CHAPTER 9

Leadership
Week 11
 Leadership
Leadership Concepts
Concepts

Leader: An individual within a

group or an organization who
wields the most influence over
others.
Leadership: The process
whereby one individual
influences other group
members towards the
attainment of defined group or
organizational goals.
 Leadership
Leadership Characteristics
Characteristics

Leadership:
– Involves non-coercive influence
– Is goal directed
– Requires followers

3
Non-Coercive
Non-Coercive Influence
Influence -- Illustration
Illustration

• ‘You do not lead by hitting people over the head;

that’s assault, not leadership’ (Eisenhower).

• ‘Power grows out of the barrel of the gun’ (Mao

Zedong).
 Leaders
Leaders vs.
vs. Managers
Managers
Leaders Managers
Develop a vision for the Implement the vision created by the
organization and devise strategies leader.
to attain that vision.
Oriented towards change and Oriented towards stability and short-
long-term effectiveness. term efficiency.
Change oriented leadership A ‘managerial’ orientation seems
seems appropriate in times of appropriate when the external
environmental turmoil. environment is relatively stable.

• Organizations need both leadership and management to be effective.

• Leadership is necessary to create change, while management is

necessary to achieve orderly results.
 Trait
Trait Theories
Theories of
of Leadership
Leadership
Leaders are Born, Not Made

 Trait theories focused on identifying leader traits – that is,

characteristics – that would differentiate leaders from non-
leaders.

 However, despite the best efforts of researchers, it proved

impossible to identify a set of traits that would always
differentiate a leader from a non-leader.

 Later research on the leadership process identified seven traits

associated with successful leadership:
Seven
Seven Traits
Traits Linked
Linked With
With Leadership
Leadership
Behavioral
Behavioral Theories
Theories of
of Leadership
Leadership
 The behavioral theories focused on what leaders actually
do – that is, on the specific behaviors performed by
effective leaders.
 The main premise of these theories was that effective
leaders engage in certain behaviors, which distinguish
them from ineffective leaders.
 This approach suggests that these behaviors can be
learned.
 Important
Important Behavioral
Behavioral Studies
Studies

• Ohio State Studies

• University of Michigan Studies

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Behavioral
Behavioral Theories
Theories (continued)
(continued)
• Ohio State Studies
• Identified two dimensions of leader behavior:

Initiating structure: leader behavior, which ensures that the

work gets done and subordinates perform their jobs effectively
(e.g., setting goals & motivating employees to attain those
goals).

Consideration: leader behavior, which focuses on creating

mutual respect and trust with followers.
Behavioral
Behavioral Theories
Theories (continued)
(continued)
• University of Michigan Studies
• Identified two dimensions of leader behavior:

Employee oriented: Focuses on interpersonal relationships

Production oriented: Focuses on task completion and goal

accomplishment.
Overlap
Overlap between
between the
the Dimensions
Dimensions of
of
the
the Two
Two Studies
Studies

• Consideration (Ohio State Studies)

• Employee Oriented (University of Michigan Studies)

• Initiating Structure (Ohio State Studies)

• Production Oriented (University of Michigan Studies)
 Behavioral
Behavioral Theories
Theories (continued)
(continued)
• Based on these studies, researchers identified two leadership
styles:
• People Oriented Leadership
• Task Oriented Leadership

• People oriented leadership is associated with higher job satisfaction

and commitment but can lead to lower job performance.

• Task oriented leadership on the contrary, is associated with higher

productivity but may lead to lower satisfaction and commitment.

• To be effective, a leader should exhibit high levels of both task-

oriented and people-oriented behaviours.
 Contingency
Contingency Theories
Theories
 While trait and behavior theories are different from each other –
one focuses on what effective leaders are like and the other on
what they do – they have something in common:

 Each approach essentially ignores the situation in which

leadership takes place.

 Contingency Theory adds this additional aspect to our

understanding leadership effectiveness studies.

 Two key contingency theories are:

 House’s Path-Goal Theory
 Hersey and Blanchard’s Situational Leadership Theory
 House’s
House’s Path-Goal
Path-Goal Theory
Theory
 The Theory:
 Leaders provide followers with information, support, and
resources to help them achieve their goals
 Leaders help clarify the “path” to the worker’s goals
 Leaders can display multiple leadership styles

 Four types of leadership styles:

 Directive: focuses on the work to be done
 Supportive: focuses on the well-being of the worker
 Participative: consults with employees in decision making
 Achievement-Oriented: sets challenging goals
 Path
Path Goal
Goal Theory
Theory
Environmental
Contingency Factors

• TaskStructure
Formal
• Authority System
•Work Group

Leader Behaviour Outcomes

•Directive •Performance
•Supportive •Satisfaction
•Participative
Achievement
• Oriented

Subordinate
Contingency Factors

• Locusof Control
•Experience
•
Perceived Ability
 Hersey
Hersey and
and Blanchard’s
Blanchard’s Situational
Situational
Leadership
Leadership Theory
Theory
• This theory suggests, effective leader behaviour depends on the

readiness level of a leader’s followers.

• Readiness is defined as the extent to which a follower possesses the

ability and willingness (i.e., confidence, commitment and

motivation) to complete a task.

• This model specifies four leadership styles, which represent a

combination of task and relationship-oriented behaviours:

 Hersey
Hersey and
and Blanchard’s
Blanchard’s Situational
Situational
Leadership
Leadership (continued)
(continued)
• The four leadership styles are:

 Telling – The leader gives explicit directions about how tasks

should be accomplished.

 Selling – The leader provides both direction and support.

 Participating – The leader shares ideas with followers and

encourages participation in decision making.

 Delegating – The leader provides little direction or support.

 Hersey
Hersey and
and Blanchard’s
Blanchard’s Situational
Situational
Leadership
Leadership (continued)
(continued)
• In addition, the model highlights four stages of follower readiness:

 R1 – The followers lack ability and self confidence

 R2 – The followers lack ability but are willing to learn

 R3 – The followers have ability, but they lack self-confidence

 R4 – The followers have high ability and confidence

Applying
Applying the
the Situational
Situational Leadership
Leadership Theory
Theory
 Charismatic
Charismatic Leadership
Leadership
• Charisma is a Greek word, which means gift.

• A charismatic leader refers to someone who has been

endowed with exceptional gifts or talents.
•
• A charismatic leader will often gain followers through
personality rather than through power or authority.
Examples
Examples Of
Of Charismatic
Charismatic Leaders
Leaders
 Characteristics
Characteristics of
of Charismatic
Charismatic Leaders
Leaders
• Articulate a clear & appealing vision - Leaders have a vision,
expressed as an idealized goal that proposes a better future than the
status quo.

• Lead by example - Leaders set an example of exemplary behavior in

day-to-day interactions with followers.

• Sensitivity to follower’s needs - Leaders are sensitive to the

feelings and needs of their followers.

• Unconventional behavior – Leaders exhibit behaviors that are out

of the ordinary. That is, leaders use innovative strategies to achieve
their vision.
How
How Charismatic
Charismatic Leaders
Leaders Influence
Influence Followers
Followers
• Leader articulates an appealing and optimistic vision.

• Leader communicates high performance expectations and

confidence in follower ability.

• Leader uses slogans, symbols, ceremonies and stories

to influence followers.

• The leader expresses positive emotions - that is, he or she

is enthusiastic, confident and optimistic about attaining
his or her vision .
 Dark
Dark Side
Side of
of Charismatic
Charismatic Leaders
Leaders
• Charismatic leaders might use their charisma and influence to

further their own self-interests and seek power and position

even at the expense of their followers’ welfare.

• Such leaders profess strong attachment to their

organization and its people but privately are ready to

sacrifice them.
 Contemporary
Contemporary Views
Views of
of Leadership
Leadership

• Transactional Leadership

• Transformational Leadership

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 Transactional
Transactional Leadership
Leadership
• Transactional leadership involves:
Clarifying subordinates’ responsibilities
Rewarding them for accomplishing their goals
Correcting them for failing to meet objectives

• Transactional leadership involves managing – helping

organizations achieve their current objectives more
efficiently by monitoring, evaluating and rewarding
performance.
Characteristics
Characteristics of
of Transactional
Transactional Leadership
Leadership
• Contingent reward – The leader clarifies subordinates’ roles and
responsibilities and provides recognition and rewards when goals are
achieved.

• Management by exception - Leader only takes corrective action

when things go wrong.

• Laissez-Faire – Leader abandons his responsibilities. Specifically,

the leader:
Ignores problems
Ignores subordinates’ needs
Avoids making decisions
 Transformational
Transformational Leadership
Leadership
• Transformational leaders motivate followers to perform

above expectations and inspire them to put aside their

personal interests for the sake of the organization.

• Transformational leaders are change agents who

energize employees and direct them to a new set of

corporate values.
Characteristics
Characteristics of
of Transformational
Transformational
Leadership
Leadership
• Idealized influence - These leaders are admired, respected, and trusted
by their followers.

• Inspirational motivation - Leaders behave in ways that motivate those

around them by providing meaning and challenge to their followers’ work.

• Intellectual stimulation - Leaders stimulate their followers’ effort to be

innovative and creative by questioning assumptions, reframing problems,
and approaching old situations in new ways.

• Individualized consideration - Leaders provide support,

encouragement and coaching to their followers.
Transactional
Transactional && Transformational
Transformational
Leadership
Leadership
• Despite differences, transformational and transactional leadership are
complementary rather than competing.

• Most leaders engage in transactional forms of leader behaviour by

providing rewards & feedback contingent on performance.

• But exceptional leaders go beyond this and also engage in

transformational forms of leader behaviour.

• In other words, transformational leadership behaviours augment the

effects of transactional leadership behaviours.
Full
Full Range
Range of
of Leadership
Leadership Behavior
Behavior

11-32
 Developing
Developing Trust
Trust
• Trust refers to follower’s willingness to depend on the
leader based on the belief that the leader is:

Competent (refers to the skills and capabilities of the

leader)
Reliable (reflects consistency between words and
actions)
Open (implies that the leader is honest and forthright)
Concerned (refers to employees’ belief that the leader
cares about them)
 Outcomes
Outcomes of
of Trust
Trust
• High trust in the leader can lead to positive outcomes
such as:

Greater satisfaction and commitment

More organizational citizenship behaviours
Higher levels of job performance
 Suggestions
Suggestions for
for Building
Building Trust
Trust
Practice openness.
Be fair.
Speak your feelings.
Tell the truth.
Show consistency.
Fulfill your promises.
Maintain confidences.
Demonstrate competence.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 16–35

 Substitutes
Substitutes For
For Leadership
Leadership
• One approach to leadership suggests that situational variables can

be so powerful that they actually substitute for or neutralize the

need for supportive and instrumental leadership.

• Substitutes are situational variables that make leader behaviour

unnecessary or redundant (leader becomes irrelevant).

• Neutralizers are situational variables that prevent the leader from

displaying certain behaviours or nullify the effects of the leader’s

actions (leader becomes ineffective).
 Finding
Finding && Creating
Creating Effective
Effective Leaders
Leaders

• Selection

• Use tests to identify personal traits associated with leadership.

• Conduct personal interviews to determine candidate’s fit with the

job.

• Training

• Teach skills such as trust-building, mentoring and situation

analysis, which are necessary for employees to become effective

leaders.