Chapter (7)

Leadership

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 Chapter (7)
Leadership
Introduction
After discussing the meaning of leadership, difference between leadership and
management, and early models of leadership; which were sufficient to explain
leadership effectiveness. Realizing this, researchers began building more
complicated models for leadership, focused not only on the leader and what he or she
does but also on the situation or context within which they lead.

In this part of the chapter, we will discuss the following points:

7-6) Contingency models of leadership

A) Fiedler’s Contingency Model
B) House’s Path-Goal Model
C) The Leader Substitutes Model

7-7) Transformational Leadership

A) Definition of transformational leadership
B) Characteristics of transformational leaders
C) Distinction between transformational and transactional leadership

7-6) Contingency Models of Leadership

According to contingency models, whether or not a manager is an effective leader is

the result of the interplay among what the manager is like, what he or she does, and
the situation in which leadership takes place. There are three prominent contingency
models developed to shed light on what makes managers effective leaders: Fred
Fiedler’s contingency model, Robert House’s path–goal theory, and the leader
substitutes model.

A) Fiedler’s Contingency Model

Fiedler’s contingency model provides us with the factors that affect the leader’s
capability to be an effective leader in some situations and ineffective in other
situations.

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A-1) Leader Style; which refers to the personal characteristics of the leader that
direct his way of leadership. In this regard the leader style may be relationship-
oriented leaders or task-oriented leader.
Relationship-oriented leaders
Leaders whose primary concern is to develop good relationships with their
subordinates and to be liked by them.
Task-oriented leaders
Leaders whose primary concern is to ensure that subordinates perform at a high level.
A-2) Situation Characteristics; Fiedler identified three situational characteristics
that are important determinants of how favorable a situation is for leading: leader–
member relations, task structure, and position power.
Leader–member relations
The extent to which followers like, trust, and are loyal to their leader; a
determinant of how favorable a situation is for leading.
Task structure
The extent to which the work to be performed is clear-cut so that a leader’s
subordinates know what needs to be accomplished and how to go about doing it; a
determinant of how favorable a situation is for leading.
Position power
The amount of legitimate, reward, and coercive power that a leader has by virtue
of his or her position in an organization; a determinant of how favorable a situation
is for leading.
Research studies tend to support some aspects of Fiedler’s model but also suggest
that, like most theories, it needs some modifications. Researchers find fault with the
model’s premise that leaders cannot alter their styles. That is, it is likely that at
least some leaders can diagnose the situation they are in and, when their style is
inappropriate for the situation, modify their style so that it is more in line with what
the leadership situation calls for.

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B) House’s Path-Goal Theory
The premise of path–goal theory is based on the expectancy theory so that effective
leaders motivate subordinates to achieve goals through:
1) Clearly identifying the outcomes that subordinates are trying to obtain from the
workplace, these outcomes can range from satisfactory pay and job security to
reasonable working hours and interesting and challenging job assignments.

2) Rewarding subordinates with these outcomes for high performance and the
attainment of work goals.

3) Clarify the paths to goal attainment for subordinates, remove any obstacles to
high performance, and express confidence in subordinates’ capabilities.

Also the path-goal theory identifies four kinds of leadership behaviors that
motivate subordinates:
• Directive behaviors are similar to initiating structure and include setting goals,
assigning tasks, showing subordinates how to complete tasks, and taking concrete
steps to improve performance.

• Supportive behaviors are similar to consideration and include expressing concern

for subordinates and looking out for their best interests.

• Participative behaviors give subordinates a say in matters and decisions that affect
them.

• Achievement-oriented behaviors motivate subordinates to perform at the highest

level possible by, for example, setting challenging goals, expecting that they be met,
and believing in subordinates’ capabilities.

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C) The Leader Substitutes Model

The leader substitutes model suggests that leadership is sometimes unnecessary

because substitutes for leadership are present. A leadership substitute is something
that acts in place of the influence of a leader; members of an organization sometimes
can perform at a high level without a manager exerting influence over them.
Leadership substitutes may be characteristics of subordinates—such as their skills,
abilities, experience, knowledge, and motivation—can be substitutes for leadership.
Characteristics of the situation, or context—such as the extent to which the work is
interesting and enjoyable—also can be substitutes.
Substitutes for leadership can increase organizational efficiency and effectiveness
because they free up some of managers’ valuable time and allow managers to focus
their efforts on discovering new ways to improve organizational effectiveness.
Bringing it all together
The three contingency models of leadership just discussed help managers focus on
the necessary ingredients for effective leadership. They are complementary in that
each one looks at the leadership question from a different angle.
7-7) Transformational Leadership
Definition of Transformational Leadership
It is defined as the leadership that occurs when managers change (or transform)
their subordinates in three important ways:
A) Making subordinates aware of how important their jobs are for the
organization and how necessary it is for them to perform those jobs as best they
can so the organization can attain its goals.
B) Making their subordinates aware of the subordinates’ own needs for personal
growth, development, and accomplishment.
C) Motivate their subordinates to work for the good of the organization as a
whole, not just for their own personal gain or benefit.

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Characteristics of transformational leaders
Transformational leaders should have some characteristics that make them
distinguished from other leaders. They should be charismatic, stimulating
subordinates intellectually, and engaging in developmental consideration
A) Be a Charismatic Leader
An enthusiastic, self-confident leader who is able to clearly communicate his or
her vision of how good things could be.
B) Stimulating Subordinates Intellectually
Transformational managers openly share information with their subordinates so
they are aware of problems and the need for change. In the past subordinates might
not have been aware of some problems, may have viewed problems as a
“management issue” beyond their concern.
Transformational manager engages and empowers subordinates to take personal
responsibility for helping to solve problems in accordance to the leader’s vision;
this is known as “Intellectual stimulation”.
C) Engaging in Developmental Consideration
When managers engage in developmental consideration, they not only perform the
consideration behaviors described earlier, such as demonstrating true concern for
the well-being of subordinates, but also go one step further. The manager goes out
of his or her way to support and encourage subordinates, giving them
opportunities to enhance their skills and capabilities and to grow and excel on the
job.
Distinction between Transformational and Transactional Leadership
Transactional leadership
Leadership that motivates subordinates by rewarding them for high performance
and reprimanding them for low performance. Managers use their reward and
coercive powers to encourage high performance.
Research has found that transformational leaders have their subordinates’ higher
levels of job satisfaction and performance.
End of Lecture (10)
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