OB Unit 5: Leadership

Leadership: The ability to influence a group towards the achievement of goals.

Management: Use of authority inherent in designated formal rank to obtain compliance from organizational
members.

Traits Theories of Leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.

Leadership Traits:

• Ambition and energy

• The desire to lead

• Honest and integrity

• Self-confidence

• Intelligence

• High self-monitoring

• Job-relevant knowledge

Limitations of Trait Theories

• No universal traits found that predict leadership in all situations.

• Traits predict behavior better in “weak” than “strong” situations.

• Unclear evidence of the cause and effect of relationship of leadership and traits.

• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.

• Trait theory: Leaders are born, not made.

• Behavioral theory: Leadership behaviours can be taught.

For class discussion (Dr. Feza T. Azmi)

Behavioural Theory-Ohio State Studies

Dimensions of Leader Behaviour

Initiating Structure: The extent to which a leader is likely to structure his or her role and those of subordinates
in the search for goal attainment. High IS leaders emphasize meeting goals performance targets etc.

Consideration: The extent to which a leader is likely to have job relationships characterized by mutual trust,
respect for subordinate’s ideas, and regard for their feelings. Such leaders are people-oriented, emphasize
cooperation and consensus-building.

Leaders high in IS and consideration tend to achieve high employee performance and satisfaction.

University of Michigan Studies

Dimensions of Leader Behaviour

Employee-Oriented Leader: Emphasizing interpersonal relations; taking a personal interest in the needs of
employees and accepting individual differences among members.

Production-Oriented Leader: One who emphasizes technical or task aspects of the job.

Employee oriented leaders were associated with high employee productivity and job satisfaction.

The
Managerial/
Leadership
Grid
(Blake and Mouton)

For class discussion (Dr. Feza T. Azmi)

Scandinavian Studies

Researchers in Finland and Sweden question whether there are only two dimensions that capture the essence of
leadership behavior. Their premise is that in a changing world, effective leaders would exhibit development-
oriented behavior.

Development-Oriented Leader: One who values experimentation, seeking new ideas, and generating and
implementing change.

Development-oriented behavior is more directly related to employee effectiveness and satisfaction.

Summary of Behavioural Studies

Although behavioural theories talk about successful leadership behaviours, many a times their propositions are
not found to be true.

They have ignored situational factors in determining success.

Contingency theories assert the importance of situational factors in determining leadership success.

Contingency Theories

Fiedler’s Contingency Model: The theory that effective group performance depends on a match between a
leader’s style of interaction and the degree to which the situation gives control and influence to the leader.

Identifying Leadership Styles: Key factor in leadership success is one’s leadership style.

Least Preferred Co-Worker (LPC) Questionnaire: An instrument that purports to measure whether a person is
task- or relationship-oriented. It asks respondents to describe one person they least enjoyed working with on a
scale of 1-8 using various contrasting adjectives. If the least preferred person is rated very low-the respondents’
leadership style is task-oriented, otherwise relationship-oriented.

Defining the Situation: Three factors that determine situation

Leader-Member Relations: The degree of confidence, trust, and respect subordinates have in their leader (good-
poor).

Task Structure: The degree to which the job assignments are procedurized/structured (high-low).

Position Power: Influence derived from one’s formal position in the organization; includes power to hire, fire,
discipline, promote, and give salary increases (strong-weak).

Based on the three variables, leaders can face 8 different situations. Task-oriented leaders are more successful in
very favourable and very unfavourable situations and relationship-oriented leaders are successful in moderate
situations.

For class discussion (Dr. Feza T. Azmi)

 Findings from Fiedler Model

Given this model,

¾ leaders need to be matched with situations.

¾ Change leaders to suit situation (have several leaders )

¾ Change situation to match leaders

The model is supported by various research studies.

Yet, there are practical problems in implementing the model.

It is quite complex and difficult to apply.

There are difficulties in measuring both leadership style and situational factors.

Cognitive Resource Theory: Fiedler & Garcia

Stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on
the leader.

• A leader’s intellectual abilities correlate positively with performance under low stress and negatively
under high stress- intelligent leaders perform better under low stress.

• A leader’s experiences correlate negatively with performance under low stress and positively under high
stress- experienced leaders perform better under high stress.

For class discussion (Dr. Feza T. Azmi)

 Hersey & Blanchard Situational Leadership Theory
A contingency theory that focuses on followers’ readiness-
ability & willingness to work. Leader’s effectiveness
depends on matching his style to followers’ readiness
(intuitive appeal of the theory).

Unable and Unable but Able and Able and

Unwilling Willing Unwilling Willing

Follower readiness:
ability and willingness

Leader: decreasing need

for support and supervision

Directive High Task and Relationship Supportive Monitoring

Orientations Participative

Leader–Member Exchange (LMX) Theory

Leaders use different styles with different people. They create in-groups (favourites/trusted followers- who get
more attention and receive special privileges) and out-groups (less-favoured/ less-trusted/less privileged).

Subordinates are chosen for in-group status if they have similar characteristics as leader or if they are competent.

These followers will have higher performance ratings, less turnover, and greater job satisfaction. The theory
draws from the idea of ‘self-fulfilling prophesy’ or Pygmalion effect. LMX theory has ample research evidence.

Leader-Member Exchange Theory

For class discussion (Dr. Feza T. Azmi)

Path-Goal Theory

¾ It is the leader’s job to assist followers in attaining goals and to provide them the direction and support to
ensure that their goals are compatible with organizational goals.

¾ Effective leaders clarify the path for followers and also remove roadblocks. There are 4 types of leader
behaviour:

ƒ Directive: lets followers know what is expected of them, schedules work and gives guidance

ƒ Supportive: is friendly and shows concern for needs

ƒ Participative: consults before making a suggestion

ƒ Achievement-oriented: sets challenging goals and expects high performances.

A leader can display any or all of these behaviours. A leaders behaviour depends on 2 contingency variables:
environmental factors and subordinate related factors.

The Path-Goal Theory

Path-Goal Theory

¾ Directive leaders are more successful when task structures are ambiguous and employee abilities are high

¾ Supportive leaders are more successful when tasks are well structured and employees abilities are low.

¾ Participative leaders are more successful in work groups and when employees have internal locus of
control.

¾ Achievement-oriented are also successful when tasks are unstructured and employees have external locus
of control.

The theory has empirical support but it may fail if leader does not identify the right contingency variable
operating at a time.

For class discussion (Dr. Feza T. Azmi)

Leader-Participation Model (Vroom & Yetton)

¾ A leadership theory that related leadership behaviour and participation in decision-making.

¾ It provides a set of rules to determine the form and amount of participative decision making in different
situations.

¾ Leaders may make decisions themselves or involve their followers participation. This depends on 12
contingency variables.

¾ The model has received encouraging response although it has been criticized for its overall complexity
and lack of practical applicability.

Contingency Variables in the Leader-Participation Model

1. Importance of the decision

2. Importance of obtaining follower commitment to the decision

3. Whether the leader has sufficient information to make decision

4. How well structured the problem is

5. Whether an autocratic decision would receive follower commitment

6. Whether followers “buy into” the organization’s goals

7. Whether there is likely to be conflict among followers

8. Whether followers have the necessary information to make decision

9. Time constraints on the leader that may limit follower involvement

10. If costs to bring geographically dispersed members is justified

11. Importance to the leader of minimizing the time to make the decision

12. Importance of using participation as a tool for developing follower decision skills

For class discussion (Dr. Feza T. Azmi)