Leadership Theories

Directing
 Directing means giving instructions, guiding, counseling, motivating and
leading the staff in an organization in doing work to achieve
Organizational goals.
 Directing is a continuous process initiated at top level and flows to the
bottom through organizational hierarchy
Mrs. Preksha Yadav (IIM‐Indore Alumni)
Direction Has Following Elements:
 Supervision‐ implies overseeing the work of subordinates by their
superiors. It is the act of watching & directing work & workers.
 Leadership‐ may be defined as a process by which manager guides and
influences the work of subordinates in desired direction.
 Motivation‐ means inspiring, stimulating or encouraging the sub‐
ordinates with zeal to work. Positive, negative, monetary, non‐monetary
incentives may be used for this purpose.
 Communications‐ is the process of passing information, experience,
opinion etc from one person to another. It is a bridge of understanding.
Nature And Characteristics Of Directing
 Element of management
 Continuing function
 Pervasive function
 Creative function
 Linking function
 Management of human factor
PRINCIPLES OF DIRECTING
 Harmony of objectives
 Maximum individual contribution
 Unity of command
 Appropriate techniques
 Direct supervision
 Managerial communication
Types of Leadership Styles
 Autocratic Leadership
 Participative Leadership
 Supportive Leadership
 Laissez‐Faire Leadership
 Strategic Leadership
 Transformational Leadership
 Transactional Leadership
 Bureaucratic Leadership
TYPES OF LEADERSHIP THEORIES
 Traits approach/ Theories
 Behavioral approach/ Theories
 Situational approach/Theories
 Emerging approaches of leadership
Traits Theory Of Leadership
Assumptions
 People are born with inherited traits.
 Some traits are particularly suited to leadership.
 People who make good leaders have the right (or sufficient) combination of
traits.
Some Important Traits Of Effective Leaders Are:
 Intelligence
 Physical features
 Inner motivation:
 Maturity
 Vision and foresight
 Open‐minded and adaptability
 Acceptance of responsibility
 Self confidence
 Human relation attitude
 Fairness and objectivity

Behavioral Approaches/Theories
1.Ohio State Leadership Studies
2.Michigan Leadership Studies
3.Managerial Grid
4.Rensis Likert’s Management System
Ohio State Leadership Studies
 Initiating Structure: This is the degree to which a leader defines and

structures his or her role and the roles of the subordinates towards
achieving the goals of the group. Initiating structure is a task‐oriented
leadership style.
 Consideration: Consideration is the degree to which a leader acts in a

friendly and supportive manner towards his or her subordinates.
Consideration is a job relationship characterized by mutual understanding,
respect for subordinates ideas, friendly support and concern for employees
welfare. It is an employee‐oriented leadership style.
High Consideration High Consideration And Low High Structure And High
Structure Consideration
Low Structure And Low High Structure And Low
Low Consideration Consideration Consideration
Low Initiating Structure High Initiating Structure
Michigan Leadership Studies
 Production‐ centered (Task‐oriented) leadership: The production oriented leaders
emphasize productivity by the use procedure, rules and close supervision of subordinates.
They concentrate no technical aspects of the job .employee are seen as tool.
 Employee‐centered (relation oriented) leadership: The employee‐centered leaders

concentrate on human relations and emphasize delegation of authority. Concern for
employee needs, welfare, advancement, etc. leaders who are described as employee‐oriented
stress the relationship aspects of the job.

Blake Mouton Managerial Grid
Managerial Grid is based on two behavioral dimensions:

 Concern for People ‐ This is the degree to which a leader considers the
needs of team members, their interests, and areas of personal
development when deciding how best to accomplish a task
 Concern for Production ‐ This is the degree to which a leader

emphasizes concrete objectives, organizational efficiency and high
productivity when deciding how best to accomplish a task.
Renesis Likert’s Management System:
 Exploitive authoritative system (1)
 Benevolent authoritative system (2)
 Consultative system (3)
 Participative (group) system (4)
Likerts Ideal System
Likert believes that if an organization is to achieve optimum effectiveness
then the “ideal” system to adopt is Participative (system 4).
Situational Approach/ Theories
1.Fiedler’s contingency model/ LPC contingency model
2.Path –Goal Model of leadership
3.Hersey‐Blanchard Situational Leadership Theory
Fiedler’s Contingency Model/ LPC Contingency Model
Fiedler’s model consisting of three elements:
 Leadership styles
 Situational variables
 Relationship between leadership style and situational variable
Leadership Style
There is two types of leadership styles
 Task‐oriented style: it is primarily concerned with the achievement of

task performance. The leader derives satisfaction out of the task
performance
 People‐oriented: it is primarily concerned with achieving good inter

personal relationship and achieving a position of personal prominence.
Situational Variables
 Leader‐Member Relations, referring to the degree of mutual trust,
respect and confidence between the leader and the subordinates.
 Task Structure, referring to the extent to which group tasks are clear
and structured.
 Leader Position Power, referring to the power inherent in the
leaders positions itself.
(LMR) Good Poor
(TS) High low High Low
(LPP)
Strong weak strong weak strong weak strong weak
1 2 3 4 5 6 7 8
Relation Between Leadership Style and Situational Variable
Fielders feel that the effectiveness of leadership style depends on the situation.
Appropriateness of leadership style in different situation has been prescribed below.
 Task directed leadership style tends to be better in group situation that are either
very favorable or very unfavorable to the leader.
 Human relation‐ oriented/ people‐oriented leadership style tends to be in group
situation that are intermediate in favorable
p
Leader behavior
Directive
Supportive
Achievement oriented
participative
Work
environment
Subordinates
Appropriate Task structure
Characteristics
leadership Formal authority
Abilities
Work group
Needs styles
Characteristics
Outcomes
Acceptance
Satisfaction motivation
performance
Hersey‐blanchard Situational Leadership Theory
High Relationship High Relationship
High Relationship Low Task High Task
Participating Selling
Low Relationship Low Relationship Low Relationship

Low Task High Task
Delegating Telling
Low Task Behaviour High Task Behaviour
Leadership Styles
 S1: Telling is characterized by one‐way communication in which the leader defines the
roles of the individual or group and provides the what, how, when, and where to do the
task
 S2: Selling ‐ while the leader is still providing the direction, he or she is now using two‐
way communication and providing the socio emotional support that will allow the
individual or group being influenced to buy into the process.
 S3: Participating ‐ this is now shared decision making about aspects of how the task is
accomplished and the leader is providing less task behaviors while maintaining high
relationship behavior.
 S4: Delegating ‐ the leaders is still involved in decisions; however, the process and
responsibility has been passed to the individual or group. The leader stays involved to
monitor progress.
Maturity Levels
 M1 ‐ They generally lack the specific skills required for the job in hand and
are unable and unwilling to do or to take responsibility for this job or task.
 M2 ‐ They are still unable to take on responsibility for the task being done;
however, they are willing to work at the task.
 M3 ‐ They are experienced and able to do the task but unwilling to take on
responsibility.
 M4 ‐ They are experienced at the task, and comfortable with their own
ability to do it well. They able and willing to not only do the task, but to
take responsibility for the task.
Emerging Approaches To Leadership
 Charismatic Leadership Theory
 Transactional Leadership
 Transformational Leadership
Charismatic Leadership Theory
Charismatic leaders:
1. Have a vision.
2. Are willing to take personal risks to achieve the vision.
3. Are sensitive to follower needs.
4. Exhibit behaviors that are out of the ordinary.
Key Characteristics Of Charismatic Leaders
1. Vision and articulation. Has a vision—expressed as an idealized goal—that proposes a future better
than the status quo; and is able to clarify the importance of the vision in terms that are
understandable to others
2. Personal risk. Willing to take on high personal risk, incur high costs and engage in self‐sacrifice to
achieve the vision
3. Environmental sensitivity. Able to make realistic assessments of the environmental constraints and
resources needed to bring about change
4. Sensitivity to follower needs. Perceptive of others’ abilities and responsive to their needs and feelings
5. Unconventional behavior. Engages in behaviors that are perceived as novel and counter to norms
Transactional And Transformational Leadership
 Transactional Leaders
Leaders who guide or motivate their followers in the direction of established
goals by clarifying role and task requirements
 Transformational Leaders
Leaders who provide the four “I’s” (individualized consideration, inspirational
motivation, idealized influence, and intellectual stimulation)
Full Range Of Leadership Model
Characteristics Of Transactional Leaders
 Contingent Reward: Contracts exchange of rewards for effort, promises
rewards for good performance, recognizes accomplishments
 Management by Exception (active): Watches and searches for deviations
from rules and standards, takes corrective action
 Management by Exception (passive): Intervenes only if standards are not
met
 Laissez‐Faire: Abdicates responsibilities, avoids making decisions
Characteristics Of Transformational Leaders
 Idealized Influence: Provides vision and sense of mission, instills pride,
gains respect and trust
 Inspiration: Communicates high expectations, uses symbols to focus
efforts, expresses important purposes in simple ways
 Intellectual Stimulation: Promotes intelligence, rationality, and careful
problem solving
 Individualized Consideration: Gives personal attention, treats each
employee individually, coaches, advises

Leadership Theories

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Directing

Mrs. Preksha Yadav (IIM‐Indore Alumni)

 Initiating Structure: This is the degree to which a leader defines and

 Consideration: Consideration is the degree to which a leader acts in a

 Employee‐centered (relation oriented) leadership: The employee‐centered leaders

Mrs. Preksha Yadav (IIM‐Indore Alumni)

Managerial Grid is based on two behavioral dimensions:

 Concern for Production ‐ This is the degree to which a leader

 Task‐oriented style: it is primarily concerned with the achievement of

 People‐oriented: it is primarily concerned with achieving good inter

Strong weak strong weak strong weak strong weak

Low Relationship Low Relationship Low Relationship

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