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Leadership in Organisational Settings
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New Zealand Post CEO John Allen
New Zealand Post CEO John Allen is described as an effective leader.
He energetically supports and communicates an appealing ‘customer-
centric’ vision of the company’s future and anchors his decisions and
actions around a set of core values aligned with the company.
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Leadership Defined
Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organisations of which they are members.
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Shared Leadership
The view that leadership is broadly distributed rather than assigned to one person.
Employees are leaders when they champion change in the company or team.
Shared leadership calls for: Formal leaders willing to delegate power Collaborative culture – employees support each other Employee ability to influence through persuasion
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LeadershipLeadership
perspectivesperspectives
Competency Competency perspectiveperspective
Contingency Contingency perspectiveperspective
Implicit Implicit leadership leadership perspectiveperspective
Transformational Transformational perspectiveperspective
Perspectives of Leadership
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Behavioural Behavioural perspectiveperspective
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Competency Perspective
Competencies – personal characteristics that lead to superior performance in a leadership role (eg. skills, knowledge, values)
Early research – very few ‘traits’ predicted effective leadership
Emerging view – several competencies now identified as key influences on leadership potential and of effective leaders
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Self-conceptSelf-concept
DriveDrive
• Positive self-evaluation• High self-esteem and self-efficacy• Internal locus of control
• Inner motivation to pursue goals• Inquisitiveness, action-oriented
IntegrityIntegrity• Truthfulness• Consistency in words and actions
PersonalityPersonality• Extroversion, conscientiousness
(and other traits)
Eight Leadership Competencies
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Cognitive/Cognitive/practical practical
intelligenceintelligence
• Above average cognitive ability• Able to solve real-world problems
Knowledge ofKnowledge ofthe businessthe business
• Understand external environment• Aid intuitive decision making
Eight Leadership Competencies (cont.)
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Leadership Leadership motivationmotivation
• High need for socialised power to achieve organisational goals
Emotional Emotional intelligenceintelligence
• Perceiving, assimilating, understanding, and regulating emotions
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Competency Perspective Limitations
1. Implies a universal approach
2. Alternative combinations of competencies might work just as well
3. Assumes leadership is within the person• But leadership is also about relations with followers
4. Competencies refer to leadership potential, not performance
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Leader Behaviour Perspective
People-oriented behaviours• Showing mutual trust and respect • Concern for employee needs• Looks out for employee wellbeing
Task-oriented behaviours• Assign specific tasks• Ensure employees follow rules• Set ‘stretch goals’ to achieve performance capacity
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Leader Behaviour Perspective Limitations
People-task categories mask subcategories of leader behaviour that may be distinct
Assumes best leaders display a high level of both people and task styles• But best style seems to depend on the situation
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Striving to Become the Starbucksof Sushi
Award-winning Singaporean
entrepreneur Douglas Foo
demonstrates plenty of
achievement-oriented leadership
by challenging staff to make Sakae
Sushi the Starbucks of sushi. He
also demonstrates supportive
leadership by promoting family
values and treating employees with
respect.
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Douglas Foo
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Path-Goal Leadership
Originated with expectancy theory of motivation • Paths = employee expectancies • Goals = employee performance
States that effective leaders ensure that employees who perform their jobs well receive more valued rewards than those who perform poorly
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Douglas Foo
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Path-Goal Leadership Styles
Directive• Provide psychological structure to jobs• Task-oriented behaviours
Supportive• Provide psychological support• People-oriented behaviours
Participative• Encourage/facilitate employee involvement
Achievement-oriented• Encourage peak performance through goal setting and
positive self-fulfilling prophecy
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Path-Goal Leadership Model
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EmployeeEmployeecontingenciescontingencies
EmployeeEmployeecontingenciescontingencies
EnvironmentalEnvironmentalcontingenciescontingenciesEnvironmentalEnvironmentalcontingenciescontingencies
LeaderLeaderbehavioursbehaviours
LeaderLeaderbehavioursbehaviours
• Directive
• Supportive
• Participative
• Achievement-oriented
• Directive
• Supportive
• Participative
• Achievement-oriented
Leader Leader effectivenesseffectiveness
Leader Leader effectivenesseffectiveness
• Employee motivation
• Employee satisfaction
• Acceptance of leader
• Employee motivation
• Employee satisfaction
• Acceptance of leader
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Directive Supportive Participative AchievementEmployeeContingencies
Path-Goal Contingencies
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Skill/experience low low high high
Locus of control external external internal internal
Task structure nonroutine routine nonroutine ?
Team dynamics –ve norms low cohesion +ve norms ?
EnvironmentalContingencies Directive Supportive Participative Achievement
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Other Contingency Leader Theories
Situational Leadership Model• Effective leaders vary style with follower ‘readiness’• Leader styles – telling, selling, participating, and
delegating• Popular model, but lacks research support
Fiedler’s Contingency Model• Leadership style is stable – based on personality• Best style depends on situational control• Theory has problems, but uniquely points out
inflexibility of leadership style
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Leadership Substitutes
Contingencies that limit a leader’s influence or make a particular leadership style unnecessary• eg. training and experience replace task-oriented
leadership
Research evidence: substitutes help, but don’t completely substitute for real leadership
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Transformational Leadership at P&G
A. G. Lafley, CEO of Procter &
Gamble, practises
transformational leadership
without using charisma. By
forming and communicating a
clear vision and modelling that
vision, he has transformed the
consumer goods company.
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A. G. Lafley
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Transformational vs. Transactional Leaders
Transformational leaders• Leading – changing the organisation to fit
the environment• Change agents
Transactional leaders• Confusing definitions, but originally about
seeking employee compliance through rewards, punishment, and negotiation
Managing – achieving current objectives more efficiently • Link job performance to rewards• Provide staff with necessary resources• Relates to contingency leadership theories
(eg. path-goal)
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A. G. Lafley
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Transformational v. Charismatic Leaders
Some leadership models say charismatic leadership is essential for transformational leadership
Emerging view – charisma differs from transformational leadership
Charisma is a personal trait that provides referent power• Doesn’t necessarily attempt to
change the organisation
Transformational leadership is a set of behaviours to bring about change
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A. G. Lafley
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Transformational Leadership Model
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Developa strategic
vision
Communicate the vision
Model the vision
Build commitment to the vision
Elements of
transformational
leadership
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Transformational Leadership Elements
Create a strategic vision• Image of company’s attractive
future• Motivates and bonds employees• Leader champions the vision
Communicate the vision• Frame message around a grand
purpose• Shared mental model of the future• Use symbols, metaphors, stories
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Developa strategic
vision
Communicate the vision
Elements of transformational
leadership
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Transformational Leadership Elements (cont.)
Model the vision• Walk the talk• Symbolise/demonstrate the
vision through behaviour• Employees trust leader more
Build commitment to the vision• Increased through communicating
and modelling the vision• Increased through employee involvement in
shaping the shared vision
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Developa strategic
vision
Communicate the vision
Model the vision
Build commitment to the vision
Elements of transformational
leadership
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Evaluating Transformational Leadership
Transformational leadership is important• Higher employee satisfaction, performance,
organisational citizenship, creativity
Transformational leadership limitations• Some models have circular logic
- Defines transformational leaders by their success rather than their behaviour (result: no predictive value)
• Universal theory- Need a contingency-oriented theory- Recognise differences across cultures
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Implicit Leadership Perspective
Follower perceptions of characteristics of effective leaders:
1. Leadership prototypes• Preconceived image of effective leader, used to
evaluate leader effectiveness
2. Romance of leadership effect• Amplify effect of leaders on organisational results• Fundamental attribution error• Need for situational control
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Cultural Issues in Leadership
Societal cultural values and practices affect leaders• Shape leaders’ values/norms• Influence decisions and actions• Shape follower prototype of effective leaders
Some leadership styles are universal, others differ across cultures• ‘Charismatic visionary’ seems to be universal• Participative leadership works better in some
cultures than others
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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
Evaluating female leaders• Still receive negative evaluations as leaders due to
prototypes and gender stereotypes• But evidence that they are good at emerging
leadership styles (coaching, teamwork)
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Leadership in Organisational Settings
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