IO PSY Unit VI Assessment

PSY 4680, Industrial Organizational Psychology 1

UNIT VI STUDY GUIDE

Leadership Emergence and

Effectiveness

Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to:

1. Define leadership. 2. Compare and contrast the sources of power and provide examples of

each. 3. Evaluate trait theory and the major research findings regarding traits and

leadership. 4. Identify behavioral models of leadership. 5. Compare and contrast contingency and situational models of leadership. 6. Discuss transformational leadership and how it impacts followers. 7. Explain Vroom-Yetton’s approach to modeling decision-making. 8. Analyze the major findings regarding gender and leadership. IO PSY Unit VI Assessment

Unit Lesson In previous units, we explored ways to assess employees, and we also discussed ways to motivate them. When motivating employees, often the goal is to influence them in some way, to encourage a positive response from them that is aligned with their job and the organization’s goals. Throughout the organization, there are individuals in defined, as well as undefined, roles who have the capacity to influence employees. There are leaders in formal positions of authority, as well as leaders who emerge in response to the needs of the environment. The art of leadership has been studied for thousands of years, and I/O psychologists today are studying the traits, behaviors, skills, processes, and outcomes of effective leadership in the workplace. They are conducting research and publishing in top academic journals, such as The Leadership Quarterly. They are also working within organizations as leadership coaches, assessing leadership potential in employees, creating leadership development programs, analyzing the strengths and weaknesses of leaders, and exploring ways to promote positive, ethical forms of leadership. In this unit, we will explore some of the more prominent theories of leadership that I/O psychologists recognize and apply. Leadership Defined Leadership, “involves influencing the attitudes, beliefs, behaviors, and feelings of other people,” (Spector, 2012, p.326). It is a topic that is of interest across many different disciplines, and has its roots in ancient times. Today, there is a renewed interest in the topic of leadership as organizations strive to identify ways to maximize performance, inspire employees through challenging times, and to address wide scale issues of ethical misconduct within industries. There are many ways to study leadership. A good starting place is to consider the role of power in the relationship between leaders and followers.

Reading Assignment Chapter 13: Leadership and Power in Organizations

Suggested Reading Xiaoyong Xufen

Yujiannong, S. (2011). Ethical leadership and leaders’ personalities. Social Behavior & Personality: An International Journal, 39(3), 361-368.

Learning Activities (Non-Graded) See information below.

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People can derive power from a variety of sources. For example, a police officer has a certain degree of power, such as the power to punish or to initiate a punishment for people who are not abiding by the laws. Similarly, parents have power over their children, power to punish or to reward. Parents also have power over their children due to the fact that they know more than their children, such that children will turn to their parents for advice or answers when in doubt. This power enables the parent to influence their children, even after adulthood begins (Raven & French, 1958). French and Raven (1958) describe a variety of sources of power including expert power, legitimate power, reward power, coercive power, and referent power. Leadership and Power Expert power refers to a source derived from having expertise in something. For example, a person in the office may emerge as a leader in certain situations when their expertise becomes relevant to addressing an urgent problem (e.g., technological problems). Legitimate power refers to a source derived from one’s position. For example, a person who is in the position of “Store Manager” can lead others to behave in certain ways simply because of their position within the organizational hierarchy. Legitimate power often brings other abilities to influence others, particularly through the use of reward and punishment. Reward power is a source derived from a person having authority or possession over something of value to others, such as the ability to promote, to increase salary, or to praise. Coercive power refers to the source derived from a person having the authority or ability to punish, such as the ability to decrease pay, to exclude others socially, or to charge a fine. Finally, referent power is derived from one’s personality or other personal characteristics, such as the ability to influence others through charisma. With referent power, others tend to identify with the leader based on these characteristics (French & Raven, 1958). The type of power that an individual possesses impacts their ability to emerge as a leader and to perform well in leadership roles. It also has implications for the type of leadership approach someone will be most effective using (Spector, 2012). We will review a variety of leadership approaches in the sections that follow, but these are just some of the more prominent theories. Trait Approach The modern study of leadership began with an emphasis on leadership traits. Researchers and practitioners believed that, in order to be effective in a leadership role, a person had to possess certain traits. Early research studies investigated which traits could be used to distinguish between leaders and nonleaders. However, as research accumulated, it became difficult to identify traits that are linked to effective leadership, consistently across settings. Thus, many leadership scholars shifted their focus to identify effective leadership behaviors. However, in recent years there has been a reemergence of trait- based leadership research (Zaccaro, 2007). For example, Bono and Judge (2004) conducted a meta-analysis study exploring the role of personality in transactional and transformational leadership. They found that people who are more extroverted, as opposed to introverted, are more likely to be rated high on transformational leadership behaviors. Another example is the use of personality to predict positive leadership approaches. For example, Kalshoven, Den Hartog, and De Hoogh (2011) used traits to predict ethical leadership behaviors. They found that conscientiousness, as opposed to extraversion, predicts ethical leadership behaviors. These are just a few examples representing many studies investigating the role of traits in leadership. The field of leadership studies shifted from studying traits to investigating effective leadership behaviors. IO PSY Unit VI Assessment

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Behavioral Theories Several large-scale research efforts have explored leadership behaviors, resulting in leadership theories that are prominent today. For example, one research initiative explored behaviors associated with initiating structure, as well as a second set associated with consideration. Initiating structure includes behaviors that a leader does that help to ensure followers perform well and accomplish tasks. For example, this includes behaviors such as delegating work tasks, explaining expectations, and creating a communication system. Whereas, consideration includes behaviors that a leader does that involve showing respect, expressing appreciation, and asking how they feel. A recent meta- analysis study showed that consideration behaviors are often linked to positive follower attitudes. For example, followers with leaders who exhibit consideration behaviors tend to have higher follower satisfaction with their leader and with their job. The research also suggests that these followers tend to have higher motivation levels, and they also performed better than those with leaders who were low on consideration. Followers with leaders who demonstrated high initiating structure tended to perform better than those who had leaders who demonstrated less initiating structure behaviors (Judge, Piccolo, & Ilies, 2004). These findings are consistent with other research studies in this area, and many I/O psychologists rely on behavioral theories to understand and to improve leadership performance. However, there has been a shift in focus to incorporate the role of the situation to understand leader emergence and performance. The Role of the Situation Leadership research in recent years has focused increasingly more on the role of the situation in determining who will emerge as a leader and who will be effective in a leadership role. One of the most well-known leadership theories that takes into account the situation is referred to as the contingency theory. According to this theory, the degree to which a leader will be effective in a situation is dependent on whether the leader’s orientation is aligned with the characteristics of the situation. These characteristics include the degree to which follower tasks are structured (task structure), leader-member relations, and position power. Leader-member relations refer to how well the leader and follower relate to one another. According to Fielder (1972), who coined the theory, the better the relationship between the leader and followers, the more power and influence the leader has. He refers to it as the most important of the three characteristics. Position power reflects the degree to which the leader is in a position of authority, as opposed to having little legitimate power. Fiedler established eight different quadrants with different combinations of high and low favorability among these characteristics. For example, suppose a leader is a Supervising Manager (strong position power), in a manufacturing plant in which all employees perform set tasks each day with little variation (“structured” task structure), and has great relationships with the staff (good leader-member relations). This would be a highly favorable situation. In this case, although a relationship motivated leader may perform slightly better, there is not a huge difference between how they would perform, versus someone who is task- motivated. Using this theory, we could contrast this scenario with that of an unfavorable situation. Suppose a leader is in the same position, within a different department of the manufacturing plant, only in that department, employees are disappointed because their previous Supervising Manager was very unfair and demanding. A new Supervising Manager would enter a situation in which they have strong position power, with employees working on highly structured tasks, however the leader-member relations are poor. In this situation, a leader who is relationship-motivated, as opposed to task-motivated, is likely to perform better in this role (Fiedler, 1972). IO PSY Unit VI Assessment

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Transformational Leadership One of the more popular leadership approaches of modern history is the transformational leadership approach. Leaders who use this approach typically exhibit charisma. It is also associated with a set of four behaviors, which are referred to as the Four I’s. These include idealized influence, individualized consideration, intellectual stimulation, and inspirational motivation. Idealized influence refers to behaviors associated with being a role model, which often result in followers identifying with the leader. Individualized consideration involves behaviors associated with showing concern for followers. Intellectual simulation involves behaviors associated with encouraging innovation. Finally, inspirational motivation involves behaviors associated with articulating a vision to the followers. Together these behaviors tend to have transformational effects, in that they are associated with highly committed and motivated followers who perform beyond expectations (Spector, 2012). Vroom-Yetton Model Another approach to understanding leadership is through exploring how leaders make decisions. The Vroom-Yetton Model of leadership is a practical method that leaders can apply within their everyday decision-making to determine how to solve problems. In particular, the model suggests different decision-making approaches, which differ depending on the degree to which the leader makes the decision alone versus through the involvement of followers. Supervisors take into account characteristics of the situation, such as the amount of information the supervisor has to make the decision, the degree to which the employees are committed to finding a solution, and the degree to which it is necessary to reach a solution when determining which approach to take (Spector, 2012). Summary Organizations invest much time and resources to develop leaders who are effective. I/O psychologists contribute to leadership development efforts in a variety of ways. When working with leaders, they often refer to theories and models like those described here and in your textbook. For example, an area of rising interest in this field is gender and leadership. Researchers are exploring the effectiveness of women in leadership roles and limits placed on their advancement into these roles, as well as the approaches that women use to lead. Each leadership situation differs, and it is difficult to predict what types of leadership interventions are necessary without gathering critical information. I/O psychologists apply their research skills to assess and to diagnosis leadership situations, allowing them to contribute valid solutions to organizational problems and to contribute to the growing body of research in this area. IO PSY Unit VI Assessment

References Bono, J. E., & Judge, T. A. (2004). Personality and transformational and

transactional leadership: A meta-analysis. Journal Of Applied Psychology, 89(5), 901-910.

Fiedler, F. E. (1972). The effects of leadership training and experience: A

contingency model interpretation. Administrative Science Quarterly, 17(4), 453-470.

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Judge, T. A., Piccolo, R. F., & Ilies, R. (2004). The forgotten ones? The validity

of consideration and initiating structure in leadership research. Journal Of Applied Psychology, 89(1), 36-51.

Kalshoven, K., Den Hartog, D., & De Hoogh, A. (2011). Ethical leader behavior

and big five factors of personality. Journal Of Business Ethics, 100(2), 349-366.

Raven, B. H., & French, J. P. (1958). Legitimate power, coercive power, and

observability in social influence. Sociometry, 21(2), 83-97. Spector, P. E. (2012). Industrial and organizational behavior: Research and

practice (6th ed.). Hoboken, NJ: John Wiley & Sons, Inc. Zaccaro, S. J. (2007). Trait-based perspectives of leadership. American

Psychologist, 62(1), 6-16.

Learning Activities (Non-Graded) Explore the International Leadership Association website: http://www.ila-net.org/about/index.htm Take a leadership survey or explore the resources at the Center for Creative Leadership website: http://www.ccl.org Non-Graded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions contact your instructor for further guidance and information.