Interrelationships among the Levels of Analysis

Exhibit 1.3 illustrates the interrelationships among the levels of analysis of leadership
theory. Note that the individual is placed at the bottom of the triangle because group
and organizational performance are based on individual performance. It has been
said that an organization is the sum of all of its individual transactions. Depending
on the size of the group and organization you work for, your individual performance
may influence the performance of the group and organization positively or negatively.
If individual performance is low throughout the organization, the triangle will
fall because it will not have a firm foundation, or performance will be low.
Learning
Outcome 3
EXH I B IT Interrelationships among the Levels of Analysis of Leadership Theory 1.3
Individual
Organizational
Group
The group-level approach provides a better understanding of leadership effectiveness
than the individual, but groups function in a larger social system; and group
effectiveness cannot be understood if the focus of research is limited to a groups
internal process level of analysis. Thus, the group part of the triangle supports the
organizational side. If the groups are not effective, the triangle will fall or organizational
performance will be low.
Both group and organizational performance also affect the performance of the
individual. If both the group members and the group are highly motivated and productive
(or not productive), chances are the individual will be productive (or not) as well.
Success tends to be contagious. Working for a winning organization, like Apple, tends
to motivate individuals to perform at their best to stay on top. However, an organization
and its performance are more than the simple sum of its individuals and groups.
Leadership Theory Paradigms
The first thing we need to do is define the important concepts of this section.
A leadership theory is an explanation of some aspect of leadership; theories have practical
value because they are used to better understand, predict, and control successful leadership.
So, the main purpose of a theory is to inform practice.68 It has been said that there
is nothing as practical as a good theory.69 There are four major classifications
of leadership theory,70 also called research approaches, used to explain leadership.