CH 13

13
Effective
Leadership
Learning Outcomes
After studying this chapter, you should be able to:

 Define the concepts of leading and leadership, and
explain their significance to an organization
 Identify the differences between management and
leadership, and the traits of managers and leaders
 Identify the characteristics of effective leaders
 Explain the early theories of leadership
Principles of Management (Third Edition) All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2018 13–3
Introduction
Definition
• able to influence subordinates or behaviours of
others
– Group
• workgroups such as a manager and his/her
subordinates, for example in a HR department or
Quality department
– Goal
• stress on a group goal that has to be
accomplished

Differences between
Management and Leadership
 Manage
– to direct or control a business or
department, and its people, equipment and
the money involved
 Leading
– the action where a person takes charge of a
situation or activity and leads the people
involved towards a goal

Differences between Management
and Leadership (cont.)
 Characteristics of management:
– planning and budgeting
– organizing and staffing
– controlling and problem-solving
– produces a degree of predictability and order

Differences between Management
and Leadership (cont.)
 Characteristics of leadership:
– establishing direction
– aligning people
– motivating and inspiring
– produces change

Traits of Managers and
Leaders
MANAGERS LEADERS
 Does not insure imagination,  Uses personal power to influence
creativity or ethical behavior. the thoughts and actions of others.
 Rationally analyses a situation,  Intuitive, mystical

while developing a systematic
understanding of what needs to
selection of goals and purposes
(i.e. what is to be done). be done.
 Directs energy towards goals,  Directs energy towards

resources and organization
providing guidance to people in
structures, and determining the
achieving practical solutions.
problems to be solved.

Leaders (cont.)
MANAGERS LEADERS
 Influences people through altering
 Influences people through the
moods, and evoking images and
use of logic, facts and reason. expectation.
 Views work as a means of
 Views work as an enabling process,
developing fresh approaches to old
involving a combination of ideas,
problems or finding new options for
skills, timing and people.
old issues.
 Takes in emotional signals from

 others, making them mean
Has a low level of emotional
something in the relationship
involvement in their work.
with an individual; often
passionate about their work.

Leaders (cont.)
MANAGERS LEADERS
 Relates to people by the role

 Relates to people in intuitive
they play in a sequence or in a
decision-making process. and empathic ways.
 Focuses on ‘how’ things need to  Focuses on ‘what’ needs to be done,

be done. leaving decisions to people involved.
 Focuses attention to decisions to be

 Focuses attention to procedures. made.
 Communicates through the use of

 Communicates with subordinates
‘messages’ heightening the
indirectly using signals
emotional responses
Adaptability of
Malaysian Leaders
 Malaysia has come a long way—from its
labour-driven days of the agriculture era in the
1960s and 70s to the investment-driven
industrial era in the 1980s.
 Then its productivity-driven technology era in
the 1990s, leading to the knowledge era of the
2000s

Characteristics of
Effective Leaders
A good leader:
• has an exemplary character
• is enthusiastic about his/her work or cause, and also
about his/her role as leader
• is confident
• is able to function in an orderly and purposeful manner
in situations of uncertainty
• is tolerant of ambiguity and remains composed, calm
and steadfast to the main purpose
• while keeping the main goal in focus, is able to think
analytically
• is committed to excellence
The Theories of Leadership
 Interesting developments in leadership emerged

during the early part of the 20th century.
 Early leadership theories focused on the qualities
which distinguished leaders from followers, while
subsequent theories looked at other equally
important variables, such as situational factors
and skill levels.

The Trait Theory of
Leadership
 The trait theory of leadership assumes that

people inherit certain qualities and traits which
make them better suited to leadership.
 The earliest phase of the trait theory was known
as the “great man theory” (1800s), followed by
the next phase in the 1930–40s.

The Trait Theory of
Leadership (cont.)
Stogdill’s Traits Skills
list of traits Adaptable to Dominant Clever Organized
and skills situations
critical to Alert to social Energetic Conceptually Persuasive
leaders environment skilled
Ambitious and Creative Socially
achievement oriented skilled
Assertive Persistent Diplomatic and
tactful
Cooperative Self-confident Speaks fluently
Decisive Tolerant to stress Knowledgeable
Dependable Willing to assume

responsibility

The Trait Theory of
Leadership (cont.)
 Four primary traits of successful leaders (McCall and
Lombardo, 1983)
Traits What are they?
Emotional stability Calm, confident and predictable, particularly
and composure under stress
Admitting error Owning up to mistakes, rather than spending
energy covering them up
Good interpersonal Good interpersonal skills: Able to communicate
skills and persuade others without resorting to
negative or coercive tactics
Intellectual breadth Able to understand a wide range and areas,
rather than having a narrow (and narrow-
minded) area of expertise
The Trait Theory of
Leadership (cont.)
 Eight competencies of effective leaders

Behavioural Theory of
Leadership
 Behavioural perspectives of
leadership centre on the actions of
leaders, not their physical or
psychological traits.

Types of leadership behaviours identified by the Ohio State Study:
Consideration Initiating structure
Leaders characterized by: Leaders characterized by:
• Having respect for their • Clarifying their roles and their
employees’ ideas subordinates’ roles
• Developing mutual trust between • Focusing on organizational structure
a superior and his subordinates and the operating procedures and to
• keep things under control all the time
• Being very concerned over their • Their main focuses are on completion
employees’ feelings of tasks and meeting deadlines.
• Ensuring the inner needs of their • The employees’ motivation and inner
employees are satisfied needs are still looked into but not
seen as major priorities.
• Motivating employees by using
human relations approaches while
maintaining focus on tasks and
the results
Leadership (cont.)
 Types of leadership behaviours identified by the University
of Michigan Study:
People-oriented Task-oriented
(Consideration) (Initiating structure)
Leaders that stress on Leaders that stress on task
developing interpersonal completion and emphasize on
relationships, making an effort the technical and task aspects
to take personal interest in of a job.
employees’ needs as well as
acknowledging and
appreciating individual
differences.

Leadership (cont.)
 The Blake and Mouton Managerial Grid

Leadership (cont.)
 There are five leadership styles associated with the
Managerial Grid:
• Impoverished Management
• Country Club Management
• Authority/Obedience (Autocratic Management)
• Organization Man Management/Middle of the Road
Management
• Team Management/Democratic
Management/Participative Management

Leadership (cont.)
 Even though there are limitations to the grid, there are
seven leadership behaviours which provide the basis for
some of the managerial roles:
• Initiative
• Inquiry
• Advocacy
• Decision-making
• Conflict resolution
• Critique
• Resilience

The Contingency Theory
of Leadership
 Contingency perspectives of leadership concentrate on
specific variables related to the environment, which may
determine the style of leadership that is best suited for a
particular situation.
 Four contingency theories:
• Fred Fiedler’s Leader–Follower Situational Contingency
Model
• Paul Hersey and Kenneth Blanchard’s Situational
Leadership Theory or the Life-Cycle Leadership Theory
• Robert House’s Path–Goal Leadership Model
• Vroom–Yetton Participative Leadership Theory
The Contingency Theory
of Leadership (cont.)
Contingency Perspective
Fiedler Model
• Least preferred co-worker (LPC) questionnaire
Hersey–Blanchard Situational Theory
• Directing/Telling
• Coaching/Selling
• Participating/Supporting
• Delegating

Early Theories of
Leadership (cont.)
Leader Participation Model

• A leader’s behaviour must adjust to reflect
the task structure
Path–Goal Model
• Directive leader
• Supportive leader
• Participative leader
• Achievement-orientated leader

The Contemporary Theories
of Leadership
The theories to be discussed are:
TheLeader–Member Exchange Theory (the
LMX Model)
The Transformational Leadership Theory
• The difference between a transactional
leader and a transformational leader.
• Theory of charismatic leadership.

The Leader–Member
Exchange Theory (The LMX
Leadership Model)
 Developed by Dansereau, Graen and Haga.
 Concerned with how leaders can reap (establish) and
maintain their leadership position through relationships
the leaders develop with their staff, employees, followers,
associates or supporters.
 A leader’s actions are not the same towards all of his/her
followers and will be reflected in their trust, loyalty,
support, respect and obligation they show towards their
followers.
 Thus, leaders will create in-groups (cadre) and out-groups
(hired hands) relationships.
The Transformational
Leadership and the Transactional
Leadership Theories
 Developed by James Macgregor Burns, both theories
involve an exchange between leaders and their followers.
 A transformational leader: visionary, inspiring,
charismatic, a risk taker, an entrepreneur, seeks to
overcome his/her self-interests and avoids coercion in
motivating followers but offers moral rewards with a focus
on the beliefs, needs and values of the followers.
 A transactional leader: gives orders and expects them to
be followed and offers tangible rewards for compliance.

Leadership and the Transactional Leadership Theories (cont.)
 In 1985, industrial psychologist Bernard Bass expounded

further on the transformational leader, and identified and
wrote about four basic elements that underlie
transformational leadership:
• Inspirational motivation
• Intellectual stimulation
• Idealized influence
• Individualized considerations

 Theory of charismatic leadership

• Charismatic leaders are leaders who inspire, develop
trust and instil commitment in their followers.
• A charismatic leader relies on their charm and is very
good at persuading or influencing their followers.
• Charismatic leaders engage in charm and personality
and portray strong commitment towards creating
positive change in a belief.

 Common attributes found in a charismatic leader

• Confident
• Creative
• Visionary
• Strong-minded
• Effective communicator

Gender Differences In
Leadership
Some differences between male and female

leaders include:
• Attitudes towards tasks versus relationships
• Decision-making styles
• Leadership styles
• Communication styles
• Emotion and perception


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13

After studying this chapter, you should be able to:

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

 Rationally analyses a situation,  Intuitive, mystical

 Directs energy towards goals,  Directs energy towards

Principles of Management (Third Edition) All Rights Reserved

 Takes in emotional signals from

Principles of Management (Third Edition) All Rights Reserved

 Relates to people by the role

 Focuses on ‘how’ things need to  Focuses on ‘what’ needs to be done,

 Focuses attention to decisions to be

 Communicates through the use of

Principles of Management (Third Edition) All Rights Reserved

 Interesting developments in leadership emerged

Principles of Management (Third Edition) All Rights Reserved

 The trait theory of leadership assumes that

Principles of Management (Third Edition) All Rights Reserved

Decisive Tolerant to stress Knowledgeable

Dependable Willing to assume

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Leader Participation Model

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

Principles of Management (Third Edition) All Rights Reserved

 In 1985, industrial psychologist Bernard Bass expounded

Principles of Management (Third Edition) All Rights Reserved

 Theory of charismatic leadership

Principles of Management (Third Edition) All Rights Reserved

 Common attributes found in a charismatic leader

Principles of Management (Third Edition) All Rights Reserved

Some differences between male and female

Principles of Management (Third Edition) All Rights Reserved

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