Organization and Management

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 6 – Org Man Subject Teacher: Kenny Jones A. Amlos

Functions of Management: Leading

Learning Objectives:

At the end of the lesson, the student should be able to:

a. Define Leading;
b. Differentiate formal from informal leadership; and
c. Identify leadership theories;

“Leaders aren’t born, they are made. And they are made just like anything else, through hard work.
And that’s the price we’ll have to pay to achieve that goal, or any goal.”
– Vince Lombardi

Leading, as a management function, combines directing and leadership. Directing is the

process by which managers instruct, guide, and monitor the performance of employees. Directing
entails imposing protocols and measures that must be followed by the members of the organization,
setting the overall tone that defines coordination and cooperation within the company. On the other
hand, Leadership refers to the process of social influence that enables a person to encourage others
and enlist their aid and support in the performance of tasks and in achieving a particular goal.
Leadership is not primarily based on power and authority but is a product of social interaction and
defined by personal characteristics such as charisma, intelligence, and other traits.

Types of Leader base in the source of power:

1. Formal leaders are formally appointed or elected to direct and control the activities of the
subordinates. He is a person created by the formal structure, enjoys organizational authority and is
accountable to those who have elected him in a formal way. The formal leader has a two-fold
responsibility. On the one hand, he has to fulfil the demands of the organization, while on the other
he is also supposed to help, guide and direct his subordinates in satisfying their needs and
aspirations.

The authority that this kind of leader possesses is called position power which is based on a
manager’s official status in the organization’s hierarchy of authority.

Sources of position power:

a. Reward power- their capability to offer something of value.

b. Coercive power- their capability to punish or withhold positive outcomes.
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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 6 – Org Man Subject Teacher: Kenny Jones A. Amlos

c. Legitimate power- organizational position or status confers the right to control those in
subordinate positions.

2. Informal leaders are not formally recognized. They derive authority from the people who are under
their influence. In any organization we can always find some persons who command respect and
who are approached to help, guide and protect the informal leaders have only one task to
perform, i.e., to help their followers in achieving their individual and group goals. Informal leaders
are created to satisfy those needs which are not satisfied by the formal leaders. An organization
can make effective use of informal leaders to strengthen the formal leadership.

The source of power of this type of leader is called personal power which is based on the unique
personal qualities that a person brings to the leadership situation.

Sources of personal power:

a. Expert power is the capacity to influence others because of one’s knowledge and skills.
b. Referent power is the capacity to influence others because they admire you and want to
identify positively with you.

Leadership Functions:

1. Setting Goals: A leader is expected to perform creative function of laying out goals and
policies to persuade the subordinates to work with zeal and confidence.

2. Organizing: A leader has to create and shape the organization on scientific lines by assigning
roles appropriate to individual abilities with the view to make its various components to
operate sensitively towards the achievement of enterprise goals.

3. Initiating Action: A leader has to take the initiative in all matters of interest to the group. He
should not depend upon others for decision and judgment. He should float new ideas and his
decisions should reflect original thinking.

4. Coordination: A leader has to reconcile the interests of the individual members of the group
with that of the organization. He has to ensure voluntary co-operation from the group in
realizing the common objectives.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 6 – Org Man Subject Teacher: Kenny Jones A. Amlos

5. Direction and Motivation: A leader is to guide and direct his group and motivate people to do
their best in the achievement of desired goals, he should build up confidence and zeal in the
work group.

6. Link between Management and Workers: A leader works as a necessary link between the
management and the workers. He interprets the policies and programs of the management to
his subordinates and represents the subordinates’ interests before the management. He can
prove effective only when he can act as the true guardian of the interests of his subordinates.

The Leadership Theories:

1. Early Leadership Theories

a. Trait Theory- a theory based on leader traits or personal characteristics that differentiate
leaders from followers (leaders are born)

The trait theorists have identified a list of primary traits a leader should possess:

(1) Intellectual breadth

A leader should be intelligent enough of understanding the context and contents of his
position and function. He should be able to grasp the dynamics of environmental
variables, both internal as well as external, which affect the activities of the enterprise.
He should also have technical competence and sound general knowledge.

(2) Ability to admit error

A leader does not cover up his or her mistakes, and takes responsibility for them.

(3) Emotional Stability

A leader is calm and confident during stressful times.

(4) Good interpersonal skills

A leader is bros-minded and is knowledgeable about wide range of areas.

b. Behavioral Theory - a theory that focuses on the behavior, action, conduct, demeanor, or
deportment of a leader instead of his or her own personality traits (leaders are made).
Under this approach leadership is described as what leaders do instead of what they are.
This theory states that a leader to be effective should perform his function in such a way
that will enable the group to attain its goals.

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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 6 – Org Man Subject Teacher: Kenny Jones A. Amlos

2. Contemporary Leadership Theories (Contingency Theories)

a. Fiedler Model - a theory based on the assumption that a leader’s effectiveness is
dependent on the extent to which a leader’s style is fitted to actual situations in the
organization’s internal and external environment. Here, situational control is also exhibited.

b. Hersey-Blanchard Model - a theory proposed by Paul Hersey and Ken Blanchard that
focuses on subordinates’ readiness or the extent to which subordinates have the ability
and willingness to accomplish a specific work assignment

c. Path-Goal Theory - a theory developed by Robert House which states that the leader’s task
is to lead his followers in achieving their goals by providing them direction needed in order
to ensure compatibility of these said goals with the organization’s overall goals

3. Modern Leadership Theories

a. Transactional-Transformational Leadership Model:
Transactional Leadership - a model where leaders lead subordinates by merely using
social exchanges (or transactions) and by offering rewards in exchange for their
productivity

Transformational Leadership - a model where leaders inspire or transform followers to

achieve extraordinary outcomes

b. Charismatic-Visionary Leadership:
Charismatic Leadership - leaders who are charismatic (self-confident, enthusiastic, and
sensitive to environmental constraints and subordinate needs) are able to influence
followers and/or subordinates

Visionary Leadership - leaders are able to make their subordinates follow because of their
ability to create and articulate a realistic, credible, and attractive vision that may improve
present conditions or circumstances.

c. Team Leadership and Servant Leadership:

Team Leadership - highlights the significance of team contexts in leadership where leaders
have skills like information sharing, trust building, and empowerment
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 Organization and Management
Governor Pack Road, Baguio City, Philippines 2600
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: Grade 11- ABM
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 6 – Org Man Subject Teacher: Kenny Jones A. Amlos

Servant Leadership - serving others before the self; focuses on the commitment to the
growth of people, community building, empathy, and stewardship of resources.

Classical/ Participative Leadership Styles:

1. Autocratic style
- Emphasizes task over people, keeps authority and information within the leader’s tight
control, and acts in a unilateral command-and-control fashion.

2. Laissez-faire style
- Shows little concern for task, lets the group make decisions, and acts with a “do the best
you can and don’t bother me” attitude.

3. Democratic style
- Committed to task and people, getting things done while sharing information,
encouraging participation in decision making, and helping people develop skills and
competencies.

REFERENCES

Cabrera, H.M.F. (2015). Organization and Management. Quezon City: Vibal Group, Inc.
De Guzman, R.S. (2018). Introduction to Management. Baguio: University of the Philippines
Stevenson, W.J. (2010). Operations Management. Singapore: McGraw-Hill Companies, Inc.
Kinicki, A. & Wliliams, B.(2009). Management. New York: McGraw-Hill/Irwin.
Schermerhorn, J. (2010). Introduction to Management
Payos, et al( 2016). Organization and Management. Rexetore.
Stevenson, W.J. (2010). Operations Management. Singapore: McGraw-Hill Companies, Inc.

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