Leadership

Learning Outcomes
• Define leader and leadership
• Compare and contrast early leadership
theories
• Describe the four major contingency
leadership theories
• Describe modern views of leadership and the
issues facing today’s leaders
• Discuss trust as the essence of leadership

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Who Are Leaders, and What Is
Leadership?
• Leader
– Someone who can influence others and who
has managerial authority
• Leadership
– The process of leading a group and influencing
that group to achieve its goals.
– Leadership is the art or process of influencing
people so that they will strive willingly and
enthusiastically toward the achievement of
group goals.

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Fundamentals of leadership
Since people tend to follow those who, in
their view, offer them a means of satisfying
their own personal goals, the more managers
understand what motivates their
subordinates and how these motivations
operate, and the more they reflect this
understanding in carrying out their
managerial actions, the more effective they
are likely to be as leaders.

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What Traits Do Leaders Have?
• Trait Theories of Leadership
– Theories that isolate characteristics (traits) that
differentiate leaders from nonleaders
The seven traits shown to be associated with
effective leadership are described briefly in
Exhibit 11-1

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What Behaviors Do Leaders
Exhibit?
• Behavioral Theories
of Leadership
– Theories that isolate
behaviors that
differentiate effective
leaders from
ineffective leaders

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Leadership Behaviors
• Autocratic Style
– A leader who centralizes authority, dictates work
methods, makes unilateral decisions, and limits
employee participation
• Democratic Style
– A leader who involves employees in decision
making, delegates authority, encourages
participation in deciding work methods, and uses
feedback to coach employees

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Leadership Behaviors (cont.)
• Laissez-Faire Style
– A leader who generally gives employees complete
freedom to make decisions and to complete their
work however they see fit

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Transactional vs transformational
• Transactional leaders identify what
subordinates need to do to achieve objectives,
clarify organizational roles and tasks, set up
an organization structure, reward
performance, and are considerate for the
social needs of its followers

• Transformational leaders articulate a vision

and inspire followers. They have the capacity
to motivate, shape the organizational culture,
and create a climate favorable for
organizational change

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Ohio State Study
Identified two categories that accounted for most of the
leadership behavior
• Initiating Structure
– The extent to which a leader defines and structures
his or her role and the roles of employees to attain
goals
• Consideration
– The extent to which a leader has job relationships
characterized by mutual trust, respect for
employees’ ideas, and regard for their feelings
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How Did the University of Michigan
Studies Differ?
Also developed two dimensions of leadership behavior
• Employee Oriented
– A leader who emphasizes the people aspects.
• Production Oriented
– A leader who emphasizes the technical or task
aspects

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What is the Managerial Grid?
• Managerial Grid
– A two-dimensional grid for appraising leadership
styles based on
• Identified five styles for management
– impoverished management
– task management
– middle-of-the-road management
– country club
– team management
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What Was the First Contingency
Model?
• Fiedler Contingency Model
– Leadership theory that proposes that effective
group performance depends on the proper match
between a leader’s style and the degree to which
the situation allowed the leader to control and
influence
• Least-Preferred Co-Worker (LPC) Questionnaire
– A questionnaire that measures whether a leader
was task or relationship oriented

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Three Contingency Dimensions
• Leader-member relations
– the degree of confidence, trust, and respect
employees had for their leader
• Task structure
– the degree to which job assignments were formalized
and structured
• Position power
– the degree of influence a leader had over activities
such as hiring, firing, discipline, promotions, and
salary increases
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How Do Followers’ Willingness and
Ability Influence Leaders?
• Situational Leadership Theory (SLT)
– A leadership contingency theory that focuses
on followers’ readiness
• Readiness
– The extent to which people have the ability
and willingness to accomplish a specific task

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Four Situational Styles
• Telling (high task–low relationship)
– The leader defines roles and tells people
what, how, when, and where to do various
tasks

• Selling (high task–high relationship)

– The leader provides both directive and
supportive behavior

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Four Styles (cont.)
• Participating (low task–high relationship)
– The leader and followers share in decision making;
the main role of the leader is facilitating and
communicating

• Delegating (low task–low relationship)

– The leader provides little direction or support

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How Participative Should a Leader
Be?
• Leader-Participation Model
– A leadership contingency theory that’s based on a
sequential set of rules for determining how much
participation a leader uses in decision making
according to different types of situations

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How Do Leaders Help Followers?
• Path-Goal Theory
– A leadership theory that says the leader’s job is to
assist followers in attaining their goals and to
provide direction or support needed to ensure
that their goals are compatible with the
organization’s or group’s goals

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What Do Contemporary Views
of Leadership Tell Us?
• Transactional Leaders
– Leaders who lead primarily by using social
exchanges (or transactions)
• Transformational Leaders
– Leaders who stimulate and inspire (transform)
followers to achieve extraordinary outcomes

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How Do Charismatic and Visionary
Leaders Differ?
• Charismatic Leaders
– Enthusiastic, self-confident leaders
whose personalities and actions
influence people to behave in
certain ways
• Visionary Leadership
– The ability to create and articulate
a realistic, credible, and attractive
vision of the future that improves
on the present situation

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What is Control?

• Control
– The management
function that
involves monitoring
activities to ensure
that they’re being
accomplished as
planned and
correcting any
significant deviations
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 Cont’d..

• Control of an undertaking consists of seeing

that everything is being carried out in
accordance with the plan which has been
adopted, the orders which have been given,
and the principles which have been laid
down. Its object is to point out mistakes in
order that they may be rectified and
prevented from recurring. ---- Henri Fayol

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Cont’d..
• Control is checking current performance
against pre- determined standards
contained in the plans, with a view to
ensure adequate progress and satisfactory
performance. ---- EFL Breach

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What is the Control Process?
• Control Process
A three-step process of
–measuring actual performance,
–comparing actual performance against a
standard,
–taking managerial action to correct
deviations or to address inadequate
standards

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How Do Managers Measure?
To determine actual performance, a manager
must first get information about it. Thus, the
first step in control is measuring
Four common sources of information frequently
used to measure actual performance are
– personal observation
– statistical reports
– oral reports
– written reports
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 Control system
• Control system is a set of mechanism that
is designed to ensure the accomplishment
of organizational goals.
• Tactical Control System: Refers to the
control system used by middle-level of an
organization.
• Operational Control System: Refers to the
lower-level control system of an
organizational hierarchy.
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Critical control points
 Standards are criteria of performance

 They are yardsticks against which actual or

expected performance is measured

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Strategic control
• Strategic control comprises
systematic monitoring at
strategic control points as well
as modifying the organization's
strategy on the basis of this
evaluation.

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Types of financial controls

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Benchmarking
Benchmarking is an approach for setting goals
and productivity measures based on best-
industry practices.

Three types of benchmarking:

 Strategic
 Operational
 Management

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What is Managing By Walking
Around?
• Management By
Walking Around
(MBWA)
– When a manager is
out in the work area
interacting with
employees

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How Do Managers Compare
Performance to Planned Goals?
• Range of Variation
– The acceptable parameters of variance between
actual performance and a standard
Deviations outside this range need attention

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When Does Control Take Place?
• Feedforward Control
– Control that takes place
before a work activity is
done
• Concurrent Control
– Control that takes place
while a work activity is in
progress

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Feedback Control

• Feedback Control
– Control that takes
place after a work
activity is done

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Feedforward control
What managers need for effective control a
system that will tell them potential problems,
giving them time to take corrective action
before problems occur.

Feedforward systems monitor inputs into a

process to ascertain if the inputs are as planned;
if they are not, the inputs or the process is
changed in order to obtain the desired results.

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How is an Organization’s
Information Controlled?
Managers deal with information controls in two
ways:
1. as a tool to help them control other
organizational activities
2. as an organizational area they need to control
• Management Information System (MIS)
– A system used to provide management with
needed information on a regular basis

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 Case study
Peter Weaver doesn’t like to follow the crowd. He thinks groupthink is a
common problem in many organizations. This former director of
marketing for a consumer products company believes differences of
opinion should be heard and appreciated. As Weaver states, “I have
always believed I should speak for what I believe to be true.”
He demonstrated his belief in being direct and candid throughout his
career. On one occasion, he was assigned to market Paul’s spaghetti-
sauce products. During the brand review, the company president said,
“Our spaghetti sauce is losing out to price-cutting competitors. We need
to cut our prices!” Peter found the courage to say he disagreed with the
president. He then explained the product line needed more variety and a
larger advertising budget. Prices should not be cut. The president
accepted Weaver’s reasoning.

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 Cont’d..
• Later, his supervisor approached him and said, “I wanted to say that,
but I just didn’t have the courage to challenge the president.” On
another occasion, the president sent Weaver and 16 other executives to
a weeklong seminar on strategic planning. Weaver soon concluded the
consultants were off base and going down the wrong path. Between
sessions, most of the other executives indicated they didn’t think the
consultants were on the right path. The consultants heard about the
dissent and dramatically asked participants whether they were in or
out. Those who said “Out” had to leave immediately.
As the consultants went around the room, every executive who
privately grumbled about the session said “In.” Weaver was fourth
from last. When it was his turn, he said “Out” and left the room. All
leaders spend time in reflection and self-examination to identify what
they truly believe and value.
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 Cont’d..
Their beliefs are tested and fine-tuned over time. True leaders can
tell you, without hesitation, what they believe and why. They don’t
need a teleprompter to remind them of their core beliefs. And, they
find the courage to speak up even when they know others will
disagree.
Questions
• What leadership traits did Weaver exhibit?
• If you were in Weaver’s shoes, what would you have done?
• List your three most important values.

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• https://www.youtube.com/watch?v=Xaf4iNOK
RyU

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