K.

James
LEADERSHIP Unit 2 – MOB
Kingston College
OBJECTIVES
Define the term ‘leadership’
Outline the sources of power
Discuss the different leadership theories
Evaluate the different leadership skills
Explain each leadership style
Compare and contrast the different leadership styles
Outline the factors influencing the choice of leadership style
Outline the influences of informal leadership on
organisations
LEADERSHIP
The term leadership is commonly defined as the process of influencing people
towards a specific or common goal.
Now let us look more closely at our definition:
Leadership is interpersonal – it involves people or a group of people
People are influenced – this is the use of power to affect others.
Specific or common goal – this is the desired end result that one hopes to achieve.
SOURCES OF POWER
‘Power’ is defined as having the potential or capability to influence the actions of
others.
Leaders get their power from a number of sources including:
Reward power – this is associated with the distribution
of rewards to employees. These rewards can be monetary or non-monetary and can
be used to alter or influence employees’ behaviour
Coercive power – this is where the leader exercises control over employees and the
activities that take place in the organisation. As the leader is in control, he/she has
the ability to mete out whatever punishment or sanction is necessary to correct the
mishap
SOURCES OF POWER
Legitimate power – power here comes from the belief that the leader has the right,
by virtue of his/her position, to give orders and instructions. For example, in the
classroom, the students are expected to adhere to the teacher’s instruction by virtue
of his/her position
Expert power – this stems from the ability and knowledge of the leader. Employees
believe that the individual has significant knowledge and skills in the area involved
and so power is accorded to him
Referent power – this source of power is largely based on the qualities of the leader.
These characteristics help the leader to earn the respect of the subordinates who also
emulate his/her behaviour.
LEADERSHIP THEORIES
McGregor’s Theory X and Theory Y, and the Trait Theory

Managers who still hold the traditional view of management were referred to as
Theory X while those who held a more humanistic view were referred to as Theory
Y managers.
Managers who hold Theory X assumptions about their employees are likely to have
autocratic traits.
Managers who hold Theory Y assumptions about their employees are likely to be
democratic.
LEADERSHIP THEORIES
MANGERS ASSUMPTIONS
THEORY X
There is an inherit dislike for work in the
average human and they will seek to avoid work
if possible
As a result of the first assumption, workers must
be coerced, controlled, directed or threatened in
order to get them to work
People possess little ambition and will avoid
responsibility and so they prefer to be directed
Being self-centred, the average person will not
be concerned about the goals of the
organisation.
THEORY Y
People do not inherently dislike work but instead
work is as natural as play or rest
Employees will exercise self-direction and self-
control as they seek to fulfil the firm’s objectives
People will seek responsibility under the proper
working conditions
People possess the skills, imagination, ingenuity
and creativity needed to solve the organisation’s
problems
The intellectual potential of humans is only
partially being utilised.
THE TRAIT THEORY
The trait approach to leadership seeks to identify the characteristics of leaders and
how these characteristics affect their effectiveness. Its main assumption is that
effective leaders are born and not made.
A ‘trait’ is defined as a distinguishing feature in character, appearance or habit from
which an individual’s personality is formed and can be identified. These traits are
often used to distinguish leaders from non-leaders.
TRAITS OF A GOOD LEADER
A drive to achieve – there should be a high level of effort, ambition, energy and initiative
Motivated leader – possessing an intense desire to influence others to reach common goals
Honesty and integrity – the leader should be trustworthy and reliable
High level of self-confidence
Strong cognitive ability – should be able to exercise good judgement and possess strong
analytical abilities and conceptual skills
Knowledgeable – must be conversant with the industry and the technicality of the type of
business
Possess good social skills and flexibility
Display emotional maturity.
TRAITS THEORIST
Ralph Stogdill
Richard D Mann
Hans Eysenck
 ADVANTAGES AND
DISADVANTAGES OF THE
TRAIT THEORY
It Advantages of theto Trait
is used as a yardstick assess Theory
an Disadvantages
It of the Trait Theory
lends itself to subjectivity
individual’s leadership traits
The traits of successful leaders tend to run to a very long
It outlines, in a detailed way, the leader list
(individual) element in the process of
leadership Equating physical traits, such as height and weight, may
not be the best tool for measuring effective leadership
The basis of the theory has been validated by a
number of other pieces of research. Based on the theorists’ work, it is evident that there are
disagreements in terms of which traits are most
important for effective leadership
The traits that are needed for one organisation may be
very different from those needed for another
In a number of cases, the trait needed depends on the
situation in which the leader is leading. Therefore there
is no uniformity.
LEADERSHIP SKILLS
Communication
It is often said that great leaders are great communicators. For any leader to be effective
it is imperative that he/she is able to communicate effectively. The leader must be able to
give unambiguous instructions and be able to communicate the objectives and goals of
the firm to their subordinates.
Critical thinking
An effective leader is one who practises higher-order thinking by making responsible
judgements and decisions. A critical thinker is an individual who asks the appropriate
questions in order to ascertain relevant information and then uses the information to
draw logical conclusions. The leader needs to think critically in order to deal with the
day-to-day running of the firm and to make strategic decisions on how to move forward.
LEADERSHIP SKILLS
Problem solving
To be an effective problem solver, it is inevitable that the leader will be faced with different
problems or decisions within the organisation. Therefore, having the skill of problem
solving is vital to the effective running of the firm.
Planning
Planning, is the setting of business objectives and establishing the necessary plan to
achieve such objectives. An effective leader needs to be a very good planner. Having stated
goals is not enough unless there is a clearly outlined step-by-step plan to achieve these
goals. The leader needs to identify opportunities and develop the courses of action to take
while making the best use of the limited available resources. A good planner will be aware
of the foreseeable future and develop strategies to deal with the possible problems that
he/she may encounter.
LEADERSHIP SKILLS
Consideration
A leader who needs to gain the trust and support of subordinates must learn how to be
considerate. The effective leader is one who will be considerate of a decision
affecting his/her subordinates. When a leader gives consideration in response to good
performance it increases the likelihood of the level of performance being repeated.
LEADERSHIP STYLES
Autocratic or directive
This is probably the oldest leadership style and was featured in the work of Frederick
Taylor in his Scientific Management theory.
An autocratic leader makes all the major decisions in the firm, gives orders and
closely monitors the activities of the employees. Employees are not involved in
decision making and do not act independently of the leader. Communication usually
flows from the top down in this form of leadership, as workers’ suggestions are not
given much regard.
It is suitable for the army and for large companies.
LEADERSHIP STYLES
Democratic or participative
This leadership style is one where the leader allows employees to share their ideas
and suggestions and participate in the decision-making process.
This leader delegates authority to subordinates but retains ultimate responsibility.
The democratic leader facilitates two-way communication and the employees’ input is
highly regarded.
The leader may seek employees’ views prior to a decision being made or may share
the decision and then try to convince workers that it was the correct one.
LEADERSHIP STYLES
Paternalistic
The paternalistic leader is a ‘father figure’ who gives attention to the social needs
and opinions of the employees.
This style of leadership is similar to the autocratic one, in that workers do not
participate in the decision-making process. Instead, the leader makes all the decisions,
which, in their view, is in the best interests of the workers.
While there might be consultation with the workers and noting of their opinions or
feedback, the final decision rests with the leader.
LEADERSHIP STYLES
Constitutional or bureaucratic Bureaucratic leadership
This leadership style is very stringent as the leader leads in accordance with the stated rules of the
firm.
Therefore, there is little, if any, room for workers to use their intuitive ability and to be flexible.
The activities of the firm are undertaken based on the prescribed policies and procedures.
This style of leadership is particularly important when the employees must follow certain
procedures to maintain a certain level of quality.
The leader gains his/her authority based on the office or position as stated by rules governing that
position – that is, legitimate power. Employees are expected to act professionally in the workplace
and among each other.
This leadership style is entrenched in the work of Max Weber and his Bureaucratic Management
theory.
LEADERSHIP STYLES
Laissez-faire
This is the most liberal of all the leadership styles. The leader is seen as the
representative of the group of people beingled and acts on their behalf.
The leader is mostly responsible for setting the business objectives, which should be
unambiguous.
The subordinates are given autonomy to carry out their own activities and make
decisions as far as possible in order to achieve the objectives. The success of this style of
leadership often depends on the level of competence, skill and reliability of the
employees.
Since workers are given the chance to carry out their own work, this type of leadership
often leads to a high level of motivation.
LEADERSHIP STYLES
Transformational
A leader using the transformational leadership style seeks to inspire his/her
subordinates to achieve a shared goal or objective. The transformational leader is well
involved in the day-to-day activities of the firm and communicates well with
subordinates.
This style of leadership involves the delegation of responsibility to subordinates
rather than ‘leading from the front’.
EVALUATION OF THE DIFFERENT
LEADERSHIP STYLES
EVALUATION OF THE
DIFFERENT LEADERSHIP
STYLES
FACTORS INFLUENCING THE CHOICE
OF
LEADERSHIP STYLE
Time pressures – the length of time available for the completion of a project will
determine the style of leadership that is employed by the leader. Where there is
challenge in terms of the time available, the leader tends to make all the decisions.
Organisational culture - An organisation with a warm culture tends to have a more
participative leadership style where employees and management trust each other and
consultation is the norm
Staff size (span of control) – leaders in very large firms may find it difficult to
consult employees on every decision. In order to maintain underlying standards,
management may have to make decisions itself.
FACTORS INFLUENCING THE CHOICE
OF
LEADERSHIP STYLE
Attitude of subordinates – some employees prefer to be led rather than sharing in
decision making. This could be as a result of low self-esteem, past experiences or
their personality types.
Skill level of the labour force – the leader should be aware of the ability and skill
level of the labour force. A highly skilled labour force can be trusted to share ideas
and make suggestions which, if implemented, may lead to success.
Personality of the leader – this is perhaps one of the most difficult factors to
correct. It is based on the innate or learned traits of the leader. Some leaders have
autocratic tendencies and hence will not utilise any other leadership style
FACTORS INFLUENCING THE CHOICE
OF
LEADERSHIP STYLE
The nature of the task – in practice, not all decisions that are made can go through
consultation. The leader may have to make a drastic decision based on its urgency.
There are also times when a leader has to make a unilateral decision because of its
nature and the impact it is expected to have on the organisation.
LEADERSHIP ROLES
Guidance
A leader is often seen as a guide and subordinates look to the leader to provide guidance on
how to complete a task.
Direction
A leader should be able to provide his/her subordinates with a sense of direction. There must
be a clear view of where the organisation is going and how it plans to get there. The leader
has the role of being a visionary and must communicate this vision with subordinates.
Counselling
It is almost inevitable for employees of an organisation to have conflicts and concerns that
they need to offload.
LEADERSHIP ROLES
Coaching
‘Coaching’ is defined as the process of training and providing employees with the
necessary knowledge and tools to carry out their job responsibilities effectively. In the
organisation, the leader has to play the role of coach as he/she is expected to train and
equip employees for the task at hand.
Inspiration of others
The leader should be able to inspire subordinates to work assiduously to complete the
given task.
INFORMAL LEADERSHIP
An informal leader is a person who does not have formal authority in the firm but
who has been able to inspire and motivate his/her peers to achieve a desire or set of
goals. These leaders are often charismatic and influential and often get others to
follow them.
EVALUATION OF INFORMAL
LEADERSHIP
ADVANTAGES OF INFORMAL DISADVANTAGES OF INFORMAL
LEADERSHIP LEADERSHIP
Can motivate the workforce, which could The informal leader could use his/her
eventually improve productivity influence to resist changes in the firm
Tends to improve the employees’ social Could result in employees being ill
relationships, thus building self-esteem informed about matters within the
Suggestions from informal leaders could be organisation.
implemented by management since they are
the ones ‘on the ground’
Informal leaders often know how to get the
work out and so can be used to
communicate directly with employees.