“LEADERSHIP”

INSTRUCTOR : SHEENA PITAFI

Business Studies Department, BUKC 1

MANAGERS AS LEADERS

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  To define leader and
leadership.
 To compare early
theories of leadership.
 To describe the three
major contingency
theories of leadership.
 To describe
contemporary views
of leadership.
 To discuss
LEARNING contemporary issues
OBJECTIVES affecting leadership.

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 Leader – Someone who
can influence others and
who has managerial
authority.
Leadership – What
leaders do; the process
of influencing a group
LEADERS AND to achieve goals.
LEADERSHIP
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 o Ideally, all
managers should be
leaders.
o Although groups
may have informal
leaders who
emerge, those are
LEADERS AND not the leaders
LEADERSHIP we’re studying.
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 1) Leadership Trait
Theories;
2) Leadership
Behavior Theories;
3) Contingency
Theories of
Leadership;
4) Contemporary
LEADERSHIP View of
THEORIES Leadership.
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  People have been
interested in
leadership since they
started coming
together in groups to
accomplish goals.
 In the twentieth
century, early
leadership theories
focused on:
 The leader (leadership trait
theories) and

EARLY  how the leader interacted

with his or her group

LEADERSHIP members (leadership

behavior theories).

THEORIES
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  Research focused on
identifying personal
characteristics that
differentiated leaders from
non-leaders.
 Common traits included
physical stature, appearance,
social class, emotional
stability, fluency of speech,
and sociability.
 This approach, however, was
unsuccessful because it
proved impossible to identify
TRAIT a set of traits that would
THEORIES always differentiate a leader
(the person) from a non-
(1920S-30S) leader.
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  Later research on
the leadership (the
process of leading,
not the person)
identified seven
traits associated
with successful
leadership:
 Drive, the desire to
lead, honesty and
integrity, self-
confidence,
TRAIT THEORIES intelligence, job-
relevant knowledge,
(1920S-30S) and extraversion.
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SEVEN TRAITS ASSOCIATED WITH
LEADERSHIP

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  Researchers hoped that
the behavioral theories
would provide more
definitive answers about
the nature of leadership
than did the trait
theories.
 The four main leader
behavior studies are:
1) The University of Iowa Study;
LEADERSHIP 2) The Ohio State Study;
BEHAVIOR 3) The University of Michigan
Study;
THEORIES 4) The Managerial Grid.
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  Identified three
leadership styles:
1) Autocratic style: centralized
authority, low participation.
2) Democratic style: involvement,
high participation, feedback.
3) Laissez faire style: hands-off
management (policy of leaving
things to take their own course,
without interfering).
 Research findings:
mixed results
 No specific style was
1. UNIVERSITY consistently better for producing
OF IOWA better performance.
STUDIES (KURT  Employees were more satisfied
under a democratic leader than
LEWIN) an autocratic leader.
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  Identified two dimensions of leader
behavior:
 Initiating Structure: The role of
the leader in defining his or her
role and the roles of group
members.
 Consideration: The leader’s
mutual trust and respect for group
members’ ideas and feelings.
 Research findings: mixed
results
 High-high leaders generally, but
not always, achieved high group
task performance and satisfaction.
2. OHIO STATE  Evidence indicated that
situational factors appeared to
STUDIES strongly influence leadership
effectiveness.

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  Identified two dimensions
of leader behavior:
 Employee oriented:
emphasizing personal
relationships.
 Production oriented:
emphasizing task
accomplishment.
Research findings:
 Leaders who are
3. UNIVERSITY employee oriented are
strongly associated with
OF MICHIGAN high group productivity
STUDIES and high job satisfaction.
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  A two-dimensional grid
appraising leadership
styles:
 Concern for people -
measured leader’s concern for
subordinates (low to high).
 Concern for production -
measured leader’s concern for
getting job done (low to high).
 Research Findings:
 Leaders performed best with a
4. THE 9,9 style (high concern for
MANAGERIAL production and high concern
for people).
GRID
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  Places
managerial
styles in five
categories:
1) Task management;
2) Impoverished
management;
3) Middle-of-the-road
management;
THE 4) Country club
management;
MANAGERIAL 5) Team management.
GRID
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CONTINGENCY
THEORIES OF 1) The Fiedler Model;
LEADERSHIP
2) Hersey and
Blanchard’s
Situational
Leadership Theory;
3) Vroom and Yetton’s
Leader
Participation
Model;
4) Path-Goal Model.

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  Proposes that effective group
performance depends upon
the proper match between
the leader’s style of
interacting with followers
and the degree to which the
situation allows the leader to
control and influence.
 Assumptions:
 A certain leadership style should be
most effective in different types of
situations.
 Leaders do not readily change
1. THE FIEDLER leadership styles.
MODEL  Matching the leader to the situation
or changing the situation to make it
favorable to the leader is required.

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  Least-preferred co-worker
(LPC) questionnaire
 Determines leadership style by
measuring responses to 18 pairs of
contrasting adjectives.
 High score: a relationship-oriented
leadership style;
 Low score: a task-oriented
leadership style.
 Situational factors in matching
leader to the situation:
1) Leader-member relations - the
degree of confidence, trust, and
respect employees had for their
leader;
2) Task structure - the degree to which

1. THE FIEDLER job assignments were formalized and

structured;

MODEL 3) Position power - the degree of

influence a leader had over activities
such as hiring, firing, discipline,
promotions, and salary increases.
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1. FIEDLER’S CONTINGENCY THEORY

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 Argues that successful
leadership is achieved by
selecting the right leadership
style which is contingent on the
level of the followers’ readiness.
 Acceptance: leadership
effectiveness depends on whether
followers accept or reject a leader.
 Readiness: the extent to which
followers have the ability and
willingness to accomplish a
specific task.
2. HERSEY AND Leaders must relinquish
BLANCHARD’S control over and contact with
SITUATIONAL followers as they become more
LEADERSHIP competent.
THEORY (SLT)
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2. HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP
THEORY (SLT)

 Four specific styles as:

1) Telling (high task–low relationship): The leader
defines roles and tells people what, how, when, and
where to do various tasks.
2) Selling (high task–high relationship): The leader
provides both directive and supportive behavior.
3) Participating (low task–high relationship): The leader
and followers share in decision making; the main role
of the leader is facilitating and communicating.
4) Delegating (low task–low relationship): The leader
provides little direction or support.
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3. LEADER PARTICIPATION MODEL (VROOM AND YETTON)

 Posits that leader behavior must be adjusted

to reflect the task structure - whether it is
routine, nonroutine, or in between - based
on a sequential set of rules (contingencies)
for determining the form and amount of
follower participation in decision making in
a given situation.

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3. LEADER PARTICIPATION MODEL CONTINGENCIES

 Decision significance;
 Importance of commitment;
 Leader expertise;
 Likelihood of commitment;
 Group support;
 Group expertise;
 Team competence.
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LEADERSHIP STYLES IN THE VROOM
LEADER PARTICIPATION MODEL
• Decide: Leader makes the decision alone and either announces or
sells it to group.
• Consult Individually: Leader presents the problem to group
members individually, gets their suggestions, and then makes the
decision.
• Consult Group: Leader presents the problem to group members in
a meeting, gets their suggestions, and then makes the decision.
• Facilitate: Leader presents the problem to the group in a meeting
and, acting as facilitator, defines the problem and the boundaries
within which a decision must be made.
• Delegate: Leader permits the group to make the decision within
prescribed limits.

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4. ROBERT HOUSE’S PATH-GOAL MODEL

 States that the leader’s job is to assist his or

her followers in attaining their goals and to
provide direction or support to ensure their
goals are compatible with organizational goals.
 House identified four leadership behaviors:
1) Directive leader;
2) Supportive leader;
3) Participative leader;
4) Achievement-oriented leader.
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4. ROBERT HOUSE’S PATH-GOAL MODEL

 Leaders assume different leadership styles at

different times depending on the situation:
a) Directive leader - Lets subordinates know what’s
expected of them, schedules work to be done, and
gives specific guidance on how to accomplish tasks;
b) Supportive leader - Shows concern for the needs of
followers and is friendly;
c) Participative leader - Consults with group members
and uses their suggestions before making a decision;
d) Achievement-oriented leader - Sets challenging goals
and expects followers to perform at their highest level.
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 Path-goal theory proposes two situationa
4. PATH-GOAL or contingency variables that moderate th
THEORY
leadership behavior–outcome relationship
Outside a
follower’s Control

Part of a follower’s
personal
characteristics

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CONTEMPORARY VIEWS OF LEADERSHIP

1) Leader–Member Exchange (LMX) Theory;

2) Transformational-Transactional Leadership;
3) Charismatic-Visionary Leadership;
4) Team Leadership.

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  The leadership theory that says leaders
create in-groups and out-groups and
those in the in-group will have higher
performance ratings, less turnover, and
greater job satisfaction.
 LMX theory suggests that early in the
relationship between a leader and a
given follower, a leader will implicitly
categorize a follower as an “in” or as an
“out.”
 That relationship tends to remain stable
over time.
 Leaders also encourage LMX by
rewarding those employees with whom
they want a closer linkage and punishing
1. LEADER– those with whom they do not.
MEMBER  For the LMX relationship to remain
EXCHANGE intact, however, both the leader and the
follower must “invest” in the
(LMX) THEORY relationship.

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  Transactional Leadership
 Leaders who lead primarily
by using social exchanges
(or transactions).
 Leaders who guide or
motivate their followers in
the direction of established
goals by clarifying role and
task requirements.
 Transformational
Leadership
 Leaders who inspire
followers to transcend their
own self-interests for the
good of the organization by
clarifying role and task
2. requirements.
TRANSFORMATIONAL-  Leaders who also can have
TRANSACTIONAL a profound and
extraordinary effect on
LEADERSHIP their followers.
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  Transformational
leadership develops
from transactional
leadership.
 Transformational
leadership
produces levels of
employee effort
and performance
that go beyond
TRANSFORMATIONA what would occur
L-TRANSACTIONAL with a transactional
LEADERSHIP approach alone.

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 3. CHARISMATIC-
VISIONARY
LEADERSHIP
 An enthusiastic, self-confident
leader whose personality and
actions influence people to behave
in certain ways.
 Characteristics of charismatic
leaders:
 Have a vision.
 Are able to articulate the vision.
 Are willing to take risks to achieve the vision.
 Are sensitive to the environment and follower
needs.
 Exhibit behaviors that are out of the ordinary.
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  Visionary Leadership
 A leader who creates and
articulates a realistic,
credible, and attractive
vision of the future that
improves upon the present
situation.
 Visionary leaders can:
 Explain the vision to others.
 Express the vision not just
verbally but through
CHARISMATIC- behavior.
VISIONARY  Extend or apply the vision to
different leadership contexts.
LEADERSHIP
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  Team Leadership
Characteristics
 Having patience to share
information;
 Being able to trust others and
to give up authority;
 Understanding when to
intervene.
 Team Leader’s Job
 Managing the team’s external
boundary;
 Facilitating the team process;
4. TEAM  Coaching, facilitating, handling
LEADERSHIP disciplinary problems, reviewing
team and individual performance,
training, and communication.
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SPECIFIC TEAM LEADERSHIP ROLES

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LEADERSHIP ISSUES IN THE 21ST
CENTURY
Managing Power
Legitimate power
The power a leader has as a
result of his or her position.
Coercive power
The power a leader has to
punish or control.
Reward power
The power to give positive
benefits or rewards.
Expert Power
The influence a leader can
exert as a result of his or
her expertise, skills, or
knowledge.
Referent power
The power of a leader that
arise because of a person’s
desirable resources or
admired personal traits.
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  Credibility (of a Leader)
 The assessment of a
leader’s honesty,
competence, and ability to
inspire by his or her
followers.
 Trust
 Is the belief of followers
and others in the integrity,
character, and ability of a
leader.
 Dimensions of trust:
integrity, competence,
consistency, loyalty, and
openness.

DEVELOPING  Is related to increases in

job performance,
CREDIBILITY AND organizational citizenship
behaviors, job
TRUST satisfaction, and
organization commitment.
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SUGGESTIONS FOR BUILDING TRUST

Practice openness.
Be fair.
Speak your feelings.
Tell the truth.
Show consistency.
Fulfill your promises.
Maintain confidences.
Demonstrate competence.

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  Ethics are part of
leadership when leaders
attempt to:
 Foster moral virtue
through changes in
attitudes and behaviors.
 Use their charisma in
socially constructive
ways.
 Promote ethical
behavior by exhibiting
their personal traits of
honesty and integrity.
 Moral Leadership
PROVIDING  Involves addressing the
means that a leader uses
ETHICAL to achieve goals as well
LEADERSHIP as the moral content of
those goals.
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  Empowerment
 Involves increasing
the decision-
making discretion
of workers such
that teams can
make key operating
decisions in
develop budgets,
scheduling
workloads,
controlling
EMPOWERING inventories, and
solving quality
EMPLOYEES problems.

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  Why empower
employees?
 Quicker responses
problems and
faster decisions.
 Addresses the
problem of
increased spans of
control in relieving
managers to work
EMPOWERING on other problems.

EMPLOYEES
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  Universal
Elements of
Effective
Leadership
1) Vision;
2) Foresight;
3) Providing
encouragement;
4) Trustworthiness;
CROSS- 5) Dynamism;
CULTURAL 6) Positiveness;
7) Proactiveness.
LEADERSHIP
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GENDER DIFFERENCES
AND LEADERSHIP
Research Findings
 Males and females use
different styles:
 Women tend to adopt a
more democratic or
participative style unless
in a male-dominated job.
 Women tend to use
transformational
leadership.
 Men tend to use
transactional leadership. 44
 Give people a reason to
come to work.
Be loyal to the
organization’s people
Spend time with people
who do the real work of
the organization.
Be more open and
more candid about what
business practices are
acceptable and proper
BASICS OF and how the
unacceptable ones
LEADERSHIP should be fixed.

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LEADERSHIP CAN BE
IRRELEVANT!
 Substitutes for Leadership -
certain individual, job, and
organizational variables can act as
“substitutes for leadership”,
negating the influence of the leader.
 Follower’s characteristics
 Experience, training, professional
orientation, or the need for independence.
 Job characteristics
 Routine, unambiguous, and satisfying jobs.
 Organization characteristics
 Explicit formalized goals, rigid rules and
procedures, or cohesive work groups.46