Subject: Organization and Management

Topic: Chapter 6 – Leadership

Leadership
 the process of influencing others to achieve group or organizational goals.

Managers– focus on productivity and efficiency

Leader – focus on vision, mission, goals and objectives.

1.2 Substitute for Leadership: Do Leaders Always Matter?

Leadership substitute
 subordinate, task organizational characteristics that make leaders redundant or
unnecessary.
Leadership neutralizers
 subordinate task or organizational characteristics than can interface with leader’s
actions or make it impossible for a leader to influence followers’ performance.

Who Leaders Are and What They Do

2.1 Leadership trait

Trait Theory
 a leadership theory that holds that effective leaders possess a similar set of trait or
characteristic.

Trait
 relatively stable characteristics, such as abilities, psychological motives, or consistent
patterns of behavior.

Leadership Trait

1. Desire to lead
 They want to be in charge and think about ways to influence or convince others about
what should not to be done.

2. Self-confidence
 believing in one’s abilities, also distinguish leaders from nonleaders.
 leaders are more decisive and assertive and more likely to gain other’s.

3. Emotional Stability
 even things go wrong, they remain even-tempered and consistent in their outlook and in
the way they treat other.

4. Cognitive abilities
 they have the capacity to analyze large amounts of seemingly unrelated, complex
information and see patterns, opportunities, or threats where others might not see them.
5. Knowledge of the business
 understand the key technological decisions and concern facing their companies.
6. Drive
 refers to high levels of effort and characterized by achievement, motivation, initiative,
energy and tenacity.

Leadership Behavior

1. Job-centered leadership
 concern for production
2. Employee-centered leadership
 concern for people
Initiating structure
 the degree to which a leader structures the roles of followers by setting goals, giving
directions, setting deadlines, and assigning tasks.

Consideration
 the extent to which a leader is friendly, approachable, and supportive and shows concern
for employees.

What Motivation Is
Motivation
 the set of forces that initiates, directs, and makes people persist in their effort to
accomplish a goal.

Components of Motivation

1. Initiation of effort
 is concerned with the choices that people make about how much effort to put forth in
their jobs.
2. Direction of effort
 is concerned with the choices that people make in deciding where to put forth effort in
their job.
3. Persistence of effort
 is concerned with the choices that people make about how long they will put forth effort
in their jobs before reducing or eliminating those efforts.

Extrinsic and Intrinsic Rewards

Extrinsic
 reward that is tangible, visible to others, an given to employees contingent on the
performance of specific tasks or behaviors.
Four Basic Behavior:
1. Join the organization
2. Regularly attend their jobs
3. Perform their jobs well
4. Stay with the organization

Intrinsic
 a natural reward associated with performing a task or an activity for its own sake.
 An intrinsic rewards include a sense of accomplishment or achievement, a feeling of
responsibility, the chance to learn something, challenging, and engaging task.

Both extrinsic and intrinsic rewards are important.

 most important rewards were good benefits and health insurance, job security, a week or
more of vacation. (all extrinsic rewards)
 Interesting work, the opportunity to learn new skills, and independent work situation.
(all intrinsic rewards)

HOW PERCEPTIONS AND EXPECTATIONS AFFECT MOTIVATION

1. Equity Theory
 A theory that states that people will be motivated when they are being treated fairly.

Components of Equity Theory

1. Inputs
 the contribution employees make to the organization.
2. Outcomes
 the rewards employees receive for their contribution to the organization.
3. Referents
 others with whom people compare themselves to determine if they have been treated
fairly.
The comparison of outcomes with inputs is called:

Outcome/input (O/I) ratio

 an employee’s perception of how the rewards received from an organization compare with
the employee’s contribution to that organization.

Two Forms of Inequity

Under-reward
 a form inequity in which you are getting fewer outcomes relative to inputs than your
referent is getting.
Over-reward
 a form of inequity in which you are getting more outcomes relative to inputs than your
referent.

2. Expectancy Theory (mental processes)

 the theory that people will be motivated to the extent to which they believe that their efforts
will lead to good performance, that good performance will be rewarded, and that they will
offered attractive rewards.

Components of Expectancy Theory

a. Valence
 the attractiveness or desirability of a reward or outcome.
same reward or outcome – a promotion – will be highly attractive to some people
b. Expectancy
 the perceived relationship between effort and performance.
 When expectancies are strong, employees believe that their hard work and efforts will
result in good performance, so they work harder.
c. Instrumentality
 the perceived relationship between performance and rewards.
 When instrumentality is strong, employees believe that improved performance will lead to
better and more rewards, so they choose to work harder.

3. Reinforcement Theory
 the theory that behavior is a function of its consequences, that behaviors followed by
positive consequences will occur more frequently, and that behaviors followed by negative
consequences, or not followed by positive consequences, will occur less frequently.

Reinforcement
 the process of changing behavior by changing the consequences that follow behavior.

Two Parts of Reinforcement

a. Reinforcement contingencies
 cause-and-effect relationship between the performance of specific behavior and specific
consequences.
b. Schedule of reinforcement
 rules that specify which behaviors will be reinforced, which consequences will follow those
behaviors, and the schedule by which those consequences will be delivered.
 In this schedule, the target behavior always attracts a reward.

Components of Reinforcement Theory

1. Positive Reinforcement
 Reinforcement that strengthens behavior by following behaviors with desirable
consequences.
2. Negative Reinforcement (avoidance learning)
 reinforcement that strengthens consequence by withholding an unpleasant
consequences when employees perform a specific behavior.
3. Punishment
 reinforcement that weakens behavior by following behaviors with undesirable
consequence.
4. Extinction
 reinforcement in which a positive consequence is no longer allowed to follow a previously
reinforced behavior, thus weakening the behavior.
 means to stop someone from performing a learned behavior.

4. Goal-Setting Theory
 the theory that people will be motivated to the extent to which they accept specific,
challenging goals and receive feedback that indicates their progress toward goal
achievement.
Goal
 a target, an objective, or a result that someone tries to accomplish.

Components of Goal-Setting Theory

1. Goal Specificity (specific)

 the extent to which goals are detailed, exact, and unambiguous.
2. Goal Difficulty
 the extent to which a goal is hard or challenging to accomplish.
3. Goal Acceptance
 the extent to which people consciously understand and agree to goals.
4. Performance Feedback
 information about the quality or quantity of past performance that indicates whether
progress is being made toward the accomplishment of a goal.

SITUATIONAL APPROACHES TO LEADERSHIP

1. Contingency theory
 a leadership theory that in order to maximize work group performance, leaders must be
matched to the situation that best fits their leadership style.

Leadership Style
 the way a leader generally behaves toward followers.
Situational Favorableness
 the degree to which a particular situation either permits or denies a leader the chance
to influence the behavior of group members.
Unfavorable situation
 leaders have little or no success influencing the people they are trying to lead.

Three situational factors determine the favorability of a situation:

1. Leader-member relations
 the degree to which followers respect, trust, and like their leaders.
2. Task Structure
 the degree to which the requirements of a subordinate’s tasks are clearly specified.
 With highly structured tasks, employees have clear job responsibilities, goals, and
procedures.
3. Position Power
 the degree to which leaders are able to hire, fire, reward, and punish workers.

2. Adapting Leader Behavior: Path-Goal Theory

Path-Goal Theory
 a leadership theory that state that leaders can increase subordinate satisfaction and
performance by clarifying and clearing the paths to goals and by increasing the number
and kinds of rewards available for goal attainment.
Four Leadership style in Path-Goal theory:

1. Directive leadership
 a leadership style in which the leaders lets employees know precisely what is expected
of them, gives them specific guidelines for performing tasks, schedules work, sets
standards of performance, and make sure that people follow standard rules and
regulations.
2. Supportive Leadership
 a leadership style in which the leader is friendly and approachable to employees, shows
concern for employees and their welfare, treats them as equals, and creates a friendly
climate.
3. Participative leadership
 a leadership style in which the leader consults employees for their suggestion and input
before making decisions.
4. Achievement-oriented leadership
 a leadership style in which the leader sets challenging goals, has high expectations of
employees, and display confidence that employees will assume responsibility and put forth
extraordinary effort.

3. Adapting Leader Behavior: Hersey and Blachard’s Situational Leadership

Situational Theory
 a leadership theory that states that leaders need to adjust their leadership styles to
match their follower’s readiness.

Worker Readiness
 the ability and willingness to take responsibility for directing one’s behavior at work.

4 Leadership Style

1. Telling leadership style

 is based on one-way communication in which followers are told what, how, when, and
where to do particular tasks.
2. Selling leadership style
 involves two-way communication and psychological support to encourage followers to
own, or buy into, particular ways of doing things.
3. Participating style
 is based on two-way communication and shared decision making.
 might solicit ideas from a subordinate about a project and let the subordinate get
started, but ask to review progress along the way.
4. Delegating style
 is used when leaders basically let workers run their own decision.

4. Adapting Leader Behavior: Normative Decision Theory

Normative Decision theory

 a theory that suggest how leaders can determine an appropriate amount of
employee participation when making decision.

Decision Style
1. Autocratic decision
 in which leaders make decision by themselves.
2. Consultative decision
 in which leaders share problems with subordinate but still make the decisions
themselves.
3. Group Decision
 in which the leader share the problems with subordinates and then have the group
make the decision.