ORGANIZATIONAL THEORY

& BEHAVIOUR
LEADERSHIP
Edmodo.com

1
 MANAGEMENT
• Management and administration are not the
same. Management is concerned primarily with
results and taking calculated risks. This means
that managers do certain things in order to get
results for themselves and others. This may
include a variety of management activities.

• Managers also evaluate various things in order

to try and minimise risks and improve output.

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 ADMINISTRATION
• On the other hand, administration is concerned with
procedures, accountability and risk avoidance. This
means that in proper administration, actions are
carried out according to the correct procedures. If part
of the procedure is not followed, people will be held
accountable.

• Here there is no need for creativity, or initiative, since

things have to be done in accordance with prescribed
ways. This is in keeping with the Scientific
Management School, and the belief that there is one
best way.
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 ADMINISTRATION
• The key difference is that management aims at taking
calculated risks, whereas administration aims at
avoiding it completely in order to ensure a proper and
effective administration process.

• This leads to bureaucracy, and more concern for the

means than the ends, with persons loosing sight of the
overall objective or goals.

• As with administration and management, management

and leadership are not the same. The role of
management is to promote stability or to enable the
organisation to run smoothly, whereas the role of
leadership is to promote adaptive or useful changes.
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 LEADERSHIP
Other differences include managers tend to adopt
impersonal or passive attitudes towards goals.
Leaders adopt a more personal and active attitude
towards goals.

Managers maintain a low level of emotional

involvement. Leaders have empathy with other people
and give attention to what events and actions mean.

Leadership is a special case of interpersonal influence

that gets an individual or group to do what the leader
or manager wants done. 5
 LEADERSHIP
• It is the activity of influencing people to strive
willingly for group objectives. It is interpersonal
influence exercised in a situation and directed
through the communication process, toward the
attainment of a special goal or goals.

• However it should be noted that while

leadership can be viewed as a function of
personality, it can also be seen as a behaviour.

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 LEADERSHIP
• Leadership can be described as a dynamic process in a
group whereby one individual influences the others to
contribute voluntarily to the achievement of group tasks
in a given situation. The leadership process is a function
of the leader, the follower, and other situational
variables.

• Formal leadership is exerted by persons appointed to or

elected to positions of formal authority in organizations.
Informal leadership is exerted by persons who become
influential because they have special skills that meet the
resource needs of others.
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 LEADERSHIP
• In certain situations even though a person may
not be the formal leader others may rely on that
individual because of their leadership qualities.

• More recently, formal leadership has

increasingly been associated not with
command and control, but with the concept of
inspiration, of getting along with other people
and creating a vision with which others can
identify. That is the future or prospect is in
keeping with their expectation. 8
 TYPES OF LEADERS
• The Charismatic leader, whose influence springs
mainly from personality, e.g. Napoleon, Hitler,
Churchill, Billy Graham and others. The difficulty with
charismatic leadership is that few people possess the
exceptional qualities required to transform all around
them into willing followers!

• Another issue is that personal qualities, or traits, of

leadership cannot be acquired by training, they can
only be modified by it. There are very few charismatic
leaders, some who are seen as charismatic are in fact
individuals with high Mach personalities exploiting
loosely structured environmental situations. 9
 TYPES OF LEADERS
• The Traditional leader, whose position is
assured by birth, e.g., kings, queens and tribal
chieftains. This is another category to which
few people can aspire. Except in the small
family business, there are few opportunities
for traditional leadership at work.

• The traditional leader is assured of his

position due to inheritance or birth rights, but
may not possess the required abilities to
influence others. 10
 TYPES OF LEADERS
• The Situational leader, whose influence can only be
effective by being in the right place at the right time.
This kind of leadership is too temporary in nature to
be of much value in a business. What is looked for
is someone who is capable of assuming a leadership
role in a variety of situations over a period of time.

• Opportunist with limited attributes may emerge in

times of crisis. Some persons would appear to be a
leader in certain crisis, however once the crisis is
over, they are incapable of influencing those around
them. This has resulted in certain leaders gaining
reputation as CEO for specific purposes. 11
 TYPES OF LEADERS
• The Appointed leader, whose influence arises directly
out of his position e.g., most managers and
supervisors. This is the bureaucratic type of
leadership, where legitimate power springs from the
nature and scope of the position within the hierarchy.

• The problem here is that, although the powers of the

position may be defined, the job-holder may not be
able to implement them because of weak personality,
lack of adequate training or other factors. These
appointments sometimes lead to incompetent
individuals being appointed, Commonly referred to as
square pegs in round holes. 12
 TYPES OF LEADERS
• The Functional leader, who secures his
leadership position by what he does, rather
than by what he is. In other words, a
functional leader adapts his behaviour to meet
the competing needs of his situation. Possess
the needed skills and knowledge required and
then makes adjustment as is needed to
address varying situations.

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 LEADERS
• So often we find good leaders coming in pairs, a doer
and a thinker, who as individuals cannot be
successful. The thinker has great conceptual skills,
and is endowed with creativity, on the other hand the
doer may also possess these skills, but is more
effective or prefer to be actively involved with the
implementation or realization of the idea.

• Leader may also be time tellers or clock builders. In

the absence of the time teller, the other players would
be unable to continue in the same direction. However
if the clock builder is not around, others can carry on
because they understand the intentions of their
predecessor. 14
 LEADERSHIP PERSPECTIVES
• Traditional leadership perspectives include trait,
behavioural and situational or contingency
theories. New leadership perspectives include
attribution theory, charismatic approaches and
transformational leadership.

• Trait Perspectives assume that traits play a

central role in differentiating between leaders
and non-leaders (leaders must have the “right
stuff”) or in predicting leader or organisational
outcomes. 15
 TRAIT PERSPECTIVES
• Leaders tend to be energetic and to operate on an
even keel. They crave power not as an end in itself but
as a means to achieving a vision or desired goals.

• Leaders also are very ambitious and have a high need

for achievement. At the same time, they have to be
emotionally mature enough to recognize their own
strengths and weaknesses, and they are oriented
toward self-improvement. To be trusted they must
have integrity; without trust, they cannot hope to
maintain the loyalty of their followers.
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 TRAIT PERSPECTIVES
• Leadership traits per se, suggested that there
were certain characteristics, such as physical
energy or friendliness that were essential for
effective leadership.

• These inherent personal qualities, like

intelligence, are felt to be transferable from one
situation to another. Since all individuals did not
have these qualities, only those who had them
would be considered to be potential leaders.
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 TRAIT PERSPECTIVES
• Leaders also must not be easily discouraged.
They need to stick to a chosen course of action
and to push toward goal accomplishment. At
the same time, they must be cognitively sharp
enough to deal well with the large amount of
information they receive.

• However, they do not need to be brilliant; they

just need to show above-average intelligence.
In addition, leaders must have a good
understanding of their social setting. 18
 TRAIT PERSPECTIVES
• Finally, they must possess lots of specific
knowledge concerning their industry, firm, and
job. Under the traits approach it is assumed
that leaders are born and not made.

• Of those traits, which do appear more

frequently, intelligence, energy and
resourcefulness are perhaps the most
representative.
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 BEHAVIOURAL THEORIES
• The behavioural perspective assumes that
leadership is central to performance and other
outcomes. In this case, however, instead of
dealing with underlying traits, behaviours are
considered.

• The Michigan Studies, which sought to identify

the leadership pattern that results in effective
performance derived two basic forms of leader
behaviours; employee centered and production
centered. 20
 THE MICHIGAN STUDIES
• Employee-centered supervisors are those who
place strong emphasis on their subordinates
welfare. They pay more attention to
relationships at work, less direct supervision
and encourage employees participation in
decision-making.

• In contrast production-centered supervisors are

more concerned with getting the work done.
Employee-centered supervisors are found to
have more productive work groups than do
production centered supervisors. 21
 THE MICHIGAN STUDIES
• Sometimes, the more general terms human
relations oriented and task oriented are used to
describe these alternative leader behaviours.
These two orientations parallel the authoritarian
(task) and democratic (relationships) concepts
of the leader behaviour.

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 THE OHIO STUDIES
• The Ohio Studies were conducted to describe
leadership behaviour from which two distinct
groupings of behaviour emerged. These were
Consideration and Initiating Structure.

• A highly considerate leader is sensitive to people’s

feelings, which is indicative of friendship, mutual trust,
respect, and warmth in relationship between the
leader and the members of his staff. This entails
participation and two-way communication and, much
like the employee-centered leader, tries to make
things pleasant for his or her followers. 23
 THE OHIO STUDIES
• A leader high in initiating structure is more
concerned with defining task requirements and
other aspects of the work agenda; he or she
might be seen as similar to a production-
centered supervisor.

• The leader’s behaviour is one of delineating the

relationship between himself and members of
the work-group, and in endeavouring to
establish well-defined patterns of organization,
channels of communication, an methods of 24
procedure.
 THE OHIO STUDIES
• Unlike the Michigan studies the two dimensions
of Consideration and Initiating Structures are
separate dimensions. High on one dimension
does not necessitate being low on the other. A
leader’s behaviour could be described as any
mix of both dimensions. They are dimensions of
observed behaviour as perceived by others. As
such a high-consideration, high-structure style
is often desirable.

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LEADERSHIP GRID APPROACH
• Using the Robert Blake and Jane Mouton leadership
grid approach concern for people are placed on the
vertical axis and concern for production on the
horizontal axis.

• Five different types of leadership based on concern for

production (task) and concern for people
(relationships) are located in the four quadrants.

• A person with a 9/1 concern for people/concern for

production is termed a country “club manager”.
(thoughtful attention to needs of people for satisfying
relationships leads to comfortable friendly organization
atmosphere and work tempo) 26
 LEADERSHIP GRID APPROACH
• ) A 1/1 position is an “impoverished manager style,”
(this entails exertion of minimum effort to get required
work done) and a 1/9 position is a “task management
style.” (efficiency in operations results from arranging
conditions of work in such a way that human elements
interfere to a minimum degree)

• A 5/5 position is “middle of the road” (adequate

organization performance is possible through
balancing the necessity to get out work, while
maintaining morale of people at a satisfactory level)
and a 9/9 “team manager”, high on both dimensions,
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is considered ideal.
 THE HARVARD STUDIES
• The Harvard Studies which address small
group behaviour, identified two distinct groups
of leaders: task leaders and socioemotional
leaders, who were mutually exclusive. A
person could not be a task leader and a
socioemotional leader as well.

• The task leader showed a concern for the

structuring of activities, whereas, the
socioemotional leader showed concern for
supportive relationships. 28
 THE HARVARD STUDIES
• These two types of leader corresponded closely
to the types defined by the Ohio studies that is,
Initiating Structure and Consideration, but,
unlike those studies, the Harvard results
suggested that the two dimensions were
mutually exclusive.

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LEADER-MEMBER EXCHANGE (LMX)
APPROACH
• Another perspective that emphasizes the
centrality of leadership on outcomes is Graen’s
Leader-Member Exchange (LMX) approach.
LMX theory focuses on the quality of working
relationship between leaders and followers.

• The LMX 7 scale assesses the degree to which

leaders and followers have mutual respect for
each other’s capabilities, feel a deepening
sense of mutual trust, and have a strong sense
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of obligation to one another.
LEADER-MEMBER EXCHANGE (LMX)
• Taken together, these dimensions determine the
extent to which followers will be part of the leader’s “in
group” or “out group”.

• In-group followers tend to function as assistants,

lieutenants, or advisers and to have higher quality
personalised exchanges with the leader than do out-
group followers.

• The out-group followers tend to emphasise more

formalised job requirements and a relatively low level
of mutual influence exists between leaders and out-
group followers. 31
LEADER-MEMBER EXCHANGE (LMX)
• Research suggests that high-quality LMX is
associated with increased follower satisfaction
and productivity, decreased turnover, increase
salaries, and faster promotion rates.

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 CROSS CULTURAL IMPLICATIONS
• It is important to consider how well the kinds of
behavioural dimensions discussed earlier transfer
internationally.

• Some work in the United States, Britain, Hong Kong,

and Japan shows that the behaviours must be carried
out in different ways in alternative cultures.

• For instance, British leaders are seen as considerate if

they show subordinates how to use equipment,
whereas in Japan the highly considerate leader helps
subordinates with personal problems. Similarly, LMX
theory has been shown to operate in Japan. 33
 CONTINGENCY APPROACHES
• Functional, or Action-centered Leadership is
based on the theory that leadership is more a
question of appropriate behaviour than of
personality or of being in the right place at the
right time.

• The functional model, however, distinguishes

the concern for individuals from the concern for
groups, and stresses that effective leadership
lies in what the leader does to meet the needs
of task, group and individuals. 34
 THE FUNCTIONAL MODEL
• The key features of the functional model can be
summarised as follows:-
• Task, Group and Individuals Needs are fulfilled
in the context of a total leadership situation.
The circumstances of each situation affect the
priority, which attaches to each area of needs.

• An effective leader is one who is aware of these

priorities and who can act in accordance with
them. For example, in a situation of great
urgency, task needs much predominate over
group and individual needs.
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 THE FUNCTIONAL MODEL
• In another situation, such as the re-building of a
football team, it is group needs which must come
first, then individual needs with task needs last. The
model thus encourages a flexible style of leadership,
which may be relatively task-orientated or group-
orientated or individual-orientated, depending on
circumstances.

• Task functions directed towards task needs, include

activities such as the setting of objectives, the
planning of tasks, the allocation of responsibilities
and setting of appropriate standards of performance.
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 THE FUNCTIONAL MODEL
• Group maintenance functions directed towards
group needs, include activities such as team-building
and motivation, communication, discipline, and
acting as group representative to others outside the
boundaries of the unit.

• Individual maintenance functions, directed towards

the needs of individuals, include activities such as
coaching, counselling, motivation and development.

• Based on this model prioritizing of needs in relation

to a given situation is important if the leader is to be
effective, thus the need for flexibility from one 37
situation to another.
 SITUATIONAL CONTINGENCY
THEORIES
• The trait and behavioural perspective assume that
leadership, by itself, would have a strong impact on
outcomes. However, another development in
leadership thinking recognised, that leader traits and
behaviours can act in conjunction with situational
contingencies – other important aspects of the
leadership situation – to predict outcomes.

• House and Aditya argue that the effects of traits are

enhanced by their relevance to the leader’s situational
contingencies. Achievement motivation should be
most effective for challenging tasks that require
initiative and require assumption of personal
responsibility for success.
38
 SITUATIONAL CONTINGENCY
THEORIES
• Here we are looking at individuals who may be high
achievers and therefore need challenging task.

• Leader flexibility should be most predictive in unstable

environments or when leaders lead different people
over time. Flexibility should be predictable when things
are not routine or similar, allowing individuals to
anticipate what may happen.

• Prosocial power motivation is likely to be most

important in complex organisations where decision
implementation requires lots of persuasion and social
influence. “Strong” or “weak” situations also make a
difference.
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 FIEDLER’S LEADERSHIP
CONTINGENCY THEORY
• Fred Fiedler’s work on situational contingency holds
that group effectiveness depends on an appropriate
match between a leader’s style (essentially a trait
measure) and the demands for the situation. Different
situations require different approaches or style.

• Fiedler considers situational control – the extent to

which a leader can determine what his or her group is
going to do as well as the outcomes of the group’s
actions and decisions. Fiedler uses an instrument
called the least preferred co-worker (LPC) scale to
measure a person’s leadership style. 40
 FIEDLER’S LEADERSHIP
CONTINGENCY THEORY
• Fiedler argues that high LPC leaders (those
describing their LPC very positively) have a
relationship-motivated style, whereas low-LPC
leaders have a task-motivated style.

• A task-motivated leader tends to be non-directive in

high control situations and directive in moderate-
and low control situations.

• In low control situations due to the likelihood of

persons not doing what they are suppose to do,
which can affect performance, the leader will be
more directive. A relationship-motivated leader tends
to be the opposite. 41
 FIEDLER’S LEADERSHIP
CONTINGENCY THEORY
• According to Fiedler, the three most important
variables in determining the relative
favourableness of the situation are:-
• Leader-member relations

• Degree of structure in task and

• Power and authority of the position

42
 FIEDLER’S LEADERSHIP
CONTINGENCY THEORY
• These three situational variables can produce
eight possible combination of situations, of
which the most favourable to the leader is when
(1) he has good leader-member relations, (2)
the task is highly structured, and (3) he has a
powerful position.

• By comparison, the least favourable conditions

are when (1) he is disliked, (2) the task is
relatively unstructured and (3) he has little
position power. 43
 FIEDLER’S COGNITIVE RESOURCE
THEORY
• Fiedler recently moved beyond his contingency
theory by developing the cognitive resource theory.
Cognitive resources are abilities or competencies.
According to this approach, whether a leader should
use directive or non-directive behaviour depends on
the following situational contingencies:-

• the leader’s or subordinate group members’ ability

or competency,
• stress
• experience,
• group support of the leader
44
COGNITIVE RESOURCE THEORY
• Basically, cognitive resource theory is most useful
because it directs us to leader or subordinate group-
member ability, an aspect not typically considered in
other leadership approaches.

• The theory view directiveness as most helpful for

performance when the leader is competent, relaxed,
and supported. In this case, the group is ready, and
directiveness is the clearest means of communication.
In such a situation they are more receptive and willing
to accept instructions and guidance.
45
COGNITIVE RESOURCE THEORY
• When the leader feel stressed, he or she is diverted.
In this case, experience is more important than
ability. The leader is not focus, and has to rely on
previous or similar situations to deal with the current.

• If support is low, then the group is less receptive,

and the leader has less impact. Group-member
ability becomes most important when the leader is
non-directive and receives strong support from
group members. Reliance is placed on others to
assist in achieving goals or objectives. In such a
situation the role of other team members is
46
important.
COGNITIVE RESOURCE THEORY
• If support is weak, then task difficulty or other
factors have more impact than do either the
leader or the subordinates.

47
 AUTHORITARIAN-DEMOCRATIC
• Three examples of this approach to management style
are as follows:

• D. McGregor’s Theory X manager – tough, autocratic

and supporting tight controls with punishment-reward
systems – the authoritarian.

• The contrasting style is that of the Theory Y manager

– benevolent, participative and believing in self-
controls – the democrat. These styles flow from the
assumptions about people that are the original basis
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of Theory X and Theory Y.
 THEORY X AND THEORY Y.

• McGregor’s Theory X and Theory Y are

essentially sets of assumptions about
behaviour. He sees two noticeably different
sets of assumptions made by managers about
their employees.

• The first set regards employees as being

inherently lazy, requiring coercion and control,
avoiding responsibility and only seeking
security. This is Theory X.
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 THEORY X AND THEORY Y.
• The second set of assumptions sees Man in a
more favourable light. In this case employees
are seen as liking work, which is as natural as
rest or play.

• They do not have to be controlled and coerced,

if they are committed to the organisation’s
objectives; under proper conditions they will not
only accept but also seek responsibility; more
rather than less people are able to exercise
imagination and ingenuity at work. These are
assumptions of Theory Y 50
 RENSIS LIKERT’S FOUR
MANAGEMENT SYSTEMS
• System 1 - the exploitive-authoritative
system, which is the epitome of the
authoritarian style.

• System 2 - the benevolent-authoritative

system, which is basically a
paternalistic style.

• System 3 - the consultative system, which

moves towards greater democracy
and teamwork. 51
 MANAGEMENT SYSTEMS
• System 4 - the participative-group system,
which is the ultimate democratic
style.

• Exploitive-authoritative where power and

direction come from the top downwards,
where threats and punishment are employed,
where communication is poor and teamwork
non-existent. Productivity is mediocre.
52
 MANAGEMENT SYSTEMS
• Benevolent-authoritative is similar to the above and
allows some upward opportunities for consultation
and some delegation. Rewards may be available as
well as threats. Productivity is fair to good but at
cost of considerable absenteeism and turnover.

• Consultative where goals are set or orders issued

after discussions with subordinates, where
communication is both upwards and downwards and
where teamwork is encouraged, at least partially.
Some involvement of employees as a motivator.
Productivity is good with only moderate absenteeism
etc.
53
 MANAGEMENT SYSTEMS
• Participative-group is the ideal system. Under this
system, the keynote is participation, leading to
commitment to the organisation’s goals in a fully co-
operative way. Communication is good both
upwards, downwards and laterally. Motivation is
obtained by a variety of means. Productivity is
excellent and absenteeism and turnover are low.

• Other styles of leadership includes

• Autocratic, here the manager alone exercises
decision-making and authority for determining policy
procedures for achieving goals, work tasks and
relationships, control of reward and punishment. 54
 STYLES OF LEADERSHIP
• Democratic group members have a greater say
in decision-making, determination of policy,
implementation of systems and procedures.
Power is more with the group as a whole, and
facilitates greater interaction within the group.

• The normative leadership styles do not take into

consideration cultural differences, particularly
customs and traditions as well as the level of
education and the standard of living.
55
 ATTRIBUTION THEORY AND
LEADERSHIP
• Leadership prototype is an image people have in their
minds of what a model leader should look like. People
have a mental picture of what makes a “good leader”
or ways in which “real leaders” would act in a given
situation. The view that people have an image in their
minds of what a model leader should look like is
sometimes called a leadership prototype.

• The closer the behaviour of a leader is to the implicit

theories of his or her followers, the more favourable
the leader’s relations and key outcomes tend to be.
56
 LEADERSHIP TRANSITIONS
• The new leadership emphasises charismatic
and transformational approaches and various
aspects of vision related to them. The new
leadership is considered especially important in
changing and transforming individuals and
organisations with a commitment to high
performance.

57
 CHARISMATIC APPROACHES
• Charismatic leaders are those who, by force of their
personal abilities, are capable of having a profound
and extraordinary effect on followers.

• A three-stage charismatic leadership model.

• In the initial stage, the leader critically evaluates the

status quo. Deficiencies in the status quo lead to
formulations of future goals. Before developing these
goals, the leader assesses available resources and
constraints that stand in the way of the goals. The
leader also assesses follower abilities, needs, and
satisfaction levels. 58
 CHARISMATIC LEADERSHIP
MODEL.
• In the second stage, the leader formulates and
articulates the goals along with an idealised future
vision. Here the leader emphasises articulation and
impression management skills.

• Then in the third stage, the leader shows how these

goals and the vision can be achieved. The leader
emphasises innovative and unusual means to
achieve the vision.

• Leaders with whom followers have close contact and

those with whom they seldom, if ever, have direct
contact are both described as charismatic but
possess quite different traits and behaviours. 59
 TRANSFORMATIONAL VERSUS
TRANSACTIONAL APPROACHES
• Transactional leadership has four dimensions:

• Contingent rewards: Providing various kinds of

rewards in exchange for mutually agreed upon
goal accomplishment. Positive reinforcement
strategy is applied.

• Active management by exception: Watching for

deviations from rules and standards and taking
corrective action. 60
 TRANSACTIONAL LEADERSHIP

• Passive management by exception:

Intervening only if standards are not met.

• Laissez-faire: relinquishing responsibilities

and avoiding decision.

61
TRANSFORMATIONAL LEADERSHIP
• Transformational leadership occurs when
leaders broaden and elevate followers’ interest
and stir followers to look beyond their own
interests for the good of others.

• Transformational leadership has four

dimensions: charisma, inspiration, intellectual
stimulation, and individualised consideration.

62
TRANSFORMATIONAL LEADERSHIP
• Charisma provides vision and a sense of
mission, and it instils pride, along with follower
respect and trust.

• Inspiration communicates high expectations,

uses symbols to focus efforts, and expresses
important purposes in simple ways.

• Intellectual stimulation promotes intelligence,

rationality, and careful problem solving. 63
TRANSFORMATIONAL LEADERSHIP
• Individualised consideration provides personal
attention, treats each employee individually,
and coaches and advises.

• Transformational leadership is likely to be

strongest at the top-management level, where
there is the greatest opportunity for proposing
and communicating a vision. However, it is
not restricted to the top level; it is found
throughout the organization.
64
TRANSFORMATIONAL LEADERSHIP
• Furthermore, transformational leadership
operates in combination with transactional
leadership. Leaders need both
transformational and transactional leadership in
order to be successful, just as they need both
leadership and management,

65