CH 8

Management and Organisational Behaviour
7th Edition
CHAPTER 8
The Nature of Leadership
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 8.2
Defining leadership
•Over 400 definitions of leadership to choose

from
It is a veritable minefield of misunderstanding &

difference through which theorists & practitioners
must tread warily.
Crainer
OHT 8.3
Different definitions
• Leadership is a matter of making a difference.

• It entails changing an organisation & making choices
among plausible alternatives.
• It depends on the development of others & mobilising
them to get the job done Useem
• Leadership is a combination of persuasion &

compulsion that results in making people do things they
might not otherwise have done Adair
OHT 8.4
Importance of leadership
• Good management leadership helps to develop

team work & the integration of individual &
group goals
• It aids intrinsic motivation by emphasising the

importance of the work people do
Tustin
OHT 8.5
Leadership in times of change
Good leaders are sensitive to the impact of

change & uncertainty
Effective change leadership is the key to shifting

people’s perceptions from seeing change as a
threat to seeing it as an exciting challenge
Hooper & Potter
OHT 8.6
Leadership & management
Management – getting things done through other people

in order to achieve stated organisational objectives
Leadership – emphasis on interpersonal behaviour in a

broader context
Leadership is often associated with the willing &

enthusiastic behaviour of followers & does not necessarily
take place within the hierarchical structure of the
organisation
OHT 8.7
Distinction between management & leadership
Managers Leaders
• Administer • Innovate
• Maintain • Develop
• Focus on systems & • Focus on people
structure • Inspire trust
• Rely on control • Have an eye on the
• Keep an eye on the horizon
bottom line • Do the right thing
• Do things right
Hollingsworth
OHT 8.8
The interrelationship between management &

leadership
I have never been fond of distinguishing between

leadership and management, they overlap and you need
both qualities. Fullan
Increasingly management and leadership are seen as

inextricably linked. Dearlove
Leadership and management are closely inter-related;

how to get things done through people and how to make
work an enjoyable experience. Mann
OHT 8.9
Managerial leadership framework
• Qualities or traits approach

• The functional or group approach
• Leadership as a behavioural category
• Styles of leadership
• The situational approach & contingency models
• Transitional or transformational leadership
• Inspirational leadership
OHT 8.10 Figure 8.2
Action-centred leadership
Source: Adair, J., Action-Centred Leadership, Gower Press (1979), p.10
OHT 8.11
Task functions
• Achieving the objectives of the work group
• Defining group tasks
• Planning the work
• Allocation of resources
• Organisation of duties & responsibilities
OHT 8.12
Team functions
• Maintaining morale & building team spirit
• The cohesiveness of the group as a working unit
• Setting standards & maintaining discipline
• Systems of communication within the group
• Training the group
• Appointment of sub-leaders
OHT 8.13
Individual functions
• Meeting the needs of the individual members of the

group
• Attending to personal problems
• Giving praise & status
• Reconciling conflicts between group needs & needs of

the individual
• Training individuals
OHT 8.14
Results of the Ohio State Leadership Studies
Two major dimensions of leadership behaviour –
1. Consideration – reflects the extent to which the

leader establishes trust, mutual respect & rapport with
the group & shows concern, warmth, support, &
consideration for subordinates
2. Structure – reflects the extent to which the leader

defines & structures group interactions towards the
attainment of formal goals
OHT 8.15 Figure 8.3
Dimensions of managerial leadership
OHT 8.16
Broad classification of leadership style
• Authoritarian (autocratic) style
• Democratic style
• Laissez-faire (genuine) style
OHT 8.17
Main forces in deciding type of leadership
• Forces in the manager
• Forces in the subordinate
• Forces in the situation
Tannenbaum & Schmidt
OHT 8.18
Forces in the manager
• Value systems
• Confidence in subordinates
• Leadership inclinations
• Feelings of security in an uncertain situation
OHT 8.19
Forces in the subordinate
• Strength of the needs for independence

• Readiness to assume responsibility for decision-making
• Degree of tolerance for ambiguity
• Interest in the problem & feelings as to its importance
• Understanding & identification with the goals of the
organisation
• Necessary knowledge & experience to deal with the
problem
• The extent of learning to expect to share in decision-
making
OHT 8.20
Forces in the situation
• Type of organisation
• Group effectiveness
• Nature of the problem
• Pressure of time
OHT 8.21
Contingency models of leadership

Major contingency models of leadership include –
• Favourability of leadership situation (Fiedler)

• Quality & acceptance of leader’s decision
(Vroom & Yetton)
• Path–goal theory (House)
• Maturity of followers (Hersey & Blanchard)
OHT 8.22
Vroom & Yetton contingency model

• Decision quality – the effect that the decision
has on group performance
• Decision acceptance – the motivation &

commitment of group members in
implementing the decision
• Time required to make the decision
OHT 8.23
Vroom & Jago revised decision model
In this model the contingency variables relate to –
• Quality requirement • Goal congruence

• Commitment • Subordinate information
requirement • Time constraints
• Leader information • Geographical dispersion
• Problem structure • Motivation time &
• Commitment probability development
OHT 8.24
Path – goal theory

leadership behaviour
• Directive
• Supportive
• Participative
• Achievement-oriented
House
OHT 8.25 Figure 8.6
Path – goal theory

of leadership
OHT 8.26
Situational Leadership Model
OHT 8.27
Transactional leadership
• Based on legitimate authority within the bureaucratic
structure of an organisation
• Emphasis on the clarification of goals & objectives, work

tasks & outcomes, organisational rewards &
punishments
• Appeals to the self interest of followers
• Based on a relationship of mutual dependence & an

exchange process of ‘I will give you this, if you do that’
OHT 8.28
Transformational leadership
• A process of engendering higher levels of motivation &

commitment among followers
• Emphasis is on generating a vision for the organisation,

the leader’s ability to appeal to higher ideals & values of
followers, & creating a feeling of justice, loyalty & trust
• Is about transforming the performance or fortunes of a

business
OHT 8.29
Components of transformational leadership
• Idealised influence
• Inspirational motivation
• Intellectual stimulation
• Individualised consideration
OHT 8.30
Guidelines for transformational leadership
• Articulate a clear & • Celebrate success

appealing vision • Use dramatic symbolic
• Explain how the vision actions to emphasise key
can be attained values
• Act confident & optimistic • Lead by example
• Express confidence in • Empower people to
followers achieve the vision
• Provide opportunities for
early success
Yukl
OHT 8.31
Inspirational leadership
A truly inspirational leader:
• Understands the spirit within
• Connects with the led, appreciates the capabilities of

others, and through trust unlocks the powers in others
• Recognises & seizes the brief window of opportunity that

acts as a powerful catalyst, inspiring the leader & the led
Adair
OHT 8.32
Power & leadership influence
• Reward power • Referent power
• Coercive power • Expert power
• Legitimate power
French & Raven
OHT 8.33
The leadership relationship
Whatever the perceived approach to leadership,

the most important point is the nature of the
leadership relationship and the manner in which
the leader influences the behaviour and actions of
other people.
OHT 8.34 Table 8.1
Guidelines for building & using legitimate power
Source: Leadership in Organizations, Fourth edition, by Yukl, Gary. © 1998, p.197. Prentice-Hall, Inc., Upper Saddle River, NJ.
OHT 8.35 Table 8.1
Guidelines for building & using reward power
OHT 8.36 Table 8.1
Guidelines for building & using expert power
OHT 8.37 Table 8.1
Guidelines for building & using referent power
OHT 8.38 Table 8.1
Guidelines for building & using coercive power
OHT 8.39
The right leader for the right situation
Organisations that exist in a dynamic environment

generally require three types of leaders –
• Innovator
• Implementor
• Pacifier
Rodrigues
OHT 8.40
Expectations for leaders of the future
• Dream collectively
• Balance the short term with the longer term
• Build an organisation that values people
• Understand the reality of the organisation
Gratton
OHT 8.41
New skills & competencies

• The new leader understands & practises the
power of appreciation
• The new leader keeps reminding people of what

is important
• The new leader generates & sustains trust
• The new leader & the led are intimate allies

Bennis

CH 8

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Management and Organisational Behaviour

The Nature of Leadership

•Over 400 definitions of leadership to choose

It is a veritable minefield of misunderstanding &

• Leadership is a matter of making a difference.

• Leadership is a combination of persuasion &

• Good management leadership helps to develop

• It aids intrinsic motivation by emphasising the

Leadership in times of change

Good leaders are sensitive to the impact of

Effective change leadership is the key to shifting

Hooper & Potter

Leadership & management

Management – getting things done through other people

Leadership – emphasis on interpersonal behaviour in a

Leadership is often associated with the willing &

Distinction between management & leadership

The interrelationship between management &

I have never been fond of distinguishing between

Increasingly management and leadership are seen as

Leadership and management are closely inter-related;

Managerial leadership framework

• Qualities or traits approach

Source: Adair, J., Action-Centred Leadership, Gower Press (1979), p.10

• Achieving the objectives of the work group

• Defining group tasks

• Planning the work

• Organisation of duties & responsibilities

• Maintaining morale & building team spirit

• The cohesiveness of the group as a working unit

• Setting standards & maintaining discipline

• Systems of communication within the group

• Training the group

• Meeting the needs of the individual members of the

• Attending to personal problems

• Giving praise & status

• Reconciling conflicts between group needs & needs of

Results of the Ohio State Leadership Studies

Two major dimensions of leadership behaviour –

1. Consideration – reflects the extent to which the

2. Structure – reflects the extent to which the leader

Dimensions of managerial leadership

Broad classification of leadership style

• Authoritarian (autocratic) style

• Laissez-faire (genuine) style

Main forces in deciding type of leadership

• Forces in the manager

• Forces in the subordinate

• Forces in the situation

Tannenbaum & Schmidt

Forces in the manager

• Feelings of security in an uncertain situation

Forces in the subordinate

• Strength of the needs for independence

Forces in the situation

Contingency models of leadership

• Favourability of leadership situation (Fiedler)

Vroom & Yetton contingency model

• Decision acceptance – the motivation &

• Time required to make the decision

Vroom & Jago revised decision model

In this model the contingency variables relate to –

• Quality requirement • Goal congruence