The earliest theories of leadership were the Great Man Theories, which emerged in the late 1800s. ), Leadership (pp. Before we begin, we need to put leadership theory and practice in the context of history, to understand how the field of study has evolved. You either have charisma or you don’t. Journal of Applied Psychology, 92, 321–330. In praise of selflessness: Why the best leaders are servants. Journal of Applied Psychology, 82, 827–844. Erdogan, B., Liden, R. C., & Kraimer, M. L. (2006). What are the characteristics of transformational leaders? Ehrhart, M. G. (2004). http://www.time.com/time/printout/0,8816,1077300,00.html, Next: 10.7 Developing Your Leadership Skills, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process. While each leadership approach focuses on a different element of leadership, effective leaders will need to change their style based on the demands of the situation as well as using their own values and moral compass. Some employees may genuinely dislike the leader and may not value the rewards in the leader’s possession. Academy of Management Journal, 43, 738–748. When he founded Starbucks, he became an industry pioneer in providing health insurance and retirement coverage to part-time as well as full-time employees (Shamir & Eilam, 2005). A score of 7+ indicates a high-quality LMX in terms of loyalty. The problem, of course, is that not all employees have a high-quality relationship, and those who are in the leader’s out-group may suffer as a result. Authentic leadership requires understanding oneself. All of these companies had what he calls Level 5 leaders who build organizations through their personal humility and professional will. New York: Harper & Row. How would such a style be developed. Transformational leadership theory is a recent addition to the literature, but more research has been conducted on this theory than all the contingency theories combined. Herold, D. M., Fedor, D. B., Caldwell, S., Liu, Y. What does it mean to be a servant leader? In these relationships, the leader and the member are both ready to go above and beyond their job descriptions to promote the other’s ability to succeed. He marks the day he started asking employees what he can do for them as the beginning of his company’s new culture. One example of an authentic leader is Howard Schultz, the founder of Starbucks coffeehouses. Leaders such as Barack Obama, John F. Kennedy, Ronald Reagan, Mahatma Gandhi, Mustafa Kemal Ataturk (founder of the Republic of Turkey), and Winston Churchill are viewed as charismatic. Employees can seek feedback to improve their performance, be open to learning new things on the job, and engage in political behaviors such as flattery (Colella & Varma, 2001; Maslyn & Uhl-Bien, 2001; Janssen & Van Yperen, 2004; Wing, et. Piccolo, R. F., & Colquitt, J. Further assessment of Bass’s (1985) conceptualization of transactional and transformational leadership. Should you worry if you do not have a high-quality relationship with your manager? Without this, the follower will not want to do what the leader desires. (2007). Greenleaf, R. K. (1977). Employee happiness is seen as an end in itself, and servant leaders sometimes sacrifice their own well-being to help employees succeed. Frese, M., Beimel, S., & Schoenborg, S. (2003). Leader-member exchange (LMX) theory proposes that the type of relationship leaders have with their followers (members of the organization) is the key to understanding how leaders influence employees. In high-quality LMX relationships, the leader forms a trust-based relationship with the member. _____ I like my supervisor very much as a person. A mix of classical management theories and contemporary leadership theories are highlighted and an evaluation of the application of these theories is given. The effects of transformational and change leadership on employees’ commitment to a change: A multilevel study. According to leader-member exchange (LMX) approach, the unique, trust-based relationships leaders develop with employees is the key to leadership effectiveness. Colella, A., & Varma, A. Their high levels of performance may not be a surprise because they may receive higher levels of resources and help from their managers as well as more information and guidance. Although the contemporary theories tend to focus on human behaviour and motivation on workplace, there is no best strategy. Back To: LEADERSHIP What are Contemporary Approaches to Leadership? This is the Trait Theory. Leadership Quarterly, 16, 315–338. They are introspective, understand where they are coming from, and have a thorough understanding of their own values and priorities. Leadership. Flexibility 7. _____ My supervisor is the kind of person one would like to have as a friend. What does it mean to be an authentic leader? This may be a societal good, such as starting a community center or improving air quality, or a more personalized good, such as helping direct reports reach their own potential. Personnel Psychology, 56, 671–697. Because of all the help, support, and guidance they receive, those employees who have a good relationship with the manager are in a better position to perform well. Best-selling author Jim Collins studied companies that had, in his opinion, gone from good to great, and he found they had one thing in common (Collins, 2001). Good personality 2. Journal of Applied Psychology, 92, 202–212. A longitudinal investigation of newcomer expectations, early socialization outcomes, and the moderating effects of role development factors. Do you know any leaders whose style resembles servant leaders? “Can you see the real me?” A self-based model of authentic leader and follower development. >>Read more in part 2 of this series. The earliest theories of leadership were the Great Man Theories, which emerged in the late 1800s. In the shadow of the boss’s boss: Effects of supervisors’ upward exchange relationships on employees. _____ My supervisor is a lot of fun to work with. In addition to a clear focus on having a moral compass, servant leaders are also interested in serving the community. Given all they receive, these employees are motivated to reciprocate to the manager, and therefore they demonstrate higher levels of citizenship behaviors such as helping the leader and coworkers (Ilies, et. The authentic leadership approach embraces this value: its key advice is “be yourself.” Think about it: We all have different backgrounds, different life experiences, and different role models. But how do you end up developing such a high-quality relationship with the leader? Journal of Applied Psychology, 92, 309–320. Leader-member exchange and its dimensions: Effects of self-effort and other’s effort on relationship quality, Journal of Applied Psychology, 86, 697–708. Trait Approaches to Leadership, 10.4 What Do Leaders Do? Contemporary approaches to leadership include transformational leadership, leader-member exchange, servant leadership, and authentic leadership. _____ My supervisor defends my work actions to a superior, even without complete knowledge of the issue in question. Leaders who follow the servant leadership approach create a climate of fairness in their departments, which leads to higher levels of interpersonal helping behavior (Erhart, 2004). Authentic leadership and eudaemonic well-being: Understanding leader-follower outcomes. â¢ Trait theory of leadership â¢ Behavioral theories of leadership â¢ Contingency model of leadership â¢ Contemporary models of leadership Leadership can be explained by exploring these four different approaches. Employees also have an active role in developing the relationship. _____ My supervisor would defend me to others in the organization if I made an honest mistake. Diplomacy 9. The early 21st century has been marked by a series of highly publicized corporate ethics scandals: between 2000 and 2003, we witnessed Enron, WorldCom, Arthur Andersen, Qwest, and Global Crossing shake investor confidence in corporations and leaders. As a child, Schultz witnessed the job-related difficulties his father experienced because of medical problems. What are the differences (if any) between a leader having a high-quality exchange with employees and being friends with employees? Dansereau, F., Jr., Graen, G., & Haga, W. J. Authentic leadership is viewed as a potentially influential style because employees are more likely to trust such a leader. As you’ll see in several of the theories below, many theories would answer the question of Hitler with a firm no: Hitler was a dictator, but not a leader. Bass, B. M. (1985). Greenwich, CT: Information Age Press. Goodwin, D. K. (2005, June 26). (2007). According to most advocates, this leadership style is presently common in the modern societal setting. Contemporary approaches to leadership include transformational leadership, leader-member exchange, servant leadership, and authentic leadership. The most prominent leadership theories today build on this understanding, and begin to integrate the perspective of followers and the contextual circumstances in which leaders and followers interact. An example of an authentic leader is Howard Schultz, the founder of Starbucks coffeehouses. Thus, one key characteristic of authentic leaders is that they are self-aware. Journal of Applied Psychology, 87, 611–628. Journal of Applied Psychology, 89, 755–768. A score of 3 to 4 indicates a low LMX in terms of liking. They can also test to see whether the employee is trustworthy by delegating certain tasks when the employee first starts working with the manager (Bauer, et. Academy of Management Journal, 46, 703–714. What LMX theory implies for leaders is that one way of influencing employees is through the types of relationships leaders form with their employees. However, transactional leaders ensure that employees demonstrate the right behaviors because the leader provides resources in exchange (Bass, 1985; Burns, 1978). Interestingly, high performance on the employee’s part does not seem to be enough to develop a high-quality exchange with the leader. Ilies, R., Nahrgang, J. D., & Morgeson, F. P. (2007). al., 2005; Sparrowe, 2005). The Great Man concept evolved into trait-based theories of leadership, which defined leadership by a leader’s characteristics, most of which were considered innate. Learn more: Download our Comprehensive Doctoral Program Booklet. by Emeka. That seems to depend on many factors. Research shows that high-quality LMX members are more satisfied with their jobs, more committed to their companies, have higher levels of clarity about what is expected of them, and perform at a higher level (Gerstner & Day, 1997; Hui, et. Even though he had no idea he would have his own business one day, the desire to protect people was shaped in those years and became one of his foremost values. (2004). For example, when they succeed, the manager is more likely to think that they succeeded because they put forth a lot of effort and they had high abilities, whereas for low LMX members who perform objectively well, the manager is less likely to think so (Heneman, 1989). (2008). Support from the top: Supervisors’ perceived organizational support as a moderator of leader-member exchange to satisfaction and performance relationships. However, leaders who have adopted this approach attest to its effectiveness. Erdogan, B., Kraimer, M. L., & Liden, R. C. (2004). Kraimer, M. L., Wayne, S. J., & Jaworski, R. A. He notes that Level 5 leaders are modest and understated. What are the advantages of adopting such a leadership style? al., 2000). Add your score for 7, 8, 9 = _____ This is your score on the Contribution factor of LMX. al., 1994). Journal of Applied Psychology, 80, 468–478. Journal of Applied Psychology, 81, 219–227. If the leader is not well liked in the company and is known as abusive or unethical, being close to such a person may imply guilt by association. Journal of Applied Psychology, 85, 407–416. As frequent contributors at Forbes.com, our team offers fresh insights for business leaders. Out-group members are less compatible with the leader; they may hold dissenting opinions, have clashing personalities, or be less willing to take on extra assignments. Good to great: Why some companies make the leap…and others don’t. al., 1995). _____ I do work for my supervisor that goes beyond what is specified in my job description. al., 2006; Erdogan, et. Behavioral Approaches to Leadership, 10.5 What Is the Role of the Context? Contemporary approaches to leadership include transformational leadership, leader-member exchange, servant leadership, and authentic leadership. al., 2000; Settoon, et. Leader-member exchange and member performance: A new look at individual-level negative feedback seeking behavior and team-level empowerment climate. A leader is crucial to the success of every team. Active management by exception involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring. Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. Chapter 1: Introduction to Principles of Management, 1.1 Introduction to Principles of Management, 1.2 Case in Point: Doing Good as a Core Business Strategy, 1.4 Leadership, Entrepreneurship, and Strategy, 1.5 Planning, Organizing, Leading, and Controlling, 1.6 Economic, Social, and Environmental Performance, 1.7 Performance of Individuals and Groups, 1.8 Your Principles of Management Survivor’s Guide, Chapter 2: Personality, Attitudes, and Work Behaviors, 2.2 Case in Point: SAS Institute Invests in Employees, 2.6 The Interactionist Perspective: The Role of Fit, 2.8 Developing Your Positive Attitude Skills, Chapter 3: History, Globalization, and Values-Based Leadership, 3.1 History, Globalization, and Values-Based Leadership, 3.2 Case in Point: Hanna Andersson Corporation Changes for Good, 3.3 Ancient History: Management Through the 1990s, 3.4 Contemporary Principles of Management, 3.6 Globalization and Principles of Management, 3.7 Developing Your Values-Based Leadership Skills, Chapter 4: Developing Mission, Vision, and Values, 4.1 Developing Mission, Vision, and Values, 4.2 Case in Point: Xerox Motivates Employees for Success, 4.3 The Roles of Mission, Vision, and Values, 4.4 Mission and Vision in the P-O-L-C Framework, 4.7 Crafting Mission and Vision Statements, 4.8 Developing Your Personal Mission and Vision, 5.2 Case in Point: Unnamed Publisher Transforms Textbook Industry, 5.3 Strategic Management in the P-O-L-C Framework, 5.5 Strategy as Trade-Offs, Discipline, and Focus, 5.6 Developing Strategy Through Internal Analysis, 5.7 Developing Strategy Through External Analysis, 5.8 Formulating Organizational and Personal Strategy With the Strategy Diamond, 6.2 Case in Point: Nucor Aligns Company Goals With Employee Goals, 6.4 From Management by Objectives to the Balanced Scorecard, 6.5 Characteristics of Effective Goals and Objectives, 6.6 Using Goals and Objectives in Employee Performance Evaluation, 6.7 Integrating Goals and Objectives with Corporate Social Responsibility, Chapter 7: Organizational Structure and Change, 7.2 Case in Point: Toyota Struggles With Organizational Structure, 7.4 Contemporary Forms of Organizational Structures, 7.6 Planning and Executing Change Effectively, 7.7 Building Your Change Management Skills, 8.2 Case in Point: Google Creates Unique Culture, 8.5 Creating and Maintaining Organizational Culture, 8.7 Developing Your Personal Skills: Learning to Fit In, 9.2 Case in Point: Networking Powers Relationships, 9.3 An Introduction to the Lexicon of Social Networks, 9.4 How Managers Can Use Social Networks to Create Value, 9.5 Ethical Considerations With Social Network Analysis, 9.6 Personal, Operational, and Strategic Networks, Chapter 10: Leading People and Organizations, 10.2 Case in Point: Indra Nooyi Draws on Vision and Values to Lead, 10.3 Who Is a Leader? A score of 7+ indicates a high-quality LMX in terms of liking. The essence of transformational theories is that leaders transform their followers through their inspirational nature and charismatic personalities. Learn about the difference between transformational and transactional leaders. If minorities, women, or people with disabilities routinely identify as out-group members, the leader should ask the question, “What is required to be an in-group member here, and are we creating unintentional barriers for others?”. Burns identified two types of leadership. Examples of transformational business leaders include Steve Jobs of Apple; Lee Iacocca, who transformed Chrysler in the 1980s; and Jack Welch, who was the CEO of General Electric for 20 years. In other words, their efforts to help others are not restricted to company insiders, and they are genuinely concerned about the broader community surrounding their company (Greenleaf, 1977; Liden, et. These relationships develop naturally because of the work-related and personal interactions between the manager and the employee. Sources of support and expatriate performance: The mediating role of expatriate adjustment. A score of 5 to 6 indicates an average LMX in terms of loyalty. Research shows that transformational leadership is a powerful influence over leader effectiveness as well as employee satisfaction (Judge & Piccolo, 2004). These relationships have an important influence over employee attitudes and behaviors. Journal of Applied Psychology, 92, 269–277. (Perhaps you can see one primary fault with these theories, just from their name: they assumed only half the world’s population could even be considered for leadership.) Mustafa Kemal Ataturk, the founder of Turkish Republic and its first president, is known as a charismatic leader. Trust is the belief that the leader will show integrity, fairness, and predictability in his or her dealings with others. 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