Teaching PowerPoint Slides - Chapter 5 Leadership

Organizational Behaviour All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

Chapter 2
LEADERSHIP

INTRODUCTION
❑ Leadership entails developing a vision for the

unit or organization or group led, managing their
resources under their direction, providing
effective leadership that enhances productivity
and maintaining important relationships
internally and externally.

DEFINITION OF LEADERS AND
LEADERSHIP
❑ A leader is a person that holds a dominant or

superior position within its field, and is able
to exercise a high degree of control
or influence over others.
❑ Leadership can be defined as a process by

which one individual influences others toward
the attainment of group or organizational goals.

IMPORTANCE OF LEADERSHIP
❑ Initiating action
– communicate by policies and plans to
subordinates from where the work actually
starts.
❑ Motivation
– motivates employee with economic and non-
economic reward and gets the work done by his
subordinates.
❑ Providing guidance
– not only supervise but also instruct the
subordinates
Cont…
❑ Creating confidence
– via expressing the work efforts and explaining to
the subordinates clearly about their roles
❑ Building morale
– act as morale booster and getting subordinates’
into confidence and winning their trust.
❑ Building work environment
– keep human relations such as have personal
contacts which listening and find a solution of
their problems.

Cont…
❑ Coordination
– via balancing personal interest with
organizational goals.

EARLY THEORIES – TRAITS
THEORY
❑ Trait theories assume that people inherit certain qualities
and traits that make them better suited to leadership.
Among the core traits identified are:
– Achievement drive
– Leadership motivation
– Honesty and integrity
– Self-confidence
– Cognitive ability
– Knowledge of business
– Emotional maturity
– Others
EARLY THEORIES –
BEHAVIOURAL THEORIES
OHIO STATE STUDIES
❑Ohio State University identified two distinct
leader’s behaviour which are Consideration
(people-oriented behavioural leaders) and Initiating
Structure (task-oriented leaders).
MICHIGAN STATE STUDIES

❑The studies resulted in two general leadership
behaviours or orientations: an employee
orientation and a production orientation.
EARLY THEORIES –
BEHAVIOURAL THEORIES (cont.)
MANAGERIAL GRID
❑The Managerial Grid is based on two behavioural
dimensions:
– Concern for People – This is the degree to which a
leader considers the needs of team members, their
interests, and areas of personal development when
deciding how best to accomplish a task.
– Concern for Production – This is the degree to which
a leader emphasizes concrete objectives,
organizational efficiency and high productivity when
deciding how best to accomplish a task.

CONTINGENCY APPROACH
FIEDLER CONTINGENCY MODEL

❑According to Fiedler, if an organization attempts
to achieve group effectiveness through leadership,
then there is a need to assess the leader
according to an underlying trait, assess the
situation faced by the leader, and construct a
proper match between the two.

(cont.)
HERSEY AND BLANCHARD’S SITUATIONAL THEORY
❑According to this model, the leader has to match
the leadership style according to the readiness of
subordinates which moves in stages and has a
cycle.
❑Therefore, this theory is also known as the life-
cycle theory of leadership.

(cont.)
HOUSE’S PATH-GOALTHEORY
❑According to House’s path-goal theory, a
leader’s effectiveness depends on several
employees and environmental contingent factors
and certain leadership styles which are:
– Directive
– Supportive
– Participative
– Achievement-oriented

CONTEMPORARY APPROACH
LEADER-MEMBER EXCHANGE THEORY

❑The theory states that all relationships between
leaders and subordinates go through three stages.
These are:
– Role-taking
– Role-making
• In-Group
• Out-Group
– Routinization

CONTEMPORARY APPROACH
(cont.)
THEORY Z
❑Theory Z management tends to promote stable
employment, high productivity and high employee morale
and satisfaction.
CHARISMATIC LEADERSHIP THEORY

❑Charismatic leaders have a clear vision of where they
want to go and how to get there and they are fantastic at
articulating that vision to others.
❑They are sensitive to their surroundings and to the needs
of their followers and potential followers.
TRANSFORMATIONAL VS
TRANSACTIONAL LEADERSHIP THEORY
Transformational Leadership
❑Transformational leadership may be found at all
levels of the organization: teams, departments,
divisions, and the organization as a whole.
❑Such leaders are visionary, inspiring, daring,
risk-takers and thoughtful thinkers.

TRANSFORMATIONAL VS
TRANSACTIONAL LEADERSHIP THEORY
(cont.)
❑ Transactional leadership involves motivating

and directing followers primarily through
appealing to their own self-interest.
❑ The power of transactional leaders comes from
their formal authority and responsibility in the
organization.

TRUST AND ETHICS IN
LEADERSHIP
❑ Trust is a belief or hope that another will neither

through words, actions or decisions act
opportunistically.
❑ Ethics create a sense of right and wrong in the
organizations and often when the law fails, it is
the ethics that may stop organizations from
harming the society or environment.

CREATING EFFECTIVE
LEADERS
❑ Earn respect by giving respect.
❑ Ensure everyone knows exactly what their roles are.
❑ Human beings crave appreciation.
❑ Set followers’ expectations high.
❑ Develop successes from failures.
❑ Challenge followers daily to achieve more.
❑ Lead followers by example.
❑ Great leaders are masters of communication.
❑ Create a fun and enjoyable but extremely serious
workplace.
❑ Great leaders have the reputation of high integrity.

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Organizational Behaviour All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

Organizational Behaviour All Rights Reserved

❑ Leadership entails developing a vision for the

Organizational Behaviour All Rights Reserved

❑ A leader is a person that holds a dominant or

❑ Leadership can be defined as a process by

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

MICHIGAN STATE STUDIES

Organizational Behaviour All Rights Reserved

FIEDLER CONTINGENCY MODEL

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

Organizational Behaviour All Rights Reserved

LEADER-MEMBER EXCHANGE THEORY

Organizational Behaviour All Rights Reserved

CHARISMATIC LEADERSHIP THEORY

Organizational Behaviour All Rights Reserved

❑ Transactional leadership involves motivating

Organizational Behaviour All Rights Reserved

❑ Trust is a belief or hope that another will neither

Organizational Behaviour All Rights Reserved

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