Chapter 13:

Leadership
I. Trait theories
- Trait theories of leadership focus on personal qualities and characteristics.
- Big Five framework:
o Extraversion: the most predictive trait of leadership but it relates to
the way leaders emerge than their effectiveness  better to lead
groups of passive employees.
o Conscientiousness and openness to experience: may predict
leadership, especially leader effectiveness.
 Leaders who are extraverted and conscientious have a big advantage.
- Dark Side personality traits of Machiavellianism, narcissism, and
psychopathy:
o Midrange score: optimal leadership
o Low or high score: ineffective leadership.
 High scores and high emotional stability can increase leadership
emergence.
- Emotional intelligence:
o People who score high in EI are more likely to emerge as leaders.
 More empathetic
 Better emotional managing and displaying
 Traits can predict leadership emergence better than effectiveness.
II. Behavioral theories
- Behavior theories of leadership: proposing that specific behaviors
differentiate leaders from nonleaders.
- 2 dimensions accounted for most of the leadership behavior described by
employees: initiating structure and consideration
o Initiating structure (task-oriented): the extent to which a leader defines
and structures his or her role and those of the subordinates to facilitate
goal attainment. (divide tasks for them and their teammates to achieve
common goals)
o Consideration (people-oriented): the extent to which a leader has job
relationships that are characterized by mutual trust, respect for
 employees’ ideas, and regard for their feelings (they can maintain
good relationships, respect, and sympathize with employees)
- There are international differences in the preferences for initiating structure
and consideration.
o High in consideration succeeded best in multilateral decision-making
countries. (Brazil > France)
o High in initiating structure succeeded best in bureaucratic countries.
o Both dimensions are important in some cultures: effective leaders
must be polite, considerate, unselfish and have a high-performance
orientation.
III. Contingency theories
- Different leadership styles suit best for different situations
1. The Fiedler Model
- Fiedler contingency model proposes that group performance depends on the
proper match between the leader’s style and the degree to which the
situation gives the leader control.
- Assuming individual leadership styles to be stable and permanent.
Finding leadership style:
- The least preferred coworker (LPC) questionnaire identifies whether a
person is task-oriented or relationship-oriented by asking respondents to
think of all the coworkers they have ever had and describe the one they least
enjoyed working with.
o If you describe the person in favorable terms, you are relationship
oriented.
o If you describe the person in unfavorable terms, you are task oriented.
Finding organizational situation
- Based on 3 situational dimensions:
o The leader-member relationship is the degree of confidence, trust, and
respect that members have in their leader.
o Task structure is the degree to which the job assignments are
regimented (structured or unstructured). (clear/ambiguous)
o Position power is the degree of influence a leader has overpower
variables such as hiring, firing, discipline, promotions, and salary
increases.
Finding a suitable leadership style for each situation
 2. Situational leadership theory
- Situational leadership theory focuses on followers’ readiness to accomplish a
specific task.
- Leader should choose 1 of 4 behaviors based on followers’ readiness.
FOLLOWERS LEADER
Ability Willingness
No No Clear and specific instruction
High task orientation: follower’s lack of ability compensation
No Yes
High relationship orientation: leader’s desires acceptance
Yes No Supportive and participative styles
Yes Yes No need to do, hehe.
- Disadvantages
o Acknowledges the importance of followers
o Assume that leaders can compensate for followers’ inability and
demotivation.
3. Path-Goal Theory
- Path-goal theory states that it is the leader’s job to assist followers in
attending their goals and to provide the necessary direction and/or support to
 ensure that their goals are compatible with the overall objectives of the
group or organization.
- Prediction:
o directive leadership: ambiguous and stressful tasks  redundant with
skilled and experienced employees
o Supportive leadership: structured tasks
- Disadvantage: intuitive appeal
 Cautious application
4. Leader-Participation Model
- Leader-participation model provides a set of rules to determine the form and
amount of participative decision making in different situations.
IV. Contemporary theories of leadership
- It is used to discover unique ways leaders emerge, influence, and guide their
employees and organizations.
1. Leader-member exchange theory
- Leader-member exchange theory supports leaders’ creation of ingroups and
outgroups; subordinates with ingroups status have higher performance
ratings, less turnover, and greater job satisfaction
o ingroup employees: receive more attention, trust, and privileges from
the leader.
o Outgroup employees: others
- Ingroup members:
o Similar demographic, attitude, and personality characteristics with
leaders.
o Higher levels of competence
- Disadvantages:
o Negative effects on both ingroups and outgroups.
o Lower work attitudes and performance
o Strain relationship between employees and leaders.
2. Charismatic leadership
- Charismatic leadership theory states that followers make attributions of
heroic or extraordinary leadership abilities when they observe certain
behaviors in others.
- Use communication skills, persuasiveness, and charm to influence people
- Characteristics
o Vision and articulation
 o Personal risk
o Sensitivity to others: high EI
o Unconventional behavior: think outside of the box
V. Responsible leadership
- contemporary concepts that explicitly address the role of leaders in creating
ethical organizations
1. Authentic leadership
- Authentic leaders know who they are, know what they believe in and value,
and act on those values and beliefs openly and candidly.
- Followers trust them and see them as ethical people.
- Increase teamwork, team productivity, and firm performance.
- Authenticity is important for leaders and followers.
2. Ethical leadership
- It is crucial for leaders to create ethical expectations for all members
o Direct followers
o Spread ethical considerations to all command structures.
- Abilities of ethical leadership
o Increase job satisfaction, motivation, performance
o Change employees’ perceptions of equitable actions
o Increase awareness of moral issues  increase customer service
outcomes.
- Socialized charismatic leadership states that leaders convey values that are
other-centered vs self-centered and who role-model ethical conduct.
- They can bring employee values in line with their own values through words
and actions.
- Top executives need to
o set high moral ethical standards for the organization
o demonstrate in their own behaviors
o encourage and reward integrity in others.
- Values and norms change by cultures  leaders have to express their ethical
beliefs and persuade others to accept it.
- Positive and negative ethical statements can be equally effective when they
deliver clear, moral, inclusive, goal-setting statements with persuasiveness.
- Disadvantage: can lead to abusive supervision
3. Abusive supervision
- abusive supervision is hostile both verbally and nonverbally.
 - Factors related to abusive supervision
o All forms of justice are negatively related to AS
o Agreeableness and conscientiousness are negatively associated with
perceptions of AS
4. Servant leadership
- Servant leadership marked by going beyond the leader’s own self-interest
and instead focusing on opportunities to help followers grow and develop
- Advantages:
o Improve restaurant performance and employee attitude and
performance by creating a culture of service
- OCB: organizational citizenship behaviors – all constructive and positive
actions that employee made that not included in the formal tasks.
o Increase employee OCB when they are encouraged to focus on being
dutiful and responsible
o Increase team potency  higher team performance
o increase levels of creative performance.
VI. Positive leadership
- the intentional development of positive leadership environments
1. trust
FDI=β 0 + β 1 ( annualGDP growth ) + β 2 ( GDP per capita ) + β 3 ( inflation )+ β 4 (Trade ) + β 5 ( estimated goverment effect

FDI=β 0 + β 1 ( annualGDP growth ) + β 2 ( GDP per capita ) + β 3 ( inflation )+ β 4 (Trade ) + β 5 ( estimated goverment effect