Chapter -6

Leading
Learning Objectives
After studying this chapter, you should be able to:

Describe the nature of lcadership and relate leadership to management.

Dscuss and evaluate the two generic approaches to leadership.

Identify and describe the major situational approaches to leadership.

Identify and describe three related approaches to leadership.

Describe three emerging approaches to leadership.

Discuss political behavior in organizat ions and how it can be managed.

The Meaning of Leadership

Leadership is both a process and a property. As a process -focusing on what leaders actually do
lcadership is the use of noncoercive influence to shape the group's or organization's goals. motivate
behavior toward the achievement of those goals and help define group or organizational culture. As a
property, leadership is a set of characteristics attributed to individuals who are perceived to be leaders.
Thus leaders are (1) People who can influence the behaviors of others without having to rely on force. Or
(2) People who mothers accept as leaders.

Definition

As a process, the use of noncoercive influence to shape the group's or organization's goals, motivate
behavior toward the achievement of those goals and help define group or organizational cuture; as a
property, the set of characterist ics attributed to individuals who are perceived to be leaders. (R.Griffin).
people so that they will strive
Leadership is defined as influence, that is, the art or process of influencing
and enthusiastically toward the achievement of group goals. (H. Koontz).
willingly
which the leader seeks the voluntary participation of
Leadership is "a social in fluence process in

an to reach organizational objectives." (Kreitner)

subordinates in effort

The Nature of Leadership

from, management. In fact "Leadership"" and
power from and is similar to, yet distinct
Leadership derives
but there can be
"Managership'" are different. There can be leader of completely unorganized groups,
but a leader
can be said that a manager is necessarily a leader
managers only of organized groups. Thus
it
may not be a manager.
is one of the keys to being an
Leadership is managing. The ability to lead effectively
essential for
and lead a group to achieve objectives.
effective manager because she/he has to combine resources
By understanding motivation, one can appreciate
are closely interconnected.
Leadership and motivation
leader can encourage or dampen workers
why they act as they do. A
better what people want and
or unfavorable working environment in the organization.
motivat ion by creating a favorable
In other words, it is the willingness
of people to follow a
The essence of leadership is followership. they see as providing
Morcover, people tend to follow those
whom
person that makes that person a leader.
desires, needs and wants.
a means of achieving their own Group
involves an unequal distribution
of power between leaders and group members.
Leadership the leader will
group activities in a number of ways. Still

members are not powerless, they can shape

the group members.
usually have more power
than
leaders can influence workers
behavior in a number of ways. In fact,
Leaders can influence the follower's
either to do ill or well for the
company. Leaders
ethics and values from their leaders.
about values. Followers learn
Leadership is to be concerned for leaders to make
can reinforce ideals. It is very important
are the real teachers of ethics and they
if they are not
hypothetically.
positive statements of ethics
Leadershipand
Management
From different it should be clear that
definitions,
the same. A person leadershinand management are related, but they
can be a manager,, a are not
leader, both, or neither.
Organizat ions need both management and
leadership if thev are to be effective.
create change, and managementis Leadership is necessary to
necessary to achieve orderly results.
leadership can produce orderly change, and
Management in conjunction Wtn
leadership in conjunction with management can keep the
organzation properly aligned with its
environment. Indeed, perhaps part of
compensation has soared the reason why executive
recent years is the belief that managenent and leadership
critical but rare skills reflect a
combination that can lead to
organizational success.
Table 7.l: Kotter's Distinctions betwveen
Management and Leadership
DISTINCTIONS BETWEEN MANAGEMENT AND LEADERSHIP
Management nd leadership are related, but distinct, cons
tructs, Managers and leaders di ferin how they
mtionale for achieving the agenda,
create an agamda, developa
and execute plans, and in the types outcomes they achiee.

of
Actlvity
Management
Creating an agenda Leadership
Planning and Budpeting. Estabshing detaded steps
and Establishng Direction. Developing a vision of
timetables for achieving needed resuhs, the future, often the distant future, and strategies
allocating the re sources necessary to make
for producing the changes needed to achieve
those needed results happen
that vision
Developing a human
Organiang and Stathng Establishing some structure for
network for achievng Aigning People Communicating the directhon by
accompleshung plan requirements, statfing that structure
the agenda words and deeds everyone whose
wth indiduals, cooperation

to0
dele gating responsbilty and authoity ma be needed 1o influence the
for creation of
carying out the plan, proNIding poboes and
teams and coalitiornsthat understand the visons
procedures to help Quide peope, and creaing and strategies and accept theirvaldity
methodsor systems to monitor implementation
Executing plans Contraling and Problem Sdwng Monitoring results versus Mooivaing and Inspining Energizing people to
planning in some detad, identitying deviations, and then Overcome major polrtical bureaucratic, and
plannng and organzing to sove these problems resource barners by satistying very basc
but often unfulfilled, human needs
Outcomes Produces a degree of predictabilityand order and has Produces change, often to a dramatic degree.
the potential to produce consistently major results
and has the potential to produce extremely useful
expected by vanious stakeholders tfor
tfo example. change (tor example new products that
s
customers
for custoners aways being on time:, for stockholders want, new approaches to labor relations
being on tbudget) that help make a fim more competNe)
Sourca: Reprintedwth permvmon of The Fe Pres don of Sinon B SchusterAdult Aublahng Gnoup hem A Farre Meaene
Kr Copyrl Change How lderahp Dafars tom by
far
P
1990 John Kotec Ine
Joh
P

Leadershipand Power
To fully understand leadership, it is necessary to understand power. Power is the ability to affect the
behavior of others. One can have power without actually using
it. For example, a football coach has the
power to bench a player who is not performing up to par. The
coach seldom has to use this power because
players recognize that the power exists and work hard to kcep their starting positions. In organizational
settings, there are usually five kinds of power: legitimate,
reward, coercive,referent, and expert power.

Legitimate Power: Legitimate (legal) power is achieved when a person's superior position alone
prompts another person to a desired manner. This type
act in of power closely parallels formal authority.
Parents, teachers, and managers who demand obedience by virtue of their
religious leaders,
superior
social positioned attempting to exercise legitimate power:
Trying to control others solely by directing them and on
the basis of the power associated with
one's position simply will not work first, because
managers are always dependent on some
people over whom they have no formal authority, and second, because virtually no one in
modern organizations will passively accept and
completely obey a constant stream of orders
from someone justbecause he or she is the "boss.

2
One might reasonably
years. conclude that legitimate
power has been eroded
by its frequent abuse
through the
Reward Power:
One's ability to grant
key to reward power. rewards to those
who comply with a
and promotions to Management'sreward power can be command or request is the
job performance. strengthened by linking pay
power. Sought-after expressions raises, merit pay,
of friendship or trust also enhance reward
Coercive Power: Rooted in fear, Coercive (forced) power
the capabilityto force is based on
compliance threatened or actual
by mcans of psychological, punishment
emotional, or physical threat.
Referent Power: Comparcd with legitimate,
and reward, and coercive
grounded in
objective facts of power, which are relatively
organizational life, referent concrete
identification, imitat ion, loyalty, or charisma. Followers may power is abstract. It is based on
some way with a leader, who may be react favorably
because they identify in
like them in personality,
situations, followers might choose to background, or attitudes. In
other
imitate a leader with referent
cloths, working the same hours, or power by warning the same
kind of
espousing the same
take the formofcharisma, an management philosophy. Referent power
intangible attribute of the leader that inspires may also
loyalty and
managermight have referent powcr, but it is enthusiasm.Thus a
more likely to be associatcd with leadership.
Expert Power: Expert power is
derived from the possession of
knows how to interact with an eccentric informat ion or expertise. A manager
but important customer, a who
scientist who is capable of
important technical breakthrough that no achieving an
other company has dreamed of, and an administrative
who knows how to unravel bureaucratic red assistant
tape all have expert power
over anyone who needs that
information. The more important the information
and the fewer the people who have
access to it, the
greater is the degree of export power possesscd by any
one individual. In general, people who are both
leaders and managerstend to have a
lot of expert power.

Theories of Leadership

Leadership is a complex and multifaceted concept in management, and various theories have been
proposed to explain different aspects of leadership cffectiveness. Here are some prominent theories of
leadership:

1. Trait Theory: During most of recorded history the prevailing

assumption was that leaders are bom
and not made. Leaders such as Alexander the Great, Napoleon
Bonaparte, and George Washington
were said to have been blessed with an inborn ability to lead. This so-called great-man approach to
leadership eventually gave way to trait theory. According to one observer,"under the influence of the
behavioristic school of psychological thought, the fact was accepted that leadership are not
traits

completely inborn but can also be acquired through learning and experience. Attention turned to the
search for universal traits possessed by leaders. "
As the popularity of the trait approach mushroomed during the second quarter of the twentieth
century, literally hundreds of physical, mental, and personality traits were said to be the key

determinants of successful leadership. Unfortunately, few theorists agreed on the most important traits
of a good leader. The predictive value of trait theory was severely limited because traits tend to be a
chicken-and-egg proposition: Was George Washington a good leader because he had self-confidence,

or did he have self-confidence because he was thrust into a leadership role at a young age? In spite of
inherent problems, trait profiles provide a useful framework for examining what it takes to be a good
leader.

An Early Trait Profile. Not until 1948 was a comprehensive review of competing trait theories

conducted. After comparing more than one hundred studies of leader traits and characteristics, the
reviewer uncovered moderate agreement on only five traits. In the reviewer's words, "the average

person who occupies a position of leadership exceeds the average member of his group in the

3
 following respects: (1) intelligence, (2) scholarship, (3) dependability in exercising responsibities,
(4)activity and social participation, and (5) socioeconomic status."

Renewed Interest in Leader Traits. Interest in the trait anproach to leadership has been stirred

recently on two different fronts. First, James M. Kouzes and Barry Z. Posner surveyed over
7,500 managers from across the United States during the 1980s to determine the traits they admired in

Superior leaders. Honesty was selected by 87 percent of the respondents, easily outdistancing
competent (74 percent), forward-looking (67 percent), inspiring (6i percent), and intelligent (26
percent). This sequence could be a positive sign, from the standpoint of business ethics.

A second source of renewed interest in leadership traits is the ongoing debate about female versus
male leadership traits. In an often-cited survey by Judy B. Rosener, female leaders were found to be
better at sharing power and information than were their male counterparts." Critics have chided
Rosener for reinforcing this traditional feminine stereotype.

2. Behavioral Theory: Behavioral theories of leadership focus on the actions and behaviors of leaders
propose effective leadership is determined by the
rather than their innate traits. These theories that

actions leaders take rather than their inherent characteristics.

Two key frameworks within behavioral

theory are:
two dimensions of behavior: initiating structure (organizing
Ohio State Studies: Identified leader

work, defining roles) and consideration (buildingrelationships, showing support).

the concept of job-centered (task-oriented) and
University of Michigan Studies: Introduced
) leadership behaviors.
employee-centered (relationship-oriented
of leadership behaviors
3. Contingency Theory: Contingency theories propose that the effectiveness
is Fiedler's
or context. One of the most well-known contingency theories
depends on the situation
of a leader depends on the match between
Contingency Model, which suggests that the effectiveness
the is determined by leader-member
the leader's style and the favorability of situation. Favorability

Reference: Fiedler, F. E. (1964). A contingency model

relations, task structure, and position power.
in Experimental Social Psychology, 1, 149-190.
of leadership effectiveness.Advances

The following sections describe the three most well known situational theories.

Fiedler's Contingency Theory

there is no way for managers to lead.
best
contingency theory centers on the belief that
Fred E. Fiedler's
leadership style requirements for managers. The style that works in
Different situations create different

one environment may not work in another.

situational control. These elements are:
Fiedler looked at three elements that dictate a leader's
fairly unstructured, or somewhere in between? The
Task structure. Is the job highly structured, affects task structure.
is required of subordinates
spelling out in detail (favorable) of what dependability, and
to the amount of loyalty,
Leader/member relations. This element applies a manager
or her employees. In a favorable relationship,
support that a leader receives from his without any
and is able to reward and/or punish employees
has a highly formed task structure
the task structure is usually poorly formed, and the
problems. In an unfavorable relationship,

leader possesses limited authority.

a manager
measures the amount of power or authority
Positioning power. Positioning power rewarding, and
of directing,
given him or her for the purpose
perceives the organization has
punishing subordinates. or increasing (unfavorable) of the
depends on the taking away (favorable)
Positioning powers of managers
decision-making power of employees. Task-oriented
to whether they were relationship
oriented or task oriented.
Fiedler then rated managers as structured tasks, and
with good leader/member relationships,
managers tended to do better in situations but position
when the tasks were unstructured,
weakor strong position power. They
also did well
either to poor and the tasks were
leader/member relations were moderate
power was strong, as well as when the do better in all other situations.
managers, on the other hand,
unstructured. Relationship-oriented 4
Ahe
task-motivated style
leader
organization, experiences pride and
the while satisfactionin task
extend extrahelp accomplishment for his or her
forteamrelationship-motivated style leader seeks to
developmentin his or build interpersonal
Judging whether a her relations and
leadership organization.
style is
preferences for eadership. good or bad can be
Task-motivated
difficult. Each manager has
leaders are at their his or her own
successfully-suchas achieving best when their
oriented leaders are
new sales records or out teams perform
at their performing major
best when greater competitors. Relationship
images are established. customer satisfaction is
gained and
positive company
Hersey-Blanchard's Situational Model
The Hersey-Blanchard Model of Situational
direction (task Leadership, shown in Figure
behavior) and amount of 6-1, is based on the
socio-emotional
amountof
provide giventhe situation support (relationship
and the level ofmaturity of behavior) a leader must
Figure6-1 the followers.
Hersey-Blanchard's Model of Situational
Leadership.

3.HighEmployeeL.ow Task
2.HighEmploycetlighTask

4.LowEmploy eetLow TAsk

LLOVEmployectlighTask

Task behavior is the extent to which the leader engages in spelling out the duties and responsibilities to
an individual or group.This behavior includes telling people what to do, how to do it, when to do it, and
where to do
it.
In task behavior, the leader engages in one-way communication. Relationship behavior, on the other
hand, is the extent to which the leader engages in twvo-way or multi way communications. This behavior
includes listening to, facilitating, and supporting employees. And maturity is the willingness and ability of
a person to take responsibility for directing his own behavior. Employeestend to have
varying degrees of
maturity, depending on the specific tasks, functions, or objectives that they attempt to accomplish.
To determine the appropriate leadership style to use in a given situation, a leader must first determine the
maturity levels of his or her followers in relationship to the specific task. As employee maturity levels

increase, a leader should begin to reduce task behavior and increase relationship behavior until his or her

followers rcach moderate maturity levels. As the employees move into above-average maturity levels, the
leader should decrease not only task behavior but also relationship behavior.
Once maturity levels are identified, a manager can determine the appropriate leadership style: telling,

selling, participating, or delegating.

Telling. This style reflects high task/low relationship behavior (Sl). The leader provides clear
instructions and specific direction. Telling style is best matched with a low follower readiness
level.

Selling. This style reflects high task/high relationship behavior (S2). The leader encourages two
way communication and helps build confidence and motivation on the part of the employee,
although the leader still has responsibility and controls decision-making. Selling style is best
matched with a moderate follower readiness level.
behavior (S3). With this style. the
Participating. This style reflects high relationship/low task

leader and
followers share decision-making and no longer need or expect the relationship to be
Participating style is best matched with a moderate follower readiness leve.
directive.
low relationship/low task behavior($4). Delegating style is
Delegating. This style reflects
a particular task and are hoth
appropriate for leaders whose followers are ready to accomplish
 This is best matched with a high
competent and motivated to take full responsibility. style

follower readiness level.

House's Path-Gol Theory

The path-goal theory. developed by Robert House, is based on the expectancy theory of motivatton. A
manager"s job is to coach or guide workers to choose the best paths for reaching thet g0a15.
Based on the goal-setting theory. leaders engage in different types of leadership behaviors depending on
the nature anddemands of a particular situation.

A leader's behavior is acceptable to subordinates when viewed as a source of satisfaction. He or she is

motivational when need satisfaction is contingent on performance, and this leader facilitates, coaches, and
rewards effective per formance. Path-goal theory identifies several leadership styles:
Achievement-oriented. The leader sets challenging goals for followers,expects them topertorm
at their highest levels, and shows confidence in their abilities to meet these expectations. Ihis styie
isappropriate when followers lack job challenges.
• Directive. The leader lets followers know what is expected of them and tells them how to pertorm
their tasks. This styie is appropriate when followers hold ambiguous jobs.

Participative. The leader consults with followers and asks them for suggestions before making a
decision. This style is appropriate when followers are using improper procedures or are making

poor decisions.

Supportive. The
leader is friendly and approachable. He or she shows concern for the followers'
This is appropriate when followers lack confidence.
psychological well-being. style
can change their styles as situations
Path-goal theory assumes that leaders are flexible and that they
that moderate the leader behavior-outcome
require. This theory proposes two contingency variables
relationship:
are outside the of task structure, authority system,
Environment characteristics control followers,

determine the type of leader behavior required if follower

and work group. Environmental factors

outcomes are to be maximized.

characteristics are the focus of control, experience, and perceived ability. Personal
Follower
of subordinates determine how the environment and leader behavior are interpreted.
characteristics

Effective leaders clarify the path to help their followers achieve their goals, and make their journeys
and
by reducing roadblocks and pitfalls. Research demonstrates that employee performance
easier
compensate for shortcomings in either their employees
satisfaction are positively influenced when leaders

or the work settings.

theory focuses on how leaders motivate
their
Path-Goal Theory: Developed by Robert House, this
4. a derivative
leadership theory is the path-goal theory,
followers achieve goals. Another situational
to
from the assumption that effective
Path-goal theory gets its name
of expectancy motivation theory. perception of work
the subordinate's
leaders can enhance subordinate motivation by (1l) clarifying
with goal attainment, and (3) explaining
how goals and desired
goals, (2) linking meaningful rewards by providing clear goals
leaders should motivate their followers
rewards can be achieved. In short, motivation is essential to
believe that
reaching them. Path-goal theorists
and meaningful incentives for
leadership.
by "increasing the number and
effective
leaders can enhance motivation
According to two path-goal
theorists,

for work-goal attainment and making paths to these payoffs

kinds of personal payoffs to subordinates and and increasing the
the paths, reducing road blocks pitfalls,
easier to travel by clarifying of subordinates,
satisfaction enroute." Personal characteristics
opportunities for personal to situation. Thus,
from situation

environmental pressures, and

demands on subordinates will all vary
on four different leadership
managers need to rely contingently
path-goal proponents believe
that

styles: rules,
what expected of them and provide specific guidance, schedules,
Directive: Tell people
is

regulations, and
standards.
6
 Supportive: Treat
subordinates as equals
well-being. in a friendly manner while
striving to
Participative: Consult with improvetheir
those suggestions subordinates to seek their
when making suggestions and then seriously
decisions. consider
Achievement-oriented: Set
challenging goals,
improvement while maintaining a emphasize excellence,
high degree and seek continuous
challenges in a responsible of confidence that subordinates
will meet
manner." difficult
The assumption that
managers can and do shift
theory apartfrom Fiedler's situationally from style to
style clearly sets
model. Recall that Fiedler claims path-goal
basicleadership managerscannot and do not
styles. change their
Reference: House, R. (1971).A path-goal theory of
J.
leader effectiveness. Administrative
Quarterly, 16(3), 321-339. Science
5. Transformational
Leadership: Transformational
leadership focuses on inspiring
followers to achieve beyond and motivating
their self-interests and expectations. Transformational
exhibit charisma, intellectual leaders often
stimulat ion, individualized
This leadership style is associated consideration, and inspirational motivation.
with higher follower
satisfaction, motivation, and
Reference:Bass, B. M.
(1985). Leadership and performance
performance.
beyond expectations. Free Press.
6. Transactional Leadership:
Transactional leadership is based on the
punishments for performance. Transactional leaders exchange of rewards and
set clear expectations, provide
for meeting goals, and use corrective contingent rewards
action when necessary. While not as
transformative as
transformational leadership, transactional lcadership can be
cffective in maintaining organizational
stability and achieving short-term goals. Reference: Burns, J. M.
7. Servant Leadership: Servant leadership emphasizes
(1978). Leadership. Harper Row. &
serving others' needs, prioritizing the
developnent and well-being of followers, and fostering a collaborative
and inclusive organizational
culture. Servant leaders focus on empowering their team members and enabling
them to reach their
full potential. Reference:Greenleaf, R. K. (1970). The
servant as leader. Robert K. Greenleaf Center.

These theories provide different perspectives on leadership efectiveness and offer valuable insights for
managersand organizations in understanding and developing effective leadership practices.

Managers and leaders

The management task, as we have described it, involves the effective use of resources,including people,
to achieve desired results. Therefore, managers arce responsible for:
•Plant, equipmentand machinery
•Quality
Output volumes
• Costs
•Short-term and long-term planning
•Some investment decisions.
and production.
Many of these responsibilities relate to objects such as equipment, money physical

Others are related to administration-the processes of planning, organization, coordinating and controlling,
deliver output requirements and meet quality standards. As we have seen, these are all
in order to
of the organization as a whole.
essential, not only to the manager's job but also to the survival and success
However,they tell us little about the people side of management.
This is where leadership comes in. Leadership is to do with:
• Inspiring and motivating people
ion
their work and the organizat
•Making feel good about themselves,
them
involvement
• Encouraging their participation and

• Helping them to grow and develop.

a manager's most important resource
so these are clearly essential
People within the organization are too. But does it work the other
manager has to be an effective leader
activities. That means that an effective

7
way round?Is a good leader necessarily a good manager?
Case Study
Alicewas the national sales manager of a specialist publishing company.Her sales team loved her. The
atmospherein a room seemed to warm when she walked into it. She knevw all her team well their family -
situations, their aspirations, their strengths and weaknesses. Her own sales skills meant that if she
accompanied one of her team on a client visit, her presence guaranteed a major order.
Unfortunately Alice became ill and had totake extended leave. During her absence the ofice manager
took over some of Alice's dutics, in particular some of the paperwork. She found that:
• Alice had regularly authorized extra discount for new customers so that some sales had been made at
a loss.

•She had been in the habit of passing her team"'s expense claims for paymentwithout checking them.
•Some looked extremely doubtful.
•She had promised her team bigger and better earns when they became due
more economical models.
for renewal, even though

the company had taken a policy decision to move to

Questions:
a) Was Alice a good leader?
b) Was she a good manager? her team,
have had the personality and popularity of a leader. Shewas
interested in
Ans.: Alice appears to
which,
to them and took several actions,
supported and helped them. But she also made false promises
She seems to have been flawed as a leader but
thrcatened the business.
whilst increasing her popularity,
was definitely poor as a manager.