Category Archives: Leadership

The Human Side of Organizational Change (IO Psychology)

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 Topic: Change Management, Leadership
Publication: Personnel Psychology (2012)
Article: The Role of Affect and Leadership during Organizational Change
Authors: M.-G. Seo, M. S. Taylor, N. S. Hill, X. Zhang, P. E. Tesluk, N. M. Lorinkova
Reviewed By: Lauren A. Wood

Organizational change initiatives have become increasingly commonplace in the modern workplace. Despite their increased prevalence, typically, change efforts fail to achieve the organization’s desired results. Although multiple reasons for change failure have been identified, researchers are increasingly taking notice of the role that the “human element” plays in the change process.

A few human factors have been identified as particularly important in the early stages of the change process: employee affective reactions during the initiative (i.e., positive and negative), commitment to the change, and the manager’s transformational leadership behavior. Additionally, these factors have consequences in later stages of the change. For example, they can impact continued commitment change and behavioral actions (i.e., support for the change, resistance to change, creative change behavior).

To examine the effects that human factors play in the success (or failure) of a change initiative, the authors developed and tested a longitudinal model of organizational change. The results revealed that employee positive affect in the early stages of the change lead to increased employee commitment, support, and creativity in the later organizational change stages. Conversely, the opposite relationship was shown for negative affect – employee negative affect experienced early negativity impacted both behavior support for the change and continued commitment to the initiative. Additionally, employee commitment early in the change impacted behavioral actions and continued commitment to the change in later change stages.  Finally, manager’s transformational leadership ability was positively related to employee positive affect and commitment and it was negatively related to employee negative affect.

What can organizations do to ensure that future change initiatives do not fail due to the role of human factors? First, encourage managers to vigorously promote positive change experiences and attempt to diminish the effects of negative change experiences. For example, mangers should provide clear communication about the change and each employee’s role in making the change a success. Second, train and encourage managers to engage in transformational leadership behaviors such as articulating a change vision and supporting employee through the initiative. Finally, work to build employees’ perceptions of commitment to the change in the early stages of a change because commitment early on, spills over into both increased commitment later on as well as positive behavioral actions.

Seo, M., Taylor, M. S., Hill, S. N., Zhang, X., Tesluk, P., & Lorinkova, N. M. (2012). The role of affect and leadership during organizational change. Personnel Psychology, 65, 121-165.

human resource management, organizational industrial psychology, organizational management

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Predicting executives’ ability to think strategically (IO Psychology)

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Topic: Leadership, Personality
Publication: Personnel Psychology (Winter 2011)
Article: Developing executive leaders: The relative contribution of cognitive ability, personality, and the accumulation of work experience in predicting strategic thinking competency.
Authors: Lisa Dragoni, In-Sue Oh, Paul Vankatwyk, & Paul E. Tesluk
Reviewed by: Alexandra Rechlin

Effective leaders need to think strategically. So, if you’re looking to develop leaders or choose someone for a leadership position, it would help to know what predicts strategic thinking. In a recent study, Lisa Dragoni and her colleagues investigated how work experience, cognitive ability, and personality traits relate to executives’ ability to think strategically.

Executives’ cognitive ability and openness to experience were related to their strategic thinking competency, with smarter executives and those who were more open to experience exhibiting better strategic thinking. To determine the accumulated work experience of participants, the authors assessed the extent to which they had taken on different roles and responsibilities (i.e., contributor, manager, lead strategist).  Extraverted executives had more accumulated work experience, and the amount of work experience was also related to executives’ strategic thinking competency.

The authors weighed the relative importance of the different predictors in their analysis. Cognitive ability predicted 78.9% of the observed variance in strategic thinking competency (in contrast, accumulated work experience predicted 7%, openness predicted 2.6%, and extraversion predicted 2.3%).

So, on a practical level, what does this all mean? Cognitive ability is a great predictor of the ability to think strategically. In fact, it’s more important than accumulated experience. However, an executive who is less intelligent can somewhat make up for that with more work experience; it just might take him/her a little longer to learn from those experiences than it would for a more intelligent executive. You can’t change the intelligence of the leaders in your organization, but you can expose them to a variety of work experiences in which they take on different roles and responsibilities. Bottom line:  the authors suggest that in a selection situation for a leadership position, both work experience and cognitive ability should be used to make decisions.

Dragoni, L., Oh, I.-S., Vankatwyk, P., & Tesluk, P. E. (2011). Developing executive leaders: The relative contribution of cognitive ability, personality, and the accumulation of work experience in predicting strategic thinking competency. Personnel Psychology, 64, 829-864. doi: 10.1111/j.1744-6570.2011.01229.x.

human resource management, organizational industrial psychology, organizational management

 

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How leaders may affect followers’ resistance to change (IO Psychology)

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Topic: Leadership, Change Management
Publication: Personnel Psychology (AUTUMN 2011)
Article: Leadership and employees’ reactions to change: The role of leaders’ personal attributes and transformational leadership style Authors: Oreg, S., & Berson, Y.
Reviewed by: Alexandra Rechlin

Does your organization go through change? I’d be willing to bet that it does, so you may be interested in what kind of impact leaders have on their followers’ intentions to resist organizational change. The authors of this study investigated how the traits, values, and behaviors of leaders explain their followers’ resistance intentions.

The participants in this study were principals (leaders) and teachers (followers) in the Israeli public school system. The more that leaders were open to an organizational change, the less their followers intended to resist the change. Leaders’ dispositional resistance to change also predicted followers’ dispositional resistance to change.

To measure transformational leadership, the authors assessed the extent that leaders used inspirational leadership, intellectual stimulation, and individualized consideration. As leaders’ transformational leadership behavior increased (especially inspirational leadership), followers’ resistance intentions decreased. The relationship between employees’ dispositional resistance to change and their resistance intentions also weakened when the leaders’ transformational leadership behaviors increased.

So what explains these findings? The authors argue that the decisions that leaders make are influenced by their traits and values, and those decisions (through organizational culture and climate) will influence the beliefs and intentions of followers. Through transformational leadership behaviors, leaders can influence followers’ perceptions of change; instead of change being perceived as a threat, change can be seen as an opportunity. Transformational leaders also motivate their followers and provide a common vision, lessening the effect of an individual follower’s personality.

So what does this mean for practitioners? To decrease employees’ resistance to change, you might want to increase leaders’ awareness of their own attitudes towards change and how their change orientation may affect their employees. Training, mentoring, and leadership development programs can be implemented to teach leaders awareness, ways to mitigate their natural orientation to change (if it’s negative), and transformational leadership behaviors (e.g., how to create a shared vision).

Oreg, S., & Berson, Y. (2011). Leadership and employees’ reactions to change: The role of leaders’ personal attributes and transformational leadership style. Personnel Psychology, 64, 627-659. doi: 10.1111/j.1744-6570.2011.01221.x

human resource management, organizational industrial psychology, organizational management

 

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Leadership Potential, Age, and Gender: What if you’re not a young man? (IO Psychology)

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Topic: Leadership
Publication: Personnel Psychology (AUTUMN 2011)
Article: Age and gender-based role incongruence: Implications for knowledge mastery and observed leadership potential among personnel in a leadership development program
Authors: Hirschfeld, R. R., & Thomas, C. H.
Reviewed by: Alexandra Rechlin

In your organization, you likely (and certainly should) have females and older workers in your leadership pipeline. However, could their age or gender affect their observed leadership potential (OLP) or their mastery of leadership knowledge? Hirschfeld and Thomas (2011) used archival data to investigate these questions.

This study utilized a real-world sample consisting of participants in the US Air Force leadership development program. The authors found that age was negatively related to OLP, with OLP being lower for older participants. Age also directly predicted actual mastery of teamwork knowledge and mastery of strategy knowledge. Older participants, overall, scored lower on tests of teamwork knowledge and strategy knowledge than did younger participants. These lower scores on teamwork knowledge and strategy knowledge partially mediated (partially explained) the relationship between age and OLP.

Gender was not directly related to OLP, contrary to what the researchers had predicted. However, female participants demonstrated less mastery of strategy knowledge than did male participants. The researchers had predicted this relationship; they argued that women would view top leadership positions as being incongruent with their gender, so women would focus less on mastering strategy knowledge. In this study, lower scores on mastery knowledge for women fully mediated (completely explained) the relationship between gender and OLP

So what can or should be done based on these findings? Providing managers with training regarding age stereotypes could be beneficial, as could providing training geared toward the learning styles and self-efficacy of older adults. Women in an organization should feel that they can achieve top leadership positions, which would lessen the feeling of gender-based role incongruence and reduce gender differences in mastery of strategy knowledge.

Hirschfeld, R. R., & Thomas, C. H. (2011). Age and gender-based role incongruence: Implications for knowledge mastery and observed leadership potential among personnel in a leadership development program. Personnel Psychology, 64, 661-692. doi: 10.1111/j.1744-6570.2011.01222.x

human resource management, organizational industrial psychology, organizational management

 

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Leadership and Overconfidence (I/O Psychology)

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Topic: Leadership
Publication: The Leadership Quarterly (AUG 2011)
Article: When confidence is detrimental: Influence of overconfidence on leadership effectiveness
Authors: Shipman, A. S., & Mumford, M. D.
Reviewed by: Alexandra Rechlin

It is widely acknowledged within IO psychology that leaders should be confident, but can they be overconfident? And how can overconfidence impact leader effectiveness? To answer these questions, Shipman and Mumford (2011) conducted an experiment in which undergraduates responded to a made-up leadership scenario.

The authors found that overconfidence consisted of two dimensions: (1) seeing deficiencies, and (2) expectations of positive outcomes. In other words, an overconfident leader failed to see deficiencies and expected positive outcomes. In this experiment, leaders who were overconfident regarding their expectation of positive outcomes developed less effective plans but more emotionally appealing vision statements. Leaders whose overconfidence was associated with failure to see deficiencies developed less effective plans and less practical vision statements. In fact, those who had the lowest levels of confidence related to failure to see deficiencies were the leaders who created the best plans.

Although we should encourage leaders to be confident, we must be wary of encouraging overconfidence. In fact, leaders should try to keep their confidence fairly low when it is necessary to see deficiencies and make plans. Overconfidence may be reduced through critical self-evaluation.

Shipman, A. S., & Mumford, M. D. (2011). When confidence is detrimental: Influence of overconfidence on leadership effectiveness. The Leadership Quarterly, 22, 649-665. doi: 10.1016/j.leaqua.2011.05.006

human resource management,organizational industrial psychology, organizational management

Leadership

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         The Predictive Power of Grit: How to Select Successful People

Topic: Leadership, Personality
Publication: The Leadership Quarterly (JUN 2011)
Article: Leader development and the dark side of personality
Authors: Harms, P. D., Spain, S. M., & Hannah, S. T.
Reviewed by: Alexandra Rechlin

Recent research suggests that some positive personality traits (e.g., conscientiousness) are related to leadership outcomes. But what about the “dark side” of personality? In other words, what about subclinical traits (traits that fall between “normal” and what would be considered a personality disorder)?

Harms, Spain, and Hannah (2011) studied subclinical (“dark side”) traits and their effect on leader development in West Point cadets. They found that development did occur, with all twelve leader development dimensions increasing over the three-year time period. Subclinical traits had an effect on the rate of leader development, but the nature of that effect was mixed. Some traits (skeptical, imaginative) were negatively related to leader development, while others (cautious, bold, colorful, dutiful) were positively related to leader development.

These results suggest that we should not see all “dark side” traits at being completely bad; in terms of leader development, some seem to help and others seem to hurt. In addition, this study provides further evidence that leadership develops over a long period of time, and personality explains much of that change. Therefore, personality assessments that go beyond the Big Five (openness, conscientiousness, extraversion, agreeableness, neuroticism) would be useful as part of leadership development programs.

Harms, P. D., Spain, S. M., & Hannah, S. T. (2011). Leader development and the dark side of personality. The Leadership Quarterly, 22, 495-509. doi: 10.1016/j.leaqua.2011.04.007

human resource management,organizational industrial psychology, organizational management

Why LMX Works: Some Reasons Why High-Quality Relationships Are So Important

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Topic: Citizenship Behavior, Leadership
Publication: Personnel Psychology (Autumn 2011)
Article: How Leader–Member Exchange Influences Effective Work Behaviors: Social Exchange and Internal–External Efficacy Perspectives
Authors: Walumbwa, F. O., Cropanzano, R., & Goldman, B. M.
Reviewed By: Thaddeus Rada

Leader-member exchange (LMX) theory has been an influential leadership theory for many years. The central tenet of LMX theory is that managers and other individuals in leadership positions are likely to form relationships with their subordinates that differ in quality. A leader’s relationship with some subordinates may be close, personal, and open, while their relationship with other subordinates may be more formal, with less communication about non-work issues. LMX theory posits that these relational differences will lead to a variety of outcomes, including differences in performance and satisfaction among employees.

Although LMX theory has been influential for some time, there are still unanswered questions about the theory, such as what moderators or mediators might play a role in the LMX-performance relationship. Addressing this knowledge gap, a recent study by Fred Walumbwa and colleagues examined the potential impact of three mediators on the link between LMX and effective employee performance: commitment to the supervisor, self-efficacy, and means efficacy. Among their hypotheses, the authors believed that self- and means efficacy would be positively related to job performance, and that LMX would be directly related to both types of efficacy. The authors tested their hypotheses with a large sample of nurses. Results were supportive of the authors’ hypotheses, including the full mediation of the LMX-job performance relationship by supervisor commitment, self-efficacy, and means efficacy.

From a practical perspective, this study suggests that high LMX is associated with three important conditions – supervisor commitment, self-efficacy, and means efficacy — that contribute to high job performance by subordinates. It is also worth noting that the authors of the current article found that higher supervisor commitment was associated with higher levels of organizational citizenship behaviors (OCBs), directed towards both the individual and the organization. As such, it appears that organizations have much to gain by encouraging (and facilitating) managers, supervisors, and other leaders to have positive relationships with their subordinates.

Walumbwa, F. O., Cropanzano, R., & Goldman, B. M. (2011). How leader-member exchange influences effective work behaviors: Social exchange and internal-external efficacy perspectives. Personnel Psychology, 64, 739-770.

human resource management,organizational industrial psychology, organizational management

How Leaders Sharing Organizational Values Boosts Team Performance

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Topic: Leadership, Teams, I/o Psychology
Publication: Academy of Management Journal
Article: Person-Organization Value Congruence: How Transformational Leaders
Influence Work Group Effectiveness
Authors: Hoffman, B.J., Bynum, B.H., Piccolo, R.F., & Sutton, A.W.
Reviewer: Neil Morelli

Why is it that some leaders or managers are adept at “rallying the troops” while some seem to be ignored? The former may be a transformational leader. Transformational leaders are those that inspire their subordinates by instilling a sense of mission and purpose to attain long-term goals. These types of leaders have already been shown to positively influence work group effectiveness, but the question of “why” still remains. In an attempt to understand some of the underlying factors governing this relationship, Hoffman and colleagues tested if person-organization and person-leader value congruence at the group level mediates the relationship between transformational leadership and group effectiveness.

Why value congruence? Transformational leaders are said to be good at showing how organizational or group goals are congruent with individually held values, thus motivating followers to strive toward the achievement of those goals. Specifically, Hoffman et al. found that person-organization value congruence at the group-level, but not person-leader value congruence, mediated the relationship between transformational leadership and group effectiveness.

The authors suggested that because organizational values appear to be more important than leader values when offered side by side, organizations should make sure leaders buy into organizational goals and values for groups to be operating at their best. They also noted that managers and leaders who can communicate how the goals of the group and the goals of the organization are congruent will be able to improve the group’s capacity to attain both—important lessons to consider for any leader.

Hoffman, B.J., Bynum, B.H., Piccolo, R.F., & Sutton, A.W. (2011). Person-organization value congruence: How transformational leaders influence work group effectiveness. Academy of Management Journal, 54(4), 779-796.

human resource management,organizational industrial psychology, organizational development

They Make How Much!? Why History Matters with CEO Pay

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Topic: Leadership, Compensation
Publication: Academy of Management Journal
Article: Do CEOs Encounter Within-Tenure Settling Up? A Multiperiod Perspective on Executive Pay and Dismissal
Authors: Wowak, A.J., Hambrick, D.C., & Henderson, A.D.
Reviewer: Neil Morelli

Past studies have found a significant yet modest relationship between CEO pay and performance. In an effort to challenge this finding, Wowak, Hambrick, and Henderson tested whether a multiperiod “settling up” view should be taken when defining the pay to performance relationship, rather than the more common cross-sectional snapshot. According to the authors, settling up is when executive boards dynamically adjust current pay according to historical performance.

Wowak et al. specifically examined firm performance (based on total shareholder return and return on equity), annual pay revision, and a binary dismissal variable for 590 CEOs who had served at least four years and led companies valued at least $10 million. Their analyses showed that boards do consider past track records of performance and pay history in determining current pay, as opposed to only considering current performance. Also, the level of over(under)payment preceding a given year was negatively related to the current year’s pay revision.

In response to researchers, and occasionally the public, scratching their collective heads about the functions of CEO pay, Wowak et al. offer a new perspective. Apparently, it isn’t just the present, but also the past that helps determine the rewards and punishments of CEO performance.

Wowak, A.J., Hambrick, D.C., & Henderson, A.D. (2011). Do CEOs encounter within- tenure settling up? A multiperiod perspective on executive pay and dismissal. Academy of Management Journal, 54(4), 719-739.

Trust in the leader is important for team performance

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Topic: Leadership, Teams
Publication: Journal of Applied Psychology (JUL 2011)
Article: Cognition-based and affect-based trust as mediators of leader behavior influences on team performance
Authors: Schaubroeck, J., Lam, S. S. K., & Peng, A. C.
Reviewed by: Alexandra Rechlin

Little research has explored the role that trust in the leader plays on team performance. This study examined that relationship and provided support for a model of affect-based and cognition-based trust in the leader mediating (linking) the relationship between leader behavior patterns and team performance.

Two types of trust in the leader were explored in this study: cognition-based trust and affect-based trust. Cognition-based trust is based on one’s perceptions of the leader’s competence, while affect-based trust is based on one’s feelings for the leader (e.g., a sense of empathy or concern from the leader). In this study, cognition-based trust was positively related to team performance through team potency (a team’s belief in its capability). Affect-based trust was positively related to team performance through psychological safety (a team’s belief that it is safe to take interpersonal risks, like suggesting unpopular ideas).

Transformational leadership is a behavior pattern in which the leader conveys a vision and strategic goals to inspire followers. Servant leadership emphasizes the followers, focusing on their welfare and supporting them. The authors found that transformational leadership was positively related to team potency through cognition-based trust. Servant leadership was positively related to team psychological safety through affect-based trust. In addition, both servant leadership and transformational leadership were positively and independently related to team performance.

To put this all in simpler terms, trust in the leader is important for team performance. Transformational leadership leads to cognition-based trust in the leader, which in turn leads to the team’s belief in its own capabilities, and that belief subsequently leads to increased team performance. Servant leadership leads to affect-based trust, which leads to an increase in the team’s sense of psychological safety, which then leads to increased team performance.

So what does all this mean for leaders? Leaders should engage in both transformational and servant leadership. They are not mutually exclusive, and they lead to different types of trust, which subsequently (and separately) lead to better team performance. Leaders may also want to adapt their behavior patterns depending on whether cognitive- or affect-based trust is more important for their situation.

Schaubroeck, J., Lam, S. S. K., & Peng, A. C. (2011). Cognition-based and affect-based trust as mediators of leader behavior influences on team performance. Journal of Applied Psychology, 96, 863-871. doi: 10.1037/a0022625