Høgskolen i Oslo Organisation Development

Term paper:

Important Theories of Leadership and Management in organisations

Name:

Angela Gebhardt Franca Heinrici Alessio Pavan

Lecturer: Date:

Magid Al-Araki 27 April 2003

Contents page 1. Conclusion 3 3 4 7 9 11 2 . Introduction 2. Fiedler’s Contingency Model 5. A definition of LEADERSHIP and MANAGEMENT 3. Hersey-Blanchard Situational Theory 6. Blake / Mouton’s Managerial Grid 4.

• • • • Management is the process of getting things done through the efforts of other people. This term paper will deal with three very important theories and point out differences in these models and problems of applying them in reality. human interaction) A leader may have no formal title at all and rely on personal traits and style to influence followers. Intelligence: Creative and verbal ability including judgement. influencing and controlling the work of others. The most obvious differences are shown below. 3 . it is necessary to know what leadership is and what it means for a company. organising. reasoning and thinking capacity Decisiveness: Ability to make decisions and solve problems competently. because one who wants to become a leader has to have certain significant trait. Introduction Very often we can hear today how important good leadership is to run a business successfully. But can anybody become a leader? The common sense tells us: “NO!” This is of course true. A definition of LEADERSHIP and MANAGEMENT Very often management and leadership are referred to as the same thing.1. Leadership is influencing of others to do what he/she wants them to do.assurance: Extent to which the individual views himself or herself as capable of coping with problems.(Influencing others i. (Focuses on procedures and results) Management suggests more formality & manager refers to a position in an organisation. The first theory will be the “Managerial Grid” of Blake/Mouton. which are: • • • • • ”Supervisory ability: planning. Need for occupational achievement: The seeking of responsibility and the desire for success. Many famous people have also made up their mind about these issues and have developed different theories about leadership. But actually these two are different in some ways. 2. how can one evaluate the performance of a leader? These and many other questions arise when we think about leadership.e. Then we will go on with Fiedler’s Contingency Model and end with Hersey-Blanchard’s Situational Theory. Self. But why? Why do we need good leaders? Why is a good leader essential for running a business? What is leadership anyway? And most important of all. First of all though.

which will be described later on. Gordon.• Initiative: Ability to find new and innovative ways of doing things” [Judith R. 25. which are necessary to achieve goals. which are two important dimensions used to examine management behaviour and characteristics. The model conceptualises management styles and relations. the Managerial Grid is a behavioural theory.uq. In 1964.edu.au. It is also the direction and management of change as well as the creation of visions for the organisation. Blake/Mouton’s Managerial Grid Unlike the two theories. which tries to understand the different attitudes of managers toward the human resources and the other resources involved in the organisation. Another task is to motivate and lead people for success and to create conditions. Gordon. (See also grid on page 5) 4 . It uses two axis: “ Concern for People” and “ Concern for Task”.mech. Blake and Mouton elaborate a model. First. Blake/Mouton’s “Managerial Grid” will be dealt with. Autocratic The leader tells the worker what to do Participative The leader allows and expects workers participation [Judith R. When taken the two axes and all evolving possibilities together a matrix with 81 different management styles appears. According to Blake and Mouton five of the 81 styles are the most significant and important. two academics in the field of management published a book: “The Managerial Grid: key orientations for achieving production through the people”. 1990] is “influencing others to do activities to fulfil a shared goal” Leadership [www. 1990] Now that the basic leadership styles have been presented and the difference between leadership and management are explained the focus should be on the different theories mentioned in the introduction. Basically we can distinguish between four different styles of leadership. Democratic Leader seeks majority rule from workers Laissez-Faire Leader lets group members make all decisions 3. This is very important because a manager has to have the best skills and to be able to keep all the resources co-ordinated toward achieving the project’s goal.October 2002].

This kind of manager has a short life in responsible organisations. This kind of manager has a thoughtful attention to needs of people for satisfying relationships. Organisation production will be close to expectations but without exceeding them.com/~donclark/hrd/history/grid. but not excellent. Authority. Team management: (grid position 9. Organisation management: (grid position 5. which leads to a comfortable friendly organisation and work environment. They always have lots of social interaction and put service projects as well as company sports teams high on their list. Impoverished management: (grid position 1. which leads to an enhancement of the productivity.1) Managers in this grid position exert a minimum effort to get required work done and to sustain organisation membership. online 25. They get a work done in such a way that human elements interfere to a minimum degree. This manager develops a relationship of trust and respect with employees and others. There is also certain interdependence through a common stake.9) Here we find all the managers with a high concern for people and a low concern for production.[http://www. October 2002] Blake and Mouton describe the five shown management styles as the following: Country club management: (grid position 1.nwlink. They focus on the efficiency in operations with little concerns for individuals. 5 .5) These kinds of managers constantly try to balance the necessity to get out work with maintaining moral of people at a satisfactory level.9) This is the ideal manager identified by Blake and Mouton.html.1) All the managers who operate at the other extreme are included in this position. They have little concern for either the human element or the production level of the team.obedience management: (grid position 9.

In fact. how does his employees and his master rate you as a leader. Moreover the Managerial Grid encourages managers to devote more time on managing human resources. which are not supported by evidence in real organisations. does he get his job done. Strengths: • Marked a big shift in the focus of management work • Several studies give credibility to this model • Encourages managers to think about their own balance between two main areas of managerial concerns: task orientation and people orientation • By following this approach. lowers employee turnover and absenteeism and grants employee satisfaction. the team management style would not work in a crisis. and productivity) has been documented. is he growing his organisation. This approach implies that the most effective management style is team management style but this actually may not be the case in all the situations. It does not encourage managers to think and act flexibly according to the circumstances in which they are managing The theory of the Managerial Grid has been used for 35 years in training managers about working with people. that’s why managers should devote time to these more challenging resources. does he take care of his employees. 6 . But it is also fundamental to consider other factors to profile a manager. etc. trying to identify ways to adapt the behaviour according to different resources and circumstances.Blake and Mouton concluded that the first four styles are not the most effective. Like in any other theory one can find both strengths and weaknesses in the Managerial Grid. human resources are quite complex to measure and to allocate. Weaknesses: • • • • The Managerial Grid aims at identifying the most effective management style for all the situations. It is also important because it can help project managers look at managing projects and resources more effectively. project managers can focus more on the human side of the management equation. because sometimes there is no time to be sensitive to morale issues. because they usually spend more time managing easier resources. such as. while team management approach is the best style because it improves performances. No adequate relationship between behaviour and performance outcomes (satisfaction. morale. However.

He uses the least preferred co-worker (LPC) scale. 2001] “A leader can only be effective if the individual personality style is appropriately matched to a given set of situational variables. later called situational control. to involve. to motivate. They require the leader to interact with the employees. They encourage them to listen. Brown. Nicholas. and the Situational Leadership theory. to risk. This questionnaire is the main component of his theory. Situational theories include the Contingency Model. Then Fiedler developed a questionnaire to measure an individual in one is of the above categories. Nicholas. to credit. Fiedler’s Contingency Model Unlike behavioral theories.4. Fiedler’s contingency model postulates that the leader’s effectiveness is based on ‘situational contingency’. 1990] Fiedler’s contingency model includes 3 different elements and 2 different styles. The task is relatively routine or complex. situational theories tell us that effective leadership depends on the situation at hand.M. Brown. LowLPC or task-motivated leaders describe their least preferred co-worker in rejecting and negative terms.” [J. the Path-Goal theory. are: • • • a good or poor leader-member relation a high or low task structure and a strong or week position power The two different styles are based on the leader either task oriented or relation oriented. High or low formal authority. While many scholars assumed that there was one best style of leadership.” [Managing Business & Engineering Projects .“ [Ann E. “High-LPC or relationship-motivated leaders describe their least preferred co-worker in more positive terms and are concerned with maintaining good interpersonal relations.M. and give higher priority to the task than to interpersonal relations. on which the situation is measured on. to enrich.J. to care. to develop. to coach. 1990] These 3 variables are: • • • The work group accepts or rejects the leader. and to express concern for those who they manage. The elements. an instrument for measuring an individual’s leadership orientation using eighteen to twenty-five pairs of adjectives and an eight-point bipolar scale between each pair.” [ Ann E. 2001] 7 . or a match between the leader’s style and situational favourableness.

Brown. the situation has to be adapted to it or the person has to be replaced.mech. online 25 October 2002] Above Fiedler’s Model is shown and one can see what leadership style belongs to which combination of the three elements.” [Ann E.htm.6 and 7. A moderate control situation is one in which the leader has a medium degree of control. improving the effectiveness requires a change in the situation. 8 . either relation oriented or task oriented.Fiedler assumes that leadership style is fixed.2.edu.5. If the leadership style does not match the situation. Both task and relation oriented leaders can be effective if their orientation fits the situation. 2001] Others criticise the method of measuring leadership through the LPC model. [http://www.au/subjects/e4390/Em1mod08/sld041.3 and 8. Whereas relation oriented leaders do well in situations 4. that it is. The leaders effectiveness depends on the situation and therefore a leader can do something about their situations. For example is a situation in which the leader has a great deal of control and influence is a high control situation.uq. The model shows that task oriented leaders have the strongest positive effect in the situations 1. One major point of criticism is the fact that this theory implies that the only alternative for an unalterable mismatch between leader orientation and an unfavourable situation is changing the leader. Fiedler also assumes that since the personality and therefore the orientation are relatively stable. and a low control situation is one in which the leader's control and influence are relatively low. According to Fiedler there is no ideal leader. The leadership style is then matched with the situation defined by the three situational factors previously described.

and still manage them. The Hersey and Blanchard Leadership Model means that the developmental levels of a leader's subordinates play the greatest role in determining which leadership styles are most appropriate (leader behaviors).c om%2FAthens%2FForum%2F1650%2Fhtmlblanchard.html.. [Strunz H. Dorsch M. But surly one could use it as a complementary method to find out. Of course it should not be the only way to measure the effectiveness of a leader in a company. participating. leadership should be more relationship-motivated than task-motivated." Manager’s leadership style must be adaptable and flexible to meet the changing needs of employees and situation. 14. The Situational Leadership theory. created by Hersey and Blanchard. providing support & encouragement facilitate interaction involve follower in decision making [http://psychology.Their relevant skills. how the leader is performing and if there is need for a change. page 145] As the subordinate maturity increases. includes four situational leadership styles: telling. Maturity is assessed in relation to a specific task and has two parts: • • Psychological maturity .about.But in general this theory is a good way in evaluating the performance of a leader.com/gi/dynamic/offsite. According to this conceptualization. the ability to put up high goals. According to Paul Hersey. Hersey-Blanchard Situational Theory Hersey and Blanchard developed also a theory that bases the leadership style on the given situation. and delegating. Job maturity .10.geocities.Their self-confidence and ability and readiness to accept responsibility and be able to manage the given tasks.. technical knowledge and ability to carry responsibility. DIRECTIVE BEHAVIOR • • • one-way communication followers' roles spelled out close supervision of performance • • • • SUPPORTIVE BEHAVIOR two-way communication listening. a situational leader adapts "leadership behaviors to features of the situation and followers. It should be matched to the maturity of the subordinates. leader behaviors fall along (1) directive behavior and (2) supportive behavior.htm?site=http%3A%2F%2Fwww. selling.2002] 9 . 5.

uq. and encouragement to get the job done. online 09. four leadership styles result: 1.Putting the leadership behaviors identified by Blanchard together on a grid. – high relationship.htm. page 146] To determine the appropriate leadership style the leader must first determine the maturity level of his employees in relation to the specific task that the leader is attempting 10 . – high task. direction. – low relationship. – high task. and need a lot of help. 2001. The "selling style" is useful when group members are a little more responsible.au/subjects/e4390/Em1mod08/sld046. The "participating style" is a supportive style used when groups have the ability to do the job but may be unwilling to start or complete the task. The "telling style" is appropriate when the members are new or inexperienced. HIGH selling participating Relationship of behavior telling delegating LOW Task behavior Maturity of followers HIGH mature immature [Strunz H. Dorsch M. low task [http://www. high relationship 3... Dorsch M. low task 4. experienced.mech. 2001. page 146] There is one problem: To believe that the leader can ascertain the maturity of the employee and as a result of that chooses a specific leadership style.10. The "delegating style" is useful when group members are willing and able to take responsibility for directing their own behavior.Mouton Managerial Grid) with the Developmental Levels of subordinates to arrive at some conclusions about appropriate leadership styles. low relationship 2..edu.2002] The Blanchard model combines the behavior grid (similar to the Blake. and willing to do the task but do not have the necessary skills.. [Strunz H.

but find your own style and lead as best as you can! 11 . Once the maturity level is identified.dcccd. the appropriate leadership style can be determined.to accomplish. That is why it is impossible to judge one theory as the best and ultimate one. the leader should begin to reduce his or her task behaviour and increase relationship behaviour. [http://ollie. As the level of the employees' maturity increases. Its focus lies on the goals of a company and therefore changes from situation to situation. It is becoming more and more popular. But each company has to find the best suiting leadership or management style for itself and if necessary adapt to a changing situation. Each of them has advantages and disadvantages concerning different situations. but for us the three mentioned seemed to be the most important and used ones. one can see that none of them is perfect in every situation. There are still many other leadership and management theories. The important part about being a leader or a manager is not to stick to one of the styles. the leader should decrease not only task behaviour but also relationship behaviour. As the followers begin to move into an above average level of maturity. Conclusion After having a look at the three different styles.edu/mgmt1374/book_contents/4directing/leading/lead.2002] 6. One other management style for example is “Management by Objectives”.htm.10.online 14. One can conclude that each leader has to find its own style according to his own personality and the kind of company he/she is working for.

au/subjects/e4390/Em1mod08/sld041.com/msub_ioleader5..com/~donclark/hrd/history/grid. October 2002) http://www.about.. October 2002) http://ollie.htm (14. Nicholas. 2001 http://www.htm (9. Oldenbourg Verlag München Wien. Brown Biographical Dictionary of Management Thoemmes Press. 2001 J.com/~donclark/hrd/history/grid.geocitie s.htm (25.html (15.htm?site=http%3A%2F%2Fwww. Management & Organisational behaviour.uwo.com/docs/grid_revisited. 1990 Judith R Gordon.edu/mgmt1374/book_contents/4directing/leading/lead.uq. Prentice Hall International Editions. concepts & implementation.ca/business/blake.nwlink.M. Managing business & engineering projects.October 2002) http://psychology.dcccd.about.edu.htm (25. Allyn & Bacon.html (9. Management. October 2002) • http://workstar.uq.lib.com%2FAthens%2FForum%2F1650%2Fhtmlblanchard. October 2002) http://www.edu.mech.html (14.htm (16.October 2002) http://psychology.au/subjects/e4390/Em1mod08/sld046. Dorsch M.nwlink.October 2002) • http://www.October 2002) 12 .nwleadership.htm (16. 1990 Strunz H.html (15.mech.October 2002) http://www. October 2002) http://www.Bibliography • • • • • • • • • • • • Ann E.net/library/grid.com/gi/dynamic/offsite.

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