C H A P T E R: F O U R T E E N
Leadership in
Organizational
Settings
14
McGraw-Hill Ryerson
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Leadership at Lakeport Beverages
Teresa Cascioli’s
leadership has
transformed Hamiltonbased Lakeport Beverage
Corp. into a major
competitor in Ontario’s
take-home beer market.
Courtesy of Lakeport Beverages Corp.
McShane/ Canadian OB 6e
2
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
What is Leadership?
Leadership is the ability
to influence, motivate,
and enable others to
contribute toward the
effectiveness of the
organizations of which
they are members.
Courtesy of Lakeport Beverages Corp.
McShane/ Canadian OB 6e
3
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Perspectives of Leadership
Competency
Perspective
Implicit
Leadership
Perspective
Leadership
Perspectives
Transformational
Perspective
McShane/ Canadian OB 6e
Behavioural
Perspective
Contingency
Perspective
4
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Seven Leadership Competencies
Emotional
Intelligence
Integrity
Drive
Leadership
Motivation
• Perceiving, assimilating, understanding,
and regulating emotions
• Truthfulness
• Translates words into deeds
• Inner motivation to pursue goals
• Need for achievement, quest to learn
• High need for socialized power to
accomplish team’s or firm’s goals
more
McShane/ Canadian OB 6e
5
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Seven Leadership Competencies (con’t)
Self-Confidence
• High self-efficacy regarding ability to
lead others
Intelligence
• Above average cognitive ability
• Can analyze problems/opportunities
Knowledge of
the Business
• Familiar with business environment
• Aids intuitive decision making
McShane/ Canadian OB 6e
6
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
In Search of Leader Integrity
Studies say integrity is the most important leadership
characteristic
Also called “authentic leadership”


Individual acts with sincerity
Has a higher moral capacity to judge dilemmas
Yet, most people think business leaders lack
integrity:



73% say CEOs of large firms can’t be trusted (US)
Nearly 40% do not trust their immediate boss (UK)
Approx 50% say business wrongdoing has undermined
their trust in employers (Australia)
McShane/ Canadian OB 6e
7
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Competency Perspective Limitations
Implies a universal approach

But some competencies might not be valuable in all
situations
Alternative combinations of competencies might work
just as well

Not necessarily the same set needed
Some traits are subjective

Supports implicit leadership theory
Several competencies indicate leadership potential,
not actual leadership
McShane/ Canadian OB 6e
8
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Leader Behaviour Perspective
People-oriented behaviours
 Showing mutual trust and respect
 Concern for employee needs
 Desire to look out for employee welfare
Task-oriented behaviours
 Assign specific tasks
 Ensure employees follow rules
 Set “stretch goals” to achieve performance capacity
McShane/ Canadian OB 6e
9
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Path-Goal Leadership Styles
Directive
 Task-oriented behaviours
Supportive
 People-oriented behaviours
Participative
 Encouraging employee involvement
Achievement-oriented
 Using goal setting and positive selffulfilling prophecy
McShane/ Canadian OB 6e
10
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Path-Goal Leadership Model
Employee
Contingencies
Leader
Behaviours
•
•
•
•
Leader
Effectiveness
• Employee
motivation
• Employee
satisfaction
• Leader
acceptance
Directive
Supportive
Participative
Achievementoriented
Environmental
Contingencies
McShane/ Canadian OB 6e
11
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Path-Goal Contingencies
Employee
Contingencies
Directive Supportive Participative Achievement
Skill/Experience
low
low
high
high
Locus of Control
external
external
internal
internal
Environmental
Contingencies
Directive Supportive Participative Achievement
Task Structure
nonroutine
routine
nonroutine
?
Team Dynamics
–ve norms
low cohesion
+ve norms
?
McShane/ Canadian OB 6e
12
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Other Contingency Leader Theories
Situational Leadership Model (Hersey/Blanchard)


Effective leaders vary style with follower “readiness”
Leader styles – telling, selling, participating, and delegating
Fiedler’s Contingency Model


Leadership style is stable --based on personality
Best style depends on situational control -- leader-member
relations, task structure, position power
McShane/ Canadian OB 6e
13
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Leadership Substitutes
Contingencies that limit a leader’s influence or make
a particular leadership style unnecessary.
Examples:
 Training and experience replace task-oriented leadership
 Cohesive team replaces supportive leadership
 Self-leadership replaces achievement-oriented leadership
Evidence suggests that substitutes might help, but
don’t completely substitute for real leadership
McShane/ Canadian OB 6e
14
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Ray Young Transforms GM Brazil
Ray G. Young, the Canadian
executive who now leads General
Motors’ operations in Brazil, is making
an impact in that highly competitive
market. “He has brought a sense of
purpose to General Motors that they
didn’t seem to have before,” says
industry consultant Ricardo Durazzo.
Paul Fridman for the New York Times
McShane/ Canadian OB 6e
15
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Transformational v. Transactional Leaders
Transformational leaders
 Leading -- changing the organization
to fit environment
 Change agents
Transactional leaders
 Managing -- linking job performance to
rewards
 Ensure employees have necessary
resources
 Apply contingency leadership
Paul Fridman for the New York Times
McShane/ Canadian OB 6e
16
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Transformational v. Charismatic Leaders
Is charismatic leadership essential
for transformational leadership?
Some experts say yes, but
emerging view is that:
 Charisma is distinct from
transformational leadership
 A personal trait that might help
transform, or might just help the leader
 Charismatic leadership might have
opposite effect -- creates dependence,
not empowerment
Paul Fridman for the New York Times
McShane/ Canadian OB 6e
17
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Transformational Leadership Elements
Creating
a Strategic
Vision
Communicating
the Vision
Transformational
Leadership
Building
Commitment
McShane/ Canadian OB 6e
Modelling
the Vision
18
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Evaluating Transformational Leadership
Transformational leadership is important
 Higher employee satisfaction, performance, org
citizenship, creativity
Transformational leadership limitations
 Circular research
• Transformational leaders identified by their success
 Universal theory
• Need a contingency-oriented theory
• Recognize differences across cultures
McShane/ Canadian OB 6e
19
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Implicit Leadership Perspective
Attributing
Leadership
Implicit
Leadership
Perspective
Need for
Situational
Control
McShane/ Canadian OB 6e
Stereotyping
Leadership
20
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Ubuntu Leadership
Ubuntu is “that profound African
sense that each of us is human
through the humanity of other
human beings,” explains former
South African president Nelson
Mandela (shown here). The
ubuntu value system provides a
framework for leading others in
Africa.
©EPA Photo/EPA/ Kim Ludbrook/Corbis
McShane/ Canadian OB 6e
21
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Cultural Issues in Leadership
Societal cultural values and
practices affect leaders:


Shape leader’s values/norms
Influence decisions and actions
Some leadership styles are
universal, others differ across
cultures


©EPA Photo/EPA/ Kim Ludbrook/Corbis
McShane/ Canadian OB 6e
22
“Charismatic visionary” seems to
be universal
Participative leadership works
better in some cultures than
others
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Gender Issues in Leadership
Male and female leaders have
similar task- and people-oriented
leadership.
Participative leadership style is used
more often by female leaders.
McShane/ Canadian OB 6e
23
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Evaluating Female Leaders
Past evidence

Women rated less favourably than equivalent
male leaders due to stereotyping
Recent evidence

Women rated more favourably than men,
particularly on emerging leadership styles
(coaching, teamwork)
McShane/ Canadian OB 6e
24
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
C H A P T E R: F O U R T E E N
Leadership in
Organizational
Settings
14
McGraw-Hill Ryerson
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.