Jeff Pfeffer = $14 billion and $50 billion for leadership.
career advancement stopped short of company’s
Only 30~33% engage in work; even low internationally. expectations, other abilities
Gallup results are not mirage; conference board said job
OB Buzz 11.1: laying off 11K employees (35%); Mean
satisfaction reduced steadily for 25 years; 28~56% want
Business; divisive individual;place fame above employee
to quit; 35% would willingly forego substantial pay raise
welfare /workplace that people wanted to leave before
if direct supervisor got fired; unhappy workers associate
laid off; slashed employment while tripling her salary;
their unhappiness with their direct managers; lengthy
emp. and stockholders were unhappy with her tenure;
list of obscure leadership theories 50~75 years ago will
forced to resign; stock jumped 7%; require employees
not help; not “getting a lot of bag for their buck.”
to bend the rules when cross-selling financial product;
Leader / Leadership (1000s years; Egyptian hieroglyphs) many felt need to create fictitious accounts/open bank
accounts/services clients didn’t need/ask to receive; left
- what leadership is & how it can best be developed.
because of toxic env. by company’s management &
- supervisor to have engaged, satisfied, productive ones. refusal to address problems that emp. brought forth.
Leadership : ability to influence people to set aside their Leadership is subset of effective management;
personal concern and support a larger agenda for while. leadership has always been part of managerial role.
= take people in direction they would not otherwise go. - manager isn’t effective if ignore leadership importance
as a central part of role; effective leadership is not a
- effective leaders motivate people to perform beyond proscribed role; nonmanagers display/enact leadership;
the call of duty and thus enhance group success. effective leaders are always effective managers as well.
- effective leadership makes great things happen and is Great Man Theory of Leadership
best source of sustainable competitive advantage becuz
people are org’s only assets, which can’t be duplicated. - leaders: capable/possessed different traits to followers
- leadership effectiveness is not to exert most influence/ - theory: leader are born/not made, specific traits offers
control, but achievement of high group performance a formula for success (traits do matter in leadership).
over time by engaging people in a manner that makes
- traits alone won’t guarantee effective leadership;
them want to be part of something larger; it’s much
association b/t traits & leadership effectiveness is weak.
more ambitious measure of success than simply getting
high performance; leadership has many misinformation, - traits are good predictor of leadership emergence, not
myths are abundant = recognize what is NOT true. effectiveness (traits are important in influencing others’
perception of leadership); people with certain trait may
- most important achievement are associated with
be more perceived as leaders (not more effective).
people who influenced others to achieve more than
they thought was possible; lack of inspired leadership is - emergence traits: intelligence, dominance, sociability,
responsible for failed careers/unhappy employees. self-monitoring, high energy/drive, self-confidence,
tolerance for ambiguity; still don’t make more effective.
- leadership influences industries/national boundaries;
Industry types : profit, not-for-profit, government, etc. OB Myth 11.2: manager is told to treat everyone same
but people are not same, lead to equity concerns/lower
- 1) leadership clearly matters, people are eager to learn
performance; building close, highquality relationship b/t
on lead more effectively; 2) multitude of how-to lists/
leaders & employee = happy, productive, fully engaged;
model/law make hard to know leadership effectiveness.
[Link].
OB Myth 11.1: leadership failure is having undesirable
LeaderMember Exchange (LMX): quality of relationship
quality/exhibiting toxic behavior than lacking desirable;
b/t employees and their leaders; high LMX rela = strong
narcissism/antisocial tendencies combine to accelerate
leader-employee relationships (positive) = satisfaction
leader derailment; negative personality
with supervisor, employee empowerment, overall job
characteristics /abusive management tech. are
satisfaction, organizational commitment, employee
associated with leaders being removed/having their
citizenship, job performance, pay satisfaction. Increased
employ citizenship behavior, higher employ performanc contingent punishment (provide aversive consequence
rating, increased employee satisfaction, reduced to reduce frequency of undesired behavior).
employee turnover, host of other positive cons.
- strong LMX = more productive, more helpful to others,
- contingent reward behavior results in improved
more satisfied with their job/pay, more commitd to org,
employee attitudes, employee behaviors, good for LMX.
view workplace as more fair, want to stay with current;
more manager can build high LMC, everyone better off. - contingent reward is essential for effective leadership
cuz it links performance and rewards for employee; act
- leader-member exchange is main mechanism through
as feedback loop providing learning for emp./entire org;
which all major leadership approaches work (important
effective manager can show employees positive relation
to see how leadership is linked with emp. performance).
between what they are doing right/reward they receive.
- concern = understand what will improve relationship
- application of contingent punishment is “tried & true”:
b/t employee and leader (critical connection between
1) meet privately, 2) describe the undesirable behavior,
what leaders do and performance of their employees).
3) explain problems undesirable behavior is causing, 4)
- for satisfied, committed workers perform high levels, allow person ample opportunity to ask question/provid
leaders need to enhance LMX relationship. opportunities for clarification, 5) explain consequences
if undesirable behavior does not change, 6) provide
- 3 contributors = contingent rewards provide by leader,
example/time for questions regarding desired behavior.
transformational leadership, degree which leader trust.
- 3 roles of transaction behavior in effective leadership:
- they are also tools for positive relationship/trust b/t
1) establish credibility/trust/respect for manager (help
managers & leaders = transactional + transformational
personal integrity), 2) transactional behaviors form the
Full Range of Leadership: comprehensive approach; foundation on other effective behaviors are built (w/o
implementation of full range of leadership approach trusting relationship, only few will take m. seriously), 3)
that your chances to be successful leader maximize. transactional behaviors establish workplace fairness
(addressing problem quickly/fairly when expectation is
1) addres personal characteristic/transactional behavior not met is vital to establishing/maintaining sense of
- exchange is the basis of transactional leadership fairness/equity among employees; to ensure fairness,
use management-by-exception/contingent punishment.
- approaches (expectancy theory) to motivation view
motivation as process people put forth effort in belief - fundamental error: “overall, he is a good guy. I don’t
thatsomethingpositive will result; we can’t overestimate think he will do those things again.”; ignoring is recipe
importance of trust between manager/employee; you for failure down the road; this wishful thinking presents
might do everything possible to minimize your exposure twofold problem 1)send message to employee behavior
is acceptable (maybe not desirable but acceptable), 2)
- important for manager to build hightrust in employees more problematic; send message that workplace is not
= Transactional leadership: build influence components fair. So, involve early/correct problem before difficulty.
- represent exchange/transaction b/t leader/follower. - Early intervention is rare: 1) confrontation is uncomfor
table for managers so they looks for reason to avoid
- exchange pursue cost-benefit (economic exchange); difficult situation, 2) think behavior will stop on its own;
leader exchange reward/treatment for desirable service manager holds on hope that problem will take itself, 3)
like performance,effort,participation from subordinate; fail to intervene cuz they won’t be supported by their
these exchanges build interpersonal trust (important). manager; early intervention is best course of action and
actually addresses problems, but managers are lulled to
- management-by-exception (taking action only when
self-defeating course of inaction.
problems occur) & contingent reward behavior (reward
employee for doing good job) = most effective behavior; - well transactional leadership behavior provide themsel
help clarify exactly what manager wants, and behavior with excellent foundation; basic performance issues are
manager desires or not; management-by-exception is
addressed, LMX relationship should positive/productive, - when leaders are engaged in TLB, more satisfied, more
employees have sense they are being treated fairly. optimistic about future, less likely to leave jobs, more
likely to trust leader, perform higher levels than others.
- effective managers: ability to get people to go above &
beyond expectation (exceed expectation, not expected). - important consequences of TL = followers give their
transformational leader extra effort/performance
- effectivemanager know that people need to be able to
beyond stated expectations (org. citizenship behavior).
change quick, adapt to new demand, seek new challeng.
Articulating Vision: should be level of employee not
- transactionalleadershipbehavior build solid foundation
contradict; repeat vision often, explain significance of
but they won’t deliver performance beyond typical expc
vision, appeal to audience’s values, use metaphors/anal
- with solid foundation, effective leader use transnormal ogies to help understand vision, use emotional appeal,
leadership to make employees to go beyond the call. speak positive terms, use term we instead of I.
Transformational Leadership Behaviors: seek to arouse Providing Appropriate Model: example; Albert Bandura
& satisfy higher need, to engage full person of follower. social learning model = role modeling sets environment
cue in mind of person that the behavior is important &
- appeal to higher-order needs & seek to motivate other should be emulated; if leader express vision & behaves
to accomplish more than they thought possible. consistently with that vision, messages come together
- engage whole person by asking followers to transcend in employee’s mind + clear message vision is important;
their self-interest for sake of team/org, and by raising beclear about expectation of otherpeople, hold yourself
employee awareness about importance/values of goals; to same standards and expectations to which you hold
also further enhance LMX relationship. other, be consistent in your display of desired behavior,
remember that even small indiscretions can have major
- Phil Podsakoff’s 6 behaviors model: 1) articulating a consequences, perform observable desirable behaviors;
vision (allow leader to identify new oppo. for group), 2) modeling = do what you say you will do (DWYSYWD)
providing appropriate model (set example for employee
to follow), 3) fostering acceptance of group goals (beha. FosteringAcceptanceofGroupGoals:promotecooperatio
promoting cooperation), 4) communicating high-perfor employees/work together toward common goal (setting
mance expectation (excellence, quality, high perfrmnc), superordinate goal : achievable when all exert effort);
5) providing individualized support (leader respects works cuz process brings people together to accomplish
follower and is concerned about personal feeling/need), feats they thought were impossible; group goals give a
6) providing intellectual stimulation (challenge followers sense of purpose, rallying point, common objective to
to reexamine assumption on work/how can be perform) groups; not in internal completion/ political infighting;
getting people to accept group goals works cuz all goals
- thought to be heroic type of leadership performed by have self-managing feature (people can see how they
gift people; not restricted to function, managerial level, are doing by measuring how close to achieving goal
type of org; 6 behavior is responsive to learning; linked they are); guidelines are: set a goal that encourages to
with variety personal and organizational consequences. work together, make sure goal is specific/results-based,
- outcomes: satisfaction with manager, leader-member encourage people to work together by placing closer
exchange (LMX), trust in manager, employee OCB, physically+by encouraging informal contact, continually
employee engagement, job satisfaction, “ performance; remind people that they are all in together that success
1) transformational is associated with LMX, 2) linked to for each person depends on the group’s success.
organizational/individual outcomes, 3) effects can direct Communicatin High-Performanc Expectation: effective
on outcomes and indirect operating through LMX. leaders know that if they expect a lot, they get it; many
- important because enhance relationship b/t leader & set bar low so employees can feel success; low bar will
employees + directly have positive conseq. that are not produce low performance; this works cuz of Pygmalion
directly attributable to LMX relationship. effect (self-fulfilling prophecy) based on premise that
we form certain expectation of people, we communicat
those expectations to others through behavioral cues,
people respond to behavioral cue by adjusting behavior Combination : transactional (good foundation in
to match them, result’s original expectation comes true; place) /transformational (satisfy higher-level needs of
you are providing expectation when you assign tasks; empye).
set high standard for team, communicate high standard
- full range of leadership model = leaders need to use
and your confidence in team member’ ability to achieve
transactional to build trust/ensure fairness in work set.
standards, let people know you are there to help them
accomplish high performance, encourage workers to - then transformational to build on basic fair exchange
seek you for help whenever they feel it would helpful. to get worker to excel by inspiring them with treatment
that goes beyond basic exchange of treatment for perf.
Providing Individualized Support: feel valued, capable,
liked; mutual linking is best for effective relationship, - paire two allows leaders to be maximally effective; can
individual support is key for mutualliking/LMX; empathy learn/do; this process builds strong LMX relationship.
allows consider what another person may need (require
being attuned to employees’ needs+pay attention what Leadership is complex & many information to digest.
they say/do; genuinely caring/actvely show compassion, - key = increase competence across 3D of leadership;
encouraging continuous development/growth of epyee, 1) personal characteristics, 2) transactional behaviors,
making interpersonal connections with employees on 3) transformational behaviors
nonwork activities, sending message “I care about you&
am looking out for your best interest.”; not complex but - strategize how to bring transformational behaviors to
payoff is great; individualized support = high employee life in my situation; can you identify/transfer vision that
citizenship behavior, high employee job satisfaction, people want to sign on for? What are your collective
enhanc organizational commit, improved performance. goals? How are you supporting others? In what ways
are you seeking to provide intellectual stimulation to
Providing Intellectual Stimulation: refuse to accept associates?; Full range of leadership approach goes
remarks like “that’s way we’ve don’t it”/“i’m not sure, beyond a simple cookbook recipe + provides evidence-
that’s not my job”; without intellectual stimulation, based model of leadership effectiveness that can &
employees become cogs in wheel, resigned to perform should guide thinking on how to go forward in position.
jobs with little passion/inspiration; help build stronger
LMX relationship cuz it engenders increased trusts + Positive Leadership: focus on leadership behaviors and
improves overall relationship b/t leader and follower; interpersonal dynamics that increase followers’ confide
give $50 to report back; important to keep eye out for nce and result in positive outcomes, beyond task compli
innovative/useful ideas; real power comes from org of ance, such as motivating followers to go beyond expect
people observing what’s going on around them + feel ations, developing themselves in positive ways, and perf
free to share observation; put idea gatherin on agenda, orming organizational citizenship behavior; approaches:
make it safe for others to experiment, create envionrm. 1) Ethical leadership (demonstration of normatively
where new ideas are encouraged/implemented, honor appropriate conduct w/ personal actions/interpersonal
risk takers, eliminate firehosing (dousing good ideas), relationships, and promotion of conduct to followers w/
debrief every failure/success, encourage possibility 2-way communication, reinforcement, decision-making;
thinking, send message to other “if change assumption” seek right thing + unimpeachable manner; influence foll
OB Buzz 11.2: people with vision are inventors (Edison, owers to engage in ethical behaviors through behavioral
Ford, Steve Jobs, Mary Barra); but Elon Musk has exord. modeling and transactional leadership behaviors of rew
vision/ability to make visions frequently into reality; arding, communicating, contingent punishing)
started online banking [Link] -> PayPal -> $1.5 billion; 2) Servant leadership (put need of follower/stakeholder
Musk accelerated; his vision = change world/humanity first; #1priority is to serve; servantleader is servant first;
by reducing global warming through sustainable energy leadership beings with natural feeling of wants to serve;
production/consumption, reduce risk of human extinct then conscious choice brings one to aspire to lead; 10
by making life “multiplanetary.” characteristics = listening, empathy, healing, awareness,
persuasion, conceptualization, foresight, stewardship,
commitment to growth of others, building community;
first facilitating development/well-being of followers ~ cross-functional team, managing internal project such
organizational goals will be achieved on long-term basis; as company event/office renovation, working on project
rather than being focal point, servant leader views lead with community/social organization.
ership role as one of supporting/enabling employees.
- increase their exposure to diversity in people/contexts
3) Authentic leadership (deeply aware of how they (people are different from leader in global assignment;
think/behave/are perceived by others are being aware working across cultures helps leader see their works
of their own/others’ value/moral perspective/strength/ from different perspectives; challenge assumptions one
knowledge; are confident, optimistic, hopeful, resilient; have; taking assignment in another country, managing
action is guided by leaders’ true self as reflected by core work group made of people with racial/ethnic/religious
values, beliefs, thoughts & feelings, as opposed to env. backgrounds different from your own, managing group
contingencies/pressures from others; heart of all + consists of expatriates from other countries, working on
leadership approach (transformational,ethical,servant). training/development project design to help employees
make transitions to global assignments.
+) Analysis of NewForms of PositiveLeadership: unclear
if they do better on explaining outcomes than full-range + Hardship = significant valuable to develop leadership
of leadership approach/transformational leadership; 3 capabilities but is hardest to synthesize (difficult situatio
approaches offer smaller benefit than transformational; ns which manager must overcome substantial obstacles
ethical leadership provides additional benefit when we to achieve results; involve situations most people quit,
try to predict employee theft/similar behavior; servant blame others, play victim and avoid challenge)
leadership is most useful addition to transformational;
- persist & find new ways to adapt to reality of situation,
authentic is least improve on transformational.
learning is powerful; ALL great leaders face obstacles at
Experience/Hands-On Learning are important develop one time or another; turn obstacles into learning oppor,
leadership capabilities; five types of experiences: more likely to strengthen hardiness/capability to lead.
- job transitions (broadening immediate role/training; First = it is never too early to start.
being new/inexperienced member of team, move to
Second = it is your responsibility, not a company’s, to
general management job, moving from a line job to a
develop your leadership behaviors; it will only continue
corporate staff role, lateral move to other department)
to increase as job security becomes rarer as time goes.
- creating change (challenge people to start something
Third = it is important to realize that great deal is known
new/fix long-standing problems; allows individuals to
about what to do and how to do it.
practice leadership behaviors like transformational to
influence others to engage in the work differently; come + making yourself into effective leader will take years;
with specific/challenging goals; launching a new need a long-term plan to be effective = Plan =
product/project/system, dealing with business crisis,
hiring new staff, resolving subordinate performance 1) Initial diagnosis (what do you value? What do you
problem, supervising liquidation of product/equipment) want out of your career? Where do you see yourself in
5, 10, and 20 years?)
- highlevel of responsibility (take on visible project/work
outside regular role to get else’s role; taking corporate 2) Assessment : seek feedback from others and use as
assignment w/ tight deadline, representing organization many tools as possible (personality measures, career
to media/influentialoutsiders, managing acrosslocation) preferences) to enhance understanding of yourself.
- managing boundaries (one lacks formal authority; 3) Design : although it’s impossible to create detailed
challenge managers to interface with key stakeholders plan for next 20 years, you can seek out opportunities
outside firm like customers/unions; manager learns to that will help you fill in gaps in your background
manage “laterally” requiring develop new skillset; compared to requirements of positions you seek.
importance is honing one’s skills in influencing others 4) Implementation : take advantage of opportunities
who don’t directly report to manager like cross-funct; when they present themselves; only get a few major
presenting proposal to top management, serving on chances in their lifetimes, so when key mentoring
opportunities, job rotation chances, global assignments
present themselves, seize it for personal development.
5) Support : continually seek out feedback/development
opportunities; many successful leaders have had to take
wide variety of assignment to understand business/to
increase their visibility in their corporate environments.
6) Evaluation : every few years, measure your progress;
are you ahead of schedule or behind? Why? What
opportunities should you be seizing that you are not?
Only through ongoing evaluation will you continue to
develop your leadership abilities.