Transcript ORM6003 Foundations of Leadership

ORM6003 Foundations of
Leadership
Week 3
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Compiled by:
Ronald Keith Bolender, Ed.D. (2005)
Nova Southeastern University
www.bolender.com
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Important Copyright Note
This set of PowerPoint slides may only be
used in sections of ORM6003 Foundations
of Leadership where each student owns a
copy of Leadership: Theory and Practice
(Northouse, 2004).
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References
Fielder, F. E. (1967). A theory of leadership effectiveness.
New York: McGraw-Hill.
Graen, G. B., & Uhl-Bien, M. (1991). The transformation of
professionals into self-managing and partially selfdesigning contributions: Toward a theory of leadermaking. Journal of Management Systems, 3 (3), 33-48.
Northouse, P. G. (2004). Leadership: Theory and practice
(3rd ed.). Thousand Oaks, CA: Sage Publications.
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Devotions
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Chapter 6: Contingency Theory
ICA 3-1 Least Preferred Coworker (LPC)
Measure
In order to better understand the presentation
of contingency theory, this exercise needs to be
completed prior to the lecture.
Complete the Least Preferred Coworker (LPC)
Measure assessment on pages 119-121 in the
textbook (Northouse, 2004).
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Chapter 6: Contingency Theory
Contingency Theory
Contingency theory is a leader-match
theory, which means it tries to match
leaders to appropriate situations.
It is called contingency because it
suggests that a leader’s effectiveness
depends on how well the leader’s style fits
the context.
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Chapter 6: Contingency Theory
To understand the performance of
leaders, it is essential to understand the
situations in which they lead.
Effective leadership is contingent on
matching a leader’s style to the right
setting.
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Chapter 6: Contingency Theory
 Fiedler (1967) developed contingency theory by
studying the styles of many different leaders who
worked in different contexts, primarily military
organizations.
 He assessed leaders’ styles, the situations in which they
worked, and whether or not they were effective. After
analyzing the styles of hundreds of leaders who were
both good and bad, Fiedler and his colleagues were able
to make empirically grounded generalizations about
which styles of leadership were best and which styles
were worst for a given organizational context.
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Chapter 6: Contingency Theory
Contingency theory is concerned with
styles and situations. It provides the
framework for effectively matching the
leader and the situation.
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Chapter 6: Contingency Theory
 Within the framework of contingency theory, leadership
styles are described as task-motivated or relationshipmotivated.
 Task-motivated leaders are concerned primarily with
reaching a goal, whereas relationship-motivated
leaders are concerned with developing class
interpersonal relations.
 To measure leader styles, Fielder developed the Least
Preferred Coworker (LPC) scale. Leaders who score high
on this scale are described as relationship-motivated,
and those who score low on the scale are identified as
task-motivated.
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Chapter 6: Contingency Theory
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Chapter 6: Contingency Theory
This theory is supported by a great deal of
empirical research. In an era in which popular
newsstand accounts of “how to be a successful
leader” abound, contingency theory offers an
approach to leadership that has a long tradition.
Many researchers have tested it and have found
it to be a valid and reliable approach to
explaining how effective leadership can be
achieved.
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Chapter 6: Contingency Theory
 The contingency theory is predictive and therefore
provides useful information regarding the type of
leadership that will most likely be effective in certain
contexts.
 From the data provided by the LPC scale and the
descriptions of three aspects of a situation (i.e. leadermember relations, task structure and position power), it is
possible to determine the probability of success for a given
individual in a given situation.
 This gives contingency theory predictive power
that other leadership theories do not have.
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Chapter 6: Contingency Theory
This theory is advantageous because it does not
require that people be effective in all situations.
So often leaders in organizations feel the need
to be all things to all people, which may be
asking too much of leaders.
Contingency theory argues that leaders should
not expect to be able to lead in every situation.
Companies should try to place leaders in optimal
situations, in situations that are ideal for their
leadership style.
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Chapter 7: Path-Goal Theory
Path-Goal Theory
 Path-goal theory is about how leaders
motivate subordinates to accomplish designated
goals.
It draws heavily from research on what
motivates employees.
The stated goal of this leadership theory is to
enhance employee performance and employee
satisfaction by focusing on employee motivation.
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Chapter 7: Path-Goal Theory
In contrast to the situational approach, which
suggests that a leader must adapt to the
development level of subordinates, and unlike
contingency theory, which emphasizes the match
between the leader’s style and specific situational
variables, path-goal theory emphasizes the
relationship between the leader’s style and
the characteristics of the subordinates and
the work setting.
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Chapter 7: Path-Goal Theory
The underlying assumption of path-goal theory
is derived from expectancy theory, which
suggests that subordinates will be motivated:
If they think they are capable of performing their
work
If they believe their efforts will result in certain
outcome
If they believe that the payoff for doing their work is
worthwhile
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Chapter 7: Path-Goal Theory
 For the leader, the challenge is to use a leadership style
that best meets subordinates’ motivational needs.
 This is done by choosing behaviors that complement or
supplement what is missing in the work setting.
 Leaders try to enhance subordinates’ goal attainment by
providing information or rewards in the work
environment; leaders provide subordinates with the
elements they think subordinates need to reach their
goals.
 By choosing the appropriate style, leaders increase
subordinates’ expectations for success and satisfaction.
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Chapter 7: Path-Goal Theory
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Chapter 7: Path-Goal Theory
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Chapter 7: Path-Goal Theory
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Chapter 7: Path-Goal Theory
ICA 3-2 Path-Goal Leadership
Questionnaire
Complete the Path-Goal Leadership
Questionnaire assessment on pages 142143 in the textbook (Northouse, 2004).
Share with the class what style of
leadership you use most often and which
you use less frequently.
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Chapter 7: Path-Goal Theory
ICA 3-3 In-class Writing Assignment Over Case Study 7.3
Grade: This assignment is worth a maximum of
20 points.
Read Case Study 7.3 on pages 138-140 in
Northouse (2004).
On paper, write out the questions and your
answers to the questions listed at the end of
this case study.
PLEASE PRINT
Break into groups of four to five and discuss this
case study.
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Chapter 8: Leader-Member
Exchange Theory (LMX)
Leader-Member Exchange Theory (LMX)
Up to this point, most of the theories
presented have emphasized leadership
from the view of the leader (trait
approach, skills approach and style
approach) or the follower and the context
(situational leadership, contingency theory
and path-goal theory).
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Chapter 8: Leader-Member
Exchange Theory (LMX)
Leader-member exchange (LMX) theory
takes still another approach and
conceptualizes leadership as a process
that is centered on the interactions
between leaders and followers. LMX
theory makes the dyadic relationship
between leaders and followers the focal
point of the leadership process.
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Chapter 8: Leader-Member
Exchange Theory (LMX)
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Chapter 8: Leader-Member
Exchange Theory (LMX)
Prior to LMX theory, researchers treated
leadership as something leaders did toward all
of their followers.
This assumption implied that leaders treated
followers in a collective way, as a group, using
an average leadership style.
LMX theory challenged this assumption and
directed researchers’ attention to the differences
that might exist between the leader and each of
her or his followers.
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Chapter 8: Leader-Member
Exchange Theory (LMX)
In-Group and Out-Group
The LMX theory is based on the difference
between the leader/follower linkage known as
an in-group versus the out-group
leader/follower linkage.
In-group
Those that are based on expanded and negotiated
role responsibilities (extra-roles).
Out-group
Those that are based on the formal employment
contract (defined roles).
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Chapter 8: Leader-Member
Exchange Theory (LMX)
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Chapter 8: Leader-Member
Exchange Theory (LMX)
LMX theory works in two ways:
It describes leadership
It prescribes leadership
In both instances, the central concept is the
dyadic relationship that a leader forms with each
of her or his subordinates.
Descriptively, LMX theory suggests it is
important to recognize the existence of ingroups and out-groups within a group or
organization. IMPORTANT CONCEPT!
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Chapter 8: Leader-Member
Exchange Theory (LMX)
 The difference in how goals are accomplished using ingroups as compared with out-groups is substantial.
 Working with an in-group allows a leader to accomplish
more work in a more effective manner than working
without one.
 In-group members are willing to do more than is
required of their job description and look for innovative
ways to advance the group’s goals.
 In response to their extra effort and devotion, leaders
give them more responsibilities and more opportunities.
 Leaders also give in-group members more of their time
and support.
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Chapter 8: Leader-Member
Exchange Theory (LMX)
 Out-group members act quite differently from in-group
members.
 Rather than trying to do extra work, out-group members
operate strictly within their prescribed organizational
roles. They do what is required of them, but nothing
more.
 Leaders treat out-group members fairly and according to
the formal contract, but they do not give them special
attention.
 For their efforts, out-group members receive the
standard benefits as described by the job description.
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Chapter 8: Leader-Member
Exchange Theory (LMX)
 Prescriptively, LMX theory is best understood within the
leadership-making model of Graen and Uhl-Bien (1991).
The authors advocated that leaders should create a
special relationship with all subordinates, similar to
those relationships described as in-group relationships.
 Rather than focusing on the differences between ingroup and out-group members, the leadership-making
model suggests that leaders should look for ways to
build trust and respect with al of their subordinates,
thus making the entire work unit an in-group.
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ICA 3-4 Review of HWA 3-4 Interview
Assignment
Break into groups of four or five.
Share the HWA 3-4 interview experience.
Discuss how the information from the
interview will be incorporated into the
HWA 5-2 Interview and Analysis of a
Leader Project.
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Review of the other homework assignments
(HWAs) for Week Four.
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