TEIO13
Leadership and Organizational Change
LE 8 Leadership styles and behaviour
Nicolette Lakemond
Course examinor and course director
Nicolette.Lakemond@liu.se
1
THE ORAL EXAM
Go to classroom , bring ID
Come in good time!
45 min
15 minutes Test with 10 MC Questions
30 minutes preparation 3 questions
Of these three one main question
To examiner
In groups of three
Answer on main question
Complement on the other two
Three new questions
Answer on main question
Complement on the other two
45 min-1hour
approximately
Feedback and indication
of grade
2
1
Criteria for grading
U (Fail)
<10
Fails to provide an
accurate answer
3
4
10-13
14-16
Provides an
Provides an
accurate answer on accurate answer by
the question by
describing and
describing and
discussing the
discussing the
answer, and linking
answer
it to its appropriate
context in a
reflection
3
5
17Provides an
accurate answer by
describing and
discussing the
answer, linking it to
its appropriate
context in a
reflection, showing
clearly how
different models/
theories are
connected to each
other, and by
providing an
accurate example
Leadership at Scania
The invited guests had the opportunity to listen to the President
and CEO, Martin Lundstedt, and Scania Production System
Manager Pia Nordström. He stressed that Scania’s leadership
philosophy is value-driven, and emphasised the importance of
evaluating your own work. “Good leadership is based on being
able to explain motivate the decisions you make,” says
Lundstedt. Nordström explained how Scania has proceeded to
change the leadership environment in the production process.
The company has moved away from the ‘one leader’ approach
to a system of small work groups that places greater demands
on close and committed leadership. The system was
implemented to enhance the quality of the work process, and to
create conditions for increased participation
and motivation
4
among employees.
2
Scania’s leadership and
employeeship principles:
• Coordinate but work independently – take
responsibility
• Work with details and understand the context
• Act now – think long-term
• Build know-how through continuous learning
• Stimulate commitment through involvement
WHAT LEADERSHIP STYLES DO YOU
RECOGNIZE AS CENTRAL TO SCANIA’S
LEADERSHIP?
5
From Frederick Taylor to ???
The History of Management Theory
Taylor
Scientific Mgt
1911
Human- Closed Opened System
Relations
1930
1955
Technology
Behaviour
Situation
Rational
Differentiating
Specialising
Hierarchy
(Skills - Traits)
Relationships
Group norms
FormalInformal
Motivation
Situational
Decision
processes
Stakeholders
6
3
LEADER
CHARACTERISTICS
behaviors
traits and skills
sources of power
SITUATIONAL
CHARACTERISTICS
task
group
organizational
FOLLOWER
CHARACTERISTICS
abilities and skills
attitudes and values
needs and motivations
7
DIRECTIVE
(styrande)
SUPPORTIVE
(stödjande)
Assigns followers specific
tasks, explains methods,
clarifies expectations,
sets goals, and specifies
procedures
Shows consideration,
acceptance, and concern
for needs and feelings of
followers
Behaviour
patterns of
leaders
Involves followers in
making decisions by
consulting to get ideas
and suggestions
CHARISMATIC
(karismatisk)
REWARD &
PUNISHMENT
(belöning och straff)
Provides intrinsic and
extrinsic benefits, punishes
for unwanted follower
behaviours
PARTICIPATIVE
(deltagande)
8
Displays high expectations,
confidence and competence,
communicates vision with
idealogical goals which reflect
followers needs
4
Leadership styles
–54% uses one leadership style
–25% uses two leadership styels
–20% uses three leadership styles
–1% uses four leadership styles
9
LEADER BEHAVIORS
SITUATIONAL FACTORS
THAT INCREASE LEADER
EFFECTIVENESS
Enhancers of Leader
Behavior
Follower characteristics &
situational characteristics
which increase
leaders’ direct influence
Factors that Substitute
for Leadership
Follower characteristics &
situational characteristics
that replace the need for
leadership by influencing
psychological reactions and
behavioral outcomes
FOLLOWER/GROUP
PSYCHOLOGICAL
REACTIONS
Perceptions
Attitudes
Feelings
Motivations
Expectations
SITUATIONAL FACTORS
THAT DECREASE LEADER
EFFECTIVENESS
Neutralizers of Leader
Behavior
Follower characteristics &
situational characteristics
which decrease
leaders’ direct influence
FOLLOWER BEHAVIORAL
OUTCOMES
Performance
Absenteeism
Turnover
10
2-18
5
Contingency models
• Fiedler’s contingency model – one of the first
models – 1967 – least preferred coworker
• Normative decision model – focus on decision styles
• Path-Goal theory – clear the path the followers use
to achieve the goals
• Leader- Member exchange – LMX – relationship
between leader and follower
11
Fiedler LPC
Perception of leaders’ least preferred co-worker
provides insight into leaders’ priority toward
accomplishing tasks or maintaining relationships
LOW LPC – leaders
describe LPC as
incompetent, cold,
untrustworthy, cold, and
quarrelsome
TASK MOTIVATED
HIGH LPC – leaders
describe LPC as
relatively loyal, sincere,
warm, and accepting
RELATIONSHIP MOTIVATED
12
6
FIEDLER LPC continued
TASK MOTIVATED (LOW LPC)
RELATIONSHIP MOTIVATED
(HIGH LPC)
• Draws self-esteem from
completion of task
• Focuses on the task first
• Can be harsh with failing
employees
• Considers competence of
co-workers to be key trait
• Enjoys details
• Draws self-esteem from
interpersonal relationships
• Focuses on people first
• Likes to please others
• Considers loyalty of
coworkers to be key trait
• Gets bored with details
13
Fiedler’s Contingency Model
G
R
O
U
P
P
E
R
F
O
R
M
A
N
C
E
High
Low‐LPC
High‐LPC
Low
Leader‐
Member
Relations
Task Structure
Position Power
GOO
D
HIGH
LO
W
HIGH
BAD
LOW
HIGH
LOW
HIGH
HIGH
LOW
LOW
HIGH
MODERATE
LOW
HIGH
LOW
14
SITUATIONAL CONTROL
7
FIEDLER continued
• Leader style is constant – leader’s effectiveness changes
with the situation
• Situational factors: leader-member relations, task structure,
position power
High control
situation
Moderate control
situation
Low control
situation
Task motivated
(low LPC)
Confident; considerate
and supportive; removes
obstacles and stays out
of the way
Tense; task-focused;
overbearing and overly
controlling; insists on
getting things done
Directive; task-focused,:
serious; little concern for
others
Relationship
motivated (high
LPC)
Bored; aloof and selfcentered; somewhat
autocratic; can interfere
with group
Considerate; open to
ideas and suggestions;
concerned with resolving
conflicts
Tense and nervous; hurt
by group’s conflict;
indecisive
15
Elements of the Normative
Decision Model
 The leader’s decision-making style:
• Autocratic
• Consultative
• Group/Delegation
 Contingency factors:
• Quality of the decision
• Acceptance of subordinates
16
8
Contingency Factors in the
Normative Decision Model
 Quality requirement (QR)
 Commitment probability (CP)
How likely is employee commitment if leader makes the decision alone? How important is the quality of the decision?
 Commitment requirement (CR)  Goal congruence (GC)
Do employees agree with organizational goals?
How important is employee commitment?
 Leader information (LI)
 Employee conflict (CO)
Is there conflict among employees over solution?
Does leader have enough information?
 Structure of the problem (ST)
Is the problem clear?
 Subordinate information (SI)
Do employees have enough information to make a high‐quality 17
decision?
Autocratic style appropriate
• When the leader has sufficient information to make
a decision
• When the quality of the decision is not essential
• When employees do not agree with each other
• When employees do not agree with the goals of the
organizations
Time efficient
18
9
Consultative style
appropriate
• When the leader has sufficient information, but the
employees demand participation to implement the
decision
• When the leader has insufficient information, and
employee consultation will help the leader gather
more information as well as develop commitment
• When followers generally agree with the goals of the
organization
Time investment
19
Path‐Goal Theory
Leader
structuring and
consideration
Situational
contingencies:
Task structure
Employee need
for autonomy
Leader’s Actions:
 Focus on obstacle removal
 Become comfortable
with both task and consideration behaviors
Understand followers’
perception
Effectiveness: Employee satisfaction and motivation
20
10
Implications of Path-Goal
Theory
 Leaders must understand their followers’
perception of the task
 Leaders must take their followers’ need for
challenge and autonomy into account
 When followers need challenge or the task is
challenging, leaders must avoid being
directive
 When the task is routine, boring, or stressful,
leaders must be supportive to motivate their
followers
21
Leader‐Member Exchange LMX
Out‐group
F
F
F
In‐Group
Leader
F
F
F
F
F
F Follower
F
F
F
F
22
11
Stages of LMX
Creation of Emotional Bond
Development of Trust
Testing and Assessment
23
Implications of LMX
In order to use in-groups effectively, leaders
should:

Base in-group membership on current
performance and/or future potential

Periodically review criteria for in-group
membership

Assign tasks to those with best skills

Set clear performance-related guidelines for
in-group membership

Keep membership fluid

Maintain different in-groups
for different
24
activities
12
Substitutes for leadership
•
In some situations leadership is less important
CONSIDERATION STRUCTURING
Follower charactistics
1.
Experience and training
2.
Professionalism
3.
Lack of value for goals
Task characteristics
4. Unambiguous tasks
5. Direct feedback from tasks
6. Challeng task
SUBSTITUTE OR NEUTRALIZER???
CONSIDERATION OR STRUCTURING???
Organizational characteristics
8. Cohesive team
9. Leader’s lack of power
10. Standardization and formalization
11. Organizational rigidity
12. Physical distance between leaders and followers
25
Substitutes for leadership
•
In some situations leadership is less important
CONSIDERATION STRUCTURING
Follower charactistics
1.
Experience and training
2.
Professionalism
3.
Lack of value for goals
substitute
neutralizer
substitute
substitute
neutralizer
Task characteristics
4. Unambiguous tasks
5. Direct feedback from tasks
6. Challeng task
substitute
substitute
substitute
substitute
substitute
Organizational characteristics
8. Cohesive team
9. Leader’s lack of power
10. Standardization and formalization
11. Organizational rigidity
12. Physical distance between leaders and followers
substitute
neutralizer
neutralizer
substitute
neutralizer
substitute
neutralizer
neutralizer
26
13
Contemporary leadership
models
• Inspiration, visions, focus on relationship leaderfollowers
27
Charismatic Leadership

High self‐confidence

Strong convictions about ideas

High energy and enthusiasm

Expressive

Excellent communication

Active image‐building
Leader
Charismatic
Leadership
Followers

Sense of crisis

Perceived need for change

Opportunity to articulate ideological goal

Availability of dramatic symbols

Opportunity to articulate followers’ role
The situation


High degree of respect and esteem for the leader

Loyalty and devotion to the leader

Complex task 
Affection for the leader

No external reward available

High performance expectations

Flexible and organic structure

Non‐bureaucratic cultures

Unquestioning obedience
28
Organizational life cycle (early and late)
14
Factors in Transformational
Leadership
Intellectual
Stimulation
New ideas and
empowerment
Charisma and
Inspiration
Individual
Consideration
Overcome resistance
to change
Motivate and
encourage
Transformational Leadership
29
Transactional and
Transformational Leadership
Transactional
Transformational
 Focus on day-today activities
 Focused on
change
 Exchange
between leader
and followers
 Emotional bond
between leader
and followers
30
15
Transactional Leadership
 Contingent Reward
• Leader provides rewards in exchange for
performance
• Can be very productive
 Management by Exception (MBE)
• Leader gets involved only to correct and
provide negative feedback
• Generally not effective
31
Leadership at Scania
The invited guests had the opportunity to listen to the President
and CEO, Martin Lundstedt, and Scania Production System
Manager Pia Nordström. He stressed that Scania’s leadership
philosophy is value-driven, and emphasised the importance of
evaluating your own work. “Good leadership is based on being
able to explain motivate the decisions you make,” says
Lundstedt. Nordström explained how Scania has proceeded to
change the leadership environment in the production process.
The company has moved away from the ‘one leader’ approach
to a system of small work groups that places greater demands
on close and committed leadership. The system was
implemented to enhance the quality of the work process, and to
create conditions for increased 32
participation and motivation
among employees.
16
Scania’s leadership and
employeeship principles:
• Coordinate but work independently – take
responsibility
• Work with details and understand the context
• Act now – think long-term
• Build know-how through continuous learning
• Stimulate commitment through involvement
WHAT LEADERSHIP STYLES DO YOU
RECOGNIZE AS CENTRAL TO SCANIA’S
LEADERSHIP?
33
Upcoming
34
17