HBO (Chapter 5: Leadership and Its Changing Development in Organizations)
Introduction
Leadership
 Ability of one to unite people to attain organization
objectives collectively
 Keith Davis: ability to persuade others to seek defined
objectives enthusiastically. Leadership brings about the
realization of potentials that exist in organization and
its constituents
 Plays an important role in management
 Successful leadership depends on the actuations
rather than on the character traits of a person
 Variables that determine the nature of appropriate
leadership behaviour:
o Leader
o Followers
o Situations
 Should be distinguished from management as
leadership primarily deals with influence
Leader
 Number of roles to play
 Has to exercise different styles of leadership that are
compatible to those he works with
 Must possess the ability to work effectively with others
and to bring teamwork
 Wields certain organizational powers and employs
strategies to gain support and allegiance among his
followers
 Exercise supervisory functions and to develop a
participative form of management
 May or may not be a manager
 Key personnel or human resources in an organization
 Appropriate for a leader:
o Stay at the background
o Don’t pressure the group
o Keep quiet so others may express themselves
o Keep calm at times of crisis
o Delay decision-making to carefully consider issues
and problems
Good leadership -> Good and better employees, products,
and services -> Benefits members of the society
Participative Management (under leadership)
 Achieved through a number of participative programs
Management
 Involves planning, organizing, staffing, directing, and
controlling
 Need to cope with changes brought by advances in
science and technology
 Several types of resistance to change have to be
expected
 Certain techniques have to be employed to build
support for change
Manager
 Has formal authority by virtue of his or her position or
office
 May or may not be an effective leader
A manager is not necessarily a good leader just as a good
leader may or may not be a good manager
Excellent manager is expected to have reasonably high
leadership ability
Task and Psychological Support
 Leaders provide both task and psychological support
for their followers
 Task: Help in assembling resources and other elements
needed to get jobs and projects done
 Psychological: Stimulate their followers to accomplish
their respective jobs effectively and efficiently
Role Modeling
 Supervisors – supervise as they themselves are subject
to supervision
 Leaders – serves as role models for their subordinates
 Type of Style:
1. Autocratic Leadership
2. Participative Leadership
3. Free-reign Leadership
Autocratic Leadership
 Centralization of power and decision-making in the
leader
 Leader has full authority and responsibility for what
transpires in his jurisdiction
 Basically negative in nature
 Positive features: rewards to subordinates
 Benevolent autocrat – autocratic leader
 Advantages of autocratic leadership:
1. Strong motivations and reward for the leader
2. Results in quick decisions
3. Less competent employees can be employed to
carry out orders
 Disadvantages of autocratic leadership:
1. Frustration, dissatisfaction, fear and conflict
develop easily
2. Employees feel that they produce on account of
pressures rather than being spurred by
motivations
3. Creativity of employee is stifled
Participative Leadership
 Decentralization of authority
 Decisions are from followers and participation by them
 Leader and the constituents of the group act as social
unit
 Encourages freedom of expression
 Current trend: wider use of participative management
 Supportive and collegial model of organizational
behaviour
 Democratic: Consultative and Participative
Free-reign Leadership
 Generally avoids power and responsibility
 The group establish their own goals and solve their
problems
 Members take care of their own training and
motivation
 Units tend to proceed at cross-purposes that bring
chaos
 Work in reverse with autocratic form of leadership
Leadership styles with employees
 2 different styles of leadership in terms of
consideration and structure:
1. Employee orientation
2. Task orientation
 Employee-oriented leaders – concerned with the
human needs of his employees resulting to satisfaction
 Structured or task-oriented leaders – get results by
keeping their personnel busy with great productivity
Trait Approach
 Scientific study of leadership began with a focus on the
traits of effective leaders
 “Great Man” Theory – effective leaders are born, not
made
 Leadership trait research examined the ff:/ Subjects of
empirical research:
o Physical traits - height
o Mental traits – intelligence
o Social traits - personality
 Significant associations between individual traits and
measures of leadership effectiveness
 Initial conclusion: there were no universal traits that
consistently separated effective leaders from others
 Ralph Stogdill (1948): review of leadership literature,
existing research had not demonstrated the utility of
the trait approach
 Problems of early trait research:
o Measurement theory at the time was not highly
sophisticated
o Little was known about psychometric properties
of the measures
o Relied on samples of low-level managers
o Largely theoretical offering no explanations
o Did not consider the impact of situational
variables that might moderate relationship
between leadership traits and measures of leader
effectiveness
The Ohio State Studies
 Beginning of the 1950s – disenchantment with the trait
approach
 Focus of leadership: leader traits -> leader behaviours
 Premise: leadership behaviours > leadership traits
 2 most famous behavioural leadership: (1940s to
1950s)
1. Ohio State University
2. University of Michigan
Ohio State University
 Utilized the Leader Behavior Description Questionnaire
(LBDQ)
 Answers to questionnaire were factor-analyzed to
determine if common leader behaviours emerged
across samples
 Conclusion: there were two distinct aspects of
leadership that describes how leaders carry out their
role
 2 factors:
1. Initiating structure – also called as task-oriented
behaviour, involves planning, organizing, and
coordinating the works of subordinates
2. Consideration – showing concern for
subordinates
University of Michigan
 Conclusion: employee orientation and general instead
of close supervision yielded better results
 Rensis Likert: developed four “systems” of
management; he advocated System 4
 System 4 – participative-group system; the most
participatory set of leader behaviours
Managerial (Leadership) Grid
 Concept based largely on behavioural approach to
leadership effectiveness
 Developed by Robert Blake and Jane Mouton
 Combines “concern for production” with “concern for
people”
 Major consulting tool and was the basis for a
considerable amount of leadership on the corporate
world
 Presents 5 alternative behavioural styles of leadership
People
Production
Impoverished Management – neither concern
“Country-club” Manager
“Task” Manager
“Middle-of-the-road” Manager – balance
“Team Management” – high concern for both; best
leadership approach
Fiedler’s Theory: The Contingency Model of
Leadership
 Contingency or situational theories of leadership –
propose that the organizational or work group context
affects the extent to which given leader traits and
behaviours will be effective
 1960s to 1970s
 4 of the well-known contingency theories:
1. Fiedler’s contingency theory
2. Path-goal theory
3. Vroom-Yetton-Jago decision-making model of
leadership
4. Situational leadership theory
Fiedler’s Contingency Theory
 1967, first to specify how situational factors interact
with leader traits and behaviour to influence leadership
effectiveness
 “favourability” of the situation determines the task- and
person-oriented leader
 Favorability is determined by:
1. Respect and trust that followers have for the
leader
2. Extent to which subordinates’ responsibilities can
be structured and performance measured
3. Control the leader has over subordinates’ rewards
 Task-oriented leaders – more effective in highly
favourable or unfavourable situations
 Person-oriented leaders – more effective in
moderately favourable or unfavourable situations
 Fiedler claims that a leader’s effectiveness is
determined by the interaction of employees’
orientation with 3 variables:
1. Followers
2. Task to be undertaken
3. Organization
 Such variables may be referred to as:
1. Leader-member relations – manner in which the
leader is accepted by the group
2. Task structure – degree to which one specific
way is required to do a piece of work
3. Leader position power – organizational power of
the leader
Leaders as Followers
 Leaders are also followers because they similarly
report to someone else on top of them
 To be a good leader, one must be a good follower
 Ability to follow is one of the requirements to qualify
for good leadership
Leadership use of skills
 3 different types of skills are employed by leaders:
1. Technical skills – individual’s knowledge and
ability pertaining to certain processes or
techniques; things
2. Human skills – ability to work effectively with
others and to bring teamwork; major behavioural
role played by leaders; people
3. Conceptual skills – ability to think in terms of
models, frameworks and broad relationships for
long-range planning; ideas
Goal Setting
 Concerned with the identification of targets, as well as
long and short-term objectives, towards which
performance is directed
 At least 3 steps are required in goal setting:
1. Definiton of goals
2. Setting specific goals
3. Obtaining feedback about goal accomplishments
Goal Definition
 Proper goal definition demands that the leader explains
the underlying intentions and their justification
Specific Goals
 Goals must be specific so that employees will have a
basis for assessing what they have achieved and feel a
sense of accomplishment
Feedback about accomplishments
 Well-defined goals serve as yardsticks in measuring the
extent of nearness to established goals
 Job feedback – generate better performance among
the team members or group
The Vroom Model
 Vroom-Yetton-Jago decision-making was introduced by
Victor Vroom and Phillip Yetton (1973) and revised by
Vroom and Jago (1988)
 Focuses primarily on the degree of subordinate
participation that is appropriate in different situations
 Emphasizes the decision-making style of leader
 5 types of leader decision-making styles:
o AI – strongly autocratic
o AII
o CI
o CII
o G – strongly democratic
 The appropriate style is determined by answers to up
to eight diagnostic questions such as:
o Importance of decision quality
o Structure of the problem
o Whether subordinates have enough info to make a
quality decision
o Importance of subordinate commitment to the
decision
 Criticized for its:
o Complexity
o Assumption that decision makers’ goals are
consistent with organizational goals
o Ignoring the skills needed to arrive at group
decisions to difficult problems
The Blanchard (Situational) Model
 Situational leadership theory introduced in 1969 and
revised in 1977 by Hersey and Blanchard
 The key contingency factor affecting leaders’ choice of
leadership style is the task-related maturity of the
subordinates
 One of the better-known contingency theories of
leadership despite it being criticized on theoretical and
methodological grounds
 Subordinate maturity – ability of subordinates to
accept responsibility for their own
 Classifications of leader behaviours (2 broad
classes)
o Task-oriented behaviours
o Relationship-oriented behaviours
The Path-Goal Model of Leadership
 Goal-setting has led to a path-goal view of leadership,
an outcome from the expectancy model of motivation
 Expectancy model states that valence (desire to achieve
a goal) X expectancy (strength of the belief that specific
act will lead to desired goal) = motivation
 Path-goal theory was first presented in 1971
Administrative Science Quarterly article by Robert
House
 The subordinate’s characteristics and the
characteristics of the work environment determine
which leader behaviours will be more effective
 Important environmental characteristics:
o Nature of task
o Formal authority system
o Nature of work group
 4 different leader behaviours:
o Directive leadership
o Supportive leadership
o Participative leadership
o Achievement-oriented leadership
 Leaders can establish the path-goal relationship
through the following ways:
1. Gibing better reward for goal attainment
2. Providing feedback about goal accomplishments
3. Improving or greasing the path toward the goal
4. Providing the needed resources and training and
removing barriers along the way
 Related to goal-setting and the path-goal idea is what is
referred to as management by objectives

Styles of Leadership
 Leaders may use negative or positive methods of
approach
 Positive leadership – higher job satisfaction;
cooperation
 Negative leadership – considered as “bosses” rather
than leaders
Effective Supervision
 Supervisors occupy lowest management level in
organizations; points of contact between the
management and the workers; keystones in the
structure of organization
 The supervisor, among other things:
1. Creates a climate conducive to sound human
relationship
2. Develops desirable attitudes
3. Interprets and implements company policies
4. Trains new as well as older employees to work
efficiently, effectively and safety
5. Counsels and maintains discipline among
employees
6. Recommends personnel actions such as promotion
7. Plans and maintains time and work schedules
8. Uses his knowledge of machine and equipment
capacities
9. Makes sure of securing good quality products and
services
10. Coordinated departmental activities to meet goals
 The Supervisor’s Leadership Role
1. Key person in management – key men directing
the accomplishment of work
2. Middle Road Supervisor – supervisors are caught
between 2 social forces, management and labor
3. The Marginal Supervisor – left out of or is at the
margin of the principal activities and matters
4. As Another Worker – no authority and devoid of
the right to make decisions
5. The Behavioral Specialist – look after the human
side of operations
NOTE: pp. 208 to 209
 Duties undertaken by supervisors and things they
do in carrying out managerial responsibilities:
1. Establishment of policies
2. Planning of ways to implement them
3. Resolution of conflicts from the implementation
 Problems on which supervisors spend their time
(by Bredrord Boyd and Burt Soanlan) supervisors exert
the most pressure on the ff problems:
1. Meeting tight production schedule (supervisor’s job
is to get things done)
2. Keeping production up to establish efficiency
standards (to keep cost in line or within reasonable
levels)
3. Winning and maintaining the cooperative attitude
of employees (how to get things done at the right
time, place, and way)
 Why supervisors fail (National Management
Association of the United States) 6 supervisory pitfalls:
1. Poor personal relations with workers or with
other management people
2. Individual shortcomings like lack of initiative
3. Lack of understanding of the management’s point
of view
4. Unwillingness to spend the necessary time and
effort to improve
5. Lack of skill in planning and organizing work
6. Inability to adjust to new and changing condition
Positive Personal Attributes of an Effective Leader
10 positive personal attribute of an effective leader
(Myra Jucutan): The leader is/must:
1. Seen as partner, one who is committed to the best
interest of the individual and the group
2. Free from any bias and has no favouritism
3. Has the patience and the time to listen
4. Welcomes personnel to the organization
5. Acts as mentor and coach
6. Must be honest and trustworthy
7. Must be flexible and compassionate
8. Must show that he is determined to do what is right
9. Be always calm, patient, tolerant and understanding
10. Always show positive attitude to change
Development of Participation
 Participative style of management is important for
effective leadership
Nature of Participation
 Participation – psychological effect in employees who
belongs to the support of management; mental and
emotional involvement
 3 important ideas or features that characterize
participation are:
 o Mental and emotional involvement, Motivation to
contribute, Acceptance of responsibility
Mental and Emotional Involvement
 Mental and emotional involvement > muscular activity
 Psychological > physical
 Person’s whole being > one’s skill
 Ego involved > task-involved
Motivation to Contribute
 Participation – share their initiatives and creativity,
individuals release their own resources, two-way social
exchange
Acceptance of Responsibility
 Participation – social process where people get self-
involved; people say “we” not “they”; refer to problems
as “ours” not “theirs”
A Sharing Process
 Participation – mutual sharing process among
managaers and employees
Increase in Power and Influence
 Participation – increase the power of both managers
and employees; managerial powers depend mostly on
employees’ trust in management
Prerequisites for Participation (K. Davis):
1. Adequate time to participate
2. Potential benefits of participation should be
comparatively more than the costs it will entail
3. Relevance to employees’ interest
4. Employees’ competence to deal with the subject
5. Mutual ability to communicate
6. No feeling of threat to either party
7. Participation within the area of job freedom
Benefits of Participation (Keith Davis)
1. Higher output
2. Better quality of work
3. More suggestions
4. Improved motivation
5. Feeling of acceptance
6. Greater self-esteem
7. Higher job satisfaction
8. Greater cooperation
9. Reduced stress
10. Greater commitment to goals
11. Better acceptance of change
12. Reduce turnover
13. Less absence
14. Better communication
Programs for Participation (K. Davis) Participative
Programs
1. Consultative Management
2. Democratic Management
3. Work committees
4. Suggestion programs
5. Module- management committees
6. Codetermination activities
Consultative Management
 Managers consult with their employees to encourage
them to deliberate upon issues; display humility
Democratic Management
 Management refers a number of major decisions to
employees’ groups for discussion; “group dynamics”;
consensus and the one-person, one-vote ideas
Work Committees
 “production committees”, groups organized to consider
job problems, other types of work committees include
labor-management committees, work-improvement
task forces, quality control committees or circles and
safety committees
Suggestion Programs
 Formal plans designed to encourage individual
employees to suggest work improvements
Middle-Management Committees
 Group to improve participation of managers below top
management levels; “multiple management”
 Potential benefits derived from multiple management:
1. Develops skills for junior executives
2. Trains them for top management
3. Encourages growth
4. Develops a spirit of management cooperation
5. Brings new, creative ideas to top management
6. Encourages careful study of policy issues
7. Encourages junior executives to take responsibility
8. Broadens junior executive experience
9. Improves participation
Industrial Democracy
 Basic philosophy: institutionalize the participation of
workers in management to encourage cooperation
 Lower levels industrial democracy is applied through
work councils
 Top level it is called codetermination
Attitudes of Labor Unions towards Participation
 Labor unions- nurse the apprehension that
participation will draw loyalty of workers away from
the union and closer to management; remain aloof to
express disagreement
Limitations of Participation
 Difficulty in policy matters
 Some workers expect to be consulted on every issue; if
not consulted they develop resentments and become
uncooperative
 Supervisors find difficulty in adjusting to participation
because traditional authority is threatened
 May lead to manipulation of employees and to impose
conformity