The cognitive resource theory states the influence of the leader's resources on his or her reaction to stress. The cognitive resources of a leader are experience, intelligence, competence, and task-relevant knowledge. Stress is common in resource managing situations, and this cognitive theory emphasizes how intelligence and experience are each best under different stress situations. This theory is the reconceptualization of the Fiedler model.
In the early 1990s, the original model of Fiedler was re-conceptualized by Fiedler and his associate Joe Garcia, as Cognitive Resource Theory. In this model, the focus has been laid on the role of stress as a form of situational un-favorableness and how a leader’s intelligence and experience influence her/his reaction to stress.
Cognition is the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses. Good examples of cognition are learning and our ability to reason through logic. Cognitive processes use existing knowledge and generate new knowledge. Cognitive processes are analyzed from different perspectives within different contexts like psychiatry, psychology, education, philosophy, and computer science.
The Contingency Model developed by Fiedler was criticized for its lack of flexibility and also over the accuracy of the LPC scale. Fiedler then went on to develop the Cognitive Resource Theory (CRT) which takes into account the personality of the leader, degree of situational stress, and group-leader relations.
The assumption behind this theory is that stress impacts the ability to make decisions. It is the enemy of rationality and a leader cannot think in a logical and analytical manner if she/he is under a high level of stress. According to this proposition, the importance of a leader’s intelligence and experience to effectiveness differs under low and high-stress situations.
Fiedler and Gracia state that a leader’s intellectual ability correlates positively with performance under low stress but negatively under high stress. And conversely, a leader’s experience correlates negatively with performance under low stress but positively under high stress.
Thus, according to Fiedler and Gracia, the level of stress in a situation, determines whether an individual’s intelligence or experience will contribute to leadership performance.
The Cognitive Resource theory predicts that the leader's abilities and intelligence can aid organizational success only when leaders adopt a directive leadership style, the situation is stress-free, the group members are supportive and the task requires high intellect. These attributes are discussed below:
When a leader is better in cognitive abilities like intelligence, planning, and decision-making, he must follow a directive approach to improve the overall performance of the team. He needs to communicate to the group what to do, to ensure his plans and decisions are implemented, hence improving the overall performance of the group.
When the group and the people on the group are better than the leader in cognitive abilities, then the leader should choose a non-directive approach. He should seek ideas from the group and identify the best approach/idea and move ahead with the same.
A leader's cognitive ability contributes to the performance of the team only when the leader uses the directive leadership style.
Stress has a direct co-relation with intelligence and decision quality.
When there is a low stress, then intelligence is fully functional and makes an optimal contribution.
When there is high stress, natural intelligence does not make any difference, but may also have a negative effect.
A leader's abilities will contribute to group performance only when group members are supportive of the leader and his goals. In such a situation leader's directions can be easily followed and implemented.
The intellectual abilities and intelligence of the leader can only be utilized efficiently in difficult, cognitively demanding tasks.
The theory proposes the style of leadership required depending on three variables – the degree of stress, situational control, and task structure.
Leaders should be trained on stress management so that a leader's intellect can be most effectively utilized and also to train leaders to take a directive approach when their knowledge will benefit the group but a less directive approach when group member abilities will contribute to performance.
Based on this theory, for a given situation, depending on the level of the stress, leaders can decide on whether to rely on intelligence or on experience. For low-stress situations, one should rely on intelligence; however, for high-stress situations, one should rely on experience.
In high-stress situations, leaders who are more experienced will produce more quality results. In high-stress situations, rational solutions are generally not available and hence intelligence will not be able to support the decision-making process, whereas previous experience can allow the leader to react.
The cognitive resources of a leader refer to their experience, intelligence, competence, and task-relevant knowledge. A leader's knowledge can contribute to performance if it is efficiently communicated, hence requiring a directive leader and also a compliant group that is willing to undertake the commands of the leader.
Theory Z also called the "Japanese Management" style is a leadership theory of human motivation focused on organizational behavior, communication, and development. It assumes that employees want to enter into long term partnerships with their employers and peers. Offering stable jobs with an associated focus on the well-being of employees results in increased employee loyalty to the company.
Burns Transformational Leadership Theory
Transformational leadership theory has been defined by James MacGregor Burns as a process where both leaders and followers mutually raise one another to higher levels of morality and motivation. The concept of transforming leader works with teams to garner trust, respect, and admiration while reaching to higher moral positions. The transformational theory of leadership was developed while studying political leaders and how they use charismatic methods to attract people to the values.
In this study of power, Raven identified five bases of power as coercive, reward, legitimate, referent, and expert. The 5 Types of Power can help you decide when it is appropriate to use a particular type of power in important situations. Leadership involves authority and it is very important for leaders to understand what type of power they're using.
Normative leadership theories are built on moral principles and tell leaders how they ought to act. Victor Vroom formulated the normative model of leadership that specifically address leader behavior explicitly built on moral principles or norms. Normative leadership theories tell leaders how they should act to raise the moral performance inside the working group and manage their different responsibilities.
Lewin’s Change Management Model
Lewin's change management model is a framework for managing organizational change. Lewin's methodology of different Leadership Styles recognizes three distinct stages of change - creating the perception; moving toward the new desired level of behavior and, ensuring new behavior as the norm.
Five Factors Model (FFM) also known as Five-Factor Personality Model is based on five broad personality traits which are extraversion, neuroticism, openness to experience, agreeableness, and conscientiousness represented by acronym OCEAN, these traits are often referred to as the “Big Five”.
Michigan Leadership Studies led to behavioral Leadership Theory as a result of a leadership study conducted at the University of Michigan. Michigan studies identified three important behaviors of leadership called task-oriented behavior, relationship-oriented behavior, and participative leadership. Two leadership styles associated with studies are employee orientation and production orientation.
Situational Theories of Leadership
The situational theories of leadership assume that the most effective style of leadership depends from situation to situation. Situational leadership is a leadership style in which the leader must adjust to match the development needs of the followers. They must adapt varying behaviors to strike the right balance between task & relationship based on different levels of maturity of followers and also as followers develop and cultivate their skills.
The psychodynamic approach to leadership has its roots in the work done by Sigmund Freud. These involved psychological theories of personality development and explaining leadership using psychoanalytic concepts. It tries to define a person is in terms of personality traits. Personality structured into three parts (i.e., tripartite) - the id, ego, and superego.
Hawthorne Studies - Leadership
The Hawthorne studies were conducted on workers at the Hawthorne plant of the Western Electric Company by Elton Mayo and Fritz Roethlisberger in the 1920s. This study established the behavioral change that happened due to an awareness of being observed, resulting in active compliance with the supposed wishes of researchers, because of special attention received, or positive response to the stimulus being introduced.
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