What are leadership substitutes and neutralizers

Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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Welcome to Chapter 12 – Leadership from our Organizational Behavior textbook

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Learning Objectives

What is the nature of leadership and the leadership process?

What are the processes associated with people coming to leadership positions?

How do leaders influence and move their followers to action?

What are the trait perspectives on leadership?

What are the behavioral perspectives on leadership?

What are the situational perspectives on leadership?

What does the concept “substitute for leadership” mean?

What are the characteristics of transactional, transformational, and charismatic leadership?

How do different approaches and styles of leadership impact what is needed now?

Organizational Behavior by OpenStax, 2019

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The nine leaning objectives for this chapter are…

What is the nature of leadership and the leadership process?

What are the processes associated with people coming to leadership positions?

How do leaders influence and move their followers to action?

What are the trait perspectives on leadership?

What are the behavioral perspectives on leadership?

What are the situational perspectives on leadership?

What does the concept “substitute for leadership” mean?

What are the characteristics of transactional, transformational, and charismatic leadership?

How do different approaches and styles of leadership impact what is needed now?

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Contents

The Nature of Leadership

The Leadership Process

Leader Emergence

The Trait Approach to Leadership

Behavioral Approaches to Leadership

Situational (Contingency) Approaches to Leadership

Substitutes for and Neutralizers of Leadership

Transformational, Visionary, and Charismatic Leadership

Leadership Needs in the 21st Century

Organizational Behavior by OpenStax, 2019

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The chapter is organized into nine sections that align with the learning objectives…

The Nature of Leadership (defining leadership and management);

The Leadership Process (reviewing the leadership process model);

Leader Emergence (considering formal and informal leaders, paths to leadership, and sources of power for leaders);

The Trait Approach to Leadership (discussing the “Great Man Theory” of leadership);

Behavioral Approaches to Leadership (reviewing Blake and Mouton Leadership Grid);

Situational (Contingency) Approaches to Leadership (reviewing Fiedler’s Contingency Model);

Substitutes for and Neutralizers of Leadership (considering the factors that replace or hinder leadership);

Discuss Transformational, Visionary, and Charismatic Leadership (reviewing types of leadership); and

Leadership Needs in the 21st Century (discussing authentic leadership); and finally…

…we will also touch on the TedTalk, ‘How great leaders inspire action’, by Simon Sinek.

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The Nature of Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In, The Nature of Leadership, we will define leadership and management

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Leadership vs. Management

Leadership

Leadership is a social (interpersonal) influence relationship between two or more persons who depend on each other to attain certain mutual goals in a group situation

Maintenance needs – the need for individuals to fit and work together by having, for example, shared norms

Task needs – the need for the group to make progress toward attaining the goal that brought them together

Leaders often emerge out of events that unfold

Leaders derive power from followers’ perception of knowledge and attractiveness (expert, referent)

Leaders motivate primarily through intrinsic processes

Management

Management is a process consisting of…

Planning

Organizing

Directing

Controlling

Managers are generally appointed to their role

Managers commonly derive their power from the larger organization (reward, coercive)

Managers motivate primarily through extrinsic processes

Organizational Behavior by OpenStax, 2019

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Leadership is a social (interpersonal) influence relationship between two or more persons who depend on each other to attain mutual goals. In general, effective leadership is about motivating others toward organizational goals. To accomplish that, leaders (and managers) generally focus on two types of needs...

Maintenance needs – the need for individuals to fit and work together, for example, going to coffee together; and

Task needs – the need for the group to make progress toward attaining goals, for example, registering students for summer session.

Leaders may be designated (or formal) or they may emerge (or be informal) based on events, for example when the university had to account for student attendance as part of a department of education audit on student financial aid, it wasn’t clear who had formal authority over the response, instead a task force was formed and from that task force, one administered ‘emerged’ to lead the campus response and process for faculty and students.

Leaders (as opposed to managers), generally derive their power (or potential for influence) more from followers’ perception of the leader’s knowledge and attractiveness (expert, referent), than from formal authority (or reward or coercive power); and motivate primarily through intrinsic processes.

In contrast, Management is a process consisting of…

Planning – looking ahead at how the group will achieve its goals;

Organizing – synchronizing the human capital, financial capital, and physical resources toward goal attainment;

Directing – guiding and overseeing work of employees; and

Controlling – evaluating and correcting work behavior of employees.

Managers are generally appointed to their role, commonly derive their power from the larger organization (using reward and coercive power) and try to motivate through extrinsic factors.

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The Leadership Process

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In, The Leadership Process, we will review the leadership process model

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Leadership Process

Leaders are people who take charge of or guide the activities of others

The follower’s personality and readiness to follow determine the style of leadership that will be most effective

Context refers to the situation that surrounds the leader and the followers

The process is a complex, interactive, and dynamic working relationship between leader and followers

Two outcomes:

Have the group’s maintenance needs been fulfilled

Have the group’s task needs been met

Organizational Behavior by OpenStax, 2019

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Leadership is a process, a complex and dynamic exchange relationship built over time between leaders and followers to attain a mutually desired goal…

It starts with the Leader or the person who is either designated or emerges to guide the activities of others and her or his style of leadership; the process is then impacted by the…

The follower’s personality and readiness to follow, which helps to determine the style of leadership that will be most effective;

Context is also important, which refers to the situation that surrounds the leader and the followers (such as task complexity): next…

The process needs to be considered, which is a complex, interactive, and dynamic working relationship between leader and followers; and finally there are Two outcomes to consider…

Has the group’s maintenance needs been fulfilled; and

Has the group’s task needs been met.

For example, when I led our undergraduate studies directors, my style was more accommodating or participatory, as the followers were highly competent and motivated employees, we were often working on very complex issues (such as developing new academic advising and support resources for students), our process was very collaborative and trusting, and I believe we were successful in meeting both the maintenance and task needs of the team. That is, we were successful in our outcomes due to the alignment between the leader, the followers, the context, and the process.

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Leaders

Process

Outcomes

Followers

Context

Leader Emergence

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In, Leader Emergence, we will consider formal and informal leaders, paths to leadership, and sources of power for leaders

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Leader Emergence

A formal leader is that individual who is recognized by those outside the group as the official leader of the group

The informal leader is that individual whom members of the group acknowledge as their leader

Paths to Leadership:

Designated leader in this instance the designated and formal leader are the same person

Emergent leaders arise from the dynamics and processes that unfold within and among a group of individuals as they endeavor to achieve a collective goal

Sources and types of power:

Reward power—the power a person has because people believe that he can bestow rewards or outcomes

Coercive power—the power a person has because people believe that he can punish them by inflicting pain or by withholding or taking away something that they value

Referent power—the power a person has because others want to associate with or be accepted by him

Expert power—the power a person has because others believe that he has and is willing to share expert knowledge that they need

Legitimate power—the power a person has because others believe that he possesses the “right” to influence them and that they ought to obey

Organizational Behavior by OpenStax, 2019

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A formal leader is that individual who is recognized by those outside as the official (or designated by the organization) leader of the group; whereas

The informal leader is the individual whom members of the group acknowledge as their leader; and at times the two are not the same.

For example, I’ve been in meetings where the designated leader will make a suggestion, then there is a pause, as everyone looks to the informal leader, who would then nod (essentially accepting the leaders suggestion) or begin to lay-out an alternative (which the team is more likely to want to support).

Thus, there are two Paths to Leadership:

Being appointed as the designated leader by the organization (for example you assigned supervisor or manager); or

Being an emergent leaders (which may or may not be recognize by the formal organization) but is recognized by the group or team.

For both managers and leaders, there are several Sources and types of power (which is the capacity or potential to influence the behavior of others):

As mentioned earlier, managers generally rely on…

Reward power—the power to bestow rewards (such as a raise) or positive outcomes (such as allowing an employee to telecommute);

Coercive power—the power a person has, to punish (such as a write-up) or by withholding or taking away something that they value (such as limiting a flexible schedule); and

Legitimate power—the power a person has based on the position itself, regardless of the person (for example, faculty have legitimate power to set the syllabus, the learning activities, and to grade student work).

Whereas leaders generally rely on…

Referent power—the power a person has because others want to associate with or be accepted by her or him (such as a charismatic leader); and

Expert power—the power a person has because others believe that she or he has and is willing to share expert knowledge that they need (such as to set-up a cyber defense strategy for the organization).

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The Trait Approach to Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In, The Trait Approach to Leadership, we will discuss the “Great Man Theory” of leadership

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Great Man Theory

The great man theory of leadership states that some people are born with the necessary attributes to be great leaders

Core Traits:

Drive—a high level of effort, including a strong desire for achievement as well as high levels of ambition, energy, tenacity, and initiative

Leadership motivation—an intense desire to lead others

Honesty and integrity—a commitment to the truth (no deceit), where word and deed correspond

Self-confidence—an assurance in one’s self, one’s ideas, and one’s ability

Cognitive ability—conceptually skilled, capable of exercising good judgment, having strong analytical abilities, possessing the capacity to think strategically and multi-dimensionally

Behavior = f [(Person) (Situation)]

Organizational Behavior by OpenStax, 2019

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The great man theory of leadership states that some people are born with the necessary attributes (or core traits) to be great leaders, such as…

Drive—a strong desire for achievement, wanting to be the best;

Leadership motivation—an intense desire to lead others;

Honesty and integrity—a commitment to the truth, where word and deed correspond;

Self-confidence—an assurance in one’s self, one’s ideas, and one’s ability; and

Cognitive ability—conceptually skilled, capable of exercising good judgment, having strong analytical abilities, possessing the capacity to think strategically and multidimensionally

However, evidence accumulated to date does not provide a strong base of support for the notion that leaders are born, rather leadership effectiveness is a function of the person and the situation, and that leadership knowledge, skills, and abilities can be developed.

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Behavioral Approaches to Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In Behavioral Approaches to Leadership, we will review Blake and Mouton Leadership Grid

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The Leadership Grid

The Behavioral Approach focuses on what leaders do and how they do it (effective leader behavior)

Blake and Mouton Leadership Grid:

Concern for results (production) emphasizes output, cost effectiveness, and (in for-profit organizations) a concern for profits

Concern for people involves promoting working relationships and paying attention to issues of importance to group members

Organizational Behavior by OpenStax, 2019

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The Behavioral Approach to leadership, focuses on what leaders do and how they do it, defining effective vs. ineffective leader behavior and believing there is one best or optimal style of leadership.

One example is the Leadership Grid by Blake and Mouton, uses two (2) classifications of leadership behavior dimensions…

Concern for results (production) emphasizes output, cost effectiveness, and (in for-profit organizations) a concern for profits; and

Concern for people involves promoting working relationships and paying attention to issues of importance to group members

…using a score of 1-low to 9-high on the behavior…

Leading to five (5) styles of leadership…

Impoverished (or indifferent) Management (1-results, 1-people): Are low on both concern for results and people. When I managed an office in Minneapolis, my predecessor (who was fired), would apparently come into the office late, close his window blinds so one could see him, and then leave early, with minimal interaction with clients, talent, or staff. The leader had a low concern for employee satisfaction and work deadlines and as a result disharmony and disorganization prevailed in the office.

Task (or controlling) Management (9-results, 1-people): Are more concerned about production than people. Back to the Minneapolis example, my direct supervisor at the time was a Task Manager. She would come to visit each month, over a couple of days, meeting with clients and giving me a list of detailed instructions, without ever checking in with how I was doing or concern for the team. She believed that efficiency of the office was more important than the people. Although the style can have short-term increases in output, it can also lead to high turnover (and I eventually resigned my positon).

Middle-of-the-Road (or status quo) (5-results, 5-people): This is basically a compromising style wherein the leader tries to maintain a balance between goals of company and the needs of people. The leader does not push the boundaries of achievement resulting in average performance for organization.

Country Club (or accommodating) (1-results, 9-people): This is a collegial style characterized by low task and high people orientation where the leader gives thoughtful attention to the needs of people (much like a country club director, who is beholden to the membership association for her or his potion), however, the low focus on tasks can hamper production and lead to questionable results.

Team Management (9-results, 9-people): is characterized by high people and high task focus and has been termed as the most effective style according to Blake and Mouton. The leader feels that empowerment, commitment, trust, and respect are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

The challenge for the behavioral approach, as we learned earlier, is that performance is an interaction between the person and the situation, and therefore, the leadership style that is most effective may be contingent on the situation, which could make task,, accommodating or even indifferent the ideal choice.

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Middle of the Road Manager (Status Quo) 5,5

Country Club Manager (Accommodating) 1,9

Team Manager (Sound) 9,9

Impoverished Manager (Indifferent) 1,1

Task Manager (Controlling) 9,1

Situational (Contingency) Approaches to Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In Situational (or Contingency) Approaches to Leadership, we will review Fiedler’s Contingency Model

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Fiedler’s Contingency Model

The Contingency model attempts to pinpoint the situational conditions in which a person's traits and style will result in effective leadership (effective leader situation)

Fiedler’s Contingency Model, organizations attempting to achieve group effectiveness through leadership must assess the leader according to an underlying trait, assess the situation faced by the leader, and construct a proper match between the two

Least-preferred coworker (LPC), the person with whom they least like to work

Situational favorableness is the degree to which leaders have control and influence (Leader-member relations, Task structure, and Position Power)

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Whereas trait theory looked for inborn characteristics of leaders, and behavioral theory looked at the one optimal leadership style, The Contingency Approach attempts to pinpoint the situational conditions in which a person's traits and style will result in effective leadership.

One example is Fiedler’s Contingency Model, where organizations attempting to achieve group effectiveness through leadership would assess the leader according to her or his trait, and then assess the situation faced by the leader, and match the trait to the situation.

It starts with the leader’s trait, which is either task oriented or relation oriented, and can be determined by asking about the leader’s least-preferred coworker (or LPC).

High LPC scores are relationship oriented—They tend to evaluate their least-preferred coworkers in favorable terms; and need to develop and maintain close interpersonal relationships. Task accomplishment is a secondary need and becomes important only after the need for relationships is satisfied;

In contrast, leaders with low LPC scores tend to evaluate the individuals with whom they least like to work negatively. They are task-oriented people, and only after tasks have been accomplished are low-LPC leaders likely to work on establishing good social and interpersonal relations.

Some situations are more favorable to the leaders, based on the level of trust, task complexity, and authority. The first situation variable is…

Leader-member relations—which is the degree of the group’s acceptance of the leader, their ability to work well together, and members’ level of loyalty to the leader. Keep in mind, this is not the same as the leader’s trait, as even low LPC leaders can have high leader-member relations; rather this is about trust. For example, Bill Belichick, the head coach for the New England Patriots football team who has won a record 6 super bowls in the NFL is likely a low LPC leader, but he has high leader-member relations; then there is…

Task structure—or the degree to which the task specifies a detailed, unambiguous goal and how to achieve it (in other words,, is it a fairly straightforward job, such as stocking shelves, that has high task structure; or a complex, novel problem, such as developing an ad campaign, which would have low task structure); and finally there is….

Position power—or a leader’s direct ability to influence group members, which is the legitimate authority of the role. For example, in one of my early supervisor roles, I had the responsibility for a sales team’s performance, however, I did not have the ability to choose my team or discipline members, which meant I had weak position power.

Fiedler’s research indicates that relationship-oriented (high-LPC) leaders are much more effective under conditions of intermediate favorability than under either highly favorable or highly unfavorable situations.

For highly favorable and unfavorable situations, task-oriented leaders (those with a low LPC) are very effective. As tasks are accomplished, a task-oriented leader allows the group to perform its highly structured tasks without imposing more task-directed behavior.

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Substitutes for and Neutralizers of Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In Substitutes for and Neutralizers of Leadership, we will consider the factors that replace or hinder leadership

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Substitutes and Neutralizers

Substitutes for leadership behavior can clarify role expectations, motivate organizational members, or satisfy members (making it unnecessary for the leader to attempt to do so)

Neutralizers of leadership, on the other hand, are not helpful; they prevent leaders from acting as they wish

Experience/Training

Professionalism

Rewards

Structured task

Provides feedback

Job satisfaction

Explicit goals

Rules and procedures

Cohesive work group

Organizational Behavior by OpenStax, 2019

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Substitutes for leadership behavior can clarify role expectations, motivate organizational members, or satisfy member needs, making it unnecessary for the leader to attempt to do so); in contrast…

Neutralizers of leadership are similar, but prevent (or hinder) leaders from Planning, Organizing, Directing, or Controlling employees.

In both cases, of substitutes and neutralizers, there are similar factors that can impact the need for and influence of, leaders…

Experience/Training – the more experienced or competent the team, the less need (and in some cases the greater resistance) to leadership;

Professionalism – Faculty are a good example, with specialized degrees, and being part of the broader academic academy, we don’t really have ‘supervisors’ in the conventional sense, and chairs or deans who try to ‘manage’ faculty often run into challenges;

Rewards – for example, a straightforward commission-based sales program; or a balanced scorecard that clearly indicates what employees are accountable for minimizes the need for leaders;

Structured task – having a straightforward, highly structured task reduces the need for leadership;

Provides feedback – if your job itself, lets you know how you are doing, then you are less dependent on feedback from your supervisor;

Job satisfaction – the more employees are satisfied with their jobs, then the less oversight of leadership is likely to be required;

Explicit goals – knowing what the overall job, team, or department goals and help to reduce the need for management;

Rules and procedures – the clearer the process, then the easier to follow; and finally…

Cohesive work group – as we have seen before, cohesive groups are more likely you are to follow group norms.

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Transformational, Visionary, and Charismatic Leadership

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In Transformational, Visionary, and Charismatic Leadership, we will consider types of leadership

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Types of Leadership

Transactional leader, guide their followers toward established goals by clarifying role and task requirements

Transformational (visionary) leader, on the other hand, moves and changes (fixes) things “in a big way”, who influence others through an emotional and/or intellectual attraction to the leader’s dreams of what “can be”

Charismatic leaders are people who possess legitimate power that arises from “exceptional sanctity, heroism, or exemplary character”

Organizational Behavior by OpenStax, 2019

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Three additional types of leaders to consider, that fall outside the scope of trait, behavioral or situation leadership, include the…

Transactional leader, who guide their followers toward established goals by clarifying role and task requirements; and using an exchange of what the employee needs with what the organization requires, often in incremental steps (for example, an employee agrees to lead a task team, as the experience increases the likelihood of being promoted); the…

Transformational (or visionary) leader, on the other hand, moves and changes things “in a big way”, influencing others through an emotional and/or intellectual attraction to the leader’s dreams of what “can be”, as we will see later from Simon Sinek’ TedTalk; and finally there are…

Charismatic leaders, or people who possess legitimate power that arises from “exceptional sanctity, heroism, or exemplary character”, think of Dr. Martin Luther King or Minister Malcom X.

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Leadership Needs in the 21st Century

Organizational Behavior

Organizational Behavior by OpenStax, 2019

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In Leadership Needs in the 21st Century, we will discuss authentic leadership

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Authentic Leadership

Their followers consider them ethical

Know who they are

Know what they believe in and value

Act on those values and beliefs openly and candidly

Organizational Behavior by OpenStax, 2019

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As we look to the future, moving beyond traits, behaviors, or situations; it may be that truly Authentic Leaders (or those whose legitimate power comes from developing open and honest relationships with followers and is based on an ethical foundation) is what is needed most.

Authentic leaders

Are considered ethical by their followers;

Know who they are (their strengths, their limitations, and their interests);

Know what they believe in and value (and why); and they…

Act on those values and beliefs openly and candidly.

Think of someone like Mahatma Gandhi.

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Simon Sinek How great leaders inspire action

Organizational Behavior

https://www.ted.com/read/ted-studies/management

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Simon Sinek, ‘How great leaders inspire action’, May 2010

https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

Finally, let’s consider the TedTalk by Simon Sinek, How great leaders inspire action…

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How great leaders inspire action

The Golden Circle

Inspiring Action

Most organizations or managers think from the outside in

What, how, and then why

But great organizations and leaders think form the inside out

Why, then how, and then what

People don’t buy ‘what’ you do, they buy ‘why‘ you do it!

Organizational Behavior by OpenStax, 2019

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How great leaders inspire action…Simon Sinek outlined the…The Golden Circle

Companies generally know what they do, for example teach students at a university (which touches on our neocortex – or rational brain);

And even how they do it, such as teaching an online, hybrid or face-to face class;

But few know why they do what they do (beyond making money…what is the call, purpose, or belief), such as to change lives through educational attainment (which touches on the limbic system – or the emotional brain…and ultimately drives action)

To Inspire Action

Most organizations or managers think from the outside in (what, how, and then why);

But great organizations and leaders think form the inside out (why, then how, and then what).

People don’t buy ‘what’ you do, they buy ‘why‘ you do it

And that concludes the presentation for Chapter 12 – Leadership.