Chapter

16

Leadership

of all businesses
fail in first two years
60-75% of Americans
say worst thing about
work is their boss!

 Leadership

is a mark of merit not just a job

title, They move people, bind people together,
inspire people to go beyond the known horizons.
leadership is a relationship
occurs at all levels
is dynamic
is authentic
has a sense of discovery

Difference B/W Managers &

Leaders.
MANAGERS.
Managers

work for
the acceptable
solution.
Managers make the
employees to
complete the
required task.

LEADERS.
Leaders

introduce

change.
Leaders influence
people who follow him
for goal
accomplishment.

174

Leaders and
Leadership

Leader Someone who can influence others and who has

managerial authority

Leadership What leaders do; the process of 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 were studying

Leadership research has tried to answer: What is an

effective leader?

175

Early Leadership
Theories

Trait Theories (1920s-30s)

Research focused on identifying personal

characteristics that differentiated leaders

from non leaders was unsuccessful.

Later research on the leadership process

identified seven traits associated with

successful leadership:

Drive, the desire to lead, honesty and integrity,

self-confidence, intelligence, job-relevant

knowledge, and extraversion.

176

Trait Theories of
Leadership

Theories that consider personality, social,

physical, or intellectual traits to differentiate
leaders from non leaders.
Not very useful until matched with the Big Five
Personality Framework
Leadership Traits
Extroversion
Conscientiousness
Openness
Emotional Intelligence (Qualified)

Traits can predict leadership, but they are better

at predicting leader emergence than
effectiveness
2009 Prentice-Hall Inc. All rights reserved.

12-7

Exhibit 161 Seven Traits Associated with Leadership

178

Behavioral Theories of
Leadership

Theories proposing that specific behaviors

differentiate leaders from nonleaders

Differences between theories of leadership:

Trait theory: leadership is inherent, so we must

identify the leader based on his or her traits

Behavioral theory: leadership is a skill set and

can be taught to anyone, so we must identify the

proper behaviors to teach potential leaders

2009 Prentice-Hall Inc. All rights reserved.

12-9

Early Leadership Theories

(contd)

Behavioral Theories
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 an autocratic leader.
1710

Early Leadership Theories

(contd)

Behavioral Theories (contd)

Ohio State Studies
Identified two dimensions of leader behavior

Initiating structure: the role of the leader in defining

his or her role and the roles of group members

Consideration: the leaders mutual trust and respect

for group members ideas and feelings.

Research findings: mixed results

High-high leaders generally, but not always, achieved

high group task performance and satisfaction.

Evidence indicated that situational factors appeared

to strongly influence leadership effectiveness.

1711

Exhibit 162

Behavioral Theories of Leadership

1712

Review of Leadership
Styles

1. Democratic/
Participative Leadership
Style

When to use Democratic

Leadership Style?

Limitation of Democratic
Leadership Style

2. Autocratic Leadership
Style

When to use Autocratic

Leadership Style?

Limitations of Autocratic
Leadership

3. Laissez-Faire/ Free
Rein Leadership Style

When to use Laissez Faire/

Free Rein Style?

Limitations of Laissez Faire/

Free Rein Leadership Style

Early Leadership Theories

(contd)

Behavioral Theories (contd)

University of Michigan Studies
Identified two dimensions of leader behavior

Employee oriented: emphasizing personal

relationships
Production oriented: emphasizing task

accomplishment
Research findings:

Leaders who are employee oriented are strongly

associated with high group productivity and high job

satisfaction.

1723

Exhibit-162 (contd)Behavioral Theories of

Leadership

1724

The Managerial Grid

Managerial Grid
Appraises leadership styles using two dimensions:
Concern for people
Concern for production

Places managerial styles in five categories:

Impoverished management
Task management
Middle-of-the-road management
Country club management
Team management
1725

Exhibit 163
The
Managerial
Grid

1726

Contingency Theories of
Leadership

The Fiedler Model (contd)

Proposes that effective group performance

depends upon the proper match between the

leaders 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.

1727

Contingency Theories
(contd)

The Fiedler Model (contd)

Least-preferred co-worker (LPC) questionnaire
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

Situational factors in matching leader to the

situation:

Leader-member relations
Task structure
Position power
1728

Exhibit 164 Findings of the Fiedler Model

LPC

1729

Contingency Theories
(contd)

Hersey and Blanchards Situational

Leadership Theory (SLT)
Argues that successful leadership is achieved by

selecting the right leadership style which is

contingent on the level of the followers readiness.
Acceptance: leadership effectiveness depends on

whether followers accept or reject a leader.

Readiness: the extent to which followers have the

ability and willingness to accomplish a specific task.

Leaders must relinquish control over and contact

with followers as they become more competent.

1730

Contingency Theories
(contd)

Hersey and Blanchards Situational

Leadership Theory (SLT)
Creates four specific leadership styles

incorporating Fiedlers two leadership dimensions:

Telling: high task-low relationship leadership
Selling: high task-high relationship leadership
Participating: low task-high relationship leadership
Delegating: low task-low relationship leadership
1731

Contingency Theories
(contd)

Hersey and Blanchards Situational

Leadership Theory (SLT)
Posits four stages follower readiness:
R1: followers are unable and unwilling
R2: followers are unable but willing
R3: followers are able but unwilling
R4: followers are able and willing

1732

HerseyBlanchard Situational Leadership Model

Implementation:
Leadership Styles

Explanations

Situations

Telling
Emphasize task-oriented
behavior and be very directive
and autocratic

High task, Low

relationship

Unable, Unwilling
Members are new or
inexperienced, and need a lot of
help, direction, and encouragement
to get the job done.

Selling
Provides considerable input
about task but also emphasizes
human relations

High task, High

relationship

Unable & Willing

Members are a little more
responsible, experienced, and
willing to do the task but do not
have the necessary skills.

HerseyBlanchard Situational Leadership Model

Implementation:
Leadership Styles

Explanations

Situations

Participating
Less direction and more
collaboration

Low task, High

relationship

Able, Unwilling
Groups have the ability to do the
job but may be unwilling to start
or complete the task.

Delegating
Delegates responsibility to
group members and simply kept
informed of progress

Low task, Low

relationship

Able & Willing

They are self-sufficient and
competent

VIDEO

1735

Contingency Theories
(contd)

Path-Goal Model
States that the leaders job is to assist his or her

followers in attaining their goals and to provide

direction or support to ensure their goals are
compatible with organizational goals.

Leaders assume different leadership styles at

different times depending on the situation:

Directive leader
Supportive leader
Participative leader
Achievement oriented leader

1736

Exhibit 165 Path-Goal Theory

1737

Different behavior of
leaders in different
Directive leaders leads to greater
situations
satisfaction when:

Tasks are ambiguous or stressful

There is substantive conflict among
members
Subordinates with an external locus of
control

1738

Supportive leaders leads to greater satisfaction:

There is bureaucratic style
Subordinates are performing structured task
Participative leaders leads to greater
satisfaction :
There is internal locus of control in
subordinates
Achievement oriented leaders leads to greater
satisfaction:
Task are ambiguously structured, by setting
challenging goals, followers know what the
expectations are.
1739

Contemporary Views on
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 their own

self-interests for the good of the organization by

clarifying role and task requirements.
Leaders who also are capable of having a profound

and extraordinary effect on their followers.

1740

Contemporary Views
(contd)

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.
1741

Contemporary Views
(contd)

Visionary Leadership

A leader who creates and articulates a realistic,

credible, and attractive vision of the future that

improves upon the present situation.

Visionary leaders have the ability to:

Explain the vision to others.
Express the vision not just verbally but through

behavior.

Extend or apply the vision to different leadership

contexts.

1742

Contemporary Views
(contd)

Team Leadership Characteristics

Having patience to share information

Being able to trust others and to give up authority
Understanding when to intervene

Team Leaders Job

Managing the teams external boundary
Facilitating the team process
Coaching, facilitating, handling disciplinary problems,

reviewing team and individual performance, training, and

communication
1743

Exhibit 166

Specific Team Leadership Roles

1744

Leadership Issues in the

21st Century

Managing Power
Legitimate power
The power a leader has

as a result of his or her

position.
Coercive power
The power a leader has
to punish or control.
Reward power
The power to give
positive benefits or
rewards.

Expert power
The influence a leader

can exert as a result of

his or her expertise,
skills, or knowledge.
Referent power
The power of a leader
that arise because of a
persons desirable
resources or admired
personal traits.

1745

Developing Credibility and

Trust

Credibility (of a Leader)

The assessment of a leaders honesty,

competence, and ability to inspire by his or her

followers

Trust
Is the belief of followers and others in the integrity,

character, and ability of a leader.

Dimensions of trust: integrity, competence,

consistency, loyalty, and openness.

Is related to increases in job performance,

organizational citizenship behaviors, job

satisfaction, and organization commitment.
1746

Exhibit 167 Suggestions for Building Trust

Practice openness.
Be fair.
Speak your feelings.
Tell the truth.
Show consistency.
Fulfill your promises.
Maintain confidences.
Demonstrate competence.

1747

Providing Ethical
Leadership

Ethics are part of leadership when leaders

attempt to:
Foster moral virtue through changes in attitudes

and behaviors.
Use their charisma in socially constructive ways.
Promote ethical behavior by exhibiting their
personal traits of honesty and integrity.

Moral Leadership
Involves addressing the means that a leader

uses to achieve goals as well as the moral

content of those goals.

1748

Empowering Employees

Empowerment
Involves increasing the decision-making discretion

of workers such that teams can make key

operating decisions in develop budgets,
scheduling workloads, controlling inventories, and
solving quality problems.
Why empower employees?
Quicker responses problems and faster decisions.
Addresses the problem of increased spans of control

in relieving managers to work on other problems.

1749

Cross-Cultural
Leadership

Universal Elements of Effective Leadership

Vision
Foresight
Providing encouragement
Trustworthiness
Dynamism
Positiveness
Proactiveness
1750

Exhibit 168 Selected Cross-Cultural Leadership Findings

Korean leaders are expected to be paternalistic toward

employees.
Arab leaders who show kindness or generosity without being
asked to do so are seen by other Arabs as weak.
Japanese leaders are expected to be humble and speak
frequently.
Scandinavian and Dutch leaders who single out individuals
with public praise are likely to embarrass, not energize, those
individuals.
Effective leaders in Malaysia are expected to show compassion
while using more of an autocratic than a participative style.
Effective German leaders are characterized by high
performance orientation, low compassion, low self-protection,
low team orientation, high autonomy, and high participation.
1751

Gender Differences and

Leadership

Research Findings
Males and females use different styles:
Women tend to adopt a more democratic or

participative style unless in a male-dominated job.

Women tend to use transformational leadership.
Men tend to use transactional leadership.

1752

Exhibit 169 Where Female Managers Do Better: A Scorecard

Source: R. Sharpe, As Leaders, Women Rule, BusinessWeek, November 20. 2000, p. 75.

1753

Leader Training
More likely to be successful with individuals who
are high self-monitors than with low self-monitors.
Individuals with higher levels of motivation to lead
are more receptive to leadership development
opportunities
Can teach:
Implementation skills
Trust-building
Mentoring
Situational analysis

1754

Substitutes for
Leadership
Follower characteristics

Experience, training, professional orientation, or the

need for independence

Job characteristics

Routine, unambiguous, and satisfying jobs

Organization characteristics

Explicit formalized goals, rigid rules and procedures or

cohesive work groups

1755