Leadership

Definition
The ability to positively influence people
and systems to have a meaningful
impact and achieve results.

Leading People

Influencing People

Commanding People

Guiding People
Characteristics of Leadership
1. Leader must have followers
2. It is working relationship between leader
and followers
3. Purpose is to achieve some common goal
or goals
4. A leader influences his followers willingly
not by force
5. Leadership is exercised in a given
situation
6. Leadership is a power relationship
7. It is a continuous process
Significance
1. Setting Goals

2. Motivating Employees
3. Building morale

4. Creating Confidence

5. Discipline

6. Developing Team-work

7. Facilitates Change

8. Representing the group

Leadership Styles
Leader by the position achieved

Leader by personality, charisma

Leader by moral example

Leader by power held

Intellectual leader

Leader because of ability to accomplish things

Leadership
Management
Leaders are Proactive Managers are Reactive

Leaders have Followers Managers have Employees

Leaders Create Teams Managers Manage Groups

Leaders Take Responsiblity Managers Shift Responsibility

 Leadership styles
Autocratic:
o Leader makes decisions without reference to anyone
else
o High degree of dependency on the leader
o Can create de-motivation and alienation
of staff
o May be valuable in some types of business where
decisions need to be made quickly and decisively
Democratic:
Encourages decision making from different
perspectives leadership may be
emphasised throughout the organisation

Consultative: process of consultation before

decisions are taken
Persuasive: Leader takes decision and seeks to
persuade others that the decision is correct
Laissez-Faire:

1. Let it be the leadership responsibilities

are shared by all
2. Can be very useful in businesses
where creative ideas are important
3. Can be highly motivational,
as people have control over their working life
4. Can make coordination and decision making
time-consuming and lacking in overall
direction
5. Relies on good team work
6. Relies on good interpersonal relations
Paternalistic:

Leader acts as a father figure

Paternalistic leader makes decision but may consult

Believes in the need to support staff

 Leadership Theories
Great Man Theory
assume that the capacity for leadership is
inherent that great leaders are born, not
made.
These theories often portray great leaders
as heroic, mythic, and destined to rise to
leadership when needed. The term Great
Man was used because, at the time,
leadership was thought of primarily as a
male quality, especially in terms of military
leadership.
Leadership Theories

Trait Theory-systematic
Early on, it was thought that leaders were born
with
inherent physiological and personality traits
Age
Height
Intelligence
Academic achievements

Stogdill (1974) identified several general

factors that differentiate leaders from non-
leaders
Leadership Theories
Trait Theory (continued)
Capacity: problem-solving capabilities, making
judgments and working hard

Achievements: accomplishments such as academic

record, knowledge and sports

Responsibility: dependability, reliability, self-drive,

perseverance, aggressiveness and self-confidence

Participation and involvement: highly developed

social interaction, popularity, swift adaptation to
changing situations, and easier cooperation compared
to non-leaders

Socio-economic status: effective leaders usually

belong to higher socio-economic classes
Leadership Theories
Behavioral Theories
The behavioral theorists concentrated on the unique
behavioral aspects
found in leaders that enabled them to attain effective
leadership . Following are the four main behavior theories
of leadership

1. University of Iowa Studies

2. The Ohio State studies
3. Universities of Michigan studies
4. The Managerial Grid
Leader Behaviours
Task Relationship
Gives direction to Friendly & open
Builds community
group
Listens to
Sets standards
suggestions
Makes plans Self-discloses
Defines roles & jobs Shows concern for
Clarifies goals others
&tasks Encourges others
Focuses on to achieve the
goals they have set
accomplishment of collaboratively
assignment
Ohio State studies
Ohio State studies focused on task and social behavior
of leaders
Identified two dimensions of leader behavior

Initiating Structure: role of leader in defining

his/her role and roles of group members
Consideration: leaders mutual trust and respect
for group members ideas and feelings

Two different behavioral theories:

Role Theory
Managerial Grid
Leadership Theories
Managerial Grid
Developed by Drs. Robert R. Blake and Jane S.
Mouton
Believed managers have different leadership styles
which led to two different dimensions of leadership:
Concern for Production: manager who is
task-oriented and focuses on getting results
or accomplishing the mission (X-axis of grid)
Concern for People: manager who avoids
conflicts and strives for friendly relations with
subordinates (Y-axis of grid)
 Leadership Theories
Managerial Grid (continued)

9
8
7
6
**manage
5
rs goal is
4 9,9**
3
2
1

1 2 3 4 5 6 7 8 9
Leadership Theories
Participative Theories
Assumes the following
Involvement in decision-making improves the
understanding of the issues involved and the
commitment of those who must carry out the
decisions.
People are less competitive and more
collaborative when they are working on joint
goals.
Several people deciding together make better
decisions than one person alone.

Two different participative theories:

Lewins leadership styles
Likerts leadership styles
Likerts system of Leadership
Rensis Likert and his associates studied the patterns and
styles of managers for three decades at the University
of Michigan, USA, and identified a four-fold model of
management systems.

1. The model was developed on the basis of a

questionnaire administered to managers in over 200
organizations and research into the performance
characteristics of different types of organizations.
2. The four systems of management system or the four
leadership styles identified by Likert are:
 System 1 - Exploitative Authoritative:Responsibility lies in the
hands of the people at the upper echelons of the hierarchy. The superior
has no trust and confidence in subordinates. The decisions are imposed
on subordinates and they do not feel free at all to discuss things about
the job with their superior. The teamwork or communication is very little
and the motivation is based on threats.
System 2 - Benevolent Authoritative:The responsibility lies at
the managerial levels but not at the lower levels of the organizational
hierarchy. The superior has condescending confidence and trust in
subordinates (master-servant relationship). Here again, the subordinates
do not feel free to discuss things about the job with their superior. The
teamwork or communication is very little and motivation is based on a
system of rewards.
System 3 - Consultative:Responsibility is spread widely through
the organizational hierarchy. The superior has substantial but not
complete confidence in subordinates. Some amount of discussion about
job related things takes place between the superior and subordinates.
There is a fair amount of teamwork, and communication takes place
vertically and horizontally. The motivation is based on rewards and
involvement in the job.
System 4 - Participative:Responsibility for achieving the
Conclusion

According to Rensis Likert, the nearer the

behavioral characteristics of an
organization approach System 4
(Participative), the more likely this will lead
to long-term improvement in staff turnover
and high productivity, low scrap, low costs,
and high earnings, if an organization
wants to achieve optimum effectiveness,
then this is the ideal system
Leadership Continuum
A simple model which shows the
relationship between the level of
freedom that a manager chooses to
give to a team, and the level of
authority used by the manager. As
the team's freedom is increased, so
the manager's authority decreases.
This is a positive way for both teams
and managers to develop.
Leadership Theories
Contingency Theory
Assumptions:
No one best way of leading
Ability to lead contingent upon various
situational factors:
Leaders preferred style
Capabilities and behaviors of followers
Various other situational factors
Effect:
Leaders who are successful in one situation
may become unsuccessful if the factors
around them change
Leadership Theories
Contingency Theory: Fiedlers Least Preferred
Co-Worker (LPC) Theory
Assumptions:
Leaders prioritize between task-focus and people-focus
Leaders dont readily change their style
Key situational factor in matching leader to situation:
Relationships - high if the leader is generally accepted and
respected by followers
Power - high if the task is very structured
Task structure - high if a great deal of authority and power are
formally attributed to the leader's position
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

Tries to identify the underlying beliefs about people, in

particular whether the leader sees others as positive (high
LPC) or negative (low LPC).
Leadership Theories
Findings of the Fiedler Model

Exhibit 17.4
Leadership Theories

Situational Leadership
Situational factors (motivation, capability of
followers, relationship between followers
and leader) determine the best action of
leader
Leader must be flexible to diagnosis
leadership style appropriate for situation
and be able to apply style
No one best leadership style for all
situations
 Path-Goal Model
Path-Goal Model States that the leaders 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.
Leaders assume different leadership styles at different times
depending on the situation:
Directive leader- The leader informs her followers on what is expected of them, such as telling them
what to do, how to perform a task, and scheduling and coordinating work. It is most effective when people are
unsure about the task or when there is a lot of uncertainty within the environment.

Supportive- leader The leader makes work pleasant for the workers by showing concern
for them and by being friendly and approachable. It is most effective in situations in which tasks
and relationships are physically or psychologically challenging.
Participative leader - The leader consults with his followers before making a
decision on how to proceed. It is most effective when subordinates are highly trained
and involved in their work.
Achievement oriented leader- The leader sets challenging goals for her followers,
expects them to perform at their highest level, and shows confidence in their ability to meet this
expectation. It is most effective in professional work environments,
Employee Characteristics
Employees interpret their leader's behavior based on their needs, such
as the degree of structure they need, affiliation, perceived level of
ability, and desire for control. For example, if a leader provides more
structure than what they need, they become less motivated. Thus, a
leader needs to understand their employees so they know how to best
motivate them.

Task and Environmental Characteristics

Overcoming obstacles is a special focus of path-goal theory. If an
obstacle becomes too strong, then the leader needs to step in and
help the employee select a path to work around it. Some of the more
difficult task characteristics that often arise are:
Design of the task - The design of the task might call for the leader's
support. For example, if the task is ambiguous, then the leader might
have to give it more structure or an extremely difficult task might call
for leader support.

Formal authority system - Depending upon the task authority, the

leader can provide clear goals and/or give the employee some or all
control.

Work group - If the team is non-supportive, then the leader needs to

be cohesiveness and espouse esprit-de-corps that provides
comradeship, enthusiasm, and devotion to all team members.
Leadership Theories
Hersey & Blanchards Situational Leadership
(1977)
Identified 4 different leadership styles based on readiness of followers
S1. Telling (high task/low relationship behavior)
Giving considerable attention to defining roles and goals
Recommended for new staff, repetitive work, work needed in a
short time span
Used when people are unable and unwilling
S2. Selling (high task/high relationship behavior)
Most direction given by leader encouraging people to buy into
task
Used when people are willing but unable
S3. Participating (high relationship/low task behavior)
Decision making shared between leaders and followers, role of
leader to facilitate and communicate
Used when people are able but unwilling
S4. Delegating (low relationship/low task behavior)
Leader identifies problem but followers are responsible for
carrying out response
 Maturity levels - The right leadership style will depend on
the person or group being led. The Hersey-Blanchard Situational Leadership
Theory identified four levels of maturity M1 through M4:
M1 They still lack the specific skills required for the job in hand and are
unable and unwilling to do or to take responsibility for this job or task.
(According to Ken Blanchard "The honeymoon is over")
M2 They are unable to take on responsibility for the task being done;
however, they are willing to work at the task. They are novice but enthusiastic.
M3 They are experienced and able to do the task but lack the confidence or
the willingness to take on responsibility.
M4 They are experienced at the task, and comfortable with their own ability
to do it well. They are able and willing to not only do the task, but to take
responsibility for the task.
Maturity levels are also task-specific. A person might be generally skilled,
confident and motivated in their job, but would still have a maturity level M1
when asked to perform a task requiring skills they don't possess.
Leadership Theories
Hersey & Blanchards Model

Source: Reprinted with permission from the Center for Leadership

Studies. Situational Leadership is a registered trademark of the Center
for Leadership Studies. Escondido, California. All rights reserved.
Transactional Vs. Transformational
Leadership
Basis of Transactional Transformational
Distinction
Basis Based on exchange Based on leaders
relationship between values, beliefs and
leader and followers. needs of followers
Method of Rewards and Leaders charisma,
inspiration recognition for good vision and energy
performance
Orientation Task Orientaion Goal Orienatation
Approach Passive and stable Active and dynamic
Main functions of Determination of Providing vision and
leader objectives, clarifying sense of mission,
tasks, helping instilling pride,
subordinates in gaining respect and
achieving objectives trust, inspiring
people, giving
personal attention.
Summary of Leadership Theories
Theory Leadership Based On
Trait Theory Leaders born with leadership traits
Behavioral Theory Initial structure and consideration
- Role Theory Shaped by culture, training, modeling
- Managerial Grid Concern for production and concern for people
Participative Leadership More people involved = better collaboration
- Lewins Style Autocratic, democratic, laissez-faire
- Likerts Style Task oriented, relationship oriented, participative
style
Contingency Theories No one best leadership style
- Fiedlers LPC Theory Task focus v. relationship focus
- Cognitive Resource Theory Intelligence and experience make a difference
- Houses Path Goal Theory Help followers make their goals compatible with
organizational goals
Situational Leadership Similar to contingency theory
- Hersey and Blanchard Based on relationship between leader and follower
and task behavior
- Vroom & Yetton Decision quality and decision acceptance
Queries????