Leadership

Leadership

I am more afraid of an army of 100

sheep led by a lion than an army of
100 lions led by a sheep.
What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of goals

Management
Use of authority inherent in
designated formal rank to
obtain compliance from
organizational members
 Roles of Leaders and Managers

Establish Formulate strategy Implement

organizational for implementing organizational
vision vision strategy

Managers role
Leaders role
 LEADERSHIP THEORIES

Trait Theories
Behavioral Theories
Contingency Theories
Contemporary Issues
in Leadership
1. Trait Theories
Traits Theories of
Leadership
Leadership Traits:
Theories that consider
• Ambition and energy
personality, social, physical,
or intellectual traits to • The desire to lead
differentiate leaders from
• Honest and integrity
nonleaders
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant
knowledge
1. Trait Theories
Traits Leaders
•Napolean Leadership Traits:
•Mao • Ambition and energy
•Churchill • The desire to lead
•Roosevelt • Honesty and integrity

•Nelson Mandela

•Virgin Group CEO Richard Branson,

•Apple co-founder Steve Jobs
•American Express chairman Ken Chenault
The personal qualities and
traits of Indra Nooyi make
her a great
leader. Nooyi is CEO and
board chairman of
PepsiCo, the second
largest food and beverage
firm in
the world. She is
described as funloving,
sociable, agreeable,
conscientious,
emotionally stable, and
open to experiences.
Nooyi’s personality
traits have contributed to
her job performance and
career success.
She joined PepsiCo in
1994 as head of corporate
strategy and was
promoted to president and
chief
financial officer before
moving into
the firm’s top management
position.
Nooyi has been named
one of the most powerful
women in business and
one of the most powerful
women in the world.
Trait Theories

Limitations
• No universal traits found that predict leadership
in all 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
Trait Approach

Traits (examples)
– Extraversion
– Conscientiousness
– Openness
Assumption: Leaders are born
Goal: Select leaders
Problems
– Traits do not generalize across situations
– Better at predicting leader emergence than leader
effectiveness
2. Behavioral Theories

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate
leaders from non-leaders.
A conception that leadership is best understood in terms
of the actions taken by an individual in the conduct of
leading a group.

Behavioral Theory
Leadership behaviors can be taught.
vs.
Trait Theory
Leaders are born, not made.
Behavioral Approach

Ohio State Studies/University of Michigan

– Initiating Structure/Production Orientation
– Consideration/Employee Orientation
Assumption: Leaders can be trained
Goal: Develop leaders
Problem: Effective behaviors do not generalize across
situations.
2.1 Ohio State Studies

Initiating Structure
The extent to which a leader is likely
to define and structure his or her
role and those of subordinates in the
search for goal attainment

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 his/her feelings
2.2 University of Michigan Studies

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 Leader
Morgan Smith is an
employee-oriented leader. As
owner and managing partner
of Boneheads Restaurant in
California (US), Smith takes a
personal interest in the needs
of his employees. Described
as generous, kind, and
cheerful, he shows respect for
his employees and invests a
great deal of time in helping
them at work and assisting
them in their personal lives
such as donating food for their
weddings. Smith’s goal for his
employees is for them to
reach their full potential.
During biweekly one-on-one
meetings with employees,
Smith serves as their leader,
trainer, role model, and
advisor. He also provides
quarterly training for
employees and includes them
in reviewing the restaurant’s
profit and loss statement.
 The
Managerial
Grid
(Blake and Mouton)
3. Contingency Theories
All Consider the Situation
– Fiedler Contingency Model
– Cognitive Resource Theory
– Hersey and Blanchard’s Situational Leadership Model
– Leader Member Exchange Theory
– Path Goal Theory
– Leader Participation Model

Assumptions underlying the different models:

– Fiedler: Leader’s style is fixed.
– Other’s: Leader’s style can and should be changed.
3.1 Fiedler Model

Leader: Style Is Fixed (Task-oriented vs. Relationship-

oriented)
Considers Situational Favorableness for Leader
– Leader-member relations
– Task structure
– Position power
Key Assumption
– Leader must fit situation; options to accomplish this:
– Select leader to fit situation
– Change situation to fit leader
Task-oriented leader
When Yahoo’s growth and revenues
slowed for several years, the company
hired Carol Bartz as its new
chief executive. Known as a task oriented
leader, Bartz previously led
a successful turnaround at software
maker Autodesk where, under her
leadership, the company’s revenues
grew from $300 million to more
than $1.5 billion.

But after two

and a half years at Yahoo, Bartz
was fired as CEO for failing to
revive the company’s revenues and
stock price. According to Fiedler’s
contingency model, Bartz’s task oriented
style was not effective in
improving Yahoo’s performance.
Observers noted that Bartz failed
to provide the visionary leadership
and focused strategic direction and
execution needed to position the
company for growth.
Fiedler Model: The Leader
Assumption: Leader’s style is fixed and can be
measured by the least preferred co-worker (LPC)
questionnaire.

Least Preferred Co-Worker (LPC)

Questionnaire
The way in which a leader will evaluate
a co-worker who is not liked will
indicate whether the leader is task- or
relationship-oriented.
3.2 Cognitive Resource Theory
Cognitive Resource Theory
A theory of leadership that states that the level of stress
in a situation is what impacts whether a leader’s
intelligence or experience will be more effective.

Research Support
• Less intelligent individuals perform better in leadership roles
under high stress than do more intelligent individuals.
• Less experienced people perform better in leadership roles
under low stress than do more experienced people.
3.3 Contingency Approach: Hersey and
Blanchard Situational Model
Considers Leader Behaviors (Task and Relationship)
– Assumes leaders can change their behaviors
Considers Followers as the Situation
– Follower task maturity (ability and experience)
– Follower psychological maturity (willingness to take
responsibility)

Assumptions
– Leaders can and should change their style to fit their
followers’ degree of readiness (willingness and ability)
– Therefore, it is possible to train leaders to better fit their
style to their followers.
Hersey and Blanchard’s Situational Leadership
Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness; the more “ready” the followers (the more
willing and able) the less the need for leader support and
supervision.

LOW Amount of Follower Readiness HIGH

Amount of Leader
Support &
HIGH
Supervision Required LOW
Leadership Styles and Follower Readiness
(Hersey and Blanchard)

Follower Unwilling Willing

Readiness
Supportive
Able Participative Monitoring

Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations
3.4 Leader-Member Exchange Theory

Leader-Member Exchange (LMX) Theory

• Leaders select certain followers to be “in” (favorites)
based on competence and/or compatibility and similarity
to leader
• “Exchanges” with these “in” followers will be higher
quality than with those who are “out”
• Result: “In” subordinates will have higher performance
ratings, less turnover, and greater job satisfaction.
3.5 Path-Goal Theory
Premise
• Leader must help followers attain
goals and reduce roadblocks to
success
• Leaders must change behaviors to
fit the situation (environmental
contingencies and subordinate
contingencies)
The Path-Goal Theory
 Leadership Behaviors

Directive leadership
Lets followers know what is expected of them, schedules
work to be done, and gives special guidance as to how to
accomplish tasks.

Supportive leadership
Friendly and shows concern for the needs of followers.

Participative style
Consults with followers and uses their suggestions before
making a decision.

Achievement -oriented leader

Sets challenging goals and expects followers to perform at
their highest level.
3.6 Leader-Participation Model

Proposed by Victor Vroom and Phillip Yetton.

• Rule-based decision tree to guide leaders about when

and when not to include subordinate participation in
decision making
Leader Participation Model
Employee Involvement Continuum

Increased Leader Control

1 2 3 4 5

Increased Employee Involvement

Vroom & Yetton, 1973

Identifies five leadership behaviors:
– The leader makes the decision alone.
– The leader asks for information from group members but
makes the decision alone.
• Group members may or may not be informed about the decision.
– The leader shares the situation with each group member
and asks for information and evaluation.
• Members do not meet as a group, and the leader makes the
decision.
– The leader and group members discuss the situation, but
the leader makes the decision.
– The leader and group members discuss the situation,
and the group makes the decision.
Contemporary Issues
in Leadership
Inspirational Approaches to Leadership
Charismatic Leadership Theory
Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors.

Charismatic leaders:
1. Have a vision.
2. Are willing to take personal risks to achieve the
vision.
3. Are sensitive to follower needs.
4. Exhibit behaviors that are out of the ordinary.
Examples of Charismatic Leaders

Consider Presidents Barack Obama and Ronald

Reagan: like them or not, they are often compared
because both possess the qualities of charismatic
leaders.
Key Characteristics of Charismatic Leaders
1. Vision and articulation. Has a vision—expressed as an
idealized goal—that proposes a future better than the status quo;
and is able to clarify the importance of the vision in terms that are
understandable to others

2. Personal risk. Willing to take on high personal risk, incur high

costs and engage in self-sacrifice to achieve the vision

3. Environmental sensitivity. Able to make realistic

assessments of the environmental constraints and resources
needed to bring about change

4. Sensitivity to follower needs. Perceptive of others’ abilities

and responsive to their needs and feelings

5. Unconventional behavior. Engages in behaviors that are

perceived as novel and counter to norms
Beyond Charismatic Leadership
Level 5 Leaders
– Possess a fifth dimension—a paradoxical blend of
personal humility and professional will—in addition to
the four basic leadership qualities of individual
capability, team skills, managerial competence, and the
ability to stimulate others to high performance
– Channel their ego needs away from themselves and
into the goal of building a great company
Transactional and Transformational Leadership

Transactional Leaders • Contingent Reward

Leaders who guide or motivate • Management by
Exception (active)
their followers in the direction of
established goals by clarifying role • Management by
Exception (passive)
and task requirements
• Laissez-Faire

Transformational Leaders
Leaders who provide the four “I’s”
(individualized consideration,
inspirational motivation, idealized
influence, and intellectual
stimulation)
• Idealized Influence
• Inspirational Motivation
• Intellectual Stimulation
• Individual Consideration
Examples of transformational leaders

•Andrea Jung at Avon,

•Richard Branson of the Virgin Group
•Jim McNerney of Boeing
Elements of transformational
leadership
such as vision and foresight
appear to be universal. In
China, for
example, Wang Jianzhou is
the CEO
of China Mobile, the world’s
largest
mobile phone operator with
more
than 600 million subscribers.
With
vision and foresight, Jianzhou
is
expanding mobile service
throughout
China’s vast rural areas and
plans to expand in emerging
markets
such as Africa, Asia, and Latin
America. Proactive and
positive,
Jianzhou’s leadership draws
from
his extensive knowledge of
and
more than 30 years of
experience
in the telecommunications
industry.
Jianzhou is shown here during
the
launch of the firm’s OPhone
operating
system platform.
Characteristics of Transactional Leaders

Contingent Reward: Contracts exchange of rewards for

effort, promises rewards for good performance,
recognizes accomplishments
Management by Exception (active): Watches and
searches for deviations from rules and standards, takes
corrective action
Management by Exception (passive): Intervenes only
if standards are not met
Laissez-Faire: Abdicates responsibilities, avoids making
decisions
Full Range of Leadership Model
Characteristics of Transformational Leaders

Idealized Influence: Provides vision and sense of

mission, instills pride, gains respect and trust
Inspiration: Communicates high expectations, uses
symbols to focus efforts, expresses important purposes in
simple ways
Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving
Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises
How to become an effective leader

Learning skills such as:

• share information
• trust others
• give up authority
• understand when to intervene

Effective leaders have mastered the balancing

act of knowing when to leave their teams
alone and when to intercede
Trust: The Foundation of Leadership
Trust
A positive expectation that
another will not—through
words, actions, or
decisions—act
opportunistically
Trust is a history-dependent
process (familiarity) based
on relevant but limited
samples of experience (risk)
 COURSE OBJECTIVES-
Life skills
CO 1 Outline different life skills required in personal and
professional life.
CO2 Describe the application of different theoretical
perspectives within the field of personality,
motivation, perception, and applying these theories
to everyday settings (e.g., business, social
interactions, education)
CO3 Develop the understanding of leadership and
shaping behavior through learning
Life Skills

Leadership
Coping with Stress
Coping with emotions
Coping with Conflicts
Personality
Motivation
Perception
Learning & Shaping Behavior
The course has fulfilled the defined
course objectives.