MN 5201 Organisational Behaviour and Management

Lecture 3:
Leadership

Dr. Dushan Jayawickrama

 Introduction

Today leadership has become the most

important factor for success of any
organization than ever before. It is a well-
known fact that successes of many nations,
countries, societies and organizations were
backed by successful leaders in different
time periods.
Cont.

The concept of leadership continues to evolve

as the needs of organizations change. Among
all the ideas and writings about leadership,
three aspects stand out – people, influence and
goals.

Leadership occurs among people, involves the

use of influence and is used to attain goals”.
(Daft, 2011: )
 Definition of Leadership

“The ability to influence people toward the

attainment of goals” (Daft, 2011).
Leadership for Contemporary Times

The concept of leadership evolves as the

needs of the organizations change. The
environmental context in which leadership is
practiced influences which approach might be
most effective, as well as what kinds of
leaders are most admired by society.
 Level 5 Leadership

Level 5
Executive

Effective Leader
Competent
Manager

Contributing
Team Member

Highly Capable
Individual
What
What Is
Is Leadership?
Leadership?
Leadership
The ability to influence a
group toward the
achievement of goals.

Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.
Leadership
Leadership and
and Management
Management
Management and leadership are both important to
organizations. Effective managers have to be leaders,
too, because distinctive qualities are associated with
management and leadership that provide different
strengths for the organization.
Cont.
Cont.
Leader Qualities Manager Qualities

• Soul • Mind
• Visionary • Rational
• Passionate • Consulting
• Creative • Persistent
• Flexible • Problem solving
• Inspiring • Tough-minded
• Innovative • Analytical
• Courageous • Structured
• Imaginative
• Deliberate
• Experimental
• Authoritative
• Stabilizing
• Initiates change
• Position power
• Personal power
 Power
Power and
and Influence
Influence

Power – Potential ability to influence the

behavior of others.

Influence – Effect a person’s action have on

the attitudes, values, beliefs or behavior of
others.
 Five
Five Sources
Sources of
of Power
Power

Position Personal
Power Power
• Legitimate • Expert
Power Power
• Reward • Referent
Power Power
• Coercive
Power
“A
“A leader
leader is
is aa dealer
dealer in
in
hope.”
hope.”
-- Napoleon
Napoleon
Trait
Trait Theories
Theories
Traits Theories of
Leadership
Theories that consider
Leadership
LeadershipTraits:
Traits:
personality, social,
physical, or intellectual •• Extraversion
Extraversion
traits to differentiate •• Conscientiousness
Conscientiousness
leaders from nonleaders. •• Openness
Openness
•• Emotional
Emotional
Intelligence
Intelligence
(qualified)
(qualified)
 Trait
Trait Theories
Theories

Limitations
Limitations::
•• No
Nouniversal
universaltraits
traitsfound
foundthat
thatpredict
predict
leadership
leadershipin inall
allsituations.
situations.
•• Unclear
Unclearevidence
evidenceof ofthe
thecause
causeand
andeffect
effect
of
ofrelationship
relationshipof ofleadership
leadershipand
andtraits.
traits.
•• Better
Betterpredictor
predictorof ofthe
theappearance
appearanceof of
leadership
leadershipthan
thandistinguishing
distinguishingeffective
effective
and
andineffective
ineffectiveleaders.
leaders.
 Trait
Trait Approach
Approach
 Traits (examples)
– Extraversion
– Conscientiousness
– Openness
 Assumption: Leaders are born
 Goal: Select leaders
 Problems
– Traits do not generalize across situations
– Better at predicting leader emergence than leader
effectiveness
 Behavioral
Behavioral Theories
Theories
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from nonleaders.

•• Behavioral
Behavioraltheory:
theory:
Leadership
Leadershipbehaviors
behaviorscan
canbe
be
taught.
taught.
Vs.
Vs.
Trait
Traittheory:
theory:
Leaders
Leadersare
areborn,
born,not
notmade.
made.
 Behavioral
Behavioral Approach
Approach

 Ohio State Studies/U. of Michigan

– Initiating Structure/Production Orientation
– Consideration/Employee Orientation
 Assumption: Leaders can be trained
 Goal: Develop leaders
 Problem: Effective behaviors do not generalize across
situations
Ohio
Ohio State
State Studies
Studies

Initiating Structure
The extent to which a leader is
likely to define and structure his
or her role and those of sub-
ordinates in the search for goal
attainment.

Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect
for subordinate’s ideas, and regard for their feelings.
University
University of
of Michigan
Michigan Studies
Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a
personal interest in the needs of employees and
accepting individual differences among members.

Production-Oriented Leader
One who emphasizes technical
or task aspects of the job.
 The
The
Managerial
Managerial
Grid
Grid
(Blake
(Blakeand
andMouton)
Mouton)

E X H I B I T 12–1
E X H I B I T 12–1
 CONTINGENCY
CONTINGENCYTHEORIES
THEORIES
 All Consider the Situation
– Fiedler’s Contingency Model
– Cognitive Resource Theory
– Hersey and Blanchard’s Situational Leadership Model
– Path Goal Theory

Assumptions underlying the different models:

Fiedler: Leader’s style is fixed
Other’s: Leader’s style can and should be changed
 Fiedler
Fiedler Model
Model
 Leader: Style is Fixed (Task oriented vs. Relationship
oriented)
 Considers Situational Favorableness for Leader
– Leader-member relations
– Task structure
– Position power

 Key Assumption
– Leader must fit situation; options to accomplish
this:
– Select leader to fit situation
– Change situation to fit leader
Fiedler’s
Fiedler’s Model:
Model: The
The Leader
Leader
Assumption: Leader’s Style is Fixed & Can
be Measured by the Least Preferred Co-
Worker (LPC) Questionnaire

Least Preferred Co-Worker (LPC)

Questionnaire
The way in which a leader will
evaluate a co-worker that is not
liked will indicate whether the
leader is task- or relationship-
oriented.
Fiedler’s
Fiedler’s Model:
Model: Defining
Defining the
the Situation
Situation

Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.

Task Structure
The degree to which the job assignments are
procedurized.

Position Power
Influence derived from one’s formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.
 Findings of the Fiedler Model
Good
Task-Oriented
Performance

Relationship
-Oriented
Poor
Favorable Moderate Unfavorable

• Category I II III IV V VI VII VIII

• Leader-Member Good Good Good Good Poor Poor Poor Poor
Relations
• Task Structure High High Low Low High High Low Low
• Position Power Strong Weak Strong Weak Strong Weak Strong Weak
 Cognitive
Cognitive Resource
Resource Theory
Theory
Cognitive Resource Theory
A theory of leadership that states that the level of
stress in a situation is what impacts whether a
leader’s intelligence or experience will be more
effective.

Research
ResearchSupport
Support: :
• • Less intelligent individuals perform better in leadership
Less intelligent individuals perform better in leadership
roles
rolesunder
underhigh
highstress
stressthan
thando
domore
moreintelligent
intelligent
individuals.
individuals.
• • Less experienced people perform better in leadership
Less experienced people perform better in leadership
roles
rolesunder
underlow
lowstress
stressthan
thando
domore
moreexperienced
experiencedpeople.
people.
 Contingency
Contingency Approach:
Approach: Hersey
Hersey &
& Blanchard
Blanchard
Situational
Situational Model
Model
 Considers Leader Behaviors (Task & Relationship)
– Assumes Leaders CAN change their behaviors
 Considers Followers as the Situation
– Follower Task maturity (ability & experience)
– Follower Psychological maturity (willingness to take
responsibility)

Assumptions
–Leaders can and should change their style to fit their
followers’ degree of readiness (willingness and ability)
–Therefore, it is possible to TRAIN leaders to better fit their
style to their followers.
Hersey
Hersey and
and Blanchard’s
Blanchard’s Situational
Situational Leadership
Leadership
Theory
Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness; the more “ready” the followers (the
more willing and able) the less the need for leader
support and supervision.

LOW Amount of Follower Readiness HIGH

Amount of Leader
Support &
HIGH Supervision Required LOW
Leadership
Leadership Styles
Styles and
and Follower
Follower Readiness
Readiness
(Hersey
(Hersey and
and Blanchard)
Blanchard)
Follower Unwilling Willing
Readiness

Able Supportive
Monitoring
Participative

Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations
Leader–Member
Leader–Member Exchange
Exchange Theory
Theory
Leader-Member Exchange (LMX) Theory
•Leaders select certain followers to be “in”
(favorites)
Based on competence and/or compatibility &
similarity to leader
•“Exchanges” with these “In” followers will be higher
quality than with those who are “Out”
•RESULT: “In” subordinates will have higher
performance ratings, less turnover, and greater job
satisfaction
Leader-Member
Leader-Member Exchange
Exchange Theory
Theory
Path-Goal
Path-Goal Theory
Theory

Premise
• Leader must help followers
attaining goals and reduce
roadblocks to success
•Leaders must change behaviors to
fit the situation (environmental
contingencies & subordinate
contingencies)
The
The Path-Goal
Path-Goal Theory
Theory