Leadership and Decision Making

Leadership and Decision
Making
“Leadership is the art of getting someone
else to do something you want done
because he wants to do it.”
~ Dwight Eisenhower
Dr. Nuttawuth Muenjohn
Course Coordinator:
School of Management
RMIT University
E-mail: nuttawuth.muenjohn@rmit.edu.au
RMIT University©
Teaching Visit – Topics (week 01-week 03)
1. Course Introduction – structure, content and

assessment
2. Week 01- Nature and Importance of Leadership –
definition, importance, effectiveness
3. Week 02 - Leadership traits, behaviours, styles –
4. Week 03 – Contingency Leadership –
5. Extra - Power and Influence –
RMIT University© School of Management 3

Course Canvas
Course Guide
Readings
Lecture slides
Class Material
Learning activities
VDO cases
4
Slide 4
What is available on the course website?
What is available on the course website?

Teaching Schedule
• Week 01 - Course Introduction & Nature of Leadership
• Week 02 - Leadership traits, behaviours and attributes
• Week 03 - Contingency and Situational Leadership
• Week 04 - Charismatic and Transformational leadership
• Week 05 - Leadership power and influence
• Week 06 - Leadership and Ethics
• Week 07 - Leading Team
• Week 08 – Followership
• Week 09 - International and Culturally diverse aspects of Leadership
• Week 10 – Decision Making (1)
• Week 11 – Decision making (2)
• Week 12 - Exam information and Industry Guest Speaker
BUSM3195 Leadership and Management Slide 7

Recommended textbook
Dubrin et al – CP1071 - Leading for
Change (1st edition or 2nd edition),
Cengage Learning Australia, 2016,
Compiled by Nuttawuth Muenjohn:
0170380130 / 9780170380133
The textbook is a custom publication of

chapters from several books to match
the needs of this course

Other Resources
As the writing on leading for change is extremely wide and

varied it is not possible to find a single text that covers all
the areas in this course. However, the prescribed text is
very useful and a good starting point
A substantial initial list of references is provided and
students will be required to read widely from this list
and undertake their own research via the library data
bases especially for very recent material or for more
extensive material in a particular area. This is especially
important when researching the literature for your
assessment tasks.
Slide 9
Assessments
• TO PASS THIS COURSE:
• achieve an aggregate mark of 50% or
more overall assessments
10
Slide 10
Assessments
Assessment Task Due Date Weighting
One: Case Study Analysis Friday, 10%

Week 5
Two: Leadership: Development Friday, 50%

Plan Week 9
Three: Examination TBA 40%
Slide 11
Assessment Task One
• Due Date: Week 05

• Type: Group (3-4 students)
• Weighting: 10%
• Length: 1,000 words
• Forming groups –
–You are required to form your group with members in your
class – Forming groups across classes IS NOT
ALLOWED.
–You are required to ‘self-register’ on Course Canvas.
–You must select a group leader. The leader will submit the
assignment.

Assessment Task One
• You are required to analyse a case study and answer the case questions.
See more details on Course Canvas.
• Case Study: Foreign Auto Shop (see full case on MyRMIT/Course
BlackBoard)
• Case Questions:
• Part One
– What is the usual leadership situation in the auto repair shop (consider the
nature of the task, subordinates, and environment)? Describe Alan’s
typical leadership style and evaluate whether it is appropriate for the
leadership situation.
• Part Two
– Describe Alan’s leadership style during the flood and evaluate whether it
is appropriate for the leadership situation.
•

Assessment Task One
• It is expected that you will use at least 3 academic references. Websites,

such as Wikipedia, will not be accepted, other than for providing general
details and these will not be counted in the minimum references required.
• Structure:
– Case Title
– Group members (one member nominated as group leader who will
submit the assignment)
– Questions 1
– Answer
– Question 2
– Answer
– References

Assessment Task Two
Leadership: Development Plan
• Due Date: Friday, Week 09

• Type: Individual
• Weighting: 50%
• Length: 2,500 words

Assessment Task Two
• This assessment is designed and developed based on

‘Industry feedback’
• 3 stages of learning process:
• Stage one - Observation: Learning outcome of this stage is
that you are challenged to apply and link the theories in this
course with your observation.
• Stage Two – Development Plan: Expected to learn not only
from your role model’s experience but also to be able to
develop a plan for self improvement
• Stage Three - Fedback: Critically evaluate leadership theories
and practices and understand how to improve your own
leadership skills and qualities.

Stage One: Observation
• Identify a person who you consider to be a successful or

effective leader.
• This leader could be someone you can observe in person
or from your past experience or a public figure or
someone you have read about same qualifier as above.
• From your research and/or observation, critically analyse:
–What makes this person a good leader?
–What you perceive this person’s leadership traits,
behaviours and qualities;
–How the person uses power and influence to make
him/her an effective leader.

Stage Two – Development Plan
• For the second stage, First, using ideas and knowledge you have
gained from the course and what you learnt from the first stage to guide
you, you are required to diagnose and assess your current strengths
and weaknesses as a leader (or potential leader).
• To identify your leadership strengths and weaknesses, you will
complete the ‘leadership diagnostic tools provided (see Canvas for the
diagnostic tools).
• Second, you are then required to create a leadership development plan.
• The plan must at least maintain or further develop your leadership
strengths and improve weaknesses.
• The plan should consist of key components such as timeframe,
activities, goals and measurement indicators etc. (see Canvas for
Suggested Development Plan template).

Stage Three – Feedback
• In the final stage, you must seek feedback on your plan from a leader.
• This leader could be the same person as Stage One or a different
leader.
• To assist with the feedback stage, you should provide the leader with
the ‘Feedback Checklist’ (see Canvas).
• At this stage, you must:
– Describe what and how you have incorporated this leader’s
feedback into your plan;
– Describe how you will evaluate whether or not you have reached
the level of development set out in your plan (e.g. how will you
know that you’ve achieved the goals set out in your leadership
development plan? what kind(s) of data and information will inform
this?)

Assessment Task Two
Format:
This assignment should have the following format:
1) Introduction
2) Body with headings and sub-headings (e.g. Observation, Leadership
Development Plan; Feedback)
3) Conclusion
4) References
5) Appendix (Your leader’s feedback on the Feedback Checklist form)
Note: 4), 5) and Leader Background Information are not included in the word
count.
• Referencing:
• It is expected that you will use at least 10 academic references, preferably
refereed journal/research articles. Websites, such as Wikipedia, will not be
accepted, other than for providing general details of the leaders and these will
not be counted in the minimum references required.

Important Note
• In Week 05, you are required to submit background

information of your leader who will provide feedback on
your plan via the course Canvas (~200 words). You do
not need to identify the person (e.g. name). However, you
must provide background information of your role model
(e.g. position, leadership experience, organisation
information etc.). A penalty of 2% out of 50% may apply if
you fail to submit the background information.

Submission of assignments
• You are asked to submit both assignments in soft copy

by 7.00 pm Singapore time.
• Assignment due date will be provided in the course
Canvas.
• Turnitin will check your assignment for originality and will
generate a report indicating areas in which the content
overlaps with other resources.

Late Submission
• Late submission: will be marked as if submitted on time then

the mark awarded will be reduced by 10% for each day (or part
of a day) it is late. Assignments that are late by 10 days or
more will not be marked and will be awarded zero marks.
• Extensions: Up to seven calendar days after the original
submission due date must be lodged with the Course
Coordinator. Greater than seven calendar days must be made
via the Special Consideration Procedure

Plagiarism
• is a form of cheating in assessment and may occur in oral,

written or visual presentations. It is the presentation of the
work, idea or creation of another person, without
appropriate referencing, as though it is your own.
• The penalties for cheating in assessment are severe,
whether the cheating involves plagiarism, fabrication,
falsification of data, copyright infringement or some other
method. Penalties can include charges of academic
misconduct, cancellation of results and exclusion from
your course.
• It is also a disciplinary offence for you to allow your
work to be plagiarised by another student.

Assessment Task Three
Examination
• Due Date: In examination period
• Type: Individual
• Weighting: 40%
• Length: 2 hours
Slide 25
Assessment Task Three
• The questions will give you an opportunity to discuss

issues from across topics and students are expected to be
able to integrate material from throughout the course.
• There will be information available on Course BlackBoard
closer to the examination period to help you prepare and
have a good idea of the type of questions you may
encounter.

Question?......
RMIT University©
Topics One - The nature and
importance of leadership
"People ask the difference between a leader and a

boss.... The leader works in the open, and the boss
in covert. The leader leads and the boss drives"
~Theodore Roosevelt~
Learning Objectives
• Explain the meaning of leadership and how it differs from

management.
• Describe how leadership influences organizational
performance.
• Pinpoint several important leadership roles.
• Identify the major satisfactions and frustrations associated
with the leadership role.
• Present a framework for understanding leadership.

Class Activity: Refer to Student Class
Activities Page 2
 Define: “What is leadership?”
 Suggest: a “keyword” from the
definition
 Nominate a leader: “Who do you
consider to be an effective leader?”
Slide 30
The Meaning of Leadership
• Bass’ “Handbook of Leadership” suggested

“There are almost as many definitions of
leadership as those who have attempted to define
the concept” (Bass, 1990, p.11).
• More than 4,000 definitions were collected under
12 categories in Bass’ Handbook such as a focus
of group, a matter of personality, a power
relationship and an instrument to achieve goals
31
The Meaning of Leadership
• Rost found 221 definitions of leadership in the

total of 587 works.
• Definitions has changed from period to period:
–1900s: Leadership definitions emphasize control and
centralization of power
–1930s: Leadership was defined as traits
–1940s: Group approach
–1950s: Influence approach
32
What is Leadership?
• “an influence relationship among leaders and

followers who intend real changes that reflect their
mutual purposes” (Rost,1993, p. 102).
• “is a special case of interpersonal influence that gets
an individual or group to do what the leader wants
done” (Schermerhorn et al., 1997, p. 315).
• “the ability to influence people toward goal
achievement” (Baird et al., 1990, p. 290).
• “leaders are people who are able to influence the
behaviours of others without having to rely on
threats or other forms of force” (Barney and Griffin,
1992, p. 588).
33
No universal formula/format for effective
leadership (Complexity of Leadership)
Leadership effectiveness is depended on:
–Leaders’ personalities, qualities,
characteristics
–Subordinates’ characteristics
–Situational factors

A Framework for Understanding Leadership
School of 35
Management: RMIT
University
Determinants of Leadership Effectiveness
• Leader’s characteristics
–High energy, intelligence, knowledge, self-confident,
interpersonal skills
• Leadership behaviours
–People orientation, Task orientation
• Followers’ characteristics
–Self-motivated, willingness, ability
• Internal/External factors
–Culture, structure, technology, strategy
36
Leadership – what impact?
There is debate as to the

impact of leadership on
organisational performance.
37
The Argument For -
• Leadership DOES make a difference
–Leaders through their actions and influence bring

about change – stories of leaders in action who
reorient the strategies and structures of organisations.
–Effective Leadership increase:
– Satisfaction
– Effectiveness
– Extra effort
38
Leadership Matters
• The research shows that leadership is responsible for

between 15-45% of a company’s performance;
however,
– transactional leadership was not significantly related to
performance
– charismatic leadership was slightly, positively related to
performance
– in an uncertain environment, charismatic leadership was more
strongly related to performance
39
The Argument Against -
• Formal leadership DOES NOT make a

difference.
–Leadership has a smaller impact

on outcomes than do forces in
the situation.
40
Arguments Against Leadership:
• Teams of highly trained individuals
• Computer technology
• Factors outside the leader’s control have a larger impact
on business than do leadership actions
• An organisation’s fate is determined by forces outside the
leader/manager’s control
• Leaders have unilateral control over only a few resources
• Leaders can only react or innovate in order to adapt to
outside forces.
41
Leadership VS Management
Management is doing things right; leadership is

doing the right things.
~ Peter F. Drucker
42
Management VS Leadership
Management focuses on technical aspects of

Management Functions
Leadership focuses on interpersonal aspects
of Management Functions

Management
• Is more formal and scientific than leadership.

• Uses a set of explicit tools and techniques.
• Is based on reasoning and testing.
• Produces a degree of predictability and order
and maintains the organisation.
• It focuses on the routine.
• Implements the vision.
44
Leadership
• Deals with change, inspiration, motivation and

influence.
• Involves having a vision of what an organisation
can become.
• Requires developing cooperation and teamwork.
• Produces changes, which are often
transformative.
45
Role Differences
Management Leadership
Planning & Budgeting Establishing Direction
Organizing & Staffing Aligning people
Controlling Inspiring
Maintain Stability Create Change
Emotion distance Emotion connection
Expert mind Open mind
Talking Listening
46
Management and Leadership
Leadership Management
• Set direction, create vision • Implement the vision
• Coordinate/work with staff • Organise staff
• Motivate/inspire people • Control subordinates
• Effective if want to change • Appropriate with stable
situations
• Involve emotion
• Keep emotion from
• Deal with interpersonal
subordinates
• Listen to folllowers
• Deal with technical aspects
• Give orders (talking)
RMIT University© 47
Leadership Roles
A role is an expected set of activities or

behaviours related to one’s job
Leadership Roles
Figurehead Spokesperson Negotiator
Coach Team Builder Team Player
Technical
Strategic
Problem Entrepreneur
Planner
Solver
49
Leadership Roles
• Figurehead …..ceremonial activities….

• Spokesperson …keeping key groups informed about the
activities of the organisation or organisational unit….
• Negotiator …making deals with others for needed resources...
• Coach …recognising achievement, giving feedback, and giving
suggestions for performance improvement….
• Team builder …building an effective team….
• Team player …being a good team member oneself….
• Technical problem solver …advising others on solving problems
and being an individual contributor….
• Entrepreneur …suggesting innovative ideas and furthering the
business….
• Strategic planner ….setting a direction for the organisation,
helping the firm deal with the external environment, and policy
setting….
RMIT University© 50
Question…
From your own experiences, what do

you see are the benefits and
frustrations associated with leadership
(becoming a leader)?
Satisfactions of Leaders
• Feeling of power and prestige

• Chance to help others grow
• High income
• Respect and status
• Good opportunities for advancement
• Feeling of “being in on” things
• Opportunity to control resources
52
Dissatisfactions of leaders
• Too much uncompensated overtime

• Too many “headaches”
• Not enough authority to carry out responsibility
• Loneliness
• Too many problems involving people
• Too much organizational politics
• Pursuit of conflicting goals
53
Group Work
Group Discussion
• From your experience and prior knowledge, does leadership
or management in organisations make the most impact on
organisational performance?
Individual Reflection:
• Do I want to be a leader? Why, why not?
• What leadership roles am I prepared for?
• What leadership skill areas will I need to develop and what
activities can I undertake to do this?
54
Topic Two - Leadership Traits,
Behaviours and styles
“A leader is a dealer in hope.”

~ Napoleon Bonaparte
55
School of Management: RMIT University Slide 55

Learning Objectives
• Explain and evaluate Trait approach to Leadership

• Explain and evaluate Behavioural approach to Leadership
• Identify general and task-related traits that contribute to
leadership effectiveness.
• Identify key leadership behaviours
• Identify key leadership styles
• Discuss the selection of the best leadership styles.

Development of Leadership Studies
Leadership Variables/Theories Main Focus Period
Approach
Trait Approach: Values, personalities, Personality traits 1900s – 1940s

Great Man Theory self-confident, ‘Who’
assertiveness, emotional
stability, locus of control,
courage etc.
Behavioural Task Orientation VS How leader behave 1950s
Approach People (Relationship) ‘How’
Orientation
Contingency LPC theory Situational factors 1960s – 1970s

Approach Path-Goal Theory ‘What’
Situational Leadership
Contemporary Charismatic, How leader influence 1980s - present

Approach Transformational, others
Servant, Visionary
Leadership
School of Management:
RMIT University
Slide 57
Trait Approach: Great Man Theory
•Up to late 1940s

•First leadership approach, represented
a beginning of leadership
•Underlying assumption: “some basic
traits differentiated leaders from non-
leaders”
•Leaders were in fact born
BUSM3120 58
School of Management Slide 58

Leadership traits
“People who possess certain traits make more effective leaders”
A distinguishing Physical characteristics such as eye

feature of your colour, which are determined by
personal nature inherited genes
A feature or Trait definitions

quality in a
person’s “make- A specific personal characteristic
up” or attribute which occurs
consistently and influences
behaviour across a range of
situations
From the latin word
“tractus” which An identifying
means drawing out characteristic, habit
or trend
Leadership skills
Definition
“A skill is the ability to do something in an

effective manner”
Idea
“People who possess certain skills make

more effective leaders”
Grouping
At right, Gary Yukl’s three factor taxonomy

of broadly defined leadership skills
Early research on Leadership skills and traits
In 1974 Stogdill reviewed 163 trait studies from 1949 to 1970 (summary in table below) but
argued that there “was still no evidence of universal leadership traits”
Stogdill, R. M., (1974) Handbook of Leadership: A survey of the literature. Journal of Psychology, 25,
259-269.
Personality Traits of Effective Leaders
Leader’s personality traits can be divided into

two groups.
General Task-related
personality traits traits
School of Management: 62
RMIT University
Slide 62
A general personality trait is a trait
that is observable both within and
outside the context of work.
They are related to success and

satisfaction in both work and personal
life.
RMIT University
Slide 63
General Personality Traits of
Effective Leaders
RMIT University
Slide 64
T
Effective Leaders
• Self confidence – realistic self confidence
projected by leaders inspire self confidence in
others.
• Trust and honesty are shown by a leader
‘walking the talk’ that is consistency between
what they ‘espouse’ and what they ‘enact’.
Leaders must also trust others.
RMIT University
Slide 65
Effective Leaders
• Extroversion, that is being outgoing and
gregarious is helpful to leaders. They are likely to
be more interested in participation with their
group members.
• Assertive behaviour enables leaders to express
their demands, feelings, attitudes and opinions
whilst respecting the rights of others. They are
neither aggressive or passive.
RMIT University
Slide 66
Effective Leaders
• Enthusiasm helps to inspire and motivate others and is a
constructive way of rewarding others.
• Warmth enables leaders to develop rapport, be perceived
as charismatic, and to provide emotional support to
others.
• Humour increases a leader’s approachability. Appropriate
humour can help to diffuse tension and conflict and be
used as a power tactic. Humour should avoid issues such
as culture, race, gender, religion etc
RMIT University
Slide 67
Effective Leaders
• Emotional stability is the ability to control emotions so
they are appropriate to the situation. Followers expect and
need consistency.
• A high tolerance for frustration enables a leader to
cope with changes to goals and plans.
RMIT University
Slide 68
Task-related personality traits of
leaders
RMIT University
Slide 69
Task-related Personality Traits of
Effective Leaders
• A passion for work and to some extent the
people who help them accomplish work –
common in entrepreneurial leaders who can
become obsessive about achieving goals.
• Courage to take initiative and risks and willing to

take responsibility.
• Flexibility allows the leader to adapt to change
and to different situations.
RMIT University
Slide 70
Effective Leaders
•Locus of Control - “The extent to which people
believe they are in control of their own
destinies”
–External Locus of Control: describe people who believe
that fate, luck, or outside forces are responsible for what
happens to them
–Internal Locus of Control: describe people who believe
that ability, effort, or their own actions determine what
happens to them
RMIT University
Slide 71
Effective Leaders
• Emotional intelligence involves recognising and
connecting with people and understanding one’s own
and others’ emotions.
• “Ability to connect with people and understand their
emotions”
• “Qualities such as understanding one’s feelings,
empathy for others, and the regulation of emotions to
enhance living.
• It includes our own self awareness, self control and
motivation as well as empathy for others and building
networks and relationships through positive social
skills.
RMIT University
Slide 72
Five dimension - Emotional intelligence
• Self Awareness – Ability to understand your emotion

• Self regulation – Ability to control your own
action/behaviour, clam down, react with appropriate anger
to situations
• Motivation – Passion to work for reasons other than
money
• Empathy – Ability to respond to the unspoken feelings of
others
• Social Skill – ability to manage relationship and build
network of support

The Strengths of the Trait
Approach
• The evidence is convincing that leaders possess
personal characteristics that differ from those of non-
leaders.
• Understanding the traits of effective leaders serves as
an important guide to leadership selection.
BUSM3120 74

The Limitations of the Trait
Approach
•No single trait or group of characteristics would
guarantee leadership successes and outcomes
•Failed to recognise possible differences in
situations. “persons who are leaders in one
situation may not necessarily be leaders in
other situations.” (Stogdill, p. 64).
BUSM3120 75

Class Activity - Assignment Two preparation
• Go to Forbes website:
Top 10 List: The Greatest Living Business Leaders To
day
• http://www.forbes.com/sites/davidkwilliams/2012/07/24/to
p-10-list-the-greatest-living-business-leaders-today/
• Selection one leader from the list.

• Based on your research on your selected leader…
–Identify the leadership traits of your selected
leader?

Behavioural Approach
Behavioural approach
attempted to identify and
measure the leadership
behaviour patterns that
influenced followers’
productivity and morale.
BUSM3120 77

Behavioural Approach
•Study on how a leader behaves
toward their followers
•Focus of leadership study
between 1950s and 1960s

Two basic Leadership Behaviours
Leadership behaviours can be grouped into either
1.Task-Oriented Behaviour (Initiating Structure)
2.Relations-Oriented Behaviour (Consideration)
TASK: This type of behaviour, attitude or skill focuses more

on the task to be performed than on the interpersonal
aspect of leadership
RELATIONS: This type of behaviour, attitude or skill
focuses more on the interpersonal aspect of leadership
than on the actual task.
BUSM3120 79

Task-Oriented Leadership
• Organising and defining tasks within organisation.
• Assigning specific tasks
• Specifying procedures to be followed
• Scheduling work
• Clarifying expectations for team members
• Also referred to as production emphasis, task
orientation, and task motivation
BUSM3120 80

Relations-Oriented Leadership
• Leader creates an environment of emotional
support, warmth, friendliness, and trust
• Involves being friendly and approachable
• Showing Trust and Confidence
• Keeping followers informed
• Recognising performance
• Looking out for the personal welfare of the group
• Doing small favours for the group
BUSM3120 81

Leadership Behaviours
Relations Task
Leader: Leader:
•has concern for employees •has concern for completing tasks
•has concern for interpersonal relationships •defines leader role
•acts in a friendly and supportive manner •defines employee role(s)
•focusses on goal achievement
Examples of this behaviour:
•does a personal favour for employee Examples of this behaviour:

•finds time to listen to problems
•defends workers in his / her section •assigns tasks to employees
•consults with employees •maintains performance standards
•accepts that employees have something to •focuses on deadlines
contribute •criticises poor work performance
•separately coordinates the work activity of
different employee groups
Evaluation Behaviour Approach
•Main idea: “Explain how leaders combined the
task and relations behaviours to influence the
followers’ performance and satisfaction”
•Similar to the trait approach, also suffered for
failing to include situational elements
•Inconsistent findings were often found in the
studies using this approach.
83
Dr. Nuttawuth Muenjohn
Leadership style
The relatively consistent pattern of

behaviour that characterises a leader
Often based on the dimensions of initiating
structure and consideration
RMIT University
Slide 84
Leadership style
The relatively consistent pattern of behaviour that characterises a

leader
Attitude Behaviour
STYLE
BUSM3120 85

Two Basic Leadership Styles
•Participative leadership
•Autocratic leadership

Participative leadership
Participative leaders share decision making
with group members
Accepts suggestions from group members
Has a teamwork approach
Can be time-consuming
Manager’ perception that a participative
approach reduces their power
RMIT University
Slide 87
Autocratic leadership
Autocratic leaders retain most of the authority for

themselves
Autocratic leaders make decisions confidently,
assume that group members will comply
Not overly concerned with group members’
attitudes toward a decision
RMIT University
Slide 88
Selecting the best leadership style
Leaders who get the best results do not rely on

one style of leadership
Several different leadership styles can be drawn
upon by leaders in any one week
Effective leaders exhibit versatility and flexibility in
leadership style and adapt their behaviour to the
changing demands
Cultural settings must also be considered when
selecting appropriate styles
RMIT University
Slide 89
Assignment One -
ASSIGNMENT ONE –
Information and Advice

Topic Three - Contingency and Situational
Leadership
It is a terrible thing to look over your
shoulder when you are trying to lead --
and find no one there.
~ Franklin D. Roosevelt
BUSM3120 91
Learning Objectives
• Discuss the difference between behavioral

and contingency leadership
• Discuss the basic assumptions of
contingency leadership.
• Identify and explain FOUR contingency
leadership model styles and variables.

Development of Leadership Studies
Leadership Variables/Theories Main Focus Period
Approach
Trait Approach: Values, personalities, “Who leaders are” 1900s – 1940s

Great Man Theory self-confident,
assertiveness, emotional
stability, locus of control,
courage etc.
Behavioural Task Orientation VS “How leaders 1950s

Approach People Orientation behave”
Contingency LPC theory Situational factors 1960s – 1970s

Approach Path-Goal Theory
Situational Leadership
Contemporary Charismatic, How leaders 1980s - present

Approach Transformational, influence others”
Servant, Visionary
Leadership

Contingency and Situational
Leadership
• The situation can influence which leadership
behaviour or style a leader emphasises.
• Leaders are most effective when they make their
behaviour contingent upon situational forces
•Assumption: “effective leadership behavior
varied from one situation to another and thus to
determine appropriate leadership behavior, a
leader needed to take situational factors into
account”
94
Fiedler’s Contingency Theory
of Leadership Effectiveness
(LPC leadership Model)

Least Preferred Co-Worker (LPC) model
• Fred E. Fiedler developed a contingency model

that holds that the best style of leadership is
determined by the situation in which the leader is
working.
•Sheds light on two important issues:
–Why, in a particular situation, some leaders will be
effective and other leaders with equally good credentials
will be ineffective.
–Why a particular leader may be effective in one situation
but not in another.
96
Fielder’s findings on leadership
performance and favourability of the
situation
97
LPC Assumptions
• Leadership behaviours are relatively
fixed
• To be effective, a leader must change
situations to match his/her leadership
behaviour

Question: Should a leader
change his/her leadership
behaviours or situational
factors???

The Path-Goal Theory of Leadership
Effectiveness
• What the leader must do to achieve

high productivity and morale in a given
situation.
• In general, a leader attempts to clarify
the path to a goal for a group member
so that he or she receives personal
payoffs.
100
The major proposition of path-goal
theory
• A leader should choose a leadership style that

takes into account the characteristics of the
group members and the demands of the task.
• Path-goal theory emphasises that the leader
should choose among four different leadership
styles to achieve optimum results in a given
situation.
101
The path-goal theory of leadership
102
Four Leadership Styles
• Directive behavior lets subordinates know what tasks
need to be performed and how they should be performed.
• Supportive behavior lets subordinates know that their
leader cares about their well-being and is looking out for
them.
• Participative behavior enables subordinates to be
involved in making decisions that affect them.
• Achievement-oriented behavior pushes subordinates to
do their best. Includes setting difficult goals for followers,
expecting high performance, and expressing confidence.
103
Two Situational Factors
•Subordinates’ personal factors
–Subordinates’ ability
–Experience,
–Perception of ability
•Work’s environmental factors
– Task characteristics, authority system,
and work group
104
Underlying Assumption
•“Both personal and environment characteristics

determine the appropriate leadership behaviour
that lead to the degrees of effective outcomes
performed by subordinates”
105
Leadership styles VS Situations
• Directive: increase subordinates’ performance, morale
and satisfaction when the task is ambiguous and
subordinates are inexperienced
• Supportive: result in a higher subordinate effort, morale
and satisfaction when the task was unpleasant, stressful,
frustrating, confusing and repetitive
• Participative: promote satisfaction of subordinates on
non-repetitive, unstructured tasks, and with skilled
employees (Display of skills and ability)
• Achievement-oriented: work well in complex tasks by
increasing subordinates’ self-confidence in their ability to
meet challenging goals i.e. high competitive, internal locus
of control
106
The Hersey-Blanchard
Situational Leadership Model
The situational leadership model
of Paul Hersey and Kenneth H.
Blanchard explains how to match the
leadership style to the readiness of the
group members.
BUSM3120 107
Basics of the Model
• Leadership style in the situational model is
classified according to the relative amount of task
and relationship behaviour the leader engages in.
• The differentiation is akin to initiating structure
versus consideration.
• The situational leadership model states that there
is no one best way to influence group members.
The most effective leadership style depends on
the readiness level of group members.
BUSM3120 108
Situational leadership model
BUSM3120 109
Four Leadership Styles
• Developed based on the combination of Task and
Relations-Oriented Leadership
• Telling (S1): High Task & Low Relationship (Directive)
• Selling (S2): High Task & High Relationship (Directive
but show concern)
• Participating (S3): High Relationship & Low Task
(Less directive but more collaboration)
• Delegating (S4): Low Task & Low Relationship
(Empowering)

Situational Factors: Readiness levels of
subordinates
• Readiness:
1. Subordinates’ abilities, knowledge,
skills, experience to perform their tasks
2. Subordinates’ willingness, confidence,
commitment , motivation to accomplish
goals/tasks

Situational leadership model continued
BUSM3120 112
Matching Leadership with Situations
• Telling (S1) with Follower R1 (Unable and
Unwilling/insecure)
• Selling (S2) with Follower R2 (Unable but
Willing/confident)
• Participating (S3) with Follower R3 (Able but
Unwilling/insecure)
• Delegating (S4) with Follower R4 (Able and
Willing/confident)

The Hersey-Blanchard Situational Leadership
Assumptions
• More competent followers require less specific
direction than less competent
• Leader must change his/her leadership styles
when followers become more competent and
confident in their task and more willing to do
the task

The Normative Decision Model of Vroom,
Yetton and Jago
• Another contingency viewpoint is that leaders
must choose a style that elicits the correct degree
of group participation when making decisions.
• The normative decision model views leadership
as a decision-making process and specifies what
a leader ought to do in a given situation.
• Normative refers to the idea that
the leader should follow certain prescriptions
indicated in the model.
115
Five Decision-Making Styles
• Autocratic I : Leader makes a decision alone using
information that is readily available
• Autocratic II : Leader obtains information from group
members but makes decision alone
• Consultative I : Leader shares problem with group
members and obtains information from members
individually and makes decision alone
• Consultative II : Leader share problem with group
members collectively but make decision alone
• Group II : Group make final decision

117
Situational Factors:
–Decision quality: Technical knowledge, skills,

information that leaders have before making
decision
–Decision acceptance: refers to how committed
group members are to implementing a decision
effectively.
118
119
Evidence and Opinion About the Model
• Managers who follow the step-by-step

procedures of the model are likely to increase
their decision-making effectiveness.
• Furthermore, managers who make decisions
consistent with the model are more likely to be
perceived as effective managers.
120
Evaluation of Contingency Approach
•Huge impact on leadership study by providing

effective leadership behaviors regarding a variety
of different situations
•Most of the models/theories were criticized on the
complexity of the models and their validity
•Criticized for treating leadership as one-way
process
121
Work in Group
• What variables should a manager consider when

deciding on a leadership style for a given
situation?
122
Power and Influence
“I never referred to myself as a hero. I had a

job to do and a goal to reach” – Carl Brasher
(Portrayed by Cuba Gooding Jr. in “Men of
Honor”, 2000)

Power and Leadership
• To exercise influence, a leader must have power, the

potential or ability to influence decisions and control
resources.
• Power is intertwined with leadership.
• Effective leaders use power appropriately, and know
when and how to be directive and when to delegate.
• At the same time, they know how to be consultants,
providing guidance instead of issuing commands.
A Definition of Power
Power
The ability/capacity of one person
to influence other people to bring
about desired outcomes.
Dependency
B’s relationship to A when
A possesses something
that B requires.

Negative side of Power
Power often have negative connotations
because people associate them with
attempts to use organizational resources
for personal advantage and to achieve
personal goals at the expense of other
goals.

Positive side of Power
•Managers can use power to control people

and other resources so that they cooperate
and help to achieve an organization’s current
goals.
•Managers can use power to influence the
decision-making process to help promote new,
more appropriate organizational goals.

Contrasting Leadership and Power
• Leadership • Power
– Focuses on goal – Used as a means for
achievement. achieving goals.
– Requires goal compatibility – Requires follower
with followers. dependency.
– Focuses influence downward. – Used to gain lateral and
upward influence.
• Research Focus
– Leadership styles and • Research Focus
relationships with followers – Power tactics for gaining
compliance

Sources of Power: Position Power
Position Power
Is established by an individual’s position in an
organization; conveys the ability to coerce or
reward, from formal authority, or from control of
information.
Coercive Power
A power base dependent on fear.
Reward Power
Compliance achieved based on
the ability to distribute rewards
that others view as valuable
Sources of Power: Position Power
Legitimate Power
The power a person receives as a result
of his or her position in the formal
hierarchy of an organization.
Information Power
Power that comes from
access to and control
over information.
Sources of Power: Personal Power
Expert Power
Influence based on special
skills or knowledge.
Referent Power
Influence based on possession
by an individual of desirable
resources or personal traits.

Responses to the use of power
• Position Power
–Appropriate use: “Compliance”
–Excessive use: “Resistance”
• Personal Power
–“Commitment”

Assignment Two -
ASSIGNMENT TWO –
Information and Advice

The Nature of Empowerment
• Increase power by giving power

• Empowerment refers to passing decision-
making authority and responsibility from
managers to group members.
• Almost any form of participative management,
shared decision making and delegation can be
regarded as empowerment.

Becoming an Empowering Leader
• A leader’s power and influence increase when he
or she shares power with others.
• One explanation for this paradox is that as team
members receive more power, they can
accomplish more.
• A truly powerful leader makes team members feel
powerful and able to accomplish tasks on their
own.
• To empower others is to be perceived as an
influential person.

Empowering Practices
• The practices that foster empowerment

supplement standard approaches to participative
management, such as conferring with team
members before reaching a decision.
• Foster initiative and responsibility.
• Link work activities to the goals of the
organisation.
• Provide ample information.
• Allow group members to choose methods.
• Encourage self-leadership.

Influence Tactics –
Leading by Example
• A simple but effective way of influencing

group members is leading by example, or
leading by acting as a positive role model.
• The ideal approach to leading by example
is to be a ‘do as I say and do’ manager –
that is, one whose actions and words are
consistent.

Influence Tactics – Rational Persuasion
• Rational persuasion is an important tactic

for influencing people.
• Rational persuasion involves using logical
arguments and factual evidence to
convince another person that a proposal
or request is workable and likely to result
in goal attainment.
• Rational persuasion is likely to be most
effective with people who are intelligent
and rational.
Influence Tactics – Developing a Reputation as a Subject
Matter Expert
• Becoming a subject matter expert (SME)

on a topic of importance to the
organisation is an effective strategy for
gaining influence.
• Being an SME can be considered a
subset of rational persuasion.

Influence Tactics –
Exchanging Favours and Bargaining
• Offering to exchange favours if another person
will help you achieve a work goal is another
standard influence tactic.
• By making an exchange, you strike a bargain
with the other party.
• The exchange often translates into being
willing to reciprocate at a later date.

Influence Tactics – Getting Network
Members to Support Your Position
• Networking is an important strategy for
career management, including becoming
an influential person.
• Other qualified people supporting your
position lend credibility to it.
• The ability to establish a network and call
on a member of the network when
needed helps you exert influence.

Influence Tactics – Legitimating a Request
• To legitimate is to verify that an influence

attempt is within your scope of authority.
• Making legitimate requests is an effective
influence tactic.
• Another aspect of legitimating
is to show that your request is consistent
with organisational policies, practices and
expectations of professional people.

Influence Tactics – Inspirational Appeal and
Emotional Display
• A leader is supposed to inspire others, so
it follows that making
an inspirational appeal is an important
influence tactic.
• For an emotional appeal to be effective,
the influence agent must understand the
values, motives and goals of the target.

Influence Tactics – Consultation
• Consulting with others before making a

decision is both a leadership style and an
influence technique.
• The influence target becomes more
motivated to follow the agent’s request
because the target is involved in the
decision-making process.

Influence Tactics – Forming Coalitions
• At times it is difficult to influence an

individual or group by acting alone.
• A leader will then have to form coalitions,
or alliances, with others to create the
necessary clout.
• A coalition is a specific arrangement of
parties working together to combine their
power.

Influence Tactics – Game Playing
• Leaders, as well as others, often play

games in order to influence others.
• A game in this context is a repeated
series of exchanges between people that
seems plausible but has a hidden agenda
or purpose.
• Influence is exerted in a game because
the person against whom the game is
played is made to feel humble.
References
• Certo, S. C. (2003) Modern Management (9th eds.), New Jersey, Prentice Hall.
• Daft, R. L. (2005) The Leadership Experience (3rd eds), Canada: South-Western
• Dubrin, A., Dalglish, C. & Miller, P. (2006) Leadership: An Australasian Focus, 2nd edn. Milton: John Willey and Son
• Ian Woodruff, School of Management, RMIT University
• Miller, P. (2006) Unit Information: MNG03217 Leading and Managing People: Graduate College of Management, Southern Cross
University
• Miller, P. (2006) MNG03217 Readings Part A, Graduate College of Management, Southern Cross University
• Anonymous, 10 Quotations on Leadership, http://www.famous-quotes-and-quotations.com/leadership-quotes.html, access 10 Feb 2008,
• Yukl, G. (2006) Leadership in Organizations, NJ, Prentice Hall
• Baird, L. S., Post, J. E., and Mahon, J. F. (1990) Management: Functions and responsibilities, New York, Harper Collins
• Barney, J. B. and Griffin, R. W. (1992) The management of organizations: Strategy, Structure, Behavior, Boston, Houghton Mifflin
• Bass, B. M. (1990) Bass and Stogdill’s Handbook of Leadership, Third edition, New York, Free Press.
• Dubrin, A., Dalglish, C. & Miller, P. (2006) Leadership: An Australasian Focus, 2nd edn. Milton: John Willey and Son
• Lundy, J.L.(1990) Lead, Follow, or Get Out of the Way, Avant Books, Slawson, CA,
• Ian Woodruff, School of Management, RMIT University
• Maurik, J.V. (1994), Discovering the Leader in You, McGraw-Hill international, New York
• Miller, P. (2006) Unit Information: MNG03217 Leading and Managing People: Graduate College of Management, Southern Cross
University
• Robbins, S. P. (2001) Organizational Behavior: Concepts, Controversies, Applications (9th eds.), New Jersey: Prentice Hall
• Rost, J. C. (1993) Leadership for the Twenty-First Century, Connecticut, Praeger Publishers
• Schermerhorn Jr., J. R. and Bond, M. H. (1997) ‘Cross-cultural leadership dynamics in collectivism and high power distance settings’,
Leadership & Organization Development Journal, Vol. 18, No. 4, 187-193.
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Leadership and Decision

1. Course Introduction – structure, content and

RMIT University© School of Management 3

RMIT University© School of Management 6

BUSM3195 Leadership and Management Slide 7

The textbook is a custom publication of

RMIT University© School of Management 8

As the writing on leading for change is extremely wide and

One: Case Study Analysis Friday, 10%

Two: Leadership: Development Friday, 50%

Three: Examination TBA 40%

• Due Date: Week 05

RMIT University© School of Management 12

RMIT University© School of Management 13

• It is expected that you will use at least 3 academic references. Websites,

RMIT University© School of Management 14

• Due Date: Friday, Week 09

RMIT University© School of Management 15

• This assessment is designed and developed based on

RMIT University© School of Management 16

• Identify a person who you consider to be a successful or

RMIT University© School of Management 17

RMIT University© School of Management 18

RMIT University© School of Management 19

RMIT University© School of Management 20

• In Week 05, you are required to submit background

RMIT University© School of Management 21

• You are asked to submit both assignments in soft copy

RMIT University© School of Management 22

• Late submission: will be marked as if submitted on time then

RMIT University© School of Management 23

• is a form of cheating in assessment and may occur in oral,

RMIT University© School of Management 24

• The questions will give you an opportunity to discuss

RMIT University© School of Management 26

"People ask the difference between a leader and a

• Explain the meaning of leadership and how it differs from

RMIT University© School of Management 29

• Bass’ “Handbook of Leadership” suggested

• Rost found 221 definitions of leadership in the

• “an influence relationship among leaders and

RMIT University© School of Management 34

There is debate as to the

• Leadership DOES make a difference

–Leaders through their actions and influence bring

• The research shows that leadership is responsible for

• Formal leadership DOES NOT make a

–Leadership has a smaller impact

Management is doing things right; leadership is

Management focuses on technical aspects of

RMIT University© School of Management 43

• Is more formal and scientific than leadership.

• Deals with change, inspiration, motivation and

Planning & Budgeting Establishing Direction

Organizing & Staffing Aligning people

Maintain Stability Create Change

Emotion distance Emotion connection

Expert mind Open mind

A role is an expected set of activities or

Figurehead Spokesperson Negotiator

Coach Team Builder Team Player

• Figurehead …..ceremonial activities….

From your own experiences, what do