Chapter two & three of MOL.

722
Chapter two:- The contemporary Leadership Theories and
Models.
Introduction
• The contemporary leadership theory came in, because the classical
leadership approach theories (trait, behavioural and situational) were
criticized because of their determined and narrow perspectives which
failed to cover leadership realities.
• The classical approach assumes that there is a unidirectional personal
influence of leader on followers.
• Leaders are traditionally seen as having a particular personality with traits
different from those followers’. They are conceptualized as active players
in the process of leadership. In contrast, followers are regarded as passive
and reactive.
• Additionally leadership relations in the context of formal hierarchy
are usually understood as socially predetermined, that is, the leader
supervises and have power.
• So, it is not sufficient to explain leadership by just concentrating on
individual characteristics, or patterns of leadership behaviours that
might vary with situational differences.
Then, what makes contemporary approach in order to explain
leadership more appropriately?
1. The contemporary approach conceptualizes the process of
leadership as a process of interaction.
2. Behaviour is guided by followers who are shaped by past
experiences as well as by current perceptions and expectations.
3. Contemporary approach shows leadership context which is
regarded as complex, dynamic, and ambiguous. Hence diverse and
complex interconnectedness of environmental factors ( instead of
simple causalities), and emphasizes that change plays an important
role.
So, leadership is a sequence of multidirectional, reciprocal influence
process among many individuals at different levels, in different
subunits, and within executive teams(Yukl, 1994).
4. The focus is more on explaining leadership processes, describing
typical leadership behaviours, and presenting why given behaviour
occur in certain context.
Here after we will learn some of the contemporary leadership
theories.
 Leadership Models
1. Classical leadership models
1.1. Trait models – focus on what characteristics make for good
leaders
1.2. Behavioural models – what behaviours do good leaders
demonstrate
1.3. Contingency model –making followers with a right type of
leaders
2. Contemporary models
2.1. Transformational theory
2.2. Leader – follower exchange
2.3. Servant leadership
2.4. Authentic leadership
2.5. Value – based leadership
2.1. Transformational leadership:-
2.1.1. Overview of transformational leadership
 The current and most popular approach to leadership has become the focus
of study since 1980’s is the transformational leadership
 As Bryman (1992) stated, “transformational leadership is part of the new
leadership paradigm which gives more attention to the charismatic and
effective elements of leadership
 The popularity of TL. might be due to its emphasis on intrinsic motivation
and followers development, which fits the needs of today’s work group,
who want t be inspired and empowered to succeed in time of uncertainty
( Bass & Riggio, 2006).
• The concept of TL. was initially introduced by MacGregor Burns (1978).
According to Burns, TL. Can be seen when leaders & followers make each
other advance to a high level of motivation & morality. He then theorized it
as an exclusive style of leadership
• Later Bernard M. Bass (1985), enhanced Burns original idea & developed
Bass’s TL. Theory
• According to Bass TL. can be defined based on the impact it has on followers,
which in turn has on organizations. He suggested that TL. gets trust, respect,
& admiration from their followers.
• He introduced that the term transformational in place of transformation and
differentiated b/n TL. & transactional leadership, and how to measure them.
Definition:-
 As its name implies TL is the process that changes & transforms
people (Peter Northouse, 2016).
 It is concerned with emotions, values, ethics, standards, & long-term
goals. It includes assessing followers motives, satisfying their needs,
& treating them as full human beings
 It involves an exceptional form of influence that moves followers to
accomplish more than what is usually expected of them
 It is a process that often incorporates charismatic & visionary
leadership
• It is a form of leadership that raises the interests of followers &
create awareness to accept the purpose of the organization
• It is a kind of leadership that serves to change status quo, by moving
people beyond their self interest, having a compelling vision for the
future, helps to solve problems & focuses on what to accomplish
• It is a kind of leadership that helps followers by connecting them to
organizational sense of identity, and also being role model
• Helps workers to take ownership, responsibility and make them
understand their weaknesses and strengths
Transformational Leadership VS
Transactional Leadership.
• Burns has said that TL. and transactional leadership are not the
same; bur bass said they are different and said that transformational
leadership growth out of transactional leadership.
• Bass in contrast to burns, suggested that leadership can
simultaneously display both of them.
• Transactional leadership refers to the bulk of leadership model,
which focuses on the exchange that occurs b/n leaders & their
followers.
• The exchange of transactional leadership is very common & can be
observed at many levels throughout all types of organizations
• Whereas, Transformational leadership is a process whereby a person
engages with others & create a connection that raises the level of
motivation & morality on both the leader & follower. This type of
leader is attentive to the needs and motives of followers & tries to
help them reach their full potential
• TL. is preoccupied with purpose, values, moral & ethics , & works to
change org. culture by introducing new ideas; whereas,
transactional leadership follows traditional model, focuses on the
basic management functions, does not focus on personal
development and most of the time reactive
They both differ in their components
Components of Transformational Leadership
1. Idealized influence
 Influence is the most important of all qualities of leadership. Maxwell
said, “The true measure of leadership is influence, nothing more nothing
less.”
 It describes leaders who act as strong role model for follower
 Followers with such leaders want to do better
 Such leaders do the right things for they have very high standard of moral
& ethical conduct
 They are deeply respected by followers & great deal of respect
2. Inspirational Motivation.
o Here leaders inspire & motivate followers
o Leaders challenge followers with high expectations to fulfill and
show them enthusiasm and optimism
o They create atmosphere of commitment to shared vision and goals
o Help followers to have a sense of purpose and also engage them
o The process helps to create team spirit
3. Intellectual Stimulation
 This component deals with stimulating followers’ analytical skills &
problem solving ability
 It is leader’s ability to make others think about new ways to perform
work, to look at work, to be creative in their own problem solving
methods
 When issues are not understandable, leaders help followers to re-
frame them
 Help them to look at problems from different angles
 Encourage non-traditional way of thinking
4. Individual Consideration
 Every individual is different because of many reasons.
 So, leaders must understand the differences , their needs,
aspirations & abilities and act accordingly. Give also attention to
their levels
 Teach, coach & develop them
 Listen attentively to other’s concerns
 Follow two-way communication
Components of Transactional Leadership
1. Contingent Rewards
 Transactional leadership motivates followers to perform by
promising rewards
 It is an exchange process b/n leaders & followers in which followers
put effort to perform in exchange for reward
 The leader tries to get agreement from followers on what must be
done and what the payoffs will be
2. Management By Exception (MBE).
• It is leadership that involves corrective criticism, negative feedback,
and negative reinforcement
• MBE takes two forms:- Active and Passive
• A leader using the active form of MBE watches followers closely for
mistakes or rule violation and then takes corrective actions.
• A leader using the passive form intervenes only after standards are
not met or problems have risen
Reflection exercise.
1. Distinguish the difference between transformational leadership
and transactional leadership.
2. Explain the two components of transactional leadership.
2.1.2. Transformational Leadership and
organizational Performance.
• Leaders are always there to move people towards organizational performance as
planned
• Leaders expect from followers competent performance , but other leaders
inspire extraordinary effort and outcomes
• The answer to this is that the transformational leadership makes the difference
• Anyhow, there are many ways to think about leadership and performance.
Approaches to study performance is to focus on what leaders do themselves-----
a). What behaviours do they engage in and show the “right” kinds of
behaviours to effectively lead?
b). Does the leader look like and act like a leader?
c). Do they make correct decisions and morally right one?
• The other thing bout leader performance is to focus on the
outcomes of the leader’s and followers, group, team, unit, or
organization as a whole.
• Such performances need to have strategies to be used which needs
to be evaluated and measured
• So, the critical element is to understand the process how TL. Affects
followers and unit performance
• The performance from followers beyond expectations, because TL.
moves them to exceed what is expected, this can be done because -
• TL. Enhance the self-concept/self-efficacy of followers and encourage them.
That is encouraging to have confident and a groups shared belief to work
• The self-concept/ self-efficacy encourages followers’ personal and collective
identity with both the leader’s and the organizational goals and objectives
• This further enhances followers engagement in the challenges of the mission
as set forth by TL
• All helps followers identification with the successful leader and team, the
exciting experience and sense of empowerment associated with the leaders
• Other effects of TL. On performance are– coping with stress/crisis,
implementing change, creativity, and developing followers and also leaders
Reflection exercise
1. What do you understand by organizational performance? What
are the factors that lead to high performance?
2. How do you compare transformational leadership style and other
styles in bringing high performance of an organization?
2.1.3. The Measure of Transformational
Leadership.
• Bringing a new leader to a position is not enough. There should be a measuring
standard to check the effectiveness of a particular leader in a particular
organization
• One can ask; what positive impact did the leader register from year to year on
the organization?
• One measure could be the relationships he/she built with followers and others
• Did the leader tried cost effectiveness or not? Did he secure more funds?
• Have he/she empowered followers and helped them to improve their skills?
• It should also be seen in terms of reducing turnover and injecting new blood in
the organization.
• The effectiveness of implementing good governance
• The question of building team and making them cohesive
• How about being transparent, disseminating information on time and
exercising two-way communication.
• This can be done by transformational leadership and they are the
measures for them and others
other measure can be---
 How effective they have motivated employees for effective performance
through various means
 How far they worked close to the workers and inspired them
 Did he/she created trust
How far are employees delegated, and involved in decision making
and the result of these
 The creation of cultures where diversity of thoughts and practices
are promoted
 Have they created ethical climate
 Did they exercise freedom of choice for followers
2.1.4. Authentic leadership and The Emergence
of Pseudo-transformational leadership
Before we go to pseudo-transformational leadership it is helpful to give high light on
authentic transformational leadership and go to it.
 Authentic leadership represents one of the newest areas of leadership research
 It focuses on whether leadership is genuine and real
 Authentic leadership is about the authenticity of leaders & their leadership
 Because of crisis, people & companies face and witness they are longing for
leaders without deception that they can trust & who are honest & good to them.
 The authenticity of leaders come from being honest, genuineness, reliability,
integrity, and trustworthiness.
 It is a style in which the leader is true to himself or herself while leading
So, what is authentic transformational leadership?
 It is the leadership that care about public interests like community,
organizational or group not just their own
 They are willing to sacrifice their own interests for others, and they
can be trusted
 They are ethically matured and show moral reasoning
 Authentic leaders are virtuous, and shows greater strength and
that is goodness
• Some definitions of authentic transformational leadership can also be
seen in terms of intrapersonal perspective, interpersonal perspective, and
developmental perspective.
• Intrapersonal focuses closely on the leader & what goes within the leader.
It incorporates leader self knowledge, self regulation, and self concept.
• Interpersonal is a process of relations created by the leader & followers
together. It is a reciprocal process because leaders affect followers and vis-
versa
• Developmental is that can be nurtured in a leader, rather than as a fixed
trait. It develops in people over life time & can be triggered by major life
events
• The Pseudo-transformational leadership on the other hand are
leaders who talk about positive changes but allow their self-interest
to take precedence over followers needs.
• They are power mongers and abuse power, they run always for
prestige, closely control people , are after wealth and corrupted.
 Reflection exercise
1. Distinguish the difference between authentic transformational
leadership and pseudo-transformational leadership
2.2. Leader – Member Exchange Theory
• Leader – follower exchange theory conceptualize leadership as a
process that is centred on the interactions b/n leaders and
followers.
• LMX is a high degree of mutual influence & responsibility b/n
leaders and followers
• Such relationships leads to higher outcome
• High quality relationships are characterized by higher levels of
leaders support and guidance, higher levels of followers satisfaction
and performance, and lower levels of turn-over
• The first study of exchange theory was called vertical dyad linkage
(VDL).
• VDL is is the nature leaders formed with each of the followers
• So, the leader’s relationship to the work units as a whole was viewed as
a series of vertical dyads.
• In the VDL or the relationships two relationships ate found. The in-
group, & the out-group.
• In-group:- based on expanded and negotiated role responsibilities
(extra-roles)
• Out-group:- based on formal , contract and defined roles
• Within an organization work unit, followers become a part of the in-
group or the out-group based on how well they work with the
leader and how well the leader works with them.
• Personality and other personal characteristics are related to this
process
• In addition, membership in one group or the other is based on how
followers involve themselves their role and responsibilities with the
leader. Those interested with the leader become part od in-group,
and those not interested will be part of the out-group.
• Followers in the in-group receive more information, influence,
confidence, & concern from the leader. They are more dependable,
more highly involved, get higher ratings, and more communicative
than the out-group.
• The out-group are less compatible with the leader, and they come to
work, do the work, and go home.
2.3. Value-based leadership
2.3.1. Defining Value-based leadership
 Values are principles or standards that are considered to be important
or beneficial. On the basis of our values we evaluate aspects of our
existence, objects, behaviours, events, activities , intensions, goals, and
outcomes. There moral value that are right or wrong, good or bag. It is a
worth of something
 Leaders, workers, organizations, do have their own values
 Our main point here is that of a shared value. So, leaders must identify,
display, promote and reinforce this shared values that will inform and
support the vision, purpose and strategies of the organization they lead
• The value-based leadership philosophy focuses on what we are and how we
behave rather than what we do
• It describes behaviours that are rooted in ethical and moral foundations
• Value-based leadership is a philosophy that brings value to the organization,
without focusing on personal gain
• It is where leaders use their beliefs and values to inspire others to behave
and grow in certain ways
• It includes the leadership style where there is congruence of a leader’s
values with that of the organization’s values , the values of followers and
stakeholders. Prominent styles are---- servant, spiritual, authentic, ethical
and transformational
• Value-based leadership demonstrates integrity, selflessly serve and raise- up
others in genuine humility, show compassion by caring and developing their
potential
• It is a purpose-driven , aligning with organizational vision, mission and
values
• It is a type of leadership that demonstrates courage, and do the right thing,
in self-discipline and holding others accountable.
• Value-based leadership effectively engage, motivate and develop their
followers
• They establish a culture that enables transformational sustainable change,
resulting in effective execution, innovation and outstanding performance
• Value is important for leaders for being value-based, the value
determines our behaviour--- values precede ethics precede diversity and
precede performance
• It can bring excellent result over a long period of time and can deliver
predictable and sustainable results
• Value determines behaviour; behaviour determines performance. For
example, when leaders value integrity, it leads to the belief that brings
honesty and authentic that makes working with others effectively. Belief
to thought and helps to choose to do the right thing, tell truth. Our
choice leads to behaviour which determines specific performance that
brings significant results
To become value-based leadership—
 It requires openness and commitment to change. Success depends on process proven to
deliver extraordinary results. The processes are
1. Awareness:-
Honestly assessing your self and your organization in order to achieve maximum
effectiveness in your relationships and leadership
2. Alignment:-
Creating congruence b/n leadership values, words and actions, to realize unity of purpose
and to achieve stated goals and objectives
3. Accountability:-
Insuring personal and organizational values are reinforced and the key issue continually
addressed to establish a new corporate culture and achieve desired results
Theories and models of Value-based
Leadership
The followings are the models of value-based leadership, and students are
required to look for references and read them in detail:-
 Servant leadership
 Stewardship
 Self-sacrificial leadership
 Authentic transformational
 Contextual Leadership
 Shared leadership
 Spiritual leadership
 Ethical leadership
Reflection exercise
1. What is a value?
2. What do you mean by value-based leadership?
3. What is the importance of value-based leadership as compared to
other types of leadership?
2.4. Trust-culture leadership
Introduction:-
 One of the main tasks of leadership is building an organizational culture within which
leaders and followers can relate in a trusting way in accomplishing mutually valued goals
using agreed-upon processes
 Trust is essential because leaders and followers are not the same and the have different
backgrounds and experiences. So it is the trust b/n them that can tie them together to
perform
 Trust culture leadership, focuses on a specific value of trust for facilitating certain kinds of
interactions b/n the leader and subordinates
 As followers have an influencing role in the relationship situations , the focus on followers
is important
 So, the leader’s role is to create unity, a team from the different individuals , aligning them
with the core values and purposes of the group.
2.4.1.Definition of Culture.
• Culture is the life style of organizations that is its core values, beliefs,
systems, policies, and procedures, the way organizations do their businesses
(Roger Gill, 2011)
• Culture is said to be a manifestation of commonly held belief, behaviour,
and language
• It is a system in an organization that allows people to trust each other
enough to work together.
• Organizational or corporate culture includes elements like shared values,
beliefs, assumptions, patterns of relationships, and behaviours
• Building a culture that maintain and encourage trust is the drive of the
relations b/n leadership and culture
• It is a system of shared values and beliefs that engage team
members, org. structure, and control systems to produce
organizational behaviour, trust and security
• The organization’s culture is founded in core values and beliefs that
have evolved in a team over time
• Culture defines the nature and character of the organization. It
describes what an organization is all about. Culture is to people
what software is to computer---- the programming of people’s
thinking and behaving.
• Culture is a learned belief, values, norms, symbols, and traditions
that are common to group of people
• It is these shared qualities of group that make them unique
• Culture is dynamic and transmitted to others
• In short culture is the way of life, customs, and script of a group of
people .
The goal in trust-culture leadership
• It is to bring diversity into a harmonious union of org. purpose.
Unity is not uniformity, but unity from diversity is a goal
• A unifying culture based on shared values and accepted norms of
group member behaviour is the main duty of trust leadership and its
central purpose
• It allows people to retain their individuality, but commit to unifying
principles
2.4.2. The Impact of Culture on
Leadership
• Leadership and culture are intertwined
• Leadership refers to a person, culture to social system & shared values, and
leadership is closely associated with culture, in the frame of organizational
activities where leader-follower interact
• The role of leader is to help shape the environment in which the organization
operates to and define directions in line with the organizations values
• Leaders create culture, change it, and maintains.
• On the other hand culture determines a larger part of what leaders do and
how they do it. It also determines corporate practice and confirms that
practice. In actuality, leadership is a consequence of corporate culture and
culture is a result of leadership
Perspectives of Leader and Culture
a). Leadership as a creation or change of culture:-
 Leaders initially create organizational culture and give directions for the
shared ideas, beliefs and meanings. As time goes on lots of complexities
will come in and that questions the former culture

b). Leaders as maintaining and reproduction of culture:-

 Leaders are expected to reproduce and maintain culture
 Due to technological, economic, social and political changes, and of
course changes in employee behaviour, tastes of customers, etc. leaders
need to re-examine the current culture and adjust to fit the new situation
c). Culture as a frame and shaping leadership:-
 Culture influences leadership., this is because organizational culture
set limits for the kind of leadership behaviour to approve
 Org. culture sets standard for leaders to act. Obeying org. culture is
a must until it demands changes because of certain shortcomings
2.4.3. The Impact of Trust on Leadership
• Followers development, team success, and effective culture depends upon
trust
• Common values build trust and that trust is the foundation of cooperative
actions. The kind of leadership that grows out of the shared values only
flourish in a climate within which individuals can accept the uniqueness of
others without sanctioning all of their behaviour. Without trust, cultural
values can become disapproval, impeding individual and group progress
• Strategies used by leaders to create successful team culture are---value-
based staffing; using conflict constructively; modelling value in action;
telling stories about heroes; and creating traditions, ceremonies, and
rituals
• People want leaders who are credible. Credibility includes being honest, competent, and
inspiring and doing what you say you will do.

2.4.4. TRUST CULTURE LEADERSHIP BEHAVIOURS

 Team building, measuring and rewarding group success, and creating a culture through
vision
 Ensuring culture of trust – Leadership success is increasingly dependent on achieving
positive, trusting relations with others
 Prioritizing cultural values-related conducts/behaviours
 Creating and maintaining culture through visioning
 Sharing governance and strengthening it
 Measuring, appraising, and rewarding group performance
Reflection exercise
1. How an a leader builds trust culture in an organization?
2. What will the contribution of trust and trust culture to the
performance of an organization?
3. What factors help workers to trust their leaders?
2.5. Spiritual Leadership
 Spirit is a person’s mind or feelings as distinct from a body or soul.
 Spirit is about what we are. Our behaviour is guided by who we are
and why we think we are here in life. Our spiritual dimension
conditions our relationships with others and their relationships with
us
 The idea of spirit is central to life and to any activity, like leadership,
which spears to order and direct our human condition
2.5.1. The place of spirit in our work lives.
• The LPM also introduces another powerful drive, which is coming
not just from few people at the top, but also from ordinary workers.
It is a drive to become all that we can become within the confines of
the work unit
• Spiritual leadership is then a reflection of rising demand for
opportunity to use and sharpen more skills and abilities than just
those used on the assembly line or prescribed by restrictive position
descriptions
• The reason for this re-oriented leadership mind-set are many
• They reflect major changes in our social situations
Some of the changes are:-
- the rise of an increasingly diverse labour pool made up of
workers, each with different kinds of experience and striving
to honour different core value systems seems particularly strong
- changes in the way we do work are also significant. To day most
workers are knowledgeable workers, and this changed the
nature of work place
- so most workers expect the needed satisfaction than before
• Spiritual core lies at the heart of all human life. This spiritual core
expresses itself in beauty, aesthetics, and in our relationships with others
• Our spirituality includes our thought and feelings. It is a part of our over
all perception of the world
• Spirituality has some religious overtones, but it has to do primarily with
our inner or private being, our “life-force,” whether or not we see it in
religious terms.
• Some perceive spirituality to include a much broader range of experience,
while they see religion and faith as limiting the discussion to experiences
that arise In traditional institutions or ways of thinking
• Our spirituality is manifested in emotional or intellectual activities or
thoughts that transcend normal physical and biological wants or needs
• Spirituality can be defined in terms of its several conceptual components
• For some people spirituality is an inner certainty, a conviction that
certain principles or beliefs are intangible and may not rest on logical
proof yet are trustworthy and valuable. It is a belief in a higher spiritual
power with whom they have relationships
• This ideas has a strong religious overtones but also describes spirituality
in terms of universal values that some people believe guide their
everyday actions and by which others should judge their actions
• Others see spirituality as the capacity that separates human beings
from all other creatures. But, it is an inner awareness that makes
possible the integration of self and the world
• The secular and spiritual do not have to be separate and leaders do
not separate their inner self from the role they play. Instead, they
are indivisible. This is a holistic view of leadership action, one more
responsive to both our needs and our objective experience
• Others see spirituality as a source of personal meaning, values, and
life purpose. They define spirituality as any philosophy that lifts
people and gives meaning to their lives
• It is the ethics we follow and the degree to which we seek to do things for
the common good and to be a better person.
Generally the definition is:-
1. Spirituality is the process of reconciling the fact that our hearts and
minds and not just our bodies are critical to our work relationships. For
life is about spirit and we human carry only one spirit that manifests
itself in both life and livelihood
2. Spirituality concerns an individual’s awareness of connections between
human and supernatural phenomenon to provide faith explanations of
past and present experiences and, for some, to predict future
experiences
Pressures That Focus Our Spirit Self at
Work.
• Today the nature of work is changing. The change takes place in
knowledge and skill improvement to work, and there is a move from
individual to team work. So we no longer need mechanistic and
bureaucratic style to lead, but creative and innovative one and no
longer do we need mechanistic bureaucratic style to move with
• Several skills are required today, and we should not that power is
also shifting to supervisors demanding more cooperation and
coordination among all
• Workers today are demanding org. to connect personal, spiritual,
social, and environmental dimensions into the structure of work life
• Demographically there is a change. The more highly educated people
coming to work in organizations, leaders must focus on self-fulfilment
values
• It is logical that these values be carried out into the work place when they
enter the organizations
• They see work as merely another extension of their lives, another venue
to practice their own style of relationships, an additional arena where they
can receive, the mental, emotional, and spiritual stimulation they want
• Changes in family structure, work culture, and society, all combine to
move larger cultures towards different work related goals and methods of
interpersonal relations
 The Power of Spirit
• People are much more a bundle of skills and knowledge, as many leaders
assume. But people also come to work armed with spirit– a life giving principle
that is concerned also with higher moral qualities
• Today’s workers come to work wanting to take responsibility, accept challenges
of work, and make a contribution to org. success from their whole self not only
the skills and the knowledge they poses or the positions they will be given
• They want meaningful work and to make a legitimate contribution to the
betterment of themselves, others and their organization.
• Success requires innovation, creativity, commitment, vision and leadership.
Having these, people who work hard, are innovative, exciting, curious, ethical,
constantly learning, seek growth, and make life happy.
2.5.2. Defining Spiritual & its Impact on
Leadership
• For most people spirituality is only connected with religion. But
there a clear consistence b/n what spiritual values such as ---
integrity, honesty, and humility with leadership effectiveness such as
--- showing respect for others, demonstrating fair treatment,
expressing care and concern, and listening responsively
• As a result there are an increasing number of recent leadership
contributions which suggests the need to integrate spirituality with
leadership discourse.
• Some even suggest an overlap b/n authentic and servant leadership
approaches with spiritual leadership.
• Spiritual leadership is described as creating a vision wherein
organization members experiences a sense of calling in that their life
has meaning and makes a difference and establishing a
social/organizational culture based on altruistic love whereby
leaders and followers have genuine care, achieve collective purpose,
being ethical and compassionate, and respectful treatment of others
• Spiritual leadership theory is centred on organizational
transformation and development designed to create an intrinsically
motivated, learning organization
• Spiritual leadership involves the growth of spiritual well-being of the
leader and the follower through calling and membership, to create
vision, empower teams and foster higher productivity
• The spirit in human beings describes the life-giving principle within
us or in an event or thing
• Spirituality gives us personal awareness. It involves accepting
universal values that we come to believe and guide our everyday
actions and by which we judge our actions
• The spiritual leadership perspectives compels a holistic, integrated
approach
• A holistic leadership approach includes organizational services & programs
that address both the professional and the personal lives of stakeholders
• This helps organizations to focus their investments of people, money, time,
and other resources to get the maximum return possible
• Spiritual leadership focuses on the transformation of self, and the team.
These involves, the heart and the mined, spiritual values, intellectual
skills, inner certainty, strength, and happiness
• Spirituality is the source of personal meaning, values, life purposes, and
personal belief systems, and it reflects transcendent experiences
• However, our spiritual self is our most accurate self-definition. It shapes who we are
and what we do. It has to be a part of our work situation and the goals we seek from
our work.
• The spiritual (whole-soul) leadership perspective is the integration of the components
of the work done and the self into comprehensive system that fosters continuous
growth, improvement, self-awareness, and self-leadership
• Our soul is integrated with all parts of our life. We respond to the forces of our moral
and ethical values perhaps more than we guide our actions in terms of organization
set standards
• So, spirituality is an essential foundation for the quality of decisions we make. It
moderates and conditions our day-to-day life challenges and helps us to make right or
wrong choices. It shapes the opinions that we see as viable without being aware of.
Foundations of Spiritual Leadership
• Spiritual leadership today should centre on ideas of teaching our followers
correct principles and on the application of techniques that enable self-
governance.
• So, spiritual leadership creates culture where followers can function freely with
the leader and with their work group, and be subject to broad accountability
• It is redefining leader’s role in servant and steward terms. It asks leaders to
provide environments that both recognize and feed the spirit in us all while we
are directing work activity
• Leaders are first servants to those they lead. They are teachers, source of
knowledge and information, and standard setters more than givers of direction
or disciplinarians
• Spiritual leadership is shaped by the leader’s heart-felt values, by
his/her soul, which drives what he/she does.
• When leaders response to thier heart values, others will truly know
what they are and can more freely choose to follow. Only then the
team’s collective needs be fully met because, a leader’s core
philosophy about life and leadership is given substance and meaning
by the internal system of spiritual values focused on
• Together the heart and the mind, and our spiritual values and our
intellectual skills (our heart-thought), shape our behaviour, our
decisions, our actions, our relationships
2.5.3. Spiritual Leadership Model and
Behaviours
• To know how spiritual leadership ides are applied is to consider the
spiritual model development by Fairholm (1997). The model accepts
the fact that people come to work having all of their human
qualities , not just the skills , knowledge, and abilities needed at a
given time by the employing organization.
• Workers today always come to work equipped with and ready to use
their total life experiences. They have to use all of their skills.
• The infrastructure of spiritual leadership is based on ideas of moral
service, and the ethics of spiritual leadership is love
• Spiritual leadership rejects coercion to secure desired goals. It is
none interfering of human freedom and choice, though these
choices may entail some painful decisions and shifts in priorities.
• Spiritual leaders understand that all people have inalienable right of
free moral choice, and they know that the irrevocable low of the
harvest --- restore good for good. Evil for evil --- operates in our life.
 Model of the Spiritual Leadership Process
People
Leadership Tasks Spiritual Leadership Process The Prime Leadership Goal

Community

 
Vision Setting  
Continuous
A Higher Moral Wholeness Improvement
Servant Standard
Leadership
 

Stewardship
Task
 
Competemnce
 
The Leadership Task
• The three spiritual leadership tasks are;-
1. Vision setting
2. Servant leadership
3. Task competence
1. Vision setting:-
It requires a spiritual leader to create, and then share meaning and intensions via a vision
which comes from the leader’s individual sense of spirituality. Spiritual leaders develop
vision statements, or better yet vision stories, that foster development of cooperation,
mutual caring, and dedication to work
1. Task competence:-
The competence in techniques of teaching, trust and the particular work groups do are
essential to leadership
3. Servant leadership:-
 Leaders must serve others and what the spiritual leadership is all
about. They serve by making available to followers information
giving them time, attention, and resources to do their job
The Process of Technology
The four spiritual leadership process technologies are:- 1). a sense of
personal spiritual wholeness in both the leader and the led. 2). The
setting and honouring of high moral standards. 3. The notion of
stewardship, and, 4. Service and building community within the group
1. Wholeness:-
 Denotes the spiritual leader’s concern with the whole person, not
just specific skills they have that are useful to the current work
being done. Relationships with followers, therefore, are about what
the individual can now do, what they want to do, and what their
capacity is to prepare for this more inclusive work. There is a
particular power in this new leadership perspective, which
embraces a holistic conception of an organization both as an
economic enterprise and as a human system
2. High moral standard:-
 Spiritual leaders set and live by higher moral standards and ask others to share
that standard, thus communicating the leader’s intentions about raising the level
of human conduct. Including a moral dimension in our choices and actions helps
us think and act beyond narrowly defined business or political interest.
 Such leadership will give meaning and purpose to our working lives.
 Spiritual leaders set moral standards and define them on the theory that they
simply cannot compromise some ideals--- they must define them
 Spiritual leaders prefer to compete with some opposing ideas rather than
accommodating them, and they affirm the perspective of the spiritual over other
leadership models.
3. Stewardship:-
 It is significant that spiritual leaders understand their leadership is
held in trust for a temporary period and may not always be with
them
 Therefore, they function as stewards over the group’s resources as
they propose plans and programs, allowing followers an opportunity
to consent before the actions taken are finally adopted.
 Hence stewardship role, which forms a shred responsibility team, is
central to this perspective
 Stewardship connotes holding work resources in trust for a temporary
period. In a stewardship team, power is inherent in each steward to help
accomplish the stewardship team’s ends
Every steward has the same rights and is subject to identical limitations in
the exercise of self-direction, and every team process and procedure
enhances such shared governance and unity of purpose.
It is a relationship system based on mutual accountability, but that
accountability occurs only after the steward is allowed to fulfil the
responsibility and expend the resource allotted in his/her own way.
Stewardship includes the exercise of team work and individual free choice
4. Building Community
• Community building denotes the creation of harmony from often
diverse, sometimes opposing, organizational, human systems and
program functions.
• It is a job of making one from many. It involves generalizing deeply
held values, beliefs, and principles of action in ways that all
stakeholders will find acceptable and energizing
• Spiritual leadership recognizes the simultaneous need we all have to
be free to act in terms of our own reality and to be part of a similar
focused group.
Reflection exercise
1. What is spiritual leadership?
2. What is its contribution to manage diversity in organizations?
Chapter three:- Leadership Challenges in
the Contemporary World.
3.1. The major Leadership Challenges
3.1.1. Leadership challenges in Dealing with Complexities and Diverse Human Needs
 For us it is vey important to know the different challenges of leadership , and how to
cope up with these challenges
 Leaders must solve problems and try to avoid things that can cause problems. They
have to hold opportunities for better productivity. For this, leaders need to have
qualities to handle.
 They need to assess this qualities and know the strengths or weaknesses they posses
 Leaders have to act upon the results of the assessment, cultivate on the strength,
and try to overcome the weaknesses. In both cases they need to plan and implement
it
• It also needs support elements of an experience that enhances self
confidence and make sure about your strength, skills, and establishing
ways of thinking and acting
• A challenge can be a difficult task that tests your ability to do it as
required, or it can be something not currently available which you
have to do something to get to it, or it can be something that happens
due to imbalance which you need to put in a normal path
So, the question is; what do you mean by the challenges of leadership?
• Leadership challenges can be from external, Internal and due to
challenges arising from the leaders themselves
The External Challenges of Leadership
 As an organization is an open system it is directly affected by its external
environment for which leaders has to take precaution and these challenges may
include the followings:-
- The economic challenge which is due to the higher costs of running
an organization, inflation rates, unemployment, market competition
- Challenges of technological changes due to it progressive
development & advancement. Leaders must get ready to introduce
them and use them for quality and quantity of the product/service
- The Demographic challenge:- Leaders are challenged to adjust to the
change(age, birth, death, income, education, occupation). The
challenge is that leaders need to formulate their HR strategies
- The natural ecology from where organizations get their most
resources
- Criticism from the public, stakeholders, and customers
- Financial constraints and political pressures
The Internal Challenges of Leadership
- Internal org. environment includes its culture, climate, values, goals,
and manner of treating followers & customers. These system has to
be followed and put into function for organizational effectiveness.
Problems with all of them or part of the system is a challenge
• Insecurity of the organization in general
• When people are defensive rightly or wrongly
• When leaders lack decisiveness. This leads to lack of responsiveness
of duties on time which can be costly later on.
• Inability to deal with problems when they cope up later on
• Lack of being fair and objective
• Lack of being proactive and exercising reactivity
• Not exercising situational leadership
Other Challenges that Leaders likely to
face at work.
• Developing direction and strategy
• Creating a learning organization
• Making new organizational structure
• Building powerful teams
• Crafting culture of innovation
• Fostering diversity and inclusion
• Promoting partnership
• Improving work processes
• Streamlining
• Encouraging social responsibility
• Mobilizing knowledge
• Leading in networks
• Managing mergers
• Making major changes
*It is the quality of the leader to response to these challenges that
makes the difference between effective and non-effective leadership.
 Ethical Challenges of leadership --- organizations should have ethical
standards and properly practice it. As ethics is the system of moral
principle or rule of behaviour the ethical standards should govern and
influence the behaviours of leaders. This is to meet the public interest
, demands of customers and the expectations of stakeholders.
 Challenges of adding value --- organizations strive to develop and
grow. To achieve these they have to be a value-driven organizations. A
value-driven organization deliver strong profit growth, improve
customer satisfaction, and employee fulfilment. It is not easy, but it
requires the scarification of organizational leadership
3.1.2. Leadership Challenges in Mobilizing
Human Resource
This title will also encompass challenges stemming from the nature of the
leadership roles.
It is not enough to have people (employees) in the organization, but it is
important to mobilize them to achieve the objectives of the organization in
quality, quantity and on time; & play roles expected of them
• For this employees need supply of resources regularly, and other necessary
thing to do their jobs
• The challenges of leadership to mobilize the HR. is not easy as one could
think. There are many factors contributing it.
• Though there are many challenges, we will discuss the following major
ones.
• The challenges of having necessary human capital:- Human capital is the
knowledge, skills, and abilities of employees that have economic values. Here
leaders must make sure that strategic decisions must be linked to staffing org. &
how to mobilize them.
• Motivation:- Motivation is one important function of leaders, but it is the most
overlooked. Though people do have different needs and expectations, and what
motivates one does not motivate the other, leaders must have strategy to do it.
Because motivation is a force that energizes, directs and sustain a person’s effort.
• Goal setting:- Here it requires the participation of the followers in goal setting
which leads them to own it. The challenge is do they have the right
representative? Can leaders make goals that employees accept and see in it their
personal ends?
 Providing feedback:- Leaders do not give enough feedback &
employees do not ask for enough feedback. Feedback raises
employees performance , and leaders need to exercise it regularly. It
helps people to know their strengths and weaknesses and try to
adjust themselves which benefits the organization
 Achieving equal fairness:- It is foremost important for leaders to
be fair to all in all their treatments of employees. They should know
that people can assess how fairly org. treat them in their duties and
compare themselves with others. Leaders need to be careful in this
respect.
• Job satisfaction:- Is the degree to which employees feel positively or
negatively about their jobs. It is an attitude or emotional response
to one’s task as well as the physical and social conditions of the
work place. Facts about job satisfaction are:-
1. The work itself – responsibility, interest, and growth
2. Quality of leader – technical and social support
3. Relationships with co-workers – social harmony & respect
4 Pay – adequacy of pay and perceived equity and others
• Quality of work life:- Quality work life programs create a work place that enhances
employee well-being and satisfaction. These are:-
1. Adequate & Fair compensation
2. A safe & healthy environment
3. Jobs that develops human capacities
4. A chance for personal growth & security
5. A social environment that fosters personal identity, freedom from prejudice, a
sense of community, & upward mobility
6. The right of personal privacy, dissent, & due process
7. Help in personal leisure & family needs
8. Socially responsible organizational actions
Other leadership roles could be to see to the following challenges.
High performance system – Includes registering best results, maintain
motivation, maintain market share, continuous improvement and learning
Democratization:- it is getting input, information, opinions from
subordinates, entertaining different perspectives, transparent, keep
equity, etc.
Innovative network:- This includes a daily work exchange with workers
and partners; External interactions with customers, agencies and
community; Innovation collaboration; advice giving and taking from
experts and problem solving; Guiding career development of staff.
Global local paradox:- There is a big difference b/n global and local
leadership. Leaders need to be developed to fit in both as much as
possible. So the increasing complexities demands leaders to balance
leadership skills. This requires to think for long-term, innovate, think and
act globally, standardize products and services, improve collaboration,
initiative for growth.
Global Leadership requires “global mind-set.”
1. A leaders with a global mind-set understands the need for global
integration and local responsiveness and works to optimize this duality
2. A leader with a global mind-set does appreciation for diversity as well
as homogeneity and an openness to learn from everywhere.
3. Leaders with global mind-set involve cognitive skills to handle
complexity and be knowledgeable about world affairs to differentiate
views, and ability to merge ideas
4. Leaders with global mind-set also must have an ability to recognize
situations in which demands from both global and local elements are
compelling ----- with awareness of diversity across cultures.
Global Leadership requires Leadership agility:- In an organization, the
formal structure is put in place to control people, decisions, and actions.
But in today’s fast-changing organizational environment,
responsiveness, that is quickness, agility, the ability to adapt to
changing demands are more vital to the survival of organizations.
• So, leaders must have determination to leverage its employees and assets fully
to make the organization more agile and be competitive. It requires also to be
effective in global situations which requires a capacity to act on what you know,
how to mould or shape your behaviour so that you can simultaneously be
effective and appropriate in a setting without losing who you are in the process.
Leadership requires employee engagement:-
- Employee engagement is intellectual and emotional commitment of
employees to their organization and efforts they show in their work.
- Employee engagement is the will and willingly, and even eagerly, giving of
their discretionary effort, over and above doing what they have to do, giving their
best, displaying creativity, and using their initiative.
• Engagement is a heightened emotional connection that the
employee feels for his/her organization, that, in turn, influence
him/her to apply additional discretionary effort to work
• Engagement involves investing the hands (changes required in skill
and competence), head (thinking), and heart (feelings and
emotions) in active, full work performance.
Some Common Concepts of Employee
Engagement:-
• Positive attitudes towards, and commitment to, work, colleagues,
the organization and its leaders.
• Attentiveness to, enthusiasm for, and absorption in work.
• The motivation to work ---- to do what needs to be done (and
more).
Reflection exercise
1. What are the main challenges that leaders face today?
2. Suggest how they can cope with them and make their
organizations remain competitive
3. Leading people is not easy. If so, how can leaders effectively
mobilize their human resources to accomplish organizational
objectives as expected?
3.2. Key Commitments to Overcome
Leadership Challenges.
The greatest rewards come only from the greatest commitment (Arlene
Blum, 1980). The dynamic leadership processes should be through the
five fundamental practices that enable leaders to get extraordinary
things done are explained by Posner and Kouzes, (2016), who interviewed
leaders to describe their personal best. This leadership model are when
leaders are at their best and be able to realize them. They reflect the
characteristics of leaders and exemplary leadership styles. They are:-
1. Challenging the process:-
 Search out challenging opportunities to change, grow, innovate , and
improve
 Experiment, take risk, and learn from the accompanying mistakes
 If you have not endured the most difficult, you cannot become the
most successful

 The challenge is how to overcome uncertainty and fear in order to

achieve the best
 Everybody can make a difference if he/she dare to step out to seize
the opportunity and take the initiative
 The challenges enables org. leadership to create extraordinary results
 Challenges help to be open to improve organizations and have to be result-
oriented
 Leaders can do this through experiment using personal qualities, calculated and
accepted risk
2. Inspiring a Shared Vision:-
To be able to describe the image of the future, you need to know the needs and
wants of others
 In leadership what is important is to know and make it known what we are
trying to do or build. It is about looking for a better future
 Individuals need to build their careers for the coming years
To do these and overcome the challenges that come with changes,
leaders must do the followings
 Be more mindful in the present first
 Stop and think, look around and listen
 Give attention to workers, customers and stakeholders
 Then explore future possibilities
Concerning the shared vision further
leaders---need to know.
 Journey to the future is uncertain & unknown
 So leaders need a compelling vision which is a magnetic course for
attractive future
 Vision adds meaning to every day life in an organization
 The vision must appeal to the values, interests, hope & and dreams
of people
 Vision must be realized with the cooperation and dedication with
others
3. Enabling Others to Act
Strengthen others by giving power away, providing choice,
developing competence, assigning critical tasks, and offering visible
support
Most importantly, the level of trust followers had in their leadership
determines the amount of leader influence followers accept
Leaders need to listen to people and treat tem respectfully
They have to create an environment where followers can feel good
about their work and how it contributes to the greater community
Foster collaboration by building trust and facilitating relationships
 4. Encouraging the Heart
Recognize individual contribution to the success of every project
Celebrate team accomplishment regularly
Recognizing contributions by showing appreciation for individual excellence
Leaders must be more open and caring
Leaders must express more affection
Leaders must demonstrate more passion
Leaders must be more positive and grateful, encouragers for high performance
Leaders must have positive emotions which opens our hearts and minds to be
more receptive and more creative
 5. Modeling the Way
o Set the example by behaving in ways that are consistent with shared values
o Achieve small wins that promote consistent progress and build
commitment
o To model the way, leaders need to be clear about their own values and
philosophy
o They need to find their own voice and express it to others
o Exemplary leaders set a personal example for others by their own
behaviours
o The have to follow their promises and commitment and affirm the common
values they share with others
o As a leader, it is important first to define values and principles
o It is important to have them because it gives credibility
o People admire those who believe strongly In something, and are
willing to stand up for their beliefs
o In an organization where employees strongly believe their leaders
follow through on promises and demonstrate the values to more
performance and then profitability
o Leaders must clarify, reaffirm it, and share it
How to affirm shared values
• Provide people with a common language
• Intensify commitment, enthusiasm, and drive
• Decrease stress and tension
• Increase creativity
• Encourage team work
• Teach others to model the values
Values of high success is critical and leaders to greatness. They show
strong organizational culture. They are:-
• High performance standards
• A caring attitude about people
• A sense of uniqueness and pride
How Can You Cope With Challenges?
 Be proactive not reactive
 Be innovative and creative
 Look for opportunities to grasp for the good of the organization
 Always look for the common ground
 Seek collaboration and team work
Be consistent and objective
 Face conflict and solve objectively and on time
Listen to people and response in accordance
 Use 360-degree feedback
• Look at what is going on around you
• Reach out for help in facing internal challenges
• Create mechanism to revisit your vision
• Share the burden
• Seek for people with whom you can discuss and share the realities
• Make sure you have personal time
Future Trends of Leadership
This is an addition to help you as a take of to read more about
leadership in the future. Some important trends to be taken into
account are as follows:-
1. Flexibility and agility:-
In order to succeed in the future, leaders will need to become more
agile, responsive and develop ability to adapt to different needs
generated by changes in the work place. They need to be open to
cultural and technological changes that will impact operations.
2. Going Global:-
 Business globalization is no longer a mere idea, but is a fact. So,
leaders operating outside the home market or part of a team that
stretches across borders require a host of specific skills ----- copying
with ambiguity, decision making, etc
3. Competencies:- Building competencies is a non stopping fact for
every change requires or demands core skills. These skills are
networking, communication, setting goals, and task delegation
4. Sustainability:-
Besides agility and talent, the most important value for future
leadership will be sustainability. Here leaders must see long-term
consequences of their decision making to work and environment,
health and safety, and social responsibilities
5. Collective Leadership:-
6. Generation difference management:-
There is a generation transformation taking place and leaders must
have new strategies to make most from the unique qualities of the
generation.
Reflection exercise
1. What are they commitments required to overcome leadership
challenges and when leaders are at their best?
2. Discuss two of them briefly
I WISH YOU SUCCESS AND HAPPY NEW YEAR

FOLLOW HEALTH PROFESSIONAL ADVISE AND GUIDE LINES GIVEN TO

PROTECT YOURSELF AND OTHERS FROM COVID 19.

FEKADU KANNO (PhD).

2020/2021 ACADEMIC YEAR.