LEADERSHIP

THEORIES
Dothi Tam & Mila
Espinosa
 Outline
Contents
1. Introduction
2. History of leadership
3. Nature of leadership
4. Leadership theories
5. Conclusion
 Introduction
Why is leadership necessary?
 Incomplete organizational structure
 External change
 Internal change
 Motivate and inspire

Three basic leadership roles have been identified:

– origination,
– interpolation, and
– administration.
 History of leadership
 Bass, (1981) leader appeared as early as
the year 1300 in the English language.

 The concept of leadership and the use of

leadership as a word did not surface until the
mid 1800s

 Murphy (1994) leadership, as part of

management theory, that occurred (5,000
B.C.)
 History of leadership

 Next, the Egyptians (4000-2000 B.C.)

developed management concepts like
decentralization, planning, organizing, and
controlling.

 Socrates (400 B.C.) in turn, was the first to

recognize management as a separate and
distinct art.
 History of leadership

 Next, in his Republic, Plato laid the

foundation for leadership theory by
describing the three types of leaders for his
ideal city.

 Leadership has had many definitions

throughout the history and study of
leadership.
What is leadership?
 The process of influencing group activities
towards goal setting and goal achievement.
(Stogdill, 1950)

 The exercise of the authority and the

making of decisions (Dubin, 1951)

 The initiation of acts that results in a consistent

pattern of group interactions directed to the
solution of a mutual problem. (Hemphil, 1954)
 What is leadership?
 A social influence process in which the
leader seeks the voluntary participation of
subordinates in an effort to reach
organizational goals.
(Kreitner, Kinicki,1998)

 Leadership is exercised when persons with

certain motives and purposes mobilize, in
competition or conflict with others,
institutional, political, psychological and
other resources, so as to arouse, engage
and satisfy the motivates of followers.
(James, 1992)
 What is leadership?
 The ability to influence people toward the
attainment of organizational goal.
(Richard L. Daft, 2003)
 A reciprocal, occurring among people.
(Carol Hymowitz, 2001)
 The ability to inspire people to make a total,
willing, and voluntary commitment to
accomplishing or exceeding organizational
goals. (David L. Goetsch and Stanley B.
Davis, 1997). 
 What is leadership?

 A dynamic relationship based on mutual

influence and common purpose between
leaders and collaborators.
( Bard Press, 1996 )

 An interpersonal influence directed toward

the achievement of a goal or goals.
(Gemmy Allen, 1998,)
 What is leadership?
“An attempt to use influence to motivate
individuals to accomplish some goal.”
Gibson (2000)

“Leadership is the ability to persuade others to

seek defined objectives enthusiastically”
Kast & Rosenzweig, (1985)

“ Leadership is "the process of influencing the

activities of an individual or group in efforts
toward goal achievement in a given
situation." (Hersey & Blanchard, 1993:
 What is leadership?
Leadership, the focus of group processes,
 as a matter of personality,
 as a matter of inducing compliance,
 as the exercise of influence,
 as particular behaviors,
 as a form of persuasion,
 as a power relation,
 as an instrument to achieve goals, as an effect of interaction,
 as a differentiated role,
 as an initiation of structure, and
 as many combinations of these definitions. Bass (1997)
 Leadership as personality
(Alexander, Lincoln) (Bogardus, 1928)
 Leadership as an outcome of group process.
(Cooley 1902); (Bass 1981)
 Leadership as influence (Stogdill 1950),
(Bass 1981), Heifetz (1994)
McGregor (1960, 1966)
 Leadership as a pattern of activities and focus of attention and effort.
Kotter (1999), Laurie (2000), (Laurie and
Heifetz (1994), (Schein 1992, 1999)
 Functions of leadership

Primary functions Accessory functions

 Executive  Arbitrator &
 Planning mediator
 Policy making  Exemplar for
 Expertise behaviour
 Symbolic function
 External group rep
 Ideological function
 Control internal rels
 Parent figure
 Punishment &
rewards  Scapegoat function
Leaders and managers:
distinguishing their role’s

Establish
organizational
mission

Leader’s job
Formulate
strategy for
implementing
mission

Implement
organizational Manager’s job
strategy
 Theoretical Approaches to Leadership:
1. The Early Days
2. Trait approach
3. Behavioral approach
4. Power approach
5. Influence approach
6. Contingency/Situational Approaches
7. Transformational/Charismatic Approaches
8. Substitutes for leadership
9. Participative leadership
10. Global leadership
11. Servant approach
 The Early Days
Adam Smith, 1779 – A Wealth of Nation
 Exchange will not occur voluntarily unless
both people benefit.
 “I will not follow you as long as I get some
benefit in return”
Hegel, 1807 – First book on leadership
 Focused primarily on leadership as it related
to the political process.
Thomas Cartyle, 1847 – Greate Man Theory
 Leaders are born
 Only those men who are blessed with heroic
qualities could ever emerge as a leader.
 Trait approach
 The trait approach to leadership, based on
early leadership research, assumed that a
good leader is born and not made.

 Focuses on the personal attributes of

leaders

 No trait or combination of traits guarantees

that a leader will be successful.

 They drew from scientific management its

focus on the leader and the task.
 Leadership Traits
 Intelligence
 energy
 self-confidence
 dominance
 motivation to lead
 emotional stability
 honesty and integrity
 need for achievement
 Trait theory of leadership
 Personality - energy levels, stress tolerance,
self-confidence, emotional maturity, integrity

 Motivation - strong need for achievement,

weak need for affiliation, socialised power
orientation.

 Ability - Interpersonal skill, cognitive skill,

technical skill, persuasiveness
 Trait approach
     Underlying motives and leadership
  a. Need for power
b. Need for achievement
c. Need for affiliation

       Leadership motive pattern:

- low need for affiliation
- high need for power
- moderate need for achievement
Trait approach - Some theories
Stogdill (1948) - Leaders higher in:
       intelligence
       alertness to the needs of others
       understanding of the tasks
       initiative and persistence in dealing
with problems
      self-confidence
     desire to accept responsibility

Others authors: Jenkins, (1947), Mann (1959)

Conclusions from Trait Approach

 Results inconsistent.
 No universal “necessary” traits
 Depends on situation
 Not been able to identify a set of traits that
will consistently distinguish leaders from
followers
 The great man theory of leadership and
trait theory of leadership led to the
development of scientific management.
 Behavioral approach
 Emphasizes actual leader behaviors
+ Identified determinants of leadership so that
people could be trained to be leaders.
+ The best styles of leadership could be
learned.

 Focus on behaviors in isolation may be

too simplistic.

 Emphasizes importance of situation.

 States pattern approach to study of

behavior
 Some Behavioral Theories
Theory X
 Focus on importance of direction and control of
managers.
 Managers believe that employees are lazy,
uncooperative, and have poor work habits.

Theory Y
 Focus integration of individual and
organization.
 Managers believes that subordinates work hard,
are cooperative, and have positive attitudes.
 Some Behavioral Theories

Ohio State studies

      Two leadership styles: considerate and
initiating structure.

University of Iowa studies

Democratic (participation and delegation),
Autocratic (dictating and centralized)
And laissez-faire styles (group freedom in
decision making).
 Some Behavioral Theories
The Managerial Grid of Blake and Mouton

 Five various leadership styles that represent

different combinations of concern for people
and concern for production.

 Managers who scored high on both these

dimensions simultaneously (labeled team
management) performed best.
 Leadership Grid
High 9 1.9 9.9
Team
Country Club Management
8 Management
Concern for People

5 5.5
Middle-of-the-Road
4 Management
3

2
Impoverished Authority-Compliance
1
Management Efficiency
Low 1.1 9.1
1 2 3 4 5 6 7 8 9
Low Concern for Production High
 Taxonomy of behavior (Yukl, 2002)
 
     Focus on monitoring, informing,
clarifying, managing conflict, networking,
supporting, recognizing and rewarding,
motivating, consulting and delegating,
planning and organizing, problem solving
 Power approach
Power approach (French & Raven, 1960)
 
1. Reward power
    Capacity to formally offer positive incentives
for desirable behavior
 
2. Coercive power
     Capacity to punish an employee for
engaging in undesirable behaviors
 Power approach

3. Legitimate power
  Follower believes that leaders power over
him is legitimate or acceptable
 
4. Expert power
  Employee listens to leader because the
leader is perceived to be an expert in a given
relevant area
 5. Referent power
     Followers listen to leader simply because
they want to identify with the leader
      Employee commitment, compliance, and
resistance studied as outcomes of the
different types of power
   Legitimate power  compliance
   Referent power  commitment
   Expert power  commitment
   Reward power  compliance
   Coercive power  resistance
      Effectiveness of different power types
may depend on the organization
 Influence approach
 Focuses on types of influence tactics that
leaders engage in when trying to get
followers to complete tasks.

Common influence tactics:

1. rational persuasion
2. inspirational appeals
3. consultation
4. ingratiation
5. personal appeals
6. exchange
7. pressure
 Influence approach
      Yukl & Tracey (1992)
  Pressure is more acceptable in downward
influence attempts

    Minor influence tactics likely to be used

first, followed by more severe tactics

   Most effective tactics appear to be rational

persuasion, consultation, inspirational
appeals

   Least effective tactic is pressure

Contingency/situation Approaches
     Emphasize the importance of the situation
in determining which leaders will be effective

Situational Models of Leader Behavior

assume that:

• Appropriate leader behavior varies from

one situation to another.

• Key situational factors that are

interacting to determine appropriate
leader behavior can be identified.
Situation leadership model
 Tannenbaum and Schmidt’s
Leadership Continuum

Boss-centered leadership

Use of Authority
by Manager
Area of Freedom
for Subordinates

Subordinate-centered leadership

Manager makes Manager presents Manager presents Manager permits

decision and ideas and invites problem, gets subordinates to
announces it questions suggestions, function within
makes decision limits defined by
superior
Manager Manager presents Manager defines
“sells” tentative decision limits, asks group
decision
subject to change to make decision
 Fiedler’s Contingency Theory

     Effectiveness a joint function of situational favor-

ability and leader style.
 
   Situational favor-ability:

a. leader member relations

b. task structure

c. position power
 
 Theory of Leadership (Fiedler)

Contingency Factors Situations

Leader-member relations Good Bad

Task structure High Low High Low

Position power Strong Weak Strong Weak Strong Weak Strong Weak

Favorableness
Most favorable Moderately favorable Most unfavorable
of Situation

Appropriate
Task-oriented Relationship-oriented Task-oriented
Leader Behavior
 Limitations of Fiedler’s Theory
Criticisms of contingency theory include:

 determinism

 reification and

 its assumption that managers react

rationally in response to organisational
threats or changes. It ignores the fact that
managers may act politically or pursue
agendas which circumvent rational
responses to the environment.
 The Path-Goal Theory of Robert House
 Situational Factors:

Work Leadership Impact on Expected

Situation Style Followers Results
Follower Supportive Increases self- Increased effort. job
lacks self- confidence to satisfaction, and
confidence complete task performance; fewer
grievances

Lack of job Achievement- Encourages Improved performance

challenge oriented setting high but and greater job
attainable goals satisfaction

Improper Participative Clarifies follower Improved performance

procedures need for making and greater satisfaction;
and poor suggestions and less turnover
involvement
decisions
Ambiguous Directive Clarifies path to Improved performance
job get rewards and job satisfaction
 The Path-Goal Framework

Subordinates’ Leader behaviors Environmental

personal • Directive characteristics
characteristics • Supportive • Task structure
• Perceived ability • Participative • Work group
• Locus of control • Achievement-
oriented

Subordinates
’ motivation to perform
 Path goal theory - Robert House
      Effective leaders influence followers to believe
that valued outcomes can be attained through high
levels of effort.
      How expectancy perceptions are influenced by
the contingent relationships among four leadership
styles and various employee attitudes and
behaviors.

  Important leader behaviors include:

 a. Removing obstacles from paths to desired goals. 
b. Rewarding subordinates for goal attainment
 c. Helping them see the relationship between effort
and valued outcomes
 Path-Goal Theory of Leadership

Subordinate
  
Leader Behaviour Situational Factors Outcomes
Job Satisfaction
Subordinate
Directive
Characteristics
Supportive Acceptance
Achievement-oriented of Leader
Environmental
Participative
Factors
Effort

“Effective leadership should take advantage of the

motivating and satisfying aspects of jobs while offsetting
or compensating for those job aspects that demotivate
or dissatisfy.”
 Situational Leadership Model of Paul Hersey

Task Behavior Decision Styles

The extent to which the Leader Behavior 1
leader engages in defining Leader-made

(High)
S3 S2 decision
roles––i,e., telling what, how,
when, where, and, if more than Share ideas Explain
one person, who is to and facilitate decisions 2
Se
in decision lli and provide Leader-made

g
do what in:

tin
making ng opportunity decision

Relationship Behavior
(Supportive Behavior)

a
•Goal–setting with dialogue

cip
•Organizing for and/or

rti
•Establishing time lines clarification explanation

Pa
•Directing High rel. High task
•Controlling Low task High rel. 3
Leader/follower-
Low rel. High task made
Relationship Behavior– Low rel.
Low task decision or
The extent to which a
g S4 S1 follower-made
leader engages in in

Te
two-way (multi-way) a t Turn over Provide decision with
g

lli
l e encouragement

ng
De responsibility specific
communication, listening, from leader
facilitating behaviors, for decisions instructions
socioemotional support:
and implementation and closely supervise 4
(Low)

•Giving support performance Follower-made

•Communicating decision
•Facilitating interactions
•Active listening Task Behavior
•Providing feedback (Low) (Guidance) (High)

Source: Paul Hersey, Situational Selling (Escondido, Calif.: Center for Leadership Studies, 1985), p. 32.
 Vroom Decision Tree Approach
 Attempts to prescribe a leadership style
appropriate to a given situation.
 characteristics of the situation.

 No one decision-making process is best for

all situations.

 After evaluating the different problem

attributes, a leader can choose a decision
path on one of two decision trees that
determines the decision style and specifies
the amount of employee participation.
 Vroom’s Time-

Importance of

Likelihood of
Commitment
Commitment
Significance

Competence
Driven Decision

Expertise

Expertise
Decision

Support
Leader

Group

Group

Team
H Decide
Tree
H Delegate
H H H
L L
L Consult (group)
L
H H Facilitate
P H H
L
R H Consult
O L
(individually)
B L
L H L
E H Facilitate
M H
L H L
L Consult (group)
S
T L
A
T H Decide
E H Facilitate
M H
L H L
E L Consult
N L (individually)
T L
Source: Victor Vroom’s
H Decide
Time-Driven Model from A
L H Delegate Model of Leadership Style,
L copyright Vroom, 1998.
L Facilitate
L Decide
 Vroom’s
Development-
Importance of

Likelihood of
Commitment

Competence
Commitment
Significance

Expertise
Expertise
Decision

Support
Driven Decision

Leader

Group

Group

Team
H
H Decide Tree
H L Facilitate
P H
L —
--
R Consult (group)
—
-- —
--
O H —
-- L
B H Delegate
L H
H L
E H L Facilitate
M --
—
L
--
— —
-- Consult (group)
S L
T H Delegate
H
A H
L —
-- --
— L Facilitate
T
E L —
--
Consult (group)
M —
-- —
--
L
E
N H —
-- —
-- —
-- Decide
H —
--
T L —
-- —
-- —
--
L Delegate
L —
-- --
— —
-- —
-- —
-- Decide

Source: Victor Vroom’s Development-Driven Model from

A Model of Leadership Style, copyright Vroom, 1998.
Leader-Member Exchange (LMX) Theory

 Stresses the importance of variable

relationships between supervisors and
their subordinates.

 Leaders form unique independent

relationships (“vertical dyads”) with each
subordinate in which the subordinate
becomes a member of the leader’s out-
group or in-group.
 (LMX) Theory

Leaders differentiate among followers

based on:

1. Their competence and skill

2. The extent to which they can be trusted.

3. Their motivation to assume greater

responsibility within the group.
 (LMX) Theory
     “In group”
        Go beyond their formal job duties
        Leader gives them more support and
attention
 
     “Out group”
        Given more routine, boring tasks
        More formal relationship with the leader
        Resentment?
 (LMX) Theory

     LMX related to satisfaction,

commitment, turnover, performance,
helping behavior
 
     Low LMX quality associated with:
a. high workload of employees
b. large of subordinates for each leader
c. low perceived similarity among leaders
and subordinates
 (LMX) Theory

Leader

Subordinate Subordinate Subordinate Subordinate Subordinate

1 2 3 4 5
Out-Group In-Group
 Transformational leadership
    Goes beyond ordinary expectations, by
transmitting a sense of mission, stimulating
learning, and inspiring new ways of thinking.
    Process of influencing or leading to major
changes in the attitudes and assumptions of
organizational members.
      Leaders transform their followers by:
 making them more aware of the importance of
task outcomes
 activating their higher order needs
 inducing them to transcend self-interest
for the sake of the organization
Characteristics of transformational
leadership Fourl’s:

1. idealized influence

2. inspirational motivation

3. Intellectual stimulation

4. Individualized consideration
Seven keys to successful
leadership

• Trusting in one’s subordinates

• Developing a vision
• Keeping cool
• Encouraging risk
• Being an expert
• Inviting dissent
• Simplifying things
 Charismatic Leadership
– Charismatic leaders in organizations must be
able to:
• envision the future, set high expectations,
and model behaviors consistent with
expectations.

• energize others through a demonstration

of excitement, personal confidence, and
patterns of success.

• enable others by supporting them,

by empathizing with them, and
by expressing confidence in them.
 Charismatic leadership
      Perception on the part of followers that
leader possesses a divinely inspired gift and
is somehow unique and larger than life
 
     Followers idolize leader and follow their
wishes without question
 
     Common behaviors:
a. impression management
b. articulation of an appealing vision
c. communication of high expectations
d. expression of confidence in followers ability
 Substitutes for leadership

A concept that identifies situations in

which leader behavior is neutralized or
replaced by characteristics of
subordinates, the task, and the
organization.

Howell & Dorfman (1981)

 
     Looked at tightly knit work groups and
tasks that provide feedback about
performance as substitutes
Substitutes for leadership Kerr & Jermier (1978)

  Employees seek guidance and positive feelings

from their workplace

 Guidance comes from role structuring, while

positive feelings generally come from
recognition

 These factors can come from sources other

than a formal leader

 Also identified factors that could “neutralize”

the effects of a good leader
 Substitutes for Leadership

Characteristics that Substitute for Leadership

Subordinate Task Organization

Ability Routineness Formalization

Experience The availability of feedback Group cohesion
Need for independence Intrinsic satisfaction Inflexibility
Professional orientation A rigid reward structure
Indifference towards
organizational goals
 Participative Leadership

1. Involves organizational members in making

decisions and guiding the organization .

2. Has interpersonal processes for adaptation and

change

3. Participatory leadership was a shift in focus from

the factory (scientific management) and the
leadership traits (trait and charismatic leadership)
to the leadership style of the leader or manager
and their interaction (task) and concern for the
follower
 Advantages of Participative
Leadership
 Motivation
– intrinsic
– enriching jobs
 Quality
– “two heads are better than one”
– empowerment to tale direct action
 Acceptance
Problems of Participative Leadership

 Time and energy

 Loss of power
 Lack of receptivity
 Lack of knowledge
 Global Leadership

 Unbridled inquisitiveness
 Personal character
– emotional connection and integrity
 Duality
– balance global and local
 Savvy
– recognize opportunities
– well inform
 Servant-Leadership

 Servant-Leadership is a practical philosophy

which supports people who choose to serve
first, and then lead as a way of expanding
service to individuals and institutions.

 Servant-leaders may or may not hold formal

leadership positions.

 Servant-leadership encourages collaboration,

trust, foresight, listening, and the ethical use of
power and empowerment.
 Gender and leadershi
Perception Behavior
Task-orientation
Men > Woman Men = Woman
Relationship-orientation
Men < Woman Men = Woman
Autocrativeness
Men > Woman Men > Woman
Paticipativeness
Men < Woman Men < Woman
Emergence
Men > Woman Men > Woman
Effectiveness (only in Lab.)
Men > Woman Men = Woman