Chapter 7

Leading and Leadership

 Leader and Leadership
• Leaders
– People who can influence the behaviors of others
without having to rely on force.
– People who are accepted as leaders by others.

• Leadership
– Leadership can simply be defined as the ability to
influence a group towards the achievement of goals.
 Nature of Leadership
• Leadership derives from power and is similar to, yet distinct
from, management. A manager is necessarily a leader but a leader may
not be a manager.
• Leadership is essential for managing. The ability to lead
effectively is very important for a manager because he has to
combine resources and lead a group to achieve objectives.
• The essence of leadership is followership. In other words, it is
the willingness of people to follow that makes that person a
leader.
• Leadership and motivation are closely interconnected. By
understanding motivation one can appreciate better what people
want why they act as they do.
• Leadership involves an unequal distribution of power between
leaders and group members. Group members are not powerless;
they can shape group activities in a number of ways. Still the
leader will usually have more power.
• Leadership is to be concerned about values. Followers learn
ethics and values from their leaders. Leaders are the real teacher
of ethics and they can reinforce ideals.
 Manager Versus Leaders
Managers Leaders
Someone who works with & Someone who can influence the
through other people by behavior of other without having
coordinating their activity to to rely on force; a person accepted
accomplish organizational goals. by other as a leader.
Managers establish plans, design Leaders establish the vision of the
structure, and monitor results future, and organize & influence
against the plans. people by communicating this
vision
Managers are appointed to their Leaders are appointed or emerged
positions. from within a work group

Directs energy toward: goals, Directs energy to guide people to

resources & structure, determining toward practical solution.
the problems to be solved.
Managers take impersonal attitude Leaders take personal and active
toward goals. attitude toward goals.
 Power and Leadership
• Power is the ability to affect the behavior of others.
– Legitimate power
• The power a person receives as a result of his position in
the formal hierarchy of an organization.
– Reward power:
• Power to give or withhold rewards, such as salary
increases, bonuses, promotions etc.
– Coercive power:
• Power to punish; whether by firing a subordinate, or by
withholding a merit increase.
– Referent power:
• Derives from the personal characteristics of an individual
that make other people want to associate with the person.
– Expert power:
• Power may also come from the expertness of a person or
a group. This is the power of knowledge.
 Early Theories of Leadership: Trait Theory
• Trait Theory
– Leadership research in the 1920s and 1960s focused on
leader traits – characteristics that might be used to
differentiate leaders from nonleaders.
– The trait approach assumed that some basic trait or set of
traits existed that differentiated leaders from nonleaders.
– Theories indicated that Leaders are born, not made.
Seven Traits Associated with Leadership
1. Ambition & Energy 2. Desire to Lead
3. Honesty & Integrity 4. Self Confidence
5. Intelligence 6. Extraversion
7. Job Relevant Knowledge
 Early Theories of Leadership: Trait Theory
• Limitations of Trait Theory
– It overlooks the needs of the followers.
– It generally fails to clarify the relative importance of various
traits.
– It doesn’t separate cause from effect (for example, are
leaders self-confident or does success as a leader build self-
confidence)
– It ignores situational factors.
 Early Theories of Leadership: Behavioral
Theories
• Behavioral Theories
– Theories proposing that specific behaviors differentiate
leaders from nonleaders.
– Assumed that effective leaders somehow behaved
differently from ineffective leaders.
– The goal of the behaviors approach was to develop a fuller
understanding of leadership behaviors
– Theories indicated that Leadership traits can be taught
 Early Theories of Leadership: Behavioral
Theories
• University of Iowa Studies (Kurt Lewin)
– Identified three leadership styles:
• The autocratic style described a leader who typically
tended to centralize authority, dictate work methods,
makes most decisions by him and limit employee
participation.
• The democratic/participative style described a leader
who tended to involve employees in decision making,
delegate authority, and encourage participation in
deciding work methods and goals.
• The laissez-faire/free -rein style described a leader who
generally gave the group complete freedom to make
decisions.
 Early Theories of Leadership: Behavioral Theories
• Research findings: mixed
results Autocratic
– No specific style was Leader
consistently better for
producing better
performance Follower Follower Follower
– Employees were more
satisfied under a
democratic leader than an
autocratic leader. Laissez-faire
Leader
Democratic
Leader

Follower Follower Follower

Follower Follower Follower
 Early Theories of Leadership: Behavioral
Theories
• Ohio State Studies
– Identified two basic leadership styles that can be exhibited
simultaneously:
• Initiating-structure behavior—the leader clearly defines
the leader-subordinate role expectations, formalizes
communications, and sets the working agenda.
• Consideration behavior—the leader shows concern for
subordinates and attempts to establish a friendly and
supportive climate.
 Early Theories of Leadership: Behavioral
Theories
High

High Structure Low Structure

And And
High Consideration High Consideration

Consideration

High Structure Low Structure

And And
Low Consideration Low Consideration
Low
High Low
Initiating Structure

• Research findings: mixed results

– High-high leaders generally, but not always, achieved high group
task performance and satisfaction.
– Evidence indicated that situational factors appeared to strongly
 Early Theories of Leadership: Behavioral
Theories
• University of Michigan Studies
– Identified two dimensions of leader behavior
• Employee oriented: emphasizing personal relationships
• Production oriented: emphasizing task accomplishment
– Research findings:
• Leaders who are employee oriented are strongly
associated with high group productivity and high job
satisfaction.
 Early Theories of Leadership: Behavioral
Theories
• Managerial Grid (Robert Black & Jane Mouton)
– Appraises leadership styles using two dimensions:
• Concern for people: includes attitudes of a leader toward
followers’ comfort, well being, satisfaction, maintenance
of good interpersonal relations etc.
• Concern for production: includes the attitudes of a leader
toward a wide variety of things, such as work procedures
and processes, work efficiency, volume of output etc.
– Places managerial styles in five categories:
• Impoverished management
• Task management
• Middle-of-the-road management
• Country club management
• Team management
Early Theories of Leadership: Behavioral
Theories

The
Managerial Grid

A nine-by-nine
matrix outlining
81 different
leadership styles
 Contingency Theories (Fiedler’s Model)
• The Fiedler Contingency Model
– 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.

• Least preferred coworker (LPC) measure

– The measuring scale that asks leaders to describe the person
with whom they are least able to work well.
– High LPC scale scores indicate a relationship orientation;
low LPC scores indicate a task orientation on the part of the
leader.
 Contingency Theories (Fiedler’s Model)
• Contingency variables determining situational favorableness

Leader-Member Relations
The degree of confidence, trust, and respect subordinates
have in their leader

Task Structure
The degree to which job assignments are procedurized

Position Power

Influence derives from one’s formal position in the

organization; include hire, fire, promote, or give salary increases
 Contingency Theories (Fiedler’s Model)
• Findings from Fiedler’s Model
Contingency Theories: Situational Leadership
Theory
• Hersey and Blanchard’s Situational Leadership Theory (SLT)
– 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
Contingency Theories: Situational Leadership
Theory
Four Leadership Styles Four Stages of Follower readiness

1. Directive 1. Unable & Unwilling

2. High task & relationship 2. Unable but Willing
orientations 3. Able & Unwilling
3. Supportive 4. Able & Willing
4. Monitoring
Unable and Unable but Able and Able and
Unwilling Willing Unwilling Willing

Follower readiness:
ability and willingness

Leader: decreasing need

for support and supervision

Directive High Task and Supportive Monitoring

Relationship Orientations Participative
 Contingency Theories: Path-Goal Theory
• Path-Goal Model (Robert House)
– 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.
Contingency Theories: Path-Goal Theory
 Contingency Theories: Path-Goal Theory
• Leader Behaviors:
– Directive leader behavior: letting subordinates know what
is expected of them, giving guidance and direction, and
scheduling work.
• Appropriate when jobs are ambiguous
– Supportive leader behavior: being friendly and
approachable, having concern for subordinate welfare, and
treating subordinates as equals.
• Appropriate when followers lack confidence
– Participative leader behavior: consulting with subordinates,
soliciting suggestions, and allowing participation in decision
making.
• Appropriate when the procedures of job are not well defined.
– Achievement-oriented leader behavior: setting challenging
goals, expecting subordinates to perform at high levels,
encouraging and showing confidence in subordinates.
• Appropriate when there is a lack of challenge in jobs
 Substitutes for Leadership
• A concept that identifies situations in which leader behavior is
neutralized or replaced by characteristics of subordinates, the
task, and the organization.
Characteristics that Substitute for Leadership

Subordinate Task Organization

Ability Routineness Formalization

Experience The availability of feedback Group cohesion
Need for independence Intrinsic satisfaction Inflexibility
Professional orientation A rigid reward structure
Indifference towards
organizational goals
 Current Approaches to Leadership
• Charismatic 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
 Current Approaches to Leadership
• 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 have the ability to:
• Explain the vision to others
• Express the vision not just verbally but through behavior
• Extend or apply the vision to different leadership
contexts
 Current Approaches to Leadership
• Transactional Leadership
– 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 requirements.
– Leaders who also are capable of having a profound and
extraordinary effect on their followers.