Topic 4: Leadership

4.1 Definition of leadership

4.1.1 Definition of lead

‘The initiative in an action; an example for others to follow’

‘A position of advantage in a contest; first place’

4.1.2 Definition of leader

‘Someone who can influence others and who has managerial authority’

‘The person who leads or commands a group, organization, or country’

4.1.3 Definition of leading

‘Having a position in the lead’

4.1.4 Definition of leadership

‘The action of leading a group of people or an organization’

‘It is the process of directing and influencing human resource efforts towards organization.’

‘What leaders do; the process of influencing a group to achieve goals.’

Ideally, all managers should be leaders

Additional:
Leader vs manager: what’s the difference?
https://www.wgu.edu/blog/leader-vs-manager-difference2005.html
Difference between Leader and Manager
https://www.geeksforgeeks.org/difference-between-leader-and-manager/

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4.2 Importance of leadership

1. Motivate employees to generate good work.

2. Encourage teamwork.
3. Enhance and elicit cooperation.
4. Make contribution to organization.

4.3 Types of power

Ability to exert influence by which managers may affect other’s behavior

Personalized Power Orientation

Associated with a strong need for esteem and

Power Orientation
status; power is often used impulsively.

Socialized Power Orientation

It is the use of power for the benefit of others to

make subordinates feel strong and responsible.

Legitimate power
It stems from formal authority and position in the organization.
Example president, supervisor, security guard
Types of Power:

Reward power

POSITION POWER Control over tangible benefits that people value. For example,
promotion, money and bonus

Coercive power
The power to discipline, punish and withhold rewards by
controlling experience that people find unpleasant and
unwelcome. For example, penalty, punishment and demote.

Information power
Control over information, whether leader wants to give the
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information or not. Example is secretary
 Expert power
Influences others through the possession of knowledge of
skills that are useful to others. Example is doctor.
PERSONAL POWER
Referent power
Influences others through the possession of characteristics of
traits others find attractive, such as status, money, physical
appearance and fame. Referent power is gained by a leader
who has strong interpersonal relationship skills. Example is
Tun Dr Mahathir.

4.4 Early theories of leadership

TRAIT THEORY

University of IOWA Studies

The Ohio State Studies

The University of Michigan Studies

BEHAVIORAL
THEORIES

The Managerial Grid

4.4.1 Trait Theory

I. The theory states that:

A. Leaders can be selected and evaluated based on their physical, mental and
psychological characteristics.

B. Leaders are born with certain characteristics or personality traits.

II. Some traits that differentiate leader and non-leader:

A. Physical characteristics → Energetic and high physical stamina.

B. Mental ability → Sharpness and intelligence.

C. Personality → Self-confidence, independence, charismatic, enthusiasm.

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 D. Social characteristics → Cooperativeness, diplomacy and interpersonal skill.

E. Work related characteristics → Achievement drive, desire to excel and

persistence against obstacle.

4.4.2 Behavioral Theory

4.4.2.1 University of IOWA Studies (Kurt Lewin)

• Identified three leadership styles:

– Autocratic style: centralized authority, low participation
– Democratic style: involvement, high participation, feedback
– Laissez faire style: hands-off management

• Research findings: mixed results

– No specific style was consistently better for producing better performance.
– Employees were more satisfied under a democratic leader than under an autocratic
leader.

4.4.2.2 The Ohio State Studies

Studies that sought to identify independent dimensions of leader behavior

Consideration
The extent to which a leader is mindful of subordinates, respect their ideas and feelings and
established mutual trust.

Initiating structure
The extent to which a leader is task oriented and directs subordinates’ work activities towards
goal attainment.

There are 4 outcomes/combinations with regards to the above:

i. High consideration/Low initiating structure
ii. High consideration/High initiating structure
iii. Low consideration/Low Initiating structure
iv. Low consideration/High initiating structure

Conclusion: The best approach is high consideration/high initiating structure.

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4.4.2.3 The University of Michigan Studies

Studies that sought to identify the behavioral characteristics of leaders related to performance
effectiveness

Employee oriented
A leader who emphasizes interpersonal relations, takes a personal interest in the needs of
employees, and accepts individual differences.

Production oriented
A leader who emphasizes technical or task aspects of a job, is concerned mainly with
accomplishing tasks, and regards group members as a means to accomplishing goals.

Conclusion: The most effective supervisors were those focused on the subordinate’s human
needs in order to build effective work groups with high performance goal.

4.4.2.4 The Managerial Grid

1. Robert Blake and Jane Mouton proposed the managerial grid (leadership grid) that
reflects the need for both employee-oriented and task-oriented styles of leadership to be
practiced simultaneously.

2. Managerial Grid identifies 5 leadership behaviors based on task-oriented and employee-

oriented styles:

Point (1,1) Impoverished management.

- It is also known as laissez-faire.
- The management has little concern for its people and production.
- In this leadership style, exertion of minimum effort to get required work done is appropriate
to sustain organization membership.

Point (1,9) Country club management.

- It has high concern for individual personal needs as well as interpersonal relationship
but does not pay attention to production.
- The thoughtful attention to people’s needs for satisfying relationship will lead to a
comfortable friendly organization atmosphere.

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Point (5,5) Middle of the road management / organization man management.
- Managers show moderate concern for people and production.
- Adequate organization performance is possible through balancing the necessity to get out
work with maintaining morale of people at a satisfying level.

Point (9,1) Autocratic / Authoritarian / Task management.

- It has high concern for production and low concern for people.
- It stresses on operating efficiency through control.
- Concentrate primarily with production and task accomplishment and least concerned about
the welfare of the employees.

Point (9,9) Team / participative / democratic / supportive management.

- It has high concern for people and production.
- Work accomplishment is from commitment people, interdependence through common
interest as well as a relationship of trust and respect.
- Managers also concerned for the feeling and interests of group members.

Among the 5 leadership styles (9,9) is the best to generate improve performance and low
absenteeism and turnover.’

9 1.9 Country club 9.9 Team,

management Participative or
Democratic
8 Management

Concern for people 5 5,5 Middle of the Road

Management
4

2
Impoverished Autocratic Dictator
1 1.1 9,1
Management Management

1 2 3 4 5 6 7 8 9
Concern for Production

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4.5 Contingency theory of leadership

The Fiedler Model

CONTINGENCY
APPROACHES Life Cycle Theory / Situational
Leadership Theory

Path Goal Theory

4.5.1 The Fiedler Model

– Proposes that effective group performance depends upon the proper match between the
leader’s style of interacting with followers and the degree to which the situation allows the
leader to control and influence.
– Assumptions:
– A certain leadership style should be most effective in different types of situations.
– Leaders do not readily change leadership styles.
• Matching the leader to the situation or changing the situation to make it favorable to
the leader is required.
– Least-preferred co-worker (LPC) questionnaire
– The least preferred coworker (LPC) scale requires a person to rate the one individual
they would least want to work with
– Determines leadership style by measuring responses to 18 pairs of contrasting
adjectives
• High score: a relationship-oriented leadership style
• Low score: a task-oriented leadership style

4.5.2 Life Cycle Theory / Situational Leadership Theory

1. This theory was developed by Paul Hersey and Kenneth Blanchard.

2. Based on this theory, a leader should change style of leadership according to

the level of maturity, acceptance and readiness of his employees.

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 3. Maturity of employees indicated their:
i. Desire for achievement.
ii. Willingness and ability to accept responsibility.
iii. Education/experience and skills relevant to particular tasks.

4. Acceptance:
i. Leader effectiveness reflects the reality that is the followers who accept or
reject the leader

5. Readiness:
i. A follower’s ability and willingness to perform

(Mature)
(Immature)
High

Phase 3 (Participating) Phase 2 (Selling)

• High relationship • High relationship

• Low task • High task

Relationship
Behavior
(Support required)
Phase 4 (Delegating) Phase 1 (Telling)

• Low relationship • Low relationship

• Low task • High task

Low

Low High
Task Behavior High
(Guidance required)

Life Cycle Approach/Situational Approach

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4. Explanation of the Life-cycle approach:-
a. Phase 1 (High Task / Low Relationship) – Telling
i. Leader use one-way communication.

ii. Manager defines goals and roles of employees and tells what to do,
when and where to do the task.

iii. It is appropriate when dealing with employees who are lack of skill and
experience in doing the task and unwilling to accept high responsibility.

iv. E.g.: A new employee who is relatively new and inexperienced need to
be told what to do and how to do.

b. Phase 2 (High Task / High Relationship) – Selling

i. Employees are learning to do the job. High task behavior is needed
because employees lack experience and skills to assume responsibility.

ii. High relationship is needed due to managers providing high level of

emotional support and encouragement to develop trust and confidence
in employees.

c. Phase 3 (Low Task / High Relationship) – Participating

i. Employees who show maturity in performing task are more experienced
and skilled as well as more achievement-oriented.

ii. They are motivated to assume more responsibility.

iii. The manager reduces the need for task relationship but continues to
give emotional support and consideration to increase employee’s level
of responsibility.

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 d. Phase 4 (Low Task / Low Relationship) – Delegating
i. This phase is meant for employees with the highest level of task
maturity.

ii. They are skilled and experienced and motivated to assume more
responsibility.

iii. They are self-directed and are able to exercise self-control.

iv. They no longer need high level of supportive or task behavior from their
managers.

4.5.3 Path Goal Theory

1. This leadership model was developed by Robert J. House.

2. This theory suggest :

a. The primary function of a leader is to make valued or desired rewards
available in the workplace.

b. A leader needs to clarify to the employees the kind of behavior needed that
will lead to those reward.

c. A manager’s job is to create a work environment through structure, rules

and procedures, plans and goals, support and rewards and to act as a guide
to help employees reach their goals.

d. The managers are the sources of rewards.

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e. To assist employees achieved their goals, 4 leadership styles can be
adopted by managers:
i. Directive - Describe the boss telling subordinates exactly what they
have to do. The leaders plans, set goals and standards behavior and
stresses the importance of following the rules and regulation. It is used
under the below situation:
• Unstructured tasks
• Inexperienced worker
• Worker with low perceived ability
• Workers with external locus of control
• Unclear formal authority system

ii. Supportive – Implies an approach that able to create friendly manner

and displaying concern for employees needs and welfare. The
leader creates a team treating others equally. It is used under the
following condition:
• Tasks are structured, simple and repetitive.
• Tasks are stressful and frustrating.
• Workers lack of confidence
• Clear formal authority.

iii. Participative – Consulting with subordinates and considering their

view before making decision and asking for suggestions from
subordinates. It is suitable to be used when:
• Workers are experienced
• Workers have high perceived ability.
• Workers with internal locus of control
• Tasks are complex.

iv. Achievement oriented – Leader sets clear and challenging goals and
expects employees to perform at their highest level. It can be used
when:
• Tasks are not challenging

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4.6 Contemporary views of leadership

4.6.1 Leader-member exchange (LMX) Theory

The leadership theory that says leaders create in-groups and out-groups and those in the in-
group will have higher performance ratings, less turnover and greater job satisfaction

4.6.2 Charismatic leadership

– An enthusiastic, self-confident leader whose personality and actions influence people to

behave in certain ways.
– Characteristics of charismatic leaders:
• 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 behaviors that are out of the ordinary

4.6.3 Transformational-transactional leadership

• Transactional Leadership
– Leaders who guide or motivate their followers in the direction of established
goals by clarifying role and task requirements.
• Transformational Leadership
– Leaders who inspire followers to transcend (be or go beyond the range or limits
of) their own self-interests for the good of the organization by clarifying role and
task requirements.

4.6.4 Authentic leadership

Leaders who know who they are, know what they believe in, and act on those values and
beliefs openly and candidly.

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4.6.5 Ethical leadership

Ethical leadership is the art of leading people and making good decisions based on a defined
set of values, such as fairness, accountability, trust, honesty, equality, and respect. In fact,
these values form the core foundation of ethical leadership.

4.6.6 Servant leadership

Leadership that goes beyond self-interest and focuses on opportunities to help followers grow
and develop

4.6.7 Followership

“Followership is a straightforward concept. It is the ability to take direction well, to get in line
behind a program, to be part of a team and to deliver on what is expected of you….how well
the followers follow is probably just as important to enterprise success as how well the leaders
lead.”

Source: https://www.melbrown.org/what-is-followership-2/

4.7 Leadership issues in 21st century

4.7.1 Managing power

Refer 4.3

4.7.2 Developing credibility and trust

The main component of credibility is honesty.

In addition to being honest, credible leaders are competent and inspiring.

Trust is defined as the belief in the integrity, character, and ability of a leader.

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4.7.3 Leading virtual teams

Emerging technologies allow people to work from almost any location. Obvious examples
include managers who regularly use email or video calls to communicate with their staff,
managers overseeing virtual projects or teams, and managers whose telecommuting
employees are linked to the office by a computer at home.

4.7.4 Leadership training

A recent comprehensive review of over 300 studies found very encouraging results when
certain conditions are met. It was found that leadership training composed of multiple sessions
and combining information, demonstration, and practice-methods was effective in creating real
behavioural change and in positively influencing organizational and subordinate outcomes.

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