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This theory consists of six axioms and twenty-seven propositions that relate leader behavior, leader motives, and situational variables to leader effectiveness.
The Parsimonious Meta–Proposition of Value Based Leadership
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.
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The value based theory of leadership integrates the precursor theories discussed above with a number of assertions advanced in several psychological theories of motivation and behavior. Following is a brief review of the psychological theories that are integrated into the Value Based Leadership Theory.
McClelland's Theories of Non-conscious Motivation
According to this theory, the motivational aspects of human beings can be understood in terms of four non-conscious motives in various combinations (McClelland, 1985). These motives are the achievement, power, affiliation, and social responsibility motives. McClelland has developed a theory of entrepreneural effectiveness based on the role of achievement motivation, and a more general theory of leader effectiveness consisting of theoretical assertions concerning the optimum combination of the above four motives for effective leadership. This theory is entitled the Leader Motive Profile Theory (LMP). In the following sections we discuss the four motives discussed by McClelland and the LMP theory.
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| There is extensive empirical evidence with respect to the effects of behaviors specified by value based leadership theory. Charismatic, visionary, and transformational theories of leadership are precursors of the leader behaviors specified by value based leadership theory. Tests of these theories have been based on various operationalizations that qualify as measures of value based leadership including interviews (Howell & Higgins, 1990), laboratory experimentation (Howell & Frost, 1989; Kirkpatrick & Locke, 1996), questionnaires (Lowe, Kroeck & Sivasubramaniam, 1995), and quantified archival data (House, Spangler & Woycke, 1991). In all of these tests, the leader behavior measured consists of articulating an organizational vision and behaving in ways that reinforce the values inherent in the vision, thus qualifying as indirect evidence relevant to the effects of value based leadership. Space limitations prevent a detailed review of the evidence. However, Bass and Avolio (1993), House and Shamir (1993), Lowe et al,. (1995), and Yukl (1994), present overviews of these studies. With surprising consistency these empirical studies have demonstrated consistently that value based leader behavior predicts unusual levels of leader effectiveness directed toward enhancing organizational performance.
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| In this section, an overview of what Value Based leadership is and how it works is presented. There is both theory and empirical evidence to suggest that value based leadership has a substantial effect on organizational performance. Waldman and his associates reported two studies of value based leader behavior as an antecedent to organizational profitability (Waldman, Ramirez & House, 1996; Waldman, Atwater & House, 1996). In these studies value based leadership accounted for between fifteen and twenty five percent of firm profitability over the three years following the time at which value based leadership was assessed. The design of these studies controlled for executive tenure, firm size, environmental turbulence, and prior firm profitability.
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| The theory is intended to integrate the newer theories and the empirical evidence alluded to above. Value based leadership is defined as a relationship between an individual (leader) and one or more followers based on shared strongly internalized ideological values espoused by the leader and strong follwower identification with these values. Ideological values are values concerning what is morally right and wrong. Such values are expressed in terms of personal moral responsibility, altruism, making significant social contributions to others, concern for honesty, fairness, and meeting obligations to others such as followers, customers, or organizational stakeholders. Value based leadership is asserted to result in: a) exceptionally strong identification of followers with the leader, the collective vision espoused by the leader, and the collective; b) internalized commitment to the vision of the leader and to the collective; c) arousal of follower motives that are relevant to the accomplishment of the collective vision; and d) follower willingness to make substantial self sacrifices and extend effort above and beyond the call of duty.
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During the period between the mid-seventies and the present time a number of theories have been introduced into the leadership literature. These new theories and the empirical research findings constitute a paradigm shift in the study of leadership. The theories to which I refer are the 1976 Theory of Charismatic Leadership (House, 1977), the Attributional Theory of Charisma (Conger & Kanungo, 1987), and the Transformational Theory (Burns, 1978; Bass, 1985), and Visionary Theories of Leadership (Bennis & Nanus, 1985; Sashkin, 1988; Kousnes & Posner, 1987).
I believe these theories are all of a common genre. They attempt to explain how leaders are able to lead organizations to attain outstanding accomplishments such as the founding and growing of successful entrepreneurial firms, corporate turnarounds in the face of overwhelming competition, military victories in the face of superior forces, leadership of successful social movements and movements for independence from colonial rule or political tyranny. They also attempt to explain how certain leaders are able to achieve extraordinary levels of follower motivation, admiration, respect, trust, commitment, dedication, loyalty, and performance.
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| Six national flags have flown over Texas during its colorful history. The first was Spain's banner, from 1519 to 1685. In 1685 the French explorer La Salle raised the French flag over a short-lived coastal colony. In 1691 Texas again came under the Spanish flag, which was replaced by the banner of Mexico in 1821. From 1836 to 1845 the Lone Star banner flew over the Republic of Texas. The Stars and Stripes became the official flag in 1845, but during the American Civil War, from 1861 to 1865, it was replaced by the Confederate flag.
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