Topic 11 – Leadership Theories Essentials of Management

Essentials of Management
Topic 11:
Leadership Theories © NCC Education Limited

Leadership Theories Topic 11 – 11.2

Scope and Coverage

This topic will cover:

• Early trait and behavioural theories
• Contingency theories developed by Fiedler and
Hersey-Blanchard
• The path-goal model
• The emergence of transformational, transactional
and charismatic leadership
• Sources of leader power
• The importance of trust in effective leadership

© NCC Education Limited

Leadership Theories Topic 11 – 11.3

Learning Outcomes

By the end of this topic students will be able to:

• Discuss and explain the early leadership theories
that focused primarily on behavioural aspects
• Evaluate the strengths and weaknesses of the
contingency theories of leadership
• Explain why today’s new business models pose
different challenges to leaders
• Evaluate the role of trust and credibility in effective
leadership

© NCC Education Limited

V1.0 Visuals Handout – Page 1

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.4

What is Leadership?

• The process of influencing a

group towards the
achievement of a common goal
• A leader is someone who is
trusted and respected by a
team of ‘willing followers’ and
can influence them through
his/her qualities and expertise
• Can have managerial authority
and power
© NCC Education Limited

Leadership Theories Topic 11 – 11.5

Early Leadership Theories

• Trait theories – characteristics used to distinguish

leaders from non-leaders
• Behavioural theories – identified behaviours that
differentiate effective leaders from ineffective
leaders

© NCC Education Limited

Leadership Theories Topic 11 – 11.6

Traits Associated With Leadership

• Drive – high desire for achievement, ambitious

• Desire to lead – keen to influence and lead others
• Honesty and integrity – build trusting relationships, are
truthful and non-deceitful
• Self-confidence – absence of any self-doubt
• Intelligence – create visions, solve problems and make
correct decisions (including emotional intelligence)
• Job-relevant knowledge – high degree of knowledge
about company, industry and technical matters
• Extraversion – energetic, passionate and lively

© NCC Education Limited

V1.0 Visuals Handout – Page 2

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.7

Summary of Behavioural Theories of

Leadership
Behavioural Dimension Conclusion

University Democratic style Democratic style of leadership

of Iowa Autocratic style was most effective, later studies
showed mixed results
Laissez-faire style
Ohio State Consideration High-high leader achieved high
Initiating structure subordinate performance and
satisfaction
University Employee oriented Employee-oriented leaders were
of Michigan Production oriented associated with high group
productivity
Managerial Concern for people Leaders performed best with 9.9
Grid (Blake Concern for production style (high concern for production
& Mouton) and people)

© NCC Education Limited

Leadership Theories Topic 11 – 11.8

Contingency Theories of Leadership

• The Fiedler Model

• Hersey and Blanchard’s
Situational Leadership
Theory
• Leader Participation Model
• Path-Goal Model

© NCC Education Limited

Leadership Theories Topic 11 – 11.9

The Fiedler Contingency Model

• Effective group performance depends on a proper match

between a leader’s style of interacting with their followers
and the degree to which the situation allows the leader to
control and influence
• Least-preferred co-worker (LPC) questionnaire developed
to measure a leader’s style
• Three contingency dimensions used to define key
situational factors:
– Leader-member relations
– Task structure
– Position power

© NCC Education Limited

V1.0 Visuals Handout – Page 3

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.10

Findings of the Fiedler Model

© NCC Education Limited

10

Leadership Theories Topic 11 – 11.11

Hersey and Blanchard’s Situational

Leadership Theory (SLT)

• Focuses on followers’ readiness

• Readiness is the extent to which people have the
ability and willingness to accomplish a specific task
• Uses four leadership styles and four stages of
follower readiness

© NCC Education Limited

11

Leadership Theories Topic 11 – 11.12

SLT Leadership Styles and Follower

Readiness
• Leadership style
– S1, Telling (high task - low relationship)
– S2, Selling (high task - high relationship)
– S3, Participating (low task – high relationship)
– S4, Delegating (low task – low relationship)
• Follower readiness
– R1 (unable and unwilling)
– R2 (unable and willing
– R3 (able and unwilling)
– R4 (able and willing
S1 style used with R1 followers, S2 with R2, etc

© NCC Education Limited

12

V1.0 Visuals Handout – Page 4

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.13

Situational Leadership

© NCC Education Limited

13

Leadership Theories Topic 11 – 11.14

Leader Participation Model

• Developed by Victor Vroom and Phillip Yetton

• Relates leadership behaviour and participation in
decision-making
• Uses five leadership styles:
– Decide
– Consult individually
– Consult group
– Facilitate
– Delegate

© NCC Education Limited

14

Leadership Theories Topic 11 – 11.15

Path-Goal Model
• Developed by Robert House
• States that it is the leader’s job to assist his/her followers in
attaining their goals
• Should also provide support to ensure that the goals are
compatible with the overall objectives of the group or
organisation
• Four leadership behaviours identified:
– Directive leader
– Supportive leader
– Participative leader
– Achievement-oriented leader
Model revised in 1996 (see next slide)

© NCC Education Limited

15

V1.0 Visuals Handout – Page 5

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.16

Revised Path-Goal Model

Leader Behaviours Employee Characteristics Leadership

• Path-goal • Locus of control Effectiveness
clarifying • Task ability • Employee
• Achievement • Need for achievement motivation
orientated • Experience • Employee
• Work facilitation • Need for clarity satisfaction
• Supportive • Employee
• Interaction performance
facilitation • Leader acceptance
• Group orientated Environmental Factors • Work-unit
decision-making • Task structure performance
• Representation & • Work group dynamics
networking
• Value based

© NCC Education Limited

16

Leadership Theories Topic 11 – 11.17

Contemporary Approaches to
Leadership
• Transformational-transactional leadership
• Charismatic-visionary leadership
• Team leadership

© NCC Education Limited

17

Leadership Theories Topic 11 – 11.18

Transformational-Transactional
Leadership

• Transformational leadership – able to excite,

arouse and inspire followers to put in extra effort to
achieve group goals. Known to instigate and
encourage radical or revolutionary change.
• Transactional leaders – guide or motivate their
followers in the direction of established goals by
clarifying role and task requirements. Known to
support incremental and evolutionary change.

© NCC Education Limited

18

V1.0 Visuals Handout – Page 6

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.19

Charismatic-Visionary Leadership

• Enthusiastic and self-

confident leader
• Personality and actions
influence people to behave
in certain ways
• A visionary leader goes
beyond this and is able to
articulate a realistic and
attractive vision of the future

© NCC Education Limited

19

Leadership Theories Topic 11 – 11.20

Team Leadership and the Roles Involved

Motivator

Liaison with
Coach external
parties

Team Leader
Roles

Conflict
Troubleshooter
Manager

Communicator

© NCC Education Limited

20

Leadership Theories Topic 11 – 11.21

Managing Power

Five sources of leader power:

• Legitimate power – as a result of position in
organisation
• Coercive power – ability to punish or control
• Reward power – ability to give benefits/rewards
• Expert power – based on expertise/knowledge
• Referent power – arises because of a person’s
desirable resources or personal traits

© NCC Education Limited

21

V1.0 Visuals Handout – Page 7

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.22

Developing Trust

• Belief in the integrity, character and ability of a

leader
• Five dimensions make up the concept of trust:
– Integrity
– Competence
– Consistency
– Loyalty
– Openness

© NCC Education Limited

22

Leadership Theories Topic 11 – 11.23

Providing Moral Leadership

• Ethics are part of leadership

• Lack of ethics can see leaders abuse their
positions of power
• Moral leadership involves addressing the means
that a leader uses in trying to achieve goals and...
• ...the moral content of those goals

© NCC Education Limited

23

Leadership Theories Topic 11 – 11.24

Providing Online Leadership

• An emerging issue is managing people who work
remotely (sometimes in different countries) and
communicate virtually using a range of
technologies
• Challenges posed by virtual teams include:
– Communication
– Performance management (defining, facilitating and
encouraging)
– Trust
– Scheduling reviews and meetings

© NCC Education Limited

24

V1.0 Visuals Handout – Page 8

Topic 11 – Leadership Theories Essentials of Management

Leadership Theories Topic 11 – 11.25

Summary

• Early leadership theories focused upon the leaders and

how they interacted with their group members
• Fiedler and Hersey-Blanchard were important
developers of contingency theories of leadership
• The revised path-goal model is one of the most
respected approaches to understanding leadership
• Contemporary approaches to leadership include
transformational, transactional and charismatic
• Leaders get their power through various sources
• Developing trust is key to effective leadership
• Web-based business poses new leadership challenges

© NCC Education Limited

25

Leadership Theories Topic 11 – 11.26

References

• Slide 11.10: Management eighth edition by Robbins, S.P. and

Coulter, M. (Pearson/Prentice-Hall) IBN: 978-0131439948 pp
428
• Slide 11.13: www.bing.com
• Slide 11.16: www.bing.com

© NCC Education Limited

26

Leadership Theories Topic 11 - 11.27

Topic 11 – Leadership Theories

Any Questions?

V1.0 © NCC Education Limited

27

V1.0 Visuals Handout – Page 9