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based on equity theory of motivation.

Propositions 13 through 21 are based on the 1996 version of Path Goal Theory

of leadership (House, 1996).

22. Leaders arouse motives of followers by enacting specific motive arousal

behaviors relevant to each motive. For example, defining tasks and goals as

challenging arouses the achievement motive; invoking the image of a

threatening enemy, describing combative or highly competitive situations or

describing the exercise of power arouses the power motive; making acceptance

of the leader contingent on mutural acceptance of followers, or stressing the

importance of collaborative behavior arouses the affiliative motive.

23. Leaders who engage in selective behaviors that arouse motives

specifically relevant to the accomplishment of the collective vision will

have positive effects on followers' value based motive syndrome described in

Proposition 2.

24. The more leaders engage in the value based leader behavior syndrome the

more their followers will emulate (a) the values, preferences and

expectations of the leader, (b) the emotional responses of the leader to

work-related stimuli, and (c) the attitudes of the leader toward work and the

organization.

Propositions 22 through 24 are slight revisions of propositions advanced in

the 1976 Theory of Charismatic leadership (House, 1977).

25. The use of strong extrinsic material rewards contingent on performance

will conflict with appeals to ideological values and will thus undermine the

effects of the value based leader behavior syndrome. This proposition is

based on dissonance theory (Festinger, 1980) and supported by the findings of

Korman (1970), and Dubinsky and Spangler (1995) described above.

Propositions Concerning Social Context

26. Two necessary conditions for leaders to have the effects specified in

proposition two are that leaders have the opportunity to communicate the

collective vision to potential followers and that the role of followers be

definable in ideological terms that appeal to them. This is a modification

of one of the propositions originally advanced by House (1977).

27. The emergence and effectiveness of value based leaders will be

facilitated to the extent to which a) performance goals cannot be easily

specified and measured, b) extrinsic rewards cannot be made clearly

contingent on individual performance, c) there are few situational cues,

constraints and reinforcers to guide behavior and provide incentives for

specific performance, and d) exceptional effort, behavior and sacrifices are

required of both the leaders and followers. This proposition is based on the

earlier discussion of strength of situations and dissonance theory and is a

modest modification of one of the propositions originally advanced by Shamir

et al. (1993).

The hypotheses were tested within the context of a latent structure casual

model, using Partial Least Squares Analysis (PLS). This modelling procedure

requires that substantive hypotheses be modelled in the form of paths

connecting the hypothesized variables. The variables are latent constructs

composed of scores on manifest indicators. The The slopes of these

relationships are presented in Figure 3. This finding supports the

competitive hypothesis 5a which states that LMP will have greater effects in

non-entrepreneurial firms than in entrepreneurial firms, and will be

discussed below.

IMPLICATIONS

In this section we first discuss the implications of the findings with

respect to the value based leadership. Next we discuss the implications of

the findings for each of the five theories that were integrated in the models

tested. We then discuss the more general implications of the study for the

discipline of Organizational Behavior.

Value Based Leadership

Thomas (1988), House et al. (1991), and by Waldman, Ramirez and House (1996)

demonstrate longitudinally, and with adequate controls for spurious

relationships, that leaders have substantial effects on the performance of

the organizations they manage. However, there have been no studies, other

than the U.S. presidential study (House et al., 1991), that investigate the

leader motives and behavior that lead to such leader effects. Thus there has

been a "black box" concerning how leader processes influence overall

organizational performance that remains to be explained.

Collectively, the findings of the present study help to understand the

phenomena in the "black box." More specifically, the findings show, in some

detail, important relationships between chief executives' motives and

behavior and subordinates' motivation and commitment to their organization.

Having shown how the components function, it is now possible to test

linkages between leader behavior, subordinate responses, and organizational

effectiveness using longitudinal quasi experimental designs.

Implications for Specific Theories

In this section we discuss the implications of the study findings for each of

the theories that are integrated to form the Value Based Theory of

Leadership.

Achievement Motivation Theory

Achievement motivation has a more positive effect on CEMS and all leader

behaviors in entrepreneurial firms than in non-entrepreneurial firms. This

finding constitutes yet another confirmation of achievement motivation theory

concerning the specific conditions under which achievement motivation is

predicted to result in high performance.

Moral Responsibility Theory

The bivariate relationships between the moral responsibility disposition and

value based leader behavior, leader fairness and CEMS, and the moderating

effect of responsibility on the relationships between the power motive, and

CEMS, leader charisma, and support/reward behavior all provide support for

Moral Responsibility Theory. Moral responsibility motivation is clearly an

important disposition that deserves further investigation and attention.

Leader Motive Profile Theory

The positive relationships between LMP and executive value based leader

behavior, support/recognition behavior, and directiveness provide support for

LMP Theory. These two relationships are consistent with the interpretation

that because high LMP leaders have low affiliative motivation they enact

social influence in an impersonal and more proactive and assertive manner

than low LMP leaders.

The findings are consistent with the propositions that LMP affects leader

behavior, and leader behavior in turn has a positive effect on CEMS. These

findings suggest a re-specification of the boundary conditions for the role

of LMP in organizational functioning. Contrary to the initially specified

boundary conditions, LMP has negligible effects on leader behavior and CEMS

in non- entrepreneurial firms and positive effects in entrepreneurial firms.

These findings imply that LMP has its' major impact on organizational

outcomes through its' influence on leader behavior under weak psychological

conditions.

Path Goal Theory

As predicted by the Path-Goal Theory of Leadership (House, 1996), leader

contingent

recognition and supportive behaviors are predictive of CEMS, and leader

directiveness is more strongly negatively related to CEMS in entrepreneurial

firms. Thus Path-Goal theory is provided additional support in the present

study.

CONCLUSION

The major conclusions that can be drawn from the above findings and discussion

are: 1) the value based theory of leadership successfully integrates five

prominent theories of leadership (transformational, charismatic, visionary,

LMP, and path-goal theories) and assertions drawn broadly from established

psychological theories of motivation and behavior; 2) the components of the

value based theory of leadership are rather strongly and quite consistently

supported, although their exact combinations remain to be established; 3) the

psychological theories integrated within the value based theory are largely

supported; 4) the value based theory of leadership, with various kinds of

operationalizations, has rather broad generalizability; 5) the theory

supported by the U.S. presidential study holds for CEOs with respect to effects

of leader behaviors on subordinates' cognitions and affective responses; 6) a

re-specification of the boundary conditions of LMP should be further

investigated; and 7) the motives that are most appropriate for effective

leadership are contingent on the orientation of the collective being led.

Beginning with the 1976 theory of charismatic leadership (House, 1977), a new

leadership paradigm has emerged. This paradigm consists of several theories of

similar genre (House, 1977; Bass, 1985; Conger & Kanungo; 1987; Bennis

& Nanus, 1985; 1987; Sashkin, 1988) and concerns the determinants of

exceptionally effective or outstanding leadership. According to this paradigm,

value based leaders infuse organizations and work with ideological values which

are intrinsically and powerfully motivational. Value oriented motivation

is stronger, more pervasive, and more endurable than pragmatic oriented

motivation. The theories of the new paradigm are now integrated and

formalized as the Value Based Theory of Leadership. Hopefully, this theory and

the supporting research will stimulate further leadership research and further

development of leadership and organizational behavior theory. As the final

accorsd of my project I am going to say a few words about the Russian research

in this field. Russian Project is a part of annual International Project GLOBE.

Interviews have been taken among the CEO’s of Russian Entrepreneurial and

Non-entrepreneurial Firms. It would be very interesting to mention the fact

that the results were surprising and clearly showed the profile of a Russian

Leader. The participants did not know each other and at the same time answered

very alike. Russian Leaders have strong potential and all chances to achieve

the desired goals.Strong charracters, clear vision of the future and optimistic

approach are the main strong sides of the profile. Russian Leaders work a lot

and enjoy every moment of life. They have time for their family. None of the

sides suffer. Russia has a strong potential for Leadership.

Appendix 1

Table 1

Executive Interview Questions

1. Would you briefly describe your career to date, beginning with your

education and then when you first entered a management position?

2. When you assumed your present position was there a mandate for what you

were expected to accomplish, a number of problems you were expected or

desired to solve, goals you expected or desired to achieve, or a vision of

your own or someone elses to be accomplished?

3. What were the major strengths of your organization that help you

accomplish what you wanted to accomplish when taking this position?

4. What were the major deficiencies in the organization?

4. What were the major barriers to accomplishment?

5. What were your major strengths?

6. Were there any personal weaknesses you needed to overcome or were there

any .personal deficiencies such as lack of skills, that that you needed to

improve upon?

7. Please describe the strategy you used, or the major activities you

conducted, to accomplish the objectives you desired to accomplish.

8. Please describe your philosophy of management (this is usually already

implicitly described in the answers to the above questions).

9. Are there any other considerations we need to know about in order to

understand your role in your current position?

10. Executives often need to devote a large amount of time to ltheir work.

How do you reconcile the potential time conflicts between your work demands

and family demands

Table 2

VALUE BASED LEADERSHIP CONSTRUCT

This construct consists of seven subscales, each of which serves as a

manifest indicator. These subscales are Vision, Performance Expectations and

Improvement, Follower Confidence and Challenge, Intellectual Stimulation,

Role Modeling, Integrity, and Self Confidence.

VISION

Clearly articulates his/her vision of the future·
Paints an exciting picture of the future of our organization
Communicates an exciting vision of the future of the organization
Is optimistic about the future of this organization
Has a clear understanding of where we are going·
Has a clear sense of where he/she wants our unit to be in five years·
Has a hard time exciting others with a dream of the future
Has no idea where our organization is going*

PERFORMANCE EXPECTATIONS-IMPROVEMENT EMPHASIS (for the subordinates)

Expects a lot from us·
Expects less from me than other superiors with whom I have worked (-)
Expects me to give 110% all f the time
Insists on only the best performance·
Does not expect much of me in terms of performance (-)
Challenges us to be innovative in our approach to work assignments
Encourages us to look for better ways of doing
Tells me how to do my work*
Urges me to be self critical if my performance is not up to par
Expects me to set goals for myself·

FOLLOWER CONFIDENCE AND CHALLENGE (sub)

Shows confidence in my ability to contribute to the goals of this organization
Demonstrates total confidence in me
Allows me to take a strong hand in setting my own performance goals·
Allows me to set my own goals
Encourages me to solve problems on my own ·
When I have a problem he/she asks me to find a solution
Challenges me to set high goals for myself·

INTELLECTUAL STIMULATION,

Challenges me to think about old problems in new ways·
Has ideas that have forced me to rethink some things that I have never questioned before·
Asks question that prompt me to think about the way I do things·
Has ideas that have challenged me to re-examine some of my basic assumptions about my work·

ROLE MODELING

Sets a good example·
Leads by "doing" rather than simply by "telling"·
Provides a good model for me to follow·

INTEGRITY

Follows a definite moral code·
Makes sure that his/her actions are always ethical·
Will not sacrifice or compromise his/her moral standards·
Can be trusted to serve the interests of his/her subordinates rather than him/herself
Is pragmatic and adjusts his/her ethical standard to fit the situation (-)
Does not behave in a manner that is consistent with the values he/she expresses (-)·
Does not follow the rule "practice what you preach" (-)

SELF CONFIDENCE

Has strong convictions in the correctness of our competitive strategy·
Has strong convictions in the correctness of his or her actions·
Shows a high degree of self confidence·
Views obstacles as challenges rather than threats·
Rises to meet difficult goals·
Encourages people to see changing environments as situations full of opportunities·

SUPPORT - REWARD

This construct consists of the Leader Consideration and Contingent Reward

subscales.

CONSIDERATION

Looks out for my personal welfare·
Considers my personal feelings before acting
Sees that the interests of subordinates are given due consideration
Behaves in a manner which is thoughtful of my personal needs·
Acts without considering my feelings*·
·

CONTINGENT RECOGNITION AND APPROVAL

Gives me positive feedback when I perform well·
Informs others in the organization when I do outstanding work·
Gives me special recognition when my work performance is especially good·
Acknowledges improvements in the quality of my work·
Encourages me to feel positive about myself if I do an assignment especially well
Commends me when I do a better than average job
Personally compliment me when I do outstanding work·
Makes my compensation contingent on my performance
Rarely praises me when I do well (-)
Frequently does not acknowledge my good performance (-)
Would indicate disapproval if I performed at a low level
Shows his or her displeasure when my work is below acceptable standards
Points it out to me when my work is not up to par·
Is just as likely to praise me when I do poorly as when I do well*
Will praise me even when I don't deserve it*

DIRECTION

Provides direction in regard to my job·
Sets goals for my performance·
Gives me instructions about how to do my job
Tells me how to do my work
Establishes my goals for me·
Takes a strong hand in establishing my goals

FAIRNESS IN EVALUATION (inverted)

Holds me accountable for work I have no control over
Often holds me responsible for things that are not my fault

COMMITMENT, MOTIVATION, AND PERCEIVED TEAM EFFECTIVENESS

This construct consists of three subscales: Motive Arousal; Commitment,

Satisfaction, and Motivation; Perceived Top Management Team Effectiveness.

MOTIVE AROUSAL,

My CEO (or COE)
Makes me enthusiastic about my assignments·
Arouses in me motivation to work harder and better·
Motivates me to do more than I originally expected I would do
Inspires me to get a lot more done than I could have if he or she were not
Inspires me to my highest level of performance·

COMMITMENT, SATISFACTION, AND MOTIVATION,

I agree with to my superior's vision of this organization.
I am very satisfied with the CEO
I expect to be with this organization in 1996
I expect this organization to have an excellent future
I am willing to make serious personal sacrifices to contribute to the success of this organization
I contribute to this organization 100% of my ability
I perform above and beyond the call of duty
My work performance and efforts are above and beyond that which is required
The CEO (or COE) makes me feel good to be around him/her
I find the CEOs vision of the future to be confusing*

TEAM EFFECTIVENESS

My CEO (or COE) gets people to place the interests of the organization ahead of their own interests
People at my level work well together·
The top management of his company works very effectively as a team
My work is made difficult because others will not provide the cooperation and support they should provide*·

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