W4DQ

Prior to completing this assignment read Chapter 7: Leadership and Communication in the required text, as well as the article “

Impact of leader’s emotional intelligence and transformational behavior on perceived leadership effectiveness: A multiple source view”

. This discussion includes two parts:”. This discussion includes two parts:

Part One: First, based on your first name, discuss the assigned theory/framework thoroughly, explaining what it concludes as well as how it could potentially impact an organization. Please do not use quotes. Explain what you understand about what the text states about the theory/framework in your own words and add citations to support your statements.

(A-D) ethical leadership theory
(E-G) spiritual leadership theory
(H-K) authentic leadership theory
(L-N) implicit leadership theory
(O-P) leader–member exchange theory
(Q-S) situational leadership contingency model
(T-V) transformational leadership framework
(W-Z) transactional leadership framework

Part Two: Chapter 7 of your text discusses leadership applied to multiple behaviors/indicators, including style, derailment, power, diversity, and communications. Considering all of these variables, what areas do you think are most important for you to accommodate into your own development to support your career and life goals? Why?

Your post should be between 350 and 400 words.

Impact of Leader’s Emotional
Intelligence and Transformational
Behavior on Perceived Leadership
Effectiveness: A Multiple
Source View

Deepika Dabke1

Abstract
Emotional intelligence (EI) plays a pivotal role in leadership effectiveness. The present research studied
the relationship between performance-based EI and transformational leadership as exhibited by partici-
pants in the work role with leadership effectiveness as perceived by their superiors and subordinates.
The sample comprised 200 managers who were administered the Mayer, Salovey, and Caruso EI Test
and the Multifactor Leadership Questionnaire (MLQ) 5X scale. Superior’s perception of leadership
effectiveness was measured via the MLQ 5X scale as well as effectiveness scale developed by Shanock
and Eisenberger (2006). Supervisory leadership survey developed by Kerr, Garvin, Heaton, and Boyle
(2006) was administered to subordinates to assess their perception of leadership effectiveness. A
Pearson’s correlation coefficient revealed that there was a significant positive correlation between sub-
ordinates’ perception of leadership effectiveness and overall EQ (r = 0.27, p < 0.01, n = 200), strategic EQ (r = 0.24, p < 0.01, n = 200), and experiential EQ (r = 0.20, p < 0.01, n = 200). All transformational behaviors showed a significant positive correlation with perceived leadership effectiveness (r ranging from 0.42 to 0.22, p < 0.01). In case of superiors’ rating, a significant positive correlation was seen between perceived leadership effectiveness and strategic EQ (r = 0.18, p < 0.01) as well as all trans- formational behaviors (r ranging from 0.61 to 0.49, p < 0.01). Multiple regressions analysis results led to the emergence of transformational leadership behaviors (β = 0.15, ΔR2 = 0.19, p < 0.01) as a posi- tive predictors of subordinate’s leadership effectiveness explaining a variance of 23 percent. In case of superior’s perception of leadership effectiveness, transformational behaviors explained a variance of 48 percent (β = 0.27, ΔR2 = 0.19, p < 0.01). In both the cases, EI of the leader failed to emerge as a predic- tor of perceived effectiveness.

Keywords
Ability-based emotional intelligence, transformational leadership, perceived leadership effectiveness,
superior rating, subordinate rating

1 Faculty, IBS Business School, Mumbai.

Business Perspectives
and Research

4(1) 27–4

 2016 K.J. Somaiya Institute of

Management Studies and Research
SAGE Publications

sagepub.in/home.nav
DOI: 10.1177/2278533715605433

http://bpr.sagepub.com

Article

Corresponding author:
Deepika Dabke, Faculty, IBS Business School, Mumbai.
Email: deepikadabke@hotmail.com

28 Business Perspectives and Research 4(1)

Emotions are one of the most fascinating aspects of human existence. They play a central role in inter-
personal relationships due to their strong bearing on thoughts and behaviors. One scientific body of
research that espouses the positive role of emotions with interpersonal effectiveness is emotional intel-
ligence (EI). Past research has provided adequate evidence to highlight the association between EI and a
number of behavioral outcomes. The idea that higher EI can help people have an edge over others is very
appealing (Mayer, Salovey, & Caruso, 2002). People with higher EI are likely to have a natural advan-
tage while handling interpersonal relationships as they can read body language of others in a more
precise manner. They are also good at picking up emotional cues during interactions. A good empathic
listening helps them create a better rapport with the other party. High EI also assists people in regulating
their own emotions in a better manner. Needless to say such people can be expected to be more success-
ful in interpersonal spheres of their life and careers, and manage greater cohesion in various roles. This
appeals one to postulate that EI as ability would help people carry out assigned social roles more effec-
tively and consequently earn them greater reverence.

Emotional Intelligence

Thorndike (1920) had long ago identified social intelligence as a dimension of intelligence. He described
it as “an ability to understand and manage men and women, boys and girls, to act wisely in human rela-
tions.” Thorndike’s definition referred to the individual’s ability to understand and manage their inter-
personal relations, an essence of EI as understood today.

Ever since the concept of EI has gained importance, people have expressed mixed opinions about its
viability. EI has been said to matter “twice as much as IQ” (Goleman, 1998, p. 31). Yet, it has been
described as an “elusive concept” (Davies, Stankov, & Roberts, 1998, p. 989). Some have claimed that
EI provides a basis for competencies important in almost all jobs (Cherniss, 2000, p. 10). But “EI appears
to be more myth than science” (Matthews, Zeidner, & Roberts, 2004, p. 547). Part of these mixed feel-
ings is due to a lack of consensus on the definition of the term.

Mayer and Salovey (1990) define EI as, “the ability to monitor one’s own and other’s thinking and
actions.” Salovey et al. (2001) subsequently widened the scope to include an individual’s ability to per-
ceive emotions accurately, appraise, and express them; the ability to generate emotions that facilitate
thoughts; the ability to understand emotion and regulate emotions to promote emotional and intellectual
growth. The current study uses this definition as an operational definition of EI.

Various facets and components of EI have been claimed to contribute to success and productivity in
the workplace. EI is claimed to predict occupational success because it influences one’s ability to succeed
in coping with environmental demands and pressures (Bar-On, 1997). Workers endowed with high EI
are also claimed to be particularly adept at designing projects that involve infusing products with feel-
ings and aesthetics (Mayer & Salovey, 1997). Bar-On (1997) reports that EI predicts a self-report mea-
sure of sense of competence on the job (r = about 0.50). In a direct test of the effects of EI on performance,
Carmeli (2003) observed that emotionally intelligent managers in Israel displayed superior performance
to their lower EQ peers both in terms of contextual (teamwork and cohesiveness) performance and task
performance (quality of job completed). EI has been linked to the use of transformational leadership
(TL) (Dabke, 2012). In a study conducted by Lopes, Salovey, and Straus (2003), analysts and clerical
staff of the finance department showing higher levels of EI on the Mayer, Salovey, and Caruso EI test
(MSCEIT) test were found to achieve greater ranks and better performance bonus than those scoring
lower on the test. Thus, the evidence supporting the positive role of EI in workplace outcomes is quite
compelling.

Dabke 29

EI is explained either by the ability model proposed by Mayer and Salovey (1990) or the mixed model
as proposed by researchers such as Bar-On (1997) and Goleman (1995). While the mixed models have
largely measured EI through self-report measures, the ability model offers performance-based test such
as the MSCEIT, which has time and again proved to be statistically a far superior tool. The ability model
focuses not only on the recognition, comprehension, and regulation of emotions, but also on the integra-
tion of emotional knowledge into cognitions. The ability-based model is a four-branch model:

• Branch 1 (perception, appraisal, and expression of emotions) involves the reception and recogni-
tion of emotional information.

• Branch 2 (emotional facilitation of thinking) focuses on using emotions to enhance reasoning.
• Branch 3 (understanding and analyzing emotions) involves cognitive processing of emotions.
• Branch 4 (reflective regulation of emotions) refers to the ability to manage emotions in oneself,

and in others, in order to enhance emotional and intellectual growth.
Internationally, MSCEIT has time and again emerged as a robust measure of ability-based EI. While

its statistical superiority and predictive ability has been adequately demonstrated, there is a paucity of
studies reporting the use of MSCEIT in the Indian context. Thus, the use of MSCEIT to assess the said
association was one of the major contributions of the current study to the body of knowledge.

Transformational Leadership

The concept of TL, a component of the full-range leadership theory developed by Bass (1990) and
studied further by Avolio (1999) and Antonakis (2004), is one of the most widely researched leadership
models. According to Bass (1985), a transformational leader actively seeks to change personal values
among the followers, so that they can go beyond their self-interest for the good of larger entities such as
a group or an organization. Bass (1985) has proposed a full-range leadership model that focuses on three
styles of leadership namely:

Transformational leadership
• Idealized influence (II)
• Intellectual stimulation (IS)
• Inspirational motivation (IM)
• Individualized consideration (IC)

Transactional leadership
• Contingent reward (CR)
• Management by exception-active/passive (MBE-A/P)

Laissez-faire leadership

There have been a number of survey studies that have used the Multifactor Leadership Questionnaire
(MLQ) 5X scale to examine the relationship between leadership behavior and various criteria of leadership
effectiveness (Avolio & Howell, 1992; Yammarino & Bass, 1990). Ozaralli (2003) attempted to investigate
the TL in relation to empowerment and team effectiveness. Findings suggested that TL contributed to the
prediction of subordinate’s self-reported empowerment and that the more the team members experienced
team empowerment, the more effective the team would be. Lowe, Kroeck, and Sivasubramaniam (1996)
found that leaders who exhibit TL behavior are associated with higher levels of job satisfaction, involve-

30 Business Perspectives and Research 4(1)

ment, and performance by their subordinates. Similar results have been found by Carmeli (2003). In addi-
tion, Podsakoff et al. (1990) demonstrated that transformational leaders are directly related to employee’s
performance of organizational citizenship behaviors.

TL behavior has been extensively measured by the MLQ 5X (2000) scale developed by Bass and
Avolio. The tool has been revised several times and has emerged as the most psychometrically sound
scale. It is a 360-degree instrument consisting of two parts. One component is a self-assessment for lead-
ers in regards to their leadership style and the second assessment is for subordinates/peers/boss to report
on their perceptions of the behavior and attributes of their immediate supervisor/peer/subordinate. The
current study focuses only on the TL aspect involving four dimensions namely II, IM, IS, and IC.

Leadership Effectiveness

Despite a lot of interest and research in the field of leadership, there is still a lack of consensus over
what makes a leader effective (Higgs, 2003; Kets de Vries, 1993). TL behaviors have been consistently
related to leadership effectiveness (Lowe et al., 1996; Waldman et al., 1987) and business unit out-
comes. Leaders are not just what they think they are. They are also what their followers perceive them
as. Previous research has found that TL operates on an individual level, and exists in the eye of the
beholder (Yammarino & Dubinsky, 1994, p. 805). While focusing on the characteristics of an effective
leader, collecting self-perceptions of one’s own leadership behavior gives us one perspective on the
issue. Collective perceptions of followers and superiors also help us to understand the dynamics of
leadership in a comprehensive manner. Thus, the use of multiple sources for feedback was the most
logical thing to do.

A number of studies have examined the association between leadership and EI using mixed models
(Jayan, 2006; Singh, 2006). Lowe et al. (1996) completed a meta-analysis evaluating 39 leadership
studies. They found that in most studies, three TL behaviors (charisma, IC, and IS) were related to
leadership effectiveness. This relationship was stronger for subordinate self-rated effort than for an
independent criterion of leadership effectiveness. The TL behaviors correlated more strongly with
leadership effectiveness than did the transactional leadership behaviors.

Leaders of yesteryears were seen to control, plan, and inspect the overall running of the organization.
But in today’s changing times and with predominance on service orientation, leaders are expected to
motivate and inspire followers, generate a sense of belongingness and positive association among
employees and yet meet stiff targets. Thus, the current study aimed at examining the association of EI
and TL with perceived leadership effectiveness.

Perceived leadership effectiveness is a phenomenon that lies more in the eyes of the significant stake-
holder rather than objective job outcomes. Past studies that were based entirely on self-report data for EI
and TL have shown relationships between the two, but few studies that were based on multiple sources
(Harms & Credé, 2010) of data has confirmed these relationships. The current study aimed to study the
relationship between leadership effectiveness as perceived by the superior and subordinate and the EI
and TL behavior of the manager.

To summarize, following were the objectives of the current study:

• To examine the relationship between performance-based EI and TL with leadership effectiveness
as perceived by the superior and subordinate.

• To use the MSCEIT in the Indian context.
• To assess the predictive power of EI of the leaders and their leadership style with respect to the

perception of leadership effectiveness of subordinates and superiors.

Dabke 31

Association between EI, TL, and Leadership Effectiveness

There are a number of theoretical arguments made relating EI to effective leadership (Palmer, Walls,
Burgess, & Stough, 2001). In the study conducted by Lopes et al. (2003), which examined the relation
between EI, as measured by the MSCEIT, and workplace outcomes, employees received better peer and/
or supervisor ratings of interpersonal facilitation and stress tolerance. The Hypothesis 1 of the current
research stated that:

H1: Overall EI, strategic EI and experiential EI will show a significant positive correlation with superior and
subordinate perception of leadership effectiveness.

Research review usually shows a correlation between TL and various criteria of leader effectiveness
(Seltzer & Bass, 1990). Thus, Hypothesis 2 is as follows:

H2: Idealized influence attributes (IDA), idealized influence behavior (IDB), inspirational motivation (IM),
intellectual stimulation (IS) and individual consideration (IC) will show a significant positive correlation
with superior and subordinate perception of leadership effectiveness.

Finally, the current research tried to seek a very pertinent question of what predicts leadership effec-
tiveness perceptions in the multisource context. Given the positive association between the criterion
variables namely EI and TL, and the predictor variable namely leadership effectiveness, the following
hypotheses were proposed:

H3: EI will positively predict leadership effectiveness.
H4: TL behavior will positively predict leadership effectiveness.

The relationship between EI, TL, and perception of leadership effectiveness as hypothesized in the
present study has been pictorially represented in Figure 1.

Experiential E1

Strategic E1

Idealized In�uence-
Attributes

Idealized In�uence-
Behavior

Inspirational Motivation

Intellectual Stimulation

Individualized
Consideration

Leadership
E�ectivenessPositivePredictors

Figure 1. The Model as Proposed by the Author
Source: Author (self).

32 Business Perspectives and Research 4(1)

Methodology

Sample

The sample included 200 middle and senior level managers belonging to various sectors such as IT,
banking, FMCG, and manufacturing. The average age of the participants was 46.74 years (SD = 4.14)
ranging from 35 to 58 years. The average years of experience possessed by the managers was 23 years
(SD = 4.69). The 200 executives included 38 (19 percent) female managers and 162 (81 percent) male
managers. The managers were considered to fulfill the inclusion criteria when they were in the said role
for more than 6 months, had minimum three direct subordinates and were ready for a multisource data
collection process.

Data Analysis Technique

Data analysis was conducted using the Statistical Package for Social Science (SPSS) software version
17.0. A Pearson’s Product Moment Correlation coefficient was calculated to examine the relationship
between EI, TL, and leadership effectiveness. A step-wise multiple regressions analysis was conducted
to assess the predictive ability of the variables.

Measures

Emotional Intelligence

EI of participants was measured by the MSCEIT v2.0 test (Mayer et al., 2002). The test measures EI in
terms of an overall EQ score, strategic and experiential EI as the two area scores, each of which com-
prises two branch scores. The overall and area scores were considered for further analysis. The full-scale
reliability of MSCEIT test is 0.91. The reliability of experiential EI area was 0.90 and that of strategic EI
area was 0.85. Brackett and Mayer (2003) have reported test–retest reliability for the full-scale MSCEIT
v2.0 to be 0.86. The reliability for the branch scores range from 0.74 to 0.89. The Cronbach’s alpha value
of the current sample was found to be 0.72.

Transformational Leadership Style

TL style was measured by the MLQ 5X scale developed by Bass and Avolio (2000). TL behavior was
measured in terms of IDA, IDB, IM, IS, and IC. Past researches have reported adequate reliabilities
(Cronbach alpha), for the MLQ 5X scale, ranging from α = 0.63 to 0.92.

Leadership Effectiveness

Leadership effectiveness was measured via the MLQ 5X scale as well as effectiveness scale developed
by Shanock and Eisenberger (2006). Perceived leadership effectiveness of subordinates was measured
through the supervisory leadership survey developed by Kerr et al. (2006).

Dabke 33

Procedure

The participants were administered the MSCEIT v2.0 test (Mayer, 2002) and MLQ 5X scale (Bass &
Avolio, 2000). Their immediate superior and subordinate were asked to fill up the multi-source form of
the MLQ 5X scale as well as leadership effectiveness scales.

Results

Correlation Analysis

A Pearson’s Product Moment Correlation coefficient was calculated to study the association between EI,
TL, and leadership effectiveness.

Table 1 indicates the correlation between EI and its aspects with leadership effectiveness.

Table 1. Correlation between EI and Its Aspects with Perceived Leadership Effectiveness

Leadership effectiveness
Variable Perception of subordinates Perception of superiors
Overall EI 0.27** 0.03
Strategic EI 0.24**

0.18*

Experiential EI 0.20** 0.11

Source: Author’s own.

Notes: **Correlation significant at p < 0.01 level (1-tailed).

*Correlation significant at p < 0.05 level (1-tailed).

As seen in Table 1, there was a significant positive correlation between subordinates’ perception of
leadership effectiveness and overall EQ (r = 0.27, p < 0.01, n = 200), strategic EQ (SEQ) (r = 0.24, p < 0.01, n = 200), and experiential EQ (r = 0.20, p < 0.01, n = 200). On the other hand, leadership effec- tiveness showed significant positive correlation only with strategic EI of the leader. This indicates that EI of the leader has a greater bearing on the perception of subordinates. On the other hand, superiors may be considering myriad factors while considering leadership effectiveness. Thus, while emotional under- standing and management is of significant importance to the subordinate, the superior looks at factors beyond interpersonal relationship management and empathy. Thus, H1 that overall EI, strategic EI, and experiential EI will show a significant positive correlation with superior was partially supported and was fully supported in case of subordinate rating.

Table 2 summarizes the correlation between aspects of TL and leadership effectiveness.

Table 2: Correlation between Transformational Leadership and its Aspects with Perceived Leadership Effectiveness

Leadership effectiveness
Variable Perception of subordinates Perception of superiors
Idealized influence attributes (IDA) 0.29** 0.61**
Idealized influence behavior (IDB) 0.22** 0.49**
Intellectual stimulation (IS) 0.35** 0.56**
Inspirational motivation (IM) 0.42** 0.53**
Individualized consideration (IC) 0.42** 0.50**

Source: Author’s own.
Notes: **Correlation significant at p < 0.01 level (1-tailed).

34 Business Perspectives and Research 4(1)

As seen in Table 2, all aspects of transformational behaviors showed a significant positive correlation
with subordinate’s perceived leadership effectiveness (r ranging from 0.42 to 0.22, p < 0.01) as well as superior’s perceived leadership effectiveness (r ranging from 0.61 to 0.49, p < 0.01). On the whole, correlation between transformational behavior and effectiveness perception showed stronger association in case of superior rating than subordinate rating. This indicates that superiors have a greater emphasis on leadership behavior. Especially II (r = 0.61, p < 0.01) and IS (r = 0.56, p < 0.01) have a very high linkage with leadership effectiveness perception. On the other hand, subordinates seem to consider transformational behaviors as moderately important while considering leader as effective. To conclude, H2 stating that IDA, IDB, IM, IS, and IC will show a significant positive correlation with superior and subordinate perception of leadership effectiveness was fully supported. The results of the correlation analysis have been summarized in Figure 2.

Overall E1 SE1 EE1

E1 and Transformational Bahviours

IDA IDB IM IS IC

Subordinate Superior

E1 and Transformational Leadership Correlation

E
ffe

ct
iv

en
es

s
Pe

rc
ep

ti
on 0.7

0.6

0.5
0.4
0.3

0.2
0.1

0.27** 0.24**
0.20**

0.29**
0.22** 0.35**

0.49**
0.61**

0.42** 0.42**

0.18*

0.03
0.11

0.56** 0.53** 0.50**

Figure 2. Correlation between Emotional Intelligence of Managers and Transformational Leadership Behavior as
Perceived by Superior and Subordinate

Source: Author’s own.

Multiple Regressions Analysis

A step-wise multiple regressions analysis was conducted to determine if EI and transformational behav-
ior would emerge as positive predictors of leadership effectiveness perceptions. In case of subordinates’
perceived leadership effectiveness, multiple regressions analysis results led to emergence of II (β = 0.15,
ΔR2 = 0.19, p < 0.01) and IS (β = 0.12, ΔR2 = 0.23, p < 0.01) as positive predictors of subordinate leader- ship effectiveness. The two variables explained a variance of 23 percent (ΔR2 = 0.23, F(2,197) = 30.99, p < 0.01). However, none of the aspects of EI emerged as positive predictors of effectiveness.

In case of superior perception of leadership effectiveness, transformational behaviors explained a
variance of 48 percent (ΔR2 = 0.48, F(4,195) = 45.96, p < 0.01). In both the cases, EI of the leader failed to emerge as a predictor of perceived effectiveness. Thus, while H3 stating that EI will positively predict leadership effectiveness was not supported, H4 stating that TL behavior will positively predict leader- ship effectiveness was fully supported in the current sample.

The results obtained in the present study have been summarized in Figure 3.

Dabke 35

Idealized
In�uence

Inspirational
Motivation

Individualized
Consideration

Intellectual
Stimulation

Perceived
Leadership
E�ectiveness

Positive
Predicators

Figure 3. Predictors of Perceived Leadership Effectiveness

Source: Author’s own.

Discussion

The current study aimed at assessing the role of EI and TL behavior in leadership effectiveness percep-
tions of superiors and subordinates. Results indicated that while EI is positively associated with leader-
ship effectiveness perceptions, it failed to emerge as positive predictor. On the other hand, transformational
behaviors emerged as positive predictors of effectiveness perceptions.

Some researchers in the past have argued that the construct of EI can richly contribute in the effective
functioning of a leader and therefore has been subject to extensive research. George (2000), based on the
synthesis of Yukl (1998); Locke, Kirkpatrick, Wheeler, Schneider, Niles, Goldstein, et al. (1991); and
Conger and Kanungo (1998) and other related leadership literature, has theorized that EI facilitates
dimensions of leadership by impacting the following elements of leadership effectiveness:

• Developing a collective sense of goals and deciding a way to achieve them.
• Inculcating the importance of knowledge and emphasizing on the need to exhibit appropriate

work-related behavior in the followers.
• Spawning a sense of excitement, enthusiasm, confidence, and optimism in an organization and

facilitating an environment for cooperation and collaboration.
• Inspiring flexibility in the decision-making process.

Past research has also found a strong positive association between the leader’s EI and subordinate’s
leadership effectiveness perception. Kerr et al. (2006) used the MSCEIT to test the EQ of 38 supervisors.
Ratings of supervisory leadership effectiveness were assessed via subordinate ratings. Data analysis
showed that the total EI score displayed a strong positive correlation with supervisory rating (r = 0.39,
p < 0.01). Total 15 percent of variance in supervisory ratings was predicted by supervisor’s total EI score. Jordan and Troth (2002) found that EI enhances the possibility of usage of constructive conflict with significant correlations between collaboration and awareness of own emotions, discussion of own emotions, control of own emotions, recognition of own emotions, and management of others’ emotions.

36 Business Perspectives and Research 4(1)

While the findings of the current study are in line with previous research, it failed to establish a strong
case in favor of EI as an important ingredient in leadership effectiveness perceptions. On the whole EQ
in general and SEQ in specific seem to be contributing to leadership effectiveness perception. SEQ refers
to the ability to understand emotions and manage them in self and others. Understanding emotions
branch provides data to the leaders about how the subordinate behaves, and how he/she is affected by
environment and relationships. They can be more open to followers’ view points and anticipate their
reactions in various situations. Furthermore, managing emotions may help the leader to focus on
problem-solving, empower the followers, and create an atmosphere of enthusiasm and positive energy.
Various studies on leadership and management skills (Bennis & Nanus, 1985; Kanter, 1983) suggest that
the practice of empowering the subordinates is a principal component of managerial and organizational
effectiveness. This can be accomplished by a high SEQ manager with greater ease than by a low SEQ
manager. Such a manager would be revered and perceived by subordinates as more effective.

In the current study, however, TL behavior seems to play a more significant role on leadership effec-
tiveness perception with II-Attributes, a component of charismatic behavior and IS emerging as a positive
predictor of leadership effectiveness. Transformational leaders tend to display a high level of confidence
and self-esteem to inspire their subordinates to share a common vision (Bass, 1985). As a result, subordi-
nates may get drawn to the leader and develop a relationship with him, characterized by respect and
admiration. The results can also be partly explained through the collectivistic society lens. Collectivistic
orientation refers to the degree to which individuals emphasize responsibility to group and organization
(Triandis, 1995). Cultural groups may vary in their concepts of the most important characteristics of effec-
tive leaders. As such, different leadership prototypes would be expected to occur naturally in societies that
have different cultural profiles (Bass, 1990; Hofstede, 1993). Earlier, Jung, Bass, and Sosik (1995) pro-
vided a conceptual argument that TL would emerge more easily and would be more effective in collectiv-
istic as compared to individualistic societal culture because of strong emphasis on group orientation, work
centrality, and respect toward authority. These trends also emerged in the Global Leadership and
Organizational Behavior Effectiveness (GLOBE) project (House et al., 1999) in which the perception of
leadership effectiveness was shown to be influenced by cultural context. The GLOBE cluster-wise study
indicate that the results from the Southern Asian cluster, of which India was a part, endorsed the charis-
matic/value-based leadership and team orientation as the leadership dimensions contributing most to out-
standing leadership. In a collectivistic culture like India, subordinates heavily depend on the leader to take
care of their personal needs and develop a secure future for them. Furthermore, dependability and stability
is valued the most in a high uncertainty avoidance culture like ours. All these needs get better fulfilled
when they have a transformational leader supporting and leading them. Furthermore, in today’s knowl-
edge intensive industry, providing IS is seen as highly rewarding and satisfactory by subordinates.

In the case of superiors, the study failed to gather much support in favor of EI as an important deter-
minant of perceived leadership effectiveness. Janovics and Christiansen (2002) in their study found that
individuals who scored higher on the MSCEIT received higher superior ratings for job performance
(r = 0.22, p < 0.01). High scores have also been associated with greater merit increase, peer and supervi- sor rating, r = 0.36 – 0.51 (Lopes et al., 2006). However, in case of the present study superiors seems to be emphasizing on leadership behavior rather than the emotional management aspect while attributing effectiveness to leaders. In the past Antonakis (2004) has questioned if EQ is a significant contributor in effectiveness and has opined that EQ does not predict effectiveness over and above general intelligence and Big Five personality model. In his critique of Melita et al. (2003), he argued that normal individuals are perfectly capable to demonstrate the emotional appraisal/social skills that are necessary for effective leadership. He is against the notion that one needs inordinate levels of emotional appraisal ability, which is contrary to the position of Melita Prati et al. (2003), that higher EI is associated with higher leadership

Dabke 37

performance. Antonakis (2004) believes that transformational leader generates affective associations
with his/her followers because of vision, moral conviction, and high need for power (with a high respon-
sibility disposition), courage and confidence (Shamir, House, & Arthur, 1993) and not because of his
superior EI abilities. Schutte et al. (2002), who used the MSCEIT found that EI did not predict incremen-
tal variation in TL when controlling for the measure of g (Wonderlie personnel test) and the Big Five
(NEO-PI).

Thus, it could be concluded that while EI is positively associated to leadership effectiveness, transfor-
mational behaviors seem to be the critical factors in such perceptual attributions.

Implications

The research findings clearly brought out the differences in the expectations held by superiors and
subordinates from the leader. The subordinates appreciate and associate EI with effectiveness. In
contrast, superiors do not emphasize much on EI skills while making effective judgments. These findings
have serious implications for the leader while imbibing working patterns. Once again the results highlight
important messages to be included in leadership development programs, wherein awareness of this
discrepancy may sensitize the leaders to a need for strategic planning while dealing with different
significant sources at work place. It also calls for inculcation of skills to balance between the expectations
by various sources, which can become an active source of stress.

In the current sample, subordinates value the presence of emotional perception and understanding and
management in the leaders’ behavior. The affective component, thus, becomes an integral part in
handling of subordinates. On the other hand, superiors emphasize on cognitive and behavioral aspects
giving lesser importance to emotive and people skills.

These findings are significant from a practical point of view where an effective leader would have to
maintain a fine balance between hard and soft skills. He would have to be tuned to subordinate’s emo-
tions and provide appropriate support and understanding while making an attempt to motivate them or
provide IC. At the same time, he would have to exhibit a clear sense of purpose, goal orientation and
professional outlook in formal forums so that higher ups are convinced of his ability to get work done.

These findings also call for a serious consideration for the inclusions of these insights in training and
leadership development activities. The superiors would benefit from being sensitized to these
requirements of subordinates. In fact, the study by Khandwalla (2004) indicated that senior-level Indian
corporate managers may be less adept at playing leadership roles than at playing strategic and operational
roles. In addition, they may not be as proficient in interpersonal and leadership-related competency as
compared to say, tactical or task achievement-related competency. Further, fewer competencies were
seen to be associated with leadership roles than with strategic or operations-related roles, because
managers may not know well enough how to convert their competencies into effective leadership.

At the same time, managers have to wake up to this role requirement and learn to balance the cogni-
tive and affective component. In other words, managers would have to imbibe the nurturant task-oriented
leadership, a model developed by Sinha (1980, 1984) that incorporated a combination of leadership
styles. The nurturant task-oriented model suggests that an ideal leader in India is both nurturant and task-
oriented. This trend is endorsed in the current study, where subordinates would prefer the nurturant face
of the leader and superiors would prefer a task-oriented front on the part of the leader. According to this
theory, a nurturant task leader needs to show affection, care for subordinates, and genuine commitment
toward their growth. The leader’s nurturance is contingent on the subordinate’s task accomplishment—

38 Business Perspectives and Research 4(1)

the leader becomes a source of support provided that the followers respect, obey him/her, work hard, and
commit themselves to productivity.

Limitations

The major limitation of the current study is the use of single subordinate respondent rather than seeking
the data from all respondents. Furthermore, while the use of MSCEIT was a major strength of the study,
an inadequate insight regarding its culture fairness can also pose some limitations on the generalizability
of the results.

Conclusions

This study brought out the factors that contribute to the perception of leadership effectiveness. It was
found that both EI and TL are positively associated with leadership effectiveness perceptions. However,
effectiveness judgments are more of a function of what the leader does in his role, than his innate
abilities. While EI of the leader is a significant factor, leadership behavior in the given role seems to have
a greater bearing on these perceptions, Thus, training and development should focus on improving
emotional information and honing TL skills. To conclude, EI is an important factor in leadership but
definitely not the supreme, one-stop solution for effectiveness.

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195

7Leadership and
Communication

Ryouchin/Getty Images

Learning Outcomes
After reading this chapter, you should be able to

• Define leadership and contrast leadership with management.

• Compare and contrast the different leadership theories.

• Identify the most effective ways to select and develop leaders.

• Describe the characteristics of positive leadership.

• Describe the communication process in organizations.

• Identify common barriers to effective communication.

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Section 7.1 The Meaning of Leadership

7.1 The Meaning of Leadership
Researchers and practitioners have studied organizational leadership for more than a cen-
tury. Although research approaches differ, the same basic question guides all leadership
research: What constitutes leadership and how does it emerge? To find answers, researchers
and practitioners break the topic into three main lines of inquiry:

• What is the difference between management and leadership? Are all good leaders
also good managers? Why or why not?

• How does leadership emergence differ from assigned leadership? What are the
advantages and disadvantages of each?

• Are leaders born or made? What specific characteristics of leaders are innate?
What specific abilities are learned?

The following sections address each of these questions in turn.

Consider This: What Is Leadership?
Think about each of the questions above and try to answer them using examples and evidence
from your own personal, social, and/or professional experience.

Management Versus Leadership
John Kotter, a Harvard University professor, explained the difference between managers and
leaders by determining where they focus their time and energy. He argues that managers act
to reduce organizational complexity by creating plans, setting goals, monitoring work, and
allocating resources. Leaders, on the other hand, focus on coping with change by establish-
ing a vision of the future, aligning others to this vision, and inspiring them to achieve great
things (Kotter International, 2014). Similarly, an interesting series of studies in the 1980s dif-
ferentiated between successful and effective managers: Successful managers are those who
get promoted faster. Effective managers are those with high-performing units and satisfied
employees. Although they share similar behaviors, successful managers were found to spend
significantly more time networking, socializing, politicking, and interacting with outsiders
than performing traditional management functions such as planning and decision making
or undertaking HR activities such as developing and motivating their followers. In contrast,
effective managers spent most of their time on communication and HR management activi-
ties and spent the least amount of their time on networking and playing politics. Unfortu-
nately, the activities that contribute the least to effectiveness tend to be the ones rewarded by
success and promotion in the world of leadership (Luthans, 1988). Of course, management
and leadership overlap in that effective managers often exhibit superior leadership skills, and
excellent managerial skills often characterize effective leaders as well. Thus, the two are not
mutually exclusive but may have different emphases.

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Section 7.1 The Meaning of Leadership

In this book, we will define leadership as the process of influencing a group of people to
achieve a specific vision or goal. This definition has three important components. First, lead-
ership is a process, which implies that it is not a single trait or characteristic and may thus be
achieved by all people. Second, leaders must influence followers to achieve a desired outcome,
a task that requires leaders to act socially using a positive personal style. Third, leadership is
effective only to the extent that it is able to promote the achievement of specific goals and out-
comes. Throughout this chapter, we will refer to people who engage in leadership processes
as leaders, and those whom the leaders influence will be called followers.

Emergent Leadership Versus Assigned Leadership
One type of leadership, called assigned leadership, stems from a person’s formal job title or
position within the organization. Plant managers, team leaders, frontline supervisors, and
members of senior management (CEOs, presidents, senior vice presidents, etc.) are examples
of assigned leaders. On the other hand, when a person displays behaviors that the group per-
ceives to be leader-like, that person exhibits emergent leadership, regardless of his or her
job title or position within the company. Unlike assigned leaders, emergent leaders are not
defined as leaders due to any official assignment. Researchers have identified a number of
personality traits that are linked to emergent leadership, including confidence, dominance,
and intelligence (Smith & Foti, 1988).

The most important thing to keep in mind is that people are not effective leaders simply
because they are assigned a leadership role. Effective leadership stems not from a job title
but from actions and behaviors.

Are Leaders Born or Made?
The question of whether leaders are born or made is one of the fundamental issues in lead-
ership research. Until recently, the answer to this question remained elusive. However, with
the help of identical-twin studies, researchers believe they now know the answer. Because
identical twins who are raised away from each other share the same DNA but not the same
environment, genetic influences are believed to account for their similarities.

Scientists looked at whether identical twins reared apart shared leadership (or lack of leader-
ship) qualities. In one study, researchers tallied the number of leadership roles that were held
in professional associations and organizations by 110 identical twin pairs and 94 nonidenti-
cal twin pairs who were reared in different environments (Arvey, Rotundo, Johnson, Zhang,
& McGue, 2006). Interestingly, the researchers determined that 30% of leadership-role occu-
pancy was due to heredity, whereas 70% was due to the environment in which the twin was
raised. Thus, genetics do help to determine a person’s propensity for leadership, but environ-
mental factors exert the stronger influence. Additional research has replicated these results
and refined our understanding of them, finding that 17% of leadership emergence is due to
specific environmental factors or differences in work experiences (Arvey, Zhang, Avolio, &
Krueger, 2007). This body of research is very important to our understanding of leadership
because, for the first time in history, we can say that leaders are both born and made. Thus,
organizations must attempt not only to identify both innate leadership traits and learned
leadership behaviors during selection processes but also to provide effective experiences to
promote leadership development.

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

7.2 Traditional, Contingency, and Relational Theories
of Leadership
Although the importance of effective leadership is widely recognized, leadership scholars and
practitioners hold different and sometimes even contradictory views on the characteristics
and behaviors that make a leader. Specifically, leadership theories vary in the emphasis they
place on the leader, the followers, their interaction, and the context or environment within
which they operate.

Traditional Theories
Although current research supports the idea that leadership is based on a combination
of genetic and environmental factors, leadership research at the turn of the 20th century
debated which one was more important. Those who supported trait theories, which assume
leadership has a biological origin, believed that leadership was an innate quality that only
a very few possess. Proponents of behavioral theories of leadership, which suggest that
leadership is attainable by anyone who has the correct training and experiences, focus less
on leaders’ traits and more on their observable behaviors. Even though research from this
period is limited due to both its polarity and datedness, information gleaned from both per-
spectives is still relevant to current conceptualizations of leadership. Let’s take a closer look
at each set of theories in turn.

Trait Theories
In general, trait theories of leadership differentiate leaders from nonleaders by their per-
sonal traits and characteristics. These theories are often referred to as great-men theories
because they tried to identify innate characteristics shared by the great leaders in history,
such as Abraham Lincoln, George Washington, Mohandas Gandhi, Martin Luther King Jr., and
John F. Kennedy. Proponents asserted that only
a few “great” people possessed these traits and
ascended to leadership positions. Those without
these traits were destined to take roles as follow-
ers. According to trait theory, then, leaders are
special people, different from the average human
being (Kirkpatrick & Locke, 1991).

On the surface, trait theories seem to make sense.
However, even researchers of the time were
unable to identify a consistent set of characteris-
tics that differentiated between leaders and non-
leaders. One researcher from the late 1960s, for
example, examined 20 trait-theory studies and
found that of the nearly 80 leadership traits iden-
tified, only 5 were consistent across only 4 of the
studies (Geier, 1967). By the early 1990s researchers were thoroughly confused by the lack
of consistency in the leadership traits identified in various studies. Indeed, the only thing I/O
psychologists could say for sure was that leaders were different from nonleaders—they just
didn’t know exactly how.

Mike Shapiro/Cartoonstock.com

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

With the identification of the Big Five personality traits in the 1990s (see Chapter 3),
researchers were able to assign each of the leadership traits identified thus far into one of
the five personality categories (extraversion, agreeableness, openness to experience, con-
scientiousness, and neuroticism). Of the Big Five traits, extraversion is the strongest predic-
tor of leadership emergence (Judge, Bono, Ilies, & Gerhardt, 2002). This makes sense; it is
really no surprise to learn that people who are energetic, dominant, social, and outgoing are
often described as leader-like. However, not all leaders display extraversion. For example,
Bill Gates, founder of Microsoft, is known to be introverted, as was Steve Jobs, founder of
Apple. Other elements of Big Five traits, such as aspects of conscientiousness (“disciplined”
and “keeps commitments”) and openness to experience (“takes risks” and “flexibility”), are
also related to leadership emergence.

Another trait that shows a relationship to leadership effectiveness is emotional intelli-
gence (EI). Leaders with high EI are self-aware, good at detecting others’ emotions, and
able to manage their own emotions (Goleman, 2000). Once again, it is easy to see how man-
agers who can effectively read and manage emotions and skillfully handle social interac-
tions would also have greater influence over their followers. For example, a study of division
heads in a global food and beverage company found that 87% of leaders with EI competen-
cies were also in the top third for performance-based bonuses, and their divisions outper-
formed annual revenue targets by 15% to 20%. Contrarily, a study by the Center for Creative
Leadership found inadequate EI to be a primary cause of executive failure and to be much
more detrimental for leaders than lack of technical skills (Luthans, 2002a). Much has yet to
be determined regarding the scientific dimensions and trainability of EI, which has led to
criticism of the concept (Locke, 2005). However, the notion that social aptitude is critical for
leaders is impossible to ignore.

Find Out for Yourself: Your EI
Are you emotionally intelligent? To help you determine your level of EI, access and com-
plete the assessment provided by the Greater Good Science Center at the University of
California–Berkeley.

Test Your Emotional Intelligence

What Did You Learn?

1. What is your overall level of EI?
2. Which types of emotional expression do you seem to detect the most? Why?
3. Which types of emotional expression do you seem to detect the least? Why?
4. Which of the characters were easier to “read”? Why?
5. Which of the characters were more difficult to “read”? Why?
6. Were there any consistencies in your ability or inability to read characters based on

gender or race?
7. What are some of the lessons you learned from this assessment?
8. Based on this assessment, how can EI help you become a better communicator?
9. Based on this assessment, how can EI help you become a better leader?

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http://greatergood.berkeley.edu/ei_quiz/

200

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Overall, then, trait theories have both strengths and weaknesses. Their greatest strength lies
in their long history. After more than a century of study, trait theories boast the deepest and
broadest set of published research in the leadership canon. Furthermore, the simplicity of
working with a few broad leadership traits makes trait theories easier for organizations and
workers to understand and apply. However, these theories are oversimplifications of the lead-
ership process, as they do not take into consideration situational factors or followers’ charac-
teristics. Finally, because the main focus of trait theories is to identify established character-
istics, trait theories often face criticism for being useless in terms of helping develop leaders.

Consider This: The Best Leader You Have Ever Had—Part 1
Think about your best leadership experience or the best leader you have ever had.

Question to Consider

1. What were some of the traits that this leader possessed? Based on your knowledge of
individual differences from previous chapters, be sure to list only traits and not atti-
tudes, behaviors, or other characteristics that can be trained or developed.

Behavioral Theories
The inconsistency of early trait theories led some I/O psychologists in a new direction. In
the late 1940s researchers at Ohio State University conducted the most extensive study of
the time on the leadership behaviors important to worker performance. During the study,
researchers asked workers to identify behaviors of effective leaders. From the hundreds
of identified behaviors, they discovered that the vast majority clustered around two broad
dimensions: task-centric leadership and people-centric leadership.

Table 7.1: Task-centric versus people-centric leadership styles

Leadership style Pros Cons

Task-centric • Creates clear, easy-to-follow work
schedules.

• Clearly defines requirements and
deadlines.

• Maintains high standards with
optimal efficiency.

• Is best for employees who need
structure and struggle with time
management.

• Can lead to a lack of employee
autonomy and creativity, which can
result in low morale.

• Generally not a good fit for self-
motivated employees.

People-centric • Acknowledges individual employees
for the work they do.

• Focuses on employee relationships.
• Encourages employees to feel like

they are a part of the company’s
success.

• Employees may feel like they need
more task-oriented direction.

• Focus on the manager–employee
relationship might displace the
focus on other important aspects,
which can result in ineffective
decision making.

Source: Based on “Task-Oriented vs. People-Oriented Management Styles: Which Is Better?” by E. Friedman, 2016
(http://blog.eskill.com/task-people-oriented-management).

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

The task-centric leadership style, known as initiating structure, includes behaviors by which
the leader provides clear guidance and structure to help employees achieve specific goals.
Leaders who are high in initiating structure typically do things such as set and maintain high
performance standards, schedule and assign work, and set clear deadlines.

The people-centric leadership style, also called consideration, includes relationship behav-
iors expressed as displays of trust, camaraderie, and regard for workers’ feelings. Subor-
dinates of a highly considerate leader would likely describe him or her as approachable,
respectful, and supportive of others.

Which of these two styles is more effective? At first, researchers hypothesized that leaders
high in both styles would be the most effective, because such leaders would not only guide
employees toward reaching goals but also support them emotionally along the way (Kerr,
Schriesheim, Murphy, & Stogdill, 1974). Research, however, has not always supported this
notion. More recent studies show that initiating structure is more strongly related to employee
performance, whereas consideration is more important for employee attitudes such as orga-
nizational commitment, job satisfaction, and overall morale (Judge, Piccolo, & Ilies, 2004).

As with trait theories, the behavioral theories of leadership have both advantages and disad-
vantages. On the positive side, research into the two behavioral leadership styles is extensive
and strongly supports their link with employees’ performance and attitudes. A major distinc-
tion between behavioral theories and trait theories is that the former suggests the possibility
of leader development—that is, leaders are not born and can be made. As a negative, this set
of theories has failed to identify a universal style of leadership that works with all people in
every situation.

Consider This: The Best Leader You Have Ever Had—Part 2
Reflect on your best leadership experience or the best leader you have ever had.

Questions to Consider

1. What were some of the behaviors this leader exhibited?
2. When, how often, and in what ways did he or she initiate structure?
3. When, how often, and in what ways did this leader show consideration?

Contingency Theories
Although trait and behavioral theories both significantly contributed to our understanding
of leadership, we now know that predicting leadership success involves more than simply
pinpointing a few key traits or identifying desired behaviors. Contingency theories of lead-
ership were developed to address the complex ways in which situational factors interact with
a leader’s style and impact his or her effectiveness. Simply put, these theories maintain the
basic premise that understanding a leader’s performance requires understanding the situa-
tion in which he or she leads. In the next section, we will examine two contingency theories:
Fiedler’s contingency model and path–goal theory.

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Fiedler’s Contingency Model
Fiedler’s contingency model (Fiedler, 1967) is considered the first contingency model of
leadership. The theory categorizes leaders as either task oriented or relationship oriented
(similar to the two leadership styles discussed earlier, initiating structure and consideration),
yet it maintains that the effectiveness of either type depends on the situation and the amount
of control the leader has over it.

Within the theory, Fiedler identifies three conditions that describe the situation: leader–
follower relationship, degree of task structure, and formal authority or power. As each condi-
tion increases in strength (e.g., better leader–follower relationships, greater job structure,
and higher levels of leader power), so too does the amount of control the leader possesses.
For example, a situation that highly favors leader
control might feature an army sergeant who has
developed positive relationships with subordi-
nates, clearly conveys specific expectations, and
has the authority to reward and punish the sol-
diers. On the other hand, a situation that does not
favor leader control might feature the president
of a sporting club who has offended the member-
ship, neglected to set any formal goals, and has
no authority to hold any of the other volunteer
board members accountable for their actions.
Fiedler’s theory concludes that, in extreme situ-
ations (i.e., very favorable or very unfavorable
for leader control), a task-oriented leader will be
more effective. However, in moderately favorable
situations, the relationship-oriented leader will
be more effective.

Although Fiedler was the first to try to incorporate situational factors into the overall under-
standing of leadership effectiveness, his model has a number of limitations. First, it assumes
that leaders have only one leadership style and that organizations must match leaders to
appropriate situations to promote peak leadership effectiveness. Of course, we all know lead-
ers who are able to adapt their style to fit the situation. Second, the model does not explain
what to do should a mismatch arise between the leader and his or her situation. Finally,
although appropriate theoretically speaking, Fiedler’s ideas would be impractical to use,
because organizations would have to try to evaluate every work situation and potential leader
and then somehow match the two.

Hersey and Blanchard’s Situational Leadership Model
Shortly after Fiedler’s model was introduced, Hersey and Blanchard (1977) developed another
contingency model, which they named situational leadership. Unlike Fiedler’s model, which
assumed a leader usually has one preferred style, Hersey and Blanchard’s model proposed
that leaders can adapt their styles to the situations at hand. Specifically, leaders shift among
four leadership styles, based on their followers’ maturity level. In turn, followers’ maturity
is determined by their (a) willingness (motivation) and (b) ability (skills) to perform their
tasks or responsibilities. Immature followers are neither willing nor able to perform. Mature

iStockphoto/Thinkstock

Better leader–follower relationships,
greater job structure, and higher levels
of leader power increase the amount of
control a leader possesses. For example,
the army is an organization that highly
favors leader control.

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

followers are both willing and able to perform. Between these two extremes, followers vary
in their levels of maturity, and leaders adapt their styles accordingly.

1. Telling is the leadership style used with followers who are neither willing nor able
to perform. The leader-follower relationship is defined by one-way communication,
with the leader defining the followers’ roles and providing the parameters for
completing tasks.

2. Selling is used with followers who are able but not willing to perform. The leader–
follower relationship relies on two-way communication, allowing the leader to
maintain direction while providing support and encouraging followers to buy into
the process.

3. Participating is used with followers who are willing but not able to perform. The
leader-follower relationship relies on shared decision making, with the leader
focusing on relationship building.

4. Delegating is used with followers who are both willing and able to perform. The
leader–follower relationship is mostly one of support, with followers being in
charge of their assigned tasks and how they are accomplished and the leader
monitoring this process.

Unfortunately, despite the intuitive appeal of this theory, subsequent empirical scientific
research did not support it (Fernandez & Vecchio, 1997; Vecchio, 1987). However, the tenets
of the theory remain viable, especially the importance of adapting leadership style to follow-
ers and situations.

Path–Goal Theory
Path–goal theory focuses on the behaviors leaders use to motivate workers to achieve their
goals. As discussed earlier in this chapter, effective leaders help employees reach their profes-
sional and organizational goals by guiding them along a path to success and supporting them
with resources and rewards.

Path–goal theory proposes four styles leaders can utilize to motivate employees to achieve
their goals (House, 1996):

• Directive leadership provides task structure by instructing employees what work
to do and when to complete it.

• Supportive leadership displays concern for the best interest of the employees.
• Participative leadership involves employees in decisions that affect their work.
• Achievement-oriented leadership sets challenging goals for employees and

emphasizes high performance expectations.

The effectiveness of each style is contingent on the characteristics of both the situation and
the followers. Unlike Fiedler’s model, which suggests that leaders’ behaviors are fixed, path–
goal theory assumes that effective leaders can and in fact should adapt their behaviors to
suit each situation and group of followers. For example, if employees face an ambiguous task,
leaders should adopt a directive leadership style and provide the missing structure and orga-
nization. A team of high-performing professionals, on the other hand, would be more moti-
vated by a leader who adopted an achievement-oriented style of leadership.

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Path–goal theory has a number of positive attributes. Most importantly, it suggests that lead-
ers are able not only to change their leadership styles but also adapt them to fit the situation.
Furthermore, it highlights the ways in which leaders can motivate employees’ performance,
which is essential if leadership is to be effective. Despite these strengths, path–goal theory
has faced criticism for its complexity and the lack of research to support it.

Relational and Followership Theories
So far in this chapter, we have examined leadership theories that deal with the ways in which
innate traits, observable behaviors, and situational factors can influence leadership effec-
tiveness. However, none of these theories address the influence of the critical relationship
between leader and follower. Two theories that do so are called leader–member exchange
theory and implicit leadership theory. Furthermore, leadership does not occur in a vacuum.
Followers can play an important role in allowing leaders to emerge and become effective. In
other words, where there is no followership, there is no leadership. Although followership
theories and leadership theories that emphasize the role of followers are not as abundant as
those that focus on leaders, we will discuss followership toward the end of this section.

Leader–Member Exchange Theory
Take a moment to think about a manager for whom you have worked. Did he or she treat you
and your fellow employees exactly the same? If not, how did the treatment differ? Did some
employees receive better work assignments, greater communication, or more interpersonal
attention? These are some of the main topics of leader–member exchange theory (LMX),
which deals with the way in which the leader–follower relationship affects the leadership
process (Dansereau, Graen, & Haga, 1975). LMX proposes that leaders develop special rela-
tionships with a small segment of followers, called the in-group, and place the remaining
followers in the out-group. The leader makes placements based on early interactions, and
these placements remain relatively stable over time. The leader views the in-group followers
as competent, trustworthy, and highly motivated and views the out-group as lacking these
qualities. Although there are questions about how leaders establish in-group and out-group
membership, it is clear that leaders treat members of the two groups differently. Specifically,
in-group followers receive more information, rewards, and support and gain more confidence
than out-group members (Dansereau et al., 1975). Conversely, out-group members receive
more punishments, less communication, and fewer personal interactions.

The manner in which a leader interacts with members of each group has important impli-
cations for workers’ job performance and attitudes. High-quality leader–member exchange
relationships lead to less employee turnover and counterproductive behaviors, higher job
performance, higher quality promotions, and greater job satisfaction, organizational commit-
ment, and citizenship behaviors (Chen, Kirkman, Kanfer, Allen, & Rosen, 2007; Graen & Uhl-
Bien, 1995; Martin, Guillaume, Thomas, Lee, & Epitropaki, 2016). These findings have also
been supported across cultures, although they are stronger in Western cultures (Rockstuhl,

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Dulebohn, Ang, & Shore, 2012). One interesting study found that in-group members were
more likely to engage in creative work due to increased levels of positivity garnered from hav-
ing a closer relationship with the leader (Atwater & Carmeli, 2009).

One of the most frequently cited criticisms of LMX is that it seems unfair. The notion of in-
groups and out-groups is offensive to most people, as is the experience of being treated dif-
ferently by one’s boss. Workplaces in which LMX seems to hold true can be filled with ani-
mosity, conflict, and isolationism between members of the two groups. Furthermore, if the
leader makes in- and out-group placements based on age, gender, race, cultural background,
or physical abilities, charges of discrimination may be warranted. Leaders must be aware of
personal biases and strive to allocate resources based on employees’ needs and competence
instead of first impressions, personal relationships, or physical characteristics.

Consider This: Being in the In-Group Versus Being
in the Out-Group

Think about a situation in which you believe you were in a leader’s in-group.

Questions to Consider

1. How did the leader treat you differently?
2. Were you the only one favored by the leader, or were there others, too?
3. What common traits, values, beliefs, or KSAOs (e.g., gender, age, religion, race, color,

cultural background, physical appearance, hobbies, interests) did you share with the
leader?

4. What common traits, values, beliefs, or KSAOs did you share with other members of the
in-group?

5. On what traits, values, beliefs, or KSAOs did you, the leader, or others in the in-group
vary from members of the out-group?

6. How did being in the in-group make you feel—for example, competent, appreciated,
accepted, fulfilled, proud, guilty, ashamed?

Implicit Leadership Theory
Implicit leadership theory (ILT) defines leadership from the follower’s point of view (see
Figure 7.1). According to ILT, followers use observations and experiences to create a model of
their ideal leader and then compare all leaders against this standard (Lord & Maher, 1993).
Leaders who fit the standard will be viewed as good; those who do not will be viewed as poor.
Followers whose leaders match their ideal standard are more likely to develop more positive
attitudes, greater well-being, and a higher quality relationship with their leader (Epitropaki
& Martin, 2004).

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1. Sensitivity
2. Intelligence
3. Dedication

4. Dynamism

Effective leader prototype

Prototype
matching
process

(A)

1. Sensitivity
2. Intelligence
3. Dedication

Helen’s behaviors/traits

(B)

Question: Is Helen dedicated?
Reasoning: “Well, she’s an effective

leader. Therefore, she is
dedicated.”

Rating behaviors
or using global impressions

(D)

Helen is an
effective leader

Leader
evaluation

(C)

Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

Figure 7.1: ILT and leadership ratings

This sample rating shows that Helen, a potential leader, meets three of the four specified criteria of
an effective leader. This makes her a strong candidate for being an effective leader to this particular
group of followers.

From Industrial/Organizational Psychology: Understanding the Workplace (5th ed., Fig. 13.1), by P. E. Levy, 2016, New York, NY:
Worth Publishers. Copyright 2017 by Worth Publishers. All rights reserved. Reprinted by permission of Worth Publishers.

1. Sensitivity
2. Intelligence
3. Dedication
4. Dynamism

Effective leader prototype
Prototype
matching
process
(A)
1. Sensitivity
2. Intelligence
3. Dedication
Helen’s behaviors/traits
(B)
Question: Is Helen dedicated?
Reasoning: “Well, she’s an effective
leader. Therefore, she is
dedicated.”
Rating behaviors
or using global impressions
(D)
Helen is an
effective leader
Leader
evaluation
(C)

Although you might assume that each person would develop his or her own unique standard
of leadership, this is surprisingly not the case. Typically, employees identify six characteristics
on which they evaluate their leaders’ effectiveness. The first four—sensitivity, intelligence,
dedication, and dynamism—are indicative of positive leadership; the last two, tyranny and
masculinity, are associated with negative leadership (Epitropaki & Martin, 2004). Although
ILT has important implications for understanding how followers evaluate leadership effec-
tiveness, there is little consensus on how organizations should apply the theory to help select
and develop leaders.

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Section 7.2 Traditional, Contingency, and Relational Theories of Leadership

What About Followers and Followership?
It is hard to imagine a leader with no followers. While a leader may be assigned to a position
and given authority over others, the leader may not be able to exercise effective leadership
unless the followers choose to allow him or her to do so. Keep in mind that followership is
not the same as obedience or submission. Some leaders may exercise their authority through
dominance, fear, or control over rewards and punishment. These leaders may force their fol-
lowers to do what they want them to do. However, obeying orders is vastly different from
willingness to buy into a leader’s vision and committing to shared goals and strategies. The
notion of leadership as the ability to influence and achieve goals through others necessitates
the latter.

The limited research on followership shows that followers play an active role in effective lead-
ership. Almost all of the leadership qualities discussed in this chapter are only important to
the extent that they are perceived by followers. Moreover, followers are willing to follow lead-
ers with whom they share mutual identification and trust (Hollander, 1992). Research shows
that leaders’ trustworthiness is determined through their followers’ perceptions of their abil-
ity (e.g., knowledge and skills), benevolence (e.g., having the followers’ best interest at heart),
and integrity (e.g., honesty, fairness, and consistency in words and actions) (Colquitt, Scott, &
LePine, 2007).

Furthermore, in the same way that trust and respect are earned over time, perceived leader-
ship and desired followership also change and evolve. Leaders gain legitimacy based on how
they are perceived to have been selected, how they behave, and the extent to which they meet

Consider This: Your ILT
Using your own observations and experiences, write a one-page description of your ideal
leader. In your description, be sure to include the traits, values, beliefs, and behaviors you
would expect him or her to exhibit in particular situations, as well as characteristics of your
relationship with the leader. Now make a brief list of three to five leaders who have influenced
you personally, socially, academically, or professionally. Rank order these leaders, starting
with the one who influenced you the most. Compare each of the leaders on your list against
your ideal leader description.

Questions to Consider

1. To what extent do the three to five leaders you listed fit your original description of
an ideal leader? To what extent do they deviate? To what extent are they similar to or
different from each other? To you?

2. Based on your answers, what is your ILT that influenced your perceptions of your
leaders’ potential or effectiveness?

3. Optional: Repeat the above exercise with a list of the worst leaders you have ever
had. To what extent did your ILT, rather than these leaders’ actual characteristics or
behaviors, influence your perceptions of them?

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Section 7.3 Contemporary and Emerging Theories of Leadership

their followers’ expectations. For example, emergent or elected leaders tend to earn more
legitimacy than assigned leaders, but they are also subject to more scrutiny and criticism.

Moreover, followers tend to respond positively to leaders who demonstrate, through positive
past encounters and conformity to norms, that they can consistently meet followers’ expecta-
tions. These types of leaders tend to earn what is called idiosyncrasy credit, or the freedom
and discretion to deviate from group expectations. For example, a leader who has established
perceptions of competence and has earned the trust, respect, and loyalty of his or her fol-
lowers can afford to “rock the boat” and bring about unusual changes that may otherwise be
unacceptable (Hollander, 1992). This leader has already earned enough “credit” in the idio-
syncrasy credit “bank” to draw from when such situations arise, which makes the followers
more accepting of such deviations from expectations.

Finally, many organizations are now moving away from the traditional leadership framework
and are using various forms of shared leadership, where no one person is assigned all the
authority associated with leadership. For example, team members can be assigned various
leadership responsibilities based on experience, or leadership roles can be rotated periodi-
cally among team members over time or across projects. Shared leadership, also sometimes
referred to as distributed leadership or collective leadership, blurs the line between leader-
ship and followership and has been shown to contribute significantly to team effectiveness
(Wang, Waldman, & Zhang, 2014).

Consider This: Shared Leadership—an Orchestra
Without a Conductor?

Watch the following video in which members of the Orpheus Chamber Orchestra discuss how
they practice shared leadership by operating without a conductor!

A Case of Shared Leadership: The Orpheus Chamber Orchestra

Questions to Consider

Think about the following questions the next time you work on a leaderless team project for a
class, at work, or as a volunteer.

1. What are some aspects of the project that require leadership?
2. Who emerged as the leader of each of those aspects? Who emerged as the leader of the

project in general?
3. What were the contributing factors to the emergence of each leader?
4. When and why do some of these leaders cease to be perceived as leaders?

7.3 Contemporary and Emerging Theories of Leadership
Although the identification of leadership components and styles has long been of interest
to researchers, more recent topics of study have focused on leaders’ ultimate motives and
how these influence their behaviors. We will examine some of these special topics in the
next section.

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Section 7.3 Contemporary and Emerging Theories of Leadership

Charismatic Leadership
When you hear the phrase “charismatic leadership,” specific leaders undoubtedly spring to
mind, such as Barack Obama, John F. Kennedy, Martin Luther King Jr., Mohandas Gandhi,
and Indira Gandhi. Each of these individuals is considered charismatic, but why? According
to the research, charismatic leaders challenge the status quo, rally followers around an
inspirational vision, empower followers, support followers’ needs, and take personal risks to
achieve success. Based on the expression of these behaviors, followers make heroic attribu-
tions about their leader, which enhances the leader’s credibility and effectiveness (Conger &
Kanungo, 1998).

Of course, charismatic leaders are not always moral or ethical. Individuals such as Adolf Hit-
ler, Benito Mussolini, and Charles Manson displayed all of the above-mentioned charismatic
leadership behaviors, yet they used their power in deplorable ways. Thus, it is important to
distinguish between positive and negative charismatic leaders. First, creating and maintain-
ing personal power is the main goal for the negative charismatic leader. These individuals
care more about creating personal devotion than generating commitment to the originally
espoused ideals. Second, the negative charismatic leader attempts to keep followers weak
and subservient in order to maintain power. On the other hand, a positive charismatic leader
supports, empowers, and challenges followers to achieve more. Finally, the negative charis-
matic leader uses his or her attributed heroic appeal for self-interest instead of the interest
of the followers.

Within the workplace, charismatic leaders can use their power to inspire innovation, collabo-
ration, creativity, and industry leadership—or they can misuse their power to inspire anxi-
ety, mistrust, and inequality (e.g., a CEO who brokers a multimillion-dollar salary, replete with
vacation homes and private jets, at the expense of employees’ benefits and jobs). On the nega-
tive side, one study showed that charismatic CEOs were able to negotiate higher salaries even
when the organization’s performance was mediocre (Tosi, Misangyi, Fanelli, Waldman, & Yam-
marino, 2004). Although negative charismatics are often successful at convincing others to
follow what might once have been a worthy goal, their misuse of power and focus on personal
instead of public good can result in disaster both for followers and the organization as a whole.

Transactional Leadership Framework
Most of the theories presented so far have dealt with leaders who work within a transac-
tional leadership framework, in which they guide and motivate followers along a path
toward established goals. Transactional leadership contains three distinct sets of behaviors:
laissez-faire leadership, management by exception, and contingent rewards.

Laissez-faire leadership is actually neither management nor leadership. Laissez-faire leaders
make no decisions, deny responsibility, provide no support to employees, and refuse to take
action. This is the most ineffective form of transactional leadership.

Management by exception provides followers with constructive criticism and punishes them
for poor performance; this type of leadership can be active or passive. In the active form, lead-
ers monitor workers closely and search for performance deviations, which they then imme-
diately address. In the passive form, leaders wait for a performance deviation to occur and
then react to it. In either case the goal for such leaders is to fix problems quickly and return

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Section 7.3 Contemporary and Emerging Theories of Leadership

the situation to the status quo as soon as possible. Both forms are inherently negative, and
management by exception is considered to be an ineffective form of management.

In contrast to laissez-faire leadership and management by exception, transactional leaders
who practice contingent rewards exhibit good management. Here, leaders provide agreed-
upon rewards to followers who work hard and meet goals. A meta-analysis by Judge and
Piccolo (2004) found a strong relationship between contingent reward leadership and
employee job satisfaction, employee motivation, leader effectiveness, and group/organiza-
tional performance.

The power of positive feedback, and positivity in general, was discussed in detail in Chapters
3 and 4. However, it is important to note here that positive feedback and recognition, when
administered contingently by leaders to their employees based on their performance, repre-
sent powerful rewards that can realize strong motivational results. The magnitude of those

positive results on employee performance has
been found to be comparable to that of financial
rewards (Stajkovic & Luthans, 1997, 2001, 2003).

In fact, employees can become saturated with
financial rewards, in the sense that more money,
although good to have, will not necessarily moti-
vate them to work harder. Actually, it may moti-
vate them to work less and reallocate their time to
other personally meaningful goals such as spend-
ing time with family and friends, retiring early, or
investing their additional financial resources on
other hobbies and interests. On the other hand,
nobody ever complains of having too much posi-
tive feedback or recognition! These two things
have the advantage of being inexhaustible.

Thus, leaders should realize that they have at
their disposal powerful tools to reward their
employees that cost them and their organiza-

tions absolutely nothing: positive feedback and recognition. They can leverage those tools by
learning to intentionally observe their followers’ behaviors and contingently rewarding the
appropriate behaviors through positive feedback and recognition, instead of, or at least less
frequently than, focusing on punishing negative behaviors. Contingent rewards and behav-
ioral management were discussed in more detail in Chapter 6.

Transformational Leadership Framework
Leaders who work within a transformational leadership framework differ from transac-
tional leaders in that they are more concerned with improving followers’ performance and
developing them to their fullest potential (Avolio, 1999). Ultimately, transformational leaders
attempt to motivate followers beyond their own self-interest in order to accomplish some-
thing for the greater good. Research on transformational leadership has dramatically spiked
in the past few decades (Judge & Bono, 2000) and has led to the identification of four specific

michaeljung/iStock/Thinkstock

Positive feedback represents a
powerful reward that can significantly
motivate employees. The performance
improvements realized as a result of
these intrinsic rewards are equivalent to
those of financial incentives.

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Section 7.3 Contemporary and Emerging Theories of Leadership

sets of behaviors: inspirational motivation, idealized influence, intellectual stimulation, and
individualized consideration.

• With inspirational motivation, leaders attempt to inspire followers to achieve more
than they thought was possible by setting high standards of excellence, using stories
and symbols to enhance followers’ understanding, and motivating followers to over-
come barriers and setbacks.

• Idealized influence provides a vision of the future that transcends followers’ self-
interest and creates a collective sense of mission. Transformational leaders who
exhibit idealized influence also possess very high standards of moral and ethical
conduct, which in turn increases followers’ respect of and trust in them.

• As you can probably guess, intellectual stimulation focuses on stimulating followers’
creativity and challenges them to think outside the box. Followers are encouraged to
question the status quo, come up with new ideas, and experiment with new ways to
solve big problems.

• Finally, individualized consideration provides followers with a supportive environ-
ment and attends to their relationship needs. Typically, transformational leaders
who practice these behaviors act as coaches or mentors for their followers. This
support and guidance helps followers develop new skills, which then enhance their
work performance and potential.

In general, research has shown transformational leadership to be more effective than transac-
tional leadership in producing favorable performance and attitudinal outcomes (Bass, Avolio,
Jung, & Berson, 2003; Dumdum, Lowe, & Avolio, 2013; Howell & Avolio, 1993). Keep in mind,
however, that transactional and transformational frameworks of leadership are not mutually
exclusive. Indeed, the best leaders actually use both: transactional to build the initial frame-
work, then transformational to inspire even greater motivation and levels of performance.

Emerging Theories of Positive Leadership
Over the past several years, there has been a
reorientation toward positive leadership theo-
ries, including ethical leadership theory, spiri-
tual leadership theory, and authentic leadership
theory.

Ethical Leadership Theory
Ethical leadership theory has four dimensions:
integrity and altruism of the leader and collec-
tive motivation and encouragement for the fol-
lowers (Martin, Resick, Keating, & Dickson, 2009;
Resick, Hanges, Dickson, & Mitchelson, 2006;
Toor & Ofori, 2009). Ethical leadership is clearly
needed in today’s business environment, which
is dominated by greed and unethical behavior,
as portrayed by the extensive media coverage of
recent corporate scandals. Ethical leadership is Mike Baldwin/Cartoonstock.com

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Section 7.3 Contemporary and Emerging Theories of Leadership

also critical for corporate social responsibility, reputation, and environmental sustainability,
which are currently hot topics in the business landscape.

Spiritual Leadership Theory
Spiritual leadership theory (Fry, 2003) includes intrinsic motivation of followers through a
sense of membership or community and a sense of calling. Membership and calling are pro-
moted by the spiritual leader through vision, hope and faith, and altruistic love. Altruistic love
incorporates a wide range of positively oriented dimensions such as kindness, forgiveness,
integrity, courage, empathy and compassion, honesty, patience, trust and loyalty, and humil-
ity. Spiritual leadership also follows nine spiritual anchors: perfection, compassion, passion,
inspiration, investigation, dedication, appreciation, determination, and cooperation (Karakas,
2010). Most importantly, spiritual leadership is different and more inclusive than religious
leadership, because it is based on a value system that lends itself to most religious and cul-
tural backgrounds. Thus, it is more suitable for global leaders who are leading across cultures,
because it is not as specific to the United States or to the West as are most other leadership
theories.

Authentic Leadership Theory
The third emerging positive leadership theory introduced here is authentic leadership
theory. Harter (2002) defines authenticity as “owning one’s own personal experiences, be
they thoughts, emotions, needs, wants, preferences, or beliefs[,] . . . [acting] in accord with
the true self, expressing oneself in ways that are consistent with inner thoughts and feel-
ings” (p. 382). Thus, authentic leaders are expected to remain true to themselves, admit their
strengths and weaknesses, and openly express their true thoughts and feelings. Authentic
leadership comprises self-awareness, relational transparency, internalized moral perspec-
tive, and balanced processing. Balanced processing is the leader’s ability to objectively con-
sider different viewpoints when making decisions (Avolio, Gardner, Walumbwa, Luthans,
& May, 2004). Authentic leaders are also capable of exploring and striving toward multiple
“possible selves” for the future if their present, “actual self ” is less than desirable, without
compromising their true self.

Avolio and Luthans (2006) explain that authentic leadership is a long-term developmental
process. This process draws from the following factors:

• The leader’s life experiences
• The leader’s psychological capital (hope, efficacy, resilience, and optimism)
• The leader’s moral perspective
• A highly supportive organizational climate

These factors are expected to result in higher self-awareness in leaders, which in turn helps
leaders better self-regulate their behaviors toward continuous self-development.

Most notable about authentic leadership development are how it systematically unfolds and
the role that a positive organizational context can play. Imagine the hypothetical situation in
which an individual is endowed with an ideal combination of talents, resources, and oppor-
tunities and has parents, teachers, and role models cheering her on every step of the way. Of
course, that person’s emergence as a leader may be easy to predict and explain. She is set up

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Section 7.4 Leadership and Power

for success. Now imagine the opposite: an individual who is considered below-average and
has limited resources and opportunities but emerges as a leader against all odds. Both of
those situations are rare. It is unlikely that a potential leader will find himself in a situation
in which his development is perfectly planned. It is also unlikely that an effective leader will
result from a haphazard combination of uncontrollable situational factors. Authentic leader-
ship development is a more realistic process in which planned and unplanned trigger events
are purposefully orchestrated within a supportive organizational climate in order to enhance
self-awareness, self-regulation, and self-development. In turn, authentic leaders are charac-
terized by being keen to develop their followers into authentic leaders as well. Of course, the
ultimate goal of authentic leadership development is veritable, sustainable performance from
the leader and the followers.

Find Out for Yourself: Warren Buffett and Bill Gates
as Authentic Leaders

Warren Buffett and Bill Gates are two of the richest and most successful businessmen in the
world. They are known for investing time and energy in imparting their wisdom, knowledge,
and experience to the next generation of leaders, both in their respective companies and in
their numerous interactions with college students. Watch the following video for a great exam-
ple of one of those many occasions.

Buffett and Gates Go Back to School: Good Business Habits

What Did You Learn?

1. In what ways could Buffett and Gates be considered authentic leaders?
2. In what ways do Buffett’s and Gates’s leadership styles influence the authenticity of

their followers and, in turn, their development into authentic leaders?

7.4 Leadership and Power
Power is the capacity of one person to influence the behaviors of another. In many ways this
definition is similar to that of leadership. So, are leadership and power the same thing? The
answer is no, but the two concepts are intertwined. Power is a tool; leadership is use of that
tool. Like any tool, power may be used effectively or poorly, positively or negatively. Finally, not
all leaders have the same kind or amount of power, many can lose it, and some have none at all.

Where do leaders get their power? Why do some leaders have power and others do not? Raven
(1993) has identified five types of power—legitimate, coercive, reward, expert, and referent—
that address these and other power-related questions.

Leaders begin their tenure with a certain amount of legitimate power, which stems from their
job title or position within the organization. Workers will follow their boss because he or she is,
quite simply, the boss. Typically, leaders who have a higher position of authority will also have
greater legitimate power than lower level managers. Keep in mind that leaders, should they
prove to be ineffective or incompetent, can quickly lose some or all of their legitimate power.

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Section 7.5 Identifying and Developing Effective Leaders

Coercive power is based on fear. Followers do what the leader says because they are afraid
of negative consequences if they do not. Within an organization, negative consequences can
include reprimands, micromanagement, limitations in movement or chances for promotion,
revocation of assignments, or job termination. Leaders who use coercive power reinforce
compliance, which tends to limit the amount of effort employees put into excelling at their
jobs.

Reward power is the opposite of coercive power. Followers comply with the leader in order to
obtain positive rewards. In order to have reward power, leaders must be able to give rewards.
Examples include pay, benefits, promotions, job assignments, and other recognition.

Expert power stems from a leader’s special skills, knowledge, and expertise. This is one of
the strongest forms of power because it is based on the leader’s actual competence rather
than his or her job title. Note that leaders who lack expert power can always gain it by increas-
ing their knowledge or competence.

Finally, if you have ever liked and admired another person, chances are that person had great
influence over your thoughts and behaviors. Referent power is power that develops out
of admiration for and the desire to be like the leader. Followers can grant referent power
to anyone, regardless of the person’s formal level of leadership or relationship to them. For
example, many people attribute referent power to famous actors, singers, athletes, political
leaders, and even historical figures whom they have never met or directly interacted with.
Charismatic, transformational, and authentic leaders are also likely to exert referent power
over their followers.

Leaders may hold any of the five sources of power or combinations thereof, but the ques-
tion remains, which sources are the most effective? Research has shown that formal power
sources (legitimate, coercive, and reward) are less effective in influencing followers than
informal sources (expert and referent). Expert and referent power are positively related to
employee satisfaction, commitment, and performance (Carson, Carson, & Roe, 1993; Podsa-
koff & Schriesheim, 1985). This is because employees often follow leaders with expert and
referent power willingly and voluntarily. On the other hand, legitimate, coercive, and reward
power may not always be seen as “earned.” As soon as a leader loses his or her position, that
leader will likely lose these formal sources of power. However, expert and referent power may
last regardless of formal position.

7.5 Identifying and Developing Effective Leaders
Although it is important to understand the hows and whys of effective leadership, organiza-
tions need to know how to apply this information to help them identify and develop leaders.
I/O psychologists have researched a variety of approaches organizations can use to accom-
plish this important task.

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Section 7.5 Identifying and Developing Effective Leaders

Leadership Selection
As discussed earlier in this chapter, as well as in
other chapters of this book, not all human char-
acteristics are open to development. For example,
we know that a good portion of leadership emer-
gence and effectiveness is based on stable per-
sonality traits, which tend to be hardwired and
almost impossible to change in adults. This is the
“born” part of leadership. Thus, it is important to
select leaders who possess these traits, because
they cannot be developed. Identifying and select-
ing effective leaders is one of the most important
yet most difficult tasks for organizations. Nadler
and Nadler (1998) clearly summarized this chal-
lenge, writing that

in their most introspective moments, most executives readily acknowledge
that selecting the right people for the right jobs constitutes one of the most
important responsibilities. Few decisions that they make will have as direct
an impact on every facet of the organization. Yet, few other decisions are made
in such an illogical, slipshod manner. (p. 229)

To improve their leadership selection process, organizations should always include the fol-
lowing two steps: First, perform a rigorous job analysis of the leadership position in question,
and second, introduce structured interviews and assessments into the selection process.

In Chapter 2 we discussed the value of the job analysis in defining the characteristics a worker
needs to perform a job successfully. When applied to positions of leadership, a job analysis
also provides the data needed to select a successful job candidate, including the critical KSAOs
necessary for success, the essential tasks the leader will perform, and the situational factors
the leader will experience. Situational factors are especially important when an organization
wants to establish fit between a candidate and the work environment. After the organization
thoroughly defines the leadership position through a job analysis, it will be able to design an
effective evaluation process.

As already mentioned, structured interviews and assessment tools are key to identifying lead-
ers. Structured interviews give the organization the opportunity to learn about and evaluate
the candidate’s experiences and how they relate to the position, and they are especially effec-
tive at evaluating the candidate’s communication, persuasion, influence, and negotiation abili-
ties. Assessment tools, in the form of personality tests, measure critical leadership traits, such
as extraversion, conscientiousness, and openness to experience. Although not as commonly
used as interviews and personality tests, assessment centers also help organizations evaluate
leader candidates. Because they require candidates to demonstrate essential leadership skills
(such as coaching, delegating, persuading, influencing, making decisions, communicating,
and formulating strategy) within a simulated work environment, assessment centers provide
clearer insights than any other selection method into an individual’s leadership skills.

Ryan McVay/Thinkstock

Structured interviews and assessment
tools are key to identifying potential
leaders.

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Section 7.5 Identifying and Developing Effective Leaders

Leadership Development
According to the ATD, organizations spend billions of dollars each year on leadership train-
ing and development (American Society for Training and Development, 2010; Dvorak, 2007a).
Much of that investment is made in formal education. Some organizations send leaders to lead-
ership programs offered by elite business schools, including Harvard, MIT, Stanford, and Whar-
ton. Despite their cost—some have a price tag of $100,000 per person—these programs have
the advantages of a prestigious faculty, an elite reputation, and a socially powerful student
body. Other companies also make a considerable investment in internal-development pro-
grams. General Electric, for example, has created a world-renowned leadership-development
facility called Crotonville, where the company develops executive leaders.

Some researchers and practitioners have proposed that organizations use job experiences
instead of formal education to develop their leaders. One study found that leaders who were
asked to recall specific factors that were most valuable to their development as leaders most
frequently cited experiences, not education (McCall, Lombardo, & Morrison, 1988). Clearly,
people do learn to be effective leaders on the job, so organizations must provide leaders with
specific hands-on development opportunities that stretch and challenge their KSAOs. This is
also consistent with the authentic leadership development process, discussed earlier, which
relies on planned and unplanned trigger events and experiences rather than just formal edu-
cation or training.

Executive Leadership Derailment
The reason organizations spend so much time, money, and effort trying to identify, select, and
develop leaders is simple: They do not wish to hire ineffective, incompetent, or harmful lead-
ers. Leadership derailment, or the process by which a leader displays increasingly ineffec-
tive behavior, is very expensive. Costs associated with leadership derailment have been esti-
mated to range from $750,000 to $1.5 million per executive leader (DeVries & Kaiser, 2003).
One study even estimated that the cost per derailed executive leader exceeds $2.7 million
(Smart, 1999). How can this be? By the time a leader derails, the organization has already
spent a large amount of money both to recruit the executive (including executive search firm

Find Out for Yourself: Criteria for Selecting Leaders
Browse the Internet for leadership position openings. Use free search engines, or if you sub-
scribe to more specialized or higher end recruitment sites, you can use those as well.

What Did You Learn?

1. What are some of the most common selection criteria that organizations use for leader-
ship position candidates?

2. To what extent do each of those selection criteria relate to personality, individual differ-
ences, past experience, or KSAOs?

3. How would you recommend assessing potential candidates on each of those criteria?
What specific methods, tools, or tests would you use? You may use additional research
to find the most effective approaches for assessing each criterion.

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Section 7.6 The Importance of Communication

fees, interview travel expenses, signing bonuses, and relocation costs) and to help him or her
improve performance. At the time of termination, the organization loses still more money to
the former executive in the form of exiting costs, including retirement plan and severance
package payments. Finally, most estimates of leadership derailment expenses do not include
the hidden costs associated with an incompetent leader, such as losses in business opportu-
nity, customers, employees, and intellectual property.

Studies on the prevalence of incompetent leaders have shown astonishingly high numbers.
Participants in one study indicated that only 38% of their bosses, both current and former,
were worthy of working for again (Curphy, 2008). After examining a dozen published studies
on the investigation of the base rate of leadership failure, Hogan, Hogan, and Kaiser (2010)
found that results ranged from 30% to 67% and placed the average at 50%. In other words,
on the basis of the data, the authors concluded that “two-thirds of existing managers are
insufferable, and at least half will eventually be fired” (p. 556).

The question is, why do leaders derail? Although there are of course many reasons why a
person can fail as a leader, research has been able to find some consistent signs of derailment
(Hogan & Warrenfeltz, 2003):

• Displaying a lack of self-awareness
• Having a narrow focus and lack of strategic perspective
• Being arrogant or overly cocky
• Exhibiting overly controlling behaviors, such as micromanagement
• Showing insensitivity and abrasiveness toward others
• Allowing stress to become overwhelming
• Favoring self-interest over the company’s interest

As you can see, many of these factors are directly related to the leader’s EI. Indeed, as explained
earlier, when it comes to leader derailment, lack of EI is much more detrimental and directly
connected to failure than technical abilities and skills (Goleman, 2000; Luthans, 2002a).

7.6 The Importance of Communication
Communication, the transfer of meaning from one person to another, is an essential quality
of the effective leader. Because leaders spend the majority of their time communicating, they
must focus not only on being heard but also on being understood. With all the choices for
methods of communication—including traditional (memos, letters, meetings, presentations,
face-to-face interactions) and emerging (instant messaging, e-mail, texting, social networks)
forms—leaders often struggle to find the best way to communicate each message.

The Process of Organizational Communication
The purpose of communication is to convey a message from a sender to a receiver. Interest-
ingly, even with the advent of instant messaging, e-mail, and the like, the process of commu-
nication has remained relatively consistent over time. In 1949 Shannon and Weaver defined
seven elements that are still regarded as essential for the process of communication (a model
of this process is shown in Figure 7.2): source, message encoding, channel, noise, receiver,

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Channel

Feedback

Sender

Noise
source

Message
Encoding
message

Receiver

Message
received

Message
decoded

Section 7.6 The Importance of Communication

message decoding, and feedback loop. To communicate, a source (for our purposes, the
leader) encodes a message and transmits it through a channel (method of communication)
to a receiver (the follower), who then decodes the message to make sense of the information.
Sometimes, a channel may contain noise that blocks or distorts the message. Examples of
noise are language barriers, information overload, emotion, or perceptual problems. The final
element of communication is the feedback loop. By obtaining feedback, the sender confirms
that he or she has in fact transferred the desired message and that the receiver has properly
decoded the message.

Figure 7.2: The communication process

The seven essential elements of the communication process.

Channel
Feedback
Sender
Noise
source
Message
Encoding
message
Receiver
Message
received
Message
decoded

Barriers to Effective Communication
Effective communication is inherently difficult. As mentioned above, many factors can inter-
fere with a person’s ability to send, receive, or interpret a message. One such factor, informa-
tion overload, deals with the amount of information a person is able to meaningfully process.
People have a finite capacity for processing information, and the continual onslaught of infor-
mation sent through methods such as e-mail, instant messages, social media, meetings, and
phone calls places people at a higher risk of information overload. Another factor, called selec-
tive perception, occurs when receivers process only the portions of the message that relate to
their own needs, motivations, personal characteristics, and/or experiences. In this situation,
the receiver skews the message to meet his or her reality. Emotions can also affect the way in
which a person sends or receives messages. A person who comes to work angry, for example,
may interpret a manager’s e-mail differently than a coworker who is having a good morn-
ing. Finally, language barriers impede how we communicate. Even when communicating in
the same language, people can attribute different meanings to the same words. Newly hired
employees can also struggle to understand the slang and jargon used by veterans in the orga-
nization. With so many different barriers to communication, it’s truly a miracle we are able to
understand as much as we do!

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Section 7.6 The Importance of Communication

Key Functions of Organizational Communication
From globalization to advances in technology to the troubled economic climate, the enor-
mous changes and challenges faced by businesses today have made effective communication
increasingly important to overall organizational performance. Although the primary function
of communication is to affect receiver understanding, research suggests it does much more
than this (Poole, 2010). For example, Neher (1997) emphasized the effect of communication
on organizational and social aspects within the workplace over and above the basic exchange
of information. Specifically, Neher drew attention to the role of communication in establish-
ing order and control as well as its influence on functions such as problem solving, conflict
management, negotiation, and bargaining. Similarly, Myers and Myers (1982) identified three
primary functions of communication over and above that of message conveyance: coordina-
tion and regulation of production activities, socialization of workers, and innovation.

Structure of Communication
The structure of organizational communication can be very complicated. In large companies
communication can involve hundreds or even thousands of workers using many different
channels across a number of hierarchical levels. In the past, large bureaucratic organiza-
tions relied almost exclusively on formal (e.g., downward or hierarchical), one-way methods
of communication. They believed that workers who lacked a structured, controlled commu-
nication process would be unable to obtain the information they needed to perform their
jobs properly. Furthermore, these organizations feared that informal (e.g., lateral) methods of
communication would create uncontrolled chaos and block the flow of information. However,
it is important to note that no formal communication system can account for all of the pos-
sible paths and directions of communication within an organization. Therefore, such systems
are inherently limited. Indeed, some researchers have proposed that informal communica-
tion is critical for managing and maintaining an organization’s culture (D’Aprix, 1996).

In addition to supporting an organization’s culture, informal processes can also make com-
munication speedier and more effective than formal processes can through the establish-
ment of communication networks. A communication network, also known as the grapevine,
arises when workers establish lines of communication among themselves, including peers,
members of both higher and lower hierarchical levels, and workers in different areas of the
company. Figure 7.3 shows an example of a simple communication network.

A number of properties influence the way in which networks and the people within them
work. First, network density compares the number of existing connections between network
members with the total number that could possibly form. The sample network in Figure 7.3 is
a dense network because almost all possible connections have been made. Second, networks
can be described according to the strength of the relationships between members. Those who
communicate more often will have stronger relationship ties, whereas those who seldom com-
municate with others will have weak ties. Networks with many strongly tied workers will be
more cohesive than those with weakly tied workers (Poole, 2010). Network centralization,
the third property, is the number of people in charge of controlling the flow of communica-
tion. In highly centralized networks, only a few members control the flow of communication.
In decentralized networks (of which Figure 7.3 is an example), the opposite is true. Finally,
network connectivity is the extent to which all members of a network are connected to each
other, either directly or indirectly. In Figure 7.3 the sample network is highly connected.

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Employee

Manager

Executive

Coworker

Section 7.7 Direction of Communication

Interestingly, contrary to the notion that they are breeding grounds for rumor and gossip,
informal networks have been found to channel communication as accurately as more formal
methods (Monge & Contractor, 2003). Furthermore, employees who are actively involved in
informal networks are more knowledgeable about their organization, better at improvising to
solve problems, and better able to innovate (Albrecht & Hall, 1991; Bach, 1991; Bastien, 1992).
Informal networks may demonstrate their effectiveness most clearly during times of turbu-
lence and change, because they allow for the speedy development of solutions to problems
and require no command and control structure to accomplish work (McPhee & Poole, 2000).

7.7 Direction of Communication
Communication within an organization can flow vertically (from the leader to the follower
and vice versa), laterally (from one peer to another), or diagonally (from a leader to a follower
in another area of the organization and vice versa). Traditionally, organizations have placed
greater emphasis on vertical communication, but that is no longer the case. As organizations
have become more complex, so has their communication, making lateral and diagonal forms
increasingly important.

Figure 7.3: Networking example

Effective communication depends on communication networks that establish open lines of discourse
between all parties.

Employee
Manager
Executive
Coworker

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Section 7.7 Direction of Communication

Downward Vertical Communication
Downward vertical communication, sometimes referred to as hierarchical communication,
flows from a higher to a lower level of the organizational hierarchy. When we think of leader-
ship communication, this is the type we typically think of. Leaders at all levels of the organi-
zation use downward communication to share information, set goals, provide feedback, and
reward or punish behavior. Surprisingly, although organizations engage in downward com-
munication frequently, they generally do not do it well. Based on a survey of 30,000 employ-
ees, Morgan and Schieman (1983) found that a majority of the workers felt their organization
was ineffective at communicating down to them. The lowest level employees—those who
probably received the least amount of communication—felt the most negative about the com-
munication they did receive.

Organizations can improve downward communication in a number of ways. One relatively
simple way is to provide employees with explanations as to why leaders made the decisions
they did. In one study, employees were twice as likely to commit to a decision if they under-
stood the reason behind it (Dvorak, 2007b). Another way to improve downward communi-
cation is to try to counteract its one-way nature by encouraging followers to provide input
and opinions. The best downward communication, then, occurs when a leader explains the
reasons for decisions and gathers input from his or her employees.

Upward Vertical Communication
Upward vertical communication flows from a lower to a higher level of a work group.
Employees use this method to inform management of the status of projects, to express feed-
back, and to alert management of goal attainment. Organizations have established a number
of formal ways for employees to engage in upward communication, including employee sur-
veys, grievance programs, suggestion boxes, and employee participation programs such as
quality circles and team meetings.

As with downward communication, employee satisfaction with upward communication is
quite low (Gibson & Hodgetts, 1991). There are a number of reasons for poor upward com-
munication: Employees may fear reprisal for speaking their mind, managers may not pay ade-
quate attention due to time constraints, and managers may steal employees’ ideas (McClel-
land, 1988). Leaders need information and feedback from their followers in order to make
more informed decisions; they must therefore create an environment in which followers feel
safe engaging in upward communication.

Lateral Communication
Lateral communication flows between peers at the same level of a work group. The trend to
flatten the hierarchical structure of organizations has reduced the emphasis on strictly down-
ward communication, resulting in increased importance of communication between peers.
The rise of the work team and the emergence of virtual workers and geographically separated
work groups has also mandated the use of lateral communication to promote the sharing of
ideas, expertise, best practices, and lessons learned.

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Section 7.8 Special Issues and Challenges in Organizational Communication

Diagonal Communication
Diagonal communication flows between managers and workers located in different parts
of the business (Wilson, 1992). As communication has changed within the modern organiza-
tion, diagonal communication has emerged as an important method of communication. The
concept was originally introduced to address the communication challenges associated with
new organizational formats, such as matrix and project-based organizations.

7.8 Special Issues and Challenges in Organizational
Communication
Think about how communication within organizations has changed over the past three
decades. Several decades ago, it was relatively slow and involved a lot of physical effort, as
managers made requests (and left a lot of messages), and employees searched for informa-
tion (making false starts, traveling circuitous routes, hitting dead ends, and also leaving many
messages). Managers’ main concern was sharing information through a formal top-down
communication system. Today communication is not only much more interconnected and
varied, but faster as well. Modern workers have a world of information at their fingertips;
they can access libraries, newspapers, research publications, encyclopedias, and more from
their computers instead of having to physically visit the library or wait for information to
arrive by courier or in the mail.

Technological Changes
Advanced information technology allows organizations
unprecedented opportunities to openly and quickly com-
municate and exchange ideas, which can enhance cre-
ativity, innovation, customer satisfaction, and employee
engagement. However, there are also problems with the
excessive use of electronic media for communication.
First, despite the ease of modern forms of communica-
tion, being connected to one’s job 24 hours a day—as
many of today’s employees are—can result in an overload
of communication. Second, ongoing electronic communi-
cation can upset work–life balance, because an employee
with a company-issued cell phone is never really off the
clock. Third, electronic communication threatens to vio-
late employee privacy, because many devices today are
equipped with a Global Positioning System (GPS) track-
ing device, making employees’ whereabouts traceable at
all times. Fourth, the risks of industrial espionage and
intellectual property pirating are exacerbated by tech-
nology and electronic communication. Finally, when
electronic communication replaces richer media such as
face-to-face interaction, leaders and employees can feel
distant and estranged, making it harder to relate to each
other and build trust.

Photos.com/Thinkstock

Communication is faster and
more interconnected than ever
before, thanks to advances in
information technology. As a
result, it has never been easier
to exchange ideas that can lead
to enhanced creativity and
innovation.

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Section 7.8 Special Issues and Challenges in Organizational Communication

Similarly, social networking is a powerful tool for career development and organizational suc-
cess. Research shows that the ties created through even the brief interactions typical of social
networking can contribute valuable resources for employment, career advancement, and new
knowledge transfer (Inkpen & Tsang, 2005; Montgomery, 1992, 1994). However, social net-
working, especially when mediated by technology, presents the same challenges of electronic
communication, including communication overload, work–life imbalance, estrangement, and
violation of employee privacy and organizational intellectual property. For example, as part
of their selection processes, many employers now routinely visit social networking websites
and take into consideration the information that candidates choose to reveal on their pages
and the friends they choose to associate with.

Cross-Cultural and Gender Differences
Increasing diversity in the workplace poses its own set of unique communication challenges.
Indeed, cross-cultural differences can shape our perceptions and interpretations of commu-
nicated messages. On the other hand, contrary to common beliefs, gender differences in com-
munication are not as prevalent (Aries, 1996). The very large within-group variations in men
and women’s communication styles most likely account for the inconsistent and inconclusive
research findings in this area (Reeder, 1996).

While some of the most recognized cross-cultural differences are covered in this section, this
is by no means an exhaustive list of issues to consider.

Hofstede’s National Cultural Dimensions
The national culture model (Hofstede, Hofstede, & Minkov, 2010) was established after Profes-
sor Geert Hofstede and his research team analyzed value scores reported by IBM employees
in 40 countries. Hofstede found that employees’ preferences in relation to six specific cultural
dimensions could be used to distinguish countries and their values from one another. These
six dimensions are power distance, individualism, masculinity, uncertainty avoidance, long-
term orientation, and indulgence. Table 7.2 further defines and compares these dimensions.

As you can see from Table 7.2, the way societies relate to specific cultural dimensions can
affect how that society communicates internally as well as externally. Consider, for example,
how a businessperson from a culture with a low degree of uncertainty avoidance might dis-
cuss a risky but potentially profitable endeavor with a partner from a culture that has a high
degree of that same dimension. Or similarly, how a leader from a low power distance culture
may not receive genuine input and feedback from his or her followers in a high power dis-
tance culture.

Trompenaars’s Cultural Factors
In a similar attempt at understanding cultural differences, Dutch organizational theorist Fons
Trompenaars identified seven cultural factors that can act as a guideline for cross-cultural
communication. Table 7.3 provides a breakdown of each of these seven factors.

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Section 7.8 Special Issues and Challenges in Organizational Communication

You may notice some similarities between Trompenaars’s and Hofstede’s cultural dimen-
sions. However, an important distinction is that Trompenaars’s work was based on more
diverse samples, while Hofstede’s work was based primarily on employees of one company.

Trompenaars’s Four Diversity Cultures
Trompenaars also developed another model for understanding cultural differences, known
as the four diversity cultures. Rather than comparing cultures over a range of seven differ-
ences, however, the four diversity cultures model establishes two major dimensions: person/

Table 7.2: National cultural dimensions

Dimension Description
Cultures with high
degree of dimension

Cultures with low
degree of dimension

Power distance The degree to which
members of a society
accept and expect that
power is distributed
unequally

Accept a hierarchical
order in which every-
body has a place and
which needs no further
justification

Strive to equalize the
distribution of power
and demand justifica-
tion for inequalities of
power

Individualism The degree to which
members of a society
depend on one another
to provide care; can be
detected in whether
people define their self-
image as “I” or as “we”

Prefer a loosely knit
social framework in
which individuals are
expected to take care
of only themselves
and their immediate
families

Prefer a tightly knit
societal framework in
which individuals can
expect their relatives or
members of a par-
ticular in-group to look
after them in exchange
for unquestioning
loyalty

Masculinity The degree to which
a society is more
competitive or
consensus-oriented

Prefer achievement,
heroism, assertiveness,
and material rewards
for success

Prefer cooperation,
modesty, caring for the
weak, and quality of life

Uncertainty avoidance The degree to which
members of a soci-
ety feel comfortable
with uncertainty and
ambiguity

Maintain rigid codes
of belief and behavior
and are intolerant of
unorthodox behavior
and ideas

Maintain a more
relaxed attitude in
which practice counts
more than principles

Long-term orientation The degree to which a
society maintains links
with its own past while
dealing with the chal-
lenges of the present
and the future

Encourage careful
use of resources and
modern education as a
way to prepare for the
future

Prefer to maintain
established traditions
and norms while view-
ing societal change with
a level of distrust

Indulgence The degree to which a
society allows for the
gratification of needs
and drives

Allow relatively free
gratification of basic
and natural human
drives related to enjoy-
ing life and having fun

Suppress gratification
of needs and regulate it
by means of strict social
norms

Source: From “Geert Hofstede: National Culture,” by Hofstede Centre, n.d. (http://geert-hofstede.com/national-culture.html).

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Section 7.8 Special Issues and Challenges in Organizational Communication

Table 7.3: National culture differences

Differences Description
Cultures with a high
degree of Trait A

Cultures with a high
degree of Trait B

Trait A: universalism
vs.
Trait B: particularism

The degree to which a
culture applies ideas
and practices

Focus on broad,
general rules that
can be applied to all
situations; tend to be
more rational and task
focused

Focus on applying
rules on a case-by-
case basis; tend to
place greater empha-
sis on relationships

Trait A: individualism
vs.
Trait B: communitarianism

The degree to which
members of a culture
regard themselves
as part of their
community

People regard
themselves primar-
ily as individuals;
focus on individual
contributions and
achievements

People regard them-
selves primarily as
part of a group; focus
on community first

Trait A: neutral
vs.
Trait B: affective

The degree to which
our interactions
should include
emotion

Typically prefer objec-
tive and/or detached
interactions

Expect emotion to be
part of all interactions,
including in business

Trait A: specific
vs.
Trait B: diffuse

The degree to which
the whole person
is involved in an
interaction

Tend to adhere to a
specific relationship,
such as one pre-
scribed by a contract

Emphasize the
importance of build-
ing a relationship that
encompasses more
than the immediate
goal

Trait A: achievement
vs.
Trait B: ascription

The way in which a
society acknowledges
status

Acknowledge status
based on recent
accomplishments and
record

Acknowledge status
based on birth, kin-
ship, gender, age,
connections, and
educational record

Trait A: sequential
vs.
Trait B: synchronic

The way in which
society views time

View time as moving
along a straight line;
focus on the pres-
ent and plans for the
future

View time as moving
in a circle; past and
present are consid-
ered alongside future
possibilities

Trait A: internal
vs.
Trait B: external

The way in which
society views its
relationship to the
environment

See motivation, val-
ues, and other major
aspects affecting
individuals as coming
from within

See the environment
as affecting individual
behaviors; nature
is something to be
feared or emulated

Source: From Riding the Wave of Culture: Understanding Diversity in Global Business (3rd ed.), by F. Trompenaars and C.
Hampden-Turner, 2012, New York, NY: McGraw-Hill.

informal style vs. task/formal style, and egalitarian/decentralized vs. hierarchical/central-
ized. Depending on how a culture aligns with each of these dimensions, it can fall into one
of four culture types: incubator, guided missile, family, or Eiffel Tower. Figure 7.4 provides
a visual representation of how these dimensions and culture types are divided, as well as a
closer look at the characteristics of each of the four types.

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226

– Person oriented
– Power of the individual
– Self-realization
– Commitment to oneself
– Professional recognition

Incubator

– Task orientation
– Power of knowledge/expertise
– Commitment to (tasks)
– Management by objectives
– Pay for performance

Guided missile

Egalitarian/decentralized

Person/
informal style

Task/
formal style

– Power of orientation
– Personal relationships
– Entrepreneurial
– Affinity/trust
– Power of person

Family

– Role orientation
– Power of position/role
– Job description/evaluation
– Rules and procedures
– Order and predictability

Eiffel Tower

Section 7.8 Special Issues and Challenges in Organizational Communication

These culture types have notable organizational implications. For example, leaders need to
be aware of the type of culture in which they operate and must adapt their leadership style
accordingly. A leadership style that relies on formal power, authority, and structure may be
effective in Eiffel Tower cultures but may be overbearing and counterproductive in an incuba-
tor culture. Similarly, many North American multinationals attempt to introduce guided mis-
sile principles in countries that are predominantly hierarchical and reliant on personal rela-
tionships (family cultures). This misfit tends to create conflict and promote an “us-and-them”
mentality between leaders from the parent company and locals who may perceive them, at
best, as culturally naive or incompetent and, at worst, as condescending and imposing on
their cultural heritage.

Figure 7.4: Trompenaars’ four diversity cultures

– Person oriented
– Power of the individual
– Self-realization
– Commitment to oneself
– Professional recognition
Incubator
– Task orientation
– Power of knowledge/expertise
– Commitment to (tasks)
– Management by objectives
– Pay for performance
Guided missile
Egalitarian/decentralized
Egalitarian/decentralized
Person/
informal style
Task/
formal style
– Power of orientation
– Personal relationships
– Entrepreneurial
– Affinity/trust
– Power of person
Family
– Role orientation
– Power of position/role
– Job description/evaluation
– Rules and procedures
– Order and predictability
Eiffel Tower

Find Out for Yourself: Culture and Leader Effectiveness:
The GLOBE Study

The Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Program
studies the intersection between leader characteristics and many of the cultural dimensions
discussed in this section. Visit the following website to read a summary of the GLOBE study.

Culture and Leader Effectiveness: The GLOBE Study

What Did You Learn?

1. In which “country cluster” does the country in which you live fall?
2. To which leadership style(s) does your country relate most? Least? Were you surprised

by these results?

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http://www.inspireimagineinnovate.com/PDF/GLOBEsummary-by-Michael-H-Hoppe

227

Summary and Conclusion

Although leadership and communication are critical for organizational success, they are
two of the most difficult organizational processes to understand, develop, and effectively
manage. Organizational decision makers are strongly advised to give these two dimensions
of organizational success special attention and to leverage them as a sustainable source
of competitive advantage. This is because—unlike many other tangible resources such as
buildings, machinery, equipment, or even state-of-the-art technology, which are becoming
easier for competitors to copy and imitate—effective leadership and communication are
unique for each organization. One size does not fit all. Every organization has to incremen-
tally develop its own leadership and communication processes, which should fit its mission,
vision, values, and strategic orientation. The approaches in this chapter offer a starting point
for thinking more strategically about leadership and communication. Whether you are a
leader or a follower in a large or midsize organization or are considering starting your own
business or working for a small business, leadership and communication should be in the
forefront as you make decisions for your organization.

Consider This: Adapting Your Communication Style
to Cross-Cultural Differences

Based on what you have learned in this section, how would you vary your verbal and nonver-
bal communication approaches in order to communicate each of the following messages to
one of your employees if you were leading a team in Canada, France, India, Switzerland, Brazil,
and Saudi Arabia?

• “You are a superior performer. Well done!”
• “Your performance does not meet expectations.”
• “You need to express your opinions more assertively.”
• “You need to stop asking for advice every step of the way and start thinking more

independently.”
• “We have to let you go.”
• “I am very interested in your ideas and opinions.”

achievement-oriented leadership A
leadership style that sets challenging goals
for employees and emphasizes high perfor-
mance expectations.

authentic leadership theory A long-term
developmental process that draws from the
leader’s life experiences, psychological capi-
tal (hope, efficacy, resilience, and optimism),
moral perspective, and a highly supportive
organizational climate. The result of this

process is higher self-awareness, relational
transparency, internalized moral perspective,
and balanced processing, which in turn helps
the leader better regulate his or her behav-
iors toward continuous self-development.

behavioral theories of leadership Theo-
ries that focus more on leaders’ observable
behaviors than on their traits, suggesting
that leadership is attainable by anyone with
the correct training and experiences.

Key Terms

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228

Summary and Conclusion

charismatic leader A leader who chal-
lenges the status quo, rallies followers
around an inspirational vision, empowers
followers, supports followers’ needs, and
takes personal risks to achieve success.

coercive power Power that is based on fear
of punishment.

communication The transfer of meaning
from one person to another.

communication network Also known as
the grapevine, a network that arises when
workers establish lines of communication
among themselves, including peers, mem-
bers of both higher and lower hierarchical
levels, and workers in different areas of the
company.

consideration A people-centric leadership
style that includes relationship behaviors
expressed as displays of trust, camaraderie,
and regard for workers’ feelings.

contingency theories of leadership Theo-
ries that address the complex ways in which
situational factors interact with a leader’s
style and impact his or her effectiveness.

diagonal communication Communication
that flows between managers and workers
located in different parts of the business.

directive leadership A leadership style
that provides task structure by instructing
employees what work to do and when to
complete it.

downward vertical communica-
tion Sometimes referred to as hierarchical
communication, messages that flow from a
higher to a lower level of the organizational
hierarchy.

emotional intelligence (EI) Self-awareness
and the ability to detect others’ emotions and
to manage one’s own emotions.

ethical leadership theory An emerging
theory that emphasizes integrity and altru-
ism of the leader, and collective motivation
and encouragement for the followers.

expert power Power that stems from
a leader’s special skills, knowledge, and
expertise.

Fiedler’s contingency model A contin-
gency model of leadership that categorizes
leaders as either task oriented or relation-
ship oriented and maintains that the effec-
tiveness of either type depends on the situ-
ation and the amount of control the leader
has over it.

idiosyncrasy credit The latitude and dis-
cretion to deviate from expectations based
on positive past encounters and conformity
to norms.

implicit leadership theory (ILT) A lead-
ership theory that defines leadership from
the follower’s point of view; leaders who fit
their followers’ model of their ideal leader
are likely to be more effective.

initiating structure A task-centric leader-
ship style in which the leader provides clear
guidance and structure to help employees
achieve specific goals.

lateral communication Communication
that flows between peers at the same level of
a work group.

leader–member exchange theory
(LMX) A leadership theory that emphasizes
the way in which the leader–follower rela-
tionship affects the leadership process.

leadership derailment The process by
which a leader displays increasingly ineffec-
tive behavior.

legitimate power Power that stems
from one’s job title or position within the
organization.

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229

Summary and Conclusion

network centralization The number of
people in charge of controlling the flow of
communication.

network connectivity The extent to which
members of a network are connected to each
other, either directly or indirectly.

network density The number of connec-
tions that exist between network members
in relation to the total number that could
possibly form.

participative leadership A leadership
style that involves employees in decisions
that affect their work.

path–goal theory A theory that proposes
four leadership styles leaders can utilize to
motivate employees to achieve their goals:
directive, supportive, participative, and
achievement oriented.

power The capacity for one person to influ-
ence the behaviors of another.

referent power Power that develops out of
admiration for and the desire to be like the
leader, regardless of formal level of leader-
ship or actual relationship to follower.

reward power Influence through positive
rewards.

spiritual leadership theory An emerging
theory that emphasizes intrinsic motivation
of the followers through a sense of member-
ship or community and a sense of calling.

supportive leadership A leadership style
that displays concern for the best interest of
the employees.

trait theories Theories that assume leader-
ship has a biological origin and that leader-
ship is an innate quality that only a very few
possess.

transactional leadership A framework in
which leaders use rewards and punishment
to guide and motivate followers along a path
toward established goals.

transformational leadership A framework
in which leaders are concerned with improv-
ing followers’ performance and motivation
and developing them to their fullest poten-
tial through inspirational motivation, ideal-
ized influence, intellectual stimulation, and
individualized consideration.

upward vertical communication Commu-
nication that flows from a lower to a higher
level of a work group.

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