Organisational Leadership Assessment 1 Part I
Order ID | 1950802919 |
Subject | Management |
Topic | Organisational Leadership Assessment 1 Part I |
Type | Essay |
Writer level | College |
Style | Harvard |
Sources / references | 10 |
Language | English(U.S.) |
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Martin Winterkorn, former CEO of Volkswagen; Martin Shkreli, founder and former chief executive of Turing Pharmaceuticals; Elizabeth Holmes, founder of Theranos CHAPTER 3 Contingency Approaches to Leadership Chapter Outline The Contingency Approach Hersey and Blanchard’s Situational Theory Fiedler’s Contingency Model Path–Goal Theory The Vroom–Jago Contingency Model Substitutes for Leadership In the Lead Laura Smith, Yola Sergio Marchionne, Fiat Chrysler Automobiles Alan Robbins, Plastic Lumber Company Art Weinstein, Whitlock Manufacturing Daniel Snyder, Washington Redskins Leader’s Self-Insight T–P Leadership Questionnaire: An Assessment of Style Are You Ready? Measuring Substitutes for Leadership Leader’s Bookshelf Shackleton’s Way: Leadership Lessons from the Great Antarctic Explorer Leadership at Work Task versus Relationship Role Play Leadership Development: Cases for Analysis Alvis Corporation An Impossible Dream? Summary and Interpretation The most important point in this chapter is that situational variables affect leadership outcomes. The contingency approaches were developed to systematically address the relationship between a leader and the organization. The contingency approaches focus on how the components of leadership style, subordinate characteristics, and situational elements affect one another. Hersey and Blanchard’s situational theory, Fiedler’s contingency model, the path–goal theory, the Vroom–Jago model, and the substitutes-for-leadership concept each examine how different situations call for different styles of leadership behavior. Hersey and Blanchard contend that leaders can adjust their task or relationship style to accommodate the development level of their subordinates. According to Fiedler, leaders can determine whether their leadership style is suitable for the situation. Task-oriented leaders tend to do better in very favorable or very unfavorable situations, whereas relationship-oriented leaders do best in situations of intermediate favorability. The path–goal theory states that leaders can use a style that appropriately clarifies the path to desired rewards. The Vroom–Jago model indicates that leaders can choose a participative decision style based on contingencies such as quality requirement, commitment requirement, or the leader’s knowledge and expertise. In addition, concern for time (the need for a fast decision) versus concern for follower development is taken into account. Finally, the substitutes-for-leadership concept recommends that leaders adjust their style to provide resources not otherwise provided in the organizational situation. By discerning the characteristics of tasks, subordinates, and organizations, leaders can determine the style that increases the likelihood of successful leadership outcomes. Therefore, effective leadership depends partly on developing diagnostic skills and being flexible in your leadership behavior. Your Leadership Challenge After studying this chapter, you should be able to:
Key Terms and Concepts Contingency: a theory meaning one thing depends on other things. Contingency approaches: approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively.
Situational theory: Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior. Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation. Path–goal theory: a contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards. Vroom–Jago contingency model: a contingency model that focuses on varying degrees of participative leadership and how each level of participation influences the quality and accountability of decisions. Substitute: a situational variable that makes leadership unnecessary or redundant. Neutralizer: a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors. IntroductionSteve Ballmer is a forceful leader. Satya Nadella, who became the CEO at Microsoft after Ballmer resigned the position, is a quiet, humble leader. Although their styles are different, both are successful leaders. Discuss how two leaders who are so different can both lead the same company successfully. Consider how the situation and the company’s needs differed between the time periods that each CEO led the company. Annotated Lecture/OutlineLeadership Challenge #1: Understand how leadership is often contingent on people and situations. 3-1. The Contingency Approach Because researchers couldn’t find universal leader traits or behaviors that were always effective, researchers began to look at the situation around the leaders. They examined the relationship between a leader’s effectiveness and the situation.
Contingency is a theory meaning one thing depends on other things. Contingency approaches are approaches that seek to delineate the characteristics of situations and followers and examine the leadership styles that can be used effectively. Exhibit 3.1: Comparing the Universalistic and Contingency Approaches to Leadership Teaching Tip: Use Exhibit 3.1 to compare the universalistic approaches used in Chapter 2 to the contingency approaches used in this chapter. Exhibit 3.2 illustrates the four possible behavior approaches:
Exhibit 3.2: Meta-Categories of Leader Behavior and Four Leader Styles Teaching Tip: Use Exhibit 3.2 to discuss the four leader styles. Identify situations in which each style could be the most beneficial. Although most leaders are better at tasks or better at relationships, experts suggest that a balanced approach is better for long-term results. New Leader Action Memo: Complete the questionnaire in Leader’s Self-Insight 3.1 to assess your relative emphasis on two important categories of leadership behavior.
Discussion Question #2: Do you think leadership style is fixed and unchangeable, or can leaders be flexible and adaptable with respect to style? Why? Leadership Challenge #2: Apply Hersey and Blanchard’s situational theory of leader style to the level of follower development. 3-2. Hersey and Blanchard’s Situational Theory The situational theory is Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior. 3-2a. Leader Style According to the situational theory, a leader can adopt one of four leadership styles, based on a combination of relationship (concern for people) and task (concern for production) behavior. The appropriate style depends on the development level of followers, as shown in Exhibit 3.3. Exhibit 3.3: The Situational Model of Leadership Teaching Tip: Use Exhibit 3.3 to discuss the four styles in the situational theory. Identify situations in which each style would be the most beneficial. The situational theory has four leader styles:
3-2b. Follower Development Contingency The important contingency in Hersey and Blanchard’s situational theory is the follower’s development level. The leader determines a follower’s development and selects the appropriate leader style. Four development levels are recognized:
New Leader Action Memo: As a leader, you can tell followers how to perform their tasks if they have few skills, little experience, or low self-confidence. If followers have a moderate degree of skill and show enthusiasm and willingness to learn, provide direction but seek followers’ input and explain your decisions. New Leader Action Memo: As a leader, you can act as a resource to provide advice and guidance when followers have a high level of skill, experience, and responsibility. Delegate responsibility for decisions and their implementation to followers who have very high levels of skill and positive attitudes. In the Lead: Laura Smith, Yola Discuss the development level of Smith’s employees and the leadership style that she should have used. Could this level be generalized to all similar jobs, or should each follower relationship be individualized?New Leader Action Memo: Answer the questions in Leader’s Self-Insight 3.2 to determine your own development level and the style of leadership that would be most appropriate for you as a follower. Discussion Question #5: If you were a first-level supervisor of a team of telemarketers, how would you go about assessing the development level of your subordinates? Do you think most leaders can easily shift their leadership style to suit the development level of followers? Leadership Challenge #3: Apply Fiedler’s contingency model to key relationships among leader style, situational favorability, and group task performance. 3-3. Fiedler’s Contingency Model Fiedler’s contingency model is a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation. 3-3a. Leadership Style The cornerstone of Fiedler’s theory is the extent to which the leader has a relationship-oriented style or a task-oriented style. Leadership style was measured with a questionnaire known as the least preferred coworker (LPC) scale. The adjectives the leader chooses to describe the LPC determine if the leader is task-oriented or relationship-oriented. 3-3b. Situation Fiedler’s model presents the leadership situation in terms of three key elements that can be either favorable or unfavorable to a leader:
3-3c. Contingency Theory Task-oriented leaders are more effective when the situation is either highly favorable or highly unfavorable. Relationship-oriented leaders are more effective in situations of moderate favorability. Exhibit 3.4: Fiedler’s Classification: How Leader Style Fits the Situation Teaching Tip: Use Exhibit 3.4 to match leadership styles to types of situations. Ask students for specific examples from their experience. In the Lead: Sergio Marchionne, Fiat Chrysler Automobiles Discuss how the situation called for Marchionne’s leadership style. How would a relationship-oriented leader deal with the situation? A leader needs to know two things to use Fiedler’s contingency theory:
New Leader Action Memo: As a leader, you can effectively use a task-oriented style when the organizational situation is either highly unfavorable or highly favorable to you as a leader. Use a relationship-oriented style in situations of moderate favorability because human relations skills can create a positive atmosphere. Discussion Question #1: Consider Fiedler’s theory as illustrated in Exhibit 3.4. How often do you think very favorable, intermediate, or very unfavorable situations occur to leaders in real life? Discuss. Medium LPC leaders may be more effective than either high or low LPC leaders in a majority of situations. The major impact of Fiedler’s model may have been to increase the importance of situational factors. Leadership Challenge #4: Explain the path–goal theory of leadership.
3-4. Path–Goal Theory The path–goal theory is a contingency approach to leadership in which the leader’s responsibility is to increase subordinates’ motivation by clarifying the behaviors necessary for task accomplishment and rewards. Exhibit 3.5: Leader Roles in the Path–Goal Model Teaching Tip: Use Exhibit 3.5 to discuss the definition of the path–goal theory. The path–goal model consists of three sets of contingencies:
New Leader Action Memo: As a leader, you can increase follower motivation, satisfaction, and performance by adopting a leadership behavior that will clarify the follower’s path to receiving available rewards or increase the availability of rewards the follower desires. 3-4a. Leader Behavior The path–goal theory suggests a fourfold classification of leader behaviors:
Every leader is able to adopt one of the leader behaviors, depending on the situation. In the Lead: Alan Robbins, Plastic Lumber Company Discuss the similarities between the approach and results at Plastic Lumber Company and Yola. Consider This! Discuss how the phrase “too much of a good thing” is relevant in the companies the “In the Lead” features describe.
3-4b. Situational Contingencies The path–goal theory has two important situational contingencies:
3-4c. Use of Rewards The leader either helps the subordinate acquire skills and confidence to perform tasks and achieve available rewards or develops new rewards for subordinates. Exhibit 3.6: Path–Goal Situations and Preferred Leader Behaviors Teaching Tip: Use Exhibit 3.6 to discuss the best actions a leader can take in certain types of situations. Discussion Question #4: Compare Fiedler’s contingency model with the path–goal theory. What are the similarities and differences? Which do you prefer? Discussion Question #6: Think back to teachers you have had, and identify one each who fits a supportive style, directive style, participative style, and achievement-oriented style according to the path–goal theory. Which style did you find most effective? Why? Leadership Challenge #5: Use the Vroom–Jago model to identify the correct amount of follower participation in specific decision situations. 3-5. The Vroom–Jago Contingency Model The Vroom–Jago contingency model is a contingency model that focuses on varying degrees of participative leadership and how each level of participation influences the quality and accountability of decisions. The model has three major components:
3-5a. Leader Participation Styles The model has five levels, which are based on how much subordinates participate in decision making, as shown in Exhibit 3.7:
Exhibit 3.7: Five Leader Decision Styles Teaching Tip: Use Exhibit 3.7 to discuss the continuum of leader decision styles and how a style is selected. 3-5b. Diagnostic Questions
Seven diagnostic questions in the following areas can determine how much subordinates should participate in making a decision:
3-5c. Selecting a Decision Style Time constraints and the opportunity for follower development can also be used to select a decision-making style. Exhibit 3.8: Timesaving-Based Model for Determining an Appropriate Decision-Making Style—Group Problems Teaching Tip: Use Exhibit 3.8 to discuss a time-based model. Exhibit 3.9: Employee Development-Based Model for Determining an Appropriate Decision-Making Style—Group Problems Teaching Tip: Use Exhibit 3.9 to discuss a model based on the importance of involving followers in decisions. New Leader Action Memo: As a leader, you can use the Vroom–Jago model to determine the appropriate amount of follower participation to use in making a decision. You can follow the time-based guidelines when time is of the essence, but using development-based guidelines when cultivating followers’ decision-making skills is also important. Leaders can quickly learn to use the model to adapt their styles to fit the situation. A computer-based program allows greater complexity and precision in the Vroom–Jago model and incorporates the value of time and follower development as situational factors. In the Lead: Art Weinstein, Whitlock Manufacturing Discuss the factors that could be used in the timesaving-based model or the employee development-based model. What determined the decision-making style Weinstein chose? Discussion Question #7: Do you think leaders should decide on a participative style based on the most efficient way to reach the decision? Should leaders sometimes let people participate for other reasons? Leadership Challenge #6: Know how to use the power of situational variables to substitute for or neutralize the need for leadership. 3-6. Substitutes for Leadership In some situations, a leader is not needed to make a decision. A substitute is a situational variable that makes leadership unnecessary or redundant. Exhibit 3.10: Substitutes and Neutralizers for Leadership Teaching Tip: Use Exhibit 3.10 to discuss several substitutes and how they could be applied. Discussion Question #3: Consider the leadership position of the managing partner in a law firm. What task, subordinate, and organizational factors might serve as substitutes for leadership in this situation? In the Lead: Daniel Snyder, Washington Redskins Discuss how substitutes or neutralizers might have applied to Snyder and the Washington Redskins. A neutralizer is a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors. Neutralizers are also identified in Exhibit 3.10. New Leader Action Memo: As a leader, you can avoid leadership overkill. Adopt a style that is complementary to the organizational situation to ensure that both task needs and people needs are met. Several situational variables are shown in Exhibit 3.10:
New Leader Action Memo: Measure how the task characteristics of your job or a job you’ve held in the past might act as substitutes for leadership by answering the questions in Leader’s Self-Insight 3.3. New Leader Action Memo: As a leader, you can use a people-oriented style when tasks are highly structured and followers are bound by formal rules and procedures. You can adopt a task-oriented style if group cohesiveness and followers’ intrinsic job satisfaction meet their social and emotional needs. Substitutes can save time and money for a company in some situations. New Leader Action Memo: As a leader, you can provide minimal task direction and personal support to highly trained employees; followers’ professionalism and intrinsic satisfaction substitute for both task- and people-oriented leadership. Discussion Question #8: Consider the situational characteristics of group cohesiveness, organizational formalization, and physical separation. How might each of these substitute for or neutralize task-oriented or people-oriented leadership? Explain. Discussion Questions
Students’ answers will differ. Some of them may say that highly favorable and highly unfavorable situations occur less often than intermediate situations. Highly unfavorable refers to a situation that requires a turnaround, and most situations are not that critical. Highly favorable situations last only a short time in a fast changing world. For most situations, people-oriented leadership is appropriate. Most of the world revolves around the mean (average) of leader–member relations, task structure, and position power. Relationship-oriented leaders are more effective in situations of moderate favorability because human relations skills are important in achieving high group performance. Task-oriented leaders excel in favorable situations because everyone gets along, and the leader has all the power. If the situation is highly unfavorable to the leader, structure and task direction are needed.
Students’ answers will differ. However, they could include the following points:
Thus, the weight of the evidence is that leadership style can be flexible.
Students’ answers will differ. Some of them may say that variables such as formalization, inflexibility, and physical separation would not be typical of a law firm. Task characteristics will not be highly structured, but subordinates will get automatic feedback on performance, such as winning or losing a case, a substitute for task-oriented leadership. A law practice will be intrinsically satisfying, a substitute for people-oriented leadership. The group characteristics of professionalism and experience will substitute for task-oriented leadership and to some extent people-oriented leadership. Some professions, like those in the legal arena, police themselves through peer review to assure that professional and ethical standards are met. The senior partner will need to provide only nominal leadership and concentrate on personal clients.
Both Fiedler’s contingency model and path–goal theory consider the situation. However, Fiedler assumes that task-oriented or relationship-oriented leaders should match the favorability of the situations and the path–goal theory proposes that leaders change their behaviors to match the situation. The path–goal theory is easier to follow because there are four types of leader behavior, not personality traits, which every leader can adopt, depending on the situation—supportive leadership, directive leadership, participative leadership, and achievement-oriented leadership. Some students will prefer the path–goal theory because they will be of an opinion that leaders can use different styles as needed.
Students’ answers will differ. The development level of telemarketers depends on their degree of education and skills, experience, self-confidence, and work attitudes. A supervisor could assess these elements during the interview and hiring process. Students should base their answers on Hersey and Blanchard’s situational theory. They should give justification for using a directing, coaching, supporting, or delegating leader style. They should also consider the follower development level—low development contingency, moderate development contingency, high development contingency, and very high development contingency. Leaders are not able to easily shift their leadership styles, but they can do it as workers become more self-sufficient.
Students’ answers will differ. However, they should keep the following points in mind:
Students’ answers will differ. It depends on whether there is a need for a quick decision or whether follower development is a priority. An autocratic style saves time without reducing decision quality or acceptance. In today’s organizations, where knowledge sharing and participation are critical to success, leaders are placing emphasis on follower development. Researchers have developed a computer-based program that allows for greater complexity and precision in the Vroom–Jago model and incorporates the value of time and follower development as situational factors rather than portraying them in separate decision trees.
Students’ answers will differ. If group cohesiveness meets employee social needs, people-oriented leadership is not needed. Group members behave alike according to social and group norms. For example, a dress code is understood (e.g., wearing jeans on Friday or wearing a suit and tie) and no one needs to remind employees. The leader is then free to concentrate on task-oriented behavior. If organizational formalization is in place, task-oriented leadership is substituted. Employees are well aware of the policies and rules and do not need to be told. The leader is free to concentrate on people-oriented behavior. If the leader is physically separated from subordinates, his ability to support and direct is neutralized. Teaching Tools and Exercises
Sir Ernest Shackleton and a crew of 27 attempted to cross the continent of Antarctica on foot. Unfortunately, his boat, the Endurance, became stuck in ice and sank before touching land. Shackleton kept his entire crew alive until they could be rescued. Several valuable lessons for leaders can be learned from this experience:
In small groups, think of a group or team to which you currently belong or of which you have been a member. What type of leadership style did the leader of this group appear to exhibit? Give some specific examples of the type of leadership behavior used. Evaluate the leadership style. Was it appropriate for the group? Why or why not? What would you have done differently? Why?
Leadership at Work activities are end-of-chapter text exercises that are also included in MindTap as gradable assignments. Students’ answers will vary. Refer to Exhibit 3.2. High task–low relationship leaders use an authoritative style. Students’ suggestions could include planning short-term activities; clarifying tasks, objectives, and expectations; and monitoring operations and performance. Low task–high relationship leaders use a participative or supportive style. Students’ suggestions could include providing support and encouragement, developing followers’ skill and confidence, and consulting followers when making decisions and solving problems. In Class: The instructor can ask students to volunteer to play the roles of the distribution manager and the drivers. A few students can take turns role-playing the distribution manager in front of the class to show how they would handle the drivers as task- and relationship-oriented leaders. The instructor can ask other students for feedback on the leader’s effectiveness and on which approach seems more effective for this situation, and why. Leadership Development: Cases for Analysis Alvis Corporation Synopsis Kevin McCarthy is the manager of a production department in Alvis Corporation, a firm that manufactures office equipment. After reading an article that stressed the benefit of participative management, Kevin believes that these benefits could be realized in his department. The first decision involved vacation schedules. On the vacation issue, the group was deadlocked and Kevin would have to resolve the dispute himself. The second decision involved production standards. New equipment made it possible for workers to earn more without working harder. The savings from higher productivity would pay for the new equipment. The workers recommended keeping production standards the same. The spokesman explained that their base pay had not kept up with inflation and the pay incentive simply restored their base pay to its prior level. Questions
According to Hersey–Blanchard, the performance of the employees determines the leadership style. Kevin wants to use a participative style and give support to employee ideas. When employees develop a higher level of development, they benefit from support, not directives. These employees have a lower level of development and quality control issues in their jobs. So, Kevin must return to a telling style because the workers need direction. Vroom and Jago note that the autocratic style saves time without reducing decision quality or acceptance. The workers prefer to have Kevin make the decisions.
In the past, Kevin had a telling style, directing employees and making all decisions for them. Then Kevin gave rewards based on productivity. During the experiment, he used a participative style, allowing them to make some decisions about their vacations and the production standards of their work, but the workers were not ready. They were not used to making decisions and could not reach consensus. They preferred to have Kevin direct them.
Students’ answers will vary. Some may say that Kevin should use a more directive style. The workers are far more comfortable with a task-oriented leadership style. He could develop the workers abilities and skills through training and then increase their development for a more participative style.
An Impossible Dream? Synopsis Allen Block was responsible for the technical implementation of the new customer relationship management (CRM) software in Los Angeles and Chicago. The software was badly needed to improve follow-up sales for his company, Exert Systems. Exert sold exercise equipment to high schools and colleges, as well as to small and midsized businesses for recreation centers, through a national force of 310 salespeople. The company’s low prices won a lot of sales; however, follow-up service was uneven and the new CRM system promised to resolve those problems with historical data, inquiries, reminders, and updates going to sales reps daily. The CEO of Exert ordered the CRM system installed with all possible haste. Block currently had four members in the team working on this project: two in Los Angeles and two in Chicago. On his way to Chicago from Los Angeles, Block kept on thinking about what was wrong with his team. The guys in LA seemed to be focusing tirelessly on work, alternating work with joking around. His team members in Chicago appeared to be alternating between bickering and avoiding one another. Block kept receiving persistent complaints about his team members’ productivity from his boss Zequine Mansell. All through his flight, Block kept on thinking about the reasons for this low productivity and lack of passion among his team members. Block also started fearing that this would ruin his dreams of replacing his boss Mansell, after her retirement. Questions
Students’ answers will vary. Some may say that with respect to the given scenario, Block’s leadership approach is high on task behavior and low on relationship behavior. In the given situation, a high relationship behavior might assist in correcting the situation. High relationship behaviors include providing support and recognition, developing followers’ skills and confidence, and consulting and empowering followers when making decisions and solving problems. Most leaders typically lean toward being stronger in either task-oriented or relationship-oriented behavior, but most experts suggest that a balance of concern for tasks and concern for people is crucial for leadership success over the long term.
Students’ answers will vary. Some may say that Block should immediately call for a meeting with the complete team and discuss the issues that are hampering the productivity. He should adopt a participative leadership style to improve the situation and complete the project on time. Participative leadership consults with subordinates about decisions. Leader behavior includes asking for opinions and suggestions, encouraging participation in decision making, and meeting with subordinates in their workplaces. The participative leader encourages group discussion and suggestions.
Students’ answers will vary. Some may say that Block’s team members no longer abide by norms based on group cohesiveness. The substitutes for leadership—both task-oriented substitutes and people-oriented substitutes—are no longer in place. Block needs participative leadership as described in the path–goal theory to clarify followers’ needs and rewards. Case Assessment Activities As an additional resource, Case Assessment Activities are provided in downloadable Word files on the text companion website and as graded assignments in MindTap. These activities include short cases and scenario-based multiple choice questions that assess students’ comprehension of chapter concepts. The following open-ended questions accompany these graded assignments and can be used as discussion starters or for additional subjective assessment.
Questions
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