contemporary leadership theories and principles
The earliest theories of leadership were the Great Man Theories, which emerged in the late 1800s. If you have work experience, you may have witnessed the different types of relationships managers form with their employees. Contemporary leadership styles include quantum leadership, charismatic leadership, transactional leadership, transformational leadership, relational leadership, shared leadership and servant leadership. Agle, B. R., Nagarajan, N. J., Sonnenfeld, J. Contemporary Educational Theories. In performance-oriented cultures, how the leader distributes rewards seem to be the relevant factor, whereas in people-oriented cultures, whether the leader treats people with dignity is more relevant (Erdogan, et. Find an interview on why leadership theory matters, at this link. Wayne, S. J., Shore, L. M., & Liden. Leadership is a skill that can be learned, but it takes intentionality. Even when their objective performance does not warrant it, those who have a good relationship with the leader tend to receive positive performance appraisals (Duarte, et. 1.0 Introduction In this report, I discuss the development of selected management and leadership theories and I evaluate how these theories have been applied to a contemporary organisation that I chose for my reference. Although the contemporary theories tend to focus on human behaviour and motivation on workplace, there is no best strategy. Are transformational leaders more effective than transactional leaders? Academy of Management Journal, 40, 82–111. Fortunately, Yosko was a seasoned leader and she intuited where to start. Chapter 1: Introduction to Principles of Management, 1.1 Introduction to Principles of Management, 1.2 Case in Point: Doing Good as a Core Business Strategy, 1.4 Leadership, Entrepreneurship, and Strategy, 1.5 Planning, Organizing, Leading, and Controlling, 1.6 Economic, Social, and Environmental Performance, 1.7 Performance of Individuals and Groups, 1.8 Your Principles of Management Survivor’s Guide, Chapter 2: Personality, Attitudes, and Work Behaviors, 2.2 Case in Point: SAS Institute Invests in Employees, 2.6 The Interactionist Perspective: The Role of Fit, 2.8 Developing Your Positive Attitude Skills, Chapter 3: History, Globalization, and Values-Based Leadership, 3.1 History, Globalization, and Values-Based Leadership, 3.2 Case in Point: Hanna Andersson Corporation Changes for Good, 3.3 Ancient History: Management Through the 1990s, 3.4 Contemporary Principles of Management, 3.6 Globalization and Principles of Management, 3.7 Developing Your Values-Based Leadership Skills, Chapter 4: Developing Mission, Vision, and Values, 4.1 Developing Mission, Vision, and Values, 4.2 Case in Point: Xerox Motivates Employees for Success, 4.3 The Roles of Mission, Vision, and Values, 4.4 Mission and Vision in the P-O-L-C Framework, 4.7 Crafting Mission and Vision Statements, 4.8 Developing Your Personal Mission and Vision, 5.2 Case in Point: Unnamed Publisher Transforms Textbook Industry, 5.3 Strategic Management in the P-O-L-C Framework, 5.5 Strategy as Trade-Offs, Discipline, and Focus, 5.6 Developing Strategy Through Internal Analysis, 5.7 Developing Strategy Through External Analysis, 5.8 Formulating Organizational and Personal Strategy With the Strategy Diamond, 6.2 Case in Point: Nucor Aligns Company Goals With Employee Goals, 6.4 From Management by Objectives to the Balanced Scorecard, 6.5 Characteristics of Effective Goals and Objectives, 6.6 Using Goals and Objectives in Employee Performance Evaluation, 6.7 Integrating Goals and Objectives with Corporate Social Responsibility, Chapter 7: Organizational Structure and Change, 7.2 Case in Point: Toyota Struggles With Organizational Structure, 7.4 Contemporary Forms of Organizational Structures, 7.6 Planning and Executing Change Effectively, 7.7 Building Your Change Management Skills, 8.2 Case in Point: Google Creates Unique Culture, 8.5 Creating and Maintaining Organizational Culture, 8.7 Developing Your Personal Skills: Learning to Fit In, 9.2 Case in Point: Networking Powers Relationships, 9.3 An Introduction to the Lexicon of Social Networks, 9.4 How Managers Can Use Social Networks to Create Value, 9.5 Ethical Considerations With Social Network Analysis, 9.6 Personal, Operational, and Strategic Networks, Chapter 10: Leading People and Organizations, 10.2 Case in Point: Indra Nooyi Draws on Vision and Values to Lead, 10.3 Who Is a Leader? Personnel Psychology, 52, 591–620. Initiative 4. These contemporary concepts of leadership inform the APS Leadership Development Strategy (2011) and resulting talent and leadership development activities. Heneman, R. L., Greenberger, D. B., & Anonyuo, C. (1989). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Transformational leadership, conservation, and creativity: Evidence from Korea. However, personality explains only around 10% of the variance in charisma (Bono & Judge, 2004). Nursing has drawn from both classic and contemporary thinkers. The earliest theories of leadership were the Great Man Theories, which emerged in the late 1800s. An example of an authentic leader is Howard Schultz, the founder of Starbucks coffeehouses. al., 2007; Shin & Zhou, 2003; Wang, et. â¢ Trait theory of leadership â¢ Behavioral theories of leadership â¢ Contingency model of leadership â¢ Contemporary models of leadership Leadership can be explained by exploring these four different approaches. Schaubroeck, J., Lam, S. K., & Cha, S. E. (2007). Within the same work group, they may have in-group members who are close to them and out-group members who are more distant. Maturity 5. The authentic leadership approach embraces this value: its key advice is “be yourself.” Think about it: We all have different backgrounds, different life experiences, and different role models. Impact of transformational leadership on follower development and performance: A field experiment. Leadership and performance beyond expectations. Finally, the relationship development occurs in a slightly different manner in different types of companies; corporate culture matters in how leaders develop these relationships. (2007). You were either lucky enough to be born with them, or you weren’t. Contemporary approaches to leadership include transformational leadership, leader-member exchange, servant leadership, and authentic leadership. If minorities, women, or people with disabilities routinely identify as out-group members, the leader should ask the question, “What is required to be an in-group member here, and are we creating unintentional barriers for others?”. However, research does not support this idea. Goodwin, D. K. (2005, June 26). Define authentic leadership and evaluate its potential for leadership effectiveness. A. Contemporary approaches to leadership include transformational leadership, leader-member exchange, servant leadership, and authentic leadership. According to leader-member exchange (LMX) approach, the unique, trust-based relationships leaders develop with employees is the key to leadership effectiveness. Authentic leadership requires understanding oneself. A structural equation model of the effects of negative affectivity, leader-member exchange, and perceived job mobility on in-role and extra-role performance: A Chinese case. Without this, the follower will not want to do what the leader desires. In addition to a clear focus on having a moral compass, servant leaders are also interested in serving the community. Major contemporary leadership styles are transformational, transactional and inspirational leadership. Find out about charismatic leadership and how it relates to leader performance. Intelligence 10. What is charisma? The early 21st century has been marked by a series of highly publicized corporate ethics scandals: between 2000 and 2003, we witnessed Enron, WorldCom, Arthur Andersen, Qwest, and Global Crossing shake investor confidence in corporations and leaders. While it is true that charismatic leaders may sometimes achieve great results, the search for charismatic leaders under all circumstances may be irrational. The essence of transformational theories is that leaders transform their followers through their inspirational nature and charismatic personalities. Each of these categories, like contingency theories, situational theories, relationship theories and participative theories, characterize leadership models based on how an individual leads his team. Take an orchestra, for instance, one that consists of all the best musicians in the world but lacks a conductor. al., 2005; George, 2007; Ilies, et. Leadership Excellence, 24(9), 16–17. Journal of Management, 34, 89–126. For many of us, our first understanding of leadership may have aligned with these theories: leaders were often men with dominant personalities. Erdogan, B., Kraimer, M. L., & Liden, R. C. (2004). Trust in leadership: Meta-analytic findings and implications for research and practice. A leader is crucial to the success of every team. In other words, the leader may interpret the same situation differently, depending on which employee is involved and may reward low LMX employees less even when they are performing well. Mainly the leadership theories categorize the qualities of the leader and his subordinates or followers. What are the advantages of adopting such a leadership style? Leadership Quarterly, 16, 419–439. They operate within different structures, work with different types of people, and they have to be adaptable. (2004). Adaptability 2. Servant leadership: A journey into the nature of legitimate power and greatness (p. 335). Wikimedia Commons – Ataturk and the flag of Turkey – public domain. Leader-member exchange and citizenship behaviors: A meta-analysis. (Starting, first, with a Y chromosome.) All of these companies had what he calls Level 5 leaders who build organizations through their personal humility and professional will. David Wolfskehl, of Action Fast Print in New Jersey, founded his printing company when he was 24. al., 2004; Major, et. Journal of Applied Psychology, 70, 777–781. al., 2003). Finally, contemporary theories of leadership wrestle with the motivations of leaders: can you be a leader if your goal is selfish or even malicious? Ilies, R., Morgeson, F. P., & Nahrgang, J. D. (2005). _____ I do work for my supervisor that goes beyond what is specified in my job description. Do you know any leaders whose style resembles servant leaders? (1993). Perceived organizational support and leader-member exchange: A social exchange perspective. But for many others, our first forays into leadership felt much like Yosko’s first day: knowing how to start was not obvious. Because they occur naturally, some leaders may not be aware of the power that lies in them. al., 2005; Sparrowe, 2005). al., 1996). Burns identified two types of leadership. Sillygwailo – Howard Schultz Starbucks – CC BY 2.5. Authentic leadership focuses on transparent and ethical leader behaviour and encourages open sharing of information needed to make decisions while accepting followers' inputs (Avolio, et al., 2009). Effects of dyadic quality and duration on performance appraisal. Continue learning about leadership theory in the next article in this series, where we’ll discuss Adaptive Leadership, Strengths Based Leadership, and Servant Leadership, along with the usefulness of leadership theories. Research shows that high-quality LMX members are more satisfied with their jobs, more committed to their companies, have higher levels of clarity about what is expected of them, and perform at a higher level (Gerstner & Day, 1997; Hui, et. Research shows that transformational leadership is a powerful influence over leader effectiveness as well as employee satisfaction (Judge & Piccolo, 2004). (Perhaps you can see one primary fault with these theories, just from their name: they assumed only half the worldâs population could even be considered for leadership.) al., 2000; Settoon, et. The master of the game. Leadership theory scholar Dr. Peter Northouse defines leadership as “a process whereby an individual influences a group of individuals to achieve a common goal.” This definition makes clear that leadership is not a trait or behavior, and it is not a position. al., 1975; Erdogan & Liden, 2002; Gerstner, 1997; Graen & Uhl-Bien 1995; Liden & Maslyn, 1998). That seems to depend on many factors. Engle, E. M., & Lord, R. G. (1997). Embracing transformational leadership: Team values and the impact of leader behavior on team performance. What are the characteristics of transformational leaders? One example of an authentic leader is Howard Schultz, the founder of Starbucks coffeehouses. Academy of Management Journal, 47, 368–384. A score of 7+ indicates a high-quality LMX in terms of contribution. Social exchange in organizations: Perceived organizational support, leader-member exchange, and employee reciprocity. Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. Tolerance to stress 8. How would such a style be developed. A score of 7+ indicates a high-quality LMX in terms of professional respect. In this section, we will review the most recent developments in the field of leadership. First, transformational leaders are charismatic. This is the Trait Theory. A score of 3 to 4 indicates a low LMX in terms of professional respect. “Can you see the real me?” A self-based model of authentic leader and follower development. Leader-member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. For every charismatic hero such as Lee Iacocca, Steve Jobs, and Virgin’s Sir Richard Branson, there are charismatic personalities who harmed their organizations or nations, such as Adolph Hitler of Germany and Jeff Skilling of Enron. Piccolo, R. F., & Colquitt, J. Charisma refers to behaviors leaders demonstrate that inspire confidence, commitment, and admiration toward the leader (Shamir, et. Figure 10.15 Factors Contributing to the Development of a High-Quality Leader-Member Exchange and Its Consequences. Find our posts here. Role of leadership in the employee withdrawal process: A constructive replication. The four major leadership theories being addressed are: (1) Transformational Leadership Theory, (2) Transactional Leadership Theory, (3) Charismatic Leadership Theory, â¦ A score of 5 to 6 indicates an average LMX in terms of professional respect. Administrative Science Quarterly, 50, 505–535. Gerstner, C. R., & Day, D. V. (1997). One problem in a low-quality exchange is that you may not have access to the positive work environment available to the high-quality LMX members. Servant leadership: Development of a multidimensional measure and multi-level assessment. Authentic leadership: Development and validation of a theory-based measure. Therefore, in addition to self-reflection, feedback from others is needed to gain a true understanding of one’s behavior and effect on others. ), Leadership (pp. Why is transformational leadership more effective? A., & Srinivasan, D. (2006). They told her, “Just do whatever a president does.”. New York: Harper & Row. We still see this theory at play unconsciously today, when someone is overlooked for a leadership role because of a quiet personality. In fact, charisma has a dark side. al., 2006). The concept of transformational leadership takes a different approach to solving the dilemma. Witnessing his father losing jobs because of medical problems, he became passionate about a company’s need to care for its employees. Research shows that when leaders demonstrate transformational leadership behaviors, followers are more likely to trust the leader. Leadership theories Relationship-tasks orientation and Management theory Leadership and management Leadership Theory In authoritarian leadership style, the leaders maintain strong control over all aspects of the group and its activities, provide directions by giving others that the group are expected to carry out without questions (catalano 2006). In this article, we outline five current leadership theories, and offer resources and suggestions for integrating the theories into your own leadership practice. Theories of Leadership: During the 20th Century, there has been a great interest in research on leadership. Northouse, P.G. However, transactional leaders ensure that employees demonstrate the right behaviors because the leader provides resources in exchange (Bass, 1985; Burns, 1978). Erdogan, B., Liden, R. C., & Kraimer, M. L. (2006). In high-quality LMX relationships, the leader forms a trust-based relationship with the member. Multidimensionality of leader-member exchange: An empirical assessment through scale development. Justice and leader-member exchange: The moderating role of organizational culture. In the shadow of the boss’s boss: Effects of supervisors’ upward exchange relationships on employees. Gardner, W. L., Avolio, B. J., Luthans, F., May, D. R., & Walumbwa, F. (2005). Journal of Applied Psychology, 92, 309–320. Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory over 25 years: Applying a multi-level multi-domain perspective. Academy of Management Journal, 37, 499–521. Effective nursing leadership nowadays creates healthy work environments that maintain nurses and allow them to deliver best quality care for the patients. Personality and transformational and transactional leadership: A meta-analysis. _____ I do not mind working my hardest for my supervisor. The transformational leadership approach highlights the importance of leader charisma, inspirational motivation, intellectual stimulation, and individualized consideration as methods of influence. ©Center for Values-Driven Leadership 2017 // Benedictine University // College of Business // 5700 College Road, Lisle, IL 60532 //, Coronavirus Resources for Values-Driven Leaders, Appreciative Inquiry | Executive Education, Leadership & Change Partner Organizations, Start 2021 with intention. Passive management by exception is similar in that it involves leaving employees alone, but in this method, the manager waits until something goes wrong before coming to the rescue. According to this approach, the primary mission of the leader is to develop employees and help them reach their goals. al., 1997). An empirical analysis of the relationships among organizational performance, environmental uncertainty, and top management team perceptions of CEO charisma. al., 2007). al., 2000). A longitudinal study on the early development of leader-member exchanges. Journal of Applied Psychology, 89, 755–768. Charismatic individuals have a “magnetic” personality that is appealing to followers. Define servant leadership and evaluate its potential for leadership effectiveness. These relationships do not have to involve actively disliking each other, but the leader and member do not go beyond their formal job descriptions in their exchanges. Theories of Leadership 1 Principles of Administration For any administration -- business, government, educational institutions -- to function properly, the principles of management which include hierarchy, control, unity of command, delegation of authority, specialization, objectives, centralization and decentralization, must be adhered to. As a child, Schultz witnessed the job-related difficulties his father experienced because of medical problems. Khurana, R. (September 2002). Leadership: Theory and practice (7th ed.). We must acknowledge that there is a connection between some personality traits and charisma. al., 1996; Tierney, 1999; Wayne, et. The trait theory was the result of the first systematic effort of psychologists and other researchers to understand leadership. Additionally, LMX theory has important implications for improving diversity and inclusion. Interestingly, high performance on the employee’s part does not seem to be enough to develop a high-quality exchange with the leader. Self-confidence 6. Even though servant leadership has some overlap with other leadership approaches such as transformational leadership, its explicit focus on ethics, community development, and self-sacrifice are distinct characteristics of this leadership style. One of the oldest theories about leadership suggests that leaders have certain traits that make them effective. Support from the top: Supervisors’ perceived organizational support as a moderator of leader-member exchange to satisfaction and performance relationships. In fact, transformational leaders increase the intrinsic motivation of their followers, build more effective relationships with employees, increase performance and creativity of their followers, increase team performance, and create higher levels of commitment to organizational change efforts (Herold, et. Dominance 7. A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process. al., 1994). He marks the day he started asking employees what he can do for them as the beginning of his company’s new culture. Bennis (1994) made a strong argument for leadership, stating that quality of life depends on the quality of leaders. They say what they think. For leaders, LMX offers a greater challenge, because making your team as productive as possible will mean finding ways to turn out-group members into in-group members. Moreover, they are more likely to be given the benefit of the doubt. Personnel Psychology, 57, 305–332. The transformational leadership approach highlights the importance of leader charisma, inspirational motivation, intellectual stimulation, and individualized consideration as methods of influence. Mustafa Kemal Ataturk, the founder of Turkish Republic and its first president, is known as a charismatic leader. Individualized concern, the final factor of transformational leadership, may offer one path to converting out-group members. Employee happiness is seen as an end in itself, and servant leaders sometimes sacrifice their own well-being to help employees succeed. Colella, A., & Varma, A. At times, it may seem that a leader’s smartest strategy would be to act as a social chameleon, changing his or her style whenever doing so seems advantageous. In the worst case, they have the potential to create a negative work environment characterized by favoritism and unfairness. Journal of Applied Psychology, 92, 269–277. Add your score for 10, 11, 12 = _____ This is your score on the Professional Respect factor of LMX. These theories are: â¢ Some personality traits may lead people naturally into leadership roles. Do certain personality traitsmake people better suited to leadership roles, or do characteristics of the situation make it more likely that certain people will take charge? >>Read more in part 2 of this series. Authentic leadership and the narrative self. Transformational leadership and job behaviors: The mediating role of core job characteristics. Leadership Quarterly, 16, 315–338. Journal of Applied Psychology, 82, 827–844. Learn about the difference between transformational and transactional leaders. For employees who have no interest in advancing their careers in the current company (such as a student employee who is working in retail but has no interest in retail as a career), having a low-quality exchange may afford the opportunity to just do one’s job without having to go above and beyond these job requirements. Herold, D. M., Fedor, D. B., Caldwell, S., Liu, Y. Tweet Share. We will explore: Before we begin, we need to put leadership theory and practice in the context of history, to understand how the field of study has evolved. Even though every member of the orchestra can play perfectly by themselves, they will only produce an incompatible melody in the absence of a conductor. You are not made a leader by your job title, you are made a leader by your influence. Journal of Applied Psychology, 91, 298–310. Academy of Management Journal, 49, 327–340. Leaders have to be a lot of things to a lot of people. What does it mean to be a servant leader? Description of Contemporary Leadership Theories Participative leadership style. They can also test to see whether the employee is trustworthy by delegating certain tasks when the employee first starts working with the manager (Bauer, et. Therefore, managers are advised to be aware of how they build these relationships; put forth effort in cultivating these relationships consciously; be open to forming good relationships to people from all backgrounds regardless of their permanent characteristics such as sex, race, age, or disability status; and prevent these relationships from leading to an unfair work environment. Buchanan, L. (May, 2007). Ferris, G. R. (1985). Thus, one key characteristic of authentic leaders is that they are self-aware. Kraimer, M. L., Wayne, S. J., & Jaworski, R. A. Instead of trying to fit into societal expectations about what a leader should be like, act like, or look like, authentic leaders derive their strength from their own past experiences. al., 2006; Erdogan, et. Given all they receive, these employees are motivated to reciprocate to the manager, and therefore they demonstrate higher levels of citizenship behaviors such as helping the leader and coworkers (Ilies, et. Early leadership theories focused on what qualities distinguished between leaders and followers (i.e., traits), while subsequent theories looked at other variables such as behavioural and situational factors and skill levels. To begin our exploration of leadership theories, let’s start with one of the most researched and referenced today, transformational leadership. Development of a leader-member exchange: A longitudinal test. Servant leadership approach defines the leader’s role as serving the needs of others. Good personality 2. Journal of Applied Psychology, 80, 418–431. Leadership experts warn that when organizations are in a crisis, a board of directors or hiring manager may turn to heroes who they hope will save the organization and sometimes hire people who have no other particular qualifications outside of perceived charisma (Khurana, 2002). Flexibility 7. A longitudinal investigation of newcomer expectations, early socialization outcomes, and the moderating effects of role development factors. Back To: LEADERSHIP What are Contemporary Approaches to Leadership? Rules and regulations are flexible, guided by group norms. If you have ever been in a high-quality LMX relationship with your manager, you may attest to its advantages. As frequent contributors at Forbes.com, our team offers fresh insights for business leaders. What are the advantages and disadvantages of charismatic leadership? 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