BASIC CONCEPTS OF LEADERSHIP AND
"
MANAGEMENT
LEADERSHIP
 Has many meanings and there is no single definition
broad enough to encompass the total leadership
process
 Leaders are those individuals who are out front,
taking risks, attempting to achieve shared goals, and
inspiring others to action. Those individuals who
choose to follow a leader do so by choice, not
because they have to.
 The essence of leadership is a social influence
process where leaders use interpersonal behaviors to
motivate followers to commit and give their best effort
to contribute to group goals.
 Leaders are in the front, moving forward, taking risks,
and challenging the status quo. It is important to
remember though that a job title alone does not make
a person a leader. Only a person's behavior
determines if he or she holds a leadership role.
Leadership Roles: Decision maker, Coach, Forecaster,
Communicator, Counselor, Influencer, Evaluator,
Teacher, Creative problem solver, Facilitator, Critical
thinker, Change agent, Risk taker, Buffer Diplomat,
Mentor, Advocate, Role model, Energizer Visionary
Innovator
Other characteristics of leaders include the following:
 Leaders often do not have delegated authority but
obtain their power through other means, such as
influence.
 Leaders have a wider variety of roles than do
managers.
 Leaders may or may not be part of the formal
organization.
 Leaders focus on group process, information
gathering, feedback, and empowering others.
 Leaders emphasize interpersonal relationships.
 Leaders direct willing followers.
 Leaders have goals that may or may not reflect those
of the organization
10 Fatal Leadership Flaws
1. A lack of energy and enthusiasm
2. Acceptance of their own mediocre performance
3. Lack of a clear vision and direction
4. Having poor judgment
5. Not collaborating
6. Not walking the talk
7. Resisting new ideas
8. Not learning from mistakes
9. A lack of interpersonal skills
10. Failing to develop others
 It is important to remember that all it takes to stop
being a leader is to have others stop following you.
 Leadership then is more dynamic than management
and leaders do make mistakes that can result in the
loss of their followers.
MANAGEMENT
 Dictionary.com (2013, para 1) defines
management as "the act or manner of guiding or
taking charge" or "handling, direction, or control.
Both definitions imply that management is the
process of leading and directing all or part of an
organization, often a business, through the
deployment and manipulation of resources.
Managers then typically:
 Have an assigned position within the formal
organization.
 Have a legitimate source of power due to the
delegated authority that accompanies their
position.
 Are expected to carry out specific functions,
duties, and responsibilities.
 Emphasize control, decision making, decision
analysis, and results.
 Manipulate people, the environment, money,
time, and other resources to achieve
organizational goals.
 Have a greater formal responsibility and
accountability for rationality and control than
leaders.
 Direct willing and unwilling subordinates.
 If a manager guides, directs, and motivates and a
leader empowers others, then it could be said that
every manager should be a leader. Similarly,
leadership without management results in chaos and
failure for both the organization and the individual
executive.
Thompson (2012) agrees, suggesting that good
management, as defined by strong planning,
organizational skills, and control, allows managers to
intervene when goals are threatened. But it is
leadership skill that is needed to implement the
planned change that is a part of system improvement.
Thus, the integration of both leadership and
management skills is critical to goal attainment.
Dignam et al. (2012) also agree, suggesting that
since change is a primary feature of contemporary
health-care environments, managers must be able to
shift from a traditional focus on operational task
completion to the leadership skills of visioning,
motivating, and inspiring others before desired
outcomes can be achieved.
MacLeod (2012) echoes similar thoughts in his
assertion that in the face of significant change, both
sound management and strong leadership skills are
essential to the long-term viability of today's health-
care organizations.
HISTORICAL DEVELOPMENT OF MANAGEMENT
THEORY
 Theorists' views of what successful management is
and what it should be have changed repeatedly in the
last 100 years.
 Scientific Management (1900 to 1930)
 Frederick W. Taylor, the "father of scientific
management
 The four overriding principles of scientific
management as identified by Taylor (1911) are:
1. Traditional "rule of thumb" means of organizing
work must be replaced with scientific methods. In
 other words, by using time and motion studies
and the expertise of experienced workers, work
could be scientifically designed to promote
greatest efficiency of time and energy.
2. A scientific personnel system must be
established so that workers can be hired, trained,
and promoted based on their technical
competence and abilities. Taylor thought that
each employee's abilities and limitations could be
identified so that the worker could be best
matched to the most appropriate job.
3. Workers should be able to view how they "fit" into
the organization and how they contribute to
overall organizational productivity. This provides
common goals and a sharing of the
organizational mission. One way Taylor thought
that this could be accomplished was using
financial incentives as a reward for work
accomplished. Because Taylor viewed humans
as "economic animals" motivated solely by
money, workers were reimbursed according to
their level of production rather than by an hourly
wage.
4. The relationship between managers and workers
should be cooperative and interdependent, and
the work should be shared equally. Their roles,
however, were not the same. The role of
managers, or functional foremen as they were
called, was to plan, prepare, and supervise. The
worker was to do the work.
 The result of scientific management: Productivity and
profits rose dramatically. Taylor maintained that he
truly believed managers and workers would be
satisfied if financial rewards were adequate as a
result of increased productivity
Max Weber, a well-known German sociologist, began
to study large-scale organizations to determine what
made some workers more efficient than others.
Weber saw the need for legalized, formal authority
and consistent rules and regulations for personnel in
different positions; he thus proposed bureaucracy as
an organizational design. His essay "Bureaucracy"
was written in 1922 in response to what he perceived
as a need to provide more rules, regulations, and
structure within organizations to increase efficiency.
Management Functions Identified (1925)
Henri Fayol (1925) first identified the management
functions of planning, organization, command,
coordination, and control.
Luther Gulick (1937) expanded on Fayol's
management functions in his introduction of the
"seven activities of management"- planning,
organizing, staffing, directing, coordinating, reporting,
and budgeting-as denoted by the mnemonic
POSDCORB.
The management process and a brief description of the
five functions for each phase of the management process
follow:
1. Planning encompasses determining philosophy,
goals, objectives, policies, procedures, and rules;
carrying out long- and short-range projections;
determining a fiscal course of action; and
managing planned change.
2. Organizing includes establishing the structure to
carry out plans, determining the most appropriate
type of patient care delivery, and grouping
activities to meet unit goals. Other functions
involve working within the structure of the
organization and understanding and using power
and authority appropriately.
3. Staffing functions consist of recruiting,
interviewing, hiring, and orienting staff.
Scheduling, staff development, employee
socialization, and team building are also often
included as staffing functions.
4. Directing sometimes includes several staffing
functions. However, this phase's functions
usually entail human resource management
responsibilities, such as motivating, managing
conflict, delegating, communicating, and
facilitating collaboration.
5. Controlling functions include performance
appraisals, fiscal accountability, quality control,
legal and ethical control, and professional and
collegial control.
Human Relations Management (1930 to 1970)
 During the 1920s, worker unrest developed. The
Industrial Revolution had resulted in great
numbers of relatively unskilled laborers working
in large factories on specialized tasks. Thus,
management scientists and organizational
theorists began to look at the role of worker
satisfaction in production. This human relations
era developed the concepts of participatory and
humanistic management, emphasizing people
rather than machines.
Mary Parker Follett (1926) was one of the first
theorists to suggest basic principles of what today
would be called participative decision making or
participative management. In her essay "The Giving
of Orders," Follett espoused her belief that managers
should have authority with, rather than over,
employees. Thus, solutions could be found that
satisfied both sides without having one side dominate
the other.
 The human relations era also attempted to correct
what was perceived as the major shortcoming of the
bureaucratic system-a failure to include the "human
element."
Mayo and his colleagues discovered that when
management paid special attention to workers,
productivity was likely to increase, regardless of the
environmental working conditions. Mayo (1953) also
found that informal work groups and a socially
informal work environment were factors in
determining productivity, and Mayo recommended
more employee participation in decision making.
Douglas McGregor (1960) reinforced these ideas by
theorizing that managerial attitudes about employees
(and, hence, how managers treat those employees)
can be directly correlated with employee satisfaction.
He labeled this Theory X and Theory Y.
 - Theory X managers believe that their employees
are basically lazy, need constant supervision and
direction, and are indifferent to organizational
needs. Theory Y managers believe that their
workers enjoy their work, are self-motivated, and
are willing to work hard to meet personal and
organizational goals.
Chris Argyris (1964) supported McGregor and Mayo
by saying that managerial domination causes workers
to become discouraged and passive. He believed that
if self-esteem and independence needs are not met,
employees will become discouraged and troublesome
or may leave the organization. Argyris stressed the
need for flexibility within the organization and
employee participation in decision making.
 The human relations era of management science
brought about a great interest in the study of workers;
contributed to our understanding about worker
motivation.
Historical Development of Leadership Theory
The Great Man Theory/Trait Theories (1900 to 1940)
 The basis for most leadership research until the
mid-1940s. The Great Man theory, from
Aristotelian philosophy, asserts that some people
are born to lead, whereas others are born to be
led. It also suggests that great leaders will arise
when the situation demands it.
 Trait theories assume that some people have
certain characteristics or personality traits that
make them better leaders than others.
 Contemporary opponents of these theories argue
that leadership skills can be developed, not just
inherited. Avolio, Walumbwa, and Weber (2009)
suggest, however, that very little work has been
done in the last 100 years to determine whether
leadership can actually be developed.
 Trait theories assume that some people have
certain characteristics or personality traits that
make them better leaders than others.
 Contemporary opponents of these theories argue
that leadership skills can be developed, not just
inherited. Avolio, Walumbwa, and Weber (2009)
suggest, however, that very little work has been
done in the last 100 years to determine whether
leadership can actually be developed.
Behavioral Theories (1940 to 1980)
 During the human relations era, many behavioral
and social scientists studying management also
studied leadership. As leadership theory
developed, researchers moved away from
studying what traits the leader had and placed
emphasis on what he or she did the leader's style
of leadership.
 A major breakthrough occurred when Lewin
(1951) and White and Lippitt (1960) isolated
common leadership styles. Later, these styles
came to be called democratic, and laissez-faire.
 Democratic leadership, appropriate for groups who
work together for extended periods, promotes
autonomy and growth in individual workers.
o Democratic leadership is particularly effective
when cooperation and coordination between
groups are necessary. Studies have shown,
however, that democratic leadership may be less
efficient quantitatively than authoritative
leadership.
o The democratic leader exhibits the following
behaviors:
 Less control is maintained.
 Economic and ego awards are used to
motivate.
 Others are directed through suggestions and
guidance.
 Communication flows up and down.
 Decision making involves others.
 Emphasis is on "we" rather than "I" and
"you."
 Criticism is constructive.
 Authoritarian leadership results in well-defined group
actions that are usually predictable, reducing
frustration in the work group and giving members a
feeling of security. Productivity s usually high, but
creativity, self-motivation, and autonomy are reduced.
Authoritarian leadership is frequently found in very
large bureaucracies such as the armed forces.
o The authoritarian leader is characterized by the
following behaviors:
 Strong control is maintained over the work
group.
 Others are motivated by coercion.
 Others are directed with commands.
 Communication flows downward.
 Decision making does not involve others.
 Emphasis is on difference in status (“I" and
"you").
 Criticism is punitive.
Fiedler's (1967) contingency approach reinforced
these findings, suggesting that no one leadership
style is ideal for every situation. Fiedler felt that the
interrelationships between the group's leader and its
members were most influenced by the manager's
ability to be a good leader. The task to be
accomplished and the power associated with the
leader's position also were cited as key variables.
Situational and Contingency Leadership Theories (1950
to 1980)
Mary Parker Follett, one of the earliest management
consultants and among the first to view an
organization as a social system of contingencies. Her
law of the situation, which said that the situation
should determine the directives given after allowing
everyone to know the problem, was contingency
leadership in its humble origins.
 Because it nondirected leadership, the laissez-faire
style can be frustrating; group apathy and disinterest
can occur. However, when all group members are
highly motivated and self-directed, this leadership
style can result in much creativity and productivity.
Laissez-faire leadership is appropriate when
problems" are poorly defined, and brainstorming is
needed to generate alternative solutions.
 o The laissez-faire leader is characterized by the
following behaviors:
 Is permissive, with little or no control.
 Motivates by support when requested by the
group or individuals.
 Provides little or no direction.
 Uses upward and downward communication
between members of the group.
 Disperses decision making throughout the
group.
 Places emphasis on the group.
 Does not criticize.
Interactional Leadership Theories (1970 to Present)
 The basic premise of interactional theory is that
leadership behavior is generally determined by
the relationship between the leader's personality
and the specific situation.
Tannenbaum and Schmidt (1958) built on the work of
Lewin and White, suggesting that managers need
varying mixtures of autocratic and democratic
leadership behavior. They believed that the primary
determinants of leadership style should include the
nature of the situation, the skills of the manager, and
the abilities of the group members.
Hersey and Blanchard (1977) also developed a
situational approach to leadership. Their
tridimensional leadership effectiveness model
predicts which leadership style is most appropriate in
each situation based on the level of the followers'
maturity. As people mature, leadership style becomes
less task focused and more relationship oriented.
Blake and Mouton's (1964) grid showed various
combinations of concern or focus that managers had
for or on productivity, tasks, people, and
relationships. In each of these areas, the leader-
manager may rank high or low, resulting in numerous
combinations of leadership behaviors. Various
formations can be effective depending on the
situation and the needs of the worker.
Schein (1970), an interactional theorist, was the first
to propose a model of humans as complex beings
whose working environment was an open system to
which they responded. A system may be defined as a
set of objects, with relationships between the objects
and between their attributes. A system is considered
open if it exchanges matter, energy, or information
with its environment.
o Schein's model, based on systems theory, had
the following assumptions:
1. People are very complex and highly variable.
They have multiple motives for doing things.
2. People's motives do not stay constant but
change over time.
3. Goals can differ in various situations. A
person's performance and productivity are
affected by the nature of the task and by his
or her ability, experience, and motivation.
4. No single leadership strategy is effective in
every situation
To be successful, the leader must diagnose the
situation and select appropriate strategies from a
large repertoire of skills. Hollander (1978) was among
the first to recognize that both leaders and followers
have roles outside of the leadership situation and that
both may be influenced by events occurring in their
other roles. With leader and follower contributing to
the working relationship and both receiving
something from it, Hollander (1978) saw leadership
as a dynamic two-way process. According to
Hollander, a leadership exchange involves three
basic elements:
 The leader, including his or her personality,
perceptions, and abilities.
 The followers, with their personalities,
perceptions, and abilities.
 The situation within which the leader and the
followers' function, including formal and informal
group norms, size, and density.
o Leadership effectiveness, according to Hollander,
requires the ability to use the problem-solving
process; maintain group effectiveness;
communicate well; demonstrate leader fairness,
competence, dependability, and creativity, and
develop group identification.
Ouchi (1981) interactional leadership theory in his
application of Japanese style management to
corporate America. Theory Z, is an expansion of
McGregor's Theory Y and supports democratic
leadership. Characteristics of Theory Z include
consensus decision making, fitting employees to their
jobs, job security, slower promotions, examining the
long-term consequences of management decision
making, quality circles, guarantee of lifetime
employment, establishment of strong bonds of
responsibility between superiors and subordinates,
and a holistic concern for the workers.
Kanter (1977), develop the theory that the structural
aspects of the job shape a leader's effectiveness.
She postulated that the leader becomes empowered
through both formal and informal systems of the
organization. A leader must develop relationships
with a variety of people and groups within the
organization in order to maximize job empowerment
and be successful. The three major work
empowerment structures within the organization are
opportunity, power, and proportion. Kanter asserts
that these work structures have the potential to
explain differences in leader responses, behaviors,
and attitudes in the work environment.
Nelson and Burns (1984) suggested that
organizations and their leaders have four
developmental levels and that these levels influence
productivity and worker satisfaction.
1. The reactive leader focuses on the past, is crisis
driven, and is frequently abusive to subordinates
2. responsive, the leader is able to mold
subordinates to work together as a team,
although the leader maintains most decision-
making responsibility.
3. At the proactive level, the leader and followers
become more future oriented and hold common
driving values. Management and decision making
are more participative. At the last level, high-
 performance teams, maximum productivity and
worker satisfaction are apparent.
Brandt's (1994) interactive leadership model
suggests that leaders develop a work environment
that fosters autonomy and creativity through valuing
and empowering followers. This leadership "affirms
the uniqueness of each individual," motivating them
to "contribute their unique talents to a common goal."
Wolf, Boland, and Aukerman (1994) also emphasized
an interactive leadership model in their creation of a
collaborative practice matrix. This matrix highlights
the framework for the development and ongoing
support of relationships between and among
professionals working together. The "social
architecture" of the work group is emphasized, as is
how expectations, personal values, and interpersonal
relationships affect the ability of leaders and followers
to achieve the vision of the organization.
Kanter (1989) perhaps best summarized the work of
the interactive theorists by her assertion that title and
position authority were no longer sufficient to mold a
workforce where subordinates are encouraged to
think for themselves, and instead managers must
learn to work synergistically with others
Transactional and Transformational Leadership
Burns (2003), both leaders and followers have the
ability to raise each other to higher levels of
motivation and morality.
o 2 Primary types of leaders in management.
 Traditional manager, concerned with the day-
to-day operations, was termed a
transactional leader.
 The manager who is committed, has a vision,
and is able to empower others with this son
was termed a transformational leader.
o Transactional leaders focus on tasks and getting
the work done. Transformational leaders focus
on vision and empowerment.
Bass and Avolio (1994) suggested that
transformational leadership leads followers to levels
of higher morals because such leaders do the right
thing for the right reason, treat people with care and
compassion, encourage followers to be more creative
and innovative, and inspire others with their vision.
This new shared vision provides the energy required
to move toward the future.
Doody and Doody (2012) contemporary health-care
organizations need increasingly adaptive and flexible
leadership. suggest that transformational leadership
"motivates followers by appealing to higher ideas and
moral values, where the leader has a deep set of
internal values and ideas. This leads followers acting
to sustain the greater good, rather than their own
interests, and supportive environments where
responsibility is shared".
Kouzes and Posner suggest that exemplary leaders
foster a culture in which relationships between
aspiring leaders and willing followers can thrive.
o Kouges and Posner's Five Practices for
Exemplary Leadership:
1. Modeling the way: Requires value
clarification and self-awareness so that
behavior is congruent with values.
2. Inspiring a shared vision: Entails visioning
inspires followers to want to participate in
goal attainment.
3. Challenging the process: Identifying
opportunities and taking action.
4. Enabling others to act: Fostering
collaboration, trust, and the sharing of power.
5. Encouraging the heart: Recognize,
appreciate, and celebrate followers and the
achievement of shared goals.
Full-Range Leadership Theory
This theory, originally developed by Antonakis,
Avolio, and Sivasubramaniam (2003), suggests that
there are nine factors impacting leadership style and
its impact on followers; five are transformational,
three are transactional, and one is a nonleadership or
laissez-faire leadership factor: Rowold and Schlotz
(2009) suggested:
Transforamational Factor:
1. inspirational motivation, is characterized by
the leader's articulation and representation of
vision.
2. Idealized influence (attributed), relies on the
charist the leader to create emotional ties
with followers that build trust and confidence.
3. idealized influence (behavior), results in the
leader creating a collective sense of mission
and values and prompting followers to act
upon these values.
4. intellectual stimulation, leaders challenge the
assumptions of followers' beliefs as well as
analyze subordinates' problems and possible
solutions.
5. individualized consideration, occurs when the
leader is able to individualize his or her
followers, recognizing and appreciating their
unique needs, strengths, and challenges.
Transactional factor,
1. Contingent reward. the leader is task
oriented in providing followers with
meaningful rewards based on successful
task completion.
2. Active management-by-exception, suggests
that the leader watches and searches
actively for deviations from rules and
standards and takes corrective actions when
necessary.
3. management-by-exception passive,
describes who intervenes only after errors
have been detected or standards have been
violated.
 The ninth factor of full-range leadership theory is the
absence of leadership. Thus, laissez-faire is a
contrast to the active leadership styles of
transformational and transactional leadership
exemplified in the first eight factors.