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Chapter 16 - Leadership
16-16
of this theory to help transition welfare recipients to gainful
employment.
(c) Contingency factors: situational variables that cause one style of
leadership to be more effective than another.
(d) Two important contingency factors of the path-goal theory:
(i) Employee characteristics:
1. Locus of control.
2. Task ability.
3. Need for achievement.
4. Experience.
5. Need for clarity.
(ii) Environmental factors:
1. Task structure.
2. Work-group dynamics.
(e) These contingency factors influence the effectiveness of each type of
leader behavior.
(f) The results of the research studies testing various predictions derived
from House’s original model have been mixed.
(g) House thus proposed a new version of path-goal theory in 1996 based
on these results and the accumulation of new knowledge about OB.
(2) A Reformulated Theory
Chapter 16 - Leadership
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(a) Figure 16-3: A General Representation of House’s Revised Path-
Goal Theory presents the revisions to the path-goal theory. See
Slide 16-27
(b) In the revised path-goal theory: See Slide 16-26
(i) Leadership is more complex and involves a greater variety of
leader behavior.
(ii) House places more emphasis on the need for leaders to foster
intrinsic motivation through empowerment.
(iii)The model incorporates shared leadership, based on the premise
that an employee does not have to be a supervisor or manager to
engage in leader behavior.
(c) Table 16-5: Categories of Leader Behavior within the Revised
Path-Goal Theory describes the eight categories of leader behavior
from the expanded list.
(3) Takeaways from House’s Theory
(a) Effective leaders possess and use more than one style of leadership.
(b) The theory offers specific suggestions for how leaders can help
employees.
(i) Leaders are encouraged to clarify the paths to goal
accomplishment and to remove any obstacles that may impair an
employee’s ability to achieve his or her goals.
Chapter 16 - Leadership
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(c) A small set of employee characteristics and environmental factors are
relevant contingency factors.
iv) Applying Situational Theories See Slide 16-28
(1) Although researchers and practitioners support the logic of situational
leadership, the practical application of such theories has not been clearly
developed.
(2) A team of researchers have proposed a five-step general strategy that
managers can use across a variety of situations:
(a) Identify important outcomes.
(b) Identify relevant leadership types/behaviors.
(c) Identify situational conditions.
(d) Match leadership to the conditions at hand.
(e) Determine how to make the match.
v) Caveat When Applying Situational Theories
(1) There can be unintended negative consequences when managers use a
situational approach with members from a team.
(2) Treating group members differently can result in some employees feeling
that they are not among the leader’s “in-group” and this can have a
counterproductive effect on employees’ self-efficacy and subsequent
group performance.
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IV. The Full-Range Model of Leadership: From Laissez-Faire to Transformational
Leadership
i) The Full-Range Model of Leadership Overview
(1) The full-range model of leadership is one of the most recent approaches
to leadership.
(2) Bass and Avolio proposed that leadership behavior varies along a
continuum from laissez-faire leadership to transactional leadership to
transformational leadership.
(a) Transactional Leadership See Slide 16-29
(i) Transactional leadership: focuses on clarifying employees’ roles
and task requirements and providing rewards contingent on
performance.
(ii) Transactional leadership encompasses the fundamental
managerial activities of setting goals, monitoring progress toward
goal achievement, and rewarding and punishing people for their
level of goal accomplishment.
(b) Transformational Leadership See Slide 16-30
(i) Transformational leaders: engender trust, seek to develop
leadership in others, exhibit self-sacrifice and serve as moral
agents, focusing themselves and followers on objectives that
transcend the more immediate needs of the work group.
Chapter 16 - Leadership
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(ii) This form of leadership fosters higher levels of intrinsic motivation,
trust, commitment, and loyalty from followers than does
transactional leadership.
(iii)Transactional leadership is a prerequisite to effective leadership,
and the best leaders learn to display various degrees of both
transactional and transformational leadership.
ii) How Does Transformational Leadership Transform Followers?
(1) Transformational leaders transform followers by changing their goals,
values, needs, beliefs, and aspirations.
(2) They appeal to followers’ self-concepts—namely their values and personal
identity.
(3) Figure 16-4: A Transformational Model of Leadership presents a
model of how leaders accomplish this transformational process. See
Slide 16-32
(4) Transformational leader behavior is influenced by various individual and
organizational characteristics, including personality, emotional intelligence
and organizational culture.
(a) Transformational leaders tend to have personalities that are more
extraverted, agreeable, and proactive and less neurotic than
nontransformational leaders.
Chapter 16 - Leadership
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(b) Cultures that are adaptive and flexible rather than rigid and
bureaucratic are more likely to create environments that foster the
opportunity for transformational leadership to be exhibited.
(5) Transformational leaders engage in four key sets of leader behavior:
(a) Inspirational motivation: establishing an attractive vision of the
future, the use of emotional arguments, and exhibition of optimism and
enthusiasm.
(b) Idealized influence: includes behaviors such as sacrificing for the
good of the group, being a role model, and displaying high ethical
standards.
(c) Individualized consideration: behaviors associated with providing
support, encouragement, empowerment, and coaching to employees.
(d) Intellectual stimulation: involves behaviors that encourage
employees to question the status quo and to seek innovative and
creative solutions to organizational problems.
iii) Research and Managerial Implications
(1) Components of the transformational model of leadership have been the
most widely researched leadership topics over the last decade.
(2) Overall the relationships outlined in Figure 16-4 generally were supported
by previous research.
Chapter 16 - Leadership
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(a) A meta-analysis indicated that transformational leadership was
positively associated with measures of leadership effectiveness and
employees’ job satisfaction.
(b) At the organizational level, a second meta-analysis found a positive
correlation between transformational leadership and measures of
organizational effectiveness.
(3) Support for transformational leadership underscores six important
managerial implications: See Slide 16-33
(a) The establishment of a positive vision of the future should be
considered a first step at applying transformational leadership.
(b) The best leaders are not just transformational; they are both
transactional and transformational. Leaders should attempt to use
these two types of leadership while avoiding a laissez-faire or “wait-
and-see” style.
(c) Transformational leadership not only affects individual-level outcomes
but it also influences group dynamics and group-level outcomes.
(d) Transformational leadership works virtually.
(e) Employees at any level in an organization can be trained to be more
transactional or transformational.
(f) Transformational leaders can be ethical or unethical. Top
management can create and maintain ethical transformational
Chapter 16 - Leadership
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leadership by: See Slide 16-34
(i) Creating and enforcing a clearly stated code of ethics.
(ii) Recruiting, selecting, and promoting people who display ethical
behavior.
(iii)Developing performance expectations around the treatment of
employees and measuring them in performance appraisals.
(iv)Training employees to value diversity.
(v) Identifying, rewarding, and publicly praising employees who
exemplify high moral conduct.
V. Additional Perspectives on Leadership
i) The Leader-Member Exchange Model of Leadership See Slide 16-
35
(1) Leader-Member Exchange Overview
(a) The leader-member exchange (LMX) model of leadership revolves
around the development of dyadic relationships between managers
and their direct reports.
(b) LMX theory does not assume that leader behavior is characterized by
a stable or average leadership style.
(c) The LMX model is based on the assumption that leaders develop
unique one-to-one relationships with each of the people reporting to
them.
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(d) Types of leader-member exchange relations: See Slide 16-36
(i) In-group exchange: a partnership characterized by mutual trust,
respect, and liking.
(ii) Out-group exchange: a partnership characterized by a lack of
mutual trust, respect and liking.
(2) Research Findings
(a) If LMX is correct, there should be a significant relationship between the
type of leader member exchange and job-related outcomes. Research
supports this prediction.
(b) A positive leader–member exchange was positively associated with job
satisfaction, intentions to stay employed at the company, job
performance, commitment to organizational change, trust between
managers and employees, procedural and distributive justice,
willingness to help coworkers, and satisfaction with leadership.
(c) Results from a recent meta-analysis revealed a moderately strong,
positive relationship between LMX and organizational citizenship
behaviors.
(d) Studies also have identified a variety of variables that influence the
quality of an LMX.
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(3) Managerial Implications See Slide 16-37
(a) Leaders are encouraged to establish high-performance expectations
for all their direct reports because setting high-performance standards
fosters high-quality LMXs.
(b) Because personality and demographic similarity between leaders and
followers is associated with higher LMXs, managers need to be careful
that they don’t create a homogeneous work environment in the spirit of
having positive relationships with their direct reports.
(c) If you find yourself with low LMX, to improve the quality of your LMX:
(i) Stay focused on your departments’ goals and remain positive about
your ability to accomplish your goals.
(ii) Do not fall prey to feeling powerless, and empower yourself to get
things done.
(iii)Exercise the power you have by focusing on circumstances you
can control and avoid dwelling on circumstances you cannot
control.
(iv)Work on improving your relationship with your manager. Begin by
examining the level of trust between the two of you and then try to
improve it by frequently and effectively communicating, following
through on your commitments, and achieving your goals.
(v) Use an authentic, respectful, and assertive approach to resolve
Chapter 16 - Leadership
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differences with your manager.
ii) Shared Leadership
(1) Shared leadership: simultaneous, ongoing, mutual influence process in
which people share responsibility for leading regardless of formal roles
and titles. See Slide 16-38
(2) Shared leadership is based on the idea that people need to share
information and collaborate to get work done.
(3) Shared leadership is most likely to be needed when people work in teams,
when people are involved in complex projects involving interdependence
and creativity, and are doing knowledge work.
(4) As to research findings, shared leadership in teams was positively
associated with group cohesion, group citizenship, and group
effectiveness.
(5) Table 16-6: Key Questions and Answers to Consider When
Developing a Shared Leadership contains a list of key questions and
answers that managers should consider when determining how they can
develop shared leadership.
iii) Servant-Leadership
(1) Servant-leadership is more a philosophy of managing than a testable
theory.
(2) Servant-leadership: focuses on increased service to others rather than
Chapter 16 - Leadership
16-27
oneself. See Slide 16-39
(3) Because the focus of servant-leadership is serving others over self-
interest, servant-leaders are less likely to engage in self-serving behaviors
that hurt others.
(4) Embedding servant-leadership into an organization’s culture requires
actions as well as words.
(5) Table 16-7: Characteristics of the Servant-Leader identifies the
characteristics of servant-leaders.
(6) Servant-leadership was found to be positively associated with employees’
performance, organizational commitment, job satisfaction, creativity,
organizational citizenship behaviors, and perceptions of justice and
negatively related to counterproductive work behavior.
iv) The Role of Followers in the Leadership Process
(1) Although very little research has been devoted to the topic of the role of
followers in the leadership process, it is an important issue to consider
because the success of both leaders and followers is contingent on the
dynamic relationship among the people involved.
(2) Leaders and followers are closely linked—you cannot lead without having
followers, and you cannot follow without having leaders.
(3) The Real World/Real People: Nancy Lublin Believes That Her
Followers Make Her Successful profiles one executive’s views on
developing a mutually reinforcing relationship.
Chapter 16 - Leadership
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(4) Followers vary in terms of the extent to which they commit, comply, and
resist a leader’s influence attempts.
(5) One researcher identified three types of followers: helpers, independents,
and rebels.
(a) Helpers show deference and comply with the leadership.
(b) Independents distance themselves from the leadership and show less
compliance.
(c) Rebels show divergence from the leader and are at least compliant.
(6) Followers seek, admire, and respect leaders who foster three emotional
responses in others:
(a) Feelings of significance: what one does at work is important and
meaningful.
(b) Community: a sense of unity encourages people to treat others with
respect and dignity and to work together in pursuit of organizational
goals.
(c) Excitement: people are engaged and feel energy at work.
(7) Followers can use a four step process to enhance the achievement of
these emotions through their leader-follower relationship:
(a) Followers must understand their boss and have an appreciation for
their manager’s leadership style, interpersonal style, goals,
expectations, pressures, and strengths and weaknesses.
