clear and routine, directive leadership is
redundant and unnecessary and participative leadership is
not useful.
 When tasks are challenging but ambiguous, directive and
participative leadership is effective.
 When a job is frustrating or dissatisfying, supportive
leadership is most effective.
Employee Characteristics
 Different types of employees need or prefer different forms of
leadership:
 High need achievers should work well under achievement-
oriented leadership.
 Employees who prefer to be told what to do respond best to
directive leadership.
 When employees have low task abilities, they will
appreciate directive leadership.
Summary:
House’s Path–Goal Theory
 There is substantial evidence that supportive or considerate
leader behaviour is most beneficial in supervising routine,
frustrating, or dissatisfying jobs.
 There is some evidence that directive or structuring leader
behaviour is most effective on ambiguous, less-structured jobs.
 The theory appears to work better in predicting employees’ job
satisfaction and acceptance of the leader than in predicting job
performance.
Fiedler’s Contingency Theory
 The association between leadership orientation and group
effectiveness is contingent on (depends on) the extent to
which the situation is “favourable” for exerting influence.

 Some situations are more “favourable” than others, and

these situations require different orientations on the part of
the leader.
Situational Favourableness
 Factors that affect situational favourableness, in order of
importance, are the following:
 Leader-member relations
 Task structure
 Position power
Situational Favourableness
 The situation is most favourable for leadership when:
 Leader-member relations are good
 The task is structured
 The leader has strong position power
Situational Favourableness
 The situation is least favourable for leadership when:
 Leader-member relations are poor
 The task is unstructured
 The leader has weak position power

This model suggests that “situational favorableness” or

“unfavorableness” will determine the suitability of certain
leadership styles.

You can read the text for details.

 A pattern of behaviours that inspires followers to
commit to a shared vision that provides meaning to
their work and sets the leader up as a role model who
helps followers reach their potential.

 It is most often contrasted with so-called

“transactional leadership,” which is built around
exchanges of rewards and punishments, or “laissez-
faire” leadership, which is the absence of action.
Transformational leadership

 Why is it called “transformational” leadership?

 The answer is that the way employees view their jobs is what
gets transformed.
 Even if the job isn’t actually changed in a formal way,
transformational leaders can cause employees to feel like
their jobs have more significance.
Transformational leadership
 There are four key dimensions of transformational
leader behaviour:
 Intellectual stimulation
 Individualized consideration
 Inspirational motivation
 Charisma
 Intellectual Stimulation
 Stimulates thinking about
problems in new ways.
 Contributes to the “new vision”
aspect of transformational
leadership.
 challenges assumptions, takes
risks, and solicits followers’ ideas.
 creativity and novelty.

Do you think Jensen Huang, CEO of

Nvidia is a transformational leader?
https://www.youtube.com/watch?v=4BZ2dk
03pk4
Individualized Consideration

 This involves treating employees as distinct individuals,

indicating concern for their needs and personal development,
and serving as a mentor or coach when appropriate.

 Indra Nooyi, former CEO of Pepsico

https://www.youtube.com/watch?v=xl32J4TCS0E&list=RDCMUCGwuxdEeCf0TIA2RbPOj-8g&index=8
Inspirational Motivation
 This involves the communication of visions that are appealing
and inspiring to followers.
 Leaders with inspirational motivation have a strong vision for
the future based on values and ideals.
 They stimulate enthusiasm, challenge followers with high
standards, communicate optimism about future goal attainment,
and provide meaning for the task at hand.
 They inspire followers using symbolic actions and persuasion.
Charisma

 The ability to command strong loyalty and devotion from

followers and thus have the potential for strong influence among
them.
 This is the most important aspect of transformational leadership.
 Charisma provides the emotional aspect of transformational
leadership.
 The emergence of charisma is a complex function of traits,
behaviours, and being in the right place at the right time.
Transformational Leadership:
Research Evidence

 Transformational leadership is strongly related to follower

motivation, work engagement, satisfaction, organizational
commitment, leader performance, leader effectiveness, and
individual, group, and organization performance.
 Charismatic leadership has also been found to be strongly
related to follower satisfaction and leadership effectiveness.
Transformational Leadership:
Research Evidence
 Compared to other forms of leader behaviour, transformational
leadership has been found to be the most consistent predictor of
effective leadership.
 Some evidence that CE O transformational leadership is
positively related to firm performance, especially when the
environment is uncertain.
Transformational Leadership:
Research Evidence
 Transformational leadership is especially effective during times
of change and for obtaining employees’ commitment to change.
 Overall, the best leaders are both transformational and
transactional.
Theories of Positive Leadership
 Leadership research has begun to focus on new styles of
leadership that emphasize ethical and moral leader behaviour.
 These new forms of leadership represent what has been
described as positive leadership.
Theories of Positive Leadership
 Positive leadership focuses on leader behaviours and
interpersonal dynamics that increase followers’ confidence and
result in positive outcomes and include:
 Empowering leadership
 Ethical leadership
 Authentic leadership
 Servant leadership
Empowering Leadership
 Empowering leadership involves implementing conditions that
enable power to be shared with employees.
 Empowering leaders provide participation and autonomy in
decision making.
 Employees experience a state of psychological empowerment
that consists of feelings of meaning, competence, self-
determination, and impact.
Empowering Leadership

 Empowering leadership provides employees with a greater

feeling of control over their work and a sense that they can
make a difference in their organization’s effectiveness.
 Empowering leadership has been found to be positively related
to higher self-efficacy and adaptability, job performance, and
creativity-relevant behaviours.
Ethical Leadership

 Ethical leadership involves the

demonstration of normatively
appropriate conduct through personal
actions and interpersonal relationships,
and the promotion of such conduct to
followers through two-way
communication, reinforcement, and
decision making.
 You can read more about this topic in
our text.
 How is Marvin Ellison, CEO of Lowes
an example of ethical leadership?
https://www.youtube.com/watch?v=WjkdO8d8FKA
Authentic Leadership

 Authentic leadership is a form

of leadership that involves
being true to oneself.
 Authentic leaders know & act
upon their true values, beliefs,
and strengths.
 Their conduct & behaviour is
guided by their internal values.
Authentic Leadership

Consists of four related but

distinct behaviours:
 Self-awareness
 Relational transparency
 Balanced processing
 Internalized moral
perspective
Self-Awareness

 An accurate understanding of one’s strengths and weaknesses

and an awareness of one’s impact on others.
Relational Transparency
 The presenting of one’s true or authentic self to others and the
open sharing of information and expressions of one’s true
thoughts and feelings.
Balanced Processing
 The objective analysis of all relevant information before making
a decision and consideration of views that challenge one’s own
position.
Internalized Moral Perspective

 They have internal moral standards and values that guide their
behaviour and decision making.
What qualities suggest this CEO is an authentic
leader?

https://www.youtube.com/watch?v=oRV4JVPz2O0
Servant Leadership
 Servant leadership is a form of leadership that involves going
beyond one’s own self-interests and having a genuine concern to
serve others and a motivation to lead.
 The focus of servant leadership is a concern for the needs of
followers and their growth and development.
 A servant leader is somebody who wants to serve first and lead
second.
Servant Leadership Characteristics

 Empowering people
 Humility
 Authenticity
 Interpersonal acceptance
 Providing direction
 Stewardship

In what way is Microsoft CEO

Satya Nadella a servant leader?
https://www.youtube.com/watch?v=nq8rEe
J4Tak
What Style of Leadership Is Best?

 An effective leader needs to be capable of using different styles

of leadership.
 The key issue is knowing what style of leadership is required in
each situation that a leader encounters.
 Key situational variables include the nature of the task,
employee characteristics, characteristics of the organization, and
national culture.
What Style of Leadership Is Best?

 Leadership will be effective when the leadership style is

matched to the situation.
 It is also important to understand how a leader influences
followers and the processes or mechanisms that link leadership
to leadership effectiveness.
 Although there are many possible mechanisms, they can be
grouped into the following three categories: cognitive,
affective, and behavioural.
Gender and Leadership

 Do men and women adopt different leadership styles?

Gender and Leadership

 A review of 95 studies found that there are some

differences in certain situations such as whether an
organization is male or female dominated.
 Men are perceived as more effective in organizations that
are “masculine” and “male dominated”; women are
perceived as more effective in organizations that are
“feminine” and “female-dominated”.
 When these factors are taken into account, men and
women do not differ in perceived leadership
effectiveness.
Women and Leadership
 Women hold very few top leadership positions in
Canadian organizations.
 Among the top 500 companies in the world, only three
percent have female CEOs.
 Women also hold a minority of senior leadership positions
in the United States and Europe.
 How can we explain this gap in leadership?
Women and Leadership
 According to Alice Eagly and Linda Carli, women face a
labyrinth in their career because of the many twists, turns,
detours, and dead ends that women encounter along their
way up the organizational hierarchy.
 It is the sum of all of the barriers women face rather than
one particular barrier.
 Barriers that arise for women leaders may also be
explained by role congruity theory (RCT).
Role Congruity Theory

 Prejudice against female leaders is the result of an

incongruity between the perceived characteristics of
women and the perceived requirements of leadership
roles.
对女性领导者的偏见是对女性特征的感知与对领导角色的感知要求之间的不
协调的结果。
 Leaders are perceived as similar to men and not very
similar to women. 领导者被认为与男性相似，与女性不太相似。
 Men are perceived as having agentic traits while women
are perceived as having communal traits.
男性被认为具有代理特征，而女性被认为具有公共特征。
Agentic and Communal Traits
 Men are perceived as having agentic traits, which convey
assertion and control and are generally associated with
effective leadership.
 Women are perceived as having communal traits, which
convey a concern for the compassionate treatment of
others.
 Males but not females are perceived as having traits that
are associated with leadership.
Cross-Cultural Leadership
 Are leadership styles equally effective across cultures?
 The Global Leadership and Organizational Behaviour
Effectiveness (GLOBE) research project is the most
extensive and ambitious study ever undertaken on global
leadership.
 You can read more about

this topic in our text…

Culture and Leadership

 The Global Leadership and Organizational Behaviour

Effectiveness (GLOBE) research project is the most
extensive and ambitious study ever undertaken on global
leadership.
The GLOBE Project

 Identified nine cultural dimensions that distinguish one

society from another.
 Based on these cultural dimensions, they identified 10
culture clusters.
 The culture clusters differ with respect to how they score
on the nine cultural dimensions.
Cultural Dimensions from the GLOBE
Project
 Performance Orientation
 Assertiveness
 Future Orientation
 Humane Orientation
 Institutional Collectivism
 In-Group Collectivism
 Gender Egalitarianism
 Power Distance
 Uncertainty Avoidance
The GLOBE Project

 GLOBE wanted to know if the same attributes that lead to

successful leadership in one country lead to success in
other countries?
 Citizens in each nation have implicit assumptions
regarding requisite leadership qualities, something known
as implicit leadership theory.
Implicit Leadership Theory
 A theory that states that individuals hold a set of beliefs
about the kinds of attributes, personality characteristics,
skills, and behaviours that contribute to or impede
outstanding leadership.
 Culturally endorsed implicit leadership theory (CLT)
refers to belief systems that are shared among individuals
in common cultures.
Global Leadership Dimensions
 Global leadership dimensions that are contributors to or
inhibitors of outstanding leadership:
 Charismatic/Value-Based
 Team-Oriented
 Participative
 Humane-Oriented
 Autonomous
 Self-Protective
Global Leadership Dimensions
 Leadership profiles for each national culture and clusters
of cultures were created based on scores on the six global
leadership dimensions.
 Cultures and clusters differ significantly on all six of the
global leadership dimensions.
 Canada and the U.S. score high on the charismatic/value-
based, participative, and humane oriented dimensions, and
low on the self-protective dimension, and medium on the
team-oriented and autonomous dimensions.
Leader Attributes
 Many leader attributes such as being honest, decisive,
motivational, and dynamic were found to be universally
desirable and believed to facilitate outstanding leadership
in all GLOBE countries.
 Some leader attributes such as being loners, irritable,
egocentric, and ruthless are ineffective in all GLOBE
countries.
 Some attributes are culturally contingent – they are
effective in some cultures but are either ineffective or
dysfunctional in others.
The GLOBE Project
 The results of the GLOBE project show that while there
are similarities across cultures in terms of what are
considered to be desirable and undesirable leadership
attributes, there are also important differences.
 Managers need to understand the similarities and
differences in what makes someone an effective leader
across cultures if they are to be effective global leaders.
Global Leadership
 Global leadership involves having leadership capabilities
required to function effectively in different cultures and
the ability to cross language, social, economic, and
political borders.
 The essence of global leadership is the ability to influence
people who are not like the leader and come from
different cultural backgrounds.
 Summary
 Consider theories of leadership - the trait theory and the behavior
based approach from the Ohio State studies.
 Situational theories of leadership include contingency theory and
path-goal theory.
 A different style of leadership is transformational leadership.
 Other theories of leadership include positive leadership such as
empowering leadership, ethical leadership, authentic leadership,
and servant leadership.
 Consider gender issues in leadership and cross cultural issues in
leadership (via the GLOBE project).