Chp 17: Managers As Leaders

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• Define leader and leadership

• Compare and contrast early theories of leadership
• Describe the three major contingency theories of
leadership
• Describe contemporary views of leadership
• Discuss contemporary issues affecting leadership

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 Famous Leaders
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⚫ Joseph Stalin
⚫ Winston Churchill
⚫ Queen Victoria
⚫ Nelson Mandela
⚫ Adolf Hitler
⚫ Martin Luther King
⚫ Alex Ferguson
⚫ Richard Branson
⚫ Tony Blair
⚫ Steve Jobs
⚫ Ratan Tata
⚫ Dhirubhai Ambani
⚫ Azimji Premji
⚫ Prince Al-Waleed Bin Talal
⚫ Mohammad Bin Rashid Al Maktoum

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 Does Leadership Matter?
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⚫60-70% of employees report that their immediate

supervisor is the most stressful aspect of their job

⚫Leadership can influence: productivity,

absenteeism, turnover, stress, litigation, apathy,
quality of work life, job satisfaction, motivation,
organizational commitment.

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 What Exactly is Leadership?
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“Leadership is one of the most observed and least

understood phenomena on earth.”
James MacGregor Burns (1978)

⚫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.

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 Leading vs. Managing
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⚫ Lead: “going in front” derived from the Anglo Saxon root ‘Laed’
meaning path or road. Leadership is “the ability to lead”
⚫ Manage: derived from the Latin word ‘manus’ meaning hand -
suggesting control

⚫ Differentiation: Other useful distinctions are made by Bennis

and Nanus (1985) who propose that “Managers are people who
do things right and leaders are people who do the right thing”
and Guest (1987) who suggests that “Leaders influence
commitment whereas managers carry out position
responsibilities and exercise authority” .

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 Leading vs. Managing (cont.)
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Management Leadership
Planning & Establishing
budgeting direction
Organising & staffing Aligning people
Controlling & Motivating &
problem-solving inspiring
Order & predictability Change

(Adapted from Kotter, 1990)

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 Early Leadership Theories (cont.)
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⚫Trait Theories (1920s -1930s)

⚪ Research focused on identifying personal characteristics
that differentiate 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

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 Seven Traits Associated with Leadership
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 Early Leadership Theories (cont.)
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⚫ 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 an democratic
leader, than autocratic.

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 Behavioral Theories (cont.)
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⚫Ohio State Studies- Identified two dimensions of

leader behavior:
1. Initiating structure: the role of the leader in
defining his or her role and the roles of group
members.
2. Consideration: the leader’s mutual trust and
respect for group members’ ideas and
feelings.

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 Behavioral Theories ‘Ohio State’ (cont.)
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Consideration Initiating Structure

⚫friendly ⚫defining roles
⚫supportive ⚫standards
⚫welfare ⚫deadlines
⚫consulting ⚫coordinating
⚫acting ⚫follow procedures
⚫new approaches

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 Behavioral Theories ‘Ohio State’ (cont.)
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 Mixed Results of Ohio State Studies
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⚫High consideration/high structure leaders generally,

but not always, achieved high scores on group task
performance and satisfaction.
⚫Evidence indicated that situational factors appeared
to strongly influence leadership effectiveness.

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 University of Michigan Studies
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⚫ Identified two dimensions of a leader’s behavior:

1. Employee oriented: emphasizing personal relationships
2. Production oriented: emphasizing task accomplishment
⚫ Research findings:
⚪ Leaders who are employee oriented are strongly associated with high
group productivity and high job satisfaction.

Blake & Mouton (1964):

concern for people
vs.
concern for productivity

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 The Managerial Grid
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⚫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

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Blake & Mouton 9,9 (Team management):
Managerial Grid 5,5: Adequate organisation work accomplishment is from
(1964) perfor- committed people; interdepend-
mance is possible through balancing ence through a “common stake”
1,9 (Country club the necessity to get out work with in organisation purpose leads to
17 of people at a
maintaining morale
management): relationships of trust and respect.
thoughtful attention to needs of satisfactory level.
people for satisfying relationships
leads to a comfortable friendly
organisation atmosphere
tempo.
Hig
h 9
8
.
and work
.
.
7
Concern for 6
People 5
4

. .
3
2
1
Lo
w Lo 1 2 3 4 5 6 7 8 9 Hig
w h
Concern for production
9,1 (Task management):
1,1: Impoverished management- efficiency in operations
exertion of minimum effort to results from arranging
get required work done is appropriate conditions of work in such
to sustain organisation membership. a way that human elements
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interface to a minimum degree.
 Behavioral Theories of Leadership
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 Behavioral Theories of Leadership (cont.)
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 Contingency Theories of Leadership
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⚫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 of Fielder Model:
⯍ 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.

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 The Fiedler Model (cont.)
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⚫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: degree of confidence, trust and respect
for the leader.
⯍ Task structure: the degree of job formalization.
⯍ Position power: the degree of influence a leader has on hiring,
firing, discipline, promotions, salary increment.

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 The Fiedler Model (cont.)
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Each leadership situation was evaluated in terms of these three contingency variables,
which when combined produced eight possible situations that were either favorable or
unfavorable for the leader. Situations I, II, and III were classified as highly favorable for
the leader. Situations IV, V, and VI were moderately favorable for the leader. Situations VII
and VIII were described as highly unfavorable for the leader.

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 Contingency Theories of Leadership
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⚫Hersey and Blanchard’s 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.

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 Situational Leadership Theory (SLT)
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⚫ Creates four specific leadership styles incorporating Fiedler’s two leadership
dimensions:
⚪ Telling (high task-low relationship leadership)- Define clear roles and tell how,
what and where to do various tasks.
⚪ Selling- (high task-high relationship leadership)- Provide both directive and
supportive behavior.
⚪ Participating- (low task-high relationship leadership)- Participative decision
making, and two way communication.
⚪ Delegating (low task-low relationship leadership)- Provide little direction or
support.
⚫ Four stages of follower readiness:
⚪ R1: followers are unable and unwilling, use Telling Style
⚪ R2: followers are unable but willing, use Selling Style
⚪ R3: followers are able but unwilling, use Participating Style
⚪ R4: followers are able and willing, use Delegating Style

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 Contingency Theories of Leadership
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⚫Path-Goal Model
⚪ States that the leader’s job is to assist his or her followers
in attaining their goals and to provide direction or
support to ensure that their goals are compatible with
those of the organization
⚪ Depending on the situation, leaders assume different
leadership styles at different times.

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 Contingency Theories of Leadership (cont.)
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⚫Directive Leader: Conveys clear message to

subordinates, schedules work to be done, and
provides specific guidance.
⚫Supportive Leader: Shows concern for the needs of
followers.
⚫Participative Leader: Decisions are made through
group consultation.
⚫Achievement Oriented Leader: Sets challenging
goals, and expecting followers to perform optimally.

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 Path-Goal Model
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 Contemporary Views of Leadership
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⚫Transactional Leadership
⚪ Leaders who guide or motivate their followers in the direction
of established goals by clarifying role and task requirements.
⯍ Keeps track of all mistakes
⯍ Provides me with assistance in exchange for my efforts
⯍ Enforces rules to avoid mistakes
⯍ Tells me what to do to be rewarded for my efforts
⚫Transformational Leadership
⚪ Leaders who stimulate and inspire (transform), followers to
achieve extraordinary outcomes. Who pushes followers to
break out from their comfort zone and achieve the highest
possible results.

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Components of Transformational Leadership
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1. Individualised consideration: The leader treats each follower on

his or her own merits, and to develop each follower through
mentoring, coaching and delegation.

2. Intellectual stimulation: The leader encourages free thinking, and

emphasises reasoning before any action is taken.
 
3. Inspirational motivation: The leader creates an optimistic, clear
and attainable vision of the future, thus encouraging others to raise
their expectations.
 
4. Idealised influence, or charisma: The leader makes personal
sacrifices, takes responsibility for his or her actions, shares any
glory, and shows great determination.

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 Differences
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⚫ Transformational
Leader
⚫ Public & private
acknowledgement of
achievements (Higher level
needs)
⚫ Delegate tasks for
supporters to act
autonomously or in small
groups
⚫ Encourages change &
thinking outside of the box
⚫ Concerned with ideas over
processes
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⚫ Transactional Leader
⚫ Rewards &
punishments(Low-level
needs)
⚫ Micro-manages team to
ensure preset standards
are met
⚫ Avoids change, works to
keep things the same.
⚫ Concerned with processes
over ideas
 Research
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⚫ Transformational leaders are more effective

⚫ Higher performers
⚫ More promotable than their transactional counterparts
⚫ More interpersonally sensitive.
⚫ Strong correlation with lower turnover rates
⚫ Higher levels of productivity
⚫ Employee satisfaction
⚫ Creativity
⚫ Goal attainment
⚫ Follower well-being

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 Contemporary Views of Leadership
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⚫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

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 Contemporary Views of Leadership
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⚫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

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 Leadership and Power
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⚫ Legitimate Power : Similar to authority. Legitimate power

represents the power a leader has as a result of his or her position in
the organization.
⚫ Coercive Power :is the power a leader has to punish or control.
Followers react to this power out of fear of the negative results that
might occur if they don’t comply
⚫ Reward power is the power to give positive rewards. A reward can
be anything that a person values such as money, favorable
performance appraisals, promotions, interesting work assignments,
friendly colleagues, and preferred work shifts or sales territories
⚫ Expert power is power that’s based on expertise, special skills, or
knowledge
⚫ Referent power is the power that arises because of a person’s
desirable resources or personal traits.

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 Developing Trust
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⚫Credibility (of a Leader)- The assessment of a

leader’s honesty, competence, and ability to inspire by his
or her followers
⚫Trust- 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

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 Building Trust
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 Gender Differences and Leadership
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⚫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.

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 Identify Their Leadership Styles
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 Terms to Know
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⚫ leader
⚫ leadership
⚫ behavioral theories
⚫ autocratic style
⚫ democratic style
⚫ laissez-faire style
⚫ initiating structure
⚫ consideration
⚫ high-high leader
⚫ managerial grid
⚫ Fiedler contingency model
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⚫ least-preferred co-worker
(LPC) questionnaire
⚫ leader-member relations
⚫ task structure
⚫ position power
⚫ situational leadership
theory (SLT)
⚫ readiness
⚫ leader participation model
⚫ path-goal theory
⚫ transactional leaders
 Words of Wisdom!!!
The art of leadership is saying no, not saying yes. It is very
easy to say yes. —Tony Blair

True leadership lies in guiding others to success. In

ensuring that everyone is performing at their best, doing
the work they are pledged to do and doing it well. —Bill
Owens

Thank You ☺!!!

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