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.
