Chapter 2

CHAPTER 2
THE LEADERSHIP THEORIES

Learning Objectives
1. Outline some personal traits and characteristics that are associated with effective leaders.
2. Distinguish among various roles leaders play in organizations, including operations,
collaborative, and advisory roles, and where the strengths might best fit.
3. Recognize autocratic versus democratic leadership behavior and its impact.
4. Identify the distinction between people-oriented and task-oriented leadership behavior.
5. Understand how the theory of individualized leadership has broadened the understanding
of relationships between leaders and followers.
6. Describe the universalistic and contingency approaches to leadership.
Leadership Theories (in specific)
Great Man Theories
• Leaders as a Great Man who put everything together and influenced
others to follow based on the strength of inherited traits, qualities, and
abilities.
• Concept: Right breed and born to lead. Example: Julius Caesar
Trait Theories
• Modification of Great Man Theories; leaders acquired particular traits
or characteristics (through training and practice) that distinguished
them from non-leaders and contributed to success.
• Concept: Trait of intelligence, honesty, self-confidence & appearance
Behavior Theories
• Leaders’ behavior correlated with leadership effectiveness or
ineffectiveness (through teaching and observation).
• Concept: Leaders are made, not born
Contingency Theories
• Leaders can analyze their situation and adapt their behavior to improve
leadership effectiveness which also known as situational theories.
• Concept: Based on competence and commitment of followers
Transactional Leadership
• Leaders focus on results, follow the existing organization structure and
measure success based on organization system (rewards & penalties).
• Concept: autocratic approach & control situation. Example: CEO
Transformational Leadership
• Leaders act to release human potential through empowerment and
development of followers.
• Concept: Engage with followers through rapport, inspiration and
empathy
Personal Characteristics of Leaders
Types of Leadership Roles
Behavior Approaches
Autocratic
• Centralizes authority and derives power from position,

control of rewards, and coercion.
Democratic
• Delegates authority, encourages participation, relies on

subordinates’ for completion of tasks, and depends on
subordinate respect for influence.
• Effective if subordinates possess decision-making skills
Leadership Continuum
Themes of Leader Behavior Research
Individualized Leadership
• Leader develops a
unique relationship
with followers
which determine:
• Leader’s behavior
toward the
followers
• Follower’ response
to the leader
Vertical Dyad Linkage (VDL) Model
• Argues for the importance of the dyad (duo) formed by a

leader with each member of the group;
▪ In-Group Relationship : Seen among members with whom leaders
spend a disproportionate (unbalanced) amount of time.
▪ Out-Group Relationship : Seen among members of the group
who did not experience a sense of trust and extra consideration.
Leader Behavior Toward
In-Group versus Out-Group
Leader-Member Exchange (LMX)
• Explores how leader-member relationships develop over time

and how the quality of exchange relationships affects
outcomes.
• Higher-quality relationship will lead to higher performance.
▪ Leading to greater job satisfaction for in-group members
Partnership Building
• Leaders strive to develop a positive relationship with each

subordinate;
▪ Positive relationship will have a different form for each person.
▪ Performance and productivity gains can be achieved, if the leader
develops positive relationships with each subordinate.
The Universalistic and Contingency
Approaches to Leadership
Meta-Categories of Leader Behavior
and Four Leader Styles
The Situational Model of Leadership
Fiedler’s Contingency Model:
How Leader Style Fits the Situation
Leader Roles in the Path-Goal Model
Path-Goal Situations and
Preferred Leader Behaviors
Five Leader Decision Styles
Leadership Diagnostic Questions
Decision Significance
• How significant is this decision for the project or organization?
Importance of Commitment
• How vital is subordinate commitment to carry out the decision?
Leader Expertise
• What is the level of the leader’s expertise in relation to the problem?
Likelihood of Commitment
• If the leader were to make the decision alone, would subordinates
have high or low commitment to the decision?
Leadership Diagnostic Questions
Group Support For Goals
• What is the degree of subordinate support for the team’s or
organization’s objectives at stake in this decision?
Goal Expertise
• What is the level of group members’ knowledge and expertise
in relation to the problem?
Team Competence
• How skilled and committed are group members to working
together as a team to solve problems?
Triarchic Intelligence Model
• What leader does when solving a complex problem.
• 3 types of Triarchic Intelligence:-
1. Analytic Intelligence : Quick learner and see connection between
issues.
2. Practical Intelligence : Adaptation/knowing how things to get done
(enrich knowledge and reflecting on experience) and leading familiar
situation.
3. Creative Intelligence : Novel and useful (inventor/pioneer)
27
Substitutes for Leadership
Substitute
• Situational variable that makes leadership

unnecessary or redundant.
Neutralizer
• Situational characteristic that counteracts the

leadership style and prevents the leader from
displaying certain behaviors. 28
Substitutes and Neutralizers
For Leadership
END OF CHAPTER 2
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THE LEADERSHIP THEORIES

• Centralizes authority and derives power from position,

• Delegates authority, encourages participation, relies on

• Argues for the importance of the dyad (duo) formed by a

• Explores how leader-member relationships develop over time

• Leaders strive to develop a positive relationship with each

• Situational variable that makes leadership

• Situational characteristic that counteracts the

Questions & Answers (Q&A)

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