Managers as

Leaders
Topic#7

Principles of Management – Fall 2022 Sana Iqbal

People ask the difference between a
leader and a boss. The leader leads,
and the boss drives.

Theodore Roosevelt.

Principles of Management – Fall 2022 Sana Iqbal

 Leaders & Leadership
• Leader – someone who can influence others and who has
managerial authority.
• Leadership – the process of leading & influencing a group
to achieve goals.

• Ideally, all managers should be leaders

Although groups may have informal leaders who emerge, those are not
the leaders we’re studying.

What is an effective leader?

Principles of Management – Fall 2022 Sana Iqbal

 Leaders & Leadership

What is an effective leader?

• Early leadership theories – traits & behavior

• Contingency theories – situational theories
• Contemporary theories - modern

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
Early 20th century.

• Leader characteristics (leader trait theories).

• Interaction of leader with his or her group members
(leadership behavior theories).

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Trait Theories

• 1920s – 1930s.
• Initial research - traits or personal
characteristics that differentiate
leaders from non-leaders –
unsuccessful.
Physical stature, appearance, social class,
emotional stability, sociability etc.

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Trait Theories

• Later research – traits associated with leadership

– successful.
Seven traits – drive, the desire to lead, honesty and integrity,
self-confidence, intelligence, job-relevant knowledge, and
extraversion.

Principles of Management – Fall 2022 Sana Iqbal

 Seven Traits Associated with Leadership

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Trait Theories

• Ignored interactions of leaders and their group members as

well as situational factors.

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Behavior Theories
1940s – 1960s.
➢University of Iowa Studies (Kurt Lewin)
• Autocratic style – centralized authority, dictate work methods, no
participation.
• Democratic style – Involvement, delegate authority & used feedback.
• Laissez faire style – hands-off management

Initial research showed democratic style resulted in high

performance. Later studies showed mixed results with autocratic
style.
However, democratic style always produced high employee
satisfaction – dilemma.

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Behavior Theories
➢The Ohio State Studies
Two dimensions of leader behavior.
• Initiating structure – extent to which a leader defined his or her
role and the roles of group members in attaining goals – task.
• Consideration - leader’s mutual trust and respect for group
members’ ideas and feelings – people.

High-high leaders sometimes achieved high group task-

performance and satisfaction, but not always.

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Behavior Theories
➢University of Michigan Studies
Two dimensions of leadership behavior.
Employee orientation - emphasizing interpersonal relationships.
Production orientation – emphasizing task accomplishment.

Leaders who were employee oriented were strongly

associated with high group-productivity and high job-
satisfaction.

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Behavior Theories
➢The Managerial Grid (Blake and Mouton)
• Two dimensions – concern for people (y-axis) & concern for
production (x-axis).
• Places leadership styles in one of the five categories:
Impoverished Management (1,1), Task Management (9,1), Middle-of-
the-Road Management (5,5), Country Club Management (1,9), Team
Management (9,9).

Little evidence supported the conclusion that team

management (9,9) is the most effective style in all situations.

Principles of Management – Fall 2022 Sana Iqbal

 The Managerial Grid

Principles of Management – Fall 2022 Sana Iqbal

 Early Leadership Theories
➢Leadership Behavior Theories
➢Limitations

While trait and behavior theories do help us understand

leadership, an important component is missing: the
environment in which the leader exists.

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
While trait and behavior theories do help us understand
leadership, an important component is missing: the
environment in which the leader exists.
If-then contingencies – situational influences.

• The Fiedler Model

• Hersey & Blanchard’s Situational Leadership Theory
• Path-Goal Model

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
➢The Fiedler Model
Fred Fiedler.
Effective group performance depends on the proper match between
leadership style and the situation.
• Define those leadership styles & different types of situations.
• Identify appropriate combinations of style & situation.

➢ Least preferred co-worker (LPC) questionnaire to identify style by

measuring whether a person is task oriented or relationship oriented –
18 pairs of contrasting adjectives like friendly-unfriendly.
Respondents were asked to think of all the co-workers they had ever had
and describe the one they least enjoyed working with.
Scale of 1 to 8 for each of 18 sets of contrasting adjectives (such as
pleasant–unpleasant, efficient–inefficient, open–guarded, supportive–
hostile)
Principles of Management – Fall 2022 Sana Iqbal
 Contingency Theories
➢The Fiedler Model
If the leader described the least preferred coworker in relatively
favorable terms (LPC score of 64 or above) – relationship oriented.
If the leader described the least preferred coworker in relatively
unfavorable terms (LPC score of 57 or below) – task oriented.

➢ Each leadership situation was evaluated on the basis of three

contingency dimensions – eight possible situations.
• Leader-member relations – degree of confidence and trust in the
leader (good or poor)
• Task structure – degree of structure and formalization in jobs (high or
low)
• Position power – leader’s ability to hire, fire, discipline and reward
(strong or week)

Principles of Management – Fall 2022 Sana Iqbal

Principles of Management – Fall 2022 Sana Iqbal
 Contingency Theories
➢The Fiedler Model
➢ Define specific contingencies for leadership effectiveness.
Task-oriented leaders performed better in very favorable situations and
in very unfavorable situations.
Relationship-oriented leaders performed better in moderately favorable
situations.

Assumed that the leadership style remains fixed.

To improve leader effectiveness - change the leader to fit the
situation or change the situational variables to fit the
current leader.

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
➢The Hersey & Blanchard’s Situational Leadership Theory
Paul Hersey and Ken Blanchard.
• Focuses on “followers’ readiness”
Followers can accept or reject the leader. Effectiveness of leader depends on
the followers’ response to the leader’s actions
“Readiness” is the extent to which people have the ability and willingness
to accomplish a specific task.

Task oriented vs relationship oriented – high or low – four leadership styles.

Leaders should compensate for ability and

motivational limitations in their followers.

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
➢The Hersey & Blanchard’s Situational Leadership
Theory
Four leadership styles & four stages of followers’ readiness.
Effectiveness of the leadership style depends on the follower’s
readiness.
• If followers are unable and unwilling (R1) to do a task, the
leader needs to give clear and specific directions (Telling – high
task – low relationship)

• If they are unable and willing (R2), the leader needs to display
high task orientation to compensate for followers’ lack of ability
and high relationship orientation to get them to “buy into” the
leader’s desires (Selling – high task – high relationship).

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
➢The Hersey & Blanchard’s Situational Leadership
Theory
Leader should choose one of four leadership styles
depending on the follower’s readiness.
• If followers are able and unwilling (R3), the leader needs to use
a supportive and participative style to gain the support
(Participating – low task – high relationship)

• If they are both able and willing (R4), the leader doesn’t need to
do much (Delegating – low task – low relationship)
As the workers become more ready, the leader becomes more laissez-
faire.

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
➢Path-Goal Model
Robert House.
Leaders provide followers with information, support, and resources to
help them achieve their goals. Leaders help clarify the “path” to the
worker’s goals.
Four leadership behaviors;
Directive leader - focuses on the work to be done. Yields greater
satisfaction when tasks are ambiguous or stressful than when they are
highly structured and well laid out.
Supportive leader – focuses on the well-being of the worker. Successful
when employees are performing structured tasks.
Participative leader – consults with employees in decision-making.
Achievement-Oriented leader – sets challenging goals & expects
followers to perform at highest level.

Principles of Management – Fall 2022 Sana Iqbal

Principles of Management – Fall 2022 Sana Iqbal
 Contingency Theories
➢Path-Goal Model
• Leadership behavior–outcome relationship is
moderated by two types of contingency
variables – environmental factors & personal
characteristics of the followers.

• Leader’s behavior won’t be effective if it’s

redundant with what the environmental
structure is providing or is incongruent with
follower characteristics.
Choose a leadership style that compensates for
shortcomings in either the employee or the work setting.

Principles of Management – Fall 2022 Sana Iqbal

 Contingency Theories
➢Path-Goal Model
Predictions:
• Directive style – ambiguous & stressful tasks or in conflict & crisis.
• Supportive style – structured tasks & formal authority relationships are
more bureaucratic
• Directive style perceived as redundant when followers have higher
ability & experience.
• Participative style – followers with internal locus of control.
• Directive style – followers with external locus of control.
• Achievement-oriented style – ambiguously structured tasks.

Principles of Management – Fall 2022 Sana Iqbal

 Contemporary Views
➢Leader-Member Exchange (LMX) Theory
Leaders form a special relationship with a small group of
followers: the “in-group”.
This in-group is trusted and gets more time and attention
from the leader (more “exchanges”)

All other followers are in the “out-group” and get less of the
leader’s attention and tend to have formal relationships with
the leader (fewer “exchanges”)

Leaders pick group members early in the relationship.

Principles of Management – Fall 2022 Sana Iqbal

 Contemporary Views
➢Leader-Member Exchange (LMX) Theory
• Follower’s characteristics determine in-group membership.
Members have demographic, attitude, and personality
characteristics similar to those of their leader or a higher level of
competence.
Leaders and followers of the same gender tend to have closer
(higher LMX) relationships than those of different genders.

Principles of Management – Fall 2022 Sana Iqbal

 Leader-Member Exchange (LMX) Theory

Principles of Management – Fall 2022 Sana Iqbal

 Contemporary Views
➢Transformational-Transactional Leadership
➢Transactional leaders – guide or motivate followers by
exchanging rewards – social exchanges (or transactions).
Earlier view.
➢Transformational leaders – stimulates, inspires & excite
followers to achieve extraordinary outcomes (exert extra
effort).
Developed from transactional leadership.
More than charisma.

Andrea Jung of Avon.

Principles of Management – Fall 2022 Sana Iqbal

 Contemporary Views
➢Charismatic-Visionary Leadership

➢Charismatic Leadership – an enthusiastic, self-confident

leader whose personality and actions influence people to
behave in certain ways.
Ideological goal – gain followers through personality rather than through
power or authority.
Martin Luther King Jr., Steve Jobs, Jeff Bezos of Amazon.com

• Characteristics - have a vision, are able to articulate the vision,

are willing to take risks to achieve the vision, are sensitive to the
environment and follower needs & exhibit out of the ordinary
behaviors.
Principles of Management – Fall 2022 Sana Iqbal
 Contemporary Views
➢Charismatic-Visionary Leadership

➢Visionary Leadership – creates and articulates a realistic,

credible, and attractive vision of the future that improves
upon the present situation.

Michael Dell (Dell Computers) – vision of a business that

sells and delivers customized PCs directly to customers in
less than a week.

Principles of Management – Fall 2022 Sana Iqbal