CHAPTER 8

LEADERSHIP

Reporters: Luna, Jan Kierve

Perez, Abegail
Salazar, John Paul
Undecimo, Rachell
 The Nature of Leadership

We usually attribute the success or

failure of an organization to its leaders.
When a company or an athletic team is
successful, for example, it is the
president or coach who receives much of
the credit. These individuals are also
subject to criticism if the company does
not meet its goals or the team has a
 Leadership
The process of providing
general direction and
influencing individuals or
groups to achieve goals.
Warren Bennis, who has studied
leadership for a number of years,
suggests that effective leaders are
concerned with “doing the right
things” rather than “doing things
right.”
 The right things, according to Bennis,
include the following:
• Creating and communicating a vision of
what the organization should be
• Communicating with and gaining the
support of multiple constituencies
• Persisting in the desired direction even
under bad conditions
• Creating the appropriate culture and
obtaining the desired results
TRAIT THEORY OF LEADERSHIP

At one time, it was thought that

some people were born with certain traits
that made them
effective leaders, whereas others were
born without leadership traits.
 Traits Associated with
Leadership

Energy, Intelligence,
Achievement, Aggressiveness,
Drive, Integrity,
Initiative, Interpersonal
Sense of humor skill

Judgment,
Enthusiasm
Appearance, Persistence,
Adaptability, Prestige, Verbal
Insightfulness, fluency,
Tolerance for Extraversion,
stress Self-confidence,
Tact
 Nevertheless, the notion of leadership
traits has been revived in recent years.
Research has demonstrated that leaders
usually are different from other people. It is
now believed, however, that many of the
traits (or characteristics) that are possessed
by leaders can be learned or developed.
IMPORTANT LEADERSHIP TRAITS CAN BE
CATEGORIZED AS:
 DRIVE

It refers to the amount of ambition,

persistence, tenacity, and initiative that
people possess. Leaders must have the
energy and will to continue to act during
turbulent and stressful times. Drive and
ambition are also important to a leader’s
ability to create a vision and engage in
behavior to achieve the vision.
 LEADERSHIP MOTIVATION
Leadership motivation refers to a
person’s desire to lead, influence others,
assume responsibility, and gain power. We
must distinguish here between two types of
motives. Leaders can have a socialized
power motive, whereby they use power to
achieve goals that are in the organization’s
best interests or in the best interests of
followers. In contrast, a leader with a
 INTEGRITY
Leaders with honesty are truthful
and maintain consistency between what
they say and what they do. Followers and
others in the organization are not
likely to trust a leader who does not have
these characteristics.
 SELF-CONFIDENCE
Leaders must be confident in
their actions and show that
confidence to others. People who are
high in self-confidence are also able
to learn from their mistakes, react
positively to stress, and remain
even- tempered and display
appropriate emotions.
 COGNITIVE ABILITY

Leaders who possess a high degree

of intelligence are better able to
process complex information, solve
problems, and deal with changing
environments.
KNOWLEDGE OF THE DOMAIN

Knowledge of the domain in which

they are engaged allows leaders to make
better decisions, anticipate future
problems, and understand the
implications of their actions.
 OPENNESS TO NEW
EXPERIENCES

Being open to new ideas and

approaches is associated with flexibility,
which can be very important in today’s
dynamic world.
 EXTRAVERSION

Leaders who enjoy being around

people, prefer to maintain a vigorous
pace, and seek excitement are more likely
to be proactive in engaging both
problems and opportunities.
 CHARISMA

It is usually defined by the effect it

has on followers. Charismatic leaders
inspire their followers to change their
needs and values, follow visionary
quests, and sacrifice their own personal
interests for the good of the cause.
BEHAVIORAL THEORIES OF
LEADERSHIP
 JOB-CENTERED LEADERSHIP STYLE

A behavioral leadership style that

emphasizes employee tasks and the methods
used to accomplish them.
A job-centered leader supervises
individuals closely (provides instructions,
checks frequently on performance) and
sometimes behaves in a punitive manner
toward them.
 EMPLOYEE-CENTERED LEADERSHIP
STYLE
A behavioral leadership style that
emphasizes employees’ personal needs
and the development of interpersonal
relationships.
 INITIATING STRUCTURE
A behavioral leadership style
demonstrated by leaders who establish
well-defined patterns of organization and
communication, define procedures, and
delineate their relationships with those
being led.
 CONSIDERATION
A behavioral leadership style
demonstrated by leaders who express
friendship, develop mutual trust and
respect, and have strong interpersonal
relationships with those being led.
CONTINGENCY THEORIES OF
LEADERSHIP
 CONTINGENCY THEORY OF
LEADERSHIP EFFECTIVENESS

A theory of leadership that suggests

that the effectiveness of a leader depends on
the interaction of his style of behavior with
certain characteristics of the situation.
 LEADER STYLE

Different leaders may, of course,

exhibit different styles of behavior.
Fiedler explains that
leaders’ behavior is based on their
motivational needs. The most important
needs of leaders, according to Fiedler, are
interpersonal-relationship needs and
task-achievement needs.
 SITUATIONAL
CHARACTERISTICS
In some situations, leaders have more control
over the work environment. In the context of
Fiedler’s contingency theory, this means that
leaders can influence events in a straightforward
way and work systematically toward desired
outcomes.
Important situational characteristics that
determine a leader’s level of control include leader–
member relations, task structure, and position
power.
LEADER–MEMBER RELATIONS

The degree to which a leader is

respected, is accepted as a leader, and
has friendly interpersonal relations.
 TASK STRUCTURE

The degree to which

tasks can be broken down
into easily understood
steps or parts.
 POSITION POWER

The degree to which a leader can

reward, punish, promote, or demote
individuals in the unit or
organization.
 SITUATIONAL FAVORABLENESS

The amount of control a leader has

determines the favorableness of the
situation. In the most favorable
situations, leader–member relations are
good, the tasks are highly structured,
and the leader has strong position power.
In the least favorable situations, leader–
member relations are poor, tasks are
LEADERSHIP EFFECTIVENESS

The leader’s effectiveness is

determined by the interaction of the
leader’s style of behavior and the
favorableness of the situational
characteristics. The leader’s effectiveness
is judged
by the performance of the group being
 THE PATH–GOAL LEADERSHIP
THEORY
Emphasizes a
leader’s effects on
subordinates’ goals and
the paths used to achieve
those goals. It provides
a bridge to the modern
study of leadership.
 A theory of leadership based on
expectancy concepts from the study of
motivation, which suggests that leader
effectiveness depends on the degree to
which a leader enhances the performance
expectancies and valences of her
subordinates.
 LEADERSHIP CAN AFFECT EMPLOYEES’
EXPECTANCIES AND VALENCES IN SEVERAL
WAYS:

• Facilitating employees’ efforts to achieve

task goals (effort : performance expectancy).
Effective leaders help employees (through
encouragement, training,
and technical direction, for example) believe
that their efforts on a task will lead to goal
attainment. As part of this, leaders address
any barriers perceived by a given employee.
• Tying extrinsic rewards (pay raise,
recognition, promotion) to
accomplishment of task goals
(performance : reward instrumentality).
• Linking individuals to tasks for which
goal attainment is personally valuable
(valence). In other words, leaders can
assign individuals to tasks that they will
find rewarding.
 LEADER BEHAVIOR AND
SITUATIONAL FACTORS

The path–goal leadership theory focuses

on several types of leader behavior and
situational
factors. The main types of leader
behavior are as follows:
 DIRECTIVE LEADERSHIP
BEHAVIOR

Characterized by implementing
guidelines, providing information on
what is expected, setting definite
performance standards, and ensuring
that individuals follow the rules.
SUPPORTIVE LEADERSHIP
BEHAVIOR

Characterized by
being friendly and
showing concern for well-
being, welfare, and needs.
 ACHIEVEMENT-ORIENTED
LEADERSHIP
Behavior is characterized by setting
challenging goals and seeking to improve
performance.
 PARTICIPATIVE LEADERSHIP
BEHAVIOR
Characterized by sharing
information, consulting with those who
are led, and emphasizing group decision
making.
 INTERACTION OF LEADER BEHAVIOR
AND SITUATIONAL FACTORS

Path–goal theory specifies a number

of interactions between leader behavior
and situational factors, with these
interactions influencing outcomes.
Researchers, however, have provided only
mixed support for the theory, with some
studies supporting it and others failing to
support it. Relationships that appear to
 Associates with an internal locus of
control (who believe outcomes are a
function of their own behavior) are likely
to be more satisfied with a participative
leader.
Individuals with an external locus of
control (who believe outcomes are a
function of chance or luck) are more
likely to be effective with directive
 Associates who have a high need for
affiliation are likely to be more satisfied
with a supportive leader. Supportive
leaders fulfill their needs for close
personal relationships.
 Associates with a high need for
security probably will be more satisfied
with a directive leader who reduces
uncertainty by providing clear rules and
procedures.
 Supportive and participative leaders
are more likely to increase satisfaction
on highly structured tasks. Because the
tasks are routine, little direction is
necessary. Directive leaders are more
likely to increase satisfaction on
unstructured tasks, where individuals
(particularly those with less experience
and ability) often need help in clarifying
an ambiguous task situation.
 Directive leadership is often more
effective on unstructured tasks because it
can increase an employee’s expectation
that effort will lead to task-goal
accomplishment (particularly when
employees have less experience and/or
ability). Supportive
leadership is often more effective on
structured tasks because it can increase a
person’s expectation that accomplishing
 Associates with a high need for
growth who are working on a complex
task probably perform better with a
participative or achievement-oriented
leader.
Because they are intrinsically
motivated, they appreciate information
and difficult goals that help in
achievement. Individuals with a low
growth need strength working on a
 TRANSACTIONAL LEADERSHIP
This type of leadership focuses
primarily on leaders’ extrinsic exchange
relationships with followers— that is,
the degree to which leaders provide what
followers want in response to good
performance.
 TRANSACTIONAL LEADERS HAVE THE
FOLLOWING FOUR SPECIFIC
CHARACTERISTICS:
1. They understand what followers want
from their work, and they attempt to deliver
these rewards if deserved.
2. They clarify the links between
performance and rewards.
3. They exchange rewards and promises of
rewards for specified performance.
4. They respond to interests of followers
 TRANSFORMATIONAL
LEADERSHIP
Involves motivating followers to do
more than expected, to continuously
develop and grow, to increase their level
of self-confidence, and to place the
interests of the unit or organization
before their own.
 TRANSFORMATIONAL LEADERS DO
THE FOLLOWING THREE THINGS:
1. They increase followers’ awareness of the
importance of pursuing a vision or mission
and the strategy required.
2. They encourage followers to place the
interests of the unit, organization, or larger
collective before their own personal
interests.
3. They raise followers’ aspirations so that
they continuously try to develop and improve
THREE CHARACTERISTICS HAVE BEEN
IDENTIFIED WITH TRANSFORMATIONAL
LEADERS:

Charisma, Intellectual Stimulation,

and Individual Consideration
 CHARISMA

Refers specifically to
the leader’s ability to
inspire emotion and
passion in his followers
and to cause them to
identify with the leader.
 INTELLECTUAL STIMULATION

The leader’s ability to increase the

followers’ focus on problems and to
develop new ways of addressing them.
 Leaders showing INDIVIDUAL
CONSIDERATION provide
individualized attention to followers,
focus on followers’ strengths, and act as
teachers and coaches.
 THE LIST OF COMMON BEHAVIORS OF
TRANSFORMATIONAL LEADERS:
1) Transformational leaders articulate a clear
and appealing vision, which is beneficial to
the followers.
2) They communicate the vision through
personal action, emotional appeals, and
3) symbolic forms of communication (such as
metaphors and dramatic staged events).
4) They delegate signifi cant authority and
responsibility.
6) They provide coaching, training, and
other developmental experiences to
followers.
7) They encourage open sharing of ideas
and concerns.
8) They encourage participative decision
making.
9) They promote cooperation and teamwork.
10) They modify organization structure (such
as resource allocation systems) and
policies (such as selection and promotion
 The proactive and energetic nature
of transformational leadership hints at
an opposite approach, called LAISSEZ-
FAIRE or PASSIVE-AVOIDANT
LEADERSHIP.
Leaders displaying a laissezfaire
style are not proactive, react only to
failures or chronic problems, avoid
making decisions, and are often absent
or uninvolved in followers’ activities.
 LEADER–MEMBER EXCHANGE

A model of leadership focused on

leaders developing more positive
relationships with some individuals and
having more positive exchanges with
these individuals (and likely the opposite
with the other members).
 SERVANT LEADERSHIP
Similar to authentic leadership, servant
leadership overlaps with the transformational
tradition. It includes elements such as valuing
individuals, developing people, building
community, conceptualizing, exhibiting foresight,
and displaying wisdom. Its distinctive focus,
however, lies with an emphasis on serving others,
both inside and outside the organization.
 GENDER EFFECTS ON LEADERSHIP
STRUCTURAL–CULTURAL MODEL

A model holding that because women

often experience lack of power, lack of
respect, and certain stereotypical
expectations, they develop leadership
styles different from those
of the men.
 SOCIALIZATION MODEL

A model proposing that all leaders

in a particular Organization will display
similar leadership styles, because all
have been selected and socialized by the
same organization.
GLOBAL DIFFERENCES IN
LEADERSHIP
1. ANGLO CLUSTER (Australia, Canada,
England, Ireland, New Zealand, South Africa
[white sample], and United States): The ideal
leader demonstrates charismatic influence
and inspiration while encouraging
participation. Ideal leaders are viewed as
being diplomatic, delegating authority, and
allowing
everyone to have their say.
2. ARABIC CLUSTER (Egypt,
Morocco, Kuwait, and Qatar, with Turkey
also being included with these Arabic
countries): Ideal leaders need to balance
a paradoxical set of expectations. On one
hand, they are expected to be charismatic
and powerful, but on the other, they are
expected not to differentiate themselves
from others and to have modest styles.
Leaders are also expected to have a great
deal of power and to direct most
3. GERMANIC CLUSTER
(Austria, Germany, the Netherlands,
and Switzerland): The ideal leader is one
who is charismatic and participative, and
who conceptualizes her relationships in a
team-like fashion.
4. SOUTHERN ASIA CLUSTER
(India, Indonesia, Iran, Malaysia,
Philippines, and Thailand): The ideal
leader is humane, participative, and
charismatic. Leaders are expected to be
benevolent while maintaining a strong
position of authority.