Handout 6

LEADERSHIP IN INDUSTRIAL ORGANISATIONS

Numerous defns some include:

 Stogdill (1974) process of influencing activities of an organised group towards goal

setting and goal achievement
 Lippham (1964) process of initiating structure/procedures for accomplishing orgn goals
 Kensevich (1975)Leadership is a force taht initiate action among people , guide activities
in a given direction and unify efforts towards common goals

Leadership can be provided by:

i. Individual leaders

ii. Group leaders

iii. Whole institution leaders

Dimensions of leadership

The dimensions are based on leadership functions within organisations

i. Human leadership: Refers to leadership that develops positive social relationships and
interactions, participation and encourages commitment and satisfaction
ii. Structural leadership: Refers to leadership that develops clear goals and policies ,
establishes organisational structure, develops accountability and technical support to
implement orgn policies
iii. Political leadership: refers to leadership that builds alliances and coalitions, encourages
participation and collaboration in decision making and resolves conflicts
iv. Cultural leadership: Refers to leadership that inspires and stimulates members to pursue
institutional vision and excellent performance, builds up institutional culture and
transforms existing values and norms of staff in the institution
v. Educational leadership: Leadershipthat provides direction and expert advice on
development of curriculum, diagnosing problems and encourages professional
development

Leadership roles

i. Goal developer: this entails identifying clarifying and prioritising goals, facilitating
organisation devt plans and ensuring expected outcomes are clear
ii. Resource developer: determine what resources are critical for the organisation survival
and devt
iii. Process engineer: relate organisation’s process with output and outcomes. He/she
facilitates participation in decision making process, Institute channels of communication,

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coordination of units, social interactions, organisational climate and teaching and learning
activities
iv. Social leader and satisfier: leader ensure that the demands of key stakeholders are
identified, communicated and appropriate targets set to satisfy the needs and expectations
v. Environmental leaders: the have to assess external competitions that threaten the survival
of organisation and communicate these to members. Plays role of public relations
manager, build organisation public image and market the organisation’s strengths

Types of leadership styles

Style is a consistent pattern of behavior a person uses in an attempt to influence the behavior and
action of others. Leadership style is the manner and approach of providing direction,
implementing plans and motivating people.

1. Autocratic leadership.

This style is also called dictatorship. The leader makes decisions unilaterally without consulting
staff

He exercises authority through decision making, arbitration, control, reward and punishment.

Characteristics of autocratic leaders

 Conscious of his position

 Little faith in staff members
 Sensitive to criticism
 Aggressive when challenged
 Has fondness for giving orders, directives and ensuring they are enforced
 Prefers to dominate thinking of others and expects compliance
 Fondness on checking on staff

What problems are these types of leaders likely to experience?

2. Laissez faire leadership

Laissez faire is a French phrase which means “leave it be”. Laissez faire is also referred to as
free rein. The leader uses very little power leaving the subordinates a high degree of
independence in their operations. This style works best for teams in which individuals are very
experienced and skilled self -starters. Laissez faire can also refer to a situation where the leader
is not able to exert sufficient control.

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Characteristics of laissez faire leadership

 Anyone can volunteer to do something whenever they feel inspired to do so

 The leader does not provide motivation or direction
 Leader exercises no authority
 Leader depends on subordinates to set and achieve their own goals
 There is no way of telling progress as there is little communication in the organization

3. Democratic leadership

It is also referred to as participative or supportive leadership. Decision making is a consultative

process although the leader makes final decision and power is decentralized. The Leader
respects individual thoughts, opinions and freedom. He involves employees in determining roles
and tasks. He faces conflicts calmly and helps employees find solutions. He gives criticism and
praise objectively and promotes self –motivation. This style is ideal in repetitive and routine
work.

What challenges is a democratic leader likely to experience?

4. Transactional leadership

Transactional leadership is based on the exchange relationship between the leader and followers.
The leader recognizes specific follower desires and provides goods that meet those desires n
exchange for follower meeting specific objectives or performing certain duties. The follower
receives the rewards for job performance the leader benefits from the job done.

5. Transformational

Transformational leadership is based on the objective of transforming the performance or

fortunes of an organization. It is based on the ability of an individual to envisage some new
social condition and communicate this vision to followers. T L do not use tangible incentives to
control specific transactions of followers. The focus is generating a vision, shared values and
ideas and finding a common ground to enlist followers in the change process. T L is sensitive to
the needs and motives of followers and tries to help followers to reach their fullest potential.
There is direct communication and emotional bond between the members of the group

6. Bureaucratic leadership

B L work by the book ensuring their employees work by the letter. Tasks are broken down into
manageable parts with each official specializing in a particular area. Chain of command and

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responsibility are established whereby every official is accountable to his/her superior. Rules
impose strict discipline and control and give little room for personal initiative or discretion.
Officials are appointed on the basis of technical knowledge and expertise and promotion is based
on seniority, achievement or both

Elements of leadership influence

1. Authority

Refers to the right to exercise power that is derived from the office an individual holds. It is the
right conferred to an administrator of an organization to make decisions in the course of
discharging his/her responsibilities. It usually flows from top to bottom of the organization
structure. It can be delegated

Basis of authority

 Position authority: vested or conferred to an individual by virtue of the standing within an

given organization.
 Personal authority: is given to us by the followers themselves because of the person we
are.

Types of Authority

Rational-legal authority

 Rests on the belief in the "legality" of formal rules and hierarchies, and in the right of
those elevated in the hierarchy to posses authority and issue commands.
 People will find this type of authority legitimate, if the authority is distributed to leaders
based on e.g. rationality and capability.
 Legal authority can be exercise through line, staff and functional authority
 Line Authority: Deals with policy making and foreseeing their implementation.
Flows downwards through the chain of command
 Staff Authority: Power to give advice, support, and service to line departments.
Staff managers do not command others.
 Functional Authority:Staff's ability to initiate actions within a professional area
of expertise. Functional Authority is delegated by line managers
2. Traditional authority

Traditional authority rests on an individual because of traditional circumstances like inheritance,

traditions, beliefs values or norms of the society. These systems are however dependent upon the
followers' acceptance of this authority, and that the followers see this type of authority as
legitimate.

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3. Charismatic authority

Charismatic authority rests on the belief in an exceptional sanctity, heroism or exemplary

character of an individual, and on the normative patterns or orders revealed and issued by him or
her. Charismatic leaders are often seen as legitimate in times of crisis or change when
extraordinary leadership is called for, and when this extraordinary leadership is recognized in the
specific authorial figure by followers.

Power

Power is the ability of a person to influence the beliefs, actions and behavior of other persons.
Power is the force behind authority. It includes the ability to impose sanctions to an individual to
do something they would otherwise not do. Power is used when there is need to restore authority.
The limits of power must be known to minimize misuse and abuse.

Types of power

The power that we have comes from both the position that we hold in an organization (Position
Power) and the person that we are (Personal Power).

a. Position power

Position power is something that is given to us by virtue of the standing we have in a given
organization. This type of power is only of use to us in the domain where the power has been
granted to us.We have three different types of power that come from our position: legitimate
power, coercive power and reward power.

 Legitimate power: The legitimate power we have is really tied to the authority of our
position. In this case, followers do what we ask just because we’re the boss and they
respect our position of authority.
 Coercive power: Coercive power can take legitimate power to the extreme by using the
authority of our position to punish or use the threat of punishment to get something done.
Many times this doesn’t even need to be an explicit threat.
 Reward power: Reward power is the flip side of the coercive power coin. Reward power
allows us to use the authority of our position to reward followers for their performance.
This is the positive use of position power compared with the negative that is coercive
power.

b. Personal Power

Where position power is vested in our organizational structure, personal power is given to us by
our followers themselves because of the person that we are. We gain this power two different
ways, either as an expert or because of our interpersonal qualities.

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 Expert power: Expert power comes from the specialized skills and knowledge that we
have. This type of power is usually limited to the specific area where we hold the
expertise. If there are others around us with just as much or more expertise in an area, the
amount of our power is diminished.
 Referent Power: Referent power is bestowed upon us by our followers because they feel
an interpersonal connection with us. Referent power comes from how followers feel
about the leader. Most times it’s based on personal qualities and tends to be the type of
power that generates the greatest level of loyalty from followers. This truly is power that
comes from who we are as an individual.

Reflection
A good leader should use authority and power carefully making sure he/she uses them at the
appropriate time or when the situation demands. This requires that the leaders have a high degree
of responsibility

Responsibility

It is the obligation to achieve certain objectives and goes hand in hand with authority. A person
who accepts responsibility also accepts to be held accountable for that responsibility. By working
within the confines of power and authority a leader is executing his or her responsibility.
Irresponsible leaders disregard official procedure in order to satisfy their selfish ambitions. In
performing duties subordinates are assigned responsibilities and are accountable to their
superiors for to performance of such duties

Decision making

A mental process that entails selection of a course of action from competing alternatives.
Decisions are made with regard to finances, personnel, equipment, supplies and time.Decision
making is an important element of leadership as it has a great influence in achievement of
organizational objectives

Expertise

It consists of those characteristics, skills and knowledge of a person that distinguishes his/her
from novice or les experience people. Expertise is developed from specialization, field
experience and exposure to relevant functions. The following are characteristics of a leader with
expertise

 Leads by example
 Has ability to use power effectively and responsibly
 Has ability to build team spirit

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 Inspires staff to use their full capacities

 Creates conducive climate for staff
 Creates a sense of value and purpose in work
 Communicates issues to staff to enhance understanding between him and his followers
 Is patient
 Composed
 Self-confident
 Outgoing
 Sensitive to needs and expectations of team members
 Involves in decision making
 Delegates responsibilities

LEADERSHIP THEORIES

Leading is such an important process in all organizations that it has been researched on for
decades. This research led to the formulation of theories to explain leadership. These theories are
also referred to as approaches. These approaches can be identified as follows:

The trait theory of leadership

Are leaders born or made? This is the question that the trait approach to leadership tried to
answer. Researchers thought that effective leaders must have certain qualities that set them apart
from the ineffective leaders and from those that never become leaders. The researchers tried to
come up with a distinct set of traits that would make one a successful leader. Traits are physical
and mental characteristics of a person. This theory states that leaders are born and not made.
Such leaders have the following characteristics:

 Great ability to communicate

 More intelligence than ordinary people
 A commanding voice
 An imposing personality
 Can easily influence and even control decision-making
Trait theories claim that you can tell such a leader by his/her appearance and personality. The
trait theory cannot fully explain the concept of leadership. This is because you may know
someone who has the qualities identified and is not a leader. It is also not very easy to measure
personality traits so that we know the exact quantity required to make one an effective
leader.Therefore, there is no evidence to support the trait theory. Even if a person of outstanding
personality succeeds in his administrative leadership, there are many other leaders whose success
cannot be based on the possession of a dynamic personality. There is little reason to assume that
the personal traits and abilities of educational managers are more significant factors in their
achievement than are their loyalties, aspirations, connections and the chances of appropriate
vacancies occurring at a crucial time in their career. Hence leadership qualities are not

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completely inborn. They can also be acquired through learning and experience. Trait theory is
related to charismatic leadership style.

The behavioral approach

We have seen that the trait theory could not prove that leaders are born. This made researchers to
take an interest in finding out whether leaders can actually be made. They tried to establish
whether there is certain prescribed leadership behaviour, such that once a person carries out
certain prescribed tasks, he/she is bound to be successful.The theorists identified two types of
leadership behaviour:
 Consideration: Leaders engage in consideration when they show their subordinates that
they trust, respect, and care about them. Managers truly look out for the wellbeing of
their subordinates and do what they can to help subordinates feel good and enjoy their
work.
 Initiating structure: Leaders engage in initiating structure when they take steps to make sure
that work gets done, subordinates perform their jobs acceptably, and the organization is
efficient and effective. Assigning tasks to individuals or groups, letting subordinates know
what is expected of them, deciding how work should be done, making schedules,
encouraging adherence to rules and regulations, motivating subordinates to do a good job, are
examples of initiating structure.
Initiating structure and consideration are independent leader behaviors. Leaders can be high on
both, low on both, or high on one and low on the other. These two dimensions of a leader’s
behavior can be termed as employee- centeredbehavior and job-oriented behavior.You might
expect that effective leaders would perform both kinds of behaviours, but research has found that
this is not necessarily the case. The relationship between performance of consideration and
initiating structure behaviours and leader effectiveness is not clear-cut. We find some leaders
who are effective even when they do not perform consideration behaviours or initiating structure
behaviour. There are also some leaders who are ineffective even when they do not perform both
kinds of behaviours. These findings made scholars to continue with research on leadership
behaviour. The mere performance of certain behaviours does not ensure that a leader is effective.
There are leaders who possess the right traits and performed the right behaviour but turned out to
be ineffective leaders.

Contingency theory of leadership

We find that managers lead in a wide variety of situations and organizations have various kinds
of subordinates performing diverse tasks in many environmental contexts. Given the wide
variety of situations in which leadership occurs, what makes a manager effective in one situation
(such as certain traits and behaviours) is not necessarily what the manager needs in order to be
equally effective in a different situation. We also realize that the traits and behaviours that can
lead to a manager being an effective leader in one situation might actually result in the same
manager being an ineffective leader in another situation.A contingency approach to leadership

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takes into consideration the situation or context within which leadership occurs. According to the
contingency model, whether a manager is an effective leader or not, is determined by the
interplay between what the manager is like, what he/she does and the situation in which
leadership takes place.

A contingency model proposes that whether a leader who possesses certain traits or performs
certain behaviours is effective or not, depends on, (or is contingent upon), the situation or
context. This is why the theory is referred to as situational theory of leadership. Attention was
now focused on the situational variables that influence leadership roles, skills and behaviour.
Fred E. Fiedler was in favor of the contingency theory. He argued that, group performance and
effectiveness are dependent upon the interaction of leadership style and the amount of control
that the supervisor has over the situation.

The situational theory says that the needs and demands of people in a certain environment dictate
the kind of leadership required. Leaders arise in time of need and are called forth as a result of
time, place and circumstances. The traits alone do not make or cause a person to be a leader. A
particular situation or environment will create the kind of leadership suited to it. Therefore, a
person may be an effective leader in one situation but ineffective in another. The situation in
which a leader operates can be classified as follows:

 Leader – member relations: refers to the degree of confidence, trust and respect followers
have for the leader.
 Position – power relations: refers to the amount of power attached to a leader’s position.
 Task – structure relations: refers to the degree to which the task assignments are clear to
both the leader and the subordinates.

Functional theory of leadership

This theory holds that leadership is a shared process between the individual and the organization.
This is to say that individuals have needs, which they want fulfilled and satisfied, while
organizations have expectations, which they want performed in a satisfactory way. If the
individuals have to do a good job their needs have to be well met, and if the organization’s
expectations have to be satisfied, then individuals have to perform their tasks well or do the
functions allocated well. Hence, the needs and performance of individuals in a group and the
group expectations will determine the kind of leadership to be applied.

Path – goal theory of leadership

It has its roots in the expectancy motivation theory, which emphasizes on how leaders can
facilitate task performance by showing subordinates how performance can be instrumental in
achieving desired rewards. This theory argues that, if you are satisfied with your work, you will
work hard. And you will work hard, if you believe that your work will lead to outcomes that are
highly valued. Furthermore, this theory emphasizes that managerial behaviour should be

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motivating or satisfying to the extent that it increases goal attainment by subordinates and
clarifies the paths to these goals. The path goal theory rests on two propositions:

 That the leader behaviour will be motivating to the extent that it makes subordinate
satisfaction contingent upon effective performance and to the extent that it complements
the subordinates’ work environment by providing necessary guidance, clarity of
direction, and rewards for effective performance.
 That the leader behaviour will be acceptable and satisfying when subordinates perceive it
to be an immediate source of satisfaction or as being instrumental in obtaining future
satisfaction.
The path goal theory stresses that effective leadership is a function of the interaction between
leader behaviour and situational or contingency variables of subordinate characteristics and
environmental factors. These contingency factors interact with leader behaviour to determine
employee attitudes and behaviour, which may be either motivated or constrained.

The group function theory

In this theory, leadership entails more than the behaviour of a specific person identified as a
leader. Leadership is a function of the participation of a group. Any action promoting the
attainment of the group’s goal or the completion of its tasks is a form of leadership.

Group function theory is based on the divisibility of the task and the role of the leader within a
group. Leaders arise out of the compatibilities of groups and tasks. People in a group will be
given tasks according to their ability to do those tasks. Some tasks may require great
experiences, others strength and endurance. This means that each type of work and each group
of people will require different leadership skills.

The social system theory

This theory reveals three major dimensions of relations between leaders and their followers.

 Nomothetic dimension of leadership

Nomothetic dimension of leadershiphas the following characteristics:

The leader:

 Stresses on the performance of the job

 Stresses on the needs of tasks, goals and production structures of the organization
 Goes by the book
 Expects the subordinates to be concerned in the performance of the job only
 Perceives his/her position as the centre of authority
 Ignores the needs of the subordinates

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The approach would not be very popular with subordinates as they feel that their social needs
will not be met. Human relations between the superior and the subordinates are minimal.
However, the tasks are accomplished on time.

 Idiographic dimension of leadership

The leader shows the following behaviours:

 Delegates to subordinates according to their personal capabilities

 Emphasizes the personal needs and values of the subordinates
 Expects workers to work out things for themselves
 Beliefs that bureaucratic procedures should be tailored to fit the individual needs of the
subordinates
 Expects individual employees to be free in their participation in organizational goals

There are similarities between idiographic theory and the human relations theory of
management.

 Transactional dimension of leadership

This leadership theory ishybrid of idiographic and nomothetic styles of leadership. Let us list
down the characteristics of the theory:It is concerned with:

 The needs of the individual worker and the demands of the organization
 Tends to match the appropriate blend of roles and needs of the organization as the
situation demands
 The leader is situationally- oriented
 Balances personal needs and organizational demands in achieving set goals

In the theory there are attempts to meet both organizational and personal needs, the organization
ends up lacking direction. The organization is almost leaderless. It is also not easy to establish
firm leadership in such a situation. There is also a problem of coming up with the “middle
position” where you satisfy both the organizational needs and the personal needs of the
employees.

Conclusion

From the above discussion, we have seen that leadership varies from one organization or society
or individual to another. It is important for you to know that no two leaders are alike in the way
they administer their organizations. Of course, life would become too predictable and dull if
they did.

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