CHAPTER EIGHT:

LEADERSHIP
WHAT IS LEADERSHIP
HOW TO DEVELOP YOUR
LEADERSH IP SKILLS
• Be proactive
• Build relati o nships
• Communic ation sk ills
• Time man agement
• E motional i n telli gence
• Continuous learning
• L ead by ex ample
 DIFFERENCE BETWEEN

LEADERSHIP AND MANAGEM ENT

LEADERSHIP MANAGEMENT
• M an age m e n t is th e proc e ss of pl an n in g, organ izin g,
• Leadership involves set t ing a vision, inspirin g dire c tin g, an d c on trol l in g re sou rc e s to ac h ie v e
and mot ivat ing ot hers, and guiding them t owards spe c if ic goal s an d obje c tiv e s.
a common goal or purpose.
• M an age rs are re spon sibl e f or ov e rse e ing th e day -
• Leaders are visionari es who articulate a t o-day ope ration s of an organ ization or a te am .
compelling vision for t he fut ure and inspire
• T h e y e n su re th at tasks are al l oc ate d e f f ic ie n tly,
ot hers to work towards it .
re sou rc e s are u til ize d e f f e c tiv ely, an d goal s are
ac h ie v e d with in e stabl ish e d c on strain ts.
• They exhibit traits such as empat hy, int egrity,
courage, and creat ivit y.
• M an age rs typic al l y f oc u s on im pl e m e n tin g
strate gie s, c oordin atin g ac tiv itie s, m on itorin g
• Effect ive leaders empower and develop t heir
pe rf orm an c e , an d m akin g de c ision s to sol v e
team members, fostering an environment of
probl e m s an d ac h ie v e de sire d ou tc om e s.
trust , collaboratio n, and innovat ion .
• M an age m e n t in v ol v e s m ore tan gibl e tasks su c h as
• Leadership is more about influencing and bu dge tin g, sc h e du l in g, staf f in g, an d e v al u atin g
inspiring people rat her t han cont rolling t hem. pe rf orm an c e .
 Kinds Of Leadership
A. Formal Leadership
Formal Leadership is where a person is officially designated as the leader of a group. examples of
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this kind of leadership are CEO of a company, a teacher at a school, the captain of a sporting team
and the head of a department . Its the formal Leader's job to organize the available resources, work
out the logistics and motivate the members of the team to carry out their tasks to the best of their
abilities .

B. Informal Leadership
An informal Leader is a person who's not officially appointed as the head of a group. However, the
other members look to him for motivation and inspiration Though the CEO is the formal leader of a
company, the employees may look up to a colleague who, they believe, shares their goals and
visions and has some knowledge or experience that will help them realize their goals. Although
these leaders are not in a formal position of leadership, they are recognized as leaders by their
peers.
 THE DIFFERENCES
The Leaders have authority and certain Rights and privileges that informal
leaders lack. Consider the case of a company where the CEO is the formal
leader and an employee is the informal leader. The formal leader wields
power over the group and has the authority to discipline and punish errant
members. Her authority also gives her the ability to give rewards to the
group, nor is he able to reward his teammates.

He has to rely on open communication, a shared vision, guidance and

charisma . The informal leader has to lead through example, individual
behavior and personality.
POWER AND THE LEADER

In the business world,

power refers to a leader's ability to influence the behavior
of other people. People can acquire power from two sources.
It can emerge from the position occupied by a person in the organization or
from an individual's characteristic and skills. The former is known as
positional power, while the latter is known as personal power. Power plays a
critical part in the workplace. It is important to achieve tasks, fulfill targets
and standards, provide satisfaction to employees and achieve profitability. A
leader or manager can use either of the two kinds of power mentioned
earlier or combination of both to achieve the greatest impact. However, at
times, the kind of power to be used, i.e. positional power or personal power is
determined by the specific situations or contexts.
POSITIONAL POWER
A leader acquires positional power from their status or position in the organization,
i.e. it is the authority provided to a person because of the rank they occupy within
the organizational structure or hierarchy. People with positional power are bound
by the rules and regulations that have been established by the organization or
institution to which they belong. The main aim of this kind of power is to make sure
that people work together with one another to achieve the goals of the
organization. Positional power makes sure that people work in a specific way and
towards the same objectives. Leaders with positional power have the authority to
hire and fire people, offer them rewards or punishment and provide instructions
and directions to all those who are working under them. Positional power is
awarded to a person because of their rank or title in an organization. Hence, as it is
based on external factors, it is possible to take it away from individuals.
Positional power is based on three types:

Legitimate power- This refers to formal power based on a position or rank that an
individual holds in a company.

Reward power- This is the power that managers use to reward or influence their
subordinates for their good actions.

Coercive power- Managers use this power to punish their subordinates when they
don't fulfill or meet their expectations.

This is an example of positional power.

Mary works as an HR manager in an insurance company. She noticed that one
of the employees was underperforming despite her various attempts to help.
Mary had no option but to fire the employee since it was within her power.
PERSONAL POWER
To be highly effective leader's, one needs something more than just a
designation or a title. It needs personal power, which is the power given to an
individual because of their personal skills and competencies. It is the power awarded
to individuals by others, and is not formally assigned by the organization.
Personal power is linked to a person's integrity and their readiness to live up to their
promises. It is essentially a form of power that inspires and motivates other people to
be fully involved in achieving the goals and objectives of the organization.

Personal power emerges from the personal characteristics of a person; hence, it is

internal in nature, and emerges from internal features of a person, such as credibility
intelligence, skills and experience, self-confidence, etc. Therefore, it cannot be taken
away from a person.
EXPERT POWER
Expert power differs from referent power in that it emphasizes knowledge,
not charisma.

In the workplace, somebody with expert power is perceived to have a high

level of knowledge on a certain subject. This person has a strong influence
over their peers, as others trust their input on decisions and strategies.
They are looked up to by others who share similar skill sets and are sought
after for solutions and advice. Employee-sharing-knowledge-with-
colleague-personal-power. Expert power is to referent power.
REFERENT POWER

Referent power is characterized by strong interpersonal skills.

A leader whose charisma and approachability puts their team at ease and
inspires commitment has strong referent power. When you listen to
someone talk and are inspired by their confidence, drawn in by their
charisma, and comforted by their presence, they are exercising referent
power.

This doesn’t mean you’re being manipulated. It just means that the person
you’re talking to commands respect because of their leadership and
communication skills.
The behavioral theory of leadership suggests that
leaders can learn and imitate behaviors to become
successful. It focuses on actions rather than
inherent qualities and offers flexibility for leaders to
adapt. However, it does not provide specific
guidance for all situations.
Contingency theory focuses on the situational
context of leadership and suggests that a leader’s
effectiveness is determined by the specific
situation. It emphasizes the importance of adapting
leadership styles and finding the right leader for
each situation.
The trait theory suggests that good leaders are born
with innate traits, but critics argue it overlooks the
importance of effort and development. It is criticized
for its focus on masculine traits and not considering
diverse leadership psychology. Leadership is not
solely determined by inherent gifts, but also by the
cultivation of skills and abilities.
CONTINGENCY THEORIES

Contingency theories in management suggest that there is no one best

way to lead or manage an organization. Instead, the most effective
leadership or management style is contingent upon various factors such
as the situation, the employees involved, the task at hand, and other
variables. Different situations may require different approaches, and a
good leader is able to adapt their style to fit the needs of the situation
and the individuals involved.
LEADERSHIP STYLE
A leadership style is a leader's method of providing
direction, implementing plans, and motivating people is the
first step in using the model or to acquire being a leader.

The LEADERSHIP STYLE of the leader is thus fixed and measured by

what Fiedler calls the least preferred coworker (LPC)

Fred Edward Fiedler

According to Fiedler's work with the contingency model of
leadership it provides to an answer to the failings of the trait and
behavioral theories and added to the understanding of the
dynamics of leadership.
Least Preferred Coworker (LPC)
Least preferred coworker (LPC) scale, an instrument for measuring an
individual's leadership orientation.

How the Least-Preferred Coworker Scale Works

A typical set of opposing adjectives used in the LPC scale would
include pleasant or unpleasant, friendly or unfriendly, supportive or
hostile, and so on.
Applying the LPC Scale
The scale is based on the notion that no single leadership style
is perfect or ideal, as an organization's needs change depending
on circumstances and context.

Special Considerations
Situational favorableness also plays a role in the leadership
style adopted.
Least Preferred Coworker (LPC)
KEY TAKEAWAYS

1. The Least-Preferred Coworker Scale (LPC) is a management heuristic that

assigns an individual's leadership style as either task-oriented or relationship-
oriented.

2. The scale utilizes a subjective evaluation of an individual's attitudes toward their

least favorable co-worker.

3. By seeing how one responds to evaluating the one person they'd least prefer to
work with, overall management style can be inferred.

4. The leadership-member relationship is a barometer of how much influence and

trust exists between the team and its leader.

5. The model presented by the scale presents the notion that no single leadership
style is perfect or ideal, as the needs change depending on circumstances and
context.
Situational Favorableness
Leader-Member Relations
This is the level of trust and confidence that your team has in you. A leader who is more trusted
and has more influence within the group is a more favorable situation than a leader who is not
trusted.

Task Structure
This refers to the type of task your doing clear and structed or vague and unstracted task or
task where the team and leader have little knowledge of how to achieve them are viewed
unfavorably.

Leader's Position Power

This is the amount of power you have to direct the group and provide rewards or punishment.
The more power you have the more favorable your situation.
Path-Goal Leadership Theory
The path- goal theory can best be though of as process
in which leader's select specific behavior that are best
suited to the employee's needs and the working
environment so that they may best guide the
employee's though their path in the obtainment of
their daily work activities.
The Path- Goal Process
 Path-Goal Theory of Leadership by House and Mitchell

The Path-Goal Theory of Leadership, developed by Robert House and Terence Mitchell,
is a leadership theory that focuses on how leaders can motivate their followers to
achieve their goals. This theory suggests that effective leaders are those who can
provide the necessary guidance and support to help their followers navigate the path to
success.

The theory proposes that leaders should adjust their leadership style to fit
the needs of their followers and the specific circumstances they are facing.
The leader's behavior is contingent upon the satisfaction, motivation, and
performance of their subordinates. The goal is to enhance the followers'
motivation and satisfaction by clarifying the path to achieve their goals and
removing any obstacles that may hinder their progress.
 In essence, the Path-Goal Theory emphasizes the importance of
leaders providing clear direction, support, and motivation to their
followers. By doing so, leaders can enhance their followers'
performance, job satisfaction, and overall effectiveness. This theory
recognizes that different situations may require different leadership
styles, and effective leaders are those who can adapt their style to
meet the needs of their followers and the goals they are striving to
achieve.
Leadership Behaviors
1. Directive Leader
A directive leader is someone who provides clear instructions, guidance, and expectations to their followers. They
take charge and tell their subordinates what needs to be done, how it should be done, and when it should be
completed. This leadership style is effective in situations where tasks or goals are ambiguous, as it provides
structure and clarity.

2. Supportive Leader
A supportive leader is someone who shows concern for the needs and well-being of their followers. They create a
friendly and psychologically comfortable work environment, treat their team members as equals, and offer support
and assistance when needed. This leadership style promotes a positive work atmosphere, fosters trust, and
enhances job satisfaction.

3. Participative Leader
A participative leader is someone who involves their followers in the decision-making process. They seek input,
ideas, and opinions from their team members and value their contributions. This leadership style encourages
collaboration, empowers followers, and promotes a sense of ownership and commitment to the team's goals.

4. Achievement-Oriented Leader
An achievement-oriented leader is someone who sets challenging goals for their followers and has high
expectations for their performance. They believe in their followers' capabilities and express confidence in their
ability to meet the set goals. This leadership style motivates individuals to strive for excellence, encourages
personal growth, and fosters a sense of accomplishment.
T HE HERSHEY -BLANCHARD SIT UAT IONAL LEADERSHIP
The Hersey-Blanchard Model suggests no single leadership style is better than another. Instead of
focusing on workplace factors, the model suggests leaders adjust their styles to those they lead
and their abilities. Under the model, successful leadership is both task- relevant and relationship-
relevant. It is an adaptive, flexible style, whereby leaders are encouraged to consider their
followers individuals or a team- then consider the factors that impact the work environment
before choosing how they will lead. This ensures they will meet their goals.

• The Hershey-Blanchard Model is also referred to as the Situational Leadership Model or Theory.
• The Hershey-Blanchard Model suggests no leadership style is better than another.
• The model suggests managers adapt their leadership style to tasks and relationships in the workplace.
• The model’s leadership styles are related directly to the different maturity categories of followers or employees.
THE VROOM-YETTON MODEL
The Vroom- Yetton model is designed to help you to identify the best decision-making approach and leadership style to take, based on

your current situation. It was originally develop by Victor Vroom and Philip Yetton in their 1973 book , “Leadership and Decision Making.”

No single decision-making process fits every scenario. Instead, Vroom Yetton offers a number of different processes and directs you

toward the best one for your situation. For example, if speed and decisiveness are required then it will likely point you toward an

autocratic process. If collaboration is what’s needed, then it will nudge you toward a more democratic process.

The following codes represent the five decision-making processes that are described by the model:

Autocratic (A1): You use the information that you already have to make the decision, without requiring any further input from your

team.

Autocratic (A2): You consult your team to obtain specific information that you need, and then you make the final decision.
Consultative (C1): You inform your team of the situation and ask for member’s opinions individually, but you don’t
bring the group together for a discussion. You make the final decision.
Consultative (C2): You get your team together for a group discussion about the issue and to seek their suggestions,
but you still make the final decision by yourself.

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Consultative (G2): You work with your team to reach a group consensus. Your role is mostly facilitative, and you help
team members to reach a decision that they all agree on.

In general, a consultative or collaboration style is most appropriate when:

• You need information from others to solve a problem.
• The problem can’t be easily define.
• Team members buy in to the decision is important.
• You have enough time available to manage a group decision.

An autocratic style is most appropriate when:

• You have greater expertise on the subject than others.
• You are confident about acting alone.
• The team will accept your decision.
• There is a little time available
THE MUCZYK-REIMANN MODEL
This model was developed by Jan P. Muczyk and Bernard C. Reimann, and it suggests that “participation” behavior is concerned with the

degree to which subordinates are allowed to be involved in decision making. It is separated from “ direction” which is viewed as the degree of

supervisor exercised in the execution of the tasks associated with carrying out the decision.

Muczyk and Reimann propose that leaders should be allowed to adapt to different situation. This paves the way for delegation which covers

decision making and execution.

To make the delagation effective, four leadership styles are considered:

1. The directive autocrat. The leader makes decision unilaterally and closely supervises the activities of subordinates.

2. The permissive autocrat. The leader makes decision unilaterally but allows subordinates a great deal of latitude in execution.

3. The directive democrat. This leader wants full participation but closely supervises subordinate activity.