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STUDY UNIT EIGHT INFLUENCE AND LEADERSHIP

8.1 8.2

Influence and Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 3

This study unit describes the research on influence processes used by managers in organizations. Such processes range from influence tactics, the application of various sources of power, employee empowerment, and behavior modification to the many theories of leadership and its development. 8.1 INFLUENCE AND POWER 1. Kreitner (9th ed., page 496) defines influence in the work environment as any attempt by a person to change the behavior of superiors, peers, or lower-level employees. Influence may be exerted in many ways, including the use of power and the exercise of leadership. Management literature (Kipnin, Schmidt, Wilkinson, and others) describes generic influence tactics that may be used in any direction (upward to influence superiors, laterally to influence peers, and downward to influence lower-level employees). a. The following are the generic influence tactics noted by researchers: 1) 2) 3) 4) 5) 6) 7) 8) b. Consultation permits the other person(s) to participate in the decision or change. Rational persuasion tries to convince others by reliance on a detailed plan, supporting evidence, and reason. Inspirational appeals are calls to superordinate goals. They are appeals to emotions, values, or ideals. Ingratiating tactics attempt to raise the other persons self-esteem prior to a request. Coalition tactics seek the aid of others to persuade someone to agree. Pressure tactics involve intimidation, threats, and demands. Upward appeals are based on the formal or informal support of higher management. Exchange tactics entail an exchange of favors, a reminder of a past favor, or an offer of a personal sacrifice.

2.

The most commonly used influence tactics are consultation, rational persuasion, and inspirational appeals. The least commonly used are pressure tactics, upward appeals, and exchange tactics. 1) 2) 3) Research suggests that male and female managers do not differ significantly in their use of influence tactics. Upward influence methods used by employees of authoritarian managers are most likely to consist of ingratiating tactics and upward appeals. Rational persuasion is the method used most often by employees of participative managers.

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3.

Power is the ability to influence employees to do what they would not ordinarily do. It has also been defined as the ability to use people, information, and material resources to accomplish something (Morgan McCall, Jr.). Power and influence may be wielded formally or informally. a. Power sources include 1) Legitimate or position power (closely associated with formal authority) a) Human nature is such that employees tend not to completely obey someone who relies solely on legitimate authority. Moreover, managers may not have the right to direct (exert formal authority over) some people whom they need to influence. The most notable example today is the influence wielded by IT professionals.

2)

Expertise a)

3)

Referent power (derived from the leaders charisma or employees identification with the leader) a) The negative aspect of referent power is that the individuals who have it often seem prone to abuse it. A power rooted in the fear or threat of punishment.

4) 5) b.

Coercive a) Control of rewards

c. d. e.

f.

The greater the sources of power possessed by a manager, the more likely an employee will be inclined to accept his/her authority. In other words, a manager who has both formal and informal sources of power will be more influential than someone with only one source. Authority is the right to manage others. Thus, it differs from power, the ability to accomplish something. A manager may have one without the other. The dimensions of power include the ability to control others, act freely, or resist control by others. The exercise of power affects the decisions made by employees, for example, as the result of advice offered by someone with expert power. It also affects behavior, for example, as the result of a warning from someone with coercive power. Moreover, the exercise of power affects situations, for example, a change in the nature or type of resources used in operations effected by someone with any base of power. Modern management theory emphasizes employee empowerment. The question is not whether employees should be empowered but the circumstances in which it should occur. 1) 2) 3) 4) 5) 6) Individuals need to be honest, trustworthy, unselfish, and skilled. Empowerment is not synonymous with lack of control. Appropriate oversight is necessary. Employees should have adequate training, relevant information, and other necessary tools. Employees should participate fully in making important decisions. Employees should be fairly compensated. The paradox is that managers who appropriately surrender power by empowering employees actually gain power. They have an increased ability to achieve desired results.

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SU 8: Influence and Leadership

4.

Behavior modification is the management of environmental factors to encourage desirable behavior and to discourage undesirable behavior. Environmental factors include antecedents and consequences of behavior. a. Antecedents are cues that encourage but do not cause a given behavior. Managing antecedents involves eliminating barriers to good performance and replacing them with helpful aids. 1) 2) b. Barriers include unattainable objectives, poor training, confusing rules, and conflicting directions from management. Aids include challenging but attainable objectives, clear instructions, realistic plans, constructive suggestions, and acceptable work rules. Positive reinforcement provides rewards for certain responses. It focuses on desirable rather than undesirable behavior. Theorists regard positive reinforcement as the most effective approach. a) b) c) Examples are the awarding of merit-based salary bonuses or paying on a sliding scale relative to production. Continuous reinforcement rewards every occurrence of a desirable new behavior. Intermittent reinforcement provides occasional rewards for an established behavior. Variable-interval schedules of intermittent reinforcement lead to better performance. Employees are more alert because of the uncertainty involved, and performance and reward are connected. Fixed-interval schedules of reinforcement do not clearly link performance and reward.

Consequences include the following: 1)

2) 3) 4)

Negative reinforcement is the withdrawal of an existing unpleasant condition (such as a threat) when the desired behavior occurs. Extinction discourages a behavior by ignoring it (not reinforcing it). Punishment discourages a behavior by immediately following it with a negative consequence.

8.2 LEADERSHIP 1. Leadership is the act or process of influencing, inspiring, and guiding people so they will strive willingly toward the achievement of group objectives through common effort. a. Formal leadership pursues the organizations objectives, but informal leadership may pursue objectives at variance with the organizations. 1) Formal (but not informal) leaders ordinarily have formal authority and legitimate power. However, both kinds of leaders may wield any of the other types of power. Informal leaders whose objectives are the same as (different from) those of the organization are assets (liabilities).

2) b.

The classical position focused on the idea that, although authority, decision making, and responsibility may all be decentralized to some extent, leadership is a characteristic of the individuals personality and cannot be subdivided.

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c.

The traitist approach attempts to identify traits possessed by leaders. It has produced such a long list of leadership traits that, in effect, it identifies nothing. Nevertheless, a few traits do seem to have significant correlation with a leaders effectiveness. 1) Intelligence 2) Scholarship 3) Dependability 4) Social participation and interest 5) Socioeconomic status (in comparison with nonleaders) A more recent traitist approach is based on the emotional intelligence of leaders, that is, their social skills and judgment, maturity, and emotional control. These abilities can be learned, especially when a manager or employee understands that immaturity, erratic behavior, and uncontrolled negative emotions have a bad effect on the workplace. According to Daniel Goleman, a leader can acquire social capital through exhibiting the following leadership traits: 1) 2) 3) 4) Self-awareness is knowing oneself. Self-management is the ability to prevent ones mood swings from interfering with positive relationships. Social awareness is understanding the actions and emotions of others. This ability helps a person to adapt in a productive way. Relationship management is an ability possessed by a person who communicates and resolves conflict effectively. Humor and a benign approach are characteristics of people who develop good relationships.

d.

e.

Some writers have argued that men and women have different leadership traits. However, the research indicates male and female managers do not match the stereotypes (task orientation versus relationship orientation, respectively).

2.

With so little useful guidance from the leader characteristics approach, behavior-oriented researchers examined leader behavior to determine whether leaders conduct themselves in certain ways. a. Styles of leadership are emphasized in behavioral approaches. The personal background of the manager is also a determining factor, as are the personalities and backgrounds of the employees being supervised. These styles have been characterized as 1) Authoritarian. The manager dictates all decisions to the employees, so communication is downward. Moreover, tasks are clearly defined. This is considered the classical approach to leadership. Employees are not allowed to give input. Authoritarian leaders rely on threats and punishment and do not trust employees. However, such leadership can sometimes be the most effective, such as when there is limited time to make a decision or when employees do not respond to any other leadership style. Performance is on time and predictable. Democratic (participative). The leader delegates substantial authority. Employees participate in defining and assigning tasks. Communication is actively upward as well as downward. Thus, employees are more committed. Laissez faire (free rein). Employees in a group are given the authority and responsibility to make their own decisions. Communication is mostly horizontal. This style works best when employees show personal initiative, but the group also may flounder without the leaders guidance. Consultative. The manager takes the employees view into account but still makes the decisions.

2)

3)

4)

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5)

Bureaucratic. A manager manages by the book. Everything must be done according to procedure or policy. If there is no policy to cover a situation, the manager refers to the next level above himself. Bureaucratic leaders are essentially policemen rather than leaders. Bureaucratic leaders are sometimes necessary when employees are working with dangerous or highly delicate equipment or chemicals. Cash handling functions are sometimes policed by a bureaucratic leader. a) Management theoretician Max Weber argued that bureaucracy is essential in structuring governments and administrations. He viewed it as functional, efficient, and necessary for capitalism to be successful. Within the bureaucratic type there are specific rules and regulations for every goal. These rules must be followed by employees. Officials are subject to a hierarchy and fulfill their duties impersonally. Weber began by discussing how work is carried out within the bureaucratic organization. Activities for governing are official duties and are assigned by a set of rules that determine who will perform what specialized task. These are completed only by employees who have received the adequate education. In this manner, the functions become bureaucratic authority. Within the bureaucracy there exists labor hierarchy directed by more regulations. That is, there are levels of authority. Supervision by a higher official ensures that management remains orderly. Also, subordinate officials have the opportunity to appeal a decision to a higher authority.

b.

According to a model developed at Ohio State University, two behavior patterns that are consistently found in the study of leadership are the initiation of structure and consideration by the leader (production-centered versus employee-centered behavior). 1) Initiating structure behavior is directed towards accomplishing tasks. Structure includes a) Defining duties b) Establishing procedures c) Planning and organizing work Consideration behavior is the establishment of a personal relationship between the leader and the subordinate. High consideration by the leader includes a) Warmth toward the employee as a person b) Psychological support for the employee c) Helpfulness with problems in the work Both structure initiation and consideration behavior are present in all job situations. The relative amounts of each must be appropriate to the situation. For example, a) A highly structured situation (e.g., assembly-line work) may respond negatively to further structure initiated by the manager, but positively to increased consideration. A manager of R&D may find the initiation of structure much more productive than increased consideration. Creative personnel working on a disorganized project may find a better defined project plan much more satisfying than a demonstration of concern by the manager.

2)

3)

b)

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4)

The following are the four leadership styles in the Ohio State model: a) b) c) d) Low structure and consideration indicates a passive leader. Low structure and high consideration results from an emphasis on satisfying employee needs. High structure and low consideration results from a primary focus on task accomplishment. High structure and high consideration reflect a strong emphasis on both task accomplishment and satisfying employee needs.

c.

The leadership grid developed by Robert Blake and Jane Mouton is a trademarked classification scheme. Concern for production is on the horizontal axis, and concern for people is on the vertical axis. 1) 2) 3) Concern for production emphasizes output, cost control, and profit. Concern for people emphasizes friendship, aiding employees in accomplishing tasks, and addressing employee issues (e.g., compensation). Each axis has a scale of 1 to 9. Thus, the primary styles are the following: a) b) c) d) e) 1,1: Little concern for production or people (impoverished management) 1,9: Primary concern for people, little concern for production (country club management) 9,1: Primary concern for production, little concern for people (authority-compliance management) 5,5: Moderate concern for production and people to maintain status quo (middle-of-the-road management) 9,9: Great concern for production and people, trust, teamwork, and commitment (team management) i) Blake and his associates assert that the 9,9 style is best because it produces the best operating results, health outcomes, and conflict resolutions.

3.

Situational theories of leadership argue that the appropriate style depends on the situation. The emphasis is on flexibility because no one leadership style is best in every situation. a. According to Fred E. Fiedlers contingency theory, people become leaders not only because of personality attributes, but also because of various situational factors and the interaction between the leaders and the situation. 1) Thus, the right person at the right time may rise to a position of leadership if his/her personality and the needs of the situation complement each other. The same person might not become a leader in different circumstances because of failure to interact successfully with that situation. The contingency theory model has three dimensions: a) Position power is a function of the formal authority structure. It is the degree to which the position held enables a leader to evaluate, reward, punish, or promote the group members. It is independent of other sources of power, such as personality or expertise. Task structure is how clearly and carefully members responsibilities for various tasks are defined. Quality of performance is more easily controlled when tasks are clearly defined. Leader-member relations reflect the extent to which group members like and trust and are willing to follow a leader.

2)

b)

c)

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3)

4)

The least preferred coworker test is one way to assess the leadership styles of individuals. It asks them to rank coworkers on 16 contrasting traits (e.g., efficient or inefficient) from least to most preferred. For example, if the least preferred coworker is described relatively favorably, the person doing the rating is likely to be primarily interested in a personal relationship. Fiedlers research showed that leaders tend to be task-motivated or relationship-motivated. a) The task-motivated style is most effective when the situation is very favorable or very unfavorable. i) The situation is very favorable when the leaders position of power is high, tasks are well defined, and leader-member relations are good. The situation is very unfavorable when the reverse is true. In the favorable situation, a leader has little need to address relationship issues and should therefore concentrate on the work. In the unfavorable situation, the leader must emphasize close supervision.

ii)

b) 5) 6)

The relationship-motivated style is most effective in the middle, less extreme situations when favorable and unfavorable factors are mixed.

The most effective leadership style is contingent upon the degree to which the three dimensions are present in a situation. Leadership is therefore as much a responsibility of the organizations placement of leaders as it is of the leaders themselves. An organization should identify leadership situations and its managers leadership styles and engineer the job to suit the manager if necessary.

b.

According to Hersey and Blanchards situational leadership theory, the appropriate leadership style depends on the followers maturity, which is their degree of willingness to be responsible for directing their behavior. Four styles of leadership are described in a situational leadership model created by Paul Hersey and Ken Blanchard. Its dimensions are task and relationship behaviors. 1) 2) 3) 4) Selling. A selling leadership style explains decisions and provides opportunity for clarification (high task and high relationship). Telling. A telling leadership style provides specific instructions and closely supervises performance (high task and low relationship). Participating. A participating leadership style encourages the sharing of ideas and facilitates decision making (low task and high relationship). Delegating. A delegating leadership style turns over responsibility for decisions and implementation (low task and low relationship).

c.

Path-goal theory emphasizes motivation. It combines the research on initiating structure and consideration with expectancy theory. 1) Leaders should motivate employees by clarifying employees understanding of a) b) c) 2) Work goals, The relationship of achievement of those goals with rewards that matter to employees, and How the goals may be achieved.

Leaders should increase payoffs, define the path to success, remove obstacles, and increase the chances of individual satisfaction while the path is being traveled.

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3)

According to path-goal theory, two groups of contingency factors affect the relationship between leadership behavior and the outcomes of employee performance and satisfaction. a) b) Environmental factors are those beyond employees control (task structure, the formal authority system, and the work group). Subordinate factors include the employees locus of control, experience, and perceived ability.

4)

A leadership style should be chosen that complements but does not duplicate the factors in the environment and is consistent with employees characteristics. a) The directive leader lets employees know what is expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks. i) A directive style is most effective when the employees are externally controlled, tasks are ambiguous or stressful, and substantial conflict exists in the work group. Thus, a directive style is appropriate when employees do not have high perceived ability or experience.

b)

The supportive leader is friendly and shows concern for the needs of the employees. i) ii) iii) The supportive style is best when tasks are highly structured and the authority relationships are clear and bureaucratic. This approach depends on people who want to work, grow, and achieve. The supportive style may be best when tasks are unsatisfying.

c)

The participative leader consults with employees and uses their suggestions before making a decision. i) The participative style is most useful when employees believe they control their own destinies, that is, when they have an internal locus of control. Such individuals may be resentful if they are not consulted.

d)

The achievement-oriented leader is a facilitator who sets challenging goals and expects employees to perform at their highest level. i) Achievement-oriented leadership is appropriate when tasks are nonrepetitive and ambiguous and employee competence is high.

5) 4.

In contrast with Fiedlers approach, path-goal theorists believe that managers are able to adapt their styles to the situation.

A transformational leader combines initiating structure and consideration with such other behaviors as charisma. The transformational leader is able to inspire the members of the organization to aspire to, and to achieve, more than they thought was possible. a. b. Transformational leadership emphasizes vision, development of the individual, empowerment of the worker, and the challenging of traditional assumptions. Transformational leaders articulate a vision, use nontraditional thinking, encourage individual development, provide workers with regular feedback, use participative decision-making, and promote a cooperative and trusting work environment.

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c. d.

The transformational leader normally has charisma, is inspirational, provides intellectual stimulation to workers, and gives individualized consideration. A transactional leader emphasizes monitoring of employees so that they adhere to standards. Thus, the transactional leader ensures that expectations are met, but the transformational leader motivates employees to go beyond expectations. They have an instinctive desire to serve others and must therefore consciously decide to become leaders. They clearly define a vision (goals). They are trusted by their followers. They listen first. They accept people, if not their performance. They have intuitive foresight that allows them to make sound judgments. They believe that every problem begins inside themselves. Thus, personal development is their focus.

5.

Robert Greenleafs philosophy of servant leaders is founded on the following principles: a. b. c. d. e. f. g.

6.

Mentoring is systematic development of leadership by providing career counseling and social nurturing. According to Abraham Zalegnick, it requires intensive tutoring, coaching, and guidance. a. Some organizations have formal mentoring programs that assign mentors to junior employees. However, some research indicates that a mentoring arrangement that occurs informally and voluntarily may have better results. According to Kathy Krams research, mentoring serves career and psychosocial functions. 1) 2) c. Career functions include sponsorship, visibility, coaching, protection, and assigning challenges. Psychosocial functions include role modeling, acceptance, confirmation, counseling, and friendship.

b.

Mentors also may benefit from intrinsic pleasure in helping others to succeed or from gaining power by transferring values and skills to the people they mentor.

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