Organisational Behaviour

Module-3

Leadership
Module III
Leadership; Leader v/s manager- Leadership
styles- Concepts and theories Trait,
Behavioral and situational- Transactional and
Transformational Leaderships- Leadership
effectiveness- Power, sources of Power.

Leadership
Leadership is the process of inspiring, encouraging , and
helping

others

to

work

enthusiastically

towards

objectives.

Leadership is the process whereby one individual

influences other group members towards the attainment

of defined group or organisational goals

Leadership Core points

Leadership is a group phenomenon.
Leadership refers to the ability of one individual to influence
others.
Leader possesses a set of qualities which he uses to influence
others.
Behaviour is changed through non-coercive means
Change of behaviour is caused with an objective of achieving
a shared goal.

Distinguishing Leaders and Managers Role.

Carve
organizational
vision

Leaders Role

Formulate
Strategy to
Implement
vision

Implement
Organizational
strategy

Managers Role

Kotters distinction between

managers and leaders
Three basic tasks

Leaders

Managers

Deciding what needs to be

done

Setting a direction

Planning and budgeting

Creating networks and

relationships

Aligning people to work

(emphasis on
communication,
empowerment)

Organising and staffing

Ensuring people do work

Motivating people

Controlling and problem

solving

Leaders Vs Managers
Leader Characteristics
Innovates
Develop
Focuses on people

Inspires trust
Long range perspective
Eye on horizon
Do the right things

Manager Characteristics
Administers
Maintain
Focuses on systems and
structures
Relies on control
Short range view
Eye on bottom line
Do things right

The Evolution of Leadership Theory

Trait Approach
Assumptions
Leader possesses a set of traits which make them
distinct from followers.
Some traits are particularly suited to leadership.
People who make good leaders have the right (or
sufficient) combination of traits.
Traits were studied to determine what made certain
people great leaders
Belief that people were born with these traits and only the
great people possessed them

Major Leadership Traits

Intelligence
Self-confidence
Determination
Creativity
Integrity
Sociability
Emotional Intelligence (EI):
the ability to monitor and control ones emotions
and behavior in complex social settings.

Leadership
Behavioral Styles Theory
Behavioural theories focuses on leader behaviour while
interacting with subordinates and not on his/ her traits
Theories proposing that specific behaviours differentiate
leaders from non leaders.
Autocratic style/ Authoritarian
Laissez-faire (hands-off style)/ free-rein
Democratic style//Participative style

Classification
depends on how
much authority is
retained by leader
and how much is
delegated
to
subordinate
employee

Types of leadership styles

Autocratic/ Authoritarian Style
The leader takes the decision with out consulting with
other.
No suggestion or initiative from subordinates is
entertained.
The leader forces the subordinate to obey him without
questioning

Laissez-faire / free-rein style

The leader allows the employees to make the decisions.

The leader is still responsible for the decisions that are made.
The leader provides help only when required by the required
by the by the subordinates otherwise he/she does not
interfere in their work.
This is used when employees are able to analyze the situation
and determine what needs to be done and how to do it.

Democratic/participative style
Compromise between autocratic and laissez-fair style

Supervisor acts according to mutual consent and the decisions

reached after consulting the subordinates.
Subordinates are encouraged to make suggestions and take
initiative.
It provides necessary motivation to workers by ensuring their

participation and acceptance of work methods

Leadership style based on Task

versus People Emphasis
Leadership styles is classified based on the relative
concern the leader places on the task to be
performed vs The people performing the task

Leadership style based on

assumptions about people
Depends on what assumptions a leader makes about
his or her followers.
Based on McGregors Theory X and Theory Y
Theory X leaders are autocratic
They distrust people and believe in close supervision and tight
control over the subordinates.

Theory Y leaders are participative

They trust subordinates and allow them to participate in decision
making.

Leader Behaviours and Leadership Styles

Ohio State university Studies

Initiating structure refers to leaders behaviour that defines and

organizes the group tasks, assign tasks to employees and supervises
their activities (positively relates to performance)
Consideration refers to leader behaviour that can be characterized by
friendliness, respect, trust and concern for the welfare of the
employees (positively relates to low absenteeism and grievance)

Behavioural Theories
University of Michigan Studies
University of Michigan distinguished between two
dimensions of leadership
Production
centered
leadership

Set rigid work standards

Organized tasks down to last
detail
Prescribe the methods to be
followed
Closely supervise subordinates
performance

Employee
Centered
leadership

Encourage employee
participation
Inspire respect and trust

Behavioral Styles Theories of

Leadership

The Leadership Grid/ Managerial Grid

Developed by Blake and Mouton
A nine by nine matrix outlining 81 different leadership styles.
Concern for production: the desire to achieve greater
output, cost-effectiveness, and profits.
Concern for people: promoting friendships, helping
coworkers get the job done, and attending to things
that matter to people.

The Managerial Grid

High 9

Concern for people

1,9
Country club management
Care and concern for the people,
with a comfortable and friendly environment
and collegial style. But a low focus on
task may give questionable results.

9,9
Team management
people are committed to task
and leader is committed
to people

5
5,5
Organization Man Management
Doing enough to get things done,
but not pushing the boundaries
of what may be possible.

Low
1

9,1
Authority-Obedience
Strong focus on task, but with little
concern for people . Focus on
efficiency, including the elimination
of people wherever possible.

1,1
Impoverished Management
Minimum effort to get the work done.
A basically lazy approach that avoids as
much work as possible.
1

Low

Concern for production

High

Behavioral Styles Theories of

Leadership
The Leadership Grid Styles
9, 1 style: primary concern for production; people secondary.

1, 9 style: primary concern for people; production secondary.

1, 1 style: minimal concern for production or people
5, 5 style: moderate concern for both production and people to
maintain the status quo.
9, 9 style: high concern for both production and people
(commitment, trust, and teamwork)

Leader member exchange(LMX)

theory
Also know as vertical dyad
model.
A vertical dyad consists of 2
or more persons who are
linked hierarchically.
The
leader
behaviour
depends on who the
subordinate is
The leader forms 2 groups
of followers
In-group
out- group

Leader member exchange(LMX)

theory
In-group
Members tend to be similar
to the leaders, and get
greater
responsibilities,
more attention and more
rewards
More
satisfied,
lower
turnover
and
high
organisational commitment

Out group
Members receives less
attention and fewer
rewards
They are managed by
formal rule and policies

Leadership can be understood better by examining dyads made up of

leader and member

Situational Approach
Developed by Hersey & Blanchard 1969
Different situations demand different kinds of leadership
Situational leadership requires

adjusting the leaders

emphasis on task behaviour and relationship behaviour

according to the maturity of the follower in performing

their tasks

Situational Leadership, Four Styles

High

Supportive
Behaviour
Relationships

Supporting

Coaching

Delegating

Directing

Low
Low

High

Directive Behaviour
Task

Situational Leadership, Four Styles

High

Supporting

Supportive
Behaviour
Relationships

Coaching

brings out the employees

encouragement

skills, subordinates control

soliciting subordinate input,

day-to-day decisions

leader

listening, praising, asking for

decision

makes

and

the

final

input, giving feedback

Delegating

Directing

low level of involvement in

communication focused on

planning, control of details,

goal achievement, careful

goal clarification

supervising of instructions

leaves the responsibility to

subordinates

Low

Low

Directive Behaviour
Task

High

Situational Theories
of Leadership

Path-Goal Theory
Derived from expectancy motivation theory.
Effective leaders enhance employee motivation by
clarifying perceptions of work goals.
linking rewards to goal attainment.
explaining how goals and rewards can be
achieved.
The essence of this theory is that the leaders job is to use structure,
support and rewards to create a work environment that helps employees
reach organisational goals

Example of Applying Path-Goal

Theory

Fiedlers Contingency model

Fiedlers model postulates that the effectiveness of a leader
depends on
His motivational style
The favorableness of the situation
Leaders motivational styles are mainly
Task oriented
Participative style
Situational factors
Leader member relations ( Good, Poor)
Task- structure ( Structured, Un structured)
Position power ( strong, Weak)

Least preferred co-worker (LPC)

scale
The leadership style of the leader is measured by least
preferred co-worker (LPC) scale.
The LPC scale asks a leader to think of all the people with
whom they have ever worked and then describe the person
with whom they have worked least well, using a series of
bipolar scales of 1 to 8, such as the following:
Unfriendly
Uncooperative
Hostile
Guarded

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Friendly
Cooperative
Supportive
Open

Fiedlers Contingency model

Leadership match
According to this theory task oriented leader will perform
better in high and low controlled situations where as
relations-oriented leader do well in moderate control
situations.

Leadership Theories

Transactional leadership
Assumptions
People are motivated by reward and punishment.
Social systems work best with a clear chain of command.
The prime purpose of a subordinate is to do what their manager

tells them to do.

Transactional leaders determine

What subordinates need to do to achieve their own
and organizational objectives
Helps subordinates become confident that they can

reach their objectives by putting necessary efforts.

Transformational Leadership
Assumptions
People will follow a person who inspires them.
A person with vision and passion can achieve great
things.
The way to get things done is by injecting enthusiasm
and energy.
Transformational leaders attempts to change the whole
organization from one style or culture to another.
The leaders main aim is to elevate, inspire his followers and
himself to higher things in life

Characteristics of transformational leaders

Anticipatory skills
Visionary skills
Empowerment skills
Self understanding skills

Transformational vs. transactional

leaders
Transactional leaders
Monitor people to see that they do the expected, according to
plan

Get people to do things by offering a reward or threatening

them with a punishment.
Transformational leaders
Are capable of charting new courses for their organization.

Are visionaries who challenge people to do exceptional things,

above and beyond the plan.

Charismatic leaders
A charismatic leader is one who attracts followers through his
or her personality .
Assumptions
Charm and grace are all that is needed to create
followers.
Self-belief is a fundamental need of leaders.
People follow others that they personally admire.

Charisma: a special personality characteristic that gives a

person superhuman or exceptional powers .

Charismatic leaders
Charismatic leaders are
dynamic risk-takers who show their expertise and selfconfidence
express high performance expectations
uses symbols and language to inspire others

Key Characteristics of Charismatic leaders

1.
2.
3.

Self Confidence
A vision
Ability to articulate the vision

Power
Power is the ability to influence people and events.
The

term power may be applied to individuals, groups,

teams, departments, organisations and countries.

Power affects resource allocation, assignments, goals, hiring

decisions and other behavior in an organisation .
It is a dynamic relationship that changes as situations and
individuals change.

Sources of power
Various sources of power are
Reward power
Coercive power
Legitimate power
Expert power
Referent power

Power
Reward power:

Individuals ability to influence others behaviour by

rewarding their desirable behaviour
Coercive power:
Individuals ability to influence others behaviour by
punishing their undesirable behaviour.

Legitimate power:
Influence subordinate's behaviours because of the
managers formal position in the organisation.

Power
Expert power:
Individuals ability to influence others behaviour because
of recognized competencies, talents or specialized

knowledge.
Referent power:
Individuals ability to influence others behaviours as a
result of being respected, admired or liked.
Referent power is associated with charisma of the person