2.5 Power and leadership effectiveness

Power and leadership effectiveness are crucial aspects of organizational dynamics. This topic explores how leaders derive and use power to influence others, examining sources like formal authority, resource control, and network centrality. It also delves into leadership styles, traits, and behaviors that contribute to leader effectiveness.

The chapter highlights the importance of adapting leadership approaches to different situations and followers. It covers contingency theories, leader-member exchange, and transformational leadership, emphasizing how leaders can inspire and motivate others to achieve exceptional results. Gender and cross-cultural considerations in leadership are also addressed.

Sources of leader power

• Power is the ability to influence others and achieve goals in an organization
• Leaders can derive power from various sources, both positional and personal
• The amount and type of power a leader holds impacts their effectiveness in directing and motivating followers

Positional vs personal power

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• Positional power stems from a leader's formal role and authority in the organizational hierarchy
• Personal power arises from a leader's individual characteristics, skills, and relationships
• Effective leaders often combine both positional and personal power to maximize their influence

Formal authority

• Formal authority is the legitimate power granted to a leader based on their position
• It includes the right to make decisions, give orders, and expect compliance from subordinates
• Examples of formal authority include a CEO's power to set company strategy or a manager's power to assign tasks

Control over resources

• Leaders with control over critical resources (budgets, information, equipment) have power over those who need access to those resources
• Allocating or withholding resources allows leaders to reward compliance or punish disobedience
• For example, a project manager may have power by controlling the budget and timeline for a key initiative

Centrality in networks

• Leaders who are central in communication and social networks have greater power and influence
• They have access to more information, can control information flow, and can broker connections between disconnected parties
• Examples include a team lead who is the main point of contact with external stakeholders or a well-connected manager who can navigate the informal power structures

Leadership styles

• Leadership style refers to the characteristic patterns of behavior that leaders exhibit when directing and motivating followers
• Different styles are appropriate for different situations and can have distinct effects on follower performance and satisfaction
• Effective leaders are often able to adapt their style to fit the needs of their team and the demands of the task

Autocratic vs participative

• Autocratic leaders make decisions unilaterally with little input from followers
  • This style can be efficient in crisis situations or with inexperienced teams, but may lower morale and creativity
• Participative leaders involve followers in decision making and encourage their ideas and opinions
  • This style can increase buy-in and utilization of follower expertise, but may be time-consuming and lead to lack of direction

Transactional vs transformational

• Transactional leaders focus on exchanges of rewards for performance
  • They set clear goals, monitor progress, and provide contingent rewards or punishments
  • This style can be effective for routine tasks but may not inspire exceptional effort or innovation
• Transformational leaders seek to appeal to followers' values and ideals to elicit commitment and extra effort
  • They provide inspirational motivation, intellectual stimulation, and individualized consideration
  • This style can lead to high performance and loyalty, but requires strong vision and charisma

Situational leadership

• Situational leadership theory proposes that effective leaders adapt their style to the readiness level of their followers
  • Readiness is a combination of follower ability and willingness to take responsibility for a task
• For low readiness followers, leaders should provide clear direction and close supervision
• As follower readiness increases, leaders should shift to a more coaching, supporting, and delegating style
• Situational leadership emphasizes leader flexibility and diagnosis of follower needs

Leader traits and effectiveness

• Leader trait theories aim to identify the personal characteristics that distinguish effective leaders
• While no universal traits have been found, research suggests that certain traits are associated with leadership emergence and effectiveness
• Leader traits interact with the situation to shape leader behaviors and outcomes

Personality characteristics

• Several Big Five personality traits are related to leadership:
  • Extraversion: outgoing, assertive, energetic
  • Conscientiousness: organized, responsible, achievement-oriented
  • Emotional stability: calm, secure, resilient
  • Openness to experience: curious, imaginative, open-minded
• Other relevant traits include self-confidence, dominance, and risk-taking propensity

Cognitive abilities

• Cognitive abilities such as intelligence, creativity, and judgment are important for leadership roles
• Intelligence is positively related to leadership emergence and effectiveness, especially in complex environments
• Creative problem-solving skills allow leaders to develop innovative solutions and adapt to change
• Good judgment enables leaders to make sound decisions and provide clear direction to followers

Emotional intelligence

• Emotional intelligence (EQ) is the ability to recognize and manage one's own and others' emotions
• EQ has four key components:
  • Self-awareness
  • Self-management
  • Social awareness
  • Relationship management
• Leaders with high EQ are better able to build trust, communicate effectively, and inspire and develop followers
• EQ may be especially important for leadership in emotionally demanding situations or people-oriented roles

Leader behaviors and effectiveness

• Leader behavior theories focus on what leaders actually do on the job and how those behaviors impact follower performance and satisfaction
• Two key dimensions of leader behavior are task orientation (initiating structure) and relationship orientation (consideration)
• Effective leaders often exhibit both task and relationship behaviors, adapting their emphasis based on the situation

Task vs relationship orientation

• Task-oriented leaders focus on defining roles, planning work, and monitoring performance to ensure goals are met efficiently
  • They set standards, direct activities, and provide feedback to keep followers on track
  • This emphasis is important for complex or time-pressured tasks, but may neglect follower needs
• Relationship-oriented leaders focus on building trust, showing concern, and supporting follower development
  • They are friendly, approachable, and attentive to follower ideas and feelings
  • This emphasis can increase motivation and teamwork, but may not provide enough direction

Initiating structure

• Initiating structure refers to the degree to which a leader defines and organizes their role and the roles of followers to attain goals
• Leaders high in initiating structure assign tasks, set expectations, and schedule work activities
• They establish clear channels of communication and evaluate performance against standards
• Initiating structure is positively related to follower performance, clarity, and satisfaction with the leader

Consideration for followers

• Consideration refers to the degree to which a leader shows concern and respect for followers, looks out for their welfare, and expresses appreciation and support
• Leaders high in consideration are friendly, approachable, and attentive to follower needs and feelings
• They build rapport, keep followers informed, and provide encouragement and recognition
• Consideration is positively related to follower satisfaction, motivation, and leader-follower relationships

Influence tactics

• Influence tactics are the specific behaviors that leaders use to change follower attitudes and behaviors
• Effective leaders are skilled at selecting and employing the most appropriate influence tactics for a given situation and target
• Influence tactics can be classified as hard (relying on authority and assertiveness) or soft (relying on personal power and relationships)

Rational persuasion

• Rational persuasion involves using logical arguments and factual evidence to convince followers to comply with a request or support a proposal
• Leaders present clear explanations, supporting data, and sound reasoning to demonstrate the merits of their position
• Rational persuasion is most effective when followers are motivated by achievement and have the knowledge to evaluate the arguments

Inspirational appeals

• Inspirational appeals seek to arouse followers' emotions and enthusiasm by appealing to their values, ideals, and aspirations
• Leaders use vivid imagery, stories, and symbols to paint a compelling vision of what could be accomplished
• They express confidence in followers' abilities and link their efforts to a higher purpose
• Inspirational appeals are most effective when followers have a strong need for affiliation and the request is consistent with their values

Pressure and legitimating

• Pressure tactics involve using demands, threats, or persistent reminders to influence followers to comply
  • Leaders may set deadlines, issue warnings, or use their formal authority to insist on compliance
• Legitimating tactics involve invoking rules, policies, or support from higher authorities to establish the legitimacy of a request
  • Leaders may cite job descriptions, precedents, or endorsements from superiors to justify their directives
• Pressure and legitimating are hard tactics that rely on position power and are most effective when used sparingly and with a strong justification

Exchange and coalitions

• Exchange tactics involve offering followers something they want in return for their compliance or support
  • Leaders may promise rewards, favors, or reciprocal support if followers cooperate
• Coalition tactics involve enlisting the aid or endorsement of other people to influence a target to comply
  • Leaders may lobby key stakeholders, build alliances, or use peer pressure to gain support for their initiatives
• Exchange and coalition tactics rely on give and take and the power of numbers to sway followers

Contingency theories

• Contingency theories propose that leader effectiveness depends on the fit between the leader's style or characteristics and the demands of the situation
• Different leader behaviors or traits will be effective in different contexts, and there is no one best style of leadership
• Contingency theories help explain why a leader may be successful in one setting but not in another

Fiedler's contingency model

• Fiedler's model proposes that effective group performance depends on the proper match between the leader's style and the degree to which the situation gives the leader control
• A leader's style is measured by the Least Preferred Coworker (LPC) scale, which assesses whether the leader is more task-oriented or relationship-oriented
• Situational control is determined by leader-member relations, task structure, and position power
• Task-oriented leaders perform best in high and low control situations, while relationship-oriented leaders perform best in moderate control situations

Path-goal theory

• Path-goal theory states that the leader's job is to assist followers in attaining their goals and to provide direction and support needed to ensure that their goals are compatible with the organization's goals
• Leader behaviors can be classified as directive, supportive, participative, or achievement-oriented
• The most effective leadership style depends on follower characteristics (ability, locus of control, needs) and environmental factors (task structure, team dynamics, organizational culture)
• For example, directive leadership is best with ambiguous tasks and inexperienced followers, while participative leadership is best with unstructured tasks and autonomous followers

Normative decision model

• The normative decision model provides a framework for selecting the most appropriate decision-making style based on the situation
• Leaders can make decisions in an autocratic, consultative, or group-based manner
• The optimal style depends on the importance of decision quality, importance of decision acceptance, amount of relevant information possessed by the leader and followers, and likelihood that followers will accept an autocratic decision
• For example, an autocratic style is best for unimportant decisions when acceptance is high, while a group style is best for important decisions when follower commitment is critical

Leader-member exchange (LMX)

• Leader-member exchange theory focuses on the dyadic relationships between leaders and individual followers
• LMX proposes that leaders develop differentiated exchange relationships with their followers, leading to in-groups and out-groups
• High-quality LMX relationships are characterized by mutual trust, respect, liking, and reciprocal influence, while low-quality LMX relationships are characterized by formal, transactional interactions
• LMX quality has important implications for follower outcomes and leader effectiveness

In-group vs out-group

• Members of the leader's in-group receive more attention, support, and rewards than out-group members
  • In-group members have more influence, autonomy, and access to resources
  • They are given desirable assignments, special privileges, and career opportunities
• Out-group members have more distant, impersonal relationships with the leader
  • They receive less support, communication, and recognition
  • They are given routine tasks, closer supervision, and fewer development chances
• Effective leaders should provide all followers opportunities to take on new roles and responsibilities to gain the benefits of in-group status

Antecedents of LMX

• Leader and follower characteristics influence the development of LMX relationships
  • Leaders high in agreeableness, extraversion, and emotional intelligence tend to form higher-quality relationships
  • Followers high in competence, initiative, and similarity to the leader are more likely to be in the in-group
• Contextual factors also shape LMX, such as workgroup size, organizational culture, and leader power
  • Smaller workgroups, collectivistic cultures, and high leader power facilitate the development of differentiated relationships
• LMX relationships tend to be stable over time, but can shift due to changes in the leader, follower, or situation

Consequences of LMX

• In-group members tend to have higher job satisfaction, organizational commitment, and performance than out-group members
  • They receive more support, resources, and opportunities to develop and demonstrate their capabilities
• High-quality LMX is also associated with lower turnover intentions, reduced stress, and increased extra-role behaviors like organizational citizenship
• Leaders benefit from high-quality LMX through increased follower effort, loyalty, and assistance in meeting work goals
• However, differentiated LMX relationships can lead to perceptions of unfairness and resentment among out-group members if the basis for differentiation is not clear and equitable

Charismatic and transformational leadership

• Charismatic and transformational leadership theories focus on how leaders inspire and motivate followers to achieve extraordinary outcomes
• Charismatic leaders have a powerful influence on followers through their personal qualities and actions, while transformational leaders also attend to followers' individual needs and development
• Both types of leaders are skilled at articulating a compelling vision, fostering emotional bonds, and empowering followers to exceed expectations

Attributes of charismatic leaders

• Charismatic leaders exhibit several key attributes:
  • Vision: they articulate an appealing and inspiring vision of the future
  • Rhetorical skills: they are persuasive and emotionally expressive communicators
  • Self-confidence: they show unwavering faith in themselves and their beliefs
  • Dynamism: they are energetic, enthusiastic, and unconventional in their approach
• Charismatic leaders use these attributes to build personal identification with followers and motivate them to internalize the leader's values and goals
• Examples of charismatic leaders include Martin Luther King Jr., Steve Jobs, and Oprah Winfrey

Transformational leadership behaviors

• Transformational leaders engage in four main types of behaviors:
  • Idealized influence: acting as a role model and demonstrating high standards of ethical conduct to build trust and admiration
  • Inspirational motivation: communicating high expectations and using symbols to focus efforts and express important purposes in simple ways
  • Intellectual stimulation: questioning assumptions, reframing problems, and encouraging creativity and innovation among followers
  • Individualized consideration: paying attention to each follower's needs for achievement and growth, and providing coaching, mentoring, and development opportunities
• These behaviors are often contrasted with transactional leadership behaviors like contingent reward and management by exception
• Examples of transformational leaders include Nelson Mandela, Jeff Bezos, and Sheryl Sandberg

Effects on follower motivation

• Charismatic and transformational leaders have powerful effects on follower motivation and performance
• They inspire followers to transcend self-interest for the sake of the team or organization and to perform beyond expectations
• Followers of charismatic/transformational leaders report higher levels of:
  • Trust in the leader
  • Emotional attachment to the leader and the collective vision
  • Willingness to exert extra effort and make personal sacrifices
  • Belief in their ability to contribute to the shared goals
• As a result, charismatic/transformational leadership is associated with higher levels of follower commitment, engagement, creativity, and performance
• However, charisma can also have a "dark side" when leaders exploit follower trust for self-serving ends or make risky decisions based on overconfidence in their vision

Gender and leadership

• Gender and leadership research examines the similarities and differences between male and female leaders and the challenges women face in attaining and succeeding in leadership roles
• While men and women tend to be equally effective leaders overall, they may face different expectations and obstacles due to gender stereotypes and biases
• Understanding these dynamics is important for promoting gender equality and diversity in leadership

Gender stereotypes

• Gender stereotypes are widely held beliefs about the attributes and behaviors typical of men and women
• Common stereotypes relevant to leadership include:
  • Agency: men are seen as more assertive, competitive, and decisive
  • Communality: women are seen as more nurturing, cooperative, and emotionally expressive
• These stereotypes create a mismatch between the traditional male image of leadership and the female gender role, leading to prejudice against female leaders
• Women often face a "double bind" where they are criticized for being either too masculine or not masculine enough in their leadership style

Barriers for women leaders

• Women face numerous barriers to attaining leadership positions and being seen as effective leaders
• Some key barriers include:
  • Lack of access to powerful mentors and sponsors
  • Exclusion from informal networks and "old boys' clubs"
  • Lack of visibility and credit for their contributions
  • Bias in performance evaluations and promotion decisions
  • Work-life balance challenges and assumptions about family responsibilities
• These barriers contribute to the underrepresentation of women in top leadership positions, despite their equal qualifications and performance

Advantages of feminine leadership styles

• While traditional masculine leadership styles emphasize authority, decisiveness, and individualism, feminine leadership styles tend to be more collaborative, nurturing, and egalitarian
• Some advantages of feminine leadership styles include:
  • Empowerment and development of followers
  • Inclusive decision making and diversity of perspectives
  • Interpersonal skills and emotional intelligence
  • Transformational influence and follower dedication
• As organizations become more diverse, globalized, and team-based, the demand for traditionally feminine leadership skills is increasing
• Integrating masculine and feminine styles, or androgynous leadership, may be most effective for the complex challenges facing modern leaders

Cross-cultural leadership

• Cross-cultural leadership research examines how leadership is enacted and perceived across different national and organizational cultures
• Culture influences leader attributes, behaviors, and effectiveness, as well as follower expectations and reactions
• Global leaders need to be aware of cultural