The Value Based Leadership Theory

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Value based leadership theory is based on the meta–proposition that non-conscious motives and motivation based on strongly internalized values is stronger, more pervasive, and more enduring than motivation based on instrumental calculations of anticipated rewards or motivation based on threat and avoidance of punishment. The axioms and propositions that follow are derived from and can all be explained in terms of this parsimonious meta-proposition.

The Value Based Leader Behavior Syndrome

Behaviors that characterize value based leadership include a) articulation of a challenging vision of a better future to which followers are claimed to have a moral right; b) unusual leader determination, persistence, and self-sacrifice in the interest of the vision and the values inherent in the vision; c) communication of high performance expectations of followers and confidence in their ability to contribute to the collective; d) display of self-confidence, confidence in followers, and confidence in the attainment of the vision; e) display of integrity; f) expressions of concern for the interests of followers and the collective; g) positive evaluation of followers and the collective; h) instrumental and symbolic behaviors that emphasize and reinforce the values inherent in the collective vision; i) role modelling behaviors that set a personal example of the values inherent in the collective vision; j) frame-alignment behaviors--behaviors intended to align followers' attitudes, schemata, and frames with the values of the collective vision; and, k) behaviors that arouse follower motives relevant to the pursuit of the vision. We refer to these behaviors collectively as the value based leader behavior syndrome.

This specification of value based leader behaviors integrates the behaviors specified in prior extensions of the 1976 theory of charismatic leadership as well as behaviors specified in other theories of charismatic, transformational and visionary leadership. House and Shamir (1993) provide the rationale for inclusion of the above behaviors in the theoretical leader behavior syndrome.

Axioms

Axioms are statements, the validity of which are taken for granted, either because the enjoy substantial empirical evidence or becuse they cannot be tested. Axioms provide a foundation for more specific statements, such as propositions. The axioms stated here provide the foundation for the selection of leader behaviors from among all of the leader behaviors specified in the various theories described above.

Axioms Concerning Human Motivation
1. Humans tend to be not only pragmatic and goal-oriented, but are also self-expressive. It is assumed that behavior is not only instrumental- calculative, but also expressive of feelings, aesthetic values and self- concepts. We "do" things because of who we "are," because by doing them we establish and affirm an identity for ourselves, at times even when our behavior does not serve our materialistic or pragmatic self-interests.
2. People are motivated to maintain and enhance their generalized self- efficacy and self-worth. Generalized self-efficacy is based on a sense of competence, power, or ability to cope with and control one's environment.
Self-worth is based on a sense of virtue and moral worth and is grounded in norms and values concerning conduct.
3. People are also motivated to retain and increase their sense of self- consistency. Self-consistency refers to correspondence among components of the self-concept at a given time, to continuity of the self-concept over time, and to correspondence between the self-concept and behavior. People derive a sense of "meaning" from continuity between the past, the present and the projected future, and from the correspondence between their behavior and self-concept.
4. Self-concepts are composed of values, perceptions of self-worth, efficacy, and consistency, and also identities. Identities, sometimes referred to as role-identities, link the self-concept to society. Social identities locate the self in socially recognizable categories such as nations, organizations and occupations, thus enabling people to derive meaning from being linked to social collectives.
5. Humans can be strongly motivated by faith. When goals cannot be clearly specified or the subjective probabilities of accomplishment and rewards are not high, people may be motivated by faith because being hopeful in the sense of having faith in a better future is an intrinsically satisfying condition.
6. When individual motives are aroused in the interest of the collective effort, and when individual identify with the values inherent in the collective vision, they will evaluate themselves on the basis of the degree to which they contribute to the collective effort. Under conditions of motive arousal and value identiication individuals experience intrinsic satisfaction from their contribution to the collective effort and intrinsic dissatisfaction from failure to contribute to collective efforts.

These axioms incorporate the extensions of the 1976 theory of charismatic leadership offered by Shamir, House and Arthur (1993), and
House and Shamir (1995) and provide the integrative framework for the Value
Based Theory of Leadership.

PROPOSITIONS

The theory is expressed in the form of twenty-seven propositions which assert specific ways in which leader motives and behaviors, in conjunction with situational variables, affect follower motivation and performance and organizational performance. These propositions are based on the leadership and psychological theories reviewed above and reflect the extensions of the
1976 Theory of Charismatic Leadership contributed by House et al. (1991),
Shamir et al. (1993), House and Shamir (1993), and Waldman, Ramirez and
House (1996).

Propositions Concerning Leader Behavior and Its Effects

1. The motivational effects of the behaviors of the value based leader behavior syndrome described above will be heightened follower recognition of shared values between leaders and followers, heightened arousal of follower motives, heightened follower self-confidence, generalized self-efficacy and self-worth, strong follower self-engagement in the pursuit of the collective vision and in contributing to the collective, and strong follower identification with the collective and the collective vision. We refer to these psychological reactions of followers as the value based motive syndrome .
2. The behavioral effects of the value based motive syndrome will be heightened commitment to the collective as manifested by follower willingness to exert effort above and beyond normal position or role requirements, follower self-sacrifice in the interest of the vision and the collective, and increased collective social cohesion and organizational collaboration. We refer to these effects as the value based follower commitment syndrome. While the value based motive syndrome described in proposition one is not directly observable, the behaviors of the value based follower commitment syndrome are.

Propositions Concerning Leader Attributes

3. Self-confidence and a strong conviction in the moral correctness of one's beliefs will be predictive of proactive leadership. This proposition is a slight modification of proposition three of the 1976 Theory of
Charismatic Leadership. This proposition has been supported by Smith
(1982), House et al. (1991), and Howell and Higgins (1991).
4. Strong leader concern for the morally responsible exercise of power will be predictive of constructive, collectively oriented exercise of social influence by leaders and predictive of the value based motive and follower commitment syndromes specified in propositions 1 and 2 above.
5. Power motivation coupled with a strong concern for the morally responsible exercise of power will be predictive of the constructive, collective-oriented exercise of social influence by leaders.
6. Power motivation, unconstrained by a strong concern for the moral exercise of power, will be predictive of impetuously aggressive and self- aggrandizing exercise of social influence.
7. Power motivation, in conjunction with a strong concern for the moral exercise of power, will be predictive of effective leadership when the role demands of leaders require substantial delegation of authority and responsibility and the exercise of social influence.
8. Power motivation, unconstrained by a strong concern for the moral exercise of power, will be predictive of effective leadership when the role demands of leaders require strong individual competitiveness, aggressiveness, manipulative and exploitive behavior, or the exercise of substantial political influence.
9. Affiliative motivation will be predictive of non-assertive leadership, close relationships with a small subgroup of followers, partiality toward this subgroup, and ineffective leadership.
10. The leader motive profile will be predictive of proactive leadership and leader effectiveness when the role demands of leaders require substantial delegation of authority and responsibility and the exercise of social influence.
11. Achievement motivation will be predictive of effective leader performance in entrepreneurial contexts and for small task-oriented groups in which members have direct interaction with the leader.
12. Achievement motivation will be predictive of ineffective leader performance for the leadership of organizations in which the role demands of leaders require substantial delegation of authority and responsibility and the exercise of substantial social influence.

Propositions four through twelve are derived from the motivation theories reviewed earlier.

Propositions Concerning Specific Leader Behaviors
13. Leader behaviors intended to enhance followers cognitive abilities will increase follower and overall organizational performance when such behaviors complement formal organizational practices and the informal social system by providing direction, clarification, feedback, encouragement, support, and motivational incentives to subordinates which are not otherwise provided.
14. When leader behaviors intended to enhance followers cognitive abilities are redundant with formal organizational practices and the informal social system they will be viewed as excessively controlling, will cause follower dissatisfaction, and will be resented and resisted.
15. To be accepted by followers, it is necessary for leaders to be perceived by followers as acting in the interest of the collective and the followers, to be perceived as fair and trustworthy in their interactions with followers, and to be perceived as not self-aggrandizing.
16. Leader support behavior will be predictive of low follower stress, trust in by followers, and follower satisfaction with their relationships with leaders.
17. Leader contingent recognition and approval will be predictive of follower role clarity, follower perceptions of leaders as fair, and heightened follower satisfaction and motivation.
18. Directive leader behavior will result in follower role clarification but will be dysfunctional when followers prefer to exercise independent actions and initiative, are highly involved in their work, and/or perceive themselves as having requisite knowledge and skills for effective task performance.
19. Participative leader behavior will result in follower role clarification and will be functional when followers prefer to exercise independent actions and initiative, are highly involved in their work, and/or when followers perceive themselves as having requisite knowledge and skills for effective task performance.
20. Leader fairness behavior will be predictive of follower acceptance of leaders, and the leader's vision and values.
21. Perceived lack of fairness will result in follower resentment and resistance to the leaders vision and directions. These propositions are 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.

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