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Leadership
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Chapter 17: Leadership
Trait Theories
Behavioral Theories
University of Iowa Studies
Studies of Ohio State University
Studies of Michigan University 5
The Managerial Grid
2. Early Leadership Theories
Contingency Theories
Fielder Model
Hersey and Blanchard’s Situational
Leadership Theory
Path Goal
Leader Member Exchange Theories [LMX]
Contemporary Theories
Leader–Member Exchange (LMX) Theory
Transformational-Transactional Leadership
Team Leadership
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2. Early Leadership Theories
These early leadership theories focused on the leader
(leadership trait theories) and how the leader
interacted with his or her group members (leadership
behaviour theories).
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2. Early Leadership Theories
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2. Early Leadership Theories
3.6 Behavioural Theories
The four main leader behaviour studies are :
1.University of Iowa Studies
The University of Iowa studies explored three
leadership styles to find which was the most effective.
The Autocratic Style a leader who dictated work
methods, made unilateral decisions, and limited
employee participation, centralized authority.
The Democratic Style a leader who involved employees
in decision making, delegated authority, and used
feedback as an opportunity for coaching employees, it
contributed to both good quantity and quality of work.
The Laissez-faire Style leader let the group make 11
decisions and complete the work in whatever way it
saw fit.
2. Early Leadership Theories
Behavioural Theories
2.Studies of Ohio State University
Research at Ohio State University in beginning identify
over 1000 dimensions of leadership behavior, but later
on narrow down it to two categories of key dimensions
of leader behavior i.e.
i. Initiating Structure.
ii. Consideration.
According to the findings of these studies, leaders
exhibit two types of behaviors, people-oriented
(consideration) and task oriented (initiating structure),
to facilitate goal accomplishment. 13
2. Early Leadership Theories
2.Studies of Ohio State University
i. Initiating Structure
Defining and structuring of roles the extend to which
a leader is likely define and construction his/her role
and those of employees in the search for goals
attainment.
Assigning tasks, planning, setting goals, its outcome
is organization’s productivity & more positive
performance evaluation.
Assign group members to particular task, and
assures that work is completed and subordinates
perform their jobs
Deciding how tasks are accomplished, expect workers
to maintain definite standards of performance.
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Emphasizes and encouraging followers to accomplish
them the meeting deadlines.
2. Early Leadership Theories
2.Studies of Ohio State University
ii. Consideration
Leader who like to have job relationship by mutual
thrust, respect for employees ideas & regards for
their feeling and values good relationships with
followers;
Outcome: employee satisfaction, motivated & more
respect to their leader
The one who help employees with personal
problems.
Friendly & approachable.
Treat all employees equals & expresses appreciation
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& support.
2. Early Leadership Theories
Research findings:
Leaders who are employee oriented are strongly
associated with high group productivity and high
job satisfaction.
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2. Early Leadership Theories
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Behavioral Theories of Leadership (cont.)
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3. Contingency Theories of Leadership
Contingency Theories
The corporate world is filled with stories of leaders
who failed to achieve greatness because they
failed to understand the context they were working
in.”
Each looks at defining leadership style and the
situation, and attempts to answer the if-then
contingencies (that is, if this is the context or
situation, then this is the best leadership style to
use).
Contingency theories of leadership focus on
particular variables related to the environment that
might determine which particular style of
leadership is best suited for the situation. 24
3. Contingency Theories of Leadership
Fielder 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, a key factor in leadership success is an
individual’s basic leadership style, either task
oriented or relationship oriented
The leader’s effectiveness depends on both leader
style and situational characteristics:
Leaders have either a relationship-oriented style
or a task-oriented style, to determine the
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"situational favorableness" of particular situation
3. Contingency Theories of Leadership
Fielder Model
Effective groups depend upon a proper match
between a leader's style of interacting with
subordinates, and the degree to which the
situation gives control and influence to the
leader.
Fiedler suggested that effectiveness depends on the
situation, and made three key elements.
Leader-member Relations –
Task Structure –
Position Power –
Which determine how favorable a situation is for 26
leading
3. Contingency Theories of Leadership
Fielder Model
Leader-Member Relations – the degree of confidence,
trust, and respect subordinates have on their leader, this is
the level of trust and confidence that your team has in you.
A leader who is more trusted and has more influence with
the group is in a more favorable situation than a leader who
is not trusted.
Task Structure – the degree to which task assignments
are procedurized this refers to the type of task you're
doing: clear and structured, or vague and unstructured.
Unstructured tasks, or tasks where the team and leader
have little knowledge of how to achieve them, are viewed
unfavorably.
Leader's Position Power –influence derived from one's
formal structural position in the organization, this is the
amount of power you have to direct the group, and provide
reward or punishment. The more power you have, the more 27
favorable your situation. Fiedler identifies power as being
either strong or weak.
3. Contingency Theories of Leadership
Fielder Model
A situation is favorable to the leader when:
a) The leader is linked and trusted by the group
b) The task of the group is clearly defined.
c) The power of the leader to reward and punish with
organization backing is high.
Fiedler suggested that:
a) A Structured Style when situation very favorable or
very unfavorable.
b) A Supportive Style when situation is moderately
favorable to leader.
c) Group Performance will be contingent upon the
appropriate matching of leadership style and degree of
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favorableness of the group situation for the leader.
3. Contingency Theories of Leadership
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
Leaders must relinquish control over and contact
29 with followers as they become more competent.
3. Contingency Theories of Leadership
Hersey and Blanchard’s (SLT)
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3. Contingency Theories of Leadership
Hersey and Blanchard’s (SLT)
R4:
34 People are both able and willing to do what is
asked of them.
3. Contingency Theories of Leadership
Hersey and Blanchard’s (SLT)
The SLT says if followers are at R1 (unable and
unwilling to do a task), the leader needs to use the
telling style and give clear and specific directions;
if followers are at R2 (unable and willing), the leader
needs to use the selling style and display high task
orientation to compensate for the followers’ lack of
ability and high relationship orientation to get
followers to “buy into” the leader’s desires;
if followers are at R3 (able and unwilling), the leader
needs to use the participating style to gain their
support;
if employees are at R4 (both able and willing), the
leader doesn’t need to do much and should use the
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delegating style.
3. Contingency Theories of Leadership
Path-Goal Theory
It suggests that effective leaders motivate their
followers by giving them outcomes they desire when
they perform at a high level or achieve their work
goals.
Effective leaders also make sure their subordinates
believe that they can obtain their work goals and
perform at a high level, show subordinates the paths
to goal attainment, remove obstacles that might come
along the way, and express confidence in their
subordinates’ capabilities.
Leaders need to adjust the type of behavior they
engage in (directive, supportive, participative, or
achievement-oriented) to correspond to the nature of
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the subordinates they are dealing with and the type of
work they are doing.
3. Contingency Theories of Leadership
According to Path-Goal Theory there are following
four leadership behaviors:
The directive leader lets followers know what is
expected of them, etc.
The supportive leader is friendly and shows
concern for the needs of followers.
The participative leader consults with followers
and uses their suggestions before making a decision.
The achievement-oriented leader sets
challenging goals and expects followers to perform at
their highest level.
In contrast to Fiedler Model, Path-Goal Theory assumes
leaders are flexible and can display any of these 37
behaviors.
3. Contingency Theories of Leadership
Path-Goal Theory
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 that their goals are
compatible with those of the organization
Depending on the situation, leaders assume different
leadership styles at different times:
Directive leader
Supportive leader
Participative leader
Achievement
38 oriented leader
Path-Goal Model [Exhibit 17-4]
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3. Contingency Theories of Leadership
As Exhibit 17-4 illustrates, path-goal theory proposes two
situational or contingency variables that moderate the
leadership behaviour–outcome relationship: those in the
environment that are outside the control of the follower
(factors including task structure, formal authority system, and the
work group) and those that are part of the personal
characteristics of the follower (including locus of control,
experience, and perceived ability).
Environmental factors determine the type of leader
behaviour required if subordinate outcomes are to be
maximized; personal characteristics of the follower
determine how the environment and leader behaviour are
interpreted.
The theory proposes that a leader’s behaviour won’t be
effective if it’s redundant with what the environmental
structure
40 is providing or is incongruent with follower
characteristics.
4. Contemporary views of leadership
LEADER-MEMBER EXCHANGE [LMX] THEORY:
Leaders often develop relationships with each
member of the group that they lead, and leader–
member exchange theory explains how those
relationships with various members can develop in
unique ways.
The leader-member exchange theory of leadership
focuses on the two-way relationship (dyadic
relationships) between supervisors and subordinates.
The theory assumes that leaders develop an
exchange with each of their subordinates, and that
the quality of these leader-member exchange (LMX)
relationships influences subordinates' responsibility,
decision influence, access to resources and 41
performance
4. Contemporary views of leadership
LEADER-MEMBER EXCHANGE [LMX] THEORY:
LMX Premise
Because of time pressures, leaders form a special
relationship with a small group of followers: the
“in-group”.
This in-group is trusted and gets more time and
attention from the leader (more “exchanges”).
All other followers are in the “out-group” and get
less of the leader’s attention and tend to have
formal relationships with the leader (fewer
“exchanges”).
Leaders pick group members early in the
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relationship.
Leader-Member exchange Model
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4. Contemporary views of leadership
Transactional Leadership
The leader that lead primarily by using social
exchanges (or transactions), who guide or motivate
their followers in the direction of established goals by
clarifying role and task requirements,to work toward
established goals by exchanging rewards for their
productivity.
Transformational Leadership
Leader who inspire followers to transcend their own
self-interests for the good of the organization by
clarifying role and task requirements, stimulates and
inspires (transforms) followers to achieve
extraordinary outcomes, pay attention to the
concerns and developmental needs of individual
followers; change followers’ awareness of issues by
helping those followers look at old problems in new
ways; and are able to excite, arouse, and inspire
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followers to exert extra effort to achieve group goals.
4. Contemporary views of leadership
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4. Contemporary views of leadership
Transactional Vs Transformational leaders
Transactional and transformational leadership
shouldn’t be viewed as opposing approaches to
getting things done.
Transformational leadership develops from
transactional leadership.
Transformational leadership produces levels of
employee effort and performance that go beyond
what would occur with a transactional approach
alone.
Moreover, transformational leadership is more than
charisma, because the transformational leader
attempts to instill in followers the ability to question
not only established views but those views held by
the leader. 50
4. Contemporary views of leadership
Transactional Vs Transformational leaders
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4. Contemporary views of leadership
Team Leadership Characteristics:
Having patience to share information
Being able to trust others and to give up authority
Understanding when to intervene
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4. Contemporary views of leadership
Team Leadership
The role of team leader is different from the
traditional leadership role , “I’m supposed to teach
the teams everything I know and then let them make
their own decisions.”
The challenge for many managers is learning how to
become an effective team leader.
They have to learn skills such as patiently sharing
information, being able to trust others and to give up
authority, and understanding when to intervene.
effective team leaders have mastered the difficult
balancing act of knowing when to leave their teams
alone
57 and when to get involved.
5. Leadership issues in Twenty-First Century
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5. Leadership issues in Twenty-First Century
Types of Power. There are following six types of
power by French and Raven.
i-Coercive Power
This is the power to force someone to do something
against their will. It is often physical although other
threats may be used. It is hardily used in business,
some time in workplace bullying.
ii-Reward Power
Reward power is thus the ability to give other people
what they want, and hence ask them to do things for
you in exchange.
Rewards can also be used to punish, such as when they
are59
withheld. The promise is essentially the same: do
this and you will get that.
5. Leadership issues in Twenty-First Century
Types of Power
iii-Legitimate Power
Legitimate power is that which is invested in a role.
Kings, policemen and managers all have legitimate
power. The legitimacy may come from a higher power,
often one with coercive power.
iv-Expert Power
When I have knowledge and skill that someone else
requires, then I have Expert power. This is a very
common form of power and is the basis for a very large
proportion of human collaboration, including most
companies where the principle of specialization allows
large and complex enterprises to be undertaken.
Expert power is that which is used by Trades Unions
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when they encourage their members to strike for better
pay or working conditions.
5. Leadership issues in Twenty-First Century
Types of Power
v-Referent Power
This is the power from another person; it is the power
of charisma and fame and is wielded by all celebrities,
gained by a leader who has strong interpersonal
relationship skills.
vi-Negative Power [informational power]
This is providing information to a person that result in
them thinking/acting in a different way.
Information by itself may not be enough for this and
may hence be supported by an argument as to why the
information should be believed.
If the information is accepted then 'socially
independent change' occurs as the person continues
61to
believe this information to be true and acts
accordingly.
5. Leadership issues in Twenty-First Century
Developing Trust
An important consideration for leaders is building trust
and credibility, both of which can be extremely fragile.
The main component of credibility is honesty.
If people are going to follow someone willingly, they
first want to assure themselves that the person is
worthy of their trust.”
In addition to being honest, credible leaders are
competent and inspiring.
They are personally able to effectively communicate
their confidence and enthusiasm.
The assessment of a leader’s honesty, competence,
and
62 ability to inspire by his or her followers is
Credibility of a Leader.
5. Leadership issues in Twenty-First Century
Trust
The belief of followers (and others) in the integrity,
character, and ability of a leader
Five dimensions that make up the concept of trust:
_ Integrity: honesty and truthfulness, the most critical
& important dimensions.
_ Competence: technical and interpersonal knowledge
and skills
_ Consistency: reliability, predictability, and good
judgment in handling situations
_ Loyalty: willingness to protect a person, physically
and emotionally
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_ Openness: willingness to share ideas and
information freely
5. Leadership issues in Twenty-First Century
Trust
Employees have to trust managers to treat them
fairly, and managers have to trust employees to
conscientiously fulfil their responsibilities.
leaders have to lead others who may even be
physically separated—members of cross-functional or
virtual teams, individuals who work for suppliers or
customers, and perhaps even people who represent
other organizations through strategic alliances.
Many of these relationships, in fact, are fluid and
fleeting. So the ability to quickly develop trust and
sustain that trust is crucial to the success of the
relationship.
It increases job performance, organizational
citizenship
64 behaviors, job satisfaction, and
organization commitment.
Building Trust
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5. Leadership issues in Twenty-First Century
Empowering Employees
Managers are increasingly leading by empowering their
employees in decision-making discretion of workers
such that teams can make key operating decisions in
developing budgets, scheduling workloads, controlling
inventories, and solving quality problems.
One reason more companies are empowering
employees is the need for quick decisions by those
people who are most knowledgeable about the issues—
often those at lower organizational levels.
In order to cope with the increased work demands,
Quicker responses to problems and faster decisions
managers had to empower their people.
Although
66 empowerment is not a universal answer, but
it can be beneficial.
5. Leadership issues in Twenty-First Century
Leading Across Cultures
Effective leaders do not use a single style, they
adjust their style to the situation.
National culture is certainly an important situational
variable in determining which leadership style will be
most effective. What works in China isn’t likely to be
effective in
Universal Elements of Effective Leadership
Vision
Foresight
Providing encouragement
Trustworthiness
Dynamism
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5. Leadership issues in Twenty-First Century
leader leader-member
leadership relations